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Eleventh Edit ion

Organizational Behavior & Management

Robert Konopaske John M. Ivancevich

Michael T. Matteson

Eleventh Edition

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

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

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

Organizational Behavior and Management

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

ORGANIZATIONAL BEHAVIOR AND MANAGEMENT, ELEVENTH EDITION

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Names: Konopaske, Robert, author. | Ivancevich, John M., author. | Matteson, Michael T., author. Title: Organizational behavior and management/Robert Konopaske, Associate Professor of Management, McCoy College of Business Administration, Texas State University, 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, Michael T. Matteson, Professor Emeritus Organizational Behavior and Management, C. T. Bauer College of Business, University of Houston. Description: Eleventh Edition. | Dubuque, IA : McGraw-Hill Education, 2016. | Revised edition of Organizational behavior and management. Identifiers: LCCN 2016041475 | ISBN 9781259894534 (alk. paper) | ISBN 1259894533 (alk. paper) Subjects: LCSH: Organizational behavior. Classification: LCC HD58.7 .I89 2016 | DDC 658.4--dc23 LC record available at https://lccn.loc.gov/2016041475

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About the Authors Robert Konopaske is Associate Professor of Management at the McCoy College of Business Administration, Texas State University. He earned his Doctoral Degree in management 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 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: M: Management (4th and 5th editions), Manage- ment: Leading & Collaborating in a Competitive World (12th edition), Organizations: Behavior, Structure, Processes (11th, 12th, 13th, and 14th editions), Organizational Behav- ior and Management (7th, 8th, 9th, 10th, and 11th editions), Human Resource Management (12th edition) and Global Management and Organizational Behavior. He has published numerous academic articles in Journal of Managerial Psychology, Journal of Applied Psychology, Academy of Management Executive, Journal of Management Education, Journal of Business Research, Work and Stress, Human Resource Management Review, Management International Review, Business Horizons, 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.

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 criti- cally about and apply the concepts and theories of organizational 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 Research, 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 period, Jack reached well over a million students by authoring or co-authoring 88 books about various aspects of manage- ment and organizational behavior. In 1987, the first edition of Organizational Behavior and

iv About the Authors

Management (with Michael T. Matteson) was published. Preceding this textbook were several others like the award-winning and popular textbook Organizations: Behavior, Structure, Pro- cesses (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, Organizations (11th edition) received the McGuffey Longevity Award from the Text and Academic Authors Association. This award rec- ognizes textbooks and learning materials whose excellence has been demonstrated over time. A sample of Jack’s other textbooks include: Human Resource Management, Global Management and Organizational Behavior (co-authored with Robert Konopaske), Management and Organi- zational Behavior Classics (co-authored with Michael T. Matteson), Fundamentals of Manage- ment: Functions, Behavior, Models (co-authored with James L. Gibson and James H. Donnelly), and Management: Quality and Competitiveness (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 jour- nals as Academy of Management Journal, Academy of Management Review, Administra- tive Science Quarterly, Journal of Applied Psychology, and Harvard Business Review. His research was highly influential and explored a range of management and organiza- tional behavior topics, including job stress, white-collar crime, diversity management, global assignments, job loss, absenteeism, job satisfaction, goal setting, job performance, training method effectiveness, and organizational climate. The diversity 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 33 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 knowl- edge of organizational behavior and management to the several leadership positions 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 Organiza- tional Behavior 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 Adminis- tration. 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 prin- cipled leadership, Jack left a lasting and meaningful imprint on the entire University of Houston community, including internal constituents like fellow administrators, Deans, pro- gram directors, faculty, staff, and students, as well as external stakeholders like legislators, donors, alumni, and area company executives. His accomplishments were even more extraordinary, 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.

About the Authors v

Jack would often invite younger faculty members to collaborate with him on research proj- ects. 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 pro- cess of conducting original research for their theses or dissertations. Jack was always will- ing 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 excel- lence in return. Many of these former 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 capture 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 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 observing 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 committed 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 grandchildren 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

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 industries. He is the co-author or co-editor of a number of textbooks and trade books including Stress and Work: A Managerial Perspective, Management and Organizational Behavior Classics, and Controlling Work Stress.

