Organizational behavior emerging knowledge and practice for the real world

Organizational Behavior

McShane | Von Glinow

fifth edition

emerging knowledge and practice for the real world

O rg

anizatio nal B

ehavio r

ISBN 978-0-07-338123-7 MHID 0-07-338123-3

www.mhhe.com

E A N

em erg

ing kno

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p ractice fo

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fifth edition

McShane

Von Glinow

In their new Fifth Edition, McShane and Von Glinow continue the trailblazing innovations that made previous editions of Organizational Behavior recognized and adopted by the new generation of organizational behavior (OB) instructors.

McShane and Von Glinow 5e is acclaimed for: Readability, presentation of current knowledge »

Strong International/Global orientation »

Contemporary Theory Foundation (without the jargon) »

Active Learning and Critical Thinking Support »

Textbook’s philosophy-OB knowledge is for everyone, not just traditional managers. »

The reality is that everyone needs OB knowledge to successfully thrive in and around organizations, from sales representatives to production employees to physicians. The authors’ ability to engage students by introducing cutting-edge OB topics while providing relevancy to OB concepts through the ‘linking theory with reality’ approach, is the reason OB 5e remains unparalleled in its ability to engage students.

Delivering what we’ve come to expect from this exceptional author team, McShane/Von Glinow 5e helps everyone make sense of OB, and provides the conceptual tools to work more effectively in the workplace.

To learn more, visit www.mhhe.com/mcshane5e

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Organizational Behavior

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Emerging Knowledge and Practice for the Real World

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Organizational Behavior Steven L. McShane

The University of Western Australia

Mary Ann Von Glinow Florida International University

5th Edition

Boston Burr Ridge, IL Dubuque, IA New York San Francisco St. Louis Bangkok Bogotá Caracas Kuala Lumpur Lisbon London Madrid Mexico City Milan Montreal New Delhi Santiago Seoul Singapore Sydney Taipei Toronto

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ORGANIZATIONAL BEHAVIOR: EMERGING KNOWLEDGE AND PRACTICE FOR THE REAL WORLD

Published by McGraw-Hill/Irwin, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY, 10020. Copyright © 2010 , 2008 , 2005 , 2003 , 2000 by The McGraw-Hill Companies, Inc. All rights reserved. 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 The McGraw-Hill Companies, Inc., 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 978-0-07-338123-7 MHID 0-07-338123-3

Vice president and editor-in-chief: Brent Gordon Publisher: Paul Ducham Executive editor: John Weimeister Senior development editor: Christine Scheid Marketing manager: Natalie Zook Lead project manager: Christine A. Vaughan Production supervisor: Gina Hangos Senior photo research coordinator: Lori Kramer Photo researcher: Jennifer Blankenship Lead media project manager: Brian Nacik Cover and interior design: Pam Verros/pvdesign Cover image: ©Veer Typeface: 10/12 Berthold Baskerville Compositor: Aptara®, Inc. Printer: R. R. Donnelley

Library of Congress Cataloging-in-Publication Data McShane, Steven Lattimore. Organizational behavior : emerging knowledge and practice for the real world / Steven L. McShane, Mary Ann Von Glinow. — 5th ed. p. cm. Includes bibliographical references and index. ISBN-13: 978-0-07-338123-7 (alk. paper) ISBN-10: 0-07-338123-3 (alk. paper) 1. Organizational behavior. I. Von Glinow, Mary Ann Young, 1949- II. Title. HD58.7.M42 2010 658—dc22 2009005753

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http://www.mhhe.com
about the authors Steven L. McShane

