Organizational behavior a practical problem solving approach

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organizational behavior

A PRACTICAL, PROBLEM-SOLVING APPROACH

DEVELOPING EFFECTIVE PROBLEM SOLVERS TODAY, VALUED LEADERS TOMORROW

DEVELOPING EFFECTIVE PROBLEM SOLVERS TODAY, VALUED LEADERS TOMORROW

2e ANGELO KINICKI MEL FUGATE

Angelo Kinicki Arizona State University

Mel Fugate University of South Australia

A Practical, Problem-Solving Approach Second Edition

Organizational Behavior

ORGANIZATIONAL BEHAVIOR: A PRACTICAL, PROBLEM-SOLVING APPROACH, SECOND EDITION

Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2018 by McGraw-Hill Education. All rights reserved. Printed in the United States of America. Previous edition © 2016. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of McGraw-Hill Education, including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning.

Some ancillaries, including electronic and print components, may not be available to customers outside the United States.

This book is printed on acid-free paper.

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ISBN 978-1-259-73264-5 MHID 1-259-73264-9 ISBN 978-1-259-91546-8 (Instructor’s Edition) MHID 1-259-91546-8

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All credits appearing on page or are considered to be an extension of the copyright page.

Library of Congress Cataloging-in-Publication Data Names: Kinicki, Angelo, author. | Fugate, Mel, author. Title: Organizational behavior : a practical, problem-solving approach / Angelo Kinicki, Arizona State University, Mel Fugate, Southern Methodist University. Description: Second edition. | New York, NY : McGraw-Hill Education, [2018] Identifiers: LCCN 2016046078 | ISBN 9781259732645 (alk. paper) | ISBN 1259732649 (alk. paper) Subjects: LCSH: Organizational behavior. Classification: LCC HD58.7 .K52638 2018 | DDC 658—dc23 LC record available at https://lccn.loc.gov/2016046078

The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a website does not indicate an endorsement by the authors or McGraw-Hill Education, and McGraw-Hill Education does not guarantee the accuracy of the information presented at these sites.

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DEDICATION

To Dr. Doo-Sang Cho, a true friend, my favorite golf partner, and a great medical doctor. I treasure our friendship.

— Angelo

I dedicate this work to the many outstanding students in my career who have made the teaching aspect of my job so rewarding. It is the high-caliber students and professionals, like many of you, who motivate me to always raise my own game. I also want to thank my sweet wife, Donna, and my wonderful family. They support me in all that I do.

— Mel

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journals. His current research interests focus on the dynamic relationships among leader- ship; organizational culture; organizational change; and individual, group, and organiza- tional performance. Angelo has published over 95 articles in a variety of academic journals and proceedings and is co-author of eight textbooks (31 including revisions) that are used by hundreds of universities around the world. Several of his books have been trans- lated into multiple languages, and two of his books were awarded revisions of the year by McGraw-Hill.

Angelo is a busy international consultant and is a principal at Kinicki and Associates, Inc., a management consulting firm that works with top management teams to create organi- zational change aimed at increasing organiza- tional effectiveness and profitability. He has worked with many Fortune 500 firms as well as numerous entrepreneurial organizations in diverse industries. His expertise includes facilitating strategic/operational planning sessions, diagnosing the causes of organiza- tional and work-unit problems, conducting organizational culture interventions, imple- menting performance management systems, designing and implementing performance appraisal systems, developing and administer- ing surveys to assess employee attitudes, and leading management/executive education programs. He developed a 3600 leadership feedback instrument called the Performance Management Leadership Survey (PMLS) that is used by companies throughout the world.

Angelo and his wife of 35 years, Joyce, have enjoyed living in the beautiful Arizona desert for 34 years. They are both natives of Cleveland, Ohio. They enjoy traveling, hiking, and spending time in the White Mountains with Gracie, their adorable golden retriever. Angelo also has a passion for golfing.

Angelo Kinicki is an emeritus professor of management and held the Weatherup/Overby Chair in Leadership from 2005 to 2015 at the W.P. Carey School of Business at Arizona State University. He joined the faculty in 1982, the year he received his doctorate in business administration from Kent State University. He was inducted into the W.P. Carey Faculty Hall of Fame in 2016.

Angelo is the recipient of six teaching awards from Arizona State University, where he taught in its nationally ranked MBA and PhD programs. He also received several research awards and was selected to serve on the editorial review boards for four scholarly

Courtesy of Angelo Kinicki

vABOUT THE AUTHORS

Mel Fugate is an associate professor of management in the Center for Workplace Excellence at the University of South Australia. He teaches executive, MBA, and postgraduate courses. He has won seven teaching awards across undergraduate and graduate levels. Prior to the University of South Australia he was on the faculty at the Cox School of Business at Southern Methodist University. He also has served as a visiting assistant professor of Organizational Behavior at Tulane University’s A.B. Freeman College of Business and the EM Lyon School of Manage- ment in Lyon, France. Before earning his PhD in Management from Arizona State University, Mel performed consulting services in marketing and business development and was a sales representative and manager in the

pharmaceutical industry. He also has a BS in engineering and business administration from Michigan State University.

Mel’s primary research interests involve employee reactions to organizational change and transitions at work. This includes but is not limited to downsizings, mergers and acquisi- tions, restructurings, and plant closings. Another research stream involves the develop- ment of a dispositional perspective of employ- ability and its implications for employee careers and behavior. Current interests also include the influence of leadership, as well as the influence of emotions at work, and organizational culture on performance and the influence of emotions on behavior at work. He has published in a number of premier management and applied psychology journals. His current consulting work includes many industries (e.g., health care, legal, energy, aged care and social services, information technology, and financial services) and aims to enhance individual and organizational performance by utilizing a variety of practical, research-based tools.

Professor Fugate’s research and comments have been featured in numerous media outlets: The Wall Street Journal, The New York Times, Financial Times, FastCompany, Dallas Morning News, CNN, Fox, ABC, and NBC.

Mel and his wife, Donna, are both very active and enjoy fitness, traveling, live music, and catering to their sweet and savage Jack Russell terrier, Mila.

Courtesy of Mel Fugate

NEW TO THE SECOND EDITION

Features In this new edition, we have better integrated the 3-Step Problem-Solving Approach throughout, as well as clarified its relationship to the Organizing Framework for Understanding and Applying OB, (formerly called the Integrative Framework). You will also see new boxed features in every chapter:

Connect In our continuing efforts to help students move from comprehension to application, and to ensure they see the personal relevance of OB, we have added these new application exercises to our already robust Connect offering:

• Implications for Me/Implications for Managers explains in direct terms practical applications of chapter content from the student’s perspective as an employee and as a manager.

• OB in Action illustrates OB concepts or theories in action in the real world, featuring well-known companies and individuals.

