Organizational behavior a critical thinking approach pdf

CH 7 & 8 HW
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What has seemed to be the major problem facing NASA? Apply your knowledge of group dynamics and decision making to identify the problem.
What must NASA accomplish to ensure the vitality of the space program? Has groupthink accounted for some of NASA’s problems? If so, what symptoms can you identify?
What group-decision making challenges has NASA faced in changing its culture?

Organizational Behavior

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We dedicate Organizational Behavior: A Critical-Thinking Approach to all of our students who have believed in us, inspired us, and encouraged us to try new ways of teaching.

Chris Neck dedicates this book to his wife, Jennifer, and his children, Bryton and GiGe, for helping him realize what is truly important in life.

Jeff Houghton dedicates this book to his wife, Loree, and sons, Pierce and Sloan, and thanks them for all their support, encouragement, and love.

Emma Murray dedicates this book to her husband, Sam, and her children, Ava and Anya, for their unending love and support.

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Organizational Behavior

A Critical-Thinking Approach

Christopher P. Neck Arizona State University Jeffery D. Houghton

West Virginia University Emma L. Murray

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Printed in the United States of America

Names: Neck, Christopher P., author. | Houghton, Jeffery D., author. | Murray, Emma L., author.

Title: Organizational behavior : a critical-thinking approach / Christopher P. Neck, Jeffery D. Houghton, Emma L. Murray.

Description: Los Angeles : SAGE, [2017] | Includes bibliographical references and index.

Identifiers: LCCN 2015039717 | ISBN 9781506314402 (hardcover : alk. paper)

Subjects: LCSH: Organizational behavior.

Classification: LCC HD58.7 .N43 2017 | DDC 658.3—dc23 LC record available at http://lccn.loc.gov/2015039717

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Brief Contents

Preface Acknowledgments About the Authors Part 1. Introduction

Chapter 1. Why Organizational Behavior Matters Part 2. Individual Processes

Chapter 2. Diversity and Individual Differences Chapter 3. Emotions, Attitudes, and Stress Chapter 4. Perception and Learning Chapter 5. Motivation: Concepts and Theoretical Perspectives Chapter 6. Motivation: Practices and Applications

Part 3. Teams and Teamwork Chapter 7. Teams Chapter 8. Decision Making and Ethics Chapter 9. Creativity and Innovation Chapter 10. Conflict and Negotiation

Part 4. Leadership and Influence Processes Chapter 11. Leadership Perspectives Chapter 12. Influence, Power, Politics Chapter 13. Effective Communication

Part 5. Organizational Context Chapter 14. Organizational Culture Chapter 15. Organizational Strategy Chapter 16. Organizational Change and Development Chapter 17. Organizational Structure, Design, and Technology

Glossary Endnotes Self-Tests Name Index Subject Index

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Detailed Contents

Preface Acknowledgments About the Authors Part 1. Introduction

Chapter 1. Why Organizational Behavior Matters What Is Organizational Behavior and Why Is It Important? Managing Human Capital

Value Rareness Inimitability

Behavioral Science Disciplines That Contribute to OB OB in the Real World

Psychology Sociology Social Psychology Political Science Anthropology

A Critical-Thinking Approach to OB The Scientific Method

Examining the Evidence Open Systems Theory

OB Challenges and Opportunities Globalization Economic Factors Workforce Diversity Customer Service People Skills Innovation and Change Sustainability

Global Ethics Three Levels of Analysis in OB

Individuals Teams Organizations

Positive OB and High-Involvement Management In Review Key Terms Exercise 1.1 Exercise 1.2

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Exercise 1.3 Case Study 1.1 Self-Assessment 1.1

Part 2. Individual Processes Chapter 2. Diversity and Individual Differences

Diversity in OB Surface-Level and Deep-Level Diversity Age/Generation Diversity Race and Ethnicity Gender Diversity and Sexual Orientation Diversity of Abilities Diversity Training

The Importance of Individual Differences OB in the Real World Nature Versus Nurture Myers-Briggs Type Indicator and the Four Temperaments

Myers-Briggs Preferences The Sixteen Myers-Briggs Types

The Big Five Model Applying The Big Five

Examining the Evidence Other Personality Attributes In Review Key Terms Thinking Critically About the Case of Laura Pierce Exercise 2.1 Exercise 2.2 Exercise 2.3 Case Study 2.1 Self-Assessment 2.1