Steven L. McShane is Pro- fessor of Management in the Business School at the University of Western Australia (UWA), where he receives high teaching ratings from students in Perth, Singapore, Manila, and other cities where UWA offers its programs. He is also an Honorary Professor at Universiti Tunku Abdul Rahman (UTAR) in Malaysia and

previously taught in the business faculties at Simon Fraser University and Queen’s University in Canada. Steve has conducted executive programs with Nokia, TÜV-SÜD, Wesfarmers Group, Main Roads WA, McGraw-Hill, ALCOA World Alumina Australia, and many other organi- zations. He is also a popular visiting speaker, having given presentations to faculty and students in almost a dozen countries over the past four years. Steve earned his Ph.D. from Michigan State University in organizational behavior, human resource management, and labor relations. He also holds a Master of Industrial Relations from the University of Toronto, and an under- graduate degree from Queen’s University in Canada. Steve has served as President of the Administrative Sciences Association of Canada (the Canadian equivalent of the Academy of Management) and Director of Graduate Pro- grams in the business faculty at Simon Fraser University. Along with coauthoring Organizational Behavior, Fifth Edition, Steve coauthors with Mary Ann Von Glinow on Organizational Behavior: Essentials, Second Edition (2009). He is also the coauthor with Sandra Steen (University of Regina) of Canadian Organizational Behaviour, Seventh Edition (2009), with Tony Travaglione (Curtin University) of Organisational Behaviour on the Pacific Rim, Second Edi- tion (2007), and with Charles Hill (University of Washington) of Principles of Management, First Edition (2008). Steve is also coauthor of Indian, Chinese, and Taiwanese editions or translations of his OB book. Steve has published several dozen articles and conference papers on workplace values, training transfer, organizational learning, exit-voice-loyalty, employee socialization, wrongful dismissal, media bias in business magazines, and other diverse topics. Steve enjoys spending his leisure time swimming, body board surfing, canoeing, skiing, and traveling with his wife and two daughters.

Mary Ann Von Glinow

Dr. Von Glinow is Director of the Center for Interna- tional Business Education and Research (CIBER) and is Research Professor of Management and Inter- national Business at Florida International University. She also is the 2006 Vice President of the Academy of International Business (AIB) and an editor of JIBS. Previously on the Marshall School faculty of

the University of Southern California, she has an MBA and Ph.D. in Management Science from The Ohio State Univer- sity. Dr. Von Glinow was the 1994–95 President of the Acad- emy of Management, the world’s largest association of academicians in management, and is a Fellow of the Academy and the Pan-Pacific Business Association. She sits on eleven editorial review boards and numerous international panels. She teaches in executive programs in Latin America, Central America, the Caribbean region, Asia, and the U.S. Dr. Von Glinow has authored over 100 journal articles and 11 books. Her most recent books include Managing Multi- national Teams (Elsevier, 2005) and Organizational Learning Capability (Oxford University Press, 1999; in Chinese and Spanish translation), which won a Gold Book Award from the Ministry of Economic Affairs in Taiwan in 2002. She has also coauthored the popular Organizational Behavior, Fifth Edition textbook and Organizational Behavior: Essentials, Second Edition (McGraw-Hill/Irwin, 2009). She heads an international consortium of researchers delving into “Best International Human Resource Management Practices,” and her research in this arena won an award from the American Society for Competitiveness’ Board of Trustees. She also received an NSF grant to study globally distributed work. Dr. Von Glinow is the 2005 Academy of Management recipient of the Distinguished Service Award, one of the Academy’s three highest honors bestowed. Mary Ann consults to a number of domestic and multi- national enterprises, and serves as a mayoral appointee to the Shanghai Institute of Human Resources in China. Since 1989, she has been a consultant in General Electric’s “Work- out” and “Change Acceleration Program” including “Coach- ing to Management.” Her clients have included Asia Development Bank, American Express, Diageo, Knight- Ridder, Burger King, Pillsbury, Westinghouse, Southern California Edison, The Aetna, State of Florida, Kaiser Per- manente, TRW, Rockwell Int’l, Motorola, N.Y. Life, Amoco, Lucent, and Joe’s Stone Crabs, to name a few. She is on the Board of Friends of WLRN, Fielding University, Friends of Bay Oaks, Pan-Pacific Business Association, and Animal Al- liance in Los Angeles. She is actively involved in several animal welfare organizations and received the 1996 Hu- manitarian Award of the Year from Miami’s Adopt-a-Pet.