• Applying OB offers students “how-to” guidance on applying OB knowledge in professional and other arenas of their lives.

apply the 3-Step Problem-Solving Approach on an actual situation affecting a specific firm (Volkswagen). Because the case examines issues at the individual, group, and organizational levels of analysis at Volkswagen, it can be used in parts or as a comprehensive assignment or exam. All told, this activity presents students with a rich and practical example to apply their OB knowledge and problem-solving skills.

• iSeeIt Videos: Brief, contemporary introductions to key course concepts that often perplex students, this series will enhance your student-centered instruction by offering your students dynamic illustrations that guide them through the basics of core OB concepts such as motivation, leadership, socialization, and more. The idea behind the series is if a student came to your office and asked you to explain one of these topics in a few minutes, how might you explain it? Practical and applicable, consider using these resources before class as an introduction, during class to launch your lecture, or even after class as a summative assessment.

• Problem-Solving Application Case Analyses: All problem-solving application mini-cases and end-of-chapter cases are now assignable as case analyses in Connect. These exercises give students the opportunity to analyze a situation and to apply the 3-Step Problem-Solving Approach. Student knowledge and proficiency are assessed using high-level multiple-choice questions that focus on both the problem-solving approach and on the key topics of each chapter.

• Self-Assessments: Self-awareness is a fundamental aspect of professional and personal development. Our 90 researched-based self-assessments give students frequent opportunities to see how organizational behavioral concepts apply to them personally. New to this edition is structured feedback that explains how students should interpret their scores. This feedback is followed immediately by self-reflection quizzes that assess students’ understanding of the characteristics being measured and the action steps they may want to take for improvement.

• Cumulative Case: This capstone activity provides students the opportunity to

We are pleased to share these exciting updates and new additions to the second edition of Organizational Behavior!

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viiNEW TO THE SECOND EDITION

CHAPTER 1 • Clarified explanation of the problem-

solving approach, more accurately framing it as a 3-step versus a 3-stop approach.

• Clarified the purpose and function of the Organizing Framework for Understanding and Applying OB, adding a new section that summarizes the framework. Included a comprehensive application of the framework focusing on how to solve the problem of employee turnover.

• Refined and increased focus on the career implications of OB and the importance of self-awareness.

• Expanded and updated coverage of cheating and the importance of ethics for employees and employers, as well as added a new section on the ethics of applying for jobs.

• Expanded and refined treatment of person–situation distinction (instead of person–environment).

CHAPTER 2 • Restructured content on Schwartz’s

value theory. • Created new applications for putting

Ajzen’s theory of planned behavior into action.

• Included new research on outcomes associated with employee engagement.

• Provided new data on U.S. levels of job satisfaction.

• Updated statistics on telecommuting. • Added a new section on accounting/

financial performance and customer service/satisfaction as outcomes of job satisfaction.

CHAPTER 3 • Added new material related to proactivity

and entrepreneurship, including multiple new examples.

• Added new section on introversion, its prevalence, and how to thrive as an introvert at work.

• Expanded discussion and new treatment of personality testing at work, including reasons, prevalence, performance, technology and methods, and advice.

• Revised section on emotional intelligence (EI), including new Figure 3.5 that summarizes the relationships between EI and various individual differences and outcomes, and a take- away application on EI.

CHAPTER 4 • Added a new Section 4.1, “Person

Perception.” • Updated research on stereotypes. • Updated coverage of diversity, including

new discussion of assumptions about diversity, demographic statistics regarding workforce diversity, barriers to managing diversity, and how companies are responding to diversity challenges.

• Updated research on affirmative action. • Expanded discussion of LGBT to include

LGBTQ. • Provided new examples of how

companies are managing millenials. • Added a new subsection to Section 4.5

titled “Education Levels: Mismatch between Education and Organizational Needs.”

CHAPTER 5 • Provided a new illustration of extrinsic

motivation. • Added new examples to illustrate such

key theories as Maslow’s theory, acquired-needs theory, self- determination theory, equity theory.

• Updated research on equity and justice theories.

• Added new discussion on the role of goal setting in VW emissions scandal.

• Included a new example to illustrate application of the job characteristics model.

• Updated research on job design, job crafting, and ideals.

Chapters In each chapter we have refreshed examples, research, figures, tables, statistics, and photos, as well as streamlined design to ease navigation and improved readability. We have also largely replaced the topics in such popular features as Winning at Work, Legal/Ethical Challenges, Problem- Solving Application Mini-Cases, and Problem-Solving Application Cases. While the following list does not encompass all the updates and revisions, it does highlight some of the more notable changes.

viii NEW TO THE SECOND EDITION

CHAPTER 6 • Updated statistics related to negative

perceptions and flaws associated with performance management practices.

• Dramatically revised section on feedback: new coverage of why we don’t get and give more more feedback, the value of feedback, who seeks it, who doesn’t, and whether that matters, when to use positive versus negative feedback, and trends in feedback today.

• Expanded section on the practices and benefits of exit and stay interviews.

• Revised section on reward distribution criteria.

• Added new section on alternatives to money and promotions.

• Added new section pertaining to why rewards often fail to motivate, including a new Take-Away Application.

• Restructured section on pay for performance, including coverage of piece rate, commissions, aligning objectives and awards.

• Added new section on how to make pay for performance work.

CHAPTER 7 • New model in Section 7.1 to frame the

entire chapter, titled “A Framework of Positive OB.”

• Updated the section titled “Doing Well and Doing Good.”

• Added a new section on “positive emotions are contagious.”

• Added new material and research on mindfulness, including examples of applications of corporate mindfulness.

• Updated the section titled “Hope = Willpower + Waypower.”

• Added a new section on signature strengths.

• Deepened coverage of positive climates and added new examples of practices that promote positive climates.

CHAPTER 8 • Significantly revised content related to

roles and norms. • Added new section and material related

to punctuated equilibrium. • Added and updated material related to

different types of teams—projects teams,

work teams, cross-functional, self- managed, and virtual.

• Added a section on team interdependence.

• Revised content related to social loafing. • Significantly revised introduction to trust. • Completely revamped introduction to

team effectiveness. • Completely revised section related to

collaboration and team rewards, including a new table and how to reward teams.

• Dramatically revised sections related to self-managed and cross-functional teams.

• Updated and expanded treatment of virtual teams.

CHAPTER 9 • Revised section on selecting the right

communication medium, including new content related to media richness and situation complexity.

• Added a set of practical tips for improving nonverbal communication.

• Added a new brief explanation of the neuroscience explanation of defensiveness.

• Added a new section on empathy and its role in communication.

• Updated material on generational differences around the role of digital devices and communication expectations and norms.

• Completely revamped section on cost of social media with new statistics, implications, and examples.

