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1 MAKING OB WORK FOR ME

What Is OB and Why Is It Important? 2

MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 2 WINNING AT WORK 3 WHAT’S AHEAD IN THIS CHAPTER 3

1.1 THE VALUE OF OB TO MY JOB AND CAREER 4 How OB Fits into My Curriculum and Influences My

Success 5 OB IN ACTION: Google Search: How Can We

Keep Talented Employees? 6 SELF-ASSESSMENT 1.1: How Strong Is My

Motivation to Manage? 7 Employers Want Both Hard and Soft Skills 8 How OB Fits into My Career 9

1.2 RIGHT VS. WRONG—ETHICS AND MY PERFORMANCE 12 Cheating 12 Ethical Lapses—Legality, Frequency, Causes, and

Solutions 13 OB IN ACTION: Wrong? Absolutely! Illegal?

Seemingly Not. 14 OB IN ACTION: The Whistle-Blower’s Dilemma 15 SELF-ASSESSMENT 1.2: Assessing My

Perspective on Ethics 19

1.3 APPLYING OB TO SOLVING PROBLEMS 21 A 3-Step Approach 21 Tools to Reinforce My Problem-Solving Skills 23 SELF-ASSESSMENT 1.3: Assessing My

Problem-Solving Potential 23

1.4 STRUCTURE AND RIGOR IN SOLVING PROBLEMS 24 The Person–Situation Distinction 24 PROBLEM-SOLVING APPLICATION: Technology: A

Situation Factor that Affects My Performance 25 Levels—Individual, Group/Team, and

Organization 27 Applying OB Concepts to Identify the Right

Problem 27

1.5 THE ORGANIZING FRAMEWORK FOR UNDERSTANDING AND APPLYING OB 28 A Basic Version of the Organizing Framework 28 Using the Organizing Framework for Problem

Solving 29 OB IN ACTION: Life Is Sweeter on Mars 30 Applied Approaches to Selecting a Solution 31 Basic Elements for Selecting an Effective

Solution 32

1.6 PREVIEW AND APPLICATION OF WHAT I WILL LEARN 33 The 3-Step Problem-Solving Approach 33 The Organizing Framework 33 Hypothetical Problem-Solving Scenario 35 Our Wishes for You 37

What Did I Learn? 38 PSAC: United Airlines: How Do We Get There from Here? 41 Legal/Ethical Challenge: To Tell or Not to Tell? 43

PART ONE Individual Behavior 1

xx CONTENTS

3 INDIVIDUAL DIFFERENCES AND EMOTIONS

How Does Who I Am Affect My Performance? 77

MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 77 WINNING AT WORK 79 WHAT’S AHEAD IN THIS CHAPTER 79

3.1 THE DIFFERENCES MATTER 80

3.2 INTELLIGENCES: THERE IS MORE TO THE STORY THAN IQ 82 Intelligence Matters . . . And We Have More Than We Think 82 Practical Implications 85 OB IN ACTION: Smarts and Money 86

3.3 PERSONALITY, OB, AND MY EFFECTIVENESS 87 There Is More to Personality Than Liking and Fit 87 The Big Five Personality Dimensions 88 SELF-ASSESSMENT 3.1: What Is My Big Five Personality

Profile? 89 Hail the Introverts 89 Proactive Personality 89 OB IN ACTION: How to Thrive as an Introvert 90 SELF-ASSESSMENT 3.2: How Proactive Am I? 91 Personality and Performance 92 Personality Testing at Work 93 APPLYING OB: Acing Employee Tests 93 There Is No “Ideal Employee” Personality 94

3.4 CORE SELF-EVALUATIONS: HOW MY EFFICACY, ESTEEM, LOCUS, AND STABILITY AFFECT MY PERFORMANCE 95 Self-Efficacy—“I Can Do That” 96 Self-Esteem—“Look in the Mirror” 98

Locus of Control: Who’s Responsible—Me or External Factors? 99 Emotional Stability 100 OB IN ACTION: Alphabet’s Financial Chief Avoided Pitfalls that

Stymied Others 101 Three Practical Considerations for Core Self-Evaluations 102 SELF-ASSESSMENT 3.3: How Positively Do I See Myself? 103

3.5 THE VALUE OF BEING EMOTIONALLY INTELLIGENT 104 What Is Emotional Intelligence? 104 SELF-ASSESSMENT 3.4: What Is Your Level of Emotional

Intelligence? 105 PROBLEM-SOLVING APPLICATION: “Some days you’re the

fire hydrant and some days you’re the dog.” 106 Benefits of EI 107

3.6 UNDERSTAND EMOTIONS TO INFLUENCE PERFORMANCE 109 Emotions—We All Have Them, but What Are They? 109 Emotions as Positive or Negative Reactions to Goal

Achievement 110 APPLYING OB: Do You Procrastinate? Blame Your

Emotions! 110 Besides Positive and Negative, Think Past vs. Future 111 How Can I Manage My Negative Emotions at Work? 111 OB IN ACTION: The Good and Bad of Anger at Work 112

