The white water rapids metaphor envisions an organization as ________

Discussion Organizational Behavior

Which of the conceptually different types of job design is most likely to be used in the future? Explain your rationale.

The discussion forum must be a minimum of 100 words with an initial post and responses to at least two classmates’ posts.

Technique: Select the "Start a new thread" link found in the starter discussion thread and type your post into the Message box that is displayed. Be sure to add a subject for the discussion and follow all special instructions. Read through all the initial posts and select "Reply to thread" when you find the one(s) you want to discuss further.

key concepts, skills & best practices

Angelo Kinicki Mel Fugate

Kinicki

Fugate

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

www.mhhe.com

CURRENT ENGAGING SKILLS PRACTICE

Kinicki/Fugate, Organizational Behavior: Key Concepts, Skills and Best Practices 5e

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management

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fifth edition

key concepts, skills & best practices

organizational behavior

Angelo Kinicki Arizona State University

Mel Fugate Southern

Methodist University

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ORGANIZATIONAL BEHAVIOR: KEY CONCEPTS, SKILLS AND BEST PRACTICES

Published by McGraw-Hill/Irwin, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY, 10020. Copyright © 2012, 2009, 2008, 2006, 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Printed in the United States of America. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning.

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

This book is printed on acid-free paper.

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

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

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

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

www.mhhe.com

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

—AK

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

—MF

DEDICATION

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vi

ABOUT THE AUTHORS

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

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

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

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

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

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

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

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

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About the Authors vii

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Preface ix

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

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

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

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

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

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

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

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

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

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

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x Preface

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Chapter Ethics Diversity International OB Internet/Social Media Teams/Teamwork

1 18–25, 28–29 5, 8–9, 13, 17 15–16 14–18, 28–29 4, 15–16

2 33–35, 40–44,55 50, 51 39 44, 46,52 33, 35–38, 43–51

3 64, 80 56–57, 59–66 56–68, 71–73, 76, 80 61

4 82, 83, 89, 94, 95, 99, 109, 111–112

82, 83, 87, 89, 90, 91, 96–110

82, 92 91, 106

5 122, 133–134, 143 116–117, 122, 131 120, 124 114–115,

6 149, 167, 170 146, 152–154, 157, 159

151 146–148, 152, 154, 158, 160, 161

7 172, 173, 178, 179, 194 178 177, 178, 178, 182, 189

8 205–206, 212, 217– 218, 220–221

202 208 203, 204 203

9 231, 248–249 226, 230, 231–232, 242–243, 246

233, 234, 242 227, 242–244 224–225, 226–227, 231, 234–238, 239–241, 242–243, 243–247

10 250–253, 261, 262, 270–273, 282

265 269, 279, 280 250, 251, 263, 270, 273–279

11 290, 300–302, 306 284–285, 286 291, 294–295, 300 286 286, 289, 292–294

12 332–333, 336 314–315, 318, 319, 320–321, 324–326, 328

316, 318, 321, 327, 328, 331

308–309, 311, 325, 327–334, 336

331–332

13 338–339, 344–345, 352–353, 354, 356, 360

342–345 346–347, 350, 353, 356 350, 360

14 362–363,366– 367,369,381–382,392

382,384 377,378,386 382 362–363, 369, 375, 380, 386–387, 389

15 416 399–400, 404, 406–407, 409–411, 413–414

404–406 394–395, 402, 406

16 423,444 418–420, 422–423, 432, 434–435

421–422, 437 425, 431, 437, 440, 443

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xii Preface

McGraw-Hill Connect Management

Less Managing. More Teaching. Greater Learning. McGraw-Hill Connect Management is an online assignment and assess- ment solution that connects students with the tools and resources they’ll need to achieve success.

McGraw-Hill Connect Manage- ment helps prepare students for their future by enabling faster learning, more efficient studying, and higher retention of knowledge.

McGraw-Hill Connect Management Features Connect Management offers a num- ber of powerful tools and features to make managing assignments easier, so faculty can spend more time

teaching. With Connect Manage- ment students can engage with their coursework anytime and anywhere, making the learning process more accessible and efficient. Connect Management offers you the features described below.

