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Here is the final with last year answer Final.docx  

I hope you doing well .. i need your help ,, i have my final exam and i had answers for the same questions from last semester ,, i need your help please to paraphrase it ans show it as my original work ,, although i will provide you with the copy of my book if you would like ,, please let me know sir i need it in simple words also ,, because as you know the English language is not my native language ,, So my professor will notice if there is any pilgrims 

organizations_behavior_structure...pdf 

here is my professor hint :

If you use any works to support your answer, be sure to cite the source.  Also le me know what your source of the answer is ( could be class discussion, textbook, presentation, etc). Be sure that your answers are at a graduate level – in other words, the analysis should be based on what we studied this semester and supported.  Your thoughts and opinions are also important, but explain why you think what you think based on what we studied.  There are no length minimums or restrictions.  I accept whatever it takes for you to provide a good answer


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This page intentionally left blank gib12664_fm_i-xxii.indd Page i 10/02/11 1:07 PM user-f494 /208/MHBR213/gib12664_disk1of1/0078112664/gib12664_pagefiles Organizations Behavior, Structure, Processes This page intentionally left blank gib12664_fm_i-xxii.indd Page iii 10/02/11 1:07 PM user-f494 /208/MHBR213/gib12664_disk1of1/0078112664/gib12664_pagefiles Organizations Behavior, Structure, Processes Fourteenth Edition James L. Gibson University of Kentucky John M. Ivancevich University of Houston James H. Donnelly, Jr. University of Kentucky Robert Konopaske Texas State University gib12664_fm_i-xxii.indd Page iv 10/02/11 1:47 PM user-f494 /208/MHBR213/gib12664_disk1of1/0078112664/gib12664_pagefiles ORGANIZATIONS: BEHAVIOR, STRUCTURE, PROCESSES, FOURTEENTH EDITION Published by McGraw-Hill, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY, 10020. Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Previous editions © 2009, 2006, and 2003. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning. Some ancillaries, including electronic and print components, may not be available to customers outside the United States. E This book is printed on recycled, acid-free paper containing 10% postconsumer waste. 1 2 3 4 5 6 7 8 9 0 QDQ/QDQ 1 0 9 8 7 6 5 4 3 2 1 ISBN 978-0-07-811266-9 MHID 0-07-811266-4 Vice President & Editor-in-Chief: Brent Gordon Vice President EDP/Central Publishing Services: Kimberly Meriwether David Editorial Director: Paul Ducham Managing Development Editor: Laura Hurst Spell Editorial Coordinator: Jane Beck Marketing Manager: Jaime Halteman Senior Project Manager: Lisa A. Bruflodt Buyer: Nicole Baumgartner Design Coordinator: Brenda A. Rolwes Media Project Manager: Balaji Sundararaman Cover Design: Studio Montage, St. Louis, Missouri Cover images: Business Women Sitting in an Interview: © Digital Vision RF; Reflection of Office Building: © CORBIS RF; Global Concept: © Brand X Pictures/Jupiter Images RF Typeface: 10/12 Times New Roman Compositor: Aptara®, Inc. Printer: Quad Graphics Photo credits: Ch. 1, Yuri Arcurs/Cutcaster; Ch. 2, Stockbyte/Punchstock Images; Ch. 3, Doug Menuez/ Getty Images; Ch. 4, Royalty-Free/CORBIS; Ch. 5, Stockbyte/Getty Images; Ch. 6, © Digital Vision; Ch. 7, Keith Brofsky/Getty Images; Ch. 8, Digital Vision/Getty Images; Ch. 9, Monica Lau/Getty Images; Ch. 10, Manchan/Getty Images; Ch. 11, © Digital Vision; Ch. 12, Ryan McVay/Getty Images; Ch. 13, Photodisc/Getty Images; Ch. 14, Ryan McVay/Getty Images; Ch. 15, Jon Feingersh/Getty Images; Ch. 16, Digital Vision/Getty Images; Ch. 17, Ryan McVay/Getty Images Library of Congress Cataloging-in-Publication Data Organizations : behavior, structure, processes / James L. Gibson . . . [et al.].—14th ed. p. cm. Includes bibliographical references and index. ISBN 978-0-07-811266-9 (soft cover : alk. paper) 1. Organization. 2. Organizational behavior. 3. Leadership. 4. Organizational effectiveness. I. Gibson, James L. (James Lawrence), 1935HD58.7.G54 2011 658.4—dc22 www.mhhe.com 2010050550 gib12664_fm_i-xxii.indd Page v 10/02/11 1:07 PM user-f494 /208/MHBR213/gib12664_disk1of1/0078112664/gib12664_pagefiles John (Jack) M. Ivancevich (August 16, 1939–October 26, 2009): In Memoriam. Hugh Roy and Lillie Cranz Cullen Chair and Professor of Organizational Behavior and Management, C.T. Bauer College of Business, University of Houston; B.S. from Purdue University, and MBA and DBA from the University of Maryland. This book honors the memory of Jack Ivancevich, our finest friend, colleague, co-author, and cancer confidante. He put his heart and soul into this book for 13 editions and although he is not with us now, we know they are very much present in this 14th edition. Not only does he live on in this book, he lives on in our hearts. He was and remains the driving force of this team of authors. We miss you, Jack, and we hope you are proud of this edition. James L. Gibson and James H. Donnelly, Jr. The management discipline lost a passionate and award-winning educator, and an influential leader with an incomparable work ethic and sense of integrity. Jack led by example, and those of us who were fortunate enough to know him were inspired to work harder and reach higher than we ever thought possible. Jack was committed to higher education and the creation and dissemination of management knowledge. He was comfortable in the classroom and would encourage students to think critically about and apply the concepts and theories of organizational behavior and management to their lives. Jack had an “open door” policy, and spent countless hours helping students and answering their questions. His reputation as a tough teacher was softened by his appreciation for the need of many students to balance a desire for education with a full-time job and family demands. Among Jack’s most valued honors was the Ester Farfel Award for Research, Teaching, and Service Excellence, the highest honor bestowed to a University of Houston faculty member. Complementing his passion for teaching, Jack loved to write books. He tried to write at least 300 days a year, averaging about 1,200 words per day. Over a 40-year period, Jack reached well over a million students by authoring or co-authoring 88 books about various aspects of management and organizational behavior. Currently in its 14th edition, Organizations: Behavior, Structure, Processes (co-authored with James L. Gibson, James H. Donnelly, and Robert Konopaske) continues to be well received by students and instructors alike. In 2005, Organizations received the McGuffey Award from the Text and Academic Authors Association. This award recognizes textbooks and learning materials whose excellence has been demonstrated over time. A sample of Jack’s other textbooks includes Human Resource Management, Organizational Behavior and Management (co-authored with Robert Konopaske and Michael T. Matteson), Global Management and Organizational Behavior (co-authored with Robert Konopaske), Management and Organizational Behavior Classics (co-authored with Michael T. Matteson), Fundamentals of Management: Functions, Behavior, Models (co-authored with James L. Gibson and James H. Donnelly), and Management: Quality and Competitiveness (co-authored with Peter Lorenzi, Steven Skinner, and Philip Crosby). v gib12664_fm_i-xxii.indd Page vi 10/02/11 1:07 PM user-f494 vi /208/MHBR213/gib12664_disk1of1/0078112664/gib12664_pagefiles Dedication Jack was not only an accomplished educator and book author, but also a prolific and highly respected researcher. Well-known for his highly disciplined work ethic, Jack authored or co-authored some 160 research articles, which were published in such journals as Academy of Management Journal, Academy of Management Review, Administrative Science Quarterly, Journal of Applied Psychology, and Harvard Business Review. His research was highly influential and explored a range of management and organizational behavior topics, including job stress, white-collar crime, diversity management, global assignments, job loss, absenteeism, job satisfaction, goal setting, job performance, training method effectiveness, and organizational climate. The diversity of Jack’s research reflected the complex and inter-related nature of management issues in organizations. In 2000, in recognition of publishing a substantial number of refereed articles in Academy of Management journals, Jack was inducted into the Academy of Management’s Journals Hall of Fame as one of the first 33 Charter Members. This is an impressive achievement when considering that in 2000, the Academy of Management had approximately 13,500 members. In addition to teaching, writing books, and conducting research, Jack applied his knowledge of organizational behavior and management to the several leadership positions he held since joining the University of Houston faculty in 1974. In 1975, he was named Chair of the Department of Organizational Behavior and Management, and the following year, Jack became the Associate Dean of Research for the College of Business Administration at UH. In 1979, Jack was awarded the Hugh Roy and Lillie Cranz Cullen Chair of Organizational Behavior and Management, among the most prestigious positions at the University of Houston. From 1988 to 1995, he served as Dean of the University of Houston College of Business Administration. In 1995, Jack was named University of Houston Executive Vice President for Academic Affairs and Provost; a position he held for two years. Through visionary, performance-driven, and principled leadership, Jack left a lasting and meaningful imprint on the entire University of Houston community, including internal constituents, such as fellow administrators, deans, program directors, faculty, staff, and students, as well as external stakeholders, such as legislators, donors, alumni, and area company executives. His accomplishments were even more extraordinary given the fact that Jack continued to teach classes, write books, and publish research articles while holding these myriad leadership positions. Jack made innumerable contributions to all facets of higher education, all of which will be felt for years to come. Perhaps one of Jack’s greatest and longest lasting legacies will be from the many individuals he mentored during his 45 years in higher education. As busy as he was throughout his entire career, Jack was extremely generous with his time and made it a priority to mentor a large number of individuals, including current and former students, junior faculty, colleagues from the publishing industry, and many others. He wanted people to succeed and would do everything he could to help them accomplish their goals. Jack would often invite younger faculty members to collaborate with him on research projects. As a member of 80 doctoral and master’s committees, Jack relished his role as mentor and would spend hours with graduate students, helping and guiding them through the process of conducting original research for their theses or dissertations. Jack was always willing to make phone calls and write detailed letters of recommendation on behalf of his students to help them get hired or later in their careers, get promoted or be awarded tenure. He invested heavily in these individuals and expected hard work and commitment to excellence in return. Many of these former graduate students are professors at universities and colleges throughout the United States and now find themselves mentoring and inspiring their own students. On a personal note, Jack was my mentor, colleague, and friend. Words cannot capture how grateful and honored I feel to have worked so closely with him on several textbooks gib12664_fm_i-xxii.indd Page vii 10/02/11 1:07 PM user-f494 /208/MHBR213/gib12664_disk1of1/0078112664/gib12664_pagefiles Dedication vii and research projects over the past 10 years. We became acquainted in 1999, after Jack agreed to be my dissertation chair at the University of Houston. Given Jack’s stature and commanding presence, I was a little intimidated by him in the beginning but quickly realized he was a “gentle giant” who could switch rapidly between discussions of research, books, academic careers, teaching, and the