Organizational behavior kinicki fugate pdf

key concepts, skills & best practices

Angelo Kinicki Mel FugateKinicki

Fugate

organizational behavior key co

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p ts, skills &

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st p ractice

s ISBN 978-0-07-813720-4 MHID 0-07-813720-9

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fifth edition

key concepts, skills & best practices

organizational behavior

Angelo Kinicki Arizona State University

Mel Fugate Southern

Methodist University

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ORGANIZATIONAL BEHAVIOR: KEY CONCEPTS, SKILLS AND BEST PRACTICES

Published by McGraw-Hill/Irwin, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY, 10020. Copyright © 2012, 2009, 2008, 2006, 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Printed in the United States of America. 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 978-0-07-813720-4 MHID 0-07-813720-9

Vice president and editor-in-chief: Brent Gordon Editorial director: Paul Ducham Executive editor: Michael Ablassmeir Executive director of development: Ann Torbert Development editor: Kelly I. Pekelder Editorial coordinator: Andrea Heirendt Vice president and director of marketing: Robin J. Zwettler Marketing director: Amee Mosley Executive marketing manager: Anke Braun Weekes Marketing specialist: Elizabeth Steiner Vice president of editing, design, and production: Sesha Bolisetty Senior project manager: Dana M. Pauley Buyer II: Debra R. Sylvester Senior designer: Matt Diamond Senior photo research coordinator: Jeremy Cheshareck Photo researcher: Editorial Image, LLC Senior media project manager: Greg Bates Media project manager: Suresh Babu, Hurix Systems Pvt. Ltd. Cover design: Pam Verros Typeface: 10.5/12 Times Roman Compositor: Laserwords Private Limited Printer: R. R. Donnelley

Library of Congress Cataloging-in-Publication Data Kinicki, Angelo. Organizational behavior : key concepts, skills & best practices / Angelo Kinicki, Mel Fugate.—5th ed. p. cm. Includes index. ISBN-13: 978-0-07-813720-4 (alk. paper) ISBN-10: 0-07-813720-9 (alk. paper) 1. Organizational behavior. I. Fugate, Mel. II. Title. HD58.7.K5265 2012 658.3—dc23 2011032566

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With love, gratitude, and admiration to my best friend and wife, Joyce Kinicki. Your support and love has helped me in more ways than you will ever know. Thank you for helping make dreams come true!

—AK

With love and appreciation to my dear wife, Donna. She and my wonderful family support me in everything I do. I am incredibly fortunate to have all of them in my life—thank you!

—MF

DEDICATION

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ABOUT THE AUTHORS

Angelo Kinicki, pictured on the right, is a professor, author, and consultant. He is a professor of management and is the recipient of the Weatherup/ Overby Chair in Leadership. He also is a Dean’s Council of 100 Distinguished Scholar at the W P Carey School of Business. He joined the faculty in 1982, the year he received his doctorate in business administration from Kent State University. His primary research interests include leadership, organiza- tional culture, organizational change,

and multilevel issues associated with predicting organizational effectiveness. Angelo has published more than 90 articles in a variety of academic jour- nals and is coauthor of seven textbooks (25 including revisions) that are used by hundreds of universities around the world. Several of his books have been translated into multiple languages.

Angelo is an award-winning researcher and teacher. He has

received several awards, including a best research paper award from the Organizational Behavior (OB) divi- sion of the Academy of Management, the All Time Best Reviewer Award (1996–99) and the Excellent Reviewer Award (1997–98) from the Academy of Management Journal, and six teaching awards from Arizona State University (Outstanding Teaching Award—MBA and Master’s Program, John W Teets Outstanding Graduate Teacher Award (2x), Outstanding Undergraduate

Teaching Excellence Award, Outstand- ing Graduate Teaching Excellence Award, and Outstanding Executive Development Teaching Excellence Award). Angelo also has served on the editorial review boards for the Acad- emy of Management Journal, Personnel Psychology, the Journal of Management, and the Journal of Vocational Behavior. Angelo has been an active member of the Academy of Management, including

service as a representative at large for the Organizational Behavior division, member of the Best Paper Award com- mittee for both the OB and Human Resources (HR) divisions, chair of the committee to select the best publication in the Academy of Manage- ment Journal, and program committee reviewer for the OB and HR divisions.

