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Organizational Behavior
4
We dedicate Organizational Behavior: A Critical-Thinking
Approach to all of our students
who have believed in us, inspired us, and encouraged us to try
new ways of teaching.
Chris Neck dedicates this book to his wife, Jennifer, and his
children, Bryton and GiGe, for
helping him realize what is truly important in life.
Jeff Houghton dedicates this book to his wife, Loree, and sons,
Pierce and Sloan, and thanks
them for all their support, encouragement, and love.
Emma Murray dedicates this book to her husband, Sam, and her
children, Ava and Anya, for
their unending love and support.
5
Organizational Behavior
A Critical-Thinking Approach
Christopher P. Neck
Arizona State University
Jeffery D. Houghton
West Virginia University
Emma L. Murray
6
FOR INFORMATION:
SAGE Publications, Inc.
2455 Teller Road
Thousand Oaks, California 91320
E-mail: [email protected]
SAGE Publications Ltd.
1 Oliver’s Yard
55 City Road
London EC1Y 1SP
United Kingdom
SAGE Publications India Pvt. Ltd.
B 1/I 1 Mohan Cooperative Industrial Area
Mathura Road, New Delhi 110 044
India
SAGE Publications Asia-Pacific Pte. Ltd.
3 Church Street
#10-04 Samsung Hub
Singapore 049483
Copyright © 2017 by SAGE Publications, Inc.
All rights reserved. No part of this book may be reproduced or
utilized in any form or by
any means, electronic or mechanical, including photocopying,
recording, or by any
information storage and retrieval system, without permission in
writing from the publisher.
Printed in the United States of America
Names: Neck, Christopher P., author. | Houghton, Jeffery D.,
author. | Murray, Emma L., author.
Title: Organizational behavior : a critical-thinking approach /
Christopher P. Neck, Jeffery D. Houghton, Emma L.
Murray.
Description: Los Angeles : SAGE, [2017] | Includes
bibliographical references and index.
Identifiers: LCCN 2015039717 | ISBN 9781506314402
(hardcover : alk. paper)
Subjects: LCSH: Organizational behavior.
Classification: LCC HD58.7 .N43 2017 | DDC 658.3—dc23 LC
record available at http://lccn.loc.gov/2015039717
7
http://lccn.loc.gov/2015039717
This book is printed on acid-free paper.
Acquisitions Editor: Maggie Stanley
Associate Editor: Abbie Rickard
eLearning Editor: Katie Bierach
Editorial Assistants: Neda Dallal, Nicole Mangona
Production Editor: David C. Felts
Copy Editor: Pam Suwinsky
Typesetter: C&M Digitals (P) Ltd.
Proofreaders: Eleni Georgiou, Alison Syring
Indexer: Molly Hall
Cover Designer: Gail Buschman
Marketing Manager: Ashlee Blunk
8
Brief Contents
Preface
Acknowledgments
About the Authors
Part 1. Introduction
Chapter 1. Why Organizational Behavior Matters
Part 2. Individual Processes
Chapter 2. Diversity and Individual Differences
Chapter 3. Emotions, Attitudes, and Stress
Chapter 4. Perception and Learning
Chapter 5. Motivation: Concepts and Theoretical Perspectives
Chapter 6. Motivation: Practices and Applications
Part 3. Teams and Teamwork
Chapter 7. Teams
Chapter 8. Decision Making and Ethics
Chapter 9. Creativity and Innovation
Chapter 10. Conflict and Negotiation
Part 4. Leadership and Influence Processes
Chapter 11. Leadership Perspectives
Chapter 12. Influence, Power, Politics
Chapter 13. Effective Communication
Part 5. Organizational Context
Chapter 14. Organizational Culture
Chapter 15. Organizational Strategy
Chapter 16. Organizational Change and Development
Chapter 17. Organizational Structure, Design, and Technology
Glossary
Endnotes
Self-Tests
Name Index
Subject Index
9
Detailed Contents
Preface
Acknowledgments
About the Authors
Part 1. Introduction
Chapter 1. Why Organizational Behavior Matters
What Is Organizational Behavior and Why Is It Important?
Managing Human Capital
Value
Rareness
Inimitability
Behavioral Science Disciplines That Contribute to OB
OB in the Real World
Psychology
Sociology
Social Psychology
Political Science
Anthropology
A Critical-Thinking Approach to OB
The Scientific Method
Examining the Evidence
Open Systems Theory
OB Challenges and Opportunities
Globalization
Economic Factors
Workforce Diversity
Customer Service
People Skills
Innovation and Change
Sustainability
Global Ethics
Three Levels of Analysis in OB
Individuals
Teams
Organizations
Positive OB and High-Involvement Management
In Review
Key Terms
Exercise 1.1
Exercise 1.2
10
Exercise 1.3
Case Study 1.1
Self-Assessment 1.1
Part 2. Individual Processes
Chapter 2. Diversity and Individual Differences
Diversity in OB
Surface-Level and Deep-Level Diversity
Age/Generation Diversity
Race and Ethnicity
Gender Diversity and Sexual Orientation
Diversity of Abilities
Diversity Training
The Importance of Individual Differences
OB in the Real World
Nature Versus Nurture
Myers-Briggs Type Indicator and the Four Temperaments
Myers-Briggs Preferences
The Sixteen Myers-Briggs Types
The Big Five Model
Applying The Big Five
Examining the Evidence
Other Personality Attributes
In Review
Key Terms
Thinking Critically About the Case of Laura Pierce
Exercise 2.1
Exercise 2.2
Exercise 2.3
Case Study 2.1
Self-Assessment 2.1
Chapter 3. Emotions, Attitudes, and Stress
Emotions in Organizational Behavior
Emotions in the Workplace
Emotional Contagion
Emotional Labor
Emotional Regulation
Emotional Intelligence
Attitudes and Behavior
How Attributes Are Created
OB in the Real World
Cognitive Dissonance
Common Workplace Attitudes
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Stress in the Workplace
Stressors
Stress-Related Outcomes and Wellness
Managing Stress
Examining the Evidence
Wellness
In Review
Key Terms
Thinking Critically About the Case of Laura Pierce
Exercise 3.1
Exercise 3.2
Exercise 3.3
Case Study 3.1
Self-Assessment 3.1
Chapter 4. Perception and Learning
Perception: Interpreting Our Environment
Components of the Selection Process
The Perceiver
The Environment
The Focal Object
Why Is Perception Important?
