This document provides an overview and summary of the 7th edition of the textbook "Management and Organisational Behaviour" by Laurie J. Mullins. The summary includes: 1. The book guides students to understand organisational behaviour and relates this to effective management practice. It acts as a comprehensive reference. 2. The book covers topics such as management theory, approaches to organisations, individual and group behaviour, organisational structure, human resource management, and improving organizational performance. 3. New to this edition is expanded coverage of areas like leadership, change management, knowledge management and the impact of technology and globalization.

1. This market leading text guides students to a thorough understanding of organi-
sational behaviour and relates this to effective management practice. It is an
invaluable resource, which provides a clear and insightful introduction to
MANAGEMENT
management studies and acts as a comprehensive point of reference thereafter.
AND ORGANISATIONAL
BEHAVIOUR
LAURIE J. MULLINS
SEVENTH EDITION
Additional student support at
www.booksites.net/mullins

2. MANAGEMENT AND
ORGANISATIONAL BEHAVIOUR
Visit the Management and Organisational Behaviour, Seventh
Edition Companion Website at
www.booksites.net/mullins to find valuable student learning
material including:
■ Multiple choice and short answer questions to help test your learning
■ Technology Solutions – short web articles which explore further the
managerial implications of technology
■ Weblinks to relevant sites on the web
■ An online glossary to explain key terms

3. About the author
Laurie J. Mullins was formerly principal lecturer at The Business School, University
of Portsmouth. Before taking early retirement, Laurie specialised in managerial
and organisational behaviour, and managing people at work, and was subject
leader for the behavioural and human resource management group.
Laurie had previous experience of business, local government and university
administration and human resource management. For a numbr of years he was
also a member of, and an instructor in, the Territorial Army.
He has undertaken a range of consultancy work; served as a visiting selector
for UNAIS and VSO; acted as advisor and tutor for a number of professional and
educational bodies including UNISON Education; and served as an external
examiner for university degree and postgraduate courses, and for professional
organisations.
Laurie has undertaken a year’s academic exchange in the Management
Department, University of Wisconsin, USA, and a visiting fellowship at the School
of Management, Royal Melbourne Institute of Technology (RMIT) University,
Australia, and given invited lectures in The Netherlands and South Africa. Laurie
is also author of Hospitality Mangement and Organisational Behaviour.
About the contributors
Linda Hicks is a Chartered Occupational Psychologist who specialises in
management development and coaching within her consultancy ‘Zest for Change’.
David Preece is Professor of Technology Management and Organisation Studies in
The Business School, University of Teesside.

4. Seventh Edition
MANAGEMENT AND
ORGANISATIONAL
BEHAVIOUR
Laurie J. Mullins
Formerly, Principal Lecturer
The Business School
University of Portsmouth

5. To Pamela
And for Kerrie and Tracey,
and Paul
Pearson Education Limited
Edinburgh Gate
Harlow
Essex CM20 2JE
England
and Associated Companies throughout the world
Visit us on the World Wide Web at:
www.pearsoned.co.uk
First published in 1985 in Great Britain under the Pitman imprint
Fifth edition published in 1999 by Financial Times Pitman Publishing imprint
Sixth edition 2002
Seventh edition 2005
© Laurie J Mullins 1985, 1989, 1993, 1996, 1999, 2002, 2005
© Chapter 9 Linda Hicks 1993, 1996, 1999, 2002, 2005
© Chapter 10 Linda Hicks 1999, 2002, 2005
© Chapter 17 David Preece 1999, 2002, 2005
The right of Laurie J Mullins to be identified as author of this work has been asserted
by him in accordance with the Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval
system, or transmitted in any form or by any means, electronic, mechanical,
photocopying, recording, or otherwise, without either the prior written permission of the
publisher, or a licence permitting restricted copying in the United Kingdom issued by the
Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London W1T 4LP.
All trademarks used herein are the property of their respective owners. The use of any
trademark in this text does not vest in the author or publisher any trademark ownership
rights in such trademarks, nor does the use of such trademarks imply any affiliation with
or endorsement of this book by such owners.
ISBN 0 273 68876 6
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library.
Library of Congress Cataloging-in-Publication Data
Mullins, Laurie J.
Management and organisational behaviour / Laurie J. Mullins.--7th ed.
p. cm
Includes bibliographical references and index.
ISBN 0–273–68876-6 (pbk.)
1. Organizational behavior. I. Title
HD58.7.M85 2004
658--dc22
2004046919
10 9 8 7 6 5 4 3 2
09 08 07 06 05
Typeset by 30 in Stone Serif
Printed and bound by Mateu-Cromo, Artes Graficas, Spain
The publisher’s policy is to use paper manufactured from sustainable forests.

6. CONTENTS IN BRIEF
Part 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR 1
1 Introduction 3
2 The Nature of Organisational Behaviour 25
3 Approaches to Organisation and Management 65
Part 2 THE ORGANISATIONAL SETTING 111
4 The Nature of Organisations 113
5 Organisational Goals, Strategy and Responsibilities 144
Part 3 THE ROLE OF THE MANAGER 187
6 The Nature of Management 189
7 Managerial Behaviour and Effectiveness 236
8 The Nature of Leadership 280
Part 4 THE INDIVIDUAL 333
9 Individual Differences 335
10 The Nature of Learning 389
11 The Process of Perception 434
12 Work Motivation and Rewards 470
Part 5 GROUPS AND TEAMWORK 515
13 The Nature of Work Groups and Teams 517
14 Working in Groups and Teams 554
Part 6 ORGANISATIONAL STRUCTURES 593
15 Organisation Structure and Design 595
16 Patterns of Structure and Work Organisation 633
17 Technology and Organisations 662
Part 7 MANAGEMENT OF HUMAN RESOURCES 697
18 Job Satisfaction and Work Performance 699
19 Human Resource Management 746
20 Resourcing the Organisation 795
Part 8 IMPROVING ORGANISATIONAL PERFORMANCE 829
21 Organisational Control and Power 831
22 Organisation Development (Culture, Conflict and Change) 887
23 Management Development and Organisational Effectiveness 941

