Organizational behavior,12th edition schermerhorn, osborn, hunt, uhl bien

Organizational behavior,12th edition schermerhorn, osborn, hunt, uhl bien Organizational behavior,12th edition schermerhorn, osborn, hunt, uhl bien Organizational behavior,12th edition schermerhorn, osborn, hunt, uhl bien Organizational behavior,12th edition schermerhorn, osborn, hunt, uhl bien Organizational behavior,12th edition schermerhorn, osborn, hunt, uhl bien Organizational behavior,12th edition schermerhorn, osborn, hunt, uhl bien Organizational behavior,12th edition schermerhorn, osborn, hunt, uhl bien

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12 th edition

ORGANIZATIONAL BEHAVIOR

Ohio University Wayne State University University of Nebraska Texas Tech University

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about the authors

Dr John R Schermerhorn, Jr is the Charles G O’Bleness Professor Emeritus of Management in the College of Business at Ohio University where he teaches undergraduate and MBA courses in management, organizational behavior, and Asian business He earned a Ph.D in organizational behavior from Northwestern University, after receiving an M.B.A (with distinction) in management and inter- national business from New York University, and a B.S in business administration from the State University of New York at Buffalo.

Dedicated to instructional excellence and serving the needs of practicing managers, Dr Schermerhorn focuses on bridging the gap between the theory and practice of management in both the classroom and in his textbooks He has won awards for teaching excellence at Tulane University, The University of Vermont,

and Ohio University, where he was named a University Professor, the university’s

leading campus-wide award for undergraduate teaching He also received the excellence in leadership award for his service as Chair of the Management Educa- tion and Development Division of the Academy of Management.

Dr Schermerhorn’s international experience adds a unique global dimension

to his teaching and textbooks He holds an honorary doctorate from the sity of Pécs in Hungary, awarded for his international scholarly contributions to management research and education He has also served as a Visiting Professor

Univer-of Management at the Chinese University Univer-of Hong Kong, as on-site Coordinator Univer-of the Ohio University MBA and Executive MBA programs in Malaysia, and as Kohei Miura visiting professor at the Chubu University of Japan Presently he is Adjunct Professor at the National University of Ireland at Galway, a member of the gradu- ate faculty at Bangkok University in Thailand, and Permanent Lecturer in the PhD program at the University of Pécs in Hungary.

An enthusiastic scholar, Dr Schermerhorn is a member of the Academy of Management, where he served as chairperson of the Management Education and

Development Division Educators and students alike know him as author of

Man-agement 11e (Wiley, 2011) and Exploring ManMan-agement 3e (2012), and senior

co-author of Organizational Behavior 12/e (Wiley, 2012) His many books are

available in Chinese, Dutch, French, Indonesian, Portuguese, Russian, and ish language editions Dr Schermerhorn’s published articles are found in the

Span-Academy of Management Journal, Span-Academy of Management Review Span-Academy of Management Executive, Organizational Dynamics, Journal of Management Edu- cation, and the Journal of Management Development.

Dr Schermerhorn is a popular guest speaker at colleges and ties His recent student and faculty workshop topics include innovations in business education, teaching the millennial generation, global perspectives

universi-in management education, and textbook writuniversi-ing and scholarly manuscript development.

Dr John R

Schermerhorn, Jr

vi About the Authors

The late Dr James G ( Jerry) Hunt was the Paul Whitfi eld Horn Professor of Management, Professor of Health Organization Management, Former Director, Institute for Leadership Research, and former department Chair of Manage- ment, Texas Tech University He received his Ph.D and master’s degrees from the University of Illinois after completing a B.S (with honors) at Michigan Technological University Dr Hunt co-authored an organization theory text

and Core Concepts of Organizational Behavior (Wiley, 2004) and authored or

co-authored three leadership monographs He founded the Leadership posia Series and co-edited the eight volumes based on the series He was the

Sym-former editor of the Journal of Management and The Leadership Quarterly

He presented or published some 200 articles, papers, and book chapters, and

among his better-known books are Leadership: A New Synthesis, published

by Sage, and Out-of-the-Box Leadership, published by JAI The former was

a fi nalist for the Academy of Management’s 1993 Terry Distinguished Book Award Dr Hunt received the Distinguished Service Award from the Academy

of Management, the Sustained Outstanding Service Award from the Southern Management Association, and the Barnie E Rushing, Jr Distinguished Re- searcher Award from Texas Tech University for his long-term contributions to management research and scholarship He also lived and taught in England, Finland, and Thailand, and taught in China.

Dr Richard N Osborn is a Wayne State University Distinguished Professor, fessor of Management Emeritus, and former Board of Governors Faculty Fellow

Pro-He has received teaching awards at Southern Illinois University at Carbondale and Wayne State University, and he has also taught at Arizona State University, Monash University (Australia), Tulane University, University of Munich, and the University of Washington He received a DBA from Kent State University after earning an MBA at Washington State University and a B.S from Indiana Uni- versity With over 200 presentations and publications, he is a charter member

of the Academy of Management Journals Hall of Fame Dr Osborn is a ing authority on international alliances in technology-intensive industries and

lead-is co-author of an organization theory text as well as Basic Organizational

Behavior ( John Wiley & Sons, 1995, 1998) He has served as editor of

interna-tional strategy for the Journal of World Business and Special Issue Editor for

The Academy of Management Journal He serves or has served as a member

of the editorial boards for The Academy of Management Journal, The Academy

of Management Review, Journal of High Technology Management, The Journal

of Management, Leadership Quarterly, and Technology Studies, among others

He is very active in the Academy of Management, having served as divisional program chair and president, as well as the Academy representative for the In- ternational Federation of Scholarly Associations of Management Dr Osborn’s research has been sponsored by the Department of Defense, Ford Motor Com- pany, National Science Foundation, Nissan, and the Nuclear Regulatory Com- mission, among others In addition to teaching, Dr Osborn spent a number of years in private industry, including a position as a senior research scientist with the Battelle Memorial Institute in Seattle, where he worked on improving the safety of commercial nuclear power.

About the Authors vii

Dr Mary Uhl-Bien is the Howard Hawks Chair in Business Ethics and Leadership

at the University of Nebraska She earned her Ph.D and M.B.A in organizational behavior at the University of Cincinnati after completing an undergraduate degree

in International Business and Spanish She teaches organizational behavior, ership, and ethics courses at the undergraduate and graduate (MBA and doctoral) levels, and has been heavily involved in executive education, teaching to business executives and physicians in the United States, China, Europe, and Saudi Arabia and to the senior executive service of the U.S government for The Brookings Institute in Washington, D.C She has been a visiting professor/scholar at Pablo

lead-de Olavilead-de University in Seville, Spain, the Universidalead-de Nova lead-de Lisboa/Catolica Portuguesa in Lisbon, Portugal, and University Lund in Sweden.

Dr Uhl-Bien’s research interests are in leadership, followership, and ethics In addition to her conceptual work on complexity and relational leadership, some of the empirical projects she is currently involved in include investigations of “Lead- ership and Adaptability in the Healthcare Industry” (a $300,000 grant from Booz Allen Hamilton), “Adaptive Leadership and Innovation: A Focus on Idea Genera- tion and Flow” (at a major fi nancial institution in the U.S.), and “Social Construc-

tions of Followership and Leading Up.” She has published in such journals as The

Academy of Management Journal, the Journal of Applied Psychology, The ship Quarterly, the Journal of Management, and Human Relations She won the

Leader-Best Paper Award in The Leadership Quarterly in 2001 for her co-authored article

on Complex Leadership She has been on the editorial boards of The Academy

of Management Journal, The Academy of Management Review, The Leadership Quarterly, Leadership, and The International Journal of Complexity in Leadership and Management, and is senior editor of the Leadership Horizons series (Infor-

mation Age Publishers) Dr Uhl-Bien has consulted with Disney, the U.S Fish and Wildlife Service, British Petroleum, and the General Accounting Offi ce, and served as the executive consultant for State Farm Insurance Co from 1998–2004

She has been a Visiting Scholar in Spain, Portugal, and Sweden Dr Uhl-Bien has trained Russian businesspeople for the American Russian Center at the University

of Alaska Anchorage from 1993–1996, worked on a USAID grant at the Magadan Pedagogical Institute in Magadan, Russia from 1995–1996, and participated in a Fulbright-Hays grant to Mexico during the summer of 2003.

Dr Mary Uhl-Bien

preface

Global warming, economic uncertainty, poverty, discrimination, unemployment, illiteracy these are among the many issues and problems we face as citizens today But how often do we stop and recognize our responsibilities for problem solving and positive action in this social context? What we do today will have a lasting impact on future generations And whether we are talking about families, communities, nations, or the organizations in which we work and volunteer, the core question remains: How can we join together to best serve society?

