Organizational Behavior (5^th Ed.)

People, processes, and technology. These are the three major drivers of business achievement. The best leaders inherently understand that great companies start with great people. This is as true now as it was during the beginning of the industrial revolution, and understanding and staying current on the latest organizational behavior research and best practices paves the way for managerial success.

In this updated edition of Organizational Behavior, theory, new research and real-world case studies are combined in an engaging manner to blend together the critical concepts and skills needed to successfully manage others and build a strong organization across all levels of a company. Featuring an in-depth view of the process and practice of managing individuals, teams, and entire organizations, the text provides a solid foundation for students and future managers.

About the authors iii

Preface vii

Acknowledgments xv

Opening Case Study: “The Right Thing to Do Is Start with the Crew” The Case of Trader Joe’s xxv

Part 1 The Strategic Lens

1 A Strategic Approach to Organizational Behavior 1

Exploring Behavior in Action: Strategic Use of Human Capital: A Key Element of Success at P&G and The Container Store 1

The Strategic Importance of: Organizational Behavior 3

Basic Elements of Organizational Behavior 3

Importance of Using a Strategic Lens 4

Experiencing Organizational Behavior: Nick Johnson, Susan Williams, and Other Not-Ready-for- Primetime Managers 6

Foundations of a Strategic Approach to Organizational Behavior 7

Definition of an Organization 7

The Role of Human Capital in Creating Competitive Advantage 8

The Nature of Human Capital 8

The Concept of Competitive Advantage 9

Human Capital as a Source of Competitive Advantage 9

Overall Potential for Competitive Advantage 11

Managerial Advice: Leveraging Human Capital with Twitter, Workplace, and Other Social Networking Tools 12

Positive Organizational Behavior 13

High-Involvement Management 14

Key Characteristics of High-Involvement Management 14

Evidence for the Effectiveness of High-Involvement Management 17

Demands on Managers 17

Experiencing Organizational Behavior: Pixar: An Organization of Happy, Innovative People 19

Organization of the Book 20

What This Chapter Adds to Your Knowledge Portfolio 21

Back to the Knowledge Objectives 22

Key Terms 22

Human Resource Management Applications 22

Building Your Human Capital: Career Style Inventory 23

An Organizational Behavior Moment: All in a Day’s Work 26

Team Exercise: McDonald’s: A High-Involvement Organization? 27

Endnotes 28

2 Organizational Diversity 33

Exploring Behavior in Action: Diversity in Silicon Valley: An Example from Twitter 33

The Strategic Importance of: Organizational Diversity 34

Diversity Defined 36

Forces of Change 38

Changing Population Demographics 38

Increase in the Service Economy 40

The Global Economy 40

Requirements for Teamwork 40

Diversity Management and High-Involvement Organizations 41

Individual Outcomes 41

Group Outcomes 42

Organizational Outcomes 42

Societal and Moral Outcomes 43

Experiencing Organizational Behavior: Diversity at the Top 45

Roadblocks to Diversity 46

Prejudice and Discrimination 46

Stereotyping 47

Differences in Social Identity 50

Experiencing Organizational Behavior: Women, Work, and Stereotypes 52

Power Differentials 53

Poor Structural Integration 53

Communication Problems 55

Effectively Creating and Managing Diversity 55

Managerial Advice: Promoting a Positive Diversity Environment 57

The Strategic Lens 58

What This Chapter Adds to Your Knowledge Portfolio 59

Back to the Knowledge Objectives 59

Thinking about Ethics 60

Key Terms 60

Human Resource Management Applications 60

Building Your Human Capital: What’s Your DQ (Diversity Quotient)? 61

An Organizational Behavior Moment: Project ‘Blow Up’ 62

Team Exercise: What Is It Like to Be Different? 63

Endnotes 64

3 Organizational Behavior in a Global Context 69

Exploring Behavior in Action: McDonald’s Thinks Globally and Acts Locally 69

The Strategic Importance of: Organizational Behavior in a Global Context 71

Globalization and Institutions 71

Globalization 71

Managerial Advice: Multinational Corporations Achieving Globalization 73

Institutions 74

The Globalization Experience for Associates and Managers 75

Internationally Focused Jobs 76

Foreign Job Assignments 78

Experiencing Organizational Behavior: I Am a Triangle: The Difficulties of Repatriation Story 80

