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Case Study: LEADERSHIP AND MANAGEMENT

ORGANIZATIONAL BEHAVIOR

EXPERIENCE | GROW | CONTRIBUTE

T W E L F T H E D I T I O N

SCHERMERHORN OSBORN HUNT UHL-BIEN

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For more information, visit www.wileyplus.com

WileyPLUS builds students’ confidence because it takes the guesswork out of studying by providing students with a clear roadmap:

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12th edition

ORGANIZATIONAL BEHAVIOR John R. Schermerhorn, Jr. | Richard N. Osborn | Mary Uhl-Bien | James G. Hunt

Ohio University Texas Tech UniversityWayne State University University of Nebraska

John Wiley & Sons, Inc.

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VICE PRESIDENT & EXECUTIVE PUBLISHER George Hoffman EXECUTIVE EDITOR Lisé Johnson DEVELOPMENTAL EDITOR Susan McLaughlin ASSOCIATE EDITOR Sarah Vernon PROJECT EDITOR Brian Baker ASSOCIATE DIRECTOR OF MARKETING Amy Scholz MARKETING MANAGER Kelly Simmons MARKETING ASSISTANT Ashley Tomeck DESIGN DIRECTOR Harry Nolan SENIOR CONTENT MANAGER Dorothy Sinclair SENIOR PRODUCTION EDITOR Erin Bascom SENIOR MEDIA EDITOR Allison Morris MEDIA SPECIALISTS Elena Santa Maria and Thomas Caruso PHOTO DEPARTMENT MANAGER Hilary Newman PHOTO RESEARCHER Lisa Passmore EDITORIAL ASSISTANT Melissa Solarz ILLUSTRATION EDITOR Anna Melhorn PRODUCTION MANAGEMENT SERVICES Ingrao Associates TEXT DESIGNER Madelyn Lesure COVER DESIGNER Wendy Lai COVER PHOTO ©ULTRA.F/Getty Images, Inc. UMBRELLA ICON ©Monti26/Shutterstock

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This book is printed on acid free paper. ∞

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ISBN 13 978-0-470-87820-0 978-1-118-12931-9

Printed in the United States of America.

10 9 8 7 6 5 4 3 2 1

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v

about the authors

Dr. John R. Schermerhorn, Jr. is the Charles G. O’Bleness Professor Emeritus of Management in the College of Business at Ohio University where he teaches undergraduate and MBA courses in management, organizational behavior, and Asian business. He earned a Ph.D. in organizational behavior from Northwestern University, after receiving an M.B.A. (with distinction) in management and inter- national business from New York University, and a B.S. in business administration from the State University of New York at Buffalo.

Dedicated to instructional excellence and serving the needs of practicing managers, Dr. Schermerhorn focuses on bridging the gap between the theory and practice of management in both the classroom and in his textbooks. He has won awards for teaching excellence at Tulane University, The University of Vermont, and Ohio University, where he was named a University Professor, the university’s leading campus-wide award for undergraduate teaching. He also received the excellence in leadership award for his service as Chair of the Management Educa- tion and Development Division of the Academy of Management.

Dr. Schermerhorn’s international experience adds a unique global dimension to his teaching and textbooks. He holds an honorary doctorate from the Univer- sity of Pécs in Hungary, awarded for his international scholarly contributions to management research and education. He has also served as a Visiting Professor of Management at the Chinese University of Hong Kong, as on-site Coordinator of the Ohio University MBA and Executive MBA programs in Malaysia, and as Kohei Miura visiting professor at the Chubu University of Japan. Presently he is Adjunct Professor at the National University of Ireland at Galway, a member of the gradu- ate faculty at Bangkok University in Thailand, and Permanent Lecturer in the PhD program at the University of Pécs in Hungary.

An enthusiastic scholar, Dr. Schermerhorn is a member of the Academy of Management, where he served as chairperson of the Management Education and Development Division. Educators and students alike know him as author of Man- agement 11e (Wiley, 2011) and Exploring Management 3e (2012), and senior co-author of Organizational Behavior 12/e (Wiley, 2012). His many books are available in Chinese, Dutch, French, Indonesian, Portuguese, Russian, and Span- ish language editions. Dr. Schermerhorn’s published articles are found in the Academy of Management Journal, Academy of Management Review Academy of Management Executive, Organizational Dynamics, Journal of Management Edu- cation, and the Journal of Management Development.

Dr. Schermerhorn is a popular guest speaker at colleges and universi- ties. His recent student and faculty workshop topics include innovations in business education, teaching the millennial generation, global perspectives in management education, and textbook writing and scholarly manuscript development.

Dr. John R. Schermerhorn, Jr.

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vi About the Authors

The late Dr. James G. ( Jerry) Hunt was the Paul Whitfi eld Horn Professor of Management, Professor of Health Organization Management, Former Director, Institute for Leadership Research, and former department Chair of Manage- ment, Texas Tech University. He received his Ph.D. and master’s degrees from the University of Illinois after completing a B.S. (with honors) at Michigan Technological University. Dr. Hunt co-authored an organization theory text and Core Concepts of Organizational Behavior (Wiley, 2004) and authored or co-authored three leadership monographs. He founded the Leadership Sym- posia Series and co-edited the eight volumes based on the series. He was the former editor of the Journal of Management and The Leadership Quarterly. He presented or published some 200 articles, papers, and book chapters, and among his better-known books are Leadership: A New Synthesis, published by Sage, and Out-of-the-Box Leadership, published by JAI. The former was a fi nalist for the Academy of Management’s 1993 Terry Distinguished Book Award. Dr. Hunt received the Distinguished Service Award from the Academy of Management, the Sustained Outstanding Service Award from the Southern Management Association, and the Barnie E. Rushing, Jr. Distinguished Re- searcher Award from Texas Tech University for his long-term contributions to management research and scholarship. He also lived and taught in England, Finland, and Thailand, and taught in China.

