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San Diego State University
diversity of Florida
Pearson Education International
Preface xxiii
1On
UK7/Z
( 36
The Importance of Interpersonal Skills 38
What Managers Do 39
Management Functions 40 ° Management Roles 40 ° ManagementSkills 42 ° Effective Versus Successful Managerial Activities 42 ° A Review ofthe Manager's Job 44
Enter Organizational Behavior 44
Complementing Intuition with Systematic Study 45
Disciplines That Contribute to the OB Field 47
Psychology 47 ° Social Psychology 48 ° Sociology 49 ° Anthropology 49
There Are Few Absolutes in OB 50
Challenges and Opportunities for OB 50Responding to Globalization 50 ° Managing WorkforceDiversity 52 ° Improving Quality and Productivity 55 ° Improving CustomerService 55 ° Improving People Skills 56 ° Stimulating Innovation andChange 56 ° Coping with "Temporariness" 57 ° Working in NetworkedOrganizations 57 ° Helping Employees Balance Work-LifeConflicts 58 ° Creating a Positive Work Environment 59 ° ImprovingEthical Behavior 60
Coming Attractions: Developing an OB Model 60
An Overview 60 ° The Dependent Variables 61 ° The IndependentVariables 65 ° Toward a Contingency OB Model 66
Global Implications 68
Summary and Implications for Managers 68
Self-Assessment Library How Much Do I Know about Organizational Behavior? 38
Myth or Science? "Preconceived Notions Versus Substantive Evidence" 46
OB in the News Other Disciplines Make Use of OB Concepts 49
International OB Transfer Pricing and International Corporate Deviance 64
Point/Counterpoint In Search of the Quick Fix 69
Questions for Review 70Experiential Exercise 70Ethical Dilemma 71Case Incident 1 "Data Will Set You Free". 71 .Case Incident 2 Workplace Violence 72
Contents
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Ability 78Intellectual Abilities 79 ° Physical Abilities 81
Biographical Characteristics 82Age 82 ° Gender 84 ° Race 85 ° Other Biographical Characteristics:Tenure, Religion, Sexual Orientation, and Gender Identity 85
Learning 88
A Definition of Learning 88 ° Theories of Learning 89 ° Shaping: AManagerial Tool 92
Global Implications 98
Intellectual Abilities 98 ° Biographical Characteristics 98 ° Learning 99
Summary and Implications for Managers 99
Self-Assessment Library What's My Attitude Toward Older People? 78
International OB The Benefits of Cultural Intelligence 80
OB in the News Are You More Biased Than You Think? 86
Myth or Science? "You Can't Teach an Old Dog New Tricks!" 92
Self-Assessment Library How Good Am I at Disciplining Others? 93
Point/Counterpoint All Human Behavior Is Learned 100
Questions for Review 101Experiential Exercise 101Ethical Dilemma 101Case Incident 1 The Flynn Effect 102Case Incident 2 Professional Sports: Rewarding and Punishing the Same Behavior? 103
Chapter 3
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106Attitudes 109
What Are the Main Components of Attitudes? 109 ° Does Behavior AlwaysFollow from Attitudes? 110 ° What Are the Major Job Attitudes? 113
Job Satisfaction 117
Measuring Job Satisfaction 117 ° How Satisfied Are People in TheirJobs? 118 ° What Causes Job Satisfaction? 118 ° The Impact of Satisfied andDissatisfied Employees on the Workplace 119
Global Implications 125Is Job Satisfaction a U.S. Concept? 125 ° Are Employees in Western CulturesMore Satisfied with Their Jobs? 125
Summary and Implications for Managers 126
Self-Assessment Library How Satisfied Am I with My Job? 108
International OB Chinese Employees and Organizational Commitment 114
Contents
I /r\ ) y) Self-Assessment Library Am I Engaged? 116n T 7 / 7 OB in the News Why Is Job Satisfaction Falling? 117
Myth or Science? "Happy Workers Are Productive Workers" 120Point/Counterpoint Managers Can Create Satisfied Employees 127
Questions for Review 128Experiential Exercise 128Ethical Dilemma 129Case Incident 1 Albertsons Works on Employee Attitudes 129Case Incident 2 Long Hours, Hundreds of E-Mails, and No Sleep: Does This Sound Like aSatisfying Job? 130
Chapter 4Personality and Values 136Personality 138
