Short case study on organizational behavior ppt

Chapter 5 PPT Presentation

Management, Business Communication, and Intro to Business

BEFORE CLASS

AFTER CLASS DURING

CLASS

Decision Sims, Videos, and Learning

Catalytics

DSMs, pre-lecture homework,

eText

Writing Space, Video

Cases, Quizzes/ Tests

MyLab

Critical Thinking

MyManagementLab®: Improves Student Engagement Before, During, and After Class

Decision Making

BREAKTHROUGH

Prep and Engagement

BREAK THRO

UGH

To better resultsTo better results

• Personal Inventory Assessments (PIA) – NEW! Online questionnaires designed to promote self- reflection and engagement in students, because students learn better when they can connect what they are learning to their personal experience. Student results include a written explanation along with a graphic display that shows how their results compared to the class as a whole. Instructors will also have access to this graphic representation of results to promote classroom discussion.

• NEW! VIDEO LIBRARY – Robust video library with over 100 new book-specific videos that include easy-to-assign assessments, the ability for instructors to add YouTube or other sources, the ability for students to upload video submissions, and the ability for polling and teamwork.

• Decision-making simulations – NEW and improved feedback for students. Place your students in the role of a key decision-maker! Simulations branch based on the decisions students make, providing a variation of scenario paths. Upon completion students receive a grade, as well as a detailed report of the choices and the associated consequences of those decisions.

• Video exercises – UPDATED with new exercises. Engaging videos that bring business concepts to life and explore business topics related to the theory students are learning in class. Quizzes then assess students’ comprehension of the concepts covered in each video.

• Learning Catalytics – A “bring your own device” student engagement, assessment, and classroom intelligence system helps instructors analyze students’ critical-thinking skills during lecture.

• Dynamic Study Modules (DSMs) – UPDATED with additional questions. Through adaptive learning, students get personalized guidance where and when they need it most, creating greater engagement, improving knowledge retention, and supporting subject-matter mastery. Also available on mobile devices.

• Writing Space – UPDATED with new commenting tabs, new prompts, and a new tool for students called Pearson Writer. A single location to develop and assess concept mastery and critical thinking, the Writing Space offers automatic graded, assisted graded, and create your own writing assignments, allowing you to exchange personalized feedback with students quickly and easily.

Writing Space can also check students’ work for improper citation or plagiarism by comparing it against the world’s most accurate text comparison database available from Turnitin.

http://www.pearsonmylabandmastering.com

Organizational Behavior

This page intentionally left blank

Boston Columbus Indianapolis New York San Francisco Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo

Stephen P. Robbins —San Diego State University

Timothy A. Judge —University of Notre Dame

E D I T I o N

Organizational Behavior

17

Vice President, Business Publishing: Donna Battista Editor-in-Chief: Stephanie Wall Senior Acquisitions Editor: Kris Ellis-Levy Development Editor: Elisa Adams Editorial Assistant: Lauren Russell Vice President, Product Marketing: Maggie Moylan Director of Marketing, Digital Services and Products: Jeanette Koskinas Executive Field Marketing Manager: Adam Goldstein Field Marketing Manager: Lenny Ann Kucenski Product Marketing Assistant: Jessica Quazza Team Lead, Program Management: Ashley Santora Program Manager: Sarah Holle Team Lead, Project Management: Jeff Holcomb Project Manager: Kelly Warsak Operations Specialist: Carol Melville

Creative Director: Blair Brown Art Director: Janet Slowik Vice President, Director of Digital Strategy and Assessment: Paul Gentile Manager of Learning Applications: Paul DeLuca Digital Editor: Brian Surette Director, Digital Studio: Sacha Laustsen Digital Studio Manager: Diane Lombardo Digital Studio Project Manager: Monique Lawrence Digital Studio Project Manager: Alana Coles Digital Studio Project Manager: Robin Lazrus Full-Service Project Management, Composition, Interior Design, Cover Design: Integra Cover Art: Shutterstock Printer/Binder: Courier Kendallville Cover Printer: Phoenix Color/Hagerstown

Microsoft and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published as part of the services for any purpose. All such documents and related graphics are provided “as is” without warranty of any kind. Microsoft and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all warranties and conditions of merchantability, whether express, implied or statutory, fitness for a particular purpose, title and non-infringement. In no event shall Microsoft and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from the services.

The documents and related graphics contained herein could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Microsoft and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time. Partial screen shots may be viewed in full within the software version specified.

Microsoft® and Windows® are registered trademarks of the Microsoft Corporation in the U.S.A. and other countries. This book is not sponsored or endorsed by or affiliated with the Microsoft Corporation.

Copyright © 2017, 2015, 2013 by Pearson Education, Inc. or its affiliates. All Rights Reserved. Manufactured in the United States of America. This publication is protected by copyright, and permission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise. For information regarding permissions, request forms, and the appropriate contacts within the Pearson Education Global Rights and Permissions department, please visit www.pearsoned.com/permissions/.

PEARSoN, ALWAYS LEARNING, and MYMANAGEMENTLAB® are exclusive trademarks owned by Pearson Education, Inc. or its affiliates in the U.S. and/or other countries.

Unless otherwise indicated herein, any third-party trademarks, logos, or icons that may appear in this work are the property of their respective owners, and any references to third-party trademarks, logos, icons, or other trade dress are for demonstrative or descriptive purposes only. Such references are not intended to imply any sponsorship, endorsement, authorization, or promotion of Pearson’s products by the owners of such marks, or any relationship between the owner and Pearson Education, Inc. or its affiliates, authors, licensees, or distributors.

Library of Congress Cataloging-in-Publication Data Robbins, Stephen P. organizational behavior/Stephen P. Robbins, Timothy A. Judge.—17 Edition. pages cm Revised edition of organizational behavior, 2015. Includes bibliographical references and index. ISBN 978-0-13-410398-3 1. organizational behavior. I. Judge, Tim. II. Title. HD58.7.R62 2017 658.3—dc23 2015035516

10 9 8 7 6 5 4 3 2 1

ISBN 10: 0-13-410398-X ISBN 13: 978-0-13-410398-3

Acknowledgments of third-party content appear on the appropriate page within the text.

http://www.pearsoned.com/permissions/
v

Brief Contents

The Group

9 Foundations of Group Behavior 274 10 Understanding Work Teams 310 11 Communication 342 12 Leadership 380 13 Power and Politics 420 14 Conflict and Negotiation 456 15 Foundations of organization Structure 490

Preface xxv

Introduction

1 What Is organizational Behavior? 2

1

2

3

The Individual

2 Diversity in organizations 40 3 Attitudes and Job Satisfaction 72 4 Emotions and Moods 100 5 Personality and Values 134 6 Perception and Individual Decision Making 168 7 Motivation Concepts 206 8 Motivation: From Concepts to Applications 242

vi BrIEF COnTEnTS

The Organization System

16 organizational Culture 524 17 Human Resource Policies and Practices 560 18 organizational Change and Stress Management 602

4

Appendix Research in Organizational Behavior 644

Comprehensive Cases 651

Glossary 665 Name Index 675 Organization Index 683 Subject Index 687

vii

Contents

Preface xxv

Introduction

1 What Is Organizational Behavior? 2 The Importance of Interpersonal Skills 5

Management and Organizational Behavior 6 Management Roles 7 • Management Skills 8 • Effective versus Successful Managerial Activities 9

Complementing Intuition with Systematic Study 11 Big Data 11 Myth or Science? Management by Walking Around Is the Most Effective Management 12

Disciplines That Contribute to the OB Field 15 Psychology 15 • Social Psychology 16 • Sociology 16 • Anthropology 16

There Are Few Absolutes in OB 16

Challenges and Opportunities for OB 17 Economic Pressures 18 • Continuing Globalization 18 • Workforce Demographics 19

Personal Inventory Assessments Multicultural Awareness Scale 20 Workforce Diversity 21 • Customer Service 21 • People Skills 21 • Networked Organizations 22 • Social Media 22 • Employee Well-Being at Work 22 • Positive Work Environment 23 • Ethical Behavior 24

An Ethical Choice Vacation Deficit Disorder 25 Coming Attractions: Developing an OB Model 26 An Overview 26 • Inputs 26 • Processes 27 • Outcomes 27

Career OBjectives What do I say about my termination? 29 Summary 32

Implications for Managers 32 Point/Counterpoint The Battle of the Texts 33

Questions for review 34 Experiential Exercise Managing the oB Way 34 Ethical Dilemma There’s a Drone in Your Soup 35 Case Incident 1 Apple Goes Global 35 Case Incident 2 Big Data for Dummies 36

1

P I A

viii COnTEnTS

The Individual

2 Diversity in Organizations 40 Diversity 43 Demographic Characteristics 43 • Levels of Diversity 44

An Ethical Choice Affirmative Action for Unemployed Veterans 45 Discrimination 45

Stereotype Threat 46 Personal Inventory Assessments Intercultural Sensitivity Scale 47 Discrimination in the Workplace 47

Biographical Characteristics 48 Age 48 Myth or Science? Bald Is Better 49 Sex 50 • Race and Ethnicity 51 • Disabilities 52 • Hidden Disabilities 53

Other Differentiating Characteristics 54 Tenure 54 • Religion 54 • Sexual Orientation and Gender Identity 55

Career OBjectives Is it okay to be gay at work? 56 Cultural Identity 57

Ability 57 Intellectual Abilities 58 • Physical Abilities 59

Implementing Diversity Management Strategies 60 Attracting, Selecting, Developing, and Retaining Diverse Employees 60 • Diversity in Groups 61 • Effective Diversity Programs 62

Summary 63

Implications for Managers 63 Point/Counterpoint Affirmative Action Programs Have outlived Their Usefulness 64

Questions for review 65 Experiential Exercise Differences 65 Ethical Dilemma Getting More Women on Board 65 Case Incident 1 Walking the Walk 66 Case Incident 2 The Encore Career 67

3 Attitudes and Job Satisfaction 72 Attitudes 75

Attitudes and Behavior 76

An Ethical Choice office Talk 77 Job Attitudes 78 Job Satisfaction and Job Involvement 78 • Organizational Commitment 78 • Perceived Organizational Support 78 • Employee Engagement 79 • Are These Job Attitudes Really All That Distinct? 80

2

P I A

COnTEnTS ix

Job Satisfaction 80 Measuring Job Satisfaction 80 • How Satisfied Are People in Their Jobs? 81

What Causes Job Satisfaction? 83 Job Conditions 83 • Personality 84

Personal Inventory Assessments Core Self Evaluation (CSE) Scale 84 Pay 84 • Corporate Social Responsibility (CSR) 85

Outcomes of Job Satisfaction 86 Job Performance 86 • Organizational Citizenship Behavior (OCB) 86 • Customer Satisfaction 87 • Life Satisfaction 87

Career OBjectives How can I make my job better? 88 The Impact of Job Dissatisfaction 88 Counterproductive Work Behavior (CWB) 89

Myth or Science? Happy Workers Means Happy Profits 91 Managers Often “Don’t Get It” 91

Summary 92

Implications for Managers 92 Point/Counterpoint Employer–Employee Loyalty Is an outdated Concept 93

Questions for review 94 Experiential Exercise What Satisfies You about Your Dream Job? 94 Ethical Dilemma Tell-All Websites 94 Case Incident 1 The Pursuit of Happiness: Flexibility 95 Case Incident 2 Job Crafting 96

4 Emotions and Moods 100 What Are Emotions and Moods? 103 The Basic Emotions 103

Myth or Science? Smile, and the Work World Smiles with You 104 Moral Emotions 104 • The Basic Moods: Positive and Negative Affect 105 • Experiencing Moods and Emotions 106 • The Function of Emotions 107

Sources of Emotions and Moods 108 Personality 108 • Time of Day 109 • Day of the Week 109 • Weather 109 • Stress 112 • Social Activities 112 • Sleep 112 • Exercise 112 • Age 112 • Sex 113

Emotional Labor 113

Affective Events Theory 115

Emotional Intelligence 115

An Ethical Choice Should Managers Use Emotional Intelligence (EI) Tests? 117 Personal Inventory Assessments Emotional Intelligence Assessment 117 Emotion regulation 118 Emotion Regulation Influences and Outcomes 118 • Emotion Regulation Techniques 118 • Ethics of Emotion Regulation 120

P I A

P I A

x COnTEnTS

OB Applications of Emotions and Moods 121 Selection 121 • Decision Making 121 • Creativity 122 • Motivation 122 • Leadership 122 • Negotiation 123 • Customer Service 123 • Job Attitudes 123

Career OBjectives How do I turn down the volume on my screaming boss? 124 Deviant Workplace Behaviors 124 • Safety and Injury at Work 125

Summary 125

Implications for Managers 125 Point/Counterpoint Sometimes Yelling Is for Everyone’s Good 126

Questions for review 127 Experiential Exercise The Happiness Test 127 Ethical Dilemma Data Mining Emotions 127 Case Incident 1 Crybabies 128 Case Incident 2 Tall Poppy Syndrome 129

5 Personality and Values 134 Personality 137 What Is Personality? 137

Career OBjectives How do I ace the personality test? 138 Personal Inventory Assessments Personality Style Indicator 139 Personality Frameworks 139 The Myers-Briggs Type Indicator 140 • The Big Five Personality Model 140 • The Dark Triad 144

Other Personality Attributes relevant to OB 146 Core Self-Evaluations (CSEs) 146 • Self-Monitoring 147

Myth or Science? We Can Accurately Judge Individuals’ Personalities a Few Seconds after Meeting Them 148

Proactive Personality 148

Personality and Situations 149 Situation Strength Theory 149 • Trait Activation Theory 150

Values 151 The Importance and Organization of Values 151 • Terminal versus Instrumental Values 152 • Generational Values 152

An Ethical Choice Do You Have a Cheating Personality? 153 Linking an Individual’s Personality and Values to the Workplace 153 Person–Job Fit 154 • Person–Organization Fit 154 • Other Dimensions of Fit 155

Cultural Values 156 Hofstede’s Framework 156 • The GLOBE Framework 158 • Comparison of Hofstede’s Framework and the GLOBE Framework 159

Summary 159

Implications for Managers 159 Point/Counterpoint Millennials Are More Narcissistic Than Their Parents 160

P I A

COnTEnTS xi

Questions for review 161 Experiential Exercise Your Best Self 161 Ethical Dilemma Millennial Job Hopping 162 Case Incident 1 on the Costs of Being Nice 162 Case Incident 2 The Power of Quiet 163

6 Perception and Individual Decision Making 168 What Is Perception? 171

Factors That Influence Perception 171

Person Perception: Making Judgments About Others 172 Attribution Theory 173

Career OBjectives So what if I’m a few minutes late to work? 175 Common Shortcuts in Judging Others 175 • Specific Applications of Shortcuts in Organizations 177