Look again at the cover Think about people working together and ing in organizations around the world Think about how organizations and their members grow, and how individuals can expand the positive impact of society’s institutions as their ideas and talents come together in supportive and nurturing work settings And, think about the delicate balances between work and family, between individuals and teams, and between organizations and society that must

collaborat-be mastered in the quest for future prosperity.

Yes, our students do have a lot to consider in the complex and ever-shifting world of today But, we believe they are up to the challenge And, we believe that courses in organizational behavior have strong roles to play in building their capabilities to make good judgments and move organizational performance for- ward in positive and responsible ways.

That message is a fi tting place to begin Organizational Behavior, 12th

Edi-tion Everyone wants to have a useful and satisfying job and career; everyone wants all the organizations of society—small and large businesses, hospitals, schools, governments, nonprofi ts, and more—to perform well; everyone seeks a healthy and sustainable environment In this context the lessons of our discipline are strong and applicable Armed with an understanding of organizational behav- ior, great things are possible as people work, pursue careers, and contribute to society through positive personal and organizational accomplishments.

Organizational behavior is a discipline rich with insights for career and life skills As educators, our job is to bring to the classroom and to students the great power of knowledge, understanding, and inquiry that characterizes our discipline and its commitment to understanding human behavior in organizations What our students do with their talents will not only shape how organizations all contrib- ute to society, but also fundamentally alter lives around the globe We must do our parts as educators to help them gain the understanding and confi dence to become leaders of tomorrow’s organizations.

about this book

Organizational Behavior, 12th Edition, brings to its readers the solid and

com-plete content core of prior editions, an enriched and exciting “OB Skills book,” and many revisions, updates, and enhancements that refl ect today’s dy- namic times.

Work-Content

All chapters are written so that they can be used in any sequence that best

fi ts the instructor’s course design Each has also been updated to refl ect new research fi ndings and current applications and issues For this edition, major changes were made to strengthen the research component, expand and refocus the chapters dealing with individual behavior and performance, and more fully treat the emerging directions in leadership research and thinking A module on Research Methods in OB has been placed online to offer easy ways to further enrich the course experience.

Ethics Focus

To help students anticipate, understand, and confront the ethical challenges of work and careers today, we have continued our special feature in each chapter—

Ethics in OB This feature presents a situation or issue from an actual case or

news report and asks a question of the student reader that requires personal refl ection on the ethics and ethics implications Examples include “Workers Concerned about Ethical Workplace, Personality Testing, Social Loafi ng May

Be Closer than You Think, Privacy in an Age of Social Networking, and Cheat Now Cheat Later.”

Leadership Focus

To focus students on their roles in demonstrating leadership in organizations,

we revised the leadership feature to “Finding the Leader in You.” This feature helps students think about how they can develop their own leadership skills and capabilities to enhance organizational performance Examples include Patricia Karter of Dancing Deer Baking, Jim Senegal of Costco, Karen Bryant of the Seattle Storm, and Jeff Bezos of Amazon.

Research Focus

To better communicate the timely research foundations of OB, we have

continued the popular Research Insights found in each chapter Each lights an article from a respected journal such as the Academy of Manage-

high-ment Journal and the Journal of Applied Psychology Sample topics include

ix

x About This Book

interactional justice, racial bias, social loafi ng, demographic faultlines, and workplace identities.

Applications Focus

To help students apply the insights of OB to real situations and problems,

each chapter includes Visual Sidebars that highlight key action points to

re-member—such as “Things Are Changing as the Facebook Generation Goes

to Work”; Margin Essays that provide brief and timely examples—such as “Employee Morale Varies Around the World,” and OB and Popular Culture

that links movies and television to management insights—such as Moral agement and John Q.

Man-Pedagogy

As always, our primary goal is to create a textbook that appeals to the student reader while still offering solid content Through market research surveys and focus groups with students and professors, we continue to learn what features worked best from previous editions, what can be improved, and what can be added to accomplish this goal both effectively and effi ciently Our response is

a pedagogical frame that combines popular elements from the last edition with new ones.

• Chapter Opening—a timely, real-world vignette introduces the chapter, The

Key Point helps clarify the topic, Chapter at a Glance highlights major study

questions, and What’s Inside highlights the key features.

• Inside the Chapter—a variety of thematic embedded boxes as previously

noted—Ethics in OB, Finding the Leader in You, OB in Popular Culture, and

Research Insight, highlight relevant, timely, and global themes and situations

that reinforce chapter content Margin Photo Essays provide further short

examples highlighting events and issues To assist with chapter study and test

preparation, each chapter has a running Margin Glossary and Margin List

Identifi ers.

• End of Chapter—a Study Guide helps students review and test their mastery

of chapter content Key components are Key Questions and Answers (keyed

to opening Chapter at a Glance topics), Key Terms, and a Self-Test (with

multiple choice, short response, and essay questions) Next Steps: Top Choices from the OB Skills Workbook highlight the Cases for Critical Think- ing, Team and Experiential Exercises, and Self-Assessments found in the back

of the book that complement each chapter.

The OB Skills Workbook

The end-of-text OB Skills Workbook has become a hallmark feature of the

text-book, and it has been updated and expanded for the new edition This

edi-tion features the Learning Style Inventory and Kouzes/Posner Student Leadership

Practices Inventory Both fi t well in an OB course as opportunities for substantial

About This Book xi

student refl ection and course enhancement The fi ve sections in the new updated workbook that offer many ways to extend the OB learning experience in creative and helpful ways are:

• Learning Style Inventory

• Student Leadership Practices Inventory

• Self-Assessment Portfolio

• Team and Experiential Exercises

• Cases for Critical Thinking

New Student and Instructor Support

Organizational Behavior, 12th Edition, is supported by a comprehensive

learn-ing package that assists the instructor in creatlearn-ing a motivatlearn-ing and enthusiastic environment.

Instructor’s Resource Guide The Instructor’s Resource Guide, written by

Andrea Smith-Hunter, Siena College, offers helpful teaching ideas, advice on course development, sample assignments, and chapter-by-chapter text highlights, learning objectives, lecture outlines, class exercises, lecture notes, answers to end-of-chapter material, and tips on using cases.

Test Bank This comprehensive Test Bank, written by Amit Shah, Frostburg

University, is available on the instructor portion of the Web site and consists of over 200 questions per chapter Each chapter has true/false, multiple choice, and short answer questions The questions are designed to vary in degree of diffi - culty to challenge your OB students.

The Computerized Test Bank is for use on a PC running Windows It contains content from the Test Bank provided within a test-generating program that allows instructors to customize their exams.

PowerPoint This robust set of lecture/interactive PowerPoints prepared by

Karen Edwards, Chemeketa Community College, is provided for each chapter to enhance your students’ overall experience in the OB classroom The PowerPoint slides can be accessed on the instructor portion of the Web site and include lec- ture notes to accompany each slide.

Web Quizzes This online study guide with online quizzes varies in level of

diffi culty Written by Amit Shah, Frostburg University, it is designed to help your students evaluate their individual progress through a chapter Web quizzes are available on the student portion of the Web site Here students will have the abil- ity to test themselves with 15–25 questions per chapter and include true-false and multiple choice questions.

Personal Response System The Personal Response System questions (PRS

or “Clickers”) for each chapter of Organizational Behavior 12th Edition is

xii About This Book

designed to spark discussion/debate in the OB classroom For more information

on PRS, please contact your local Wiley sales representative.

Companion Web Site The text’s Web site at http://www.wiley.com/college/

schermerhorn contains myriad tools and links to aid both teaching and learning, including nearly all of the student and instructor resources.

Business Extra Select Online Courseware System http://www.wiley.

com/college/bxs Wiley has launched this program that provides an instructor with millions of content resources from an extensive database of cases, jour- nals, periodicals, newspapers, and supplemental readings This courseware system lends itself extremely well to the integration of real-world content and allows instructors to convey the relevance of the course content to their students.

Videos and Video Teaching Guide

Short video clips tied to the major topics in organizational behavior are available

These clips provide an excellent starting point for lectures or for general class discussion Teaching notes for using the video clips, written by Stacy Shriver, University of Colorado, Boulder, are available on the instructor’s portion of the Web site.

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One-on-One Engagement With WileyPLUS for Organizational Behavior, 12e,

students receive 24/7 access to resources that promote positive learning comes Students engage with related examples (in various media) and sample practice items, including:

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About This Book xiii

• Self-Assessments quizzes students can use to test themselves on topics such

as emotional intelligence, diversity awareness, and intuitive ability.

