Organization Behavior
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Organizational_Behavior_Improving_Performance_and_Commitment_in.pdf
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JASON A. COLQUITT University of Georgia
JEFFERY A. LEPINE Arizona State University
MICHAEL J. WESSON Texas A&M University
ORGANIZATIONAL BEHAVIOR Improving Performance and Commitment in the Workplace
Sixth Edition
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ORGANIZATIONAL BEHAVIOR: IMPROVING PERFORMANCE AND COMMITMENT IN THE WORKPLACE, SIXTH EDITION
Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2019 by McGraw-Hill Education. All rights reserved. Printed in the United States of America. Previous editions © 2017, 2015, and 2013. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of McGraw-Hill Education, including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning.
Some ancillaries, including electronic and print components, may not be available to customers outside the United States.
This book is printed on acid-free paper.
1 2 3 4 5 6 7 8 9 LWI 21 20 19 18
ISBN 978-1-259-92766-9 MHID 1-259-92766-0
Portfolio Manager: Michael Ablassmeir Lead Product Developer: Kelly Delso Senior Product Developer: Kelly I. Pekelder Directors of Development: Rose Koos and Meghan Campbell Executive Marketing Manager: Debbie Clare Content Project Managers: Melissa M. Leick, Keri Johnson, Karen Jozefowicz
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All credits appearing on page or at the end of the book are considered to be an extension of the copyright page.
Library of Congress Cataloging-in-Publication Data
Names: Colquitt, Jason, author. | LePine, Jeffery A., author. | Wesson, Michael J., author. Title: Organizational behavior: improving performance and commitment in the workplace / Jason A Colquitt, Jeffery A LePine, Michael J. Wesson. Description: Sixth Edition. | Dubuque : McGraw-Hill Education, 2018. | Revised edition of the authors’ Organizational behavior, [2016] Identifiers: LCCN 2017048454 | ISBN 9781259927669 (hardback : alk. paper) Subjects: LCSH: Organizational behavior. | Personnel management. | Strategic planning. | Consumer satisfaction. | Job satisfaction. | BISAC: BUSINESS & ECONOMICS / Organizational Behavior. Classification: LCC HD58.7 .C6255 2018 | DDC 658.3—dc23 LC record available at https://lccn.loc.gov/2017048454
The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a website does not indicate an endorsement by the authors or McGraw-Hill Education, and McGraw-Hill Education does not guarantee the accuracy of the information presented at these sites.
mheducation.com/highered
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To Catherine, Cameron, Riley, and Connor, and also to Mom, Dad, Alan, and Shawn. The most wonderful family I could imagine, two times over.
–J.A.C.
To Marcie, Izzy, and Eli, who support me and fill my life with meaning and joy.
–J.A.L.
To Liesl and Dylan: Their support in all I do is incomparable. They are my life and I love them both. To my parents: They provide a foundation that never wavers.
–M.J.W.
Dedication
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JASON A. COLQUITT Jason A. Colquitt is the William H. Willson Distinguished Chair in the Department of Management at the University of Georgia’s Terry College of Business. He received his PhD from Michigan State University’s Eli Broad Graduate School of Management and earned his BS in psychology from Indiana University. He has taught organizational behavior and human resource management at the undergraduate, masters, and executive levels and has also taught research methods at the doctoral level. He has received awards for teaching excellence at the undergraduate, masters, and executive levels.
Jason’s research interests include organizational justice, trust, team effectiveness, and per- sonality influences on task and learning performance. He has published more than 40 articles on these and other topics in Academy of Management Journal, Academy of Management Review, Journal of Applied Psychology, Organizational Behavior and Human Decision Processes, and Personnel Psychology. He recently served as editor-in-chief for Academy of Management Journal and has served on a number of editorial boards, including Academy of Management Journal, Academy of Management Review, Administrative Science Quarterly, Journal of Applied Psychology, Organizational Behavior and Human Decision Processes, and Personnel Psychology. He is a recip- ient of the Society for Industrial and Organizational Psychology’s Distinguished Early Career Contributions Award and the Cummings Scholar Award for early to mid-career achievement, sponsored by the Organizational Behavior division of the Academy of Management. He was also elected to be a representative-at-large for the Organizational Behavior division.
Jason enjoys spending time with his wife, Catherine, and three sons, Cameron, Riley, and Connor. His hobbies include playing basketball, playing the trumpet, watching movies, and rooting on (in no particular order) the Pacers, Colts, Cubs, Spartans, Gators, Hoosiers, and Bulldogs.
JEFFERY A. LEPINE Jeffery A. LePine is the PetSmart Chair in Leadership in the Department of Management at Arizona State University’s W.P. Carey School of Business. He received his PhD in orga- nizational behavior from the Eli Broad Graduate School of Management at Michigan State University. He also earned an MS in management from Florida State University and a BS in finance from the University of Connecticut. He has taught organizational behavior, human resource management, and management of groups and teams at undergraduate and graduate levels. He has also delivered courses to doctoral students in research methods, meta-analysis, scale development, and human resource management. He received the Outstanding Doctoral Professor Award from the W.P. Carey School of Business for his teaching and mentoring of doctoral students and his work as PhD program director.
Jeff’s research interests include team functioning and effectiveness, individual and team adaptation, citizenship behavior, voice, employee engagement, and occupational stress. He has published more than 30 articles on these and other topics in Academy of Management Journal, Academy of Management Review, Journal of Applied Psychology, Organizational Behavior and Human Decision Processes, Personnel Psychology, and Journal of Management. He has served as associate editor of Academy of Management Review and Journal of Applied Psychology. He has also served on the editorial boards of Academy of Management Journal,
About the Authors
Courtesy of Jason Colquitt
Courtesy of Jeffrey A. LePine
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A B O U T T H E A U T H O R S
Academy of Management Review, Journal of Applied Psychology, Organizational Behavior and Human Decision Processes, Personnel Psychology, Journal of Management, Journal of Organizational Behavior, and Journal of Occupational and Organizational Psychology. He is a recipient of the Society for Industrial and Organizational Psychology’s Distinguished Early Career Contributions Award and the Cummings Scholar Award for early to mid-career achieve- ment, sponsored by the Organizational Behavior division of the Academy of Management. He was also elected to the Executive Committee of the Human Resource Division of the Academy of Management. Prior to earning his PhD, Jeff was an officer in the U.S. Air Force.
Jeff spends most of his free time with his wife, Marcie, daughter, Izzy, and son, Eli. He also enjoys playing guitar, hiking and mountain biking, working on his growing collection of clas- sic Pontiacs, and serving as the caretaker of his family’s desert hideaway, tentatively called the Goat Farm.
MICHAEL J. WESSON Michael J. Wesson is an associate professor in the Management Department at Texas A&M University’s Mays Business School. He received his PhD from Michigan State University’s Eli Broad Graduate School of Management. He also holds an MS in human resource man- agement from Texas A&M University and a BBA from Baylor University. He has taught orga- nizational behavior and human resource management–based classes at all levels but currently spends most of his time teaching Mays MBAs, EMBAs, and executive development at Texas A&M. He was awarded Texas A&M’s Montague Center for Teaching Excellence Award.
Michael’s research interests include organizational justice, leadership, organizational entry (employee recruitment, selection, and socialization), person–organization fit, and com- pensation and benefits. His articles have been published in journals such as Journal of Applied Psychology, Personnel Psychology, Academy of Management Review, and Organizational Behavior and Human Decision Processes. He has served on several editorial boards and has been an ad hoc reviewer for many others. He is active in the Academy of Management and the Society for Industrial and Organizational Psychology. Prior to returning to school, Michael worked as a human resources manager for a Fortune 500 firm. He has served as a consultant to the automotive supplier, health care, oil and gas, and technology industries in areas dealing with recruiting, selection, onboarding, compensation, and turnover.
Michael spends most of his time trying to keep up with his wife, Liesl, and son, Dylan. He is a self-admitted food and wine snob, home theater aficionado, and college sports addict. (Gig ’em Aggies!)
Courtesy of Michael J. Wesson
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Why did we decide to write this text? Well, for starters, organizational behavior (OB) remains a fascinating topic that everyone can relate to (because everyone either has worked or is going to work in the future). What makes people effective at their job? What makes them want to stay with their employer? What makes work enjoyable? Those are all fundamental questions that organizational behavior research can help answer. However, our desire to write this text also grew out of our own experiences (and frustrations) teaching OB courses using other texts. We found that students would end the semester with a common set of questions that we felt we could answer if given the chance to write our own text. With that in mind, Organizational Behavior: Improving Performance and Commitment in the Workplace was writ- ten to answer the following questions.
DOES ANY OF THIS STUFF REALLY MATTER? Organizational behavior might be the most relevant class any student ever takes, but that doesn’t always shine through in OB texts. The introductory section of our text contains two chapters not included in other texts: Job Performance and Organizational Commitment. Being good at one’s job and wanting to stay with one’s employer are obviously critical concerns for employees and managers alike. After describing these topics in detail, every remaining chapter in the text links that chapter’s content to performance and commitment. Students can then better appreciate the practical relevance of organizational behavior concepts.
IF THAT THEORY DOESN’T WORK, THEN WHY IS IT IN THE TEXT? In putting together this text, we were guided by the question, “What would OB texts look like if all of them were first written now, rather than decades ago?” We found that many of the organizational behavior texts on the market include outdated (and indeed, scientifi- cally disproven!) models or theories, presenting them sometimes as fact or possibly for the sake of completeness or historical context. Our students were always frustrated by the fact that they had to read about, learn, and potentially be tested on material that we knew to be wrong. Although historical context can be important at times, we believe that focusing on so-called evidence-based management is paramount in today’s fast-paced classes. Thus, this text includes new and emerging topics that others leave out and excludes flawed and outdated topics that some other texts leave in.
HOW DOES ALL THIS STUFF FIT TOGETHER? Organizational behavior is a diverse and multidisciplinary field, and it’s not always easy to see how all its topics fit together. Our text deals with this issue in two ways. First, all of the chapters in our text are organized around an integrative model that opens each chapter (see the back of the text). That model provides students with a road map of the course, showing them where they’ve been and where they’re going. Second, our chapters are tightly focused around specific topics and aren’t “grab bag–ish” in nature. Our hope is that students (and instructors) won’t ever come across a topic and think, “Why is this topic being discussed in this chapter?”
Preface
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P R E F A C E
DOES THIS STUFF HAVE TO BE SO DRY? Research on motivation to learn shows that students learn more when they have an intrinsic interest in the topic, but many OB texts do little to stimulate that interest. Put simply, we wanted to create a text that students enjoy reading. To do that, we used a more informal, con- versational style when writing the text. We also tried to use company examples that students will be familiar with and find compelling. Finally, we included insert boxes, self-assessments, and exercises that students should find engaging (and sometimes even entertaining!).
NEW AND IMPROVED COVERAGE
• Chapter 1: What Is OB?—This chapter now opens with a wraparound case on IKEA.
The case describes the personality of the company’s founder, Ingvar Kamprad, as well
as the values at play in the corporate culture. The case also describes some of the prac-
tices IKEA uses to maximize job satisfaction and motivation, along with some of its
corporate social responsibility initiatives. The OB at the Bookstore selection has been
changed to How to Have a Good Day. This book describes how research in psychology,
neuroscience, and behavioral economics can be used to improve employee attitudes
and behaviors.
• Chapter 2: Job Performance—This chapter features a new wraparound case on General
Electric (GE), which describes how and why the company’s approach to managing
employee job performance has changed. With a new emphasis on creativity and rapid
innovation, GE abandoned formal annual job performance evaluations. Our OB at the
Bookstore feature has been changed to Mastering Civility. This book overviews implica-
tions and costs of incivility in the workplace, and outlines steps that employees and
managers can take to manage this form of counterproductive behavior. Our new OB on
Screen feature, Sully, provides a glimpse of extraordinary job performance as well as
the dilemma of distinguishing job performance behavior from results.
• Chapter 3: Organizational Commitment—PwC serves as the wraparound case in this edi-
tion, spotlighting the things the company does to build loyalty among Millennials. The
case also describes studies that PwC performed on what Millennials value at work, and
how those studies match the findings of scientific research. One key finding was that
Millennials value leisure time more than prior generations. That insight triggered a new
initiative at PwC where managers work with employees to chart out a schedule that
suits them.
• Chapter 4: Job Satisfaction—This chapter’s wraparound case now highlights Publix,
the Florida-based supermarket chain. Publix does a number of things to keep their
employees satisfied, including promoting from within, paying above market wages, and
reimbursing tuition. The case also focuses on Publix’s employee stock ownership plan
and what owning a piece of the company can do for job satisfaction. The OB at the
Bookstore selection is now The Power of Meaning, which contrasts the pursuit of short-
term happiness with the pursuit of long-term meaning. The book describes a number of
ways to pursue meaning, including work that promotes a purpose. The OB on Screen
feature examines the subjective nature of job satisfaction. Paterson depicts a bus driver
who has a seemingly boring, repetitive job. Yet he winds up satisfied because it affords
him free time for his passion in life: poetry.
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viii P R E F A C E
• Chapter 5: Stress—Honeywell is now featured in the wraparound case for this chapter.
Honeywell has grown and evolved through mergers and acquisitions, and this has placed
a variety of stressful demands on employees. The case describes how the company’s
response to a slowdown in one of its businesses created even more stress. Our OB on
Screen feature has been changed to Deepwater Horizon. The film provides insight into
the nature of role conflict and how it contributed to the the largest marine oil spill in
U.S. history. The bestselling book, Work Without Stress, is now our OB at the Bookstore
feature. The authors argue that rumination is responsible for turning demands into
stress, and thus, the whole key to managing stress, is to stop ruminating. The authors
provide many suggestions for putting this rather provocative idea into practice.
• Chapter 6: Motivation—This chapter now opens with a wraparound case on Google. The
case describes exactly how Google evaluates and compensates its employees so that it
can motivate them. The case also describes Google’s philosophy on “star” employees,
including how to retain talent that contributes fundamentally more than the norm. The
OB on Screen feature focuses on psychological empowerment using Star Trek Beyond,
where Captain Kirk struggles with purpose given the monotony of his job and the infi-
nite vastness of space. The OB at the Bookstore focuses on Deep Work, a form of work
that requires a distraction-free state that pushes the limits of one’s ability. The book
argues that deep work is increasingly vital in a knowledge economy, but several factors
conspire to limit the motivation to perform such work.
• Chapter 7: Trust, Justice, and Ethics—SeaWorld serves as the wraparound case for the
revised chapter. The case spotlights the controversies over the park’s orca shows that
have caused it to phase out those attractions. The case also describes how corporate
ethics are often shaped by a combination of public pressure and government interven-
tion. The Founder is the OB on Screen selection for the chapter. The film details how
Ray Kroc wrested control over McDonald’s from the brothers who founded the com-
pany, including performing actions that the brothers deemed unethical. The OB at the
Bookstore selection is now Radical Candor, which describes how trust can be cultivated
by a combination of caring personally, but also challenging directly. Of course, the lat-
ter component is difficult for many managers, so the book provides some specific tips
for improvement.
• Chapter 8: Learning and Decision Making—Bridgewater Associates and the highly
unique “radical transparency” philosophy established by hedge fund manager and
founder Ray Dalio serves as the wraparound case in this edition. The case describes
how Bridgewater is attempting, by using decisions made by people in the organization
paired with organizational “principles,” to develop a software system that will make the
majority of management decisions after Dalio is gone. The OB on Screen feature now
focuses on The Big Short, highlighting how decision-making errors were at the core of
the financial crash of 2008. A new OB at the Bookstore feature highlights Peak and
the development of expertise through deliberate practice. The chapter also includes a
number of research updates as well as several new company examples.
• Chapter 9: Personality and Cultural Values—This chapter’s wraparound case is now the
Chicago Cubs. The case describes the personality traits that Theo Epstein, the club’s
president, looked for to turn around the losing history of the franchise. La La Land is
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P R E F A C E
the chapter’s OB on Screen selection, with the film spotlighting a musician who pos-
sesses high openness to experience but low conscientiousness. He’s therefore talented
with his music, but finds it difficult to hold down a job. The OB at the Bookstore selec-
tion is Grit, which focuses on a personality trait that represents a combination of pas-
sion and perseverance. It is the “gritty” employees that remain resilient and determined
in the face of adversity.
• Chapter 10: Ability—This chapter’s wraparound case now features the Federal Bureau of
Investigation (FBI). The case describes how various jobs at the FBI require unique abil-
ities, and how the organization ensures that agents possess these abilities when they’re
hired. The case also discusses how the FBI introduced annual physical fitness testing
to deal with the potential erosion of physical abilities after agents are hired. Humility
Is the New Smart is now our OB at the Bookstore feature. The authors argue that jobs
are quickly being replaced by smart machines, and following from this, the definition
of what it means to be smart is also changing. Specifically, the authors propose that
being smart now involves interpersonal capacities, such as humility and putting others
first, that promote cooperation and collaborative efforts. The new movie for our OB on
Screen feature is Hidden Figures. This film provides vivid real-world examples of vari-
ous quantitative abilities, and their role in the U.S. space program during the 1960s.
• Chapter 11: Teams: Characteristics and Diversity—Whole Foods serves as the new wrap-
around case for this chapter. The case discusses how Whole Foods relies on teams,
which are largely self-managed, at all levels of the organization. The case describes how
existing teams are involved in the hiring of new team members. The OB on Screen fea-
ture now discusses the movie Arrival, which provides excellent examples of task, goal,
and outcome interdependence. Inclusion is now discussed in our OB at the Bookstore
feature. The author of this book describes how a special type of parallel team, the
employee resource group or ERG, provides support and guidance to members of their
communities who may be dealing with diversity- or inclusion-related challenges.
• Chapter 12: Teams: Processes and Communication—This chapter includes a new wrap-
around case featuring Microsoft. Microsoft responded to an erosion of their position
in the tech industry by restructuring around multidisciplinary teams. The case focuses
on how Microsoft redesigned two buildings to inspire creativity and encourage col-
laboration among team members. The OB on Screen feature now centers on the movie
Spotlight. This film illustrates how boundary-spanning activities are crucial to the effec-
tiveness of a team of investigative reporters. Our OB at the Bookstore feature has been
changed to Smart Collaboration. This book addresses the challenge of managing teams
in the professional services industry, where highly specialized employees are typically
not keen on collaborating.
• Chapter 13: Leadership: Power and Negotiation—This chapter features a new wraparound
case on Zappos’s move toward “holocracy”—a self-management oriented organizational
structure. Tony Hsieh (CEO) expects this move to get rid of organizational politics and
take away organizational forms of power, which should allow Zappos employees to
manage themselves and make decisions for the right reasons. It isn’t going well. The
chapter has been updated with new research including our decision to move “exchange”
to a lower tier of effectiveness as an influence tactic based on a new meta-analysis.
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x P R E F A C E
The new OB on Screen feature uses Bridge of Spies to illustrate what might lead one to
take a competing style of conflict resolution in a negotiation. Pre-suasion is the new OB
at the Bookstore feature, which focuses on the best way to set things up to be able to
influence others.
• Chapter 14: Leadership: Styles and Behaviors—The chapter begins with a new wrap-
around case featuring the consistent Mary Barra of General Motors. The opener and
the case highlight Barra’s push to make GM’s culture shift from slow to fast. Several
examples, including Barra’s push toward her vision of autonomous cars, highlight her
transformational leadership style. A new OB at the Bookstore feature highlights Sydney
Finkelstein’s Superbosses, which is a unique book that ends up being more about trans-
formational leadership than it lets on. The new OB on Screen is The Martian, which
gives students a chance to utilize the time-driven model of leadership to see if the
leader made the correct decision in the movie. The chapter includes a number of new
research findings as well as updated company examples, including organizations such
as American Apparel, Chobani, and GoPro.
• Chapter 15: Organizational Structure—Apple is the focus of this chapter’s new wraparound
case that highlights the company’s dogged determination to stay with the functional
structure that has served them well for so long amid lots of pressure to change. A number
of new company examples such as Facebook, Chipotle, and Cargill have been added as
well as the introduction of “Dunbar’s number” (150), which a number of companies pay
attention to when it comes to size and structure. A new OB at the Bookstore features
The Silo Effect, which illustrates the trials and tribulations of how organizational structure
(and culture) plays havoc with our perceptions and ability to communicate inside an
organization.
• Chapter 16: Organizational Culture—This chapter has a new wraparound case that
focuses on both Delta and United. The case spotlights the differences in the cultures at
the two carriers—differences that can explain specific actions and their larger reputa-
tions. The OB at the Bookstore feature now highlights Originals, a book that describes
the kinds of people who “go against the grain” by performing creative acts. Many orga-
nizations try to foster a culture that encourages such originality. The OB on Screen
selection is now The Circle, a film that spotlights a faux Silicon Valley corporation
whose work is ethically murky. The film provides a vivid example of several elements
of organizational culture. A number of new company examples such as Wells Fargo,
Cirque du Soleil, and Whataburger have been added.
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An enormous number of persons played a role in helping us put this text together. Truth be told, we had no idea that we would have to rely on and put our success in the hands of so many different people! Each of them had unique and useful contributions to make toward the publication of this text, and they deserve and thus receive our sincere gratitude.
We thank Michael Ablassmeir, our executive editor, for his suggestions and guidance on the last four editions, and John Weimeister for filling that same role with earlier editions. We are thankful to both for allowing us to write the text that we wanted to write. Thanks also go out to Kelly Pekelder, our product developer, for keeping us on track and being such a pleasure to work with during this revision. We also owe much gratitude to our marketing manager, Debbie Clare. We also would like to thank Melissa Leick, Egzon Shaqiri, and Ann Marie Jannette at McGraw-Hill, as they are the masterminds of much of how the text actu- ally looks; their work and effort were spectacular. A special thanks also goes out to Jessica Rodell (University of Georgia) and Megan Endres (Eastern Michigan University) for their assistance with our CONNECT content.
We would also like to thank our students at the undergraduate, masters, and executive levels who were taught with this text for their constructive feedback toward making it more effective in the classroom. Thanks also to our PhD students for allowing us to take time out from research projects to focus on this effort.
Finally, we thank our families, who gave up substantial amounts of time with us and put up with the stress that necessarily comes at times during an endeavor such as this.
Jason Colquitt
Jeff LePine
Michael Wesson
Acknowledgments
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OB ON SCREEN
OB AT THE BOOKSTORE
Text Features: OB Insert Boxes
“ Very comprehensive. Well laid-out. Interesting. Good mix of theoretical material and practical insights.”
This feature uses memorable scenes from recent films to bring OB concepts to life. Films like Hidden Figures, The Founder, La La Land, The Martian, Sully, and The Big Short offer rich, vivid examples that grab the attention of students.
This feature links the content in each chapter to a mainstream, popular business book. Books like Originals, The Power of Meaning, Grit, and Peak represent the gateway to OB for many students. This feature helps them put those books in a larger context.
©Moviestore collection Ltd/Alamy
©Roberts Publishing Services
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OB INTERNATIONALLY
OB ASSESSMENTS
This feature helps students see where they stand on key OB concepts in each chapter. Students gain insights into their personality, their emotional intelligence, their style of leadership, and their ability to cope with stress, which can help them understand their reactions to the working world.
“ The material presented in this chapter is well balanced. Again, the tables, charts, and figures help to organize the material for students.”
Changes in technology, communications, and economic forces have made business more global and international than ever. This feature spotlights the impact of glo- balization on the organizational behavior concepts described in this text. It describes cross-cultural differences in OB theories, how to apply them in international corpora- tions, and how to use OB to manage cultural diversity in the workplace.
©iChzigo/Shutterstock
©Namas Bhojani/AP Images
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■ Connect content is authored by the world’s best subject matter experts, and is available to your class through a simple and intuitive interface.
■ The Connect eBook makes it easy for students to access their reading material on smartphones and tablets. They can study on the go and don’t need internet access to use the eBook as a reference, with full functionality.
■ Multimedia content such as videos, simulations, and games drive student engagement and critical thinking skills.
©McGraw-Hill Education
■ Connect’s assignments help students contextualize what they’ve learned through application, so they can better understand the material and think critically.
■ Connect will create a personalized study path customized to individual student needs through SmartBook®.
■ SmartBook helps students study more efficiently by delivering an interactive reading experience through adaptive highlighting and review.
McGraw-Hill Connect® is a highly reliable, easy-to- use homework and learning management solution that utilizes learning science and award-winning adaptive tools to improve student results.
73% of instructors who use Connect
require it; instructor satisfaction increases by 28% when Connect
is required.
Homework and Adaptive Learning
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Education products more intelligent, reliable, and precise.
Using Connect improves retention rates by 19.8%, passing rates by 12.7%, and exam scores by 9.1%.
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More students earn As and Bs when they
use Connect.
www.mheducation.com/connect
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■ Connect Insight® generates easy-to-read reports on individual students, the class as a whole, and on specific assignments.
■ The Connect Insight dashboard delivers data on performance, study behavior, and effort. Instructors can quickly identify students who struggle and focus on material that the class has yet to master.
■ Connect automatically grades assignments and quizzes, providing easy-to-read reports on individual and class performance.
■ Connect integrates with your LMS to provide single sign-on and automatic syncing of grades. Integration with Blackboard®, D2L®, and Canvas also provides automatic syncing of the course calendar and assignment-level linking.
■ Connect offers comprehensive service, support, and training throughout every phase of your implementation.
■ If you’re looking for some guidance on how to use Connect, or want to learn tips and tricks from super users, you can find tutorials as you work. Our Digital Faculty Consultants and Student Ambassadors offer insight into how to achieve the results you want with Connect.
Trusted Service and Support
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Additional Resources
PowerPoint® Presentation Slides The PowerPoint presentation slides are designed to help instructors deliver course content in a way that maintains students’ engagement and attention. The slides include a Notes section that offers specific tips for using the slides (and the text). The Notes also provide bridges to many of the resources in the Instructor’s Manual, including innovative teaching tips and suggestions for using OB on Screen. Finally, the PowerPoints also include bonus OB Assessments for instructors who want additional assessments for their teaching.
Instructor’s Manual Prepared by Jason Colquitt, this manual was developed to help you get the most out of the text in your own teaching. It contains an outline of the chapters, innovative teaching tips to use with your students, and notes and answers for the end-of-chapter materials. It also provides a guide for the assessments in the text, and suggestions for using the OB on Screen feature. The manual also contains additional cases, exercises, and OB on Screen selections from earlier editions of the text, giving you extra content to use in your teaching.
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Brief Contents
PART 1 INTRODUCTION TO ORGANIZATIONAL BEHAVIOR 3
CHAPTER 1 4 What Is Organizational Behavior?
CHAPTER 2 28 Job Performance
CHAPTER 3 60 Organizational Commitment
PART 2 INDIVIDUAL MECHANISMS 91 CHAPTER 4 92 Job Satisfaction
CHAPTER 5 124 Stress
CHAPTER 6 160 Motivation
CHAPTER 7 194 Trust, Justice, and Ethics
CHAPTER 8 232 Learning and Decision Making
PART 3 INDIVIDUAL CHARACTERISTICS 263 CHAPTER 9 264 Personality and Cultural Values
CHAPTER 10 304 Ability
PART 4 GROUP MECHANISMS 335 CHAPTER 11 336 Teams: Characteristics and Diversity
CHAPTER 12 374 Teams: Processes and Communication
CHAPTER 13 410 Leadership: Power and Negotiation
CHAPTER 14 442 Leadership: Styles and Behaviors
PART 5 ORGANIZATIONAL MECHANISMS 479 CHAPTER 15 480 Organizational Structure
CHAPTER 16 508 Organizational Culture
INTEGRATIVE CASES 540
GLOSSARY/SUBJECT INDEX 549
NAME INDEX 568
COMPANY INDEX 583
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Table of Contents
PART 1 INTRODUCTION TO ORGANIZATIONAL BEHAVIOR 3
CHAPTER 1 4 What Is Organizational Behavior?
What Is Organizational Behavior? 6
Organizational Behavior Defined 6
An Integrative Model of OB 7
Does Organizational Behavior Matter? 9
Building a Conceptual Argument 10
Research Evidence 12
So What’s So Hard? 14
How Do We “Know” What We Know About Organizational
Behavior? 16
Summary: Moving Forward in This Book 20
TAKEAWAYS 23
KEY TERMS 23
DISCUSSION QUESTIONS 23
CASE 24
EXERCISE 25
ENDNOTES 26
CHAPTER 2 28 Job Performance
Job Performance 30
What Does It Mean to Be a “Good Performer”? 31
Task Performance 31
Citizenship Behavior 35
Counterproductive Behavior 39
Summary: What Does It Mean to Be a “Good Performer”? 44
Trends Affecting Performance 45
Knowledge Work 45
Service Work 45
Application: Performance Management 46
Management by Objectives 46
Behaviorally Anchored Rating Scales 47
360-Degree Feedback 48
Forced Ranking 48
Social Networking Systems 49
TAKEAWAYS 49
KEY TERMS 50
DISCUSSION QUESTIONS 50
CASE 51
EXERCISE 52
ENDNOTES 52
CHAPTER 3 60 Organizational Commitment
Organizational Commitment 62
What Does It Mean to Be “Committed”? 63
Types of Commitment 63
Withdrawal Behavior 69
Summary: What Does It Mean to Be “Committed”? 75
Trends That Affect Commitment 75
Diversity of the Workforce 75
The Changing Employee–Employer Relationship 77
Application: Commitment Initiatives 79
TAKEAWAYS 81
KEY TERMS 82
DISCUSSION QUESTIONS 82
CASE 83
EXERCISE 84
ENDNOTES 85
PART 2 INDIVIDUAL MECHANISMS 91 CHAPTER 4 92 Job Satisfaction
Job Satisfaction 94
Why Are Some Employees More Satisfied Than Others? 94
Value Fulfillment 94
Satisfaction with the Work Itself 98
Mood and Emotions 104
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T A B L E O F C O N T E N T S
Summary: Why Are Some Employees More Satisfied
Than Others? 109
How Important Is Job Satisfaction? 109
Life Satisfaction 111
Application: Tracking Satisfaction 113
TAKEAWAYS 115
KEY TERMS 116
DISCUSSION QUESTIONS 116
CASE 117
EXERCISE 117
ENDNOTES 118
CHAPTER 5 124 Stress
Stress 126
Why Are Some Employees More “Stressed” Than Others? 127
Types of Stressors 128
How Do People Cope with Stressors? 132
The Experience of Strain 135
Accounting for Individuals in the Stress Process 137
Summary: Why Are Some Employees More “Stressed”
Than Others? 139
How Important Is Stress? 140
Application: Stress Management 143
Assessment 143
Reducing Stressors 143
Providing Resources 145
Reducing Strains 146
TAKEAWAYS 149
KEY TERMS 149
DISCUSSION QUESTIONS 150
CASE 150
EXERCISE 151
ENDNOTES 152
CHAPTER 6 160 Motivation
Motivation 162
Why Are Some Employees More Motivated Than
Others? 164
Expectancy Theory 164
Goal Setting Theory 170
Equity Theory 173
Psychological Empowerment 177
Summary: Why Are Some Employees More Motivated
Than Others? 180
How Important Is Motivation? 180
Application: Compensation Systems 182
TAKEAWAYS 185
KEY TERMS 185
DISCUSSION QUESTIONS 186
CASE 186
EXERCISE 187
ENDNOTES 188
CHAPTER 7 194 Trust, Justice, and Ethics
Trust, Justice, and Ethics 196
Why Are Some Authorities More Trusted Than Others? 197
Trust 197
Justice 203
Ethics 208
Summary: Why Are Some Authorities More Trusted
Than Others? 215
How Important Is Trust? 217
Application: Social Responsibility 219
TAKEAWAYS 220
KEY TERMS 220
DISCUSSION QUESTIONS 221
CASE 221
EXERCISE 222
ENDNOTES 223
CHAPTER 8 232 Learning and Decision Making
Learning and Decision Making 234
Why Do Some Employees Learn to Make Decisions
Better Than Others? 234
Types of Knowledge 234
Methods of Learning 236
Methods of Decision Making 241
Decision-Making Problems 246
Summary: Why Do Some Employees Learn to Make
Decisions Better Than Others? 251
How Important Is Learning? 253
Application: Training 254
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TAKEAWAYS 255
KEY TERMS 255
DISCUSSION QUESTIONS 256
CASE 256
EXERCISE 257
ENDNOTES 258
PART 3 INDIVIDUAL CHARACTERISTICS 263 CHAPTER 9 264 Personality and Cultural Values
Personality and Cultural Values 266
How Can We Describe What Employees Are Like? 266
The Big Five Taxonomy 266
Other Taxonomies of Personality 279
Cultural Values 280
Summary: How Can We Describe What Employees
Are Like? 283
How Important Are Personality and Cultural Values? 285
Application: Personality Tests 287
TAKEAWAYS 291
KEY TERMS 292
DISCUSSION QUESTIONS 292
CASE 293
EXERCISE 294
ENDNOTES 294
CHAPTER 10 304 Ability
Ability 306
What Does It Mean for an Employee to Be “Able”? 307
Cognitive Ability 307
Emotional Ability 313
Physical Ability 318
Summary: What Does It Mean for an Employee
to Be “Able”? 320
How Important Is Ability? 321
Application: Selecting High Cognitive Ability Employees 323
TAKEAWAYS 326
KEY TERMS 326
DISCUSSION QUESTIONS 327
CASE 327
EXERCISE 328
ENDNOTES 329
PART 4 GROUP MECHANISMS 335 CHAPTER 11 336 Teams: Characteristics and Diversity
Team Characteristics and Diversity 338
What Characteristics Can Be Used to Describe Teams? 339
Team Types 339
Variations Within Team Types 342
Team Interdependence 345
Team Composition 349
Summary: What Characteristics Can Be Used
to Describe Teams? 357
How Important Are Team Characteristics? 358
Application: Team Compensation 359
TAKEAWAYS 360
KEY TERMS 360
DISCUSSION QUESTIONS 361
CASE 361
EXERCISE 362
ENDNOTES 364
CHAPTER 12 374 Teams: Processes and Communication
Team Processes and Communication 376
Why Are Some Teams More Than the Sum of Their
Parts? 376
Taskwork Processes 378
Teamwork Proceses 384
Communication 386
Team States 389
Summary: Why Are Some Teams More Than the Sum
of Their Parts? 392
How Important Are Team Processes? 392
Application: Training Teams 395
Transportable Teamwork Competencies 395
Cross-Training 396
Team Process Training 396
Team Building 397
TAKEAWAYS 398
KEY TERMS 398
DISCUSSION QUESTIONS 399
CASE 399
EXERCISE 400
ENDNOTES 402
xx T A B L E O F C O N T E N T S
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T A B L E O F C O N T E N T S
CHAPTER 13 410 Leadership: Power and Negotiation
Leadership: Power and Negotiation 412
Why Are Some Leaders More Powerful Than Others? 412
Acquiring Power 412
Using Influence 416
Power and Influence in Action 420
Negotiations 426
Summary: Why Are Some Leaders More Powerful
Than Others? 429
How Important Are Power and Influence? 429
Application: Alternative Dispute Resolution 431
TAKEAWAYS 432
KEY TERMS 433
DISCUSSION QUESTIONS 433
CASE 434
EXERCISE 434
ENDNOTES 435
CHAPTER 14 442 Leadership: Styles and Behaviors
Leadership: Styles and Behaviors 444
Why Are Some Leaders More Effective Than Others? 446
Leader Decision-Making Styles 447
Day-to-Day Leadership Behaviors 452
Transformational Leadership Behaviors 456
Summary: Why Are Some Leaders More Effective
Than Others? 461
How Important Is Leadership? 464
Application: Leadership Training 466
TAKEAWAYS 467
KEY TERMS 467
DISCUSSION QUESTIONS 468
CASE 468
EXERCISE 469
ENDNOTES 470
PART 5 ORGANIZATIONAL MECHANISMS 479 CHAPTER 15 480 Organizational Structure
Organizational Structure 482
Why Do Some Organizations Have Different Structures
Than Others? 482
Elements of Organizational Structure 483
Organizational Design 489
Common Organizational Forms 491
Summary: Why Do Some Organizations Have Different
Structures Than Others? 497
How Important Is Structure? 498
Application: Restructuring 500
TAKEAWAYS 501
KEY TERMS 501
DISCUSSION QUESTIONS 502
CASE 502
EXERCISE 503
ENDNOTES 504
CHAPTER 16 508 Organizational Culture
Organizational Culture 510
Why Do Some Organizations Have Different Cultures
Than Others? 510
Culture Components 510
General Culture Types 514
Specific Culture Types 514
Culture Strength 517
Maintaining An Organizational Culture 520
Changing An Organizational Culture 523
Summary: Why Do Some Organizations Have Different
Cultures Than Others? 526
How Important Is Organizational Culture? 527
Application: Managing Socialization 529
TAKEAWAYS 531
KEY TERMS 532
DISCUSSION QUESTIONS 532
CASE 532
EXERCISE 533
ENDNOTES 534
INTEGRATIVE CASES 540
GLOSSARY/SUBJECT INDEX 549
NAME INDEX 568
COMPANY INDEX 583
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ORGANIZATIONAL BEHAVIOR Improving Performance and Commitment in the Workplace
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1
CHAPTER 1 What Is Organizational Behavior?
CHAPTER 2 Job Performance
CHAPTER 3 Organizational Commitment
P A R T
INTRODUCTION TO ORGANIZATIONAL BEHAVIOR
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1
LEARNING GOALS
1.1 What is the definition of “organizational behavior” (OB)? 1.2 What are the two primary outcomes in studies of OB? 1.3 What factors affect the two primary OB outcomes? 1.4 Why might firms that are good at OB tend to be more profitable? 1.5 What is the role of theory in the scientific method? 1.6 How are correlations interpreted?
After reading this chapter, you should be able to answer the following questions:
What Is Organizational Behavior?
