Saudi Electronic University Leadership VS Management Essay

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Write an essay about Organizational Leadership versus Management. Use examples, peer-reviewed journals to support your answer. This essay must be at least 800-words in length.

Directions:

These assignments are an individual assignments.

All students are encouraged to use their own words.

  • Be three to five pages in length (800-1000 words), which does not include the title page, abstract or required reference page, which are never a part of the content minimum requirements.
  • Use proper referencing (APA style) to reference,other style will not accepted.
  • Support your submission with course material concepts, principles, and theories from the textbook and at least two scholarly, peer-reviewed journal articles unless the assignment calls for more.
  • It is strongly encouraged that you submit all assignments into the safe assignment Originality Check prior to submitting it to your instructor for grading.
  • Write a three-part essay (i.e., an essay that includes an introduction paragraph, the essay’s body, and a conclusion paragraph) that address the questions using a question and answer format.

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O RGANIZAT IONAL B EHAV IOR TWELFTH EDITION E X P ERI E NCE | GR OW | CONTR IB UT E SC H E R M ERHORN O SB O R N H UN T UH L-BI E N This page is intentionally left blank WileyPLUS is a research-based online environment for effective teaching and learning. WileyPLUS builds students’ confidence because it takes the guesswork out of studying by providing students with a clear roadmap: • • • what to do how to do it if they did it right It offers interactive resources along with a complete digital textbook that help students learn more. With WileyPLUS, students take more initiative so you’ll have greater impact on their achievement in the classroom and beyond. For more information, visit www.wileyplus.com ALL THE HELP, RESOURCES, AND PERSONAL SUPPORT YOU AND YOUR STUDENTS NEED! www.wileyplus.com/resources 2-Minute Tutorials and all of the resources you and your students need to get started Student support from an experienced student user Collaborate with your colleagues, find a mentor, attend virtual and live events, and view resources www.WhereFacultyConnect.com Pre-loaded, ready-to-use assignments and presentations created by subject matter experts Technical Support 24/7 FAQs, online chat, and phone support www.wileyplus.com/support Your WileyPLUS Account Manager, providing personal training and support 12th edition ORGANIZATIONAL BEHAVIOR John R. Schermerhorn, Jr. | Richard N. Osborn | Mary Uhl-Bien | James G. Hunt Ohio University Wayne State University John Wiley & Sons, Inc. University of Nebraska Texas Tech University VICE PRESIDENT & EXECUTIVE PUBLISHER EXECUTIVE EDITOR DEVELOPMENTAL EDITOR ASSOCIATE EDITOR PROJECT EDITOR ASSOCIATE DIRECTOR OF MARKETING MARKETING MANAGER MARKETING ASSISTANT DESIGN DIRECTOR SENIOR CONTENT MANAGER SENIOR PRODUCTION EDITOR SENIOR MEDIA EDITOR MEDIA SPECIALISTS PHOTO DEPARTMENT MANAGER PHOTO RESEARCHER EDITORIAL ASSISTANT ILLUSTRATION EDITOR PRODUCTION MANAGEMENT SERVICES TEXT DESIGNER COVER DESIGNER COVER PHOTO UMBRELLA ICON George Hoffman Lisé Johnson Susan McLaughlin Sarah Vernon Brian Baker Amy Scholz Kelly Simmons Ashley Tomeck Harry Nolan Dorothy Sinclair Erin Bascom Allison Morris Elena Santa Maria and Thomas Caruso Hilary Newman Lisa Passmore Melissa Solarz Anna Melhorn Ingrao Associates Madelyn Lesure Wendy Lai ©ULTRA.F/Getty Images, Inc. ©Monti26/Shutterstock This book was typeset in 10/12 ITC Garamond at Aptara®, Inc. and printed and bound by Quad Graphics/Versailles. The cover was printed by Quad Graphics/Versailles. This book is printed on acid free paper. ∞ Founded in 1807, John Wiley & Sons, Inc. has been a valued source of knowledge and understanding for more than 200 years, helping people around the world meet their needs and fulfill their aspirations. Our company is built on a foundation of principles that include responsibility to the communities we serve and where we live and work. In 2008, we launched a Corporate Citizenship Initiative, a global effort to address the environmental, social, economic, and ethical challenges we face in our business. Among the issues we are addressing are carbon impact, paper specifications and procurement, ethical conduct within our business and among our vendors, and community and charitable support. For more information, please visit our website: www.wiley.com/go/citizenship. Copyright ©2012, 2010, 2008, 2005, John Wiley & Sons, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate percopy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, website www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030-5774, (201)748-6011, fax (201)748-6008, website http://www.wiley.com/go/permissions. Evaluation copies are provided to qualified academics and professionals for review purposes only, for use in their courses during the next academic year. These copies are licensed and may not be sold or transferred to a third party. Upon completion of the review period, please return the evaluation copy to Wiley. Return instructions and a free of charge return shipping label are available at www.wiley.com/go/returnlabel. If you have chosen to adopt this textbook for use in your course, please accept this book as your complimentary desk copy. Outside of the United States, please contact your local representative. ISBN 13 978-0-470-87820-0 978-1-118-12931-9 Printed in the United States of America. 10 9 8 7 6 5 4 3 2 1 about the authors Dr. John R. Schermerhorn, Jr. is the Charles G. O’Bleness Professor Emeritus of Management in the College of Business at Ohio University where he teaches undergraduate and MBA courses in management, organizational behavior, and Asian business. He earned a Ph.D. in organizational behavior from Northwestern University, after receiving an M.B.A. (with distinction) in management and international business from New York University, and a B.S. in business administration from the State University of New York at Buffalo. Dedicated to instructional excellence and serving the needs of practicing managers, Dr. Schermerhorn focuses on bridging the gap between the theory and practice of management in both the classroom and in his textbooks. He has won awards for teaching excellence at Tulane University, The University of Vermont, and Ohio University, where he was named a University Professor, the university’s leading campus-wide award for undergraduate teaching. He also received the excellence in leadership award for his service as Chair of the Management Education and Development Division of the Academy of Management. Dr. Schermerhorn’s international experience adds a unique global dimension to his teaching and textbooks. He holds an honorary doctorate from the University of Pécs in Hungary, awarded for his international scholarly contributions to management research and education. He has also served as a Visiting Professor of Management at the Chinese University of Hong Kong, as on-site Coordinator of the Ohio University MBA and Executive MBA programs in Malaysia, and as Kohei Miura visiting professor at the Chubu University of Japan. Presently he is Adjunct Professor at the National University of Ireland at Galway, a member of the graduate faculty at Bangkok University in Thailand, and Permanent Lecturer in the PhD program at the University of Pécs in Hungary. An enthusiastic scholar, Dr. Schermerhorn is a member of the Academy of Management, where he served as chairperson of the Management Education and Development Division. Educators and students alike know him as author of Management 11e (Wiley, 2011) and Exploring Management 3e (2012), and senior co-author of Organizational Behavior 12/e (Wiley, 2012). His many books are available in Chinese, Dutch, French, Indonesian, Portuguese, Russian, and Spanish language editions. Dr. Schermerhorn’s published articles are found in the Academy of Management Journal, Academy of Management Review Academy of Management Executive, Organizational Dynamics, Journal of Management Education, and the Journal of Management Development. Dr. Schermerhorn is a popular guest speaker at colleges and universities. His recent student and faculty workshop topics include innovations in business education, teaching the millennial generation, global perspectives in management education, and textbook writing and scholarly manuscript development. Dr. John R. Schermerhorn, Jr. v vi About the Authors Dr. James G. (Jerry) Hunt The late Dr. James G. ( Jerry) Hunt was the Paul Whitfield Horn Professor of Management, Professor of Health Organization Management, Former Director, Institute for Leadership Research, and former department Chair of Management, Texas Tech University. He received his Ph.D. and master’s degrees from the University of Illinois after completing a B.S. (with honors) at Michigan Technological University. Dr. Hunt co-authored an organization theory text and Core Concepts of Organizational Behavior (Wiley, 2004) and authored or co-authored three leadership monographs. He founded the Leadership Symposia Series and co-edited the eight volumes based on the series. He was the former editor of the Journal of Management and The Leadership Quarterly. He presented or published some 200 articles, papers, and book chapters, and among his better-known books are Leadership: A New Synthesis, published by Sage, and Out-of-the-Box Leadership, published by JAI. The former was a finalist for the Academy of Management’s 1993 Terry Distinguished Book Award. Dr. Hunt received the Distinguished Service Award from the Academy of Management, the Sustained Outstanding Service Award from the Southern Management Association, and the Barnie E. Rushing, Jr. Distinguished Researcher Award from Texas Tech University for his long-term contributions to management research and scholarship. He also lived and taught in England, Finland, and Thailand, and taught in China. Dr. Richard N. Osborn Dr. Richard N. Osborn is a Wayne State University Distinguished Professor, Professor of Management Emeritus, and former Board of Governors Faculty Fellow. He has received teaching awards at Southern Illinois University at Carbondale and Wayne State University, and he has also taught at Arizona State University, Monash University (Australia), Tulane University, University of Munich, and the University of Washington. He received a DBA from Kent State University after earning an MBA at Washington State University and a B.S. from Indiana University. With over 200 presentations and publications, he is a charter member of the Academy of Management Journals Hall of Fame. Dr. Osborn is a leading authority on international alliances in technology-intensive industries and is co-author of an organization theory text as well as Basic Organizational Behavior ( John Wiley & Sons, 1995, 1998). He has served as editor of international strategy for the Journal of World Business and Special Issue Editor for The Academy of Management Journal. He serves or has served as a member of the editorial boards for The Academy of Management Journal, The Academy of Management Review, Journal of High Technology Management, The Journal of Management, Leadership Quarterly, and Technology Studies, among others. He is very active in the Academy of Management, having served as divisional program chair and president, as well as the Academy representative for the International Federation of Scholarly Associations of Management. Dr. Osborn’s research has been sponsored by the Department of Defense, Ford Motor Company, National Science Foundation, Nissan, and the Nuclear Regulatory Commission, among others. In addition to teaching, Dr. Osborn spent a number of years in private industry, including a position as a senior research scientist with the Battelle Memorial Institute in Seattle, where he worked on improving the safety of commercial nuclear power. About the Authors vii Dr. Mary Uhl-Bien is the Howard Hawks Chair in Business Ethics and Leadership at the University of Nebraska. She earned her Ph.D. and M.B.A. in organizational behavior at the University of Cincinnati after completing an undergraduate degree in International Business and Spanish. She teaches organizational behavior, leadership, and ethics courses at the undergraduate and graduate (MBA and doctoral) levels, and has been heavily involved in executive education, teaching to business executives and physicians in the