What Is Personality? 139 ° The Myers-Briggs Type Indicator 141 ° The BigFive Personality Model 142 ° Other Personality Traits Relevant to OB 145
Values 151
The Importance of Values 151 ° Terminal Versus InstrumentalValues 151 ° Generational Values 153
Linking an Individual's Personality and Values to the Workplace 155Person-Job Fit 155 ° Person-Organization Fit 157
Global Implications 157Personality 157 ° Values 158
Summary and Implications for Managers 161
|. fa ) jy Self-Assessment Library Am I a Narcissist? 138I LL / / 7 Myth or Science? "Entrepreneurs Are a Breed Apart" 149
International OB A Global Personality 150OB in the News Are U.S.Values Different? 155Point/Counterpoint Traits Are Powerful Predictors of Behavior 162
Questions for Review 163Experiential Exercise 163Ethical Dilemma 163Case Incident 1 The Rise of the Nice CEO? 164Case Incident 2 A Diamond Personality 165
Decision Making 170What Is Perception? 173
Factors That Influence Perception 173
Person Perception: Making Judgments About Others 174
Attribution Theory 175 ° Frequently Used Shortcuts in JudgingOthers 176 ° Specific Applications of Shortcuts in Organizations 179
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The Link Between Perception and Individual Decision Making 180
Decision Making in Organizations 181The Rational Model, Bounded Rationality, and Intuition 181 ° CommonBiases and Errors in Decision Making 184
Influences on Decision Making: Individual Differences and OrganizationalConstraints 187
Individual Differences 188 ° Organizational Constraints 189
What About Ethics in Decision Making? 190Three Ethical Decision Criteria 191 ° Improving Creativity in DecisionMaking 192
Global Implications 194
Summary and Implications for Managers 196
| ^ ^ £> Self-Assessment Library What Are My Gender Role Perceptions? 173
I Ik 7 / 7 International OB Can Negative Perceptions Dampen International BusinessRelationships? 178
p-gr^vs. Myth or Science? "No One Thinks They're Biased" 186
|. ^- • > y> Self-Assessment Library Am I a Deliberate Decision Maker? 187
I IL / / 7 OB in the News Google and the Winner's Curse 188
r-g-\^ Self-Assessment Library How Creative Am I? 194
1 /^ >7> Point/Counterpoint When in Doubt, Do! 198
UK7/7Questions for Review 199Experiential Exercise 199Ethical Dilemma 200Case Incident 1 Natural Disasters and the Decisions That Follow 200Case Incident 2 Whistle-Blowers: Saints or Sinners? 201
otivation Concepts 206Defining Motivation 209Early Theories of Motivation 209
Hierarchy of Needs Theory 210 ° Theory X and Theory Y 211 ° Two-FactorTheory 212 ° McClelland's Theory of Needs 214
Contemporary Theories of Motivation 215Cognitive Evaluation Theory 216 ° Goal-Setting Theory 219 ° Self-EfficacyTheory 222 ° Reinforcement Theory 225 ° EquityTheory 226 ° Expectancy Theory 231
Integrating Contemporary Theories of Motivation 233
Global Implications 235
Summary and Implications for Managers 236
Self-Assessment Library How Confident Am I in My Abilities to Succeed? 208
Myth or Science? "Women Are More Motivated to Get Along, and Men Are MoreMotivated to Get Ahead" 212
OB in the News Paying Employees Not to Work 216
International OB How Managers Evaluate Their Employees Depends on Culture 218
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' > Self-Assessment Library What Are My Course Performance Goals? 221
I '[i, //7 Point/Counterpoint Failure Motivates! 238
Questions for Review 239Experiential Exercise 239Ethical Dilemma 239Case Incident 1 DoU.S.WorkersTivetoWork"? 240Case Incident 2 Bullying Bosses 240
Chapter 7
to Applications 246Motivating by Job Design:The Job Characteristics Model 249
The Job Characteristics Model 249 • How Can Jobs Be Redesigned? 251• Alternative Work Arrangements 255 • Ability and Opportunity 258
Employee Involvement 259
Examples of Employee Involvement Programs 259 • Linking EmployeeInvolvement Programs and Motivation Theories 261
Using Rewards to Motivate Employees 261
