OrganizatiOnal
BehaviOr
OrganizatiOnal
BehaviOr
Jean M. Phillips
RutgersUniversity
Stanley M. gully
RutgersUniversity
2e
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ABOUT THE AUTHORS
Jean Phillips
JeanPhillipsisaprofessorintheHumanResourceManagementdepartment intheSchoolofManagementandLaborRelationsatRutgersUniversity.She earnedherPh.D.fromMichiganStateUniversityinorganizationalbehav-iorandhumanresourcemanagement.Shehastaughtclassroomandhybrid classroom/onlinecoursesintopicsincludingorganizationalbehavior,strate-gichumanresourcemanagement,staffing,andteamsandleadershipinthe UnitedStates,Iceland,andSingaporeattheundergraduate,master’s,Ph.D., andexecutivemaster’slevels. Jeanhasauthoredorpresentedmorethaneightypapers,researcharticles, books,andbookchaptersandhascoauthoredoreditedmorethaneighteen books.Shewasamongthetop5percentofpublishedauthorsinJournal ofAp-plied PsychologyandPersonnel Psychologyduringthe1990sandreceivedthe
2004CummingsScholarAwardfromtheOrganizationalBehaviorDivisionof theAcademyofManagement.Herresearchinterestsfocusonrecruitmentand staffing,leadershipandteameffectiveness,andissuesrelatedtolearningorgani-zations.HerresearchhasappearedinAcademy of Management Journal,Journal
of Applied Psychology,Organizational Behavior and Human Decision Processes, Personnel Psychology,Small Group Research,Journal of Business and Psychol-ogy,andInternational Journal of Human Resource Management.Shehasserved
ontheeditorialboardsofJournal of Applied Psychology, Journal of Management,
Personnel Psychology,andthe Journal of Business and Psychology.
Herconsultingworkincludesthecreationandevaluationofstrategicre-cruitmentandstaffingprograms,evaluatingrecruitingsourceeffectiveness, coachingonenhancingleadershipperformanceandworkteameffectiveness, andthedevelopmentandevaluationofemployeesurveyprograms.
Stan Gully
StanGullyisaprofessorintheHumanResourceManagementdepartment intheSchoolofManagementandLaborRelationsatRutgersUniversity.He earnedhisPh.D.fromMichiganStateUniversityinIndustrialandOrgani-zationalPsychology.Hehastaughtcoursesattheundergraduate,master’s, Ph.D.,andexecutivemaster’slevelcoveringcontentsuchasorganizational learningandinnovation,recruitingandstaffing,humanresourcemanage-ment,performancemanagement,traininganddevelopment,dataanalysis, andleadership.Hehastaughtusingtraditionalandhybridtechnologiesin theUnitedStates,Iceland,Singapore,andIndonesia. Stanhasauthoredorpresentedmorethaneightypapers,researcharticles, andbookchaptersonavarietyoftopicsandwasrecognizedin2012asoneof themosthighlycitedmanagementscholarsinthepastthirtyyears.Stanhas
coauthoredoreditedmorethaneighteenbooks.HisworkhasappearedinRe-search in Personnel and Human Resources Management, Journal of Applied Psychology, Organizational Behavior and Human Decision Processes, Journal of Organizational Behavior, Organizational Research Methods,and Advances in Interdisciplinary Studies of Work Teams,amongotheroutlets.Stanhas
servedontheeditorialboardsofAcademy of Management Journal, Journal
of Management, Journal of Organizational Behavior,andJournal of Applied Psychology.Hehaswonseveralawardsforhisresearch,teaching,andservice, includingRutgers’2010JimCheliusBestTeacherAward.Heisaformerco-editoroftheAcademyofManagementResearchMethodsDivisionNewsletter. StanonceworkedinmanagementatUPS(brownuniformandall!).His consultingworkincludesevaluatingpredictorsofpharmaceuticalsalesperson effectiveness,assessingtheeffectivenessofanemployerbrandinginitiative, andimplementingamultisourcefeedbacksystem.Hehasalsodesignedvari-oustrainingprogramsontopicsincludingleadershipandtheevaluationof recruitingsourceeffectiveness.Hisresearchinterestsincludeemployeewell- ness,strategicrecruiting,leadershipandteameffectiveness,training,andor-ganizationallearning. JeanandStanmarriedaftermeetingingraduateschoolandhavetwo sons,TylerandRyan.
Nomatterwhatyourfieldofstudy,organizationalbehaviorisoneofthemost importantclassesyouwilltakewhenitcomestolaunchingandadvancing yourcareer.Organizationalbehavior(OB)explainshoworganizationswork, whypeoplebehavethewaytheydo,andhowyoucanbemoreeffectivewhen workingaloneorwithothers.Otherclasseswillhelpyoutodevelopthetech-nicalskillsrequiredforsuccessinyourchosencareer.Wewrotethisbookto helpyoutoacquirethe“softskills”thatmakethedifferencebetweenbeingan averageandanexcellentperformerinanyjob.Inotherwords,thisbookwon’t teachyouaccounting,nursing,orothertechnicalinformation,butitwillhelp youtohaveamoresuccessfulcareerasanaccountant,nurse,orwhateverpro-fessionyouchoose.
Why Learn About OB?
Ifyouwanttofindandexcelatajobyoulove,understandinghowyourunique characteristicsfitwithdifferentorganizationsandjobsandunderstanding howtomanageyourselfandotherswillhelpyoudoit.Ifyouareinterested ingettingpromoted,thenunderstandingcommunication,politics,influence, anddecisionmaking,andlearninghowtomotivateandleadindividualsand teamswillbecriticaltoyouradvancement.Understandingwhatpeoplethink andfeel,knowinghowtopersuadeandmotivatethem,andbeingabletore-solveconflictsandforgecooperationareamongthemostimportantskillsof successfulleaders.Evenintoday’sincreasingly“flat”organizations,which giveemployeesmoreresponsibilitiesasmanagementlayersareremoved,OB skillsareessentialtosuccess.Effectivemanagersdistinguishthemselvesby understandingpeople,motivation,andteamdynamics,inadditiontohaving strongtechnicalknowledgeorexpertise. Wealsofeelstronglythatorganizationalbehaviorshouldbeoneofthe mostinterestingandfunclassesyouwilltake.Peoplearefascinating!Un-derstandingwhatmakesdifferentpeopleproductiveandhappywillhelpyou tomanageyourcareerinafulfillingway.Betterunderstandingyourselfand yourstrengthswillenableyoutoidentifytheopportunitiesyouwillbehappi- estpursuingandmostsuccessfulin.Learningaboutyourselfaswellasoth-ersisbothimportantandenjoyable.Weprovideavarietyofself-assessments, skill-buildingactivities,Internetresources,andcompanyexamplestomake thematerialengagingandinterestingtoread. Anothergreatthingaboutlearningorganizationalbehavioristhefact thatitalsoappliestoyourdailylife.Moodsandemotions,goals,communi-cation,diversity,careermanagement,anddecisionmakingarejustsomeof themanyOBtopicsthatarerelevanttobothyourpersonalandprofessional experienceseveryday.Masteringthetopicsinthisbookwillmakeyoumore effectiveinthenon-workareasofyourlifeaswell.
