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Case Analysis

Organizational functioning is complex. No single theory or model of organizational behavior has emerged as the best or most practical. Thus, managers must be able to probe and diagnose organizational situations when they attempt to understand, interpret, and predict behavior. The Tenth Edition of Organizational Behavior and Management devotes considerable attention to encouraging the development of these probing and diagnostic skills. The author team of Ivancevich, Konopaske, and Matteson presents the most current theories, research, and applications while retaining the classic work in organizational behavior.

NEW TO THE TENTH EDITION: Addition of current/relevant topics, including: fastest-growing service jobs in the U.S.; personal use of social media at work; cloud and mobile computing; W.L. Gore’s organic organizational structure; Harvard students sign an MBA oath; Nooglers learn the culture at Google; “Laughter-Yoga” at Zappos; and more!

New cases have been added, including: “Organizational Culture Can Help Reduce Burnout in Hospitals;” “The Netflix Decision that Could Cost the Company 800,000 Subscribers;” “The (Mis)Behavior of Successful CEOs Leads to Their Departures;” and more!

To learn more, please visit the book’s Online Learning Center at http://www.mhhe.com/ivancevichob10e

Tenth Edition

John M. Ivancevich Robert Konopaske Michael T. Matteson

Organizational

Behavior & Management

Tenth Edition

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Tenth Edition

John M. Ivancevich Hugh Roy and Lillie Cranz Cullen Chair and Professor of Organizational Behavior and Management, C. T. Bauer College of Business, University of Houston

Robert Konopaske Associate Professor of Management, McCoy College of Business Administration, Texas State University

Michael T. Matteson Professor Emeritus Organizational Behavior and Management, C. T. Bauer College of Business, University of Houston

Organizational Behavior and Management

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This book is dedicated to our students and colleagues who inspire and challenge us.

ORGANIZATIONAL BEHAVIOR AND MANAGEMENT, TENTH EDITION

Published by McGraw-Hill, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY, 10020. Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. Printed in the United States of America. Previous editions © 2011, 2008 and 2005. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning.

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

This book is printed on acid-free paper.

1 2 3 4 5 6 7 8 9 0 QVR/QVR 1 0 9 8 7 6 5 4 3

ISBN 978-0-07-802946-2 MHID 0-07-802946-5

Senior Vice President, Products & Markets: Kurt L. Strand Vice President, Content Production & Technology Services: Kimberly Meriwether David Editorial Director: Paul Ducham Brand Manager: Michael Ablassmeir Development Editor: Jane Beck Marketing Manager: Elizabeth Trepkowski Director, Content Production: Terri Schiesl

Photo credits: Klaus Tiedge/Getty Images, pages 3, 33; Ingram Publishing, pages 63, 89, 111, 141, 169, 205, 231; Purestock/SuperStock, pages 267, 303, 335; Fuse/Getty Images, pages 367, 401, 433; © Stockbyte/Getty Images, pages 473, 505.

Library of Congress Cataloging-in-Publication Data

Ivancevich, John M. Organizational behavior and management / John Ivancevich ((Deceased), Hugh Roy and Lillie Cranz Cullen Chair and Professor of Organizational Behavior and Management, C. T. Bauer College of Business, University of Houston, Robertá Konopaske, Associate Professor of Management, McCoy College of Business Administration, Texas State University. — Tenth Edition. pages cm Includes index. ISBN-978-0-07-802946-2 (alk. paper) ISBN-0-07-802946-5 (alk. paper) 1. Organizational behavior. I. Konopaske, Robert. II. Title. HD58.7.I89 2013 658.4—dc23 2012044541

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

www.mhhe.com

Senior Project Manager: Lisa A. Bruflodt Buyer: Jennifer Pickel Media Project Manager: Prashanthi Nadipalli Cover Designer: Studio Montage, St. Louis, MO. Cover Image: Fuse/Getty Images Typeface: Times New Roman Compositor: Aptara®, Inc. Printer: Quad/Graphics

