organisational behaviour - pearson
TRANSCRIPT
ROBBINS • JUDGE • MILLETT • BOYLE
ORGANISATIONAL BEHAVIOUR
8TH EDITION
Pearson Australia(a division of Pearson Australia Group Pty Ltd)707 Collins Street, Melbourne, Victoria 3008PO Box 23360, Melbourne, Victoria 8012 www.pearson.com.au
Copyright © Pearson Australia 2017(a division of Pearson Australia Group Pty Ltd)Authorised adaptation from the United States edition entitled ORGANIZATIONAL BEHAVIOR, 16th Edition, ISBN: 0133507645 by ROBBINS, STEPHEN P.; JUDGE, TIMOTHY A., published by Pearson Education, Inc, Copyright © 2015.
Eighth adaptation edition published by Pearson Australia Group Pty Ltd, Copyright © 2017.
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National Library of AustraliaCataloguing-in-Publication Data
Title: Organisational behaviour / Stephen P Robbins, Timothy A Judge, Bruce Millett, Maree Boyle.Edition: 8th editionISBN: 9781488609329 (paperback)Notes: Includes index.Subjects: Organizational behavior. Corporate culture. Management.Other Creators/Contributors: Judge, Tim, author. Millett, Bruce, author. Boyle, Maree, author.Dewey Number: 302.35
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Contents
Preface xivGuided tour xxiAcknowledgements xxvCase matrix xxviAbout the authors xxix
PART 1 INTRODUCTION 1
Chapter 1 What is organisational behaviour? 2
The importance of interpersonal skills 4What managers do 4
Management functions 4Management roles 5Management skills 6Effective versus successful managerial activities 7A review of the manager’s job 8
Enter organisational behaviour 8Complementing intuition with systematic study 9
Myth or Science? ‘Management by walking around is the most effective management’ 9
Disciplines that contribute to the OB field 10Psychology 10Social psychology 11Sociology 11Anthropology 12
There are few absolutes in OB 12Challenges and opportunities for OB 12
Responding to economic pressures 12
OB in Practice Organisational behaviour, productivity and big data 13
Responding to globalisation 14Managing workforce diversity 14
Personal Inventory Assessments Multicultural Awareness Scale 14
Improving customer service and people skills 14Working in networked organisations 15Enhancing employee well-being at work 15Improving ethical behaviour 15
Ethical Choice Holiday deficit disorder 16
Coming attractions: developing an OB model 17An overview 17Inputs 18Processes 18Outcomes 18
Summary 22Implications for managers 22Point/Counterpoint Lost in translation? 23Questions for review 24Experiential exercise Intoxicated workplaces 24Case study Apple goes global 25Endnotes 26
PART 2 THE INDIVIDUAL 27
Chapter 2 Diversity in organisations 28Diversity 30
Demographic characteristics of the Australian workforce 30
Levels of diversity 30Discrimination 31
Personal Inventory Assessments Intercultural Sensitivity Scale 31
Biographical characteristics 32Age 32Gender 33
Myth or Science? ‘Bald is better’ 34
Race and ethnicity 35
Ethical Choice Board quotas 36
Disability 36Other biographical characteristics: tenure, religion,
sexual orientation and gender identity 37Ability 38
Intellectual abilities 39The benefits of cultural intelligence 40Physical abilities 40The role of disabilities 40
Implementing diversity management strategies 41Attracting, selecting, developing and retaining
diverse employees 41
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OB in Practice Twitter’s diversity issue 42
Diversity in groups 43Effective diversity programs 43
Globalisation Worldwide talent search for women 44
Summary 46Implications for managers 46Point/Counterpoint Affirmative action should be
abolished 47Questions for review 48Experiential exercise Feeling excluded 48Case study Human capital in the ageing workforce 48Endnotes 49
Chapter 3 Attitudes and job satisfaction 54Attitudes 56
What are the main components of attitudes? 56Attitudes and behaviour 57
Moderating variables 57Job attitudes 58
Ethical Choice Are employers responsible for workplace incivilities? 59
Globalisation Exodus phenomenon 60
Are these job attitudes really all that distinct? 61Job satisfaction 61
Measuring job satisfaction 61
OB in Practice A clash of attitudes in health care 62
How satisfied are people with their jobs? 63What causes job satisfaction? 64
Myth or Science? ‘Happy workers means happy profits’ 65
Personal Inventory Assessments Core Self Evaluation (CSE) Scale 66
The impact of satisfied and dissatisfied employees on the workplace 66
Job satisfaction and job performance 67Job satisfaction and OCB 67Job satisfaction and customer satisfaction 67Job satisfaction and absenteeism 68Job satisfaction and turnover 68Job satisfaction and workplace deviance 68Managers often ‘don’t get it’ 68
Summary 69Implications for managers 69Point/Counterpoint Employer–employee loyalty
is an outdated concept 70Questions for review 71Experiential exercise What factors are most
important to your job satisfaction? 71
Case study Job crafting 71Endnotes 72
Chapter 4 Personality and values 76Personality 78
What is personality? 78
Personal Inventory Assessments Are You a Type A Personality? 79
The Myers–Briggs Type Indicator 79The Big Five Model 80
How do the Big Five traits predict behaviour at work? 81
The Dark Triad 82Other personality traits relevant to OB 84
Core self-evaluation 84Self-monitoring 84
Myth or Science? ‘We can accurately judge individuals’ personalities a few seconds after meeting them’ 85
Proactive personality 85Personality and situations 86
Situation strength 86Trait activation theory 87
Globalisation Is the personality profile of an entrepreneur the same across different countries? 88
Values 88The importance of values 89
OB in Practice Dealing with issues of personality in the workplace 89
Terminal versus instrumental values 90Generational values 90
Linking an individual’s personality and values to the workplace 91
Person–job fit 91Person–organisation fit 91
Ethical Choice Do you have a cheating personality? 93
International values 93Hofstede’s framework for assessing cultures 93The globe framework for assessing cultures 94
Summary 97Implications for managers 97Point/Counterpoint Millennials are more narcissistic 98Questions for review 99Experiential exercise Generational values
and ‘staying put’ 99Case study The power of quiet 100Endnotes 100
CONTENTS
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Chapter 5 Emotions and moods 104What are emotions and moods? 106
The basic emotions 107The basic moods: positive and negative affect 107
Myth or Science? ‘Smile, and the work world smiles with you’ 108
The function of emotions 109Sources of emotions and moods 110
Emotional labour 114
OB in Practice How leaders can influence emotions in the workplace 114
Affective events theory 115Emotional intelligence 116
The case for EI 117The case against EI 118
Ethical Choice Should managers use emotional intelligence (EI) tests? 118
Personal Inventory Assessments Emotional Intelligence Assessment 119
Emotion regulation 119OB applications of emotions and moods 120
Selection 121Decision making 121Creativity 121Motivation 121Leadership 122Negotiation 122Customer service 122Job attitudes 123Deviant workplace behaviours 123Safety and injury at work 123How managers can influence moods 123
Globalisation Creating highly productive teams across the cultural emotional barrier 124
Summary 125Implications for managers 125Point/Counterpoint Sometimes blowing your top
is a good thing 126Questions for review 127Experiential exercise Who can catch a liar? 127Case study Can you read emotions from faces? 127Endnotes 128
Chapter 6 Perception and individual decision making 134
What is perception? 136Factors that influence perception 136
Person perception: making judgments about others 137Attribution theory 137