Chapter 3. Emotions, Attitudes, and Stress Emotions in Organizational Behavior Emotions in the Workplace

Emotional Contagion Emotional Labor Emotional Regulation Emotional Intelligence

Attitudes and Behavior How Attributes Are Created

OB in the Real World Cognitive Dissonance

Common Workplace Attitudes

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Stress in the Workplace Stressors

Stress-Related Outcomes and Wellness Managing Stress

Examining the Evidence Wellness

In Review Key Terms Thinking Critically About the Case of Laura Pierce Exercise 3.1 Exercise 3.2 Exercise 3.3 Case Study 3.1 Self-Assessment 3.1

Chapter 4. Perception and Learning Perception: Interpreting Our Environment Components of the Selection Process

The Perceiver The Environment The Focal Object

Why Is Perception Important? Common Perceptual Distortions Common Attribution Errors Learning Processes: Behavioral Theory

Classical Conditioning OB in the Real World

Operant Conditioning Theory Reinforcement Theory

Learning Processes: The Cognitive View Examining the Evidence

Triadic Reciprocal Model of Behavior In Review Key Terms Thinking Critically About the Case of Laura Pierce Exercise 4.1 Exercise 4.2 Exercise 4.3 Case Study 4.1 Self-Assessment 4.1

Chapter 5. Motivation: Concepts and Theoretical Perspectives The Motivation Process OB in the Real World

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Needs Theories Maslow’s Hierarchy of Needs ERG Theory Herzberg’s Two-Factor Theory McClelland’s Acquired Needs Theory Money as a Motivator

Examining the Evidence Equity Theory

Organizational Justice Goal-Setting Theory

Specific Goals Difficult Goals Goal Acceptance and Commitment Feedback

Expectancy Theory In Review Key Terms Thinking Critically About the Case of Kate O’Donnell Exercise 5.1 Exercise 5.2 Exercise 5.3 Case Study 5.1 Self-Assessment 5.1

Chapter 6. Motivation: Practices and Applications Intrinsic Motivation OB in the Real World Types of Extrinsic Rewards

Seniority-Based Pay Job Content–Based Pay Skill-Based Pay Performance-Based Pay

Motivation Through Job Design Psychological Empowerment Nontraditional Work Schedules Examining the Evidence In Review Key Terms Thinking Critically About the Case of Katie O’Donnell Exercise 6.1 Exercise 6.2 Exercise 6.3 Case Study 6.1

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Self-Assessment 6.1 Part 3. Teams and Teamwork

Chapter 7. Teams Teams and Teamwork in Contemporary Organizations

Teams Versus Groups Are Teams Effective?

Types of Teams OB in the Real World A Model of Team Effectiveness: Context and Composition

Team Contextual Influences Team Composition

A Model of Team Effectiveness: Processes and Outcomes Team Norms and Cohesion Synergy: Process Gains and Losses

Examining the Evidence Team Decision Making

Advantages and Disadvantages of Team Decision Making Team Decision Approaches

In Review Key Terms Thinking Critically About the Case of Brian Stevens Exercise 7.1 Exercise 7.2 Exercise 7.3 Case Study 7.1 Self-Assessment 7.1

Chapter 8. Decision Making and Ethics Decision Making and Problem Solving A Rational Model of Decision Making

Define the Problem Identify and Weigh Decision Criteria Generate Multiple Alternatives Rate Alternatives on the Basis of Decision Criteria Choose, Implement, and Evaluate the Best Alternative

Decision Making in the Real World Bounded Rationality Satisficing Decisions Intuition Heuristics Biases and Errors

Examining the Evidence Ethical Decision Making in Organizations

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OB in the Real World Ethical Decision-Making Approaches In Review Key Terms Thinking Critically About the Case of Brian Stevens Exercise 8.1 Exercise 8.2 Exercise 8.3 Case Study 8.1 Self-Assessment 8.1

Chapter 9. Creativity and Innovation Creativity and Innovation in Individuals, Teams, and Organizations OB in the Real World A Three-Component Model of Creativity

Domain-Relevant Skills and Expertise Creativity-Relevant Processes Intrinsic and Extrinsic Motivation

