week 7 mgt

264 PART 1 Individual Behavior

This discussion reveals why managers should focus on the good things employees are doing, and why all of us should focus on the positive qualities of coworkers, classmates, partners, friends, and spouses. Yes, you might be saying, but how?

Strategies to Increase Your Positivity The following activities can help you in- crease your positive experiences and decrease your negative ones.44

Create high-quality connections. Any social interaction, whether with family, co- workers, classmates, or the person ahead of you in line, is a chance to create a high- quality connection. Such connections are energizing and enhance your positivity. To transform ordinary interactions into high-quality connections, try the following tips:

1. Make someone the only person in the room. Engage the other person by being present, attentive, and affirming. Act as if he or she is the only person in the room.

2. Support. Do what you can to encourage the person and help him or her achieve a goal or attain success.

3. Give trust. Believe you can depend on this person to meet your expectations, and let it show.

4. Goof off. Play! Have no goals or intentions other than to goof off with others.

Cultivate kindness. Set a goal of performing five new acts of kindness in a single day. Aim for actions that really make a difference and come at no cost to you. Assess what those around you might need most and make a plan, but execute your plan so your acts of kindness all occur on the same day to further enhance the impact.

Develop distractions. One of the best ways to break from negativity is to distract yourself. Brainstorm and think of ways—old and new—to distract yourself from negative thoughts. Be sure to try to think of things you can do at school, at home, or at work. Make two lists: healthy distractions and unhealthy distractions. Healthy distractions can be go- ing for a run, taking a bike ride, or playing your favorite sport. Unhealthy distractions might be drinking, eating junk food, watching TV, or playing video games. Be careful of these, and for each unhealthy one, challenge yourself to add another healthy distraction to your list. Negativity can creep in anywhere and at any time, so keep your lists of distrac- tions handy and practical.

Playing video games is a fun and effective way to create high quality connections. These two seem to be enjoying the friendly competition and each other’s company. Fun and positivity at home transfers to positive emotions and higher performance at work. © James Woodson/Getty Images RF

265Positive Organizational Behavior CHAPTER 7

Dispute negative self-talk and thoughts.  Write on 3×5-inch cards your most frequent negative thoughts or emotions about yourself, a relationship, or a situation at school, work, or home. Then, in a private place where nobody can hear you, read the cards aloud one at a time. After reading each, immediately dispute or counter it. Don’t stop to think, but beat it down and disprove it with something positive about yourself, the situation, or the facts. Be sure to do this with enthusiasm, to build your conviction. Practice. Your goal is to learn to dispute negative thoughts as quickly as they enter your mind.

Platitudes = Fake = Bad Outcomes Remember that simply uttering positive words or forcing a smile isn’t enough. Humans are excellent detectors of insincerity.45 If your positivity is not heartfelt and genuine, you will not reap any of the benefits of im- proved performance, relationships, and health we’ve discussed. Insincere attempts at positivity may even do harm, because your lack of authenticity can erode others’ trust in you and reduce your influence and credibility with them. 

My Level of Positivity To make this discussion come to life for you, find out the relative frequency of your positive to negative emotions. This knowledge can help you understand many things about yourself, such as how likely you are to reap the benefits of positive emotions and positive OB. Remember that emotions are short-lived, and that any measure of your emotions captures your feelings about a specific event, per- son, or dimension of your life at only a particular point in time. We encourage you to take Self-Assessment 7.1 for the past day of your life, which is intended to capture your positivity more generally. Then, do it focusing on school as your target. If you’re working, calculate your ratio of positive to negative emotions for work and compare it to your ratio for life more generally. This will give you knowledge of your positivity in various arenas of your life and help you better understand this important personal resource.

Learn Your Positivity Ratio Please be prepared to answer these questions if your instructor has assigned Self-Assessment 7.1 in Connect.

1. What is your reaction to the results?

2. Considering the individual differences (IDs) we discussed in Chapter 3, which ones do you think are contributing to your ratio?

3. Do others see you as more or less positive than your ratio suggests? Why?

4. If you conduct this self-assessment for two different dimensions of your life (such as school and work), to what do you attribute the differences in the ratios?

5. Describe three things you can do to improve your positivity ratio for school.

SOURCE: Positivity: Groundbreaking Research Reveals How to Embrace the Hidden Strength of Positive Emotions, Overcome Negativity, and Thrive, by Barbara Fredrickson, Copyright © 2009 by Barbara Fredrickson, Ph.D. Used by permission of Crown Books, an imprint of the Crown Publishing Group, a division of Random House LLC. All rights reserved.

SELF-ASSESSMENT 7.1

266 PART 1 Individual Behavior

M A J O R Q U E S T I O N

How can mindfulness contribute to my effectiveness?

T H E B I G G E R P I C T U R E

You may be more aware of mindfulness by its absence, that is, when you realize you’ve done

something foolish or thoughtless. In this section you will find that you can improve your focus

and attention through practice. You’ll learn what inhibits mindfulness and two effective tech-

niques you can use to increase it.

7.3 FOSTERING MINDFULNESS

Figure 7.2 showed that mindfulness is another person factor that creates positivity in work environments. Although the concept of mindfulness has been studied for over 30 years, it is new to the field of organizational behavior.46 Yet a recent survey by Fidelity Investments and the National Business Group on Health estimated that 22 percent of all US employers already offer some form of mindfulness training.47 You will learn more about this later in the section.

Mindfulness can have a positive impact on many of the outcomes in the Organiz- ing Framework. It can enhance your decision making and your ability to use the managerial skills associated with performance management, like giving feedback, coaching, and recog- nizing others. This section reviews the difference between mindfulness and mindlessness, the inhibitors of mindfulness, its benefits, and techniques you can use to practice it.

Mindlessness vs. Mindfulness Mindlessness  “is a state of reduced attention. It is expressed in behavior that is rigid,” or thoughtless.48 Life’s dynamics put all of us into occasional states of mindless- ness. Our brains simply can’t keep up with all the stimuli we receive, according to noted psychiatrist Edward Hallowell. “Never in history has the human brain been asked to track so many data points,” Hallowell says. He believes overloading of our brains is a primary cause of poor performance at school and work: “We’re simply expecting more of our brains than they have the energy to handle.”49

Mindlessness characterizes the tasks we do automatically, like driving to and from school or work. We get in the car, take off, and suddenly arrive at our destination wonder- ing how we got there. Mindlessness can also be purposeful, as when we refuse to “ac- knowledge or attend to a thought, emotion, motive, or object of perception.”50 An example is failing to focus on a new person’s name when being introduced, so we forget it 30 sec- onds later. Our lack of attention simply sends the name into our pile of forgotten informa- tion. Not surprisingly, mindlessness is associated with poor mental and physical health, less satisfying relationships, and lower task performance.51 Mindfulness is completely different.

Mindfulness  is “the awareness that emerges through paying attention on pur- pose, in the present moment, and nonjudgmentally to the unfolding of experience moment by moment.”52 We can be mindful of both our inner world, such as our feelings and thoughts, and our outer world, including the feelings, thoughts, and interactions of others. Mindfulness requires effort because our brains work in ways that inhibit staying focused. For example, we all have a “thinking mind” that likes to judge everything we see and hear. This creates a kind of mental chatter that detracts from the inner quiet we need to stay focused on and aware of what is going on around us. Further, it’s simply easier to

267Positive Organizational Behavior CHAPTER 7

let the mind wander, on an automatic-pilot setting of unawareness, than to concentrate on the present moment. Unless we make an effort, we drift toward mindlessness.53

Mindfulness improves our interpersonal communications because it keeps us focused on others and what they are saying. Here is what Doug Parker, chair and CEO of American Airlines, had to say about a typical interaction with Herb Kelleher, former CEO of South- west Airlines: “He is completely engaged and never looks over your shoulder to see who else is in the room. It’s not out of principle; it’s just who he is.” Parker told a Fortune re- porter that he had changed his own approach to communicating with employees based on observing Kelleher.54 

Mindfulness requires attentional balance, or the ability to maintain sustained, non- emotional attention in a specific situation. Does wearing headphones at work or study help or hinder attentional balance? The OB in Action box below discusses some research conclusions.

More companies now allow employees to use earbuds and noise-canceling head- phones at work. Some people listen to music, while others just want to reduce the general level of noise. Employees believe the practice helps block distractions like loud coworkers, ringing phones, and machine-related noises. Not all compa- nies agree, however, and some have banned headphone use.

Does the Use of Headphones Help Achieve Mindfulness?

OB in Action

268 PART 1 Individual Behavior

Lyrics Distract During Work and Study. Research with students provided little support for the value of listening to music while studying. A study of Taiwanese students revealed that concentration levels went down when participants studied while listening to music with lyrics. Adult reading-test scores also were lower when people listened to hip-hop music while reading.

Neuroscientists believe that “listening to music with lyrics while trying to read or write can distract employees by overtaxing verbal-processing regions of the brain.” Dr. Robert Desimone, director of Brain Research at MIT, concluded, “The prefrontal cortex, the brain’s control center, must work harder to force itself not to process any strong verbal stimuli, such as catchy lyrics, that compete with the work you’re attempting.”55

Individual Differences Exist. Research shows that people pay more attention to music they like and thus are more distracted by it. Familiar music without lyrics was found to serve as a sound-blocker. Some individuals benefit from noise- canceling headphones because they reduce perceptions of the high-frequency sound and general activity in an office environment.

At the same time, the use of earbuds and headphones can cause conflict and resentment at work. It becomes hard for colleagues to get each other’s attention, for instance, and some believe the use of such equipment violates norms of office etiquette.

Do Headphones Help? We don’t recommend headphones when you are reading or studying. Otherwise, it seems that individual differences and office norms should rule.56

YOUR THOUGHTS?

1. If you are going to listen to music while working, what artists or types of music are most suitable for you?

2. Assume you’re on a team project with other students. Would it bother you if some of them wore headphones and listened to music while you are working together? Explain.

3. Assume you’ve been promoted to supervise a group of employees at work. Would it bother you if some workers in the group wore headphones and lis- tened to music? Explain.

Let’s consider the inhibitors of attentional balance.

Inhibitors of Mindfulness The two key inhibitors of mindfulness are attentional deficit and attentional hyperactiv- ity.57 You’ll need to understand these so you can avoid them.

Attentional Deficit Attentional deficit  is the inability to focus vividly on an object. This deficit can easily occur in a classroom when students feel bored, listless, or uninterested. Multitasking on digital devices is another key contributor. For exam- ple, research suggests that electronic gadgets are in use in 10 percent of all pedestrian injuries. Other research shows that adults’ use of smartphones may be the culprit be- hind a 10 percent increase in unintentional childhood injuries.58  Kids seem to take risky actions like throwing objects or going down a slide headfirst when caregivers are not paying attention.

269Positive Organizational Behavior CHAPTER 7

Attentional Hyperactivity Attentional hyperactivity  happens when our minds are racing or wandering, resulting in compulsive daydreaming or fantasizing. This is also called rumination. Rumination is “the uncontrollable repetitive dwelling on causes, meanings, and implications of negative feelings or events in the past.” Worry, which focuses on the future, such as what will happen if I lose my job, also contributes to rumination.59

We all do a lot of mind wandering.  Best-selling author and psychology professor Daniel Gilbert estimates that our minds wander for about 50 percent of the workday. Mind wondering reduces performance, particularly for complex tasks.60 Gilbert’s re- search reveals that most mind wandering is centered on personal rather than business concerns.61 When your mind wonders, don’t be overly attentive to it and don’t be mad at yourself for doing it. Just give soft recognition to the fact that your mind is wandering and return your focus to the present moment.

Benefits of Mindfulness There are four broad benefits of mindfulness.

1. Increased physical, mental, and interpersonal effectiveness. Effectiveness in- creases because, when they are mindful, people are more aware of physical sensa- tions, personal feelings, personal emotions, and the feelings and emotions of others. Mindfulness also promotes better sleep and helps reduce chronic pain.62

2. More effective communications and decision making. Mindfulness fosters more effective listening, greater use of empathy, and more attention to nonverbal cues dur- ing conversations.63

3. More balanced emotions. Paying attention to internal emotions and the emotions of others leads us to be more emotionally balanced and less reactive. This in turn helps reduce conflict with others.64

4. Performance and satisfaction. Mindfulness can increase productivity and job satisfaction.65

This sign in Stockholm, Sweden, illustrates the dangers of attentional deficits associated with texting and walking. It’s easy to bump into people or trip over a curb when walking and texting. Has this ever happened to you? © Johan Jeppsson/Bloomberg/Getty Images

270 PART 1 Individual Behavior

As illustrated in the OB in Action box, organizations have discovered the benefits of mindfulness for a variety of members, including Google employees, National Football League players, and grade school children.

Would you like to improve your overall well-being? How about the effectiveness of your social interactions and relationships? If yes, you will gain valuable insight about your level of mindfulness by taking Self-Assessment 7.2. You can use your scores to de- velop an improvement plan in pursuit of mindfulness’s positive outcomes.

• Chade-Meng Tan heads Google’s mindfulness training program. His goal is to “enlighten minds, open hearts, and create world peace.” He believes that mindfulness “opens the doorway to loving kindness, which is at the heart of business success.” Google has trained more than 2,000 employees in its Search Inside Yourself mindfulness course. Ninety-one percent of participants reported more clarity of mind.66

• General Mills employees, including 400 executives, have been practicing meditation and yoga for more than seven years. Re- sults include the following: 80 percent of participants report bet- ter decision making, 89 percent believe they became better listeners, 83 percent took time to focus on personal productivity, and 82 percent eliminated nonessential tasks.67

• Aetna employees with high stress levels were spending $2,500 more per year for health care than others. Then 200 of them participated in a 12-week training course that in- cluded meditation and yoga, resulting in demonstrated reduced stress and medical costs. Six thousand employees have subsequently taken the free class.68

• Pete Carroll, head coach of the Seattle Seahawks, hired a sports psychologist to teach the players “tactical breathing, vi- sualization, and mental-imaging techniques to cultivate full presence and conviction in the moment.”69  Carroll believes these techniques help players perform at their maximum potential.

• Goldie Hawn’s foundation created the MindUp program to teach mindfulness to children. A set of 15 lessons based on neuroscience has been taught to several hundred thou- sand children. Demonstrated results include increased optimism, happiness, empathy, compassion, and academic performance as well as reduced bullying and aggression.70 

YOUR THOUGHTS?

1. Are you surprised by the diverse applications of mindfulness? Explain. 2. Which of these applications do you find most interesting? Why?

Applications of Mindfulness OB in Action

271Positive Organizational Behavior CHAPTER 7

Practicing Mindfulness The goal of practicing mindfulness is to help you become more calm and collected in all circumstances. The 2009 book The Leader’s Way explains: “When the mind is disturbed by anger, jealousy, hate, impatience, fear, lack of self-confidence, or negative emotions about things that happened in the past, it is wasting valuable time that instead should be used for constructive thinking.”71 Practicing mindfulness helps you focus your mind on productive activities while constraining counterproductive thinking and mind wandering.

The good news is that you can learn mindfulness by using a variety of simple medita- tive techniques on a regular basis. Although there are many good books and articles you can consult for details regarding these techniques,72 we review two approaches that are easily learned: a breathing meditation and a walking meditation. Research shows that practicing short meditative techniques like these reduces stress and negative emotions and increases emotional regulation, task performance, and memory.73 You will find both physiological and cognitive benefits from practicing mindfulness. Give it a try!

Breathing Meditation Breathing meditations are easy and can be done almost any- where. Focusing on breath reminds us of the here and now because it brings us back to a fundamental and vital function of life. This technique requires nothing more than tuning into the physical sensations associated with breathing in and out. Two experts recom- mend the following simple approach for getting started:

• Place your hand on your stomach a couple of inches beneath the upside-down V at the center of your rib cage. Look down, breathe normally, and watch your hand. You’ll probably see it move only a little bit, and more or less up and down. Your belly should expand when you inhale and contract on the exhale.

• Leaving your hand in place, now breathe in such a way that your hand moves out and back, perpendicular to your chest. Try to breathe into your hand with real oomph, so that it travels back and forth half an inch or more with each breadth.74

Start by trying these two steps for about 10 to 20 breaths. Once you are comfortable with this form of diaphragm breathing, you can take your practice to the next level with these additional instructions:

• Sit comfortably in a chair, feet firmly on the ground and your back relatively erect. Feel like you are a “proud mountain” of stability. Close your eyes and take a deep inhale that fills your belly and lungs. Now exhale, noticing how your belly con- tracts. Do this twice.

• Add counting to four or five as you both inhale and exhale, to ensure that you are taking deep breaths. Try doing this for five minutes twice a day. You can extend the length of time you practice breathing meditations as you become more com- fortable with the technique.

What Is My Level of Mindfulness? Please be prepared to answer these questions if your instructor has assigned Self-Assessment 7.2 in Connect.

1. What questions identified your greatest inhibitors? (Select the three items with the lowest scores.)

2. What is the cause of these inhibitors?

3. Examine the techniques listed in the next section and decide which one might be best suited for your needs. Start using the technique on a daily basis.

SELF-ASSESSMENT 7.2

272 PART 1 Individual Behavior

Your mind is likely to wander during these exercises. You also will notice sounds around you. That’s normal. Acknowl- edge the thoughts and sounds and return your focus to your breath. Don’t try to chase the thoughts away or give the sounds much attention. Just recognize them and let them pass. The thoughts will move away like a white cloud being blown by the wind in a blue sky.

Walking Meditation This is one of your authors’ favorite forms of meditation because it can be done any time you are walking, and no one will know you are doing it. Start this tech- nique by forming an intention. An intention  is an end point or desired goal you want to achieve. It sends a signal to the mind that guides its attentiveness and awareness during the meditative practice.75 A sample intention is, “I will focus on the act of walking while ignoring other sounds and thoughts.” 

Begin walking and keep your intention in mind. Concen- trate on placing one foot after the other. Feel the rhythmic nature of your steps. Focus on how it feels to lift and place your feet on the surface. Train your mind to be aware of your foot- steps. Notice the speed at which you walk and the pressure be- ing felt by your feet. Consider changing the length of your stride and notice how it feels. If your mind starts to wander or you begin thinking about something you have to do, just recognize the thought and then drop it. Return your attention and aware- ness to your intention, which is the act of walking. You will be amazed at what you can observe.76 Try this for five minutes.

A variation on this technique is to focus your intention on sound or smell. For example, “I will focus on all sounds during my walk,” and “I will focus on all smells during my walk.” If you use an intention aimed at sound, begin walking and concentrate on what you hear. Listen for all types of sounds like footsteps, birdsong, mechanical objects operating, wind, tree branches rustling, voices, clanging of objects, airplanes overhead, and so on. The key is to allow your mind to focus on anything that can be heard. Again, recognize stray or wandering thoughts, and then let them passively go away by returning to your intention. Try this for five to 10 minutes.

Practice Makes Perfect Mindfulness can be learned via practice, and though it takes time and commitment, the benefits are substantial. The techniques above can get you started, and helpful apps can also guide you through meditative experiences.77 In ad- dition, your local gym might offer classes. For example, 24 Hour Fitness is exploring the use of special meditative pods that use sound and light to help people meditate.78

Walking in nature can be very meditative and has been found to improve our mood and general outlook. If you want to make a walk like this meditative, take breaks now and then to focus on what you are seeing, hearing, or smelling. © Darryl Leniuk/Blend Images RF

TAKE-AWAY APPLICATION

Practicing Mindfulness

• Begin by thinking of a time when you were not paying attention in class.

1. What do you think was the cause of your lack of mindfulness? Was it atten- tional deficit or attentional hyperactivity?

2. What can you do in class to stay focused on the moment?

• Think of a time when you were talking with someone and you completely missed part of what he or she said because your mind was wandering.

3. How can you remain mindful in one-on-one conversations?

273Positive Organizational Behavior CHAPTER 7

M A J O R Q U E S T I O N

How can my inner HERO and signature strengths benefit me at work and in my career?

T H E B I G G E R P I C T U R E

Positive psychological capital is a relatively new concept in OB and is part of the positive OB

movement. It is a key person input in the Organizing Framework. Often you’ll find it explained

in terms of its components: hope, efficacy, resiliency, and optimism (HERO). You’re about to

learn how to develop and benefit from your inner HERO or psychological capital. We also ex-

plore signature strengths, in keeping with a contemporary movement that focuses on utiliz-

ing individuals’ positive attributes instead of attempting to overcome weaknesses.

7.4 DEVELOPING PSYCHOLOGICAL CAPITAL AND SIGNATURE STRENGTHS

In this section you’ll learn how both psychological capital and signature strengths con- tribute to positivity from person factors, as shown in Figure 7.2. Individuals with high levels of positive psychological capital (PsyCap)  possess considerable hope, effi- cacy, resilience, and optimism (HERO). These traits are characterized by the following:

H Hope. Persevering toward goals and, when necessary, redirecting paths in or- der to succeed.

E Efficacy. Having the confidence to take on challenging tasks and put in the effort necessary to succeed.

R Resilience. When beset by problems and adversity, sustaining and bouncing back and even beyond to attain success.

O Optimism. Making a positive attribution about succeeding now and in the future.79

Fortunately, you can develop your PsyCap. As we discussed in Chapter 3, individual traits that are relatively flexible, such as emotional intelligence, present opportunities for you and other managers to harness, develop, and utilize your strengths. Not only is your PsyCap flexible; it also has been shown to improve many outcomes in the Organiz- ing Framework, such as by increasing job satisfaction, organizational commitment, and well-being and decreasing intentions to quit, job stress, anxiety, and counterproductive work behaviors.80 This section provides the information you need to develop your PsyCap and that of others by focusing on the HERO traits.

Hope = Willpower + Waypower You’re probably thinking, “Of course I know what hope is; what else is there to know?” You also likely see yourself as more hopeful than the average person. If this is your view, you might be surprised to learn that hope actually has two components. Knowing about them can help you understand why hope works, when it doesn’t, and how to build it.

The two components of hope are willpower and waypower. This means to have hope  you need to have a goal and the determination to achieve it—willpower—and you also need to see one or more paths to achieve your goal, even when faced with

274 PART 1 Individual Behavior

adversity—waypower.81 Hope therefore requires both a goal and a means for achieving that goal.

Ben Horowitz, the renowned technology venture cap- italist, puts a high premium on the willpower of entrepre- neurs. Willpower, along with genius, are in his mind the two most crucial characteristics of successful entrepre- neurs. “Building a company is hard and lonely. It demands relentless focus. And no matter how well you do, you must be ready to be pummeled again and again.”82 It takes will- power to persist. Horowitz himself demonstrated enor- mous willpower when Loudcloud, an earlier venture with Marc Andreessen, nearly failed half a dozen times before ultimately being revived, strengthened, and sold to HP for $1.6 billion. Horowitz used “force of personality and will- power to make a business out of it,” said Herb Allen III, the CEO of Allen & Co.83

In a practical sense, hope supports adaptability and change. A series of studies showed that hope led to increased adaptability for police officers and insurance sales agents, and in the case of the agents, it also led to increased sales commissions.84 You can build hope in yourself and others via effective goal setting (Chapter 6).85 The problem- solving approach also can help, because it can assist you in identifying potential obsta- cles, sources of support, and feasible alternate paths by which to reach your goal.

Ben Horowitz is one of the top tech investors. He believes that willpower and the ability to persist are critical to entrepreneurs’ success. © Patrick T. Fallon/Bloomberg/Getty Images

TAKE-AWAY APPLICATION

Increasing My Level of Hope

Complete the following to apply your new knowledge regarding hope. These steps should make you more hopeful of having a positive influence.

1. Think of a situation at school, work, or home that you’d like to positively influence.

2. Now describe a specific goal you’d like to achieve.

3. Formulate a plan of action to achieve this goal.

4. To increase your level of hope for achieving your goal, think of a plan B or alternative to your first plan. 

Efficacy We discussed efficacy in Chapter 3; remember efficacy also is a component of your core self-evaluations (CSEs) and represents your confidence in your ability to achieve. Thus it influences the way you perceive the world around you and your ability to deal with chal- lenges and opportunities. Figure 3.4 provides a guide for improving your self-efficacy. Applying your knowledge of self-efficacy will help you realize its important role in your positive psychological capital—greater efficacy makes you more confident, more posi- tive, and more effective.

Resilience If you’re resilient  you have the capacity to consistently bounce back from adversity and to sustain yourself when confronted with challenges. Resilience helps you when things go your way and when they don’t; it is your built-in shield and recovery character- istic. Fred Luthans, the father of psychological capital, and his colleagues stated that re- silience “is arguably the most important positive resource to navigating a turbulent and stressful workplace.”86 What gives resilience its power? Resilient people are open to new experiences, flexible to changing demands, and emotionally stable when confronted with

275Positive Organizational Behavior CHAPTER 7

adversity.87 It is therefore no wonder that resilience is a component of psychological cap- ital and positive OB. Resilience can be improved with support such as coaching or help from others during trying times or experiences. The work climate, discussed in the next section of this chapter, can make employees feel safe enough to take risks and to make mistakes, thus enhancing their resilience.88 

Optimism Optimists are both realistic and flexible. Think about it. If we aren’t realistic, then we are setting ourselves up to fail. And if we fail too often, then even the most optimistic of us lose our motivation and inspiration. 

Similarly, true optimists are flexible. This means they are willing to revise their views as situations change. (Recall the contingency approach to management discussed in Chapter 1.) To clarify, optimists don’t see everything as positive. If they did they would be unrealistic or delusional.

Also recall from Chapter 4 that optimists perceive the causes of events in a particular way. That is, optimists  often attribute successes to “personal, permanent, and per- vasive causes, and negative events to external, temporary, and situation-specific ones.”89 Scientists argue that optimism is part of what alters our views of the likely out- comes in our lives and motivates us to act.90 The following OB in Action box illustrates the power of optimism for two successful entrepreneurs.

Brothers Bert and John Jacobs are the founders of Life Is Good (LIG). The company is probably best known for its Life Is Good T-shirts, but it now sells more than 900 items in 4,500 stores in 30 coun- tries.91 The company’s mission is to spread the power of optimism “through art, a passionate com- munity, and groundbreaking nonprofit work.”92

The brothers’ road to success was long and tough. The two spent years driving a used van up and down the East Coast selling T-shirts printed with their artwork. They survived on peanut butter and jelly, slept in the van, and rarely showered. After five years they had $78 in the bank, but that didn’t cause them to give up.93 Their break- through occurred when they realized they wanted to “counter the daily flood of negative news”94 bombarding people every day in the media. 

“That led to a keg party at our apartment where we put drawings up on a wall. We had done a lot of music-inspired, cool, funky designs. But when we asked friends to write notes next to the drawings, we got a lot of comments about one drawing [a stick figure that smiled]. We de- cided to pair the figure with the words ‘LIFE IS GOOD’ and printed up 48 T-shirts with it. We went to a street fair and sold all of them in the first hour. It confirmed that people were craving something positive that focused on the good, instead of what’s wrong with the world.” The rest is history.95

Life Is Good . . . Spread the Power of Optimism OB in Action

Brothers John (left) and Bert Jacobs started Life Is Good T-shirts with very few resources. Through a combination of hope and the belief that optimism is powerful, they have built a $100 million apparel business. © Rachel Murray/Getty Images

276 PART 1 Individual Behavior

Did you ever wonder why people are optimistic in the first place? What function does optimism serve? One school of thought claims it is self-inspiration, our mind’s way of motivating us to move forward even if the future is uncertain. The rationale is that if hu- mans didn’t think the future would be bright—an improvement over today—they might be crippled with fear and uncertainty, never take risks, and never better themselves or their situation. After all, humans have the unique ability to think ahead and to realize they will die some day. If the mind didn’t have some way of combating this, many people would be preoccupied with gloom and wouldn’t save money or invest in their children.

Therefore, a belief that things can or will be better in the future not only helps keep our minds at ease, but it also reduces stress (discussed in Chapter 16) and helps us paint our decisions in a positive, appealing light. It keeps us moving forward.

How I Can Develop My PsyCap Like other more conventional forms of capital (cash, facilities, patents, equipment), PsyCap is a resource you invest in or develop with the expectation of future returns or benefits. It can help you flourish in your professional and personal life. And its compo- nents are mutually reinforcing—developing one often helps develop the others.98 Try putting the following recommendations into practice to develop your PsyCap.

• Hope development. Generate a work-related goal that is important to you and at- tainable yet challenging; create multiple plans for achieving this goal. Share these with others—coworkers or classmates—to get their feedback and recommendations.

• Efficacy development. Besides recommendations from Chapter 3, break your larger goal into smaller subgoals as discussed in Chapter 6. Create plans for achiev- ing the subgoals and share them with others to get feedback and recommendations.

• Resilience development. Make a list of your personal talents, skills, and social networks; specify how these can help you achieve your goal; identify potential obstacles and decide how to avoid them or reduce their impact.99

• Optimism development. Hope development bolsters your optimism, but it also is helpful to identify obstacles and negative expectations. On your own, check to see whether the obstacles you identify are valid, and then have others challenge your assumptions.

Today, revenue exceeds $100 million annually, which provides the brothers the means to invest in other opportunities and help fulfill their mission of spread- ing optimism. The No. 1 criterion they use when evaluating opportunities is a “clear, unifying goal or mission.”96 The other details, while important, are simply a vehicle for delivering or realizing the mission.

The brothers offer the following advice to other entrepreneurs:97

1. Start with a purpose or mission. “It makes it easier to withstand setbacks, to motivate yourself and others, to recruit and unite a team around your idea. . . . We all crave meaning in our lives—build it into your adventure.”

2. Remain open to feedback. “Rejection can be your best teacher. It forces you to make adjustments and grow smarter and stronger.”

3. Work and play. Be sure you play at work. Everything is better when it includes laughter and fun.

YOUR THOUGHTS?

1. What are the potential sources of the Jacobs brothers’ optimism? 2. How could you apply their approach to your own life—at school, work, or

personally? 3. What are the potential downsides to optimism? Explain.

277Positive Organizational Behavior CHAPTER 7

Learning your personal PsyCap score can help you understand and improve your ability to find a job, increase your creativity and innovativeness, and reduce the stress in your life.100 Your score will also serve as the basis for developing hope, efficacy, resil- iency, and optimism, as described above.

What Is My Level of PsyCap? Please be prepared to answer these questions if your instructor has assigned Self- Assessment 7.3 in Connect. 

1. Which score is the highest? The lowest? Complete the PsyCap development steps, and be sure to utilize your highest or strongest component. Pay extra at- tention to developing the lowest or weakest.

2. In the Organizing Framework identify a process at all three levels—individual, group, and organizational—that PsyCap is likely to influence.

3. Describe one thing you can do to further develop each component of your PsyCap.

Adapted from F. Luthans, C. M. Youseff, and B. J. Avolio, Psychological Capital: Developing the Human Competitive Edge (Oxford, UK: Oxford University Press, 2006).

SELF-ASSESSMENT 7.3

Let’s conclude this section with an exploration of signature strengths. 

Signature Strengths Signature strengths  “are positive human traits that influence thoughts, feelings, and behaviors and provide a sense of fulfillment and meaning.”101 Signature strengths are a subset, typically three to seven for most individuals, of a larger collection of 24 character strengths (see Table 7.3). What helps differentiate signature strengths from the rest is that “a person owns, celebrates, and frequently exercises”102 them, and these strengths are “core to people’s identities, and they feel authentic, exciting, and invigorat- ing when used.”103 Signature strengths can be developed, too.

A Departure from Past and Present The “strengths movement” represents a dra- matic departure from conventional management research and practice. Historically, and still, the vast majority of writing, research, and actual managing focuses on how to fix what is wrong and who is underperforming or otherwise not meeting expectations.

Many large and successful organizations are putting the strengths approach to the test, such as VMware, Wayfair, and the Boston Consulting Group. The primary focus now is on employee successes and potential, rather than on missteps and

TABLE 7.3 THE 24 CHARACTER STRENGTHS

Creativity Zest Modesty

Curiosity Love Prudence

Judgment Kindness Self-regulation

Love of learning Social intelligence Beauty

Perspective Teamwork Gratitude

Bravery Fairness Hope

Perseverance Leadership Humor

Honesty Forgiveness Religiousness

278 PART 1 Individual Behavior

deficiencies.104 Research by the Gallup organization on employee strengths shows some impressive findings. Employees who report using their strengths every day at work are: 

• Three times more likely to report having an excellent quality of life. • Six times more likely to be engaged at work. • 8 percent more productive. • 15 percent less likely to quit.105

Would you like to be more engaged with school, work, and leisure activities? If yes, then your signature strengths are the key. Self-Assessment 7.4 will help you identify your sig- nature strengths. You can use your scores to assess how you might build your strengths into your daily activities at school, work, and life.

What Are My Signature Strengths? Please be prepared to answer these questions if your instructor has assigned Self-Assessment 7.4 in Connect.

1. What are your highest-scoring strengths?

2. What are your weaknesses (the components with the lowest scores)?

3. Which of your strengths are you using on a daily basis?

4. What can you do to incorporate your strengths into your school, work, and leisure activities?

SELF-ASSESSMENT 7.4

Applying Strengths at Work Consultants who work for Gallup, a firm who has been instrumental in the strengths movement, said: “Giving employees a chance to excel by do- ing what they do best every day seems like a no-brainer. In too many organizations, though, encouraging employees to know and use their strengths at work is limited to a guerrilla movement.”106 This quotation highlights that the fundamental obstacles to realizing the benefits associated with signature strengths are situation factors, such as leaders, manag- ers, performance management practices, and organizational culture. Put another way, of course it is necessary to be aware of your strengths, but it also is necessary to be in situa- tions that allow you to use them.107 To help with this, we provide the following guidance on how organizations can create environments that foster and utilize employees’ strengths: 1. Look in the mirror. Like most work endeavors, a strengths approach requires leader

support to succeed. Begin with leaders learning their own strengths and being open about them. For instance, leaders who show vulnerability and admit to their own mis- takes and limitations can serve as powerful role models for the larger organization.”108

2. Build strengths into performance management. Strengths need to be supported by expectations, measurement, review, and rewards. It is an uphill battle to talk about, encourage, and celebrate strengths if the performance management practices do not support them.109

3. Know your purpose. Leaders need to be clear on why they and the organization are focusing on strengths—what is the intended benefit? Is it greater collaboration, increased customer satisfaction, innovation, or reduced turnover? Employees need to understand why and how strengths are important to the organization and its objectives.110

4. Coach and develop strengths-oriented managers. A strengths approach is not common, and implementing it effectively requires effort. Set your managers up to win by providing appropriate coaching and support.111

Now that you have a sense of two flexible and very important positive individual differences—psychological capital and signature strengths—we move to the group/team level in the next section and discuss organizational climate. You’ll learn how policies and practices can help foster and realize the positive attributes of employees.

279Positive Organizational Behavior CHAPTER 7

Just as a car needs gasoline or electric power to run, Positive OB needs the right environ- ment to flourish. Figure 7.2 revealed that organizational culture and climate are the situa- tion factors that promote positive work environments. We focus on organizational climate in this section because organizational culture is thoroughly discussed in Chapter 14.

Organizational climate  consists of employees’ perceptions “of formal and in- formal organizational policies, practices, procedures, and routines.”112 In plain lan- guage, organizational climate reflects employees’ beliefs about what they see going on at work and what is happening to them. These perceptions can range from positive and up- lifting to negative and debilitating. Positive climates, such as one that supports safety, lead to positive outcomes like fewer accidents at work.113 In contrast, negative climates that support abusive supervision or fear are associated with negative outcomes, such as less cooperation, less citizenship behavior, and lower performance.114 What type of cli- mate do you think is most likely to promote positivity from situation factors?

The answer is simple, according to the authors of Fortune’s study of the 100 Best Companies to Work For. “The key to creating a great workplace,” they said, “was not a prescriptive set of employee benefits, programs, and practices, but the building of high- quality relationships in the workplace.”115 Figure 7.3 presents a model showing that posi- tive climates are a function of organizational values, organizational practices, and virtuous leadership. Let us consider each of these situation factors.

Organizational Values We defined values in Chapter 2 as abstract ideals that guide our thinking and behavior across all situations. In the context of organizational climate, organizational values repre- sent the ideals that are endorsed, shared, and supported by the organization as a whole. A team of researchers identified three global values that are essential for promoting positive organizational behavior (see Figure 7.3). Each value is defined below.116

1. Restorative justice  reflects “a shared belief in the importance of resolving con- flict multilaterally through the inclusion of victims, offenders, and all other stake- holders.”117 Organizations that subscribe to restorative justice tend to resolve conflict by giving all parties a chance to express their thoughts and feelings. This in turn leads to healing when there has been hurt or offense, thereby producing solutions that focus on the greater good. Rudeness, in contrast, was found to spread like a disease, causing destructive relationships at work.118 We should all try to avoid being rude.  

7.5 CREATING A CLIMATE THAT FOSTERS POSITIVE ORGANIZATIONAL BEHAVIOR 

M A J O R Q U E S T I O N

How can managers create an organizational climate that fosters positive organizational behavior?

T H E B I G G E R P I C T U R E

OB has a term for the way you and your cohorts might evaluate the school you attend or the

workplace you share: organizational climate.  A positive climate is one component that makes

positive organizational behavior work. You’re about to find out how organizations and man-

agers can foster such a climate.

280 PART 1 Individual Behavior

2. Compassion  is a shared value that drives people to help others who are suffering. It is associated with behaviors related to sympathy, kindness, tenderness, warmth, and love.119

3. Temperance  is a shared belief in showing restraint and control when faced with temptation and provocation. Temperance promotes self-control, humility, and prudence. It helps people avoid egocentric and heated emotional responses and prac- tice patience and restraint.120

Organizational Practices Organizational practices  are the procedures, policies, practices, routines, and rules that or- ganizations use to get things done. Figure 7.3 shows that training programs, support programs, and human resource practices and policies repre- sent three key sets of practices that shape organiza- tional climate.121 For example, Bath & Body Works is trying to improve its climate by ending its policy of on-call scheduling. Although the policy helps stores to flexibly manage their staff, it “leaves workers with unpredictable schedules and incomes,” according to The Wall Street Journal.122

Employees have greater commitment, satis- faction, citizenship behavior, and performance— and lower absenteeism and intentions to quit—when they believe organizational practices support them professionally or personally.123 The Container Store, for instance, bucked recent trends by providing part-time workers with health insur- ance and reducing their deductibles and co-pays. Medical device maker Arthrex offers employees free catered lunches and year-end profit sharing.124 

Organizational Climate That

Fosters Positive Organizational

Behavior

• Restorative Justice • Compassion • Temperance

Organizational Values

• Training • Support Programs • Human Resource Practices, Programs, and Policies

Organizational Practices

• Greater Good • Trust • Integrity • Forgiveness

Virtuous Leadership

FIGURE 7.3 CREATING A CLIMATE THAT FOSTERS POSITIVE ORGANIZATIONAL BEHAVIOR

Nashville Apple store worker Andrew Wall—on the right—showed compassion to 9-year-old James Rink. Rink, who has Down syndrome, was shopping with his mom for an iPad when he inadvertently walked into the store’s glass wall and fell. Wall joined Rink on the floor and asked “Are you OK? What can I do for you?” Wall continued to work with Rink in the middle of the floor and ultimately made the sale. Rink and his mom were overjoyed with the encounter. Courtesy of Lynn Rink

281Positive Organizational Behavior CHAPTER 7

Virtuous Leadership Virtuousness  represents “what individuals and organizations aspire to be when they are at their very best.”125 The focus of virtuous leadership is to help individuals, groups, and organizations to elevate, enrich, and flourish. Although Chapter 12 provides a broad discussion of leadership, we consider it here as well due to its significant relation- ship with organizational climate.126

Virtuous leadership will not positively affect organizational climate unless it is vol- untary and performed as an end in itself. In other words, an act is virtuous only when it is done for the purpose of doing good. If your purpose is instead to get someone to help you, your actions are manipulative rather than virtuous.127 Let us examine the key components of virtuous leadership and its consequences.

Components of Virtuous Leadership OB scholars have proposed a variety of traits and individual differences that underlie virtuous leadership. The four shown in Fig- ure 7.3 were selected because they are most frequently discussed in OB research. Virtu- ous leaders are more focused on the greater good than on self-interest. They tend to do things that benefit the largest possible number of people. Starbucks, for instance, imple- mented its College Achievement Plan to make all employees eligible for an online degree from Arizona State University, at no expense and with no obligation to remain at the company. Scott Pitasky, the company’s top human resources executive, said, “Starbucks’ goal of creating a positive work experience for its employees is only part of the compa- ny’s loftier vision. . . . At a very high level, we are looking for ways to create and integrate economic and social value.”128

Virtuous leaders tend to promote trust by making sure their words match their actions, and by treating people with respect and dignity. Integrity, which comes from being guided by morals and honesty, also fosters positive OB. For example, people who lied less over 10 weeks were found to have improved mental and physical health than people who lied more frequently.129 That said, a neurological study of lying revealed that it takes self-control to display integrity because lying is often associated with positive consequences.130

The final component of virtuous leadership, forgiveness,  is “the capacity to foster collective abandonment of justified resentment, bitterness, and blame, and, in- stead, it is the adoption of positive, forward-looking approaches in response to harm or damage.”131 In addition to promoting posi- tive outcomes, forgiveness can affect your health. Research shows that unforgiveness is associated with bitterness, anger, health problems, and prema- ture death.132

Effects of Virtuous Leadership Research is starting to accumulate on the impact of virtuous leadership. It has been associated with financial per- formance, customer satisfaction, organizational cli- mate, and subjective measures of organizational effectiveness one to two years later.133 In contrast, lack of virtuous leadership negatively affects indi- viduals and organizations alike. Consider what hap- pened at Rutgers University. Head men’s basketball coach Mike Rice was fired in 2013 after a video sur- faced that showed him “kicking players and throw- ing basketballs at them while using gay slurs.” The athletic director resigned and the university experi- enced backlash from the investment community. In- vestors in state and local bonds have demanded extra yield for university securities since the video of Rice surfaced.134 

Mike Rice, former men’s basketball coach at Rutgers University, was fired because of his behavior toward players. Would you like to be coached by someone who threw basketballs at players during practice? Can people learn to be more virtuous? © Frank Franklin II/AP Photo

282 PART 1 Individual Behavior

M A J O R Q U E S T I O N

What can I do to enhance my level of flourishing?

T H E B I G G E R P I C T U R E

Asked what you want out of life, you might reply that you want to be happy. One early leader in

the positive psychology movement eventually went beyond that goal and proposed another:

Flourishing. You may find this broadened goal to include even more of your true aspirations.

Flourishing, a key individual-level outcome in the Organizing Framework, includes five elements.

They are positive emotions, engagement, relationships, meaning, and achievement (PERMA).

7.6 FLOURISHING: THE DESTINATION OF POSITIVE ORGANIZATIONAL BEHAVIOR 

Martin Seligman, a renowned psychologist from the University of Pennsylvania, has been studying happiness and well-being for over 30 years. He is credited as being the driver of today’s positive psychology movement, which is the forerunner of research on positive OB.135 Seligman originally believed that happiness was the most important outcome in our lives. He changed his mind over the years. He now feels that people equate happiness with being cheerful, and you don’t have to be cheerful to be physically or psychologically healthy. 

Seligman proposed that well-being  was the combined impact of five elements— positive emotions, engagement, relationships, meaning, and achievement (PERMA). Well-being comes from freely pursuing one or more of these five elements, according to Seligman.136

Flourishing  represents the extent to which our lives contain PERMA. PERMA is the most important outcome from the process of positivity shown in Figure 7.2 When we flourish, our lives result in “goodness . . . growth, and resilience.”137 We should all strive to flourish because of its association with other positive outcomes like lower cardiovascular risk, lower levels of inflammation, longer life, greater REM sleep, and positive mental health.138 PERMA elements also are positively related to important outcomes in the Organizing Framework— task performance, career satisfaction, organizational commitment, and low turnover.139

Jerome Dodson, fund manager for the Parnassus Fund, has taken the concept of flourish- ing to heart when he makes investment decisions. He uses the extent to which a company is socially responsible and cares about the greater good when it comes to employees and com- munities as one criterion for selecting investment opportunities (see the OB in Action box).

Parnassus Investments was started in 1984 by Jerome Dodson with $350,000 from friends and family. Today, the company manages over $15 billion in six funds. What’s unique about it is the selection criteria Dodson uses to identify investment opportunities. Dodson’s initial investment philosophy was grounded in the belief that ethical companies with positive working environments are good investments. As he says, “It made a lot of intuitive sense to me that companies that treat their

Values-Based Investing at Parnassus Fund OB in Action

283Positive Organizational Behavior CHAPTER 7

As you read about the elements contained in PERMA, keep in mind that research suggests that many people are not flourishing. For example, a recent survey of 160,000 people around the world revealed that 33 percent reported above-average stress.143 US data further showed that a majority of people lose sleep due to work-related stress and many people are abusing painkillers to combat it. Painkiller abuse costs employers about $25.5 billion a year in absenteeism and lost productivity.144

Positive Emotions Although we thoroughly discussed positive emotions earlier in this chapter, one as- pect of Barbara Fredrickson’s “broaden and build” theory bears repeating because it enhances your ability to experience the other components of PERMA. Positive emo- tions broaden your perspective about how to overcome challenges in your life. For example, the emotion of joy is more likely to lead you to envision creative ideas dur- ing a brainstorming session. Positive emotions also build on themselves, resulting in a spreading of positive emotions within yourself and those around you. Research shows that “people in groups ‘catch’ feelings from others through behavioral mim- icry and subsequent changes in brain function. If you regularly walk into a room smiling with high energy, you’re much more likely to create a culture of joy than if you wear a neutral expression.”145

Pirch, a California-based retailer that specializes in fixtures and appliances for kitchen, bath, and outdoors, has taken advantage of positive contagion (see the OB in Action box).

employees well should in return get good efforts from their employees and they should be more successful as a business.”140 Dodson admits that he makes in- vestment decisions by integrating old-fashioned financial research with informa- tion obtained by interviewing managers and employees at companies under consideration. He also assesses the “positivity” of work environments by examin- ing annual rankings contained in independent sources such as Fortune and Work- ing Mother.

Treating employees positively is not enough in Dodson’s view. He thinks com- panies should also be ethical and in some way contribute to the greater good of society. Thus his investments have excluded alcohol, tobacco, gaming, weapons, and nuclear-power-related companies since 1984. According to Barron’s, Dodson’s strategy has “kept Parnassus from owning Valeant, whose business model of huge price increases for drugs with a limited market made him recoil. Initially, Dodson says he wasn’t even aware of Valeant’s reliance on the mail-order pharmacy Philidor, which used questionable tactics to get insurers to pay for drugs: ‘It’s definitely not ethical investing.’”141

Let’s consider whether Dodson’s philosophy holds up by comparing returns achieved by the Parnassus Fund to those of the S&P 500. Looking backward from the start of 2016, Dodson’s fund realized 4.6 percent, 18.1 percent, and 15.7 per- cent gains for one-, three-, and five-year periods. In contrast, the S&P 500 ob- tained returns of –.01 percent, 13 percent, and 10.6 percent during the same periods.142

YOUR THOUGHTS?

1. What is driving Dodson’s approach to investing? 2. What are the pros and cons to making investment decisions based on the way

a company treats its employees? 3. Do you think Dodson’s approach will continue to be effective over time? Explain.

284 PART 1 Individual Behavior

Pirch has eight locations across the United States. Its founders’ vision was to reinvent the way people shop for home appli- ances, as follows:

“We are not here to sell you what we want, rather our focus is to guide you to discover and fall in love with the best products that best suit how you live.” Pirch wants shoppers to view its stores like a playground where they have fun trying out various prod- ucts while sampling “complimen- tary chef-prepared sweet and savory bites and handcrafted coffees.”146

To turn this vision into reality, Pirch is pursuing a two-part strategy. The first al- lows shoppers to test products. For instance, customers can bring their bathing suits and soak in a $20,000 granite tub or unwind in a steam room. Putting the customer first is the second part of the strategy. This begins when customers cross the threshold of a store and are warmly greeted “with a fresh coffee and serving [of ] complimentary food or snacks while they browse or complete a sale.”147

“Pirch urges all to ‘live joyfully,’ and sayings from its manifesto—‘Play more, think less,’ ‘Be crazy about something,’ and ‘Forgive’—are featured in every store.” To reinforce these ideas the company trains its employees to work joyfully. The training lasts five days and demonstrates how positive emotions influence cus- tomers. According to Pirch CEO Jeffrey Sears, “The emotion of the stores ema- nates from the smiles on people’s faces and the passion they have about serving others.”148

Training also “explores the company’s 23 ‘elements of joy’ and how those principles should guide actions.” Gratitude exercises are used to help employees bond, and everyone spends half a day with the CEO. According to Fortune, the CEO “gives frank answers to personal questions that can be painful to share, teaching the importance of building trust with customers.” Employees conclude training by visiting different luxury retailers to investigate how salespeople can shape a customer’s experience.149

It appears that an emphasis on joy and positivity is working for Pirch. Sales per square foot average more than $3,000, which places it above all but three U.S. retailers (Apple, Murphy USA, and Tiffany), according to eMarketer.150

YOUR THOUGHTS?

1. What do you think about the concept of training employees to work joyfully? 2. Why would a salesperson’s display of joy and gratitude enhance a customer’s

experience? 3. Do you think Pirch is going overboard with respect to creating positivity in its

stores? Explain.

Pirch Spreads Joy OB in Action

Pirch’s philosophy hangs above the front door of its Costa-Mesa showroom. The sign says “Live Joyfully.” © Mark Steele/Pirch

285Positive Organizational Behavior CHAPTER 7

Engagement You may recall from Chapter 2 that employee engagement reflects the extent to which you are physically, cognitively, and emotionally engaged in an activity, task, or project. This state is sometimes called being in the “zone” or in a state of “flow.” Flow  “is the state of being completely involved in an activity for its own sake.”151 Flow is a positive state because our well-being benefits from our deep attention to and engagement with an activ- ity. A recent study of flow over a four-day period, for instance, revealed that people were more energized in the evenings if they experienced flow during the workday.152

Engagement and positive emotions are not one and the same. For example, when we are in flow, we are not necessarily thinking about anything; we are just doing! Our con- centration is so high during flow that we use all the cognitive and emotional resources normally needed for thought and feelings. 

How can you create engagement or flow for yourself? Seligman and others suggest that this is a two-part sequence consisting of (1) identifying your signature strengths and (2) learning to use them in your daily personal and work activities. For us, working on this book, teaching, and playing golf put us into flow. Once you have identified your strengths, you can work with your manager to determine how to incorporate them into your job.

Relationships Think of the last time you laughed boisterously, felt joyous, were inspired, or experienced awe. Were you with someone else at the time? We suspect so, because positive emotions are often associated with activities that include others.

Biologists have concluded that we are creatures of the hive. After studying insects such as wasps, termites, and ants, researchers concluded that the group is a natural unit of selection. In other words, insects and people both like to be in groups and to work collab- oratively with others in getting things done. For insects it’s building a fortress or hive, and for us it’s completing tasks and projects, socializing, sharing memories, and traveling.

While others sometimes get on our nerves, positive relationships are a strong con- tributor to our well-being. They buffer us from stressors and provide resources that enable us to more effectively get things done. Positive relationships fuel the giving and receiving of social support. Social support  is the amount of perceived helpfulness we derive from social relationships. There are four types.

• Esteem support: reassurance that a person is accepted and respected despite any problems or inadequacies.

• Informational support: help defining, understanding, and coping with problems. • Social companionship: time spent with others in leisure and recreational activities. • Instrumental support: financial aid, material resources, or needed services.153

You can enhance your level of flourishing by seeking social support, but you also will flourish by providing support to others, particularly in the form of kindness. Research re- veals that the exhibition of kindness produces significant increases in well-being.154 Con- duct a kindness exercise by doing a completely unexpected thing for someone else. It can be as simple as holding a door open for another to pass through or helping someone with direc- tions. Then notice how you feel. You should experience one or more positive emotions.

Meaningfulness Viktor Frankl, an Austrian neurologist and psychiatrist who survived the Holocaust, was a strong proponent of using meaningfulness to promote well-being. His best-selling book Man’s Search for Meaning chronicled his experiences in concentration camps and summarized what he learned from these events. Frankl’s conclusion was that “striving to find a meaning in one’s life is the primary motivational force” for people.155 In other words, it is the drive to find meaning in our lives that instills in us a sense of purpose and motivation to pursue goals.

286 PART 1 Individual Behavior

Meaningfulness  is the sense of “belonging to and serving something that you believe is bigger than the self.”156 In our case, for instance, we derive meaning from writing this book because we believe it can enrich your life and help you manage others more effectively. We have three suggestions for building meaning into your life.

1. Identify activities you love doing. Try to do more of these activities or find ways to build them into your work role. Employees at St. Jude Children’s Research Hospital embody this suggestion. They truly enjoy participating in the St. Jude Marathon weekend because it raises money for the children being treated at the hospital. One employee, a cancer sur- vivor, commented, “Each year it provides me with another opportunity to give back so that we can help countless other children have anniversaries of their own.”157

2. Find a way to build your natural strengths into your personal and work life. You assessed your signature strengths earlier in Self-Assessment 7.4.

3. Go out and help someone. Research shows that people derive a sense of meaning- fulness from helping others.158 Salesforce.com encourages this result by giving em- ployees six paid days a year to volunteer. All told, company employees logged over one million volunteer hours in 2015.159 Remember, helping others creates the upward spiral of positivity discussed earlier in this chapter.

Achievement The final component of PERMA, achievement, pertains to the extent to which you have a self-directed “achieving life.” In other words, we flourish when we pursue achievement for its own sake. Doing so fosters feelings of competence and mastery, which in turn en- hances our self-esteem and self-efficacy. Companies help employees achieve by provid- ing both skills-based training and professional developmental activities. Training magazine created a list of the top 125 U.S. companies that invest in such training. The top five in 2016 were Jiffy Lube, Keller Williams Realty, Inc., CHG Healthcare Services, Capital BlueCross, and Blue Cross Blue Shield of Michigan.160

What types of support do you see in this photo of the aftermath of the 2013 Boston marathon bombing? What other aspects of PERMA would be activated by helping others in a tragedy like this? © MetroWest Daily News, Ken McGagh/AP Photo

287Positive Organizational Behavior CHAPTER 7

In this chapter, you learned that positive OB fo- cuses on creating work environments in which people flourish, and that a number of techniques can help you increase your positivity at school and home. Reinforce your learning with the Key Points below. Then consolidate your learning us- ing the Organizing Framework. Challenge your mastery of the material by answering the Major Questions in your own words.

Key Points for Understanding Chapter 7 You learned the following key points.

7.1 THE VALUE OF POSITIVE ORGANIZATIONAL BEHAVIOR

• Positive OB emphasizes positive emotion, mindfulness, psychological capital, signature strengths, and organizational climate to foster positive outcomes across all three levels of OB.

• Positive OB operates via three principle ef- fects: amplifying, buffering, and positivity. Combined, these generate positive outcomes.

• Positivity is more than positive thinking and hap- piness, and it improves more than performance. It can also support stronger relationships, more prosocial behaviors, stronger bodies and im- mune systems, and original thinking.

7.2 THE POWER OF POSITIVE EMOTIONS

• Negative emotions cause you to narrow your focus, while positive emotions cause you to broaden your thinking.

• Positive emotions are contagious and can be actively increased. 

• Research shows that you need multiple posi- tive experiences to overcome or compensate for each negative.

7.3 FOSTERING MINDFULNESS • Mindlessness is a state of reduced attention,

while mindfulness is fostered by paying attention to the present moment in a nonjudgmental way.

• Two key inhibitors of mindfulness are atten- tional deficits and attentional hyperactivity.

• Mindfulness can be learned through a variety of simple “meditative” techniques practiced on a regular basis.

7.4 DEVELOPING PSYCHOLOGICAL CAPITAL AND SIGNATURE STRENGTHS

• Positive psychological capital consists of hope, efficacy, resilience, and optimism (HERO).

• Hope includes not only a goal and determina- tion to achieve it, but also one or more clear paths for achieving it.

• Resilience is your ability to bounce back after adversity and sustain yourself.

• Optimism attributes positive events to per- sonal, permanent, and pervasive factors.

• Signature strengths are a handful of personal attributes that influence your thoughts, feelings, and behaviors. You feel authentic, excited, and invigorated when you exercise them.

7.5 CREATING A CLIMATE THAT FOSTERS POSITIVE ORGANIZATIONAL BEHAVIOR

• Organizational climate represents employees’ perceptions of an organization’s policies, practices, procedures, and routines.

• Positive organizational climates are a function of organizational values, organizational prac- tices, and virtuous leadership.

• Positive climates are driven by values pertain- ing to (1) restorative justice, (2) compassion, and (3) temperance.

• The key components of virtuous leadership are a focus on the greater good, trust, integ- rity, and forgiveness.

7.6 FLOURISHING: THE DESTINATION OF POSITIVE ORGANIZATIONAL BEHAVIOR

• Flourishing reflects the extent to which our lives contain five elements: positive emotions,

What Did I Learn?

288 PART 1 Individual Behavior

the organizational level, outcomes include financial performance, overall organizational performance, and customer satisfaction.

Challenge: Major Questions for Chapter 7 You should now be able to answer the following questions. Refer to the Key Points, Figure 7.4, the chapter itself, and your notes to revisit and an- swer the following major questions:

1. How does understanding positive organiza- tional behavior benefit me?

2. How can positive emotions make me more ef- fective at school, at work, and in other arenas of life?

3. How can mindfulness contribute to my effectiveness?

4. How can my inner HERO and signature strengths benefit me at work and in my career?

5. How can managers create an organizational climate that fosters positive organizational behavior?

6. What can I do to enhance my level of flourishing?

engagement, relationships, meaning, and achievement (PERMA). It is a key outcome in the Organizing Framework.

• Positive emotions have a contagion effect. • You can increase your engagement by using

your signature strengths in everyday activities. • Four key types of social support are esteem

support, informational support, social com- panionship, and instrumental support.

The Organizing Framework for Chapter 7 Figure 7.4 shows that four person factors and five situation factors contribute to positive outcomes across the three levels of OB. You can also see that there are processes at the individual, group/team, and organizational level that affect outcomes. As for outcomes affected by the inputs and processes shown in Figure 7.4, individual-level ones include task performance, work attitudes, flourishing, phys- ical health, citizenship behavior/counterproductive behavior, turnover, and creativity. At the group/ team level, outcomes include group/team perfor- mance and group cohesion and conflict. Finally, at

FIGURE 7.4 ORGANIZING FRAMEWORK FOR UNDERSTANDING AND APPLYING OB

SOURCE: © 2014 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors.

