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Essentials of Organizational Behavior Fourteenth Edition Chapter 6 Perception and Individual Decision Making Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. After studying this chapter you should be able to: 1. Explain the factors that influence perception. 2. Describe attribution theory. 3. Explain the link between perception and decision making. 4. Contrast the rational model of decision making with bounded rationality and intuition. 5. Explain how individual differences and organizational constraints affect decision making. 6. Contrast the three ethical decision criteria. 7. Describe the three-stage model of creativity. Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Perception • Perception: A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment • The world as it is perceived is the world that is behaviorally important Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Factors Influencing Perception Perceiver Situation Target Perception Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Person Perception: Attribution Theory • Attribution Theory: Suggests that perceivers try to “attribute” the observed behavior to a type of cause: – Internal – behavior is believed to be under the personal control of the individual – External – the person is forced into the behavior by outside events/causes Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Determinants of Attribution • Distinctiveness – whether an individual displays different behaviors in different situations (the uniqueness of the act) • Consensus – does everyone who faces a similar situation respond in the same way as the individual did? • Consistency – does the person respond the same way over time? Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Attribution Theory Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Attribution Errors and Biases • Fundamental attribution error: – Tendency to underestimate the influence of external factors and overestimate that of internal factors • Self-serving bias: Occurs when individuals overestimate their own (internal) influence on successes and overestimate the external influences on their failures – The basic process of attribution applies across cultures, but Western cultures tend to be more individualist, while Asian cultures are more group oriented Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Shortcuts Used in Judging Others • Selective Perception: A perceptual filtering process based on interests, background, and attitude • Halo Effect: Drawing a general impression based on a single characteristic • Contrast Effects: Our reaction is influenced by others we have recently encountered (the context of the observation) • Stereotyping: Judging someone on the basis of the perception of the group to which they belong Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. The Link Between Perception and Decision Making • Decision making occurs as a reaction to a perceived problem • Perception influences: – Awareness that a problem exists – The interpretation and evaluation of information – Bias of analysis and conclusions Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Rational Decision-Making Model • Rational decision-making model 1. 2. 3. 4. 5. 6. Define the problem Identify the decision criteria Allocate weights to the criteria Develop the alternatives Evaluate the alternatives Select the best alternative • This model is seldom actually used: it’s more of a goal than a practical method Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Bounded Rationality • The limited information-processing capability of human beings makes it impossible to assimilate and understand all the information necessary to optimize – People seek solutions that are satisfactory and sufficient, rather than optimal (they “satisfice”) • Bounded rationality is constructing simplified models that extract the essential features from problems without capturing all their complexity Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Decision Making in Bounded Rationality • Simpler than rational decision making, decision making under bounded rationality is composed of three steps: 1. Limited search for criteria and alternatives – familiar criteria and easily found alternatives 2. Limited review of alternatives – focus on alternatives, similar to those already in effect 3. Satisficing – selecting the first alternative that is “good enough” Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Intuitive Decision Making • Intuitive decision making: A non-conscious process created out of distilled experience – Increases with experience – Can be a powerful complement to rational analysis in decision making Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Common Biases and Errors • Overconfidence Bias: As managers and employees become more knowledgeable about an issue, the less likely they are to display overconfidence • Anchoring Bias: A tendency to fixate on initial information and fail to adequately adjust for subsequent information • Confirmation Bias: Seeking out information that reaffirms our past choices and discounting information that contradicts past judgments • Availability Bias: Basing judgments on readily available information Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. More Biases and Errors • Randomness Error: Our tendency to believe we can predict the outcome of random events • Escalation of Commitment: Staying with a decision even when there is clear evidence that it is wrong • Risk Aversion: Preferring a sure thing over a risky outcome • Hindsight Bias: Believing falsely that we could have predicted the outcome of an event after that outcome is already known Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Individual Differences on Decision Making • Personality • Gender • General mental ability • Cultural differences • Nudging Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Organizational Constraints on Decision Making • Performance evaluations • Reward systems • Formal regulations • System-imposed time constraints • Historical precedents Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Ethical Frameworks for Decision Making • Utilitarianism – Provide the greatest good for the greatest number • Rights – Make decisions consistent with fundamental liberties and privileges • Justice – Impose and enforce rules fairly and impartially so that there is equal distribution of benefits and costs Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Behavioral Ethics • Behavioral ethics – Analyzing how people actually behave when confronted with ethical dilemmas Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Creativity in Organizations • Creativity: The ability to produce novel and useful ideas • Helps people: – – – – See problems others can’t see Better understand the problem Identify all viable alternatives Identify alternatives that aren’t readily apparent Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Three-Stage Model of Creativity Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Creative Behavior Steps: 1. Problem formulation: identify a problem or opportunity that requires a solution as yet unknown 2. Information gathering: possible solutions incubate in an individual’s mind 3. Idea generation: develop possible solutions from relevant information and knowledge 4. Idea evaluation: evaluate potential solutions and identify the best one Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Causes of Creative Behavior • Cause of creative behavior: 1. 2. 3. 4. Intelligence Personality Expertise Ethics • Creative environment – Motivation – Rewards and recognition Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Creative Outcomes • Creative outcomes: ideas or solutions judged to be novel and useful by relevant stakeholders Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Implications for Managers • Behavior follows perception, so to influence employee behavior at work, assess how employees perceive their work. • Make better decisions by recognizing perceptual biases and decision-making errors we tend to commit. • Adjust your decision-making approach to the national culture you’re operating in and to the criteria your organization values. • Combine rational analysis with intuition. • Try to enhance your creativity. Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Copyright Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Essentials of Organizational Behavior Fourteenth Edition Chapter 7 Motivation Concepts Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. After studying this chapter you should be able to: 1. Describe the three key elements of motivation. 2. Compare the early theories of motivation. 3. Contrast the elements of self-determination theory and goal-setting theory. 4. Demonstrate the differences between self-efficacy theory, reinforcement theory, equity theory, and expectancy theory. 5. Identify the implications of employee job engagement for managers. 6. Describe how the contemporary theories of motivation complement one another. Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. What Is Motivation? • Motivation: The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining an organizational goal – Intensity: the amount of effort put forth to meet the goal – Direction: efforts are channeled toward organizational goals – Persistence: how long the effort is maintained Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Early Theories of Motivation • Maslow’s Hierarchy of Needs Theory • Herzberg’s Two-Factor (Motivation-Hygiene) Theory • McClellan’s Theory of Needs (Three Needs Theory) Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Hierarchy of Needs Theory (1 of 2) Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Two-Factor Theory Dissatisfied Satisfied • Quality of supervision • Pay • Company policies • Physical working conditions • Relationships • Job security • Promotional opportunities • Opportunities for personal growth • Recognition • Responsibility • Achievement Motivation Factors Hygiene Factors Not Dissatisfied Not Satisfied Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Hierarchy of Needs Theory (2 of 2) Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. McClelland’s Theory of Needs • Need for Achievement (nAch) – The drive to excel • Need for Power (nPow) – The need to make others behave in a way they would not have behaved otherwise • Need for Affiliation (nAff) – The desire for friendly and close interpersonal relationships Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. McClelland’s High Achievers • High achievers prefer jobs with: – Personal responsibility – Feedback – Intermediate degree of risk (50/50) • High achievers are not necessarily good managers • High nPow and low nAff is related to managerial success Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Contemporary Theories of Motivation • Self-Determination Theory • Goal-Setting Theory – Management by Objectives Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Self-Determination Theory • Self-determination theory: People prefer to have control over their actions so when they feel they are forced to do something they previously enjoyed, motivation will decrease – Cognitive evaluation theory: Proposes that the introduction of extrinsic rewards for work (pay) that was previously intrinsically rewarding tends to decrease overall motivation – Self-concordance: Considers how strongly people’s reasons for pursuing goals are consistent with their interests and core values Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Goal-Setting Theory • Goals increase performance when goals are: – Specific – Difficult, but accepted by employees – Accompanied by feedback: self-generated