Organizational Behavior Ninth Edition

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1 Organizational Behavior Ninth Edition Robert Kreitner Angelo Kinicki Both of Arizona State University McGraw-Hill Irwin

2 Contents Preface via Summary of Key Concepts 28 Part One The World of Organizational Behavior 1 Chapter One Organizational Behavior: The Quest for People-Centered Organizations and Ethical Conduct 2 Welcome to the World of OB 5 Organizational Behavior: An Interdisciplinary Field 5 Some FAQs about Studying OB 6 A Historical Perspective of OB 7 The Human Relations Movement 8 The Quality Movement 10 The Internet and E-Business Revolution 11 The Need to Build Human and Social Capital 13 Real World Real People Debt-Burdened Students Help Themselves by Building Human and Social Capital 15 The Managerial Context: Getting Things Done with and through Others 15 What Do Managers Do? A Skills Profile st-century Managers 17 The Contingency Approach to Management 18 Real World Real People Businesses Help Develop Nonprofit Sector Leaders 19,. The Ethics Challenge 19 Real World Real People Pennies Add Up at JCPenney 20 A Model of Global Corporate Social Responsibility and Ethics 20 An Erosion of Morality? 22 General Moral Principles 24 How to Improve the Organization's Ethical Climate 25 A Personal Call to Action 26 Learning about OB: Research and a Road Map 26 Five Sources of OB Research Insights 26 A Topical Model for Understanding and Managing OB 27 Key Terms 29 OB in Action Case Study A Passion for the Planet 30 Ethical Dilemma Caught in the Layoff Wringer 31 Web Resources 31 Chapter Two Managing Diversity: Releasing Every Employee's Potential 32 Defining Diversity 35 Layers of Diversity 35 Affirmative Action and Managing Diversity 36 Building the Business Case for Managing Diversity 39 Real World Real People ATA Engineering Inc. Effectively Manages Diversity 40 Increasing Diversity in the Workforce 41 Real World Real People Best Buy Uses a Women's Leadership Forum to Build Employee and Customer Loyalty 43 Managerial Implications of Demographic Diversity 47 Real World Real People Miami Children's Hospital and Shaw Industries Inc. Focus on Improving Employees' English Proficiency 49 The Positive and Negative Effects of Diverse Work Environments 51 Barriers and Challenges to Managing Diversity 54 Organizational Practices Used to Effectively Manage Diversity 55 R Roosevelt Thomas Jr's Generic Action Options 56 Real World Real People Sodexho USA Fosters Mutual Adaptation 58 Summary of Key Concepts 58 Key Terms 59 OB in Action Case Study LeasePlan Effectively Manages Diversity 59 Ethical Dilemma Should Wal-Mart Pull the Plug on Ningbo Beifa Group? 60 Web Resources 61 XXIV