PREFACE
Our Goals
Thefocusofthistextbookisondevelopingyourpersonalandmanagerial skillsby:
• Helpingyouunderstand yourself,understand organizations,andunder-standtheroleofOBin your personal career success
• Cultivatinganunderstandingofandabilitytoapplyknowledgeabout individual and group behavior in organizationsaswellasappreciating how the entire organizational systemoperates
• Enhancingyourunderstandingofhowtoflexibly apply the OB concepts thatareappropriatefordifferentproblemsorsituations
• CreatinganunderstandingofthemodernOBcontext,includingethics, diversity,competitive advantage, technology,andthe global context
Thefieldoforganizationalbehaviorisconstantlychangingasoldtheo-riesaremodified(orevendisproven)andnewonesareproposed.Thisbookis groundedinstate-of-the-artresearchknowledgeandwillhelpyoutounder-standhowtobestutilizewhatweknowaboutOB.Ourintentistogiveyouthe informationyouneedtounderstandwhatisgoingoninorganizationstoday.
Second Edition Updates
Inthiseditionweupdatedmanyofthechapteropeningrealworldchallenges andcasestudiestokeeptheexamplescurrent.Wealsoupdatedthesupport- ingcitationsinallchapters,andupdatedresearchfindingswhereappropri-ate.Statisticsandexamplesinthetextwerealsoupdated.Wealsocreateda chapterindexedlistofIvey,HarvardBusinessSchool,andothercasestudies andactivitiesavailablefromHarvardBusinessSchoolPress,availableinthe instructor’smanual.
Features
Thistextbookcontainsseveralfeaturesdesignedtoreinforcethethemesof thebookandfurtherdevelopyourOBskills.Real World Challenge.
TohelpyourecognizeOB-relevantissuesinorgani-zations,eachchapterbeginswithaReal World Challengethatdescribesareal challengeorproblemfacedbyapersonororganizationthatrelatestothat chapter’scontent.Thechapterthenconcludeswithadescriptionofhowthe companyorindividualaddressedthechallenge.
Global Issues. AGlobal Issuesfeatureineachchapterhighlightstheglobal implicationsofsomeofthechapter’scontent.
Case Study. ACase Study ineachchapterreinforcessomeofeachchapter’s
materialandgivesyoutheopportunitytoapplywhatyoulearninthechapter toarealorganizationalsituation.
Understand Yourself.
Tohelpyoubetterunderstandyourowncharacter-istics,anUnderstand Yourselffeatureineachchaptergivesyouthechanceto assessyourselfonavarietyoftopicsrelevanttoOB.Thisfeaturewillhelpyou
better understand what motivates you, how you view money, your leadership style, your emotional intelligence, and your diversity awareness, among other things.
Improve Your Skills. Each chapter also contains an Improve Your Skills
box to help you become more effective in different areas including dealing with challenging managerial behaviors, interviewing, managing stress, negotiating, and assessing an organization’s culture and political environment.
So What? To help you understand the usefulness of OB topics in your life
now and in the future, we’ve identified So What? moments throughout each chapter. These will show you how OB can make an immediate impact on your personal success and influence your managerial future.
Now What? Videos. Captivating Now What? decision-making videos put
you in the manager’s chair. Four videos are included for each chapter, with the first video presenting a business challenge, and three shorter videos provid-ing “correct” and “incorrect” responses to the challenge. A short synopsis and discussion questions to accompany each video are included at the end of the chapter.
Workplace Videos. Also included with each chapter are Workplace videos
featuring real-world companies to show managerial challenges. Video cases and discussion questions appear at the end of each chapter.
Technology Coverage. Technology has become an integral part of
do-ing business. In addition to showdo-ing how technology can make learndo-ing fun, throughout the book we’ve included coverage of technology’s influences and impacts on today’s workplace. For example, in the motivation chapter, we dis-cuss how technology can help to empower employees, monitor employee pro-ductivity, provide real-time feedback on performance, and enhance positive reinforcement.
Personal and Organizational Competitive Advantage Exercises. Each
chapter also contains an activity designed to develop your personal skills and an activity designed to enrich your understanding of how the chapter topic can create a competitive advantage for an organization. The personal competitive advantage exercise at the end of each chapter is intended to help you develop your personal skills in an area covered by the chapter. Topics include active listening, making a great first impression, motivating others, negotiating a job offer, and understanding your leadership potential.
The organizational competitive advantage exercise at the end of each chapter helps you apply chapter material to the creation of a competitive advantage for organizations. Because organizational behavior affects the en-tire organization, these exercises are intended to focus your attention on the broader impact of organizational behavior. Topics include creating a competi-tive advantage through multiculturalism, influencing ethical decisions, moti-vating a sales staff, and short case studies.
Summary and Discussion Questions. We also provide chapter
summa-ries and discussion questions at the end of each chapter. Each chapter con-cludes with a variety of exercises that will help to further develop your OB skills and to enable a better understanding of how OB can enhance both your personal success and the organization’s competitive advantage.
For All Career Stages
Wewrotethisbooktohelpyoufindandexcelatajobyoulike,nomatterwhat careerstageyou’rein.Wewanttohelpyougetabetterjobandabetterca-reer,andtobeabettermanager.Theconceptsdiscussedandskillsdeveloped throughoutthisbookapplytopeopleatalljoblevels.We’veevenincludeda specialchaptercalled“ManagingYourCareer”thatwehopewillhelpyoude-velopyourowncareerpath. We’dlovetohearyourfeedbackandideasforfurtherimprovingthebook andassociatedmaterials.E-mailusanytimeat[email protected].We hopeyouenjoythebook!Student Learning Tools
CourseMate. Nowyoucanmakethemostofyourstudytimebyaccessing everythingyouneedtosucceedinone,convenientonlinesite.Readyourtext onlinewithacompletee-book,takenotes,reviewflashcards,watchvideos,and takepracticequizzes—allconvenientlyonlinewithCourseMate.Thiswealth ofstudyresourceswillenhancethelearningexperience,providingthetools youneedtomasterOBconceptsandsucceedinyourOBcourse. CengageNOW. CengageNOWisaneasy-to-useonlineresourcethathelps youstudyinLESSTIMEtogetthegradeyouwantNOW.APersonalized Studydiagnostictoolassistsyouinaccessingareaswhereyouneedtofocus study.Built-intechnologytoolshelpyoumasterconceptsaswellasprepare forexamsanddailyclass.Instructor Teaching Tools
WeofferthetoolsyouneedtosuccessfullyteachyourOBcourse—inpersonor online.Allancillarymaterialisbrandnewtofitthistext,andeverythinghas beencheckedandrecheckedforqualityandaccuracy.Inaddition,textauthors JeanPhillipsandStanGullyhavebeeninstrumentalindesigningtheancil-larypackageandvettingcontenttoensurethehighestquality.
Video DVD Package. TheengagingDVDpackageincludesthreesetsof
videos.
