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Organizational behavior (15e) stephen p robbins & timothy a judge (pdf) [qwerty][1]

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  • 1. Organizational Behavior
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  • 3. Organizational Behavior EDITION 15 Stephen P. Robbins —San Diego State University Timothy A. Judge —University of Notre Dame i3iEi35Bj! Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo
  • 4. Editorial Director: Sally Yagan Director of Editorial Services: Ashley Santora Acquisitions Editor: Brian Mickelson Editorial Project Manager: Sarah Holle Editorial Assistant: Ashlee Bradbury VP Director of Marketing: Patrice Lumumba Jones Senior Marketing Manager: Nikki Ayana Jones Senior Managing Editor: Judy Leale Production Project Manager: Becca Groves Senior Operations Supervisor: Arnold Vila Operations Specialist: Cathleen Petersen Senior Art Director: Janet Slowik Art Director: Kenny Beck Text and Cover Designer: Wanda Espana OB Poll Graphics: Electra Graphics Cover Art: honey comb and a bee working / Shutterstock / LilKar Sr. Media Project Manager, Editorial: Denise Vaughn Media Project Manager, Production: Lisa Rinaldi Full-Service Project Management: Christian Holdener, S4Carlisle Publishing Services Composition: S4Carlisle Publishing Services Printer/Binder: Courier/Kendallville Cover Printer: Courier/Kendalville Text Font: 10.5/12 ITC New Baskerville Std Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on the appropriate page within text. Copyright © 2013, 2011, 2009, 2007, 2005 by Pearson Education, Inc., publishing as Prentice Hall. All rights reserved. Manufactured in the United States of America. This publication is protected by Copyright, and permission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likewise. To obtain permission(s) to use material from this work, please submit a written request to Pearson Education, Inc., Permissions Department, One Lake Street, Upper Saddle River, New Jersey 07458, or you may fax your request to 201-236-3290. Many of the designations by manufacturers and sellers to distinguish their products are claimed as trademarks. Where those designations appear in this book, and the publisher was aware of a trademark claim, the designations have been printed in initial caps or all caps. Library of Congress Cataloging-in-Publication Data Robbins, Stephen P. Organizational behavior / Stephen P. Robbins, Timothy A. Judge. — 15th ed. p. cm. Includes indexes. ISBN-13: 978-0-13-283487-2 ISBN-10: 0-13-283487-1 1. Organizational behavior. I. Judge, Tim. II. Title. HD58.7.R62 2012 658.3—dc23 2011038674 10 9 8 7 6 5 4 3 2 1 ISBN 10: 0-13-283487-1 ISBN 13: 978-0-13-283487-2
  • 5. Brief Contents Preface 1 xxii Introduction 1 2 The Individual 2 3 4 5 6 7 8 3 What Is Organizational Behavior? 3 Diversity in Organizations 39 Attitudes and Job Satisfaction 69 Emotions and Moods 97 Personality and Values 131 Perception and Individual Decision Making 165 Motivation Concepts 201 Motivation: From Concepts to Applications 239 The Group 9 10 11 12 13 14 15 Foundations of Group Behavior 271 Understanding Work Teams 307 Communication 335 Leadership 367 Power and Politics 411 Conflict and Negotiation 445 Foundations of Organization Structure 479 v
  • 6. vi BRIEF CONTENTS 4 The Organization System 16 Organizational Culture 511 17 Human Resource Policies and Practices 543 18 Organizational Change and Stress Management Appendix A Research in Organizational Behavior Comprehensive Cases Indexes Glindex 637 663 623 577 616
  • 7. Contents Preface 1 1 xxii Introduction What Is Organizational Behavior? 3 The Importance of Interpersonal Skills 4 What Managers Do 5 Management Functions 6 • Management Roles 6 • Management Skills 8 • Effective versus Successful Managerial Activities 8 • A Review of the Manager’s Job 9 Enter Organizational Behavior 10 Complementing Intuition with Systematic Study 11 Disciplines That Contribute to the OB Field 13 Psychology 14 • Social Psychology 14 • Sociology 14 • Anthropology 14 There Are Few Absolutes in OB 14 Challenges and Opportunities for OB 15 Responding to Economic Pressures 15 • Responding to Globalization 16 • Managing Workforce Diversity 18 • Improving Customer Service 18 • Improving People Skills 19 • Stimulating Innovation and Change 20 • Coping with “Temporariness” 20 • Working in Networked Organizations 20 • Helping Employees Balance Work–Life Conflicts 21 • Creating a Positive Work Environment 22 • Improving Ethical Behavior 22 Coming Attractions: Developing an OB Model 23 An Overview 23 • Inputs 24 • Processes 25 • Outcomes 25 Summary and Implications for Managers 30 S A L Self-Assessment Library How Much Do I Know About Organizational Behavior? 4 Myth or Science? “Most Acts of Workplace Bullying Are Men Attacking Women” 12 An Ethical Choice Can You Learn from Failure? 24 glOBalization! Does National Culture Affect Organizational Practices? 30 Point/Counterpoint Lost in Translation? 31 Questions for Review 32 Experiential Exercise Workforce Diversity 32 Ethical Dilemma Jekyll and Hyde 33 Case Incident 1 “Lessons for ‘Undercover’ Bosses” 34 Case Incident 2 Era of the Disposable Worker? 35 vii
  • 8. viii CONTENTS 2 2 The Individual Diversity in Organizations 39 Diversity 40 Demographic Characteristics of the U.S. Workforce 41 • Levels of Diversity 42 • Discrimination 42 Biographical Characteristics 44 Age 44 • Sex 46 • Race and Ethnicity 48 • Disability 48 • Other Biographical Characteristics: Tenure, Religion, Sexual Orientation, and Gender Identity 50 Ability 52 Intellectual Abilities 52 • Physical Abilities 55 • The Role of Disabilities 56 Implementing Diversity Management Strategies 56 Attracting, Selecting, Developing, and Retaining Diverse Employees 56 • Diversity in Groups 58 • Effective Diversity Programs 58 Summary and Implications for Managers 60 S A L Self-Assessment Library What’s My Attitude Toward Older People? 40 Myth or Science? “Dual-Career Couples Divorce Less” 47 An Ethical Choice Religious Tattoos 51 glOBalization! Images of Diversity from Around the Globe 54 Point/Counterpoint Men Have More Mathematical Ability Than Women 61 Questions for Review 62 Experiential Exercise Feeling Excluded 62 Ethical Dilemma Board Quotas 62 Case Incident 1 The Flynn Effect 63 Case Incident 2 Increasing Age Diversity in the Workplace 64 3 Attitudes and Job Satisfaction 69 Attitudes 70 What Are the Main Components of Attitudes? 70 • Does Behavior Always Follow from Attitudes? 71 • What Are the Major Job Attitudes? 73 Job Satisfaction 78 Measuring Job Satisfaction 79 • How Satisfied Are People in Their Jobs? 80 • What Causes Job Satisfaction? 81 • The Impact of Satisfied and Dissatisfied Employees on the Workplace 82 Summary and Implications for Managers 88 S A L Self-Assessment Library How Satisfied Am I with My Job? 70
  • 9. CONTENTS S A L ix An Ethical Choice Do Employers Owe Workers More Satisfying Jobs? 74 glOBalization! Culture and Work–Life Balance 76 Self-Assessment Library Am I Engaged? 78 Myth or Science? “Favorable Job Attitudes Make Organizations More Profitable” 83 Point/Counterpoint Employer–Employee Loyalty Is an Outdated Concept 87 Questions for Review 88 Experiential Exercise What Factors Are Most Important to Your Job Satisfaction? 89 Ethical Dilemma Bounty Hunters 89 Case Incident 1 Long Hours, Hundreds of E-Mails, and No Sleep: Does This Sound Like a Satisfying Job? 90 Case Incident 2 Crafting a Better Job 91 4 Emotions and Moods 97 What Are Emotions and Moods? 98 The Basic Emotions 100 • The Basic Moods: Positive and Negative Affect 100 • The Function of Emotions 102 • Sources of Emotions and Moods 103 Emotional Labor 108 Affective Events Theory 110 Emotional Intelligence 112 The Case for EI 113 • The Case Against EI 114 • Emotion Regulation 115 OB Applications of Emotions and Moods 115 Selection 116 • Decision Making 116 • Creativity 116 • Motivation 117 • Leadership 117 • Negotiation 117 • Customer Service 118 • Job Attitudes 119 • Deviant Workplace Behaviors 119 • Safety and Injury at Work 119 • How Managers Can Influence Moods 120 Summary and Implications for Managers 121 S A S A L L Self-Assessment Library How Are You Feeling Right Now? 98 Self-Assessment Library What’s My Affect Intensity? 104 Myth or Science? We Are Better Judges of When Others Are Happy Than When They Are Sad 107 glOBalization! Should You Expect “Service with a Smile” All Around the World? 108 Self-Assessment Library What’s My Emotional Intelligence Score? 115 An Ethical Choice Schadenfreude 120 Point/Counterpoint Sometimes Blowing Your Top Is a Good Thing 122 Questions for Review 121 Experiential Exercise Who Can Catch a Liar? 123 Ethical Dilemma Happiness Coaches for Employees 123 Case Incident 1 Is It Okay to Cry at Work? 124 Case Incident 2 Can You Read Emotions from Faces? 124 5 Personality and Values 131 Personality 133 What Is Personality? 133 • The Myers-Briggs Type Indicator 135 • The Big Five Personality Model 136 • Other Personality Traits Relevant to OB 139
  • 10. x CONTENTS Values 144 The Importance of Values 144 • Terminal versus Instrumental Values 144 • Generational Values 145 Linking an Individual’s Personality and Values to the Workplace 148 Person–Job Fit 148 • Person–Organization Fit 150 International Values 150 Summary and Implications for Managers 154 S A L Self-Assessment Library Am I a Narcissist? 132 Myth or Science? Personality Predicts the Performance of Entrepreneurs 142 glOBalization! The Right Personality for a Global Workplace 143 An Ethical Choice Should You Try to Change Someone’s Personality? 147 Point/Counterpoint Millennials Are More Narcissistic 155 Questions for Review 156 Experiential Exercise What Organizational Culture Do You Prefer? 156 Ethical Dilemma Freedom or Lack of Commitment? 156 Case Incident 1 Is There a Price for Being Too Nice? 157 Case Incident 2 Leadership from an Introvert’s Perspective 158 6 Perception and Individual Decision Making 165 What Is Perception? 166 Factors That Influence Perception 167 Person Perception: Making Judgments About Others 168 Attribution Theory 168 • Common Shortcuts in Judging Others 170 • Specific Applications of Shortcuts in Organizations 173 The Link Between Perception and Individual Decision Making 174 Decision Making in Organizations 175 The Rational Model, Bounded Rationality, and Intuition 175 • Common Biases and Errors in Decision Making 177 Influences on Decision Making: Individual Differences and Organizational Constraints 184 Individual Differences 184 • Organizational Constraints 186 What About Ethics in Decision Making? 187 Three Ethical Decision Criteria 187 • Improving Creativity in Decision Making 188 Summary and Implications for Managers 190 S A L S A L S A L Self-Assessment Library What Are My Gender Role Perceptions? 166 glOBalization! Chinese Time, North American Time 171 Myth or Science? Creative Decision Making Is a Right-Brain Activity 181 Self-Assessment Library Am I A Deliberate Decision Maker? 183 An Ethical Choice Whose Ethical Standards to Follow? 185 Self-Assessment Library How Creative Am I? 190 Point/Counterpoint Checklists Lead to Better Decisions 191
  • 11. CONTENTS xi Questions for Review 192 Experiential Exercise Biases in Decision Making 193 Ethical Dilemma Do Unethical Decisions Come from Bad Character? 193 Case Incident 1 Computerized Decision Making 194 Case Incident 2 Predictions That Didn’t Quite Pan Out 195 7 Motivation Concepts 201 Defining Motivation 202 Early Theories of Motivation 203 Hierarchy of Needs Theory 203 • Theory X and Theory Y 205 • Two-Factor Theory 205 • McClelland’s Theory of Needs 207 Contemporary Theories of Motivation 208 Self-Determination Theory 208 • Job Engagement 211 • Goal-Setting Theory 212 • Self-Efficacy Theory 215 • Reinforcement Theory 218 • Equity Theory/Organizational Justice 219 • Expectancy Theory 224 Integrating Contemporary Theories of Motivation 226 Summary and Implications for Managers 228 S A L Self-Assessment Library How Confident Am I in My Abilities to Succeed? 202 Myth or Science? “The Support of Others Improves Our Chances of Accomplishing Our Goals” 204 S A L An Ethical Choice Motivated to Behave Unethically 209 glOBalization! Autonomy Needs Around the Globe 210 Self-Assessment Library What Are My Course Performance Goals? 214 Point/Counterpoint Fear Is a Powerful Motivator 229 Questions for Review 230 Experiential Exercise Goal-Setting Task 230 Ethical Dilemma The Big Easy? 230 Case Incident 1 It’s Not Fair! 231 Case Incident 2 Bullying Bosses 231 8 Motivation: From Concepts to Applications 239 Motivating by Job Design: The Job Characteristics Model 240 The Job Characteristics Model 240 • How Can Jobs Be Redesigned? 242 • Alternative Work Arrangements 245 • The Social and Physical Context of Work 249 Employee Involvement 250 Examples of Employee Involvement Programs 251 • Linking Employee Involvement Programs and Motivation Theories 252 Using Rewards to Motivate Employees 252 What to Pay: Establishing a Pay Structure 252 • How to Pay: Rewarding Individual Employees Through Variable-Pay Programs 253 • Flexible
  • 12. xii CONTENTS Benefits: Developing a Benefits Package 257 • Intrinsic Rewards: Employee Recognition Programs 259 Summary and Implications for Managers 261 S A L Self-Assessment Library What’s My Job’s Motivating Potential? 240 Myth or Science? “CEO Pay Can’t Be Measured” 243 An Ethical Choice Identifying Conflicts of Interest 258 glOBalization! Motivated by Individual Goals or Relational Goals? 260 Point/Counterpoint “If Money Doesn’t Make You Happy, You Aren’t Spending It Right” 262 Questions for Review 263 Experiential Exercise Assessing Employee Motivation and Satisfaction Using the Job Characteristics Model 263 Ethical Dilemma Spitting Mad 264 Case Incident 1 Multitasking: A Good Use of Your Time? 264 Case Incident 2 Bonuses Can Backfire 265 3 9 The Group Foundations of Group Behavior 271 Defining and Classifying Groups 272 Why Do People Form Groups? 272 Stages of Group Development 274 The Five-Stage Model 275 • An Alternative Model for Temporary Groups with Deadlines 276 Group Properties: Roles, Norms, Status, Size, Cohesiveness, and Diversity 277 Group Property 1: Roles 277 • Group Property 2: Norms 280 • Group Property 3: Status 285 • Group Property 4: Size 286 • Group Property 5: Cohesiveness 288 • Group Property 6: Diversity 288 Group Decision Making 290 Groups versus the Individual 290 • Groupthink and Groupshift 292 • Group Decision-Making Techniques 295 Summary and Implications for Managers 296 S A L Self-Assessment Library Do I Have a Negative Attitude Toward Working in Groups? 272 Self-Assessment Library Do I Trust Others? 280 glOBalization! Forming International Teams in a Virtual World 291 Myth or Science? “Asians Have Less Ingroup Bias Than Americans” 292 An Ethical Choice Should You Use Group Peer Pressure? 294 Point/Counterpoint Affinity Groups Fuel Business Success 298 Questions for Review 297 Experiential Exercise Wilderness Survival 299 Ethical Dilemma Is Social Loafing Shirking? 300 Case Incident 1 Negative Aspects of Collaboration? 300 Case Incident 2 Herd Behavior and the Housing Bubble (and Collapse) 301