United States, China, Europe, and Saudi Arabia and to the senior executive service of the U.S. government for The Brookings Institute in Washington, D.C. She has been a visiting professor/scholar at Pablo de Olavide University in Seville, Spain, the Universidade Nova de Lisboa/Catolica Portuguesa in Lisbon, Portugal, and University Lund in Sweden. Dr. Uhl-Bien’s research interests are in leadership, followership, and ethics. In addition to her conceptual work on complexity and relational leadership, some of the empirical projects she is currently involved in include investigations of “Leadership and Adaptability in the Healthcare Industry” (a $300,000 grant from Booz Allen Hamilton), “Adaptive Leadership and Innovation: A Focus on Idea Generation and Flow” (at a major financial institution in the U.S.), and “Social Constructions of Followership and Leading Up.” She has published in such journals as The Academy of Management Journal, the Journal of Applied Psychology, The Leadership Quarterly, the Journal of Management, and Human Relations. She won the Best Paper Award in The Leadership Quarterly in 2001 for her co-authored article on Complex Leadership. She has been on the editorial boards of The Academy of Management Journal, The Academy of Management Review, The Leadership Quarterly, Leadership, and The International Journal of Complexity in Leadership and Management, and is senior editor of the Leadership Horizons series (Information Age Publishers). Dr. Uhl-Bien has consulted with Disney, the U.S. Fish and Wildlife Service, British Petroleum, and the General Accounting Office, and served as the executive consultant for State Farm Insurance Co. from 1998–2004. She has been a Visiting Scholar in Spain, Portugal, and Sweden. Dr. Uhl-Bien has trained Russian businesspeople for the American Russian Center at the University of Alaska Anchorage from 1993–1996, worked on a USAID grant at the Magadan Pedagogical Institute in Magadan, Russia from 1995–1996, and participated in a Fulbright-Hays grant to Mexico during the summer of 2003. Dr. Mary Uhl-Bien preface Global warming, economic uncertainty, poverty, discrimination, unemployment, illiteracy . . . these are among the many issues and problems we face as citizens today. But how often do we stop and recognize our responsibilities for problem solving and positive action in this social context? What we do today will have a lasting impact on future generations. And whether we are talking about families, communities, nations, or the organizations in which we work and volunteer, the core question remains: How can we join together to best serve society? Look again at the cover. Think about people working together and collaborating in organizations around the world. Think about how organizations and their members grow, and how individuals can expand the positive impact of society’s institutions as their ideas and talents come together in supportive and nurturing work settings. And, think about the delicate balances between work and family, between individuals and teams, and between organizations and society that must be mastered in the quest for future prosperity. Yes, our students do have a lot to consider in the complex and ever-shifting world of today. But, we believe they are up to the challenge. And, we believe that courses in organizational behavior have strong roles to play in building their capabilities to make good judgments and move organizational performance forward in positive and responsible ways. That message is a fitting place to begin Organizational Behavior, 12th Edition. Everyone wants to have a useful and satisfying job and career; everyone wants all the organizations of society—small and large businesses, hospitals, schools, governments, nonprofits, and more—to perform well; everyone seeks a healthy and sustainable environment. In this context the lessons of our discipline are strong and applicable. Armed with an understanding of organizational behavior, great things are possible as people work, pursue careers, and contribute to society through positive personal and organizational accomplishments. Organizational behavior is a discipline rich with insights for career and life skills. As educators, our job is to bring to the classroom and to students the great power of knowledge, understanding, and inquiry that characterizes our discipline and its commitment to understanding human behavior in organizations. What our students do with their talents will not only shape how organizations all contribute to society, but also fundamentally alter lives around the globe. We must do our parts as educators to help them gain the understanding and confidence to become leaders of tomorrow’s organizations. JOHN R. SCHERMERHORN, JR. Ohio University RICHARD N. OSBORN Wayne State University MARY UHL-BIEN University of Nebraska viii about this book Organizational Behavior, 12th Edition, brings to its readers the solid and complete content core of prior editions, an enriched and exciting “OB Skills Workbook,” and many revisions, updates, and enhancements that reflect today’s dynamic times. Content All chapters are written so that they can be used in any sequence that best fits the instructor’s course design. Each has also been updated to reflect new research findings and current applications and issues. For this edition, major changes were made to strengthen the research component, expand and refocus the chapters dealing with individual behavior and performance, and more fully treat the emerging directions in leadership research and thinking. A module on Research Methods in OB has been placed online to offer easy ways to further enrich the course experience. Ethics Focus To help students anticipate, understand, and confront the ethical challenges of work and careers today, we have continued our special feature in each chapter— Ethics in OB. This feature presents a situation or issue from an actual case or news report and asks a question of the student reader that requires personal reflection on the ethics and ethics implications. Examples include “Workers Concerned about Ethical Workplace, Personality Testing, Social Loafing May Be Closer than You Think, Privacy in an Age of Social Networking, and Cheat Now . . . Cheat Later.” Leadership Focus To focus students on their roles in demonstrating leadership in organizations, we revised the leadership feature to “Finding the Leader in You.” This feature helps students think about how they can develop their own leadership skills and capabilities to enhance organizational performance. Examples include Patricia Karter of Dancing Deer Baking, Jim Senegal of Costco, Karen Bryant of the Seattle Storm, and Jeff Bezos of Amazon. Research Focus To better communicate the timely research foundations of OB, we have continued the popular Research Insights found in each chapter. Each highlights an article from a respected journal such as the Academy of Management Journal and the Journal of Applied Psychology. Sample topics include ix x About This Book interactional justice, racial bias, social loafing, demographic faultlines, and workplace identities. Applications Focus To help students apply the insights of OB to real situations and problems, each chapter includes Visual Sidebars that highlight key action points to remember—such as “Things Are Changing as the Facebook Generation Goes to Work”; Margin Essays that provide brief and timely examples—such as “Employee Morale Varies Around the World,” and OB and Popular Culture that links movies and television to management insights—such as Moral Management and John Q. Pedagogy As always, our primary goal is to create a textbook that appeals to the student reader while still offering solid content. Through market research surveys and focus groups with students and professors, we continue to learn what features worked best from previous editions, what can be improved, and what can be added to accomplish this goal both effectively and efficiently. Our response is a pedagogical frame that combines popular elements from the last edition with new ones. • Chapter Opening—a timely, real-world vignette introduces the chapter, The Key Point helps clarify the topic, Chapter at a Glance highlights major study questions, and What’s Inside highlights the key features. • Inside the Chapter—a variety of thematic embedded boxes as previously noted—Ethics in OB, Finding the Leader in You, OB in Popular Culture, and Research Insight, highlight relevant, timely, and global themes and situations that reinforce chapter content. Margin Photo Essays provide further short examples highlighting events and issues. To assist with chapter study and test preparation, each chapter has a running Margin Glossary and Margin List Identifiers. • End of Chapter—a Study Guide helps students review and test their mastery of chapter content. Key components are Key Questions and Answers (keyed to opening Chapter at a Glance topics), Key Terms, and a Self-Test (with multiple choice, short response, and essay questions). Next Steps: Top Choices from the OB Skills Workbook highlight the Cases for Critical Thinking, Team and Experiential Exercises, and Self-Assessments found in the back of the book that complement each chapter. The OB Skills Workbook The end-of-text OB Skills Workbook has become a hallmark feature of the textbook, and it has been updated and expanded for the new edition. This edition features the Learning Style Inventory and Kouzes/Posner Student Leadership Practices Inventory. Both fit well in an OB course as opportunities for substantial About This Book xi student reflection and course enhancement. The five sections in the new updated workbook that offer many ways to extend the OB learning experience in creative and helpful ways are: • • • • • Learning Style Inventory Student Leadership Practices Inventory Self-Assessment Portfolio Team and Experiential Exercises Cases for Critical Thinking New Student and Instructor Support Organizational Behavior, 12th Edition, is supported by a comprehensive learning package that assists the instructor in creating a motivating and enthusiastic environment. Instructor’s Resource Guide The Instructor’s Resource Guide, written by Andrea Smith-Hunter, Siena College, offers helpful teaching ideas, advice on course development, sample assignments, and chapter-by-chapter text highlights, learning objectives, lecture outlines, class exercises, lecture notes, answers to end-of-chapter material, and tips on using cases. Test Bank This comprehensive Test Bank, written by Amit Shah, Frostburg University, is available on the instructor portion of the Web site and consists of over 200 questions per chapter. Each chapter has true/false, multiple choice, and short answer questions. The questions are designed to vary in degree of difficulty to challenge your OB students. The Computerized Test Bank is for use on a PC running Windows. It contains content from the Test Bank provided within a test-generating program that allows instructors to customize their exams. PowerPoint This robust set of lecture/interactive PowerPoints prepared by Karen Edwards, Chemeketa Community College, is provided for each chapter to enhance your students’ overall experience in the OB classroom. The PowerPoint slides can be accessed on the instructor portion of the Web site and include lecture notes to accompany each slide. Web Quizzes This online study guide with online quizzes varies in level of difficulty. Written by Amit Shah, Frostburg University, it is designed to help your students evaluate their individual progress through a chapter. Web quizzes are available on the student portion of the Web site. Here students will have the ability to test themselves with 15–25 questions per chapter and include true-false and multiple choice questions. Personal Response System The Personal Response System questions (PRS or “Clickers”) for each chapter of Organizational Behavior 12th Edition is xii About This Book designed to spark discussion/debate in the OB classroom. For more information on PRS, please contact your local Wiley sales representative. Companion Web Site The text’s Web site at http://www.wiley.com/college/ schermerhorn contains myriad tools and links to aid both teaching and learning, including nearly all of the student and instructor resources. Business Extra Select Online Courseware System http://www.wiley. com/college/bxs. Wiley has launched this program that provides an instructor with millions of content resources from an extensive database of cases, journals, periodicals, newspapers, and