Now What?decision-makingvideosareacaptivatingfour-videosetthat accompanieseachtextchapter.Thefirstvideopresentsabusinesschal-lenge,whilethreeshortervideosprovide“correct”and“incorrect”responses totheOBchallenge.Thesevideoswerewrittenanddesignedbythetext authors. Workplace videosprofilereal-worldcompaniestoshowchallengesman- agersfaceintheworkplace.FeaturedcompaniesincludeEvo,NumiOr-ganicTea,andFlight001,amongothers.
Chapter Indexed Case Studies. Theinstructor’smanualnowincludesa
chapterindexedlistofcasestudiesandadditionalactivitiesfromHarvard BusinessSchool,Ivey,andothersavailableontheHarvardBusinessSchool website.
Write Experience.
CengageLearning’sWriteExperienceallowsyoutoas-sesswrittencommunicationskillswithoutaddingtoyourworkload!Write Experienceutilizesartificialintelligencetoscorestudentwritinginstantly
andaccurately,whilealsoprovidingstudentswithdetailedrevisiongoalsand feedbackontheirwritingtohelpthemimprovewrittencommunicationand criticalthinkingskills.WriteExperienceisthefirstproductdesignedandcre- atedspecificallyforthehighereducationmarketthroughanexclusiveagree-mentwithMcCannAssociates,andpoweredbye-WriteIntelliMetricWithin™. IntelliMetricisthegoldstandardforautomatedscoringofwritingandisused toscoretheGraduateManagementAdmissionsTest®(GMAT®)analytical
writingassignment.
The Phillips/Gully YouTube Channel. Theauthorshavepainstakingly
collectedalargenumberofengaginginformationalvideosthatcanbeusedto supplementandreinforcestudentknowledge.Severalactivitiesforeachchap- terthatarelinkedtotheseYouTubevideosarealsoavailableontheinstruc-tors’companionwebsiteforuseinbothonlineandface-to-facecourses.You canaccessthesevideosathttp://www.youtube.com/user/phillipsgullyob/videos.
Instructor’s Resource CD-ROM.
Findallofthehelpful,time-savingteach- ingresourcesyouneedtocreateadynamic,interactiveOBcourseinthisall-in-oneInstructor’sResourceCD.Everythingyouneedtoplan,teach,grade, andeffectivelyassessstudentunderstandingandprogressisatyourfinger-tips.TheInstructor’sResourceCDincludesarobustInstructor’s Manualwith MediaGuide,verifiedTestBank,easy-to-useExamView®software,andtwo setsofPowerPoint®presentationslides—basicandpremium. CourseMate. InterestedinasimplewaytocomplementOrganizational Behaviorandyourcoursecontentwithstudyandpracticematerials?Cengage’s ManagementCourseMatebringsconceptstolifewithinteractivelearning, study,andexampreparationtoolsthatsupporttheprintedtext.Watchstu- dentcomprehensionsoarwithflashcardsandengaginggames,audiosum-maries,self-assessments,streamingvideos,andmoreinthistextbook-specific website.Acompletee-bookprovidesyouwiththechoiceofanentireonline learningexperience.ManagementCourseMategoesbeyondthebooktode-liverwhatyouneed! CengageNOW. Thisrobust,onlinecoursemanagementsystemgivesyou morecontrolinlesstimeanddeliversbetterstudentoutcomes—NOW.Cen- gageNOWincludesteachingandlearningresourcesorganizedaroundlectur-ing,creatingassignments,grading,quizzing,andtrackingstudentprogress andperformance.Flexibleassignments,automaticgrading,andagradebook optionprovidemorecontrolwhilesavingyouvaluabletime.APersonalized Studydiagnostictoolempowersstudentstomasterconcepts,prepareforex-ams,andbecomemoreinvolvedinclass.
Instructor’s Manual with Media Guide. TherobustInstructor’s Manual toaccompanythetextincludestheseresources: • ChapterOverview • LearningObjectives • KeyTerms • OpeningRealWorldChallenge • ChapterOutlinewith: • In-depthexplanationofchapterconcepts • SoWhat?moments
• ExpandedcoverageofGlobal Issues, Improve Your Skills, Understand
• PowerPointreferencesthattietheInstructor’s Manualtothepremium andbasicPowerPointpresentations • Blanklinesforinstructornotes • Answerstoend-of-chapterDiscussionQuestionsandExercises • ExtraExercises AlsoincludedintheInstructor’s Manualisacompleteguidecovering howtoincorporatemediaandtechnologyintoyourclassroom,includingNow
What? and Workplace videos.
TextauthorsJeanPhillipsandStanGullyreviewedallInstructor’s
Man-ualchapters,andchaptershavealsobeenproofreadtoensureaccuracyand
completeness.TheInstructor’s ManualwithMediaGuideisavailableonthe Instructor’sResourceCD-ROMandonthetextsupportwebsite.
PowerPoint Presentation Files. TwoPowerPointpresentationfileshave
beenpreparedforeachtextchapter.ThePremiumPowerPointpresentation includesalllearningobjectives,textfiguresandtables,photos,So What? fea-tures,end-of-chapterdiscussionquestionsandexercises,androbustcoverage ofkeychaptertopics.TheBasicPowerPointpresentationisasimplerversion, withabitlessincluded,forinstructorswholiketodeveloptheirownPower-Pointprograms. BothPremiumandBasicPowerPointpresentationsincludelecture notesintheNotessectionofeachslidetoprovideextratipsfortheinstruc-tor.AllslideshavebeenreviewedbytextauthorsJeanPhillipsandStan Gully,andallhavebeenproofreadforaccuracy.ThePowerPointpresenta-tionsareavailableontheInstructor’sResourceCD-ROMandonthetext supportwebsite.
Test Bank. TheTestBankcontainsmorethan2,500questions,including
multiple-choice,true/false,shortanswer,andessay.Eachquestionisbrand-newforthisbrand-newtextbook,andeachhasbeencarefullyverifiedfor accuracybyHoytHayes,ColumbiaCollege.QuestionsaretaggedtoAACSB guidelines,aswellasBloom’sTaxonomy.Levelofdifficulty,textpagerefer-ence,andchaptertopicinformationisincludedforeachquestion.Textauthors JeanPhillipsandStanGullyhavereviewedeachTestBankchapter.TheTest BankisavailableontheInstructor’sResourceCD-ROMandonthetextsup-portwebsite. ExamView. ThissupplementcontainsallofthequestionsintheTestBank. Theprogramiseasy-to-usetestcreationsoftwarecompatiblewithMicrosoft WindowsandMacintosh.Instructorscanaddoreditquestions,instructions, andanswersandselectquestions(randomlyornumerically)bypreviewing themonthescreen.Instructorscanalsocreateandadministerquizzeson-line,whetherovertheInternet,alocalareanetwork(LAN),orawidearea network(WAN).ExamViewisavailableontheInstructor’sResourceCD-ROMinWindowsformat.Macintoshfilesareavailableuponrequest.Please contactyourCengagesalesrepresentativetorequestaMacintoshExam-ViewCD.