What Did I Learn? 114 PSAC: Amazon to Competition: We Will Crush You! Amazon to Employees: We Will Churn You! 117 Legal/Ethical Challenge: Companies Shift Smoking Bans to Smoker Ban 119

2 VALUES AND ATTITUDES

How Do They Affect Work-Related Outcomes? 44

MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 44 WINNING AT WORK 45 WHAT’S AHEAD IN THIS CHAPTER 45

2.1 PERSONAL VALUES 46 Schwartz’s Value Theory 46 SELF-ASSESSMENT 2.1: What Are My Core Values? 49 The Dynamics of Values 49

2.2 PERSONAL ATTITUDES AND THEIR IMPACT ON BEHAVIOR AND OUTCOMES 50 OB IN ACTION: Hospitality Industry Uses Attitude Surveys to

Target Causes of Turnover 51 Personal Attitudes: They Represent Your Consistent Beliefs and

Feelings about Specific Things 51 Attitudes Affect Behavior via Intentions 53 PROBLEM-SOLVING APPLICATION: Southwest Pilots Stage

an Informational Picket. What Should Management Do? 54

2.3 KEY WORKPLACE ATTITUDES 56 Organizational Commitment 56 Employee Engagement 58 SELF-ASSESSMENT 2.2: To What Extent Am I Engaged in My

Studies? 60

OB IN ACTION: Companies Foster Employee Engagement in Different Ways 60

Perceived Organizational Support 61

2.4 THE CAUSES OF JOB SATISFACTION 62 SELF-ASSESSMENT 2.3: How Satisfied Am I with My Present

Job? 62 At a Glance: Five Predominant Models of Job Satisfaction 63 A Shorter Walk to Work 64

2.5 MAJOR CORRELATES AND CONSEQUENCES OF JOB SATISFACTION 66 Attitudinal Outcomes of Job Satisfaction 66 PROBLEM-SOLVING APPLICATION: What to Do About

Bullying 67 Behavioral Outcomes of Job Satisfaction 68 Organizational-Level Outcomes of Job Satisfaction 71

What Did I Learn? 72 PSAC: Employee Attitudes and Turnover Are Issues at Yahoo! 75 Legal/Ethical Challenge: What Should Management Do About an Abusive Supervisor? 77

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5 FOUNDATIONS OF EMPLOYEE MOTIVATION

How Can I Apply Motivation Theories? 160

MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 160 WINNING AT WORK 161 WHAT’S AHEAD IN THIS CHAPTER 161

5.1 THE WHAT AND WHY OF MOTIVATION 162 Motivation: What Is It? 162 The Two Fundamental Perspectives on Motivation:

An Overview 163

5.2 CONTENT THEORIES OF MOTIVATION 164 McGregor’s Theory X and Theory Y 164 Maslow’s Need Hierarchy Theory: Five Levels of Needs 164 Acquired Needs Theory: Achievement, Affiliation,

and Power 165 SELF-ASSESSMENT 5.1: Assessing Your Acquired Needs? 166 Self-Determination Theory: Competence, Autonomy, and

Relatedness 168 Herzberg’s Motivator-Hygiene Theory: Two Ways to Improve

Satisfaction 169 PROBLEM-SOLVING APPLICATION: What’s Going on at the

Arizona Department of Child Safety 171

5.3 PROCESS THEORIES OF MOTIVATION 173 Equity/Justice Theory: Am I Being Treated Fairly? 173 SELF-ASSESSMENT 5.2: Measuring Perceived Interpersonal

Treatment 176 Expectancy Theory: Does My Effort Lead to Desired

Outcomes? 178

4 SOCIAL PERCEPTION AND MANAGING DIVERSITY

Why Are These Topics Essential for Success? 122

MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 122 WINNING AT WORK 124 WHAT’S AHEAD IN THIS CHAPTER 124

4.1 PERSON PERCEPTION 125 A Model of Person Perception 125 OB IN ACTION: How Perception of Apologies Differs in the

United States and Japan 128 Managerial Implications of Person Perception 129

4.2 STEREOTYPES 131 Stereotype Formation and Maintenance 131 Managerial Challenges and Recommendations 132

4.3 CAUSAL ATTRIBUTIONS 133 Kelley’s Model of Attribution 133 Attributional Tendencies 135 Managerial Application and Implications 135

4.4 DEFINING AND MANAGING DIVERSITY 136 Layers of Diversity 136 Affirmative Action vs. Managing Diversity 138

4.5 BUILDING THE BUSINESS CASE FOR MANAGING DIVERSITY 140 Business Rationale 140 OB IN ACTION: Companies Develop Products to Fit the

Laundry Habits of Men 140

Trends in Workforce Diversity 142 SELF-ASSESSMENT 4.1: What Are Your Attitudes Toward