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Brief Contents Preface xiii

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

Organizational Behavior 3 2 International and Organizational

Culture 31

PART TWO Understanding and Managing Individual Behavior 55 3 Individual Differences at Work 57 4 Perceptions and Attributions 81 5 Motivation 101 6 Job Design and Performance 131 7 Evaluation and Rewards Influence

Behavior 157 8 Managing Employee Behavior 191 9 Managing Individual Stress 213

PART THREE Group Behavior and Interpersonal Influence 245 10 Groups and Teams 247 11 Managing Conflict and Negotiations 279 12 Power and Politics 307

PART FOUR Organizational Processes 335 13 Communicating Effectively 337 14 Decision Making 371 15 Leadership 401

PART FIVE Organizational Design, Change, and Innovation 437 16 Organizational Structure and Design 439 17 Managing Organizational Change 471

APPENDIX Quantitative and Qualitative Research Techniques for Studying Organizational Behavior and Management Practice 503

GLOSSARY 513

ENDNOTES 525

INDEXES 575

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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 9 The Hawthorne Studies 9

Systems Theory and Organizational Effectiveness 10 Quality 12 Productivity 12 Efficiency 13 Satisfaction 13 Adaptiveness 13 Development 13

Environmental Forces Reshaping Management Practice 14 Framing the Study of Organizational Behavior 18

The Organization’s Environment 18 Understanding and Managing Individual Behavior 18 Group Behavior and Interpersonal Influence 21 Organizational Processes 23 Organizational Design, Change, and Innovation 24

Summary of Key Points 25 Review and Discussion Questions 26 Exercise 26 Case 29

Chapter 2 International and Organizational Culture 31 National Culture and Values Influence Workplace Behavior 32

Organizational Culture Matters 34 Organizational Culture Defined 35 Organizational Culture and Its Effects 35 Creating Organizational Culture 37

Influencing Culture Change 40 Socialization Sustains the Culture 41

Anticipatory Socialization 42 Accommodation 42 Role Management 43

Characteristics of Effective Socialization 43 Mentoring 43 Spirituality and Culture 46

Summary of Key Points 49 Review and Discussion Questions 49 Exercises 50 Case 52

PART TWO UNDERSTANDING AND MANAGING INDIVIDUAL BEHAVIOR 55

Chapter 3 Individual Differences at Work 57 Why Individual Differences Matter 57 Individual Differences Influence Work Behavior 58

Diversity 59 Abilities and Skills 62 Attitudes 64 Personality 67 Emotions 72

Summary of Key Points 76 Review and Discussion Questions 76 Exercise 77 Case 79

Chapter 4 Perceptions and Attributions 81 The Perceptual Process 81 Perceptual Grouping 85 Perceptual Groupings Can Create Inaccuracies 87

Stereotyping 87 Selective and Divided Attention 88

viii Contents

Halo Effect 88 Similar-to-Me Errors 89 Situational Factors 89 Needs and Desires 89

Attribution Theory 90 Impression Management 92

An Interpersonal Process 92 A Model and Impression Management in Practice 93

Summary of Key Points 95 Review and Discussion Questions 95 Exercises 96 Case 99

Chapter 5 Motivation 101 The Starting Point: Needs Motivate Employees 103 Content Approaches 105

Maslow’s Needs Hierarchy 105 Alderfer’s ERG Theory 107 Herzberg’s Two-Factor Theory 108 McClelland’s Learned Needs Theory 111 A Synopsis of the Four Content Theories 112

Process Approaches 113 Expectancy Theory 113 Equity Theory 115 Change Procedures to Restore Equity 115 Research on Equity 116 Goal Setting 119 Goal-Setting Research 121

Motivation and the Psychological Contract 122 Effective Managers Motivate Their Employees 123 Summary of Key Points 124 Review and Discussion Questions 125 Exercise 126 Case 127

Chapter 6 Job Design and Performance 131 Job Design and Quality of Work Life 132 A General Model of Job Design 133 Job Performance Outcomes 134

Objective Outcomes 134 Behavioral Outcomes 134 Intrinsic and Extrinsic Outcomes 135 Job Satisfaction Outcomes 136