Foreign Nationals as Colleagues 82

Opportunities for International Participation 83

Multidomestic Firms 84

Global Firms 84

High-Involvement Management in the International Dimensions of National Culture 86

Experiencing Organizational Behavior: Managing Diverse Cultures 88

National Culture and High-Involvement Management 89

Information Sharing 89

Decision Power and Individual Autonomy 90

Decision Power and Self-Managing Teams 90

Ethics in the International Context 91

The Strategic Lens 94

What This Chapter Adds to Your Knowledge Portfolio 94

Back to the Knowledge Objectives 95

Thinking about Ethics 96

Key Terms 96

Human Resource Management Applications 96

Building Your Human Capital: Assessment of Openness for International Work 96

An Organizational Behavior Moment: Managing in a Foreign Land 98

Team Exercise: International Etiquette 98

Endnotes 99

Part 2 Individual Processes

4 Learning and Perception 105

Exploring Behavior in Action: The Strategic Importance of Learning and Perception 105

Fundamental Learning Principles 107

Operant Conditioning and Social Cognitive Theory 108

Contingencies of Reinforcement 108

Managerial Advice: Punishment: Creating a Climate of Fear 110

Schedules of Reinforcement 111

Social Learning and Cognition 113

Other Conditions for Learning 114

Training and Enhancing the Performance of Associates 115

OB Mod 116

Simulations 116

Learning from Failure 118

Experiencing Organizational Behavior: Why Training Doesn’t Always Work! 120

Perception 121

Perceptions of People 122

Self-Perception 126

Attributions of Causality 126

Experiencing Organizational Behavior: Great Bear Wilderness Crash 126

Internal–External Attribution 127

Attributions of Success and Failure 128

Task Perception 129

The Strategic Lens 129

What This Chapter Adds to Your Knowledge Portfolio 130

Back to the Knowledge Objectives 131

Thinking about Ethics 131

Key Terms 131

Human Resource Management Applications 131

Building Your Human Capital: Assessment of Approaches Used to Handle Difficult Learning Situations 132

An Organizational Behavior Moment: It’s Just a Matter of Timing 132

Team Exercise: Best Bet for Training 133

Endnotes 134

5 Personality, Intelligence, Attitudes, and Emotions 138

Exploring Behavior in Action: Personality Testing in the Hiring Process: I Know She’s Smart and Accomplished But Does She Have “Personality”? 138

The Strategic Importance of: Personality, Intelligence, Attitudes, and Emotions 140

Fundamentals of Personality 140

Determinants of Personality Development 141

The Big Five Personality Traits 142

The Big Five and High-Involvement Management 145

The Dark Triad 145

Experiencing Organizational Behavior: Narcissism in the CEO Suite and Oval Office 147

General Cognitive and Motivational Aspects of Personality 148

Some Cautionary and Concluding Remarks 151

Intelligence 151

Experiencing Organizational Behavior: Intelligence and Intelligence Testing in the National Football League 153

Attitudes 153

Attitude Formation 155

Two Important Attitudes in the Workplace 157

Managerial Advice: Job Satisfaction Remains Too Low! 158

Attitude Change 161

Emotions 163

Direct Effects of Emotions on Behavior 164

Emotional Labor 164

Emotional Intelligence 165

The Strategic Lens 167

What This Chapter Adds to Your Knowledge Portfolio 167

Back to the Knowledge Objectives 168

Thinking about Ethics 169

Key Terms 169

Human Resource Management Applications 169

Building Your Human Capital: Big Five Personality Assessment 169

An Organizational Behavior Moment: Whatever Is Necessary! 171

Team Exercise: Experiencing Emotional Labor 171

Endnotes 172

6 Work Motivation 179

Exploring Behavior in Action: Work Motivation at W.L. Gore & Associates 179

The Strategic Importance of: Work Motivation 181

What Is Motivation? 181

Content Theories of Motivation 182

Hierarchy of Needs Theory 182

Theory of Achievement, Affiliation, and Power 184

Two-Factor Theory 186

Managerial Advice: Managers over the Edge 187

Conclusions Regarding Content Theories 188

Process Theories of Motivation 189

Expectancy Theory 189

Equity Theory 191

Goal-Setting Theory 193

Experiencing Organizational Behavior: Making Visible Changes 196

Conclusions Regarding Process Theories 197

Motivating Associates: An Integration of Motivation Theories 198

Find Meaningful Individual Rewards 198

Tie Rewards to Performance 199

Experiencing Organizational Behavior: Tying Rewards to Performance at Microsoft 201