Leadership: Styles &
Behaviors
Leadership: Power &
Negotiation
Teams: Processes &
Communication
Teams: Characteristics &
Diversity
Organizational Structure
Organizational Culture
Stress
Motivation
Trust, Justice, & Ethics
Organizational Commitment
Job Performance
Job Satisfaction
Learning & Decision Making
Ability
Personality & Cultural Values
INDIVIDUAL CHARACTERISTICS
INDIVIDUAL CHARACTERISTICS
GROUP MECHANISMS
GROUP MECHANISMS
ORGANIZATIONAL MECHANISMS
ORGANIZATIONAL MECHANISMS
INDIVIDUAL OUTCOMES INDIVIDUAL OUTCOMES
INDIVIDUAL MECHANISMS
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IKEA
D oes the name Ingvar Kamprad ring a bell? What if I told you he grew up on a farm called Elmtaryd near the village of Agunnaryd? That’s right—he’s the
founder of Sweden-based IKEA (and now you know what the letters stand for). IKEA operates 389 stores worldwide, employing 183,000 employees. Kamprad built his massive company from the humblest of beginnings. At the age of five, he began buying boxes of matches in order to sell them by the book for profit. He founded IKEA in 1943 at the age of seventeen, using seed money from his father. Kamprad began by selling knickknacks and trinkets before moving on to furniture five years later. IKEA expanded beyond Swe- den in 1963 and opened its first U.S. store in Philadelphia in 1985.
Kamprad has been described as having the classic entre- preneur’s personality—highly conscientiousness, highly cre- ative, but very willing to disagree with the opinions and views of others. Those traits helped him make a number of inno- vations, including shipping furniture using “flatpacking”— where the buyer assembles the finished product. Today, Kamprad’s company tries to instill specific traits in its employees and its organizational culture. New hires are
given the “Little IKEA Dictionary” that describes the impor- tance of humility, heritage, simplicity, equality, togetherness, and sustainability.
How do such values shape the experience of working at IKEA? In terms of equality, Lars Petersson, the leader of IKEA’s Conshohocken, Pennsylvania-based U.S. headquar- ters, notes that “Hierarchy is not a big Swedish thing . . . We actually work with trust rather than control.” The com- pany has also successfully combatted the glass ceiling, with more than half of senior managerial roles filled by women. In terms of sustainability, Nabeela Ixtabalan, the head of human resources, notes “My boss would say, ‘Go home, you’ve been here too long,’ . . . Here, if you can’t do your job successfully in a reasonable amount of time, you’re doing something wrong.” IKEA’s pay philosophy is also sensitive to the long term. Hourly wages average $15.45—double the minimum wage—and are indexed to MIT’s Living Wage Calculator. And part-time employees qualify for health benefits if they work 20 hours per week. These and other aspects of life at IKEA explain why it was recently named one of Fortune’s 100 Best Companies to Work For.
©Kumar Sriskandan/Alamy
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W H AT I S O R G A N I Z AT I O N A L B E H AV I O R ?
Before we describe what the field of organizational behavior studies, take a moment to ponder this question: Who was the single worst coworker you’ve ever had? Picture fellow students who col- laborated with you on class projects; colleagues from part-time or summer jobs; or peers, subordi- nates, or supervisors working in your current organization. What did this coworker do that earned him or her “worst coworker” status? Was it some of the behaviors shown in the right column of Table 1-1 (or perhaps all of them)? Now take a moment to consider the single best coworker you’ve ever had. Again, what did this coworker do to earn “best coworker” status—some or most of the behaviors shown in the left column of Table 1-1?
If you found yourself working alongside the two people profiled in the table, two questions would be foremost on your mind: “Why does the worst coworker act that way?” and “Why does the best coworker act that way?” Once you understand why the two coworkers act so differently, you might be able to figure out ways to interact with the worst coworker more effectively (thereby making your working life a bit more pleasant). If you happen to be a manager, you might formu- late plans for how to improve attitudes and behaviors in the unit. Such plans could include how to screen applicants, train and socialize new organizational members, manage evaluations and rewards for performance, and deal with conflicts that arise between and among employees. With- out understanding why employees act the way they do, it’s extremely hard to find a way to change their attitudes and behaviors at work.
O R GA N I Z AT I O N A L B E H AV I O R D E F I N E D Organizational behavior (OB) is a field of study devoted to understanding, explaining, and ulti- mately improving the attitudes and behaviors of individuals and groups in organizations. Scholars
1.1 What is the definition of “organizational behavior” (OB)?
TABLE 1-1 The Best of Coworkers, the Worst of Coworkers
THE BEST THE WORST
Have you ever had a coworker who usually acted this way?
Have you ever had a coworker who usually acted this way?
Got the job done, without having to be man- aged or reminded
Did not got the job done, even with a great deal of hand-holding
Adapted when something needed to be changed or done differently
Was resistant to any and every form of change, even when changes were beneficial
Was always a “good sport,” even when bad things happened at work
Whined and complained, no matter what was happening
Attended optional meetings or functions to support colleagues
Optional meetings? Was too lazy to make it to some required meetings and functions!
Helped new coworkers or people who seemed to need a hand
Made fun of new coworkers or people who seemed to need a hand
Felt an attachment and obligation to the employer for the long haul
Seemed to always be looking for something else, even if it wasn’t better
Was first to arrive, last to leave Was first to leave for lunch, last to return
The Million-Dollar Question: Why do these two employees act so differently?
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in management departments of universities and scientists in business organizations conduct research on OB. The findings from those research studies are then applied by managers or con- sultants to see whether they help meet “real-world” challenges. OB can be contrasted with two other courses commonly offered in management departments: human resource management and strategic management. Human resource management takes the theories and principles studied in OB and explores the “nuts-and-bolts” applications of those principles in organizations. An OB study might explore the relationship between learning and job performance, whereas a human resource management study might examine the best ways to structure training programs to pro- mote employee learning. Strategic management focuses on the product choices and industry char- acteristics that affect an organization’s profitability. A strategic management study might examine the relationship between firm diversification (when a firm expands into a new product segment) and firm profitability.
The theories and concepts found in OB are actually drawn from a wide variety of disciplines. For example, research on job performance and individual characteristics draws primarily from studies in industrial and organizational psychology. Research on satisfaction, emotions, and team processes draws heavily from social psychology. Sociology research is vital to research on team characteristics and organizational structure, and anthropology research helps inform the study of organizational culture. Finally, models from economics are used to understand motivation, learning, and decision making. This diversity brings a unique quality to the study of OB, as most students will be able to find a particular topic that’s intrinsically interesting and thought provok- ing to them.
A N I N T E G R AT I V E M O D E L O F O B Because of the diversity in its topics and disciplinary roots, it is common for students in an organi- zational behavior class to wonder, “How does all this stuff fit together?” How does what gets cov- ered in Chapter 3 relate to what gets covered in Chapter 13? To clarify such issues, this textbook is structured around an integrative model of OB, shown in Figure 1-1, that’s designed to provide a roadmap for the field of organizational behavior. The model shows how the topics in the next 15 chapters—represented by the 15 ovals in the model—all fit together. We should stress that there are other potential ways of combining the 15 topics, and Figure 1-1 likely oversimplifies the connec- tions among the topics. Still, we believe the model provides a helpful guide as you move through this course. Figure 1-1 includes five different kinds of topics.
INDIVIDUAL OUTCOMES The right-most portion of the model contains the two primary out- comes of interest to organizational behavior researchers (and employees and managers in orga- nizations): job performance and organizational commitment. Most employees have two primary goals for their working lives: to perform their jobs well and to remain a member of an organiza- tion that they respect. Likewise, most managers have two primary goals for their employees: to maximize their job performance and to ensure that they stay with the firm for a significant length of time. As described in Chapter 2, there are several specific behaviors that, when taken together, constitute good job performance. Similarly, as described in Chapter 3, there are a number of beliefs, attitudes, and emotions that cause an employee to remain committed to an employer.
This book starts by covering job performance and organizational commitment so that you can better understand the two primary organizational behavior goals. Our hope is that by using perfor- mance and commitment as starting points, we can highlight the practical importance of OB top- ics. After all, what could be more important than having employees who perform well and want to stay with the company? This structure also enables us to conclude the other chapters in the book with sections that describe the relationships between each chapter’s topic and performance and commitment. For example, the chapter on motivation concludes by describing the relation- ships between motivation and performance and motivation and commitment. In this way, you’ll learn which of the topics in the model are most useful for understanding your own attitudes and behaviors.
1.2 What are the two primary outcomes in studies of OB?
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INDIVIDUAL MECHANISMS Our integrative model also illustrates a number of individual mechanisms that directly affect job performance and organizational commitment. These include job satisfaction, which captures what employees feel when thinking about their jobs and doing their day-to-day work (Chapter 4). Another individual mechanism is stress, which reflects employees’ psychological responses to job demands that tax or exceed their capacities (Chapter 5). The model also includes motivation, which captures the energetic forces that drive employees’ work effort (Chapter 6). Trust, justice, and ethics reflect the degree to which employees feel that their company does business with fairness, honesty, and integrity (Chapter 7). The final individual mechanism
1.3 What factors affect the two primary OB outcomes?
FIGURE 1-1 Integrative Model of Organizational Behavior
Leadership: Styles &
Behaviors
Leadership: Power &
Negotiation
Teams: Processes &
Communication
Teams: Characteristics &
Diversity
Organizational Structure
Organizational Culture
Stress
Motivation
Trust, Justice, & Ethics
Organizational Commitment
Job Performance
Job Satisfaction
Learning & Decision Making
Ability
Personality & Cultural Values
INDIVIDUAL CHARACTERISTICS
INDIVIDUAL CHARACTERISTICS
GROUP MECHANISMS
GROUP MECHANISMS
ORGANIZATIONAL MECHANISMS
ORGANIZATIONAL MECHANISMS
INDIVIDUAL OUTCOMES INDIVIDUAL OUTCOMES
INDIVIDUAL MECHANISMS
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shown in the model is learning and decision making, which deals with how employees gain job knowledge and how they use that knowledge to make accurate judgments on the job (Chapter 8).
INDIVIDUAL CHARACTERISTICS Of course, if satisfaction, stress, motivation, and so forth are key drivers of job performance and organizational commitment, it becomes important to understand what factors improve those individual mechanisms. Two such factors reflect the char- acteristics of individual employees. Personality and cultural values reflect the various traits and tendencies that describe how people act, with commonly studied traits including extraversion, conscientiousness, and collectivism. As described in Chapter 9, personality and cultural values affect the way people behave at work, the kinds of tasks they’re interested in, and how they react to events that happen on the job. The model also examines ability, which describes the cognitive abilities (verbal, quantitative, etc.), emotional skills (other awareness, emotion regulation, etc.), and physical abilities (strength, endurance, etc.) that employees bring to a job. As described in Chapter 10, ability influences the kinds of tasks an employee is good at (and not so good at).
GROUP MECHANISMS Our integrative model also acknowledges that employees don’t work alone. Instead, they typically work in one or more work teams led by some formal (or sometimes informal) leader. Like the individual characteristics, these group mechanisms shape satisfac- tion, stress, motivation, trust, and learning. Chapter 11 covers team characteristics and diversity— describing how teams are formed, staffed, and composed, and how team members come to rely on one another as they do their work. Chapter 12 then covers team processes and communication—how teams behave, including their coordination, conflict, and cohesion. The next two chapters focus on the leaders of those teams. We first describe how individuals become leaders in the first place, covering leader power and negotiation to summarize how individuals attain authority over others (Chapter 13). We then describe how leaders behave in their leadership roles, as leader styles and behaviors capture the specific actions that leaders take to influence others at work (Chapter 14).
ORGANIZATIONAL MECHANISMS Finally, our integrative model acknowledges that the teams described in the prior section are grouped into larger organizations that themselves affect satisfaction, stress, motivation, and so forth. For example, every company has an organizational structure that dictates how the units within the firm link to (and communicate with) other units (Chapter 15). Sometimes structures are centralized around a decision-making authority, whereas other times, structures are decentralized, affording each unit some autonomy. Every company also has an organizational culture that captures “the way things are” in the organization—shared knowledge about the values and beliefs that shape employee attitudes and behaviors (Chapter 16).
SUMMARY Each of the chapters in this textbook will open with a depiction of this integrative model, with the subject of each chapter highlighted. We hope that this opening will serve as a roadmap for the course—showing you where you are, where you’ve been, and where you’re going. We also hope that the model will give you a feel for the “big picture” of OB—showing you how all the OB topics are connected.
D O E S O R G A N I Z AT I O N A L B E H AV I O R M AT T E R ?
Having described exactly what OB is, it’s time to discuss another fundamental question: Does it really matter? Is there any value in taking a class on this subject, other than fulfilling some require- ment of your program? (You might guess that we’re biased in our answers to these questions, given that we wrote a book on the subject!) Few would disagree that organizations need to know principles of accounting and finance to be successful; it would be impossible to conduct business without such knowledge. Similarly, few would disagree that organizations need to know principles of marketing, as consumers need to know about the firm’s products and what makes those prod- ucts unique or noteworthy.
However, people sometimes wonder whether a firm’s ability to manage OB has any bearing on its bottom-line profitability. After all, if a firm has a good-enough product, won’t people buy it
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regardless of how happy, motivated, or committed its workforce is? Perhaps for a time, but effec- tive OB can help keep a product good over the long term. This same argument can be made in reverse: If a firm has a bad-enough product, isn’t it true that people won’t buy it, regardless of how happy, motivated, or committed its workforce is? Again, perhaps for a time, but the effective man- agement of OB can help make a product get better, incrementally, over the long term.
Consider this pop quiz about the automotive industry: Which two automakers were rated tops in car technology by J.D. Power in 2016? BMW was one—can you guess the other? The answer is Hyundai (yes, Hyundai).1 The study focused on entertainment, connectivity, navigation, collision avoidance, driving assistance, and convenience. The South Korean automaker has come a long way since comedian Jay Leno likened a Hyundai to a bobsled (“It has no room, you have to push it to get going, and it only goes downhill!”).2 Today its Sonatas and Elantras are built in an very modern factory in Montgomery, Alabama. The factory employs 3000 workers and pays $17 per hour as an entry-level wage.3 Much of Hyundai’s turnaround can be credited to the company’s increased emphasis on quality. Work teams devoted to quality have been expanded eightfold, and almost all employees are enrolled in special training programs devoted to quality issues.4 Hyundai represents a case in which OB principles are being applied across cultures. Our OB Internationally feature spotlights such international and cross-cultural applications of OB topics in each chapter.
B U I L D I N G A C O N C E P T UA L A R G U M E N T Of course, we shouldn’t just accept it on faith that OB matters, nor should we merely look for specific companies that appear to support the premise. What we need instead is a conceptual argument that captures why OB might affect the bottom-line profitability of an organization. One such argument is based on the resource-based view of organizations. This perspective describes what exactly makes resources valuable—that is, what makes them capable of creating long-term profits for the firm.5
Changes in technology, communications, and economic forces have made business more global and international than ever. To use Thomas Friedman’s line, “The world is flat.” The playing field has been leveled between the United States and the rest of the world. This feature spotlights the impact of globalization on the organizational behavior concepts described in this book and covers a variety of topics.
Cross-Cultural Differences. Research in cross-cultural organizational behavior has illustrated that national cultures affect many of the relationships in our integrative model. Put differently, there is little that we know about OB that is “universal” or “culture free.”
International Corporations. An increasing number of organizations are international in scope, with both foreign and domestic operations. Applying organizational behavior concepts in these firms represents a special challenge—should policies and practices be consistent across locations or tailored to meet the needs of the culture?
Expatriation. Working as an expatriate—an employee who lives outside his or her native country—can be particularly challenging. What factors influence expatriates’ job performance and organizational commitment levels?
Managing Diversity. More and more work groups are composed of members of different cultural backgrounds. What are the special challenges involved in leading and working in such groups?
OB INTERNATIONALLY
Sources: T.L. Friedman, “The World Is Flat,” Farrar, Straus and Giroux, New York, 2002; and H. Aguinis and C.A. Henl, “The Search for Universals in Cross-Cultural Organizational Behavior.” In Organizational Behavior: The State of the Science, ed. J. Greenberg, Mahwah, NJ: Erlbaum, 2003, pp. 373–411.
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A firm’s resources include finan- cial (revenue, equity, etc.) and physical (buildings, machines, technology) resources, but they also include resources related to organizational behavior, such as the knowledge, ability, and wis- dom of the workforce, as well as the image, culture, and goodwill of the organization.
The resource-based view suggests that the value of resources depends on several factors, shown in Figure 1-2. For example, a resource is more valuable when it is rare. Diamonds, oil, Babe Ruth baseball cards, and Action Comics #1 (the debut of Superman) are all expensive precisely because they are rare. Good people are also rare—witness the adage “good people are hard to find.” Ask yourself what percentage of the people you’ve worked with have been talented, motivated, satisfied, and good team players. In many organizations, cities, or job markets, such employees are the exception rather than the rule. If good people really are rare, then the effective management of OB should prove to be a valuable resource.
The resource-based view also suggests that a resource is more valuable when it is inimitable, meaning that it cannot be imitated. Many of the firm’s resources can be imitated, if competitors have enough money. For example, a new form of technology can help a firm gain an advantage for a short time, but competing firms can switch to the same technology. Manufacturing practices can be copied, equipment and tools can be approximated, and marketing strategies can be mimicked. Good people, in contrast, are much more difficult to imitate. As shown in Figure 1-2, there are three reasons people are inimitable.
Hyundai’s emphasis on work teams and training has increased the quality of its cars, like these mod- els built in its Montgomery, Alabama, plant.
©Dave Martin/AP Images
FIGURE 1-2 What Makes a Resource Valuable?
Inimitable
Rare
History
Numerous Small
Decisions
Socially Complex Resources
Resource Value
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HISTORY People create a history—a collective pool of experience, wisdom, and knowledge that benefits the organization. History cannot be bought. Consider an example from the consumer electronics retailing industry where Micro- soft, taking a cue from Apple, launched its first retail store in Scottsdale, Arizona, in 2009.6 The company hoped that the stores would give it a chance to showcase its computer soft- ware, along with its hardware and gaming products. Micro-
soft continues to face an uphill climb in the retail space, however, because Apple had an eight-year head start after opening its first store in 2001, in McLean, Virginia.7 Microsoft’s position on the “retail learning curve” was therefore quite different, meaning that it had to grapple with many of the same issues that Apple had resolved years earlier.
NUMEROUS SMALL DECISIONS The concept of numerous small decisions captures the idea that people make many small decisions day in and day out, week in and week out. “So what?” you might say, “Why worry about small decisions?” To answer that question, ask yourself what the biggest decisions are when launching a new line of retail stores. The location of them maybe, or perhaps their look and feel? It turns out that Microsoft placed their stores near Apple’s, and mimicked much of their open, “Zen” sensibility. Said one patron, “It appears that the Microsoft Store in Mission Viejo is dressed up as the Apple Store for Halloween.”8 Big decisions can be cop- ied; they are visible to competitors and observable by industry experts. In contrast, the “behind the scenes” decisions at the Apple Store are more invisible to Microsoft, especially the decisions that involve the hiring and management of employees. Apple seems to understand the inimitable advantage that such decisions can create. One article in Workforce Management included features on the top human resources executives for 20 of the most admired companies in America.9 Inter- estingly, the entry for Apple’s executive was cryptic, noting only that the company “keeps its human resources executive shrouded in secrecy and refuses to respond to any questions about HR’s contribution to the company’s most admired status.”
SOCIALLY COMPLEX RESOURCES People also create socially complex resources, like culture, teamwork, trust, and reputation. These resources are termed “socially complex” because it’s not always clear how they came to develop, though it is clear which organizations do (and do not) pos- sess them. One advantage that Apple has over Microsoft in the retail wars is the unusual amount of interest and enthusiasm created by products like the iPhone, iPad, MacBook, and Apple Watch. Those products have an “it factor” that brings customers into the store, and Apple itself sits atop Fortune’s list of 50 most admired companies in the world.10 Competitors like Microsoft can’t just acquire “coolness” or “admiration”—they are complex resources that evolve in ways that are both murky and mysterious.
R E S E A R C H E V I D E N C E Thus, we can build a conceptual argument for why OB might affect an organization’s profitability: Good people are both rare and inimitable and, therefore, create a resource that is valuable for creating competitive advantage. Conceptual arguments are helpful, of course, but it would be even better if there were hard data to back them up. Fortunately, it turns out that there is a great deal of research evidence supporting the importance of OB for company performance. Several research studies have been conducted on the topic, each employing a somewhat different approach.
One study began by surveying executives from 968 publicly held firms with 100 or more employ- ees.11 The survey assessed so-called high performance work practices—OB policies that are widely
1.4 Why might firms that are good at OB tend to be more profitable?
Microsoft opened its first retail stores in 2009,
including this one in Mis- sion Viejo, California. The
look and feel of Microsoft’s stores are very similar to
Apple’s retail outlets.
©Mark Boster/Getty Images
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agreed to be beneficial to firm performance. The survey included 13 questions asking about a combination of hiring, information sharing, training, performance management, and incentive practices, and each question asked what proportion of the company’s workforce was involved in the practice. Table 1-2 provides some of the questions used to assess the high- performance work practices (and also shows which chapter of the textbook describes each particular practice in more detail). The study also gathered the following information for each firm: average annual rate of turnover, productivity level (defined as sales per employee), market value of the firm, and corporate profitability. The results revealed that a one-unit increase in the proportion of the workforce involved in the practices was associated with an approximately 7 percent decrease in turnover, $27,000 more in sales per employee, $18,000 more in market value, and $3,800 more in profits. Put simply, better OB practices were associated with better firm performance.
Although there is no doubting the importance of turnover, productivity, market value, and profit- ability, another study examined an outcome that’s even more fundamental: firm survival.12 The study focused on 136 nonfinancial companies that made initial public offerings (IPOs) in 1988. Firms that undergo an IPO typically have shorter histories and need an infusion of cash to grow or introduce some new technology. Rather than conducting a survey, the authors of this study examined the pro- spectus filed by each firm (the Securities and Exchange Commission requires that prospectuses con- tain honest information, and firms can be liable for any inaccuracies that might mislead investors). The authors coded each prospectus for information that might suggest OB issues were valued. Examples of valuing OB issues included describing employees as a source of competitive advantage in strategy and mission statements, emphasizing training and continuing education, having a human resources management executive, and emphasizing full-time rather than temporary or contract employees. By 1993, 81 of the 136 firms included in the study had survived (60 percent). The key question is whether the value placed on OB predicted which did (and did not) survive. The results revealed that firms that valued OB had a 19 percent higher survival rate than firms that did not value OB.
Source: Adapted from M.A. Huselid, “The Impact of Human Resource Management Practices on Turnover, Productivity, and Corporate Financial Performance.” Academy of Management Journal, Vol. 38, pp. 635–72. Academy of Management.
TABLE 1-2 Survey Questions Designed to Assess High- Performance Work Practices
SURVEY QUESTION ABOUT OB PRACTICE COVERED IN CHAPTER
What is the proportion of the workforce whose jobs have been subjected to a formal job analysis?
2
What is the proportion of the workforce who are adminis- tered attitude surveys on a regular basis?
4
What is the proportion of the workforce who have access to company incentive plans, profit-sharing plans, and/or gain- sharing plans?
6
What is the average number of hours of training received by a typical employee over the last 12 months?
8, 10
What is the proportion of the workforce who have access to a formal grievance procedure and/or complaint resolution system?
7
What proportion of the workforce are administered an employment test prior to hiring?
9, 10
What is the proportion of the workforce whose performance appraisals are used to determine compensation?
6
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A third study focused on Fortune’s “100 Best Companies to Work For” list, which has appeared annually since 1998.13 Table 1-3 provides some highlights from the 2017 version of the list. If the 100 firms on the list really do have good OB practices, and if good OB practices really do influ- ence firm profitability, then it follows that the 100 firms should be more profitable. To explore this premise, the study went back to an earlier version of the list and found a “matching firm” for those companies that were included.14 The matching firm consisted of the most similar company with respect to industry and size in that particular year, with the added requirement that the company had not appeared on the “100 Best” list. This process essentially created two groups of companies that differ only in terms of their inclusion in the “100 Best.” The study then compared the profitability of those two groups of companies. The results revealed that the “100 Best” firms were more profitable than their peers. Indeed, the cumulative investment return for a portfolio based on the “100 Best” companies would have doubled the return for the broader market.
S O W H AT ’ S S O H A R D? Clearly this research evidence seems to support the conceptual argument that good people con- stitute a valuable resource for companies. Good OB does seem to matter in terms of company profitability. You may wonder then, “What’s so hard?” Why doesn’t every company prioritize the effective management of OB, devoting as much attention to it as they do accounting, finance, marketing, technology, physical assets, and so on? Some companies do a bad job when it comes to managing their people. Why is that?
One reason is that there is no “magic bullet” OB practice—one thing that, in and of itself, can increase profitability. Instead, the effective management of OB requires a belief that several dif- ferent practices are important, along with a long-term commitment to improving those practices. This premise can be summarized with what might be called the Rule of One-Eighth:
One must bear in mind that one-half of organizations won’t believe the connection between how they manage their people and the profits they earn. One-half of those who do see the connection will do what many organizations have done—try to make a single change to solve their problems, not realizing that the effective management of people requires a more compre- hensive and systematic approach. Of the firms that make comprehensive changes, probably
TABLE 1-3 The “100 Best Companies to Work For” in 2017
1. Google 23. PwC 63. Delta
2. Wegmans 26. Hilton 64. Deloitte
3. Boston Consulting 28. REI 68. QuikTrip
4. Baird 29. EY 69. American Express
5. Edward Jones 32. Hyatt 72. IKEA
6. Genentech 33. Marriott 79. Four Seasons
10. Quicken Loans 48. Cheesecake Factory 84. Mayo Clinic
12. KPMG 49. Container Store 88. Accenture
13. Intuit 50. Mars 91. Aflac
15. SAS 54. Nationwide 93. AT&T
17. Capital One 58. Whole Foods 94. Nordstrom
21. Publix 62. Goldman Sachs 99. FedEx
Source: M.C. Bush and S. Lewis-Kulin., “The 100 Best Companies to Work For.” Fortune, March 15, 2017.
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only about one-half will persist with their practices long enough to actually derive economic benefits. Because one-half times one-half times one-half equals one-eighth, at best 12 percent of organizations will actually do what is required to build profits by putting people first.15
The integrative model of OB used to structure this book was designed with this Rule of One- Eighth in mind. Figure 1-1 suggests that high job performance depends not just on employee motivation but also on fostering high levels of satisfaction, effectively managing stress, creating a trusting climate, and committing to employee learning. Failing to do any one of those things could hinder the effectiveness of the other concepts in the model. Of course, that systemic nature reveals another reality of organizational behavior: It’s often difficult to “fix” companies that strug- gle with OB issues. Such companies often struggle in a number of different areas and on a number of different levels. For more discussion about why firms struggle to manage their people, see our OB at the Bookstore feature, which appears in each chapter to showcase a well-known business book that discusses OB concepts.
OB AT THE BOOKSTORE This feature spotlights bestselling business books that complement the content of each chapter. Drawing a bridge from our chapters to these books lets you see how the titles at the bookstore complement the concepts in our integrative model of OB.
HOW TO HAVE A GOOD DAY by Caroline Webb (New York: Brown Business, 2016).
We’re living in a golden age of behavioral science, where every pass- ing week seems to deliver fresh insights into the way we think, feel, and act. Neuroscientists, psychologists, and economists are busy unraveling the important mysteries of our time, questions like: “How can I conquer my inbox?” “Why do perfectly reasonable people get their wires crossed?” “What would it take for me to stop procrastinat- ing right now (or later today, or tomorrow)?” Scientific research has ever more to say in answer to these sorts of pressing questions.
With those words, Webb highlights the potential of scientific research for several different corners of our integrative model of OB. An economist by trade, Webb also spent time doing in-depth reading of research in psychology and neuroscience. The book then applies a “neuro-psycho-economic” perspective to a number of dif- ferent questions—questions relevant to any employee or manager.
For example, Webb describes research on priorities and produc- tivity that echoes some of what we’ll cover in our Motivation and Job Performance chapters. Studies on relationships and influence complement the content in our Teams and Leadership chapters. Her coverage of thinking research reflects aspects of our Learning and Decision Making chapter. Finally, her focus on resilience and energy supplements our discussions of Job Satisfac- tion and Stress. In all of those sections, Webb pauses to explain scientific principles while high- lighting specific studies and experiments.
What happens if we successfully bring to bear all of this scientific knowledge in our working lives? Well, according to Webb, such efforts will result in more good days at work—and fewer bad days. “We have more room to maneuver than we realize,” she argues. “The secret lies in learning some of the science explaining how the brain works, and why people behave the way they do . . . Grasp these essentials, and it becomes far clearer how to bring the best out of ourselves and oth- ers. And that puts us in a much stronger position to create the kind of day we really want to have.”
©Roberts Publishing Services
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H O W D O W E “ K N O W ” W H AT W E K N O W A B O U T O R G A N I Z AT I O N A L B E H AV I O R ?
Now that we’ve described what OB is and why it’s an important topic of study, we now turn to how we “know” what we know about the topic. In other words, where does the knowledge in this textbook come from? To answer this question, we must first explore how people “know” about anything. Philosophers have argued that there are several different ways of knowing things:16
• Method of experience: People hold firmly to some belief because it is consistent with their own experience and observations.
• Method of intuition: People hold firmly to some belief because it “just stands to reason”—it seems obvious or self-evident.
• Method of authority: People hold firmly to some belief because some respected official, agency, or source has said it is so.
• Method of science: People accept some belief because scientific studies have tended to replicate that result using a series of samples, settings, and methods.
Consider the following prediction: Providing social recognition, in the form of public displays of praise and appreciation for good behaviors, will increase the performance and commitment of work units. Perhaps you feel that you “know” this claim to be true because you yourself have always responded well to praise and recognition. Or perhaps you feel that you “know” it to be true because it seems like common sense—who wouldn’t work harder after a few public pats on the back? Maybe you feel that you “know” it to be true because a respected boss from your past always extolled the virtue of public praise and recognition.
However, the methods of experience, intuition, and authority also might have led you to the opposite belief—that providing social recognition has no impact on the performance and commit- ment of work units. It may be that public praise has always made you uncomfortable or embar- rassed, to the point that you’ve tried to hide especially effective behaviors to avoid being singled out by your boss. Or it may seem logical that social recognition will be viewed as “cheap talk,” with employees longing for financial incentives rather than verbal compliments. Or perhaps the best boss you ever worked for never offered a single piece of social recognition in her life, yet her employees always worked their hardest on her behalf. From a scientist’s point of view, it doesn’t really matter what a person’s experience, intuition, or authority suggests; the prediction must be tested with data. In other words, scientists don’t simply assume that their beliefs are accurate; they acknowledge that their beliefs must be tested scientifically.
Scientific studies are based on the scientific method, originated by Sir Francis Bacon in the 1600s and adapted in Figure 1-3.17 The scientific method begins with theory, defined as a collec- tion of assertions—both verbal and symbolic—that specify how and why variables are related, as well as the conditions in which they should (and should not) be related.18 More simply, a theory tells a story and supplies the familiar who, what, where, when, and why elements found in any newspaper or magazine article.19 Theories are often summarized with theory diagrams, the “boxes and arrows” that graphically depict relationships between variables. Our integrative model of OB in Figure 1-1 represents one such diagram, and there will be many more to come in the remaining chapters of this textbook.
A scientist could build a theory explaining why social recognition might influence the per- formance and commitment of work units. From what sources would that theory be built? Well, because social scientists “are what they study,” one source of theory building is introspection. However, theories may also be built from interviews with employees or from observations where scientists take notes, keep diaries, and pore over company documents to find all the elements of a theory story.20 Alternatively, theories may be built from research reviews, which examine findings of previous studies to look for general patterns or themes.21
Although many theories are interesting, logical, or thought provoking, many also wind up being completely wrong. After all, scientific theories once predicted that the earth was flat and the sun revolved around it. Closer to home, OB theories once argued that money was not an effective motivator
1.5 What is the role of theory in the scientific method?
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and that the best way to structure jobs was to make them as simple and mundane as possible.22 Theo- ries must therefore be tested to verify that their predictions are accurate. As shown in Figure 1-3, the scientific method requires that theories be used to inspire hypotheses. Hypotheses are written predic- tions that specify relationships between variables. For example, a theory of social recognition could be used to inspire this hypothesis: “Social recognition behaviors on the part of managers will be positively related to the job performance and organizational commitment of their units.” This hypothesis states, in black and white, the expected relationship between social recognition and unit performance.
Assume a family member owned a chain of 21 fast-food restaurants and allowed you to test this hypothesis using the restaurants. Specifically, you decided to train the managers in a subset of the restaurants about how to use social recognition as a tool to reinforce behaviors. Meanwhile, you left another subset of restaurants unchanged to represent a control group. You then tracked the total number of social recognition behaviors exhibited by managers over the next nine months by observing the managers at specific time intervals. You measured job performance by tracking drive-through times for the next nine months and used those times to reflect the minutes it takes for a customer to approach the restaurant, order food, pay, and leave. You also measured the com- mitment of the work unit by tracking employee retention rates over the next nine months.
So how can you tell whether your hypothesis was supported? You could analyze the data by examining the correlation between social recognition behaviors and drive-through times, as well as the correlation between social recognition behaviors and employee turnover. A correlation, abbre- viated r, describes the statistical relationship between two variables. Correlations can be positive or negative and range from 0 (no statistical relationship) to 1 (a perfect statistical relationship). Picture a spreadsheet with two columns of numbers. One column contains the total numbers of social recognition behaviors for all 21 restaurants; the other contains the average drive-through times for those same 21 restaurants. The best way to get a feel for the correlation is to look at a scatterplot—a graph made from those two columns of numbers. Figure 1-4 presents three scatter- plots, each depicting different-sized correlations. The strength of the correlation can be inferred from the “compactness” of its scatterplot. Panel (a) shows a perfect 1.0 correlation; knowing the score for social recognition allows you to predict the score for drive-through times perfectly. Panel (b) shows a correlation of .50, so the trend in the data is less obvious than in Panel (a) but still easy to see with the naked eye. Finally, Panel (c) shows a correlation of .00—no statistical rela- tionship. Understanding the correlation is important because OB questions are not “yes or no” in nature. That is, the question is not “Does social recognition lead to higher job performance?” but rather “How often does social recognition lead to higher job performance?” The correlation provides a number that expresses an answer to the “how often” question.
1.6 How are correlations interpreted?
FIGURE 1-3 The Scientific Method
VERIFICATION HYPOTHESES
THEORY
DATA
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So what is the correlation between social recognition and job performance (and between social recognition and organizational commitment)? It turns out that a study very similar to the one described was actually conducted, using a sample of 21 Burger King restaurants with 525 total employees.23 The correlation between social recognition and job performance was .28. The restau- rants that received training in social recognition averaged 44 seconds of drive-through time nine months later versus 62 seconds for the control group locations. The correlation between social recognition and retention rates was .20. The restaurants that received training in social recogni- tion had a 16 percent better retention rate than the control group locations nine months later. The study also instituted a financial “pay-for-performance” system in a subset of the locations and found that the social recognition effects were just as strong as the financial effects.
Of course, you might wonder whether correlations of .28 or .20 are impressive or unimpres- sive. To understand those numbers, let’s consider some context for them. Table 1-4 provides some notable correlations from other areas of science. If the correlation between height and weight is only .44, then a correlation of .28 between social recognition and job performance doesn’t sound too bad! In fact, a correlation of .50 is considered “strong” in organizational behavior research, given the sheer number of things that can affect how employees feel and act.24 A .30 correlation is considered “moderate,” and many studies discussed in this book will have results in this range. Finally, a .10 correlation is considered “weak” in organizational behavior research. It should be noted, however, that even “weak” correlations can be important if they predict costly behaviors such as theft or ethical violations. The .08 correlation between smoking and lung cancer within 25 years is a good example of how important small correlations can be.
Does this one study settle the debate about the value of social recognition for job perfor- mance and organizational commitment? Not really, for a variety of reasons. First, it included only
FIGURE 1-4 Three Different Correlation Sizes
Social Recognition Behaviors
Social Recognition Behaviors
Social Recognition Behaviors
(a) r = 1.00
(b) r = .50
(c) r = .00
Jo b
P e
rf o
rm a
n ce
Jo b
P e
rf o
rm a
n ce
Jo b
P e
rf o
rm a
n ce
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21 restaurants with 525 employees—maybe the results would have turned out differently if the study had included more locations. Second, it focused only on restaurant employees—maybe there’s something unique about such employees that makes them particularly responsive to social recognition. Third, it may be that the trained locations differed from the control locations on something other than social recognition, and it was that “something” that was responsible for the performance differences. You may have heard the phrase, “correlation does not imply causa- tion.” It turns out that making causal inferences—establishing that one variable really does cause another—requires establishing three things.25 First, that the two variables are correlated. Second, that the presumed cause precedes the presumed effect in time. Third, that no alternative explana- tion exists for the correlation. The third criterion is often fulfilled in experiments, where research- ers have more control over the setting in which the study occurs.
The important point is that little can be learned from a single study. The best way to test a theory is to conduct many studies, each of which is as different as possible from the ones that preceded it.26 So if you really wanted to study the effects of social recognition, you would conduct several
TABLE 1-4 Some Notable Correlations
CORRELATION BETWEEN . . . r SAMPLE SIZE
Height and weight .44 16,948
Ibuprofen and pain reduction .14 8,488
Antihistamines and reduced sneezing .11 1,023
Smoking and lung cancer within 25 years .08 3,956
Coronary bypass surgery and 5-year survival .08 2,649
Source: Robert Hogan, “In Defense of Personality Measurement: New Wine for Old Whiners.” Human Performance, Vol. 18, 2005, pp. 331–41.
A study of Burger King restaurants revealed a correlation between social recognition—praise and appreciation by managers—and employ- ees’ performance and commitment. Such studies contribute to the growing body of organizational behavior knowledge.
©Wilfredo Lee/AP Images
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studies using different kinds of samples, different kinds of measures, and both experimental and nonexperimental methods. After completing all of those studies, you could look back on the results and create some sort of average correlation across all of the studies. This process is what a technique called meta-analysis does. It takes all of the correlations found in studies of a particular relationship and calculates a weighted average (such that correlations based on studies with large samples are weighted more than correlations based on studies with small samples). It turns out that a meta- analysis has been conducted on the effects of social recognition and job performance. That analysis revealed an average correlation of .21 across studies conducted in 96 different organizations in the service industry.27 That meta-analysis offers more compelling support for the potential benefits of social recognition than the methods of experience, intuition, or authority could have provided.