Support for Creativity in Organizations Creative Potential Versus Practiced Creativity Three Types of Support for Creativity

Examining the Evidence The Innovation Process

Idea Generation Problem Solving Implementation and Diffusion

Types of Innovation in Organizations In Review Key Terms Thinking Critically About the Case of Brian Stevens Exercise 9.1 Exercise 9.2 Exercise 9.3 Case Study 9.1 Self-Assessment 9.1

Chapter 10. Conflict and Negotiation Conflict in Teams and Organizations

Functional and Dysfunctional Conflict Types of Conflict The Conflict Process

Conflict Management Strategies Examining the Evidence Trust in Organizations

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Types of Trust Outcomes of Trust

Negotiation and Dispute Resolution Getting Ready to Negotiate

OB in the Real World Shaping Expectations Providing Supporting Evidence Negotiating the Deal Agreement and Implementation Third-Party Dispute Resolution Approaches

Bargaining Approaches Integrative Bargaining Strategies Other Negotiating Strategies

In Review Key Terms Thinking Critically About the Case of Brian Stevens Exercise 10.1 Exercise 10.2 Exercise 10.3 Case Study 10.1 Self-Assessment 10.1

Part 4. Leadership and Influence Processes Chapter 11. Leadership Perspectives

What Is Leadership? Formal and Informal Leadership OB in the Real World

Management Versus Leadership Basic Leadership Types Early Leadership Perspectives

Trait Leadership Perspective Behavioral Leadership Perspective Contingency Leadership Perspective Hersey and Blanchard’s Situational Leadership Model House’s Path–Goal Theory Substitutes for Leadership Model

Contemporary Leadership Perspectives Leader–Member Exchange (LMX) Theory Transformational Leadership Charismatic Leadership

Examining the Evidence Follower-Centered Leadership Perspective

Power-Distributing Leadership Perspectives

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Empowering Leadership Shared Leadership Self-Leadership

Values-Based Leadership Perspectives Authentic Leadership Spiritual Leadership Servant Leadership Ethical Leadership

Cross-Cultural Leadership Leadership and Gender In Review Key Terms Thinking Critically About the Case of Langston Burrows Exercise 11.1 Exercise 11.2 Exercise 11.3 Case Study 11.1 Self-Assessment 11.1

Chapter 12. Influence, Power, Politics Power: Definition and Overview Basic Sources of Power

Organizational Power Personal Power

Using Power: Tactics for Influencing Others Consequences of Influence Tactics Organizational Politics

Organizational Factors Examining the Evidence

Individual Factors Possible Outcomes of Political Behavior

OB in the Real World In Review Key Terms Thinking Critically About the Case of Langston Burrows Exercise 12.1 Exercise 12.2 Exercise 12.3 Case Study 12.1 Self-Assessment 12.1

Chapter 13. Effective Communication The Role of Effective Communication in Influencing Others Types of Communication Channels

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OB in the Real World Barriers to Communication

Active Listening Examining the Evidence Communicating in Organizations Cross-Cultural Communication

Low-Context Versus High-Context Cultures Social Context Other Complicating Factors Overcoming Difficulties in Cross-Cultural Communication

In Review Key Terms Thinking Critically About the Case of Langston Burrows Exercise 13.1 Exercise 13.2 Exercise 13.3 Case Study 13.1 Self-Assessment 13.1

Part 5. Organizational Context Chapter 14. Organizational Culture

Characteristics of Organizational Culture Components of Culture

OB in the Real World The Competing Values Framework Dominant Culture, Subculture, Counterculture Strong and Weak Cultures

Artifacts of Organizational Culture Functions of Organizational Culture

External Adaptation Internal Integration Potential Dysfunctions of Culture

Types of Organizational Cultures Positive Organizational Culture Communal Culture Fragmented Culture Mercenary Culture Networked Cultures Ethical Culture Spiritual Culture

Examining the Evidence Shaping Organizational Culture

Influence of Founders and Top Management

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Selection Practices Socialization Methods Feldman’s Model of Organizational Socialization

In Review Key Terms Thinking Critically About the Case of Yolande Turner and Pioneering Health Exercise 14.1 Exercise 14.2 Exercise 14.3 Case Study 14.1 Self-Assessment 14.1

