The second edition of Organizational Be- havior relies on three key strategies to help students use OB knowledge to solve problems: ∙ Consistent 3-Step Problem-Solving Approach. ∙ Applied, practical features. ∙ User-centric design. 3-Step Problem-Solving Approach Given problem solving is one of the skills most sought by employers, we help students develop instead of hone this skill. We teach them to use a 3-Step Problem-Solving Approach— (1) define the problem, (2) identify the causes, and (3) implement a solution. This approach is introduced in Chapter One and used multiple times in each subsequent chapter. To comple- ment the 3-Step Approach, we also developed the new Organizing Framework for Under- standing and Applying OB. This framework is used in two ways. First, it provides students a …
The second edition of Organizational Be- havior relies on three key strategies to help students use OB knowledge to solve problems: ∙ Consistent 3-Step Problem-Solving
Approach. ∙ Applied, practical features. ∙ User-centric design.
3-Step Problem-Solving Approach Given problem solving is one of the skills most sought by employers, we help students develop instead of hone this skill. We teach them to use a 3-Step Problem-Solving Approach— (1) define the problem, (2) identify the causes, and (3) implement a solution. This approach is introduced in Chapter One and used multiple
times in each subsequent chapter. To comple- ment the 3-Step Approach, we also developed the new Organizing Framework for Under- standing and Applying OB. This framework is used in two ways. First, it provides students a means for organizing OB concepts into three categories (inputs, processes, and outcomes) as they learn them. This facilitates student learning and shows how concepts relate to each other. Second, it is an important and com- plementary tool for problem solving. Problems are often defined in terms of outcomes in the Organizing Framework, and the causes are commonly found in the inputs and processes elements. Students use this framework in every chapter to solve problems confronted by real organizations and employees.
We provide many opportunities for students to practice using the 3-Step Problem-Solving Approach. Problem-Solving Application Mini- Cases are inserted throughout each chapter. These provide numerous opportunities for students to apply their OB knowledge and practice their problem solving skills to real companies and people. The longer Problem-Solving Application Case at the end of each chapter presents more complex and current business cases containing one or more problems that illustrate OB concepts in- cluded in a particular chapter. A version of the Organizing Framework is presented in each chapter and is populated with relevant con- cepts from that chapter, which students then use to define and solve problems presented in the various features. This capstone Cumulative Case activity provides students the opportu- nity to apply the 3-Step Problem-Solving Approach on an actual situation affecting a specific firm (Volkswagen).
We carry the 3-Step Problem-Solving Approach into Connect, McGraw-Hill’s market-leading digital platform, and provide students with numerous opportunities to observe how different decisions can lead to different outcomes. We also offer new criti- cal-thinking application exercises tied to the
questions. They provide an effective tool to assessing student’s ability to solve problems using OB concepts and theories. SmartBook is another key component. This adaptive and data-driven reading experience gives students ample opportunity to develop mastery of key learning objectives tied to core OB concepts, while also providing instructors real-time snapshots of student comprehension.
User-Centric Approach It is important for us to offer users, whether stu- dents or instructors, a tool that is easy to navi- gate, easy to digest, and exceptionally practical. We therefore have taken great care to create content, craft our writing, and include features that focus on the needs and interests of the user. To that end, Major Questions open the main sections of each chapter and immediately place students in a personal, practical learning mode. These questions introduce key concepts by ask- ing students to consider the practical value of the concepts for them personally.
We also present content in digestible chunks of text, with frequent opportunities to engage with or reflect on the material. The Winning at Work feature opens each chapter with a list of practical tips related to a highly relevant topic for work and/or school, such as negotiating a salary for a new job or a pay raise, or how to manage meetings more effec- tively. Self-Assessments in Connect allow students to evaluate personal characteristics related to OB concepts, as well as to reflect on their own characteristics and behavior. Take- Away Applications ask students to apply the material and concepts immediately after read- ing. What Did I Learn provides students with a review of the chapter’s key concepts, an invi- tation to answer the chapter’s opening Major Questions, and a summary of the Organizing Framework for a given chapter.
Connect Tabs give instructors the founda- tions for creating a Connect course that fits their individual teaching needs. A new Teach- ing Resource Manual offers a playbook for creating and delivering a discussion-based learning environment in which students practice and apply concepts in a more active manner. The extensively revised Test Bank now offers greater opportunity to assess students on OB concepts at a higher level. The updated Test Bank includes essay and scenario-based ques- tions to engage students’ problem-solving skills.
Problem-Solving Application boxes and Problem-Solving Application Cases, giving students additional practice with applying the 3-Step Approach. These activities are a com- bination of case analyses, video cases, and click-and-drag exercises.
Applied, Practical Approach The second edition repeatedly demonstrates the practical value of OB concepts in solving real-world problems in students’ professional and personal lives. New OB in Action boxes illustrate OB concepts or theories in action in the real world, featuring well-known compa- nies. New Applying OB boxes offer students “how-to” guidance on applying their knowl- edge in both their professional and personal lives. Appearing at the end of each chapter are new Implications boxes that explain to stu- dents the practical value of OB concepts—one for their personal use now (Implications for Me) and the other for managers (Implications for Managers).
Legal/Ethical Challenges ask students to choose from several proposed courses of action or invent their own to resolve a business situa- tion that falls into a gray area of ethics at work.
Connect provides a multitude of opportuni- ties for active practice and application of con- cepts learned during class or while completing assigned reading. For example, new to this edition are short problem-solving application mini cases that can be used as essay exam
“Focuses on the practical applications of OB versus only theory.”
Charla Fraley —Columbus State Community College
“The text uses a problem- solving approach framework to demonstrate OB and help students apply OB theories to real-life issues.”
Jennifer Malarski —Metropolitan State University
Developing Effective Problem Solvers Today, Valued Leaders Tomorrow Organizational Behavior, 2e, explicitly ad- dresses OB implications for students’ jobs and careers, showing how OB provides them with the higher-level soft skills employers seek, such as problem solving, critical thinking, leadership, and decision making. We strongly believe that applying OB theories and con- cepts provides tremendous value to students’ lives today and throughout their careers. The understanding and application of OB enhances student effectiveness at school and work, both today and tomorrow.
“The method used by Kinicki/ Fugate allows students to think about the concepts presented in a way that is relevant to their lives. This allows them to understand how these concepts relate to the ‘real world.’”
Gabriela Flores, University of Texas —El Paso
McGraw-Hill Connect® Learn Without Limits Connect is a teaching and learning platform that is proven to deliver better results for students and instructors.
Connect empowers students by continually adapting to deliver precisely what they need, when they need it, and how they need it, so your class time is more engaging and effective.
Connect Insight® Connect Insight is Connect’s new one-of-a- kind visual analytics dashboard—now available for both instructors and students—that provides at-a-glance information regarding student performance, which is immediately actionable. By presenting assignment, assessment, and topical performance results together with a time metric that is easily visible for aggregate or individual results, Connect Insight gives the user the ability to take a just-in-time approach to teaching and learning, which was never before available. Connect Insight presents data that empowers students and helps instructors improve class performance in a way that is efficient and effective.
73% of instructors who use Connect require it; instructor satisfaction increases by 28%
when Connect is required.
Students can view their results for any
Connect’s new, intuitive mobile interface gives students and instructors flexible and convenient, anytime–anywhere access to all components of the Connect platform.
Using Connect improves retention rates by 19.8%, passing rates by 12.7%, and exam scores by 9.1%.
SmartBook® Proven to help students improve grades and study more efficiently, SmartBook contains the same content within the print book, but actively tailors that content to the needs of the individual. SmartBook’s adaptive technology provides precise, personalized instruction on what the student should do next, guiding the student to master and remember key concepts, targeting gaps in knowledge and offering customized feedback, and driving the student toward comprehension and retention of the subject matter. Available on tablets, SmartBook puts learning at the student’s fingertips—anywhere, anytime.
Over 8 billion questions have been answered, making McGraw-Hill
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More students earn A’s and B’s when they use McGraw-Hill Education Adaptive products.
Adeline Boomgaard University of Phoenix Mark Burdsall University of Pittsburgh Ileene Chernoff University of Phoenix Donna Chlopak Montclair State University Amanda Christensen University of Cincinnati Elizabeth Cooper University of Rhode Island Dana M. Cosby Western Kentucky University Joe Daly Appalachian State University Caitlin A. Demsky Oakland University John DeSpagna Nassau Community College Ken Dunegan Cleveland State University Michelle H. Feller Weber State University Martin L. Fogelman SUNY Albany Charla S. Fraley Columbus State Community College Allison S. Gabriel University of Arizona Jane Whitney Gibson Nova Southeastern University Lydia Gilmore Columbus State Community College Simona Giorgi Boston College Nora Alicia González University of Phoenix Christina Goodell Florida State College at Jacksonville Meghan Griffin Daytona State College Samuel Hazen Tarleton State University Kim Hester Arkansas State University Lara Hobson Western Michigan University, Kalamazoo Brooks Holtom Georgetown University Jenni Hunt Southern Illinois University- Edwardsville (SIUE) Teresa Hutchinson University of Phoenix Kendra L. Ingram Texas A&M University- Commerce Stacey R. Kessler Montclair State University Anthony J. Kos Youngstown State University Christine L Krull IUPUI Mika Tatum Kusar Fort Lewis College Gregory P. Lucht University of Phoenix Douglas Mahony Lehigh University Jennifer Malarski Metropolitan State University Merrill A. Mayper University of Phoenix Dan Morrell Middle Tennessee State University Paula C. Morrow Iowa State University Robert Muliero University of Phoenix
We could not have completed this product without the help and support of a great number of people. It all began with the vision of our director, Michael Ablassmier. He assembled a fantastic team to help create a truly unique product and pushed us to create new and ap- plied features valued by the market. Among our first-rate team at McGraw-Hill, we want to acknowledge key contributors: Lead Product Developer Ann Torbert’s assistance was in- strumental in structuring the editorial process; Elisa Adams, content developer, and Lai T. Moy, senior product developer, helped us real- ize our vision and enhance that appeal; Nicole Young, senior market development manager, and Necco McKinley, marketing manager, for creative and proactive marketing; Mary Pow- ers, lead content project manager, and Danielle Clement, senior content project manager, led the core and Connect components through the production process; Jessica Cuevas, designer, and Debra Kubiak, design manager, worked with us to streamline the design and come up with a creative new cover concept; and Haley Burmeister, editorial coordinator, provided tre- mendous support behind the scenes.
We also want to thank Mindy West, Arizona State University, and Patrick Soleymani, George Mason University, for their work on the Teaching Resource Manual. Patrick also contributed in many other ways to help us achieve our vision. We are also grateful to Piper Editorial for their work on the TestBank. Deep gratitude goes to our Connect team: Denise Breaux Soignet, University of Arkan- sas, Fayetteville, and Frances McKee Ryan, University of Nevada, Reno, and to our student reviewers, Adam Tharenos and Andrew Vechi, both MBA candidates at the Crosby MBA Pro- gram at The University of Missouri.
We would like to acknowledge and thank the following instructors for providing feed- back to shape the second edition of this prod- uct. Special thanks goes to: Tim Basadur Concordia University Chicago B.D. Boardman University of Phoenix
Kendra Ingram, Texas A&M University Commerce Hank Karp, Hampton University Michael Kosicek, Indiana University of Pennsylvania Caroline Leffall, Bellevue College Fengru Li, Business School, University of Montana Katie Liljequist, Brigham Young University Douglas Mahony, Lehigh University Laura Martin, Midwestern State University Douglas McCabe, Georgetown University Lorianne Mitchell, East Tennessee State University Dan Morrell, Middle Tennessee State University Paula Morrow, Iowa State University Dave Mull, Columbia College, Columbia (MO) Floyd Ormsbee, Clarkson University Bradley P. Owens, State University of New York at Buffalo Jeff Peterson, Utah Valley State College Don Powell, University of North Texas Gregory R. Quinet, Southern Polytechnic State University Jude Rathburn, University of Wisconsin, Milwaukee Herb Ricardo, Indian River State College Joe Rode, Miami University, Oxford Matt Rodgers, The Ohio State University Kristie Rogers, University of Kansas Christopher Roussin, Suffolk University Gordon Schmidt, Indiana Purdue University, Ft. Wayne Holly Schroth, University of California Kenneth Solano, Northeastern University Patrick Soleymani, George Mason University Dan Spencer, University of Kansas Judy Tolan, University of Southern California Brian Usilaner, University of Maryland University College
Finally, we would like to thank our wives, Joyce and Donna. Thanks in large part to their love, moral support, and patience, this project was completed on schedule and it strengthened rather than strained a treasured possession— our friendship.
We hope you enjoy this textbook. Best wishes for happiness, health, and success!
Angelo Kinicki Mel Fugate
Daniel F. Nehring Morehead State University Jeananne Nicholls Slippery Rock University Dr. Floyd Ormsbee Clarkson University John Pepper The University of Kansas Samuel Rabinowitz Rutgers University-Camden Jude A. Rathburn University of Wisconsin- Milwaukee Alicia J. Revely Miami University Katherine Robberson Southern Illinois University- Edwardsville David Ruderman University of Colorado Denver Frances McKee Ryan University of Nevada, Reno Gordon Bruce Schmidt Indiana University- Purdue University Fort Wayne Dr. Marina Sebastijanovic University of Houston Ravi Shanmugam University of Kansas Richard G. Sims, Lead Faculty Chair Business University of Phoenix Dr. Atul Teckchandani California State University Fullerton Mussie T. Tessema Winona State University Linda Thiede Thomas Bellevue University Mary L. Tucker Ohio University Wellington Williams, Jr. University of Phoenix Robert M. Wolter IUPUI School of Engineering and Technology
We also gratefully acknowledge these individuals for their contributions to the first edition:
James Bishop, New Mexico State University, Las Cruces Brenda D. Bradford, Missouri Baptist University Chris Bresnahan, University of Southern California Holly Buttner, University of North Carolina, Greensboro Dean Cleavenger, University of Central Florida Matthew Cronin, George Mason University Kristen DeTienne, Brigham Young University Ken Dunegan, Cleveland State University Steven M. Elias, New Mexico State University Aimee Ellis, Ithaca College John D. Fuehrer, Baldwin Wallace University Cynthia Gilliand, University of Arizona Early Godfrey, Gardner Webb University Roy Lynn Godkin, Lamar University Connie Golden, Lakeland Community College Wayne Hochwarter, Florida State University Madison Holloway, Metropolitan State University of Denver
f c on
s PART ONE Individual Behavior 1
1 MAKING OB WORK FOR ME What Is OB and Why Is It Important? 2
2 VALUES AND ATTITUDES How Do They Affect Work-Related Outcomes? 44
3 INDIVIDUAL DIFFERENCES AND EMOTIONS How Does Who I Am Affect My Performance? 78
4 SOCIAL PERCEPTION AND MANAGING DIVERSITY Why Are These Topics Essential for Success? 122
5 FOUNDATIONS OF EMPLOYEE MOTIVATION How Can I Apply Motivation Theories? 160
6 PERFORMANCE MANAGEMENT How Can You Use Goals, Feedback, Rewards, and Positive Reinforcement to Boost Effectiveness? 200
7 POSITIVE ORGANIZATIONAL BEHAVIOR How Can I Flourish at School, Work, and Home? 250
PART TWO Groups 293
8 GROUPS AND TEAMS How Can Working with Others Increase Everybody’s Performance? 294
9 COMMUNICATION IN THE DIGITAL AGE How Can I Become a More Effective Communicator? 334
10 MANAGING CONFLICT AND NEGOTIATIONS How Can These Skills Give Me an Advantage? 376
11 DECISION MAKING AND CREATIVITY How Critical Is It to Master These Skills? 420
12 POWER, INFLUENCE, AND POLITICS How Can I Apply Power, Influence, and Politics to Increase My Effectiveness? 462
13 LEADERSHIP EFFECTIVENESS What Does It Take to Be Effective? 502
PART THREE Organizational Processes 543
14 ORGANIZATIONAL CULTURE, SOCIALIZATION, AND MENTORING How Can I Use These Concepts to Fit, Develop, and Perform? 544
15 ORGANIZATIONAL DESIGN, EFFECTIVENESS, AND INNOVATION How Can Understanding These Key Processes and Outcomes Help Me Succeed? 588
16 MANAGING CHANGE AND STRESS How Can You Apply OB and Show What You’ve Learned? 632
1 MAKING OB WORK FOR ME
What Is OB and Why Is It Important? 2
MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 2 WINNING AT WORK 3 WHAT’S AHEAD IN THIS CHAPTER 3
1.1 THE VALUE OF OB TO MY JOB AND CAREER 4 How OB Fits into My Curriculum and Influences My
Success 5 OB IN ACTION: Google Search: How Can We
Keep Talented Employees? 6 SELF-ASSESSMENT 1.1: How Strong Is My
Motivation to Manage? 7 Employers Want Both Hard and Soft Skills 8 How OB Fits into My Career 9
1.2 RIGHT VS. WRONG—ETHICS AND MY PERFORMANCE 12 Cheating 12 Ethical Lapses—Legality, Frequency, Causes, and
Solutions 13 OB IN ACTION: Wrong? Absolutely! Illegal?