Indeed, meta-analyses can form the foundation for evidence-based management—a perspective that argues that scientific findings should form the foundation for management education, much as they do for medical education.28 Proponents of evidence-based management argue that human resources should be transformed into a sort of R&D department for managing people.29 Notes one advocate, “In R&D, you go into the laboratory, you experiment and you keep up with the research that others do. . . . Can you imagine walking into the R&D lab at a pharmaceutical company, asking the chief chemist about an important new study and having him respond that they don’t keep up with the literature on chemistry?” Verizon Business, the Basking Ridge, New Jersey–based unit of Verizon Communica- tions, is one example of a company that is moving toward evidence-based management. The company notes that the dollars spent on human resources issues demand more than an intuition-based justifica- tion for new plans. More informed decisions come from running systematic experiments in smaller units of an organization, making greater use of internal data, hiring PhDs with relevant expertise, and pursuing collaborations with academics. Such practices form the foundation for the use of analytics as a tool for management, with analytics defined as the use of data (rather than just opinion) to guide decision making.30 For a look at how analytics is used in the world of sports, see our OB on Screen feature, which appears in each chapter and uses well-known movies to demonstrate OB concepts.
S U M M A R Y: M O V I N G F O R WA R D I N T H I S B O O K
The chapters that follow will begin working through the integrative model of OB in Figure 1-1, beginning with the individual outcomes and continuing with the individual, group, and organiza- tional mechanisms that lead to those outcomes. Each chapter begins by spotlighting a company that historically has done a good job of managing a given topic or is currently struggling with a topic. Theories relevant to that topic will be highlighted and discussed. The concepts in those theories will be demonstrated in the OB on Screen features to show how OB phenomena have “come to life” in film. The OB at the Bookstore feature will then point you to bestsellers that dis- cuss similar concepts. In addition, the OB Internationally feature will describe how those concepts operate differently in different cultures and nations.
Each chapter ends with three sections. The first section provides a summarizing theory dia- gram that explains why some employees exhibit higher levels of a given concept than others. For example, the summarizing theory diagram for Chapter 4 will explain why some employees are more satisfied with their jobs than others. As we noted in the opening of this chapter, knowledge about why is critical to any employee who is trying to make sense of his or her working life or any manager who is trying to make his or her unit more effective. How often have you spent time try- ing to explain your own attitudes and behaviors to yourself? If you consider yourself to be an intro- spective person, you’ve probably thought about such questions quite a bit. Our OB Assessments feature will help you find out how reflective you really are. This feature also appears in each chapter of the textbook and allows you to gain valuable knowledge about your own personality, abilities, job attitudes, and leadership styles.
The next concluding section will describe the results of meta-analyses that summarize the rela- tionships between that chapter’s topic and both job performance and organizational commitment. Over time, you’ll gain a feel for which of the topics in Figure 1-1 have strong, moderate, or weak relationships with these outcomes. This knowledge will help you recognize how everything in OB fits together and what the most valuable tools are for improving performance and commitment
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OB ON SCREEN This feature is designed to illustrate OB concepts in action on the silver screen. Once you’ve learned about OB topics, you’ll see them playing out all around you, especially in movies.
MONEYBALL
You don’t put a team together with a computer, Billy. . . . Baseball isn’t just numbers; it’s not sci- ence. If it was, then anybody could do what we’re doing. But they can’t because they don’t know what we know. They don’t have our experience and they don’t have our intuition.
With those words, Grady Fuson (Ken Medlock) tries to show Billy Beane (Brad Pitt) the error of his ways in Moneyball (Dir. Bennett Miller, Columbia Pictures, 2011). Billy is the general man- ager of the Oakland Athletics (A’s). After losing to the New York Yankees in the playoffs, Billy’s been forced to trim a payroll that is already a third of what the Yankees pay. To the angst of his head scout Grady, Billy turns to Pete Brand, aka “Google boy,” a recent hire with a degree in economics from Yale. Pete is well versed in “sabermetrics”—the scientific search for objective baseball knowl- edge begun by Bill James, with a nod to the Society for American Baseball Research (SABR).
©Columbia Pictures/Photofest
The film, based on the Michael Lewis bestseller,31 shows how science can complement experience and intuition. For example, Pete’s advanced analytics showed that “on-base percentage”—a statistic dependent not just on hits but also on walks—was a more valid indicator of a player’s value than the home runs emphasized by traditional scouts. Ironically, the success of Moneyball caused a number of baseball teams to hire “sabermetricians,” erasing some of the advantages that Billy’s approach had given Oakland.32 Indeed, the use of advanced analytics has taken hold in other professional sports, most notably the National Basketball Association.33 Hopefully evidence-based management will allow organizational managers to do what sports managers are doing—test their theories of success with data.
in the workplace. As you will discover, some of the topics in OB have a greater impact on how well employees perform their jobs, whereas others have a greater impact on how long employees remain with their organizations. Finally, the third concluding section will describe how the con- tent of that chapter can be applied, at a specific level, in an actual organization. For example, the motivation chapter concludes with a section describing how compensation practices can be used to maximize employee effort. If you’re currently working, we hope that these concluding sections will help you see how the concepts you’re reading about can be used to improve your own organi- zations. Even if you’re not working, these application sections will give you a glimpse into how you will experience OB concepts once you begin your working life.
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OB ASSESSMENTS
SCORING AND INTERPRETATION If your scores sum up to 26 or above, you do a lot of introspection and are highly self-aware. You may find that many of the theories discussed in this textbook will help you better understand your attitudes and feelings about working life.
Source: Adapted from A. Fenigstein, M.F. Scheier, and A.H. Buss, “Public and Private Self-Consciousness: Assessment and Theory,” Journal of Consulting and Clinical Psychology, Vol. 43, August 1975, pp. 522–27. American Psychological Association.
This feature is designed to illustrate how OB concepts actually get measured in practice. In many cases, these OB assessments will provide you with potentially valuable insights into your own attitudes, skills, and personality. The OB assessments that you’ll see in each chapter consist of multiple survey items. Two concepts are critical when evaluating how good the OB assessments are: reliability and validity. Reliability is defined as the degree to which the survey items are free from random error. If survey items are reliable, then similar items will yield similar answers. Valid- ity is defined as the degree to which the survey items seem to assess what they are meant to assess. If survey items are valid, then experts on the subject will agree that the items seem appropriate.
INTROSPECTION How introspective are you? This assessment is designed to measure introspection—sometimes termed “private self-consciousness”—which is the tendency to direct attention inward to better understand your attitudes and behaviors. Answer each question using the response scale provided. Then subtract your answers to the boldfaced questions from 4, with the difference being your new answers for those questions. For example, if your original answer for question 5 was “3,” your new answer is 1 (4 – 3). Then sum your answers for the 10 questions. (Instructors: Assessments on scientific interests and methods of knowing can be found in the PowerPoints in the Connect Library’s Instructor Resources and in the Connect assignments for this chapter.)
0 EXTREMELY
UNCHARACTERISTIC OF ME
1 SOMEWHAT
UNCHARACTERISTIC OF ME
2 NEUTRAL
3 SOMEWHAT
CHARACTERISTIC OF ME
4 EXTREMELY
CHARACTERISTIC OF ME
1. I’m always trying to figure myself out.
2. Generally, I’m not very aware of myself.
3. I reflect about myself a lot.
4. I’m often the subject of my own daydreams.
5. I never scrutinize myself.
6. I’m generally attentive to my inner feelings.
7. I’m constantly examining my motives.
8. I sometimes have the feeling that I’m off somewhere watching myself.
9. I’m alert to changes in my mood.
10. I’m aware of the way my mind works when I work through a problem.
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1.1 Organizational behavior is a field of study devoted to understanding and explaining the attitudes and behaviors of individuals and groups in organizations. More simply, it focuses on why individuals and groups in organizations act the way they do.
1.2 The two primary outcomes in organizational behavior are job performance and organiza- tional commitment.
1.3 A number of factors affect performance and commitment, including individual mechanisms (job satisfaction; stress; motivation; trust, justice, and ethics; learning and decision making), individual characteristics (personality and cultural values; ability), group mechanisms (team characteristics and diversity; team processes and communication; leader power and negotia- tion; leader styles and behaviors), and organizational mechanisms (organizational structure; organizational culture).
1.4 The effective management of organizational behavior can help a company become more profitable because good people are a valuable resource. Not only are good people rare, but they are also hard to imitate. They create a history that cannot be bought or copied, they make numerous small decisions that cannot be observed by competitors, and they create socially complex resources such as culture, teamwork, trust, and reputation.
1.5 A theory is a collection of assertions, both verbal and symbolic, that specifies how and why variables are related, as well as the conditions in which they should (and should not) be related. Theories about organizational behavior are built from a combination of interviews, observation, research reviews, and reflection. Theories form the beginning point for the scientific method and inspire hypotheses that can be tested with data.
1.6 A correlation is a statistic that expresses the strength of a relationship between two variables (ranging from 0 to ± 1). In OB research, a .50 correlation is considered “strong,” a .30 cor- relation is considered “moderate,” and a .10 correlation is considered “weak.”
TA K E AWAY S
K E Y T E R M S
• Organizational behavior (OB) p. 6 • Human resource management p. 7 • Strategic management p. 7 • Resource-based view p. 10 • Inimitable p. 11 • History p. 12 • Numerous small decisions p. 12 • Socially complex resources p. 12 • Rule of One-Eighth p. 14 • Method of experience p. 16
• Method of intuition p. 16 • Method of authority p. 16 • Method of science p. 16 • Theory p. 16 • Hypotheses p. 17 • Correlation p. 17 • Causal inference p. 19 • Meta-analysis p. 20 • Evidence-based management p. 20 • Analytics p. 20
1.1 Assuming you possessed the right technical skills for the job, would a position at IKEA be appealing to you? What would be the most important positives associated with the position, in your view? What would be the most important negatives?
D I S C U S S I O N Q U E S T I O N S
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The values in the “Little IKEA Dictionary” do more than shape the experience of working at IKEA. They also shape the actions the company takes as it interfaces with the world at large. For example, IKEA is a leader in helping to support refugees—people forced to leave their countries because of wars, disasters, or persecutions. The company designed and manufactured the Better Shelter—a flat-packed shelter that’s solar-powered and can fit a family of five. More than 16,000 shelters have been distributed around the world since 2015. The shelter even won the the presti- gious Beazley Design of the Year Award. IKEA also plans to sell a line of rugs made by Syrian refugees. The initiative will provide jobs for 200 refugees and the rugs will be sold in several Middle Eastern countries. Jesper Broden, an IKEA managing director, notes, “The situation in Syria is a major tragedy of our time. . . . We decided to look into how IKEA can contribute.”
As another example, the company is doing what it can to promote environmental s ustainability— a key challenge given the number of stores it operates. IKEA has installed solar panels at 90 percent of its stores. Moreover, a recent report placed it among the top U.S. companies for producing solar power (alongside Target, Walmart, Apple, Costco, and Kohl’s). IKEA also unveiled “The Farm,” a hydroponic garden that allows it to grow the food served in its in-store cafes—famous for their Swed- ish meatballs and cinnamon rolls. Finally, the company launched a “Save the Furniture” campaign in Belgium, where customers can sell their old furniture to IKEA, with the store then selling the furniture to its customers. The program, which will be piloted in the United States, is described as “amnesty for pre-loved furniture” and is not limited to IKEA’s own products.
Of course, those sorts of expressions of IKEA’s values may not be as salient to employees as management philosophies, promotion rates, working hours, and compensation levels. Still, such actions may instill a sense of pride among the rank-and-file, encouraging them to see more mean- ing and purpose in their work. Such actions may also make employees think twice before accept- ing jobs at competitors who are less “society minded.” Of course, customer awareness of IKEA’s policies and initiatives could breed product loyalty—or even turn customers into applicants for job openings in the company.
1.1 To what extent does a company’s culture wind up reflecting the personality of its founder? To what extent does it reflect the values of the country it was founded in? Which seems to be a stronger force in the case of IKEA?
1.2 IKEA operates in a number of countries around the world. The governments and people in those countries may have different attitudes about working hours, diversity efforts, pay levels, and political and environmental activism. Should companies alter their policies and activities in a way that is sensitive to such differences?
C A S E : I K E A
1.2 Think again about the worst coworker you’ve ever had—the one who did some of the things listed in Table 1-1. Think about what that coworker’s boss did (or didn’t do) to try to improve his or her behavior. What did the boss do well or poorly? What would you have done differently, and which organizational behavior topics would have been most relevant?
1.3 Which of the individual mechanisms in Figure 1-1 (job satisfaction; stress; motivation; trust, justice, and ethics; learning and decision making) seems to drive your performance and commitment the most? Do you think you’re unique in that regard, or do you think most people would answer that way?
1.4 Create a list of the most successful companies that you can think of. What do these compa- nies have that others don’t? Are the things that those companies possess rare and inimitable (see Figure 1-2)? What makes those things difficult to copy?
1.5 Think of something that you “know” to be true based on the method of experience, the method of intuition, or the method of authority. Could you test your knowledge using the method of science? How would you do it?
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1.3 Assume you were an employee at an organization like IKEA, and Fortune surveyed you for its 100 Best Companies to Work For list. To what extent would your attitudes be shaped not just by internal work policies, but also by how the company engages with society?
Sources: S. Begley, “IKEA Will Sell Rugs and Textiles Made by Syrian Refugees,” Fortune, January 31, 2017; A. Byland, “How Ingvar Kamprad Made His Billions,” The Motley Fool, April 19, 2014; K. Fehrenbacher, “These Are the U.S. Com- panies with the Most Solar Power.” Fortune, October 19, 2016; IKEA 2016 by Numbers, August, 2016, http://franchisor .ikea.com/wp-content/uploads/2016/12/IKEA-Highlights-2016-Facts-and-Figures.pdf; M. Gladwell, David and Goliath: Underdogs, Misfits, and the Art of Battling Giants; (New York: Little, Brown, and Company, 2013); G. Houston, “How IKEA Plans to Help Restaurants Build Their Own Indoor Farms,” Fortune, June 21, 2016; B. Kowitt, “The Coolest Things IKEA, Coca-Cola, and Walmart Are Doing to Cut Waste,” Fortune, May 16, 2016; B. Kowitt, “At IKEA: No Ranks, No Rancor,” Fortune, March 15, 2016; R. Levering, “The 100 Best Companies to Work For,” Fortune, March 15, 2016; and M. Rhodan, “IKEA Refugee Shelter Wins Design of the Year Award,” Fortune, January 30, 2017.
E X E R C I S E : I S O B C O M M O N S E N S E ?
The purpose of this exercise is to take some of the topics covered in this textbook and examine whether improving them is “just common sense.” This exercise uses groups, so your instructor will either assign you to a group or ask you to create your own. The exercise has the following steps:
1.1 Consider the theory diagram shown below. It explains why two “independent variables” (the quality of a movie’s script and the fame of its stars) affect a “dependent variable” (how much the movie makes at the box office).
Buzz Generated
Box O�ce
Receipts
Quality of Script
Fame of Stars
Favorability of Reviews
1.2 Now build your own theory diagram about organizational behavior. In your groups, choose one of the following four topics to use as your dependent variable:
• Job satisfaction: The pleasurable emotions felt when performing job tasks. • Strain: The headaches, fatigue, or burnout resulting from workplace stress. • Motivation: The intensity and persistence of job-related effort. • Trust in supervisor: The willingness to allow a supervisor to have significant influence
over key job issues.
Using a laptop, whiteboard, or chalkboard, build a theory diagram that summarizes the fac- tors that affect your chosen dependent variable. To be as comprehensive as possible, try to include at least four independent variables. Keep your books closed! You should build your diagrams using only your own experience and intuition.
1.3 Each group should present its theory diagram to the class. Do the predicted relationships make sense? Should anything be dropped? Should anything be added?
1.4 Now compare the theory diagram you created with the diagrams in the textbook (Figure 4-7 for Job Satisfaction, Figure 5-3 for Strain, Figure 6-7 for Motivation, and Figure 7-7 for Trust in Supervisor). How does your diagram compare to the textbook’s diagrams? (Search the bold- faced key terms for any jargon that you don’t understand.) Did you leave out some important independent variables or suggest some variables that have not been supported by the academic research summarized in the chapters? If so, it shows that OB is more than just common sense.
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1.1 Kiley, D. “J.D. Power: BMW and Hyundai Are Tops in Car Tech.” Forbes, October 11, 2016.
1.2 Source: Ihlwan, M., and C. Dawson. “Building a ‘Camry Fighter’: Can Hyundai Transform Itself into One of the World’s Top Auto Mak- ers?” BusinessWeek, Sep- tember 6, 2004, http:// www. businessweek .com/magazine/ content/04_36/ b3898072.htm.
1.3 Levin, D. “New Hyun- dai Sonatas Rolling Out of Super-Busy Alabama Plant.” Fortune, June 26, 2014.
1.4 Taylor, A. III. “Hyundai Smokes the Competi- tion.” Fortune, January 18, 2010, pp. 62–71; and Ihlwan, M.; L. Armstrong; and M. Eldam. “Kissing Clunkers Goodbye.” BusinessWeek, May 17, 2004, http://www .businessweek.com/ magazine/content/ 04_20/b3883054.htm.
1.5 Barney, J.B. “Looking Inside for Competitive Advantage.” In Stra- tegic Human Resource Management, ed. R.S. Schuler and S.E. Jackson. Malden, MA: Blackwell, 1999, pp. 128–41.
1.6 McIntyre, D.A. “Microsoft Launches Retail Stores to Save Windows.” Time, February 13, 2009,
http://www.time.com/ time/business/article/ 0,8599,1879368,00 .html.
1.7 Edwards, C. “Com- mentary: Sorry, Steve: Here’s Why Apple Stores Won’t Work.” BusinessWeek, May 21, 2001, http://www . businessweek.com/ magazine/content/ 01_21/b3733059.htm.
1.8 Source: Frommer, D. “Microsoft’s New Retail Stores Look Just Like Apple Stores.” Business Insider, November 1, 2009.
1.9 Hansen, F. “Admirable Qualities.” Workforce Management, June 23, 2008, pp. 25–32.
1.10 DeCarlo, S. “The World’s Most Admired Companies.” Fortune, March 1, 2017.
1.11 Huselid, M.A. “The Impact of Human Resource Management Practice on Turnover, Productivity, and Corporate Financial Performance.” Academy of Management Journal 38 (1995), pp. 635–72.
1.12 Welbourne, T.M., and A.O. Andrews. “Predicting the Perfor- mance of Initial Public Offerings: Should Human Resource Management Be in the Equation?” Academy of Management Journal 39 (1996), pp. 891–919.
1.13 Bush, M.C., and S. Lewis-Kulin. “100 Best
Companies to Work For” Fortune, March 15, 2017.
1.14 Fulmer, I.S.; B. Gerhart; and K.S. Scott. “Are the 100 Best Better? An Empirical Investigation of the Relationship Between Being a ‘Great Place to Work’ and Firm Performance.” Personnel Psychology 56 (2003), pp. 965–93.
1.15 Source: Pfeffer, J., and J.F. Veiga. “Putting People First for Organi- zational Success.” Acad- emy of Management Executive 13 (1999), pp. 37–48.
1.16 Kerlinger, F.N., and H.B. Lee. Foundations of Behavioral Research. Fort Worth, TX: Har- court, 2000.
1.17 Bacon, F.; M. Silver- thorne; and L. Jardine. The New Organon. Cambridge: Cambridge University Press, 2000.
1.18 Campbell, J.P. “The Role of Theory in Industrial and Organi- zational Psychology.” In Handbook of Industrial and Organizational Psy- chology, Vol. 1, edited by, M.D. Dunnette and L.M. Hough. Palo Alto, CA: Consulting Psy- chologists Press, 1990, pp. 39–74.
1.19 Whetten, D.A. “What Constitutes a Theo- retical Contribution?” Academy of Manage- ment Review 14 (1989), pp. 490–95.
E N D N OT E S
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1.20 Locke, K. “The Grounded Theory Approach to Quali- tative Research.” In Measuring and Analyzing Behavior in Organizations, ed. F. Drasgow and N. Schmitt. San Fran- cisco, CA: Jossey-Bass, 2002, pp. 17–43.
1.21 Locke, E.A., and G.P. Latham. “What Should We Do About Motivation Theory? Six Recommendations for the Twenty-First Century.” Academy of Management Review 29 (2004), pp. 388–403.
1.22 Herzberg, F.; B. Maus- ner; and B.B. Snyder- man. The Motivation to Work. New York: John Wiley, 1959; Taylor, F. W. The Principles of Scientific Management. New York: Harper & Row, 1911.
1.23 Peterson, S.J., and F. Luthans. “The Impact of Financial and Nonfinancial Incen- tives on Business-Unit Outcomes over Time.” Journal of Applied
Psychology 91 (2006), pp. 156–65.
1.24 Cohen, J.; P. Cohen; S.G. West; and L.S. Aiken. Applied Multiple Regression/Correlation Analysis for the Behav- ioral Sciences. Mahwah, NJ: Erlbaum, 2003.
1.25 Shadish, W.R.; T.D. Cook; and D.T. Camp- bell. Experimental and Quasi-Experimental Designs for General- ized Causal Inference. Boston, MA: Houghton Mifflin, 2002.
1.26 Ibid.
1.27 Stajkovic, A.D., and F. Luthans. “A Meta- Analysis of the Effects of Organizational Behavior Modification on Task Performance, 1975–1995.” Academy of Management Journal 40 (1997), pp. 1122–49.
1.28 Rousseau, D.M.; J. Manning; and D. Denyer. “Evidence in Management and Organizational Science: Assembling the Field’s Full Eight of Scientific Knowledge Through
Syntheses.” Academy of Management Annals 2 (2008), pp. 475–515; and Briner, R.B.; D. Denyer; and D.M. Rous- seau. “Evidence-Based Management: Concept Cleanup Time?” Acad- emy of Management Perspectives 23 (2009), pp. 19–32.
1.29 Hansen, F. “Merit-Pay Payoff?” Workforce Management, Novem- ber 3, 2008, pp. 33–39.
1.30 Davenport, T.H. “Analytics 3.0.” Har- vard Business Review, December, 2013.
1.31 Lewis, M. Moneyball. New York: Norton, 2003.
1.32 Fox, J. “The Moneyball Myth.” Bloomberg Businessweek, October 20, 2011, pp. 110–11.
1.33 Schwartz, J. “Net Loss.” Slate, Febru- ary 28, 2013, http:// www.slate.com/ articles/sports/ sports_nut/2013/02/ nba?_stats_gurus_ can_t_work_ together_anymore_ that_s_a_problem.html.
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2
LEARNING GOALS
2.1 What is job performance? 2.2 What is task performance? 2.3 How do organizations identify the behaviors that underlie task performance? 2.4 What is citizenship behavior? 2.5 What is counterproductive behavior? 2.6 What workplace trends are affecting job performance in today’s organizations? 2.7 How can organizations use job performance information to manage employee performance?
After reading this chapter, you should be able to answer the following questions:
Job Performance
INDIVIDUAL OUTCOMES
INDIVIDUAL CHARACTERISTICS
GROUP MECHANISMS
ORGANIZATIONAL MECHANISMS
Organizational Culture
Teams: Characteristics &
Diversity
Ability
Personality & Cultural Values
Leadership: Power &
Negotiation
Organizational Commitment
Job Performance
Job Satisfaction
Stress
Motivation
INDIVIDUAL MECHANISMS
Trust, Justice, & Ethics
Learning & Decision Making
Organizational Structure
Leadership: Styles &
Behaviors
Teams: Processes &
Communication
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W hen you think of General Electric, or GE for short, company founder, Thomas Edison, might come to mind. You might also think of light bulbs or
appliances, GE products you may use every day. Depend- ing on your background, you might also think of medical equipment, jet engines, or even locomotives. In fact, GE is a huge multinational conglomerate with a diverse array of businesses, which include aviation, digital, energy, oil and gas, power, renewable energy, health care, appliances, lighting, and transportation. With operations in all these dif- ferent industries, it’s easy to appreciate the vast range of jobs that are held by GE’s workforce, which numbers well over 300,000 full- and part-time employees. You might also appreciate the management challenge faced by GE. That is, how does GE ensure that employees in all these different jobs produce results and perform in ways that are consis- tent with the company’s values and objectives?
In the mid 1950s GE established a management training center in Crotonville, New York, just east of the Hudson River, north of Manhattan about halfway to Poughkeepsie. High potential managers are sent to Crotonville to learn about practices that GE believes will promote high performance across the organization. For example, in the 1970s and 80s,
GE was facing competitive pressure from Asian manufactur- ers, and the company responded by training managers in practices, such as Six Sigma, that focused on reducing costs and increasing efficiency and quality in operations. With the adoption of these types of practices, GE employees were no longer just responsible for carrying out tasks involved in the design and manufacturing of products, but they were also accountable for measuring and eliminating defects and reducing waste through continuous improvements in manufacturing processes. During this period, GE managers also learned how to push their employees hard to achieve results with regard to these ends.
The training center in Crotonville continues to serve as a means of instilling GE’s values to managers. GE continues to believe this effort is vital to ensuring that employees across the globe function as one. However, the training that manag- ers receive at Crotonville has changed its focus to the type of performance needed for the company to thrive in a constantly evolving fast-paced global competitive environment. So, for example, to help enhance creativity and other behaviors nec- essary for innovation and rapid product development, GE man- agers receive training on things like mindfulness, emotional self-regulation, and the importance of constant feedback.
GENERAL ELECTRIC
©PA Images/Alamy
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J O B P E R F O R M A N C E
We begin our journey through the integrative model of organizational behavior with job perfor- mance. Why begin with job performance? Because understanding one’s own performance is a critical concern for any employee, and understanding the performance of employees in one’s unit is a critical concern for any manager. Consider for a moment the job performance of your univer- sity’s basketball coach. If you were the university’s athletic director, you might gauge the coach’s performance by paying attention to various behaviors. How much time does the coach spend on the road during recruiting season? How effective are the coach’s practices? Are the offensive and defensive schemes well-designed, and are the plays called during games appropriate? You might also consider some other behaviors that fall outside the strict domain of basketball. Does the coach run a clean program? Do players graduate on time? Does the coach represent the university well during interviews with the media and when in public?
Of course, as your university’s athletic director, you might be tempted to ask a simpler ques- tion: Is the coach a winner? After all, fans and boosters may not care how good the coach is at the previously listed behaviors if the team fails to win conference championships or make it deep into the NCAA tournament. Moreover, the coach’s performance in terms of wins and losses has important implications for the university because it affects ticket sales, licensing fees, and booster donations. Still, is every unsuccessful season the coach’s fault? What if the coach develops a well- conceived game plan but the players repeatedly make mistakes at key times in the game? What if the team experiences a rash of injuries or inherits a schedule that turns out to be much tougher than originally thought? What if a few games during the season are decided by fluke baskets or by bad calls by the referees?
This example illustrates one dilemma when examining job performance. Is performance a set of behaviors that a person does (or does not) engage in, or is performance the end result of those behaviors? You might be tempted to believe it’s more appropriate to define performance in terms of results rather than behaviors. This is because results seem more “objective” and are more con- nected to the central concern of managers—“the bottom line.” For example, the job performance of sales employees is often measured by the amount of sales revenue generated by each person over some time span (e.g., a month, a quarter, a year). For the most part, this logic makes perfect sense: Sales employees are hired by organizations to generate sales, and so those who meet or exceed sales goals are worth more to the organization and should be considered high performers. It’s very easy to appreciate how the sales revenue from each salesperson might be added up and used as an indicator of a business’s financial performance.
However, as sensible as this logic seems, using results as the primary indicator of job perfor- mance creates potential problems. First, employees contribute to their organization in ways that go beyond bottom line results, and so evaluating an employee’s performance based on results alone might give you an inaccurate picture of which employees are worth more to the organiza- tion. Second, there’s evidence that managers’ focus on bottom line results can create a bottom line mentality among employees, which in turn, results in social undermining—sabotaging coworkers’ reputations or trying to make them look bad.1 Similarly, the quest to enhance the bottom line may lead employees to violate policies and regulations, which in turn, may result in staggering legal fees, fines, and lost customers. As an example, Wells Fargo bank had long focused on employee sales of new accounts, and it has come to light that employees of the bank opened as many as two million accounts without their customers’ consent or knowledge.2 Third, results are often influenced by factors that are beyond the employees’ control—product quality, competition, equipment, tech- nology, budget constraints, coworkers, and supervisors, just to name a few. Fourth, even if these uncontrollable factors are less relevant in a given situation, there’s another problem with a results- based view of job performance: Results don’t tell you how to reverse a “bad year.” That is, perfor- mance feedback based on results doesn’t provide people with the information they need to improve their behavior. Walgreens, for example, uses knowledge of job performance behaviors to create comprehensive training and development programs so that employees can be effective at various jobs they may have throughout their careers with the company.3 In sum, given that the field of OB
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aims to understand, predict, and improve behavior, we refer to job performance as behav- ior. We use the term “results” or “job performance results” when referring to important outcomes that are associated with those behaviors.
So what types of employee behaviors constitute job per- formance? To understand this question, consider that job performance is formally defined as the value of the set of employee behaviors that contribute, either positively or negatively, to organiza- tional goal accomplishment.4 This definition of job performance includes behaviors that are within the control of employees, but it places a boundary on which behaviors are (and are not) relevant to job performance. For example, consider the behavior of a server in a restaurant that prides itself on world-class customer service. Texting a friend during a work break would not usually be relevant (in either a positive or negative sense) to the accomplishment of organiza- tional goals. That behavior is therefore not relevant to the server’s job performance. However, texting in the middle of taking a customer’s order would be relevant (in a negative sense) to organizational goal accomplishment. That behavior, therefore, is relevant to the server’s job performance.
W H AT D O E S I T M E A N TO B E A “ G O O D P E R F O R M E R ” ?
Our definition of job performance raises a number of important questions. Specifically, you might be wondering which employee behaviors fall under the umbrella heading of “job performance.” In other words, what exactly do you have to do to be a good performer? We could probably spend an entire chapter just listing various behaviors that are relevant to job performance. However, those behaviors generally fit into three broad categories.5 Two categories are task performance and citizenship behavior, both of which contribute positively to the organization. The third category is counterproductive behavior, which contributes negatively to the organization. The sections that fol- low describe these broad categories of job performance in greater detail.
TAS K P E R F O R M A N C E Task performance refers to employee behaviors that are directly involved in the transformation of organizational resources into the goods or services that the organization produces.6 If you read a description of a job in an employment ad online, that description will focus on task performance behaviors—the tasks, duties, and responsibilities that are a core part of the job. Put differently, task performance is the set of explicit obligations that an employee must fulfill to receive compensa- tion and continued employment. For a flight attendant, task performance includes announcing and demonstrating safety and emergency procedures and distributing food and beverages to pas- sengers. For a firefighter, task performance includes searching burning buildings to locate fire victims and operating equipment to put out fires. For an accountant, task performance involves preparing, examining, and analyzing accounting records for accuracy and completeness. Finally, for an advertising executive, task performance includes developing advertising campaigns and preparing and delivering presentations to clients.7
2.1 What is job performance?
Geno Auriemma has led the University of Connecti- cut women’s basketball team to 11 national championships (including four in a row), six perfect seasons, and 100 percent graduation rate for all four- year players. He’s been the Naismith College Coach of the Year seven times since taking over the team in 1985. If the Huskies suf- fered through a couple los- ing seasons, would Coach Auriemma be considered a low performer?
©Mike Carlson/Getty Images
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Although the specific activities that constitute task performance differ widely from one job to another, task performance also can be understood in terms of more general categories. One way of categorizing task performance is to consider the extent to which the context of the job is routine, changing, or requires a novel or unique solution. Routine task performance involves well- known responses to demands that occur in a normal, routine, or otherwise predictable way. In these cases, employees tend to behave in more or less habitual or programmed ways that vary little from one instance to another.8 As an example of a routine task activity, you may recall watching an expressionless flight attendant robotically demonstrate how to insert the seatbelt tongue into the seatbelt buckle before your flight takes off. Seatbelts haven’t really changed since . . . oh . . . 1920, so the instructions to passengers tend to be conveyed the same way, over and over again.
In contrast, adaptive task performance, or more commonly “adaptability,” involves employee responses to task demands that are novel, unusual, or, at the very least, unpredictable.9 For exam- ple, on August 2, 2005, Air France Flight 358, carrying 297 passengers and 12 crew members from Paris, France, to Toronto, Canada, skidded off the runway while landing and plunged into a ravine. Amid smoke and flames, the flight attendants quickly responded to the emergency and assisted three-quarters of the 297 passengers safely off the plane within 52 seconds, before the emergency response team arrived. One minute later, the remaining passengers and 12 crew mem- bers were out safely.10 From this example, you can see that flight attendants’ task performance shifted from activities such as providing safety demonstrations and handing out beverages to per- forming emergency procedures to save passengers’ lives. Although flight attendants receive train- ing so they can handle emergency situations such as this one, executing these behaviors effectively in the context of an actual emergency differs fundamentally from anything experienced previously.
Adaptive task performance is becoming increasingly important as globalization, technologi- cal advances, and knowledge-based work increase the pace of change in the workplace.11 In fact, adaptive task performance has become crucial in today’s global economy where companies have been faced with the challenge of becoming more productive with fewer employees on staff. For example, Sheboygan Falls, Wisconsin–based Johnsonville Sausage feels that adaptability is impor- tant for employees at all levels of the organization and has invested significant resources in train- ing to ensure that employees develop competency in this aspect of job performance.12 As another example, at the German chemical and pharmaceutical company Bayer, the hiring of plant direc- tors involves the search for candidates who not only possess a wide range of skills and abilities so that they can adapt to various job demands, but in addition, competence in helping others adapt to changes that occur in the workplace.13 Table 2-1 provides a number of examples of adaptability that are relevant to many jobs in today’s economy.14
Finally, creative task performance refers to the degree to which individuals develop ideas or physical outcomes that are both novel and useful.15 The necessity of including both novelty and usefulness in the definition of creativity can be illustrated with the following example of what effec- tive performance for a swimsuit designer involves. Consider first the case of a swimsuit designer who suggests in a meeting that next season’s line of swimsuits should be made entirely out of chrome-plated steel. Although this idea might be very novel, for many reasons it’s not likely to be very useful. Indeed, someone who offered an idea like this would likely be considered silly rather than creative. Another swimsuit designer suggests in the meeting that swimsuits for next season should be made out of materials that are attractive and comfortable. Although under some cir- cumstances such an idea might be useful, the idea is not novel because attractiveness and comfort are generally accepted design elements for swimsuits. Someone who offered an idea like this might be appreciated for offering input, but no one would consider this individual’s performance to be particularly creative. Finally, a third designer for this swimsuit manufacturer suggests that perhaps a two-piece design would be preferred for women, rather than a more traditional one-piece design. Although such an idea would not be considered creative today, it certainly was in 1946 when, in separate but nearly simultaneous efforts, Jacques Heim and Louis Reard introduced the bikini.16
Although you might be tempted to believe that creative task performance is only relevant to jobs such as artist and inventor, its emphasis has been increasing across a wide variety of jobs. Indeed, more than half the total wages and salary in the United States are paid to employees who need to be creative as part of their jobs, and as a consequence, some have argued that we are at the “dawn of the creative age.”17 This increase in the value of creative performance can be
2.2 What is task performance?
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TABLE 2-1 Behaviors Involved in Adaptability
BEHAVIORS SPECIFIC EXAMPLES
Handling emergencies or crisis situations
Quickly analyzing options for dealing with danger or crises and their implications; making split-second decisions based on clear and focused thinking
Handling work stress Remaining composed and cool when faced with difficult circumstances or a highly demanding workload or schedule; acting as a calming and settling influence to whom others can look for guidance
Solving problems creatively Turning problems upside-down and inside-out to find fresh new approaches; integrating seemingly unrelated information and developing creative solutions
Dealing with uncertain and unpredictable work situations
Readily and easily changing gears in response to unpredict- able or unexpected events and circumstances; effectively adjusting plans, goals, actions, or priorities to deal with chang- ing situations
Learning work tasks, tech- nologies, and work situations
Quickly and proficiently learning new methods or how to perform previously unlearned tasks; anticipating change in the work demands and searching for and participating in assign- ments or training to prepare for these changes
Demonstrating interpersonal adaptability
Being flexible and open-minded when dealing with others; listening to and considering others’ viewpoints and opinions and altering one’s own opinion when it’s appropriate to do so
Demonstrating cultural adaptability
Willingly adjusting behavior or appearance as necessary to comply with or show respect for others’ values and customs; understanding the implications of one’s actions and adjusting one’s approach to maintain positive relationships with other groups, organizations, or cultures
Source: Adapted from E.E. Pulakos, S. Arad, M.A. Donovan, and K.E. Plamondon, “Adaptability in the Workplace: Development of a Taxonomy of Adaptive Performance,” Journal of Applied Psychology 85 (2000), pp. 612–24. American Psychological Association.
explained by the rapid technological change and intense competition that mark today’s business landscape.18 In this context, employee creativity is necessary to spark the types of innovations that enable organizations to stay ahead of their competition. Because creative ideas do not always get implemented, it is important to recognize creative performance behaviors, as well as the creative outcomes that result from those behaviors.19
Now that we’ve given you a general understanding of task performance behaviors, you might be wondering how organizations identify the sets of behaviors that represent “task performance” for different jobs. Many organizations identify task performance behaviors by conducting a job analysis. Although there are many different ways to conduct a job analysis, most boil down to three steps. First, a list of the activities involved in a job is generated. This list generally results from data from several sources, including observations, surveys, and interviews of employees. Second, each activ- ity on this list is rated by “subject matter experts,” according to things like the importance and frequency of the activity. Subject matter experts generally have experience performing the job or managing the job and therefore are in a position to judge the importance of specific activities to the organization. Third, the activities that are rated highly in terms of their importance and fre- quency are retained and used to define task performance. Those retained behaviors then find their
2.3 How do organizations identify the behaviors that underlie task performance?
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way into training programs as learning objectives and into performance evaluation sys- tems as measures to evaluate task performance.
