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Organizational Behavior
PRINT OrganizationalBehaviorSeventh EditionJohn R. Schermerhorn, Jr.Ohio UniversityJames G. HuntTexas Tech UniversityRichard N. OsbornWayne State University ORGANIZATIONAL BEHAVIOR 7TH editionCopyright 2002 © John Wiley & Sons, Inc. All rights reserved. Printed in the United States ofAmerica. Except as permitted under the United States Copyright Act of 1976, no part of thispublication may be reproduced or distributed in any form or by any means, or stored in a data baseretrieval system, without prior written permission of the publisher.ISBN 0-471-22819-2 (ebook)0-471-42063-8 (print version) SECTION ONE 1 Organizational Behavior Today 3Learning About Organizational Behavior 5Organizations as Work Settings 7Organizational Behavior and Management 9Ethics and Organizational Behavior 12Workforce Diversity 15Demographic Differences 17Aptitude and Ability 18Personality 19Personality Traits and Classifications 21Values and Attitudes 27Managing Diversity and Individual Differences31The Perceptual Process 32Common Perceptual Distortions 37Managing the Perceptual Process 40Attribution Theory 41The Concept of Organizational Culture 43Observable Aspects of Organizational Culture48Values and Organizational Culture 49Managing Organizational Culture 52Organizational Development Process andApplications 54Change in Organizations 59Planned Change Strategies 62Resistance to Change 64Footnotes 67Source Notes 71SECTION TWO 73High Performance Context of OrganizationalBehavior 75What is a High Performance Organization? 78Management Challenges of High PerformanceOrganizations 81Illustrative Case: Creating a High PerformanceOrganization 84Groups in Organizations 87Stages of Group Development 90Input Foundations of Group Effectiveness 92Group and Intergroup Dynamics 95Decision Making in Groups 96High Performance Teams 100Team Building 103Improving Team Processes 105Teams and the High Performance Workplace110Decision Making Process 114Decision Making Models 115Intuition, Judgment, and Creativity 118Managing the Decision-Making Process 120Technology, Culture, and Ethics in DecisionMaking 124Conflict 127Managing Conflict 130Negotiation 135Negotiation Strategies 137Footnotes 140Source Notes 144SECTION THREE 145What Is Motivation? 147Reinforcement 148Content Theories of Motivation 155Process Theories 159Integrating the Motivation Theories 162Dynamics of Stress 165Footnotes 168Source Notes 169SECTION FOUR 171Power 173Empowerment 181Organizational Politics 183Political Action and the Manager 186The Nature of Communication 190Essentials of Interpersonal Communication192Communication Barriers 195Organizational Communication 197Communication and the High PerformanceWorkplace 200Footnotes 203Source Notes 204SECTION FIVE 205Organizational Behavior and Globalization207Cultures and Cultural Diversity 209Globalization and People at Work 214A Global View of Organizational Learning219Technology and Job Design 220Goal Setting and Job Design 222Alternative Work Arrangements 225Organizational Design and Size 228Operations Technology and OrganizationalDesign 229Information Technology and OrganizationalDesign 231Environment and Organizational Design234Strategy and Organizational Design 237Footnotes 238Source Notes 241Brief Contents THE OB SKILLS WORKBOOK 243The Collection 245ARTICLE 1The Company of theFuture Robert B. Reich 245ARTICLE 2Life In The Fast Lane Chuck Salter 252ARTICLE 3Danger: Toxic CompanyAlan M. Webber 255ARTICLE 4Learning for a ChangeAlan M. Webber 258Cases for Critical Thinking 265CASE 1Drexler’s Bar-B-QueForest F. Aven, Jr., V. Jean Ramsey265CASE 2Sun Microsystems: "We’re the dot in .com"David S. Chappell 267CASE 3Crossing BordersBernardo M. Ferdman, Plácida I. Gallegos and the KaleelJamison Consulting Group, Inc. 270CASE 4Never on a SundayAnne C. Cowden 272CASE 5MAGREC, Inc. Mary McGarry,Barry R. Armandi 273CASE 6It Isn’t Fair Barry R. Armandi275CASE 7Amoco’s Global HumanResource SystemsEllen Ernst Kossek 277CASE 8I’m Not in Kansas AnymoreAnne C. Cowden 279CASE 9The Forgotten GroupMember