• Added examples and figure related to crowdsourcing.

• Revised highly practical content related to use of e-mail and managing it productively.

• Expanded section and inserted new material related to social media and privacy at work.

• Added new material related to social media etiquette (cell-phone use) and videoconferencing.

• Substantially revised section related to crucial conversations, including a new Take-Away Application.

CHAPTER 10 • Added a new self-assessment opener

related to interpersonal conflict tendencies.

ixNEW TO THE SECOND EDITION

• Completely restructured Section 10.1 addressing functional/dysfunctional conflict, causes, escalation, and why people avoid conflict.

• Rewrote the section on why people avoid conflict.

• Substantially revised section on personality conflicts.

• Enhanced and updated section on psychological safety climate.

• Added new material on conflict spillover effects.

• Updated section on bullying and cyber bullying and harassment.

• Significantly updated section on work–family conflict, including examples of Sheryl Sandberg (Facebook) and Anne-Marie Slaughter (formerly with US State Department).

• Added section on when to avoid conflict.

• Rewrote section on alternative dispute resolution, including the benefits of these approaches and a new table on various forms.

• Drastically changed the section on negotiation to reflect more current approaches—position versus interest- based, including a new table and “how to apply” section.

CHAPTER 11 • Added a new section on Kahneman’s

two ways of thinking. • Added new data on use of heuristics by

physicians. • Added new examples of bounded

rationality, intuition, use of big data, analytical decision making, and creativity.

• Added new statistics about use of big data.

• Provided data on data analytic jobs and majors.

• Added new examples on group decision making.

• Added new and updated material on creativity, including examples on fostering creative behavior, discussion of person and situation factors affecting creativity, practical recommendations for increasing creativity, and the use of extrinsic rewards on creativity.

CHAPTER 12 • Revised and enhanced material related

to positive and negative legitimate power.

• Updated nearly all examples related to bases of power.

• Revised section on psychological empowerment at the team and organizational levels.

• Added new section on influence in virtual teams, including influence tactics particular to this context.

• Substantially restructured section on political tactics, including opening with a self-assessment, new sections on “When Politics Are Good” and “When Politics Are Bad.”

• Expanded explanation of blame and politics to include the implications for entrepreneurs.

• Added new section on using politics to tour advantage.

• Restructured and revised section on good impressions, including a new table for how to make a good first impression.

• Added new section on impression management and job interviews, including deception detection and interviewers impressing interviewees.

• Modified and refocused content related to apologies.

• Added new section on ethics and impression management.

CHAPTER 13 • Added new statistics on why leadership

is critical in today’s organizations. • Added new research and examples of

leadership prototypes. • Added new material on “global

mind-set.” • Updated research on leadership traits

and task and relational leadership. • Updated material on the four ways of

creating psychological empowerment, using Jeff Bezos as the example.

• Added new section on ethical leadership.

• Added new list of suggestions for dealing with a passive leader.

• Added new key-term material on all components of Fiedler’s theory.

NEW TO THE SECOND EDITIONx

• Revised material on transformational leadership, including updated research and new illustrations of the four key behaviors associated with transformational leadership.

• Updated research on transformational leadership and leader-member exchange.

• Added new section on humility.

CHAPTER 14 • Added new illustrations on the

importance of organizational culture. • Added illustrations on the four cultural

types in the competing values framework.

• Added new table summarizing meta-analytic research on organizational culture.

• Added practical lessons from organizational culture research.

• Added new section on subcultures. • Added examples for the 12 ways to

change organizational culture. • Included examples for the three stages

of socialization. • Added sections on the phases and

benefits of mentoring. • Added new section on how human and

social capital enhance the benefits of mentoring.

CHAPTER 15 • Added new tips for working virtually. • Updated research on learning

organizations. • Added discussion of how to improve

organizational learning. • Added illustrations of the seven types of

organizational structure.

• Added section on contingency design and internal alignment, which includes new material on contingency factors, the six organizational characteristics of internal alignment, and how to apply the material.

• Added new section on assessing organizational effectiveness, which includes new material on the balanced scorecard: a dashboard-based approach to measuring organizational effectiveness; strategy mapping: visual representation of the path to organizational effectiveness using Dr. Pepper Snapple Group as an example.

• Added a section on organizational innovation, which includes new material on approaches toward innovation, characteristics of an innovation system, four agility techniques, and office design.

CHAPTER 16 • Completely updated section on external

and internal forces for change, using new content and examples.

• Revamped an OB in Action feature related to Cisco Systems.

• Restructured and rewrote section on resistance to change, including new table on common pitfalls of change agents and OB in Action feature— “Should a New Leader Clean House?”

• Revised material on stress, which includes a refocus on job stress and updated content related to good and bad stress.

• Updated content on fatigue along with statistics and the problems associated with presenteeism.

• Added new closing section that pulls together topics of change and stress.

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∙ “I want a good job, one that I like and is fulfilling. How do I know which job and company are a good fit for me?”

∙ “I know that this job and company provide good opportunities for me, but what can I do to be sure I actually realize these opportunities?”

∙ “I can’t stand my job, but I need the money. Should I talk to my boss or just quit?”

∙ “I am taking a class with 50 percent of the grade due to teamwork. My team has four members and two of us are doing all the work. I’ve been talking to the team, but the two members still aren’t doing their share. I am at a loss for what to do.”

∙ “How do I negotiate a salary and benefits for my new job, or a raise for the one I have?”

Each of these scenarios presents a problem. We all are faced with problems every day, and our ability to solve problems can set us apart from others in our jobs and careers. In fact, surveys consistently show that problem solving is one of the skills most valued by employers. For this reason, we designed Organizational Behavior, 2e, to help students become more effective problem solvers. Students who are ef- fective problem solvers today become valued leaders tomorrow.

The second edition of Organizational Be- havior relies on three key strategies to help students use OB knowledge to solve problems: ∙ Consistent 3-Step Problem-Solving

Approach. ∙ Applied, practical features. ∙ User-centric design.

3-Step Problem-Solving Approach Given problem solving is one of the skills most sought by employers, we help students develop instead of hone this skill. We teach them to use a 3-Step Problem-Solving Approach— (1) define the problem, (2) identify the causes, and (3) implement a solution. This approach is introduced in Chapter One and used multiple

times in each subsequent chapter. To comple- ment the 3-Step Approach, we also developed the new Organizing Framework for Under- standing and Applying OB. This framework is used in two ways. First, it provides students a means for organizing OB concepts into three categories (inputs, processes, and outcomes) as they learn them. This facilitates student learning and shows how concepts relate to each other. Second, it is an important and com- plementary tool for problem solving. Problems are often defined in terms of outcomes in the Organizing Framework, and the causes are commonly found in the inputs and processes elements. Students use this framework in every chapter to solve problems confronted by real organizations and employees.