Globalisation Does multicultural experience make for better decisions? 139
Common shortcuts in judging others 139Specific applications of shortcuts in
organisations 141The link between perception and individual
decision making 141Decision making in organisations 142
The rational model, bounded rationality and intuition 142
Common biases and errors in decision making 144
OB in Practice The perceptive coach 145
Myth or Science? ‘All stereotypes are negative’ 146
Influences on decision making: individual differences and organisational constraints 148
Individual differences 148Ethical Choice Choosing to lie 149
Organisational constraints 150Three ethical decision criteria 151Improving creativity in decision making 152
Creative behaviour 152Causes of creative behaviour 153
Personal Inventory Assessments Creativity Scale 154
Creative outcomes (Innovation) 154
Summary 155Implications for managers 155Point/Counterpoint Stereotypes are dying 156Questions for review 157Experiential exercise Five ethical decisions 157Case study The youngest billionaire 157Endnotes 158
Chapter 7 Motivation: from concept to application 162
Defining motivation 164Early theories of motivation 164
Hierarchy of needs theory 164Theory X and Theory Y 165Two-factor theory 166
Contemporary theories of motivation 167Self-determination theory 167
Myth or Science? ‘Money can’t buy happiness’ 168
Goal-setting theory 169Other contemporary theories of motivation 170
Self-efficacy theory 170Reinforcement theory 172Equity theory/organisational justice 173Expectancy theory 176
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Personal Inventory Assessments Work Motivation Indicator 177
Applied motivation: job design 178The job characteristics model 178
Globalisation Outcry over executive pay is heard everywhere 179
How can jobs be redesigned? 180Job rotation 180Job enrichment 180
Alternative work arrangements 182Flexitime 182Job sharing 182Telecommuting 183
The social and physical context of work 184Applied motivation: employee involvement 184
Examples of employee involvement programs 184Linking employee involvement programs
and motivation theories 185Applied motivation: rewarding employees 185
What do we actually mean by ‘pay’? 186What to pay: establishing a pay structure 186How to pay: rewarding individual employees
through variable-pay programs 186Flexible benefits: developing a benefits package 188
OB in Practice Good leaders help create motivating workplaces 189
Intrinsic rewards: employee recognition programs 189
Ethical Choice Sweatshops and worker safety 190
Summary 191Implications for managers 191Point/Counterpoint ‘Face-time’ matters 192Questions for review 193Experiential exercise Assessing employee
motivation and satisfaction using the job characteristics model 193
Case study Equity and executive pay 194Endnotes 194
PART 3 THE GROUP 201
Chapter 8 Foundations of group behaviour 202
Defining and classifying groups 204Why do people form groups? 204
OB in Practice Building a culture of constructive feedback 205
Stages of group development 206The five-stage model 206
An alternative model for temporary groups with deadlines 207
Group properties 207Group property 1: roles 208Group property 2: norms 210Group property 3: status, and group property 4:
size and dynamics 213Group property 5: cohesiveness, and group
property 6: diversity 215
Personal Inventory Assessments Communicating Supportively 217
Group decision making 217Groups versus the individual 217
Globalisation Making global virtual teams effective 218
Groupthink and groupshift 219
Myth or Science? ‘US workers are more biased than Asians’ 219
Ethical Choice Using peer pressure as an influence tactic 221
Group decision-making techniques 221
Summary 223Implications for managers 223Point/Counterpoint People are more creative
when they work alone 224Questions for review 225Experiential exercise Wilderness survival 225Case study Negative aspects of collaboration 226Endnotes 227
Chapter 9 Understanding work teams 232Why have teams become so popular? 234Differences between groups and teams 234Types of teams 235
Problem-solving teams 235Self-managed work teams 235Cross-functional teams 236Virtual teams 236
OB in Practice Discussing the popularity of a leader 237
Multi-team systems 237Creating effective teams 238
Contextual factors 238Team composition 239
Globalisation Developing team members’ trust across cultures 240
Myth or Science? ‘Team members who are “hot” should make the play’ 242
Team processes 243
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Personal Inventory Assessments Team Development Behaviours 245
Turning individuals into team players 245Selection: hiring team players 245Training: creating team players 245Rewarding: providing incentives to be a
good team player 246
Ethical Choice Virtual teams leave a smaller carbon footprint 246
Beware! Teams aren’t always the answer 247
Summary 248Implications for managers 248Point/Counterpoint To get the most out of teams,
empower them 249Questions for review 250Experiential exercise Composing the ‘perfect’ team 250Case study Tongue-tied in teams 250Endnotes 251
Chapter 10 Communication 256Functions of communication 258The communication process 258Direction of communication 259
Downward communication 259Upward communication 260Lateral communication 260
Organisational communication 260Formal small-group networks 260The grapevine 261
Modes of communication 262Oral communication 262Written communication 263Non-verbal communication 265
Personal Inventory Assessments Communication Styles 265
OB in Practice The value of the message 266
Ethical Choice Using employees in organisational social media strategy 266
Choice of communication channel 267Persuasive communications 271
Automatic and controlled processing 271Interest level 271Prior knowledge 272Personality 272Message characteristics 272
Barriers to effective communication 272Filtering 272Selective perception 272Information overload 273
Emotions 273Language 273Silence 273Communication apprehension 274Lying 274
Myth or Science? ‘Today, writing skills are more important than speaking skills’ 274
Global implications 275Cultural barriers 275Cultural context 275A cultural guide 276
Globalisation Multinational firms adopt English as global language strategy 277
Summary 279Implications for managers 279Point/Counterpoint Social media presence 280Questions for review 281Experiential exercise An absence of non-verbal
communication 281Case study Using social media to your advantage 281Endnotes 282
Chapter 11 Leadership 286What is leadership? 288Trait theories 288Behavioural theories 289
Summary of trait theories and behavioural theories 290
Contingency theories 290The Fiedler model 290
Globalisation Leaders broaden their span of control in multinational organisations 291
Other contingency theories 293Leader–member exchange (LMX) theory 294Charismatic leadership and transformational
leadership 295Charismatic leadership 295Transformational leadership 297
Personal Inventory Assessments Ethical Leadership Assessment 300
Authentic leadership: ethics and trust 300What is authentic leadership? 301Ethical leadership 301Servant leadership 302Trust and leadership 302
Ethical Choice Holding leaders ethically accountable 303
How is trust developed? 303Trust as a process 304
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What are the consequences of trust? 304Leading for the future: mentoring 305
Myth or Science? ‘Top leaders feel the most stress’ 306
Challenges to the leadership construct 306Leadership as an attribution 307Substitutes for and neutralisers of leadership 307Online leadership 308
Finding and creating effective leaders 309Selecting leaders 309Training leaders 309
OB in Practice What influence do you exert as a leader? 309