Franklin Ramsoomair280CASE 10NASCAR’s Racing TeamsDavid S. Chappell 281CASE 11First Community FinancialMark Osborn 284CASE 12Mission Management andTrust Mark Osborn 285CASE 13Motorola: Is a HighPerformance Culture Enough?David S. Chappell 287CASE 14Perot Systems: Can a HighPerformance Company Have aHuman Side? 289CASE 15Power or Empowerment atGM? Aneil Mishra, Karen Mishra,and Kim Cameron 293CASE 16The Poorly Informed WalrusBarbara McCain 296CASE 17Johnson and Johnson:Futuristic Decision MakingDavid S. Chappell 297CASE 18American Airlines David S.Chappell 299CASE 19The New Vice President303Experiential Exercises 306My Best Manager 306Graffiti Needs 307My Best Job 307What Do You Value in Work?307My Asset Base 308Expatriate Assignments 309Cultural Cues 311Prejudice in Our Lives 312How We View Differences 313Alligator River Story 313Teamwork & Motivation 314The Downside of Punishment315Annual Pay Raises 316Tinker Toys 317Job Design Preferences 318My Fantasy Job 319Eggsperiential Exercises 319Scavenger Hunt – Team Building320Work Team Dynamics 321Identifying Group Norms 321Workgroup Culture 322The Hot Seat 323Organizations Alive! 324Fast Food Technology 325Alien Invasion 326Interview a Leader 327Leadership Skills Inventories328Leadership and Participation inDecision Making 329My Best Manager: Revisited 330Active Listening 331Upward Appraisal 331"360" Feedback 332Role Analysis Negotiation 332Lost at Sea 333Entering the Unknown 334Vacation Puzzle 335The Ugli Orange 336Force-Field Analysis 336Self-Assessment Inventories 338Managerial Assumptions 338A 21st-Century Manager 339Turbulence Tolerance Test 340Global Readiness Index 341Personal Values 342Intolerance for Ambiguity 343Two-Factor Profile 345Are You Cosmopolitan? 345Group Effectiveness 346Organizational Design Preference347Which Culture Fits You? 347Least Preferred Coworker Scale348Leadership Style 349"TT" Leadership Style 350Empowering Others 351Machiavellianism 352Personal Power Profile 353Your Intuitive Ability 354Decision-Making Biases 355Conflict Management Styles 356Your Personality Type 357Time Management Profile 358iv■Brief Contents SECTION ONE 1 Organizational Behavior Today 3What Is Organizational Behavior? 3Shifting Paradigms of Organizational Behavior 3Organizational Behavior and Diversity 4Learning About Organizational Behavior 5Organizational Behavior and the Learning Imperative 5Scientific Foundations of Organizational Behavior 5Interdisciplinary Body of Knowledge 5Use of Scientific Methods 6Focus on Application 6Contingency Thinking 6Organizations as Work Settings 7Purpose, Mission, and Strategies 7People and Work Systems 8Organizational Behavior and Management 9The Nature of Managerial Work 9The Management Process 9Managerial Roles and Networks 10Managerial Skills and Competencies 11Technical Skills 11Human Skills 12Conceptual Skills 12Ethics and Organizational Behavior 12Ways of Thinking About Ethical Behavior 12Ethical Dilemmas in the Workplace 13Organizational Social Responsibility 14Work and the Quality of Life 14Workforce Diversity 15Equal Employment Opportunity 16Managing Diversity 16Demographic Differences 17Gender 17Age 17Able-Bodiedness 18Racial and Ethnic Groups 18Aptitude and Ability 18Personality 19Personality Determinants and Development 19Personality Traits and Classifications 21Social Traits 22Personal Conception Traits 22Locus of Control 22Authoritarianism/Dogmatism 23Machiavellianism 24Self-Monitoring 25Emotional Adjustment Traits 25Type A and Type B Orientation 25Personality and Self-Concept 26Values and Attitudes 27Values 27Sources and Types of Values 27Patterns and Trends in Values 29Attitudes 29Attitudes and Behavior 30Attitudes and Cognitive Consistency 31Managing Diversity and Individual Differences 31The Perceptual Process 32Factors Influencing the Perceptual Process 33The Perceiver 33The Setting 33The Perceived 34Stages of the Perceptual Process 34Attention and Selection 35Organization 35Interpretation 36Retrieval 36Response to the Perceptual Process 36Common Perceptual Distortions 37Stereotypes or Prototypes 37Halo Effects 38Selective Perception 38Projection 