Instructor’s Companion Website. Accessimportantteachingresources
onthiscompanionwebsite.Foryourconvenience,youcandownloadelectronic versionsoftheinstructorsupplementsatthepassword-protectedsectionof thesite,includingtheInstructor’s ManualwithMediaGuide,TestBank,and PowerPointpresentations.
Toaccesstheseadditionalcoursematerialsandcompanionresources, pleasevisitwww.cengagebrain.com.AttheCengageBrain.comhomepage, searchfortheISBNofyourtitle(fromthebackcoverofyourbook)usingthe searchboxatthetopofthepage.Thiswilltakeyoutotheproductpagewhere freecompanionresourcescanbefound.
Althoughonlyournamesappearonthecoverofthisbook,weareasmall partofateamofmanytalentedpeopleresponsibleformakingithappen.We greatlyappreciatethemanycoordinative,organizational,andmotivational talentsofdevelopmentaleditorErinGuendelsberger.Shedidanexcellentjob managingtheprocessofmakingthisbookandwasatruepleasuretowork with.DevelopmentaleditorJoanneDauksewiczalsokepttheprojectmoving andwasterrificatmanagingthemanydetailsoftheproject.Executiveeditor ScottPersonandmarketingmanagersClintKernenandJonMonahanwere alsoinstrumentalinhelpingtodevelopthebook.Theyreallyhelpedustoset the“vision”forthisproject.WeappreciatesenioracquisitionseditorMichele Rhoadesforbeingwillingtotakeonthisproject.Shewasalsoterrificinhelp-ingusdevelopourideas.Wearealsogratefulforthecontinuingsupportof editor-in-chiefMelissaAcunawhokepttheprojectontrack. SeniorartdirectorTippyMcIntoshdidawonderfuljobdevelopinganen-gaginglayoutanddesignforthebook.MediaeditorRobEllingtonwasgreat atidentifyingandincorporatingthemostcutting-edgetechnology.Theentire presentationofthetextandothermaterialsisaresultoftheirtalentsincre-atinganengagingexperiencefrombeginningtoend. SenioreditorialassistantRuthBelangerdidagreatjobkeepingusor-ganizedandmeetingdeadlines.Wealsoappreciatethetalentsandefforts ofcontentprojectmanagerJanaLewis,directorofdevelopmentJohnAbner, marketingcoordinatorJuliaTucker,andseniormarketingcommunications managerJimOverly.Wecouldnothavecompletedthisprojectwithouttheir help. WewouldalsoliketothankLindaIrelandfordoingagreatjobcopyedit-ingthebookandRaquelSousaandJoshBrownfortrackingdownanamazing numberofinterestingphotosforthebook.PrintbuyerAretheaThomasdid aterrificjobcoordinatingthemanufacturingprocess.Wewanttorecognize MarthaHallforsecuringrelevanttextpermissionsandJohnHillforsecuring relevantphotopermissionsthatallowyoutoseethesematerials. WealsowanttothanktheRutgers’iTVstudioteamforhelpingtodevelop andmakethevideos.Wethankthecastandcrewforhelpingustocreateen-gagingandinterestingvideosthatbringthebookconceptstolife:
ACkNOwLEdgMENTS
Cast AaronMcDanielasAlex KylaV.GarciaasAmy SarahSirotaasAllison RowanMeyerasRyan AmandaBrookeLernerasBillie JoannaHartshorneasMary ArielleUppaluriasKaren AidanKinneyasJoe JohnKellerasJohn Crew Producer-HébertPeck,Jr. Director–J.AllenSuddeth AssistantDirector-JohnKeller LightingDirector-PeteTroost Audio-MarkAndersen ChiefEngineer-AlexFahan TechnicalDirector-TomSanitate CameraOperator-GregBryant CameraOperator-TimStollery CameraOperator-SteveBarcy Grip-JonCeliberti ProductionCoordinator-Deb Andriano MakeUp-MaddySchlesinger FloorManager-MindyHoffman AdministrativeAssistant-Diane Thorn ProductionAssistant-NatalieFlynn ProductionAssistant-Patricia Montero Editor-PeteTroost Wehadalotoffunworkingonthisbook,andappreciatetheopportunity tohavebeenapartofsuchahighperformingteam. Wealsowanttoacknowledgethehighqualityfeedbackprovidedfromthe followingpeople.Theircommentsandsuggestionswereinvaluableinimprov-inganddevelopingthisbook. H.LonAddams
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Personal Acknowledgment
Alongwiththisbook,weareco-authorsofHuman Resource Management,1st edition,Strategic Staffing,2ndedition,andafive-bookseriesentitledStaffing Strategically.WespendmostofourfreetimehavingfunwithourboysRyan andTyler,cooking,gardening,exploring,andspoilingourdog(Murphy)and cat(Mooch).Wewishtothankourfamilyfortheirpatienceandsupportwhile wewerewritingthisbook.Theykeptusgrounded,happy,andsanethrough-outtheentireproject.