feedback is best • Contingencies in goal-setting theory – Goal commitment: public goals better – Task characteristics: simple and familiar is better – National culture: Western culture suits best Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Management by Objectives • Management by objectives (MBO): Converts overall organizational objectives into specific objectives for work units and individuals • Common ingredients: – – – – Goal specificity Explicit time period Performance feedback Participation in decision making Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Cascading of Objectives Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Other Contemporary Theories of Motivation • Self-Efficacy Theory • Reinforcement Theory • Equity Theory – Organizational Justice • Expectancy Theory Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Self-Efficacy Theory (1 of 2) • Self-efficacy theory: An individual’s belief that he or she is capable of performing a task – Also known as social cognitive theory or social learning theory • Self-efficacy increased by: 1. Enactive mastery: gain experience 2. Vicarious modeling: see someone else do the task 3. Verbal persuasion: someone convinces you that you have the skills 4. Arousal: get energized Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Self-Efficacy Theory (2 of 2) Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Reinforcement Theory • Reinforcement theory: Behavior is a function of consequences – Operant conditioning theory ▪ Behaviorism – Social- learning theory and reinforcement Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Equity Theory (1 of 2) • Equity theory: Employees weigh what they put into a job situation (input) against what they get from it (outcome) – They compare their input-outcome ratio with the inputoutcome ratio of relevant others Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Equity Theory (2 of 2) • Equity theory suggests employees who perceive inequity will make one of six choices: 1. 2. 3. 4. 5. 6. Change inputs Change outcomes Distort perceptions of self Distort perceptions of others Choose a different referent Leave the field Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Model of Organizational Justice Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Expectancy Theory (1 of 2) • Three key relationships: 1. Effort-performance: perceived probability that exerting effort leads to successful performance 2. Performance-reward: the belief that successful performance leads to desired outcome 3. Rewards-personal goals: the attractiveness of organizational outcome (reward) to the individual Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Expectancy Theory (2 of 2) Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Job Engagement • Job Engagement: The investment of an employee’s physical, cognitive, and emotional energies into job performance • Organizations where employees are highly engaged have: – Higher levels of productivity – Fewer safety incidents – Lower turnover Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Integrating Theories Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Implications for Managers • Make sure extrinsic rewards for employees are not viewed as coercive, but instead provide information about competence and relatedness. • Consider goal-setting theory. Clear and difficult goals often lead to higher levels of employee productivity. • Consider reinforcement theory regarding quality and quantity of work, persistence of effort, absenteeism, and accident rates. • Consult equity theory to help understand productivity, satisfaction, absence, and turnover variables. • Expectancy theory offers a powerful explanation of performance variables such as employee productivity, absenteeism, and turnover. Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Copyright Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Essentials of Organizational Behavior Fourteenth Edition Chapter 8 Motivation: From Concepts to Applications Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. After studying this chapter you should be able to: 1. Describe how the job characteristics model (JCM) motivates by changing the work environment. 2. Compare the main ways that jobs can be redesigned. 3. Explain how specific alternative work arrangements can motivate employees. 4. Describe how employee involvement measures can motivate employees. 5. Demonstrate how the different types of variable-pay programs can increase employee motivation. 6. Show how flexible benefits turn benefits into motivators. 7. Identify the motivational benefits of employee recognition programs. Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Motivating by Job Design: The Job Characteristics Model • Job characteristics model: jobs are described in terms of five core dimensions: – – – – – Skill variety Task identity Task significance Autonomy Feedback Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. The Job Characteristics Model Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Designing Motivational Jobs • JCM-designed jobs give internal rewards • Individual’s growth needs are moderating factors • Motivating jobs must: – Be autonomous – Provide feedback – Be meaningful Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Redesigning Jobs: Job Rotation • Job Rotation – The periodic shifting of an employee from one task to another ▪ Also called cross-training – Increases job satisfaction and organizational commitment Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Redesigning Jobs: Relational Job Design • Relational Job Design – Designing work so employees are motivated to promote the well-being of the organization’s beneficiaries ▪ Relate stories from customers who have benefited from the company’s products or services ▪ Connect employees directly with beneficiaries Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Using Alternative Work Arrangements to Motivate • Flextime – Some discretion over when worker starts and leaves • Job Sharing – Two or more individuals split a traditional job • Telecommuting – Work remotely at least two days per week Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Employee Involvement • Employee involvement: A participative process that uses the input of employees to increase their commitment to the organization’s success • Two types: 1. Participative management 2. Representative participation Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Participative Management • Participative management: Subordinates share a significant degree of decision-making power with superiors – To be effective: ▪ Followers must have confidence and trust in leaders ▪ Leaders should avoid coercion and stress organizational consequences of decisions – Only a modest influence on productivity, motivation, and job satisfaction Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Representative Participation • Representative participation: Workers are represented by a small group of employees who participate in decisions affecting personnel – Works councils – Board membership • Redistribute power within an organization • Does not appear to be very motivational Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Using Pay to Motivate Employees • Major strategic rewards decisions: – What to pay employees – How to pay individual employees Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. What to Pay • Establishing a pay structure – Balance between: ▪ Internal equity – the worth of the job to the organization ▪ External equity – the external competitiveness of an organization’s pay relative to pay elsewhere in its industry – A strategic decision with trade-offs Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. How to Pay • Variable-Pay Programs – Base a portion of the pay on a given measure of performance ▪ ▪ ▪ ▪ ▪ Piece-rate pay plan Merit-based pay Bonuses Profit-sharing plans Employee-stock ownership plan (ESOP) Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Variable-Pay Programs 1. Piece-Rate Pay: workers are paid a fixed sum for each unit of production completed 2. Merit-Based Pay: pay is based on individual performance appraisal ratings 3. Bonuses: rewards employees for recent performance 4. Employee Stock Ownership Plans (ESOPs) – plans in which employees acquire stock, often at below-market prices Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Using Benefits to Motivate • Benefits are both an employee provision and an employee motivator • Individual employees value the components of benefits packages differently • A flexible benefits program turns the benefits package into a motivational tool Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Using Intrinsic Rewards to Motivate • Employee recognition programs – Can be as simple as a spontaneous comment – Can be formalized in a program – Recognition is the most powerful workplace motivator – and the least expensive – but fairness is important Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Implications for Managers • Recognize individual differences • Use goals and feedback • Allow employees to participate in decisions that affect them • Link rewards to performance • Check the reward system for equity Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. Copyright Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved. with MyManagementLab® • ynamic Study Modules—Helps students study effectively on their own by D continuously assessing their activity and performance in real time. Here’s how it works: students complete a set of questions with a unique answer format that also asks them to indicate their confidence level. Questions repeat until the student can answer them all correctly and confidently. Once completed, Dynamic Study Modules explain the concept using materials from the text. 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For students, single sign-on provides access to all the personalized learning resources that make studying more efficient and effective. ALWAYS LEARNING A01_ROBB3859_14_SE_FM.indd 1 24/09/16 11:56 am This page intentionally left blank A01_HANL4898_08_SE_FM.indd 2 24/12/14 12:49 PM Fourteenth Edition Essentials of Organizational Behavior Stephen P. Robbins San Diego State University Timothy A. Judge The Ohio State University New York, NY A01_ROBB3859_14_SE_FM.indd 3 24/09/16 11:56 am Vice President, Business Publishing: Donna Battista Director of Portfolio Management: Stephanie Wall Portfolio Manager: Kris Ellis-Levy Editorial Assistant: Hannah Lamarre Vice President, Product Marketing: Roxanne McCarley Director of Strategic Marketing: Brad Parkins Strategic Marketing Manager: Deborah Strickland Product Marketer: Becky Brown Field Marketing Manager: Lenny Ann Kucenski Product Marketing Assistant: Jessica Quazza Vice President, Production and Digital Studio, Arts and Business: Etain O’Dea Director of Production, Business: Jeff Holcomb Managing Producer, Business: Ashley Santora Content Producer: Claudia Fernandes Operations Specialist: Carol Melville Creative Director: Blair Brown Manager, Learning Tools: Brian Surette Content Developer, Learning Tools: Lindsey Sloan Managing Producer, Digital Studio, Arts and Business: Diane Lombardo Digital Studio Producer: Monique Lawrence Digital Studio Producer: Alana Coles Full-Service Project Management and Composition: Cenveo® Publisher Services Interior and Cover Designer: Cenveo® Publisher Services Cover Art: LeitnerR/Fotolia Printer/Binder: RR Donnelley/Crawfordsville Cover Printer: Phoenix Color/Hagerstown Copyright © 2018, 2016, 2014 by Pearson Education, Inc. or its affiliates. All Rights Reserved. Manufactured in the United States of America. This publication is protected by copyright, and