Communicating Effectively; Working In Groups And Teams - Fostering Creativity And Innovation; Decision Making

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Study Guide

Organizational Behavior By

Eric Swanson

About the Author

Eric Swanson has spent more than 20 years working in various corporations, including Unilever, Marketing Drive Worldwide, and CBS News. A graduate of Yale University and the Juilliard School, he is the author of ten books of fiction and nonfiction, including a New York Times bestseller, The Joy of Living. A former stage and film actor, he is currently Associate Director of Great Circle Productions, Inc., a 501 (c) (3) nonprofit organization dedicated to supporting and developing projects in the performing arts, literary and visual arts, and film/video arts.

Copyright © 2015 by Penn Foster, Inc.

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INSTRUCTIONS TO STUDENTS 1

LESSON ASSIGNMENTS 9

LESSON 1: ORGANIZATIONAL BEHAVIOR AND INDIVIDUAL CHARACTERISTICS 11

LESSON 2: PERCEPTION, MOTIVATION, ENGAGEMENT, AND STRESS MANAGEMENT 35

LESSON 3: FOSTERING CREATIVITY AND INNOVATION; DECISION MAKING 53

LESSON 4: COMMUNICATING EFFECTIVELY; WORKING IN GROUPS AND TEAMS 69

LESSON 5: MANAGING CONFLICT AND NEGOTIATION; LEADERSHIP 83

LESSON 6: ORGANIZATIONAL CONTEXT 97

SELF-CHECK ANSWERS 119

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INTRODUCTION Welcome to your course in organizational behavior! You’re about to embark on a course of study that can help you become familiar with the various factors that influence the behavior of individuals and groups within an organizational context. While this course explores many concepts and theo- ries of behavior, its focus is primarily practical, designed to provide you with the knowledge and skills to enhance your ability to function more effectively as a manager or leader in an organization.

This course examines key principles and challenges associ- ated with the evolving arena of business and organizational management. Its particular focus is on how people behave— as individuals and in groups—in organizational settings. Your course begins with a review of the ways in which previous generations of researchers, theorists, and business leaders have regarded management, as well as current trends in management theory and practice. As you proceed, you’ll explore a range of topics related to individual and group behavior, including

n The influence of culture, personality, emotions, and values

n Factors that shape perception

n The relationship between motivation and performance

n The importance of creativity and innovation

n Models and techniques for decision making

n Effective communication and team-building skills

n Varieties of leadership styles

n The role of power and politics within organizations

n The relationship between organizational structure and strategy

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Instructions to Students2

A crucial point to consider when approaching the study of organizational behavior is the consistent tension between an individual’s goals and motivations and those of the organiza- tion of which he or she is a member. To a certain extent, this tension exists in all groups, from families to multinational corporations. Personal habits and needs often conflict with the objectives of a larger group, which are to preserve order and direct individual behavior toward the benefit of the group as a whole.

A genuine examination of organizational behavior must con- sider the factors that influence individual behavior and those that shape organizational goals. To strike an optimal balance between individual motivations and the needs and goals of organizations, effective management requires a solid under- standing of both of these issues—along with the appropriate communication and leadership skills. Discovering and work- ing to sustain that balance is the principal aim of studying organizational behavior, and this course is designed to help you meet that challenge.

OBJECTIVES When you complete this course, you’ll be able to

n Differentiate between the main approaches to management, including the classical, humanistic, and positive organi- zational behavioral approaches

n Describe the differences between the roles of leaders and managers and explain the factors, including personal integrity, cultural mindset, social responsibility, and global sustainability, that affect the way they act

n Explain the various levels of culture and types of diver- sity and their influence on organizational structure and behavior, and demonstrate an understanding of Hall’s Cultural Context Framework, Hofstede’s Cultural Dimensions, and the GLOBE model

n Summarize the effects of self-awareness, personality, emotions, and values on individual behavior

Instructions to Students 3

n Explain the basic principles of human perception, including the attribution process and the influence of perceptual biases

n Through a command of the basic principles of need theories, expectancy theory, goal theory, equity theory, and reinforcement theory, describe the common models of appraising motivation

n Explain the relationship between engagement and motivation

n Describe the causes of, reactions to, and methods of managing stress

n Identify the steps of the creative process and the strategies and techniques that organizations and individuals can use to foster creativity and innovation

n Summarize approaches to decision making, the obstacles to making effective decisions, and common techniques used in decision making

n Explain the principles and processes of interpersonal and organizational communication through understand- ing different communication styles and ways to overcome communication barriers

n Identify the reasons organizations assemble teams and the characteristics of teams that affect performance

n Apply basic strategies for conflict management through understanding the sources and dynamics of interpersonal and organizational conflict

n Outline the characteristics of traditional and contemporary approaches to leadership

n Differentiate between the various sources of power for individuals and describe the relationship between politics and power within an organizational structure

n Describe the contextual strategic factors that influence organizations and identify the various kinds of organiza- tional structure

n Discuss the elements of organizational culture and com- pare various approaches to effecting organizational change

COURSE MATERIALS The following materials are part of this course:

1. This study guide, which contains an introduction to your course, plus

n A lesson assignments page, which outlines the study assignments

n Introductions to each assignment

n Self-checks and answers to help you assess your understanding of the material

2. Your course textbook, Organizational Behavior, which contains your assigned readings

YOUR TEXTBOOK If you were planning to visit a new city or country, you’d probably do some research to familiarize yourself with the place you’re visiting. In the same way, you might consider preparing for your course in organizational behavior as a journey into new territory. Your journey will likely be more enjoyable if you take some time now to get to know your ter- ritory. So, before you begin your study, spend some time looking through your textbook to become familiar with its content and layout.

The textbook for this course is Organizational Behavior, by Afsaneh Nahavandi, Robert B. Denhardt, Janet V. Denhardt, and Maria P. Aristigueta. Here are the key features of the text:

n Contents. The text includes two tables of contents: a Brief Contents on page xi and a Detailed Contents that begins on page xii. The Brief Contents, which presents part and chapter titles only, gives you a general idea of the main topics. The Detailed Contents offers a compre- hensive outline what’s covered in each chapter. It’s a good idea to read the Detailed Contents for each chapter before you begin to study it. In that way, you’ll know exactly what you’ll be studying in the related assignment.

Instructions to Students4

Instructions to Students 5

n Preface. The authors’ preface on pages xvii–xxiii gives an overall view of their approach to organizational behavior. It also helps you understand their purpose in writing the book, the themes on which they focus, and their methods of organizing the material. It also highlights the special features of the textbook and related online materials, which will offer you an idea of what you’ll encounter in your assigned readings.

n Chapter organization and features. After skimming through your textbook, turn to page 1 and begin reading Chapter 1, “Introduction to Organizational Behavior.” You’ll see on page 2 that the chapter begins with a set of learn- ing outcomes, which serve as objectives for the learning goals associated with each chapter. In this and subsequent chapters, you should go over the learning objectives both before and after you complete your assigned reading. Also on page 2, you’ll find an opening case, which pres- ents a real-world issue directly related to the material covered in the chapter. Page 4 then discusses the case and how it relates to the material that follows.

The main body of the chapter begins with a major head- ing, followed by secondary headings and subheadings. These headings form an outline of the chapter topics listed in the Detailed Contents. Whether or not you cus- tomarily use an outlining method as a learning device, your understanding of the material can be enhanced by studying the logical organization of headings and sub- headings.

As you begin studying the material in your textbook, keep an eye out for the figures and tables the authors have provided. Because they illustrate and explain mat- ters that can’t be accomplished as easily in prose, they’re essential for your comprehension. For example, Table 1.1 on page 11 offers a succinct outline of what managers do, while Figure 1.3 on page 12 provides a table of sev- eral kinds of managerial roles.

Each chapter also includes boxed features to help in your learning, including “What Do You Think?” boxes that pose thought-provoking questions. On page 24, you’ll

Instructions to Students6

see a “Creativity and Change” box, which offers insights into the arguments regarding social responsibility in business—“doing well” vs. “doing good”—and poses ques- tions based on what you’ve read. Self-Assessments are also included in many chapters, and completing each of them will help you better understand the material—and yourself.

At the end of each chapter, you’ll find several important features. (For Chapter 1, these are on pages 26–27.) The Summary offers a recap of the chapter’s main concepts. Key Terms provides an excellent study aid of the special- ized vocabulary presented in the chapter. After you’ve read the chapter, go over the terms to see if you can define or explain them. If you can’t, you’ll know that you still have some work to do to master the chapter. Following the list of Key Terms are several Exercises, which give you a chance to apply what you’re learning. Each chapter ends with one or more Cases with ques- tions, and several pages of Endnotes, which point toward resources for further exploration.

n Glossary. The Glossary (pages 505–514) can be an invaluable aid in your course work. When you’re in doubt about the meaning of a term and you can’t easily locate it in the body of the text, turn to the glossary.

n Indexes. Your textbook includes an Author Index (pages 517–526) and a Subject Index (pages 527–540). Use these to quickly locate textbook information.

SUPPLEMENTAL MATERIALS It’s a good idea to prepare and maintain a course notebook. If you’re comfortable using computer–based note programs, great; otherwise, a standard three-ring binder is fine. Use your notebook for responding to exercises assigned from your text, for collecting pertinent newspaper or magazine articles, and for writing down your opinions on the ideas and concepts you’re studying.

Instructions to Students 7

Keep a standard collegiate dictionary handy while you study. Formal learning requires accumulating, understanding, and integrating new vocabulary. Particularly in a college-level course, you should expect to be challenged from time to time by the meanings of words you’re not familiar with.

YOUR STUDY GUIDE AND STUDY STRATEGIES This study guide is intended to help you manage your approach to the material in your textbook and get more out of it. It’s not a substitute for reading your text. The material for this course is divided into six lessons. Each lesson contains two or more assignments. Here’s a good procedure to follow for each lesson:

1. In this study guide, read the introduction to the assignments.

2. For each assignment, read the required sections in the textbook. Keep your study guide handy as you read. If the study guide refers to a specific figure or table in the textbook, pay attention to that item.

3. Complete the exercises at the end of each chapter. As answers can vary, some will not be provided. Do not submit the results for grading.

4. After you read the material in the textbook, return to this study guide and use the assignment summaries to quiz yourself.

5. When you feel confident that you understand the mate- rial for an assignment, complete the self-check for that assignment. The self-checks are included in this study guide. Do not submit your answers to the self-checks.

6. When you’ve completed all the assignments for a lesson, review the material and then complete the examination for that lesson.

7. Complete each lesson in this manner.

To derive the greatest benefit from your course in organizational behavior, apply established methods to facilitate your learning.

1. Set aside a regular time for reading and studying, and mark your study schedule on a calendar. Check off assignments as you complete them to track your progress, and adjust your schedule if necessary.

2. Read the material of each textbook assignment twice. Few people comprehend all the details on the first reading. During your first reading, aim to achieve an overview that connects what you’re reading in your text to what you’ve read in the guide.

3. Try discussing with a friend or relative what you’ve learned in reading a chapter or assignment. Teaching others is a highly effective way of reinforcing your understanding of the material you’ve learned.

4. Create an outline of the chapters in the textbook. The process of outlining is a great technique for committing material to long-term memory.

5. Resist the temptation to skip over figures or tables. In fact, when you get to a table or figure in the text, take a few moments (or more) to study it until you thoroughly under- stand the point or points.

6. Allow plenty of time for completing the self-checks. They’re designed to help you measure your progress, identify weak- nesses in your understanding, and guide you to the areas where you need further study.

7. Finally, give yourself credit for completing each assignment. This may seem silly, but it isn’t. Your work and self-disci- pline will take you through this course. Give yourself some kind of reward as you complete each assignment.

Now you’re ready to begin Lesson 1. With concentration and determination, you’ll be on your way to acquiring valuable busi- ness understanding and skills.

Instructions to Students8

Remember to check your student portal regularly. Your instructor may

post additional resources that you can access to enhance your learn-

ing experience.

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Lesson 1: Organizational Behavior and Individual Characteristics For: Read in the Read in the study guide: textbook:

Assignment 1 Pages 11–19 Chapter 1

Assignment 2 Pages 20–26 Chapter 2

Assignment 3 Pages 26–33 Chapter 3

Examination 500472 Material in Lesson 1

Lesson 2: Perception, Motivation, Engagement, and Stress Management For: Read in the Read in the study guide: textbook:

Assignment 4 Pages 35–41 Chapter 4

Assignment 5 Pages 41–47 Chapter 5

Assignment 6 Pages 47–52 Chapter 6

Examination 500473 Material in Lesson 2

Lesson 3: Fostering Creativity and Innovation; Decision Making For: Read in the Read in the study guide: textbook:

Assignment 7 Pages 53–59 Chapter 7

Assignment 8 Pages 60–67 Chapter 8

Examination 500474 Material in Lesson 3

Lesson 4: Communicating Effectively; Working in Groups and Teams For: Read in the Read in the study guide: textbook:

Assignment 9 Pages 69–75 Chapter 9

Assignment 10 Pages 76–82 Chapter 10

Examination 500475 Material in Lesson 4

Lesson Assignments10

Lesson 5: Managing Conflict and Negotiation; Leadership For: Read in the Read in the study guide: textbook:

Assignment 11 Pages 83–90 Chapter 11

Assignment 12 Pages 91–96 Chapter 12

Examination 500476 Material in Lesson 5

Lesson 6: Organizational Context For: Read in the Read in the study guide: textbook:

Assignment 13 Pages 97–103 Chapter 13

Assignment 14 Pages 103–109 Chapter 14

Assignment 15 Pages 110–117 Chapter 15

Examination 500477 Material in Lesson 6

Note: To access and complete any of the examinations for this study

guide, click on the appropriate Take Exam icon on your student portal.

You should not have to enter the examination numbers. These numbers

are for reference only if you have reason to contact Student CARE.

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Organizational Behavior and Individual Characteristics

ASSIGNMENT 1: INTRODUCTION TO ORGANIZATIONAL BEHAVIOR: HISTORY, TRENDS, AND ETHICS Read the following assignment in your study guide. Then, read Chapter 1 in your textbook.

What Is Organizational Behavior? Chapter 1 opens with a fascinating hypothetical case, in which you’re asked to imagine that you’ve been hired by an organization to turn around a department that has been performing terribly. As you plunge in, you discover a number of challenges that have contributed to the problem. Staff members are discouraged, unmotivated, and resentful, while other divisions within the organization aren’t providing the resources or communication necessary for the department to function effectively. Your mission is to work with members of the department, individually and in groups, as well as with members of other departments to lead your department to success.

That, in a nutshell, is what the field of organizational behavior is all about: gaining insight into the factors that influence human behavior and applying that understanding in an organizational setting—whether it’s a giant corporation, small startup, gov- ernment agency, or nonprofit group. The goal, of course, is to attain skills necessary to manage that behavior in a way that enhances the performance of the organization as a whole as well as the individual members.

Human behavior is complex, and when individuals come together in an organization, the complexities multiply. So, when approaching organizational behavior, a number of questions need to be considered.

Organizational Behavior12

What motivates people? What shapes their perceptions? What dynamics influence group behavior? How do individuals and groups make decisions? How does the structure of an organi- zation affect communication and performance? In what ways do office politics and personal power help or hamper?

Organizational behavior examines these questions through various levels of analysis, as depicted in Figure 1.1. The first level is that of the individual: in particular, differences in per- sonality, perception, motivation, and learning. The second level examines the interactions among small groups or teams, including the ways in which they communicate, build trust and unity, and make decisions. The next level analyzes behavior among people in large-scale groups, ranging from departments— such as human resources or marketing—all the way up to the structure and dynamics of the whole organization.

The textbook authors introduce a fourth level of analysis: an examination of the relationship between an organization and the larger social and cultural contexts in which it functions. The relationship between an organization and the community it serves is a factor for many businesses, large and small. However, it’s an area that poses special challenges for large, multinational corporations operating in an increasingly glob- alized arena. For example, labor laws differ from country to country, and cultural norms and expectations often vary significantly, as well.

After you finish reading this introductory section of your text- book, complete Self-Assessment 1.1 on page 6. When you’ve finished reading the material in the rest of Chapter 1, return to Self-Assessment 1.1 to see if the answers to your questions have changed.

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A Brief History of Organizational Behavior For centuries, scholars of various fields have debated the subject of leadership, a situation in which one or more members of a group move to foster change within in a group or organization. About a hundred years ago, a more systematic approach toward organizational behavior emerged. It has evolved much since then, and continues to do so as organizations face new chal- lenges. Let’s take a look at some of the major movements.

n The Classical Period, which dominated the early part of the 20th century, was typified by an approach referred to as scientific management. Developed and popularized by Frederick Taylor, it focused on implementing scientific processes that compelled workers to become more pro- ductive by obeying orders and commands from supervisors and other managers.

n The Humanistic Period, which began to emerge in the late 1920s, grew out of a study of worker productivity that focused primarily on the Hawthorne Works factory in Chicago. Among their conclusions, researchers discovered that workers behave differently when they’re observed—a phenomenon that has come to be known as the Hawthorne effect. Researchers also found that human relationships significantly affected workers’ behavior. This finding opened the door to advancing the study of the factors influencing human behavior as an important aspect of understanding organizational behavior. It also led to the development of the concept of formal organization, which emphasized the need for managers to consciously coordinate cooperation between members of divisions or subunits within an organization.

Further research offered various theories about human behavior in organizational settings. Douglas MacGregor, a psychologist and professor of management at the Massachusetts Institute of Technology (MIT), developed two now well-known theories about human behavior in the workplace. Theory X represented the classical perspec- tive, holding that workers were lazy and motivated only by money. Theory Y, representing a more humanistic

Organizational Behavior14

view, emphasized the importance of worker engagement, creativity, and satisfaction in performing well as key motivators.

An understanding of organizational principles was also furthered by the German philosopher Max Weber, who offered a description of bureaucracy, the hierarchical structure of organizations.

n Modern organizational behavior research and application has relied heavily on contributions from a variety of fields, including sociology, psychology, political science, and anthropology. More recently, social psychologists specializ- ing in management theory have offered new perspectives on the importance of creativity, adaptation, and engage- ment in management styles.

Current Trends in Organizational Behavior More recently, contributions from the field of social psychology have led to the implementation in many organizations of an approach known as positive organizational behavior. Rather than focusing on shortcomings and problems among workers, the positive approach focuses on developing strengths and cultivating environments that foster appreciation, hope, trust, resilience, and creativity. Meanwhile, new research in neuro- science has contributed to a deeper understanding of the role of the brain in determining why some people respond to stress differently than others and the effects of emotions and unconscious motivations on behavior.