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• Question Assignments: all end-of-chapter problems

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xiv About This Book

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contributors

Cases for Critical Thinking

Barry R Armandi, State University of New York, David S Chappell, Ohio

Univer-sity, Bernardo M Ferdman, Alliant International UniverUniver-sity, Placido L Gallegos, Southwest Communications Resources, Inc and the Kaleel Jamison Consulting Group Inc., Carol Harvey, Assumption College, Ellen Ernst Kossek, Michigan State University, Barbara McCain, Oklahoma City University, Mary McGarry, Empire State College, Marc Osborn, R&R Partners, Phoenix, AZ, Franklin Ramsoomair, Wilfrid Laurier University, Hal Babson and John Bowen of Columbus State Com- munity College.

Experiential Exercises and Self-Assessment Inventories

Barry R Armandi, State University of New York, Old Westbury, Ariel Fishman,

The Wharton School, University of Pennsylvania, Barbara K Goza, University

of California, Santa Cruz, D.T Hall, Boston University, F.S Hall, University of New Hampshire, Lady Hanson, California State Polytechnic University, Pomona,

Conrad N Jackson, MPC, Inc., Mary Khalili, Oklahoma City University, Robert man, Morehouse College, Paul Lyons, Frostburg State University, J Marcus Maier,

Led-Chapman University, Michael R Manning, New Mexico State University, Barbara

McCain, Oklahoma City University, Annie McKee, The Wharton School, University

of Pennsylvania, Bonnie McNeely, Murray State University, W Alan Randolph, University of Baltimore, Joseph Raelin, Boston College, Paula J Schmidt, New Mexico State University, Susan Schor, Pace University, Timothy T Serey, Northern Kentucky University, Barbara Walker, Diversity Consultant, Paula S Weber, New Mexico Highlands University, Susan Rawson Zacur, University of Baltimore.

acknowledgments

Organizational Behavior, 12th Edition, benefi ts from insights provided by a

dedi-cated group of management educators from around the globe who carefully read and critiqued draft chapters of this edition We are pleased to express our ap- preciation to the following colleagues for their contributions to this new edition

Merle Ace Chi Anyansi-Archibong Terry Armstrong Leanne Atwater Forrest Aven Steve Axley Abdul Aziz Richard Babcock David Baldridge Michael Banutu-Gomez Robert Barbato

Richard Barrett Nancy Bartell Anna Bavetta Robb Bay Hrach Bedrosian Bonnie Betters-Reed Gerald Biberman Melinda Blackman Lisa Bleich

Mauritz Blonder Dale Blount

G B Bohn William Bommer

H Michal Boyd Pat Buhler Gene E Burton Roosevelt Butler Ken Butterfi eld

Joseph F Byrnes Michal Cakrt Tom Callahan Daniel R Cillis Nina Cole Paul Collins Ann Cowden Deborah Crown Roger A Dean Robert Delprino Emmeline De Pillis Pam Dobies Delf Dodge Dennis Duchon Michael Dumler Ken Eastman Norb Elbert Theresa Feener Janice M Feldbauer Claudia Ferrante Mark Fichman Dalmar Fisher

J Benjamin Forbes Dean Frear Cynthia V Fukami Normandie Gaitley Daniel Ganster Joe Garcia Virginia Geurin

Robert Giambatista Manton Gibbs Eugene Gomolka Barbara Goodman Stephen Gourlay Frederick Greene Richard Grover Bengt Gustafsson Peter Gustavson Lady Alice Hanson Don Hantula Kristi Harrison William Hart Nell Hartley Neil J Humphreys David Hunt Eugene Hunt Howard Kahn Harriet Kandelman Paul N Keaton Andrew Klein Leslie Korb Peter Kreiner Eric Lamm Donald Lantham Jim Lessner Les Lewchuk Kristi M Lewis Robert Liden

Heidi Barclay, Metropolitan State Nancy Fredericks, San Diego State Cindy Geppert, Palm Beach State

College

Jim Maddox, Friends University Randy McCamey, Tarleton State Wendy Smith, U Del

Barcley Johnson, Western Michigan U.

Lam Nguyen, Palm Beach State

We also thank those reviewers who contributed to the success of previous editions.

Acknowledgments xvii

Beverly Linnell Kathy Lippert Michael London Michael Lounsbury Carol Lucchesi David Luther Lorna Martin Tom Mayes Daniel McAllister Douglas McCabe James McFillen Jeanne McNett Charles Milton Herff L Moore David Morand David Morean Sandra Morgan Paula Morrow Richard Mowday Christopher Neck Linda Neider Judy C Nixon Regina O’Neill Dennis Pappas Edward B Parks Robert F Pearse Lawrence Peters Prudence Pollard

Joseph Porac Samuel Rabinowitz Franklin Ramsoomair Clint Relyea

Bobby Remington Charles L Roegiers Steven Ross Joel Rudin Michael Rush Robert Salitore Terri Scandura Mel Schnake Holly Schroth

L David Schuelke Richard J Sebastian Anson Seers William Sharbrough

R Murray Sharp Ted Shore Allen N Shub Sidney Siegal Dayle Smith Mary Alice Smith Walter W Smock Pat Sniderman Ritch L Sorenson Shanthi Srinivas Paul L Starkey

Robert Steel Ronni Stephens Ron Stone Tom Thompson

Ed Tomlinson Sharon Tucker Nicholas Twigg Tony Urban Ted Valvoda Joyce Vincelette David Vollrath Andy Wagstaff

W Fran Waller Charles Wankel Edward Ward Fred A Ware, Jr.

Andrea F Warfi eld Harry Waters, Jr.

Joseph W Weiss Deborah Wells Robert Whitcomb Donald White Bobbie Williams Barry L Wisdom Wayne Wormley Barry Wright Kimberly Young Raymond Zammuto

We are grateful for all the hard work of the supplements authors who worked to develop the comprehensive ancillary package described above We thank Andrea Smith-Hunter, Siena College, for preparing the Instructor’s Resource Guide, Amit Shah, Frostburg University, for creating the Test Bank and the web quizzes, Karen Edwards, Chemeketa Community College, for developing the PowerPoint presen- tations, and Stacy Shriver, University of Colorado, Boulder, for writing the Video Teaching Notes We thank Brandon Warga of Kenyon College for his chapter open-

ing vignettes, and Robert (Lenie) Holbrook of Ohio University for both the OB in

Popular Culture feature and the creative instructor’s guide Art Imitates Life.

As always, the support staff at John Wiley & Sons was most helpful in the various stages of developing and producing this edition We would especially like

to thank Lisé Johnson (Acquisitions Editor), George Hoffman (Publisher), Susan McLaughlin (Developmental Editor), Sarah Vernon (Associate Editor), and Melissa Solarz (Editorial Assistant) for their extraordinary efforts in support of this project

They took OB to heart and did their very best to build a high-performance team

in support of this book We thank everyone at Wiley for maintaining the quest for quality and timeliness in all aspects of the book’s content and design Special grat- itude goes to Maddy Lesure as the creative force behind the new design We also thank Erin Bascom and Suzanne Ingrao of Ingrao Associates for their excellent production and design assistance, Allie Morris for overseeing the media develop- ment, and Amy Scholz for leading the marketing campaign Thank you everyone!!

brief contents

1 Introducing Organizational Behavior 3

2 Individual Differences, Values, and Diversity 25

3 Emotions, Attitudes, and Job Satisfaction 53

4 Perception, Attribution, and Learning 75

5 Motivation Theories 101

6 Motivation and Performance 121

7 Teams in Organizations 145

8 Teamwork and Team Performance 169

9 Decision Making and Creativity 195

10 Confl ict and Negotiation 219

11 Communication and Collaboration 241

12 Power and Politics 263

13 Leadership Essentials 291

14 Leadership Challenges and Organizational Change 319

15 Organizational Culture and Innovation 347

16 Organizational Goals and Structures 373

17 Strategy, Technology, and Organizational Design 399 Learning Style Inventory W-9

Student Leadership Practices Inventory W-13 Self-Assessment Portfolio W-33

Team and Experiential Exercises W-55 Cases for Critical Thinking W-99 Research Methods in OB

