Organizational Behaviour

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Self-assessment library How much do I know about organizational behaviour? ..... Exam-style questions with answer guidance to prepare for exam success.
Organizational Behaviour Stephen P. Robbins San Diego State University

Timothy A. Judge University of Florida

Timothy T. Campbell University of Dubai

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Financial Times Prentice Hall is an imprint of

Harlow, England • London • New York • Boston • San Francisco • Toronto • Sydney • Singapore • Hong Kong Tokyo • Seoul • Taipei • New Delhi • Cape Town • Madrid • Mexico City • Amsterdam • Munich • Paris • Milan

Contents

Preface

XXI

Guided Tour

xxiii'

Acknowledgements

xxvi

Publisher's acknowledgements

xxvii

Chapter 1 What is organizational behaviour? The importance of interpersonal skills What managers do Management functions Management roles Management skills Effective versus successful managerial activities A review of the manager's job Enter organizational behaviour Complementing intuition with systematic study Disciplines that contribute to the OB field Psychology Social psychology

Sociology Anthropology There are few absolutes in OB Challenges and opportunities for OB Responding to globalisation Managing workforce diversity Improving quality and productivity Improving customer service Improving people skills Stimulating innovation and change Coping with 'temporariness' Working in networked organizations Helping employees balance work-life conflicts Creating a positive work environment Improving ethical behaviour Coming attractions: developing an OB model An overview The dependent variables The independent variables Toward a contingency OB model Global implications

3 4 4 4 6 6 7 7 8 10 10 10 11 11 12 13 13 14 15 16 17 17 17 18 18 18 19 20 20 20 23 24 25

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CONTENTS

Case incident 1 Case incident 2

Summary and implications for managers Questions for review Experiential exercise Ethical dilemma

26 27 27 28

A great place to work Rage and violence in the workplace

28 29

Self-assessment library How much do I know about organizational behaviour? Myth or Science? 'Preconceived notions versus substantive evidence' OB in the news Other disciplines make use of OB concepts Global Transfer pricing and international corporate deviance Point/Counterpoint In search of the quick fix

3 9 12 22 26

Chapter 2 Foundations of individual behaviour

Case incident 1 Case incident 2

Ability Intellectual abilities Physical abilities Biographical characteristics Age Gender Race Other biographical characteristics: tenure and religion Learning A definition of learning Theories of learning Shaping: a manageriaUool Global implications Intellectual abilities Biographical characteristics Learning

34 34 36 37 37 38 39 40 41 41 41 44 49 49 50 50

Summary and implications for managers Questions for review Experiential exercise Ethical dilemma

50 52 52 53

The Flynn Effect Professional sports: rewarding and punishing the same behaviour?

53 54

Self-assessment library What's my attitude toward older people?

34 36 40 44 45 51

Global The benefits of cultural intelligence OB in the news City banker alleges race discrimination Myth or Science? 'You can't teach an old dog new tricks' Self-assessment library How good am I at disciplining others? Point/Counterpoint All human behaviour is learned

Chapter 3 Attitudes and job satisfaction Attitudes What are the main components of attitudes?

59 59

CONTENTS Does behaviour always follow from attitudes? What are the major job attitudes? Job satisfaction Measuring job satisfaction

Case incident 1 Case incident 2

ix

How satisfied are people with their jobs? What causes job satisfaction? The impact of satisfied and dissatisfied employees on the workplace Global implications

60 62 66 66 67 67 69 73

Summary and implications for managers Questions for review Experiential exercise Ethical dilemma

73 75 75 75

Money isn't everything in life Extreme jobs

76 77

Self-assessment library How satisfied am I with my job? Global Chinese employees and organizational commitment Self-assessment library Am I engaged? OB in the news Job satisfaction key to happiness Myth or Science? 'Happy workers are productive workers' Point/Counterpoint Managers can create satisfied workers .

