Organizational behavior emerging knowledge global reality 8th edition pdf

Reflect Of The Course

Reflect on what you have learned in class, what we have discussed, and what you have read. As of result of having taken this course have your views changed? How? Please explain.

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how well you articulate multiple connections between this learning experience and content from this course (and other related courses), past learning, life experiences and/or future goals.
The book is attached bellow:

Library of Congress Cataloging-in-Publication Data

Names: McShane, Steven Lattimore, author. | Von Glinow, Mary Ann Young, 1949- author. Title: Organizational behavior : emerging knowledge, global reality / Steven L. McShane, The University of Western Australia, Mary Ann Von Glinow, Florida International University. Description: Eighth edition. | New York, NY : McGraw-Hill Education, [2018] Identifiers: LCCN 2016047935 | ISBN 9781259562792 (alk. paper) | ISBN 1259562794 (alk. paper) Subjects: LCSH: Organizational behavior. Classification: LCC HD58.7 .M42 2018 | DDC 658—dc23 LC record available at https://lccn.loc.gov/2016047935

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.

www.mheducation.com

iii

about the authors

Steven L. McShane Steven L. McShane is adjunct professor at the Curtin Graduate School of Business (Australia) and the Peter B. Gustavson School of Business, University of Victoria (Canada). He previously held the positions of professor at Simon Fraser University Business School in Canada and professor of management at the University of Western Australia Business School. He currently teaches in the Shanghai Jiao Tong University IMBA program. Early in his career, Steve taught at Queen’s University in Canada. Steve has received awards for his teaching quality and innovation, and receives high ratings from students in Perth, Shanghai, Singapore, Manila, and other cities where he has taught. He is also a popular visiting speaker, having given dozens of invited talks and seminars in recent years to faculty and students in the United States, China, Canada, Malaysia, India, and other countries.

Steve earned his PhD from Michigan State University, where he specialized in organizational behavior and labor relations. He also holds a Master’s of Industrial Relations from the University of Toronto and an undergraduate degree from Queen’s University in Canada. Steve is a past president of the Administrative Sciences Asso- ciation of Canada (the Canadian equivalent of the Academy of Management) and served as director of graduate programs in Simon Fraser University’s business faculty. He has conducted executive programs with Nokia, TÜV-SÜD, Wesfarmers Group, Main Roads WA, McGraw-Hill, ALCOA World Alumina Australia, and many other organizations.

Along with coauthoring Organizational Behavior, Eighth Edition, Steve is lead coauthor of Canadian Organizational Behaviour, Ninth Edition (2016), Or- ganisational Behaviour: Asia Pacific, Fifth Edition (2016), and M: Organiza- tional Behavior, Third Edition (2016). He is also coauthor of editions or translations of his organizational behavior books in China, India, Quebec, Tai- wan, and Brazil. 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 hiking, swimming, body board surfing, canoeing, skiing, and traveling with his wife and two daughters.

Mary Ann Von Glinow Dr. Von Glinow is a Knight Ridder Eminent Scholar Chair in International Management at Florida International University and is senior editor for the Journal of International Business Studies (JIBS). She served as 2010 to 2012 president of the Academy of International Business (AIB) and the 1994–1995 president of the Academy of Management (AOM). Previously on the Marshall School faculty of the University of Southern California, she has an MBA and a PhD in management science from Ohio State University, and is a Fellow of the Academy of Management, the Academy of International Business, and the Pan-Pacific Business Association. She sits on 13 editorial review boards and

iv About the Authors

numerous international panels and teaches in executive programs in Latin America, Asia, and the United States.

Dr. Von Glinow has authored over 100 journal articles and 13 books, most of which have been translated into Chinese, Hindi, and Spanish. Her book on organizational learning capability won a Gold Book Award from the Ministry of Economic Affairs in Taiwan in 2002. She is the 2005 recipient of the Academy of Management’s Distinguished Service Award, one of the highest honors bestowed by the Academy.

Mary Ann has consulted widely and is on the board of directors of several organiza- tions, including the advisory board to Volvo-Geely in China. She is actively involved in several animal welfare organizations and received the 1996 Humanitarian Award of the Year from Miami’s Adopt-a-Pet.

v

dedication

Dedicated with love and devotion to Donna, and to our wonderful daughters, Bryton and Madison

—S.L.M.

Dedicated to Zack, Emma, Googun, Blue, Chloe, Jackson, and Boomer

—M.A.V.G.

vi

1 2

3

4

INTRODUCTION Chapter 1 Introduction to the Field of Organizational

Behavior 2

INDIVIDUAL BEHAVIOR AND PROCESSES Chapter 2 Individual Behavior, Personality, and

Values 30

Chapter 3 Perceiving Ourselves and Others in Organizations 62

Chapter 4 Workplace Emotions, Attitudes, and Stress 90

Chapter 5 Foundations of Employee Motivation 120

Chapter 6 Applied Performance Practices 152

Chapter 7 Decision Making and Creativity 180

TEAM PROCESSES Chapter 8 Team Dynamics 212

Chapter 9 Communicating in Teams and Organizations 246

Chapter 10 Power and Influence in the Workplace 276

Chapter 11 Conflict and Negotiation in the Workplace 302

Chapter 12 Leadership in Organizational Settings 334

ORGANIZATIONAL PROCESSES Chapter 13 Designing Organizational Structures 360

Chapter 14 Organizational Culture 386

Chapter 15 Organizational Change 414

ADDITIONAL CASES Case 1 A Mir Kiss? 440

Case 2 Arctic Mining Consultants 441

Case 3 From REO to Nuclear to Nucor 443

Case 4 Going to the X-Stream 445

Case 5 Keeping Suzanne Chalmers 448

Case 6 The Regency Grand Hotel 449

Case 7 Simmons Laboratories 450

Case 8 Tamarack Industries 454

Case 9 The Outstanding Faculty Award 454

Case 10 The Shipping Industry Accounting Team 455

Case 11 Vêtements Ltée 456

Appendix A Theory Building and Systematic Research Methods 457

Endnotes EN1

Organization Index I1

Name Index I5

Glossary/Subject Index I28

brief contents

vii

The Journey Begins 26 Chapter Summary 26

Key Terms 27

Critical Thinking Questions 27

Case Study: Ancol Corp. 28 Web Exercise: Diagnosing Organizational Stakeholders 28 Class Exercise: It All Makes Sense? 29

INDIVIDUAL BEHAVIOR AND PROCESSES 30

Chapter 2 Individual Behavior, Personality, and Values 30

MARS Model of Individual Behavior and Performance 32

Employee Motivation 32 Ability 33 Role Perceptions 34

Global Connections 2.1: Iceland Foods Takes MARS to Success 34

Situational Factors 35

Types of Individual Behavior 35 Task Performance 36 Organizational Citizenship 36 Counterproductive Work Behaviors 37 Joining and Staying with the Organization 37 Maintaining Work Attendance 37

Personality in Organizations 38 Personality Determinants: Nature versus Nurture 38 Five-Factor Model of Personality 39

Connect Self-Assessment 2.1: What Is Your Big Five Personality? 40 Connect Self-Assessment 2.2: Are You Introverted or Extroverted? 40 Connect Self-Assessment 2.3: Can You Identify Personality Traits from Blogging Words? 42

Jungian Personality Theory and the Myers-Briggs Type Indicator 42

Preface xvi

1INTRODUCTION 2 Chapter 1 Introduction to the Field of Organizational Behavior 2

Welcome to the Field of Organizational Behavior! 4

The Field of Organizational Behavior 4 Historical Foundations of Organizational Behavior 5 Why Study Organizational Behavior? 6

Contemporary Developments Facing Organizations 8

Technological Change 8 Globalization 9 Emerging Employment Relationships 9

Global Connections 1.1: From Commute to Telecommute in Japan 10

Increasing Workforce Diversity 11

Connect Self-Assessment 1.1: Are You a Good Telecommuter? 11

The Systematic Research Anchor 14

Anchors of Organizational Behavior Knowledge 14 Debating Point: Is There Enough Evidence to Support Evidence-Based Management? 15