Redesign Jobs 202

Provide Feedback 203

Clarify Expectations and Goals 204

Putting Employee Motivation into Practice through Employee Engagement 204

What Organizations Are Doing to Promote Employee Engagement 205

The Strategic Lens 207

What This Chapter Adds to Your Knowledge Portfolio 208

Back to the Knowledge Objectives 209

Thinking about Ethics 209

Key Terms 209

Human Resource Management Applications 210

Building Your Human Capital: Assessing Your Needs 210

An Organizational Behavior Moment: The Motivation of a Rhodes scholar 211

Team Exercise: Workplace Needs and Gender 212

Endnotes 212

7 Stress and Well-Being 218

Exploring Behavior in Action: Stress Can Be Deadly 218

The Strategic Importance of: Workplace Stress 219

Workplace Stress Defined 220

Two Models of Workplace Stress 222

Demand–Control Model 222

Effort–Reward Imbalance Model 224

Organizational and Work-Related Stressors 225

Role Conflict 225

Managerial Advice: Restoring and Maintaining Work–Life Balance 226

Role Ambiguity 227

Work Overload 227

Occupation 228

Resource Inadequacy 228

Working Conditions 228

Management Style 228

Monitoring 229

Job Insecurity 229

Bullying and Incivility in the Workplace 229

Experiencing Organizational Behavior: Incivility on the Job: The Cost of Being Nasty 230

Individual Influences on Experiencing Stress 231

Type A versus Type B Personality 231

Self-Esteem 232

Hardiness 232

Gender 232

Individual and Organizational Consequences of Stress 233

Individual Consequences 233

Organizational Consequences 235

Managing Workplace Stress 235

Individual Stress Management 236

Organizational Stress Management 237

Experiencing Organizational Behavior: Incentives for Participating in Wellness Programs 238

The Strategic Lens 239

What This Chapter Adds to Your Knowledge Portfolio 240

Back to the Knowledge Objectives 240

Thinking about Ethics 241

Key Terms 241

Human Resource Management Applications 241

Building Your Human Capital: How Well Do You Handle Stress? 241

An Organizational Behavior Moment: Friend or Associate? 242

Team Exercise: Dealing with Stress 243

Endnotes 243

Part 3 Groups, Teams, and Social Processes

8 Leadership 250

Exploring Behavior in Action: Maria Yee and the Green Furniture Revolution 250

The Strategic Importance of: Leadership 252

The Nature of Leadership 252

Trait Theory of Leadership 253

Experiencing Organizational Behavior: The Merchant Prince 255

Behavioral Theories of Leadership 257

University of Michigan Studies 257

The Ohio State University Studies 258

Contingency Theories of Leadership 259

Fiedler’s Contingency Theory of Leadership Effectiveness 259

The Path–Goal Leadership Theory 262

Conclusions Regarding Contingency Theories 263

Transactional and Transformational Leadership 264

Managerial Advice: Ursula Burns, Chairwoman and CEO of Xerox 265

Experiencing Organizational Behavior: Effective Leadership. Authentic Leadership! 269

Additional Topics of Current Relevance 270

Leader–Member Exchange 270

Servant Leadership 271

Gender and Leadership 271

Global Differences in Leadership 273

The Strategic Lens 275

What This Chapter Adds to Your Knowledge Portfolio 275

Back to the Knowledge Objectives 276

Thinking about Ethics 277

Key Terms 277

Human Resource Management Applications 277

Building Your Human Capital: Are You a Transformational Leader? 277

An Organizational Behavior Moment: The Two Presidents 279

Team Exercise: Coping with People Problems 280

Endnotes 281

9 Communication 286

Exploring Behavior in Action: Misunderstandings and Dangerous Runway Incidents 286