supplemental readings. This courseware system lends itself extremely well to the integration of real-world content and allows instructors to convey the relevance of the course content to their students. Videos and Video Teaching Guide Short video clips tied to the major topics in organizational behavior are available. These clips provide an excellent starting point for lectures or for general class discussion. Teaching notes for using the video clips, written by Stacy Shriver, University of Colorado, Boulder, are available on the instructor’s portion of the Web site. WileyPLUS WileyPLUS is an innovative, research-based, online environment for effective teaching and learning. What do students receive with WileyPLUS? A Research-based Design WileyPLUS provides an online environment that integrates relevant resources, including the entire digital textbook, in an easy-tonavigate framework that helps students study more effectively. • WileyPLUS adds structure by organizing textbook content into smaller, more manageable “chunks.” • Related media, examples, and sample practice items reinforce the learning objectives. One-on-One Engagement With WileyPLUS for Organizational Behavior, 12e, students receive 24/7 access to resources that promote positive learning outcomes. Students engage with related examples (in various media) and sample practice items, including: • Animated Figures • CBS/BBC Videos About This Book xiii • Self-Assessments quizzes students can use to test themselves on topics such as emotional intelligence, diversity awareness, and intuitive ability. • Management Calendar Including Daily Management Tips • iPhone Applications for Download • Flash Cards • Hot Topic Modules • Crossword Puzzles • Self-Study Questions Measurable Outcomes Throughout each study session, students can assess their progress and gain immediate feedback. WileyPLUS provides precise reporting of strengths and weaknesses, as well as individualized quizzes, so that students are confident they are spending their time on the right things. With WileyPLUS, students always know the exact outcome of their efforts. What do instructors receive with WileyPLUS? WileyPLUS provides reliable, customizable resources that reinforce course goals inside and outside of the classroom as well as visibility into individual student progress. Pre-created materials and activities help instructors optimize their time: Customizable Course Plan WileyPLUS comes with a pre-created Course Plan designed by a subject matter expert uniquely for this course. Simple drag-anddrop tools make it easy to assign the course plan as-is or modify it to reflect your course syllabus. Pre-created Activity Types Include: • • • • • • Questions Readings and Resources Presentation Print Tests Concept Mastery Project Course Materials and Assessment Content: • • • • • • • • Lecture Notes PowerPoint Slides Classroom Response System (Clicker) Questions Image Gallery Instructor’s Manual Gradable Reading Assignment Questions (embedded with online text) Question Assignments: all end-of-chapter problems Testbank Pre- and Post-Lecture Quizzes xiv About This Book • Web Quizzes • Video Teaching Notes—includes questions geared towards applying text concepts to current videos Gradebook WileyPLUS provides instant access to reports on trends in class performance, student use of course materials, and progress towards learning objectives, helping inform decisions and drive classroom discussions. WileyPLUS. Learn More. www.wileyplus.com. Powered by proven technology and built on a foundation of cognitive research, WileyPLUS has enriched the education of millions of students in over 20 countries around the world. contributors Cases for Critical Thinking Barry R. Armandi, State University of New York, David S. Chappell, Ohio University, Bernardo M. Ferdman, Alliant International University, Placido L. Gallegos, Southwest Communications Resources, Inc. and the Kaleel Jamison Consulting Group. Inc., Carol Harvey, Assumption College, Ellen Ernst Kossek, Michigan State University, Barbara McCain, Oklahoma City University, Mary McGarry, Empire State College, Marc Osborn, R&R Partners, Phoenix, AZ, Franklin Ramsoomair, Wilfrid Laurier University, Hal Babson and John Bowen of Columbus State Community College. Experiential Exercises and Self-Assessment Inventories Barry R. Armandi, State University of New York, Old Westbury, Ariel Fishman, The Wharton School, University of Pennsylvania, Barbara K. Goza, University of California, Santa Cruz, D.T. Hall, Boston University, F.S. Hall, University of New Hampshire, Lady Hanson, California State Polytechnic University, Pomona, Conrad N. Jackson, MPC, Inc., Mary Khalili, Oklahoma City University, Robert Ledman, Morehouse College, Paul Lyons, Frostburg State University, J. Marcus Maier, Chapman University, Michael R. Manning, New Mexico State University, Barbara McCain, Oklahoma City University, Annie McKee, The Wharton School, University of Pennsylvania, Bonnie McNeely, Murray State University, W. Alan Randolph, University of Baltimore, Joseph Raelin, Boston College, Paula J. Schmidt, New Mexico State University, Susan Schor, Pace University, Timothy T. Serey, Northern Kentucky University, Barbara Walker, Diversity Consultant, Paula S. Weber, New Mexico Highlands University, Susan Rawson Zacur, University of Baltimore. xv acknowledgments Organizational Behavior, 12th Edition, benefits from insights provided by a dedicated group of management educators from around the globe who carefully read and critiqued draft chapters of this edition. We are pleased to express our appreciation to the following colleagues for their contributions to this new edition. Heidi Barclay, Metropolitan State Nancy Fredericks, San Diego State Cindy Geppert, Palm Beach State College Jim Maddox, Friends University Randy McCamey, Tarleton State Wendy Smith, U Del Barcley Johnson, Western Michigan U. Lam Nguyen, Palm Beach State College Robert Blanchard, Salem State Suzanne Crampton, Grand Valley State University Jody Tolan, USC Marshall Gary J. Falcone, Ed.D., LaSalle University Marcia Marriott, Monroe CC Edward Kass, USFCA Sidney Siegel, Drexel We also thank those reviewers who contributed to the success of previous editions. Merle Ace Chi Anyansi-Archibong Terry Armstrong Leanne Atwater Forrest Aven Steve Axley Abdul Aziz Richard Babcock David Baldridge Michael Banutu-Gomez Robert Barbato Richard Barrett Nancy Bartell Anna Bavetta Robb Bay Hrach Bedrosian Bonnie Betters-Reed Gerald Biberman Melinda Blackman Lisa Bleich Mauritz Blonder Dale Blount G. B. Bohn William Bommer H. Michal Boyd Pat Buhler Gene E. Burton Roosevelt Butler Ken Butterfield xvi Joseph F. Byrnes Michal Cakrt Tom Callahan Daniel R. Cillis Nina Cole Paul Collins Ann Cowden Deborah Crown Roger A. Dean Robert Delprino Emmeline De Pillis Pam Dobies Delf Dodge Dennis Duchon Michael Dumler Ken Eastman Norb Elbert Theresa Feener Janice M. Feldbauer Claudia Ferrante Mark Fichman Dalmar Fisher J. Benjamin Forbes Dean Frear Cynthia V. Fukami Normandie Gaitley Daniel Ganster Joe Garcia Virginia Geurin Robert Giambatista Manton Gibbs Eugene Gomolka Barbara Goodman Stephen Gourlay Frederick Greene Richard Grover Bengt Gustafsson Peter Gustavson Lady Alice Hanson Don Hantula Kristi Harrison William Hart Nell Hartley Neil J. Humphreys David Hunt Eugene Hunt Howard Kahn Harriet Kandelman Paul N. Keaton Andrew Klein Leslie Korb Peter Kreiner Eric Lamm Donald Lantham Jim Lessner Les Lewchuk Kristi M. Lewis Robert Liden Acknowledgments xvii Beverly Linnell Kathy Lippert Michael London Michael Lounsbury Carol Lucchesi David Luther Lorna Martin Tom Mayes Daniel McAllister Douglas McCabe James McFillen Jeanne McNett Charles Milton Herff L. Moore David Morand David Morean Sandra Morgan Paula Morrow Richard Mowday Christopher Neck Linda Neider Judy C. Nixon Regina O’Neill Dennis Pappas Edward B. Parks Robert F. Pearse Lawrence Peters Prudence Pollard Joseph Porac Samuel Rabinowitz Franklin Ramsoomair Clint Relyea Bobby Remington Charles L. Roegiers Steven Ross Joel Rudin Michael Rush Robert Salitore Terri Scandura Mel Schnake Holly Schroth L. David Schuelke Richard J. Sebastian Anson Seers William Sharbrough R. Murray Sharp Ted Shore Allen N. Shub Sidney Siegal Dayle Smith Mary Alice Smith Walter W. Smock Pat Sniderman Ritch L. Sorenson Shanthi Srinivas Paul L. Starkey Robert Steel Ronni Stephens Ron Stone Tom Thompson Ed Tomlinson Sharon Tucker Nicholas Twigg Tony Urban Ted Valvoda Joyce Vincelette David Vollrath Andy Wagstaff W. Fran Waller Charles Wankel Edward Ward Fred A. Ware, Jr. Andrea F. Warfield Harry Waters, Jr. Joseph W. Weiss Deborah Wells Robert Whitcomb Donald White Bobbie Williams Barry L. Wisdom Wayne Wormley Barry Wright Kimberly Young Raymond Zammuto We are grateful for all the hard work of the supplements authors who worked to develop the comprehensive ancillary package described above. We thank Andrea Smith-Hunter, Siena College, for preparing the Instructor’s Resource Guide, Amit Shah, Frostburg University, for creating the Test Bank and the web quizzes, Karen Edwards, Chemeketa Community College, for developing the PowerPoint presentations, and Stacy Shriver, University of Colorado, Boulder, for writing the Video Teaching Notes. We thank Brandon Warga of Kenyon College for his chapter opening vignettes, and Robert (Lenie) Holbrook of Ohio University for both the OB in Popular Culture feature and the creative instructor’s guide Art Imitates Life. As always, the support staff at John Wiley & Sons was most helpful in the various stages of developing and producing this edition. We would especially like to thank Lisé Johnson (Acquisitions Editor), George Hoffman (Publisher), Susan McLaughlin (Developmental Editor), Sarah Vernon (Associate Editor), and Melissa Solarz (Editorial Assistant) for their extraordinary efforts in support of this project. They took OB to heart and did their very best to build a high-performance team in support of this book. We thank everyone at Wiley for maintaining the quest for quality and timeliness in all aspects of the book’s content and design. Special gratitude goes to Maddy Lesure as the creative force behind the new design. We also thank Erin Bascom and Suzanne Ingrao of Ingrao Associates for their excellent production and design assistance, Allie Morris for overseeing the media development, and Amy Scholz for leading the marketing campaign. Thank you everyone!! brief contents part 1 Organizational Behavior Today part 2 Individual Behavior and Performance 1 Introducing Organizational Behavior 3 2 3 4 5 6 Individual Differences, Values, and Diversity 25 Emotions, Attitudes, and Job Satisfaction 53 Perception, Attribution, and Learning 75 Motivation Theories 101 Motivation and Performance 121 part 3 Teams and Teamwork 7 8 9 10 Teams in Organizations 145 Teamwork and Team Performance 169 Decision Making and Creativity 195 Conflict and Negotiation 219 part 4 Influence Processes and Leadership 11 12 13 14 Communication and Collaboration 241 Power and Politics 263 Leadership Essentials 291 Leadership Challenges and Organizational Change 319 part 5 Organizational Context 15 16 17 Organizational Culture and Innovation 347 Organizational Goals and Structures 373 Strategy, Technology, and Organizational Design 399 OB Skills Workbook Learning Style Inventory W-9 Student Leadership Practices Inventory W-13 Self-Assessment Portfolio W-33 Team and Experiential Exercises W-55 Cases for Critical Thinking W-99 OB Module Online Research Methods in OB xviii contents part 1 1 Organizational Behavior Today Diversity 42 Importance of Diversity 42 Types of Diversity 42 Challenges in Managing Diversity 47 Introducing Organizational Behavior 3 Introducing Organizational Behavior 4 Why Organizational Behavior Is Important 4 Scientific Foundations of Organizational Behavior 4 Organizational Behavior in a Changing World 6 Organizations as Work Settings 8 Organizational Behavior in Context 9 Organizational Environments and Stakeholders 9 Diversity and Multiculturalism 10 Management and Leadership 11 Managerial Activities and Roles 12 Managerial Skills 13 Leadership in Organizations 14 Ethical Management and Leadership 16 Learning about Organizational Behavior 17 Learning from Experience 18 Learning Styles 18 Learning Guide to Organizational Behavior 12/E 19 Chapter 1 Study Guide 20 part 2 2 Individual Behavior and Performance Individual Differences, Values, and Diversity 25 Individual Differences 26 Self-Awareness and Awareness of Others 26 Components of Self 26 Nature versus Nurture 27 Chapter 2 Study Guide 48 3 