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(BQ) Part 1 book Organizational behavior has contents: Introduction to the field of organizational behavior; individual behavior, personality, and values; perceiving ourselves and others in organizations; workplace emotions, attitudes, and stress; foundations of employee motivation; applied performance practices,...and other contents.

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ORGANIZATIONAL

BEHAVIOR

ORGANIZATIONAL

BEHAVIOR

EMERGING KNOWLEDGE GLOBAL REALIT Y

McShane Von Glinow

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organizational behavior

e i g h t h e d i t i o n

Steven L McShane

Curtin University (Australia) and University of Victoria (Canada)

Mary Ann Von Glinow

Florida International University

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ORGANIZATIONAL BEHAVIOR:

EMERGING KNOWLEDGE. GLOBAL REALITY, EIGHTH EDITION

Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121 Copyright © 2018 by McGraw-Hill Education All rights reserved Printed in the United States of America Previous editions © 2015, 2013, 2010, and 2008 No part of this publication may be reproduced or distributed in any form or by any means, or stored in

a database or retrieval system, without the prior written consent of McGraw-Hill Education, including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning Some ancillaries, including electronic and print components, may not be available to customers outside the United States.

This book is printed on acid-free paper

1 2 3 4 5 6 7 8 9 0 LWI/LWI 21 20 19 18 17

ISBN 978-1-259-56279-2

MHID 1-259-56279-4

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Library of Congress Cataloging-in-Publication Data

Names: McShane, Steven Lattimore, author | Von Glinow, Mary Ann Young,

author.

Title: Organizational behavior : emerging knowledge, global reality / Steven

L McShane, The University of Western Australia, Mary Ann Von Glinow,

Florida International University.

Description: Eighth edition | New York, NY : McGraw-Hill Education, [2018]

Identifiers: LCCN 2016047935 | ISBN 9781259562792 (alk paper) | ISBN

1259562794 (alk paper)

Subjects: LCSH: Organizational behavior.

Classification: LCC HD58.7 M42 2018 | DDC 658—dc23 LC record available at

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The Internet addresses listed in the text were accurate at the time of publication The inclusion of a website does not indicate an endorsement by the authors or McGraw-Hill Education, and McGraw-Hill Education does not guarantee the accuracy of the information presented at these sites.

www.mheducation.com

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Steven L McShane

Steven L McShane is adjunct professor at the Curtin Graduate School of Business

(Australia) and the Peter B Gustavson School of Business, University of Victoria

(Canada) He previously held the positions of professor at Simon Fraser University

Business School in Canada and professor of management at the University of Western

Australia Business School He currently teaches in the Shanghai Jiao Tong University

IMBA program Early in his career, Steve taught at Queen’s University in Canada

Steve has received awards for his teaching quality and innovation, and receives high

ratings from students in Perth, Shanghai, Singapore, Manila, and other cities where

he has taught He is also a popular visiting speaker, having given dozens of invited

talks and seminars in recent years to faculty and students in the United States,

China, Canada, Malaysia, India, and other countries

Steve earned his PhD from Michigan State University, where he specialized in

organizational behavior and labor relations He also holds a Master’s of Industrial

Relations from the University of Toronto and an undergraduate degree from Queen’s

University in Canada Steve is a past president of the Administrative Sciences

Asso-ciation of Canada (the Canadian equivalent of the Academy of Management) and

served as director of graduate programs in Simon Fraser University’s business faculty

He has conducted executive programs with Nokia, TÜV-SÜD, Wesfarmers Group,

Main Roads WA, McGraw-Hill, ALCOA World Alumina Australia, and many other

organizations. 

Along with coauthoring Organizational Behavior, Eighth Edition, Steve is

lead coauthor of Canadian Organizational Behaviour, Ninth Edition (2016),

Or-ganisational Behaviour: Asia Pacific, Fifth Edition (2016), and M:

Organiza-tional Behavior, Third Edition (2016) He is also coauthor of editions or

translations of his organizational behavior books in China, India, Quebec,

Tai-wan, and Brazil Steve has published several dozen articles and conference papers

on workplace values, training transfer, organizational learning, exit–voice–loyalty,

employee socialization, wrongful dismissal, media bias in business magazines,

and other diverse topics

Steve enjoys spending his leisure time hiking, swimming, body board surfing,

canoeing, skiing, and traveling with his wife and two daughters

Mary Ann Von Glinow

Dr Von Glinow is a Knight Ridder Eminent Scholar Chair in International

Management at Florida International University and is senior editor for the

Journal of International Business Studies (JIBS) She served as 2010 to 2012

president of the Academy of International Business (AIB) and the 1994–1995

president of the Academy of Management (AOM) Previously on the Marshall

School faculty of the University of Southern California, she has an MBA and a

PhD in management science from Ohio State University, and is a Fellow of the

Academy of Management, the Academy of International Business, and the

Pan-Pacific Business Association She sits on 13 editorial review boards and

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numerous international panels and teaches in executive programs in Latin America, Asia, and the United States.

Dr Von Glinow has authored over 100 journal articles and 13 books, most of which have been translated into Chinese, Hindi, and Spanish Her book on organizational learning capability won a Gold Book Award from the Ministry of Economic Affairs in Taiwan in

2002 She is the 2005 recipient of the Academy of Management’s Distinguished Service Award, one of the highest honors bestowed by the Academy

Mary Ann has consulted widely and is on the board of directors of several tions, including the advisory board to Volvo-Geely in China She is actively involved in several animal welfare organizations and received the 1996 Humanitarian Award of the Year from Miami’s Adopt-a-Pet

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Chapter 5 Foundations of Employee Motivation 120

Chapter 6 Applied Performance Practices 152

Chapter 7 Decision Making and Creativity 180

TEAM PROCESSES

Chapter 8 Team Dynamics 212

Chapter 9 Communicating in Teams and

Organizations 246

Chapter 10 Power and Influence in the Workplace 276

Chapter 11 Conflict and Negotiation in the

Workplace 302

Chapter 12 Leadership in Organizational Settings 334

ORGANIZATIONAL PROCESSES

Chapter 13 Designing Organizational Structures 360

Chapter 14 Organizational Culture 386

Chapter 15 Organizational Change 414

ADDITIONAL CASES

Case 1 A Mir Kiss? 440

Case 2 Arctic Mining Consultants 441

Case 3 From REO to Nuclear to Nucor 443

Case 4 Going to the X-Stream 445

Case 5 Keeping Suzanne Chalmers 448

Case 6 The Regency Grand Hotel 449

Case 7 Simmons Laboratories 450

Case 8 Tamarack Industries 454

Case 9 The Outstanding Faculty Award 454

Case 10 The Shipping Industry Accounting Team 455

Case 11 Vêtements Ltée 456

Appendix A

Theory Building and Systematic Research Methods 457

Endnotes EN1 Organization Index I1 Name Index I5 Glossary/Subject Index I28

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The Journey Begins 26

Chapter Summary 26 Key Terms 27 Critical Thinking Questions 27

Case Study: Ancol Corp 28 Web Exercise: Diagnosing Organizational Stakeholders 28

Class Exercise: It All Makes Sense? 29

INDIVIDUAL BEHAVIOR AND PROCESSES 30

Chapter 2 Individual Behavior, Personality, and Values 30

MARS Model of Individual Behavior and Performance 32

Employee Motivation 32 Ability 33

Welcome to the Field of Organizational Behavior! 4

The Field of Organizational Behavior 4

Historical Foundations of Organizational Behavior 5

Why Study Organizational Behavior? 6

Contemporary Developments Facing

Organizations 8

Technological Change 8

Globalization 9

Emerging Employment Relationships 9

Global Connections 1.1: From Commute to Telecommute

in Japan 10

Increasing Workforce Diversity 11

Connect Self-Assessment 1.1: Are You a Good

Telecommuter? 11

The Systematic Research Anchor 14

Anchors of Organizational Behavior

Knowledge 14

Debating Point: Is There Enough Evidence to Support

Evidence-Based Management? 15

The Multidisciplinary Anchor 15

The Contingency Anchor 16

The Multiple Levels of Analysis Anchor 16

Perspectives of Organizational Effectiveness 16

Open Systems Perspective 17

Global Connections 1.2: Zara’s Open Systems

Thinking 18

Organizational Learning Perspective 19

Global Connections 1.3: Having a Hoot with

Organizational Learning 21

High-Performance Work Practices Perspective 21

Stakeholder Perspective 22

Global Connections 1.4: 21 Days of Y’ello Care 24

Connecting the Dots: An Integrative Model of

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Connect Assessment 3.2: How Much General Efficacy Do You Have? 68

Self-Connect Self-Assessment 3.3: What Is Your Locus of Control? 69

The Social Self 69 Self-Concept and Organizational Behavior 70

Perceiving the World around Us 70 Global Connections 3.1: Confirmation Bias Leads to False Arrests 72