We provide many opportunities for students to practice using the 3-Step Problem-Solving Approach. Problem-Solving Application Mini- Cases are inserted throughout each chapter. These provide numerous opportunities for students to apply their OB knowledge and practice their problem solving skills to real companies and people. The longer Problem-Solving Application Case at the end of each chapter presents more complex and current business cases containing one or more problems that illustrate OB concepts in- cluded in a particular chapter. A version of the Organizing Framework is presented in each chapter and is populated with relevant con- cepts from that chapter, which students then use to define and solve problems presented in the various features. This capstone Cumulative Case activity provides students the opportu- nity to apply the 3-Step Problem-Solving Approach on an actual situation affecting a specific firm (Volkswagen).

We carry the 3-Step Problem-Solving Approach into Connect, McGraw-Hill’s market-leading digital platform, and provide students with numerous opportunities to observe how different decisions can lead to different outcomes. We also offer new criti- cal-thinking application exercises tied to the

xii PREFACE

questions. They provide an effective tool to assessing student’s ability to solve problems using OB concepts and theories. SmartBook is another key component. This adaptive and data-driven reading experience gives students ample opportunity to develop mastery of key learning objectives tied to core OB concepts, while also providing instructors real-time snapshots of student comprehension.

User-Centric Approach It is important for us to offer users, whether stu- dents or instructors, a tool that is easy to navi- gate, easy to digest, and exceptionally practical. We therefore have taken great care to create content, craft our writing, and include features that focus on the needs and interests of the user. To that end, Major Questions open the main sections of each chapter and immediately place students in a personal, practical learning mode. These questions introduce key concepts by ask- ing students to consider the practical value of the concepts for them personally.

We also present content in digestible chunks of text, with frequent opportunities to engage with or reflect on the material. The Winning at Work feature opens each chapter with a list of practical tips related to a highly relevant topic for work and/or school, such as negotiating a salary for a new job or a pay raise, or how to manage meetings more effec- tively. Self-Assessments in Connect allow students to evaluate personal characteristics related to OB concepts, as well as to reflect on their own characteristics and behavior. Take- Away Applications ask students to apply the material and concepts immediately after read- ing. What Did I Learn provides students with a review of the chapter’s key concepts, an invi- tation to answer the chapter’s opening Major Questions, and a summary of the Organizing Framework for a given chapter.

Connect Tabs give instructors the founda- tions for creating a Connect course that fits their individual teaching needs. A new Teach- ing Resource Manual offers a playbook for creating and delivering a discussion-based learning environment in which students practice and apply concepts in a more active manner. The extensively revised Test Bank now offers greater opportunity to assess students on OB concepts at a higher level. The updated Test Bank includes essay and scenario-based ques- tions to engage students’ problem-solving skills.

Problem-Solving Application boxes and Problem-Solving Application Cases, giving students additional practice with applying the 3-Step Approach. These activities are a com- bination of case analyses, video cases, and click-and-drag exercises.

Applied, Practical Approach The second edition repeatedly demonstrates the practical value of OB concepts in solving real-world problems in students’ professional and personal lives. New OB in Action boxes illustrate OB concepts or theories in action in the real world, featuring well-known compa- nies. New Applying OB boxes offer students “how-to” guidance on applying their knowl- edge in both their professional and personal lives. Appearing at the end of each chapter are new Implications boxes that explain to stu- dents the practical value of OB concepts—one for their personal use now (Implications for Me) and the other for managers (Implications for Managers).

Legal/Ethical Challenges ask students to choose from several proposed courses of action or invent their own to resolve a business situa- tion that falls into a gray area of ethics at work.

Connect provides a multitude of opportuni- ties for active practice and application of con- cepts learned during class or while completing assigned reading. For example, new to this edition are short problem-solving application mini cases that can be used as essay exam

“Focuses on the practical applications of OB versus only theory.”

Charla Fraley —Columbus State Community College

“The text uses a problem- solving approach framework to demonstrate OB and help students apply OB theories to real-life issues.”

Jennifer Malarski —Metropolitan State University

xiiiPREFACE

Developing Effective Problem Solvers Today, Valued Leaders Tomorrow Organizational Behavior, 2e, explicitly ad- dresses OB implications for students’ jobs and careers, showing how OB provides them with the higher-level soft skills employers seek, such as problem solving, critical thinking, leadership, and decision making. We strongly believe that applying OB theories and con- cepts provides tremendous value to students’ lives today and throughout their careers. The understanding and application of OB enhances student effectiveness at school and work, both today and tomorrow.

“The method used by Kinicki/ Fugate allows students to think about the concepts presented in a way that is relevant to their lives. This allows them to understand how these concepts relate to the ‘real world.’”

Gabriela Flores, University of Texas —El Paso

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xviiACKNOWLEDGMENTS

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We hope you enjoy this textbook. Best wishes for happiness, health, and success!

Angelo Kinicki Mel Fugate

Daniel F. Nehring Morehead State University Jeananne Nicholls Slippery Rock University Dr. Floyd Ormsbee Clarkson University John Pepper The University of Kansas Samuel Rabinowitz Rutgers University-Camden Jude A. Rathburn University of Wisconsin- Milwaukee Alicia J. Revely Miami University Katherine Robberson Southern Illinois University- Edwardsville David Ruderman University of Colorado Denver Frances McKee Ryan University of Nevada, Reno Gordon Bruce Schmidt Indiana University- Purdue University Fort Wayne Dr. Marina Sebastijanovic University of Houston Ravi Shanmugam University of Kansas Richard G. Sims, Lead Faculty Chair Business University of Phoenix Dr. Atul Teckchandani California State University Fullerton Mussie T. Tessema Winona State University Linda Thiede Thomas Bellevue University Mary L. Tucker Ohio University Wellington Williams, Jr. University of Phoenix Robert M. Wolter IUPUI School of Engineering and Technology

We also gratefully acknowledge these individuals for their contributions to the first edition:

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xviii

br ie

f c on

te nt

s PART ONE Individual Behavior 1

1 MAKING OB WORK FOR ME What Is OB and Why Is It Important? 2

2 VALUES AND ATTITUDES How Do They Affect Work-Related Outcomes? 44

3 INDIVIDUAL DIFFERENCES AND EMOTIONS How Does Who I Am Affect My Performance? 78

4 SOCIAL PERCEPTION AND MANAGING DIVERSITY Why Are These Topics Essential for Success? 122

5 FOUNDATIONS OF EMPLOYEE MOTIVATION How Can I Apply Motivation Theories? 160

6 PERFORMANCE MANAGEMENT How Can You Use Goals, Feedback, Rewards, and Positive Reinforcement to Boost Effectiveness? 200