The Multidisciplinary Anchor 15 The Contingency Anchor 16 The Multiple Levels of Analysis Anchor 16

Perspectives of Organizational Effectiveness 16 Open Systems Perspective 17

Global Connections 1.2: Zara’s Open Systems Thinking 18

Organizational Learning Perspective 19

Global Connections 1.3: Having a Hoot with Organizational Learning 21

High-Performance Work Practices Perspective 21 Stakeholder Perspective 22

Global Connections 1.4: 21 Days of Y’ello Care 24 Connecting the Dots: An Integrative Model of Organizational Behavior 24

contents

© David Hecker/ AP Images

2 © Luke Sharett/ Bloomberg/Getty Images

viii Contents

Connect Self-Assessment 3.2: How Much General Self- Efficacy Do You Have? 68 Connect Self-Assessment 3.3: What Is Your Locus of Control? 69

The Social Self 69 Self-Concept and Organizational Behavior 70

Perceiving the World around Us 70 Global Connections 3.1: Confirmation Bias Leads to False Arrests 72

Perceptual Organization and Interpretation 72

Connect Self-Assessment 3.4: How Much Perceptual Structure Do You Need? 72 Specific Perceptual Processes and Problems 73

Stereotyping in Organizations 73

Global Connections 3.2: Perceptual Barriers to Women on Corporate Boards 76

Attribution Theory 77 Self-Fulfilling Prophecy 79 Other Perceptual Effects 80

Improving Perceptions 81 Awareness of Perceptual Biases 81 Improving Self-Awareness 81

Debating Point: Do Diversity Programs Actually Reduce Perpetual Biases? 82

Meaningful Interaction 83

Connect Self-Assessment 3.5: How Strong Is Your Perspective Taking (Cognitive Empathy)? 84 Connect Self-Assessment 3.6: How Strong Is Your Emotional Empathy? 84 Global Mindset: Developing Perceptions across Borders 84 Global Connections 3.3: Encouraging a Global Mindset in a Global Business 85

Developing a Global Mindset 85 Chapter Summary 86

Key Terms 87

Critical Thinking Questions 87

Case Study: Hy Dairies, Inc. 88 Web Exercise: Diversity and Stereotyping on Display in Corporate Websites 89

Team Exercise: Personal and Organizational Strategies for Developing a Global Mindset 89

Chapter 4 Workplace Emotions, Attitudes, and Stress 90

Emotions in the Workplace 92 Connect Self-Assessment 4.1: What Is Your Emotional Personality? 92

Types of Emotions 92 Emotions, Attitudes, and Behavior 93 Cognitive Dissonance 96

Connect Self-Assessment 2.4: Are You a Sensing or Intuitive Type? 43 Debating Point: Should Companies Use Personality Tests to Select Job Applicants? 44 Values in the Workplace 45

Types of Values 45

Connect Self-Assessment 2.5: What Are Your Dominant Values? 47

Values and Individual Behavior 47 Values Congruence 48

Global Connections 2.2: Values Congruence Generates Bags of Enthusiasm and Intent 48 Ethical Values and Behavior 48

Three Ethical Principles 49 Moral Intensity, Moral Sensitivity, and Situational Influences 49

Global Connections 2.3: Alcoa Executive Sets Ethical Standard in Russia 50

Supporting Ethical Behavior 51

Values across Cultures 51 Individualism and Collectivism 52

Connect Self-Assessment 2.6: How Much Do You Value Individualism and Collectivism? 53

Power Distance 53

Global Connections 2.4: Cross-Cultural Hiccups at Beam Suntory 53 Connect Self-Assessment 2.7: What Is Your Level of Power Distance? 54

Uncertainty Avoidance 54 Achievement-Nurturing Orientation 54 Caveats about Cross-Cultural Knowledge 54 Cultural Diversity in the United States 55

Chapter Summary 55

Key Terms 56

Critical Thinking Questions 56

Case Study: SNC-Lavalin Group Inc. 57 Class Exercise: Test Your Knowledge of Personality 58 Class Exercise: Personal Values Exercise 60 Team Exercise: Ethics Dilemma Vignettes 60

Chapter 3 Perceiving Ourselves and Others in Organizations 62

Self-Concept: How We Perceive Ourselves 64 Self-Concept Complexity, Consistency, and Clarity 64

Connect Self-Assessment 3.1: How Much Does Work Define Your Self-Concept? 65

Self-Enhancement 66 Self-Verification 67 Self-Evaluation 68

Contents ix

Chapter 5 Foundations of Employee Motivation 120

Global Connections 5.1: DHL Express Employees Get Engaged 122

Employee Engagement 122

Employee Drives and Needs 123 Individual Differences in Needs 124

Maslow’s Needs Hierarchy Theory 124

Connect Self-Assessment 5.1: How Strong Are Your Growth Needs? 126

Intrinsic and Extrinsic Motivation 126

Learned Needs Theory 127

Connect Self-Assessment 5.2: How Strong Are Your Learned Needs? 128

Four-Drive Theory 129

Expectancy Theory of Motivation 130 Expectancy Theory in Practice 131

Organizational Behavior Modification and Social Cognitive Theory 133

Organizational Behavior Modification 133

Global Connections 5.2: AirBaltic Motivates Employee Involvement and Learning with Gamification 135

Social Cognitive Theory 136

Goal Setting and Feedback 137

Connect Self-Assessment 5.3: What Is Your Goal Orientation? 138

Characteristics of Effective Feedback 138

Sources of Feedback 139

Evaluating Goal Setting and Feedback 140

Organizational Justice 140 Equity Theory 140

Debating Point: Does Equity Motivate More Than Equality? 141

Connect Self-Assessment 5.4: How Sensitive Are You to Inequities? 143

Procedural Justice 144

Chapter Summary 144

Key Terms 145

Critical Thinking Questions 146

Case Study: Predicting Harry’s Work Effort 146

Case Study: Cincinnati Super Subs 147 Class Exercise: Needs Priority Exercise 148 Class Exercise: The Learning Exercise 149 Team Exercise: Bonus Decision Exercise 150

Debating Point: Is Having Fun at Work Really a Good Idea? 97

Emotions and Personality 97

Managing Emotions at Work 98 Emotional Display Norms across Cultures 98 Emotional Dissonance 98

Global Connections 4.1: Learning to Express Positive Emotions at Aeroflot 99 Emotional Intelligence 99 Connect Self-Assessment 4.2: How Well Do You Recognize and Regulate Emotions? 100

Emotional Intelligence Outcomes and Development 101

Job Satisfaction 102 Job Satisfaction and Work Behavior 103 Job Satisfaction and Performance 104 Job Satisfaction and Customer Satisfaction 104 Job Satisfaction and Business Ethics 106

Organizational Commitment 106 Connect Self-Assessment 4.3: How Committed Are You to Your School? 106

Consequences of Affective and Continuance Commitment 106 Building Organizational Commitment 107

Work-Related Stress and Its Management 108 Connect Self-Assessment 4.4: How Stressed Are You? 109

General Adaptation Syndrome 109 Consequences of Distress 109 Stressors: The Causes of Stress 110

Global Connections 4.2: Chronic Work Overload in China 111

Individual Differences in Stress 112

Connect Self-Assessment 4.5: Are You a Workaholic? 112

Managing Work-Related Stress 113

Connect Self-Assessment 4.6: How Do You Cope with Stressful Situations? 115 Chapter Summary 115

Key Terms 116

Critical Thinking Questions 116

Case Study: Diana’s Disappointment: The Promotion Stumbling Block 117

Class Exercise: Strengths-Based Coaching 118

Team Exercise: Ranking Jobs on Their Emotional Labor 119

x Contents

Connect Self-Assessment 6.4: Do You Have a Proactive Personality? 175 Chapter Summary 175

Key Terms 176

Critical Thinking Questions 176

Case Study: Yakkatech, Inc. 177 Team Exercise: Is Student Work Enriched? 178

Chapter 7 Decision Making and Creativity 180

Rational Choice Decision Making 182 Rational Choice Decision-Making Process 182 Problems with Rational Choice Decision Making 184

Identifying Problems and Opportunities 184 Problems with Problem Identification 184 Identifying Problems and Opportunities More Effectively 186