part 1 Organizational Behavior Today

part 2 Individual Behavior and Performance

part 3 Teams and Teamwork

part 4 Infl uence Processes and Leadership

part 5 Organizational Context

OB Skills Workbook

OB Module Online

FMTOC.indd Page xviii 21/09/11 10:57 AM ff-446 Schermerhorn_OB

contents

part 1 Organizational Behavior Today

1 Introducing Organizational Behavior 3 Introducing Organizational Behavior 4

Why Organizational Behavior Is Important 4

Scientifi c Foundations of Organizational Behavior 4

Organizational Behavior in a Changing World 6 Organizations as Work Settings 8

Organizational Behavior in Context 9

Organizational Environments and Stakeholders 9

Diversity and Multiculturalism 10 Management and Leadership 11

Managerial Activities and Roles 12

Learning Guide to Organizational Behavior 12/E 19

Chapter 1 Study Guide 20

part 2 Individual Behavior and Performance

2 Individual Differences, Values, and Diversity 25 Individual Differences 26

Self-Awareness and Awareness of Others 26

Personal Conception Traits 31

Emotional Adjustment Traits 34 Personality and Stress 35

Sources of Stress 35

Outcomes of Stress 36

Managing Stress 37 Values 38

Challenges in Managing Diversity 47

Chapter 2 Study Guide 48

3 Emotions, Attitudes, and Job Satisfaction 53 Understanding Emotions and Moods 54

The Nature of Emotions 54

Cultural Aspects of Emotions and Moods 59

Emotions and Moods as Affective Events 60 How Attitudes Infl uence Behavior 60

Components of Attitudes 61

Linking Attitudes and Behavior 62

Attitudes and Cognitive Consistency 62

Types of Job Attitudes 62 Job Satisfaction and Its Importance 63

Components of Job Satisfaction 64

Job Satisfaction Trends 65

How Job Satisfaction Infl uences Work Behavior 66

Linking Job Satisfaction and Job Performance 67

Chapter 3 Study Guide 70

4 Perception, Attribution, and Learning 75 The Perception Process 76

Factors Infl uencing Perception 76

Information Processing and the Perception Process 78

Perception, Impression Management, and Social Media 80

Common Perceptual Distortions 81

Stereotypes 81

Halo Effects 83

Selective Perception 83

Projection 84

xx Contents

Contrast Effects 84

Self-Fulfi lling Prophecies 85

Perception, Attribution, and Social Learning 86

Reinforcement Pros and Cons 95

Chapter 4 Study Guide 95

5 Motivation Theories 101

What Is Motivation? 102

Motivation Defi ned 102

Types of Motivation Theories 102

Needs Theories of Motivation 103

Hierarchy of Needs Theory 103

ERG Theory 104

Acquired Needs Theory 104

Two-Factor Theory 106

Equity Theory of Motivation 107

Equity and Social Comparisons 107

Equity Theory Predictions and Findings 108

Equity and Organizational Justice 109

Expectancy Theory of Motivation 111

Expectancy Terms and Concepts 111

Expectancy Theory Predictions 111

Expectancy Implications and Research 112

Goal-Setting Theory of Motivation 112

Motivational Properties of Goals 113

Goal-Setting Guidelines 113

Goal Setting and the Management Process 115

Chapter 5 Study Guide 116

6 Motivation and Performance 121

Motivation and Rewards 122

Integrated Model of Motivation 122

Intrinsic and Extrinsic Rewards 122

Pay for Performance 124

Motivation and Performance Management 127

Performance Management Process 127

Performance Measurement Methods 128

Performance Measurement Errors 131 Motivation and Job Design 131

Chapter 6 Study Guide 139

part 3 Teams and Teamwork

7 Teams in Organizations 145 Teams in Organizations 146

Teams and Teamwork 146

What Teams Do 147

Organizations as Networks of Teams 147

Cross-Functional and Problem-Solving Teams 149

Self-Managing Teams 150

Virtual Teams 151 Team Effectiveness 152

Criteria of an Effective Team 152

Synergy and Team Benefi ts 153

Open Systems Model of Teams 158

Team Resources and Setting 159

Nature of the Team Task 160

Team Size 160

Membership Composition of the Team 161

Diversity and Team Performance 162

Team Processes 164

Chapter 7 Study Guide 164

Contents xxi

8 Teamwork and Team Performance 169 High Performance Teams 170

Characteristics of High-Performance Teams 170

The Team-Building Process 171

Team-Building Alternatives 172 Improving Team Processes 173

Entry of New Members 174

Task and Maintenance Leadership 174

Roles and Role Dynamics 175

Team Norms 176

Team Cohesiveness 179

Inter-Team Dynamics 180 Improving Team Communications 182

Communication Networks 183

Proxemics and Use of Space 184

Communication Technologies 184 Improving Team Decisions 185

Ways Teams Make Decisions 185

Assets and Liabilities of Team Decisions 187

Groupthink Symptoms and Remedies 188

Team Decision Techniques 189

Chapter 8 Study Guide 190

9 Decision Making and Creativity 195 The Decision-Making Process 196

Steps in Decision Making 196

Ethical Reasoning and Decision Making 197

Types of Decisions 200

Decision Environments 201

Risk Management in Decision Making 202 Decision-Making Models 202

Classical Decision Model 203

Behavioral Decision Model 203

Systematic and Intuitive Thinking 204 Decision-Making Traps and Issues 205

Judgmental Heuristics 205

Decision Biases 206

Knowing When to Decide 206

Knowing Who to Involve 207

Knowing When to Quit 209 Creativity in Decision Making 211

Stages of Creative Thinking 211

Personal Creativity Drivers 212

Team Creativity Drivers 212

Chapter 9 Study Guide 214

10 Confl ict and Negotiation 219 Confl ict in Organizations 220

Types of Confl ict 220

Levels of Confl ict 220

Functional and Dysfunctional Confl ict 222

Culture and Confl ict 223 Confl ict Management 224

Stages of Confl ict 224

Hierarchical Causes of Confl ict 225

Contextual Causes of Confl ict 225

Indirect Confl ict Management Strategies 226

Direct Confl ict Management Strategies 228 Negotiation 230

Negotiation Goals and Outcomes 230

Ethical Aspects of Negotiation 232

Organizational Settings for Negotiation 232 Negotiation Strategies 232

Approaches to Distributive Negotiation 233

How to Gain Integrative Agreements 234

Common Negotiation Pitfalls 235

Third-Party Roles in Negotiation 235

Chapter 10 Study Guide 237

part 4 Infl uence Processes and Leadership

11 Communication and Collaboration 241 The Nature of Communication 242

The Communication Process 242

Feedback and Communication 243

Nonverbal Communication 244 Interpersonal Communication 245

Communication Barriers 245

Active Listening 246

Cross-Cultural Communication 248 Organizational Communication 251

Communication Channels 251

Communication Flows 252

Status Effects 255 Collaborative Work Environments 255

Collaboration Technologies 255

Interactional Transparency 256

Supportive Communication Principles 257

Chapter 11 Study Guide 258

xxii Contents

12 Power and Politics 263

Power and Infl uence 264

Interdependence, Legitimacy, and Power 264

Obedience 265

Acceptance of Authority and the Zone of Indifference 266

Sources of Power and Infl uence 268

Position Power 268

Personal Power 270

Power and Infl uence Capacity 272

Relational Infl uence Techniques 274

Empowerment 275

Keys to Empowerment 275

Power as an Expanding Pie 276

From Empowerment to Valuing People 277

Organizational Politics 278

Traditions of Organizational Politics 278

Politics of Self-Protection 281

Politics and Governance 283

Chapter 12 Study Guide 286

13 Leadership Essentials 291

Leadership 292

Managers versus Leaders 292

Trait Leadership Perspectives 293

Behavioral Leadership Perspectives 294

Situational Contingency Leadership 296

Fiedler’s Leadership Contingency View 296

Path-Goal View of Leadership 300

Hersey and Blanchard Situational Leadership

Model 301

Substitutes for Leadership 304

Follower-Centered Approaches 305

Implicit Leadership Theories (ILTs) 305

Implicit Followership Theories 307

Inspirational and Relational Leadership

Perspectives 309

Charismatic Leadership 309

Transactional and Transformational

Leadership 310

Leader—Member Exchange Theory 313

Chapter 13 Study Guide 314

14 Leadership Challenges and Organizational

Shared Leadership in Work Teams 324

Shared Leadership and Self-Leadership 326 Leadership across Cultures 327

The GLOBE Perspective 328

Leadership Aspects and Culture 329

Culturally Endorsed Leadership Matches 330

Universally Endorsed Aspects of Leadership 331 Leading Organizational Change 332

Contexts for Leadership Action 332

Leaders as Change Agents 335

Planned Change Strategies 338

Resistance to Change 339

Chapter 14 Study Guide 342

part 5 Organizational Context

15 Organizational Culture and Innovation 347 Organizational Culture 348

Functions of Organizational Culture 348

Subcultures and Countercultures 350

National Culture and Corporate Culture 351 Understanding Organizational Cultures 353