7. ‘OH, GREAT SPIRIT,
GRANT THAT I MAY NOT
CRITICISE MY NEIGHBOURS
UNTIL I HAVE WALKED A MILE
IN THEIR MOCCASINS.’
Traditional Native-American saying

8. CONTENTS IN DETAIL
Exhibits, Management in Action, Case Studies and 3 Approaches to Organisation and
Business Press xiv Management 65
In acknowledgement and appreciation xvii
Management theory 66
Publisher’s acknowledgements xviii
Developments in management and organisational
Guided tour of the book xx
behaviour 66
Guided tour of the Companion Website xxii
The classical approach 67
Scientific management 69
Relevance of scientific management 71
Part 1 Bureaucracy 74
MANAGEMENT AND ORGANISATIONAL Criticisms of bureaucracy 75
BEHAVIOUR Evaluation of bureaucracy 76
Structuralism 78
1 Introduction 3 The human relations approach 78
About this book 4 Evaluation of the human relations approach 80
The aims of this book 4 Neo-human relations 81
The seventh edition 6 The systems approach 82
Your study of the book 16 The contingency approach 84
The changing nature of work organisation 17 Other approaches to the study of organisations 84
The study of management and organisational The decision-making approach 85
behaviour 19 Social action 85
The use of case studies 20 A number of different approaches 87
Postmodernism 87
2 The Nature of Organisational Relevance to management and organisational
behaviour 89
Behaviour 25
Japanese management 90
The meaning of organisational behaviour 26
Towards a scientific value approach? 91
Influences on behaviour in organisations 27
Benefits to the manager 93
Behavioural science – a multidisciplinary approach 29
Management in Action 3.1: Japanese management 95
The importance of people and organisational
Case study 3.1: Helgaton Ltd: organisational theory
behaviour 30
in practice 102
Organisational metaphors 32
Orientations to work and the work ethic 33
Management as an integrating activity 34
The psychological contract 37 Part 2
Changing nature of the psychological contract 39 THE ORGANISATIONAL SETTING
Organisational practices 40
The Peter Principle 40
Parkinson’s Law 41
4 The Nature of Organisations 113
The need for a cross-cultural approach 42
Is organisational behaviour culture-bound? 43 The context of the organisation 114
Models for understanding the impact of culture 44 The formal organisation 115
Five dimensions of culture: the contribution of Basic components of an organisation 117
Hofstede 47 Private and public sector organisations 118
Cultural diversity: the contribution of Trompenaars 49 Production and service organisations 120
Summary: convergence or culture-specific Types of authority and organisations 121
organisational behaviour 51 The classification of organisations 122
Case study 2.1: Eric and Kipsy: complexities of Prime beneficiary of the organisation 122
management and organisational behaviour 56 Primary activity of the organisation 123

9. viii CONTENTS IN DETAIL
The organisation as an open system 124 Principles of management 197
Interactions with the environment 126 Management as a social process 199
The comparative study of organisations 127 The tasks and contribution of a manager 199
Organisational sub-systems 128 Essential nature of managerial work 200
The analysis of work organisations 129 The efforts of other people 202
Contingency models of organisation 131 Management in service industries 203
The influence of technology 132 Management in private enterprise and public
Information technology 133 sector organisations 203
Managing technical change 134 The work of a manager 206
The informal organisation 134 Managerial roles 207
The organisation of the future 137 Behaviour pattern of general managers 209
Organisational goals 137 Determining what real managers do 210
Patterns of managerial work and behaviour 210
5 Organisational Goals, Strategy and The attributes and qualities of a manager 211
Managers of the future? 214
Responsibilities 144
Management in Action 6.1: The roles of the
The nature of organisational goals 145
manager and the Individual Management Model 217
The functions of goals 146
Case study 6.1: What is management? Defining
Integration of goals 147
the manager’s role 227
Classification of organisational goals 148
Alteration of goals 149
Organisational ideologies and principles 150
7 Managerial Behaviour and
Mission statements 151 Effectiveness 236
Managerial style and behaviour 237
Objectives and policy 152
Managers’ attitude towards people 238
The profit objective 154
Japanese ‘Theory Z’ environment 240
Fallacy of the single objective 155
The Managerial/Leadership Grid® 241
The need for strategy 157
Framework for patterns of behaviour 243
The concept of synergy 158
Management systems 245
SWOT analysis 159
System 4 management 246
The management of opportunities and risks 160
Management by Objectives (MBO) 249
Social responsibilities of organisations 161
Evaluation of MBO 250
Codes of conduct 162
Managing people 251
Organisational stakeholders 163
Basic managerial philosophies 252
Values and ethics 166
Choice of managerial style 256
Corporate social responsibility 167
Managerial effectiveness 259
Business ethics 168
Measures of effectiveness 261
Related legislation 170
3-D model of managerial behaviour 261
An integrated approach 171
General criteria of managerial effectiveness 264
Management in Action 5.1: IBM Code of Conduct 177
The management of time 265
Case study 5.1: Mergers and acquisitions: the
Case example: Chemical company 274
consequences of expansion at Square Deal plc 182
Case study 7.1: Bringing management to book:
Case study 5.2: Welcome to the party: home selling
how to manage a library 275
with Top-to-Toe 183
Case study 7.2: As safe as houses: branch
management in a building society 276
Part 3 8 The Nature of Leadership 280
THE ROLE OF THE MANAGER The meaning of leadership 281
The importance of leadership 282
Leadership and management 283
6 The Nature of Management 189 Approaches to leadership 285
The meaning of management 190 The qualities or traits approach 287
Management and administration 194 The functional (or group) approach 287
The process of management 195 Leadership as a behavioural category 289