Working with Older Employees 145

4.6 BARRIERS AND CHALLENGES TO MANAGING DIVERSITY 146 SELF-ASSESSMENT 4.2: Assessing an Organization’s Diversity

Climate 148

4.7 ORGANIZATIONAL PRACTICES USED TO EFFECTIVELY MANAGE DIVERSITY 149 Framework of Options 149 How Companies Are Responding to the Challenges of

Diversity 150 PROBLEM-SOLVING APPLICATION: 64-Year-Old Male

Sues Staples for Wrongful Termination and Age Discrimination 152

SELF-ASSESSMENT 4.3: How Does My Diversity Profile Affect My Relationships with Other People? 153

What Did I Learn? 154 PSAC: White, Male, and Asian: The Diversity Profile of Technology Companies 157 Legal/Ethical Challenge: Swastikas and Neonatal Care 159

PROBLEM-SOLVING APPLICATION: Corporate Boards Decide to Lower the Instrumentalities between CEO Performance and Pay 180

PROBLEM-SOLVING APPLICATION: A High School Principal Uses Principles of Expectancy Theory to Motivate Students 182

Goal-Setting Theory: How Can I Harness the Power of Goal Setting? 183

5.4 MOTIVATING EMPLOYEES THROUGH JOB DESIGN 185 Top-Down Approaches—Management Designs Your Job 186 OB IN ACTION: Job Swapping Is the Latest Application of Job

Rotation 187 Bottom-Up Approaches—You Design Your Own Job 190 SELF-ASSESSMENT 5.3: To What Extent Have I Used Job

Crafting? 191 Idiosyncratic Deals (I-Deals)—You Negotiate the Design

of Your Job 192 SELF-ASSESSMENT 5.4: Creating an I-Deal 192

What Did I Learn? 193 PSAC: Dan Price, CEO of Gravity Payments, Established a Minimum Salary of $70,000 for All Employees 196 Legal/Ethical Challenge: Should Senior Executives Receive Bonuses for Navigating a Company through Bankruptcy 198

xxii CONTENTS

7 POSITIVE ORGANIZATIONAL BEHAVIOR

How Can I Flourish at School, Work, and Home? 250

MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 250 WINNING AT WORK 252 WHAT’S AHEAD IN THIS CHAPTER 252

7.1 THE VALUE OF POSITIVE ORGANIZATIONAL BEHAVIOR 253 Two Scenarios—Which Do You Prefer? 253 A Framework of Positivity 254 The Benefits of Positive OB Extend beyond Good

Performance 255 PROBLEM-SOLVING APPLICATION: Whole Foods Market:

More than Profits and More than Organics 259

7.2 THE POWER OF POSITIVE EMOTIONS 260 Beyond Happy vs. Sad 260 Positive Emotions Are Contagious 261 How Much Positivity Is Enough? 263 SELF-ASSESSMENT 7.1: Learn Your Positivity Ratio? 265

7.3 FOSTERING MINDFULNESS 266 Mindlessness vs. Mindfulness 266 OB IN ACTION: Does the Use of Headphones Help Achieve

Mindfulness? 267 Inhibitors of Mindfulness 268 Benefits of Mindfulness 269

6 PERFORMANCE MANAGEMENT

How Can You Use Goals, Feedback, Rewards, and Positive Reinforcement to Boost Effectiveness? 200

MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 200 WINNING AT WORK 202 WHAT’S AHEAD IN THIS CHAPTER 202

6.1 PERFORMANCE MANAGEMENT PROCESSES 203 Effective Performance Management 203 Common Uses of Performance Management 204 PROBLEM-SOLVING APPLICATION: How Much Would You

Pay Fannie and Freddie? 205 What Goes Wrong with Performance Management 205 The Importance of Management and Leadership 206 OB IN ACTION: The Deloitte Way: “Snapshots” and

“Check-ins” 207

6.2 STEP 1: DEFINE PERFORMANCE—EXPECTATIONS AND SETTING GOALS 209 Do You Want to Perform or Learn? 209 Managing the Goal-Setting Process 210 Contingency Approach to Defining Performance and

Setting Goals 213

6.3 STEP 2: PERFORMANCE MONITORING AND EVALUATION 214 Monitoring Performance—Measure Goals Appropriately and

Accurately 215 OB IN ACTION: The Challenges Grow as Employee Monitoring

Becomes More Sophisticated and Pervasive 215 Evaluating Performance 217

6.4 STEP 3: PERFORMANCE REVIEW, FEEDBACK, AND COACHING 219 What Effective Feedback Is . . . and Is Not 219 The Value of Feedback 220 If Feedback Is So Helpful, Why Don’t We Get and Give More? 220 Two Functions of Feedback 221 Important Sources of Feedback—Including Those Often

Overlooked 221 OB IN ACTION: How Do You Spell Feedback and

Self-Improvement? Z-A-P-P-O-S! 223

Who Seeks Feedback, Who Doesn’t, and Does It Matter? 224 Your Perceptions Matter 225 SELF-ASSESSMENT 6.1: What Is My Desire for Performance

Feedback? 227 Feedback Do’s and Don’ts 227 Today’s Trends in Feedback 227 Coaching—Turning Feedback into Change 228

6.5 STEP 4: PROVIDING REWARDS AND OTHER CONSEQUENCES 229 Key Factors in Organizational Rewards 229 Types of Rewards 229 SELF-ASSESSMENT 6.2: What Rewards Do I Value

Most? 230 Distribution Criteria 231 Desired Outcomes of the Reward System 231 Be Sure You Get the Outcomes You Desire 232 Total and Alternative Rewards 233 OB IN ACTION: Foosball? No Thanks. Stock that Matters?