People Skills in Management In today’s rapidly changing organizational environment, the historical bureaucratic model is becoming outmoded, unable to adapt quickly enough to the challenges of globalization and online communications. As a result, new approaches to engaging with workers are required by management and leadership teams.

Lesson 1 15

Traditionally, managers and leaders were assumed to fill dif- ferent, sometimes conflicting, functions with an organization. Managers’ roles were seen as confined to solving problems and ensuring efficiency throughout the organization. Leaders were often considered agents of change who accepted a degree of risk to move an organization forward. More recently, researchers and business executives alike have come to view the roles of managers and leaders as complementary. To balance efficiency against creativity and change, both are needed. To help you understand why this is so, let’s take a look at what managers and leaders do.

Functionally, a manager’s job involves five essential tasks, summarized in Table 1.1 on page 11 of your textbook. These tasks include

1. Setting objectives, which means establishing the goals of the organization or a department

2. Organizing tasks in a way that will fulfill those goals

3. Motivating workers to accomplish their particular tasks

4. Monitoring and measuring performance

5. Developing workers, through providing opportunities to enhance their skills, talents, and productivity

Research conducted by Henry Mintzberg beginning in the 1960s suggested that the description of these tasks failed to capture the complexities faced by managers in completing them. Accordingly, he revised the description in a way that he believed more authentically captured what managers do. This description is summarized in Table 1.2 on page 12. Mintzberg and his colleagues later began to define different types of managerial roles, which varied according to whether their function was interpersonal, informational, or decision making (see Figure 1.3 on page 12).

Mintzberg and others also developed a description of managerial mindsets, summarized in Table 1.3 on page 13, which indi- cates the ways in which managers must balance action with reflection about their actions.

Organizational Behavior16

During the latter part of the 20th century, the U.S. Office of Personnel Management conducted a study aimed at identify- ing the skills required by managers to achieve success. These skills, described as functions, are summarized in Table 1.4 on page 14.

In many ways, the roles of leaders and managers intersect in most contemporary organizations. Leaders are actively involved in developing goals, monitoring performance, and communi- cating with people within the organization. But they’re also deeply involved in providing opportunities for engaging workers in decision making, fostering creativity, and communicating with individuals and groups outside the organization. Perhaps most significantly, they’re responsible for shaping the overall culture of an organization, particularly in terms of setting moral and ethical standards and exemplifying those standards in their own behavior. Figure 1.4 on page 15 summarizes a leader’s tasks in shaping organizational culture.

Creativity and Change in a Global Society Over recent decades, the environment in which organiza- tions function has altered dramatically. Much of this change has been driven by technological advances. International financial agreements, including trade and investment deals, shifts in labor practices and immigration laws, the immediacy and availability of knowledge, and new platforms for commu- nication have also played enormous roles. This shift toward globalization—the interconnectedness and integration of dif- ferent cultures and societies—has many positive aspects.

However, it also brings a number of risks, complexities, and uncertainties to organizations, as the environment for con- ducting many sorts of business shifts from a stable situation to one that some social scientists refer to as fluid or liquid.

Managers and leaders need to respond rapidly and nimbly to changes brought about by globalization and liquid modernity. They must be able to revamp approaches to competition, supply chain, trade, communication, employee development, customer management, and decision making—balancing innovation against risk. Accomplishing this feat requires creativity,

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which a recent study based on interviews with more than a thousand senior executives around the world has identified as the single most important attribute for leaders.

The Ethical Environment Globalization and the rapid increase in the flow of information and communication pose additional challenges. Organizations, their leaders, and managers are exposed to greater scrutiny than ever before. Particularly in the face of the recent global recession, the issue of personal integrity—the capacity of leaders to make ethical, morally sound business choices—has assumed a new relevance. In the wake of investigations, demonstrations, and lawsuits, some organizations and politi- cal institutions have begun to implement changes in their decision-making processes, although it remains to be seen whether these changes are genuine or merely cosmetic.

Other sensitivities have also assumed greater importance in recent years. A renewed emphasis on workforce diversity— hiring practices that more accurately represent the social and cultural environment in which an organization functions— recognizes the competitive and creative advantages of adding workers who bring a range of perspectives and experience to an organization. Concerns about diversity extend beyond the workplace, however; as many organizations expand interna- tionally, they need to take into account the cultural sensitivities, customs, and practices of different countries in which they operate.

Additionally, many organizations are investing in programs and tools that foster corporate social responsibility, nurturing projects to meet some of the social needs of the communities they serve. Increasingly vocal concerns about environmental challenges have also nudged many organizations to adapt their business practices to promote sustainability, taking into account the effects of manufacturing and other processes on future generations.

Organizational Behavior18

Self-Check 1 At the end of each section of Organizational Behavior, you’ll be asked to pause and

check your understanding of what you’ve just read by completing a “Self-Check” exercise.

Answering these questions will help you review what you’ve studied so far. Please complete

Self-Check 1 now.

1. List the four levels of analysis in organizational behavior.

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

2. Identify the issues examined in small group analysis.

__________________________________________________________

__________________________________________________________

__________________________________________________________

3. During the classical period of management in the early 20th century, employee motivation

was based on patterns of _______ and fear of _______.

4. Describe the Hawthorne effect.

__________________________________________________________

__________________________________________________________

__________________________________________________________

5. According to Abraham Zaleznik, _______ are concerned with problem solving and getting

people to operate more efficiently while _______ are neither bound to structure nor to

existing goals.

(Continued)

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Self-Check 1 6. Identify the four managerial roles associated with decision making.

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

7. List the four areas in which a leader functions to shape organizational culture.

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

8. _______, _______, and _______ are three intricately related phenomena that define our

global society today.

9. _______ is an approach to organizational behavior that emphasizes strength over weak-

nesses.

10. The term _______ refers to companies going beyond their bottom line and economic interests

to engage in activities that include environmental sustainability.

Check your answers with those on page 119.

Organizational Behavior20

ASSIGNMENT 2: CULTURE AND DIVERSITY Read the following assignment in your study guide. Then, read Chapter 2 in your textbook.

What is Culture and Why Does It Matter? Chapter 1 introduced issues related to culture and diversity, and the roles they play in determining decisions that organizations must consider in today’s global environment. Chapter 2 takes a deeper look at the importance of understanding culture. It also examines both the behavioral effects and the legal considera- tions of cultivating diversity in the workplace. Additionally, Chapter 2 discusses the benefits of adopting a comprehensive understanding of cultural differences and of taking steps to foster a diverse workforce.

The term culture is broadly defined as “a set of beliefs and values shared by members of a given group.” Because these beliefs and values are passed down from one generation to the next— through behaviors, laws, family and social expectations, and so on, culture, in this broad sense tends to exhibit a certain degree of permanence. Consider, for example, the commitment to certain principles of democracy and the belief in exception- alism in American culture. At the same time, culture exhibits a dynamic dimension, a capacity to adapt and evolve over time as new ideas and values are accepted and integrated. Again, looking at American culture, you can see a number of sweeping changes that have occurred since the civil rights movement began in the late 1950s.

Lesson 1 21

Peering more closely at the general description of culture, we can distinguish three different levels, which are depicted in Figure 2.2 on page 39 as a set of intersecting zones:

n National culture includes the values and belief systems shared by people within a nation.

n Ethnic or group cultures, sometimes referred to as subcultures, refers to the values, beliefs, and traditions held by smaller, often ethnicallydefined groups in a nation. Nations that embrace a wide range of subcultures are commonly referred to as heterogeneous, while nations in which few subcultures are represented are often referred to as homogeneous.

n Organizational culture refers to the unique values and norms that develop over time within an organization.

Understanding the effects of culture is a vital aspect of under- standing human behavior. However, because our exposure to different cultures and subcultures is often short-term or casual, our comprehension of the core values and beliefs of any cul- ture is typically limited to what we can readily observe—what some people refer to as the cultural iceberg. To compensate for our lack of deeper understanding, social scientists and other experts rely on research-based models known as sophisticated stereotypes to provide somewhat more reliable generalizations about the influence of culture on behavior.

Diversity in Today’s Workplace The sheer variety of experiences and backgrounds that shape people’s beliefs, attitudes, abilities, and so on repre- sents a tremendous degree of variation, or cultural diversity. To understand diversity and its effects on behavior a little better, social scientists and other researchers classify two different dimensions. Primary dimensions of diversity refer to obvious and constant factors, such as gender and ethnicity. Secondary dimensions of diversity refer to aspects that may change over time, such as marital status or religious affiliation.

As mentioned in Chapter 1, diversity in the workforce can offer tremendous advantages for creative approaches to decision- making, problem-solving, and group behavior. A potential challenge for managers may arise, however, because group

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members who share similar cultural or experiential backgrounds can form tight, cohesive groups, which may provoke conflicts within the wider organization.

One must also consider legal and social issues to in managing diversity in the workplace. In the United States, for example, equal employment opportunity legislation prohibits private employers, state and local governments, educational institutions, employment agencies, and labor organizations from job discrim- ination based on factors including race, religion, age, gender, disability, or marital status. In addition to these factors, employers holding federal contracts or subcontracts are required to follow a policy of affirmative action, a strategy designed to increase the hiring of employees who have suffered discrimination in the past.

Despite efforts to cultivate greater diversity in the workplace, many challenges remain. Your textbook explores two of these areas in detail. The first is gender diversity, an issue of par- ticular concern for women. Although women currently make up 47% of the workforce in the United States, they hold far less of a percentage of leadership roles in organizations. Table 2.4 on page 45 summarizes some of the factors that contribute to gender inequality.

A different set of challenges arises in respect to generational diversity, a term that describes a workforce that includes members of different generations. At this point in American history, for example, the labor pool includes five distinct gen- erations of workers, ranging from those in their 60s to those in their late teens and 20s. Broadly speaking, members of each group have been influenced by widely differing social and cul- tural experiences and are consequently motivated by different values and beliefs. Among the challenges involved in managing generational diversity are discovering the means to engage generationally distinct workers, manage conflicts that may arise, and create structures and tools to facilitate collaboration.

National Culture Especially in today’s increasingly global business environment, managers must understand the cultures of nations with which their organization does business. In some cases, this under- standing may be cultivated by rotating managers into different

Lesson 1 23

branches of an organization around the world. Another method is to examine the research conducted into the particular ways in which various nations conduct business, based on their cultural norms and traditions, a classification often referred to as national organizational heritage.

Over the past few decades, researchers have developed several frameworks for understanding national culture. Anthropologist and cross-cultural researcher Edward T. Hall and colleagues classified cultural communication modes according to context— the verbal and non-verbal signals and situational elements that convey information. In high-context cultures, nonverbal signals (such as tone of voice and body language) and situational variables (such as status and history of past communications) play a large role in communication. In low-context cultures, communication is more often accomplished through overt, specific verbal or written messages.

Dutch social psychologist (and former IBM manager) Geert Hofstede promoted a system of classifying cultures based on five factors or dimensions. Summarized in Table 2.6 on page 53, these dimensions are as follows:

n Individualism—the extent to which people rely on themselves and focus on individual achievement

n Power distance—the degree to which people consent to uneven divisions of power

n Uncertainty avoidance—the degree to which a culture can accept ambiguity

n Masculinity—the degree to which a culture values assertiveness and ambition

n Time orientation—a culture’s emphasis on past, present, or future

Extending Hofstede’s analysis, Robert J. House of the Wharton School of the University of Pennsylvania, together with several colleagues, developed a model of cross-cultural differences and leadership styles known as Global Leadership and Organizational Behavior Effectiveness (GLOBE). Summarized in Table 2.7 on page 55, GLOBE consists of nine dimensions. Each describes certain cultural characteristics and ranks certain countries according to their prevalence. The model further uses the

Organizational Behavior24

dimensions and rankings to identify the ways in which cul- tural dimensions are likely to influence leadership style and organizational structure and behavior.

Culture and Individual Behavior Of course, culture—whether national, group, generational, or even organizational—plays a large role in shaping how we define ourselves and our relationships, as well as how we think, feel, and behave. As mentioned in the opening definition, culture transmits values, the ideas, goals, or things that we feel are worthy of respect, attention, or attainment. Cultures also transmit beliefs, the set of perceptions and expectations of the way things are. Attitudes, our tendencies to think and feel in certain ways—about work or possessions, for instance— are also shaped in part by culture. These three aspects taken together ultimately influence our behavior. If, for example, a culture places a high value on material goods, that typically leads to seeking the means to achieve them—usually through engaging in long hours of hard study and work!

Developing a Cultural Mindset Today, interacting with people from different cultures and with organizations and governments operating in different countries is becoming commonplace. To successfully manage these interactions, it’s essential to consider cultural differences in terms of decision making, communication, and behavior. Such a perspective is commonly referred to as a cultural mindset. As summarized in Figure 2.8, three important com- ponents contribute to developing a multicultural mindset:

n Cognition—paying attention to your own culture and its influence, recognizing and respecting other cultures, and incorporating differences in terms of thinking and decision making

n Behavior—assuming a proactive approach to addressing and managing cultural differences

n Skills—learning new skills and competencies to work with other cultures, and recognizing the opportunities offered by a different cultural perspective

Lesson 1 25

Managers and leaders who develop and maintain a cultural mindset exert a profound, positive effect on organizational culture. Through their decisions, communications, policies, personal behavior, as well as through instituting training and education programs, they shape the overall organizational struc- ture in ways that stimulate creativity and enhance productivity. Promoting diversity and multiculturalism throughout an organization cultivates a respectful, inclusive, and harmo- nious environment, which in turn improves employee satisfaction and retention.

Self-Check 2 1. Culture is a set of _______ shared by members of a given group, which lead to patterns of

behavior that are _______ from one member to another.

2. The three levels of culture are

a. international, national, and regional.

b. pervasive, dynamic, and stable.

c. national, ethnic or group, and organizational.

d. autonomous, homogeneous, and assertive.

3. A culture that includes many subcultures is said to be _______.

4. The visible and stable aspects of a person, such as gender or ethnicity, are referred to

by the term _______.

5. Women often face _______, an invisible barrier to attaining the highest levels of

organizational management.

a. a glass ceiling c. generational discrimination

b. sexual harassment d. millennialism

6. Members of _______ cultures rely heavily on nonverbal cues and situational factors to

communicate with others and understand the world around them.

(Continued)

Organizational Behavior26

ASSIGNMENT 3: SELF-AWARENESS, PERSONALITY, EMOTIONS, AND VALUES Read the following assignment in your study guide. Then, read Chapter 3 in your textbook.

Understanding Individual Differences What makes individuals unique? One framework for answer- ing this question is the interactionist view, which proposes that individual differences arise through the interaction of hereditary and environmental influences. Heredity includes

Self-Check 2 7. Which of the following is not one of the five cultural dimensions proposed by Geert Hofstede?

a. Individualism c. Masculinity

b. Power distance d. Femininity

8. _______, one of the nine GLOBE dimensions, describes the extent to which a culture depends

on social norms and rules to minimize unpredictability.

a. Assertiveness c. Uncertainty avoidance

b. Power distance d. Humane orientation

9. According to the GLOBE model, which three countries rank highest in the dimension of

performance orientation?

__________________________________________________________

__________________________________________________________

10. A _______ is a way of thinking that allows the individual to be aware of and open to culture

and how it affects our own and others’ thinking and behaviors.

a. cultural mindset c. multicultural competency

b. diversity orientation d. nondiscriminatory perspective

Check your answers with those on page 119.

Lesson 1 27

factors such as an individual’s gene pool, gender, race, and ethnic background. Environmental influences include physical location (that is, the physical characteristics of the place or places we were raised and live), parents, culture, religion, education, and friends.

As summarized in Figure 3.1 on page 74, the interaction of hereditary and environmental influences shapes several key individual characteristics:

n Skills—talents acquired and developed in relation to accomplishing specific tasks

n Abilities—natural talents to accomplish mental or physical tasks (also known as aptitude)

n Personality—the set of psychological traits that make each person unique, which, though capable of evolving, tend to remain stable over time and across situations

n Values—enduring beliefs and preferences about what is meaningful and desirable

The particular combination of individual characteristics influences our behavior both inside and outside work situations—though it’s rarely possible to trace behavior to a single characteristic. It’s important to bear in mind, too, that situations can also affect behavior. Situational factors, in particular, can play a significant role in our responses to emotional challenges, real or perceived threats to our security, self-image, or self-worth. Many people respond to such challenges in the workplace by trying to change or control other people’s behavior; but the hard truth is that we can really control only our own responses.

Key to recognizing this truth, as well as understanding our own behavior is self-awareness, a characteristic that in many ways distinguishes a great manager or leader from a mediocre one. Self-awareness includes not only knowledge of one’s own characteristics, but also a willingness to reach out to others who balance your strengths and weaknesses and to invest the effort in acquiring skills necessary to function effectively in a management role.

Organizational Behavior28

Skills and Abilities In general, the skills that managers need to acquire and develop are divided into three categories, as summarized in Table 3.1 on page 78:

n Technical—skills related to job processes, methods, tools, and techniques

n Interpersonal—communication, negotiation, conflict management, and team- and relationship-building skills

n Conceptual—problem-solving and decision-making skills, as well as the capacity for creativity and logical thinking

Unfortunately, acquiring and developing these different skill sets alone isn’t always sufficient or even possible if an individual lacks the aptitude or inherent ability to carry out managerial functions. While a certain amount of training and experience can bestow a measure of technical proficiency, some individ- uals, for example, are just not people persons. They lack the necessary self-awareness and capacity to recognize and adjust to the emotional and behavioral aspects of the people they’re asked to manage.

Emotions Effective leadership and management rely on recognizing and appreciating the effect of emotions on our own and others’ reactions, a capacity referred to as emotional intelligence. Although intelligence is usually associated with cognitive abilities, emotional intelligence refers to the ability to distin- guish among different emotional states and apply that ability to social and interpersonal interactions.

Emotional intelligence is understood to include four key components:

1. Self-management—the ability to manage your own moods and behavior while enthusiastically and persistently pur- suing objectives

2. Self-awareness—(touched upon earlier in Chapter 3) the capacity to identify one’s own moods and emotions as well as their effects on other people

Lesson 1 29

3. Social awareness—the capacity to recognize and respond appropriately to the emotional characteristics of others

4. Social skills—similar to the interpersonal skills described earlier in Chapter 3; the ability to communicate effectively, develop and maintain relationships, build and lead teams, and discover commonalities among individuals and groups

Developing emotional intelligence is especially important for managers, because the diverse situations and demands of the workplace provoke a wide range of emotional responses. In fact, emotions are so intertwined with behavior in the workplace that researchers have introduced a new term, emotional labor, to describe the activity involved in expressing emotions in a way that’s consistent with the needs and policies of an organization— a consideration that’s particularly critical for service providers and managers. However, managers do need to recognize that when they themselves or the people they manage are required to project an emotion that’s different from what they’re actually feeling—a situation known as emotional dissonance—it can sometimes affect their performance, energy, or other aspects of behavior.