Searching for, Evaluating, and Choosing Alternatives 186

Problems with Goals 187 Problems with Information Processing 187 Problems with Maximization 189 Evaluating Opportunities 190 Emotions and Making Choices 190 Intuition and Making Choices 191

Connect Self-Assessment 7.1: What Is Your Preferred Decision-Making Style? 192

Making Choices More Effectively 192

Implementing Decisions 193 Evaluating Decision Outcomes 194

Escalation of Commitment 194

Global Connections 7.1: Escalation of Commitment Produces a White Elephant in Queensland 195

Evaluating Decision Outcomes More Effectively 195

Creativity 196 The Creative Process 196

Connect Self-Assessment 7.2: How Well Do You Engage in Divergent Thinking? 197

Characteristics of Creative People 198

Connect Self-Assessment 7.3: Do You Have a Creative Personality? 199

Organizational Conditions Supporting Creativity 199 Activities That Encourage Creativity 200

Employee Involvement in Decision Making 202 Benefits of Employee Involvement 202

Global Connections 7.2: Brasilata, the Ideas Company 203 Contingencies of Employee Involvement 203

Chapter 6 Applied Performance Practices 152

The Meaning of Money in the Workplace 154 Connect Self-Assessment 6.1: What Is Your Attitude toward Money? 154 Financial Reward Practices 155

Membership- and Seniority-Based Rewards 155

Global Connections 6.1: Mega Reward for Tiens Group Employees 156

Job Status–Based Rewards 156 Competency-Based Rewards 157 Performance-Based Rewards 157

Improving Reward Effectiveness 159 Debating Point: Is It Time to Ditch the Performance Review? 160

Link Rewards to Performance 160 Ensure That Rewards Are Relevant 161 Use Team Rewards for Interdependent Jobs 161 Ensure That Rewards Are Valued 161 Watch Out for Unintended Consequences 161

Global Connections 6.2: When Rewards Go Wrong 162 Job Design Practices 162

Job Design and Work Efficiency 162 Scientific Management 163 Problems with Job Specialization 164

Job Design and Work Motivation 165 Core Job Characteristics 166 Critical Psychological States 166 Individual Differences 167 Social and information Processing Job Characteristics 167

Job Design Practices That Motivate 168 Job Rotation 168 Job Enlargement 169 Job Enrichment 169

Empowerment Practices 170 Connect Self-Assessment 6.2: Are You Empowered as a Student? 170

Supporting Empowerment 171

Global Connections 6.3: Svenska Handelsbanken’s Branch-Level Empowerment 171 Self-Leadership Practices 172

Self-Leadership Strategies 172

Connect Self-Assessment 6.3: How Well Do You Practice Self-Leadership? 174

Effectiveness of Self-Leadership 174 Personal and Situational Predictors of Self-Leadership 175

Contents xi

Debating Point: Are Virtual Teams More Trouble Than They’re Worth? 236 Team Decision Making 237

Constraints on Team Decision Making 237 Improving Creative Decision Making in Teams 238

Chapter Summary 240

Key Terms 241

Critical Thinking Questions 241

Case Study: Conifer Corp. 241 Team Exercise: Team Tower Power 243 Team Exercise: Human Checkers 243 Team Exercise: Survival on the Moon 244

Chapter 9 Communicating in Teams and Organizations 246

The Importance of Communication 248 A Model of Communication 250

Influences on Effective Encoding and Decoding 250

Communication Channels 251 Internet and Digital Communication 252 Problems with Email and Other Digital Message Channels 252 Workplace Communication through Social Media 253

Global Connections 9.1: Bosch Employees Improve Collaboration through Social Media 255

Nonverbal Communication 255

Choosing the Best Communication Channel 257 Synchronicity 257 Social Presence 258 Social Acceptance 258 Media Richness 258

Global Connections 9.2: Multicommunicating across the Pacific 261

Communication Channels and Persuasion 261

Communication Barriers (Noise) 262 Information Overload 263

Cross-Cultural and Gender Communication 264 Global Connections 9.3: Politely Waiting for Some Silence 265

Nonverbal Differences across Cultures 265 Gender Differences in Communication 265

Improving Interpersonal Communication 266 Getting Your Message Across 266 Active Listening 267

3 © Industrial Molds

Debating Point: Should Organizations Practice Democracy? 204 Chapter Summary 205

Key Terms 206

Critical Thinking Questions 206

Case Study: Employee Involvement Cases 207 Team Exercise: Where in the World Are We? 208 Class Exercise: The Hopping Orange 211 Class Exercise: Creativity Brainbusters 211

TEAM PROCESSES 212

Chapter 8 Team Dynamics 212

Teams and Informal Groups 214 Informal Groups 215

Advantages and Disadvantages of Teams 216

The Challenges of Teams 217

A Model of Team Effectiveness 219 Organizational and Team Environment 219

Global Connections 8.1: European Firms Enhance Team Performance with Obeya Rooms 220 Team Design Elements 220

Task Characteristics 220 Team Size 222 Team Composition 222

Connect Self-Assessment 8.1: Are You a Team Player? 225 Team Processes 225

Team Development 225

Connect Self-Assessment 8.2: What Team Roles Do You Prefer? 227

Team Norms 229 Team Cohesion 230

Global Connections 8.2: Communal Meals Build Team Cohesion 231

Team Trust 232

Connect Self-Assessment 8.3: How Trusting Are You? 233 Self-Directed Teams 233 Global Connections 8.3: Buurtzorg Nederland’s Self-Directed Nursing Teams 234

Success Factors for Self-Directed Teams 235

Virtual Teams 235 Success Factors for Virtual Teams 235

xii Contents

Connect Self-Assessment 10.2: What Is Your Approach to Influencing Coworkers? 291

Types of Influence Tactics 291 Consequences and Contingencies of Influence Tactics 295

Organizational Politics 296 Connect Self-Assessment 10.3: How Politically Charged Is Your School? 296 Global Connections 10.3: Playing Politics with the Vacation Schedule 297

Minimizing Organizational Politics 297

Connect Self-Assessment 10.4: How Machiavellian Are You? 298 Chapter Summary 298

Key Terms 299

Critical Thinking Questions 299

Case Study: Resonus Corporation 300 Team Exercise: Deciphering the Network 301 Team Exercise: Managing Your Boss 301

Chapter 11 Conflict and Negotiation in the Workplace 302

The Meaning and Consequences of Conflict 304 Is Conflict Good or Bad? 304

The Emerging View: Task and Relationship Conflict 306

Separating Task from Relationship Conflict 307

Conflict Process Model 308 Structural Sources of Conflict in Organizations 308

Incompatible Goals 309 Differentiation 309 Interdependence 309 Scarce Resources 310 Ambiguous Rules 310 Communication Problems 310

Interpersonal Conflict-Handling Styles 311 Connect Self-Assessment 11.1: What Is Your Preferred Conflict-Handling Style? 312

Choosing the Best Conflict-Handling Style 312 Cultural and Gender Differences in Conflict-Handling Styles 314

Structural Approaches to Conflict Management 314

Emphasizing Superordinate Goals 314 Reducing Differentiation 315 Improving Communication and Mutual Understanding 315

Connect Self-Assessment 9.1: Are You an Active Listener? 268 Improving Communication throughout the Hierarchy 268

Workspace Design 268 Internet-Based Organizational Communication 268 Direct Communication with Top Management 269

Communicating through the Grapevine 270 Grapevine Characteristics 270 Grapevine Benefits and Limitations 270

Debating Point: Should Management Use the Grapevine to Communicate to Employees? 271 Chapter Summary 271

Key Terms 272

Critical Thinking Questions 272

Case Study: Silver Lines: Challenges in Team Communication 273

Team Exercise: Cross-Cultural Communication Game 275

Chapter 10 Power and Influence in the Workplace 276

The Meaning of Power 278 Sources of Power in Organizations 280

Legitimate Power 280

Global Connections 10.1: Deference to Authority Leads People to the Extreme 281

Reward Power 282 Coercive Power 282 Expert Power 282 Referent Power 282

Contingencies of Power 284 Substitutability 284 Centrality 285

Debating Point: How Much Power Do CEOs Really Possess? 285

Visibility 286 Discretion 286

The Power of Social Networks 286 Connect Self-Assessment 10.1: Do You Have a Guanxi Orientation? 287