Perceptual Organization and Interpretation 72

Connect Self-Assessment 3.4: How Much Perceptual Structure Do You Need? 72

Specific Perceptual Processes and Problems 73

Stereotyping in Organizations 73

Global Connections 3.2: Perceptual Barriers to Women on Corporate Boards 76

Attribution Theory 77 Self-Fulfilling Prophecy 79 Other Perceptual Effects 80

Global Mindset: Developing Perceptions across Borders 84 Global Connections 3.3: Encouraging a Global

Mindset in a Global Business 85

Developing a Global Mindset 85

Chapter Summary 86 Key Terms 87 Critical Thinking Questions 87

Case Study: Hy Dairies, Inc 88

Web Exercise: Diversity and Stereotyping on Display in Corporate Websites 89

Team Exercise: Personal and Organizational Strategies for Developing a Global Mindset 89

Chapter 4 Workplace Emotions, Attitudes, and Stress 90

Emotions in the Workplace 92 Connect Self-Assessment 4.1: What Is Your Emotional Personality? 92

Types of Emotions 92 Emotions, Attitudes, and Behavior 93 Cognitive Dissonance 96

Connect Self-Assessment 2.4: Are You a Sensing or

Intuitive Type? 43

Debating Point: Should Companies Use Personality Tests

to Select Job Applicants? 44

Values in the Workplace 45

Global Connections 2.2: Values Congruence Generates

Bags of Enthusiasm and Intent 48

Ethical Values and Behavior 48

Three Ethical Principles 49

Moral Intensity, Moral Sensitivity, and Situational

Influences 49

Global Connections 2.3: Alcoa Executive Sets Ethical

Standard in Russia 50

Supporting Ethical Behavior 51

Values across Cultures 51

Individualism and Collectivism 52

Connect Self-Assessment 2.6: How Much Do You Value

Individualism and Collectivism? 53

Caveats about Cross-Cultural Knowledge 54

Cultural Diversity in the United States 55

Chapter Summary 55

Key Terms 56

Critical Thinking Questions 56

Case Study: SNC-Lavalin Group Inc 57

Class Exercise: Test Your Knowledge of Personality 58

Class Exercise: Personal Values Exercise 60

Team Exercise: Ethics Dilemma Vignettes 60

Chapter 3 Perceiving Ourselves and

Others in Organizations 62

Self-Concept: How We Perceive Ourselves 64

Self-Concept Complexity, Consistency,

and Clarity 64

Connect Self-Assessment 3.1: How Much Does Work

Define Your Self-Concept? 65

Self-Enhancement 66

Self-Verification 67

Self-Evaluation 68

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Chapter 5 Foundations of Employee Motivation 120

Global Connections 5.1: DHL Express Employees Get Engaged 122

Employee Engagement 122 Employee Drives and Needs 123

Individual Differences in Needs 124 Maslow’s Needs Hierarchy Theory 124

Connect Self-Assessment 5.1: How Strong Are Your Growth Needs? 126

Intrinsic and Extrinsic Motivation 126 Learned Needs Theory 127

Connect Self-Assessment 5.2: How Strong Are Your Learned Needs? 128

Four-Drive Theory 129

Expectancy Theory of Motivation 130

Expectancy Theory in Practice 131

Organizational Behavior Modification and Social Cognitive Theory 133

Organizational Behavior Modification 133

Global Connections 5.2: AirBaltic Motivates Employee Involvement and Learning with Gamification 135

Social Cognitive Theory 136

Goal Setting and Feedback 137 Connect Self-Assessment 5.3: What Is Your Goal Orientation? 138

Characteristics of Effective Feedback 138 Sources of Feedback 139

Evaluating Goal Setting and Feedback 140

Case Study: Predicting Harry’s Work Effort 146

Case Study: Cincinnati Super Subs 147

Class Exercise: Needs Priority Exercise 148

Class Exercise: The Learning Exercise 149

Team Exercise: Bonus Decision Exercise 150

Debating Point: Is Having Fun at Work Really a Good

Idea? 97

Emotions and Personality 97

Managing Emotions at Work 98

Emotional Display Norms across

Connect Self-Assessment 4.2: How

Well Do You Recognize and Regulate

Emotions? 100

Emotional Intelligence Outcomes and

Development 101

Job Satisfaction 102

Job Satisfaction and Work Behavior 103

Job Satisfaction and Performance 104

Job Satisfaction and Customer

Building Organizational Commitment 107

Work-Related Stress and Its Management 108

Connect Self-Assessment 4.4: How Stressed

Are You? 109

General Adaptation Syndrome 109

Consequences of Distress 109

Stressors: The Causes of Stress 110

Global Connections 4.2: Chronic Work Overload in

China 111

Individual Differences in Stress 112

Connect Self-Assessment 4.5: Are You a

Workaholic? 112

Managing Work-Related Stress 113

Connect Self-Assessment 4.6: How Do You Cope with

Stressful Situations? 115

Chapter Summary 115

Key Terms 116

Critical Thinking Questions 116

Case Study: Diana’s Disappointment: The Promotion

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Connect Self-Assessment 6.4: Do You Have a Proactive Personality? 175

Chapter Summary 175 Key Terms 176 Critical Thinking Questions 176

Case Study: Yakkatech, Inc 177

Team Exercise: Is Student Work Enriched? 178

Chapter 7 Decision Making and Creativity 180

Rational Choice Decision Making 182

Rational Choice Decision-Making Process 182 Problems with Rational Choice Decision Making 184

Identifying Problems and Opportunities 184

Problems with Problem Identification 184 Identifying Problems and Opportunities More Effectively 186

Searching for, Evaluating, and Choosing Alternatives 186

Problems with Goals 187 Problems with Information Processing 187 Problems with Maximization 189

Evaluating Opportunities 190 Emotions and Making Choices 190 Intuition and Making Choices 191

Connect Self-Assessment 7.1: What Is Your Preferred Decision-Making Style? 192

Making Choices More Effectively 192

Implementing Decisions 193 Evaluating Decision Outcomes 194

The Creative Process 196

Connect Self-Assessment 7.2: How Well Do You Engage in Divergent Thinking? 197

Characteristics of Creative People 198

Connect Self-Assessment 7.3: Do You Have a Creative Personality? 199

Organizational Conditions Supporting Creativity 199

Activities That Encourage Creativity 200

Employee Involvement in Decision Making 202

Benefits of Employee Involvement 202

Global Connections 7.2: Brasilata, the Ideas Company 203

Contingencies of Employee Involvement 203

Chapter 6 Applied Performance

Practices 152

The Meaning of Money in the Workplace 154

Connect Self-Assessment 6.1: What Is Your Attitude

toward Money? 154

Financial Reward Practices 155

Membership- and Seniority-Based Rewards 155

Global Connections 6.1: Mega Reward for Tiens Group

Employees 156

Job Status–Based Rewards 156

Competency-Based Rewards 157

Performance-Based Rewards 157

Improving Reward Effectiveness 159

Debating Point: Is It Time to Ditch the Performance

Review? 160

Link Rewards to Performance 160

Ensure That Rewards Are Relevant 161

Use Team Rewards for Interdependent Jobs 161

Ensure That Rewards Are Valued 161

Watch Out for Unintended Consequences 161

Global Connections 6.2: When Rewards

Go Wrong 162

Job Design Practices 162

Job Design and Work Efficiency 162

Scientific Management 163

Problems with Job Specialization 164

Job Design and Work Motivation 165

Core Job Characteristics 166

Critical Psychological States 166

Individual Differences 167

Social and information Processing Job Characteristics 167

Job Design Practices That Motivate 168

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Debating Point: Are Virtual Teams More Trouble Than They’re Worth? 236

Team Decision Making 237

Constraints on Team Decision Making 237 Improving Creative Decision Making

in Teams 238

Chapter Summary 240 Key Terms 241 Critical Thinking Questions 241

Case Study: Conifer Corp.  241

Team Exercise: Team Tower Power 243

Team Exercise: Human Checkers 243

Team Exercise: Survival on the Moon 244

Chapter 9 Communicating in Teams and Organizations 246

The Importance of Communication 248

Workplace Communication through Social Media 253

Global Connections 9.1: Bosch Employees Improve Collaboration through Social Media 255

Nonverbal Communication 255

Choosing the Best Communication Channel 257

Synchronicity 257 Social Presence 258 Social Acceptance 258 Media Richness 258

Global Connections 9.2: Multicommunicating across the Pacific 261

Communication Channels and Persuasion 261

Communication Barriers (Noise) 262

Information Overload 263

Cross-Cultural and Gender Communication 264 Global Connections 9.3: Politely Waiting for Some Silence 265

Nonverbal Differences across Cultures 265 Gender Differences in Communication 265