3 Contents XXV ChapterThree Organizational Culture, Socialization, and Mentoring 62 Organizational Culture: Definition and Context 64 Dynamics of Organizational Culture 65 Layers of Organizational Culture 65 Real World Real People Williams-Sonoma's Espoused Values Focus on Employees, Customers, Shareholders, and Ethical Behavior 67 Four Functions of Organizational Culture 69 Types of Organizational Culture 70 Real World Real People Home Depot's Former CEO, Robert Nardelli, Fostered a Hierarchy Culture 74 Outcomes Associated with Organizational Culture 74 The Process of Culture Change 76 Real World Real People Toyota Plans to Restructure in Order to Change Its Culture 79 The Organizational Socialization Process 79 A Three-Phase Model of Organizational Socialization 80 Real World Real People Herbalife International Effectively Uses Onboarding with Executives 82 Practical Application of Socialization Research 82 Embedding Organizational Culture through Mentoring 84 Functions of Mentoring 85 Developmental Networks Underlying Mentoring 85 Personal and Organizational Implications 86 Summary of Key Concepts 88 Key Terms 89 OB in Action Case Study Cisco Systems Uses Its Culture for Competitive Advantage 89 Ethical Dilemma Credit-Card Issuers Have Cultures That Focus on Growth by Targeting Financially Strapped People 90 Web Resources 91 Chapter Four International OB: Managing across Cultures 92 Culture and Organizational Behavior 95 Societal Culture Is Complex and Multilayered 96 Culture Is a Subtle but Pervasive Force 96 Real World Real People Should Anthropologists Go to War? 97 A Model of Societal and Organizational Cultures 97 Developing Cultural Intelligence 98 Ethnocentrism: A Cross-Cultural Roadblock 98 Cultural Paradoxes Require Cultural Intelligence 99 Understanding Cultural Differences 100 High-Context and Low-Context Cultures 100 Nine Cultural Dimensionsfromthe GLOBE Project 102 Individualism versus Collectivism 105 Cultural Perceptions of Time 106 Interpersonal Space 107 Real World Real People Arizona Hospital Blends Modern Medicine with Navajo Traditions 108 Religion 108 Practical Insights from Cross-Cultural Management Research 109 The Hofstede Study: How Well Do US Management Theories Apply in Other Countries? 109 Leadership Lessons from the GLOBE Project 110 Preparing Employees for Successful Foreign Assignments 111 Why Do US Expatriates Fail on Foreign Assignments? 112 A Bright Spot: North American Women on Foreign Assignments 113 Avoiding OB Trouble Spots in Foreign Assignments 113 Real World Real People Training Needs to Fit the Local Culture 115 Summary of Key Concepts 117 Key Terms 118 OB in Action Case Study It's All About Face-to-Face 119 Ethical Dilemma 3M Tries to Make a Difference in Russia 120 Web Resources 120 Part Two Individual Behavior in Organizations 121 Chapter Five Key Individual Differences and the Road to Success 122

4 XXVI Contents Self-Concept 124 Self-Esteem 125 Real World Real People Military Veterans Bring High Self-Efficacy to MBA Programs 128 Self-Efficacy 128 Self-Monitoring 130 Organizational Identification: A Social Aspect of Self- Concept with Ethical Implications 132 Personality: Concepts and Controversy 133 The Big Five Personality Dimensions 133 The Proactive Personality 134 Real World Real People Climbing Life's Mountains Requires the Right People with Proactive Personalities 135 Issue: What about Personality Testing in the Workplace? 136 Abilities (Intelligence) and Performance 136 Abilities and the Need for Sleep 138 Intelligence and Cognitive Abilities 139 Do We Have Multiple Intelligences? 140 Emotions in the Workplace 141 Positive and Negative Emotions 142 Developing Emotional Intelligence 143 Practical Research Insights about Emotional Contagion and Emotional Labor 145 Paving Your Road to Success with Lessons from OB 145 Real World Real People Failure Is Not an Option 146 Psychological Capital 146 Deliberate Practice 147 Luck 148 Humility 148 Summary of Key Concepts 148 Key Terms 149 OB in Action Case Study The Best Advice I Ever Got 150 Ethical Dilemma Is It Time for Performance- Enhancing Drugs in the Workplace? 150 Personal Values 154 Schwartz's Value Theory 154 Value Conflicts 155 Work versus Family Life Conflict 157 Real World Real People Karyn Couvillion Quit Her Job in Response to Work/Family Conflict 158 Attitudes 160 The Nature of Attitudes 160 What Happens When Attitudes and Reality Collide? Cognitive Dissonance 161 How Stable Are Attitudes? 162 Attitudes Affect Behavior via Intentions 162 Real World Real People Attitudes and Beliefs at the Core ofmachinists' Strike at Boeing 164 Key Work Attitudes 165 Organizational Commitment 166 Job Involvement and Employee Engagement 169 Job Satisfaction 170 The Causes of Job Satisfaction 171 Real World Real People Organizations Assess Employees'Job Satisfaction Even during Bad Times 172 Major Correlates and Consequences of Job Satisfaction 173 Real World Real People Phenomenex Inc. Uses Fun to Reduce Absenteeism 175 Counterproductive Work Behaviors 177 Mistreatment of Others 177 Violence at Work 178 Causes and Prevention of CWBs 178 Summary of Key Concepts 179 Key Terms 180 OB in Action Case Study Companies Are Trying to Improve Employee Attitudes during the Recession 180 Ethical Dilemma How Would You Handle Employees Who Fake Illnesses to Take Sick Leave? 181 Web Resources 181 Web Resources 151 Chapter Seven Learning Module A: Self-Management (Web) Social Perception and Attributions 182 ", An Information-Processing Model of Values, Attitudes, Job Satisfaction, and Perception 185 Counterproductive Work Behaviors 152 Four-Stage Sequence and a Working Example 185