What to Pay: Establishing a Pay Structure 262 ° How to Pay: RewardingIndividual Employees Through Variable-Pay Programs 262 • FlexibleBenefits: Developing a Benefits Package 267 ° Intrinsic Rewards: EmployeeRecognition Programs 268
Global Implications 270
Summary and Implications for Managers 272
Self-Assessment Library What's My Job's Motivating Potential? 248
Myth or Science? "Everyone Wants a Challenging Job" 253
OB in the News Motivating with Performance Reviews 267
International OB Cultural Differences in Job Characteristics and Job Satisfaction 271
Point/Counterpoint Praise Motivates 274
Questions for Review 275Experiential Exercise 275Ethical Dilemma 276Case Incident 1 Reducing Travel Costs at Applebee's 276Case Incident 2 Thanks for Nothing 277
Chapter 8Emotions and Moods 282What Are Emotions and Moods? 285
The Basic Emotions 286 • The Basic Moods: Positive and Negative Affect 287• The Function of Emotions 288 ° Sources of Emotions and Moods 290
Emotional Labor 294
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Affective Events Theory 296
Emotional Intelligence 298
The Case for El 298 ° The Case Against El 300
OB Applications of Emotions and Moods 301
Selection 301 « Decision Making 301 • Creativity 302 • Motivation 302e Leadership 302 ° Negotiation 303 • Customer Service 303 • JobAttitudes 304 e Deviant Workplace Behaviors 304 • How Managers CanInfluence Moods 304
Global Issues 305
Summary and Implications for Managers 306
Self-Assessment Library How Are You Feeling Right Now? 284
Self-Assessment Library What's My Affect Intensity? 290
Myth or Science? "People Can't Accurately Forecast Their Own Emotions" 292
International OB Emotional Recognition: Universal of Culture Specific? 294
Self-Assessment Library What's My Emotional Intelligence Score? 300
OB in the News Crying at Work Gains Acceptance 305
Point/Counterpoint The Costs and Benefits of Organizational Display Rules 307
Questions for Review 308Experiential Exercise 308Ethical Dilemma 308Case Incident 1 The Upside of Anger? 309Case Incident 2 Abusive Customers Cause Emotions to Run High 310
Chapter 9
316
Defining and Classifying Groups 318
Stages of Group Development 320
The Five-Stage Model 320 ° An Alternative Model for Temporary Groupswith Deadlines 321
Group Properties: Roles, Norms, Status, Size and Cohesiveness 322
Group Property 1: Roles 323 ° Group Properties 2 and 3: Norms andStatus 326 ° Status 331 ° Group Property 4: Size 333 • Group Property 5:Cohesiveness 335
Group Decision Making 336
Groups Versus the Individual 336 ° Groupthink andGroupshift 338 ° Group Decision-Making Techniques 340
Global Implications 343
Summary and Implications for Managers 344
Self-Assessment Library Do I Have a Negative Attitude Toward Working in Groups? 318
Self-Assessment Library Do I Trust Others? 326
Contents 13
International OB Group Cohesiveness Across Cultures 336
Myth or Science? "Are Two Heads Better Than One?" 337
OB in the News Groupthink for an Enron Jury? 339
Point/Counterpoint All Job Should Be Designed Around Groups 346
Questions for Review 347Experiential Exercise 347Ethical Dilemma 348
. Case Incident 1 "If Two Heads Are Better Than One, Are Four Even Better?" 349Case Incident 2 The Dangers of Groupthink 349
Chapter 10Understanding Work Teams 354Why Have Teams Become So Popular? 356
Differences Between Groups and Teams 357
Types of Teams 358
Problem-Solving Teams 358 ° Self-Managed Work Teams 358 • Cross-Functional Teams 359 • Virtual Teams 360 • Creating EffectiveTeams 360 • Context: What Factors Determine Whether Teams AreSuccessful 362 • Team Composition 364 ° Work Design 368 ° TeamProcesses 369
Turning Individuals into Team Players 371
Beware! Teams Aren't Always the Answer 373
Global Implications 373
Summary and Implications for Managers 374
Self-Assessment Library How Good Am I at Building and Leading
a Team? 356
International OB Global Virtual Teams 361
OB in the News Surgical Teams Lack Teamwork 363
Myth or Science? "Old Teams Can't Learn New Tricks" 368
Self-Assessment Library What Is My Team Efficacy? 370
Point/Counterpoint SportsTeams Are Good Models for Workplace Teams 375
