Understanding and Managing Organizational Behavior This page intentionally left blank Understanding and Managing Organizational Behavior SIXTH EDITION Jennifer M. Jones Graduate School of Business Rice University Gareth R. Jones Mays Business School Texas A & M University PRENTICE HALL Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montréal Toronto Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editorial Director: Sally Yagan Sr. Art Director/Design Supervisor: Janet Slowik Editor in Chief: Eric Svendsen Art Director: Steve Frim Director of Editorial Services: Ashley Santora Interior and Cover Designer: Judy Allen Editorial Project Manager: Meg O’Rourke Cover Art: IMAGEZOO/SuperStock Editorial Assistant: Carter Anderson Manager, Rights and Permissions: Hessa Albader Director of Marketing: Patrice Lumumba Jones MyLab Product Manager: Joan Waxman Marketing Manager: Nikki Ayana Jones Editorial Media Project Manager: Denise Vaughn Marketing Assistant: Ian Gold Media Project Manager: Lisa Rinaldi Senior Managing Editor: Judy Leale Full-Service Project Management and Composition: Production Project Manager: Ilene Kahn Integra Software Services, Inc.
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Includes bibliographical references and index.3—dc22 2010045891 10 9 8 7 6 5 4 3 2 1 ISBN 10: 0-13-612443-7 ISBN 13: 978-0-13-612443-6 Brief Contents Preface xxi Chapter 1 Introduction to Organizational Behavior 2 Appendix: A Short History of Organizational Behavior Research 35 PART 1 INDIVIDUALS IN ORGANIZATION 36 Chapter 2 Individual Differences: Personality and Ability 36 Chapter 3 Values, Attitudes, and Moods and Emotions 64 Chapter 4 Perception, Attribution, and the Management of Diversity 94 Chapter 5 Learning and Creativity 126 Chapter 6 The Nature of Work Motivation 154 Chapter 7 Creating a Motivating Work Setting 180 Chapter 8 Pay, Careers, and Changing Employment Relationships 210 Chapter 9 Managing Stress and Work-Life Balance 242 PART 2 GROUP AND TEAM PROCESSES 276 Chapter 10 The Nature of Work Groups and Teams 276 Chapter 11 Effective Work Groups and Teams 306 Chapter 12 Leaders and Leadership 336 Chapter 13 Power, Politics, Conflict, and Negotiation 370 Chapter 14 Communicating Effectively in Organizations 400 Chapter 15 Decision Making and Organizational Learning 434 PART 3 ORGANIZATIONAL PROCESSES 468 Chapter 16 Organizational Design and Structure 468 Chapter 17 Organizational Culture and Ethical Behavior 500 Chapter 18 Organizational Change and Development 530 Appendix Research Methods in Organizational Behavior 560 Glossary 566 References 575 Name Index 624 Company Index 632 Subject Index 634 This page intentionally left blank Contents Preface xxi Chapter 1 Introduction to Organizational Behavior 2 Opening Case Ursula Burns Succeeds Anne Mulcahy as CEO of Xerox 3 Overview 4 What Is Organizational Behavior? 5 The Nature of Organizational Behavior 5 Levels of OB 6 OB and Management 8 Managerial Functions 9 ■ OB TODAY: How Joe Coulombe Used OB to Make Trader Joe’s a Success Story 11 Managerial Roles 12 Managerial Skills 12 Challenges for OB 13 Challenge 1: The Changing Social and Cultural Environment 14 Developing Organizational Ethics and Well-Being 14 ■ ETHICS IN ACTION: How Unethical Behavior Shut Down a Meat-packing Plant 16 Dealing with a Diverse Workforce 17 Challenge 2: The Evolving Global Environment 19 Understanding Global Differences 19 ■ GLOBAL VIEW: IKEA’s Worldwide Approach to OB 20 Global Learning 21 Global Crisis Management 22 Challenge 3: Advancing Information Technology 23 IT and Organizational Effectiveness 24 IT, Creativity, and Organizational Learning 24 Challenge 4: Shifting Work and Employment Relationships 25 ■ YOU’RE THE MANAGEMENT EXPERT: Moving to Self-Managed Teams 26 SUMMARY 27 EXERCISES IN UNDERSTANDING AND MANAGING ORGANIZATIONAL BEHAVIOR 28 CLOSING CASE: How Jeff Bezos Manages at Amazon.com 31 Appendix: A Short History of OB 32 F. Taylor and Scientific Management 