  • 13. CONTENTS 10 Understanding Work Teams 307 Why Have Teams Become So Popular? 308 Differences Between Groups and Teams 309 Types of Teams 310 Problem-Solving Teams 310 • Self-Managed Work Teams 310 • Cross-Functional Teams 311 • Virtual Teams 312 Creating Effective Teams 312 Context: What Factors Determine Whether Teams Are Successful 313 • Team Composition 315 • Team Processes 319 Turning Individuals into Team Players 322 Selecting: Hiring Team Players 323 • Training: Creating Team Players 324 • Rewarding: Providing Incentives to Be a Good Team Player 324 Beware! Teams Aren’t Always the Answer 324 Summary and Implications for Managers 325 S A L S A L Self-Assessment Library How Good Am I at Building and Leading a Team? 308 glOBalization! Group Cohesiveness across Cultures 314 An Ethical Choice Using Global Virtual Teams as an Environmental Choice 315 Myth or Science? “Teams Work Best Under Angry Leaders” 320 Self-Assessment Library What Is My Team Efficacy? 322 Point/Counterpoint We Can Learn Much About Work Teams from Studying Sports Teams 326 Questions for Review 327 Experiential Exercise Fixed versus Variable Flight Crews 327 Ethical Dilemma Unethical Teams 327 Case Incident 1 Why Don’t Teams Work Like They’re Supposed to? 328 Case Incident 2 Multicultural Multinational Teams at IBM 329 11 Communication 335 Functions of Communication 336 The Communication Process 338 Direction of Communication 338 Downward Communication 339 • Upward Communication 339 • Lateral Communication 339 Interpersonal Communication 340 Oral Communication 340 • Written Communication 341 • Nonverbal Communication 341 Organizational Communication 342 Formal Small-Group Networks 343 • The Grapevine 343 • Electronic Communications 345 • Managing Information 349 Choice of Communication Channel 350 xiii
  • 14. xiv CONTENTS Persuasive Communications 351 Automatic and Controlled Processing 351 • Interest Level 352 • Prior Knowledge 352 • Personality 352 • Message Characteristics 352 Barriers to Effective Communication 353 Filtering 353 • Selective Perception 353 • Information Overload 353 • Emotions 353 • Language 354 • Silence 354 • Communication Apprehension 355 • Lying 355 Global Implications 356 Cultural Barriers 356 • Cultural Context 357 • A Cultural Guide 358 Summary and Implications for Managers 360 S A L S A L Self-Assessment Library Am I a Gossip? 336 An Ethical Choice The Ethics of Gossip at Work 345 Myth or Science? “We Know What Makes Good Liars Good” 356 glOBalization! How Direct Should You Be? 358 Point/Counterpoint Social Networking Is Good Business 359 Self-Assessment Library How Good Are My Listening Skills? 360 Questions for Review 360 Experiential Exercise An Absence of Nonverbal Communication 361 Ethical Dilemma Pitfalls of E-Mail 361 Case Incident 1 Using Social Media to Your Advantage 362 Case Incident 2 Should Companies That Fire Shoot First? 362 12 Leadership 367 What Is Leadership? 368 Trait Theories 369 Behavioral Theories 370 Summary of Trait Theories and Behavioral Theories 372 Contingency Theories 372 The Fiedler Model 373 • Other Contingency Theories 375 Leader–Member Exchange (LMX) Theory 377 Charismatic Leadership and Transformational Leadership 379 Charismatic Leadership 379 • Transformational Leadership 382 Authentic Leadership: Ethics and Trust 386 What Is Authentic Leadership? 386 • Ethics and Leadership 386 • Servant Leadership 387 • Trust and Leadership 387 • How Is Trust Developed? 389 • Trust as a Process 390 • What Are the Consequences of Trust? 390 Leading for the Future: Mentoring 391 Mentoring 391 Challenges to the Leadership Construct 393 Leadership as an Attribution 393 • Substitutes for and Neutralizers of Leadership 394 • Online Leadership 395 Finding and Creating Effective Leaders 396 Selecting Leaders 396 • Training Leaders 396
  • 15. CONTENTS Summary and Implications for Managers 397 S A L S A L Self-Assessment Library What’s My Leadership Style? 368 Self-Assessment Library What’s My LPC Score? 373 glOBalization! Cross-Cultural Leadership Styles 378 Self-Assessment Library How Charismatic Am I? 382 Self-Assessment Library Am I an Ethical Leader? 386 An Ethical Choice Do Leaders Have a Responsibility to Protect Followers? 388 Myth or Science? “Power Helps Leaders Perform Better” 392 Point/Counterpoint Heroes Are Made, Not Born 398 Questions for Review 399 Experiential Exercise What Is a Leader? 399 Ethical Dilemma Undercover Leaders 399 Case Incident 1 Leadership Mettle Forged in Battle 400 Case Incident 2 Leadership Factories 400 13 Power and Politics 411 A Definition of Power 412 Contrasting Leadership and Power 413 Bases of Power 414 Formal Power 414 • Personal Power 415 • Which Bases of Power Are Most Effective? 416 • Power and Perceived Justice 416 Dependence: The Key to Power 416 The General Dependence Postulate 416 • What Creates Dependence? 417 Power Tactics 418 Sexual Harassment: Unequal Power in the Workplace 421 Politics: Power in Action 424 Definition of Organizational Politics 424 • The Reality of Politics 424 Causes and Consequences of Political Behavior 426 Factors Contributing to Political Behavior 426 • How Do People Respond to Organizational Politics? 429 • Impression Management 430 The Ethics of Behaving Politically 434 Summary and Implications for Managers 435 S A L S A L Self-Assessment Library Is My Workplace Political? 412 glOBalization! Power Distance and Innovation 420 An Ethical Choice Should All Sexual Behavior Be Prohibited at Work? 423 Myth or Science? “Corporate Political Activity Pays” 428 Self-Assessment Library How Good Am I at Playing Politics? 430 Point/Counterpoint Power Corrupts People 436 Questions for Review 437 Experiential Exercise Understanding Power Dynamics 437 Ethical Dilemma Corporate Spying 438 Case Incident 1 Delegate Power, or Keep It Close? 438 Case Incident 2 The Persuasion Imperative 439 xv
  • 16. xvi CONTENTS 14 Conflict and Negotiation 445 A Definition of Conflict 446 Transitions in Conflict Thought 447 The Traditional View of Conflict 447 • The Interactionist View of Conflict 447 • Resolution-Focused View of Conflict 449 The Conflict Process 449 Stage I: Potential Opposition or Incompatibility 450 • Stage II: Cognition and Personalization 451 • Stage III: Intentions 452 • Stage IV: Behavior 454 • Stage V: Outcomes 455 Negotiation 458 Bargaining Strategies 458 • The Negotiation Process 463 • Individual Differences in Negotiation Effectiveness 464 • Third-Party Negotiations 467 Summary and Implications for Managers 469 S A S A L L Self-Assessment Library What’s My Preferred Conflict-Handling Style? 446 Myth or Science? “Communicating Well Is More Important in Cross-Cultural Negotiations” 462 glOBalization! Anger and Conflict Across Cultures 467 Self-Assessment Library What’s My Negotiating Style? 467 An Ethical Choice Using Empathy to Negotiate More Ethically 468 Point/Counterpoint Player–Owner Disputes Are Unnecessary 471 Questions for Review 472 Experiential Exercise A Negotiation Role-Play 472 Ethical Dilemma The Lowball Applicant 473 Case Incident 1 Choosing Your Battles 473 Case Incident 2 Mediation: Master Solution to Employment Disputes? 474 15 Foundations of Organization Structure 479 What Is Organizational Structure? 480 Work Specialization 480 • Departmentalization 482 • Chain of Command 483 • Span of Control 484 • Centralization and Decentralization 485 • Formalization 486 Common Organizational Designs 486 The Simple Structure 486 • The Bureaucracy 487 • The Matrix Structure 488 New Design Options 490 The Virtual Organization 490 • The Boundaryless Organization 492 • The Leaner Organization: Downsizing 494 Why Do Structures Differ? 496 Organizational Strategy 496 • Organization Size 498 • Technology 498 • Environment 499 Organizational Designs and Employee Behavior 501 Summary and Implications for Managers 502
  • 17. CONTENTS S A L xvii Self-Assessment Library Do I Like Bureaucracy? 480 Self-Assessment Library How Willing Am I to Delegate? 486 glOBalization! The Global Organization 489 An Ethical Choice Downsizing with a Conscience 496 Myth or Science? “Employees Resent Outsourcing” 500 Point/Counterpoint The End of Management 503 Questions for Review 504 Experiential Exercise Dismantling a Bureaucracy 504 Ethical Dilemma Directing the Directors 505 Case Incident 1 Creative Deviance: Bucking the Hierarchy? 506 Case Incident 2 Siemens’ Simple Structure—Not 506 4 16 The Organization System Organizational Culture 511 What Is Organizational Culture? 512 A Definition of Organizational Culture 512 • Culture Is a Descriptive Term 514 • Do Organizations Have Uniform Cultures? 514 • Strong versus Weak Cultures 514 • Culture versus Formalization 515 What Do Cultures Do? 516 Culture’s Functions 516 • Culture Creates Climate 516 • Culture as a Liability 517 Creating and Sustaining Culture 519 How a Culture Begins 519 • Keeping a Culture Alive 519 • Summary: How Cultures Form 523 How Employees Learn Culture 523 Stories 523 • Rituals 524 • Material Symbols 524 • Language 524 Creating an Ethical Organizational Culture 525 Creating a Positive Organizational Culture 527 Spirituality and Organizational Culture 529 What Is Spirituality? 529 • Why Spirituality Now? 530 • Characteristics of a Spiritual Organization 530 • Achieving a Spiritual Organization 531 • Criticisms of Spirituality 531 Global Implications 532 Summary and Implications for Managers 533 S A L Self-Assessment Library What’s the Right Organizational Culture for Me? 512 glOBalization! Face Culture, Dignity Culture, and Organizational Culture 515 Myth or Science? “Employees Treat Customers the Same Way the Organization Treats Them” 518 An Ethical Choice Designing a Culture of Ethical Voice 526
  • 18. xviii CONTENTS S A L Self-Assessment Library How Spiritual Am I? 531 Point/Counterpoint Organizations Should Strive to Create a Positive Organizational Culture 534 Questions for Review 535 Experiential Exercise Rate Your Classroom Culture 535 Ethical Dilemma A Bankrupt Culture 536 Case Incident 1 Mergers Don’t Always Lead to Culture Clashes 536 Case Incident 2 Did Toyota’s Culture Cause Its Problems? 537 17 Human Resource Policies and Practices 543 Selection Practices 544 How the Selection Process Works 544 • Initial Selection 545 • Substantive Selection 546 • Contingent Selection 549 • International Variations in Selection Processes 550 Training and Development Programs 551 Types of Training 551 • Training Methods 553 • Evaluating Effectiveness 554 Performance Evaluation 554 What Is Performance? 555 • Purposes of Performance Evaluation 555 • What Do We Evaluate? 555 • Who Should Do the Evaluating? 556 • Methods of Performance Evaluation 558 • Suggestions for Improving Performance Evaluations 560 • Providing Performance Feedback 562 • International Variations in Performance Appraisal 563 Managing Work–Life Conflicts in Organizations 563 Summary and Implications for Managers 566 S A L S A L Self-Assessment Library How Much Do I Know About Human Resource Management (HRM)? 544 glOBalization! Performance Appraisal Around the World 558 An Ethical Choice Recruiting the Unemployed 561 Self-Assessment Library How Good Am I at Giving Performance Feedback? 563 Myth or Science? “Work Is Making Us Fat” 564 Point/Counterpoint Social Media Is a Great Source of New Hires 567 Questions for Review 568 Experiential Exercise Evaluating Performance and Providing Feedback 568 Ethical Dilemma Credit Checking 568 Case Incident 1 The End of the Performance Appraisal? 569 Case Incident 2 Job Candidates Without Strong SAT Scores Need Not Apply 570 18 Organizational Change and Stress Management 577 Forces for Change 578 Planned Change 580 Resistance to Change 580 Overcoming Resistance to Change 582 • The Politics of Change 584
  • 19. CONTENTS xix Approaches to Managing Organizational Change 584 Lewin’s Three-Step Model 584 • Kotter’s Eight-Step Plan for Implementing Change 586 • Action Research 587 • Organizational Development 587 Creating a Culture for Change 591 Stimulating a Culture of Innovation 591 • Creating a Learning Organization 593 Work Stress and Its Management 595 What Is Stress? 595 • Potential Sources of Stress 597 • Individual Differences 599 • Cultural Differences 600 • Consequences of Stress 601 • Managing Stress 602 Summary and Implications for Managers 606 S A L S A L Self-Assessment Library How Well Do I Respond to Turbulent Change? 578 Myth or Science? “Men Experience More Job Stress Than Women” 596 Self-Assessment Library How Stressful Is My Life? 600 An Ethical Choice Responsibly Managing Your Own Stress 601 glOBalization! Work–Family Stress in Different Cultures 604 Point/Counterpoint Responsible Managers Relieve Stress on Their Employees 607 Questions for Review 608 Experiential Exercise Power and the Changing Environment 608 Ethical Dilemma Changes at WPAC 609 Case Incident 1 Starbucks Returns to Its Roots 610 Case Incident 2 The Rise of Extreme Jobs 610 Appendix A Research in Organizational Behavior 616 Comprehensive Cases Indexes Glindex 637 663 623