Social Capital and Sources of Power 287

Global Connections 10.2: Energy Company Improves Productivity through Social Networks 287

Gaining Power through Social Networks 288

Consequences of Power 290 Influencing Others 290

Contents xiii

Global Connections 11.1: L’Oréal Canada Improves Mutual Understanding across Generations 316

Reducing Interdependence 316 Increasing Resources 317 Clarifying Rules and Procedures 317

Third-Party Conflict Resolution 317 Choosing the Best Third-Party Intervention Strategy 318

Resolving Conflict through Negotiation 319 Distributive versus Integrative Approaches to Negotiation 319 Preparing to Negotiate 320 The Negotiation Process 321 The Negotiation Setting 324 Gender and Negotiation 325

Chapter Summary 326

Key Terms 327

Critical Thinking Questions 327

Case Study: Elaine’s Challenging Experience 328 Class Exercise: The Contingencies of Conflict Handling 329 Team Exercise: Kumquat Conflict Role Play 332

Chapter 12 Leadership in Organizational Settings 334

What Is Leadership? 336 Shared Leadership 336

Global Connections 12.1: EllisDon: The Leaderful Construction Company 337 Transformational Leadership Perspective 337

Develop and Communicate a Strategic Vision 338

Global Connections 12.2: Lasvit’s Vision of Breathtaking Light and Design 338

Model the Vision 340 Encourage Experimentation 340 Build Commitment toward the Vision 340

Connect Self-Assessment 12.1: What Are Your Transformational Leadership Tendencies? 340

Transformational Leadership and Charisma 341

Global Connections 12.3: Tencent’s Uncharismatic Tranformational Leader 341

Evaluating the Transformational Leadership Perspective 342

Managerial Leadership Perspective 342 Task-Oriented and People-Oriented Leadership 343

Connect Self-Assessment 12.2: What Is Your Preferred Managerial Leadership Style? 344

Servant Leadership 344 Path–Goal Leadership Theory 345 Other Managerial Leadership Theories 347 Leadership Substitutes 349

4

Implicit Leadership Perspective 349 Prototypes of Effective Leaders 349

The Romance of Leadership 350

Global Connections 12.4: Semco CEO Warns against the Romance of Charismatic Leadership 350 Connect Self-Assessment 12.3: Do Leaders Make a Difference? 350 Personal Attributes Perspective of Leadership 351

Authentic Leadership 353

Debating Point: Should Leaders Really Be Authentic All the Time? 354

Personal Attributes Perspective Limitations and Practical Implications 354

Cross-Cultural and Gender Issues in Leadership 355 Gender and Leadership 355

Chapter Summary 356

Key Terms 357

Critical Thinking Questions 357

Case Study: A Window on Life 358 Team Exercise: Leadership Diagnostic Analysis 359

ORGANIZATIONAL PROCESSES 360

Chapter 13 Designing Organizational Structures 360

Division of Labor and Coordination 362 Division of Labor 362

Coordination of Work Activities 363

Elements of Organizational Structure 365 Span of Control 365

Global Connections 13.1: BBC Further Flattens the Hierarchy 367

Centralization and Decentralization 369

Debating Point: Should Organizations Cut Back Middle Management? 369

Formalization 369

Mechanistic versus Organic Structures 370

Connect Self-Assessment 13.1: Which Organizational Structure Do You Prefer? 371 Forms of Departmentalization 371

Simple Structure 371

Functional Structure 371

Global Connections 13.2: Chapman’s Ice Cream Grows Its Organizational Structure 372

Divisional Structure 373

Source: Tim Eulitz/Wikimedia

xiv Contents

Changing and Strengthening Organizational Culture 401

Actions of Founders and Leaders 401 Align Artifacts with the Desired Culture 402 Introduce Culturally Consistent Rewards and Recognition 402 Support Workforce Stability and Communication 403 Use Attraction, Selection, and Socialization for Cultural Fit 404

Global Connections 14.1: Spinning the Wheel for Culture Fit 404 Organizational Socialization 404

Learning and Adjustment Process 405 Psychological Contracts 405 Stages of Organizational Socialization 406

Global Connections 14.2: Connected Socialization at trivago 407

Improving the Socialization Process 408 Chapter Summary 409

Key Terms 409

Critical Thinking Questions 410

Case Study: Hillton’s Transformation 410 Team Exercise: Organizational Culture Metaphors 411

Class Exercise: Diagnosing Corporate Culture Proclamations 413

Chapter 15 Organizational Change 414

Lewin’s Force Field Analysis Model 416 Understanding Resistance to Change 418

Why Employees Resist Change 419

Connect Self-Assessment 15.1: Are You Ready for Change? 419 Unfreezing, Changing, and Refreezing 421

Creating an Urgency for Change 421

Global Connections 15.1: Panasonic Generates an Urgency for Change by Revealing the Truth 422 Connect Self-Assessment 15.2: Are You Tolerant of Change? 423

Reducing the Restraining Forces 423 Refreezing the Desired Conditions 425

Global Connections 15.2: Communicate, Involve, or Change Your People 426 Leadership, Coalitions, and Pilot Projects 426

Transformational Leadership and Change 426 Coalitions, Social Networks, and Change 427

Global Connections 13.3: Toyota’s Evolving Divisional Structure 374

Team-Based Structure 375

Global Connections 13.4: Haier Group’s Team-Based Organizational Structure 376

Matrix Structure 376

Global Connections 13.5: Matrix Structure Troubles at Hana Financial Group 378

Network Structure 379

Contingencies of Organizational Design 380 External Environment 380 Organizational Size 381 Technology 382

Connect Self-Assessment 13.2: Does Your Job Require an Organic or Mechanistic Structure? 382

Organizational Strategy 382 Chapter Summary 383

Key Terms 383

Critical Thinking Questions 384

Case Study: Merritt’s Bakery 384 Team Exercise: The Club Ed Exercise 385

Chapter 14 Organizational Culture 386

Elements of Organizational Culture 388 Espoused versus Enacted Values 389 Content of Organizational Culture 390

Connect Self-Assessment 14.1: Which Corporate Culture Do You Prefer? 391

Organizational Subcultures 391

Deciphering Organizational Culture through Artifacts 391

Organizational Stories and Legends 392 Organizational Language 392 Rituals and Ceremonies 393 Physical Structures and Symbols 394

Is Organizational Culture Important? 395 Meaning and Potential Benefits of a Strong Culture 395 Contingencies of Organizational Culture and Effectiveness 396

Debating Point: Is Corporate Culture an Overused Phrase? 398

Organizational Culture and Business Ethics 398

Merging Organizational Cultures 399 Bicultural Audit 399 Strategies for Merging Different Organizational Cultures 399

Contents xv

Global Connections 15.3: Trailblazing Viral Change at RSA Insurance 428

Pilot Projects and Diffusion of Change 428

Four Approaches to Organizational Change 430 Action Research Approach 430

Debating Point: What’s the Best Speed for Organizational Change? 431

Appreciative Inquiry Approach 432

Global Connections 15.4: Appreciative Inquiry Guides Leadership at Toronto Western Hospital 434

Large Group Intervention Approach 434 Parallel Learning Structure Approach 435

Cross-Cultural and Ethical Issues in Organizational Change 435 Organizational Behavior: The Journey Continues 436 Chapter Summary 436

Key Terms 437

Critical Thinking Questions 437

Case Study: TransAct Insurance Corporation 438 Team Exercise: Strategic Change Incidents 439

ADDITIONAL CASES Case 1: A Mir Kiss? 440 Case 2: Arctic Mining Consultants 441 Case 3: From REO to Nuclear to Nucor 443 Case 4: Going to the X-Stream 445 Case 5: Keeping Suzanne Chalmers 448 Case 6: The Regency Grand Hotel 449 Case 7: Simmons Laboratories 450 Case 8: Tamarack Industries 454 Case 9: The Outstanding Faculty Award 454 Case 10: The Shipping Industry Accounting Team 455 Case 11: Vêtements Ltée 456

Appendix A Theory Building and Systematic Research Methods 457

Endnotes EN1

Organization Index I1

Name Index I5

Glossary/Subject Index I28

xvi Contents

xvi

Welcome to the exciting world of organizational behavior! Knowledge is replacing infra- structure. Social media and virtual teams are transforming the way employees work to- gether. Values and self-leadership are replacing command-and-control management. Companies are looking for employees with emotional intelligence and effective team- work skills, not just technical smarts.