Improving Interpersonal Communication 266

Getting Your Message Across 266 Active Listening 267

Critical Thinking Questions 206

Case Study: Employee Involvement Cases 207

Team Exercise: Where in the World Are We? 208

Class Exercise: The Hopping Orange 211

Class Exercise: Creativity Brainbusters 211

TEAM PROCESSES 212

Chapter 8 Team Dynamics 212

Teams and Informal Groups 214

Informal Groups 215

Advantages and Disadvantages of

Teams 216

The Challenges of Teams 217

A Model of Team Effectiveness 219

Organizational and Team Environment 219

Global Connections 8.1: European Firms

Enhance Team Performance with Obeya

Global Connections 8.3: Buurtzorg Nederland’s

Self-Directed Nursing Teams 234

Success Factors for Self-Directed Teams 235

Virtual Teams 235

Success Factors for Virtual Teams 235

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Connect Self-Assessment 10.2: What Is Your Approach to Influencing Coworkers? 291

Types of Influence Tactics 291 Consequences and Contingencies of Influence Tactics 295

Organizational Politics 296 Connect Self-Assessment 10.3: How Politically Charged Is Your School? 296

Global Connections 10.3: Playing Politics with the Vacation Schedule 297

Minimizing Organizational Politics 297

Connect Self-Assessment 10.4: How Machiavellian Are You? 298

Chapter Summary 298 Key Terms 299 Critical Thinking Questions 299

Case Study: Resonus Corporation 300

Team Exercise: Deciphering the Network 301

Team Exercise: Managing Your Boss 301

Chapter 11 Conflict and Negotiation in the Workplace 302

The Meaning and Consequences of Conflict 304

Is Conflict Good or Bad? 304

The Emerging View: Task and Relationship Conflict 306

 Separating Task from Relationship Conflict 307

Conflict Process Model 308 Structural Sources of Conflict in Organizations 308

Incompatible Goals 309 Differentiation 309 Interdependence 309 Scarce Resources 310 Ambiguous Rules 310 Communication Problems 310

Interpersonal Conflict-Handling Styles 311 Connect Self-Assessment 11.1: What Is Your Preferred Conflict-Handling Style? 312

Choosing the Best Conflict-Handling Style 312

Cultural and Gender Differences in Conflict-Handling Styles 314

Structural Approaches to Conflict Management 314

Emphasizing Superordinate Goals 314 Reducing Differentiation 315

Improving Communication and Mutual Understanding 315

Connect Self-Assessment 9.1: Are You an Active

Listener? 268

Improving Communication throughout the

Hierarchy 268

Workspace Design 268

Internet-Based Organizational Communication 268

Direct Communication with Top Management 269

Communicating through the Grapevine 270

Grapevine Characteristics 270

Grapevine Benefits and Limitations 270

Debating Point: Should Management Use the Grapevine to

Communicate to Employees? 271

Chapter Summary 271

Key Terms 272

Critical Thinking Questions 272

Case Study: Silver Lines: Challenges in Team

The Meaning of Power 278

Sources of Power in Organizations 280

Legitimate Power 280

Global Connections 10.1: Deference to Authority Leads

People to the Extreme 281

The Power of Social Networks 286

Connect Self-Assessment 10.1: Do You Have a Guanxi

Orientation? 287

Social Capital and Sources of Power 287

Global Connections 10.2: Energy Company Improves

Productivity through Social Networks 287

Gaining Power through Social Networks 288

Consequences of Power 290

Influencing Others 290

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Global Connections 11.1: L’Oréal Canada Improves

Mutual Understanding across Generations 316

Reducing Interdependence 316

Increasing Resources 317

Clarifying Rules and Procedures 317

Third-Party Conflict Resolution 317

Choosing the Best Third-Party Intervention

Strategy 318

Resolving Conflict through Negotiation 319

Distributive versus Integrative Approaches to

Negotiation 319

Preparing to Negotiate 320

The Negotiation Process 321

The Negotiation Setting 324

Gender and Negotiation 325

Chapter Summary 326

Key Terms 327

Critical Thinking Questions 327

Case Study: Elaine’s Challenging Experience 328

Class Exercise: The Contingencies of Conflict Handling 329

Team Exercise: Kumquat Conflict Role Play 332

Chapter 12 Leadership in Organizational

Transformational Leadership Perspective 337

Develop and Communicate a Strategic Vision 338

Global Connections 12.2: Lasvit’s Vision of Breathtaking

Light and Design 338

Model the Vision 340

Encourage Experimentation 340

Build Commitment toward the Vision 340

Connect Self-Assessment 12.1: What Are Your

Transformational Leadership Tendencies? 340

Transformational Leadership and Charisma 341

Global Connections 12.3: Tencent’s Uncharismatic

Tranformational Leader 341

Evaluating the Transformational Leadership Perspective 342

Managerial Leadership Perspective 342

Task-Oriented and People-Oriented Leadership 343

Connect Self-Assessment 12.2: What Is Your Preferred

Managerial Leadership Style? 344

Servant Leadership 344

Path–Goal Leadership Theory 345

Other Managerial Leadership Theories 347

Leadership Substitutes 349

4

Implicit Leadership Perspective 349

Prototypes of Effective Leaders 349 The Romance of Leadership 350

Global Connections 12.4: Semco CEO Warns against the Romance of Charismatic Leadership 350

Connect Self-Assessment 12.3: Do Leaders Make a Difference? 350

Personal Attributes Perspective of Leadership 351

Authentic Leadership 353

Debating Point: Should Leaders Really Be

Authentic All the Time? 354

Personal Attributes Perspective Limitations and Practical Implications 354

Cross-Cultural and Gender Issues in Leadership 355

Gender and Leadership 355

Chapter Summary 356 Key Terms 357 Critical Thinking Questions 357

Case Study: A Window on Life 358

Team Exercise: Leadership Diagnostic Analysis 359

ORGANIZATIONAL PROCESSES 360

Chapter 13 Designing Organizational Structures 360

Division of Labor and Coordination 362

Division of Labor 362 Coordination of Work Activities 363

Elements of Organizational Structure 365

Span of Control 365

Global Connections 13.1: BBC Further Flattens the Hierarchy 367

Centralization and Decentralization 369

Debating Point: Should Organizations Cut Back Middle Management? 369

Formalization 369 Mechanistic versus Organic Structures 370

Connect Self-Assessment 13.1: Which Organizational Structure Do You Prefer? 371

Forms of Departmentalization 371

Simple Structure 371 Functional Structure 371

Global Connections 13.2: Chapman’s Ice Cream Grows Its Organizational Structure 372

Divisional Structure 373

Source: Tim Eulitz/Wikimedia

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Changing and Strengthening Organizational Culture 401

Actions of Founders and Leaders 401 Align Artifacts with the Desired Culture 402 Introduce Culturally Consistent Rewards and Recognition 402

Support Workforce Stability and Communication 403 Use Attraction, Selection, and Socialization

for Cultural Fit 404

Global Connections 14.1: Spinning the Wheel for Culture Fit 404

Organizational Socialization 404

Learning and Adjustment Process 405 Psychological Contracts 405

Stages of Organizational Socialization 406

Global Connections 14.2: Connected Socialization

at trivago 407

Improving the Socialization Process 408

Chapter Summary 409 Key Terms 409 Critical Thinking Questions 410

Case Study: Hillton’s Transformation 410

Team Exercise: Organizational Culture Metaphors 411

Class Exercise: Diagnosing Corporate Culture Proclamations 413

Chapter 15 Organizational Change 414

Lewin’s Force Field Analysis Model 416 Understanding Resistance to Change 418

Why Employees Resist Change 419

Connect Self-Assessment 15.1: Are You Ready for Change? 419

Unfreezing, Changing, and Refreezing 421

Creating an Urgency for Change 421

Global Connections 15.1: Panasonic Generates an Urgency for Change by Revealing the Truth 422

Connect Self-Assessment 15.2: Are You Tolerant of Change? 423

Reducing the Restraining Forces 423 Refreezing the Desired Conditions 425

Global Connections 15.2: Communicate, Involve, or Change Your People 426

Leadership, Coalitions, and Pilot Projects 426

Transformational Leadership and Change 426 Coalitions, Social Networks, and Change 427

Global Connections 13.3: Toyota’s Evolving

Global Connections 13.5: Matrix Structure Troubles at

Hana Financial Group 378

Connect Self-Assessment 13.2: Does

Your Job Require an Organic or Mechanistic

Structure? 382

Organizational Strategy 382

Chapter Summary 383

Key Terms 383

Critical Thinking Questions 384

Case Study: Merritt’s Bakery 384

Team Exercise: The Club Ed Exercise 385

Chapter 14 Organizational Culture 386

Elements of Organizational Culture 388

Espoused versus Enacted Values 389

Content of Organizational Culture 390

Connect Self-Assessment 14.1: Which Corporate Culture

Rituals and Ceremonies 393

Physical Structures and Symbols 394

Is Organizational Culture Important? 395

Meaning and Potential Benefits of a

Organizational Culture and Business Ethics 398

Merging Organizational Cultures 399

Bicultural Audit 399

Strategies for Merging Different Organizational

Cultures 399

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Global Connections 15.3: Trailblazing Viral Change at

