THIRTEENTH EDITION. Fred Luthans George Hohnes l)istiiigui\hetl Professor of Management, l 'niversity of \ebraska

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1 Organizational Behavior W/7 THIRTEENTH EDITION Fred Luthans George Hohnes l)istiiigui\hetl Professor of Management, l 'niversity of \ebraska Brett C. Luthans Professor, Craig Schoo! of Business, Missouri H estern State U niversity Kyle W. Luthans John Becker Endowed Professor of Business, Cltair, Management Department, University ofxebraska at Kearney Information Age Publishing, Inc. Charlotte, North Carolina

2 CONTENTS About the Authors Preface v xvii PART 1 ENVIRONMENTAL AND ORGANIZATIONAL CONTEXT 1 Chapter 1 Introduction to Organizational Behavior: An Evidence-Based Approach 2 Learning Objectives 2 The Challenges Pacing Management 3 OB in Action: Some Things Never Really Change 4 Undergoing a Paradigm Shift 5 A New Perspective for Management 6 Evidence-Based Management 7 Historical Background: The Hawthorne Studies 9 The Illumination Studies: A Serendipitous Discovery 9 Subsequent Phases of the Hawthorne Studies 10 Implications of the Hawthorne Studies 11 Research Methodology to Determine Valid Evidence 11 The Overall Scientific Perspective 12 Starting With Theory 13 The Use of Research Designs 14 The Validity of Studies 14 Defining Organizational Behavior 15 Theoretical Foundation for Organizational Behavior 15 Cognitive Framework 16 Behavioristic Framework 17 Social Cognitive Framework 18 The Conceptual Framework for the Text 19 Summary 20 Questions for Discussion and Review 21 Organizational Behavior Gase: How Is This Stuff Going to Help Me? 22 Organizational Behavior Gase: Too Nice to People 22 Organizational Behavior Gase: Conceptual Model Dream or Reality? 23 Chapter 2 Environmental Context: Globalization, Diversity, and Ethics 24 Learning Objectives 24 Globalization 24 Diversity in the Workplace 26 Reasons for the Emergence of Diversity 27 Developing the Multicultural Organization 29 Individual Approaches to Managing Diversity 31 Organizational Approaches to Managing Diversity 33 Ethics and Ethical Behavior in Organization 38 The Impact of Ethics on "Bottom-Line" Outcomes 40 Summary 41 Questions for Discussion and Review 41 Organizational Behavior Gase: How Far-Reaching Are Globalization and Technology 42 Organizational Behavior Gase: I Want Out 42 Organizational Behavior Gase: Changing With the Times 43 ix

3 x CONTENTS Chapter 3 Organizational Context: Design and Culture 44 Learning Objectives 44 The Organizational Theory Foundation 44 Historical Roots 45 Modern Theoretical Foundation 45 What Is Meant by a Learning Organization? 46 Organizational Behavior in the Learning Organization 47 Learning Organization in Action 48 Modern Organization Designs 49 Horizontal Organizations 50 Contemporaiy Designs: Hollow and Modular 51 Network Designs 52 The Virtual Organization 54 The Organizational Culture Context 55 Definition and Characteristics 56 Uniformity of Culture 58 Creating and Maintaining a Culture 60 How Organizational Cultures Start 60 Maintaining Cultures Through Steps of Socialization 62 Changing Organizational Culture 65 Summary 68 Questions for Discussion and Review 69 Organizational Behavior Case: The Outdated Structure 70 Organizational Behavior Case: Keeping Things the Same 70 Organizational Behavior Case: Out With the Old, In With the New 71 Chapter 4 Organizational Context: Reward Systems 72 Learning Objectives 72 Pay: The Dominant Organizational Reward 73 The Theoretical Background on Money as a Reward 73 Research on the Effectiveness of Pay 75 Traditional Methods of Administering Pay 77 Base Pay Approach 77 Pay for Performance 78 New Pay Techniques 83 Recognition as an Organizational Reward 84 Recognition Versus Money 84 Examples ofeffective Formal Recognition Systems 86 OB in Action: Some Easy Ways to Recognize Employees 89 Benefits as Organizational Rewards 90 Traditionally Offered Benefits 90 NewerTypes of Benefits 92 Summary 95 Questions for Discussion and Review 96 Real Case: Rewarding Teamwork in the Plains 96 Real Case: Different Strokes for Different Folks 97 Organizational Behavior Case: Huge Benefits, Little Understanding or Use 98 Experiential Exercises for Part One 99