Organizational Behavior, Eighth Edition, is written in the context of these emerging workplace realities. This edition explains how emotions are the foundation of employee motivation, attitudes, and decisions; how social networks generate power and shape communication patterns; how self-concept influences individual behavior, team cohe- sion, and leadership; and how adopting a global mindset has become an important employee characteristic in this increasingly interconnected world. This book also presents the reality that organizational behavior is not just for managers; it is relevant and valuable to anyone who works in and around organizations.

Linking Theory with Reality Every chapter of Organizational Behavior is filled with examples to make OB knowledge more meaningful as well as to illuminate the relevance and excitement of this field. These stories about real people and organizations translate academic theories into useful knowl- edge and real-life applications. For example, we describe how employees at Airbnb, the San Francisco–based online vacation accommodation company, are intrinsically motivated through autonomy and personal growth; how John Dean, executive chair of Hawaii’s Central Pacific Bank, helped his executive team work together more effectively by learning about each other’s personalities; how easyJet CEO Carolyn McCall revived the discount airline through transformational leadership behaviors and effective leadership skills; how police forces in San Diego and Baltimore are improving officers’ interpersonal skills through emotional intelligence training; and how David Sacks (cofounder of Yammer and one of PayPal’s earliest executives) applied change leadership practices to transform Silicon Valley start-up Zenefits into a more compliance-driven company.

These real-life stories, which the authors personally selected and incorporated into this book, appear in many forms. Every chapter is filled with photo captions and in-text anec- dotes about work life. Global Connections features “connect” OB concepts with events in real-world companies around the planet. Case studies in each chapter also connect OB concepts to the emerging workplace realities. These anecdotes and detailed descriptions discuss large and small organizations around the world and in a wide range of industries.

Global Focus From its first edition, this book has been crafted around the reality of increasing global- ization. The Eighth Edition continues this global focus by introducing the theme in the first chapter and by discussing global and cross-cultural issues in many other chapters. Furthermore, every chapter includes truly global examples, not just how American com- panies operate in other parts of the world. For example, we describe how New Zealand drinks manufacturer Frucor Beverages maintains a highly engaged workforce; how China’s e-commerce giant Alibaba Group has nurtured a strong organizational culture; how Buurtzorg Nederland organized its 8,000 professionals into self-directed teams to become one of the world’s best-managed community health care organizations; how In- fosys, one of India’s leading technology companies, is improving employee creativity and decision making through design thinking principles and practices; how the president of Panasonic Corporation created an urgency for change at the Japanese conglomerate; and how trivago, the German-based hotel metasearch company, puts considerable resources into the employee socialization process.

preface

Contemporary Theory Foundation Vivid real-world examples and practices are valuable only if they are connected to good theory. Organizational Behavior has developed a reputation for its solid foundation in con- temporary and classic research and writing. This evidence-based foundation is apparent from the number and quality of literature cited in each chapter, including dozens of articles, books, and other sources. The most recent literature receives thorough coverage, resulting in what we believe is the most up-to-date organizational behavior textbook available. These references also reveal that we reach out to marketing, information management, human resource management, and other disciplines for new ideas. This book is rigorously focused on information that readers value, namely OB knowledge and practices. Consequently, with a few classic exceptions, we avoid writing a “who’s who” book; most scholars are named in the references, not in the main text.

One of the driving forces for writing Organizational Behavior is to provide a more responsive conduit for emerging OB knowledge to reach students, practitioners, and fellow scholars. To its credit, Organizational Behavior is apparently the first major OB book to discuss the full self-concept model (not just core self-evaluation), workplace emotions, social identity theory, global mindset, four-drive theory, predictors of moral intensity, specific elements of social networks, appreciative inquiry, affective events theory (but without the jargon), somatic marker hypothesis (also without the jargon), virtual teams, mindfulness in ethical behavior, Schwartz’s values model, employee engagement, learning orientation, social and information processing characteristics of job design, and several other groundbreaking topics. This edition continues this leadership by introducing the latest knowledge on design thinking, self-concept distinctiveness versus inclusion, and the four factors to consider when selecting the best communication channel.

Organizational Behavior Knowledge for Everyone Another distinctive feature of Organizational Behavior is that it is written for everyone in organizations, not just managers. The philosophy of this book is that everyone who works in and around organizations needs to understand and make use of organizational behavior knowledge. People throughout the organization—systems analysts, production employees, accounting professionals—are taking on more responsibilities as companies remove layers of management and give the rest of us more autonomy and accountability for our work outcomes. This book helps everyone make sense of organizational behavior, and provides the conceptual tools to work more effectively in the workplace.

Active Learning and Critical Thinking Support We teach organizational behavior, so we understand how important it is to use a textbook that offers deep support for active learning and critical thinking. Business school accreditation associations also emphasize the importance of the learning experience, which further reinforces our attention on classroom activities. This Eighth Edition in- cludes more than two dozen case studies in various forms and levels of complexity, as well as four dozen self-assessments, most of which have been empirically tested and validated. This book is also a rich resource for in-class activities, some of which are not available in other organizational behavior books, such as the Personal Values Exercise, Employee Involvement Cases, Deciphering the (Social) Network, Test Your Knowledge of Personality, and the Cross-Cultural Communication Game.

Preface xvii

Changes to the Eighth Edition Organizational Behavior, Eighth Edition, incorporates numerous improvements, thanks to reviews by dozens of organizational behavior instructors across several countries, along with our regular practice of scanning the diverse literature for new ideas that have gained sufficient evidential support. Almost every chapter in this edition has noticeable updates and revisions, but the most substantial changes have occurred in Chapter 1 (introduction to OB), Chapter 7 (decision making and creativity), Chapter 9 (communi- cation), and Chapter 11 (conflict and negotiation).

Together with dozens of conceptual improvements, this edition replaces most exam- ples with new real-world stories that satisfy our criteria of being recent, interesting, and relevant. Almost all of the chapter-opening case studies are new; only two opening vi- gnettes remain from the previous edition, both of which have been updated. Most cap- tioned photos and Global Connections features are new or updated. We have also added dozens of new in-text examples as well as several new case studies for class discussion or course assignments. A unique strength of Organizational Behavior, Eighth Edition (and previous editions), is that the authors personally researched and wrote all of the conceptual content, in-text examples, captioned photos, and features. This provides bet- ter integration of the knowledge and ensures that the examples are truly relevant and useful additions to the learning experience.

Here are the main conceptual improvements in Organizational Behavior, Eighth Edition:

• Chapter 1: Introduction to the Field of Organizational Behavior—This chapter has been substantially updated, revised, and reorganized from the previous edition. We have incorporated an integrated model of organizational behavior to help students visualize the relationship among the main concepts throughout this book. Technological change has been added in the section on contemporary developments facing organizations. The section on perspectives of organizational effectiveness has been streamlined and moved to the latter part of the chapter. Most topics have been rewritten, but particularly the text on the four contemporary developments, why study OB, and several aspects of organizational effectiveness.

• Chapter 2: Individual Behavior, Personality, and Values—Several topics in this chapter have been updated, particularly coverage of the five-factor model of per- sonality and work performance, values and individual behavior, moral sensitivity, and cultural diversity within the United States.

• Chapter 3: Perceiving Ourselves and Others in Organizations—This book apparently pioneered the full model of self-concept and its relevance to organizational behavior. This edition further develops this important topic and provides new information on the opposing motives for distinctiveness and inclusion. The section on stereo- typing also includes new information about stereotype threat.

• Chapter 4: Workplace Emotions, Attitudes, and Stress—This edition significantly revises and updates discussion on four key workplace stressors, with new writing about organizational constraints and interpersonal conflict as stressors. Other parts of this chapter received minor revision, such as discussion of attitude–behavior contingencies.