  • 20. About the Authors Stephen P. Robbins Education Ph.D. University of Arizona Professional Experience Academic Positions: Professor, San Diego State University, Southern Illinois University at Edwardsville, University of Baltimore, Concordia University in Montreal, and University of Nebraska at Omaha. Research: Research interests have focused on conflict, power, and politics in organizations, behavioral decision making, and the development of effective interpersonal skills. Books Published: World’s best-selling author of textbooks in both management and organizational behavior. His books have sold more than 5 million copies and have been translated into 20 languages; editions have been adapted for Canada, Australia, South Africa, and India, such as these: • • • • • • • • • • • Essentials of Organizational Behavior, 11th ed. (Prentice Hall, 2012) Management, 11th ed. with Mary Coulter (Prentice Hall, 2012) Fundamentals of Human Resource Management, 10th ed., with David DeCenzo (Wiley, 2010) Prentice Hall’s Self-Assessment Library 3.4 (Prentice Hall, 2010) Fundamentals of Management, 8th ed., with David DeCenzo and Mary Coulter (Prentice Hall, 2013) Supervision Today! 7th ed., with David DeCenzo and Robert Wolter (Prentice Hall, 2013) Training in Interpersonal Skills: TIPS for Managing People at Work, 6th ed., with Phillip Hunsaker (Prentice Hall, 2012) Managing Today! 2nd ed. (Prentice Hall, 2000) Organization Theory, 3rd ed. (Prentice Hall, 1990) The Truth About Managing People, 2nd ed. (Financial Times/Prentice Hall, 2008) Decide and Conquer: Make Winning Decisions and Take Control of Your Life (Financial Times/Prentice Hall, 2004). Other Interests In his “other life,” Dr. Robbins actively participates in masters’ track competition. Since turning 50 in 1993, he has won 18 national championships and 12 world titles. He is the current world record holder at 100 meters (12.37 seconds) and 200 meters (25.20 seconds) for men 65 and over. xx
  • 21. ABOUT THE AUTHORS xxi Timothy A. Judge Education Ph.D., University of Illinois at Urbana-Champaign Professional Experience Academic Positions: Franklin D. Schurz Chair, Department of Management, Mendoza College of Business, University of Notre Dame; Matherly-McKethan Eminent Scholar in Management, Warrington College of Business Administration, University of Florida; Stanley M. Howe Professor in Leadership, Henry B. Tippie College of Business, University of Iowa; Associate Professor (with tenure), Department of Human Resource Studies, School of Industrial and Labor Relations, Cornell University; Lecturer, Charles University, Czech Republic, and Comenius University, Slovakia; Instructor, Industrial/Organizational Psychology, Department of Psychology, University of Illinois at Urbana-Champaign. Research: Dr. Judge’s primary research interests are in (1) personality, moods, and emotions; (2) job attitudes; (3) leadership and influence behaviors; and (4) careers (person–organization fit, career success). Dr. Judge has published more than 140 articles on these and other major topics in journals such as Journal of Organizational Behavior, Personnel Psychology, Academy of Management Journal, Journal of Applied Psychology, European Journal of Personality, and European Journal of Work and Organizational Psychology. Fellowship: Dr. Judge is a fellow of the American Psychological Association, the Academy of Management, the Society for Industrial and Organizational Psychology, and the American Psychological Society. Awards: In 1995, Dr. Judge received the Ernest J. McCormick Award for Distinguished Early Career Contributions from the Society for Industrial and Organizational Psychology. In 2001, he received the Larry L. Cummings Award for mid-career contributions from the Organizational Behavior Division of the Academy of Management. In 2007, he received the Professional Practice Award from the Institute of Industrial and Labor Relations, University of Illinois. Books Published: H. G. Heneman III, T. A. Judge, and J. D. Kammeyer-Mueller, Staffing Organizations, 7th ed. (Madison, WI: Mendota House/Irwin, 2011) Other Interests Although he cannot keep up (literally!) with Dr. Robbin’s accomplishments on the track, Dr. Judge enjoys golf, cooking and baking, literature (he’s a particular fan of Thomas Hardy and is a member of the Thomas Hardy Society), and keeping up with his three children, who range in age from 23 to 9.
  • 22. Preface Welcome to the fifteenth edition of Organizational Behavior! Long considered the standard for all organizational behavior textbooks, this edition continues its tradition of making current, relevant research come alive for students. While maintaining its hallmark features—clear writing style, cutting-edge content, and engaging pedagogy—the fourteenth edition has been updated to reflect the most recent research within the field of organizational behavior. This is one of the most comprehensive and thorough revisions of Organizational Behavior we’ve undertaken, and while we’ve preserved the core material, we’re confident that this edition reflects the most important research and topical issues facing organizations, managers, and employees. Key Changes to the Fifteenth Edition • The most substantial updating ever. The following sections of each chapter are new to the fifteenth edition: • Opening Vignette • Myth or Science? • Ethical Choice • Point/Counterpoint • Case Incident • In addition, the following material is substantially revised and updated: • Case Incident (those not entirely new are revised and updated) • OB Poll (more than half are new to this edition) • Ethical Dilemma (more than half are new to this edition) • Photos/captions (more than half are new to this edition) • New feature: glOBalization!, which features organizational behavior in an international context. Improved integration of global implications: With the explosion of international research, global OB research is now woven into each chapter, rather than in a stand-alone section at the end of the chapter. Revision to Summary and Implications for Managers section, with more focus on practical ways to apply the material on the job. NEW videos—up-to-date videos showing management topics in action, access to the complete management video library, as well as instructional materials for integrating clips from popular movies into your class, are at www.mymanagementlab.com. • • • Chapter-by-Chapter Changes Chapter 1: What Is Organizational Behavior? • Entirely new Opening Vignette (The New Normal?) • New feature: glOBalization! • New Myth or Science? (“Most Acts of Workplace Bullying Are Men Attacking Women”) • New OB Model, with better integration with pedagogy (structure) of book xxii
  • 23. PREFACE • • • • xxiii New Point–Counterpoint (Lost in Translation?) New An Ethical Choice (Can You Learn from Failure?) New Case Incident (Lessons for ‘Undercover’ Bosses) New Case Incident (Era of the Disposable Worker?) Chapter 2: Diversity in Organizations • Entirely new Opening Vignette (The Rise and Fall of Erin Callan) • New feature: glOBalization! • New Myth or Science? (“Dual-Career Couples Divorce Less”) • Enhanced coverage of stereotyping and discrimination research • Revised content regarding age discrimination and implications of an aging workforce • Updates to discussion of disability in the workplace • Expanded coverage of sexual orientation discrimination • New material and integration of diversity with international/cultural diversity • New Point–Counterpoint (Men Have More Mathematical Ability Than Women) • New An Ethical Choice (Religious Tattoos) • New Case Incident (Increasing Age Diversity in the Workplace) • Updated Case Incident (The Flynn Effect) Chapter 3: Attitudes and Job Satisfaction • Entirely new Opening Vignette (What Does SAS Stand For?) • New feature: glOBalization! • New Myth or Science? (“Favorable Job Attitudes Make Organizations More Profitable”) • Review of recent studies on within-person variation in job attitudes • New developments in organizational commitment • Updated material on organizational citizenship behaviors • New perspectives on attitudes and organizational performance • New ethical dilemma • New Point–Counterpoint (Employer–Employee Loyalty Is an Outdated Concept) • New An Ethical Choice (Do Employers Owe Workers More Satisfying Jobs?) • New Case Incident (Crafting a Better Job) • Updated Case Incident (Long Hours, Hundreds of E-Mails, and No Sleep: Does This Sound Like a Satisfying Job?) Chapter 4: Emotions and Moods • Entirely new Opening Vignette (Love at Work: Taboo No More?) • New feature: glOBalization! • New Myth or Science? (“We Are Better Judges of When Others Are Happy Than When They Are Sad”) • Revised introduction to the topic • Review of research on moods and employee attachment • New section on “moral emotions” • Discussion of emotion regulation strategies and their consequences • New research on gender and emotions • Updated content on emotional displays at work • New section on Emotional Intelligence, with substantially more coverage and a new exhibit • New Point–Counterpoint (Sometimes Blowing Your Top Is a Good Thing) • New An Ethical Choice (Schadenfreude) • New Case Incident (Is It Okay to Cry at Work?) • Updated Case Incident (Can You Read Emotions from Faces?)
  • 24. xxiv PREFACE Chapter 5: Personality and Values • Entirely new Opening Vignette (Changing of the Guard in Japan: Is it the Economy, or the Values?) • New feature: glOBalization! • New Myth or Science? (“Personality Predicts the Performance of Entrepreneurs”) • Introduces concepts related to dispositional self- and other-orientation • New material regarding vocational choices • New discussion of values and reactions to violations of employee values • Major revision regarding Hofstede’s model of culture and its consequences • Updated information on personality and expatriate success • New Point–Counterpoint (Millennials Are More Narcissistic) • New An Ethical Choice (Should You Try to Change Someone’s Personality?) • New Case Incident (Leadership from an Introvert’s Perspective) • Updated Case Incident (Is There a Price for Being Too Nice?) Chapter 6: Perception and Individual Decision Making • Entirely new Opening Vignette (Do Machines Make Better Decisions?) • New feature: glOBalization! • New Myth or Science? (“Creative Decision Making Is a Right-Brain Activity”) • Review of recent work on self-serving biases • New information on stereotyping processes • Discussion of latest trends in decision errors research • Updated discussion of culture and perceptions • New section on Financial Decision Making and how it informs to understand recent and current crises • New Experiential Exercise • New Point–Counterpoint (Checklists Lead to Better Decisions) • New An Ethical Choice (Whose Ethical Standards to Follow?) • New Case Incident (Computerized Decision Making) • Updated Case Incident (Predictions That Didn’t Quite Pan Out) Chapter 7: Motivation Concepts • Entirely new Opening Vignette (The Motivations of the 99ers) • New feature: glOBalization! • New Myth or Science? (“The Support of Others Improves Our Chances of Accomplishing Our Goals”) • New material on psychological need theories • Increased discussion of employee engagement • Updates to the discussion on goal-setting theory • New perspectives on equity and organizational justice • New Point–Counterpoint (Fear Is a Powerful Motivator) • New An Ethical Choice (Motivated to Behave Unethically) • New Case Incident (It’s Not Fair!) • Updated Case Incident (Bullying Bosses) Chapter 8: Motivation: From Concepts to Applications Entirely new Opening Vignette (Motivation Minus the Moolah) • New feature: glOBalization! • New Myth or Science? (“CEO Pay Can’t Be Measured”) • Updated discussion of job characteristics • New coverage of flextime, telecommuting, and related work practices • Revised discussion of employee empowerment and its effects • Discussion of innovations in gainsharing practices •
  • 25. PREFACE • • • xxv New Point–Counterpoint (“If Money Doesn’t Make You Happy, You Aren’t Spending It Right”) New Case Incident (Bonuses Can Backfire) Updated Case Incident (Multitasking: A Good Use of Your Time?) Chapter 9: Foundations of Group Behavior • Entirely new Opening Vignette (To the Clickers Go the Spoils) • New feature: glOBalization! • New Myth or Science? (“Asians Have Less Ingroup Bias Than Americans”) • New material on dysfunctional behavior in teams • Discussion of minority influence on group decision making • Introduces material on team mental models • Updated information on group decision errors and groupthink • New information on international variations in group behavior • New Point–Counterpoint (Affinity Groups Fuel Business Success) • New An Ethical Choice (Should You Use Group Peer Pressure?) • New Case Incident (Negative Aspects of Collaboration?) • Updated Case Incident (Herd Behavior and the Housing Bubble [and Collapse]) Chapter 10: Understanding Work Teams • Entirely new Opening Vignette (Killing bin Laden) • New feature: glOBalization! • New Myth or Science? (“Teams Work Best Under Angry Leaders”) • Updated discussion of strategies to improve team performance • Review of research on team decision-making strategies • New perspectives on creativity in teams • New material on team proactivity • Presents new literature on work teams in international contexts • New Point–Counterpoint (We Can Learn Much about Work Teams from Studying Sports Teams) • New An Ethical Choice (Using Global Virtual Teams as an Environmental Choice) • New Case Incident (Why Don’t Teams Work Like They’re Supposed To?) • Updated Case Incident (Multicultural Multinational Teams at IBM) Chapter 11: Communication • Entirely new Opening Vignette (Goldman Rules) • New feature: glOBalization! • New Myth or Science? (“We Know What Makes Good Liars Good”) • New section on Social Networking • New section on Persuasive Communication strategies • Discussion of how to frame messages for maximum impact • Discussion of the effects of authority, expertise, and liking on communication effectiveness • Updated discussion of body language in communication • Introduces new ideas about the effects of electronic communications • New Point–Counterpoint (Social Networking Is Good Business) • New An Ethical Choice (The Ethics of Gossip at Work) • New Case Incident (Using Social Media to Your Advantage) • Updated Case Incident (Should Companies That Fire Shoot First?)