Myth or Science? All Stereotypes Are Negative 178 The Link Between Perception and Individual Decision Making 178

Decision Making in Organizations 179 The Rational Model, Bounded Rationality, and Intuition 179 • Common Biases and Errors in Decision Making 181

Influences on Decision Making: Individual Differences and Organizational Constraints 185 Individual Differences 185 • Organizational Constraints 187

What About Ethics in Decision Making? 188 Three Ethical Decision Criteria 188 • Lying 190

An Ethical Choice Choosing to Lie 191 Creativity, Creative Decision Making, and Innovation in Organizations 191 Creative Behavior 191 • Causes of Creative Behavior 193

Personal Inventory Assessments How Creative Are You? 194 Creative Outcomes (Innovation) 195 Summary 196

Implications for Managers 196 Point/Counterpoint Stereotypes Are Dying 197

Questions for review 198 Experiential Exercise Good Liars and Bad Liars 198 Ethical Dilemma Cheating Is a Decision 198 Case Incident 1 Too Much of a Good Thing 199 Case Incident 2 The Youngest Billionaire 200

7 Motivation Concepts 206 Motivation and Early Theories 209

Early Theories of Motivation 210 Hierarchy of Needs Theory 210 • Two-Factor Theory 211 • McClelland’s Theory of Needs 212

P I A

xii COnTEnTS

Career OBjectives Why won’t he take my advice? 214 Contemporary Theories of Motivation 214 Self-Determination Theory 215

Myth or Science? Helping others and Being a Good Citizen Is Good for Your Career 216

Goal-Setting Theory 216

Other Contemporary Theories of Motivation 219 Self-Efficacy Theory 220 • Reinforcement Theory 221 An Ethical Choice Motivated by Big Brother 222 Equity Theory/Organizational Justice 224 • Expectancy Theory 229 Personal Inventory Assessments Work Motivation Indicator 230 Job Engagement 231

Integrating Contemporary Theories of Motivation 231

Summary 233

Implications for Managers 233 Point/Counterpoint Goals Get You to Where You Want to Be 234

Questions for review 235 Experiential Exercise organizational Justice Task 235 Ethical Dilemma The New GPA 235 Case Incident 1 The Demotivation of CEo Pay 236 Case Incident 2 The Sleepiness Epidemic 237

8 Motivation: From Concepts to Applications 242 Motivating by Job Design: The Job Characteristics Model 245

The Job Characteristics Model 245

Job redesign 247 Job Rotation 247

Myth or Science? Money Can’t Buy Happiness 248 Relational Job Design 248 Personal Inventory Assessments Diagnosing the Need for Team Building 250

Alternative Work Arrangements 250 Flextime 250 • Job Sharing 252 • Telecommuting 253

Career OBjectives How can I get flextime? 254 Employee Involvement and Participation 256

Examples of Employee Involvement Programs 256

Using rewards to Motivate Employees 258 What to Pay: Establishing a Pay Structure 258 • How to Pay: Rewarding Individual Employees through Variable-Pay Programs 259

An Ethical Choice Sweatshops and Worker Safety 263

Using Benefits to Motivate Employees 264 Flexible Benefits: Developing a Benefits Package 264

P I A

P I A

COnTEnTS xiii

Using Intrinsic rewards to Motivate Employees 265

Employee Recognition Programs 265

Summary 266

Implications for Managers 266 Point/Counterpoint “Face-Time” Matters 267

Questions for review 268 Experiential Exercise occupations and the Job Characteristics Model 268 Ethical Dilemma Inmates for Hire 268 Case Incident 1 Motivation for Leisure 269 Case Incident 2 Pay Raises Every Day 269

3 The Group 9 Foundations of Group Behavior 274

Defining and Classifying Groups 277 Social Identity 277 • Ingroups and Outgroups 279 • Social Identity Threat 279

Stages of Group Development 279

Group Property 1: roles 280 Role Perception 281 • Role Expectations 281 • Role Conflict 282 • Role Play and Assimilation 282

Myth or Science? Gossip and Exclusion Are Toxic for Groups 283 Group Property 2: norms 284 Norms and Emotions 284 • Norms and Conformity 284

An Ethical Choice Using Peer Pressure as an Influence Tactic 285 Norms and Behavior 286 • Positive Norms and Group Outcomes 287 • Negative Norms and Group Outcomes 287 • Norms and Culture 289

Group Property 3: Status, and Group Property 4: Size and Dynamics 289 Group Property 3: Status 289 • Group Property 4: Size and Dynamics 291

Group Property 5: Cohesiveness, and Group Property 6: Diversity 293 Group Property 5: Cohesiveness 293 • Group Property 6: Diversity 293

Personal Inventory Assessments Communicating Supportively 294 Group Decision Making 295 Groups versus the Individual 295 • Groupthink and Groupshift 296

Career OBjectives Can I fudge the numbers and not take the blame? 297 Group Decision-Making Techniques 298

Summary 299

Implications for Managers 300 Point/Counterpoint People Are More Creative When They Work Alone 301

P I A

xiv COnTEnTS

Questions for review 302 Experiential Exercise Surviving the Wild: Join a Group or Go It Alone? 302 Ethical Dilemma Is Social Loafing Unethical? 303 Case Incident 1 The Calamities of Consensus 304 Case Incident 2 Intragroup Trust and Survival 305

10 Understanding Work Teams 310 Why Have Teams Become So Popular? 313

Differences Between Groups and Teams 313

Types of Teams 314 Problem-Solving Teams 315 • Self-Managed Work Teams 315 • Cross- Functional Teams 316 • Virtual Teams 317 • Multiteam Systems 317

An Ethical Choice The Size of Your Meeting’s Carbon Footprint 318 Creating Effective Teams 319 Team Context: What Factors Determine Whether Teams Are Successful? 320 • Team Composition 321 Myth or Science? Team Members Who Are “Hot” Should Make the Play 322 Career OBjectives Is it wrong that I’d rather have guys on my team? 325 Team Processes 326 Personal Inventory Assessments Team Development Behaviors 330 Turning Individuals into Team Players 330 Selecting: Hiring Team Players 330 • Training: Creating Team Players 330 • Rewarding: Providing Incentives to Be a Good Team Player 330

Beware! Teams Aren’t Always the Answer 331

Summary 332

Implications for Managers 332 Point/Counterpoint To Get the Most out of Teams, Empower Them 333

Questions for review 334 Experiential Exercise Composing the “Perfect” Team 334 Ethical Dilemma The Sum of the Team Is Less Than Its Members 334 Case Incident 1 Tongue-Tied in Teams 336 Case Incident 2 Smart Teams and Dumb Teams 336

11 Communication 342 Functions of Communication 345

Direction of Communication 347 Downward Communication 347 • Upward Communication 347 • Lateral Communication 348 • Formal Small-Group Networks 348 • The Grapevine 349

Modes of Communication 350 Oral Communication 350

Career OBjectives Isn’t this disability too much to accommodate? 353 Written Communication 354

P I A

COnTEnTS xv

Myth or Science? Today, Writing Skills Are More Important Than Speaking Skills 357

Nonverbal Communication 358 Personal Inventory Assessments Communication Styles 359 Choice of Communication Channel 359 Channel Richness 359 • Choosing Communication Methods 360 • Information Security 362

An Ethical Choice Using Employees in organizational Social Media Strategy 363 Persuasive Communication 363 Automatic and Controlled Processing 364

Barriers to Effective Communication 365 Filtering 365 • Selective Perception 365 • Information Overload 366 • Emotions 366 • Language 366 • Silence 367 • Communication Apprehension 367 • Lying 368

Cultural Factors 368 Cultural Barriers 368 • Cultural Context 369 • A Cultural Guide 370

Summary 371

Implications for Managers 371 Point/Counterpoint We Should Use Employees’ Social Media Presence 372

Questions for review 373 Experiential Exercise An Absence of Nonverbal Communication 373 Ethical Dilemma BYoD 374 Case Incident 1 organizational Leveraging of Social Media 375 Case Incident 2 PowerPoint Purgatory 375

12 Leadership 380 Trait Theories 383

Career OBjectives How can I get my boss to be a better leader? 385 Behavioral Theories 385 Summary of Trait Theories and Behavioral Theories 386

Contingency Theories 387 The Fiedler Model 387 • Situational Leadership Theory 388 • Path–Goal Theory 389 • Leader–Participation Model 389

Contemporary Theories of Leadership 390 Leader–Member Exchange (LMX) Theory 390 • Charismatic Leadership 391 • Transactional and Transformational Leadership 394

Myth or Science? Top Leaders Feel the Most Stress 396 Personal Inventory Assessments Ethical Leadership Assessment 399 responsible Leadership 399 Authentic Leadership 399 • Ethical Leadership 400

An Ethical Choice Holding Leaders Ethically Accountable 401 Servant Leadership 402

Positive Leadership 402

P I A

P I A

xvi COnTEnTS

Trust 402 • Mentoring 405

Challenges to Our Understanding of Leadership 406 Leadership as an Attribution 406 • Substitutes for and Neutralizers of Leadership 407 • Online Leadership 408 • Selecting Leaders 408 • Training Leaders 409

Summary 410

Implications for Managers 410 Point/Counterpoint CEos Start Early 411

Questions for review 412 Experiential Exercise What Is Leadership? 412 Ethical Dilemma Smoking Success 412 Case Incident 1 Leadership Mettle Forged in Battle 413 Case Incident 2 Leadership by Algorithm 414

13 Power and Politics 420 Power and Leadership 423

Bases of Power 424 Formal Power 424 • Personal Power 424 • Which Bases of Power Are Most Effective? 425

Dependence: The Key to Power 426 The General Dependence Postulate 426 • What Creates Dependence? 426 • Social Network Analysis: A Tool for Assessing Resources 427

Power Tactics 428 Using Power Tactics 429 • Cultural Preferences for Power Tactics 430 • Applying Power Tactics 430

How Power Affects People 430 Power Variables 431 • Sexual Harassment: Unequal Power in the Workplace 432

Politics: Power in Action 433 Definition of Organizational Politics 433 • The Reality of Politics 434

Causes and Consequences of Political Behavior 435 Factors Contributing to Political Behavior 435 Career OBjectives Should I become political? 437 Myth or Science? Powerful Leaders Keep Their (Fr)Enemies Close 439 How Do People Respond to Organizational Politics? 439 • Impression Management 440

An Ethical Choice How Much Should You Manage Interviewer Impressions? 443 The Ethics of Behaving Politically 444 Personal Inventory Assessments Gaining Power and Influence 445

Mapping Your Political Career 445 Summary 446

P I A

COnTEnTS xvii

Implications for Managers 447 Point/Counterpoint Everyone Wants Power 448 Questions for review 449 Experiential Exercise Comparing Influence Tactics 449 Ethical Dilemma How Much Should You Defer to Those in Power? 449 Case Incident 1 The Powerful Take All 450 Case Incident 2 Barry’s Peer Becomes His Boss 451

14 Conf lict and Negotiation 456 A Definition of Conflict 459 Types of Conflict 459 • Loci of Conflict 461

The Conflict Process 462 Stage I: Potential Opposition or Incompatibility 462 • Stage II: Cognition and Personalization 464 • Stage III: Intentions 464 • Stage IV: Behavior 466 • Stage V: Outcomes 467

negotiation 469 Bargaining Strategies 470

Myth or Science? Teams Negotiate Better Than Individuals in Collectivistic Cultures 473

The negotiation Process 473

Individual Differences in negotiation Effectiveness 475 Career OBjectives How can I get a better job? 476 An Ethical Choice Using Empathy to Negotiate More Ethically 477 negotiating in a Social Context 480 Third-Party Negotiations 481

Summary 482

Implications for Managers 482

Personal Inventory Assessments Strategies for Handling Conflict 482

Point/Counterpoint Pro Sports Strikes Are Caused by Greedy owners 483

Questions for review 484 Experiential Exercise A Negotiation Role-Play 484 Ethical Dilemma The Lowball Applicant 485 Case Incident 1 Disorderly Conduct 485 Case Incident 2 Twinkies, Rubber Rooms, and Collective Bargaining 486

15 Foundations of Organization Structure 490 What Is Organizational Structure? 493 Work Specialization 493 • Departmentalization 495 • Chain of Command 496 • Span of Control 497 • Centralization and Decentralization 498 • Formalization 499 • Boundary Spanning 499

P I A

xviii COnTEnTS

Common Organizational Frameworks and Structures 500 The Simple Structure 500 • The Bureaucracy 501 • The Matrix Structure 503

Alternate Design Options 504 The Virtual Structure 504 • The Team Structure 505 Career OBjectives What structure should I choose? 506 An Ethical Choice Flexible Structures, Deskless Workplaces 507 The Circular Structure 507 Personal Inventory Assessments organizational Structure Assessment 507 The Leaner Organization: Downsizing 508

Why Do Structures Differ? 509 Organizational Strategies 509 • Organization Size 511 • Technology 512 • Environment 512 • Institutions 513

Organizational Designs and Employee Behavior 513

Myth or Science? Employees Can Work Just as Well from Home 514 Summary 516

Implications for Managers 516 Point/Counterpoint The End of Management 517

Questions for review 518 Experiential Exercise The Sandwich Shop 518 Ethical Dilemma Post-Millennium Tensions in the Flexible organization 519 Case Incident 1 Creative Deviance: Bucking the Hierarchy? 519 Case Incident 2 Boeing Dreamliner: Engineering Nightmare or organizational Disaster? 520

The Organization System

16 Organizational Culture 524 What Is Organizational Culture? 527 A Definition of Organizational Culture 527 • Culture Is a Descriptive Term 527 • Do Organizations Have Uniform Cultures? 528

Myth or Science? An organization’s Culture Is Forever 529 Strong versus Weak Cultures 529 • Culture versus Formalization 530

What Do Cultures Do? 530 The Functions of Culture 530 • Culture Creates Climate 530 • The Ethical Dimension of Culture 531 • Culture and Sustainability 532 • Culture and Innovation 533 • Culture as an Asset 534 • Culture as a Liability 535

Creating and Sustaining Culture 537 How a Culture Begins 537 • Keeping a Culture Alive 537 • Summary: How Organizational Cultures Form 541

4

P I A

COnTEnTS xix

How Employees Learn Culture 541 Stories 541 • Rituals 541 • Symbols 542

An Ethical Choice A Culture of Compassion 543 Language 543

Influencing an Organizational Culture 544 An Ethical Culture 544 • A Positive Culture 544 • A Spiritual Culture 547

Career OBjectives How do I learn to lead? 549 The Global Context 549

Summary 551

Implications for Managers 551

Personal Inventory Assessments Comfort with Change Scale 551

Point/Counterpoint organizations Should Strive to Create a Positive organizational Culture 552

Questions for review 553 Experiential Exercise Greeting Newcomers 553 Ethical Dilemma Culture of Deceit 554 Case Incident 1 The Place Makes the People 555 Case Incident 2 Active Cultures 556