4 CONTENTS xi PART 2 COGNITIVE PROCESS OF ORGANIZATIONAL BEHAVIOR 101 Chapter 5 Personality, Perception, and Employee Attitudes 102 Learning Objectives 102 The Meaning of Personality 102 The Role of Heredity and the Brain 103 Self-Esteem 105 Person-Situation Interaction 106 The Socialization Process 107 The "Big Five" Personality Traits 108 Myers-Briggs Type lndicator (MBTI) 110 The Perception Process 112 Sensation Versus Perception 112 Subprocesses of Perception 113 Social Perception 114 Characteristics of Perceiver and Perceived 115 Stereotyping 116 The Halo Effect 116 Work-Related Attitudes: PA/NA 117 Employee Attitudes 118 What Is Meant by Job Satisfaction? 118 Influences on Job Satisfaction 119 Outcomes of Job Satisfaction 121 Organizational Commitment 124 The Meaning of Organizational Commitment 124 The Outcomes of Organizational Commitment 126 Guidelines to Enhance Organizational Commitment 126 Organizational Citizenship Behaviors (OCBs) 126 Summary 127 Questions for Discussion and Review 129 Organizational Behavior Case: Ken Leaves the Company 130 Chapter 6 Motivational Needs, Processes, and Applications 131 Learning Objectives 131 The Basic Motivation Process 131 Primary Motives 132 Secondary Motives 133 Intrinsic Versus Extrinsic Motives 134 Work-Motivation Theories 135 Maslow's Hierarchy of Needs: An Important Historical Contribution 136 Herzberg's Two-Factor Theory of Motivation 139 The Porter-Lawler Expectancy Theoiy of Work Motivation 141 Equity Theory of Work Motivation 144 The Relationship Between Equity Theory and Organizational Justice 146 Attribution Theory 147 Other Work Motivation Theories: Control and Agency 151 Motivational Application Through Job Design 152 Job Rotation 153 Job Enlargement 153 Job Enrichment 154

5 xii CONTENTS The Job Characteristics Approach to Task Design 154 Practical Guidelines for Redesigning Jobs 156 Motivational Application Through Goal Setting 158 Theoretical Understanding of Goal Setting 158 Research Evidence on the Impact of Goal Setting 159 OB in Action: Using Stretch Goals 160 Other Performance Management Application Techniques Associated With Goal Setting Impact on the Psychological Contract 164 Summary 164 Questions for Discussion and Review 166 Real Case: Making It a Nice Place to Work 167 Organizational Behavior Case: What Do They Want? 168 Organizational Behavior Case: Tom, Dick, and Harry 168 Organizational Behavior Case: The Rubber Chicken Award 169 Organizational Behavior Case: Specific Goals for Human Service 170 Chapter 7 Positive Organizational Behavior and Psychological Capital 171 Learning Objectives 171 Positive Psychology 172 Self-Efficacy/Confidence 174 The Theoretical Background and Meaning ofefficacy 174 Specific Versus General Self-Efficacy 175 The Process and Impact of Self-Efficacy 177 Sources of Efficacy 178 Implications for Efficacy in the Workplace and POB 180 Optimism 184 The Dimensions of Optimism 185 Optimism in the Workplace 187 OB in Action: "Half-Empty" or "Half-Full" 188 Hope 189 Resiliency 191 Psychological Capital (PsyCap) 192 Background and Research on PsyCap 193 PsyCap Development 194 Other Positive Constructs 195 Happiness or Subjective Well-Being (SWB) 196 The Background on SWB 197 Emotional Intelligence (EI) 199 The Role of Intelligence 202 Emotional Intelligence 205 Summary 207 Questions for Discussion and Review 210 Real Case: High Tech High Fear 211 Organizational Behavior Case: People Problems at HEI 212 Experiential Exercises for Part Two 213 PART 3 DYNAMICS OF ORGANIZATIONAL BEHAVIOR 219 Chapter 8 Communication and Decision Making 220 Learning Objectives 220