Common Perceptual Distortions
Common Attribution Errors
Learning Processes: Behavioral Theory
Classical Conditioning
OB in the Real World
Operant Conditioning Theory
Reinforcement Theory
Learning Processes: The Cognitive View
Examining the Evidence
Triadic Reciprocal Model of Behavior
In Review
Key Terms
Thinking Critically About the Case of Laura Pierce
Exercise 4.1
Exercise 4.2
Exercise 4.3
Case Study 4.1
Self-Assessment 4.1
Chapter 5. Motivation: Concepts and Theoretical Perspectives
The Motivation Process
OB in the Real World
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Needs Theories
Maslow’s Hierarchy of Needs
ERG Theory
Herzberg’s Two-Factor Theory
McClelland’s Acquired Needs Theory
Money as a Motivator
Examining the Evidence
Equity Theory
Organizational Justice
Goal-Setting Theory
Specific Goals
Difficult Goals
Goal Acceptance and Commitment
Feedback
Expectancy Theory
In Review
Key Terms
Thinking Critically About the Case of Kate O’Donnell
Exercise 5.1
Exercise 5.2
Exercise 5.3
Case Study 5.1
Self-Assessment 5.1
Chapter 6. Motivation: Practices and Applications
Intrinsic Motivation
OB in the Real World
Types of Extrinsic Rewards
Seniority-Based Pay
Job Content–Based Pay
Skill-Based Pay
Performance-Based Pay
Motivation Through Job Design
Psychological Empowerment
Nontraditional Work Schedules
Examining the Evidence
In Review
Key Terms
Thinking Critically About the Case of Katie O’Donnell
Exercise 6.1
Exercise 6.2
Exercise 6.3
Case Study 6.1
13
Self-Assessment 6.1
Part 3. Teams and Teamwork
Chapter 7. Teams
Teams and Teamwork in Contemporary Organizations
Teams Versus Groups
Are Teams Effective?
Types of Teams
OB in the Real World
A Model of Team Effectiveness: Context and Composition
Team Contextual Influences
Team Composition
A Model of Team Effectiveness: Processes and Outcomes
Team Norms and Cohesion
Synergy: Process Gains and Losses
Examining the Evidence
Team Decision Making
Advantages and Disadvantages of Team Decision Making
Team Decision Approaches
In Review
Key Terms
Thinking Critically About the Case of Brian Stevens
Exercise 7.1
Exercise 7.2
Exercise 7.3
Case Study 7.1
Self-Assessment 7.1
Chapter 8. Decision Making and Ethics
Decision Making and Problem Solving
A Rational Model of Decision Making
Define the Problem
Identify and Weigh Decision Criteria
Generate Multiple Alternatives
Rate Alternatives on the Basis of Decision Criteria
Choose, Implement, and Evaluate the Best Alternative
Decision Making in the Real World
Bounded Rationality
Satisficing Decisions
Intuition
Heuristics
Biases and Errors
Examining the Evidence
Ethical Decision Making in Organizations
14
OB in the Real World
Ethical Decision-Making Approaches
In Review
Key Terms
Thinking Critically About the Case of Brian Stevens
Exercise 8.1
Exercise 8.2
Exercise 8.3
Case Study 8.1
Self-Assessment 8.1
Chapter 9. Creativity and Innovation
Creativity and Innovation in Individuals, Teams, and
Organizations
OB in the Real World
A Three-Component Model of Creativity
Domain-Relevant Skills and Expertise
Creativity-Relevant Processes
Intrinsic and Extrinsic Motivation
Support for Creativity in Organizations
Creative Potential Versus Practiced Creativity
Three Types of Support for Creativity
Examining the Evidence
The Innovation Process
Idea Generation
Problem Solving
Implementation and Diffusion
Types of Innovation in Organizations
In Review
Key Terms
Thinking Critically About the Case of Brian Stevens
Exercise 9.1
Exercise 9.2
Exercise 9.3
Case Study 9.1
Self-Assessment 9.1
Chapter 10. Conflict and Negotiation
Conflict in Teams and Organizations
Functional and Dysfunctional Conflict
Types of Conflict
The Conflict Process
Conflict Management Strategies
Examining the Evidence
Trust in Organizations
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Types of Trust
Outcomes of Trust
Negotiation and Dispute Resolution
Getting Ready to Negotiate
OB in the Real World
Shaping Expectations
Providing Supporting Evidence
Negotiating the Deal
Agreement and Implementation
Third-Party Dispute Resolution Approaches
Bargaining Approaches
Integrative Bargaining Strategies
Other Negotiating Strategies
In Review
Key Terms
Thinking Critically About the Case of Brian Stevens
Exercise 10.1
Exercise 10.2
Exercise 10.3
Case Study 10.1
Self-Assessment 10.1
Part 4. Leadership and Influence Processes
Chapter 11. Leadership Perspectives
What Is Leadership?
Formal and Informal Leadership
OB in the Real World
Management Versus Leadership
Basic Leadership Types
Early Leadership Perspectives
Trait Leadership Perspective
Behavioral Leadership Perspective
Contingency Leadership Perspective
Hersey and Blanchard’s Situational Leadership Model
House’s Path–Goal Theory
Substitutes for Leadership Model
Contemporary Leadership Perspectives
Leader–Member Exchange (LMX) Theory
Transformational Leadership
Charismatic Leadership
Examining the Evidence
Follower-Centered Leadership Perspective
Power-Distributing Leadership Perspectives
16
Empowering Leadership
Shared Leadership
Self-Leadership
Values-Based Leadership Perspectives
Authentic Leadership
Spiritual Leadership
Servant Leadership
Ethical Leadership
Cross-Cultural Leadership
Leadership and Gender
In Review
Key Terms
Thinking Critically About the Case of Langston Burrows
Exercise 11.1
Exercise 11.2
Exercise 11.3
Case Study 11.1
Self-Assessment 11.1
Chapter 12. Influence, Power, Politics
Power: Definition and Overview
Basic Sources of Power
Organizational Power
Personal Power
Using Power: Tactics for Influencing Others
Consequences of Influence Tactics
Organizational Politics
Organizational Factors
Examining the Evidence
Individual Factors
Possible Outcomes of Political Behavior
OB in the Real World
In Review
Key Terms
Thinking Critically About the Case of Langston Burrows
Exercise 12.1
Exercise 12.2
Exercise 12.3
Case Study 12.1
Self-Assessment 12.1
Chapter 13. Effective Communication
The Role of Effective Communication in Influencing Others
Types of Communication Channels
17
OB in the Real World
Barriers to Communication
Active Listening
Examining the Evidence
Communicating in Organizations
Cross-Cultural Communication
Low-Context Versus High-Context Cultures
Social Context
Other Complicating Factors
Overcoming Difficulties in Cross-Cultural Communication
In Review
Key Terms
Thinking Critically About the Case of Langston Burrows
Exercise 13.1
Exercise 13.2
Exercise 13.3
Case Study 13.1
Self-Assessment 13.1
Part 5. Organizational Context
Chapter 14. Organizational Culture
Characteristics of Organizational Culture
Components of Culture
OB in the Real World
The Competing Values Framework
Dominant Culture, Subculture, Counterculture
Strong and Weak Cultures
Artifacts of Organizational Culture
Functions of Organizational Culture
External Adaptation
Internal Integration
Potential Dysfunctions of Culture
Types of Organizational Cultures
Positive Organizational Culture
Communal Culture
Fragmented Culture
Mercenary Culture
Networked Cultures
Ethical Culture
Spiritual Culture
Examining the Evidence
Shaping Organizational Culture
Influence of Founders and Top Management
18
Selection Practices
Socialization Methods
Feldman’s Model of Organizational Socialization