permission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise. For information regarding permissions, request forms, and the appropriate contacts within the Pearson Education Global Rights and Permissions department, please visit www.pearsoned.com/permissions/ Acknowledgments of third-party content appear on the appropriate page within the text. PEARSON, ALWAYS LEARNING, and MYMANAGEMENTLAB® are exclusive trademarks owned by Pearson Education, Inc. or its affiliates in the U.S. and/or other countries. Unless otherwise indicated herein, any third-party trademarks, logos, or icons that may appear in this work are the property of their respective owners, and any references to third-party trademarks, logos, icons, or other trade dress are for demonstrative or descriptive purposes only. Such references are not intended to imply any sponsorship, endorsement, authorization, or promotion of Pearson’s products by the owners of such marks, or any relationship between the owner and Pearson Education, Inc., or its affiliates, authors, licensees, or distributors. Library of Congress Cataloging-in-Publication Data Names: Robbins, Stephen P., author. | Judge, Tim, author. Title: Essentials of organizational behavior / Stephen P. Robbins, San Diego State University, Timothy A. Judge, University of Notre Dame. Description: Fourteen edition. | Boston : Pearson Education,  | Includes index. Identifiers: LCCN 2016022886 (print) | LCCN 2016034760 (ebook) | ISBN 9780134523859 (pbk. : alk. paper) | ISBN 9780134527314 Subjects: LCSH: Organizational behavior. Classification: LCC HD58.7 .R6 2017 (print) | LCC HD58.7 (ebook) | DDC 658.3––dc23 LC record available at https://lccn.loc.gov/2016022886 10 9 8 7 6 5 4 3 2 1 ISBN 10: 0-13-452385-7 ISBN 13: 978-0-13-452385-9 A01_ROBB3859_14_SE_FM.indd 4 30/09/16 11:59 AM This book is dedicated to our friends and colleagues in The Organizational Behavior Teaching Society who, through their teaching, research and commitment to the leading process, have significantly improved the ability of students to understand and apply OB concepts. A01_ROBB3859_14_SE_FM.indd 5 24/09/16 11:56 am BRIEF CONTENTS PART 1 Understanding Yourself and Others Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 1 What Is Organizational Behavior? 1 Diversity in Organizations 17 Attitudes and Job Satisfaction 34 Emotions and Moods 47 Personality and Values 64 PART 2 Making and Implementing Decisions Chapter 6 Chapter 7 Chapter 8 82 Perception and Individual Decision Making Motivation Concepts 100 Motivation: From Concepts to Applications PART 3 Communicating in Groups and Teams 82 120 136 Chapter 9 Foundations of Group Behavior 136 Chapter 10 Understanding Work Teams 154 Chapter 11 Communication 170 PART 4 Negotiating Power and Politics Chapter 12 Leadership 186 Chapter 13 Power and Politics 207 Chapter 14 Conflict and Negotiation 186 226 PART 5 Leading, Understanding, and Transforming the Organization System 245 Chapter 15 Foundations of Organization Structure 245 Chapter 16 Organizational Culture 265 Chapter 17 Organizational Change and Stress Management 285 vi A01_ROBB3859_14_SE_FM.indd 6 24/09/16 11:56 am CONTENTS Preface xxii Acknowledgments xxix About the Authors xxx PART 1 Understanding Yourself and Others 1 Chapter 1 WHAT IS ORGANIZATIONAL BEHAVIOR? 1 Chapter Warm-up 1 Management and Organizational Behavior 2 Organizational Behavior (OB) Defined 3 Effective versus Successful Managerial Activities 3 Watch It—Herman Miller: Organizational Behavior 4 Complementing Intuition with Systematic Study 4 Big Data 5 Disciplines That Contribute to the OB Field 6 Psychology 6 Social Psychology 6 Sociology 7 Anthropology 7 There Are Few Absolutes in OB 7 Challenges and Opportunities for OB 8 Continuing Globalization 8 Workforce Demographics 10 Workforce Diversity 10 Social Media 10 Employee Well-Being at Work 11 Positive Work Environment 11 Ethical Behavior 12 Coming Attractions: Developing an OB Model 12 Overview 12 Inputs 13 Processes 13 Outcomes 14 Summary 15 Implications for Managers 15 Personal Inventory Assessments: Multicultural Awareness Scale 16 vii A01_ROBB3859_14_SE_FM.indd 7 24/09/16 11:56 am viii Contents Chapter 2 DIVERSITY IN ORGANIZATIONS 17 Chapter Warm-up 17 Diversity 17 Demographic Characteristics 18 Levels of Diversity 18 Discrimination 19 Stereotype Threat 19 Discrimination in the Workplace 20 Biographical Characteristics 21 Age 21 Sex 22 Race and Ethnicity 23 Disabilities 23 Hidden Disabilities 24 Other Differentiating Characteristics 25 Religion 25 Sexual Orientation and Gender Identity 25 Cultural Identity 27 Watch It—Verizon: Diversity 27 Ability 27 Intellectual Abilities 27 Physical Abilities 29 Implementing Diversity Management Strategies 29 Attracting, Selecting, Developing, and Retaining Diverse Employees 30 Diversity in Groups 31 Diversity Programs 32 Summary 32 Implications for Managers 33 Try It—Simulation: Human Resources 33 Personal Inventory Assessments: Intercultural Sensitivity Scale 33 Chapter 3 ATTITUDES AND JOB SATISFACTION 34 Chapter Warm-up 34 Attitudes 34 Watch It—Gawker Media: Attitudes and Job Satisfaction Attitudes and Behavior 36 Job Attitudes 37 Job Satisfaction and Job Involvement 37 A01_ROBB3859_14_SE_FM.indd 8 36 24/09/16 11:56 am Contents ix Organizational Commitment 37 Perceived Organizational Support 37 Employee Engagement 38 Measuring Job Satisfaction 38 Approaches to Measurement 39 Measured Job Satisfaction Levels 39 What Causes Job Satisfaction? 39 Job Conditions 40 Personality 41 Pay 41 Corporate Social Responsibility (CSR) 41 Outcomes of Job Satisfaction 42 Job Performance 42 Organizational Citizenship Behavior (OCB) 42 Customer Satisfaction 42 Life Satisfaction 43 The Impact of Job Dissatisfaction 43 Counterproductive Work Behavior (CWB) 43 Understanding the Impact 45 Summary 46 Implications for Managers 46 Try It—Simulation: Attitudes #038; Job Satisfaction 46 Personal Inventory Assessments: Core Self-Evaluation (CSE) Scale 46 Chapter 4 EMOTIONS AND MOODS 47 Chapter Warm-up 47 What Are Emotions and Moods? 47 The Basic Emotions 48 Moral Emotions 49 The Basic Moods: Positive and Negative Affect Experiencing Moods and Emotions 50 The Function of Emotions 50 Sources of Emotions and Moods 51 Personality 52 Time of Day 52 Day of the Week 52 Weather 52 Stress 54 Sleep 54 A01_ROBB3859_14_SE_FM.indd 9 49 24/09/16 11:56 am x Contents Exercise 54 Age 54 Sex 54 Emotional Labor 55 Controlling Emotional Displays 55 Emotional Dissonance and Mindfulness 56 Affective Events Theory 56 Emotional Intelligence 56 Emotion Regulation 58 Emotion Regulation Influences and Outcomes 58 Emotion Regulation Techniques 58 Ethics of Emotion Regulation 59 Watch It—East Haven Fire Department: Emotions and Moods OB Applications of Emotions and Moods 59 Selection 59 Decision Making 60 Creativity 60 Motivation 60 Leadership 60 Customer Service 61 Job Attitudes 61 Deviant Workplace Behaviors 61 Safety and Injury at Work 62 59 Summary 62 Implications for Managers 62 Try It—Simulation: Emotions #038; Moods 63 Personal Inventory Assessments: Emotional Intelligence Assessment 63 Chapter 5 PERSONALITY AND VALUES 64 Chapter Warm-up 64 Personality 64 What Is Personality? 65 Personality Frameworks 66 The Myers-Briggs Type Indicator 66 The Big Five Personality Model 67 How Do the Big Five Traits Predict Behavior at Work? The Dark Triad 69 Other Personality Attributes Relevant to OB 71 Core Self-Evaluation (CSE) 71 A01_ROBB3859_14_SE_FM.indd 10 68 24/09/16 11:56 am Contents xi Self-Monitoring 72 Proactive Personality 72 Personality and Situations 72 Situation Strength Theory 73 Trait Activation Theory 74 Values 75 Watch It—Honest Tea: Ethics–Company Mission and Values 75 Terminal versus Instrumental Values 75 Generational Values 76 Linking an Individual’s Personality and Values to the Workplace 76 Person–Job Fit 76 Person–Organization Fit 77 Other Dimensions of Fit 77 Cultural Values 78 Hofstede’s Framework 78 The GLOBE Framework 79 Comparison of Hofstede’s Framework and the Globe Framework 79 Summary 81 Implications for Managers 81 Personal Inventory Assessments: Personality Style Indicator 81 PART 2 Making and Implementing Decisions 82 Chapter 6 PERCEPTION AND INDIVIDUAL DECISION MAKING 82 Chapter Warm-up 82 What Is Perception? 82 Factors That Influence Perception 83 Watch It—Orpheus Group Casting: Social Perception and Attribution 84 Person Perception: Making Judgments about Others 84 Attribution Theory 84 Common Shortcuts in Judging Others 86 The Link between Perception and Individual Decision Making 87 Decision Making in Organizations 87 The Rational Model, Bounded Rationality, and Intuition 87 A01_ROBB3859_14_SE_FM.indd 11 24/09/16 11:56 am xii Contents Common Biases and Errors in Decision Making 89 Influences on Decision Making: Individual Differences and Organizational Constraints 91 Individual Differences 92 Organizational Constraints 93 What about Ethics in Decision Making? 93 Three Ethical Decision Criteria 94 Choosing between Criteria 94 Behavioral Ethics 95 Lying 95 Creativity, Creative Decision Making, and Innovation in Organizations 95 Creative Behavior 96 Causes of Creative Behavior 96 Creative Outcomes (Innovation) 98 Summary 98 Implications for Managers 98 Try It—Simulation: Perception #038; Individual Decision Making 99 Personal Inventory Assessments: How Creative Are You? Chapter 7 Motivation Concepts 99 100 Chapter Warm-up 100 Motivation 100 Watch It—Motivation (TWZ Role Play) 101 Early Theories of Motivation 101 Hierarchy of Needs Theory 101 Two-Factor Theory 102 McClelland’s Theory of Needs 102 Contemporary Theories of Motivation 104 Self-Determination Theory 104 Goal-Setting Theory 105 Other Contemporary Theories of Motivation 108 Self-Efficacy Theory 108 Reinforcement Theory 110 Equity Theory/Organizational Justice 111 Expectancy Theory 115 Job Engagement 116 Integrating Contemporary Theories of Motivation 116 A01_ROBB3859_14_SE_FM.indd 12 30/09/16 11:42 AM Contents xiii Summary 118 Implications for Managers 118 Try It—Simulation: Motivation 118 Personal Inventory Assessments: Work Motivation Indicator 119 Chapter 8 MOTIVATION: FROM CONCEPTS TO APPLICATIONS 120 Chapter Warm-up 120 Motivating by Job Design: The Job Characteristics Model (JCM) 121 Elements of the JCM 121 Efficacy of the JCM 121 Motivating Potential Score (MPS) 122 Cultural Generalizability of the JCM 123 Using Job Redesign to Motivate Employees 123 Job Rotation 123 Relational Job Design 124 Using Alternative Work Arrangements to Motivate Employees 124 Flextime 125 Job Sharing 126 Telecommuting 127 Using Employee Involvement and Participation (EIP) to Motivate Employees 127 Cultural EIP 128 Forms of Employee Involvement Programs 128 Using Extrinsic Rewards to Motivate Employees 129 What to Pay: Establishing a Pay Structure 129 How to Pay: Rewarding Individual Employees through Variable-Pay Programs 129 Using Benefits to Motivate Employees 133 Using Intrinsic Rewards to Motivate Employees 133 Watch It—ZAPPOS: Motivating Employees through Company Culture 134 Summary 134 Implications for Managers 135 Try It—Simulation: Extrinsic #038; Intrinsic Motivation 135 Personal Inventory Assessments: Diagnosing the Need for Team Building 135 A01_ROBB3859_14_SE_FM.indd 13 24/09/16 11:56 am xiv Contents PART 3 Communicating in Groups and Teams Chapter 9 FOUNDATIONS OF GROUP BEHAVIOR 136 136 Chapter Warm-up 136 Groups and Group Identity 137 Social Identity 137 Ingroups and Outgroups 137 Stages of Group Development 138 Watch It—Witness.org: Managing Groups #038; Teams 138 Group Property 1: Roles 139 Role Perception 140 Role Expectations 140 Role Conflict 140 Group Property 2: Norms 140 Norms and Emotions 141 Norms and Conformity 141 Norms and Behavior 142 Positive Norms and Group Outcomes 142 Negative Norms and Group Outcomes 143 Norms and Culture 144 Group Property 3: Status, and Group Property 4: Size 144 Group Property 3: Status 144 Group Property 4: Size 146 Group Property 5: Cohesiveness, and Group Property 6: Diversity 146 Group Property 5: Cohesiveness 147 Group Property 6: Diversity 147 Group Decision Making 149 Groups versus the Individual 149 Groupthink 150 Groupshift or Group Polarization 151 Group Decision-Making Techniques 151 Summary 152 Implications for Managers 153 Try It—Simulation: Group Behavior 153 Personal Inventory Assessments: Communicating Supportively 153 Chapter 10 UNDERSTANDING WORK TEAMS Chapter Warm-up 154 Why Have Teams Become so Popular? A01_ROBB3859_14_SE_FM.indd 14 154 154 24/09/16 11:56 am Contents xv Differences between Groups and Teams 155 Types of Teams 156 Problem-Solving Teams 156 Self-Managed Work Teams 156 Cross-Functional Teams 157 Virtual Teams 158 Multiteam Systems 158 Watch It—Teams (TWZ Role Play) 159 Creating Effective Teams 159 Team Context: What Factors Determine Whether Teams Are Successful? 