Seemingly Not. 14 OB IN ACTION: The Whistle-Blower’s Dilemma 15 SELF-ASSESSMENT 1.2: Assessing My
Perspective on Ethics 19
1.3 APPLYING OB TO SOLVING PROBLEMS 21 A 3-Step Approach 21 Tools to Reinforce My Problem-Solving Skills 23 SELF-ASSESSMENT 1.3: Assessing My
Problem-Solving Potential 23
1.4 STRUCTURE AND RIGOR IN SOLVING PROBLEMS 24 The Person–Situation Distinction 24 PROBLEM-SOLVING APPLICATION: Technology: A
Situation Factor that Affects My Performance 25 Levels—Individual, Group/Team, and
Organization 27 Applying OB Concepts to Identify the Right
1.5 THE ORGANIZING FRAMEWORK FOR UNDERSTANDING AND APPLYING OB 28 A Basic Version of the Organizing Framework 28 Using the Organizing Framework for Problem
Solving 29 OB IN ACTION: Life Is Sweeter on Mars 30 Applied Approaches to Selecting a Solution 31 Basic Elements for Selecting an Effective
1.6 PREVIEW AND APPLICATION OF WHAT I WILL LEARN 33 The 3-Step Problem-Solving Approach 33 The Organizing Framework 33 Hypothetical Problem-Solving Scenario 35 Our Wishes for You 37
What Did I Learn? 38 PSAC: United Airlines: How Do We Get There from Here? 41 Legal/Ethical Challenge: To Tell or Not to Tell? 43
PART ONE Individual Behavior 1
3 INDIVIDUAL DIFFERENCES AND EMOTIONS
How Does Who I Am Affect My Performance? 77
MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 77 WINNING AT WORK 79 WHAT’S AHEAD IN THIS CHAPTER 79
3.1 THE DIFFERENCES MATTER 80
3.2 INTELLIGENCES: THERE IS MORE TO THE STORY THAN IQ 82 Intelligence Matters . . . And We Have More Than We Think 82 Practical Implications 85 OB IN ACTION: Smarts and Money 86
3.3 PERSONALITY, OB, AND MY EFFECTIVENESS 87 There Is More to Personality Than Liking and Fit 87 The Big Five Personality Dimensions 88 SELF-ASSESSMENT 3.1: What Is My Big Five Personality
Profile? 89 Hail the Introverts 89 Proactive Personality 89 OB IN ACTION: How to Thrive as an Introvert 90 SELF-ASSESSMENT 3.2: How Proactive Am I? 91 Personality and Performance 92 Personality Testing at Work 93 APPLYING OB: Acing Employee Tests 93 There Is No “Ideal Employee” Personality 94
3.4 CORE SELF-EVALUATIONS: HOW MY EFFICACY, ESTEEM, LOCUS, AND STABILITY AFFECT MY PERFORMANCE 95 Self-Efficacy—“I Can Do That” 96 Self-Esteem—“Look in the Mirror” 98
Locus of Control: Who’s Responsible—Me or External Factors? 99 Emotional Stability 100 OB IN ACTION: Alphabet’s Financial Chief Avoided Pitfalls that
Stymied Others 101 Three Practical Considerations for Core Self-Evaluations 102 SELF-ASSESSMENT 3.3: How Positively Do I See Myself? 103
3.5 THE VALUE OF BEING EMOTIONALLY INTELLIGENT 104 What Is Emotional Intelligence? 104 SELF-ASSESSMENT 3.4: What Is Your Level of Emotional
Intelligence? 105 PROBLEM-SOLVING APPLICATION: “Some days you’re the
fire hydrant and some days you’re the dog.” 106 Benefits of EI 107
3.6 UNDERSTAND EMOTIONS TO INFLUENCE PERFORMANCE 109 Emotions—We All Have Them, but What Are They? 109 Emotions as Positive or Negative Reactions to Goal
Achievement 110 APPLYING OB: Do You Procrastinate? Blame Your
Emotions! 110 Besides Positive and Negative, Think Past vs. Future 111 How Can I Manage My Negative Emotions at Work? 111 OB IN ACTION: The Good and Bad of Anger at Work 112
What Did I Learn? 114 PSAC: Amazon to Competition: We Will Crush You! Amazon to Employees: We Will Churn You! 117 Legal/Ethical Challenge: Companies Shift Smoking Bans to Smoker Ban 119
2 VALUES AND ATTITUDES
How Do They Affect Work-Related Outcomes? 44
MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 44 WINNING AT WORK 45 WHAT’S AHEAD IN THIS CHAPTER 45
2.1 PERSONAL VALUES 46 Schwartz’s Value Theory 46 SELF-ASSESSMENT 2.1: What Are My Core Values? 49 The Dynamics of Values 49
2.2 PERSONAL ATTITUDES AND THEIR IMPACT ON BEHAVIOR AND OUTCOMES 50 OB IN ACTION: Hospitality Industry Uses Attitude Surveys to
Target Causes of Turnover 51 Personal Attitudes: They Represent Your Consistent Beliefs and
Feelings about Specific Things 51 Attitudes Affect Behavior via Intentions 53 PROBLEM-SOLVING APPLICATION: Southwest Pilots Stage
an Informational Picket. What Should Management Do? 54
2.3 KEY WORKPLACE ATTITUDES 56 Organizational Commitment 56 Employee Engagement 58 SELF-ASSESSMENT 2.2: To What Extent Am I Engaged in My
OB IN ACTION: Companies Foster Employee Engagement in Different Ways 60
Perceived Organizational Support 61
2.4 THE CAUSES OF JOB SATISFACTION 62 SELF-ASSESSMENT 2.3: How Satisfied Am I with My Present
Job? 62 At a Glance: Five Predominant Models of Job Satisfaction 63 A Shorter Walk to Work 64
2.5 MAJOR CORRELATES AND CONSEQUENCES OF JOB SATISFACTION 66 Attitudinal Outcomes of Job Satisfaction 66 PROBLEM-SOLVING APPLICATION: What to Do About
Bullying 67 Behavioral Outcomes of Job Satisfaction 68 Organizational-Level Outcomes of Job Satisfaction 71
What Did I Learn? 72 PSAC: Employee Attitudes and Turnover Are Issues at Yahoo! 75 Legal/Ethical Challenge: What Should Management Do About an Abusive Supervisor? 77
5 FOUNDATIONS OF EMPLOYEE MOTIVATION
How Can I Apply Motivation Theories? 160
MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 160 WINNING AT WORK 161 WHAT’S AHEAD IN THIS CHAPTER 161
5.1 THE WHAT AND WHY OF MOTIVATION 162 Motivation: What Is It? 162 The Two Fundamental Perspectives on Motivation:
An Overview 163
5.2 CONTENT THEORIES OF MOTIVATION 164 McGregor’s Theory X and Theory Y 164 Maslow’s Need Hierarchy Theory: Five Levels of Needs 164 Acquired Needs Theory: Achievement, Affiliation,
and Power 165 SELF-ASSESSMENT 5.1: Assessing Your Acquired Needs? 166 Self-Determination Theory: Competence, Autonomy, and
Relatedness 168 Herzberg’s Motivator-Hygiene Theory: Two Ways to Improve
Satisfaction 169 PROBLEM-SOLVING APPLICATION: What’s Going on at the
Arizona Department of Child Safety 171
5.3 PROCESS THEORIES OF MOTIVATION 173 Equity/Justice Theory: Am I Being Treated Fairly? 173 SELF-ASSESSMENT 5.2: Measuring Perceived Interpersonal
Treatment 176 Expectancy Theory: Does My Effort Lead to Desired
4 SOCIAL PERCEPTION AND MANAGING DIVERSITY
Why Are These Topics Essential for Success? 122
MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 122 WINNING AT WORK 124 WHAT’S AHEAD IN THIS CHAPTER 124
4.1 PERSON PERCEPTION 125 A Model of Person Perception 125 OB IN ACTION: How Perception of Apologies Differs in the
United States and Japan 128 Managerial Implications of Person Perception 129
4.2 STEREOTYPES 131 Stereotype Formation and Maintenance 131 Managerial Challenges and Recommendations 132
4.3 CAUSAL ATTRIBUTIONS 133 Kelley’s Model of Attribution 133 Attributional Tendencies 135 Managerial Application and Implications 135
4.4 DEFINING AND MANAGING DIVERSITY 136 Layers of Diversity 136 Affirmative Action vs. Managing Diversity 138
4.5 BUILDING THE BUSINESS CASE FOR MANAGING DIVERSITY 140 Business Rationale 140 OB IN ACTION: Companies Develop Products to Fit the
Laundry Habits of Men 140
Trends in Workforce Diversity 142 SELF-ASSESSMENT 4.1: What Are Your Attitudes Toward
Working with Older Employees 145
4.6 BARRIERS AND CHALLENGES TO MANAGING DIVERSITY 146 SELF-ASSESSMENT 4.2: Assessing an Organization’s Diversity
4.7 ORGANIZATIONAL PRACTICES USED TO EFFECTIVELY MANAGE DIVERSITY 149 Framework of Options 149 How Companies Are Responding to the Challenges of
Diversity 150 PROBLEM-SOLVING APPLICATION: 64-Year-Old Male
Sues Staples for Wrongful Termination and Age Discrimination 152
SELF-ASSESSMENT 4.3: How Does My Diversity Profile Affect My Relationships with Other People? 153
What Did I Learn? 154 PSAC: White, Male, and Asian: The Diversity Profile of Technology Companies 157 Legal/Ethical Challenge: Swastikas and Neonatal Care 159
PROBLEM-SOLVING APPLICATION: Corporate Boards Decide to Lower the Instrumentalities between CEO Performance and Pay 180
PROBLEM-SOLVING APPLICATION: A High School Principal Uses Principles of Expectancy Theory to Motivate Students 182
Goal-Setting Theory: How Can I Harness the Power of Goal Setting? 183
5.4 MOTIVATING EMPLOYEES THROUGH JOB DESIGN 185 Top-Down Approaches—Management Designs Your Job 186 OB IN ACTION: Job Swapping Is the Latest Application of Job
Rotation 187 Bottom-Up Approaches—You Design Your Own Job 190 SELF-ASSESSMENT 5.3: To What Extent Have I Used Job
Crafting? 191 Idiosyncratic Deals (I-Deals)—You Negotiate the Design
of Your Job 192 SELF-ASSESSMENT 5.4: Creating an I-Deal 192
What Did I Learn? 193 PSAC: Dan Price, CEO of Gravity Payments, Established a Minimum Salary of $70,000 for All Employees 196 Legal/Ethical Challenge: Should Senior Executives Receive Bonuses for Navigating a Company through Bankruptcy 198
7 POSITIVE ORGANIZATIONAL BEHAVIOR
How Can I Flourish at School, Work, and Home? 250
MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 250 WINNING AT WORK 252 WHAT’S AHEAD IN THIS CHAPTER 252
7.1 THE VALUE OF POSITIVE ORGANIZATIONAL BEHAVIOR 253 Two Scenarios—Which Do You Prefer? 253 A Framework of Positivity 254 The Benefits of Positive OB Extend beyond Good
Performance 255 PROBLEM-SOLVING APPLICATION: Whole Foods Market:
More than Profits and More than Organics 259
7.2 THE POWER OF POSITIVE EMOTIONS 260 Beyond Happy vs. Sad 260 Positive Emotions Are Contagious 261 How Much Positivity Is Enough? 263 SELF-ASSESSMENT 7.1: Learn Your Positivity Ratio? 265
7.3 FOSTERING MINDFULNESS 266 Mindlessness vs. Mindfulness 266 OB IN ACTION: Does the Use of Headphones Help Achieve
Mindfulness? 267 Inhibitors of Mindfulness 268 Benefits of Mindfulness 269
6 PERFORMANCE MANAGEMENT
How Can You Use Goals, Feedback, Rewards, and Positive Reinforcement to Boost Effectiveness? 200
MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 200 WINNING AT WORK 202 WHAT’S AHEAD IN THIS CHAPTER 202
6.1 PERFORMANCE MANAGEMENT PROCESSES 203 Effective Performance Management 203 Common Uses of Performance Management 204 PROBLEM-SOLVING APPLICATION: How Much Would You
Pay Fannie and Freddie? 205 What Goes Wrong with Performance Management 205 The Importance of Management and Leadership 206 OB IN ACTION: The Deloitte Way: “Snapshots” and
6.2 STEP 1: DEFINE PERFORMANCE—EXPECTATIONS AND SETTING GOALS 209 Do You Want to Perform or Learn? 209 Managing the Goal-Setting Process 210 Contingency Approach to Defining Performance and
Setting Goals 213
6.3 STEP 2: PERFORMANCE MONITORING AND EVALUATION 214 Monitoring Performance—Measure Goals Appropriately and
Accurately 215 OB IN ACTION: The Challenges Grow as Employee Monitoring
Becomes More Sophisticated and Pervasive 215 Evaluating Performance 217
6.4 STEP 3: PERFORMANCE REVIEW, FEEDBACK, AND COACHING 219 What Effective Feedback Is . . . and Is Not 219 The Value of Feedback 220 If Feedback Is So Helpful, Why Don’t We Get and Give More? 220 Two Functions of Feedback 221 Important Sources of Feedback—Including Those Often
Overlooked 221 OB IN ACTION: How Do You Spell Feedback and
Self-Improvement? Z-A-P-P-O-S! 223
Who Seeks Feedback, Who Doesn’t, and Does It Matter? 224 Your Perceptions Matter 225 SELF-ASSESSMENT 6.1: What Is My Desire for Performance
Feedback? 227 Feedback Do’s and Don’ts 227 Today’s Trends in Feedback 227 Coaching—Turning Feedback into Change 228
6.5 STEP 4: PROVIDING REWARDS AND OTHER CONSEQUENCES 229 Key Factors in Organizational Rewards 229 Types of Rewards 229 SELF-ASSESSMENT 6.2: What Rewards Do I Value
Most? 230 Distribution Criteria 231 Desired Outcomes of the Reward System 231 Be Sure You Get the Outcomes You Desire 232 Total and Alternative Rewards 233 OB IN ACTION: Foosball? No Thanks. Stock that Matters?