Summary 311Implications for managers 311Point/Counterpoint Heroes are made, not born 312Questions for review 313Experiential exercise What is a leader? 313Case study Leadership factories 313Endnotes 314
Chapter 12 Power and politics 322A definition of power 324Bases of power 324
Formal power 325Personal power 325Which bases of power are most effective? 326
Dependency: the key to power 326The general dependency postulate 326What creates dependency? 326
Power tactics 327
Globalisation Power, gender and sexual harassment in France 329
Sexual harassment: unequal power in the workplace 329
OB in Practice How power affects people 330
Ethical Choice Should all sexual behaviour be prohibited at work? 332
Politics: power in action 332Definition of organisational politics 332The reality of politics 333
Causes and consequences of political behaviour 334Factors contributing to political behaviour 334
Myth or Science? ‘Powerful leaders keep their (fr)enemies close’ 336
How do people respond to organisational politics? 336
Impression management 338
The ethics of behaving politically 341
Personal Inventory Assessments Gaining Power and Influence 341
Summary 342Implications for managers 342Point/Counterpoint Everyone wants power 343Questions for review 344Experiential exercise Understanding power
dynamics 344Case study Barry’s peer becomes his boss 344Endnotes 345
Chapter 13 Conflict and negotiation 350A definition of conflict 352
Traditional view of conflict 352Interactionist view of conflict 352
Types and loci of conflict 353Types of conflict 353Loci of conflict 353
The conflict process 354Stage I: potential opposition or
incompatibility 355
OB in Practice Tips for managing family conflicts in business 355
Stage II: cognition and personalisation 356Stage III: intentions 357Stage IV: behaviour 358Stage V: outcomes 359
Negotiation 361Bargaining strategies 362
Myth or Science? ‘Teams negotiate better than individuals in collectivistic cultures’ 364
The negotiation process 365Individual differences in negotiation
effectiveness 366
Globalisation Trust is an issue 369
Third-party negotiations 369
Ethical Choice Using empathy to negotiate more ethically 370
Personal Inventory Assessments Strategies for Handling Conflict 370
Summary 371Implications for managers 371Point/Counterpoint Conflict benefits organisations 373Questions for review 374Experiential exercise A negotiation role-play 374Case study Choosing your battles 375Endnotes 375
CONTENTS
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PART 4 THE ORGANISATION SYSTEM 379
Chapter 14 Foundations of organisational structure 380
What is organisational structure? 382Work specialisation 382Departmentalisation 383Chain of command 384
OB in Practice Unleashing the constraints of structure 385
Span of control 386Centralisation and decentralisation 386Formalisation 387
Common organisational designs 388The simple structure 388The bureaucracy 388
Ethical Choice Ethical concerns of deskless workplaces 389
The matrix structure 390New design options 391
The virtual organisation 391The boundaryless organisation 392
Globalisation The world is my corporate headquarters 393
The leaner organisation: downsizing 394
Personal Inventory Assessments Organisational Structure Assessment 395
Why do structures differ? 395Strategy 395Organisation size 396Technology 397
Myth or Science? ‘Employees can work just as well from home’ 397
Environment 398Organisational designs and employee behaviour 399
Summary 401Implications for managers 401Point/Counterpoint The end of management 402Questions for review 403Experiential exercise Dismantling a bureaucracy 403Case study Boeing Dreamliner: engineering
nightmare or organisational disaster? 404Endnotes 405
Chapter 15 Organisational culture 408What is organisational culture? 410
A definition of organisational culture 410Culture is a descriptive term 410
Do organisations have uniform cultures? 411Strong versus weak cultures 412Culture versus formalisation 412
What do cultures do? 412Culture’s functions 412Culture creates climate 413The ethical dimension of culture 413Culture and innovation 414Culture as an asset 414Culture as a liability 415
Globalisation Creating a multinational organisational culture 416
Creating and sustaining culture 417How a culture begins 417Keeping a culture alive 417
Myth or Science? ‘An organisation’s culture is forever’ 418
OB in Practice Dealing with a toxic culture in hospitals 420
Summary: how cultures form 421How employees learn culture 422
Stories 422Rituals 422Symbols 422Language 422
Creating an ethical organisational culture 423
Ethical Choice A culture of compassion 424
Creating a positive organisational culture 425Building on employee strengths 425Rewarding more than punishing 425Emphasising vitality and growth 425Limits of positive culture 426
Spirituality and organisational culture 426What is spirituality? 426Why spirituality now? 426Characteristics of a spiritual organisation 427Criticisms of spirituality 427
Global organisational culture 428
Personal Inventory Assessments Comfort with Change Scale 429
Summary 430Implications for managers 430Point/Counterpoint Organisations should strive
to create a positive organisational culture 431Questions for review 432Experiential exercise Rate your classroom culture 432Case study Mergers don’t always lead to culture
clashes 433Endnotes 433
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Chapter 16 Organisational change and stress management 438
Forces for change 440Planned change 441Resistance to change 442
Globalisation The state of perpetual change: globalisation 442
Overcoming resistance to change 444The politics of change 445
Approaches to managing organisational change 445Lewin’s three-step model 446Kotter’s eight-step plan for implementing
change 447Action research 447Organisational development 448
OB in Practice Can coaches really help in times of change? 450
Creating a culture for change 451Stimulating a culture of innovation 451Creating a learning organisation 453Organisational change and stress 454
Work stress and its management 455
What is stress? 455Potential sources of stress 456
Myth or Science? ‘When you’re working hard, sleep is optional’ 457
Individual differences 459
Ethical Choice Manager and employee stress during organisational change 459
Cultural differences 460Consequences of stress 460Managing stress 462
Personal Inventory Assessments Tolerance of Ambiguity Scale 463
Summary 464Implications for managers 464Point/Counterpoint Responsible managers relieve
the stress on their employees 465Questions for review 466Experiential exercise Strategising change 466Case study When companies fail to change 467Endnotes 467
Glossary 473Index 481
CONTENTS
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Welcome to the eighth edition of Organisational Behaviour! Long considered the standard for all organisational behaviour textbooks, the text’s latest edition continues its tradition of making current, relevant research come alive for students. While maintaining the book’s hallmark features—clear writing style, cutting-edge content and engaging pedagogy—the eighth edition has been thoroughly updated to reflect the most recent research within the field of organisational behaviour. While we have preserved the core material, we’re confident that this edition reflects the most important research and topical issues facing organisations, managers and employees.
What’s new in the eighth edition?The authors and editorial team at Pearson have worked very closely with existing users and other key academics in the market to ensure that we have developed a book that continues to be in line with growing student and lecturer needs. The following list provides a brief summary of the updates to each chapter.