As an example, to deter- mine training objectives for production workers, Toyota uses a highly detailed job analysis process to identify important tasks as well as the behaviors necessary to effec- tively complete those tasks.20 The core job tasks involved in the job of a bumper-molding operator, for example, include
“routine core tasks,” “machine tending,” and “quality,” and each of these tasks further consists of several more detailed steps. For example, routine core tasks include de-molding, trimming, spray- molding, and sanding. Each of these tasks can be broken down further into more detailed steps, and in turn, the specific behaviors involved in each step become the focus of the training. For example, to de-mold the left side of the bumper, the worker must “use left thumb to push along edge of bumper,” “place pressure in the crease of thumb,” “push toward left side away from mold,” and “grasp top edge when bumper is released.” Although this level of detail might seem like an awful lot of analysis for what one might imagine to be a relatively straightforward job, Toyota competes on the basis of quality and cost, and its success in selling millions of Priuses, Camrys, Tacomas, and Highlanders each year has been attributed to its ability to train production workers to follow the standardized and efficient procedures.21
Men’s Wearhouse, the Houston-based retailer, provides another good example of an organiza- tion that uses task performance information to manage its employees.22 The company first gathers information about the employee’s on-the-job behaviors. For example, the job of wardrobe consul- tant involves greeting, interviewing and measuring customers properly, ensuring proper alteration revenue is collected, and treating customers in a warm and caring manner. After the information is gathered, senior managers provide feedback and coaching to the employee about which types of behaviors he or she needs to change to improve. The feedback is framed as constructive criticism meant to improve an employee’s behavior. Put yourself in the place of a Men’s Wearhouse wardrobe consultant for a moment. Wouldn’t you rather have your performance evaluated on the basis of behaviors such as those mentioned above, rather than some overall index of sales? After all, those behaviors are completely within your control, and the feedback you receive from your boss will be more informative than the simple directive to “sell more suits next year than you did this year.”
If organizations find it impractical to use job analysis to identify the set of behaviors needed to define task performance, they can turn to a database the government has created to help with that important activity. The Occupational Information Network (or O*NET) is an online database that includes, among other things, the characteristics of most jobs in terms of tasks, behaviors, and the required knowledge, skills, and abilities (http://www.onetonline.org). Figure 2-1 shows the O*NET output for a flight attendant’s position, including many of the tasks discussed previously in this chapter. Of course, O*NET represents only a first step in figuring out the important tasks for a given job. Many organizations ask their employees to perform tasks that their competitors do not, so their workforce performs in a unique and valuable way. O*NET cannot capture those sorts of unique task requirements that separate the most effective organizations from their competitors.
For example, the authors of a book titled Nuts identify “fun” as one of the dominant values of Southwest Airlines.23 Southwest believes that people are willing to work more productively and cre- atively in an environment that includes humor and laughter. Consistent with this belief, flight atten- dant task performance at Southwest includes not only generic flight attendant activities, such as those identified by O*NET, but also activities that reflect a sense of humor and playfulness. Effec- tive flight attendants at Southwest tell jokes over the intercom such as, “We’ll be dimming the lights
Toyota production workers assemble vehicles using
a highly standardized and efficient set of tasks.
©Eric Gay/AP Images
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in the cabin . . . pushing the light-bulb button will turn your reading light on. However, pushing the flight attendant button will not turn your flight attendant on.”24 As another example, Nisshinbo Automotive, a part of the Japanese company Nisshinbo Holdings, was faced with the challenge of increasing productivity with fewer workers. They developed a system where they not only evaluated and compensated employees for behaviors reflected in their job descriptions, but also in behaviors that supported the company’s mission defined more broadly.25 In summary, though O*NET may be a good place to start, the task information from the database should be supplemented with infor- mation regarding behaviors that support the organization’s values and strategy.
Before concluding our section on task performance, it’s important to note that task perfor- mance behaviors are not simply performed or not performed. Although poor performers often fail to complete required behaviors, it’s just as true that star performers often exceed all expectations for those behaviors.26 Moreover, although star performers are much rarer than those who perform poorly or at average levels, they are often quite visible in their fields.27 In fact, you can probably think of examples of employees who have engaged in task performance that’s truly extraordinary. Our OB on Screen feature certainly illustrates one!
C I T I Z E N S H I P B E H AV I O R Sometimes employees go the extra mile by actually engaging in behaviors that are not within their job description—and thus that do not fall under the broad heading of task performance. This situ- ation brings us to the second category of job performance, called citizenship behavior, which is defined as voluntary employee activities that may or may not be rewarded but that contribute to the organization by improving the overall quality of the setting or context in which work takes place.28 Have you ever had a coworker or fellow student who was especially willing to help some- one who was struggling? Who typically attended optional meetings or social functions to support his or her colleagues? Who maintained a good attitude, even in trying times? We tend to call those people “good citizens” or “good soldiers.”29 High levels of citizenship behavior earn them such
FIGURE 2-1 O*NET Results for Flight Attendants
O*NET, or Occupational Information Network, is an online government database that lists the characteristics of most jobs and the knowledge required for each. This sample is for the job of flight attendant.
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OB ON SCREEN SULLY
That’s the funny thing, I’ve delivered a million passengers over 40 years in the air, but in the end, I’m going to be judged by 208 seconds.
With those words, US Airways pilot Chesley Sullenberger (Tom Hanks) laments to First Officer Jeff Skiles (Aaron Eckart) that, despite years of performing his job effectively, his legacy hinges on judgments regarding what occurred during a three-and-a-half minute time span, in the movie Sully (Dir. Clint Eastwood, Flashlight Films, 2016). In this true story, Sullenberger, or Sully for short, was the pilot of Cactus 1549, which hit a flock of birds, destroying both engines, shortly after taking off from New York’s LaGuardia Airport. Sully calmly discussed the problem with his first officer and an air traffic controller, considered options, and ultimately chose to ditch the aircraft in the Hudson River. Although Sully executed a perfect water landing, and saved the lives of all 155 souls on board, investigators from the National Transportation Safety Board questioned his performance that day. Computer and piloted simulations indicated that Sully could have flown the damaged jet back to LaGuardia, or diverted to Teterboro, a nearby airport in New Jersey.
The opening quote reveals that Sully understood the tension between performance and results. He was an effective pilot for several decades. Yet his performance was being judged by the results of a single incident for which he had little control. The movie also illustrates that results are often in the eye of the beholder. Sully’s decision did result in the loss of a costly aircraft and put the pas- sengers and the crew at risk, however, the passengers and crew were all saved and each considered him to be a hero. Ultimately, the investigators came to the same conclusion as Sully’s passengers and others who referred to the incident as the “Miracle on the Hudson.” The simulations didn’t take into account the time needed to assess and understand the situation, and there wasn’t any precedent for losing both engines to a bird strike at such a low altitude in the middle of one of the most densely populated cities in the world.
©Pictorial Press Ltd/Alamy
titles. Although there are many different types of behaviors that might seem to fit the definition of citizenship behavior, research suggests two main categories that differ according to who benefits from the activity: coworkers or the organization (see Figure 2-2).30
The first category of citizenship behavior is the one with which you’re most likely to be familiar: interpersonal citizenship behavior. Such behaviors benefit coworkers and colleagues and involve
2.4 What is citizenship behavior?
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assisting, supporting, and developing other organizational members in a way that goes beyond normal job expectations.31 For example, helping involves assisting coworkers who have heavy workloads, aiding them with personal matters, and showing new employees the ropes when they first arrive on the job. Although helping may require a great deal of time and effort, it often makes a big difference in the lives of others, and for this reason, those who help others often experience positive emotions and a sense of being energized.32 Do you consider yourself a helpful person? Check the OB Assessments feature to see how helpful you really are. Courtesy refers to keeping coworkers informed about matters that are relevant to them. Some employees have a tendency to keep relevant facts and events secret. Good citizens do the opposite; they keep others in the loop because they never know what information might be useful to someone else. Sportsmanship involves maintaining a good attitude with coworkers, even when they’ve done something annoying or when the unit is going through tough times. Whining and complaining are contagious; good citizens avoid being the squeaky wheel who frequently makes mountains out of molehills.
Although interpersonal citizenship behavior is important in many different job contexts, it may be even more important when employees work in small groups or teams. A team with members who tend to be helpful, respectful, and courteous is also likely to have a positive team atmosphere in which members trust one another. This type of situation is essential to foster the willingness of team members to work toward a common team goal rather than goals that may be more self- serving.33 In fact, if you think about the behaviors that commonly fall under the “teamwork” heading, you’ll probably agree that most are examples of interpersonal citizenship behavior (see Chapter 12 on team processes and communication for more discussion of such issues).34
The second category of citizenship behavior is organizational citizenship behavior. These behaviors benefit the larger organization by supporting and defending the company, working to improve its operations, and being especially loyal to it.35 For example, voice involves speaking up and offering constructive suggestions regarding opportunities to improve unit or organizational functioning or to address problems that could lead to negative consequences for the organiza- tion.36 Although supervisors may react more positively to employee suggestions that focus on opportunities and initiatives to enhance the organization rather than on problems that need to be addressed in order to prevent potential harm, all forms of voice are important to organizational effectiveness.37 When there is an opportunity, good citizens express their ideas and suggestions
FIGURE 2-2 Types of Citizenship Behaviors
Organizational
Interpersonal
- Helping - Courtesy - Sportsmanship
- Voice - Civic Virtue - Boosterism
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OB ASSESSMENTS HELPING How helpful are you? This assessment is designed to measure helping, an interpersonal form of citizenship behavior. Think of the people you work with most frequently, either at school or at work. The questions refer to these people as your “work group.” Answer each question using the scale. Then sum up your answers. (Instructors: Assessments on sportsmanship, boosterism, political deviance, and trait creativity can be found in the PowerPoints in the Connect Library’s Instructor Resources and in the Connect assignments for this chapter.)
SCORING AND INTERPRETATION If your scores sum up to 40 or higher, you perform a high level of helping behavior, which means you frequently engage in citizenship behaviors directed at your colleagues. This is good, as long as it doesn’t distract you from fulfilling your own job duties and responsibilities. If your scores sum up to less than 40, you perform a low level of helping behaviors. You might consider paying more attention to whether your colleagues need assistance while working on their task duties.
Source: L.V. Van Dyne and J.A. LePine, “Helping and Voice Extra-Role Behaviors: Evidence of Construct and Predictive Validity,” Academy of Management Journal 41 (1998), pp. 108–19.
1 STRONGLY DISAGREE
2 MODERATELY
DISAGREE
3 SLIGHTLY DISAGREE
4 NEITHER
DISAGREE NOR AGREE
5 SLIGHTLY
AGREE
6 MODERATELY
AGREE
7 STRONGLY
AGREE
1. I volunteer to do things for my work group.
2. I help orient new members of my work group.
3. I attend functions that help my work group.
4. I assist others in my group with their work for the benefit of the group.
5. I get involved to benefit my work group.
6. I help others in this group learn about the work.
7. I help others in this group with their work responsibilities.
for positive change rather than remaining silent. Good citizens also react to bad rules or policies by constructively trying to change them as opposed to passively complaining about them (see Chapter 3 on organizational commitment for more discussion of such issues).38 Civic virtue refers to participating in the company’s operations at a deeper-than-normal level by attending voluntary meetings and functions, reading and keeping up with organizational announcements, and keeping abreast of business news that affects the company. Boosterism means representing the organiza- tion in a positive way when out in public, away from the office, and away from work. Think of friends you’ve had who worked for a restaurant. Did they always say good things about the res- taurant when talking to you and keep any “kitchen horror stories” to themselves? If so, they were being good citizens by engaging in high levels of boosterism.
Three important points should be emphasized about citizenship behaviors. First, as you’ve prob- ably realized, citizenship behaviors are relevant in virtually any job, regardless of the particular
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nature of its tasks,39 and research suggests that these behaviors can boost organizational effective- ness.40 As examples, research conducted in a paper mill found that the quantity and quality of crew output were higher in crews that included more workers who engaged in citizenship behavior.41 Research in 30 restaurants also showed that higher levels of citizenship behavior promoted higher revenue, better operating efficiency, higher customer satisfaction, higher performance quality, less food waste, and fewer customer complaints.42 Thus, it seems clear that citizenship behaviors have a significant influence on the bottom line.
Second, because citizenship behaviors are relatively discretionary and influenced by the spe- cific situation the employee is working in, they can vary significantly over time.43 In other words, an employee who engages in citizenship behavior during one point in time might not engage in citizenship behavior at other points in time. As an example, it’s likely that you’ve had a very posi- tive experience working with another student or colleague on a project and were willing to invest a great deal of extra effort in order to be helpful. At some point, however, the person with whom you were working may have done something that made you feel much less positive about the col- laboration and, as a consequence, you decided to withhold your extra help so that you could focus your energies elsewhere. In fact, researchers have shown that good citizens can develop citizenship fatigue, or the sense that one is worn out and on edge from engaging in citizenship.44 Citizenship fatigue reduces future acts of citizenship, and may be especially likely to occur when good citizens feel that their extra efforts are not supported, or they experience pressure to continue to engage in citizenship even when they’re already feeling stretched by other demands.
Third, from an employee’s perspective, it may be tempting to discount the importance of citi- zenship behaviors—to just focus on your own job tasks and leave aside any “extra” stuff. After all, citizenship behaviors appear to be voluntary and optional, whereas task performance requirements are not. However, discounting citizenship behaviors is a bad idea because supervisors don’t always view such actions as optional. In fact, research on computer salespeople, insurance agents, pet- rochemical salespeople, pharmaceutical sales managers, office furniture makers, sewing machine operators, U.S. Air Force mechanics, and first-tour U.S. Army soldiers has shown that citizenship behaviors relate strongly to supervisor evaluations of job performance, even when differences in task performance are also considered.45 As we discuss in our OB Internationally feature, the tendency of supervisors to consider citizenship behaviors in evaluating overall job performance seems to hold even across countries with vastly different cultures.46 Of course, this issue has a lot of relevance to you, given that in most organizations, supervisors’ evaluations of employee job per- formance play significant roles in determining employee pay and promotions. Indeed, employee citizenship behavior has been found to influence the salary and promotion recommendations people receive, over and above their task performance.47 Put simply, it pays to be a good citizen.
C O U N T E R P R O D U C T I V E B E H AV I O R Now we move from the “good soldiers” to the “bad apples.” Whereas task performance and cit- izenship behavior refer to employee activities that help the organization achieve its goals and objectives, other activities in which employees engage do just the opposite. This third broad category of job performance is counterproductive behavior, defined as employee behaviors that intentionally hinder organizational goal accomplishment. The word “intentionally” is a key aspect of this definition; these are things that employees mean to do, not things they accidentally do. Although there are many different kinds of counterproductive behaviors, research suggests that— like task performance and citizenship behavior—they can be grouped into more specific categories (see Figure 2-3).48
Property deviance refers to behaviors that harm the organization’s assets and possessions. For example, sabotage represents the purposeful destruction of physical equipment, organizational pro- cesses, or company products. Do you know what a laser disc is? Probably not—and the reason you don’t is because of sabotage. A company called DiscoVision (a subsidiary of MCA) manufactured laser discs in the late 1970s, with popular movie titles like Smokey and the Bandit and Jaws retailing for $15.95. Although this price is approximately the same as a new movie on a Blu-ray disc today, it was far less than the $50–$100 needed to buy videocassettes (which were of inferior quality) at the time. Unfortunately, laser discs had to be manufactured in clean rooms because specks of
2.5 What is counterproductive behavior?
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OB INTERNATIONALLY As we’ve already explained, citizenship behavior tends to be viewed as relatively voluntary because it’s not often explicitly outlined in job descriptions or directly rewarded. However, people in orga- nizations vary in their beliefs regarding the degree to which citizenship behavior is truly voluntary, and these differences have important implications. As an example, consider a situation in which an employee engages in citizenship behaviors because of his or her belief that the behaviors are part of the job. However, this employee works for a supervisor who believes that citizenship behav- iors are unnecessary. Assuming that the supervisor would not consider the citizenship behaviors on a performance evaluation, the employee would likely react negatively because he or she has not been recognized for putting effort into activities that help other members of the organization.
So what types of factors cause differences in beliefs regarding whether or not citizenship behav- ior is discretionary? One factor that would appear to be important is national culture. It is widely believed that the culture in countries like the United States, Canada, and the Netherlands encour- ages behaviors that support competition and individual achievement, whereas the culture in coun- tries like China, Colombia, and Portugal encourages behaviors that promote cooperation and group interests over self-interests. On the basis of these cultural differences, it seems logical to expect that people from the former set of countries would consider citizenship behavior relatively unimportant compared with people from the latter set of countries. In reality, however, the find- ings from one recent study comparing Canadian and Chinese managers found that this cultural stereotype was simply not true. Managers in both countries not only took citizenship behavior into account when evaluating overall job performance, but the weight they gave to citizenship behavior in their overall evaluation of employees was the same. One explanation for this result is that the realities of running effective business organizations in a global economy have a signifi- cantly stronger impact on managerial practices than do cultural norms. It is important to note that the results of this study do not mean that we can ignore culture when trying to understand employee job performance. In fact, there are reasons to believe that cultural differences are impor- tant to consider when designing and implementing systems to manage employee performance.
Sources: F.F.T. Chiang and T.A. Birtch, “Appraising Performance across Borders: An Empirical Examination of the Pur- poses and Practices of Performance Appraisal in a Multi-Country Context.” Journal of Management Studies 47 (2010), pp. 1365–92; G.Hofstede, “Cultures and Organizations: Software of the Mind,” McGraw-Hill, New York, 1991; E.W. Morri- son, “Role Definitions and Organizational Citizenship Behavior: The Importance of the Employee’s Perspective.” Academy of Management Journal 37 (1994), pp. 1543–67; and M.Rotundo and J.L. Xie, “Understanding the Domain of Counterpro- ductive Work Behavior in China.” International Journal of Human Resource Management 86 (2008), pp. 856–77.
dust or debris could cause the image on the television to freeze, repeat, skip, or drop out. When MCA merged with IBM in 1979, the morale of the employees fell, and counterproductive behaviors began to occur. Employees sabotaged the devices that measured the cleanliness of the rooms. They also began eating in the rooms—even popping potato chip bags to send food particles into the air. This sabotage eventually created a 90 percent disc failure rate that completely alienated customers. As a result, despite its much lower production costs and higher-quality picture, the laser disc disap- peared, and the organizations that supported the technology suffered incredible losses.49
Even if you’ve never heard of the laser disc, you’ve certainly eaten in a restaurant. The cost of counterproductive behaviors in the restaurant industry is estimated to be 2–3 percent of rev- enues per year, but what may be more disturbing is the nature of those counterproductive behav- iors.50 Thirty-one percent of employees who responded to a survey knowingly served improperly prepared food, 13 percent intentionally sabotaged the work of other employees, and 12 percent admitted to intentionally contaminating food they prepared or served to a customer (yuck!). At a minimum, such sabotage of the restaurant’s product can lead to a bad meal and a customer’s
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promise to never return to that establishment. Of course, such behaviors can also lead to food poi- soning, health code violations, and a damaging lawsuit. Employees who sabotage customers may do so, under certain circumstances, as a response to perceived mistreatment by customers. It’s important to note, however, that retaliation in this manner is not justified, so it’s still considered a form of counterproductive behavior.51
Theft represents another form of property deviance and can be just as expensive as sabotage (if not more). Research has shown that up to three-quarters of all employees have engaged in coun- terproductive behaviors such as theft, and the cost of these behaviors is staggering.52 For example, one study estimated that 47 percent of store inventory shrinkage was due to employee theft and that this type of theft costs organizations approximately $14.6 billion per year.53 Maybe you’ve had friends who worked at a restaurant or bar and been lucky enough to get discounted (or even free) food and drinks whenever you wanted. Clearly that circumstance is productive for you, but it’s quite counterproductive from the perspective of the organization.
Production deviance is also directed against the organization but focuses specifically on reduc- ing the efficiency of work output. Wasting resources, when employees use too many materials or too much time to do too little work, is the most common form of production deviance. Manufac- turing employees who use too much wood or metal are wasting resources as are restaurant employ- ees who use too many ingredients when preparing the food. Workers who work too slowly or take too many breaks are also wasting resources because “time is money” (see Chapter 3 on organiza- tional commitment for more discussion of such issues). Substance abuse represents another form of production deviance. If employees abuse drugs or alcohol while on the job or shortly before coming to work, then the efficiency of their production will be compromised because their work will be done more slowly and less accurately.
In contrast to property and production deviance, political deviance refers to behaviors that inten- tionally disadvantage other individuals rather than the larger organization. Gossiping—casual con- versations about other people in which the facts are not confirmed as true—is one form of political deviance. Everyone has experienced gossip at some point in time and knows the emotions people feel when they discover that other people have been talking about them. Such behaviors under- mine the morale of both friendship groups and work groups. Incivility represents communication
Source: Adapted from S.L. Robinson and R.J. Bennett, “A Typology of Deviant Workplace Behaviors: A Multidimensional Scaling Study,” Academy of Management Journal 38 (1995), pp. 555–72.
FIGURE 2-3 Types of Counterproductive Behaviors
Production Deviance - Wasting resources - Substance abuse
Property Deviance - Sabotage - Theft
Political Deviance - Gossiping - Incivility
Personal Aggression - Harassment - Abuse
Organizational
Interpersonal
Minor Serious
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that’s rude, impolite, discourte- ous, and lacking in good man- ners.54 The erosion of manners seems like a society-wide phe- nomenon, and the workplace is no exception. Taken one by one, these political forms of counterproductive behav- ior may not seem particularly serious to most organizations. However, in the aggregate, acts of political deviance can create an organizational cli- mate characterized by distrust and unhealthy competitive- ness. Beyond the productivity losses that result from a lack of
cooperation among employees, organizations with this type of climate likely cannot retain good employees. Moreover, there’s some evidence that gossip and incivility can “spiral”—meaning that they gradually get worse and worse until some tipping point, after which more serious forms of interpersonal actions can occur.55
Those more serious interpersonal actions may involve personal aggression, defined as hostile verbal and physical actions directed toward other employees. Harassment falls under this heading and occurs when employees are subjected to unwanted physical contact or verbal remarks from a colleague. Abuse also falls under this heading; it occurs when an employee is assaulted or endan- gered in such a way that physical and psychological injuries may occur. You might be surprised to know that even the most extreme forms of personal aggression are actually quite prevalent in organizations. For example, on average in the United States about one employee each week is mur- dered by a current or previous coworker.56 As another example, about 54 million Americans are bullied at work each year.57 Bullying involves psychological harassment and abuse directed toward an individual or group of individuals.58 Examples of bullying include humiliation, social isolation, and systematic maltreatment, all of which results in the target of these behaviors feeling helpless.59 It might surprise you to learn that the source of the bullying is often a boss. We don’t believe that bosses are inherently evil, but some undoubtedly lose sight of the line between being tough and being a bully, and that what matters isn’t the intent of the behavior, but rather the perception of the person to whom the behavior is targeted.60 Acts of personal aggression can also be quite costly to organizations. For example, Mitsubishi Motor Manufacturing of America settled a class action sexual harassment lawsuit for $34 million after women at a plant in Normal, Illinois, complained of widespread and routine groping, fondling, lewd jokes, lewd behavior, and pornographic graffiti.61
Four points should be noted about counterproductive behavior. First, there’s evidence that peo- ple who engage in one form of counterproductive behavior also engage in others.62 In other words, such behaviors tend to represent a pattern of behavior rather than isolated incidents. Second, like citizenship behavior, counterproductive behavior is relevant to any job. It doesn’t matter what the job entails; there are going to be things to steal, resources to waste, and people to be uncivil toward. Third, counterproductive behavior may be contagious and its negative consequences may ripple throughout an organization.63 For example, researchers have found evidence that abusive behavior on the part of supervisors may result in counterproductive behavior among subordinates and vice versa.64 Researchers have also shown that supervisors who engage in incivility toward subordinates create a negative climate in their work groups, which reduces voice, and in turn, group effectiveness.65 Fourth, it’s often surprising which employees engage in counterproductive behavior. You might be tempted to guess that poor performers would be the ones who engage in high levels of counterproductive behavior, and that highly effective task performers do not engage in counterproductive behavior. In fact, however, there’s only a weak negative correlation between task performance and counterproductive behavior,66 and if you think about it for a moment, you can probably come up with a few examples of people who are very effective in their jobs but who
Counterproductive behav- ior by employees can be
destructive to the organiza- tion’s goals. In some set-
tings, such as a restaurant, it can even be a problem
for customers.
©Frank Wartenberg/Getty Images
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OB AT THE BOOKSTORE MASTERING CIVILITY by Christine Porath (New York: Grand Central Publishing, 2016).
I’m disappointed to report that the incivility problem still hasn’t been solved. In fact, it has gotten much worse. All of us desperately need to change this reality for the sake of people and organizations.
With those words, author Christine Porath out- lines the book’s main thesis, which is that incivil- ity is a problem in society and the workplace, and that we all need to be kinder to each other and to take concerted action to contribute to greater civility. On the one hand, this message may seem quite familiar. Does Aesop’s fable of the Lion and the Mouse come to mind? On the other hand, the book is filled with workplace examples and research findings which vividly underscore the rel- evance of incivility to managers and organizations.
In the first part of her book, Porath overviews surveys that indicate incivility has reached “crisis proportions” and is getting worse. She then pro- vides examples of incivility such as publicly mock- ing and belittling people, pointing our mistakes in an overly harsh and insulting way, and talking calls or texting in the middle of a conversation or
meeting. Although it might seem obvious that behaviors such as these are inappropriate, Porath identifies costs to these behaviors that may not be so obvious. As examples, people who are subject to or witness incivility experience impairment to their ability to process information and they also experience significant stress. To make matters worse, people who witness incivility are more likely to engage in incivility themselves. So it turns out that acts of incivility are not merely isolated incidents, they’re also contagious!
The book also provides a terrific balance of perspectives. First, it offers much to those who are interested in self-improvement. As an example, there’s a 32-item test that readers can use to gauge their level of incivility. There are also specific suggestions that interested readers can use to increase their own civility, such as seeking feedback from colleagues. Second, the book offers sug- gestions to managers who might be interested in promoting greater civility among employees. As an example, the author describes how interviews could be used to screen potential employees for incivility and how existing employees could be coached to enhance their civility.
©Roberts Publishing Services
also engage in high levels of counterproductive behavior. Sometimes the best task performers are the ones who can best get away with counterproductive actions, because they’re less likely to be suspected or blamed. Moreover, counterproductive behaviors might even be tolerated for a while where the individual is able to effectively accomplish very challenging tasks. Fortunately, as our OB at the Bookstore feature suggests, there may be ways of effectively managing certain types of counterproductive behaviors.
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S U M M A RY: W H AT D O E S I T M E A N TO B E A “G O O D P E R F O R M E R” ? So what does it mean to be a “good performer”? As shown in Figure 2-4, being a good per- former means a lot of different things. It means employees are good at the particular job tasks that fall within their job description, whether those tasks are routine or require adaptability or
FIGURE 2-4 What Does It Mean to Be a “Good Performer”?
Interpersonal - Helping - Courtesy - Sportsmanship
Organizational - Voice - Civic virtue - Boosterism
Property Deviance - Sabotage - Theft
Production Deviance - Wasting resources - Substance abuse
Political Deviance - Gossiping - Incivility
Personal Aggression - Harassment - Abuse
COUNTER- PRODUCTIVE
BEHAVIOR
CITIZENSHIP BEHAVIOR
TASK PERFORMANCE
Routine
Adaptive
JOB PERFORMANCE
Creative
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creativity. But it also means that employees engage in citizenship behaviors directed at both coworkers and the larger organization. It also means that employees refrain from engaging in the counterproductive behaviors that can badly damage the climate of an organization. The goal for any manager is, therefore, to have employees who fulfill all three pieces of this good performer description.
As you move forward in this book, you’ll notice that almost every chapter includes a descrip- tion of how that chapter’s topic relates to job performance. For example, Chapter 4 on job satisfaction will describe how employees’ feelings about their jobs affect their job performance. You’ll find that some chapter topics seem more strongly correlated with task performance, whereas other topics are more strongly correlated with citizenship behavior or counterproduc- tive behavior. Such differences will help you understand exactly how and why a given topic, be it satisfaction, stress, motivation, or something else, influences job performance. By the end of the book, you’ll have developed a good sense of the most powerful drivers of job performance.
T R E N D S A F F E C T I N G P E R F O R M A N C E
Now that we’ve described exactly what job performance is, it’s time to describe some of the trends that affect job performance in the contemporary workplace. Put simply, the kinds of jobs employ- ees do are changing, as is the way workers get organized within companies. These trends put pres- sure on some elements of job performance while altering the form and function of others.
K N OW L E D G E WO R K Historically speaking, research on organizational behavior has focused on the physical aspects of job performance. This focus was understandable, given that the U.S. economy was indus- trial in nature and the productivity of the employees who labored in plants and factories was of great concern. However, by the early 1990s, the majority of new jobs required employees to engage in cognitive work, applying theoretical and analytical knowledge acquired through edu- cation and continuous learning.67 Statistics from the U.S. Department of Labor confirm that this type of work, also called knowledge work, is becoming more prevalent than jobs involving physical activity.68
In addition to being more cognitive, knowledge work tends to be more fluid and dynamic in nature. Facts, data, and information are always changing. Moreover, as time goes by, it becomes easier to access more and more of these facts and data, using Google on an iPhone for example. In addition, the tools used to do knowledge work change quickly, with software, databases, and computer systems updated more frequently than ever. As those tools become more powerful, the expectations for completing knowledge work become more ambitious. After all, shouldn’t reports and presentations be more comprehensive and finished more quickly when every book used to create them is available online 24/7 rather than at some library? In fact, as many have recently noted, expectations regarding knowledge work can become overwhelming for employees, and as a consequence, new and innovative ways of performing this type of work may be necessary.69
S E RV I C E WO R K One of the largest and fastest growing sectors in the economy is not in industries that produce goods but rather in industries that provide services. Service work, or work that provides non- tangible goods to customers through direct electronic, verbal, or physical interaction, accounts for approximately 55 percent of the economic activity in the United States,70 and about 20 percent of the new jobs created are service jobs, trailing only professional services in terms of growth.71 Retail salespersons, customer service representatives, and food service workers represent the bulk of that service job growth. By comparison, maintenance, repair, construc- tion, and production jobs are projected to account for only 4–7 percent of new jobs over the next several years.
2.6 What workplace trends are affecting job performance in today’s organizations?
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The increase in service jobs has a num- ber of implications for job performance. For example, the costs of bad task performance are more immediate and more obvious. When customer service representatives do their job duties poorly, the customer is right there to notice. That failure can’t be hidden behind the scenes or corrected by other employees chipping in before it’s too late. In addition, service work contexts place a greater pre- mium on high levels of citizenship behavior and low levels of counterproductive behav- ior. If service employees refuse to help one another or maintain good sportsmanship, or
if they gossip and insult one another, those negative emotions get transmitted to the customer during the service encounter. Maintaining a positive work environment therefore becomes even more vital.
In fact, some very notable organizations compete successfully by placing special emphasis on the performance of people who do service work. Amazon, for example, believes that the best way to ensure that customers keep using its website to purchase merchandise is to ensure custom- ers are satisfied with their experience, especially when a transaction goes wrong, such as if mer- chandise arrives broken or an order doesn’t ship because the product is back ordered.72 Amazon customer service employees receive a great deal of training so that they can provide timely and consistent responses to customers who have questions or problems. In fact, customer service is so important to Amazon that each and every employee, including CEO Jeff Bezos, spends two days a year answering customer service calls.73 Apparently all this training has paid off: Amazon now ranks number one in customer service quality, scoring above companies such as The Ritz-Carlton and Lexus, which are famous for providing world-class customer service.74
A P P L I C AT I O N : P E R F O R M A N C E M A N AG E M E N T
Now that we’ve described what job performance is, along with some of the workplace trends that affect it, it’s time to discuss how organizations use job performance information. Good companies understand the linkage between employee job performance and organizational performance, and as a consequence they invest resources collecting information about employee performance so that it can be managed in a way that helps the organization achieve its mission.75 In this section, we describe general ways in which job performance information is used to manage employee perfor- mance. We spotlight four of the most representative practices: management by objectives, behav- iorally anchored rating scales, 360-degree feedback, and forced ranking. We’ll also discuss how social networking software is being used for performance management purposes in organizations.
M A N AG E M E N T BY O B J E C T I V E S Management by objectives (MBO) is a management philosophy that bases an employee’s evalu- ations on whether the employee achieves specific performance goals.76 How does MBO work? Typically, an employee meets with his or her manager to develop a set of mutually agreed-upon objectives that are measurable and specific (see Chapter 6 on motivation for more discussion of such issues). In addition, the employee and the manager agree on the time period for achieving those objectives and the methods used to do so. An example of a performance objective for a line manager in a factory might be something like, “Reducing production waste by 35 percent within three months by developing and implementing new production procedures.” Employee perfor- mance then can be gauged by referring to the degree to which the employee achieves results that are consistent with the objectives. If the line manager cuts production waste by 37 percent within
2.7 How can organizations use job performance informa- tion to manage employee performance?
Amazon CEO Jeff Bezos stresses the importance of
customer service.
©Marcus R. Donner/AP Images
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three months, the manager’s performance would be deemed effective, whereas if the manager only cuts production waste by 2 percent, his or her performance would be deemed ineffective. MBO is best suited for managing the performance of employees who work in contexts in which objective measures of performance can be quantified.
B E H AV I O R A L LY A N C H O R E D R AT I N G S CA L E S You might have noticed that MBO emphasizes the results of job performance as much as it does the performance behaviors themselves. In contrast, behaviorally anchored rating scales (BARS) measure performance by directly assessing job performance behaviors. The BARS approach uses “critical incidents”—short descriptions of effective and ineffective behaviors—to create a measure that can be used to evaluate employee performance. As an example of a BARS approach, consider the measure of task performance shown in Table 2-2, which focuses on the “planning, organizing, and scheduling” dimension of task performance for a manager.77 The rater reads the behaviors on the right column of the measure, and then selects a rating, in the left column, that corresponds to the behavior that best matches actual observations of the manager’s behavior.78
Source: Adapted from D.G. Shaw, C.E. Schneier, and R.W. Beatty, “Managing Performance with a Behaviorally Based Appraisal System,” Applying Psychology in Business: The Handbook for Managers and Human Resource Professionals, ed. J.W. Jones, B.D. Steffy, and D.W. Bray (Lexington, MA: Lexington Books, 2001), pp. 314–25.
TABLE 2-2 BARS Example for “Planning, Organizing, and Scheduling”
RATING BEHAVIORAL ANCHORS
[ 7 ] Excellent • Develops a comprehensive project plan, documents it well, obtains required approval, and distributes the plan to all concerned.
[ 6 ] Very Good • Plans, communicates, and observes milestones; states week by week where the project stands relative to plans. Maintains up-to-date charts of project accomplishment and backlogs and uses these to optimize any schedule modifications required.
• Experiences occasional minor operational problems but communicates effectively.
[ 5 ] Good • Lays out all the parts of a job and schedules each part to beat schedule; will allow for slack.
• Satisfies customer’s time constraints; time and cost overruns occur infrequently.
[ 4 ] Average • Makes a list of due dates and revises them as the project progresses, usually adding unforeseen events; investigates frequent customer complaints.
• May have a sound plan but does not keep track of mile- stones; does not report slippages in schedule or other prob- lems as they occur.
[ 3 ] Below Average • Plans are poorly defined; unrealistic time schedules are common. • Cannot plan more than a day or two ahead; has no concept
of a realistic project due date.
[ 2 ] Very Poor • Has no plan or schedule of work segments to be performed. • Does little or no planning for project assignments.
[ 1 ] Unacceptable • Seldom, if ever, completes project because of lack of plan- ning and does not seem to care.
• Fails consistently due to lack of planning and does not inquire about how to improve.
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Typically, supervisors rate several performance dimensions using BARS and score an employ- ee’s overall job performance by taking the average value across all the dimensions. Because the critical incidents convey the precise kinds of behaviors that are effective and ineffective, feedback from BARS can help an employee develop and improve over time. That is, employees can develop an appreciation of the types of behaviors that would make them effective. Such information pro- vides a nice complement to MBO, which is less capable of providing specific feedback about why an objective might have been missed.
3 6 0 - D E G R E E F E E D B AC K The 360-degree feedback approach involves collecting performance information not just from the supervisor but from anyone else who might have firsthand knowledge about the employ- ee’s performance behaviors. These other sources of performance information typically include the employee’s subordinates, peers, and customers. With the exception of the supervisor’s rat- ings, the ratings are combined so that the raters can remain anonymous to the employee. Most 360-degree feedback systems also ask the employee to provide ratings of his or her own perfor- mance. The hope is that this 360-degree perspective will provide a more balanced and comprehen- sive examination of performance. By explicitly comparing self-provided ratings with the ratings obtained from others, employees can develop a better sense of how their performance may be deficient in the eyes of others and exactly where they need to focus their energies to improve.
Although the information from a 360-degree feedback system can be used to evaluate employ- ees for administrative purposes such as raises or promotions, there are problems with that sort of application. First, because ratings vary across sources, there is the question of which source is most “correct.” Even if multiple sources are taken into account in generating an overall perfor- mance score, it’s often unclear how the information from the various sources should be weighted. Second, raters may give biased evaluations if they believe that the information will be used for compensation, as opposed to just skill development. Peers in particular may be unwilling to pro- vide negative information if they believe it will harm the person being rated. As a result, 360-degree feedback is best suited to improving or developing employee talent, especially if the feedback is accompanied by coaching about how to improve the areas identified as points of concern.
F O R C E D R A N K I N G One of the most notable practices that Jack Welch, Fortune’s Manager of the 20th Century,79 used to manage his workforce at General Electric involved evaluations that make clear distinc- tions among employees in terms of their job performance. Specifically, Welch employed a system that differentiated employees using the “vitality curve,” depicted in Figure 2-5. Managers were required to rank all of their subordinates, and the rankings were used to place employees in one of three categories: the top 20 percent (A players), the vital middle 70 percent (B players), or the bottom 10 percent (C players). The A players were thought to possess “the four Es of GE leadership: very high energy levels, the ability to energize others around common goals, the edge to make tough yes-and-no decisions, and finally the ability to consistently execute and deliver on their promises.”80 The B players were the focus of development. According to Welch, B players are the backbone of the company but lack the passion of As. The C players refer to those employ- ees who could not get the job done and were let go. The system was taken so seriously at GE that managers who couldn’t differentiate their people tended to find themselves in the C category.81
Estimates are that about 20 percent of Fortune 500 companies adopted some variant of Welch’s forced ranking system, also known as “rank and yank” or the “dead man’s curve.”82 However, there are some important limitations to this system of performance management. For example, some believe the system is inherently unfair because it forces managers to give bad evaluations to employees who may be good performers, just to reach a pre-established percentage. As other examples, employees may become competitive with one another to avoid finding themselves in a lower category, or they may avoid stepping outside the bounds of routine task behaviors for fear of standing out or making a mistake. Unfortunately, these behaviors are the exact opposite of what may be needed in today’s team-based organizations that requite cooperativeness and creativity.