INPUTS PROCESSES OUTCOMES

Person Factors • Emotions • Mindfulness • Psychological capital • Signature strengths Situation Factors • Organizational culture • Organizational climate • Organizational values • Virtuous leadership • Organizational practices

Individual Level • Communication • Decision making discretion • Interpersonal conflict Group/Team Level • Communication • Civility • Group Dynamics Organizational Level • Communication

Individual Level • Task performance • Work attitudes • Flourishing • Physical health • Citizenship behavior/

counterproductive behavior

• Turnover • Creativity Group/Team Level • Group/team performance • Group/team cohesion and

conflict Organizational Level • Accounting/financial

performance • Organizational

performance • Customer satisfaction

289Positive Organizational Behavior CHAPTER 7

IMPLICATIONS FOR ME There are six ways you can apply the material in this chapter. First, since positive practices amplify positive outcomes, you can improve your work environment by identifying and em- phasizing such practices, like sharing important information and providing effective feed- back. Second, if you are upset with your partner or coworker, try to think of at least three things you like or appreciate about him or her. Similarly, if someone is upset with you, real- ize that you need several characteristics or actions to compensate for each negative. Third, develop a plan to be more mindful. Techniques such as meditation and yoga can enhance your ability to focus and hold your attention. Many good books and apps can help in this pursuit. Fourth, making your goals SMART and formulating effective action plans will help build your level of hope (goal + path = hope). Hope should boost your goal commitment and success. Fifth, you can contribute to a positive organizational climate by adhering to the values your employer endorses and by trying to be more virtuous. Finally, develop a plan to build PERMA into your life by focusing on those components over which you have more control. You can make a choice to be more positive, you can work on building more positive relationships in your life, and you can strive for achievement.

IMPLICATIONS FOR MANAGERS There are seven key implications for managers. First, identify existing positive practices, such as appropriately and regularly recognizing performance, and be sure to emphasize them. Role-model these practices and watch your people flourish. Second, realize that your emo- tions are contagious. To build a positive environment for your people, be positive yourself. Random acts of kindness can go a long way (give somebody a spot bonus or an afternoon off, or throw an impromptu celebration in the office). Third, model mindfulness by being focused on the present moment whenever you are talking or meeting with others. You can also estab- lish a policy of not using web-based or mobile technologies during meetings. Fourth, encour- age your employer to train employees in mindfulness techniques. Fifth, learn about and utilize your strengths and those of the people you manage. Be sure to verbally acknowledge others’ strengths and create opportunities for them to be used. Sixth, endorse and model your em- ployer’s stated corporate values and try to engage in more virtuous leadership. Finally, support your employees’ level of PERMA by engaging in one or more of the following: (1) display posi- tive emotions at work, (2) identify the tasks or responsibilities that engage your employees and find ways to design them into their jobs, (3) provide the four sources of social support when possible, (4) use I-deals, discussed in Chapter 5, to help employees find meaning in their work, and (5) encourage creative approaches to achieving goals.

290 PART 1 Individual Behavior

Forever 21 was founded in downtown Los Angeles in 1984 by a Korean-American immigrant couple, Do Won Chang and Jin Sook. They are known as Mr. and Mrs. Chang and still run the privately held company. Today, it employs about 35,000 people and runs 600 stores worldwide, with operations in the United States, Canada, China, Europe, Hong Kong, India, Israel, Japan, Korea, Latin America, Mexico, the Philippines, and the United Kingdom.161 The company made about $4.5 billion in 2015.

The Changs are born-again Christians and try to run their business using Christian values. Mrs. Chang told Bloomberg Businessweek that she prayed about whether to open their first store. God told her to do so and promised she would succeed. The couple attend a daily prayer meeting at their church, where Mr. Chang leads a Bible study and Mrs. Chang is a deacon. The pastor noted that the Changs have contributed millions of dollars to worldwide missions.

The Changs’ faith is represented in their stores, where every bright yellow shopping bag includes a reference to John 3:16. This Bible verse says, “For God so loved the world that he gave his one and only Son, that whoever believes in him shall not perish but have eternal life.”162

FOREVER 21’S KEY VALUES  1. Supplier and Vendor Social Compliance and

Ethical Sourcing. The company commits to caring “not only for our employees but also for the employees of hundreds of vendor manufacturing facilities throughout the world which make our products. We want all of these employees also to work in safe and healthy environments.”

2. Support Charities. “At Forever 21, one of our core values is to encourage giving, to lend a helping hand to those who need it most.”

3. Environmental Sustainability. “Forever 21 is committed to reducing its environmental footprint throughout its global operations.”163

ARE THESE VALUES BEING LIVED AT THE COMPANY? Forever 21 has experienced a number of lawsuits and controversies regarding different aspects of its operations.

• The US Department of Labor issued a subpoena in 2012 to force Forever 21 to reveal “how much the company’s suppliers pay the workers who make its clothes. Anecdotal evidence suggests the salaries are well under the current US federal minimum wage of $7.25 an hour.” After the company failed to provide the information, a US District Court judge ordered the company to provide the re- quested data.164

• A class-action lawsuit accuses the company of “failing to provide meal breaks, rest periods and overtime wages. Plaintiffs . . . claim that requisite bonuses weren’t paid which qualify as overtime, and that the company failed to cover business expenses as required under law.” Although the case has not been settled, plaintiffs “may be entitled to up to $4,000 in penalties as well as any due wages.”165

• The company decided to reclassify 1 percent of its workforce to part-time status, working a maximum of 29.5 hours a week. This level of work is just “un- der the 30-hour full-time designation assigned by the Affordable Care Act, which requires companies who employ 50 or more workers to provide health insurance coverage for their full-time employees or face a penalty. Newly part-time workers who were enrolled in medical, dental, vision and voluntary plans will also see their coverage cut off on August 31 [2013], and they won’t be able to receive paid time off.”166 These actions led to a social media firestorm, resulting in comments such as, “A true Christian thinks of others first and is not greedy. Tell me, just how rich do you need to be?” Another person wrote, “Jesus Christ would never, NEVER do this to anyone, ever.”167

• Forever 21 agreed to pay $100,000 in penalties to the Occupational Safety and Health Administration (OSHA) for safety violations at its Westfarms Mall store in Farmington, Connecticut. A store inspec- tion revealed that emergency exits and hallways were blocked by store inventory. Boxes were “piled as high as 10 feet and stacked in an unstable man- ner so that they blocked exit routes or could fall onto workers. The company contested the citations and penalties but has now reached an agreement in which it agrees to abate the cited hazards.”168 The company has been cited 12 times for similar violations at other locations.169

PROBLEM-SOLVING APPLICATION CASE 

Does Forever 21 Foster Positivity?

291Positive Organizational Behavior CHAPTER 7

• Two recent lawsuits involve LGBTQ issues. Mickael Louis claimed extensive harassment that occurred while he was working at Forever 21 in Brooklyn. One boss said, “I love muscular black guys like you,” and another showed him “cell phone videos of him having sex with men.” Louis’s boss “constantly addressed Louis as ‘Honey,’ [and] an- other manager—Andy Liu—allegedly came up with a different offensive nickname—‘Nutella.’” Liu also told Louis, “Look out for the black people, they are going to steal.”170 The second case pertains to Alexia Daskalakis, 22, formerly known as Anthony Daskalakis. Daskalakis claimed her problem began when she began transitioning to a woman. Her boss allegedly started treating her with “‘increasing contempt’—yelling at her in front of coworkers and calling her ‘useless.’” Another manager called her a “hot mess.” She was ultimately fired.171

• A former employee sued Forever 21 because it al- legedly requires “employees to be on call for shifts but does not compensate them for it.” The em- ployee said, “These on-call shifts are no different than regular shifts, and Forever 21 has misclassi- fied them in order to avoid paying reporting time in accordance with [California] law.” One expert sug- gested that the company “appears to be in direct violation of California law, which requires that em- ployees be compensated with ‘reporting time pay’ (which is equivalent to their regular hourly rate) for being required to report to work but being asked to work less than half the actual shift.”172

• The company was sued by other companies and labels such as H&M, Diane von Furstenberg, Anna Sui, and Anthropologie (50 in all) for copying their clothes. H&M, for example, sued for “copyright in- fringement, false designation of origin and unfair competition.” H&M claims Forever 21 copied its Beach Please tote bag. Von Furstenberg, Sui, and Anthropologie won settlements.173

WHAT ARE EMPLOYEES SAYING ABOUT THE COMPANY? Here is what employees wrote on Glassdoor and Indeed.com in 2016:174

Pros: “Great management staff, everyone really tries to do the right thing.” “Everything is always new and interesting, there is never a dull moment!” “Flexible schedule and fast environment.” “First dibs on new clothes.” “I enjoy all my coworkers; it isn’t hard for me to get along with people.”

Cons: “Zero support or direction from corporate and district managers, technology lacks compared to other stores and sales suffer.” “It is difficult to attain a good work–life balance with consistent overnight shifts

and last minute schedule.” “No structure and no recognition.” “Ugly acting people. Everyone is misera- ble from the customers to the employees. . . . Place is always messy.” “The management at this job, for the most part, is not the best. They don’t always treat ev- eryone fairly, including each other.”

APPLY THE 3-STEP PROBLEM- SOLVING APPROACH TO OB Step 1: Define the problem.

A. Look first at the Outcomes box of the Organizing Framework in Figure 7.4 to help identify the important problem(s) in this case. Remember that a problem is a gap between a desired and a current state. State your problem as a gap, and be sure to consider all three levels. If more than one desired outcome is not being accomplished, decide which one is most important and focus on it for steps 2 and 3.

B. Cases have protagonists (key players), and problems are generally viewed from a particular protagonist’s perspective. Identify the perspective from which you’re defining the problem—is it that of the Changs, employees, or other labels and retailers? 

C. Use details in the case to identify the key problem. Don’t assume, infer, or create problems that are not included in the case. 

D. To refine your choice, ask yourself, Why is this a problem? Explaining why helps refine and focus your thinking. Focus on topics in the current chapter, because we generally select cases that illustrate concepts in the current chapter.

Step 2: Identify causes of the problem by using ma- terial from this chapter, summarized in the Organizing Framework shown in Figure 7.4. Causes will appear in either the Inputs box or the Processes box.

A. Start by looking at Figure 7.4 to identify which person factors, if any, are most likely causes of the defined problem. For each cause, ask, Why is this a cause of the problem? Asking why multiple times is more likely to lead you to root causes of the problem.

B. Follow the same process for the situation factors.

C. Now consider the Processes box shown in Figure 7.4. For any concept that might be a cause, ask yourself, Why is this a cause? Again, do this for several iterations to arrive at root causes.

D. To check the accuracy or appropriateness of the causes, map them onto the defined problem.

292 PART 1 Individual Behavior

B. You may find potential solutions in the OB in Action boxes and Applying OB boxes within this chapter. These features provide insights into what other individuals or companies are doing in relationship to the topic at hand.

C. Create an action plan for implementing your recommendations.

Step 3: Make your recommendations for solving the problem. Consider whether you want to resolve it, solve it, or dissolve it (see Section 1.5). Which recom- mendation is desirable and feasible?

A. Given the causes identified in Step 2, what are your best recommendations? Use the content in Chapter 7 or one of the earlier chapters to propose a solution.

LEGAL/ETHICAL CHALLENGE

Does GPS Tracking of Employee Actions Foster a Positive Work Environment? 

More companies are using GPS apps to track the whereabouts of their employees. Companies claim such devices increase productivity and help locate em- ployees in times of a crisis, such as the 2016 terrorist attack in Paris.175

For example, the city of Aurora, Colorado, installed tracking devices inside its sweepers and snowplows “to make sure they’re being used as taxpayers in- tended. Management claims a 15 percent increase in productivity by having the tracking devices in the ve- hicles.”176 Driver Maria Coleman said, “It’s Big Brother. It’s watching you, making sure you do what you’re sup- posed to do, but if you are doing what you’re sup- posed to be doing, then you shouldn’t have a problem.”

Others think tracking devices are a violation of pri- vacy and don’t foster a positive, trusting climate. Offi- cials at Wyckoff Heights Medical Center in Brooklyn, for instance, required nurses to wear tracking devices in order to improve patient care. Christine Terranova of the New York State Nurses Association doesn’t like the devices. “These badges are worn every place they [the nurses] go,” she said. “If they take their break, if they go to the bathroom, it reads out on a computer- generated real-time screen and it’s logged.” The nurses filed a grievance about wearing the sensors and lost in arbitration.177

The practice of tracking is now heading to the courts. Myrna Arias, a former sales executive for money-transfer company Intermex Wire Transfer, sued the company after she was fired for failing to use a Xora app that contained a global positioning system function that tracked the location of the person pos- sessing the smartphone on which it was installed.

Arias’s boss, John Stubits, admitted that she would be tracked both on and off the clock. He “bragged that

he knew how fast she was driving at specific moments ever since she had installed the app on her phone.”178  Arias agreed to use the app during work hours but thought it was an invasion of privacy during nonwork hours. Stubits “told Arias she was required to keep her phone on 24/7 to answer client calls.” Arias decided to remove “the app to protect her privacy and was scolded by Stubits. A few weeks later, Intermex fired her.”179

What Would You Do?

What would you do if you were the CEO of Intermex and in charge of deciding what do about the Arias case and the use of tracking employees?

1. I appreciate the value of people flourishing at work, but this is a sales context and the company needs to be responsive to customer issues 24/7. I thus would fight the lawsuit and keep using the tracking device. Tracking employees during off-hours is not an invasion of privacy.

2. People won’t flourish if the company doesn’t change its ways. I would settle the lawsuit but continue to monitor employees only during work hours. It’s an invasion of privacy to track people when they are not at work.

3. Settle the lawsuit and continue to track employees 24/7. I would also make all current and new employees sign a waiver indicating that it is a job requirement to use the tracking device 24/7. People can leave if they don’t want to abide by the policy.

4. Invent other options.

Groups

pa rt

t w

o

8 Major Topics I’ll Learn and Questions I Should Be Able to Answer

8.1 Group Characteristics MAJOR QUESTION: How can knowledge of groups and their key characteristics make me more successful?

8.2 The Group Development Process MAJOR QUESTION: How can understanding the group development process make me more effective at school and work?

8.3 Teams and the Power of Common Purpose MAJOR QUESTION: What are the characteristics of effective team players, team types, and interdependence, and how can these improve my performance in teams?

8.4 Trust Building and Repair—Essential Tools for Success MAJOR QUESTION: How can I build and repair trust in ways that make me more effective at school, work, and home?

8.5 Keys to Team Effectiveness MAJOR QUESTION: What are the keys to effective teams, and how can I apply this knowledge to give me an advantage?

How Can Working with Others Increase Everybody’s Performance?

GROUPS AND TEAMS

Figure 8.1 summarizes what you will learn in this chapter. The main focus is on groups and teams and associated processes within the Organizing Framework. You’ll see that group and team dynamics affect outcomes across all levels of OB. For instance, groups and teams powerfully affect the individual-level outcomes of their members such as task performance, work attitudes, turnover, flourishing, and cre- ativity. Groups and teams similarly affect their own collective outcomes, such as group/team performance, group satisfaction, and group cohesion and conflict. Fi- nally, because many organizations consist of teams, they also affect organization- level outcomes like financial performance, organizational performance, customer satisfaction, and innovation. 

295

FIGURE 8.1 ORGANIZING FRAMEWORK FOR UNDERSTANDING AND APPLYING OB

© 2014 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors.

INPUTS PROCESSES OUTCOMES

Person Factors Situation Factors

Individual Level Group/Team Level • Group/team dynamics Organizational Level

Individual Level • Task performance • Work attitudes • Turnover • Career outcomes • Creativity Group/Team Level • Group/team performance • Group satisfaction • Group cohesion and conflict Organizational Level • Accounting/financial

performance • Customer satisfaction • Innovation

In addition to being responsible for important outcomes, such as rescuing the injured or even saving their lives, military medical teams illustrate many team concepts covered in this chapter. These medical teams, for instance, serve both organizational and individual functions. They complete complex tasks that individuals alone simply cannot, and they also confirm individual team member’s self-esteem and sense of identity. The members of military medical teams fulfill various task and maintenance roles essential to effective team dynamics and functioning, such as information seeker and encourager, respectively. Fundamental to all of this are the teamwork competencies of the team members, such as possessing and applying their relevant knowledge and skills in constructive ways for the benefit of the soldiers they save and the overall team. SOURCE: Sgt. Daniel Schroeder/U.S. Army

Winning at Work Using Team Charters to Boost Effectiveness

What’s Ahead in This Chapter We begin Part Two of this book with a discussion of groups and teams. Your performance at work and school improves when you understand the differences be- tween formal and informal groups, because the two have different functions, roles, norms, and dynamics. Next we describe the group and team development pro- cess, and then we differentiate groups from teams and explore important team concepts, such as different types of teams and the nature of their interdependence. A number of key team characteristics also are explored, including team competencies and teamwork. The value of trust is covered next, because trust is a critical element for group and team functioning. We close by exploring facilitators for team effectiveness—common purpose, composition, collaboration, and rewards.

4. Boundaries: Boundaries identify the values, such as timely and quality work, to which team members will commit. Many effective teams also describe the legiti- mate activities of the team, which are details about what the team will and will not do and what members will and will not do in the name of the team. It also is important to agree to and describe the key stakehold- ers affected by the team’s activities. This clarifies who the team does and does not serve.

5. Operating guidelines: Describe the team structure and processes, including how leadership and other roles will function, how decisions will be made, how work will be allocated, and how members will communicate with each other and with those outside the team. It also can be very helpful to describe how conflict will be managed, both processes and consequences.

6. Performance norms and consequences: Team research- ers have shown that effective teams often outline the performance expectations, including: how team and member performance will be assessed; how members are expected to interact with each other; how dysfunc- tional behaviors will be managed; how team members will be disciplined for not adhering to team norms; the process for terminating a member from the team; ex- pectations for team meetings; expectations for member contributions to team projects; consequences for work that is late or of poor quality; how great for team proj- ects will be allocated to individual team members.2

7. Charter endorsement: Every team member should sign an endorsement signifying commitment to the ele- ments of the charter.

When working in teams, most students and employees hurry into the task at hand. While this works sometimes, social scientists and OB professionals have identified a better approach. They recommend that individuals in the team create team charters  that detail members’ mutual expectations about how the team will operate, allocate resources, resolve conflict, and meet its commitments.1 This process may include identifying member strengths, setting goals, agreeing on processes for communication and decision making, and deciding how to measure and use contributions from members.

In OB concept the situation always matters. The same is true for teams. The implication is that every team is com- prised of unique individuals and operates within a particu- lar context. This means that each team will be confronted with its own opportunities and challenges. It is during the team charter process that team members are encouraged to anticipate the opportunities, needs, and challenges of the team. For instance, the team charter process provide the chance to determine and agree upon expectations for the team and its members. Creating charters also is a way to anticipate and then avoid and overcome potential and consequential conflicts.

1. Mission statement: Like organization mission state- ments, team charter mission statements describe why a team exists—its overarching purpose. Be careful not to describe this in terms of a goal, such as get a good grade. Missions focus on and articulate a higher pur- pose. For example, the American Humane Society’s is: “Celebrating animals, confronting cruelty.”

2. Team vision: Vision statements are forward-looking and describe what the team looks like when functioning at its best. A vision has more detail than a mission statement and describes how its actions and deliverables (products and services) affect specific outcomes and stakeholders, such as other team members, customers, professors, other students and coworkers, and suppliers.

3. Team identity: It helps to create a team name and per- haps a logo or to help signify membership. These can serve as important ways for team members to connect to the team and to distinguish the team and its mem- bers from other individuals and teams. Think of the names and mascots of sports teams and the functions they serve. It can be helpful to use the same elements in your own teams at school and work. Team rosters including each member’s name, email address, phone number, and schedule can make communicating and planning teamwork much more efficient. This task becomes even more useful if each member’s team- related strengths and responsibilities are included.

296

297Groups and Teams CHAPTER 8

Drawing from the field of sociology, we define a group  as (1) two or more freely interacting individuals who (2) share norms and (3) goals and (4) have a common identity. These criteria are illustrated in Figure 8.2. Think of the various groups to which you belong. Does each group satisfy the four criteria in our definition?

A group is different from a crowd or organization. Here is how organizational psychologist E. H. Schein helps make the distinctions clear:

The size of a group is . . . limited by the possibilities of mutual interaction and mutual awareness. Mere aggregates of people do not fit this definition [of a group] because they do not interact and do not perceive themselves to be a group even if they are aware of each other as, for instance, a crowd on a street corner watching some event. A total department, a union, or a whole organization would not be a group in spite of thinking of themselves as “we,” because they generally do not all interact and are not all aware of each other. However, work teams, committees, subparts of departments, cliques, and various other informal associations among organizational members would fit this definition of a group.3

The size of a group is thus limited by the potential for mutual interaction and mutual awareness.4 People form groups for many reasons. Most fundamental is that groups usu- ally accomplish more than individuals. It seems, for instance, that simply interacting with others improves both individual and team accuracy.

The performance benefits increase further still if the team receives feedback that de- scribes which member’s approach is most effective. The rationale is that the team be- comes more efficient, focuses on the best approach, and then applies and improves it, which raises performance even more.5

How do we differentiate between formal and informal groups?

M A J O R Q U E S T I O N

How can knowledge of groups and their key characteristics make me more successful?

T H E B I G G E R P I C T U R E

Groups can be formal or informal, and they serve multiple functions. As a group member you

can play many different roles. Group roles and norms are the means by which expectations

are communicated to groups and their members. They are powerful forms of social control

that influence group and member behavior. They also influence a number of important out-

comes across the levels in the Organizing Framework.

8.1 GROUP CHARACTERISTICS

1 Two or more

freely interacting individuals

2 Collective

norms

3 Collective

goals

4 Common identity

FIGURE 8.2 FOUR CRITERIA OF A GROUP

298 PART 2 Groups

Formal and Informal Groups Individuals join or are assigned to groups for various purposes. A formal group  is as- signed by an organization or its managers to accomplish specific goals. Such groups often have labels: work group, team, committee, or task force. An informal group  exists when the members’ overriding purpose in getting together is friendship or a com- mon interest.6 Formal and informal groups often overlap, such as when a team of ana- lysts plays tennis after work.

New Types and Functions of Informal Groups In an era of job hopping, reorga- nizations, and mass layoffs, friendships forged at work often outlast a particular job or employer.  For example, numerous successful companies—McKinsey & Co., Ernst & Young, and SAP—have developed and maintained corporate alumni groups. Instead of parting forever with former employees, organizations are increasingly using them as sources of new business, referrals for new job candidates, and even boomerang talent (former employees who eventually return to the firm).7 

Functions of Formal Groups Formal groups fulfill two basic functions: organiza- tional and individual (see Table 8.1). Complex combinations of these functions can be found in formal groups at any given time.

TAKE-AWAY APPLICATION

Understanding Individual and Organizational Functions of Groups

1. Think of a formal group in which you’re a member.

2. Describe how being a member of that group fulfills at least three of the five indi- vidual functions listed in Table 8.1. Be specific and use concrete examples.

3. Now describe in detail how the team fulfills at least two of the organizational functions.

TABLE 8.1 FORMAL GROUPS FULFILL ORGANIZATIONAL AND INDIVIDUAL FUNCTIONS

Organizational Functions Individual Functions

1. Accomplish complex, interdependent tasks that are beyond the capabilities of individuals.

1. Satisfy the individual’s need for affiliation.

2. Generate new or creative ideas and solutions. 2. Develop, enhance, and confirm the individual’s self-esteem and sense of identity.

3. Coordinate interdepartmental efforts. 3. Give individuals an opportunity to test and share their perceptions of social reality.

4. Provide a problem-solving mechanism for complex problems requiring varied information and assessments.

4. Reduce the individual’s anxieties and feelings of insecurity and powerlessness.

5. Implement complex decisions. 5. Provide a problem-solving mechanism for personal and interpersonal problems.

6. Socialize and train newcomers.

SOURCE: Adapted from E. H. Schein, Organizational Psychology, 3rd ed. (Englewood Cliffs, NJ: Prentice-Hall, 1980), 149–151.

299Groups and Teams CHAPTER 8

Law firm Baker Donelson highly values community service and has doubled its number of pro bono hours each year since 2008. The firm’s attorneys provided 20,000 hours of free legal assistance (worth over $22.5 million) in 2014 alone.8 To formalize their commitment to such work, they appointed a pro bono shareholder and created a pro bono committee.9 Not only does this committee show the firm’s alignment of cultural values and norms, but it also illustrates both the organiza- tional and individual functions of formal groups.

Specifically, the committee helps coordinate pro bono work across the many offices and practice areas of the firm (an organizational function). And free ser- vices support Baker Donelson’s organizational values and goals of being a good citizen in the communities and increasing attorney satisfaction (also organizational functions).

In addition, realizing opportunities to provide legal assistance to people, orga- nizations, and causes that attorneys personally value can fulfill individual func- tions, such as confirming an attorney’s sense of identity as a caring individual, building strong work relationships, and living according to his or her values.

YOUR THOUGHTS?

1. What do you think are the three greatest benefits to the firm of its pro bono work? Try to rank them in value.

2. Its pro bono work costs the firm tens of millions of dollars each year. How could this work lead to more paid business?

3. Most law firms do some amount of pro bono work. Why do you think Baker Donelson chooses to do so much? What difference does it make in terms of the firm’s competitiveness?

Baker Donelson Gives It Away to Make a Difference OB in Action

The pro bono efforts of law firm Baker Donelson, detailed in the OB in Action box, illustrate the individual and organizational functions of formal groups. 

Next, let’s learn about roles and norms, two of the most powerful influences on indi- vidual behavior in groups. 

Roles and Norms: The Social Building Blocks of Group and Organizational Behavior Groups transform individuals into functioning organizational members through subtle yet powerful social forces. These social forces, in effect, turn “I” into “we” and “me” into “us.” Group influence weaves individuals into the organization’s social fabric by com- municating and enforcing both role expectations and norms. That is, group members positively reinforce those who adhere to roles and norms with friendship and acceptance. However, nonconformists experience criticism and even ostracism or rejection by group members. Anyone who has experienced the “silent treatment” from a group of friends knows what a potent social weapon ostracism can be. Let’s look at how roles and norms develop and why they are enforced.

300 PART 2 Groups

TABLE 8.2 TASK AND MAINTENANCE ROLES

Task Roles Description

Initiator Suggests new goals or ideas

Information seeker/giver Clarifies key issues

Opinion seeker/giver Clarifies pertinent values

Elaborator Promotes greater understanding through examples or exploration of implications

Coordinator Pulls together ideas and suggestions

Orienter Keeps group headed toward its stated goal(s)

Evaluator Tests group’s accomplishments with various criteria such as logic and practicality

Energizer Prods group to move along or to accomplish more

Procedural technician Performs routine duties (handing out materials or rearranging seats)

Recorder Performs a “group memory” function by documenting discussion and outcomes

Maintenance Roles Description

Encourager Fosters group solidarity by accepting and praising various points of view

Harmonizer Mediates conflict through reconciliation or humor

Compromiser Helps resolve conflict by meeting others halfway

Gatekeeper Encourages all group members to participate

Standard setter Evaluates the quality of group processes

Commentator Records and comments on group processes/dynamics

Follower Serves as a passive audience

SOURCE: Adapted from discussion in K. D. Benne and P. Sheats, “Functional Roles of Group Members,” Journal of Social Issues, Spring 1948, 41–49.

What Are Roles and Why Do They Matter? A role  is a set of expected behav- iors for a particular position, and a group role  is a set of expected behaviors for members of the group as a whole.10 Each role you play is defined in part by the expectations of that role. As a student, you are expected to be motivated to learn, conscientious, participative, and attentive. Professors are expected to be knowledge- able, prepared, and genuinely interested in student learning. Sociologists view roles and their associated expectations as a fundamental basis of human interaction and experience.

Two types of roles are particularly important—task and maintenance. Effective groups ensure that both are being fulfilled (see Table 8.2). Task roles  enable the work group to define, clarify, and pursue a common purpose, and maintenance roles  foster supportive and constructive interpersonal relationships. Task roles keep the

301Groups and Teams CHAPTER 8

TAKE-AWAY APPLICATION

Applying My Knowledge of Task and Maintenance Roles

1. Think of a formal or informal group of which you’re a member.

2. Describe the way at least three task roles are fulfilled, using examples of specific people and behaviors.

3. Do the same for at least three maintenance roles.

(Note: If necessary use more than one group to which you belong, but be sure to de- scribe at least three task and three maintenance roles.)

group on track, while maintenance roles keep the group together. Members can play more than one role at a time, or over time.

A project team member is performing a task function when he or she says at a meeting, “What is the real issue here? We don’t we seem to be get- ting anywhere.” Another individual who says, “Let’s hear from those who oppose this plan,” is performing a maintenance function. The group’s leader or any of its members can play any of the task and maintenance roles in combination or in sequence.

The task and maintenance roles listed in Table 8.2 can serve as a handy checklist for managers and group leaders who wish to ensure group development (discussed in the next sec- tion of this chapter) and effectiveness (the last section of this chapter). 

Leaders can further ensure that roles are being fulfilled by clarifying specifically what is expected of employees in the group. In 2009 Sallie Kraw- check, whom Fortune magazine had named one of the most powerful women on Wall Street and in business, took over as president of the Global Wealth and Investment Management group at Bank of America (BoA) and was quick to fulfill both task and maintenance roles.

At the then-embattled bank, Krawcheck quickly tended to task roles by appointing eight executives to oversee various operations within the group, such as heading the US brokerage force and private wealth management. New goals were set, and she also worked dili- gently on the maintenance role of integrating the culture of Merrill Lynch, which BoA had just acquired at the height of the financial crisis.12

Learn about your own group role preferences by completing Self-Assessment 8.1. This knowledge can help you understand why you might have been more or less satis- fied with a particular group or team of which you’ve been a member. Playing roles that don’t match your preferences is likely to be less satisfying. Furthermore, under- standing your own preferences can enable you to set yourself up to be happy and productive in future groups, because you can volunteer for or position yourself to play the roles you prefer.

Sallie Krawcheck is one of the most influential women in business. She made her name on Wall Street but is now on her fourth career, starting a digital investment platform for women called Ellevest.11 © Brad Barket/Getty Images

302 PART 2 Groups

What Are Norms and Why Do They Matter? “A norm  is an attitude, opinion, feeling, or action—shared by two or more people—that guides behavior.”13 Norms help create order and allow groups to function more efficiently because they save groups from having to figure out how to do the same things each time they meet. Norms also help groups move through the development process. Can you imagine having to establish guidelines over and over again?

Norms are more encompassing than roles, which tend to be at the individual level in the Organizing Framework and pertain to a specific job or situation. Norms, in contrast, are shared and apply to the group, team, or organization.

Although norms are typically unwritten and are seldom discussed openly, they have a powerful influence on group and organizational behavior. Like organizational culture, in- dividual and group behavior are guided in part by shared expectations and norms. For ex- ample, the 3M Co. has a norm whereby employees devote 15 percent of their time to thinking big, pursuing new ideas, or further developing something spawned from their other work. The “15 percent time” program, as it is called, was started in 1948 and sup- ports the culture of innovation 3M is known for. Google, as well as other tech companies, has implemented a similar program allowing employees to allocate 20 percent of their time to ideas and projects beyond their own jobs. It is rumored, but not confirmed, that among the projects employees developed during this time were Gmail and Google Earth.14

Norms serve many purposes and are thus reinforced by the group. Some of these reasons are listed in Table 8.3.

TABLE 8.3 WHY NORMS ARE REINFORCED

Norm Reason Example of Reinforcement

“Make our department look good in top management’s eyes.”

Group/organization survival A staff specialist vigorously defends the vital role of her department at a divisional meeting and is later complimented by her boss.

“Work hard and don’t make waves.”

Clarification of behavioral expectations

A senior manager takes a young associate aside and cautions him to be a bit more patient with coworkers who see things differently.

“Be a team player, not a star.”

Avoidance of embarrassment

A project team member is ridiculed by her peers for dominating the discussion during a progress report to top management.

“Make customer service our top priority.”

Clarification of central values

Two sales representatives are given a surprise Friday afternoon party for winning best-in-the- industry customer service awards from an industry association.

Group and Team Role Preference Scale Please be prepared to answer these questions if your instructor has assigned Self-Assessment 8.1 in Connect.

1. Does your preferred role (the one with the highest score) match your percep- tions? Justify your answer using examples of your behavior.

2. Given your preferred role, how can you be most effective in group assignments? What challenges might playing your preferred role cause for you? For your group?

3. Describe how playing your least preferred role (the one with the lowest score) has been problematic for you and one of your teams. Explain two ways you could im- prove your performance and that of your team by working on this deficiency.

SELF-ASSESSMENT 8.1

303Groups and Teams CHAPTER 8

Finally, another way to think about roles and norms is as peer pressure. Peer pressure is about expectations, and we all know how effective or problematic expectations can be. But at its root, peer pressure is simply the influence of the group on the individual, and the expectations of associated roles and norms are the means of this influence.

Applying OB

The mission of the World Health Organization (WHO) is to improve health for peo- ple around the world. This includes improving surgical outcomes. So WHO created the Safe Surgery Checklist, identifying three stages of surgery and the important tasks associated with each. The aim is to “minimize the most common and avoid- able risks endangering the lives and well-being of surgical patients.”15 The check- list recommends that a surgery coordinator (a specific task role) be assigned to ensure that each task is complete before the surgical team moves to the next stage.16

Stage 1—(Sign In) Before Administering Anesthesia: Confirm patient identity, site, procedure, and consent; mark the site of the surgery; perform anesthesia safety check; turn pulse oximeter on.

Stage 2—(Time Out) Before Incision: Confirm all team members have introduced themselves by name and role; surgeon, anesthesiologist, and nurse confirm pa- tient, procedure, and site; surgeon reviews critical steps and potential challenges; anesthesiologist checks for potential problems; nursing team reviews that all equipment and personnel are in place. Confirm appropriate medications have been administered.

Stage 3—(Sign Out) Before Patient Leaves Operating Room: Nurse verbally con- firms with the team—name of procedure has been recorded; instrument, sponge, and needle counts are correct; specimen is labeled and includes patient’s name; surgeon, anesthesiologist, and nurse review post-op concerns, medications, and pain management.

Health Norms—The Safe Surgery Checklist

Norms can emerge on their own over time. For instance, think of the group of friends you hung out with on Friday night. What were some of the unspoken norms of behavior? Were these norms the result of discussion and explicit agreement, or did they just happen?

In contrast, norms can also be purposefully created, which is what we advocate. Why leave things to chance, especially at work, when you can directly influence them for the better? The World Health Organization (WHO) sets norms, as described in the Applying OB box. While these recommendations are written, they are not formally required, which would make them actual rules.

304 PART 2 Groups

M A J O R Q U E S T I O N

How can understanding the group development process make me more effective at school and work?

T H E B I G G E R P I C T U R E

You’ll find working in groups and teams much easier when you recognize that they often fol-

low a development process. One such process has five stages, and the other is called punctu-

ated equilibrium. We explore both and help you understand the problems and benefits

common to groups and teams as they evolve. Your application of this knowledge will enable

you to more effectively manage individual- and group-level outcomes in the Organizing

Framework and perform more successfully in work and school groups.

8.2 THE GROUP DEVELOPMENT PROCESS

At work and school, groups and teams go through a development process. Sometimes this development is like the life cycle of products in marketing or like human development in biology. That is, it consists of stages of a specific number, sequence, length, and na- ture.17 Other kinds of groups form, progress in a stable manner for a while, but then re- spond to an event by radically changing their approach. We’ll discuss models of both development processes in this chapter, beginning with the most popular—Tuckman’s five-stage model (see Figure 8.3).18

Tuckman’s Five-Stage Model of Group Development Tuckman’s five-stage model of group development—forming, storming, norming, per- forming, adjourning—has great practical appeal because it is easy to remember and ap- ply. Notice in the top part of Figure 8.3 how individuals give up an increasing amount of their independence as a group develops. The lower box of the figure also describes some of the issues faced by individual members and the larger group as it develops.

TAKE-AWAY APPLICATION

Applying My Knowledge of Group Development

Use the information in Figure 8.3 to understand and explain your experiences of group development.

1. Think of a group to which you belong, such as a work group, athletic team, fraternity/sorority, or class project team.

2. Identify the stage of development that group is in today.

3. Compare the individual and group issues described in Figure 8.3 to what you and the group you identified in No. 1 are actually experiencing.

4. Repeat this application for a group that no longer exists—a disbanded project team from work or a project team from last term are good choices. Then try to trace any issues back to the various stages of development in the model.

The five stages are not necessarily of the same duration or intensity. For instance, the storming stage may be practically nonexistent or painfully long, depending on the goal clarity, commitment, and maturity of the members.

305Groups and Teams CHAPTER 8

Stage 1: Forming During the ice-breaking forming stage, group members tend to be uncertain and anxious about such unknowns as their roles, the people in charge, and the group’s goals. Mutual trust is low, and there is a good deal of holding back to see who takes charge and how.

Some research shows that conflict among group members is actually beneficial dur- ing this stage. For instance, early conflict in product development teams can boost cre- ativity.19 However, the results can also be quite different. For example, in the life-and-death situations sometimes faced by surgical teams and airline cockpit crews, the uncertainty inherent in the early stages of development (forming and storming) can be dangerous. 

Stage 2: Storming The storming stage is a time of testing. Individuals test the leader’s policies and assumptions as they try to decide how they fit into the power structure. Sub- groups may form and resist the current direction of a leader or another subgroup. In fact, some management experts say the reason many new CEOs don’t survive is that they never get beyond the storming stage. For instance, Ron Johnson joined JCPenney after leaving Apple, and he never convinced employees and top managers to accept his radical rebranding of the aging retailer. As CEO he fired thousands of employees, and much of the old guard, but many of those who remained resisted his plan, as did the board of directors.20 Marissa Mayer has had a similar experience at Yahoo. She took the helm of a struggling company, changed strategies, fired thousands, and never really gained support from important stake- holders, such as investors, industry partners, and the remaining employees.21 Many groups stall in Stage 2 because of the way the use of power and politics can erupt into open rebellion.

Stage 3: Norming Groups that make it through Stage 2 generally do so because a respected member, other than the leader, challenges the group to resolve its power strug- gles so work can be accomplished. Questions about authority and power are best resolved through unemotional, matter-of-fact group discussion. A feeling of team spirit is

FIGURE 8.3 TUCKMAN’S FIVE-STAGE MODEL OF GROUP DEVELOPMENT

Te am

E �

ec ti

ve n

es s

Adjourning

Independence

Dependence/ Interdependence

Return to Independence

Performing

Norming

Storming

Forming

Individual issues

“How do I fit in?”

“What’s my role here?”

“What do the others expect

me to do?”

“How can I best perform

my role?”

“What’s next?”

Group Issues

“Why are we here?”

“Why are we fighting over

who is in charge and who does

what?”

“Can we agree on roles and

work as a team?”

“Can we do the job

properly?”

“Can we help members transition

out?”

Time

306 PART 2 Groups

sometimes experienced during this stage because members believe they have found their proper roles. Group cohesiveness,  defined as the “we feeling” that binds members of a group together, is the principal by-product of Stage 3.22 

Stage 4: Performing Activity during this vital stage is focused on solving task problems, as con- tributors get their work done without hampering oth- ers. This stage is often characterized by a climate of open communication, strong cooperation, and lots of helping behavior. Conflicts and job boundary dis- putes are handled constructively and efficiently. Co- hesiveness and personal commitment to group goals help the group achieve more than could any one in- dividual acting alone.

Stage 5: Adjourning The group’s work is done; it is time to move on to other things. The return to inde- pendence can be eased by rituals such as parties and award ceremonies celebrating the end and new begin- nings. During the adjourning stage, leaders need to em- phasize valuable lessons learned.

Punctuated Equilibrium In contrast to the discrete stages of Tuckman’s model, some groups follow a  form of development called punctuated equilibrium.  Groups establish periods of stable functioning until an event causes a dra- matic change in norms, roles, and/or objectives. The group then establishes and maintains new norms of functioning, returning to equilibrium (see Figure 8.4).  Extreme examples of punctuated equilib- rium often occur because of disruptive technologies, such as Apple’s introduction of iTunes. This innova- tion caused all players in the music industry to radi- cally change their approaches from digital to streaming and from purchasing entire albums to buying individ- ual songs and subscriptions. Walmart’s low-price ap- proach to big-box retailing also revolutionized an industry. In such scenarios companies and teams that can adapt will realize tremen- dous new opportunities, but those that don’t often find themselves obsolete and go out of business. This phenomenon plays out at all levels of OB. Many individual’s careers have been ignited due to punctuated equilibrium. This means that punctuated equilibrium at the organizational level drives significant change, development, and opportunity at the group and individual levels too. Apply your new knowledge of OB to be sure your career is one of them.

Target CEO Brian Cornell made dramatic changes to the executive suite when he took the helm. In the midst of struggling performance he removed the chief stores officer and head merchant. He then hired a new chief information officer and made the former CFO the chief operations officer. These staffing moves were intended not only to provide new leadership, but also to align the senior leadership team and boost its performance. Another way to look at this is that perhaps the previous team had “normed” but just wasn’t performing. So Cornell started over with a largely new group. © Andrew Burton/Getty Images

FIGURE 8.4 PUNCTUATED EQUILIBRIUM

Time

Abrupt change

C h

a n

g e

Abrupt change

307Groups and Teams CHAPTER 8

M A J O R Q U E S T I O N

What are the characteristics of effective team players, team types, and interdependence, and how can these improve my performance in teams?

T H E B I G G E R P I C T U R E

When you better understand the difference between groups and teams, you’ll be well equipped

to perform better in both. You’ll find practical tips in our discussion of critical teamwork compe-

tencies, along with a description of various types of teams. This section concludes with a discus-

sion of team interdependence, a characteristic that is fundamental to the functioning of teams.

8.3 TEAMS AND THE POWER OF COMMON PURPOSE

A team  is a small number of people who are committed to a common purpose, per- formance goals, and approach for which they hold themselves collectively account- able. Besides being a central component of the Organizing Framework, teams are a cornerstone of work life. General Electric CEO Jeffrey Immelt offers this blunt overview: 

You lead today by building teams and placing others first. It’s not about you.23

This means practically all employees need to develop their skills related to being good team players and building effective teams.  It also means that in today’s team-focused work environment, organizations need leaders who are adept at teamwork themselves and can cultivate the level of trust necessary to foster constructive teamwork. Employees re- ported that the three traits of their most admired bosses were trust in employees, honesty/ authenticity, and great team-building skills.24 To help you be more effective in the team context, let’s begin by differentiating groups and teams.

A Team Is More than Just a Group Management consultants at McKinsey & Co. say it is a mistake to use the terms group and team interchangeably. After studying many different kinds of teams—from athletic to corporate to military—they concluded that successful teams tend to take on a life of their own. A group becomes a team when it meets the criteria in Table 8.4.

Bob Lane, the former CEO of Deere & Co., emphasized the purpose and effective- ness of teams when he talked about his company being a team, not a family. A reporter

TABLE 8.4 CHARACTERISTICS OF TEAMS

A Group Becomes a Team When . . .

Leadership becomes a shared activity.

Accountability shifts from strictly individual to both individual and collective.

The group develops its own purpose or mission.

Problem solving becomes a way of life, not a part-time activity.

Effectiveness is measured by the group’s collective outcomes and products.

SOURCE: R. Rico, M. Sánchez-Manzanares, F. Gil, and C. Gibson, “Team Implicit Coordination Processes: A Team Knowledge-Based Approach,” Academy of Management Review, January 2008, 163–184.

308 PART 2 Groups

summarized his words this way: “While family members who don’t pull their weight may not be welcome at the Thanksgiving dinner table, they remain members of the family. But if you’re not pulling your weight here, I’m sorry, you’re not part of the team.”25 Lane clearly has strong views on the difference between groups and teams.

Despite the differences, both groups and teams can perform at a high level. Think of your experiences. As you know, well-functioning groups or teams can be incredibly ef- fective in achieving goals and quite fulfilling for members. You may also know that when not working well they can be a tremendous waste of time. Some experts describe team effectiveness in terms of maturity.

Mature groups are more effective. Completing Self-Assessment 8.2 will help you better understand the maturity level of a current or past team of which you’re a member. 

Is This a Mature Work Group or a Team? Please be prepared to answer these questions if your instructor has assigned Self-Assessment 8.2 in Connect.

1. Does your evaluation help explain why the group or team was successful or not? Explain.

2. Was (or is) there anything you could have done (or can do) to increase the maturity of this group? Explain.

3. How will this evaluation help you be a more effective group member or leader in the future?

SELF-ASSESSMENT 8.2

The following OB in Action box describes how important building an effective team is to leading Internet entrepreneur Kevin Ryan. Ryan clearly acknowledges that teams take time to develop. But he also is clear that he expects managers to control the process. 

Kevin Ryan knows a bit about building successful teams. He’s done it at a number of companies, such as DoubleClick, Gilt Groupe, Business Insider, Zola, and most recently Kontor. His leadership style em- phasizes talent management, which he sees as the No. 1 responsibility of CEOs, and rigorous perfor- mance management. Both converge in his expecta- tions of managers’ ability to build effective teams. These views are illustrated in his description of a conversation with a new manager.

Clear Expectations “Five months from now, you need to have a great team. Earlier would be better, but five months is the goal. To do that, you’ll need to spend the next month evaluating the people you have right now. I hope they’re good. But if they’re not, we’ll make changes to replace them. If

Team Building Is an Important Part of Talent Management26

OB in Action

© Michael Nagle/Getty Images

309Groups and Teams CHAPTER 8

Being a Team Player Instead of a Free Rider Teams collaborate and perform most effectively when companies develop and encourage teamwork competencies. Fair enough, but if these competencies are important, how can you measure them? Researchers have distilled five common teamwork competencies out- lined in Table 8.5. The examples listed for each suggest ways they can be measured.

Notice that all these competencies are action-oriented. This means being a team player is more than a state of mind: It’s about action!

Evaluating Teamwork Competencies There are at least two ways to use Table 8.5 and your knowledge of teamwork competencies. The first is as tools to enhance your self- awareness. The second is as a means to measure your performance and that of other members of your team. Self-Assessment 8.3 can be useful for both.

you need to promote people internally, we’ll do that. If you need to go outside, we’ll do that. You also need to make sure you retain your best people. I’m going to be really disturbed if I see that people we wanted to keep have started leav- ing your area.”

Consequences Sadly, the manager in this case didn’t build a strong team. At four months, two key positions were still open and two key individuals had left. Ryan then asked, “Tell us what we can do to help. . . . If you need us to double your recruiting resources, we’ll do that.” At six months the situation had not improved. Ryan then said, “We’re done.”

YOUR THOUGHTS?

1. What are the benefits to Kevin Ryan’s approach to team building? 2. What are the potential shortcomings? 3. Explain why you would or would not want to be a manager for Kevin Ryan.

TABLE 8.5 COMMON TEAMWORK COMPETENCIES

Competency Examples of Member Behaviors

1. Contributes to the team’s work

∙ Completed work in a timely manner ∙ Came to meetings prepared ∙ Did complete and accurate work

2. Constructively interacts with team members

∙ Communicated effectively ∙ Listened to teammates ∙ Accepted feedback

3. Keeps team on track ∙ Helped team plan and organize work ∙ Stayed aware of team members’ progress ∙ Provided constructive feedback

4. Expects high-quality work ∙ Expected team to succeed ∙ Cared that the team produced high-quality work

5. Possesses relevant knowledge, skills, and abilities (KSAs) for team’s responsibilities

∙ Possessed necessary KSAs to contribute meaningfully to the team

∙ Applied knowledge and skill to fill in as needed for other members’ roles

310 PART 2 Groups

Many of your business courses require team assignments and some require peer eval- uations. Complete Self-Assessment 8.3 to learn about your own teamwork competencies and/or to evaluate the performance of the members of one of your teams at school (for a class, sport, club, or fraternity/sorority). Knowledge of your teamwork competencies can help you determine which competencies are your strongest and those that are opportuni- ties for improvement. You can then choose to play to your strengths and/or develop your deficiencies.

Evaluate Your Team Member Effectiveness Please be prepared to answer these questions if your instructor has assigned Self-Assessment 8.3 in Connect.

1. Which competencies are your strongest (have the highest average scores)?

2. Do these scores match your own impressions of your teamwork competencies?

3. Which competency is your lowest? Describe two things you can do to further de- velop and display this competency.

4. Which competency do you feel low performers most often lack in the teams of which you’re a member?

5. Describe the pros and cons of using this tool to do peer evaluations for team as- signments in school.

Adapted from M. W. Ohland, M. L. Loughry, D. J. Woehr, L. G. Bullard, R. M. Felder, C. J. Finelli, R. A. Layton, H. R. Pomeranz, and D. G. Schmucker, “The Comprehensive Assessment of Team Member Effectiveness: Development of a Behaviorally Anchored Rating Scale for Self- and Peer Evaluation,” Academy of Management Learning & Education, 2012, 609–30. Reprinted with permission of Academy of Management.

SELF-ASSESSMENT 8.3

What Does It Mean to Be a Team Player? Understanding and exhibiting the com- petencies noted in Table 8.5 is an excellent start on becoming a team player. And while everybody has her or his own ideas of the characteristics that are most important, most people likely include the three Cs of team players:

Committed Collaborative Competent27

Think of it this way: The three Cs are the “cover charge” or the bare minimum to be considered a team player. Effective team players don’t just feel the three Cs—they display them. Think of somebody on one of your teams who clearly displays the three Cs and somebody who does not. How do the differences affect you? The team?

While there are many potential reasons some people are not team players, a particu- larly common and problematic one is social loafing. Let’s see what that means.

What Is Social Loafing? Social loafing  is the tendency for individual effort to decline as group size increases. To illustrate the point, consider a group or team of which you’re a member and ask yourself: “Is group performance less than, equal to, or greater than the sum of its parts?” Can three people working together, for example, ac- complish less than, the same as, or more than they would working separately? A study conducted more than a half-century ago found the answer to be less than. In a tug-of-war exercise, three people pulling together achieved only two-and-a-half times the average individual rate. Eight pullers achieved less than four times the individual rate.28 

Social loafing is problematic because it typically consists of more than simply slack- ing off. Free riders (loafers) not only produce low-quality work, which causes others to work harder to compensate, but they often also distract or disrupt the work of other team

311Groups and Teams CHAPTER 8

members. And they often expect the same rewards as those who do their work. You un- doubtedly have many examples from your own experiences. Given social loafing is so common and problematic, let’s look at how to guard against it.

1. Limit group size. 2. Ensure equity of effort to reduce the possibility that a member can say, “Everyone

else is goofing off, so why shouldn’t I?”  3. Hold people accountable. Don’t allow members to feel they are lost in the crowd and

can think, “Who cares?”

TAKE-AWAY APPLICATION

Guarding against Social Loafing

1. Think of a group or team situation in which one of the members was loafing.

2. Given what you just learned, what do you think was the cause of the free riding or loafing?

3. Describe in detail two things you could have done to prevent loafing from happening.

4. Describe what you can do in a future group assignment in school to avoid or reduce social loafing. Be specific.

Now let’s discuss various types of teams. Understanding the differences can make you a more effective team member and leader.

Types of Teams As the world of work becomes more complex, so too do the types of teams. We can dif- ferentiate some common ones by particular characteristics, such as:

1. Purpose of the team. 2. Duration of the team’s existence. 3. Level of member commitment.

Work Teams Work teams have a well-defined and common purpose, are more or less permanent, and require complete commitment of their members. Professional sports teams’ top priority is to win games, which they hope will also lead to higher ticket sales and more television viewers. The same teams exist from season to season, and member- ship is a full-time, all-consuming job for each player. An audit team at work is the same: It is full of auditors who work full time auditing.

Project Teams Project teams are assembled to tackle a particular problem, task, or project. Depending on their purpose, their duration can vary immensely, from one meet- ing to many years. For instance, your employer may assemble a team to brainstorm ideas for generating more business with a certain customer. This project team may be limited to only one meeting, whether virtual or face-to-face. Or a project team may be responsible not only for creating ideas for more business with that customer, but also for executing the ideas over the course of one or more years. 

Members of project teams most often divide their time between the team and their primary jobs and responsibilities. They may be from the same department, product, customer, or service area in an organization, or they may be from different functional disciplines such as finance, operations, or marketing. And as you may have already expe- rienced, any given employee may be a member of multiple project teams at one time.

312 PART 2 Groups

Cross-Functional Teams Cross-functional  teams are created with members from different disciplines within an organization, such as finance, operations, and R&D. Cross-functional teams can be used for any purpose, they can be work or project teams, and they may have a short or indefinite duration. New-product development is an area in which many organizations utilize cross-functional teams. Brian Walker, CEO of furniture maker Herman Miller, described how the company uses cross-functional teams to leverage the talents of employees in product development and boost company performance:

We’re big believers in putting teams together . . . we’re very willing to move folks around between departments. In our design process, for example, we deliberately create tension by putting together a cross-functional team that includes people from manufacturing, finance, research, ergonomics, marketing and sales. The manufacturing guys want something they know they can make easily and fits their processes. The salespeople want what their customers have been asking for. The tension comes from finding the right balance, being willing to follow those creative leaps to the new place, and convincing the organization it’s worth the risk.29

Self-Managed Teams Self-managed teams  are groups of workers who have ad- ministrative oversight over their work domains. Administrative oversight consists of ac- tivities such as planning, scheduling, monitoring, and staffing. These are normally performed by managers, but in self-managed teams employees act as their own supervisors. Self- managed teams have a defined purpose and their duration can vary, along with the level of member commitment. Cross-functional, work, and project teams can all be self-managed.

Leadership responsibilities often are shared and shift as the demands on and mem- bers of self-managed teams change.30 Outside managers and leaders maintain indirect accountability. This contrasts with the hierarchical or centralized types of management historically found in teams. The vast majority of major US companies use self-managed teams.31 The OB in Action box describes some potential benefits of self-managed teams.

Many argue, and some convincingly, that great teams don’t last. Many disas- semble because their members move on to other opportunities. One implication of this fact is that organizations and their leaders obsess too much over choos- ing the best members—chances are they will leave. However, companies W.L. Gore, Worthington Industries, Semco, and Morning Star provide insights into how to overcome this common hurdle and continually create top-perform- ing self-managed teams.

The Opposite of Chaos Some managers fear teams that are not under direct managerial control. But effective self-managed teams are not free-wheeling, un- disciplined, or chaotic. They instead are focused and more effective than many conventional teams over time. Company founder Bill Gore says, “At Gore we don’t manage people. . . . We expect people to manage themselves.”33

Self-managed teams at these companies share three characteristics:

1. Competence Rules the Day. Most employees and team members do not have job titles. However, that does not mean a lack of leadership. Everybody knows who the leaders are, and they typically are those who have “served their colleagues best, have offered the most useful ideas, and have worked the

The Art of the Self-Managing Team32 OB in Action

313Groups and Teams CHAPTER 8

Self-managed does not mean workers are simply turned loose to do their own thing. Indeed, an organization embracing self-managed teams should be prepared to undergo revolutionary changes in its management philosophy, structure, staffing and training practices, and reward systems. Managers sometimes resist self-managed teams, due to the perceived threat to their authority and job security. 

Now that you’ve learned about some common team types and their characteristics, we turn our attention to virtual teams. Virtual teams are a common and critically impor- tant type of team with unique characteristics.

Virtual Teams Virtual teams  work together over time and distance via electronic media to combine effort and achieve common goals.35 Traditional team meetings are lo- cation-specific. You and other team mem- bers are either physically present or absent. Members of virtual teams, in contrast, re- port in from different locations, different organizations, and often different time zones and countries.

Advocates say virtual teams are very f lexible and efficient because they are driven by information and skills, not by time and location. People with needed in- formation and/or skills can be team mem- bers, regardless of where or when they actually do their work.36 Nevertheless, vir- tual teams have pros and cons like every other type of team.

hardest and most effectively for the team’s success. At W.L. Gore, they say you find out if you’re a leader by calling a meeting and seeing if anyone comes.” Even assigned or explicit leaders are “transparently competence-based.”34 A strict hierarchy is followed by most emergency room teams—attending physi- cians, fellows, and finally residents.

2. Clear Goals and Expectations. Most organizations do goal setting poorly, and even those that do it well can do it better. That said, each employee at Morn- ing Star, a tomato processor, creates a “letter of understanding” with col- leagues who are most affected by his or her work. This letter explains in great detail what each person can expect of the other. It not only clarifies goals and expectations, but it also boosts goal commitment.

3. Shared Values. Effective self-managed teams are clear about what they value. Surgical teams are keenly focused on patient safety and good medical out- comes. This focus is shared by everyone on the team despite the fact that members routinely come and go.

YOUR THOUGHTS?

1. These organizations make self-managed teams look simple and effective. If this is true, why do you think more organizations don’t use them?

2. Assume you’re a founder and CEO of a company. Argue both for and against using self-managed teams in your organization.

Technology not only allows people to communicate where, when, and with whom they wish, but it also allows many people and organizations to work without offices. What are the advantages and disadvantages for you personally of telecommuting and virtual work? © Image Source/Getty Images RF

314 PART 2 Groups

Best Uses of Virtual Teams Virtual teams and distributed workers present many potential benefits: reduced real estate costs (limited or no office space); ability to lever- age diverse knowledge, skills, and experience across geography and time (you don’t have to have an SAP expert in every office); ability to share knowledge of diverse markets; and reduced commuting and travel expenses. The flexibility often afforded by virtual teams also can reduce work–life conflicts for employees, which some employers contend makes it easier for them to attract and retain talent.37 

Obstacles for Virtual Teams Virtual teams have challenges, too. It is more diffi- cult for them than for face-to-face teams to establish team cohesion, work satisfaction, trust, cooperative behavior, and commitment to team goals.38 Many of these are im- portant elements in the Organizing Framework. So virtual teams should be used with caution. It should be no surprise that building team relationships is more difficult when members are geographically distributed. This hurdle and time zone differences are challenges reported by nearly 50 percent of companies using virtual teams. Mem- bers of virtual teams also reported being unable to observe the nonverbal cues of other members and a lack of collegiality.39 These challenges apply to virtual teams more generally, as does the difficulty of leading such teams.40  When virtual teams cross country borders, cultural differences, holidays, and local laws and customs also can cause problems.

Effective Virtual Team Participation and Management We put together a collection of best practices to help focus your efforts and accelerate your success as a member or leader of a virtual team:41

1. Adapt your communications. Learn how the various remote workers function, including their preferences for e-mail, texts, and phone calls. It often is advisable to have regularly scheduled calls (via Skype). Be strategic and talk to the right people at the right times about the right topics. Don’t just blanket everybody via e-mail—focus your message. Accommodate the different time zones in a fair and consistent manner.

2. Share the love. Use your company’s intranet or other technology to keep distributed workers in the loop. Acknowledging birthdays and recognizing accomplishments are especially important for those who are not regularly in the office. Newsletters also can help and serve as a touch point and vehicle for communicating best practices and success stories.

3. Develop productive relationships with key people on the team. This may re- quire extra attention, communication, and travel, but do what it takes. Key people are the ones you can lean on and the ones who will make or break the team assignment.

4. Be a good partner. Often members of virtual teams are not direct employees of your employer but are independent contractors. Nevertheless, your success and that of your team depend on them. Treat them like true partners and not hired help. You need them and presumably they need you.

5. Be available. Managers and remote workers all need to know when people can be reached, where, and how. Let people know and make yourself available.

6. Document the work. Because of different time zones, some projects can receive at- tention around the clock, as they are handed off from one zone to the next. Doing this effectively requires that both senders and receivers clearly specify what they have completed and what they need in each transfer.