• Chapter 5: Foundations of Employee Motivation—New to this edition is the topic of intrinsic and extrinsic motivation, as well as the question of whether introducing extrinsic sources of motivation reduces intrinsic motivation. We have also refined the writing on four-drive theory, drives and needs, Maslow’s needs hierarchy, and feedback.

• Chapter 6: Applied Performance Practices—The previous edition was among the first OB books to introduce recent knowledge about the social and information

xviii Preface

processing characteristics of jobs. This edition further refines that emerging topic. It also has updated content on the meaning of money, supporting empowerment, and self-leadership effectiveness.

• Chapter 7: Decision Making and Creativity—This chapter has been substantially revised and updated in several ways. The emerging topic of design thinking was briefly introduced in the previous edition, but this chapter now presents the topic fully as a set of principles and activities to improve creative decision making. Another area with substantial rewriting is the topic of problems with information processing when choosing alternatives. Several topics have also received minor updates, particularly on solution-focused problems, problems with goals, implicit favorite bias, and satisficing (problems with maximization).

• Chapter 8: Team Dynamics—This edition refines discussion introduced in the previous edition on the three characteristics that distinguish types of teams. It also updates and offers more detail about social loafing. This chapter incorporates task variability and analyzability (introduced in Chapter 6) as task characteristics that influence the need for teamwork. Several other topics have also been revised, such as team mental models (as part of team development), team development through team building, the team cohesion–performance relationship, and brainstorming.

• Chapter 9: Communicating in Teams and Organizations—This edition includes a complete revision and update on choosing the best communication medium. This topic now fully discusses four key factors (synchronicity, social presence, social acceptance, and media richness), along with their associated contingencies to communication channel selection. This edition further shifts the focus toward various forms of digital communication (less focus on email alone). It also has minor revisions on the encoding–decoding process and the benefits of enterprise social media.

• Chapter 10: Power and Influence in the Workplace—This chapter has a few minor changes, such as on the topic of nonsubstitutability.

• Chapter 11: Conflict and Negotiation in the Workplace—This edition substantially reorganizes and updates the entire section on resolving conflict through negotiation. The new or revised topics include distributive and integrative approaches to bar- gaining, understanding needs, bargaining zone dynamics, how BATNA increases bargaining power, the importance of listening, and strategies for making conces- sions. This edition also introduces recent knowledge about gender and negotiation. Elsewhere in this chapter, we update coverage on task and relationship conflict, including further clarification of these concepts, reference to process conflict, and problems resulting from relationship conflict.

• Chapter 12: Leadership in Organizational Settings—The previous edition sub- stantially revised and reorganized this chapter. Aside from new examples and references, this edition has relatively minor changes, notably on the topics of communicating the vision, evaluating path–goal theory, and the personal attributes of effective leaders.

• Chapter 13: Designing Organizational Structures—This chapter has minor revisions, notably on span of control and on the structural contingency of diverse versus integrated environments.

• Chapter 14: Organizational Culture—Along with replacing most examples and updating references, this chapter has a number of subtle changes, particularly on the topics of espoused versus enacted values, content of organizational culture, types of organizational culture artifacts, the integration strategy for merging cultures, and how founders and leaders shape and strengthen culture.

• Chapter 15: Organizational Change—The main changes to this chapter are examples and updated literature references.

Preface xix

xx Contents

Organizational behavior is a fascinating subject. It is also incredibly relevant and valu- able, which becomes apparent while developing a world-class book such as Organiza- tional Behavior, Eighth Edition. Throughout this project, we witnessed the power of teamwork, the excitement of creative thinking, and the motivational force of the vision that we collectively held as our aspiration. The tight coordination and innovative synergy was evident throughout this venture. Our teamwork is even more amazing when you con- sider that most team members on this project are scattered throughout the United States, and the lead coauthor (Steve) spends most of his time on the other side of the planet!

Executive brand manager Mike Ablassmeir led the development of Organizational Behavior with unwavering enthusiasm and foresight. Katie Eddy and Tracey Douglas orchestrated the daily process with superhuman skill and determination, which is par- ticularly important given the magnitude of this revision, the pressing deadlines, and the 24-hour time zones in which we operated. Jennifer Blankenship, our photo researcher, continues to amaze us. She tracked down photos that we sought from every corner of the globe. Jessica Cuevas created a refreshing book design that elegantly incorporated the writing, exhibits, anecdotes, photos, and many other resources that we pack into this volume. We also extend our thanks to Sharon O’Donnell for superb copyediting, Christine Vaughan for leading the production process like a precision timepiece, Judy Bulin for her work on Connect, Integra for its work on the test bank, Kepos Media for its work on LearnSmart, and Necco McKinley for her excellent marketing and sales development work. Thanks to you all. This has been a truly wonderful journey!

Several dozen instructors around the world reviewed parts or all of Organizational Behavior, Eighth Edition, or related editions in other countries over the past few years. Their compliments were energizing, and their suggestions significantly improved the final product. The following people from U.S. colleges and universities provided the most recent feedback for improvements specifically for this edition:

acknowledgments

Brenda Bradford Missouri Baptist University

Tristan Davison Daytona State College

Ruben Delgado California State Polytechnic University, Pomona

Steven Elias New Mexico State University

Jody Fry Texas A&M Central Texas

Nathan Heller Tarleton State University

Kendra Ingram Texas A&M University, Commerce

Avan Jassawalla SUNY Geneseo

Rusty Juban Southeastern Louisiana University

Joyce Lopez Missouri State University

Douglas McCabe Georgetown University

Grady Meeks Daytona State College

Angela Murphy Florida A&M University

Antoinette Phillips Southeastern Louisiana University

Shaun Pichler California State University, Fullerton

Vana Prewitt Mount Olive College

xx

We also extend our sincere thanks to Eileen Hogan for exceptional work on revision of the test bank, as well as to Judith Bulin, Linda M. Hoffman, and Todd Korol for their assistance in creating and updating the Connect and LearnSmart content. In addition, we thank the many instructors in the United States and abroad who contributed cases and exercises to this edition of Organizational Behavior.

Steve also extends special thanks to his students for sharing their learning experiences and assisting with the development of this organizational behavior textbook in the United States, Canada, and the Asia-Pacific region. Steve is honored to work with Mary Ann Von Glinow as well as with his other coauthors, including Kevin Tasa (Schulich School of Business, York University) and Sandra Steen (University of Regina) on the Canadian edition, and Mara Olekalns (Melbourne Business School), Alex Newman (Deakin University), and Tony Travaglione (Curtin University) on the Asia-Pacific edition. He also thanks the coauthors of other translations and adaptations. Most of all, Steve is forever indebted to his wife, Donna McClement, and to their wonderful daughters, Bryton and Madison. Their love and support give special meaning to Steve’s life.

Mary Ann would also like to acknowledge the many professionals at McGraw-Hill/ Irwin who have worked to make the Eighth Edition a reality. In addition, she would like to thank the many, many students who have used and hopefully enjoyed this book, so a big shout-out to all students everywhere who have used and enjoyed previous editions of this book. She would also like to thank the faculty and staff at Florida International University. Most importantly, though, Mary Ann thanks coauthor Steve McShane for his tireless efforts. Finally, Mary Ann would like to thank her family, starting with the immediate ones, Chloe, Jackson, Boomer, and Blue. She would also like to thank John, Rhoda, Lauren, Lindsay, and Christen. She also acknowledges the critical role that some very special people play in her life: Janet, Peter M., Bill, Lana, Karen, Alan, Danny, Peter W., Letty D., John D., CEK, and Jeff, Damian, Debra, Mary T., Linda C., Joanne M., and Susan RW. Thanks to you all!

Joy Smith Elizabeth City State University

Charles Swayne University of Wisconsin, La Crosse; Viterbo University

Meera Venkatachalam University of New Hampshire, Durham

Marilyn Young The University of Texas at Tyler

Acknowledgments xxi

AN INTERNATIONAL AUTHOR TEAM FOR THE GLOBAL EMPLOYEE Drawing on their extensive international teaching and research experience, the authors have produced a book that is highly regarded for its global focus. Steve McShane teaches in Australia and throughout Asia, and gives talks each year to schools throughout Asia and North America. As director of the Center for International Business Education, Mary Ann Von Glinow regularly visits and conducts research in South America, China, and elsewhere around the world.