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For these reasons, organizations today (including GE) have moved away from performance man- agement systems that rely upon forced ranking of employees.83
S O C I A L N E T WO R K I N G SYST E M S Most of you reading this book are familiar with social networking services such as Facebook and Twitter. Well, this technology has recently been applied in organizational contexts to develop and evaluate employee job performance.84 As an example, Accenture uses a Facebook-styled pro- gram called “Performance Multiplier,” which requires that employees post and update weekly and quarterly goals. Managers then monitor the information and provide feedback.85 As another example, a Toronto-based software company called Rypple uses a Twitter-like program to enable employees to post questions about their own performance so that other employees can give them anonymous feedback.86 Although the effectiveness of social networking applications for perfor- mance evaluation and employee development purposes has not been studied scientifically, there are some advantages that make us believe that they will grow in popularity. For example, these types of systems provide performance information that is much more timely, relative to tradi- tional practices that measure performance quarterly or even yearly. Although it might be unpleas- ant to learn from your peers that a presentation you gave was boring, it’s much better than giving 50 boring presentations over the course of the year and then getting the news from your boss.
FIGURE 2-5 Jack Welch’s Vitality Curve
“Top 20” “The Vital 70” “Bottom 10”
Source: Adapted from “Jack” by Jack Welch with John A. Byrne, John F. Welch Jr. Foundation, 2001.
2.1 Job performance is the set of employee behaviors that contribute to organizational goal accomplishment. Job performance has three dimensions: task performance, citizenship behavior, and counterproductive behavior.
2.2 Task performance includes employee behaviors that are directly involved in the transforma- tion of organizational resources into the goods or services that the organization produces. Examples of task performance include routine task performance, adaptive task performance, and creative task performance.
TA K E AWAY S
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2.1 Describe your “job” as a student in terms of the job performance dimensions discussed in this chapter. What would be the benefit of approaching student performance from a behavior perspective rather than from an outcome (grades) perspective? What would the downsides of this approach be? How would grading policies in your classes have to change to accommodate a behavior approach to student performance?
2.2 Describe the job that you currently hold or hope to hold after graduation. Now look up that job in the O*NET database. Does the profile of the job fit your expectations? Are any task behaviors missing from O*NET’s profile?
2.3 Describe a job in which citizenship behaviors would be especially critical to an organiza- tion’s functioning, and one in which citizenship behaviors would be less critical. What is it about a job that makes citizenship more important?
D I S C U S S I O N Q U E S T I O N S
K E Y T E R M S
• Job performance p. 31 • Task performance p. 31 • Routine task performance p. 32 • Adaptive task performance p. 32 • Creative task performance p. 32 • Job analysis p. 33 • Occupational Information
Network (O*NET) p. 34 • Citizenship behavior p. 35 • Interpersonal citizenship
behavior p. 36 • Helping p. 37 • Courtesy p. 37 • Sportsmanship p. 37 • Organizational citizenship
behavior p. 37 • Voice p. 37 • Civic virtue p. 38 • Boosterism p. 38 • Counterproductive behavior p. 39
• Property deviance p. 39 • Sabotage p. 39 • Theft p. 41 • Production deviance p. 41 • Wasting resources p. 41 • Substance abuse p. 41 • Political deviance p. 41 • Gossiping p. 41 • Incivility p. 41 • Personal aggression p. 42 • Harassment p. 42 • Abuse p. 42 • Knowledge work p. 45 • Service work p. 45 • Management by objectives
(MBO) p. 46 • Behaviorally anchored rating
scales (BARS) p. 47 • 360-degree feedback p. 48 • Forced ranking p. 48
2.3 Organizations gather information about relevant task behaviors using job analysis and O*NET.
2.4 Citizenship behaviors are voluntary employee activities that may or may not be rewarded but that contribute to the organization by improving the overall quality of the setting in which work takes place. Examples of citizenship behavior include helping, courtesy, sportsman- ship, voice, civic virtue, and boosterism.
2.5 Counterproductive behaviors are employee behaviors that intentionally hinder organiza- tional goal accomplishment. Examples of counterproductive behavior include sabotage, theft, wasting resources, substance abuse, gossiping, incivility, harassment, and abuse.
2.6 A number of trends have affected job performance in today’s organizations. These trends include the rise of knowledge work and the increase in service jobs.
2.7 MBO, BARS, 360-degree feedback, and forced ranking practices are four ways that organiza- tions can use job performance information to manage employee performance.
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GE has played an influential role in managerial practice, in part, because of a highly charismatic CEO named Jack Welch, who ran the company from 1981 to 2001. In light of intense competi- tive pressures and the commoditization of many of GE products, Welch focused on goals related to costs, efficiency, and operational excellence, and he instituted practices that reinforced employee behaviors to ensure that his goals could be met. As an example, Welch advocated an annual job performance review process that drew sharp distinctions between effective and inef- fective employees. He felt that the best way to do this was to have managers rank employees rela- tive to their peers and to fire the bottom 10 percent. Welch’s hard-nosed approach to managing the performance of his employees led GE to great success during his tenure.
Welch’s successor at GE, Jeff Immelt, recognized that a new set of employee behaviors was necessary to compete in a changing competitive environment where technology and innovation are making product life cycles shorter. Rather than focusing on doing things in the most cost-effective and efficient way, and without error, employees need to take risks and test new ideas, and incor- porate learning from errors into deliverables. With this shift in thinking, Immelt moved GE away from many of the rigid practices that Welch implemented, including the “rank and yank” annual performance review system. Immelt and others at the company came to believe that the system promoted competitiveness rather than cooperation, and that it had become a time-consuming ritual that hindered the type of risk taking necessary for the company to succeed in the 21st century.
In fact, GE has moved away from formalized annual reviews of employee job performance altogether. Rather than rating employees each year on a scale that results in labels such as “role model,” “strong contributor,” or “unsatisfactory,” the company has adopted a smartphone app called PD@GE, which facilitates ongoing performance feedback throughout the year. Manag- ers are expected to have frequent discussions, or “touchpoints,” with employees on short-term priorities so that discrepancies can be fixed quickly. Employees can also use the app to request feedback from others in the organization so that they have a better understanding of whether they should continue to do something or to change what they are doing. Although there are still open questions regarding how the system can be used to support compensation decisions, the company is convinced that it will provide feedback to employees that is more relevant and timely.
2.1 How well do you think that Jack Welch’s performance review system evaluated employee job performance (as we have defined it in this chapter)? Which specific dimensions of job performance do you think his system emphasized?
2.2 Describe advantages of the PD@GE app as a means of evaluating employee job performance.
2.3 Describe disadvantages of the PD@GE app. Explain why managers with longer tenure at GE may have doubts about the effectiveness of the PD@GE app. What could be done to alleviate potential concerns?
Sources: M. LaMagna, “Why Major Companies Are Getting Rid of Traditional Performance Reviews,” Marketwatch, July 12, 2016, http://www.marketwatch.com/story/why-major-companies-are-getting-rid-of-traditional-performance-reviews-2016- 06-06; M. Nisen, “How Millennials Forced GE to Scrap Performance Reviews,” The Atlantic (from the archive of partner QUARTZ), August 18, 2015, https://www.theatlantic.com/politics/archive/2015/08/how-millennials-forced-ge-to-scrap- performance-reviews/432585/; R. Silverman, “GE Re-Engineers Performance Reviews, Pay Practices.” The Wall Street Journal, June 8, 2016, https://www.wsj.com/articles/ge-re-engineers-performance-reviews-pay-practices-1465358463; and R. Silverman, “GE Does Away with Employee Ratings,” The Wall Street Journal, July 26, 2016, https://www.wsj.com/ article_email/ge-does-away-with-employee-ratings-1469541602-lMyQjAxMTA2ODI2NzEyODcyWj.
C A S E : G E
2.4 Figure 2-3 classifies production deviance and political deviance as more minor in nature than property deviance and personal aggression. When might those “minor” types of coun- terproductive behavior prove especially costly?
2.5 Consider how you would react to 360-degree feedback. If you were the one receiving the feed- back, whose views would you value most: your manager’s or your peer’s? If you were asked to assess a peer, would you want your opinion to affect that peer’s raises or promotions?
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EXERCISE: PERFORMANCE OF A SERVER
The purpose of this exercise is to explore what job performance means for a server in a restau- rant. This exercise uses groups of participants, so your instructor will either assign you to a group or ask you to create your own group. The exercise has the following steps:
2.1 Conduct a job analysis for a restaurant server. Begin by drawing a circle like the one below. Use that circle to summarize the major job dimensions of a restaurant server. For example, one job dimension might be “Taking Orders.” Divide the circle up with four additional job dimensions. Now get more specific by listing two behaviors per job dimension. For example, two behaviors within the “Taking Orders” dimension might be “Describing the Menu” and “Making Recommendations.” At the end of step 1, you should have a list of eight specific behaviors that summarize the tasks involved in being a restaurant server. Write your group’s behaviors down on the board or on a transparency, leaving some space for some additional behaviors down the line.
2.2 Take a look at the resulting list. Did you come up with any behaviors that would be described as “citizenship behaviors”? If you didn’t include any in your list, does that mean that citizen- ship behavior isn’t important in a restaurant setting? If your group includes someone who has worked as a server, ask him or her to describe the importance of citizenship behavior. Come up with two especially important citizenship behaviors and add those to your list.
2.3 Take another look at your list. Did you come up with any behaviors that would be described as “counterproductive behaviors”? If you didn’t include any, does that mean that counterpro- ductive behavior isn’t an important concern in a restaurant setting? If your group includes someone who has worked as a server, ask him or her to describe the potential costs of coun- terproductive behavior. Come up with two costly counterproductive behaviors and add (the avoidance of) them to your list.
2.4 Class discussion (whether in groups or as a class) should center on how a restaurant owner or manager might use the resulting list to evaluate the performance of restaurant servers. How could this list be used to assess server performance? Would such an approach be valu- able? Why or why not?
Taking Orders
2.1 Duffy, M.K.; K.L. Scott; J.D. Shaw; B.J. Tepper; and K. Aquino. “A Social Context Model of Envy and Social Under- mining.” Academy of Management Journal 55
(2012), pp. 643–66; and Greenbaum, R.L.; M.B. Mawritz; and G. Eissa. “Bottom-Line Mentality as an Antecedent of Social Undermining and the Moderating Roles of
Core Self-Evalutions and Conscientiousness.” Jour- nal of Applied Psychology 97 (2012), pp. 343–59.
2.2 Corkery, M. “Wells Fargo Struggling in Aftermath of Fraud
E N D N OT E S
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Scandal.” The New York Times, January 13, 2017. https://www .nytimes.com/2017/ 01/13/business/ dealbook/wells-fargo- earnings-report .html?_r=0
2.3 Shawel, T. “Home- grown Career Develop- ment.” HR Magazine, April 2011, pp. 36–38.
2.4 Campbell, J.P. “Model- ing the Performance Prediction Problem in Industrial and Organi- zational Psychology.” In Handbook of Indus- trial and Organizational Psychology, Vol. 1, 2nd ed., ed. M.D. Dunnette and L.M. Hough. Palo Alto, CA: Consulting Psychologists Press, 1990, pp. 687–732; and Motowidlo, S.J.; W.C. Borman; and M.J. Schmit. “A Theory of Individual Differences in Task and Contextual Performance.” Human Performance 10 (1997), pp. 71–83.
2.5 Borman, W.C., and S.J. Motowidlo. “Expanding the Criterion Domain to Include Elements of Contextual Perfor- mance.” In Personnel Selection in Organiza- tions, ed. N. Schmitt and W.C. Borman. San Francisco: Jossey-Bass, 1993, pp. 71–98.
2.6 Ibid.
2.7 Occupational Informa- tion Network (O*NET) OnLine (n.d.), http:// online.onetcenter.org/.
2.8 Weiss, H.M., and D.R. Ilgen. “Routinized Behavior in Organiza- tions.” Journal of
Behavioral Economics 24 (1985), pp. 57–67.
2.9 LePine, J.A.; J.A. Colquitt; and A. Erez. “Adaptability to Changing Task Contexts: Effects of General Cognitive Ability, Conscientious- ness, and Openness to Experience.” Personnel Psychology 53 (2000), pp. 563–93.
2.10 CBC News. “Plane Fire at Pearson Airport: Flight 358.” Indepth website, August 8, 2005, http://www.cbc .ca/news/background/ plane_fire/.
2.11 Ilgen, D.R., and E.D. Pulakos. “Employee Performance in Today’s Organizations.” In The Changing Nature of Work Performance: Implications for Staffing, Motivation, and Development, ed. D.R. Ilgen and E.D. Pulakos. San Francisco: Jossey-Bass, 1999, pp. 1–20.
2.12 Haneberg, L. “Training for Agility: Building the Skills Employees Need to Zig and Zag.” Train- ing and Development, September 2011, pp. 51–56.
2.13 Associated Press. “Unemployed Find Old Jobs Now Require More Skills.” Gaines- ville Sun, October 11, 2010, p. 7A.
2.14 Pulakos, E.D.; S. Arad; M.A. Donovan; and K.E. Plamondon. “Adaptability in the Workplace: Develop- ment of a Taxonomy of Adaptive Performance.”
Journal of Applied Psychology 85 (2000), pp. 612–24.
2.15 Amabile, T.M. “How to Kill Creativity.” Harvard Business Review 76 (1998), pp. 76–88.
2.16 “Bikini Trivia: His- tory of the Bikini” (n.d.), http://www .everythingbikini.com/ bikini-history.html.
2.17 Florida, R. “America’s Looming Creativity Crisis.” Harvard Busi- ness Review 82 (2004), pp. 122–36.
2.18 Grant, A.M., and J.W. Berry. “The Necessity of Others Is the Mother of Invention: Intrinsic and Prosocial Motiva- tions, Perspective Taking, and Creativity.” Academy of Manage- ment Journal 54 (2011), pp. 73–96; and George, J.M. “Creativ- ity in Organizations.” Academy of Manage- ment Annals, Vol. 1, ed. J.P. Walsh and A.P. Brief. New York: Erlbaum, 2007, pp. 439–77.
2.19 Baer, M. “Putting Creativity to Work: The Implementation of Creative Ideas in Orga- nizations.” Academy of Management Journal 55 (2012), pp. 1102–19.
2.20 Liker, J.K., and D. P. Meier. Toyota Talent: Developing Your People the Toyota Way. New York: McGraw-Hill, 2007.
2.21 Ibid.
2.22 O’Reilly III, C.A., and J. Pfeffer. Hidden
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Value: How Great Companies Achieve Extraordinary Results with Ordinary People. Boston: Harvard Busi- ness School Press, 2000.
2.23 Freidberg, K., and J. Freidberg. Nuts! South- west Airlines’ Crazy Recipe for Business and Personal Success. Austin, TX: Bard Press, 1996.
2.24 Kaplan, M.D.G. “What are you, a comedian?” USA Weekend.com, July 13, 2003.
2.25 Krell, E. “All for Incen- tives, Incentives for All.” HR Magazine, January 2011, pp. 35–38.
2.26 Ibid.
2.27 Aguinis, H.; E. O’Boyle, Jr.; E. Gonzalez-Mule; and H. Joo. “Cumula- tive Advantage: Con- ductors and Insulators of Heavy-Tailed Pro- ductivity Distributions and Productivity Stars.” Personnel Psychology 69 (2016), pp. 3–66; and Call, M.L.; A.J. Nyberg; and S.M.B. Thatcher. “Stargazing: An Integrative Concep- tual Review, Theoretical Reconciliation, and Extension for Star Employee Research.” Journal of Applied Psychology 100 (2015), pp. 623–40.
2.28 Borman and Motow- idlo, “Expanding the Criterion Domain.”
2.29 Organ, D.W. Organi- zational Citizenship
Behavior: The Good Soldier Syndrome. Lex- ington, MA: Lexington Books, 1988.
2.30 Coleman, V.I., and W.C. Borman. “Investigating the Underlying Struc- ture of the Citizenship Performance Domain.” Human Resource Management Review 10 (2000), pp. 25–44.
2.31 Ibid.
2.32 Lanaj, K.; R.E. John- son; and M. Wang. “When Lending a Hand Depletes the Will: The Daily Costs and Benefits of Helping.” Journal of Applied Psy- chology 100 (2016), pp. 1097–110.
2.33 MacMillan, P. The Performance Factor: Unlocking the Secrets of Teamwork. Nashville, TN: Broadman & Hol- man, 2001.
2.34 LePine, J.A.; R.F. Piccolo; C.L. Jackson; J.E. Mathieu; and J.R. Saul. “A Meta-Analysis of Teamwork Process: Towards a Better Understanding of the Dimensional Structure and Relationships with Team Effectiveness Criteria.” Personnel Psychology 61 (2008), pp. 273–307.
2.35 Coleman and Borman, “Investigating the Underlying Structure.”
2.36 Liang, J.; C.I. Farh; and J.L. Farh. “Psycho- logical Antecedents of Promotive and Pro- hibitive Voice: A Two- Wave Examination.”
Academy of Manage- ment Journal 55 (2012), pp. 71–92; Morrison, E.W. “Employee Voice Behavior: Integration and Directions for Future Research.” Academy of Manage- ment Annals (5) 2011, pp. 373–412; Morrison, E.W. “Employee Voice and Silence.” Annual Review of Organizational Psychology and Orga- nizational Behavior (1) 2014, pp. 173–97; and Van Dyne, L., and J.A. LePine. “Helping and Voice Extra-Role Behav- iors: Evidence of Con- struct and Predictive Validity.” Academy of Management Journal 41 (1998), pp. 108–19.
2.37 Bashshur, M.R., and O. Burak. “When Voice Matters: A Multilevel Review of the Impact of Voice in Organiza- tions.” Journal of Man- agement (41) 2015, pp. 1530–54; and Chamber- lin, M.; D.W. Newton; and J.A. LePine. “A Meta-Analysis of Voice and Its Promotive and Prohibitive Forms: Identification of Key Associations, Distinc- tions, and Future Research Directions.” Personnel Psychology 70 (2017), pp. 11–71.
2.38 Burris, E.R. “The Risks and Rewards of Speak- ing Up: Managerial Responses to Employee Voice.” Academy of Management Journal 55 (2012), pp. 851–75; Liu, W.; S. Tangirala; W. Lam; Z. Chen; R.T. Jia; and X. Huang.
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“How and When Peers’ Positive Mood Influence Employees’ Voice.” Journal of Applied Psychology 100 (2015), pp. 976–89; and Van Dyne, L., and J.A. LePine. “Helping and Voice Extra-Role Behavior: Evidence of Construct and Predic- tive Validity.” Academy of Management Journal 41 (1998), pp. 108–19.
2.39 Motowidlo, S.J. “Some Basic Issues Related to Contex- tual Performance and Organizational Citizenship Behavior in Human Resource Management.” Human Resource Management Review 10 (2000), pp. 115–26.
2.40 Podsakoff, N.P; S.W. Whiting; P.M. Podsakoff; and B.D. Blume. “Individual- and Organizational-Level Consequences of Organizational Citizen- ship Behaviors: A Meta-Analysis.” Journal of Applied Psychology 94 (2009), pp. 122–41; and Podsakoff, P.M.; S.B. MacKenzie; J.B. Paine; and D.G. Bachrach. “Organi- zational Citizenship Behaviors: A Critical Review of the Theoreti- cal and Empirical Lit- erature and Suggestions for Future Research.” Journal of Management 26 (2000), pp. 513–63.
2.41 Podsakoff, P.M.; M. Ahearne; and S.B. MacKenzie. “Organi- zational Citizenship
Behavior and the Quantity and Quality of Work Group Per- formance.” Journal of Applied Psychology 82 (1997), pp. 262–70.
2.42 Walz, S.M., and B.P. Neihoff. “Organiza- tional Citizenship Behaviors and Their Effect on Organiza- tional Effectiveness in Limited-Menu Res- taurants.” In Academy of Management Best Papers Proceedings, ed. J.B. Keys and L.N. Dosier. Statesboro, GA: College of Busi- ness Administration at Georgia Southern University, 1996, pp. 307–11.
2.43 Dalal, R.S.; H. Lam; H.M. Weiss; E.R. Welch; and C.L. Hulin. “A Within-Person Approach to Work Behavior and Perfor- mance: Concurrent and Lagged Citizenship- Counterproductivity Associations, and Dynamic Relationships with Affect and Overall Job Performance.” Academy of Manage- ment Journal 52 (2009), pp. 1051–66; and Koopman, J.; K. Lanaj; and B.A. Scott. “Integrating the Bright and Dark Sides of OCB: A Daily Investi- gation of the Benefits and Costs of Helping Others.” Academy of Management Journal 59 (2016), pp. 414–35.
2.44 Bolino, M.C.; H.H. Hsiung; Harvey, J.; and J.A. LePine. “‘Well,
I’m Tired of Tryin’!’ Organizational Citizen- ship Behavior and Citizenship Fatigue.” Journal of Applied Psychology 100 (2015), pp. 56–74.
2.45 Allen, T.D., and M.C. Rush. “The Effects of Organizational Citizenship Behavior on Performance Judg- ments: A Field Study and a Laboratory Experiment.” Journal of Applied Psychology 83 (1998), pp. 247–60; Avila, R.A.; E.F. Fern; and O.K. Mann. “Unraveling Criteria for Assessing the Perfor- mance of Sales People: A Causal Analysis.” Journal of Personal Selling and Sales Man- agement 8 (1988), pp. 45–54; Lowery, C.M., and T.J. Krilowicz. “Relationships among Nontask Behaviors, Rated Performance, and Objective Perfor- mance Measures.” Psychological Reports 74 (1994), pp. 571–78; MacKenzie, S.B.; P.M. Podsakoff; and R. Fet- ter. “Organizational Cit- izenship Behavior and Objective Productivity as Determinants of Managerial Evaluations of Salespersons’ Perfor- mance.” Organizational Behavior and Human Decision Processes 50 (1991), pp. 123–50; MacKenzie, S.B.; P.M. Podsakoff; and R. Fetter. “The Impact of Organizational Citizenship Behavior on Evaluation of Sales
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Performance.” Journal of Marketing 57 (1993), pp. 70–80; MacKenzie, S.B.; P.M. Podsakoff; and J.B. Paine. “Effects of Organizational Citizenship Behaviors and Productivity on Evaluation of Perfor- mance at Different Hierarchical Levels in Sales Organizations.” Journal of the Academy of Marketing Science 27 (1999), pp. 396–410; Motowidlo, S.J., and J.R. Van Scotter. “Evidence That Task Performance Should Be Distinguished from Contextual Performance.” Journal of Applied Psychology 79 (1994), pp. 475–80; Podsakoff, P.M., and S.B. MacKenzie. “Orga- nizational Citizenship Behaviors and Sales Unit Effectiveness.” Journal of Marketing Research 3 (February 1994), pp. 351–63; and Van Scotter, J.R., and S.J. Motowidlo. “Inter- personal Facilitation and Job Dedication as Separate Facets of Con- textual Performance.” Journal of Applied Psychology 81 (1996), pp. 525–31.
2.46 Rotundo, M., and P.R. Sackett. “The Relative Importance of Task, Citizenship, and Counterproductive Performance to Global Ratings of Job Perfor- mance: A Policy Captur- ing Approach.” Journal of Applied Psychology 87 (2002), pp. 66–80.
2.47 Allen and Rush, “The Effects of Organiza- tional Citizenship Behavior on Perfor- mance Judgments”; Kiker, D.S., and S.J. Motowidlo. “Main and Interaction Effects of Task and Contextual Performance on Supervisory Reward Decisions.” Journal of Applied Psychology 84 (1999), pp. 602–9; and Park, O.S., and H.P Sims Jr. “Beyond Cog- nition in Leadership: Prosocial Behavior and Affect in Managerial Judgment.” Working Paper, Seoul National University and Pennsyl- vania State University, 1989.
2.48 Marcus, B.; O.A. Taylor; S. E. Hastings; A. Strum; and O. Weigelt. “The Structure of Counterproductive Work Behavior: A Review, a Structural Meta-Analysis, and a Primary Study.” Journal of Manage- ment (42), pp. 203–33; and Robinson, S.L., and R.J. Bennett. “A Typology of Deviant Workplace Behaviors: A Multidimensional Scaling Study.” Acad- emy of Management Journal 38 (1995), pp. 555–72.
2.49 Cellitti, D.R. “MCA DiscoVision: The Record That Plays Pic- tures,” June 25, 2002, http://www.oz.net/ blam/DiscoVision/ RecordPlays Pictures.htm.
2.50 Hollweg, L. “Inside the Four Walls of the Restaurant: The Reality and Risk of Counter- Productive Behaviors,” 2003, http://www .batrushollweg.com/ files/Website.Inside_ the_Four?_Walls_ of_the_Restaurant1 .Reprint_9.pdf.
2.51 Wang, M.; H. Liao; Y. Zhan; and J. Shi. “Daily Customer Mistreatment and Employee Sabotage Against Customers: Examining Emotion and Resource Perspec- tives.” Academy of Management Journal 54 (2011), p. 31.
2.52 Harper, D. “Spotlight Abuse—Save Profits.” Industrial Distribution 79 (1990), pp. 47–51.
2.53 Hollinger, R.C., and L. Langton. 2004 National Retail Security Survey. Gainesville: University of Florida, Security Research Project, Department of Criminology, Law and Society, 2005.
2.54 Andersson, L.M., and C.M. Pearson. “Tit for Tat? The Spiraling Effect of Incivility in the Workplace.” Acad- emy of Management Review 24 (1999), pp. 452–71.
2.55 Ibid.
2.56 Armour, S. “Managers Not Prepared for Workplace Violence.” USA Today, July 19, 2004, http://www .usatoday.com/money/ workplace/2004-07-
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15-workplace- violence2_x.htm.
2.57 Daniel, T.A. “Tough Boss or Workplace Bully?” HR Magazine, June 2009, pp. 83–86.
2.58 Baillien, E.; N. De Cuyper; and H. De Witte. “Job Autonomy and Workload as Ante- cedents of Workplace Bullying: A Two-Wave Test of Karasek’s Job Demand Control Model for Targets and Perpetrators.” Journal of Occupational and Orga- nizational Psychology 84 (2010), pp. 191–208.
2.59 Cowie, H.; P. Naylor; I. Rivers; P.K. Smith; and B. Pereira. “Measuring Workplace Bullying.” Aggression and Violent Behavior 7 (2002), pp. 35–51; Baillien et al. “Job Autonomy and Workload as Anteced- ents of Workplace Bul- lying”; and Einarsen, S.S.; B. Matthisen; and L.J. Hauge. “Bullying and Harassment at Work. In The Oxford Handbook of Person- nel Psychology, ed. S. Cartwright and C.L. Cooper. London: Sage, 2009, pp. 464–95.
2.60 Ibid.
2.61 PBS. “Isolated Incidents?” Online Newshour, April 26, 1996, http://www .pbs.org/newshour/ bb/-business/april96/ mitsubishi_4-26.html.
2.62 Sackett, P.R. “The Structure of Coun- terproductive Work
Behaviors: Dimension- ality and Performance with Facets of Job Performance.” Interna- tional Journal of Selec- tion and Assessment 10 (2002), pp. 5–11.
2.63 Foulk, T.; A. Woolum; and A. Erez. “Catch- ing Rudeness Is Like Catching a Cold: The Contagion Effects of Low-Intensity Negative Behaviors.” Journal of Applied Psychology 100 (2016), pp. 50–67; Lee, K.Y.; E. Kim; D.P. Bhave; and M.K. Duffy. “Why Victims of Undermining at Work Become Perpetrators of Undermining: An Inte- grated Model.” Journal of Applied Psychology 100 (2016), pp. 915–24; Rosen, C.C.; J. Koop- man; A.S. Gabriel; and R.E. Johnson. “Why Strikes Back? A Daily Investigation of When and Why Incivility Begets Incivility.” Journal of Applied Psy- chology 101 (2016), pp. 1620–34.
2.64 Ferris, D.L.; M. Yan; V.K.G. Lim; Y. Chen; and S. Fatimah. “An Approach-Avoidance Framework of Work- place Aggression.” Academy of Manage- ment Journal 59 (2016), pp. 1777–800; Lian, H.; D.L. Ferris; R. Morrison; and D.J. Brown. “Blame it on the Supervisor or the Subordinate? Recipro- cal Relations Between Abusive Supervision and Organizational
Deviance.” Journal of Applied Psychology 99 (2014), pp. 651–64; and Liang, L.H.; H. Lian; D.J. Brown; D.L. Ferris; S. Hanig; and L.M. Keeping. “Why Are Abusive Supervi- sors Abusive? A Dual- System Self-Control Model.” Academy of Management Journal 59 (2016), pp. 13–85.
2.65 Frazier, M.L., and W.M. Bowler. “Voice Climate, Supervisor Undermining, and Work Outcomes: A Group-Level Exami- nation.” Journal of Management (41) 2015, pp. 841–63.
2.66 Sackett, P.R., and C.J. DeVore. “Counter- productive Behaviors at Work.” In Handbook of Industrial, Work, and Organizational Psychology, Vol. 1, ed. N. Anderson; D.S. Ones; H.K. Sinangil; and C. Viswesvaran. Thousand Oaks, CA: Sage, 2001, pp. 145–51.
2.67 Drucker, P.F. “The Age of Social Transforma- tion.” The Atlantic Monthly 274 (1994), pp. 53–80.
2.68 U.S. Department of Labor, Bureau of Labor Statistics. “Tomorrow’s Jobs” (n.d.), http:// stats.bls.gov/oco/ oco2003.htm.
2.69 Allen, D. Getting Things Done. New York: Penguin Books, 2001.
2.70 U.S. Census Bureau. “Welcome to the
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Service Annual Sur- vey,” March 30, 2009, http://www.census .gov/econ/www/ servmenu.html.
2.71 Hecker, D. “Occupa- tional Employment Projections to 2012.” Monthly Labor Review 127 (2004), pp. 80–105, http://www .proquest.com.
2.72 Green, H. “How Amazon Aims to Keep You Clicking.” Business- Week, March 2, 2009, pp. 34–40.
2.73 Ibid.
2.74 McGregor, J. “Behind the List.” BusinessWeek, March 2, 2009, p. 32.
2.75 DeNisi, A.S., and K.R. Murphy. “Performance Appraisal and Performance Management: 100 Years of Progress?” Journal of Applied Psychology (2017), pp. 1–13.
2.76 Drucker, P.F. The Practice of Management. New York: Harper and Brothers, 1954.
2.77 Shaw, D.G.; C.E. Schneier; and R.W. Beatty. “Managing Performance with a Behaviourally Based Appraisal System.” In Applying Psychology in Business: The Handbook for Managers and Human Resource Professionals, ed. J.W Jones; B.D. Steffy; and D.W. Bray. Lexington, MA: Lexington Books, 2001, pp. 314–25.
2.78 Pulakos, E.D. “Behav- ioral Performance Measures.” In Applying Psychology in Business: The Handbook for Managers and Human Resource Professionals, ed. J.W. Jones; B.D. Steffy; and D.W. Bray. Lexington, MA: Lexington Books, 2001, pp. 307–13.
2.79 “Fortune Selects Henry Ford Businessman of the Century,” Novem- ber 1, 1999, http:// www.timewarner.com/ corp/print/0,20858, 667526,00.html.
2.80 Welch, J.F. Jr. Jack, “Straight from the Gut,” Warner Books, New York, 2001, p. 158.
2.81 Ibid.
2.82 Johnson, G. “Forced Ranking: The Good, the Bad, and the Alternative.” Training Magazine, May 2004, pp. 24–34.
2.83 M. Nisen. “How Mil- lennials Forced GE to Scrap Performance Reviews.” The Atlantic, August 18, 2015, https://www.the atlantic.com/politics/ archive/2015/08/ how-millennials- forced-ge-to-scrap- performance- reviews/432585/.
2.84 McGregor, J. “Job Review in 140 Keystrokes: Social Networking-Style Systems Lighten up the Dreaded Performance Evaluation.” Business- Week, March 29, 2009, p. 58.
2.85 Ibid.
2.86 Ibid.
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3
LEARNING GOALS
3.1 What is organizational commitment? What is withdrawal behavior? How are the two connected? 3.2 What are the three types of organizational commitment, and how do they differ? 3.3 What are the four primary responses to negative events at work? 3.4 What are some examples of psychological withdrawal? Of physical withdrawal? How do the different
forms of withdrawal relate to each other?
3.5 What workplace trends are affecting organizational commitment in today’s organizations? 3.6 How can organizations foster a sense of commitment among employees?
After reading this chapter, you should be able to answer the following questions:
Organizational Commitment
INDIVIDUAL OUTCOMES
INDIVIDUAL MECHANISMS
INDIVIDUAL CHARACTERISTICS
GROUP MECHANISMS
ORGANIZATIONAL MECHANISMS
Organizational Commitment
Job Performance
Organizational Culture
Organizational Structure
Leadership: Styles &
Behaviors
Leadership: Power &
Negotiation
Teams: Processes &
Communication
Teams: Characteristics &
Diversity
Ability
Personality & Cultural Values
Job Satisfaction
Stress
Motivation
Trust, Justice, & Ethics
Learning & Decision Making
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W hat’s your sense of the typical career path at a Big Four accounting firm? Put in five or so good years, then step away from the grind of travel and hours
for something more slow-paced? PwC, the New York–based firm with 41,531 U.S. employees (and 157,955 employees worldwide) is fighting to make that career path a bit less typ- ical. The firm, which was recently named one of Fortune’s 100 Best Companies to Work For, is taking a number of steps to build a sense of loyalty among the rank and file.
Some of those steps are focused on making PwC a fun place to work. For example, interns who receive offers of full-time employment get to compete in games and chal- lenges at Disney World. PwC also uses sporting events and leagues to promote camaraderie. Nearly 400 employees— including interns and partners—participated in its softball tournament in Denver. Other steps are focused on making PwC a convenient place to work. For example, the com- pany offers a number of desirable perks, including tele- commuting, job sharing, compressed work weeks, paid parental leave, and paid time off for volunteering. Indeed, PwC recently announced that it would begin contributing
$1,200 a year to employees’ student loans. The founder of a startup helping PwC administer this new perk views it as a “tremendous differentiator” when PwC recruits on college campuses.
Helping hires pay off their student loans should be par- ticularly valued by Millennials, who typically carry a signifi- cant amount of debt from college. PwC hopes that’s the case, as it’s struggled to build loyalty on the part of Millen- nials in recent years. Whereas new hires typically stayed for multiple years to take advantage of training and develop- ment opportunities, more and more Millennials have been quitting after a year or two. “Our first reaction was to ques- tion ourselves,” says Anne Donovan, a manager in PwC’s human capital group. “We thought we must be hiring the wrong people.” That sense changed when PwC commis- sioned a large-scale study of Millennial attitudes, to find out what drove loyalty for that age group. What did that study show? Summarizes Donovan, “Millennials are driven by how well their team works together, how supported and appreci- ated they feel, and how much possibility they have. They’re all about how it feels.”
PWC
©Chris Batson/Alamy
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O R G A N I Z AT I O N A L C O M M I T M E N T
Organizational commitment sits side-by-side with job performance in our integrative model of organizational behavior, reflecting one of the starting points for our journey through the concepts covered in this course. Why begin with a discussion of organizational commitment? Because it’s not enough to have talented employees who perform their jobs well. You also need to be able to hang on to those employees for long periods of time so that the organization can benefit from their efforts. Put yourself in the shoes of a business owner. Let’s say you spent a great deal of time recruiting a graduate from the local university, selling her on your business, and making sure that she was as qualified as you initially believed her to be. Now assume that, once hired, you took a personal interest in that employee, showing her the ropes and acting as mentor and instructor. Then, just as the company was set to improve as a result of that employee’s presence, she leaves to go to work for a competitor. As an employer, can you think of many things more depressing than that scenario?
Unfortunately, that scenario is not far-fetched. The U.S. Bureau of Labor Statistics estimates that the average American will have 10.8 jobs between the ages of 18 and 42.1 That projection is based in part on an overall turnover (or “attrition”) rate of around 16 percent across all industries. Such statistics are nerve-wracking to employers because turnover can be quite expensive. Esti- mates suggest that turnover costs between 90 percent and 200 percent of an employee’s annual salary.2 Why so expensive? Those estimates include various costs, including the administrative costs involved in the separation, recruitment expenses, screening costs, and training and orienta- tion expenses for the new hire. They also include “hidden costs” due to decreased morale, lost organizational knowledge, and lost productivity.
Organizational commitment is defined as the desire on the part of an employee to remain a mem- ber of the organization.3 Organizational commitment influences whether an employee stays a mem- ber of the organization (is retained) or leaves to pursue another job (turns over). Our attention in this chapter is focused primarily on reducing voluntary turnover by keeping the employees whom the organization wants to keep, though we will touch on involuntary turnover in a discussion of lay- offs and downsizing. Employees who are not committed to their organizations engage in withdrawal behavior, defined as a set of actions that employees perform to avoid the work situation—behaviors that may eventually culminate in quitting the organization.4 The relationship between commitment and withdrawal is illustrated in Figure 3-1. Some employees may exhibit much more commitment than withdrawal, finding themselves on the green end of the continuum. Other employees exhibit much more withdrawal than commitment, finding themselves on the red end of the continuum. The sections that follow review both commitment and withdrawal in more detail.
3.1 What is organizational commitment? What is with- drawal behavior? How are the two connected?
FIGURE 3-1 Organizational Commitment and Employee Withdrawal
Withdrawal Behavior
Low High
Organizational Commitment
High Low
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W H AT D O E S I T M E A N TO B E “ C O M M I T T E D ” ?
One key to understanding organizational commitment is to understand where it comes from. In other words, what creates a desire to remain a member of an organization? To explore this ques- tion, consider the following scenario: You’ve been working full-time for your employer for around five years. The company gave you your start in the business, and you’ve enjoyed your time there. Your salary is competitive enough that you were able to purchase a home in a good school system, which is important because you have one young child and another on the way. Now assume that a competing firm contacted you while you were attending a conference and offered you a similar position in its company. What kinds of things might you think about? If you created a list to orga- nize your thoughts, what might that list look like?
T Y P E S O F C O M M I T M E N T One potential list is shown in Table 3-1. The left-hand column reflects some emotional reasons for staying with the current organization, including feelings about friendships, the atmosphere or culture of the company, and a sense of enjoyment when completing job duties. These sorts of emotional rea- sons create affective commitment, defined as a desire to remain a member of an organization due to an emotional attachment to, and involvement with, that organization.5 Put simply, you stay because you want to. The middle column reflects some cost-based reasons for staying, including issues of sal- ary, benefits, and promotions, as well as concerns about uprooting a family. These sorts of reasons create continuance commitment, defined as a desire to remain a member of an organization because of an awareness of the costs associated with leaving it.6 In other words, you stay because you need to. The right-hand column reflects some obligation-based reasons for staying with the current organiza- tion, including a sense that a debt is owed to a boss, a colleague, or the larger company. These sorts of reasons create normative commitment, defined as a desire to remain a member of an organization due to a feeling of obligation.7 In this case, you stay because you ought to.