Personality Traits Like emotions, personality traits also affect individual behavior, and managers need to cultivate an awareness of their own traits as well as understand those of the employees they work with. One of the more commonly employed frameworks for describing personality traits is the Myers-Briggs Type Indicator (MBTI), a questionnaire-based assessment derived from the work of Swiss psychologist Carl Jung. Jung’s work on personality examined our information processing, either through senses or through intuition; our personal orientation, either toward the external world (extroversion) or toward the inner world (introversion); and our mode of decision making, either through judgment or perception.

A summary of several of the MBTI groupings is in Figure 3.4 on page 84. One of the significant insights offered by the MBTI is that people with different personality types can view the same situation in completely different ways. Further analysis indicates that some personality types adapt to certain tasks

Organizational Behavior30

more easily than others, and that different personality types can complement each other by working together to compensate for their differences.

Another framework developed by psychologists and other researchers is known as the Big Five dimensions, which classifies traits into five personality traits that have special relevance for interacting in the workplace. These dimensions, summarized in Table 3.3 on page 85, are conscientiousness, extraversion/ introversion, openness to experience, emotional stability, and agreeableness.

Your textbook also discusses two other aspects of personality that aren’t included in the MBTI or the Big Five. The first is narcissism, which is generally described in terms of arrogance, grandiosity, a sense of entitlement, and an inability to empathize with others—characteristics that can be destructive and disrup- tive. Psychologists have identified a positive form of narcissism, however, in which self-confidence and positive self-esteem can actually contribute to being an effective and influential leader. The other personality type, known as a proactive personality, tends to see opportunities and take initiative and is more open to creativity and change.

Values The last of the four main individual characteristics identified by the interactionist view is values, defined earlier as enduring beliefs and preferences about what is meaningful and desirable. Values may be divided into two types. Instrumental values define the way we conduct ourselves and the means we choose for achieving a goal. Terminal values represent the goals or states we wish to achieve.

Our values tend to mature over time, a process described by social psychologist Lawrence Kohlberg. His model of moral development, summarized in Figure 3.5 on page 91, identifies three levels of development. At the earliest, preconventional level, our values are based primarily on fulfilling personal needs. As we mature, we reach the second, conventional level, at which our values grow to conform to social and cultural standards. At the final, postconventional level (which Kohlberg argues few people achieve), our values are based on internalized principles.

Lesson 1 31

Another approach to understanding values was developed by William Reddin, a British-born researcher, consultant and author. He developed a model of six distinct value orientations, summarized in Table 3.5 on page 91. Understanding one’s value orientation can have an enormous effect on choosing a career and can also assist in articulating one’s values in a management or leadership position.

Developing Self-Awareness As mentioned at the outset of Chapter 3, developing self- awareness is a crucial aspect of effective management and leadership, offering insight into your own behavior, a deeper understanding of how others perceive you, and uncovering opportunities for further development and improvement. Your textbook describes several steps you can take to cultivate self-awareness, including

n Reflection—developing a personal narrative about your personality, your values, and goals

n Learning from experience

n Paying attention to feedback from others

n Self-disclosure—revealing your values, beliefs, and desires to others

After you complete all the reading assignments and self- checks in this lesson, post to the discussion board on your student portal and take your exam for Lesson 1.

Organizational Behavior32

Self-Check 3 1. According to the interactionist view, both _______ and _______ play a role in determining our

individual characteristics.

2. Natural talents that enable someone to accomplish a mental or physical task are known as

a. abilities. c. skills.

b. traits. d. values.

3. Identify four areas of the interpersonal skills relevant to managers.

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

4. What are the three elements of self-awareness?

__________________________________________________________

__________________________________________________________

__________________________________________________________

5. Self-management is one of the four major components of

a. conscientiousness. c. moral maturity.

b. emotional intelligence. d. introversion.

6. According to the MBTI and Carl Jung’s framework for understanding personality, the two dis-

tinct modes for decision making rely on either

a. perception or judgment. c. sensation or intuition.

b. extroversion or introversion. d. thinking or feeling.

(Continued)

Lesson 1 33

Self-Check 3 7. List the Big Five personality traits.

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

8. Honesty, kindness, and hard work are all examples of

a. character. c. terminal values.

b. temperament. d. instrumental values.

9. According to Kohlberg’s model of moral development, at what level are values based on

conforming to social standards and obtaining the respect of others?

__________________________________________________________

__________________________________________________________

__________________________________________________________

10. In Reddin’s personal values inventory, a/an _______ orientation describes someone who is

practical, efficient, and concerned with results.

a. power c. achievement

b. practice d. financial

Check your answers with those on page 120.

Organizational Behavior34

NOTES

Perception, Motivation, Engagement, and Stress Management

ASSIGNMENT 4: PERCEPTION AND ATTRIBUTION Read the following assignment in your study guide. Then, read Chapter 4 in your textbook.

What is Perception? Your textbook offers a basic definition of perception as the mental process through which we understand and relate to the environment in which we function. Because the role of perception is central to understanding behavior, your textbook goes further by introducing the concept of social perception, which is the primary focus of Chapter 4. Social perception is understood as the process of collecting, selecting, and inter- preting information that informs our views about ourselves and other people. As you’ll learn, social perception is a highly subjective process, influenced by several important factors.

One of these factors is a significant perceptual step known as closure—a process by which we rely on certain assumptions to fill in missing information. Closure enables us to interpret not only visual or other sensory stimuli, but behavioral and communication cues, as well.

This step, through which we habitually fill in the blanks, has particularly significant consequences when managing social perceptions of interactions between people of different cultural backgrounds. As you’ve already seen, cultural norms and expectations influence much of the context in which people communicate. When interacting with people of a differing cultural background, if we rely on our own cultural habits, chances are high that a misunderstanding will arise.

35

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s s

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Organizational Behavior36

The Three Stages of Perception The fundamental building blocks of social perception can be broken down into three interrelated stages, as illustrated in Figure 4.4 on page 117. The first is the attention stage, during which some stimulus or cue commands our focus. Of course, because we can’t possibly focus on every stimulus or signal we encounter, we filter some information, consciously or unconsciously allowing some things to grab our attention and ignoring others. This filtering process is often referred to as selective attention. While culture plays a role in influencing selectivity, research indicates that we’re also more likely apt to pay attention to salient cues, details that stand out against the background of ordinary experience through being unexpected, novel, or intense.

The second stage of the perceptual process is the organizational stage, during which we group the information that passes through our perceptual filters into logical, meaningful cate- gories. Cognitive psychologists refer to these organizational frameworks as schemas, sets of expectations that help us to understand and explain situations. Often unconscious prod- ucts of past experiences, schemas play an important role in the closure process, helping us to fill in the blanks and quickly process information. Though useful, schemas can lead us astray, persuading us too quickly that we know what we’re facing. As with closure in general, reliance on schemas can provoke particularly troublesome misunderstandings in cross-cultural communications and behavior patterns.

The final stage of the social perception process is interpretation and judgment. At this stage, we move beyond recognizing and organizing our perceptions and begin to form opinions about what we’ve observed. This is a particularly significant stage. It’s where we begin to ask, “What does this behavior mean?” and, “Why is this person behaving in such a way?”

The steps of answering these questions are discussed in the next section of your textbook.

Lesson 2 37

The Attribution Process Social psychologists use the term attribution to describe the process of explaining a cause of a person’s behavior. In gen- eral, two categories of attribution are considered. Internal attribution—sometimes referred to as personal attribution— refers to causes of behavior that are related to a person’s individual characteristics, including factors such as personal- ity and values. External attribution, sometimes referred to as situational attribution, refers to factors that are beyond an individual’s control, such as the physical environment, the behavior of other people, the challenge of the task assigned, or the organizational structure or culture.

As illustrated in Figure 4.5 on page 122, there are three dimensions by which we typically assign or infer attributions:

n Distinctiveness—Does the person’s behavior occur in relation to a single task or situation, or more generally with respect to all tasks and situations?

n Consensus—Is only one person behaving in a certain way, or are most (or all) members of the group exhibiting the same sort of behavior?

n Consistency—Is the person’s behavior consistent over time?

Often, we use a similar approach to deduce our motives and attitudes when considering our own behavior—a process that researchers refer to as self-perception theory. Some confusion may arise, however, when people attempt to attribute their behavior in the context of receiving an external reward, such as a bonus or some sort of public recognition. In such cases, people may assign too much significance to the external reward, a tendency referred to as overjustification.

Organizational Behavior38

Perceptual Biases Because of our tendencies to cognitive shortcuts like closure and schemas, our perceptions may become distorted and lead to errors in judgment and interpretation. Such distortions are generally referred to as perceptual biases. Your textbook examines a few of the more common of these. Summarized in Table 4.2 on page 126, these include

n Fundamental attribution errors, which occur when we minimize external or situational factors in attributing other people’s behavior and overemphasize personal factors

n Actor-observer differences, which represent the opposite tendency when attributing our own behavior—overem- phasizing external attributions to explain our behavior

n Stereotypes, which are generalized assumptions about a person based on the ethnic, racial, or other group to which he or she belongs

n The halo effect, which occurs when one particular trait that’s viewed favorably becomes the basis for a positive overall impression of every related characteristic; its opposite is the so-called horn effect, which occurs when a negatively perceived trait become the basis of an over- all impression

n A similar-to-me effect, which combines elements of stereotyping and the halo/horn effects, representing pos- itive perceptions of people who appear to share similar traits, and generally negative perceptions of those who appear dissimilar

n Primacy and recency effects, which represent opposing ends of a spectrum of perceptual bias, with the former representing the perceptions we form from first impres- sions and the latter reflecting biases we form when we focus on our most-recent interactions and ignore past behavior and performance

n Self-serving bias, which is related in some ways to actor- observer differences, through which we readily accept internal factors for our successes and blame external factors for our mistakes

Lesson 2 39

Overcoming perceptual biases can prove challenging, in large part because people tend to cling to them for the sake of con- sistency. Your textbook authors discuss a couple of strategies through which we seek to maintain that consistency. The first is channeling (also referred to as confirmatory hypothesis testing), a process through which we limit our interactions with others to certain situations that won’t challenge our bias. The other, known as the Pygmalion effect (or self-fulfilling prophecy), occurs when someone’s expectations and perceptions about others lead them to behave in ways that fulfill those expectations.

Managing Biases Your textbook outlines four steps through which the effects of perceptual biases can be minimized:

1. Recognize the biases.

2. Develop and maintain awareness of situations in which biases are likely to arise.

3. Offer constant reminders and support to help keep biases from reasserting themselves.

4. Provide opportunities for frequent interaction to challenge the habits that reinforce biases.

Organizational Behavior40

Self-Check 4 1. While perceiving the physical environment is a relatively _______ process, social perception

a/an _______ one.

2. The perception process involves _______, _______, and _______ stimuli and cues.

3. The process through which we fill in the blanks to provide missing information from signals or

cues is known as _______.

4. During which stage of the perception process do we assign new information to existing cate-

gories that are familiar to us?

a. Attention c. Attribution

b. Organization d. Interpretation

5. The cognitive models or patterns we apply to understand and explain certain situations and

events are known as _______.

6. In attempting to interpret the behavior of one of her employees, Trisha asks herself whether

or not this employee behaves in this way in all situations or only with regard to a specific

task. Which aspect of attribution is she considering?

a. Bias c. Distinctiveness

b. Consensus d. Consistency

7. Physical setting, task difficulty, other people’s behavior, and even luck are all considered

_______ attributions.

8. The tendency to underestimate situational factors and overestimate personal factors when

making attributions about others’ actions is known as

a. self-serving bias. c. stereotyping.

b. actor-observer difference. d. fundamental attribution error.

(Continued)

Lesson 2 41

ASSIGNMENT 5: MOTIVATION AND ENGAGEMENT Read the following assignment in your study guide. Then, read Chapter 5 in your textbook.

Approaches to Motivation Chapter 5 examines motivation, an internal force—perhaps a state of mind, or some sort of desire or interest—that causes a person to want to do something. As illustrated in Figure 5.1 on page 144, motivation is one of the three key elements of performance, along with the ability or capacity to perform and the opportunity to perform.

Self-Check 4 9. At a conference, you’re introduced to someone who is a Microsoft employee. Given your

attitude toward the reputation of that company, your perception of that person may be

influenced by a perceptual bias known as the

a. horn or halo effect.

b. primacy effect.

c. recency effect

d. latency effect.

10. List the four key steps in managing perceptual biases.

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

Check your answers with those on page 120.

Organizational Behavior42

Your textbook offers a look at several approaches or models that researchers have developed to help us understand what motivates people. The frameworks underlying each model differ considerably. However, each of the various models provides valuable insights, particularly for managers who are looking for ways to enhance motivation among employees in an organization. Let’s take a brief look at each of these models.

Need Theories

As the term implies, need theories are based on the assumption that motivation is based on needs, the aspects of personality and values related to situations, experiences, or things that we lack or desire. They further assume that certain categories of needs are shared by all people. If managers know what these common needs are, they can establish work goals in ways that coincide with them.

The basis for many need theories is a model devised by the clinical psychologist, Abraham Maslow, who organized human needs in a hierarchy, which are in a specific sequence. At the bottom of this hierarchy he places physiological needs, such as food, sleep and water, which need to be met before people can ascend to the next higher category of safety needs, which have to do with security, shelter, and employment. Once these needs are met, people can move on toward fulfilling higher needs for love, self-esteem, and self-actualization.

Management professor Douglas McGregor built on Maslow’s framework to propose a new approach to management and motivation. Introduced briefly in Chapter 1, his model was based on the contrast between what he called Theory X with Theory Y. Theory X is based on the classical, scientific model of organizational behavior, holding that workers’ primary motivation was money. Theory Y emphasizes the role of man- agement in coordinating organizational goals in ways that meet workers’ needs for engagement, creativity, and satisfaction in performing well.

Two other psychologists have proposed alternative need theories. Frederick Herzog developed a framework known as the two- factor approach. According to this model, fulfilling lower level needs—referred to as hygiene or extrinsic factors, which include working conditions, wages, status, and interpersonal relations— only leads to the absence of dissatisfaction. The fulfillment

Lesson 2 43

of intrinsic factors related to the work itself—for example, achievement, recognition, and responsibility—are motivating factors. David McClelland, by contrast, proposed a model based on three categories of need—achievement, power, and affiliation—which differ from person to person.

Expectancy Theory

Expectancy theory examines how people may be motivated by their expectations of desired results. The results may be money, recognition, career advancement, or even enhanced respect from coworkers. As illustrated in Figure 5.3 (page 149), employees have to recognize that their efforts affect their per- formance, which in turn determines the outcome of their efforts. Expectancy theory therefore includes a distinctive cognitive element in understanding motivation. Workers actually think through the relationship between effort and outcomes. It also suggests the involvement of certain organizational factors, such as opportunities for reward and incentives, as well as managers’ understanding that workers are more likely to expend more effort in areas in which their skills and abilities are well matched to the tasks they perform.

Goal Theories

Based on the assumption introduced in Chapter 1 that most behavior is purpose-driven, goal theory holds that having or setting a goal is in itself a source of motivation. When you know you want to achieve something, you take the steps to achieve it. Of course, the goal has to be meaningful, specific, and challenging. There also needs to be some way to determine progress toward the goal and assess whether or not it was reached. As shown in Table 5.1 on page 150, the acronym SMART is used as a way to remember the key elements of establishing goals that can motivate people:

n Specific

n Measurable

n Achievable

n Reasonable

n Timetable

Organizational Behavior44

One of the distinguishing aspects of the goal theory framework is that it suggests that setting and accomplishing goals enables people to gauge what they can do with the skills they have. This sort of assessment, known as self-efficacy, can result in a self- fulfilling prophecy. People who see themselves accomplishing goals will probably expend more effort in accomplishing what they’ve set out to do than those without goals.

Equity Theory Equity theory, another cognitive-based theory, describes moti- vation in terms of employees’ evaluation of the ratio of the effort they invest—the input—to the rewards or compensation they receive in return—the outcome. This evaluation is itself based on a perception of balance and fairness referred to as the equity norm. Motivation, in this framework, is based on a perception of inequity—that is, that the ratio between input and output is somehow imbalanced. Figure 5.4 on page 151 illustrates three possible situations in which inequity might be perceived. Table 5.2 on page 152 outlines certain steps employees might take to resolve the imbalance and establish equity.

Reinforcement, Reward, and Punishment Based in large part on the operant behavior model developed by B. F. Skinner, reinforcement theory proposes that behavior is learned through experiencing the consequences of certain types of behavior. That is to say, people tend to repeat behavior that results in pleasurable experiences and refrain from behav- ior that results in unpleasant or painful experiences—a correlation referred to as the law of effect.

Accordingly, reinforcement theory suggests creating an organizational structure in which certain types of behavior are encouraged through offering a positive reinforcer (through rewards such as a raise or public recognition) or a negative reinforcer (such as a reprimand). At the extreme, punishment (such as a demotion or more formal reprimand) may be indicated in an effort to motivate an employee to cease an undesirable behavior altogether. Table 5.4 on page 154 offers a brief sum- mary of guidelines for using reinforcement or punishment.

Lesson 2 45

Current Debates and Perspectives Some research suggests that the series of stages through which adults typically progress have an effect on motivation. Young adults, for example, tend to be motivated by establish- ing careers and intimate personal relationships. By contrast, older adults, especially those who have already established careers and relationships, begin to focus more on satisfying internal needs or desires. Research also indicates that certain cognitive abilities—such as memory and the capacity to process new or abstract information—also are affected at different stages of life.

Generational differences can also influence motivation. As examined in Chapter 2, life experiences and other factors, such as education, play a large role in shaping values. These values, in turn, affect the choices people make about the role of work in their life, the kinds of work they’re interested in, and the situations or opportunities that motivate them.

Trust and Engagement Some organizational behavior researchers argue that motivation through top-down approaches and structures is manipulative. They suggest that managers may find more success in culti- vating employee engagement, a commitment and attachment to their work and to the organization itself. Figure 5.5 on page 159 illustrates the relationship between engagement and outcomes such as job satisfaction and commitment.