Sign Me Up! 234 Why Rewards Often Fail and How to Boost Their

Effectiveness 234 PROBLEM-SOLVING APPLICATION: Garbage . . . Not Just the

Work but the Outcomes Too 235 Pay for Performance 236 Making Pay for Performance Work 237

6.6 REINFORCEMENT AND CONSEQUENCES 238 The Law of Effect—Linking Consequences and Behaviors 238 Using Reinforcement to Condition Behavior 238 Contingent Consequences 239 Positive Reinforcement Schedules 240 Work Organizations Typically Rely on the Weakest Schedule 242

What Did I Learn? 244 PSAC: Why Are Some Companies Yanking Forced Ranking? 247 Legal/Ethical Challenge: Fined Billions, but Still Admired and Handsomely Rewarded 249

xxiiiCONTENTS

OB IN ACTION: Applications of Mindfulness 270 SELF-ASSESSMENT 7.2: What Is My Level of Mindfulness? 271 Practicing Mindfulness 271

7.4 DEVELOPING PSYCHOLOGICAL CAPITAL AND SIGNATURE STRENGTHS 273 Hope = Willpower + “Waypower” 273 Efficacy 274 Resilience 274 Optimism 275 OB IN ACTION: Life Is Good . . . Spread the Power of

Optimism 275 How I Can Develop My PsyCap 276 SELF-ASSESSMENT 7.3: What Is My Level of PsyCap? 277 Signature Strengths 277 SELF-ASSESSMENT 7.4: What Are My Signature Strengths? 278

7.5 CREATING A CLIMATE THAT FOSTERS POSITIVE ORGANIZATIONAL BEHAVIOR 279 Organizational Values 279 Organizational Practices 280 Virtuous Leadership 281

7.6 FLOURISHING: THE DESTINATION OF POSITIVE ORGANIZATIONAL BEHAVIOR 282 OB IN ACTION: Values-Based Investing

at Parnassus Fund 282 Positive Emotions 283 OB IN ACTION: Pirch Spreads Joy 284 Engagement 285 Relationships 285 Meaningfulness 285 Achievement 286

What Did I Learn? 287 PSAC: Does Forever 21 Foster Positivity? 290 Legal/Ethical Challenge: Does GPS Tracking of Employee Actions Foster a Positive Work Environment? 292

8 GROUPS AND TEAMS

How Can Working with Others Increase Everybody’s Performance? 294

MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 294 WINNING AT WORK 296 FOR YOU: WHAT’S AHEAD IN THIS CHAPTER 296

8.1 GROUP CHARACTERISTICS 297 Formal and Informal Groups 298 Roles and Norms: The Social Building Blocks for Group and

Organizational Behavior 299 SELF-ASSESSMENT 8.1: Group and Team Role Preference

Scale 302

8.2 THE GROUP DEVELOPMENT PROCESS 304 Tuckman’s Five-Stage Model of Group Development 304 Punctuated Equilibrium 306

8.3 TEAMS AND THE POWER OF COMMON PURPOSE 307 A Team Is More Than Just a Group 307 SELF-ASSESSMENT 8.2: Is This a Mature Work Group or a

Team? 308 OB IN ACTION: Team Building Is an Important Part of Talent

Management 308 Being a Team Player Instead of a Free Rider 309 SELF-ASSESSMENT 8.3: Evaluate Your Team Member

Effectiveness 310 Types of Teams 311

OB IN ACTION: The Art of the Self-Managing Team 312

Virtual Teams 313 Team Interdependence 315

8.4 TRUST BUILDING AND REPAIR—ESSENTIAL TOOLS FOR SUCCESS 317 Three Forms of Trust 318 Building Trust 319 SELF-ASSESSMENT 8.4: How Much Do You Trust

Another? 319 Repairing Trust 320

8.5 KEYS TO TEAM EFFECTIVENESS 321 Characteristics of High-Performing Teams 321 The 3 Cs of Effective Teams 321 Collaboration and Team Rewards 323 PROBLEM-SOLVING APPLICATION: Together,

Hospitals Combat a Common Foe 324 OB IN ACTION: Exemplary Teamwork at NASA 325

What Did I Learn? 327 PSPAC: Optimizing Team Performance at Google 320 Legal/Ethical Challenge: When Would You Fire the Coach? The President? 332