Dr. Richard N. Osborn is a Wayne State University Distinguished Professor, Pro- fessor of Management Emeritus, and former Board of Governors Faculty Fellow. He has received teaching awards at Southern Illinois University at Carbondale and Wayne State University, and he has also taught at Arizona State University, Monash University (Australia), Tulane University, University of Munich, and the University of Washington. He received a DBA from Kent State University after earning an MBA at Washington State University and a B.S. from Indiana Uni- versity. With over 200 presentations and publications, he is a charter member of the Academy of Management Journals Hall of Fame. Dr. Osborn is a lead- ing authority on international alliances in technology-intensive industries and is co-author of an organization theory text as well as Basic Organizational Behavior ( John Wiley & Sons, 1995, 1998). He has served as editor of interna- tional strategy for the Journal of World Business and Special Issue Editor for The Academy of Management Journal. He serves or has served as a member of the editorial boards for The Academy of Management Journal, The Academy of Management Review, Journal of High Technology Management, The Journal of Management, Leadership Quarterly, and Technology Studies, among others. He is very active in the Academy of Management, having served as divisional program chair and president, as well as the Academy representative for the In- ternational Federation of Scholarly Associations of Management. Dr. Osborn’s research has been sponsored by the Department of Defense, Ford Motor Com- pany, National Science Foundation, Nissan, and the Nuclear Regulatory Com- mission, among others. In addition to teaching, Dr. Osborn spent a number of years in private industry, including a position as a senior research scientist with the Battelle Memorial Institute in Seattle, where he worked on improving the safety of commercial nuclear power.

Dr. James G. (Jerry) Hunt

Dr. Richard N. Osborn

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About the Authors vii

Dr. Mary Uhl-Bien is the Howard Hawks Chair in Business Ethics and Leadership at the University of Nebraska. She earned her Ph.D. and M.B.A. in organizational behavior at the University of Cincinnati after completing an undergraduate degree in International Business and Spanish. She teaches organizational behavior, lead- ership, and ethics courses at the undergraduate and graduate (MBA and doctoral) levels, and has been heavily involved in executive education, teaching to business executives and physicians in the United States, China, Europe, and Saudi Arabia and to the senior executive service of the U.S. government for The Brookings Institute in Washington, D.C. She has been a visiting professor/scholar at Pablo de Olavide University in Seville, Spain, the Universidade Nova de Lisboa/Catolica Portuguesa in Lisbon, Portugal, and University Lund in Sweden.

Dr. Uhl-Bien’s research interests are in leadership, followership, and ethics. In addition to her conceptual work on complexity and relational leadership, some of the empirical projects she is currently involved in include investigations of “Lead- ership and Adaptability in the Healthcare Industry” (a $300,000 grant from Booz Allen Hamilton), “Adaptive Leadership and Innovation: A Focus on Idea Genera- tion and Flow” (at a major fi nancial institution in the U.S.), and “Social Construc- tions of Followership and Leading Up.” She has published in such journals as The Academy of Management Journal, the Journal of Applied Psychology, The Leader- ship Quarterly, the Journal of Management, and Human Relations. She won the Best Paper Award in The Leadership Quarterly in 2001 for her co-authored article on Complex Leadership. She has been on the editorial boards of The Academy of Management Journal, The Academy of Management Review, The Leadership Quarterly, Leadership, and The International Journal of Complexity in Leadership and Management, and is senior editor of the Leadership Horizons series (Infor- mation Age Publishers). Dr. Uhl-Bien has consulted with Disney, the U.S. Fish and Wildlife Service, British Petroleum, and the General Accounting Offi ce, and served as the executive consultant for State Farm Insurance Co. from 1998–2004. She has been a Visiting Scholar in Spain, Portugal, and Sweden. Dr. Uhl-Bien has trained Russian businesspeople for the American Russian Center at the University of Alaska Anchorage from 1993–1996, worked on a USAID grant at the Magadan Pedagogical Institute in Magadan, Russia from 1995–1996, and participated in a Fulbright-Hays grant to Mexico during the summer of 2003.

Dr. Mary Uhl-Bien

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viii

preface

Global warming, economic uncertainty, poverty, discrimination, unemployment, illiteracy . . . these are among the many issues and problems we face as citizens today. But how often do we stop and recognize our responsibilities for problem solving and positive action in this social context? What we do today will have a lasting impact on future generations. And whether we are talking about families, communities, nations, or the organizations in which we work and volunteer, the core question remains: How can we join together to best serve society?

Look again at the cover. Think about people working together and collaborat- ing in organizations around the world. Think about how organizations and their members grow, and how individuals can expand the positive impact of society’s institutions as their ideas and talents come together in supportive and nurturing work settings. And, think about the delicate balances between work and family, between individuals and teams, and between organizations and society that must be mastered in the quest for future prosperity.