Chapter 15. Organizational Strategy Organizational Strategy OB in the Real World

Strategic Planning Process Levels of Strategy Competitive Advantage and Strategy Types Types of Strategies

Organizational Learning as a Strategic Process Acquiring Knowledge Distributing Knowledge Retaining Knowledge

Globalization Opportunities and Challenges

Adapting Organizational Practices Across Cultures Hofstede’s Dimensions Global Integration Versus Local Responsiveness Leadership Across Different Cultures

International Assignments and Career Development Culture Shock and Cultural Adaptation Stages of Cultural Adaptation Expatriate Failure Benefits and Costs of International Assignments

Examining the Evidence In Review Key Terms Thinking Critically About the Case of Yolande Turner and Pioneering Health Exercise 15.1 Exercise 15.2 Exercise 15.3

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Case Study 15.1 Self-Assessment 15.1

Chapter 16. Organizational Change and Development The Change Process

The DADA Syndrome OB in the Real World

Lewin’s Basic Change Model Lewin’s Force Field Analysis

Forces for Change External Forces for Change Internal Forces for Change

Resistance to Change Individual Sources for Resistance to Change Organizational Sources of Resistance to Change

Examining the Evidence Reducing Resistance to Change

Organizational Development Types of OD Change Interventions

Structural Interventions Task-Technology Interventions Sociotechnical Systems Redesign Quality of Worklife Interventions People-Focused Interventions

In Review Key Terms Thinking Critically About the Case of Yolande Turner and Pioneering Health Exercise 16.1 Exercise 16.2 Exercise 16.3 Case Study 16.1 Self-Assessment 16.1

Chapter 17. Organizational Structure, Design, and Technology Organizational Structure OB in the Real World Basic Organizing Concepts

Specialization and Division of Labor Departmentalization Chain of Command Span of Control Centralization and Decentralization

Examining the Evidence

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Mechanistic and Organic Models Formalization and Bureaucracy

Types of Organizational Structures Organizational Design Integrating Technology

Technology and Organizational Design Designing Technology

In Review Key Terms Thinking Critically About the Case of Yolande Turner and Pioneering Health Exercise 17.1 Exercise 17.2 Exercise 17.3 Case Study 17.1 Self-Assessment 17.1

Glossary Endnotes Self-Tests Name Index Subject Index

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Preface

Nikos Kazantzakis once wrote:

Ideal teachers are those who use themselves as bridges over which they invite their students to cross; then having facilitated their crossing, joyfully collapse, encouraging them to create bridges of their own.

Our goal as an author team was to write an organizational behavior (OB) textbook that really engaged students—not one that involved memorizing its content for the sole purpose of passing exams and then quickly forgetting whatever they had learned. We wanted to write a textbook that students could use well after the semester was over to help them actively learn and think critically in order to understand how people behave as they pursue their career goals. In other words, we wanted to help students “build bridges” to their goals and dreams. We hope we have achieved our goal in Organizational Behavior: A Critical- Thinking Approach for students in organizational behavior classes across the world.

In our 21st-century business world, organizational behavior has taken on a new significance. In an environment in which competition is fiercer than ever, it is people who act as differentiators in the workplace. In every aspect of business, people are the cornerstone of success. This is why it is so important to understand human behavior.

The following quote from Curt Coffman and Gabriela Gonzalez-Molina in Follow This Path: How the World’s Greatest Organizations Drive Growth by Unleashing Human Potential reinforces the importance of understanding human behavior in organizations:

The success of your organization doesn’t depend on your understanding of economics, or organizational development, or marketing. It depends, quite simply, on your understanding of human psychology: how each individual employee connects with your company and how each individual employee connects with your customers.

One of the earliest studies of organizational behavior was carried out at AT&T’s Western Electric Hawthorne plant by Harvard’s Elton Mayo in 1927. The principle findings of this study showed that when workers are given the opportunity to contribute their thinking and learning to workplace issues, their job performance improves. This finding is still relevant today. Studies in organizational behavior add to our understanding of the individuals working within all types of businesses, from corporate to entrepreneurial. Organizational Behavior: A Critical-Thinking Approach attempts to capture the body of knowledge that

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encompasses the organizational behavioral research into a book that is fun to read, captures the reader’s attention, and imparts the organizational behavioral knowledge in a way that promotes critical thinking.

