Contents

Preface ix Chapter 2 Models of Organizational Behavior

CHAPTER OBJECTIVES 24 An Organizational Behavior System 25 28

24

PART ONE
FUNDAMENTALS OF ORGANIZATIONAL BEHAVIOR Chapter 1 The Dynamics of People and Organizations 2
CHAPTER OBJECTIVES 2 Understanding Organizational Behavior 3

Elements of the System

25

Models of Organizational Behavior

The Autocratic Model 31 The Custodial Model 31 The Supportive Model 33 The Collegial Model 34 The System Model 35 Conclusions about the Models

37

Definition 3 Goals 4 Forces 4 Positive Characteristics of the Organizational Behavior Field 6

Fundamental Concepts

8
10

The Nature of People 9 The Nature of Organizations

Basic Approaches of This Book

12
12

A Human Resources (Supportive) Approach A Contingency Approach 13 A Results-Oriented Approach 13 A Systems Approach 15

SUMMARY 39 Terms and Concepts for Review 40 Discussion Questions 40 Assess Your Own Skills 41 Incident: The New Plant Manager 42 Experiential Exercise: The Rapid Corporation 43 Generating OB Insights 43 WHAT MANAGERS ARE READING 32, 37 AN ETHICAL ISSUE 36 MANAGING ACROSS NATIONAL BOUNDARIES 38 ADVICE TO FUTURE MANAGERS 40

Limitations of Organizational Behavior

Behavioral Bias 16 The Law of Diminishing Returns 17 Unethical Manipulation of People 17

16

Chapter 3 Managing Communications

CHAPTER OBJECTIVES 44 Communication Fundamentals 45

44

Continuing Challenges

18

Seeking Quick Fixes 18 Varying Environments 19

SUMMARY 19 Terms and Concepts for Review 19 Discussion Questions 20 Assess Your Own Skills 20 Incident: The Transferred Sales Representative 21 Experiential Exercise: Ethics in Organizational Behavior 22 Generating OB Insights 23 WHAT MANAGERS ARE READING 7, 11 ADVICE TO FUTURE MANAGERS 18

The Importance of Communication 45 The Two-Way Communication Process 46 Potential Problems 49 Communication Barriers 50 Communication Symbols 51 The Impact of Barriers on the Communication Process 54

Downward Communication

55

Prerequisites and Problems 55 Communication Needs 56

Upward Communication

57
59

Difficulties 58 Upward Communication Practices

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Other Forms of Communication

Lateral Communication 62 Electronic Communication 63

62

Informal Communication
Features of the Grapevine Rumor 67

65
66

SUMMARY 68 Terms and Concepts for Review 69 Discussion Questions 69 Assess Your Own Skills 70 Incident: A Breakdown in Communications 71 Experiential Exercise: Communication Style 72 Generating OB Insights 72 WHAT MANAGERS ARE READING 48 GLOBAL COMMUNICATION PRACTICES 51 AN ETHICAL QUESTION 56 DIVERSITY IN COMMUNICATIONS 59 ADVICE TO FUTURE MANAGERS 69

Discussion Questions 95 Assess Your Own Skills 95 Incident: Liberty Construction Company 97 Experiential Exercise: Role Perceptions of Students and Instructors 97 Generating OB Insights 97 AN ETHICS QUESTION 80 WHAT MANAGERS ARE READING 88 ADVICE TO FUTURE MANAGERS 94

PART TWO
MOTIVATION AND REWARD SYSTEMS 99 Chapter 5 Motivation 100

Chapter 4 Social Systems and Organizational Culture 74

CHAPTER OBJECTIVES 74 Understanding a Social System 75
Social Equilibrium 75 Functional and Dysfunctional Effects 76 Psychological and Economic Contracts 76

CHAPTER OBJECTIVES 100 A Model of Motivation 101 Motivational Drives 102

Achievement Motivation 102 Affiliation Motivation 103 Power Motivation 103 Managerial Application of the Drives

103

Human Needs

103

Social Culture

78

Cultural Diversity 78 Social Culture Values 79

Types of Needs 104 Maslows Hierarchy of Needs 105 Herzbergs Two-Factor Model 106 Alderfers E-R-G Model 108 Comparison of the Maslow, Herzberg, and Alderfer Models 109

Role

80

Behavior Modification

109

Role Perceptions 80 Mentors 82 Role Conflict 83 Role Ambiguity 84

Law of Effect 109 Alternative Consequences 110 Schedules of Reinforcement 112 Interpreting Behavior Modification

112

Status

84

Goal Setting

113
113

Status Relationships 85 Status Symbols 85 Sources of Status 86 Significance of Status 87

