What Great Managers Know and Do

MANAGING ORGANIZATIONAL BEHAVIOR What Great Managers Know and Do SECOND EDITION Timothy T. Baldwin Indiana University William H. Bommer California State University, Fresno Robert S. Rubin DePaul University Me Gravu Hill McGraw-Hill Irwin

CONTE, About the Authors vi Preface viii Walkthrough xix Acknowledgments xxvi PART ONE PERSONAL SKILLS CHAPTER 1 Organizational Behavior and Your Personal Effectiveness MANAGE WHAT? 4 Making the Business Case for People Management Skills 4 Using OB Evidence Instead of Just Intuition 4 Making a Personal Improvement 4 Describing Yourself and Your Style: Expanding Your Self-Awareness 4 INTRODUCTION 4 Success Through People Management,6 Playing for Keeps: Getting Serious About OB Right Now 10 Becoming a Great People-Manager 12 Learning About Organizational Behavior Is Hard 14 LEARNING AND PERSONAL IMPROVEMENT 19 Personal Effectiveness: The Foundation of Great Management 19 A Model of Self-Management 22 BUILDING SELF-AWARENESS 27 Self-Awareness: The Key to Successful Learning and Growth 27 Individual Differences and Their Importance 27 CONCLUDING NOTE 34 CHAPTER 2 Managing Stress and Time MANAGEWHAT? 42 - Getting-a Priority Done Under Stress 42 /Overcoming the Two Biggest Time Management //' Traps 42 / Minimizing Your Chances of Choking in a Pressure Situation 42 Making Changes in a Workplace to Lower Stress and Enhance (Not Lower) Productivity 42 INTRODUCTION 42 Personal and Organizational Consequences of Stress 44 Some Stress Is Good 44 Stress Is Personal: Individual Differences and Their Relationship to Stress 45 COMMON SOURCES AND CAUSES OF STRESS 48 Traumatic Events vs. Daily Hassles 48 Role Conflict and Ambiguity 49 Exhaustion of Resources and Burnout 50 Emotional Labor 51 High Demands and Low Control 52 STRESS MANAGEMENT STRATEGIES 53 The Importance of Matching Strategies with Causes 53 Prevention Strategies 54 Avoiding Choking 56 Coping Strategies 59 Outlets for Relief/Dealing with Stress in the Moment 61 TIME MANAGEMENT FUNDAMENTALS 62 First Be Effective, Then Be Efficient 62 Plan the Work, Then Work the Plan 66 Know Yourself and Your Time Use 67 Fight Procrastination 68 WORKPLACE CULTURES THAT FOSTER HIGH PERFORMANCE WITH LOWER STRESS 69 CONCLUDING NOTE 71 XXX

CONTENTS XXXI v CHAPTER 3 Solving Problems MANAGE/WHAT? 78 Defining and Structuring a Vague Problem 78 Avoiding Common Decision Errors 78 Excelling in^a Case Interview 79 Learning from Past Decisions 79 INTRODUCTION 79 ITHICHALLENGE OF PROBLEM SOLVING 79 WHY SMART PEOPLE MAKE BAD DECISIONS 80 Intuition 80 The Ladder of Inference 82 Six Ways People Exercise Poor Judgment Without Knowing It 84 Overcoming Judgment Biases 89 SOLVING PROBLEMS EFFECTIVELY 91 A PROBLEM-SOLVING FRAMEWORK: PADIL Define and Structure the Problem 92 Generate Creative Alternatives 102 Decide on a Solution 105 Implement 109 Learn and Seek Feedback.110 CONCLUDING NOTE 112 92 CHAPTER 4 Making Ethical Decisions MANAGE WHAT? 120 /Making a Difficult Ethical Choice 120 //You Be the! Ethicist 120 '/ Creating ja (Culture That People View as Fair / Being.aJ-tesponsible Whistle-Blower 120 ETHICS: MAKING THE TOUGH CHOICES 123 Recognizing Ethical Issues 123 120 SIX STEPS TO MAKING AN ETHICAL DECISION 128 Step 1: Gather the Facts 128 Step 2: Define the Ethical Issues 128 Step 3: Identify the Affected Parties, Consequences, and Obligations 132 Step 4: Consider Your Integrity 134 Step 5: Think Creatively About Actions 137 Step 6: Check Your Instincts 139 FAIRNESS IN THE WORKPLACE 139 Economics 139 Equality 140 Justice 140 MANAGING JUSTICE PERCEPTIONS 140 Distributive Justice 140 Procedural Justice 141 Interactional Justice 143 NAVIGATING COMMON MANAGERIAL ETHICAL SITUATIONS 146 Work Assignments and Opportunities 146 Performance Evaluation 147 Punishment and Discipline 147 Harassment 148 Family and Personal Issues 148 CONCLUDING NOTE 150