RSA Insurance 428

Pilot Projects and Diffusion of Change 428

Four Approaches to Organizational Change 430

Action Research Approach 430

Debating Point: What’s the Best Speed for

Organizational Change? 431

Appreciative Inquiry Approach 432

Global Connections 15.4: Appreciative Inquiry Guides

Leadership at Toronto Western Hospital 434

Large Group Intervention Approach 434

Parallel Learning Structure Approach 435

Cross-Cultural and Ethical Issues in Organizational

Change 435

Organizational Behavior: The Journey Continues 436

Chapter Summary 436

Key Terms 437

Critical Thinking Questions 437

Case Study: TransAct Insurance Corporation 438

Team Exercise: Strategic Change Incidents 439

ADDITIONAL CASES

Case 1: A Mir Kiss? 440

Case 2: Arctic Mining Consultants 441

Case 3: From REO to Nuclear to Nucor 443

Case 4: Going to the X-Stream 445

Case 5: Keeping Suzanne Chalmers 448

Case 6: The Regency Grand Hotel 449

Case 7: Simmons Laboratories 450

Case 8: Tamarack Industries 454

Case 9: The Outstanding Faculty Award 454

Case 10: The Shipping Industry Accounting Team 455

Case 11: Vêtements Ltée 456

Appendix A

Theory Building and Systematic Research Methods 457

Endnotes EN1 Organization Index I1 Name Index I5 Glossary/Subject Index I28

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Welcome to the exciting world of organizational behavior! Knowledge is replacing structure Social media and virtual teams are transforming the way employees work to-gether Values and self-leadership are replacing command-and-control management Companies are looking for employees with emotional intelligence and effective team-work skills, not just technical smarts

infra-Organizational Behavior, Eighth Edition, is written in the context of these emerging

workplace realities This edition explains how emotions are the foundation of employee motivation, attitudes, and decisions; how social networks generate power and shape communication patterns; how self-concept influences individual behavior, team cohe-sion, and leadership; and how adopting a global mindset has become an important employee characteristic in this increasingly interconnected world This book also presents the reality that organizational behavior is not just for managers; it is relevant and valuable to anyone who works in and around organizations

Linking Theory with Reality

Every chapter of Organizational Behavior is filled with examples to make OB knowledge

more meaningful as well as to illuminate the relevance and excitement of this field These stories about real people and organizations translate academic theories into useful knowl-edge and real-life applications For example, we describe how employees at Airbnb, the San Francisco–based online vacation accommodation company, are intrinsically motivated through autonomy and personal growth; how John Dean, executive chair of Hawaii’s Central Pacific Bank, helped his executive team work together more effectively by learning about each other’s personalities; how easyJet CEO Carolyn McCall revived the discount airline through transformational leadership behaviors and effective leadership skills; how police forces in San Diego and Baltimore are improving officers’ interpersonal skills through emotional intelligence training; and how David Sacks (cofounder of Yammer and one of PayPal’s earliest executives) applied change leadership practices to transform Silicon Valley start-up Zenefits into a more compliance-driven company

These real-life stories, which the authors personally selected and incorporated into this book, appear in many forms Every chapter is filled with photo captions and in-text anec-

dotes about work life Global Connections features “connect” OB concepts with events in

real-world companies around the planet Case studies in each chapter also connect OB concepts to the emerging workplace realities These anecdotes and detailed descriptions discuss large and small organizations around the world and in a wide range of industries

Global Focus

From its first edition, this book has been crafted around the reality of increasing ization The Eighth Edition continues this global focus by introducing the theme in the first chapter and by discussing global and cross-cultural issues in many other chapters Furthermore, every chapter includes truly global examples, not just how American com-panies operate in other parts of the world For example, we describe how New Zealand drinks manufacturer Frucor Beverages maintains a highly engaged workforce; how China’s e-commerce giant Alibaba Group has nurtured a strong organizational culture; how Buurtzorg Nederland organized its 8,000 professionals into self-directed teams to become one of the world’s best-managed community health care organizations; how In-fosys, one of India’s leading technology companies, is improving employee creativity and decision making through design thinking principles and practices; how the president

global-of Panasonic Corporation created an urgency for change at the Japanese conglomerate; and how trivago, the German-based hotel metasearch company, puts considerable resources into the employee socialization process

preface

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Contemporary Theory Foundation

Vivid real-world examples and practices are valuable only if they are connected to good

theory. Organizational Behavior has developed a reputation for its solid foundation in

con-temporary and classic research and writing This evidence-based foundation is apparent from the number and quality of literature cited in each chapter, including dozens of articles, books, and other sources The most recent literature receives thorough coverage, resulting

in what we believe is the most up-to-date organizational behavior textbook available These references also reveal that we reach out to marketing, information management, human resource management, and other disciplines for new ideas This book is rigorously focused

on information that readers value, namely OB knowledge and practices Consequently, with a few classic exceptions, we avoid writing a “who’s who” book; most scholars are named in the references, not in the main text

One of the driving forces for writing Organizational Behavior is to provide a more

responsive conduit for emerging OB knowledge to reach students, practitioners, and fellow

scholars To its credit, Organizational Behavior is apparently the first major OB book to

discuss the full self-concept model (not just core self-evaluation), workplace emotions, social identity theory, global mindset, four-drive theory, predictors of moral intensity, specific elements of social networks, appreciative inquiry, affective events theory (but without the jargon), somatic marker hypothesis (also without the jargon), virtual teams, mindfulness in ethical behavior, Schwartz’s values model, employee engagement, learning orientation, social and information processing characteristics of job design, and several other groundbreaking topics This edition continues this leadership by introducing the latest knowledge on design thinking, self-concept distinctiveness versus inclusion, and the four factors to consider when selecting the best communication channel

Organizational Behavior Knowledge

for Everyone

Another distinctive feature of Organizational Behavior is that it is written for everyone

in organizations, not just managers The philosophy of this book is that everyone who works in and around organizations needs to understand and make use of organizational behavior knowledge People throughout the organization—systems analysts, production employees, accounting professionals—are taking on more responsibilities as companies remove layers of management and give the rest of us more autonomy and accountability for our work outcomes This book helps everyone make sense of organizational behavior, and provides the conceptual tools to work more effectively in the workplace

Active Learning and Critical Thinking Support

We teach organizational behavior, so we understand how important it is to use a textbook that offers deep support for active learning and critical thinking Business school accreditation associations also emphasize the importance of the learning experience, which further reinforces our attention on classroom activities This Eighth Edition in-cludes more than two dozen case studies in various forms and levels of complexity, as well as four dozen self-assessments, most of which have been empirically tested and validated This book is also a rich resource for in-class activities, some of which are not available in other organizational behavior books, such as the Personal Values Exercise, Employee Involvement Cases, Deciphering the (Social) Network, Test Your Knowledge

of Personality, and the Cross-Cultural Communication Game

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Changes to the Eighth Edition

Organizational Behavior, Eighth Edition, incorporates numerous improvements, thanks

to reviews by dozens of organizational behavior instructors across several countries, along with our regular practice of scanning the diverse literature for new ideas that have gained sufficient evidential support Almost every chapter in this edition has noticeable updates and revisions, but the most substantial changes have occurred in Chapter 1 (introduction to OB), Chapter 7 (decision making and creativity), Chapter 9 (communi-cation), and Chapter 11 (conflict and negotiation). 

Together with dozens of conceptual improvements, this edition replaces most ples with new real-world stories that satisfy our criteria of being recent, interesting, and relevant Almost all of the chapter-opening case studies are new; only two opening vi-gnettes remain from the previous edition, both of which have been updated Most cap-tioned photos and Global Connections features are new or updated We have also added dozens of new in-text examples as well as several new case studies for class discussion

exam-or course assignments A unique strength of Organizational Behaviexam-or, Eighth Edition

(and previous editions), is that the authors personally researched and wrote all of the conceptual content, in-text examples, captioned photos, and features This provides bet-ter integration of the knowledge and ensures that the examples are truly relevant and useful additions to the learning experience

Here are the main conceptual improvements in Organizational Behavior, Eighth Edition:

• Chapter 1: Introduction to the Field of Organizational Behavior—This chapter

has been substantially updated, revised, and reorganized from the previous edition

We have incorporated an integrated model of organizational behavior to help students visualize the relationship among the main concepts throughout this book Technological change has been added in the section on contemporary developments facing organizations The section on perspectives of organizational effectiveness has been streamlined and moved to the latter part of the chapter Most topics have been rewritten, but particularly the text on the four contemporary developments, why study OB, and several aspects of organizational effectiveness