Angelo also is a busy international consultant and is a principal at Kinicki and Associates Inc., a management consulting firm that works with top management teams to create organiza- tional change aimed at increasing orga- nizational effectiveness and profitability. He has worked with many Fortune 500 firms as well as numerous entrepre- neurial organizations in diverse indus- tries. His expertise includes facilitating strategic/operational planning sessions, diagnosing the causes of organizational and work-unit problems, conducting organizational culture interventions, implementing performance manage- ment systems, designing and imple- menting performance appraisal systems, developing and administering surveys to assess employee attitudes, and lead- ing management/executive education programs. He developed a 360-degree leadership feedback instrument called the Performance Management Lead- ership Survey (PMLS) that is used by companies throughout the United States and Europe. The survey is used to assess an individual’s leadership style and to coach individuals interested in developing their leadership skills.

Angelo and his wife, Joyce, have enjoyed living in the beautiful Arizona desert for 30 years and are natives of Cleveland, Ohio. They enjoy traveling,

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About the Authors vii

golfing, hiking, spoiling Nala, their golden retriever, and spending time in the White Mountains.

Mel Fugate is a professor and con- sultant. He is an associate professor of Management and Organizations and Dunlevy Fellow in the Cox School of Business at Southern Methodist Uni- versity. He teaches executive, MBA, and undergraduate courses. Prior to the Cox School he was a visiting assistant professor of Organizational Behavior at Tulane University’s A.B. Freeman College of Business. He also has international teaching experience (e.g., International MBA) at EM Lyon Graduate School of Management in Lyon, France. Prior to earning his Ph.D. in Business Administration and Man- agement from Arizona State University, Mel performed consulting services in marketing and business development and was a sales representative and manager in the pharmaceutical indus- try. He also has a BS in engineering and business administration from Michigan State University.

Mel’s primary research inter- ests involve employee reactions to

organizational change and transitions at work. This includes but is not limited to downsizings, mergers and acquisitions, restructurings, and plant closings. He investigates employees’ change-related cognitive appraisals, emotions, coping efforts, and with- drawal. Another research stream involves the development of a disposi- tional perspective of employability and its implications for employee careers and behavior. Current interests also include the influence of leadership and organizational culture on performance and the influence of emotions on behavior at work. He has published in and reviewed for a number of premier management and applied psychol- ogy journals, such as the Academy of Management Journal, Academy of Management Review, Journal of Applied Psychology, Journal of Occupational and Organizational Psychology, Journal of Vocational Behavior, and Personnel Psychology. He also served on the editorial boards of Personnel Psychol- ogy and the Journal of Leadership and Organizational Studies. Mel’s research and comments have been featured in numerous media outlets: The Wall

Street Journal, The New York Times, Finan- cial Times, Dallas Morning News, CNN, Fox, ABC, and NBC.

His consulting work aims to enhance individual and organizational performance by utilizing a variety of practical, research-based tools related to leadership and management devel- opment, performance management, motivation, strategic talent manage- ment, organizational culture, compen- sation, and exceptional client service. Mel’s consulting and research covers many industries (e.g., legal, energy, healthcare, information technology, and financial services). His research and consulting often overlap in the area of change management, where he assists managers in developing, imple- menting, and evaluating change initia- tives designed to enhance employee performance and organizational competitiveness, including the integra- tion and realignment of organizational cultures.

Mel and his wife, Donna, are both very active and enjoy fitness, trav- eling, live music, and catering to their sweet, savage Jack Russell “Terror,” Scout Dog.

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preface The fifth edition was an important transition in the life of this textbook. It represented the end of Bob Kreit- ner’s role as a coauthor. Bob is a great friend and a tremendous coauthor who played a major role in crafting this book into its present form. We thank Bob for this contribution. At the same time, the fifth edition is the start of Mel Fugate’s tenure as a coauthor.