Elements of Goal Setting

The Expectancy Model

115

Organizational Culture

87

The Three Factors 115 How the Model Works 116 Interpreting the Expectancy Model

118

Characteristics of Cultures 88 Measuring Organizational Culture 90 Communicating and Changing Culture 90

The Equity Model

119
121

Interpreting the Equity Model

Fun Workplaces 93 SUMMARY 94 Terms and Concepts for Review 95

Interpreting Motivational Models 122 SUMMARY 123 Terms and Concepts for Review 124 Discussion Questions 124

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Assess Your Own Skills 125 Role-Play: The Downsized Firm 126 Incident: The Piano Builder 127 Experiential Exercise: Are Grades Motivators? 128 Generating OB Insights 128 WHAT MANAGERS ARE READING 104 TEMPORARY WORKERS: ANOTHER FORM OF DIVERSITY 119 AN ETHICS QUESTION 121 ADVICE TO FUTURE MANAGERS 123

Chapter 7 Leadership

158

CHAPTER OBJECTIVES 158 The Nature of Leadership 159

Management and Leadership 159 Traits of Effective Leaders 160 Leadership Behavior 161 Situational Flexibility 162 Followership 163

Behavioral Approaches to Leadership Style

163

Chapter 6 Appraising and Rewarding Performance 130

CHAPTER OBJECTIVES 130 A Complete Program 131 Money as a Means of Rewarding Employees

Positive and Negative Leaders 164 Autocratic, Consultative, and Participative Leaders 164 Leader Use of Consideration and Structure 165 Blake and Moutons Managerial Grid 165

Contingency Approaches to Leadership Style 132

Fiedlers Contingency Model 167 Hersey and Blanchards Situational Leadership Model 168 Path-Goal Model of Leadership 170 Vrooms Decision-Making Model 171

167

Application of the Motivational Models 133 Additional Considerations in the Use of Money 135

Organizational Behavior and Performance Appraisal 137

Appraisal Philosophy 138 The Appraisal Interview 139 Performance Feedback 140

Emerging Approaches to Leadership

172

Economic Incentive Systems

144
145

Purposes and Types 144 Incentives Linking Pay with Performance Wage Incentives 146 Profit Sharing 148 Gain Sharing 149 Skill-Based Pay 150

Substitutes and Enhancers for Leadership 173 Self-Leadership and Superleadership 174 Coaching 175 Other Approaches 175

SUMMARY 151 Terms and Concepts for Review 152 Discussion Questions 152 Assess Your Own Skills 153 Incident: Plaza Grocery 154 Experiential Exercise: Performance Appraisal/Reward Philosophy 155 Generating OB Insights 156 WHAT MANAGERS ARE READING 136 AN ETHICS QUESTION 143 ADVICE TO FUTURE MANAGERS 151

SUMMARY 175 Terms and Concepts for Review 176 Discussion Questions 177 Assess Your Own Skills 177 Incident: The Work Assignment 178 Experiential Exercise: Application of Leadership Models 179 Generating OB Insights 179 AN ETHICS QUESTION 162 WHAT MANAGERS ARE READING 164 ADVICE TO FUTURE MANAGERS 176

Chapter 8 Empowerment and Participation

180

PART THREE
LEADERSHIP AND EMPOWERMENT 157

CHAPTER OBJECTIVES 180 The Nature of Empowerment and Participation 181

What Is Empowerment? 181 What Is Participation? 182 Why Is Participation Popular?

183

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Benefits of Participation

185

Other Effects

214

How Participation Works

185

Studying Job Satisfaction

214
215

The Participative Process 185 The Impact on Managerial Power 186 Prerequisites for Participation 187 Contingency Factors 189

Benefits of Job Satisfaction Studies Ideal Survey Conditions 215 Use of Existing Job Satisfaction Information 216

Programs for Participation

191

Survey Design and Follow-up

Types of Survey Questions 217 Critical Issues 218 Using Survey Information 218

217

Suggestion Programs 191 Quality Emphasis 192 Self-Managing Teams 193 Employee Ownership Plans 193

Important Considerations in Participation

Limitations of Participation 194 Managerial Concern about Participation Concluding Thoughts 196

194
194

SUMMARY 196 Terms and Concepts for Review 197 Discussion Questions 197 Assess Your Own Skills 197 Incident: Joe Adams 198 Experiential Exercise: Empowerment through Participation 199 Generating OB Insights 199 WHAT MANAGERS ARE READING 189 AN ETHICS QUESTION 191 ADVICE TO FUTURE MANAGERS 196