Sign Me Up! 234 Why Rewards Often Fail and How to Boost Their
Effectiveness 234 PROBLEM-SOLVING APPLICATION: Garbage . . . Not Just the
Work but the Outcomes Too 235 Pay for Performance 236 Making Pay for Performance Work 237
6.6 REINFORCEMENT AND CONSEQUENCES 238 The Law of Effect—Linking Consequences and Behaviors 238 Using Reinforcement to Condition Behavior 238 Contingent Consequences 239 Positive Reinforcement Schedules 240 Work Organizations Typically Rely on the Weakest Schedule 242
What Did I Learn? 244 PSAC: Why Are Some Companies Yanking Forced Ranking? 247 Legal/Ethical Challenge: Fined Billions, but Still Admired and Handsomely Rewarded 249
OB IN ACTION: Applications of Mindfulness 270 SELF-ASSESSMENT 7.2: What Is My Level of Mindfulness? 271 Practicing Mindfulness 271
7.4 DEVELOPING PSYCHOLOGICAL CAPITAL AND SIGNATURE STRENGTHS 273 Hope = Willpower + “Waypower” 273 Efficacy 274 Resilience 274 Optimism 275 OB IN ACTION: Life Is Good . . . Spread the Power of
Optimism 275 How I Can Develop My PsyCap 276 SELF-ASSESSMENT 7.3: What Is My Level of PsyCap? 277 Signature Strengths 277 SELF-ASSESSMENT 7.4: What Are My Signature Strengths? 278
7.5 CREATING A CLIMATE THAT FOSTERS POSITIVE ORGANIZATIONAL BEHAVIOR 279 Organizational Values 279 Organizational Practices 280 Virtuous Leadership 281
7.6 FLOURISHING: THE DESTINATION OF POSITIVE ORGANIZATIONAL BEHAVIOR 282 OB IN ACTION: Values-Based Investing
at Parnassus Fund 282 Positive Emotions 283 OB IN ACTION: Pirch Spreads Joy 284 Engagement 285 Relationships 285 Meaningfulness 285 Achievement 286
What Did I Learn? 287 PSAC: Does Forever 21 Foster Positivity? 290 Legal/Ethical Challenge: Does GPS Tracking of Employee Actions Foster a Positive Work Environment? 292
8 GROUPS AND TEAMS
How Can Working with Others Increase Everybody’s Performance? 294
MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 294 WINNING AT WORK 296 FOR YOU: WHAT’S AHEAD IN THIS CHAPTER 296
8.1 GROUP CHARACTERISTICS 297 Formal and Informal Groups 298 Roles and Norms: The Social Building Blocks for Group and
Organizational Behavior 299 SELF-ASSESSMENT 8.1: Group and Team Role Preference
8.2 THE GROUP DEVELOPMENT PROCESS 304 Tuckman’s Five-Stage Model of Group Development 304 Punctuated Equilibrium 306
8.3 TEAMS AND THE POWER OF COMMON PURPOSE 307 A Team Is More Than Just a Group 307 SELF-ASSESSMENT 8.2: Is This a Mature Work Group or a
Team? 308 OB IN ACTION: Team Building Is an Important Part of Talent
Management 308 Being a Team Player Instead of a Free Rider 309 SELF-ASSESSMENT 8.3: Evaluate Your Team Member
Effectiveness 310 Types of Teams 311
OB IN ACTION: The Art of the Self-Managing Team 312
Virtual Teams 313 Team Interdependence 315
8.4 TRUST BUILDING AND REPAIR—ESSENTIAL TOOLS FOR SUCCESS 317 Three Forms of Trust 318 Building Trust 319 SELF-ASSESSMENT 8.4: How Much Do You Trust
Another? 319 Repairing Trust 320
8.5 KEYS TO TEAM EFFECTIVENESS 321 Characteristics of High-Performing Teams 321 The 3 Cs of Effective Teams 321 Collaboration and Team Rewards 323 PROBLEM-SOLVING APPLICATION: Together,
Hospitals Combat a Common Foe 324 OB IN ACTION: Exemplary Teamwork at NASA 325
What Did I Learn? 327 PSPAC: Optimizing Team Performance at Google 320 Legal/Ethical Challenge: When Would You Fire the Coach? The President? 332
PART TWO Groups 293
10 MANAGING CONFLICT AND NEGOTIATIONS
How Can These Skills Give Me an Advantage? 376
MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 376 WINNING AT WORK 378 WHAT’S AHEAD IN THIS CHAPTER 378
10.1 A CONTEMPORARY VIEW OF CONFLICT 379 SELF-ASSESSMENT 10.1: Interpersonal Conflict Tendencies 379 Conflict Is Everywhere and It Matters 379 A Modern View of Conflict 380 A Conflict Continuum 380 Functional vs. Dysfunctional Conflict 380 Common Causes of Conflict 381 Escalation of Conflict 381 OB IN ACTION: First a Question, Then a Major Altercation 382 Why People Avoid Conflict 382 Desired Outcomes of Conflict Management 384
10.2 CONVENTIONAL FORMS OF CONFLICT 385 Personality Conflicts 385 How to Deal with Personality Conflicts 386 OB IN ACTION: The CEO Who Planned a “Food Fight” 386 PROBLEM-SOLVING APPLICATION: Butt Your Heads Together
and Fix the Problem 387 Intergroup Conflict 388 How to Handle Intergroup Conflict 389 SELF-ASSESSMENT 10.2: Psychological Safety Climate 391
10.3 FORMS OF CONFLICT INTENSIFIED BY TECHNOLOGY 392 Work–Family Conflict 392 SELF-ASSESSMENT 10.3: School–Non-School Conflict 393 OB IN ACTION: At United Shore Financial—Give Me Only 40 or
You’re Fired 394 Incivility—Treating Others Poorly Has Real Costs 396 SELF-ASSESSMENT 10.4: Bullying Scale—Target and
10.4 EFFECTIVELY MANAGING CONFLICT 400 Programming Functional Conflict 400 Conflict-Handling Styles 402 SELF-ASSESSMENT 10.5: Preferred Conflict-Handling
Style 403 Third-Party Interventions: Alternative Dispute Resolution 405
10.5 NEGOTIATION 407 Two Basic Types of Negotiation 407 Emotions and Negotiations 409 OB IN ACTION: Take It from an FBI International Hostage
Negotiator 410 Ethics and Negotiations 411
What Did I Learn? 413 PSAC: What About McDonald’s Other Customers? 416 Legal/Ethical Challenge: Arbitration and a Snowball’s Chance 418
9 COMMUNICATION IN THE DIGITAL AGE
How Can I Become a More Effective Communicator? 334
MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 334 WINNING AT WORK 336 WHAT’S AHEAD IN THIS CHAPTER 336
9.1 BASIC DIMENSIONS OF THE COMMUNICATION PROCESS 337 Defining Communication 337 How the Communication Process Works 338 OB IN ACTION: The Priceline Group Works Hard to Avoid
Noise with Its Global Customers 339 Selecting the Right Medium 340
9.2 COMMUNICATION COMPETENCE 342 SELF-ASSESSMENT 9.1: Assessing Your Communication
Competence 342 Sources of Nonverbal Communication 342 Listening 344 SELF-ASSESSMENT 9.2: Assessing Your Listening Style 345 Nondefensive Communication 345 Connecting with Others via Empathy 347 OB IN ACTION: Ford Designs Products by Using Empathy 347
9.3 GENDER, GENERATIONS, AND COMMUNICATION 348 Communication Patterns between Women and Men 348 Generational Differences in Communication 349 Improving Communications between the Sexes and
9.4 SOCIAL MEDIA AND OB 351 Social Media and Increased Productivity 352 OB IN ACTION: Expanding Organizational Boundaries with
Crowdsourcing at GE, Lego, and YOU 354 Costs of Social Media 355 PROBLEM-SOLVING APPLICATION: A Very Expensive
Fantasy 355 Make E-mail Your Friend, Not Your Foe 356 Social Media Concerns and Remedies—What Companies and
You Can Do 357 SELF-ASSESSMENT 9.3: Assessing Social Media
Readiness 358 OB IN ACTION: Coca-Cola’s Online Social Media
9.5 COMMUNICATION SKILLS TO BOOST YOUR EFFECTIVENESS 363 Presenting—Do You Give Reports or Do You Tell Stories? 363 Crucial Conversations 366 Managing Up 368
What Did I Learn? 370 PSAC: What Can You Say About Your Employer on Social Media? Whatever You Want, Maybe 373 Legal/Ethical Challenge: Should Employers Monitor Employees’ Social Media Activity? 375
11 DECISION MAKING AND CREATIVITY
How Critical Is It to Master These Skills? 420
MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 420 WINNING AT WORK 422 WHAT’S AHEAD IN THIS CHAPTER 422
11.1 RATIONAL AND NONRATIONAL MODELS OF DECISION MAKING 423 Two Ways of Thinking 423 Rational Decision Making: Managers Make Logical and Optimal
Decisions 424 OB IN ACTION: Northwestern University Helps Students Deal
with Bounded Rationality while Solving Problems 426 Nonrational Models of Decision Making: Decision Making Does
Not Follow an Orderly Process 427 SELF-ASSESSMENT 11.1: Assessing Your Intuition 430
11.2 DECISION-MAKING BIASES: RULES OF THUMB OR “HEURISTICS” 431 PROBLEM-SOLVING APPLICATION: Heuristics Partly to Blame
for BP Oil Spill 432
11.3 EVIDENCE-BASED DECISION MAKING 435 Using Evidence to Make Decisions 436 Big Data: The Next Frontier in Evidence-Based
Decision Making 437 PROBLEM-SOLVING APPLICATION: Kroger Uses Big Data
to Improve Customer Service and Profits 438
11.4 FOUR DECISION-MAKING STYLES 439 Value Orientation and Tolerance for Ambiguity 439 The Directive Style: Action-Oriented Decision Makers Who
Focus on Facts 439 The Analytical Style: Careful and Slow Decision Makers Who
Like Lots of Information 440 The Conceptual Style: Intuitive Decision Makers Who Involve
Others in Long-Term Thinking 441
The Behavioral Style: Highly People-Oriented Decision Makers 441
Which Style Are You? 441 SELF-ASSESSMENT 11.2: What Is My Decision-Making
11.5 A ROAD MAP TO ETHICAL DECISION MAKING 442
11.6 GROUP DECISION MAKING 444 Advantages and Disadvantages of Group Decision
Making 445 Groupthink 445 SELF-ASSESSMENT 11.3: Assessing Participation in Group
Decision Making 447 Practical Contingency Recommendations about Group Decision
Making 447 Reaching Consensus: The Goal of Group Problem-Solving
Techniques 447 Practical Problem-Solving Techniques 447 PROBLEM-SOLVING APPLICATION: Rosemont Center
Addresses Employee-Related Issues 449
11.7 CREATIVITY 450 A Model of Creativity 450 SELF-ASSESSMENT 11.4: Assessing Climate for
Creativity 452 Practical Recommendations for Increasing Creativity 453
What Did I Learn? 454 PSAC: Don’t Drink the Water in Flint, Michigan 458 Legal/Ethical Challenge: Should Apple Comply with the US Government’s Requests to Unlock iPhones? 460
12 POWER, INFLUENCE, AND POLITICS
How Can I Apply Power, Influence, and Politics to Increase My Effectiveness? 462
MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 462 WINNING AT WORK 464 WHAT’S AHEAD IN THIS CHAPTER 464
12.1 POWER AND ITS BASIC FORMS 465 Five Bases of Power 465 OB IN ACTION: Former Government Officials Wielding
Influence at Consulting Group 467 SELF-ASSESSMENT 12.1: What Kind of Power Do I
Prefer? 468 Position vs. Personal Power 468 Power, but for What Purpose? 469
12.2 POWER SHARING AND EMPOWERMENT 472 Structural Empowerment 472 Psychological Empowerment 474 How to Empower Individuals, Teams, and Organizations 475 PROBLEM-SOLVING APPLICATION: Empowering a Team of
Your Peers 476
12.3 EFFECTIVELY INFLUENCING OTHERS 477 Common Influence Tactics 477 SELF-ASSESSMENT 12.2: Which Influence Tactics Do I
Use? 478 Match Tactics to Influence Outcomes 478 Influence in Virtual Teams 479
13 LEADERSHIP EFFECTIVENESS
What Does It Take to Be Effective? 502
MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 502 WINNING AT WORK 504 WHAT’S AHEAD IN THIS CHAPTER 504
13.1 MAKING SENSE OF LEADERSHIP THEORIES 505 An Integrated Model of Leadership 506 What Is the Difference between Leading and Managing? 507 SELF-ASSESSMENT 13.1: Assessing Your Readiness to
Assume a Leadership Role? 507
13.2 TRAIT THEORIES: DO LEADERS POSSESS UNIQUE TRAITS AND PERSONAL CHARACTERISTICS? 508 What Core Traits Do Leaders Possess? 508 What Role Does Emotional Intelligence Play in Leadership
Effectiveness? 509 Do Women and Men Display the Same Leadership
Traits? 510 How Important Are Knowledge and Skills? 510 Do Perceptions Matter? 510 What Are the Take-Aways from Trait Theory? 511 OB IN ACTION: MasterCard and InterContinental Hotels Group
(IHG) Develop Employees’ “Global Mind-set” 512
13.3 BEHAVIORAL THEORIES: WHICH LEADER BEHAVIORS DRIVE EFFECTIVENESS? 513 Task-Oriented Leader Behavior 513 OB IN ACTION: Nick Saban Uses Task-Oriented Leadership to
Achieve National Championships in Football 514 Relationship-Oriented Leader Behavior 515 SELF-ASSESSMENT 13.2: Assessing Your Task- and
Relationship-Oriented Leadership Behavior 515 SELF-ASSESSMENT 13.3: Assessing Your Servant
Orientation 517 Passive Leadership 518
OB IN ACTION: Passive Leadership at Petrobas 519 What Are the Take-Aways from Behavioral Theory? 519
13.4 CONTINGENCY THEORIES: DOES THE EFFECTIVENESS OF LEADERSHIP DEPEND ON THE SITUATION? 520 Fiedler’s Contingency Model 520 PROBLEM-SOLVING APPLICATION: Bill Marriott Selects Arne
Sorenson to Be CEO over His Son 522 House’s Path-Goal Theory 523 Applying Contingency Theories 526
13.5 TRANSFORMATIONAL LEADERSHIP: HOW DO LEADERS TRANSFORM EMPLOYEES’ MOTIVES? 527 A Model of Transformational Leadership 527 How Does Transformational Leadership Work? 529 SELF-ASSESSMENT 13.4: Assessing Your Boss’s
Transformational Leadership? 530
13.6 ADDITIONAL PERSPECTIVES ON LEADERSHIP 531 The Leader-Member Exchange (LMX) Model
of Leadership 531 SELF-ASSESSMENT 13.5: Assessing Your Leader-Member
Exchange 533 The Power of Humility 534 The Role of Followers in the Leadership Process 534
What Did I Learn? 536 PSAC: The University of Virginia President Leads through Multiple Crises 540 Legal/Ethical Challenge: Martin Shkreli, former CEO of Turing Pharmaceuticals, Exorbitantly Raises the Price of a Much-Needed Drug 542
Six Principles of Persuasion 480 Apply Your Knowledge 481
12.4 POLITICAL TACTICS AND HOW TO USE THEM 482 Organizational Politics—The Good and the Bad 482 SELF-ASSESSMENT 12.3: How Political Am I? 482 Major Causes of Political Behavior 483 Frequently Used Political Tactics 484 Blame and Politics 485 Three Levels of Political Action 486 Using Politics to Your Advantage 487
12.5 IMPRESSION MANAGEMENT 489 What Is Impression Management? 489 Good Impressions 489
OB IN ACTION: Impression Management, Venture Capital Style 491
SELF-ASSESSMENT 12.4: Your Impression Management—How and Who 492
Impression Management and Job Interviews 492 How to Create Bad Impressions 493 Ethics and Impression Management 494 Apologies 494
What Did I Learn? 496 PSAC: Comcast’s Influence Went Only So Far 499 Legal/Ethical Challenge: Sharapova, You’re Out. But Not Woods, Not Vick, Not Armstrong, Not Bryant, Not . . . 500
14 ORGANIZATIONAL CULTURE, SOCIALIZATION, AND MENTORING
How Can I Use These Concepts to Fit, Develop, and Perform? 544
MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 544 WINNING AT WORK 546 WHAT’S AHEAD IN THIS CHAPTER 546
14.1 THE FOUNDATION OF ORGANIZATIONAL CULTURE: UNDERSTANDING ITS DRIVERS AND FUNCTIONS 547 Defining Culture and Exploring Its Impact 547 The Three Levels of Organizational Culture 548 OB IN ACTION: Unilever Promotes a Sustainability
Culture 550 The Four Functions of Organizational Culture 551
14.2 THE IMPACT OF ORGANIZATIONAL CULTURE TYPES ON OUTCOMES 554 Identifying Culture Types with the Competing Values
Framework 554 PROBLEM-SOLVING APPLICATION: Dabbawalas Rely on a
Hierarchical Culture to Efficiently Deliver Food 558 OB IN ACTION: Activision Blizzard Integrates Clan and
Adhocracy Cultures 559 SELF-ASSESSMENT 14.1: What Is the Organizational Culture
at My Current Employer? 561 Outcomes Associated with Organizational Culture 561 Subcultures Matter 562
14.3 MECHANISMS OR LEVERS FOR CULTURE CHANGE 563 12 Mechanisms or Levers for Creating Culture Change 564
OB IN ACTION: Salo LLC Uses Rites and Rituals to Embed a Clan and Market Culture 568
SELF-ASSESSMENT 14.2: What Type of Organizational Culture Do I Prefer? 570
14.4 EMBEDDING ORGANIZATIONAL CULTURE THROUGH THE SOCIALIZATION PROCESS 571 A Three-Phase Model of Organizational Socialization 571 OB IN ACTION: Companies Use Different Approaches to
Onboard Employees 573 SELF-ASSESSMENT 14.3: Have You Been Adequately
Socialized? 575 Practical Application of Socialization Research 575
14.5 EMBEDDING ORGANIZATIONAL CULTURE THROUGH MENTORING 578 Functions of Mentoring 578 Human and Social Capital Enhance the Benefits of
Mentoring 579 Personal Implications 581 SELF-ASSESSMENT 14.4: Assessing My Level of
What Did I Learn? 582 PSAC: Zenefits Experiences the Pain of Growth 585 Legal/Ethical Challenge: Should the Citadel Change Its Socialization Practices? 587
PART THREE Organizational Processes 543
15 ORGANIZATIONAL DESIGN, EFFECTIVENESS, AND INNOVATION
How Can Understanding These Key Processes and Outcomes Help Me Succeed? 588
MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 588 WINNING AT WORK 590 WHAT’S AHEAD IN THIS CHAPTER 590
15.1 THE FOUNDATION OF AN ORGANIZATION 591 What Is an Organization? 591 Organization Charts 592 An Open-System Perspective of Organizations 593 Learning Organizations 594 SELF-ASSESSMENT 15.1: Are You Working for a Learning
15.2 ORGANIZATIONAL DESIGN 598 Three Categories 599 Seven Types of Organizational Structures 600 OB IN ACTION: W.L. Gore & Associates Operates with a
Horizontal Design 601 SELF-ASSESSMENT 15.2: What Is Your Preference for
Telecommuting? 602 PROBLEM-SOLVING APPLICATION: Freelancers Use the