Layers of Cultural Analysis 353

Stories, Rites, Rituals, and Symbols 354

Cultural Rules and Roles 355

Shared Values, Meanings, and Organizational Myths 356

Innovation in Organizations 360

The Process of Innovation 361

Product and Process Innovations 362

Balancing Exploration and Exploitation 364

Managing Organizational Culture

and Innovation 365

Management Philosophy and Strategy 365

Building, Reinforcing, and Changing Culture 366

Tensions Between Cultural Stability and Innovation 367

Chapter 15 Study Guide 368

16 Organizational Goals and Structures 373 Organizational Goals 374

Societal Goals 374

Output Goals 375

Systems Goals 375 Hierarchy and Control 377

Organizations as Hierarchies 377

Controls Are a Basic Feature 380

Centralization and Decentralization 383 Organizing and Coordinating Work 384

Traditional Types of Departments 385

Coordination 388 Bureaucracy and Beyond 392

Mechanistic Structures and the Machine Bureaucracy 392

Organic Structures and the Professional Bureaucracy 393

Hybrid Structures 393

Chapter 16 Study Guide 394

17 Strategy, Technology, and Organizational Design 399

Strategy and Organizational Learning 400

Strategy 400

Organizational Learning 401

Linking Strategy and Organizational Learning 403 Strategy and Organizational Design 404

Organizational Design and Strategic Decisions 404

Organizational Design, Age, and Growth 405

Smaller Size and the Simple Design 406 Technology and Organizational Design 408

Operations Technology and Organizational Design 408

Adhocracy as a Design Option for Innovation and Learning 409

Information Technology and Organizational Design 411 Environment and Organizational Design 413

Developing a Top-Management Team 417

Using Top-Management Leadership Skills 419

Chapter 17 Study Guide 421

OB Skills Workbook W-1

Learning Style Inventory W-9 Student Leadership Practices Inventory W-13 Self-Assessment Portfolio W-33

Team and Experiential Exercises W-55 Cases for Critical Thinking W-99

Glossary G-1 Self-Test Answers ST-1 Notes N-1

Photo Credits PC-1 Organization Index OI-1 Name Index NI-1 Subject Index SI-1

The Tonight Show: Things Don’t Always Go as Planned

“So what does NBC

do? If you are making

buggy whips and no

one is buying buggies

anymore, do you keep

making buggy whips?”

—Jay Leno.b

The peacock was feeling the heat.

Affi liate station owners were grumbling to NBC that The Jay Leno Show, the comedian’s new prime-time project

after passing the Tonight Show torch to Conan O’Brien, was bad for ratings and would turn off viewers Even

worse, Leno’s show wasn’t on the air yet.

High-ranking NBC exec Jeff Zucker, having earlier turned around The Today Show, offered a deal Leno takes

Conan’s slot but is shortened to 30 minutes Conan keeps The Tonight Show but moves to midnight.

The deal: It came together like an “after-school special on the Don’ts of leadership transitions,” noted HR

consultant J.P Elliot.a The result: A PR nightmare

dubbed The Jaypocalypse Public trash-talking by all

parties And the defection of a serious chunk of

viewers with strong brand loyalty and purchasing

power.

Only one day after the deal was announced, Conan released his earnest

“People of Earth”

statement, quickly winning fans, a visible majority of fellow comedians, and, seemingly, almost everyone

on Twitter In contrast, Leno often appeared

befuddled in interviews, with only Jerry Seinfeld

and Oprah supporting him in the press.

The aftermath: Eight months later, Leno was back

behind the Tonight Show desk Conan had a

home on TBS NBC was down viewers, sponsors, and cash, having paid $43 million to break Conan’s contract

The lesson to be learned: “The real culprit here,” says consultant Elliot, “[is] NBC’s lack of ability to execute their

succession plan.” But just whose failure was that? Perhaps that’s a question best answered by Jeff Zucker as he

ponders the complexities of human behavior in organizations.

FYI

1 Time for Conan O’Brien’s Twitter followers to surpass Jay Leno’s: under 60 minutes.c

2 Cost of breaking Leno’s NBC contract: Estimated $150 million Cost of breaking Conan’s NBC contract: $45 million.d

Quick Summary

• After fi ve years of waiting, Conan O’Brien takes the reins of The Tonight Show from Jay Leno

• Leno, unwilling to step away, launches a prime-time talk show Affi liates complain even before the show airs

• To rescue Leno, NBC Universal proposes bumping Conan to 12:05 a.m., Leno to 11:35 p.m Public acrimony ensues

• NBC Universal spends an estimated one-third of the cost of breaking Leno’s contract to fi re Conan Leno’s show

airs, sputters O’Brien sells out a 30-city comedy tour before launching Conan on TBS

c01IntroducingOrganizationalBehavior.indd Page 2 8/16/11 4:31 PM f-535 Schermerhorn_OB

chapter at a glance

What Is Organizational Behavior and Why Is It Important?

What Are Organizations Like as Work Settings?

What Is the Nature of Management and Leadership in Organizations?

How Do We Learn About Organizational Behavior?

what’s inside?

ETHICS IN OB

IS MANAGEMENT A PROFESSION?

FINDING THE LEADER IN YOU

BANKER SHOWS GENEROSITY CAN TRIUMPH OVER GREED

OB IN POPULAR CULTURE

MORAL MANAGEMENT AND JOHN Q

RESEARCH INSIGHT

WOMEN MIGHT MAKE BETTER LEADERS

people make the difference

Organizational Behavior

4 1 Introducing Organizational Behavior

Whether your career unfolds in entrepreneurship, corporate enterprise, public service, or any other occupational setting, it is always worth remembering that people are the basic building blocks of organizational success Organizations

do well when the people in them work hard to achieve high performance, as individuals and as members of teams Creating success requires respect for everyone’s needs, talents, and aspirations, as well as an understanding of the dynamics of human behavior in organizational systems.

This book is about people, everyday people like you and like us, who work and pursue careers in today’s highly demanding settings It is about people who seek fulfi llment in their lives and jobs in a variety of ways and in uncertain times It

is about the challenges of leadership, ethics, globalization, technology utilization, diversity, work–life balance, and other social issues And this book is also about how our complex environment requires people and organizations to learn and to continuously develop in the quest for high performance and promising futures.

Why Organizational Behavior Is Important

In this challenging era, the body of knowledge we call organizational behavior

offers many insights of great value Called OB for short, organizational behavior

is the study of human behavior in organizations It is an academic discipline devoted to understanding individual and group behavior, interpersonal pro- cesses, and organizational dynamics Learning about OB can help you expand your potential for career success in the dynamic, shifting, and complex work- places of today—and tomorrow.

OB is aknowledge base

that helps peoplework together

to improvethe performance

of organizations

Scientifi c Foundations of Organizational Behavior

As far back as a century ago, consultants and scholars were giving increased attention to the systematic study of management and organizational practices

Although the early focus was initially on physical working conditions, ples of administration, and industrial engineering, interest broadened to include the human factor This gave impetus to research dealing with indi- vidual attitudes, group dynamics, and the relationships between managers and workers From this historical foundation, organizational behavior emerged

princi-as a scholarly discipline devoted to scientifi c understanding of individuals and groups in organizations, and of the performance implications of organiza- tional processes, systems, and structures.1

Interdisciplinary Body of Knowledge Organizational behavior is an

interdisci-plinary body of knowledge with strong ties to the behavioral sciences—psychology,

• Organizational

behavior is the study of

individuals and groups in

organizations

LEARNING ROADMAP Why Organizational Behavior Is Important / Scientifi c Foundations of Organizational Behavior / Organizational Behavior in a Changing World

Introducing Organizational Behavior

c01IntroducingOrganizationalBehavior.indd Page 4 6/16/11 7:17 PM ff-446 Schermerhorn_OB

Introducing Organizational Behavior 5

sociology, and anthropology—as well as to allied social sciences such as economics and political science OB is unique, however, in its goals of integrating the diverse insights of these other disciplines and applying them to real-world organizational problems and opportunities The ultimate goal of OB is to improve the performance

of people, groups, and organizations, and to improve the quality of work life overall.

Use of Scientifi c Methods The fi eld of organizational behavior uses

scien-tifi c methods to develop and empirically test generalizations about behavior in

organizations OB scholars often propose and test models—simplifi ed views

of reality that attempt to identify major factors and forces underlying real-world

phenomena These models link independent variables—presumed causes—

with dependent variables—outcomes of practical value and interest Here,

for example, is a very basic model that describes one of the fi ndings of OB research—job satisfaction (independent variable) infl uences absenteeism (dependent variable).

AbsenteeismJob Satisfaction

satisfac-Figure 1.1 describes a set of research methods commonly used by OB researchers to study models and the relationships among variables These meth- ods are based on scientifi c thinking This means (1) the process of data collection

is controlled and systematic, (2) proposed explanations are carefully tested, and (3) only explanations that can be rigorously verifi ed are accepted.