Yes, our students do have a lot to consider in the complex and ever-shifting world of today. But, we believe they are up to the challenge. And, we believe that courses in organizational behavior have strong roles to play in building their capabilities to make good judgments and move organizational performance for- ward in positive and responsible ways.

That message is a fi tting place to begin Organizational Behavior, 12th Edi- tion. Everyone wants to have a useful and satisfying job and career; everyone wants all the organizations of society—small and large businesses, hospitals, schools, governments, nonprofi ts, and more—to perform well; everyone seeks a healthy and sustainable environment. In this context the lessons of our discipline are strong and applicable. Armed with an understanding of organizational behav- ior, great things are possible as people work, pursue careers, and contribute to society through positive personal and organizational accomplishments.

Organizational behavior is a discipline rich with insights for career and life skills. As educators, our job is to bring to the classroom and to students the great power of knowledge, understanding, and inquiry that characterizes our discipline and its commitment to understanding human behavior in organizations. What our students do with their talents will not only shape how organizations all contrib- ute to society, but also fundamentally alter lives around the globe. We must do our parts as educators to help them gain the understanding and confi dence to become leaders of tomorrow’s organizations.

JOHN R. SCHERMERHORN, JR. Ohio University

RICHARD N. OSBORN Wayne State University

MARY UHL-BIEN University of Nebraska

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about this book

Organizational Behavior, 12th Edition, brings to its readers the solid and com- plete content core of prior editions, an enriched and exciting “OB Skills Work- book,” and many revisions, updates, and enhancements that refl ect today’s dy- namic times.

Content All chapters are written so that they can be used in any sequence that best fi ts the instructor’s course design. Each has also been updated to refl ect new research fi ndings and current applications and issues. For this edition, major changes were made to strengthen the research component, expand and refocus the chapters dealing with individual behavior and performance, and more fully treat the emerging directions in leadership research and thinking. A module on Research Methods in OB has been placed online to offer easy ways to further enrich the course experience.

Ethics Focus To help students anticipate, understand, and confront the ethical challenges of work and careers today, we have continued our special feature in each chapter— Ethics in OB. This feature presents a situation or issue from an actual case or news report and asks a question of the student reader that requires personal refl ection on the ethics and ethics implications. Examples include “Workers Concerned about Ethical Workplace, Personality Testing, Social Loafi ng May Be Closer than You Think, Privacy in an Age of Social Networking, and Cheat Now . . . Cheat Later.”

Leadership Focus To focus students on their roles in demonstrating leadership in organizations, we revised the leadership feature to “Finding the Leader in You.” This feature helps students think about how they can develop their own leadership skills and capabilities to enhance organizational performance. Examples include Patricia Karter of Dancing Deer Baking, Jim Senegal of Costco, Karen Bryant of the Seattle Storm, and Jeff Bezos of Amazon.

Research Focus To better communicate the timely research foundations of OB, we have continued the popular Research Insights found in each chapter. Each high- lights an article from a respected journal such as the Academy of Manage- ment Journal and the Journal of Applied Psychology. Sample topics include

ix

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x About This Book

interactional justice, racial bias, social loafi ng, demographic faultlines, and workplace identities.

Applications Focus To help students apply the insights of OB to real situations and problems, each chapter includes Visual Sidebars that highlight key action points to re- member—such as “Things Are Changing as the Facebook Generation Goes to Work”; Margin Essays that provide brief and timely examples—such as “Employee Morale Varies Around the World,” and OB and Popular Culture that links movies and television to management insights—such as Moral Man- agement and John Q.

Pedagogy As always, our primary goal is to create a textbook that appeals to the student reader while still offering solid content. Through market research surveys and focus groups with students and professors, we continue to learn what features worked best from previous editions, what can be improved, and what can be added to accomplish this goal both effectively and effi ciently. Our response is a pedagogical frame that combines popular elements from the last edition with new ones.

• Chapter Opening—a timely, real-world vignette introduces the chapter, The Key Point helps clarify the topic, Chapter at a Glance highlights major study questions, and What’s Inside highlights the key features.

• Inside the Chapter—a variety of thematic embedded boxes as previously noted—Ethics in OB, Finding the Leader in You, OB in Popular Culture, and Research Insight, highlight relevant, timely, and global themes and situations that reinforce chapter content. Margin Photo Essays provide further short examples highlighting events and issues. To assist with chapter study and test preparation, each chapter has a running Margin Glossary and Margin List Identifi ers.

• End of Chapter—a Study Guide helps students review and test their mastery of chapter content. Key components are Key Questions and Answers (keyed to opening Chapter at a Glance topics), Key Terms, and a Self-Test (with multiple choice, short response, and essay questions). Next Steps: Top Choices from the OB Skills Workbook highlight the Cases for Critical Think- ing, Team and Experiential Exercises, and Self-Assessments found in the back of the book that complement each chapter.

The OB Skills Workbook The end-of-text OB Skills Workbook has become a hallmark feature of the text- book, and it has been updated and expanded for the new edition. This edi- tion features the Learning Style Inventory and Kouzes/Posner Student Leadership Practices Inventory. Both fi t well in an OB course as opportunities for substantial

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About This Book xi

student refl ection and course enhancement. The fi ve sections in the new updated workbook that offer many ways to extend the OB learning experience in creative and helpful ways are:

• Learning Style Inventory

• Student Leadership Practices Inventory

• Self-Assessment Portfolio

• Team and Experiential Exercises

• Cases for Critical Thinking

New Student and Instructor Support Organizational Behavior, 12th Edition, is supported by a comprehensive learn- ing package that assists the instructor in creating a motivating and enthusiastic environment.

