People, processes, and technology. These are the three major drivers of business achievement. The best leaders inherently understand that great companies start with great people. This is as true now as it was during the beginning of the industrial revolution, and understanding and staying current on the latest organizational behavior research and best practices paves the way for managerial success.
In this updated edition of Organizational Behavior, theory, new research and real-world case studies are combined in an engaging manner to blend together the critical concepts and skills needed to successfully manage others and build a strong organization across all levels of a company. Featuring an in-depth view of the process and practice of managing individuals, teams, and entire organizations, the text provides a solid foundation for students and future managers.
Table of Contents
About the authors iii
Preface vii
Acknowledgments xv
Opening Case Study: “The Right Thing to Do Is Start with the Crew” The Case of Trader Joe’s xxv
Part 1 The Strategic Lens
1 A Strategic Approach to Organizational Behavior 1
Exploring Behavior in Action: Strategic Use of Human Capital: A Key Element of Success at P&G and The Container Store 1
The Strategic Importance of: Organizational Behavior 3
Basic Elements of Organizational Behavior 3
Importance of Using a Strategic Lens 4
Experiencing Organizational Behavior: Nick Johnson, Susan Williams, and Other Not-Ready-for- Primetime Managers 6
Foundations of a Strategic Approach to Organizational Behavior 7
Definition of an Organization 7
The Role of Human Capital in Creating Competitive Advantage 8
The Nature of Human Capital 8
The Concept of Competitive Advantage 9
Human Capital as a Source of Competitive Advantage 9
Overall Potential for Competitive Advantage 11
Managerial Advice: Leveraging Human Capital with Twitter, Workplace, and Other Social Networking Tools 12
Positive Organizational Behavior 13
High-Involvement Management 14
Key Characteristics of High-Involvement Management 14
Evidence for the Effectiveness of High-Involvement Management 17
Demands on Managers 17
Experiencing Organizational Behavior: Pixar: An Organization of Happy, Innovative People 19
Organization of the Book 20
What This Chapter Adds to Your Knowledge Portfolio 21
Back to the Knowledge Objectives 22
Key Terms 22
Human Resource Management Applications 22
Building Your Human Capital: Career Style Inventory 23
An Organizational Behavior Moment: All in a Day’s Work 26
Team Exercise: McDonald’s: A High-Involvement Organization? 27
Endnotes 28
2 Organizational Diversity 33
Exploring Behavior in Action: Diversity in Silicon Valley: An Example from Twitter 33
The Strategic Importance of: Organizational Diversity 34
Diversity Defined 36
Forces of Change 38
Changing Population Demographics 38
Increase in the Service Economy 40
The Global Economy 40
Requirements for Teamwork 40
Diversity Management and High-Involvement Organizations 41
Individual Outcomes 41
Group Outcomes 42
Organizational Outcomes 42
Societal and Moral Outcomes 43
Experiencing Organizational Behavior: Diversity at the Top 45
Roadblocks to Diversity 46
Prejudice and Discrimination 46
Stereotyping 47
Differences in Social Identity 50
Experiencing Organizational Behavior: Women, Work, and Stereotypes 52
Power Differentials 53
Poor Structural Integration 53
Communication Problems 55
Effectively Creating and Managing Diversity 55
Managerial Advice: Promoting a Positive Diversity Environment 57
The Strategic Lens 58
What This Chapter Adds to Your Knowledge Portfolio 59
Back to the Knowledge Objectives 59
Thinking about Ethics 60
Key Terms 60
Human Resource Management Applications 60
Building Your Human Capital: What’s Your DQ (Diversity Quotient)? 61
An Organizational Behavior Moment: Project ‘Blow Up’ 62
Team Exercise: What Is It Like to Be Different? 63
Endnotes 64
3 Organizational Behavior in a Global Context 69
Exploring Behavior in Action: McDonald’s Thinks Globally and Acts Locally 69
The Strategic Importance of: Organizational Behavior in a Global Context 71
Globalization and Institutions 71
Globalization 71
Managerial Advice: Multinational Corporations Achieving Globalization 73
Institutions 74
The Globalization Experience for Associates and Managers 75
Internationally Focused Jobs 76
Foreign Job Assignments 78
Experiencing Organizational Behavior: I Am a Triangle: The Difficulties of Repatriation Story 80
Foreign Nationals as Colleagues 82
Opportunities for International Participation 83
Multidomestic Firms 84
Global Firms 84
High-Involvement Management in the International Dimensions of National Culture 86
Experiencing Organizational Behavior: Managing Diverse Cultures 88
National Culture and High-Involvement Management 89
Information Sharing 89
Decision Power and Individual Autonomy 90