Online interactives Online Interactives are engaging tools that teach students to apply key concepts in practice. These Interac- tives provide them with immersive, experiential learning opportunities. Students will engage in a variety of interactive scenarios to deepen criti- cal knowledge on key course topics. They receive immediate feedback at intermediate steps throughout each exercise, as well as comprehensive feedback at the end of the assign- ment. All Interactives are auto- matically scored and entered into the instructor gradebook.

Student progress tracking Connect Management keeps instruc- tors informed about how each stu- dent, section, and class is performing, allowing for more productive use of lecture and office hours. The progress-tracking function enables you to:

• View scored work immediately and track individual or group performance with assignment and grade reports.

• Access an instant view of student or class performance relative to learning objectives.

• Collect data and generate reports required by many accreditation organizations, such as AACSB.

Smart grading When it comes to studying, time is precious. Connect Management helps students learn more eff i- ciently by providing feedback and practice material when they need it, where they need it. When it comes to teaching, your time also is pre- cious. The grading function enables you to:

• Have assignments scored automat- ically, giving students immediate feedback on their work and side- by-side comparisons with correct answers.

• Access and review each response; manually change grades or leave comments for students to review.

• Reinforce classroom concepts with practice tests and instant quizzes.

TM

FPO

legal/ethical challenge Credit-Card Issuers Have Cultures That Focus on Growth by Targeting Financially Strapped People 55

The troubles sound familiar. Borrowers falling behind on their payments. Defaults rising. Huge swaths of loans sour- ing. Investors getting burned. But forget the now-familiar tales of mortgages gone bad. The next horror for beaten- down financial firms is the $950 billion worth of outstand- ing credit-card debt—much of it toxic. . . . The consumer debt bomb is already beginning to spray shrapnel through- out the financial markets, further weakening the U.S. econ- omy. “The next meltdown will be in credit cards,” says Gregory Larkin, senior analyst at research firm Innovest Strategic Value Advisors. . . .

But some banks and credit-card companies may be exacerbating their problems. To boost profits and get ahead of coming regulation, they’re hiking interest rates. But that’s making it harder for consumers to keep up. . . . Sure

issuer bought by Bank of America in 2005, says her job was to develop a rapport with credit-card customers and advise them to use more of their available credit. Colleagues would often gather around her chair when she was on the phone with a customer and chant: “Sell, sell.” “It was like Boiler Room, ” says Colombo, referring to the 2000 movie about unscrupulous stock brokers. “I knew that they would probably be in debt for the rest of their lives.” Unless, of course, they default.

Assume that you are member of Congress. What would you do in light of the facts in this case?

1. Create legislation that does not allow credit-card issu- ers to raise interest rates for those who cannot pay their bills.

C l i l i h k i i f l lik

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Emphasis on Ethics in the Fifth Edition We have continued (and updated) two features from the fourth edition—we inserted the learning module on ethics into Chapter 1 to provide upfront coverage of this important contextual issue. We also include 11 new legal/ethical challenge cases (69%) at the end of every chapter— to set a proper moral tone for managing people at work. The 16 legal/ethical challenge cases raise contemporary ethical issues, ask tough questions, and have corresponding interpretations on our Web site at www.mhhe.com/kinickiob5e .

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Preface xiii

Simple assignment management With Connect Management creating assignments is easier than ever, so you can spend more time teaching and less time managing. The assignment management function enables you to:

• Create and deliver assignments eas- ily with selectable end-of-chapter questions and test bank items.

• Streamline lesson planning, student progress reporting, and assignment grading to make class- room management more efficient than ever.

• Go paperless with the eBook and online submission and grading of student assignments.

Instructor library The Connect Management Instructor Library is your repository for addi- tional resources to improve student engagement in and out of class. You can select and use any asset that enhances your lecture. The Con- nect Management Instructor Library includes:

• Instructor Manual • PowerPoint files • TestBank • Management Asset Gallery

• eBook

Student study center The Connect Management Student Study Center is the place for students to access additional resources. The Student Study Center

• Offers students quick access to lectures, practice materials, eBooks, and more.

• Provides instant practice material and study questions, easily acces- sible on the go.

• Gives students access to the Per- sonalized Learning Plan described below.