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Dedicated with love and devotion to Donna, and to our wonderful daughters, Bryton and Madison — S.L.M.

Dedicated to Zack, Emma, and Googun! —M.A.V.G.

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Preface xvi

Glossary 525

References 531

Photo Credits 589

Organization Index 591

Name Index 595

Subject Index 616

URL Index 633

PART 1 Introduction 1

Chapter 1 Introduction to the Field of Organizational Behavior 2

PART 2 Individual Behavior and Processes 31 Chapter 2 Individual Behavior, Personality, and Values 32

Chapter 3 Perception and Learning in Organizations 66

Chapter 4 Workplace Emotions, Attitudes, and Stress 96

Chapter 5 Foundations of Employee Motivation 130

Chapter 6 Applied Performance Practices 164

Chapter 7 Decision Making and Creativity 196

PART 3 Team Processes 231 Chapter 8 Team Dynamics 232

Chapter 9 Communicating in Teams and Organizations 268

Chapter 10 Power and Influence in the Workplace 298

Chapter 11 Conflict and Negotiation in the Workplace 326

Chapter 12 Leadership in Organizational Settings 358

PART 4 Organizational Processes 383 Chapter 13 Organizational Structure 384

Chapter 14 Organizational Culture 414

Chapter 15 Organizational Change 442

Additional Cases 469 Case 1: A Mir Kiss? 469

Case 2: Arctic Mining Consultants 471 Case 3: Big Screen’s Big Failure 473

Case 4: Bridging the Two Worlds—The Organizational Dilemma 478 Case 5: Fran Hayden Joins Dairy Engineering 479

Case 6: From Lippert-Johanson Incorporated to Fenway Waste Management 482 Case 7: Glengarry Regional Medical Center 484

Case 8: High Noon at Alpha Mills 488 Case 9: Keeping Suzanne Chalmers 490

Case 10: Northwest Canadian Forest Products Limited 492 Case 11: Perfect Pizzeria 494