Questions for Review 376Experiential Exercise 376Ethical Dilemma 376Case Incident 1 Teamwork: One Company's Approach to High Performance 377Case Incident 2 Team-Building Retreats 378
382
Functions of Communication 385
The Communication Process 386
Direction of Communication 387
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Downward Communication 387 ° Upward Communication 388 • LateralCommunication 389
Interpersonal Communication 389
Oral Communication 389 ° Written Communication 390 • NonverbalCommunication 391
Organizational Communication 392
Formal Small-Group Networks 392 ° The Grapevine 393 • ElectronicCommunications 394 ° Knowledge Management 398
Choice of Communication Channel 400
Barriers to Effective Communication 402
Filtering 402 ° Selective Perception 402 ° InformationOverload 402 ° Emotions 403 ° Language 403 • CommunicationApprehension 404 «> Gender Differences 404 <» "Politically Correct"Communication 404
Global Implications 406
Summary and Implications for Managers 409
Self-Assessment Library Am I a Gossip? 385Myth or Science? "People Are Good at Catching Liars at Work" 390OB in the News Starbucks'Great Communicator 399International OB Lost in Translation? 407
| ^ )*y> Self-Assessment Library How Good Are My Listening Skills? 409I \k//7 Point/Counterpoint Keep It a Secret 410
Questions for Review 411Experiential Exercise 411Ethical Dilemma 412Case Incident 1 Dianna Abdala 412Case Incident 2 Do You Need a Speech Coach? 413
Chapter 12Basic Approaches to Leadership 416What Is Leadership? 419
Trait Theories 420
Behavioral Theories 422
Ohio State Studies 423 ° University of Michigan Studies 424 e Summary ofTrait Theories and Behavioral Theories 424
Contingency Theories: Fiedler Model and Situational Leadership Theory 425
Fiedler Model 426 ° Hersey and Blanchard's Situational Theory 429 •Path-Goal Theory 430 ° Path-Goal Variables and Predictions 431 •Summary of Contingency Theories 432
Leader-Member Exchange (LMX) Theory 432
Decision Theory: Vroom and Yetton's Leader-Participation Model 434
Global Implications 435
Summary and Implications for Managers 436
Self-Assessment Library What's My Leadership Style? 418
Contents 15
| : A, ) y> OB in the News Bad Bosses Abound 421
I. Liz. //7 Myth or Science? "Narcissists Make Better Leaders" 422
Self-Assessment Library What's My LPC Score? 426
International OB Cultivating an International Perspectives Necessity for Leaders 435
Point/Counterpoint Leaders Are Born, Not Made 438
Questions for Review 439Experiential Exercise 439Ethical Dilemma 439Case Incident 1 Moving from Colleague to Supervisor 440Case Incident 2 The Kinder, Gentler Leader? 440
Chapter 13
in Leadership 444Inspirational Approaches to Leadership 446Charismatic Leadership 447 ° Transformational Leadership 452
Authentic Leadership: Ethics and Trust Are the Foundationof Leadership 456What Is Authentic Leadership? 456 ° Ethics and Leadership 457 • What IsTrust? 457 «> Trust and Leadership 458 ° Three Types of Trust 459 «» BasicPrinciples of Trust 461
Contemporary Leadership Roles 462Mentoring 462 ° Self-Leadership 464 ° Online Leadership 465
Challenges to the Leadership Construct 466Leadership as an Attribution 466 ° Substitutes for and Neutralizers ofLeadership 468
Finding and Creating Effective Leaders 469
Selecting Leaders 469 ° Training Leaders 470
Global Implications 471
Summary and Implications for Managers 472
Self-Assessment Library How Charismatic Am I? 446
) Self-Assessment Library Am I an Ethical Leader? 457
|; [i, / / 7 Myth or Science? "Men Make Better Leaders Than Women" 464
International OB Cultural Variation in Charismatic Attributions 467
OB in the News Before and After 468
Point/Counterpoint Keep Leaders on a Short Leash 473
Questions for Review 474Experiential Exercise 474Ethical Dilemma 475Case Incident 1 The Making of a Great President 475Case Incident 2 Generation Gap: Mentors and Proteges 476
• • • /
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Chapter 14Power and Politics 482A Definition of Power 485
Contrasting Leadership and Power 485
Bases of Power 486