About the Authors v Dedication vii Preface viii Supplemental Resources xii Acknowledgments xvi Brief Contents xix Contents xxi
Part 1
The Organizational Behavior Context
1
Chapter 1 What Is Organizational Behavior? 2
Chapter 2 Diversity 38
Part 2
Individual Effectiveness
73
Chapter 3 Individual Differences I: Demographics, Personality, and Intelligence 74 Chapter 4 Individual Differences II: Self-Concept, Learning Styles, and Types of Fit 108 Chapter 5 Attitudes, Values, Moods, and Emotions 134 Chapter 6 Social Perception, Attributions, and Perceived Fairness 172 Chapter 7 Motivating Behavior 206
Part 3
Social Interactions
247
Chapter 8 Communicating 248
Chapter 9 Making Decisions 288
Chapter 10 Power, Influence, and Politics 326
Chapter 11 Managing Conflict and Negotiating 356
Part 4
Groups, Teams, and Leadership
387
Chapter 12 Group Behavior and Effective Teams 388
Chapter 13 Leading 422
Part 5
Organizational Design, Organizational
Change, and Career Management
459
Chapter 14 Organizational Structure and Design 460 Chapter 15 Organizational Culture and Organizational Change 490 Chapter 16 Managing Your Career 520 Glossary 549 Name/Company Index 561 Subject Index 565
CONTENTS
About the Authors v Dedication vii Preface viii Supplemental Resources xii Acknowledgments xvi Brief Contents xix Contents xxi Part 1The Organizational Behavior Context Chapter 1
What Is Organizational Behavior? 2
Why Is ob Important? 6 Gaining a Competitive Advantage through ob 7 Types of business Strategies 8 Changing business Strategy 11 Where Does ob Come From? 12 Current ob Issues 14
Globalization 14
Global Issues Managing across Cultures 15 Improve Your Skills Global Mindset 16
Technology 17
Ethics 17
Social Responsibility 20
Case Study The J.M. Smucker Company 21
Understand Yourself How Important Are
Ethics and Social Responsibility to You? 22 How Do We Know What We Know? 24
Intuition 24
The Scientific Method 24
organization of the book 28 Summary and Application 29
Takeaway Points 30 Discussion Questions 31 Exercises 31 Video Cases 34 Chapter 2 Diversity 38 What Is Diversity? 40 Types of Diversity 40 business Case for Diversity 42 Performance benefits 42 Diversity as a Source of Competitive
Advantage 43
Legal Issues 44
Diversity Trends 44 Potential Downside of Diversity 46 How Does Diversity Influence Individual and
organizational outcomes? 48 barriers to Inclusion 50 The “Like Me” bias 50
Stereotypes 51
Prejudice 51
Perceived Threat of Loss 51
Ethnocentrism 52
Unequal Access to organizational Networks 52 Managing Diversity 53
Tools 53
Assessment 55
Understand Yourself Diversity
Awareness Self-Assessment 55 The Role of Societal Culture 56
Case Study Diversity at Johnson & Johnson 57
The GLobE Project 59 Cultural Competence 60 Improve Your Skills Understanding
Your Culture 61
Global Issues Cultural Etiquette Quiz 62 Summary and Application 62
Takeaway Points 64 Discussion Questions 65 Exercises 65 Video Cases 66 Part 2 Individual Effectiveness Chapter 3
Individual Differences I: Demographics,
Personality, and Intelligence 74
Demographic Characteristics 76 Race, Nationality, and Ethnicity 76
Age 77 Gender 78 Underlying Factors 78 Personality 78 Achievement Motivation 79 Fear of Failure 79
Tolerance for Ambiguity 80 Locus of Control 81 Personality Type A and Personality
Type b 82
Understand Yourself Work Locus of Control 83
The “big Five” 84
Machiavellianism 85 The bullying Personality 86 Where Does Personality Come From? 87 Myers-briggs Type Indicator 88 Improve Your Skills Challenging Managerial behaviors and How to Respond 88 Role of the Situation 90
Global Issues How others See Americans 90
Intelligence 91
General Mental Ability 91 Multiple Intelligences 92
Case Study Strengths-based Development 93
Emotional Intelligence 95
Summary and Application 96
Takeaway Points 96
Discussion Questions 98
Exercises 99
Video Cases 101
Chapter 4
Individual Differences II: Self-Concept,
Learning Styles, and Types of Fit 108
Self-Concept 110
Self-Esteem 110
Core Self-Evaluations 110
Self-Efficacy 111
Goal orientation 111
Understand Yourself What Is Your
General Self-Efficacy? 112 Learning Styles 113 Sensory Modalities 113 Learning Style Inventory 114 Learning Style orientations 114
Types of Fit 115
Person-Job Fit 115
Improve Your Skills What Is Your Learning
Style? 116
Person-Group Fit 117 Person-organization Fit 117 Person-Vocation Fit 119 Complementary and Supplementary Fit 120 Psychological Contracts 121 Realistic Job Previews 122
Global Issues Global Differences
in Psychological Contracts 123
Case Study Improving Retention
through RJPs at Hilton 124 Summary and Application 124 Takeaway Points 125 Discussion Questions 126
Exercises 127
Video Cases 129
Chapter 5
Attitudes, Values, Moods, and Emotions 134
Values 136
When Values Conflict 139 How Values Differ around the World 140
Attitudes 140
Where Do Attitudes Come From? 141 Cognitive Dissonance 142 What Attitudes Are the Most
Important for organizations? 143 Emotions and Moods 147
Case Study Rules of Engagement
at SuccessFactors 148
Global Issues Emotional Displays
in Different Cultures 149 Where Do Moods Come From? 150
Affectivity 150
Why Do Emotions Matter? 151
Understand Yourself Positive
and Negative Affectivity 151 Emotional Contagion 152 Emotional Labor 152 Managing Emotions and Moods 154
Stress 154
Functional and Dysfunctional Stress 155
Stress Stages 156
bullying 157
Managing Stress 157 Improve Your Skills Stress Management Tips 159
Job burnout 159
Summary and Application 160 Takeaway Points 160 Discussion Questions 162
Exercises 163
Video Cases 164
Chapter 6
Social Perception, Attributions,
and Perceived Fairness 172
Social Perception 174 Perception Shortcuts 174 First Impressions 176 Improve Your Skills Making a Great First
Impression in a Job Interview 177 How Do We Decide How
to Classify People? 178 Self-Fulfilling Prophecies 179
Attributions 181
Attribution Errors 182 Managerial Implications 183
Understand Yourself
Self-Handicapping Attributions 183
Global Issues How Culture Can Influence
Attributions 185
Perceived Fairness 186 outcomes of Perceived Fairness 186 Types of Fairness Perceptions 187
Trust 193
Case Study Regaining Trust After a Merger 194
Psychological Contract Violations 194 Summary and Application 195 Takeaway Points 197 Discussion Questions 198 Exercises 198 Video Cases 199 Chapter 7 Motivating Behavior 206 What Is Motivation? 208 From Where Does Motivation Come? 209 Individual Characteristics 209 Theory X and Theory Y 210 Characteristics of the Job 211 Characteristics of the Work Environment 211 Internal Motivation Factors 212 Maslow’s Hierarchy of Needs 212 Alderfer’s Existence-Relatedness-Growth
(ERG) Theory 213
Herzberg’s Two-Factor Theory 214 McClelland’s Needs for Achievement,
Affiliation, and Power 215
Understand Yourself What
Motivates You? 216
Global Issues Motivating a Global
Workforce 217
External Motivation Factors 217
Empowerment 217
Job Design 218
Goal Setting and Feedback 221 Improve Your Skills Goal-Setting Worksheet 223 Ethics and Goal Setting 224
Vroom’s Valence, Instrumentality,
and Expectancy (VIE) Theory 225
Fairness 227
Case Study Pride building at Aramark 228
Learning and Reinforcement Theories
of Motivation: The Role of Consequences 228 Reinforcing Performance 229 behavior Modification 230 Rewarding Performance 232 Pay for Performance 232 Skill-based Pay 234 Alternative Rewards 235 Lifelong Learning 236 Summary and Application 236 Takeaway Points 237 Discussion Questions 238 Exercises 239 Video Cases 241 Part 3 Social Interactions Chapter 8 Communication 248
The Communication Process 250 Nonverbal Communication 252 one-Way and Two-Way Communication 253 Task Interdependence 253 barriers to Effective Communication 254
Global Issues Cultural Differences
in Communication 258 Communication Skills 259 Listening Skills 259
Writing Skills 260
Understand Yourself Listening
Self-Assessment 261 Presentation Skills 262
Meeting Skills 263
Communication Media 263
The Internet 263
Improve Your Skills Improve Your
Interview Skills 264 Collaboration Software 266
Intranets 266