Chapter 1. What is organisational behaviour?• New opening vignette (Turnaround at Tassal)• New Myth or Science? (‘Management by walking around is the most effective management’)• New OB in Practice (Organisational behaviour, productivity and big data)• New feature! Personal Inventory Assessments (Multicultural awareness scale)• New Ethical Choice (Holiday deficit disorder)• Major new section (Enhancing employee well-being at work)• New research on the importance of interpersonal skills• Updated discussion on challenges and opportunities for OB • Updated section with new research on improving customer service• A change to the OB model• New Point/Counterpoint (Lost in translation?)• New Experiential Exercise (Intoxicated workplaces)• New Case Study (Apple goes global)
Chapter 2. Diversity in organisations• New opening vignette (A true champion in the executive suite)• New feature! Personal Inventory Assessments (Intercultural sensitivity scale)• New Myth or Science? (‘Bald is better’)• Updated discussion on gender• New Ethical Choice (Board quotas)• New OB in Practice (Twitter’s diversity issue)• New Globalisation (Worldwide talent search for women)• New Point/Counterpoint (Affirmative action should be abolished)• Updated Case Study (Human capital in the ageing workforce)
Chapter 3. Attitudes and job satisfaction• New opening vignette (Patching together a career)• New Ethical Choice (Are employers responsible for workplace incivilities?)• New research and discussion on employee engagement
Preface
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• New Globalisation (Exodus phenomenon)• New OB in Practice (A clash of attitudes in health care)• New research on cultural differences in job satisfaction• New Myth or Science? (‘Happy workers means happy profits’)• New feature! Personal Inventory Assessments (Core self-evaluation (CSE) scale)• Updated Point/Counterpoint (Employer–employee loyalty is an outdated concept)• New Case Study ( Job crafting)
Chapter 4. Personality and values• New opening vignette (Aligning individual and organisational values in a police service)• New feature! Personal Inventory Assessments (Are you a Type A personality?)• Major new section (The Dark Triad)• Updated section on other personality traits related to OB• New Myth or Science? (‘We can accurately judge individuals’ personalities a few seconds after
meeting them’)• New research and discussion on proactive personality• Major new section (Personality and situations)• New Globalisation (Is the personality profile of an entrepreneur the same across different
countries?)• New OB in Practice (Dealing with issues of personality in the workplace)• Updated discussion on terminal and instrumental values• New Ethical Choice (Do you have a cheating personality?)• Updated Point/Counterpoint (Millennials are more narcissistic)• New Experiential Exercise (Generational values and ‘staying put’)• New Case Study (The power of quiet)
Chapter 5. Emotions and moods• New opening vignette (Affective computing: reading your mind)• New Myth or Science? (‘Smile, and the work world smiles with you’)• New research and discussion on the role of emotions in ethical decisions• New research on gender and emotions• New OB in Practice (How leaders can influence emotions in the workplace)• New Ethical Choice (Should managers use emotional intelligence (EI) tests?)• New feature! Personal Inventory Assessments (Emotional intelligence assessment)• Major new section (Emotion regulation)• New research and discussion on transformational leadership and emotional display• New research and discussion on anger and workplace outcomes• New Globalisation (Creating highly productive teams across the cultural emotional barrier)• New Point/Counterpoint (Sometimes blowing your top is a good thing)• Updated Experiential Exercise (Who can catch a liar?)• Updated Case Study (Can you read emotions from faces?)
Chapter 6. Perception and individual decision making• New opening vignette (The price tag for creativity: $30 million. The return: priceless)• New Globalisation (Does multicultural experience make for better decisions?)• New OB in Practice (The perceptive coach)• New Myth or Science? (‘All stereotypes are negative’)• New Ethical Choice (Choosing to lie)• Updated section on improving creativity in decision making • New feature! Personal Inventory Assessments (Creativity scale)• New Point/Counterpoint (Stereotypes are dying)• New Case Study (The youngest billionaire)
Chapter 7. Motivation: from concept to application• New opening vignette (Telecommuting? No. Extra maternity leave? Yes)• New Myth or Science? (‘Money can’t buy happiness’)• New feature! Personal Inventory Assessments (Work motivation indicator)
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PREFACE
• New Globalisation (Outcry over executive pay is heard everywhere)• New OB in Practice (Good leaders help create motivating workplaces)• New Ethical Choice (Sweatshops and worker safety)• New Point/Counterpoint (‘Face-time’ matters)• New Case Study (Equity and executive pay)
Chapter 8. Foundations of group behaviour• New opening vignette (Teamwork and hard Aussie rock)• New OB in Practice (Building a culture of constructive feedback)• New research and discussion on deviant workplace behaviour• New feature! Personal Inventory Assessments (Communicating supportively)• New Globalisation (Making global virtual teams effective)• Updated Myth or Science? (‘US workers are more biased than Asians’)• Updated Ethical Choice (Using peer pressure as an influence tactic)• New Point/Counterpoint (People are more creative when they work alone)
Chapter 9. Understanding work teams• New opening vignette (The challenge of working with executive teams)• New OB in Practice (Discussing the popularity of a leader)• Major new section on multi-team systems• New Globalisation (Developing team members’ trust across cultures)• New Myth or Science? (‘Team members who are “hot” should make the play’)• New feature! Personal Inventory Assessments (Team development behaviours)• Updated Ethical Choice (Virtual teams leave a smaller carbon footprint)• Review of research on team decision-making strategies• New Point/Counterpoint (To get the most out of teams, empower them)• New Experiential Exercise (Composing the ‘perfect’ team)• New Case Study (Tongue-tied in teams)
Chapter 10. Communication• New opening vignette (Do you suffer from communication incompatibility?)• Updated section on oral communication• Updated section on written communication, including social media, instant messaging and
text messaging• New feature! Personal Inventory Assessments (Communication styles)• New OB in Practice (The value of the message)• New Ethical Choice (Using employees in organisational social media strategy)• New research and discussion on choosing communication methods• New Myth or Science? (‘Today, writing skills are more important than speaking skills’)• New Globalisation (Multinational firms adopt English as global language strategy)• New Point/Counterpoint (Social media presence)• Updated Case Study (Using social media to your advantage)
Chapter 11. Leadership• New opening vignette (Developing critical relationships at Brisbane Airport Corporation)• New Globalisation (Leaders broaden their span of control in multinational organisations)• New feature! Personal Inventory Assessments (Ethical leadership assessment)• New research on authentic leadership• Major new section on ethical leadership• New Ethical Choice (Holding leaders ethically accountable)• New research on trust as a process• New research on mentoring• New Myth or Science? (‘Top leaders feel the most stress’)• New discussion on selecting and training leaders• New OB in Practice (What influence do you exert as a leader?)• Updated Point/Counterpoint (Heroes are made, not born)• New Experiential Exercise (What is a leader?)
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PREFACE
Chapter 12. Power and politics• New opening vignette (From power to prison)• New Globalisation (Power, gender and sexual harassment in France)• New research and discussion on sexual harassment• New OB in Practice (How power affects people)• New Myth or Science? (‘Powerful leaders keep their (fr)enemies close’)• New feature! Personal Inventory Assessments (Gaining power and influence)• New Point/Counterpoint (Everyone wants power)• New Case Study (Barry’s peer becomes his boss)
Chapter 13. Conflict and negotiation• New opening vignette (A change of tune)• Major new section on types and loci of conflict• New OB in Practice (Tips for managing family conflicts in business)• New Myth or Science? (‘Teams negotiate better than individuals in collectivistic cultures’)• New Globalisation (Trust is an issue)• New Ethical Choice (Using empathy to negotiate more ethically)• New feature! Personal Inventory Assessments (Strategies for handling conflict)• New Case Study (Choosing your battles)
Chapter 14. Foundations of organisational structure• New opening vignette (Heard but not seen—the virtual assistant)• Discussion on the latest trends in job specialisation• New OB in Practice (Unleashing the constraints of structure)• New research and discussion on centralisation/decentralisation• New Ethical Choice (Ethical concerns of deskless workplaces)• New Globalisation (The world is my corporate headquarters)• New feature! Personal Inventory Assessments (Organisational structure assessment)• New Myth or Science? (‘Employees can work just as well from home’)• New Point/Counterpoint (The end of management)• New Case Study (Boeing Dreamliner: engineering nightmare or organisational disaster?)
Chapter 15. Organisational culture• New opening vignette (Two cases of culture in action)• Major new section on the ethical dimension of culture• Major new section on culture and innovation• New Globalisation (Creating a multinational organisational culture)• New Myth or Science? (‘An organisation’s culture is forever’)• New research on keeping a culture alive• New OB in Practice (Dealing with a toxic culture in hospitals)• New Ethical Choice (A culture of compassion)• New research and discussion on global implications• New feature! Personal Inventory Assessments (Comfort with change scale)• Updated Case Study (Mergers don’t always lead to culture clashes)
Chapter 16. Organisational change and stress management• New opening vignette (One accounting firm’s response to changing client needs)• New research on forces for change• New Globalisation (The state of perpetual change: globalisation)• New OB in Practice (Can coaches really help in times of change?)• Major new section on organisational change and stress• New research on work stress and its management• New Myth or Science? (‘When you’re working hard, sleep is optional’)• New Ethical Choice (Manager and employee stress during organisational change)• New feature! Personal Inventory Assessments (Tolerance of ambiguity scale)• New Experiential Exercise (Strategising change)• New Case Study (When companies fail to change)
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PREFACE
Resources for educators and studentsAdditional material has been developed for both educators and students and is designed to complement the textbook.