10. CONTENTS IN DETAIL ix
Styles of leadership 291 Career development 372
Continuum of leadership behaviour 292 Leadership, management and women 376
The situational approach 294 Positive approaches 378
Contingency theories of leadership 295
Fiedler’s contingency model 295 10 The Nature of Learning 389
Vroom and Yetton contingency model 297 By Linda Hicks
The Vroom and Jago revised decision model 298 The meaning and nature of learning 390
Path–goal theory 299 Organisations and the management of learning 394
Readiness of the followers or group 300 Knowledge management 395
Transformational leadership 301 The learning organisation 399
Inspirational leadership 304 How do people learn? 402
Power and leadership influence 306 Behaviourism 403
The leadership relationship 307 The outcomes of learning 405
No one best form of leadership 309 Operant conditioning 405
National cultural dimensions of leadership 310 Social learning 408
Effectiveness of leadership styles 312 Limitations of the behaviourist school 408
Variables affecting leadership effectiveness 313 Cognitive theories 409
Leadership development 314 Learning styles 413
Leaders of the future 315 Complex models of learning 414
Management in Action 8.1: Autoglass: Leadership Creativity 415
success factors 317 Facilitating learning 417
Management in Action 8.2: IBM Leadership Learning theory applied to study skills 420
Development Centre (LDC) 318 Applications of learning theory to organisations 420
Case study 8.1: The paradox of Pim Fortuyn: a study Case study 10.1: Springboard to success: staff
in charismatic leadership 327 development in practice 425
Case study 10.2: Will the mail get through:
managing change at the Royal Mail 427
PART 4
11 The Process of Perception 434
THE INDIVIDUAL
By Laurie Mullins and Linda Hicks
The perceptual process 435
Selectivity in attention and perception 435
9 Individual Differences 335 Meaning to the individual 437
By Linda Hicks Internal factors 437
The changing nature and scope of managing External factors 440
individuals at work 336 Organisation and arrangement of stimuli 441
Personality 339 Perceptual illusions 442
Nomothetic and idiographic approaches 342 Perceiving other people 445
Theoretical approaches: nomothetic 343 Transactional analysis 448
Theoretical approaches: idiographic 346 Selection and attention 450
Other theoretical approaches 347 Organisation and judgement 452
Cognitive theory: Kelly’s personal construct theory 350 The importance of body language 453
Applications within the work organisation 352 Attribution theory 455
Stress and the individual 354 Perceptual distortions and errors 456
Ability 355 Stereotyping 457
Testing 360 The halo effect 458
Attitudes 362 Perceptual defence 459
Gender and organisations 366 Projection 459
Understanding women’s position and status 368 Illustrative example: perception of women 459
Economic theories 369
Psychological sex differences 369 12 Work Motivation and Rewards 470
The socialisation process 370 The meaning of motivation 471
Orientations and motivations towards work 370 Needs and expectations at work 472
Working practices 371 Motivation and organisational performance 474

11. x CONTENTS IN DETAIL
Frustration-induced behaviour 475 14 Working in Groups and Teams 554
Money as a motivator 477 Interactions among members 555
Theories of motivation 478 Belbin’s team-roles 556
Content theories of motivation 480 Patterns of communication 559
Maslow’s hierarchy of needs theory 478 Analysis of individual behaviour 562
Alderfer’s modified need hierarchy model 484
Sociometry 562
Herzberg’s two-factor theory 485
Interaction analysis 563
McClelland’s achievement motivation theory 487
Frameworks of behavioural analysis 565
Process theories of motivation 489
An essential feature of work organisations 566
Vroom’s expectancy theory 490
Individual compared with group or team performance 569
The Porter and Lawler expectancy model 492
Lawler’s revised expectancy model 494 The risky-shift phenomenon 569
Implications for managers of expectancy theories 495 ‘Groupthink’ 570
Equity theory of motivation 496 Brainstorming 570
Goal theory 498 Group dynamics 573
Attribution theory 499 T-groups 574
Relevance of theories of motivation 499 Effective teamworking 575
Cross-cultural dimensions of motivation 500 Management in Action 14.1: Profiling of managers for
The motivation of knowledge workers 500 leadership development in a cross-section of South
Management in Action 12.1: Developing reward African organisations 579
strategies to motivate and compensate Management in Action 14.2: Barriers come down
knowledge workers 504 to build up team spirit 585
Case study 12.1: Staff motivation: not so much a
motivational pyramid, more a slippery slope 510
PART 6
PART 5 ORGANISATIONAL STRUCTURES
GROUPS AND TEAMWORK
15 Organisation Structure and Design 595
13 The Nature of Work Groups The meaning and nature of organisation structure 596
and Teams 517 The importance of good structure 597
The meaning and importance of groups and teams 518 Levels of organisation 598
The difference between groups and teams 518 The importance of the hierarchy 600
Group values and norms 520 The design of organisation structure 601
The importance of teamwork 521 Clarification of objectives 603
Formal and informal groups 525 Task and element functions 604
Reasons for formation of groups or teams 527 The division of work 605
Group cohesiveness and performance 528 Centralisation and decentralisation 608
Membership 529 Principles of organisation 609
Work environment 530 Span of control 610
Organisational factors 531 The chain of command 611
Group development and maturity 531
‘Flatter’ organisation structures 612
Potential disadvantages of strong, cohesive groups 532
Formal organisational relationships 613
Characteristics of an effective work group 533
Line and staff organisation 615
The effects of technology on work groups 534
The inverted organisation 617
Role relationships 536
Role conflict 538 Project teams and matrix organisation 617
Role stress 540 Effects of a deficient organisation structure 619
Management in Action 13.1: Teamwork in a small Organisation charts 621
company 543 Structure and organisational behaviour 622
Management in Action 13.2: Remote control – a Case study 15.1: A small cog in a big wheel:
case study 545 company restructuring at Zeton 629
Case study 13.1: Floating on air: the importance Case study 15.2: Loud and clear: leadership in
of teamwork at Hovertec 550 telecommunications 630