Instructor’s Resource Guide The Instructor’s Resource Guide, written by Andrea Smith-Hunter, Siena College, offers helpful teaching ideas, advice on course development, sample assignments, and chapter-by-chapter text highlights, learning objectives, lecture outlines, class exercises, lecture notes, answers to end-of-chapter material, and tips on using cases.

Test Bank This comprehensive Test Bank, written by Amit Shah, Frostburg University, is available on the instructor portion of the Web site and consists of over 200 questions per chapter. Each chapter has true/false, multiple choice, and short answer questions. The questions are designed to vary in degree of diffi - culty to challenge your OB students.

The Computerized Test Bank is for use on a PC running Windows. It contains content from the Test Bank provided within a test-generating program that allows instructors to customize their exams.

PowerPoint This robust set of lecture/interactive PowerPoints prepared by Karen Edwards, Chemeketa Community College, is provided for each chapter to enhance your students’ overall experience in the OB classroom. The PowerPoint slides can be accessed on the instructor portion of the Web site and include lec- ture notes to accompany each slide.

Web Quizzes This online study guide with online quizzes varies in level of diffi culty. Written by Amit Shah, Frostburg University, it is designed to help your students evaluate their individual progress through a chapter. Web quizzes are available on the student portion of the Web site. Here students will have the abil- ity to test themselves with 15–25 questions per chapter and include true-false and multiple choice questions.

Personal Response System The Personal Response System questions (PRS or “Clickers”) for each chapter of Organizational Behavior 12th Edition is

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xii About This Book

designed to spark discussion/debate in the OB classroom. For more information on PRS, please contact your local Wiley sales representative.

Companion Web Site The text’s Web site at http://www.wiley.com/college/ schermerhorn contains myriad tools and links to aid both teaching and learning, including nearly all of the student and instructor resources.

Business Extra Select Online Courseware System http://www.wiley. com/college/bxs. Wiley has launched this program that provides an instructor with millions of content resources from an extensive database of cases, jour- nals, periodicals, newspapers, and supplemental readings. This courseware system lends itself extremely well to the integration of real-world content and allows instructors to convey the relevance of the course content to their students.

Videos and Video Teaching Guide Short video clips tied to the major topics in organizational behavior are available. These clips provide an excellent starting point for lectures or for general class discussion. Teaching notes for using the video clips, written by Stacy Shriver, University of Colorado, Boulder, are available on the instructor’s portion of the Web site.

WileyPLUS WileyPLUS is an innovative, research-based, online environment for effective teaching and learning.

What do students receive with WileyPLUS?

A Research-based Design WileyPLUS provides an online environment that integrates relevant resources, including the entire digital textbook, in an easy-to- navigate framework that helps students study more effectively.

• WileyPLUS adds structure by organizing textbook content into smaller, more manageable “chunks.”

• Related media, examples, and sample practice items reinforce the learning objectives.

One-on-One Engagement With WileyPLUS for Organizational Behavior, 12e, students receive 24/7 access to resources that promote positive learning out- comes. Students engage with related examples (in various media) and sample practice items, including:

• Animated Figures

• CBS/BBC Videos

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About This Book xiii

• Self-Assessments quizzes students can use to test themselves on topics such as emotional intelligence, diversity awareness, and intuitive ability.

• Management Calendar Including Daily Management Tips

• iPhone Applications for Download

• Flash Cards

• Hot Topic Modules

• Crossword Puzzles

• Self-Study Questions

Measurable Outcomes Throughout each study session, students can assess their progress and gain immediate feedback. WileyPLUS provides precise report- ing of strengths and weaknesses, as well as individualized quizzes, so that stu- dents are confi dent they are spending their time on the right things. With Wiley- PLUS, students always know the exact outcome of their efforts.

What do instructors receive with WileyPLUS?

WileyPLUS provides reliable, customizable resources that reinforce course goals inside and outside of the classroom as well as visibility into individual student progress. Pre-created materials and activities help instructors optimize their time:

Customizable Course Plan WileyPLUS comes with a pre-created Course Plan designed by a subject matter expert uniquely for this course. Simple drag-and- drop tools make it easy to assign the course plan as-is or modify it to refl ect your course syllabus.

Pre-created Activity Types Include:

• Questions

• Readings and Resources

• Presentation

• Print Tests

• Concept Mastery

• Project

Course Materials and Assessment Content:

• Lecture Notes PowerPoint Slides

• Classroom Response System (Clicker) Questions

• Image Gallery

• Instructor’s Manual

• Gradable Reading Assignment Questions (embedded with online text)

• Question Assignments: all end-of-chapter problems

• Testbank

• Pre- and Post-Lecture Quizzes

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xiv About This Book

• Web Quizzes

• Video Teaching Notes—includes questions geared towards applying text concepts to current videos

Gradebook WileyPLUS provides instant access to reports on trends in class performance, student use of course materials, and progress towards learning objectives, helping inform decisions and drive classroom discussions.

WileyPLUS. Learn More. www.wileyplus.com. Powered by proven technology and built on a foundation of cognitive re-

search, WileyPLUS has enriched the education of millions of students in over 20 countries around the world.

