I 0 1 ItTII i : i * I T I 0 N

MANAGINGORGANIZATIONAL

BEHAVIOR

\

!. SU11RMIRI10RVJR.

I \MI S (,.KI Mi \ i ii i i n \ \ n

K I ( I I \ R I ) V OS|;ft m i "1 I I iiiv i n

\ •

MTMWik nilllllMUt UUNBANL 10K0M0 \

CONTENTS

P A R T O N E " INTRODUCTION

C H A P T E R 1 " ORGANIZATIONAL BEHAVIOR AND THE MANAGERFoundations of Organizational Behavior (OB) 7

Historical Foundations of OB 7

Scientific Foundations of OB 8

The Organization of This Book 9

Learning About Organizational Behavior 11

Experiential Learning 11

Life-Long Learning 12

The Nature of Organizations 12

Why Do Organizations Exist? 12

Ingredients of Organizations 13

Organizations as Open Systems 14

Synergy in Organizations 15

Managers in Organizations 16

What Is an Effective Manager? 16

Four Functions of Management 16

The Manager's Challenge 19

The Manager's Changing Environment 19

Focus on Productivity 20

The Global Economy 21

Organizational Transitions 22

Developments in Information Technologies 23

New Ways of Organizing 24

Changing Demographics and Work Force Diversity 24

Human Rights in the Workplace 26

x i u

xiv • Contents

Managerial Ethics and Quality of Work Life 27

Ethical Managerial Behavior 27

Corporate Social Responsibility 28

Work and the Quality of Life 30

PHOTO ESSAYSSkills Perspective HYATT HOTELS 18International Perspective McDONALD'S 22Ethical Perspective THE BODY SHOP 29

EXERCISE My Best Manager/My Best Job 33

CASE Productivity and Improvement at a British Plant 34

C H A P T E R 2 37MANAGERIAL BEHAVIOR AND PERFORMANCEWork and the Psychological Contract 39

What Is a Psychological Contract? 39

The Inducements-Contributions Balance 39

The Nature of Managerial Work 41

Managerial Roles and Activities 42

Managerial Networks 44

Managerial Skills and Competencies 45

Perception and Managerial Behavior 48

What Is Perception? 48

Factors Influencing Perceptions 49

Common Perceptual Distortions 50

Perception, Attribution, and Performance 54

Attribution Error and the Self-Serving Bias 54

Managing the Perception and Attribution Processes 55

Job Satisfaction 55

Measuring Job Satisfaction 56

Job Satisfaction Trends and Issues 56

Job Satisfaction and Performance 58

Job Satisfaction and the Decision to Belong 58

Job Satisfaction and the Decision to Perform 59

PHOTO ESSAYSSkills Perspective HALLMARK 47International Perspective SAS 53Ethical Perspective CELESTIAL SEASONINGS 57