importance of being a good family man and father, and achieving balance in one’s life. Jack was a great storyteller and especially liked relating tales of his early years in the south side of Chicago. He taught me many things; some lessons were passed along during thoughtful conversations but most came by observing him in action. Jack taught me to take life “head on” with a strong, positive, and can-do attitude, while never losing sight of the importance of being a loving and committed husband and father. He will be sorely missed by all of us who were fortunate to have been touched by his warm friendship and guided by his generous spirit. Jack is survived by his wife of 37 years, Margaret (Pegi) Karsner Ivancevich; son Daniel and wife Susan; daughter Jill and husband David Zacha, Jr.; and grandchildren Kathryn Diane and Amanda Dana Ivancevich, and Hunter David Michael, Hailey Dana, and Hannah Marie Zacha. Jack was preceded in death by his beloved daughter Dana, and by his first wife, Diane Frances Murphy Ivancevich. Robert Konopaske Texas State University gib12664_fm_i-xxii.indd Page viii 10/02/11 1:07 PM user-f494 /208/MHBR213/gib12664_disk1of1/0078112664/gib12664_pagefiles Preface The 14th edition of Organizations: Behavior, Structure, Processes is based on the proposition that managing people, structure, and processes in organizations is a challenging, compelling, and crucial set of tasks. In good as well as in difficult economic times, there is nothing boring about managing organizational behavior. Traditional approaches that worked a decade ago or even a few years ago are currently being questioned, modified, or replaced. This book will provide an opportunity for you to look inside organizations and to develop your own perspective and skills for managing organizational behavior. Your own perspective and approach will serve you in the positions you hold, the challenges you face, and the career choices you make. This edition of the award-winning Organizations: Behavior, Structure, Processes presents theories, research results, and applications that focus on managing organizational behavior in small, as well as large and global organizations. Through the successful history of the book, feedback from students and instructors has suggested that we have succeeded in presenting a realistic view of organizational behavior. A consistent theme throughout the book is that effective management of organizational behavior requires an understanding of theory, research, and practice. Given this theme, we view our task as presenting and interpreting organizational behavior theory and research so that students can comprehend the three characteristics common to all organizations—behavior, structure, and processes—as they are affected by actions of managers. Accordingly, we illustrate how organizational behavior theory leads to research and how both theory and research provide the basic foundation for practical applications in business firms, hospitals, educational institutions, government agencies, and other organizations. As dedicated teachers of organizational behavior and management, we are guided by student needs, feedback, and applications in real-world settings. The 14th edition is current, relevant, and offers a variety of techniques to encourage student involvement. The book challenges students to continue to explore the content areas long after they successfully complete their current course. This self-initiated exploration will result in the continuous learning and inquiry so that students’ knowledge, skills, and competencies are sharpened at each new juncture. We incorporate a clear, student-friendly style and presentation in making the management of organizational behavior insightful, meaningful, and realistic. The writing and presentation style used is successful in motivating students to engage in classroom analysis, discussion, and learning. Special Features This edition emphasizes that the most successful managers in the global economy will be those who can anticipate, adapt, and manage change. The world and economic conditions change continuously, and the ability to manage behavior, structure, and processes in such a rapidly changing environment will be a premier competency. To help students deal with change better, we have included a significant amount of material on transformational leadership, diagnosing and assessing change, communication effectiveness, information technology, diversity, ethics, global management, organizational culture, offshoring, viii gib12664_fm_i-xxii.indd Page ix 10/02/11 1:07 PM user-f494 /208/MHBR213/gib12664_disk1of1/0078112664/gib12664_pagefiles Preface ix teams, and team building. Coverage of some of these topics began a few editions back and is further expanded in this edition. Some of the special content and features in this edition include: • Opening vignettes frame the start of each chapter. Real-world situations, events, facts, or problems bring out upcoming issues covered in the chapter’s content. These are the circumstances that managers of behavior, structure, and processes face every day. • A new feature, OB and Your Career, is intended to help students apply the concepts of this book to improving their careers. A sample of topics include: finding a job that fits with personality and work style; staying motivated after a layoff; being more efficient with time at work; and acquiring international business experience without relocating. • Hundreds of real-world situations, companies, and applied examples were added to illustrate how OB theory and research can be applied to actual work settings. Students prefer to have real examples to support what academics and researchers are proposing or stating. The real world is reflected in the chapter content, the OB at Work features, and the Cases for Analysis. • Student involvement with the World Wide Web is an element designated Taking It to the Net. This is an exercise requiring students to perform a specific assignment on the Internet. Each assignment is associated with a theory, research findings, management applications, an organization, or a topic area covered in the particular chapter. By completing the exercise, the student will become more comfortable with conducting research on the Internet and how classmates addressed the exercise. • Each year organizations become more involved in global business, global joint ventures, and global negotiations. This edition pays particular attention to global and ethical business issues in each chapter. • Diversity needs to be examined and managed in all organizations. Diversity management and issues such as the changing nature of employees in the workplace and generational differences between Gen Y, Gen X, and Baby Boomers are presented, debated, and analyzed throughout the text. • Teams, group dynamics, group decision making, leadership, and managing change are each important topics that are emphasized more in this edition. • One of the characteristics of every one of our new editions is that the latest thinking, debate, and insight be included. Content is updated in such areas as managing layoffs and the survivors of layoffs, the MBA oath of managerial ethics, cultural diversity, workplace spirituality, competitiveness, globalization, offshoring, empowerment, mentoring, organizational learning, organizational justice, performance-based rewards, managing information technology, virtual organizations, strategic decision making, innovation, flexible organizational and job design, contingency theory, ethical decision making, sexual harassment, politics and change, communication skills, feedback, entrepreneurship, and motivation. • Coverage of ethics has been greatly expanded. Ethical issues are covered in many parts of the book as well as in our OB at Work features and end-of-chapter material. As usual, every time we have revised this book there has been an emphasis on responding to the feedback received and the need for updating. The content in the field of organizational behavior and management is constantly changing and expanding. We want to capture currentness along with a sense of history. Thus, the revision work concentrated on using current concepts along with proven approaches to managing behavior within organizations. gib12664_fm_i-xxii.indd Page x 10/02/11 1:07 PM user-f494 x /208/MHBR213/gib12664_disk1of1/0078112664/gib12664_pagefiles Preface Teaching Resources Continuing attention to teaching also went into preparing the supplements for the book. In developing and testing our supplements, we continually focus on needs of both students and instructors. Simply, we want our supplements to add to students’ understanding while simultaneously enabling the instructor to teach an exciting course. The Instructor’s Manual, Test Bank, and PowerPoint® Presentation Software comprise a total system to enhance learning and teaching. All of these supplements as well as additional study tools for students are available at www.mhhe.com/gibson14e. In addition, The Organizational Behavior Video DVD offers a selection of videos that illustrate various key concepts from the book and explore current trends in today’s workplace. Also available for purchase with the text, Premium Content includes access to online Test Your Knowledge and Self-Assessments exercises as well as Manager’s Hot Seat. Manager’s Hot Seat is interactive, video-based software that puts students in the manager’s hot seat, where they apply their knowledge to make decisions on the spot on hot issues such as ethics, diversity, working in teams, and the virtual workplace. Resources to support these exercises and videos are located in the Group and Video Resource Manual. AACSBI International© Guidelines The guidelines of the American Assembly of Collegiate Schools of Business International (AACSBI) guided the preparation of each revision. This book is used across campuses in business schools, social science disciplines, engineering, hotel and restaurant management, education, and public administration. We are pleased and honored by the many adoptions and the loyalty of instructors in many different disciplines. The AACSBI guidelines are used as a starting point for synthesizing management and organizational behavior as fields of study. These guidelines call for more of a crossdiscipline (e.g., psychology, sociology, engineering) approach. A cross-discipline approach is important because organizations are much more than simply business entities and institutions in which managing behavior, structure, and processes across functional areas poses numerous challenges. Framework of This Edition The book is organized and presented in a sequence based on the three characteristics common to all organizations: behavior, structure, processes. This framework has been maintained based on the responses from numerous users of previous editions. However, note that each major part is presented as a self-contained unit and can therefore be presented in whatever sequence the instructor prefers. Some instructors present the chapter on structure first, followed by those on behavior and processes. The text is easily adaptable to these individual preferences. The book concludes with an appendix, which reviews research procedures and techniques used in studying organizational behavior. Reviewers for This Edition Julie Bergh, University of Colorado at Denver; Lea Davis, Dallas County Community College; Jeannie Gaines, Brenau University; Bruce Gillies, California Lutheran University; David Leuser, Plymouth State University; Robert Steel, University of Michigan at Ann Arbor; James T. Ziegenfuss, Pennsylvania State University. gib12664_fm_i-xxii.indd Page xi 10/02/11 1:07 PM user-f494 /208/MHBR213/gib12664_disk1of1/0078112664/gib12664_pagefiles Preface xi Reviewers of Previous Editions Mel Minarik, University of Nevada-Reno; Dr. Norma Friedman, Indiana Institute of Technology; Consuelo M. Ramirez, University of Texas at San Antonio; Berrin Erdogan, Portland State University; Thomas J. Callahan, University of Michigan–Dearborn; and Robert P. Steel, University of Michigan–Dearborn. Allan E. Pevoto, St. Edward’s University; Robin C. Smith, Tarleton State University; David J. Cherrington, Brigham Young University; Mark Fichman, Carnegie-Mellon University; Harry E. Stucke, Long Island University; S. Stephen Vitucci, Tarleton State University; Courtney Hunt, Northern Illinois University; Macgorine