Focus on Application As already suggested, the science of organizational

behavior focuses on applications that can make a real difference in how tions and people in them perform Examples of the many practical research ques- tions addressed by the discipline of OB and reviewed in this book include: How should rewards such as merit pay raises be allocated? How can jobs be designed for both job satisfaction and high performance? What are the ingredients of suc- cessful teamwork? How can a manager deal with resistance to change? Should leaders make decisions by individual, consultative, or group methods? How can

organiza-“win–win” outcomes be achieved in negotiations? What causes unethical and socially irresponsible behavior by people in organizations?

Contingency Thinking Rather than assuming that there is one “best” or

univer-sal answer to questions such as those just posed, OB recognizes that management

• Models are simplifi ed

views of reality that attempt to explain real-world phenomena

• Independent variables

are presumed causes that infl uence dependent variables

• Dependent variables

are outcomes of practical value and interest that are infl uenced by independent variables

6 1 Introducing Organizational Behavior

practices must be tailored to fi t the exact nature of each situation––this is called

contingency thinking In fact, one of the most accepted conclusions of

scien-tifi c research to date is that there is no single best way to manage people and organizations Stated a bit differently, contingency thinking recognizes that there are no cookie-cutter solutions that can be universally applied to solve organiza- tional problems Responses must be crafted to best fi t the circumstances and people involved As you might expect, this is where solid scientifi c fi ndings in organizational behavior become very helpful Many examples are provided in the Research Insight feature found in each chapter.

An essential responsibility of any science is to create and test models that offer evidence-based foundations for decision making and action A book by

scholars Jeffrey Pfeffer and Robert Sutton defi nes evidence-based management

as making decisions on “hard facts”—that is about what really works, rather than

on “dangerous half-truths”—things that sound good but lack empirical tion.2 One of the ways evidence-based thinking manifests itself in OB is through

substantia-a contingency substantia-approsubstantia-ach in which resesubstantia-archers identify how different situsubstantia-ations can best be understood and handled.

In a time of complex globalization, for example, it’s important for everyone, from managers and employees to government leaders, to understand how OB theories and concepts apply in different countries.3 Although it is relatively easy

to conclude that what works in one culture may not work as well in another, it is far harder to describe how specifi c cultural differences can affect such things as motivation, job satisfaction, leadership style, negotiating tendencies, and ethical behavior Fortunately, OB is now rich with empirically based insights into cross- cultural issues.

Organizational Behavior in a Changing World

With the recent economic turmoil, fi nancial crisis, and recession, there isn’t any doubt that organizations and their members face huge challenges Talk to friends

• Contingency thinking

seeks ways to meet the

needs of different management situations

• Evidence-based

management uses hard

facts and empirical

evidence to make decisions

Sources of research insight in OB

Field studies

in real-lifeorganizationalsettings

Laboratory studies

in simulated andcontrolled settings

Meta analyses

using statistics to poolresults of differentempirical studies

Case studies

looking in depth atsingle situations

Survey studies

using questionnairesand interviews insample populations

Introducing Organizational Behavior 7

and follow the news headlines Jobs are still hard to come by for new college graduates; unemployment remains high; those with jobs often face the confl icting demands of work and family responsibilities You’ll notice organizations adopting new features, changing work processes and practices, and trying different strate- gies At the same time, they’re dealing with employees, customers, and clients whose needs, values, and tastes seem to be constantly shifting.

Things have actually been changing for quite some time in our work ments, but recent events are especially dramatic in affecting both the nature and pace of change The comments of consultant Tom Peters seem especially rele- vant He once called the changing environment of organizations a “revolution that feels something like this: scary, guilty, painful, liberating, disorienting, exhilarat- ing, empowering, frustrating, fulfi lling, confusing, and challenging In other words, it feels very much like chaos.”4

environ-The environment of change in which we now live and work calls for lots of learning and continuous attention The fi eld of OB recognizes these trends in what

No one doubts there are good and bad leaders of both genders But research

by Alice Eagley and her colleagues at Northwestern University suggests that women are often perceived as more likely than men to use leadership styles that result in high performance by followers.

In a meta-analysis that statistically compared the results of 45 research studies dealing with male and female leadership styles, Eagley and her team concluded that women are frequently described as leading by inspiring, exciting, mentoring, and stimulating creativity They point out that these behaviors have “transformational” qualities that build stronger organizations through innovation and teamwork Women also score higher on rewarding positive performance, while men score higher in punishing and correcting mistakes.

Eagley and her colleagues explain the fi ndings in part by the fact that followers are more accepting of a transformational style when the leader is female, and that the style comes more naturally to women because of its emphasis on nurturing They also suggest that because women may have to work harder than men to succeed, their leadership skills get tough tests and end up being better developed.

Women Might Make Better Leaders

Do the Research What do you think: is this study on track? Conduct an interview study of people working

for female and male managers Ask the question: Do women lead differently from men? Organize the responses and prepare an analysis that answers your research question Although not scientifi c, your study could prove quite insightful.

POSSIBLE LEADERSHIP STRENGTHS OF WOMEN

• “Transformational”

• Good at mentoring

• Very inspiring

• Encourage creativity

• Show excitement about goals

• Reward positive performance

Source: Alice H Eagley, Mary C Johannesen-Smith and Marloes I van Engen, “Transformational, Transactional and Laissez-Faire

Leadership: A Meta-Analysis of Women and Men,” Psychological Bulletin 24.4 (2003), pp 569–591.

RESEARCH INSIGHT

8 1 Introducing Organizational Behavior

people expect and value in terms of human ior in organizations.5

behav-• Commitment to ethical behavior: Highly

publicized scandals involving unethical and illegal practices prompt concerns for ethical behavior in the workplace; there is growing intolerance for breaches of public faith by organizations and those who run them.

• Broader views of leadership: New pressures and

demands mean organizations can no longer rely on just managers for leadership: leadership

is valued from all members, found at all levels, and fl ows in all directions—not just top-down.

• Emphasis on human capital and teamwork:

Success is earned through knowledge, ence, and commitments to people as valuable human assets; work is increasingly team based with a focus on peer contributions.

experi-• Demise of command-and-control: Traditional

hierarchical structures and practices are proving incapable of handling today’s chal- lenges; they are being replaced by shared leadership, fl exible structures, and participatory work settings that fully value human capital.

• Infl uence of information technology: As new

technologies—including social media—penetrate all aspects of the workplace, implications for work arrangements, organizational systems and processes, and individual behavior are continu- ously evolving.

• Respect for new workforce expectations: The new generation of workers is less

tolerant of hierarchy, more high tech, and less concerned about status;

organizations are paying more attention to helping members balance work and non-work responsibilities.

• Changing concept of careers: New economy jobs require special skill sets and a

capacity for continuous skill development; more people now work as independent contractors who shift among employers rather than hold traditional full-time jobs.

• Concern for sustainability: Issues of sustainability are top priorities; decision

making and goal setting increasingly give attention to the environment, climate justice, and preservation of resources for future generations.

Things Are Changing as the Facebook Generation

Goes to Work

Call them “Generation F,” short for the Facebook Generation

They are heavily into the world of social media, and they are bringing change to the workplace Manage-ment scholar and consultant Gary Hamel says that managers who want to work well with Gen F have to face up to a new set

of expectations Here’s his view of Gen F at work

• No one kills an idea; all ideas deserve a hearing

• Contributions overrule credentials

• Authority is earned, not given

• Leaders serve; they don’t command

• People choose tasks that interest them

• Groups are self-organizing and free formed

• Resources fl ow toward good ideas and projects

• Power comes from information sharing

• Wisdom lies within the crowd; peer review counts

• Community grows from shared decision making

• Recognition and joy of accomplishment are great motivators

• Rabble rousing is embraced, not discouraged

In order to understand the complex fi eld of forces that relate to human behavior

in organizations, we need to begin with the nature of the “organization” itself

Simply stated, an organization is a collection of people working together in a

Organizations as Work Settings

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Organizations as Work Settings 9

division of labor to achieve a common purpose This defi nition describes thing from clubs, voluntary organizations, and religious bodies to entities such as small and large businesses, schools, hospitals, and government agencies.

every-Organizational Behavior in Context

The behavior of people in organizations is greatly affected by context Think about yourself Do you act differently when you are with your friends, at school,

or at work? In many cases the answer is probably “yes,” and the question then becomes: “Why?” To understand behavior in any setting, we must ask ourselves how contextual factors infl uence it and in what ways We also need to consider how we are affecting the context How do our behaviors contribute to the dynam- ics that are happening to us and around us, and in both positive and negative ways? The bottom line is that a key aspect of understanding organizational behav- ior is considering the situations, or contexts, in which the behavior occurs.