Internet to Obtain Work 603
16 MANAGING CHANGE AND STRESS
How Can You Apply OB and Show What You’ve Learned? 632
MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 632 WINNING AT WORK 634 WHAT’S AHEAD IN THIS CHAPTER 634
16.1 FORCES FOR CHANGE 635 SELF-ASSESSMENT 16.1: Assessing Your Attitudes toward
Change at Work 635 External Forces 635 Internal Forces 639 OB IN ACTION: Conflicts and Solutions at iPhone
16.2 TYPES AND MODELS OF CHANGE 642 Three General Types of Change 642 OB IN ACTION: Cisco Thrives on (Radical) Innovation 643 Common Elements of Change 644 Lewin’s Change Model 644 OB IN ACTION: Unfreezing at Facebook 645 A Systems Model of Change 646 SELF-ASSESSMENT 16.2: What Is Your Readiness for
Change? 649 Kotter’s Eight-Stage Organizational Change Process 650 Creating Change through Organization Development (OD) 650
16.3 UNDERSTANDING RESISTANCE TO CHANGE 652 A Dynamic View of Resistance 652 Causes of Resistance to Change 653 OB IN ACTION: Should a New Leader Clean House? 655
16.4 THE GOOD AND THE BAD OF STRESS 656 Stress—Good and Bad 656 A Model of Occupational Stress 656 OB IN ACTION: Terminal Stress on Wall Street 658 OB IN ACTION: Barrie D’Rozario DiLorenzo (BD’D) Takes
Advertising, Marketing, and Employee Stress Very Seriously! 661
16.5 EFFECTIVE CHANGE AND STRESS MANAGEMENT 662 Applying the Systems Model of Change—Strategic Planning and
Diagnosis 662 PROBLEM-SOLVING APPLICATION: Emergency in the
Emergency Department 662 How to Overcome Resistance to Change 663 How to Manage Stress 665 Pulling It All Together—Change Management Tips for
Managers 667 Parting Words for Change and OB 668
What Did I Learn? 669 PSAC: Best Buy ... The Best House on a Bad Block 672 Legal/Ethical Challenge: Can Employers Ethically Force You to Change and Be Healthy? 673
ENDNOTES CN1 GLOSSARY/SUBJECT INDEX I-1 NAMES INDEX I-21 COMPANY INDEX I-24
15.3 CONTINGENCY DESIGN AND INTERNAL ALIGNMENT 607 Contingency Factors 607 PROBLEM-SOLVING APPLICATION: Whole Foods
Is Moving from an Organic to a Mechanistic Structure 608
Internal Alignment 609 What Does This Mean to Me? 610
15.4 ASSESSING ORGANIZATIONAL EFFECTIVENESS 611 The Balanced Scorecard: A Dashboard-Based
Approach to Measuring Organizational Effectiveness 611
SELF-ASSESSMENT 15.3: Assessing the Learning and Growth Perspective of the Balanced Scorecard 614
Strategy Mapping: Visual Representation of the Path to Organizational Effectiveness 614
15.5 ORGANIZATIONAL INNOVATION 616 Approaches toward Innovation 616 An Innovation System: The Supporting Forces for
Innovation 618 PROLEM-SOLVING APPLICATION: Extended Stay America
Tries to Increase Innovation 620 SELF-ASSESSMENT 15.4: How Innovative Is the
Organizational Culture? 620 OB IN ACTION: Design Thinking Your Way to Innovative
Solutions 621 Office Design 623
What Did I Learn? 625 PSAC: Zappos CEO Asks Employees to Commit to Teal, or Leave 628 Legal/Ethical Challenge: Does Tax-Exempt Status for Universities Make Them Good Organizational Citizens? 630
1 Major Topics I’ll Learn and Questions I Should Be Able to Answer
1.1 The Value of OB to My Job and Career MAJOR QUESTION: How can I use knowledge of OB to enhance my job performance and career?
1.2 Right vs. Wrong—Ethics and My Performance MAJOR QUESTION: Why do people engage in unethical behavior, even unwittingly, and what lessons can I learn from that?
1.3 Applying OB to Solving Problems MAJOR QUESTION: How can I apply OB in practical ways to increase my effectiveness?
1.4 Structure and Rigor in Solving Problems MAJOR QUESTION: How could I explain to a fellow student the practical relevance and power of OB to help solve problems?
1.5 The Organizing Framework for Understanding and Applying OB MAJOR QUESTION: How can the Organizing Framework help me understand and apply OB knowledge to solve problems?
1.6 Preview and Application of What I Will Learn MAJOR QUESTION: How can I use my knowledge about OB to help me achieve professional and personal effectiveness?
What Is OB and Why Is It Important?
MAKING OB WORK FOR ME
In this chapter you’ll learn that the study and practice of OB often organizes the work- place into three levels—the individual, the group or team, and the organization. Thus we’ve structured this book the same way—Part One is devoted to individual-level phe- nomena ( job satisfaction), Part Two to groups and teams (team cohesiveness), and Part Three to the organizational level (innovation). Make sure you read the final sec- tion of Chapter 1 for a preview of the many concepts you’ll learn in the book. You’ll also find a summary and application of the Organizing Framework for Understanding and Applying OB and the 3-Step Problem-Solving Approach. These are fundamental tools we created not only to help you learn more effectively, but also to help you apply and realize the true value of OB for you personally.
Winning at Work Your Future
What’s Ahead in This Chapter You’ll learn how OB can drive your job and career suc- cess. You’ll grasp the difference between hard and soft skills and the value of developing both, as well as the importance of self-awareness. We’ll show that ethics are integral to long-term individual and organizational suc- cess, and we’ll introduce a problem-solving approach you can use in a wide variety of situations at school, at work, and in life. But what really powers this book is our Organizing Framework for Understanding and Applying OB, which we introduce mid-chapter. This framework will help you organize and apply OB concepts and tools as you learn them. To show you the power of the Orga- nizing Framework, we conclude the chapter with a pre- view of the many concepts, theories, and tools you will learn. We then show you how to apply this knowledge using our 3-Step Problem-Solving Approach. We think you’ll be intrigued by this glimpse into all that you will learn in this book and course. Let’s get started!
critical thinking, ethical decision making, and problem solving. However, no more than 37 percent of employers thought students were well prepared in any of these skills, though many students believe they are (especially in criti- cal thinking and oral communication).2 This skill gap has motivated companies such as Mindtree, a digital solutions firm, to build its own $20 million learning center. Krishnan KS, head of culture and competence, said the center is in- tended to teach its engineers “21st century skills: commu- nication, collaboration, cooperation, management, decision making, and problem solving.”3
Employers Want Problem Solving and Critical Thinking Regardless of your area of study, arguably the greatest benefit of your education is developing problem-solving and critical-thinking skills. A recent National Association of Colleges and Employers (NACE) survey revealed the three skills most valued by employers: critical thinking, problem solving, and teamwork.4 Building your skills in these areas and others is the overarching goal of this book.
Imagine you are about to walk in the door and start your first full-time job. It’s the job you’ve always wanted. Or, if you are currently employed, imagine you’ve finally won the promotion you’ve worked so hard for, and you’re about to enter your new office, new department, or new work area. Either case is full of excitement—your professional life has so much promise!
Now take stock of your existing knowledge, skills, expe- riences, and other qualities. Even if these are well devel- oped at this point in your career, wouldn’t you want to give yourself an even greater advantage and translate your tal- ent into better performance and opportunities? Of course you would, and this is why we study OB.
Knowledge Is Not Enough Knowledge alone does not solve business problems. For de- cades, managers believed that if workers had the necessary knowledge and technical training, results would automati- cally follow. But organizations have realized that knowledge and training alone do not guarantee success—what people know and what they do often don’t align. Experts label this disparity the knowing-doing gap.1 The knowing-doing gap is the difference between what people know and what they actually do. For instance, everybody knows that treat- ing people with respect is a good idea, but some managers don’t always do this. Closing such gaps is an important ele- ment of your own success at school, work, and home. It also is a major focus of OB and this book.
The Limits of Common Sense You may feel that common sense will go a long way toward solving most business and career challenges. But if com- mon sense were all that mattered, managers would always treat employees fairly, businesses would never make “stu- pid” decisions, and you and other (new) employees would make very few mistakes. Everybody would perform better and be happier. However, this certainly isn’t true of all employers and managers. And for their part, entry-level employees are often ill-prepared and thus underperform.
Where Employers Say New Hires Fall Short Results published by the Association of American Colleges and Universities showed that employers and students largely agree on the most important skills, such as teamwork,
4 PART 1 Individual Behavior
1.1 THE VALUE OF OB TO MY JOB AND CAREER
The term organizational behavior (OB) describes an interdisciplinary field dedicated to understanding and managing people at work. To achieve this goal, OB draws on research and practice from many disciplines, including:
• Anthropology • Political science • Economics • Psychology • Ethics • Sociology • Management • Statistics • Organizational theory • Vocational counseling
From this list you can see that OB is very much an applied discipline that draws from many sources. This book will make it as relevant and useful for you as possible.
Let’s look at how OB compares to your other courses, explain the contingency per- spective (the premise of contemporary OB), and explore the importance of both hard and soft skills.
How can I use knowledge of OB to enhance my job performance and career?
THE BIGGER PICTURE
Are you uncertain about the value of organizational behavior (OB) and how it fits into your
school curriculum or your professional life? This section will explain how OB can be valuable
to you. You’ll see how OB knowledge and tools go far beyond common sense and can en-
hance your personal job performance and career success. For instance, you will learn about
what it takes to get hired versus what it takes to get promoted, the importance of both hard
and soft skills, and the role of self-awareness in your success.
Our professional lives are extremely busy and challenging. Effectiveness requires a host of both hard and soft skills. Your understanding and application of OB concepts and tools will help you meet the many challenges, perform better, and create more attractive opportunities throughout your career. © Stuart McCall/Photographer’s Choice/Getty Images
5Making OB Work for Me CHAPTER 1
How OB Fits into My Curriculum and Influences My Success Organizational behavior is an academic discipline focused on understanding and managing people at work. This includes managing yourself, as well as others up, down, and sideways in the organization. But unlike jobs associated with functional disciplines such as account- ing, marketing, and finance, you will not get a job in OB.
What, then, is the benefit to learning about OB? The answer is that the effective ap- plication of OB is critical to your success in all disciplines of work and all job levels. As you’ll learn, technical knowledge associated with any given job is important, but your ability to influence, get along with, manage, and get things done through others is what makes the difference. People skills!
Applying OB knowledge and tools gives you opportunities, sets you apart from your peers and competition, and contributes to your success. An important part of your success is your ability to know which tools to use and under what circumstances. This is de- scribed as a contingency approach to managing people and is the foundation of contem- porary OB.
A Contingency Perspective—The Contemporary Foundation of OB A contingency approach calls for using the OB concepts and tools that best suit the situation, instead of trying to rely on “one best way.” This means there is no single best way to manage people, teams, or organizations. A particular management practice that worked today may not work tomorrow. What worked with one employee may not work with another. The best or most effective course of action instead depends on the situation.
Harvard’s Clayton Christensen puts it like this: “Many of the widely accepted prin- ciples of good management are only situationally appropriate.”5 In other words, don’t use a hammer unless the job involves nails. You’ll learn in Chapter 13, for instance, that there is no single best style of leadership. In this way, OB differs from many of your other courses in that answers here are rarely black and white, right or wrong, but instead the best answer—the most appropriate behavior—depends on the situation. The explicit con- sideration of situational factors is fundamental to OB and is emphasized throughout this book.
Thus, to be effective you need to do what is appropriate given the situation, rather than adhering to hard-and-fast rules or defaulting to personal preferences or organizational norms. Organizational behavior specialists, and many effective managers, embrace the contingency approach because it helps them consider the many factors that influence the behavior and performance of individuals, groups, and organizations. Taking a broader, contingent perspective like this is a fundamental key to your success in the short and the long term.
The following OB in Action box illustrates how Google has applied the contingency approach and changed some of its benefits to more precisely meet employees’ preferences for work–life balance and parenthood.
Effectively applying the contingency approach requires knowing yourself—your own skills, abilities, weaknesses, strengths, and preferences. Such knowledge is called self- awareness, and it is key to your success in both the short and long term.
How Self-Awareness Can Help You Build a Fulfilling Career The Stanford Graduate School of Business asked the members of its Advisory Council which skills are most important for their MBA students to learn. The most frequent answer was self- awareness.6 The implication is that to have a successful career you need to know who you are, what you want, and how others perceive you. Larry Bossidy (former CEO of Honeywell) and Ram Charan (world-renowned management expert) said it best in their book Execution: “When you know yourself, you are comfortable with your strengths and not crippled by your shortcomings. . . . Self-awareness gives you the capacity to learn
6 PART 1 Individual Behavior
from your mistakes as well as your successes. It enables you to keep growing.”9 They also argue that you need to know yourself in order to be authentic—real and not fake, the same on the outside as the inside. Authenticity is essential to influencing others, which we discuss in detail in Chapter 12. People don’t trust fakes, and it is difficult to influence or manage others if they don’t trust you.
As professors, consultants, and authors, we couldn’t agree more! To help you in- crease your self-awareness we include multiple Self-Assessments in every chapter. These are an excellent way to learn about yourself and see how OB can be applied at school, at work, and in your personal life. Go to Connect, complete the assessments, and then an- swer the questions included in each of the Self-Assessment boxes.
Let’s start with your motivation to manage others. Many employees never manage others. Some don’t choose to, and some don’t get the chance. But what about you? How motivated are you to manage others? Go to connect.mheducation.com and Self- Assessment 1.1 to learn about your motivation for managing others. What you learn might surprise you. Whether it does or not, more precisely understanding your motivation to manage others can guide your course selection in college and your job choices in the marketplace.