• Chapter 2: Individual Behavior, Personality, and Values—Several topics in this

chapter have been updated, particularly coverage of the five-factor model of sonality and work performance, values and individual behavior, moral sensitivity, and cultural diversity within the United States

per-• Chapter 3: Perceiving Ourselves and Others in Organizations—This book apparently

pioneered the full model of self-concept and its relevance to organizational behavior This edition further develops this important topic and provides new information

on the opposing motives for distinctiveness and inclusion The section on typing also includes new information about stereotype threat

stereo-• Chapter 4: Workplace Emotions, Attitudes, and Stress—This edition significantly

revises and updates discussion on four key workplace stressors, with new writing about organizational constraints and interpersonal conflict as stressors Other parts

of this chapter received minor revision, such as discussion of attitude–behavior contingencies

• Chapter 5: Foundations of Employee Motivation—New to this edition is the topic

of intrinsic and extrinsic motivation, as well as the question of whether introducing extrinsic sources of motivation reduces intrinsic motivation We have also refined the writing on four-drive theory, drives and needs, Maslow’s needs hierarchy, and feedback

• Chapter 6: Applied Performance Practices—The previous edition was among the

first OB books to introduce recent knowledge about the social and information

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processing characteristics of jobs This edition further refines that emerging topic

It also has updated content on the meaning of money, supporting empowerment, and self-leadership effectiveness

• Chapter 7: Decision Making and Creativity—This chapter has been substantially

revised and updated in several ways The emerging topic of design thinking was briefly introduced in the previous edition, but this chapter now presents the topic fully as a set of principles and activities to improve creative decision making Another area with substantial rewriting is the topic of problems with information processing when choosing alternatives Several topics have also received minor updates, particularly on solution-focused problems, problems with goals, implicit favorite bias, and satisficing (problems with maximization)

• Chapter 8: Team Dynamics—This edition refines discussion introduced in the

previous edition on the three characteristics that distinguish types of teams It also updates and offers more detail about social loafing This chapter incorporates task variability and analyzability (introduced in Chapter 6) as task characteristics that influence the need for teamwork Several other topics have also been revised, such

as team mental models (as part of team development), team development through team building, the team cohesion–performance relationship, and brainstorming

• Chapter 9: Communicating in Teams and Organizations—This edition includes a

complete revision and update on choosing the best communication medium This topic now fully discusses four key factors (synchronicity, social presence, social acceptance, and media richness), along with their associated contingencies to communication channel selection This edition further shifts the focus toward various forms of digital communication (less focus on email alone) It also has minor revisions on the encoding–decoding process and the benefits of enterprise social media

• Chapter 10: Power and Influence in the Workplace—This chapter has a few minor

changes, such as on the topic of nonsubstitutability

• Chapter 11: Conflict and Negotiation in the Workplace—This edition substantially

reorganizes and updates the entire section on resolving conflict through negotiation The new or revised topics include distributive and integrative approaches to bar-gaining, understanding needs, bargaining zone dynamics, how BATNA increases bargaining power, the importance of listening, and strategies for making conces-sions This edition also introduces recent knowledge about gender and negotiation Elsewhere in this chapter, we update coverage on task and relationship conflict, including further clarification of these concepts, reference to process conflict, and problems resulting from relationship conflict

• Chapter 12: Leadership in Organizational Settings—The previous edition

sub-stantially revised and reorganized this chapter Aside from new examples and references, this edition has relatively minor changes, notably on the topics of communicating the vision, evaluating path–goal theory, and the personal attributes

of effective leaders

• Chapter 13: Designing Organizational Structures—This chapter has minor

revisions, notably on span of control and on the structural contingency of diverse versus integrated environments

• Chapter 14: Organizational Culture—Along with replacing most examples and

updating references, this chapter has a number of subtle changes, particularly on the topics of espoused versus enacted values, content of organizational culture, types of organizational culture artifacts, the integration strategy for merging cultures, and how founders and leaders shape and strengthen culture

• Chapter 15: Organizational Change—The main changes to this chapter are examples

and updated literature references

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Organizational behavior is a fascinating subject It is also incredibly relevant and

valu-able, which becomes apparent while developing a world-class book such as tional Behavior, Eighth Edition Throughout this project, we witnessed the power of

Organiza-teamwork, the excitement of creative thinking, and the motivational force of the vision that we collectively held as our aspiration The tight coordination and innovative synergy was evident throughout this venture Our teamwork is even more amazing when you con-sider that most team members on this project are scattered throughout the United States, and the lead coauthor (Steve) spends most of his time on the other side of the planet!

Executive brand manager Mike Ablassmeir led the development of Organizational Behavior with unwavering enthusiasm and foresight Katie Eddy and Tracey Douglas

orchestrated the daily process with superhuman skill and determination, which is ticularly important given the magnitude of this revision, the pressing deadlines, and the 24-hour time zones in which we operated Jennifer Blankenship, our photo researcher, continues to amaze us She tracked down photos that we sought from every corner of the globe Jessica Cuevas created a refreshing book design that elegantly incorporated the writing, exhibits, anecdotes, photos, and many other resources that we pack into this volume We also extend our thanks to Sharon O’Donnell for superb copyediting, Christine Vaughan for leading the production process like a precision timepiece, Judy Bulin for her work on Connect, Integra for its work on the test bank, Kepos Media for its work on LearnSmart, and Necco McKinley for her excellent marketing and sales development work Thanks to you all This has been a truly wonderful journey!

par-Several dozen instructors around the world reviewed parts or all of Organizational Behavior, Eighth Edition, or related editions in other countries over the past few years

Their compliments were energizing, and their suggestions significantly improved the final product The following people from U.S colleges and universities provided the most recent feedback for improvements specifically for this edition:

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We also extend our sincere thanks to Eileen Hogan for exceptional work on revision

of the test bank, as well as to Judith Bulin, Linda M Hoffman, and Todd Korol for their

assistance in creating and updating the Connect and LearnSmart content In addition, we

thank the many instructors in the United States and abroad who contributed cases and

exercises to this edition of Organizational Behavior.

Steve also extends special thanks to his students for sharing their learning experiences

and assisting with the development of this organizational behavior textbook in the United

States, Canada, and the Asia-Pacific region Steve is honored to work with Mary Ann

Von Glinow as well as with his other coauthors, including Kevin Tasa (Schulich School

of Business, York University) and Sandra Steen (University of Regina) on the Canadian

edition, and Mara Olekalns (Melbourne Business School), Alex Newman (Deakin

University), and Tony Travaglione (Curtin University) on the Asia-Pacific edition He

also thanks the coauthors of other translations and adaptations Most of all, Steve is

forever indebted to his wife, Donna McClement, and to their wonderful daughters,

Bryton and Madison Their love and support give special meaning to Steve’s life

Mary Ann would also like to acknowledge the many professionals at McGraw-Hill/

Irwin who have worked to make the Eighth Edition a reality In addition, she would like

to thank the many, many students who have used and hopefully enjoyed this book, so a

big shout-out to all students everywhere who have used and enjoyed previous editions of

this book She would also like to thank the faculty and staff at Florida International

University Most importantly, though, Mary Ann thanks coauthor Steve McShane for his

tireless efforts Finally, Mary Ann would like to thank her family, starting with the

immediate ones, Chloe, Jackson, Boomer, and Blue She would also like to thank John,

Rhoda, Lauren, Lindsay, and Christen She also acknowledges the critical role that some

very special people play in her life: Janet, Peter M., Bill, Lana, Karen, Alan, Danny,

Peter W., Letty D., John D., CEK, and Jeff, Damian, Debra, Mary T., Linda C., Joanne M.,

and Susan RW Thanks to you all!

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AN INTERNATIONAL AUTHOR TEAM FOR THE GLOBAL EMPLOYEE

Drawing on their extensive international teaching and research experience, the authors have produced a book that is highly regarded for its global focus Steve McShane teaches

in Australia and throughout Asia, and gives talks each year to schools throughout Asia and North America As director of the Center for International Business Education, Mary Ann Von Glinow regularly visits and conducts research in South America, China, and elsewhere around the world.

DEBATING POINTS

Debating Point boxes help students think critically and recognize that even seemingly obvious ideas have logical counterarguments Debating Points also raise the bar by focusing on topics that are central to the world of work.

REAL-WORLD EXAMPLES BRING OB TO LIFE

Every chapter is filled with examples to make OB knowledge more meaningful and reflect the relevance and excitement of this field Opening case studies set the stage; captioned photos depict OB concepts; and Global Connections features present more international examples of OB concepts in practice.

SELF-ASSESSMENTS

Self-assessments are an important and engaging part of the active learning process This edition features self-assessments associated with content in every chapter, such as power-distance orientation, romance of leadership, preferred organizational structure, work centrality, sensing-intuitive type, and guanxi orientation These self-assessments are available online in Connect with self-scoring results and written feedback.