5 Contents XXVII Stage 1: Selective Attention/Comprehension 186 Stage 2: Encoding and Simplification 186 Real World Real People In-Store Displays Help Generate Sales 187 Stage 3: Storage and Retention 189 Real World Real People Yukihiro Yamazaki Uses Information in Long-Term Memory to Evaluate a Vehicle's Performance 190 Stage 4: Retrieval and Response 190 Managerial Implications 190 Stereotypes: Perceptions about Groups of People 192 Stereotype Formation and Maintenance 194 Sex-Role Stereotypes 194 Age Stereotypes 195 Racial and Ethnic Stereotypes 196 Real World Real People Tiger Woods Experiences Racial Bias 197 Disability Stereotypes 198 Managerial Challenges and Recommendations 198 Real World Real People Walgreens Effectively Accommodates People with Disabilities 199 Self-Fulfilling Prophecy: The Pygmalion Effect 199 Research and an Explanatory Model 200 Putting the Self-Fulfilling Prophecy to Work 202 Causal Attributions 202 / Kelley's Model of Attribution 203 Attributional Tendencies 204 Managerial Application and Implications 205 Summary of Key Concepts 206 Key Terms 207 OB in Action Case Study Job Offers Are Won and Lost Based on Interviewers' Perceptions of Responses to the Question "What Are Your Weaknesses" 208 Ethical Dilemma Should Brain Scans Be Used to Craft Advertising? 209 Web Resources 209 Chapter Eight Foundations of Motivation 210 Content Theories of Motivation 213 Maslow's Need Hierarchy Theory 213 Alderfer's ERG Theory 214 McClelland's Need Theory 215 Herzberg's Motivator-Hygiene Theory 216 Real World Real People High Achievement Needs Can Lead to Negative Outcomes 217 Process Theories of Motivation 218 Adams's Equity Theory of Motivation 218 Real World Real People Fired Contractor Seeks Revenge against Fannie Mae 219 The Individual-Organization Exchange Relationship 219 Negative and Positive Inequity 219 Dynamics of Perceived Inequity 221 Expanding the Concept of Equity: Organizational Justice 221 Practical Lessons from Equity Theory 222 Vroom's Expectancy Theory 223 Expectancy 224 Instrumentality 224 Valence 225 Vroom's Expectancy Theory in Action 225 Real World Real People Aflac Uses the Principles of Expectancy Theory 226 Research on Expectancy Theory and Managerial Implications 226 Motivation through Goal Setting 227 Goals: Definition and Background 228 How Does Goal Setting Work? 228 Real World Real People Mitsubishi and Emory University Attempt to Set Sustainability Goals 229 Practical Lessons from Goal-Setting Research 229 Motivating Employees through Job Design 231 The Mechanistic Approach 231 Motivational Approaches 232 Real World Real People Tata Consultancy Services Uses Job Rotation 233 Biological and Perceptual-Motor Approaches 235 Putting Motivational Theories to Work 236 Summary of Key Concepts 238 Key Terms 239 OB in Action Case Study The Pay-for-Performance Program among Denver Teachers Hits a Roadblock 240 Ethical Dilemma Should Retrocessions Be Allowed in the United States? 241 Web Resources 241