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Our Vision

Organizational Behavior: A Critical-Thinking Approach is a textbook for college-level undergraduate students seeking insight into individual behavior, group behavior, organizational structure, and organizational processes through the lens of critical thinking.

Organizational behavior courses are defined by the following trends: larger course sizes, the need for continually changing content to stay relevant, and instructors working to make vast online resources meaningful to the student experience. The cumulative effect of these trends on instructors is a much more demanding environment for teaching and learning. In a quickly changing business environment, many books need a complete rewrite to be fully up-to-date. Even better, though, this is a new book—written from today’s perspective, with an eye to the near future. Our goal in writing this book is to bring to the classroom a fresh view of human behavior in organizations.

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What Makes Our Book Unique

Critical-thinking approach. Students learn to analyze behavior patterns and assess consequences to predictive paths. Managers make decisions that have delayed consequences on situations, with extraordinary complexity, yet predictable patterns of behavior. A student’s ability to make decisions that result in expected and desirable consequences should be the sole objective of all organizational behavior textbooks. Continuing case narratives. Students are associative thinkers and continuously seek multiple data points to connect into a constellation of meaning. People retain knowledge through meaningful narratives, which means that stories that illustrate richly textured situations are better for learning than listing brands and public figures in the chapters. Practical applications, self-assessments, experiential exercises, and additional pedagogical features make OB come to life and encourage students to engage with OB concepts in meaningful ways.

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A Critical-Thinking Approach

We believe that in today’s business world, organizational behavior is more important than ever. Companies are looking for employees and managers who have strong organizational behavior skills. Critical thinking, problem solving, and creativity are valuable and essential commodities. Critical thinking is an essential skill; managers use critical thinking to understand, explain, predict, and influence behavior in the workplace.

Our text provides a comprehensive overview of OB theories and processes with a strong emphasis on critical-thinking applications in order to equip students with the information and skills they need to thrive in organizations today.

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Why Critical Thinking Matters in OB

A critical thinker uses his or her intelligence, knowledge, and skills to question and carefully explore situations and to arrive at thoughtful conclusions based on evidence and reason. Someone thinking critically is able to get past biases and view situations from different perspectives to ultimately improve his or her understanding of the world.

Business leaders use critical thinking when making decisions, solving problems, gathering information, and asking questions. Time and again, research has shown the effectiveness of critical thinking in the workplace. In an article published in the journal Current Directions in Psychological Science, the authors report that cognitive ability tests, including critical- thinking tests “are among the strongest and most consistent predictors of performance across academic and work settings.”1

In Organizational Behavior: A Critical-Thinking Approach, we use the components and core skills of critical thinking to teach the many facets of organizational behavior to students. Adding critical thinking to these behaviors further enhances students’ abilities to strategically think as well as analyze and solve problems. By seeking first to understand the dynamics of human behavior, then sharing the knowledge learned, they will be able to build more successful relationships within their personal and professional lives.

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How Our Book Incorporates Critical Thinking

A lot of OB books claim to help students to develop their critical-thinking skills. What makes our book different? Our book incorporates critical thinking on every page. Instead of passively reading through each chapter, the student is asked to pause, reflect, and engage more critically with the content.

Chapter 1 explains the central role critical thinking plays in OB and introduces a five-step critical-thinking framework that students can apply to challenging scenarios, problems, decisions, and other issues. Thinking Critically questions tied to Bloom’s Taxonomy appear throughout each chapter. Bracketed notations identify which domain(s) of Bloom’s Taxonomy the question falls into: understand, apply, analyze, evaluate, and create. These questions don’t necessarily have a right or wrong answer but rather are designed to challenge students to think critically and achieve higher levels of learning. Examining the Evidence boxes highlight a recent seminal OB study from high- quality OB journals and discusses its practical applications in the business world. Critical-thinking questions at the end of each box allow students to see how research in academe applies to real-life settings. OB in the Real World boxes feature real-world anecdotes, quotes, and examples from seasoned business professionals who share their knowledge and experience with students by describing how they used OB to positively influence outcomes and achieve organizational success. Critical-thinking questions help students see how OB concepts impact real people and organizations.

These critical-thinking elements are perfect for assignments or class discussions and lively debate.