The Strategic Importance of: Communication 288

The Communication Process 288

Interpersonal Communication 290

Formal versus Informal Communication 290

Communication Styles 291

Communication Media 292

Communication Technology 293

Nonverbal Communication 294

Managerial Advice: Surfing for Applicants 295

Organizational Communication 297

Communication Networks 297

Direction of Organizational Communication 299

Experiencing Organizational Behavior: Communication at J. Crew: Mickey Drexler 300

Barriers to Effective Communication 302

Individual Barriers 302

Experiencing Organizational Behavior: Adverse Events in the Hospital Operating Room 304

Organizational Barriers 305

Overcoming Communication Barriers 309

Encourage Proactive Individual Actions 309

Conduct Communication Audits 310

Improve Communication Climates 311

The Strategic Lens 311

What This Chapter Adds to Your Knowledge Portfolio 312

Back to the Knowledge Objectives 312

Thinking about Ethics 313

Key Terms 313

Human Resource Management Applications 313

Building Your Human Capital: Presentation Dos and Don’ts 314

An Organizational Behavior Moment:

Going North 315

Team Exercise: Communication Barriers 316

Endnotes 316

10 Decision Making by Individuals and Groups 321

Exploring Behavior in Action: Decision Outcomes: Billy Beane and the Oakland Athletics Baseball Club 321

The Strategic Importance of: Decision Making 322

Fundamentals of Decision Making 323

Basic Steps in Decision Making 323

Optimal versus Satisfactory Decisions 325

Individual Decision Making 326

Experiencing Organizational Behavior: Complex Decisions at Unilever: Large, Diverse and Socially Responsible 326

Decision-Making Styles 327

Managerial Advice: Nurturing Alternative Decision Styles 330

Degree of Acceptable Risk 331

Cognitive Biases 332

Moods and Emotions 333

Group Decision Making 335

Group Decision-Making Pitfalls 335

Group Decision-Making Techniques 338

Who Should Decide? Individual versus Group Decision Making 341

Associate Involvement in Managerial Decisions 341

Experiencing Organizational Behavior: The Vroom– Yetton Model and Military Decisions during the U.S. Civil War 343

Value of Individual versus Group Decision Making 344

The Strategic Lens 347

What This Chapter Adds to Your Knowledge Portfolio 347

Back to the Knowledge Objectives 348

Thinking about Ethics 349

Key Terms 349

Human Resource Management Applications 349

Building Your Human Capital: Decision Style Assessment 349

An Organizational Behavior Moment: Decision Making at a Nuclear Power Facility 350

Team Exercise: Group Decision Making in Practice 352

Endnotes 352

11 Groups and Teams 358

Exploring Behavior in Action: Teamwork at Starbucks 358

The Strategic Importance of: Groups and Teams 359

The Nature of Groups and Teams 360

Groups and Teams Defined 360

Informal and Formal Groups 361

Identity Groups 361

Virtual Teams 362

Functional Teams 363

Self-Managing Teams 363

Team Effectiveness 364

Knowledge Criteria 364

Experiencing Organizational Behavior: Teams at McKinsey & Company 365

Affective Criteria 366

Outcome—Acceptability of Team Outputs 366

Outcome—Team Viability for the Future 366

Is the Team Needed? 366

Factors Affecting Team Effectiveness 367

Team Composition 367

Team Structure 369

Team Processes 372

Experiencing Organizational Behavior: Backup at Cirque Du Soleil 373

Team Development 377

Managing for Effective Teams 378

Top Management Support 378

Support Systems 379

Managerial Advice: The Pros and Cons of Experiential Teambuilding 381

The Strategic Lens 382

What This Chapter Adds to Your Knowledge Portfolio 383

Back to the Knowledge Objectives 383

Thinking about Ethics 384

Key Terms 384

Human Resource Management Applications 384

Building Your Human Capital: Do You Have a Team? 384

An Organizational Behavior Moment: The New Quota 385

Team Exercise: Virtual Versus Real Teams 386

Endnotes 386

12 Conflict, Negotiation, Power, and Politics 392

Exploring Behavior in Action: The Green Revolution 392

The Strategic Importance of: Conflict, Negotiation, Power, and Politics 394

The Nature of Conflict 394

Dysfunctional and Functional Conflict 395

Types of Conflict 396

Causes of Dysfunctional Conflict within Organizations 397

Structural Factors 397

Experiencing Organizational Behavior: Avoiding Dysfunctional Conflict at Chemonics and the