PART TWO Groups 293

xxiv CONTENTS

10 MANAGING CONFLICT AND NEGOTIATIONS

How Can These Skills Give Me an Advantage? 376

MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 376 WINNING AT WORK 378 WHAT’S AHEAD IN THIS CHAPTER 378

10.1 A CONTEMPORARY VIEW OF CONFLICT 379 SELF-ASSESSMENT 10.1: Interpersonal Conflict Tendencies 379 Conflict Is Everywhere and It Matters 379 A Modern View of Conflict 380 A Conflict Continuum 380 Functional vs. Dysfunctional Conflict 380 Common Causes of Conflict 381 Escalation of Conflict 381 OB IN ACTION: First a Question, Then a Major Altercation 382 Why People Avoid Conflict 382 Desired Outcomes of Conflict Management 384

10.2 CONVENTIONAL FORMS OF CONFLICT 385 Personality Conflicts 385 How to Deal with Personality Conflicts 386 OB IN ACTION: The CEO Who Planned a “Food Fight” 386 PROBLEM-SOLVING APPLICATION: Butt Your Heads Together

and Fix the Problem 387 Intergroup Conflict 388 How to Handle Intergroup Conflict 389 SELF-ASSESSMENT 10.2: Psychological Safety Climate 391

10.3 FORMS OF CONFLICT INTENSIFIED BY TECHNOLOGY 392 Work–Family Conflict 392 SELF-ASSESSMENT 10.3: School–Non-School Conflict 393 OB IN ACTION: At United Shore Financial—Give Me Only 40 or

You’re Fired 394 Incivility—Treating Others Poorly Has Real Costs 396 SELF-ASSESSMENT 10.4: Bullying Scale—Target and

Perpetrator 399

10.4 EFFECTIVELY MANAGING CONFLICT 400 Programming Functional Conflict 400 Conflict-Handling Styles 402 SELF-ASSESSMENT 10.5: Preferred Conflict-Handling

Style 403 Third-Party Interventions: Alternative Dispute Resolution 405

10.5 NEGOTIATION 407 Two Basic Types of Negotiation 407 Emotions and Negotiations 409 OB IN ACTION: Take It from an FBI International Hostage

Negotiator 410 Ethics and Negotiations 411

What Did I Learn? 413 PSAC: What About McDonald’s Other Customers? 416 Legal/Ethical Challenge: Arbitration and a Snowball’s Chance 418

9 COMMUNICATION IN THE DIGITAL AGE

How Can I Become a More Effective Communicator? 334

MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 334 WINNING AT WORK 336 WHAT’S AHEAD IN THIS CHAPTER 336

9.1 BASIC DIMENSIONS OF THE COMMUNICATION PROCESS 337 Defining Communication 337 How the Communication Process Works 338 OB IN ACTION: The Priceline Group Works Hard to Avoid

Noise with Its Global Customers 339 Selecting the Right Medium 340

9.2 COMMUNICATION COMPETENCE 342 SELF-ASSESSMENT 9.1: Assessing Your Communication

Competence 342 Sources of Nonverbal Communication 342 Listening 344 SELF-ASSESSMENT 9.2: Assessing Your Listening Style 345 Nondefensive Communication 345 Connecting with Others via Empathy 347 OB IN ACTION: Ford Designs Products by Using Empathy 347

9.3 GENDER, GENERATIONS, AND COMMUNICATION 348 Communication Patterns between Women and Men 348 Generational Differences in Communication 349 Improving Communications between the Sexes and

Generations 350

9.4 SOCIAL MEDIA AND OB 351 Social Media and Increased Productivity 352 OB IN ACTION: Expanding Organizational Boundaries with

Crowdsourcing at GE, Lego, and YOU 354 Costs of Social Media 355 PROBLEM-SOLVING APPLICATION: A Very Expensive

Fantasy 355 Make E-mail Your Friend, Not Your Foe 356 Social Media Concerns and Remedies—What Companies and

You Can Do 357 SELF-ASSESSMENT 9.3: Assessing Social Media

Readiness 358 OB IN ACTION: Coca-Cola’s Online Social Media

Principles 360

9.5 COMMUNICATION SKILLS TO BOOST YOUR EFFECTIVENESS 363 Presenting—Do You Give Reports or Do You Tell Stories? 363 Crucial Conversations 366 Managing Up 368

What Did I Learn? 370 PSAC: What Can You Say About Your Employer on Social Media? Whatever You Want, Maybe 373 Legal/Ethical Challenge: Should Employers Monitor Employees’ Social Media Activity? 375

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11 DECISION MAKING AND CREATIVITY

How Critical Is It to Master These Skills? 420

MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 420 WINNING AT WORK 422 WHAT’S AHEAD IN THIS CHAPTER 422

11.1 RATIONAL AND NONRATIONAL MODELS OF DECISION MAKING 423 Two Ways of Thinking 423 Rational Decision Making: Managers Make Logical and Optimal