Decision Power and Self-Managing Teams 90
Ethics in the International Context 91
The Strategic Lens 94
What This Chapter Adds to Your Knowledge Portfolio 94
Back to the Knowledge Objectives 95
Thinking about Ethics 96
Key Terms 96
Human Resource Management Applications 96
Building Your Human Capital: Assessment of Openness for International Work 96
An Organizational Behavior Moment: Managing in a Foreign Land 98
Team Exercise: International Etiquette 98
Endnotes 99
Part 2 Individual Processes
4 Learning and Perception 105
Exploring Behavior in Action: The Strategic Importance of Learning and Perception 105
Fundamental Learning Principles 107
Operant Conditioning and Social Cognitive Theory 108
Contingencies of Reinforcement 108
Managerial Advice: Punishment: Creating a Climate of Fear 110
Schedules of Reinforcement 111
Social Learning and Cognition 113
Other Conditions for Learning 114
Training and Enhancing the Performance of Associates 115
OB Mod 116
Simulations 116
Learning from Failure 118
Experiencing Organizational Behavior: Why Training Doesn’t Always Work! 120
Perception 121
Perceptions of People 122
Self-Perception 126
Attributions of Causality 126
Experiencing Organizational Behavior: Great Bear Wilderness Crash 126
Internal-External Attribution 127
Attributions of Success and Failure 128
Task Perception 129
The Strategic Lens 129
What This Chapter Adds to Your Knowledge Portfolio 130
Back to the Knowledge Objectives 131
Thinking about Ethics 131
Key Terms 131
Human Resource Management Applications 131
Building Your Human Capital: Assessment of Approaches Used to Handle Difficult Learning Situations 132
An Organizational Behavior Moment: It’s Just a Matter of Timing 132
Team Exercise: Best Bet for Training 133
Endnotes 134
5 Personality, Intelligence, Attitudes, and Emotions 138
Exploring Behavior in Action: Personality Testing in the Hiring Process: I Know She’s Smart and Accomplished But Does She Have “Personality”? 138
The Strategic Importance of: Personality, Intelligence, Attitudes, and Emotions 140
Fundamentals of Personality 140
Determinants of Personality Development 141
The Big Five Personality Traits 142
The Big Five and High-Involvement Management 145
The Dark Triad 145
Experiencing Organizational Behavior: Narcissism in the CEO Suite and Oval Office 147
General Cognitive and Motivational Aspects of Personality 148
Some Cautionary and Concluding Remarks 151
Intelligence 151
Experiencing Organizational Behavior: Intelligence and Intelligence Testing in the National Football League 153
Attitudes 153
Attitude Formation 155
Two Important Attitudes in the Workplace 157
Managerial Advice: Job Satisfaction Remains Too Low! 158
Attitude Change 161
Emotions 163
Direct Effects of Emotions on Behavior 164
Emotional Labor 164
Emotional Intelligence 165
The Strategic Lens 167
What This Chapter Adds to Your Knowledge Portfolio 167
Back to the Knowledge Objectives 168
Thinking about Ethics 169
Key Terms 169
Human Resource Management Applications 169
Building Your Human Capital: Big Five Personality Assessment 169
An Organizational Behavior Moment: Whatever Is Necessary! 171
Team Exercise: Experiencing Emotional Labor 171
Endnotes 172
6 Work Motivation 179
Exploring Behavior in Action: Work Motivation at W.L. Gore & Associates 179
The Strategic Importance of: Work Motivation 181
What Is Motivation? 181
Content Theories of Motivation 182
Hierarchy of Needs Theory 182
Theory of Achievement, Affiliation, and Power 184
Two-Factor Theory 186
Managerial Advice: Managers over the Edge 187
Conclusions Regarding Content Theories 188
Process Theories of Motivation 189
Expectancy Theory 189
Equity Theory 191
Goal-Setting Theory 193
Experiencing Organizational Behavior: Making Visible Changes 196
Conclusions Regarding Process Theories 197
Motivating Associates: An Integration of Motivation Theories 198
Find Meaningful Individual Rewards 198
Tie Rewards to Performance 199
Experiencing Organizational Behavior: Tying Rewards to Performance at Microsoft 201
Redesign Jobs 202
Provide Feedback 203
Clarify Expectations and Goals 204
Putting Employee Motivation into Practice through Employee Engagement 204
What Organizations Are Doing to Promote Employee Engagement 205
The Strategic Lens 207
What This Chapter Adds to Your Knowledge Portfolio 208
Back to the Knowledge Objectives 209
Thinking about Ethics 209
Key Terms 209
Human Resource Management Applications 210
Building Your Human Capital: Assessing Your Needs 210
An Organizational Behavior Moment: The Motivation of a Rhodes scholar 211
Team Exercise: Workplace Needs and Gender 212
Endnotes 212
7 Stress and Well-Being 218
Exploring Behavior in Action: Stress Can Be Deadly 218
The Strategic Importance of: Workplace Stress 219
Workplace Stress Defined 220
Two Models of Workplace Stress 222
Demand-Control Model 222