While Google’s talent is constantly being poached by its competitors, some em- ployees simply quit, especially women. The company noticed that many women were leaving, or more precisely, not returning after maternity leave. Some chose to stay home with their children. But they were leaving at twice the average rate of all employees. So Google explored the possibility that its policies might be playing a role.
The Industry Standard Generally, the tech industry, Silicon Valley firms in par- ticular, offers 12 weeks of paid time off for maternity leave and seven weeks for employees outside California.
New Plan Google’s response was to begin offering five months of full pay and full benefits, exceeding the industry standard. Better still, new mothers can split the time, taking some before the birth, some after, and some later still when the child is older.
New Plan Plus Improved benefits were extended to all Google employees, even those outside of Silicon valley, including fathers. All new fathers, and new mothers outside of Silicon valley, now enjoy seven weeks of new-parent leave. This en- ables new mothers and fathers the opportunity to manage their time and focus on the new baby.7 Many companies now have similar practices. For example, Alston & Bird, an Atlanta-based law firm, provides employees $10,000 and 90 days of paid leave for adoptive parents and covers infertility treatment in its health plan.8
1. If you alone could make policies at Google (or your workplace), what would you do to keep valuable employees?
2. How could you apply the contingency approach to make these and other policies more effective?
3. What else would you do? Why?
Google Search: How Can We Keep Talented Employees?
OB in Action
7Making OB Work for Me CHAPTER 1
A central feature of most any successful development program is self- awareness. Knowing who you are and your preferences are important considerations in personal development. © Lana Isabella/Getty Images RF
How Strong Is My Motivation to Manage? Please be prepared to answer these questions if your instructor has assigned Self-Assessment 1.1 in Connect.
1. Does this instrument accurately assess your potential as a manager? Explain.
2. Which of the seven dimensions do you think is likely the best predictor of managerial success? Which is the least? Explain.
3. The instrument emphasizes competition with others in a win-lose mentality. Describe the pros and cons of this approach to management.
Uncommon Sense Let’s return to common sense. At first glance the contingency perspective may look like simple common sense. But it’s different. Common sense is of- ten based on experience or logic, both of which have limits, and it suffers three major weaknesses you need to be aware of and avoid:
• Overreliance on hindsight. Common sense works best in well-known or stable situations with predictable outcomes—what worked before should work again. But modern business situations are complex and uncertain and require adapting to change. Common sense is especially weak in responding to the unknown or unex- pected. And because it focuses on the past, common sense lacks vision for the future.
• Lack of rigor. People comfortable with common-sense responses may not apply the effort required to appropriately analyze and solve problems. If you lack rigor, then you are unlikely to define the problem accurately, identify the true causes, or recommend the right courses of action.
• Lack of objectivity. Common sense can be overly subjective and lack a basis in science. In such cases we are not always able to explain or justify our reasoning to others, which is a sign that common sense lacks objectivity.
In BusinessNewsDaily, Microsoft researcher Duncan Watts says we love common sense because we prefer narrative: “You have a story that sounds right and there’s nothing to
8 PART 1 Individual Behavior
contradict it.” Watts contrasts a more effective, scientific approach in his book Everything Is Obvious Once You Know the Answer: How Common Sense Fails Us. “The difference [in a scientific approach] is we test the stories and modify them when they don’t work,” he says. “Storytelling is a useful starting point. The real question is what we do next.”10
OB is a scientific means for overcoming the limits and weaknesses of common sense. The contingency approach in OB means you don’t settle for options based simply on ex- perience or common practice if another solution may be more effective. Thus the goal of OB is to give you more than common sense and thus enhance your understanding of situ- ations at work and guide your behaviors. This in turn will make you more attractive to potential employers and more effective once hired. Let’s explore this idea in more detail, beginning with the importance of possessing and developing both hard and soft skills.
Employers Want Both Hard and Soft Skills Most of us know the difference between hard and soft skills.
• Hard skills are the technical expertise and knowledge required to do a par- ticular task or job function, such as financial analysis, accounting, or operations.
• Soft skills relate to human interactions and include both interpersonal skills and personal attributes.
“People rise in organizations because of their hard skills and fall due to a dearth of soft skills.”11 Maybe that’s why firms tend to weigh soft skills so heavily when hiring for top positions. The most sought-after skills for MBA graduates are problem solving, lead- ership, and communication.12 These skills also are the most difficult to find.
And results from a recent CareerBuilder survey tell a similar story for undergraduates and entry-level positions:
The problem isn’t that new grads don’t have the right degrees or technical know-how. Only 10% of employers said there weren’t enough graduates with the appropriate degrees and just 13% said students lacked computer or technical skills. But employers are troubled by graduates’ lack of soft skills. Many report that college grads are lacking in people skills and have trouble solving problems and thinking creatively. . . . Having a college degree and technical skills isn’t enough to land their first job.13
Learning about My Soft and Hard Skills
You just learned that soft and hard skills both affect your success. Take a moment to apply this new knowledge and make it personal and relevant for you.
1. List what you think are your two strongest soft skills. Also briefly, and specifically, explain how they can or do benefit you at school and work.
2. List what you think are your two strongest hard skills. Explain specifically how they can or do benefit you at work and school.
Table 1.1 shows four sought-after skills, along with a brief explanation of how we directly address them in this book.
What do you notice about these four items? Which are hard skills? None! Instead, all are soft skills, the skills you need to interact with, influence, and perform effectively when working with others. Debra Eckersley, a managing partner of human capital at PricewaterhouseCoopers, says the rise of soft skills is a consequence of managers “listen- ing to clients and what they value.”14
One other key aspect of soft skills is that they are not job specific. They are instead portable skills, more or less relevant in every job, at every level, and throughout
9Making OB Work for Me CHAPTER 1
TABLE 1.1 FOUR SKILLS MOST DESIRED BY EMPLOYERS
Skill Description This Book
1. Critical thinking Using logic and reasoning to identify the strengths and weaknesses of alternate solutions, conclusions, or approaches to problems.
Fundamental to this book and woven throughout. We designed features and exercises to help you think critically and apply your OB knowledge and tools.
2. Problem solving Identifying complex problems and reviewing related information to develop and evaluate options and implement solutions.
Our problem-solving approach is used throughout the book. We repeatedly ask you to apply your knowledge to solve problems at school, at work, and in life.
3. Judgment and decision making
Considering the relative costs and benefits of potential actions to choose the most appropriate ones.
Integral to problem solving and success. We integrate judgment and decision making in all problem-solving content and devote an entire chapter to these soft skills.
4. Active listening Giving full attention to what other people are saying; taking time to understand the points being made; asking questions as appropriate and not interrupting.
Key success factor at work. We address this directly in the chapters on influencing others and leadership.
Adapted from M. Elliott, “5 Skills College Grads Need to Get a Job,” May 1, 2015, CheatSheet.com, http://www.cheatsheet.com/personal-finance/5-skills-todays- college-grads-need-to-get-a-job.html/?a=viewall.
your career.15 All these and many more soft skills are represented by OB topics covered in this book, whether as personal or interpersonal attributes:
Personal attributes Interpersonal skills (with which we build goodwill and (with which we foster respectful trust and demonstrate integrity) interactions) • Attitudes (Chapter 2) • Active listening (Chapters 12 and 13) • Personality (Chapter 3) • Positive attitudes (Chapters 2 and 7) • Teamwork (Chapter 8) • Effective communication (Chapter 9) • Leadership (Chapter 13)
The take-away for you? Good interpersonal skills can make even a candidate with a less- marketable degree an appealing hire, while a lack of people skills may doom a college grad to unemployment.16
How OB Fits into My Career Hard skills are of course important. For instance, accountants need to understand debits and credits, financial analysts need to derive net present value, and both need to under- stand cash flows. However, to be competitive and give employers what they want, you need to develop your soft skills as well. In fact, some soft skills will increase in impor- tance over your career and help set you apart from your competition.17 To highlight this point, think about the criteria used for hiring workers versus promoting them.
What It Takes to Get Hired Regardless of where you are in your career today, ask yourself: What criteria were used to hire you for your first job? What factors did your hir- ing manager consider? (If your first job is still ahead of you, what factors do you think will be most important?) You and most of your peers will identify things like education, grades, interpersonal skills, and internship or other experience. In short, for most jobs you are selected for your technical skills, your ability to do the given job.
10 PART 1 Individual Behavior
Everybody knows that jobs are won or lost during interviews. Here are a few simple tips to help you finish on top.
1. Create an elevator pitch. Imagine you’re in the elevator with the interviewer and have only 60 seconds to sell yourself. Select your three best selling points (strengths) and concisely explain how each would benefit the company. Stay focused—keep your pitch short and meaningful.
2. Finish strong. At the end of the interview state and show your enthusiasm for the opportunity. Also restate your one or two best selling points and how they will benefit the company.
3. Prepare for situational questions. Anticipate questions such as, “Why do you want this job?” and, “Tell me about a time when you had a conflict at work and what you did about it.” Be prepared to answer them by describing the situation, your behavior, and the resulting impact. Also consider describing what you learned in that situation.
4. Make your research social. Reach out to your network, privately (you don’t want everybody to know you’re looking), and learn whether anybody has worked for or interviewed with your target company. Learn about the person you’re interviewing with on LinkedIn—education, past jobs, positions within the target company. Glassdoor.com and other sites can be a wealth of information on employee expe- riences and compensation.
5. Don’t trip up on the money. It’s generally best to wait until you have a formal offer in hand before discussing pay. If asked about your salary requirement during the interview, respond by saying, “Are you making me an offer?” The answer will likely be, “No, not yet.” But if the interviewer persists, say, “I would prefer to have all the details in hand in order to determine what would be most appropriate and fair. Once I have those, I will happily discuss compensation.”18
How to Ace Your Next Interview
An understanding of OB can give you extremely valuable knowledge and tools to help “sell” yourself during job interviews. Applying OB knowledge can also enhance your chances for promotions. © Chris Ryan/agefotostock RF
What It Takes to Get Promoted Now ask yourself, what criteria are being used for promotions? Of course, performance in your current job is often a primary consid- eration. However, you and many other em- ployees may fail to realize that your perceived ability to get things done through others and to manage people will be an- other important deciding factor. If you and three of your coworkers are all vying for an open job in management, then it’s likely all four of you perform at a high level. Therefore, performance isn’t the only de- ciding factor. Instead, it may be your per- ceived ability to directly or indirectly manage others!
Roxanne Hori, an associate dean at New York University’s Stern School of Business, echoes this argument: “Yes, your knowledge of the functional area you’re
11Making OB Work for Me CHAPTER 1
pursuing is important. But to succeed longer term . . . having strong team skills and knowing how to build and manage relationships were seen as just as important.” One executive she interviewed suggested that students should “take as much organizational behavior coursework as possible . . . because as you move into leadership roles, the key skills that will determine your success will be around your ability to interact with others in a highly effective fashion.”19
Some career experts, such as Chrissy Scivicque, the CEO of a career develop- ment and training firm and writer for Forbes and The Wall Street Journal, go so far as to say that most people have the technical skills to succeed at higher-level jobs. And even if some new technical knowledge is needed, it generally is easy to learn. However, as you rise through the hierarchy, your job generally will require a more developed set of soft skills. Skills like communication, emotional intelligence, eth- ics, and stress management.20 And mentions of critical thinking in job postings have doubled since 2009.21
We make this point visually in Figure 1.1. It illustrates how technical or job-specific skills decline in importance as you move to levels of higher responsibility, while personal skills increase.
Performance Gives Me Credibility Performance matters because it gives you cred- ibility with your peers and those you may manage. Just be aware that early in your career your bosses will be looking for more. They will evaluate your management potential, and their opinion will affect your opportunities. So even in a line (nonmanagement) position, you need to know how to:
• Apply different motivational tools (Chapter 5). • Provide constructive feedback (Chapter 6). • Develop and lead productive teams (Chapters 8 and 13). • Understand and manage organizational culture and change (Chapters 14 and 16).
Knowledge of OB, therefore, is critical to your individual performance, your ability to work with and manage others, and your career success (promotions, pay raises, in- creased opportunities). And because ethics can similarly make or break you at every step of your career, we cover it next.
FIGURE 1.1 RELATIVE IMPORTANCE OF DIFFERENT SKILLS BASED ON JOB LEVEL
Low Job Level
Importance Personal Skills
SOURCE: Adapted from M. Lombardo and R. Eichinger, Preventing Derailment: What to Do Before It’s Too Late (Greensboro, NC: Center for Creative Leadership, 1989).
12 PART 1 Individual Behavior
Ethics guides behavior by identifying right, wrong, and the many shades of gray in between. We will weave discussions of ethics throughout the book for three key reasons.
1. Employees are confronted with ethical challenges at all levels of organizations and throughout their careers.
2. Unethical behavior damages relationships, erodes trust, and thus makes it difficult to influence others and conduct business.
3. Unethical behavior also reduces cooperation, loyalty, and contribution, which hurts the performance of individuals, teams, and organizations.
Ethics also gets priority because many OB topics have a direct and substantial influence on the conduct of individuals and organizations. Notably, reward systems (Chapter 6), decision making (Chapter 11), leader behavior (Chapter 13), and organi- zational culture (Chapter 14) all can powerfully call upon our ethical standards at work. Let’s begin by describing cheating and other forms of unethical conduct at school and work.
Cheating The news now routinely reports about cheating in sports, such as alleged match-fixing by a number of professional tennis players and scores of instances of the use of performance- enhancing drugs: the Russian Olympic team’s systematic use and cover-up, cyclist Lance Armstrong’s public confession of drug use during each of his Tour de France victories (legal charges were ultimately filed), and Major League Baseball’s lifetime ban of pitcher Jenrry Mejia for three separate steroid violations. But cheating occurs in every other area of our lives too.
What about cheating at school? Anonymous surveys by the Josephson Institute of more than 23,000 students at private and public high schools across the United States found 59 percent admitted cheating on a test in the past academic year, and 32 percent reported plagiarizing material found on the Internet.22 Fifty-seven percent of participating high school students agreed with the statement “In the real world, successful people do what they have to do to win, even if others consider it cheating.”23
Why do people engage in unethical behavior, even unwittingly, and what lessons can I learn from that?
THE BIGGER PICTURE
If you were asked, “Do you know right from wrong? Are you secure in your ethics?” you would
likely answer yes to both questions. What’s interesting is that most people who suffer ethical
lapses also answer yes. OB can teach you about the drivers of unethical behavior and, in the
process, improve your awareness and enable you to reduce your risk. You’ll learn that even
though most unethical behavior is not illegal, it still causes tremendous damage to people,
their jobs and careers, and their employers. Fortunately, the OB concepts and tools you pick
up through this course will help you recognize and navigate ethical challenges.
1.2 RIGHT VS. WRONG—ETHICS AND MY PERFORMANCE
13Making OB Work for Me CHAPTER 1
The story doesn’t get any better in college. Turnitin.com, the plagiarism-checking service, reported finding 156 million matches between college student papers and previ- ously published Internet material. The two top sources? Wikipedia and Yahoo Answers. As an example, 125 of 279 members of a particular government class at Harvard Univer- sity were suspected of cheating on a take-home final.24 These are just a few examples and statistics of a very long list. What percentage of students at your school do you think cheat on homework assignments? Exams? Take-home finals?
Cheating isn’t limited to students. Nearly three dozen Atlanta-area school administra- tors and teachers were indicted for changing, fabricating, or otherwise falsifying student scores on statewide aptitude tests from at least 2001 to 2009. Some took plea deals and others are serving prison time.25 Goldman Sachs fired 20 analysts in 2015 for cheating on internal training exams, and JPMorgan Chase reported that it terminated 10 employees for similar offenses.26
Now let’s explore other forms of unethical conduct and their legality, frequency, causes, and solutions.
Ethical Lapses—Legality, Frequency, Causes, and Solutions The vast majority of managers mean to run ethical organizations, yet corporate corrup- tion is widespread.27 Some of the executives whose unethical behavior bankrupted the organizations they led, destroyed the lives of many employees, and caused enormous losses for employees, investors, and customers in the last few decades are Michael Milken (Drexel Burnham Lambert, 1990), Kenneth Lay and Jeff Skilling (Enron, 2001), Bernie Ebbers (WorldCom, 2002), Bernie Madoff (Madoff Investment Securities LLC, 2009), Hisao Tanaka (Toshiba, 2015), and Sepp Blatter (FIFA, 2015). None of these leaders acted alone.