7. Provide updates. Even if you are not the boss, or your boss doesn’t ask for them, be sure to provide regular updates on your progress to the necessary team members.42

8. Select the right people. Effective virtual workers generally prefer and do well in interdependent work relationships. They also tend to be self starters and willing to

315Groups and Teams CHAPTER 8

take initiative. Such independent thought contrasts starkly with people who prefer to wait for instructions before taking action.43

9. Use your communication skills. Because so much communication is written, virtual team members must have excellent communication skills and write well in easy-to- understand and to-the-point language.

Face Time Researchers and consultants agree about one aspect of virtual teams— there is no substitute for face-to-face contact. Meeting in person is especially beneficial early in virtual team development, and team leaders are encouraged to meet even more frequently with key members.44 Face-to-face interactions can be as simple as lunch, water-cooler conversations, social events, or periodic meetings. Whatever the case, such interactions enable people to get familiar with each other and build credibility, trust, and understanding. This reduces misunderstandings and makes subsequent virtual interac- tions more efficient and effective, and it also increases job performance and reduces con- flict and intentions to quit.45

Face-to-face interactions enable people to get real-time feedback, forge meaning- ful and real connections, and get a better sense of what others actually think and feel.46 Moreover, virtual teams cannot succeed without additional and old-fashioned factors, such as effective decision making, good communication, training, a clear mission and specific objectives, effective leadership, schedules, and deadlines.47 Un- derlying many of these is one of the truly essential elements to effective teams of all types—trust. You’ll learn more about this in the next section. But first let’s explore interdependence.

Team Interdependence One of the most important aspects of teams is interdependence, or the extent to which members are dependent on each other to accomplish their work.48 We discuss two com- mon forms of interdependence—task and outcome. Task interdependence  is the de- gree to which team members depend on each other for information, materials, and other resources to complete their job tasks. The degree of task interdependence is determined by the degree of interaction between members and the amount of coordina- tion required among them. There are four basic types of task interdependence, ranked by how much team member interaction and coordination are required. The types are illus- trated in Figure 8.5.

1. Pooled. Many pharmaceutical and other sales teams illustrate pooled interdepen- dence. Each member sells a chosen drug to his or her customers, which requires little or no interaction or coordination with other representatives. At the end of the month all reps’ sales are added together to arrive at a team sales total. 

2. Sequential. Manufacturing or assembly processes are typically sequential. PCs man- ufacturing teams, for example, require that motherboards and hard drives be installed before the box can be closed and fastened.

3. Reciprocal. Hiring processes sometimes use reciprocal interdependence. Candidates are interviewed by members of HR and then separately interviewed by the hiring manager or members of that department, and the two communicate and decide to whom to make the offer.

4. Comprehensive. Product development teams often utilize comprehensive interdepen- dence. Online games, for instance, require significant back and forth between those who create the idea, write the code, test, and market the game. It isn’t just a linear or sequential process.

Outcome interdependence  is “the degree to which the outcomes of task work are measured, rewarded, and communicated at the group level so as to emphasize collective outputs rather than individual contributions.”49  Outcome

316 PART 2 Groups

Sales Team Total

Pooled Interdependence

Hiring Decision

Reciprocal Interdependence

Team Output

Comprehensive Interdependence

Team Product Output

Sequential Interdependence

Sales Rep 1

Sales Rep 2

Sales Rep 3

Dept Members

HR Dept

Manager

Game Programmer

Game Marketer

Game Story Writer

Assembly Worker 1

Assembly Worker 2

Assembly Worker 3

FIGURE 8.5 TYPES OF TEAM INTERDEPENDENCE

interdependence is determined by the extent to which team members’ objectives and rewards are aligned. 

Task interdependence provides opportunities for interaction, sharing, and coor- dination.50 The form of interdependence should match what the team requires to achieve its goals. A common mission or purpose helps a team and its members see how their own efforts and outcomes contribute to the larger department or organi- zation.51 And rewarding teamwork is likely to further enhance actual teamwork and team performance.

317Groups and Teams CHAPTER 8

M A J O R Q U E S T I O N

How can I build and repair trust in ways that make me more effective at school, work, and home?

T H E B I G G E R P I C T U R E

Trust sometimes seems like a rare commodity in today’s turbulent workplace. But you’re

about to see why it’s so important at all levels of the Organizing Framework. Moreover, in the

context of teams, trust is essential because it facilitates all interactions within and between

teams. With this understanding you’ll be empowered to apply your knowledge to build trust

and to repair it when it has been damaged or diminished.

8.4 TRUST BUILDING AND REPAIR— ESSENTIAL TOOLS FOR SUCCESS

Trust  is the willingness to be vulnerable to another person, and the belief that the other person will consider the impact of how his or her intentions and behaviors will affect you.52 We can hardly overstate the value of trust in organizational life. Only respectful treatment was rated higher as a predictor of employee job satisfaction,53 and many would see trust and respect as highly correlated.

Trust is the lubricant of interpersonal relationships within and between all organi- zational levels in the Organizing Framework, and thus it also drives performance across levels (see Figure 8.6). Lack of trust, for example, is a key factor in employee turnover. One study found that 59 percent of employees quit their jobs due to trust is- sues, which were linked to a lack of leader communication and honesty.54 Trust within groups of hospitality employees was also associated with increased motivation and performance.55

Arthur Gensler, founder of a leading global architecture and design firm, said this about trust:

Trust in business enjoys two main benefits. The first is with your clients. If they know you are honest and direct with them, they usually are willing to work through challenges with you, and they won’t hesitate to be a referral source when things go well. The second benefit is that authentic collaboration will take root within your firm. Your people can trust each other to act honorably and to fulfill their defined roles on a project assignment or company initiative according to shared company values.56

Yet these have not been good times for trust in the business world. As Richard Edelman, whose company produces the famous Trust Barometer each year, said, the sad state of trust “is directly linked to the failure of key institutions to provide answers or leadership in response to events such as the refugee crisis, data breaches, China’s stock market downturn, Ebola in west Africa, the invasion of Ukraine, the FIFA bribery

318 PART 2 Groups

scandal, VW’s manipulation of emissions data, massive corruption at Petrobras, and exchange-rate manipulation by the world’s largest banks.”57  

Given this grim commentary, and because trust is so important, we will explore ways in which to build trust and to repair it when it has been damaged. But let’s first learn about different forms of trust.

Three Forms of Trust For our purposes in OB, we discuss three particular forms of trust:

1. Contractual trust. Trust of character. Do people do what they say they are going to do? Do managers and employees make clear what they expect of one another?

2. Communication trust. Trust of disclosure. How well do people share information and tell the truth?

3. Competence trust. Trust of capability. How effectively do people meet or perform their responsibilities and acknowledge other people’s skills and abilities?58

Answering these questions provides both a good assessment of trustworthiness and a guide for building trust.

Trust Matters Percent who engage in each behavior based on trust

10

0

20

30

40

50

60

70

Re fu

se d

to b

uy

pr od

uc ts

/s er

vic es

48

Cr iti

ciz ed

co m

pa ni

es

42

Sh ar

ed n

eg at

ive

op in

io ns

26

Di sa

gr ee

d wi

th

ot he

rs

35

Pa id

m or

e th

an

wa nt

ed

20

So ld

sh ar

es

Behaviors for Distrusted Companies

12 10

0

20

30

40

50

60

70

Bo ug

ht sh

ar es

Pa id

m or

e

De fe

nd ed

co m

pa ny

Sh ar

ed p

os iti

ve

op in

io ns

o nl

in e

Re co

m m

en de

d th

em to

a fri

en d/

co lle

ag ue

Ch os

e to

b uy

pr od

uc ts

/s er

vic es

Behaviors for Trusted Companies 68

59

41 38 37

18

#1 most trusted content creators:

Friends and Family

#1 most trusted media source: Online Search

Engines

FIGURE 8.6 PERCENT OF PEOPLE WHO ENGAGE IN EACH BEHAVIOR BASED ON TRUST

SOURCE: 2016 Edelman Trust Barometer Global Report, Edelman.com, January 17, 2016, http://www.edelman.com/news/2016-edelman-trust-barometer-release/.

319Groups and Teams CHAPTER 8

TAKE-AWAY APPLICATION

Applying My Knowledge of Trust

1. Describe a person with whom you have a high level of contractual trust, then a person with whom you have a low level. What are the implications for your rela- tionship with each?

2. Think of an instance when you demonstrated communication trust by making an admission that was difficult, perhaps even costly for you, but you did it anyway. Now think of a time when somebody violated this type of trust with you. What were your reactions in each case?

3. Describe an instance when competence trust was violated, by you or somebody else. What was the result? (Hint: Group assignments in school often provide examples.)

How Much Do You Trust Another? Please be prepared to answer these questions if your instructor has assigned Self-Assessment 8.4 in Connect.

1. Which particular items in this questionnaire are most central to your idea of trust? Why?

2. Does your score accurately depict the degree to which you trust (or distrust) the target person?

3. Why do you trust (or distrust) this individual?

4. If you trust this person to a high degree, how hard was it to build that trust? Explain.

5. Given your inclination to trust others (your score on the assessment), describe three implications for your work in group assignments and project teams at school.

SELF-ASSESSMENT 8.4

Building Trust You may already believe that to get trust you must give trust. The practical application of this view, and of new knowledge we’ve gained about trust, is to act in ways that demon- strate each of the three types of trust. Doing so builds trust. You can also benefit by prac- ticing the following behaviors for building and maintaining trust:

Communication. Keep team members and employees informed by explaining poli- cies and decisions and providing accurate feedback. Be candid about your own problems and limitations. Tell the truth.59

Support. Be available and approachable. Provide help, advice, coaching, and support for team members’ ideas.

Respect. Delegation, in the form of real decision-making authority, is the most important expression of managerial respect. Delegating meaningful responsibilities to somebody shows trust in him or her. Actively listening to the ideas of others is a close second.

Fairness. Be quick to give credit and recognition to those who deserve it. Make sure all performance appraisals and evaluations are objective and impartial.

Predictability. Be consistent and predictable in your daily affairs. Keep both ex- pressed and implied promises.

Competence. Enhance your credibility by demonstrating good business sense, techni- cal ability, and professionalism.60

If trust is a matter of give and take, it will be helpful to know how trusting you are of oth- ers. Self-Assessment 8.4 can help you learn about different aspects of your interpersonal trust. Besides improving your self-awareness, knowledge of your interpersonal trust can also provide guidance for how you can more effectively build trust with others—friends, classmates, coworkers, and bosses.

320 PART 2 Groups

Repairing Trust Just as trust can be built, so can it be eroded. The violation of trust, or even the perception of it, can diminish trust and lead to distrust. As you probably know from personal experi- ence, trust is violated in many ways—sometimes deliberately and sometimes unwittingly. In any case, it is important to repair trust when it has been damaged.

Regardless of who is responsible for eroding or damaging trust, both parties need to be active in the repair of trust. Dennis and Michelle Reina studied thousands of instances of broken trust in business and developed seven steps for regaining it. Figure 8.7  illustrates their recommendations as an upward staircase, to show how individuals must work their way back from distrust, one step at a time, to finally re- gain what they have lost. This seven-step process can help whether you are the perpe- trator or the victim.

We conclude this section with an observation about trust from Lars Dalgaard, a gen- eral partner at the venture capital firm Andreesen Horowitz and the founder and former CEO of SuccessFactors, a human capital consulting firm: 

The funny thing is that you’re actually a stronger leader and more trustworthy if you’re able to be vulnerable and you’re able to show your real personality. It’s a trust multiplier, and people really will want to work for you and be on a mission together with you.61

Acknowledge what caused trust to be compromised.

Forgive yourself and others.

Let go and move on.

Trust Restored

Distrust

Allow feelings and emotions to be discussed, constructively.

Get and give support to others in the process.

Reframe the experience and shift from being a victim to taking a look at options and choices.

Take responsibility. Ask, “What did I do or not do that caused this to happen?”

2.

1.

3.

4.

5.

6.

7.

FIGURE 8.7 REINA SEVEN-STEP MODEL FOR REBUILDING TRUST

SOURCE: Adapted from D. Reina and M. Reina, Rebuilding Trust in the Workplace: Seven Steps to Renew Confidence, Commitment, and Energy (San Francisco, CA: Berrett-Koehler, 2010), 13.

321Groups and Teams CHAPTER 8

Characteristics of High-Performing Teams Current research and practice have identified the following eight attributes of high- performance teams:

1. Shared leadership—interdependence created by empowering, freeing up, and serving others.

2. Strong sense of accountability—an environment in which all team members feel as responsible as the manager for the performance of the work unit.

3. Alignment on purpose—a sense of common purpose about why the team exists and the function it serves.

4. Open communication—a climate of open and honest communication. 5 . High trust—belief that member actions and intentions focus on what’s best for the

team and its members. 6. Clear role and operational expectations—defined individual member responsibilities

and team processes. 7. Early conflict resolution—resolution of conflicts as they arise, rather than avoidance

or delay. 8. Collaboration—cooperative effort to achieve team goals.62

The 3 Cs of Effective Teams With the above characteristics in mind, you might ask: How do you build a high- performing team? The short answer is to use the three Cs. (Note: These three Cs are at the team level, in contrast to the three Cs of effective team players discussed earlier that focus on the individual or team member level.) The three Cs are:

Charters and strategies Composition Capacity

Charters and Strategies Both researchers and practitioners urge groups and teams to plan before tackling their tasks, early in the group development process (the

M A J O R Q U E S T I O N

What are the keys to effective teams, and how can I apply this knowledge to give me an advantage?

T H E B I G G E R P I C T U R E

You will thrive in team settings when you better understand the characteristics of high-

performing teams. You can use these characteristics as facilitators to function more success-

fully in group and team settings. You will also benefit from the practical suggestions,

supported by research and practice, with which we conclude the chapter, such as how to fos-

ter and reward collaboration and teamwork.

8.5 KEYS TO TEAM EFFECTIVENESS

322 PART 2 Groups

storming stage). These plans should include team charters  that describe how the team will operate, such as through processes for sharing information and deci- sion making (teamwork).63 Team charters were discussed in the Winning at Work feature at the beginning of this chapter. Teams should also create and implement team performance strategies,  deliberate plans that outline what exactly the team is to do, such as goal setting and defining particular member roles, tasks, and responsibilities.64

Composition Team composition  describes the collection of jobs, personalities, knowledge, skills, abilities, and experience levels of team members. When we think of it this way, it is no surprise that team composition can and does affect team perfor- mance. Team member characteristics should fit the responsibilities of the team if the team is to be effective. Fit facilitates effectiveness and misfit impedes it—you need the right people on your team.

Research shows that in the early stages of team development (forming and storming), teams perform better when members have a high tolerance for uncertainty (a personality trait). This same finding applies to self-managed and virtual teams, due to their relative lack of imposed direction and face-to-face communication.65 Team research also shows that teams with members who possess high levels of openness or emotional stability deal with task conflict better than those without these composition characteristics.66 Finally, in the university context, top management teams (presidents, vice presidents, and chancel- lors) who were more diverse in terms of educational and disciplinary backgrounds gener- ated more funding for research and improved school reputations.67

The bottom line: Create teams with the composition to match the desired objectives. Knowledge of OB and the Organizing Framework, in particular, can be very helpful in this regard.

Recent research on Tour de France cycling teams revealed that teams with greater diversity in tenure—with some new riders, some longtime riders, and some in between—had better team performance, measured as the number of riders finishing in Paris. What makes this finding intriguing is that diversity in terms of members’ skills, previous Tour stage wins, age, and experience had no effect on team performance!68 © Jean Catuffe/Getty Images

323Groups and Teams CHAPTER 8

Capacity Team adaptive capacity  (adaptability) is the ability to make needed changes in response to demands put on the team. It is fostered by team members who are both willing and able to adapt to achieve the team’s objectives. Described in this way, team adaptive capacity is a matter of team composition—the characteristics of indi- vidual team members. And it is an input in the Organizing Framework that influences team-level outcomes.69

Collaboration and Team Rewards Collaboration  is the act of sharing information and coordinating efforts to achieve a collective outcome. It’s safe to assume that teams whose members collaborate are more effective than those whose members don’t.70 Collaboration is what enables teams to produce more than the sum of their parts.71 Many factors can influence collaboration, including how teams are rewarded. In this final section we’ll explore how to foster col- laboration and the role rewards can play.

Collaboration—The Lifeblood of Teamwork As interdependence increases, so too does the need for and value of collaboration. Today’s business landscape, char- acterized by globalization, outsourcing, strategic partnering, and virtual teams, makes collaboration ever more important.72 That said, many things can interfere with collaboration. To help foster collaboration, we recommend the following as a starting point:

1. Communicate expectations. Clarifying roles and responsibilities for each team member is essential. Identify and communicate both individual and team accountability.

2. Set team goals. SMART goals for teams are a good place to start, but also review goals regularly as a team (weekly, monthly, or quarterly). Be sure individual roles and responsibilities align with team goals.

3. Encourage creativity. Create a safe environment where employees can take risks without fear of humiliation or career damage. Nurture a “can do” attitude within the team, and foster it by asking why or why not instead of saying yes or no.

4. Build work flow rhythm. Technology can be of great assistance. Project manage- ment software as well as other scheduling tools can help team members know exactly what they need to do and when. This can greatly assist in their coordination efforts and help assure that interdependent needs of team members are met.

5. Leverage team member strengths. Set individuals up to win by identifying and utilizing their strengths. The key to realizing the benefits of the team is to appropri- ately utilize the strengths of its individual members.73  

Reward Collaboration and Teamwork Rewards matter, and dissatisfaction with rewards is a common cause for suboptimal team performance. Despite the need to work collaboratively, many if not most professional service firms (law, accounting, and con- sulting practices) measure and reward individual contributions, such as billable hours, up-or-out promotion systems (either qualify for partner or find another job), and competi- tion between team members.74 In contrast, Whole Foods Market uses teams extensively throughout the organization, and most incentives are team-based, not individual. If a team’s department or store reduces costs and/or boosts revenues, then the team earns a share of the financial benefits.75 

Organizations that foster the greatest collaboration and assemble the most effective teams typically use hybrid reward systems that recognize both individual and team per- formance. Table 8.6 provides guidance on how to reward performance in teams, based on the desired outcome (speed or accuracy) and the degree of interdependence (low, moder- ate, high). These guidelines can give you a tremendous head start in determining how best to reward and motivate team performance.76 

PART 2 Groups324

Appropriate rewards for collaboration and teamwork motivate at both the individual and team levels, and they also positively influence many important outcomes across all levels in the Organizing Framework. The following Problem-Solving Application illus- trates how collaboration, teamwork, and performance management were applied in hos- pitals and nursing homes to improve patient and financial outcomes.

LOW INTERDEPENDENCE

MODERATE INTERDEPENDENCE

HIGH INTERDEPENDENCE

Speed Relay Teams Road Cycling Teams Crew Teams

What to measure: Individual performance

What to measure: Individual performance

What to measure: Team performance

How to measure: Managerial assessment

How to measure: Managerial assessment

How to measure: Managerial and peer assessment

How to Reward: Competitive rewards

How to reward: Competitive rewards

How to reward: Cooperative rewards

Accuracy

Gymnastics Teams

Basketball Teams

Synchronized Swimming Teams

What to measure: Individual performance

What to measure: Team performance

What to measure: Team performance

How to measure: Managerial assessment

How to measure: Managerial and peer assessment

How to measure: Managerial and peer assessment

How to reward: Competitive rewards

How to reward: Cooperative rewards

How to reward: Cooperative rewards

TABLE 8.6 RECOMMENDATIONS FOR IMPROVING THE COORDINATION AND MOTIVATION OF TEAMS AND TEAM MEMBERS

SOURCE: R. K. Gottfredson, “How to Get Your Teams to Work,” Industrial Management, July/August 2015, 25–30.

Together, Hospitals Combat a Common Foe77

The Foe Clostridium difficile, or C. difficile for short, is an antibiotic-resistant bacteria. The vast majority of people infected are patients in hospitals and nursing homes. Some enter the facility with the infec- tion, but it also is common for people admitted for other reasons to acquire it once there. Another com- mon source of infection is patients who are transferred from one facility to another and bring the bacteria with them, introducing it to a new patient population.

How It Does Its Damage Overuse and inappropriate use of antibiotics is largely responsible for this resistant bacteria. It is extremely difficult to kill and can live on bed rails, call buttons, and doorknobs for up to five months if they are not cleaned effectively.

Patients must ingest C. difficile to become infected. Typically they must also be on antibiotics that wipe out the good bacteria in their gut, allowing C. difficile to thrive there. This means prevention is

Problem-Solving Application

325Groups and Teams CHAPTER 8

We conclude the chapter with perhaps the most incredible and challenging application of teamwork—the International Space Station. Teamwork in this context is literally out of this world!

partly a matter of hygiene among care providers and in nursing home and hospital environments, and partly a matter of prescribing practices.

Costs and Responsibilities The C. difficile problem occurs across the United States, but a number of hospitals and nursing homes in the Rochester, New York, area had a particular problem. For instance, a group of hospitals was spending an additional $4 million to $5 million a year to deal with C. difficile- related problems. Moreover, Medicare is increasingly rewarding or punishing hospitals based on perfor- mance outcomes, such as infection rates and readmissions. The organizations therefore had both moral and financial incentives to act. Potential solutions were made more difficult because these same hospi- tals and nursing homes in the area compete on a daily basis for patients, doctors, and dollars. 

Apply the 3-Step Problem-Solving Approach

Step 1: Define the problem(s) confronting the hospitals and nursing homes.

Step 2: Identify the major causes of the problem(s).

Step 3: Make your recommendations.

The US National Aeronautics and Space Administration (NASA) epit- omizes teamwork. NASA epito- mizes the effective structure and implementation of multi-team teams. They have to be experts, as controlling space craft is obvi- ously incredibly complex and diffi- cult. Today, the organization’s challenges related to the Interna- tional Space Station (ISS) are sub- stantially greater. This is due to the fact that NASA is one of five space agencies around the globe that jointly control the Interna- tional Space Station. These agen- cies have rotated responsibilities 24 hours a day, 365 days a year, since 2000! The space station itself was built and is maintained by the five space agencies, which represent 23 countries. Yet effective coordination and collaboration occur almost seamlessly, even as team members come and go and responsibilities repeatedly cross international bor- ders. As part of the space station’s crew, NASA overcomes common challenges faced by many teams today.

Exemplary Teamwork at NASA OB in Action

Crew members of Expedition 30 pose for an in-flight crew portrait in the European Space Agency’s Automated Transfer Vehicle Edoardo Amaldi (ATV-3) while docked with the International Space Station. © Rex Features/AP Photo

326 PART 2 Groups

Your work life, and life more generally, is awash in teams. Apply the OB knowledge and tools gained in this chapter to be more successful and fulfilled when you work with others.

Dynamic Composition   The members of the various teams continually change. Astronauts from several countries routinely come and go, for example, because their time on board the ISS is limited for their safety. Imagine the time and re- sources required to continually prepare new members to live on the space station. Technical, physical, and cultural training requirements are immense, not least be- cause all team members must effectively execute their responsibilities when on board. 

Technology and Distance   Communication is critical and an ever-present chal- lenge. Ground control must communicate with both the ISS and its various loca- tions on the ground. It’s not as simple as making a cell phone call or Skyping. Distance is an obvious obstacle. NASA, and its partners, must overcome the “us” versus “them” dynamic between the flight crew and mission control. In addition to language differences at both mission control and the ISS, isolation is a problem. Astronauts can be on board the station for up to a year at a time. The confined spaces and lack of communication with family and friends are incredibly stressful. Thankfully, new technology enables the flight crew to communicate more fre- quently and privately with others on the ground.

The Ultimate Telecommuters An interesting way to think of astronauts and cos- monauts, is to think of them as the most extreme telecommuters! Most if not all the challenges discussed in this chapter are experienced by those involved in the ISS—both on the ground and in space.78

YOUR THOUGHTS?

Imagine you’re a leader of the ISS flight crew.

1. What team challenges do you think would be most enjoyable for you? 2. What team challenges do you think would be most problematic for you? 3. What would you do to ensure the team works effectively and safely?

327Groups and Teams CHAPTER 8

You learned that working with others can increase everybody’s performance because groups and teams can, and often do, accomplish more than individuals. You learned that roles and norms are the building blocks of group and team behavior. We explored group development processes, along with ways to differentiate groups and teams and the characteristics of effective team players. We saw the different types of teams and the value of interdependence. You learned how to boost your personal effectiveness further still by under- standing trust and knowing how to repair it. Fi- nally, we addressed the elements that foster team effectiveness and collaboration. Reinforce your learning with the Key Points below and consoli- date it using the Organizing Framework. Chal- lenge your mastery of the material by answering the Major Questions in your own words.

Key Points for Understanding Chapter 8 You learned the following key points:

8.1 GROUP CHARACTERISTICS • Groups consist of two or more individuals

who share norms, goals, and identity. • Both formal and informal groups are useful. • Roles are expected behaviors for a particular

job or position, and group roles set expecta- tions for members of a group.

• Norms are shared attitudes, opinions, feel- ings, or actions that help govern the behav- iors of groups and their members.

8.2 THE GROUP DEVELOPMENT PROCESS

• Groups often evolve or develop along five defined steps: forming, storming, norming, performing, and adjourning.

• Punctuated equilibrium is another form of group development, in which normal

functioning is disrupted by an event that causes the group to change the way it oper- ates. It then settles into this new mode of op- eration or equilibrium.

• Knowledge of group development can help you understand group dynamics and be more effective in groups and teams.

8.3 TEAMS AND THE POWER OF COMMON PURPOSE

• Teams differ from groups in terms of shared leadership, collective accountability, collec- tive purpose, and a focus on problem solving and collective effectiveness.

• Team players are committed, collaborative, and competent.

• Common forms of teams are work, project, cross-functional, self-managed, and virtual.

• Team interdependence describes the degree to which members depend on each other for information, materials, and other resources to complete their job tasks.

8.4 TRUST BUILDING AND REPAIR—ESSENTIAL TOOLS FOR SUCCESS

• Trust is a belief that another person will con- sider the way his or her intentions and behav- iors will affect you.

• Three common forms of trust are contractual, communication, and competence.

• Trust is critical to your short- and long-term success and, if damaged, can be repaired us- ing a seven-step process.

8.5 KEYS TO TEAM EFFECTIVENESS

• High-performing teams have several charac- teristics, such as participative leadership, aligned purpose, future focused, and creativity.

• Charters and strategies, composition, and ca- pacity are the three Cs of effective teams.

What Did I Learn?

328 PART 2 Groups

chapter itself, and your notes to revisit and an- swer the following major questions:

1. How can knowledge of groups and teams and their key characteristics make me more successful?

2. How can understanding the group develop- ment process make me more effective at school and work?

3. What are the characteristics of effective team players, team types, and interdependence, and how can these improve my performance in teams?

4. How can I build and repair trust in ways that make me more effective at school, work, and home?

5. What are the keys to effective teams, and how can I apply this knowledge to give me an advantage?

• Reward and collaboration are important means of fostering team effectiveness.

The Organizing Framework for Chapter 8 As shown in Figure 8.8, the process of group/ team dynamics leads to a large number of outcomes at all three levels in the Organizing Framework.

Challenge: Major Questions for Chapter 8 You should now be able to answer the following questions. Unless you can, have you really pro- cessed and internalized the lessons in the chap- ter? Refer to the Key Points, Figure 8.8, the

FIGURE 8.8 ORGANIZING FRAMEWORK FOR UNDERSTANDING AND APPLYING OB

© 2014 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors.

INPUTS PROCESSES OUTCOMES

Person Factors Situation Factors

Individual Level Group/Team Level • Group/team dynamics Organizational Level

Individual Level • Task performance • Work attitudes • Turnover • Career outcomes • Creativity Group/Team Level • Group/team performance • Group satisfaction • Group cohesion and conflict Organizational Level • Accounting/financial

performance • Customer satisfaction • Innovation

329Groups and Teams CHAPTER 8

IMPLICATIONS FOR ME There are five practical ways you can apply the material in this chapter. First, learn which individual functions of groups are most important to you. This knowledge can help you un- derstand why you are more satisfied in some groups than others. Knowledge of organiza- tional functions can help you diagnose conflict and/or underperformance in some of the groups in which you are a member. Second, apply your knowledge of task and maintenance roles to identify ways you can make meaningful contributions to your groups and teams. If a role is missing and important, use your knowledge to fulfill it. Third, develop your teamwork competencies. Table 8.5 provides examples of how to do it. These competencies will serve you in any group or team and increase your value throughout your career. Fourth, apply your knowledge to combat social loafing. Don’t let free riders add to or undermine your hard work. Fifth, your trustworthiness will make or break you. Pay attention to communication, support, respect, fairness, predictability, and your competence to boost your own trustwor- thiness. And when trust is diminished or violated, use Figure 8.7 to repair it.

IMPLICATIONS FOR MANAGERS  There are six practical implications that will benefit you as a manager. First, identify the im- portant task and maintenance roles in the various teams you manage or belong to. Be sure these important roles are fulfilled effectively (not always by you). Second, you can reduce frustrations when working in teams by understanding the group development process. Identify the particular stage of development the group is in, and then apply your knowl- edge to advance it to the next. Third, evaluate those you manage in terms of the three Cs of a team player—committed, collaborative, competent. These can help you explain both top performers and underperformers. Fourth, always be mindful of trust, both how trusting you are of your people and how trusting they are of you. Managing people is infinitely more difficult when trust is an issue—never underestimate its importance. Apply the knowledge you gained in this chapter to both build and repair trust (see Figure 8.7). Fifth, Use team charters to set up your various teams to win. Doing this work early can pay great dividends and avoid conflict throughout the team’s existence. Last but not least, be sure the tangible and intangible rewards you offer support collaboration and teamwork. 

330 PART 2 Groups

Google is well on its way to ruling the universe. Whether this is its actual goal or not, the company’s short- and long-term success depend on the perfor- mance of its work teams. Realizing this, Google ap- plied its immense human, technological, and financial resources to finding out what makes top-performing teams so effective. Despite its legendary achieve- ments, the company knew that teams vary consider- ably in terms of their performance, member satisfaction, and level of cohesion and conflict. To understand why, it did what it does best—collect and analyze data. It created Project Aristotle and spent millions of dollars to gather mountains of data from 180 teams across the company. The only thing more surprising than what it found was what it didn’t find.

What Did Google Expect to Find? Google sliced and diced the team data looking for patterns that would distinguish the most successful from the less successful teams. It expected that some combination of team member characteristics would reveal the optimal team profile. Such a profile or pattern never emerged. Google examined seem- ingly everything, such as team composition (team member personality, experience, age, gender, and education), how frequently teammates ate lunch to- gether and with whom, their social networks within the company, how often they socialized outside the office, whether they shared hobbies, and team man- agers’ leadership styles.

It also tested the belief that the best teams were made up of the best individual contributors, or that they paired introverts with introverts and friends with friends. To the researchers’ amazement, these as- sumptions were simply popular wisdom. In sum, “the ‘who’ part of the equation didn’t seem to matter.” Even more puzzling was that “two teams might have nearly identical makeups, with overlapping member- ships, but radically different levels of effective- ness,”80 said Abeer Dubey, a manager in Google’s People Analytics division.

What Did the Company Actually Find? It turned out it wasn’t so much who was in the group but the way the group functioned or operated that made the performance difference. Group norms—

expected behaviors for individuals and the larger team—helped explain why two groups with similar membership function very differently. But this finding was only the beginning. Now Google needed to iden- tify the operative norms.

Members of the Project Aristotle team began look- ing for team member data referring to factors such as unwritten rules, treatment of fellow team members, ways they communicated in meetings, and ways they expressed value and concern for one another. Dozens of potential norms emerged, but unfortunately the norms of one successful team often conflicted with those of another.

To help explain this finding, the Project Aristotle team reviewed existing research on teams and learned that work teams that showed success on one task often succeed at most. Those that per- formed poorly on one task typically performed poorly on others. This helped confirm their conclusion that norms were the key. However, they still couldn’t identify the particular norms that boosted perfor- mance or explain the seemingly conflicting norms of similarly successful teams. 

Then came a breakthrough. After intense analysis, two behaviors emerged. First, all high-functioning teams allowed members to speak in roughly the same proportion. Granted, they did this in many different ways, from taking turns to having a moderator orches- trate discussions, but the end result was the same— everybody got a turn. Second, the members of suc- cessful teams seemed to be good at sensing other team members’ emotions, through either their tone of voice, their expressions, or other nonverbal cues.

Having identified these two key norms, the Proj- ect Aristotle team was able to conclude that many other team inputs and processes were far less im- portant or didn’t matter at all. Put another way, teams could be very different in a host of ways, but so long as everybody got and took a turn when communicating, and members were sensitive to each other, then each had a chance of being a top- performing team. With this knowledge in hand, now came the hard part. How to instill these norms in work teams at Google?

How could Google instill the appropriate communi- cation practices, as well as build empathy into their teams’ dynamics?

PROBLEM-SOLVING APPLICATION CASE

Optimizing Team Performance at Google79

331Groups and Teams CHAPTER 8

if any, are most likely causes to the defined problem. For each cause, explain why this is a cause of the problem. Asking why multiple times is more likely to lead you to root causes of the problem. For example, do particular team member characteristics help explain the problem you defined in Step 1?

B. Follow the same process for the situation factors. For each ask yourself, Why is this a cause? By asking why multiple times you are likely to arrive at a more complete and accurate list of causes. Again, look to the Organizing Framework for this chapter for guidance.

C. Now consider the Processes box in the Organizing Framework. Are any processes at the individual, group/team, or organizational level potential causes of your defined problem? For any process you consider, ask yourself, Why is this a cause? Again, do this for several iterations to arrive at the root causes.

D. To check the accuracy or appropriateness of the causes, map them onto the defined problem.

Step 3: Make your recommendations for solving the problem. Consider whether you want to resolve it, solve it, or dissolve it (see Section 1.5). Which recom- mendation is desirable and feasible?

A. Given the causes identified in Step 2, what are your best recommendations? Use the material in the current chapter that best suits the cause. Remember to consider the OB in Action and Applying OB boxes, because these contain insights into what others have done. These insights might be especially useful for this case.

B. Be sure to consider the Organizing Framework— both person and situation factors, as well as processes at different levels.

C. Create an action plan for implementing your recommendations.

APPLY THE 3-STEP PROBLEM- SOLVING APPROACH TO OB Use the Organizing Framework in Figure 8.8 and the 3-Step Problem-Solving Approach to help identify in- puts, processes, and outcomes relative to this case.

Step 1: Define the problem.

A. Look first to the Outcomes box of the Organizing Framework to help identify the important problem(s) in this case. Remember that a problem is a gap between a desired and current state. State your problem as a gap, and be sure to consider problems at all three levels. If more than one desired outcome is not being accomplished, decide which one is most important and focus on it for steps 2 and 3.

B. Cases have protagonists (key players), and problems are generally viewed from a particular protagonist’s perspective. You therefore need to determine from whose perspective—employee, manager, team, or the organization—you’re defining the problem. As in other cases, whether you choose the individual or organizational level in this case can make a difference.

C. Use details in the case to determine the key problem. Don’t assume, infer, or create problems that are not included in the case.

D. To refine your choice, ask yourself, Why is this a problem? Focus on topics in the current chapter, because we generally select cases that illustrate concepts in the current chapter. (Reminder: Chapter 8 is the first chapter in the Groups/ Teams section of the book. Perhaps particular attention at this level is warranted.)

Step 2: Identify causes of the problem by using ma- terial from this chapter, which has been summarized in the Organizing Framework for Chapter 8 and is shown in Figure 8.8. Causes will tend to show up in either the Inputs box or the Processes box.

A. Start by looking at the Organizing Framework (Figure 8.8) and determine which person factors,

332 PART 2 Groups

LEGAL/ETHICAL CHALLENGE

When Would You Fire the Coach? The President?

The National Collegiate Athletic Association (NCAA) routinely hands down sanctions for violations of rules on recruiting, academic eligibility, and illegal payments. At some schools violations occur repeatedly. Such pat- terns suggest that current efforts to prevent unethical conduct in college sports are ineffective, despite the severity of some NCAA sanctions. With this as back- ground, the point of this Legal/Ethical Challenge is de- termining who should bear the consequences of such misconduct. Currently, it seems that leaders at differ- ent levels of universities reap the benefits of wins and championships, but that not all suffer the conse- quences of misconduct, even misconduct they (should) know about.

If you agree this is a problem that needs to be ad- dressed, then despite its intentions and efforts, the NCAA is only part of the solution. Perhaps the ultimate solution lies in the quality of university-level leadership by boards of trustees, presidents, and athletic direc- tors.81 The NCAA gives college presidents wide latitude to govern sports programs. They have official authority, and they typically report to boards of trust- ees who are in effect their bosses and thus responsi- ble for their conduct.

The Current and Prevailing View There are at least two views on misconduct in col- lege sports programs. One perspective, the prevail- ing view today, is that infractions are just part of doing business in college sports, and that sanctions are an unfortunate but nonetheless expected “busi- ness expense.” Economically this makes sense. Neither coaches, athletic directors, presidents, nor trustees want unethical activity to jeopardize the sometimes hundreds of millions of dollars of revenue generated by sports programs. For perspective, the top five revenue-generating college football teams netted over $300 million in profits in 2015.82 (That’s just five schools, and just profits.) Nor do leaders want to risk long-term damage to the reputation of the particular sports program or the larger university. For example, when Southern Methodist University football was found to be paying players, among other offenses, the NCAA imposed the “death penalty” by canceling the team’s 1987 season. The school was unable to field a team the following year and missed

that season as well. Many argue it has never recov- ered.83 Such consequences, the death penalty, have never been used by the NCAA since.

An Alternative View But what if sanctions did extend to university leaders? For instance, what if the board of trustees at a given university said that if a player is suspended, so are the coach and athletic director, without pay. If the player is dismissed, so are the coach and athletic director, and perhaps even the college president. Business execu- tives and managers are fired every day when their conduct jeopardizes far less money than is at stake in major college sports programs. 

While this solution may seem extreme and even un- realistic, it would certainly motivate presidents, athletic directors, and trustees to take greater responsibility for and oversight of the ethical conduct of their sports teams and programs. These leaders often bask in the rewards when their teams win championships, but they are able to contain or even avoid the costs of their mis- conduct. If both the rewards and the punishments ex- tended beyond individual players, however, that behavior would likely change. It also is more likely that leaders such as university presidents and trustees would be more proactive.

For instance, if these practices had been in place, perhaps Southern Methodist would not have hired men’s basketball coach Larry Brown in 2012. Yes, Brown had legendary success at both the college and professional levels. But his UCLA championship team had also been stripped of its title because of NCAA violations, and when he later coached the University of Kansas it was banned from the post- season play for a year and placed on probation for three.

If one of those universities’ presidents had been fired, along with the athletic directors and coaches, perhaps SMU might have more carefully considered hiring coach Brown.84  Now that Brown and SMU have both been slammed with sanctions by the NCAA, for Brown’s third set of violations, should oth- ers be held accountable—the president, the board of trustees, the athletic director? After all, they know- ingly took the chance that it wouldn’t happen again, and it did. Making matters worse, SMU President R.

333Groups and Teams CHAPTER 8

What Should Be Done About the Unethical Conduct in College Sports? 1. Don’t change anything. The current means for

dealing with misconduct, including NCAA sanctions, are sufficient. Justify.

2. Modify the NCAA authority and sanctions, but keep the system more or less as it is. Explain.

3. Hold university leadership accountable—some combination of coaches, their bosses the athletic directors, their bosses the presidents, and their bosses the boards of trustees. Explain.

4. Invent another alternative and explain.

Gerald Turner is co-chair of the Knight Commission on Intercollegiate Athletics whose stated mission is “to ensure that intercollegiate athletics programs op- erate within the educational mission of their colleges and universities.”85  It thus seems that they should have been especially tuned in to potential miscon- duct in athletic programs.

Does this offer guidance for Syracuse and Jim Boeheim, Louisville and Rick Pitino, or other col- lege basketball or sports programs more generally, when dealing with their own scandals and long pat- terns of unethical conduct? In the current system, if anybody pays penalties in a meaningful way it is the players who lose postseason opportunities and scholarships, compared to a token few game sus- pensions for coaches who are already wealthy. But what about the other leaders—athletic directors, presidents, trustees?86

9 Major Topics I’ll Learn and Questions I Should Be Able to Answer

9.1 Basic Dimensions of the Communication Process MAJOR QUESTION: How can knowing about the basic communication process help me communicate more effectively?

9.2 Communication Competence MAJOR QUESTION: What key aspects of interpersonal communication can help me improve my communication competence?

9.3 Gender, Generations, and Communication MAJOR QUESTION: How do gender and age affect the communication process?

9.4 Social Media and OB MAJOR QUESTION: How can social media increase my effectiveness at work and in my career?

9.5 Communication Skills to Boost Your Effectiveness MAJOR QUESTION: How can I increase my effectiveness using presentation skills, crucial conversations, and managing up?

How Can I Become a More Effective Communicator?

COMMUNICATION IN THE DIGITAL AGE

“The Organizing Framework shown in Figure 9.1 summarizes what you will learn in this chapter. You can see that communication is an important process at all three lev- els of OB—individual, group/team, and organizational. The quality and effectiveness of your communication is influenced greatly by person factors, such as your interper- sonal, nonverbal communication, and listening skills. Of course many situation factors also influence the outcomes of your communication efforts. Your choice of medium, spoken or written words, and of course social media are increasingly important in the workplace. Collectively, these inputs impact communication across levels and out- comes in the Organizing Framework.”

335

FIGURE 9.1 ORGANIZING FRAMEWORK FOR UNDERSTANDING AND APPLYING OB

© 2014 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors.

INPUTS PROCESSES OUTCOMES

Person Factors • Nonverbal communication • Active listening • Nondefensive communication • Empathy • Ethical behavior • Social media behaviors (an

individual employee) • Communication skills

Situation Factors • Choice of medium • HR policies (hiring and firing) • Social media practices

(managers and coworkers)

Individual Level • Communication

Group/Team Level • Communication

Organizational Level • Communication • HR policies (social media

policies)

Individual Level • Task performance • Work attitudes • Turnover

Group/Team Level • Group/team performance • Group satisfaction

Organizational Level • Accounting/financial

performance • Customer satisfaction • Innovation • Reputation • Legal liability

The importance of communication at work cannot be overstated. Your communication skills are important determinants of your opportunities and effectiveness throughout your working life. The fact that a large proportion of jobs require teamwork and communication technology, means that you are well served to enhance your understanding of communication processes and improve the many types of communication skills, such as non-verbal, public speaking, social media, and courageous conversations. © John Fedele/Blend Images LLC

Winning at Work Communication Counts in Landing a Job

What’s Ahead in This Chapter We’re about to give you practical guidance on how to communicate effectively. Communication is a critically important process at all levels of OB—individual, group, and organizational—and in most arenas of your life. We’ll guide you through important elements at each level, be- ginning with how individuals process information. We’ll also highlight the characteristics of competent commu- nicators and show you how to more successfully com- municate within and between generations and genders. We’ll conclude with the most practical tips of all: the do’s and don’ts of using social media in your professional life, ways to develop effective presentation and conversa- tional skills, and suggestions for managing up.

positive emotions are both attractive to others and contagious. Positivity sells. . . be positive in your words, non-verbals, attitude, and emotions!

• Smile. It’s one of the easiest ways to win people over.

• Take your time. Nerves often make us rush through an answer just to get it over with. Slow yourself down and speak in a normal conversational tone.

• Make eye contact. Don’t stare in the other person’s eyes, but don’t stare at the floor or out the window either.

• Dress the way they dress. Regardless of your own style or wardrobe, your choices need to match what is common at the company. The rule: Anything that distracts, diminishes.

• Close with a handshake. End the interview with a “thank you” and a firm handshake (don’t crush bones).

• Follow up. At the end of the interview ask when the interviewer would like you to follow up. Then drop your interviewer a note of thanks.

Fighting Nerves • Prepare. • Breathe. • Pause before answering. • Never say you’re nervous. • Use positive self-talk and visualization.1

As a job seeker, you are responsible for proving you’re the best candidate for the job. Performing well during a job interview depends on what you say and how you say it! Effective communication skills enable you both to sell yourself as the best candidate and to calm your own nerves.

What You Say in a Job Interview • Direct the conversation. Many people simply wait to

be asked questions, but you don’t need to. You can use small talk to get things started, but be brief. Also be sure you know your key selling points and guide the conversation to these. You can even state them upfront, saying, “I’d like to cover A, B, and C.”

• Pick your selling points. Identify and focus on only your top two or three selling points. If you have little experience, focus on personal qualities or skills. If you have experience, highlight significant achievements.

• Substantiate. Support and illustrate your selling points with numbers and/or stories. For instance, be explicit and say you were the number one in sales, increased efficiency by 20 percent, ranked top 10 in your class, or were member of a state champion team in a sport. Also consider using stories to describe achievements (school, work, or sports), how you dealt with a chal- lenging situation, or what you appreciated most about a particular job or experience.

• Describe what’s in it for them. Ask not what the job will do for you, but what you can do on the job. Ex- plain why you’re a good match and what you bring to the party.

• Do your homework. Be sure to thoroughly research the company and people. Look online for informa- tion relevant to past, current, and future company events and initiatives. Use this knowledge when talking or asking questions about the company.

• Anticipate challenging questions. Know you will be asked, “What are your weaknesses?” The key here is to briefly identify a challenge, then discuss how you solved the problem and how it helped you grow.

How You Say It • Show them you’ll bring it. Express your enthusiasm

and willingness to do anything, not just the most in- teresting stuff. Remember, enthusiasm and other

336

337Communication in the Digital Age CHAPTER 9

Irish Playwright George Bernard Shaw summed up a key issue with communication in stat- ing “the single biggest problem in communication is the illusion that it has taken place.”2

The illusion that we have communicated when we have not can lead to catastrophic consequences, such as the 2014 sinking of the Sewol, a South Korean ferry. Investigators concluded that “crucial miscommunication between the crew and ship traffic controllers who could have expedited rescue” was a key cause of 293 deaths. Many of the dead were 16- and 17-year-olds on a school outing.3

Effective communication helps individuals, groups, and organizations to achieve their goals. Bridgewater Associates LP, the world’s largest hedge fund, is trying to en- hance productivity and customer service by fostering open communication. Employees are asked to “tell it like it is,” according to The Wall Street Journal. They are “encour- aged to air any gripes and concerns about the hedge fund in a digital ‘issue log’ that can be seen by anyone at Bridgewater. The comments usually are about bigger problems but also have included difficulties formatting e-mail.” To improve individual’s performance, the company also collects and disseminates feedback collected on iPads on which work- ers use apps to rate each other on dozens of strengths and weaknesses.4

TEKsystems, an IT recruiting firm, has employed a different communication strat- egy. The company sent 18 senior leaders to visit more than 100 of its local offices over the course of one month. The goal of these meetings was to update employees in person about what was happening in the company and its plans.5 

These examples illustrate why communication is a critical process at all three levels in the Organizing Framework. We hope this chapter helps you develop your communication skills.

Defining Communication Communication  is “the exchange of information between a sender and a receiver, and the inference (perception) of meaning between the individuals involved.”6 It is a circular and dynamic process in which people interpret and make sense of the information they exchange. And it’s a very important activity in both our personal and professional lives.7

A national survey of 400 employers and 613 college students revealed that more than 80 percent of employers and 75 percent of students believe oral and written communi- cation skills are important for workplace success. However, more than 60 percent of students reported they were skilled in oral and written communication, whereas only 27 percent of employers endorsed this conclusion.8

M A J O R Q U E S T I O N

How can knowing about the basic communication process help me communicate more effectively?

T H E B I G G E R P I C T U R E

By this point in your study of OB, you probably realize that communication is a critical and dy-

namic process within the Organizing Framework. It includes a sender, a message, and a receiver;

encoding and decoding; a medium; feedback; and the need to deal with “noise” or interference.

You will also see why you should match the communication medium to the situation.

9.1 BASIC DIMENSIONS OF THE COMMUNICATION PROCESS

338 PART 2 Groups

How the Communication Process Works We all know communicating is neither simple nor clear-cut. Researchers have begun to examine it as a form of social information processing in which receivers interpret mes- sages by cognitively processing information. This work has led to development of a per- ceptual model of communication that depicts it as a process in which receivers create meaning in their own minds.9 Let us consider the parts of this process and illustrate them with an example (see Figure 9.2). 

Sender, Message, and Receiver The sender is the person or group wanting to communicate information—the message. The receiver is the person, group, or organiza- tion for whom the message is intended.

These students are working on a class project in the library. Note how some of them are actively involved in the conversation and others appear a bit detached. Why do you think college students overestimate their communication skills? © Monkey Business Images/Shutterstock RF

FIGURE 9.2 COMMUNICATION PROCESS IN ACTION

Noise (any interference)

Let’s meet at Starbucks to study.

2. Message is transmitted through a medium (e.g., text message).

Which Starbucks? We have two classes together; which one are you thinking about?

1. Sender encodes message, selects medium (e.g., cell phone).

4. Receiver sends feedback through a medium (e.g., text message).

3. Receiver decodes message and decides that feedback is needed.

(left): © Image Source/Getty Images RF; (right): © Fuse/Getty Images RF

339Communication in the Digital Age CHAPTER 9

Encoding Communication begins when a sender encodes an idea or thought. Encod- ing means translating thoughts into a form or language that can be understood by others. This language becomes the foundation of the message. For example, if a professor wants to communicate with you about an assignment, he or she must first think about what in- formation to communicate. Once the professor has resolved this issue in his or her mind (encoding), the next step is to select a medium in which to communicate.

Selecting a Medium Managers can communicate through a variety of media. These in- clude face-to-face conversations and meetings, telephone calls, charts and graphs, and the many digital messaging forms—e-mail, texting, voice mail, videoconferencing, Twitter, Face- book, Blackboard, and others. We discuss the best way to select a medium in the next section.

Decoding and Creating Meaning Decoding, the process of interpreting or making sense of a message, occurs when receivers receive a message. When a professor commu- nicates with you about an assignment, for example, you decode the message when you receive it.

The perceptual model of communication assumes the receiver creates the meaning of a message in his or her mind. This means different people can interpret the same message differently.

Feedback The first round of feedback occurs when the original receiver expresses a reaction to the sender’s message. Once the initial sender has obtained this feedback, he or she is likely to decode it and send corresponding feedback. This process continues until sender and receiver believe they have effectively communicated.

Noise Noise  is anything that interferes with the transmission and understanding of a message. There are many other sources of noise: language differences, speech im- pairment, illegible handwriting, inaccurate statistics, poor hearing and eyesight, environ- mental noises, other people talking, faulty equipment, and physical distance between sender and receiver. Noise affects all the links in the communication process. Nonverbal communication, discussed later in this chapter, also is a source of noise, as are cross- cultural differences between senders and receivers, and the physical work environment.

The Priceline Group is an $8.44 billion online travel company that provides consum- ers with accommodation reservations for hotels, bed and breakfasts, hostels, apart- ments, vacation rentals, and other properties through its Booking.com, Priceline.com, and Agoda brands. The company does not directly provide these services. It essen- tially facilitates travel-related services from different suppliers to its customers.10

Although Priceline primarily does business online, travelers call the company for many reasons, such as to confirm travel details or make changes in an itinerary. For- mer CEO Paul J. Hennessy says about 20 percent of customers end up speaking with Priceline employees on the phone. This is a communication challenge because the company’s 12,700 employees operate 24/7 in more than 220 countries.11

For instance, most travelers prefer to speak with customer service representa- tives in their native language. To do this right, Priceline makes its customer service number visible on all online pages and provides the service itself, even though outsourcing could save money.

Booking.com, Priceline’s largest global business, employs 6,000 full-time cus- tomer service employees. Each is fluent in English and one other language. “Many

The Priceline Group Works Hard to Avoid Noise with Its Global Customers

OB in Action

340 PART 2 Groups

speak three or four languages, particularly in Europe,” Hennessy says. “We test fluency, and we pay people a little more for every extra language they speak. We do offer language lessons . . . we offer service in 42 languages.”

It’s also a challenge to hire people who speak multiple languages yet possess good communication skills. One of these skills is an understanding of cross-cultural nuances. For example, people in “Brazil and China tend to call more frequently, per- haps because they’re unaccustomed to booking trips solely online,” says Hennessy. “The Dutch . . . call the least. South Americans tend to stay on calls longer, so we may need more reps speaking their languages to avoid keeping people on hold.”12

Linguistic details within a language can be a hurdle. Hennessy says, “No mat- ter how fluent the rep, customers in some parts of the world simply don’t like talk- ing to people who aren’t native speakers or don’t get the linguistic details right.” He offers the example of Japanese customers who can tell the difference “be- tween a Japanese speaker from Singapore or the United States and one from Ja- pan, and they prefer the latter.” Priceline offers special training for reps who cover Japan. The company goes to great lengths to route calls between customer ser- vice centers in such a way as to maximize the chance that customers will “speak to someone who uses their language the way they prefer.”13

Priceline also focuses on the quality of written communication. Given its global brand, the company has to hire a large number of translators to translate all docu- ments into local languages for its websites. Priceline won’t use computer pro- grams to do this work because it can lead to miscommunication. 

YOUR THOUGHTS?

1. Which components of the communication process are most likely to create noise between Priceline’s customer service employees and its customers? 

2. What most impresses you about Priceline’s methods for effectively communi- cating with customers? Explain.

Selecting the Right Medium One way in which we communicate effectively is by using the medium most appropriate for the situation. That is, we match media richness with the situation’s complexity. Let’s look at how.

Media Richness Media richness  measures the capacity of a given communica- tion medium to convey information and promote understanding.14 Media vary from rich to lean. The richer a medium, the better it is at conveying information. Four factors affect richness:

1. Speed of feedback. Faster feedback offers more richness. 2. Channel. The visual and audio characteristics of a videoconference are richer than

the limited visual aspects of a written report. 3. Type. Personal media such as phone calls and interpersonal speech are richer than

impersonal media such as memos and group emails. 4. Language source. The natural body language and speech in a face-to-face conversa-

tion provide a richer medium than the numbers in a financial statement.

Complexity of the Situation Situations can range from low to high in complexity. Low-complexity situations are routine and predictable, such as a manager updating em- ployees on last month’s sales or calculating someone’s paycheck. Highly complex situa- tions, such as a corporate reorganization or merger, are ambiguous, hard to analyze, and often emotionally charged.

341Communication in the Digital Age CHAPTER 9

Picking the Right Medium A two-way face-to-face conversation is the richest form of communication. It provides immediate feedback and allows participants to observe multiple cues such as body language and tone of voice. Use face-to-face in situations that are complex or that are highly important to receivers. In contrast, telephone conversations and videoconferencing are not as informative as face-to-face exchanges even though they are relatively high in richness. For example, webinars and WebEx presentations are well suited for disseminating information, but we can say from experience that they are not as good for ensuring the messaging has been understood. At the other end of the complexity scale, newsletters, computer reports, and general e-mail blasts are lean media and best for less complex situations. E-mail and social media messages vary in media richness: leaner if they impersonally blanket a large audience, and richer if they mix personal textual and video information that prompts quick conversational feedback.15 

The photo on the right represents a less complex situation than the one on the left. Speaking to a group of employees in an open forum is more complicated because the speaker has no idea what people might ask or how they might respond to the message. How would you suggest that managers prepare for an open forum meeting? (left): © Ryan McVay/Getty Images RF; (right): © Jupiterimages/Getty Images RF

TAKE-AWAY APPLICATION

Analyzing a Miscommunication

Think of a recent situation in which you had a key miscommunication with an individ- ual or group. Now answer the following questions:

1. In terms of the process model of communication shown in Figure 9.2, what went wrong?

2. Based on what you’ve just learned about communication media, did you choose the most appropriate medium? Explain.

3. Based on your answers to the above two questions, what would you do differently?

We conclude this section by noting that people have preferences for communicating in different media. Research on individual differences identified the following trends:

• More educated hotel guests prefer to complain in person or via written communi- cation. Less educated people tend to complain on guest-comment cards.16

• Males and extroverts prefer to communicate via high-richness media such as face- to-face.17

• Older individuals are less likely to communicate via mobile devices.18 We suspect this will change as more baby boomers reach retirement age.

342 PART 2 Groups

Although there is no universally accepted definition of communication competence,  it is a performance-based index of an individual’s abilities to effectively use commu- nication behaviors in a given context.19

Are you curious about your level of communication competence? Is it low, medium, or high? Find out by completing Self-Assessment 9.1. If your score is lower than you prefer, find ideas in the chapter for improving your interpersonal communication skills.

M A J O R Q U E S T I O N

What key aspects of interpersonal communication can help me improve my communication competence?

T H E B I G G E R P I C T U R E

Communication competence is your ability to effectively communicate with others. Knowing that

recruiters look for communication skills in college graduates, you’ll be happy to learn that you

can improve these skills. You will learn how you can use nonverbal communication, active listen-

ing, nondefensive communication, and empathy to enhance your communication competence.

9.2 COMMUNICATION COMPETENCE

Assessing Your Communication Competence Please be prepared to answer these questions if your instructor has assigned Self-Assessment 9.1 in Connect. 

1. Are you happy with the results?

2. Based on your scores, what are your top three strengths and your three biggest weaknesses?

3. How might you use your strengths more effectively in your role as a student?

4. How might you improve on your weaknesses?

SELF-ASSESSMENT 9.1

Let’s consider four key communication skills that affect your communication competence:

• Nonverbal communication • Active listening • Nondefensive communication • Empathy

Sources of Nonverbal Communication Nonverbal communication  is communication without words. According to commu- nication experts “it includes observable behaviors such as facial expressions, eyes, touch- ing, and tone of voice, as well as less obvious messages such as dress, posture, and spatial distance between two or more people.”20

Nonverbal communication adds flavor to oral communication. That is, it helps you understand the attitudes and emotions of those with whom you are speaking, which in turn helps you more accurately interpret their message.21

343Communication in the Digital Age CHAPTER 9

Let’s consider four key sources of nonverbal messages: • Body movements and gestures. • Facial expressions. • Touch. • Eye contact.

Body Movements and Gestures Body movements, such as leaning forward or backward, and gestures provide nonverbal information that can either enhance or detract from the communication process. Open body positions, such as leaning backward or ges- turing with palms facing up, communicate immediacy, a term used to represent openness, warmth, closeness, and availability for communication. A recent study showed that posi- tive hand gestures by managers produced more immediacy from employees than defen- sive or no hand gestures.22 Defensiveness is communicated by gestures such as folding arms, crossing hands, crossing legs, or pointing at others.

Touch Touching is another powerful nonverbal cue. People tend to touch those they like. Research reveals that women do more touching during conversations than men.23 Touching conveys an impression of warmth and caring and can help create a personal bond between people. Be careful about using touch with people from diverse cultures, however, because norms for touching vary significantly around the world.

Facial Expressions Facial expressions convey a wealth of information. Smiling, for instance, typically represents warmth, happiness, or friendship, whereas frowning conveys dissatisfaction or anger. Are these interpretations universal? A summary of relevant re- search revealed that the association between facial expressions and emotions varies across cultures.24 A smile, for example, does not convey the same emotion in different countries. Be careful when interpreting facial expressions among diverse groups of employees.