In Review
Key Terms
Thinking Critically About the Case of Yolande Turner and
Pioneering
Health
Exercise 14.1
Exercise 14.2
Exercise 14.3
Case Study 14.1
Self-Assessment 14.1
Chapter 15. Organizational Strategy
Organizational Strategy
OB in the Real World
Strategic Planning Process
Levels of Strategy
Competitive Advantage and Strategy Types
Types of Strategies
Organizational Learning as a Strategic Process
Acquiring Knowledge
Distributing Knowledge
Retaining Knowledge
Globalization
Opportunities and Challenges
Adapting Organizational Practices Across Cultures
Hofstede’s Dimensions
Global Integration Versus Local Responsiveness
Leadership Across Different Cultures
International Assignments and Career Development
Culture Shock and Cultural Adaptation
Stages of Cultural Adaptation
Expatriate Failure
Benefits and Costs of International Assignments
Examining the Evidence
In Review
Key Terms
Thinking Critically About the Case of Yolande Turner and
Pioneering
Health
Exercise 15.1
Exercise 15.2
Exercise 15.3
19
Case Study 15.1
Self-Assessment 15.1
Chapter 16. Organizational Change and Development
The Change Process
The DADA Syndrome
OB in the Real World
Lewin’s Basic Change Model
Lewin’s Force Field Analysis
Forces for Change
External Forces for Change
Internal Forces for Change
Resistance to Change
Individual Sources for Resistance to Change
Organizational Sources of Resistance to Change
Examining the Evidence
Reducing Resistance to Change
Organizational Development
Types of OD Change Interventions
Structural Interventions
Task-Technology Interventions
Sociotechnical Systems Redesign
Quality of Worklife Interventions
People-Focused Interventions
In Review
Key Terms
Thinking Critically About the Case of Yolande Turner and
Pioneering
Health
Exercise 16.1
Exercise 16.2
Exercise 16.3
Case Study 16.1
Self-Assessment 16.1
Chapter 17. Organizational Structure, Design, and Technology
Organizational Structure
OB in the Real World
Basic Organizing Concepts
Specialization and Division of Labor
Departmentalization
Chain of Command
Span of Control
Centralization and Decentralization
Examining the Evidence
20
Mechanistic and Organic Models
Formalization and Bureaucracy
Types of Organizational Structures
Organizational Design
Integrating Technology
Technology and Organizational Design
Designing Technology
In Review
Key Terms
Thinking Critically About the Case of Yolande Turner and
Pioneering
Health
Exercise 17.1
Exercise 17.2
Exercise 17.3
Case Study 17.1
Self-Assessment 17.1
Glossary
Endnotes
Self-Tests
Name Index
Subject Index
21
Preface
Nikos Kazantzakis once wrote:
Ideal teachers are those who use themselves as bridges over
which they invite their
students to cross; then having facilitated their crossing, joyfully
collapse, encouraging
them to create bridges of their own.
Our goal as an author team was to write an organizational
behavior (OB) textbook that
really engaged students—not one that involved memorizing its
content for the sole purpose
of passing exams and then quickly forgetting whatever they had
learned. We wanted to
write a textbook that students could use well after the semester
was over to help them
actively learn and think critically in order to understand how
people behave as they pursue
their career goals. In other words, we wanted to help students
“build bridges” to their goals
and dreams. We hope we have achieved our goal in
Organizational Behavior: A Critical-
Thinking Approach for students in organizational behavior
classes across the world.
In our 21st-century business world, organizational behavior has
taken on a new
significance. In an environment in which competition is fiercer
than ever, it is people who
act as differentiators in the workplace. In every aspect of
business, people are the
cornerstone of success. This is why it is so important to
understand human behavior.
The following quote from Curt Coffman and Gabriela Gonzalez-
Molina in Follow This
Path: How the World’s Greatest Organizations Drive Growth by
Unleashing Human Potential
reinforces the importance of understanding human behavior in
organizations:
The success of your organization doesn’t depend on your
understanding of economics,
or organizational development, or marketing. It depends, quite
simply, on your
understanding of human psychology: how each individual
employee connects with
your company and how each individual employee connects with
your customers.
One of the earliest studies of organizational behavior was
carried out at AT&T’s Western
Electric Hawthorne plant by Harvard’s Elton Mayo in 1927. The
principle findings of this
study showed that when workers are given the opportunity to
contribute their thinking and
learning to workplace issues, their job performance improves.
This finding is still relevant
today. Studies in organizational behavior add to our
understanding of the individuals
working within all types of businesses, from corporate to
entrepreneurial. Organizational
Behavior: A Critical-Thinking Approach attempts to capture the
body of knowledge that
22
encompasses the organizational behavioral research into a book
that is fun to read, captures
the reader’s attention, and imparts the organizational behavioral
knowledge in a way that
promotes critical thinking.
23
Our Vision
Organizational Behavior: A Critical-Thinking Approach is a
textbook for college-level
undergraduate students seeking insight into individual behavior,
group behavior,
organizational structure, and organizational processes through
the lens of critical thinking.
Organizational behavior courses are defined by the following
trends: larger course sizes, the
need for continually changing content to stay relevant, and
instructors working to make
vast online resources meaningful to the student experience. The
cumulative effect of these
trends on instructors is a much more demanding environment
for teaching and learning. In
a quickly changing business environment, many books need a
complete rewrite to be fully
up-to-date. Even better, though, this is a new book—written
from today’s perspective, with
an eye to the near future. Our goal in writing this book is to
bring to the classroom a fresh
view of human behavior in organizations.
24
What Makes Our Book Unique
Critical-thinking approach. Students learn to analyze behavior
patterns and assess
consequences to predictive paths. Managers make decisions that
have delayed
consequences on situations, with extraordinary complexity, yet
predictable patterns of
behavior. A student’s ability to make decisions that result in
expected and desirable
consequences should be the sole objective of all organizational
behavior textbooks.
Continuing case narratives. Students are associative thinkers
and continuously seek
multiple data points to connect into a constellation of meaning.
People retain
knowledge through meaningful narratives, which means that
stories that illustrate
richly textured situations are better for learning than listing
brands and public figures
in the chapters.
Practical applications, self-assessments, experiential exercises,
and additional pedagogical
features make OB come to life and encourage students to engage
with OB concepts
in meaningful ways.