DEBATING POINTS Debating Point boxes help students think critically and recognize that even seemingly obvious ideas have logical counterarguments. Debating Points also raise the bar by focusing on topics that are central to the world of work.

REAL-WORLD EXAMPLES BRING OB TO LIFE Every chapter is filled with examples to make OB knowledge more meaningful and reflect the relevance and excitement of this field. Opening case studies set the stage; captioned photos depict OB concepts; and Global Connections features present more international examples of OB concepts in practice.

SELF-ASSESSMENTS Self-assessments are an important and engaging part of the active learning process. This edition features self-assessments associated with content in every chapter, such as power-distance orientation, romance of leadership, preferred organizational structure, work centrality, sensing-intuitive type, and guanxi orientation. These self-assessments are available online in Connect with self-scoring results and written feedback.

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supporting the learning process

xxiv Contents

Online Learning Center (www.mhhe.com/mcshane8e) The Online Learning Center provides instructors with the following teaching tools.

INSTRUCTOR’S MANUAL This is one of the few textbooks for which the authors write the Instructor’s Manual, ensuring that the instructor materials represent the textbook’s content and support in- structor needs. Each chapter includes the learning objectives, glossary of key terms, a chapter synopsis, complete lecture outline with thumbnail images of corresponding PowerPoint slides, and suggested answers to the end-of-chapter discussion questions. Also included are teaching notes for the chapter case(s), team exercises, and self- assessments. The Instructor’s Manual also provides complete teaching notes for the additional cases.

TEST BANK AND EZ TEST Updated for this edition, the Test Bank includes more than 2,000 multiple-choice, true/false, and essay questions. Each question identifies the relevant learning objective, Bloom’s taxonomy level, AACSB standard for assurance of learning, and difficulty level.

In addition, McGraw-Hill’s testing software, EZ Test, allows you to easily query for learning objectives that directly relate to the learning objectives for your course; the reporting features of EZ Test also enable you to aggregate student results, making the collection and presentation of assurance-of-learning data quick and easy. The program provides a means to create tests that are book-specific and even add your own ques- tions. Multiple versions of a test can be created, and any test can be exported for use with course management systems such as WebCT and Blackboard or with any other course management system.

POWERPOINT PRESENTATION SLIDES The PowerPoint slides have been prepared by the authors, allowing seamless integra- tion between the slides and the Instructor’s Manual. Each chapter includes more than two dozen slides, featuring key points, photographs, and figures from the text, as well as teaching tips and notes for using the slides.

Organizational Behavior, Eighth Edition, includes a variety of supplemental materials to help

instructors prepare and present the material in this textbook more effectively.

student and instructor support materials

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Contents xxv

Video Resources MANAGER’S HOT SEAT Now instructors can put students in the hot seat with access to an interactive program. Students watch real managers apply their years of experience when confronting un- scripted issues. As the scenario unfolds, questions about how the manager is handling the situation pop up, forcing the student to make decisions along with the manager. At the end of the scenario, students watch a post-scenario interview with the manager, to see how their responses matched up with the manager’s decisions. The Manager’s Hot Seat videos are now available as assignments in Connect.

AACSB Statement McGraw-Hill Education is a proud corporate member of AACSB International. Under- standing the importance and value of AACSB accreditation, the authors of Organiza- tional Behavior, Eighth Edition, recognize the curricula guidelines detailed in the AACSB standards for business accreditation by connecting selected questions in the text and/or the Test Bank to the six general knowledge and skill guidelines in the AACSB standards.

The statements contained in Organizational Behavior, Eighth Edition, are provided only as a guide for the users of this textbook. The AACSB leaves content coverage and assessment within the purview of individual schools, the mission of the school, and the faculty. While Organizational Behavior and the teaching package make no claim of any specific AACSB qualification or evaluation, we have within Organizational Behavior labeled selected questions according to the six general knowledge and skill areas.

Ebook Options Ebooks are an innovative way for students to save money and to “go green.” McGraw-Hill’s ebooks are typically 40% off the bookstore price. Students have the choice between an online and a downloadable CourseSmart ebook.

Through CourseSmart, students have the flexibility to access an exact replica of their textbook from any computer that has Internet service, without plug-ins or special software, via the online version, or to create a library of books on their hard drive via the down- loadable version. Access to the CourseSmart ebooks lasts for one year.

Features CourseSmart ebooks allow students to highlight, take notes, organize notes, and share the notes with other CourseSmart users. Students can also search for terms across all ebooks in their purchased CourseSmart library. CourseSmart ebooks can be printed (five pages at a time).

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organizational behavior

chapter le

ar ni

ng o

bj ec

tiv es After studying this chapter, you should be able to:

1-1 Define organizational behavior and organizations, and discuss the importance of this field of inquiry.

1-2 Debate the organizational opportunities and challenges of technological change, globalization, emerging employment relationships, and workforce diversity.

1-3 Discuss the anchors on which organizational behavior knowledge is based.

1-4 Compare and contrast the four perspectives of organizational effectiveness.

fter completing an international MBA, Megan Kates joined Anheuser-Busch InBev (InBev), the world’s largest brewer, as a brand manager in its Mexican operations. Kates, who previously held a marketing job in Miami for French jeweler Cartier, was assigned the premium European

import brew, Stella Artois. Later, she was handed additional responsibilities throughout

Mexico for Michelob Ultra and Budweiser. “[InBev] basically handed me a brand and told

me to run with it,” says Kates. “It’s a very lean company.”

As one of the world’s most admired organizations, Anheuser-Busch InBev has a high-

performance culture that continually challenges employees to develop their potential. The

Belgium-based brewer instills an owner-like commitment by giving Megan Kates and other

staff deep responsibility and autonomy to run their part of the business. “We create

restaurant owners, not waiters,” explains an InBev manager.

1 Introduction to the Field of Organizational Behavior

A

2

AB InBev applies high-performance work practices and other organizational behavior strategies to become one of the world’s most successful companies.

© David Hecker/AP Images

PART 1: INTRODUCTION

InBev’s performance culture eschews complacency. “We set ourselves stretch targets and are never

completely satisfied with our results,” says one of the firm’s 10 guiding principles. The company regularly

takes people out of their comfort zones by transferring them to new positions with increasing

responsibilities and challenges. “I never get to that stage of being bored and looking elsewhere,” says a

British InBev manager who currently works at the brewer’s offices in Belgium.

As Megan Kates observes, InBev is a very lean company. Its industry-leading profit margins result from a

relentless drive for operational efficiency through practices that continually drive out waste. It applies

zero-based budgeting, so costs must be justified annually. InBev is also famously frugal. The brewer avoids

many executive perks (no cars or golf memberships), allows business class travel only for long-haul flights,

and has moderately priced office decor.1

3

4 Part One Introduction

Welcome to the Field of Organizational Behavior! High-performance work practices. Values-driven organization. Motivating jobs. Inspira- tional leadership. These are just a few of the organizational behavior topics and practices that have made Anheuser-Busch InBev a successful organization in a highly competitive and dynamic environment. In every sector of the economy, organizations need to employ skilled and motivated people who can be creative, work in teams, and maintain a healthy lifestyle. They need leaders with foresight and vision, who support innovative work prac- tices, and make decisions that consider the interests of multiple stakeholders. In other words, the best companies succeed through the concepts and practices that we discuss in this organizational behavior book.

Our purpose is to help you understand what goes on in organizations. We examine the factors that make companies effective, improve employee well-being, and drive successful collaboration among coworkers. We look at organizations from numerous and diverse perspectives, from the deepest foundations of employee thoughts and behavior (personality, self-concept, attitudes, etc.) to the complex interplay between the organization’s structure and culture and its external environment. Along this journey, we emphasize why things happen and what you can do to predict and guide organizational events.