6 xxviii Contents Chapter Nine Improving Job Performance with Goals, Feedback, Rewards, and Positive Reinforcement 242 Goal Setting 245 Two Types of Goals 246 Management by Objectives 246 Real World Real People Starwood'sNew CEO Frits van Paasschen Runs on Goals 247 Managing the Goal-Setting Process 247 Feedback 250 Two Functions of Feedback 251 Are the Feedback Recipients Ready, Willing, and Able? 251 Real World Real People Culture Trumped Performance Ratings at ITT 253 Practical Lessons from Feedback Research Degree Feedback 254 How to Give Feedback for Coaching Purposes and Organizational Effectiveness 255 Organizational Reward Systems 255 Types of Rewards 256 Reward Distribution Criteria 256 Desired Outcomes of the Reward System 257 The Building Blocks of Intrinsic Rewards and Motivation 257 Why Do Extrinsic Rewards Too Often Fail to Motivate? 259 Pay for Performance 259 Getting the Most out of Extrinsic Rewards and Pay for Performance 261 Real World Real People Should Teachers'Pay Be Tied to Student Performance? 262 Positive Reinforcement 262 Thorndike's Law of Effect 263 Skinner's Operant Conditioning Model 263 Contingent Consequences 264 Schedules of Reinforcement 265 Behavior Shaping 266 Summary of Key Concepts 268 Key Terms 269 OB in Action Case Study The Employee Whisperer 269 Ethical Dilemma Rewarding and Motivating Employees by Ignoring Their Unethical Actions 270 Web Resources 270 Learning Module B: Performance Appraisal (Web) Part Three Group and Social Processes 271 Chapter Ten Group Dynamics 272 Groups and Social Networking 275 Formal and Informal Groups 276 Functions of Formal Groups 276 Social Networking Is Blurring the Formal/Informal Boundaries 277 The Group Development Process 278 Real World Real People For Better or for Worse, Social Networking Is Breaking Down Walls 279 Five Stages 279 Group Development: Research and Practical Implications 281 Roles and Norms: Social Building Blocks for Group and Organizational Behavior 283 Roles 284 Real World Real People Take Charge of the Role Conflict in Your Busy Life 286 Norms 287 Relevant Research Insights and Managerial Implications 288 Group Structure and Composition 289 Functional Roles Performed by Group Members 289 Group Size 290 Effects of Men and Women Working Together in Groups 292 Threats to Group Effectiveness 295 The Asch Effect 296 Groupthink 297 Social Loafing 299 Real World Real People A Callfor Better Corporate Governance 300 Summary of Key Concepts 301 Key Terms 302 OB in Action Case Study Unmasking Manly Men 302 Ethical Dilemma My Boss Wants to "Friend" Me Online 303 Web Resources 303

7 Contents xxix Chapter Eleven Developing and Leading Effective Teams 304 Work Teams: Types, Effectiveness, and Stumbling Blocks 306 A General Typology of Work Teams 307 Effective Work Teams 310 Why Do Work Teams Fail? 313 Effective Teamwork through Cooperation, Trust, and Cohesiveness 314 Cooperation 315 Trust 316 Real World Real People Designing Buildings with Employee Collaboration in Mind 317 Cohesiveness 319 Teams in Action: Virtual Teams and Self-Managed Teams 321 Real World Real People Xerox's "Future of Work"Project Foresees a Flexible Global Workplace 322 Virtual Teams 323 Self-Managed Teams 325 Team Building and Team Leadership 327 Team Building 327 Real World Real People Team Building: Turning Managers into Business Maestros 328 Leading Teams 330 Summary of Key Concepts 330 Key Terms 331 OB in Action Case Study A Trans-Atlantic Team Learns the Ropes 331 Ethical Dilemma Thanks, But No Thanks! 332 Web Resources 333 Chapter Twelve Individual and Group Decision Making 334 Models of Decision Making 336 The Rational Model 337 Real World Real People McDonald's Used Multiple Methods to Identify a Problem 338 Nonrational Models of Decision Making 340 Integrating Rational and Nonrational Models 341 Decision-Making Biases 342 Real World Real People Decision-Making Biases Affect the Misdiagnosis ofmedical Conditions 343 Dynamics of Decision Making 345 Improving Decision Making through Effective Knowledge Management 345 General Decision-Making Styles 346 Real World Real People LydondellBasell Focuses on Retaining Employee Knowledge 347 The Role of Intuition in Decision Making 349 Road Map to Ethical Decision Making: A Decision Tree 352 Group Decision Making 354 Group Involvement in Decision Making 354 Advantages and Disadvantages of Group-Aided Decision Making 355 Group Problem-Solving Techniques 357 Real World Real People CKE Restaurants Combines Brainstorming, NGT, and Intuition to Make Decisions about New Products 360 Creativity 361 Definition and Individual Characteristics Associated with Creativity 361 The Steps or Stages of Creativity 363 Practical Recommendations for Increasing Creativity 364 Real World Real People Employees at the Blanchard Schaefer Agency Are Given the Time and Space to Be Creative 365 Summary of Key Concepts 365 Key Terms 366 OB in Action Case Study Ford's CEO Alan Mulally Adopts a New Approach to Decision Making 367 Ethical Dilemma Should Hospitals Be Allowed to Use Credit Scores in Determining What Type of Care Patients Receive? 368 Web Resources 369 Chapter Thirteen Managing Conflict and Negotiating 370 Conflict: A Modern Perspective 372 The Language of Conflict: Metaphors and Meaning 373 A Conflict Continuum 374 Functional versus Dysfunctional Conflict 375 Why People Avoid Conflict 375