17 Human Resource Policies and Practices 560 recruitment Practices 563

Selection Practices 563 How the Selection Process Works 563 • Initial Selection 564

Substantive and Contingent Selection 566 Written Tests 566 • Performance-Simulation Tests 568 • Interviews 569 • Contingent Selection Tests 571

Training and Development Programs 571 Types of Training 571 • Training Methods 574 • Evaluating Effectiveness 575

Performance Evaluation 575 What Is Performance? 575 • Purposes of Performance Evaluation 576 • What Do We Evaluate? 576 • Who Should Do the Evaluating? 577 • Methods of Performance Evaluation 578 • Improving Performance Evaluations 579 • Providing Performance Feedback 581 Career OBjectives How do I fire someone? 582 International Variations in Performance Appraisal 583

The Leadership role of Hr 583 Communicating HR Practices 584 • Designing and Administering Benefit Programs 585 • Drafting and Enforcing Employment Policies 585

An Ethical Choice HIV/AIDS and the Multinational organization 586 Managing Work–Life Conflicts 587

Myth or Science? The 24-Hour Workplace Is Harmful 587

P I A

xx COnTEnTS

Mediations, Terminations, and Layoffs 588

Summary 590

Implications for Managers 590

Personal Inventory Assessments Positive Practices Survey 591

Point/Counterpoint Employers Should Check Applicant Criminal Backgrounds 592

Questions for review 593 Experiential Exercise Designing an Effective Structured Job Interview 593 Ethical Dilemma Are on-Demand Workers Really Employees? 594 Case Incident 1 Getting a Foot in the Door 595 Case Incident 2 You May Be Supporting Slavery 595

18 Organizational Change and Stress Management 602 Change 605 Forces for Change 605 • Planned Change 606

resistance to Change 607 Overcoming Resistance to Change 609 • The Politics of Change 611

Approaches to Managing Organizational Change 611 Lewin’s Three-Step Model 611 • Kotter’s Eight-Step Plan 612 • Action Research 613 • Organizational Development 613

Creating a Culture for Change 616 Managing Paradox 617 • Stimulating a Culture of Innovation 617 Creating a Learning Organization 619 • Organizational Change and Stress 620

Stress at Work 621 What Is Stress? 621 • Potential Sources of Stress at Work 623

Career OBjectives How can I bring my team’s overall stress level down? 625 Individual Differences 626 • Cultural Differences 627

Consequences of Stress at Work 628 Myth or Science? When You’re Working Hard, Sleep Is optional 629 Managing Stress 630 Individual Approaches 630 • Organizational Approaches 631

An Ethical Choice Manager and Employee Stress during organizational Change 632 Summary 634

Implications for Managers 634

Personal Inventory Assessments Tolerance of Ambiguity Scale 634

Point/Counterpoint Companies Should Encourage Stress Reduction 635

Questions for review 636 Experiential Exercise Mindfulness at Work 636 Ethical Dilemma All Present and Accounted For 637 Case Incident 1 Sprucing Up Walmart 638 Case Incident 2 When Companies Fail to Change 639

P I A

P I A

COnTEnTS xxi

Appendix Research in Organizational Behavior 644

Comprehensive Cases 651

Glossary 665 Name Index 675 Organization Index 683 Subject Index 687

This page intentionally left blank

xxiii

About the Authors

Stephen P. Robbins Education Ph.D., University of Arizona

Professional Experience Academic Positions: Professor, San Diego State University, Southern Illinois University at Edwardsville, University of Baltimore, Concordia University in Montreal, and University of Nebraska at Omaha.

Research: Research interests have focused on conflict, power, and politics in organizations; behavioral decision making; and the development of effective interpersonal skills.

Books Published: World’s best-selling author of textbooks in both management and organizational behavior. His books have sold more than 5 million copies and have been translated into 20 languages; editions have been adapted for Canada, Australia, South Africa, and India, such as these:

●● Essentials of Organizational Behavior, 12th ed. (Prentice Hall, 2014) ●● Management, 12th ed. with Mary Coulter (Prentice Hall, 2014) ●● Fundamentals of Human Resource Management, 10th ed., with David DeCenzo

(Wiley, 2010) ●● Prentice Hall’s Self-Assessment Library 3.4 (Prentice Hall, 2010) ●● Fundamentals of Management, 8th ed., with David DeCenzo and Mary

Coulter (Prentice Hall, 2013) ●● Supervision Today! 7th ed., with David DeCenzo and Robert Wolter

(Prentice Hall, 2013) ●● Training in Interpersonal Skills: TIPS for Managing People at Work, 6th ed.,

with Phillip Hunsaker (Prentice Hall, 2012) ●● Managing Today! 2nd ed. (Prentice Hall, 2000) ●● Organization Theory, 3rd ed. (Prentice Hall, 1990) ●● The Truth About Managing People, 2nd ed. (Financial Times/Prentice Hall,

2008) ●● Decide and Conquer: Make Winning Decisions and Take Control of Your Life

(Financial Times/Prentice Hall, 2004).

Other Interests In his “other life,” Dr. Robbins actively participates in masters’ track competi- tion. After turning 50 in 1993, he won 18 national championships and 12 world titles. He is the current world record holder at 100 meters (12.37 seconds) and 200 meters (25.20 seconds) for men 65 and over.

xxiv ABOUT THE AUTHOrS

Timothy A. Judge

Education Ph.D., University of Illinois at Urbana-Champaign

Professional Experience Academic Positions: Associate Dean for Faculty and Research, University of Notre Dame; Franklin D. Schurz Chair, Department of Management, Mendoza College of Business, University of Notre Dame; Concurrent Professor, Department of Psychology, University of Notre Dame; Visiting Distinguished Adjunct Professor of King Abdulaziz University, Saudi Arabia; Visiting Professor, Division of Psychology & Language Sciences, University College London; Matherly- McKethan Eminent Scholar in Management, Warrington College of Business Administration, University of Florida; Stanley M. Howe Professor in Leadership, Henry B. Tippie College of Business, University of Iowa; Associate Professor (with tenure), Depart- ment of Human Resource Studies, School of Industrial and Labor Relations, Cornell University; Lecturer, Charles University, Czech Republic, and Comenius University, Slovakia; Instructor, Industrial/Organizational Psychology, Depart- ment of Psychology, University of Illinois at Urbana-Champaign.

Research: Dr. Judge’s primary research interests are in (1) personality, moods, and emotions; (2) job attitudes; (3) leadership and influence behaviors; and (4) careers (person–organization fit, career success). Dr. Judge has published more than 154 articles on these and other major topics in journals such as Jour- nal of Organizational Behavior, Personnel Psychology, Academy of Management Jour- nal, Journal of Applied Psychology, European Journal of Personality, and European Journal of Work and Organizational Psychology. He serves as Director of Research for Stay Metrics Corporation, linking his research with application in the truck- ing industry.

Fellowship: Dr. Judge is a fellow of the American Psychological Association, the Academy of Management, the Society for Industrial and Organizational Psychology, and the American Psychological Society.

Awards: In 1995, Dr. Judge received the Ernest J. McCormick Award for Distinguished Early Career Contributions from the Society for Industrial and Organizational Psychology. In 2001, he received the Larry L. Cum- mings Award for mid-career contributions from the Organizational Behavior Division of the Academy of Management. In 2007, he received the Profes- sional Practice Award from the Institute of Industrial and Labor Relations, University of Illinois. In 2008, he received the University of Florida Doctoral Mentoring Award. And in 2012, he received the Editorial Board of the Euro- pean Journal of Work and Organizational Psychology (EJWOP) best paper of the year award.

Other Books Published: H. G. Heneman III, T. A. Judge, and J. D. Kammeyer- Mueller, Staffing Organizations, 8th ed. (Mishawaka, IN: Pangloss Industries, 2015).

Other Interests Although he cannot keep up (literally!) with Dr. Robbins’ accomplishments on the track, Dr. Judge enjoys golf, cooking and baking, literature (he’s a particular fan of Thomas Hardy and is a member of the Thomas Hardy Society), and keep- ing up with his three children, who range in age from adult to middle school.

xxv

Preface

Welcome to the seventeenth edition of Organizational Behavior! Long con- sidered the standard for all organizational behavior textbooks, this edition continues its tradition of making current, relevant topics come alive for students. While maintaining its hallmark features—engaging writing style, cutting-edge content, and intuitive pedagogy—this edition has been significantly updated to reflect the most recent research and current business events within the field of organizational behavior worldwide. The seven- teenth edition is one of the most contemporary revisions of Organizational Behavior we’ve undertaken, and while we’ve preserved the core relevant material, we’re confident that this edition reflects the most important issues facing organizations, managers, and employees today with a balanced, dis- cerning approach.

Key Changes to the Seventeenth Edition ●● NEW Feature in every chapter! Career OBjectives in advice, question-and-

answer format to help students think through issues they may face in the workforce today.

●● NEW Opening Vignette in every chapter to bring current business trends and events to the forefront.

●● NEW key terms presented in bold throughout the text (up to three new per chapter) highlight new vocabulary pertinent to today’s study of organiza- tional behavior.

●● NEW photos and captions in every chapter link the chapter content to contemporary real-life worldwide situations to enhance the student’s under- standing of hands-on application of concepts.

●● NEW These feature topics are either completely new or substantially updated within each chapter as applicable to reflect ongoing challenges in business worldwide and focus the student’s attention on new topics:

●● Learning Objectives (in 15 chapters) ●● Exhibits (15 throughout the text) ●● Myth or Science? (8 of 18 total) ●● An Ethical Choice (10 of 18 total) ●● Point/Counterpoint (8 of 18 total)

●● NEW The following end-of-chapter material is either completely new or substantially revised and updated for each chapter to bring the most con- temporary thinking to the attention of students:

●● Summary (4 of 18 total) ●● Implications for Managers (11 of 18 total) ●● Questions for Review (in 16 chapters) ●● Experiential Exercise (12 of 18 total) ●● Ethical Dilemma (14 of 18 total) ●● Case Incidents (25 of 36 total)

MyManagementLab Suggested Activities For the 17th edition the author is excited that Pearson’s MyManagementLab has been integrated fully into the text. These new features are outlined below.

xxvi PrEFACE

Making assessment activities available on line for students to complete before coming to class will allow you the professor more discussion time during the class to review areas that students are having difficulty in comprehending.

Learn It Students can be assigned the Chapter Warm-Up before coming to class. Assign- ing these questions ahead of time will ensure that students are coming to class prepared.

Personal Inventory Assessments (PIA) Students learn better when they can connect what they’re learning to their per- sonal experience. PIA (Personal Inventory Assessments) is a collection of online exercises designed to promote self-reflection and student engagement, enhanc- ing their ability to connect with concepts taught in principles of management, organizational behavior, and human resource management classes. Assessments are assignable by instructors who can then track students completions. Student results include a written explanation along with a graphic display that shows how their results compare to the class as a whole. Instructors will also have access to this graphic representation of results to promote classroom discussion.

Watch It! Recommends a video clip that can be assigned to students for outside class- room viewing or that can be watched in the classroom. The video corresponds to the chapter material and is accompanied by multiple choice questions that re-enforce the student’s comprehension of the chapter content.

Try It! Recommends a mini simulation that can be assigned to students as an outside classroom activity or it can be done in the classroom. As the students watch the simulation, they will be asked to make choices based on the scenario presented in the simulation. At the end of the simulation, the student will receive immedi- ate feedback based on the answers they gave. These simulations re-enforce the concepts of the chapter and the students, comprehension of those concepts.

Talk About It These are discussion questions that can be assigned as an activity within the classroom.

Assisted Graded Writing Questions These are short essay questions that the students can complete as an assignment and submit to you the professor for grading.

Chapter Quiz These are review questions that can be assigned to students to answer upon completion of the chapter, this gradeable activity allows you the professor to see if the students have comprehended the chapter’s content.

Chapter-by-Chapter Changes Chapter 1: What Is Organizational Behavior?

●● New Opening Vignette (Wall Street Warriors) ●● New Feature! Try It (Simulation: What Is Management?)

PrEFACE xxvii

●● New research in The Importance of Interpersonal Skills ●● New Feature! Watch It (Herman Miller: Organizational Behavior) ●● Newly revised section: Management and Organizational Behavior ●● Updated Myth or Science? (Management by Walking Around Is the Most

Effective Management) ●● New research in Big Data ●● New section: Current Usage ●● New section: New Trends ●● New section: Limitations ●● New research in Overseeing Movement of Jobs to Countries with Low-Cost

Labor ●● New research in Adapting to Differing Cultural and Regulatory Norms ●● New major section: Workforce Demographics ●● New research in Customer Service ●● New major section: Social Media ●● New research in Positive Work Environment ●● New research in Ethical Behavior ●● New Feature! Career OBjectives (What do I say about my termination?) ●● Updated OB Poll (Percentage of Men and Women Working) ●● New Feature! Personal Inventory Assessment (Multicultural Awareness Scale) ●● New section in Withdrawal Behavior ●● New international research in Productivity ●● Revised Questions for Review ●● New Point/Counterpoint (The Battle of the Texts) ●● New Experiential Exercise (Managing the OB Way) ●● New Ethical Dilemma (There’s a Drone in Your Soup) ●● Updated Case Incident 1 (Apple Goes Global) ●● New Case Incident 2 (Big Data for Dummies)

Chapter 2: Diversity in Organizations ●● Revised Learning Objectives ●● New Opening Vignette (Exploiting a Loophole) ●● Revised section: Demographic Characteristics ●● Updated OB Poll (Gender Pay Gap: Narrowing but Still There) ●● Updated An Ethical Choice (Affirmative Action for Unemployed Veterans) ●● New major section: Stereotype Threat ●● New Feature! Personal Inventory Assessment (Intercultural Sensitivity Scale) ●● New research in Discrimination in the Workplace ●● Updated Myth or Science? (Bald Is Better) ●● New research and section in Age ●● New international research in Sex ●● New international research in Race and Ethnicity ●● New international research in Disabilities ●● New major section: Hidden Disabilities ●● New international research in Religion ●● New international research in Sexual Orientation and Gender Identity ●● New Feature! Career OBjectives (Is it okay to be gay at work?) ●● New Feature! Watch It (Verizon: Diversity) ●● New research in Intellectual Abilities ●● Major new section: Hidden Disabilities ●● New international research in Physical Abilities ●● New research in Diversity in Groups ●● New Feature! Try It (Simulation: Human Resources and Diversity) ●● Updated Implications for Managers

xxviii PrEFACE

●● New/updated Point/Counterpoint (Affirmative Action Programs Have Outlived Their Usefulness)

●● Revised Questions for Review ●● New Experiential Exercise (Differences) ●● New/updated Ethical Dilemma (Getting More Women on Board) ●● New Case Incident 1 (Walking the Walk) ●● New/updated Case Incident 2 (The Encore Career)