Mel was chosen to work on this book because he has a long track record of excellent performance across multiple professional roles. He has published over 20 academic arti- cles in journals and books, he received three teaching awards from the Cox School of Business at Southern Meth- odist University, and he served on the review boards for two academic journals. Mel also brings a fresh new perspective to the book and he teaches organizational behavior to both under- graduate and graduate students. His enthusiasm and passion for teaching and researching organizational behav- ior will surely improve this text for both students and professors.

In our many years of teaching organizational behavior, management, and leadership to undergraduate and graduate students in various coun- tries, we never had a student say, “I want a longer, more expensive text- book with more chapters.” We got the

message! Indeed, there is a desire for shorter and less expensive textbooks in today’s fast-paced world where overload and tight budgets are a way of life. Within the field of organiza- tional behavior, so-called “essentials” texts have attempted to satisfy this need. Too often, however, brevity has been achieved at the expense of up- to-date examples, artful layout, and learning enhancements. We believe “brief ” does not have to mean short- changed, outdated, and boring.

New Standard Kinicki and Fugate’s Organizational Behavior: Key Concepts, Skills & Best Practices, fifth edition, repre- sents a new standard in OB essentials textbooks. The following guiding philosophy inspired our quest for this new standard: “Create a short, up-to- date, practical, user-friendly, interest- ing, and engaging introduction to the field of organizational behavior.” You therefore will find this book to be a lean and efficient coverage of topics recommended by the accreditation organizations AACSB International and ACBSP, all conveyed with peda- gogical features found in full-length OB textbooks. Among those pedagogi- cal enhancements are current, real-life chapter-opening cases, a rich array

of contemporary in-text examples, a strong skills emphasis including Skills & Best Practices boxes throughout the text, at least one interactive exercise integrated into each chapter, a new back to the chapter-opening case fea- ture that has students apply the text to a chapter’s opening case, an appealing four-color presentation, interesting captioned photos, instructive chapter summaries, and chapter-closing Legal/ Ethical Challenge exercises.

Efficient and Flexible Structure The 16 chapters in this text are read- ily adaptable to traditional 15-week semesters, 10-week terms, various module formats, summer and inter- sessions, management development seminars, and distance learning programs via the Internet. The book begins with coverage of important topics—such as ethics, international OB, and managing diversity. The topical flow of the text then moves from micro (individuals) to macro (groups, teams, and organizations). Mixing and matching chapters (and topics within each chapter) in various combinations is not only possible but strongly encouraged to create opti- mum teaching/learning experiences.

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Preface ix

and counterproductive work behavior. Updated research on the impact of stereotypes and diversity within teams. New examples to illustrate the funda- mental attribution bias, self-serving bias, companies that effectively man- age diversity, and companies that use R. Roosevelt Thomas’s generic action options for managing diversity. Updated statistics regarding demographic char- acteristics of the U.S. workforce and a new Table 4-2 that summarizes genera- tional differences among employees. A new hands-on exercise that measures students’ attitude toward diversity. New and updated material regarding the managerial implications of managing diversity. New chapter-opening case and legal/ethical challenge. New key term: implicit cognition

Chapter 5 This chapter is now organized along a continuum, based on the degree to which individual differ- ences are fixed versus flexible: intelligence, ability, personality, core self-evaluations, attitudes, and emotions, respectively. This is illus- trated in a new Figure 5-1. A new section is devoted to the concept of core self-evaluations (comprised of self-esteem, self-efficacy, locus of control, and emotional stability). Updated research on proactive per- sonality and the use of personality tests. New research and examples for attitudes. Research and recom- mendations related to emotions and emotional intelligence are revised. Emotional contagion and emotional labor material is updated. The new chapter-opening case focuses on Mark Zuckerberg of Facebook. A new legal/ethical challenge.