  • 26. xxvi PREFACE Chapter 12: Leadership • Entirely new Opening Vignette (Making Google’s Leaders) • New feature: glOBalization! • New Myth or Science? (“Power Helps Leaders Perform Better”) • Expanded discussion of leader effects on employee attitudes • New perspectives on culture and leadership • New material regarding emotional intelligence and leadership • Increased consideration of contemporary theories of leadership • Consideration of “servant leadership” • Discussion of how leaders can increase employee creativity • New Point–Counterpoint (Heroes Are Made, Not Born) • New An Ethical Choice (Do Leaders Have a Responsibility to Protect Followers?) • New Case Incident (Leadership Mettle Forged in Battle) • Updated Case Incident (Leadership Factories) Chapter 13: Power and Politics • Entirely new Opening Vignette (Appearances Can Be Deceiving) • New feature: glOBalization! • New Myth or Science? (“Corporate Political Activity Pays”) • Coverage of latest research on influence tactics • Revised discussion of sexual harassment • Updated discussion of political behavior in organizations • Revision to international issues in power and politics • New Point–Counterpoint (Power Corrupts People) • New An Ethical Choice (Should All Sexual Behavior Be Prohibited at Work?) • New Case Incident (Delegate Power, or Keep it Close?) • Updated Case Incident (The Persuasion Imperative) Chapter 14: Conflict and Negotiation • Entirely new Opening Vignette (No Conflict at the Post Office. . . Is That Good?) • New feature: glOBalization! • New Myth or Science? (“Communicating Well Is More Important in CrossCultural Negotiations”) • Updated material on gender and negotiation styles • New material on individual differences in negotiation styles • Discussion of emotions in negotiation • New information on suspicion and deception in negotiation • Updates to discussion on conflict and conflict management processes • New Point–Counterpoint (Player–Owner Disputes Are Unnecessary) • New An Ethical Choice (Using Empathy to Negotiate More Ethically) • New Case Incident (Choosing Your Battles) • Updated Case Incident (Mediation: Master Solution to Employment Disputes?) Chapter 15: Foundations of Organization Structure • Entirely new Opening Vignette (Dismantling a Bureaucracy) • New feature: glOBalization! • New Myth or Science? (“Employees Resent Outsourcing”) • Latest research on boundaryless organizations and their functioning • Discussion of technology’s influence on organizational structure
  • 27. PREFACE • • • • xxvii Updated review of the relationship between organizational structure and attitudes New An Ethical Choice (Downsizing with a Conscience) New Case Incident (Creative Deviance: Bucking the Hierarchy?) Updated Case Incident (Siemens’ Simple Structure—Not) Chapter 16: Organizational Culture • Entirely new Opening Vignette (Ursula M. Burns and the Culture of Xerox) • New feature: glOBalization! • New Myth or Science? (“Employees Treat Customers the Same Way the Organization Treats Them”) • New review of basic issues in organizational culture and subcultures • Enhanced discussion of ethical culture • Review of culture and organizational performance • Revised discussion of organizational socialization practices and outcomes • New Point–Counterpoint (Organizations Should Strive to Create a Positive Organizational Culture) • New An Ethical Choice (Designing a Culture of Ethical Voice) • New Case Incident (Did Toyota’s Culture Cause Its Problems?) • Updated Case Incident (Mergers Don’t Always Lead to Culture Clashes) Chapter 17: Human Resource Policies and Practices • Entirely new Opening Vignette (Testing NFL Quarterbacks) • New feature: glOBalization! • New Myth or Science? (“Work Is Making Us Fat”) • Discussion of the implications of the Great Recession • New material on legal issues • Updated discussion of the effects of high performance work practice on employee attitudes and behavior • Expanded discussion of the effects of staffing decisions on employee turnover • New section on Job Performance and Workplace Civility • New material related to performance appraisals and rater goals • New Point–Counterpoint (Social Media Is a Great Source of New Hires) • New An Ethical Choice (Recruiting the Unemployed) • New Case Incident (The End of the Performance Appraisal?) • Updated Case Incident (Job Candidates Without Strong SAT Scores Need Not Apply) Chapter 18: Organizational Change and Stress Management • Entirely new Opening Vignette (Sweet Changes at Cadbury?) • New feature: glOBalization! • New Myth or Science? (“Men Experience More Job Stress Than Women”) • Updated review of research on individual readiness for organizational change • Discussion of maladaptive behavioral response to stress at work • Updated discussion of coping strategies • Implications of the stress-health relationship • New Point–Counterpoint (Responsible Managers Relieve Stress on Their Employees) • New An Ethical Choice (Responsibly Managing Your Own Stress) • New Case Incident (Starbucks Returns to Its Roots) • Updated Case Incident (The Rise of Extreme Jobs)
  • 28. xxviii PREFACE Teaching and Learning Support MyManagementLab (www.mymanagementlab.com) is an easy-to-use online tool that personalizes course content and provides robust assessment and reporting to measure student and class performance. All the resources you need for course success are in one place—flexible and easily adapted for your course experience. Instructor’s Resource Center At www.pearsonhighered.com/irc, instructors can access a variety of print, digital, and presentation resources available with this text in downloadable format. Registration is simple and gives you immediate access to new titles and new editions. As a registered faculty member, you can download resource files and receive immediate access and instructions for installing course management content on your campus server. If you need assistance, our dedicated technical support team is ready to help with the media supplements that accompany this text. Visit 247pearsoned .custhelp.com for answers to frequently asked questions and toll-free user support phone numbers. The following supplements are available to adopting instructors (for detailed descriptions, please visit www.pearsonhighered.com/irc): • • • • • Instructor’s Manual—updated and revised to provide ideas and resources in the classroom. Test Item File—Revised and updated to include questions that require students to apply the knowledge that they’ve read about in the text through Learning Objectives and Learning Outcomes. Questions are also tagged to reflect the AACSB Learning Standards. TestGen Test Generating Software—Test management software that contains all material from the Test Item File. This software is completely userfriendly and allows instructors to view, edit, and add test questions with just a few mouse clicks. All of our TestGens are converted for use in Blackboard and WebCT and are available for download from www.pearsonhighered .com/irc. PowerPoint Presentation—A ready-to-use PowerPoint slideshow designed for classroom presentation. Use it as is, or edit content to fit your individual classroom needs. Image Library—includes all the charts, tables, and graphs that are found in the text. Videos on DVD Adopters can access the 48 videos on the 2013 Organizational Behavior Video Library DVD. These videos have been produced to depict real-world OB issues and give students a taste of the multi-faceted nature of OB in real companies. Learning Management Systems BlackBoard and WebCT Course Cartridges are available for download from www.pearsonhighered.com/irc. These standard course cartridges contain the Instructor’s Manual, TestGen, Instructor PowerPoints, and when available, Student PowerPoints and Student Data Files.
  • 29. PREFACE xxix CourseSmart eTextbooks Online Developed for students looking to save money on required or recommended textbooks, CourseSmart eTextbooks online save students money compared with the suggested list price of the print text. Students simply select their eText by title or author and purchase immediate access to the content for the duration of the course using any major credit card. With CourseSmart eText, students can search for specific keywords or page numbers, make notes online, print reading assignments that incorporate lecture notes, and bookmark important passages for later review. For more information, or to purchase a CourseSmart eTextbook, visit www.coursesmart.com. Pearson’s Self-Assessment Library (S.A.L.) A hallmark of the Robbins series, S.A.L. is a unique learning tool that allows you to assess your knowledge, beliefs, feelings, and actions in regard to a wide range of personal skills, abilities, and interests. Self-assessments have been integrated into each chapter, including a self-assessment at the beginning of each chapter. S.A.L. helps students better understand their interpersonal and behavioral skills as they relate to the theoretical concepts presented in each chapter. Highlights • • • • • • 69 research-based self-assessments—All 69 instruments of our collection are from sources such as Journal of Social Behavior and Personality, Harvard Business Review, Organizational Behavior: Experiences and Cases, Journal of Experimental Education, Journal of Applied Measurement, and more. Work–life and career focused—All self-assessments are focused to help individuals better manage their work lives or careers. Organized in four parts, these instruments offer you one source from which to learn more about yourself. Choice of formats—The Prentice Hall Self-Assessment Library is available in CD-ROM, online, or print format. Save feature—Students can take the self-assessments an unlimited number of times, and they can save and print their scores for class discussion. Scoring key—The key to the self-assessments has been edited by Steve Robbins to allow students to quickly make sense of the results of their score. Instructor’s manual—An Instructor’s Manual guides instructors in interpreting self-assessments and helps facilitate better classroom discussion.
  • 30. Acknowledgments Getting this book into your hands was a team effort. It took faculty reviewers and a talented group of designers and production specialists, editorial personnel, and marketing and sales staff. More than one hundred instructors reviewed parts or all of Organizational Behavior, Fifteenth Edition. Their comments, compliments, and suggestions have significantly improved the final product. The authors wish to thank John D. Kammeyer-Mueller of the University of Florida for help with several key aspects of this revision. The authors would also like to extend their sincerest thanks to the following instructors: Lee Boam, University of Utah Andres Johnson, Santa Clara University Edward Lisoski, Northeastern University Douglas Mahony, Lehigh University Douglas McCabe, Georgetown University Bradley Norris, Baylor University Jonelle Roth, Michigan State University Philip Roth, Clemson University Dale Rude, University of Houston Holly Schroth, University of California at Berkeley Jody Tolan, University of Southern California Debra Schneck, Indiana University Marilyn Wesner, George Washington University Over the last editions this text has grown stronger with the contribution and feedback of the following instructors: David Abramis, California State University Chris Adalikwu, Concordia College Basil Adams, Notre Dame de Namur University Janet Adams, Kennesaw State University Cheryl Adkins, Longwood College Vicky Aitken, St. Louis Community College David Albritton, Northern Arizona University Bradley Alge, Purdue University Lois Antonen, CSUS Lucy Arendt, University of Wisconsin, Green Bay Anke Arnaud, University of Central Florida Mihran Aroian, University of Texas, Austin Gary Ballinger, Purdue University Deborah Balser, University of Missouri at St. Louis Christopher Barlow, DePaul University Joy Benson, University of Wisconsin at Green Bay Lehman Benson III, University of Arizona Jacqui Bergman, Appalachian State University Anne Berthelot, University of Texas at El Paso David Bess, Shidler College of Business at the University of Hawaii Bruce Bikle, California State University, Sacramento xxx Richard Blackburn, University of North Carolina–Chapel Hill Weldon Blake, Bethune-Cookman College Carl Blencke, University of Central Florida Michael Bochenek, Elmhurst College Alicia Boisnier, State University of New York William H. Bommer, Cleveland State University Bryan Bonner, University of Utah Jessica Bradley, Clemson University Dr. Jerry Bream, Empire State College/ Niagara Frontier Center Jim Breaugh, University of Missouri Peggy Brewer, Eastern Kentucky University Deborah Brown, North Carolina State University Reginald Bruce, University of Louisville Jeff Bruns, Bacone College Pamela Buckle, Adelphi University Patricia Buhler, Goldey-Beacom College Allen Bures, Radford University Edith Busija, University of Richmond Holly Buttner, University of North Carolina at Greensboro Michael Cafferky, Southern Adventist University Scott Campbell, Francis Marion University Elena Capella, University of San Francisco
  • 31. ACKNOWLEDGMENTS Don Capener, Monmouth University Dan Caprar, University of Iowa David Carmichael, Oklahoma City University Carol Carnevale, SUNY Empire State College Donald W. Caudill, Bluefield College Suzanne Chan, Tulane University Anthony Chelte, Midwestern State University Bongsoon Cho, State University of New York—Buffalo Savannah Clay, Central Piedmont Community College David Connelly, Western Illinois State University Jeffrey Conte, San Diego State University Jane Crabtree, Benedictine University Suzanne Crampton, Grand Valley State University Douglas Crawford, Wilson College Michael Cruz, San Jose State University Robert Cyr, Northwestern University Evelyn Dadzie, Clark Atlanta University Joseph Daly, Appalachian State University Denise Daniels, Seattle Pacific University Marie Dasborough, Oklahoma State University Nancy Da Silva, San Jose State University Christine Day, Eastern Michigan University Emmeline de Pillis, University of Hawaii, Hilo Kathy Lund Dean, Idaho State University Roger Dean, Washington & Lee University Robert DelCampo, University of New Mexico Kristen Detienne, Brigham Young University Doug Dierking, University of Texas at Austin Cynthia Doil, Southern Illinois University Jennifer Dose, Messiah College Ceasar Douglas, Florida State University David Duby, Liberty University Ken Dunegan, Cleveland State University Michael Dutch, Greensboro College Kathleen Edwards, University of Texas at Austin Berrin Erdogan, Portland State University Ellen Fagenson Eland, George Mason University Lenny Favara, Central Christian College Claudia Ferrante, U.S. Air Force Academy Andy Fitorre, Nyack College Kathleen Fleming, Averett University Erin Fluegge, University of Florida Edward Fox, Wilkes University Alison Fragale, University of North Carolina at Chapel Hill Lucy Franks, Bellevue University Dean Frear, Wilkes University xxxi Jann Freed, Central College Crissie Frye, Eastern Michigan University Diane Galbraith, Slippery Rock University Carolyn Gardner, Radford University Janice Gates, Western Illinois University Ellen Kaye Gehrke, Alliant International University James Gelatt, University of Maryland University College Joe Gerard, University of Wisconsin at Milwaukee Matthew Giblin, Southern Illinois University Donald Gibson, Fairfield University Cindi Gilliland, The University of Arizona Mary Giovannini, Truman State University David Glew, University of North Carolina at Wilmington Leonard Glick, Northeastern University Reginald Goodfellow, California State University Jeffrey Goldstein, Adelphi University Jodi Goodman, University of Connecticut Claude Graeff, Illinois State University Richard Grover, University of Southern Maine W. Lee Grubb III, East Carolina University John Guarino, Averett University Rebecca Guidice, University of Nevada at Las Vegas Andra Gumbus, Sacred Heart University Linda Hackleman, Concordia University Austin Deniz Hackner, Tidewater Community College Michael Hadani, Long Island University Jonathon Halbesleben, University of Missouri-Columbia Dan Hallock, University of North Alabama Tracey Rockett Hanft, University of Texas at Dallas Edward Hampton, University of Central Florida Vernard Harrington, Radford University Nell Hartley, Robert Morris University Barbara Hassell, Indiana University, Kelley School of Business Erin Hayes, George Washington University Tom Head, Roosevelt University Douglas Heeter, Ferris State University David Henderson, University of Illinois at Chicago Scott Henley, Oklahoma City University Ted Herbert, Rollins College Susan Herman, University of Alaska Fairbanks James Hess, Ivy Tech Community College Ronald Hester, Marymount University