Eye Contact Eye contact is a strong nonverbal cue that varies across cultures. West- erners are taught at an early age to look at their parents when spoken to. In contrast, Asians are taught to avoid eye contact with a parent or superior in order to show obedi- ence and subservience.25 Once again, you need to be sensitive to different orientations toward maintaining eye contact with diverse employees.

Practical Tips Here is our advice for improving your nonverbal communication skills.

Body movements, gestures, and speech • Lean forward to show the speaker you are interested.  • Don’t display slumped shoulders, downward head, flat tones, or inaudible voice, all

of which convey indecisiveness or lack of confidence. • Don’t speak too fast or too slowly. Your tone of voice should match the tone of the

message. • Use paraphrasing as a mechanism to check on communication accuracy.

Paraphrasing  is restating what someone else has said or written.

Facial expressions like these can reveal the emotions behind a message, but they are easily misinterpreted. Which of these facial expressions suggest happiness, worry, and anger? (left to right): © uwe umst_tter/Getty Images RF, © Chajamp/Shutterstock RF, © Royalty-Free/Corbis, © pathdoc/Shutterstock RF

344 PART 2 Groups

Facial expressions • Nod your head to show you are

listening or that you agree. • Smile and show interest. • Don’t close your eyes or tense

facial muscles.

Eye contact • Maintain eye contact and don’t

look away from the speaker. 

Listening Listening  is the process of actively decoding and interpreting verbal messages. It requires cognitive atten- tion and information processing; simply hearing does not. There is general con- sensus that listening is a cornerstone skill of communication competence.

In studies that support this conclu- sion, active listening made receivers feel more understood. It also led people to conclude that their conversations were more helpful, sensitive, and supportive.26 Clearly, active listening yields positive outcomes.

Unfortunately, many of us think we are good listeners when evidence suggests just the opposite. For example, researchers estimate that typical listeners retain only 20 to 50 percent of what they hear.27

Why do you think we miss or lose so much of what we hear? One reason is that we have the cognitive capacity to process words at a much higher rate than people speak. This means our cognitive processes are being underutilized, leading to daydreaming and distractions. Noise is another reason. A third reason, and one you can control, is your motivation to listen and your listening style. It takes effort to actively listen. You won’t be a better listener unless you are motivated to become one.

What’s Your Listening Style—or Styles? You can improve your communication competence by understanding your typical listening style. There are four styles:28

1. Active—I’m fully invested. Active listeners are “all in.” That is, they are motivated to listen and give full attention when others are talking. They focus on what is being com- municated and expend energy by participating in the discussion. They also use positive body language, such as leaning in or making direct eye contact, to convey interest.

2. Involved—I’m partially invested. Involved listeners devote some, but not all, of their attention and energy to listening. They reflect on what is being said and half- heartedly participate in the discussion. Their use of nonverbal cues tends to be incon- sistent or intermittent, and they can show nonverbal signs of interest and noninterest in the same conversation.

3. Passive—It’s not my responsibility to listen. Passive listeners are not equal part- ners in a speaking–listening exchange. They assume the speaker is responsible for the quality of the interaction and believe their role is to passively take in information. Passive listeners will display attentiveness, but they can fake it at times. Overall, they don’t expend much motivation or energy in receiving and decoding messages.

4. Detached—I’m uninterested. Detached listeners tend to withdraw from the interac- tion. They appear inattentive, bored, distracted, and uninterested. They may start us- ing mobile devices during the speaking–listening exchange. Their body language will reflect lack of interest, such as slumping and avoiding direct eye contact.

As children we all were instructed to listen. However, many adults seem to suffer from poor listening skills. Why is this? For one, it takes effort and motivation to be a good listener. To communicate and perform better, we’d all benefit from investing more effort into listening more effectively. Table 9.1 provides recommendations for improving your listening skills. © McGraw-Hill Education/Eclipse Studios

345Communication in the Digital Age CHAPTER 9

Which of the four styles do you tend to use? Do you consistently use one or two styles, or does your style vary from one situation to the next? You can answer these ques- tions by taking Self-Assessment 9.2.

Assessing Your Listening Style Please be prepared to answer these questions if your instructor has assigned Self-Assessment 9.2 in Connect. 

1. Based on your results, how would you classify your style?

2. Are you surprised by the results?

3. Identify three things you can do to improve your listening skills.

SELF-ASSESSMENT 9.2

Becoming a More Effective Listener Effective listening is a learned skill that requires effort and motivation. It comes down to paying attention to the content of the message. The suggestions in Table 9.1 can increase your listening skills at school, home, and work.

Nondefensive Communication Defensiveness  occurs when people perceive they are being attacked or threatened. Our “first responder” to defensiveness is the brain’s amygdala. A neuroscience expert

Tip Explanation

Show respect. Give everyone the opportunity to explain his/her ideas without interrupting. Actively try to help the sender convey his or her message.

Listen from the first sentence.

Turn off your internal thoughts and mentally put aside whatever you were thinking about prior to the interaction.

Be mindful. Stay in the moment and focus on the sender. Don’t try to figure out what the speaker is going to say.

Keep quiet. Use your ears more than your mouth, and try to follow the 80/20 rule. That is, your conversation partner should speak 80 percent of the time and you should speak 20 percent.

Ask questions. Asking questions helps you clarify what is being said and demonstrates that you are listening.

Paraphrase and summarize.

Paraphrasing repeats back to someone what you believe you just heard him or her say. Summarizing consolidates an entire conversation. Both these techniques enhance communication accuracy because they help to ensure messages are being understood correctly.

Remember what was said.

Either take notes or make an effort to log critical information into your mental computer.

Involve your body. Use nonverbal cues to demonstrate interest and involvement.

TABLE 9.1 TIPS FOR EFFECTIVE LISTENING

SOURCE: Based on J. Keyser, “Active Listening Leads to Business Success,” T+D, July 2013, 26–28; and B. Brooks, “The Power of Active Listening,” The American Salesman, December 2010, 28–30.

346 PART 2 Groups

noted the amygdala “accesses emotional memories that identify a given stimulus as potentially threaten- ing and triggers the emotional fear response that sets the fight-or-f light biobehavioral response in mo- tion.”29 This reaction leads to defensive listening and destructive behaviors such as shutting down or being passive-aggressive, standing behind rules or policies, creating a diversion, or counterattacking. 

Moreover, defensiveness from one person acti- vates a similar response in the other party. All told, defensiveness from either party in an exchange fosters the exchange of inaccurate and inefficient communi- cation.30

You may be surprised to learn that defensiveness is often triggered by nothing more than a poor choice of words or nonverbal posture during interactions. In the language of behavior modification, these triggers are  antecedents of defensiveness. For example, using absolutes like “always” or “never” is very likely to cre- ate a defensive response. Try to avoid using absolutes because they are rarely true. Instead, you can increase your communication competence by avoiding the de- fensive antecedents and employing the positive ante- cedents of nondefensive communication shown in Table 9.2.

Have you ever been in an auto accident? If yes, then you likely have intimate knowledge of defensiveness. In situations like this, one party often tries to blame the other while both defend themselves. Which of the toward-defensiveness styles in Table 9.2 are likely to occur in such situations? © Chris Ryan/agefotostock RF

TOWARD DEFENSIVENESS TOWARD NONDEFENSIVENESS

Style Example Style Example

Evaluative “Your work is sloppy.” Descriptive “Your work was two days late.”

Controlling “You need to . . .” Problem solving “What do you think are the causes of the missed deadline?”

Strategizing “I’d like you to agree with me during the meeting so that we can overcome any challenges.” 

Straightforward “Vote your conscious at the meeting. You can agree or disagree with my proposal.” 

Neutral “Don’t worry about missing the deadline. It’s no big deal.”

Empathetic “I sense disappointment about missing the deadline. Let’s figure out how we can get back on schedule.” 

Superior “Listen to me; I’ve worked here 20 years.” 

Equal “Let’s figure out the causes of the missed deadline together.”

Certain “We tried this idea in the past. It just doesn’t work.” 

Honest and open

Using I-messages: “I am angry about the way you spoke to the customer because our department looked unresponsive.”

TABLE 9.2 ANTECEDENTS OF DEFENSIVE AND NONDEFENSIVE COMMUNICATION

SOURCE: Based on J. R. Gibb, “Defensive Communication,” Journal of Communication, 1961, 141–148; and “Reach Out: Effective Communication,” Sunday Business Post, April 14, 2013.

347Communication in the Digital Age CHAPTER 9

Connecting with Others via Empathy We first mentioned empathy in Chapter 3 when discussing the components of emo- tional intelligence. Although researchers propose multiple types of empathy, the gen- eral consensus is that empathy  represents the ability to recognize and understand another person’s feelings and thoughts.31 It is a reflective technique that fosters open communication.

Being empathetic requires two key actions. The first is mindfulness. Empathy neces- sitates that we place our attention on the feelings and emotions being displayed both verbally and nonverbally by others. The second action is to incorporate our understanding of another person’s feelings and thoughts into our communications. This will lead us to use language that fits the receiver’s perspective.

Empathy leads to more effective communication and interaction because people feel heard. It also sends the message that we care about others. Although women are often more empathetic, studies show that everyone can learn this skill with training and practice.32 

Ford Motor Co. is using the principle of empathy to help its engineers design more effective products.

TAKE-AWAY APPLICATION

Realizing My Defensive Communication

1. Think of an interaction you had with someone that resulted in defensiveness from either the sender or receiver.

2. Referring to Tables 9.1 and 9.2, identify the potential causes of the defensive communication pattern.

3. Again referring to Tables 9.1 and 9.2, identify three things you could have done differently to facilitate nondefensive communication.

A Harvard Business Review article focused on the role of empathy in organiza- tions. Here is what the author said about its use at Ford Motor Co. “Ford Motor Co. started asking its (mostly male) engineers to wear the Empathy Belly, a sim- ulator that allows them to experience symptoms of pregnancy firsthand—the back pain, the bladder pressure, the 30 or so pounds of extra weight. They can even feel movement that mimics fetal kicking. The idea is to get them to under- stand the ergonomic challenges that pregnant women face when driving, such as limited reach, shifts in posture and center of gravity, and general bodily awkwardness.”33

YOUR THOUGHTS?

1. Is this a good application of empathy? Explain.  2. Can you think of other contexts in which it would be useful to use empathy?

Discuss. 

Ford Designs Products by Using Empathy OB in Action

348 PART 2 Groups

Assume you are about to work with someone who made the following statement during a strategic planning meeting. “I’m not on board with the direction this decision is going. . . . No, I’m not finished. I won’t back down from this position, and I’m not going to commit my team and resources to this project until we have more conclusive evidence to work with. Period.” What is your impression of this person? Would it be different if the speak- er’s name were Mary rather than Mark?

A team of researchers examined this question and found that women who disagreed in a forceful manner like this were evaluated more negatively than men.34 This result held for both male and female evaluators. Let’s consider two explanations.

The first is implicit cognition, which was discussed in Chapter 4. Implicit cognition consists of any thoughts or beliefs that are automatically activated from memory without our conscious awareness. It causes us to make biased decisions without realizing we are doing so.35 Best-selling author Sheryl Sandberg and Professor Adam Grant commented about this bias by noting, “When a woman speaks in a professional setting, she walks a tightrope. Either she’s barely heard or she’s judged as too aggressive. When a man says virtually the same thing, heads nod in appreciation for his fine idea.”36

The second explanation is linguistic styles. Deborah Tannen, a communication ex- pert, defines linguistic style as follows:

Linguistic style  refers to a person’s characteristic speaking pattern. It includes such features as directness or indirectness, pacing and pausing, word choice, and the use of such elements as jokes, figures of speech, stories, questions, and apologies. In other words, linguistic style is a set of culturally learned signals by which we not only communicate what we mean but also interpret others’ meaning and evaluate one another as people.37

You can see how linguistic style helps explain communication differences between women and men and across generations. This section will increase your understanding of interpersonal communication across age and gender barriers. 

Communication Patterns between Women and Men There are two competing explanations about the origin of linguistic styles between men and women. Some researchers believe interpersonal differences between women and men are due to inherited biological differences between the sexes. This perspective, also called the evolutionary psychology or Darwinian perspective, attributes gender differences in communication to drives, needs, and conflicts associated with reproductive strategies used by women and men. The second perspective, social role theory, suggests that girls and boys are taught to communicate differently. Here is what these explanations suggest about male and female communication patterns.38

M A J O R Q U E S T I O N

How do gender and age affect the communication process?

T H E B I G G E R P I C T U R E

Women and men have communicated differently since the dawn of time. So do people from

varying generations. You can improve your communication competence by understanding

and accommodating communication differences among men and women and various genera-

tions. This section will help you in this pursuit.

9.3 GENDER, GENERATIONS, AND COMMUNICATION

349Communication in the Digital Age CHAPTER 9

The Male Perspective Males are expected to communicate more aggressively, interrupt others more than women, and hide their emotions because they have an inherent desire to pos- sess features attractive to females. Men also see conversations as negotiations in which people try to achieve and maintain the upper hand. Thus they feel it is important to protect themselves from others’ attempts to put them down or push them around. This perspective increases a male’s need to maintain independence and avoid failure.39 Although males are certainly not competing for mate selection during a business meeting, evolutionary psychologists propose that men cannot turn off the biologically based determinants of their behavior.40

The Female Perspective According to social role theory, females and males learn ways of speaking while growing up. Research shows that girls learn conversational skills and habits that focus on rapport and relationships, whereas boys learn skills and habits that focus on status and hierarchies. Accordingly, women come to view communication as a network of connections in which conversations are negotiations for closeness. This orientation leads women to seek and give confirmation and support more than men.41

What Does Research Reveal? Research demonstrates that women and men com- municate differently in a number of ways.42 Women are more likely to share credit for success, to ask questions for clarification, to tactfully give feedback by mitigating criti- cism with praise, and to indirectly tell others what to do. According to The Wall Street Journal, women also are “more likely to add qualifiers (‘I’m not sure, but . . .’) and apologies (‘I’m sorry to interrupt, but . . .’). When complimented on her work, a woman is more likely to downplay it, saying she was ‘lucky.’”43 These tendencies allow women to be interrupted more than men when communicating with others.44

In contrast, men are more likely to boast about themselves, to bluntly give feedback, to withhold compliments, to ask fewer questions, and to avoid admitting fault or weaknesses.

Generational Differences in Communication As discussed in Chapter 4, today’s workplace often includes people from four different generations—traditionalists, baby boomers, Gen Xers, and Millennials (Gen Ys). (Refer to Table 4.3 for additional details and characteristics.) Among the challenges in this sce- nario is the fact that different generations prefer different media, as discussed above, and they have different expectations and norms about communication.

Women are more likely to be interrupted during this meeting attended by a group of global employees. What can women do to ensure that their voices are heard and not overun by others during a meeting? © Potstock/Shutterstock RF

350 PART 2 Groups

The Role of Digital Devices When it comes to communication media, Millennials and Gen Xers are more likely to love their digital devices than are boomers and traditionalists. Millennials were brought up with instant messaging and texting and prefer these media over phone calls, letters, and reports. The San Francisco 49ers professional football team ac- knowledges these trends and is making accommodations in managing its operations.

The first thing the team did was to change the format of team meetings. Rather than lasting two straight hours, the meetings are now broken into 30-minute segments fol- lowed by a 10-minute break. Then-coach Jim Tomsula said the breaks enable players to “go grab your phone, do your multitasking, and get your fix” before returning to the meeting. The team now puts digital playbooks and weekly briefings on social media. Practice tapes are also made available on players’ tablets. Finally, calendar alerts ensure that players get information about meetings and deadlines, and the team is also investigat- ing how apps might help develop players’ football skills.45

Communication Expectations and Norms Younger employees also are more likely to use the Internet and social media to accomplish their tasks. Patty Baxter, pub- lisher at Metro Guide Publishing in Halifax, Nova Scotia, has firsthand knowledge of this communication pattern.

Baxter learned that advertising sales were down because her staff, all under the age of 35, were e-mailing sales pitches rather than calling potential clients on the phone. She noted, “E-mail won’t cut it in professions like sales, where personal rapport matters. You’re not selling if you’re just asking a question and getting an answer back.”46 Baxter wanted her employees to start calling prospective clients on the phone. 

Not everyone agrees, however. Stephanie Shih, 27, a marketing manager at Paperless Post in New York, concluded that phones are outdated. For Kevin Castle, 32-year-old chief technology officer at Technossus in Irvine, California, “unplanned calls are such an annoyance that he usually unplugs his desk phone and stashes it in a cabinet. Calling someone without e-mailing first can make it seem as though you’re prioritizing your needs over theirs.”47

Improving Communications between the Sexes and Generations It’s unwise to generalize any trends, preferences, or perceptions to all men, all women, or all members of a particular generation. Some men, for instance, are less likely to boast about their achievements, while some women are less likely to share the credit. Some traditional- ists embrace technology and new communication practices, while not all members of Gen Y are technological whizzes. There are always exceptions to the rule. In recognition of that fact, here are some suggestions that can enhance your communication competence:

• Clarify communication expectations and norms. If your manager fails to dis- cuss these, bring the topic up. It’s better to understand expectations than to guess wrong. After all, you are the one who will lose if people form negative perceptions about your communication skills and patterns.

• Use a variety of communication tools. Regardless of your preferred mode of communication (such as face-to-face or texting), employees from all generations should use a variety of media according to the circumstances. This avoids alienat- ing any particular generation.

• Be aware of implicit cognition. Don’t assume, based on somebody’s gender or age, that he or she only likes one mode of communication. If you find males interrupting, gently call them out. If someone is quiet in a meeting, ask for his or her opinion.

• Make sure people get credit for their ideas and not their gender. Sometimes a woman “will say something, and it’s not acknowledged until a guy says it later,” Paul Gotti, Cardinal Health’s vice president of nuclear pharmacy services, says. He makes sure to credit the woman and ask her to elaborate.48

351Communication in the Digital Age CHAPTER 9

Social media  use web-based and mobile technologies to generate interactive dia- logue with members of a network. Social media are now woven throughout the fabric of our lives. Their use affects many subjects covered in this book, highlighting the impor- tance of communication as an OB topic. Social media are now used by a significant pro- portion of people across all age groups (see Figure 9.3 for utilization rates by age).49

M A J O R Q U E S T I O N

How can social media increase my effectiveness at work and in my career?

T H E B I G G E R P I C T U R E

Employers are continually challenged to reap the benefits of social media while controlling

the costs. Your own knowledge and behavior are part of the solution. In this section, you’ll

expand your understanding of how to use social media productively, the cost of social media,

the effective use of e-mail, and ways to manage issues related to social media policies,

privacy, and etiquette. 

9.4 SOCIAL MEDIA AND OB

FIGURE 9.3 AGE DISTRIBUTION AT THE TOP SOCIAL NETWORKS

SOURCE: M. Hoelzel, “Social Network Demographics,” Business Insider, June 3, 2015, http://www.businessinsider.com. au/update-a-breakdown-of-the-demographics-for-each-of-the-different-social-networks-2015-6?r=US&IR=T.

18–24 25–34 35–44 45–54 55–64 65+

LinkedIn 14% 21% 22% 18% 16% 9%

45% 26% 13% 10% 6% 1%

28% 23% 17% 15% 7%10%

28% 25% 18% 13% 11% 6%

23% 26% 19% 15% 12% 4%

19% 22% 21% 18% 13% 7%

16% 25% 22% 18% 13% 70%

16% 22% 19% 18% 15% 10%

15% 26% 21% 17% 15% 7%Pinterest

Facebook

Twitter

Instagram

Tumblr

Vine

Snapchat

Google+

US Data, Users Aged 18 and over, December 2014

352 PART 2 Groups

These figures suggest that employers and managers are wise to utilize social media tools with employees of all generations. A human resource expert put it this way:

Used correctly, social media can benefit an organization. However, if not managed effectively, it can create many legal, financial, and personnel risks. Given the potential risks and benefits of social media in the workplace, it is critical for managers to develop policies and procedures governing its appropriate use.50

The same applies to you and other employees. Everyone needs to realize the benefits and avoid the pitfalls of social media. To do this, let’s begin our discussion with what experts and researchers say about the effects of social media on productivity.

Social Media and Increased Productivity A driving force behind the use of all forms of technology at work, including social media, is to boost productivity. The key for employees, managers, and employers is to harness the potential and enhance performance at the individual, group, and organizational levels. The following quotation articulates this argument:

[W]ork is becoming a place to collaborate, exchange ideas, and communicate with colleagues and customers. Your value as an employee will be determined not only by how well you perform your job but also by how much you contribute your knowledge and ideas back to the organization. The ways in which companies develop this culture of collaboration will become a significant competitive factor in attracting and engaging top talent in the twenty-first century.51

Social media is clearly a tool that can help both you and your employers realize these productivity benefits.

Employee Productivity Evidence is mounting that social media confers a host of benefits for employees, such as

• Increased job satisfaction and better work–life balance.52

• Performance and retention.53

• More creativity and collaboration.54

Two studies of thousands of employees even showed that those who used five or more so- cial networking sites had higher sales numbers than those who used only one to four.55 This implies that more is better for salespeople! While you should be careful about drawing broad conclusions from these findings, they are revealing.

Furthermore, if you think employees’ opinions matter, you’ll be interested in a study by Microsoft showing that 46 percent of employees across generations and industries felt social media tools would make them more productive at work.56

LinkedIn, for example, is far more than an online résumé-hosting site. It is currently the key professional networking tool for job search. Recent surveys reveal that as many as 92 percent of recruiters use social me- dia for hiring purposes, and, as Figure 9.4 shows, 87 percent use LinkedIn (55 percent use Facebook and 47 percent Twitter).57 This means that nearly every re- cruiter is using LinkedIn, and you likely use it your- self. The following Applying OB box provides guidance on optimizing LinkedIn for you.

Another productivity benefit of social media is that they make digital information searchable. This ca- pability can reduce the time employees spend trying to

FIGURE 9.4 PERCENT OF RECRUITERS WHO USE VARIOUS SOCIAL MEDIA

47%

55%

87%

200

Twitter

Facebook

LinkedIn

10060 8040

353Communication in the Digital Age CHAPTER 9

Applying OB

To use LinkedIn effectively you need to:

Build a Professional LinkedIn Profile. This is only the first step, but it is essential to your success.

∙ Focus all sections (summary and experience) to reflect your growth over time and your responsibilities in your current job. 

∙ Consider writing your summary and experience sections in the first person and telling a story instead of using bullet points. Describe what you’ve accomplished and what you can do for other employers. (Include the past but don’t dwell on it—include more about what you do today).

∙ Learn and use the appropriate keywords. LinkedIn’s search function is effective and recruiters use it extensively. Learn what they are looking for and be sure to include these words in your profile.

∙ Spend the time necessary. Although obvious, think of what you want to achieve with your LinkedIn profile. Also, think of your profile as a living web page, some- thing that evolves over time. Explain how your past experiences helped shape who you are today.58

Build a LinkedIn Network. Simply building a profile doesn’t mean recruiters (or any- body else) will view it. You need to actively and wisely build and engage your connec- tions. Some helpful pointers and etiquette follow: 

∙ Think in terms of quality, not quantity. It’s not a scoreboard. Make connections that are meaningful to you professionally. 

∙ Don’t invite people to your network blindly, and don’t accept invitations without first learning why they reached out and how the connection might be relevant.

∙ Connect beyond your current industry and professional sphere. Drawing on di- verse views is a key way to expand your own knowledge and grow.

∙ Use the personal note option for inviting others to connect. ∙ When inviting others, focus only on making the connection. Other business can

wait. ∙ Remember that LinkedIn can be a useful introduction, but actually meeting, when

possible, is a way to foster a more productive and personal relationship. 

Build a Reputation. You need to offer value to others, which in turn earns you trust and respect. This requires genuine thought and attention to what you post.

∙ Be a resource for others by liking (means “thanks”), commenting on (means you’re interested), or sharing (means you think others also will benefit) relevant informa- tion within your network.

∙ Always explain why you are sharing or liking content. ∙ Avoid controversy, criticism, and complaints. If you can’t resist doing this, then

don’t use LinkedIn. It can torpedo your reputation.

SOURCE: Adapted from T. Burriss, “Maximize the Value of LinkedIn by Connecting and Engaging,” T+D, March 15, 2016, https://www.td.org/Publications/Blogs/Career-Development-Blog/2016/03/Maximize-the-Value-of-Linkedin-by-Connecting-and- Engaging. See also T. Burriss, “How to Build an Eye-Catching LinkedIn Profile,” T+D, February 4, 2016, https://www.td.org/ Publications/Blogs/Career-Development-Blog/2016/02/How-to-Build-An-Eye-Catching-LinkedIn-Profile.

How to Optimize LinkedIn

354 PART 2 Groups

retrieve needed information by as much as 35 percent. What would you do with 35 per- cent more time in a day, month, or year?59 Finally, consider that many of social media’s benefits for employees translate into benefits for their employers.

Employer Productivity Companies of all sizes and industries believe in the benefits of social media. Procter & Gamble (P&G), for instance, spends more than any other com- pany on advertising, and it now devotes more than a third of its US marketing budget to digital media. Marc Pritchard, global brand officer, says, “Digital technology . . . is en- abling P&G to expand creativity with an unprecedented delivery machine that is con- stantly evolving. . . . This is why P&G is quickly shifting to a digital-first approach to building brands.”60 If deployed effectively, social media enable businesses to realize the many benefits outlined in Table 9.3.

Crowdsourcing  occurs when companies invite nonemployees to contribute to achieving particular goals and manage the input process via the Internet. Integra Gold Corp, a mining company based in Canada, illustrates the benefits of utilizing talent and re- sources outside the organization to meet goals. The company acquired a firm with mineral rights and six terabytes of geological surveys used to prospect for gold. Integra crowd- sourced the analyses of this data instead of hiring people and managing the work itself. It is offering a prize of $811,000 to whoever finds the next multimillion-ounce gold deposit.61

The OB in Action box describes how other well-known companies now use social media to innovate and solve problems using crowdsourcing.

TABLE 9.3 SOCIAL MEDIA BENEFITS FOR EMPLOYERS

Benefit Description

Connect in real time over distance

Employees, customers, communities, suppliers, prospective talent, and many others can communicate as needed and while work is being completed.

Collaborate within and outside the organization

Linking sources of knowledge is a means for realizing the potential of employee diversity and enhancing productivity. Social media is by definition a way of connecting people virtually, so its effective implementation benefits virtual teamwork.

Expand boundaries Social networks can become critical means for organizational innovation and effectiveness, allowing them to utilize knowledge, skills, and experience of people outside (not employed by) the organization.

SOURCE: Adapted from L. McFarland and R. Ployhart, “Social Media: A Contextual Framework to Guide Research and Practice,” Journal of Applied Psychology, 2015, 1653–1677.

GE Ecomagination Challenge is a crowd- sourcing effort designed to solicit help cre- ating the next-generation smart power grid. It is an innovation contest designed to foster collaboration with high-caliber entre- preneurs with useful ideas and solutions. The effort’s impressive results include: 

∙ 70,000 users across more than 150 countries.

∙ 3,844 ideas submitted.

Expanding Organizational Boundaries with Crowdsourcing at GE, Lego, and YOU

OB in Action

© Roger Wollenberg/UPI/Newscom

355Communication in the Digital Age CHAPTER 9

Costs of Social Media Lost productivity due to cyberloafing—using the Internet at work for personal use— is a primary concern for employers in their adoption of social media. Some studies put the cost at $85 billion per year and report that employees spend 60 to 80 percent of their time at work pretending to do actual or legitimate work.64 

How do employees waste time on social media? • 50 percent are talking on a cell phone or texting. • 39 percent are surfing the Internet. • 38 percent are on social media. • 23 percent are sending personal e-mail.65

Perhaps the biggest problem with such productivity losses is that employees rarely think about them. Have you ever thought you were cheating your employer by checking Face- book, sending a tweet, or booking a trip during work hours? Did you ever think the mes- sage you sent a friend about work might be shared and give a competitor an advantage? 

Then there is shopping online while at work. A survey by Careerbuilder found that on average 47 percent of workers planned to shop online. And it seems that the greater ac- cess you have to technology at work, the more likely you are to use it to shop—71 percent of IT workers said they were likely to shop online while at work.66

The following Problem-Solving Application regarding fantasy football highlights the magnitude of the problem.

∙ 80,000 comments logged. ∙ More than 120,000 votes cast. ∙ 12 projects received funds totaling $55 million.62

Lego uses crowdsourcing to help design new products. It reviews proposed de- signs three times a year, and people receive 1 percent of the toy’s net revenue if their design is selected.63

If you have sought recommendations for a restaurant, a new car, or a profes- sor on sites such as Yelp, Facebook, Twitter, or RateMyProfessor, you’ve used crowdsourcing too.

YOUR THOUGHTS?

1. Describe at least two ways you crowdsource and the sites you use. 2. Think of a service you use, or some element of your job, that you think would ben-

efit from crowdsourcing. Remember to focus on how others can help you solve problems, which involves more than simply soliciting other people’s opinions.

A Very Expensive Fantasy

Fantasy sports are a well-entrenched phenomenon. Tens of millions of people play, and many of them do so at work. Here are some statistics:67

1. The price tag for productivity lost to fantasy football was $16 billion in 2015. That’s $1 billion a week during the football season.

Problem-Solving Application

356 PART 2 Groups

Let’s explore the pros and cons of e-mail next. 

Make E-mail Your Friend, Not Your Foe E-mail is not only one of the most useful communication tools but also one of biggest drains on your productivity. Recent estimates suggest that  40 percent of white-collar workers spend at least three hours each weekday checking work e-mail.68 If we add in some amount of non-work e-mail, the time it consumes is truly immense! Most people acknowledge that e-mail is essential, but handling it effectively can make it your friend instead of your foe. See Table 9.4 for the benefits and drawbacks, and Table 9.5 for tips on managing e-mail.

2. The US Bureau of Labor Statistics estimates that employers should expect to lose approximately one hour of work per week for each employee who plays fantasy football.

3. Approximately 37.5 million fantasy football participants work full time.

That’s only one sport. Assume you own a business and know many of your employees play in a fantasy leagues. Does this change your attitude about access to and use of social media at work? What would you do?

Apply the 3-Step Problem-Solving Approach

Step 1: As a business owner, define the problem posed by employees playing fantasy football.

Step 2: Identify potential causes of the problem.

Step 3: As the owner, make your recommendations to remedy or at least reduce the problem defined in Step 1.

TABLE 9.4 E-MAIL: BENEFITS AND DRAWBACKS

Benefits Drawbacks

∙ Reduced costs of distributing information. E-mail allows information to be sent electronically, thereby reducing the costs of communicating with employees and customers.

∙ Wasted time and effort. E-mail can distract people from completing their work responsibilities.

∙ Increased teamwork. Users can send messages to colleagues anywhere in the world and receive immediate feedback.

∙ Information overload. The average corporate employee receives 171 messages a day, and 10% to 40% of these messages are unimportant.

∙ Reduced paper costs. An expert estimates these savings at $9,000 per employee per year.

∙ Increased costs to organize, store, and monitor. Systems are needed to protect privacy and preserve digital records. For instance, the Federal Rules of Civil Procedure require organizations to keep e-mail and other employment records for up to six years.

∙ Increased flexibility. Employees can access e-mail from anywhere.

∙ Neglect of other media. People unsuccessfully attempt to solve complex problems with e-mail instead of face-to-face, which would likely be more appropriate and effective. You can’t communicate everything (successfully) via e-mail.

SOURCE: C. Graham, “In-Box Overload,” Arizona Republic, March 16, 2007, A14; M. Totty, “Rethinking the Inbox,” The Wall Street Journal, March 26, 2007, R8; A. Smith, “Federal Rules Define Duty to Preserve Work E-Mails,” HR Magazine, January 2007, 27, 36; M. Totty, “Letter of the Law,” The Wall Street Journal, March 26, 2007, R10; and “The Top 10 E-Mail Courtesy Suggestions,” Coachville Coach Training, March 22, 2000, http://topten.org.content/tt.BN122.htm.

357Communication in the Digital Age CHAPTER 9

TABLE 9.5 E-MAIL: TIPS FOR MANAGING

Tip Description

Do not assume e-mail is confidential.

Employers are increasingly monitoring employees’ e-mail. Assume all your messages can be read by anyone.

Be professional and courteous. Delete long message streams, don’t send chain letters and jokes, don’t type in all caps (it’s equivalent to shouting), wait and consider before responding to a nasty e-mail, refrain from using colored text and background, don’t expose your contact list to strangers, and be patient if you must wait to receive a reply.

Avoid sloppiness. Use a spell checker or reread and edit your messages before sending.

Don’t use e-mail for volatile, complex, or highly personal issues.

Use a medium that is appropriate for the situation at hand.

Keep messages brief and clear. Use accurate subject headings and let the reader know what you want up front.

Save readers time. Type “no reply necessary” in the subject line or at the top of your message if appropriate.

Be careful with attachments. Large attachments can crash someone’s system and use up valuable time downloading. Send only what is necessary, and get receivers’ permission to send multiple attachments.

SOURCE: C. Graham, “In-Box Overload,” Arizona Republic, March 16, 2007, A14; M. Totty, “Rethinking the Inbox,” The Wall Street Journal, March 26, 2007, R8; A. Smith, “Federal Rules Define Duty to Preserve Work E-Mails,” HR Magazine, January 2007, 27, 36; M. Totty, “Letter of the Law,” The Wall Street Journal, March 26, 2007, R10; and “The Top 10 E-Mail Courtesy Suggestions,” Coachville Coach Training, March 22, 2000, http://topten.org.content/tt.BN122.htm.

Social Media Concerns and Remedies— What Companies and You Can Do Of course some employees waste time. This has been and always will be true. But when it comes to social media, approximately 36 percent of employers now block employees’ access to social media sites at work (up from 29 percent in 2012).69 However, evidence is growing that this strategy can backfire.

Be Careful about Blocking Access Banning access can damage employee morale and loyalty—potentially leading to even greater losses in productiv- ity. Some experts argue, and most em- ployees would agree, that small breaks during the workday help boost produc- tivity. Such breaks can take the form of going outside to get a breath of fresh air, talking with a colleague over a cup of coffee, checking personal e-mail or Facebook, or checking and sending tweets.70

If these reenergizing benefits of so- cial media breaks are not convincing

Companies must of course protect their own interests, such as lost productivity and legal liability. Many experts, however, warn against actually blocking employee access to social media or other websites. The costs could be larger than the benefits. They instead recommend companies create and implement other solutions. © Robin Lund/Alamy RF

358 PART 2 Groups

enough for you or your employer, consider other potential and undesirable results of the blocking policies:

• They could alienate employees. Young, old, or in between, many people are ac- customed to being plugged into social sites throughout the day. Blocking their ac- cess can be off-putting. Moreover, organizations can block access on company devices, but most people have smartphones, tablets, and other devices of their own. As a result, many employees continue their typical use of social media but simply do so on their own devices—still on company time.

• You can’t have it only one way. If employers expect employees to be connected and responsive 24/7 to work-related e-mails, such as those from managers, coworkers, clients, or suppliers, it seems only fair to also allow them to reasonably tend to their own business during work hours. This is especially true if employees work both within and outside prescribed hours (such as at home in the evenings or on weekends).

• Blocking suggests a lack of trust. As one tech business reporter put it: “Banning social media may send a message to your employees that you don’t trust them. . . . This can cause a sharp divide in the team atmosphere you want to create.”71 It is difficult to manage and influence others without trust, and one of the basic ways of gaining trust from others is to trust them first.

In 2016 alone, more than two dozen states either passed or had pending legislation to prevent employers from demanding passwords and access to employees’ social network- ing sites.72 Whether an organization will consider adopting such practices depends in part on leaders’ social media attitudes.

Assess and Manage Leadership’s Social Media Attitudes Consider the social media readiness of an organization to which you belong. Self-Assessment 9.3 helps you assess leadership’s attitude toward social media, such as:

• How supportive management is of creating communities. • How well the culture fosters collaboration and knowledge sharing. • How widely social media is used to collaborate.

With this knowledge you can determine how well your own attitudes fit with those of the organization, and it may even unveil opportunities for you to improve the organiza- tion’s readiness.

Assessing Social Media Readiness Please be prepared to answer these questions  if your instructor has assigned Self-Assessment 9.3 in Connect.

1. Which of the dimensions has the highest score?

2. What are the implications for employees/members?

3. What are the implications for the organization and its interactions with stakehold- ers other than employees/members?

4. Which dimension is the lowest?

5. Describe two things that could be done to improve the organization’s social me- dia readiness.

SELF-ASSESSMENT 9.3

If the attitudes you find are not as positive as you would like, have no fear. Attitudes can be changed. Favorable leadership attitudes open the door to developing and imple- menting productive social media policies.

359Communication in the Digital Age CHAPTER 9

Adopt a Social Media Policy Despite the pervasive use of social media, fewer than 50 percent of companies have an actual social media policy.73 If the costs and concerns noted above aren’t enough to motivate your employer to create a social media policy  that describes the who, how, when, and for what purposes of so- cial media use, and the consequences for noncompliance, consider what can hap- pen without such a policy. Do you recall the photos and videos of Taco Bell and Domino’s Pizza employees in disgusting acts with food? “These viral moments do more than turn stomachs,” writes business commentator Anthonia Akitunde. “[T]hey point to a troubling trend: employees abusing social media on the job to the detriment of the brand.”74

One way to help prevent such nightmares is to create, communicate, and enforce effective social media policies. The elements of an effective social media policy are outlined in Table 9.6.

The OB in Action box below describes the Coca-Cola Co.’s social media policy.

TABLE 9.6 EIGHT ELEMENTS OF AN EFFECTIVE SOCIAL MEDIA POLICY

Element Description

Create safe channels for employees to air their concerns before going online.

The key words here are safe and before. Conflicts happen, but managers and organizations should provide means by which employees’ concerns are reported and handled without retaliation so they don’t feel the need to take them to the Internet.

Clarify what is confidential. Clearly explain what information employees can and cannot share online. Providing an approval process for the release of information may help too.

Outline consequences for violations.

Make it known that employees can be held responsible for what they post (such as videos of undesirable behavior on the job or in company uniform), and list the consequences.

Designate a spokesperson for online policies.

You don’t want every employee fielding questions about company policies; identify a spokesperson(s) so interpretations and communications are consistent.

Discuss appropriate ways to engage others online.

It is typically a poor idea to have any and all employees responding to others’ comments about the company online. Instruct them to be polite and nonconfrontational, and then to notify the designated person to respond.

Explain what is considered illegal. It is illegal to divulge proprietary information and to violate trademarks and copyrights. The organization is responsible for educating employees on these matters.

Align social media policy with the organization’s culture.

Your company’s social media policy is a great place to reaffirm what you want your company culture to be, while conveying your stance on this serious topic.

Educate employees. It’s not enough to have a social media policy; it is necessary to educate and train people about it and to embed it in social media practices. (One of the authors, for instance, could not locate a social media policy, or a person responsible for it, at his university.)

SOURCE: Adapted from A. Akitunde, “Employees Gone Wild: Eight Reasons You Need a Social Media Policy TODAY,” Open Forum, August 15, 2013, http://www.openforum.com/articles/employee-social-media-policy/, accessed September 9, 2013.

360 PART 2 Groups

Coca-Cola Co. formulated its policies with the motive “to help empower our as- sociates to participate in this new frontier of marketing and communications, rep- resent our Company, and share the optimistic and positive spirits of our brands . . . we always remember who we are (a marketing company) and what our role is in the social media community (to build our brands).”75

1. Adhere to Coke’s Code of Business Conduct and Other Policies. All employ- ees, from the chairman to interns, must abide by our codes governing informa- tion protection, privacy, insider information, and disclosure.

2. You Are Responsible for Your Actions. Anything you post that can potentially tarnish the Company’s image will ultimately be your responsibility. We do en- courage you to participate in the online social media space, but urge you to do so properly, exercising sound judgment and common sense.

3. Be a “Scout” for Compliments and Criticism. If you encounter comments online you feel are important, then please forward them to the designated online media office (e-mail address included).

4. Let the Experts Respond to Negative Posts. If you see negative or disparag- ing comments online, please do not engage but instead forward these to those trained to address such concerns (e-mail address included).

5. Be Wise When Mixing Business and Personal Lives. “Our worlds intersect online. The Company respects the free speech rights of all of its associates, but you must remember that customers, colleagues and supervisors often have access to the online content you post. Keep this in mind . . .” as informa- tion intended for family and friends can be forwarded. “NEVER disclose non- public information of the Company, and be aware that taking public positions online that are counter to the company’s interests may cause a conflict.”

YOUR THOUGHTS?

1. What are two benefits you see in Coca-Cola’s social media policy? 2. What gaps do you notice, based on your experiences with social media at

work and what you’ve studied in this chapter?

Coca-Cola’s Online Social Media Principles

OB in Action

Privacy Any discussion of the effective use of social media by employees or their em- ployers must include privacy issues. People and companies have reputations, which are built over time and can be extremely consequential professionally. They can also be dam- aged in a variety of ways, with serious consequences including loss of employment or business, social stigma, embarrassment and stress, lost opportunities, and, of course, le- gal action. Many lawsuits now routinely include the content of online profiles, e-mail, instant messaging, videos, photos, and other information retrieved from social media to make the cases for and against individuals and organizations.76 

Social media privacy becomes even more elusive given that better than 60 percent of employees report they are connected to at least one coworker and over 40 percent with an immediate supervisor.77 About 77 percent of employees say they use social media at work, but only 36 percent say it is allowed. This means a large percentage of employees are likely ignoring whatever social media policies, and associated privacy guidelines, may exist.78  

About one-third of employees who use a mobile device for work said they “would quit if their employer could see their personal information.” Employees are especially

361Communication in the Digital Age CHAPTER 9

concerned about employers having access to personal e-mails and attachments, voice mail, text and instant messages, lists of apps on their devices, information in their mobile apps, and their location.79  

What can employers do? Sean Ginevan, a director at MobileIron, a mobile device management firm, recommends the following:

1. Communicate what personal information from mobile devices is accessed by the employer.

2. Be sure employees understand what is accessible depending on the operating system used on their device (Apple or Android).

3. Create and communicate clear and sensible policies regarding potential employer ac- tions regarding information on employees’ mobile devices.

4. Do all of this when employees are setting up their devices, which is when they are most likely thinking about and can do something about such matters.

5. Tell employees that anything on the company’s e-mail server is saved for legal purposes. 6. Use the available privacy controls.80

To emphasize the importance of privacy for employers, Ginevan says chief infor- mation officers “need to protect employees’ privacy as fiercely as they protect corporate security. . . . That goal can absolutely be achieved today.”81

What Can You Do to Protect Yourself and Your Personal Brand (Reputation)? To protect your own reputation, first consider the recommendations above and other things you’ve learned in this chapter. You also may be well served to keep the arenas of your life separate in cyberspace, at least to the extent possible. Stephanie Marchesi, senior partner and CMO of the marketing firm FleishmanHillard, was well known for maintain- ing four devices to segment her professional and personal worlds. She kept an iPhone and iPad for family and social uses and a BlackBerry and laptop for work. She also had sepa- rate e-mail accounts and calendars, so members of one world could not see into the other.82 Establishing and maintaining multiple accounts, and using discretion about what you post, can be quite a challenge. But think of the potential implications—your reputa- tion and your job!

If you don’t know what your company’s policy is, ask. One of the authors did so and was told by its IT director that the university knew which porn websites were being viewed at the fraternity houses. 

Social Media Etiquette Before leaving this section we want to raise the issue of “ap- propriate use.” Norms of acceptable social media behavior at school, work, and socially are evolving, and it pays to be mindful of them. 

Cellphones Because they are like extensions of our hands, cell phones are with us ev- erywhere, at dinner, at work, in class, in bed, and in the bathroom. Figure 9.5 shows re- sults of a recent survey. But before you read it, remember that just because X percentage of people think something is OK, that doesn’t mean it is OK.

Here’s a good test: The next time you pull out your phone, for instance, during dinner at a restaurant or when visiting with a friend, ask yourself, Is what I’m doing or looking at going to enhance my interaction with the other person here and now? If it isn’t, don’t risk being rude—put the phone away.

Videoconferencing Skype, Google Hangouts, and other services are growing in popu- larity every year. They provide far richer communication than texts, e-mails, or even phone calls. From an employer’s perspective they also save on travel costs. But effectively com- municating on camera is quite different from doing so in other media. Videoconferencing has its own code of conduct. A number of do’s and don’ts are outlined in Table 9.7.

Now let’s move beyond social media and learn about how to deliver killer presenta- tions, conduct crucial conversations, and manage up. 

362 PART 2 Groups

FIGURE 9.5 PEOPLE’S VARYING VIEWS OF CELL PHONE USE

SOURCE: http://www.pewresearch.org/fact-tank/2015/08/26/key-findings-about-etiquette-in-the-digital-age/.

At church or worship service

At the movie theater or other places where others are usually quiet

During a meeting

At a family dinner

At a restaurant

While waiting in line

On public transportation

While walking down the street

People Have Varying Views About When It Is OK or Not OK to Use Cell Phones

% of adults who believe it is OK or not to use a cell phone in these situations

Generally not OK Generally OK

96

95

94

88

62

26

25

23

4

5

5

12

38

74

75

77

TABLE 9.7 VIDEOCONFERENCING DO’S AND DON’TS

Do’s and Don’ts Explanations and Helpful Tips

DON’T type during the call. 

It’s distracting and shows you aren’t paying attention. If you must take notes related to the call, then do so on paper or hit the mute button.

DO make eye contact. It is difficult to see what’s on the screen while staring at the camera, so eye contact is necessary only when you are presenting material or speaking. (Tip: Move the video chat window near the computer’s camera.)

DON’T eat. If you wouldn’t bring your sandwich to the boardroom, then don’t eat during your videoconference.

DO discourage interruptions.

It can be difficult to avoid interruptions, depending on your workspace. But if you’re able, put a note on your door saying you are in a conference and please do not disturb. If you work in a cubicle or in an open space, write “on video call” on a piece of paper and hold it up if interrupted.

DON’T disconnect without notifying someone.

If you are going to the restroom during a group call, say you’ll be back in a minute. If you are disconnecting completely, say so. It is unproductive for everybody if someone is talking to you assuming you’re still on the call, only to learn you’re not.

DO include others. Don’t forget any of the people in remote locations during a group call. Better still, provide cues and opportunities for them to join in.

363Communication in the Digital Age CHAPTER 9

Some jobs require you to present regularly and others never. How well you present can greatly affect others’ perceptions of you and your professional opportunities. We devote this section to practical skills to help make you a more effective presenter. Improving your presentation skills is always valuable, given that relatively few people are truly at ease or actually enjoy speaking or presenting to a group. 

Presenting—Do You Give Reports or Do You Tell Stories? You should probably start by answering the question in the above heading. Reports are packed with data and information and can be exhausting in their detail. Stories, in con- trast, are short in all these elements but are rich in emotion and help the presenter connect with the audience.

As you learned earlier, different communication media are better than others for any given message. The challenge for you is to know what your audience wants and needs, and then to construct and deliver your presentation accordingly. It generally is more effective if you present your message more as a colorful story with emotion than as a detail-laden report. The people who organize the TED (Technology, Education, Design) talks have a five-step protocol they use to guide their presenters to deliver with impact.83

Step 1. Frame your story. Step 2. Plan your delivery. Step 3. Develop your stage presence. Step 4. Plan your multimedia. Step 5. Put it together.

Let’s consider these steps in more detail.

Step 1—Frame Your Story Think of your presentation as a journey and decide where you want to start and end. Consider what your audience already knows about your subject, start there, and quickly explain why it matters to you or why it should matter to them. Include only the most relevant details or points and try to bring them to life with examples.

M A J O R Q U E S T I O N

How can I increase my effectiveness using presentation skills, crucial conversations, and managing up?

T H E B I G G E R P I C T U R E

Presenting, crucial conversations, and managing up—master these communication skills, and

they will enhance your performance and career success throughout your life. These individual-

level process skills make you more effective when working with others and influence a host

of outcomes at both the individual and group levels in the Organizing Framework for OB.

9.5 COMMUNICATION SKILLS TO BOOST YOUR EFFECTIVENESS

364 PART 2 Groups

Don’t try to do too much. Don’t just skim over all possible points either, but instead pick the best and dive deeper into each of those.

Beware of jargon, boasting, and mind- numbing details. Plan to end your journey with a solution, or even with a question to spur audience engagement and give them something to think about afterward.

For example, you have learned about and ap- plied a 3-Step Problem-Solving Approach throughout this book. Perhaps your presentation might be structured similarly—what is the prob- lem, what are potential causes or explanations, and what is your recommendation for action.

Step 2—Plan Your Delivery There are three basic ways to deliver a talk:

1. Read it from a script. 2. Use bullet lists that outline what you will

cover in each section. 3. Memorize everything you wish to say and REHEARSE.

Reading generally is ineffective. You will almost certainly lose your connection with the audience, if you ever connect in the first place. (TED forbids presenters to read.) Memo- rizing can work, if your audience is expected to simply sit and listen, but it takes a tre- mendous amount of time and practice. Unless you have your presentation completely ingrained in your memory, your audience can easily realize you are not as prepared as you hoped. If you use the bullet list approach, be sure you know not only the content for each point, but also how you want to transition from one to the next.

Step 3—Develop Your Stage Presence Getting your story or message right is more important than the way you stand or whether you appear nervous. Nevertheless, beware of how much you move—not too much or too little.

If you’re really nervous, pay par- ticular attention to your lower body to prevent rocking or shifting from one leg to the other. Walking around is fine, if it is natural for you. But if it is not, then you may be well served to stand in particular spots for different lengths of time or when making cer- tain points. The nonverbal communi- cation pointers you learned earlier in this chapter are helpful too.

Your body aside, the most impor- tant element of stage presence is eye contact! Find a handful of friendly faces around the room and deliver your talk while looking them in the eyes.

We cannot learn about presenting without addressing public speaking head-on. The following Applying OB box provides suggestions. When combined with the TED protocol, it should help you overcome your ner- vousness and light up the room.

Amy Cuddy is a social psychologist who studies body language. She argues that the way we hold and present ourselves affects the way others perceive us and the way we perceive ourselves. Her TED Talk is one of the most frequently viewed online. © Craig Barritt/Getty Images

Former Microsoft CEO Steve Ballmer was famous for his explosive, sweat-drenched presentations at company meetings. He would race across the stage, wave his arms, and yell like a cheerleader. Although few employees at any rank or in any company would communicate in such a manner, many believed it was incredibly effective for Ballmer. It became a signature of his communication style and reflected his larger persona. © Adam Berry/Getty Images

365Communication in the Digital Age CHAPTER 9

Applying OB

As Jim Moore, press secretary and speech writer for the Obama White House, said, “You give speeches every day to family, friends, colleagues, and, yes, even to strang- ers. Your daily conversations are nothing more than mini speeches in casual clothes. If you can talk to one person, you can talk to an audience of thousands. Really.”84 

1. Remember they are rooting for you. The audience most often is on your side and hopes you give a good presentation, if for no other reason than that they don’t want to sit through a bad one. 

2. Know your audience. You don’t have to be an expert on your audience or know everything they know. However, know enough to make a few meaningful, audience-specific comments and show that you care and your insights are rele- vant for them.

3. Compliment the audience. Building on No. 2, make your audience feel special by acknowledging what they do and its importance. For instance, if talking to a group of executives, tell them they’ve worked very hard and accomplished a lot. Or, if their jobs are especially difficult and uncelebrated, such as nurses or teachers, acknowl- edge this and tell them how important their work is and how much it’s appreciated.

4. Be snazzy, not distracting. Your clothes, jewelry, and any other accessories should be neat and match your audience. Don’t wear a suit or dress to a construction site, or construction boots to present a keynote at a conference. Be sharp but don’t wear anything that will cause people to comment. You want to exude confidence but not generate fodder for the next TMZ episode.

5. Unshackle yourself. If possible, and it is most often possible, lose the podium. Too often presenters shackle themselves to the podium, which is a physical barrier between you and the audience and ties you to one spot. Have you ever seen an excellent presentation and thought it would have been better still if the speaker had stayed behind the podium? Of course not. 

6. Be funny if you can, but don’t try too hard. Everybody likes to be funny, and when it works and is appropriate it’s great, but when it doesn’t it can be disastrous. Don’t try too hard, but if you have something that you are confident will work with the audience, use it.

7. Be gracious. Thank the host, the audience, and the organization that invited you. Even if the content of your presentation will change their lives, it nevertheless is your privilege to have the opportunity to do so. Express your gratitude.

Adapted from B. Liu, “5 Simple Ways to Become a More Impressive Public Speaker,” Inc.com, June 30, 2015, http://www.inc. com/betty-liu/5-easy-ways-to-improve-your-stage-presence.html; and from J. Moore, “How Anyone Can Become a Good Public Speaker,” Time, April 1, 2015, http://time.com/3758692/become-good-public-speaker.

How to Dazzle the Crowd—Tips on Public Speaking

As for nervousness, there are many ways to help overcome this, and many of them you’ve learned in this book. For instance, what you learned about self-efficacy in Chapter 3 can be especially helpful, and preparation is a critical element in building your efficacy. But perhaps one of the most useful things you can do to overcome ner- vousness is to realize that people expect you to be nervous. Don’t make too much of it.

Step 4—Plan Your Multimedia Don’t feel compelled to use the latest and greatest technology, or any technology at all. But whatever you choose, keep it simple and don’t let it distract the audience. If photos or images are appropriate, use them. People respond differently to pictures and videos, which convey emotional content better than words.

366 PART 2 Groups

TABLE 9.8 10 TIPS FOR MORE EFFECTIVE POWERPOINT PRESENTATIONS

Tip Put It in Action

1. Write a script Figure out what you want to say—beginning, middle, and end—before trying to put it on slides. Too many people start with slides and then fill in content.

2. Show one thing at a time

The only thing on the slide should be what you are talking about. If you put multiple points on the slide, then people will always read ahead and not focus on what you’re saying.

3. Don’t paragraph Don’t put everything you want to say on a slide. No “big blocky chunks of text,” otherwise you will kill a room full of people—cause of death, terminal boredom poisoning.

4. Pay attention to design

Avoid the temptation to dress up your slides with cheesy effects and focus instead on simple design basics. Use simple font styles, sizes, and colors; place dark text on light backgrounds; and avoid clutter.

5. Use images sparingly

Some people think images are stimulating and others think they are distracting. Split the difference.

6. Think outside the screen

YOU are the focus when you’re presenting, no matter how interesting your slides are.

7. Have a hook Open with something surprising or intriguing to hook your audience. The best openers are often those that appeal to the audience’s emotions—wow them, scare them, surprise them.

8. Ask questions Questions engage the audience and pique their interest, so use them!

9. Modulate Speak as you speak to your friends rather than reading index cards. Keeping a lively and personal tone of voice can go a long way.

10. Break the rules Feel free to violate any of these rules if you think it’s a good idea. Breaking rules because you have a good reason is different from not following them because you didn’t know.

However, if you use video clips, try to keep them to 60 seconds or less to prevent losing people’s attention.

PowerPoint is widely used. As one business writer aptly described: “bad PowerPoint happens to good people and quite often the person giving the presentation is just as much a victim as the poor sods listening.”85 The tips in Table 9.8 are very helpful.

Step 5—Put It Together Be prepared far enough in advance; think weeks if possible, not days, hours, or minutes. If you practice in front of others, which is a good idea, be selective. Anybody in the practice audience role will feel compelled to give you feedback, but you need valuable feedback, not just any feedback.

Preparation aside, remember to focus on the framing and substance of your journey and don’t get too wrapped up in the other steps and details. If you don’t think you have a compelling story, go back to the drawing board and create one.

Lastly, be yourself. Use these steps as a guide and learn from them, but don’t try to copy somebody else.

Crucial Conversations “Crucial conversations  are discussions between two or more people where (1) the stakes are high, (2) opinions vary, and (3) emotions run strong.”86 Such conversations

SOURCE: Adapted from D. Wax, “10 Tips for More Effective PowerPoint Presentations,” Lifehack, November 24, 2012, http://www.lifehack.org/articles/technology/ 10-tips-for-more-effective-powerpoint-presentations.html, accessed October 7, 2013.

367Communication in the Digital Age CHAPTER 9

can and do occur in all arenas of your life—school, work, and socially. Examples of rel- evant occasions include:

• Ending a relationship. • Talking to a coworker or classmate who behaves offensively. • Giving the boss or a professor feedback. • Critiquing a classmate or colleague’s work. • Asking a roommate to move out. • Talking to a team member who isn’t keeping commitments. • Giving an unfavorable performance review.87

Recall what you learned in Chapter 6 related to feedback, because it also is very helpful with most crucial conversations. The consequences of these encounters can be enormous for your job and career. Handling difficult communications effectively can prevent prob- lems, motivate teams members, increase collaboration, and improve bottom-line results.88 

When confronted with high-stakes interactions, you have three choices—avoid them, face them and handle them poorly, or face them and handle them well. We’ll focus on the last one. But first let’s explore why people often do so poorly in crucial situations, and it will also serve as a bit of review of things you’ve learned already.

When It Matters Most, We Often Do Our Worst Joseph Grenny, who cowrote the book Crucial Conversations, said this: “When conversations turn crucial, most of us tog- gle between some form of silence or verbal violence: Either we withdraw from sharing our information or try to force it on others by raising our voice or overstating our point. Ironically, when it matters the most we do our very worst.”89 Our negative emotions (see Chapter 3) kick in, and the fight-or-flight response takes over.

Moreover, crucial conversations often happen unexpectedly, which means we typi- cally are unprepared. When this happens, again, negative emotions can dominate and self-efficacy decline. Knowledge on positive emotions and positive OB can help you in crucial situations. Specifically, a good way to prepare for crucial conversations is to foster your own positive state. Then you can use the STATE technique, described next, to con- duct your crucial conversations more effectively.

STATE: How to Be Effective When It’s Crucial The acronym STATE will help you address even the most difficult conversations with a plan or path to follow.

• Share your facts. Start with the least controversial, most persuasive elements that support what you want for yourself and for the relationship.

• Tell your story. Enhance what you want by describing what has happened, how you’ve arrived where you are, how you’d like to see it change, and why. It may help to add what you don’t want personally or for the relationship.

• Ask for others’ facts and stories. This is key to creating dialogue, which is essential if you’re to have a productive crucial conversation. Don’t talk at but instead talk with others. Approach all crucial conversa- tions as two-way exchanges. Don’t be accusatory, but instead simply describe the situation, the way you feel, and what you would like to see happen. Use “I” instead of “you.” 

Many of your important conversations with coworkers, friends, and classmates are full of emotions. Applying some of the communication skills and tools described in this chapter can help you improve the outcomes of crucial and high-stakes conversations. © Don Hammond/Design Pics RF

368 PART 2 Groups

• Talk tentatively. Keep in mind that you’re telling a story, not stating facts. The facts come first, then you can add “color” or describe the impact on you via your story. In other words, don’t pound the podium and talk like you’re “preaching” facts.