12. CONTENTS IN DETAIL xi
16 Patterns of Structure and Work Stress at work 706
Organisation 633 Role relationships and conflict 708
Variables influencing organisation structure 634 Levels of stress 709
The contingency approach 634 Coping with stress 710
Size of organisation 635 Work organisation and job design 713
Individual job redesign 714
Technology 638
A comprehensive model of job enrichment 715
The Woodward study 638
Broader organisational approaches to improved
Major dimensions of technology: the work of Perrow 640
job design 717
Environment 641
The work/life balance 720
The Burns and Stalker study 642
Employee involvement 722
‘Mixed’ forms of organisation structure 643
Empowerment and job satisfaction 723
The Lawrence and Lorsch study 644
Self-managed work groups 723
Evaluation of the contingency approach 646 Flexible working arrangements 724
Contribution of contingency theory 648 Quality circles 727
Culture as a contingent factor 649 Management style and culture 728
Alternative forms of structure 649 Contextual factors in job design 728
The demand for flexibility 651 The happy/productive worker 729
Telecommuting 652 Management in Action 18.1: Job satisfaction: the
The shamrock organisation 652 fit between expectations and experiences 732
The nature of delegation and empowerment 654 Management in Action 18.2: An elusive but
Case study 16.1: Bureaucracy could seriously damage expensive concept: stress 733
your health: staff empowerment at City Hospital 658 Management in Action 18.3: Work-Life Balance
Case study 16.2: Could I have an estimate? case studies 735
Organisational structure at Fabrique Décor 658 Management in Action 18.4: Beyond the
nine-to-five 736
17 Technology and Organisations Case study 18.1: The wide open spaces: linking
By David Preece 662 job satisfaction and work performance 741
Theorising technology 663 Case study 18.2: The changing role of supervisors:
Using a socio-technical ensemble perspective: demonstrating the effect of communication
the case of Butler Co. 669 and training on morale 742
Technological change and organisations 672 Case study 18.3: Flying like the wind: motivation,
Adopting and introducing new technology 674 job design and culture at Falcon Car Company 743
Case studies in technological/organisational
change 679
19 Human Resource Management 746
The nature of human resource management (HRM) 747
Case study 17.1: A thirst for technology: new systems
HRM policies, activities and functions 749
at the bars of Tawny Taverns 679
Organisation of the HRM function 751
Case study 17.2: Web page not found: internal
HRM: a shared responsibility 752
communications at Redstart Computers 682
The importance of HRM 755
Organisational contexts, social and political
Training and development 756
processes and technological change 685
The management of training 758
ICTs, networks, organisations and society 686
Investors in People 761
Performance appraisal 762
Questions to be addressed 764
PART 7
360° feedback and upward appraisal 765
MANAGEMENT OF HUMAN RESOURCES Establishing the appraisal system 766
Methods of appraisal 767
Potential problem areas 769
18 Job Satisfaction and Work Employment relations 771
Performance 699 Unitary and pluralistic perspectives 773
The meaning and nature of job satisfaction 700 Regulating the employment contract 774
Dimensions of job satisfaction 700 Responsibility for employment relations 777
Framework of study 703 International dimensions of HRM 778
Information communications technology 703 Industrial democracy in European countries 779