Lecture capture via Tegrity Campus Increase the attention paid to lecture discussion by decreasing the attention paid to note taking. For an additional charge Lecture Capture offers new ways for students to focus on the in-class discussion, knowing they can revisit important topics later. See below for further information

McGraw-Hill Connect Plus Management McGraw-Hill reinvents the textbook learning experience for the modern student with Connect Plus Manage- ment. A seamless integration of an eBook and Connect Management, Connect Plus Management provides all of the Connect Management fea- tures plus the following:

• An integrated eBook, allowing for anytime, anywhere access to the textbook.

• Dynamic links between the prob- lems or questions you assign to your students and the location in the eBook where that problem or question is covered.

• A powerful search function to pin- point and connect key concepts in a snap.

In short, Connect Management offers you and your students power- ful tools and features that optimize your time and energies, enabling you to focus on course content, teach- ing, and student learning. Connect Management also offers a wealth of content resources for both instructors and students. This state-of-the-art, thoroughly tested system supports you in preparing students for the world that awaits.

For more information about Con- nect, go to www.mcgrawhillconnect. com, or contact your local McGraw- Hill sales representative.

Tegrity Campus: Lectures 24/7

Tegrity Campus is a service that makes class time available 24/7 by automatically capturing every lecture in a searchable format for students to review when they study and complete assignments. With a simple one-click start-and-stop process, you capture all computer screens and corresponding audio. Students can replay any part of any class with easy-to-use browser-based viewing on a PC or Mac.

Educators know that the more students can see, hear, and experience class resources, the better they learn. In fact, studies prove it. With Tegrity Campus, students quickly recall key moments by using Tegrity Campus’s unique search feature. This search helps students efficiently find what they need, when they need it, across an entire semester of class record- ings. Help turn all your students’ study time into learning moments immediately supported by your lecture.

Lecture Capture enables you to

• Record and distribute your lecture with a click of button.

• Record and index PowerPoint® presentations and anything shown on your computer so it is easily searchable, frame by frame.

• Offer access to lectures anytime and anywhere by computer, iPod, or mobile device.

• Increase intent listening and class participation by easing students’ concerns about note taking. Lec- ture Capture will make it more likely you will see students’ faces, not the tops of their heads.

To learn more about Tegrity watch a 2-minute Flash demo at http://tegritycampus.mhhe.com.

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xiv Preface

Assurance of Learning Ready Many educational institutions today are focused on the notion of assurance of learning, an important element of some accreditation standards. Organizational Behavior: Key Concepts, Skills & Best Practices is designed specifically to support your assurance of learning initiatives with a simple, yet powerful solution.

Each test bank question for Orga- nizational Behavior: Key Concepts, Skills & Best Practices maps to a specific chapter learning outcome/ objective listed in the text. You can use our test bank software, EZ Test and EZ Test Online, or in Connect Manage- ment to easily query for learning out- comes/objectives that directly relate to the learning objectives for your course. You can then use the reporting features of EZ Test to aggregate student results in similar fashion, making the collec- tion and presentation of assurance of learning data simple and easy.

AACSB Statement The McGraw-Hill Companies is a proud corporate member of AACSB International. Understanding the importance and value of AACSB accreditation, Organizational Behav- ior: Key Concepts, Skills & Best Practices, 5e recognizes the curricu- lum guidelines detailed in the AACSB standards for business accreditation by connecting selected questions in the text and/or the test bank to the six general knowledge and skill guide- lines in the AACSB standards.

The statements contained in Orga- nizational Behavior: Key Concepts, Skills & Best Practices, 5e are pro- vided only as a guide for the users of this textbook. The AACSB

leaves content coverage and assessment within the purview of individual schools, the mission of the school, and the faculty. While Orga- nizational Behavior: Key Concepts, Skills & Best Practices, 5e and the teaching package make no claim of any specific AACSB qualification or evaluation, we have within Organiza- tional Behavior: Key Concepts, Skills & Best Practices, 5e labeled selected questions according to the six general knowledge and skills areas.