  • 32. xxxii ACKNOWLEDGMENTS Patricia Hewlin, Georgetown University Chad Higgins, University of Washington Kim Hinrichs, Minnesota State University Mankato Kathie Holland, University of Central Florida Elaine Hollensbe, University of Cincinnati Kristin Holmberg-Wright, University of Wisconsin at Parkside Brooks Holtom, Georgetown University Lisa Houts, California State University Fullerton Abigail Hubbard, University of Houston Paul Hudec, Milwaukee School of Engineering Stephen Humphrey, Florida State University Charlice Hurst, University of Florida Warren Imada, Leeward Community College Gazi Islam, Tulane University Alan Jackson, Peru State College Christine Jackson, Purdue University Marsha Jackson, Bowie State University Kathryn Jacobson, Arizona State University Paul Jacques, Western Carolina University David Jalajas, Long Island University Elizabeth Jamison, Radford University Stephen Jenner, California State University, Dominguez Hills John Jermier, University of South Florida Jack Johnson, Consumnes River College Michael Johnson, University of Washington David Jones, South University Ray Jones, University of Pittsburgh Anthony Jost, University of Delaware Louis Jourdan, Clayton College Rusty Juban, Southeastern Illinois University Carole L. Jurkiewicz, Louisiana State University John Kammeyer-Mueller, University of Florida Edward Kass, Saint Joseph’s University Marsha Katz, Governors State College James Katzenstein, California State University John Keiser, SUNY College at Brockport Mark Kendrick, Methodist University Mary Kern, Baruch College Robert Key, University of Phoenix Sigrid Khorram, University of Texas at El Paso Hal Kingsley, Erie Community College Jeffrey Kobles, California State University San Marcos Jack Kondrasuk, University of Portland Leslie A. Korb, University of Nebraska at Kearney Glen Kreiner, University of Cincinnati James Kroeger, Cleveland State University Frederick Lane, Baruch College Rebecca Lau, Virginia Polytechnic Institute and State University David Leuser, Plymouth State College Julia Levashina, Indiana State University Kokomo Benyamin Lichtenstein, University of Massachusetts at Boston Robert Liden, University of Illinois at Chicago Don Lifton, Ithaca College Ginamarie Ligon, Villanova University Beth Livingston, University of Florida Barbara Low, Dominican University Doyle Lucas, Anderson University Alexandra Luong, University of Minnesota Rick Maclin, Missouri Baptist University Peter Madsen, Brigham Young University Lou Marino, University of Alabama Catherine Marsh, Northpark University J. David Martin, Midwestern State University Timothy A. Matherly, Florida State University John Mattoon, State University of New York Paul Maxwell, Saint Thomas University Brenda McAleer, University of Maine at Augusta Christina McCale, Regis College Don McCormick, California State University Northridge James McElroy, Iowa State University Bonnie McNeely, Murray State University Melony Mead, University of Phoenix Steven Meisel, La Salle University Nancy Meyer-Emerick, Cleveland State University Catherine Michael, St. Edwards University Sandy Miles, Murray State University Janice Miller, University of Wisconsin at Milwaukee Leann Mischel, Susquehanna University Atul Mitra, University of Northern Iowa Linda Morable, Richland College Paula Morrow, Iowa State University Mark Mortensen, Massachusetts Institute of Technology Lori Muse, Western Michigan University Padmakumar Nair, University of Texas at Dallas Judy Nixon, University of Tennessee at Chattanooga Jeffrey Nystrom, University of Colorado at Denver Alison O’Brien, George Mason University Heather Odle-Dusseau, Clemson University Miguel Olivas-Lujan, Lujan Clarion University
  • 33. ACKNOWLEDGMENTS Kelly Ottman, University of Wisconsin at Milwaukee Cynthia Ozeki, California State University, Dominguez Hills Peg Padgett, Butler University Jennifer Palthe, Western Michigan University Dennis Passovoy, University of Texas at Austin Karen Paul, Florida International University Laura Finnerty Paul, Skidmore College Anette Pendergrass, Arkansas State University at Mountain Home Bryan Pesta, Cleveland State University Jeff Peterson, University of Washington Nanette Philibert, Missouri Southern State University Larry Phillips, Indiana University South Bend William Pinchuk, Rutgers University at Camden Eric Popkoff, Brooklyn College Paul Preston, University of Montevallo Scott Quatro, Grand Canyon University Aarti Ramaswami, Indiana University Bloomington Jere Ramsey, Cal Poly at San Luis Obispo Amy Randel, San Diego State University Anne Reilly, Loyola University Chicago Clint Relyea, Arkansas State University Herbert Ricardo, Indian River Community College David Ritchey, University of Texas at Dallas Chris Roberts, University of Massachusetts Amherst Sherry Robinson, Pennsylvania State University Hazleton Christopher Ann Robinson-Easley, Governors State University Joe Rode, Miami University Bob Roller, LeTourneau University Andrea Roofe, Florida International University Craig Russell, University of Oklahoma at Norman Manjula Salimath, University of North Texas Mary Saunders, Georgia Gwinnett College Andy Schaffer, North Georgia College and State University Elizabeth Scott, Elizabeth City University Mark Seabright, Western Oregon University Joseph Seltzer, LaSalle University John Shaw, Mississippi State University John Sherlock, Western Carolina University Daniel Sherman, University of Alabama, Huntsville Heather Shields, Texas Tech University xxxiii Ted Shore, California State University at Long Beach Stuart Sidle, University of New Haven Bret Simmons, University of Nevada Reno Randy Sleeth, Virginia Commonwealth University William Smith, Emporia State University Kenneth Solano, Northeastern University Shane Spiller, Morehead State University Lynda St. Clair, Bryant University John B. Stark, California State University, Bakersfield Merwyn Strate, Purdue University Joo-Seng Tan, Cornell University Karen Thompson, Sonoma State University Linda Tibbetts, Antioch University McGregor Ed Tomlinson, John Carroll University Bob Trodella, Webster University Tom Tudor, University of Arkansas at Little Rock William D. Tudor, Ohio State University Daniel Turban, University of Missouri Albert Turner, Webster University Jim Turner, Morehead State University Leslie Tworoger, Nova Southeastern University M. A. Viets, University of Vermont Roger Volkema, American University William Walker, University of Houston Ian Walsh, Boston College Charles F. Warren, Salem State College Christa Washington, Saint Augustine’s College Jim Westerman, Appalachian State University William J. White, Northwestern University David Whitlock, Southwest Baptist University Dan Wiljanen, Grand Valley State University Dean Williamson, Brewton-Parker College Hilda Williamson, Hampton University Alice Wilson, Cedar Crest College Barry Wisdom, Southeast Missouri State University Craig Wishart, Fayetteville State University Laura Wolfe, Louisiana State University Melody Wollan, Eastern Illinois University Evan Wood, Taylor University Fort Wayne Chun-Sheng Yu, University of HoustonVictoria Jun Zhao, Governors State University Lori Ziegler, University of Texas at Dallas Mary Ellen Zuckerman, State University of New York at Geneseo Gail Zwart, Riverside Community College
  • 34. xxxiv ACKNOWLEDGMENTS We owe a debt of gratitude to all those at Pearson Education who have supported this text over the past 30 years and who have worked so hard on the development of this latest edition. On the development and editorial side, we want to thank Elisa Adams, Development Editor; Steve Deitmer, Director of Development; Ashley Santora, Director of Editorial Services; Brian Mickelson, Acquisitions Editor; and Sally Yagan, Editorial Director. On the design and production side, Judy Leale, Senior Managing Editor, did an outstanding job, as did Becca Groves, Production Project Manager, and Nancy Moudry, Photo Development Editor. Last but not least, we would like to thank Nikki Ayana Jones, Senior Marketing Manager; Patrice Lumumba Jones, Vice President Director of Marketing; and their sales staff, who have been selling this book over its many editions. Thank you for the attention you’ve given to this book.
  • 35. Organizational Behavior
  • 36. THE NEW NORMAL? S LEARNING OBJECTIVES After studying this chapter, you should be able to: 1 2 3 4 5 6 7 8 Demonstrate the importance of interpersonal skills in the workplace. Describe the manager’s functions, roles, and skills. Define organizational behavior (OB). Show the value to OB of systematic study. Identify the major behavioral science disciplines that contribute to OB. Demonstrate why few absolutes apply to OB. Identify the challenges and opportunities managers have in applying OB concepts. Compare the three levels of analysis in this book’s OB model. MyManagementLab Access a host of interactive learning aids to help strengthen your understanding of the chapter concepts at www.mymanagementlab.com cott Nicholson sits alone in his parents’ house in suburban Boston. His parents have long since left for work. He lifts his laptop from a small table on which his mother used to have a vase with flowers. This day will be like tomorrow, and tomorrow will be like today. On his laptop, Scott searches corporate Web sites for job openings. Today, he finds one, and he mails off a résumé and cover letter. It’s a routine he repeats nearly every day, applying to four to five jobs a week, week after week. Despite graduating from Colgate University with a 4.0 GPA, Scott has been job-hunting for 5 months. His myriad applications have produced only one offer: A $40,000-a-year job as an associate claims adjuster at Hanover Insurance Group in Worcester. He turned the offer down. “The conversation I’m going to have with my parents now that I’ve turned down this job is more of a concern to me than turning down the job,” Scott said. Why is Scott more concerned with his parents’ reaction than he is with finding a job? To some degree, this is a reflection of the job offer (too low a salary, too small a company, too limited a job description). However, it also suggests a generational shift in thinking. While the job market for new entrants is perhaps the most sluggish in memory, new college graduates remain committed to following their dreams and holding out high hopes for their careers. Scott’s father, David Nicholson, 57, has an established managerial career, with a household income of $175,000/year. Early in his career, David said, he was less concerned with starting off with the right job than his son is now. “You maneuvered and you did not worry what the maneuvering would lead to,” David said. “You know it would lead to something good.” Scott’s grandfather, William Nicholson, a retired stock broker, has even more trouble understanding Scott’s travails. “I view what is happening to Scott with dismay,” the grandfather said. Despite feeling pressure from his parents to find a job (“I am beginning to realize that refusal is going to have repercussions”), Scott remains undaunted: “I am absolutely certain that my job hunt will eventually pay off.” Scott is not alone. In the past 5 years, millions of U.S. workers have lost their jobs, and millions of new entrants—many of them, like Scott, under 30— have had trouble finding suitable work. Sources: L. Uchitelle, “A New Generation, an Elusive American Dream” New York Times (July 7, 2010), pp. A1, A11; B. Levin, “Sending Out an S.O.S.: Who Will Give This a Handout/Job?” Dealbreaker (July 7, 2010), http://dealbreaker.com/tag/scott-nicholson/. 2
  • 37. What Is Organizational Behavior? 1 Photo: Scott Nicholson. Source: Matthew Cavanaugh/The New York Times/Redux Pictures The stellar universe is not so difficult of comprehension as the real actions of other people. —Marcel Proust 3
  • 38. 4 CHAPTER 1 What Is Organizational Behavior? T he details of this story might be disheartening to read, but they accurately reflect some of the problems faced by the contemporary workforce. The story also highlights several issues of interest to organizational behavior researchers, including motivation, emotions, personality, and communication. Through the course of this book, you’ll learn how all these elements can be studied systematically. You’ve probably made many observations about people’s behavior in your life. In a way, you are already proficient at seeing some of the major themes in organizational behavior. At the same time, you probably have not had the tools to make these observations systematically. This is where organizational behavior comes into play. And, as we’ll learn, it is much more than common sense, intuition, and soothsaying. To see how far common sense gets you, try the following from the SelfAssessment Library. S A L SELF-ASSESSMENT LIBRARY How Much Do I Know About Organizational Behavior? In the Self-Assessment Library (available on CD and online), take assessment IV.G.1 (How Much Do I Know About OB?) and answer the following questions: 1. How did you score? Are you surprised by your score? 2. How much of effective management do you think is common sense? Did your score on the test change your answer to this question? The Importance of Interpersonal Skills 1 Demonstrate the importance of interpersonal skills in the workplace. Until the late 1980s, business school curricula emphasized the technical aspects of management, focusing on economics, accounting, finance, and quantitative techniques. Course work in human behavior and people skills received relatively less attention. Over the past three decades, however, business faculty have come to realize the role that understanding human behavior plays in determining a manager’s effectiveness, and required courses on people skills have been added to many curricula. As the director of leadership at MIT’s Sloan School of Management put it, “M.B.A. students may get by on their technical and quantitative skills the first couple of years out of school. But soon, leadership and communication skills come to the fore in distinguishing the managers whose careers really take off.”1 Developing managers’ interpersonal skills also helps organizations attract and keep high-performing employees. Regardless of labor market conditions, outstanding employees are always in short supply.2 Companies known as good places to work—such as Starbucks, Adobe Systems, Cisco, Whole Foods, Google, American Express, Amgen, Pfizer, and Marriott—have a big advantage. A recent survey of hundreds of workplaces, and more than 200,000 respondents, showed the social relationships among co-workers and supervisors were strongly related to overall job satisfaction. Positive social relationships also were associated with lower stress at work and lower intentions to quit.3 So having managers with good interpersonal skills is likely to make the workplace more pleasant, which in turn makes it easier to hire and keep qualified people. Creating a pleasant workplace also appears to make good economic sense. Companies with reputations
  • 39. What Managers Do 5 Source: China Photos / Getty Images, Inc. Succeeding in management today requires good interpersonal skills. Communication and leadership skills distinguish managers such as John Chambers, who rise to the top of their profession. Chambers is CEO of Cisco Systems, the world’s largest maker of networking equipment. He is respected as a visionary leader and innovator who has the ability to drive an entrepreneurial culture. As an effective communicator, Chambers is described as warmhearted and straight talking. In this photo Chambers speaks during a launch ceremony of a green technology partnership Cisco formed with a university in China. as good places to work (such as Forbes’ “100 Best Companies to Work For in America”) have been found to generate superior financial performance.4 We have come to understand that in today’s competitive and demanding workplace, managers can’t succeed on their technical skills alone. They also have to have good people skills. This book has been written to help both managers and potential managers develop those people skills. What Managers Do 2 Describe the manager’s functions, roles, and skills. MyManagementLab For an interactive application of this topic, check out this chapter’s simulation activity at www.mymanagementlab.com. manager An individual who achieves goals through other people. Let’s begin by briefly defining the terms manager and organization—the place where managers work. Then let’s look at the manager’s job; specifically, what do managers do? Managers get things done through other people. They make decisions, allocate resources, and direct the activities of others to attain goals. Managers do their work in an organization, which is a consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals. By this definition, manufacturing and service firms are organizations, and so are schools, hospitals, churches, military units, retail stores, police departments, and local, state, and federal government agencies. The people who oversee the activities of organization A consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals.