25
A Critical-Thinking Approach
We believe that in today’s business world, organizational
behavior is more important than
ever. Companies are looking for employees and managers who
have strong organizational
behavior skills. Critical thinking, problem solving, and
creativity are valuable and essential
commodities. Critical thinking is an essential skill; managers
use critical thinking to
understand, explain, predict, and influence behavior in the
workplace.
Our text provides a comprehensive overview of OB theories and
processes with a strong
emphasis on critical-thinking applications in order to equip
students with the information
and skills they need to thrive in organizations today.
26
Why Critical Thinking Matters in OB
A critical thinker uses his or her intelligence, knowledge, and
skills to question and carefully
explore situations and to arrive at thoughtful conclusions based
on evidence and reason.
Someone thinking critically is able to get past biases and view
situations from different
perspectives to ultimately improve his or her understanding of
the world.
Business leaders use critical thinking when making decisions,
solving problems, gathering
information, and asking questions. Time and again, research has
shown the effectiveness of
critical thinking in the workplace. In an article published in the
journal Current Directions
in Psychological Science, the authors report that cognitive
ability tests, including critical-
thinking tests “are among the strongest and most consistent
predictors of performance
across academic and work settings.”1
In Organizational Behavior: A Critical-Thinking Approach, we
use the components and core
skills of critical thinking to teach the many facets of
organizational behavior to students.
Adding critical thinking to these behaviors further enhances
students’ abilities to
strategically think as well as analyze and solve problems. By
seeking first to understand the
dynamics of human behavior, then sharing the knowledge
learned, they will be able to
build more successful relationships within their personal and
professional lives.
27
How Our Book Incorporates Critical Thinking
A lot of OB books claim to help students to develop their
critical-thinking skills. What
makes our book different? Our book incorporates critical
thinking on every page. Instead of
passively reading through each chapter, the student is asked to
pause, reflect, and engage
more critically with the content.
Chapter 1 explains the central role critical thinking plays in OB
and introduces a
five-step critical-thinking framework that students can apply to
challenging
scenarios, problems, decisions, and other issues.
Thinking Critically questions tied to Bloom’s Taxonomy appear
throughout each
chapter. Bracketed notations identify which domain(s) of
Bloom’s Taxonomy the
question falls into: understand, apply, analyze, evaluate, and
create. These questions
don’t necessarily have a right or wrong answer but rather are
designed to challenge
students to think critically and achieve higher levels of
learning.
Examining the Evidence boxes highlight a recent seminal OB
study from high-
quality OB journals and discusses its practical applications in
the business world.
Critical-thinking questions at the end of each box allow students
to see how research
in academe applies to real-life settings.
OB in the Real World boxes feature real-world anecdotes,
quotes, and examples
from seasoned business professionals who share their
knowledge and experience with
students by describing how they used OB to positively influence
outcomes and
achieve organizational success. Critical-thinking questions help
students see how OB
concepts impact real people and organizations.
These critical-thinking elements are perfect for assignments or
class discussions and lively
debate.
28
Continuing Case Narratives
In order to support our balanced approach to research and
practice, and our pedagogical
commitment to critical thinking, Organizational Behavior: A
Critical-Thinking Approach
takes a new approach to the style of OB textbooks. We include
all the concepts and key
terms that are expected, but we do so in a context that aids
instructors in showing how and
why they are applied in real world situations, and in a style that
ignites the imagination and
sparks discussion.
Rather than a series of unrelated organizational snapshots that
offer only a superficial
understanding of OB content, we create rich, continuing case
study narratives that illustrate
the exciting and challenging complexities of the real world.
Each of the main OB
subdivisions is presented through business case narratives that
span multiple chapters.
These continuing case narratives serve two key purposes:
1. Provide fully imagined characters and relationships that
reflect challenges and
opportunities that managers encounter
2. Provide sufficiently rich contexts to practice critical-thinking
skills in ways that
mimic actual workplace dynamics. How do we ensure that these
case narratives are
consistent with top-tier research and the challenges that
businesses are addressing in
today’s economy?
For Parts 2–5 of the book, we develop a case representing an
industry and featuring several
managers in an organization. These continuing cases are
inspired by real people and real
events but fictionalized for the learning process. Chapters
include a Back to the Case recap
that summarizes the events of the previous chapter’s case
narrative, making it easy for
instructors to assign chapters out of order.
Following is a summary of each continuing case narrative in the
text:
Chapters 2–4. The Case of Laura Pierce: Differences at the
West Texas Regional Theatre
The narrative focuses on Laura Pierce, a newly employed
marketing and development
director at the financially struggling West Texas Regional
Theatre (WTRT), and the
challenges she faces in trying to overcome individual
differences in order to help save the
theatre. In Chapter 2, Laura meets her new colleagues and gets
to know more about their
different backgrounds and personalities. In Chapter 3, Laura
introduces her ideas to drive
business to WTRT but needs to navigate the attitude and
behavior of the staff. In Chapter
4, Laura deals with the consequences of differing perceptions as
she meets with the WTRT
board members to discuss the theatre’s financial decline.
29
Chapters 5–6. The Case of Katie O’Donnell: Motivating Staff
at the Waterfront Grill
Katie O’Donnell is an MBA student who has been a server at
the restaurant for the past
two years and just accepted the job of assistant manager at the
Waterfront Grill in upstate
New York. She sees her promotion as an opportunity to identify
and solve a number of
problems she has experienced at the restaurant over the past two
years. In Chapter 5, Katie
focuses on addressing high turnover by suggesting different
strategies to resolve problems
and motivate staff at the Waterfront Grill. In Chapter 6, Katie
starts to put some of these
motivational concepts into practice with mixed results.
Chapters 7–10. The Case of Brian Stevens: Trouble at the
Tractor Assembly Plant
HR Manager Brian Stevens has been working in a tractor-engine
manufacturing plant in
the Midwest. He recently received a promotion to plant manager
at the company’s tractor
assembly plant and reports directly to the president of the
company, Hans Wagner. Over
the course of the narrative, Brian faces challenges across
different teams and departments
and is forced to make some tough decisions. In Chapter 7, Brian
discovers one of the main
problems in the tractor assembly plant: the team in the
purchasing department is
underperforming and he must work with the team to resolve the
issue. In Chapter 8, Brian
faces an ethical dilemma when his boss, Hans Wagner, tries to
convince Brian to accept his
decision to make some unethical cost-cutting initiatives. In
Chapter 9, Brian faces the
challenge of creating innovative new machinery that will
increase productivity. In Chapter
10, Brian must deal with some conflict when new competitors
threaten the plant’s new
product and use some negotiation strategies in order to resolve
the conflict.