7 POSITIVE ORGANIZATIONAL BEHAVIOR How Can I Flourish at School, Work, and Home? 250

PART TWO Groups 293

8 GROUPS AND TEAMS How Can Working with Others Increase Everybody’s Performance? 294

9 COMMUNICATION IN THE DIGITAL AGE How Can I Become a More Effective Communicator? 334

10 MANAGING CONFLICT AND NEGOTIATIONS How Can These Skills Give Me an Advantage? 376

11 DECISION MAKING AND CREATIVITY How Critical Is It to Master These Skills? 420

12 POWER, INFLUENCE, AND POLITICS How Can I Apply Power, Influence, and Politics to Increase My Effectiveness? 462

13 LEADERSHIP EFFECTIVENESS What Does It Take to Be Effective? 502

PART THREE Organizational Processes 543

14 ORGANIZATIONAL CULTURE, SOCIALIZATION, AND MENTORING How Can I Use These Concepts to Fit, Develop, and Perform? 544

15 ORGANIZATIONAL DESIGN, EFFECTIVENESS, AND INNOVATION How Can Understanding These Key Processes and Outcomes Help Me Succeed? 588

16 MANAGING CHANGE AND STRESS How Can You Apply OB and Show What You’ve Learned? 632

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xix

co nt

en ts

1 MAKING OB WORK FOR ME

What Is OB and Why Is It Important? 2

MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 2 WINNING AT WORK 3 WHAT’S AHEAD IN THIS CHAPTER 3

1.1 THE VALUE OF OB TO MY JOB AND CAREER 4 How OB Fits into My Curriculum and Influences My

Success 5 OB IN ACTION: Google Search: How Can We

Keep Talented Employees? 6 SELF-ASSESSMENT 1.1: How Strong Is My

Motivation to Manage? 7 Employers Want Both Hard and Soft Skills 8 How OB Fits into My Career 9

1.2 RIGHT VS. WRONG—ETHICS AND MY PERFORMANCE 12 Cheating 12 Ethical Lapses—Legality, Frequency, Causes, and

Solutions 13 OB IN ACTION: Wrong? Absolutely! Illegal?

Seemingly Not. 14 OB IN ACTION: The Whistle-Blower’s Dilemma 15 SELF-ASSESSMENT 1.2: Assessing My

Perspective on Ethics 19

1.3 APPLYING OB TO SOLVING PROBLEMS 21 A 3-Step Approach 21 Tools to Reinforce My Problem-Solving Skills 23 SELF-ASSESSMENT 1.3: Assessing My

Problem-Solving Potential 23

1.4 STRUCTURE AND RIGOR IN SOLVING PROBLEMS 24 The Person–Situation Distinction 24 PROBLEM-SOLVING APPLICATION: Technology: A

Situation Factor that Affects My Performance 25 Levels—Individual, Group/Team, and

Organization 27 Applying OB Concepts to Identify the Right

Problem 27

1.5 THE ORGANIZING FRAMEWORK FOR UNDERSTANDING AND APPLYING OB 28 A Basic Version of the Organizing Framework 28 Using the Organizing Framework for Problem

Solving 29 OB IN ACTION: Life Is Sweeter on Mars 30 Applied Approaches to Selecting a Solution 31 Basic Elements for Selecting an Effective

Solution 32

1.6 PREVIEW AND APPLICATION OF WHAT I WILL LEARN 33 The 3-Step Problem-Solving Approach 33 The Organizing Framework 33 Hypothetical Problem-Solving Scenario 35 Our Wishes for You 37

What Did I Learn? 38 PSAC: United Airlines: How Do We Get There from Here? 41 Legal/Ethical Challenge: To Tell or Not to Tell? 43

PART ONE Individual Behavior 1

xx CONTENTS

3 INDIVIDUAL DIFFERENCES AND EMOTIONS

How Does Who I Am Affect My Performance? 77

MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 77 WINNING AT WORK 79 WHAT’S AHEAD IN THIS CHAPTER 79

3.1 THE DIFFERENCES MATTER 80

3.2 INTELLIGENCES: THERE IS MORE TO THE STORY THAN IQ 82 Intelligence Matters . . . And We Have More Than We Think 82 Practical Implications 85 OB IN ACTION: Smarts and Money 86

3.3 PERSONALITY, OB, AND MY EFFECTIVENESS 87 There Is More to Personality Than Liking and Fit 87 The Big Five Personality Dimensions 88 SELF-ASSESSMENT 3.1: What Is My Big Five Personality

Profile? 89 Hail the Introverts 89 Proactive Personality 89 OB IN ACTION: How to Thrive as an Introvert 90 SELF-ASSESSMENT 3.2: How Proactive Am I? 91 Personality and Performance 92 Personality Testing at Work 93 APPLYING OB: Acing Employee Tests 93 There Is No “Ideal Employee” Personality 94

3.4 CORE SELF-EVALUATIONS: HOW MY EFFICACY, ESTEEM, LOCUS, AND STABILITY AFFECT MY PERFORMANCE 95 Self-Efficacy—“I Can Do That” 96 Self-Esteem—“Look in the Mirror” 98

Locus of Control: Who’s Responsible—Me or External Factors? 99 Emotional Stability 100 OB IN ACTION: Alphabet’s Financial Chief Avoided Pitfalls that

Stymied Others 101 Three Practical Considerations for Core Self-Evaluations 102 SELF-ASSESSMENT 3.3: How Positively Do I See Myself? 103

3.5 THE VALUE OF BEING EMOTIONALLY INTELLIGENT 104 What Is Emotional Intelligence? 104 SELF-ASSESSMENT 3.4: What Is Your Level of Emotional

Intelligence? 105 PROBLEM-SOLVING APPLICATION: “Some days you’re the

fire hydrant and some days you’re the dog.” 106 Benefits of EI 107

3.6 UNDERSTAND EMOTIONS TO INFLUENCE PERFORMANCE 109 Emotions—We All Have Them, but What Are They? 109 Emotions as Positive or Negative Reactions to Goal

Achievement 110 APPLYING OB: Do You Procrastinate? Blame Your

Emotions! 110 Besides Positive and Negative, Think Past vs. Future 111 How Can I Manage My Negative Emotions at Work? 111 OB IN ACTION: The Good and Bad of Anger at Work 112

What Did I Learn? 114 PSAC: Amazon to Competition: We Will Crush You! Amazon to Employees: We Will Churn You! 117 Legal/Ethical Challenge: Companies Shift Smoking Bans to Smoker Ban 119

2 VALUES AND ATTITUDES

How Do They Affect Work-Related Outcomes? 44

MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 44 WINNING AT WORK 45 WHAT’S AHEAD IN THIS CHAPTER 45

2.1 PERSONAL VALUES 46 Schwartz’s Value Theory 46 SELF-ASSESSMENT 2.1: What Are My Core Values? 49 The Dynamics of Values 49