  • 40. 6 CHAPTER 1 What Is Organizational Behavior? others and who are responsible for attaining goals in these organizations are managers (sometimes called administrators, especially in not-for-profit organizations). Management Functions In the early part of the twentieth century, French industrialist Henri Fayol wrote that all managers perform five management functions: planning, organizing, commanding, coordinating, and controlling.5 Today, we have condensed these to four: planning, organizing, leading, and controlling. Because organizations exist to achieve goals, someone has to define those goals and the means for achieving them; management is that someone. The planning function encompasses defining an organization’s goals, establishing an overall strategy for achieving those goals, and developing a comprehensive set of plans to integrate and coordinate activities. Evidence indicates this function increases the most as managers move from lower-level to mid-level management.6 Managers are also responsible for designing an organization’s structure. We call this function organizing. It includes determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made. Every organization contains people, and it is management’s job to direct and coordinate those people. This is the leading function. When managers motivate employees, direct their activities, select the most effective communication channels, or resolve conflicts among members, they’re engaging in leading. To ensure things are going as they should, management must monitor the organization’s performance and compare it with previously set goals. If there are any significant deviations, it is management’s job to get the organization back on track. This monitoring, comparing, and potential correcting is the controlling function. So, using the functional approach, the answer to the question “What do managers do?” is that they plan, organize, lead, and control. Management Roles In the late 1960s, Henry Mintzberg, then a graduate student at MIT, undertook a careful study of five executives to determine what they did on their jobs. On the basis of his observations, Mintzberg concluded that managers perform ten different, highly interrelated roles—or sets of behaviors.7 As shown in Exhibit 1-1, these ten roles are primarily (1) interpersonal, (2) informational, or (3) decisional. Interpersonal Roles All managers are required to perform duties that are ceremonial and symbolic in nature. For instance, when the president of a college hands out diplomas at commencement or a factory supervisor gives a group of high school students a tour of the plant, he or she is acting in a figurehead role. All managers also have a leadership role. This role includes hiring, training, motivating, and disciplining employees. The third role within the interpersonal grouping is the liaison role, or contacting others who provide the manager with information. The sales manager who obtains information from the quality-control manager in his or her own company has an internal liaison relationship. When that sales manager has contacts with other sales executives through a marketing trade association, he or she has an outside liaison relationship.
  • 41. What Managers Do Exhibit 1-1 Role 7 Minztberg’s Managerial Roles Description Interpersonal Figurehead Leader Liaison Symbolic head; required to perform a number of routine duties of a legal or social nature Responsible for the motivation and direction of employees Maintains a network of outside contacts who provide favors and information Informational Monitor Disseminator Spokesperson Receives a wide variety of information; serves as nerve center of internal and external information of the organization Transmits information received from outsiders or from other employees to members of the organization Transmits information to outsiders on organization’s plans, policies, actions, and results; serves as expert on organization’s industry Decisional Entrepreneur Disturbance handler Resource allocator Negotiator Searches organization and its environment for opportunities and initiates projects to bring about change Responsible for corrective action when organization faces important, unexpected disturbances Makes or approves significant organizational decisions Responsible for representing the organization at major negotiations Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973 by H. Mintzberg. MINTZBERG, HENRY, THE NATURE OF MANAGERIAL WORK, 1st Edition, © 1980, pp. 92–93. Reprinted with permission of Pearson Education, Inc., Upper Saddle River, NJ. Informational Roles All managers, to some degree, collect information from outside organizations and institutions, typically by scanning the news media (including the Internet) and talking with other people to learn of changes in the public’s tastes, what competitors may be planning, and the like. Mintzberg called this the monitor role. Managers also act as a conduit to transmit information to organizational members. This is the disseminator role. In addition, managers perform a spokesperson role when they represent the organization to outsiders. Decisional Roles Mintzberg identified four roles that require making choices. In the entrepreneur role, managers initiate and oversee new projects that will improve their organization’s performance. As disturbance handlers, managers take corrective action in response to unforeseen problems. As resource allocators, planning A process that includes defining goals, establishing strategy, and developing plans to coordinate activities. organizing Determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made. leading A function that includes motivating employees, directing others, selecting the most effective communication channels, and resolving conflicts. controlling Monitoring activities to ensure they are being accomplished as planned and correcting any significant deviations.
  • 42. 8 CHAPTER 1 What Is Organizational Behavior? managers are responsible for allocating human, physical, and monetary resources. Finally, managers perform a negotiator role, in which they discuss issues and bargain with other units to gain advantages for their own unit. Management Skills Still another way of considering what managers do is to look at the skills or competencies they need to achieve their goals. Researchers have identified a number of skills that differentiate effective from ineffective managers.8 Technical Skills Technical skills encompass the ability to apply specialized knowledge or expertise. When you think of the skills of professionals such as civil engineers or oral surgeons, you typically focus on the technical skills they have learned through extensive formal education. Of course, professionals don’t have a monopoly on technical skills, and not all technical skills have to be learned in schools or other formal training programs. All jobs require some specialized expertise, and many people develop their technical skills on the job. Human Skills The ability to understand, communicate with, motivate, and support other people, both individually and in groups, defines human skills. Many people are technically proficient but poor listeners, unable to understand the needs of others, or weak at managing conflicts. Because managers get things done through other people, they must have good human skills. Conceptual Skills Managers must have the mental ability to analyze and diagnose complex situations. These tasks require conceptual skills. Decision making, for instance, requires managers to identify problems, develop alternative solutions to correct those problems, evaluate those alternative solutions, and select the best one. After they have selected a course of action, managers must be able to organize a plan of action and then execute it. The ability to integrate new ideas with existing processes and innovate on the job are also crucial conceptual skills for today’s managers. Effective versus Successful Managerial Activities Fred Luthans and his associates looked at what managers do from a somewhat different perspective.9 They asked, “Do managers who move up the quickest in an organization do the same activities and with the same emphasis as managers who do the best job?” You might think the answer is yes, but that’s not always the case. Luthans and his associates studied more than 450 managers. All engaged in four managerial activities: 1. Traditional management. Decision making, planning, and controlling. 2. Communication. Exchanging routine information and processing paperwork. 3. Human resource management. Motivating, disciplining, managing conflict, staffing, and training. 4. Networking. Socializing, politicking, and interacting with outsiders. The “average” manager spent 32 percent of his or her time in traditional management activities, 29 percent communicating, 20 percent in human resource management activities, and 19 percent networking. However, the time and effort different individual managers spent on those activities varied a great deal. As shown in Exhibit 1-2, among managers who were successful (defined in terms of speed of promotion within their organization), networking made
  • 43. What Managers Do Exhibit 1-2 Allocation of Activities by Time Average managers Successful managers Effective managers 11% 13% 19% 32% 48% 20% 9 29% 28% 19% 26% 44% 11% Traditional management Communication Human resource management Networking Source: Based on F. Luthans, R. M. Hodgetts, and S. A. Rosenkrantz, Real Managers (Cambridge, MA: Ballinger, 1988). the largest relative contribution to success, and human resource management activities made the least relative contribution. Among effective managers (defined in terms of quantity and quality of their performance and the satisfaction and commitment of employees), communication made the largest relative contribution and networking the least. More recent studies in Australia, Israel, Italy, Japan, and the United States confirm the link between networking and social relationships and success within an organization.10 And the connection between communication and effective managers is also clear. A study of 410 U.S. managers indicates those who seek information from colleagues and employees—even if it’s negative—and who explain their decisions are the most effective.11 This research offers important insights. Successful managers give almost the opposite emphases to traditional management, communication, human resource management, and networking as do effective managers. This finding challenges the historical assumption that promotions are based on performance, and it illustrates the importance of networking and political skills in getting ahead in organizations. A Review of the Manager’s Job One common thread runs through the functions, roles, skills, activities, and approaches to management: Each recognizes the paramount importance of managing people, whether it is called “the leading function,” “interpersonal roles,” “human skills,” or “human resource management, communication, and networking activities.” It’s clear managers must develop their people skills to be effective and successful. technical skills The ability to apply specialized knowledge or expertise. human skills The ability to work conceptual skills The mental ability with, understand, and motivate other people, both individually and in groups. to analyze and diagnose complex situations.
  • 44. 10 CHAPTER 1 What Is Organizational Behavior? Enter Organizational Behavior Define organizational behavior (OB). Online shoe retailer Zappos.com understands how organizational behavior affects an organization’s performance. Zappos maintains good employee relationships by providing generous benefits, extensive customer service training, and a positive, fun-loving work environment. Employees are empowered to make decisions that increase customer satisfaction and are encouraged to create fun and a little weirdness.” At Zappos, employee loyalty, job satisfaction, and productivity are high, contributing to the company’s growth. In this photo, employees view a line of shoes in one of the company’s quirky offices. We’ve made the case for the importance of people skills. But neither this book nor the discipline on which it is based is called “people skills.” The term that is widely used to describe the discipline is organizational behavior. Organizational behavior (often abbreviated OB) is a field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness. That’s a mouthful, so let’s break it down. Organizational behavior is a field of study, meaning that it is a distinct area of expertise with a common body of knowledge. What does it study? It studies three determinants of behavior in organizations: individuals, groups, and structure. In addition, OB applies the knowledge gained about individuals, groups, and the effect of structure on behavior in order to make organizations work more effectively. To sum up our definition, OB is the study of what people do in an organization and how their behavior affects the organization’s performance. And because OB is concerned specifically with employment-related situations, you should not be surprised that it emphasizes behavior as related to concerns such as jobs, work, absenteeism, employment turnover, productivity, human performance, and management. Although debate exists about the relative importance of each, OB includes the core topics of motivation, leader behavior and power, interpersonal communication, group structure and processes, learning, attitude development and perception, change processes, conflict, work design, and work stress.12 Source: Isaac Brekken/The New York Times/Redux Pictures 3
  • 45. Complementing Intuition with Systematic Study 11 Complementing Intuition with Systematic Study 4 Show the value to OB of systematic study. organizational behavior (OB) A field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness. Each of us is a student of behavior. Whether you’ve explicitly thought about it before, you’ve been “reading” people almost all your life, watching their actions and trying to interpret what you see or predict what people might do under different conditions. Unfortunately, the casual or common sense approach to reading others can often lead to erroneous predictions. However, you can improve your predictive ability by supplementing intuition with a more systematic approach. The systematic approach in this book will uncover important facts and relationships and provide a base from which to make more accurate predictions of behavior. Underlying this systematic approach is the belief that behavior is not random. Rather, we can identify fundamental consistencies underlying the behavior of all individuals and modify them to reflect individual differences. These fundamental consistencies are very important. Why? Because they allow predictability. Behavior is generally predictable, and the systematic study of behavior is a means to making reasonably accurate predictions. When we use the term systematic study, we mean looking at relationships, attempting to attribute causes and effects, and basing our conclusions on scientific evidence—that is, on data gathered under controlled conditions and measured and interpreted in a reasonably rigorous manner. (See Appendix A for a basic review of research methods used in studies of organizational behavior.) Evidence-based management (EBM) complements systematic study by basing managerial decisions on the best available scientific evidence. For example, we want doctors to make decisions about patient care based on the latest available evidence, and EBM argues that managers should do the same, becoming more scientific in how they think about management problems. A manager might pose a managerial question, search for the best available evidence, and apply the relevant information to the question or case at hand. You might think it difficult to argue against this (what manager would say decisions shouldn’t be based on evidence?), but the vast majority of management decisions are still made “on the fly,” with little or systematic study of available evidence.13 Systematic study and EBM add to intuition, or those “gut feelings” about what makes others (and ourselves) “tick.” Of course, the things you have come to believe in an unsystematic way are not necessarily incorrect. Jack Welch (former CEO of GE) noted, “The trick, of course, is to know when to go with your gut.” But if we make all decisions with intuition or gut instinct, we’re likely working with incomplete information—like making an investment decision with only half the data. Relying on intuition is made worse because we tend to overestimate the accuracy of what we think we know. In a recent survey, 86 percent of managers thought their organization was treating their employees well, but only 55 percent of the employees thought so. Surveys of human resource managers have also systematic study Looking at relationships, attempting to attribute causes and effects, and drawing conclusions based on scientific evidence. evidence-based management (EBM) The basing of managerial decisions on the best available scientific evidence. intuition A gut feeling not necessarily supported by research.