13. xii CONTENTS IN DETAIL
The German system 779 Characteristics of an effective control system 842
Effectiveness of the HRM function 780 Power and management control 843
Management in Action 19.1: The Investors in People Perspectives of organisational power 845
Standard 783 Pluralistic approaches to power 846
Management in Action 19.2: Performance The balance between order and flexibility 848
management at Autoglass Limited 786 Delegation and empowerment 849
Case study 19.1: Beer and sandwiches: personnel The manager–subordinate relationship 850
management at London Taverns 790 Benefits of delegation 852
Case study 19.2: Nothing succeeds like success: Reasons for lack of delegation 853
accelerating performance at Sisson Systems 791 A systematic approach to delegation 854
The art of delegation 857
20 Resourcing the Organisation 795 The concept of empowerment 859
The concern of all managers 796 Does empowerment deliver? 863
Human resource planning 796 Behavioural factors in control systems 864
The value of human resource planning 798 Overcoming resistance to management control 865
Recruitment and selection of staff 800 Financial and accounting systems of control 867
Job analysis 802 Management in Action 21.1: Empowerment 873
Person specifications 804 Case study 21.1: The enthusiastic delegator:
Difficulties and distastes of the job 804 the consequences of promoting beyond ability? 880
The importance of job analysis 806 Case study 21.2: Alpha to Omega: the effects
Attracting suitable applicants 806 of financial management on company
The selection process 808 performance 883
Selection tests and questionnaires 810
Group exercises 810 22 Organisation Development
The selection interview 812 (Culture, Conflict and Change) 887
Interviewing style 813 The meaning of organisation development 888
Competency-based approach to recruitment and Topics associated with OD 888
selection 814 Organisational culture 891
The selection decision 815 Types of organisational culture 892
Induction and follow-up 816 Influences on the development of culture 894
Costs of the selection process 817 The cultural web 895
Effectiveness of the recruitment and selection The importance of culture 896
process 817 Organisational climate 899
Management in Action 20.1: Marks & Spencer Employee commitment 901
PLC’s graduate selection process 821 Organisational conflict 903
Case study 20.1: Please enter your password: Contrasting views of conflict 904
effective resource management at Wessex The sources of conflict 906
Computers 825 Strategies for managing conflict 908
Case study 20.2: Inky fingers: HRM failure at The nature of organisational change 909
Sumprint Ltd 826 Planned organisational change 910
Resistance to change 913
The management of organisational change 915
Human and social factors of change 916
PART 8
Responsibilities of top management 920
IMPROVING ORGANISATIONAL Management in Action 22.1: Organisational culture,
PERFORMANCE change and IT in an SME 923
Management in Action 22.2: Siemens Nixdorf’s
21 Organisational Control and Power 831 new dynamism 924
The meaning of control 832 Case study 22.1: It’s tough at the top: managing
Assumptions of organisation and management 834 conflict in the Wakewood organisation 933
Elements of an organisational control system 835 Case study 22.2: Getting political: management
Forms of control 837 in local government 934
Classification of control systems 838 Case study 22.3: A matter of life or death: managing
Strategies of control in organisations 840 knowledge at an NHS Trust 935

14. CONTENTS IN DETAIL xiii
23 Management Development and Benchmarking 976
Organisational Effectiveness 941 Performance indicators in the public sector 977
The importance of effective management 942 Gap analysis 977
The meaning and nature of management A range of different criteria 977
development 942 The twenty-first century organisation and people 980
An integrated model of management development 944 Management in Action 23.1: Extracts from Abbey
Management development process 949 Performance Development Programme 982
Continuing professional development (CPD) 953 Management in Action 23.2: A cure for growing
Management education, training and development 954 pains – Costa Coffee 985
The Management Charter Initiative (MCI) 955 Management in Action23.3: Components of the
Leadership and Management Model 956 Management Standards 987
The nature of organisational effectiveness 959 Management in Action 23.4: Building organisational
The Peters and Waterman study 960 competence 988
Heller’s study of European excellence 961 Case study 23.1: Chips with everything: managing
The Goldsmith and Clutterbuck study 962 cultural change at Eurasia Electronics 997
The learning organisation 962 Case study 23.2: Holding the front page: expansion
Total Quality Management (TQM) 964 at Rudmore Press 997
Business process re-engineering (BPR) 968
Building Tomorrow’s Company 971 Conclusion 1003
The EFQM excellence model 971 Business Press 1005
Assessing organisational performance 975 Glossary 1051
Organisation audit 976 Index 1065
Companion Website resources
Visit the Companion Website at www.booksites.net/mullins
For students:
■ Multiple choice and short answer questions to help test your learning
■ Technology Solutions – short web articles which explore further the managerial
implications of technology
■ Weblinks to relevant sites on the web
■ An online glossary to explain key terms
For lecturers:
■ Complete, downloadable Instructor’s Manual which includes:
– Teaching tips
– Extra cases
– Solutions/examples to discussion and other questions
■ Powerpoint slides that can be downloaded and used as OHTs
■ Testbank of question material
Also: This site has a syllabus manager, search functions, and email results functions.
Note: A printed version of the Instructor’s Manual is also available free to adopters
of Management and Organisational Behaviour. Please contact your local sales
representative whose details can be located on our website www.pearsoned.co.uk

15. EXHIBITS, MANAGEMENT IN ACTION, CASE STUDIES
AND BUSINESS PRESS
Exhibits
3.1 NHS pays £30.96 just to sharpen pencils 76
3.2 Tools that do the business: management theories 91
5.1 Business ethics: what’s in it for you? 171
6.1 The infant school headteacher as a manager 191
7.1 It’s a people thing 258
8.1 Developing leadership in the NHS of the 21st century 305
8.2 First class coach 312
9.1 Why use psychological tests? 362
10.1 Learning new skills: the importance of feedback 410
11.1 Hospitals set to play it by ethnic book 454
11.2 Judy Owen wins battle against Professional Golfers’ Association to 460
wear trousers
13.1 Teamwork’s own goal 524
14.1 Management: brainstorm in a rainstorm 573
18.1 If you want people to do a good job, give them a good job to do 719
18.2 Have a life and keep your job 725
21.1 Empowerment and the custody officer 861
23.1 Developing managers: applying the theory in practice 950
23.2 Management succession: developing leadership at 3M 952
23.3 Quality counts: TQM in an NHS trust 968
Management in Action
3.1 Japanese management 95
5.1 IBM Code of Conduct 177
6.1 The roles of the manager and the Individual Management Model 217
8.1 Autoglass: Leadership success factors 317
8.2 IBM Leadership Development Centre (LDC) 318
12.1 Developing reward strategies to motivate and compensate knowledge
workers 504
13.1 Teamwork in a small company 543
13.2 Remote control – a case study 545
14.1 Profiling of managers for leadership development in a cross-section of 579
South African organisations
14.2 Barriers come down to build up team spirit 585
18.1 Job satisfaction: the fit between expectations and experiences 732
18.2 An elusive but expensive concept: stress 733
18.3 Work-Life Balance case studies 735
18.4 Beyond the nine-to-five 736
19.1 The Investors in People Standard 783
19.2 Performance management at Autoglass Limited 786
20.1 Marks & Spencer PLC’s graduate selection process 821
21.1 Empowerment 873
22.1 Organisational culture, change and IT in an SME 923
22.2 Siemens Nixdorf’s new dynamism 924