160 Team Composition 161 Team Processes 164 Turning Individuals into Team Players 166 Selecting: Hiring Team Players 167 Training: Creating Team Players 167 Rewarding: Providing Incentives to Be a Good Team Player 167 Beware! Teams Aren’t Always the Answer 168 Summary 168 Implications for Managers 168 Try It—Simulation: Teams 169 Personal Inventory Assessments: Team Development Behaviors 169 Chapter 11 COMMUNICATION 170 Chapter Warm-up 170 Communication 171 Functions of Communication 171 The Communication Process 172 Direction of Communication 172 Downward Communication 173 Upward Communication 173 Lateral Communication 173 Formal Small-Group Networks 174 The Grapevine 174 Modes of Communication 175 Oral Communication 175 Written Communication 176 Nonverbal Communication 176 A01_ROBB3859_14_SE_FM.indd 15 24/09/16 11:56 am xvi Contents Choice of Communication Channel 176 Channel Richness 176 Choosing Communication Methods 177 Information Security 178 Persuasive Communication 178 Automatic and Controlled Processing 178 Tailoring the Message 179 Barriers to Effective Communication 180 Filtering 180 Selective Perception 180 Information Overload 180 Emotions 181 Language 181 Silence 181 Communication Apprehension 181 Lying 182 Cultural Factors 182 Cultural Barriers 182 Cultural Context 183 A Cultural Guide 183 Watch It—Communication (TWZ Role Play) 184 Summary 184 Implications for Managers 185 Try It—Simulation: Communication 185 Personal Inventory Assessments: Communication Styles PART 4 Negotiating Power and Politics Chapter 12 LEADERSHIP 186 186 Chapter Warm-up 186 Watch It—Leadership (TWZ Role Play) 186 Trait Theories of Leadership 187 Personality Traits and Leadership 187 Emotional Intelligence (EI) and Leadership Behavioral Theories 188 Initiating Structure 188 Consideration 189 Cultural Differences 189 Contingency Theories 189 The Fiedler Model 189 A01_ROBB3859_14_SE_FM.indd 16 185 188 24/09/16 11:56 am Contents xvii Situational Leadership Theory 191 Path–Goal Theory 191 Leader–Participation Model 192 Contemporary Theories of Leadership 192 Leader–Member Exchange (LMX) Theory 192 Charismatic Leadership 194 Transactional and Transformational Leadership 196 Responsible Leadership 199 Authentic Leadership 199 Ethical Leadership 200 Servant Leadership 200 Positive Leadership 201 Trust 201 Mentoring 203 Challenges to Our Understanding of Leadership Leadership as an Attribution 203 Substitutes for and Neutralizers of Leadership Online Leadership 205 203 204 Summary 205 Implications for Managers 205 Try It—Simulation: Leadership 206 Personal Inventory Assessments: Ethical Leadership Assessment 206 Chapter 13 POWER AND POLITICS 207 Chapter Warm-up 207 Watch It—Power and Political Behavior 207 Power and Leadership 208 Bases of Power 208 Formal Power 208 Personal Power 209 Which Bases of Power Are Most Effective? 210 Dependence: The Key to Power 210 The General Dependence Postulate 210 What Creates Dependence? 210 Social Network Analysis: A Tool for Assessing Resources 211 Power Tactics 212 Using Power Tactics 212 A01_ROBB3859_14_SE_FM.indd 17 24/09/16 11:56 am xviii Contents Cultural Preferences for Power Tactics Applying Power Tactics 214 213 How Power Affects People 214 Power Variables 214 Sexual Harassment: Unequal Power in the Workplace Politics: Power in Action 216 Definition of Organizational Politics The Reality of Politics 216 215 216 Causes and Consequences of Political Behavior 217 Factors Contributing to Political Behavior 217 How Do People Respond to Organizational Politics? Impression Management 220 The Ethics of Behaving Politically 222 Mapping Your Political Career 223 219 Summary 224 Implications for Managers 225 Try It—Simulation: Power #038; Politics 225 Personal Inventory Assessments: Gaining Power and Influence 225 Chapter 14 Conflict and Negotiation 226 Chapter Warm-up 226 A Definition of Conflict 226 Types of Conflict 228 Loci of Conflict 229 The Conflict Process 229 Stage I: Potential Opposition or Incompatibility Stage II: Cognition and Personalization 231 Stage III: Intentions 231 Stage IV: Behavior 232 Stage V: Outcomes 233 230 Watch It—Gordon Law Group: Conflict and Negotiation Negotiation 235 Bargaining Strategies 235 The Negotiation Process 237 Individual Differences in Negotiation Effectiveness Negotiating in a Social Context 241 Reputation 241 Relationships 242 A01_ROBB3859_14_SE_FM.indd 18 235 239 30/09/16 11:42 AM Contents xix Third-Party Negotiations 242 Summary 243 Implications for Managers 243 Personal Inventory Assessments: Strategies for Handling Conflict 244 PART 5 Leading, Understanding, and Transforming the Organization System 245 Chapter 15 Foundations of Organization Structure 245 Chapter Warm-up 245 What Is Organizational Structure? 246 Work Specialization 246 Departmentalization 247 Chain of Command 248 Span of Control 249 Centralization and Decentralization 250 Formalization 251 Boundary Spanning 251 Common Organizational Frameworks and Structures 252 The Simple Structure 252 The Bureaucracy 253 The Matrix Structure 254 Alternate Design Options 255 The Virtual Structure 255 The Team Structure 256 The Circular Structure 257 The Leaner Organization: Downsizing 257 Why Do Structures Differ? 258 Organizational Strategies 258 Organization Size 260 Technology 260 Environment 260 Institutions 261 Organizational Designs and Employee Behavior 262 Work Specialization 262 Span of Control 262 Centralization 263 Predictability versus Autonomy 263 National Culture 263 Watch It—ZipCar: Organizational Structure A01_ROBB3859_14_SE_FM.indd 19 263 30/09/16 11:42 AM xx Contents Summary 263 Implications for Managers 264 Try It—Simulation: Organizational Structure 264 Personal Inventory Assessments: Organizational Structure Assessment 264 Chapter 16 ORGANIZATIONAL CULTURE 265 Chapter Warm-up 265 Watch It—Organizational Culture (TWZ Role Play) 265 What Is Organizational Culture? 266 A Definition of Organizational Culture 266 Do Organizations Have Uniform Cultures? 266 Strong versus Weak Cultures 267 Culture versus Formalization 268 What Do Cultures Do? 268 The Functions of Culture 268 Culture Creates Climate 269 The Ethical Dimension of Culture 269 Culture and Sustainability 270 Culture and Innovation 271 Culture as an Asset 271 Culture as a Liability 272 Creating and Sustaining Culture 273 How a Culture Begins 273 Keeping a Culture Alive 274 Summary: How Organizational Cultures Form 276 How Employees Learn Culture 276 Stories 277 Rituals 277 Symbols 277 Language 278 Influencing an Organizational Culture 278 An Ethical Culture 278 A Positive Culture 279 A Spiritual Culture 280 The Global Context 282 Summary 283 Implications for Managers 283 Try It—Simulation: Organizational Culture 283 Personal Inventory Assessments: Organizational Structure Assessment 284 A01_ROBB3859_14_SE_FM.indd 20 24/09/16 11:56 am Contents xxi Chapter 17 ORGANIZATIONAL CHANGE AND STRESS MANAGEMENT 285 Chapter Warm-up 285 Change 285 Forces for Change 286 Reactionary versus Planned Change 286 Resistance to Change 287 Overcoming Resistance to Change 287 The Politics of Change 289 Approaches to Managing Organizational Change 290 Lewin’s Three-Step Model 290 Kotter’s Eight-Step Plan 290 Action Research 291 Organizational Development 291 Creating a Culture for Change 293 Managing Paradox 293 Stimulating a Culture of Innovation 294 Creating a Learning Organization 295 Organizational Change and Stress 296 Watch It—East Haven Fire Department: Managing Stress Stress at Work 296 What Is Stress? 297 Potential Sources of Stress at Work 298 Individual Differences in Stress 300 Cultural Differences 301 Consequences of Stress at Work 301 Managing Stress 302 Individual Approaches 302 Organizational Approaches 303 296 Summary 304 Implications for Managers 305 Try It—Simulation: Change 305 Personal Inventory Assessments: Tolerance of Ambiguity Scale 305 Epilogue 306 Endnotes 307 Glossary 354 Index 363 A01_ROBB3859_14_SE_FM.indd 21 24/09/16 11:56 am PREFACE This book was created as an alternative to the 600- or 700-page comprehensive text in organizational behavior (OB). It attempts to provide balanced coverage of all the key elements comprising the discipline of OB in a style that readers will find both informative and interesting. We’re pleased to say that this text has achieved a wide following in short courses and executive programs as well as in traditional courses as a companion volume to experiential, skill development, case, and readings books. It is currently used at more than 500 colleges and universities in the United States, Canada, Latin America, Europe, Australia, and Asia. It’s also been translated into Spanish, Portuguese, Japanese, Chinese, Dutch, Polish, Turkish, Danish, and Bahasa Indonesian. KEY CHANGES FOR THE FOURTEENTH EDITION • Increased content coverage was added to include updated research, relevant discussion, and new exhibits on current issues of all aspects of organizational behavior. • Increased integration of contemporary global issues was added into topic discussions. • Extensive reorganization of all chapters with new headings and subsections to make navigating the print and digital versions of the text easier and bring important content to the fore. • Increased cross-references between chapters to link themes and concepts for the student’s quick access and to provide a more in-depth understanding of topics. • New assisted and auto-graded questions that students can complete and submit via MyManagementLab are provided for each chapter. • A new feature, Try It, has been added to 14 chapters to direct the student’s attention to MyManagementLab simulations specific to the content in the text. RETAINED FROM THE PREVIOUS EDITION What do people like about this book? Surveys of users have found general agreement about the following features. Needless to say, they’ve all been retained in this edition. xxii A01_ROBB3859_14_SE_FM.indd 22 • Length. Since its inception in 1984, we’ve tried diligently to keep this book in the range of 325 to 400 pages. Users tell us this length allows them considerable flexibility in assigning supporting materials and projects. • Balanced topic coverage. Although short in length, this book continues to provide balanced coverage of all the key concepts in OB. This includes not only traditional topics such as personality, motivation, and leadership but also cutting-edge issues such as emotions, diversity, negotiation, and teamwork. • Writing style. This book is frequently singled out for its fluid writing style and extensive use of exles. Users regularly tell us that they find this book “conversational,” “interesting,” “student friendly,” and “very clear and understandable.” 