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Continuing Case Narratives

In order to support our balanced approach to research and practice, and our pedagogical commitment to critical thinking, Organizational Behavior: A Critical-Thinking Approach takes a new approach to the style of OB textbooks. We include all the concepts and key terms that are expected, but we do so in a context that aids instructors in showing how and why they are applied in real world situations, and in a style that ignites the imagination and sparks discussion.

Rather than a series of unrelated organizational snapshots that offer only a superficial understanding of OB content, we create rich, continuing case study narratives that illustrate the exciting and challenging complexities of the real world. Each of the main OB subdivisions is presented through business case narratives that span multiple chapters. These continuing case narratives serve two key purposes:

1. Provide fully imagined characters and relationships that reflect challenges and opportunities that managers encounter

2. Provide sufficiently rich contexts to practice critical-thinking skills in ways that mimic actual workplace dynamics. How do we ensure that these case narratives are consistent with top-tier research and the challenges that businesses are addressing in today’s economy?

For Parts 2–5 of the book, we develop a case representing an industry and featuring several managers in an organization. These continuing cases are inspired by real people and real events but fictionalized for the learning process. Chapters include a Back to the Case recap that summarizes the events of the previous chapter’s case narrative, making it easy for instructors to assign chapters out of order.

Following is a summary of each continuing case narrative in the text:

Chapters 2–4. The Case of Laura Pierce: Differences at the West Texas Regional Theatre

The narrative focuses on Laura Pierce, a newly employed marketing and development director at the financially struggling West Texas Regional Theatre (WTRT), and the challenges she faces in trying to overcome individual differences in order to help save the theatre. In Chapter 2, Laura meets her new colleagues and gets to know more about their different backgrounds and personalities. In Chapter 3, Laura introduces her ideas to drive business to WTRT but needs to navigate the attitude and behavior of the staff. In Chapter 4, Laura deals with the consequences of differing perceptions as she meets with the WTRT board members to discuss the theatre’s financial decline.

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Chapters 5–6. The Case of Katie O’Donnell: Motivating Staff at the Waterfront Grill

Katie O’Donnell is an MBA student who has been a server at the restaurant for the past two years and just accepted the job of assistant manager at the Waterfront Grill in upstate New York. She sees her promotion as an opportunity to identify and solve a number of problems she has experienced at the restaurant over the past two years. In Chapter 5, Katie focuses on addressing high turnover by suggesting different strategies to resolve problems and motivate staff at the Waterfront Grill. In Chapter 6, Katie starts to put some of these motivational concepts into practice with mixed results.

Chapters 7–10. The Case of Brian Stevens: Trouble at the Tractor Assembly Plant

HR Manager Brian Stevens has been working in a tractor-engine manufacturing plant in the Midwest. He recently received a promotion to plant manager at the company’s tractor assembly plant and reports directly to the president of the company, Hans Wagner. Over the course of the narrative, Brian faces challenges across different teams and departments and is forced to make some tough decisions. In Chapter 7, Brian discovers one of the main problems in the tractor assembly plant: the team in the purchasing department is underperforming and he must work with the team to resolve the issue. In Chapter 8, Brian faces an ethical dilemma when his boss, Hans Wagner, tries to convince Brian to accept his decision to make some unethical cost-cutting initiatives. In Chapter 9, Brian faces the challenge of creating innovative new machinery that will increase productivity. In Chapter 10, Brian must deal with some conflict when new competitors threaten the plant’s new product and use some negotiation strategies in order to resolve the conflict.

Chapters 11–13. The Case of Langston Burrows: Leadership Challenges

Langston Burrows is a recent college graduate with a bachelor’s degree in business administration who has been offered a place in the leadership development program (LDP) at a mid-sized regional bank. Langston sets out to determine his own leadership style. In Chapter 11, Langston begins a three-month rotational leadership position and gets to know the bank staff and experiment with different leadership styles. In Chapter 12, Langston learns about how different people wield power and influence and endures the unfair political behavior of a more senior colleague. In Chapter 13, Langston must overcome some communication barriers in order to find a new role within the bank.

Chapters 14–17. The Case of Yolande Turner: Pioneering

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Health Goes International

Pioneering Health is a small organization based outside Chicago and consisting of 300 people. Headed by founder and CEO Yolande Turner, a former pharmaceutical-product line manager, the company sells disease management strategies to other health …