Emotions, Attitudes, and Job Satisfaction 53 Understanding Emotions and Moods 54 The Nature of Emotions 54 Emotional Intelligence 54 Types of Emotions 56 The Nature of Moods 56 How Emotions and Moods Influence Behavior 57 Emotion and Mood Contagion 58 Emotional Labor 58 Cultural Aspects of Emotions and Moods 59 Emotions and Moods as Affective Events 60 How Attitudes Influence Behavior 60 Components of Attitudes 61 Linking Attitudes and Behavior 62 Attitudes and Cognitive Consistency 62 Types of Job Attitudes 62 Job Satisfaction and Its Importance 63 Components of Job Satisfaction 64 Job Satisfaction Trends 65 How Job Satisfaction Influences Work Behavior 66 Linking Job Satisfaction and Job Performance 67 Chapter 3 Study Guide 70 Personality 29 Big Five Personality Traits 29 Social Traits 29 Personal Conception Traits 31 Emotional Adjustment Traits 34 Personality and Stress 35 Sources of Stress 35 Outcomes of Stress 36 Managing Stress 37 Values 38 Sources of Values 38 Personal Values 39 Cultures Values 40 4 Perception, Attribution, and Learning 75 The Perception Process 76 Factors Influencing Perception 76 Information Processing and the Perception Process 78 Perception, Impression Management, and Social Media 80 Common Perceptual Distortions 81 Stereotypes 81 Halo Effects 83 Selective Perception 83 Projection 84 xix xx Contents Contrast Effects 84 Self-Fulfilling Prophecies 85 Performance Measurement Methods 128 Performance Measurement Errors 131 Perception, Attribution, and Social Learning 86 Importance of Attributions 86 Attribution Errors 87 Attribution and Social Learning 87 Learning by Reinforcement 89 Operant Conditioning and the Law of Effect 89 Positive Reinforcement 90 Negative Reinforcement 94 Punishment 94 Extinction 94 Reinforcement Pros and Cons 95 Alternative Work Schedules 136 Compressed Workweeks 137 Flexible Working Hours 137 Job Sharing 138 Telecommuting 138 Part-Time Work 138 Chapter 4 Study Guide 95 Chapter 6 Study Guide 139 5 Motivation Theories 101 What Is Motivation? 102 Motivation Defined 102 Types of Motivation Theories 102 Needs Theories of Motivation 103 Hierarchy of Needs Theory 103 ERG Theory 104 Acquired Needs Theory 104 Two-Factor Theory 106 Equity Theory of Motivation 107 Equity and Social Comparisons 107 Equity Theory Predictions and Findings 108 Equity and Organizational Justice 109 Expectancy Theory of Motivation 111 Expectancy Terms and Concepts 111 Expectancy Theory Predictions 111 Expectancy Implications and Research 112 Goal-Setting Theory of Motivation 112 Motivational Properties of Goals 113 Goal-Setting Guidelines 113 Goal Setting and the Management Process 115 Chapter 5 Study Guide 116 6 Motivation and Performance 121 Motivation and Rewards 122 Integrated Model of Motivation 122 Intrinsic and Extrinsic Rewards 122 Pay for Performance 124 Motivation and Performance Management 127 Performance Management Process 127 Motivation and Job Design 131 Scientific Management 132 Job Enlargement and Job Rotation 133 Job Enrichment 133 Job Characteristics Model 134 part 3 7 Teams and Teamwork Teams in Organizations 145 Teams in Organizations 146 Teams and Teamwork 146 What Teams Do 147 Organizations as Networks of Teams 147 Cross-Functional and Problem-Solving Teams 149 Self-Managing Teams 150 Virtual Teams 151 Team Effectiveness 152 Criteria of an Effective Team 152 Synergy and Team Benefits 153 Social Facilitation 153 Social Loafing and Team Problems 153 Stages of Team Development 156 Forming Stage 156 Storming Stage 156 Norming Stage 157 Performing Stage 157 Adjourning Stage 158 Understanding Teams at Work 158 Open Systems Model of Teams 158 Team Resources and Setting 159 Nature of the Team Task 160 Team Size 160 Membership Composition of the Team 161 Diversity and Team Performance 162 Team Processes 164 Chapter 7 Study Guide 164 Contents xxi 8 Teamwork and Team Performance 169 High Performance Teams 170 Characteristics of High-Performance Teams 170 The Team-Building Process 171 Team-Building Alternatives 172 Improving Team Processes 173 Entry of New Members 174 Task and Maintenance Leadership 174 Roles and Role Dynamics 175 Team Norms 176 Team Cohesiveness 179 Inter-Team Dynamics 180 Improving Team Communications 182 Communication Networks 183 Proxemics and Use of Space 184 Communication Technologies 184 Improving Team Decisions 185 Ways Teams Make Decisions 185 Assets and Liabilities of Team Decisions 187 Groupthink Symptoms and Remedies 188 Team Decision Techniques 189 Chapter 8 Study Guide 190 9 10 Conflict and Negotiation 219 Conflict in Organizations 220 Types of Conflict 220 Levels of Conflict 220 Functional and Dysfunctional Conflict 222 Culture and Conflict 223 Conflict Management 224 Stages of Conflict 224 Hierarchical Causes of Conflict 225 Contextual Causes of Conflict 225 Indirect Conflict Management Strategies 226 Direct Conflict Management Strategies 228 Negotiation 230 Negotiation Goals and Outcomes 230 Ethical Aspects of Negotiation 232 Organizational Settings for Negotiation 232 Negotiation Strategies 232 Approaches to Distributive Negotiation 233 How to Gain Integrative Agreements 234 Common Negotiation Pitfalls 235 Third-Party Roles in Negotiation 235 Chapter 10 Study Guide 237 Decision Making and Creativity 195 The Decision-Making Process 196 Steps in Decision Making 196 Ethical Reasoning and Decision Making 197 Types of Decisions 200 Decision Environments 201 Risk Management in Decision Making 202 Decision-Making Models 202 Classical Decision Model 203 Behavioral Decision Model 203 Systematic and Intuitive Thinking 204 Decision-Making Traps and Issues 205 Judgmental Heuristics 205 Decision Biases 206 Knowing When to Decide 206 Knowing Who to Involve 207 Knowing When to Quit 209 Creativity in Decision Making 211 Stages of Creative Thinking 211 Personal Creativity Drivers 212 Team Creativity Drivers 212 Chapter 9 Study Guide 214 part 4 11 Influence Processes and Leadership Communication and Collaboration 241 The Nature of Communication 242 The Communication Process 242 Feedback and Communication 243 Nonverbal Communication 244 Interpersonal Communication 245 Communication Barriers 245 Active Listening 246 Cross-Cultural Communication 248 Organizational Communication 251 Communication Channels 251 Communication Flows 252 Status Effects 255 Collaborative Work Environments 255 Collaboration Technologies 255 Interactional Transparency 256 Supportive Communication Principles 257 Chapter 11 Study Guide 258 xxii Contents 12 Power and Politics 263 Power and Influence 264 Interdependence, Legitimacy, and Power 264 Obedience 265 Acceptance of Authority and the Zone of Indifference 266 Sources of Power and Influence 268 Position Power 268 Personal Power 270 Power and Influence Capacity 272 Relational Influence Techniques 274 Empowerment 275 Keys to Empowerment 275 Power as an Expanding Pie 276 From Empowerment to Valuing People 277 Organizational Politics 278 Traditions of Organizational Politics 278 Politics of Self-Protection 281 Politics and Governance 283 Chapter 12 Study Guide 286 13 Leadership Essentials 291 Leadership 292 Managers versus Leaders 292 Trait Leadership Perspectives 293 Behavioral Leadership Perspectives 294 Situational Contingency Leadership 296 Fiedler’s Leadership Contingency View 296 Path-Goal View of Leadership 300 Hersey and Blanchard Situational Leadership Model 301 Substitutes for Leadership 304 Follower-Centered Approaches 305 Implicit Leadership Theories (ILTs) 305 Implicit Followership Theories 307 Inspirational and Relational Leadership Perspectives 309 Charismatic Leadership 309 Transactional and Transformational Leadership 310 Leader—Member Exchange Theory 313 Chapter 13 Study Guide 314 14 Leadership Challenges and Organizational Spiritual Leadership 320 Servant Leadership 322 Ethical Leadership 323 Shared Leadership 324 Shared Leadership in Work Teams 324 Shared Leadership and Self-Leadership 326 Leadership across Cultures 327 The GLOBE Perspective 328 Leadership Aspects and Culture 329 Culturally Endorsed Leadership Matches 330 Universally Endorsed Aspects of Leadership 331 Leading Organizational Change 332 Contexts for Leadership Action 332 Leaders as Change Agents 335 Planned Change Strategies 338 Resistance to Change 339 Chapter 14 Study Guide 342 part 5 15 Organizational Context Organizational Culture and Innovation 347 Organizational Culture 348 Functions of Organizational Culture 348 Subcultures and Countercultures 350 National Culture and Corporate Culture 351 Understanding Organizational Cultures 353 Layers of Cultural Analysis 353 Stories, Rites, Rituals, and Symbols 354 Cultural Rules and Roles 355 Shared Values, Meanings, and Organizational Myths 356 Innovation in Organizations 360 The Process of Innovation 361 Product and Process Innovations 362 Balancing Exploration and Exploitation 364 Managing Organizational Culture and Innovation 365 Management Philosophy and Strategy 365 Building, Reinforcing, and Changing Culture 366 Tensions Between Cultural Stability and Innovation 367 Chapter 15 Study Guide 368 Change 319 16 Moral Leadership 320 Organizational Goals 374 Societal Goals 374 Authentic Leadership 320 Organizational Goals and Structures 373 Output Goals 375 Systems Goals 375 Hierarchy and Control 377 Organizations as Hierarchies 377 Controls Are a Basic Feature 380 Centralization and Decentralization 383 Organizing and Coordinating Work 384 Traditional Types of Departments 385 Coordination 388 Bureaucracy and Beyond 392 Mechanistic Structures and the Machine Bureaucracy 392 Organic Structures and the Professional Bureaucracy 393 Hybrid Structures 393 Chapter 16 Study Guide 394 17 Strategy, Technology, and Organizational Design 399 Strategy and Organizational Learning 400 Strategy 400 Organizational Learning 401 Linking Strategy and Organizational Learning 403 Strategy and Organizational Design 404 Organizational Design and Strategic Decisions 404 Organizational Design, Age, and Growth 405 Smaller Size and the Simple Design 406 Technology and Organizational Design 408 Operations Technology and Organizational Design 408 Adhocracy as a Design Option for Innovation and Learning 409 Information Technology and Organizational Design 411 Environment and Organizational Design 413 Environmental Complexity 414 Using Networks and Alliances 415 Strategic Leadership of the Whole Organization 416 Strategic Leadership and the Challenges at Multiple Levels 416 Developing a Top-Management Team 417 Using Top-Management Leadership Skills 419 Chapter 17 Study Guide 421 OB Skills Workbook W-1 Learning Style Inventory W-9 Student Leadership Practices Inventory W-13 Self-Assessment Portfolio W-33 Team and Experiential Exercises W-55 Cases for Critical Thinking W-99 Glossary G-1 Self-Test Answers ST-1 Notes N-1 Photo Credits PC-1 Organization Index OI-1 Name Index NI-1 Subject Index SI-1 The Tonight Show: Things Don’t Always Go as Planned The peacock was feeling the heat. Affiliate station owners were grumbling to NBC that The Jay Leno Show, the comedian’s new prime-time project after passing the Tonight Show torch to Conan O’Brien, was bad for ratings and would turn off viewers. Even worse, Leno’s show wasn’t on the air yet. High-ranking NBC exec Jeff Zucker, having earlier turned around The Today Show, offered a deal. Leno takes Conan’s slot but is shortened to 30 minutes. Conan keeps The Tonight Show but moves to midnight. The deal: It came together like an “after-school special on the Don’ts of leadership transitions,” noted HR consultant J.P. Elliot.a The result: A PR nightmare dubbed The Jaypocalypse. Public trash-talking by all parties. And the defection of a serious chunk of viewers with strong brand loyalty and purchasing power. Only one day after the deal was announced, Conan released his earnest “People of Earth” statement, quickly winning fans, a visible majority of fellow comedians, and, seemingly, almost everyone on Twitter. In contrast, Leno often appeared befuddled in interviews, with only Jerry Seinfeld and Oprah supporting him in the press. “So what does NBC do? If you are making buggy whips and no one is buying buggies anymore, do you keep making buggy whips?” —Jay Leno.b The aftermath: Eight months later, Leno was back behind the Tonight Show desk. Conan had a home on TBS. NBC was down viewers, sponsors, and cash, having paid $43 million to break Conan’s contract. The lesson to be learned: “The real culprit here,” says consultant Elliot, “[is] NBC’s lack of ability to execute their succession plan.” But just whose failure was that? Perhaps that’s a question best answered by Jeff Zucker as he ponders the