Chapters 11–13. The Case of Langston Burrows: Leadership
Challenges
Langston Burrows is a recent college graduate with a bachelor’s
degree in business
administration who has been offered a place in the leadership
development program (LDP)
at a mid-sized regional bank. Langston sets out to determine his
own leadership style. In
Chapter 11, Langston begins a three-month rotational leadership
position and gets to know
the bank staff and experiment with different leadership styles.
In Chapter 12, Langston
learns about how different people wield power and influence
and endures the unfair
political behavior of a more senior colleague. In Chapter 13,
Langston must overcome some
communication barriers in order to find a new role within the
bank.
Chapters 14–17. The Case of Yolande Turner: Pioneering
30
Health Goes International
Pioneering Health is a small organization based outside Chicago
and consisting of 300
people. Headed by founder and CEO Yolande Turner, a former
pharmaceutical-product
line manager, the company sells disease management strategies
to other health …

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  • 1. 2 3 Organizational Behavior 4 We dedicate Organizational Behavior: A Critical-Thinking Approach to all of our students who have believed in us, inspired us, and encouraged us to try new ways of teaching. Chris Neck dedicates this book to his wife, Jennifer, and his children, Bryton and GiGe, for helping him realize what is truly important in life. Jeff Houghton dedicates this book to his wife, Loree, and sons, Pierce and Sloan, and thanks them for all their support, encouragement, and love. Emma Murray dedicates this book to her husband, Sam, and her children, Ava and Anya, for their unending love and support.
  • 2. 5 Organizational Behavior A Critical-Thinking Approach Christopher P. Neck Arizona State University Jeffery D. Houghton West Virginia University Emma L. Murray 6 FOR INFORMATION: SAGE Publications, Inc. 2455 Teller Road Thousand Oaks, California 91320 E-mail: [email protected] SAGE Publications Ltd. 1 Oliver’s Yard 55 City Road London EC1Y 1SP
  • 3. United Kingdom SAGE Publications India Pvt. Ltd. B 1/I 1 Mohan Cooperative Industrial Area Mathura Road, New Delhi 110 044 India SAGE Publications Asia-Pacific Pte. Ltd. 3 Church Street #10-04 Samsung Hub Singapore 049483 Copyright © 2017 by SAGE Publications, Inc. All rights reserved. No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the publisher. Printed in the United States of America Names: Neck, Christopher P., author. | Houghton, Jeffery D., author. | Murray, Emma L., author. Title: Organizational behavior : a critical-thinking approach / Christopher P. Neck, Jeffery D. Houghton, Emma L. Murray.
  • 4. Description: Los Angeles : SAGE, [2017] | Includes bibliographical references and index. Identifiers: LCCN 2015039717 | ISBN 9781506314402 (hardcover : alk. paper) Subjects: LCSH: Organizational behavior. Classification: LCC HD58.7 .N43 2017 | DDC 658.3—dc23 LC record available at http://lccn.loc.gov/2015039717 7 http://lccn.loc.gov/2015039717 This book is printed on acid-free paper. Acquisitions Editor: Maggie Stanley Associate Editor: Abbie Rickard eLearning Editor: Katie Bierach Editorial Assistants: Neda Dallal, Nicole Mangona Production Editor: David C. Felts Copy Editor: Pam Suwinsky Typesetter: C&M Digitals (P) Ltd. Proofreaders: Eleni Georgiou, Alison Syring Indexer: Molly Hall
  • 5. Cover Designer: Gail Buschman Marketing Manager: Ashlee Blunk 8 Brief Contents Preface Acknowledgments About the Authors Part 1. Introduction Chapter 1. Why Organizational Behavior Matters Part 2. Individual Processes Chapter 2. Diversity and Individual Differences Chapter 3. Emotions, Attitudes, and Stress Chapter 4. Perception and Learning Chapter 5. Motivation: Concepts and Theoretical Perspectives Chapter 6. Motivation: Practices and Applications Part 3. Teams and Teamwork Chapter 7. Teams Chapter 8. Decision Making and Ethics Chapter 9. Creativity and Innovation Chapter 10. Conflict and Negotiation Part 4. Leadership and Influence Processes Chapter 11. Leadership Perspectives Chapter 12. Influence, Power, Politics Chapter 13. Effective Communication
  • 6. Part 5. Organizational Context Chapter 14. Organizational Culture Chapter 15. Organizational Strategy Chapter 16. Organizational Change and Development Chapter 17. Organizational Structure, Design, and Technology Glossary Endnotes Self-Tests Name Index Subject Index 9 Detailed Contents Preface Acknowledgments About the Authors Part 1. Introduction Chapter 1. Why Organizational Behavior Matters What Is Organizational Behavior and Why Is It Important? Managing Human Capital Value Rareness Inimitability Behavioral Science Disciplines That Contribute to OB OB in the Real World Psychology Sociology
  • 7. Social Psychology Political Science Anthropology A Critical-Thinking Approach to OB The Scientific Method Examining the Evidence Open Systems Theory OB Challenges and Opportunities Globalization Economic Factors Workforce Diversity Customer Service People Skills Innovation and Change Sustainability Global Ethics Three Levels of Analysis in OB Individuals Teams Organizations Positive OB and High-Involvement Management In Review Key Terms Exercise 1.1 Exercise 1.2 10
  • 8. Exercise 1.3 Case Study 1.1 Self-Assessment 1.1 Part 2. Individual Processes Chapter 2. Diversity and Individual Differences Diversity in OB Surface-Level and Deep-Level Diversity Age/Generation Diversity Race and Ethnicity Gender Diversity and Sexual Orientation Diversity of Abilities Diversity Training The Importance of Individual Differences OB in the Real World Nature Versus Nurture Myers-Briggs Type Indicator and the Four Temperaments Myers-Briggs Preferences The Sixteen Myers-Briggs Types The Big Five Model Applying The Big Five Examining the Evidence Other Personality Attributes In Review Key Terms Thinking Critically About the Case of Laura Pierce Exercise 2.1 Exercise 2.2 Exercise 2.3 Case Study 2.1 Self-Assessment 2.1
  • 9. Chapter 3. Emotions, Attitudes, and Stress Emotions in Organizational Behavior Emotions in the Workplace Emotional Contagion Emotional Labor Emotional Regulation Emotional Intelligence Attitudes and Behavior How Attributes Are Created OB in the Real World Cognitive Dissonance Common Workplace Attitudes 11 Stress in the Workplace Stressors Stress-Related Outcomes and Wellness Managing Stress Examining the Evidence Wellness In Review Key Terms Thinking Critically About the Case of Laura Pierce Exercise 3.1 Exercise 3.2
  • 10. Exercise 3.3 Case Study 3.1 Self-Assessment 3.1 Chapter 4. Perception and Learning Perception: Interpreting Our Environment Components of the Selection Process The Perceiver The Environment The Focal Object Why Is Perception Important? Common Perceptual Distortions Common Attribution Errors Learning Processes: Behavioral Theory Classical Conditioning OB in the Real World Operant Conditioning Theory Reinforcement Theory Learning Processes: The Cognitive View Examining the Evidence Triadic Reciprocal Model of Behavior In Review Key Terms Thinking Critically About the Case of Laura Pierce Exercise 4.1 Exercise 4.2 Exercise 4.3 Case Study 4.1 Self-Assessment 4.1
  • 11. Chapter 5. Motivation: Concepts and Theoretical Perspectives The Motivation Process OB in the Real World 12 Needs Theories Maslow’s Hierarchy of Needs ERG Theory Herzberg’s Two-Factor Theory McClelland’s Acquired Needs Theory Money as a Motivator Examining the Evidence Equity Theory Organizational Justice Goal-Setting Theory Specific Goals Difficult Goals Goal Acceptance and Commitment Feedback Expectancy Theory In Review Key Terms Thinking Critically About the Case of Kate O’Donnell Exercise 5.1 Exercise 5.2 Exercise 5.3 Case Study 5.1 Self-Assessment 5.1