Case 12: Simmons Laboratories 495 Case 13: Treetop Forest Products 500

Video Cases 502 Appendix A

Theory Building and Systematic Research Methods 507

Appendix B

Scoring Keys for Self-Assessment Activities 514

brief contents

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contents Preface xvi

Part 1 Introduction 1

Chapter 1 Introduction to the Field of Organizational Behavior 2

The Field of Organizational Behavior 4

Organizational Behavior’s Foundations 5

Why Study Organizational Behavior? 5

Perspectives of Organizational Effectiveness 7

Open-Systems Perspective 7

Global Connections 1.1: Hospitals Take the Lean Journey to Efficiency 10

Organizational Learning Perspective 10

High-Performance Work Practices Perspective 12

Stakeholder Perspective 13

Types of Individual Behavior 16

Task Performance 17

Organizational Citizenship 17

Counterproductive Work Behaviors 18

Joining and Staying with the Organization 18

Maintaining Work Attendance 18

Contemporary Challenges for Organizations 19

Globalization 20

Increasing Workforce Diversity 20

Emerging Employment Relationships 22

Anchors of Organizational Behavior Knowledge 23

The Multidisciplinary Anchor 23

The Systematic Research Anchor 24

Part 2 Individual Behavior and Processes 31

Chapter 2 Individual Behavior, Personality, and Values 32

MARS Model of Individual Behavior and Performance 34

Employee Motivation 34

Ability 35

Role Perceptions 36

Situational Factors 37

Personality in Organizations 38

Personality Determinants: Nature versus Nurture 39

Five-Factor Model of Personality 39

Jungian Personality Theory and the Myers-Briggs Type Indicator 41

Caveats about Personality Testing in Organizations 42

The Contingency Anchor 24

The Multiple Levels of Analysis Anchor 24

Chapter Summary 25

Key Terms 25

Critical Thinking Questions 26

Case Study 1.1: Jersey Dairies, Inc. 26

Case Study 1.2: Working from Home—It’s in the Details 28

Team Exercise 1.3: Human Checkers 28

Class Exercise 1.4: Diagnosing Organizational Stakeholders 29

Self-Assessment 1.5: It All Makes Sense? 30

Self-Assessment 1.6: Is Telecommuting for You? 30

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Contents ix

Self-Concept: The “I” in Organizational Behavior 43

Self-Enhancement 44

Self-Verification 44

Self-Evaluation 44

Global Connections 2.1: Feeling Valued Adds Value at Johnson & Johnson 45

The Social Self 46

Self-Concept and Organizational Behavior 47

Values in the Workplace 47

Types of Values 48

Values and Individual Behavior 49

Value Congruence 49

Values across Cultures 50

Individualism and Collectivism 50

Power Distance 51

Uncertainty Avoidance 51

Achievement-Nurturing Orientation 52

Ethical Values and Behavior 52

Three Ethical Principles 53

Moral Intensity, Ethical Sensitivity, and Situational Influences 53

Supporting Ethical Behavior 54

Chapter Summary 56

Key Terms 56

Critical Thinking Questions 57

Case Study 2.1: SK Telecom Goes Egalitarian in a Hierarchical Society 57

Case Study 2.2: Pushing Paper Can Be Fun 58

Case Study 2.3: The Trouble with Business Ethics 59

Class Exercise 2.4: Test Your Knowledge of Personality 60

Team Exercise 2.5: Comparing Cultural Values 61

Team Exercise 2.6: Ethics Dilemma Vignettes 62

Self-Assessment 2.7: Are You Introverted or Extroverted? 63

Self-Assessment 2.8: What Are Your Dominant Values? 64

Self-Assessment 2.9: Individualism-Collectivism Scale 64

Self-Assessment 2.10: Estimating Your Locus of Control 64

Self-Assessment 2.11: Identifying Your General Self-Efficacy 64

Chapter 3 Perception and Learning in Organizations 66

The Perceptual Process 68

Perceptual Organization and Interpretation 70

Social Identity and Stereotyping 71

Stereotyping in Organizations 72

Global Connections 3.1: “Your Name Says Everything in France” 74 Attribution Theory 75