3.2 What are the three types of organizational commit- ment, and how do they differ?
TABLE 3-1 The Three Types of Organizational Commitment
What Makes Someone Stay with His/Her Current Organization?
AFFECTIVE COMMITMENT (EMOTION-BASED)
CONTINUANCE COMMITMENT (COST-BASED)
NORMATIVE COMMITMENT (OBLIGATION-BASED)
Some of my best friends work in my office . . . I’d miss them if I left.
I’m due for a promotion soon . . . will I advance as quickly at the new company?
My boss has invested so much time in me, mentoring me, training me, showing me the ropes.
I really like the atmosphere at my current job . . . it’s fun and relaxed.
My salary and benefits get us a nice house in our town . . . the cost of living is higher in this new area.
My organization gave me my start . . . they hired me when others thought I wasn’t qualified.
My current job duties are very rewarding . . . I enjoy coming to work each morning.
The school system is good here, my spouse has a good job . . . we’ve really put down roots where we are.
My employer has helped me out of a jam on a number of occasions . . . how could I leave now?
Staying because you want to.
Staying because you need to.
Staying because you ought to.
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FIGURE 3-2 Drivers of Overall Organizational Commitment
Normative Commitment
A�ective Commitment
Continuance Commitment
OVERALL ORGANIZATIONAL
COMMITMENT
Felt in Reference to One's:
Company
Top Management
Department
Manager
Work Team
Specific Coworkers
As shown in Figure 3-2, the three types of organizational commitment combine to create an overall sense of psychological attachment to the company. Of course, different people may weigh the three types differently. Some employees may be very ratio- nal and cautious by nature, focusing primarily on continuance commit- ment when evaluating their overall desire to stay. Other employees may be more emotional and intuitive by nature, going more on “feel” than a calculated assessment of costs and benefits. The importance of the three commitment types also may vary over
the course of a career. For example, you might prioritize affective reasons early in your work life before shifting your attention to continuance reasons as you start a family or become more established in a community. Regardless of how the three types are prioritized, however, they offer an important insight into why someone might be committed and what an organization can do to make employees feel more committed.
Figure 3-2 also shows that organizational commitment depends on more than just “the orga- nization.” That is, people aren’t always committed to companies; they’re also committed to the
Committed employees often have strong positive
feelings about one particu- lar aspect of their job, such
as their colleagues, their manager, or the particular
work they do.
©Liquidlibrary/Getty Images
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top management that leads the firm at a given time, the department in which they work, the man- ager who directly supervises them, or the specific team or coworkers with whom they work most closely.8 We use the term focus of commitment to refer to the various people, places, and things that can inspire a desire to remain a member of an organization. For example, you might choose to stay with your current employer because you’re emotionally attached to your work team, worry about the costs associated with losing your company’s salary and benefits package, and feel a sense of obligation to your current manager. If so, your desire to remain cuts across multiple types of commitment (affective, continuance, and normative) and multiple foci (or focuses) of commit- ment (work team, company, manager). Now that you’re familiar with the drivers of commitment in a general sense, let’s go into more depth about each type.
AFFECTIVE COMMITMENT One way to understand the differences among the three types of commitment is to ask yourself what you would feel if you left the organization. Consider the rea- sons listed in the left-hand column of Table 3-1. What would you feel if, even after taking all those reasons into account, you decided to leave your organization to join another one? Answer: You’d feel a sense of sadness. Employees who feel a sense of affective commitment identify with the orga- nization, accept that organization’s goals and values, and are more willing to exert extra effort on behalf of the organization.9 By identifying with the organization, they come to view organizational membership as important to their sense of self.10 Is affective commitment something that you feel for your current employer or have felt for a past employer? Check the OB Assessments feature to find out.
It’s safe to say that if managers could choose which type of commitment they’d like to instill in their employees, they’d choose affective commitment. Moreover, when a manager looks at an employee and says “She’s committed” or “He’s loyal,” that manager usually is referring to a behav- ioral expression of affective commitment.11 For example, employees who are affectively committed to their employer tend to engage in more interpersonal and organizational citizenship behaviors, such as helping, sportsmanship, and boosterism. One meta-analysis of 22 studies with more than 6,000 participants revealed a moderately strong correlation between affective commitment and citizenship behavior.12 (Recall that a meta-analysis averages together results from multiple studies investigating the same relationship.) Such results suggest that emotionally committed employees express that commitment by “going the extra mile” whenever they can.
Because affective commitment reflects an emotional bond to the organization, it’s only natu- ral that the emotional bonds among coworkers influence it.13 We can, therefore, gain a better understanding of affective commitment if we take a closer look at the bonds that tie employees together. Assume you were given a sheet with the names of all the employees in your department or members of your class. Then assume you were asked to rate the frequency with which you com- municated with each of those people, as well as the emotional depth of those communications. Those ratings could be used to create a “social network” diagram that summarizes the bonds among employees. Figure 3-3 provides a sample of such a diagram. The lines connecting the 10 members of the work unit represent the communication bonds that tie each of them together, with thicker lines representing more frequent communication with more emotional depth. The diagram illustrates that some employees are “nodes,” with several direct connections to other employees, whereas others remain at the fringe of the network.
The erosion model suggests that employees with fewer bonds will be most likely to quit the orga- nization.14 If you look at Figure 3-3, who’s most at risk for turning over? That’s right—the employee who has only one bond with someone else (and a relatively weak bond at that). From an affective commitment perspective, that employee is likely to feel less emotional attachment to work col- leagues, which makes it easier to decide to leave the organization. Social network diagrams can also help us understand another explanation for turnover. The social influence model suggests that employees who have direct linkages with “leavers” will themselves become more likely to leave.15 In this way, reductions in affective commitment become contagious, spreading like a dis- ease across the work unit. Think about the damage that would be caused if the central figure in the network (the one who has linkages to five other people) became unhappy with the organization.
More and more companies are beginning to understand the value in helping employees con- nect. SAS, the Cary, North Carolina–based software company, provides a number of perks that
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bring employees together.16 Those include a billiard hall; intramural tennis, baseball, and volley- ball; pool and fitness facilities; and even a hair salon. Sabre Holdings, the Southlake, Texas– based owner of Travelocity, created an internal social network system called Sabre Town.17 More company-focused than Facebook, Sabre Town includes profiles of employee skills, experience, and customer contacts, along with groups built around common personal interests. One such group is Mom2Mom, which allows employees to connect and converse about day care centers, pediatricians, and work–family balance issues.
CONTINUANCE COMMITMENT Now consider the reasons for staying listed in the middle column of Table 3-1. What would you feel if, even after taking all those reasons into account, you
OB ASSESSMENTS AFFECTIVE COMMITMENT How emotionally attached are you to your employer? This assessment is designed to measure affective commitment—the feeling that you want to stay with your current organization. Think about your current job or the last job that you held (even if it was a part-time or summer job). Answer each question using the response scale provided. Then subtract your answers to the bold- faced questions from 6, with the difference being your new answers for those questions. For exam- ple, if your original answer for question 3 was “4,” your new answer is “2” (6 − 4). Then sum your answers for the six questions. (Instructors: Assessments on continuance commitment, norma- tive commitment, and embeddedness can be found in the PowerPoints in the Connect Library’s Instructor Resources and in the Connect assignments for this chapter).
SCORING AND INTERPRETATION If your scores sum up to 20 or above, you feel a strong sense of affective commitment to your cur- rent or past employer, which means that you feel an emotional attachment to the company or the people within it. This means that you would leave voluntarily. If your scores sum up to less than 20, you have a weaker sense of affective commitment to your current or past employer. This result is especially likely if you responded to the questions in reference to a part-time or summer job, as there might not have been enough time to develop an emotional bond.
Source: Adapted from N.J. Allen and J.P. Meyer, “The Measurement and Antecedents of Affective, Continuance, and Normative Commitment to the Organization,” Journal of Occupational Psychology 63 (1990), pp. 1–18.
1 STRONGLY DISAGREE
2 DISAGREE
3 NEUTRAL
4 AGREE
5 STRONGLY
AGREE
1. I would be very happy to spend the rest of my career in this organization.
2. I really feel as if this organization’s problems are my own.
3. I do not feel like “part of the family” at my organization.
4. I do not feel “emotionally attached” to this organization.
5. This organization has a great deal of personal meaning for me.
6. I do not feel a strong sense of belonging to my organization.
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decided to leave your organization to join another one? Answer: You’d feel a sense of anxiety. Con- tinuance commitment exists when there’s a profit associated with staying and a cost associated with leaving,18 with high continuance commitment making it difficult to change organizations because of the steep penalties associated with the switch.19 One factor that increases continuance commitment is the total amount of investment (in terms of time, effort, energy, etc.) employees have made in mastering their work roles or fulfilling their organizational duties.20 Picture a sce- nario in which you’ve worked extremely hard for a number of years to finally master the “ins and outs” of working at a particular organization, and now you’re beginning to enjoy the fruits of that labor in terms of financial rewards and better work assignments. That effort might be wasted if you moved to another organization (and had to start over on the learning curve).
Another factor that increases continuance commitment is a lack of employment alternatives.21 If an employee has nowhere else to go, the need to stay will be higher. Employment alternatives themselves depend on several factors, including economic conditions, the unemployment rate, and the marketability of a person’s skills and abilities.22 Of course, no one likes to feel “stuck” in a situation, so it may not be surprising that the behavioral benefits associated with affec- tive commitment don’t really occur with continuance com- mitment. There’s no statistical relationship between continu- ance commitment and citizen- ship behavior, for example, or any other aspects of job per- formance.23 Continuance com- mitment, therefore, tends to create more of a passive form of loyalty.
FIGURE 3-3 A Social Network Diagram
SAS, the Cary, North Carolina–based software company, offers a number of recreational perks to help employees stay con- nected to one another.©Charly Kurz/laif/New York Times/Redux Pictures
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It’s important to note that some of the reasons in the middle column of Table 3-1 center on personal or family issues. Continuance commitment focuses on personal and family issues more than the other two commitment types, because employees often need to stay for both work and nonwork reasons. One concept that demonstrates the work and nonwork forces that can bind us to our current employer is embeddedness, which summarizes employees’ links to their orga- nization and community, their sense of fit with their organization and community, and what they would have to sacrifice for a job change.24 As demonstrated in Table 3-2, embeddedness strengthens continuance commitment by providing more reasons employees need to stay in their current positions (and more sources of anxiety if they were to leave).25 Research suggests that embeddedness helps employees weather negative events that occur,26 and that it matters across cultures.27
Think about your current situation. If you’re a college student who is working part-time, you likely don’t feel very embedded. Your links to your job are probably only short term, and you may feel that the job is more routine than you’d like from a fit perspective. You probably also wouldn’t feel you were sacrificing much if you left the job. From a community perspective, you may be going to school in a different city or state than where you grew up, again resulting in few links, low perceived fit, or a lack of felt sacrifice. However, if you’re a full-time employee who is relatively established in your job and community, you may feel quite embedded in your current situation.28
Alcon Labs seems to understand the value of continuance commitment. The Fort Worth, Texas–based leader in eye care products enjoys a voluntary turnover rate of less than 2 percent.29 One likely reason for that low rate is the benefits package Alcon offers its employees. For example, Alcon offers a 401(k) retirement plan in which it matches 240 percent of what employees con- tribute, up to a total of 5 percent of total compensation. So, for example, if an employee invests $500 toward retirement in a given month, Alcon contributes $1,200. That policy more than dou- bles the most generous rates of other companies, allowing employees to build a comfortable “nest egg” for retirement more quickly. Clearly, employees would feel a bit anxious about giving up that benefit if a competitor came calling.
NORMATIVE COMMITMENT Now consider the reasons for staying listed in the right-hand column of Table 3-1. What would you feel if, even after taking all those reasons into account, you decided to leave your organization to join another one? Answer: You’d feel a sense of guilt.
TABLE 3-2 Embeddedness and Continuance Commitment
“Embedded” People Feel:
FACET FOR THE ORGANIZATION: FOR THE COMMUNITY:
Links • I’ve worked here for such a long time. • I’m serving on so many teams and
committees.
• Several close friends and family live nearby.
• My family’s roots are in this community.
Fit • My job utilizes my skills and talents well.
• I like the authority and responsibility I have at this company.
• The weather where I live is suitable for me.
• I think of the community where I live as home.
Sacrifice • The retirement benefits provided by the organization are excellent.
• I would sacrifice a lot if I left this job.
• People respect me a lot in my community.
• Leaving this community would be very hard.
Source: Adapted from T.R. Mitchell, B.C. Holtom, T.W. Lee, C.J. Sablynski, and M. Erez, “Why People Stay: Using Job Embeddedness to Predict Voluntary Turnover,” Academy of Management Journal 44 (2001), pp. 1102–21.
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Normative commitment exists when there is a sense that staying is the “right” or “moral” thing to do.30 The sense that people should stay with their current employers may result from personal work philosophies or more general codes of right and wrong developed over the course of their lives. They may also be dictated by early experiences within the company, if employees are social- ized to believe that long-term loyalty is the norm rather than the exception.31
Aside from personal work philosophies or organizational socialization, there seem to be two ways to build a sense of obligation-based commitment among employees. One way is to create a feeling that employees are in the organization’s debt—that they owe something to the organiza- tion. For example, an organization may spend a great deal of money training and developing an employee. In recognition of that investment, the employee may feel obligated to “repay” the orga- nization with several more years of loyal service.32 Think about how you’d feel if your employer paid your tuition, allowing you to further your education, while also providing you with training and developmental job assignments that increased your skills. Wouldn’t you feel a bit guilty if you took the first job opportunity that came your way?
Another possible way to build an obligation-based sense of commitment is by becoming a par- ticularly charitable organization. For example, many companies encourage employees to engage in volunteering—the giving of time or skills during a planned activity for a nonprofit or chari- table group.33 Such companies may encourage volunteering on employees’ own personal time, or may create “corporate volunteering” programs where employees can give time or skills during the workday. Are such efforts a distraction for employees that interferes with their jobs? Quite the contrary, as research suggests that employees who volunteer are actually more engaged in their work than employees who don’t. Moreover, employees who volunteer are given “credit” for those activities by their colleagues.34 For the organization, charitable activities can provide good public relations, potentially generating goodwill for its products and services and helping attract new recruits.35 They can also help existing employees feel better about the organization, creating a deeper sense of normative commitment. Those benefits may be particularly relevant with younger employees, as evidence indicates that recent generations are somewhat more charitably minded than previous ones. In support of that view, a growing number of MBA graduates are joining socially conscious online networks, such as Netimpact.org (see Chapter 7 on trust, justice, and ethics for more discussion of such issues).36
Comcast recognizes the value of normative commitment. For around a decade, the Philadelphia– based media company has organized Comcast Cares Day.37 Originally, the day consisted of 50 employees working at a local charity event. One recent year, 60,500 employees, their family mem- bers, and volunteers worked with local and national nonprofits on a variety of activities, from planting gardens to cleaning up riverbanks. The head of Comcast’s community involvement pro- gram contends that Comcast Cares Day was not created to help attract and maintain employ- ees. Still, she admits that it’s been a positive unintended consequence, especially for younger employees.
W I T H D R AWA L B E H AV I O R As noted earlier, one study suggested that 60 percent of employees plan to look for another job once the economy improves.38 Organizational commitment is, therefore, a vital concern, given that organizations will need to be fully staffed when business picks back up and industries become even more competitive. Indeed, organizational commitment is at its most important when employ- ees are at their most needed. To paraphrase the old saying, “When the going gets tough, the organization doesn’t want you to get going.” In tough times, organizations need their employees to demonstrate loyalty, not “get going” right out the door. Of course, it’s those same tough times that put an employee’s loyalty and allegiance to the test.
Consider the following scenario: You’ve been working at your company for three years and served on a key product development team for the past several months. Unfortunately, the team has been struggling of late. In an effort to enhance the team’s performance, the organization has added a new member to the group. This member has a solid history of product development but is, by all accounts, a horrible person to work with. You can easily see the employee’s talent
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but find yourself hating every moment spent in the employee’s presence. This situation is particu- larly distressing because the team won’t finish its work for another nine months, at the earliest. What would you do in this situation?
Research on reactions to negative work events suggests that you might respond in one of four general ways.39 First, you might attempt to remove yourself from the situation, either by being absent from work more frequently or by voluntarily leaving the organization. This removal is termed exit, defined as an active, destructive response by which an individual either ends or restricts organizational membership.40 Second, you might attempt to change the circumstances by meeting with the new team member to attempt to work out the situation. This action is termed voice, defined as an active, constructive response in which individuals attempt to improve the situ- ation (see Chapter 2 on job performance for more discussion of such issues).41 Third, you might just “grin and bear it,” maintaining your effort level despite your unhappiness. This response is termed loyalty, defined as a passive, constructive response that maintains public support for the situation while the individual privately hopes for improvement.42 Fourth, you might just go through the motions, allowing your performance to deteriorate slowly as you mentally “check out.” This reaction is termed neglect, defined as a passive, destructive response in which interest and effort in the job decline.43 Sometimes neglect can be even more costly than exit because it’s not as readily noticed. Employees may neglect their duties for months (or even years) before their bosses catch on to their poor behaviors.
Taken together, the exit–voice–loyalty–neglect framework captures most of the possible responses to a negative work event. Where does organizational commitment fit in? Organizational commitment should decrease the likelihood that an individual will respond to a negative work event with exit or neglect (the two destructive responses). At the same time, organizational com- mitment should increase the likelihood that the negative work event will prompt voice or loyalty (the two constructive responses). Consistent with that logic, research indeed suggests that orga- nizational commitment increases the likelihood of voice and loyalty while decreasing the likeli- hood of exit and neglect.44 To see two of the exit–voice–loyalty–neglect options in action, see our OB on Screen feature.
If we consider employees’ task performance levels together with their organizational commit- ment levels, we can gain an even clearer picture of how people might respond to negative work events. Consider Table 3-3, which depicts combinations of high and low levels of organizational commitment and task performance. Stars possess high commitment and high performance and are held up as role models for other employees. Stars likely respond to negative events with voice because they have the desire to improve the status quo and the credibility needed to inspire change.45 It’s pretty easy to spot the stars in a given unit, and you can probably think about your current or past job experiences and identify the employees who would fit that description. Citizens possess high commitment and low task performance but perform many of the voluntary “extra- role” activities that are needed to make the organization function smoothly.46 Citizens are likely to respond to negative events with loyalty because they may lack the credibility needed to inspire change but do possess the desire to remain a member of the organization. You can spot citizens by looking for the people who do the little things—showing around new employees, picking up birthday cakes, ordering new supplies when needed, and so forth.
Lone wolves possess low levels of organizational commitment but high levels of task perfor- mance and are motivated to achieve work goals for themselves, not necessarily for their com- pany.47 They are likely to respond to negative events with exit. Although their performance would give them the credibility needed to inspire change, their lack of attachment prevents them from using that credibility constructively. Instead, they rely on their performance levels to make them marketable to their next employer. To spot lone wolves, look for the talented employees who never seem to want to get involved in important decisions about the future of the company. Finally, apathetics possess low levels of both organizational commitment and task performance and merely exert the minimum level of effort needed to keep their jobs.48 Apathetics should respond to negative events with neglect because they lack the performance needed to be marketable and the commitment needed to engage in acts of citizenship.
It’s clear from this discussion that exit and neglect represent the f lip side of organizational commitment: withdrawal behavior. How common is withdrawal behavior within organizations?
3.3 What are the four primary responses to negative events at work?
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OB ON SCREEN
©Open Road Films (II)/Photofest
CHEF
Well why don’t you cook the menu without a chef and we see how it goes tonight?
With those words, Chef Carl Casper (Jon Favreau) quits his job in Chef (Dir. Jon Favreau, Aldamisa Entertainment, 2014). Carl is just a few days removed from receiving a scathing review from Ramsey Michel (Oliver Platt), the most respected food critic in Los Angeles. And now he’s taken to Twitter, challenging Michel to give him a second try, this time with an all new menu. As Carl explains to the hostess, Molly (Scarlett Johansson), “We’re not pushing specials today—the whole menu is special.” When Molly sees the excitement in Carl’s eyes, he goes on, “I’m excited. I’m finally happy . . . I’m happy, OK? Am I allowed to be happy, at work?”
Unfortunately for Carl, the restaurant’s owner—Riva (Dustin Hoffman)—doesn’t want that spe- cial menu. Instead, he wants the unusually large crowd to experience the kind of entrées they can expect week in and week out. Riva walks back into the kitchen to protest, noting, “So now sud- denly you’re gonna be an artist. Well, be an artist on your own time.” Carl argues that the crowd is there to see him face off against the critic and to eat his food. Corrects Riva, “It’s my food because it’s my restaurant. I pay for the glasses, I pay for the napkins, I pay for the spoons . . . ”
Given an ultimatum, Carl chooses to walk out of the kitchen, and out of Riva’s employ. He was deeply committed to his craft—to being a chef. Put differently, he had high occupational commit- ment. But he was no longer committed to Riva. Moreover, given his talent, Carl assumed he had other options—other restaurants that would hire him. Thus, his exit. The same was not true for Carl’s sous-chef, Tony. Carl assumes Tony will follow him out of the kitchen and on to whatever comes next. But Tony is less established in his career—he needs to remain loyal for reasons that Carl doesn’t. Where does Carl go next? Here’s a hint: His next kitchen is smaller.
Quite common, it turns out. One study clocked employees’ on-the-job behaviors over a two- year period and found that only about 51 percent of their time was actually spent working! The other 49 percent was lost to late starts, early departures, long coffee breaks, personal matters, and other forms of withdrawal.49 As a manager, wouldn’t you like to feel like there was more than a coin-f lip’s chance that your employees were actually working during the course of a given day?
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TABLE 3-3 Four Types of Employees
TASK PERFORMANCE
HIGH LOW
Organizational Commitment
HIGH Stars Citizens
LOW Lone wolves Apathetics
Source: Adapted from R.W. Griffeth, S. Gaertner, and J.K. Sager, “Taxonomic Model of Withdrawal Behaviors: The Adap- tive Response Model,” Human Resource Management Review 9 (1999), pp. 577–90.
As shown in Figure 3-4, withdrawal comes in two forms: psychological (or neglect) and physical (or exit). Psychological withdrawal consists of actions that provide a mental escape from the work environment.50 Some business articles refer to psychological withdrawal as “warm-chair attrition,” meaning that employees have essentially been lost even though their chairs remain occupied.51 This withdrawal form comes in a number of shapes and sizes.52 The least serious is daydreaming, when employees appear to be working but are actually distracted by random thoughts or concerns. Socializing refers to the verbal chatting about nonwork topics that goes on in cubicles and offices or at the mailbox or vending machines. Looking busy indicates an intentional desire on the part of employees to look like they’re working, even when not performing work tasks. Sometimes, employees decide to reorganize their desks or go for a stroll around the building, even though they have nowhere to go. (Those who are very good at managing impressions do such things very briskly and with a focused look on their faces!) When employees engage in moonlighting, they use work time and resources to complete something other than their job duties, such as assignments for another job.
Perhaps the most widespread form of psychological withdrawal among white-collar employees is cyberloafing—using Internet, e-mail, and instant messaging access for their personal enjoyment rather than work duties.53 Some estimates suggest that typical cubicle dwellers stop what they’re doing about once every three minutes to send e-mail, check Facebook or Twitter, surf over to You- Tube, and so forth.54 Such distractions consume as much as 28 percent of employees’ workdays and cost some $650 billion a year in lost productivity. Sports fans seem particularly vulnerable. Estimates suggest that Fantasy Football league transactions consume as much as $1.5 billion in productivity during a typical season.55 The spring isn’t much better, as estimates suggest that employers lose $1.2 billion as employees watch NCAA tournament games online.56 Some employ- ees view cyberloafing as a way of “balancing the scales” when it comes to personal versus work time. For example, one participant in a cyberloafing study noted, “It is alright for me to use the Internet for personal reasons at work. After all, I do work overtime without receiving extra pay from my employer.”57 Although such views may seem quite reasonable, other employees view cyberloafing as a means to retaliate for negative work events. One participant in the same study noted, “My boss is not the appreciative kind; I take what I can whenever I can. Surfing the net is my way of hitting back.”
Physical withdrawal consists of actions that provide a physical escape, whether short term or long term, from the work environment.58 Physical withdrawal also comes in a number of shapes and sizes. Tardiness reflects the tendency to arrive at work late (or leave work early).59 Of course, tardiness can sometimes be unavoidable, as when employees have car trouble or must fight through bad weather, but it often represents a calculated desire to spend less time at work.60 Long breaks involve longer-than-normal lunches, soda breaks, coffee breaks, and so forth that provide a physical escape from work. Sometimes, long breaks stretch into missing meetings, which means employees neglect important work functions while away from the office. As a manager, you’d like to be sure that employees who leave for lunch are actually going to come back, but sometimes that’s not a safe bet!
Absenteeism occurs when employees miss an entire day of work.61 Of course, people stay home from work for a variety of reasons, including illness and family emergencies. There’s also a rhythm
3.4 What are some examples of psychological with- drawal? Of physical withdrawal? How do the different forms of with- drawal relate to each other?
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to absenteeism. For example, employees are more likely to be absent on Mondays or Fridays. Moreover, streaks of good attendance create a sort of pressure to be absent, as personal respon- sibilities build until a day at home becomes irresistible.62 That type of absence can sometimes be functional because people may return to work with their “batteries recharged.”63 Group and departmental norms also affect absenteeism by signaling whether an employee can get away with missing a day here or there without being noticed.64
One survey suggests that 57 percent of U.S. employees take sick days when they’re not actu- ally sick, a trend that has some companies going to extreme measures.65 IKEA, the Sweden-based furniture maker, recently made headlines for spying on its French employees for various reasons— including checking on their sick leave use.66 In the United States, private investigation firms charge around $75 per hour to send investigators in search of employees who may be playing hooky. Rick Ray- mond, an investigator in Florida, once followed a supposedly sick employee to Universal Studios.67 The employee rode three roller coasters that take automatic pictures at the sharpest turns. Raymond bought all three, which conveniently included time and date stamps. When the employee later claimed that the photos weren’t her, Raymond responded by playing back video of her volunteering at an animal
FIGURE 3-4 Psychological and Physical Withdrawal
Psychological Withdrawal
(NEGLECT)
WITHDRAWAL BEHAVIOR
Physical Withdrawal
(EXIT)
Daydreaming Quitting
Absenteeism
Missing Meetings
Long Breaks
TardinessCyberloafing
Moonlighting
Looking Busy
Socializing
In an effort to curb absen- teeism, some companies have turned to private investigators to try to catch “sick” employees who are playing hooky.
©Colin Anderson/Getty Images
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show in the park! The news isn’t all bad for would-be work-skippers. Some of the same firms that track employees provide training on how to elude the boss’s surveillance attempts.
Finally, the most serious form of physical withdrawal is quitting—voluntarily leaving the organi- zation. As with the other forms of withdrawal, employees can choose to “turn over” for a variety of reasons. The most frequent reasons include leaving for more money or a better career oppor- tunity; dissatisfaction with supervision, working conditions, or working schedule; family factors; and health.68 Note that many of those reasons reflect avoidable turnover, meaning that the orga- nization could have done something to keep the employee, perhaps by offering more money, more frequent promotions, or a better work situation. Family factors and health, in contrast, usually reflect unavoidable turnover that doesn’t necessarily signal a lack of commitment on the part of employees.
Regardless of their reasons, some employees choose to quit after engaging in a very thorough, careful, and reasoned analysis. Typically some sort of “shock,” whether it be a critical job change, a negative work experience, or an unsolicited job offer, jars employees enough that it triggers the thought of quitting in them.69 Once the idea of quitting has occurred to them, employees begin searching for other places to work, compare those alternatives to their current job, and—if the comparisons seem favorable—quit.70 This process may take days, weeks, or even months as employees grapple with the decision. In other cases, though, a shock may result in an impulsive, knee-jerk decision to quit, with little or no thought given to alternative jobs (or how those jobs compare to the current one).71 Of course, sometimes a shock never occurs. Instead, an employee decides to quit as a result of a slow but steady decrease in happiness until a “straw breaks the camel’s back” and voluntary turnover results.
Figure 3-4 shows 10 different behaviors that employees can perform to psychologically or phys- ically escape from a negative work environment. A key question remains though: “How do all those behaviors relate to one another?” Consider the following testimonials from uncommitted (and admittedly fictional) employees:
• “I can’t stand my job, so I do what I can to get by. Sometimes I’m absent, sometimes I socialize, sometimes I come in late. There’s no real rhyme or reason to it; I just do whatever seems practi- cal at the time.”
• “I can’t handle being around my boss. I hate to miss work, so I do what’s needed to avoid being absent. I figure if I socialize a bit and spend some time surfing the Web, I don’t need to ever be absent. But if I couldn’t do those things, I’d definitely have to stay home . . . a lot.”
• “I just don’t have any respect for my employer anymore. In the beginning, I’d daydream a bit during work or socialize with my colleagues. As time went on, I began coming in late or taking a long lunch. Lately I’ve been staying home altogether, and I’m starting to think I should just quit my job and go somewhere else.”
Each of these statements sounds like something that an uncommitted employee might say. However, each statement makes a different prediction about the relationships among the with- drawal behaviors in Figure 3-4. The first statement summarizes the independent forms model of withdrawal, which argues that the various withdrawal behaviors are uncorrelated with one another, occur for different reasons, and fulfill different needs on the part of employees.72 From this perspective, knowing that an employee cyberloafs tells you nothing about whether that employee is likely to be absent. The second statement summarizes the compensatory forms model of withdrawal, which argues that the various withdrawal behaviors negatively correlate with one another—that doing one means you’re less likely to do another. The idea is that any form of withdrawal can compensate for, or neutralize, a sense of dissatisfaction, which makes the other forms unnecessary. From this perspective, knowing that an employee cyberloafs tells you that the same employee probably isn’t going to be absent. The third statement summarizes the progression model of withdrawal, which argues that the various withdrawal behaviors are posi- tively correlated: The tendency to daydream or socialize leads to the tendency to come in late or take long breaks, which leads to the tendency to be absent or quit. From this perspective, know- ing that an employee cyberloafs tells you that the same employee is probably going to be absent in the near future.
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Which of the three models seems most logical to you? Although all three make some sense, the progression model has received the most scientific support.73 Studies tend to show that the withdrawal behaviors in Figure 3-4 are positively correlated with one another.74 Moreover, if you view the behaviors as a causal sequence moving from left (daydreaming) to right (quitting), the behaviors that are closest to each other in the sequence tend to be more highly correlated.75 For example, quitting is more closely related to absenteeism than to tardiness, because absenteeism is right next to it in the withdrawal progression. These results illustrate that withdrawal behaviors may begin with very minor actions but eventually can escalate to more serious actions that may harm the organization.
S U M M A RY: W H AT D O E S I T M E A N TO B E “C O M M I T T E D” ? So what does it mean to be a “committed” employee? As shown in Figure 3-5, it means a lot of different things. It means that employees have a strong desire to remain a member of the organiza- tion, maybe because they want to stay, need to stay, or feel they ought to stay. Regardless of the reasons for their attachment though, retaining these employees means stopping the progression of withdrawal that begins with psychological forms and then escalates to behavioral forms. Note that the negative sign (−) in Figure 3-5 illustrates that high levels of overall organizational commit- ment reduce the frequency of psychological and physical withdrawal. Note also that psychological withdrawal goes on to affect physical withdrawal, which represents the progressive nature of such behaviors.
As you move forward in this book, you’ll notice that every chapter includes a description of how that chapter’s topic relates to organizational commitment. For example, Chapter 4 on job sat- isfaction describes how employees’ satisfaction levels influence their organizational commitment. Chapter 7 on trust, justice, and ethics explains how employees’ trust in management influences their organizational commitment. Sometimes you’ll notice that a given chapter’s topic relates more strongly to organizational commitment than to job performance. Other times, however, the topic may relate similarly to commitment and performance, or even relate more strongly to performance. Regardless, such differences will help you see exactly why the various topics in this book are so important to managers.
T R E N D S T H AT A F F E C T C O M M I T M E N T
Now that we’ve described exactly what organizational commitment represents, it’s time to describe some of the trends that affect it in the contemporary workplace. Put simply, the composition of the workforce is changing, as is the traditional relationship between employees and employers. These trends put pressure on some types of commitment and alter the kinds of withdrawal seen in the workplace.
D I V E R S I T Y O F T H E WO R K F O R C E One of the most visible trends affecting the workplace is the increased diversity of the U.S. labor force. Demographically speaking, the percentage of the workforce that is white has dropped to 64 percent.76 Meanwhile, the percentage of minorities in the workforce has reached the follow- ing levels: African Americans (12 percent), Hispanics (16 percent), and Asians (5 percent). Thus, minority groups now make up one-third of the workforce. Meanwhile, women have virtu- ally matched men in terms of workforce percentages, with 53 percent of jobs filled by men and 47 percent by women. These statistics show that the “white, male-dominated” workforce is becom- ing a thing of the past.
The workforce is becoming diverse in other ways as well. The percentage of members of the workforce who are 60 years or older stands at around 10 percent.77 As the 78 million Baby Boomers near retirement, they’re continuing to remain in the workforce significantly longer than previous
3.5 What workplace trends are affecting organizational commitment in today’s organizations?
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generations.78 Research suggests that remaining a member of the workforce is actually benefi- cial to older people’s health, keeping them more mentally and physically fit. Moreover, medical advances are helping older employees stay vital longer, just as the physical labor component of most jobs keeps shrinking. The Baby Boomers are also one of the most educated generations, and research suggests that their continued participation in the workforce could add $3 trillion a year to the country’s economic output. That, combined with the uncertainty surrounding Social Security and stock market–based retirement plans, makes staying in the workforce a logical call.
As the economy continues to become more global, U.S. businesses face another important form of diversity: More and more employees are foreign-born. Although stereotypes view immi- grants as staffing blue-collar or service jobs, many of the most educated employees come from abroad. Consider that half of the PhDs working in the United States are foreign-born, as are 45 percent of the physicists, computer scientists, and mathematicians.79 At the same time, more and more American employees are working as expatriates who staff offices in foreign countries for long periods of time. Serving as an expatriate can be a very stressful assignment for employees as they adjust to a new country, a new style of working, and increased distance from family and friends. See our OB Internationally feature for more discussion of organizational commitment in multinational corporations.
These forms of diversity make it more challenging to retain valued employees. Consider the social network diagram in Figure 3-3. As work groups become more diverse with respect to race, gender, age, and national origin, there’s a danger that minorities or older employees will find themselves on the fringe of such networks, which potentially reduces their affective commitment. At the same time, foreign-born employees are likely to feel less embedded in their current jobs and perceive fewer links to their community and less fit with their geographic area. This feeling may reduce their sense of continuance commitment. Recent trends suggest that the most educated and skilled immigrants are leaving the U.S. workforce at a rate of about 1,000 a day, particularly when their home country’s economy begins to boom.80
T H E C H A N G I N G E M P LOY E E – E M P LOY E R R E L AT I O N S H I P A few generations ago, many employees assumed that they would work for a single organization for their entire career. The assumption was that they would exchange a lifetime of loyalty and good work for a lifetime of job security. That perception changed in the 1980s and 1990s as downsizing became a more common part of working life. In 1992, downsizing statistics peaked as 3.4 million jobs were lost, and annual job losses have remained that high ever since.81 Downsizing represents a form of involuntary turnover, when employees are forced to leave the organization regardless of their previous levels of commitment. The increase in downsizing has gone hand-in-hand with increases in temporary workers and outsourcing, fundamentally altering the way employees view their relationships with their employers.
Companies usually downsize to cut costs, particularly during a recession or economic downturn. Does downsizing work? Does it make the company more profitable? One study suggests that the answer is “not usually.” This study examined 3,628 companies over a 15-year time period, of which 59 percent downsized 5 percent or more of their workforce at least once and 33 percent fired 15 percent or more of their workforce at least once.82 The most important result was that downsizing actually harmed company profitability and stock price. In fact, it typically took firms two years to return to the performance levels that prompted the downsizing in the first place. The exception to this rule was companies that downsized in the context of some larger change in assets (e.g., the sale of a line of business, a merger, an acquisition). However, such firms were relatively rare; only one- eighth of the downsizers were involved in some sort of asset change at the time the layoffs occurred.
Why doesn’t downsizing tend to work? One reason revolves around the organizational com- mitment levels of the so-called survivors. The employees who remain in the organization after a downsizing are often stricken with “survivor syndrome,” characterized by anger, depression, fear, distrust, and guilt.83 One study found that downsizing survivors actually experienced more work-related stress than did the downsizing victims who went on to find new employment.84 Survivor syndrome tends to reduce organizational commitment levels at the worst possible time, as downsizing survivors are often asked to work extra hard to compensate for their lost colleagues.
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Fostering organizational commitment can be more complex in multinational corporations, for two primary reasons. First, multinational corporations provide two distinct foci of commitment: Employees can be committed to the local subsidiary in which they work, or they can be commit- ted to the global organization. Research on commitment in multinational corporations suggests that employees draw a distinction between those two foci when judging their commitment. Spe- cifically, employees distinguish between the prestige of their local subsidiary and the reputation of the larger organization. They also distinguish between the support provided by their local supervi- sor and the support provided by the global organization’s top management. Such results reveal that it’s possible to be committed to the local office but not the overall organization, or vice versa.
Second, multinational corporations require many employees to serve as expatriates for sig- nificant periods of time. Research suggests that the organizational commitment of expatriates depends, in part, on how well they adjust to their foreign assignments. Research further suggests that expatriates’ adjustment comes in three distinct forms:
• Work adjustment. The degree of comfort with specific job responsibilities and performance expectations.
• Cultural adjustment. The degree of comfort with the general living conditions, climate, cost of living, transportation, and housing offered by the host culture.
• Interaction adjustment. The degree of comfort when socializing and interacting with members of the host culture.
A study of American multinational corporations in the transportation, service, manufactur- ing, chemical, and pharmaceutical industries showed that all three forms of adjustment relate significantly to affective commitment. If expatriates cannot feel comfortable in their assignment, it’s difficult for them to develop an emotional bond to their organization. Instead, they’re likely to withdraw from the assignment, both psychologically and physically.