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xv

contributors

Cases for Critical Thinking Barry R. Armandi, State University of New York, David S. Chappell, Ohio Univer- sity, Bernardo M. Ferdman, Alliant International University, Placido L. Gallegos, Southwest Communications Resources, Inc. and the Kaleel Jamison Consulting Group. Inc., Carol Harvey, Assumption College, Ellen Ernst Kossek, Michigan State University, Barbara McCain, Oklahoma City University, Mary McGarry, Empire State College, Marc Osborn, R&R Partners, Phoenix, AZ, Franklin Ramsoomair, Wilfrid Laurier University, Hal Babson and John Bowen of Columbus State Com- munity College.

Experiential Exercises and Self-Assessment Inventories Barry R. Armandi, State University of New York, Old Westbury, Ariel Fishman, The Wharton School, University of Pennsylvania, Barbara K. Goza, University of California, Santa Cruz, D.T. Hall, Boston University, F.S. Hall, University of New Hampshire, Lady Hanson, California State Polytechnic University, Pomona, Conrad N. Jackson, MPC, Inc., Mary Khalili, Oklahoma City University, Robert Led- man, Morehouse College, Paul Lyons, Frostburg State University, J. Marcus Maier, Chapman University, Michael R. Manning, New Mexico State University, Barbara McCain, Oklahoma City University, Annie McKee, The Wharton School, University of Pennsylvania, Bonnie McNeely, Murray State University, W. Alan Randolph, University of Baltimore, Joseph Raelin, Boston College, Paula J. Schmidt, New Mexico State University, Susan Schor, Pace University, Timothy T. Serey, Northern Kentucky University, Barbara Walker, Diversity Consultant, Paula S. Weber, New Mexico Highlands University, Susan Rawson Zacur, University of Baltimore.

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xvi

acknowledgments

Organizational Behavior, 12th Edition, benefi ts from insights provided by a dedi- cated group of management educators from around the globe who carefully read and critiqued draft chapters of this edition. We are pleased to express our ap- preciation to the following colleagues for their contributions to this new edition.

Merle Ace Chi Anyansi-Archibong Terry Armstrong Leanne Atwater Forrest Aven Steve Axley Abdul Aziz Richard Babcock David Baldridge Michael Banutu-Gomez Robert Barbato Richard Barrett Nancy Bartell Anna Bavetta Robb Bay Hrach Bedrosian Bonnie Betters-Reed Gerald Biberman Melinda Blackman Lisa Bleich Mauritz Blonder Dale Blount G. B. Bohn William Bommer H. Michal Boyd Pat Buhler Gene E. Burton Roosevelt Butler Ken Butterfi eld

Joseph F. Byrnes Michal Cakrt Tom Callahan Daniel R. Cillis Nina Cole Paul Collins Ann Cowden Deborah Crown Roger A. Dean Robert Delprino Emmeline De Pillis Pam Dobies Delf Dodge Dennis Duchon Michael Dumler Ken Eastman Norb Elbert Theresa Feener Janice M. Feldbauer Claudia Ferrante Mark Fichman Dalmar Fisher J. Benjamin Forbes Dean Frear Cynthia V. Fukami Normandie Gaitley Daniel Ganster Joe Garcia Virginia Geurin

Robert Giambatista Manton Gibbs Eugene Gomolka Barbara Goodman Stephen Gourlay Frederick Greene Richard Grover Bengt Gustafsson Peter Gustavson Lady Alice Hanson Don Hantula Kristi Harrison William Hart Nell Hartley Neil J. Humphreys David Hunt Eugene Hunt Howard Kahn Harriet Kandelman Paul N. Keaton Andrew Klein Leslie Korb Peter Kreiner Eric Lamm Donald Lantham Jim Lessner Les Lewchuk Kristi M. Lewis Robert Liden

Heidi Barclay, Metropolitan State Nancy Fredericks, San Diego State Cindy Geppert, Palm Beach State

College Jim Maddox, Friends University Randy McCamey, Tarleton State Wendy Smith, U Del Barcley Johnson, Western Michigan U. Lam Nguyen, Palm Beach State

College

Robert Blanchard, Salem State Suzanne Crampton, Grand Valley State

University Jody Tolan, USC Marshall Gary J. Falcone, Ed.D., LaSalle

University Marcia Marriott, Monroe CC Edward Kass, USFCA Sidney Siegel, Drexel

We also thank those reviewers who contributed to the success of previous editions.

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Acknowledgments xvii

Beverly Linnell Kathy Lippert Michael London Michael Lounsbury Carol Lucchesi David Luther Lorna Martin Tom Mayes Daniel McAllister Douglas McCabe James McFillen Jeanne McNett Charles Milton Herff L. Moore David Morand David Morean Sandra Morgan Paula Morrow Richard Mowday Christopher Neck Linda Neider Judy C. Nixon Regina O’Neill Dennis Pappas Edward B. Parks Robert F. Pearse Lawrence Peters Prudence Pollard

Joseph Porac Samuel Rabinowitz Franklin Ramsoomair Clint Relyea Bobby Remington Charles L. Roegiers Steven Ross Joel Rudin Michael Rush Robert Salitore Terri Scandura Mel Schnake Holly Schroth L. David Schuelke Richard J. Sebastian Anson Seers William Sharbrough R. Murray Sharp Ted Shore Allen N. Shub Sidney Siegal Dayle Smith Mary Alice Smith Walter W. Smock Pat Sniderman Ritch L. Sorenson Shanthi Srinivas Paul L. Starkey