24/09/16 11:56 am Preface xxiii • Practicality. This book has never been solely about theory. It’s about using theory to better explain and predict the behavior of people in organizations. In each edition of this book, we have focused on making sure that readers see the link between OB theories, research, and implications for practice. • Absence of pedagogy. Part of the reason we’ve been able to keep this book short in length is that it doesn’t include review questions, cases, exercises, or similar teaching/learning aids. It continues to provide only the basic core of OB knowledge, allowing instructors the maximum flexibility in designing and shaping their courses. • Integration of globalization, diversity, and ethics. The topics of globalization and cross-cultural differences, diversity, and ethics are discussed throughout this book. Rather than being presented only in separate chapters, these topics have been woven into the context of relevant issues. Users tell us they find that this integrative approach makes these topics more fully part of OB and reinforces their importance. • Comprehensive supplements. Although this book may be short in length, it’s not short on supplements. It comes with a complete, high-tech support package for both faculty and students. Instructors are provided with a comprehensive Instructor’s Manual and Test Bank, TestGenerator, and PowerPoint slides. The MyManagementLab course provides both instructors and students with various types of assessments, video exercises, decision-making simulations, and Personal Inventory Assessments. CHAPTER-BY-CHAPTER CHANGES Chapter 1: What Is Organizational Behavior? • New content: Effective versus Successful Managerial Activities; Current Usage of, New Trends in, and Limitations of Big Data; Workforce Demographics; Social Media; and Inputs, Processes, and Outcomes of our General Model of Organizational Behavior • Newly revised sections: Management and Organizational Behavior • New research incorporated in the following areas: Introduction to Organizational Behavior, Big Data, Adapting to Differing Cultural and Regulatory Norms, Positive Work Environments, and Ethical Behavior • New features: Watch It (Herman Miller: Organizational Behavior) and Personal Inventory Assessments (Multicultural Awareness Scale) Chapter 2: Diversity in Organizations • New content: Stereotype Threat and Hidden Disabilities • Newly revised sections: Learning Objectives, Demographic Characteristics, Discrimination, Implementing Diversity Management Strategies, and Implications for Managers • New research incorporated in the following areas: Discrimination in the Workplace; Biographical Characteristics, including Age, Sex, Race, and Ethnicity; Disabilities; the Wonderlic Intellectual Ability Test; Diversity in Groups; and International Research on Religion, Sexual Orientation, Gender Identity, and Physical Abilities A01_ROBB3859_14_SE_FM.indd 23 24/09/16 11:56 am xxiv Preface • New features: Personal Inventory Assessments (Intercultural Sensitivity Scale), Watch It (Verizon: Diversity), and Try It (Simulation: Human Resources) Chapter 3: Attitudes and Job Satisfaction • New content: The Causes of Job Satisfaction, including Job Conditions, Personality, Pay, and Corporate Social Responsibility; Life Satisfaction as an Outcome of Job Satisfaction; and Counterproductive Work Behavior (CWB) as an Outcome of Job Dissatisfaction • Newly revised sections: Learning Objectives and Implications for Managers • New research incorporated in the following areas: Attitudes and Behavior, Employee Engagement, Measured Job Satisfaction Levels, How Satisfied Are People in Their Jobs, and Organizational Citizenship Behavior (OCB) as an Outcome of Job Satisfaction • New features: Watch It (Gawker Media: Attitudes and Job Satisfaction), Personal Inventory Assessments [Core Self-Evaluation (CSE) Scale], and Try It (Simulation: Attitudes #038; Job Satisfaction) Chapter 4: Emotions and Moods • New content: Moral Emotions; the Functions of Emotions, including Whether or Not Emotions Make Us Ethical; Emotion Regulation Influences, Outcomes, and Techniques; and the Ethics of Emotion Regulation • Newly revised sections: Learning Objectives, Time of the Day as a Source of Emotions and Moods, Implications for Managers • New research incorporated in the following areas: Stress, Sleep, Age, and Sex as Sources of Emotions and Moods; Controlling Emotional Displays; Emotional Intelligence; Safety and Injury at Work as Outcomes of Emotions and Moods; and International Research on the Basic Emotions, Experiencing Moods, and Emotions, as well as on the Day of the Week and Weather as Sources of Emotions and Moods • New features: Personal Inventory Assessments (Emotional Intelligence Assessment) and Try It (Simulation: Emotions #038; Moods) Chapter 5: Personality and Values • New content: Whether or Not the Big Five Personality Traits Predict Behavior at Work, Other Dark-Side Traits, and Other Dimensions of Fit • Newly revised sections: Learning Objectives, Personality Frameworks, the MyersBriggs Type Indicator, Cultural Values, Summary, and Implications for Managers • New research incorporated in the following areas: Describing Personality; the Big Five Personality Model; the Dark Triad, Proactive Personality; Organizational Situations, Generational Values; Person–Organization Fit; and International Research on Measuring Personality, Narcissism, and Person–Job Fit • New features: Watch It (Honest Tea: Ethics—Company Mission and Values), and Personality Inventory Assessment (Personality Style Indicator) A01_ROBB3859_14_SE_FM.indd 24 24/09/16 11:56 am Preface xxv Chapter 6: Perception and Individual Decision Making • New content: The Perceiver, Target, and Context as Factors That Influence Perception, Randomness Error; Nudging as an Influence on Decision Making; Choosing between the Three Ethical Decision Criteria; Lying and Ethical Decision Making; and Ethics and Creativity • Newly revised sections: Learning Objectives, the Halo Effect, Escalation of Commitment, Creative Potential, and Implications for Managers • New research incorporated in the following areas: Person Perception: Making Judgments about Others; Attribution Theory; the Link between Perception and Individual Decision Making; Gender as an Influence on Decision Making; Creative Behavior; Intelligence, Personality, and Expertise as Causes of Creative Behavior; the Creative Environment; and International Research on the Three Ethical Decision Criteria • New features: Watch It (Orpheus Group Casting: Social Perception and Attribution), Try It (Simulation: Perception #038; Individual Decision Making), and Personal Inventory Assessments (How Creative Are You?) Chapter 7: Motivation Concepts • New content: Goal-Setting and Ethics, Reinforcement Theory, Influencing SelfEfficacy in Others, Ensuring Justice, and Culture and Justice • Newly revised sections: Learning Objectives, Goal-Setting Theory, and Equity Theory/Organizational Justice • New research incorporated in the following areas: Hierarchy of Needs Theory as well as International Research on McClelland’s Theory of Needs, Goal-Setting Theory, Self-Determination Theory, Self-Efficacy Theory, and Equity Theory/ Organizational Justice • New features: Watch It [Motivation (TWZ Role Play)], Try It (Simulation: Motivation), and Personal Inventory Assessments (Work Motivation Indicator) Chapter 8: Motivation: From Concepts to Applications • Newly revised sections: The Job Characteristics Model, Job Rotation, Rewarding Individual Employees through Variable-Pay Programs, and Using Benefits to Motivate Employees • New research incorporated in the following areas: Job Rotation; Relational Job Design; Flextime; Job Sharing; Participative Management; Establishing a Pay Structure; Merit-Based Pay; Employee Stock Ownership Plans; Using Intrinsic Rewards; and International Research on the Job Characteristics Model, Telecommuting, Cultural Employee Involvement Programs, Representative Participation, Rewarding Individual Employees through Variable-Pay Programs, Piece-Rate Pay, Bonuses, and Profit-Sharing Plans • New features: Personal Inventory Assessments (Diagnosing the Need for Team Building), Watch It (Zappos: Motivating Employees through Company Culture), and Try It (Simulation: Extrinsic #038; Intrinsic Motivation) A01_ROBB3859_14_SE_FM.indd 25 24/09/16 11:56 am xxvi Preface Chapter 9: Foundations of Group Behavior • New content: Social Identity, Ingroups and Outgroups, Norms and Emotions, Positive and Negative Norms and Group Outcomes, Norms and Culture, Group Status Inequity, and Group Status and Stigmatization • Newly revised sections: Learning Objectives; Role Expectations; Role Conflict; Group Status, Group Size, and Dynamics, Group Cohesiveness; Group Diversity; and Implications for Managers • New research incorporated in the following areas: Group Norms, Group Status and Norms, Group Status and Group Interaction, Group Size and Dynamics, Challenges of Group Diversity, Group Effectiveness and Efficiency, and International Research in Group Diversity • New features: Watch It (Witness.org: Managing Groups #038; Teams), Personal Inventory Assessments (Communicating Supportively), and Try It (Simulation: Group Behavior) Chapter 10: Understanding Work Teams • New content: Cultural Differences in Work Teams, Team Identity, Team Cohesion, and Shared Mental Models • Newly revised sections: Problem-Solving Teams, Summary, and Implications for Managers • New research incorporated in the following areas: The Popularity of Teams, Cross-Functional Teams, Virtual Teams, Multiteam Systems, Creating Effective Teams, Team Composition, Personality of Team Members, Size of Teams, and International Research on Climate of Trust • New features: Watch It [Teams (TWZ Role Play)], Personal Inventory Assessments (Team Development Behaviors), and Try It (Simulation: Teams) Chapter 11: Communication • New content: Managing Behavior, Feedback, Emotional Feedback, Emotional Sharing, Persuasion, and Information Exchange • Newly revised sections: Downward and Upward Communication, The Grapevine, Oral Communication, and Telephone • New research incorporated in the following areas: Functions of Communication and Information Overload • New features: Watch It [Communication (TWZ Role Play)], Personal Inventory Assessments (Communication Styles), and Try It (Simulation: Communication) Chapter 12: Leadership • New content: Dark Side Traits, Leader–Member Exchange Theory, How Transformational Leadership Works, Transformational versus Charismatic Leadership, Emotional Intelligence and Leadership, Leader-Participation Model, and Trust and Culture • Newly revised sections: Learning Objectives, Trait Theories of Leadership, Contemporary Theories of Leadership, Behavioral Theories, Responsible Leadership, and Authentic Leadership A01_ROBB3859_14_SE_FM.indd 26 24/09/16 11:56 am Preface xxvii • New research incorporated in the following areas: Big Five Traits, Transactional and Transformational Leadership, Path–Goal Theory, Servant Leadership, and International Research on Charismatic Leadership and the Evaluation of Transformational Leadership • New features: Watch It [Leadership (TWZ Role Play)], Personal Inventory Assessments (Ethical Leadership Assessment), and Try It (Simulation: Leadership) Chapter 13: Power and Politics • New content: The General Dependence Postulate, Social Network Analysis, Sexual Harassment, Inter-Organizational Factors Contributing to Political Behavior, Interviews and Impression Management, Scarcity, and Nonsubstitutability • Newly revised sections: Learning Objectives and Individual Factors Contributing to Political Behavior • New research incorporated in the following areas: Impression Management, Performance Evaluations and