8 XXX Contents Real World Real People Lots of Friendly Fighting at Google 376 Antecedents of Conflict 376 Desired Conflict Outcomes 377 Types of Conflict 377 Personality Conflict 377 Intergroup Conflict 380 Cross-Cultural Conflict 381 Managing Conflict 383 Stimulating Functional Conflict 383 Real World Real People How Tow Mows Down Bad Ideas 386 Alternative Styles for Handling Dysfunctional Conflict 386 Real World Real People Let's Go Play Some Golf 387 Third-Party Interventions 388 Practical Lessons from Conflict Research 390 Negotiation 391 Real World Real People You Won't Get a Better Price If You Don't Ask 392 Two Basic Types of Negotiation 392 Ethical Pitfalls in Negotiation 393 Practical Lessons from Negotiation Research 394 Conflict Management and Negotiation: A Contingency Approach 395 Summary of Key Concepts 395 Key Terms 396 OB in Action Case Study Selina Lo Sees the Light 397 Ethical Dilemma Break It Up! 398 Web Resources 398 Part Four Organizational Processes 399 Chapter Fourteen Communicating in the Digital Age 400 Basic Dimensions of the Communication Process 402 Perceptual Process Model of Communication 402 Barriers to Effective Communication 404 Interpersonal Communication 408 Assertiveness, Aggressiveness, and Nonassertiveness 408 Nonverbal Communication 409 Real World Real People Reading the Nonverbal Signs of a Possible Layoff 410 Active Listening 412 Women and Men Communicate Differently 414 Organizational Communication 416 Formal Communication Channels: Up, Down, Horizontal, and External 417 Informal Communication Channels 418 Real World Real People Surgical Team Communication Is a Life-or-Death Matter 419 Choosing Media: A Contingency Perspective 420 How Digital Communication Is Impacting Organizational Behavior 423 Real World Real People Global E-Mentoring at IBM 424 Strategic Concerns: Security and Privacy 424 Here Comes the Huge Internet Generation 425 The Two Faces of Telecommuting/Teleworking 427 Dealing with Unintended Consequences of the Digital Age 428 Summary of Key Concepts 431 Key Terms 432 OB in Action Case Study Go Ahead, Use Facebook 432 Ethical Dilemma We Know Where You Are 433 Web Resources 433 Chapter Fifteen Influence, Empowerment, and Politics 434 Real World Real People PepsiCo's CEOIndra Nooyi Is a Master of Influence 43 7 Organizational Influence Tactics 437 Nine Generic Influence Tactics 437 Three Possible Influence Outcomes 438 Practical Research Insights 439 Social Power 440 Dimensions of Power 441 Real World Real People Get Healthy. That's an Order! 443