MYMANAGEMENTLAB FOR ROBBINS/JUDGE/MILLETT/BOYLE
ORGANISATIONAL BEHAVIOUR, EIGHTH EDITION
THE POWER OF PRACTICE.MyManagementLab creates the perfect pedagogical loop that provides not only text-specific assessment and practice problems, but also tutorial support to make sure students learn from their mistakes.
STUDY PLAN: A study plan is generated from each student’s results on a pre-test. Students can clearly see which topics they have mastered and, more importantly, which they need to work on.
UNLIMITED PRACTICE: MyManagementLab comes with pre-loaded assignments covering in-chapter content, all of which are automatically graded, to ensure students get as much practice as they need.
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PREFACE
LEARNING RESOURCES: The following links to additional learning resources are incorporated into the Study Plan:• the relevant section of the eText, so
students can review key concepts • videos which demonstrate real-world
management scenarios• simulations which enable students to
practice making real-world decisions in a safe environment.
ASSIGNABLE CONTENT: Educators can select content from the Study Plan, Multimedia, Personal Inventory Assessments and/or Test Bank and assign to students as homework or quizzes.
MYMANAGEMENTLAB WWW.PEARSON.COM.AU/ROBBINS8
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PREFACE
PERSONAL INVENTORY ASSESSMENTS (PIA)Students learn better when they can connect what they’re learning to their personal experience. PIA (Personal Inventory Assessments) is a collection of online exercises designed to promote self-reflection and student engagement, enhancing students’ ability to connect with concepts taught in principles of management, organisational behaviour and human resource management classes. Assessments are assignable by instructors who can then track student completion.
Educator resourcesA suite of resources is provided to assist with delivery of the text, as well as to support teaching and learning.
SOLUTIONS MANUALThe Solutions Manual provides educators with detailed, accuracy-verified solutions to the end-of-chapter problems in the book.
TEST BANKThe Test Bank provides a wealth of accuracy-verified testing material. Updated for this new edition, each chapter offers a wide variety of question types arranged by learning objective and tagged by AACSB standards. Each Test Bank question can also be assigned to students and auto-graded through MyManagementLab.
POWERPOINT LECTURE SLIDESA comprehensive set of PowerPoint slides can be used by educators for class presentations or by students for lecture preview or review. They include key figures and tables, as well as a summary of key concepts and examples from the text.
DIGITAL IMAGE POWERPOINT SLIDESAll the diagrams and tables from the text are available for lecturer use in chapter-based PowerPoint slides.
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PREFACE
Guided tour
CHAPTER LEARNING OBJECTIVES make learning more efficient. Each chapter opens with a list of learning objectives that describe what you should be able to do after studying the chapter. These objectives are designed to focus your attention on the major issues within each chapter.
VIGNETTES open each chapter with a case example about an individual or an organisation relating to the particular content in that chapter. The featured individuals or organisations come from a broad spectrum and each example is selected specifically to help you link OB concepts to OB practice.
OB IN PRACTICE boxes look at current issues in OB and put forward the differing points of view that surround an issue.
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attitudes and leads those who feel harassed to withdraw from the organisation. In many cases, reporting sexual harassment doesn’t improve the situation, because the organisation responds in a negative or unhelpful way. When organisational leaders make honest efforts to stop the harassment, the outcomes are much more positive.32
Sexual harassment is defined as any unwanted activity of a sexual nature that affects an individual’s employment and creates a hostile work environment. Under Australian federal legislation, sexual harassment is defined as ‘an unwelcome sexual advance, unwelcome request for sexual favours or other unwelcome conduct of a sexual nature which makes a person feel offended, humiliated, or intimidated, and where that reaction is reasonable in the circumstances’.33 But disagreement continues about what specifically constitutes sexual harassment. Organisations have generally made progress in the past decade towards limiting overt forms of sexual harassment. This includes unwanted physical touching, recurring requests for dates when it is made clear that
sexual harassment Any unwanted activity of a sexual nature that affects an individual’s employment and creates a hostile work environment.
how power affects people
There are corrupting aspects of power. Evidence suggests that power leads people to place their own interests ahead of those of others. Why does this happen? Interestingly, research suggests that power not only leads people to focus on their self-interests because they can; it also liberates people to focus inward, and thus come to place greater weight on their goals and interests. Power also appears to lead individuals to see themselves as tools to obtain their instrumental goals, to value relations with people with less power, and to see relationships as more peripheral.
That’s not all. Powerful people react—especially negatively—to any threats to their competence. They’re more willing to denigrate others. People given power are more likely to make self-interested decisions when faced with a moral hazard (such as when hedge fund managers take more risks with other people’s money because they’re rewarded for gains but less often punished for losses). Power also leads to overconfident decision making.
Frank Lloyd Wright, a well-known American architect, is a good example of power’s corrupting effects. Early in his career, Wright worked for and was mentored by a renowned architect, Louis Sullivan. Before he achieved greatness, Wright was copious in his praise for Sullivan. Later in his career, that praise faded, and Wright even took credit for one of Sullivan’s noted designs. Wright was never a benevolent man, but as his power accumulated, so did his potential to behave in a ‘monstrous’ way towards others.
So, yes, power does appear to have some important disturbing effects on us. But that is hardly the whole story—it’s more complicated than that. Power doesn’t affect everyone in the same way, and there are even positive effects of power. Let’s consider each of these in turn. First, the toxic effects of power depend on one’s personality. Research suggests that if we have an anxious personality, power doesn’t corrupt us because we are less likely to think that using power benefits us. Second, the corrosive effect of power can be contained by organisational systems. One study found, for example, that while power made people behave in a self-serving manner, when accountability of this behaviour was initiated, the self-serving behaviour stopped. Third, we have the power to blunt the negative effects of power. One study showed that simply expressing gratitude towards powerful others made them less likely to aggress against us. Finally, remember the aphorism that those with little power grab and abuse what little they have? There appears to be some truth to this in that the people most likely to abuse power are those who are low in status and gain power. Why is this the case? It appears that having low status is threatening, and this fear is used in negative ways if power is given.
SOURCES: Y. Cho and N. J. Fast, ‘Power, defensive denigration, and the assuaging effect of gratitude expression’, Journal of Experimental Social Psychology 48, 2012, pp. 778–82; M. Pitesa and S. Thau, ‘Masters of the universe: how power and accountability influence self-serving decisions under moral hazard’, Journal of Applied Psychology 98, 2013, pp. 550–8; N. J. Fast, N. Sivanathan, D. D. Mayer and A. D. Galinsky, ‘Power and overconfident decision-making’, Organizational Behavior and Human Decision Processes 117, 2012, pp. 249–60; A. Grant, ‘Yes, power corrupts, but power also reveals’, Government Executive, 23 May 2013; J. K. Maner, M. T. Gaillot, A. J. Menzel and J. W. Kunstman, ‘Dispositional anxiety blocks the psychological effects of power’, Personality and Social Psychology Bulletin 38, 2012, pp. 1383–95; and N. J. Fast, N. Halevy and A. D. Galinsky, ‘The destructive nature of power without status’, Journal of Experimental Social Psychology 48, 2012, pp. 391–4.
oB in PrActice
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Learning ObjeCtives
After studying this chapter, you should be able to:
1. Define group and differentiate between different types of groups.
2. Identify the five stages of group development.
3. Show how role requirements change in different situations.
4. Demonstrate how norms and status exert influence on an individual’s
behaviour.