Chapter 3: Attitudes and Job Satisfaction ●● Revised Learning Objectives ●● New Opening Vignette (Patching Together a Career) ●● New Feature! Watch It (Gawker Media: Attitudes and Job Satisfaction) ●● New An Ethical Choice (Office Talk) ●● New Exhibit 3-2 (Worst Jobs of 2014 for Job Satisfaction) ●● New research in How Satisfied Are People in Their Jobs? ●● New section: Job Conditions ●● New section: Personality ●● New Feature! Personal Inventory Assessment (Core Self-Evaluation [CSE]

Scale) ●● New Exhibit 3-5 (Relationship Between Average Pay in Job and Job Satisfac-

tion of Employees in That Job) ●● New major section: Corporate Social Responsibility (CSR) ●● New research in Organizational Citizenship Behavior (OCB) ●● New section: Life Satisfaction ●● New Feature! Career OBjectives (How can I make my job better?) ●● New major section: Counterproductive Work Behavior (CWB) ●● Revised Implications for Managers ●● New/updated Point/Counterpoint (Employer-Employee Loyalty Is an Outdated

Concept) ●● Revised Questions for Review ●● New Experiential Exercise (What Satisfies You about Your Dream Job?) ●● New Ethical Dilemma (Tell-All Websites) ●● Updated Case Incident 1 (The Pursuit of Happiness: Flexibility) ●● Updated Case Incident 2 (Job Crafting)

Chapter 4: Emotions and Moods ●● Revised Learning Objectives ●● New Opening Vignette (Blowing Up) ●● New international research in The Basic Emotions ●● Updated Myth or Science? (Smile, and the Work World Smiles with You) ●● New research and discussion in Moral Emotions ●● Updated Exhibit 4-2 (The Structure of Mood) ●● New international research in Experiencing Moods and Emotions ●● New research in The Functions of Emotions ●● New research in Do Emotions Make Us Ethical? ●● New research in Time of the Day ●● New research and discussion in Sleep ●● New research and discussion in Emotional Labor ●● New research and discussion in Emotional Intelligence ●● Updated An Ethical Choice (Should Managers Use Emotional Intelligence

[EI] Tests?) ●● New section in Emotion Regulation Influences and Outcomes ●● New section in Emotion Regulation Techniques ●● New section: Ethics of Emotion Regulation

PrEFACE xxix

●● New Feature! Career OBjectives (How do I turn down the volume on my screaming boss?)

●● New research in Safety and Injury at Work ●● Revised Implications for Managers ●● New Feature! Emotional Intelligence Assessment ●● Updated Point/Counterpoint (Sometimes Yelling Is for Everyone’s Good) ●● Revised Questions for Review ●● New Experiential Exercise (The Happiness Test) ●● New Ethical Dilemma (Data Mining Emotions) ●● Updated Case Incident 1 (Crybabies) ●● New Case Incident 2 (Tall Poppy Syndrome)

Chapter 5: Personality and Values ●● Revised Learning Objectives ●● New Opening Vignette (Secrets of a Successful Entrepreneur) ●● New research in What is Personality? ●● New international research and discussion in Measuring Personality ●● New Feature! Career OBjectives (How do I ace the personality test?) ●● New introduction in Personality Frameworks ●● New section in The Myers-Briggs Type Indicator ●● New research and discussion in The Big Five Personality Model ●● New sections: Conscientiousness at Work, Emotional Stability at Work,

Extraversion at Work, Openness at Work, and Agreeableness at Work ●● New Feature! Try It (Simulation: Individual Behavior) ●● New research in The Dark Triad ●● New major section: Other Traits ●● New/updated Myth or Science? (We Can Accurately Judge Individuals’

Personalities a Few Seconds After Meeting Them) ●● New research and discussion in Proactive Personality ●● New research and discussion in Situation Strength Theory ●● New Feature! Watch It (Honest Tea: Ethics—Company Mission and

Values) ●● Updated An Ethical Choice (Do You Have a Cheating Personality?) ●● New international research in Person-Job Fit ●● New research and discussion in Person-Organization Fit ●● New major section: Other Dimensions of Fit ●● New Feature! Try It (Simulation: Human Behavior) ●● New discussion in Cultural Values ●● Revised Summary ●● Revised Implications for Managers ●● New Feature! Personality Inventory Assessment (Personality Style Indicator) ●● New/updated Point/Counterpoint (Millennials Are More Narcissistic Than

Their Parents) ●● Revised Questions for Review ●● New Experiential Exercise (Your Best Self) ●● Revised/updated Ethical Dilemma (Millennial Job Hopping) ●● Updated Case Incident 2 (The Power of Quiet)

Chapter 6: Perception and Individual Decision Making ●● Revised Learning Objectives ●● New Opening Vignette (Is Palmer Luckey Lucky or Masterfully Creative?) ●● New research and discussion in Perceiver ●● New research and discussion in Target ●● New research and discussion in Context

xxx PrEFACE

●● New Feature! Watch It (Orpheus Group Casting: Social Perception and Attribution)

●● New discussion and research in Person Perception: Making Judgments about Others

●● New Feature! Career OBjectives (So what if I’m a few minutes late to work?) ●● New research in Attribution Theory ●● Updated discussion in Halo Effect ●● New research and discussion in The Link Between Perception and Individual

Decision Making ●● New research in Escalation of Commitment ●● New Feature! Try It (Simulation: Decision Making) ●● New research in Gender ●● New section: Nudging ●● New international research and discussion in Three Ethical Decision Criteria ●● New major section: Lying ●● New research in Creative Behavior ●● New sections created with new research and discussion: Intelligence and Cre-

ativity, Personality and Creativity, Expertise and Creativity, Ethics and Creativity ●● New section in Creative Environment ●● Revised Implications for Managers ●● New Feature! Personal Inventory Assessment (How Creative Are You?) ●● Revised Point-Counterpoint (Stereotypes Are Dying) ●● Revised Questions for Review ●● New Experiential Exercise (Good Liars and Bad Liars) ●● New/updated Ethical Dilemma (Cheating Is a Decision) ●● New Case Incident 1 (Too Much of a Good Thing)

Chapter 7: Motivation Concepts ●● Revised Learning Objectives ●● New Opening Vignette (Motivated Toward Corporate Social Responsibility) ●● New Feature! Watch It (Motivation [TWZ Role Play]) ●● New research and discussion in Hierarchy of Needs Theory ●● Updated Exhibit 7-1 (Maslow’s Hierarchy of Needs) ●● New international research and discussion in McClelland’s Theory of Needs ●● New Feature! Career OBjectives (Why won’t he take my advice?) ●● New research and discussion in Self-Determination Theory ●● New international research, discussion, and organization in Goal-Setting

Theory ●● New section: Goal-Setting and Ethics ●● New research in Self-Efficacy Theory ●● Updated An Ethical Choice (Motivated by Big Brother) ●● New research and organization in Equity Theory/Organizational Justice ●● New section: Ensuring Justice ●● New section with international research and discussion: Culture and Justice ●● New Feature! Try It (Simulation: Motivation) ●● New Feature! Personal Inventory Assessment (Work Motivation Indicator) ●● Revised Questions for Review ●● New Ethical Dilemma (The New GPA) ●● New Case Incident 1 (The Demotivation of CEO Pay) ●● New Case Incident 2 (The Sleepiness Epidemic)

Chapter 8: Motivation: From Concepts to Applications ●● New Opening Vignette (Motivated to Risk It All) ●● Updated Exhibit 8-1 (The Job Characteristics Model)

PrEFACE xxxi

●● New section, international research, and discussion in The Job Character- istics Model

●● New research and discussion in Job Rotation ●● New/updated Myth or Science? (Money Can’t Buy Happiness) ●● New section and research in Relational Job Design ●● New Feature! Personal Inventory Assessment (Need for Team Building) ●● New research in Flextime ●● New research in Job Sharing ●● New Feature! Career OBjectives (How can I get flextime?) ●● New research and discussion in Telecommuting ●● New international research and discussion in Employee Involvement and

Participation ●● New research in Participative Management ●● New research in Representative Participation ●● New section, research, and discussion in How to Pay: Rewarding Individual

Employees Through Variable-Pay Programs ●● New section, international research, and discussion in Piece-Rate Pay ●● New research in Merit-Based Pay ●● New international research in Bonuses ●● New international research in Profit-Sharing Plans ●● New research in Employee Stock Ownership Plans ●● New/updated section: Evaluation of Variable Pay ●● Updated An Ethical Choice (Sweatshops and Worker Safety) ●● New section and international research in Flexible Benefits: Developing

a Benefits Package ●● New research in Employee Recognition Programs ●● New Feature! Watch It (Zappos: Motivating Employees Through Company

Culture) ●● Revised Questions for Review ●● New Case Incident 2 (Pay Raises Every Day)

Chapter 9: Foundations of Group Behavior ●● Revised Learning Objectives ●● New Opening Vignette (Crushed by the Herd) ●● New major section: Social Identity ●● New section: Ingroups and Outgroups ●● New section: Social Identity Threat ●● New Feature! Watch It (Witness.org: Managing Groups & Teams) ●● New section: Role Perception ●● New section: Role Expectations ●● New section: Role Conflict ●● New section: Role Play and Assimilation ●● New Myth or Science? (Gossip and Exclusion Are Toxic for Groups) ●● New research in Group Property 2: Norms ●● New section: Norms and Emotions ●● New research in Norms and Conformity ●● Updated An Ethical Choice ●● New section: Norms and Behavior ●● New major section: Positive Norms and Group Outcomes ●● New section: Negative Norms and Group Outcomes ●● New section: Norms and Culture ●● New introduction in new section: Group Property 3: Status and Group

Property 4: Size and Dynamics ●● New research in Status and Norms

xxxii PrEFACE

●● New research in Status and Group Interaction ●● New section: Group Status ●● New research in Group Property 4: Size and Dynamics ●● New introduction in Group Property 5: Cohesiveness and Group Property

6: Diversity ●● New international research in Group Property 6: Diversity ●● New Feature! Personal Inventory Assessment (Communicating Supportively) ●● New international research in Effectiveness and Efficiency ●● New Feature! Career OBjectives (Can I fudge the numbers and not take the

blame?) ●● Revised Implications for Managers ●● Revised Questions for Review ●● New Case Incident 2 (Intragroup Trust and Survival)

Chapter 10: Understanding Work Teams ●● New Opening Vignette (Teams That Play Together Stay Together) ●● New research and discussion in Why Have Teams Become So Popular? ●● New discussion in Problem-Solving Teams ●● New research in Cross-Functional Teams ●● New research in Virtual Teams ●● New research and discussion in Multiteam Systems ●● New Feature! Watch It (Teams [TWZ Role Play]) ●● New research and discussion in Creating Effective Teams ●● Revised Exhibit 10-3 (Team Effectiveness Model) ●● New international research in Climate of Trust ●● New research in Team Composition ●● New research and discussion in Personality of Members ●● New section: Cultural Differences ●● New Feature! Career OBjectives (Is it wrong that I’d rather have guys on my

team?) ●● New research in Size of Teams ●● New major section: Team Identity ●● New major section: Team Cohesion ●● New international research and discussion in Mental Models ●● New international research and discussion in Conflict Levels ●● New Feature! Personal Inventory Assessment (Team Development Behaviors) ●● New Feature! Try It (Simulation: Teams) ●● Revised Implications for Managers ●● New Ethical Dilemma (The Sum of the Team Is Less Than Its Members) ●● Updated Case Incident 1 (Tongue-Tied in Teams) ●● New Case Incident 2 (Smart Teams and Dumb Teams)

Chapter 11: Communication ●● Revised Learning Objectives ●● New Opening Vignette (Curious Communication) ●● New research and discussion in Functions of Communication ●● New research in Downward Communication ●● New section in Upward Communication ●● New research and discussion in The Grapevine ●● New Feature! Watch It (Communication [TWZ Role Play]) ●● New Exhibit 11-4 (Dealing with Gossip and Rumors) ●● New section in Oral Communication ●● Major new section in Meetings ●● Major new section in Videoconferencing and Conference Calling

PrEFACE xxxiii

●● Major new section in Telephone ●● New Feature! Career OBjectives (Isn’t this too much to accommodate?) ●● New research in Letters ●● New major section in E-mail ●● New research in Social Media Websites ●● New section: Apps ●● New research in Blogs ●● New Feature! Personal Inventory Assessment (Communication Styles) ●● Updated Exhibit 11-7 (Information Richness and Communication Channels) ●● New research in Choosing Communication Methods ●● New Feature! Try It (Simulation: Communication) ●● New research in Information Overload ●● Revised Questions for Review ●● New Ethical Dilemma (BYOD) ●● Updated Case Incident 1 (Organizational Leveraging of Social Media)

Chapter 12: Leadership ●● Revised Learning Objectives ●● New Opening Vignette (The Flamboyant Leadership of Jack Ma) ●● New Feature! Watch It (Leadership [TWZ Role Play]) ●● New Feature! Career OBjectives (How can I get my boss to be a better

leader?) ●● New international research in Trait Theories ●● New introduction in Contemporary Theories of Leadership ●● New research in Leader-Member Exchange Theory ●● New research in What Is Charismatic Leadership? ●● New research in Transactional and Transformational Leadership ●● New research in How Transformational Leadership Works ●● New international research in Evaluation of Transformational Leadership ●● New section Transformational versus Charismatic Leadership ●● New Feature! Personal Inventory Assessment (Ethical Leadership Assessment) ●● New introduction in Responsible Leadership ●● New research in Servant Leadership ●● New section: Trust and Culture ●● New Feature! Try It (Simulation: Leadership) ●● Revised Summary ●● Revised Implications for Managers ●● New Questions for Review ●● New Point-Counterpoint (CEOs Start Early) ●● New Ethical Dilemma (Smoking Success)

Chapter 13: Power and Politics ●● Revised Learning Objectives ●● New Opening Vignette (Power in College Sports) ●● New Feature! Watch It (Power and Political Behavior) ●● New Learning Objectives and Questions ●● New discussion in Power and Leadership ●● Major new section: Social Network Analysis: A Tool for Assessing Resources ●● New Exhibit 13-1 (Sociogram) ●● New international research and discussion in Sexual Harassment ●● New research and discussion in Individual Factors ●● New Feature! Career OBjectives (Should I become political?) ●● New research and discussion in Organizational Factors ●● New research in Impression Management

xxxiv PrEFACE

●● New An Ethical Choice (How Much Should You Manage Interviewer Impressions?)