McGraw-Hill Customer Care Contact Information At McGraw-Hill, we understand that getting the most from new technology can be challenging. That’s why our services don’t stop after you purchase our products. You can e-mail our product specialists 24 hours a day to get product training online. Or you can search our knowledge bank of fre- quently asked questions on our support website. For customer support, call 800-331-5094, e-mail hmsupport@ mcgraw-hill.com, or visit www.mhhe .com/support. One of our technical support analysts will be able to assist you in a timely fashion.

McGraw-Hill Higher Education and Blackboard have teamed up. What does this mean for you? 1. Your life, simplified. Now

you and your students can access

McGraw-Hill’s Connect and Create right from within your Blackboard course—all with one single sign-on. Say goodbye to the days of logging in to multiple applications.

2. Deep integration of content and tools. Not only do you get single sign-on with Connect and Create, you also get deep integration of McGraw-Hill con- tent and content engines right in Blackboard. Whether you’re choosing a book for your course or building Connect assignments, all the tools you need are right where you want them—inside of Blackboard.

3. Seamless gradebooks. Are you tired of keeping multiple grade- books and manually synchroniz- ing grades into Blackboard? We thought so. When a student completes an integrated Connect assignment, the grade for that assignment automatically (and instantly) feeds your Blackboard grade center.

4. A solution for everyone. Whether your institution is already using Blackboard or you just want to try Blackboard on your own, we have a solution for you. McGraw-Hill and Blackboard can now offer you easy access to industry leading technology and content, whether your campus hosts it, or we do. Be sure to ask your local McGraw-Hill representative for details.

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Really?! I Decide How Many Hours I Work? This title suggests employees have a choice. But most employers around the world tell employees when and how much they will work rather than ask. The Netherlands, however, provides an interesting alterna- tive. Not only do 3 out of 4 Dutch women work part time, but many men work only four days a week. For example, Remco Vermaire is 37 and is the youngest partner at his law firm. His clients expect him to be available any minute of the day or night— but only the four days a week that he works. When he is “off the clock” they do not expect him to be available. This is in part because many of his clients work similarly flex- ible schedules. Moreover, 14 of the 33 attorneys at his firm work part time. This evidence suggests that the Dutch have particular norms related to work schedules. And as you learned in Chapter 2 norms are mani- festations of a culture’s underlying values.

The Dutch have managed to effectively blend traditional and modern values. While laws kept women out of the workplace for much of the 1900s, legislation in 2000 allowed all employees (men and women) to determine the number of hours they work. Employers can object if they have a compelling reason, but most challenges are not granted. Today most female-dominated jobs (e.g., nursing and education) are staffed via job sharing between two or more part-time employees. Of course, reduced schedules result in reduced income. The Dutch do not provide full-time pay for part-time work. Nevertheless, many working age peo- ple with and without kids would gladly trade money for more free time. A third of Dutch men either work part-time or squeezes a full-time job into four days. More generally, 25% of workers in the Netherlands have reduced hours compared to only ten percent across the rest of Europe and the U.S.

While flexible schedules typically have been used to accommodate female employees, both in the Netherlands and elsewhere, Dutch companies now widely use flextime to attract and retain both male and

SKILLS & BEST PRACTICES SKSS

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featuresActive Learning Key Concepts, Skills & Best Practices We have a love and passion for teaching organizational behavior in the classroom and via textbooks because it deals with the intriguing realities of working in modern organizations. Puzzling questions, insight, and surprises hide around every corner. Seeking use- ful insights about how and why people behave as they do in the workplace is a provocative, interesting and oftentimes fun activity. After all, to know more about organizational behavior is to know more about ourselves and life in general. We have designed this text to facilitate active learning by relying on the following tools throughout every chapter of the text:

Engage Students with Current, Relevant Cases Brief real-world cases open every chapter with timely, rel- evant situations providing that needed hook to get students engaged into the chapter materials. The text’s Instructor’s Manual also features interpretations for each case.

Skills and Practice This text presents clear application of the theory presented throughout its carefully crafted narrative. Additionally, the boxed feature “Skills & Best Practices” delivers additional readings and practical application items that are designed to sharpen users’ skills by either rec- ommending how to apply a concept, theory, or model, or by giving an exemplary corporate application.