Impression Management, Organizational Factors, and Contributing to Political Behavior • New features: Watch It (Power and Political Behavior), Personal Inventory Assessments (Gaining Power and Influence), and Try It (Simulation: Power #038; Politics) Chapter 14: Conflict and Negotiation • New content: Negotiating in a Social Context, Reputation and Relationships in Negotiations, and Third-Party Negotiations • Newly revised sections: Learning Objectives, A Definition of Conflict, Loci of Conflict, and Stage IV of the Conflict Process: Behavior, Personality Traits, and Gender Differences in Negotiations • New research incorporated in the following areas: Functional Outcomes, Preparation and Planning for Negotiation, and International Research on Personal Variables as Sources of Conflict and Cultural Influences on Negotiation • New features: Watch It (Gordon Law Group: Conflict and Negotiation) and Personal Inventory Assessments (Strategies for Handling Conflict) Chapter 15: Foundations of Organization Structure • New content: Implications of Organizational Structure for OB; Boundary Spanning; Types of Organizational Structures, including Functional, Divisional, Team, and Circular Structures; and Institutions and Strategy • Newly revised sections: Learning Objectives and Description of Organizational Structure • New research incorporated in the following areas: The Leaner Organization: Downsizing, Organizational Strategies and Structure, and International Research on Technology and Strategy • New features: Personal Inventory Assessments (Organizational Structure Assessment), Try It (Simulation: Organizational Structure), and Watch It (ZipCar: Organizational Structure) A01_ROBB3859_14_SE_FM.indd 27 24/09/16 11:56 am xxviii Preface Chapter 16: Organizational Culture • New content: The Ethical Dimensions of Culture, Culture and Sustainability, Culture and Innovation, Culture as an Asset, Strengthening Dysfunctions, Rivals, and Influencing an Organizational Culture • Newly revised sections: Description of Organizational Culture, Barriers to Acquisitions and Mergers, Ethical Culture, Positive Culture, Rewarding More Than Punishing, and Building on Employee Strengths • New research incorporated in the following areas: Organizational Socialization • New features: Try It (Simulation: Organizational Culture) and Personal Inventory Assessments (Organizational Structure Assessment) Chapter 17: Organizational Change and Stress Management • New content: Reactionary versus Planned Change; The Politics of Change; Action Research; Sensitivity Training, Managing the Change Paradox; Describing and Creating a Learning Organization; Organizational Change and Stress; Allostasis; Potential Sources of Stress at Work; Environmental, Personal, and Organizational Factors Leading to Stress; Stress Additivity; Perception and Stress; Job Experience and Stress; Personality Traits and Stress; Cultural Differences and Stress; and Wellness Programs • Newly revised sections: Description of Change, Forces for Change, Coercion as a Tactic to Overcome Resistance to Change, Demands and Resources, Social Support and Stress, Summary, and Implications for Managers • New research incorporated in the following areas: Resistance to Change, Developing Positive Relationships to Overcome Resistance to Change, Context and Innovation, Behavioral Symptoms of Stress, and International Research on Communication to Overcome Resistance to Change and on Idea Chions • New features: Try It (Simulation: Change), Watch It (East Haven Fire Department: Managing Stress), and Personal Inventory Assessments (Tolerance of Ambiguity Scale) INSTRUCTOR RESOURCES At Pearson’s Higher Ed catalog, https://www.pearsonhighered.com/sign-in.html, instructors can easily register to gain access to a variety of instructor resources available with this text in downloadable format. If assistance is needed, our dedicated technical support team is ready to help with the media supplements that accompany this text. Visit https:// support.pearson.com/getsupport for answers to frequently asked questions and toll-free user support phone numbers. The following supplements are available with this text: • • • • Instructor’s Resource Manual Test Bank TestGen® Computerized Test Bank PowerPoint Presentation This title is available as an eBook and can be purchased at most eBook retailers. A01_ROBB3859_14_SE_FM.indd 28 24/09/16 11:56 am ACKNOWLEDGMENTS We owe a debt of gratitude to all those at Pearson who have supported this text over the past 25 years and who have worked so hard on the development of this latest edition. On the editorial side, we want to thank Director of Portfolio Management Stephanie Wall, Portfolio Manager Kris Ellis-Levy, Managing Producer Ashley Santora, Content Producer Claudia Fernandes, and Editorial Assistant Hannah Lamarre. On the production side, we want to thank Moumita Majumdar and Revathi Viswanathan, Project Managers at Cenveo® Publisher Services. The authors are grateful for Lori Ehrman Tinkey of the University of Notre Dame for her invaluable assistance in manuscript editing and preparation. Thank you also to David Glerum, Ph.D., for his input. Last but not least, we would like to thank the marketing team for promoting the book to the market, and the sales staff who have been selling this book over its many editions. We appreciate the attention you’ve given this book. xxix A01_ROBB3859_14_SE_FM.indd 29 24/09/16 11:56 am ABOUT THE AUTHORS Stephen P. Robbins, Ph.D. University of Arizona Stephen P. Robbins is Professor Emeritus of Management at San Diego State University and the world’s best-selling textbook author in the areas of both management and organizational behavior. His books are used at more than a thousand U.S. colleges and universities, have been translated into 19 languages, and have adapted editions for Canada, Australia, South Africa, and India. Dr. Robbins is also the author of the best-selling books The Truth About Managing People, 2nd ed. (Financial Times/Prentice Hall, 2008) and Decide #038; Conquer (Financial Times/Prentice Hall, 2004). In his “other life,” Dr. Robbins actively participates in masters’ track competitions. Since turning 50 in 1993, he’s won 18 national chionships and 12 world titles, and set numerous U.S. and world age-group records at 60, 100, 200, and 400 meters. In 2005, Dr. Robbins was elected into the USA Masters’ Track #038; Field Hall of Fame. Timothy A. Judge, Ph.D. University of Illinois at Urbana-Chaign Timothy A. Judge is currently the Alutto Professor of Leadership at The Ohio State University and Visiting Professor, Division of Psychology #038; Language Sciences, University College London. He has held academic positions at the University of Notre Dame, University of Florida, University of Iowa, Cornell University, Charles University in the Czech Republic, Comenius University in Slovakia, and University of Illinois at UrbanaChaign. Dr. Judge’s primary research interests are in (1) personality, moods, and emotions; (2) job attitudes; (3) leadership and influence behaviors; and (4) careers (person–organization fit, career success). Dr. Judge has published more than 154 articles in these and other major topics in journals such as the Academy of Management Journal and the Journal of Applied Psychology. He is a fellow of several organizations, including the American Psychological Association and the Academy of Management. Among the many professional acknowledgments of his work, most recently Dr. Judge was awarded the Academy of Management Human Resources Division’s Scholarly Achievement Award for 2014. Dr. Judge is a co-author of Organizational Behavior, 17th ed., with Stephen P. Robbins, and Staffing Organizations, 8th ed., with Herbert G. Heneman III. He is married and has three children—a daughter who is a health care social worker, a daughter who is studying for a master’s degree, and a son in middle school. xxx A01_ROBB3859_14_SE_FM.indd 30 24/09/16 11:56 am PART 1 Understanding Yourself and Others 1 What Is Organizational Behavior? MyManagementLab ® Improve Your Grade! When you see this icon , visit mymanagementlab.com for activities that are applied, personalized, and offer immediate feedback. Learning Objectives After studying this chapter, you should be able to: 1. Define organizational behavior (referred to as OB throughout the text). 2. Show the value of systematic study to OB. 3. Identify the major behavioral science disciplines that contribute to OB. 4. Demonstrate why few absolutes apply to OB. 5. Identify managers’ challenges and opportunities in applying OB concepts. 6. Compare the three levels of analysis in this text’s OB model. Chapter Warm-up If your professor has chosen to assign this, go to the Assignments section of mymanagementlab.com to complete the chapter warm-up. A s you begin your study of this text, you might be wondering, “What is organizational behavior and why does it matter to me?” We get to the definition of organizational behavior, or OB, in a moment, but let’s begin with the end in mind—why OB matters, and what the study of OB offers you. First, a bit of history. Until the late 1980s, business school curricula emphasized the technical aspects of management, focusing on economics, accounting, finance, and quantitative techniques. Course work in human behavior and people skills received relatively 1 M01_ROBB3859_14_SE_C01.indd 1 19/09/16 3:58 PM 2 Part 1 • Understanding Yourself and Others less attention. Since then, however, business schools have realized the significant role interpersonal skills play in determining a manager’s effectiveness. In fact, a survey of over 2,100 CFOs across 20 industries indicated that a lack of interpersonal skills is the top reason why some employees fail to advance.1 One of the principal applications of OB is toward an improvement in interpersonal skills. Developing managers’ interpersonal skills helps organizations attract and keep high-performing employees, which is important since outstanding employees are always in short supply and are costly to replace. But the development of interpersonal skills is not the only reason OB matters. Secondly, from the organizational standpoint, incorporating OB principles can help transform a workplace from good to great, with a positive impact on the bottom line. Companies known as good places to work—such as Genentech, the Boston Consulting Group, Qualcomm, McKinsey #038; Company, Procter #038; Gamble, Facebook, and Southwest Airlines2—have been found to generate superior financial performance.3 Third, there are strong associations between the quality of workplace relationships and employee job satisfaction, stress, and turnover. For exle, one very large survey of hundreds of workplaces and more than 200,000 respondents showed that social relationships among coworkers and supervisors were strongly related to overall job satisfaction. Positive social relationships also were associated with lower stress at work and lower intentions to quit.4 Further research indicates that employees who relate to their managers with supportive dialogue and proactivity find that their ideas are endorsed more often, which improves workplace satisfaction.5 Fourth, increasing the OB element in organizations can foster social responsibility awareness. Accordingly, universities have begun to incorporate social entrepreneurship education into their curriculum in order to train future leaders to address social issues within their organizations.6 This is especially important because there is a growing need for understanding the means and outcomes of corporate social responsibility, known as CSR.7 We discuss CSR more fully in Chapter 3. We understand that in today’s competitive and demanding workplace, managers can’t succeed on their technical skills alone. They also have to exhibit good people skills. This text has been written to help both managers and potential managers develop those people skills with the knowledge that understanding human behavior provides. In so doing, we believe you’ll also obtain lasting skills and insight about yourself and others. Management and Organizational Behavior The roles of a manager—and the necessary skills needed to perform as one—are constantly evolving. More than ever, individuals are placed into management positions without management training or informed experience. According to a large-scale survey, more than 58 percent of managers reported they had not received any training and 25 percent admitted they were not ready to lead others when they were given the role.8 Added to that challenge, the demands of the job have increased: the average manager has seven direct reports (five was once the norm), and has less management time to spend with them than before.9 Considering that a Gallup poll found organizations chose the wrong candidate for management positions 82 percent of the time,10 we conclude that the more you can learn about people and how to manage them, the better prepared you will be to be that right candidate. OB will help you get there. M01_ROBB3859_14_SE_C01.indd 2 19/09/16 3:58 PM Chapter 1 • What Is Organizational Behavior? 