Chapter 6 A new integrated model of motiva- tion (Figure 6-1) provides a founda- tion for understanding the theories covered in Chapters 6 and 7. A new/ revised section on job design covers the new approaches of job crafting

Chapter 1 New structure for the chapter. New material and perspectives on building social and human capital (Table 1-3). An expanded and updated section on on e-business and its implications for OB and managing people. A new sec- tion on corporate social responsibility and ethics includes suggestions on how to confront unethical behavior at work. Figure 1-4 provides a new model for OB and roadmap for the book. A new chapter-opening case based on Google, and a new legal/ethical challenge.

Chapter 2 Updated statistics regarding the four functions of organizational culture at Southwest Airlines. New organizational examples to illustrate four types of organizational culture. New Figure 2-4 that summarizes recent meta-analytic results regarding the relationship between organizational culture and organizational effectiveness. New examples to illustrate the 11 ways man- agers can change organizational culture. New examples to illustrate socialization techniques and mentoring along with updated research. New chapter opening case and legal/ethical challenge.

Chapter 3 New material on global mind-sets. Updated section on merging societal and organizational cultures includes current examples and a “how to” guide for becoming an “ambicultural manager.” Updated research related to Hofstede and GLOBE studies. Provides new research and recommen- dations for successful foreign assign- ments and repatriation. Two new key terms—emotional and informational support. Chapter-opening case based on Tata Consultancy Services and the legal/ethical challenge are new.

Chapter 4 New coverage of how the “negativ- ity bias” influences perceptions and the relationship between perception

A Solid Base of Fresh and Relevant Source Material Wise grocery shoppers gauge the freshness of essential purchases such as bread and milk by checking the “sell by” dates. OB textbooks similarly need to be checked for freshness to ensure the reader’s time is well spent on up-to-date and rel- evant theory, research, and practical examples. The fifth edition is filled with current and relevant examples from both research and practice per- spectives. You will find about 339 and 171 chapter endnotes dated 2010 and 2011, respectively, indicating a thorough updating of this new edi- tion. Our continuing commitment to a timely and relevant textbook is evidenced by the 14 (88%) new chapter-opening cases. These cases highlight male and female role models and large and small public and private organizations around the world. Among the diverse array of organizations featured are Google, Chrysler, Tata Consultancy, the U.S. Navy, Facebook, British Petroleum, and HCL Technologies.

Every chapter contains a host of recent practical examples that high- light the application of OB theory and research. More in-depth exam- ples are featured in boxed material labeled Skills & Best Practices. The fifth edition contains 50 (81%) new Skills & Best Practices boxes from timely 2010 and 2011 material.

New and Improved Coverage Our readers and reviewers have kindly told us how much they appreciate our efforts to keep this textbook up-to- date and relevant. Toward that end, you will find the following important new and significantly improved cov- erage in the fifth edition:

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x Preface

and idiosyncratic deals. Table 6-1 outlines approaches for job crafting. A new major section on employee engagement discusses the causes and consequences of engagement and includes a new hands-on exercise measuring student engagement. New section on dual career ladders. New key terms: job crafting, idiosyncratic deals, employee engagement, PE fit, and dual career ladders.

Chapter 7 The latest research on equity theory is discussed and new examples illustrate its six key practical applications. The latest research on expectancy theory is reviewed and new examples are used to demonstrate the theory’s applica- tion. Goal setting research is updated and new examples document its prac- tical use. New chapter- opening case and legal/ethical challenge.

Chapter 8 The most current research and practical guidance on feedback is provided, such as “How to Respond to a Negative Performance Review” and how to provide “upward feed- back.” Organizational rewards were updated to include the concept of “total rewards.” New research and guidance are provided for alternatives to money and promotions. Research is updated on pay-for-performance programs. Section on reinforcement is modified and presented differently. Figure 8-4 is a new illustration of reinforcement schedules. Both the chapter-opening case on Sprint and the legal/ethical challenge are new.

Chapter 9 Material related to group functions, development, and roles is updated with new examples. Latest research on trust is discussed and includes new recom- mendations for building it with others. Section on teamwork competencies and being a team player is revised and updated. Team building cover- age is refreshed with new research

and recommendations. New research and examples for cross-functional and virtual teams. A new section on facilitators of team effectiveness. New key terms: team adaptive capacity, team charters, team composition, and team performance strategies. The new chapter-opening case uses Geisinger Health System as an example. Legal/ ethical challenge is new.