Trust in the organization is a big part of developing and sus- taining this sort of commitment. A number of studies have shown that a major factor in developing trust is participation. When employees are involved in making decisions, their level of trust in the organization increases. They also have more of a vested interest in the outcome.

Creativity and Engagement As organizations grow and diversify, greater attention is being paid to management and leadership approaches that consider individual differences as assets to be developed, rather than

Organizational Behavior46

obstacles to be overcome. Involving employees more directly in decision making and other processes empowers them to suggest new, creative solutions. Doing so also offers employees a more personal investment in seeing decisions carried out.

Such an approach is most effective when it’s adopted at every level of the organization. Leaders establish a culture that encourages the development of individual employees, as well as set a tone that’s positive and inspiring, encouraging workers to commit emotionally to the organization. Managers, who are often in more direct communication with employees, can work with individuals to better understand their differences, recognize their strengths, and tailor their tasks in a way that makes the best of their skills and abilities and provides a meaningful, satisfying experience.

Self-Check 5 1. _______ is a state of mind, desire, energy, or interest that translates into _______.

2. List the three key elements of performance.

__________________________________________________________

__________________________________________________________

__________________________________________________________

3. Abraham Maslow conceptualized human needs in an ascending hierarchy from _______ needs

at the lowest level, to _______ at the highest level.

a. physiological, esteem c. safety, self-image

b. self-actualization, safety d. physiological, self-actualization

4. The _______ theory holds that motivation may be based on people’s perceptions about fair

balance between what they bring to a situation and what they get back.

a. expectancy c. reward

b. equity d. efficacy

(Continued)

Lesson 2 47

Self-Check 5 5. According to _______ theory, employees must perceive that their effort is instrumental to

good performance.

6. Which theory of motivation is associated with the acronym SMART?

__________________________________________________________

__________________________________________________________

__________________________________________________________

7. Psychologist David McClelland proposed a need theory model based on individual differences

in people’s needs for _______, _______, and _______.

8. The _______ describes the principle that people repeat behaviors that bring about pleasurable

or satisfying experiences and cease behaviors that bring about unpleasant or painful experiences.

9. Frederick Herzberg proposed a need theory model based on two factors, _______ and

_______.

10. Promotions, raises, bonuses, and public recognition are all forms of

a. equity input. c. organizational rewards.

b. measurable achievements. d. role clarification.

Check your answers with those on page 121.

ASSIGNMENT 6: MANAGING STRESS Read the following assignment in your study guide. Then, read Chapter 6 in your textbook.

Defining Stress The introductory material of your textbook defines stress as a physical, behavioral, and psychological response to challenges or threats that we perceive. Such challenges are known as stres-

Organizational Behavior48

sors. A framework for understanding the underlying mecha- nisms of stress was developed by medical researcher Hans Selye. This framework, known as the general adaptation syndrome (GAS) outlines three stages of response to stres- sors. These stages are

n Alarm, a physiological response that triggers signals to the nervous and endocrine systems (often referred to as the fight-or-flight response)

n Resistance, activation of physical and psychological defense mechanisms to combat or adapt to the stressor

n Exhaustion, the collapse of physical and psychological defenses after prolonged, unsuccessful attempts at resistance

The consequences and costs of stress can be huge, for individuals and for organizations. Absenteeism, illness and related medical costs, and reduced productivity all take their toll. Stress can also negatively affect our relationships with others, causing people to become irritable, impatient, angry, and isolated. In some cases, reactions to stress can provoke violence. Stress is also linked to job dissatisfaction, leading to what is known as job burnout.

That said, some stress can be beneficial, helping us focus better and enhancing our motivation and energy. This good stress is known as eustress. Figure 6.2 on page 178 offers a graph-type illustration of the relationship between stress levels and performance, productivity, and well-being.

Sources of Stress A wide array of factors, summarized in Figure 6.3 on page 180, can trigger stress. Some factors are personal/individual, while others may be related to the work or the organization. While reviewing these factors, bear in mind that not everyone responds to these stressors in the same way, and that it’s possible that some challenges may inspire beneficial, creative new ways of working.

Lesson 2 49

Individual factors can be categorized into three areas:

1. Change is nearly always a stressor, especially negative change, such as losing a loved one or being injured in an accident. However, even changes viewed as positive, such as getting married, buying a house, or receiving a promo- tion, involve some adjustments that are likely to trigger a stress response.

2. The type of personality someone has can affect the way that person handles stress. Type A individuals, characterized as impatient, competitive, and driven, are more likely to suffer stress than proactive personality types, who tend to see opportunities and take initiative, and are more open to creativity and change.

3. Personal circumstances, such as financial hardship, abusive relationships, and addictions, can be understood as both sources and responses to stress. Many organizations, recognizing the effect of such situations, offer Employee Assistance Programs (EAPs) to help workers manage and resolve some of these issues.

Organizational factors include a wider range of potential stressors:

1. Interpersonal relationships can become a source of con- flict, if workers feel they’re being treated poorly by others in the organization. Competitiveness can also have a negative effect. Additionally, bullying and harassment in the workplace presents an ethical challenge that needs to be addressed at the highest levels in the organization.

2. Expectations regarding an employee’s role can cause stress in a couple of distinct ways. Role conflict arises when the demands of one role interfere with or conflict with a worker’s ability to fulfill another role, or when an individual’s needs conflict with the demands of the role. Role ambiguity, uncertainty regarding one’s responsibili- ties or performance expectations, can lead to confusion, anxiety, and miscommunication.

3. Workload demands can trigger pressure if demands are too high or too difficult. Low demands tend to lead to boredom, distraction, and dissatisfaction.

Organizational Behavior50

4. The intrinsic nature of the work can itself be stressful. Consider the responsibilities and uncertainties facing health care professionals, police officers, and firefighters.

5. Working conditions—including lighting, temperature, building safety, and even commuting conditions—can aggravate stress.

6. Aspects of the organizational environment, such as office politics and the level of participation allowed in decision making, can contribute to stress. Additionally, as discussed in the equity theory of motivation, whether or not employees perceive they’re being treated justly is a factor.

Coping With and Managing Stress Learning how to manage stress constructively to avoid or minimize its negative consequences involves developing and implementing certain strategies. The first step, of course, is to recognize symptoms of stress itself, which requires a cer- tain degree of self-awareness. The self-assessment on page 173 can assist with developing that awareness. This section of your assignment presents a set of strategies that can be employed by individuals and by organizations.

Personal strategies include

n Lifestyle adjustments, such as including exercise, rest, and a balanced diet

n Attitude adjustments that cultivate a more positive and resilient outlook (see Table 6.1 on page 189 for five fac- tors essential to well-being, a framework developed by psychologist Martin Seligman)

n Social support, which involves building positive rapport with others, as well as spending time with friends, family, and significant partners

n Emotional regulation, which involves integrating the tools discussed in Chapter 3

n Time management, a process of setting priorities, evaluating how time is spent, and planning time according to priorities

Lesson 2 51

Organizational strategies include

n Job redesign, which can help ensure that the tasks involved in a job are meaningful, sufficiently (but not overwhelmingly) challenging, and goal-directed

n Preventative strategies, which include attention to recruiting and selecting the right candidate for the job and clearly articulating the responsibilities, as well as integrating certain programs that encourage healthy behavior, such as exercise, and training programs to help workers deal with stress at work or in their personal lives

After you complete all the reading assignments and self- checks in this lesson, post to the discussion board on your student portal and take your exam for Lesson 2.

Self-Check 6 1. Stress can be defined as including individual _______, _______, and _______ elements.

2. Perceived challenges and threats in our environment are known as

a. responses. c. adaptations.

b. stressors. d. motive forces.

3. During the _______ stage, heart rate and blood pressure typically rise, breathing rate

increases, and adrenaline is produced.

4. According to the GAS model, prolonged exposure and unsuccessful attempts at resistance to

stress result in _______.

5. A good type of stress, known as _______, can help people to focus and enhance their motiva-

tion and energy.

6. Which of the following is considered the primary individual source of stress?

a. Personality c. Change

b. Work environment d. Addictions

(Continued)

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Self-Check 6 7. Bianca is confused because the performance expectations outlined by her manager are

unclear. Which of the following organizational sources of stress is affecting her?

a. Role ambiguity c. Role reversal

b. Role conflict d. Role diversity

8. Federico doesn’t feel that he’s being treated in the way he deserves, an organizational

stressor referred to as

a. procedural justice. c. interactional justice.

b. equitable justice. d. distributive justice.

9. What does the E in PERMA stand for?

__________________________________________________________

10. Ensuring that prospective employees are presented with accurate, complete details regarding

the nature of their job is a/an _______ that organizations can adopt to manage workplace

stress.

Check your answers with those on page 121.

Fostering Creativity and Innovation; Decision Making

ASSIGNMENT 7: FOSTERING CREATIVITY AND INNOVATION Read the following assignment in your study guide. Then, read Chapter 7 in your textbook.

The Importance of Creativity and Innovation As you may recall from Chapter 1, in a study of more than 1,000 chief executives around the world, creativity was identi- fied as the single most important attribute for leaders. Today’s business environment—as well as the environment for community groups and government agencies—demands swift, often bold responses to change. Consider the risks and the opportunities presented by globalization. How does an organi- zation adapt to changing economic and political conditions? How can a product line be extended to appeal to members of different cultures?

Your textbook authors draw an important distinction between creativity and innovation. Creativity may be broadly understood as the generation of new ideas. Innovation is the process of bringing those novel ideas together in a way that translates into new products or services—or even a new way of doing business. Referring back to the example of the iPhone, the concept of a smartphone that functioned as a mini-computer, with a touch-capable screen and icons that opened programs, or apps, was a novel idea. The elements of design, production, branding, and promotion that went into bringing the iPhone to market were all aspects of innovation.

Both creativity and innovation are necessary for success. A creative idea that sits on the drawing board isn’t much on its own. An organization that can’t adapt quickly to new ideas

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and changes in the business environment isn’t going to offer much in the way of innovation. The remainder of this assign- ment is devoted to exploring how to foster both creativity and innovation.

What Is Creativity? Creativity is a very broad term, which resists attempts to provide an easy definition upon which a majority agrees. In an organizational setting, in particular, creativity is often assessed in terms of how well a new solution solves a problem or achieves a goal. However, that leaves a lot of room for variation in describing what creativity actually is.

Your textbook examines a few of the most common perspectives, summarized in Table 7.1 on page 207. These interpretations describe creativity variously as

n An set of innate traits, attributes, or characteristics specific to an individual (a variety of which are illustrated in Figure 7.1 on page 208)

n A set of cognitive skills and abilities, including the capacity for abstract or atypical thought

n A behavior that results in formulating new ideas and solutions

n A process of developing and testing new ideas

n A consequence of the interaction between an individual, the environment, and the nature of the task (illustrated in Figure 7.2 on page 210)

Lesson 3 55

The Creative Process Because a main focus for managers, leaders, and employees is to cultivate creativity in an organization, your textbook examines the process-based view. Using this approach, cre- ativity can be understood as a series of steps that unfold in examining and finding a solution to a problem or challenge.

1. Preparation—identifying the problem, accumulating infor- mation related to the problem, and formulating questions

2. Concentration—a conscious commitment to focus attention and energy on the problem

3. Incubation—the stage during which individuals let go of conscious effort and information is primarily organized (and reorganized!) on a subconscious level

4. Illumination—the moment at which insight or realization suddenly appears to the conscious mind (often referred to as a eureka moment, epiphany, or revelation)

5. Verification—evaluating the idea or revelation to determine whether it’s actually feasible or appropriate to the situation

Although the process is presented in a more-or-less linear fashion, it doesn’t always unfold that way. Sometimes new information needs to be added to the mix. Quite often, new and different perspectives have to be accommodated. Sometimes, the solution isn’t quite feasible, and you have to go back to the drawing board. Often, the creative process involves going back and forth between conscious and unconscious stages. So although the process does feature some elements of order, it’s also dynamic and complex, reflecting what might appear to be chaotic. Accordingly, some researchers have termed the process as chaordic.

British psychologist Michael J. Kirton distinguishes between different types of creative people. Some are adaptors, who focus on implementing incremental changes or improvements to exist- ing practices and processes. Others, referred to as innovators, tend to focus on big changes, often bringing together previously unrelated concepts (a computer and a phone) to produce a new product or design.

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Impediments to Creativity Given its chaordic nature, the creative process doesn’t always run smoothly. To foster creativity and innovation—personally or as a member of an organization—it’s important to be aware of the obstacles and challenges that may hinder the process, to prevent them, or to minimize their effects. Summarized in Figure 7.4 on page 214, these include

n Defining the problem incorrectly—This impediment occurs most often when the problem to be solved is defined in only one way, a process referred to as vertical thinking.

n Judging ideas too quickly—This situation typically occurs when the solution presented conflicts with current thinking.

n Stopping at the first idea—In this case, time pressures or competing priorities may compel settling on the first idea that seems good enough.

n Lack of support—If the organization isn’t open to new ideas or solutions, or if no one is willing to listen, ideas go nowhere, and further attempts at creativity are discouraged.

n Hostility to sharing knowledge—More extreme than lack of support, this represents outright opposition, sometimes escalating to punishment. Some organizations are sus- ceptible to a “Not Invented Here” syndrome, which devalues ideas that originate outside the organization.

Fostering Creativity in Organizations To encourage creativity and innovation within an organization, a great deal depends on establishing a culture and structure that actively supports creative thinking and behavior. Motivation, as you learned in Chapter 5, plays a big role. For creativity to flourish, however, intrinsic factors, particularly engagement, are key. This section of Chapter 7 reexamines some topics, with a view toward developing the creative potential of indi- vidual employees. As you’ve learned, work that’s challenging, interesting, and satisfying is a key driver of intrinsic motiva- tion. At the same time, supportive supervision establishes a

Lesson 3 57

balance between active coaching and individual autonomy that encourages creativity. Conversely, micromanaging—closely monitoring employees, minimizing choices, and exerting pressure to perform in certain ways—discourages it.

Additionally, the organizational culture needs to be flexible and collaborative, open to and rewarding new ideas and approaches. Workloads need to be balanced in a way that pressure to perform doesn’t become overly stressful, yet remains sufficiently challenging to inspire. At the same time, resources, including time and information, need to be committed to a project that requires a creative solution.

Positive emotions are strongly associated with creativity, so on an individual and organizational basis, fostering creativity also involves cultivating positivity. Research indicates that finding and implementing a creative solution appears to affirm and enhance positive emotions. So creativity and positivity become mutually reinforcing—a win for both individuals and organi- zations.

Fostering Creativity: Techniques and Tools There’s an old joke about a visitor to New York City who asks a man he passes on the street, “How do I get to Carnegie Hall?” Mistaking the request for directions for artistic advice, the man replies, “Practice, practice, practice!”

The same can be said of any creative skill. Individual abilities and a supportive environment are important, but creativity can be trained and enhanced using certain tools and techniques. Chapter 7 examines several of these, including

n Idea box or matrix analysis—a two-dimensional grid that provides a structure to combine and recombine ideas to develop new alternatives. A sample is provided in Table 7.2 on page 222.

n Synectics—a process of joining two apparently unconnected elements, one familiar and the other not, either to see a familiar situation from a different perspective or to view something novel from a more familiar point of view (such as placing yourself in an imagined setting and visualizing how you might respond)

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n Mindmapping—a technique that uses symbols, pictures and images to describe a vision, problem, or situation

n Design thinking—approaching a problem the way a designer might approach creating a product, taking into considera- tion how it will be used, what materials might be needed to assemble it, and what purpose it might serve

Enhancing Your Personal Creativity The final section of Chapter 7 briefly examines attitudes and mindsets you can cultivate to develop your personal creativity. Some of them will be familiar from the examination of the stages of the creative process presented earlier in the chapter. Others are strategies that have been drawn from the experi- ence of creative thinkers in a range of fields, from designers to scientists.

Self-Check 7 1. Describe the difference between creativity and innovation.

__________________________________________________________

2. Based on the view of creativity as a behavior, creativity may be defined as

a. a set of cognitive skills that include divergent thinking, the ability to generate alternatives

or a stream of ideas, and a strong ability to find associations between things or ideas.

b. actions and activities that result in the development of something new.

c. a process of sensing problems, making guesses, formulating hypotheses,

and communicating ideas.

d. a combination of expertise in a particular domain, creative thinking ability, and the

intrinsic motivation of the individual in a particular work or social environment.

3. During the _______ stage, a person not only searches for facts but also searches for ideas

and alternative perspectives.

4. During which stage of the creative process is a person focused primarily on solving a problem?

a. Incubation c. Concentration

b. Preparation d. Verification

(Continued)

Lesson 3 59

Self-Check 7 5. The _______ stage of the creative process involves an internal and subconscious ordering and

reordering of information gathered in the preparation stage.

6. A common impediment to creativity, known as _______, occurs when to when a problem is

defined in a single way until the solution is reached.

a. vertical thinking c. NIH syndrome

b. chaordic organization d. time pressure

7. The link between diversity and creativity has been shown to be even stronger when organiza-

tions have high levels of _______ and _______ across cultural, racial and ethnic groups.

8. One of the ways in which organizations can foster creativity and innovation is to design _______,

in which there is a measure of worker control and freedom in deciding what work to do and

how to do it.

9. One approach to synectics involves actually imagining yourself as the object or problem.

This approach is known as a _______ analogy.

a. direct c. symbolic

b. fantasy d. personal

10. Which of the following techniques relies on using symbols, pictures, or images to represent a

process, problem, or situation?

a. Design thinking c. Mindmapping

b. Symbolic thinking d. Idea box

Check your answers with those on page 122.

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ASSIGNMENT 8: DECISION MAKING Read the following assignment in your study guide. Then, read Chapter 8 in your textbook.

Defining Decision Making Every day, managers have to make decisions. In some cases, the effect of those decisions is fairly limited, affecting only members of a department. Others affect the organization as a whole. Still others—for example, introducing a new product or service or discontinuing an old one, or closing a percentage of stores— affect other industries and, sometimes, whole communities.

Chapter 8 begins by clarifying what is meant by decision making by defining some key terms. The first, organizational decision making, is understood to occur when a person in authority identifies a significant issue, such as the need to restructure departments or to change the direction of the organization, and then follows a series of steps that produces a result has real-world effects. This process in itself involves several steps, including gathering information, setting a direction for moving forward, coming up with possible choices, selecting from among those choices, and finally applying the chosen strategy. Note that the term decision itself is defined as a choice made from two or more possible alternatives.

Some researchers classify decisions into categories. Programmed decisions typically are routine decisions for which procedures have already been clearly established. Nonprogrammed decisions have no established procedure and require a more complex type of problem solving.