  • 12. Chapter 6. Motivation: Practices and Applications Intrinsic Motivation OB in the Real World Types of Extrinsic Rewards Seniority-Based Pay Job Content–Based Pay Skill-Based Pay Performance-Based Pay Motivation Through Job Design Psychological Empowerment Nontraditional Work Schedules Examining the Evidence In Review Key Terms Thinking Critically About the Case of Katie O’Donnell Exercise 6.1 Exercise 6.2 Exercise 6.3 Case Study 6.1 13 Self-Assessment 6.1 Part 3. Teams and Teamwork Chapter 7. Teams Teams and Teamwork in Contemporary Organizations Teams Versus Groups Are Teams Effective? Types of Teams
  • 13. OB in the Real World A Model of Team Effectiveness: Context and Composition Team Contextual Influences Team Composition A Model of Team Effectiveness: Processes and Outcomes Team Norms and Cohesion Synergy: Process Gains and Losses Examining the Evidence Team Decision Making Advantages and Disadvantages of Team Decision Making Team Decision Approaches In Review Key Terms Thinking Critically About the Case of Brian Stevens Exercise 7.1 Exercise 7.2 Exercise 7.3 Case Study 7.1 Self-Assessment 7.1 Chapter 8. Decision Making and Ethics Decision Making and Problem Solving A Rational Model of Decision Making Define the Problem Identify and Weigh Decision Criteria Generate Multiple Alternatives Rate Alternatives on the Basis of Decision Criteria Choose, Implement, and Evaluate the Best Alternative Decision Making in the Real World
  • 14. Bounded Rationality Satisficing Decisions Intuition Heuristics Biases and Errors Examining the Evidence Ethical Decision Making in Organizations 14 OB in the Real World Ethical Decision-Making Approaches In Review Key Terms Thinking Critically About the Case of Brian Stevens Exercise 8.1 Exercise 8.2 Exercise 8.3 Case Study 8.1 Self-Assessment 8.1 Chapter 9. Creativity and Innovation Creativity and Innovation in Individuals, Teams, and Organizations OB in the Real World A Three-Component Model of Creativity Domain-Relevant Skills and Expertise Creativity-Relevant Processes Intrinsic and Extrinsic Motivation Support for Creativity in Organizations Creative Potential Versus Practiced Creativity
  • 15. Three Types of Support for Creativity Examining the Evidence The Innovation Process Idea Generation Problem Solving Implementation and Diffusion Types of Innovation in Organizations In Review Key Terms Thinking Critically About the Case of Brian Stevens Exercise 9.1 Exercise 9.2 Exercise 9.3 Case Study 9.1 Self-Assessment 9.1 Chapter 10. Conflict and Negotiation Conflict in Teams and Organizations Functional and Dysfunctional Conflict Types of Conflict The Conflict Process Conflict Management Strategies Examining the Evidence Trust in Organizations 15 Types of Trust Outcomes of Trust
  • 16. Negotiation and Dispute Resolution Getting Ready to Negotiate OB in the Real World Shaping Expectations Providing Supporting Evidence Negotiating the Deal Agreement and Implementation Third-Party Dispute Resolution Approaches Bargaining Approaches Integrative Bargaining Strategies Other Negotiating Strategies In Review Key Terms Thinking Critically About the Case of Brian Stevens Exercise 10.1 Exercise 10.2 Exercise 10.3 Case Study 10.1 Self-Assessment 10.1 Part 4. Leadership and Influence Processes Chapter 11. Leadership Perspectives What Is Leadership? Formal and Informal Leadership OB in the Real World Management Versus Leadership Basic Leadership Types Early Leadership Perspectives Trait Leadership Perspective
  • 17. Behavioral Leadership Perspective Contingency Leadership Perspective Hersey and Blanchard’s Situational Leadership Model House’s Path–Goal Theory Substitutes for Leadership Model Contemporary Leadership Perspectives Leader–Member Exchange (LMX) Theory Transformational Leadership Charismatic Leadership Examining the Evidence Follower-Centered Leadership Perspective Power-Distributing Leadership Perspectives 16 Empowering Leadership Shared Leadership Self-Leadership Values-Based Leadership Perspectives Authentic Leadership Spiritual Leadership Servant Leadership Ethical Leadership Cross-Cultural Leadership Leadership and Gender In Review Key Terms Thinking Critically About the Case of Langston Burrows Exercise 11.1
  • 18. Exercise 11.2 Exercise 11.3 Case Study 11.1 Self-Assessment 11.1 Chapter 12. Influence, Power, Politics Power: Definition and Overview Basic Sources of Power Organizational Power Personal Power Using Power: Tactics for Influencing Others Consequences of Influence Tactics Organizational Politics Organizational Factors Examining the Evidence Individual Factors Possible Outcomes of Political Behavior OB in the Real World In Review Key Terms Thinking Critically About the Case of Langston Burrows Exercise 12.1 Exercise 12.2 Exercise 12.3 Case Study 12.1 Self-Assessment 12.1 Chapter 13. Effective Communication The Role of Effective Communication in Influencing Others Types of Communication Channels
  • 19. 17 OB in the Real World Barriers to Communication Active Listening Examining the Evidence Communicating in Organizations Cross-Cultural Communication Low-Context Versus High-Context Cultures Social Context Other Complicating Factors Overcoming Difficulties in Cross-Cultural Communication In Review Key Terms Thinking Critically About the Case of Langston Burrows Exercise 13.1 Exercise 13.2 Exercise 13.3 Case Study 13.1 Self-Assessment 13.1 Part 5. Organizational Context Chapter 14. Organizational Culture Characteristics of Organizational Culture Components of Culture OB in the Real World The Competing Values Framework Dominant Culture, Subculture, Counterculture Strong and Weak Cultures
  • 20. Artifacts of Organizational Culture Functions of Organizational Culture External Adaptation Internal Integration Potential Dysfunctions of Culture Types of Organizational Cultures Positive Organizational Culture Communal Culture Fragmented Culture Mercenary Culture Networked Cultures Ethical Culture Spiritual Culture Examining the Evidence Shaping Organizational Culture Influence of Founders and Top Management 18 Selection Practices Socialization Methods Feldman’s Model of Organizational Socialization In Review Key Terms Thinking Critically About the Case of Yolande Turner and Pioneering Health Exercise 14.1
  • 21. Exercise 14.2 Exercise 14.3 Case Study 14.1 Self-Assessment 14.1 Chapter 15. Organizational Strategy Organizational Strategy OB in the Real World Strategic Planning Process Levels of Strategy Competitive Advantage and Strategy Types Types of Strategies Organizational Learning as a Strategic Process Acquiring Knowledge Distributing Knowledge Retaining Knowledge Globalization Opportunities and Challenges Adapting Organizational Practices Across Cultures Hofstede’s Dimensions Global Integration Versus Local Responsiveness Leadership Across Different Cultures International Assignments and Career Development Culture Shock and Cultural Adaptation Stages of Cultural Adaptation Expatriate Failure Benefits and Costs of International Assignments Examining the Evidence In Review Key Terms
  • 22. Thinking Critically About the Case of Yolande Turner and Pioneering Health Exercise 15.1 Exercise 15.2 Exercise 15.3 19 Case Study 15.1 Self-Assessment 15.1 Chapter 16. Organizational Change and Development The Change Process The DADA Syndrome OB in the Real World Lewin’s Basic Change Model Lewin’s Force Field Analysis Forces for Change External Forces for Change Internal Forces for Change Resistance to Change Individual Sources for Resistance to Change Organizational Sources of Resistance to Change Examining the Evidence Reducing Resistance to Change Organizational Development Types of OD Change Interventions