Robert Steel Ronni Stephens Ron Stone Tom Thompson Ed Tomlinson Sharon Tucker Nicholas Twigg Tony Urban Ted Valvoda Joyce Vincelette David Vollrath Andy Wagstaff W. Fran Waller Charles Wankel Edward Ward Fred A. Ware, Jr. Andrea F. Warfi eld Harry Waters, Jr. Joseph W. Weiss Deborah Wells Robert Whitcomb Donald White Bobbie Williams Barry L. Wisdom Wayne Wormley Barry Wright Kimberly Young Raymond Zammuto

We are grateful for all the hard work of the supplements authors who worked to develop the comprehensive ancillary package described above. We thank Andrea Smith-Hunter, Siena College, for preparing the Instructor’s Resource Guide, Amit Shah, Frostburg University, for creating the Test Bank and the web quizzes, Karen Edwards, Chemeketa Community College, for developing the PowerPoint presen- tations, and Stacy Shriver, University of Colorado, Boulder, for writing the Video Teaching Notes. We thank Brandon Warga of Kenyon College for his chapter open- ing vignettes, and Robert (Lenie) Holbrook of Ohio University for both the OB in Popular Culture feature and the creative instructor’s guide Art Imitates Life.

As always, the support staff at John Wiley & Sons was most helpful in the various stages of developing and producing this edition. We would especially like to thank Lisé Johnson (Acquisitions Editor), George Hoffman (Publisher), Susan McLaughlin (Developmental Editor), Sarah Vernon (Associate Editor), and Melissa Solarz (Editorial Assistant) for their extraordinary efforts in support of this project. They took OB to heart and did their very best to build a high-performance team in support of this book. We thank everyone at Wiley for maintaining the quest for quality and timeliness in all aspects of the book’s content and design. Special grat- itude goes to Maddy Lesure as the creative force behind the new design. We also thank Erin Bascom and Suzanne Ingrao of Ingrao Associates for their excellent production and design assistance, Allie Morris for overseeing the media develop- ment, and Amy Scholz for leading the marketing campaign. Thank you everyone!!

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xviii

brief contents

1 Introducing Organizational Behavior 3

2 Individual Differences, Values, and Diversity 25 3 Emotions, Attitudes, and Job Satisfaction 53 4 Perception, Attribution, and Learning 75 5 Motivation Theories 101 6 Motivation and Performance 121

7 Teams in Organizations 145 8 Teamwork and Team Performance 169 9 Decision Making and Creativity 195 10 Confl ict and Negotiation 219

11 Communication and Collaboration 241 12 Power and Politics 263 13 Leadership Essentials 291 14 Leadership Challenges and Organizational Change 319

15 Organizational Culture and Innovation 347 16 Organizational Goals and Structures 373 17 Strategy, Technology, and Organizational Design 399

Learning Style Inventory W-9 Student Leadership Practices Inventory W-13 Self-Assessment Portfolio W-33 Team and Experiential Exercises W-55 Cases for Critical Thinking W-99

Research Methods in OB

part 1 Organizational Behavior Today

part 2 Individual Behavior and Performance

part 3 Teams and Teamwork

part 4 Infl uence Processes and Leadership

part 5 Organizational Context

OB Skills Workbook

OB Module Online

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xix

contents

part 1 Organizational Behavior Today 1 Introducing Organizational Behavior 3 Introducing Organizational Behavior 4

Why Organizational Behavior Is Important 4 Scientifi c Foundations of Organizational Behavior 4 Organizational Behavior in a Changing World 6

Organizations as Work Settings 8 Organizational Behavior in Context 9 Organizational Environments and Stakeholders 9 Diversity and Multiculturalism 10

Management and Leadership 11 Managerial Activities and Roles 12 Managerial Skills 13 Leadership in Organizations 14 Ethical Management and Leadership 16

Learning about Organizational Behavior 17 Learning from Experience 18 Learning Styles 18 Learning Guide to Organizational Behavior 12/E 19

Chapter 1 Study Guide 20

part 2 Individual Behavior and Performance 2 Individual Differences, Values, and Diversity 25 Individual Differences 26

Self-Awareness and Awareness of Others 26 Components of Self 26 Nature versus Nurture 27

Personality 29 Big Five Personality Traits 29 Social Traits 29 Personal Conception Traits 31 Emotional Adjustment Traits 34

Personality and Stress 35 Sources of Stress 35 Outcomes of Stress 36 Managing Stress 37

Values 38 Sources of Values 38 Personal Values 39 Cultures Values 40

Diversity 42 Importance of Diversity 42 Types of Diversity 42 Challenges in Managing Diversity 47

Chapter 2 Study Guide 48

3 Emotions, Attitudes, and Job Satisfaction 53 Understanding Emotions and Moods 54

The Nature of Emotions 54 Emotional Intelligence 54 Types of Emotions 56 The Nature of Moods 56

How Emotions and Moods Infl uence Behavior 57 Emotion and Mood Contagion 58 Emotional Labor 58 Cultural Aspects of Emotions and Moods 59 Emotions and Moods as Affective Events 60

How Attitudes Infl uence Behavior 60 Components of Attitudes 61 Linking Attitudes and Behavior 62 Attitudes and Cognitive Consistency 62 Types of Job Attitudes 62