Additionally, decisions may be categorized according to risk. High-risk decisions are typically made by people at the high- est levels in the organization. They’re often strategic (think back to the scenario presented at the beginning of Chapter 7, which described J. Crew’s overhaul of its design aesthetic) and involve a high level of uncertainty. Low-risk decisions are often delegated to departmental managers, and involve less uncertainty. The kinds of decisions made at various levels within an organization are illustrated in Figure 8.1 on page 238.

Lesson 3 61

Your textbook further identifies decision making as an element of the larger issue of problem solving. A problem is specifically understood in terms of a gap or disconnect between what is actually occurring and an ideal or desired situation or out- come. Careful analysis is usually needed to correctly identify the actual source of the problem, rather than simply trying to quickly fix the obvious symptoms.

Of course, sometimes the decision-making process can stall, in many cases due to ambiguity or conflicts over who is respon- sible for making decisions and carrying them out. This situation is commonly referred to as a bottleneck—a kind of traffic jam over responsibilities and accountability. Figure 8.2 on page 239 illustrates the various kinds of bottlenecks that can occur. Sometimes, decisions fail completely, either due to flawed decision processes, hasty choices, or investments of time and money in studying the wrong problem.

Ethical Decision Making As you’ve probably noticed, your textbook authors have emphasized the importance of ethics in just about every area examined so far. Decision making is no exception, and it’s especially critical in today’s globalized environment, in which the effects of decisions play out on a much larger scale and often under the glaring eye of social media. Table 8.1 on page 241 summarizes a few of the cognitive biases and incentive systems that can tilt the scales toward decisions that aren’t ethically sound.

Generating Alternatives As mentioned, a big part of the decision-making process involves coming up with alternatives to solve a problem, the gap between the situation as it actually is and what would be considered more desirable. The first step in decision making, then, involves clearly identifying the gap. The next stage is to figure out the alternatives that can solve the problem and close the gap. The final step is to take action based on the choice.

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Implementing Good Decisions Experts agree that a good decision is one that genuinely solves a problem in a timely manner and in a way that can be understood and accepted by the people who are charged with carrying it out. Table 8.2 on page 243 outlines the essential principles that go into the process of making decisions that satisfy these characteristics.

n Distinguishing clear priorities, the issues that are truly central to the success of an organization

n Focusing on action rather than settling for reaching a consensus

n Clarity of the decision and clear accountability for the decision and its implementation

n Timeliness, a crucial factor in adapting to rapid changes, though sufficient attention needs to be given at the begin- ning of the process to uncover potential ethical conflicts

n Choosing the people with the appropriate expertise and information

n Implementing measures and incentives to support decision makers

n Involving those who will be affected by the decision in the process

Models of Decision Making Harvard professor and political analyst Graham T. Allison developed three models for understanding the decision- making process. Each represents a different perspective on how decisions might be reached. According to his analysis, different elements figure prominently, depending on the type of process used.

Lesson 3 63

The rational model proposes five phases that are carried out consciously and deliberately. Summarized in Figure 8.3 on page 245 these steps include

1. The pre-analysis phase, in which the problem is defined

2. The analytic phase, during which variables affecting the goals are scrutinized and information is gathered

3. The design phase, during which options for solving the problem are generated

4. The choice phase, during which the best option is chosen

5. The implementation phase, during which the chosen solution is applied

The organizational process model, by contrast, suggests that responsibilities for decision making are divided among members or groups within the organization. The input of each group, however, is in many ways restricted by standard procedures and the limitations of their roles within the organization. Objectives need to be communicated throughout the organization, and channels of communication must be established in all directions. Additionally, those participating in the process need to be provided with the information and skills that will shape their understanding of the problem or problems to be solved. Five pertinent characteristics that define the organizational process model are summarized in Table 8.3 on page 248.

A defining characteristic of the organizational model is incrementalism, the notion that decisions are rarely based on the conscious, deliberative manner suggested by the rational model. Instead, most decisions are arrived at through small, or incremental, responses to immediate or short-term conditions.

The third model, known as the collaborative decision-making model, describes the decision-making process as a collective effort that involves a range of contributors. Each of the con- tributors brings a different set of priorities and interests to the process, which often conflict with those of other members of the group. Rather than a conscious or deliberative process enacted by a high-ranking executive, the collaborative model involves much bargaining, negotiation, and compromise.

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An additional model, known as the garbage can model, has been proposed by another team of researchers. According to this model, decision-making choices are made on a kind of independent, ad hoc basis, in response to situations as they arise. In the terminology of the garbage can model, the moments when decisions are expected are referred to as choice opportunities. The various elements involved in making decisions are char- acterized in terms of available energy. Participants are members of the group who have the energy to devote to the decision. Problems are described in terms of the amount of energy required to make a choice. Solutions are described in terms of the amount of energy required to solve the problem.

Who Should Be Involved in Decision Making? Another approach to decision making requires consideration of the way the process is structured and who the key players are, which in turn determines the nature of the decision. Authoritative decisions are made by an individual—a manager, leader, or high-level executive—who makes decisions on behalf of the group, department, or organization. Consultative decisions are likewise made by an individual, but only after seeking input from other members of the group. Group decisions, as the name implies, are made through consensus by all members of a group affected by the decision. An interesting summary of leadership styles associated with these approaches to decision making can be found in Table 8.5 on page 253. Figure 8.5 on page 254, meanwhile, offers a graphical illustration of a decision tree that managers can use to determine the appropriate approach to leadership in making decisions.

One problem associated with group decisions, identified by psychologist Irving Janis, is a phenomenon he called groupthink. Applied to organizational life in general, group- think occurs when members of a tightly cohesive group refrain from proposing alternative solutions because they’re overly concerned with maintaining unanimity. Managers can take certain steps that leaders, individuals, and the organiza- tion can implement to avoid the pitfalls of groupthink. These are summarized in Table 8.4 on page 252. On the same page, Figure 8.4 outlines some of the common causes, symptoms, and consequences of groupthink.

Lesson 3 65

Techniques for Making Decisions One of the ways to head off bottlenecks before they occur is to clear up ambiguities about roles and accountability from the outset. This can be accomplished by employing what is known as the RAPID process, an acronym that includes five elements, which include roles and responsibilities as well as procedures:

n Recommend—This role is filled by the person whose responsibility is to make the proposal after receiving and analyzing information from other people involved in the process.

n Agree—The person in the recommender role is also responsible for coordinating a consensus among other members of the group, can reject recommendations, and if agreement can’t be reached bring the situation to the attention of the final arbiter, known as the decider.

n Input—The recommender solicits ideas and proposals from other members of the group, but is not bound by them.

n Decide—The person charged with making the final recommendation, and held accountable for it, is the decider.

n Perform—Once the decision has been made, an individual or group becomes responsible for implementing it.

Input can be collected through some common and effective options. The first involves bringing together a focus group of 10 to 12 people to identify problems, suggest methods and strategies for implementation, and assess alternatives. The discussion is led by a trained facilitator, who guides by presenting the problem, asking questions, and soliciting opinions. The facilitator then performs an analysis and formulates the results for presentation to decision makers.

Brainstorming is a technique designed to generate creative solutions to problems by encouraging group members to express their ideas freely in a noncritical atmosphere. Typically a facilitator leads the group by stating the problem or question

Organizational Behavior66

clearly and laying down certain ground rules about not judging ideas and welcoming even propositions that might sound way out of the box.

Once information has been gathered, the alternatives are offered to the decision maker(s) for analysis. One common tool is a cost-benefit analysis, in which the costs of implementing the solution and the benefits of doing so are evaluated in mone- tary terms. Cost-effectiveness analysis, by contrast, evaluates the costs of implementing a solution in qualitative terms, gauging how effectively it meets the organization’s goals and objectives, as well as other factors such as social and environmental effects.

This section concludes with an examination of two other decision-making techniques. The first, the nominal group technique, is an approach designed to ensure that every member of the decision-making group is allowed equal input into the process. The other, evidenced-based management, is a process that involves making decisions based on information gathered from data derived from research into practices already implemented. Using that data, decision makers can, for example, determine cause-effect connections and introduce variables that might generate a different outcome.

After you complete all the reading assignments and self- checks in this lesson, post to the discussion board on your student portal and take your exam for Lesson 3.

Lesson 3 67

Self-Check 8 1. Identify the steps typically involved in the decision-making process.

__________________________________________________________

__________________________________________________________

__________________________________________________________

2. In the context of decision making, a/an _______ is defined as a discrepancy between what is

actually occurring and an ideal or desired situation.

3. In the case of _______ decisions, there are no obvious decisions rules, and managers have to

engage in complex problem solving.

4. Which type of decision is typically made by a high-level executive and often involves some

degree of uncertainty and potential conflict?

a. autocratic c. high-risk

b. democratic d. low-risk

5. A/An _______ usually occurs when there is ambiguity about who is accountable for the

decision.

6. Identify the principles of successful decision making.

__________________________________________________________

7. The first phase in the rational model of decision making is the _______ phase.

a. analytic c. choice

b. design d. pre-analysis

8. Described as a process of making small choices based on short-term conditions, _______ is

sometimes cited as the key to the _______ model of decision making.

9. _______ decisions are made by individuals who receive input from members of a group

involved in the decision-making process

a. Authoritative c. Groupthink

b. Consultative d. Collaborative

10. In the _______, each member of a group is allowed to present his or her ideas about the

problem to be discussed, culminating in a secret ballot to determine the preferred solution.

Check your answers with those on page 122.

Organizational Behavior68

NOTES

Communicating Effectively; Working in Groups and Teams

ASSIGNMENT 9: COMMUNICATING EFFECTIVELY WITH OTHERS Read the following assignment in your study guide. Then, read Chapter 9 in your textbook.

Defining Communication Understanding human communication is central to under- standing human behavior. In this assignment, you’ll explore a general model of the communication process, as well spe- cialized forms of communications. You’ll have an opportunity to examine interpersonal communication styles and to discover approaches to overcoming barriers to effective communication. You’ll also learn about the different dimensions of communi- cation between people and how to apply them effectively for optimal group performance.

In essence, communication is about sending and receiving messages. From the generation of an idea in a sender’s mind to the response of the receiver to the message, it’s an interac- tive process. However, as you’ll learn, the process is far from simple. A number of factors influence the way messages are sent and the way they’re interpreted or received. Sometimes for example, the meaning is ambiguous or unclear to the recipient. In some cases, the ambiguity may be intentionally or strategically ambiguous, for reasons you’ll discover as you explore the chapter material.

The Communication Process At first glance, the communication process seems fairly straightforward. A person initiates communication by trans- mitting a message, either through written, oral, or through subtler, nonverbal means, such as body language or facial expression. This stage of the process is known as encoding.

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The recipient then translates and interprets the message, a stage in the process known as decoding. However, the way in which a recipient decodes the message depends a good deal on his or her frame of reference, the personal context through which each individual understands and interprets meaning.

As depicted in Figure 9.1, other factors come into play. When a message is received and decoded, the recipient often offers a response, known as feedback. In some cases, feedback simply closes the communication loop. In others, it opens the door to further communication.

Furthermore, communication can be hampered by various distortions, that is, differences between the intentions of the sender and the meaning decoded by the receiver. Some examples are described in Table 9.1 on page 276, and an illustration is presented in Figure 9.2 on page 277. Some distortions arise from semantics, an understanding of the actual meaning of words. Jargon, a kind of shorthand or specialized vocabulary that some organizations use as a matter of course, may interfere with the recipient’s ability to decode the meaning accurately.

Another factor is filtering, a process through which the sender of the message manipulates information so that it will be received more favorably. Messages can be distorted by noise, which may be actual noise, like misunderstood words or static on the lines, or social noise, which is a kind of dis- tortion that occurs when messages are passed from one recipient to another. Finally communication can be hampered by defensiveness, a type of response or feedback that occurs when the recipient perceives some sort of threat in the message.

Oral Communication

The next few sections of your textbook examine common forms of communication and the particular considerations to be aware of regarding each. The first of these is oral communication. When actually speaking to others, either individually or in groups, it’s important to bear in mind that one is transmitting not only a relational message (the information that forms the substance of the message, but also an emotional message). The latter is con- veyed through tone of voice, as well as through the choice of

Lesson 4 71

words. Are they carefully chosen to fit the context of communi- cation? Are they sensitive to the thoughts and feelings of the listeners? One of the ways in which oral communication may be enhanced is through self-disclosure, admitting your personal thoughts and feelings about the subject being discussed.

Active Listening

Listening is probably the most significant element of oral communication. It’s a skill that can have major ramifications on managerial success. Active listening is an approach that relies on taking deliberate steps to clarify and confirm the message you’re receiving. The basic steps, depicted in Figure 9.4 on page 280, can be summarized as follows:

n Stop talking.

n Make a conscious effort and have a purpose or reason for listening.

n Suspend judgment while listening.

n Resist distractions.

n Wait before responding.

n Paraphrase (restate what you hear in your own words).

n Seek important themes, the main ideas being conveyed rather than specific facts.

n Use what is known as the thinking-speaking differential, a term that describes the variance between the rate at which we speak and the rate at which we think. In general we think much more quickly than we speak, and this differ- ential can offer a listener more time to reflect on what he or she is hearing.

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Supportive Communication

The idea behind supportive communication is that, in addi- tion to effectively transmitting and receiving messages, communication must be focused on developing and maintain- ing interpersonal relationships. As illustrated in Figure 9.5 on page 283, supportive communication has several impor- tant characteristics:

n Problem-oriented rather than person-oriented

n Descriptive rather than evaluative

n Specific rather than general

n Conjunctive rather than disjunctive (Statements clearly relate to what was just said, rather than being unre- lated.)

n Validating rather than demeaning

n Owned rather than unowned (The speaker takes respon- sibility for what’s being said.)

n Two-way rather than one-way

Dialogue

Some communications experts identify dialogue as a specialized form of communication that differs from both discussion and debate. A debate is generally understood as a kind of contest, during which participants present opposing ideas or perspec- tives to gain a competitive advantage. Discussion, in a formal sense, is considered a form of communication that, while not necessarily aimed at winning any sort of advantage, places greater emphasis on differences rather than shared attitudes and perspectives. Dialogue, by contrast, is a process that emphasizes finding common ground, trust, and mutual understanding among participants.

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Electronic Communication

There’s no doubt that the many forms of electronic communication, from email to texting to instant messaging, have revolutionized the way people communicate with each other. Messages can be exchanged much more quickly, dis- tributed more widely, and stored and retrieved more readily, while the whole process of communication can occur across different points in time.

There are a few disadvantages to consider, however. As a few recent hacking scandals and revelations about various gov- ernment programs have shown, electronic communications are rarely secure or private. Nonverbal cues are absent and emotional elements, are often minimized, or perhaps, more seriously, amplified. Spontaneity of exchange can also be affected, in part because of the time lag between sending and receiving messages.

Specialized Forms of Communication The final section of Chapter 9 examines a few specialized forms of communication that can be helpful to master, par- ticularly for managers. The first is persuasive communication, which, as the name suggests, involves attempting to move the recipient to accept or adopt the point of view of the sender. Credibility is the primary factor in the effectiveness of per- suasive communication. Is the sender able to demonstrate some expertise and trustworthiness? Can facts and figures used to present the case be verified? Are they accurate? The tone of persuasive communications is also important. Some recipients respond to a hard-sell approach, while others may be more amenable to a soft sell.

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Coaching and personal counseling are approaches to communica- tion that, in an organizational context, are aimed at confronting work-related matters before they escalate into problems. While coaching is usually confined to work-related behavior, coun- seling may be more widely applied to areas outside of the workplace, yet affect a person’s behavior at work. Both coaching and counseling involve three stages:

n A preparation stage, during which information is collected and objectives for the session are specified

n The session itself

n A follow-up stage, which usually includes some sort of documentation about the session and establishing a plan for assessing changes or further meetings

Though sometimes regarded as interruptions or annoying duties, meetings can be useful—sometimes even inspiring— modes of group and collaborative communication. As outlined in Figure 9.7 on page 292, there are several steps managers can take to ensure that meetings are effective. These include developing a clear agenda, adhering to the agenda during the meeting, minimizing distractions, closing the meeting with a summary, and distributing notes after the meeting is concluded.

Finally, managers are often tasked with writing memos, reports, and proposals. Table 9.2 on page 293 summarizes a set of guidelines referred to as the six Cs for effective written communications. These are

n Clarity

n Courtesy

n Conciseness

n Confidence

n Correctness

n Conversational tone

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Self-Check 9 1. In addition to transmitting information, communication is also considered an effort to

establish _______.

2. The process of communication involves at least two steps. First, one party initiates the com-

munication by _______ though various channels or media. The message goes to _______,

who then may or may not provide _______.

3. To establish common meaning though communication, the sender has to _______ and then

the receiver has to _______ the meaning by translating the sender’s message.

4. The personal context each of us brings to communicating with others is known as our

a. cultural bias. c. jargon.

b. social noise. d. frame of reference.

5. The term _______ describes an effort to manipulate information that’s being sent so that it

will be received more favorably by the receiver.

6. The difference between the meaning intended by the sender and the meaning understood by

the receiver is known as

a. semantics. c. jargon.

b. distortion. d. defensiveness.

7. During oral communication, a speaker should bear in mind that he or she is transmitting two

types of messages, _______ and _______.

8. One of the elements of active listening involves restating what you hear in your own words.

This process is known as

a. paraphrasing. c. self-disclosure.

b. rephrasing. d. refiltering.

9. The term _______ refers to an approach to communicating with others that recognizes both

the need to convey information and to enhance interpersonal relationships.

10. What are the six C’s of effective managerial writing?

__________________________________________________________

Check your answers with those on page 123.

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ASSIGNMENT 10: WORKING IN GROUPS AND TEAMS Read the following assignment in your study guide. Then, read Chapter 10 in your textbook.

Defining Groups and Teams In this assignment, you’ll explore groups and teams—how and why they form, how they differ, and the some of the rules and norms that govern their development and behavior. You’ll also learn about the kinds of functions teams serve and the roles filled by group and team members. Additionally, you’ll examine ways in which teams can be guided to function more effectively.

To begin, your textbook authors make a distinction between groups and teams. Groups are defined as “two or more people who interact in an organized manner to perform a task or activity to achieve a common goal.” The implication here is that group members consciously identify themselves as part of a group. Furthermore, to achieve their common purpose, each member performs a specific role or task, and their rela- tionships with each other are to some degree interdependent.

Teams are understood to be more tightly organized and inte- grated groups. Their skills tend to be complementary, and their goals or objectives are more clearly defined. Teams are typically allowed a bit more autonomy than groups, as well as more authority over assessing their own processes and outcomes. Table 10.1 on page 303 summarizes the main differences between groups and teams.