16. LIST OF FIGURES xv
23.1 Extracts from Abbey Performance Development Programme 982
23.2 A cure for growing pains – Costa Coffee 985
23.3 Components of the Management Standards 987
23.4 Building organisational competence 988
Case studies
2.1 Eric and Kipsy: complexities of management and organisational behaviour 56
3.1 Helgaton Ltd: organisational theory in practice 102
5.1 Mergers and acquisitions: the consequences of expansion at Square Deal plc 182
5.2 Welcome to the party: home selling with Top-to-Toe 183
6.1 What is management? Defining the manager’s role 227
Chemical company 274
7.1 Bringing management to book: how to manage a library 275
7.2 As safe as houses: branch management in a building society 276
8.1 The paradox of Pim Fortuyn: a study in charismatic leadership 327
10.1 Springboard to success: staff development in practice 425
10.2 Will the mail get through: managing change at the Royal Mail 427
12.1 Staff motivation: not so much a pyramid, more a slippery slope 510
13.1 Floating on air: the importance of teamwork at Hovertec 550
15.1 A small cog in a big wheel: company restructuring at Zeton 629
15.2 Loud and clear: leadership in telecommuncations 630
16.1 Bureaucracy could seriously damage your health: staff empowerment at City Hospital 658
16.2 Could I have an estimate? Organisational structure at Fabrique Décor 658
17.1 A thirst for technology: new systems at the bars of Tawny Taverns 679
17.2 Web page not found: internal communications at Redstart Computers 682
18.1 The wide open spaces: linking job satisfaction and work performance 741
18.2 The changing role of supervisors: demonstrating the effect of communication
and training on morale 742
18.3 Flying like the wind: motivation, job design and culture at Falcon Car Company 743
19.1 Beer and sandwiches: personnel management at London Taverns 790
19.2 Nothing succeeds like success: accelerating performance at Sisson Systems 791
20.1 Please enter your password: effective resource management at Wessex Computers 825
20.2 Inky fingers: HRM failure at Sumprint Ltd 826
21.1 The enthusiastic delegator: the consequences of promoting beyond ability? 880
21.2 Alpha to Omega: the effects of financial management on company performance 883
22.1 It’s tough at the top: managing conflict in the Wakewood organisation 933
22.2 Getting political: management in local government 934
22.3 A matter of life or death: managing knowledge at an NHS trust 935
23.1 Chips with everything: managing cultural change at Eurasia Electronics 997
23.2 Holding the front page: expansion at Rudmore Press 997
Business Press
1 A safe way to hold on to staff 1006
2 Business schools share Enron blame 1007
3 Recruitment: facing the next brain drain 1008
4 Companies pressed to adopt higher standards 1010
5 Forget how the crow flies 1012
6 Public sector: go home and prepare for e-government 1017
7 Employees as investors 1019
8 Leader of the band who likes to run the show 1020
9 Great leaders: pioneer and a shrewd strategist 1022

17. xvi LIST OF FIGURES
10 Endangered species 1023
11 Mentoring moves into a leading role 1025
12 Driving your employees up the wall 1027
13 A focus on workers’ individual needs 1028
14 Advantages of promoting a boutique mindset 1029
15 Avoiding the madness of groupthink 1030
16 End to ‘departmentalism’ a vision of things to come 1031
17 A long-distance relationship 1032
18 Network protection is a key stroke 1034
19 Relentless rise of the pleasure seekers 1035
20 EU & US: Where are the best workplaces? 1037
21 Marrying performance with reward 1038
22 Human capital: is it ‘personnel’ with yet more make-up? 1040
23 New learning models are under scrutiny 1041
24 Patterns can show if you are up to the job 1043
25 Massive US effort to set up control systems 1044
26 Asda: the listening store 1045
27 Organisations, too, can be put on the couch 1047
28 Swiss group at top of learning tree 1048
29 The rise and rise of the corporate learning officer 1049

18. IN ACKNOWLEDGEMENT AND APPRECIATION
A warm and special tribute is paid to my wife Pamela, children and family for their
continuing support and encouragement for this seventh edition.
Particular acknowledgements and thanks are due for the contributions from my
friends and colleagues Linda Hicks, David Preece and Sara Lamond.
Thanks and appreciation also to Derek Adam-Smith, Rajeev Bali, Martin Brunner,
Richard Christy, Ray French, Karen Meudell, Anne Riches, Amanda Stevens, Lynn
Thomson, Cheryl Walmsley.
I gratefully acknowledge the help and support received from:
Managers who kindly provided information from their own organisations and gave
permission to reproduce material in the book
Aileen Cowan, Assistant Director, The Institute of Chartered Secretaries and
Administrators
Liz Harris, Marketing Communications Manager, The Institute of Administrative
Management
Rebecca Hoar, Section Editor, Management Today
Sue Mann, Editor, Professional Manager.
A special debt of appreciation is due to members of the team at Pearson Education
including Matthew Walker, Colin McDougall, Karen McLaren, Janey Webb, Colin Reed,
Jacqueline Senior and Simon Lake for their invaluable professionalism and guidance.
Thank you all for a pleasant and rewarding partnership.
I wish to acknowledge and thank a number of people who may be unaware how
much their friendship, interest and support has in a variety of ways helped in the com-
pletion of this seventh edition, including: Stephen Darvill; Philip Voller; Kate
Brackenbury; Valerie and Peter Hallam; Di and Mike Blyth; Julie and John Bradley;
Jenny and Tony Hart; Vilma and Will Hemsley; Lynn and Wayne Miller; Christine and
David Paterson; Ann Ward.
Reviewers
Special thanks are due to the following reviewers, approached by the publishers, for
their valued insightful and constructive comments that have helped shape the con-
tents of this present edition:
Ann Norton, Sheffield Hallam University, UK
Brian Stone, Manchester Metropolitan University, UK
Kim Parker, University of Kent, UK
Bob Smale, Brighton University, UK
Alasdair Maclean, University of Abertay, UK
Peter Falconer, Glasgow Caledonian University, UK
Hugo Misselhorn, Management & Organisation Development Consulting, South Africa
Marijek Dielman, Hotel Management School, Maastricht, The Netherlands
David Wilson, Wethouder Koniglaan, The Netherlands.
Laurie J Mullins