2.2 PERSONAL ATTITUDES AND THEIR IMPACT ON BEHAVIOR AND OUTCOMES 50 OB IN ACTION: Hospitality Industry Uses Attitude Surveys to

Target Causes of Turnover 51 Personal Attitudes: They Represent Your Consistent Beliefs and

Feelings about Specific Things 51 Attitudes Affect Behavior via Intentions 53 PROBLEM-SOLVING APPLICATION: Southwest Pilots Stage

an Informational Picket. What Should Management Do? 54

2.3 KEY WORKPLACE ATTITUDES 56 Organizational Commitment 56 Employee Engagement 58 SELF-ASSESSMENT 2.2: To What Extent Am I Engaged in My

Studies? 60

OB IN ACTION: Companies Foster Employee Engagement in Different Ways 60

Perceived Organizational Support 61

2.4 THE CAUSES OF JOB SATISFACTION 62 SELF-ASSESSMENT 2.3: How Satisfied Am I with My Present

Job? 62 At a Glance: Five Predominant Models of Job Satisfaction 63 A Shorter Walk to Work 64

2.5 MAJOR CORRELATES AND CONSEQUENCES OF JOB SATISFACTION 66 Attitudinal Outcomes of Job Satisfaction 66 PROBLEM-SOLVING APPLICATION: What to Do About

Bullying 67 Behavioral Outcomes of Job Satisfaction 68 Organizational-Level Outcomes of Job Satisfaction 71

What Did I Learn? 72 PSAC: Employee Attitudes and Turnover Are Issues at Yahoo! 75 Legal/Ethical Challenge: What Should Management Do About an Abusive Supervisor? 77

xxiCONTENTS

5 FOUNDATIONS OF EMPLOYEE MOTIVATION

How Can I Apply Motivation Theories? 160

MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 160 WINNING AT WORK 161 WHAT’S AHEAD IN THIS CHAPTER 161

5.1 THE WHAT AND WHY OF MOTIVATION 162 Motivation: What Is It? 162 The Two Fundamental Perspectives on Motivation:

An Overview 163

5.2 CONTENT THEORIES OF MOTIVATION 164 McGregor’s Theory X and Theory Y 164 Maslow’s Need Hierarchy Theory: Five Levels of Needs 164 Acquired Needs Theory: Achievement, Affiliation,

and Power 165 SELF-ASSESSMENT 5.1: Assessing Your Acquired Needs? 166 Self-Determination Theory: Competence, Autonomy, and

Relatedness 168 Herzberg’s Motivator-Hygiene Theory: Two Ways to Improve

Satisfaction 169 PROBLEM-SOLVING APPLICATION: What’s Going on at the

Arizona Department of Child Safety 171

5.3 PROCESS THEORIES OF MOTIVATION 173 Equity/Justice Theory: Am I Being Treated Fairly? 173 SELF-ASSESSMENT 5.2: Measuring Perceived Interpersonal

Treatment 176 Expectancy Theory: Does My Effort Lead to Desired

Outcomes? 178

4 SOCIAL PERCEPTION AND MANAGING DIVERSITY

Why Are These Topics Essential for Success? 122

MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 122 WINNING AT WORK 124 WHAT’S AHEAD IN THIS CHAPTER 124

4.1 PERSON PERCEPTION 125 A Model of Person Perception 125 OB IN ACTION: How Perception of Apologies Differs in the

United States and Japan 128 Managerial Implications of Person Perception 129

4.2 STEREOTYPES 131 Stereotype Formation and Maintenance 131 Managerial Challenges and Recommendations 132

4.3 CAUSAL ATTRIBUTIONS 133 Kelley’s Model of Attribution 133 Attributional Tendencies 135 Managerial Application and Implications 135

4.4 DEFINING AND MANAGING DIVERSITY 136 Layers of Diversity 136 Affirmative Action vs. Managing Diversity 138

4.5 BUILDING THE BUSINESS CASE FOR MANAGING DIVERSITY 140 Business Rationale 140 OB IN ACTION: Companies Develop Products to Fit the

Laundry Habits of Men 140

Trends in Workforce Diversity 142 SELF-ASSESSMENT 4.1: What Are Your Attitudes Toward

Working with Older Employees 145

4.6 BARRIERS AND CHALLENGES TO MANAGING DIVERSITY 146 SELF-ASSESSMENT 4.2: Assessing an Organization’s Diversity

Climate 148

4.7 ORGANIZATIONAL PRACTICES USED TO EFFECTIVELY MANAGE DIVERSITY 149 Framework of Options 149 How Companies Are Responding to the Challenges of

Diversity 150 PROBLEM-SOLVING APPLICATION: 64-Year-Old Male

Sues Staples for Wrongful Termination and Age Discrimination 152

SELF-ASSESSMENT 4.3: How Does My Diversity Profile Affect My Relationships with Other People? 153

What Did I Learn? 154 PSAC: White, Male, and Asian: The Diversity Profile of Technology Companies 157 Legal/Ethical Challenge: Swastikas and Neonatal Care 159

PROBLEM-SOLVING APPLICATION: Corporate Boards Decide to Lower the Instrumentalities between CEO Performance and Pay 180

PROBLEM-SOLVING APPLICATION: A High School Principal Uses Principles of Expectancy Theory to Motivate Students 182

Goal-Setting Theory: How Can I Harness the Power of Goal Setting? 183

5.4 MOTIVATING EMPLOYEES THROUGH JOB DESIGN 185 Top-Down Approaches—Management Designs Your Job 186 OB IN ACTION: Job Swapping Is the Latest Application of Job

Rotation 187 Bottom-Up Approaches—You Design Your Own Job 190 SELF-ASSESSMENT 5.3: To What Extent Have I Used Job

Crafting? 191 Idiosyncratic Deals (I-Deals)—You Negotiate the Design

of Your Job 192 SELF-ASSESSMENT 5.4: Creating an I-Deal 192

What Did I Learn? 193 PSAC: Dan Price, CEO of Gravity Payments, Established a Minimum Salary of $70,000 for All Employees 196 Legal/Ethical Challenge: Should Senior Executives Receive Bonuses for Navigating a Company through Bankruptcy 198

xxii CONTENTS

7 POSITIVE ORGANIZATIONAL BEHAVIOR

How Can I Flourish at School, Work, and Home? 250

MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 250 WINNING AT WORK 252 WHAT’S AHEAD IN THIS CHAPTER 252

7.1 THE VALUE OF POSITIVE ORGANIZATIONAL BEHAVIOR 253 Two Scenarios—Which Do You Prefer? 253 A Framework of Positivity 254 The Benefits of Positive OB Extend beyond Good