Decisions 424 OB IN ACTION: Northwestern University Helps Students Deal

with Bounded Rationality while Solving Problems 426 Nonrational Models of Decision Making: Decision Making Does

Not Follow an Orderly Process 427 SELF-ASSESSMENT 11.1: Assessing Your Intuition 430

11.2 DECISION-MAKING BIASES: RULES OF THUMB OR “HEURISTICS” 431 PROBLEM-SOLVING APPLICATION: Heuristics Partly to Blame

for BP Oil Spill 432

11.3 EVIDENCE-BASED DECISION MAKING 435 Using Evidence to Make Decisions 436 Big Data: The Next Frontier in Evidence-Based

Decision Making 437 PROBLEM-SOLVING APPLICATION: Kroger Uses Big Data

to Improve Customer Service and Profits 438

11.4 FOUR DECISION-MAKING STYLES 439 Value Orientation and Tolerance for Ambiguity 439 The Directive Style: Action-Oriented Decision Makers Who

Focus on Facts 439 The Analytical Style: Careful and Slow Decision Makers Who

Like Lots of Information 440 The Conceptual Style: Intuitive Decision Makers Who Involve

Others in Long-Term Thinking 441

The Behavioral Style: Highly People-Oriented Decision Makers 441

Which Style Are You? 441 SELF-ASSESSMENT 11.2: What Is My Decision-Making

Style? 441

11.5 A ROAD MAP TO ETHICAL DECISION MAKING 442

11.6 GROUP DECISION MAKING 444 Advantages and Disadvantages of Group Decision

Making 445 Groupthink 445 SELF-ASSESSMENT 11.3: Assessing Participation in Group

Decision Making 447 Practical Contingency Recommendations about Group Decision

Making 447 Reaching Consensus: The Goal of Group Problem-Solving

Techniques 447 Practical Problem-Solving Techniques 447 PROBLEM-SOLVING APPLICATION: Rosemont Center

Addresses Employee-Related Issues 449

11.7 CREATIVITY 450 A Model of Creativity 450 SELF-ASSESSMENT 11.4: Assessing Climate for

Creativity 452 Practical Recommendations for Increasing Creativity 453

What Did I Learn? 454 PSAC: Don’t Drink the Water in Flint, Michigan 458 Legal/Ethical Challenge: Should Apple Comply with the US Government’s Requests to Unlock iPhones? 460

12 POWER, INFLUENCE, AND POLITICS

How Can I Apply Power, Influence, and Politics to Increase My Effectiveness? 462

MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 462 WINNING AT WORK 464 WHAT’S AHEAD IN THIS CHAPTER 464

12.1 POWER AND ITS BASIC FORMS 465 Five Bases of Power 465 OB IN ACTION: Former Government Officials Wielding

Influence at Consulting Group 467 SELF-ASSESSMENT 12.1: What Kind of Power Do I

Prefer? 468 Position vs. Personal Power 468 Power, but for What Purpose? 469

12.2 POWER SHARING AND EMPOWERMENT 472 Structural Empowerment 472 Psychological Empowerment 474 How to Empower Individuals, Teams, and Organizations 475 PROBLEM-SOLVING APPLICATION: Empowering a Team of

Your Peers 476

12.3 EFFECTIVELY INFLUENCING OTHERS 477 Common Influence Tactics 477 SELF-ASSESSMENT 12.2: Which Influence Tactics Do I

Use? 478 Match Tactics to Influence Outcomes 478 Influence in Virtual Teams 479

xxvi CONTENTS

13 LEADERSHIP EFFECTIVENESS

What Does It Take to Be Effective? 502

MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 502 WINNING AT WORK 504 WHAT’S AHEAD IN THIS CHAPTER 504

13.1 MAKING SENSE OF LEADERSHIP THEORIES 505 An Integrated Model of Leadership 506 What Is the Difference between Leading and Managing? 507 SELF-ASSESSMENT 13.1: Assessing Your Readiness to

Assume a Leadership Role? 507

13.2 TRAIT THEORIES: DO LEADERS POSSESS UNIQUE TRAITS AND PERSONAL CHARACTERISTICS? 508 What Core Traits Do Leaders Possess? 508 What Role Does Emotional Intelligence Play in Leadership

Effectiveness? 509 Do Women and Men Display the Same Leadership

Traits? 510 How Important Are Knowledge and Skills? 510 Do Perceptions Matter? 510 What Are the Take-Aways from Trait Theory? 511 OB IN ACTION: MasterCard and InterContinental Hotels Group

(IHG) Develop Employees’ “Global Mind-set” 512

13.3 BEHAVIORAL THEORIES: WHICH LEADER BEHAVIORS DRIVE EFFECTIVENESS? 513 Task-Oriented Leader Behavior 513 OB IN ACTION: Nick Saban Uses Task-Oriented Leadership to

Achieve National Championships in Football 514 Relationship-Oriented Leader Behavior 515 SELF-ASSESSMENT 13.2: Assessing Your Task- and