Job Satisfaction and Its Importance 63 Components of Job Satisfaction 64 Job Satisfaction Trends 65 How Job Satisfaction Infl uences Work Behavior 66 Linking Job Satisfaction and Job Performance 67

Chapter 3 Study Guide 70

4 Perception, Attribution, and Learning 75 The Perception Process 76

Factors Infl uencing Perception 76 Information Processing and the Perception Process 78 Perception, Impression Management, and Social

Media 80

Common Perceptual Distortions 81 Stereotypes 81 Halo Effects 83 Selective Perception 83 Projection 84

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xx Contents

Contrast Effects 84 Self-Fulfi lling Prophecies 85

Perception, Attribution, and Social Learning 86 Importance of Attributions 86 Attribution Errors 87 Attribution and Social Learning 87

Learning by Reinforcement 89 Operant Conditioning and the Law of Effect 89 Positive Reinforcement 90 Negative Reinforcement 94 Punishment 94 Extinction 94 Reinforcement Pros and Cons 95

Chapter 4 Study Guide 95

5 Motivation Theories 101 What Is Motivation? 102

Motivation Defi ned 102 Types of Motivation Theories 102

Needs Theories of Motivation 103 Hierarchy of Needs Theory 103 ERG Theory 104 Acquired Needs Theory 104 Two-Factor Theory 106

Equity Theory of Motivation 107 Equity and Social Comparisons 107 Equity Theory Predictions and Findings 108 Equity and Organizational Justice 109

Expectancy Theory of Motivation 111 Expectancy Terms and Concepts 111 Expectancy Theory Predictions 111 Expectancy Implications and Research 112

Goal-Setting Theory of Motivation 112 Motivational Properties of Goals 113 Goal-Setting Guidelines 113 Goal Setting and the Management Process 115

Chapter 5 Study Guide 116

6 Motivation and Performance 121 Motivation and Rewards 122

Integrated Model of Motivation 122 Intrinsic and Extrinsic Rewards 122 Pay for Performance 124

Motivation and Performance Management 127 Performance Management Process 127

Performance Measurement Methods 128 Performance Measurement Errors 131

Motivation and Job Design 131 Scientifi c Management 132 Job Enlargement and Job Rotation 133 Job Enrichment 133 Job Characteristics Model 134

Alternative Work Schedules 136 Compressed Workweeks 137 Flexible Working Hours 137 Job Sharing 138 Telecommuting 138 Part-Time Work 138

Chapter 6 Study Guide 139

part 3 Teams and Teamwork 7 Teams in Organizations 145 Teams in Organizations 146

Teams and Teamwork 146 What Teams Do 147 Organizations as Networks of Teams 147 Cross-Functional and Problem-Solving

Teams 149 Self-Managing Teams 150 Virtual Teams 151

Team Effectiveness 152 Criteria of an Effective Team 152 Synergy and Team Benefi ts 153 Social Facilitation 153 Social Loafi ng and Team Problems 153

Stages of Team Development 156 Forming Stage 156 Storming Stage 156 Norming Stage 157 Performing Stage 157 Adjourning Stage 158

Understanding Teams at Work 158 Open Systems Model of Teams 158 Team Resources and Setting 159 Nature of the Team Task 160 Team Size 160 Membership Composition of the Team 161 Diversity and Team Performance 162 Team Processes 164

Chapter 7 Study Guide 164

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Contents xxi

8 Teamwork and Team Performance 169 High Performance Teams 170

Characteristics of High-Performance Teams 170

The Team-Building Process 171 Team-Building Alternatives 172

Improving Team Processes 173 Entry of New Members 174 Task and Maintenance Leadership 174 Roles and Role Dynamics 175 Team Norms 176 Team Cohesiveness 179 Inter-Team Dynamics 180

Improving Team Communications 182 Communication Networks 183 Proxemics and Use of Space 184 Communication Technologies 184

Improving Team Decisions 185 Ways Teams Make Decisions 185 Assets and Liabilities of Team Decisions 187 Groupthink Symptoms and Remedies 188 Team Decision Techniques 189

Chapter 8 Study Guide 190

9 Decision Making and Creativity 195 The Decision-Making Process 196

Steps in Decision Making 196 Ethical Reasoning and Decision Making 197 Types of Decisions 200 Decision Environments 201 Risk Management in Decision Making 202

Decision-Making Models 202 Classical Decision Model 203 Behavioral Decision Model 203 Systematic and Intuitive Thinking 204

Decision-Making Traps and Issues 205 Judgmental Heuristics 205 Decision Biases 206 Knowing When to Decide 206 Knowing Who to Involve 207 Knowing When to Quit 209

Creativity in Decision Making 211 Stages of Creative Thinking 211 Personal Creativity Drivers 212 Team Creativity Drivers 212

Chapter 9 Study Guide 214

10 Confl ict and Negotiation 219 Confl ict in Organizations 220

Types of Confl ict 220 Levels of Confl ict 220 Functional and Dysfunctional Confl ict 222 Culture and Confl ict 223

Confl ict Management 224 Stages of Confl ict 224 Hierarchical Causes of Confl ict 225 Contextual Causes of Confl ict 225 Indirect Confl ict Management

Strategies 226 Direct Confl ict Management Strategies 228

Negotiation 230 Negotiation Goals and Outcomes 230 Ethical Aspects of Negotiation 232 Organizational Settings for Negotiation 232