  • 23. Structural Interventions Task-Technology Interventions Sociotechnical Systems Redesign Quality of Worklife Interventions People-Focused Interventions In Review Key Terms Thinking Critically About the Case of Yolande Turner and Pioneering Health Exercise 16.1 Exercise 16.2 Exercise 16.3 Case Study 16.1 Self-Assessment 16.1 Chapter 17. Organizational Structure, Design, and Technology Organizational Structure OB in the Real World Basic Organizing Concepts Specialization and Division of Labor Departmentalization Chain of Command Span of Control Centralization and Decentralization Examining the Evidence 20 Mechanistic and Organic Models
  • 24. Formalization and Bureaucracy Types of Organizational Structures Organizational Design Integrating Technology Technology and Organizational Design Designing Technology In Review Key Terms Thinking Critically About the Case of Yolande Turner and Pioneering Health Exercise 17.1 Exercise 17.2 Exercise 17.3 Case Study 17.1 Self-Assessment 17.1 Glossary Endnotes Self-Tests Name Index Subject Index 21 Preface Nikos Kazantzakis once wrote: Ideal teachers are those who use themselves as bridges over which they invite their
  • 25. students to cross; then having facilitated their crossing, joyfully collapse, encouraging them to create bridges of their own. Our goal as an author team was to write an organizational behavior (OB) textbook that really engaged students—not one that involved memorizing its content for the sole purpose of passing exams and then quickly forgetting whatever they had learned. We wanted to write a textbook that students could use well after the semester was over to help them actively learn and think critically in order to understand how people behave as they pursue their career goals. In other words, we wanted to help students “build bridges” to their goals and dreams. We hope we have achieved our goal in Organizational Behavior: A Critical- Thinking Approach for students in organizational behavior classes across the world. In our 21st-century business world, organizational behavior has taken on a new significance. In an environment in which competition is fiercer than ever, it is people who act as differentiators in the workplace. In every aspect of business, people are the cornerstone of success. This is why it is so important to understand human behavior. The following quote from Curt Coffman and Gabriela Gonzalez- Molina in Follow This Path: How the World’s Greatest Organizations Drive Growth by Unleashing Human Potential reinforces the importance of understanding human behavior in organizations:
  • 26. The success of your organization doesn’t depend on your understanding of economics, or organizational development, or marketing. It depends, quite simply, on your understanding of human psychology: how each individual employee connects with your company and how each individual employee connects with your customers. One of the earliest studies of organizational behavior was carried out at AT&T’s Western Electric Hawthorne plant by Harvard’s Elton Mayo in 1927. The principle findings of this study showed that when workers are given the opportunity to contribute their thinking and learning to workplace issues, their job performance improves. This finding is still relevant today. Studies in organizational behavior add to our understanding of the individuals working within all types of businesses, from corporate to entrepreneurial. Organizational Behavior: A Critical-Thinking Approach attempts to capture the body of knowledge that 22 encompasses the organizational behavioral research into a book that is fun to read, captures the reader’s attention, and imparts the organizational behavioral knowledge in a way that promotes critical thinking. 23
  • 27. Our Vision Organizational Behavior: A Critical-Thinking Approach is a textbook for college-level undergraduate students seeking insight into individual behavior, group behavior, organizational structure, and organizational processes through the lens of critical thinking. Organizational behavior courses are defined by the following trends: larger course sizes, the need for continually changing content to stay relevant, and instructors working to make vast online resources meaningful to the student experience. The cumulative effect of these trends on instructors is a much more demanding environment for teaching and learning. In a quickly changing business environment, many books need a complete rewrite to be fully up-to-date. Even better, though, this is a new book—written from today’s perspective, with an eye to the near future. Our goal in writing this book is to bring to the classroom a fresh view of human behavior in organizations. 24 What Makes Our Book Unique Critical-thinking approach. Students learn to analyze behavior patterns and assess
  • 28. consequences to predictive paths. Managers make decisions that have delayed consequences on situations, with extraordinary complexity, yet predictable patterns of behavior. A student’s ability to make decisions that result in expected and desirable consequences should be the sole objective of all organizational behavior textbooks. Continuing case narratives. Students are associative thinkers and continuously seek multiple data points to connect into a constellation of meaning. People retain knowledge through meaningful narratives, which means that stories that illustrate richly textured situations are better for learning than listing brands and public figures in the chapters. Practical applications, self-assessments, experiential exercises, and additional pedagogical features make OB come to life and encourage students to engage with OB concepts in meaningful ways. 25 A Critical-Thinking Approach We believe that in today’s business world, organizational behavior is more important than ever. Companies are looking for employees and managers who have strong organizational behavior skills. Critical thinking, problem solving, and creativity are valuable and essential commodities. Critical thinking is an essential skill; managers
  • 29. use critical thinking to understand, explain, predict, and influence behavior in the workplace. Our text provides a comprehensive overview of OB theories and processes with a strong emphasis on critical-thinking applications in order to equip students with the information and skills they need to thrive in organizations today. 26 Why Critical Thinking Matters in OB A critical thinker uses his or her intelligence, knowledge, and skills to question and carefully explore situations and to arrive at thoughtful conclusions based on evidence and reason. Someone thinking critically is able to get past biases and view situations from different perspectives to ultimately improve his or her understanding of the world. Business leaders use critical thinking when making decisions, solving problems, gathering information, and asking questions. Time and again, research has shown the effectiveness of critical thinking in the workplace. In an article published in the journal Current Directions in Psychological Science, the authors report that cognitive ability tests, including critical- thinking tests “are among the strongest and most consistent predictors of performance across academic and work settings.”1