• Encourage testing. Make it safe for others to share their (opposing) views. Allow them to share or test their ideas, thoughts, and feelings. Don’t interrupt, steamroll, or intimidate. It is critical to maintain mutual respect during crucial conversations. One way to do this is to explain and focus on mutual purpose—what you both stand to gain. Be sure the other person respects you in order to avoid defensiveness (recall what you learned earlier in this chapter) and conflict. If it’s appropriate, apologize to get back on track.90

Managing Up You learned in Chapter 6 about more contemporary forms of feedback (such as 360 de- gree), and that knowledge is helpful here. We are going to build on that and on crucial conversations to give you some guidance on how to manage your boss.

Gauge Receptiveness to Coaching Many organizations now claim they believe in the merits of employee involvement and feedback, even upward feedback. Note that trans- lating these values into action requires skill. The place to begin is by assessing your man- ager’s receptiveness. Regardless of your organization’s policy or comments from senior leadership, if your manager is not receptive, you’re wise to put your efforts elsewhere. You can’t coach a boss who doesn’t want to be coached. To gauge receptiveness, you can:91

1. Learn your manager’s view of you coaching. What are his or her expectations? What are yours?

2. Explain what’s in it for him or her. 3. Ask for permission to provide coaching or feed-

back. For instance, “Would you mind if I share a different perspective, one that might help us solve the problem?”

4. Find out how best to deliver criticism. Learn where, when, and how your manager wants to hear criticism—in the moment, in private, via e-mail, face-to-face, or another way.

5. Ask for agreement and commitment. After the first two items in this list, confirm that your boss is interested.

What to Do Next If your boss is receptive to up- ward feedback, follow the steps in Table 9.9.  If your boss is not receptive, read the table anyway. It provides helpful insight for managing others and helping others manage you.

TAKE-AWAY APPLICATION

Planning a Crucial Conversation

1. Think of somebody with whom you need or want to have a crucial conversation.

2. Use STATE to guide your planning.

3. Schedule and have the crucial conversation. Then review the way it went using STATE to see how well you did and what benefits both parties gained.

A boss who is receptive to coaching is especially valuable. But be careful, don’t assume because you may appreciate coaching from your boss, that she or he will appreciate coaching from you. Gauge your boss’s receptiveness first. © PeopleImages/Getty Images RF

369Communication in the Digital Age CHAPTER 9

We conclude this section with words of wisdom from Dana Rousmaniere, a contribu- tor to the Harvard Business Review series on managing up: 

The most important skill to master is figuring out how to be a genuine source of help—because managing up doesn’t mean sucking up. It means being the most effective employee you can be, creating value for your boss and your company. That’s why the best path to a healthy relationship begins and ends with doing your job, and doing it well.92 

TABLE 9.9 HOW TO MANAGE UP

Steps Description

Step 1—Prepare your message.

Unlike crucial conversations that often happen in the moment, attempts to manage up or coach your boss are an agreed-upon arrangement that occurs over time. Therefore, use time to your advantage and prepare. ∙ Know what you want to accomplish, ∙ Support your points for your manager with examples, data, or

other evidence.

Step 2—Plan your delivery and tactics.

Plan your delivery of your message—the tone and choice of words that will most likely achieve your desired result. Role- playing is a very valuable practice tool—use it!

Step 3—Deliver. When conducting the coaching conversation, be sure you: ∙ Are sensitive. Your boss has feelings just like you, and just as

you don’t like to get hammered with comments about how horrible and disappointing you are, neither does your boss.

∙ Don’t generalize behavior. Speak to specific areas of your boss’s job, specific behaviors, and specific situations.

∙ Provide ideas or suggestions. Don’t introduce your ideas as if they are the only ones that will work, or use language like “you must” or “you should.”

Step 4—Follow up. 

Coaching and managing both consist of more than simply providing feedback. Follow up to see how your boss has been doing in the areas discussed. Also ask what else you can do to help him or her in the future.

SOURCE: Adapted from M. Rosenthal, “Constructive Criticism for Managers,” Training, July/August 2013, 64; and C. Patton, “Coaching Up,” Training, July/August 2013, 29–31.

TAKE-AWAY APPLICATION

Practicing My Managing Up Skills

Apply Table 9.9 to manage up.

1. Think of somebody who has authority over you, either at work, at school, or in another organization to which you belong.

2. Which step of the managing-up process do you think will be most difficult with the person identified in No. 1? Explain.

3. Which do you (and others) most often overlook when trying to manage up? Why?

4. How could this approach to managing up be improved? Are any steps missing? Explain.

370 PART 2 Groups

You learned that you can become a more effective communicator by understanding communication as a process that operates at all levels of the orga- nization. You learned about the differences and similarities between genders and generations, as well as the benefits and costs of social media. You also explored how the proper approach to com- munication can allow you to manage up to higher levels in the organization and how to prepare for crucial conversations. Reinforce your learning with the Key Points below. Then consolidate your learn- ing using the Organizing Framework. Challenge your mastery of the material by answering the Major Questions in your own words.

Key Points for Understanding Chapter 9 You learned the following key points.

9.1 BASIC DIMENSIONS OF THE COMMUNICATION PROCESS

• All communication involves a sender, mes- sage, and receiver.

• Noise has many sources and types and can interfere with communications.

• Choosing the appropriate medium is critical for effective communication.

• Media richness helps convey information and promote understanding. It is influenced by feedback, channel, type, and language source.

9.2 COMMUNICATION COMPETENCE

• Communication competence refers to an indi- vidual’s ability to effectively use communica- tion behaviors in a given context.

• Nonverbal communication is a component of effective communication and includes many potential elements, such as body movements and gestures, touch, facial expressions, and eye contact.

• Listening is the process of actively decoding and interpreting verbal messages. Four

common listening styles are active, involved, passive, and detached.

• The feeling of being attacked or threatened is the cause of defensive communication.

• Empathy, the ability to recognize and under- stand another person’s feelings and thoughts, is an important communication skill.

9.3 GENDER, GENERATIONS, AND COMMUNICATION

• Linguistic style is a person’s characteristic speaking pattern.

• Women and men communicate differently. Women are more likely to share credit and ask clarifying questions, and men are more likely to give blunt feedback and withhold compliments.

• Each generation has its own communication norms and preferences.

• It’s a mistake to generalize anything we know about communication and apply it to entire genders or generations.

9.4 SOCIAL MEDIA AND OB • Social media can increase employee and em-

ployer productivity. • The use of social media at work also has

many costs, some potentially significant. • E-mail can increase teamwork and flexibility and

reduce costs of paper and the distribution of information. But it also has costs: wasted time, information overload, and increased time and money costs to organize, store, and monitor. 

• Social media policies help outline what is ex- pected and what is forbidden. They also help guard employers against liability and undesir- able events.

• Organizations need to monitor and manage privacy in the digital space. Individuals must monitor and manage their personal brand (their reputation) and their employer’s.

• Mobile technology etiquette is evolving. Dif- ferent contexts and different technologies come with different norms and expectations.

What Did I Learn?

371Communication in the Digital Age CHAPTER 9

FIGURE 9.6 ORGANIZING FRAMEWORK FOR UNDERSTANDING AND APPLYING OB

© 2014 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors.

INPUTS PROCESSES OUTCOMES

Person Factors • Nonverbal communication • Active listening • Nondefensive communication • Empathy • Ethical behavior • Social media behaviors (an

individual employee) • Communication skills

Situation Factors • Choice of medium • HR policies (hiring and firing) • Social media practices

(managers and coworkers)

Individual Level • Communication

Group/Team Level • Communication

Organizational Level • Communication • HR policies (social media

policies)

Individual Level • Task performance • Work attitudes • Turnover

Group/Team Level • Group/team performance • Group satisfaction

Organizational Level • Accounting/financial

performance • Customer satisfaction • Innovation • Reputation • Legal liability

turnover. Communication also is related to group/ team performance, group satisfaction, and group cohesion and conflict. Finally, communication influ- ences organizational outcomes such as accounting/ financial performance, customer satisfaction, inno- vation, reputation, and legal liability.

Challenge: Major Questions for Chapter 9 You should now be able to answer the following questions. Unless you can, have you really pro- cessed and internalized the lessons in the chap- ter? Refer to the Key Points, Figure 9.6, the chapter itself, and your notes to revisit and an- swer the following major questions:

1. How can knowing about the basic communi- cation process help me communicate more effectively?

2. What key aspects of interpersonal communi- cation can help me improve my communica- tion competence?

3. How do gender and age affect the communi- cation process?

4. How can social media increase my effective- ness at work and in my career?

5. How can I increase my effectiveness using presentation skills, crucial conversations, and managing up?

9.5 COMMUNICATION SKILLS TO BOOST YOUR EFFECTIVENESS

• Effective presenters are more likely to tell sto- ries than give reports. It is helpful to frame your story, plan the delivery, develop stage pres- ence and multimedia, and put it all together.

• Crucial conversations are those between two or more people in which the stakes are high, opinions vary, and emotions run strong.

• Managing up is more effective if you gauge your manager’s receptiveness, ask permission to pro- vide feedback/input, prepare your message, plan your delivery and tactics, and follow up.

The Organizing Framework for Chapter 9 As shown in Figure 9.6, communication is a key indi- vidual-, group/team-, and organizational-level pro- cess. We explored a host of inputs, both person factors (nonverbal communication, active listening, empathy, communication skills, and social media behaviors) and situation factors (choice of communi- cation medium, HR policies, and social media prac- tices of your manager and coworkers). You learned that communication links to outcomes across the three levels of OB. At the individual level, communi- cation relates to task performance, work attitudes, citizenship behavior/counterproductive behavior,

372 PART 2 Groups

IMPLICATIONS FOR ME This chapter contains six practical implications for you. The first is that communication is a perceptual process, meaning that what we say is not always what people hear. Always be on the lookout for misinterpretations in your communications. Second, you can improve your communication competence by following the advice presented in Section 9.2. Third, miscommunication is likely to occur between men and women and across generations. Be sensitive to these differences and try to modify your communication accordingly. Fourth, the pervasiveness of social media means that to distinguish yourself, you need to be better than the rest. Learn how to use services such as LinkedIn like the pros; the time and effort will make a difference in your job and career. Fifth, learn your employer’s social media policies, and regardless of what you learn, you may be wise to keep your digital worlds separate. Make appropriate use of mobile devices; don’t be rude or embarrass yourself or others. Finally, you are always presenting when communicating. The only things that differ in a formal presentation are the number of people, the context, the objective, and the me- dium. These are skills—learn, practice, improve!

IMPLICATIONS FOR MANAGERS We point out eight practical implications that will benefit you as a manager. First, it is easy to encounter miscommunication because communication is a perceptual process. To over- come this, try paraphrasing and summarizing what others communicate to ensure you are getting the intended message. Second, your choice of communication medium needs to match the complexity of the situation. You can improve your communication by considering this requirement when choosing the best way to communicate with others. Third, be aware of the linguistic differences between men and women. Failure to appreciate these nuances can lead to inaccurate attributions and conclusions about others. Fourth, assess how social media can boost your productivity and that of those you manage. Learn specifically which forms help you and how. Also learn how workplace productivity is lost via social media. Then collaborate with your employees to generate policies that are both reasonable and legally defensible. Communicate these policies and expected practices. Fifth, get a handle on your e-mail as a way of boosting your productivity! Part of your solution may be to use other technology, but another part is certainly being aware of your own behaviors and us- ing discipline. Sixth, always be mindful of social media privacy. Seventh, learn about and build your skills related to crucial conversations; these are critical for your success when managing both down and up. Finally, model the communication behaviors, including use of social media, you expect from those you manage. Your own behavior is one of your most powerful means for influencing others.

373Communication in the Digital Age CHAPTER 9

Employees’ social media behavior can both help and hurt businesses’ efforts to build reputations with customers, foster employee engagement, and earn profits. Because of this, nearly every day we hear of another employee fired for inappropriate social media posts. These conflicts take place at the intersection of employer interests, employee rights, and the law. Let’s begin by briefly outlining what the law says.

NLRB AND THE LAW Determination of employee rights is primarily the respon- sibility of the National Labor Relations Board (NLRB), which largely relies for guidance on section 7 of the Na- tional Labor Relations Act (NLRA) of 1935.93 Yes, the law that governs most matters of social media at work is more than 80 years old. Section 7 allows employees to union- ize and/or act in concert to improve working conditions. One employment law expert described it this way: “Em- ployee social media communications that relate to work- ing conditions or unionization will often be protected even if they are offensive, obscene, or attack individual members of management personally.”94

EMPLOYEE INTERESTS Employees have issues. Some are completely their own and personal, such as bad attitudes and stressful life events, and some are largely the fault of their em- ployers, like unfair manager behaviors, draconian com- pany policies, counterproductive coworker behaviors and attitudes, and annoying customers. Whatever the sources of their concerns, employees also complain, sometimes on the phone, other times face-to-face, and now more often on social media.

The First Amendment of the Constitution gives ev- erybody the right to free speech, and the NLRA en- ables you and other employees collectively to improve working conditions or unionize.95 However, while you can rant about your employer, manager, coworkers, or customers all you want on the phone or at happy hour with your friends, there are some limits to your free- dom to post the same comments on social media. These limits are in part determined by employers’ rights to protect their business interests.

EMPLOYER INTERESTS The position of employers is pretty simple: They don’t want employee comments damaging the company’s reputation, costing it business, or causing legal

liabilities. Cyber security issues aside, a business’s rep- utation and relationships are often hard-won and re- quire considerable time, effort, and money to build.96 But all can be undermined when one negative post goes viral.97 If the intent is clearly to sabotage the busi- ness or steal proprietary information, most people and the law would agree that it is reasonable to create and enforce policies to protect against these possibilities.

Fewer people, however, agree when policies at- tempt to restrict social media comments that bad- mouth management, other employees, or customers or that discuss compensation and other policies with employees or others. Regardless of your own views, the law and a growing number of cases are showing that employers’ broad policies prohibiting such prac- tices are unwise and indefensible. Consider the follow- ing examples.

TRIPLE PLAY—YOU’RE OUT! Triple Play Sports Bar & Grill in Connecticut was made aware of an accounting error that caused employees to pay more taxes and scheduled a meeting to discuss the issue. But before the meeting, a former employee posted a complaint on Facebook: “Someone should do the owners of Triple Play a favor and buy it from them. They can’t even do the tax paperwork cor- rectly!!!”98 A current bartender responded with another derogatory comment about a manager, a comment that was subsequently “liked” by one of the cooks. The bartender and the cook were fired. Management cited Triple Play’s employee handbook:

“[W]hen Internet blogging, chat room discussions, e-mail, text messages, or other forms of com- munication extend to employees . . . engaging in inappropriate discussions about the company, management, and/or coworkers, the employee may be violating the law and is subject to disciplinary action, up to and including termination of employment.”99

What ultimately happened? The employees filed a com- plaint with the NLRB, which decided in their favor. First, the NLRB said the term inappropriate in the handbook was entirely too vague and open to interpretation by em- ployees.100 It also said the employee’s “like” response to another’s post was a form of “concerted activity,” which means the employee was agreeing with the view of an- other employee and cannot be punished for doing so.

PROBLEM-SOLVING APPLICATION CASE

What Can You Say About Your Employer on Social Media? Whatever You Want, Maybe

374 PART 2 Groups

But if a lone individual posts, that person may be in the wrong.104

3. Profanity isn’t necessarily prohibited, even if directed at an individual, especially if the same language is used and tolerated in that particular employer’s workplace without consequences.

4. If there is a reason for conflict, such as a proposed unionization vote or policy change, disagreement is to be expected, and voicing support or opposition is not an offense.

Assume you own a sports bar like Triple Play. Of course you want to protect its reputation with custom- ers, foster employee engagement, and earn profits. What would you do?

APPLY THE 3-STEP PROBLEM- SOLVING APPROACH TO OB Use the Organizing Framework in Figure 9.6 and the 3-Step Problem-Solving Approach to help identify in- puts, processes, and outcomes relative to this case.

Step 1: Define the problem.

A. Look first at the Outcomes box of the Organizing Framework to help identify the important problem(s) in this case. Remember that a problem is a gap between a desired and current state. State your problem as a gap, and be sure to consider problems at all three levels. If more than one desired outcome is not being accomplished, decide which one is most important and focus on it for steps 2 and 3.

B. Cases have protagonists (key players), and problems are generally viewed from a particular protagonist’s perspective. In this case you’re asked to assume the role of a business owner.

C. Use details in the case to determine the key problem. Don’t assume, infer, or create problems that are not included in the case.

D. To refine your choice, ask yourself, Why is this a problem? Focus on topics in the current chapter, because we generally select cases that illustrate concepts in the current chapter.

Step 2: Identify causes of the problem by using ma- terial from this chapter, which has been summarized in the Organizing Framework for Chapter 9 and is shown in Figure 9.6. Causes will tend to show up in either the Inputs box or the Processes box.

A. Start by looking at the Organizing Framework (Figure 9.6) and decide which person factors, if any, are most likely causes of the defined problem. For each cause, explain why this is a cause of the problem. Asking why multiple times is more likely to lead you to root causes of the problem. For

The board further explained that even though custom- ers learned of the comments, the effect was the same as if they had overheard a discussion between two employ- ees, which is not grounds for dismissal. Furthermore, the comments were not directed at customers, and thus no offense was committed. Finally, the intent of the commu- nication was to talk about workplace conditions, some- thing employees have the right to complain about.101

PIER SIXTY—UNDER WATER Pier Sixty is a New York City catering company whose employees were in the midst of attempting to form a union because of what they perceived as a pattern of bad behavior by management. The company opposed this action, but unionizing is employees’ legal right. Be- fore the union vote, a company director “harshly be- rated servers, in front of customers.” During a break, one of the servers “used his iPhone to post an expletive- laden message” blasting the director on Facebook that ended with, “Vote YES for the UNION!!!!!” (The post was quite profane and named the director, made com- ments about his mother and family, and called him a “loser,” among other things.) The post was visible to the employee’s Facebook friends, some of whom were also Pier Sixty employees. When word got back to management, the employee was fired. The reason? “His Facebook post violated company policy and was egregious, inappropriate, and possibly defamatory.”102

The NLRB decided in favor of the employee. “Be- cause the record showed that the work environment at Pier Sixty was permeated with hostile and offensive language, which the company regularly tolerated, the NLRB concluded that none of the factors weighed in favor of a finding that [the employee’s] comments were so egregious as to lose the NLRA’s protections. . . . [The employee] posted his comment in the midst of a contentious union election—when heated rhetoric should have been expected from both pro- and anti- union advocates—and ended his post with an express statement of union support. In addition, the record was replete with examples of employees using profane lan- guage without experiencing discipline. . .”103

GENERAL TAKE-AWAYS The above examples make clear that social media pol- icy alone will not solve a company’s challenges. But to help, here are some conclusions about (im)permissible social media comments by employees that have con- siderable support:

1. If a post is related to a union or some form of employee organizing, employee protections are strong.

2. If multiple employees are part of the exchange, it may be considered “concerted” and acceptable.

375Communication in the Digital Age CHAPTER 9

Step 3: Make your recommendations for solving the problem. Consider whether you want to resolve it, solve it, or dissolve it (see Section 1.5). Which recom- mendation is desirable and feasible?

A. Given the causes you identified in Step 2, what are your best recommendations? Use the material in the current chapter that best suits the cause. Remember to consider the OB in Action and Applying OB boxes, because these contain insights into what others have done that might be especially useful for this case.

B. Be sure to consider the Organizing Framework— both person and situation factors—as well as processes at different levels.

C. Create an action plan for implementing your recommendations.

example, do employee characteristics help explain the problem you defined in Step 1?

B. Follow the same process for the situation factors. For each ask yourself, Why is this a cause? By asking why multiple times you are likely to arrive at a more complete and accurate list of causes. Again, look to the Organizing Framework for this chapter for guidance.

C. Now consider the Processes box in the Organizing Framework. Social media policies and practices can be but are not necessarily a cause. Are any other processes at the individual, group/team, or organizational level potential causes of your defined problem? For any process you consider, ask yourself, Why is this a cause? Again, do this for several iterations to arrive at the root causes.

D. To check the accuracy or appropriateness of the causes, map them onto the defined problem.

LEGAL/ETHICAL CHALLENGE

Should Employers Monitor Employees’ Social Media Activity?

There are at least two sides to the question whether employers should monitor employees’ social media use. Employees have a right to the privacy of what they say, to whom, when, and through which channels (face-to-face, phone, or social media). Employers must also “be vigilant about ensuring that employees are not disclosing confidential or proprietary information through social media, or using it to harass other em- ployees or engage in otherwise unlawful conduct,” says employment law attorney Christin Choi.105 

Bolstering the argument for monitoring, Nancy Flynn, director of the ePolicy Institute, says:

It’s all too easy for disgruntled or tone-deaf employees to go on to social media and criticize customers, harass subordinates, and otherwise misbehave. Sometimes that can bring workplace tensions and complaints, sometimes it can damage a company’s reputation in the marketplace, and sometimes it can lead all the way to lawsuits or regulatory action.106

Consistent monitoring enables companies to catch problems early, get undesirable information off-line quickly, begin damage control, and promptly discipline employees.

In support of employee privacy, some argue that so- cial media monitoring often becomes a malicious fish- ing expedition, a disguised means of undermining or even terminating employees inappropriately, such as to settle personal grudges. Employees also have been fired for posting non-work-related content, such as re- ligious or political views or bikini contests. Privacy ad- vocates often concede that companies might be justified in snooping if they have a legitimate reason to do so, such as genuine suspicion of inappropriate con- duct. But even in these instances, they argue that it is appropriate to investigate only what employees do on company computers and networks, not their use of personal devices and personal accounts.107

If You Made Social Media Policy at Your Employer, What Would You Do? 1. Monitor all employees. Justify.

2. Never monitor employees. Justify.

3. Monitor selectively. Specify the conditions under which you would monitor, which employees, which devices, and with what frequency. 

4. Invent other options and explain.

10 Major Topics I’ll Learn and Questions I Should Be Able to Answer

10.1 A Contemporary View of Conflict MAJOR QUESTION: How can a contemporary perspective on conflict make me more effective at school, work, and home?

10.2 Conventional Forms of Conflict MAJOR QUESTION: What are some types of conflict and how can I manage them to my benefit?

10.3 Forms of Conflict Intensified by Technology MAJOR QUESTION: What can I do to manage work–family conflict and incivility to make me more effective at school, work, and home?

10.4 Effectively Managing Conflict MAJOR QUESTION: What can I do to prevent, reduce, or even overcome conflict?

10.5 Negotiation MAJOR QUESTION: What are some best practices for effective negotiation?

How Can These Skills Give Me an Advantage?

MANAGING CONFLICT AND NEGOTIATIONS

377

The Organizing Framework in Figure 10.1 summarizes the key concepts you’ll learn in this chapter. You’ll notice a large number of person factors, such as your personality, experience, conflict-handling styles, mindfulness, and civility influence the type, fre- quency, and intensity of conflict you have in all arenas of your life. Many of these same factors influence how you negotiate. You’ve also undoubtedly expect relationship quality, leadership, organizational climate, as well as a number of norms and practices to shape conflict and negotiations at work. The importance of these factors notwith- standing, our primary focus in this chapter is understanding conflict and negotiation processes themselves, and how they in turn impact nearly every outcome in the Orga- nizing Framework. This complexity and broad impact of conflict, in particular, high- lights the critical importance of managing conflict for your own satisfaction and performance at work.

FIGURE 10.1 ORGANIZING FRAMEWORK FOR UNDERSTANDING AND APPLYING OB

SOURCE: © 2014 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors.

INPUTS PROCESSES OUTCOMES

Person Factors • Personality • Experience • Skills and abilities • Conflict-handling styles • Values • Needs • Mindfulness • Ethics • Incivility

Situation Factors • Relationship quality • Leadership • Organizational climate • Stressors • Incivility • Alternative dispute resolution

practices

Individual Level • Conflict and negotiation • Emotions • Interpersonal skills • Perceptions • Performance management

practices • Trust • Communication

Group/Team Level • Group/team dynamics • Conflict and negotiation • Decision making • Performance management • Leadership • Communication • Trust

Organizational Level • Human resource policies and

practices • Communication • Leading and managing

change and stress

Individual Level • Task performance • Work attitudes • Citizenship behavior/

counterproductive behavior • Turnover • Career outcomes • Creativity

Group/Team Level • Group/team performance • Group satisfaction • Group cohesion and conflict

Organizational Level • Accounting/financial

performance • Customer satisfaction • Innovation • Reputation

Winning at Work Negotiating Salaries and Raises

What’s Ahead in This Chapter We continue our discussion of the group and team level in the Organizing Framework and address conflict and negotiation in this chapter. Conflict is an inevitable part of organizational life. We describe both positive and negative forms of conflict—yes, there are both. We also explore common forms of conflict at work, such as per- sonality and intergroup. Significant attention is given to work–life conflict and cyberbullying, problems created and intensified by Internet technology and social media. We then provide practical guidance on how to manage various forms of conflict, followed by an explanation of negotiation, including types of negotiations and ethical pitfalls.

honest and say: “I’m not sure my salary reflects mar- ket value, so I’m checking with colleagues to find out what the current salary range is in our field. Would you be willing to talk about compensation?” Assure them you’ll keep it confidential, and then, if they’re willing, start by giving them a range where your salary falls and asking them how it compares with theirs.

• Query former colleagues. Ask former coworkers what they think is an appropriate range for your job in a company of your employer’s size and in- dustry. It may help to keep the discussion in the third person: “What do you think is a competitive or appropriate salary for a solid performer doing X type of work in a company like mine (or a company like yours)?”

• Give to get. Another effective approach is to offer your salary and then ask: “Does that sound compet- itive with what you’re making or what your company offers?”

• Ask recruiters. One of the very best sources is re- cruiters who place people in jobs and companies like yours. Salary is almost always part of their dis- cussions. So, if you’re going to build out your net- work, adding a recruiter or two who will share such info can be extremely valuable. But you need the relationship first. It’s no use cold calling a recruiter and expecting him or her to answer your questions—that expertise is part of what recruiters get paid for!2

Experts offer this advice for getting the best compensation you can.

Negotiating Your Salary for a New Job • Know the market rate. Research what companies

are paying other employees with similar jobs in the same area. Glassdoor.com often can help.

• Know your own value. Can you justify asking for more than the market rate? If yes, then be prepared to justify this premium with compelling examples of your perfor- mance and accomplishments. Whether asking for pre- mium or not, it is always a good idea to focus on how you benefited your past or present employers.

• What’s in it for them? Of course, like everybody else you pursue particular jobs because of how they will benefit you. However, during interviews and negoti- ations for a new job you are best served by focusing on the ways you can benefit your new employer, help the hiring manager reach her goals, and what a positive impact you’ll have in work teams.

• Be honest. Don’t exaggerate your current or past pay, your actual value, or accomplishments.

• Don’t go first. Try to wait for the other person to name a number. If you feel you must say something first, then you might say you want to be paid the rate of a top performer with your qualifications. If you have to give an answer, give a range, not a specific dollar figure.

• Consider benefits, too. Some of the most valuable parts of your compensation package may be insur- ance, retirement savings, vacation time, or the abil- ity to work from home a certain percentage of time. Retirement may seem like eons away, but an em- ployer matching your 5 percent contribution to your 401(k) plan is like giving you an extra 5 percent of pay—without an immediate tax bite.

• Look at the long term. If you can’t get a big pay package, consider whether you can ask for some- thing else that will help your long-term career, for example, a chance to work on an important assignment.1

Negotiating a Pay Raise Preparation is critical. You need information, and the following are some valuable sources and techniques for acquiring it. • Ask current colleagues. Peers are the best but also

the toughest source. The best strategy is to be

378

379Managing Conflict and Negotiations CHAPTER 10

Because conflicts occur between people, a good place to begin is for you to learn about your own tendencies for conflicts with others. You likely believe you have relatively few and are easy to get along with, which may be true. However, even the most problematic bosses think so of themselves. Test your impressions of yourself by completing Self- Assessment 10.1.

M A J O R Q U E S T I O N

How can a contemporary perspective on conflict make me more effective at school, work, and home?

T H E B I G G E R P I C T U R E

Conflict is an ever-present part of your life and an important group-level process in the Orga-

nizing Framework. To help you better understand and manage conflict, we explore several

common causes of conflict at school and work. Then you’ll learn about what it means to have

too little, too much, and just enough conflict (the conflict continuum). We explain why not all

conflict is bad or dysfunctional; some forms are functional or desirable. Next, we describe

some desired outcomes of functional conflict.

10.1 A CONTEMPORARY VIEW OF CONFLICT

Interpersonal Conflict Tendencies Please be prepared to answer these questions if your instructor has assigned Self- Assessment 10.1 in Connect.

1. Does your score match your perception of yourself?

2. The assessment measures how well you get along with others and how they treat you; both are sources of conflict. If you were to improve the measure, what other factors do you think should be included?

SELF-ASSESSMENT 10.1

Conflict Is Everywhere and It Matters Conflict is a pervasive part of the human experience. Some surveys report that employees spend two or more hours per week, or one day per month, dealing with some type of con- flict at work. Not only is conflict time consuming, but employees also report many other undesirable consequences, such as

• 25 percent call in sick. • 24 percent avoid work-related events. • 18 percent quit. • 16 percent say they’ve been fired. • 9 percent attribute project failures to conflict.3 

Whether these statistics move you or not, you can safely assume that all forms of conflict at work are underreported. Due to these consequences, and the fact that conflict occurs both within and between levels in the Organizing Framework for OB, managing it effectively is essential for individual, departmental, and organizational effectiveness.

380 PART 2 Groups

However, it is important to realize conflict has both positive and negative conse- quences. The goal of this chapter is to help you understand how to avoid the negatives while also gaining from conflict’s positive outcomes. Let’s begin by defining conflict, describing the conflict continuum, and then explaining the difference between functional and dysfunctional conflict.

A Modern View of Conflict Conflict  occurs when one “party perceives that its interests are being opposed or negatively affected by another party.”4 The word perceives reminds us that sources of conflict and issues can be real or imagined, just like perceptions of fairness. A lack of fairness, perceived or real, is a major source of conflict at work. 

A Conflict Continuum Ideas about managing conflict underwent an interesting evolution during the 20th cen- tury. Initially, management experts believed all conflict ultimately threatened manage- ment’s authority, reduced productivity, and thus had to be avoided or quickly resolved. They later recognized the inevitability of conflict and advised managers to learn to live with it. Emphasis, nevertheless, remained on resolving conflict whenever possible. Be- ginning in the 1970s, OB specialists realized conflict had both positive and negative out- comes. This perspective introduced the revolutionary idea that organizations can suffer from either too much conflict or too little. Neither is desirable.

Appropriate types and levels of conflict energize people to move in constructive directions.5 The relationship between conflict intensity and outcomes is illustrated in Figure 10.2. The differences between types and levels of conflict lead to the distinction between functional and dysfunctional conflict discussed next.

Functional vs. Dysfunctional Conflict The distinction between functional conflict and dysfunctional conflict pivots on whether the organization’s interests are being served. Functional conflict,  commonly referred to as constructive or cooperative conflict, is characterized by consultative interac- tions, a focus on the issues, mutual respect, and useful give-and-take. In such situa- tions people often feel comfortable disagreeing and presenting opposing views. Positive outcomes frequently result. 

FIGURE 10.2 RELATIONSHIP BETWEEN CONFLICT INTENSITY AND OUTCOMES

SOURCE: C. G. Donald, J. D. Ralston, and S. F. Webb, “Arbitral Views of Fighting: An Analysis of Arbitration Cases, 1989–2003,” Journal of Academic and Business Ethics, July 2009, 1–19.

Positive

Neutral

Negative

Intensity

O u

tc o

m e

s

Too little conflict

Too much conflict

Appropriate conflict

HighModerateLow

Characterized by apathy, lack of creativity, indecision, and missed deadlines

Characterized by eroding performance, political infighting, dissatisfaction, lack of teamwork, and agression.

381Managing Conflict and Negotiations CHAPTER 10

Each of these factors is lacking in cases of dysfunctional conflict,  disagreements that threaten or diminish an organization’s interests.6 This danger highlights the valuable role of management, and your own actions, in determining whether conflict is positive. To effec- tively deal with any kind of conflict, we need to understand some of the common causes. 

Common Causes of Conflict Certain situations produce more conflict than others. Knowing the causes can help you and managers anticipate conflict and take steps to resolve it if it becomes dysfunctional. Table 10.1 lists many of the situations that tend to produce either functional or dysfunc- tional conflict. Which have happened to you?

Proactive managers look for these early warnings and take appropriate action. For example, we can sometimes reduce conflict by making decisions on the basis of majority approval rather than striving for a consensus. However, if conflict is unnoticed or allowed to continue, it can and does escalate.

Escalation of Conflict When conflict escalates, the intensity increases and often leads to cycles of provocation and counter-provocation. The conflicting parties then often replace meaningful exchange and debate with increasingly destructive and negative attacks, which are often more about undermining or hurting the other party than advancing one’s own interests.7 People then take positions that are increasingly extreme and hard to justify. Conflict escalation often exhibits these five characteristics:

1. Tactics change.  Parties often move from “light tactics,” such as persuasive argu- ments, promises, and efforts to please the other side, to “heavy tactics” that include threats, power plays, and even violence.

2. Number of issues grows. More issues that bother each party are raised and included in the conflict.

3. Issues move from specific to general. Small and specific concerns often become more vague or general and can evolve into a general dislike of or intolerance for the other party.

4. Number of parties grows. More people and groups are drawn into the conflict. 5. Goals change. Parties change their focus from “doing well” or resolving conflict to

winning and even hurting the other party.8

Which of the five characteristics are present in the following OB in Action box?

TABLE 10.1 SITUATIONS THAT COMMONLY PRODUCE CONFLICT

Incompatible personalities or value systems Inadequate communication

Overlapping or unclear job boundaries Interdepartment/intergroup competition

Competition for limited resources Unreasonable deadlines or extreme time pressure

Unreasonable or unclear policies, standards, or rules

Decision making by consensus (dissenters may feel coerced)

Organizational complexity (conflict tends to increase as the number of hierarchical layers and specialized tasks increases)

Collective decision making (the greater the number of people participating in a decision, the greater the potential for conflict)

Interdependent tasks (one person cannot complete his or her assignment until others have completed their work)

Unmet expectations (employees who have unrealistic expectations about job assignments, pay, or promotions are more prone to conflict)

SOURCE: Adapted in part from discussion in A. C. Filley, Interpersonal Conflict Resolution (Glenview, IL: Scott, Foresman, 1975), 9–12; and B. Fortado, “The Accumulation of Grievance Conflict,” Journal of Management Inquiry, December 1992, 288–303. See also D. Tjosvold and M. Poon, “Dealing with Scarce Resources: Open-Minded Interaction for Resolving Budget Conflicts,” Group & Organization Management, September 1998, 237–255.

382 PART 2 Groups

Since 9/11, heightened airline secu- rity has increased frustrations for both airline employees and passen- gers. Passengers have to abide by ever more rules that employees must enforce. For instance, on a flight from Europe to the United States, a simple passenger request escalated quickly. “Bill Pollock asked a flight attendant about a sign telling passengers not to venture beyond the curtain sepa- rating economy class from the rest of the plane,” The New York Times re- ported. “He wanted to stretch his legs and visit his wife seated on the opposite aisle, using the passageway behind the galley in the plane’s midsection. But when he questioned a flight attendant on the policy and began recording their conversation using his cell phone, the situation quickly escalated: The flight atten- dant grabbed his phone and nearby federal air marshals intervened.”

The marshals held him against the wall with his hands behind his back. Pollock said, “I wasn’t violent, I didn’t use four-letter words. All I did was ask this guy about the sign on the curtain and they flipped out.” Afterward Pollock wondered about his rights and the rules, such as being restricted to particular cabins and not just bathrooms, as well as the right to video/audio record flight crew. A spokesperson for the Federal Aviation Administration responded that there is no rule limiting passenger movement on planes, but “no person may assault, threaten, intimidate, or interfere with a crew member in the performance of the crew member’s duties.”

YOUR THOUGHTS?

1. What is your reaction? 2. Why do you think the situation escalated? 3. What could the flight attendant have done differently to prevent escalation? 4. What could the passenger have done differently to avoid escalation?

First a Question, Then a Major Altercation9 OB in Action

Heightened airline security since 9/11 has increased frustrations and conflicts for passengers and employees. © Jim West/Alamy

Why People Avoid Conflict Are you uncomfortable with conflict? Do you go out of your way to avoid it? If so, you’re not alone. Many of us avoid conflict for a variety of reasons both good and bad. Some of the most common are the following:

• Fear of harm to ourselves. • Fear of rejection. • Fear of damage to or loss of relationships. • Anger. • Desire not to be seen as selfish. • Desire to avoid saying the wrong thing. • Fear of failure.

383Managing Conflict and Negotiations CHAPTER 10

• Fear of hurting someone else. • Fear of getting what you want.10

This list is self-explanatory, except for the last item. It refers to people who, for per- sonal reasons, feel undeserving or fear the consequences of success and thus tend to sabo- tage themselves.

Of course, avoiding conflict doesn’t make it go away. It may continue or even esca- late. Moreover, avoiding conflict can cost you a promotion. Many otherwise qualified employees are passed over for management and executive positions because they avoid making tough decisions, confronting poor performance, or challenging weak or faulty ideas. This suggests that conflict-handling, not conflict-avoiding, skills are in high de- mand.11 Southwest Airlines took this to heart. 

Leaders wanted to shake up what they viewed as a culture of “artificial harmony” among staffers. The company now promotes middle managers to executive positions partly based on their ability to spark conflict among staffers, says Elizabeth Bryant, vice president of training. During a five-week training program, these high-potential managers learn to foster vigorous but respectful internal debates.12

This view is reinforced by noted management consultant Patrick Lencioni, who said: “The only thing worse than engaging in conflict is not to do so.”13

What is the alternative? The Applying OB box below provides useful suggestions. For our purposes, it is enough to become aware of our fears and practice overcoming them, as the rest of this chapter will show.

Applying OB

When you’re tempted to avoid conflict, you may be wise to do the following instead.

1. Stop ignoring a conflict. Ignoring or working around a conflict won’t make it go away and may cause further escalation. Instead, bring both sides together to ad- dress the issues.

2. Act decisively to improve the outcome. Delay only causes the problem, real or perceived, to fester. Addressing a conflict in short order can help unveil misunder- standings or simple oversights before they grow into something more or spread.

3. Make the path to resolution open and honest. Involve all relevant parties, collect information, and determine a desired outcome. Doing so helps resolve misunder- standings and focuses everybody on the end state instead of wallowing in the (alleged) offenses.

4. Use descriptive language instead of evaluative. Beware of accusations and judg- mental language. Both put people on the defensive and impede progress. Instead, focus on the problem (behaviors, feelings, implications) and solution rather than the perpetrator.

5. Make the process a team-building opportunity. If the problem affects the team, then it may be beneficial to approach the conflict and its solution as a team. Such resolutions may improve relationships in such a way that the team functions even better than it did before the conflict.

6. Keep the upside in mind. Effective conflict resolution creates “success momentum.” In other words, conflicts are signs along the road to the final and desired destination. Don’t get bogged down and lose sight of the ultimate goal or bigger picture.

Avoiding Conflict Makes It Grow14

384 PART 2 Groups

Let’s remind ourselves what we get for our conflict-solving efforts. After all, embrac- ing conflict or taking a more functional and constructive view can be difficult if not counterintuitive. What are the outcomes we seek?

Desired Outcomes of Conflict Management Conflict management is more than simply a quest for agreement, nor should it be a quest for victory. If progress is to be made and dysfunctional conflict minimized, we need a broader goal. An influential model of cooperative conflict outlines these three desired outcomes:

1. Agreement. Equitable and fair agreements are best. An agreement that leaves one party feeling exploited or defeated will tend to breed resentment and subsequent conflict.

2. Stronger relationships. Good agreements enable conflicting parties to build bridges of goodwill and trust for future use. Moreover, conflicting parties who trust each other are more likely to keep their end of the bargain they have made.

3. Learning. Functional conflict can promote greater self-awareness and creative problem solving. Like the practice of management itself, successful conflict han- dling is learned primarily by doing. Knowledge of the concepts and techniques in this chapter is a necessary first step, but there is no substitute for hands-on prac- tice. There are plenty of opportunities to practice conflict management in today’s world.15

We therefore encourage you, when possible, to look at conflict not as a war or a battle, but instead as an opportunity or a journey. Keep the following observation in mind for the balance of this chapter:

Conflict gives you an opportunity to deepen your capacity for empathy and intimacy with your opponent. Your anger transforms the “other” into a stereotyped demon or villain. Similarly, defensiveness will prevent you from communicating openly with your opponents, or listening carefully to what they are saying. On the other hand, once you engage in dialogue with that person, you will resurrect the human side of his/her personality—and express your own as well.16

TAKE-AWAY APPLICATION

Practicing Functional Conflict

1. Think of a conflict or a strained situation that you either haven’t addressed or have purposefully avoided.

2. Describe how you could apply suggestions 2, 3, and 4 from the Applying OB box above.

3. If the situation involves a team or a group of people, describe how you might use this as an opportunity for team building (suggestion 5).

4. Identify and focus on the upside (suggestion 6), because it will help motivate you to follow the other suggestions and prevent you from getting discouraged.

385Managing Conflict and Negotiations CHAPTER 10

As we discussed in the first section, opposition isn’t necessarily a problem. It can be a constructive way of challenging the status quo and improving behaviors, processes, and outcomes. New ideas by definition contrast with old ideas or ways of doing things. However, opposition becomes an issue if it turns into dysfunctional conflict and im- pedes progress and performance. Personality conflict and intergroup conflict can both cause a number of undesirable outcomes across levels of the Organizing Framework for OB.

Personality Conflicts Given the many possible combinations of personality traits, it is clear why personality conflicts are inevitable. How many times have you said or heard, “I just don’t like him [or her]. We don’t get along.” One of the many reasons for these feelings and statements is personality conflicts.  We define a personality conflict  as interpersonal opposition based on personal dislike or disagreement. Like other conflicts, personality conflicts often escalate if not addressed. Think of personality conflicts you’ve had at work or school. What were the consequences for you? The other person? Members of your team, department, or class? Did they escalate? If the source of a conflict really is personalities, it is particularly troublesome since personality traits are by definition stable and resistant to change.

Research shows that conflicts over work tasks can turn into personal conflicts and escalate into bullying.17 But they have other undesirable outcomes too, such as negative emotions related to particular coworkers and to work in general. If these feelings persist beyond work, employees can ruminate and fail to recover appropriately. The result can harm their health and non-work relationships.18

A particularly troublesome form of conflict that is too often attributed to per- sonalities is sexual harassment and other forms of discrimination. Such conf licts have nothing to do with personalities and are unethical if not also illegal.19 But the accused often attribute the target’s resistance and complaints to personality: “She’s too sensitive,” or “He can’t take a joke.” It is critically important to identify and remedy such conflicts.

M A J O R Q U E S T I O N

What are some types of conflict and how can I manage them to my benefit?

T H E B I G G E R P I C T U R E

You can probably think of many types of conflicts from your own life, and you likely have a

good idea what caused most of them. But in this section we focus on two of the most com-

mon and consequential types of conflict in organizations—personality and intergroup. The

first occurs at the individual level and the other at the group level. Understanding both types

will make you more effective at managing an extremely valuable group-level process in the

Organizing Framework.

10.2 CONVENTIONAL FORMS OF CONFLICT

386 PART 2 Groups

How to Deal with Personality Conflicts

Bill Gross is the billionaire investor long known as the bond king. Beginning in the early 1970s he worked at PIMCO and built a $2 trillion empire. His stern, domineering, “my way or the highway” approach caused many conflicts. But in recent years these conflicts with noted individuals within the firm, including then-CEO Mohammed El-Erian, became intolerable. El-Erian and others left, and Gross tried to fire more. Eventually the board fired Gross. The troubles didn’t stop there. Investors have pulled nearly $400 billion since Gross’s departure, and he is suing PIMCO for $200 million more. He now works just down the street at a competitor—Janus.20 © Patrick T. Fallon/Bloomberg/Getty Images

Kevin Reddy, the chair and CEO of Noodles & Co. Restaurants and former COO of Chipotle Mexican Grill, hired Dan Fogarty as chief marketing officer knowing Fogarty’s personality clashed with that of the company’s president, Keith Kinsey. (Fogarty and Kinsey had previously worked together at Chipotle.)

Reddy knew that Kinsey was analytical and pragmatic, while Fogarty was un- structured and creative. The CEO counted on and took advantage of their differ- ent personalities and heated debates. Reddy believed executives who challenge one another—rather than validating each others’ ideas—produced the best think- ing. He said, “I don’t mind if it gets a little bloody as long as it’s merely a flesh wound.”21

How successful his strategy proved is hard to say. But it is worth noting that in 2015 Fogarty left in March, citing “personal reasons,”22 and Kinsey left in June to become CEO of Portillo’s Hot Dogs.23

The CEO Who Planned a “Food Fight” OB in Action

387Managing Conflict and Negotiations CHAPTER 10

TABLE 10.2 HOW TO RESPOND WHEN AN EMPLOYEE EXPERIENCES A PERSONALITY CONFLICT

For The Employee For Third-Party Observers For The Employee’s Manager

1. Be familiar with and follow company policies on diversity, discrimination, and sexual harassment.

2. Communicate directly with the other person to resolve the perceived conflict (emphasize problem solving and common objectives, not personalities).

Do not take sides in someone else’s personality conflict.

Investigate and document the conflict; if appropriate, take corrective action (feedback or behavior modification).

3. Avoid dragging coworkers into the conflict.

Suggest the parties work things out for themselves in a constructive and positive way.

If necessary, attempt informal dispute resolution.

4. If dysfunctional conflict persists, seek help from direct supervisors or human resource specialists.

If dysfunctional conflict persists, refer the problem to the parties’ direct supervisors.

Refer difficult conflicts to human resource specialists or hired counselors for formal resolution efforts and other interventions.

Butt Your Heads Together and Fix the Problem24

At Black Butte Coal in Wyoming, a warehouse supervisor and maintenance manager’s conflict esca- lated to the point that their manager was going to fire both of them. Not only did they disagree and argue, but they also yelled at each other in front of other employees. It seemed that their goals for their respective departments, and the determination of each to meet those goals at the other’s cost, caused them to lose sight of the bigger picture and the way their efforts contributed to the outcome for the larger company. 

Amanda DeBernardi, the HR manager, stepped in to help. She put the two employees in a room with a blank piece of paper in front of each. She then gave each the opportunity to explain his position and issues, without interruption, while the other took notes.

Problem-Solving Application

Apply the 3-Step Problem-Solving Approach

Step 1: Define the problem in this case.

Step 2: Identify the potential causes.

Step 3: Make your recommendations. DeBernardi got you started on a potential solution, but what else would you do? You can build on her actions or take a different course. Explain.

Table 10.2 presents practical tips for both you and managers who are involved in or affected by personality conf licts. Best practices vary depending on the party. Steps 2 through 4 in the table show how to escalate your concern if the conflict is not resolved.

388 PART 2 Groups

Intergroup Conflict Conflict among work groups, teams, and departments is a common threat to individual and organizational effec- tiveness, as illustrated in the Organiz- ing Framework. The application of hydraulic fracturing (fracking) to ex- tract oil, for instance, has caused in- tense conf licts between local residents, local and state legislatures, energy companies, and environmental groups. In Florida, environmentalists are against fracking, local govern- ments and citizens are concerned about damage being done in their communities, oil companies are eager to drill, and all these concerns roll up to the state legislature, which must ul- timately decide what to do. In early 2016 the state considered legislation that would regulate fracking. The other parties then argued that the mea- sures the state is considering miss im- por tant elements and potential consequences.26 

Because so many parties can be involved, and because intergroup conflicts can each be so different, we differentiate them in terms of states and processes. 

Conflict States and Processes • Conflict states  are shared perceptions among team members about the tar-

get and intensity of the conflict. Targets can be either tasks (goals or ideas) or relationships.

• Conflict processes   are the means by which team members work through task and relationship disagreements.27

Recent research strongly supports what you likely suspect, that conflict processes, or the ways teams manage differences, matter. Much like the case in ensuring distributive and procedural justice, process always matters!28 So much so that a leading expert and her colleagues concluded this about conflict processes: “How teams interact regarding their differences are at least as important as conflict states, that is, the source and inten- sity of their perceived incompatibilities.”29 

The importance of conflict states and processes is commonly highlighted in mergers, such as those in the telecom industry where consumers, regulators, content providers, and telecom companies themselves often have opposing interests and views. When Comcast offered to buy Time Warner, for instance, consumers and regulators argued that this merger would result in less competition, fewer choices, and higher prices. Content pro- viders, companies that make TV shows and movies, were concerned that fewer providers would enable those that do remain to charge higher fees to distribute their content.30 The opposition won; the merger didn’t happen. We address conflict states (targets) in more detail in the next two sections of this chapter.

In-Group Thinking—“Us vs. Them” Cohesiveness—a “we feeling” that binds group members together—can be a good thing or a bad thing. A certain amount of

The exponential growth of Uber and other ride-sharing companies has caused tremendous conflicts between taxi drivers, as well as between ride-sharing companies and the local and federal officials who regulate transportation around the world. For instance, violent protests in Paris and other French cities by drivers opposed to ride sharing brought traffic to a standstill.25 The way Uber and other such companies deal with and resolve these conflicts will be critical to their future success. Some cities and countries have outlawed their services and others have restricted them. The road to this industry’s future expansion is not so smooth. © Marcio Fernandes/AP Photo

389Managing Conflict and Negotiations CHAPTER 10

cohesiveness can turn a group of individuals into a smooth-running team. Too much cohesiveness, however, can breed groupthink, because a desire to get along pushes aside critical thinking and challenges to existing or inferior ideas. The study of in-groups has revealed an array of challenges associated with increased group cohesiveness and in- group thinking. Specifically,

• Members of in-groups view themselves as a collection of unique individuals, while they stereotype members of other groups as being “all alike.”

• In-group members see themselves positively and as morally correct, while they view members of other groups negatively and as immoral.

• In-groups view outsiders as a threat. • In-group members exaggerate the differences between their group and other

groups, which typically leads them to a distorted perception of reality.31

Managers cannot eliminate in-group thinking, but they certainly should not ignore it when handling intergroup conflicts. Let’s explore some options for managers— and you.

How to Handle Intergroup Conflict How have you attempted to solve conflicts between a group of which you are a member and another group? While many techniques are successful in particular situations, re- search and practice support three specific approaches:

• Contact hypothesis. • Conflict reduction. • The creation of psychologically safe climates.

Making an effort to understand and appreciate differing company, industry, or cultural customs is an effective way to avoid conflicts and make all parties more comfortable. © Blend Images/Alamy RF

390 PART 2 Groups

Contact Hypothesis The contact hypothesis  suggests that the more members of different groups interact, the less intergroup conflict they will experience. Those interested in improving race, international, and union–management relations typically encourage cross-group interaction. The hope is that any type of interaction, short of ac- tual conflict, will reduce stereotyping and combat in-group thinking.

But research has shown this approach to be naive and limited. For example, a study of ethnic majority (in-group) and ethnic minority (out-group) students from Germany, Belgium, and England revealed that contact did reduce prejudice. Specifically, contact over time resulted in a lower desire for social distance and fewer negative emotions re- lated to the out-group. The quality of contacts mattered too, especially regarding equal status, cooperation, and closeness. It wasn’t enough simply to encounter members of the out-group (to just be introduced, for example). 

However, prejudice also reduced contact. Those in the out-group were more reluc- tant to engage with or contact the in-group. Contact had no effect on reducing prejudice of the minority out-group toward the majority in-group.32 One interpretation of these re- sults is that contact matters, high-quality contact matters more, but both matter the most from the in-group’s perspective.

Nevertheless, intergroup friendships are still desirable, as many studies document.33 But they are readily overpowered by negative intergroup interactions. Thus the top pri- ority for managers faced with intergroup conflict is to identify and root out specific negative linkages between or among groups. More specifically, focusing on the per- ceived security and quality of the interactions matters. If you and/or your managers can make the out-group feel there is nothing at stake (they are not being evaluated), they are more likely to feel secure and satisfied with the interaction. This reassurance can also reduce both groups’ prejudices about the other. We can achieve such benefits by sharing social interests or social events where the focus is not on work, particularly the out- group’s work.34

Conflict Reduction Considering this evidence, managers are wise to note negative interactions between members and groups and consider options for reducing conflict. Several actions are recommended:

• Eliminate specific negative interactions (obvious enough). • Conduct team building to reduce intra-group conflict and prepare for cross-

functional teamwork. • Encourage and facilitate friendships via social events (happy hours, sports leagues,

and book clubs). • Foster positive attitudes (empathy and compassion). • Avoid or neutralize negative gossip. • Practice the above—be a role model.35

TAKE-AWAY APPLICATION

Handling Intergroup Conflict

1. Think of an intergroup conflict in your own life. Your example should include a description of a group, team, or department of which you are or were a member, as well as the nature of the conflict state (task or relationship).

2. Then describe how the conflict was handled. Was it resolved?

3. Regardless of your answer to question 2, explain how one or more of the above recommendations could have been applied to reduce, eliminate, or even prevent the conflict described in question 1.

391Managing Conflict and Negotiations CHAPTER 10

Creating a Psychologically Safe Climate As we’ve discussed, conflict occurs at all levels in the Organizing Framework. This means the causes and remedies can also oc- cur at individual, group, and organizational levels. One such organizational-level cause and remedy is a climate of psychological safety. A psychological safety climate  repre- sents a shared belief among team members that it is safe to engage in risky behav- iors, such as questioning current practices without retribution or negative consequences.36 When employees feel psychologically safe, they are more likely to speak up and present their ideas and less likely to take disagreements personally. This interaction results in increased team creativity,37 less conflict within and between teams, and higher individual and team performance.38 Psychological safety climates also help improve employee turnover, safe work behaviors, and job satisfaction.39

How can you and your employers create or foster a climate for psychological safety? Here are three fundamental and widely applicable practices:

1. Ensure leaders are inclusive and accessible. 2. Hire and develop employees who are comfortable expressing their own ideas, and

receptive and constructive to those expressed by others. 3. Celebrate and even reinforce the value of differences between group members and

their ideas.40

Find out the level of psychological safety in one of your groups, teams, or organiza- tions by completing Self-Assessment 10.2. It’s a quick, accurate, and valuable way to get a sense of this important environmental characteristic. Knowing the level of psychologi- cal safety can help you understand why some conflicts occur and how effectively you can handle them.

Psychological Safety Climate Please be prepared to answer these questions if your instructor has assigned Self- Assessment 10.2 in Connect.

1. Identify a group at school or work of which you are a member. It helps if the one you choose has to deal with opposing views and make decisions. Complete Self-Assessment 10.2 focusing on this group.

2. Which items help you understand why the group deals with conflicts as it does?

3. Explain three things you and your group members can do to increase psycho- logical safety and reduce conflict.

SOURCE: Excerpted from A. Edmondson, “Psychological Safety and Learning Behavior in Work Teams,” Administrative Sci- ence Quarterly 44 (1999), 350–383. Copyright © 1999. Reproduced with permission of Sage Publications, Inc. via Copy- right Clearance Center.

SELF-ASSESSMENT 10.2

392 PART 2 Groups

Students, employees, and people everywhere have always experienced conflicts be- tween the various arenas of their lives, notably between work, school, and home. But historically, various activities and their demands were confined to the physical loca- tions in which they occurred—work happened largely at the office. Not anymore. Technology has blurred the old boundaries—and also extended mistreatment to every place and every arena. The Internet and social media are new and devastating tools for bullies and other bad actors. For these reasons we give special attention to these forms of conflict.

Work–Family Conflict Work–family conflict  occurs when the demands or pressures from work and family domains are mutually incompatible.41 Work–family conflict can take two distinct forms: work interference with family and family interference with work.42 For example, suppose two managers in the same department have daughters playing on the same soccer team. One manager misses the big soccer game to attend a last- minute department meeting (work interferes with family), while the other manager skips the meeting to attend the game (family interferes with work). Both kinds of con- flicts matter, because they can negatively affect many important outcomes in the Or- ganizing Framework and your larger life domain (see Table 10.3). As research accumulates, it is also becoming clear that work interfering with family is the far more frequent and consequential problem.43

What about you? What level of conflict do you think you experience between school and other domains of your life? Self-Assessment 10.3 will help you see such conflicts from the point of view of others, not just your own perceptions. It can also help you iden- tify which conflicts are the most and least serious, and this knowledge can assist you in deciding what to do about them.

M A J O R Q U E S T I O N

What can I do to manage work–family conflict and incivility to make me more effective at school, work, and home?

T H E B I G G E R P I C T U R E

We focus our discussion on two particular forms of conflict: work–family conflict and incivility.

You face demands at school and other arenas of your life—work, social life, and perhaps a

family—and these demands can compete with each other and cause conflicts for you. Such

conflicts, along with uncivil behavior or mistreatment, can have dramatic and undesirable ef-

fects on your personal health, well-being, opportunities, and other outcomes in the Organiz-

ing Framework.

10.3 FORMS OF CONFLICT INTENSIFIED BY TECHNOLOGY

393Managing Conflict and Negotiations CHAPTER 10

TABLE 10.3 NEGATIVE CONSEQUENCES OF CONFLICTS BETWEEN WORK, FAMILY, AND OTHER LIFE DOMAINS

Work Interferes With Family

Family Interferes 

Outcomes Linked to Life More Generally

Job satisfaction Marital satisfaction Life satisfaction

Intentions to quit Family satisfaction Health problems

Absenteeism Family-related strain Depression

Performance Family-related performance Substance use/abuse

SOURCE: Adapted from F. T. Amstad, L. L. Meier, U. Fasel, A. Elfering, and N. K. Semmer, “A Meta-Analysis of Work-Family Conflict and Various Outcomes with a Special Emphasis on Cross-Domain versus Matching Domain Relations,” Journal of Occupational Health Psychology, 2011, 151–169.

School–Non-School Conflict Please be prepared to answer these questions if your instructor has assigned Self-Assessment 10.3 in Connect.

1. What is your reaction?

2. Do any of your responses and sources of conflict surprise you?

3. Which do you think is greater, the social dimension (questions 1–6) or the cogni- tive dimension (questions 7–9)?

4. What can you do to prevent or reduce the conflicts you identified?

SOURCE: Adapted from S. R. Ezzedeen and P. M. Swiercz, “Development and Initial Validation of a Cognitive-Based Work- Nonwork Conflict Scale,” Psychological Reports, 2007, 979–99. Reprinted with permission of Ammons Scientific Ltd.

SELF-ASSESSMENT 10.3

Making many conflicts worse is the spillover effect. This means, for instance, that hostilities in one life domain can manifest in other domains.44 Because these and other consequences can be numerous and troublesome, researchers and managers alike have devoted extensive attention and effort to understanding and reducing conflicts and their spillover effects. From a practical perspective, it is helpful to think of balance.