Changing Employee Attitudes 220 SUMMARY 221 Terms and Concepts for Review 222 Discussion Questions 222 Assess Your Own Skills 223 Incident: Barry Niland 224 Experiential Exercise: Attitudes in the Classroom 224 Generating OB Insights 225 WHAT MANAGERS ARE READING 206 AN ETHICS QUESTION 207 ADVICE TO FUTURE MANAGERS 221

Chapter 10 Issues between Organizations and Individuals 226

CHAPTER OBJECTIVES 226 Areas of Legitimate Organizational Influence
A Model of Legitimacy of Organizational Influence 228 Off-the-Job Conduct 228

PART FOUR
INDIVIDUAL AND INTERPERSONAL BEHAVIOR 201 Chapter 9 Employee Attitudes and Their Effects 202
CHAPTER OBJECTIVES 202 The Nature of Employee Attitudes
Job Satisfaction 204 Job Involvement 206 Organizational Commitment Work Moods 207

227

Rights of Privacy

229
230

203

Policy Guidelines Relating to Privacy Surveillance Devices 230 Honesty Testing 231 Treatment of Alcoholism 231 Drug Abuse 233 Genetic Testing 234 Discrimination 234

207

Discipline 236 Quality of Work Life

236
237

Effects of Employee Attitudes

Employee Performance 208 Turnover 209 Absences and Tardiness 212 Theft 213 Violence 214

208

A Rationale 237 Job Enlargement versus Job Enrichment Applying Job Enrichment 238 Core Dimensions: A Job Characteristics Approach 239 Enrichment Increases Motivation 241

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Social Cues Affect Perceptions 242 Contingency Factors Affecting Enrichment

243

AN ETHICS QUESTION 267 ADVICE TO FUTURE MANAGERS 269

The Individuals Responsibilities to the Organization 244

Organizational Citizenship 244 Dues-Paying 245 Blowing the Whistle on Unethical Behavior Mutual Trust 246

PART FIVE
GROUP BEHAVIOR
245

275 276

SUMMARY 247 Terms and Concepts for Review 247 Discussion Questions 247 Assess Your Own Skills 248 Incident: Two Accounting Clerks 249 Experiential Exercise: The Enriched Student Generating OB Insights 250 WHAT MANAGERS ARE READING 229 AN ETHICS QUESTION 234 ADVICE TO FUTURE MANAGERS 246

Chapter 12 Informal and Formal Groups

CHAPTER OBJECTIVES Group Dynamics 277
Types of Groups 277

276

250

The Nature of Informal Organizations

278

Chapter 11 Interpersonal Behavior

252

CHAPTER OBJECTIVES 252 Conflict in Organizations 253

The Nature of Conflict 253 Levels of Conflict 253 Sources of Conflict 254 Effects of Conflict 257 A Model of Conflict 258

Comparison of Informal and Formal Organizations 278 How Does the Informal Organization Emerge? 278 Member Status and Informal Leaders 279 Benefits of Informal Organizations 281 Problems Associated with Informal Organizations 282 Monitoring Informal Organizations 284 Influencing Informal Organizations 285

Formal Groups

285

Assertive Behavior

261

Interpersonal Orientations 262 Facilitating Smooth Relations 263 Stroking 263

Committees 286 Systems Factors to Consider 286 Structured Approaches 289 Potential Outcomes of Formal Group Processes 293 Consensus: A Key Issue in Decision-Making Groups 294 Weaknesses of Committees 295

Power and Politics

264

Types of Power 264 Effects of Power Bases 265 Organizational Politics 266 Influence and Political Power

266

SUMMARY 270 Terms and Concepts for Review 270 Discussion Questions 270 Assess Your Own Skills 271 Incident: The Angry Airline Passenger 272 Experiential Exercise: Assessing Political Strategies 273 Generating OB Insights 273 WHAT MANAGERS ARE READING 257 A DIVERSITY OF PREFERENCES 260

SUMMARY 297 Terms and Concepts for Review 298 Discussion Questions 298 Assess Your Own Skills 299 Incident: Excelsior Department Store 300 Experiential Exercise: Choosing Your Leader 301 Generating OB Insights 301 WHAT MANAGERS ARE READING 286 AN ETHICS QUESTION 290 THE NEED FOR DIVERSITY IN GROUPS 296 ADVICE TO FUTURE MANAGERS 298

Chapter 13 Teams and Team Building

302

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CHAPTER OBJECTIVES 302 Organizational Context for Teams

Classical Concepts 303 Matrix Organization 304

Implementing Change Successfully 303

333

Teamwork

304

Transformational Leadership and Change 333 Three Stages in Change 335 Manipulating the Forces 336 Building Support for Change 337

Life Cycle of a Team 305 Ingredients of Effective Teams 306 Potential Team Problems 309