What factors contribute to an expatriate’s adjustment levels? It turns out that work adjustment depends on many of the same things that drive domestic employees’ job satisfaction and motiva- tion. Cultural and interaction adjustment, in contrast, are very dependent on spousal and family comfort. If an expatriate’s spouse or children are unhappy in their new environment, it becomes very difficult for the expatriate to remain committed. Fortunately, research suggests that cultural and interaction adjustment can increase with time, as experiences in the host nation gradually increase expatriates’ sense of comfort and, ultimately, their commitment to the work assignment.
OB INTERNATIONALLY
Sources: J.S. Black, M. Mendenhall, and G. Oddou, “Toward a Comprehensive Model of International Adjustment: An Integration of Multiple Theoretical Perspectives,” Academy of Management Review 16 (1991), pp. 291–317; R. Hechanova, T.A. Beehr, and N.D. Christiansen, “Antecedents and Consequences of Employees’ Adjustment to Overseas Assignment: A Meta-Analytic Review,” Applied Psychology: An International Review 52 (2003), pp. 213–36; C. Reade, “Antecedents of Organizational Identification in Multinational Corporations: Fostering Psychological Attachment to the Local Subsidiary and the Global Organization,” International Journal of Human Resource Management 12 (2001), pp. 1269–91; and M. A. Shaffer, and D.A. Harrison, “Expatriates’ Psychological Withdrawal from International Assignments: Work, Nonwork, and Family Influences,” Personnel Psychology 51 (1998), pp. 87–118.
Indeed, a study of 3,500 Boeing employees revealed some particularly stark examples of survivor syndrome.85 Specifically, the study showed that employees who survived a 33 percent downsizing had depression scores that were nearly twice as high as those who left. They were also more likely to binge drink and experience chronic sleeping and health problems.
The change in employee–employer relationships brought about by a generation of downsiz- ing makes it more challenging to retain valued employees. The most obvious challenge is finding a way to maintain affective commitment. The negative emotions aroused by survivor syndrome
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likely reduce emotional attachment to the organization. Moreover, if the downsizing has caused the loss of key figures in employees’ social networks, then their desire to stay will be harmed. However, a second challenge is to find some way to maintain normative commitment. The sense that people should stay with their employer may have been eroded by downsizing, with personal work philosophies now focusing on maximizing marketability for the next opportunity that comes along. Even if employees felt obligated to remain at a firm in the past, seeing colleagues get dis- missed in a downsizing effort could change that belief rather quickly.
One way of quantifying the change in employee–employer relationships is to assess how employ- ees view those relationships psychologically. Research suggests that employees tend to view their employment relationships in quasi-contractual terms. Specifically, psychological contracts reflect employees’ beliefs about what they owe the organization and what the organization owes them.86 These contracts are shaped by the recruitment and socialization activities that employees experi- ence, which often convey promises and expectations that shape beliefs about reciprocal obliga- tions. Some employees develop transactional contracts that are based on a narrow set of specific monetary obligations (e.g., the employee owes attendance and protection of proprietary infor- mation; the organization owes pay and advancement opportunities).87 Other employees develop relational contracts that are based on a broader set of open-ended and subjective obligations (e.g., the employee owes loyalty and the willingness to go above and beyond; the organization owes job security, development, and support).88 Seeing one’s coworkers downsized can constitute a “breach” of an employee’s psychological contract, and research suggests that psychological con- tract breach leads to psychological and physical withdrawal.89 However, trends such as downsiz- ing, use of temporary workers, and outsourcing may also cause employees to define their contracts in more transactional (as opposed to relational) terms.
A P P L I C AT I O N : C O M M I T M E N T I N I T I AT I V E S
Now that you’ve gained a good understanding of organizational commitment, as well as some of the workforce trends that affect it, we close with a discussion of strategies and initiatives that can be used to maximize commitment. What exactly can companies do to increase loyalty? At a general level, they can be supportive. Perceived organizational support reflects the degree to which employees believe that the organization values their contributions and cares about their well-being.90 Organizations can do a number of things to be supportive, including providing ade- quate rewards, protecting job security, improving work conditions, and minimizing the impact of politics.91 In a sense, such support represents the organization’s commitment to its employees. A meta-analysis of 42 research studies with almost 12,000 participants revealed that perceptions of support are strongly related to organizational commitment.92 That same review showed that perceptions of support are associated with lower levels of psychological and physical withdrawal. For more wisdom on fostering commitment, see our OB at the Bookstore feature.
Beyond being supportive, organizations can engage in specific practices that target the three forms of commitment. For example, organizations could foster affective commitment by increas- ing the bonds that link employees together. Ben & Jerry’s holds monthly “joy events” during which all production stops for a few hours to be replaced by Cajun-themed parties, table ten- nis contests, and employee appreciation celebrations.93 Monsanto, the St. Louis, Missouri–based provider of agricultural products, groups staffers into “people teams” charged with designing employee-bonding activities like “snowshoe softball.”94 Such tight bonding among employees may explain why Monsanto’s voluntary turnover rate is only 3 percent. Companies like PepsiCo and Procter & Gamble pay particular attention to mentoring and team-building programs for female and minority employees to create a sense of solidarity among employees who might otherwise remain on the fringe of social networks.95
From a continuance commitment perspective, the priority should be to create a salary and benefits package that creates a financial need to stay. One study compared the impact of a variety of human resource management practices on voluntary turnover and found that two of the most
3.6 How can organizations foster a sense of commit- ment among employees?
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OB AT THE BOOKSTORE WIDGETS by Rodd Wagner (New York: McGraw Hill, 2015).
YOUR PEOPLE ARE NOT YOUR GREATEST ASSET. They’re not yours, and they’re not assets . . . You don’t own your people. Many of them don’t trust you. Some don’t like you. Too many won’t stick it out with you. And the ones you need most have the credentials to walk out fastest if you treat them poorly.
With those words, Rodd Wagner summarizes the importance (and challenge) that surrounds organizational commitment in today’s workplace. Commitment is important, but many companies do a really bad job fostering it. Wagner and his research team conducted interviews and surveys at hundreds of companies to pursue two goals: (1) to get a sense of where most employees fall on the commitment spectrum and (2) to identify “new rules” for increasing loyalty.
Their results on the first goal suggest that 19 percent of employees are “demoralized”—feeling that their employer treats them like “wid- gets.” Another 23 percent are “frustrated”—with moments of positiv- ity surrounded by the sense that the company is poorly run. Another 29 percent are “encouraged”—neither invigorated to give their best nor upset enough to leave. That leaves only 30 percent in the “ener- gized” camp—feeling like employers do a great job of treating them like human beings, not “assets.”
What should companies do to help more employees find their way into that 30 percent? What are the so-called new rules for fostering commitment? Wagner dis- cusses 12 rules. Although some are more relevant to other topics in our integrative model of OB, many are directly relevant to the three types of commitment. For example, Rule #1, “Get Inside Their Heads,” is relevant to affective commitment. It urges managers to truly understand their employees—what they want from their work and how managers can help give it to them. As another example, Rule #3, “Make Money a Non-Issue,” affects continuance commitment. Pay employees fairly so that concerns about pay don’t short-circuit loyalty.
Are you curious whether your current or previous employer is following these rules, and whether you’re “energized,” “demoralized,” or somewhere in between? If so, just Google “New Rules Index” to find out!
©Roberts Publishing Services
significant predictors were average pay level and quality of the benefits package.96 Of course, one factor that goes hand-in-hand with salaries and benefits is advancement/promotion because salaries cannot remain competitive if employees get stuck in neutral when climbing the career lad- der.97 Perhaps that’s why companies that are well known for their commitment to promotion-from- within policies, like A.G. Edwards and the Principal Financial Group, also enjoy especially low voluntary turnover rates.98 Paying attention to career paths is especially important for star employ- ees and foreign-born employees, both of whom have many options for employment elsewhere.99
From a normative commitment perspective, the employer can provide various training and development opportunities for employees, which means investing in them to create the sense that they owe further service to the organization. As the nature of the employee–employer relation- ship has changed, opportunities for development have overtaken secure employment on the list of employee priorities.100 IBM is one company with a reputation for prioritizing development. Its “workforce management initiative” keeps a database of 33,000 résumés to develop a snapshot of
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3.1 Organizational commitment is the desire on the part of an employee to remain a member of the organization. Withdrawal behavior is a set of actions that employees perform to avoid the work situation. Commitment and withdrawal are negatively related to each other—the more committed employees are, the less likely they are to engage in withdrawal.
3.2 There are three types of organizational commitment. Affective commitment occurs when employees want to stay and is influenced by the emotional bonds between employees. Continuance commitment occurs when employees need to stay and is influenced by salary and benefits and the degree to which they are embedded in the community. Normative commitment occurs when employees feel that they ought to stay and is influenced by an organization investing in its employees or engaging in charitable efforts.
3.3 Employees can respond to negative work events in four ways: exit, voice, loyalty, and neglect. Exit is a form of physical withdrawal in which the employee either ends or restricts orga- nizational membership. Voice is an active and constructive response by which employees
TA K E AWAY S
Ben & Jerry’s, founded by Ben Cohen and Jerry Greenfield, goes to great lengths to encourage employees to hang out together and have fun during their workweek. Such bonding activities lower turnover and encour- age valued employees to remain.
©Rebecca Sapp/Getty Images
employee skills.101 IBM uses that snapshot to plan its future training and development activities, with $400 million of the company’s $750 million training budget devoted to giving employees the skills they may need in the future. If employees find developmental activities beneficial and rewarding, they may be tempted to repay those efforts with additional years of service.
A final practical suggestion centers on what to do if withdrawal begins to occur. Managers are usually tempted to look the other way when employees engage in minor forms of withdrawal. After all, sometimes such behaviors simply represent a break in an otherwise busy day. However, the progression model of withdrawal shows that even minor forms of psychological withdrawal often escalate, eventually to the point of absenteeism and turnover. The implication is, therefore, to stop the progression in its early stages by trying to root out the source of the reduced commitment. Many of the most effective companies make great efforts to investigate the causes of low commit- ment, whether at the psychological withdrawal stage or during exit interviews. As one senior oil executive acknowledged, the loss of a talented employee warrants the same sort of investigation as a technical malfunction that causes significant downtime on an oil rig.102
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3.1 Which type of organizational commitment (affective, continuance, or normative) do you think is most important to the majority of employees? Which do you think is most impor- tant to you?
3.2 Describe other ways that organizations can improve affective, continuance, and normative com- mitment, other than the strategies suggested in this chapter. How expensive are those strategies?
3.3 Consider times when you’ve reacted to a negative event with exit, voice, loyalty, or neglect. What was it about the situation that caused you to respond the way you did? Do you usually respond to negative events in the same way, or does your response vary across the four options?
3.4 Can organizations use a combination of monitoring and punishment procedures to reduce psychological and physical withdrawal? How might such programs work from a practical perspective? Do you think they would be effective?
D I S C U S S I O N Q U E S T I O N S
attempt to improve the situation. Loyalty is passive and constructive; employees remain sup- portive while hoping the situation improves on its own. Neglect is a form of psychological withdrawal in which interest and effort in the job decrease.
3.4 Examples of psychological withdrawal include daydreaming, socializing, looking busy, moonlighting, and cyberloafing. Examples of physical withdrawal include tardiness, long breaks, missing meetings, absenteeism, and quitting. Consistent with the progression model, withdrawal behaviors tend to start with minor psychological forms before escalating to more major physical varieties.
3.5 The increased diversity of the workforce can reduce commitment if employees feel lower levels of affective commitment or become less embedded in their current jobs. The employee–employer relationship, which has changed due to decades of downsizing, can reduce affective and normative commitment, making it more of a challenge to retain tal- ented employees.
3.6 Organizations can foster commitment among employees by fostering perceived organiza- tional support, which reflects the degree to which the organization cares about employees’ well-being. Commitment can also be fostered by specific initiatives directed at the three commitment types.
K E Y T E R M S
• Organizational commitment p. 62 • Withdrawal behavior p. 62 • Affective commitment p. 63 • Continuance commitment p. 63 • Normative commitment p. 63 • Focus of commitment p. 65 • Erosion model p. 65 • Social influence model p. 65 • Embeddedness p. 68 • Volunteering p. 69 • Exit p. 70 • Voice p. 70 • Loyalty p. 70 • Neglect p. 70
• Stars p. 70 • Citizens p. 70 • Lone wolves p. 70 • Apathetics p. 70 • Psychological withdrawal p. 72 • Physical withdrawal p. 72 • Independent forms model p. 74 • Compensatory forms model p. 74 • Progression model p. 74 • Psychological contracts p. 79 • Transactional contracts p. 79 • Relational contracts p. 79 • Perceived organizational
support p. 79
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PwC is certainly not the first group to attempt a large-scale study of Millennial attitudes. Such studies face an inherent challenge, however. Researchers have to be able to separate the effects of generation membership—Millennial, Gen-X, or Baby Boomer—from the effect of stage of life—being twenty-something, thirty-something, or forty/fifty-something. Suppose a given study showed that 25-year olds were especially attracted to firms that offered paid time off for volun- teering. Is the explanation for that finding that Millennials value volunteering more than previ- ous generations, or that twenty-somethings value it more than older employees? That’s a critical distinction because Millennials will remain members of their generation for their lifespan, whereas twenty-somethings will eventually turn into thirty-somethings.
One study, published in Journal of Management, did an especially good job of teasing apart gen- eration membership and stage of life. The study drew from an annual survey of 15,000 high school seniors—thereby holding stage of life constant. Respondents were classified as Baby Boomers if they were born between 1946 and 1964, as Gen-X if they were born between 1965 and 1981, and as Millennials if they were born between 1982 and 1999. What did the study uncover? One finding was that Millennials valued leisure time more than either Gen-X or Baby Boomers, being more likely to value “A job that leaves a lot of time for other things in your life.” Somewhat surprisingly given existing stereotypes, there were few differences across generations in valuing intrinsic rewards (“A job that is interesting to do”), altruistic rewards (“A job that gives you an opportunity to be directly helpful to others”), or social rewards (“A job that gives you a chance to make friends”). Millennials were less focused on extrinsic rewards (“A job that provides you with a chance to earn a good deal of money”) than Gen-X, but more focused on such things than Baby Boomers.
The finding that Millennials value leisure time dovetails nicely with PwC’s own results. Their study showed that 95 percent of Millennials believed that work-life balance was important to them. More- over, 25 percent of Millennials were disappointed in the work-life balance that PwC was affording them. From a loyalty perspective, those 25 percent can be viewed as “retention risks”—employees who may decide to turn over because they no longer want to stay with PwC. In response, PwC organized a top-down initiative where managers were encouraged to work with their employees to chart out a work schedule that suited them. The good news is that PwC now understands what drives loyalty among Millennials. The bad news is that future interns will soon be members of the next generation!
3.1 Compare the findings described above for Millennials to your own views on Millennial char- acteristics. What surprises you about the findings? What doesn’t surprise you?
3.2 If you think about the three types of commitment—affective, continuance, and normative— which do you think is most changed among Millennials (or twenty-somethings)? In what way?
3.3 Consider all the initiatives and programs PwC uses to inspire employee loyalty. Do most of those seek to “move the needle” on affective commitment, continuance commitment, or normative commitment?
Sources: C. Groden, “Five Things You Can Do to Attract Millennial Talent,” Fortune, March 15, 2016; R. Levering, “The 100 Best Companies to Work For,” Fortune, March 15, 2016; M. Moskowitz, and R. Levering, “The 100 Best Companies to Work For,” Fortune, March 15, 2015; P. Thallner, “Where Hours Aren’t Everything,” Great Place to Work, March 29, 2016, https://www.greatplacetowork.com/blog/130-where-hours-aren-t-everything?highlight=WyJwd2MiLCJwd2MncyJd; J.M. Twenge, S.M. Campbell, B.J. Hoffman, and C.E. Lance, “Generational Differences in Work Values: Leisure and Extrinsic Values Increasing, Social and Intrinsic Values Decreasing,” Journal of Management 36, pp. 1117–42; and C. Zillman, “Hot New Perk: Paying Down Student Loans,” Fortune, March 15, 2016.
C A S E : P W C
3.5 Can you think of reasons the increased diversity of the workforce might actually increase organizational commitment? Why? Which of the three types of commitment might explain that sort of result?
3.6 Studies suggest that decades of downsizing have lowered organizational commitment levels. Can you think of a way that an organization can conduct layoffs without harming the com- mitment of the survivors? How?
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EXERCISE: REACTING TO NEGATIVE EVENTS
The purpose of this exercise is to explore how individuals react to three all-too-common scenarios that represent negative workplace events. This exercise uses groups, so your instructor will either assign you to a group or ask you to create your own group. The exercise has the following steps:
3.1 Individually read the following three scenarios: the annoying boss, the boring job, and pay and seniority. For each scenario, write down two specific behaviors in which you would likely engage in response to that scenario. Write down what you would actually do, as opposed to what you wish you would do. For example, you may wish that you would march into your boss’s office and demand a change, but if you would actually do nothing, write down “nothing.”
3.2 In groups, compare and contrast your likely responses to the three scenarios. Come to a consensus on the two most likely responses for the group as a whole. Elect one group mem- ber to write the two likely responses to each of the three scenarios on the board or on a transparency.
3.3 Class discussion (whether in groups or as a class) should center on where the likely responses fit into the exit–voice–loyalty–neglect framework. What personal and situational factors would lead someone to one category of responses over another? Are there any responses that do not fit into the exit–voice–loyalty–neglect framework?
Annoying Boss You’ve been working at your current company for about a year. Over time, your boss has become more and more annoying to you. It’s not that your boss is a bad person, or even necessarily a bad boss. It’s more a personality conflict—the way your boss talks, the way your boss manages every little thing, even the facial expressions your boss uses. The more time passes, the more you just can’t stand to be around your boss.
Two likely behaviors:
Boring Job You’ve been working at your current company for about a year. You’ve come to realize that your job is pretty boring. It’s the first real job you’ve ever had, and at first it was nice to have some money and something to do every day. But the “new job” excitement has worn off, and things are actually quite monotonous. Same thing every day. It’s to the point that you check your watch every hour, and Wednes- days feel like they should be Fridays.
Two likely behaviors:
Pay and Seniority You’ve been working at your current company for about a year. The consensus is that you’re doing a great job—you’ve gotten excellent performance evaluations and have emerged as a leader on many projects. As you’ve achieved this high status, however, you’ve come to feel that you’re underpaid. Your com- pany’s pay procedures emphasize seniority much more than job performance. As a result, you look at other members of your project teams and see poor perform- ers making much more than you, just because they’ve been with the company longer.
Two likely behaviors:
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3.1 Shepherd, L. “Focusing Knowledge Reten- tion on Millennials.” Workforce Management, August 2010, p. 6.
3.2 Allen, D.G.; P.C. Bryant; and J.M. Vardaman. “Retaining Talent: Replacing Misconceptions with Evidence-Based Strate- gies.” Academy of Man- agement Perspectives 24 (2010), pp. 48–64.
3.3 Meyer, J.P., and N.J. Allen. Commitment in the Workplace. Thousand Oaks, CA: Sage, 1997; and Mowday, R.T.; R.M. Steers; and L.W. Porter. “The Measurement of Organizational Com- mitment.” Journal of Vocational Behavior 14 (1979), pp. 224–47.
3.4 Hulin, C.L. “Adapta- tion, Persistence, and Commitment in Organi- zations.” In Handbook of Industrial and Organi- zational Psychology, Vol. 2, ed. M.D. Dunnette and L.M. Hough. Palo Alto, CA: Consulting Psychologists Press, 1991, pp. 445–506.
3.5 Allen, N.J., and J.P. Meyer. “The Measurement and Ante- cedents of Affective, Continuance and Nor- mative Commitment to the Organization.” Journal of Occupational Psychology 63 (1990), pp. 1–18; Meyer, J.P., and N.J. Allen. “A Three-Component Conceptualization of
Organizational Commit- ment.” Human Resource Management Review 1 (1991), pp. 61–89; and Meyer and Allen, Commitment in the Workplace.
3.6 Ibid.
3.7 Ibid.
3.8 Meyer and Allen, Commitment in the Workplace.
3.9 Mowday et al., “The Measurement of Organizational Commitment.”
3.10 Ashforth, B.E.; S.H. Harrison; and K.G. Corley. “Identification in Organizations: An Examination of Four Fundamental Questions.” Journal of Management 34 (2008), pp. 325–74.
3.11 Ibid.
3.12 Meyer, J.P.; D.J. Stan- ley; L. Herscovitch; and L. Topolnytsky. “Affective, Continu- ance, and Normative Commitment to the Organization: A Meta- Analysis of Anteced- ents, Correlates, and Consequences.” Journal of Vocational Behavior 61 (2002), pp. 20–52.
3.13 Mathieu, J.E., and D.M. Zajac. “A Review and Meta-Analysis of the Antecedents, Correlates, and Conse- quences of Organiza- tional Commitment.” Psychological Bulletin 108 (1990), pp. 171–94.
3.14 Johns, G. “The Psy- chology of Lateness, Absenteeism, and Turnover.” In Handbook of Industrial, Work, and Organizational Psychology, ed. N. Anderson; D.S. Ones; H.K. Sinangil; and C. Viswesvaran. Thousand Oaks, CA: Sage, 2001, pp. 232–52.
3.15 Ibid.
3.16 Flint, J. “Analyze This.” Bloomberg Business- week, February 21–27, 2011, pp. 82–83.
3.17 Ladika, S. “Socially Evolved.” Workforce Management, September 2010, pp. 18–22.
3.18 Kanter, R.M. “Commitment and Social Organization: A Study of Commit- ment Mechanisms in Utopian Communities.” American Sociological Review 33 (1968), pp. 499–517.
3.19 Stebbins, R.A. Commit- ment to Deviance: The Nonprofessional Crimi- nal in the Community. Westport, CT: Green- wood Press, 1970.
3.20 Becker, H.S. “Notes on the Concept of Com- mitment.” American Journal of Sociology 66 (1960), pp. 32–42.
3.21 Rusbult, C.E., and D. Farrell. “A Longitudinal Test of the Investment Model: The Impact of Job Satisfaction, Job Commitment, and
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Turnover of Variations in Rewards, Costs, Alternatives, and Investments.” Journal of Applied Psychology 68 (1983), pp. 429–38.
3.22 Meyer and Allen, Commitment in the Workplace.
3.23 Meyer et al., “Affective, Continuance, and Nor- mative Commitment.”
3.24 Mitchell, T.R.; B.C. Holtom; T.W. Lee; C.J. Sablynski; and M. Erez. “Why People Stay: Using Job Embed- dedness to Predict Voluntary Turnover.” Academy of Manage- ment Journal 44 (2001), pp. 1102–21.
3.25 Felps, W.; T.R. Mitchell; D.R. Hekman; T.W. Lee; B.C. Holtom; and W.S. Harman. “Turn- over Contagion: How Coworkers’ Job Embed- dedness and Job Search Behaviors Influence Quitting.” Academy of Management Journal 52 (2009), pp. 545–61; and Hom, P.W.; A.S. Tsui; J.B. Wu; T.W. Lee; A.Y. Zhang; P.P. Fu; and L. Li. “Explaining Employ- ment Relationships with Social Exchange and Job Embedded- ness.” Journal of Applied Psychology 94 (2009), pp. 277–97.
3.26 Burton, J.P.; B.C. Holtom; C.J. Sablynski; T.R. Mitchell; and T.W. Lee. “The Buffering Effects of Job Embed- dedness on Negative Shocks.” Journal of Vocational Behavior 76 (2010), pp. 42–51.
3.27 Ramesh, A., and M.J. Gelfand. “Will They Stay or Will They Go? The Role of Job Embed- dedness in Predicting Turnover in Individual- istic and Collectivistic Cultures.” Journal of Applied Psychology 95 (2010), pp. 807–23.
3.28 Ng, T.W.H., and D.C. Feldman. “Organiza- tional Embeddedness and Occupational Embeddedness across Career Stages.” Journal of Vocational Behavior 70 (2007), pp. 336–51.
3.29 Levering, R., and M. Moskowitz. “The 100 Best Companies to Work For.” Fortune, January 24, 2005, pp. 64–94.
3.30 Allen and Meyer, “The Measurement and Antecedents of Affec- tive, Continuance and Normative Commit- ment to the Organiza- tion”; Meyer and Allen, “A Three-Component Conceptualization”; and Meyer and Allen, Commitment in the Workplace.
3.31 Wiener, Y. “Commit- ment in Organizations: A Normative View.” Academy of Manage- ment Review 7 (1982), pp. 418–28.
3.32 Meyer and Allen, “A Three-Component Conceptualization.”
3.33 Rodell, J.B. “Finding Meaning through Volunteering: Why Do Employees Volunteer and What Does It Mean for Their Jobs?”
Academy of Manage- ment Journal 56 (2013), pp. 1274–94.
3.34 Rodell, J.B., and J.W. Lynch. “Perceptions of Employee Volunteer- ing: Is It ‘Credited’ or ‘Stigmatized’ by Col- leagues?” Academy of Management Journal 56 (2016), pp. 611–35.
3.35 Grow, B. “The Debate over Doing Good.” BusinessWeek, August 15, 2005, pp. 76–78.
3.36 Ibid.
3.37 Rafter, M.V. “Appealing to Workers’ Civic Side.” Workforce Management, August 2010, p. 3.
3.38 Frauenheim, E. “The Manager Question.” Workforce Management, April 2010, pp. 19–24.
3.39 Hirschman, A.O. Exit, Voice, and Loyalty: Responses to Decline in Firms, Organizations, and States. Cambridge, MA: Harvard Univer- sity Press, 1970; and Farrell, D. “Exit, Voice, Loyalty, and Neglect as Responses to Job Dissatisfaction: A Multidimensional Scal- ing Study.” Academy of Management Journal 26 (1983), pp. 596–607.
3.40 Hirschman, Exit, Voice, and Loyalty; Farrell, “Exit, Voice, Loyalty, and Neglect”; and Rusbult, C.E.; D. Farrell; C. Rogers; and A.G. Mainous III. “Impact of Exchange Variables on Exit, Voice, Loyalty, and Neglect: An Integrating Model of Responses to Declining Job
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Satisfaction.” Academy of Manage- ment Journal 31 (1988), pp. 599–627.
3.41 Ibid.
3.42 Ibid.
3.43 Farrell, “Exit, Voice, Loyalty, and Neglect”; and Rusbult et al., “Impact of Exchange Variables.”
3.44 Withey, M.J., and W.H. Cooper. “Predicting Exit, Voice, Loyalty, and Neglect.” Adminis- trative Science Quarterly 34 (1989), pp. 521–39; and Burris, E.R.; J.R. Detert; and D.S. Chiaburu. “Quitting Before Leaving: The Mediating Effects of Psychological Attach- ment and Detachment on Voice.” Journal of Applied Psychology 93 (2008), pp. 912–22.
3.45 Griffeth, R.W.; S. Gaertner; and J.K. Sager. “Taxonomic Model of Withdrawal Behaviors: The Adap- tive Response Model.” Human Resource Management Review 9 (1999), pp. 577–90.
3.46 Ibid.
3.47 Ibid.
3.48 Ibid.
3.49 Cherrington, D. The Work Ethic. New York: AMACOM, 1980.
3.50 Hulin, C.L.; M. Roznowski; and D. Hachiya. “Alternative Opportunities and Withdrawal Decisions: Empirical and Theo- retical Discrepancies
and an Integration.” Psychological Bulletin 97 (1985), pp. 233–50.
3.51 Fisher, A. “Turning Clock-Watchers into Stars.” Fortune, March 22, 2004, p. 60.
3.52 Hulin et al., “Alterna- tive Opportunities and Withdrawal Decisions.”
3.53 Lim, V.K.G. “The IT Way of Loafing on the Job: Cyberloafing, Neu- tralizing, and Organiza- tional Justice.” Journal of Organizational Behavior 23 (2002), pp. 675–94.
3.54 Jackson, M. “May We Have Your Attention, Please?” BusinessWeek, June 23, 2008, p. 55.
3.55 Spitznagel, E. “Any Given Monday.” Bloom- berg Businessweek, September 13–19, 2010, pp. 81–83.
3.56 Gerdes, L. “Nothin’ But Net.” BusinessWeek, March 26, 2007, p. 16.
3.57 Source: Lim, Vivien KG. “The IT way of loafing on the job: cyberloafing, neutraliz- ing and organizational justice.” Journal of Organizational Behavior 23.5 (2002): 675-694.
3.58 Hulin et al., “Alterna- tive Opportunities and Withdrawal Decisions.”
3.59 Koslowsky, M.; A. Sagie; M. Krausz; and A.D. Singer. “Cor- relates of Employee Lateness: Some Theo- retical Considerations.” Journal of Applied Psychology 82 (1997), pp. 79–88.
3.60 Blau, G. “Develop- ing and Testing a Taxonomy of Lateness Behavior.” Journal of Applied Psychology 79 (1994), pp. 959–70.
3.61 Muchinsky, P.M. “Employee Absentee- ism: A Review of the Literature.” Journal of Vocational Behavior 10 (1977), pp. 316–40; and Harrison, D.A. “Time for Absenteeism: A 20-Year Review of Origins, Offshoots, and Outcomes.” Journal of Management 24 (1998), pp. 305–50.
3.62 Fichman, M. “Motiva- tional Consequences of Absence and Atten- dance: Proportional Hazard Estimation of a Dynamic Motivation Model.” Journal of Applied Psychology 73 (1988), pp. 119–34.
3.63 Martocchio, J.J., and D.I. Jimeno. “Employee Absenteeism as an Affective Event.” Human Resource Management Review 13 (2003), pp. 227–41.
3.64 Nicholson, N., and G. Johns. “The Absence Climate and the Psy- chological Contract: Who’s in Control of Absence?” Academy of Management Review 10 (1985), pp. 397–407.
3.65 Spitznagel, E. “The Sick-Day Bounty Hunters.” Bloomberg Businessweek, December 6–12, 2010, pp. 93–95.
3.66 Lucas, S. “The Shock and Awe of IKEA’s
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Employee Spying Pro- gram.” Inc., December, 2013.
3.67 Ibid.
3.68 Campion, M.A. “Meaning and Measure- ment of Turnover: Comparison of Alter- native Measures and Recommendations for Research.” Journal of Applied Psychology 76 (1991), pp. 199–212.
3.69 Lee, T.W., and T.R. Mitchell. “An Alterna- tive Approach: The Unfolding Model of Voluntary Employee Turnover.” Academy of Management Review 19 (1994), pp. 51–89; Lee, T.W., and T.R. Mitchell. “An Unfolding Model of Voluntary Employee Turnover.” Academy of Management Journal 39 (1996), pp. 5–36; Lee, T.W.; T.R. Mitchell; B.C. Holtom; L.S. McDaniel; and J.W. Hill. “The Unfolding Model of Voluntary Turnover: A Replica- tion and Extension.” Academy of Manage- ment Journal 42 (1999), pp. 450–62; and Lee, T.H.; B. Gerhart; I. Weller; and C.O. Trevor. “Under- standing Voluntary Turnover: Path-Specific Job Satisfaction Effects and the Importance of Unsolicited Job Offers.” Academy of Management Journal 51 (2008), pp. 651–71.
3.70 Mobley, W. “Intermedi- ate Linkages in the Relationship Between
Job Satisfaction and Employee Turnover.” Journal of Applied Psychology 62 (1977), pp. 237–40; and Hom, P.W.; R. Griffeth; and C.L. Sellaro. “The Validity of Mobley’s (1977) Model of Employee Turnover.” Organizational Behavior and Human Perfor- mance 34 (1984), pp. 141–74.
3.71 Lee and Mitchell, “An Alternative Approach”; Lee and Mitchell, “An Unfolding Model of Voluntary Employee Turnover”; Lee and Mitchell, “The Unfold- ing Model of Voluntary Turnover”; and Porter, L.W., and R.M. Steers. “Organizational, Work, and Personal Factors in Employee Turnover and Absenteeism.” Psychological Bulletin 80 (1973), pp. 151–76.
3.72 Johns, “The Psychology of Lateness, Absentee- ism, and Turnover.”
3.73 Rosse, J.G. “Relations among Lateness, Absence, and Turnover: Is There a Progres- sion of Withdrawal?” Human Relations 41 (1988), pp. 517–31.
3.74 Mitra, A.; G.D. Jenkins Jr.; and N. Gupta. “A Meta-Analytic Review of the Relationship Between Absence and Turnover.” Journal of Applied Psychology 77 (1992), p. 879–89; Koslowsky et al., “Cor- relates of Employee Lateness”; and Grif- feth, R.W.; P.W. Hom;
and S. Gaertner. “A Meta-Analysis of Ante- cedents and Correlates of Employee Turnover: Update, Moderator Tests, and Research Implications for the Next Millennium.” Journal of Management 26 (2000), pp. 463–88.
3.75 Koslowsky et al., “Cor- relates of Employee Lateness.”
3.76 Burns, C.; K. Barton; and S. Kerby. “The State of Diversity in Today’s Workforce.” Center for American Progress, July 2012.
3.77 Ibid.
3.78 Coy, P. “Old. Smart. Productive.” Business- Week, June 27, 2005, pp. 78–86.
3.79 Fisher, A. “Holding on to Global Talent.” BusinessWeek, October 31, 2005, p. 202.
3.80 Fisher, “Holding on to Global Talent.”
3.81 Morris, J.R.; W.F. Cascio; and C.E. Young. “Downsizing after All These Years: Questions and Answers about Who Did It, How Many Did It, and Who Benefited from It.” Organizational Dynamics 27 (1999), pp. 78–87.
3.82 Ibid.
3.83 Devine, K.; T. Reay; L. Stainton; and R. Collins-Nakai. “Down- sizing Outcomes: Better a Victim Than a Survi- vor?” Human Resource
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Management 42 (2003), pp. 109–24.
3.84 Ibid.
3.85 Conlin, M. “When the Laid-Off Are Better Off.” BusinessWeek, November 2, 2009, p. 65.
3.86 Rousseau, D.M. “Psy- chological and Implied Contracts in Organi- zations.” Employee Responsibilities and Rights Journal 2 (1989), pp. 121–39.
3.87 Rousseau, D.M. “New Hire Perceptions of Their Own and Their Employer’s Obligations: A Study of Psychologi- cal Contracts.” Journal of Organizational Behavior 11 (1990), pp. 389–400; Robin- son, S.L.; M.S. Kraatz; and D.M. Rousseau. “Changing Obligations and the Psychological Contract: A Longitu- dinal Study.” Academy of Management Journal 37 (1994), pp. 137–52; and Robinson, S.L., and E.W. Morrison. “Psychological Con- tracts and OCB: The Effect of Unfulfilled Obligations on Civic Virtue Behavior.” Jour- nal of Organizational Behavior 16 (1995), pp. 289–98.
3.88 Ibid.
3.89 Robinson, S.L. “Violat- ing the Psychological Contract: Not the Exception but the Norm.” Journal of Organizational Behavior
15 (1994), pp. 245–59; Robinson, S.L. “Trust and Breach of the Psy- chological Contract.” Administrative Science Quarterly 41 (1996), pp. 574–99; Zhao, H.; S.J. Wayne; B.C. Glibkowski; and J. Bravo. “The Impact of Psychological Contract Breach on Work- Related Outcomes: A Meta-Analysis.” Personnel Psychology 60 (2007), pp. 647–80; and Bal, P.M.; A.H. De Lange; P.G.W. Jansen; and M.E.G. Van der Velde. “Psychological Contract Breach and Job Attitudes: A Meta- Analysis of Age as a Moderator.” Journal of Vocational Behavior 72 (2008), pp. 143–58.
3.90 Eisenberger, R.; R. Huntington; S. Hutchi- son; and D. Sowa. “Per- ceived Organizational Support.” Journal of Applied Psychology 71 (1986), pp. 500–507.
3.91 Rhoades, L., and R. Eisenberger. “Perceived Organizational Sup- port.” Journal of Applied Psychology 87 (2002), pp. 698–714; and Allen, D.G.; L.M. Shore; and R.W. Griffeth. “The Role of Perceived Organizational Support and Supportive Human Resources Practices in the Turnover Process.” Journal of Management 29 (2003), pp. 99–118.
3.92 Rhoades and Eisen- berger, “Perceived Orga- nizational Support.”
3.93 Dessler, G. “How to Earn Your Employees’ Commitment.” Academy of Manage- ment Executive 13 (1999), pp. 58–67.
3.94 Levering and Mos- kowitz, “In Good Company.”
3.95 Fisher, A. “How You Can Do Better on Diversity.” Business- Week, November 15, 2005, p. 60; and Fisher, “Holding on to Global Talent.”
3.96 Shaw, J.D.; J.E. Delery; G.D. Jenkins Jr.; and N. Gupta. “An Organization-Level Analysis of Voluntary and Involuntary Turnover.” Academy of Management Journal 41 (1998), pp. 511–25.
3.97 Dessler, “How to Earn Your Employees’ Commitment.”
3.98 Levering and Mos- kowitz, “In Good Company.”
3.99 Fisher, “Holding on to Global Talent”; and Fisher, A. “How to Keep your Stars from Leaving.” Business- Week, July 26, 2005, p. 44.
3.100 Cappelli, P. “Managing without Commit- ment.” Organizational Dynamics 28 (2000), pp. 11–24.
3.101 Byrnes, N. “Star Search.” Business- Week, October 10, 2005, pp. 68–78.
3.102 Ibid.
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CHAPTER 4 Job Satisfaction
CHAPTER 5 Stress
CHAPTER 6 Motivation
CHAPTER 7 Trust, Justice, and Ethics
CHAPTER 8 Learning and Decision Making
INDIVIDUAL MECHANISMS
2 P A R T
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LEARNING GOALS
4
4.1 What is job satisfaction? 4.2 What are values, and how do they affect job satisfaction? 4.3 What specific facets do employees consider when evaluating their job satisfaction? 4.4 Which job characteristics can create a sense of satisfaction with the work itself? 4.5 How is job satisfaction affected by day-to-day events? 4.6 What are mood and emotions, and what specific forms do they take? 4.7 How does job satisfaction affect job performance and organizational commitment? How does it affect
life satisfaction?