complexities of human behavior in organizations. Quick Summary • After five years of waiting, Conan O’Brien takes the reins of The Tonight Show from Jay Leno. • Leno, unwilling to step away, launches a prime-time talk show. Affiliates complain even before the show airs. • To rescue Leno, NBC Universal proposes bumping Conan to 12:05 a.m., Leno to 11:35 p.m. Public acrimony ensues. • NBC Universal spends an estimated one-third of the cost of breaking Leno’s contract to fire Conan. Leno’s show airs, sputters. O’Brien sells out a 30-city comedy tour before launching Conan on TBS. FYI 1. Time for Conan O’Brien’s Twitter followers to surpass Jay Leno’s: under 60 minutes.c 2. Cost of breaking Leno’s NBC contract: Estimated $150 million. Cost of breaking Conan’s NBC contract: $45 million.d 2 people make the difference 1 Introducing Organizational Behavior the key point People in all of their rich diversity are the basic building blocks of organizations. Everyone deserves to be respected at work and to be satisfied with their jobs and accomplishments. Problems like those with the Tonight Show don’t need to happen. The field of organizational behavior offers many insights into managing individuals and teams for high performance in today’s new workplace. chapter at a glance What Is Organizational Behavior and Why Is It Important? What Are Organizations Like as Work Settings? What Is the Nature of Management and Leadership in Organizations? How Do We Learn About Organizational Behavior? ETHICS IN OB IS MANAGEMENT A PROFESSION? FINDING THE LEADER IN YOU BANKER SHOWS GENEROSITY CAN TRIUMPH OVER GREED OB IN POPULAR CULTURE what’s inside? MORAL MANAGEMENT AND JOHN Q RESEARCH INSIGHT WOMEN MIGHT MAKE BETTER LEADERS 3 4 1 Introducing Organizational Behavior Introducing Organizational Behavior LEARNING ROADMAP Why Organizational Behavior Is Important / Scientific Foundations of Organizational Behavior / Organizational Behavior in a Changing World Whether your career unfolds in entrepreneurship, corporate enterprise, public service, or any other occupational setting, it is always worth remembering that people are the basic building blocks of organizational success. Organizations do well when the people in them work hard to achieve high performance, as individuals and as members of teams. Creating success requires respect for everyone’s needs, talents, and aspirations, as well as an understanding of the dynamics of human behavior in organizational systems. This book is about people, everyday people like you and like us, who work and pursue careers in today’s highly demanding settings. It is about people who seek fulfillment in their lives and jobs in a variety of ways and in uncertain times. It is about the challenges of leadership, ethics, globalization, technology utilization, diversity, work–life balance, and other social issues. And this book is also about how our complex environment requires people and organizations to learn and to continuously develop in the quest for high performance and promising futures. Why Organizational Behavior Is Important • Organizational behavior is the study of individuals and groups in organizations. In this challenging era, the body of knowledge we call organizational behavior offers many insights of great value. Called OB for short, organizational behavior is the study of human behavior in organizations. It is an academic discipline devoted to understanding individual and group behavior, interpersonal processes, and organizational dynamics. Learning about OB can help you expand your potential for career success in the dynamic, shifting, and complex workplaces of today—and tomorrow. OB is a knowledge base that helps people work together to improve the performance of organizations. Scientific Foundations of Organizational Behavior As far back as a century ago, consultants and scholars were giving increased attention to the systematic study of management and organizational practices. Although the early focus was initially on physical working conditions, principles of administration, and industrial engineering, interest broadened to include the human factor. This gave impetus to research dealing with individual attitudes, group dynamics, and the relationships between managers and workers. From this historical foundation, organizational behavior emerged as a scholarly discipline devoted to scientific understanding of individuals and groups in organizations, and of the performance implications of organizational processes, systems, and structures.1 Interdisciplinary Body of Knowledge Organizational behavior is an interdisciplinary body of knowledge with strong ties to the behavioral sciences—psychology, Introducing Organizational Behavior 5 sociology, and anthropology—as well as to allied social sciences such as economics and political science. OB is unique, however, in its goals of integrating the diverse insights of these other disciplines and applying them to real-world organizational problems and opportunities. The ultimate goal of OB is to improve the performance of people, groups, and organizations, and to improve the quality of work life overall. Use of Scientific Methods The field of organizational behavior uses scientific methods to develop and empirically test generalizations about behavior in organizations. OB scholars often propose and test models—simplified views of reality that attempt to identify major factors and forces underlying real-world phenomena. These models link independent variables—presumed causes— with dependent variables—outcomes of practical value and interest. Here, for example, is a very basic model that describes one of the findings of OB research—job satisfaction (independent variable) influences absenteeism (dependent variable). Job Satisfaction ⫹ ⫺ ⫺ ⫹ Absenteeism Notice that “⫹” and “⫺” signs in the above model indicate that as job satisfaction increases, absenteeism tends to go down, and as job satisfaction decreases, absenteeism often goes up. As you look at this model you might ask what other dependent variables are important to study in OB—perhaps things like task performance, ethical behavior, work stress, incivility, team cohesion, and leadership effectiveness. In fact, job satisfaction can also be a dependent variable in its own right. What independent variables do you believe might explain whether satisfaction will be high or low for someone doing a service job like an airline flight attendant or a managerial one like a school principal? Figure 1.1 describes a set of research methods commonly used by OB researchers to study models and the relationships among variables. These methods are based on scientific thinking. This means (1) the process of data collection is controlled and systematic, (2) proposed explanations are carefully tested, and (3) only explanations that can be rigorously verified are accepted. Focus on Application As already suggested, the science of organizational behavior focuses on applications that can make a real difference in how organizations and people in them perform. Examples of the many practical research questions addressed by the discipline of OB and reviewed in this book include: How should rewards such as merit pay raises be allocated? How can jobs be designed for both job satisfaction and high performance? What are the ingredients of successful teamwork? How can a manager deal with resistance to change? Should leaders make decisions by individual, consultative, or group methods? How can “win–win” outcomes be achieved in negotiations? What causes unethical and socially irresponsible behavior by people in organizations? Contingency Thinking Rather than assuming that there is one “best” or universal answer to questions such as those just posed, OB recognizes that management • Models are simplified views of reality that attempt to explain realworld phenomena. • Independent variables are presumed causes that influence dependent variables. • Dependent variables are outcomes of practical value and interest that are influenced by independent variables. 6 1 Introducing Organizational Behavior Field studies in real-life organizational settings Meta analyses using statistics to pool results of different empirical studies Figure 1.1 Common scientific research methods in organizational behavior. • Contingency thinking seeks ways to meet the needs of different management situations. • Evidence-based management uses hard facts and empirical evidence to make decisions. Laboratory studies Sources of research insight in OB in simulated and controlled settings Survey studies Case studies using questionnaires and interviews in sample populations looking in depth at single situations practices must be tailored to fit the exact nature of each situation––this is called contingency thinking. In fact, one of the most accepted conclusions of scientific research to date is that there is no single best way to manage people and organizations. Stated a bit differently, contingency thinking recognizes that there are no cookie-cutter solutions that can be universally applied to solve organizational problems. Responses must be crafted to best fit the circumstances and people involved. As you might expect, this is where solid scientific findings in organizational behavior become very helpful. Many examples are provided in the Research Insight feature found in each chapter. An essential responsibility of any science is to create and test models that offer evidence-based foundations for decision making and action. A book by scholars Jeffrey Pfeffer and Robert Sutton defines evidence-based management as making decisions on “hard facts”—that is about what really works, rather than on “dangerous half-truths”—things that sound good but lack empirical substantiation.2 One of the ways evidence-based thinking manifests itself in OB is through a contingency approach in which researchers identify how different situations can best be understood and handled. In a time of complex globalization, for example, it’s important for everyone, from managers and employees to government leaders, to understand how OB theories and concepts apply in different countries.3 Although it is relatively easy to conclude that what works in one culture may not work as well in another, it is far harder to describe how specific cultural differences can affect such things as motivation, job satisfaction, leadership style, negotiating tendencies, and ethical behavior. Fortunately, OB is now rich with empirically based insights into crosscultural issues. Organizational Behavior in a Changing World With the recent economic turmoil, financial crisis, and recession, there isn’t any doubt that organizations and their members face huge challenges. Talk to friends Introducing Organizational Behavior 7 RESEARCH INSIGHT Women Might Make Better Leaders No one doubts there are good and bad leaders of both genders. But research by Alice Eagley and her colleagues at Northwestern University suggests that women are often perceived as more likely than men to use leadership styles that result in high performance by followers. In a meta-analysis that statistically compared the results of 45 research studies dealing with male POSSIBLE LEADERSHIP and female leadership styles, Eagley and her team STRENGTHS OF WOMEN concluded that women are frequently described as • “Transformational” leading by inspiring, exciting, mentoring, and stimulating creativity. They • Good at mentoring point out that these behaviors have “transformational” qualities that build • Very inspiring stronger organizations through innovation and teamwork. Women also • Encourage creativity score higher on rewarding positive performance, while men score higher in • Show excitement about goals punishing and correcting mistakes. • Reward positive performance Eagley and her colleagues explain the findings in part by the fact that followers are more accepting of a transformational style when the leader is female, and that the style comes more naturally to women because of its emphasis on nurturing. They also suggest that because women may have to work harder than men to succeed, their leadership skills get tough tests and end up being better developed. Do the Research What do you think: is this study on track? Conduct an interview study of people working for female and male managers. Ask the question: Do women lead differently from men? Organize the responses and prepare an analysis that answers your research question. Although not scientific, your study could prove quite insightful. Source: Alice H. Eagley, Mary C. Johannesen-Smith and