One of the strongest contextual infl uences on OB is organizational culture—

the shared beliefs and values that infl uence the behavior of organizational bers Former eBay CEO Meg Whitman calls it the “character” of the organization

mem-She says organization culture is “the set of values and principles by which you run

a company” and becomes the “moral center” that helps every member understand what is right and wrong in terms of personal behavior.6

Organizational cultures infl uence the way we feel and act in organizations In cultures that are more authoritarian and hierarchical, people are hesitant to make decisions and take action on their own, so they tend to show little initiative and wait for approval In other cultures, people can be extremely competitive and aggressive in the quest for performance results and rewards Still other cultures are known for their emphasis on speed and agility in dealing with markets and environments, and in generating new ideas and innovations How these organi- zational cultures affect people depends on something called “fi t”—the match of organizational culture and individual characteristics People who fi nd a good fi t tend to experience confi dence and satisfaction in their work; those who fi nd themselves in a bad fi t may be more prone to withdraw, experience work stress, and even become angry and aggressive due to dissatisfaction.

Just as organizations have cultures, they also have climates Organizational

climate represents the shared perceptions among members regarding what the

organization is like in terms of management policies, practices, events, and cedures You have probably noticed and felt the climate in organizations that you have worked for In some organizational climates relations among managers and employees are relaxed and informal, with lots of free-fl owing communication

pro-But in other climates, managers act distant from employees and emphasize mal work procedures and interactions, with more structured and restricted com- munication.

for-Organizational Environments and Stakeholders

Figure 1.2 shows that organizations are dynamic open systems They obtain

resource inputs from the environment and transform them into fi nished goods

or services that are returned to the environment as product outputs If thing works right, suppliers value the organization and continue to provide needed resources, employees value their work and infuse the transformation

every-• Organizational

culture is a shared set of

beliefs and values within

an organization

• Organizational climate

represents shared perceptions of members regarding what the organization is like in terms

of management policies and practices

• Open systems

transform human and material resource inputs into fi nished goods and services

10 1 Introducing Organizational Behavior

processes with their energies and intellects, and customers and clients value the organization’s outputs enough to create a continuing demand for them

We have just described a value chain—the sequence of activities that results

in the creation of goods and services of value to customers It begins with the acquisition of inputs, continues through their transformation into product out- puts, and ends when products are distributed to customers and clients who are well served When the value chain is well managed, the organization is able to sustain operations and, hopefully, prosper over the long run But when the value chain breaks down due to input problems, transformation problems, or output problems, an organization’s performance suffers and its livelihood may be threat- ened In extreme cases the organization can be forced into bankruptcy, such as happened to General Motors and Chrysler in the recent economic downturn, or even go out of existence altogether.

A popular and useful way to describe and analyze the external environment

of organizations is in terms of stakeholders—people, groups, and institutions that

are affected by and thus have an interest or “stake” in an organization’s mance It is common in OB to recognize customers, owners, employees, suppliers, regulators, local communities, and future generations among the key stakeholders

perfor-of organizations.

Although an organization should ideally operate in ways that best serve all stakeholders, the realities are that confl icting interests can create challenges for decision makers Consider the possibilities: customers want value pricing and high-quality products, owners want profi ts and returns on investments, employ- ees want secure jobs with good pay and benefi ts, suppliers want reliable con- tracts and on-time payments, regulators want compliance with laws, local com- munities want good organizational citizenship and community support, and future generations want environmental protection and sustainability of natural resources.

Diversity and Multiculturalism

Another important aspect of any organization is the makeup of the people within it Consultant R Roosevelt Thomas makes the point that positive organi-

• The value chain is a

sequence of activities that

creates valued goods and

services for customers

• Stakeholders are

people and groups with an

interest or “stake” in the

Consumer Feedback

InformationMaterialsTechnologyFacilitiesMoneyPeople

Finished Goodsand Services

Figure 1.2 Organizations

are open systems that

create value while

interact-ing with their environments

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Management and Leadership 11

zational cultures tap the talents, ideas, and creative potential of all members.7

His point focuses attention on workforce diversity, the presence of individual

differences based on gender, race and ethnicity, age, able-bodiedness, and ual orientation.8 It also highlights multiculturalism as an attribute of organiza-

sex-tions that emphasize pluralism, and genuine respect for diversity and individual differences.9

Demographic trends driving workforce diversity in American society are well recognized There are more women working than ever before They earn 60 percent of college degrees and fi ll a bit more than half of managerial jobs.10 The proportion of African Americans, Hispanics, and Asians in the labor force is increasing By the year 2060, people of color will constitute over 60 percent of the U.S population; close to 30 percent of the population will be Hispanic.11

A key issue in any organization is inclusion—the degree to which the

cul-ture embraces diversity and is open to anyone who can perform a job, less of their diversity attributes.12 In practice, however, valuing diversity must still be considered a work in progress Data show, for example, that women earn only about 75 cents per dollar earned by men; female CEOs earn 85 cents

regard-per dollar earned by males At Fortune 500 companies women hold only 15

CEO jobs and 6.2 percent of top-paying positions; women of color hold only 1.7 percent of corporate offi cer positions and 1 percent of top-paying jobs.13

Indeed, when Ursula Burns was named CEO of Xerox, she became the fi rst

African-American woman to head a Fortune 500 fi rm.14

• Workforce diversity

describes how people differ on attributes such as age, race, ethnicity, gender, physical ability, and sexual orientation

A manager is someone whose job it is to directly support the work efforts of

others Being a manager is a unique challenge with responsibilities that link closely with the fi eld of organizational behavior At the heart of the matter man- agers help other people get important things done in timely, high-quality, and personally satisfying ways And in the workplaces of today this is accomplished more through “helping” and “supporting” than through traditional notions of

“directing” and “controlling.”

You’ll fi nd the word “manager” is increasingly being replaced in

conversa-tions by such terms as “coordinator,” “coach,” or “team leader.” Effective

manag-ers help people achieve both high performance and job satisfaction This defi

ni-tion focuses attenni-tion on two key outcomes, or dependent variables, that are

important in OB The fi rst is task performance You can think of it as the

qual-ity and quantqual-ity of the work produced or the services provided by an individual,

team or work unit, or organization as a whole The second is job satisfaction It

indicates how people feel about their work and the work setting.

OB is quite clear in that managers should be held accountable for both of these results The fi rst, performance, pretty much speaks for itself The second, satisfaction, might give you some pause for thought But just as a valuable machine should not be allowed to break down for lack of proper maintenance, the talents and enthusiasm of an organization’s workforce should never be lost

• Managers are persons

who support the work efforts of other people

• An effective manager

helps others achieve high levels of both performance and satisfaction

12 1 Introducing Organizational Behavior

or compromised for lack of proper care In this sense, taking care of job faction today can be considered an investment in tomorrow’s performance potential.

satis-Managerial Activities and Roles

Anyone serving as a manager or team leader faces a challenging and complicated job Among the ways that managerial work has been described and taught is through the four functions shown in Figure 1.3: planning, organizing, leading, and controlling These functions describe what managers are supposed to do in respect to:

• Planning—defi ning goals, setting specifi c performance objectives, and

identifying the actions needed to achieve them

• Organizing—creating work structures and systems, and arranging resources

to accomplish goals and objectives

• Leading—instilling enthusiasm by communicating with others, motivating

them to work hard, and maintaining good interpersonal relations

• Controlling—ensuring that things go well by monitoring performance and

taking corrective action as necessary

In what has become a classic study, Henry Mintzberg described how managers perform these functions while fulfi lling the set of 10 managerial roles shown in Figure 1.4.15

A manager’s interpersonal roles involve working directly with other people,

hosting and attending offi cial ceremonies (fi gurehead), creating enthusiasm and serving people’s needs (leader), and maintaining contacts with important people

and groups (liaison) The informational roles involve managers exchanging

infor-mation with other people, seeking relevant inforinfor-mation (monitor), sharing it with insiders (disseminator), and sharing it with outsiders (spokesperson) A manager’s

decisional roles involve making decisions that affect other people, seeking

prob-lems to solve and opportunities to explore (entrepreneur), helping to resolve

• Planning sets objectives

and identifi es the actions

needed to achieve them

• Controlling monitors

performance and takes any

needed corrective action

Figure 1.3 The management process of planning, organizing, leading, and controlling.

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Management and Leadership 13

confl icts (disturbance handler), allocating resources to various uses (resource allocator), and negotiating with other parties (negotiator).