5. Show how status and size differences affect group performance.
6. Describe how issues of cohesiveness and diversity can be integrated
for group effectiveness.
7. Contrast the strengths and weaknesses of group decision making.
A tribe is a group of people connected to one another, connected to a leader, and connected to an idea. For millions of years, human beings have been part of one tribe or another. A group needs only two things to be a tribe: a shared interest and a way to communicate.Seth Godin
Foundations of group behaviour
ChaPter
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Teamwork and hard aussie rockThe Easybeats were a popular rock band in the 1960s, and the first Australian band to score an international hit with ‘Friday on My Mind’. Formed in 1964, the band lasted only five years before financial disputes and internal rifts caused it to disband. Another Australian rock band, AC/DC, has become one of the most successful bands of all time, with a career spanning more than 40 years. Clearly, many bands don’t last that long in the limelight, so what has held this group together for so long? Has teamwork got anything to do with succeeding in the music business?
While there have been changes to the membership of AC/DC, the group that has been central to its longevity is the Young family. A close-knit family of eight children, the Youngs emigrated to Australia from Scotland in 1963. Two of the Youngs, Malcolm and Angus, became guitarists in the band. A third, George, has played a significant role in the band’s development and management. George first rose to stardom as the rhythm guitarist of the Easybeats. According to Jesse Fink, author of The Youngs: The Brothers Who Built AC/DC, George’s early disappointing experience with the business side of the music industry is one of the reasons AC/DC has remained so private and self-reliant.
The family business at the heart of AC/DC has helped it become the most consistent brand in rock and roll. A recent study found that businesses based on strong family influences, such as AC/DC, are, as a general rule, less likely to innovate. Family influence leads businesses to make choices based on non-economic considerations, and family dynamics often override business considerations. Family influence also reinforces emotional ties to the status quo.
AC/DC has never strayed far from its familiar brand of hard rock, and their success appears to contradict the innovate-or-die approach to business. Says Fink: ‘The key business lesson from AC/DC is that if you do something well, stick with it. . . . AC/DC don’t force experimental new songs on their audience. They give them what they want. And they do it exceptionally well.’ Fink believes few musicians could continue to please their fans with a steady supply of new songs while staying within such narrow musical parameters. Angus Young, AC/DC’s lead guitarist, puts it this way: ‘We’ve got the basic thing kids want. They want to rock and that’s it. When you hit a guitar chord, a lot of the kids in the audience are hitting it with you. . . . They’re so much into the band they’re going through all the motions with you.’
The Young brothers’ appearance on the Business Review Weekly’s ‘Rich Families’ list shouldn’t come as a surprise: AC/DC are easily one of the world’s biggest-selling bands, with over 200 million albums sold, including more than 22 million copies of 1980’s Back in Black—the second-highest selling album of all time (behind Michael Jackson’s Thriller). In the cut-throat music industry, the three Young brothers are a powerful and enduring team.
SOURCES: R. Blatt, ‘Why being a family business made AC/DC the most consistent brand in rock n roll’, Forbes, 30 April 2014; J. Michaud, ‘The brothers who built AC/DC’, 2 December 2014, The New Yorker; and A. Newstead, ‘The richest rock music group in Australia proves money talks’, Tonedeaf, 31 July 2013.
source © sergione infuso/Demotix/Corbis.
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What is organisational behaviour? Chapter 1
Complementing intuition with systematic studyEach of us is a student of behaviour. Whether you have explicitly thought about it before, you have been ‘reading’ people almost all your life, watching their actions and trying to interpret what you see or to predict what people might do under different conditions. Unfortunately, the casual or common-sense approach to reading others can often lead to erroneous predictions. However, you can improve your predictive ability by supplementing intuition with a more systematic approach.
Following the systematic approach presented in this book will enable you to uncover important facts and relationships, and provides a base from which to make more accurate predictions of behaviour. Underlying this systematic approach is the belief that behaviour is not random. Rather, we can identify fundamental consistencies underlying the behaviour of all individuals and modify them to reflect individual differences.
These fundamental consistencies are very important. Why? Because they allow predictability. Behaviour is generally predictable, and the systematic study of behaviour is a means to making
‘Management by walking around is the most effective management’This statement is mostly false, but with a caveat. Management by walking around (MBWA) is an organisational principle made famous with the 1982 publication of In Search of Excellence and based upon a 1970s’ initiative by Hewlett-Packard—in other words, it’s a dinosaur. But the idea of requiring managers at all levels of the organisation to wander around their departments to observe, converse with and hear from employees continues as a common business practice. Many companies that expect managers and executives to do regular ‘floor time’ have claimed benefits ranging from employee engagement to deeper management understanding of company issues. While MBWA sounds helpful, though, it is not a panacea. The limitations of MBWA are threefold: available hours, focus and application.
1. Available hours. Managers are tasked with planning, organising, coordinating and controlling, yet even CEOs—the managers who should be the most in control of their time—report that 53% of their average 55-hour workweek is spent in meetings. We’ve yet to see a meeting conducted while touring the plant!
2. Focus. MBWA turns management’s focus towards the concerns of employees. This is good, but only to a degree. As noted by Jeff Weiner, CEO of LinkedIn, this is a problem. ‘Part of the key to time management is carving out time to think, as opposed to constantly reacting. And during that thinking time, you’re not only thinking strategically, thinking proactively, thinking longer-term, but you’re literally thinking about what is urgent versus important.’ Weiner and other CEOs argue that meetings distract them from their purpose, especially internal company interactions.
3. Application. The principle behind MBWA is that the more managers know their employees, the more effective those managers will be. This isn’t always (or even often) true. As we’ll learn in Chapter 6, knowing (or thinking you know) something shouldn’t always lead us to act on only that information. For example, a 30-minute test conducted recently to determine personality traits and reactions to scenarios resulted in a 20% reduction in attrition for a Xerox call centre, even though managers had previously been diligent in seeking information on candidates through interviews. There is no substitute for good, objective data.
Based on the need for managers to dedicate their efforts to administering and growing businesses, and given the proven effectiveness of objective performance measures, it seems the time for MBWA is gone. Yet, there is one caveat. We certainly don’t argue that managers should refrain from knowing their employees, or that a stroll around the work floor is a bad idea. Rather, we find the regular, intentional interactions of MBWA do not, in themselves, make an effective management tool.
SOURCES: H. Mintzberg, ‘The manager’s job’, Harvard Business Review, March–April 1990, pp. 1–13; R. E. Silverman, ‘Where’s the boss? Trapped in a meeting’, The Wall Street Journal, 14 February 2012, pp. B1, B9; and J. Walker, ‘Meet the new boss: big data’, The Wall Street Journal, 20 September 2012, p. B1.
MYTH OR SCienCe?
Show the value to OB of systematic study.4
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Foundations of organisational structure ChaPter 14
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Why do structures differ?We have described organisational designs ranging from the highly structured bureaucracy to the amorphous boundaryless organisation. The other designs we discussed exist somewhere between these extremes.