Attribution Errors 76

Self-Fulfilling Prophecy 76

Contingencies of Self-Fulfilling Prophecy 77

Other Perceptual Errors 78 Improving Perceptions 79

Awareness of Perceptual Biases 79

Improving Self-Awareness 79

Meaningful Interaction 81

Learning in Organizations 82

Behavior Modification: Learning through Reinforcement 82

Social Learning Theory: Learning by Observing 85

Learning through Experience 86

From Individual to Organizational Learning 87 Chapter Summary 88

Key Terms 89

Critical Thinking Questions 89

Case Study 3.1: Hy Dairies, Inc. 90

Case Study 3.2: How Failure Breeds Success 91

Class Exercise 3.3: The Learning Exercise 91

Web Exercise 3.4: Stereotyping in Corporate Annual Reports 92

Self-Assessment 3.5: How Much Perceptual Structure Do You Need? 92

Self-Assessment 3.6: Assessing Your Perspective Taking (Cognitive Empathy) 94

Self-Asssessment 3.7: Assessing Your Emotional Empathy 94

Chapter 4 Workplace Emotions, Attitudes, and Stress 96

Emotions in the Workplace 98

Types of Emotions 99

Emotions, Attitudes, and Behavior 100

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x Contents

Managing Emotions at Work 103

Emotional Display Norms across Cultures 103

Emotional Dissonance 104

Emotional Intelligence 105

Global Connections 4.1: GM Holden Revs Up Emotional Intelligence 107

Improving Emotional Intelligence 107

Job Satisfaction 108

Job Satisfaction and Work Behavior 109

The Ethics of Job Satisfaction 112

Organizational Commitment 112

Consequences of Organizational Commitment 112

Building Organizational Commitment 113

Work-Related Stress and Its Management 114

General Adaptation Syndrome 114

Consequences of Distress 115

Stressors: The Causes of Stress 116

Individual Differences in Stress 118

Managing Work-Related Stress 118

Chapter Summary 122

Key Terms 122

Critical Thinking Questions 123

Case Study 4.1: Riding the Emotional Roller Coaster 123

Case Study 4.2: Dispatches from the War on Stress 124

Class Exercise 4.3: Strength-Based Coaching 125

Team Exercise 4.4: Ranking Jobs on Their Emotional Labor 126

Team Exercise 4.5: Stage Fright! 126

Self-Assessment 4.6: School Commitment Scale 127

Self-Assessment 4.7: Dispositional Mood Scale 129

Self-Assessment 4.8: Work Addiction Risk Test 129

Self-Assessment 4.9: Perceived Stress Scale 129

Self-Assessment 4.10: Stress Coping Preference Scale 129

Chapter 5 Foundations of Employee Motivation 130

Employee Engagement 132

Employee Drives and Needs 134

Individual Differences in Needs 134

Maslow’s Needs Hierarchy Theory 135

Global Connections 5.1: Shining the Spotlight on Employee Recognition 137

What’s Wrong with Needs Hierarchy Models? 138

Learned Needs Theory 138

Four-Drive Theory 140

Expectancy Theory of Motivation 143

Expectancy Theory in Practice 144

Goal Setting and Feedback 145

Balanced Scorecard 147

Characteristics of Effective Feedback 148

Sources of Feedback 149

Evaluating Goal Setting and Feedback 151

Organizational Justice 151

Equity Theory 152

Procedural Justice 155

Chapter Summary 156

Key Terms 157

Critical-Thinking Questions 157

Case Study 5.1: Vêtements Ltée 158

Case Study 5.2: Motivating Staff When the Money Is Tight 159

Class Exercise 5.3: Needs Priority Exercise 159

Team Exercise 5.4: A Question of Feedback 160

Self-Assessment 5.5: Need-Strength Questionnaire 161

Self-Assessment 5.6: Measuring Your Growth-Need Strength 163

Self-Assessment 5.7: Your Equity Sensitivity 163

Chapter 6 Applied Performance Practices 164

The Meaning of Money in the Workplace 166

Financial Reward Practices 167

Membership- and Seniority-Based Rewards 167

Job Status–Based Rewards 168

Competency-Based Rewards 169

Performance-Based Rewards 170

Connections 6.1: Nucor Rewards the Team 171

Improving Reward Effectiveness 172

Connections 6.2: When Rewards Go Wrong 174

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Contents xi

Job Design Practices 175

Job Design and Work Efficiency 175

Job Design and Work Motivation 177

Job Design Practices That Motivate 180

Empowerment Practices 182

Supporting Empowerment 182

Self-Leadership Practices 183

Self-Leadership Strategies 184

Effectiveness of Self-Leadership 186

Self-Leadership Contingencies 186

Chapter Summary 187

Key Terms 188

Critical Thinking Questions 188

Case Study 6.1: The Regency Grand Hotel 188

Case Study 6.2: How to Make a Microserf Smile 190

Team Exercise 6.3: Is Student Work Enriched? 191

Self-Assessment 6.4: What Is Your Attitude toward Money? 193

Self-Assessment 6.5: Assessing Your Self-Leadership 194

Self-Assessment 6.6: Student Empowerment Scale 195

Chapter 7 Decision Making and Creativity 196