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iii

About the Authors John (Jack) M. Ivancevich (August 16, 1939–October 26, 2009): In Memoriam. Hugh Roy and Lillie Cranz Cullen Chair and Professor of Organizational Behavior and Management, C. T. Bauer College of Business, University of Houston; B.S. from Purdue University, and MBA and DBA from the University of Maryland. Never one to miss a deadline, Jack submitted his last revisions for this textbook during the summer of 2009. A few months later, he passed away with quiet dignity surrounded by loved ones. On that day, the management discipline lost a passionate and award-winning educator, and an influential leader with an incomparable work ethic and sense of integrity. Jack led by example, and those of us who were fortunate enough to know him, were inspired to work harder and reach higher than we ever thought possible. Jack was committed to higher education and the creation and dissemination of management knowledge. He was comfortable in the classroom and would encourage students to think critically about and apply the concepts and theories of organiza- tional behavior and management to their lives. Jack had an “open door” policy, and spent countless hours helping students and answering their questions. His reputation as a tough teacher was softened by his appreciation for the need of many students to balance a desire for education with a full-time job and family demands. Among Jack’s most valued honors was the Ester Farfel Award for R e search, Teaching, and Service Excellence, the highest honor bestowed to a University of Houston faculty member. Complementing his passion for teaching, Jack loved to write books. He tried to write at least 300 days a year, averaging about 1,200 words per day. Over a 40-year pe- riod, Jack reached well over a million students by authoring or co-authoring 88 books about various aspects of management and organizational behavior. In 1987, the first edition of Organiz a tional B e havior and Management (with Michael T. Matteson) was published. Preceding this textbook were several others like the award-winning and pop- ular textbook Organ i zations: Behavior, Structure, Pro c esses (co-authored with James L. Gibson and James H. Donnelly); which was first published in 1973 and is currently in its 14th edition. In 2005, Organiz a tions (11th edition) received the McGuffey Longevity Award from the Text and Academic Authors Association. This award recognizes text- books and learning materials whose excellence has been demonstrated over time. A sample of Jack’s other textbooks include: Human Resource Management, Global Man- agement and Organizational Behavior (co-authored with Robert Konopaske), Manage- ment and Organiz a tional Behavior Classics (co-authored with Michael T. Matteson), Fundamentals of Ma n agement: Functions, Behavior, Models (co-authored with James L. Gibson and James H. Donnelly), and Management: Quality and Competitiv e ness (co-authored with Peter Lorenzi, Steven Skinner, and Philip Crosby). Jack was not only an accomplished educator and book author but also a prolific and highly respected researcher. Well known for his highly disciplined work ethic, Jack authored or co-authored some 160 research articles, which were published in such journals as Academy of Management Jou r nal, Academy of Management Review, Ad- ministrative Science Quarterly, Journal of Applied Ps y chology, and Harvard Business Review . His research was highly influential and explored a range of management and organizational behavior topics, including job stress, white-collar crime, diversity

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iv About the Authors

management, global assignments, job loss, absenteeism, job satisfaction, goal setting, job performance, training method effectiveness, and organizational climate. The diver- sity of Jack’s research reflected the complex and interrelated nature of management issues in organizations. In 2000, in recognition of publishing a substantial number of refereed articles in Academy of Management journals, Jack was inducted into the Academy of Management’s Journals Hall of Fame as one of the first thirty-three Charter Members. This is an impressive achievement when considering that in 2000, the Academy of Management had approximately 13,500 members. In addition to teaching, writing books and conducting research, Jack applied his knowledge of organizational behavior and management to the several leadership posi- tions he held since joining the University of Houston faculty in 1974. In 1975, he was named Chair of the Department of Organizational Behavior and Management, and in the following year, Jack became the Associate Dean of Research for the College of Business Administration at UH. In 1979, Jack was awarded the Hugh Roy and Lillie Cranz Cullen Chair of Organizational Beha v ior and Management, among the most prestigious positions at the University of Houston. From 1988–1995, he served as Dean of the UH College of Business Administration. In 1995, Jack was named UH Executive Vice President for Academic Affairs and Provost, a position he held for two years. Through visionary, performance-driven, and principled leadership, Jack left a lasting and meaningful imprint on the entire University of Houston community, including internal constituents like fellow administrators, Deans, program directors, faculty, staff, and students, as well as external stakeholders like legislators, donors, alumni, and area company executives. His accomplishments were even more extraor- dinary, given the fact that Jack continued to teach classes, write books, and publish research articles while holding these myriad leadership positions. Jack made innumerable contributions to all facets of higher education, all of which will be felt for years to come. Perhaps one of Jack’s greatest and longest lasting legacies will be from the many individuals he mentored during his 45 years in higher education. As busy as he was throughout his entire career, Jack was extremely generous with his time and made it a priority to mentor a large number of individuals, including current and former students, junior faculty, colleagues from the publishing industry, and many others. He wanted people to succeed and would do everything he could to help them accomplish their goals. Jack would often invite younger faculty members to collaborate with him on research projects. As a member of 80 doctoral and master’s committees, Jack relished his role as mentor and would spend hours with graduate students, helping and guiding them through the process of conducting original research for their theses or dissertations. Jack was always willing to make phone calls and write detailed letters of recommendation on behalf of his students to help them get hired or, later in their careers, get promoted or be awarded tenure. He invested heavily in these individuals and expected hard work and commitment to excellence in return. Many of these for- mer graduate students are professors at universities and colleges throughout the United States and now find themselves mentoring and inspiring their own students. On a personal note, Jack was my mentor, colleague, and friend. Words cannot cap- ture how grateful and honored I feel to have worked so closely with him on several organizational behavior textbooks and research projects over the past 12 years. We became acquainted in 1999, after Jack agreed to be my dissertation chair at the University of Houston. Given Jack’s stature and commanding presence, I was a little intimidated by him in the beginning but quickly realized he was a “gentle giant” who could switch rapidly between discussions of research, books, academic careers, teaching, and the importance of being a good family man and father, and achieving balance in