9 Contents XXXI Research Insights about Social Power 443 Using Power Responsibly and Ethically 444 Empowerment: From Power Sharing to Power Distribution 445 A Matter of Degree 446 Participative Management 446 Real World Real People Power to the People at Cisco Systems 447 Delegation 448 Empowerment: The Research Record and Practical Advice 450 Organizational Politics and Impression Management 451 Definition and Domain of Organizational Politics 452 Political Tactics 454 Impression Management 455 Real World Real People "It's Hard to Look Smart with Bad Numbers" 458 Research Evidence on Organizational Politics and Impression Management 459 Managing Organizational Politics 460 Summary of Key Concepts 461 Key Terms 462 OB in Action Case Study Beyond Flextime: Trashing the Workweek 462 Ethical Dilemma You Say You Never Lie? That's Probably a Lie! 463 Web Resources 463 Chapter Sixteen Leadership 464 What Does Leadership Involve? 466 Leadership Defined 466 Approaches to Leadership 467 Leading versus Managing 469 Trait and Behavioral Theories of Leadership 470 Real World Real People AlliedBarton Security Services's Leadership Development Produces Positive Results 471 Trait Theory 471 Behavioral Styles Theory 475 Situational Theories 477 Fiedler's Contingency Model 477 Real World Real People Carol Bartz Uses Task- Motivated Leadership to Turn around Yahoo 479 Path-Goal Theory 480 Applying Situational Theories 483 The Full-Range Model of Leadership: From Laissez-Faire to Transformational Leadership 484 How Does Transformational Leadership Transform Followers? 486 Research and Managerial Implications 487 Real World Real People Steve Harrison Uses Business Decencies to Exhibit Individualized Consideration 488 Additional Perspectives on Leadership 489 The Leader-Member Exchange (LMX) Model of Leadership 489 Shared Leadership 491 Servant-Leadership 492 The Role of Followers in the Leadership Process 494 Real World Real People Jack and Suzy Welch Identify What Followers Can Expect from Leaders 495 Summary of Key Concepts 496 Key Terms 497 OB in Action Case Study Indra Nooyi Uses the Full Range of Leadership 498 Ethical Dilemma Should You Cover for a Laid-Off Friend? 499 Web Resources 499 Learning Module C: Additional Leadership Models (Web) Chapter Seventeen Organizational Design, Effectiveness, and Innovation 500 Organizations: Definition and Perspectives 502 What Is an Organization? 502 Organization Charts 503 Real World Real People Companies Have Different Views about the Optimum Span of Control 505 An Open-System Perspective of Organizations 505 Learning Organizations 506 Organization Design in a Changing World 507 Traditional Designs 507 Focus on Collaboration: Horizontal Design 509

10 XXXII Contents Designs That Open Boundaries between Organizations 510 The Contingency Approach to Designing Organizations 511 Real World Real People Toyota Changes Its Organizational Structure in Response to a Plunge in Sales 512 Mechanistic versus Organic Organizations 512 Getting the Right Fit 515 Organizational Effectiveness (and the Threat of Decline) 517 Generic Organizational-Effectiveness Criteria 517 Multiple Effectiveness Criteria: Some Practical Guidelines 520 The Ever-Present Threat of Organizational Decline 521 Organizational Innovation 523 Myths about Innovation 523 Real World Real People Zara Spends Decades to Innovate Its Supply Chain 524 A Model of Innovation 525 Summary of Key Concepts 528 Key Terms 529 OB in Action Case Study Irdeto Holdings BV Changes Its Organizational Structure 529 Ethical Dilemma Has Electronic Monitoring Gone Too Far? 530 Web Resources 531 Chapter Eighteen Managing Change and Stress 532 Forces of Change 534 External Forces 535 Real World Real People Companies Are Asking Shareholders for Input about Executive Compensation 537 Internal Forces 538 Models and Dynamics of Planned Change 538 Types of Change 539 Lewin's Change Model 540 A Systems Model of Change 541 Kotter's Eight Steps for Leading Organizational Change 544 Creating Change through Organization Development 545 Real World Real People MasterCard Implements Kotter's Model 546 Understanding and Managing Resistance to Change 548 Causes of Resistance to Change 549 Alternative Strategies for Overcoming Resistance to Change 552 Dynamics of Stress 554 Defining Stress 555 A Model of Occupational Stress 555 Moderators of Occupational Stress 558 Stress-Reduction Techniques 562 Real World Real People The Recession Results in Increased Demand for Employee Assistance Programs (EAPs) 563 Summary of Key Concepts 564 Key Terms 565 OB in Action Case Study Wyeth Implements Major Organizational Change 566 Ethical Dilemma Is There an Ethical Way to Implement Downsizing without Hurting Your Best Employees? 567 Web Resources 567 Learning Module D: Research Methods in OB (Web) Photo Credits Endnotes Glossary Index II ENO Gl PCO

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