A. Cassell, Fairmont State College; James W. FairfieldSonn, University of Hartford; Mitchell J. Hartson, Florida Institute of Technology; Mary Giovannini, Truman State University; Monty L. Lynn, Abilene Christian University; Jeffrey Glazer, San Diego State University; Eugene H. Hunt, Virginia Commonwealth University; William D. Murry, State University of New York–Binghamton; Stanley J. Stough, Southeast Missouri State University; William E. Stratton, Idaho State University; Harold Strauss, University of Miami; Harry A. Taylor, Capitol College; Betty Velthouse, University of Michigan–Flint; Diana Ting Liu Wu, Saint Mary’s College of California; Peter Lorenzi, Loyola College; Dr. Barry Friedman, State University of New York– Oswego; R. Andrew Schaffer, North Georgia College & State University; Paul Lakey, Abilene Christian University; and Andrzej Wlodarczyd, Lindenwood University. James L. Gibson John M. Ivancevich James H. Donnelly, Jr. Robert Konopaske gib12664_fm_i-xxii.indd Page xii 10/02/11 1:07 PM user-f494 /208/MHBR213/gib12664_disk1of1/0078112664/gib12664_pagefiles Brief Contents Preface PART FOUR viii The Structure and Design of Organizations 367 PART ONE Introduction 1 1 Managing Effective Organizations 2 2 Organizational Culture 29 3 Managing Globally 13 Work Design 14 Organization Structure 396 368 PART FIVE 55 The Processes of Organizations 429 PART TWO 15 Managing Communication Behavior within Organizations: The Individual 85 16 Decision Making 17 Managing Organizational Change and Learning 487 4 Individual Behavior and Differences 5 Motivation: Background and Theories 123 6 Motivation: Organizational Applications 156 7 Managing Workplace Stress 86 Procedures and Techniques for Studying Organizations: Behavior, Structure, Processes 521 193 Behavior within Organizations: Groups and Interpersonal Influence 227 Group and Team Behavior 9 Conflict and Negotiation 228 Power and Politics 11 Leadership: Fundamentals 12 Leadership: Emerging Perspectives GLOSSARY 534 ENDNOTES 543 NAME/COMPANY INDEX SUBJECT INDEX 261 10 xii 462 APPENDIX PART THREE 8 430 290 312 340 605 595 gib12664_fm_i-xxii.indd Page xiii 11/02/11 5:23 PM user-f494 /208/MHBR213/gib12664_disk1of1/0078112664/gib12664_pagefiles Contents Preface viii Summary of Key Points 25 Discussion and Review Questions 26 Taking It to the Net: Traditional versus New Economy Comparison 27 CASE FOR ANALYSIS: McDonald’s Attempting to Regain Its Effectiveness? 27 PART ONE INTRODUCTION 1 Chapter 1 Managing Effective Organizations 2 Global Account Managers: Multiple Skills Are Needed 3 OB AT WORK: Putting People First 5 Studying Organizational Behavior 5 Organizational Behavior Follows Principles of Human Behavior 6 Organizations Are Social Systems 6 Multiple Factors Shape Organizational Behavior 6 Structure and Processes Affect Organizational Behavior and the Emergent Culture 8 The Blending of the Art and Science of Organizational Behavior 8 OB AND YOUR CAREER: Research and Managers: Perfect Together! 9 A Model for Managing Organizations: Behavior, Structure, and Processes 9 The Organization’s Environment 9 Behavior within Organizations 10 OB AT WORK: Raising the Bar on Managerial Ethics 12 The Structure and Design of Organizations The Process of Organizations 13 12 29 Nike’s Culture Activists Attempt to Dampen Growth 30 Organizational Culture 31 Organizational Culture Defined 31 OB AND YOUR CAREER: New Job? Learn the Culture 32 OB AT WORK: Pfizer 33 Organizational Culture and Societal Value Systems 33 Organizational Culture and Its Effects 34 OB AT WORK: Five Best Places to Work Creating Organizational Culture 35 Types of Culture 37 Organizational Subcultures 38 Merging Cultures 38 Influencing Culture Change 39 Organizational Culture and Spirituality Socialization and Culture 42 Socialization Stages 43 Characteristics of Effective Socialization Perspectives on Effectiveness 15 The Nature of Managerial Work 16 35 41 45 Effective Anticipatory Socialization 45 Effective Accommodation Socialization 46 Effective Role Management Socialization 47 Mentors and Socialization 47 Planning Effective Performance 17 Organizing Effective Performance 17 OB AT WORK: Another Day as a Manager 18 Leading Effective Performance 18 Controlling Effective Performance 19 Three Ways to Think about Effectiveness Chapter 2 Organizational Culture OB AT WORK: Mentoring Can Go Haywire 48 Socializing a Culturally Diverse Workforce 50 Management’s Ability to Capitalize on Diversity 19 Goal Approach to Effectiveness 20 Systems Theory Approach to Effectiveness 21 Stakeholder Approach to Effectiveness 22 Organizational Change and Learning 24 Managerial Work and the Behavior, Structure, and Processes of Organizations 24 50 Summary of Key Points 51 Discussion and Review Questions 52 Taking It to the Net: One of the Best Firms 52 CASE FOR ANALYSIS: Toyota’s Culture and the “Sticky Pedal” Recall 52 EXPERIENTIAL EXERCISE: Testing National Culture Knowledge 53 xiii gib12664_fm_i-xxii.indd Page xiv 10/02/11 1:07 PM user-f494 xiv /208/MHBR213/gib12664_disk1of1/0078112664/gib12664_pagefiles Contents Chapter 3 Managing Globally PART TWO 55 The Virtual Expatriate 56 Globalization 57 OB AT WORK: Offshoring: Does It Create or Replace Jobs in the Global Marketplace? 58 Global Strategic Skills 60 Team-Building Skills 61 Organization Skills 62 Communication Skills 62 Transfer of Knowledge Skills 62 National Culture 64 History and Culture 64 65 People’s Relationship to Nature 65 Individualism versus Collectivism 65 Time Orientation 65 Activity Orientation 66 Degree of Formality 66 Language 66 Religion 67 Cross-Cultural Research Findings Hofstede’s Research 67 Hofstede-Inspired Research The GLOBE Project 73 Cross-Cultural Transitions Chapter 4 Individual Behavior and Differences A Grown-Up Risk Taker 87 The Basis for Understanding Behavior Individual Differences 90 86 88 Abilities and Skills 90 Demographics 91 OB AT WORK: Communicating in Global Virtual Teams 63 Culture 64 Cultural Dimensions BEHAVIOR WITHIN ORGANIZATIONS: THE INDIVIDUAL 85 67 72 74 Human Resources for International Assignments 75 The Expatriate Manager 75 OB AND YOUR CAREER: Acquire International Experience the “Easy Way” 76 Culture Shock and the Expatriate Manager 78 Training the Expatriate Manager 79 The Global Theme for Organizations: Behavior, Structure, and Process 81 Summary of Key Points 81 Discussion and Review Questions 82 Taking It to the Net: Offshoring: What’s It All About? 82 CASE FOR ANALYSIS: Building a Global Outsourcing Powerhouse 82 EXPERIENTIAL EXERCISE: How Important Is Your Family? 83 EXPERIENTIAL EXERCISE: Expatriate Sources on the Web 84 OB AT WORK: Johnson & Johnson, AT&T, and Coca Cola: Leaders in Diversity Management 93 Individual Psychological Variables 93 Perception 94 Attribution 97 Attribution Errors Attitudes 99 98 OB AT WORK: Is Pay the Most Important Factor? 105 Job Satisfaction Comparison of Individuals in Work Arrangements 106 Job Satisfaction and Customer Satisfaction 106 Personality 107 OB AT WORK: The Myers-Briggs Type Indicator (MBTI) Is Preferred by Managers 110 OB AND YOUR CAREER: Finding a Job that Fits 112 OB AT WORK: Gen Y Employees: Are They Changing the Workplace? 113 Emotional Intelligence 116 OB AT WORK: Emotional Contagion: A Lesson for the Emotionally Intelligent 117 The Psychological Contract 118 Psychological Contract Violations 118 Summary of Key Points 119 Discussion and Review Questions 120 Taking It to the Net: Evaluating Online Self-Tests 121 CASE FOR ANALYSIS: A Potter’s Wheel 121 EXPERIENTIAL EXERCISE: Applying Attribution Theory 121 Chapter 5 Motivation: Background and Theories 123 Motivating Generations of Employees 124 What Is Motivation? 126 The Starting Point: The Individual 127 gib12664_fm_i-xxii.indd Page xv 10/02/11 1:07 PM user-f494 /208/MHBR213/gib12664_disk1of1/0078112664/gib12664_pagefiles Contents xv Motivational Theories: A Classification System Maslow’s Need Hierarchy 130 Selected Need Hierarchy Research Alderfer’s ERG Theory 128 ERG: Limited Research Base 133 Research on Learned Needs 135 136 A Model of Individual Rewards OB AT WORK: Women Managers: Better Motivators than Men? 137 A Synopsis of the Four Content Theories 138 OB AT WORK: Motivating Employees during a Recession 141 Expectancy Theory 141 Terminology 141 Principles of Expectancy Theory Research on Expectancy 144 Management Practices 144 143 Equity Theory 147 OB AND YOUR CAREER: Keep Your Surviving Employees in the Loop 150 Research on and Criticism of Equity Theory 150 Summary of Key Points 151 Discussion and Review Questions 152 Taking It to the Net: Generational Differences 153 CASE FOR ANALYSIS: What Motivates Entrepreneurs? 153 EXPERIENTIAL EXERCISE: Applying Motivation Theory 155 Chapter 6 Motivation: Organizational Applications 156 OB AND YOUR CAREER: Find the Right Job with the Right Rewards 180 180 Flexible Benefits 183 Banking Time Off 184 Skill-Based Pay 184 Gainsharing 185 Kohn’s Criticism of Performance-Based Rewards 186 Summary of Key Points 187 Discussion and Review Questions 188 Taking It to the Net: How about Noncash Rewards? 189 CASE FOR ANALYSIS: Jack Welch of General Electric: A Neutron Bomb or a Motivator? 189 EXPERIENTIAL EXERCISE: Making Choices about Rewards 191 EXPERIENTIAL EXERCISE: Valuing Diversity 192 Chapter 7 Managing Workplace Stress Reward or Punishment: The Saga of Stock Options 157 Learning 158 193 The Need for Work/Life Balance 194 What Is Stress? 195 Organizational Stress: A Model 196 Work Stressors: Individual, Group, and Organizational 198 Social Learning 158 Operant Conditioning 159 Principles of Operant Conditioning 160 Behavior Modification: A Managerial Perspective 162 Individual Stressors 198 OB AT WORK: Monotonous or Underloaded Pain and Stress 200 Research on Reinforcement Theory 164 Criticisms of Behavior Modification 164 OB AT WORK: Feedback Is Motivational Extrinsic Rewards 177 Intrinsic Rewards 178 Reward Systems in High-Performing Organizations 182 145 146 Alternatives to Restore Equity 174 OB AT WORK: Rewarding a Diverse Workforce 176 Extrinsic and Intrinsic Rewards 177 The Interaction of Intrinsic and Extrinsic Rewards Rewards, Turnover, and Absenteeism 181 Rewards and Job Performance 182 Rewards and Organizational Commitment 182 OB AT WORK: Don’t Forget to Consider Nontraditional Rewards 145 Criticisms of Expectancy Theory 167 Reviewing Motivation 173 Organizational Reward Systems 174 135 McClelland’s Learned Needs Theory 166 167 The Goal-Setting Process 168 Goal-Setting Research 168 Criticisms of Goal Setting 172 132 Critique of Herzberg’s Theory A Self-Regulation Model Goal-Setting Theory 130 130 Herzberg’s Two-Factor Theory Behavioral Self-Management 165 Group and Organizational Stressors Nonwork Stressors 202 200 gib12664_fm_i-xxii.indd Page xvi 10/02/11 1:07 PM user-f494 xvi /208/MHBR213/gib12664_disk1of1/0078112664/gib12664_pagefiles Contents Stress Outcomes 202 OB AT WORK: Karoshi: Stress and Death in Japan Individual Outcomes Why People Form Groups 232 The Satisfaction of Needs 232 Proximity and Attraction 233 Group Goals 233 Economics 233 203 203 OB AT WORK: Preventing Burnout Organizational Consequences 206 Stages of Development 206 OB AT WORK: The Costs of Job Stress Stress Moderators 208 Personality 208 Type A Behavior Pattern Social Support 210 207 Characteristics of Groups 209 Stress Prevention and Management 210 Maximizing Person–Environment Fit 211 Organizational Stress Prevention and Management Programs 212 OB AT WORK: The Costs of Job Stress, Part 2 215 Sustaining a Wellness Strategy 217 Individual Approaches to Stress Prevention and Management 217 OB AND YOUR CAREER: Reduce Stress: Be More Efficient with Your Time 218 Summary of Key Points 220 Discussion and Review Questions 220 Taking It to the Net: The Annual Physical Exam 221 CASE FOR ANALYSIS: Stressed Out at Work? Help Is on the Way 221 EXPERIENTIAL EXERCISE: Behavior Activity Profile—A Type A Measure 222 EXPERIENTIAL EXERCISE: Health Risk Appraisal 225 BEHAVIOR WITHIN ORGANIZATIONS: GROUPS AND INTERPERSONAL INFLUENCE 227 Chapter 8 Group and Team Behavior Teams Can Change the World The Invention Team 229 The Twitter Team 229 The Apple Team 229 The Magic of an Idea Team Formal Groups 231 Informal Groups 231 234 235 Structure 235 Status Hierarchy 235 Roles 236 Norms 236 Leadership 238 Cohesiveness 238 OB AT WORK: Groupthink and War Social Loafing 240 242 The Nature and Types of Teams Problem-Solving Teams Virtual Teams 243 243 243 OB AND YOUR CAREER: Want Some International Experience? Get Assigned to a Global Virtual Team 245 Cross-Functional Teams 245 OB AT WORK: The Earliest Skunkworks Skunkworks 246 Self-Directed Work Teams 246 247 Why Teams Are Formed 247 Enhanced Productivity 247 Flattening Organizations 248 Need for Flexibility and Quicker Decisions Workforce Diversity 249 Improved Quality 249 248 OB AT WORK: Group Diversity: Some Points to Consider 250 PART THREE The Meaning of a Group Types of Groups 231 233 The Five-Stage Model 234 The Punctuated Equilibrium Model 228 229 Increased Customer Satisfaction 251 Obstacles to Effective Teams 251 Building Effective Teams 252 Top-Level Commitment and Provision of Clear Goals 252 Management–Employee Trust 252 Willingness to Take Risks and Share Information Time, Resources, and a Commitment to Training 230 230 252 OB AT WORK: Team-Building Pointers (Learning from Geese) 253 Intergroup Behavior and Conflict The Role Concept 254 Multiple Roles and Role Sets 254 Role Perception 255 Role Conflict 255 Results of Role Conflict 256 254 253 gib12664_fm_i-xxii.indd Page xvii 10/02/11 1:07 PM user-f494 /208/MHBR213/gib12664_disk1of1/0078112664/gib12664_pagefiles Contents xvii Summary of Key Points 256 Discussion and Review Questions 257 Taking It to the Net: Team Building 258 Case for Analysis: Leading a Virtual Team Experiential Exercise: Participation in and Observation of Group Processes 259 Chapter 9 Conflict and Negotiation Resolving Group Conflict through Team Building 281 258 261 263 OB AND YOUR CAREER: How Do You Handle Interpersonal Conflict? 