Negotiation Strategies 232 Approaches to Distributive

Negotiation 233 How to Gain Integrative Agreements 234 Common Negotiation Pitfalls 235 Third-Party Roles in Negotiation 235

Chapter 10 Study Guide 237

part 4 Infl uence Processes and Leadership 11 Communication and Collaboration 241 The Nature of Communication 242

The Communication Process 242 Feedback and Communication 243 Nonverbal Communication 244

Interpersonal Communication 245 Communication Barriers 245 Active Listening 246 Cross-Cultural Communication 248

Organizational Communication 251 Communication Channels 251 Communication Flows 252 Status Effects 255

Collaborative Work Environments 255 Collaboration Technologies 255 Interactional Transparency 256 Supportive Communication Principles 257

Chapter 11 Study Guide 258

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xxii Contents

12 Power and Politics 263 Power and Infl uence 264

Interdependence, Legitimacy, and Power 264 Obedience 265 Acceptance of Authority and the Zone of Indifference 266

Sources of Power and Infl uence 268 Position Power 268 Personal Power 270 Power and Infl uence Capacity 272 Relational Infl uence Techniques 274

Empowerment 275 Keys to Empowerment 275 Power as an Expanding Pie 276 From Empowerment to Valuing People 277

Organizational Politics 278 Traditions of Organizational Politics 278 Politics of Self-Protection 281 Politics and Governance 283

Chapter 12 Study Guide 286

13 Leadership Essentials 291 Leadership 292

Managers versus Leaders 292 Trait Leadership Perspectives 293 Behavioral Leadership Perspectives 294

Situational Contingency Leadership 296 Fiedler’s Leadership Contingency View 296 Path-Goal View of Leadership 300 Hersey and Blanchard Situational Leadership

Model 301 Substitutes for Leadership 304

Follower-Centered Approaches 305 Implicit Leadership Theories (ILTs) 305 Implicit Followership Theories 307

Inspirational and Relational Leadership Perspectives 309

Charismatic Leadership 309 Transactional and Transformational

Leadership 310 Leader—Member Exchange Theory 313

Chapter 13 Study Guide 314

14 Leadership Challenges and Organizational Change 319 Moral Leadership 320

Authentic Leadership 320

Spiritual Leadership 320 Servant Leadership 322 Ethical Leadership 323

Shared Leadership 324 Shared Leadership in Work Teams 324 Shared Leadership and Self-Leadership 326

Leadership across Cultures 327 The GLOBE Perspective 328 Leadership Aspects and Culture 329 Culturally Endorsed Leadership Matches 330 Universally Endorsed Aspects of Leadership 331

Leading Organizational Change 332 Contexts for Leadership Action 332 Leaders as Change Agents 335 Planned Change Strategies 338 Resistance to Change 339

Chapter 14 Study Guide 342

part 5 Organizational Context 15 Organizational Culture and Innovation 347 Organizational Culture 348

Functions of Organizational Culture 348 Subcultures and Countercultures 350 National Culture and Corporate Culture 351

Understanding Organizational Cultures 353 Layers of Cultural Analysis 353 Stories, Rites, Rituals, and Symbols 354 Cultural Rules and Roles 355 Shared Values, Meanings, and Organizational

Myths 356

Innovation in Organizations 360 The Process of Innovation 361 Product and Process Innovations 362 Balancing Exploration and Exploitation 364

Managing Organizational Culture and Innovation 365

Management Philosophy and Strategy 365 Building, Reinforcing, and Changing Culture 366 Tensions Between Cultural Stability

and Innovation 367

Chapter 15 Study Guide 368

16 Organizational Goals and Structures 373 Organizational Goals 374

Societal Goals 374

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Output Goals 375 Systems Goals 375

Hierarchy and Control 377 Organizations as Hierarchies 377 Controls Are a Basic Feature 380 Centralization and Decentralization 383

Organizing and Coordinating Work 384 Traditional Types of Departments 385 Coordination 388

Bureaucracy and Beyond 392 Mechanistic Structures and the Machine

Bureaucracy 392 Organic Structures and the Professional

Bureaucracy 393 Hybrid Structures 393

Chapter 16 Study Guide 394

17 Strategy, Technology, and Organizational Design 399 Strategy and Organizational Learning 400

Strategy 400 Organizational Learning 401 Linking Strategy and Organizational Learning 403

Strategy and Organizational Design 404 Organizational Design and Strategic Decisions 404 Organizational Design, Age, and Growth 405 Smaller Size and the Simple Design 406

Technology and Organizational Design 408 Operations Technology and Organizational

Design 408

Adhocracy as a Design Option for Innovation and Learning 409

Information Technology and Organizational Design 411

Environment and Organizational Design 413 Environmental Complexity 414 Using Networks and Alliances 415

Strategic Leadership of the Whole Organization 416 Strategic Leadership and the Challenges at Multiple

Levels 416 Developing a Top-Management Team 417 Using Top-Management Leadership Skills 419

Chapter 17 Study Guide 421

OB Skills Workbook W-1 Learning Style Inventory W-9

Student Leadership Practices Inventory W-13

Self-Assessment Portfolio W-33

Team and Experiential Exercises W-55

Cases for Critical Thinking W-99

Glossary G-1

Self-Test Answers ST-1

Notes N-1

Photo Credits PC-1

Organization Index OI-1

Name Index NI-1

Subject Index SI-1

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