Indictments and verdicts are a matter for the courts. Our point, rather, is that each of these disgraced executives led companies or organizations that in most cases employed thousands of other people. Surely these organizations did not advertise for and hire the criminally minded to help the leaders in their unethical endeavors. Most employees prob- ably knew little or nothing about any unethical or illegal activities, while others were deeply involved. How does the work environment produce unethical conduct, sometimes
In early 2016, tennis star Maria Sharapova (left photo) tested positive for a performance- enhancing drug. She quickly admitted to the finding and apologized. Sepp Blatter (right photo), former president of soccer’s international governing body FIFA, was at the heart of a scandal that rocked the organization, cost Blatter and others their jobs, and led to formal investigations across the globe. Investigators uncovered a well-entrenched and long-lasting pattern of bribes and other financial misconduct. (Left) © Damian Dovarganes/AP Photo; (right) © Valeriano Di Domenico/AFP/Getty Images
14 PART 1 Individual Behavior
One. That is the number of Wall Street executives who actually went to jail for actions leading up to the financial crisis of 2008–2009, and that one conviction didn’t happen until 2014.30 Of the more than 14,000 financial fraud cases brought during the period of the crisis, only 17 named CEOs and other respon- sible executives.
Two central figures during that time had telling and damning comments. Eric Holder, the former US attorney general, said the conduct that led to the crisis was “unethical and irresponsible.” And “some of this behavior—while morally reprehensible—may not necessarily have been criminal.”31 Ben Bernanke, former chair of the Federal Reserve Bank, said, “. . . more corporate executives should have gone to jail for their misdeeds . . . since everything that went wrong or was illegal was done by some individual, not by an abstract firm.”32
1. If you think executives (and perhaps other employees) of financial institutions should be punished for their roles in the crisis, describe what you think is appropriate.
2. If you think they should not be punished, explain why. 3. Is it appropriate for the firms to pay fines, but for the executives to avoid
consequences? Justify your answer.
Wrong? Absolutely! Illegal? Seemingly Not. OB in Action
on an extreme scale, from people who are otherwise good, well intentioned, and on the right side of the law? Knowledge of OB helps you answer this question.
Unethical Does Not Mean Illegal While extreme examples of unethical and il- legal conduct make headlines, they are the exception. The truth is that very few un- ethical acts are also illegal, most are not punished in any way, and even if illegal, few are prosecuted.
This means you should not rely on the legal system to manage or assure ethical conduct at work. For instance, FoxConn, Apple Computer’s top supplier in China, was in the spotlight for its highly publicized ill-treatment of 1.2 million Chinese employ- ees, who suffered 14-hour workdays, six- to seven-day workweeks, low wages, and retaliation for protesting.28
American Airlines pilots provided another example in 2012 when they created wide- spread slowdowns in flights to pressure the company in negotiations with their union. American’s on-time performance dropped from 80 percent to 48 percent, versus 77 per- cent for Southwest and 69 percent for Delta. The slowdowns resulted in enormous costs and inconveniences for thousands of customers.29
None of the conduct in these examples was illegal. The following OB in Action box provides another notable instance of how widespread unethical behavior has resulted in virtually no legal consequences.
Why Ethics Matters to Me and My Employer Criminal or not, unethical behavior negatively affects not only the offending employee but also his or her coworkers and em- ployer. Unethical behavior by your coworkers, including company executives, can make you look bad and tarnish your career.
15Making OB Work for Me CHAPTER 1
SAC Capital Advisors, for example, is one of the most suc- cessful hedge funds in recent years. But the fund and its founder, Steven Cohen, were dogged throughout 2012–2016 by suspicions of insider trading, and many traders with ties to SAC were convicted. Before any formal charges were made against the firm itself or its founder, clients withdrew nearly $2 billion in assets.33 SAC investors ultimately withdrew even more money, nearly $2 billion in fines were levied, and the fund was ordered to close. Cohen reopened the company as a “family office” that trades only his personal fortune. He ultimately set- tled charges brought against him personally, without admitting guilt, which resulted in his paying no personal fines and being banned only from trading other people’s money for two years.34
To make this more real for you, imagine you are inter- viewing for a job. How would you explain your past employment history if it included jobs at SAC, Enron, Countrywide, MF Global, or Madoff Investment Securities? It certainly is possible and even likely that you did nothing wrong. However, it is likely that you would always be concerned about what others thought or suspected about
your involvement. Would suspicions always be in the back of your future colleagues’ minds? Would that cost you opportunities? Cause you stress?
Thankfully, research provides us with clear ways to avoid such problems:
. . . sustainable businesses are led by CEOs who take a people-centered, inclusive approach rather than a controlling, target-driven one. They are people who listen, who foster cultures in which employees are not scared to point out problems and in which staff feel they have a personal responsibility to enact corporate values, be they health and safety concerns or putting the client’s interests first.35
Ethical Dilemmas Ethical dilemmas are situations with two choices, neither of which resolves the situation in an ethically acceptable manner. Such situations surround us at work and school. They highlight the fact that choosing among available options is not always a choice between right and wrong. Because such dilemmas are so frequent and potentially con- sequential, we include an Ethical/Legal Challenge feature at the end of each chapter that asks you to consider what you might do if confronted with difficult ethical choices at work.
An excellent example is provided by managers responsible for determining which employees are downsized. When Audi of North America decided to relocate a large percentage of its operations from one part of the United States to another, one of the finance managers was responsible for “working the numbers” on how many people would be invited to relocate, how many would be terminated, and what types of severance pack- ages would be offered and to whom.
All this was necessary and needed to be done by somebody in the company. The problem, however, was that many of these people were friends and colleagues of the per- son doing the analyses. She had the “hit list” (as it was called) for weeks and was unable to share the information with the others, even as they worked side by side, had lunch, and interacted socially in the meantime.
Stephen A Cohen and many of his hedge fund’s employees were the focus of multiple investigations and lawsuits by regulators for several years. © Ronda Churchill/Bloomberg/Getty Images
Whistle-blowing often creates a particularly challenging type of ethical dilemma. Peo- ple do wrong, unethical, and even illegal things at work, and you and other employees may know that they did. The dilemma is what to do about it. Many times you’re
The Whistle-Blower’s Dilemma OB in Action
16 PART 1 Individual Behavior
tempted to reveal the behavior to management or to the authorities— blow the whistle. This seems like the “right thing to do.” Depending on the situation, you may even profit, but you might also pay.
Whistle-Blowing for Profit The Dodd-Frank Act of 2010 and some regulatory agencies provide incen- tives for whistle-blowers. Some can receive up to 30 percent of any settlement if regulators collect more than $1 million due to the in- fraction.36 Bradley Birkenfeld, an ex-banker for UBS, was awarded $104 million for exposing the way his bank helped US clients hide money in Swiss accounts. Cheryl Eckard was awarded $96 million for revealing manufacturing flaws in the production of some of Glaxo- SmithKline’s pharmaceuticals.37
Dr. William LaCorte of Louisiana seems to be a serial whistle-blower. He has filed multiple lawsuits against pharmaceutical companies (Pfizer and Merck) and received awards totaling nearly $100 million.38 Olympus Corp., a global medical device company, was ordered to pay $646 million in civil and criminal penalties for providing kickbacks, bribes, and other inappropriate forms of influence to win business. The whistle-blower and former chief compliance officer, John Slowik, reported the violations internally. But nothing was done, so he escalated the matter to federal officials. His reward: $51 million.39
The Costs As a vice president at Chase Bank, Linda Almonte was asked to review more than 20,000 past-due credit card accounts before they were sold to another company. Almonte’s team reported back to her that nearly 60 percent contained some sort of major error, including discrepancies about the amount or whether the court had indeed ruled for the bank. Concerned, Almonte went up the chain of com- mand, flagging the errors and encouraging management to halt the sale. Instead, the bank fired Almonte and completed the deal.40 Nobody would hire her, which ruined her professionally and financially. She and her family ultimately moved to another state, where they lived in a hotel while she continued to look for work.
Ultimately, Chase was ordered to pay $200 million in fines and restitution. The company also settled a suit for an undisclosed amount with Almonte.41
What’s the Lesson? Don’t underestimate the likelihood and costs of retaliation. Codes of ethics that forbid retaliation are just empty words if unethical people aren’t held accountable. And a lack of accountability is the hallmark of corrupt organizations. Doing the right thing can be very costly.
1. What can employers do to encourage whistle-blowers? 2. How can organizations ensure that whistle-blowers are protected, other than
simply making it a policy ( just words)? 3. What can you do as an individual employee when you witness or become
aware of unethical conduct?
Sherron Watkins became one of the most famous whistle-blowers in history when she helped undo Enron. Enron was an energy and trading company that soared in the 1990s and failed in one of the most calamitous ethical scandals in modern business. Watkins now earns a living speaking about her experience and ethics more generally, which likely pays far less than jobs in the energy sector. © Scott J Ferrell/Congressional Quarterly/Alamy
17Making OB Work for Me CHAPTER 1
TABLE 1.2 CAUSES OF UNETHICAL BEHAVIOR AT WORK AND WHAT TO DO ABOUT IT
The Slippery Slope
Description: We set goals and incentives to promote a desired behavior, but they encourage a negative one.
We overlook the unethical behavior of another when it’s in our interest to remain ignorant.
We hold others less accountable for unethical behavior when it’s carried out through third parties.
We are less able to see others’ unethical behavior when it develops gradually.
We give a pass to unethical behavior if the outcome is good.
Example: The pressure to maximize billable hours in accounting, consulting, and law firms leads to unconscious padding.
Baseball officials failed to notice they’d created conditions that encouraged steroid use.
A drug company deflects attention from a price increase by selling rights to another company, which imposes the increases.
Auditors may be more likely to accept a client firm’s questionable financial statements if infractions have accrued over time.
A researcher whose fraudulent clinical trial saves lives is considered more ethical than one whose fraudulent trial leads to deaths.
Remedy: Brainstorm unintended consequences when devising goals and incentives. Consider alternative goals that may be more important to reward.
Root out conflicts of interest. Simply being aware of them doesn’t necessarily reduce their negative effect on decision making.
When handing off or outsourcing work, ask whether the assignment might invite unethical behavior and take ownership of the implications.
Be alert for even trivial ethical infractions and address them immediately. Investigate whether a change in behavior has occurred.
Examine both “good” and “bad” decisions for their ethical implications. Reward solid decision processes, not just good outcomes.
SOURCE: Harvard Business Review. “Ethical Breakdowns: Good People Often Let Bad Things Happen” by M. Bazerman and A. Tenbrunsel, April 2011. Copyright © 2011 by the Harvard Business School Publishing Corporation; all rights reserved.
What Causes Unethical Behavior? Harvard professor Max Bazerman and Ann Tenbrunsel of the University of Notre Dame have studied ethical and unethical conduct extensively. They concluded that while criminally minded people exist in the workplace, most employees are in fact good people with good intentions. Bazerman and Tenbrunsel contend that instead of ill intent, cognitive biases and organizational practices “blind managers to unethical behavior, whether it is their own or that of others.”42 Table 1.2, which summarizes their findings, outlines causes of unethical behavior and what we can do to address that behavior as employees and managers.
Identifying Unethical Behavior at School and Work
1. Identify the three most common forms of unethical behavior at school or where you work. Be specific.
2. Using Table 1.2, identify the likely causes for each.
3. Describe one thing that can be done to prevent or remedy each of the behaviors you noted in question 1. Use Table 1.2 for ideas/suggestions.
18 PART 1 Individual Behavior
What about Unethical Behavior in College and When Applying for Jobs? A study of graduate students in the United States and Canada, including MBAs, found that peer behavior was by far the strongest predictor of student cheating, followed by se- verity of penalties and certainty of being reported.43 Students are more likely to cheat if their classmates cheat, and/or they think the probability of being caught is small, and if caught that the penalties will not be severe.
However, don’t be too quick to blame this bad behavior on your lying, cheating classmates. The same researchers acknowledge that there are many other potential rea- sons for cheating, such as perceived unfairness in grading. It also is possible that stu- dents see different degrees of cheating—for instance, in homework assignments versus on exams.
As for job hunting, an analysis of 2.6 million job applicant background checks by ADP Screening and Selection Services revealed that “44 percent of applicants lied about their work histories, 41 percent lied about their education, and 23 percent falsified cre- dentials or licenses.”44 Figure 1.2 highlights some of the most common and most outra- geous lies told on résumés. Can you imagine being a recruiter? If you believe these numbers, half the people you interview could be lying to you about something! Many
Most Creative Liars The best lies came from those who claimed to …
Liar, Liar, Résumé on Fire
More than half of hiring and HR managers have caught a lie on a résumé. Here are some results from a survey of more than 2,500 hiring professionals.
Most Common Lies
Be a Nobel Prize winner.
Be a former CEO of the company to which the person was applying.
Have worked in a jail (when the person really was serving time there).
Have attended a college that didn’t exist.
Be employed at three di�erent companies in three di�erent cities simultaneously.
Be HVAC-certified and later asked the hiring manager what “HVAC” meant.
FIGURE 1.2 EXAMPLES AND PREVALENCE OF LIES ON RÉSUMÉS
SOURCE: K Gurchiek, “Liar, Liar, Resume on Fire,” SHRM, September 2, 2015, https://www.shrm.org/resourcesandtools/hr-topics/ talent-acquisition/pages/lying-exaggerating-padding-resume.aspx.
19Making OB Work for Me CHAPTER 1
potential reasons for unethical behavior at work exist, beyond those listed in Table 1.2, such as:
1. Personal motivation to perform (“I must be No. 1”). 2. Pressure from a supervisor to reach unrealistic performance goals along with threats
for underperforming. 3. Reward systems that honor unethical behavior. 4. Employees’ perception of little or no consequences for crossing the line.45
Some people don’t see their actions as unethical. Despite both Enron executives be- ing convicted, Jeff Skilling proclaims his innocence to this day, as did Ken Lay until he died. Nevertheless, it will be helpful for you to learn more specifically about your own ethical tendencies. Some people view ethics in ideal terms, which means that ethical prin- ciples or standards apply universally across situations and time. Others, however, take a relativistic view and believe that what is ethical depends on the situation. Take Self- Assessment 1.2 to learn about your own views.
Assessing My Perspective on Ethics Please be prepared to answer these questions if your instructor has assigned Self- Assessment 1.2 in Connect.
1. Are your views more idealistic or more relativistic?
2. What do you think about students cheating on homework assignments in school? What about cheating on exams?
3. Are your answers consistent with your score? Explain.
4. Suppose you’re a manager. What does your score imply about the way you would handle the unethical behavior of someone you manage? What about your boss’s unethical behavior?
What Can I Do about It? Like most others, you have or likely will witness question- able or even blatantly unethical conduct at work. You might be tempted to think, This is common practice, the incident is minor, it’s not my responsibility to confront such issues, and loyal workers don’t confront each other. While such rationalizations for not confront- ing unethical conduct are common, they have consequences for individuals, groups, and organizations. What can you do instead? Here are a few suggestions:
1. Recognize that it’s business and treat it that way. Ethical issues are business is- sues, just like costs, revenues, and employee development. Collect data and present a convincing case against the unethical conduct just as you would to develop a new product or strategy.
2. Accept that confronting ethical concerns is part of your job. Whether it is explicit in your job description or not, ethics is everybody’s job. If you think something is questionable, take action.
3. Challenge the rationale. Many lapses occur despite policies against them. If this is the case, ask, “If what you did is common practice or OK, then why do we have a policy forbidding it?” Alternatively, and no matter the rationale, you can ask, “Would you be willing to explain what you did and why in a meeting with our superiors or customers, or during an interview on the evening news?”
20 PART 1 Individual Behavior
4. Use your lack of seniority or status as an asset. While many employees rely on their junior status to avoid confronting ethical issues, being junior can instead be an advantage. It enables you to raise issues by saying, “Because I’m new, I may have misunderstood something, but it seems to me that what you’ve done is out of bounds or could cause problems.”