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supporting the learning process

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Online Learning Center (www.mhhe.com/mcshane8e)

The Online Learning Center provides instructors with the following teaching tools

INSTRUCTOR’S MANUAL

This is one of the few textbooks for which the authors write the Instructor’s Manual, ensuring that the instructor materials represent the textbook’s content and support in-structor needs Each chapter includes the learning objectives, glossary of key terms, a chapter synopsis, complete lecture outline with thumbnail images of corresponding PowerPoint slides, and suggested answers to the end-of-chapter discussion questions Also included are teaching notes for the chapter case(s), team exercises, and self- assessments The Instructor’s Manual also provides complete teaching notes for the additional cases

TEST BANK AND EZ TEST

Updated for this edition, the Test Bank includes more than 2,000 multiple-choice, true/false, and essay questions Each question identifies the relevant learning objective, Bloom’s taxonomy level, AACSB standard for assurance of learning, and difficulty level

In addition, McGraw-Hill’s testing software, EZ Test, allows you to easily query for learning objectives that directly relate to the learning objectives for your course; the reporting features of EZ Test also enable you to aggregate student results, making the collection and presentation of assurance-of-learning data quick and easy The program provides a means to create tests that are book-specific and even add your own ques-tions Multiple versions of a test can be created, and any test can be exported for use with course management systems such as WebCT and Blackboard or with any other course management system

POWERPOINT PRESENTATION SLIDES

The PowerPoint slides have been prepared by the authors, allowing seamless tion between the slides and the Instructor’s Manual Each chapter includes more than

integra-two dozen slides, featuring key points, photographs, and figures from the text, as well

as teaching tips and notes for using the slides

Organizational Behavior, Eighth Edition, includes a variety of supplemental materials to help instructors prepare and present the material in this textbook more effectively.

student and instructor support

materials

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Video Resources

MANAGER’S HOT SEAT

Now instructors can put students in the hot seat with access to an interactive program Students watch real managers apply their years of experience when confronting un-scripted issues As the scenario unfolds, questions about how the manager is handling the situation pop up, forcing the student to make decisions along with the manager At the end of the scenario, students watch a post-scenario interview with the manager, to see how their responses matched up with the manager’s decisions The Manager’s Hot Seat videos are now available as assignments in Connect

AACSB Statement

McGraw-Hill Education is a proud corporate member of AACSB International standing the importance and value of AACSB accreditation, the authors of Organiza-tional Behavior, Eighth Edition, recognize the curricula guidelines detailed in the

Under-AACSB standards for business accreditation by connecting selected questions in the text and/or the Test Bank to the six general knowledge and skill guidelines in the AACSB standards

The statements contained in Organizational Behavior, Eighth Edition, are provided

only as a guide for the users of this textbook The AACSB leaves content coverage and assessment within the purview of individual schools, the mission of the school, and the faculty While Organizational Behavior and the teaching package make no claim of any specific AACSB qualification or evaluation, we have within Organizational Behavior labeled selected questions according to the six general knowledge and skill areas

Ebook Options

Ebooks are an innovative way for students to save money and to “go green.” McGraw-Hill’s ebooks are typically 40% off the bookstore price Students have the choice between an online and a downloadable CourseSmart ebook

Through CourseSmart, students have the flexibility to access an exact replica of their textbook from any computer that has Internet service, without plug-ins or special software, via the online version, or to create a library of books on their hard drive via the down-loadable version Access to the CourseSmart ebooks lasts for one year

Features CourseSmart ebooks allow students to highlight, take notes, organize notes, and share the notes with other CourseSmart users Students can also search for terms across all ebooks in their purchased CourseSmart library CourseSmart ebooks can be printed (five pages at a time)

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McGraw-Hill Connect ®

Learn Without Limits

Connect is a teaching and learning platform

that is proven to deliver better results for

students and instructors

Connect empowers students by continually

adapting to deliver precisely what they

need, when they need it, and how they need

it, so your class time is more engaging and

effective.

Mobile

Connect Insight ®

Connect Insight is Connect’s new

one-of-a-kind visual analytics dashboard—now available

for both instructors and students—that

provides at-a-glance information regarding

student performance, which is immediately actionable

By presenting assignment, assessment, and topical

performance results together with a time metric that

is easily visible for aggregate or individual results, Connect

Insight gives the user the ability to take a just-in-time approach

to teaching and learning, which was never before available

Connect Insight presents data that empowers students and

helps instructors improve class performance in a way that is

efficient and effective.

73% of instructors who use

Connect require it; instructor

satisfaction increases by 28%

when Connect is required.

Students can view their results for any

Connect course.

Analytics

Connect’s new, intuitive mobile interface gives students

and instructors flexible and convenient, anytime–anywhere

access to all components of the Connect platform.

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SmartBook ®

Proven to help students improve grades and

study more efficiently, SmartBook contains the

same content within the print book, but actively

tailors that content to the needs of the individual

SmartBook’s adaptive technology provides precise,

personalized instruction on what the student

should do next, guiding the student to master

and remember key concepts, targeting gaps in

knowledge and offering customized feedback,

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organizational behavior

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After studying this chapter, you should be able to:

1-1 Define organizational behavior and organizations, and discuss the importance of this

field of inquiry

1-2 Debate the organizational opportunities and challenges of technological change,

globalization, emerging employment relationships, and workforce diversity

1-3 Discuss the anchors on which organizational behavior knowledge is based

1-4 Compare and contrast the four perspectives of organizational effectiveness

fter completing an international MBA, Megan Kates joined Anheuser-Busch InBev (InBev), the world’s largest brewer, as a brand manager in its Mexican operations Kates, who previously held a marketing job in Miami for French jeweler Cartier, was assigned the premium European import brew, Stella Artois Later, she was handed additional responsibilities throughout Mexico for Michelob Ultra and Budweiser “[InBev] basically handed me a brand and told

me to run with it,” says Kates “It’s a very lean company.”

As one of the world’s most admired organizations, Anheuser-Busch InBev has a performance culture that continually challenges employees to develop their potential The Belgium-based brewer instills an owner-like commitment by giving Megan Kates and other staff deep responsibility and autonomy to run their part of the business “We create restaurant owners, not waiters,” explains an InBev manager

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AB InBev applies high-performance work practices and other organizational behavior strategies to become one of the world’s most successful companies.

© David Hecker/AP Images

PART 1: INTRODUCTION

InBev’s performance culture eschews complacency “We set ourselves stretch targets and are never completely satisfied with our results,” says one of the firm’s 10 guiding principles The company regularly takes people out of their comfort zones by transferring them to new positions with increasing

responsibilities and challenges “I never get to that stage of being bored and looking elsewhere,” says a British InBev manager who currently works at the brewer’s offices in Belgium

As Megan Kates observes, InBev is a very lean company Its industry-leading profit margins result from a relentless drive for operational efficiency through practices that continually drive out waste It applies zero-based budgeting, so costs must be justified annually InBev is also famously frugal The brewer avoids many executive perks (no cars or golf memberships), allows business class travel only for long-haul flights, and has moderately priced office decor.1 

3

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Welcome to the Field of Organizational Behavior!

High-performance work practices Values-driven organization Motivating jobs tional leadership These are just a few of the organizational behavior topics and practices that have made Anheuser-Busch InBev a successful organization in a highly competitive and dynamic environment In every sector of the economy, organizations need to employ skilled and motivated people who can be creative, work in teams, and maintain a healthy lifestyle They need leaders with foresight and vision, who support innovative work prac-tices, and make decisions that consider the interests of multiple stakeholders In other words, the best companies succeed through the concepts and practices that we discuss in this organizational behavior book

Inspira-Our purpose is to help you understand what goes on in organizations We examine the factors that make companies effective, improve employee well-being, and drive successful collaboration among coworkers We look at organizations from numerous and diverse perspectives, from the deepest foundations of employee thoughts and behavior (personality, self-concept, attitudes, etc.) to the complex interplay between the organization’s structure and culture and its external environment Along this journey, we emphasize why things happen and what you can do to predict and guide organizational events

We begin this chapter by introducing you to the field of organizational behavior and explaining why it is important to your career and to organizations This is followed by an overview of four major societal developments facing organizations: technological change, globalization, emerging employment relationships, and increasing workforce di-versity We then describe four anchors that guide the development of organizational be-havior knowledge The latter part of this chapter describes the “ultimate dependent variable” in organizational behavior by presenting the four main perspectives of organi-zational effectiveness The chapter closes with an integrating model of organizational behavior, which serves as a road map to guide you through the topics in this book

The Field of Organizational Behavior

Organizational behavior (OB) is the study of what people think, feel, and do in and

around organizations It looks at employee behavior, decisions, perceptions, and tional responses It examines how individuals and teams in organizations relate to each other and to their counterparts in other organizations OB also encompasses the study

emo-of how organizations interact with their external environments, particularly in the text of employee behavior and decisions OB researchers systematically study these topics at multiple levels of analysis, namely, the individual, team (including interper-sonal), and organization.2

con-The definition of organizational behavior begs the question: What are organizations?