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About the Authors v

one’s life. Jack was a great story teller and especially liked relating tales of his early years in the south side of Chicago. Like me, he was proud of the fact that he grew up in a multiethnic environment where one’s parents, extended family, and family friends were always around to keep an eye on the kids in the neighborhood, while always ready to offer them a delicious home-cooked meal. Jack taught me many things; some lessons were passed along during thoughtful conversations, but most came by observ- ing him in action. Jack taught me to take life “head on” with a strong, positive, and can-do attitude while never losing sight of the importance of being a loving and com- mitted husband and father. He will be sorely missed by all of us who were fortunate to have been touched by his warm friendship and guided by his generous spirit. Jack is survived by his wife of 37 years, Margaret (Pegi) Karsner Ivancevich; son Daniel and wife Susan; daughter Jill and husband David Zacha, Jr.; and grandchil- dren Kathryn Diane and Amanda Dana Ivancevich, and Hunter David Michael, Hailey Dana, and Hannah Marie Zacha. Jack was preceded in death by his beloved daughter Dana and by his first wife, Diane Frances Murphy Ivancevich.

Robert Konopaske December 28, 2009

Robert Konopaske is Associate Professor of Management at the McCoy College of Busi- ness Administration, Texas State University. He earned his Doctoral Degree in manage- ment from the University of Houston, a Master’s Degree in international business studies from the University of South Carolina, and an undergraduate degree at Rutgers College, Rutgers University. His teaching and research interests focus on international management, organizational behavior, and human resource management issues. The recipient of numerous teaching awards at four different universities, Rob is also the co-author of several textbooks, including: Organizations: Behavior, Structure, Pro- cesses (11 th , 12 th , 13 th , and 14th editions), Organizational Behavior and Management (7th, 8th, 9th, and 10th editions), Human Resource Manag e ment (12th edition) and Global Management and Organizational Behavior. He has published numerous aca- demic articles in Jou r nal of Applied Psychology, Academy of Management Executive, Journal of Management Ed u cation, Journal of Business Research, Work and Stress, Hu- man Resource Management Review , Manag e ment International Review , Bus i ness Hori- zons, Human Resource Management, and International Journal of Human Resource Management . He has served on the editorial boards of two international management journals, and has held multiple national leadership positions for the Academy of Management’s Human Resource Division. Rob has worked in the private, nonprofit, and education sectors, and has conducted research-based consulting for such global companies as Credit Suisse, PricewaterhouseCoopers, and KPMG.

Michael T. Matteson is an Emeritus Professor of Management at the University of Houston. After receiving his Ph.D. in industrial psychology from the University of Houston, Mike taught graduate and undergraduate courses in the C. T. Bauer College of Business for over three decades. He also served as Associate Dean and Department Chairperson at the University of Houston. Mike has published numerous research and theory-based articles on occupational stress, managing stress, preventive health, work-site health promotion, intervention programs, and research methods. He has consulted with and provided training programs for organizations in numerous indus- tries. He is the co-author or co-editor of a number of textbooks and trade books in- cluding Stress and Work: A Managerial Perspective, Management and Organizational B e havior Classics, and Controlling Work Stress.

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vi

Brief Contents Preface xiii

PART ONE The Field of Organizational Behavior 1 1 Effective Managers Understand

Organizational Behavior 3 2 National and Organizational

Culture 33

PART TWO Understanding and Managing Individual Behavior 61 3 Individual Differences at Work 63 4 Perceptions and Attributions 89 5 Motivation 111 6 Job Design and Performance 141 7 Evaluation and Rewards Influence

Behavior 169 8 Managing Misbehavior 205 9 Managing Individual Stress 231

PART THREE Group Behavior and Interpersonal Influence 265 10 Groups and Teams 267 11 Managing Conflict and Negotiations 303 12 Power and Politics 335

PART FOUR Organizational Processes 365 13 Communicating Effectively 367 14 Decision Making 401 15 Leadership 433