Effort-Reward Imbalance Model 224
Organizational and Work-Related Stressors 225
Role Conflict 225
Managerial Advice: Restoring and Maintaining Work-Life Balance 226
Role Ambiguity 227
Work Overload 227
Occupation 228
Resource Inadequacy 228
Working Conditions 228
Management Style 228
Monitoring 229
Job Insecurity 229
Bullying and Incivility in the Workplace 229
Experiencing Organizational Behavior: Incivility on the Job: The Cost of Being Nasty 230
Individual Influences on Experiencing Stress 231
Type A versus Type B Personality 231
Self-Esteem 232
Hardiness 232
Gender 232
Individual and Organizational Consequences of Stress 233
Individual Consequences 233
Organizational Consequences 235
Managing Workplace Stress 235
Individual Stress Management 236
Organizational Stress Management 237
Experiencing Organizational Behavior: Incentives for Participating in Wellness Programs 238
The Strategic Lens 239
What This Chapter Adds to Your Knowledge Portfolio 240
Back to the Knowledge Objectives 240
Thinking about Ethics 241
Key Terms 241
Human Resource Management Applications 241
Building Your Human Capital: How Well Do You Handle Stress? 241
An Organizational Behavior Moment: Friend or Associate? 242
Team Exercise: Dealing with Stress 243
Endnotes 243
Part 3 Groups, Teams, and Social Processes
8 Leadership 250
Exploring Behavior in Action: Maria Yee and the Green Furniture Revolution 250
The Strategic Importance of: Leadership 252
The Nature of Leadership 252
Trait Theory of Leadership 253
Experiencing Organizational Behavior: The Merchant Prince 255
Behavioral Theories of Leadership 257
University of Michigan Studies 257
The Ohio State University Studies 258
Contingency Theories of Leadership 259
Fiedler’s Contingency Theory of Leadership Effectiveness 259
The Path-Goal Leadership Theory 262
Conclusions Regarding Contingency Theories 263
Transactional and Transformational Leadership 264
Managerial Advice: Ursula Burns, Chairwoman and CEO of Xerox 265
Experiencing Organizational Behavior: Effective Leadership. Authentic Leadership! 269
Additional Topics of Current Relevance 270
Leader-Member Exchange 270
Servant Leadership 271
Gender and Leadership 271
Global Differences in Leadership 273
The Strategic Lens 275
What This Chapter Adds to Your Knowledge Portfolio 275
Back to the Knowledge Objectives 276
Thinking about Ethics 277
Key Terms 277
Human Resource Management Applications 277
Building Your Human Capital: Are You a Transformational Leader? 277
An Organizational Behavior Moment: The Two Presidents 279
Team Exercise: Coping with People Problems 280
Endnotes 281
9 Communication 286
Exploring Behavior in Action: Misunderstandings and Dangerous Runway Incidents 286
The Strategic Importance of: Communication 288
The Communication Process 288
Interpersonal Communication 290
Formal versus Informal Communication 290
Communication Styles 291
Communication Media 292
Communication Technology 293
Nonverbal Communication 294
Managerial Advice: Surfing for Applicants 295
Organizational Communication 297
Communication Networks 297
Direction of Organizational Communication 299
Experiencing Organizational Behavior: Communication at J. Crew: Mickey Drexler 300
Barriers to Effective Communication 302
Individual Barriers 302
Experiencing Organizational Behavior: Adverse Events in the Hospital Operating Room 304
Organizational Barriers 305
Overcoming Communication Barriers 309
Encourage Proactive Individual Actions 309
Conduct Communication Audits 310
Improve Communication Climates 311
The Strategic Lens 311
What This Chapter Adds to Your Knowledge Portfolio 312
Back to the Knowledge Objectives 312
Thinking about Ethics 313
Key Terms 313
Human Resource Management Applications 313
Building Your Human Capital: Presentation Dos and Don’ts 314
An Organizational Behavior Moment:
Going North 315
Team Exercise: Communication Barriers 316
Endnotes 316
10 Decision Making by Individuals and Groups 321
Exploring Behavior in Action: Decision Outcomes: Billy Beane and the Oakland Athletics Baseball Club 321
The Strategic Importance of: Decision Making 322
Fundamentals of Decision Making 323
Basic Steps in Decision Making 323
Optimal versus Satisfactory Decisions 325
Individual Decision Making 326
Experiencing Organizational Behavior: Complex Decisions at Unilever: Large, Diverse and Socially Responsible 326
Decision-Making Styles 327
Managerial Advice: Nurturing Alternative Decision Styles 330
Degree of Acceptable Risk 331
Cognitive Biases 332
Moods and Emotions 333
Group Decision Making 335
Group Decision-Making Pitfalls 335
Group Decision-Making Techniques 338
Who Should Decide? Individual versus Group Decision Making 341
Associate Involvement in Managerial Decisions 341
Experiencing Organizational Behavior: The Vroom- Yetton Model and Military Decisions during the U.S.