264 Dysfunctional Conflict 265 Conflict and Organizational Performance 265 Views on Intergroup Conflict in Practice 266 Intragroup Conflict and Group Productivity 267 Why Intergroup Conflict Occurs 267 Differences in Perceptions 270 Consequences of Dysfunctional Intergroup Conflict 271 Changes within Groups 272 Changes between Groups 272 Managing Intergroup Conflict through Resolution 273 Problem Solving 273 Superordinate Goals 273 Expansion of Resources 273 Avoidance 274 Smoothing 274 Compromise 274 Authoritative Command 275 Altering the Human Variable 275 Altering the Structural Variables 275 Identifying a Common Enemy 275 Managing Intergroup Conflict Through Negotiation 276 Cross-Cultural Negotiations 276 Group Negotiations 277 Prenegotiation Tasks 277 Negotiation Tactics 278 The Effect of Personalities on the Negotiation Process 279 The Role of Trust 280 Alternatives to Direct Negotiations 280 Communication 284 Bringing Outside Individuals into the Group Altering the Organization’s Structure 284 Stimulating Competition 285 269 284 Summary of Key Points 285 Discussion and Review Questions 285 Taking It to the Net: Negotiating Tips 286 CASE FOR ANALYSIS: A Successful Partnership at Ford-Mazda 286 EXPERIENTIAL EXERCISE: The Old Stack Problem 287 Chapter 10 Power and Politics Work Interdependence 268 Differences in Goals 268 OB AT WORK: Interdependence in Sports 282 OB AT WORK: Resolving Conflict through Team Building in a Small Computer Organization 283 Managing Intergroup Conflict through Stimulation 284 How Intergroup Conflict Can Affect an International Startup Team 262 A Realistic View of Intergroup Conflict 263 Functional Conflict Team Building as a Process 282 Management’s Role in Building Teams 290 The Personal Power of Great Business Leaders Power and Authority 291 Interpersonal Power 292 291 Legitimate Power 292 Reward Power 293 Coercive Power 293 Expert Power 293 Referent Power 293 Need for Power 294 OB AND YOUR CAREER: Build Your Interpersonal Power 295 Structural and Situational Power 296 Resources 296 Decision-Making Power 296 Information Power 296 Upward Flow of Power 297 Interdepartmental Power 298 Coping with Uncertainty Centrality 299 Substitutability 300 298 Obedience to Authority 300 Political Strategies and Tactics Research on Politics 302 302 OB AT WORK: The Neighborhood Bully Is Back—At Your Workplace 303 Impression Management Playing Politics 305 Ethics, Power, and Politics 304 307 gib12664_fm_i-xxii.indd Page xviii 10/02/11 1:07 PM user-f494 xviii /208/MHBR213/gib12664_disk1of1/0078112664/gib12664_pagefiles Contents OB AT WORK: Can Business Schools Teach Ethics? 308 Summary of Key Points 308 Discussion and Review Questions 309 Taking It to the Net: Office Politics 101 309 CASE FOR ANALYSIS: Terry’s Dilemma 310 EXPERIENTIAL EXERCISE: Office Diplomacy: The Dos and Don’ts 311 Chapter 11 Leadership: Fundamentals 312 Nature of the Vroom-Yetton-Jago Model Application of the New Model 346 Validity of the Vroom-Jago Model 347 International Research 347 Limitations of the Model 347 349 351 Defining Charismatic Leadership 352 Conger’s Model 352 What Constitutes Charismatic Leadership Behavior? 352 Two Types of Charismatic Leaders 352 319 OB AT WORK: Ethical Leadership during a Crisis 354 Transactional and Transformational Leadership 355 Job-Centered and Employee-Centered Leadership 319 Transactional Leadership 355 Transformational Leadership 356 OB AND YOUR CAREER: Becoming More Employee-Centered 320 Initiating Structure and Consideration Leadership 320 OB AT WORK: Indian Business Leaders Focus on Their People 322 Comparisons of Effective Leadership Behavior Theories 322 323 Contingency Leadership Model 324 Path–Goal Model 328 Hersey-Blanchard Situational Leadership Model 343 Leader’s Attributions 349 Leader’s Perception of Responsibility 349 Attributional Leadership Model 349 Leader Behavior: Cause or Effect? 350 317 The Effects of Situational Differences 341 OB AT WORK: The Roles of Leaders in SelfManaged Teams 346 Charismatic Leadership OB AT WORK: Wanted: Global Leaders 318 The Behaviors of Effective Leaders 340 Leadership Cultures at Successful Companies Vroom-Jago Leadership Model 343 Attribution Theory of Leadership Business Leaders: Born or Made? 313 Leadership Defined 314 Traits That Appear to Identify Leaders 316 Abilities 316 Personality Traits 317 Motivation 317 Synopsis of Trait Theory Chapter 12 Leadership: Emerging Perspectives 331 OB AT WORK: Helping Women Become Leaders 332 Leader–Member Exchange Theory 334 Comparing the Situational Approaches 334 Summary of Key Points 335 Discussion and Review Questions 336 Taking It to the Net: Using Facts, Not Gossip 337 CASE FOR ANALYSIS: A New Leadership Position 337 EXPERIENTIAL EXERCISE: Personal and Group Leadership Hall of Fame 338 EXPERIENTIAL EXERCISE: Leadership Coach: Are Employees BOBs or WOWs? 338 OB AT WORK: A Leader Who Stands Up and Stands Out 357 OB AND YOUR CAREER: Become a Level 5 Leader 358 Substitutes for Leadership 359 Summary of Key Points 361 Discussion and Review Questions 361 Taking It to the Net: Leaders Need Guidance Too! 362 CASE FOR ANALYSIS: Intel Prepares Its Top Leaders 362 EXPERIENTIAL EXERCISE: Vroom-Jago Leadership Style Analysis 364 PART FOUR THE STRUCTURE AND DESIGN OF ORGANIZATIONS 367 Chapter 13 Work Design 368 Designing Jobs to Allow Work/Family Balance 369 Designing Jobs to Enhance Quality of Work Life 370 Work/Family Balance and Job Design 371 gib12664_fm_i-xxii.indd Page xix 10/02/11 1:07 PM user-f494 /208/MHBR213/gib12664_disk1of1/0078112664/gib12664_pagefiles Contents xix OB AT WORK: Job Sharing at Xerox: How Two Employees Made It Happen 373 The Important Concepts of Job Design 374 Job Performance Outcomes 375 Objective Outcomes 375 Personal Behavior Outcomes 375 Intrinsic and Extrinsic Outcomes 375 Job Satisfaction Outcomes 375 Describing Jobs through Job Analysis Job Content 376 Job Requirements 377 Job Context 377 Job Analysis in Different Settings 376 Functional Departmentalization 401 Geographic Departmentalization 403 Product Departmentalization 403 Customer Departmentalization 404 Combined Bases for Departmentalization: The Matrix Organization 404 Span of Control 405 OB AND YOUR CAREER: Tips for Managing Survivors of Layoffs 406 377 Required Contact OB AT WORK: Six Sigma: Cure-All or Destroyer of Innovation? 379 Job Designs: The Results of Job Analysis 379 406 OB AT WORK: The Effects of Downsizing on the Spans of Control of Managers 407 Degree of Specialization 407 Ability to Communicate 407 Delegation of Authority 408 Range and Depth 379 Job Relationships 381 The Way People Perceive Their Jobs 382 Perceived Job Content 382 Job Characteristics 382 Individual Differences 382 Social Setting Differences 383 Designing Job Range: Job Rotation and Job Enlargement 383 Job Rotation 384 Job Enlargement 384 Designing Job Depth: Job Enrichment 385 OB AND YOUR CAREER: The Changing Nature of Jobs in America 388 Teams and Job Design 389 Total Quality Management and Job Design 389 Summary of Key Points 390 Discussion and Review Questions 391 Taking It to the Net: Search for a Good Fit? Online Job Descriptions 392 CASE FOR ANALYSIS: Work Redesign in an Insurance Company 393 EXPERIENTIAL EXERCISE: Conducting a Basic Job Analysis 394 Chapter 14 Organization Structure Designing an Organization Structure 399 Division of Labor 400 Departmental Bases 401 396 Organization Structure and Firm Survival 397 The Concept of Organization Structure 398 Structure as an Influence on Behavior 398 Structure as Recurring Activities 399 Reasons to Decentralize Authority 408 Reasons to Centralize Authority 409 Decision Guidelines 409 Mechanistic and Organic Models of Organization Design 410 The Mechanistic Model 410 The Organic Model 412 Contingency Design Theories 414 Technology and Organizational Design 414 The Classic Study of Technology and Organizational Design 415 Understanding the Relationship between Technology and Structure 416 Environment and Organizational Design 416 The Classic Study of the Relationship between Environment and Organizational Design 416 Environmental Uncertainty and Organizational Design in the Service Sector 418 Understanding the Relationship between Environmental Uncertainty and Structure 419 Environmental Uncertainty, Information Processing, and Adaptive Design Strategies 420 Sociotechnical Systems Theory 420 Structuring Virtual Organizations 421 Summary of Key Points 422 Discussion and Review Questions 423 Taking It to the Net: Virtual Organizational Design 424 CASE FOR ANALYSIS: Defining the Role of a Liaison Officer 424 EXPERIENTIAL EXERCISE: Identifying and Changing Organization Design 427 gib12664_fm_i-xxii.indd Page xx 10/02/11 1:07 PM user-f494 xx /208/MHBR213/gib12664_disk1of1/0078112664/gib12664_pagefiles Contents PART FIVE Simplifying Language 456 Effective Listening 457 THE PROCESSES OF ORGANIZATIONS 429 Chapter 15 Managing Communication 430 Communicating in Global Virtual Teams 431 The Importance of Communication 432 The Communication Process 432 OB AT WORK: Communication Can Make the Difference 433 A Classic Model 434 Nonverbal Messages 436 Communicating across Cultures Words 437 437 OB AND YOUR CAREER: Learning about Different Cultures 438 Space 438 Time 438 Behavior 439 Communicating within Organizations 439 Directions of Communication 439 Communication and Technology 441 Electronic Mail, Messaging, Social Networking, and Blogs 442 Smart Phones 444 Voice-Mail 444 Videoconferencing, Teleconferencing, and e-Meetings/ Collaboration 444 The Grapevine: An Informal Communication Channel 445 Interpersonal Communication Summary of Key Points 458 Discussion and Review Questions 458 Taking It to the Net: Netiquette: Effectively Communicating with E-Mail 459 CASE FOR ANALYSIS: Leigh Randell 459 EXPERIENTIAL EXERCISE: Perceptual Differences 461 446 Interpersonal Styles 447 Interpersonal Strategies 448 Managerial Styles 448 Barriers to Effective Communication 449 Barriers Created by the Sender 449 Barriers Created by the Receiver 451 Barriers Created by the Sender, the Receiver, or Both 452 OB AT WORK: Intranets Improve Internal Communication 454 Improving Communication in an Organization 455 Following Up 455 Regulating Information Flow 455 Using Feedback 455 Empathy 455 Repetition 456 Encouraging Mutual Trust 456 Effective Timing 456 Chapter 16 Decision Making 462 Decision Making: Are You as Good as You Think You Are? 463 Types of Decisions 464 OB AT WORK: Falling in Love with Technology 466 The Decision-Making Process 466 Establishing Specific Goals and Objectives and Measuring Results 467 Identifying Problems 467 Developing Alternatives 468 Evaluating Alternatives 469 Choosing an Alternative 469 Implementing the Decision 470 Control and Evaluation 470 OB AT WORK: Do Good Companies Make Poor Decisions? 