Balance Is the Key to Reducing Conflict A survey asked employees to list the biggest factors that damage work–life balance:

The leading answer by a mile was “bad bosses”—defined as “demanding, overbearing, and mean.” Tied for second, constantly working beyond standard business hours and inflexibility in scheduling work hours and off time. A not-so-distant third were incompetent colleagues and long commutes.45

It is therefore no surprise that 46 percent of employees in another survey said work– life balance was the thing they valued most when looking for a new job (second only to salary, cited by 57 percent).46 Ideally, you will be able to avoid or remove conflicts com- pletely. But more often than not you will have to balance demands coming from the dif- ferent domains of your life. Here are some ideas to consider.

• Work–family balance begins at home. Case studies of successful executives reveal that family and spousal support is critical for reaching senior-level positions.47 This suggests that both men and women need help with domestic responsibilities if there is any chance of achieving work–family balance. 

394 PART 2 Groups

Sheryl Sandberg, chief operating officer of Facebook, moved the issue of work–life balance to the front pages with her celebrity and her book Lean In. She championed the belief that women can have it all, including rising to the C-suite in corporate America. But having it all, according to Sandberg, requires a husband or partner who can help balance the load. In her own book, Unfinished Business, Anne-Marie Slaughter, former Princeton dean and State Department official, agrees with Sandberg that women can indeed climb to the top rungs of corporate ladders. However, she claims that women can’t have it all unless they are superhuman, rich, or self-employed. The system needs to change—men need to have the same responsibilities as women and vice versa—in order for there to be balance and for the career trajectories of women to be similar to those of men.48 (Left): © Spencer Platt/Getty Images; (right): © Paul Morigi/Getty Images

A number of companies have taken work–life balance to another level. For in- stance, United Shore Financial Services in Troy, Michigan, requires that employ- ees work only 40 hours per week. Sure, plenty of companies talk about such limits, but it’s a reality at this mortgage wholesaler. Mat Ishbia, the CEO, claims the “firm 40” policy makes employees more efficient and focused when at work, knowing they must be completely unplugged when they leave. There is no after- hours e-mailing or coming in on weekends.

Ishbia also claims that since word about the policy has gotten out, the firm has attracted more talented employees than in the past. He describes the policy this way: “5:55 p.m. on a Friday is no different from 10:55 a.m. on a Tuesday—taking

At United Shore Financial—Give Me Only 40 or You’re Fired!50

OB in Action

• An employer’s family-supportive philosophy is more important than specific programs. Organizational culture must support the use of family-friendly pro- grams in order for employees to benefit from them. For instance, it’s not enough to simply provide child care; employees must also feel supported and comfort- able using it. The same goes for leaving work early to attend a child’s sporting event or recital.

• The importance of work–family balance varies across generations. A study of the work values of 16,000 adults of all ages suggests that organizations should consider implementing work policies targeted toward different generational groups.49 For example, flextime and compressed work programs can attract and retain both Gen Ys and Gen Xers, while job enrichment may be a more effective way to motivate baby boomers.

395Managing Conflict and Negotiations CHAPTER 10

Flex Space vs. Flextime and Your Supervisor Balance requires flexibility, which is a key aspect of many efforts to eliminate or reduce conflicts. That said, not all flexibil- ity is the same. 

Flex space,  such as telecommuting, occurs when policies enable employees to do their work from different locations besides the office (coffee shops, home, or the beach).

Flextime  is flexible scheduling, covering either the time when work must be completed (deadlines) or the limits of the workday (9–5, 10-4, or any time today).

Understanding the differences can help you better balance your own demands be- tween not only work and family, but school and the rest of your life too. At first you might think more is better—more flex space and more flextime will make you happier if not also more productive. Research shows that this is not true. There can be benefits to greater flexibility, but flex space in particular can end up further blurring the boundaries between work and other arenas of your life and consequently adding to conflicts.52 Flex, but beware. 

One final caution: The value of most flexible work arrangements can be undermined if your immediate supervisor isn’t supportive. Put another way, supportive policies mat- ter, but what good is a policy if you aren’t allowed to use it?53 Fully half of companies surveyed offer some sort of flexible work arrangements, yet the same companies report that only a third of employees utilize them.54

Now let’s turn our attention to a different category of conflict—incivility.

Incivility—Treating Others Poorly Has Real Costs Incivility  is any form of socially harmful behavior, such as aggression, interper- sonal deviance, social undermining, interactional injustice, harassment, abusive supervision, and bullying.55 Like other OB concepts, incivility is perceptual—it is in the eyes of the beholder.56 If you feel you’ve been treated poorly, then you’ve been treated poorly, and this feeling is what affects numerous outcomes across levels of the Organizing Framework.

Recent research reports that 98 percent of employees reported experiencing some form of incivility, and 50 percent said they had been treated rudely at least once a week!57

no breaks for Facebook or online shopping. But once the day is done, employees are off duty until the next morning.” Laura Lawson, the company’s chief people of- ficer, says this: “You give us 40. Everything else is yours.”51 The premise, sup- ported by research, is that everybody needs time to recover. More hours do not necessarily translate into more productivity. Some studies in fact show that any more than 48 hours of work per week results in a dramatic decrease in productiv- ity per hour.

United Shore’s practices are quite different from those of many companies trying to better integrate work and life and in the process often further blurring the lines between these two arenas and increasing conflict.

YOUR THOUGHTS?

1. What do you think are the benefits of United Shore’s “firm 40” practice for the firm?

2. What do you think are some of the likely challenges for the firm or its employees? 3. What would you most appreciate about a “firm 40” policy? 

396 PART 2 Groups

Table 10.4 describes common employee responses to incivility and their frequencies. Besides the obvious—that no one likes to be mistreated—experts on the topic describe the costs of incivility this way:

The costs chip away at the bottom line. Nearly everybody who experiences workplace incivility responds in a negative way, in some cases overtly retaliating. Employees are less creative when they feel disrespected, and many get fed up and leave.58

Even more shocking is the prevalence and impact of incivility in health care. For in- stance, hospital workers whose supervisors mistreated them were less likely to share knowledge and information, which diminished their team’s performance.59 Another study found that almost 25 percent of physicians said incivility led to patient harm, and nearly 75 percent of those physicians said bad behavior in their team caused medical errors, even contributing to patient deaths.60 

Finally, one estimate is that 13 percent of executives’ time at Fortune 1000 compa- nies is spent dealing with incivility. This equates to seven weeks per year!61 Now that you’re clear on the magnitude of the problem, let’s explore some causes and solutions.

Causes of Incivility It’s no surprise that both individuals and their employers can be the root cause of mistreatment at work. Figure 10.3 illustrates common causes of various forms of incivility.

Note that the causes, just like the outcomes, can occur at all three levels in the Organizing Framework. Also note that incivility is contagious, like emotions, and if unchecked it can escalate. If your boss is rude to you, then you are more likely to look for rude behavior in your interactions with others and respond accordingly (neg- atively). This may help explain why incivility has been shown to be catastrophic to teamwork, because it undermines collaboration and individual member perfor- mance.62 This means bad behavior is truly an organizational problem, even if it starts with a single individual.

Bullying Bullying occurs at multiple levels in OB. Recall our discussion of counter- productive work behaviors and bullying in Chapter 2, where the Winning at Work section and a Problem-Solving Application box addressed bullying from the target’s or individual’s perspective. We build on these here and explore the implications of bullying at the group and organization levels. Bullying is different from other forms of mistreat- ment or incivility in at least three ways.63

1. Bullying is usually evident to others. Bullies at work don’t have to push you down or take your lunch money, like they do in elementary school. But even when the bully- ing is less obvious and nonviolent, coworkers are commonly aware through either

TABLE 10.4 EMPLOYEES’ RESPONSES TO AND THE COSTS OF INCIVILITY AT WORK

48% intentionally decreased their work effort

47% intentionally decreased the time spent at work

38% intentionally decreased the quality of their work

63% lost work time avoiding the offender

66% said performance declined

25% admitted to taking frustration out on customers

12% said they left their job because of it

SOURCE: C. Porath and C. Pearson, “The Price of Incivility—Lack of Respect Hurts Morale and the Bottom Line,” Harvard Business Review, January–February 2013.

397Managing Conflict and Negotiations CHAPTER 10

gossip or other forms of communication (meetings, e-mail, and social media) that someone is being bullied.

2. Bullying affects even those who are NOT bullied. Research shows that employees who are simply aware of bullying of colleagues but are not themselves a target are more likely to quit their jobs. This means bullying has costs that extend well beyond the harm to the person being bullied.64 Simply witnessing or being aware that one of your colleagues is mistreated has negative effects on you.

3. Bullying has group-level implications. Because even those who are not targeted by bullies can be affected, bullying often negatively affects group dynamics and group satisfaction and performance,65 important processes and outcomes in the Organizing Framework.

Given the costs of bullying, what can you and employers do? Table 10.5 provides a collection of best practices from business and research.

Cyber Bullying and Harassment Advances in technology have changed the nature of conflict at school and work.66 The Internet and particularly social media have created new avenues and weapons for bullies at school, at work, and in our social lives. Many researchers now report that virtual bullying is more common than face-to-face bullying, although the two often co-occur.67 Worse still, both face-to-face and cyber bullying affect their victims in two ways. Not only do the uncivil acts directly harm the targeted person, but also the fear of future mistreatment amplifies this effect. Given this, what can you and managers do to avoid bullying and other forms of incivility? The practices described in Table 10.5 are a good start. But it is useful for you and your employer to take specific ac- tions to prevent and address virtual incivility (harassment and bullying) in e-mails and social media. Here are some ideas.

FIGURE 10.3 CAUSES, FORMS, AND OUTCOMES OF INCIVILITY AT WORK

SOURCE: Inspired by and adapted from R. Singleton, L. A. Toombs, S. Taneja, C. Larkin, and M. G. Pryor, “Workplace Conflict: A Strategic Leadership Imperative,” International Journal of Business and Public Administration 8 (2011), 149–156.

• Organizational justice— distributive, procedural, and interpersonal • Destructive leadership— autocratic (employee involvement actively dis- couraged) and laissez-faire (lack of interest in employees) • HR policies and procedures—unfair performance review process, lack of grievance process

Organizational Causes

• Stress • Decreased job satisfaction and performance • Post-traumatic stress disorder (PTSD) • Negative emotions (anger and fear) • Intentions to quit • Uncivil behaviors by others (sabotage and aggression) • Lower group cohesiveness and performance • Damaged organizational reputation

Outcomes

• Lack of character and ethics • Past experience as target of incivility • Sensitivity to injustice and harassment • Different goals • Incompatible personalities • Biases and stereotypes

Individual Causes

• Harassment • Aggression • Unfair treatment by managers and coworkers • Abusive supervision • (Cyber) Bullying

Forms of Incivility

398 PART 2 Groups

Brianna Wu is well known for her independent game development studio, Giant Spacekat, which has produced mobile games such as Revolution 60. But Wu also is known as the target of the now infamous online group Gamergate. As one reporter described it, “She came under attack by a vicious posse of cyber trolls intent on ruining her career, invading her privacy, destroying her reputation, and, as indicated by numerous threats, killing her.” The threats have been so severe and persistent that Wu needs a security detail and avoids putting her name on the programs of different events she is invited to attend. She has received no fewer than 108 death threats.68 Part of what makes her a target is that she is determined to develop and market “action-packed video games made for women, by women, starring kick-a$$ female characters,” in what has been and still is an industry dominated by male developers.69

© Joanne Rathe/The Boston Globe/Getty Images

TABLE 10.5 ANTI-BULLYING STRATEGIES FOR GROUPS AND ORGANIZATIONS

Develop a workplace bullying policy.

Encourage open and respectful communication.

Develop a clear procedure for handling complaints about bullying.

Identify and model appropriate ways for people to interact with colleagues.

Develop and communicate a system for reporting bullying.

Identify and resolve conflicts quickly and fairly to avoid escalation.

Identify the situations, policies, and behaviors likely to cause bullying or allow it to occur.

Train employees to manage conflict.

Establish and enforce clear consequences for those who engage in bullying.

Monitor and review employee relationships, with particular attention to fairness.

SOURCE: Adapted from H. Cooper-Thomas, D. Gardner, M. O’Driscoll, B. Cately, T. Bentley, and L. Trenberth, “Neutralizing Workplace Bullying: The Buffering Effects of Contextual Factors,” Journal of Managerial Psychology 28 (2013), 384–407.

399Managing Conflict and Negotiations CHAPTER 10

Policies • Create and enforce policies covering acceptable technology usage. • Ensure that company technology (computers and smartphones) cannot be used

anonymously. • Communicate expectations for e-mail and social media communications outside

work that affect the organization and its members.

Practices • Enforce your policies! • In communications, be wary of: • The use of bold or UPPER CASE lettering (denoting shouting) and underlining

and punctuation. • Messages that are mean-spirited. • Demeaning phrases. • Personal insults. • Avoid sending copies of e-mails related to conflicts to people who don’t need to be

involved—so as not to embarrass the recipient or escalate the conflict. • Think before you hit the send button (it’s a good idea to wait until the next day). • Take appropriate action when you become aware of “conflict-producing” e-mail.70

Victim, Witness, or Perpetrator? You’ve learned about various forms of conflict, as well as potential causes and solutions. Let’s conclude this section by having you assess not just your experience but also your actions. Completing Self-Assessment 10.4 can help you improve your own effectiveness.

Bullying Scale—Target and Perpetrator Please be prepared to answer these questions if your instructor has assigned Self- Assessment 10.4 in Connect.

1. Which three example items do you most commonly experience?

2. What do you think are the causes of these examples? Try to identify causes across individual, group, and organizational levels using your OB knowledge.

3. To what extent do your most common experiences of being bullied match those you most commonly engage in?

4. Describe some things that could be done to prevent or reduce these acts of bullying.

SOURCE: From T. Glomb, “Predicting Workplace Aggression: Reciprocal Aggression, Organizational, and Individual Responses,” International Journal of Organization Theory and Behavior 13 (2010), 249–291. Reprinted with permission. 

SELF-ASSESSMENT 10.4

Another way to be more effective and helpful when witnessing bullying is to take the perspective of the target. Consciously think about what it is like to be him or her, walk in his or her shoes, and experience the effects of being bullied. In a practical sense, perspective-taking can serve as a low-cost and highly effective intervention to help reduce many of the prejudices and bad behaviors often observed in work and school settings. You can also use it when mediating conflicts, because in the heat of the conflict most parties are so focused on themselves that they never think to consider the other’s view.

Remember that mistreatment has more victims than the actual target. Don’t be a si- lent bystander, but do your part to prevent and remedy various forms of incivility at school, work, and home.

400 PART 2 Groups

Programming Functional Conflict Have you ever been on a team or committee that got so bogged down in details and pro- cedures it accomplished nothing? Most of us have. Such experiences are both a waste of time and frustrating. To break out of such ruts, you essentially have two options:

1. Fan the fire and get more of the same. Managers can urge coworkers to hunker down and slog through—simply persist. While this approach may work, it can be unreliable (conflict can escalate) and slow.

2. Program conflict. Managers can resort to programmed conflict. Experts in the field define programmed conflict  as “conflict that raises different opinions regard- less of the personal feelings of the managers.”71 The challenge is to get contribu- tors to either defend or criticize ideas based on relevant facts rather than on the basis of personal preference or political interests. This positive result requires disciplined role-playing and effective leadership.

Two programmed conflict techniques with proven track records are devil’s advocacy and the dialectic method. Let’s explore each.

Devil’s Advocacy Devil’s advocacy gets its name from a traditional practice within the Roman Catholic Church. When someone’s name comes before the College of Cardi- nals for elevation to sainthood, it is absolutely essential to ensure that the person had a spotless record. Consequently, one individual is assigned the role of devil’s advocate to uncover and air all possible objections to the person’s canonization. In today’s organiza- tions devil’s advocacy  assigns someone the role of critic. Figure 10.4 shows the steps in this approach. Note how devil’s advocacy alters the usual decision-making process in steps 2 and 3 on the left-hand side of the figure.

The Dialectic Method Like devil’s advocacy, the dialectic method is a time-honored practice, going all the way back to ancient Greece. Plato and his followers attempted to identify truths, called thesis, by exploring opposite positions, called antithesis. Court sys- tems in the United States and elsewhere today rely on hearing directly opposing points of view to establish guilt or innocence. Accordingly, the dialectic method  calls for

M A J O R Q U E S T I O N

What can I do to prevent, reduce, or even overcome conflict?

T H E B I G G E R P I C T U R E

We extend your knowledge in this section by introducing a number of practical means for

dealing with a variety of conflicts. Specifically, we explore ways to program or create func-

tional conflict. You also will learn about various conflict-handling styles and when to use

them. We then explore how to implement alternative forms of dispute resolution (ADR). The

practical knowledge in this section will enable you to better manage conflicts and in turn

yield many important outcomes in the Organizing Framework.

10.4 EFFECTIVELY MANAGING CONFLICT

401Managing Conflict and Negotiations CHAPTER 10

managers to foster a structured dialogue or debate of opposing viewpoints prior to making a decision.72 Steps 3 and 4 in the right-hand side of Figure 10.4 set the dialectic approach apart from common decision-making processes.

Pros, Cons, and Practical Advice on Programmed Conflict It is a good idea to rotate the job of devil’s advocate so no one person or group develops an undeserved negative reputation. Moreover, periodically playing the devil’s advocacy role is good training for developing analytical and communication skills and emotional intelligence.

As for the dialectic method, it is intended to generate critical thinking and reality testing. A major drawback is that the goal of “winning the debate” might overshadow the issue at hand. The dialectic method also requires more skilled training than does devil’s advocacy. Research on the relative effectiveness of the two methods ended in a tie, although both methods were more effective than consensus decision making.73

FIGURE 10.4 TECHNIQUES FOR STIMULATING FUNCTIONAL CONFLICT: DEVIL’S ADVOCACY AND THE DIALECTIC METHOD

A devil’s advocate decision program The dialectic decision method

6 The decision is monitored.

5 The decision to adopt, modify, or discontinue the proposed course

of action is taken.

4 Any additional information

relevant to the issues is gathered.

3 The critique is presented to

key decision makers.

2 A devil's advocate (individual

or group) is assigned to criticize the proposal.

1 A proposed course of action

is generated.

6 The decision is monitored.

5 The decision to adopt either position,

or some other position, e.g., a compromise, is taken.

4 Advocates of each position present

and debate the merits of their proposals before key decision makers.

3 A conflicting counterproposal is generated based on di­erent

assumptions.

2 Assumptions underlying the proposal

are identified.

1 A proposed course of action

is generated.

SOURCE: From R. A. Casler and R. C. Schwenk, “Agreement and Thinking Alike: Ingredients for Poor Decisions,” Academy of Management Executive, February 1990, 72–73. Reproduced with permission of The Academy of Management, via Copyright Clearance Center.

402 PART 2 Groups

However, another study showed that devil’s advocacy produced more potential solu- tions and made better recommendations for a case problem than did the dialectic method.74

In light of this mixed evidence, you have some latitude in choosing a method for pumping creative life back into stalled deliberations. Personal preference and the role-players’ experience may well be the deciding factors in your decision. The important thing is to actively stimulate functional conflict when necessary, such as when the risk of blind conformity or groupthink is high.

Conflict-Handling Styles People tend to handle (negative) conflict in similar ways, referred to as styles. Figure 10.5 shows that five of the most common styles are distinguished by the combatants’ relative concern for others (x-axis) and for self (y-axis). The combinations of these two character- istics produce the conflict-handling styles called integrating, obliging, dominating, avoid- ing, and compromising.75

Integrating (also called problem solving): When using an integrating style,  inter- ested parties confront the issue and cooperatively identify it, generate and weigh alternatives, and select a solution.

Obliging (also called smoothing): If you have an obliging style,  you tend to show low concern for yourself and a great concern for others. Such people tend to minimize differences and highlight similarities to please the other party.

Dominating: Those with a dominating style  have a high concern for self and low concern for others, often characterized by “I win, you lose” tactics. The other party’s needs are largely ignored. This style is often called forcing because it relies on formal authority to force compliance.

Avoiding: With an avoiding style,  passive withdrawal from the problem and ac- tive suppression of the issue are common. We addressed the pitfalls of avoiding conflict earlier.

Compromising: The compromising  style is a give-and-take approach with a moderate concern for both self and others. Compromise is appropriate when parties have opposite goals or possess equal power.

Before you learn about the characteristics of these styles and the best situations in which to use each one, take Self-Assessment 10.5 to learn your own style. Then you’ll be able to see whether what you learn matches your style. Better still, you’ll know the situations in which your preferred style helps you and when it hurts you in handling conflict. For instance, wouldn’t you like to know when an avoiding style is most effective?

FIGURE 10.5 FIVE COMMON CONFLICT-HANDLING STYLES

Concern for self High Low

Low

High

C o

n ce

rn f

o r

o th

e rs

Dominating

Integrating Obliging

Avoiding

Compromising

SOURCE: From M. A. Rahim, “A Strategy for Managing Conflict in Complex Organizations,” Human Relations, 1985, 84. Reproduced with permission of Sage Publications Ltd. via Copyright Clearance Center.

403Managing Conflict and Negotiations CHAPTER 10

When to Apply the Various Conflict-Handling Styles Consistent with the con- tingency approach described throughout this book, conflict resolution has no “one style fits all” approach. Research and practice thankfully provide some guidance indicating which styles seem to work best in particular situations (see Table 10.6).

Preferred Conflict-Handling Style Please be prepared to answer these questions if your instructor has assigned Self- Assessment 10.5 in Connect.

1. What is your style? On the surface, before reading below, does this make sense to you? Why or why not?

2. Describe a conflict you’ve experienced in which your conflict-handling style helped you.

3. Describe a conflict in which your style didn’t serve you well. Explain why.

4. Which style do you think would have been best for that particular conflict?

SOURCE: The complete instrument may be found in M. A. Rahim, “A Measure of Styles of Handling Interpersonal Conflict,” Academy of Management Journal, June 1983, 368–376. Copyright © 1983. Reproduced with permission of Academy of management via Copyright Clearance Center.

SELF-ASSESSMENT 10.5

TAKE-AWAY APPLICATION

Reflecting on My Conflict-Handling Styles

1. Think of a conflict in your own life.

2. Which style best describes the way you handled the conflict? Was it the appropri- ate style?

3. Explain which style would have been most appropriate and why.

When to Avoid Pamela Valencia, an organizational development consultant and trainer to Fortune 500 companies, recommends avoiding when: 

You decide that the conflict has no value, and that you’re better off saving your time and energy for other matters. Additionally, this can be a good temporary solution if you need more time to gather facts, refocus, take a break, or simply change the setting of the conflict. However, be sure not to avoid people in your attempt to avoid conflict—don’t be evasive.76

Why Styles Matter Because conflict is so pervasive, it is no surprise that researchers and managers have both devoted considerable attention to the topic. Key points about conflict-handling styles follow: 1. Culture.  Conflict-handling styles are not just an individual-level phenomenon.

Departments and entire organizations can develop the same styles—integrating, dominating, and avoiding. And leaders’ own styles have the greatest influence in determining which style gets embedded in the group or organization. 

2. Results. Cooperative styles (integrating and obliging) improved new-product devel- opment performance between buyers and suppliers across several industries in Hong Kong. In contrast, uncooperative styles (dominating and avoiding) increased numer- ous types of conflicts and hampered new-product development. Compromising had

404 PART 2 Groups

TABLE 10.6 STYLES FOR HANDLING INTERPERSONAL CONFLICT AND THE SITUATIONS WHERE THEY ARE APPROPRIATE AND INAPPROPRIATE

Style Appropriate Inappropriate

Integrating 1. Issues are complex. 2. Synthesis of ideas is needed to come up

with better solutions. 3. Commitment is needed from other parties

for successful implementation. 4. Time is available for problem solving. 5. One party alone cannot solve the problem. 6. Resources possessed by different parties

are needed to solve their common problem.

1. Task or problem is simple. 2. Immediate decision is required. 3. Other parties are unconcerned

about outcome. 4. Other parties do not have problem-

solving skills.

Obliging 1. You believe that you may be wrong. 2. Issue is more important to the other party. 3. You are willing to give up something in

exchange for something from the other party in the future.

4. You are dealing from a position of weakness.

5. Preserving relationship is important.

1. Issue is important to you. 2. You believe that you are right. 3. The other party is wrong or

unethical.

Dominating 1. Issue is trivial. 2. Speedy decision is needed. 3. Unpopular course of action is

implemented. 4. Necessary to overcome assertive

subordinates. 5. Unfavorable decision by the other party

may be costly to you. 6. Subordinates lack expertise to make

technical decisions. 7. Issue is important to you.

1. Issue is complex. 2. Issue is not important to you. 3. Both parties are equally powerful. 4. Decision does not have to be made

quickly. 5. Subordinates possess high degree

of competence.

Avoiding 1. Issue is trivial. 2. Potential dysfunctional effect of

confronting the other party outweighs benefits of resolution.

3. Cooling-off period is needed.

1. Issue is important to you. 2. It is your responsibility to make

decision. 3. Parties are unwilling to defer. 4. Prompt attention is needed.

Compromising 1. Goals of parties are mutually exclusive. 2. Parties are equally powerful. 3. Consensus cannot be reached. 4. Integrating or dominating style is not

successful. 5. Temporary solution to a complex problem is

needed.

1. One party is more powerful. 2. Problem is complex enough to need

problem-solving approach.

SOURCE: M. A. Rahim, “Toward a Theory of Managing Organizational Conflict,” The International Journal of Conflict Management 13 (2002), 206–235.

405Managing Conflict and Negotiations CHAPTER 10

no effect on performance in these same situations.77 New-product development rela- tionships are increasingly important in the global economy. Give careful consider- ation to the styles you use when working with such partners.

3. Reduced turnover. Research with nurses showed that those with high levels of emo- tional intelligence were more inclined to use collaborative styles and less likely to use accommodating conflict-handling styles.78 Given the intense shortage of nurses in many parts of the world, turnover is a critical and top-of-the-mind issue for nursing managers and health care administrators alike. Therefore, reducing conflict (bully- ing) is an important and effective means for reducing turnover.

4. Contingency approach. No one style is best for every situation. Employees and managers are both well served to apply a contingency approach to conflict-handling styles.

Third-Party Interventions: Alternative Dispute Resolution Disputes between employees, between employees and their managers or employers, and between companies too often end up in lengthy and costly court battles. US businesses spend hundreds of billions of dollars per year on direct legal costs. But this number is puny when compared to indirect legal costs, such as opportunities not pursued due to liti- gation concerns, disclaimers, and extra testing. All such costs are ultimately passed on to consumers in the form of higher prices.79 

A more constructive, less expensive approach called alternative dispute resolution has grown rapidly in recent years. The benefit of alternative dispute resolution (ADR)  is that it “uses faster, more user-friendly methods of dispute resolution, instead of tra- ditional, adversarial approaches, such as unilateral decision making or litigation.”80

The Many Forms and Progression of ADR You may not realize it, but you al- ready know of many forms of ADR, such as peer review, arbitration, and mediation. We will discuss these and more in a moment. These techniques represent a progression of steps third parties can take to resolve organizational conflicts.81 ADRs have four general benefits over litigation:

1. Speed. Mediation, for example, often takes only a few hours and has a 70 to 80 per- cent success rate. This track record is in stark contrast to the months or even years litigation often requires, not to mention the numerous other costs.

2. Low cost. Research shows that ADRs generally cost 90 percent less than litigation. 3. Confidentiality. Because of the discovery process and other legal requirements,

confidentiality is limited in legal proceedings. However, ADRs often provide near- complete control over what’s disclosed and what’s not. Moreover, decisions of ADRs are rarely formalized like the outcomes of lawsuits, which means there is no record to be made public or to use as precedent in future conflicts.

4. Winning solutions. Courts rule based on the law, and their decisions are almost al- ways win or lose, with one party writing a check to the other. ADRs, in contrast, can often reach win–win solutions arranged by the parties themselves.82

The benefits of alternative dispute resolution are clearly acknowledged in the business world; 97 percent of Fortune 1000 companies use mediation (a form of ADR) for some purpose.83 Now that you know the benefits of ADRs, let’s learn about the various forms. Table 10.7 ranks them from easiest and least expensive to most diffi- cult and costly.

We close this section with a reminder. The time to consider the various forms of ADR is when a conflict first comes to light. Regardless of the issue, you are wise to evaluate likely costs and opportunities associated with conflict before it escalates, caus- ing legal action, fees, and anger to foreclose more functional or constructive outcomes.

406 PART 2 Groups

TABLE 10.7 DIFFERENT FORMS OF ALTERNATIVE DISPUTE RESOLUTION (ADR)

Form of ADR Description

Facilitation A third party, usually a manager, informally urges disputing parties to deal directly with each other in a positive and constructive manner.

Conciliation A neutral third party informally acts as a communication conduit between disputing parties. This is appropriate when conflicting parties refuse to meet face-to-face. The immediate goal is to establish direct communication, with the broader aim of finding common ground and a constructive solution.

Peer Review A panel of trustworthy coworkers, selected for their ability to remain objective, hears both sides of a dispute in an informal and confidential meeting. A decision by the review panel may or may not be binding, depending on the company’s ADR policy. Membership on the peer review panel often is rotated among employees.84

Ombudsman Someone who works for the organization, and is widely respected and trusted by his or her coworkers, hears grievances on a confidential basis and attempts to arrange a solution. This approach, more common in Europe than in North America, permits someone to get help from above without relying on the formal chain of hierarchy.

Mediation A neutral and trained third party guides the others to find innovative solutions to the conflict. To ensure neutrality, most organizations hired ADR qualified outsiders.85 Unlike an arbitrator, a mediator does not render a decision. It is up to the disputants to reach a mutually acceptable decision. The Equal Employment Opportunity Commission (EEOC) implemented mediation in the 1990s and cut the average time to resolution by 80 percent!86

Arbitration Disputing parties agree ahead of time to accept the decision of a neutral arbitrator in a formal courtlike setting, often complete with evidence and witnesses. Statements are confidential, and decisions are based on the legal merits of the case. Trained arbitrators, typically from outside agencies such as the American Arbitration Association, are versed in relevant laws and case precedents. In many instances, employee arbitration is mandatory for resolving disputes. Heated debate has occurred over the past several years, however, regarding mandatory versus voluntary arbitration. On the one hand, many employers have not reaped the time and cost savings promised by arbitration and now prefer to litigate. On the other, many employees feel arbitration unfairly benefits employers, who hire skilled arbitrators whose job it is to handle such disputes.87

407Managing Conflict and Negotiations CHAPTER 10

M A J O R Q U E S T I O N

What are some best practices for effective negotiation?

T H E B I G G E R P I C T U R E

Life is an endless series of negotiations. It therefore is valuable to better understand negotia-

tion and related strategies. We discuss different forms and tactics of negotiation in this sec-

tion because they are both the cause and remedy of many conflicts. And they can influence

outcomes across all three levels of the Organizing Framework.

10.5 NEGOTIATION

Negotiation  is a give-and-take decision-making process between two or more par- ties with different preferences. A common example is labor–management negotiations over wages, hours, and working conditions. Negotiation is even more important today given the increasingly complex and competitive workplace. More personally, you’ll nego- tiate many job salaries and promotions and other factors related to your own jobs and career. And you’ll be expected to accomplish more things, in more places, with more people, which increases the value of your negotiation skills.

Two Basic Types of Negotiation Negotiation experts often distinguish between two fundamental types of negotiation— position-based or distributive, and interest-based or integrative. Understanding the differ- ence has great practical value.

Position-Based vs. Interest-Based A distributive negotiation  usually con- cerns a single issue—a “fixed pie”—in which one person gains at the expense of another.88 This win–lose approach is arguably the most common type of negotiation and is characterized by dividing up the pieces of a pie. There is only so much pie to go around, and two (or more) parties negotiate over who gets how much or which parts. Haggling over the price of a car is a position-based or distributive negotiation. You have a particular price you want, and you get it only if the seller compromises on the price he or she desires.

However, many conflicts bring together a variety of interests (not just the price of a car), and each party in the negotiation values those interests differently. The out- come is no longer a fixed pie distributed among all parties. Instead, a host of interests are integrated into a mutually satisfying solution. Such scenarios call for integrative negotiation,  in which a host of interests are considered, resulting in an agree- ment that is satisfactory for both parties.89 This kind of interest-based negotiation is a more collaborative, problem-solving approach. As one group of researchers puts it, instead of dividing a pie, as in position-based negotiation, interest-based negotia- tions often generate win–win outcomes—one party gets the crusts and the other the fruit (the part each prefers). Interest-based negotiations may even lead to creative so- lutions. The parties may decide to build a pie factory together instead of negotiating over individual pies.90

Table 10.8 describes some key differences between conventional position-based ne- gotiation and the more collaborative interest-based process.

408 PART 2 Groups

Applying a Collaborative Interest-Based Approach The collaborative, interest-based approach is explicitly based on problem solving, and it can be applied between two or more individuals, between an individual and a group, or between two or more groups. The following protocol is followed by renowned negotiator Christina Merchant.91 

1. Define and frame the issue in terms of parties’ interests. 2. Explain the respective interests (listen, learn, and share). 3. Explore expanding the pie (create value rather than claiming it). 4. Create options. 5. Evaluate options in light of the interest described in step 1. 6. Choose the option that best meets the interest described. 7. Develop and agree on a plan of implementation.

Factors to Consider in All Negotiations Regardless of your negotiation approach, finding areas of common ground can be difficult. Successful negotiators are able to weigh multiple issues and gather information about which are most important to the other par- ties and why. Research and practice provide some helpful hints:

• Know who you are. Personality matters. Research shows that people with high levels of agreeableness are best suited for integrative negotiations, whereas those low in this personality characteristic are better at distributive negotiations.92 Why do you think this is?

• Manage outcome expectations. In most negotiations, each party has an expected outcome and compares it to the actual outcome.93 Skilled negotiators manage ex- pectations in advance of actual negotiations. For example, if two people paid $35,000 for a car, then the one who expected to pay $33,000 was disappointed and the one who expected to pay $37,000 was delighted. Similarly, managers will often

TABLE 10.8 KEY CHARACTERISTICS OF THE TWO FUNDAMENTAL FORMS OF NEGOTIATION

Position-Based Negotiation Interest-Based Negotiation

Adversarial Partner

Focus on winning Focus on challenge to be met

Acquire the most value Create value for all parties

Personal goal focused Solution focused

Impose or sell your own position Find mutual interests and satisfaction

Use salesmanship and manipulation Make honest disclosure of respective interests

Choose between relationship and achieving goals

Emphasize relationship and substance

Yield reluctantly to other positions/ interests

Be open and willing to yield

Outcomes are win–lose or compromise Win–win collaborative outcomes are possible

SOURCE: Adapted from K. Campbell and R. O’Leary, “Big Ideas for Big Problems: Lessons from Conflict Resolution for Public Administration,” Conflict Resolution Quarterly, Winter 2015, http://onlinelibrary.wiley.com/doi/10.1002/crq.21146/abstract.

409Managing Conflict and Negotiations CHAPTER 10

send out a message saying, “It’s been a tough year” in advance of annual reviews and salary discussions.

• Consider the other person’s outcome.94 Of course you negotiate for your own benefit. But it also matters how the other party fares—is he or she satisfied?

• Adhere to standards of justice.95 Not only do the outcomes need to be per- ceived as fair (distributive justice), but so too do the processes by which they were attained. For instance, nobody likes to be taken advantage of, such as by having incomplete information. Again, think of buying a new car. The dealer knows all the numbers, and despite the best information the web has to offer, you are still never as well informed.

• Remember your reputation.96 You may “win” today, only to foreclose oppor- tunities in the future. Put another way, winning at all costs often has significant costs!

Considering these factors can help you decide whether you should pursue a particular position (you win, they lose), or whether you’re better off reaching a collaborative, interest-based agreement that leaves both parties satisfied. 

Emotions and Negotiations Many people believe good negotiators show no emotion, like Roger Federer on the tennis court. But as you’ve learned, emotions are an integral part of the human experience and of almost everything we do. Negotiation experts and researchers acknowledge this and provide guidance on how to use emotions to your advantage. Remember that emotions are contagious. If you want the other party to be calm, creative, or energetic, consider showing these emotions yourself. 

Preparation is critical to effective negotiations. The following tips can help you pre- pare emotionally for an upcoming negotiation.

1. Identify your ideal emotions. How do you want to feel going into the negotiation? Why? Many people answer this question quickly and say, “Calm but assertive,” but

Many people say we are negotiating all the time and throughout our lives. Buying a car is one such instance. These transactions are excellent opportunities to apply your OB knowledge and improve your outcomes—more car for less money. © OJO Images Ltd/Alamy RF

410 PART 2 Groups

when probed further they reveal other, if not competing, emotions. The challenge is to realize which emotions will best suit your objectives, and be mindful of them while negotiating.

2. Manage your emotions. What can you do in advance to put yourself in the ideal emotional state? Promote positive emotions. Choose appropriately—meditation to calm you down or perhaps music that pumps you up. If you are ambushed or put on the spot, such as by an unexpected phone call or somebody stopping by your office, buy some time and say to your negotiating partner, “I just need to wrap up what I’m doing, and I’ll call you back in 10 minutes.” This will give you time to regain the ap- propriate emotional state.

Negotiating a pay raise or the price of a new car is stressful. But if you had Christopher Voss’s former job, you would be negotiating on behalf of the FBI for the safe return of hostages in many of the most unstable, war-torn parts of the world. That is an entirely different type of stress. Voss is therefore eminently qualified to teach us all something special about effective negotiations. He of- fers the following advice:

• Be likable! People are six times more likely to make a deal with someone they like.

• Confirm your understanding. Ask questions of the other side to be sure your perceptions of their position are accurate. 

• Let the other side go first. Regardless of how important the outcome is to you, you’ll benefit from learning the other parties’ interests. What is their posi- tion? What do they want? What challenges do they see? You’ll never have all the facts, but do what you can to learn what you can early in the process.

• Don’t make too much of body language. Look for all nonverbal cues, such as tone and volume of voice and facial expressions; sometimes they are quite telling. But don’t rush to conclude that folded arms or crossed legs mean resistance.

• Mind your emotions. Anger most often generates resistance and defensive- ness, which never help your cause. Anger can be used strategically, but be- ware of it and of other unintended and unproductive emotions. 

• Be ready to say, “That doesn’t work for me.” It is important to be willing to say no and walk away. Just be sure to do it gracefully; you don’t want to burn bridges unnecessarily. Says Voss, “If you’re not willing to say no, you’ve taken yourself hostage.”

YOUR THOUGHTS?

1. Which of Voss’s recommendations do you most often follow?  2. Which do you never use? Why? 3. What are two specific things you can do to be more likable during a negotiation? 4. Think of two questions you can use to confirm your accurate understanding of

the other’s position.

Take It from an FBI International Hostage Negotiator97

OB in Action

411Managing Conflict and Negotiations CHAPTER 10

3. Know your hot buttons. What can throw you off balance? Some people seem eter- nally patient, while others get frustrated easily. And some negotiators try to push your hot buttons as a deliberate tactic. Know your own tendencies and be sure to manage them appropriately.

4. Keep your balance. Everyone loses balance once in a while. How will you regain it if lost? Taking a break is a good idea. Stepping out, going to the restroom, or simply calling a “time-out” can provide a break in the action and enable you to regroup. These same tactics can redirect a negotiation that has gone in the wrong direction. You also may want to redirect to higher-level issues, especially if you are getting bogged down in details.

5. Identify your take-away emotions. How do you want to feel when you’re finished? Many people say, “Relieved,” which signifies the stress many of us feel while nego- tiating. Others say, “Satisfied,” which speaks more to performance. Whatever the case for you, set goals for emotions just as you do for other outcomes in negotiations (and in the Organizing Framework).98

TAKE-AWAY APPLICATION

Planning My Negotiations

Identify an upcoming negotiation or an existing conflict that you need to address.

1. Make a plan using the guidelines above.

2. What do you anticipate the benefits of the guidelines will be for the situation you chose?

3. After implementing your plan, reflect on the outcome. Which of the above tips were most helpful?

Do emotions affect position-based and interest-based negotiations differently? The answer appears to be yes. Recent research showed that expressing emotional ambivalence—not clearly positive or clearly negative—can be detrimental in position- based negotiations. The rationale is that it invites the other side to be assertive and take advantage of you. However, in interest-based negotiations, emotional ambivalence was shown to increase value creation. Being ambivalent, rather than clearly positive or nega- tive emotionally, tends to facilitate cooperation and allow you the opportunity to integrate the negotiators’ interests.99 

Nonverbal communications also help convey your emotions during negotiations. You can smile, laugh, or flinch in reaction to a first offer, for example. This signals to your counterpart that his or her proposal is outside your zone of possible agreement or ZOPA —the range of possible outcomes you are willing to accept.100 Be clear about your ZOPA regardless of the form of negotiation you choose. Now let’s close this section and chapter with a discussion of ethics and negotiations.

Ethics and Negotiations The success of negotiations is often influenced to a large extent by the quality of information exchanged. Telling lies, hiding key facts, and engaging in other poten- tially unethical tactics erodes trust and goodwill, both of which are vital in success- ful negotiations. Awareness of these dirty tricks can keep good-faith bargainers from being unfairly exploited. See Table 10.9 for a list and description of unethical nego- tiating tactics. These behaviors also need to be factored into organizational codes of ethics, and every employee from the top to the bottom of the organization must adhere to them.

412 PART 2 Groups

TABLE 10.9 QUESTIONABLE AND UNETHICAL TACTICS IN NEGOTIATIONS

Tactic Description/Clarification/Range

Lies Subject matter for lies can include limits, alternatives, the negotiator’s intent, authority to bargain, other commitments, acceptability of the opponent’s offers, time pressures, and available resources.

Puffery Among the items that can be puffed up are the value of one’s payoffs to the opponent, the negotiator’s own alternatives, the costs of what one is giving up or is prepared to yield, importance of issues, and attributes of the products or services.

Deception Acts and statements may include promises or threats, excessive initial demands, careless misstatements of facts, or asking for concessions not wanted.

Weakening the opponent The negotiator here may cut off or eliminate some of the opponent’s alternatives, blame the opponent for his own actions, use personally abrasive statements to or about the opponent, or undermine the opponent’s alliances.

Strengthening one’s own position

This tactic includes building one’s own resources, including expertise, finances, and alliances. It also includes presentations of persuasive rationales to the opponent or third parties (e.g., the public, the media) or getting mandates for one’s position.

Nondisclosure Includes partial disclosure of facts, failure to disclose a hidden fact, failure to correct the opponents’ misperceptions or ignorance, and concealment of the negotiator’s own position or circumstances.

Information exploitation Information provided by the opponent can be used to exploit his weaknesses, close off his alternatives, generate demands against him, or weaken his alliances.

Maximization Includes demanding the opponent make concessions that result in the negotiator’s gain and the opponent’s equal or greater loss. Also entails converting a win–win situation into win–lose.

SOURCE: From H. J. Reitz, J. A. Wall Jr., and M. S. Love, “Ethics in Negotiation: Oil and Water or Good Lubrication?” Business Horizons, May–June 1998.

As we’ve noted, conflict and negotiations are affected by and in turn influence many elements in the Organizing Framework. They can determine your personal satisfaction and performance throughout your professional life. Apply your knowledge of conflict and negotiation to realize its true value. 

413Managing Conflict and Negotiations CHAPTER 10

In this chapter you learned that by managing con- flict and applying sound principles in negotiation, you gain an advantage in working for better out- comes at work, school, and home, and across all levels of organizations. Reinforce what you learned with the Key Points below. Then consoli- date your learning using the Organizing Frame- work. Finally, challenge your mastery of this chapter by answering the Major Questions in your own words.

Key Points for Understanding Chapter 10 You learned the following key points.

10.1 A CONTEMPORARY VIEW OF CONFLICT

• Conflict occurs when one party perceives that its interests are opposed or negatively af- fected by another.

• Conflict can be either functional or dysfunc- tional.

• People avoid conflict for many reasons, but doing so can cause it to escalate.

• Positive outcomes of conflict often fit into three categories: agreement, stronger rela- tionships, and learning.

10.2 CONVENTIONAL FORMS OF CONFLICT

• Common forms of conflict are personality and intergroup.

• We can avoid or overcome personality con- flicts by communicating directly with the other party(ies), avoiding needlessly involving oth- ers, and, if necessary, pursuing help from su- periors or human resource specialists.

• Intergroup conflicts can be avoided or over- come if we distinguish between conflict states and processes, apply the contact hypothesis, and create a psychologically safe climate.

10.3 FORMS OF CONFLICT INTENSIFIED BY TECHNOLOGY

• Work–family conflict occurs when the de- mands or pressures from work and family do- mains are mutually incompatible.

• Work–family conflict can be addressed in many ways, such as by balancing demands between the different domains and implementing sup- portive employee policies and managerial practices, including flex space and flextime.

• Incivility (bullying and harassment) has nega- tive consequences not only for targeted em- ployees but also for coworkers who witness it.

• Cyber bullying is a particularly problematic form of incivility that must be monitored and ad- dressed by organizational policies and practices.

10.4 EFFECTIVELY MANAGING CONFLICT

• Functional conflict can be fostered using sev- eral approaches, such as programmed conflict, devil’s advocacy, and the dialectic method.

• Five common conflict-handling styles are inte- grating, obliging, dominating, avoiding, and compromising.

• Forms of alternative dispute resolution (ADR) include facilitation, conciliation, peer-review, ombudsman, mediation, and arbitration.

10.5 NEGOTIATION • Negotiation is a give-and-take decision-

making process involving two or more parties with different preferences.

• Position-based negotiation usually focuses on a single issue—dividing a “fixed pie”—in which one person gains at the expense of another.

• Interest-based negotiation seeks agreements that are better for both parties than they would have reached through position-based negotiation.

• Emotions and ethics affect any and all negotiations.

What Did I Learn?

414 PART 2 Groups

processed and internalized the lessons in the chapter? Refer to the Key Points, Figure 10.6, the chapter itself, and your notes to revisit and answer the following major questions:

1. How can a contemporary perspective on con- flict make me more effective at school, work, and home?

2. What are some types of conflict and how can I manage them to my benefit?

3. What can I do to manage work–family conflict and incivility to make me more effective at school, work, and home?

4. What can I do to prevent, reduce, or even overcome conflict?

5. What are some best practices for effective negotiation?

The Organizing Framework for Chapter 10 As shown in Figure 10.6, you learned that con- flict is an inevitable part of organizational life and serves as an especially important group/team- level process in the Organizing Framework. The way you manage conflict can influence outcomes across all levels of OB. You also learned that the process of negotiation is a valuable tool for pre- venting and managing conflict, as well as achiev- ing goals.

Challenge: Major Questions for Chapter 10 You should now be able to answer the following questions. Unless you can, have you really

FIGURE 10.6 ORGANIZING FRAMEWORK FOR UNDERSTANDING AND APPLYING OB

SOURCE: © 2014 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors.

INPUTS PROCESSES OUTCOMES

Person Factors • Personality • Experience • Skills and abilities • Conflict-handling styles • Values • Needs • Mindfulness • Ethics • Incivility

Situation Factors • Relationship quality • Leadership • Organizational climate • Stressors • Incivility • Alternative dispute resolution

practices

Individual Level • Conflict and negotiation • Emotions • Interpersonal skills • Perceptions • Performance management

practices • Trust • Communication

Group/Team Level • Group/team dynamics • Conflict and negotiation • Decision making • Performance management • Leadership • Communication • Trust

Organizational Level • Human resource policies and

practices • Communication • Leading and managing

change and stress

Individual Level • Task performance • Work attitudes • Citizenship behavior/

counterproductive behavior • Turnover • Career outcomes • Creativity

Group/Team Level • Group/team performance • Group satisfaction • Group cohesion and conflict

Organizational Level • Accounting/financial

performance • Customer satisfaction • Innovation • Reputation

415Managing Conflict and Negotiations CHAPTER 10

IMPLICATIONS FOR ME We highlight eight practical nuggets for you. First, realize that not all conflict is bad or should be avoided. Some amount of functional conflict is desirable and can help you develop as an individual. Be especially mindful of this if you run your own business or wish to do so someday. Conflict can lead to growth. Second, be sure to tend to dysfunctional conflict and don’t allow it to escalate, costing you jobs and relationships. Third, personality conflicts are almost certain to happen. Table 10.2 can be very helpful in dealing with them. Fourth, be mindful of work– school–family conflicts. The way you manage them can dramatically affect your personal fulfill- ment and flourishing in life. Do what you can to balance demands from the various arenas of your life, and look for companies that are also mindful of this and have family-friendly policies and leaders. Fifth, beware of the many forms of incivility at work. Don’t underestimate their causes and effects. Beyond what your employer requires through policies and practices, civil- ity, like ethical conduct, starts with the behavior of individuals. Table 10.5 can help clarify what to do. Sixth, use your knowledge of conflict-handling styles and your own preferences to be more effective when dealing with groups and teams. Table 10.6 is an excellent guide to which style to use given the situation. Seventh, continue to expand your knowledge and skill using interest-based negotiations. Doing so can help you avoid and overcome the resistance com- mon in position-based negotiations. You’re often better off to approach the other parties as partners than adversaries. Finally, the knowledge and tools in this chapter are essential if you hope to manage people effectively. Apply your knowledge and build your skills!

IMPLICATIONS FOR MANAGERS We provide seven practical steps for you as a manager. First, distinguish between conflict states and conflict processes. Doing so will make you more effective at avoiding and remedy- ing conflict as a manager. Second, managing intergroup conflict can make or break your own opportunities and successes. Perhaps the single best way to avoid such conflicts, as well as to deal with them, is to create a psychologically safe climate. Third, beware of the many forms of incivility at work. As a manager you are responsible for knowing what is happening and inter- vening and following up. Do not underestimate how destructive incivility is to individuals, your team, and your larger organization. Not only the targets suffer. Your own actions are the single most powerful tool you have. Don’t tolerate bad behavior. Use Table 10.5 as a guide. Fourth, utilize devil’s advocacy and the dialectic method to arrive at better decisions and be more in- clusive. Fifth, use your knowledge of conflict-handling styles and of your own preferences to become more effective when dealing with groups and teams. Table 10.6 is an excellent guide for which style to use in a given situation. Sixth, become familiar with the alternative dispute resolution choices and use the appropriate remedy (Table 10.7). Seventh, taking an interest- based approach to negotiating with those you manage, and more generally with those with whom you work, can improve their level of trust in you and thus boost your effectiveness.

416 PART 2 Groups

Last but not least, if the movement to boost mini- mum wages to $15 across the country succeeds, the burden will fall on the franchisees. McDonald’s decided to raise wages in all its corporate-owned restaurants to $1 above the minimum wage. The move was presumably intended to help keep up with similar wage hikes by Walmart and Target,107 with whom the company often competes for employ- ees. The problem? Corporate stores compete with franchisees too and don’t bear the costs outlined above. A wage hike will likely have a much smaller impact on the corporate-owned stores versus the franchisees.

IMPACT AND POTENTIAL CAUSES The franchise model has worked very well for McDonald’s and the majority of its franchisees. Rev- enues have exceeded expenses and many franchi- sees have become quite wealthy, which explains why many own multiple restaurants. However, fran- chisee satisfaction and performance have steadily declined. In 2015, for the first time McDonald’s closed more stores than it opened, and the level of same-store sales (a key performance measure) also declined. Franchisees and Wall Street analysts attri- bute much of the lackluster performance and conflict to poor corporate leadership and policies. Corporate leaders dictate menu items, pricing, and strategy to franchisees. The addition of McWraps, salads, yogurt parfait, and specialty coffees, for instance, were meant to compete with the likes of Chipotle, Burger King, Shake Shack, and Wendy’s, as well as to keep up with evolving customer tastes.108

Boosted sales is certainly a good outcome for the corporate arm of the company, given it takes a cut of all revenues, but franchisees argue that enough money isn’t left over for them. Some initiatives, like the dollar menu, are actually money losers for some franchisees, yet it is difficult not to offer them be- cause of national advertising that promotes them, not to mention pressure from regional and corporate representatives. Another franchisee provided an ex- ample. “One time our coffee price was a nickel over

BACKGROUND AND SCALE Sixty-nine million. That is the number of customers McDonald’s serves per day around the world! The company does a staggering volume of business. But it might surprise you that despite the brand’s global reach and incredible staying power, it is in the midst of a serious conflict with its other important customers—its franchisees. McDonald’s has 5,000 franchisees around the world who run 82 percent of the chain’s 36,000 restaurants, accounting for just under $30 billion or a third of the company’s total revenue and employing 90 percent of its employees. This means the average franchisee operates six to seven restaurants, and the company lives or dies by their performance.101

TROUBLE UNDER THE GOLDEN ARCHES The relationship between the company and its franchi- sees is very complicated and increasingly strained. While franchisees own their respective businesses, McDonald’s owns the land and buildings they use. That means the company is the landlord and has ulti- mate say over whether particular restaurants open or close. The company also largely dictates menu items, required equipment, and most other details, including pricing in many instances. (One franchisee said he controls the price of fewer than 20 of 100 menu items.)102

Franchisees must follow directions from the com- pany and pay an assortment of expenses and fees, such as rent of 15 percent of revenues, a royalty of 5 percent of revenues, and 5 percent of revenues for advertising.103 On top of this, various additions to the menu require new equipment. The McCafe coffee and espresso equipment can cost up to $20,000 per ma- chine, expanding grill space to accommodate all-day breakfast takes another $5,000, and installing a second drive-thru window can cost $100,000.104  A milkshake machine costs $20,000, and a new grill $15,000.105 While the corporation focuses on the res- taurants’ top line, operators worry about what’s left af- ter paying rent, payroll, royalties, and other expenses.106

PROBLEM-SOLVING APPLICATION CASE

What About McDonald’s Other Customers?

417Managing Conflict and Negotiations CHAPTER 10

identify inputs, processes, and outcomes relative to this case.

Step 1: Define the problem.

A. Look first at the Outcomes box of the Organizing Framework to help identify the important problem(s) in this case. Remember that a problem is a gap between a desired and current state. State your problem as a gap, and be sure to consider problems at all three levels. If more than one desired outcome is not being accomplished, decide which one is most important and focus on it for steps 2 and 3.

B. Cases have protagonists (key players), and problems are generally viewed from a particular protagonist’s perspective. In this case you’re asked to assume the role of CEO.

C. Use details in the case to determine the key problem. Don’t assume, infer, or create problems that are not included in the case.

D. To refine your choice, ask yourself, Why is this a problem? Focus on topics in the current chapter, because we generally select cases that illustrate concepts in the current chapter.

Step 2: Identify causes of the problem by using material from this chapter, which has been summa- rized in the Organizing Framework for Chapter 10 and is shown in Figure 10.6. Causes will tend to show up in either the Inputs box or the Processes box.

A. Start by looking at the Organizing Framework (Figure 10.6) and decide which person factors, if any, are most likely causes of the defined problem. For each cause, explain why this is a cause of the problem. Asking why multiple times is more likely to lead you to root causes of the problem. For example, do employee characteristics help explain the problem you defined in Step 1?

B. Follow the same process for the situation factors. For each ask yourself, Why is this a cause? By asking why multiple times, you are likely to arrive at a more complete and accurate list of causes. Again, look to the Organizing Framework for this chapter for guidance.

C. Now consider the Processes box in the Organizing Framework. Are any processes at the individual, group/team, or organizational level potential causes of your defined

what the advertising price was and the head of the McDonald’s region came in and he said: ‘You are over. You can’t do this.’ That was the first time he told us to sell our business.”109

Beyond the financial implications, many franchi- sees also feel various initiatives have eroded the McDonald’s brand, which makes “the promise of serving good-tasting food fast.” The company re- quires that any order be filled in 90 seconds or less, which many franchisees say is unrealistic for many (new) menu items. These standards will be put to the test yet again with the “Create Your Taste” initiative, which allows customers to personalize their burgers. One longtime but now former franchisee, Al Jarvis, said in an interview that he “loves the taste, but the complexities of making it came to epitomize his disil- lusionment with McD’s. ‘The service times went up because of the expansion of the menu . . . I think they went a little overboard. When I would . . . see cars backed up at the drive-thru my stomach would just knot up. The people were different, the company was different. It became very frustrating . . . I wanted to get the hell out.’” And he did.110

There is evidence to support Jarvis’s concerns. The American Customer Care Satisfaction Index Restaurant Report for 2015 ranked McDonald’s dead last among all fast-food restaurants. This index measures staff courtesy, speed of checkout or delivery, food quality, and order accuracy.111 The frustration Jarvis expressed is increasingly common and has generated an “us vs. them” dynamic between franchisees and McDonald’s corporate staff.

Franchisees also perceive that McDonald’s is using them as a shield, for instance, in deflecting the ques- tion of wages by saying it is up to franchisees to do as they see fit. Doing one thing at corporate-owned stores, which account for only 10 percent of employ- ees, and doing something else at franchise stores has the potential of creating more intense conflicts. Steve Easterbrook, relatively new as CEO, is aware of the performance challenges and determined to make sig- nificant changes. It will be up to McDonald’s employ- ees and franchisees at all locations to effectively implement them.112

If you were CEO, what would you do to help over- come the challenges raised by franchisees while meet- ing McDonald’s goals?

APPLY THE 3-STEP PROBLEM- SOLVING APPROACH TO OB Use the Organizing Framework in Figure 10.6  and the 3-Step Problem-Solving Approach to help

418 PART 2 Groups

LEGAL/ETHICAL CHALLENGE

Arbitration and a Snowball’s Chance113

As you likely knew before you read this chapter, arbi- tration is an alternative form of dispute resolution. In theory and in practice it often is intended to save time and money and achieve better outcomes than going to court. If you haven’t actually been involved in arbi- tration, you might be surprised to know you have likely agreed to it many times without knowing it. Most cell phone, cable, Internet, online shopping, and credit card agreements now contain arbitration clauses. In the fine print of their service agreements are buried the words, “The company may elect to resolve any claim by individual arbitration.” This means the com- pany reserves the right to settle any dispute you raise as an individual, or as a group via class-action, using arbitration. You essentially forfeit your constitutional rights to sue and agree to be bound by the decision of a third party, often hired by the company against which you have a complaint.

A 2015 investigation by The New York Times re- vealed that such clauses are increasingly inserted in consumer and employment contracts as a way to work around the courts, limiting consumers’ recourse both as individuals and collectively in class-action suits. Proponents of the bans say arbitration clauses work just as intended: They save time and money by protecting companies from frivolous lawsuits, while

at the same time providing a less costly, faster, and less resource-intensive route to potential satisfaction for customers.

Opponents also have much to say. They often refer to such clauses as “get out of jail free cards” for large corporations. Moreover, many critics claim that rules of arbitration favor companies, which have skill and expe- rience in arbitrating, as well as financial resources, that the vast majority of consumers lack. The deck seems stacked in the big companies’ favor.

The purpose of class-action suits is to allow indi- viduals with relatively small claims to band together and achieve some sort of recourse against an of- fending company. But courts have thrown out numer- ous class-action claims because of arbitration clauses, including a complaint against a travel- booking website for conspiring to fix hotel prices, an- other against Goldman Sachs claiming sex discrimination, and still another against Taco Bell for discriminating against African American employees. William Young, a federal judge in Boston, said of arbi- tration clauses, “Ominously, business has a good chance of opting out of the legal system altogether and misbehaving without reproach.”114  

There is no official tracking system for arbitration that tallies the number of cases, success rates, or

problem? For any process you consider, ask yourself, Why is this a cause? Again, do this for several iterations to arrive at the root causes.