  • 30. In Organizational Behavior: A Critical-Thinking Approach, we use the components and core skills of critical thinking to teach the many facets of organizational behavior to students. Adding critical thinking to these behaviors further enhances students’ abilities to strategically think as well as analyze and solve problems. By seeking first to understand the dynamics of human behavior, then sharing the knowledge learned, they will be able to build more successful relationships within their personal and professional lives. 27 How Our Book Incorporates Critical Thinking A lot of OB books claim to help students to develop their critical-thinking skills. What makes our book different? Our book incorporates critical thinking on every page. Instead of passively reading through each chapter, the student is asked to pause, reflect, and engage more critically with the content. Chapter 1 explains the central role critical thinking plays in OB and introduces a five-step critical-thinking framework that students can apply to challenging scenarios, problems, decisions, and other issues. Thinking Critically questions tied to Bloom’s Taxonomy appear throughout each chapter. Bracketed notations identify which domain(s) of
  • 31. Bloom’s Taxonomy the question falls into: understand, apply, analyze, evaluate, and create. These questions don’t necessarily have a right or wrong answer but rather are designed to challenge students to think critically and achieve higher levels of learning. Examining the Evidence boxes highlight a recent seminal OB study from high- quality OB journals and discusses its practical applications in the business world. Critical-thinking questions at the end of each box allow students to see how research in academe applies to real-life settings. OB in the Real World boxes feature real-world anecdotes, quotes, and examples from seasoned business professionals who share their knowledge and experience with students by describing how they used OB to positively influence outcomes and achieve organizational success. Critical-thinking questions help students see how OB concepts impact real people and organizations. These critical-thinking elements are perfect for assignments or class discussions and lively debate. 28 Continuing Case Narratives In order to support our balanced approach to research and practice, and our pedagogical
  • 32. commitment to critical thinking, Organizational Behavior: A Critical-Thinking Approach takes a new approach to the style of OB textbooks. We include all the concepts and key terms that are expected, but we do so in a context that aids instructors in showing how and why they are applied in real world situations, and in a style that ignites the imagination and sparks discussion. Rather than a series of unrelated organizational snapshots that offer only a superficial understanding of OB content, we create rich, continuing case study narratives that illustrate the exciting and challenging complexities of the real world. Each of the main OB subdivisions is presented through business case narratives that span multiple chapters. These continuing case narratives serve two key purposes: 1. Provide fully imagined characters and relationships that reflect challenges and opportunities that managers encounter 2. Provide sufficiently rich contexts to practice critical-thinking skills in ways that mimic actual workplace dynamics. How do we ensure that these case narratives are consistent with top-tier research and the challenges that businesses are addressing in today’s economy? For Parts 2–5 of the book, we develop a case representing an industry and featuring several managers in an organization. These continuing cases are inspired by real people and real
  • 33. events but fictionalized for the learning process. Chapters include a Back to the Case recap that summarizes the events of the previous chapter’s case narrative, making it easy for instructors to assign chapters out of order. Following is a summary of each continuing case narrative in the text: Chapters 2–4. The Case of Laura Pierce: Differences at the West Texas Regional Theatre The narrative focuses on Laura Pierce, a newly employed marketing and development director at the financially struggling West Texas Regional Theatre (WTRT), and the challenges she faces in trying to overcome individual differences in order to help save the theatre. In Chapter 2, Laura meets her new colleagues and gets to know more about their different backgrounds and personalities. In Chapter 3, Laura introduces her ideas to drive business to WTRT but needs to navigate the attitude and behavior of the staff. In Chapter 4, Laura deals with the consequences of differing perceptions as she meets with the WTRT board members to discuss the theatre’s financial decline. 29 Chapters 5–6. The Case of Katie O’Donnell: Motivating Staff at the Waterfront Grill Katie O’Donnell is an MBA student who has been a server at
  • 34. the restaurant for the past two years and just accepted the job of assistant manager at the Waterfront Grill in upstate New York. She sees her promotion as an opportunity to identify and solve a number of problems she has experienced at the restaurant over the past two years. In Chapter 5, Katie focuses on addressing high turnover by suggesting different strategies to resolve problems and motivate staff at the Waterfront Grill. In Chapter 6, Katie starts to put some of these motivational concepts into practice with mixed results. Chapters 7–10. The Case of Brian Stevens: Trouble at the Tractor Assembly Plant HR Manager Brian Stevens has been working in a tractor-engine manufacturing plant in the Midwest. He recently received a promotion to plant manager at the company’s tractor assembly plant and reports directly to the president of the company, Hans Wagner. Over the course of the narrative, Brian faces challenges across different teams and departments and is forced to make some tough decisions. In Chapter 7, Brian discovers one of the main problems in the tractor assembly plant: the team in the purchasing department is underperforming and he must work with the team to resolve the issue. In Chapter 8, Brian faces an ethical dilemma when his boss, Hans Wagner, tries to convince Brian to accept his decision to make some unethical cost-cutting initiatives. In Chapter 9, Brian faces the challenge of creating innovative new machinery that will increase productivity. In Chapter
  • 35. 10, Brian must deal with some conflict when new competitors threaten the plant’s new product and use some negotiation strategies in order to resolve the conflict. Chapters 11–13. The Case of Langston Burrows: Leadership Challenges Langston Burrows is a recent college graduate with a bachelor’s degree in business administration who has been offered a place in the leadership development program (LDP) at a mid-sized regional bank. Langston sets out to determine his own leadership style. In Chapter 11, Langston begins a three-month rotational leadership position and gets to know the bank staff and experiment with different leadership styles. In Chapter 12, Langston learns about how different people wield power and influence and endures the unfair political behavior of a more senior colleague. In Chapter 13, Langston must overcome some communication barriers in order to find a new role within the bank. Chapters 14–17. The Case of Yolande Turner: Pioneering 30 Health Goes International Pioneering Health is a small organization based outside Chicago and consisting of 300 people. Headed by founder and CEO Yolande Turner, a former
  • 36. pharmaceutical-product line manager, the company sells disease management strategies to other health …