We begin this chapter by introducing you to the field of organizational behavior and explaining why it is important to your career and to organizations. This is followed by an overview of four major societal developments facing organizations: technological change, globalization, emerging employment relationships, and increasing workforce di- versity. We then describe four anchors that guide the development of organizational be- havior knowledge. The latter part of this chapter describes the “ultimate dependent variable” in organizational behavior by presenting the four main perspectives of organi- zational effectiveness. The chapter closes with an integrating model of organizational behavior, which serves as a road map to guide you through the topics in this book.

The Field of Organizational Behavior Organizational behavior (OB) is the study of what people think, feel, and do in and around organizations. It looks at employee behavior, decisions, perceptions, and emo- tional responses. It examines how individuals and teams in organizations relate to each other and to their counterparts in other organizations. OB also encompasses the study of how organizations interact with their external environments, particularly in the con- text of employee behavior and decisions. OB researchers systematically study these topics at multiple levels of analysis, namely, the individual, team (including interper- sonal), and organization.2

The definition of organizational behavior begs the question: What are organizations? Organizations are groups of people who work interdependently toward some purpose.3 Notice that organizations are not buildings or government-registered entities. In fact, many organizations exist with neither physical walls nor government documentation to confer their legal status. Organizations have existed for as long as people have worked together. Massive temples dating back to 3500 bc were constructed through the orga-

nized actions of multitudes of people. Craftspeople and merchants in ancient Rome formed guilds, complete with elected managers. More than 1,000 years ago, Chinese factories were producing 125,000 tons of iron each year.4

One key feature of all organizations throughout his- tory is that they are collective entities.5 They consist of human beings—typically, but not necessarily,

1-1

organizational behavior (OB) the study of what people think, feel, and do in and around organizations

organizations groups of people who work interdependently toward some purpose

Chapter One Introduction to the Field of Organizational Behavior 5

employees—who interact with each other in an organized way. This organized rela- tionship requires some minimal level of communication, coordination, and collabo- ration to achieve organizational objectives. As such, all organizational members have degrees of interdependence; they accomplish goals by sharing materials, infor- mation, or expertise with coworkers.

A second key feature of organizations is that their members have a collective sense of purpose. This collective purpose isn’t always well defined or agreed on. Most companies have vision and mission statements, but they are sometimes out of date or don’t describe what employees actually try to achieve. Still, imagine an organization without a collec- tive sense of purpose. It would be an assemblage of people without direction or unifying force. So, whether they are producing and marketing a premium beer at AB InBev or selling almost anything on the Internet at Amazon.com, people working in organizations do have some sense of collective purpose.

HISTORICAL FOUNDATIONS OF ORGANIZATIONAL BEHAVIOR Several events suggest that OB emerged as a distinct field throughout the 1940s.6 During that decade, a few researchers began describing their research as organizational (rather than sociological or psychological). And by the late 1940s, Harvard had changed the name of its MBA human relations course to “Organizational Behavior.”

Although the field of OB is recent, experts in other fields have been studying organi- zations for many centuries. The Greek philosopher Plato (400 bc) wrote about the es- sence of leadership, and the Chinese philosopher Confucius (500 bc) extolled the virtues of ethics and leadership. Economist Adam Smith (1770s) discussed the benefits of job specialization and division of labor. German sociologist Max Weber (early 1900s) wrote about rational organizations, the work ethic, and charismatic leadership. Industrial engineer Frederick Winslow Taylor (1910s) proposed systematic ways to organize work processes and motivate employees through goal setting and rewards.7

Political scientist Mary Parker Follett (1920s) offered new ways of thinking about constructive conflict, team dynamics, power, and leadership. Harvard professor Elton Mayo and his colleagues (1930s and 1940s) established the “human relations” school of

Steve Jobs orchestrated many of the greatest advances in our digital lifestyle and animation film over the past few decades. The cofounder of Apple and Pixar Animation Studios was renowned for his vision and persistence. Yet Jobs emphasized that great achievements also require the power of organizations. “A company is one of humanity’s most amazing inventions,” Jobs once explained. “It’s totally abstract. Sure, you have to build something with bricks and mortar to put the people in, but basically a company is this abstract construct we’ve invented, and it’s incredibly powerful.”8

© Tony Avelar/Bloomberg/Getty Images

6 Part One Introduction

management, which pioneered research on employee attitudes, formal team dynamics, informal groups, and supervisor leadership style. American executive and Harvard associate Chester Barnard (1930s) wrote insightful views regarding organizational communication, coordination, leadership and authority, organizations as open sys- tems, and team dynamics.9 This brief historical tour indicates that OB has been around for a long time; it just wasn’t organized into a unified discipline until around World War II.

WHY STUDY ORGANIZATIONAL BEHAVIOR? In all likelihood, you are reading this book as part of a required course in organiza- tional behavior. Apart from degree or diploma requirements, why should you learn the ideas and practices discussed in this book? After all, who ever heard of a career path leading to a “vice president of OB” or a “chief OB officer”? Our answer to this ques- tion begins with survey findings that students who have been in the workforce for some time typically point to OB as one of their most valuable courses. Why? Because they have learned through experience that OB does make a difference to one’s career success.10 There are three main reasons why OB theories and practices are important (see Exhibit 1.1):

Comprehend and Predict Workplace Events Every one of us has an in- herent drive to make sense of what is going on around us.11 This need is particularly strong in organizations because they are highly complex and ambiguous contexts that have a profound effect on our lives. The field of organizational behavior uses scien- tific research to discover systematic relationships, which give us a valuable founda- tion for comprehending organizational life.12 This knowledge satisfies our curiosity about why events occur and reduces our anxiety about circumstances that would otherwise be unexpected and unexplained. Furthermore, it helps us predict and

• Satisfy curiosity • Reduce anxiety • Predict future events

Comprehend and predict work events

• Work well with others • Accomplish personal and org. goals

Influence organizational events

• Confirm and refine personal theories • Correct false common sense

Adopt more accurate personal theories

Why Study Organizational

Behavior?

EXHIBIT 1.1

Importance of Organizational Behavior

Chapter One Introduction to the Field of Organizational Behavior 7

anticipate future events so we can get along with others, achieve our goals, and mini- mize unnecessary career risks.

Adopt More Accurate Personal Theories A frequent misunderstanding is that OB is common sense. Of course, some OB knowledge is very similar to the theories you have developed through personal experience. But personal theories are usually not quite as precise as they need to be. Perhaps they explain and predict some situations, but not others. For example, one study found that when liberal arts students and chief execu- tive officers were asked to choose the preferred organizational structure in various situa- tions, their commonsense answers were typically wrong because they oversimplified well-known theory and evidence on that topic.13 (We discuss organizational structures in Chapter 13.) Throughout this book you’ll also discover that OB research has debunked some ideas that people thought were “common sense.” Overall, we believe the OB knowledge you will gain by reading this book will help you challenge and refine your personal theories, and give you more accurate and complete perspectives of organiza- tional events.

Influence Organizational Events Probably the greatest value of OB knowledge is that it helps us get things done in the workplace by influencing organizational events.14 By definition, organizations are people who work together to accomplish things, so we need a toolkit of knowledge and skills to work successfully with others. Studies consis- tently observe that the most important knowledge and skills that employers desire in em- ployees relate to the topics we discuss in this book, such as building teams, motivating coworkers, handling workplace conflicts, making decisions, and changing employee be- havior. No matter what career path you choose, you’ll find that OB concepts play an im- portant role in performing your job and working more effectively within organizations.

Organizational Behavior Is for Everyone Organizational behavior is dis- cussed by some writers as a topic for managers. Effective management does depend on OB concepts and practices, but this book pioneered the broader view that OB is valuable for everyone who works in and around organizations. Whether you are a software engineer, customer service representative, foreign exchange analyst, or chief executive officer, you need to understand and apply the many organizational behavior topics that are discussed in this book. In fact, OB knowledge is probably more valuable than ever before because employees increasingly need to be proactive, self- motivated, and able to work effectively with coworkers without management inter- vention. In the words of one forward-thinking OB writer more than four decades ago: Everyone is a manager.15

OB and the Bottom Line Up to this point, our answer to the question “Why study OB?”