19. PUBLISHER’S ACKNOWLEDGEMENTS
Chapter 1 – Introductory assignment is reprinted with per- Chapter 7 – Assignment 1 ‘Principle of Supportive
mission from Von Oech, R., A Whack On The Side Of The Relationships Questionnaire’ is reprinted with permission
Head, Warner Books Inc. (1998), p. 20. Copyright © 1983, from Likert, R., The Human Organization – Its Management
1990, 1998 by Roger Von Oech. and Value, McGraw-Hill, New York (1976), pp. 48–9.
Chapter 2 – Assignment 1 is reprinted with permission Personal awareness and skills exercise ‘Your Management
from Rowe, C., The Management Matrix: The Psychology of Style’ is reprinted with permission from Osland, J. S., Kolb,
Interaction, Alfred Waller Ltd (1992), p. 1, with permission D. A. and Rubin, I. M., Organizational Behavior: An
from Patricia Rowe. Experimental Approach, seventh edition, Prentice Hall
(2001), pp. 24–5.
Personal awareness and skills exercise ‘So What’s Your
Work Ethic?’ is reprinted with permission from Professional Case study 7.1 ‘Library Management’ is reprinted with per-
Manager, published by the Chartered Management mission from the Institute of Chartered Secretaries and
Institute, May 2003, p. 38, and Walmsley, C. J., Your Future Administrators, Management Principles Pilot Paper,
Looks Bright, Preston Beach (2002), p. 98. Administrator, December 1993. (Administrator is now pub-
lished under the title Chartered Secretary.)
Case study 2.1 ‘Eric and Kipsy’ is reprinted with permission
from Porter, L. W., Lawler, E. E. and Hackman, J. R., Behavior Chapter 8 – Assignment 1 ‘Least Preferred Co-worker (LPC)
in Organizations, McGraw-Hill, New York (1975), pp. 3–14. Scale’ is reprinted from A Theory of Leadership Effectiveness,
McGraw-Hill (1976), p. 41, with the permission of the
Chapter 3 – Assignment 1 is reprinted with permission
author, Professor F. E. Fiedler, University of Washington.
from DuBrin, A. J., Human Relations: A Job-Oriented
Approach, Reston Publishing/Prentice Hall/Pearson Assignment 2 ‘T-P Leadership Questionnaire: An
Education Inc. (1978), pp. 296–7. Assessment of Style’ by Sergiovanni, T., Metzcus R. and
Burden, L. adapted from their article ‘Leadership Behavior
Case study 3.1 ‘Applications of Organisation Theory in
Description Questionnaire’, in the American Educational
Helgaton Ltd’, is reprinted with permission from Mullins,
Research Journal 6, 1969, is reprinted by permission of the
L. and White, I., in Adam-Smith, D. and Peacock, A. (eds),
publisher, the American Educational Research Association.
Cases in Organisational Behaviour, Pearson Education
(1994), pp. 19–29. Assignment 4 ‘Your Leadership Style’ is reprinted with per-
mission from Schermerhorn Jr, J. R., Hunt, J. G. and Osborn,
Chapter 4 – Assignment ‘Our Organizational Society: Your
R. N., Managing Organizational Behavior, fourth edition, used
Association with Organizations’ is reprinted with permis-
by permission of John Wiley & Sons Inc. (1991), p. 484.
sion from Kast, F. E. and Rosenzweig, J. E., Experiential
Exercises and Cases in Management, McGraw-Hill, New York Case study 8.1 ‘The Paradox of Pim Fortuyn: A Study in
(1976), pp. 13–15. Charismatic Leadership’. I am grateful to my colleague
Karen Meudell for providing this case study.
Chapter 5 – Personal awareness and skills exercise
‘Assessing your Work Values’ is reprinted with permission Chapter 10 – Case study 10.2 ‘Royal Mail: Making your life
from Misselhorn, A., The Head and Heart of Management, easier by helping you do a better job’. Thanks to Yasmin
Management and Organization Development Consultants Ahmed and Royal Mail Group plc.
(SA) (2003), p. 36.
Chapter 11 – Personal awareness and skills exercise
Case study 5.1 ‘Square Deal plc’ is reprinted with permis- ‘Inference–observation’ exercise is reprinted with permis-
sion from the Institute of Administrative Management, sion from Haney, W. V., Communications and Interpersonal
Diploma in Administrative Management Examination Relations: Text and Cases, sixth edition, Irwin, Illinois
Paper, Summer 1983. (1992), p. 213.
Case study 5.2 ‘Top to Toe’ is reprinted with permission Chapter 12 – Personal awareness and skills exercise con-
from the Chartered Institute of Secretaries and tributed by Sheila Ritchie of Elm Training and derived
Administrators, Management Principles Examination from the full 12-factor Motivation to Work Profile. It is
Paper, June 2003. reprinted with permission.
Chapter 6 – Assignment 2 ‘Have YOU Got What it Takes to Case study 12.1 ‘Not so Much a Motivational Pyramid,
be a CEO?’ is reprinted with permission from Gwyther, M., More a Slippery Slope’. I am grateful to Linda Fleming for
Management Today, November 2001, pp. 56–9. providing this case.
Case study 6.1 ‘What Is Management?’ from Doswell, R. Chapter 13 – The copyright of case study 13.1 ‘Hovertec
and Nailon, P., Case Studies in Hotel Management, third plc’ rests with my colleague Tom McEwan, and is reprinted
edition, Barrie & Jenkins (1976). with permission.