38Contrast Effects 39Self-Fulfilling Prophecy 39Managing the Perceptual Process 40Impression Management 40Distortion Management 40Attribution Theory 41Attribution Errors 42Contents vi■ContentsAttributions Across Cultures 42The Concept of Organizational Culture 43Functions and Components of Organizational Culture 43External Adaptation 43Internal Integration 44Dominant Culture, Subcultures, and Countercultures 45Importing Subcultures 46Valuing Cultural Diversity 46Levels of Cultural Analysis 47Observable Aspects of Organizational Culture 48Stories, Rites, Rituals, and Symbols 48Cultural Rules and Roles 49The Evolution of Shared Meanings from Observable Culture 49Values and Organizational Culture 49Management Philosophy 50Organizational Myths 50National Culture Influences 51Managing Organizational Culture 52Building, Reinforcing, and Changing Culture 52Continuous Cultural Development 53Organizational Development Process and Applications 54Underlying Assumptions of OD 54Shared Values and Principles Underlying OD 55Action Research Foundations of OD 55Organizational Development Interventions 56Organizationwide Interventions 56Group and Intergroup Interventions 58Individual Interventions 58OD and the Continuous Cultural Evolution 59Change in Organizations 59Planned and Unplanned Change 60Organizational Forces and Targets for Change 60Phases of Planned Change 61Unfreezing 61Changing 62Refreezing 62Planned Change Strategies 62Force—Coercion 62Rational Persuasion 63Shared Power 64Resistance to Change 64Why People Resist Change 64Resistance to the Change Itself 65Resistance to the Change Strategy 65Resistance to the Change Agent 65How to deal with Resistance 65Footnotes 67Source Notes 71SECTION TWO 73High Performance Context of Organizational Behavior 75OB and Changing Customer Expectations 75OB and the Changing Workforce 75OB and Changing Organizations 77What is a High Performance Organization? 78Emphasis on Intellectual Capital 78Key Components of High Performance Organizations 79Employee Involvement 79Self-Directing Work Teams 79Integrated Production Technologies 80Organizational Learning 80Total Quality Management 80Management Challenges of High Performance Organizations 81Environmental Linkages 81Internal Integration 81Middle Manager Roles 82High Level Leadership 83Greenfield Sites Versus Redesigns 83Illustrative Case: Creating a High Performance Organization 84Change Leadership 84Total Systems Commitment 85Implementation Processes 85Groups in Organizations 87What Is an Effective Group 87Unique Contributions of Groups 87Formal Groups 89Informal Groups 90Stages of Group Development 90Forming Stage 90Storming Stage 90Norming Stage 91Performing Stage 91Adjourning Stage 92Input Foundations of Group Effectiveness 92Tasks 93Goals, Rewards, and Resources 93Technology 93Membership Characteristics 94Group Size 95Group and Intergroup Dynamics 95What Goes on within Groups 95What Goes on between Groups 96Decision Making in Groups 96How Groups Make Decisions 97Assets and Liabilities of Group Decision Making 98Groupthink 98 Contents■viiHow to Improve Group Decision Making 99Brainstorming 99Nominal Group Technique 99Delphi Technique 100Computer-Mediated Decision Making 100High Performance Teams 100Types of Teams 100The Nature of Teamwork 101Diversity and Team Performance 102Team Building 103How Team Building Works 103Approaches to Team Building 104Improving Team Processes 105New Member Problems 105Task and Maintenance Leadership 105Roles and Role Dynamics 106Positive Norms 107Team Cohesiveness 108Conformity to Norms 109Influencing Cohesiveness 109Teams and the High Performance Workplace 110Problem-Solving Teams 110Cross-Functional Teams 111Virtual Teams 111Self-Managing Teams 112How Self-Managing Teams Work 112Operational Implications of Self-Managing Teams 113Decision Making Process 114Decision Environments 114Types of Decisions 115Decision Making Models 115Classical and Behavioral Decision Theory 116The Garbage Can Model 117Decision Making Realities 118Intuition, Judgment, and Creativity 118Judgmental Heuristics 119Creativity Factors 120Managing the