Contents ^ XV

[> EXERCISE Personal Managerial Skills 64

CASE Asian and American CEOS: Are They Different? 65

C H A P T E R 3 " INTERNATIONAL DIMENSIONS OF 69ORGANIZATIONAL BEHAVIOR

Management and the International Imperative 71

Implications of a Global Economy 71

Emphasis on International Business 72

Changing Employment Patterns 73

People at Work: International Perspectives 74

Multinational Employers 74

Multi-Cultural Work Forces 76

Expatriate Managers and Workers 77

What is Culture 79

Popular Dimensions of Culture 79

Values and National Cultures 81

Dealing with Cultural Diversity 83

Understanding Our Own Culture 84

Developing Cross-Cultural Sensitivity 84

Comparative Management and Organizational Practices 86

Communication in an International Environment 86

Employee Motivation Across Cultures 87

Leadership and Supervision Across Cultures 87

Organizational Structures for International Operations 88

A Global View on Learning About Organizational Behavior 91

Management Lessons from Abroad 91

A Special Look at Japanese Management 92

PHOTO ESSAYSSkills Perspective PEPSICO 76

International Perspective TOYS 'H' US 85

Ethical Perspective CORNING 89

[/ tXLKLlSt Cross Cultural Awareness 96

CAoL American Workers and Japanese Employers 97

xvi • Contents

PART TWO • MANAGING INDIVIDUALS IN ORGANIZATIONS 101CHAPTER 4 BASIC ATTRIBUTES OF INDIVIDUALS 103

Individual Performance Factors 104

Individual Attributes 105

Work Effort 106

"Organizational Support 106

A Manager's Viewpoint on Work Performance 107

Demographic Differences Among Individuals 108

The Special Case of Stereotypes 108

A Final Note on Demographics 109

Competency Differences Among Individuals 109

Values and Attitudes 112

Values 112

Attitudes 115

Personality 118

Personality Theories and Personality Development 118

Locus of Control 120

Authoritarianism/Dogmatism 120

Problem-Solving Style 121

Machiavellianism 123

Type A and Type B Behavior 123

Managing Individual Differences 124

PHOTO ESSAYSSkills Perspective L. L. BEAN 111

International Perspective DU PONT 113

Ethical Perspective WALGREENS 125

EXERCISE Alligator River Story 129CASE Reverse Discrimination 130

CHAPTER 5 MOTIVATION THEORIESContent and Process Theories 134

Maslow's Hierarchy of Needs Theory 135

Aldefer's ERG Theory 136

McClelland's Acquired Needs Theory 136

Three Types of Acquired Needs 137

The Research 138

133

Contents M xvii

Herzberg's Two-Factor Theory 139

Dissatisfiers or Hygiene Factors 139

Satisfiers or Motivator Factors 141

Research and Practical Implications 141

Questions and Answers on the Content Theories 142

Equity Theory 143 ,

Resolving Felt Inequities 144

Managing the Equity Dynamic 145

Expectancy Theory 146

The Theory 146

Managerial Applications 149

The Research 150

An Integrated Model of Motivation 150

PHOTO ESSAYSSkills Perspective MARY KAY COSMETICS 137

International Perspective COLGATE-PALMOLIVE 144

Ethical Perspective WAL MART 144

LXLRCIoL Essentials of Motivation 155

CASE Perfect Pizzeria 155

C H A P T E R 6 " LEARNING, REINFORCEMENT, AND EXTRINSIC REWARDS 159Learning 160

Classical Conditioning 161

Operant Conditioning 161

Cognitive Learning 162

Social Learning 162

Reinforcement 163

Reinforcement and Rewards 163

Reinforcement Strategies 164

Positive Reinforcement 166

Examples of Positive Reinforcement 167

Scheduling Positive Reinforcement 168

Guidelines for Positive Reinforcement 170

Extinction 170

A Case of Extinction 170

Extinction and Positive Reinforcement 171

xviii • Contents

Punishment 171Problems with the Punishment Strategy 172

A Case of Punishment 172

Punishment and Positive Reinforcement 173

Guidelines for Administering Punishment 173

Reinforcement Perspectives: Research and Ethical Issues 173

Managing Pay as an Extrinsic Reward 175

Multiple Meanings of Pay 175

Merit Pay 176

Creative Pay Practices 177

PHOTO ESSAYSSkills Perspective HILTON HOTEL 165

International Perspective CITICORP 169

Ethical Perspective BEN & JERRY'S 174

[/ EXERCISE Annual Pay Raises 183

CASL Highview Stores 184

C H A P T E R 7 JOB DESIGN, GOAL-SETTING, AND WORK SCHEDULINGIntrinsic Work Rewards 189

Job Design in Theory 189

Job Design in Practice 190Job Simplification 191

Job Enlargement and Job Rotation 191

Job Enrichment 192

A Continuum of Job Design Strategies 193

A Diagnostic Approach to Job Enrichment 193

The Theory 194

The Research 196

Implementing the Diagnostic Approach 197

Questions and Answers on Job Enrichment 199

Goal Setting 201

Goal Setting Theory 201

Goal Setting and MBO 203

Alternative Work Arrangements 205

The Compressed Work Week 205

Flexible Working Hours 206

Job-Sharing 207

Part-Time Work 208

Telecommuting 209

187

Contents 4 xix

PHOTO ESSAYSSkills Perspective LAND'S END 195International Perspective FEDERAL EXPRESS 202Ethical Perspective JAMES RIVER 207

EXERCISE Setting Work Goals'

CASE Lechmere, Inc.