Marloes I. van Engen, “Transformational, Transactional and Laissez-Faire Leadership: A Meta-Analysis of Women and Men,” Psychological Bulletin 24.4 (2003), pp. 569–591. and follow the news headlines. Jobs are still hard to come by for new college graduates; unemployment remains high; those with jobs often face the conflicting demands of work and family responsibilities. You’ll notice organizations adopting new features, changing work processes and practices, and trying different strategies. At the same time, they’re dealing with employees, customers, and clients whose needs, values, and tastes seem to be constantly shifting. Things have actually been changing for quite some time in our work environments, but recent events are especially dramatic in affecting both the nature and pace of change. The comments of consultant Tom Peters seem especially relevant. He once called the changing environment of organizations a “revolution that feels something like this: scary, guilty, painful, liberating, disorienting, exhilarating, empowering, frustrating, fulfilling, confusing, and challenging. In other words, it feels very much like chaos.”4 The environment of change in which we now live and work calls for lots of learning and continuous attention. The field of OB recognizes these trends in what 8 1 Introducing Organizational Behavior Things Are Changing as the Facebook Generation Goes to Work people expect and value in terms of human behavior in organizations.5 • Commitment to ethical behavior: Highly publicized scandals involving unethical and Call them “Generation illegal practices prompt concerns for ethical F,” short for the behavior in the workplace; there is growing Facebook Generation. intolerance for breaches of public faith by They are heavily into organizations and those who run them. the world of social • Broader views of leadership: New pressures and media, and they are bringing change to the demands mean organizations can no longer workplace. Managerely on just managers for leadership: leadership ment scholar and is valued from all members, found at all levels, consultant Gary Hamel and flows in all directions—not just top-down. says that managers • Emphasis on human capital and teamwork: who want to work well with Gen F have to face up to a new set Success is earned through knowledge, experiof expectations. Here’s his view of Gen F at work. ence, and commitments to people as valuable • No one kills an idea; all ideas deserve a hearing. human assets; work is increasingly team based • Contributions overrule credentials. with a focus on peer contributions. • Authority is earned, not given. • Demise of command-and-control: Traditional • Leaders serve; they don’t command. hierarchical structures and practices are • People choose tasks that interest them. proving incapable of handling today’s chal• Groups are self-organizing and free formed. lenges; they are being replaced by shared leadership, flexible structures, and participatory • Resources flow toward good ideas and projects. work settings that fully value human capital. • Power comes from information sharing. • Influence of information technology: As new • Wisdom lies within the crowd; peer review counts. technologies—including social media—penetrate • Community grows from shared decision making. all aspects of the workplace, implications for • Recognition and joy of accomplishment are great motivators. work arrangements, organizational systems and • Rabble rousing is embraced, not discouraged. processes, and individual behavior are continuously evolving. • Respect for new workforce expectations: The new generation of workers is less tolerant of hierarchy, more high tech, and less concerned about status; organizations are paying more attention to helping members balance work and non-work responsibilities. • Changing concept of careers: New economy jobs require special skill sets and a capacity for continuous skill development; more people now work as independent contractors who shift among employers rather than hold traditional full-time jobs. • Concern for sustainability: Issues of sustainability are top priorities; decision making and goal setting increasingly give attention to the environment, climate justice, and preservation of resources for future generations. Organizations as Work Settings LEARNING ROADMAP • Organizations are collections of people working together to achieve a common purpose. Organizational Behavior in Context / Organizational Environments and Stakeholders / Diversity and Multiculturalism In order to understand the complex field of forces that relate to human behavior in organizations, we need to begin with the nature of the “organization” itself. Simply stated, an organization is a collection of people working together in a Organizations as Work Settings 9 division of labor to achieve a common purpose. This definition describes everything from clubs, voluntary organizations, and religious bodies to entities such as small and large businesses, schools, hospitals, and government agencies. Organizational Behavior in Context The behavior of people in organizations is greatly affected by context. Think about yourself. Do you act differently when you are with your friends, at school, or at work? In many cases the answer is probably “yes,” and the question then becomes: “Why?” To understand behavior in any setting, we must ask ourselves how contextual factors influence it and in what ways. We also need to consider how we are affecting the context. How do our behaviors contribute to the dynamics that are happening to us and around us, and in both positive and negative ways? The bottom line is that a key aspect of understanding organizational behavior is considering the situations, or contexts, in which the behavior occurs. One of the strongest contextual influences on OB is organizational culture— the shared beliefs and values that influence the behavior of organizational members. Former eBay CEO Meg Whitman calls it the “character” of the organization. She says organization culture is “the set of values and principles by which you run a company” and becomes the “moral center” that helps every member understand what is right and wrong in terms of personal behavior.6 Organizational cultures influence the way we feel and act in organizations. In cultures that are more authoritarian and hierarchical, people are hesitant to make decisions and take action on their own, so they tend to show little initiative and wait for approval. In other cultures, people can be extremely competitive and aggressive in the quest for performance results and rewards. Still other cultures are known for their emphasis on speed and agility in dealing with markets and environments, and in generating new ideas and innovations. How these organizational cultures affect people depends on something called “fit”—the match of organizational culture and individual characteristics. People who find a good fit tend to experience confidence and satisfaction in their work; those who find themselves in a bad fit may be more prone to withdraw, experience work stress, and even become angry and aggressive due to dissatisfaction. Just as organizations have cultures, they also have climates. Organizational climate represents the shared perceptions among members regarding what the organization is like in terms of management policies, practices, events, and procedures. You have probably noticed and felt the climate in organizations that you have worked for. In some organizational climates relations among managers and employees are relaxed and informal, with lots of free-flowing communication. But in other climates, managers act distant from employees and emphasize formal work procedures and interactions, with more structured and restricted communication. • Organizational culture is a shared set of beliefs and values within an organization. • Organizational climate represents shared perceptions of members regarding what the organization is like in terms of management policies and practices. Organizational Environments and Stakeholders Figure 1.2 shows that organizations are dynamic open systems. They obtain resource inputs from the environment and transform them into finished goods or services that are returned to the environment as product outputs. If everything works right, suppliers value the organization and continue to provide needed resources, employees value their work and infuse the transformation • Open systems transform human and material resource inputs into finished goods and services. 10 1 Introducing Organizational Behavior RESOURCE INPUTS Information Materials Technology Facilities Money People Figure 1.2 Organizations are open systems that create value while interacting with their environments. • The value chain is a sequence of activities that creates valued goods and services for customers. • Stakeholders are people and groups with an interest or “stake” in the performance of the organization. TRANSFORMATION PROCESS PRODUCT OUTPUTS Organization Finished Goods and Services Work Activity Consumer Feedback processes with their energies and intellects, and customers and clients value the organization’s outputs enough to create a continuing demand for them. We have just described a value chain—the sequence of activities that results in the creation of goods and services of value to customers. It begins with the acquisition of inputs, continues through their transformation into product outputs, and ends when products are distributed to customers and clients who are well served. When the value chain is well managed, the organization is able to sustain operations and, hopefully, prosper over the long run. But when the value chain breaks down due to input problems, transformation problems, or output problems, an organization’s performance suffers and its livelihood may be threatened. In extreme cases the organization can be forced into bankruptcy, such as happened to General Motors and Chrysler in the recent economic downturn, or even go out of existence altogether. A popular and useful way to describe and analyze the external environment of organizations is in terms of stakeholders—people, groups, and institutions that are affected by and thus have an interest or “stake” in an organization’s performance. It is common in OB to recognize customers, owners, employees, suppliers, regulators, local communities, and future generations among the key stakeholders of organizations. Although an organization should ideally operate in ways that best serve all stakeholders, the realities are that conflicting interests can create challenges for decision makers. Consider the possibilities: customers want value pricing and high-quality products, owners want profits and returns on investments, employees want secure jobs with good pay and benefits, suppliers want reliable contracts and on-time payments, regulators want compliance with laws, local communities want good organizational citizenship and community support, and future generations want environmental protection and sustainability of natural resources. Diversity and Multiculturalism Another important aspect of any organization is the makeup of the people within it. Consultant R. Roosevelt Thomas makes the point that positive organi- Management and Leadership 11 zational cultures tap the talents, ideas, and creative potential of all members.7 His point focuses attention on workforce diversity, the presence of individual differences based on gender, race and ethnicity, age, able-bodiedness, and sexual orientation.8 It also highlights multiculturalism as an attribute of organizations that emphasize pluralism, and genuine respect for diversity and individual differences.9 Demographic trends driving workforce diversity in American society are well recognized. There are more women working than ever before. They earn 60 percent of college degrees and fill a bit more than half of managerial jobs.10 The proportion of African Americans, Hispanics, and Asians in the labor force is increasing. By the year 2060, people of color will constitute over 60 percent of the U.S. population; close to 30 percent of the population will be Hispanic.11 A key issue in any organization is inclusion—the degree to which the culture embraces diversity and is open to anyone who can perform a job, regardless of their diversity attributes.12 In practice, however, valuing diversity must still be considered a work in progress. Data show, for example, that women earn only about 75 cents per dollar earned by men; female CEOs earn 85 cents per dollar earned