PART FIVE Organizational Design, Change, and Innovation 471 16 Organizational Structure and

Design 473 17 Managing Organizational Change 505

APPENDIX A: Quantitative and Qualitative Research Techniques for Studying Organiz a tional Behavior and Management Practice 537

GLOSSARY 547

ENDNOTES 559

INDEXES 611

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vii

Contents Preface xiii

PART ONE THE FIELD OF ORGANIZATIONAL BEHAVIOR 1

Chapter 1 Effective Managers Understand Organizational Behavior 3 The Evolution of Management 5

Scientific Management 6 Administrative Management 7

Why Study Organizational Behavior? 7 Leaders and Organizational Behavior 8 The Hawthorne Studies 9

Systems Theory and Organizational Effectiveness 11

Quality 12 Productivity 13 Efficiency 13 Satisfaction 13 Development 14

Environmental Forces Reshaping Management Practice 14 Framing the Study of Organizational Behavior 19

The Organization’s Environment 19 Understanding and Managing Individual Behavior 19 Group Behavior and Interpersonal Influence 22 Organizational Processes 24 Organizational Design, Change, and Innovation 26

Summary of Key Points 27 Review and Discussion Questions 27 Exercise 28 Case 30

Chapter 2 National and Organizational Culture 33 National Culture and Values Influence Workplace Behavior 34 Organizational Culture Matters 38

Organizational Culture Defined 38 Organizational Culture and Its Effects 40

Creating Organizational Culture 41 Influencing Culture Change 44 Socialization Sustains the Culture 46

Anticipatory Socialization 47 Accommodation 48 Role Management 48

Characteristics of Effective Socialization 48 Mentoring 49 Spirituality and Culture 52

Summary of Key Points 54 Review and Discussion Questions 55 Exercises 55 Case 57

PART TWO UNDERSTANDING AND MANAGING INDIVIDUAL BEHAVIOR 61

Chapter 3 Individual Differences at Work 63 Why Individual Differences Matter 63 Individual Differences Influenc e Work Behavior 64

Diversity 65 Abilities and Skills 69 Attitudes 70 Personality 74 Emotions 79

Summary of Key Points 83 Review and Discussion Questions 83 Exercise 84 Case 86

Chapter 4 Perceptions and Attributions 89 The Perceptual Process 89 Perceptual Grouping 93 Perceptual Groupings Can Create Inaccuracies 95

Stereotyping 95 Selective and Divided Attention 96 Halo Effect 97 Similar-to-Me Errors 97

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viii Contents

Situational Factors 97 Needs and Desires 98

Attribution Theory 98 Impression Management 100

An Interpersonal Process 100 A Model and Impression Management in Practice 101

Summary of Key Points 103 Review and Discussion Questions 103 Exercises 104 Case 107

Chapter 5 Motivation 111 The Starting Point: Needs Motivate Employees 113 Content Approaches 115

Maslow’s Need Hierarchy 115 Alderfer’s ERG Theory 117 Herzberg’s Two-Factor Theory 118 McClelland’s Learned Needs Theory 122 A Synopsis of the Four Content Theories 123

Process Approaches 123 Expectancy Theory 124 Equity Theory 125 Change Procedures to Restore Equity 126 Research on Equity 127 Goal Setting 130 Goal-Setting Research 132

Motivation and the Psychological Contract 133 Effective Managers Motivate Their Employees 134 Summary of Key Points 135 Review and Discussion Questions 136 Exercise 137 Case 138

Chapter 6 Job Design and Performance 141 Job Design and Quality of Work Life 143 A General Model of Job Design 143 Job Performance Outcomes 144

Objective Outcomes 144 Behavior al Outcomes 144 Intrinsic and Extrinsic Outcomes 144 Job Satisfaction Outcomes 145

Job Design: Range, Depth, and Relationships 147 Range and Depth 147

Job Relationships 148 The Way People Perceive Their Jobs 149

Job Characteristics 150 Individual Differences 150 Social Setting Differences 150

Increasing Range in Jobs: Job Rotation and Job Enlargement 151

Job Rotation 151 Job Enlargement 151

Increasing Depth in Jobs: Job Enrichment 153 Self-Managed Teams 156 Alternative Work Arrangements 156

Total Quality Management and Job Design 160 Summary of Key Points 162 Review and Discussion Questions 163 Exercise 164 Case 166

Chapter 7 Evaluation and Rewards Influence Behavior 169 Evaluation of Performance 170

Purposes of Evaluation 170 Focus of Evaluation 172 Improving Evaluations 172

Performance Evaluation Feedback 173 Purpose of Evaluation Feedback 174 A Feedback Model 174 Multisource Feedback: A 360-Degree Approach 175