XXXII CONTENTS PART TWO INTERPERSONAL SKILLS CjHAPTER 5 Communication [ M NAjGE WHAT? 158 ' ~..y Selling an^ldea to Your Boss 158 The Elevator.Pitch: Making Your Case in a Very Short Time 158 Fixing a Typically Bad PowerPoint Presentation 158 Actively Listen to Understand a Problem 158 ^INTRODUCTION 158 CREATING PERSUASIVE AND STICKY MESSAGES 160 - Overcoming the Curse of Knowledge 160 Audience Analysis 162 The Fundamental Elements of Persuasion 162 Making Messages Sticky: The SUCCES Model 165 DELIVERING POWERFUL MESSAGES 169 The Basics of Effective Presentations 169 Presenting Plans That Bosses (and Others) Can Approve Of 176 Effective Use of PowerPoint and Visual Aids 177 CHOOSING YOUR COMMUNICATION MEDIUM 179 About E-Mail 182 ACTIVE LISTENING 183 The Paradox and. Importance of Active Listening 183 Traps and Barriers to Active Listening 184 Principles of Effective Listening 187 CONCLUDING NOTE 189 CHAPTER 6 Motivating Others / MANAGE WHAT? 196 / /,.'""'Taking-Over as Manager: Building a More Motivational ' >//' Workplace 196 / Dealing with,the Unmotivated Person 196,\ Motivating in an Economic Downturn 196 \\ Motivating,People in a Foreign Country 196 \ x venriching the Boring Job 196 INTRODUCTION 197 THE MULTIDIMENSIONAL NATURE OF PERFORMANCE 199 FRAMING MOTIVATION CHALLENGES AND IDEAS: THE EXPECTANCY THEORY 199 Why Capable People Are Not Motivated 201 THE PERSON AS A SOURCE OF MOTIVATION 203 An Equity Approach to Motivation 204 The Platinum Rule 206 McClelland's Learned Needs 207 THE JOB AS A SOURCE OF MOTIVATION The Job Characteristics Model 211 211 THE MANAGER AS A SOURCE OF MOTIVATION 217 Goal Setting 217 Reinforcement Theory and Behavior Modification 220 Examples of Behavior Modification in the Real World 221 The Effect of Reinforcers on Employee Performance Improvement 227 CONCLUDING NOTE 230 Putting It All Together to Increase Motivation 230

CONTENTS XXXIII CHAPTER 7 Managing Employee Performance MANAGE WHAT? 238 Critiquing an Existing Performance /'Evaluation Form 238 Evaluating Job Performance 238 Managing Both the Problem / /and the Star Employee 238 Conducting an Effective Performance Appraisal Ll Feedback Session 239 INTRODUCTION 239 JOB PERFORMANCE 240 JOB ATTITUDES 242 Job Satisfaction 242 Organizational Commitment 243 Organizational Cynicism 244 PERFORMANCE MANAGEMENT: THE DAY-TO-DAY WORK OF GREAT MANAGERS 244 SETTING EXPECTATIONS AND EVALUATING PERFORMANCE 246 Ensuring Goal Commitment 247 Observing and Assessing Performance 247 Defining Job Performance Criteria: Behavior and Results 248 Assessing Behavior, Not Traits 249 Using Multiple Methods to Assess Behavior and Results 249 Absolute Assessment Techniques 250 Relative Assessment Techniques 250 Using Multiple Sources of Data or People 251 PROVIDING EFFECTIVE FEEDBACK 253 The Principles of Good Feedback 253 Managing Perceptions of Fairness in Performance Management 255 DEALING WITH THE PROBLEM EMPLOYEE 256 Diagnose the Problem 257 Hold a Performance Improvement Discussion 257 Train Employees When Appropriate 259 Making a Reassignment or Termination Decision 260 RECOGNITION AND REINFORCEMENT: MANAGING THE STAR 260 Understanding Star Performers 262 Engaging the Star Performer 262 COACHING FOR EMPLOYEE GROWTH 263 Coaching vs. Mentoring 264 CONCLUDING NOTE 265 CHAPTER 8 Using Power and Influence MANAGEWHAT? 274 'Influencing Without Formal Authority 274 "" Selling an -Idea to Your Boss 274 Making a Positive First Impression 274 Building a Personal Network That Enhances Your Power 274 INTRODUCTION 274 Authority and Influence 275 Dependence and Networks 275 THE SOURCES OF POWER AND INFLUENCE 278 Bases of Power 278 Norms and Conformity 280 INFLUENCING WITHOUT AUTHORITY 282 Frequency and Effectiveness of Different Influence Tactics 282 Social Influence Weapons 285 MANAGING YOUR BOSS 291 General Strategies for Managing Your Boss 292 Managing Your Boss Through Effective Communication 292 PROFESSIONALISM: A SOURCE OF TRUST AND RESPECT 293 Building Positive Relationships 294 Power Etiquette and First Impressions 296 CONCLUDING NOTE 303