by males. At Fortune 500 companies women hold only 15 CEO jobs and 6.2 percent of top-paying positions; women of color hold only 1.7 percent of corporate officer positions and 1 percent of top-paying jobs.13 Indeed, when Ursula Burns was named CEO of Xerox, she became the first African-American woman to head a Fortune 500 firm.14 • Workforce diversity describes how people differ on attributes such as age, race, ethnicity, gender, physical ability, and sexual orientation. • Multiculturalism refers to pluralism and respect for diversity in the workplace. • Inclusion is the degree to which an organization’s culture respects and values diversity. Management and Leadership LEARNING ROADMAP Managerial Activities and Roles / Managerial Skills / Leadership in Organizations / Ethical Management and Leadership A manager is someone whose job it is to directly support the work efforts of others. Being a manager is a unique challenge with responsibilities that link closely with the field of organizational behavior. At the heart of the matter managers help other people get important things done in timely, high-quality, and personally satisfying ways. And in the workplaces of today this is accomplished more through “helping” and “supporting” than through traditional notions of “directing” and “controlling.” You’ll find the word “manager” is increasingly being replaced in conversations by such terms as “coordinator,” “coach,” or “team leader.” Effective managers help people achieve both high performance and job satisfaction. This definition focuses attention on two key outcomes, or dependent variables, that are important in OB. The first is task performance. You can think of it as the quality and quantity of the work produced or the services provided by an individual, team or work unit, or organization as a whole. The second is job satisfaction. It indicates how people feel about their work and the work setting. OB is quite clear in that managers should be held accountable for both of these results. The first, performance, pretty much speaks for itself. The second, satisfaction, might give you some pause for thought. But just as a valuable machine should not be allowed to break down for lack of proper maintenance, the talents and enthusiasm of an organization’s workforce should never be lost • Managers are persons who support the work efforts of other people. • An effective manager helps others achieve high levels of both performance and satisfaction. • Task performance is the quantity and quality of work produced. • Job satisfaction is a positive feeling about one’s work and work setting. 12 1 Introducing Organizational Behavior Planning Choosing goals and means to achieve them Controlling Measuring performance and ensuring results Team leaders Organizing Creating structures and work systems Managers Leading Inspiring people to work hard Figure 1.3 The management process of planning, organizing, leading, and controlling. or compromised for lack of proper care. In this sense, taking care of job satisfaction today can be considered an investment in tomorrow’s performance potential. Managerial Activities and Roles Anyone serving as a manager or team leader faces a challenging and complicated job. Among the ways that managerial work has been described and taught is through the four functions shown in Figure 1.3: planning, organizing, leading, and controlling. These functions describe what managers are supposed to do in respect to: • Planning sets objectives and identifies the actions needed to achieve them. • Organizing divides up tasks and arranges resources to accomplish them. • Leading creates enthusiasm to work hard to accomplish tasks successfully. • Controlling monitors performance and takes any needed corrective action. • Planning—defining goals, setting specific performance objectives, and identifying the actions needed to achieve them • Organizing—creating work structures and systems, and arranging resources to accomplish goals and objectives • Leading—instilling enthusiasm by communicating with others, motivating them to work hard, and maintaining good interpersonal relations • Controlling—ensuring that things go well by monitoring performance and taking corrective action as necessary In what has become a classic study, Henry Mintzberg described how managers perform these functions while fulfilling the set of 10 managerial roles shown in Figure 1.4.15 A manager’s interpersonal roles involve working directly with other people, hosting and attending official ceremonies (figurehead), creating enthusiasm and serving people’s needs (leader), and maintaining contacts with important people and groups (liaison). The informational roles involve managers exchanging information with other people, seeking relevant information (monitor), sharing it with insiders (disseminator), and sharing it with outsiders (spokesperson). A manager’s decisional roles involve making decisions that affect other people, seeking problems to solve and opportunities to explore (entrepreneur), helping to resolve Management and Leadership 13 Informational Roles Interpersonal Roles How a manager exchanges and processes information Monitor Disseminator Spokesperson How a manager interacts with other people Figurehead Decisional Roles Leader Liaison How a manager uses information in decision making Entrepreneur Disturbance handler Resource allocator Negotiator Figure 1.4 Mintzberg’s 10 roles of effective managers. conflicts (disturbance handler), allocating resources to various uses (resource allocator), and negotiating with other parties (negotiator). Managerial Skills A skill is an ability to translate knowledge into action that results in a desired performance. Robert Katz divides the essential managerial skills into three categories— technical, human, and conceptual.16 He further suggests that the relative importance of these skills varies across the different levels of management. Technical skills are considered more important at entry levels, where supervisors and team leaders must deal with job-specific problems. Senior executives require more conceptual skills as they face sometimes ambiguous problems and deal with complex issues of organizational mission and strategy. Human skills, which are strongly grounded in the foundations of organizational behavior, are consistently important across all managerial levels. • A skill is an ability to turn knowledge into effective action. Technical Skills A technical skill is an ability to perform specialized tasks using knowledge or expertise gained from education or experience. A good example is skill in using the latest communication and information technologies. In the high-tech workplaces of today, technical proficiency in database management, spreadsheet analysis, presentation software, e-mail, video chats and conferencing, and even social media is often a hiring prerequisite. • Technical skill is an ability to perform specialized tasks. Human Skills Central to all aspects of managerial work and team leadership are human skills, or the ability to work well with other people. They show up as a spirit of trust, enthusiasm, and genuine involvement in interpersonal relationships. A person with good human skills will have a high degree of self-awareness and a capacity for understanding or empathizing with the feelings of others. People with this skill are able to interact well with others, engage in persuasive communications, and deal successfully with disagreements and conflicts. An important aspect of human skills is emotional intelligence, or EI. As defined by Daniel Goleman, EI is the ability to understand and manage emotions • Human skill is the ability to work well with other people. • Emotional intelligence is the ability to manage oneself and one’s relationships effectively. 14 1 Introducing Organizational Behavior Team Leadership and Mentoring Give Manager Lots of Satisfaction Managers often get good pay and perks. But lots of responsibility comes along with them. Dea Robinson, a practice administrator for Inpatient Medicine Service in Englewood, Colorado, knows this full well. She manages a five-person team and says satisfaction comes from the variety, challenge, and mentoring aspects of her work. “If you’re in management you have to figure out how to talk to people, get along with people,” she says. both personally and in relationships with others.17 The core elements in emotional intelligence are: • • • • • • Social capital is a capacity to get things done due to relationships with other people. • Conceptual skill is the ability to analyze and solve complex problems. Self-awareness—ability to understand your own moods and emotions Self-regulation—ability to think before acting and to control bad impulses Motivation—ability to work hard and persevere Empathy—ability to understand the emotions of others Social skill—ability to gain rapport with others and build good relationships Human skills in emotional intelligence and interpersonal relationships are essential to success in each of the managerial activities and roles previously discussed. Managers and team leaders need to develop, maintain, and work well with a wide variety of people, both inside and outside the organization.18 These include task networks of specific job-related contacts, career networks of career guidance and opportunity resources, and social networks of trustworthy friends and peers.19 It can be said in this sense that managers must develop and maintain social capital in the form of relationships and networks that they can call upon as needed to get work done through other people. Conceptual Skills In addition to technical and human skills, managers should be able to view the organization or situation as a whole so that problems are always solved for the benefit of everyone concerned. This capacity to think analytically and solve complex and sometimes ambiguous problems is a conceptual skill. It involves the ability to see and understand how systems work and how their parts are interrelated, including human dynamics. Conceptual skill is used to identify problems and opportunities, gather and interpret relevant information, and make good problem-solving decisions. Leadership in Organizations The job of a manager has never been more demanding than it is in today’s dynamic and hypercompetitive work environments. But it is also true that managers alone cannot solve all the complex problems and address all the challenging Management and Leadership 15 Finding the Leader in You BANKER SHOWS GENEROSITY CAN TRIUMPH OVER GREED When we think of outstanding leaders we often think of heroes and celebrate their great accomplishments with national holidays such as Presidents Day (initially for Washington and Lincoln) and Martin Luther King Day. Current and former employees of City National Bank of Florida, one of the oldest and most profitable banks in the state, are considering a day that would honor their CEO, Leonard Abess. Abess bought the bank out of bankruptcy in 1985 for $21 million, all borrowed. City National flourished under his leadership, getting an A1 rating for financial security from TheStreet.com and joining the top 5 percent of all U.S. banks. It was sold to a Spanish bank, Caja Madrid, for almost a billion dollars. Abess didn’t just take his profits and go home. He quietly took $60 million and distributed it to 471 current and former employees. So what made Leonard Abess a hero? He didn’t talk about his generosity publicly until a newspaper discovered it. Abess told the Miami Herald that long before the sale he had been trying to come up with a way to reward employees for their service. “I always thought some day I’m going to surprise them,” Abess said. “I sure as heck don’t need (the money).” He also noted that with the recent recession, bank employees had taken quite a hit on their retirement accounts. He wanted to reach out to the staff and show his appreciation. This wasn’t the first time this heroic banker has shared his wealth. Abess is an active philanthropist who regularly contributes to local medical centers and universities. With all the recent commentary about CEOs receiving hefty bonuses as their firms have experienced declining profitability, it is a nice reminder that some CEOs can be both excellent managers and generous leaders. What’s the Lesson Here? Would you have made the same decision as Abess? Do you think the employees deserved the distribution, or should it go to the executives for their leadership? Would you, like Abess, have included former employees as well? situations in organizations. In today’s organizations there is more recognition that every individual contributes to his or her own performance and job satisfaction and that more people have to be engaged in the leadership process to advance new ideas and new solutions, and to challenge old ways of thinking. It is a new world of management where managers aren’t the only leaders and where part of every manager’s success is based on how well he or she mobilizes leadership contributions from others. Leaders are people who use influence to create change. They have followers because other people see the value of their ideas or suggestions and choose to go along or align with them. Managers, by virtue of their positions of authority, have the opportunity to act as leaders. But they don’t always do so, or do so successfully. Leaders succeed when people follow them not because they have to but because they want to. This positive influence emerges from persuasiveness, competence, and human skills. The Finding the Leader in You feature in each chapter is designed to provide role models and get you thinking about developing your leadership potential. 