20. Chapter 14 – Personal awareness and skills exercise is Chapter 21 – ‘The Organisational Politics Questionnaire’ is
reprinted with permission from Woodcock, M., 50 reprinted with permission from DuBrin, A. J., Human
Activities for Teambuilding, Gower, Aldershot (1988), with Relations: A Job-Oriented Approach, fifth edition, Prentice
permission from Ashgate Publishing Limited. Hall/Pearson Education Inc. (1992), pp. 306–7.
Chapter 15 – Assignment 2 is reprinted with permission Case study 21.2 ‘The Omega organisation’ is reprinted with
from the Institute of Chartered Secretaries and permission of the Institute of Chartered Secretaries and
Administrators, Management Principles Examination Paper, Administrators, Management: Principles and Policy
June 1999. Examination Paper, June 1987.
Case study 15.1 ‘Zeton Ltd’ is reprinted with permission
Chapter 22 – Assignment ‘Rate Your Readiness to Change’
from Administrator, The Institute of Chartered Secretaries
is reprinted with permission from Stewart, T. A., Fortune, 7
and Administrators, April 1996, p. 36. (Administrator is
February 1994, pp. 63–4, Time Inc. All rights reserved.
now published under the title Chartered Secretary.)
Case study 15.2 ‘Direct Telecommunications PLC (DT)’ is Case study 22.1 ‘The Wakewood organisation’ is reprinted
reprinted with permission from the Institute of Chartered with permission from the Institute of Chartered Secretaries
Secretaries and Administrators, Organisation and the and Administrators, Management: Principles and Policy
Human Resource Examination Paper, May 2002. Examination Paper, December 1986.
Chapter 16 – Case study 16.1 ‘The City Hospital: Case study 22.2 ‘Gremby County Council’ is reprinted with
Bureaucracy and Empowerment’ is reprinted with permis- permission from Bowman, C. and Jarrett, M. G., Management
sion from the Institute of Chartered Secretaries and in Practice, third edition, Butterworth-Heinemann (1996),
Administrators, Organisation and the Human Resource pp. 209–11, with permission from Elsevier Ltd.
Examination Paper, November 2002.
Case study 22.3 ‘Managing Knowledge at an NHS Trust’. I
Case study 16.2 ‘Fabrique Décor’ is reprinted with permis- am grateful to Rajeev K. Bali and Ashish N. Dwivedi for
sion from the Institute of Administrative Management, providing this case.
Advanced Diploma Examination Paper, December 2000.
Chapter 23 – Assignment 2 ‘Assessing your Organisation’ is
Chapter 18 – Case study 18.1 ‘The Wide Open Spaces’ from
reprinted with permission from BBC, Building Tomorrow’s
Chilver, J., People, Communication and Organisation,
Company – Supporting Notes and the Centre for Tomorrow’s
Pergamon Press (1984), pp. 118–19.
Company and William Tate, 1999.
Case study 18.2 ‘Managing Supervisors’ is reprinted with
permission from the Institute of Chartered Secretaries and Personal awareness and skills exercise is adapted from
Administrators, Management: Principles and Policy material prepared by John Bourn for a UNISON distance
Examination Paper, June 1985. learning course and is used with permission of the
Education Officer.
Case study 18.3 ‘The Falcon Car Company’ is reprinted
with permission from the Institute of Chartered Secretaries Case study 23.1 ‘Eurasia Electronics’ is reprinted with per-
and Administrators, Organisation and the Human mission from the Institute of Chartered Secretaries and
Resource Examination Paper, June 2003. Administrators, Professional Administration Examination
Chapter 19 – Case study 19.1 ‘London Taverns Ltd’ has Paper, December 1999.
been prepared jointly with, and from original material sup- Case study 23.2 ‘Rudmore Press Limited’. This case was
plied by, my colleague Karen Meudell. prepared jointly with, and from original material provided
Case study 19.2 ‘Accelerating the performance momentum by, my colleague Karen Meudell.
at Sisson Systems’ is reprinted with permission from the
Institute of Chartered Secretaries and Administrators, DOGBERT character drawings copyright © 1991 United
Organisation and the Human Resource Examination Paper, Feature Syndicate, Inc.
June 1999.
Please note: we are all influenced by the thoughts and
Chapter 20 – Case study 20.1 ‘Wessex Computers’ is ideas of other people that tend to drift into the sub-
reprinted with permission from the Institute of conscious and are not always distinguished clearly from
Administrative Management, Certificate in Administrative one’s own. I have attempted to give references for sources
Management Examination Paper, Summer 1983. of work by other writers but apologise to any concerned if
Case study 20.2 ‘Sumprint Ltd’ is reprinted with permis- acknowledgement has inadvertently not been recorded.
sion from the Institute of Administrative Management, Should there by any queries, errors or omissions please
Case Study Examination Paper, June 2002. contact the publisher.

21. xx PART 1 PART TITLE