471 Behavioral Influences on Individual Decision Making 472 Ethical Decision Making 472 Values 474 Personality 474 Propensity for Risk 475 Potential for Dissonance 476 Escalation of Commitment 477 OB AT WORK: Henry Ford Established Fordlândia (“Ford Land”) in the Amazon! 478 Group Decision Making 478 Individual versus Group Decision Making 479 Techniques for Stimulating Creativity in Group Decision Making 480 OB AND YOUR CAREER: Sparking Your Creativity 481 Summary of Key Points 483 Discussion and Review Questions 483 Taking It to the Net: Can Better Decision Making Be Taught? 484 CASE FOR ANALYSIS: Breaking the Rules 484 EXPERIENTIAL EXERCISE: Lost on the Moon: A Group Decision Exercise 485 gib12664_fm_i-xxii.indd Page xxi 10/02/11 1:07 PM user-f494 /208/MHBR213/gib12664_disk1of1/0078112664/gib12664_pagefiles Contents xxi Chapter 17 Managing Organizational Change and Learning 487 Managing Change Is a Proactive Behavior Learning Principles and Change 489 Change Agents 490 External Change Agents 490 Internal Change Agents 491 External–Internal Change Agents Resistance to Change 488 491 492 APPENDIX Why People Resist Change 492 Reducing Resistance to Change 493 OB AT WORK: Overcoming Resistance to Change by Inclusion 494 A Model for Managing Organizational Change 494 Environmental Forces Internal Forces 496 Summary of Key Points 516 Discussion and Review Questions 517 Taking It to the Net: Monitoring Dramatic Changes 517 CASE FOR ANALYSIS: Bayer’s Major Changes in One Plant 517 EXPERIENTIAL EXERCISE: Alternative Ways to Initiate Change 519 495 Diagnosis of a Problem 497 Alternative Interventions 497 History 521 Experience 523 Science 523 Behavioral Sciences Research and Methods Depth and Approach of Intended Change 498 Identifying Alternative Change Techniques 499 Structural Change 499 Behavioral Change 501 Technological Change 503 Research 523 The Scientific Approach 524 Methods of Inquiry 524 Research Designs OB AT WORK: Technology Change Creates Ethical Issues for Managers 505 Appreciative Inquiry 505 Trends in Organizational Change Procedures and Techniques for Studying Organizations: Behavior, Structure, Processes 521 Sources of Knowledge about Organizations 521 506 OB AT WORK: Snapshots of AI Use and Claims 507 Recognizing Limiting Conditions 509 Overcoming Limiting Conditions 510 Leadership Climate 510 Formal Organization 510 OB AND YOUR CAREER: Managing Change, Step-by-Step 511 Organizational Culture 511 Resistance to Change 511 Implementing and Evaluating the Change 512 The Ethical Issues of Organizational Change 512 The Learning Organization 513 Learning Capabilities and Leadership Learning 516 514 528 One-Shot Design 528 One-Group Pretest–Posttest Design 529 Static-Group Comparison Design 530 Pretest–Posttest Control Group Design 530 Posttest-Only Control Group Design 531 Solomon Four-Group Design 531 Observation and Measurement Observation 531 Interviews 532 Questionnaires 532 Nonreactive Measures Qualitative Research Glossary 534 Endnotes 543 532 532 Name/Company Index Subject Index 531 605 595 523 This page intentionally left blank gib12664_ch01_001-028.indd Page 1 27/01/11 7:25 PM user-f472 P A R T /208/MHBR213/gib12664_disk1of1/0078112664/gib12664_pagefiles O N E Introduction 1. Managing Effective Organizations 2. Organizational Culture 3. Managing Globally gib12664_ch01_001-028.indd Page 2 27/01/11 7:25 PM user-f472 C H A P T E R /208/MHBR213/gib12664_disk1of1/0078112664/gib12664_pagefiles O N E Managing Effective Organizations 2 gib12664_ch01_001-028.indd Page 3 27/01/11 7:25 PM user-f472 /208/MHBR213/gib12664_disk1of1/0078112664/gib12664_pagefiles Chapter 1 Managing Effective Organizations 3 Learning Objectives After completing Chapter 1, you should be able to Define The term organizational behavior. Explain Why organizations need to manage in an effective manner. Identify Why managing workplace behavior in the United States is likely to be different from managing workplace behavior in another country, such as Germany. Compare The goal, systems, and stakeholder approaches to effectiveness. Describe The type of environmental forces that make it necessary for organizations to initiate changes. Global Account Managers: Multiple Skills Are Needed Attracting, retaining, and managing customers in a global marketplace are daunting tasks for even the most astute managers. It is difficult for a company to establish and maintain relationships with customers in their own neighborhood, state, region, or country. In terms of difficulty, the task is multiplied when customers are spread around the world. As globalization matures and grows, there are more opportunities to find and nurture customers. However, some of the traditional jobs, structures, and systems have to be modified. The notion of a global account manager was not a part of organizational infrastructures a decade ago. However, today the global account manager is center stage and growing in stature. The global account manager (GAM) in some cases is in charge of a single customer and all of its global needs. The customer’s needs, schedules, and interests are the top priority of the GAM. Some believe that it takes more than a decade to develop a responsive, effective, and profitable global account management system. Studies of DHL, Siemens, SAP, Marriott International, Microsoft, IBM, and others provide some suggestions of how an effective GAM system evolves. Three stages emerge in effective GAM systems: beginner, springload, and embedded. Beginners identify global accounts, assign managers, and change their structures in terms of communications, decision making, and problem solving to help the GAM succeed. In the springload stage, the GAM works with customers to develop new products and find ways to make the customer more competitive. In the embedded stage, the entire organization has developed a cooperative culture and global orientation. Serving the needs of the global customer is the top priority of the GAM. Microsoft started using GAM around 2000. Today, they focus on multimillion-dollar, global customers that rely heavily on information technology. Although size of the customer’s revenue is important, Microsoft wants to attract leaders in their industry—customers who are willing to openly share information for the development of new products and processes. Other firms develop their own set of criteria for establishing the GAM program. Sources: Adapted from “New Company of the Year,” Financial Times, February 16, 2008, p. 11; Christoph Senn and Axel Thoma, “Global Business: Worldly Wise,” Wall Street Journal Online, March 3, 2007; and Karen R. Polenske, The Economic Geography of Innovation (Cambridge, UK: Cambridge University Press, 2006). Years ago, change was slow, markets were concentrated in a handful of countries, and stability was the rule rather than the exception. Back then, organizational approaches emphasized top-down hierarchy, rules and regulations, and authority rested in the hands of authoritative executives. Ford Motors, Nestlé, General Electric, and IBM—organizational gib12664_ch01_001-028.indd Page 4 27/01/11 7:25 PM user-f472 4 Part One /208/MHBR213/gib12664_disk1of1/0078112664/gib12664_pagefiles Introduction organizations Entities that enable society to pursue accomplishments that can’t be achieved by individuals acting alone. giants that dominated their respective markets—used a rigid hierarchy system from top management to operating-level employees to accomplish their goals. During the past 30 years, many factors in the environment (such as government regulations, information technology, global competitors, union influence, and customer demands and needs) changed, and as a result, organizations needed to make dramatic adjustments in how they managed their operations. Unfortunately, in the 21st century some organizations have failed to change or adapt to their more turbulent environments. This inability to change with the times has decreased their organizational effectiveness. The opening vignette on global account managers illustrates how multiple skills are needed to grow operations globally. Adapting to change and flexibility are the requirements for managing effectively in a globally connected marketplace. This book is about organizations and how they operate effectively in a world that is rapidly changing.1 We will focus our attention throughout this book on people working within organizations or interacting with them from outside. People working together or contributing individually within organizations, large and small, have built pyramids, citystates, spacecraft, running shoes, automobiles, and entire industries. Each of us spends much of our life working for or conducting transactions with organizations—restaurants, universities, doctors’ offices, USAA Financial Services, Amazon.com, Southwest Airlines, United Parcel Service, Target, and the Internal Revenue Service are just a few examples. People and how they work individually and together are the focus of this book. The story of Aaron Feuerstein in the OB at Work feature on the next page clearly shows that putting people first can have dramatic positive effects for an organization and community. Another characteristic of the book is that it is globally oriented. That people work in organizations, produce goods and services, and contribute to a society is not a phenomenon found only in the United States.2 Americans are no smarter than Germans, nor are they better workers than Brazilians. The fact that the United States became such a productive nation is largely the result of the application of sound management practices and techniques. Americans planned efficiently, organized systematically, and led workers effectively. Also, Americans came up with new techniques, new methods, and new styles of management that fit well with the time, the workforce, and the mission. In the past 60 years, productivity improvement has been a major priority for most organizations. As we move further into the 21st century, managers around the world must recapture the feel, the passion, and the desire for being effective, for producing high-quality products, and for providing outstanding services. Unfortunately, the importance of managing human resources hasn’t always taken center stage. It is our strong belief that managing people effectively in organizations is the most essential ingredient for achieving organizational success, retaining a comfortable standard of living, remaining one of the world’s economic leaders, and improving the quality of life for all citizens.3 Whether we’re talking about a pizza parlor in Chicago, a glass manufacturing plant in Monterrey, Mexico, or a cooperative produce shop in Vilnius, Lithuania, management within an organizational setting is important. The clerk in the Lithuanian produce shop wants to earn a fair day’s pay for his work, the company president in Mexico has to purchase the best equipment to compete internationally, and the pizza parlor owner must motivate people to show up on time for work. These individuals’ work behaviors occur within organizations. To better understand these behaviors, we believe that we must formally study people, processes, and structure in relation to organizations. An organization is a coordinated unit consisting of at least two people who function to achieve a common goal or set of goals. This is what this book is about—organizations, large and small, domestic and global, successful and unsuccessful. Looking inside the organization at the people, processes, and structures will help enlighten the observer and will also reveal the inner workings of organizations that have been a main contributor to the standards of living enjoyed by people around the world. gib12664_ch01_001-028.indd Page 5 27/01/11 7:25 PM user-f472 /208/MHBR213/gib12664_disk1of1/0078112664/gib12664_pagefiles Chapter 1 O B AT W O R K Managing Effective Organizations 5 Putting People First On December 11, 1995, a devastating fire swept through a mill complex in the heart of Lawrence, Massachusetts. Malden Mills, one of the few remaining textile firms operating in New England, owned the factory. The destruction threatened the 1,400 jobs at the mill. Another 1,600 jobs at plants in the community that did business with Malden Mills were also threatened. However, on the morning after the fire, the owner of Malden Mills, Aaron Feuerstein, promised his employees that their jobs were secure. He