oral Communication 269
Media Richness 270
Case Study Communicating Ethics at Cisco 271
organizational Communication 272 Downward Communication 272 Upward Communication 274 Horizontal Communication 274 Diagonal Communication 275 Formal and Informal Communication 275 Social Networking 276 Summary and Application 277 Takeaway Points 279 Discussion Questions 280 Exercises 280 Video Cases 283 Chapter 9 Making Decisions 288 Types of Decisions 290 Programmed versus Non-programmed
Decisions 290
Strategic versus operational Decisions 291 Top-Down versus Decentralized Decisions 292 The Rational Decision-Making Process 292 Define the Problem or opportunity 292 Set Goals and Identify Evaluation Criteria 293 Identify Alternatives 294 Evaluate the Alternatives 294 Choose the best Alternative 298 Implement and Monitor the Decision 299 How Are Decisions Really Made
in organizations? 300
Intuition 301
The Role of Emotions in Decision Making 301 Cultural Differences 302
Understand Yourself Emotion-based
Decision Making 302 Group Decision Making 303 University of Iowa Leadership Styles 303 When Should Groups Participate
in Decision Making? 304 Group Decision-Making Errors 304
Case Study The Role of Groupthink
in the Financial Crisis 306 Groupware and Group Decision
Support Systems 307 Enhancing Group Decision-Making
Effectiveness 308
Creative Decision Making 309 Model of Creativity 309 Enhancing Creativity 310 Making Decisions Ethically 312
Improve Your Skills Creative Decisions
through borrowing Ideas 312 Ethical Standards 313 Ethical Awareness 314 Moral Disengagement 314
Global Issues Culture and Nationality
Influences on Ethical Awareness 315 Summary and Application 316 Takeaway Points 316 Discussion Questions 318
Exercises 318
Video Cases 320
Chapter 10
Power, Influence, and Politics 326
Power 328
Position Power 329
Personal Power 330
When Is Each Type of Power
Appropriate? 332
Acquiring and Using Power 332
Empowerment 334
How Subunits obtain Power 335
Influence 336
Influence Tactics 336
Case Study Influencing Decisions 338
Role of National Culture in Influence
Effectiveness 338
Persuasion Skills 338
Global Issues Effectiveness of Different Influence Tactics Depends on
National Culture 339 Upward Influence 339
Understand Yourself Upward
Influence Scale 341 organizational Politics 342 Causes of Political behavior 343 Improve Your Skills Recognizing Politics 345 Managing organizational Politics 345 Impression Management 346 Summary and Application 347 Takeaway Points 347 Discussion Questions 349
Exercises 349
Video Cases 350
Chapter 11
Managing Conflict and Negotiating 356
Conflict 358
What Causes Conflict? 359 How Does Conflict Escalate? 362 De-Escalating Conflict 364 Role of Emotion in Conflict 365 Interpersonal Conflict Management
Strategies 366
Understand Yourself Your Preferred
Conflict Management Style 368
Global Issues Conflict Management
Differences across Cultures 368 The Conflict Process 369 Conflict Management Skills 370 Creating Constructive Conflict 371
Negotiation 372
Negotiating Skills 372 Cultural Issues in Negotiations 374 Improve Your Skills Improving Your
Negotiation Skills 375 Alternative Dispute Resolution 375
Case Study ombudsman to the Rescue 376
Summary and Application 377 Takeaway Points 378 Discussion Questions 378
Exercises 379
Video Cases 381
Part 4
Groups, Teams, and Leadership Chapter 12
Group Behavior and Effective Teams 388
Groups and Teams 390
Types of Teams 391
How Groups become Teams 393 Enhancing Team Effectiveness 395 Creating Effective Teams 397
Understand Yourself Are You Emotionally
Intelligent? 401
Virtual Teams 403
Improve Your Skills Diagnosing Team
Problems 403
building Effective Teams 407 Teamwork Competencies 407 Ethical behavior in Teams 408 Diversity in Teams 408 Types of Team Diversity 409
Case Study Teamwork at IDEo 409
Multicultural Team Challenges 410
Global Issues Increasing the Effectiveness
of Multicultural Teams 411 Summary and Application 411 Takeaway Points 412 Discussion Questions 413 Exercises 414 Video Cases 415 Chapter 13 Leading 422 What Is Leadership? 424 Is Leadership Different from Management? 425 Effective Leadership 426 Do Leaders Share Certain Characteristics? 427
Are Certain Traits or Skills Associated
with Leadership? 427 Is Gender Important to Leadership? 429 What Do Leaders Do? 430
ohio State and University of Michigan
Studies 430
blake and Mouton’s Managerial Grid 431 Transformational and Transactional
Leadership 432
Charismatic Leadership 433 Level 5 Leadership 434 Ethical Leadership 434 What Influences a Leader’s Effectiveness? 434 Fiedler’s Leader Match Model 435 Hersey’s Situational Leadership Model 436
Understand Yourself Least Preferred
Coworker Scale 437
Case Study Leading a Police Force
Transformation 439
Leader-Member Exchange Theory 441 Substitutes for Leadership 442
Followership 443
Leadership Effectiveness in Different Cultures 443
How Does Technology Influence the
Practice of Leadership? 444
E-Leadership 444
Global Issues Effect of Culture on
Perceptions of Leaders’ Attributes 445 How Can Technology Help New Leaders? 446 Improve Your Skills Netiquette Tips
for Managers 446
Summary and Application 447 Takeaway Points 449 Discussion Questions 450
Exercises 450
Video Cases 452
Part 5
Organizational Design, Organizational Change, and Career Management Chapter 14
Organizational Structure and Design 460
organizational Structure 462 Characteristics of organizational
Structure 463
Improve Your Skills Delegation Skills 467 Mechanistic and organic Structures 467
Understand Yourself What Is Your
Preferred Type of organizational Structure? 469 What Influences organizational Structure? 469 Types of organizational Structures 471 Functional Structure 472
Global Issues Multinational
organizational Structures 473 Divisional Structure 473 Matrix Structure 474 Team-based Structure 475 Lattice Structure 475 Network organization 475
Case Study The Morning Star’s
Lattice Structure 476 Virtual organizations 477 Integrating Employees 478 Communities of Practice 478
Effects of Restructuring on Performance 480 Summary and Application 480 Takeaway Points 480 Discussion Questions 482
Exercises 482
Video Cases 485
Chapter 15
Organizational Culture and
Organizational Change 490
What Is organizational Culture
and Where Does It Come From? 492 Does Culture Matter? 493 How Leaders Create and Maintain
Culture 496
Cultures of Conflict and Cultures
of Inclusion 498
Cultures of Conflict 498 Cultures of Inclusion 499
Global Issues Cross-Cultural Influences
on Conflict Cultures 499
Case Study building a Culture
for Inclusion at Whirlpool 500 Improve Your Skills Assessing Culture 501 Effects of Technology on Culture 502
Using Intranets to build
and Maintain Culture 502 building and Maintaining Culture
with Remote Employees 503 organizational Change 503 Forces Creating a Need for Change 503 Lewin’s Model of organizational Change 504 Kotter’s Change Phases 505 Appreciative Inquiry 506 Reactions to Change 506 barriers to Change 507
Understand Yourself What Is Your
Tolerance for Ambiguity? 508 overcoming Resistance to Change 509 organizational Learning 511 Summary and Application 512
Takeaway Points 512 Discussion Questions 514
Exercises 514
Video Cases 515
Chapter 16
Managing Your Career 520
How Do You Define Career Success? 522
Understand Yourself How Do You
View Money? 523
Career Planning 524
Global Issues Differing Values for
Quality of Life versus Career Success 524
Choose Wisely 526
Career Development 526 Getting the Job You Really Want 526 Succeeding on the Job 528
Socialization 528 Mentoring 530 Proactivity 532 Social Styles 532 Social Networks 533 Continuous Learning 535 Global Perspective 536 Work-Life balance 536 Improve Your Skills Global Perspective 537
Case Study Flexibility at KPMG 538
Summary and Application 539 Takeaway Points 539 Discussion Questions 541 Exercises 541 Video Cases 543 Glossary 549 Name/Company Index 561 Subject Index 565
abstract/www
.shutterstock.com
PART 1
The Organizational
Behavior Context
Chapter 1
What Is Organizational
Behavior? 02
What Is Organizational
Behavior?