59 63 65 66 69 74

Chapter 4 Personality and values Personality W^hat is personality? The Myers-Briggs Type Indicator The Big Five personality model Other personality traits relevant to OB Values The importance of values Classifying values Contemporary work values Linking an individual's personality and values to the workplace Person-job fit Person-Organization fit Global implications Personality Values

Case incident 1 Case incident 2

84 84 86 86 89 93 93 93 94 96 96 96 97 97 97

Summary and implications for managers Questions for review Experiential exercise Ethical dilemma

101 102 102 103

The rise of the nice CEO? Style and substance have German and French leaders at odds

103 104

Self-assessment library Am I a narcissist? Myth or Science? 'Entrepreneurs are a breed apart' Global A global personality

84 92 92 96 101

OB in the news Values define Europe, not borders Point/Counterpoint Traits are powerful predictors of behaviaur

x

CONTENTS

Chapter 5 Perception and individual decision making

Case incident 1 Case incident 2

What is perception? Factors that influence perception Person perception: making judgements about others Attribution theory Frequently used shortcuts in judging others Specific applications of shortcuts in organizations The link between perception and individual decision making Decision making in organizations The rational model, bound rationality and intuition Common biases and errors in decision making Influences on decision making: individual differences and organizational constraints

Ill 111 112 112 113 116 116 117 117 119 122

Individual differences Organizational constraints What about ethics in decision making? Three ethical decision criteria Improving creativity in decision making Global implications

123 123 125 125 126 128

Summary and implications for managers Questions for review

129 131

Experiential exercise Ethical dilemma

131 131

Nestle: a baby killer? The worst business decisions?

132 133

Self-assessment library What are my gender role perceptions? Global Can negative perceptions dampen international business relations? Myth or Science? 'No one thinks they're biased' Self-assessment library Am I a deliberate decision maker?

110 114 120 122

OB in the news Football and the winner's curse? Self-assessment library How creative am I? Point/Counterpoint When in doubt, do!

122 127 130

Chapter 6 Motivation concepts Defining motivation Early theories of motivation Hierarchy of needs theory Theory X and Theory Y Two-factor theory McClelland's theory of needs Contemporary theories of motivation Cognitive evaluation theory Goal-setting theory Self-efficacy theory Reinforcement theory Equity theory Expectancy theory Integrating contemporary theories of motivation Global implications Caveat emptor. motivation theories are often culture bound

140 141 141 142 143 145 146 146 148 151 154 155 158 160 161 161

CONTENTS

Case incident 1 Case incident 2

xi

Summary and implications for managers Questions for review Experiential exercise Ethical dilemma

162 164 164 164

Gender differences in performance motivation Office bullying

165 166

Self-assessment library How confident am I in my abilities to succeed? Myth or Science? 'Women are more motivated to get along, and men are more motivated to get ahead' OB in the news Jobs that offer the 'feel good' factor Global How managers evaluate their employees depends on culture Self-assessment library What are my course performance goals? Point/Counterpoint Failure motivates!

140 142 146 148 150 163

Chapter 7 Motivation: from concepts to applications

Case incident 1 Case incident 2

Motivating by job design: the job characteristics model The job characteristics model How can jobs be redesigned? Alternative work arrangements Ability and opportunity Employee involvement Examples of employee involvement programmes Linking employee involvement programmes and motivation theories Using rewards to motivate employees What to pay: establishing a pay structure How'to pay: rewarding individual employees through variable-pay programmes Flexible benefits: developing a benefits package Intrinsic rewards: employee recognition programmes Global implications -

173 173 175 177 180 180 181 182 182 183 183 188 188 190

Summary and implications for managers Questions for review Experiential exercise Ethical dilemma

191 192 193 193

The most boring job in the world? A blueprint for Europe

194 194

Self-assessment library What's my job's motivating potential? Myth or Science? 'Everyone wants a challenging job' OB in the news Most UK employees say green benefits would increase their loyalty to employers Global Cultural diffrences in job characteristics and job satisfaction Point/Counterpoint Praise motivates

173 176 187 189 192

Chapter 8 Emotions and moods What are emotions-and moods? The basic emotions

202 203

xii

CONTENTS The basic moods: positive and negative affect The function of emotions Sources of emotions and moods Emotional labour Affective events theory Emotional intelligence The case for El The case against El OB applications of emotions and moods

Selection Decision making Creativity Motivation Leadership Negotiation Customer service Job attitudes Deviant workplace behaviours How managers can influence moods Global issues

Case incident 1 Case incident 2

204 205 206 210 212 213 213 214 215 216 216 216 216 217 217 217 218 218 218 219

Summary and implications for managers Questions for review Experiential exercise Ethical dilemma

220 221 221 221

The upside of anger?