Decision-Making Process 120Choosing Problems to Address 121Deciding Who Should Participate 121Knowing When to Quit – Eliminating Escalating Commitments 123Technology, Culture, and Ethics in Decision Making 124Information Technology and Decision Making 124Cultural Factors and Decision Making 125Ethical Issues and Decision Making 126Conflict 127Types of Conflict 127Levels of Conflict 127Functional and Dysfunctional Conflicts 128Culture and Conflict 129Managing Conflict 130Stages of Conflict 130Causes of Conflict 131Indirect Conflict Management Approaches 132Reduced Interdependence 132Appeals to Common Goals 132Hierarchical Referral 133Altering Scripts and Myths 133Direct Conflict Management Approaches 133Lose—Lose Conflict 134Win—Lose Conflict 134Win—Win Conflict 135Negotiation 135What is Negotiation? 135Negotiation Goals and Outcomes 135Ethical Aspects of Negotiation 136Organizational Settings for Negotiation 136Culture and Negotiation 136Negotiation Strategies 137Distributive Negotiation 137Integrative Negotiation 138How to Gain Integrative Agreements 138Attitudinal Foundations 139Behavioral Foundations 139Information Foundations 139Common Negotiation Pitfalls 139Third-Party Roles in Negotiation 140Footnotes 140Source Notes 144SECTION THREE 145What Is Motivation 147Reinforcement, Content, and Process Theories 147Motivation Across Cultures 147Reinforcement 148Classical and Operant Conditioning 148Reinforcement Strategies 150Positive Reinforcement 150Negative Reinforcement (Avoidance) 152Punishment 153Extinction 153Summary of Reinforcement Strategies 153Reinforcement Perspectives: Usage and Ethical Issues 154Content Theories of Motivation 155Hierarchy of Needs Theory 155 viii■ContentsERG Theory 156Acquired Needs Theory 157Two-Factor Theory 157Process Theories 159Equity Theory 159Expectancy Theory 160Integrating the Motivation Theories 162Job Satisfaction 162Job Satisfaction, Retention and Performance 163Argument: Satisfaction Causes Performance 163Argument: Performance Causes Satisfaction 163Argument: Rewards Cause Both Satisfaction and Performance 164Integrated Model of Motivation 164Dynamics of Stress 165Sources of Stress 165Work-Related Stressors 165Nonwork and Personal Stressors 166Stress and Performance 166Stress and Health 167Stress Management 167Footnotes 168Source Notes 169SECTION FOUR 171Power 173Position Power 173Personal Power 174Acquiring and Using Power and Influence 175Building Position Power 175Building Personal Power 176Combined Building of Position and Personal Power 176Turning Power into Relational Influence 177Power, Formal Authority, and Obedience 178The Milgram Experiments 178Obedience and the Acceptance of Authority 179Obedience and the Zone of Indifference 180Empowerment 181The Power Keys to Empowerment 181Changing Position Power 182Expanding the Zone of Indifference 182Power as an Expanding Pie 182Organizational Politics 183The Two Traditions of Organizational Politics 183The Double-Edged Sword of Organizational Politics 184Organizational Politics and Self-Protection 184Avoidance 185Redirecting Responsibility 185Defending Turf 186Political Action and the Manager 186Political Action and Subunit Power 187Political Action in the Chief Executive Suite 187Resource Dependencies 188Organizational Governance 188The Nature of Communication 190The Communication Process 190Feedback and Communication 192Essentials of Interpersonal Communication 192Effective and Efficient Communication 192Nonverbal Communication 193Active Listening 194Communication Barriers 195Physical Distractions 195Semantic Problems 195Mixed Messages 196Cultural Differences 196Absence of Feedback 196Status Effects 197Organizational Communication 197Formal and Informal Channels 197Communication Flows and Directions 198Communication Networks 199Communication and the High Performance Workplace 200Changing Technologies 201Complex Social Context 202Footnotes 203Source Notes 204SECTION FIVE 205Organizational Behavior and Globalization 207A Global Economy 207Regional Economic Alliances 208Global Quality Standards 209Global Managers 209Cultures and Cultural Diversity 209Popular Dimensions of Culture 210Language 210Time Orientation 210Use of Space 211Religion 211Values and National Cultures 212Understanding Cultural Differences 213Globalization and People at Work 214Multinational Employers 215 Multicultural Workforces 215Expatriate Work Assignments 216Ethical Behavior Across Cultures 217A Global View of Organizational Learning 219Are Management Theories Universal? 