●● New section: Interviews and IM ●● New section: Performance Evaluations and IM ●● New Feature! Personal Inventory Assessment (Gaining Power and Influence) ●● Updated Point/Counterpoint (Everyone Wants Power) ●● Revised Questions for Review ●● New Experiential Exercise (Comparing Influence Tactics) ●● New Case Incident 1 (The Powerful Take All) ●● Updated Case Incident 2 (Barry’s Peer Becomes His Boss)

Chapter 14: Conflict and Negotiation ●● Revised Learning Objectives ●● New Opening Vignette (A Change of Tune) ●● New discussion and organization in A Definition of Conflict ●● New international research in Personal Variables ●● New research and discussion in Stage IV: Behavior ●● New research in Functional Outcomes ●● New Feature! Watch It (Gordon Law Group: Conflict and Negotiation) ●● New international research and discussion in Managing Functional

Conflict ●● New research in Preparation and Planning ●● New Feature! Career OBjectives (How can I get a better job?) ●● New research and discussion in Personality Traits in Negotiations ●● New research and discussion in Gender Differences in Negotiations ●● New major section: Negotiating in a Social Context ●● New research in Third-Party Negotiations ●● Revised Implications for Managers ●● New Feature! Personal Inventory Assessment (Strategies for Handling Conflict) ●● Updated Point-Counterpoint (Pro Sports Strikes Are Caused by Greedy

Owners) ●● Revised Questions for Review ●● New Experiential Exercise (A Negotiation Role-Play) ●● New Case Incident 1 (Disorderly Conduct) ●● Updated Case Incident 2 (Twinkies, Rubber Rooms, and Collective Bargaining)

Chapter 15: Foundations of Organization Structure ●● New Learning Objectives ●● New Opening Vignette (In the Flat Field) ●● Revised Exhibit 15-1 (Key Design Questions and Answers for Designing the

Proper Organizational Structure) ●● New section in Departmentalization ●● New major section: Boundary Spanning ●● New major section: The Functional Structure ●● New major section: The Divisional Structure ●● New design and discussion in Alternate Design Options ●● New section: The Team Structure ●● New Feature! Career OBjectives (What structure should I choose?) ●● New section: The Circular Structure ●● New Feature! Personal Inventory Assessment (Organizational Structure

Assessment) ●● New research in The Leaner Organization: Downsizing ●● New research in Organizational Strategies ●● New international research in Technology

PrEFACE xxxv

●● New major section: Institutions ●● New Feature! Try It (Simulation: Organizational Structure) ●● New Feature! Watch It (ZipCar: Organizational Structure) ●● Revised Questions for Review ●● New Ethical Dilemma (Post-Millennium Tensions in the Flexible Organization) ●● New Experiential Exercise (The Sandwich Shop)

Chapter 16: Organizational Culture ●● Revised Learning Objectives ●● New Opening Vignette (Welcome to the Machine) ●● New discussion on What Is Organizational Culture? ●● New major section: Culture and Sustainability ●● Updated research in Culture and Innovation ●● New section: Strengthening Dysfunctions ●● New section in Barriers to Acquisitions and Mergers ●● New research in Socialization ●● Revised An Ethical Choice ●● New Feature! Try It (Simulation: Organizational Culture) ●● New section introduction: Influencing an Organizational Culture ●● New section topic: A Positive Culture ●● New Feature! Career OBjectives (How do I learn to lead?) ●● New section topic: The Global Context ●● New international research in The Global Context ●● New Feature! Personal Inventory Assessment (Comfort with Change Scale) ●● Revised Questions for Review ●● New Experiential Exercise (Greeting Newcomers) ●● New Ethical Dilemma (Culture of Deceit) ●● New Case Incident 1 (The Place Makes the People) ●● New Case Incident 2 (Active Cultures)

Chapter 17: Human Resource Policies and Practices ●● Revised Learning Objectives ●● New Opening Vignette (Would You Like a Diploma with Your Latté?) ●● Revised Exhibit 17-1 (Model of Selection Process in Organizations) ●● New Feature! Career OBjectives (How do I fire someone?) ●● New research and discussion in Recruitment Practices ●● New research in Written Tests ●● New research and discussion in Interviews ●● New research and discussion in Civility Training ●● New international research and discussion in Evaluating Effectiveness ●● New Exhibit 17-2 (360-Degree Evaluations) ●● New research in Providing Performance Feedback ●● New Feature! Try It (Simulation: HR) ●● New major section: Communicating HR Practices ●● New research in Designing and Administering Benefit Programs ●● Updated An Ethical Choice (HIV/AIDS and the Multinational Organization) ●● New research in Drafting and Enforcing Employment Policies ●● New Myth or Science? (The 24-Hour Workplace Is Harmful) ●● New research in Managing Work–Life Conflicts ●● Revised/updated Exhibit 17-4 (Work–Life Initiatives) ●● New Feature! Watch It (Patagonia: Human Resource Management) ●● New Summary ●● Revised Implications for Managers ●● New Feature! Personal Inventory Assessment (Positive Practices Survey)

xxxvi PrEFACE

●● New Point/Counterpoint (Employers Should Check Applicant Criminal Backgrounds)

●● Revised Questions for Review ●● New Experiential Exercise (Designing an Effective Structured Job Interview) ●● New Ethical Dilemma (Are On-Demand Workers Really Employees?) ●● New Case Incident 1 (Getting a Foot in the Door?)

Chapter 18: Organizational Change and Stress Management ●● Revised Learning Objectives ●● New Opening Vignette (Supporting Change from the Bottom Up) ●● New research in Change ●● New discussion in Forces for Change ●● New research and discussion in Planned Change ●● New research in Resistance to Change ●● New research in Develop Positive Relationships ●● New discussion in Coercion ●● New Feature! Try It (Simulation: Change) ●● New major section: Managing Paradox ●● New research in Stimulating a Culture of Innovation ●● New international research in Sources of Innovation ●● New research in Creating a Learning Organization ●● New Feature! Watch It (East Haven Fire Department: Managing Stress) ●● Updated Exhibit 18-7 (Work Is the Biggest Stress for Most ●● Updated OB Poll (Many Employees Feel Extreme Stress) ●● New research and section in What Is Stress? ●● Revised/Updated Exhibit 18-8 (A Model of Stress) ●● New Feature! Career OBjectives (How can I bring my team’s overall stress level

down?) ●● New research in Organizational Factors ●● New research in Personal Factors ●● Updated Myth or Science? (When You’re Working Hard, Sleep Is Optional) ●● New research in Behavioral Symptoms ●● New research in Organizational Approaches ●● Revised Summary ●● Revised Implications for Managers ●● New Feature! Personal Inventory Assessment (Tolerance of Ambiguity Scale) ●● New Point/Counterpoint (Companies Should Encourage Stress Reduction) ●● New Experiential Exercise (Mindfulness at Work) ●● New Ethical Dilemma (All Present and Accounted For) ●● New Case Incident 1 (Sprucing Up Walmart)

Instructor Resources At the Instructor Resource Center, www.pearsonhighered.com/irc, instructors can easily register to gain access to a variety of instructor resources available with this text in downloadable format. If assistance is needed, our dedicated technical support team is ready to help with the media supplements that accom- pany this text. Visit http://247.pearsoned.com for answers to frequently asked questions and toll-free user support phone numbers.

The following supplements are available with this text:

●● Instructor’s Resource Manual ●● Test Bank ●● TestGen® Computerized Test Bank ●● PowerPoint Presentation

http://www.pearsonhighered.com/irc
http://247.pearsoned.com
xxxvii

Acknowledgments

Getting this book into your hands was a team effort. It took faculty reviewers and a talented group of designers and production specialists, editorial personnel, and marketing and sales staff.

The seventeenth edition was peer reviewed by many experts in the field. Their comments, compliments, and suggestions have significantly improved the final product. The authors would also like to extend their sincerest thanks to the following instructors: Pam DeLotell, Kaplan University; Phil Roth, Clemson University; Jody Tolan, MBA, Lecturer, Management and Organiza- tion, University of Southern California Marshall School of Business; Holly A. Schroth, University of California, Berkeley; Jon C. Tomlinson, Ph.D., Univer- sity of Northwestern Ohio; Andrew Johnson, Santa Clara University; Dr. Alan Goldman, Professor of Management, Faculty Director, W. P. Carey School of Business, Arizona State University West; Dr. Edward F. Lisoski, Angelo State University; E. Anne Christo-Baker, Purdue University North Central; and Dr. Josh Plaskoff, Kelley School of Business—IUPUI.

The authors wish to thank Lori Ehrman Tinkey of the University of Notre Dame and John Kammeyer-Mueller of the University of Minnesota for help with several key aspects of this revision.

We owe a debt of gratitude to all those at Pearson Education who have supported this text over the past 30 years and who have worked so hard on the development of this latest edition. On the development and editorial side, we want to thank Kris Ellis-Levy, Senior Acquisitions Editor; Ashley Santora, Program Manager Team Lead; Sarah Holle, Program Manager; and Elisa Adams, Development Editor. On the design and production side, Jeff Holcomb, Proj- ect Manager Team Lead, did an outstanding job, as did Kelly Warsak, Project Manager, and Nancy Moudry, Photo Development Editor. Last but not least, we would like to thank Lenny Ann Kucenski, Marketing Manager; Maggie Moylan, Director of Marketing; and their sales staff, who have been selling this text over its many editions. Thank you for the attention you’ve given to this text.

S ou

rc e:

C hr

is G

oo dn

ey /B

lo om

be rg

/G et

ty Im

ag es

What Is Organizational Behavior?1

2

What Is Organizational Behavior? CHAPTER 1 3

Wall Street WarriorS

Brad Katsuyama had never set foot on Wall Street until his employer, the Royal Bank of Canada (RBC), sent him to New York from Toronto. At 23 years old, he felt unprepared to help put RBC “on the map” of

Wall Street investors and had a difficult time applying RBC’s

slogan of friendliness—“RBC nice”—to the new environment. Remarking on his early experience, Katsuyama said, “I met

more offensive people in a year than I had in my entire life.”

Stock trading is done electronically, so at first Katsuyama

could surround himself with fellow RBC employees in his own

offices and thus avoid the harsh Wall Street personalities.

That all changed in 2006, when RBC acquired U.S. electronic-

trading firm Carlin Financial, and Katsuyama was required to

work with them. Carlin’s culture was the extreme opposite of

RBC nice. Its CEO, Jeremy Frommer, summed it up when he

said, “It’s not just enough to fly in first class; I have to know

my friends are flying in coach.” Worse than the culture clash between RBC and Carlin was

the shocking lack of technical acumen in both companies.

RBC didn’t know much about electronic trading, and Katsuyama found that,

surprisingly, Carlin didn’t either. Problems began to arise soon after the

merger: every time Katsuyama tried to complete a trade, the offers would

vanish off his screen. At first, he assumed it was a problem with Carlin’s

systems, but gradually he learned that many Wall Street investors were

1-1 Demonstrate the importance of interpersonal skills in the workplace.

1-2 Define organizational behavior (OB).

1-3 Show the value to OB of systematic study.

1-4 Identify the major behavioral science disciplines that contribute to OB.

1-5 Demonstrate why few absolutes apply to OB.

1-6 Identify managers’ challenges and opportunities in applying OB concepts.

1-7 Compare the three levels of analysis in this text’s OB model.

MyManagement If your professor has chosen to assign this, go to the Assignments section of mymanagementlab.com to complete the chapter warm up.

Learning Objectives After studying this chapter, you should be able to:

www.mymanagementlab.com
4 PART 1 Introduction

experiencing the same problem. “I now see that it isn’t just me,” Katsuyama

said. “My frustration is the market’s frustration. And I was like, ‘Whoa, this

is serious.’”

Katsuyama knew help would not come from Carlin—its people didn’t

have the knowledge. Now RBC’s newly appointed head of electronic trading,

he did what he’d done before—he surrounded himself with people who were

“RBC nice,” and smart. He formed a team to figure out why the electronic trading system worked lucratively for some traders and miserably for others.

The team learned that the more stock exchanges used it to place orders, the

fewer orders were filled due to the “vanishing market.” Why? Technologist

Rob Park found it all came down to milliseconds. One millisecond can equal

500 quote changes and about 150 trades, but only for companies that have

fantastic physical network connections. Programmer Allen Zhang confirmed

the diagnosis by writing a program that delayed the transmissions of orders

through the faster exchanges so the orders to all exchanges arrived at the

same time. Katsuyama concluded, “There’s no way I’m the first guy to have figured

this out. So what happened to everyone else?” The answer: Any firm that

figured out the timing discrepancy was keeping it secret and profiting from it.

Katsuyama couldn’t stand the injustice. He and his team went on the hunt

for the profiteers and found profound moral apathy among them—those

who profited would not seek change, no matter how corrupt and sinister the

game became. Katsuyama told his wife, “I think there’s only a few people in the world

who can do anything about this. If I don’t do something right now—me, Brad

Katsuyama—there’s no one to call.” He quit his job and, with fellow war-

riors Park and trading strategist Ronan Ryan, created a new independent

exchange to protect investors from Wall Street’s predators. The result was

their new company IEX, the Investors Exchange, and in December 2013, its

rate of exchange was greater than that of AMEX. It has now surpassed four

of the 13 U.S. exchanges—the NYSE MKT, the Chicago Stock Exchange,

the National Stock Exchange, and the CBOE Stock Exchange. Katsuyama

and his band of warriors are now seeking reform measures for all stock

exchanges.

Sources: H. Lash, “Trading Venue IEX Urges Reform of Stock Exchange Governance,” Reuters (December 11, 2014), http://www.reuters.com/article/2014/12/11/markets- iex-governance-idUSL1N0TV1XK20141211; M. Lewis, “The Wolf Hunters of Wall Street,” The New York Times Magazine (March 31, 2014), http://www.nytimes.com/2014/04/06/ magazine/flash-boys-michael-lewis.html?emc=eta1; and E. Picardo, “How IEX Is Combating Predatory Types of High-Frequency Traders,” Forbes (April 23, 2014), http://www.forbes .com/sites/investopedia/2014/04/23/how-iex-is-combating-predatory-types-of-high- frequency-traders/.

http://www.reuters.com/article/2014/12/11/markets-iex-governance-idUSL1N0TV1XK20141211
http://www.reuters.com/article/2014/12/11/markets-iex-governance-idUSL1N0TV1XK20141211
http://www.nytimes.com/2014/04/06/magazine/flash-boys-michael-lewis.html?emc=eta1
http://www.forbes.com/sites/investopedia/2014/04/23/how-iex-is-combating-predatory-types-of-highfrequency-traders/
http://www.forbes.com/sites/investopedia/2014/04/23/how-iex-is-combating-predatory-types-of-highfrequency-traders/
http://www.nytimes.com/2014/04/06/magazine/flash-boys-michael-lewis.html?emc=eta1
What Is Organizational Behavior? CHAPTER 1 5

The details of this story are at once disheartening and inspiring, reflecting the increasing complexity of organizational life. They also highlight several issues of interest to those of us seeking to understand organizational behavior, including motivation, ethics, emotions, personality, and culture. Throughout this text, you’ll learn how we can systematically study all these elements.