Understanding Organization Development

Foundations of OD 340 Characteristics of Organization Development 342 The Organization Development Process Benefits and Limitations of OD 344

340

Team Building

310

The Need for Team Building 310 The Process 311 Specific Team-Building Issues 311 Skills Useful in Team Building 312 Characteristics of Mature Teams 313 Individual Territories versus Team Spaces 314 Self-Managing Teams 315 Virtual Teams 316

343

SUMMARY 317 Terms and Concepts for Review 318 Discussion Questions 318 Assess Your Own Skills 318 Incident: Conflict in the Division 320 Experiential Exercise: Readiness for Self-Managing Teams 320 Experiential Exercise: Team Building 321 Generating OB Insights 321 WHAT MANAGERS ARE READING 307 ETHICAL DILEMMAS WITHIN TEAMS 314 ADVICE TO FUTURE MANAGERS 317

SUMMARY 345 Terms and Concepts for Review 346 Discussion Questions 346 Assess Your Own Skills 347 Incident: The New Sales Procedures 348 Experiential Exercise: The Industrial Engineering Change 349 Experiential Exercise: Applying Force-Field Analysis 350 Generating OB Insights 350 EFFECTS OF A DIVERSE WORKFORCE ON CHANGE 328 AN ETHICS QUESTION 334 WHAT MANAGERS ARE READING 337 ADVICE TO FUTURE MANAGERS 346

Chapter 15 Stress and Counseling

CHAPTER OBJECTIVES Employee Stress 353

352
352

PART SIX
CHANGE AND ITS EFFECTS Chapter 14 Managing Change 324
CHAPTER OBJECTIVES Change at Work 325
The Nature of Change 325 Responses to Change 326 Costs and Benefits 329

323

324

What Stress Is 353 Extreme Products of Stress 354 Causes of Stress 357 Job-Related Causes of Stress 357 Frustration 359 Stress and Job Performance 360 Stress Vulnerability 361 Approaches to Stress Management 362

Employee Counseling

364

Resistance to Change

330

Nature and Effects 330 Reasons for Resistance 331 Types of Resistance 331 Possible Benefits of Resistance

What Counseling Is 364 Need for Counseling 366 What Counseling Can Do 366 The Managers Counseling Role

368

Types of Counseling
333

369

Directive Counseling 369 Nondirective Counseling 370

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Participative Counseling 372 A Contingency View 372

SUMMARY 373 Terms and Concepts for Review 374 Discussion Questions 374 Assess Your Own Skills 375 Incident: Unit Electronics Company 376 Experiential Exercise: Assessment of StressRelated Behaviors 377 Generating OB Insights 378 WHAT MANAGERS ARE READING 356 AN ETHICS QUESTION 369 ADVICE TO FUTURE MANAGERS 373

Incident: The Piedmont Company 401 Experiential Exercise: Adaptability to a Multicultural Assignment 401 Generating OB Insights 402 AN ETHICAL QUESTION 383 WHAT MANAGERS ARE READING 396 ADVICE TO FUTURE MANAGERS 398

PART EIGHT
CASE PROBLEMS 403
INTRODUCTION 405 1 The Virtual Environment Work Team 406 2 The Teaching Hospital 409 3 Creative Toys Company 414 4 Eastern International Food Service Corporation 417 5 Goodman Company 420 6 Falcon Computer 426 7 Consolidated Life 428 8 Video Electronics Company 433 9 Elite Electric Company 436 10 The Patterson Operation 442 11 TRWOilwell Cable Division 446

PART SEVEN
EMERGING ASPECTS OF ORGANIZATIONAL BEHAVIOR Chapter 16 Organizational Behavior across Cultures 380
CHAPTER OBJECTIVES 380 Conditions Affecting Multinational Operations 381
Social Conditions 382 Legal and Ethical Conditions Political Conditions 384 Economic Conditions 385 Individual Differences 385 383

379

Businessworld Case Studies

453 459 464

Case 1: Boring Indian Managers 454 Case 2: The Feeling Corporate

387
390

Managing an International Workforce

Case 3: Reply, Forward or Delete

Barriers to Cultural Adaptation 387 Overcoming Barriers to Cultural Adaptation

Case 4: Managing Image Damagement 469 Case 5: Many Lives, Many Pains-I Glossary 479 474

Productivity and Cultural Contingencies

The Challenge of Achieving Productivity Cultural Contingencies 394

394
394

Cross-Cultural Communication
Transcultural Managers 398

397

SUMMARY 398 Terms and Concepts for Review 399 Discussion Questions 399 Assess Your Own Skills 399

Appendix: Personal Development Plan 492 References Name Index Subject Index 495 511 516