Relationship-Oriented Leadership Behavior 515 SELF-ASSESSMENT 13.3: Assessing Your Servant

Orientation 517 Passive Leadership 518

OB IN ACTION: Passive Leadership at Petrobas 519 What Are the Take-Aways from Behavioral Theory? 519

13.4 CONTINGENCY THEORIES: DOES THE EFFECTIVENESS OF LEADERSHIP DEPEND ON THE SITUATION? 520 Fiedler’s Contingency Model 520 PROBLEM-SOLVING APPLICATION: Bill Marriott Selects Arne

Sorenson to Be CEO over His Son 522 House’s Path-Goal Theory 523 Applying Contingency Theories 526

13.5 TRANSFORMATIONAL LEADERSHIP: HOW DO LEADERS TRANSFORM EMPLOYEES’ MOTIVES? 527 A Model of Transformational Leadership 527 How Does Transformational Leadership Work? 529 SELF-ASSESSMENT 13.4: Assessing Your Boss’s

Transformational Leadership? 530

13.6 ADDITIONAL PERSPECTIVES ON LEADERSHIP 531 The Leader-Member Exchange (LMX) Model

of Leadership 531 SELF-ASSESSMENT 13.5: Assessing Your Leader-Member

Exchange 533 The Power of Humility 534 The Role of Followers in the Leadership Process 534

What Did I Learn? 536 PSAC: The University of Virginia President Leads through Multiple Crises 540 Legal/Ethical Challenge: Martin Shkreli, former CEO of Turing Pharmaceuticals, Exorbitantly Raises the Price of a Much-Needed Drug 542

Six Principles of Persuasion 480 Apply Your Knowledge 481

12.4 POLITICAL TACTICS AND HOW TO USE THEM 482 Organizational Politics—The Good and the Bad 482 SELF-ASSESSMENT 12.3: How Political Am I? 482 Major Causes of Political Behavior 483 Frequently Used Political Tactics 484 Blame and Politics 485 Three Levels of Political Action 486 Using Politics to Your Advantage 487

12.5 IMPRESSION MANAGEMENT 489 What Is Impression Management? 489 Good Impressions 489

OB IN ACTION: Impression Management, Venture Capital Style 491

SELF-ASSESSMENT 12.4: Your Impression Management—How and Who 492

Impression Management and Job Interviews 492 How to Create Bad Impressions 493 Ethics and Impression Management  494 Apologies 494

What Did I Learn? 496 PSAC: Comcast’s Influence Went Only So Far 499 Legal/Ethical Challenge: Sharapova, You’re Out. But Not Woods, Not Vick, Not Armstrong, Not Bryant, Not . . . 500

xxviiCONTENTS

14 ORGANIZATIONAL CULTURE, SOCIALIZATION, AND MENTORING

How Can I Use These Concepts to Fit, Develop, and Perform? 544

MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 544 WINNING AT WORK 546 WHAT’S AHEAD IN THIS CHAPTER 546

14.1 THE FOUNDATION OF ORGANIZATIONAL CULTURE: UNDERSTANDING ITS DRIVERS AND FUNCTIONS 547 Defining Culture and Exploring Its Impact 547 The Three Levels of Organizational Culture 548 OB IN ACTION: Unilever Promotes a Sustainability

Culture 550 The Four Functions of Organizational Culture 551

14.2 THE IMPACT OF ORGANIZATIONAL CULTURE TYPES ON OUTCOMES 554 Identifying Culture Types with the Competing Values

Framework 554 PROBLEM-SOLVING APPLICATION: Dabbawalas Rely on a

Hierarchical Culture to Efficiently Deliver Food 558 OB IN ACTION: Activision Blizzard Integrates Clan and

Adhocracy Cultures 559 SELF-ASSESSMENT 14.1: What Is the Organizational Culture

at My Current Employer? 561 Outcomes Associated with Organizational Culture 561 Subcultures Matter 562

14.3 MECHANISMS OR LEVERS FOR CULTURE CHANGE 563 12 Mechanisms or Levers for Creating Culture Change 564

OB IN ACTION: Salo LLC Uses Rites and Rituals to Embed a Clan and Market Culture 568

SELF-ASSESSMENT 14.2: What Type of Organizational Culture Do I Prefer? 570

14.4 EMBEDDING ORGANIZATIONAL CULTURE THROUGH THE SOCIALIZATION PROCESS 571 A Three-Phase Model of Organizational Socialization 571 OB IN ACTION: Companies Use Different Approaches to

Onboard Employees 573 SELF-ASSESSMENT 14.3: Have You Been Adequately

Socialized? 575 Practical Application of Socialization Research 575

14.5 EMBEDDING ORGANIZATIONAL CULTURE THROUGH MENTORING 578 Functions of Mentoring 578 Human and Social Capital Enhance the Benefits of

Mentoring 579 Personal Implications 581 SELF-ASSESSMENT 14.4: Assessing My Level of