The Importance of Interpersonal Skills Until the late 1980s, business school curricula emphasized the technical aspects of management, focusing on economics, accounting, finance, and quantitative techniques. Course work in human behavior and people skills received relatively less attention. Since then, however, business schools have realized the signifi- cant role interpersonal skills play in determining a manager’s effectiveness. In fact, a survey of over 2,100 CFOs across 20 industries indicated that a lack of interpersonal skills is the top reason why some employees fail to advance.1

Incorporating OB principles into the workplace can yield many important organizational outcomes. For one, companies known as good places to work— such as Genentech, the Boston Consulting Group, Qualcomm, McKinsey & Company, Procter & Gamble, Facebook, and Southwest Airlines2—have been found to generate superior financial performance.3 Second, developing manag- ers’ interpersonal skills helps organizations attract and keep high-performing employees, which is important since outstanding employees are always in short supply and are costly to replace. Third, there are strong associations between the quality of workplace relationships and employee job satisfaction, stress, and turnover. One very large survey of hundreds of workplaces and more than 200,000 respondents showed that social relationships among coworkers and supervisors were strongly related to overall job satisfaction. Positive social rela- tionships also were associated with lower stress at work and lower intentions

1-1 Demonstrate the importance of interpersonal skills in the workplace.

IBM Chief Executive Virginia Rometty has the interpersonal skills required to succeed in management. Communication and leadership skills distinguish managers such as Rometty, who rise to the top of their profession. Shown here at a meeting in Beijing, Rometty is an innovative leader capable of driving IBM’s entrepreneurial culture. Source: Li Tao/Xinhua Press/Corbis

6 PART 1 Introduction

to quit.4 Further research indicates that employees who relate to their manag- ers with supportive dialogue and proactivity find that their ideas are endorsed more often, which improves workplace satisfaction.5 Fourth, increasing the OB element in organizations can foster social responsibility awareness. Accordingly, universities have begun to incorporate social entrepreneurship education into their curriculum in order to train future leaders to address social issues within their organizations.6 This is especially important because there is a growing need for understanding the means and outcomes of corporate social responsi- bility, known as CSR.7

We understand that in today’s competitive and demanding workplace, managers can’t succeed on their technical skills alone. They also have to exhibit good people skills. This text has been written to help both managers and potential managers develop those people skills with the knowledge that under- standing human behavior provides.

Try IT! If your professor has assigned this, go to the Assignments section of mymanagementlab.com to complete the Simulation: What Is Management?

Management and Organizational Behavior Let’s begin by briefly defining the terms manager and organization. First, the defining characteristic of managers is that they get things done through other people. They make decisions, allocate resources, and direct the activities of oth- ers to attain goals. Managers are sometimes called administrators, especially in not-for-profit organizations. They do their work in an organization, which is a consciously coordinated social unit, composed of two or more people, that func- tions on a relatively continuous basis to achieve a common goal or set of goals. By this definition, manufacturing and service firms are organizations, and so are schools, hospitals, churches, military units, nonprofits, police departments, and local, state, and federal government agencies.

More than ever, a manager is someone placed into the position without man- agement training or informed experience. According to a large-scale survey, more than 58 percent of managers reported they had not received any training and 25 percent admitted they were not ready to lead others when they were given the role.8 Added to that challenge, the demands of the job have increased: the average manager has seven direct reports (five was once the norm), and has less manage- ment time to spend with them than before.9 Considering that a Gallup poll found organizations chose the wrong candidate for management positions 82 percent of the time,10 we conclude that the more you can learn about people and how to manage them, the better prepared you will be to be that right candidate. OB will help you get there. Let’s start with identifying the manager’s primary activities.

The work of managers can be condensed to four activities: planning, organiz- ing, leading, and controlling. The planning function encompasses defining an organization’s goals, establishing an overall strategy for achieving those goals, and developing a comprehensive set of plans to integrate and coordinate activi- ties. Evidence indicates the need for planning increases the most as managers move from lower-level to mid-level management.11

When managers engage in designing their work unit’s structure, they are organizing. The organizing function includes determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made.

1-2 Define organizational behavior (OB).

manager An individual who achieves goals through other people.

organization A consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals.

controlling Monitoring activities to ensure they are being accomplished as planned and correcting any significant deviations.

planning A process that includes defining goals, establishing strategy, and developing plans to coordinate activities.

organizing Determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made.

leading A function that includes motivat- ing employees, directing others, selecting the most effective communication channels, and resolving conflicts.

www.mymanagementlab.com
What Is Organizational Behavior? CHAPTER 1 7

Every organization contains people, and it is management’s job to direct and coordinate those people. This is the leading function. When managers motivate employees, direct their activities, select the most effective communica- tion channels, or resolve conflicts, they’re engaging in leading.

To ensure things are going as they should, management must monitor the organization’s performance and compare it with previously set goals. If there are any significant deviations, it is management’s job to get the organization back on track. This monitoring, comparing, and potential correcting is the controlling function.

Management roles Henry Mintzberg, now a prominent management scholar, undertook a careful study of executives to determine what they did on their jobs early in his career. On the basis of his observations, Mintzberg concluded that managers perform 10 different, highly interrelated roles, or sets of behaviors, and serve a critical function in organizations.12 As shown in Exhibit 1-1, these 10 roles are primar- ily (1) interpersonal, (2) informational, or (3) decisional. Although much has changed in the world of work since Mintzberg developed this model, research indicates the roles have changed very little.13

interpersonal roles All managers are required to perform duties that are ceremonial and symbolic in nature. For instance, when the president of a college hands out diplomas at commencement or a factory supervisor gives a group of high school students a tour of the plant, they are acting in a figure- head role. Another key interpersonal role all managers have is a leadership role.

Source: Mintzberg, Henry, The Nature of Managerial Work, 1st Ed., © 1973, pp. 92–93. Reprinted and Electronically reproduced

by permission of Pearson Education, Inc., New York, NY.

Minztberg’s Managerial rolesExhibit 1-1

Role Description

Interpersonal

Figurehead Symbolic head; required to perform a number of routine duties of a legal or social nature

Leader Responsible for the motivation and direction of employees Liaison Maintains a network of outside contacts who provide favors

and information

Informational

Monitor Receives a wide variety of information; serves as nerve center of internal and external information of the organization

Disseminator Transmits information received from outsiders or from other employees to members of the organization

Spokesperson Transmits information to outsiders on organization’s plans, policies, actions, and results; serves as expert on organization’s industry

Decisional

Entrepreneur Searches organization and its environment for opportunities and initiates projects to bring about change

Disturbance handler Responsible for corrective action when organization faces important, unexpected disturbances

Resource allocator Makes or approves significant organizational decisions Negotiator Responsible for representing the organization at major

negotiations

8 PART 1 Introduction

This role includes hiring, training, motivating, and disciplining employees. The third role within the interpersonal grouping is the liaison role, or contacting and fostering relationships with others who provide valuable information. The sales manager who obtains information from the quality-control manager in his own company has an internal liaison relationship. When that sales manager has contact with other sales executives through a marketing trade association, he has external liaison relationships.

informational roles All managers, to some degree, collect information from outside organizations and institutions, typically by scanning the news media and talking with other people to learn of changes in the public’s tastes, what com- petitors may be planning, and the like. Mintzberg called this the monitor role. Managers also act as a conduit to transmit information to organizational mem- bers. This is the disseminator role. In addition, managers perform a spokesperson role when they represent the organization to outsiders.

Decisional roles Mintzberg identified four roles that require making choices. In the entrepreneur role, managers initiate and oversee new projects that will improve their organization’s performance. As disturbance handlers, managers take corrective action in response to unforeseen problems. As resource allocators, managers are responsible for allocating human, physical, and monetary resources. Finally, managers perform a negotiator role, in which they discuss issues and bar- gain with other units (internal or external) to gain advantages for their own unit.

Management Skills Still another way of considering what managers do is to look at the skills or competencies they need to achieve their goals. Researchers have identified a number of skills that differentiate effective from ineffective managers.14 Each of these skills is important, and all are needed to become a well-rounded and effective manager.

technical Skills Technical skills encompass the ability to apply specialized knowledge or expertise. When you think of the skills of professionals such as civil engineers or oral surgeons, you typically focus on the technical skills they have learned through extensive formal education. Of course, professionals don’t have a monopoly on technical skills, and not all technical skills have to be learned in schools or other formal training programs. All jobs require some specialized expertise, and many people develop their technical skills on the job.

Human Skills The ability to understand, communicate with, motivate, and sup- port other people, both individually and in groups, defines human skills. Many people may be technically proficient but poor listeners, unable to understand the needs of others, or weak at managing conflicts. Because managers get things done through other people, they must have good human skills.

Conceptual Skills Managers must have the mental ability to analyze and diag- nose complex situations. These tasks require conceptual skills. Decision mak- ing, for instance, requires managers to identify problems, develop alternative solutions to correct those problems, evaluate those alternative solutions, and select the best one. After they have selected a course of action, managers must be able to organize a plan of action and then execute it. The ability to integrate new ideas with existing processes and innovate on the job are also crucial con- ceptual skills for today’s managers.

technical skills The ability to apply specialized knowledge or expertise.

human skills The ability to work with, understand, and motivate other people, both individually and in groups.

conceptual skills The mental ability to analyze and diagnose complex situations.

What Is Organizational Behavior? CHAPTER 1 9

effective versus Successful Managerial activities Fred Luthans and his associates looked at what managers do from a somewhat different perspective.15 They asked, “Do managers who move up most quickly in an organization do the same activities and with the same emphasis as managers who do the best job?” You might think the answer is yes, but that’s not always the case.

Luthans and his associates studied more than 450 managers. All engaged in four managerial activities:

1. Traditional management. Decision making, planning, and controlling. 2. Communication. Exchanging routine information and processing

paperwork. 3. Human resource management. Motivating, disciplining, managing

conflict, staffing, and training. 4. Networking. Socializing, politicking, and interacting with outsiders.

The “average” manager spent 32 percent of his or her time in traditional management activities, 29 percent communicating, 20 percent in human resource management activities, and 19 percent networking. However, the time and effort different individual managers spent on those activities varied a great deal. As shown in Exhibit 1-2, among managers who were successful (defined in terms of speed of promotion within their organization), networking made the largest relative contribution to success, and human resource management activities made the least relative contribution. Among effective managers (defined in terms of quantity and quality of their performance and the satisfaction and commitment of employees), communication made the largest relative contribu- tion and networking the least. Other studies in Australia, Israel, Italy, Japan, and the United States confirm the link between networking, social relationships, and success within an organization.16 The connection between communica- tion and effective managers is also clear. Managers who explain their decisions and seek information from colleagues and employees—even if the information turns out to be negative—are the most effective.17

This research offers important insights. Successful (in terms of promotion) managers give almost the opposite emphases to traditional management, communication, human resource management, and networking as do effective

allocation of activities by timeExhibit 1-2

Source: Based on F. Luthans, R. M. Hodgetts, and S. A. Rosenkrantz, Real Managers (Cambridge, MA: Ballinger, 1988).

Average managers

Effective managers

Successful managers

19% 19%

48%

11%

11%

28%

13%

26%

44%

20%

29%

32%

Traditional management Communication

Human resource management Networking

When you see this icon, Global OB issues are being discussed in the paragraph.

10 PART 1 Introduction

managers. This finding challenges the historical assumption that promotions are based on performance, and it illustrates the importance of networking and political skills in getting ahead in organizations.

Now that we’ve established what managers do, we need to study how best to do these things. Organizational behavior (OB) is a field of study that investigates the impact individuals, groups, and structure have on behavior within organiza- tions, for the purpose of applying such knowledge toward improving an organi- zation’s effectiveness. That’s a mouthful, so let’s break it down.

OB is a field of study, meaning that it is a distinct area of expertise with a common body of knowledge. What does it study? It studies three determinants of behavior in organizations: individuals, groups, and structure. In addition, OB applies the knowledge gained about individuals, groups, and the effect of struc- ture on behavior in order to make organizations work more effectively.

To sum up our definition, OB is the study of what people do in an organiza- tion and the way their behavior affects the organization’s performance. Because OB is concerned specifically with employment-related situations, it examines behavior in the context of job satisfaction, absenteeism, employment turnover, productivity, human performance, and management. Although debate exists about the relative importance of each, OB includes these core topics:

• Motivation • Leader behavior and power • Interpersonal communication • Group structure and processes • Attitude development and perception • Change processes • Conflict and negotiation • Work design18

organizational behavior (OB) A field of study that investigates the impact individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organi- zation’s effectiveness.

Internet retailer Zappos.com under- stands how organizational behavior affects an organization’s performance. The firm maintains good employee relationships by offering generous ben- efits, extensive training, and a positive work environment in which employees are encouraged “to create fun and a little weirdness.” Source: Ronda Churchill/Bloomberg/Getty Images

WaTch IT! If your professor has assigned this, go to the Assignments section of mymanagementlab.com to complete the video exercise titled Herman Miller: Organizational Behavior.

www.mymanagementlab.com
www.Zappos.com
What Is Organizational Behavior? CHAPTER 1 11

Complementing Intuition with Systematic Study Whether you’ve explicitly thought about it before or not, you’ve been “reading” people almost all your life by watching their actions and interpreting what you see, or by trying to predict what people might do under different conditions. The casual approach to reading others can often lead to erroneous predictions, but using a systematic approach can improve your accuracy.

Underlying the systematic approach in this text is the belief that behavior is not random. Rather, we can identify fundamental consistencies underlying the behavior of all individuals and modify them to reflect individual differences.

These fundamental consistencies are very important. Why? Because they allow predictability. Behavior is generally predictable, and the systematic study of behavior is a means to making reasonably accurate predictions. When we use the term systematic study, we mean looking at relationships, attempting to attri- bute causes and effects, and basing our conclusions on scientific evidence—that is, on data gathered under controlled conditions and measured and interpreted in a rigorous manner.

Evidence-based management (EBM) complements systematic study by basing managerial decisions on the best available scientific evidence. For example, we want doctors to make decisions about patient care based on the latest available evidence, and EBM argues that managers should do the same, thinking more scientifically about management problems. A manager might pose a question, search for the best available evidence, and apply the relevant information to the question or case at hand. You might wonder what manager would not base decisions on evidence, but the vast majority of management decisions are still made “on the fly,” with little to no systematic study of avail- able evidence.19

Systematic study and EBM add to intuition, or those “gut feelings” about what makes others (and ourselves) “tick.” Of course, the things you have come to believe in an unsystematic way are not necessarily incorrect. Jack Welch (for- mer CEO of General Electric) noted, “The trick, of course, is to know when to go with your gut.” But if we make all decisions with intuition or gut instinct, we’re likely working with incomplete information—like making an investment decision with only half the data about the potential for risk and reward.