XXXIV CONTENTS CHAPTER 9 Leading Others \ MANAGE WHAT? 310 N * Making the Transition to a Leadership Position 310 Leading People to Performance Beyond Expectations 310 Leading People Older than Yourself 310 Developing Yourself as a Leader 310 INTRODUCTION 310 Leadership Matters 311 The Full Range of Leadership 313 PERSONAL CHARACTERISTICS OF LEADERS 315 Important Personal Traits in Leadership 315 Characteristics That People Admire 316 TRANSACTIONAL LEADERSHIP 317 Leading Through Transactions 317 Leader-Member Exchange 318 Transactional Leader Behaviors 318 TRANSFORMATIONAL LEADERSHIP: GETTING PERFORMANCE BEYOND EXPECTATIONS 322 Articulating a Vision 323 Providing an Appropriate Model 324 Fostering the Acceptance of Group Goals 325 Communicating High-Performance Expectations Providing Individualized Support 327 Providing Intellectual Stimulation 328 Putting the Full Range of Leadership into Action BECOMING A LEADER 330 Key Actions That Impact Leadership Development Success 331 CONCLUDING NOTE 334 Dare to Lead 334 326 329 PART THREE GROUP AND ORGANIZATIONAL SKILLS CHAFTER 10 Team Effectiveness ', MANAGE WHAT? 342 1 Helping the Highly Cohesive but ',, ' Low-Performing Team 342 I Getting a Team Started: Leading \ \the First Meeting, 342 i i Dealing with a Problem Team Member 342 ; ; Forming and Leading a Virtual Team 342 INTRODUCTION 342 WHEN DO TEAMS MAKE SENSE? 343 DIFFERENT TEAMS DIFFERENT CHALLENGES 344 HIGH-PERFORMING TEAMS 345 The High-Performance Team Scorecard 346 The Five Disciplines of High-Performing Teams 346 MANAGING THREATS TO TEAM PERFORMANCE AND DECISION MAKING 355 Information Processing Biases 356 Social Loafing and Self-Limiting Behaviors 357 Social Conformity 358 EFFECTIVE TEAM INTERVENTIONS 360 Holding Effective Meetings 360 Understanding Member Profiles 361 Building Team Cohesion 362 Conducting After-Action Reviews and Process Checks 364 Dealing with a Free-Rider 364 CREATIVITY IN TEAMS 365 A Climate of Trust and Risk Taking 365 Creative Problem-Solving Techniques 366 VIRTUAL TEAMS AND MEETINGS 368 Electronic Meetings 370 CONCLUDING NOTE 372