Formal Power 486 ° Personal Power 486 ° Which Bases of Power Are MostEffective? 487
Dependency: The Key to Power 488
The General Dependency Postulate 488 ° What Creates Dependency? 489
Power Tactics 490
Sexual Harassment: Unequal Power in the Workplace 493
Politics: Power in Action 495
Definition of Organizational Politics 495 ° The Reality of Politics 496
Causes and Consequences of Political Behavior 497
Factors Contributing to Political Behavior 497 ° How Do People Respondto Organizational Politics? 500 ° Impression Management 503
The Ethics of Behaving Politically 505
Global Implications 506
Politics Perceptions 506 ° Preference for Power Tactics 506 ° Effectivenessof Power Tactics 507
r—?3-\v\ Summary and Implications for Managers 507
I Gs > D Self-Assessment Library Is My Workplace Political? 484
Z 7 International OB Influence Tactics in China 492
Myth or Science? "Power Breeds Contempt" 497
I /a > X> Self-Assessment Library How Good Am I at Playing Politics? 503
// OB in the News Excuses Are Everywhere 505
Point/Counterpoint Managing Impressions is Unethical 508
Questions for Review 509Experiential Exercise 509Ethical Dilemma 510Case Incident 1 Dressing for Success 510Case Incident 2 The Politics of Backstabbing 511
Chapter 15Conflict and Negotiation 516A Definition of Conflict 518
Transitions in Conflict Thought 519
The Traditional View of Conflict 519 ° The Human Relations View ofConflict 520 ° The Interactionist View of Conflict 520
The Conflict Process 520
Stage I: Potential Opposition or Incompatibility 520 ° Stage II: Cognitionand Personalization 523 ° Stage III: Intentions 523 ° Stage IV:Behavior 525 ° Stage V: Outcomes 526
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Negotiation 529
Bargaining Strategies 530 ° The Negotiation Process 533 ° IndividualDifferences in Negotiation Effectiveness 535 ° Third-Party Negotiations 537,
Global Implications 538
Conflict and Culture 538 ° Cultural Differences in Negotiations 539
Summary and Implications for Managers 539
Self-Assessment Library How Do I Handle Conflict? 518
Myth or Science? "High Starting Bids Lead to High Auction Sales" 532
Self-Assessment Library What's My Negotiating Style? 536
International OB Negotiating Across Cultures 537
OB in the News "Marriage Counseling"for the Top Bosses 538
Point/Counterpoint Conflict Benefits Organizations 542
Questions for Review 543Experiential Exercise 543Ethical Dilemma 544Case Incident 1 David Out-Negotiating Goliath; Apotex and Bristol-Meyers Squibb 544Case Incident 2 Negotiation Puts Hockey in the Penalty Box 545
Chapter 16
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What Is Organizational Structure? 553
Work Specialization 553 ° Departmentalization 555 ° Chain ofCommand 556 ° Span of Control 557 ° Centralization andDecentralization 558 ° Formalization 558
Common Organizational Designs 560
The Simple Structure 560 ° The Bureaucracy 561 ° The MatrixStructure 563
New Design Options 564
The Virtual Organization 564 ° The Boundaryless Organization 566
Why Do Structures Differ? 568
Strategy 568 ° Organization Size 569 ° Technology 570° Environment 571
Organizational Designs and Employee Behavior 573
Global Implications 574
Summary and Implications for Managers 575
Self-Assessment Library Do I Like Bureaucracy? 552
Self-Assessment Library How Willing Am I to Delegate? 558
OB in the News Siemens's Simple Structure—Not 559
International OB Structural Considerations in Multinationals 562
Myth or Science? "People Are Our Most Important Asset" 572
Point/Counterpoint Downsizing Improves Organizational Performance 577
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Questions for Review 578Experiential Exercise 578Ethical Dilemma 578Case Incident 1 Can a Structure Be 7ooFlat? 579Case Incident 2 No Bosses at W. L. Gore & Associates 579
Chapter 17Organizational Culture 582Institutionalization: A Forerunner of Culture 584
What Is Organizational Culture? 585A Definition of Organizational Culture 585 ° Culture Is a DescriptiveTerm 586 ° Do Organizations Have Uniform Cultures? 587 • Strong VersusWeak Cultures 588 ° Culture Versus Formalization 588