32 The Work of Mary Parker Follett 33 The Hawthorne Studies and Human Relations 33 Theory X and Theory Y 34 Theory X 34 Theory Y 34 PART 1 INDIVIDUALS IN ORGANIZATIONS 36 Chapter 2 Individual Differences: Personality and Ability 36 Opening Case Nooyi’s Determination 37 Overview 38 VII VIII CONTENTS The Nature of Personality 38 Determinants of Personality: Nature and Nurture 39 Personality and the Situation 39 ■ FOCUS ON DIVERSITY: Liane Pelletier Transforms Alaska Communications 41 Personality: A Determinant of the Nature of Organizations 42 The Big Five Model of Personality 42 Extraversion 43 Neuroticism 44 Agreeableness 45 Conscientiousness 45 Openness to Experience 45 ■ GLOBAL VIEW: Fujio Mitarai Cuts Costs, Develops New Products, and Protects the Environment at Canon 47 ■ YOU’RE THE MANAGEMENT EXPERT: Understanding a New Employee 48 Conclusions 49 Other Organizationally Relevant Personality Traits 49 Locus of Control 49 Self-Monitoring 49 Self-Esteem 50 Type A and Type B Personalities 51 Needs for Achievement, Affiliation, and Power 52 How Personality Is Measured 53 The Nature of Ability 53 Cognitive Ability 53 Physical Ability 54 Where Do Abilities Come from and How Are They Measured? 55 Emotional Intelligence: A Different Kind of Ability 56 The Management of Ability in Organizations 57 Selection 58 Placement 58 Training 58 SUMMARY 59 EXERCISES IN UNDERSTANDING AND MANAGING ORGANIZATIONAL BEHAVIOR 60 CLOSING CASE: Mark Wilson Creates a Different Kind of Telemarketer 63 Chapter 3 Values, Attitudes, and Moods and Emotions 64 Opening Case Satisfied, Committed, and Happy Employees at Nugget Markets 65 Overview 66 Values, Attitudes, and Moods and Emotions 66 The Nature of Values 67 ■ ETHICS IN ACTION: Gentle Giant Moving Company Values Honesty 70 The Nature of Work Attitudes 71 The Nature of Moods and Emotions 71 Relationships Between Values, Attitudes, and Moods and Emotions 74 Job Satisfaction 75 ■ OB TODAY: Job Satisfaction Declines in the United States 76 Determinants of Job Satisfaction 76 Theories of Job Satisfaction 79 The Facet Model of Job Satisfaction 80 Herzberg’s Motivator-Hygiene Theory of Job Satisfaction 81 CONTENTS IX The Discrepancy Model of Job Satisfaction 82 The Steady-State Theory of Job Satisfaction 83 Measuring Job Satisfaction 83 Potential Consequences of Job Satisfaction 83 Does Job Satisfaction Affect Job Performance? 83 Absenteeism 85 Turnover 85 Organizational Citizenship Behavior 87 Employee Well-Being 87 Organizational Commitment 88 Determinants of Affective Commitment 88 ■ YOU’RE THE MANAGEMENT EXPERT: Increasing Affective Commitment 88 Potential Consequences of Affective Commitment 89 SUMMARY 89 EXERCISES IN UNDERSTANDING AND MANAGING ORGANIZATIONAL BEHAVIOR 90 CLOSING CASE: Paetec’s Values Lead to a Satisfied and Committed Workforce 93 Chapter 4 Perception, Attribution, and the Management of Diversity 94 Opening Case Effectively Managing Diversity is an Ongoing Journey 95 Overview 96 The Nature of Perception 97 Motivation and Performance 98 Fairness and Equity 98 Ethical Action 99 Characteristics of the Perceiver 99 Schemas: The Perceiver’s Knowledge Base 100 ■ FOCUS ON DIVERSITY: Discrimination in Layoff Decisions 101 The Perceiver’s Motivational State 102 The Perceiver’s Mood 103 Characteristics of the Target and Situation 103 Ambiguity of the Target 104 Social Status of the Target 104 Impression Management by the Target 105 Information Provided by the Situation 106 Standing Out in the Crowd: The Effects of Salience in a Situation 107 ■ ETHICS IN ACTION: Disabled Employees Key to Success at Habitat International 109 Biases and Problems in Person Perception 110 Primacy Effects 111 Contrast Effects 111 Halo Effects 111 Similar-to-Me Effects 112 Harshness, Leniency, and Average Tendency Biases 112 Knowledge-of-Predictor Bias 112 Attribution Theory 113 Internal and External Attributions 114 Attributional Biases 115 ■ YOU’RE THE MANAGEMENT EXPERT: Helping a Coworker 116 