Organizations choose to form groups and teams for a number of reasons. Figure 10.1 on page 305 summarizes some of the factors behind the decision to use teams to accomplish certain kinds of tasks. In many cases, teams can accomplish tasks more efficiently than individuals or large organizational groups. When functioning effectively, they can produce more ideas and information, offer deeper support for problem solving and decision making, and counteract individual biases that may hinder creativity and innovation.

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Teams also tend to be more highly motivated, because team members effectively reinforce each other’s commitment to, and engagement with, the task or tasks they’re assigned—a phenomenon referred to as social facilitation. There are, of course, potential disadvantages to assigning tasks to teams. As you learned in Chapter 8, groupthink can inhibit individual members from suggesting alternatives in favor of maintaining unanimity. In addition, individual members may invest less effort in their own task if they know that other members are working hard—a phenomenon referred to as social loafing.

Structural Issues in Groups and Teams A number of factors can influence the effectiveness and per- formance of groups and teams. First among these is the size of the group. Studies show that individuals in groups larger than 10 or 12 members have fewer opportunities and incen- tives to participate and consequently may be less likely to feel engaged. Furthermore, the larger groups grow, the more likely they will split off into smaller subgroups to manage different aspects of a task. This can lead to conflict and breakdowns in communication and coordination.

The composition of the group is another factor that can affect performance. Homogeneous groups, composed of people who are similar in various ways, tend to get along better and interact more easily. Heterogeneous groups, composed of people with different backgrounds, levels, types of experience, or generational or cultural perspectives, can sometimes encounter conflicts. On the other hand, as you learned in earlier chapters, diversity can also lead to more creative and ethically sound solutions.

Roles and Norms

Additionally, as members of a group or team undertake different tasks and functions, hierarchies begin to emerge. Individual members begin to assume different roles, which may be understood as patterns of behavior that develop within the context of the group. Summarized in Figure 10.2 on page 307, such roles may be broadly categorized as

n Task roles—associated with accomplishing the task the group is performing

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n Relationship (or maintenance) roles—associated with maintaining the group’s social interaction

n Self-oriented roles—which are assumed by people who are motivated more by their own needs than by the needs of the group

In addition, group or team members bring a personal style to their roles, leading some researchers to identify four distinct stylistic roles:

n The contributor—the dependable member who supplies information and sets performance standards

n The collaborator—who values the mission or goal of the team most highly, yet is flexible enough to entertain new ideas

n The communicator—who manages conflict and keeps communications running smoothly

n The challenger—who openly questions goals and methods, advocates taking risks, and advances fresh ideas

As groups evolve and roles begin to take shape, so do the rules or expectations regarding behavior of group members. Commonly referred to as norms, such expectations are typi- cally classified as central or peripheral. Central norms, such as maintaining a certain degree of respect or contributing quality work, are rules of behavior that are considered funda- mental to the group’s identity and goals. Peripheral norms, such as sociability, help to maintain the central norms but aren’t essential to the group’s identity or goals.

Cohesion, Conformity, and Deviance

The term cohesion refers to the overall extent to which mem- bers of a group are attracted to the group and to each other. The advantages and disadvantages of cohesion, summarized in Table 10.2 on page 309, manifest in various levels of motivation, loyalty to the organization, creativity, goal-setting, problem solving, and decision making. Conformity, understood as adherence to the group’s norms, is in some ways a reflection of the group’s cohesion. The more tightly cohesive the group is, the more likely individual members are to conform.

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Yet, even in cohesive groups, some members may not conform to the group’s central or peripheral norms. Though technically labeled deviants, nonconformers are not necessarily disruptive, nor do they pose threats to the group’s cohesion or productiv- ity. Some may actively contribute by challenging certain norms or proposing highly creative, if somewhat risky, solu- tions. Figure 10.3 on page 310 illustrates four categories of conformers and deviants, in relation to their acceptance or rejection of group norms, along with the potential responses to their behavior.

Developing Teams As groups and teams develop, they undergo several stages of development, as depicted in Figure 10.4 on page 312. Some groups get stuck in the early stages and end up falling apart or becoming mired in conflict. Mature teams make it through to the final stage, and depending on their nature and func- tion, adjourn.

The first stage is forming. This is the phase of development when individual members come together of their own accord or are assigned by someone in a management role within an organization. At this stage, issues such as the nature and purpose of the group are defined, goals are articulated, basic norms are established, and assumptions (not always correct) about relationships, tools, and resources are formulated.

During the second stage, known as norming, the team begins function as a unit. There is some pressure to conform to cen- tral and peripheral norms, and individual members begin to assume different roles. Teams begin to formulate strategies and procedures for monitoring output, and systems for allo- cating resources and the flow of information, resolving matters related to communication, and prioritizing tasks and respon- sibilities. They also begin to evolve processes for monitoring behavior and offering feedback.

As roles, rules, and processes begin to be more clearly defined, the team enters the third stage, known as storming. This is a delicate phase of development during which the legitimacy of roles and norms are questioned, as well as the team’s objec- tives and purpose. Conflicts arise, disruptions occur, and differences in perspective are crystalized. If these challenges

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can be dealt with openly and honestly and the team solves problems as they arise rather than ignores them, then the team can move forward.

Assuming the team survives the storming stage, in the final stage of development—known as the performing stage—the team becomes a highly effective and cohesive unit. As individ- uals and as a team, they’re motivated by a sense of urgency to fulfill their tasks. New members may be invited to join on the basis of the skills they can bring to the team. Trust is established, and norms are accepted as guidelines for success. New challenges are met with energy and efficiency, and the team strives toward continual improvement.

Types of Teams Within organizations, several different types of teams may be created to fulfill different functions or to fulfill certain needs. Common types of teams include

n Top management teams—responsible for formulating the overall mission and for organizing and choosing a style or system of management

n Project teams—established by management to fulfill a specific goal or mission

n Process-improvement teams—small groups charged with devising and implementing new strategies that positively affect the areas in which they work (see Table 10.3 on page 316 for issues typically handled by process- improvement teams)

n Cross-functional teams—which make recommendations for enhancing coordination between different departments or divisions within an organization

n Self-directed teams—largely—but not exclusively— autonomous teams that determine how and when certain tasks are to be accomplished

n Virtual teams—comprised of members in geographically diverse areas who communicate primarily through video- conferencing, satellite television, and other technological media

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Helping Teams Become Effective As more organizations shift from traditional hierarchical structures toward team-oriented models, certain guidelines have emerged that can assist in the transition. Chief among these are

n Establishing and communicating clear goals

n Building cohesion and managing diversity through rewarding individual contributions, encouraging and managing constructive conflict, and maintaining a balance between fulfilling short-term and long-term outcomes

n Developing trust through honesty and integrity, rewarding competence and hard work, and establishing a culture that encourages open communication, mutual respect, ethics, and collaboration

n Emphasizing the role of team leaders as facilitators and contributors rather than simply supervisors

n Providing training to develop technical, interpersonal, and leadership skills

n Involving the team in devising methods for evaluating and rewarding performance

Later in your course, you’ll examine approaches for dealing with larger issues of organizational structure. At this point, it’s sufficient to point out that some organizations have pretty much eliminated traditional hierarchies, organization charts, and chains of command. Instead of managers and staff, members of such organizations are considered associates, lines of communication are flexible and open, and leaders are accorded respect according to their expertise and collaborative contributions.

After you complete all the reading assignments and self- checks in this lesson, post to the discussion board on your student portal and take your exam for Lesson 4.

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Self-Check 10 1. As opposed to groups, teams are made up of _______ members, with _______ leadership,

and with goals determined by _______.

2. The reinforcing effect that occurs when the efforts of individual team members motivate other

members of the team to work harder is referred to as

a. groupthink. c. social facilitation.

b. team pressure. d. social loafing.

3. _______ groups are composed of members who have different social and cultural backgrounds,

different levels of experience, and/or different personal styles.

4. Which of the following roles describes a team member who is able to resolve conflict and help

nurture relaxed interpersonal relationships?

a. Collaborator c. Contributor

b. Communicator d. Challenger

5. _______ are shared rules and expectations that are essential to a group’s identity and goals.

6. While _______ refers to the degree to which members of a group are attracted to the group

and to one another, _______ refers to the extent to which members adhere to group norms.

7. During which stage of team development are members most likely to question the legitimacy

of the team, its objectives, and the roles and actions of other members?

__________________________________________________________

8. During the _______ stage of team development, members may question what role they’ll be

allowed to perform, how the team will track and communicate progress, and how key activities

and events might be prioritized.

9. Which of type of team is usually responsible for breaking down silos that exist in

many organizations?

a. A project team c. A top management team

b. A process-improvement team d. A cross-functional team

10. To help teams become more effective, team leaders need to be aware of their role as

_______, contributing to the team instead of simply supervising.

Check your answers with those on page 123.

Managing Conflict and Negotiation; Leadership

ASSIGNMENT 11: MANAGING CONFLICT AND NEGOTIATION Read the following assignment in your study guide. Then, read Chapter 11 in your textbook.

Defining Conflict Your textbook authors define conflict as a process, which has interesting implications for developing strategies to prevent it and manage it. The result of this process is described as fric- tion—an interesting term in its own right, because it suggests rubbing in the wrong way. On a visual level, two sticks that are rubbed together can produce a spark that grows into a fire.

In the case of conflict, friction occurs when people disagree over important issues. In contrast to minor disagreements, which are typically resolved fairly quickly and easily, conflict occurs when disagreements result from opposing interests, thoughts, feelings, and perceptions, which are recognized by the parties involved. The disagreement is persistent, and the parties involved actively interfere with one another’s efforts to achieve their goals.

Note that the textbook authors distinguish between conflict and competition. Competition involves a clash of interests or goals in which one party eventually emerges as a winner and the other as a loser. While competition may be a source of conflict, conflict can be managed in ways that foster cooperation, so that neither party emerges as a winner or loser.

Particularly in the early days of organizational behavior theory and practice, conflict was viewed as a negative, destructive force that fostered hostility and impeded productivity. As you’ve learned in previous chapters, more contemporary views of conflict recognize that it is a natural aspect of organizational life. If handled well, it can even enhance productivity and assist in the generation of creativity and innovation. Figure 11.1 on

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page 340 offers a graph-like illustration of the relationship between levels of conflict and their effects on productivity and creativity.

Conflicts may be characterized several ways, each of which has a different effect on the organization. Summarized in Table 11.1 on page 342, these include

n Intrapersonal conflict—An individual has two opposing goals that interfere with one another.

n Interpersonal conflict—Two or more people interact with each other but hold opposing goals, values, or personal style

n Intragroup conflict—Examined a bit in Chapter 10; members of a team or group disagree on goals or processes.

n Intergroup conflict—Groups within or outside an organization oppose each other.

n Horizontal conflict—Departments or groups at the same level within an organization disagree.

n Vertical conflict—Disagreements occur among groups at different levels within an organization—for example between top management and a department or division.

Culture and Conflict As you learned earlier, national culture and the culture of various subgroups shape attitudes, values, and perceptions, which in turn influence people’s behavior and their interpretation of other people’s behavior. Understandably, such differences can provoke conflict, especially in today’s environment in which members of different cultures interact more closely and regularly. Even cultural differences in response to con- flict can provide potential grounds for conflict, particularly when members of different cultures hold different perspectives on power, status, gender, age, and ethnicity. Organizational culture has an effect, as well. Organizations that emphasize rewarding competition are more likely to foster conflict than organizations in which cooperation is more highly valued.

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Sources of Conflict The sources of conflict within organizations can be broadly divided into two categories: personal and organizational. Personal sources may be more accurately understood as arising from interpersonal disagreements. As you’ve seen in previous chap- ters, individual differences in perception, values, motivation, and cultural background are all potential sources of conflict.

However, many conflicts that appear interpersonal may actually be traced back to organizational structures and processes. Figure 11.3 on page 344 illustrates the main organizational sources of conflict, which include

n Goal incompatibility among different departments within the organization

n Uncertainty due to rapid changes and instability in the business environment

n Resource scarcity, which creates competition among departments and employees to receive what they need to accomplish tasks

n Reward systems that emphasize competition and/or focus on individual over team recognition

n Interdependence, which can cause conflicts when individuals, teams or groups that depend on one another to accomplish tasks don’t contribute equally

Managing Conflict Because conflict is by and large a normal element of organi- zational behavior, managers and leaders are less concerned nowadays with eliminating it than with learning how to manage it effectively and, hopefully, in ways that will lead to increased productivity, creativity, and innovation. Several considerations, summarized in Figure 11.4 on page 348, may influence their approach. These include the importance of the issue, the complexity of the conflict, the amount of time available, the power of the parties involved, and the necessity of a long-term solution.

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There are two basic approaches to managing conflict. The first focuses on changing the behavior of the parties involved. Such an approach, which may involve relocating employees in different areas of the building or providing an intermediary for communication, is a short-term solution that requires a minimal investment of time.

An attitudinal approach is a long-term strategy that requires more time and some changes to organizational structure. Addressing the roots of conflict by focusing on emotions, beliefs, perceptions, and behavior often involves implement- ing team building strategies and training, and counseling, and occasionally rotating employees in and out of different teams.

A manager’s individual style can also influence the direction and strategy he or she uses to manage conflict. Stylistic dif- ferences are characterized in two dimensions: assertiveness, which is focused primarily on taking action to satisfy one’s own needs and concerns, and cooperativeness, in which satisfying others’ needs and concerns takes precedence.

Stylistic differences represent opposite ends of a continuum rather than mutually exclusive characteristics. To varying degrees, they influence each other to produce five distinct conflict management styles, summarized in Figure 11.5 on page 349.

n Collaboration involves satisfying both the manager’s needs and the needs of conflicted parties.

n Competition is encouraged when assertiveness plays a dominant role.

n Accommodation is attempted when cooperation is a prior- ity and the manager sacrifices his or her own needs to satisfy the needs of others.

n Avoidance, is neither assertive nor cooperative; the manager simply ignores the conflict or withdraws from engaging in a solution.

n Compromise represents a somewhat uneasy balance between assertiveness and cooperation, in which satisficing (finding a solution that’s acceptable but not optimal) is the end result.

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How, when, and what approach to managing conflict varies depending on a variety of situational factors. Table 11.3 on page 350 presents a summary of the managerial styles, together with situations that suggest whether or not a partic- ular style is appropriate. Meanwhile, Table 11.4 on page 351 outlines the appropriateness and potential consequences of employing behavioral and attitudinal approaches to conflict prevention and reduction.

Yet, as you’ve learned already, in some instances conflict may prove beneficial in terms of developing teams, individuals, and improving the performance of the organization as a whole. Accordingly, Table 11.5 on page 353 presents a short sum- mary of methods for stimulating conflict. Such methods include introducing change, deliberatively increasing task ambiguity, creating interdependence, and introducing some elements of internal competition.

Negotiating Managing relationships among employees or other members of the organization often involves some type of negotiation— a process through which two or more individuals or groups engage in discussions that result in a mutually agreed-upon arrangement. The process of negotiation assumes that, while there is a conflict over certain issues such as goals and processes, the parties involved are in some ways interdependent, so they’re capable of influencing each other and motivated to reach a satisfactory agreement.

Given these assumptions, negotiation proceeds through four general phases, in a more or less continuous fashion, as outlined in Figure 11.6 on page 355:

n Preparation, or gathering information related to the issue to be negotiated

n Presentation of offers and demands

n Bargaining, the actual process of employing strategies to reach agreement

n Agreement, the conclusion of the process

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Of course, negotiation rarely proceeds as smoothly as this outline suggests. Legal and ethical issues often complicate efforts—for example, facts or positions can be misrepresented; information can be withheld; or threats, false assurances, or promises can be presented. Cultural differences, including perceptions of power, status, and the value placed on collab- oration or assertiveness, can also have a complicating effect. For a variety of reasons, negotiators can make mistakes (Table 11.7 on page 358 lists a few of the more common mis- takes, along with a description of each and the likely causes).

Effective negotiators are not only well prepared and aware of ethical issues and common mistakes, they also bring to the bargaining table certain skill sets that can facilitate the process. Creativity and flexibility, for example, can assist in developing alternative solutions and a capacity to adapt to changes as the process evolves. Emotional regulation can help to maintain a positive climate even during moments of tension. Sensitivity to the balance of power and control can help maintain a perspective on what is achievable. Finally, the strength to walk away from negotiations when proposals fail to match goals is a crucial asset.

Additionally, negotiators need to be willing to adopt a variety of strategies to achieve a result. The traditional strategy in which one party wins and the other loses—known as distributive negotiation—is less effective among business organizations than, for example, government agencies negotiating with public- sector workers. The changes brought about by globalization, workplace diversity, and employee engagement have led to the development of an integrated negotiation style, in which parties to a negotiation reach a mutually beneficial arrangement through focusing on new, creative solutions.

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When choosing a strategy, negotiators need to consider two factors. The first is to determine the importance of the relationship with the other party. The second is to determine the importance of the outcome. When these two factors are considered together, it’s possible to map out four distinct negotiating strategies, summarized in Figure 11.7 on page 360.

n When both the relationship and the outcome are important, the preferred strategy is trusting collaboration.

n When the relationship is important, but the outcome is less of a concern, negotiators may pursue a strategy of firm competition.

n In situations in which the outcome is less important than the relationship, a strategy of open subordination may be appropriate.

n When neither the relationship nor the outcome is important, neither party agrees to negotiation, an approach known as active avoidance.

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Self-Check 11 1. To be defined as conflict, a disagreement must be _______ as opposed to a once-in-a-while

occurrence.

2. Conflict is understood to occur when people with opposing views try to prevent one another

from _______.

3. Very high levels of conflict, especially if based on individual and personality differences, can

lead to

a. complacency. c. dysfunctional behavior.

b. stagnation. d. creativity and innovation.

4. _______ arises because two or more people with different goals, values, or styles are required

to interact.

5. The term horizontal conflict refers to

a. conflict that occurs between departments or groups at the same level of the organization.

b. conflict within a work group over goals or work procedures.

c. conflict that occurs between groups at different levels of organizational hierarchy.

d. an individual’s personal conflict between opposing goals.

6. One organizational source of conflict, referred to as _______, often arises when different

departments in organizations are focused on different tasks and functions.

7. When conflicting parties have to work together—for example, in the case of a self-managed

team or between members of two departments that are highly interdependent—managers

should use the _______ approach to conflict management.