222 222

Abusive customers cause emotions to run high Self-assessment library How are you feeling right now? Self-assessment library What's my affect intensity? Myth or Science? 'People can't accurately forecast their own emotions' Global Emotional recognition: universal or culture-specific? Self-assessment library What's my emotional intelligence score? OB in the news Crying at work Point/Counterpoint The costs and benefits of organizational display rules

202 207 209 210 215 218 220

Chapter 9 Foundations of group behaviour Defining and classifying groups Stages of group development The five-stage model An alternative for temporary groups with deadlines Group properties: roles, norms, status, size and cohesiveness Group property 1: roles Group properties 2 and 3: norms and status Status Group property 4: size Group property 5: cohesiveness Group decision making Groups versus the individual Groupthink and groupshift Group decision-making techniques" Global implications

230 231 231 233 234 234 236 241 242 244 245 245 246 248 250

CONTENTS

Case incident 1 Case incident 2

xiii

Summary and implications for managers Questions for review Experiential exercise Ethical dilemma

251 253 253 255

Role conflict among telephone service employees The dangers of groupthink

255 256

Self-assessment library Do I have a negative attitude toward working in groups? Self-assessment library Do I trust others? Global Group cohesiveness across cultures Myth or Science? 'Are two heads better than one?' OB in the news Groupthink for an Enron jury? Point/Counterpoint All jobs should be designed around groups

230 236 244 246 247 252

Chapter 10 Understanding work teams Why have teams become so popular? Differences between groups and teams Types of teams Problem-solving teams Self-managed work teams Cross-functional teams Virtual teams Creating effective teams Context: what factors determine whether teams are successful Team composition ; Work design Process Turning individuals into team players Beware! Teams aren't always the answer Global implications ii

Summary and implications for managers

Case incident 1 Case incident 2

Questions for review Experiential exercise Ethical dilemma Volvo Cars Ghent: A self-managing team model Team building: sociable climbing Self-assessment library How good am I at building and leading a team? Global Global virtual teams OB in the news Surgical teams lack teamwork Myth or Science? 'Old teams can't learn new tricks' Self-assessment library What's my team efficacy? Point/Counterpoint Sports teams are good models for workplace teams

262 262 263 263 264 265 265 266 267 268 273 273 276 277 277 278 280 280 280 281 281 262 266 268 273 275 279

Chapter 11 Communication Functions of communication The communication process

288 290

xiv

CONTENTS Direction of communication Downward communication Upward communication Lateral communication Interpersonal communication Oral communication Written communication Nonverbal communication Organizational communication Formal small-group networks The grapevine Electronic communications Knowledge management Choice of communication channel Barriers to effective communication Filtering Selective perception Information overload Emotions Language Communication apprehension Gender differences Global implications

Case incident 1 Case incident 2

291 291 291 292 292 292 293 293 295 295 296 296 300 301 302 302 302 303 303 303 304 304 305

Summary and implications for managers Questions for review Experiential exercise Ethical dilemma

307 309 309 309

Communicating at Go Fly

310 310

A common language? Self-assessment library What's my face-to-face communication style? Myth or Science? 'People are good at catching liars at work' OB in the news Abusive language in the workplace can be costly Global Lost in translation? Self-assessment library How good are my listening skills? Point/Counterpoint Keep it a secret

288 293 300 305 307 308

Chapter 12 Basic approaches to leadership What is leadership? Trait theories Behavioural theories Ohio State studies University of Michigan studies Summary of trait theories and behavioural theories Contingency theories: Fiedler model and situational leadership theory Fiedler model Hersey and Blanchard's situational theory Path-goal theory Summary of contingency theories Leader-member exchange (LMX) theory Decision theory: Vroom and Yetton's leader-participation model

316 317 319 319 320 321 321 322 324 325 327 327 328

CONTENTS

Case incident 1 Case incident 2

xv

Leadership across Europe Global implications

329 330

Summary and implications for managers Questions for review Experiential exercise Ethical dilemma

331 333 333 333

Promotion almost as stressful as divorce Who makes the best leaders?