Effectively Managing a Diverse Workforce 116 Securing Top-Management Commitment to Diversity 117 X CONTENTS Diversity Training 117 Education 117 Mentoring Programs 118 Sexual Harassment 119 SUMMARY 120 EXERCISES IN UNDERSTANDING AND MANAGING ORGANIZATIONAL BEHAVIOR 121 CLOSING CASE: Sodexo and Principle Financial Group Recognized for the Effective Management of Diversity 125 Chapter 5 Learning and Creativity 126 Opening Case UPS Is Very Serious About Learning 127 Overview 128 The Nature of Learning 129 Learning through Consequences 129 Encouraging Desired Behaviors through Positive and Negative Reinforcement 130 Shaping 133 Discouraging Undesired Behaviors through Extinction and Punishment 133 Organizational Behavior Modification 135 Ethical Issues in OB MOD 136 Learning from Others 136 ■ GLOBAL VIEW: Vicarious Learning at the Ritz-Carlton 138 Learning on Your Own 140 Beliefs about One’s Ability to Learn: The Role of Self-Efficacy 141 Sources of Self-Efficacy 142 Learning by Doing 143 Continuous Learning through Creativity 143 The Creative Process 143 Characteristics of Employees That Contribute to Creativity 145 ■ OB TODAY: Jim Newton’s Openness to Experience Helps Others Be Creative 145 Characteristics of the Organizational Situation That Contribute to Creativity 146 The Interaction of Personality and Situational Factors 147 ■ YOU’RE THE MANAGEMENT EXPERT: Encouraging Independent Thinking 148 The Learning Organization 148 SUMMARY 149 EXERCISES IN UNDERSTANDING AND MANAGING ORGANIZATIONAL BEHAVIOR 150 CLOSING CASE: Continuous Learning and Innovation 153 Chapter 6 The Nature of Work Motivation 154 Opening Case High Motivation at Enterprise Rent-A-Car 155 Overview 156 What is Work Motivation? 157 Direction of Behavior 157 Level of Effort 158 Level of Persistence 158 The Distinction Between Motivation and Performance 158 Intrinsic and Extrinsic Motivation 159 Theories of Work Motivation 160 CONTENTS XI Need Theory 160 Maslow’s Hierarchy of Needs 161 Alderfer’s ERG Theory 162 The Research Evidence 163 Expectancy Theory 163 Valence: How Desirable Is an Outcome? 164 ■ OB TODAY: Motivating Loyal Employees at the Container Store 164 Instrumentality: What Is the Connection Between Job Performance and Outcomes? 165 Expectancy: What Is the Connection Between Effort and Job Performance? 166 The Combined Effects of Valence, Instrumentality, and Expectancy on Motivation 167 Equity Theory 168 Equity 168 Inequity 169 Ways to Restore Equity 169 The Effects of Inequity and the Research Evidence 170 Organizational Justice Theory 170 Forms of Organizational Justice 170 ■ YOU’RE THE MANAGEMENT EXPERT: When Equal Treatment Backfires 171 ■ ETHICS IN ACTION: Organizational Justice at Genentech 173 Consequences of Organizational Justice 174 SUMMARY 175 EXERCISES IN UNDERSTANDING AND MANAGING ORGANIZATIONAL BEHAVIOR 175 CLOSING CASE: Motivating Employees at the SAS Institute 178 Chapter 7 Creating a Motivating Work Setting 180 Opening Case High Motivation Results in Exceptional Customer Service at Zappos 181 Overview 182 Job Design: Early Approaches 183 Scientific Management 183 Job Enlargement and Job Enrichment 185 Job Design: The Job Characteristics Model 186 Core Job Dimensions 186 ■ OB TODAY: Tough Economic Times Result in Changes in Job Design 188 The Motivating Potential Score 188 Critical Psychological States 192 Work and Personal Outcomes 193 The Role of Individual Differences in Employees’ Responses to Job Design 193 The Research Evidence 195 Job Design: The Social Information Processing Model 195 ■ YOU’RE THE MANAGEMENT EXPERT: Redesigning Jobs 196 The Role of the Social Environment 196 The Role of Past Behaviors 197 Job Design Models Summarized 198 ■ FOCUS ON DIVERSITY: Job Sharing a Viable Option 199 Organizational Objectives 200 ■ GLOBAL VIEW: Offshoring Expands Into Many Kinds of Jobs 201 Goal Setting 202 What Kinds of Goals Lead to High Motivation and Performance? 202 Why Do Goals Affect Motivation and Performance?