212

213

PART T H R E E " MANAGING GROUPS IN ORGANIZATIONS 215CHAPTER 8 • BASIC ATTRIBUTES OF A GROUP 217The Usefulness of Groups 219

Groups and Task Performance 219

Groups and Individual Needs 220

Types of Groups in Organizations 221

Work Groups 221

Formal and Informal Groups 222

Psychological Groups 223

Group Effectiveness 224

What Is an Effective Group? 224

Groups as Open Systems 224

Input Foundations of Group Effectiveness 225

Required and Emergent Behaviors 232

Activities, Interactions, and Sentiments 234

Directions in Work Group Designs 234

Self-Managing Work Teams 235

Quality Circles 236

Worker Involvement Groups 238

PHOTO ESSAYS -Skills Perspective McDONNELL DOUGLAS 227International Perspective IBM 232Ethical Prospective AT&T 237

[/ EXERCISE Interpersonal Relations in Groups 242

CASE: Where Teamwork Is More Than Just Talk 245

XX • Contents

CHAPTER 9 GROUP AND INTERGROUP DYNAMICSTeam Building and Group Development 251

The Team-Building Process 251

Stages of Group Development 252

Individual Entry to Groups 254

Individual Problems upon Entering Groups 255

Clarifying Membership Expectations 256

Group Norms and Cohesiveness 257

The Nature of Group Norms 258

Group Cohesiveness 260

Roles and Communication Patterns in Groups 262

Group Task and Maintenance Roles 262

Group Communication Networks 263

Decision Making in Groups 265

How Groups Make Decisions 265

Assets and Liabilities of Group Decision Making 266

"Groupthink" 268

Improving Group Decision Making 270

Intergroup Relations 272

Factors Affecting Intergroup Relations 273

Dynamics of Intergroup Competition 275

249

PHOTOInternational Perspective TOYOTA 255

Skills Perspective FORD 269

Ethical Perspective SOUTHWEST AIRLINES 274

\/ EXERCISE Identifying Group Norms 279LAoL The Case of the Changing Cage 280

P A R T F O U R " MANAGING ORGANIZATIONS 285CHAPTER 10 BASIC ATTRIBUTES OF ORGANIZATIONS

Organizational Goals 288

Societal Contributions of Organizations 289

Systems, Goals, and Organizational Survival 290

Formal Structures of Organizations 291

Vertical Specialization 292

Chain of Command and Span of Control 292

287

Contents 4 xxi

Line and Staff Units 294

Managerial Techniques 295

Control 296

Rules, Policies, and Procedures 297

Formalization and Standardization 298

Centralization and Decentralization 299

Horizontal Specialization 299

Departmentation by Function 300

Departmentation by Division 301

Departmentation by Matrix 303

Mixed Forms of Departmentation 305

Coordination 306

PHOTO ESSAYSSkills Perspective NUCOR 293

Ethical Perspective AICPA 298

International Perspective V.F. CORPORATION 305

EXERCISE Organizational Analysis 311CASE The Middle States Manufacturing Case 312

CHAPTER 11 • ORGANIZATIONAL DESIGNDesigns for Smaller Organizations 316

The Bureaucracy 317

Mechanistic and Organic Organizational Designs 318

Mechanistic Designs and the Machine Bureaucracy 319

Organic Designs and the Professional Bureaucracy 319

Divisionalized Organizations 320

The Conglomerate 321

Technology and Organizational Design 322

Technology 322

Where Technology Dominates: The Adhocracy 324

Developments in High Technology: Strategic Alliances 324

Environment and Organizational Design 326

The General and Specific Environment 326

Environmental Complexity 326

Balancing Environmental and Technological Demands 327

Strategy and Organizational Design 328

Types of Strategies 328

Matching Strategy and Organizational Design 329

315

xxi i • Contents

PHOTOEthical Perspective GOODYEAR 321International Perspective HEWLETT-PACKARD 325Skills Perspective HELENE CURTIS 331