Relying on intuition is made worse because we tend to overestimate the accu- racy of what we think we know. Surveys of human resource managers have also shown that many managers hold “commonsense” opinions regarding effective management that have been flatly refuted by empirical evidence.

We find a similar problem in chasing the business and popular media for management wisdom. The business press tends to be dominated by fads. As a writer for The New Yorker put it, “Every few years, new companies succeed, and they are scrutinized for the underlying truths they might reveal. But often there is no underlying truth; the companies just happened to be in the right place at the right time.”20 Although we try to avoid it, we might also fall into this trap. It’s not that the business press stories are all wrong; it’s that without a systematic approach, it’s hard to separate the wheat from the chaff.

Big Data Data has been used to evaluate behavior since at least 1749, when the word “statistic” was coined to mean a “description of the state.”21 Statistics back then were used for purposes of governance, but since the data collection methods

1-3 Show the value to OB of systematic study.

systematic study Looking at relation- ships, attempting to attribute causes and effects, and drawing conclusions based on scientific evidence.

evidence-based management (EBM) The basing of managerial decisions on the best available scientific evidence.

intuition An instinctive feeling not necessarily supported by research.

12 PART 1 Introduction

were clumsy and simplistic, so were the conclusions. “Big data”—the extensive use of statistical compilation and analysis—didn’t become possible until com- puters were sophisticated enough to both store and manipulate large amounts of information. Let’s look at the roots of the application of big data for business, which originated in the marketing department of online retailers.

Background It’s difficult to believe now, but not long ago companies treat- ed online shopping as a virtual point-of-sale experience: shoppers browsed websites anonymously, and sellers tracked sales data only on what customers bought. Gradually, though, online retailers began to track and act upon infor- mation about customer preferences that was uniquely available through the Internet shopping experience, information that was far superior to data gath- ered in simple store transactions. This enabled them to create more targeted

This is mostly a myth, but with a caveat. Management by walking around (MBWA) is an organization- al principle made famous with the 1982 publication of In Search of Excellence and based upon a 1970s initiative by Hewlett-Packard—in other words, it’s a dinosaur. Years of research indicate that effective management practices are not built around MBWA. But the idea of requiring managers at all levels of the organization to wander around their de- partments to observe, converse, and hear from employees continues as a common business practice.

Many companies expecting man- agers and executives to do regular “floor time” have claimed benefits from increased employee engage- ment to deeper management under- standing of company issues. A recent three-year study also suggested that a modified form of MBWA may signifi- cantly improve safety in organizations as employees become more mindful of following regulatory procedures when supervisors observe and monitor them frequently.

While MBWA sounds helpful, its limitations suggest that modern prac- tices focused on building trust and relationships are more effective for

management. Limitations include avail- able hours, focus, and application.

1. Available hours. Managers are charged with planning, organizing, coordinating, and controlling, yet even CEOs—the managers who should be the most in control of their time—report spending 53 percent of their average 55-hour workweek in time-wasting meetings.

2. Focus. MBWA turns management’s focus toward the concerns of employ- ees. This is good, but only to a de- gree. As noted by Jeff Weiner, CEO of LinkedIn, “Part of the key to time man- agement is carving out time to think, as opposed to constantly reacting. And during that thinking time, you’re not only thinking strategically, thinking proactively, thinking longer-term, but you’re literally thinking about what is urgent versus important.” Weiner and other CEOs argue that meetings dis- tract them from their purpose.

3. Application. The principle behind MBWA is that the more managers know their employees, the more ef- fective those managers will be. This is not always (or even often) true. As we’ll learn in Chapter 6, knowing something (or thinking we know it) should not

always lead us to act on only that infor- mation because our internal decision making is subjective. We need objec- tive data to make the most effective management decisions.

Based on the need for managers to dedicate their efforts to administering and growing businesses, and given the proven effectiveness of objective per- formance measures, it seems the time for MBWA is gone. Yet there is that one caveat: managers should know their employees well. As Rick Russell, CEO of Greer Laboratories, says, “Foster- ing close ties with your lieutenants is the stuff that gets results. You have to rally the troops. You can’t do it from a memo.” Management should therefore not substitute walking around for true management.

Sources: G. Luria and I. Morag, “Safety Man- agement by Walking Around (SMBWA): A Safety Intervention Program Based on Both Peer and Manager Participation,” Accident Analysis and Prevention (March 2012): 248– 57; J. S. Lublin, “Managers Need to Make Time for Face Time,” The Wall Street Journal (March 17, 2015), http://www.wsj.com/ ar ticles/managers-need-to-make-time- for-face-time-1426624214; and R. E. Silver- man, “Where’s the Boss? Trapped in a Meet- ing,” The Wall Street Journal (February 14, 2012), B1, B9.

Management by Walking around is the Most effective Management

Myth or Science?

http://www.wsj.com/articles/managers-need-to-make-timefor-face-time-1426624214
http://www.wsj.com/articles/managers-need-to-make-timefor-face-time-1426624214
http://www.wsj.com/articles/managers-need-to-make-timefor-face-time-1426624214
What Is Organizational Behavior? CHAPTER 1 13

marketing strategies than ever before. The bookselling industry is a case in point: Before online selling, brick-and-mortar bookstores could collect data about book sales only to create projections about consumer interests and trends. With the advent of Amazon, suddenly a vast array of information about consumer preferences became available for tracking: what customers bought, what they looked at, how they navigated the site, and what they were influenced by (such as promotions, reviews, and page presentation). The challenge for Amazon then was to identify which statistics were persistent, giving relatively constant outcomes over time, and predictive, showing steady causality between certain inputs and outcomes. The company used these statistics to develop al- gorithms to forecast which books customers would like to read next. Amazon then could base its wholesale purchase decisions on the feedback customers provided, both through these passive collection methods and through solicited recommendations for upcoming titles.

Current Usage No matter how many terabytes of data firms can collect or from how many sources, the reasons for data analytics include: predicting any event, from a book purchase to a spacesuit malfunction; detecting how much risk is incurred at any time, from the risk of a fire to that of a loan default; and preventing catastrophes large and small, from a plane crash to an overstock of product.22 With big data, U.S. defense contractor BAE Systems protects it- self from cyber-attacks, San Francisco’s Bank of the West uses customer data to create tiered pricing systems, and London’s Graze.com analyzes customers’ preferences to select snack samples to send with their orders.23

Naturally, big data has been used by technology companies like Google and Facebook, who rely on advertising dollars for revenue and thus need to predict user behavior. Companies like Netflix and Uber similarly use big data to pre- dict where and when customers may want to use their virtual services, although their revenue comes from subscribers to their services. Insurance firms pre- dict behavior to assess risks, such as the chance of traffic accidents, in order to set customer premiums. Even museums like the Solomon R. Guggenheim Museum in New York, the Dallas Museum of Art, and the Minneapolis Institute of Arts analyze data from transmitters, kiosks, and surveys to cater to their pay- ing guests.24

Online retailers like eBay and Amazon that market tangible products through online platforms also rely on big data to predict what will sell. For orga- nizations like Nielson Holdings, which tracks television and radio watching, the results of data analyses are the product they sell. Still other organizations collect big data but do not directly use it. These are often organizations whose primary business is not online. Kroger, a U.S. grocery store chain, electronically collects information from 55 million customers who have loyalty cards and sells the data to vendors who stock Kroger’s shelves.25 Sometimes even technology companies simply sell their data; Twitter sells 500 million tweets a day to four data assimila- tion companies.26

New trends While accessibility to data increases organizations’ ability to pre- dict human behavioral trends, the use of big data for understanding, helping, and managing people is relatively new but holds promise. In fact, research on 10,000 workers in China, Germany, India, the United Kingdom, and the Unit- ed States indicated that employees expect the next transformation in the way people work will rely more on technological advancements than on any other factor, such as demographic changes.27

It is good news for the future of business that researchers, the media, and company leaders have identified the potential of data-driven management and

www.Graze.com
14 PART 1 Introduction

decision making. A manager who uses data to define objectives, develop theo- ries of causality, and test those theories can determine which employee activities are relevant to the objectives.28 Big data has implications for correcting man- agement assumptions and increasing positive performance outcomes. Increas- ingly, it is applied toward making effective decisions (Chapter 6) and managing human resources (HR; Chapter 17). It is quite possible that the best use of big data in managing people will come from organizational behavior and psychol- ogy research, where it might even help employees with mental illnesses monitor and change their behavior.29

limitations As technological capabilities for handling big data have increased, so have issues of privacy. This is particularly true when data collection includes surveillance instruments. For instance, an experiment in Brooklyn, New York, has been designed to improve the quality of life for residents, but the research- ers will collect intensive data from infrared cameras, sensors, and smartphone Wi-Fi signals.30 Through similar methods of surveillance monitoring, a bank call center and a pharmaceutical company found that employees were more productive with more social interaction, so they changed their break time poli- cies so more people took breaks together. They then saw sales increase and turnover decrease. Bread Winners Café in Dallas, Texas, constantly monitors all employees in the restaurant through surveillance and uses the data to promote or discipline its servers.31

These big data tactics and others might yield results—and research indi- cates that, in fact, electronic performance monitoring does increase task per- formance and citizenship behavior (helping behaviors towards others), at least in the short term.32 But critics point out that after Frederick Taylor introduced surveillance analytics in 1911 to increase productivity through monitoring and feedback controls, his management control techniques were surpassed by Alfred Sloan’s greater success with management outcomes, achieved by provid- ing meaningful work to employees.33 This brings up a larger concern: What do people think about big data when they are the source of the data? Organiza- tions using big data run the risk of offending the very people they are trying to influence: employees and customers. As Alderman Bob Fioretti said about the 65 sensors installed on Chicago’s streets, “This type of invasion is a very slippery slope.”34

We must keep in mind that big data will always be limited in predicting behavior, curtailing risk, and preventing catastrophes. In contrast to the repli- cable results we can obtain in the sciences through big data analytics, human behavior is often capricious and predicated on innumerable variables. Other- wise, our decision making would have been taken over by artificial intelligence by now! But that will never be a worthy goal.35 Management is more than the sum of data.

Therefore, we are not advising you to throw intuition out the window. In dealing with people, leaders often rely on hunches, and sometimes the out- comes are excellent. At other times, human tendencies get in the way. Alex Pentland, a celebrated MIT data scientist, proposes a new science termed social physics, which is based on improving the way ideas and behaviors travel. Stud- ies on social physics would lead to subtler forms of data collection and analysis than some of the more intrusive surveillance methods mentioned previously, while still intending to inform managers on how to help employees focus their energies.36 The prudent use of big data, along with an understanding of human behavioral tendencies, can contribute to sound decision making and ease natu- ral biases. What we are advising is to use evidence as much as possible to inform your intuition and experience. That is the promise of OB.

What Is Organizational Behavior? CHAPTER 1 15

Disciplines That Contribute to the OB Field OB is an applied behavioral science built on contributions from a number of behavioral disciplines, mainly psychology and social psychology, sociology, and anthropology. Psychology’s contributions have been principally at the individu- al or micro level of analysis, while the other disciplines have contributed to our understanding of macro concepts such as group processes and organization. Exhibit 1-3 is an overview of the major contributions to the study of organiza- tional behavior.

Psychology Psychology seeks to measure, explain, and sometimes change the behavior of humans and other animals. Contributors to the knowledge of OB are learning theorists, personality theorists, counseling psychologists and, most important, industrial and organizational psychologists.

1-4 Identify the major behavioral science disciplines that contribute to OB.

psychology The science that seeks to measure, explain, and sometimes change the behavior of humans and other animals.

toward an oB DisciplineExhibit 1-3

Sociology

Social psychology

Anthropology

Psychology

Behavioral science

OutputUnit of analysis

Contribution

Learning Motivation Personality Emotions Perception Training Leadership effectiveness Job satisfaction Individual decision making Performance appraisal Attitude measurement Employee selection Work design Work stress

Behavioral change Attitude change Communication Group processes Group decision making

Formal organization theory Organizational technology Organizational change Organizational culture

Comparative values Comparative attitudes Cross-cultural analysis

Organizational culture Organizational environment Power

Communication Power Conflict Intergroup behavior

Study of organizational

behavior

Organization system

Individual

Group

16 PART 1 Introduction

that everyone likes complex and challenging work (a general concept). Why? Because not everyone wants a challenging job. Some people prefer routine over varied work, or simple over complex tasks. A job attractive to one person may not be to another; its appeal is contingent on the person who holds it. Often, we’ll find both general effects (money does have some ability to motivate most of us) and contingencies (some of us are more motivated by money than others, and some situations are more about money than others). We’ll best understand OB when we realize how both (general effects, and the contingencies that affect them) often guide behavior.

Challenges and Opportunities for OB Understanding organizational behavior has never been more important for managers. Take a quick look at the dramatic changes in organizations. The typi- cal employee is getting older; the workforce is becoming increasingly diverse; and global competition requires employees to become more flexible and cope with rapid change.

As a result of these changes and others, employment options have adapted to include new opportunities for workers. Exhibit 1-4 details some of the types of options individuals may find offered to them by organizations or for which they would like to negotiate. Under each heading in the exhibit, you will find a grouping of options from which to choose—or combine. For instance, at one point in your career you may find yourself employed full time in an office in a localized, nonunion setting with a salary and bonus compensation pack- age, while at another point you may wish to negotiate for a flextime, virtual

contingency variables Situational factors: variables that moderate the relationship between two or more variables.

1-6 Identify managers’ challenges and opportunities in applying OB concepts.

Early industrial/organizational psychologists studied the problems of fatigue, boredom, and other working conditions that could impede efficient work per- formance. More recently, their contributions have expanded to include learn- ing, perception, personality, emotions, training, leadership effectiveness, needs and motivational forces, job satisfaction, decision-making processes, perfor- mance appraisals, attitude measurement, employee-selection techniques, work design, and job stress.

Social Psychology Social psychology, generally considered a branch of psychology, blends concepts from both psychology and sociology to focus on people’s influence on one another. One major study area is change—how to implement it and how to reduce barriers to its acceptance. Social psychologists also contribute to measuring, understanding, and changing attitudes; identifying communication patterns; and building trust. Finally, they have made important contributions to our study of group behavior, power, and conflict.

Sociology While psychology focuses on the individual, sociology studies people in rela- tion to their social environment or culture. Sociologists have contributed to OB through their study of group behaviors in organizations, particularly formal and complex organizations. Perhaps most important, sociologists have studied organizational culture, formal organization theory and structure, organization- al technology, communications, power, and conflict.

anthropology Anthropology is the study of societies to learn about human beings and their activities. Anthropologists’ work on cultures and environments has helped us understand differences in fundamental values, attitudes, and behavior among people in different countries and within different organizations. Much of our current understanding of organizational culture, organizational climate, and differences among national cultures is a result of the work of anthropologists or those using their methods.