Performance 255 PROBLEM-SOLVING APPLICATION: Whole Foods Market:

More than Profits and More than Organics 259

7.2 THE POWER OF POSITIVE EMOTIONS 260 Beyond Happy vs. Sad 260 Positive Emotions Are Contagious 261 How Much Positivity Is Enough? 263 SELF-ASSESSMENT 7.1: Learn Your Positivity Ratio? 265

7.3 FOSTERING MINDFULNESS 266 Mindlessness vs. Mindfulness 266 OB IN ACTION: Does the Use of Headphones Help Achieve

Mindfulness? 267 Inhibitors of Mindfulness 268 Benefits of Mindfulness 269

6 PERFORMANCE MANAGEMENT

How Can You Use Goals, Feedback, Rewards, and Positive Reinforcement to Boost Effectiveness? 200

MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 200 WINNING AT WORK 202 WHAT’S AHEAD IN THIS CHAPTER 202

6.1 PERFORMANCE MANAGEMENT PROCESSES 203 Effective Performance Management 203 Common Uses of Performance Management 204 PROBLEM-SOLVING APPLICATION: How Much Would You

Pay Fannie and Freddie? 205 What Goes Wrong with Performance Management 205 The Importance of Management and Leadership 206 OB IN ACTION: The Deloitte Way: “Snapshots” and

“Check-ins” 207

6.2 STEP 1: DEFINE PERFORMANCE—EXPECTATIONS AND SETTING GOALS 209 Do You Want to Perform or Learn? 209 Managing the Goal-Setting Process 210 Contingency Approach to Defining Performance and

Setting Goals 213

6.3 STEP 2: PERFORMANCE MONITORING AND EVALUATION 214 Monitoring Performance—Measure Goals Appropriately and

Accurately 215 OB IN ACTION: The Challenges Grow as Employee Monitoring

Becomes More Sophisticated and Pervasive 215 Evaluating Performance 217

6.4 STEP 3: PERFORMANCE REVIEW, FEEDBACK, AND COACHING 219 What Effective Feedback Is . . . and Is Not 219 The Value of Feedback 220 If Feedback Is So Helpful, Why Don’t We Get and Give More? 220 Two Functions of Feedback 221 Important Sources of Feedback—Including Those Often

Overlooked 221 OB IN ACTION: How Do You Spell Feedback and

Self-Improvement? Z-A-P-P-O-S! 223

Who Seeks Feedback, Who Doesn’t, and Does It Matter? 224 Your Perceptions Matter 225 SELF-ASSESSMENT 6.1: What Is My Desire for Performance

Feedback? 227 Feedback Do’s and Don’ts 227 Today’s Trends in Feedback 227 Coaching—Turning Feedback into Change 228

6.5 STEP 4: PROVIDING REWARDS AND OTHER CONSEQUENCES 229 Key Factors in Organizational Rewards 229 Types of Rewards 229 SELF-ASSESSMENT 6.2: What Rewards Do I Value

Most? 230 Distribution Criteria 231 Desired Outcomes of the Reward System 231 Be Sure You Get the Outcomes You Desire 232 Total and Alternative Rewards 233 OB IN ACTION: Foosball? No Thanks. Stock that Matters?

Sign Me Up! 234 Why Rewards Often Fail and How to Boost Their

Effectiveness 234 PROBLEM-SOLVING APPLICATION: Garbage . . . Not Just the

Work but the Outcomes Too 235 Pay for Performance 236 Making Pay for Performance Work 237

6.6 REINFORCEMENT AND CONSEQUENCES 238 The Law of Effect—Linking Consequences and Behaviors 238 Using Reinforcement to Condition Behavior 238 Contingent Consequences 239 Positive Reinforcement Schedules 240 Work Organizations Typically Rely on the Weakest Schedule 242

What Did I Learn? 244 PSAC: Why Are Some Companies Yanking Forced Ranking? 247 Legal/Ethical Challenge: Fined Billions, but Still Admired and Handsomely Rewarded 249

xxiiiCONTENTS

OB IN ACTION: Applications of Mindfulness 270 SELF-ASSESSMENT 7.2: What Is My Level of Mindfulness? 271 Practicing Mindfulness 271

7.4 DEVELOPING PSYCHOLOGICAL CAPITAL AND SIGNATURE STRENGTHS 273 Hope = Willpower + “Waypower” 273 Efficacy 274 Resilience 274 Optimism 275 OB IN ACTION: Life Is Good . . . Spread the Power of

Optimism 275 How I Can Develop My PsyCap 276 SELF-ASSESSMENT 7.3: What Is My Level of PsyCap? 277 Signature Strengths 277 SELF-ASSESSMENT 7.4: What Are My Signature Strengths? 278

7.5 CREATING A CLIMATE THAT FOSTERS POSITIVE ORGANIZATIONAL BEHAVIOR 279 Organizational Values 279 Organizational Practices 280 Virtuous Leadership 281

7.6 FLOURISHING: THE DESTINATION OF POSITIVE ORGANIZATIONAL BEHAVIOR 282 OB IN ACTION: Values-Based Investing

at Parnassus Fund 282 Positive Emotions 283 OB IN ACTION: Pirch Spreads Joy 284 Engagement 285 Relationships 285 Meaningfulness 285 Achievement 286

What Did I Learn? 287 PSAC: Does Forever 21 Foster Positivity? 290 Legal/Ethical Challenge: Does GPS Tracking of Employee Actions Foster a Positive Work Environment? 292

8 GROUPS AND TEAMS

How Can Working with Others Increase Everybody’s Performance? 294

MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 294 WINNING AT WORK 296 FOR YOU: WHAT’S AHEAD IN THIS CHAPTER 296

8.1 GROUP CHARACTERISTICS 297 Formal and Informal Groups 298 Roles and Norms: The Social Building Blocks for Group and

Organizational Behavior 299 SELF-ASSESSMENT 8.1: Group and Team Role Preference

Scale 302

8.2 THE GROUP DEVELOPMENT PROCESS 304 Tuckman’s Five-Stage Model of Group Development 304 Punctuated Equilibrium 306

8.3 TEAMS AND THE POWER OF COMMON PURPOSE 307 A Team Is More Than Just a Group 307 SELF-ASSESSMENT 8.2: Is This a Mature Work Group or a

Team? 308 OB IN ACTION: Team Building Is an Important Part of Talent

Management 308 Being a Team Player Instead of a Free Rider 309 SELF-ASSESSMENT 8.3: Evaluate Your Team Member

Effectiveness 310 Types of Teams 311

OB IN ACTION: The Art of the Self-Managing Team 312

Virtual Teams 313 Team Interdependence 315

8.4 TRUST BUILDING AND REPAIR—ESSENTIAL TOOLS FOR SUCCESS 317 Three Forms of Trust 318 Building Trust 319 SELF-ASSESSMENT 8.4: How Much Do You Trust