Managerial Skills

A skill is an ability to translate knowledge into action that results in a desired

per-formance Robert Katz divides the essential managerial skills into three categories—

technical, human, and conceptual.16 He further suggests that the relative tance of these skills varies across the different levels of management Technical skills are considered more important at entry levels, where supervisors and team leaders must deal with job- specifi c problems Senior executives require more conceptual skills as they face sometimes ambiguous problems and deal with complex issues of organizational mission and strategy Human skills, which are strongly grounded in the foundations of organizational behavior, are consistently important across all mana gerial levels.

impor-Technical Skills A technical skill is an ability to perform specialized tasks

using knowledge or expertise gained from education or experience A good example is skill in using the latest communication and information technologies

In the high-tech workplaces of today, technical profi ciency in database ment, spreadsheet analysis, presentation software, e-mail, video chats and confer- encing, and even social media is often a hiring prerequisite.

manage-Human Skills Central to all aspects of managerial work and team leadership

are human skills, or the ability to work well with other people They show up

as a spirit of trust, enthusiasm, and genuine involvement in interpersonal ships A person with good human skills will have a high degree of self-awareness and a capacity for understanding or empathizing with the feelings of others

relation-People with this skill are able to interact well with others, engage in persuasive communications, and deal successfully with disagreements and confl icts.

An important aspect of human skills is emotional intelligence, or EI As

defi ned by Daniel Goleman, EI is the ability to understand and manage emotions

• Human skill is the

ability to work well with other people

• Emotional intelligence

is the ability to manage oneself and one’s relationships effectively

Interpersonal Roles

How a manager interacts with otherpeople

Figurehead Leader Liaison

Informational Roles

How a manager exchanges andprocesses information Monitor

Disseminator Spokesperson

Decisional Roles

How a manager uses information indecision making

Entrepreneur Disturbance handler Resource allocator

roles of effective managers

14 1 Introducing Organizational Behavior

both personally and in relationships with others.17 The core elements in tional intelligence are:

emo-• Self-awareness—ability to understand your own moods and emotions

• Self-regulation—ability to think before acting and to control bad impulses

• Motivation—ability to work hard and persevere

• Empathy—ability to understand the emotions of others

• Social skill—ability to gain rapport with others and build good relationships

Human skills in emotional intelligence and interpersonal relationships are essential to success in each of the managerial activities and roles previously dis- cussed Managers and team leaders need to develop, maintain, and work well with a wide variety of people, both inside and outside the organization.18 These

include task networks of specifi c job-related contacts, career networks of career guidance and opportunity resources, and social networks of trustworthy friends

and peers.19 It can be said in this sense that managers must develop and maintain

social capital in the form of relationships and networks that they can call upon

as needed to get work done through other people.

Conceptual Skills In addition to technical and human skills, managers should

be able to view the organization or situation as a whole so that problems are always solved for the benefi t of everyone concerned This capacity to think ana-

lytically and solve complex and sometimes ambiguous problems is a conceptual

skill It involves the ability to see and understand how systems work and how

their parts are interrelated, including human dynamics Conceptual skill is used to identify problems and opportunities, gather and interpret relevant information, and make good problem-solving decisions.

Leadership in Organizations

The job of a manager has never been more demanding than it is in today’s dynamic and hypercompetitive work environments But it is also true that manag- ers alone cannot solve all the complex problems and address all the challenging

• Social capital is a

capacity to get things done

due to relationships with

other people

• Conceptual skill is the

ability to analyze and solve

complex problems

Team Leadership and Mentoring Give Manager Lots of Satisfaction

Managers often get good pay and perks But lots of responsibility comes along with them Dea Robinson, a practice administrator for Inpatient Medicine Service in Englewood, Colorado, knows this full well She manages a fi ve-person team and says satisfaction comes from the variety, challenge, and mentoring aspects of her work “If you’re in management you have

to fi gure out how to talk to people, get along with people,” she says.

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situations in organizations In today’s organizations there is more recognition that every individual contributes to his or her own performance and job satisfaction and that more people have to be engaged in the leadership process to advance new ideas and new solutions, and to challenge old ways of thinking It is a new world of management where managers aren’t the only leaders and where part of every manager’s success is based on how well he or she mobilizes leadership contributions from others

Leaders are people who use infl uence to create change They have followers because other people see the value of their ideas or suggestions and choose to

go along or align with them Managers, by virtue of their positions of authority, have the opportunity to act as leaders But they don’t always do so, or do so suc- cessfully Leaders succeed when people follow them not because they have to but because they want to This positive infl uence emerges from persuasiveness, com- petence, and human skills The Finding the Leader in You feature in each chapter

is designed to provide role models and get you thinking about developing your leadership potential.

Management and Leadership 15

Finding the Leader in You

BANKER SHOWS GENEROSITY CAN TRIUMPH OVER GREED

When we think of outstanding leaders we often think of heroes and celebrate their great accom-plishments with national holidays such as Presidents Day (initially for Washington and Lincoln) and Martin Luther King Day Current and former employees of City National Bank of Florida, one of the oldest and most profi table banks in the state, are considering

a day that would honor their CEO, Leonard Abess

Abess bought the bank out of bankruptcy in 1985 for $21 million, all borrowed City National

employees had taken quite a hit

on their retirement accounts He wanted to reach out to the staff and show his appreciation

This wasn’t the fi rst time this heroic banker has shared his wealth Abess is an active philanthropist who regularly contributes to local medical centers and universities

With all the recent tary about CEOs receiving hefty bonuses as their fi rms have experienced declining profi tability,

commen-it is a nice reminder that some CEOs can be both excellent managers and generous leaders

What’s the Lesson Here?

Would you have made the same decision as Abess? Do you think the employees deserved the distribution, or should it go to the executives for their leader- ship? Would you, like Abess, have included former employees as well?

fl ourished under his leadership, getting an A1 rating for fi nancial security from TheStreet.com and joining the top 5 percent of all U.S

banks It was sold to a Spanish bank, Caja Madrid, for almost a billion dollars Abess didn’t just take his profi ts and go home He quietly took $60 million and distributed it to 471 current and former employees

So what made Leonard Abess a hero? He didn’t talk about his generosity publicly until a newspa-per discovered it Abess told the

Miami Herald that long before the

sale he had been trying

to come up with a way

to reward employees for their service “I always thought some day I’m going to surprise them,”

Abess said “I sure as heck don’t need (the money).”

He also noted that with the recent recession, bank

16 1 Introducing Organizational Behavior

Organizations are full of leaders, managers and nonmanagers alike These are people who get listened to by their peers, by their managers, and by people below and higher up in the organization In contrast to traditional views of leadership

fl owing downward, lots of leadership fl ows upward and side-to-side You can be

a leader among your peers by becoming the person people turn to for advice, support, or direction You can be a leader by convincing higher management to adopt new practices suggested from your level And, remember the notion of the manager as “coach” and “coordinator” as described earlier? Everytime you act in ways that fi t these descriptions, there’s no doubt you’re being a leader.

Ethical Management and Leadership

Having the essential managerial and leadership skills is one thing; using them correctly to get things done in organizations is quite another And when it comes

to ethics and morality, scholar Archie B Carroll draws a distinction between immoral managers, amoral managers, and moral managers.20

The immoral manager essentially chooses to behave unethically She or

he doesn’t subscribe to any ethical principles, making decisions and acting to gain best personal advantage Disgraced executives like Bernard Madoff and

• An immoral manager

chooses to behave unethically

ETHICS IN OB

IS MANAGEMENT A PROFESSION?

The economic recession brought hardship and turmoil to lots of people and organizations But even as fi rms performed poorly or failed altogether, many top executives still got high salaries, extra bonuses, and generous severance packages This happened at the same time many workers lost their jobs, took pay cuts, or had their work hours reduced

If that’s not enough, there’s the Bernard Madoff scandal Now sentenced to 150 years in prison, he formerly lived lavishly while running an investment Ponzi scheme that bilked individuals, charitable foundations, colleges and universities, and other institutions of many billions of dollars

Does it surprise you that a Harvard Business Review article

pointed out that managers are now losing the public trust? To help change things for the better, the authors call for business schools to address manage-ment as a profession governed by codes of conduct that “forge an implicit social contract with society.”

This is all part of a continuing debate about management ethics and corporate social responsibility You’ll hear some argue that managers should try to satisfy the interests of many different stakeholders But others will say that managers should stick to their primary duty—acting to maximize wealth for shareholders

Make Ethics Personal: What is your position on the shareholder wealth versus

stakeholder interest debate? Do you agree with the movement to make management

a profession? Would professionalizing management really make a difference in terms

of ethical accountability and everyday managerial behavior?

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