  • 46. CHAPTER 1 12 What Is Organizational Behavior? Myth or Science? “Most Acts of Workplace Bullying Are Men Attacking Women” T his statement is true in the broad sense that most research indicates men are more likely to engage in workplace bullying, and women are more likely to be targets of bullying behavior. However, the full picture of gender and workplace bullying is more complicated than that. First, the gender differences are narrowing. A recent study of workplace bullying by the Workplace Bullying Institute (WBI) suggested that 60 percent of workplace bullies are men and 40 percent are women. That is still a significant gender difference. But it is not as large as was once the case. Some of the narrowing in the gender of bullies is due to the ascension of women up their organizations’ ladders. Evidence indicates that the vast majority of incidents of workplace bullying are “topdown”: the supervisor is intimidating the subordinate. As more women are becoming supervisors, this is changing, to some degree, the gender balance of workplace bullies. A second complication is that when women bully others at work, other women are overwhelmingly their targets. The same WBI study of workplace bullying revealed that 58 percent of victims of bullying are women. However, almost all of this gender difference in victims is due to who women bullies target; in 80 percent of the cases, it was other women. Male bullies are actually more likely to target their own sex, though to a less dramatic degree than female bullies do. Finally, it does appear that women are more adversely affected by bullying. A recent study of 183 victims of bullying found that the prevalence of trauma was higher for women (49 percent) than men (35 percent). The complexity of these relationships shows us that gaining a true understanding of organizational behavior phenomena often means understanding that the causes and consequences of work behavior are complex. Back to bullying, experts suggest some ways to cope with workplace bullies regardless of your sex. 1. Talk to your bully. “Perhaps your boss is one of those people who aren’t aware of how they come across,” says Stanford’s Robert Sutton, author of several books on bullying in the workplace. 2. Get help. Keep a diary of the behavior. Be specific and focus more on actions than feelings. At some point, it might be necessary to involve others, such as human resources. 3. Ignore it. This is often easier said than done, but sometimes the only thing you can do is to try to ignore the bully. “Try not to let it touch your soul,” says Sutton. 4. Polish your résumé. Bullies sometimes go away, and sometimes they listen. But if they aren’t going to change and aren’t going away, you may want to plan your exit strategy. Take your time and don’t panic. But not every workplace is filled with bullies, and you’ll likely be happier if you’re in one of those. Source: L. Petrecca, “Bullying in Workplace Is Common, Hard to Fix, USA Today (De” cember 28, 2010), pp. 1B–2B; R. I. Sutton, Good Boss, Bad Boss: How to Be the Best ... and Learn from the Worst (New York: Business Plus, 2010); A. RodríguezMuñoz, B. Moreno-Jiménez, A. Vergel, and E. G. Hernández, “Post-Traumatic Symptoms Among Victims of Workplace Bullying: Exploring Gender Differences and Shattered Assumptions, Journal of Applied Social ” Psychology 40, no. 10 (2010), pp. 2616–2635. shown many managers hold “common sense” opinions regarding effective management that have been flatly refuted by empirical evidence. We find a similar problem in chasing the business and popular media for management wisdom. The business press tends to be dominated by fads. As a writer for The New Yorker put it, “Every few years, new companies succeed, and they are scrutinized for the underlying truths they might reveal. But often there is no underlying truth; the companies just happened to be in the right place at the right time.”14 Although we try to avoid it, we might also fall into this trap. It’s not that the business press stories are all wrong; it’s that without a systematic approach, it’s hard to separate the wheat from the chaff. We’re not advising that you throw your intuition, or all the business press, out the window. Nor are we arguing that research is always right.
  • 47. Disciplines That Contribute to the OB Field 13 Researchers make mistakes, too. What we are advising is to use evidence as much as possible to inform your intuition and experience. That is the promise of OB. Disciplines That Contribute to the OB Field 5 Identify the major behavioral science disciplines that contribute to OB. Organizational behavior is an applied behavioral science built on contributions from a number of behavioral disciplines, mainly psychology and social psychology, sociology, and anthropology. Psychology’s contributions have been mainly at the individual or micro level of analysis, while the other disciplines have contributed to our understanding of macro concepts such as group processes and organization. Exhibit 1-3 is an overview of the major contributions to the study of organizational behavior. Exhibit 1-3 Behavioral science Psychology Social psychology Toward an OB Discipline Contribution Learning Motivation Personality Emotions Perception Training Leadership effectiveness Job satisfaction Individual decision making Performance appraisal Attitude measurement Employee selection Work design Work stress Output Individual Behavioral change Attitude change Communication Group processes Group decision making Communication Power Conflict Intergroup behavior Sociology Unit of analysis Group Formal organization theory Organizational technology Organizational change Organizational culture Comparative values Comparative attitudes Cross-cultural analysis Anthropology Organizational culture Organizational environment Power Organization system Study of organizational behavior
  • 48. 14 CHAPTER 1 What Is Organizational Behavior? Psychology Psychology seeks to measure, explain, and sometimes change the behavior of humans and other animals. Those who have contributed and continue to add to the knowledge of OB are learning theorists, personality theorists, counseling psychologists, and, most important, industrial and organizational psychologists. Early industrial/organizational psychologists studied the problems of fatigue, boredom, and other working conditions that could impede efficient work performance. More recently, their contributions have expanded to include learning, perception, personality, emotions, training, leadership effectiveness, needs and motivational forces, job satisfaction, decision-making processes, performance appraisals, attitude measurement, employee-selection techniques, work design, and job stress. Social Psychology Social psychology, generally considered a branch of psychology, blends concepts from both psychology and sociology to focus on peoples’ influence on one another. One major study area is change—how to implement it and how to reduce barriers to its acceptance. Social psychologists also contribute to measuring, understanding, and changing attitudes; identifying communication patterns; and building trust. Finally, they have made important contributions to our study of group behavior, power, and conflict. Sociology While psychology focuses on the individual, sociology studies people in relation to their social environment or culture. Sociologists have contributed to OB through their study of group behavior in organizations, particularly formal and complex organizations. Perhaps most important, sociologists have studied organizational culture, formal organization theory and structure, organizational technology, communications, power, and conflict. Anthropology Anthropology is the study of societies to learn about human beings and their activities. Anthropologists’ work on cultures and environments has helped us understand differences in fundamental values, attitudes, and behavior between people in different countries and within different organizations. Much of our current understanding of organizational culture, organizational environments, and differences among national cultures is a result of the work of anthropologists or those using their methods. There Are Few Absolutes in OB 6 Demonstrate why few absolutes apply to OB. Laws in the physical sciences—chemistry, astronomy, physics—are consistent and apply in a wide range of situations. They allow scientists to generalize about the pull of gravity or to be confident about sending astronauts into space to repair satellites. But as a noted behavioral researcher observed, “God gave all the easy problems to the physicists.” Human beings are complex, and few, if any, simple and universal principles explain organizational behavior. Because we are not alike, our ability to make simple, accurate, and sweeping generalizations is limited.
  • 49. Challenges and Opportunities for OB 15 Two people often act very differently in the same situation, and the same person’s behavior changes in different situations. Not everyone is motivated by money, and people may behave differently at a religious service than they do at a party. That doesn’t mean, of course, that we can’t offer reasonably accurate explanations of human behavior or make valid predictions. It does mean that OB concepts must reflect situational, or contingency, conditions. We can say x leads to y, but only under conditions specified in z—the contingency variables. The science of OB was developed by applying general concepts to a particular situation, person, or group. For example, OB scholars would avoid stating that everyone likes complex and challenging work (the general concept). Why? Because not everyone wants a challenging job. Some people prefer routine over varied, or simple over complex. A job attractive to one person may not be to another; its appeal is contingent on the person who holds it. As you proceed through this book, you’ll encounter a wealth of researchbased theories about how people behave in organizations. But don’t expect to find a lot of straightforward cause-and-effect relationships. There aren’t many! organizational behavior theories mirror the subject matter with which they deal, and people are complex and complicated. Challenges and Opportunities for OB 7 Identify the challenges and opportunities managers have in applying OB concepts. Understanding organizational behavior has never been more important for managers. Take a quick look at the dramatic changes in organizations. The typical employee is getting older; more women and people of color are in the workplace; corporate downsizing and the heavy use of temporary workers are severing the bonds of loyalty that tied many employees to their employers; global competition requires employees to become more flexible and cope with rapid change. The global recession has brought to the forefront the challenges of working with and managing people during uncertain times. In short, today’s challenges bring opportunities for managers to use OB concepts. In this section, we review some of the most critical issues confronting managers for which OB offers solutions—or at least meaningful insights toward solutions. Responding to Economic Pressures When the U.S. economy plunged into a deep and prolonged recession in 2008, virtually all other large economies around the world followed suit. Layoffs and job losses were widespread, and those who survived the ax were often asked to accept pay cuts. During difficult economic times, effective management is often at a premium. Anybody can run a company when business is booming, because the difference psychology The science that seeks to measure, explain, and sometimes change the behavior of humans and other animals. social psychology An area of psychology that blends concepts from psychology and sociology and that focuses on the influence of people on one another. sociology The study of people in relation to their social environment or culture. anthropology The study of societies to learn about human beings and their activities. contingency variables Situational factors: variables that moderate the relationship between two or more variables.
  • 50. 16 CHAPTER 1 What Is Organizational Behavior? OB Poll Working in Good Times—and Bad “Thinking about the job situation in America today, would you say that it is now a good time or a bad time to find a quality job?” 100 90 Bad 80 89 86 8 2010 11 Good 86 69 70 60 59 57 54 48 50 40 30 39 38 41 47 20 26 20 10 0 2004 2005 2006 2007 2008 2009 2011 Source: Gallup tracking polls of random samples of roughly 1,000 adults, aged 18 and older, living in the continental U.S., selected using random-digit telephone sampling. See F. Newport, “Americans’ Views of Job Market Improve; Still Mostly Negative” (April 18, 2011), www.gallup.com. between good and bad management reflects the difference between making a lot of money and making a lot more money. When times are bad, though, managers are on the front lines with employees who must be fired, who are asked to make do with less, and who worry about their futures. The difference between good and bad management can be the difference between profit and loss or, ultimately, between survival and failure. Consider Enterprise Rent-A-Car. The company prided itself on never having laid off a U.S. employee in its 51-year history. Even in the 2001–2002 recession after the 9/11 terrorist attacks, Enterprise kept hiring. In 2008–2009, however, Enterprise was forced to lay off more than a thousand employees. “These types of declines are unprecedented,” said Patrick Farrell, Enterprise’s vice president of corporate responsibility. Gentex Corp, a Michigan-based auto parts supplier, had never had a layoff in its 34-year history—until 2008–2009. “We didn’t even have a layoff policy,” said Gentex’s vice president of human resources.15 Managing employees well when times are tough is just as hard as when times are good—if not more so. But the OB approaches sometimes differ. In good times, understanding how to reward, satisfy, and retain employees is at a premium. In bad times, issues like stress, decision making, and coping come to the fore. Responding to Globalization Organizations are no longer constrained by national borders. Burger King is owned by a British firm, and McDonald’s sells hamburgers in Moscow. ExxonMobil, a so-called U.S. company, receives almost 75 percent of its revenues from sales outside the United States. New employees at Finland-based phone maker Nokia are increasingly being recruited from India, China, and other developing countries—non-Finns now outnumber Finns at Nokia’s renowned research center in Helsinki. And all major automobile makers now manufacture cars outside their borders; Honda builds cars in Ohio, Ford in Brazil, Volkswagen in Mexico, and both Mercedes and BMW in South Africa. The world has become a global village. In the process, the manager’s job has changed.
  • 51. Challenges and Opportunities for OB 17 Increased Foreign Assignments If you’re a manager, you are increasingly likely to find yourself in a foreign assignment—transferred to your employer’s operating division or subsidiary in another country. Once there, you’ll have to manage a workforce very different in needs, aspirations, and attitudes from those you are used to back home. Working with People from Different Cultures Even in your own country, you’ll find yourself working with bosses, peers, and other employees born and raised in different cultures. What motivates you may not motivate them. Or your communication style may be straightforward and open, which others may find uncomfortable and threatening. To work effectively with people from different cultures, you need to understand how their culture, geography, and religion have shaped them and how to adapt your management style to their differences. Managers at global companies such as McDonald’s, Disney, and Coca-Cola have come to realize that economic values are not universally transferable. Management practices need to be modified to reflect the values of the different countries in which an organization operates. In the global economy, jobs tend to shift from developed nations to countries where lower labor costs give firms a comparative advantage. In this photo, an employee wearing a sign on his head reading “Capital Interests” joins co-workers at a Nokia factory in Germany to protest the company’s decision of terminating mobile phone production at the plant, resulting in the loss of 2,300 jobs. Nokia announced plans to shift production from Germany to Romania, where labor costs are lower. Source: Henning Kaiser/Getty Images Overseeing Movement of Jobs to Countries with Low-Cost Labor It’s increasingly difficult for managers in advanced nations, where minimum wages are typically $6 or more an hour, to compete against firms that rely on workers from China and other developing nations where labor is available for 30 cents an hour. It’s not by chance that many in the United States wear clothes made in China, work on computers whose microchips came from Taiwan, and watch movies filmed in Canada. In a global economy, jobs tend to flow where lower costs give businesses a comparative advantage, though labor groups, politicians, and local community leaders see the exporting of jobs as undermining the job market at home. Managers face the difficult task of balancing the interests of their organization with their responsibilities to the communities in which they operate.