decided that Malden Mills would rebuild the ruined plant and would continue to provide full paychecks and medical benefits through the holiday season. The fire and its aftermath generated a lot of national attention. Feuerstein’s actions were praised, and he was regarded as a sensitive, caring leader. A few months later, a welder at the plant praised Feuerstein, “. . . with what he’s doing with Malden Mills, it’s an honor to work in this place.” Feuerstein’s philosophy of putting people first is reflected in his statement that Putting people first was something that Feuerstein did with ease. In a region of the United States that had witnessed downsizing, reengineering, and outsourcing, Feuerstein’s behavior was embraced, applauded, and held in high regard. Feuerstein had faith in his workers and showed how important they were to him. Since the fire, Malden Mills has fallen on hard times. Economic conditions in Lawrence have deteriorated for the factories in the region. Unfortunately, the years after the fire were filled with debt and bankruptcy. Feuerstein was asked if he would do the same thing again. He said, “Yes, it was the right thing to do.” A memory that citizens will not forget, though, is how managers at Malden treated their employees after an unfortunate fire. This memory continues to be a part of the history of the region even though the factories continue to close down. I have a responsibility to the worker, both blue-collar and white-collar. I have an equal responsibility to the community. It would have been unconscionable to put 3,000 people on the streets and deliver a deathblow to the cities of Lawrence and Matheren. Maybe on paper our company is worth less to Wall Street, but I can tell you it’s worth more. We’re doing fine. Sources: Adapted from In Brief, Wall Street Journal, February 21, 2007, eastern edition, p. B.4; www.aish.com, accessed on April 2, 2007; Davis Bushnell, “Maneuvering for Control of Stronger Malden Mills,” Boston Globe, February 5, 2004, p. D1; “Malden Mills,” Industry Standard, July 24, 2001, p. 6; www.reputation-mgmt.com/malden.htm; and Richard K. Lester, The Productivity Edge (New York: Norton, 1998), pp. 213–14. As the opening vignette illustrates, the expectations of consumers are changing. Organizations must be prepared to deal with consumer needs for social responsibility, good citizenship, and responsible management and leadership. The array of stakeholders applying pressure suggests that managing organizational behavior can be challenging and rewarding for managers. Studying Organizational Behavior organizational behavior (OB) The field of study that draws on theory, methods, and principles from various disciplines to learn about individuals’ perceptions, values, learning capacities, and actions while working in groups and within the organization and to analyze the external environment’s effect on the organization and its human resources, missions, objectives, and strategies. Why does Ric Nunzio always seem to hire older employees for his pizza parlor? Why is Selena Rodriguez the best decision maker in selecting what piece of equipment to purchase for her glass manufacturing plant? Why does Val Kupolus always complain that he’s not paid enough to sell produce at the Vilnius produce stand? Such questions are studied, analyzed, and debated in the field called organizational behavior (OB). The formal study of organizational behavior began between 1948 and 1952. This still-emerging field attempts to help managers understand people better so that productivity improvements, customer satisfaction, and a better competitive position can be achieved through better management practices. The behavioral sciences—especially psychology, sociology, political science, and cultural anthropology—have provided the basic framework and principles for the field of organizational behavior. Each behavioral science discipline provides a slightly different focus, analytical framework, and theme for helping managers answer questions about themselves, nonmanagers, and environmental forces (e.g., competition, legal requirements, and social/political changes). gib12664_ch01_001-028.indd Page 6 27/01/11 7:25 PM user-f472 6 Part One /208/MHBR213/gib12664_disk1of1/0078112664/gib12664_pagefiles Introduction The multidisciplinary definition of organizational behavior illustrates a number of points. First, OB indicates that behaviors of people operate at individual, group, and organizational levels. This approach suggests that when studying OB we must identify clearly the level of analysis being used—individual, group, organizational, or all three. Second, OB is multidisciplinary; it uses principles, models, theories, and methods from other disciplines. The study of OB isn’t a discipline or a generally accepted science with an established theoretical foundation. It’s a field that only now is beginning to grow and develop in stature and impact. Third, there’s a distinctly humanistic orientation within organizational behavior. People and their attitudes, perceptions, learning capacities, feelings, and goals are important to the organization. Fourth, the field of OB is performance oriented. Why is performance low or high? How can performance be improved? Can training enhance on-the-job performance? These are important issues facing managers. Fifth, the external environment is seen as having significant effect on organizational behavior. Sixth, because the field of OB relies heavily on recognized disciplines, the scientific method is important in studying variables and relationships. As the scientific method has been applied to research on organizational behavior, a set of principles and guidelines on what constitutes good research has emerged.4 Finally, the field has a distinctive applications orientation; it concerns providing useful answers to questions that arise in the context of managing operations. Organizational Behavior Follows Principles of Human Behavior The effectiveness of any organization is influenced greatly by human behavior. People are a resource common to all organizations. The pizza parlor, the glass manufacturing plant, and the produce stand employ human assets and interact with people such as customers, suppliers, and job candidates. One important principle of psychology is that each person is different. Each has unique perceptions, personality, and life experiences. People have different ethnic backgrounds; different capabilities for learning and for handling responsibility; and different attitudes, beliefs, and aspiration levels. We’ve moved from an era in which large portions of the workforce were middle-aged men who spoke only English to an era of diversity. Today’s workforce doesn’t look, think, or act like the workforce of the past.5 To be effective, managers of organizations must view each employee or member as a unique embodiment of all these behavioral and cultural factors. Organizations Are Social Systems The relationships among individuals and groups in organizations create expectations for individuals’ behavior. These expectations result in certain roles that must be performed. Some people must perform leadership roles, whereas others must participate in the roles of followers. Middle managers, because they have both superiors and subordinates, must perform both roles. Organizations have systems of authority, status, and power, and people in organizations have varying needs from each system. Groups in organizations also have a powerful impact on individual behavior and on organizational performance. contingency approach Approach to management that believes there’s no one best way to manage in every situation and managers must find different ways that fit different situations. Multiple Factors Shape Organizational Behavior A person’s behavior in any situation involves the interaction of that individual’s personal characteristics and the characteristics of the situation. Thus, identifying all of the factors is time-consuming and difficult; frequently, the task is impossible. To help us identify the important managerial factors in organizational behavior, we use the contingency (or situational) approach. The basic idea of the contingency approach is that there’s not one best way to manage; a method that’s very effective in one gib12664_ch01_001-028.indd Page 7 27/01/11 7:25 PM user-f472 /208/MHBR213/gib12664_disk1of1/0078112664/gib12664_pagefiles Chapter 1 Managing Effective Organizations 7 situation may not work at all in others. The contingency approach has grown in popularity because research has shown that given certain characteristics of a job and certain characteristics of the people doing the job, some management practices work better than others. Thus, the Mexican glass manufacturing plant’s manager of operations faced with a poorly performing group doesn’t assume that a particular approach will work. In applying the contingency approach, he diagnoses the characteristics of the individuals and groups involved in the organizational structure, and his own leadership style, before deciding on a solution. Organizational behavior has evolved into an applied set of behavioral science concepts, models, and techniques. The predominant contributors to OB—psychology, social psychology, sociology, political science, and anthropology—have contributed to our understanding and use of OB in organizational settings. Figure 1.1 presents an illustration of some of the major contributions of the behavioral sciences to the study and application of OB. FIGURE 1.1 Contributions to the Study and Application of OB Behavior science Topic, model, technique contributed Psychology • Perception • Values • Attitudes • Learning • Job design • Individual difference analysis • Recruitment • Selection • Motivation • Stress • Reward systems • Evaluation and feedback • Organization theory • Organization culture • Group development • Group characteristics • Intergroup analysis and conflict • Power • Work teams • Self-managed teams • Change • Communication • Behavioral change • Attitude change • Group processes • Group effectiveness • Group decision making • Groupthink • Influence tactics • Power and ethics • Political strategies • Empowerment • Conflict resolution • Illusion of power A science that attempts to study, explain, and at times modify behavior. Sociology The study of group behavior and how people relate to each other. Social psychology A behavioral science area that focuses on how individuals influence each other. Political science The study of the behavior of individuals and groups within a political framework. Anthropology The study of societies to learn about values, attitudes, and behavior of people within different settings, cultures, and countries. Level of focus or analysis Individual Group Organization • Cross-cultural communications • Cross-cultural analysis • Values and morals • Comparative analysis Field of organizational behavior gib12664_ch01_001-028.indd Page 8 27/01/11 7:25 PM user-f472 8 Part One /208/MHBR213/gib12664_disk1of1/0078112664/gib12664_pagefiles Introduction To help you learn how to manage individuals and groups as resources of organizations, this book focuses on the behavior of individuals and groups, organizational structure and job design, and processes. Developing the model presented in this book required the use of several assumptions. These assumptions are explained briefly in the following paragraphs, which precede the model.6 Structure and Processes Affect Organizational Behavior and the Emergent Culture structure Blueprint that indicates how people and jobs are grouped together in an organization. Structure is illustrated by an organization chart. processes Activities that breathe life into organization structure. Common processes are communication, decision making, socialization, and career development. An organization’s structure is the formal pattern of how its people and jobs are grouped. Structure often is illustrated by an organization chart. Processes are activities that give life to the organization chart. Communication, decision making, and organization development are examples of processes in organizations. Sometimes, understanding process problems such as breakdowns in communication and decision making will result in a more accurate understanding of organizational behavior than will simply examining structural arrangements. The pattern of basic assumptions used