8. Which of the following management styles is low on assertiveness but high on cooperation?

a. Collaboration c. Avoidance

b. Accommodation d. Collaboration

9. A common negotiating mistake, known as _______, occurs when a high offer is made early in

the negotiation process and quickly accepted by the other party.

10. _______ is the appropriate negotiation strategy when the long-term relationship is less

important than the outcome.

Check your answers with those on page 124.

Lesson 5 91

ASSIGNMENT 12: LEADERSHIP Read the following assignment in your study guide. Then, read Chapter 12 in your textbook.

Thinking About Leadership Leadership is a form of influence, but a leader isn’t necessarily a person with formal authority. Rather, leadership roles are evolving at various levels within an organization and involve various activities ranging from inspiring, negotiating, facilitating, and contributing to a larger vision of the culture, structure, and mission of the organization. Today’s leaders emerge not only through their commitment to do things right, but also through their efforts to do the right things—which in many cases involves shaping and implementing a vision and a cul- ture that’s ethical, innovative, and mindful of the advantages of a multicultural mindset.

Bearing this in mind, the material in Chapter 12 focuses on leadership as a process rather than a position. As explained by your textbook authors, “Leadership occurs where one or more members of a group or organization stimulate others to more clearly recognize their previously latent needs, desires, and potentialities and to work together toward their fulfillment.”

Traditional Approaches to Leadership Researchers in various fields have studied leaders and leadership from a variety of perspectives, summarized in Figure 12.1 on page 376.

For example, the trait approach considered leadership from the standpoint of identifying relevant personal characteristics. One early trait–based examination concluded that leaders may be described by a variety of characteristics including a strong impulse toward responsibility and task completion, persistence in the achievement of goals, creative problem- solving abilities, a talent for organization, and a willingness to seize the initiative in various situations.

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The behaviorist approach was formulated as an alternative to examining leadership in terms of personality traits, as an attempt to understand leaders in terms of what they do and how their behavior affects the behavior of others. During the 1940s, researchers at Ohio State University initiated a series of questionnaire-based studies that focused on two dimensions. The first, referred to as consideration, described behavior in terms of a leader’s demonstration of concern for the welfare of others. The second, referred to as the initiation of structure, focused on the degree to which leaders organized a group, defined work processes and distributed tasks.

The contingency approach to leadership examined leadership as a function of the combination of leaders’ characteristics (either trait based or behavioral) and the situation in which a leader emerges and functions. Essentially, the contingency approach suggested that different situations demand different styles of leadership. Accordingly, to be effective, leaders need to understand the fundamental characteristics of organizations and adapt their own behavior to lead in a way that best suits the organization. Business and management psychologist Fred Fiedler, for example, developed a contingency model that sug- gested that task-oriented leaders tend to be more effective in situations in which they can exert more influence in work processes while relationship-oriented leaders are more suc- cessful in situations over which they have less control.

Contemporary Approaches to Leadership Recent examinations of effective leadership, while still concerned with traits, tend to focus more on skills, competencies, and strategies. Some researchers consider certain traits and competencies, summarized in Figure 12.2 on page 378, more significant than others.

n Intelligence and self-understanding

n Self-confidence and self-esteem

n Energy and determination to succeed

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n Creativity

n Sociability, or interpersonal awareness

n Integrity

In their influential book, The Leadership Challenge, Santa Clara University professors Jim Kouzes and Barry Posner proposed that credibility had become one of the most impor- tant characteristics people want to see leaders demonstrate. Kouzes and Posner suggest an outline of five practices through which leaders demonstrate credibility. Briefly, these include

n Challenging established processes

n Inspiring a shared vision

n Enabling others to act

n Modeling the way

n Encouraging the heart

Contemporary scholars are also examining leadership in terms of style or approach. Transactional leadership involves an exchange (or transaction) between attributes or situations that are val- ued by both the leaders and followers. Transformational leadership—represented, for example by Nelson Mandela— develops when leaders and followers are mutually engaged in a process that raises both to higher levels of motivation. Moral leadership is more tightly focused on increasing the moral objectives and conduct of leaders and followers.

Some other leadership styles are considered values-based approaches. For example, servant leadership is founded on a commitment on the part of leaders that their actions will serve the needs of followers. Authentic leadership, meanwhile, is grounded in the proposition that the leader will remain com- mitted to his or her values, preferences, hopes, and aspirations, and will act in a way that’s consistent with those values and beliefs. Table 12.1 on page 382 summarizes some of the essential components of authentic leadership, which include self-awareness, the ability to entertain multiple per- spectives, and transparency.

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This section on leadership also looks at emerging leadership styles that emphasize shared or collaborative leadership approaches, in which leadership roles and responsibilities are dynamically distributed among small groups of motivated individuals. The emotional components of leadership style are also examined. Research in positive organizational behavior, a field of study introduced in Chapter 1, has generated a list of attributes associated with positive leadership, summarized in Table 12.2 on page 384.

The Ethics of Leadership Gradually, models of leadership are shifting away from a top- down approach, toward a more a more engaged process in which the motivations and actions of leaders are more closely aligned and sensitive to the values, motives, and aspirations of followers. In this context, leaders and followers are more strongly motivated to engage in a dialogue, through which new ideas and relationships are allowed to develop. In many cases, the responsibility for establishing such a dialogue falls on the leader, who is usually better positioned to create a forum in which members of a group can express their needs and interests.

The effect of globalization, meanwhile, along with concerns over environmental sustainability and interactions among members of different cultural groups requires additional sensitivity. German scholar Silke Astrid Eisenbeiss has sug- gested development of a cross-cultural framework for ethical leadership based on the central points of agreement among various world religions and philosophical systems. Summarized in Figure 12.4 on page 389, the four main elements of this framework include

n Humane orientation

n Justice orientation

n Responsibility and sustainability orientation

n Moderation orientation

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Creative Leadership The final section of Chapter 12 looks at the creative aspects of leadership, which, as you’ve seen, are becoming increasingly important in an environment characterized by rapid shifts and uncertainties. Figure 12.5 on page 390 illustrates a number of elements associated with creative leaders, but a few of the most significant ones can be summarized as

n A sense of purpose or passion that drives their actions in a particular direction

n Learning agility, or the capacity to learn from experiences, engage in self-reflection and self-critique, and apply what’s learned to future challenges

n Courage, an essential requirement for creativity and risk-taking

n Love and compassion

n Empathy

After you complete all the reading assignments and self- checks in this lesson, take your exam for Lesson 5.

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Self-Check 12 1. A contemporary view of leadership describes it as a/an _______ by which one or more people

influence others to _______.

2. According to your textbook authors, when does leadership occur?

__________________________________________________________

3. A strong drive for responsibility and task completion, vigor and persistence in the pursuit of

goals, and creativity and originality in problem solving are all associated with the _______

approach to understanding leadership.

a. trait c. contingency

b. behavior d. competency

4. The term _______ describes the extent to which the leader is concerned for the welfare of

those in the group.

5. According to Kouzes and Posner, what are the five ways through which leaders

establish credibility?

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

6. Which of the following styles of leadership occurs when leaders and followers engage with

each other in ways that raise one another to higher levels of morality and motivation?

a. Moral leadership c. Transactional leadership

b. Transformational leadership d. Servant leadership

7. A/An _______ leader is one who remains true to his or her values, preferences, hopes and

aspirations, and acts in a way that’s consistent with those values and beliefs.

8. _______ and _______ leadership at times involves peer or lateral influence, and at other

times may involve upward or downward influence.

Check your answers with those on page 124.

Organizational Context

ASSIGNMENT 13: ORGANIZATIONAL POWER AND POLITICS Read the following assignment in your study guide. Then, read Chapter 13 in your textbook.

Thinking About Power and Politics Because power and politics are so closely interconnected in organizational settings, they’re often examined together. Power is generally understood as the ability to influence people’s behavior, sometimes in spite of their preferences. Politics generally refers to the use of power and authority to influence organizational outcomes.

Early literature on governmental politics and political rulers has shaped many of our ideas about the nature of power and politics. One of the most influential early writers on the subject was the 16th century Italian diplomat and political theorist, Niccolò Machiavelli. In his book, The Prince, he proposed that a leader’s power can be assessed in terms of freedom from the influence of others and the extent to which that leader can exercise authority over others. Some of his more radical notions about the nature of those over whom power is exer- cised are considered outdated and even quite cynical. However, his central point remains accurate—that power is necessary to get things done.

Three hundred years later, German social theorist Max Weber wrote extensively about bureaucracy and the nature of power and authority. Weber saw legitimate power as authority based on one of three foundations: the charismatic personality of the person holding the power; tradition; and the legal-rational power of bureaucratically organized institutional groups that are based on rules, hierarchy, and relationships.

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Perspectives on organizational power continue to change. Central to our understanding is that power within organizations is latent, or hidden. It is a potential to influence. Only when this influence is actually used does it become visible as an act of authority, influence, persuasion, or force. During the mid to late 20th century, our understanding of organizational power and politics began to be questioned more openly. In the United States and many Western countries, the source of individual and organizational power began to be seen as derived from the consent of and approval of those over whom power is exercised. As you saw in Chapter 2, however, this view of power distance doesn’t apply to all national cultures.

Sources of Power for Individuals In the late 1950s, social scientists John French and Bertram Raven proposed a model of five distinct sources of individual power, summarized in Table 13.1 on page 409:

1. Legitimate power is based on accepted authority, such as title or official position.

2. Reward power is based on access to resources and the ability to reward people.

3. Coercive power is based on force and the ability to punish people.

4. Expert power is based on expertise, or access to information that others need.

5. Referent power is based on respect and the ability to serve as a role model.

If you refer to Chapter 2, you can see that countries such as the United States score relatively low in accepting power distance and relatively high in tolerating uncertainty. Consequently, people living in such cultures are more likely to question power and authority, and will seek ways to achieve balance in power relationships. Figure 13.2 on page 412

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illustrates how people respond to various sources of power. Politics, in this context, may be understood as an effort to gain personal power, or limit or balance the power of others.

In general, people employ four strategies of balancing power:

1. Reducing dependence by limiting their needs or demands

2. Gaining greater independence through seeking alternative sources of obtaining what they want or need

3. Gaining power by increasing other people’s dependence on them to supply what they need

4. Increasing dependence by limiting accesses to alternative sources of satisfying wants or needs

Within organizations, the tendency toward a more equitable distribution of power can be beneficial, because it tends to increase employee engagement, participation, and mutual respect between managers and employees. Note, however, that certain structural elements of organizational power—such as the relationship between position and authority—have remained fairly constant and are resistant to change. Acknowledging the role of these elements, such as opportunity, mobility, perceived authority, and reward systems, is essential to appreciating the influence of power and politics in organizational behavior.

Is Power a Positive Force or a Destructive Force? The question of political power in organizations evokes a classic double-edged-sword metaphor. As illustrated in Table 13.2 on page 416, power helps to ensure stability and survival of the organization, provides mechanisms for conflict resolution, defines leadership and managerial roles, and establishes processes for buy-in and learning. Conversely, power can be abused. Rigid structures can minimize engagement and involvement; they can limit opportunities for constructive conflict resolution. Figure 13.3 on page 417 illustrates the potentially constructive and destructive relationships that influence learning and change within in an organization.

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Managing Organizational Politics and Being Influential Various factors an can shift the balance of power within an organization and incite politicking. Change, uncertainty, and conflicting or ambiguous goals can justify claims put forth by some that their plan is the right one for the organization and convince others to side with them, which enhances their influence.

Strategies people use to intentionally influence others’ attitudes and behaviors are referred to as influence tactics. Among these, proactive influence tactics represent strategies designed to immediately and directly induce someone to change their approach or agree to something. Table 13.3 on page 420 describes some of these tactics and their effectiveness.

In an organizational context, then, positive political skill may be understood as an ability to effectively understand others at work and to use that knowledge to influence others to act in ways that enhance either one’s personal objectives or the goals of the organization. Politically skillful people effectively influence and control the responses of others through a com- bination of and an ability to adapt their behavior to change situations in ways that inspire support and trust. One aspect of political skill is recognizing that the way one presents oneself to others can determine how others view that person, a profi- ciency referred to as impression management.

Other skills, summarized in Figure 13.4 on page 422, include

n Social awareness, an aspect of emotional intelligence, the ability to understand the dynamics of social relationships and to understand other people’s motives and values

n Interpersonal influence, the ability to recognize and respond to changing situations and to convey this ability in a way that generates trust

n Networking ability, making personal connections with others

n Sincerity

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As you’ve learned in previous chapters, employee engagement and participation can have a profound and positive effect on distributing power more equitably within an organization and minimizing the incidence of negative politicking and power plays. A term that’s frequently used in this context is empowerment, which in its most basic form suggests delegating or sharing power, or creating conditions in which participants feel they have a more active role to influence decisions and processes.

In practice, empowerment can be functionally defined as an element of the structure of the organization. In such cases, known as relational constructs, power is a function of the rel- ative dependence or interdependence of the people involved. Relational constructs involve actually delegating or sharing power.

Empowerment can also be understood as a motivational construct—a process of encouraging the perception or expec- tation that hard work, achievement, and participation leads not only to personal advancement, reward, and recognition but advances the efficiency and productivity of the organization as a whole.

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Self-Check 13 1. Explain the distinction between power and politics.

__________________________________________________________

__________________________________________________________

__________________________________________________________

2. Max Weber proposed three types of power or dominion: _______, _______, _______.

3. According to Weber’s view, in bureaucracies authority is based on the position a person holds

and by _______, _______, and _______.

4. Identify the five common means by which organizations try to minimize their dependency on

external entities and people.

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

5. Which of the following sources of power is derived from people’s values and beliefs that some-

one has the right to exert influence over them, and that they have an obligation to comply?

a. Reward c. Legitimate

b. Coercive d. Referent

6. In contemporary settings, _______ involves efforts both to gain power and to limit or balance

the power of others.

7. According to Rosabeth Moss Kanter, _______, such as opportunity, mobility, perceived political

power, dependency, influence in garnering resources and rewards for subordinates, and

numerical representation, are critical to understanding the influence of power in organizational

behavior.

(Continued)

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ASSIGNMENT 14: ORGANIZATIONAL STRATEGY AND STRUCTURE Read the following assignment in your study guide. Then, read Chapter 14 in your textbook.

The Organizational Context Broadly speaking, the foundation of any organization is the vision conceived by its founders and maintained by those working to enact and maintain it. In essence, this vision defines the organization’s core ideology—what it stands for, its purpose, and values. It’s also forward-looking, describing what the organization aspires to become, achieve, or create.

At the same time, an organization exists, grows, and changes within a context that includes a number of variables. These include the external factors such as business and social envi- ronment in which the organization operates. Enacting the

Self-Check 13 8. _______ influence is a tactic used to accomplish an immediate task or purpose.

9. Political skill may be understood as the ability to _______ effectively at work, and to

use such knowledge to _______ others to act in ways that enhance one’s personal and/or

organizational goals.

10. _______ constructs of empowerment represent an enabling process aimed at creating

conditions that increase motivation and the development of feeling or personal efficacy.

a. Relational c. Fixed-sum

b. Motivational d. Personal engagement

Check your answers with those on page 125.

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vision also requires implementing certain internal elements, such as structures, strategies, as well as the information, tools, and processes needed to create products and services.

The Organizational Environment In an organizational context, the term environment refers to all the external factors that have the potential to affect the organization. Organizational theorists typically divide the environment into two categories.

The first category, the general environment, is understood to consist of a very broad set of factors, including social, political, cultural, and demographic developments. It also includes the global business environment, the various approaches to conduct- ing business that are specific to different national cultures.

The second category, the business environment, consists of specific segments with which the organization interacts or upon which it depends. These include customers, competitors, human resources, suppliers, financial institutions, government regulations, and the technologies on which the organization depends. Figure 14.2 on page 439 offers a view of the rela- tionship between the general and business environments.

Once the characteristics of both the general and the business environments are identified, managers can decide which are relevant and deserving of attention and which can—for the moment—be ignored. This process of determination is known as enactment. Of course, such determinations are rarely simple, largely due to environmental uncertainty, the level of unpre- dictability in both the general and business environments.

As you’ve seen, certain factors, such as global financial interdependence and the introduction of new technologies, can have a dramatic effect. The depth and severity of the effects is expressed in terms of the rate of change—which has as much to do with how quickly change is introduced as the degree to which the environment remains stable—and complexity, or the number and variety of business sectors affected by change. Table 14.1 on page 442 offers a chart depicting the degrees of uncertainty caused by the interaction of the rate of change and complexity.

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The Organization and Technology In an organizational context, the term technology refers not only to the various gadgets and physical tools needed to create goods and services. It also refers to information, work processes, and procedures that allow the organization to function. Different types of organizations require different kinds of technology. Manufacturing firms, which create physical products, rely on different technologies than do service firms, which deliver intangible commodities, such as financial advice, health care, or banking services.

Depending on the size of an organization and the resources available to it, managers may need to purchase the technologies required for operations. Some organizations are large enough to have internal research and development (R & D) departments, which are devoted to creating tools and techniques to improve products and services.

To keep up to date, rapid developments in the field of technology require managers to carefully examine their environments, in order to pass along innovations to their customers and train employees. Depending on the nature of the organization, some technologies may have greater relevance than others do.

n Data mining, for example, is an interdisciplinary field that relies on complex computational methods and technologies to tap into huge collections of information quickly and efficiently, to find precisely the right pieces of information to strengthen marketing strategies and increase sales.

n Increasing concerns over sustainability have opened up opportunities for new businesses (and incentives for existing organizations) to invest in renewable energy sources and green technology.

Of course, the pace of technological change affects organizations by changing the way people work, as illustrated in Figure 14.3 on page 447. In many cases, new technologies can improve efficiency and productivity. At the same time, changing tech- nologies require managers and employees to keep their skills current, which can impose some degree of stress on managers and employees alike. Additionally, as noted in Chapter 9, although high-tech developments can facilitate virtual and global communication, personal contact between employees and managers may be negatively affected.

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Strategic Basics: Mission, Goals, and Strategy While a vision serves as the founding principle or set of goals or values that guide the organization, implementing that vision—including the environment, technology, structure, and culture—involves more concrete steps. The first of these is the formulation of a mission statement, a formal document outlining the organization’s purpose and function. That statement typically serves as the basis for determining the organization’s goals, the formal set of objectives that identify what is to be done and when.

The how behind achieving those goals is determined by strategy, the action plan that defines an organization’s structure, processes, and procedures. The development and execution of strategy is formally referred to as the strategic management process. The development phase is known as strategic formulation, while the execution phase is typically known as strategy implementation.