“Students relate to this textbook… they thank me for choosing this

book; they say it’s a book they will hold onto for future use!”

—Kathleen M Foldvary, Harper College

“Excellent. These cases really seem to set the tone with relevant

and interesting situations.” —Tom Myers, Champlain College

“Yes, it exceeds my expectations in this regard. Excellent job of linking concepts to practical

application (a clear distinguishing factor of this text).”

—Karen S. Markel, Ph.D. SPHR

Oakland University

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Personalize and Expand Key Concepts Sixteen hands-on self-assessment exercises encourage active and thoughtful interaction rather than passive reading, and personalize the study experience for students while they evalu- ate their own skills, abilities, and interests in a variety of areas.

Effective Illustrations Over 90% of the 32 instructors who reviewed this text rated the tables and graphs as above average to excellent in terms of their effec- tiveness to convey key concepts.

HANDS-ON EXERCISE

Have You Been Adequately Socialized? INSTRUCTIONS: Complete the following survey items by considering either your current job or one you held in the past. If you have never worked, identify a friend who is working and ask that individual to complete the questionnaire for his or her organization. Read each item and circle your response by using the rating scale shown below. Compute your total score by adding up your responses and compare it to the scoring norms.

H

Strongly Disagree Disagree Neutral Agree

Strongly Agree

1. I have been through a set of training experiences that are specifically designed to give newcomers a thorough knowledge of job-related skills. 1 2 3 4 5

2. This organization puts all newcomers through the same set of learning experiences. 1 2 3 4 5

3. I did not perform any of my normal job responsibilities until I was thoroughly familiar with departmental procedures and work methods. 1 2 3 4 5

4. There is a clear pattern in the way one role leads to another, or one job assignment leads to another, in this organization. 1 2 3 4 5

5. I can predict my future career path in this organization by observing other people’s experiences. 1 2 3 4 5

6. Almost all of my colleagues have been supportive of me personally. 1 2 3 4 5

7. My colleagues have gone out of their way to help me adjust to this organization. 1 2 3 4 5

8 I i d h id f

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“Love these! They are one of the best elements of the K&K text. Students

like them as well, and they like discussing their results.”

—Mary Ellen Segraves, National-Louis University

“Excellent use of tables and graphs. The graphs tend to be multi-dimensional

(shadowing) and not boring, but very clear in the conveyance of important data. The cartoons were very funny

and appropriate…” —Tom Myers, Champlain College

“Wow! These are very well done; make for excellent slides and overall chapter discussions.”

—Kathleen M Foldvary, Harper College

TABLE 1–2

Types of Human Capital Examples and Purposes 1. Training Software certification to gain

knowledge and skills to improve performance in current job

2. Work-based development opportunities

Job rotation (Chapter 6), shadowing, and cross-functional project teams (Chapter 9) to build your knowledge and your relationships

3. Learning activities outside of work Fluency gained in a second language to increase opportunities within and

Ways of Building Your Human and Social Capital

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Types of Human Capital Examples and Purposes 1. Training Software certification to gain

knowledge and skills to improve performance in current job

2. Work-based development opportunities

Job rotation (Chapter 6), shadowing, and cross-functional project teams (Chapter 9) to build your knowledge and your relationships

3. Learning activities outside of work Fluency gained in a second language to increase opportunities within and outside of current employment

4. Career planning Opportunities identified inside or outside of your current place of employment and assess your strengths and weaknesses

Types of Social Capital Examples and Purposes 1. Internal Mentoring relationship to provide

guidance and opportunities (see Chapter 2) Membership in company softball team to build relationships outside of your work area

2. External Conference attendance to meet people at other companies and learn of other job opportunities Join local, industry specific organizations to identify new customer (business development)

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FIGURE!4–3 The Four Layers of Diversity

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Functional level/ classi!cation

Work content/ !eld

Management status

Personal habitsParental

status

Recreational habits

Union af!liation

GenderRace

Appearance

Division/ department/

unit/ group

Work experience

Sexual orientationEthnicity

Religion

Work location

Seniority

Physical ability

Educational background

Income Marital status

Geographic location

AgeI nte

rnal dimensions*

Personality

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Imaginative Writing Style for Better Readability

Up-to-Date Real-World Examples Nothing brings material to life better than rich in-text examples featuring real companies, people, and situations. This text delivers the most current and pertinent examples of any text on the market today.