What Do Cultures Do? 589
Culture's Functions 589 ° Culture as a Liability 590
Creating and Sustaining Culture 592How a Culture Begins 592 ° Keeping a Culture Alive 593 ° Summary: HowCultures Form 597How Employees Learn Culture 598
Stories 598 ° Rituals 598 ° Material Symbols 598 •• Language 599Creating an Ethical Organizational Culture 600
Creating a Positive Organizational Culture 601
Spirituality and Organizational Culture 604
What Is Spirituality? 604 ° Why Spirituality Now? 604 • Characteristics of aSpiritual Organization 604 ° Criticisms of Spirituality 606
Global Implications 607
Summary and Implications for Managers 607
Self-Assessment Library What's the Right Organizational Culture for Me? 584
International OB A Good Organizational Culture Knows No Boundaries 589
Myth or Science? "People Socialize Themselves" 592
OB in the News Change Jobs, and You May Be in for a Culture Shock 600
Self-Assessment Library How Spiritual Am I? 606
Point/Counterpoint Organizational Cultures Can't Be Changed 609
Questions for Review 610Experiential Exercise 610Ethical Dilemma 611Case Incident 1 Mergers Don't Always Lead to Culture Clashes 611Case Incident 2 Wegmans 612
Chapter 18Human Resource Policiesand Practices 616Selection Practices 619How the Selection Process Works 619 ° Initial Selection 619 ° SubstantiveSelection 621 ° Contingent Selection 623
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Training and Development Programs 624
Types of Training 625 • Training Methods 627 • Individualizing FormalTraining to Fit the Employee's Learning Style 628 • EvaluatingEffectiveness 628
Performance Evaluation 629
Purposes of Performance Evaluation 629 .• What Do WeEvaluate? 629 • Who Should Do the Evaluating? 630 • Methods ofPerformance Evaluation 632 e Suggestions for Improving PerformanceEvaluations 634 • Providing Performance Feedback 635
Managing Diversity in Organizations 636Work-Life Conflicts 637 • Diversity Training 639
Global Implications 639Selection 639 * Performance Evaluation 640
Summary and Implications for Managers 641
Self-Assessment Library How Much Do I Know about Human ResourceManagement (HRM)? 619
Myth or Science? "It's First Impressions That Count" 623
International OB Cultural Training 626
OB in the News The Rise and Fall of Forced Ranking 634
Self-Assessment Library How Good Am I at Giving Performance Feedback? 636
Point/Counterpoint Telecommuting Makes Good Business Sense 643
Questions for Review 644Experiential Exercise 644Ethical Dilemma 644Case Incident 1 Job Candidates Without Strong SAT Scores Need Not Apply 645Case Incident 2 Job Candidates Without Strong SAT Scores Need Not Apply 645
er 19ge
anagement 650Forces for Change 653
Planned Change 654
Resistance to Change 656
Overcoming Resistance to Change 657 ° The Politics of Change 659
Approaches to Managing Organizational Change 659Lewin's Three-Step Model 659 ° Kotter's Eight-Step Plan for ImplementingChange 661 ° Action Research 662 ° Organizational Development 662
Creating a Culture for Change 667
Stimulating a Culture of Innovation 667 • Creating a LearningOrganization 669
Work Stress and Its Management 671
What Is Stress? 671 e Potential Sources of Stress 672 • IndividualDifferences 675 • Consequences of Stress 676 ° Managing Stress 678
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Global Implications 681
Summary and Implications for Managers 682
Self-Assessment Library HowWell Do I Respond to Turbulent Change? 653
Myth or Science? "Meetings Stress People Out" 673
^ Self-Assessment Library How Stressful Is My Life? 676
I I L ' / V 7 ^ ' " * ^ e ^ e w s T n e T e n M o s t Stressful Jobs—And One More That Didn't Make the List 677I IL/V7International OB Coping with Stress: Cultural Differences 678Point/Counterpoint Managing Change Is an Episodic Activity 684
Questions for Review 685Experiential Exercise 685Ethical Dilemma 686Case Incident 1 Innovating Innovation 686Case Incident 2 The Rise of Extreme Jobs 687
Appendix 692
Comprehensive Cases 699
Credits 716
Indexes 719
Glindex 734