Job Design: Range, Depth, and Relationships 137 Range and Depth 137 Job Relationships 138

The Way People Perceive Their Jobs 139 Job Characteristics 140 Individual Differences 140 Social Setting Differences 140

Increasing Range in Jobs: Job Rotation and Job Enlargement 141

Job Rotation 141 Job Enlargement 141

Increasing Depth in Jobs: Job Enrichment 142 Self-Managed Teams 145 Alternative Work Arrangements 146

Total Quality Management and Job Design 149 Summary of Key Points 151 Review and Discussion Questions 152 Exercise 153 Case 155

Chapter 7 Evaluation and Rewards Influence Behavior 157 Evaluation of Performance 158

Purposes of Evaluation 158 Focus of Evaluation 160 Improving Evaluations 160

Performance Evaluation Feedback 161 Purpose of Evaluation Feedback 162 A Feedback Model 162 Multisource Feedback: A 360-Degree Approach 163

Reinforcement Theory 164 Reinforcement 165 Punishment 165 Extinction 165 Reinforcement Schedules 165

A Model of Individual Rewards 167 Intrinsic and Extrinsic Rewards 168 Rewards Interact 171 Administering Rewards 172

Rewards Affect Important Organizational Outcomes 174

Turnover and Absenteeism 174 Job Performance 175 Organizational Commitment 175

Innovative Reward Systems 176 Skill-Based Pay 176 Broadbanding 176 Concierge Services 178 Team-Based Rewards 178

Contents ix

Part-Time Benefits 179 Gain-Sharing 180 Employee Stock Ownership Plans 180 Line of Sight: The Key Issue 181

Summary of Key Points 182 Review and Discussion Questions 184 Exercises 184 Case 188

Chapter 8 Managing Employee Behavior 191 The Management of Employee Behavior 191 The Emerging Study of Misbehavior 193

Antecedents 193 Mediators 193 Outcomes 195 Costs 195 Management Interventions 195

Selected Misbehaviors 196 Sexual Harassment 196 Aggression and Violence 198 Bullying 199 Incivility 200 Fraud 201 Substance Abuse at Work 203 Cyberslacking 204 Sabotage 205 Theft 206

Privacy 207 E-Mail Privacy 208 The Organizational Threshold 208 Testing Policy 209

Summary of Key Points 209 Review and Discussion Questions 210 Case 210

Chapter 9 Managing Individual Stress 213 What Is Stress? 214 Stress Model 216 Work Stressors: Individual, Group, and Organizational 218

Individual Stressors 218 Group, Organizational, and Nonwork Stressors 220 Cognitive Appraisal 221 Coping with Stress 222

Stress Outcomes 223 Individual Outcomes 223 Organizational Consequences 227

Stress Moderators 228 Personality 228 Type A Behavior Pattern 229 Social Support 230

Managing Stress: Individual and Organizational Approaches 230

Maximizing Person–Environment Fit 232 Organizational Stress Prevention and Management Programs 233

Summary of Key Points 238 Review and Discussion Questions 239 Exercise 240 Case 243

PART THREE GROUP BEHAVIOR AND INTERPERSONAL INFLUENCE 245

Chapter 10 Groups and Teams 247 The Nature of Groups 249 Types of Groups 250

Formal Groups 251 Informal Groups 251

Why People Form Groups 252 Stages of Group Development 253

Forming 253 Storming 253 Norming 254 Performing 254 Adjourning 254

Characteristics of Groups 255 Composition 255 Status Hierarchy 255 Roles 256 Norms 257 Leadership 258 Cohesiveness 259

Group Effectiveness 262 Teams 263

Types of Teams 263 Team Effectiveness 267

Summary of Key Points 269 Review and Discussion Questions 270 Exercises 272 Case 277

x Contents

Chapter 11 Managing Conflict and Negotiations 279 A Contemporary Perspective on Intergroup Conflict 280

Functional Conflict 281 Dysfunctional Conflict 281 Conflict and Organizational Performance 281

What Causes Intergroup Conflict? 282 Work Interdependence 282 Goal Differences 284 Perceptual Differences 284

The Consequences of Dysfunctional Intergroup Conflict 285

Changes within Groups 285 Changes between Groups 286