5. Consider and explain long-term consequences. Many ethical issues are driven by temptations and benefits that play out in the short term. Frame and explain your views in terms of long-term consequences.
6. Suggest solutions—not just complaints. When confronting an issue, you will likely be perceived as more helpful and be taken more seriously if you provide an alternate course or solution. Doing so will also make it more difficult for the offender to disre- gard your complaint.46
What Role Do Business Schools Play? Each of us is first and foremost responsi- ble for our own ethical conduct. However, we also know that our conduct is shaped by the environment and people around us. Leaders have particular influence on the ethical policies, practices, and conduct of organizations. For instance, a recent study reported that 35 percent of all undergraduate degrees are awarded in business fields, yet 75 per- cent of business schools do not require ethics courses.47 If ethics are so important, why the gap?
The researchers asked this question and found that the gender and academic back- ground of deans, along with whether the school was public or private, predicted the likeli- hood that ethics courses were required. Female deans with a background in management were most likely to require ethics courses, while men with economics and finance back- grounds were least likely. Private and religiously affiliated schools were more likely than public schools to require classes in ethics.48 What is the case at your school? Does it align with these findings?
Now that you have a good understanding of the importance of ethics at school and work, we’ll turn our attention to using OB to solve problems. Applying OB to solve problems is a major part of what makes this knowledge so valuable.
Edward Snowden blew the whistle on the National Security Agency’s monitoring of US citizens’ phone and Internet communications. His actions had enormous impact on his own life, as well as on policies and practices within and between companies, industries, and even countries. © AP Photo
21Making OB Work for Me CHAPTER 1
How can I apply OB in practical ways to increase my effectiveness?
THE BIGGER PICTURE
Now that you know that OB is not just common sense, the challenge is to find a way to
organize and apply its many concepts and theories. In this section, we explain how you can
apply OB to effectively solve problems at work, at school, and in your life. We use a 3-Step
We all encounter problems in our lives. A problem is a difference or gap between an actual and a desired state or outcome. Problems arise when our goals (desired out- comes) are not being met (actual situation). So it is important to carefully consider what your goal or desired outcome is in order to define the problem appropriately. In turn, problem solving is a systematic process for closing these gaps.
For example, Jeff Bezos, CEO and founder of Amazon, downplays the importance of meeting quarterly numbers to please Wall Street. Instead, he defines his problem as delivering superior service to customers, today, tomorrow, and forever. His problem-solving efforts are thus more likely to focus on innovative products and delivery times than on profit margins and earnings per share.
Problem-solving skills are increasingly needed in today’s complex world. Loren Gary, former asso- ciate director at Harvard’s Center for Public Leader- ship, supports this assertion: “The ability to identify the most important problems and devising imagina- tive responses to them is crucial to superior perfor- mance in the modern workplace, where workers at all levels of the organization are called upon to think critically, take ownership of problems, and make real-time decisions.”49
To help you increase your personal performance and well-being at school, work, and home, we cre- ated an informal approach you can use to apply OB tools and concepts to solving problems. It’s simple, practical, and ready for you to use now!
A 3-Step Approach There are many approaches to problem solving, and these approaches vary greatly in their practicality and effectiveness. We discuss a number of these in Chap- ter 11 when learning about decision making. Knowing
1.3 APPLYING OB TO SOLVING PROBLEMS
Reed Hastings, CEO of Netflix, has faced a number of problems in the past few years. The company implemented a very unpopular pricing change for its DVD and streaming services that it eventually abandoned. More recently, one of the most persistent problems is to get approval to operate in and manage the expansion into more than 130 countries. © Francois Guillot/AFP/Getty Images
22 PART 1 Individual Behavior
this, it was important for us as professors and authors to provide you with an approach that is both practical and effective across a variety of situations you encounter. The 3-Step Approach presented in this book is the result of our combined consulting experience of applying our knowledge of OB to help real-world employees and organizations solve problems. Our intent is to help you apply your knowledge to boost your own effectiveness at school, at work, and in life.
Basics of the 3-Step Approach Here are the three steps in our applied approach to problem solving.
Step 1: Define the problem. Most people identify problems reactively—after they happen—which causes them to make snap judgments or assumptions, often plagued by common sense, that incorrectly define the problem and its causes and solutions. All of us would likely benefit from Albert Einstein’s comment, “If I were given one hour to save the planet, I would spend 59 minutes defining the problem and one minute resolving it.” Let’s take Professor Einstein’s advice. The following tip will serve you well when defining problems throughout this course and your professional life. • Define problems in terms of desired outcomes. Then test each one by asking,
“Why is this a problem?” Define problems in terms of desired outcomes or end states—compare what you want to what you have. Resist the urge to assume or infer you “know” what the problem and underlying causes are. Instead, start with available facts or details. Then ask yourself, “Why is this gap a problem?” For example, suppose you are disengaged from your work. How do you know this? What is the evidence? Perhaps you no longer go out of your way to help your coworkers and you stop responding to e-mails after work hours. You’ve defined your problem using evidence (or data). Now ask, “Why is this a problem?” Be- cause when you are engaged, your coworkers benefit from you sharing your knowledge and experience. Coworkers and customers benefit from your respon- siveness and willingness to respond to e-mails on their time line, even when it isn’t necessarily convenient for you (after hours).
Step 2: Identify potential causes using OB concepts and theories. Essential to ef- fective problem solving, regardless of your approach, is identifying the appropriate causes. So far you have OB concepts like the contingency perspective and ethics— and many more are coming—to use as potential causes. The more options you have to choose from, the more likely you will identify the appropriate cause(s) and recommendation(s). To improve your ability to accurately identify potential causes, we provide the following tip for Step 2. • Test your causes by asking, “Why or how does this cause the problem?” Once you have confidently defined the problem in Step 1—disengagement—you need to identify potential causes (Step 2). Ask, “Why am I disengaged?” One common reason, backed by science, is that you perceive you were evaluated un- fairly in your recent performance review. “Why or how did this cause disengage- ment?” Because if you feel unappreciated for what you’ve done, you are not motivated to go the extra mile to help your coworkers or customers. Asking “why” multiple times and following the line of reasoning will lead you to define and identify problems and causes more accurately.
Step 3: Make recommendations and (if appropriate) take action. In some work- place situations you will make recommendations, and in others you will also im- plement the recommendations. Here is a simple suggestion to improve the quality of your recommendations and overall problem solving. • Map recommendations onto causes. Be certain your recommendations address the causes you identified in Step 2. The rationale is when you remedy the causes, then you solve or at least ease the underlying problem. Returning to our engage- ment example, the perceived fairness of performance reviews can be improved if
23Making OB Work for Me CHAPTER 1
managers use multiple raters, such as peers and the employee him- or herself (you’ll learn about multiple raters in Chapter 6). Now, map this recommendation onto the cause (unfair performance review) to ensure it is appropriate and will effectively address the cause and resulting problem. Fixing the cause eliminates the problem.
How This Problem-Solving Approach Develops Throughout the Book As we introduce more OB concepts and tools, the 3-Step Approach will become richer and more useful. For instance, you’ll see in Chapter 11 that this approach to problem solving is an abbreviated version of the rational approach to decision making.
Tools to Reinforce My Problem-Solving Skills Because of the value of problem solving at school, work, and home, we created numerous opportunities for you to master this skill while applying OB. Each chapter, for instance, includes the following features:
• Problem-Solving Application Mini-Cases—These mini-cases present a prob- lem or challenge for you to solve. You are asked to apply the 3-Step Approach to each.
• Self-Assessments—Validated instruments allow you to immediately assess your personal characteristics related to OB concepts, frequently with a personal problem- solving focus, and often followed by a Take-Away Application (see below).
• Take-Away Applications—You are asked to apply what you just learned to your own life at school, at work, or socially.
• End-of-Chapter Problem-Solving Application Cases—The full-length cases re- quire you to apply the OB knowledge gained in that particular chapter to define the problem, determine the causes, and make recommendations.
• Ethical/Legal Challenge—Mini-cases present provocative ethical dilemmas in to- day’s workplace. You are asked to consider, choose, and justify different courses of action.
How good are your problem-solving skills? To get you started, take Self-Assessment 1.3 to measure your problem-solving skills. It will help you understand:
• What types of things you consider when solving problems. • How you think about alternate solutions to problems. • Which approach you prefer when solving problems.
This assessment will help you learn about OB and apply it to improve your own per- formance. (Tip: Take this assessment again at the end of the course to see whether your skills have increased.)
Assessing Your Problem-Solving Potential Please be prepared to answer these questions if your instructor has assigned Self- Assessment 1.3 in Connect.
1. What do items 1–3 tell you about your ability to define problems?
2. Do your scores on items 4–6 match your perceptions of your ability to generate effective solutions?
3. Using the individual items, describe the pros and cons of your tendencies toward implementing solutions.
24 PART 1 Individual Behavior
How could I explain to a fellow student the practical relevance and power of OB to help solve problems?
THE BIGGER PICTURE
When struggling to solve a problem, have you ever felt the solution was beyond your reach?
Sometimes the solution is a matter of organizing or structuring the problem and its elements.
OB can help. We show you useful tools to assist you in organizing and applying your OB
knowledge as it grows. You can use these same tools to solve problems more rigorously and
1.4 STRUCTURE AND RIGOR IN SOLVING PROBLEMS
It’s easier to understand and apply OB if you categorize or organize your knowledge as you learn it. The first and most fundamental distinction is between elements that are re- lated to you and those related to the situation.
The Person–Situation Distinction OB concepts and theories can be classified into two broad categories: person factors and situation factors. The person–situation distinction is foundational to OB knowledge and application.50
• Person factors are the infinite characteristics that give individuals their unique identities. These characteristics combine to influence every aspect of your life. In your job and career, they affect your goals and aspirations, the plans you make to achieve them, the way you execute such plans, and your ultimate level of achievement. Part One of this book is devoted to person factors.
This is simple and makes perfect sense, but as we all know reality is seldom simple. Things get in the way, and these “things” often are situation factors.
• Situation factors are all the elements outside ourselves that influence what we do, the way we do it, and the ultimate results of our actions. A potentially infinite number of situation factors can either help or hinder you when you are try- ing to accomplish something (see the following Problem-Solving Application box). This is why situation factors are critically important to OB and your performance. Parts Two and Three of this book are devoted to situation factors.
Hundreds, if not thousands, of studies have shown that many person–situation factors influence a host of important outcomes, such as job satisfaction, performance, and turn- over. But which is more powerful—the person or the situation?
Which Influences Behavior and Performance More—Person or Situation Factors? Researchers and managers have debated for decades whether person or situ- ation factors are more influential. They ask, for instance, about the relative impacts of “nature versus nurture” and whether leaders are “born or made.” We address these de- bates in Chapter 3 and Chapter 13, respectively, but the relative impacts of person and situation factors on behavior and performance are fundamental to OB.
25Making OB Work for Me CHAPTER 1
Many observers believe some people are by their nature better suited than others to perform well at work (“born winners”). In contrast, others believe some people are clearly better in a given job or situation. No particular person could outperform every other per- son in every possible job! Nobody is the best at everything.
This second view is supported by research in psychology and OB. The interactional perspective states that behavior is a function of interdependent person and situa- tion factors.51 The following quotation captures this reality: “Different people may per- ceive similar situations in different ways and similar people may perceive different situations in the same way.”52
People and Situations Are Dynamic People change, situations change, and the two change each other. To illustrate:
• People bring their abilities, goals, and experiences to each and every situation, which often changes the situation.
• Conversely, because situations have unique characteristics, such as opportunities and rewards, they change people. What you value in a job will likely differ between now and the time you are trying to make a move to senior management.
• It also is true that the current job market and employer expectations differ from those at the height of the technology bubble in the late 1990s or in the depths of the Great Recession in 2007–2009. In the first scenario employees changed, and in the second the situation or environment changed.
• Finally, your manager—a situation factor—can change what you do, the way you do it, and your effectiveness. You can exert the same influence on your manager.
The bottom-line implication for OB and your work life is that knowledge of one type of factor without the other is insufficient. You need to understand the interplay between both person and situation factors to be an effective employee and manager.
How Does the Person–Situation Distinc- tion Help Me Apply OB Knowledge? Categorizing your knowledge in terms of per- son and situation factors will be immensely helpful when applying your OB knowledge to solve problems. Consider downsizing.
Many companies restructure indiscrimi- nately and cut large percentages from their employee ranks. Assume you and five co- workers, who all do the same job, are down- sized. You all experience the same event, but your reactions will vary. For instance, you might not feel too bad if you didn’t like the job and were considering going to graduate school anyway. Two of your coworkers, however, may be devastated and depressed.
Nevertheless, because the downsizing event was the same for all of you (the situation factors were identical), we can assume that the differences in everyone’s reactions were due to things about you as individuals (person factors), such as other job opportunities, how much each of you likes the job you just lost, your ratio of savings to debt, and whether you have kids, mortgages, or a working spouse. The person–situation distinction, therefore, provides a means for classifying OB concepts and theories into causes of behavior and problems.
The energy industry is cyclical, and the most recent downturn has been prolonged and especially tough for the hundreds of thousands of workers who have lost their jobs. Such industry and economic characteristics are important situation factors for these employees. © iStock/Getty Images RF
Technology: A Situation Factor that Affects My Performance
Technology is both helpful and detrimental to employee performance and well-being. To set the stage, consider that roughly two-thirds of all full-time workers own smartphones,53 and some reports show that nearly 50 percent of Internet users regularly perform job tasks outside work.54
What are the benefits of technology? More companies are using smartphones to save time and money. For example, at Rudolph & Sletten, a contractor located in Redwood City, California, workers use blue- print software on their iPads. “The digitized documents partly replace hundreds of pages of construction blueprints that need to be updated so often that student interns handle the monotonous work.” The company estimates that using digitized blueprints can save from $15,000 to $20,000 on a large build- ing contract. This also leads to fewer construction errors because workers are using up-to-date informa- tion. Coca-Cola Enterprises similarly uses mobile-centric devices to streamline the workday of its restaurant service technicians. The company estimates that the technology saves about 30 minutes a day per employee.55
So what’s the downside of technology? More employees are work- ing more hours because they use their smartphones and e-mail after hours. This helps explain a Glassdoor report that 61 percent of em- ployees reported working while on vacation.56 If you’re wondering why so many do this, the same report offered some insights:
1. 40 percent are concerned about the pile of work that will accu- mulate in their absence.
2. 35 percent feel only they can do their jobs. 3. 25 percent are concerned about being replaced while away
and thus losing their jobs.57
Do you get paid for this “overtime”? Another part of this problem created by technology is the payment of overtime. According to the Fair Labor Standards Act, employees should be compensated for work wherever it happens and when it exceeds their defined work- week (40 hours). This can create a problem if employees respond to or send e-mails after hours. For example, T-Mobile settled a law- suit brought against them because salespeople in its stores were expected to work 10 to 15 hours “off the clock” responding to e-mails and texts from customers (they were required to give out their phone numbers and e-mail addresses). Many similar suits have been filed, such as by Chicago police officers and satellite dish installers, both of whom were expected if not required to do uncompensated work remotely.58
© David Jones/Getty Images RF
Apply the 3-Step Problem-Solving Approach
Step 1: Define the problem described in this example.
Step 2: Identify two potential causes (be sure to link the causes to the problem you identified).
Step 3: Make a recommendation aimed at each cause that you feel will improve or remove the prob- lem. (Be sure your recommendations link to the causes.)
26 PART 1 Individual Behavior
27Making OB Work for Me CHAPTER 1
Levels—Individual, Group/Team, and Organization We saw above that OB distinguishes among three levels at work: individual, group/team, and organizational. To illustrate how considering levels helps in solving real-world prob- lems, think about the many reasons people quit their jobs.
• Some people quit because their job doesn’t fulfill what they value, such as chal- lenging and stimulating work (an individual-level input).
• Others quit because of conflicts with their boss or because they have nothing in common with their coworkers (a group/team-level process).
• A common reason people quit is a faulty reward system that unfairly distributes raises, bonuses, and recognition (an organizational-level process).