  • 52. 18 CHAPTER 1 What Is Organizational Behavior? Managing Workforce Diversity One of the most important challenges for organizations is adapting to people who are different. We describe this challenge as workforce diversity. Whereas globalization focuses on differences among people from different countries, workforce diversity addresses differences among people within given countries. Workforce diversity acknowledges a workforce of women and men; many racial and ethnic groups; individuals with a variety of physical or psychological abilities; and people who differ in age and sexual orientation. Managing this diversity is a global concern. Most European countries have experienced dramatic growth in immigration from the Middle East, Argentina and Venezuela host a significant number of migrants from other South American countries, and nations from India to Iraq to Indonesia find great cultural diversity within their borders. The most significant change in the U.S. labor force during the last half of the twentieth century was the rapid increase in the number of female workers. In 1950, for instance, only 29.6 percent of the workforce was female. By 2008, it was 46.5 percent. The first half of the twenty-first century will be notable for changes in racial and ethnic composition and an aging baby boom generation. By 2050, Hispanics will grow from today’s 11 percent of the workforce to 24 percent, blacks will increase from 12 to 14 percent, and Asians from 5 to 11 percent. Meanwhile, in the near term the labor force will be aging. The 55-and-older age group, currently 13 percent of the labor force, will increase to 20 percent by 2014. Though we have more to say about workforce diversity in the next chapter, suffice it to say here that it presents great opportunities and poses challenging questions for managers and employees in all countries. How can we leverage differences within groups for competitive advantage? Should we treat all employees alike? Should we recognize individual and cultural differences? How can we foster cultural awareness in employees without lapsing into political correctness? What are the legal requirements in each country? Does diversity even matter? Improving Customer Service American Express recently turned Joan Weinbel’s worst nightmare into a nonevent. It was 10:00 p.m. Joan was home in New Jersey, packing for a weeklong trip, when she suddenly realized she had left her AmEx Gold card at a restaurant in New York City earlier in the evening. The restaurant was 30 miles away. She had a flight to catch at 7:30 the next morning, and she wanted her card for the trip. She called American Express. The phone was quickly answered by a courteous and helpful AmEx customer service representative who told Ms. Weinbel not to worry. He asked her a few questions and told her, “Help is on the way.” To say Joan was flabbergasted when her doorbell rang at 11:45 p.m. is an understatement—it was less than 2 hours after her call. At the door was a courier with a new card. How the company was able to produce the card and get it to her so quickly still puzzles Joan, but she said the experience made her a customer for life. Today, the majority of employees in developed countries work in service jobs, including 80 percent in the United States. In Australia, 73 percent work in service industries. In the United Kingdom, Germany, and Japan, the percentages are 69, 68, and 65, respectively. Service jobs include technical support representatives, fast-food counter workers, sales clerks, waiters and waitresses, nurses, automobile repair technicians, consultants, credit representatives, financial planners, and flight attendants. The common characteristic of these jobs is substantial interaction with an organization’s customers. And because an organization can’t exist without customers—whether it is American
  • 53. Challenges and Opportunities for OB 19 Source: ITAR - TASS / Anton Tushin / Newscom The Ritz Carlton Hotel Company is recognized worldwide as the gold standard of the hospitality industry. Its motto—“We are ladies and gentlemen serving ladies and gentlemen”—is exemplified by the employee shown here serving a guest on the summer terrace of the Ritz-Carlton Moscow. The Ritz-Carlton’s customer-responsive culture, which is articulated in the company’s motto, credo, and service values, is designed to build strong relationships that create guests for life. Express, L. L. Bean, a law firm, a museum, a school, or a government agency— management needs to ensure employees do what it takes to please customers.16 At Patagonia—a retail outfitter for climbers, mountain bikers, skiers and boarders, and other outdoor fanatics—customer service is the store manager’s most important general responsibility: “Instill in your employees the meaning and importance of customer service as outlined in the retail philosophy, ‘Our store is a place where the word “no” does not exist’; empower staff to ‘use their best judgment’ in all customer service matters.”17 OB can help managers at Patagonia achieve this goal and, more generally, can contribute to improving an organization’s performance by showing managers how employee attitudes and behavior are associated with customer satisfaction. Many an organization has failed because its employees failed to please customers. Management needs to create a customer-responsive culture. OB can provide considerable guidance in helping managers create such cultures—in which employees are friendly and courteous, accessible, knowledgeable, prompt in responding to customer needs, and willing to do what’s necessary to please the customer.18 Improving People Skills As you proceed through the chapters of this book, we’ll present relevant concepts and theories that can help you explain and predict the behavior of people at work. In addition, you’ll gain insights into specific people skills that you workforce diversity The concept that organizations are becoming more heterogeneous in terms of gender, age, race, ethnicity, sexual orientation, and inclusion of other diverse groups.
  • 54. 20 CHAPTER 1 What Is Organizational Behavior? can use on the job. For instance, you’ll learn ways to design motivating jobs, techniques for improving your listening skills, and how to create more effective teams. Stimulating Innovation and Change Whatever happened to Montgomery Ward, Woolworth, Smith Corona, TWA, Bethlehem Steel, and WorldCom? All these giants went bust. Why have other giants, such as General Motors, Sears, Boeing, and Lucent Technologies, implemented huge cost-cutting programs and eliminated thousands of jobs? The answer is to avoid going broke. Today’s successful organizations must foster innovation and master the art of change, or they’ll become candidates for extinction. Victory will go to the organizations that maintain their flexibility, continually improve their quality, and beat their competition to the marketplace with a constant stream of innovative products and services. Domino’s single-handedly brought on the demise of small pizza parlors whose managers thought they could continue doing what they had been doing for years. Amazon.com is putting a lot of independent bookstores out of business as it proves you can successfully sell books (and most anything else) from a Web site. After years of lackluster performance, Boeing realized it needed to change its business model. The result was its 787 Dreamliner and a return to being the world’s largest airplane manufacturer. An organization’s employees can be the impetus for innovation and change, or they can be a major stumbling block. The challenge for managers is to stimulate their employees’ creativity and tolerance for change. The field of OB provides a wealth of ideas and techniques to aid in realizing these goals. Coping with “Temporariness” Globalization, expanded capacity, and advances in technology have required organizations to be fast and flexible if they are to survive. The result is that most managers and employees today work in a climate best characterized as “temporary.” Workers must continually update their knowledge and skills to perform new job requirements. Production employees at companies such as Caterpillar, Ford, and Alcoa now need to operate computerized production equipment. That was not part of their job descriptions 20 years ago. In the past, employees were assigned to a specific work group, gaining a considerable amount of security working with the same people day in and day out. That predictability has been replaced by temporary work groups, with members from different departments, and the increased use of employee rotation to fill constantly changing work assignments. Finally, organizations themselves are in a state of flux. They continually reorganize their various divisions, sell off poorly performing businesses, downsize operations, subcontract noncritical services and operations to other organizations, and replace permanent employees with temporary workers. Today’s managers and employees must learn to cope with temporariness, flexibility, spontaneity, and unpredictability. The study of OB can help you better understand a work world of continual change, overcome resistance to change, and create an organizational culture that thrives on change. Working in Networked Organizations Networked organizations allow people to communicate and work together even though they may be thousands of miles apart. Independent contractors can telecommute via computer to workplaces around the globe and change employers as the demand for their services changes. Software programmers, graphic designers, systems analysts, technical writers, photo researchers, book
  • 55. Challenges and Opportunities for OB 21 Source: AP Photo/Emilio Morenatti Dr. Orit Wimpfheimer performs her job by linking to others through networks. Shown here at her home office near Jerusalem, Israel, she is a radiologist who analyzes test results from hospitals in the United States over the Internet. Networked organizations that use e-mail, the Internet, and video-conferencing allow Dr. Orit Wimpfheimer and other telecommuters to communicate and work together even though they are thousands of miles apart. The manager’s job in a networked organization requires different techniques from those used when workers are physically present in a single location. and media editors, and medical transcribers are just a few examples of people who can work from home or other nonoffice locations. The manager’s job is different in a networked organization. Motivating and leading people and making collaborative decisions online requires different techniques than when individuals are physically present in a single location. As more employees do their jobs by linking to others through networks, managers must develop new skills. OB can provide valuable insights to help with honing those skills. Helping Employees Balance Work–Life Conflicts The typical employee in the 1960s or 1970s showed up at a specified workplace Monday through Friday and worked for clearly defined 8- or 9-hour chunks of time. That’s no longer true for a large segment of today’s workforce. Employees are increasingly complaining that the line between work and nonwork time has become blurred, creating personal conflicts and stress.19 At the same time, today’s workplace presents opportunities for workers to create and structure their own roles. How do work–life conflicts come about? First, the creation of global organizations means the world never sleeps. At any time on any day, thousands of General Electric employees are working somewhere. The need to consult with colleagues or customers eight or ten time zones away means many employees of global firms are “on call” 24 hours a day. Second, communication technology allows many technical and professional employees to do their work at home, in their cars, or on the beach in Tahiti—but it also means many feel like they never really get away from the office. Third, organizations are asking employees to put in longer hours. Over a recent 10-year period, the average U.S. workweek increased from 43 to 47 hours; and the number of people working 50 or more hours a week jumped from 24 to 37 percent. Finally, the rise of the dual-career couple makes it difficult for married employees to find time to fulfill commitments to home, spouse, children, parents, and friends. Millions of single-parent households and employees with dependent parents have even more significant challenges in balancing work and family responsibilities.
  • 56. 22 CHAPTER 1 What Is Organizational Behavior? Employees increasingly recognize that work infringes on their personal lives, and they’re not happy about it. Recent studies suggest employees want jobs that give them flexibility in their work schedules so they can better manage work–life conflicts.20 In fact, balancing work and life demands now surpasses job security as an employee priority.21 The next generation of employees is likely to show similar concerns.22 Most college and university students say attaining a balance between personal life and work is a primary career goal; they want “a life” as well as a job. Organizations that don’t help their people achieve work–life balance will find it increasingly difficult to attract and retain the most capable and motivated employees. As you’ll see in later chapters, the field of OB offers a number of suggestions to guide managers in designing workplaces and jobs that can help employees deal with work–life conflicts. Creating a Positive Work Environment Although competitive pressures on most organizations are stronger than ever, some organizations are trying to realize a competitive advantage by fostering a positive work environment. Jeff Immelt and Jim McNerney, both disciples of Jack Welch, have tried to maintain high-performance expectations (a characteristic of GE’s culture) while fostering a positive work environment in their organizations (GE and Boeing). “In this time of turmoil and cynicism about business, you need to be passionate, positive leaders,” Mr. Immelt recently told his top managers. A real growth area in OB research is positive organizational scholarship (also called positive organizational behavior), which studies how organizations develop human strengths, foster vitality and resilience, and unlock potential. Researchers in this area say too much of OB research and management practice has been targeted toward identifying what’s wrong with organizations and their employees. In response, they try to study what’s good about them.23 Some key independent variables in positive OB research are engagement, hope, optimism, and resilience in the face of strain. Positive organizational scholars have studied a concept called “reflected best-self”—asking employees to think about when they were at their “personal best” in order to understand how to exploit their strengths. The idea is that we all have things at which we are unusually good, yet too often we focus on addressing our limitations and too rarely think about how to exploit our strengths.24 Although positive organizational scholarship does not deny the value of the negative (such as critical feedback), it does challenge researchers to look at OB through a new lens and pushes organizations to exploit employees’ strengths rather than dwell on their limitations. Improving Ethical Behavior In an organizational world characterized by cutbacks, expectations of increasing productivity, and tough competition, it’s not surprising many employees feel pressured to cut corners, break rules, and engage in other questionable practices. Increasingly they face ethical dilemmas and ethical choices, in which they are required to identify right and wrong conduct. Should they “blow the whistle” if they uncover illegal activities in their company? Do they follow orders with which they don’t personally agree? Should they give an inflated performance evaluation to an employee they like, knowing it could save that employee’s job? Do they “play politics” to advance their career?
  • 57. Coming Attractions: Developing an OB Model 23 What constitutes good ethical behavior has never been clearly defined, and, in recent years, the line differentiating right from wrong has blurred. Employees see people all around them engaging in unethical practices—elected officials pad expense accounts or take bribes; corporate executives inflate profits so they can cash in lucrative stock options; and university administrators look the other way when winning coaches encourage scholarship athletes to take easy courses. When caught, these people give excuses such as “Everyone does it” or “You have to seize every advantage nowadays.” Determining the ethically correct way to behave is especially difficult in a global economy because different cultures have different perspectives on certain ethical issues.25 Fair treatment of employees in an economic downturn varies considerably across cultures, for instance. As we’ll see in Chapter 2, perceptions of religious, ethnic, and gender diversity differ across countries. Is it any wonder employees are expressing decreased confidence in management and increasing uncertainty about what is appropriate ethical behavior in their organizations?26 Managers and their organizations are responding to the problem of unethical behavior in a number of ways.27 They’re