334 334

Self-assessment library What's my leadership style? OB in the news Good leaders in short supply Myth or Science? 'You need to be popular to be an effective leader' Self-assessment library What's my LPC score? Global Cultivating and international perspective: a necessity for leaders Point/Counterpoint Leaders are bom, not made

316 318 318 322 329 332

Chapter 13 Contemporary issues in leadership Inspirational approaches to leadership Charismatic leadership Transformational leadership Authentic leadership: ethics and trust are the foundation of leadership What is authentic leadership? Ethics and leadership What is trust? Trust and leadership Three types of trust Basic principles of trust Contemporary leadership roles Mentoring Self-leadership Online leadership Challenges to the leadership construct Leadership as an attribution Substitutes for and neutralisers of leadership Finding and creating effective leaders Selecting leaders Training leaders Global implications

Case incident 1 Case incident 2

341 341 345 348 348 349 349 350 351 353 353 354 355 355 356 357 358 359 359 360 360

Summary and implications for managers Questions for review Experiential exercise Ethical dilemma

361 362 362 363

An interview with Maurice Levy Successful leadership: how would you know?

363 365

Self-assessment library How charismatic am I? Self-assessment library Am I an ethical leader? Myth or Science? 'Men make better leaders than women' Global Cultural variation in charismatic attributions OB in the news Who wants to be a CEO millionaire Point/Counterpoint Keep leaders on a short leash

341 349 355 357 358 361

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CONTENTS

Chapter 14 Power and politics A definition of power Contrasting leadership and power Bases of power

The reality of politics Causes and consequences of political behaviour Factors contributing to political behaviour How do people respond to organizational politics? Impression management The ethics of behaving politically Global implications

372 373 373 373 374 375 376 376 376 377 379 380 380 382 382 385 387 389 389

Summary and implications for managers Questions for review Experiential exercise Ethical dilemma

390 392 392 393

'I don't want to fight anymore' The politics of backstabbing

393 394

Self-assessment library Is my workplace political? Global Influence tactics in China Myth or Science? 'Power breeds contempt' Self-assessment library How good am I at playing politics? OB in the news Who is the 'real' Bernie Madoff? Point/Counterpoint Managing impressions is unethical

372 379 382 386 388 391

Formal power Personal power Which bases of power are most effective? Dependency: the key to power The general dependency postulate What creates dependency? Power tactics Politics: power in action Definition of organizational

Case incident 1 Case incident 2

politics

Chapter 15 Conflict and negotiation A definition of conflict Transitions in conflict thought The traditional view of conflict The human relations view of conflict The interactionist view of conflict The conflict process Stage Stage Stage Stage

I: Potential opposition or incompatibility II: Cognition and personalisation III: Intentions IV: Behaviour

Stage V: Outcomes Negotiation Bargaining strategies The negotiation process

400 400 401 401 401 402 402 404 404 406 406 410 410 413

CONTENTS

Case incident 1 Case incident 2

xvii

Individual differences in negotiation effectiveness Third-party negotiations Global implications

414 417 418

Summary and implications for managers Questions for review Experiential exercise Ethical dilemma

419 421 422 422

Dealing with conflict The complexities of negotiation

423 424

Self-assessment library What's my preferred conflict-handling style? Self-assessment library What's my negotiating style? Global Negotiating across cultures OB in the news All in a good cause Point/Counterpoint Conflict benefits organizations

400 416 416 417 421

Chapter 16 Foundations of organization structure What is organizational structure? Work specialisation Departmentalisation Chain of command Span of control Centralisation and decentralisation Formalisation Common organizational designs The simple structure The bureaucracy The matrix structure New design options The virtual organization The boundaryless organization Why do structures differ? Strategy Organization size Technology Environment Organizational designs and employee behaviour Global implications

Case incident 1 Case incident 2

429 429 431 432 432 433 434 435 435 436 437 439 439 441 441 442 443 443 444 446 447

Summary and implications for managers Questions for review Experiential exercise Ethical dilemma

448 450 450 450

New demands on managers and organizations How have organizational structures changed?