Chapter 10 New discussion of the rational model of decision making, including a new Figure 10-1, and updated research on decision making models. New exam- ples illustrate decision making biases, and new major section on evidence- based decision making (EBDM). The latest research on intuition is reviewed and new examples demon- strate its application. New section regarding the practical application of creativity. New section discussing a road-map to ethical decision making, including a decision tree for making ethical decisions. Updated research and examples regarding group deci- sion-making. New chapter-opening case and legal/ethical challenge. New key terms: decision tree, evidence based decision making (EBDM), and opportunity.

Chapter 11 The discussion, research, and examples related to functional v. dysfunctional conflict are updated. Research and advice for dealing with/avoiding conflicts is reviewed. Particular attention is given to workplace incivility (e.g., bullying). Recent research and recommenda- tions for dealing with intergroup conflict are provided. A new section on work-family conflict includes the most recent research and guid- ance. Specific guidance is given for implementing alternative dispute resolution (ADR). Recent Added- Value Negotiation (AVN) literature is reviewed and practical implications discussed. The new chapter-opening

case highlights the role of profes- sional legal managers in companies. New legal/ethical challenge. New key terms: economic value, subjec- tive value, and work-family conflict.

Chapter 12 A “how to” guide is provided for communication in job interviews. New research and examples for interpersonal (verbal and non-verbal) communications. A new section related to gender and generational communication differences and chal- lenges includes research and recom- mendations. A new section focuses on information communication technologies (ICT) and their implica- tions for OB, productivity, managing teleworkers, and the advantages and disadvantages associated with social media at work (e.g., using Facebook in your professional life). The new chapter-opening case involves Brian Dunn, the CEO of Best Buy, and his experiences and views on social media. A new legal/ethical challenge focuses on criticizing coworkers/ managers/employers in social media. New key term: social media.

Chapter 13 Research and practice are updated for nine influence tactics. Current research, examples, and applications for the five bases of power are dis- cussed, especially coercive, expert, and referent. Updated research and examples on employee empower- ment. The scope of the organizational politics discussion is broadened to more appropriately include both negative and positive implications. A new section is included for impres- sion management with advice on avoiding and managing bad impres- sions. New chapter-opening case involves Raj Gupta, former CEO of specialty chemical company Rohm & Hass. Legal/ethical challenge focuses on the influence of an elite group of bankers that control the derivatives markets.

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Preface xi

Chapter 14 New discussion of implicit leadership theory and a new section discusses traits possessed by bad leaders. New summary Table 14-1 of positive traits associated with leadership emergence and new sections review the take- aways of Fiedler’s and House’s mod- els of leadership. Two new sections cover the practical application of situational-based theories. Research on transformational leadership and emerging theories was updated, and new examples were used to illustrate these theories’ practical applications. Expanded discussion of the role of followers, and new chapter-opening case and legal/ethical challenge are used. New key term: implicit leader- ship theory.

Chapter 15 New overview of organizational design and new examples to illustrate the various forms of design used by organizations. New examples of mechanistic and organic organiza- tions. New examples used to illus- trate the application of the various generic effectiveness criteria within organizations. New chapter-opening case and legal/ethical challenge. New key term: organizational design.

Chapter 16 New updated material and examples of the external forces of change, including a new section on the social and political pressures for change. All new material on the internal forces of change. New examples

used to illustrate a systems model of change as well as Lewin and Kot- ter’s models of change. Material on organizational development (OD) was revamped, including a new section and Figure 16-2 to explain how OD is put into practice. New examples are used to highlight the 11 reasons people resist change. A completely revised section with new examples on strategies for overcom- ing resistance to change was written. Material on creating a learning orga- nization is almost totally rewritten and includes a new Table 16-3 that outlines the reasons organizations do not learn from failure, and a new section on how to learn from suc- cess. New chapter-opening case. New key terms: change agent and resilience to change.