Rational Choice Paradigm of Decision Making 198

Problems with the Rational Choice Paradigm 200

Identifying Problems and Opportunities 200

Problems with Problem Identification 201

Identifying Problems and Opportunities More Effectively 202

Evaluating and Choosing Alternatives 203

Problems with Goals 203

Problems with Information Processing 204

Problems with Maximization 206

Evaluating Opportunities 206

Emotions and Making Choices 207

Intuition and Making Choices 208

Making Choices More Effectively 209

Implementing Decisions 209

Chapter 8 Team Dynamics 232

Teams and Informal Groups 234

Informal Groups 235

Advantages and Disadvantages of Teams 236

The Challenges of Teams 237

Part 3 Team Processes 231

Evaluating Decision Outcomes 210

Escalation of Commitment 210

Evaluating Decision Outcomes More Effectively 212

Employee Involvement in Decision Making 213

Benefits of Employee Involvement 213

Contingencies of Employee Involvement 214

Creativity 215

Characteristics of Creative People 216

Connections 7.1: Going for WowWow at Nottingham- Spirk 217

Organizational Conditions Supporting Creativity 218

Activities That Encourage Creativity 219

Chapter Summary 221

Key Terms 222

Critical Thinking Questions 222

Case Study 7.1: Employee Involvement Cases 223

Case Study 7.2: P&G’s Designer Thinking 224

Team Exercise 7.3: Where in the World Are We? 224

Team Exercise 7.4: Winter Survival Exercise 227

Class Exercise 7.5: The Hopping Orange 228

Class Exercise 7.6: Creativity Brainbusters 228

Self-Assessment 7.7: Measuring Your Creative Personality 229

Self-Assessment 7.8: Testing Your Creative Bench Strength 230

Self-Assessment 7.9: Decision-Making Style Inventory 230

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xii Contents

A Model of Team Effectiveness 238

Organizational and Team Environment 239

Team Design Elements 240

Task Characteristics 240

Team Size 242

Team Composition 242

Global Connections 8.1: Royal Dutch Shell Finds Team Players in Gourami 243

Team Processes 245

Team Development 245

Team Norms 249

Team Cohesion 250

Team Trust 251

Self-Directed Teams 253

Success Factors for Self-Directed Teams 254

Virtual Teams 255

Success Factors for Virtual Teams 255

Team Decision Making 256

Constraints on Team Decision Making 256

Team Structures to Improve Decision Making 258

Chapter Summary 260

Key Terms 261

Critical Thinking Questions 261

Case Study 8.1: The Shipping Industry Accounting Team 262

Case Study 8.2: Philanthropic Team Building 263

Case Study 8.3: Seagate’s Morale-athon 264

Team Exercise 8.4: Team Tower Power 265

Self-Assessment 8.5: What Team Roles Do You Prefer? 265

Self-Assessment 8.6: Are You a Team Player? 267

Self-Assessment 8.7: How Trusting Are You? 267

Chapter 9 Communicating in Teams and Organizations 268

The Importance of Communication 270

A Model of Communication 271

Influences on Effective Encoding and Decoding 271

Communication Channels 272

Computer-Mediated Communication 273

Connections 9.1: About-Face on Workplace E-mail 274

Nonverbal Communication 276

Choosing the Best Communication Channel 277

Social Acceptance 278

Media Richness 278

Communication Channels and Persuasion 281

Communication Barriers (Noise) 281

Information Overload 282

Cross-Cultural and Cross-Gender Communication 283

Nonverbal Differences across Cultures 284

Gender Differences in Communication 285

Improving Interpersonal Communication 285

Getting Your Message Across 285

Active Listening 286

Improving Communication throughout the Hierarchy 287

Workspace Design 287

Web-Based Organizational Communication 288

Direct Communication with Top Management 288

Communicating through the Grapevine 289

Grapevine Characteristics 289

Grapevine Benefits and Limitations 290

Chapter Summary 290

Key Terms 291

Critical Thinking Questions 291

Case Study 9.1: Communicating with the Millennials 292

Case Study 9.2: It’s All about the Face-to-Face 293

Team Exercise 9.3: Analyzing the Blogosphere 294

Team Exercise 9.4: Active Listening Exercise 294

Team Exercise 9.5: Cross-Cultural Communication Game 295

Self-Assessment 9.6: Active Listening Skills Inventory 296

Chapter 10 Power and Influence in the Workplace 298

The Meaning of Power 300

A Model of Power in Organizations 301

Sources of Power in Organizations 301

Legitimate Power 302

Reward Power 302

Coercive Power 303

Expert Power 303

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Contents xiii

Referent Power 303

Information and Power 304

Contingencies of Power 305

Substitutability 305

Centrality 306

Discretion 306

Visibility 307

Social Networking and Power 307