by individuals and groups to deal with the organization and its environment is called its culture. In straightforward terms, the organization’s culture is its personality, atmosphere, or “feel.” The culture of an organization defines appropriate behavior and bonds; it motivates individuals; and it governs the way a company processes information, internal relations, and values. It functions at all levels from the subconscious to the visible. A firm’s culture has been likened to one of those inkblots in which we see what we want to see.7 A firm’s culture results in shared thoughts, feelings, and talk about the organization.8 Nike employees share norms about the dress code, business practices, and promotion systems. Wal-Mart associates share emotions about working for the chain and coming to work on time with a positive attitude. It’s the sharing that bonds employees together and creates a feeling of togetherness.9 Cultures of organizations can be positive or negative. An organization’s culture is positive if it helps improve productivity. A negative culture can hinder behavior, disrupt group effectiveness, and hamper the impact of a well-designed organization. Effective managers know what to look for in terms of structure, process, and culture and how to understand what they find. Therefore, managers must develop diagnostic skills; they must be trained to identify conditions symptomatic of a problem requiring further attention. Problem indicators include declining profits, declining quantity or quality of work, increases in absenteeism or tardiness, and negative employee attitudes. Each of these problems is an issue of organizational behavior. The Blending of the Art and Science of Organizational Behavior There is no set of universal prescriptions that can predict every behavior, team outcome, or organizational phenomenon. People are typically unique and unpredictable in some aspects of their behavior. In physics there are laws, formulas, and mathematical procedures that apply to a wide range of situations. The speed of a vehicle traveling down a hill can be calculated, and the answer applies to similar hills, cars, and conditions. Organizational behavior is not as stable or predictable as physics. OB is different because it deals with human beings in work settings. The body of OB knowledge is being expanded by researchers as they study and report on individual, group, and organizational behavior. The art of organizational behavior application is beginning to blend with empirically-based research. Managers carry out roles that can be successfully accomplished if they skillfully apply the best available knowledge to the situation at hand. These views of the work of management suggest that art and science can be blended to solve problems. Therefore, effectively gib12664_ch01_001-028.indd Page 9 27/01/11 7:25 PM user-f472 /208/MHBR213/gib12664_disk1of1/0078112664/gib12664_pagefiles Chapter 1 OB AND YOUR CAREER 9 Research and Managers: Perfect Together! Many managers make decisions based on intuition and “gut feel.” Some of these same managers avoid or undervalue suggestions and tips that originate from empirical studies conducted by researchers from such entities as business schools and/or consulting practices. Although we see the value of intuition, we also feel that science can help managers make better decisions at the workplace. Examples of research findings include: 1. Goal setting is an effective way to improve employee performance. 2. Structured interviews (i.e., ask the same job-related questions of each candidate, use benchmark scoring, etc.) have been found to be more valid than unstructured job interviews. 3. Intelligence is a good predictor of job performance. Managing Effective Organizations What’s the bottom line? New and experienced managers alike can be more successful if they take the time to learn and apply some of the key research findings from the management and organizational behavior literatures. Such articles can be found with a few keyword searches using a university library business database or a search engine like Google Scholar. One tip is to look for recent summary articles that review the management and organizational behavior research over the past 10 years or so. Get ahead by being informed! Sources: John Humphreys, Jennifer Oyler, Mildred Pryor, and Stephanie Haden, “Lost in Translation: From B-School to Business,” The Journal of Business Strategy, 31, no. 2, (2010): 13–17; Robert J. Grossman, “Close the Gap Between Research and Practice,” HRMagazine, November 2009, pp. 31–36; Sara L. Rynes, Tamara L. Giluk, and Kenneth G. Brown, “The Very Separate Worlds of Academic and Practitioner Periodicals in Human Resource Management: Implications for Evidence-Based Management,” Academy of Management Journal 50, no. 5 (2007), pp. 987–1008. managing in any situation or organization requires the deft touch of an artist and excellent execution of specific and proven behaviors. As the OB and Your Career above suggests, managers who ignore science or art are not likely to be effective or respected.10 To be and remain effective, managers must apply knowledge. The application and execution of knowledge can be designated as competencies. Included in these important competencies are intellectual capability, a systems orientation, interpersonal skills, flexibility, and self-motivation. A Model for Managing Organizations: Behavior, Structure, and Processes The Organization’s Environment Within a society, many factors influence an organization, and management must be responsive to them. Every organization must respond to the needs of its customers or clients, to legal and political constraints, and to economic and technological changes. Environmental forces interact with organization factors. Economic and market circumstances and technological innovations make up an organization’s environment, as do federal, state, and local legislation and political, social, and cultural conditions external to the organization. Together, these components of an environment influence how an organization operates and also how it is structured. Managers increasingly work in an unpredictable economic environment. It is now important for managers to respond quickly to changing economic conditions in other countries. Also, the dramatic and unexpected consequences of technological innovations require astute management attention and action. For example, since the transistor was invented in 1947, digital technology has been evolving faster and computing devices are getting smaller, cheaper, and more powerful. These devices, combined with databases, multimedia interfaces, and software, are affecting every profession, company, and business practice. gib12664_ch01_001-028.indd Page 10 27/01/11 7:25 PM user-f472 10 Part One /208/MHBR213/gib12664_disk1of1/0078112664/gib12664_pagefiles Introduction Increased government regulations have affected management’s actions in production and employment practices. Foreign trade tariffs, occupational safety and health guidelines, and equal employment opportunities influence the way a firm conducts business. Behavior within Organizations The Individual Individual performance is the foundation of organizational performance. Understanding individual behavior is therefore critical for effective management, as illustrated in the following account: Ted has been a field representative for a major drug manufacturer since he graduated from college seven years ago. He makes daily calls on physicians, hospital, clinics, and pharmacies. Ted’s sales of his firm’s major drugs have increased, and he has won three national sales awards given by the organization. Yesterday, Ted was promoted to sales manager for a seven-state region. He’ll no longer be selling but instead will be managing 15 other representatives. His sales team includes men and women, Caucasians, Hispanics, Blacks, and Asians. Ted accepted the promotion because he believes he knows how to motivate and lead salespeople. He comments, “I know the personality of the salesperson. They are special people. I know their values and attitudes and what it takes to motivate them. I know I can motivate a sales force.” In his job, Ted will be trying to maximize the individual performances of 15 sales representatives. In doing so, he will be dealing with several facets of individual behavior. Individual Characteristics Because organizational performance depends on individual performance, managers such as Ted must have more than a passing knowledge of the determinants of individual performance. Psychology and social psychology contribute relevant knowledge about the relationships among attitudes, perceptions, personality, values, and individual performance. Learning to manage cultural diversity, such as that found among Ted’s 15 sales representatives, has become increasingly important in recent years. Managers can’t ignore the need to acquire and act on knowledge of the individual characteristics of both their subordinates and themselves. Individual Motivation Motivation and ability to work interact to determine performance. Motivation theory attempts to explain and predict how individuals’ behavior is aroused, sustained, and stopped. Unlike Ted Johnson, not all managers and behavioral scientists agree on what is the best theory of motivation. In fact, the complexity of motivation may make an all-encompassing theory of how it occurs impossible. But managers must still try to understand it. They must be concerned with motivation because they must be concerned with performance. Rewards and Appraisal One of the most powerful influences on individual performance is an organization’s reward system. Management can use rewards to increase current employees’ performance. It can also use rewards to attract skilled employees to the organization. Performance appraisals, paychecks, raises, and bonuses are important aspects of the reward system, but they aren’t the only aspects. Ted makes this point clear in the preceding account when he states, “I know what it takes to motivate them.” Performance of the work itself can provide employees with rewards, particularly if job performance leads to a sense of personal responsibility, autonomy, and meaningfulness. These intrinsic rewards are also supplemented with extrinsic rewards, or what an organization, a manager, or a group can provide a person in terms of monetary and nonmonetary factors. gib12664_ch01_001-028.indd Page 11 27/01/11 9:46 PM user-f472 /Volumes/208/MHSF234/gri34307_disk1of1/0073534307/gri34307_pagefiles Chapter 1 Managing Effective Organizations 11 Groups and Interpersonal Influence Group behavior and interpersonal influence are also powerful forces affecting organizational performance, as the following account shows: During her two and one-half years as a teller in a small-town bank in Fort Smith, Arkansas, Kelly developed close friendships with her co-workers. These friendships existed outside the job as well. Two months ago Kelly was promoted to branch manager. She was excited about the new challenge. She began the job with a great deal of optimism and believed her friends would be genuinely happy for her and supportive of her efforts. But since she became branch manager, things haven’t been quite the same. Kelly can’t spend nearly as much time with her friends because she’s often away from the branch attending management meetings at the main office. Kelly senses that some of her friends have been acting a little differently toward her lately. Recently Kelly said, “I didn’t know that being a part of the management team could make that much difference. Frankly, I never really thought about it. I guess I was naïve. I’m getting a totally different perspective on the business and have to deal with problems I never knew about.” Kelly’s promotion has made her a member of more than one group. In addition to being part of her old group of friends at the branch, she’s also a member of the management team. She’s finding out that group behavior and expectations have a strong impact on individual behavior and interpersonal influence. Group Behavior Groups form because of managerial action and because of individual efforts. Managers create work groups to carry out assigned jobs and tasks. Such groups, created by managerial decisions, are termed formal groups. The group that Kelly manages at her branch is a group of this kind. Groups also form