D. To check the accuracy or appropriateness of the causes, map them onto the defined problem.

Step 3: Make your recommendations for solving the problem. Consider whether you want to resolve it, solve it, or dissolve it (see Section 1.5). Which recom- mendation is desirable and feasible?

A. Given the causes you identified in Step 2, what are your best recommendations? Use the

material in the current chapter that best suits the cause. Consider the OB in Action and Applying OB boxes, because these contain insights into what others have done that might be especially useful for this case.

B. Be sure to consider the Organizing Framework— both person and situation factors—as well as processes at different levels.

C. Create an action plan for implementing your recommendations.

419Managing Conflict and Negotiations CHAPTER 10

it, and groups of consumers have no choice but to do so.

What Should Be Done? 1. Nothing. Allow companies to include arbitration

clauses in consumer agreements and contracts as they choose. Explain your reasoning.

2. Modify the clauses to better protect consumers. Explain your recommended modifications.

3. Do away with arbitration clauses. Justify.

4. Create and explain other alternatives.

amount of money awarded. But the Times investiga- tion revealed that between 2010 and 2014 a total of 1,179 class-action suits were filed against compa- nies. Eighty percent were pushed to arbitration by judges. In a single year, 2014, judges ruled against 134 of 162 class-action filings, moving them to arbi- tration or causing the plaintiffs to drop the cases. The story of individual consumer plaintiffs is even more telling. Between 2010 and 2014, Verizon faced only 65 consumer arbitrations, despite having 125 million subscribers. Time Warner Cable had only seven from among its 15 million customers. It thus seems that while arbitration is a contractual possibility, relatively few individual consumers utilize

11 Major Topics I’ll Learn and Questions I Should Be Able to Answer

11.1 Rational and Nonrational Models of Decision Making MAJOR QUESTION: How can I integrate rational and nonrational models of decision making?

11.2 Decision-Making Biases: Rules of Thumb or “Heuristics” MAJOR QUESTION: It’s hard to be rational. What biases get in the way?

11.3 Evidence-Based Decision Making MAJOR QUESTION: How can I more effectively use evidence-based decision making?

11.4 Four Decision-Making Styles MAJOR QUESTION: How do I decide to decide?

11.5 A Road Map to Ethical Decision Making MAJOR QUESTION: How can I assess the ethics of my decisions?

11.6 Group Decision Making MAJOR QUESTION: What are the pros and cons of group decision making and the various problem-solving tools?

11.7 Creativity MAJOR QUESTION: How can I increase my own creative behavior and that of my employees?

How Critical Is It to Master These Skills?

DECISION MAKING AND CREATIVITY

Throughout this book we encourage you to use the Organizing Framework to solve problems, a skill recruiters say college graduates need.1 The goal of this chapter is to further help you develop your problem-solving skills. The Organizing Framework in Figure 11.1 summarizes what you will learn in this chapter. Although the chapter fo- cuses on decision making, which is an individual- and group/team-level process, a host of person and situation factors influence it. Figure 11.1 further shows that many other individual, group/team, and organizational level processes impact how we make decisions. We will touch on many of these in the sections to come. Finally, take note of how the various decision-making processes affect numerous individual, group/team, and organizational level outcomes.

421

FIGURE 11.1 ORGANIZING FRAMEWORK FOR UNDERSTANDING AND APPLYING OB

INPUTS PROCESSES OUTCOMES

Person Factors • Intuition • Judgmental heuristics • Decision-making styles • Ethical values • Personality • Self-efficacy • National culture

Situation Factors • Decision situation • Organizational culture • Organizational climate

Individual Level • Rational/nonrational decision

making • Ethical decision making • Creativity

Group/Team Level • Rational/nonrational decision

making • Groupthink • Minority dissent • Consensus • Creativity

Organizational Level • Evidence-based decision

making • Creativity

Individual Level • Task performance • Career outcomes • Creativity

Group/Team Level • Group/team performance • Group cohesion and conflict

Organizational Level • Accounting/financial

performance • Legal liability • Innovation • Customer satisfaction

© 2014 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors.

Problem solving and decision making affect all aspects of our lives. Consider the success of a basketball team. Here we see a coach meeting with the team during a sideline huddle to discuss a plan for scoring a basket. The play obviously is being designed to take advantage of a weakness or opportunity associated with the opposing team. Decisions like this can make the difference between losing and winning. © Purestock/SuperStock RF

Winning at Work Does Multitasking Improve My Effectiveness?

What’s Ahead in This Chapter We contrast rational and nonrational decision making and explain why it’s important to understand both. We also show you eight decision-making biases and the benefits of evidence-based decision making. We explain why companies are leveraging big data for making deci- sions. Next we discuss general decision-making styles and ethical decision making. We conclude by distin- guishing the pros and cons of group decision making, group problem-solving techniques, and the process of creativity. All this information will help you improve your ability to make decisions.

brain been asked to track so many data points. We’re simply expecting more of our brains than they have the energy to handle.”7  A stronger stance was taken by physician Joseph Mercola. He concluded, “Multitasking effectively is neurolog- ically impossible for our thinking brain.”8

What Should I Do? Based on research and experience, we recommend the following: (1) ruth- lessly strive to stop multitasking—this requires real commitment because electronic devices are addictive; (2) establish daily times to disconnect from electronic media and give your

brain a rest; (3) change your view about the value of being alone and thinking (it’s not wasted time; Thomas Edison was known to fish with no bait so he could be alone to think); (4) practice mindfulness by using the techniques dis- cussed in Chapter 7—this will help you stay in the moment and fight off the urge to multitask; (5) establish boundaries about using devices in team meetings and while studying; (6) don’t use your devices within 60 minutes of going to sleep—the blue light they emit disrupts sleep patterns; and (7) don’t text and drive.9

What do bumping into walls or win- dows, falling down stairs, or tripping over clutter have in common? They represent some of the many acci- dents that occur when we multitask by texting while walking. Did you know that texting while walking leads to more accidents than texting while driving?2  But what happens when we multitask while studying or at work?

Multitasking and Student Performance Multitasking with technology is the norm for college students. A recent study revealed that 86 percent of US and 72 percent of European stu- dents multitask when using a computer. US students’ GPAs were also found to be lower when they multitasked while studying.3  In another investigation, this one of college students’ beliefs about the value of media multitasking, 53.3 percent concluded that multitasking and studying was a poor strategy, 23.3 percent perceived no gains or loss from it, and 23.4 percent believed multitasking improved academic performance.4

Multitasking at Work Numerous studies with employees in their actual work en- vironments have shown that multitasking is associated with lower efficiency. It seems that multitaskers end up switch- ing tasks hundreds of times a day.5 In contrast, we found only one study that showed a positive relationship between multitasking and performance for call-center employees. However, this positive effect disappeared when the re- searchers accounted for intelligence. In other words, intel- ligence is more important for performance than your ability to multitask.6

Researchers’ best estimate is that only 2.5 percent of people can effectively multitask, although many people think they can. Most of us aren’t good at multitasking be- cause our brains are wired for “selective attention” and our ability to focus is a limited resource. Psychiatrist Edward Hallowell concluded that “never in history has the human

422

© jamtoons/Getty Images RF

423Decision Making and Creativity CHAPTER 11

Decision making matters deeply in your personal and work life. Let’s consider the im- pact of decisions made by a few college graduates during the interview process. One job applicant took a nonemergency call on his smartphone 15 minutes into the inter- view. Do you think this decision made a positive impression? Another decided to bring his father into a 45-minute interview: The recruiter was shocked. Paula Welch, a Cigna HR representative, similarly noted how one recent grad asked his father to call and ne- gotiate a higher salary after the son received a job offer. Here’s another decision: A college senior brought her cat to the interview in a cage and then proceeded to play with it during the interview. The end results of these decisions were negative for all the applicants.10

Decision making  entails identifying and choosing from among alternate solu- tions that lead to a desired state of affairs. The above examples illustrate how deci- sions affect your chances of getting a job after graduation, but successful decision making has much broader applications. Among organizations, for example, Fortune concluded, “Decision making at even the most basic level has slowed materially over the past five to 10 years.”11 Slower decision making leads to increased costs, lower efficiency, and lower customer satisfaction.12 In sum, individuals, teams, and organizations are well served to improve their decision-making skills.

Before discussing rational and nonrational models of decision making, we set the context by discussing two ways of thinking that affect the way we make decisions.

Two Ways of Thinking In his book Thinking, Fast and Slow, Daniel Kahneman, a professor who received the 2002 Nobel Prize in economics, described two kinds of thinking, which he labeled System 1 and System 2.13

System 1—Intuitive and Largely Unconscious Thought System 1 is our auto- matic, instinctive, and emotional mode of decision making. It is fast because it relies on mental shortcuts that create intuitive solutions to problems as they come up, as when we hit the brakes at the sight of another car’s brake lights or pause when we detect anger in someone’s voice.

M A J O R Q U E S T I O N

How can I integrate rational and nonrational models of decision making?

T H E B I G G E R P I C T U R E

Decision making is a key process within the Organizing Framework for Understanding and

Applying OB. The process varies along a continuum of rational to nonrational. Four steps in

making rational decisions are (1) identify the problem, (2) generate alternative solutions,

(3) evaluate alternatives and select a solution, and (4) implement and evaluate the solution.

Examples of nonrational models include (1) satisficing and (2) intuition.

11.1 RATIONAL AND NONRATIONAL MODELS OF DECISION MAKING

424 PART 2 Groups

System 2—Analytical and Conscious Thought System 2 is our slow, logical, de- liberate mode of decision making. It helps us identify when our intuition is wrong or when our emotions are clouding our judgment. It re- quires more cognitive effort than System 1 and is used when contemplating a discrete task such as parallel parking or how to best climb a tree.

Both Systems Have Value There are pros and cons to both systems of thinking. For ex- ample, System 1 can lead to poor follow- through on plans because it focuses on concrete, immediate payoffs, which distract us from con- sidering the long-term implications of deci- sions. System 2 can be too time consuming and is ineffective when we don’t have the cognitive or emotional energy needed to drive this mode of thinking.14

Rational Decision Making: Managers Make Logical and Optimal Decisions The rational model of decision making  explains how managers should make deci- sions. It assumes that managers are completely objective and possess all information for their decisions. In this model, decisions thus demonstrate excellent logic and promote the organization’s best interests.

Four generic stages are associated with rational decision making (see Figure 11.2). We discuss each one next.

Stage 1: Identify the Problem or Opportunity—Determining the Actual versus the Desirable We defined a problem in Chapter 1 as a difference or gap be- tween an actual and a desired situation. By now you know that problem identification is the first step in solving any type of problem. In addition to making decisions to solve problems, however, managers also have to make decisions about optimizing opportuni- ties. An opportunity  is a situation in which results that exceed goals and expecta- tions are possible. For example, US medical schools must prepare to produce 5,000 more graduates a year by 2019. However, this wonderful opportunity will require some tough decisions, because the number of funded residencies for medical students has been frozen since 1997. Residencies are the three to seven years of additional on-the-job train- ing that medical students need before they can practice medicine on their own. Without more residency positions, the Association of American Medical Colleges predicts a shortage of as many as 140,000 doctors by 2025.15

What do you do when you see the rear brake lights like this light up? Do you think about stepping on the brake, or do you automatically hit the brakes? This automatic process is an example of System 1 thinking. Automatic thinking can save lives and improve the speed of decision making, but it also can activate biases that lead to poor decisions. © Ingram Publishing RF

FIGURE 11.2 THE FOUR STAGES IN RATIONAL DECISION MAKING

Stage 1

Identify the problem or opportunity.

Stage 2

Generate alternative solutions.

Stage 3

Evaluate alternatives and select a

solution.

Stage 4

Implement and evaluate the

solution chosen.

425Decision Making and Creativity CHAPTER 11

Whether you face a problem or an opportunity, the goal is always the same: to make improvements that change conditions from their current state to a more desirable one. This requires you to diagnose the cause of the problem, or the nature of the opportunity.

Stage 2: Generate Alternative Solutions—Both the Obvious and the Creative For many people generating solutions is the exciting part of decision making, the step where you get to be creative, think outside the box, and share your ideas about how things should be done. Brainstorming, for instance, is a common technique (discussed later in the chapter) that both individuals and groups use to generate potential solutions. A re- search study of 400 strategic decisions revealed that managers struggled during brain- storming because of three key decision-making blunders:16

1. Rushing to judgment. Managers simply make decisions too quickly without consid- ering all relevant information.

2. Selecting readily available ideas or solutions. Managers take the easy solution without rigorously considering alternatives. This can happen when emotions about the problem are running high.

3. Making poor allocation of resources to study alternate solutions. Managers don’t invest the resources to properly study the problem and the alternate courses of action.

Decision makers thus are encouraged to slow down and use System 2 thinking (ana- lytical and conscious) when making decisions. This should lead them to identify a broader set of alternatives and potential solutions.17 

Stage 3: Evaluate Alternatives and Select a Solution—Ethics, Feasibility, and Effectiveness In the third stage, evaluate your alternatives on several criteria. Costs and quality are important, but you should also consider the following questions: (1) Is it ethical? (If not, don’t consider it.) (2) Is it feasible? (If time is an issue, costs are high, resources are limited, new technology is needed, or customers are resistant, for instance, then the alternative is not feasible.) (3) Will it remove the causes and solve the problem?

Stage 4: Implement and Evaluate the Solution Chosen After the solution has been implemented, stakeholders need to evaluate how effectively it solves the problem. If effective, it should eliminate or significantly reduce the difference between the problem state and the desired outcome. If not, either the problem was incorrectly identified or the solution was inappropriately conceived or executed. Management can return to the first step, problem identification. If the problem was correctly identified, management should consider implementing one of the untried solutions. This process can continue until all feasible solutions have been tried or the problem has changed. System 2 thinking is needed to effectively work through this stage.

What Are the Pros and Cons of the Rational Model? The rational model is prescriptive. It outlines a logical process managers should use, assuming they are opti- mizing when making decisions. Optimizing  means solving problems by producing the best possible solution based on a set of highly desirable conditions—having complete information, leaving emotions out of the decision-making process, honestly and accurately evaluating all alternatives, having abundant and accessible time and re- sources, and having people willing to implement and support decisions. Practical expe- rience, of course, tells us that these conditions are all rarely met, and assumptions to the contrary are unrealistic. Social scientist Herbert Simon earned the 1978 Nobel Prize for his work on decision making. He put it this way: “The assumptions of perfect ratio- nality are contrary to fact. It is not a question of approximation; they do not even re- motely describe the processes that human beings use for making decisions in complex situations.”18

426 PART 2 Groups

That said, there are three benefits of trying to follow a rational process as closely as is realistically possible:

• Quality. The quality of decisions may be enhanced, in the sense that they follow more logically from all available knowledge and expertise.

• Transparency. Rationality makes the reasoning behind a decision transparent and available to scrutiny.

• Responsibility. The rational model discourages decision makers from acting on suspect considerations (such as personal advancement or avoidance of bureaucratic embarrassment) and therefore encourages more responsible decisions.19

The engineering school at Northwestern University is addressing the need to de- velop students’ problem-solving and critical-thinking skills. It has created a course for all new engineering students that requires them to solve challenges with no clear solutions.

Students work in teams to design and build devices to help individuals with disabilities perform simple tasks. Examples include equipping a stroke survivor to crochet with one hand or a partially paralyzed shooting victim to don tight support stockings. Or to make workout gear or bottle openers for people with only one working arm. Each team is given $100 to use in any fashion needed to complete the project.

The course, Design Thinking and Communication, helps students realize that critical thinking and problem solving require resilience and calculated risk taking. Professors want students to learn that problem solving entails a process of strug- gling through challenging problems.

Students note that “learning to ask others for help is a building block of re- siliency.” They also learn that communication among team members is a key skill for solving complex problems. As in the real world, they do not always find a solution.

But the students are not graded on whether they solve the problem. “Instead, they are graded on how well they communicate and work with patients, therapists and teammates, and how well they execute the design process, approach prob- lems and present their results at an end-of-term design expo,” according to The Wall Street Journal.

Students also come to appreciate the value of failure. Learning from failure is new to most students, and in this case, it means having to face people in need of a solution. Student Jocelyn Dong recalled her project, in which the team tried to help a stroke victim resume her hobby of crocheting. The woman said the team’s solution was useless.

The team reframed the problem. It came up with the idea to create an “ele- vated wheelchair armrest that enabled her to prop her weak arm higher, extend- ing her reach.” The patient loved the concept! Not only did it help her to crochet, but it also provided the ability to reach objects from grocery shelves that had been beyond her reach.

Dong told a Wall Street Journal reporter, “It was one of the greatest moments I’ve had so far in engineering.”20

Northwestern University Helps Students Deal with Bounded Rationality while Solving Problems 

OB in Action

427Decision Making and Creativity CHAPTER 11

Nonrational Models of Decision Making: Decision Making Does Not Follow an Orderly Process Nonrational models of decision making  explain how managers actually make deci- sions. These models typically build on assumptions that decision making is uncertain, that decision makers do not possess complete information, and that managers struggle to make optimal decisions. The choice to text while driving is an example of nonrational decision making.

“Statistics show your risk of having an accident or causing an accident is four to eight times greater when using a cell phone in the car. When you’re texting behind the wheel, the risk skyrockets to 23 times, or 2,300 percent.”21 Psychologist Dan Ariely noted, “This be- havior embodies the way we’re capable of doing things that can kill us without thinking about the long-term consequences.”22 Two nonrational models that might explain this be- havior are Herbert Simon’s normative model and the intuition model.

Do you text and drive? Many of us do even in light of the fact that about 25 percent of all automobile accidents involve the use of a cell phone. Sadly, the American Automobile Association estimates that 11 teens die every day from texting and driving. What can you do to reduce the extent to which you text and drive? © SelectStock/Getty Images RF

YOUR THOUGHTS?

1. What is your reaction to the description of this engineering course? 2. What unique aspects of the course help students develop their problem-

solving skills? Explain.  3. Why does problem solving require resilience?

Simon’s Normative Model: “Satisfactory Is Good Enough” Herbert Simon proposed the normative model to describe the process that managers actually use when making decisions. This process is guided by a decision maker’s bounded rationality. Bounded rationality  represents the notion that decision makers are “bounded” or restricted by a variety of constraints when making decisions. Lack of information is a prime example of a decision-making constraint. Would you invest $500 million in the face of bounded rationality? General Motors did.

GM entered into a $500 million investment with car-hailing service Lyft Inc. GM President Dan Ammann concluded that Lyft could assist GM to prepare for a time when

428 PART 2 Groups

people will want self-driving cars. What will be the market for such cars? When will the market be viable? Will the government block this market due to safety concerns? No one really knows, but Ammann said, “There was a desire for both [GM and Lyft] to move promptly. Both saw the world changing quickly.”23

In addition to lack of information, bounded rationality is caused by any personal characteristics and internal and external resources that reduce rational decision making. Personal characteristics include personality and the limited capacity of the human mind. Consider gender: Males tend to make riskier decisions than females.24 Examples of inter- nal resources are the organization’s human and social capital, financial resources, tech- nology, plant and equipment, internal processes and systems, and the time available. External resources include factors the organization cannot directly control, such as em- ployment levels in the community, capital availability, and government policies.25 

Ultimately, bounded rationality leads managers to obtain manageable rather than opti- mal amounts of information. This practice makes it difficult for managers to identify all pos- sible alternate solutions. In the long run, the constraints of bounded rationality cause decision makers to fail to evaluate all potential alternatives, thereby causing them to satisfice.

Satisficing  consists of choosing a solution that meets some minimum qualifica- tions and thus is “good enough.” Satisficing resolves problems by producing solutions that are satisfactory, as opposed to optimal. Finding a radio station to listen to in your car is a good example of satisficing. You cannot optimize because it is impossible to listen to all stations at the same time. You thus stop searching for a station when you find one playing a song you like or do not mind hearing.

The Intuition Model: “It Just Feels Right” Intuition  consists of judgments, in- sights, or decisions that “come to mind on their own, without explicit awareness of the evoking cues and of course without explicit evaluation of the validity of these cues.”26 We all have the ability to use intuition.

EXAMPLE Ignoring recommendations from advisers, Ray Kroc purchased the McDonald’s brand from the McDonald brothers: “I’m not a gambler and I didn’t have that kind of money, but my funny bone instinct kept urging me on.”27 Zachary Bodish bought a poster for a 1958 exhibition of ceramics by Pablo Picasso for $14.44 at an Ohio thrift store. He had a hunch it might be worth much more. Turns out the piece was actually signed by Picasso, and Bodish sold it for $7,000.”28

The use of intuition does not always lead to blockbuster decisions such as those by Ray Kroc and Zachary Bodish, however. To enhance your understanding of the role of intuition in decision making, this section reviews a model of intuition and discusses the pros and cons of using intuition to make decisions.

A Model of Intuition Figure 11.3 presents a model of intuition. Note that it shows two forms of intuition:

1. A holistic hunch  is a judgment based on the subconscious integration of infor- mation stored in memory. People using holistic intuition may not be able to explain why they want to make a certain decision except that the choice “feels right.” This reflects System 1 thinking (intuitive and largely unconscious).

2. Automated experience  represents a choice based on a familiar situation and a partially subconscious application of learned information related to it. For ex- ample, when you have years of experience driving a car, you react to a variety of situations without conscious analysis. Garry Kasparov, one of the best chess players in the world for over 20 years, commented on the use of intuition when playing chess. He said, “At the end of the day your key decisions will be made under time pressure, which means you’ll act on your gut feelings.”29

In Figure 11.3, you can see that intuition is represented by the two distinct processes we just described. One is automatic, involuntary, and mostly effortless. The second is quite the opposite in that it is controlled, voluntary, and effortful. For example, when you are trying to

429Decision Making and Creativity CHAPTER 11

answer one of the Your Thoughts? questions at the end of the OB in Action boxes, an answer may pop into your mind based on your recollection of what you’ve read (an automatic pro- cess). But upon further reflection (a controlled process), you may decide your initial thought was wrong and that you need to go back and reread some material to arrive at another an- swer. This in turn may cause novel ideas to come to mind, and the two processes continue. 

These intuitive processes are influenced by two sources: expertise and feelings (see Figure 11.3). Expertise  is an individual’s combined explicit knowledge  or informa- tion that can easily be put into words, and tacit knowledge  or information we gain through experience that is difficult to express and formalize. 

EXAMPLE Mark Zuckerberg used a combination of explicit and tacit knowledge when making the decision to implement bots on Facebook. Facebook currently hosts 25 bots. “Chatbots—or bots, for short—are stripped-down software agents that un- derstand what you type or say and respond by answering questions or executing tasks. Apple’s Siri is a bot, and so is Amazon’s Alexa.” Zuckerberg’s tacit knowledge told him that people are suffering from app overload and that Facebook could poten- tially solve this problem while also generating substantial revenue. He used explicit knowledge by “following the lead of Tencent Holdings Ltd.’s WeChat, China’s most popular messaging app, which already lets people use bots to shop or pay bills.” Facebook can make a lot of money by using bots.30

• Pros and Cons of Using Intuition. There are two benefits of using intuition to make decisions. (1) It can speed up the decision-making process, which is valuable when you are under time constraints.31 (2) It is useful when resources are limited. On the downside, however, intuition is subject to the same types of biases associ- ated with rational decision making, biases we discuss in the next section. In addi- tion, the decision maker may have difficulty convincing others that the intuitive decision makes sense, so a good idea may be ignored.

• What Is the Bottom Line on Intuition? We believe intuition and rationality are com- plementary and that managers should attempt to use both when making decisions.32 We thus encourage you to use intuition when making decisions. You can develop your intuitive awareness by using the recommendations in the Applying OB box.

FIGURE 11.3 A MODEL OF INTUITION

• Tacit and explicit knowledge

Expertise

• Automatic, involuntary, and e�ortless • Controlled, voluntary, and e�ortful

Intuitive Processes

Feelings

Holistic Hunch

Foundations Processes Forms

Automated Experience

SOURCES: Based in part on D. Kahneman and G. Klein, “Conditions for Intuitive Expertise,” American Psychologist, September 2009, 515–526; E. Sadler-Smith and E. Shefy, “The Intuitive Executive: Understanding and Applying ‘Gut Feel’ in Decision Making,” Academy of Management Executive, November 2004, 76–91; and C. C. Miller and R. D. Ireland, “Intuition in Strategic Decision Making: Friend or Foe in the Fast-Paced 21st Century,” Academy of Management Executive, February 2005, 19–30.

430 PART 2 Groups

TAKE-AWAY APPLICATION

Increasing My Use of Intuition

Use the results of Self-Assessment 11.1 and the Applying OB box to answer the following:

1. Examine the recommendations in the Applying OB box regarding tips for improv- ing your intuition and evaluate each one as either a strength—something you do well—or a weakness—something you do poorly.

2. For those recommendations in the Applying OB box that you think might be your weaknesses, consider whether results from Self-Assessment 11.1 can help you to turn the weaknesses to strengths.

3. Develop a plan to further develop your self-assessment strengths on the basis of the recommendations in the Applying OB box.

Assessing Your Intuition Please be prepared to answer these questions if your instructor has assigned Self- Assessment 11.1 in Connect.

1. What is your assessed level of intuitiveness? Do you agree with this assessment?

2. What are the two highest-ranked items driving your intuition? When do you tend to use these characteristics?

3. What are the two lowest-ranked items that detract from your intuition? When do they get in the way of your making intuitive decisions?

SELF-ASSESSMENT 11.1

Applying OB

∙ Trust your intuitive judgments. Your feelings count. Trust them and rely on your “gut” when it feels right.

∙ Seek feedback. Confirm  your intuitive judgments by asking trusted others for feedback.

∙ Test your intuitive success rate. Think back over the last year and assess how many times you relied on your intuition. What was your success rate? If your intu- ition was wrong, assess why and try to use this knowledge in the future. 

∙ Try visualizing solutions. Visualizing solutions will help engage the System 1 thinking needed to activate your intuition.

∙ Challenge your  intuition. Rather than automatically accepting your intuitive thoughts, challenge them. Test your intuition by thinking of counterarguments. Then challenge those counterarguments.33

Tips for Improving Your Intuition

• Improving Your Intuitive Awareness. Do you think being intuitive is a good thing? Would you like to become more intuitive? If yes, you will find Self- Assessment 11.1 valuable.

431Decision Making and Creativity CHAPTER 11

M A J O R Q U E S T I O N

It’s hard to be rational. What biases get in the way?

T H E B I G G E R P I C T U R E

All of us use heuristics when making decisions. By better understanding the nature of these

various rules of thumb, you can improve your ability to make more rational decisions. Heuristics

fall into eight categories: availability bias, representativeness bias, confirmation bias, anchoring

bias, overconfidence bias, hindsight bias, framing bias, and escalation of commitment bias.

Ever had a hard time explaining why you made a particular decision? That’s normal. All of us use shortcuts or “rules of thumb” when making decisions. Academics call these shortcuts judgmental heuristics, pronounced “hyur-ris-tiks.” Judgmental heu- ristics  are cognitive shortcuts or biases that are used to simplify the process of making decisions.34

There are both pros and cons to the use of heuristics.35 Because these shortcuts de- rive from knowledge gained from past experience, they can help managers make deci- sions. At the same time, however, they can lead to bad decisions, particularly by people facing time constraints, such as physicians. For example, patients in the United States experience about 12 million diagnostic errors a year. These errors are believed to contrib- ute to 10 percent of patient deaths and 17 percent of adverse events in hospitals.36 We suspect heuristics are partly to blame for this situation because physicians don’t have the time to consider all a patient’s symptoms when making diagnoses.37

Here are eight biases that commonly affect decision making:

1. Confirmation bias 2. Overconfidence bias 3. Availability bias 4. Representativeness bias 5. Anchoring bias 6. Hindsight bias 7. Framing bias 8. Escalation of commitment bias

Knowledge about these biases or heuristics can help you to avoid using them in the wrong situation or being blinded by not knowing you are in fact using them.

1. Confirmation bias. Confirmation bias  pertains to how we selectively gather information and has two components. The decision maker (1) subconsciously de- cides something even before investigating why it is the right decision—for example, making a snap decision to purchase a particular smartphone—and (2) seeks informa- tion that supports or confirms the decision while discounting information that does not.38 This bias leads us to collect information that supports our beliefs or views.

2. Overconfidence bias. Overconfidence bias  results in overestimating our skills relative to those of others, such as our driving ability, and overestimating the

11.2 DECISION-MAKING BIASES: RULES OF THUMB OR “HEURISTICS”

PART 2 Groups432

accuracy of our predictions.  This bias grows in strength when people are asked moderate to extremely difficult questions rather than easy ones. (See the Problem- Solving Application on the BP Deepwater Horizon oil spill.) Entrepreneurs especially fall prey to this bias when deciding to start and sustain new ventures.39 Our advice: Don’t assume that overconfident and assertive people have the best recommendations.

Heuristics Partly to Blame for BP Oil Spill

CNN summed up the months of bad news this way: “The drill rig Deepwater Horizon exploded and sank in April 2010, killing 11 men aboard and un- leashing an undersea gusher from a BP-owned well called Macondo a mile under water. It took three months to cap the well, and federal officials estimate nearly 5 million barrels of oil—more than 200 million gallons—poured into the Gulf in that time.”40

What Happened? According to Bob Bea, an engi- neering professor at the University of California, Berkeley, “Technological disasters, like the BP oil spill, follow a well-worn ‘trail of tears.’” Bea has in- vestigated 630 disasters and is an expert on off- shore drilling.

The Associated Press interviewed Bea in the spill’s aftermath. Bea thinks the BP spill falls into the category of disasters that result when an organization simply ignores warning signs through overconfi- dence and incompetence. He pointed to congressional testimony: BP ignored problems with a dead battery, leaky cement job, and loose hydraulic fittings.

“Disasters don’t happen because of ‘an evil empire,’” Bea said. “It’s hubris, arrogance, and indolence.” Because cutting-edge technology often works flawlessly, Bea said, people get lulled into compla-

cency. “Corners get cut, problems ignored. Then boom.”41

The Confirmation Bias at Work The finance industry saw the disaster as resulting from BP’s failure to “debias” its investigation. “Transocean workers conducted two pressure tests, a positive pressure test and a negative pressure test,” according to the Quarterly Journal of Finance. “The positive pressure test involves increasing the pressure inside the well by pumping fluid, to see whether fluids leak from the well. . . . The result was favorable.

“The negative pressure test involves decreasing pressure from the well, to see whether fluids leak. . . . The test results were unusual, and Transocean workers struggled to interpret the readings. Pressure built up unexpectedly with no clear reason as to why.” This situation was deemed to be “nonproblematic.”

“However, other Transocean workers were not persuaded that the problems had been resolved. For example, Wyman Wheeler, who supervised the drilling crew for 12 hours per day, was not convinced that all was in order. Yet, when Wheeler’s shift ended at 6 p.m. his replacement, Jason Anderson, assured both his Transocean coworkers (and his BP colleagues) that the pressure readings were normal.”42

The Final Outcome? BP settled charges with the US Department of Justice by pleading guilty to 11 counts of manslaughter, two misdemeanors, and a felony count of lying to Congress. BP also agreed to government monitoring of its safety practices and ethics for four years.43 As of July 2015, the oil spill had obligated BP to make payments of $53.8 billion. BP also agreed to pay an additional $20 billion in April 2016 to resolve the federal government’s civil claims under the Clean Water Act and natural

Problem-Solving Application

The Deepwater Horizon oil rig on fire. © Everett Collection/Alamy

433Decision Making and Creativity CHAPTER 11

3. Availability bias. The availability heuristic  is a decision maker’s tendency to base decisions on information readily available in memory. Because the informa- tion is recent, we overestimate its importance. The problem, of course, is that recent information is not necessarily the best or most accurate. The availability bias can be fueled by news media, which emphasize negative or unusual events like plane crashes and high-school shootings and often cause us to overestimate their frequency.45 

4. Representativeness bias. We use the representativeness heuristic when we estimate the probability of an event’s occurrence based on our impressions about similar occurrences. Representativeness bias  leads us to look for information that sup- ports previously formed stereotypes.47 A manager, for example, may hire a gradu- ate from a particular university because the past three people hired from this university turned out to be good performers. In this case, the “school attended” crite- rion is being used to facilitate complex information processing associated with em- ployment interviews. However, this shortcut can result in a biased decision. 

5. Anchoring bias. Is the population of Iraq greater than 40 million? What’s your best guess about the population of Iraq? If your answer to the second question was influ- enced by the number 40 million suggested by the first question, you were affected by the anchor- ing bias. Anchoring bias occurs when decision makers are influ- enced by the first information they receive about a decision, even if it is irrelevant. Initial in- formation, impressions, data, feedback, or stereotypes anchor our subsequent judgments and decisions.

6. Hindsight bias. Imagine you are taking an OB course that meets Tuesdays and Thursdays, and your professor gives unannounced quizzes each week. It’s the Mon- day before a class, and you are deciding whether to study for a potential quiz or watch Monday Night Football. Two of your classmates have decided to watch

resources damage claims under the Oil Pollution Act. These payments include a penalty of $5.5 billion (plus interest), $8.1 billion in natural resource damages, up to an additional $700 million to address in- juries to natural resources that are presently known, $600 million for other claims, and $5.9 billion to the states and local governments.44 

Apply the 3-Step Problem-Solving Approach

Step 1: Define the problem in this example.

Step 2: Identify the causes. How did the confirmation bias and overconfidence bias contribute to this disaster?

Step 3: Make your recommendations about what BP should do differently in the future to avoid such disasters.

Some people are afraid of flying because they overestimate the chances of being in a plane crash. Plane crashes are actually low-probability events. Between 2006 and 2015 there were 192.8 million commercial jet departures. How many accidents involving fatalities do you think happened during this time period? There were 65.46 © AF archive/Alamy

434 PART 2 Groups

the game rather than study because they don’t think there will be a quiz the next day. The next morning you walk into class and the professor says, “Take out a sheet of pa- per for the quiz.” You turn to your friends and say, “I knew we were going to have a quiz; why did I listen to you?” Hindsight bias occurs when knowledge of an out- come influences our belief about the probability that we could have predicted the outcome earlier. The danger of this bias is that, in retrospect, we get overconfi- dent about our foresight, which leads to bad decisions.48 For example, investors prone to this bias will confidently think they are pre- dicting good investment opportunities on the basis of such experiences, only to find out that they invested in dogs.49

7. Framing bias. Framing bias relates to the manner in which a question is posed or framed. It leads us to change the way we interpret alternatives. For example, customers have been found to prefer meat that is framed as “85 percent lean” instead of “15 percent fat,” although, of course, the two mean the same thing. In general, people view choices more favorably when they are framed in terms of gains rather than loses.50 You would be more likely to invest in a product that had a 60 percent chance of success rather than a 40 percent chance of failure. Try framing your deci- sion questions in alternate ways to avoid this bias.

6. Escalation of commitment bias. Escalation of commitment bias  is the ten- dency to hold to an ineffective course of action even when it is unlikely the bad situation can be reversed. Would you invest more money in an old or broken car? The Drug Enforcement Administration and the Pentagon continued to spend on a spy plane for use in Afghanistan that was supposed to be completed in 2012 at a cost of $22 million, even though the project had missed every projected delivery date. In March 2016, it had not yet left the ground, and total payouts had reached $86 million.51  

Researchers recommend the following actions to reduce the escalation of commitment: • Set minimum targets for performance, and have decision makers compare their

performance against these targets. • Regularly rotate managers in key positions throughout a project. • Encourage decision makers to become less ego-involved with a project. • Make decision makers aware of the costs of persistence.52

Denver Broncos quarterback Peyton Manning (18) calling the play at the line against the Carolina Panthers in Super Bowl 50 at Levi’s Stadium in Santa Clara, California, on February 7, 2016. Many of us fall prey to the hindsight bias when we evaluate the success or failure of plays called by quarterbacks. © Joe Amon/The Denver Post/Getty Images

TAKE-AWAY APPLICATION

Reducing My Use of Decision-Making Biases

Using the list of decision-making biases, consider the following:

1. Think of a poor decision you made in the past 6 to 12 months.

2. Which of the eight decision-making biases may have influenced your decision?

3. Based on your answer and your knowledge of judgmental heuristics, what could you have done differently to avoid the poor decision?

435Decision Making and Creativity CHAPTER 11

Evidence-based decision making  is the process of conscientiously using the best available data and evidence when making managerial decisions. It holds the promise of helping avoid the decision-making biases discussed above and improving performance while reducing costs. Proponents also believe evidence- based decision making can help in the use of “big data” to market and sell products and services. 

Consider the applications to wine making and professional sports. 

EXAMPLE Hahn Estate Winery, in California’s Santa Lucia Highlands, is using drones to collect data as- sociated with managing its crops. Wineries care about the quantity and quality of their grapes. “By running software algorithms made for monitoring crops, a drone can help the winery determine both,” according to Andrew Zaleski, a Fortune reporter. The drone takes photos and is fitted with different types of sensors. Zaleski notes that this information helps Hahn “monitor the health of its vineyard and resist the effects of California’s fourth consecutive year of drought. . . . All of that data goes into the platform, which runs it against our analytics engine, which looks for patterns and anomalies to make recommenda- tions.” Hahn wants to apply this process to all of its acres.53

M A J O R Q U E S T I O N

How can I more effectively use evidence-based decision making?

T H E B I G G E R P I C T U R E

You can improve the quality of your decisions by looking for the best evidence and the best

available data to make, inform, or support them. This section of the chapter will help you un-

derstand the role of evidence in decision making and the move toward “big data.”

11.3 EVIDENCE-BASED DECISION MAKING

This Phantom drone has a Go-Pro camera used to monitor vineyards. It enables growers to obtain a faster and more accurate image of what is happening with their crops. In turn, the drone’s data can be imputed into data analytical programs and used to make more effective decisions. © George Rose/Getty Images

436 PART 2 Groups

EXAMPLE The NBA has installed player-tracking systems in all its 29 arenas. During practice, for example, players wear a silver dollar–sized chip to monitor their physiolog- ical indicators, movements, and posture. Coaches study the data to customize a train- ing regimen for each player so they can improve conditioning and range of motion. According to a sports blogger, Steve Kerr, coach of the 2015 NBA champion Golden State Warriors, uses real-time data in practices “to ensure he was benching fatigued players before they were at risk for injury . . . the Warriors used trends in the data to make real change, such as changing flight times after games so the team could get optimal rest and reduce stress.” The team lost fewer minutes of playing time to injuries than any other team in the NBA.54

Using Evidence to Make Decisions Managers use evidence or data in three different ways: to make a decision, to inform a decision, and to support a decision. Here is what a team of researchers had to say about how we use data to make decisions.

“Evidence is used to make a decision whenever the decision follows directly from the evidence.” For example, if you wanted to purchase a particular used car such as a Toyota Prius based on price and color, you would obtain data from the Internet and classified ads and then choose the seller offering the lowest-priced red Prius. “Evidence is used to in- form a decision whenever the decision process combines hard, objective facts with quali- tative inputs, such as intuition or bargaining with stakeholders.” For instance, when firms are hiring new college graduates, objective data about their past experience, education, and participation in student organizations is relevant input to the hiring decision.

The Golden State Warriors use of evidence-based decision making has helped the team reach the NBA finals in 2015 and 2016. No doubt this application leads to more fast breaks like this one involving Stephen Curry with the ball against the New Orleans Hornets. © Tribune Content Agency LLC/Alamy

437Decision Making and Creativity CHAPTER 11

Nonetheless, subjective impressions garnered from interviews and references are typi- cally combined with these objective data to make a final decision. These two uses of evi- dence are clearly positive and should be encouraged. The same cannot be said about using evidence to support a decision.

“Evidence is used to support a decision whenever the evidence is gathered or modified for the sole purpose of lending legitimacy to a decision that has already been made.”55 This application of evidence has both positive and negative effects. On the positive side, evidence collected after the fact can be used to convince an external audience that the organization is following a sound course of action in a complex and ambiguous decision context. This can lead to confidence and goodwill about how a company is responding to environmental events. On the negative side, the practice can stifle employee involvement and input because people will come to believe that management is going to ignore evidence and just do what it wants. In summary, be- cause this practice has both pros and cons, management needs to carefully consider when (if ever) it might be appropriate to ignore disconfirming evidence and push its own agenda or decisions.

Big Data: The Next Frontier in Evidence-Based Decision Making A recent study says the size of the digital universe will reach 40 zettabytes (ZB) by 2020, a 50 percent increase in information from 2010. To put this in perspective, there are 700,500,000,000,000,000,000 grains of sand on the beaches around the world. Forty ZB is equal to 57 times the number of grains of sand.56 The term big data  reflects the vast quantity of data available for decision making. It also encompasses “the collection, sorting, and analysis of that information, and the techniques to do so.”57 The analysis of big data is expected to revolutionize all aspects of our lives, and companies are scram- bling to hire qualified employees for the job.  

According to the US Bureau of Labor Statistics, the demand for people with data analytic skills will increase by 22 percent between 2013 and 2020.58 Guess who is responding to this need? Universities. More universities are offering majors in data analytics. For example, the number of undergraduate students majoring in sta- tistics increased 95 percent between 2010 and 2013. At the graduate level, the num- ber of universities offering master’s degrees in data analytics increased from 5 in 2010 to over 80 in 2015.59 These degrees will train people to use quantitative and statistical tools to analyze and interpret big data. Do you think you are suited for this career?

Managers and companies that effectively utilize big data, such as Kroger (see the Problem-Solving Application box), are expected to gain competitive advantage. Big data creates value in the following ways:

• It can make information more transparent and usable. • It allows organizations, like Kroger, to measure and collect all types of

performance information, enabling them to implement initiatives to enhance productivity.

• It allows more narrow segmentation of customers. • It can be used to develop new products.60

One problem with big data is that private or sensitive information is more easily obtained, which means it can be leaked to others. This is precisely what National Security Agency (NSA) contractor Edward Snowden did in 2013. He leaked information about what the NSA was doing with big data.61

PART 2 Groups438

Kroger Uses Big Data to Improve Customer Service and Profits

Kroger began its use of big data in 2012. The system is called QueVision, and it received the top retail innovation award from InformationWeek’s  Elite 100. Kroger installed QueVision be- cause it wanted to reduce customers’ wait time to check out.

How Does the System Work? “Que- Vision uses infrared sensors to count customers entering the store and at checkout lanes. Combining those counts with factors such as store lay- out, staffing levels for cashiers and baggers, and historical transaction logs, store managers use a simulator to access the number of registers that need to be open in real time. Estimates are also made on how many should be open in 15 and 30 minutes.” The system has been installed in more than 2,400 stores.62

The data also uncovered additional trends that led to increased sales. “The system showed that there were more customers than Kroger realized buying a small number of items in the morning and during lunchtime, and that the express lanes were backing up. So Kroger added 2,000 new express lanes to its stores nationwide, which it credits with growing the number of those small orders over the last two years.”63

The system has helped Kroger reduce wait time from an average of four minutes to about 26 sec- onds. As you might expect, customer satisfaction has improved since QueVision was installed. But there was another side benefit. InformationWeek reported that the “companywide cashier-friendliness metric, measured in customer surveys, has improved 24 percent since 2011.”64

Problem-Solving Application

Behind the scenes at this Kroger supermarket, computers, using infrared cameras, count shoppers in line to alert managers when to open new lanes and even to predict future traffic. © George Rose/Getty Images

Apply the 3-Step Problem-Solving Approach

Step 1: Define the problem Kroger was trying to solve by installing QueVision.

Step 2: Identify the causes of different spending patterns and customer service responses.

Step 3: Make an evaluation of Kroger’s use of QueVision. Briefly summarize ethical and privacy issues around the company’s customer service effort.

439Decision Making and Creativity CHAPTER 11

We make countless decisions on a daily basis—what to wear, what to eat, what route to take driving to school, whether to confront a negative colleague. These decisions are guided by our decision-making style. A decision-making style  is the way an individ- ual perceives and comprehends stimuli and the general manner in which he or she chooses to respond to such information.65 A team of researchers developed a model of decision-making styles based on the idea that styles vary along two dimensions: value orientation and tolerance for ambiguity.66

Value Orientation and Tolerance for Ambiguity Value orientation is the extent to which an individual focuses on either task and technical concerns or people and social concerns when making decisions. Some people, for in- stance, are very task-focused at work and do not pay much attention to people issues, whereas others are just the opposite. 

The second dimension pertains to a person’s tolerance for ambiguity. This character- istic indicates the extent to which a person needs structure or control in his or her life. Some people desire a lot of structure. They have a low tolerance for ambiguity and find ambiguous situations stressful and psychologically uncomfortable. Others do not have a high need for structure and can thrive in uncertain situations; their tolerance for ambigu- ity is high. Imagine the ambiguity faced by Andrés Sepúlveda as he worked to rig politi- cal campaigns across Latin America. He and his team of hackers “stole campaign strategies, manipulated social media to create false waves of enthusiasm and derision, and installed spyware in oppositions offices, all to help Peña Nieto get elected president of Mexico,” according to Bloomberg Businessweek.67 Ambiguous situations can energize people like Sepúlveda with a high tolerance for ambiguity.

When we combine the dimensions of value orientation and tolerance for ambiguity, they form four styles of decision making: directive, analytical, conceptual, and behavioral (see Figure 11.4). Let’s look at each of these.

The Directive Style: Action-Oriented Decision Makers Who Focus on Facts People with a directive style have a low tolerance for ambiguity and are oriented toward task and technical concerns when making decisions. They are efficient, logical, practical,

M A J O R Q U E S T I O N

How do I decide to decide?

T H E B I G G E R P I C T U R E

Your decision-making style reflects the manner in which you use information to make deci-

sions. It’s an input in the Organizing Framework. Knowing the four general styles of decision

making will help you understand how your managers and coworkers are making their deci-

sions; and it will help you know yourself that much better too. The four decision-making styles

are directive, analytical, conceptual, and behavioral.

11.4 FOUR DECISION-MAKING STYLES

440 PART 2 Groups

and systematic in their approach to solving problems. Directive decision makers are action oriented and decisive and like to focus on facts. In their pursuit of speed and results, how- ever, they tend to be autocratic, exercise power and control, and focus on the short run.

A directive style seems well suited for an air-traffic controller. Here is what Paul Rinaldi, president of the National Air Traffic Controllers Association, had to say about his decision-making style, as told to a reporter from Fortune:

It’s not so much analytical as it is making a decision quickly and sticking with it. . . . You can’t back out. You’ve constantly got to be taking into account the speed of the airplane, its characteristics, the climb rate, and how fast it’s going to react to your instructions. You’re taking all that in and processing it in a split second, hoping that it’ll all work together. . . . We can’t make mistakes.68

The Analytical Style: Careful and Slow Decision Makers Who Like Lots of Information People with the analytical style have a much higher toler- ance for ambiguity and tend to overanalyze a situation. They like to consider more information and alternatives than do those with a directive style. Analytical individuals are careful decision makers who take longer to make deci- sions but who also respond well to new or uncertain situa- tions. They can often be autocratic.

Federal Reserve Chairperson Janet Yellen appears to have an analytical style. She and her colleagues must analyze domestic and worldwide economic trends to determine the best course of action for growing the US economy. Her decisions about whether to raise benchmark interest rates are based on complicated and sometimes am- biguous information, and she carefully considers all sides of the issue before making a decision.69

FIGURE 11.4 DECISION-MAKING STYLES

SOURCE: Based on discussion in A. J. Rowe and R. O. Mason, Managing with Style: A Guide to Understanding, Assessing, and Improving Decision Making (San Francisco: Jossey-Bass, 1987), 1–17.

Analytical Conceptual

Directive

Task and technical concerns

Low

High

Tolerance for

Ambiguity

People and social concerns

Value Orientation

Behavioral

Janet Yellen is an economist and has served as the Chair of the Board of Governors of the Federal Reserve System since October 2013. She is an accomplished academic who taught at Harvard, The London School of Economics and Political Science, and the University of California, Berkeley. © Yin Bogu/Xinhua/Alamy

441Decision Making and Creativity CHAPTER 11

The Conceptual Style: Intuitive Decision Makers Who Involve Others in Long-Term Thinking People with a conceptual style have a high tolerance for ambiguity and tend to focus on the people or social aspects of a work situation. They take a broad perspective on problem solving and like to consider many options and future possibilities. Conceptual types adopt a long-term view and rely on intuition and discussions with others to acquire information. They also are willing to take risks and are good at finding creative solutions to problems. On the downside, however, a conceptual style can foster an idealistic and indecisive ap- proach to decision making.

The Behavioral Style: Highly People-Oriented Decision Makers The behavioral style is the most people-oriented of the four. People with this style work well with others and enjoy social interactions in which opinions are openly exchanged. Behavioral decision makers are supportive, are receptive to suggestions, show warmth, and prefer verbal to written information. Although they like to hold meetings, they pre- fer to avoid conflict and can be too concerned about others. This can lead behavioral types to adopt a conflict-avoidance approach to decision making and to have a hard time saying no.

Which Style Are You? Research reveals that very few people have only one dominant decision-making style. Rather, most managers have characteristics that fall into two or three styles. Studies also show that decision-making styles vary by age, occupation, personality type, gender, and country.70 It’s important to understand your decision-making style because it affects the quality of your decisions and team performance.71  Self-assessment 11.2 will enhance your understanding about your decision-making style.

What Is My Decision-Making Style? Please be prepared to answer these questions if your instructor has assigned Self- Assessment 11.2 in Connect.

1. Do you agree with your results? Explain.

2. Which of these styles is most important in your role as a student and in your cur- rent job?

3. Based on your answer to question 2, what might you do to modify your decision- making style?

SELF-ASSESSMENT 11.2

442 PART 2 Groups

M A J O R Q U E S T I O N

How can I assess the ethics of my decisions?

T H E B I G G E R P I C T U R E

Sometimes you may find yourself confused about the ethics of a situation. One way to gain

some certainty is to graph the situation with a decision tree, which provides a framework for

ethical decision making.

11.5 A ROAD MAP TO ETHICAL DECISION MAKING

Although research tells us that ethical behavior is related to inputs such as personality, values, locus of control, and a culture and climate for ethics,72 there are few tools for help- ing individuals to navigate through ethical dilemmas or challenges. An approach sug- gested by Harvard Business School Professor Constance Bagley can help fill the gap. Bagley recommends a decision tree to help managers make ethical decisions.73

A decision tree  is a graphical representation of the process underlying decisions, and it shows the consequences of making various choices. You can follow Bagley’s deci- sion tree, shown in Figure 11.5, by asking the following questions about your decision:

FIGURE 11.5 AN ETHICAL DECISION TREE

SOURCE: C. E. Bagley, “The Ethical Leader’s Decision Tree,” Harvard Business Review, February 2003.

Is the proposed action legal?

Don’t do it.

Yes

No

Don’t do it.

Don’t do it.

Do it.Yes

No

Do it, but disclose the e�ect of the action to shareholders.

Yes

No

Does it maximize shareholder value?

Yes

No

Is it ethical? (To answer, weigh the e�ect on customers, employees, the community, the environment, and suppliers against the benefit to the shareholders.)

Would it be ethical not to take the action? (To answer, weigh the harm or cost that would be imposed on shareholders against the costs or benefits to other stakeholders.)

443Decision Making and Creativity CHAPTER 11

1. Is the proposed action legal? This may seem like a common- sense question, but some man- agers and companies fail to ask it. Synthes, a medical device maker, decided to market Norian XR, a cement that can turn into bone when injected into humans, for spine surger- ies, despite being told not to by the Food and Drug Administra- tion. At least five people died on the operating table after be- ing injected with Norian.74

2. If “yes,” does the proposed action maximize shareholder value? A decision maximizes shareholder value when it in- creases profits for an organiza- tion, because these profits are eventually distributed to shareholders. Regardless of shareholder value, however, the decision tree shows that managers still need to consider the ethical implications of each decision or action.

3. If the decision maximizes shareholder value, the decision maker than considers whether or not the action is ethical. Managers should answer this question by weighing the effect of the action on an organization’s other key constituents (cus- tomers, employees, the community, the environment, suppliers) against the benefit to the shareholders. For example, Bangladesh factory owners bullied employees to work in a building despite warnings from engineers that an exterior crack made it unsafe. They did this out of fear of losing business, which would have had a negative impact on shareholder value. In 2013 the building collapsed, killing 1,129 people. The decision to force workers to enter may have benefited shareholders, but it was a tragically poor choice for employees and for the country.75 Obviously, then, it was also unethical.

4. If the decision does not maximize shareholder value, then the decision maker should consider whether it would be ethical not to take the proposed action. If an action would not directly benefit shareholders, consider whether it would be eth- ical not to take it. The decision to continue operating factories in the damaged build- ing in Bangladesh was harmful to other stakeholders—employees and the country. The ethical decision might have been to ask employees to enter the building only after the structural problems had been fixed, and to ask customers for some leeway in filling orders.

The decision tree cannot provide a quick formula that managers and organizations can use to evaluate every ethical question. Ethical decision making is not always clear- cut and is affected by cross-cultural differences and organizational culture and cli- mate. Organizations are encouraged to conduct ethics training and to increase awareness about cross-cultural issues when the work engages people with mixed cul- tural backgrounds.76 That said, the decision tree does provide a framework for consid- ering the trade-offs between managerial and corporate actions and managerial and corporate ethics. Try using this decision tree the next time you are faced with a sig- nificant ethical question or problem.

The 2013 building collapse in Rana Plaza in Bangladesh is the largest garment factory accident in history and killed 1,129 people. Although it may have been legal to ask workers to enter a building with structural damages, one could certainly question the ethics of this decision. © Zuma Press, Inc./Alamy

444 PART 2 Groups

Aristotle was an early proponent of group decision making. He concluded that “when there are many who contribute to the process of deliberation, each can bring his share of goodness and more prudence . . . some appreciate one part, some another, and all together appreciate all.”77  Aristotle is suggesting that group decision making is more effective when individuals in the group share and aggregate their information. As you well know, this does not always happen when groups make decisions. This section will help you learn about decision making in groups so you can achieve Aristotle’s proposed benefits.

M A J O R Q U E S T I O N

What are the pros and cons of group decision making and the various problem-solving tools?

T H E B I G G E R P I C T U R E

You’ve probably seen both good and poor results from a group decision. OB confirms that

group decisions can lead to mixed results. It identifies five potential advantages and four dis-

advantages. Knowing them arms you with information to help you maximize the advantages

and minimize the disadvantages. In this section you will find contingency recommendations

for working with groups in decision making and three helpful group problem-solving tech-

niques: brainstorming, the nominal group technique, and computer-aided decision making.

11.6 GROUP DECISION MAKING

Aristotle (384-322 bc) was a Greek philosopher and scientist. His writings span many subjects and he highly believed in the value of using logic and empirical data when making decisions. © QEDimages/Alamy RF

445Decision Making and Creativity CHAPTER 11

Advantages and Disadvantages of Group Decision Making We often have to decide whether to make a decision alone or to consult with others. The following list of advantages and disadvantages can help you decide what to do.

Advantages These five advantages are most likely to be found when the group has experience with the issue at hand, and when it is diverse in terms of characteristics such as personalities, gender, attitudes, and experience.78

• Greater pool of knowledge. A group possesses more information and knowledge than one individual acting alone.

• Different approaches to a problem. Individuals with different backgrounds and experiences bring varied perspectives to diagnosing and solving problems.

• Greater commitment to a decision. Participation and a voice in decision making are more likely to result in commitment to a decision. This in turn leads group members to accept and feel responsible for implementing a proposed solution.

• Better understanding of decision rationale. Participating in a decision increases group members’ understanding about why the decision is being made and what must occur to implement it. This in turn reduces miscommunication among people.

• More visible role modeling. Less experienced group members learn about group dynamics and how to solve problems.79

Disadvantages The disadvantages of group-aided decision making relate to group dynamics and interpersonal interactions.80

• Social pressure. The desire to look good in front of others, particularly the boss, leads to conformity and stifles creativity.

• A few dominant participants. The quality of a group’s decision can be influenced by a few vocal people who dominate the discussion. This is particularly problematic when the vocal person is perceived as a powerful individual.

• Goal displacement. When the group is evalu- ating alternatives, secondary considerations such as winning an argument, getting back at a rival, or trying to impress the boss can override the primary goal of solving a problem. Goal displacement  occurs when the primary goal is overridden by a secondary goal.81

• Groupthink. Groupthink  is “a mode of thinking that people engage in when they are deeply involved in a cohesive in- group, when members’ strivings for unanimity override their motivation to re- alistically appraise alternative courses of action.”82 Groupthink is thoroughly dis- cussed in the next section.

Groupthink The term groupthink, defined above, originated from an analysis of the decision-making processes underlying the war in Vietnam and other US for- eign policy fiascoes. Groupthink happens when

The Challenger disaster occurred in January 1986. The photo shows the aftermath of the rocket booster breaking apart 73 seconds into the flight. All seven crew members died, and experts concluded that groupthink was partly to blame for the explosion. © NASA-JSC

446 PART 2 Groups

members fail to exercise sufficient reality testing and moral judgment due to pressures from the group. If they passively ignore the danger, modern managers can all too easily become victims of groupthink (such as happened before the space shuttle Challenger di- saster and the Iraq war after 9/11). 

As you might imagine, groupthink negatively affects group performance and is often driven by high levels of cohesiveness.83 Cohesiveness  or a sense of “we-ness” tends to override individual differences and motives. Members of groups tend to be cohe- sive for two fundamental reasons: (1) they like and enjoy each other’s company and (2) they need each other to achieve a common goal. You can see how cohesiveness is a double-edged sword in its effects on group-level outcomes in the Organizing Framework. It can help you and your team reduce conflict, but it can also reduce performance if it limits questioning and critical thinking and results in groupthink.84 How do you avoid groupthink? First, know the symptoms.

Symptoms of Groupthink There are eight common symptoms of groupthink. The more that are present in a situation, the higher the probability that groupthink will occur. 1. Invulnerability. An illusion that the group cannot make a mistake breeds excessive

optimism and risk taking. 2. Inherent morality. Assuming the group is highly moral encourages members to ig-

nore ethical implications. 3. Rationalization. Members protect their personal or “pet” ideas and assumptions. 4. Stereotyped views of opposition. The group may underestimate opponents. 5. Self-censorship. Keeping ideas and questions to yourself stifles critical debate. 6. Illusion of unanimity. Members’ silence can be interpreted to mean consent. 7. Peer pressure. Be careful when the loyalty of dissenters is questioned. 8. Mindguards. Self-appointed protectors can shut out adverse information.85

Prevention Is Better than Treatment Prevention is better than treatment or cure when dealing with groupthink. Table 11.1 provides excellent recommendations for remov- ing barriers to minority dissent. Minority dissent  occurs when group members feel comfortable disagreeing with other group members. Research reveals that minority dissent is positively related to participation in decision making and job satisfaction.86

Are you working on any project teams at school or work? If yes, you may be interested in assessing the level of minority dissent and participation in decision making. Results from Self-Assessment 11.3 can help you to improve your effectiveness within these teams.