Contemporary Ethical Issues Legal/Ethical Challenges at the end of every chapter raise contemporary issues, ask tough questions, and have corresponding interpretations in the Instructor’s Manual.

“Very readable. Upbeat tone. A somewhat ‘interactive style’ (use of in-text questions to the reader).”

—Mary Ellen Segraves, National-Louis University

“Among the most readable texts on the market.” —Joseph C. Rode, Miami (OH) University

“I think that the readability of this book is excellent. Some of

the examples are very rich, which gives the theory more

grounding in reality.” —Daniel Morrell,

Middle Tennessee State University

“These were very good. Brief yet meaty.” —Daniel Morrell, Middle Tennessee State University

“Loved all of the situations in the chapters I reviewed.”

—Janice S. Gates, Western Illinois University

“Thoughtfully engaged students in a more comprehensive

dialogue of the issues than my text currently does surrounding

ethical dilemmas.” —Karen S. Markel,

Ph.D. SPHR Oakland University

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Computerized Test Bank We’ve aligned our test bank with new AACSB guidelines, tagging each question according to its knowledge and skills areas. Categories include Communication, Ethics, Analytic, Technology, Diversity, and Reflective Thinking. Previous designations aligning questions with learning objectives, boxes, and features still exist as well, with over 1,200 questions from which to choose.

Instructor’s Resource Guide The Instructor’s Manual is a creative guide to understanding organizational behavior. It has been completely updated in order to save instructors time and support them in delivering the most effective course for their students. Each chapter includes a chapter summary, lec- ture outline, solution to the opening case, video resources, and much more. Each element will assist the instructor and students in maximizing the ideas, issues, concepts, and impor- tant organizational behavior approaches included in each chapter. We’d like to thank Mindy West of Arizona State University for helping us update our Instructor’s Guide.

supplementsInstructor & Student Organizational Behavior 5e gives you all the support material you need for an enriched classroom experience.

PowerPoint A newly developed PowerPoint presentation created by Brad Cox of Midlands Tech allows for new functionality and variety in the classroom. With the inclusion of video usage suggestions and links to additional information, instructors have the availability to tailor their presentations to their class needs.

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All of the following can be accessed within the Management Asset Gallery:

McGraw-Hill’s Expanded Management Asset Gallery McGraw-Hill/Irwin Management is excited to now provide a one-stop shop for our wealth of assets, making it quick and easy for instructors to locate specific materials to enhance their courses.

Manager’s Hot Seat This interactive, video-based application puts students in the manager’s hot seat, builds critical thinking and decision-making skills, and allows students to apply concepts to real manage- rial challenges. Students watch as 15 real managers apply their years of experience when confronting unscripted issues such as bullying in the workplace, cyber loafing, globalization, inter- generational work conflicts, workplace violence, and leadership versus management.

Self-Assessment Gallery Unique among publisher- provided self-assessments, our 23 self-assessments give stu- dents background information to ensure that they understand the purpose of the assessment. Students test their values,

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beliefs, skills, and interests in a wide variety of areas, allowing them to personally apply chapter content to their own lives and careers.

Every self-assessment is supported with PowerPoints and an instructor manual in the Man- agement Asset Gallery, making it easy for the instructor to create an engaging classroom dis- cussion surrounding the assessments.

Test Your Knowledge To help reinforce students’ understanding of key management concepts, Test Your Knowledge activities give students a review of the conceptual materials followed by application-based questions to work through. Students can choose practice mode, which gives them detailed feedback after each question, or test mode, which provides feedback after the entire test has been completed. Every Test Your Knowledge activity is supported by instructor notes in the Management Asset Gallery to make it easy for the instructor to create engaging classroom discussions surrounding the materials that students have completed.

Management History Timeline This Web application allows instructors to present and students to learn the history of management in an engaging and interactive way. Management history is presented along an intuitive timeline that can be traveled through sequentially or by selected decade. With the click of a mouse, students learn the important dates, see the people who influenced the field, and understand the general management theories that have molded and shaped management as we know it today.