219Best Practices Around the World 220Technology and Job Design 220Automation and Robotics 220Flexible Manufacturing Systems 221Electronic Offices 221Work-Flow and Process Reengineering 222Goal Setting and Job Design 222Goal Setting Theory 222Goal Setting Guidelines 222Goal Setting and MBO 224Alternative Work Arrangements 225Compressed Work Weeks 225Flexible Working Hours 225Job Sharing 226Work at Home and the Virtual Office 227Part-Time Work 227Organizational Design and Size 228The Simple Design for Smaller Units and Firms 228Operations Technology and Organizational Design 229Thompson’s View of Technology 229Woodward’s View of Technology 230Where Operations Technology Dominates: The Adhocracy 230Information Technology and Organizational Design 231Information Technology as a Substitute 231Information Technology as a Capability for Learning 232Information Technology as a Strategic Capability 233Environment and Organizational Design 234Environmental Complexity 235Environmental Richness 235Environmental Interdependence 236Uncertainty and Volatility 236Using Alliances Where Environmental Factors Dominate 236Strategy and Organizational Design 237Competency-Based Strategies 238Footnotes 238Source Notes 241THE OB SKILLS WORKBOOK 243The Collection 245ARTICLE 1The Company of the Future Robert B. Reich245Money Makes It Mutual 246Mission Makes a Difference 247Learning Makes You Grow 248Fun Makes It Fresh 249Pride Makes It Special 250Balance Makes It Sustainable 250The 21st-Century Company 252ARTICLE 2Life In The Fast Lane Chuck Salter 252It Sounds a Lot Like Auto Racing 252New Teams Should Do Things in New Ways 253You Win as a Team 253Push for Perfection – but Accept Imperfection 254To Speed Up, Slow Down 254Don’t Strut Your Stuff 254To Win the Race, Drive by Different Rules 254Face Down Your Toughest Competitor: Success 255ARTICLE 3Danger: Toxic Company Alan M. Webber 255The One Guaranteed Way to Get a 30% to 40% ProductivityGain 255“Welcome to the Toxic Workplace! We Fire at Will!” 256A Place Where People Come to Work to Get Rich Enough toQuit 256Toxic Flextime: "Work any 18 Hours You Want." 256What’s the Difference Between a Factor of Production and aHuman Being? 256If Your Company Is So Great, Why Doesn’t Anyone Want toWork There? 256Which is Better Business – Paying Signing Bonuses or TreatingPeople Right? 257When You Look at Your People, What Do You See – Expensesor Assets? 257Why Nothing Changes #1: Wishing Doesn’t Make It So257Why Nothing Changes #2: Memory Is No Substitute forThinking 258How to Make Something Change: Start with You 258ARTICLE 4Learning for a Change Alan M. Webber 258What’s Your Assessment of the Performance of Large-ScaleChange Efforts over the Past Decade? 259Why Haven’t There Been More Successful Change Efforts?259So What Is the Deeper Explanation for the Failure ofCorporate Change Efforts? 259What Implications Does a Machine Mind-Set Have forCompanies that Seek to Undergo Change? 260Where, Specifically, Does the Mechanical Approach GoWrong in Effecting Change? 260What Happens When You See a Company as a Part ofNature? 260How Does Challenging the Idea of the Hero-Leader PromoteChange? 261If the Idea of the Hero-Leader Takes Us in the WrongDirection, What’s the Right Direction? 261What’s the Best Way to Begin Creating Change? 262After a Pilot Group Forms, What Are the Next Steps? 262Contents■ix [...]