TABLE 11.1 TECHNIQUES FOR PREVENTING GROUPTHINK

1. Each member of the group should be assigned the role of critical evaluator. This role requires the active voicing of objections and doubts.

2. Top-level executives should not use policy committees to rubber-stamp decisions that have already been made.

3. Different groups with different leaders should explore the same policy questions.

4. Managers should encourage subgroup debates and bring in outside experts to introduce fresh perspectives.

5. Someone should be given the role of devil’s advocate when discussing major alternatives. This person tries to uncover every conceivable negative factor.

6. Once a consensus has been reached, everyone should be encouraged to rethink his/her position to check for flaws.

SOURCE: Adapted from discussion in I. L. Janis, Groupthink, 2nd ed. (Boston: Houghton Mifflin, 1982).

447Decision Making and Creativity CHAPTER 11

Practical Contingency Recommendations for Group Decision Making There are three practical considerations in decision making.

1. Routine and frequency: If the decision occurs frequently and is of a routine nature, such as deciding on promotions or who qualifies for a loan, use groups because they tend to produce more consistent decisions than do individuals.

2. Time constraints: Given time constraints, let the most competent individual, rather than a group, make the decision.

3. Information and communication: In the face of environmental threats such as time pressure and potential serious effects of a decision, groups use less informa- tion and fewer communication channels. This increases the probability of a bad decision.

Reaching Consensus: The Goal of Group Problem-Solving Techniques Groups asked to make decisions must generally reach a consensus. According to a decision-making expert, a consensus  “is reached when all members can say they either agree with the decision or have had their ‘day in court’ and were unable to convince the others of their viewpoint. In the final analysis, everyone agrees to sup- port the outcome.”87 This definition indicates that consensus does not require unani- mous agreement, because group members may still disagree with the final decision but are willing to work toward its success. They must honestly and accurately communicate with each other when trying to reach a consensus. 

Practical Problem-Solving Techniques Decision-making experts have developed a host of problem-solving techniques to aid in problem solving. Three we discuss here are (1) brainstorming, (2) the Delphi technique, and (3) decision support systems.

Brainstorming: A Tool for Generating Ideas Brainstorming  helps groups gen- erate multiple ideas and alternatives for solving problems. Developed by advertising executive A. F. Osborn, brainstorming can apply in a variety of contexts.88 They include solving problems, developing creative ideas for new products, removing performance roadblocks, and developing action plans to achieve goals. Brainstorming sessions begin by asking participants to silently generate ideas or solutions, which then are collected

Assessing Participation in Group Decision Making Please be prepared to answer these questions if your instructor has assigned Self- Assessment 11.3 in Connect.

1. What is your level of minority dissent and participation in decision making?

2. Are you happy with these results?

3. How might you increase the level of minority dissent and participation in this group? Consider the ideas in Table 11.1.

SELF-ASSESSMENT 11.3

448 PART 2 Groups

either in public or anonymously and summarized in some fashion (such as on a white- board or a flip chart).

TIP It’s good to collect the ideas/solutions anonymously if the issue is emotional, political, or highly salient/sensitive to some group members.89

At a second session group members critique and evaluate the alternatives. Today, many brainstorming sessions are conducted electronically. Electronic brainstorming,  some- times called brainwriting, allows participants to submit their ideas and alternatives over a computer network. Webinars work well for this purpose.90

Managers are advised to follow the seven rules for brainstorming used by IDEO, a product design company (see Table 11.2).

Brainstorming is an effective technique for generating new ideas/alternatives, and research reveals that people can be trained to improve their brainstorming skills.91

The Delphi Technique The Delphi technique was originally developed by the RAND Corp. for technological forecasting.92 It now serves as a multipurpose plan- ning tool. The Delphi technique  is a group process that generates anonymous ideas or judgments from physically dispersed experts in multiple rounds of brainstorming.

This technique is useful when face-to-face discussions are impractical, when dis- agreements and conflict are likely to impair communication, when certain individuals might severely dominate group discussion, and when groupthink is a probable outcome of the group process.93

Rule Details

1. Defer judgment. Don’t criticize during the initial stage of generating ideas. Avoid phrases such as “We’ve never done it that way,” “It won’t work,” “It’s too expensive,” and “Our manager will never agree.”

2. Build on the ideas of others.

Encourage participants to extend others’ ideas by avoiding “buts” and using “ands.”

3. Encourage wild ideas. Encourage out-of-the-box thinking. The wilder and more outrageous the ideas, the better.

4. Go for quantity over quality.

Guide participants to generate and write down as many new ideas as possible. Focusing on quantity encourages people to think beyond their favorite ideas.

5. Be visual. Use different colored pens (e.g., red, purple, blue) to write on big sheets of flip chart paper, whiteboards, or poster board that is put on the wall.

6. Stay focused on the topic. Appoint a facilitator to keep the discussion on target.

7. Keep to one conversation at a time.

Set ground rules that no one interrupts another person, dismisses someone’s ideas, shows disrespect, or otherwise behaves rudely.

TABLE 11.2 SEVEN RULES FOR BRAINSTORMING

SOURCE: These suggestions were derived from S. Shellenbarger, “Even People Who Lack Ideas Can Set the Scene for Inspiration; Just Walk Away,” The Wall Street Journal, April 3, 2013, D1–2; “How to Come Up with a Great Idea,” The Wall Street Journal, April 29, 2013, R1–2; and J. Lehrer, “How to Be Creative,” The Wall Street Journal, March 10–11, 2012, C1–2.

449Decision Making and Creativity CHAPTER 11

Decision Support Systems The increased globalization of organizations, the existence of big data, and the advancement of information technology have led to the development of decision support systems. Decision support systems (DSS)  are “computer-based interactive systems that help decision makers to use data and models to solve unstructured problems.”94 For example, Best Buy, Google, GE, Intel, and Microsoft all use internal intranets to obtain input for their DSS from employees. Both Best Buy and Google found DSS systems helpful in estimating the demand for new products and services.95 They also improve information processing and decision making within virtual teams.96

Rosemont Center Addresses Employee-Related Issues

Rosemont Center, a social services agency in Columbus, Ohio, provides help to youth and low- income families. The center is funded by federal, state, and local agencies, along with insurers and private donors.

The center’s rate of employee turnover recently grew from 41 percent to 72 percent over three years. This compares to national turnover rates between 50 and 60 percent for community health fa- cilities. Rosemont also found that employee motivation and engagement declined during the period, as did the quality of service provided.

Sonya Latta, the HR director for the center, was charged with examining turnover, so she put together a team to examine its causes. The team looked at earlier job satisfaction surveys and exit interviews and identified the following themes: People quit because of “demanding work, work/life balance issues relating to night and weekend work, low salaries, on-call responsibilities without ad- ditional compensation for certain programs,” poor career development opportunities, and lack of sup- port for managers.

Latta did not know how to eliminate these potential causes of turnover. She decided to ask the task force to interview managers from other social service agencies in Ohio to discover how they were han- dling similar organizational issues.97

Problem-Solving Application

Apply the 3-Step Problem-Solving Approach

Step 1: Define the problem in this case.

Step 2: Identify the causes. What concepts or theories of OB help to explain the reasons people are quitting?

Step 3: Make your recommendations to resolve the problem.

450 PART 2 Groups

Creativity  is defined here as the process of producing “new and useful ideas con- cerning products, services, processes, and procedures.”98 Being creative can be as simple as locating a new place to hang your car keys or as complex as developing a pocket-size microcomputer. You can create something new, combine or synthesize exist- ing things, or improve or change things.

Let’s consider a model of creativity to gain some insight into ways you can increase your own creativity and, as a manager, do the same for your employees.

A Model of Creativity Figure 11.6 illustrates a model of creativ- ity. You can see that it flows nicely from the Organizing Framework for Under- standing and Applying OB in that a com- bination of person factors and situation factors influence creative performance behaviors, which in turn affect creative outcome effectiveness. Let’s explore this model, starting with a discussion of the difference between creative performance behaviors and creative outcome effectiveness.

Creative Performance Behaviors Produce Creative Outcome Effec- tiveness Creative performance be- haviors  are four key behaviors that drive the production of creative out- comes. Creative outcome effective- ness  is “the joint novelty and usefulness (quality) of a product or service” as judged by others.99

M A J O R Q U E S T I O N

How can I increase my own creative behavior and that of my employees?

T H E B I G G E R P I C T U R E

Can you become more creative if you need to? As a manager, can you improve the creativity

of your group? The answer to both questions is yes. When you consider creativity from an OB

perspective, you will see it as both a process and an outcome (see the Organizing Framework

in Figure 11.1). The process aspect of creativity includes four key behaviors: problem formu-

lation/definition, preparation/information gathering, idea generation, and idea evaluation/

validation. You can increase creativity by following some practical recommendations.

11.7 CREATIVITY

FIGURE 11.6 A MODEL OF CREATIVITY

Creative performance

behaviors

Creative outcome

e�ectiveness

Person factors Situation factors

451Decision Making and Creativity CHAPTER 11

Researchers believe the four behaviors constituting creative performance behaviors unfold according to the following sequence.100

• Problem formulation/definition. Problem formu- lation is the familiar Step 1 in our 3-Step Problem- Solving Approach. The practice of accurately defining the problem will enhance your creativity, and it requires System 1 thinking (System 1 think- ing is intuitive and mainly unconscious).

• Preparation/information gathering. The prepara- tion stage reflects the notion that creativity starts from a base of knowledge. Experts suggest that cre- ativity arises from the convergence of tacit and ex- plicit knowledge. Lowell Wood, the most prolific inventor in U.S. history—he holds 1,085 patents, one more than Thomas Alva Edison—is inventor in residence at Intellectual Ventures.

EXAMPLE Wood is an astrophysicist, a self-taught paleontologist, and a computer scientist. He works hard at being creative. In commenting about his time studying in college and graduate school, he told a writer from Bloomberg Businessweek that he “often failed or received the lowest score on the first exam given in a particular course and improved his marks through repetition and intense effort.” He credits his ability to find creative solutions to problems to the amount of reading he does. He religiously reads three dozen academic journals from varying fields of study. He got this habit from chemist and author Linus Pauling. Wood asked Pauling how he comes up with all his great ideas. Pauling said, “There’s really nothing to it all. You just read, and you remember what you read.”101

As Lowell Wood’s career demonstrates, preparation/information gathering consists of intentionally and actively searching for new information related to a problem.

• Idea generation. Generating ideas requires making new mental connections about the task or problem at hand. This behavior is emphasized in brainstorming and calls for System 1 thinking.

• Idea evaluation/validation. Selecting the most creative and promising idea from among multiple options relies on System 2 thinking (System 2 thinking is analyti- cal and mainly conscious).

Drivers of Creative Performance Behaviors Figure 11.6 shows that person fac- tors and situation factors go into producing the four creative performance behaviors (and they are inputs in the Organizing Framework of OB). Here is a summary of person factors and situation characteristics, identified through research, that drive creative performance behaviors:

• Person factors. Creativity starts with motivation and domain-relevant knowledge. Like Lowell Wood, people need to be motivated to apply their knowledge and capabilities to create new ideas, new products, and solutions to all sorts of prob- lems.102 Other drivers of creativity include the Big Five personality dimensions, self-efficacy, national culture, willingness to tolerate ambiguity, and proactive personality.103

• Situation factors. High-commitment work systems promote creative behavior. High-commitment work systems  rely on selective hiring, comprehensive

Lowell Wood obtained his 1,085th patent in 2015. He is also the inventor or co-inventor on about 2,500 more US. patents that are pending. © Alex Wong/Getty Images

452 PART 2 Groups

training, comparatively high pay, pay contingent on performance, and good benefits.104 We suspect that high-performance work systems demonstrate a form of social support for employees, leading them to put more effort into creative be- haviors. Other important situation factors include interpersonal diversity, time pressure, positive relationships with supervisors and coworkers, mutual account- ability among group members, and spatial configuration of work settings.105 For example, many organizations, such as Google, Zappos, Salesforce.com, and Yahoo!, are designing the work environment to encourage casual conversations among employees who don’t generally work together. A Wall Street Journal re- porter noted that these companies do this by “squeezing workers into smaller spaces so they are more likely to bump into each other.” They also are “installing playful prompts, like trivia games, to get workers talking in traditional conversa- tional dead zones, such as elevators.”106

Organizational culture and climate also contribute to the expression of creative behav- iors.107 Self-Assessment 11.4 measures creativity climate. If you are curious about whether a current or former employer has a climate for creativity, complete this assessment.

This Google office in London illustrates the type of “cozy” work environment that promotes creativity. Would you find this office distracting, or do you think it would increase your creative performance? © View Pictures/UIG/Getty Images

Assessing Climate for Creativity Please be prepared to answer these questions if your instructor has assigned Self- Assessment 11.4 in Connect.

1. What items most and least contributed to the company’s creative climate?

2. Based on your results and suggestions in the Applying OB box below, what would you do to increase the level of creativity in this organization?

SELF-ASSESSMENT 11.4

453Decision Making and Creativity CHAPTER 11

Practical Recommendations for Increasing Creativity While some consultants recommend hypnotism as a good way to increase employees’ creativity, we prefer suggestions derived from research and practical experience. The first recommendation is to effectively manage the four creative performance behaviors. An- other is to allow yourself to enjoy boredom. According to experts, “when we experience boredom, two areas of the brain may be busy working closely together—the executive network, which solves problems, and the so-called default network, which takes over when your brain isn’t involved with something external. The result is enhanced creativ- ity.”108 This suggests that doing “nothing,” such as “just sitting in a café, strolling in the park, lying on the beach, or even staring into space while everyone else is running busily, may be one of the most important creative things we can do,” according to management expert Manfred Kets de Vries.109 Research also has uncovered some practical tips that all of us can use to increase our creativity.

Applying OB

1. Creativity requires motivation. Whether taking the time to relax and think, or ac- tively brainstorming, you must put effort into being creative.

2. Let the subconscious mind do its work. Trying to force your mind to come up with ideas can stifle creativity. Take a walk, relax, or just plain focus on something else.

3. Daydream. Build time for daydreaming into your daily activities. 4. Seek out the unusual. Watching, visiting, or listening to novel or weird stuff can

spark fresh ideas. 5. Surround yourself with the color blue. It promotes relaxation and associative

thinking. 6. Think like a child. Imagine yourself at a young age and think about how you would

have solved the problem at that age. 7. Find time to laugh. Watch a short video or comedic presentation to spur more

insights. 8. Try to solve problems when you are groggy. Grogginess fosters creativity.110

Tips for Sparking Creativity

There is one final issue to consider. Should organizations use extrinsic rewards such as pay and promotions to enhance creativity? While it seems like common sense to do this, research reveals rewards have conflicting effects on creative behavior. When rewards make people feel like they are being controlled, they can reduce creativity. On the other hand, when rewards provide information about what is important and valued, they can increase creativity. Putting it all together, a team of researchers concluded, “The effects of rewards on creative performance depend on the nature of rewards and the context in which the rewards are being offered.”111 This tells us managers should not use a “one size fits all” approach when linking rewards to creative behavior.112

454 PART 2 Groups

You learned that it is critical to master the skills of both decision making and creativity and that you have tools and techniques available to you to do just that. Reinforce your learning with the Key Points below. Consolidate your learning using the Organizing Framework. Then challenge your mas- tery of the material by answering the Major Ques- tions in your own words.

Key Points for Understanding Chapter 11 You learned the following key points.

11.1 RATIONAL AND NONRATIONAL MODELS OF DECISION MAKING

• There are two fundamental ways of thinking. System 1 is more intuitive and unconscious, and System 2 is more analytical and conscious.

• The rational model explains how managers should make decisions.

• The four stages of rational decision making are (1) identify the problem or opportunity, (2) generate alternative solutions, (3) evalu- ate alternatives and select a solution, and (4) implement and evaluate the solution chosen.

• Nonrational models explain how managers actually make decisions. Two nonrational models are the normative model and the in- tuitive model.

• According to the normative model, decision makers are guided by bounded rationality, which represents the fact that decision

makers are “bounded” or restricted by dif- ferent constraints. This limitation leads to satisficing.

• There are two types of intuition: holistic hunches and automated experiences. Intuition is represented by two distinct processes: one is automatic and the second is controlled, and there are two sources of intuition: expertise and feelings.

11.2 DECISION-MAKING BIASES: RULES OF THUMB OR “HEURISTICS”

• Decision-making bias results from the use of judgmental heuristics. The eight biases are (a) confirmation, (b) overconfidence, (c) avail- ability, (d) representativeness, (e) anchoring, (f ) hindsight, (g) framing, and (h) escalation of commitment.

11.3 EVIDENCE-BASED DECISION MAKING

• The goal of evidence-based decision making is to conscientiously use the best data when making decisions.

• Evidence-based decision making has three purposes: to make decisions, to inform deci- sions, and to support decisions.

• Big data denotes the vast quantity of data available for decision making. It makes infor- mation more transparent and usable, allows organizations to measure and collect many types of performance data, allows the seg- mentation of customers, and can help in de- veloping new products.

What Did I Learn?

455Decision Making and Creativity CHAPTER 11

• Three common problem-solving tools are brainstorming, the Delphi technique, and de- cision support systems (DSS).

11.7 CREATIVITY • Creativity is the process of using imagination

and skill to develop a new or unique product, object, process, or thought.

• Four creative performance behaviors to in- crease your creativity are problem formulation/ definition, preparation/information gathering, idea generation, and idea evaluation/validation.

• Creative behaviors are influenced by a host of person factors and situation factors.

The Organizing Framework for Chapter 11 You learned that decision making is a key process at both the individual and group/team levels, and it is affected by a host of person factors such as intu- ition, decision making styles, personality, and self- efficacy. Decision making also is influenced by situation factors associated with the decision situa- tion, organizational culture, and organizational cli- mate. As shown in Figure 11.7, a number of additional processes affect outcomes associated with decision making. Decision making is associ- ated with the individual outcomes of task perfor- mance, career outcomes, and creativity. At the group level, it affects group/team performance and group cohesion and conflict. Finally, decision mak- ing affects an organization’s overall financial per- formance, innovation, and customer satisfaction.

Challenge: Major Questions for Chapter 11 You should now be able to answer the follow- ing questions. Unless you can, have you re- ally processed and internalized the lessons in the chapter? Refer to the Key Points, Figure 11.7, the chapter discussion, and your notes

11.4 FOUR DECISION-MAKING STYLES

• The model of decision-making styles is based on the idea that styles vary along two dimen- sions: value orientation and tolerance for ambiguity.

• There are four styles of decision making: analytical, conceptual, behavioral, and directive.

11.5 A ROAD MAP TO ETHICAL DECISION MAKING

• A decision tree is a graphical representation of the process underlying decisions.

• The ethical decision tree is a structured approach for making ethical decisions.

• Answering a series of questions in the tree leads to a recommended decision.

11.6 GROUP DECISION MAKING

• There are both pros and cons to using groups in the decision-making process.

• The advantages include (1) a greater pool of knowledge, (2) different approaches to a problem, (3) greater commitment to deci- sions, and (4) more visible role modeling.

• The disadvantages to using groups include (1) social pressure to make particular deci- sions, (2) dominance by a few people, (3) goal displacement, and (4) groupthink.

• Groupthink reduces the quality of decisions and is caused by high levels of cohesiveness among group members that overrides indi- vidual differences.

• Seven symptoms of groupthink help predict its occurrence.

• A contingency approach can help in deciding whether to include groups in the decision- making process.

456 PART 2 Groups

4. How do I decide to decide? 5. How can I assess the ethics of my decisions? 6. What are the pros and cons of group decision

making and the various problem-solving tools?

7. How can I increase my own creative behavior and that of my employees?

to revisit and answer the following major questions:

1. How can I integrate rational and nonrational models of decision making?

2. It’s hard to be rational. What biases get in the way?

3. How can I more effectively use evidence- based decision making?

FIGURE 11.7 ORGANIZING FRAMEWORK FOR UNDERSTANDING AND APPLYING OB

INPUTS PROCESSES OUTCOMES

Person Factors • Intuition • Judgmental heuristics • Decision-making styles • Ethical values • Personality • Self-efficacy • National culture

Situation Factors • Decision situation • Organizational culture • Organizational climate

Individual Level • Rational/nonrational decision

making • Ethical decision making • Creativity

Group/Team Level • Rational/nonrational decision

making • Groupthink • Minority dissent • Consensus • Creativity

Organizational Level • Evidence-based decision

making • Creativity

Individual Level • Task performance • Career outcomes • Creativity

Group/Team Level • Group/team performance • Group cohesion and conflict

Organizational Level • Accounting/financial

performance • Legal liability • Innovation • Customer satisfaction

SOURCE: © 2014 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors.

457Decision Making and Creativity CHAPTER 11

IMPLICATIONS FOR ME You can take seven actions to personally apply the material from this chapter. First, work on developing your critical thinking and problem-solving skills. You might begin by trying to solve all the problem-solving application boxes and cases in this book. You can also take an active role in case discussions in other classes. Second, practice iden- tifying problems at work. Consider recommending alternative solutions to your man- ager. Third, examine past decisions that turned out poorly and consider whether you were influenced by any of the eight decision-making biases. Use awareness of these biases to avoid automatically applying them in the future. Fourth, assess your decision- making style and consider its impact on your teamwork at school and on the job. Fifth, use the ethical decision-making tree when you try to solve the legal/ethical challenges at the end of every chapter in this book. Sixth, use the guidelines for brainstorming whenever you brainstorm with others. Finally, find ways to apply the tips for sparking creativity.

IMPLICATIONS FOR MANAGERS There are six implications for managers. First, recognize that your decision-making skills not only affect your career progression, but they also influence a variety of impor- tant individual, group, and organizational outcomes. Second, use awareness of decision-making biases to help you avoid them. Third, analyze the strengths and weak- nesses of your decision-making style. Then try to build on your strengths. Fourth, con- sider how you might use big data in your managerial role. If you lack the statistical background to make this happen, you might take an internal training class or look for one online. Fifth, train your employees to effectively conduct brainstorming sessions. Finally, consider how you can spark creativity among your team by applying the model of creativity. Remember, creative behavior from your team will positively affect a host of important outcomes.

458 PART 2 Groups

Flint, Michigan, is located 70 miles north of Detroit. It has a population of about 99,000, and roughly 42 per- cent of its residents live below the poverty line. Fifty- six percent of the community is African American.

Poor economic conditions were not always the norm for Flint. The city thrived for years thanks to the operation of a large General Motors plant, but that changed when the company downsized the plant in the 1980s.113

This case is about a series of decisions that led to the contamination of Flint’s water supply. Michigan’s gover- nor at the time was Rick Snyder, and the mayor of Flint was Dayne Walling. In 2016 the governor created a six- member task force that included experts on issues ranging from public health to environmental issues to investigate Flint’s water supply.114 Assume you are a member of this task force as you analyze this case.

BACKGROUND ON WHAT HAPPENED Snyder ran for governor in 2010 on the strength of his business and management experience and the prom- ise “to bring outside experts to transform financially languishing municipalities. To do so, he was able to use an existing law that allowed the governor to ap- point an ‘emergency manager’ to trump locally elected officials on key policy decisions.”115 This is an impor- tant point because Snyder appointed two emergency managers who played key roles in this case.

According to The Wall Street Journal, one of the first orders of business for the emergency manager in 2011 was to “find a cheaper source of water than the Detroit Water and Sewerage Department, which had been raising rates for years.” Flint’s City Council voted 7–1 in March 2013 to “leave the Detroit system and use a new system proposed by Genesee County to draw its own water from Lake Huron.” The move to the new system was made official by emergency manager Ed Kurtz in 2013, and state treasurer Andy Dillon approved $81 million in financing. The decision was expected to save the city millions of dollars.116

Kurtz then commissioned a study to find whether the Flint River could be used as the water supply while the pipeline from Lake Huron was being built. The study panel concluded that the river water was one op- tion, but it presented challenges. It’s not clear whether other viable options were considered. Scott Kincaid, a member of Flint’s City Council, told The Wall Street

Journal that using the Flint River as a primary water source “was never discussed” during the council’s vote. One year later, Darnell Early, the new emergency manager, ended the city’s arrangement with Detroit Water and began to implement the plan to use Flint River water.117

The Michigan Department of Environmental Quality (MDEQ) then approved permits to upgrade Flint’s water- treatment plant, enabling it to treat river water. Mike Glasgow, a lab supervisor at the water treatment facility, sent an e-mail to the MDEQ saying “the Flint water treat- ment plant was not ready to start treating Flint River wa- ter and would do so only ‘against my direction.’” He told an investigative committee that no one responded. Wa- ter from the river began to flow to residents’ homes in a matter of days. Although Glasgow thought this was a bad idea, and “nobody asked his opinion in any official way,” he apparently stopped protesting.

Glasgow “testified he expected corrosion-control chemicals to be used in the treatment process, but the state didn’t require the chemicals. The plant would not have been able to add the phosphates in any case . . . because it didn’t have the necessary equipment and would have had to wait three to six months to order and install it. . . . There was a deadline we had to meet. I almost feel like everything was just happening so fast . . . so many different things to look at . . . it was somewhat easy for these things to be overlooked.”118

WHAT HAPPENED TO THE WATER? The water began to turn brown and smell of chlorine. Residents like LeeAnne Walters began to notice changes within her family. Everyone began to lose hair, and the children came down with a host of problems. Walters told a reporter that “the twins, 3-year-old Gavin and Gerrett, kept breaking out in rashes. Gavin had stopped growing. On several occasions, 14-year-old JD suffered abdominal pains so severe that Walters took him to the hospital. At one point, all of LeeAnne’s own eyelashes fell out.”

The city ultimately came to Walters’ home and tested the water, but according to experts, it used an inaccurate method to do so. Officials also suggested that the problem was due to plumbing within the Walters home and not to water source contamination.

It turns out that Walters’ family and many others were suffering from the effects of lead in the water

PROBLEM-SOLVING APPLICATION CASE 

Don’t Drink the Water in Flint, Michigan 

459Decision Making and Creativity CHAPTER 11

of Gov. Snyder’s administration, were bound to have real consequences.”124

The power and authority of the emergency manag- ers making the key decisions also affected the chain of events leading to the tragedy. And officials from two state agencies—the Department of Environmental Quality and the Department of Health and Human Services—contributed as well. They were warned by Miguel Del Toral, an official from the US Environmental Protection Agency, that Flint had not put anticorrosion safeguards in place to protect people from the Flint River water. These state officials also ignored warnings from Marc Edwards and Dr. Mona Hana-Attisha. Finally, the decision to approve permits to improve Flint’s water-treatment plant by the Department of Environ- mental Quality was flawed. Officials apparently misin- terpreted the “federal Lead and Copper Rule, which required the city to control corrosion in pipes to pre- vent the leaching of lead.”125

Local officials played a part in that they went along with the decision to use the Flint River water as an interim supply while the pipeline to Lake Huron was being constructed. Photos show them toasting the decision.126

The governor and his staff demonstrated a lack of oversight. One report noted, “Neither the gover- nor nor the governor’s office took steps to reverse poor decisions by MDEQ and state-appointed emer- gency managers until October 2015, in spite of mounting problems and suggestions to do so by se- nior staff members in the governor’s office, in part because of continued reassurances from MDEQ that the water was safe.” The MDEQ also was faulted for “failing to enforce drinking water regula- tions, while the state health department was criti- cized for failing to ‘adequately and promptly act to protect public health.’”127

As of August 2016, CNN.com reported that “nine current and former state and local officials face counts ranging from willful neglect of duty to conspir- acy over allegations they withheld information from the public about lead contamination in the city's drinking water.”128

APPLY THE 3-STEP PROBLEM- SOLVING APPROACH TO OB

Step 1: Define the problem.

A. Look first at the Outcomes box of the Organizing Framework in Figure 11.7 to help identify the important problem(s) in this case. Remember that a problem is a gap between a desired and a current state. State your problem as a gap, and be sure to consider problems at all three levels. If more than one desired outcome is not being

supply. These effects are more severe for children and can lead to “irreversible neurological consequences.” The lead exposure continued for 17 months despite repeated complaints from Flint residents.

Flint officials sent a notice to all residents in January 2015. It said “that the city’s water contained high lev- els of trihalomethanes, the byproduct of a disinfectant used to treat the water. Over time, these chemicals can cause liver, kidney, and nervous system problems.” The notice warned “that sick and elderly people might be at an increased risk, but it said the water was other- wise safe to drink.”119

The city continued to tell people throughout most of 2015 that the water was fine. Mayor Walling said, “The city water is safe to drink. My family and I drink it and use it every day.”120

Other evidence suggest otherwise. Tests by Marc Edwards, an expert in lead corrosion at Virginia Tech, revealed lead concentrations “more than twice the level the EPA classifies as hazardous waste.” This led to an investigation by Dr. Mona Hanna-Attisha, a pediatrician at Hurley Medical Center. Her findings demonstrated that children under age five had lead concentration levels that had doubled or tripled since the city switched to using Flint River water.121

There was even a spike in Legionnaires’ disease in the Flint area. From June 2014 to November 2015, 87 people were hospitalized, and nine died. Although there is no clear scientific proof that the lead- contaminated water caused these illnesses, one expert concluded, “It’s a ‘reasonable conclusion’ given the link between poor water quality and Legionnaires’ disease in scientific studies elsewhere.”122

Residents of Flint have had many hardships trying to live with the problem. Consider the cost of using bottled water for drinking and washing dishes. Tak- ing showers was also problematic due to the fre- quency of skin rashes associated with bathing in tainted water. A survey showed that 80 percent of the residents substantially changed their bathing habits because of the water crisis. According to a re- port in The New York Times, “Some have found cheap memberships at gyms just outside the city and use them to bathe more than exercise. Others waited in a long line last month [March 2014] to receive con- traptions called Pump-N-Sprays: nozzles and foot pumps that can be attached to 5-gallon bottles of water as makeshift showers.”123

WHAT DID THE INVESTIGATIONS REVEAL? Tax cutting and the desire to save money played a role in the damage to Flint. An economist from Michigan State University concluded that “tax cuts of this magni- tude, some of which were passed during the first year

460 PART 2 Groups

C. Now consider the Processes box shown in Figure 11.7. Consider concepts listed at all three levels. For any concept that might be a cause, ask yourself, Why is this a cause? Again, do this for several iterations to arrive at root causes.

C. To check the accuracy or appropriateness of the causes, map them onto the defined problem.

Step 3: Make your recommendations for solving the problem. Consider whether you want to resolve it, solve it, or dissolve it (see Section 1.5). Which recom- mendation is desirable and feasible?

A. Given the causes identified in Step 2, what are your best recommendations? Use the content in Chapter 11 or one of the earlier chapters to propose a solution.

B. You may find potential solutions in the OB in Action boxes and Applying OB boxes within this chapter. These features provide insights into what other individuals or companies are doing in relationship to the topic at hand.

C. Create an action plan for implementing your recommendations.

accomplished, decide which one is most important and focus on it for steps 2 and 3.

B. Cases have protagonists (key players), and problems are generally viewed from a particular protagonist’s perspective. Take the perspective of a member of the task force investigating this problem.

C. Use details in the case to identify the key problem. Don’t assume, infer, or create problems that are not included in the case. 

Step 2: Identify causes of the problem by using ma- terial from this chapter, summarized in the Organizing Framework shown in Figure 11.7. Causes will appear in either the Inputs box or the Processes box. 

A. Start by looking at the Organizing Framework to identify which person factors, if any, are most likely causes to the defined problem. For each cause, ask yourself, Why is this a cause of the problem? Asking why multiple times is more likely to lead you to root causes of the problem.

B. Follow the same process for the situation factors.

LEGAL/ETHICAL CHALLENGE

Should Apple Comply with the US Government’s Requests to Unlock iPhones?

This case considers the long-term implications of Apple’s decision to deny local and federal requests to unlock data on iPhones. It all started with the terrorist attack perpetrated by Syed Rizwan Farook and his wife, Tashfeen Malik. The couple killed 14 people in San Bernardino, California, in 2016.

The FBI wanted to see the contents of Farook’s phone in order to gain information about others who may have been involved with the terrorist attack. It wanted Apple to “create a special version of the iPhone’s software that only works on the recovered device. Apple has to sign it with its secret keys in order to install it on the subject’s iPhone. This custom version will ‘bypass or disable the auto-erase function’ so it will not wipe the phone after a number of failed passcode guesses.”129

Although Apple had already provided the government “what it has that fits the usual kind of

document demands, including information the ter- rorists had stored in Apple’s cloud service,” it was not enough. The terrorists had quit backing up their phone, which forced the FBI to find a way to bypass Apple’s security features. Apple had no way of do- ing this.130 Apple refused to comply with the re- quest, leading to a court order demanding that it create the software needed to bypass the phone’s security features.

In an interview with ABC, Apple CEO Tim Cook said, “The government shouldn’t be able to force Apple to compromise the privacy of hundreds of millions of iPhone users in order to unlock a terrorist’s iPhone.” He added that it would “force Apple to create ‘the soft- ware equivalent of cancer.’” The company further con- tends that “coding a ‘back door’ in the iPhone would compromise the security of hundreds of millions of its customers.”

461Decision Making and Creativity CHAPTER 11

When pressed about the fact that Apple’s coop- eration might prevent other terrorist attacks, Cook replied, “Some things are hard, and some things are right, and some things are both. This is one of those things.” CEOs Mark Zuckerberg of Facebook and Sundar Pichai of Google supported Cook’s decision.131

As a court showdown loomed in early 2016, the FBI sought the help of hackers to break into the device. Companies in both the United States and Israel partici- pated in the effort and one of them came up with a solution.132  The government then dropped its legal case against Apple.

Although the immediate case of Farook’s phone is over, long-term implications about encryption- protected technology remain. According to US Justice Department spokesperson Melanie Newman, “It re- mains a priority for the government to ensure that law enforcement can obtain crucial digital information to protect national security and public safety, either with cooperation from relevant parties, or through the court system when cooperation fails.” In response, Apple says it “believes deeply that people in the United States and around the world deserve data protection, security, and privacy. Sacrificing one for the other only puts people and countries at greater risk.”133

USA Today concluded that the government’s inter- est in this issue is unlikely to go away because “state and local authorities are confronted with more than 1,000 locked smartphones and other devices, blocking access to potential evidence.”134 A case in point led the Justice Department to seek a court order in April 2016 that would force Apple to unlock an iPhone taken dur- ing a drug investigation in Brooklyn. According to The

Wall Street Journal, “The technical issues in the Brooklyn case are somewhat different than in San Bernardino because they involve different iPhone hard- ware and software. Apple has a technique for pulling data from the Brooklyn phone but is resisting applying it, saying compelling it to do so would amount to gov- ernment overreach and an invasion of customers’ privacy.”135 Cook is adamant in his resolve. He said, “We will not shrink from this responsibility. . . . We need to decide as a nation how much power the government should have over our data and over our privacy.”136

Solving the Challenge Where do you stand on this issue of forcing high-tech firms such as Apple to accommodate governmental re- quests for unlocking phones?

1. I think national security is more important than privacy. After all, we are talking about unlocking the phones of criminals. Technology firms should be forced to comply with government officials’ requests to unblock encrypted devices. 

2. Although our data and privacy need to be protected, I think Apple and other technology companies should be forced to comply only when the case involves terrorism. Encrypted devices should not be unlocked for investigations of other criminal activities.  

3. The privacy of our data and phone contents must be protected. I am not in favor of forcing Apple or any technology firm to unblock encrypted devices.

4. Identify another option.

12 Major Topics I’ll Learn and Questions I Should Be Able to Answer

12.1 Power and Its Basic Forms MAJOR QUESTION: What are the basic forms of power and how can they help achieve my desired outcomes?

12.2 Power Sharing and Empowerment MAJOR QUESTION: How can sharing power increase my power?

12.3 Effectively Influencing Others MAJOR QUESTION: How do influence tactics affect my personal effectiveness?

12.4 Political Tactics and How to Use Them MAJOR QUESTION: What are the many forms of politics, and how can understanding them make me more effective at school, at work, and socially?

12.5 Impression Management MAJOR QUESTION: Do I seek only to impress, or to make a good impression?

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

POWER, INFLUENCE, AND POLITICS

463

This chapter focuses on power and influence. Not only are these two concepts group/ team-level processes in the Organizing Framework for Understanding and Applying OB (see Figure 12.1), but they are arguably two of the most important concepts you’ll study in this book. The reason for this bold assertion is that you are being influenced by and attempting to influence others all day and almost every day of your life, espe- cially at work. Understanding and applying knowledge related to power, influence, empowerment, political tactics, and impression management are extremely valuable to you personally. You’ll see support for this claim in the Organizing Framework, where power and influence relate to most outcomes across all levels of OB. Many different person and situation factors are related to power and influence, but our primary focus is on understanding the power and influence processes themselves and the numer- ous outcomes they affect.

FIGURE 12.1 THE ORGANIZING FRAMEWORK FOR UNDERSTANDING AND APPLYING OB

INPUTS PROCESSES OUTCOMES

Person Factors • Personality • Skills and abilities • Values • Ethics

Situation Factors • Relationship quality • Leadership

Individual Level • Conflict and negotiation • Emotions • Perceptions • Motivation • Trust • Communication • Psychological empowerment

Group/Team Level • Group/team dynamics • Conflict and negotiation • Decision making • Power, influence, and politics • Performance management • Leadership • Trust • Structural empowerment • Impression management

Organizational Level • Human resource policies and

practices • Leading and managing

change and stress • Impression management

Individual Level • Task performance • Work attitudes • Citizenship behavior/

counterproductive behavior • Turnover • Career outcomes • Stress

Group/Team Level • Group/team performance • Group satisfaction • Group cohesion and conflict

Organizational Level • Accounting/financial

performance • Customer satisfaction • Reputation

© 2014 Angelo Kinicki and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors.

Winning at Work Make Meetings Work for You

What’s Ahead in This Chapter The purpose of this chapter is to give you a survival kit for the rough-and-tumble side of organizational life. We explore the interrelated topics of power, empowerment, influence and persuasion, organizational politics, and im- pression management. These topics are in the group and team section of the book because they are about influencing others—individuals and groups. They also are important group-level processes in the Organizing Framework for Applying and Understanding OB. The way you influence others affects their response and your effectiveness. Appropriate, skilled, and ethical use of the knowledge in this chapter will not only help set you apart from your peers, but it will also close the gap between you and those with more experience and bigger titles.

45 minutes will help keep you disciplined and on task.4

5. Match complaints with solutions. Establish the expec- tation that someone who raises an issue or complaint must also provide a potential solution.

6. Control the conversation. Some people ramble, others complain without offering solutions, and still others wan- der off on tangents. You don’t want to be rude, but you must control the meeting. To a rambler, say: “Interesting comment, Taylor. Let’s talk about it after the meeting.” Complainer: “Robin, we’ve heard your issue. What solu- tion do you recommend?” Tangents: “Sylvia, you’ve taken the discussion off the agenda. Is there something we’re missing or something bothering you?”5

7. Be concise. Tell everybody you expect  comments that are concise and on topic, and reinforce this by model- ing the same behavior.

8. Stick to a schedule. Start on time and end on time.

Greg Caimi, a partner at Bain Consulting and author of the firm’s time management study, said: “If time really was money, and accounted for in the same way, many compa- nies would be running huge deficits.”6 Treat your time, and that of others, like money and don’t run deficits!

As one business writer put it: “If you had to identify, in one word, the reason why the human race has not achieved, and never will achieve, its full potential, that word would be ‘meetings.’”1 This cynical and funny quote resonates with employees everywhere. You’ve probably never heard any- one plead for more meetings. One estimate is that the av- erage worker spends four hours a week in meetings and feels that at least half that time is wasted.2 A sample of CEOs revealed they spend on average of 18 hours per week in meetings.3 Yet despite the pain, we know people need to meet, and when managed effectively, groups and teams of people can accomplish great things. We therefore give you practical tools to get the most out of your meet- ings, your colleagues, and your time. 

Common Complaints Three of the most common complaints about meetings are that they:

1. Are unnecessary.

2. Don’t accomplish much.

3. Are too long. 

What to Do to Improve Meetings

1. Make and distribute an agenda. Do more than simply state purpose, day, time, and location. Also tell partici- pants specifically what they need to do to prepare.

2. Set and communicate a goal for the meeting. Explain in advance what you want to accomplish by the time you conclude the meeting, such as a decision or plan of action. Tell participants your goal again at the begin- ning of the meeting.

3. Assign responsibilities. Assign roles and responsibili- ties for the meeting itself, and then assign follow-up or next steps.

4. Set a time limit. Some experts suggest that meetings be limited to no more than 45 minutes. There are at least two benefits to this practice: (1) people typi- cally schedule calendar items to begin on the hour, and a 45-minute limit gives them time to get to and prepare for their next appointment; and (2) tasks ex- pand to fill the time you give them, and allowing only

464

465Power, Influence, and Politics CHAPTER 12

Power  is the discretion and the means to enforce your will over others.7 Defined this way, power is all about influencing others. The more influence you have, the more power- ful you are, and vice versa. To skeptics, Lord Acton’s time-honored declaration that “power tends to corrupt, and absolute power corrupts absolutely” is truer than ever. How- ever, like it or not, power is a fact of life in modern organizations. According to one man- agement writer,

Power must be used because managers must influence those they depend on. Power also is crucial in the development of managers’ self-confidence and willingness to support subordinates. From this perspective, power should be accepted as a natural part of any organization. Managers should recognize and develop their own power to coordinate and support the work of subordinates; it is powerlessness, not power, that undermines organizational effectiveness.8

To make our discussion of power more practical, we distinguish five common forms or bases of power.

Five Bases of Power A popular and useful distinction is made between five bases of power: legitimate, reward, coercive, expert, and referent. (See Figure 12.2.) Each takes a different approach to influencing others and has advantages and drawbacks. Let’s learn more.

Legitimate Power Legitimate power is what most people think of as authority and is anchored to a formal organizational position. Thus, managers who obtain compliance primarily

M A J O R Q U E S T I O N

What are the basic forms of power and how can they help me achieve my desired outcomes?

T H E B I G G E R P I C T U R E

You try to influence people all day, every day of your life, sometimes with great effort and

other times without even being aware. And others are doing the same to you. To influence

people, you draw on various types of power depending on the situation. You might simply tell

a subordinate to do what you want, or you might inspire a coworker with your charismatic

personality and persuasive prowess. The way you choose to influence others, and the types

of power you use, can have important implications for the responses you get. We will help

you gain and apply knowledge to boost your effectiveness at managing outcomes across the

levels of the Organizing Framework for OB.

12.1 POWER AND ITS BASIC FORMS

FIGURE 12.2 THE FIVE BASES OF POWER

Legitimate

Reward

Coercive

Referent

Expert

466 PART 2 Groups

because of their formal authority to make decisions have  legitimate power.  Legiti- mate power may be expressed either positively or negatively.

• Positive legitimate power focuses constructively on job performance. The Priceline Group board utilized this form of power when it ousted CEO Darren Huston for having an inappropriate relationship with another employee, which violated the company’s code of conduct.9 The board not only punished the CEO, but it sent a strong signal to the rest of the organization that policies are enforced consistently— from top to bottom—and reinforced its legitimate power.

• Negative legitimate power, in contrast, tends to be threatening and demeaning to those being influenced, if not simply an exercise in building the power holder’s ego. Many US politicians have used their legislative position power to name vari- ous “monuments” after themselves, from the Charles Rangel Center for Public Ser- vice (New York) to the Ted Stevens Airport (Alaska). The late Robert Byrd from West Virginia had more than 30 monuments named after him.10 More recently, Mylan Pharmaceuticals purchased office space for a new headquarters from a de- velopment company run by its vice chairman and compensation committee chief, Rodney Piatt. The large, mixed-use development is also named after Piatt. Mylan did not publicly disclose Piatt’s interests, which violates Securities and Exchange Commission (SEC) regulations. (Board members and especially compensation committee members have special reporting requirements.)11

Can you think of your own examples of both positive and negative legitimate power?

Reward Power Individuals or organizations have reward power  if they can obtain compliance by promising or granting rewards. Pay-for-performance plans and positive reinforcement practices rely on reward power. The relationship between Exide Technolo- gies and Walmart provides an example. When Exide’s products and services were attrac- tive to Walmart, the company was rewarded with more than $100 million of annual business. But when Walmart withdrew its business and went to a competitor, Johnson Controls, Exide was forced into bankruptcy.12

Coercive Power The ability to make threats of punishment and deliver actual punishment produces coercive power.  The Federal Trade Commission (FTC) filed a lawsuit against DeVry University, one of the largest for-profit colleges in the United States. The FTC charged that the company falsely claimed 90 percent of its graduates gained employment within six months of graduation and earned 15 percent higher sala- ries a year after graduation than graduates of all other colleges.13

Expert Power Valued knowledge or information gives an individual expert power  over those who need such knowledge or information. One way the power of super- visors is enhanced results from knowing about work assignments and pay raises before their employees do. Many also possess expert power due to their past experience and performance.

Referent Power Referent power  comes into play when our personal characteris- tics and social relationships are the reason for others’ compliance. Charisma is com- monly associated with referent power, but you do not need to be the life of the party to possess referent power. In Asian cultures, for instance, characteristics such as age, gender, or family name are sources of social status and referent power. One often-overlooked and underestimated source of referent power is your network of relationships. For instance, say a coworker calls and asks whether you can help her with a project. You tell her you don’t have the knowledge or skill yourself, but that Susan, a member of another depart- ment whom you happen to know, can provide the help your coworker requires. You make the introduction. Because you introduced your coworker to somebody who helped her, you have referent power by virtue of your relationships.

467Power, Influence, and Politics CHAPTER 12

Many employees of consulting firm Promontory Financial Group are former gov- ernment regulators of the US financial industry. One is Mary Shapiro, former head of the Securities and Exchange Commission. The firm helps banks challenge regu- latory rules and influence reforms, such as the Volker rule that, among other things, puts curbs on risky trading by banks.

One bank executive said banks “sometimes hired Promontory to appease regulators, who think highly of the firm’s expertise.”14 Given that the executives at Promontory are themselves former regulators, it is no surprise they have the knowledge to influence today’s regulators.

However, they boost their expert power significantly by also drawing heavily on the relationships or referent power gained in their previous positions in gov- ernment.15  Promontory Financial Group is not alone. As a recent report by the Sunlight Foundation indicated, the number of “lobbyists with former government experience has nearly quadrupled since 1998. . . . Those revolving door lobbyists, mostly from Capitol Hill, accounted for nearly all of the huge growth in lobbying revenue during that period, which increased to $1.32 billion [in 2012] from $703 million in 1998.”16 Lobbying revenues increased another 25 percent between 2012 and 2015.17

YOUR THOUGHTS?

1. What are your thoughts about government regulators working in the private sector to influence the regulations they once set and enforced?

2. If you were able, would you implement any restrictions on the influence of former regulators? Why or why not?

Former Government Officials Wielding Influence at Consulting Group

OB in Action

Referent power drives the success of a number of marketing schemes, such as those used by Tupperware and Mary Kay. These companies and others use independent con- tractors to throw home parties to display and sell goods to friends and families. More re- cently, the solar power industry has been using referent power to expand its business. Companies such as SunWize, SmartPower, and SolarCity assume that some of the best salespeople are those that are happy customers. Some of those customers may be more willing to share their experiences and enthusi- asm with people they know if they are paid a referral fee on resulting sales.”18 The solar companies have found this approach is an easy and effective means of finding new customers, demonstrating that people are more trusting of and more easily influenced by people they know.

Reputation is another aspect of referent power. Many companies hire new CEOs in part to reap the benefits of the executive’s reputation. Valeant, a pharmaceutical company that had a meteoric rise and crash in 2015 and 2016, replaced CEO Mike Pearson with Joseph Papa, the former chief executive of Irish drugmaker Perrigo, known for effectively leading

Some residential solar companies are using the referent power of customers’ relationships (their families and friends) to market and sell their products via home parties, as Tupperware and Mary Kay have done successfully for years. © SasPartout/agefotostock RF

468 PART 2 Groups

companies through tough times and for having high ethical and operational standards. All these were needed at Valeant, whose fall was largely the result of a barrage of congres- sional and SEC probes into its accounting practices and business model, both attributed to Pearson.19 

Now that you’ve learned about the five bases of power, complete Self-Assessment 12.1 to identify which bases you prefer to use. Answering the associated questions will help you understand how the various forms of power can both help and hurt you when trying to in- fluence others.

What Kind of Power Do I Prefer?  Please be prepared to answer these questions if your instructor has assigned Self-Assessment 12.1 in Connect.

1. Which of the five bases of power do you prefer to use?

2. Describe how this form of power helps you at school, at work, and socially.

3. Which of the five bases is your least preferred? What are the implications for you at school, at work, and socially?

4. What two specific things can you do to increase your expert power? Two things to increase your referent power?

Adapted from T. R. Hinkin and C. A. Schriesheim, “Development and Application of New Scales to Measure the French and Raven (1959) Bases of Social Power,” Journal of Applied Psychology, 1989, 567, American Psychological Association.

SELF-ASSESSMENT 12.1

Position vs. Personal Power The first three forms of power—legitimate, reward, and coercive—are often referred to as position power  because the source of influence is associated with a par- ticular job or position within an organization. Managers, for instance, have legiti- mate, reward, and coercive power because they control your pay, your work assignments, your hiring and firing, and your evaluations. In contrast, expert and referent are forms of personal power,  which you possess independent of your position or job. (See Figure 12.3.) 

FIGURE 12.3 BASES OF POWER: POSITION AND PERSONAL

Referent

ExpertLegitimate

Reward

Coercive

Personal Power

Position Power

469Power, Influence, and Politics CHAPTER 12

Power, but for What Purpose? Asserting power is a necessary and sometimes even a subconscious activity in our lives. However, we often overlook the potential outcomes. People tend to have three primary reactions to our attempts to manage and otherwise influence them—resistance, compli- ance, and commitment.

• Resistance. You know what resistance is, but have you ever thought of the many forms and degrees? People can simply be indifferent, be passive-aggressive, or actively resist, to the extent of purposefully undermining or even sabotaging your efforts. The degree and form of resistance thus matter.

• Compliance. Those who comply do only what is expected, nothing more. They exert no extra effort and provide no extra input.

• Commitment. Those who are committed believe in the cause and often go above and beyond to ensure its success.21

Applying OB If you’ve been promoted to manage your group, you suddenly have more legitimate power. But to be an effective manager, you need to exercise that power carefully, in a way that doesn’t alienate but instead motivates your former peers. Satya Nadella confronted such challenges at Microsoft. Assuming the CEO role made him every employee’s boss, including other executives who had been his peers.20 The transition was not easy, and some executives left the company while oth- ers were promoted. The following advice can help you influence former peers who are now subordinates:

1. Don’t show off. It might be tempting to strengthen your leadership role with an aggressive, dominating style, overseeing every detail. But that approach stirs resentment.

2. Do accept responsibility. Don’t try to remain buddies if it will undermine your abil- ity to get the job done. Collaborate when it’s the best way to accomplish goals, not to save a friendship.

3. Do your homework. Work with your new supervisor to define goals for yourself and your team. Strengthen your network of mentors to improve your management skills. Meet with your staff to go over your vision and expectations. Setting a direc- tion for the team enhances your credibility (via expert power).

4. Pay attention to team members’ concerns. Show them how meeting the group’s goals will put them on track toward meeting their own needs.

What do you think would be the greatest challenge to being promoted and having to manage your peers? Imagine, for example, that you are suddenly responsible for grading classmates. Explain how you would apply the four recommendations given above.

From Teammate to Manager: Taking Charge

These two general sources of power frequently collide when you are promoted and then must manage the people who just yesterday were your peers. The following Apply- ing OB box offers good advice.

470 PART 2 Groups

These outcomes are obviously differ- ent, and the differences matter! One factor that certainly can affect others’ responses is how ethically or responsi- bly you utilize any form of power.

Using Power Responsibly, Ethically, and Effectively Leaders who do not use their power responsibly risk losing it. This has been shown time and again in political uprisings and the ouster of government leaders, as well as in the persistent waves of scandals in business and resulting downfalls of executives. Research is mounting that pro-social employees who ascend to leadership and use their position to benefit the group outper- form pro-self individuals who become leaders and use the position to benefit themselves. These same pro-social leaders were also more effective at fos- tering contributions from their teams.22 

For managers who want to avoid the potential pitfalls and wield power responsibly, a step in the right direction is understanding the difference between commit- ment and mere compliance. Responsible managers strive to use power for the good of oth- ers, rather than simply for personal gain. General Wesley Clark, former NATO commander, put it this way:

Sometimes threatening works, but it usually brings with it adverse consequences— like resentment and a desire to get even in some way. People don’t like to be reminded that they are inferior in power or status. And so, in business, it is important to motivate through the power of shared goals, shared objectives, and shared standards.23

As Clark describes, sometimes you only need somebody to comply, but at other times you need genuine commitment. Choose the types of power you use accordingly.

How Do the Five Bases of Power Relate to Commitment and Compliance? Research, practice, and perhaps your own experiences reveal that, as shown in Figure 12.4:

• Reward, coercive, and negative legitimate power tend to produce compliance (and sometimes resistance).

• Positive legitimate power, expert power, and referent power tend to foster commitment.

Once again, commitment is superior to compliance because it is driven by internal or intrinsic motivation. Committed employees tend to be self-starters who do not require close supervision. Intrinsically motivated self-starters are success factors in today’s flatter, team-oriented organizations. In contrast, employees who merely comply require frequent jolts of power from the boss to keep them going.

Bases of Power and Outcomes in the Organizing Framework Research gives us some insights into how different bases of power affect important outcomes in the

As a senior level commander, General Wesley Clark needed to influence people all of the time. Of course he had considerable position power as a general, which in many instances enabled him to get others to comply with his wishes and orders. However, he also knew that sometimes he needed others to actually buy-in and commit. He therefore chose the bases of power accordingly to be more effective. © John Thys/AFP/Getty Images

471Power, Influence, and Politics CHAPTER 12

Organizing Framework, such as job performance, job satisfaction, and turnover. These relationships also are summarized in Figure 12.5.

• Expert and referent power have a generally positive effect. • Reward and legitimate power have a slightly positive effect. • Coercive power has a slightly negative effect.24

Now that you have a clearer sense of what power is and how it operates, let’s learn about how sharing power can actually increase your own power.

FIGURE 12.4 BASES OF POWER: COMMITMENT VS. COMPLIANCE

Tend to Foster

Commitment

Tend to Produce

Compliance (or Resistance)

Reward

Coercive

Referent

ExpertLegitimate negative

Legitimate positive

FIGURE 12.5 BASES OF POWER AND EFFECTIVENESS OF OUTCOMES

Legitimate

Reward

Coercive

Slightly Negative

E�ect

Slightly Positive E�ect

Generally Positive E�ect

Referent

Expert

472 PART 2 Groups

Empowerment  consists of efforts to “enhance employee performance, well-being, and positive attitudes.”25 Empowerment has been shown to favorably influence many outcomes in the Organizing Framework, such as job satisfaction, organizational commit- ment, performance, turnover, and employee stress.26 

Besides these benefits, empowerment is becoming a necessity. Time-management research done by Bain & Co. revealed that executives today receive on average of 30,000 (electronic) communications per year—up from a mere 1,000 in the 1970s. At this rate executives will soon spend more than one day every week managing electronic commu- nications. Some already spend the equivalent of two days a week in meetings.27  This means no individual, executive or not, can accomplish all the necessary tasks alone. You must share the load. To help in this effort, research and practice related to empowerment have focused on two general forms—structural and psychological.

Structural Empowerment Structural empowerment  transfers authority and responsibilities from management to employees. Some popular ways to do this are via the job design and job characteristics forms of motivation. Managers and their employers can boost employee empowerment by changing policies, procedures, job responsibilities, and team designs. Any of these that increase the effectiveness of employee decision making are likely also to increase their performance, well-being, and job-related attitudes. To better understand and apply this knowledge about empowerment, it is necessary to think about the issue correctly.

Thinking the Right Way about Empowerment Effective empowerment does not include giving decision-making authority to just any employee in every situation. That would be both foolish and irresponsible—and would not be empowerment. Instead, decision-making authority and other broader responsibilities should be shared only with those who are competent to do what is necessary. There are two pitfalls to avoid:

1. Empowerment is not a zero-sum game in which one person’s gain is another’s loss.28 Sharing power, via empowerment, is a means of increasing your own power. As Frances Hesselbein, the woman credited with modernizing the Girl Scouts of the USA, put it: “The more power you give away, the more you have.”29 Authoritarian

M A J O R Q U E S T I O N

How can sharing power increase my power?

T H E B I G G E R P I C T U R E

How much do you like being told what to do? Chances are you didn’t like it as a kid and like it

even less as an adult at work. Thankfully, many managers and organizations are looking to

employees to solve problems and make decisions, instead of always telling them what to do

and how to do it. This increased participation and sharing of authority is the result of empow-

erment. We explore different forms of empowerment (structural and psychological), various

degrees of empowerment, and ways to foster it in individuals, teams, and organizations.

12.2 POWER SHARING AND EMPOWERMENT

473Power, Influence, and Politics CHAPTER 12

managers who view employee empowerment as a threat to their own power are miss- ing the point because of their win–lose thinking.

2. Empowerment is a matter of degree, not an either–or proposition. Figure 12.6 illus- trates how power can be shifted to the hands of nonmanagers step by step. The over- riding goal is to increase productivity and competitiveness in organizations. Each step in this evolution increases the power of organizational contributors who tradi- tionally were told what, when, and how to do things.

Sharing Power to Increase Your Power and Performance A common ele- ment of empowerment is pushing decision-making authority to lower levels. This is illustrated in Figure 12.6. At the level of least empowerment, managers and leaders practice domination, characterized as authoritarian power wherein they make all of the decisions and then hand them down to employees. Next is consultation, which oc- curs when employees are asked for their input, but managers ultimately make the deci- sions themselves. Participation is when managers and employees jointly identify problems and solutions—power is shared more or less evenly. Finally, delegation oc- curs when managers turn over decision-making authority to employees and remove themselves from the process. It is important to note that one level of empowerment is not necessarily better than another. Like many other things related to OB, the degree of power sharing should match the needs of the situation and the capabilities of the individuals or teams involved. 

Twitter, for example, embodies its belief in empowerment in its mission statement: “To give everyone the power to create and share ideas and information instantly, without barriers.”30 This sounds like a definition of empowerment, and Twitter emphasizes this not just with its customers but also with its employees. Brian Schipper, vice president of human resources, said, “When we’re building the platform and developing new products and policies, we want to empower individuals and be a force for good in the world.”31 This is both empowering and inspiring. 

FIGURE 12.6 THE EVOLUTION OF POWER FROM DOMINATION TO DELEGATION

D e

g re

e o

f E

m p

o w

e rm

e n

t

Management Style DominationNone

High

Consultation Participation Delegation

Authoritarian power

Manager/leader imposes decisions.

Influence sharing Manager/leader

consults followers when making

decisions.

Power sharing Manager/leader

and followers jointly make decisions.

Power distribution Followers granted authority to make

decisions.