451 451

Self-assessment library Do I like bureaucracy? Self-assessment library How willing am I to delegate? OB in the news Siemens's simple structure - not

429 434 434 437 445 449

Global Structural considerations in multinationals Myth or Science? 'Hierarchies are a thing of the past' Point/Counterpoint Downsizing improves organizational performance

xviii

CONTENTS

Chapter 17 Organizational culture Institutionalisation: a forerunner of culture What is organizational culture? A definition of organizational culture Culture is a descriptive term Do organizations have uniform cultures? Types of organizational culture Strong versus weak cultures Culture versus formalisation What do cultures do? Culture's functions Culture as a liability Creating and sustaining culture How a culture begins Keeping a culture alive Summary: how cultures form How employees learn culture Stories

Rituals Material symbols Language Creating an ethical organizational culture Creating a positive organizational culture Spirituality and organizational culture What is spirituality? Why spirituality now? Characteristics of a spiritual organization Criticisms of spirituality Global implications

Case incident 1 Case incident 2

456 457 457 458 459 459 460 461 462 462 462 464 464 464 468 469 469 469 469 469 470 471 473 473 473 474 475 475

Summary and implications for managers Questions for review Experiential exercise Ethical dilemma

476 478 478 479

An odd couple? P&G and Google combine cultures

479 480

Self-assessment library What's the right organizational culture for me? Global A good organizational culture knows no boundaries Myth or Science? 'People socialise themselves' OB in the news Change jobs, and you may be in for a culture shock Self-assessment library How spiritual am I? Point/Counterpoint Organizational cultures can't be changed

456 461 463 470 474 477

Chapter 18 Human resource policies and practices Selection practices How the selection process works Initial selection Substantive selection Contingent selection

486 486 487 489 491

CONTENTS xix

Case incident 1 Case incident 2

Training and development programmes Types of training Training methods Individualising formal training to fit the employee's learning style Evaluating effectiveness Performance evaluation Purposes of performance evaluation What do we evaluate? Who should do the evaluating? Methods of performance evaluation Suggestions for improving performance evaluations Providing performance feedback Managing diversity in organizations Work-life conflicts Diversity training Human resource policies and practices in Europe Global implications

492 492 495 495 496 496 496 497 497 498 500 501 502 503 504 504 505

Summary and implications for managers Questions for review Experiential exercise Ethical dilemma

506 507 508 508

Innovative HRM at Virgin Mobile UK UBS ordered to pay €20 million for sex discrimination

508 509

Self-assessment library How much do I know about human resource management (HRM)? 486 Myth or Science? 'It's first impressions that count' 491 Global Training across cultures 494 OB in the news 'Job review in 140 keystrokes' 500 Self-assessment library How good am I at giving performance feedback? 502 Point/Counterpoint Teleworking makes good business sense 507

Chapter 19 Organizational change and stress management Forces for change Planned change Resistance to change Overcoming resistance to change The politics of change Approaches to managing organizational change Lewin's three-step model Kotter's eight-step plan for implementing change Action research Organizational development Creating a culture for change Stimulating a culture of innovation Creating a learning organization Work stress and its management What is stress? Potential sources of stress Individual differences Consequences of stress Managing stress Global implications

516 518 519 520 522 523 523 524 525 526 531 531 532 533 533 534 536 537 538 540

xx

CONTENTS

Case incident 1 Case incident 2

Summary and implications for managers Questions for review Experiential exercise Ethical dilemma

541 542 543 543

Innovating innovation Creating a learning organization at Tesco

544 544

Self-assessment library How well do I respond to turbulent change? OB in the news Women, holograms and migrants to dominate in workplace of 2028 Myth or Science? 'Change is easierwhen you are in a crisis' Global Appreciative inquiry helps resolve two global firms' differences Myth or Science? 'Meetings stress people out' Self-assessment library How stressful is my life? Point/Counterpoint Managing change is an episodic activity

516 518 522 529 535 537 542

Glossary

549

Indexes

563

Supporting resources Visitwww.pearsoned.co.uk/robbins to find valuable online resources Companion Website for students: • • • •

Exam-style questions with answer guidance to prepare for exam success. Multiple-choice quizzes on the main topics in organizational behaviour. Flashcards to help you revise. Online glossary for quick reference to key terms in organizational behaviour.

For instructors • Complete, downloadable Instructor's Manual • PowerPoint slides that can be downloaded and used for presentations • Testbank of question material For more information please contact your local Pearson Education sales representative or visit www.pearsoned.co.uk/robbins