EXERCISE Rating Organizational Performance 334

CASE Which Design Philosophy? 335

CHAPTER 12 ORGANIZATIONAL CULTUREThe Concept of Organizational Culture 340

Levels of Cultural Analysis 341Subcultures and Countercultures 342Functions of Organizational Culture 344

Observable Aspects of Organizational Culture 345Stories, Rites, Rituals, and Symbols 345Shared Meanings 346Cultural Rules and Roles 346

Values and Organizational Culture 347Linking Actions and Values 348Values and National Culture 348Values as a Competitive Advantage 348

Managing Organizational Culture 349Careers and Organizational Culture 351

Comparing Corporate Cultures 351Matching Individuals and Corporate Cultures 352

Ethics and Organizational Culture 353

339

PHOTOSkills Perspective GENERAL MOTORS 343International Perspective UPS 347Ethical Perspective NORTHWESTERN MUTUAL LIFE 353

EXERCISE The "Rational" Organization 357

CASE Quality Problems at NEC 358

Contents ^ xxiii

P A R T FIVE • MANAGING THE PROCESSES OFORGANIZATIONAL BEHAVIOR 361CHAPTER 1 3 " DECISION MAKING AND NEGOTIATION 363Decision Making in Organizations 364

Decision Environments of Managers 3,65

Types of Decisions Made by Managers 365

Ethical Aspects of Decision Making 366

Intuition and Judgment in Managerial Decision Making 367

The Role of Intuition 368

Judgmental Heuristics 369

Escalating Commitments 370

Creativity Enhancement 371

Managerial Issues in Decision Making 373

Deciding t o Decide 373

Deciding H o w to Decide 373

Deciding W h o Should Decide 375

Managing Participation in Decision Making 376

Negotiation in Organizations 379

Organizational Settings for Negotiation 379

Negotiation Goals and Outcomes 381

Ethical Aspects of Negotiation 381

Different Approaches to Negotiation 382

Distributive Negotiation 382

Integrative Negotiation 383

Gaining Integrative Agreements 384

Managerial Issues in Negotiation 385

Classic Two-Party Negotiation 385

Communication Problems in Negotiation 386

PHOTO ESSAYSEthical Perspective THE KROGER COMPANY 367Skills Perspective NIKE 372International Perspective PHILLIPS PETROLEUM 377