One of the first steps in strategic formulation is analysis of both the general and the business environments. Afterward, those responsible for formulating strategy conduct a SWOT analysis (strengths, weaknesses, opportunities, and threats), an assessment of resources, risk, and opportunities. This analysis evaluates internal strengths and weaknesses and external opportunities and threats. This evaluation helps managers draw up specific strategies to align strengths with opportunities and minimize weaknesses that may pose threats to the organization’s goals and mission. Table 14.2 on page 451 offers a simple SWOT analysis matrix.

Harvard professor Michael Porter identifies two basic types of strategies. Low-cost strategies involve designing, producing, marketing, and delivering products or services more efficiently than competitors. Differentiation strategies focus on offering unique and different products of superior quality, usually with special features. In addition to these two basic types of strategy, Porter identifies a dimension, referred to as scope, which describes whether the organization’s strategy is designed to appeal to a wide target, a niche, or something in between.

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Organizational Structure One big piece of the organizational puzzle is structure, which in business terms refers to the way employees are organized to achieve the organization’s missions and carry out the strategies devised by management. In most organizations, this structure is formally diagrammed in an organizational chart, a diagram that illustrates the ranks and relationships among various jobs or positions.

When formalizing the structure of an organization, several basic components need to be considered. Summarized in Table 14.3 on page 453, these include

n Formalization, or the creation of formal documents outlining procedures, activities, and behaviors

n Specialization, the degree to which individuals, teams, and department perform highly specific tasks

n Standardization, the extent to which tasks are performed according to a consistent or uniform process

n Centralization, the level at which decisions are made

n Span of control, the number of employees reporting to a manager

n Departmentation, the way in which the organization is divided into divisions, departments, groups, and/or teams

In addition, attention must be paid to the relationships between line employees and staff. Line employees are the workers directly involved in production or delivering services. Staff consists of employees and managers who support line employees in various ways—for example, human resources managers.

Depending on the nature and purpose of an organization, the overall structure can be characterized in one of two ways. Organic organizations are typically informal. There isn’t a lot of specialization or standardization, processes are highly inte- grated, and decision making is a largely decentralized process. Mechanistic organizations, which are represented by more traditional bureaucracies, are highly formalized, specialized, and standardized, with most decisions made at or near the

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top of the organization’s management. Though it must be noted that most organizations are somewhere between these extremes, the distinctive characteristics of each type of structure are summarized in Table 14.4 on page 456.

Additionally, your textbook examines four traditional types of organizational structures. Each is illustrated separately, and all four are compared in Table 14.5 on page 460.

1. Functional, in which employees are organized according to functional specialization (illustrated in Figure 14.6 on page 456)

2. Product/divisional, in which employees are organized according to the product or service they work on, or the geographic region where they work (Figure 14.7)

3. Hybrid, a combination of functional and product structures common to very large organizations that operate in many different locations (Figure 14.8)

4. Matrix, a highly integrated, flexible structure comprised of project teams that include both functional specialists and product or project specialists, designed to respond quickly to customer demands and environmental uncer- tainty (Figure 14.9)

Managing in an Uncertain Environment Chapter 14 concludes with a brief examination of strategies that managers can adopt to maintain effectiveness and remain competitive in today’s rapidly changing world. Perhaps the most important aspect of this work involves constant monitoring of the environment, technology, strategy, structure, and culture, and the ways in which they interact and influence one another. Gathering information about the environment, including mar- keting research and competitive analysis, is crucial. At the same time, adapting to the information requires flexibility, innovation, and a creative approach to decision making. Additionally, through lobbying efforts and making strategic alliances with suppliers, competitors, and customers, organi- zations can help to shape the environment in which they function.

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Self-Check 14 1. The starting point for any organization is a/an _______ that describes where the firm wants

to be, as well as its purpose and values.

2. Identify and define the two main factors that create uncertainty in the general environment.

__________________________________________________________

__________________________________________________________

3. The process by which managers identify the effects of relevant aspects the general and

business environments is known as _______.

4. Strategic _______ is the process of forging a cohesive integrated set of strategies designed to

deal with the environment and achieve the business mission and goals.

a. implementation c. management

b. formulation d. planning

5. What does the acronym SWOT stand for?

__________________________________________________________

6. A _______ strategy is based on providing unique and different products of superior quality

with special features.

7. The term _______ refers to the way human resources are organized to achieve the

company’s mission.

a. mission statement c. structure

b. organization chart d. staff

8. The biggest challenge for an organization designed according to a/an _______ structure con-

sists in encouraging various departments to interact and coordinate their activities to achieve

the goals of the organization.

9. One option available to very large organizations that operate in many different locations is to

combine the _______ and _______ structures to form a hybrid structure.

10. The term _______ refers to the process of interacting with the environment to gather

information and inform the environment about the organization’s activities.

Check your answers with those on page 125.

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ASSIGNMENT 15: ORGANIZATIONAL CULTURE AND CHANGE Read the following assignment in your study guide. Then, read Chapter 15 in your textbook.

The Relationship Between Culture and Change As has been noted throughout the material you’ve already studied, culture embraces a deeply held set of beliefs, norms, values, and perceptions that are highly resistant to change. Yet, paradoxically, culture can also serve as a support or seedbed for change. If you look back at Table 2.5 on page 49, for example, you can see how the frugality and hard work of the Traditionalist generation helped to create a basis for the economic freedom for Baby Boomers; who, in turn, created an atmosphere of optimism and nonconformity that helped to shape the values and perceptions of the Baby Buster generation.

However, cultural change does not necessarily occur easily or quickly. Certain hurdles need to be overcome. These include cognitive, motivational, and political hurdles. For organizations in particular, there are also resource hurdles to overcome— time, money, energy, and technology might not be available to adapt to a new way of doing business.

In some cases, incremental change can occur, as managers and employees adapt or fine-tune processes and procedures. By contrast, discontinuous change involves a fundamental, dramatic, and sometimes abrupt shift in direction. Strategic change, as exemplified in the case study of J. Crew in Chapter 7, involves organization-wide and long-term shift in mission, vision, and/or strategy, usually implemented by top manage- ment. Grassroots change, on the other hand, occurs in the opposite direction, as employees at lower levels of an organi- zation press for changes at the strategic level.

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Organizational Culture The concept of organizational culture borrows from anthropology to describe a group of people who, in general, share a unique set of values, beliefs, perceptions, norms, and patterns of behavior. Edgar Schein, a former professor at the MIT Sloan School of Management, distinguished three elements of orga- nizational culture:

n Artifacts and creations, which include the social and physical environment, technological preferences, language patterns, and day-to-day routines

n Values, or ideas about the way the organization ought to be

n Basic underlying assumptions, or patterns of belief and behavior that are so ingrained that they’re not even questioned

These elements are transmitted explicitly to individual employees during their introduction to the organization, chiefly through orientation. They’re also reinforced in obvious ways through performance reviews, promotions, reinforce- ment, and punishment. But they’re also more subtly instilled through socialization with others in the workplace. The values, norms, and assumptions transmitted both overtly and tacitly are gradually assimilated by individual employees and translated into behavior.

As you’ll learn, changes in organizational culture can be accomplished by focusing on changes in behavior. University of Toronto Professor Gary P. Latham proposed a five-step process to behavioral change. The first step is to establish an overar- ching or superordinate goal that captures the imagination and motivates people on an emotional level. From there he moves on to establishing SMART goals and making sure that managers maintain integrity and make themselves accessible to employees.

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Approaches to Understanding Change As in any social group, there are forces in organizations that support change—known as driving forces—and forces that oppose change—referred to as restraining forces. One approach to understanding how these forces operate is to conduct a force field analysis. As depicted in Figure 15.3 on page 483, this sort of analysis involves listing the driving forces in one column and the restraining forces in a second column. To bring about a change, there must be a shift in the balance of forces. Either the driving forces need to be increased, or restraining forces must be reduced.

Another approach, known as organizational learning, begins with the assumption that as individuals learn new skills, processes, and approaches, their insights, attitudes, perceptions, and so on gradually permeate the organization. This premise builds on the distinction made by two business professors, Chris Argyris and Donald Schön, between espoused theories—the views we consciously believe guide our behavior—and theories-in-use— the views that actually govern our behavior.

Whatever our views, we can learn how to approach things differently in two ways. We can learn new strategies to achieve desired goals, a process known as single-loop learning. Alternatively, we can change our goals in a way that requires us to learn new strategies to a achieve them, a process called double-loop learning.

Yet another approach, which emerged from biological studies before being applied to social and organizational research, is known as systems theory. According to this model the system—in this case, an organization—receives inputs from the environment, which may take the form of customer demands, financial pressures, or legal obligations. These inputs are processed through the system and trans- formed into outputs, such as products or services. These outputs flow back into the environment, affecting customers, clients, and so on, who then provide feedback, which serves as new input. This process is illustrated in Figure 15.5 on page 485.

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On a larger scale, some theorists argue that change comes about, not through externally controlled shifts and adaptations, but dynamically, through a deep awareness of and connection to large-scale social and cultural evolution. The central concept of this theory of organizational change is known as emergence. The idea behind this concept is that social change follows a pattern similar to change in the natural world: several small adaptations gradually create a new dynamic.

Newer Approaches to Bringing About Change Traditionally, organizational change has been a top-down process, formulated by leaders and managers and implemented through new or revised policies and procedures. Such changes are by and large structural and may involve reorganization or a shift from one type of structure to another. Successful reorganization or restructuring involves more than moving around boxes on an organizational chart, however. It requires thoughtful and careful analysis of the ways in which structures, processes, and systems are currently integrated and how they may be amended in ways that enhance flexibility and efficiency.

Organization development (OD) is an approach to organizational change that has gained more attention over the past several decades. Focusing on people, processes, and improvements to the entire system rather than on separate parts of an organization, OD typically involves the assistance of a con- sultant or facilitator from outside the organization. The consultant’s role is to provide

n Valid and useful information that accurately describes the various aspects that contribute to a problem that needs to be solved

n Free choice for the client to make decisions

n Internal commitment on the part of the client to own the choices and decisions made and implemented

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The basic principles of OD are illustrated in Figure 15.6 on page 491. OD practitioners, meanwhile employ a variety of techniques to bring about organizational change. These include

n T-groups (the T stands for training), unstructured groups of 10 to 12 members and a facilitator, who come together over an extended period, creating their own agendas, norms, expectations, and models for appropriate behavior

n Process consultation, which involves discussions about issues including communication, the roles and functions of group members, group problem-solving and decision making, and the roles of leadership, power, and authority

n Third-party intervention, a process similar to arbitration or negotiation, aimed at resolving conflicts

n Survey feedback, through which responses to question- naires, interviews, or focus groups are analyzed and the results communicated to participants so they can devise corrective strategies

n Quality of work life programs, designed to improve social, psychological, and task-oriented conditions and situations

n Team building

A more contemporary approach to organizational development, known as appreciative inquiry (AI), combines elements of OD with positive organizational behavior principles to create interventions that focus on building strengths rather than focusing on weaknesses. The basic phases of AI—discovery, dream, design, and destiny—are summarized in Table 15.1 on page 493.

Steps in Organizational Transformations While most of the approaches discussed in Chapter 15 focus on strategies that address specific problems, the rapid pace of change occurring in the contemporary environment is raising a call for leaders and managers to implement transformation on a

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much larger scale. Professors Robert and Janet Denhardt of the USC Price School of Public Policy have proposed a five-step model for leaders who wish to bring about large-scale organizational transformation. The steps include

1. Assessing the organization’s environment and ascertaining the need for change

2. Devising plans that are simultaneously strategic and pragmatic

3. Building support within the organization through communication and modeling

4. Implementing specific changes while cultivating organization-wide positive attitude toward change

5. Institutionalizing the changes

Renowned executive consultant David A. Nadler and his colleagues have proposed a model for change that involves five phases:

1. Diagnosis of the strengths, weaknesses, and goals of the organization

2. Clarification of the vision for the future and building coalitions among staff members

3. Launching major changes and communicating the new organizational identity

4. Consolidating and refining changes implemented in phase three

5. Continuing to refine the changes and evaluating their effects, with the intention of building long-term sustainability

The Ethics of Managing Change Inevitably, organizational change creates some conflicts within the organization, particularly among those who are comfortable with the old way of doing things and those in the lower levels of the work force who might perceive that changes are being imposed on them without consultation or input. Implementing change in an ethical manner requires, first of all, that managers do not initiate change out of self-interest.

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Secondly, the architects and agents of change must be mindful of presenting even the appearance of manipulation or coercion. Finally, the most ethical approach to managing change is to involve as many stakeholders in the process as possible. Engagement and participation are as important in effecting change as in any other aspect of motivating behavior.

After you complete all the reading assignments and self- checks in this lesson, take your exam for Lesson 6.

Self-Check 15 1. Identify the four kinds of change that can occur in organizations.

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

2. What is meant by the artifacts and creations of organizational culture?

__________________________________________________________

__________________________________________________________

__________________________________________________________

3. The first step in Gary Latham’s process of behavioral change in an organization involves

establishing _______.

4. A force-field analysis involves examining the _______ that support the direction of a proposed

change and the _______ that oppose the direction of the proposed change.

5. Learning new strategies that will lead to the attainment of desired goals is referred

to as _______.

(Continued)

Lesson 6 117

Self-Check 15 6. Which of the following theories involves input, process, output, and feedback?

a. Espoused theory c. System theory

b. Theories-in-use d. Emergence

7. _______ structures are highly formalized, specialized, and centralized, while _______ structures

emphasize horizontal rather than vertical relationships.

8. T-groups, process consultation, survey feedback, and quality of life programs are all strategies

and techniques associated with _______.

9. Which of the following phases of appreciative inquiry involves creating possibility propositions

of the ideal organization?

a. Dream c. Discovery

b. Design d. Destiny

10. According to the model proposed by Nadler and his colleagues, the third phase of the change

process is referred to as _______.

Check your answers with those on page 126.

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NOTES

Self-Check 1 1. Individual, Group, Organizational, and Social,

Economic and Ethical Context

2. Group size and composition, cohesion, trust, team building and decision making

3. compensation (rewards), physical or economic abuse (punishment)

4. Based on a study of workers at the Hawthorne Works in Chicago, the Hawthorne effect is the finding that people change their behavior when they know they’re being observed.

5. managers, leaders

6. Negotiator, entrepreneur, disturbance handler, and resource allocator

7. Role modeling, reward system, hiring decision, strategy and structure

8. Globalization, complexity, connectedness

9. Positive organizational behavior

10. corporate social responsibility

Self-Check 2 1. beliefs and values; acquired and transmitted

2. c

3. heterogeneous

4. primary dimensions of diversity

5. a

6. high-context

7. d

8. c

9. The United States of America, Taiwan, and Singapore

10. a

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Self-Check 3 1. heredity, environment

2. a

3. Communication, conflict management, negotiation, and team building

4. Emotional awareness, accurate self-assessment, and self-confidence

5. b

6. a

7. Conscientiousness, extraversion/introversion, openness to experience, agreeableness

8. d

9. The conventional level

10. c

Self-Check 4 1. objective, subjective

2. selecting, interpreting, and using

3. closure

4. b

5. schemas

6. c

7. external

8. d

9. a

10. Recognizing the biases, developing awareness of the areas and situations in which biases are most likely to operate, offering constant reminders and support, and providing opportunities for frequent contact and interaction

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Self-Check 5 1. Motivation, action

2. Motivation, ability/capacity, and opportunity

3. d

4. b

5. expectancy

6. Goal theory

7. achievement, power, affiliation

8. law of effect

9. hygiene or extrinsic factors, motivating or intrinsic factors

10. c

Self-Check 6 1. physiological, behavioral, psychological

2. b

3. alarm

4. exhaustion

5. eustress

6. c

7. a

8. d

9. Engagement

10. preventative

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Self-Check 7 1. Creativity is the generation of new and useful ideas.

Innovation is the successful implementation of those ideas.

2. b

3. preparation

4. d

5. incubation

6. a

7. involvement, engagement

8. intrinsically creative jobs

9. d

10. c

Self-Check 8 1. Intelligence gathering, direction setting, the

generation of alternatives, selection of a solution, and solution implementation.

2. problem

3. nonprogrammed

4. c

5. bottleneck

6. Clear priorities, focus on action, clarity, timeliness, the right decision making, measure and reward, participation

7. d

8. incrementalism, organizational process

9. b

10. nominal group technique

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Self-Check 9 1. shared meaning

2. sending some type of message, the receiver, feedback

3. encode, decode

4. d

5. filtering

6. b

7. relational, emotional

8. a

9. supportive communication

10. Clarity, courtesy, conciseness, confidence, correctness, conversational tone

Self-Check 10 1. highly interdependent, shared, team members

2. c

3. Heterogeneous

4. b

5. Central norms

6. cohesion, conformity

7. The storming stage

8. norming

9. d

10. facilitators

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Self-Check 11 1. ongoing

2. accomplishing their goals

3. c

4. Interpersonal conflict

5. a

6. goal incompatibility

7. attitudinal

8. b

9. the winner’s curse

10. Firm competition

Self-Check 12 1. process; pursue a commonly held objective

2. Leadership occurs where one or more members of a group or organization stimulate others to more clearly recognize their previously latent needs, desires, and potentialities and to work together toward their fulfillment.

3. a

4. consideration

5. Challenging the process, inspiring a shared vision, enabling others to act, modeling the way, and encouraging the heart

6. b

7. authentic

8. shared, group-centric

Self-Check 13 1. Power is the ability to influence others. Politics generally

refers to the use of power and authority to influence organizational outcomes.

2. Charismatic, traditional, legal-relational.

3. rules, hierarchy, reporting relationships

4. Maintaining alternatives, seeking prestige, engaging in cooperative strategies, contracting, and co-opting those who impose threats

5. c

6. politics

7. structural determinants

8. Proactive

9. understand others; influence

10. b

Self-Check 14 1. vision

2. The first factor is the rate of change, which refers to the speed at which various elements in the environment change. The second is complexity, which refers to the number of sectors an organization has to consider in the enactment process.

3. enactment

4. b

5. Strengths, weaknesses, opportunities, and threats

6. differentiation

7. c

8. functional

9. functional, product

10. boundary spanning

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Self-Check 15 1. Incremental change, discontinuous change, strategic

change, and grassroots change

2. The social and physical environment, physical layout, technological preferences, typical language patterns, and the day-to-day operating routines that guide people’s behavior

3. a superordinate goal, the purpose of which is “to capture the imagination, hence to galvanize people to take action.”

4. driving forces; restraining forces

5. single-loop learning

6. c

7. Mechanistic; organic

8. organization development

9. b

10. action

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