Reinforcement Theory 177 Reinforcement 177 Punishment 177 Extinction 178 Reinforcement Schedules 178

A Model of Individual Rewards 179 Intrinsic and Extrinsic Rewards 181 Rewards Interact 184 Administering Rewards 185

Rewards Affect Important Organizational Outcomes 187

Turnover and Absenteeism 187 Job Performance 188 Organizational Commitment 188

Innovative Reward Systems 188 Skill-Based Pay 189 Broadbanding 189 Concierge Services 191

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Contents ix

Team-Based Rewards 191 Part-Time Benefits 192 Gain-Sharing 193 Employee Stock Ownership Plans 194 Line of Sight: The Key Issue 194

Summary of Key Points 195 Review and Discussion Questions 197 Exercises 197 Case 201

Chapter 8 Managing Misbehavior 205 The Management of Misbehavior 205 The Emerging Study of Misbehavior 207

Antecedents 207 Mediators 207 Outcomes 209 Costs 209 Management Interventions 209

Selected Misbehaviors 210 Sexual Harassment 210 Aggression and Violence 212 Bullying 214 Incivility 215 Fraud 216 Substance Abuse at Work 218 Cyberslacking 219 Sabotage 220 Theft 221

Privacy 224 E-Mail Privacy 224 The Organizational Threshold 225 Testing Policy 225

Summary of Key Points 226 Review and Discussion Questions 227 Case 227

Chapter 9 Managing Individual Stress 231 What Is Stress? 232 Stress Model 234 Work Stressors: Individual, Group, and Organizational 236

Individual Stressors 236 Group, Organizational, and Nonwork Stressors 238 Cognitive Appraisal 240 Coping with Stress 241

Stress Outcomes 241 Individual Outcomes 242 Organizational Consequences 246

Stress Moderators 246 Personality 247 Type A Behavior Pattern 247 Social Support 248

Managing Stress: Individual and Organizational Approaches 249

Maximizing Person–Environment Fit 250 Organizational Stress Prevention and Management Programs 252

Summary of Key Points 258 Review and Discussion Questions 259 Exercise 259 Case 262

PART THREE GROUP BEHAVIOR AND INTERPERSONAL INFLUENCE 265

Chapter 10 Groups and Teams 267 The Nature of Groups 26 9 Types of Groups 270

Formal Groups 271 Informal Groups 271

Why People Form Groups 272 Stages of Group Development 273

Forming 273 Storming 274 Norming 274 Performing 274 Adjourning 275

Characteristics of Groups 275 Composition 275 Status Hierarchy 276 Roles 276 Norms 277 Leadership 279 Cohesiveness 279

Group Effectiveness 283 Teams 284

Types of Teams 284 Team Effectiveness 288

Summary of Key Points 291 Review and Discussion Questions 292

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x Contents

Exercises 294 Case 299

Chapter 11 Managing Conflict and Negotiations 303 A Contemporary Perspective on Intergroup Conflict 304

Functional Conflict 305 Dysfunctional Conflict 305 Conflict and Organizational Performance 306

What Causes Intergroup Conflict? 306 Work Interdependence 306 Goal Differences 308 Perceptual Differences 308

The Consequences of Dysfunctional Intergroup Conflict 309

Changes within Groups 309 Changes between Groups 310

Managing Intergroup Conflict through Resolution 311

Dominating 312 Accommodating 312 Problem Solving 314 Avoiding 314 Compromising 314

Stimulating Constructive Intergroup Conflict 316 Bringing Outside Individuals into the Group 317 Altering the Organization’s Structure 317 Stimulating Competition 318 Using Programmed Conflict 318

Negotiations 318 Win–Lose Negotiating 319 Win–Win Negotiating 320

Negotiation Tactics 321 Increasing Negotiation Effectiveness 321

Using Third-Party Negotiations 322 Team Building 323 Negotiating Globally 324 Improving Negotiations 324

Summary of Key Points 326 Review and Discussion Questions 327 Exercises 329 Case 332

Chapter 12 Power and Politics 335 The Concept of Power 335 Where Does Power Come From? 337

Interpersonal Power 337 Structural Power 339

Empowerment 342 Subunit or Interdepartmental Power 344

Coping with Uncertainty 345 Centrality 346 Substitutability 346

Obedience and the Illusion of Power 347 Political Strategies and Tactics 349

Research on Politics 349 Game Playing 350 Political Influence Tactics 350 Impression Management 352

Ethics, Power, and Politics 353 Using Power to Manage Effectivel

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