1
CHAPTER
abstract/www .shutterstock.comBecton, Dickinson, and Co. pursues its corporate purpose of “helping all people lead healthy lives” through its research and its attention to
corporate social responsibility . © Jerry Mc crea/St ar Ledger/ corbi S
Real World Challenge: Corporate Social
Responsibility at Becton, Dickinson, and Co. WHY IS OB IMPORTANT?
GAINING A COMPETITIVE ADVANTAGE THROUGH OB
Types of Business Strategies Changing Business Strategy WHERE DOES OB COME FROM? CURRENT OB ISSUES
Globalization
Global Issues: Managing across Cultures
Improve Your Skills: Global Mindset
Technology Ethics
Social Responsibility
Case Study: The J.M. Smucker Company
Understand Yourself: The Perceived
Importance of Ethics and Social Responsibility
HOW DO WE KNOW WHAT WE KNOW? Intuition
The Scientific Method ORGANIZATION OF THE BOOK SUMMARY AND APPLICATION
Real World Response: Corporate Social
Responsibility at Becton, Dickinson, and Co.
L E A R N I N G O b j E C T I v E S
What is “organizational behavior”? How can OB make you a more effective employee and manager?
How can OB improve a firm’s performance?
Why do OB concepts need to be applied flexibly to match a company’s diverse employee needs?
What role does OB play in organizational ethics?
From where does our knowledge about OB come?
Why is the “scientific process” relevant to OB? 1 2 3 4 5 6 7
REAL WORLD CHALLENGE
Corporate SoCial
reSponSibility at beCton,
DiCkinSon, anD Co.
As a large global healthcare company, Becton, Dickinson, and Co. has the potential to influence the health and life of many people around the world. BD is focused on improving drug delivery, enhancing the quality and speed of diagnosing infectious diseases and cancers, and advancing research, dis-covery and production of new drugs and vaccines. 1
BD CEO Edward Ludwig believes that corporations have a fundamental and long-term obligation to be socially respon-sible. BD is committed to its corporate purpose of “helping all people live healthy lives.” BD wants to become “the organi-zation best known for eliminating unnecessary suffering and death from disease and, in so doing, become one of the best performing companies in the world.”2
Imagine that Ludwig learns that you are taking a course on organizational behavior and asks for your advice on how Bec-ton Dickinson can increase its corporate social responsibility. After studying this chapter, you should have some good ideas.
Our goal in writing this book is to help you get a better job and enjoy a better career, and to be a better manager. As the title suggests, we want to help you better understand yourself, understand organizations, and understand the role of organizational behavior in your personal career success. Organizational behavior (OB) is the cornerstone of success for everyone in organizations. Even the most skilled accountant, researcher, marketer, engineer, or anything else will be ineffective as an employee and as a manager without good interper-sonal and communication skills and a solid understanding of managing and motivating individuals and teams.
The field of organizational behavior is about understanding how people and groups in organizations behave, react, and interpret events. It also de-scribes the role of organizational systems, structures, and processes in shap-ing behavior, and explains how organizations really work. Drawshap-ing from fields including management, anthropology, sociology, information technology, eth-ics, econometh-ics, and psychology, OB provides a foundation for understanding the “soft skills” that enable the effective management of people in organiza-tions. Because it explains how organizations work from individual motivation to team dynamics to organizational structure, knowing about OB is essential to being effective at all organizational levels.
Learning about yourself and constantly developing your skills is important to succeeding in any career. An organization is a group of people with formally assigned roles working together to achieve common goals. Managers are orga-nizational members who are responsible for the attainment of orgaorga-nizational goals by planning, organizing, leading, and controlling the efforts of others in the organization.3 Breaking these four managerial functions down further:
• Planning. Planning involves setting goals, establishing a strategy to
pur-sue those goals, and forecasting future threats and opportunities that might influence the company’s needs and strategies.
• Organizing. Organizing involves designing the organization’s or
work-group’s structure, identifying what tasks need to be done, hiring the right people, delegating and assigning each task, establishing a chain of com-mand, and creating rules for communication and decision making.
• Leading. Leading involves directing and coordinating the work of others,
influencing and motivating others, maintaining morale, and resolving individual and group conflicts.
• Controlling. Controlling involves monitoring performance to ensure that it
is consistent with quality and quantity standards, and taking appropriate actions to get back on track if necessary.
Imagine this scenario. You decide to start a company to create a new series of iPhone applications. What do you need to do? The first thing you need to do is plan. What is the market like for different types of applications? What niche do you want to pursue? After making decisions and setting goals for your new company, you establish an overall strategy to achieve these goals. Then, you
organize. You identify the tasks that need to be done and hire people with the
skills your company needs to be successful. You assign tasks to the people best able to execute them, and develop and communicate work rules and proce-dures to get the work done. You also create a culture and compensation system to motivate employees to meet organizational goals and standards.
You then need to lead your team by communicating and keeping them focused on their goals. You might also need to coordinate the work of differ-ent employees if one employee cannot do her part of a project until another employee finishes his part. If two employees are not getting along, you may need to influence them to reduce the conflict and keep them productive and engaged. You also need to control the project to ensure that deadlines are be-ing met, and that the work is up to your quality and quantity standards. If
so what?
Because it explains how organiza-tions work, knowing about OB is essential to being effective at all organizational levels.
organizational behavior
Explains and predicts how people and groups interpret events, react, and behave in organizations; describes the role of organizational systems, structures, and processes in shaping behavior
organization
Consists of people with formally assigned roles working together to achieve common goals
managers
Organizational members who are responsible for the attainment of organizational goals by planning, organizing, leading, and controlling the efforts of others in the organization
the team falls behind schedule, you will need to find a way to get it back on track by hiring more help, dividing the work differently, or some other means.