Another? 319 Repairing Trust 320

8.5 KEYS TO TEAM EFFECTIVENESS 321 Characteristics of High-Performing Teams 321 The 3 Cs of Effective Teams 321 Collaboration and Team Rewards 323 PROBLEM-SOLVING APPLICATION: Together,

Hospitals Combat a Common Foe 324 OB IN ACTION: Exemplary Teamwork at NASA 325

What Did I Learn? 327 PSPAC: Optimizing Team Performance at Google 320 Legal/Ethical Challenge: When Would You Fire the Coach? The President? 332

PART TWO Groups 293

xxiv CONTENTS

10 MANAGING CONFLICT AND NEGOTIATIONS

How Can These Skills Give Me an Advantage? 376

MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 376 WINNING AT WORK 378 WHAT’S AHEAD IN THIS CHAPTER 378

10.1 A CONTEMPORARY VIEW OF CONFLICT 379 SELF-ASSESSMENT 10.1: Interpersonal Conflict Tendencies 379 Conflict Is Everywhere and It Matters 379 A Modern View of Conflict 380 A Conflict Continuum 380 Functional vs. Dysfunctional Conflict 380 Common Causes of Conflict 381 Escalation of Conflict 381 OB IN ACTION: First a Question, Then a Major Altercation 382 Why People Avoid Conflict 382 Desired Outcomes of Conflict Management 384

10.2 CONVENTIONAL FORMS OF CONFLICT 385 Personality Conflicts 385 How to Deal with Personality Conflicts 386 OB IN ACTION: The CEO Who Planned a “Food Fight” 386 PROBLEM-SOLVING APPLICATION: Butt Your Heads Together

and Fix the Problem 387 Intergroup Conflict 388 How to Handle Intergroup Conflict 389 SELF-ASSESSMENT 10.2: Psychological Safety Climate 391

10.3 FORMS OF CONFLICT INTENSIFIED BY TECHNOLOGY 392 Work–Family Conflict 392 SELF-ASSESSMENT 10.3: School–Non-School Conflict 393 OB IN ACTION: At United Shore Financial—Give Me Only 40 or

You’re Fired 394 Incivility—Treating Others Poorly Has Real Costs 396 SELF-ASSESSMENT 10.4: Bullying Scale—Target and

Perpetrator 399

10.4 EFFECTIVELY MANAGING CONFLICT 400 Programming Functional Conflict 400 Conflict-Handling Styles 402 SELF-ASSESSMENT 10.5: Preferred Conflict-Handling

Style 403 Third-Party Interventions: Alternative Dispute Resolution 405

10.5 NEGOTIATION 407 Two Basic Types of Negotiation 407 Emotions and Negotiations 409 OB IN ACTION: Take It from an FBI International Hostage

Negotiator 410 Ethics and Negotiations 411

What Did I Learn? 413 PSAC: What About McDonald’s Other Customers? 416 Legal/Ethical Challenge: Arbitration and a Snowball’s Chance 418

9 COMMUNICATION IN THE DIGITAL AGE

How Can I Become a More Effective Communicator? 334

MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 334 WINNING AT WORK 336 WHAT’S AHEAD IN THIS CHAPTER 336

9.1 BASIC DIMENSIONS OF THE COMMUNICATION PROCESS 337 Defining Communication 337 How the Communication Process Works 338 OB IN ACTION: The Priceline Group Works Hard to Avoid

Noise with Its Global Customers 339 Selecting the Right Medium 340

9.2 COMMUNICATION COMPETENCE 342 SELF-ASSESSMENT 9.1: Assessing Your Communication

Competence 342 Sources of Nonverbal Communication 342 Listening 344 SELF-ASSESSMENT 9.2: Assessing Your Listening Style 345 Nondefensive Communication 345 Connecting with Others via Empathy 347 OB IN ACTION: Ford Designs Products by Using Empathy 347

9.3 GENDER, GENERATIONS, AND COMMUNICATION 348 Communication Patterns between Women and Men 348 Generational Differences in Communication 349 Improving Communications between the Sexes and

Generations 350

9.4 SOCIAL MEDIA AND OB 351 Social Media and Increased Productivity 352 OB IN ACTION: Expanding Organizational Boundaries with

Crowdsourcing at GE, Lego, and YOU 354 Costs of Social Media 355 PROBLEM-SOLVING APPLICATION: A Very Expensive

Fantasy 355 Make E-mail Your Friend, Not Your Foe 356 Social Media Concerns and Remedies—What Companies and

You Can Do 357 SELF-ASSESSMENT 9.3: Assessing Social Media

Readiness 358 OB IN ACTION: Coca-Cola’s Online Social Media

Principles 360

9.5 COMMUNICATION SKILLS TO BOOST YOUR EFFECTIVENESS 363 Presenting—Do You Give Reports or Do You Tell Stories? 363 Crucial Conversations 366 Managing Up 368

What Did I Learn? 370 PSAC: What Can You Say About Your Employer on Social Media? Whatever You Want, Maybe 373 Legal/Ethical Challenge: Should Employers Monitor Employees’ Social Media Activity? 375

xxvCONTENTS

11 DECISION MAKING AND CREATIVITY

How Critical Is It to Master These Skills? 420

MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 420 WINNING AT WORK 422 WHAT’S AHEAD IN THIS CHAPTER 422

11.1 RATIONAL AND NONRATIONAL MODELS OF DECISION MAKING 423 Two Ways of Thinking 423 Rational Decision Making: Managers Make Logical and Optimal

Decisions 424 OB IN ACTION: Northwestern University Helps Students Deal

with Bounded Rationality while Solving Problems 426 Nonrational Models of Decision Making: Decision Making Does

Not Follow an Orderly Process 427 SELF-ASSESSMENT 11.1: Assessing Your Intuition 430

11.2 DECISION-MAKING BIASES: RULES OF THUMB OR “HEURISTICS” 431 PROBLEM-SOLVING APPLICATION: Heuristics Partly to Blame

for BP Oil Spill 432

11.3 EVIDENCE-BASED DECISION MAKING 435 Using Evidence to Make Decisions 436 Big Data: The Next Frontier in Evidence-Based

Decision Making 437 PROBLEM-SOLVING APPLICATION: Kroger Uses Big Data

to Improve Customer Service and Profits 438

11.4 FOUR DECISION-MAKING STYLES 439 Value Orientation and Tolerance for Ambiguity 439 The Directive Style: Action-Oriented Decision Makers Who

Focus on Facts 439 The Analytical Style: Careful and Slow Decision Makers Who

Like Lots of Information 440 The Conceptual Style: Intuitive Decision Makers Who Involve

Others in Long-Term Thinking 441