Organizations are groups of people who work interdependently toward some purpose.3

Notice that organizations are not buildings or government-registered entities In fact, many organizations exist with neither physical walls nor government documentation to confer their legal status Organizations have existed for as long as people have worked together Massive temples dating back to 3500 bc were constructed through the orga-

nized actions of multitudes of people Craftspeople and merchants in ancient Rome formed guilds, complete with elected managers More than 1,000 years ago, Chinese factories were producing 125,000 tons of iron each year.4

One key feature of all organizations throughout tory is that they are collective entities.5 They consist

his-of human beings—typically, but not necessarily,

1-1

organizational behavior (OB)

the study of what people think,

feel, and do in and around

organizations

organizations

groups of people who work interdependently toward some purpose

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employees—who interact with each other in an organized way This organized

rela-tionship requires some minimal level of communication, coordination, and ration to achieve organizational objectives As such, all organizational members have degrees of interdependence; they accomplish goals by sharing materials, infor-mation, or expertise with coworkers

collabo-A second key feature of organizations is that their members have a collective sense of purpose This collective purpose isn’t always well defined or agreed on Most companies have vision and mission statements, but they are sometimes out of date or don’t describe what employees actually try to achieve Still, imagine an organization without a collec-tive sense of purpose It would be an assemblage of people without direction or unifying force So, whether they are producing and marketing a premium beer at AB InBev or selling almost anything on the Internet at Amazon.com, people working in organizations

do have some sense of collective purpose

HISTORICAL FOUNDATIONS OF ORGANIZATIONAL BEHAVIOR

Several events suggest that OB emerged as a distinct field throughout the 1940s.6 During that decade, a few researchers began describing their research as organizational (rather than sociological or psychological) And by the late 1940s, Harvard had changed the name of its MBA human relations course to “Organizational Behavior.”

Although the field of OB is recent, experts in other fields have been studying zations for many centuries The Greek philosopher Plato (400 bc) wrote about the es-sence of leadership, and the Chinese philosopher Confucius (500 bc) extolled the virtues of ethics and leadership Economist Adam Smith (1770s) discussed the benefits

organi-of job specialization and division organi-of labor German sociologist Max Weber (early 1900s) wrote about rational organizations, the work ethic, and charismatic leadership Industrial engineer Frederick Winslow Taylor (1910s) proposed systematic ways to organize work processes and motivate employees through goal setting and rewards.7

Political scientist Mary Parker Follett (1920s) offered new ways of thinking about constructive conflict, team dynamics, power, and leadership Harvard professor Elton Mayo and his colleagues (1930s and 1940s) established the “human relations” school of

Steve Jobs orchestrated many of

the greatest advances in our

digital lifestyle and animation film

over the past few decades

The cofounder of Apple and Pixar

Animation Studios was renowned

for his vision and persistence Yet

Jobs emphasized that great

achievements also require the

power of organizations “A

company is one of humanity’s

most amazing inventions,” Jobs

once explained “It’s totally

abstract Sure, you have to build

something with bricks and mortar

to put the people in, but basically

a company is this abstract

construct we’ve invented, and it’s

incredibly powerful.” 8

© Tony Avelar/Bloomberg/Getty

Images

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management, which pioneered research on employee attitudes, formal team dynamics, informal groups, and supervisor leadership style American executive and Harvard associate Chester Barnard (1930s) wrote insightful views regarding organizational communication, coordination, leadership and authority, organizations as open sys-tems, and team dynamics.9 This brief historical tour indicates that OB has been around for a long time; it just wasn’t organized into a unified discipline until around World War II.

WHY STUDY ORGANIZATIONAL BEHAVIOR?

In all likelihood, you are reading this book as part of a required course in tional behavior Apart from degree or diploma requirements, why should you learn the ideas and practices discussed in this book? After all, who ever heard of a career path leading to a “vice president of OB” or a “chief OB officer”? Our answer to this ques-tion begins with survey findings that students who have been in the workforce for some time typically point to OB as one of their most valuable courses Why? Because

organiza-they have learned through experience that OB does make a difference to one’s career

success.10 There are three main reasons why OB theories and practices are important (see Exhibit 1.1):

Comprehend and Predict Workplace Events Every one of us has an herent drive to make sense of what is going on around us.11 This need is particularly strong in organizations because they are highly complex and ambiguous contexts that have a profound effect on our lives The field of organizational behavior uses scien-tific research to discover systematic relationships, which give us a valuable founda-tion for comprehending organizational life.12 This knowledge satisfies our curiosity about why events occur and reduces our anxiety about circumstances that would otherwise be unexpected and unexplained Furthermore, it helps us predict and

in-• Satisfy curiosity

Reduce anxiety

Predict future events

Comprehend and predict work events

Work well with others

Accomplish personal and org goals

Influence organizational events

Confirm and refine personal theories

Correct false common sense

Adopt more accurate personal theories

Why Study Organizational Behavior?

EXHIBIT 1.1

Importance of Organizational

Behavior

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anticipate future events so we can get along with others, achieve our goals, and mize unnecessary career risks.

mini-Adopt More Accurate Personal Theories A frequent misunderstanding is that OB is common sense Of course, some OB knowledge is very similar to the theories you have developed through personal experience But personal theories are usually not quite as precise as they need to be Perhaps they explain and predict some situations, but not others For example, one study found that when liberal arts students and chief execu-tive officers were asked to choose the preferred organizational structure in various situa-tions, their commonsense answers were typically wrong because they oversimplified well-known theory and evidence on that topic.13 (We discuss organizational structures in Chapter 13.) Throughout this book you’ll also discover that OB research has debunked some ideas that people thought were “common sense.” Overall, we believe the OB knowledge you will gain by reading this book will help you challenge and refine your personal theories, and give you more accurate and complete perspectives of organiza-tional events

Influence Organizational Events Probably the greatest value of OB knowledge

is that it helps us get things done in the workplace by influencing organizational events.14

By definition, organizations are people who work together to accomplish things, so we need a toolkit of knowledge and skills to work successfully with others Studies consis-tently observe that the most important knowledge and skills that employers desire in em-ployees relate to the topics we discuss in this book, such as building teams, motivating coworkers, handling workplace conflicts, making decisions, and changing employee be-havior No matter what career path you choose, you’ll find that OB concepts play an im-portant role in performing your job and working more effectively within organizations

Organizational Behavior Is for Everyone Organizational behavior is cussed by some writers as a topic for managers Effective management does depend

dis-on OB cdis-oncepts and practices, but this book pidis-oneered the broader view that OB is valuable for everyone who works in and around organizations Whether you are a software engineer, customer service representative, foreign exchange analyst, or chief executive officer, you need to understand and apply the many organizational behavior topics that are discussed in this book In fact, OB knowledge is probably more valuable than ever before because employees increasingly need to be proactive, self-motivated, and able to work effectively with coworkers without management inter-vention In the words of one forward-thinking OB writer more than four decades ago: Everyone is a manager.15

OB and the Bottom Line Up to this point, our answer to the question “Why study OB?” has focused on how organizational behavior knowledge benefits you as an indi-vidual However, OB is also vital to the organization’s survival and success.16 For in-stance, the best 100 companies to work for in America (i.e., companies with the highest levels of employee satisfaction) enjoy significantly higher financial performance than other businesses within the same industry Companies with higher levels of employee engagement have higher sales and profitability (see Chapter 5) OB practices are also associated with various indicators of hospital performance, such as lower patient mortal-ity rates and higher patient satisfaction Other studies have consistently found a positive relationship between the quality of leadership and the company’s financial performance

The bottom-line value of organizational behavior is supported by research into the best predictors of investment portfolio performance These investigations suggest that leadership, performance-based rewards, employee development, employee attitudes,

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and other specific OB characteristics are important “positive screens” for selecting companies with the highest and most consistent long-term investment gains.17 Overall, the organizational behavior concepts, theories, and practices presented throughout this book do make a positive difference to you personally, to the organization, and ultimately to society.

Contemporary Developments Facing Organizations

Organizations are experiencing unprecedented change Technological developments, consumer expectations, global competition, and many other factors have substantially altered business strategy and everyday workplace activities The field of organizational behavior plays a vital role in guiding organizations through this continuous turbulence

As we will explain in more detail later in this chapter, organizations are deeply affected

by the external environment Consequently, they need to maintain a good organization–environment fit by anticipating and adjusting to changes in society Over the next few pages, we introduce four major environmental developments facing organizations: tech-nological change, globalization, emerging employment relationships, and increasing workforce diversity

TECHNOLOGICAL CHANGE

Technological change has always been a disruptive force in organizations, as well as in society.18 Waterwheels, cotton gins, steam engines, microprocessors (such as in auto-mated systems and artificial intelligence), and many other innovations dramatically boost productivity, but also usually displace employees and render obsolete entire oc-cupational groups Not even top-level executives are immune to the effects of these transformational innovations Other technologies, such as the telegraph, smartphone, and the Internet, potentially improve productivity but more profoundly alter our rela-

tionships and patterns of behavior with coworkers, clients, and suppli-ers Still other technologies aim to improve health and well-being, such

as the development of better cines and medical equipment, new leisure apparatus, and environmen-tally safer materials

medi-Information technology is one of the most significant forms of tech-nological change in recent times.19 As we discuss in Chapter 9, the introduction of email has altered communication patterns and power dynamics throughout most work-places Social media and other so-cial collaboration technologies are slowly replacing email, and will fur-ther reshape how people associate and coordinate with each other Some OB experts argue that infor-mation technology gives employees

a stronger voice through direct munication with executives and broader distribution of their opin-ions to coworkers and beyond

com-1-2

of 1,000 American employees polled say they would prefer to work at a company that uses internal (enterprise) social media.

workers polled across 32 countries say

that social media tools have somewhat

or greatly increased their productivity.