6 CONTENTS xiii Background of the Role of Communication 221 The Definition of Communication 221 Nonverbal Communication 222 Body Language and Paralanguage 222 Improving Nonverbal Effectiveness 223 OB in Action: Nonverbal and Verbal Communication 224 Interpersonal Communication 225 Importance of How to Talk to Others 225 The Importance of Feedback 226 Other Important Variables in Interpersonal Communication 228 Interactive Communication in Organization 228 The Extent and Implications of Interactive Communication 229 The Purposes and Methods of Interactive Communication 229 The Decision-Making Process 231 Behavioral Decision Making 232 Decision Rationality 233 Decision-Making Styles 234 Participative Decision-Making Techniques 236 Creativity and Group Decision Making 237 The Process of Creativity 237 Psychological Definition and Analysis of Creativity 238 Creativity Techniques for Management Decision Making 239 OB in Action: Creative Decision Making to Eliminate Downsizing 240 Group Decision Making 241 Summary 243 Questions for Discussion and Review 243 Organizational Behavior Case: Döing My Own Thing 244 Organizational Behavior Case: Bad Brakes 244 Organizational Behavior Case: Harry Smart Or Is He? 245 Chapter 9 Stress and Conflict 246 Learning Objectives 146 The Emergence of Stress 246 Contemporary Environment Demands 246 What Stress Is, and Is Not 247 What About Burnout? 249 The Causes of Stress 249 Extraorganizational Stressors 250 Organizational Stressors 251 Group Stressors 252 Individual Stressors: The Role of Disposition 254 Intraindividual Conflict 258 Conflict Due to Frustration 258 Goal Conflict 260 Role Conflict and Ambiguity 261 Interactive Conflict 262 Interpersonal Conflict 262 Intergroup Behavior and Conflict 263 The Effects of Stress and Intraindividual Conflict 264 Physical Problems Due to Stress and Conflict 265

7 xiv CONTENTS Psychological Problems Due to Stress and Conflict 266 Behavioral Problems Due to Stress and Conflict 266 Coping Strategies for Stress and Conflict 267 OB in Action: Taking Time to Manage Time 267 Individual Coping Strategies 268 Organizational Coping Strategies 270 Negotiation Skills: Going Beyond Conflict Management 272 Traditional Negotiation Approaches 272 Contemporary Negotiation Skills 273 Summary 275 Questions for Discussion and Review 276 Real Case: Round-the-Clock-Stress 277 Organizational Behavior Case: Sorry, No Seats Are Left; Have a Nice Flight 278 Organizational Behavior Case: A Gnawing Stomach Ache 278 Chapter 10 Power and Politics 280 Learning Objectives 280 The Meaning of Power 281 The Distinctions Among Power, Authority, and Influence 281 The Classification of Power 282 Contingency Approaches to Power 287 OB in Action: Taking as Long as It Takes 289 The Special Case of Empowerment 291 The Complexity of Empowerment 291 Innovation Implications 292 Putting Empowerment Into Action 293 Political Implications of Power 294 OB in Action: Empowerment and Trust 295 A Political Perspective of Power in Organizations 296 Specific Political Strategies for Power Acquisition 297 A Final Word on Power and Politics 302 Summary 303 Questions for Discussion and Review 304 Real Case: Fighting Back 304 Organizational Behavior Case: Throwing Away a Golden Opportunity 305 Chapter 11 Croups and Teams 307 Learning Objectives 307 The Nature of Groups 307 The Meaning of a Group and Group Dynamics 308 The Dynamics of Group Formation 308 Types of Groups 311 Implications From Research on Group and Team Dynamics 313 Group/Team Effect!veness 315 The Dynamics of Informal Groups 316 Norms and Roles in Informal Groups 316 The Informal Organization 317 The Dysfunctions of Groups and Teams 317 Norm Violation and Role Ambiguity/Conflict 317 The Groupthink, Conformity Problem 318