There Are Few Absolutes in OB Laws in the physical sciences—chemistry, astronomy, physics—are consistent and apply in a wide range of situations. They allow scientists to generalize about the pull of gravity or to be confident about sending astronauts into space to repair satellites. Human beings are complex, and few, if any, simple and uni- versal principles explain organizational behavior. Because we are not alike, our ability to make simple, accurate, and sweeping generalizations about ourselves is limited. Two people often act very differently in the same situation, and the same person’s behavior changes in different situations. For example, not every- one is motivated by money, and people may behave differently at a religious service than they do at a party.

That doesn’t mean, of course, that we can’t offer reasonably accurate expla- nations of human behavior or make valid predictions. It does mean that OB concepts must reflect situational, or contingency, conditions. We can say x leads to y, but only under conditions specified in z—the contingency variables. The science of OB was developed by applying general concepts to a particu- lar situation, person, or group. For example, OB scholars would avoid stating

social psychology An area of psychology that blends concepts from psychology and sociology to focus on the influence of people on one another.

sociology The study of people in relation to their social environment or culture.

anthropology The study of societies to learn about human beings and their activities.

1-5 Demonstrate why few absolutes apply to OB.

What Is Organizational Behavior? CHAPTER 1 17

that everyone likes complex and challenging work (a general concept). Why? Because not everyone wants a challenging job. Some people prefer routine over varied work, or simple over complex tasks. A job attractive to one person may not be to another; its appeal is contingent on the person who holds it. Often, we’ll find both general effects (money does have some ability to motivate most of us) and contingencies (some of us are more motivated by money than others, and some situations are more about money than others). We’ll best understand OB when we realize how both (general effects, and the contingencies that affect them) often guide behavior.

Challenges and Opportunities for OB Understanding organizational behavior has never been more important for managers. Take a quick look at the dramatic changes in organizations. The typi- cal employee is getting older; the workforce is becoming increasingly diverse; and global competition requires employees to become more flexible and cope with rapid change.

As a result of these changes and others, employment options have adapted to include new opportunities for workers. Exhibit 1-4 details some of the types of options individuals may find offered to them by organizations or for which they would like to negotiate. Under each heading in the exhibit, you will find a grouping of options from which to choose—or combine. For instance, at one point in your career you may find yourself employed full time in an office in a localized, nonunion setting with a salary and bonus compensation pack- age, while at another point you may wish to negotiate for a flextime, virtual

contingency variables Situational factors: variables that moderate the relationship between two or more variables.

1-6 Identify managers’ challenges and opportunities in applying OB concepts.

Sources: J. R. Anderson Jr., et al., “Action Items: 42 Trends Affecting Benefits, Compensation, Training, Staffing and Technology,” HR Magazine (January 2013) p. 33; M. Dewhurst, B. Hancock, and D.

Ellsworth, “Redesigning Knowledge Work,” Harvard Business Review (January–February 2013), pp. 58–64; E. Frauenheim, “Creating a New Contingent Culture,” Workforce Management (August 2012),

pp. 34–39; N. Koeppen, “State Job Aid Takes Pressure off Germany,” The Wall Street Journal (February 1, 2013), p. A8; and M. A. Shaffer, M. L. Kraimer, Y.-P. Chen, and M. C. Bolino, “Choices, Chal-

lenges, and Career Consequences of Global Work Experiences: A Review and Future Agenda,” Journal of Management (July 2012), pp. 1282–1327.

employment optionsExhibit 1-4

Employed

Underemployed/ underutilized

Re-employed

Unemployed/jobless

Entrepreneur

Retired

Furloughed

Laid off

Categories of Employment

Job seeking

Places of Employment

Anchored (office/cubicle)

Floating (shared space)

Virtual

Flexible

Work from home

Compensation for Employment

Salary

Hourly

Overtime

Bonus

Contract

Time off

Benefits

Conditions of Employment

Local

Expatriate

Flexpatriate

International business traveler

Visa employee

Short-term assignee

Union/nonunion employee

Types of Employment

Job share

Contingent

Independent contractor

Temporary

Intern

Full-time

Part-time

Flextime

Reduced hours

18 PART 1 Introduction

position and choose to work from overseas for a combination of salary and extra paid time off.

In short, today’s challenges bring opportunities for managers to use OB con- cepts. In this section, we review some of the most critical issues confronting managers for which OB offers solutions—or at least meaningful insights toward solutions.

economic Pressures When the U.S. economy plunged into a deep and prolonged recession in 2008, virtually all other large economies around the world followed suit. Layoffs and job losses were widespread, and those who survived the ax were often asked to accept pay cuts. When times are bad, as they were during the recession, manag- ers are on the front lines with employees who are asked to make do with less, who worry about their futures, and who sometimes must be fired. The differ- ence between good and bad management can be the difference between profit and loss or, ultimately, between business survival and failure.

Managing employees well when times are tough is just as hard as when times are good, if not harder. In good times, understanding how to reward, satisfy, and retain employees is at a premium. In bad times, issues like stress, decision making, and coping come to the forefront.

Continuing Globalization Organizations are no longer constrained by national borders. Samsung, the largest South Korean business conglomerate, sells most of its products to organizations in other countries, Burger King is owned by a Brazilian firm, and McDonald’s sells hamburgers in more than 118 countries on six continents. Even what is arguably the U.S. company with the strongest U.S. identity— Apple— employs twice as many workers outside the United States as it does inside the country. And all major automobile makers now manufacture cars outside their borders; Honda builds cars in Ohio, Ford in Brazil, Volkswagen in Mexico, and both Mercedes and BMW in the United States and South Africa.

The world has become a global village. In the process, the manager’s job has changed. Effective managers will anticipate and adapt their approaches to the global issues we discuss next.

increased Foreign assignments You are increasingly likely to find yourself in a foreign assignment—transferred to your employer’s operating division or sub- sidiary in another country. Once there, you’ll have to manage a workforce very different in needs, aspirations, and attitudes from those you are used to back home. To be effective, you will need to understand everything you can about your new location’s culture and workforce—and demonstrate your cultural sen- sitivity—before introducing alternate practices.

Working with People from Different Cultures Even in your own country, you’ll find yourself working with bosses, peers, and other employees born and raised in different cultures. What motivates you may not motivate them. Or your communication style may be straightforward and open, which others may find uncomfortable and threatening. To work effectively with people from differ- ent cultures, you need to understand how their culture and background have shaped them and how to adapt your management style to fit any differences.

overseeing Movement of Jobs to Countries with low-Cost labor It is increas- ingly difficult for managers in advanced nations, where the minimum wage

What Is Organizational Behavior? CHAPTER 1 19

can be as high as $16.88 an hour, to compete against firms that rely on workers from developing nations where labor is available for as little as nine cents an hour.37 In a global economy, jobs tend to flow where lower costs give busi- nesses a comparative advantage, though labor groups, politicians, and local community leaders see the exporting of jobs as undermining the job market at home. Managers face the difficult task of balancing the interests of their organizations with their responsibilities to the communities in which they operate.

adapting to Differing Cultural and regulatory Norms To be effective, managers need to know the cultural norms of the workforce in each country where they do business. For instance, in some countries a large percentage of the workforce enjoys long holidays. There will be country and local regulations to consider, too. Managers of subsidiaries abroad need to be aware of the unique finan- cial and legal regulations applying to “guest companies” or else risk violating them. Violations can have implications for their operations in that country and also for political relations between countries. Managers also need to be cogni- zant of differences in regulations for competitors in that country; many times, understanding the laws can lead to success or failure. For example, knowing lo- cal banking laws allowed one multinational firm—the Bank of China—to seize control of a storied (and very valuable) London building, Grosvenor House, from under the nose of the owner, the Indian hotel group Sahara. Management at Sahara contends that the loan default that led to the seizure was a misunder- standing regarding one of their other properties in New York.38 Globalization can get complicated.

Workforce Demographics The workforce has always adapted to variations in economies, longevity and birth rates, socioeconomic conditions, and other changes that have widespread impact. People adapt to survive, and OB studies the way those adaptations

Guy Woolaert, senior vice president and chief technical and innovation officer of the Coca-Cola Company, has worked effectively with people from many cultures. He learned from his 20 years of assignments abroad in Europe, the Pacific, and other geographic regions how to adapt his management style to reflect the values of different countries. Source: Robin Nelson/ZUMA Press/Newscom

20 PART 1 Introduction

affect individuals’ behavior. For instance, even though the 2008 global reces- sion ended years ago, some trends from those years are continuing: some people who have been long unemployed have left the workforce,39 while others have cobbled together several part-time jobs40 or settled for on-demand work.41 Further options that have been particularly popular for younger educated workers have included obtaining specialized industry training after college,42 accepting full-time jobs that are lower-level,43 and starting their own companies.44 As students of OB, we can investigate what factors lead employees to make various choices and how their experiences affect their perceptions of their workplaces. In turn, this can help us predict organiza- tional outcomes.

Longevity and birth rates have also changed the dynamics in organiza- tions; global longevity rates have increased six years in a very short time (since 1990),45 while birth rates are decreasing for many developed countries, trends that together indicate a lasting shift toward an older workforce. OB research will help explain what this means for attitudes, organizational culture, leader- ship, structure, and communication. Finally, socioeconomic shifts have a pro- found effect on workforce demographics. The days when women stayed home because it was expected are just a memory in some cultures, while in others, women face significant barriers to entry into the workforce (see OB Poll). We are interested in how these women fare in the workplace, and how their condi- tions can be improved. This is just one illustration of how cultural and socio- economic changes affect the workplace, but it is one of many. We will discuss how OB can provide understanding and insight on workforce issues through- out this text.

PerSOnAL InvenTOry ASSeSSMenTS Multicultural awareness Scale Any study of organizational behavior (OB) starts with knowledge of yourself. As one step, take this PIA to determine your multicultural awareness.

P I A PERSONAL INVENTORY ASSESSMENT

Ob POLL

100%

90%

80%

70%

60%

50%

40%

30%

1970

64.4% 67.6%

2022 (Projected)

56.0%

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025

40.8%

53.2%

76.2%76.2% Men

Women

Percentage of Men and Women Working

Sources: U.S. Bureau of Labor Statistics, “Women in the Labor Force: A Datebook” (2014), www.bls.gov/opub/reports/cps/women-in-the-labor-force-

a-databook-2014.pdf; and U.S. Bureau of Labor Statistics, “Economic News Release,” (2013), http://www.bls.gov/news.release/ecopro.t02.htm.

http://www.bls.gov/opub/reports/cps/women-in-the-labor-force-a-databook-2014.pdf
http://www.bls.gov/opub/reports/cps/women-in-the-labor-force-a-databook-2014.pdf
http://www.bls.gov/news.release/ecopro.t02.htm
What Is Organizational Behavior? CHAPTER 1 21

Workforce Diversity One of the most important challenges for organizations is workforce diversity, a trend by which organizations are becoming more heterogeneous in terms of employees’ gender, age, race, ethnicity, sexual orientation, and other character- istics. Managing this diversity is a global concern. Though we have more to say about it in the next chapter, suffice it to say here that diversity presents great opportunities and poses challenging questions for managers and employees. How can we leverage differences within groups for competitive advantage? Should we treat all employees alike? Should we recognize individual and cultural differences? What are the legal requirements in each country? Does increasing diversity even matter?

Customer Service Service employees include technical support representatives, fast-food workers, sales clerks, nurses, automobile repair technicians, consultants, financial plan- ners, and flight attendants. The shared characteristic of their jobs is substantial interaction with an organization’s customers. OB can help managers increase the success of these interactions by showing how employee attitudes and behav- ior influence customer satisfaction.

Many an organization has failed because its employees failed to please cus- tomers. Management needs to create a customer-responsive culture. OB can provide considerable guidance in helping managers create such cultures—in which employees establish rapport with customers, put customers at ease, show genuine interest, and are sensitive to a customer’s individual situation.46

People Skills As you proceed through the chapters of this text, we’ll present relevant con- cepts and theories that can help you explain and predict the behavior of people at work. You’ll also gain insights into specific people skills you can use on the job. For instance, you’ll learn ways to design motivating jobs, techniques for improving your management skills, and how to create more effective teams.

workforce diversity The concept that organizations are becoming more heteroge- neous in terms of gender, age, race, ethnicity, sexual orientation, and other characteristics.

A Whole Foods Market customer learns how to grind flour with the help of the store’s cooking coach, whose job is to provide information about cooking ingredients, methods, and techniques. Cooking coaches embody the best of the retailer’s customer- responsive culture of serving people with competency, efficiency, knowl- edge, and flair. Source: Evy Mages/The Washington Post/Getty

Images

22 PART 1 Introduction

Networked organizations Networked organizations allow people to communicate and work together even though they may be thousands of miles apart. Independent contractors can telecommute via computer and change employers as the demand for their services changes. Software programmers, graphic designers, systems analysts, technical writers, photo researchers, book and media editors, and medical tran- scribers are just a few examples of people who can work from home or other non-office locations.

The manager’s job is different in a networked organization. Motivat- ing and leading people and making collaborative decisions online require different techniques than when individuals are physically present in a single location. As more employees do their jobs by linking to others through net- works, managers must develop new skills. OB can provide valuable insights to help hone those skills.

Social Media As we will discuss in Chapter 11, social media in the business world is here to stay. Despite its pervasiveness, many organizations continue to struggle with em- ployees’ use of social media in the workplace. In February 2015, a Texas pizzeria fired an employee before she showed up for her first day of work after she tweet- ed unflattering comments about her future job. In December 2014, Nordstrom fired an Oregon employee who had posted a personal Facebook comment seeming to advocate violence against white police officers.47 These examples show that social media is a difficult issue for today’s manager, presenting both a challenge and an opportunity for OB. For instance, how much should HR look into a candidate’s social media presence? Should a hiring manager read the candidate’s Twitter feeds, or just do a quick perusal of her Facebook profile? We will discuss this issue later in the text.

Once employees are on the job, many organizations have policies about accessing social media at work—when, where, and for what purposes. But what about the impact of social media on employee well-being? One recent study found that subjects who woke up in a positive mood and then accessed Facebook frequently found their mood decreased during the day. Moreover, subjects who checked Facebook frequently over a two-week period reported a decreased level of satisfaction with their lives.48 Managers—and OB—are trying to increase employee satisfaction, and therefore improve and enhance positive organizational outcomes. We will discuss these issues further in Chapters 3 and 4.

employee Well-Being at Work The typical employee in the 1960s or 1970s showed up at a specified workplace Monday through Friday and worked for clearly defined 8- or 9-hour chunks of time. That’s no longer true for a large segment of today’s workforce, since the definition of the workplace has expanded to include anywhere a laptop or smartphone can go. However, even if employees work flexible hours at home or from half a continent away, managers need to consider their well- being at work.