American adults say they spend between

1 and 6 hours using social media

tools or mobile applications to

help get their job done.

42%

of 9,908 information workers polled across 32 countries say that social media tools have resulted in more workplace collaboration.

Photo: © pictafolio/Getty Images RF

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Information technology has also created challenges, such as tethering people to their jobs for longer hours, reducing their attention spans at work, and increasing techno-stress We discuss these concerns below and in Chapter 4 (workplace stress)

At a macro-level, information technology has reconfigured entire organizations by integrating suppliers and other external entities into the transformation process Eventually, technology may render organizations less of a place where people work and more of a process or network where people collaborate across space and time (see Chapter 13)

GLOBALIZATION

Globalization refers to economic, social, and cultural connectivity with people in other

parts of the world Organizations globalize when they actively participate in other tries and cultures Although businesses have traded goods across borders for centuries, the degree of globalization today is unprecedented because information technology and transportation systems allow a much more intense level of connectivity and interdepen-dence around the planet.21

coun-Globalization offers numerous benefits to organizations in terms of larger markets, lower costs, and greater access to knowledge and innovation At the same time, there is considerable debate about whether globalization benefits developing nations and the ex-tent to which it is responsible for increasing work intensification, reduced job security, and poor work–life balance in developed countries.22

The field of organizational behavior focuses on the effects of globalization on zations and how to lead and work effectively in this emerging reality Throughout this book, we will refer to the effects of globalization on teamwork, diversity, cultural values, organizational structure, leadership, and other themes Globalization has brought more complexity and new ways of working to the workplace It also requires additional knowl-edge and skills that we will discuss in this book, such as emotional intelligence, a global mindset, nonverbal communication, and conflict handling

organi-EMERGING EMPLOYMENT RELATIONSHIPS

Technology, globalization, and several other developments have substantially altered the employment relationship in most countries Before the digital age, most employees would finish work after eight or nine hours and could separate their personal time from their employment Today, they are more likely to be connected to work on a 24/7 sched-ule Globalization increases competitive pressure to work longer and creates a 24-hour schedule because coworkers, suppliers, and clients work in different time zones Infor-mation technology enables employers and others to easily and quickly communicate with employees beyond their traditional workday

Little wonder that one of the most important employment issues over the past decade

has been work–life balance Work–life balance occurs when people are able to

mini-mize conflict between their work and nonwork demands.23 Most employees lack this balance because they spend too many hours each week performing or thinking about their job, whether at the workplace, at home, or on vacation This focus on work leaves too little time to fulfill nonwork needs and obligations Our discussion of work-related stress (Chapter 4) will examine work–life balance issues in more detail

Another employment relationship trend is for ees to work away from the organization’s traditional com-mon work site.24 One form of this remote work

employ-arrangement involves performing most job duties at client sites throughout the day Repair technicians and manage-ment consultants regularly work at client sites, for exam-ple Longer-term remote work occurs where employees

globalization

economic, social, and cultural

connectivity with people in

other parts of the world

work–life balance

the degree to which a person minimizes conflict between work and nonwork demands

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are assigned to partner organizations For instance, biotechnology firm Anteo Diagnostics dispatches its scientists for several weeks or months to partner companies around the world, where they jointly investigate the effectiveness of Anteo’s patented nano glue prod-ucts on the partner firm’s point-of-care technology.

Telecommuting The best-known form of remote work is telecommuting (also

called teleworking) whereby information technology enables employees to work from

home one or more workdays per month rather than commute to the office An estimated

37 percent of U.S workers telecommute, with almost one-third of them working from home at least six days each month The U.S government reports that 23 percent of em-ployees perform some or all of their work at home (but that includes taking work home after attending the office, not just telecommuting).26

Is telecommuting beneficial for employees and organizations? This question ues to be debated because it has advantages, disadvantages, and several contingencies that muddy its effectiveness.27 One advantage is that telecommuters usually experience better work–life balance because they have more time and somewhat more control to juggle work with family obligations For example, a study of 25,000 IBM employees found that female telecommuters with children were able to work 40 hours per week, whereas female employees with children who work solely at the office could manage only 30 hours before feeling work–life balance tension Work–life balance is less likely

contin-to improve when telecommuters lack sufficient workspace and privacy at home and have increased family responsibilities on telecommuting days

Telecommuting is an attractive benefit for younger job applicants, and turnover is usually lower among telecommuting employees Research also indicates that telecom-muters have higher productivity than nontelecommuters, likely because they experience less stress and tend to transfer some former commuting time to work time Telecommut-ing also improves productivity by enabling employees to work at times when the weather

or natural disasters block access to the office

Several companies report that telecommuting has reduced greenhouse gas emissions and office expenses For instance, health insurer Aetna estimates that its telecommuting employees (31 percent of the workforce) annually avoid using two million gallons of gas, thereby reducing carbon dioxide emissions by more than 23,000 metric tons With many

telecommuting

an arrangement whereby,

supported by information

technology, employees work

from home one or more work

days per month rather than

commute to the office

From Commute to Telecommute

in Japan

Yui Nishimura moved closer to her husband’s workplace

when she recently married, but faced a 90-minute

com-mute by train each way to her office in Tokyo

Fortu-nately, Nishimura’s employer, major snack foods

company Calbee, allows the investor relations employee

to telecommute a couple of days each month “I don’t

have to spend time commuting, and I’m now able to

fo-cus more on my work,” says Nishimura Currently, only

4 percent of Japanese employees work from home at

least one day per week The Japanese government

hopes that 10 percent of Japanese employees will be

telecommuting within the next few years 25

global connections 1.1

© Ming Thein/Getty Images

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employees working from home, Aetna has also been able to reduce its real estate and related costs by between 15 and 25 percent.28

Telecommuting also has several disadvantages.29 Telecommuters frequently report more social isolation, including weaker relationships with coworkers They also receive less word-of-mouth information, which may have implications for promotional opportu-nities and workplace relations “When I’m home, I miss out on going to have coffee with people, and that’s when all kinds of information about employment applications, the ministries and the university comes up,” says Marcel Swart, a chemist at a university in Spain.30 Organizations also potentially suffer from lower team cohesion and a weaker organizational culture when most employees work from home for a significant part of their workweek

Telecommuting success depends on several characteristics of the employee, job, and organization.31 Employees who work effectively from home typically have higher self-motivation, self-organization, need for autonomy, and information technology skills Those who telecommute most of the time also fulfill their social needs more from sources outside the workplace Jobs are better suited to telecommuting when the tasks do not require resources at the workplace, the work is performed independently from coworkers, and task performance is measurable Organizations improve tele-commuting success by rewarding and promoting employees based on their perfor-mance rather than their presence in the office (face time) Effective companies also help telecommuters maintain sufficient cohesion with their team and psychological connectedness with the organization This occurs by limiting the number of telecom-muting days, having special meetings or events where all employees assemble at the workplace, and regularly using video communication and other technology that im-proves personal relatedness

SELF-ASSESSMENT 1.1: Are You a Good Telecommuter?

Telecommuting is an increasingly popular workplace relationship, and it potentially offers benefits for both companies and telecommuters However, some people are better suited than others to telecommuting and other forms of remote work You can discover how well you adjust to telecommuting and remote work by locating this self-assessment in Connect

if it is assigned by your instructor

INCREASING WORKFORCE DIVERSITY

Immigrants to the United States and many other countries have much more tural origins than a few decades ago, resulting in a much more diverse workforce in most organizations In addition, globalization has increased the diversity of people employees interact with in partner organizations (suppliers, clients, etc.) located else-where in the world

multicul-When discussing workforce diversity, we usually think about surface-level diversity—the observable demographic and other overt differences among members of

a group, such as their race, ethnicity, gender, age, and physical capabilities.32 As tioned, surface-level diversity in the United States and many other countries has in-creased substantially over the past few decades For instance, people with non-Caucasian

men-or Hispanic men-origin currently represent one-third of the American population Within the next 50 years, an estimated one-quarter of Americans will be Hispanic, 14 percent will

be African American, and 8 percent will be of Asian descent.33

surface-level diversity

the observable demographic

or physiological differences in

people, such as their race,

ethnicity, gender, age, and

physical disabilities

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