From this example, you can see the importance of many different OB con-cepts in the practice of management. Decision making, communicating, leading, conflict management, influencing, motivating, and designing an effective organi-zational structure are all important to even a small organization like the one in our example. The effects of good management are amazing. Dun & Bradstreet claims that about 90 percent of new businesses fail, usually because of poor man-agement. Think of an organization with which you are familiar, perhaps your own school or current employer, and imagine how it might be different with a skilled versus an unskilled leader. Understanding OB and how and when to apply differ-ent concepts will give you the tools you need to be effective in any managerial role. In addition to helping you better understand yourself, organizational behav-ior can help you understand why people and groups behave the way they do in organizations. Using your knowledge about OB can help you to perform better and to be a more effective manager. Think about it this way: When you shop at a store, eat at a restaurant, or call for customer service, do all employees with whom you interact behave the same way? If you have worked, were there some bosses or coworkers with whom you preferred to work? Have you ever seen or heard about employees doing things to undermine each other or that would com-promise the performance of the business? OB helps to explain and understand why these things happen, and gives you the tools you need to change them.
There is no one best way to manage—effective employees and managers understand that they need to be flexible in adapting to work challenges. This book will give you a variety of skills and tools to use in almost any work situa-tion. After studying this book, you should have good answers to the questions in Table 1-1, and many others.
Having a toolkit of OB skills and flexibly applying them to match the cur-rent situation is essential to managing the variety of situations employees and managers face. No matter what the challenge, there are OB tools that will
Some Questions Organizational behavior Can Help Answer • How can diversity both help and hurt team performance?
• Why are emotions important at work?
• Are some personality characteristics related to higher job performance? • Is there more than one way to “fit” in an organization?
• Is there one best way to lead?
• Is saying, “Do your best!” the best way to motivate high performance? • What are some common decision-making errors, and how can I avoid them? • What is the role of politics at work?
• What steps can I take to effectively manage my career? • What are the positive and negative effects of stress at work? • What is globalization, and how does it affect me?
• What is “organizational culture” and why is it important?
• How can technology leverage what we know about organizational behavior to improve work performance?
• Why do some people behave unethically in organizations? • Why are some teams more effective than others?
Table 1-1
©
help you to succeed. The Understand Yourself feature in each chapter will help you to learn more about some of the aspects of your personality, perceptions, values, needs, and goals that are relevant to management by providing a va-riety of self-assessment tools. The feedback provided with some of the tools will help you to interpret your score and learn how to develop yourself in each area. The Improve Your Skills feature in each chapter will help you to improve some aspect of your OB skills. Investing now in developing your OB skills will prepare you to be a more effective employee and manager, and help you move up faster in any organization. It takes time to understand yourself and to de-velop your OB skills. The sooner you start, the faster you will prepare yourself for succeeding in your career.
In this chapter, we first briefly discuss the importance of OB to your career as well as to a firm’s competitive advantage and strategic execution. We then briefly discuss the history of OB. We also explain and provide an overview of some current issues in organizational behavior, and discuss how we know what we know about OB. We conclude by describing the organization of the rest of this book.
WhY IS OB IMPOrtaNt?
You may still be wondering about the relevance of OB to your current major or career path. You might be thinking, “I don’t know any organizational behav-iorists. Why is this topic important?” We field this question all the time from people unfamiliar with OB. The core of OB is being effective at work. Under-standing how people behave in organizations and why they do what they do is critical to working effectively with and managing others. OB gives everyone the knowledge and tools they need to be effective at any organizational level. OB is an important topic for anyone who works or who will eventually work in an organization, which is the case for most people.
Whenever managers are surveyed ten to fifteen years out of school and asked to identify the most important classes they ever took, OB is usually one of them. This is not because it made them technically better in their area of specialty, but because it made them more effective employees and better managers. As one expert has put it, “It is puzzling that we seek expert advice on our golf game but avoid professional advice on how we can deal with other people.”4 Using your
knowledge of OB can help you to succeed faster in any organization or career. Organizations as a whole also benefit from OB. Imagine the difference be-tween a company with motivated, engaged employees with clear goals aligned with the business strategy and one with unhappy employees, a lot of con-flict, weak leadership, and a lack of direction. Effectively implementing OB principles is what creates effective and successful companies. OB is clearly important to organizations. By appropriately applying OB knowledge about individuals, groups, and the effect of organizational structure on worker be-havior, the conditions can be created that make organizations most effective.
OB also helps companies perform well. A mounting body of evidence shows that an emphasis on the softer side of business positively influences bottom line results. By listening to employees, recognizing their work, building trust, and behaving ethically, managers have boosted such performance measures as operating earnings, return on investment, and stock price.5 In addition to
fi-nancial performance and job satisfaction, OB also influences absenteeism and turnover. Reducing absenteeism and turnover can be worth millions of dollars to organizations through increased productivity and customer service and de-creased staffing costs.
so what
Investing now in developing your OB skills will prepare you to be a more effective employee and man-ager, and help you move up faster in any organization.
so what
effectively implementing OB con-cepts increases organizational performance.
Successful business strategies are grounded in creating and maintaining a sustainable competitive advantage, which exists any time an organization has an edge over rivals in attracting customers and defending itself against competition. The effective management of people is key to the creation of a competitive advantage and business strategy execution. As former General Electric CEO Jack Welch said, “We now know where productivity—real and limitless productivity—comes from. It comes from challenged, empowered, ex-cited, rewarded teams of people.”6 We next discuss how firms can gain a
com-petitive advantage through OB.
GaINING a COMPetItIVe
aDVaNtaGe thrOUGh OB
Not all organizations are able to create a competitive advantage. Michael Treacy and Fred Wiersma have identified many sources of competitive ad-vantage including having the best-made or cheapest product, providing the best customer service, being more convenient to buy from,
having shorter product development times, and having a well-known brand name.7 Because it is an organization’s
people who are responsible for gaining and keeping any
competitive advantage, effective management is critical to business success.8
Warehouse retailer Costco’s strong and loyal customer base, access to a broad range of high-quality products for a low price, and committed employees give it a competitive advantage over smaller and lesser-known retailers. Al-though Costco pays its employees substantially more than its closest competitor, Sam’s Club, it has similar financial
returns on its labor costs due to lower turnover and higher levels of employee productivity.9 This, in turn, results in a higher-quality customer experience.
According to Michael Porter, to have a competitive advantage a company must ultimately be able to give customers superior value for their money (a combination of quality, service, and acceptable price)—either a better prod-uct that is worth a premium price or a good prodprod-uct at a lower price can be a source of competitive advantage.10 Table 1-2 lists some possible sources of
competitive advantage
Anything that gives a firm an edge over rivals in attracting customers and defending itself against competition
“We now know where
productivity—real and
limitless productivity—
comes from. It comes from
challenged, empowered,
excited, rewarded teams
of people.”
—Jack Welch, Former General Electric CEOSources of Competitive Advantage
• Innovation: developing new products, services, and markets and improving current ones
• Distribution: dominating distribution channels to block competition • Speed: excelling at getting your product or service to consumers quickly • Convenience: being the easiest for customers to do business with • First to market: introducing products and services before competitors • Cost: being the lowest-cost provider
• Service: providing the best customer support before, during, or after the sale • Quality: providing the highest-quality product or service
• Branding: developing the most positive image
Table 1-2
©