CONTENTS xxxv CHAPTER 11 Resolving Conflict Through Negotiation and Mediation ; MANAGE WHAT? 378 : Resolving a Team Dispute 378 : Negotiating an Agreement Between Conflicting Parties 378 ' Starting from a Position of Strength 378 Getting Beyond Failed Negotiations 378 INTRODUCTION 378 TYPES OF CONFLICT AND THEIR EFFECTS 380 MANAGING CONFLICT 382 Diagnosing Conflict Sources 382 Matching Conflict Styles with Situations 385 Seeking Superordinate Goals 391 EFFECTIVE NEGOTIATIONS 391 To Negotiate or Not? Recognizing Negotiation Situations 391 The Negotiation Scorecard: Outcomes of an Ideal Negotiation 393 Win-Win Negotiation 393 STAGES OF EFFECTIVE NEGOTIATIONS 394 Negotiation Preparation 394 Understanding the Needs of Other Parties 397 List and Discuss Possible Options 397 Employing Process Tactics During Negotiations 399 The End of the Negotiation 404 Evaluate How Well It Went 405 MEDIATION 406 When Is Mediation Used? 407 Trust Building: The Foundation of the Mediation 408 The Mediation Process 408 CONCLUDING NOTE 412 CHAPTER 12 Recruiting, Selecting, and Retaining Talent MANAGE WHAT? 418 Expanding Your Pool of Candidates: Using Effective Recruiting'Tactics 418 Choosing the Best Person for a Role 418 Conducting a More Effective Selection ' Interview 418 Retaining a Talented Employee 419 INTRODUCTION 419 SELECTING PEOPLE FOR ROLES 419 Choosing the Right People for the Right Jobs Cla rify the Job Context 421 Establish a Process 424 Recruit Talented Applicants 425 Decide on Methods and Assess 429 RETAINING YOUR BEST TALENT 440 CONCLUDING NOTE 442 419

XXXVI CONTENTS CHAPTER 13 Culture and Diversity!! MANAGE WHAT? 448 j i Will I Fit jrrhere? Decoding an Organization's! i Culture 448\ i Avoiding Culture Shock 448! j Making a CulturallyjDiverse Team Productive 448 - Building Your Own,High-Performance! i./'-subculture,,''448 INTRODUCTION 449 UNDERSTANDING CULTURE AND ITS IMPORTANCE IN ORGANIZATIONS 450 Making a Cultural Choice: The Competing Values Model 452 An Alternative View of Culture 454 Is One Type of Culture the Best? 455 ORGANIZATIONAL STRUCTURE: A KEY CULTURAL INGREDIENT 455 Structure Influences Behavior 456 PEOPLE MAKE THE PLACE:. PERSON-ORGANIZATION FIT 458 The ASA Framework 458 Cultural Adaptation: Socialization and Onboarding Employees 460 NATIONAL CULTURAL DIFFERENCES 461 Managing People from Different Cultures 461 INCLUSIVE CULTURES 466 Characteristics of Inclusive Cultures 466 The Payoffs from Inclusive Cultures 469 WORKING PRODUCTIVELY WITH DIVERSE PEOPLE AND TEAMS 470 Building Awareness 471 Understanding Differences 473 Taking Action 476 BUILDING "PEOPLE-FIRST" HIGH-PERFORMANCE CULTURES 477 How Cultures and Subcultures Are Created: You Can Make a Difference 478 The Characteristics of High-Performance Cultures 478 Corporate Examples of High-Performance Cultures 484 CULTURAL AUDITS 485 Common Areas to Assess in Cultural Audits Following Up a Cultural Audit 487 CONCLUDING NOTE 489 486 CHAPTER 14 Making Change 1 MANAGE VVHAT? 496!! Converting an Organizational Problem j into an Achievable Change Initiative 496 j j Creating Urgency for a Change 496 ; J Dealing.with Change Resisters 496! i Evaluating a Change initiative 496 I INTRODUCTION; 497 THE CHALLENGE OF CHANGE 497 GENERAL MODELS OF THE CHANGE PROCESS 499 Lewin's Unfreeze-Change-Refreeze Model 499 Punctuated Equilibrium 501 Bridges'Model of Transitions 501 Kotter's Eight Stages of Change 503 McKinsey 7S Framework 506 A PRACTICAL MODEL OF PLANNED CHANGE 508 Structuring the Problem 508 Contracting with Those Involved in the Change 509 Externalizing the Threat/Enemy 512 Defining Goals in Terms of Results Instead of Activities 512 COLLECTING DATA AND PROVIDING FEEDBACK 513 Different Methods of Collection 513 Providing Feedback 515 Diagnosing Change Readiness 517 Looking for Small Wins to Generate Momentum 517 IMPLEMENTING INTERVENTIONS 517 Types of Interventions 518 Framing, Reframing, and Selecting Interventions 521 Communicating What You Are Doing 522 OVERCOMING RESISTANCE TO CHANGE 523 Accelerating Change, Reducing Opposition 523 Strategies for Overcoming Resistance 524 Managing Organizational Cynicism 525 EVALUATING AND SUSTAINING CHANGE EFFORTS 527 CONCLUDING NOTE 529 Stay Focused on the Basics 529 Endnotes 534 Glossary 554 Index 564