3 Organizational Behavior (OB) Defined Organizational behavior (OB) is a field of study that investigates the impact individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness. That’s a mouthful, so let’s break it down. OB is a field of study, meaning that it is a distinct area of expertise with a common body of knowledge. What does it study? It studies three determinants of behavior within organizations: individuals, groups, and structure. In addition, OB applies the knowledge gained about individuals, groups, and the effect of structure on behavior in order to make organizations work more effectively. To sum up our definition, OB is the study of what people do in an organization and the way their behavior affects the organization’s performance. Because OB is concerned specifically with employment-related situations, it examines behavior in the context of job satisfaction, absenteeism, employment turnover, productivity, human performance, and management. Although debate exists about the relative importance of each, OB includes these core topics:11 • • • • • • • • organizational behavior A field of study that investigates the impact individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness. Motivation Leader behavior and power Interpersonal communication Group structure and processes Attitude development and perception Change processes Conflict and negotiation Work design Effective versus Successful Managerial Activities Now that we understand what OB is, we may begin to apply some concepts. Consider the important issue of effective management. What makes one manager more effective than another? To answer the question, Fred Luthans, a prominent OB researcher, and his associates looked at what managers do from a unique perspective.12 They asked, “Do managers who move up most quickly in an organization do the same activities and with the same emphasis as managers who do the best job?” You might think the answer is yes, but that’s not always the case. Luthans and his associates studied more than 450 managers. All engaged in four managerial activities: 1. Traditional management. Decision making, planning, and controlling. 2. Communication. Exchanging routine information and processing paperwork. 3. Human resources (HR) management. Motivating, disciplining, managing conflict, staffing, and training. 4. Networking. Socializing, politicking, and interacting with outsiders. The “average” manager spent 32 percent of his or her time in traditional management activities, 29 percent communicating, 20 percent in HR management activities, and 19 percent networking. However, the time and effort different individual managers spent M01_ROBB3859_14_SE_C01.indd 3 19/09/16 3:58 PM 4 Part 1 • Understanding Yourself and Others When you see this icon, Global OB issues are being discussed in the paragraph. on those activities varied a great deal. Among managers who were successful (defined in terms of speed of promotion within their organizations), networking made the largest relative contribution to success and HR management activities made the least relative contribution, which is the opposite of the average manager. Indeed, other studies in Australia, Israel, Italy, Japan, and the United States confirm the link between networking, social relationships, and success within an organization.13 However, Luthans and associates found that among effective managers (defined in terms of quantity and quality of their performance and the satisfaction and commitment of their employees), communication made the largest relative contribution and networking the least. This finding is more in line with the average manager, with the important exception of increased emphasis on communication. The connection between communication and effective managers is clear. Managers who explain their decisions and seek information from colleagues and employees—even if the information turns out to be negative—are the most effective.14 Watch It If your professor has assigned this, go to the Assignments section of mymanagementlab .com to complete the video exercise titled Herman Miller: Organizational Behavior. Complementing Intuition with Systematic Study systematic study Looking at relationships, attempting to attribute causes and effects, and drawing conclusions based on scientific evidence. evidence-based management (EBM) The basing of managerial decisions on the best available scientific evidence. intuition An instinctive feeling not necessarily supported by research. M01_ROBB3859_14_SE_C01.indd 4 Whether you’ve explicitly thought about it before or not, you’ve been “reading” people almost all your life by watching their actions and interpreting what you see, or by trying to predict what people might do under different conditions. The casual approach to reading others can often lead to erroneous predictions, but using a systematic approach can improve your accuracy. Underlying the systematic approach is the belief that behavior is not random. Rather, we can identify fundamental consistencies underlying the behavior of all individuals and modify them to reflect individual differences. These fundamental consistencies are very important. Why? Because they allow for predictability. Behavior is generally predictable, and the systematic study of behavior is a means to making reasonably accurate predictions. When we use the term systematic study, we mean looking at relationships, attempting to attribute causes and effects, and basing our conclusions on scientific evidence—that is, on data gathered under controlled conditions and measured, and interpreted, in a rigorous manner. Evidence-based management (EBM) complements systematic study by basing managerial decisions on the best available scientific evidence. For exle, we want doctors to make decisions about patient care based on the latest available evidence, and EBM argues that managers should do the same, thinking more scientifically about management problems. A manager might pose a question, search for the best available evidence, and apply the relevant information to the question or case at hand. You might wonder what manager would not base decisions on evidence, but the vast majority of management decisions are still made “on the fly,” with little to no systematic study of available evidence.15 Systematic study and EBM add to intuition, or those “gut feelings” about what makes others (and ourselves) “tick.” Of course, the things you have come to believe in an unsystematic way are not necessarily incorrect. Jack Welch (former CEO of General 19/09/16 3:58 PM Chapter 1 • What Is Organizational Behavior? 5 Electric) noted, “The trick, of course, is to know when to go with your gut.”16 But if we make all decisions with intuition or gut instinct, we’re likely working with incomplete information—like making an investment decision with only half the data about the potential for risk and reward. Big Data Data, the foundation of EBM, have been used to evaluate behavior since at least 1749, when the word “statistic” was coined to mean a “description of the state.”17 Statistics back then were used for purposes of governance, but since the data collection methods were clumsy and simplistic, so were the conclusions. “Big data”—the extensive use of statistical compilation and analysis—didn’t become possible until computers were sophisticated enough to both store and manipulate large amounts of information. The use of big data began with online retailers but has since permeated virtually every business. Current Usage No matter how many terabytes of data firms collect or from how many sources, the reasons for data analytics include: predicting events, from a book purchase to a spacesuit malfunction; detecting how much risk is incurred at any time, from the risk of a fire to that of a loan default; and preventing catastrophes large and small, from a plane crash to the overstocking of a product.18 With big data, U.S. defense contractor BAE Systems protects itself from cyber-attacks, San Francisco’s Bank of the West uses customer data to create tiered pricing systems, and London’s Graze.com analyzes customers’ preferences to select snack sles to send with their orders.19 New Trends The use of big data for understanding, helping, and managing people is relatively new but holds promise. In fact, research on 10,000 workers in China, Germany, India, the United Kingdom, and the United States indicated that employees expect the next transformation in the way people work will rely more on technological advancements than on any other factor, such as demographic changes.20 It is good news for the future of business that researchers, the media, and company leaders have identified the potential of data-driven management and decision making. A manager who uses data to define objectives, develop theories of causality, and test those theories can determine which employee activities are relevant to the objectives.21 Big data has implications for correcting management assumptions and increasing positive performance outcomes. Increasingly, it is applied toward making effective decisions (Chapter 6) and managing organizational change (Chapter 17). It is quite possible that the best use of big data in managing people will come from OB and psychology research where it might, for instance, even help employees with mental illnesses monitor and change their behavior.22 Limitations As technological capabilities for handling big data have increased, so have issues of privacy and appropriate application. This is particularly true when data collection includes surveillance instruments. For instance, an experiment in Brooklyn, New York, has been designed to improve the quality of life for residents, but the researchers will collect potentially intrusive data from infrared cameras, sensors, and smartphone Wi-Fi signals.23 Through similar methods of surveillance monitoring, a bank call center and a pharmaceutical company found that employees were more productive with more social interaction, so they changed their break time policies so more people took breaks M01_ROBB3859_14_SE_C01.indd 5 19/09/16 3:58 PM 6 Part 1 • Understanding Yourself and Others together. They then saw sales increase and turnover decrease. Bread Winners Café in Dallas, Texas, constantly monitors all employees in the restaurant through surveillance and uses that data to