8 CONTENTS xv Risky Shifit Phenomenon 319 Dysfunctions in Perspective 319 Social Loafing 320 Work Teams 321 The Nature of a Team 321 OB in Action: Greater Productivity Through Cross-Functional Teams 322 Cross-Functional Teams 323 Virtual Teams 323 Self-Managed Teams 324 How to Make Teams More Effective 325 Summary 329 Questions for Discussion and Review 329 Real Case: There Are Teams, and There Are Teams 330 Organizational Behavior Case: The Schoolboy Rookie 331 Organizational Behavior Case: The Blue-Ribbon Committee 332 Experiential Exercises for Part Three 333 PART 4 MANAGING AND LEADING FOR HIGH PERFORMANCE 341 Chapter 12 Behavioral Performance Management 342 Learning Objectives 342 Learning Theory Background 343 Behavioristic Theories 343 Cognitive Theories 345 Social Learning and Social Cognitive Theory 346 Principles of Learning: Reinforcement and Punishment 348 Laws of Behavior 348 Critique of Reinforcement Theory 349 Reinforcement as Used in Behavioral Management 350 Positive and Negative Reinforcers 351 The Use of Punishment 351 The Role of Organizational Reward Systems 353 Analysis of Money as a Reinforcer 354 Nonfinancial Rewards 355 Behavioral Performance Management, or O.B. MOD 359 Step 1: Identification of Performance Behaviors 359 Step 2: Measurement of the Behavior 363 Step 3: Functional Analysis of the Behavior 364 Step 4: Development of an Intervention Strategy 365 OB in Action: Functional Analysis in Action 366 Step 5: Evaluation to Ensure Performance Improvement 368 Application of Behavioral Management 368 Manufacturing Versus Service Applications 370 Summary 371 Questions for Discussion and Review 371 Organizational Behavior Case: Contrasting Styles 372 Organizational Behavior Case: Volunteers Can't Be Punished 373 Organizational Behavior Case: Up the Piece Rate 373 Organizational Behavior Case: A Tardiness Problem 374

9 xvi CONTENTS Chapter 13 Effective Leadership Processes 375 Learning Objectives 375 What Is Leadership? 375 The Historically Important Studies on Leadership 377 The Iowa Leadership Studies 378 The Ohio State Leadership Studies 378 The Early Michigan Leadership Studies 379 Traditional Theories of Leadership 380 Trait Theories of Leadership 381 From Traits to States and Skills Development 381 Group and Exchange Theories of Leadership 382 The Leader-Member Exchange (LMX) Model 384 Contingency Theory of Leadership 385 Path-Goal Leadership Theory 387 Modern Theoretical Processes of Leadership 390 Charismatic Leadership Theories 390 Transformational Leadership Theory 391 Substitutes for Leadership 394 Authentic Leadership 395 Leadership Across Cultures 396 Project GLOBE and the Future of International Leadership Studies 398 OB in Action: How Business Leaders Communicate Across Cultures 399 Summary 401 Questions for Discussion and Review 402 Chapter 14 Great Leaders: An Evidence-Based Approach 403 Learning Objectives 403 Leadership in the New Environment 404 Leadership Styles 405 Style Implications of the Classic Studies and the Modern Theories 406 Classic Styles 409 Leadership Styles in Perspective 410 An Evidence-Based Positive, Authentic Leadership Style 411 The Roles and Activities of Leadership 413 Leader/Manager Roles 413 Activities of Successful and Effective Leaders: The Real Managers Study 415 Leadership Skills 421 What Skills Do Leaders Need? 422 Traditional Leadership Development Programs 424 Contemporary Leadership Development Approaches 426 Other Indirect Techniques for Developing Leadership Effectiveness 427 Summary 429 Questions for Discussion and Review 430 Organizational Behavior Case: The Puppet 431 Experiential Exercises for Part Four 432 Footnote Reference s and Supplemental Readings 439 References for Application Boxes and Real Cases 514

Organizationa Behavior and Management

Organizationa Behavior and Management Ninth Edition John M. Ivancevich Hugli Roy and Lillie Cram Cullen Chair and Professor of Organizational Behavior and Management, C. T. Bauer College of Business, University