16 1 Introducing Organizational Behavior ETHICS IN OB IS MANAGEMENT A PROFESSION? The economic recession brought hardship and turmoil to lots of people and organizations. But even as firms performed poorly or failed altogether, many top executives still got high salaries, extra bonuses, and generous severance packages. This happened at the same time many workers lost their jobs, took pay cuts, or had their work hours reduced. If that’s not enough, there’s the Bernard Madoff scandal. Now sentenced to 150 years in prison, he formerly lived lavishly while running an investment Ponzi scheme that bilked individuals, charitable foundations, colleges and universities, and other institutions of many billions of dollars. Does it surprise you that a Harvard Business Review article pointed out that managers are now losing the public trust? To help change things for the better, the authors call for business schools to address management as a profession governed by codes of conduct that “forge an implicit social contract with society.” This is all part of a continuing debate about management ethics and corporate social responsibility. You’ll hear some argue that managers should try to satisfy the interests of many different stakeholders. But others will say that managers should stick to their primary duty—acting to maximize wealth for shareholders. Make Ethics Personal: What is your position on the shareholder wealth versus stakeholder interest debate? Do you agree with the movement to make management a profession? Would professionalizing management really make a difference in terms of ethical accountability and everyday managerial behavior? Organizations are full of leaders, managers and nonmanagers alike. These are people who get listened to by their peers, by their managers, and by people below and higher up in the organization. In contrast to traditional views of leadership flowing downward, lots of leadership flows upward and side-to-side. You can be a leader among your peers by becoming the person people turn to for advice, support, or direction. You can be a leader by convincing higher management to adopt new practices suggested from your level. And, remember the notion of the manager as “coach” and “coordinator” as described earlier? Everytime you act in ways that fit these descriptions, there’s no doubt you’re being a leader. Ethical Management and Leadership • An immoral manager chooses to behave unethically. Having the essential managerial and leadership skills is one thing; using them correctly to get things done in organizations is quite another. And when it comes to ethics and morality, scholar Archie B. Carroll draws a distinction between immoral managers, amoral managers, and moral managers.20 The immoral manager essentially chooses to behave unethically. She or he doesn’t subscribe to any ethical principles, making decisions and acting to gain best personal advantage. Disgraced executives like Bernard Madoff and Learning about Organizational Behavior 17 Amoral leadership, “Negative shift” Leader's impact on ethics mindfulness Moral leadership, “Virtuous shift” Organization's Ethics Center of Gravity others whose unethical acts make headlines fit this billing. The amoral manager, by contrast, acts unethically at times but does so unintentionally. This manager fails to consider the ethics of a decision or behavior. Unintentional ethics lapses that we all must guard against include prejudice from unconscious stereotypes and attitudes, showing bias based on in-group favoritism, and claiming too much personal credit for performance accomplishments.21 Finally, the moral manager incorporates ethics principles and goals into his or her personal behavior. Ethical behavior is a goal, a standard, and even a matter of routine; ethical reasoning is part of every decision, not just an occasional afterthought. Carroll believes that the majority of managers tend to act amorally. If this is true, and because we also know there are also immoral managers around, it is very important to understand personal responsibilities for everyday ethical behavior and leadership. All organization members can and should be ethics leaders. This includes always acting as ethics role models and being willing to take stands in the face of unethical behavior by those above, below, and around them. A review article by Terry Thomas and his colleagues describes how the “ethics center of gravity” shown in Figure 1.5 can be moved positively through moral leadership or negatively through amoral leadership.22 In this view, a moral manager or moral leader always sets an ethics example, communicates ethics values, and champions ethics mindfulness—an “enriched awareness” that causes one to behave with an ethical consciousness from one decision or behavioral event to another. Moral managers and moral leaders contribute to the “virtuous shift” shown in the figure. They help create an organizational culture in which people encourage one another to act ethically as a matter of routine. One of the themes of this book, as reflected in the Ethics in OB feature in each chapter, is that ethics is the responsibility of everyone in the organization. Learning about Organizational Behavior LEARNING ROADMAP Learning from Experience / Learning Styles / Learning Guide to Organizational Behavior 12/E Learning about OB is important because it directly benefits you. It helps you to understand how to work more effectively and be more influential in work situations. Today’s knowledge-based world places a great premium on learning. Only the learners, so to speak, will be able to keep the pace and succeed in a hightech, global, and constantly changing environment. Figure 1.5 Moral leadership, ethics mindfulness, and the virtuous shift. [Source: Developed from Terry Thomas, John R. Schermerhorn Jr., and John W. Dinehart, “Strategic Leadership of Ethical Behavior in Business,” Academy of Management Executive 18 (May 2004), pp. 56–66.] • An amoral manager fails to consider the ethics of a decision or behavior. • A moral manager makes ethical behavior a personal goal. • Ethics mindfulness is an enriched awareness that causes one to consistently behave with ethical consciousness. 18 1 Introducing Organizational Behavior Initial Experience Personal experiences Classroom as an organization In-class exercises, simulations Group project assignments Cases Experimentation Trying new behaviors in work experiences class experiences everyday experiences Figure 1.6 Experiential learning in an OB course. Reflection Personal thought Class discussion Informal discussion Readings Lectures Written assignments Theory Building Theories in readings Theories from lectures Personal theories Theories from other sources Learning from Experience • Learning is an enduring change in behavior that results from experience. • Lifelong learning is continuous learning from everyday experiences. Learning is an enduring change of behavior that results from experience. Lifelong learning involves learning continuously from day-to-day experiences. “Experience,” in this sense, is found in work events and activities, conversations with colleagues and friends, counseling and advice provided by mentors, success models, training seminars and workshops, and other daily opportunities. Lifelong learning will in many respects be a key to your personal and career success. Now is the best time to get a serious start on the process. Figure 1.6 shows how the content and activities of the typical OB course can fit together in an experiential learning cycle.23 The learning sequence begins with initial experience and subsequent reflection. It grows as theory building takes place to try to explain what has happened. Theory is then tested in behavior. Textbooks, readings, class discussions, and other course assignments and activities should help you practice the phases of the learning cycle. Notice that Figure 1.6 assigns to you a substantial responsibility for learning. Along with your instructor, we can offer examples, cases, and exercises to provide you with initial experience. We can even stimulate your reflection and theory building by presenting concepts and discussing their research and practical implications. Sooner or later, however, you must become an active participant in the process; you and only you can do the work required to take full advantage of the learning cycle. Learning Styles Now is also a good time to inquire further into your preferred learning style or tendencies. The end-of-book OB Skills Workbook includes instructions for a Learning Styles self-assessment.24 If you complete it you’ll get feedback on how you like to learn through receiving, processing, and recalling new information. Armed with this understanding, you can take steps to maximize your learning and Learning about Organizational Behavior 19 OB IN POPULAR CULTURE MORAL MANAGEMENT AND JOHN Q Moral managers try to act with ethical principles while immoral managers makes decisions primarily on self-interest. To be sure, many decisions in organizations are quite complicated and their ethical components may be hard to sort out. “John Q” is the story of a desperate father’s attempt to save his dying child. John Archibald (Denzel Washington) learns that his son Mike needs a heart transplant and he does not have sufficient insurance coverage. He decides to take the heart surgeon hostage in the hospital’s emergency room. During a lull, the hostages and medical staff discuss how managed care insurance practices and hospital policies result in treatment decisions that are not always in the best interests of the patient. One hostage questions these practices in light of the medical profession’s Hippocratic Oath. When Mike’s (Daniel Smith) condition worsens, John decides to commit suicide so that a heart will be available. The heart surgeon initially balks for ethical reasons, then agrees to do the surgery. In the end, the sacrifice is not necessary. The hospital gets word that a donor hea...
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Running head: LEADERSHIP VS. MANAGEMENT

Leadership vs. Management
Student’s Name
Institutional Affiliation

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LEADERSHIP VS. MANAGEMENT

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Leadership vs. Management
Introduction
Organizational leadership and management are two aspects that are often considered to
be the same thing by many. Understanding the difference between the two is critical towards
assessing the type of organizational aspect that is present at various organizations. There are also
certain organizations that would be suited with either. It means that there are organizations where
one could work whereas the other could not. According to organizational behavior theories,
management and leadership are different not only in the functions that the leaders or managers
play but based on the organizational structures in which each can fit. This essay assesses some of
the differences between the two with the aim of creating greater insight on their application at the
organizational level.
Body of Essay
One of the main differences between management and leadership is based on the
authority that an individual possesses. In leadership, an individual has people who follow them
whereas in management, workers play different roles that are supposed to accomplish the g...


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