Understanding and considering levels increases your problem-solving effectiveness and performance. This is highlighted in the problem-solving example in Section 1.6.
Applying OB Concepts to Identify the Right Problem Nothing causes more harm than solving the wrong problem. To illustrate, assume that many people in your department at work are quitting. What could be the reason? The person–situation distinction allows you to consider unique individual factors as well as situation factors that might be the source of the problem. And considering the levels of individual, group, and organization will allow you to look at each for possible causes.
For example: • Person factors. Do your departing coworkers have something in common? Is there
anything about their personalities that makes work difficult for them, such as a preference to work collaboratively rather than independently? What about their ages? Gender? Skills?
• Situation factors. Have there been changes in the job market, such as a sudden increase in employment opportunities at better wages? Have working conditions such as promotion opportunities become less attractive in your organization?
• Individual level. Has the job itself become boring and less meaningful or reward- ing to the employees who quit?
• Group/team level. Have there been any changes to the work group, including the manager, that might make work less satisfying? How does turnover in your depart- ment compare to that in other departments in the organization? Why?
• Organizational level. Has the organization changed ownership, or rewritten com- pany policies, or restructured such that the most desirable positions are now at the headquarters in another state?
By following this approach and asking these questions, you widen your focus and review a larger number of possible causes, increasing the likelihood you will identify the right problem. If you don’t quite follow this example, then have no fear. We analyze a turnover scenario in the last section of this chapter and provide a more detailed application. Stay tuned!
We now move on to the Organizing Framework for Understanding and Applying OB. This tool is not only helpful for learning OB, but it also serves as an essential tool for using OB to solve problems.
28 PART 1 Individual Behavior
Using your knowledge of the person–situation distinction and levels (individual, group/ team, and organizational), you are now ready to learn about the Organizing Framework for Understanding and Applying OB. We created this framework (see Figure 1.3) for two reasons. The first is to help you organize OB concepts and theories into three causally related buckets called Inputs, Processes, and Outcomes. This in turn leads to the second reason for creating the Organizing Framework. It helps you solve problems, thereby enhanc- ing your problem-solving skills and marketability to employers. We explain this application later in this section.
A Basic Version of the Organizing Framework The foundation of the Organizing Framework is a systems model wherein inputs influ- ence outcomes through processes. The person and situation factors are inputs. We’ve or- ganized processes and outcomes into the three levels of OB—individual, group/team, and organizational.
This framework implies that person and situation factors are the initial drivers of all outcomes that managers want to achieve. This is the case because inputs affect processes, and processes affect outcomes. And because events are dynamic and ongoing, many outcomes will in turn affect inputs and processes. See Figure 1.3. The relationships
1.5 THE ORGANIZING FRAMEWORK FOR UNDERSTANDING AND APPLYING OB
How can the Organizing Framework help me understand and apply OB knowledge to solve problems?
THE BIGGER PICTURE
You’re about to learn about the single best tool for understanding and applying OB’s many
concepts and tools—the Organizing Framework for Understanding and Applying OB. The
framework also helps tremendously in improving your problem-solving abilities at school,
work, and home. In the final section, we give you practical and effective guidance on how to
choose among alternate solutions to problems.
FIGURE 1.3 ORGANIZING FRAMEWORK FOR UNDERSTANDING AND APPLYING OB
© 2014 by Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without express permission of the authors.
INPUTS PROCESSES OUTCOMES
Personal Factors Situation Factors
Individual Level Group/Team Level Organizational Level
Individual Level Group/Team Level Organizational Level
29Making OB Work for Me CHAPTER 1
between outcomes at one point in time and inputs and processes at another are shown as feedback loops in the Organizing Framework (the black arrows at the bottom of the figure).
EXAMPLE A study of 111 people over one week showed that taking time away from work led employees to feel rested (an outcome) and to experience higher lev- els of work engagement (a process). Such breaks also enabled them to recover better during the workday, and this reenergized them for their remaining work (an input).59
As you work through this book you will notice that each chapter begins with a ver- sion of the Organizing Framework that helps introduce the concepts discussed in that particular chapter. Each chapter repeats the same version of the framework at the end as part of the chapter review. If you add up the content of all the chapters, you’ll end up with something that looks like the fully populated or complete Organizing Framework. We provide the complete version in the next section of this chapter. Not only is this framework a useful preview of all you will learn, but it also is an effective review tool for preparing for a comprehensive final exam.
By definition, frameworks (and models) are simplifications of reality; they neces- sarily exclude information. This means the complete Organizing Framework will not show every OB concept that might affect employee behavior and performance. But the basic elements of the framework will help you understand and apply any OB topic you encounter. The following OB in Action box illustrates the value of the Organizing Framework and its components—inputs, processes, and outcomes. Be sure to answer the “Your Thoughts?” questions; they will show you how to apply your new OB knowledge and tools.
Let’s now consider the details of the Organizing Framework and apply it to the 3-Step Problem-Solving Approach.
Using the Organizing Framework for Problem Solving You can use the Organizing Framework at all three steps of the problem-solving process to add rigor, intelligently apply your OB knowledge, and in turn improve your performance.
Step 1: Define the problem. Problems can be defined in terms of outcomes in the Organizing Framework, and these outcomes occur at three levels.
Step 2: Identify causes. Causes are often best thought of in terms of inputs (person or situation) or processes at various levels (individual, group/team, organizational).
Step 3: Make recommendations. Consider the most appropriate solutions using your OB knowledge and tools. Then map these onto the causes (inputs or processes).
Your ultimate problem-solving success will be determined by the effectiveness of your recommendation and resulting solution. So let’s discuss this next.
Selecting a Solution and Taking Action (if appropriate) Selecting solutions is both art and science. Some managers like to rely largely on intuition (discussed in Chap- ter 11) and experience. While these approaches can work, others use more analytical or systematic methods to select a solution.
EXAMPLE Intel has long been famous for its data-driven decision-making practices. When employees encounter and notify their managers of problems, it is common if not expected that managers automatically reply: “Call me when you’ve worked through your seven-step,” referring to a companywide problem-solving process.
30 PART 1 Individual Behavior
Whether it is the well-known candy they make (M&M’s, Snick- ers, Life Savers) or the cat and dog foods (Whiskas and Pedi- gree), life is indeed sweet for the employees of Mars. The Organiz- ing Framework can help us ex- plain and understand why the 75,000 employees feel they have it so good, and why the company again made the Fortune 100 Best Companies to Work For in 2015.
Inputs The environment at Mars lacks the perks touted by many tech companies— no Foosball tables, no free gourmet lunches, and no premier health clubs. More than this, some work practices are downright old school. For instance, all employ- ees, including the president, have to punch a time clock each day and are docked 10 percent of their pay for the day if late.
But what Mars may seem to lack in style it makes up for with its culture. For- mer President Paul S. Michaels explains how the company aligns its values and practices by asking: “Does it add value for the consumer to pay for marble floors and Picassos?” If it doesn’t, then the company doesn’t provide it. Employees seem to love the place and have very positive relationships at work; many families have three generations working at Mars. The culture seems to be one big family inter- ested in cats, dogs, and candy. At one facility more than 200 employees bring their dogs to work each day. (Leash rules apply.)
This family-type environment flows from the founding Mars family, which still tightly controls the company according to the “Five Principles of Mars”: quality, responsibility, mutuality, efficiency, and freedom. Employees can recite these prin- ciples and live them.
Processes While some practices seem frugal, the company reportedly awards bonuses of 10 to 100 percent of employees’ salaries. The company also invests heavily in the community via its Mars Volunteers and Mars Ambassadors pro- grams. In 2014, about 21,500 employees volunteered over 85,000 hours at local organizations!60
Outcomes Mars posts a very low turnover rate (5 percent), a sign that employ- ees are highly satisfied with their jobs. And the fact that the company has man- aged to grow consistently for decades and remain private is compelling evidence of its strong financial performance.61 For instance, it recently built its first new US chocolate factory in 35 years. It employs 200 people and produces 39 million M&Ms per day.62
1. What positive outcomes does Mars produce at the individual level? 2. What positive outcomes does Mars produce at the organizational level? 3. What inputs and processes help produce each of these outcomes?
Life Is Sweeter on Mars OB in Action
© Press Association/AP Photo
31Making OB Work for Me CHAPTER 1
Intel’s problem-solving process is so entrenched that employees use a common PowerPoint template to fill in and ultimately present the relevant details of their proposed solutions. (Intel illustrates an organizational-level process approach that is similar to the rational approach to decision making we’ll discuss in Chapter 11.)
Don’t Forget to Consider Constraints As a matter of practicality, most people lack the time, knowledge, or access to data to routinely follow such a rigorous procedure. Therefore, your selection most often requires you to consider various constraints—on time, money, your own authority, and information—that can occur at different levels. We close this chapter with practical pointers on how to select the best solution.
Applied Approaches to Selecting a Solution You can save time and hassle with the following practical advice from renowned problem- solving expert and professor Russell Ackoff. Ackoff recommends first deciding how complete a response you are looking for. Do you want the problem to be resolved, solved, or dissolved?
• Resolving problems is arguably the most common action managers take and sim- ply means choosing a satisfactory solution, one that works but is less than ideal. Putting on a “doughnut” or temporary spare tire fixes a flat, but it certainly is not ideal and is unlikely to last.
© Scott Carson/ZUMA Press, Inc/Alamy
32 PART 1 Individual Behavior
• Solving problems is the optimal or ideal response. For instance, you could buy a new, high-quality, full-size spare to keep in your trunk (not the typical doughnut or the “run-flats” that manufacturers frequently provide).
• Dissolving problems requires changing or eliminating the situation in which the problem occurs. Keeping with our example, the city you live in could build and utilize effective public transportation and thus remove the necessity of having cars (and tires) altogether.63
Making this decision first helps guide your choice among alternatives. It helps you decide what you need, whether it is realistic, and what level of effort and resources to use.
Basic Elements for Selecting an Effective Solution After deciding whether to resolve, solve, or dissolve your identified problem, you need to select the most effective solution. A problem-solving expert says: “The essence of suc- cessful problem solving is to be willing to consider real alternatives.”64 To help you choose among alternatives identified in Step 2, we distilled three common elements that will help you qualify the best solution:
1. Selection criteria. Identify the criteria for the decision you must make, such as its effect on: • Bottom-line profits. • You and classmates or coworkers. • Your organization’s reputation with customers or the community. • Your own values. • The ethical implications.
2. Consequences. Consider the consequences of each alternative, especially trade-offs between the pros and the cons, such as: • Who wins and who loses. • Ideal vs. practical options. • Perfection vs. excellence. • Superior vs. satisfactory results.
3. Choice process. Decide who will participate in choosing the solution. (If more than one person, agree on the method. Will you vote? Will the vote be public or secret? Unanimous or simple majority?): • You • Third party • Team
In every case, consider the necessary resources, including which people will be key sources of support for (and resistance to) your ultimate selection. Consider who can help and who can hurt your efforts—what’s in it for them?
Putting it all together, the OB knowledge and tools you’ll learn in this book will help tremendously in selecting and implementing your best solution given the situation you face. The final section of this chapter provides a preview of what you will learn in this book, along with an example application of the Organizing Framework and the 3-Step Problem-Solving Approach.
33Making OB Work for Me CHAPTER 1
We wrote this preview to serve three primary functions: (1) It is a sneak peek and fore- shadows all that you will learn in this book; (2) it illustrates how to use the Organizing Framework when solving problems with the 3-Step Problem Solving Approach; and (3) it serves as a review for a comprehensive final exam for this course.
We begin this section by briefly reviewing the 3-Step Problem-Solving Approach and the components of the Organizing Framework. We then apply these tools to an example problem-solving scenario. The purpose is to be a tutorial of how you are expected to apply your knowledge and these particular tools throughout the rest of the book.
The 3-Step Problem-Solving Approach This chapter began by showing you that common sense often is not common practice. We instead showed you how to think critically and add rigor and structure to your problem solving by using three steps, recapped as follows:
Step 1: Define the problem. To be an effective problem solver, you must define the problem accurately. It all starts here.
Step 2: Identify potential causes using OB concepts and theories. The many OB theories and concepts you will learn are extremely useful in helping identify the underlying causes of the problem you defined in Step 1.
Step 3: Make recommendations and (if appropriate) take action. Once you have identified the problem and its causes, you can plan and implement recommenda- tions, applying your OB knowledge and tools.
Improving your problem-solving abilities will lead to better performance for you, your team, and your organization. This is important given that problem solving is one of the most sought after skills of employers across jobs and industries.
The Organizing Framework Figure 1.4 illustrates a summary version of the Organizing Framework. It shows the OB concepts and theories you will learn and includes chapter references for finding details
How can I use my knowledge about OB to help me achieve professional and personal effectiveness?
THE BIGGER PICTURE
This final section of Chapter 1 provides a high-level overview of what you will learn in this
book, and it shows a summary Organizing Framework for Understanding and Applying OB.
A thorough application of the 3-Step Problem Solving Approach is also provided to illus-
trate its power and applicability.
1.6 PREVIEW AND APPLICATION OF WHAT I WILL LEARN
34 PART 1 Individual Behavior
INPUTS PROCESSES OUTCOMES
Personal Factors (associated chapters) Hard and soft skills: 1 • Ethical behavior: 1 • Values: 2 • Attitudes: 2 • Intelligence: 3 • Cognitive abilities: 3 • Personality: 3 • Core self-evaluations: 3 • Emotional intelligence: 3 • Stereotypes: 4 • Diversity: 4 • Motivation: 5, 6, 7 • Positive OB: 7 • Emotions: 3, 7 • Mindfulness: 7 • Psychological capital: 7 • Communication: 9 • Social media: 9 • Decision making: 11 • Creativity: 11 • Resistance to change: 16 Situation Factors • Ethical behavior of others:
1, 10, 12 • Leadership: 1, 8, 13 • Job design: 5 • Human resource policies,
practices, and procedures: 6, 9, 14
• Relationship quality: 8 • Decision making: 11 • Organization culture and
climate: 7, 10, 13, 14, 15 • Mentoring: 14 • Organizational design: 15 • Forces for change: 16 • Resistance to change
(coworker and organizational): 16
• Organizational mission and vision: 16
Individual Level (associated chapters) • Emotions: 3, 7 • Perceptions: 4, 6 • Attributions: 4 • Motivation: 5, 6, 7 • Job design: 5 • Performance management
practices: 6 • Communication: 7, 8, 9 • Trust: 8 • Decision making: 11, 15 • Creativity: 11 • Leadership: 1, 8, 13 • Mentoring: 14 Group/Team Level • Group/team dynamics:
3, 4, 8, 11, 14, 16 • Communication: 7, 8, 9 • Group roles and norms: 8 • Group development: 8 • Trust: 8 • Team effectiveness: 8 • Conflict and negotiation: 10 • Decision making: 11 • Creativity: 11 • Power, influence, and
politics: 12 • Structural and psychological
empowerment: 12 • Impression management: 12 • Organizational culture and
climate: 7, 10, 13, 14, 15 • Organizational socialization: 14 • Mentoring: 14 • Organizational design: 15 Organizational Level • Managing diversity: 4 • Human resource policies,
practices, and procedures: 6, 8, 14
• Communication: 7, 8, 9 • Organizational culture and
climate: 7, 10, 13, 14, 15 • Decision making: 11 • Creativity: 11 • Leadership: 1, 8, 13 • Organizational socialization: 14 • Organizational design: 15 • Leading and managing
change and stress: 16
Individual Level (associated chapters) • Task performance: all but 15 • Work attitudes: all but 11, 15 • Turnover: all but 11, 15 • Career outcomes:
1, 3, 4, 8, 10, 11, 12, 13, 14, 16 • Well-being/flourishing:
2, 3, 4, 7, 13, 16 • Citizenship behavior/
counterproductive behavior: 2, 5, 6, 7, 8, 10, 12, 13, 16
• Intrinsic and extrinsic motivation: 5
• Creativity: 6, 7, 8, 10, 11, 13, 15 • Physical health: 7 • Stress (physical and
emotional): 12, 15, 16 • Resistance to change: 15, 16 • Accidents: 16 • (Un)Ethical behavior: all but
3, 7, 15 Group/Team Level • Group/team performance: all