Vancouver Aquarium 399

Communication 400

Leadership 400

Cognitive Factors 401

Individual Characteristics 401

History 403

Conflict Escalation and Outcomes 403

Conflict Escalation 403

Conflict Outcomes 404

Experiencing Organizational Behavior: Workplace Aggression 405

Responses to Conflict 406

Negotiation 407

Negotiation Strategies 408

The Formal Negotiation Process 408

Managerial Advice: A Costly Conflict Resolution: The Importance of Negotiation 410

Power 412

Bases of Individual Power 412

An Example of Power 413

Strategic Contingencies Model of Power 415

Organizational Politics 416

The Strategic Lens 418

What This Chapter Adds to Your Knowledge Portfolio 418

Back to the Knowledge Objectives 419

Thinking about Ethics 419

Key Terms 419

Human Resource Management Applications 420

Building Your Human Capital: Are You Ready to Manage with Power? 420

An Organizational Behavior Moment: The Making of The Brooklyn Bluebirds 420

Team Exercise: Managing Conflict 421

Endnotes 422

Part 4 The Organizational Context

13 Organizational Structure and Culture 427

Exploring Behavior in Action: Growth and Structure Provide an Integrated Portfolio of Services at FedEx 427

The Strategic Importance of: Organizational Structure and Culture 429

Fundamental Elements of Organizational Structure 430

Structural Characteristics 430

Structuring Characteristics 433

The Modern Organization 433

Factors Affecting Organizational Structure 434

The Role of Strategy 435

Experiencing Organizational Behavior: The IDEO Way: Adapting through Innovative Design 437

The Role of Environment 438

The Role of Technology 441

The Role of Organizational Size 443

Summary Comments on Structure 444

Experiencing Organizational Behavior: Google

Culture and High-Quality Associates Produce Innovation 444

Organizational Culture 445

Competing Values Model of Culture 447

Cultural Socialization 448

Cultural Audits 450

Subcultures 450

Managerial Advice: A Costly Culture 451

Person–Organization Fit 452

The Strategic Lens 454

What This Chapter Adds to Your Knowledge Portfolio 455

Back to the Knowledge Objectives 456

Thinking about Ethics 456

Key Terms 457

Human Resource Management Applications 457

Building Your Human Capital: An Assessment of Creativity 457

An Organizational Behavior Moment: How Effective Is Hillwood Medical Center? 459

Team Exercise: Words-in-Sentences Company 460

Endnotes 461

14 Organizational Change and Development 467

Exploring Behavior in Action: Onward and Upward at Starbucks 467

The Strategic Importance of: Organizational Change and Development 468

Pressures for Organizational Change 469

Internal Pressures for Change 470

External Pressures for Change 472

Managerial Advice: Social Pressures for “Green” Policies and Practices: The War against Carbon Emissions 475

Planned Change 477

Process of Planned Change 477

Experiencing Organizational Behavior: The Rapid Growth and Development of Chobani 479

Managerial Change Capabilities 480

Important Tactical Choices 481

Experiencing Organizational Behavior: Making Changes When Things Are Going Well: Instagram Versus Snapchat 484

Organization Development 485

The Basic OD Model 486

Organization Development Interventions 487

Organizational Learning 491

Organization Development across Cultures 491

The Strategic Lens 491

What This Chapter Adds to Your Knowledge

Portfolio 492

Back to the Knowledge Objectives 493

Thinking about Ethics 493

Key Terms 494

Human Resource Management Applications 494

Building Your Human Capital: An Assessment of Low Tolerance for Change 494

An Organizational Behavior Moment: Organization Development at KBTZ 495

Team Exercise: Identifying Change Pressures and Their Effects 497

Endnotes 497

Concluding Case Study: Transforming The Texas Plant 503

Part Ending Case Study I - Cooperating and Communicating across Cultures (online at www.wiley.com/college/hitt)

Part Ending Case Study II - Brussels and Bradshaw (Online at www.wiley.com/college/hitt)

Part Ending Case Study III - Bright and Dedicated: What More Do You Want? (online at www.wiley.com /college/hitt)

Part Ending Case Study IV - Anna Frisch At Aesch AG: Initiating Lateral Change (online at www.wiley.com /college/hitt)

Glossary 509

Organization index 517

Name index 519

Subject index 533