as a consequence of employees’ actions. Such groups, termed informal groups, develop around common interests and friendships. Kelly’s bowling group is an informal group. Although not a part of the organization, groups of this kind can affect organizational and individual performance. The effect can be positive or negative, depending on the group members’ intentions. If the group at Kelly’s branch decided informally to slow the work pace, this norm would exert pressure on individuals who wanted to remain a part of the group. Effective managers recognize the consequences of individuals’ needs for affiliation. Intergroup Behavior and Conflict As groups function and interact with other groups, each develops a unique set of characteristics, including structure, cohesiveness, roles, norms, and processes. The group in essence creates its own culture. As a result, groups may cooperate or compete with other groups, and intergroup competition can lead to conflict. If the management of Kelly’s bank instituted an incentive program with cash bonuses to the branch bringing in the most new customers, this might lead to competition and conflict among the branches. Although conflict among groups can have beneficial results for an organization, too much or the wrong kinds of intergroup conflict can have negative results. Thus, managing intergroup conflict is an important aspect of managing organizational behavior. Power and Politics Power is the ability to get someone to do something you want done or to make things happen in the way you want them to happen. Many people in our society are uncomfortable with the concept of power. Some are deeply offended by it. This is because the essence of power is control over others. To many Americans and a growing number of people around the world, this is an offensive thought. But power does exist in organizations. Managers derive power from both organizational and individual sources. Kelly has power by virtue of her position in the formal hierarchy of the bank. She controls performance evaluations and salary increases. However, she may gib12664_ch01_001-028.indd Page 12 27/01/11 7:25 PM user-f472 12 Part One /208/MHBR213/gib12664_disk1of1/0078112664/gib12664_pagefiles Introduction O B AT W O R K Raising the Bar on Managerial Ethics In the wake of corporate and financial scandals, and a persistent recession that has devastated the U.S. job market, corporate leaders and managers have received their share of the blame. This is partly due to the perception that many leaders placed greed and short-term profits well before the needs of their key stakeholders (e.g., employees, customers, and the communities in which they operate). There seems to be a shift in public sentiment over the past few years in that businesses should focus on more than just making a profit. This shift has led to an increase in negative press about the lack of professionalism in the management profession. Caught in this negative fallout are MBA programs that have been criticized for not doing enough to create managers and leaders who take a more humanistic and ethical approach to leading and managing organizations. Students who graduate with MBAs have been criticized for not maintaining strong ethical standards when they reach positions of power in companies. To address these negative perceptions and critics, in June 2009, a team of Harvard Business School (HBS) graduating MBA students led by Max Anderson and Peter Escher developed an “MBA Oath.” The following is an excerpt from the oath: As a manager, my purpose is to serve the greater good by bringing people and resources together to create value that no single individual can build alone. Therefore I will seek a course that enhances the value my enterprise can create for society over the long term. Anderson and Escher’s original goal was to collect 100 signatures (or 10 percent) from members of the HBS graduating class but instead collected more than 500 signatures (over 50 percent). Supported by Harvard’s dean, the MBA Oath (also referred to as a “Hippocratic oath for managers”) concept is spreading to several other business schools throughout the United States and internationally. Will MBA oaths help change the “greed is good” thinking that has been part of many managers’ thinking for many decades? It is too early to tell. The oath seems to underscore the idea that “maximizing shareholder value” may contribute to managerial decision-making that leads to short-term opportunism but damages the long-term prospects, health, and profitability of the organizations. This opportunism seems to be giving way to a more humanistic approach to running enterprises. Perhaps, managers and leaders will reject the “greed is good” mantra and instead support a more ethical and integritydriven approach to management. Sources: http://blogs.hbr.org/cs/2009/06/why_we_created_the_ mba_oath.html (accessed on June 26, 2010); Michael A. Pirson and Paul R. Lawrence, “Humanism in Business – Towards a Paradigm Shift?” Journal of Business, 93, no. 4 (2010), pp. 553–565; “Forswearing Greed: A Hippocratic Oath for Managers,” The Economist, June 6, 2009, p. 66; Michael Lewis, “Michael Lewis on Wall Street Oath-Taking,” Businessweek, June 14, 2010, p. 1; Philip Delves, “A Worthy Attempt at Swearing to a Higher Standard,” Financial Times, April 22, 2010, p. 12. also have power because her co-workers respect and admire her abilities and expertise. Managers must become comfortable with the concept of power as a reality in organizations and managerial roles. Leadership Leaders exist within all organizations. They may be found in formal groups, like Kelly’s management team at the bank, or in informal groups. They may be managers or nonmanagers. The importance of effective leadership for obtaining individual, group, and organizational performance is so critical that there has been much effort to determine the causes of such leadership. Some people believe that effective leadership depends on traits and certain behaviors, separately and in combination; other people believe that one leadership style is effective in all situations; still others believe that each situation requires a special leadership style. Quality and leadership concepts have been found to be inseparable. Without effective leadership practices, instilling concern about customer-focused quality is difficult, if not impossible. The OB at Work feature above discusses how some future business leaders are broadening their personal definitions of effectiveness and success. The Structure and Design of Organizations To achieve organizational effectiveness, managers must clearly understand the organizational structure. Viewing an organization chart on a piece of paper or frame on a wall, we gib12664_ch01_001-028.indd Page 13 27/01/11 7:25 PM user-f472 /208/MHBR213/gib12664_disk1of1/0078112664/gib12664_pagefiles Chapter 1 Managing Effective Organizations 13 see only a configuration of positions, job duties, and lines of authority among the parts of an organization. However, organizational structure can be far more complex, as the following account shows: Dan was appointed vice president of quality at a small manufacturing shop in Orange, New Jersey. He spent about three months studying the organization that produces generator parts sold throughout the United States, Canada, Mexico, Poland, Hungary, and Russia. Dan wants to instill more of a teamwork concept and an interest in quality improvement. This would be quite a change from the present rigid departmental structure that now exists in the company. His unit leaders are Hispanic, Italian, German, and Vietnamese. They each have voiced opinions that management discriminates against them and isn’t ethnically aware. Dan wants to correct this perception and wants each unit leader to be a part of his team. He must change perceptions, redesign the organization, develop a team spirit, and produce high-quality products in an increasingly competitive market. An organization’s structure is the formal pattern of activities and interrelationships among the various subunits of the organization. This book discusses two important aspects of organizational structure: job design and organizational design. Job Design Job design refers to the process by which managers specify the contents, methods, and relationships of jobs to satisfy both organizational and individual requirements. Dan must define the content and duties of the unit leader’s position and the relationship of the position to each member of his team. Organizational Design Organizational design refers to the overall organizational structure. Dan plans to change the philosophy and orientation of the teams. This effort will create a new structure of tasks, authority, and interpersonal relationships that he believes will channel the behavior of individuals and groups toward improved quality performance. The Process of Organizations Certain behavioral processes give life to an organizational structure. When these processes don’t function well, unfortunate problems arise, as this account shows: Once Sandra completed her MBA, she was more positive than ever that marketing would be her life’s work. Because of her excellent academic record, she received several outstanding job offers. She accepted an offer from one of the nation’s largest consulting firms, believing that this job would allow her to gain experience in several areas of marketing and to engage in a variety of exciting work. Her last day on campus, she told her favorite professor, “This has got to be one of the happiest days of my life, getting such a great career opportunity.” Recently, while visiting the college placement office, the professor was surprised to hear that Sandra had told the placement director that she was looking for another job. Since she’d been with the consulting company less than a year, the professor was somewhat surprised. He called Sandra to find out why she wanted to change jobs. She told him, “I guess you can say my first experience with the real world was a ‘reality shock.’ All day long, I sit and talk on the phone, asking questions and checking off the answers. In graduate school, I was trained to be a manager, but here I’m doing what any high school graduate can do. I talked to my boss, and he said that all employees have to pay their dues. Well, why didn’t they tell me this while they were recruiting me? A little bit of accurate communication would have gone along way.” This book discusses two behavioral processes that contribute to effective organizational performance: communication and decision making. gib12664_ch01_001-028.indd Page 14 27/01/11 7:25 PM user-f472 14 Part One /208/MHBR213/gib12664_disk1of1/0078112664/gib12664_pagefiles Introduction Communication Organizational survival is related to management’s ability to receive, transmit, and act on information. The communication process links the organization to its environment as well as to its parts. Information flows to and from the organization and within the organization. Information integrates the activities within the organization. Sandra’s problem arose because the information that flowed from the organization was different from the information that flowed within the organization. Decision Making The quality of decision making in an organization depends on selecting proper goals and identifying means for achieving them. With good integration of behavior and structural factors, management can increase the probability that high-quality decisions are made. Sandra’s experience illustrates inconsistent decision making by different organizational units (human resources and marketing) in hiring new employees. Organizations rely on individual decisions as well as group decisions. Effective management requires knowledge about both types of decisions. Because managerial decisions affect people’s lives and well-being, ethics play a major role.11 Was Sandra provided with realistic and truthful information about the job? If not, was there a breach of ethics on the part of the recruiter? Managers have power by virtue of their positions, so the potential for unethical decision making is present. With all the newspaper and TV accounts of scandals around the world in business, government, medicine, politics, and the law, there’s evidence that ethics in terms of decision making need serious ...
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