Exhibit 14.7 (on the next page) recaps the discussions by presenting two extreme models of organisational design. One we call the mechanistic model. This model is generally synonymous with the bureaucracy in that it has highly standardised processes for work, high formalisation and more managerial hierarchy. The other extreme, the organic model, looks a lot like the boundaryless organisation. It is flat, has fewer formal procedures for making decisions, has multiple decision makers and favours flexible practices.34
With these two models in mind, let’s ask a few questions: Why are some organisations structured along more mechanistic lines whereas others follow organic characteristics? What forces influence the choice of design? Below, we discuss the major causes or determinants of an organisation’s structure.35
strateGyStructure is a means to achieve objectives, and objectives derive from the organisation’s overall strategy, so it’s only logical that strategy and structure should be closely linked. In fact, structure should follow strategy. If management significantly changes the organisation’s strategy, the structure must change to accommodate it.36 Most current strategy frameworks focus on three strategy dimensions—innovation, cost-minimisation and imitation—and the structural design that works best with each.37
To what degree does an organisation introduce major new products or services? An innovation strategy strives to achieve meaningful and unique innovations. Obviously, not all organisations pursue innovation. 3M and Apple do, but conservative retailer Myer does not. Innovative
Demonstrate how organisational structures differ, and contrast mechanistic and organic structural models.
4
organic model A structure that is flat, uses cross-hierarchical and cross-functional teams, has low formalisation, possesses a comprehensive information network and relies on participative decision making.
innovation strategy A strategy that emphasises the introduction of major new products and services.
mechanistic model A structure characterised by extensive departmentalisation, high formalisation, a limited information network and centralisation.
Companies can reduce negative impacts by preparing for the post-downsizing environment in advance, thus alleviating some employee stress and strengthening support for the new strategic direction.33 Here are some effective strategies for downsizing, and suggestions for implementing them. Most are closely linked to the principles of organisational justice discussed in Chapter 7.
• Investment. Companies that downsize to focus on core competencies are more effective when they invest in high-involvement work practices afterwards.
• Communication. When employers make efforts to discuss downsizing with employees early on in the process, employees are less worried about the outcomes and feel that the company is taking their perspective into account.
• Participation. Employees worry less if they can participate in the process in some way. In some companies, voluntary early retirement programs or severance packages can help achieve leanness without lay-offs.
• Assistance. Providing severance, extended healthcare benefits and job search assistance demonstrates that a company does care about its employees and honours their contribution.
Companies that make themselves lean can be more agile, efficient and productive, but only if they make cuts carefully and help employees through the process.
Personal Inventory assessmentsOrganisational Structure AssessmentTo learn more about how organisations are structured, complete this PIA.
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A more recent review of 160 studies found that the followers of leaders high in consideration were more satisfied with their jobs, were more motivated and had more respect for their leader. Initiating structure was more strongly related to higher levels of group and organisation productivity and more positive performance evaluations.
Some research from the Global Leadership and Organizational Behavior Effectiveness (GLOBE) study suggests there are international differences in preference for initiating structure and consideration.15 Based on the values of Brazilian employees, an Australian manager leading a team in Brazil would need to be team-oriented, participative and humane. Leaders high in consideration would succeed best in this culture. As one Brazilian manager said in the GLOBE study: ‘We do not prefer leaders who take self-governing decisions and act alone without engaging the group. That’s part of who we are.’ Compared to Australian employees, the French have a more bureaucratic view of leaders and are less likely to expect leaders to be humane and considerate. A leader high in initiating structure (relatively task-oriented) will do best in this culture, and can make decisions in a relatively autocratic manner. A manager who scores high on consideration (people-oriented) may find that style backfiring in France. According to the GLOBE study, Chinese culture emphasises being polite, considerate and unselfish, but it also has a high performance orientation. Thus, consideration and initiating structure may both be important to succeed in that culture.
Summary of trait theorieS and behavioural theorieSLeaders who have certain traits and who display consideration and structuring behaviours do appear to be more effective. Perhaps you’re wondering whether conscientious leaders (trait) are more likely to be structuring (behaviour), and extraverted leaders (trait) are more likely to be considerate (behaviour). Unfortunately, it is not known if there is a connection. Future research is needed to integrate these approaches.
Some leaders may have the right traits or display the right behaviours and still fail. As important as traits and behaviours are in identifying effective or ineffective leaders, they do not guarantee success. The context matters, too.
contingency theoriesSome tough-minded leaders seem to gain a lot of admirers when they take over struggling companies and help lead them out of the doldrums.
Predicting leadership success is more complex than isolating a few traits or behaviours. What worked in very bad times and in very good times for some leaders doesn’t seem to translate into long-term success. The failure by researchers in the mid-20th century to obtain consistent results led to a focus on situational influences. The relationship between leadership style and effectiveness suggested that, under condition a, style x would be appropriate, whereas style y was more suitable for condition b, and style z for condition c. But what were conditions a, b, c? It was one thing to say that leadership effectiveness depends on them and another to be able to identify them.
the fiedler modelThe first comprehensive contingency model for leadership was developed by Fred Fiedler.16 The Fiedler contingency model proposes that effective group performance depends on the proper match between the leader’s style and the degree to which the situation gives the leader control.
Identifying leadership styleFiedler believes that a key factor in leadership success is the individual’s basic leadership style. He created the least preferred co-worker (LPC) questionnaire to identify that style by measuring whether a person is task-oriented or relationship-oriented. The LPC questionnaire asks respondents to think of all the colleagues they have ever had and describe the one person they least enjoyed working with by rating that person on a scale of 1 to 8 for each of 16 sets of contrasting adjectives (such as pleasant–unpleasant, efficient–inefficient, open–guarded, supportive–hostile). If you describe the person you are least able to work with in favourable terms (a high LPC score), Fiedler would label you
Assess contingency theories of leadership by their level of support.
4
Fiedler contingency model The theory that effective groups depend on a proper match between a leader’s style of interacting with subordinates and the degree to which the situation gives control and influence to the leader.
least preferred co-worker (lPc) questionnaire An instrument that purports to measure whether a person is task- or relationship-oriented.
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MYTH OR SCIENCE? boxes present a commonly accepted ‘fact’ about human behaviour, followed by confirming or disproving research evidence. These sections help you to see how the field of OB, built on a large body of research evidence, can provide valuable insights into human behaviour at work.
The KEY TERMS are highlighted in bold print when they first appear and are defined in the adjoining margin. The terms are also grouped together at the end of the book in the Glossary.
PERSONAL INVENTORY ASSESSMENTS (PIA) are online exercises which help you to connect what you’re learning to your personal experience. They are designed to provide you with insight into your strengths and weaknesses, helping you to become a better manager.
The LEARNING OBJECTIVE is repeated in the margin where the relevant text appears in the chapter.
GUIDED TOUR
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Part 2 The individual
EI is biologically basedIn one study, people with damage to the brain area that governs emotional processing (part of the prefrontal cortex) scored no lower on standard measures of intelligence than people without similar damage. Nevertheless, they scored significantly lower on EI tests and were impaired in normal decision making. This study suggests that EI is neurologically based in a way that’s unrelated to standard measures of intelligence.75 There is also evidence that EI is genetically influenced, further supporting the idea that it measures a real underlying biological factor.76
The case againsT eiFor all its supporters, EI has just as many critics who say it is vague and impossible to measure, and they question its validity.