promote or discipline its servers.24 Privacy and application issues abound with these techniques, but abandoning them is not necessarily the fix. An understanding of deeper OB issues can help find the productive balance. These big data tactics and others might yield results—and research indicates that, in fact, electronic performance monitoring does increase task performance and citizenship behavior (helping behaviors towards others), at least in the short term. But critics point out that after Frederick Taylor introduced surveillance analytics in 1911 to increase productivity through monitoring and feedback controls, his management control techniques were surpassed by Alfred Sloan’s greater success with management outcomes, achieved by providing meaningful work to employees.25 We are not advising you to throw intuition out the window. In dealing with people, leaders often rely on hunches, and sometimes the outcomes are excellent. At other times, human tendencies get in the way. What we are advising is to use evidence as much as possible to inform your intuition and experience. The prudent use of big data, along with an understanding of human behavioral tendencies, can contribute to sound decision making and ease natural biases. That is the promise of OB. Disciplines That Contribute to the OB Field OB is an applied behavioral science built on contributions from a number of behavioral disciplines, mainly psychology and social psychology, sociology, and anthropology. Psychology’s contributions have been principally at the individual or micro-level of analysis, while the other disciplines have contributed to our understanding of macro concepts such as group processes and organization. Exhibit 1-1 is an overview of the major contributions to the study of OB. Psychology psychology The science that seeks to measure, explain, and sometimes change the behavior of humans and other animals. Psychology seeks to measure, explain, and sometimes change the behavior of humans and other animals. Contributors to the knowledge of OB are learning theorists, personality theorists, counseling psychologists, and, most important, industrial and organizational psychologists. Early industrial and organizational psychologists studied the problems of fatigue, boredom, and other working conditions that could impede efficient work performance. More recently, their contributions have expanded to include learning, perception, personality, emotions, training, leadership effectiveness, needs and motivational forces, job satisfaction, decision-making processes, performance appraisals, attitude measurement, employee-selection techniques, work design, and job stress. Social Psychology social psychology An area of psychology that blends concepts from psychology and sociology to focus on the influence of people on one another. M01_ROBB3859_14_SE_C01.indd 6 Social psychology, generally considered a branch of psychology, blends concepts from both psychology and sociology to focus on people’s influence on one another. One major study area is change—how to implement it and how to reduce barriers to its acceptance. Social psychologists also contribute to measuring, understanding, and changing attitudes; identifying communication patterns; and building trust. Finally, they have made important contributions to our study of group behavior, power, and conflict. 19/09/16 3:58 PM 7 Chapter 1 • What Is Organizational Behavior? Behavioral science Psychology Social psychology Contribution Learning Motivation Personality Emotions Perception Training Leadership effectiveness Job satisfaction Individual decision making Performance appraisal Attitude measurement Employee selection Work design Work stress Output Exhibit 1-1 Toward an OB Discipline Individual Behavioral change Attitude change Communication Group processes Group decision making Communication Power Conflict Intergroup behavior Sociology Unit of analysis Group Study of organizational behavior Formal organization theory Organizational technology Organizational change Organizational culture Comparative values Comparative attitudes Cross-cultural analysis Organization system Anthropology Organizational culture Organizational environment Power Sociology While psychology focuses on the individual, sociology studies people in relation to their social environment or culture. Sociologists have contributed to OB through their study of group behaviors in organizations, particularly formal and complex organizations. Perhaps most importantly, sociologists have studied organizational culture, formal organization theory and structure, organizational technology, communications, power, and conflict. sociology The study of people in relation to their social environment or culture. Anthropology Anthropology is the study of societies in order to learn about human beings and their activities. Anthropologists’ work on cultures and environments has helped us understand differences in fundamental values, attitudes, and behavior among people in different countries and within different organizations. Much of our current understanding of organizational culture, organizational climate, and differences among national cultures is a result of the work of anthropologists or those using their methods. anthropology The study of societies to learn about human beings and their activities. There are Few Absolutes in OB Laws in the physical sciences—chemistry, astronomy, physics—are consistent and apply in a wide range of situations. They allow scientists to generalize about the pull of gravity or to be confident about sending astronauts into space to repair satellites. Human beings are complex, and few, if any, simple and universal principles explain human behavior. Because we M01_ROBB3859_14_SE_C01.indd 7 19/09/16 3:58 PM 8 Part 1 • Understanding Yourself and Others contingency variables Situational factors or variables that moderate the relationship between two or more variables. are not alike, our ability to make simple, accurate, and sweeping generalizations about ourselves is limited. Two people often act very differently in the same situation, and the same person’s behavior changes in different situations. For instance, not everyone is motivated by money, and people may behave differently at a religious service than they do at a party. This doesn’t mean, of course, that we can’t offer reasonably accurate explanations of human behavior or make valid predictions. It does mean that OB concepts must reflect situational, or contingency, conditions. We can say x leads to y, but only under conditions specified in z—the contingency variables. The science of OB was developed by applying general concepts to a particular situation, person, or group. For exle, OB scholars would avoid stating that everyone likes complex and challenging work (a general concept). Why? Because not everyone wants a challenging job. Some people prefer routine over varied work, or simple over complex tasks. A job attractive to one person may be unattractive to another; its appeal is contingent on the person who holds it. Often, we find both general effects (money does have some ability to motivate most of us) and contingencies (some of us are more motivated by money than others, and some situations are more about money than others). We best understand OB when we realize how both (general effects and the contingencies that affect them) often guide behavior. Challenges and Opportunities for OB Understanding organizational behavior has never been more important for managers. Take a quick look at the dramatic changes in organizations. The typical employee is getting older; the workforce is becoming increasingly diverse; and global competition requires employees to become more flexible and cope with rapid change. As a result of these changes and others, employment options have adapted to include new opportunities for workers. Exhibit 1-2 details some of the types of options individuals may find offered to them by organizations or for which they would like to negotiate. Under each heading in the exhibit, you will find a grouping of options from which to choose—or combine. For instance, at one point in your career you may find yourself employed full time in an office in a localized, nonunion setting with a salary and bonus compensation package, while at another point you may wish to negotiate for a flextime, virtual position and choose to work from overseas for a combination of salary and extra paid time off. In short, today’s challenges bring opportunities for managers to use OB concepts. In this section, we review some—but not nearly all—of the critical developing issues confronting managers for which OB offers solutions or, at least, meaningful insights toward solutions. Continuing Globalization Organizations are no longer constrained by national borders. Samsung, the largest South Korean business conglomerate, sells most of its products to organizations in other countries; Burger King is owned by a Brazilian firm; and McDonald’s sells hamburgers in 118 countries on 6 continents. Even Apple—arguably the U.S. company with the strongest U.S. identity—employs twice as many workers outside the United States as it does inside the country. And all major automobile makers now manufacture cars outside their borders; Honda builds cars in Ohio, Ford in Brazil, Volkswagen in Mexico, and both Mercedes and BMW in the United States and South Africa. The world has become a global village. In the process, the manager’s job has changed. Effective managers anticipate and adapt their approaches to the global issues we discuss next. M01_ROBB3859_14_SE_C01.indd 8 19/09/16 3:58 PM 9 Chapter 1 • What Is Organizational Behavior? Categories of Employment Types of Employment Places of Employment Conditions of Employment Compensation for Employment Employed Full-time Anchored (office/cubicle) Local Salary Underemployed/ underutilized Part-time Floating (shared space) Expatriate Hourly Re-employed Flextime Virtual Short-term assignee Overtime Unemployed/jobless Job share Flexible Flexpatriate Bonus Work from home International business traveler Contract Entrepreneur Contingent Retired Independent contractor Visa employee Time off Job seeking Temporary Union/nonunion employee Benefits Furloughed Reduced hours Laid off Intern Exhibit 1-2 Employment Options Sources: J.R. Anderson Jr., et al., “Action Items: 42 Trends Affecting Benefits, Compensation, Training, Staffing and Technology,” HR Magazine (January 2013) p. 33; M. Dewhurst, B. Hancock, and D. Ellsworth, “Redesigning Knowledge Work,” Harvard Business Review (January-February 2013), 58–64; E. Frauenheim, “Creating a New Contingent Culture,“ Workforce Management (August 2012), 34–39; N. Koeppen, “State Job Aid Takes Pressure off Germany,” The Wall Street Journal (february 1, 2013), p. A8; and M. A. Shaffer, M. L. Kraimer, Y,-P. Chen, and M.C. Bolino, “Choices, Challenges, and Career Consequences of Global Work Experiences: A Review and Future Agenda,” Journal of Management (July 2012), 1282–1327. Working with People from Different Cultures In your own country or on foreign assignment, you’ll find yourself working with bosses, peers, and other employees born and raised in different cultures. What motivates you may not motivate them. Or your communication style may be straightforward and open, which others may find uncomfortable and threatening. To work effectively with people from different cultures, you need to understand how their culture and background have shaped them and how to adapt your management style to fit any differences. Adapting to Differing Cultural and Regulatory Norms To be effective, managers need to know the cultural norms of the work…
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