Mentoring 581

What Did I Learn? 582 PSAC: Zenefits Experiences the Pain of Growth 585 Legal/Ethical Challenge: Should the Citadel Change Its Socialization Practices? 587

PART THREE Organizational Processes 543

15 ORGANIZATIONAL DESIGN, EFFECTIVENESS, AND INNOVATION

How Can Understanding These Key Processes and Outcomes Help Me Succeed? 588

MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 588 WINNING AT WORK 590 WHAT’S AHEAD IN THIS CHAPTER 590

15.1 THE FOUNDATION OF AN ORGANIZATION 591 What Is an Organization? 591 Organization Charts 592 An Open-System Perspective of Organizations 593 Learning Organizations 594 SELF-ASSESSMENT 15.1: Are You Working for a Learning

Organization? 597

15.2 ORGANIZATIONAL DESIGN 598 Three Categories 599 Seven Types of Organizational Structures 600 OB IN ACTION: W.L. Gore & Associates Operates with a

Horizontal Design 601 SELF-ASSESSMENT 15.2: What Is Your Preference for

Telecommuting? 602 PROBLEM-SOLVING APPLICATION: Freelancers Use the

Internet to Obtain Work 603

xxviii CONTENTS

16 MANAGING CHANGE AND STRESS

How Can You Apply OB and Show What You’ve Learned? 632

MAJOR TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 632 WINNING AT WORK 634 WHAT’S AHEAD IN THIS CHAPTER 634

16.1 FORCES FOR CHANGE 635 SELF-ASSESSMENT 16.1: Assessing Your Attitudes toward

Change at Work 635 External Forces 635 Internal Forces 639 OB IN ACTION: Conflicts and Solutions at iPhone

Manufacturers 640

16.2 TYPES AND MODELS OF CHANGE 642 Three General Types of Change 642 OB IN ACTION: Cisco Thrives on (Radical) Innovation 643 Common Elements of Change 644 Lewin’s Change Model 644 OB IN ACTION: Unfreezing at Facebook 645 A Systems Model of Change 646 SELF-ASSESSMENT 16.2: What Is Your Readiness for

Change? 649 Kotter’s Eight-Stage Organizational Change Process 650 Creating Change through Organization Development (OD) 650

16.3 UNDERSTANDING RESISTANCE TO CHANGE 652 A Dynamic View of Resistance 652 Causes of Resistance to Change 653 OB IN ACTION: Should a New Leader Clean House? 655

16.4 THE GOOD AND THE BAD OF STRESS 656 Stress—Good and Bad 656 A Model of Occupational Stress 656 OB IN ACTION: Terminal Stress on Wall Street 658 OB IN ACTION: Barrie D’Rozario DiLorenzo (BD’D) Takes

Advertising, Marketing, and Employee Stress Very Seriously! 661

16.5 EFFECTIVE CHANGE AND STRESS MANAGEMENT 662 Applying the Systems Model of Change—Strategic Planning and

Diagnosis 662 PROBLEM-SOLVING APPLICATION: Emergency in the

Emergency Department 662 How to Overcome Resistance to Change 663 How to Manage Stress 665 Pulling It All Together—Change Management Tips for

Managers 667 Parting Words for Change and OB 668

What Did I Learn? 669 PSAC: Best Buy ... The Best House on a Bad Block 672 Legal/Ethical Challenge: Can Employers Ethically Force You to Change and Be Healthy? 673

ENDNOTES CN1 GLOSSARY/SUBJECT INDEX I-1 NAMES INDEX I-21 COMPANY INDEX I-24

15.3 CONTINGENCY DESIGN AND INTERNAL ALIGNMENT 607 Contingency Factors 607 PROBLEM-SOLVING APPLICATION: Whole Foods

Is Moving from an Organic to a Mechanistic Structure 608

Internal Alignment 609 What Does This Mean to Me? 610

15.4 ASSESSING ORGANIZATIONAL EFFECTIVENESS 611 The Balanced Scorecard: A Dashboard-Based

Approach to Measuring Organizational Effectiveness 611

SELF-ASSESSMENT 15.3: Assessing the Learning and Growth Perspective of the Balanced Scorecard 614

Strategy Mapping: Visual Representation of the Path to Organizational Effectiveness 614

15.5 ORGANIZATIONAL INNOVATION 616 Approaches toward Innovation 616 An Innovation System: The Supporting Forces for

Innovation 618 PROLEM-SOLVING APPLICATION: Extended Stay America

Tries to Increase Innovation 620 SELF-ASSESSMENT 15.4: How Innovative Is the

Organizational Culture? 620 OB IN ACTION: Design Thinking Your Way to Innovative

Solutions 621 Office Design 623

What Did I Learn? 625 PSAC: Zappos CEO Asks Employees to Commit to Teal, or Leave 628 Legal/Ethical Challenge: Does Tax-Exempt Status for Universities Make Them Good Organizational Citizens? 630

Individual Behavior

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