... diversity among people, and accepts the imprint of a globalization on everyday living and organizational competitiveness In this new era of work and organizations, the body of knowledge we call organizational behavior offers many insights of great value WHAT IS ORGANIZATIONAL BEHAVIOR? Formally defined, organizational behavior OB for short—is the study of individuals and groups in organizations Learning... of knowledge with strong ties to the behavioral sciences—psychology, sociology, Organizational learning is the process of acquiring knowledge and using information to adapt successfully to changing circumstances 6 s Organizational Behavior Figure 1.1 Research methods in organizational behavior Field Studies in real life organizational settings Meta analyses using statistics to pool results of different... action 14 s Organizational Behavior pants learn how to identify and deal with these common rationalizations that are sometimes used to help justify actual or potential misconduct.35 Ways to rationalize unethical behavior • Pretending the behavior is not really unethical or illegal • Excusing the behavior by saying it’s really in the organization’s or your best interest • Assuming the behavior is okay... special section, The Organizational Behavior Workbook, designed specifically to help you begin this process Included in the workbook are many opportunities for you, individually and in student study groups, to analyze readings and cases, participate in experimental exercises, and complete skills-assessment inventories to advance your learning SCIENTIFIC FOUNDATIONS OF ORGANIZATIONAL BEHAVIOR As far back... of organizational behavior emerged as a broader and encompassing approach Today, it continues to evolve as a discipline devoted to scientific understanding of individuals and groups in organizations, and of the performance implications of organizational structures, systems, and processes.13 Interdisciplinary Body of Knowledge OB is an interdisciplinary body of knowledge with strong ties to the behavioral... Secretary of Labor Robert Reich says: “Everybody works for somebody or something—be it a board of directors, a pension fund, a venture capitalist, or a Organizational behavior is the study of individuals and groups in organizations 4 s Organizational Behavior traditional boss Sooner or later you’re going to have to decide who you want to work for.”5 In making this decision, you will want to join a progressive... allied social sciences—such as economics and political science Organizational behavior is unique, however, in its devotion to applying and integrating these diverse insights to achieve a better understanding of human behavior in organizations Use of Scientific Methods OB uses scientific methods to develop and empirically test generalizations about behavior in organizations Figure 1.1 describes research methodologies... (3) only explanations that can be scientifically verified are accepted Research concepts and designs in OB are explained further in the module “Research Methods in Organizational Behavior. ” Focus on Application The field of organizational behavior focuses on applications that can make a real difference in how organizations and people in them perform Outcome or dependent variables studied by researchers,... action, that the field of organizational behavior becomes especially important A knowledge of OB is essential to effective strategy implementation Things happen in organizations because of the efforts of people, and how people work together in organizations is what OB is all about Organizations are collections of people working together to achieve a common purpose 8 s Organizational Behavior PEOPLE AND... Money People TRANSFORMATION PROCESS PRODUCT OUTPUTS Organization Finished Goods and Services Work Activity Consumer Feedback Section One s 9 Organizational Behavior and Management Regardless of your career direction and entry point, the field of organizational behavior will someday become especially important as you try to master the special challenges of working as a manager In all organizations, managers . Contents SECTION ONE 1 Organizational Behavior Today 3What Is Organizational Behavior? 3Shifting Paradigms of Organizational Behavior 3Organizational Behavior and. version) SECTION ONE 1 Organizational Behavior Today 3Learning About Organizational Behavior 5Organizations as Work Settings 7Organizational Behavior and Management