|> EXERCISE The Fishing Trip 390

CASE The Jim Donovan Case 392

xxiv • Contents

CHAPTER 14 COMMUNICATION AND CONFUCTThe Communication Process 397

Effective and Efficient Communication 398

Formal and Informal Communication Channels

Nonverbal Communication 400

•Barriers to Effective Communication 401

Guidelines for Effective Communication 404

Active Listening 404

The Art of Giving Feedback 406

Communication of Roles 407

Role Ambiguity 407

Role Conflict 408

Conflict 409

Levels of Conflict 409

Constructive and Destructive Conflicts 412

Conflict Situations in Organizations 412

Types of Conflict Situations 413

The Stages of Conflict 414

Conflict Management 415

Indirect Conflict Management 415

Direct Conflict Management Techniques 418

Conflict Management Styles 419

395

398

PHOTO ESSAYSInternational Perspective TEXAS INSTRUMENTS 403

Skills Perspective ESPRIT 411

Ethical Perspective TEXACO 417

Conflict Management Strategies 423

CAISL Conflict at Burger Mart 425

CHAPTER 15 POWER AND POLITICSPower 430

Position Power 431

Personal Power 432

Authority 432

Power, Authority, and Obedience

The Milgram Experiments 433

429

432

Contents ^ xxv

Obedience and the Zone of Indifference 434

Obedience and the Acceptance of Authority 435

Managerial Perspectives on Power and Influence 436

Acquiring Managerial Power 436

Turning Power into Influence 438

Empowering Others 440

Organizational Politics 442

The Two Traditions of Organizational Politics 442

The Double-Edged Sword of Organizational Politics 442

Political Action in Organizations 444

Political Action and the Manager 444

Political Action and Subunit Power 445

Political Action and the Chief Executive 446

The Ethics of Power and Politics 449

PHOTO ESSAYSSkills Perspective MONTGOMERY WARD 441

International Perspective NISSAN 443

Ethical Perspective RYDER 448

Jr EXERCISE Machiavellianism 453

CASE Political Behavior Analysis 455

CHAPTER 16 • LEADERSHIP 459Leadership and Managerial Activities 461

Leader Traits and Behaviors 462

Trait Theory 463

Leadership Behaviors 464

Leader Reward and Punishment 465

Charismatic/Transformational Theories 465

Bass's Transformation/Transactional Approach 466

Trait/Behavior Research and Practical Applications 467

Situational Contingencies and Leadership 469

Fiedler's Leadership Contingency Theory 469

House's Path-Goal Leadership Theory 472

Situational Leadership Theory 474

Competing Values Framework 476

Symbolic Leadership 478

Substitutes for Leadership 479

xxvi • Contents

PHOTO ESSAYSInternational Perspective TIME-WARNER 463

Skills Perspective CIBA-GEIGY 468

Ettiical Perspective XEROX 475

[/ EXERCISE Your Leadership Style 483

CASE Three Leaders 485

P A R T SIX • MANAGING IN A DYNAMIC ENVIRONMENT 489C H A P T E R 17 PLANNED CHANGE AND ORGANIZATION DEVELOPMENT

The Nature of Organizational Change 494

Planned and Unplanned Change 494

Organizational Targets for Change 495

Phases of Planned Change 496

Planned Change Strategies 497

Force-Coercion 498

Rational Persuasion 498

Shared Power 499

Resistance to Change 500

Why Do People Resist Change? 500

Dealing with Resistance to Change 501

Organization Development 503

Goals of Organization Development 504

Principles Underlying Organization Development 505

Ethical Aspects of Organization Development 505

The Process of Organization Development 506

Action Research and Organization Development 507

Data Utilization in Organizational Development 508

Diagnostic Foundations of Organization Development 509

Organization Development Interventions 510

Organization-Wide Interventions 511

Group and Intergroup Interventions 513

Individual Interventions 513

491

Contents ^ xxvii

PHOTOEthical Perspective J.C. PENNEY 497

International Perspective RAMADA , 499

Skills Perspective KNIGHT-RIDDER " 515

Y LXLRC1SL Force Field Analysis

LAoL Warner Manufacturing Company

CHAPTER 18 •The Dynamics of Stress

STRESS MANAGEMENT AND CAREER PLANNING524

What Is Stress? 525

Stress and Performance 526

Stress and Health 527

523

Stress in the Workplace 528Work-Related Stressors 528

Nonwork Factors and Stress 530

Personal Factors and Stress 530

Effective Stress Management 532

Strategies for Coping with Stress 532

Personal Wellness and Stress Management

Career Planning and Development 535

A Career Planning Framework 535

Initial Entry to a Career 536

Adult Life Cycles and Career Stages 537

Career Plateaus 540

Family Responsibilities and Careers 541

Managing a Managerial Career 542

Mastering the Manager's Challenge 542

Final Career Advice 543

534

PHOTO ESSAYSSkills Perspective JOHNSON & JOHNSON 534

International Perspective RUBBERMAID 539

Ethical Perspective WELLS FARGO 541

^ EXERCISE Assessing Personal Stress 547CASE Journey to the Top 549

xxviii • Contents

SUPPLEMENTARY MODULES 551A HISTORICAL FOUNDATIONS OF ORGANIZATIONAL BEHAVIOR 551

B RESEARCH FOUNDATIONS OF ORGANIZATIONAL BEHAVIOR 561

C .PERFORMANCE APPRAISAL FOUNDATIONS OF ORGANIZATIONALBEHAVIOR 571

GLOSSARY 587NOTES 599CREDITS 621NAME INDEX 6 2 5SUBJECT INDEX 629