EI researchers don’t agree on definitionsTo many researchers, it’s not clear what EI is because researchers use different definitions of it.77 Some have focused on tests with right and wrong answers from which we can infer someone’s ability
should managers use emotional intelligence (ei) tests?As we discussed in this chapter, the concept of emotional intelligence has raised some debate. One of the topic questions for managers is whether to use EI tests in the selection process. Here are some ethical considerations:
• There is no commonly accepted test. For instance, researchers have recently used the Mayer–Salovey–Caruso Emotional Intelligence Test (MSCEIT), the Trait Emotional Intelligence Questionnaire and the newly developed Situational Judgment Test of Emotional Intelligence (SJT of EI) in studies. Researchers believe EI tests may need to be culturally specific because emotional displays vary by culture; thus, the interpretation of emotional cues differs. A recent study in India comparing the emotional intelligence scores for Indian and North American executives using the Emotional Competence Inventory (ECI-2) test found the results similar but not the same, suggesting the need for modification.
• Applicants may react negatively to taking an EI test in general, or to parts of it. The face recognition test, for example, may seem culturally biased to some if the subject photos are not diverse. Also, participants who score high on EI tests tend to consider them fair; applicants who score lower may not perceive the tests to be fair and can thus consider the hiring organisations unfavourably—even if they score well on other assessments.
• EI tests may not be predictive of performance for all types of jobs. In a study of 600 Romanian participants, results indicated that EI was valid for salespeople, public servants and CEOs of public hospitals, but these were all roles requiring significant social interaction. EI tests may need to be tailored for each position category or not be used when the position description doesn’t warrant its use.
• It remains somewhat unclear what EI tests are actually measuring. They may reflect personality or intelligence, in which case other measures might be better.
• There isn’t enough research on how emotional intelligence affects, for instance, counterproductive work behaviours. It may not be prudent to test and select applicants who are rated high on EI when we aren’t yet certain that everything about EI leads to desired workplace outcomes.
These concerns suggest EI tests should be avoided in hiring decisions. However, because research has indicated that emotional intelligence does predict job performance to some degree, managers should not be too hasty to dismiss the tests. Rather, those wishing to use EI in hiring decisions should be aware of these issues in order to make informed and ethical decisions about not only whom to hire, but how.
SOURCES: D. Iliescu, A. Ilie, D. Ispas and A. Ion, ‘Emotional intelligence in personnel selection: applicant reactions, criterion, and incremental validity’, International Journal of Selection and Assessment, September 2012, pp. 347–58; R. Sharma, ‘Measuring social and emotional intelligence competencies in the Indian context’, Cross Cultural Management 19, 2012, pp. 30–47; and S. Sharma, M. Gangopadhyay, E. Austin and M. K. Mandal, ‘Development and validation of a situational judgment test of emotional intelligence’, International Journal of Selection and Assessment, March 2013, pp. 57–73.
EtHicAl cHoicE
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Emotions and moods chapter 5
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SummaryEmotions and moods are similar in that both are affective in nature. But they are also different—moods are more general and less contextual than emotions. And events do matter. The time of day and day of the week, stressful events, social activities and sleep patterns are some of the factors that influence emotions and moods. Emotions and moods have proven relevant for virtually every OB topic we study, and they have implications for managerial practice.
implications for managers• To foster effective decision making, creativity and motivation in employees, model positive
emotions and moods as much as is authentically possible.
• Provide positive feedback to increase the positivity of employees.
• In the service sector, encourage positive displays of emotion, which make customers feel more positive and thus improve customer service interactions and negotiations.
• Regulate your intense emotional responses to an event by recognising the legitimacy of the emotion and being careful to vent only to a supportive listener who isn’t involved in the event.
• Be careful not to ignore co-workers’ and employees’ emotions; don’t assess others’ behaviour as if it were completely rational. As one consultant aptly put it, ‘You can’t divorce emotions from the workplace because you can’t divorce emotions from people.’133 Managers who understand the role of emotions and moods will significantly improve their ability to explain and predict their co-workers’ and employees’ behaviour.
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valuesIs capital punishment right or wrong? If a person enjoys being powerful, is that good or bad? The answers to these questions are value-laden. Some might argue that capital punishment is right because it is the right punishment for crimes such as murder and treason. Others might argue, just as strongly, that no government has the right to take anyone’s life.
Values represent basic convictions that ‘a specific mode of conduct or end-state of existence is personally or socially preferable to an opposite or a converse mode of conduct or end-state of existence’.61 They contain a judgmental element in that they carry an individual’s ideas as to what is right, good or desirable. Values have both content and intensity attributes. The content attribute says that a mode of conduct or end-state of existence is important. The intensity attribute specifies how important it is. When we rank an individual’s values in terms of their intensity, we obtain that person’s value system. All of us have a hierarchy of values that forms our value system. We find it in the relative importance we assign to values such as freedom, pleasure, self-respect, honesty, obedience and equality.
Are values fluid and flexible? Generally speaking, no. They tend to be relatively stable and enduring.62 A significant portion of the values we hold is established in our early years—by parents, teachers, friends and others. As children, we are told that certain behaviours or outcomes are always desirable or always undesirable, with few grey areas. You were never taught to be just a little bit honest or a little bit responsible, for example. It is this absolute, or ‘black-or-white’, learning of
Define values, demonstrate the importance of values, and contrast terminal and instrumental values.
5
values Basic convictions that a specific mode of conduct or end-state of existence is personally or socially preferable to an opposite or a converse mode of conduct or end-state of existence.
value system A hierarchy based on a ranking of an individual’s values in terms of their intensity.
is the personality profile of an entrepreneur the same across different countries?
What is an entrepreneurial personality? Recent research has provided some answers, and some interesting insights into how well this profile translates across regions and countries. The personality profile of an entrepreneur is well represented in one study by a constellation of the Big Five traits, with high scores on extraversion, conscientiousness and openness, and low scores on agreeableness and neuroticism.
Another recent study suggests there are more differences within than between countries on the entrepreneurial personality. This study constructed a personality profile of the entrepreneurial personality from the Big Five traits and then analysed large samples of individuals from the United States, the United Kingdom and Germany.
In Germany, individuals in Berlin and Hamburg scored the highest on the entrepreneurial personality profile. In the United Kingdom, East England and London scored highest. In the United States, there were differences across both cities and states. Of the 15 largest US cities, Miami–Fort Lauderdale, Seattle–Tacoma and Atlanta scored highest on the entrepreneurial personality profile. Among the states, Colorado, Utah and the District of Columbia scored highest.
Within each country, the study found that the entrepreneurial personality profile correlated with the region’s or city’s level of entrepreneurial activity, as measured by the percentage of the population trying to start new businesses, the proportion of businesses less than 3.5 years old and the number of individuals who were self-employed. These results suggest there is an entrepreneurial personality profile; it correlates with actual entrepreneurial activity across countries; and within each country, regional and metropolitan differences exist in both the personality profile and entrepreneurial activity.
Of course, one limitation of these three studies is their Western locations. It would be interesting to see whether the same pattern holds in India and China.
SOURCE: Based on M. Obschonka, E. Schmitt-Rodermund, R. K. Silbereisen, S. D. Gosling and J. Potter, ‘The regional distribution and correlates of an entrepreneurship-prone personality profile in the United States, Germany, and the United Kingdom: a socioecological perspective’, JournalofPersonalityandSocialPsychology105, no. 1, 2013, pp. 104–22.
gloBAlisAtion
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ETHICAL CHOICE boxes are based on real business scenarios and situations that have posed an ethical dilemma.
GLOBALISATION boxes enlighten students on international OB practice.
SUMMARY AND IMPLICATIONS FOR MANAGERS sections offer a concise summary of the key themes in each chapter.
GUIDED TOUR
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