4.8 What steps can organizations take to assess and manage job satisfaction?
After reading this chapter, you should be able to answer the following questions:
Job Satisfaction
INDIVIDUAL OUTCOMES
INDIVIDUAL MECHANISMS
INDIVIDUAL CHARACTERISTICS
ORGANIZATIONAL MECHANISMS
Organizational Culture
Organizational Structure
Teams: Processes &
Communication
Motivation
Trust, Justice, & Ethics
Teams: Characteristics &
Diversity Learning &
Decision Making
Ability
Personality & Cultural Values
Stress
Leadership: Power &
Negotiation
Job Satisfaction
Leadership: Styles &
Behaviors
Organizational Commitment
Job Performance
GROUP MECHANISMS
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C an you guess the two best supermarkets in the United States, in terms of customer service ratings provided by the American Customer Satisfaction
Index? One is Trader Joe’s, the Monrovia, California-based chain. But who’s the other? The answer is Publix—founded in 1930 by George Jenkins in Winter Garden, Florida. How does Publix provide such good customer service? One way is by having happy employees. Jenkins had two goals in founding the company: (1) to create the world’s best shop- ping experience, and (2) to create the world’s best work- place. Notes one store manager, “The reason Publix is such a great place to work is that nothing has changed in 86 years.” Other employees obviously agree, as the com- pany’s been named one of Fortune’s 100 Best Companies to Work For every year since its inception.
What exactly makes Publix such a great place to work? For one, the company promotes from within. There’s a for- mal process for part-timers to go to full-time and for full- timers to pursue a long-term career. Indeed, virtually all of Publix’s management team started out in entry-level positions. Of the 60,000 openings at the chain last year, over 26,000
were filled internally. And 30 percent of the rest were filled using employee referrals. Says incoming CEO Todd Jones, “You can do whatever you want in this company, including becoming CEO.” Jones should know, given that he started out bagging groceries at Publix 36 years ago.
The company also pays well, with above-market start- ing salaries. Employees are eligible for raises after their first six months and can gain stock in the company six months later. Managers provide new hires with generous amounts of feedback, including 30-day, 60-day, and 90-day “check- in meetings.” The company also offers a tuition reimburse- ment program to employees who work at least 10 hours per week, paying up to $12,800 per employee. All these reasons explain why so many employees “bleed green”—a term used to capture the extreme satisfaction and loyalty felt by the rank and file. It’s that satisfaction that employ- ees are asked to channel into better customer service. In fact, new hires are asked to memorize a slogan coined by the founder: “Make every customer’s day a little bit better because they met you.”
PUBLIX
©Peter Titmuss/Alamy
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J O B S AT I S FAC T I O N
This chapter takes us to a new portion of our integrative model of organizational behavior. Job satisfaction is one of several individual mechanisms that directly affects job performance and organizational commitment. If employees are very satisfied with their jobs and experience posi- tive emotions while working, they may perform their jobs better and choose to remain with the company for a longer period of time. Think about the worst job that you’ve held in your life, even if it was just a summer job or a short-term work assignment. What did you feel during the course of the day? How did those feelings influence the way you behaved, in terms of your time spent on task and citizenship behaviors rather than counterproductive or withdrawal behaviors?
Job satisfaction is a pleasurable emotional state resulting from the appraisal of one’s job or job experiences.1 In other words, it represents how you feel about your job and what you think about your job. Employees with high job satisfaction experience positive feelings when they think about their duties or take part in task activities. Employees with low job satisfaction experience negative feelings when they think about their duties or take part in their task activities. Unfortu- nately, workplace surveys suggest that satisfied employees are becoming more and more rare. For example, one recent survey showed that just 45 percent of Americans were satisfied with their jobs, down from 61 percent two decades ago.2 What explains the drop? The same survey revealed declines in the percentage of employees who find their work interesting (51 percent), who are satisfied with their boss (51 percent), and who like their coworkers (57 percent). Reversing such trends requires a deeper understanding of exactly what drives job satisfaction levels.
W H Y A R E S O M E E M P LOY E E S M O R E S AT I S F I E D T H A N OT H E R S ?
So what explains why some employees are more satisfied than others? At a general level, employees are satisfied when their job provides the things that they value. Values are those things that people consciously or subconsciously want to seek or attain.3 Think about this question for a few moments: What do you want to attain from your job, that is, what things do you want your job to give you? A good wage? A sense of achievement? Colleagues who are fun to be around? If you had to make a list of the things you value with respect to your job, most or all of them would likely be shown in Table 4-1. This table summarizes the content of popular surveys of work values, broken down into more general categories.4 Many of those values deal with the things that your work can give you, such as good pay or the chance for frequent promotions. Other values pertain to the context that sur- rounds your work, including whether you have a good boss or good coworkers. Still other values deal with the work itself, like whether your job tasks provide you with freedom or a sense of achievement.
Consider the list of values in Table 4-1. Which would make your “top five” in terms of impor- tance right now, at this stage of your life? Maybe you have a part-time job during college and you value enjoyable coworkers or a comfortable work environment above everything else. Or maybe you’re getting established in your career and starting a family, which makes a high salary and frequent promotions especially critical. Or perhaps you’re at a point in your career that you feel a need to help others or find an outlet for your creative expression. (In our case, we value fame, which is what led us to write this textbook. We’re still waiting for Fallon’s call—or at least Kimmel’s). Regardless of your “top five,” you can see that different people value different things and that your values may change during the course of your working life.
VA LU E F U L F I L L M E N T Values play a key role in explaining job satisfaction. Value-percept theory argues that job satisfac- tion depends on whether you perceive that your job supplies the things that you value.5 This theory can be summarized with the following equation:
4.1 What is job performance?
4.2 What are values, and how do they affect job satisfaction?
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Dissatisfaction = (Vwant – Vhave) × (Vimportance)
In this equation, Vwant reflects how much of a value an employee wants, Vhave indicates how much of that value the job supplies, and Vimportance reflects how important the value is to the employee. Big differences between wants and haves create a sense of dissatisfaction, especially when the value in question is important. Note that the difference between Vwant and Vhave gets mul- tiplied by importance, so existing discrepancies get magnified for important values and minimized for trivial values. As an example, say that you were evaluating your pay satisfaction. You want to be earning around $70,000 a year but are currently earning $50,000 a year, so there’s a $20,000 discrepancy. Does that mean you feel a great deal of pay dissatisfaction? Only if pay is one of the most important values to you from Table 4-1. If pay isn’t that important, you probably don’t feel much dissatisfaction.
Value-percept theory also suggests that people evaluate job satisfaction according to specific “facets” of the job.6 After all, a “job” isn’t one thing—it’s a collection of tasks, relationships, and rewards.7 The most common facets that employees consider in judging their job satisfaction appear in Figure 4-1. The figure includes the “want vs. have” calculations that drive satisfaction with pay, promotions, supervision, coworkers, and the work itself. The figure also shows how satisfaction with
4.3 What specific facets do employees consider when evaluating their job satisfaction?
TABLE 4-1 Commonly Assessed Work Values
CATEGORIES SPECIFIC VALUES
Pay • High salary • Secure salary
Promotions • Frequent promotions • Promotions based on ability
Supervision • Good supervisory relations • Praise for good work
Coworkers • Enjoyable coworkers • Responsible coworkers
Work Itself • Utilization of ability • Freedom and independence • Intellectual stimulation • Creative expression • Sense of achievement
Altruism • Helping others • Moral causes
Status • Prestige • Power over others • Fame
Environment • Comfort • Safety
Key Question: Which of these things are most important to you?
Sources: Adapted from R.V. Dawis, “Vocational Interests, Values, and Preferences,” in Handbook of Industrial and Orga- nizational Psychology, Vol. 2, Ed. M.D. Dunnette and L.M. Hough (Palo Alto, CA: Consulting Psychologists Press, 1991), pp. 834–71; and D.M. Cable and J.R. Edwards, “Complementary and Supplementary Fit: A Theoretical and Empirical Investigation,” Journal of Applied Psychology 89 (2004), pp. 822–34.
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those five facets adds together to create “overall job satisfaction.” Figure 4-1 shows that employees might be satisfied for all kinds of reasons. One person may be satisfied because she’s in a high- paying job and working for a good boss. Another person may be satisfied because he has good coworkers and enjoyable work tasks. You may have noticed that a few of the values in Table 4-1, such as working for moral causes and gaining fame and prestige, are not represented in Figure 4-1. Those values are missing because they’re not as relevant in all jobs, unlike pay, promotions, and so forth.
The first facet in Figure 4-1, pay satisfaction, refers to employees’ feelings about their pay, including whether it’s as much as they deserve, secure, and adequate for both normal expenses and luxury items.8 Similar to the other facets, pay satisfaction is based on a comparison of the pay that employees want and the pay they receive.9 Although more money is almost always better, most employees base their desired pay on a careful examination of their job duties and the pay given to comparable colleagues.10 As a result, even nonmillionaires can be quite satisfied with their pay (thankfully for most of us!). Take the employees at NuStar Energy, the San Antonio– based asphalt refiner and operator of oil pipelines storage.11 The company pays more than the industry average, with merit pay and equity grants for nonexecutives. And either everyone gets a bonus or no one does. Those sorts of pay policies make it more bearable to stand next to hot asphalt in a flame-retardant suit, hard hat, shatterproof glasses, and steel-toed boots!
The next facet in Figure 4-1, promotion satisfaction, refers to employees’ feelings about the com- pany’s promotion policies and their execution, including whether promotions are frequent, fair, and
FIGURE 4-1 The Value-Percept Theory of Job Satisfaction
Pay Satisfaction
Promotion Satisfaction
Supervision Satisfaction
Coworker Satisfaction
Satisfaction with the
Work Itself
(Promotionwant − Promotionhave) × Promotionimportance
(Supervisionwant − Supervisionhave) × Supervisionimportance
(Coworkerwant − Coworkerhave) × Coworkerimportance
(Workwant − Workhave) × Workimportance
(Paywant − Payhave) × Payimportance
OVERALL JOB
SATISFACTION
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based on ability.12 Unlike pay, some employees may not want frequent promotions because promo- tions bring more responsibility and increased work hours.13 However, many employees value promo- tions because they provide opportunities for more personal growth, a better wage, and more prestige. Nordstrom, the Seattle-based high-end retailer, does a good job fostering promotion satisfaction on the part of its employees. New sales clerks are often promoted within a year, with potential lead- ers put on the fast track with a six-month training program.14 Indeed, five of the nine members of Nordstrom’s executive committee started off on the sales floor. “Leadership is grounded in experi- ence,” notes one executive. “We want to make sure people get enough experiences to grow their career.”
Supervision satisfaction reflects employees’ feelings about their boss, including whether the boss is competent, polite, and a good communicator (rather than lazy, annoying, and too dis- tant).15 Most employees ask two questions about their supervisors: (1) “Can they help me attain the things that I value?” and (2) “Are they generally likable?”16 The first question depends on whether supervisors provide rewards for good performance, help employees obtain necessary resources, and protect employees from unnecessary distractions. The second question depends on whether supervisors have good personalities, as well as values and beliefs similar to the employ- ees’ philosophies. General Mills, the Minneapolis–based manufacturer of food products, works hard to foster a sense of supervision satisfaction. The company stresses leadership development courses at its General Mills Institute and rotates employees across jobs to broaden the experi- ences they bring to leadership roles.17 One manager describes the company’s culture this way, “I’ve noticed a manager three roles ago is still putting in good words for me, and still checking up on me. It’s something that’s common at General Mills, and something I’ve started to do as well.”
Coworker satisfaction refers to employees’ feelings about their fellow employees, including whether coworkers are smart, responsible, helpful, fun, and interesting as opposed to lazy, gossipy, unpleasant, and boring.18 Employees ask the same kinds of questions about their coworkers that they do about their supervisors: (1) “Can they help me do my job?” and (2) “Do I enjoy being around them?” The first question is critical because most of us rely, to some extent, on our coworkers when performing job tasks. The second question also is important because we spend just as much time with coworkers as we do with members of our own family. Coworkers who are pleasant and fun can make the workweek go much faster, whereas coworkers who are disrespectful and annoying can make even one day seem like an eternity. Perkins COIE, the Seattle–based law firm that represents Starbucks, Google, Microsoft, and Intel, fosters coworker satisfaction in an unusual—and downright sneaky—way. The firm encourages the creation of “happiness committees,” small groups within each department that perform random acts of kindness, like leaving gifts at an employee’s work station.19 The twist? The rosters of the happiness committees are kept secret from the rank-and-file.
The last facet in Figure 4-1, satisfaction with the work itself, reflects employees’ feelings about their actual work tasks, including whether those tasks are challenging, interesting, respected, and make use of key skills rather than being dull, repetitive, and uncomfortable.20 Whereas the previ- ous four facets described the outcomes that result from work (pay, promotions) and the people who surround work (supervisors, coworkers), this facet focuses on what employees actually do. After all, even the best boss or most interesting coworkers can’t compensate for 40 or 50 hours of complete boredom each week! How can employers instill a sense of satisfaction with the work itself? One way is to emphasize the most challenging and interesting parts of the job. At Dream- Works Animation, the Glendale, California–based studio, employees are encouraged to attend “Life’s a Pitch” workshops that allow them to hone their presentation skills.21 The company also helps employees flex their creative muscles by offering free drawing, sculpting, and improv classes. The CEO, Jeffrey Katzenberg, notes, “Our philosophy is that if you love your work, and you love coming to work, then the work will be exceptional.”
In summary, value-percept theory suggests that employees will be satisfied when they perceive that their job offers the pay, promotions, supervision, coworkers, and work tasks that they value. Of course, this theory begs the question: Which of those ingredients is most important? In other words, which of the five facets in Figure 4-1 has the strongest influence on overall job satisfaction? Several research studies have examined these issues and come up with the results shown in Figure 4-2. The figure depicts the correlation between each of the five satisfaction facets and an overall index of job satisfaction. (Recall that correlations of .10, .30, and .50 indicate weak, moderate, and strong relationships, respectively.)
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FIGURE 4-2 Correlations between Satisfaction Facets and Overall Job Satisfaction
Sources: G.H. Ironson, P.C. Smith, M.T. Brannick, W.M. Gibson, and K.B. Paul, “Construction of a Job in General Scale: A Comparison of Global, Composite, and Specific Measures,” Journal of Applied Psychology 74 (1989), pp. 193–200; and S.S. Russell, C. Spitzmuller, L.F. Lin, J.M. Stanton, P.C. Smith, and G.H. Ironson, “Shorter Can Also Be Better: The Abridged Job in General Scale,” Educational and Psychological Measurement 64 (2004), pp. 878–93.
Correlation with Overall Job Satisfaction
.00
.10
.20
.30
.40
.50
.60
.70
.80
Pay Promotion Supervision Coworker Work Itself
Specific Facets of Job Satisfaction
Represents a strong correlation (around .50 in magnitude).
Represents a moderate correlation (around .30 in magnitude).
Represents a weak correlation (around .10 in magnitude).
Figure 4-2 suggests that satisfaction with the work itself is the single strongest driver of overall job satisfaction.22 Supervision and coworker satisfaction are also strong drivers, and promotion and pay satisfaction have moderately strong effects. Why is satisfaction with the work itself so critical? Well, consider that a typical workweek contains around 2,400 minutes. How much of that time is spent thinking about how much money you make? 10 minutes? Maybe 20? The same is true for promotions—we may want them, but we don’t necessarily spend hours a day thinking about them. We do spend a significant chunk of that time with other people though. Between lunches, meetings, hallway chats, and other conversations, we might easily spend 600 minutes a week with supervisors and coworkers. That leaves almost 1,800 minutes for just us and our work. As a result, it’s hard to be satisfied with your job if you don’t like what you actually do. For a pic- ture of one bus driver’s job satisfaction, see our OB on Screen feature.
SAT I S FAC T I O N W I T H T H E WO R K I TS E L F Given how critical enjoyable work tasks are to overall job satisfaction, it’s worth spending more time describing the kinds of tasks that most people find enjoyable. Researchers began focusing on this question in the 1950s and 1960s, partly in reaction to practices based in the “scientific management” perspective. Scientific management focuses on increasing the efficiency of job tasks by making them more simplified and specialized and using time and motion studies to plan task
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OB ON SCREEN PATERSON
Awesome . . . a bus driver that likes Emily Dickinson.
With those words, a little girl summarizes the titular figure in Paterson (Dir. Jim Jarmusch, Amazon Studios). You see, Paterson (Adam Driver) works as a city bus driver in Paterson, New Jer- sey (yes, he has the same name as the town). Every day, Paterson follows the same routine. He wakes up next to his wife, Laura, goes to work, drives his route, comes home, has dinner, takes his bulldog Marvin for a walk, and has a beer at the local watering hole. When Laura (Golshifteh Farahani) asks how his day was one afternoon, Paterson politely responds, “Oh . . . the usual.”
We might expect Paterson to have low job satisfaction. He’s not paid all that well, as saving up for Laura’s guitar stretches their budget. His job doesn’t afford that much status, except to children in the town who view bus drivers with reverence. And his most oft-encountered coworker mostly just complains about whatever’s going on in his life. And yet, Paterson seems quite content—both during and after work. The nature of his job—and his work environment—gives him ample opportunities to pursue poetry. He can draw inspiration from those around him, ruminate on verses, and record them in his notebook during breaks by the waterfall.
Paterson’s contentment illustrates two things about job satisfaction (and happiness, in gen- eral). First, as value-percept theory illustrates, lacking things is only dissatisfying when those things are valued by the employee. Second, employees can compensate for any limitations of their jobs by deriving satisfaction from hobbies and side pursuits. Paterson clearly derives satisfaction from the fact that his poetry provides him with intellectual stimulation, utilization of ability, and creative expression. As a friendly stranger tells Paterson, “Sometimes an empty page presents more possibilities.”
©Moviestore collection Ltd/Alamy
movements and sequences carefully.23 The hope was that such steps would increase worker pro- ductivity and reduce the breadth of skills required to complete a job, ultimately improving orga- nizational profitability. Instead, the simplified and routine jobs tended to lower job satisfaction while increasing absenteeism and turnover.24 Put simply: Boring jobs may be easier, but they’re not necessarily better.
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So what kinds of work tasks are especially satisfying? Research suggests that three “critical psychological states” make work satisfying. The first psychological state is believing in the mean- ingfulness of work, which reflects the degree to which work tasks are viewed as something that “counts” in the employee’s system of philosophies and beliefs (see Chapter 6 on motivation for more discussion of such issues).25 Trivial tasks tend to be less satisfying than tasks that make employees feel like they’re aiding the organization or society in some meaningful way. For more on meaningfulness, see our OB at the Bookstore feature. The second psychological state is perceiv- ing responsibility for outcomes, which captures the degree to which employees feel that they’re key drivers of the quality of the unit’s work.26 Sometimes employees feel like their efforts don’t really matter because work outcomes are dictated by effective procedures, efficient technologies, or more influential colleagues. Finally, the third psychological state is knowledge of results, which reflects the extent to which employees know how well (or how poorly) they’re doing.27 Many employees work in jobs in which they never find out about their mistakes or notice times when they did particularly well.
Think about times when you felt especially proud of a job well done. At that moment, you were probably experiencing all three psychological states. You were aware of the result (after all, some job had been done well). You felt you were somehow responsible for that result (oth- erwise, why would you feel proud?). Finally, you felt that the result of the work was somehow meaningful (otherwise, why would you have remembered it just now?). The next obvious question then becomes, “What kinds of tasks create these psychological states?” Job characteristics theory, which describes the central characteristics of intrinsically satisfying jobs, attempts to answer this question. As shown in Figure 4-3, job characteristics theory argues that five core job character- istics (variety, identity, significance, autonomy, and feedback, which you can remember with the acronym “VISAF”) result in high levels of the three psychological states, making work tasks more satisfying.28
The first core job characteristic in Figure 4-3, variety, is the degree to which the job requires a number of different activities that involve a number of different skills and talents.29 When vari- ety is high, almost every workday is different in some way, and job holders rarely feel a sense of monotony or repetition.30 Of course, we could picture jobs that have a variety of boring tasks, such as screwing different sized nuts onto different colored bolts, but such jobs do not involve a number of different skills and talents.31
Evidence indicates that our preference for variety is hardwired into our brains. Research in psychiatry and neuroscience shows that the brain releases a chemical called dopamine whenever a novel stimulus (a new painting, a new meal, a new work challenge) is experienced, and we tend to find this dopamine release quite pleasurable. Unfortunately, the amount of dopamine present in our brains declines over our life spans. One neuroscientist therefore suggests that the best way to protect our dopamine system is through novel, challenging experiences, writing, “The sense of sat- isfaction after you’ve successfully handled unexpected tasks or sought out unfamiliar, physically and emotionally demanding activities is your brain’s signal that you’re doing what nature designed you to do.”32 Something to think about the next time you plan to order the same old thing at your favorite restaurant!
4.4 Which job characteristics can create a sense of satis- faction with the work itself?
Employees at DreamWorks Animation can express
their creativity at work in a number of ways, including
free drawing, sculpting, and improv classes, and
courses on honing their pitching and
presentation skills.
©Paul Sakuma/AP Images
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The second core job characteristic in Figure 4-3, identity, is the degree to which the job requires completing a whole, identifiable, piece of work from beginning to end with a visible outcome.33 When a job has high identity, employees can point to something and say, “There, I did that.” The transformation from inputs to finished product is very visible, and the employee feels a distinct sense of beginning and closure.34 Think about how you feel when you work for a while on some project but don’t quite get it finished—does that lack of closure bug you? If so, identity is an impor- tant concern for you.
Significance is the degree to which the job has a substantial impact on the lives of other people, particularly people in the world at large.35 Virtually any job can be important if it helps put food on the table for a family, send kids to college, or make employees feel like they’re doing their part for the working world. That said, significance as a core job characteristic captures something beyond that—the belief that this job really matters. When employees feel that their jobs are signifi- cant, they can see that others value what they do and they’re aware that their job has a positive impact on the people around them.36 There’s the sense that, if their job was taken away, society would be the worse for it.
OB AT THE BOOKSTORE THE POWER OF MEANING by Emily Esfahani Smith (New York, NY: Crown, 2017).
And yet, there is a major problem with the happiness frenzy: it has failed to deliver on its promise. Though the happiness industry continues to grow, as a society, we’re more miserable than ever. Indeed, social scientists have uncovered a sad irony—chasing happiness actually makes people unhappy.
With those words, Smith contrasts her book with the bevy of titles focused on living a satisfying life. Rather than focusing on hap- piness as an end in itself, Smith focuses on happiness as a byproduct of something else: meaning. Her background makes her uniquely qualified to write a book like this, with a bachelors in philosophy and a masters in positive psychology—the area of psychology dedi- cated to understanding human flourishing.
It turns out that the debate between happiness and meaning goes all the way back to classic literature and philosophy. For example, Aristotle distinguished between hedonia (feeling good) and eudai- monia (being and doing good). Today, psychologists study how the pursuit of happiness differs from the pursuit of meaning. For exam- ple, Smith reviews one study that instructed college students to either do things that made them happy (e.g., playing games, going shopping, eating sweets) or that added meaning (e.g., forgiving a
friend, helping others, reflecting on core values). Although the happiness activities boosted mood in the short term, the positive effects of the meaning activities lasted for months.
How can we add more meaning to our lives? Smith reviews four “pillars of meaning.” Under- scoring the importance of significance, the work itself, and altruism, one of those pillars is pur- pose. Pointing in part to the value of coworkers, another pillar is belongingness. As Smith notes, both pillars echo writings by the philosopher John Stuart Mill. “Those only are happy,” Mill wrote, “who have their minds fixed on some object other than their own happiness; on the hap- piness of others, on the improvement of mankind, even on some art or pursuit, followed not as a means, but as itself an ideal end. Aiming thus at something else, they find happiness by the way.”
©Roberts Publishing Services
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Autonomy is the degree to which the job provides freedom, independence, and discretion to the individual performing the work.37 When your job provides autonomy, you view the outcomes of it as the product of your efforts rather than the result of careful instructions from your boss or a well-written manual of procedures.38 Autonomy comes in multiple forms, including the freedom to control the timing, scheduling, and sequencing of work activities, as well as the procedures and methods used to complete work tasks.39 To many of us, high levels of autonomy are the difference between “having a long leash” and being “micromanaged.”
The last core job characteristic in Figure 4-3, feedback, is the degree to which carrying out the activities required by the job provides employees with clear information about how well they’re performing.40 A critical distinction must be noted: This core characteristic reflects feedback obtained directly from the job as opposed to feedback from coworkers or supervisors. Most employ- ees receive formal performance appraisals from their bosses, but that feedback occurs once or maybe twice a year. When the job provides its own feedback, that feedback can be experienced almost every day.
The passages in this section illustrate the potential importance of each of the five core charac- teristics. But how important are the core characteristics to satisfaction with the work itself? Meta- analyses of around 200 different research studies employing around 90,000 total participants
FIGURE 4-3 Job Characteristics Theory
Satisfaction with the
Work Itself
Identity
I
Variety
V
Significance
S
Autonomy
A
Feedback
F
Knowledge and Skill
Growth Need Strength
Meaningfulness of Work
Responsibility for Outcomes
Knowledge of Results
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showed that the five core job characteristics are moderately to strongly related to work satisfac- tion.41 However, those results don’t mean that every employee wants more variety, more autonomy, and so forth. The bottom of Figure 4-3 includes two other variables: knowledge and skill and growth need strength (which captures whether employees have strong needs for personal accom- plishment or developing themselves beyond where they currently are).42 In the jargon of theory diagrams, these variables are called “moderators.” Rather than directly affecting other variables in the diagram, moderators influence the strength of the relationships between variables. If employ- ees lack the required knowledge and skill or lack a desire for growth and development, more vari- ety and autonomy should not increase their satisfaction very much.43 However, when employees are very talented and feel a strong need for growth, the core job characteristics become even more powerful. A graphical depiction of this moderator effect appears in Figure 4-4, where you can see that the relationship between the core job characteristics and satisfaction becomes stronger when growth need strength increases.
Given how critical the five core job characteristics are to job satisfaction, many organiza- tions have employed job characteristics theory to help improve satisfaction among their employ- ees. The first step in this process is assessing the current level of the characteristics to arrive at a “satisfaction potential score.” See our OB Assessments feature for more about that step. The organization, together with job design consultants, then attempts to redesign aspects of the job to increase the core job characteristic levels. Often this step results in job enrichment, such that the duties and responsibilities associated with a job are expanded to provide more variety, identity, autonomy, and so forth. Research suggests that such enrichment efforts can indeed boost job satisfaction levels.44 Moreover, enrichment efforts can heighten work accu- racy and customer satisfaction, though training and labor costs tend to rise as a result of such changes.45 However, employees needn’t necessarily wait for enrichment efforts to improve levels of the core job characteristics. Many employees can engage in job crafting, where they shape, mold, and redefine their jobs in a proactive way.46 For example, they might alter the boundaries of their jobs by switching certain tasks, they might change specific collaborative relationships, or they might reenvison how they view their work, relative to the broader context of the organi- zation’s mission.
4.5 How is job satisfaction affected by day-to-day events?
Despite the need for discipline and practice, the job of a jazz musician is one with a high degree of autonomy.
©Nick White/Getty Images
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FIGURE 4-4 Growth Need Strength as a Moderator of Job Characteristic Effects
Source: Adapted from B.T. Loher, R.A. Noe, N.L. Moeller, and M.P. Fitzgerald, “A Meta-Analysis of the Relation of Job Characteristics to Job Satisfaction,” Journal of Applied Psychology 70 (1985), pp. 280–89.
Satisfaction with the
Work Itself
Levels of the Five Core Job Characteristics Low High
High Growth Need Strength
Low Growth Need Strength
M O O D A N D E M OT I O N S Let’s say you’re a satisfied employee, maybe because you get paid well and work for a good boss or because your work tasks provide you with variety and autonomy. Does this mean you’ll defi- nitely be satisfied at 11:00 a.m. next Tuesday? Or 2:30 p.m. the following Thursday? Obviously it doesn’t. Each employee’s satisfaction levels fluctuate over time, rising and falling like some sort of emotional stock market. This fluctuation might seem strange, given that people’s pay, supervisors, coworkers, and work tasks don’t change from one hour to the next. The key lies in remembering that job satisfaction reflects what you think and feel about your job. So part of it is rational, based on a careful appraisal of the job and the things it supplies. But another part of it is emotional, based on what you feel “in your gut” while you’re at work or thinking about work. So satisfied employees feel good about their job on average, but things happen during the course of the day to make them feel better at some times (and worse at others).
Figure 4-5 illustrates the satisfaction levels for one employee during the course of a workday, from around 9:00 a.m. to 5:00 p.m. You can see that this employee did a number of different things during the day, from answering e-mails to eating lunch with friends to participating in a brainstorming meeting regarding a new project. You can also see that the employee came into the day feeling relatively satisfied, though satisfaction levels had several ebbs and flows during the next eight hours. What’s responsible for those ebbs and flows in satisfaction levels? Two related concepts: mood and emotions.
What kind of mood are you in right now? Good? Bad? Somewhere in between? Why are you in that kind of mood? Do you really even know? (If it’s a bad mood, we hope it has nothing to do with this book!) Moods are states of feeling that are often mild in intensity, last for an extended period of time, and are not explicitly directed at or caused by anything.47 When people are in a good or bad mood, they don’t always know who (or what) deserves the credit or blame; they just happen to be feeling that way for a stretch of their day. Of course, it would be oversimplifying things to call all moods either good or bad. Sometimes we’re in a serene mood; sometimes we’re in an enthusias- tic mood. Both are “good” but obviously feel quite different. Similarly, sometimes we’re in a bored mood; sometimes we’re in a hostile mood. Both are “bad” but, again, feel quite different.
4.6 What are mood and emo- tions, and what specific forms do they take?
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OB ASSESSMENTS
CORE JOB CHARACTERISTICS How satisfying are your work tasks? This assessment is designed to measure the five core job characteristics. Think of your current job or the last job that you held (even if it was a part-time or summer job). Answer each question using the response scale provided. Then use the formula to compute a satisfaction potential score (SPS). (Instructors: Assessments on growth need strength, emotional labor, flow, and positive emotionality can be found in the PowerPoints in the Connect Library’s Instructor Resources and in the Connect assignments for this chapter.)
1 VERY
INACCURATE
2 MOSTLY
INACCURATE
3 SLIGHTLY
INACCURATE
4 UNCERTAIN
5 SLIGHTLY
ACCURATE
6 MOSTLY
ACCURATE
7 VERY
ACCURATE
V1. The job causes me to draw on a number of different skills. _______
V2. The job has a diverse set of tasks associated with it. _______
I1. The job allows me to both start and finish something. _______
I2. I can see the end product of my work in this job. _______
S1. The job affects a lot of people, even beyond my organization. _______
S2. The job itself is significant in a societal sense. _______
A1. I can use my own judgment in how I carry out the job. _______
A2. The job gives me a lot of freedom and discretion. _______
F1. The mere act of doing the job shows me how well I’m doing. _______
F2. It’s easy to know how well I’m doing, just from performing the job. _______
SPS V1+V2+I1+I2+S1+S2
6 A1+A2 F1+F2
2 = × ×
2
SPS = ×× 6 2 2
SPS = × =×
Sources: J.R. Hackman and G.R. Oldham, The Job Diagnostic Survey: An Instrument for the Diagnosis of Jobs and the Evaluation of Job Redesign Projects (New Haven, CT: Yale University, 1974); and J.R. Idaszak and F. Drasgow, “A Revision of the Job Diagnostic Survey: Elimination of a Measurement Artifact,” Journal of Applied Psychology 72 (1987), pp. 69–74.
SCORING AND INTERPRETATION If your score is 150 or above, your work tasks tend to be satisfying and enjoyable. If your score is less than 150, you might benefit from trying to “craft” your job by taking on more challenging assignments and collaborations, or reenvisioning the way your job fits into the organization’s mission.
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It turns out that there are a number of different moods that we might experience during the workday. Figure 4-6 summarizes the different moods in which people sometimes find themselves. The figure illustrates that moods can be categorized in two ways: pleasantness and activation. First, the horizontal axis of the figure reflects whether you feel pleasant (in a “good mood”) or unpleas- ant (in a “bad mood”).48 The figure uses green colors to illustrate pleasant moods and red colors to illustrate unpleasant moods. Second, the vertical axis of the figure reflects whether you feel activated and aroused or deactivated and unaroused.49 The figure uses darker colors to convey higher levels of activation and lighter colors to convey lower levels. Note that some moods are neither good nor bad. For example, being surprised or astonished (high activation) and quiet or still (low activation) are neither pleasant nor unpleasant. As a result, those latter moods are left colorless in Figure 4-6.
Figure 4-6 illustrates that the most intense positive mood is characterized by feeling enthusi- astic, excited, and elated. When employees feel this way, coworkers are likely to remark, “Wow, you’re sure in a good mood!” In contrast, the most intense negative mood is characterized by feel- ing hostile, nervous, and annoyed. This kind of mood often triggers the question, “Wow, what’s gotten you in such a bad mood?” If we return to our chart of hour-by-hour job satisfaction in Figure 4-5, what kind of mood do you think the employee was in while answering e-mails? Prob- ably a happy, cheerful, and pleased mood. What kind of mood was the employee in during the informal meeting on the long-running project? Probably a grouchy, sad, and blue mood. Finally, what kind of mood do you think the employee was in during the brainstorming meeting for the
FIGURE 4-5 Hour-by-Hour Fluctuations in Job Satisfaction during the Workday
Funny conversation
with friend
Read annoying
e-mail from boss Left lunch
to return to work
Realizes how interesting and challenging
new project will be
Phone call saying
paperwork is overdue
D is
sa tis
fie d
S a
tis fie
d
H o
u r-
b y-
H o
u r
S a
ti sf
a ct
io n
L e
ve l
N e
u tr
a l
Answering e-mails
Informal meeting on long-running
project
Preparation and research
for new project
Brainstorming meeting for new
project
Eating lunch with three
friends
Completing paperwork and filing
10:00 11:00 12:00 1:00 2:00 3:00 4:00 5:009:00
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new project? Clearly, an enthusiastic, excited, and elated mood. This employee would report espe- cially high levels of job satisfaction at this point in time.
Some organizations take creative steps to foster positive moods among their employees. For example, Quicken Loans, the Detroit–based online lender, provides Razor scooters to help team members go from place to place inside their headquarters.50 Many of those places are adorned with scratch-and-sniff wallpaper and graffiti created by local artists. Or consider these offerings by Booz Allen Hamilton, the McLean, Virginia–based consulting firm. Employees can participate in ice cream socials, pet photo contests, and hula lessons.51 Such perks may not rival the importance of pay, promotions, supervision, coworkers, and the work itself as far as job satisfaction is con- cerned, but they can help boost employees’ moods during a particular workday.
Although novel and unusual perks can be valuable, the most intense forms of positive mood often come directly from work activities, like the brainstorming project in Figure 4-5. Research suggests that two conditions are critical to triggering intense positive mood. First, the activity in question has to be challenging. Second, the employee must possess the unique skills needed to meet that challenge. That high challenge–high skill combination can result in flow—a state in which employees feel a total immersion in the task at hand, sometimes losing track of how much time has passed.52 People often describe flow as being “in the zone” and report heightened states of clarity, control, and concentration, along with a sense of enjoyment, interest, and loss of self-consciousness.53 Although you may have experienced flow during leisure activities, such as
FIGURE 4-6 Different Kinds of Mood
Sources: Adapted from D. Watson and A. Tellegen, “Toward a Consensual Structure of Mood,” Psychological Bulletin 98 (1985), pp. 219–35; J.A. Russell, “A Circumplex Model of Affect,” Journal of Personality and Social Psychology 39 (1980), pp. 1161–78; and R.J. Larsen and E. Diener, “Promises and Problems with the Circumplex Model of Emotion,” in Review of Personality and Social Psychology: Emotion, Vol. 13, ed. M.S. Clark (Newbury Park, CA: Sage, 1992), pp. 25–59.
Intense Positive Mood
Activated
Deactivated
Pleasant Unpleasant
Surprised Astonished
Aroused
Quiet Still
Inactive
Happy Cheerful Pleased
Grouchy Sad Blue
Hostile Nervous Annoyed
Enthusiastic Excited Elated
Bored Sluggish Drowsy
Serene Calm
Content
Intense Negative
Mood
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playing sports or making music, research suggests that we experience flow more often in our work- ing lives. Much of our leisure time is spent in passive recreation, such as watching TV or chatting with friends, that lacks the challenge needed to trigger flow states. Work tasks, in contrast, may supply the sorts of challenges that require concentration and immersion—particularly when those tasks contain high levels of variety, significance, autonomy, and so forth (see Chapter 6 on motiva- tion for more discussion of such issues).
Returning to Figure 4-5, it’s clear that specific events triggered variations in satisfaction levels. According to affective events theory, workplace events can generate affective reactions—reactions that then can go on to influence work attitudes and behaviors.54 Workplace events include happenings, like an annoying e-mail from a boss or a funny conversation with a friend, that are relevant to an employee’s general desires and concerns. These events can trigger emotions, which are states of feel- ing that are often intense, last for only a few minutes, and are clearly directed at (and caused by) someone or some circumstance. The difference between moods and emotions becomes clear in the way we describe them to others. We describe moods by saying, “I’m feeling grouchy,” but we describe emotions by saying, “I’m feeling angry at my boss.”55 According to affective events theory, these emo- tions can create the ebb and flow in satisfaction levels in Figure 4-5 and can also trigger spontaneous behaviors.56 For example, positive emotions may trigger spontaneous instances of citizenship behav- ior, whereas negative emotions may trigger spontaneous instances of counterproductive behavior.
As with mood, it’s possible to differentiate between specific examples of positive and nega- tive emotions. Table 4-2 provides a summary of many of the most important.57 Positive emotions include joy, pride, relief, hope, love, and compassion. Negative emotions include anger, anxiety, fear, guilt, shame, sadness, envy, and disgust. What emotion do you think the employee experi- enced in Figure 4-5 when reading a disrespectful e-mail from the boss? Probably anger. What emotion do you think that same employee enjoyed during a funny conversation with a friend? Possibly joy, or maybe relief that lunch had arrived and a somewhat bad day was halfway over. Leaving lunch to return to work might have triggered either anxiety (because the bad day might resume) or sadness (because the fun time with friends had ended). Luckily, the employee’s sense of joy at taking on a new project that was interesting and challenging was right around the
TABLE 4-2 Different Kinds of Emotions
POSITIVE EMOTIONS DESCRIPTION
Joy A feeling of great pleasure
Pride Enhancement of identity by taking credit for achievement
Relief A distressing condition has changed for the better
Hope Fearing the worst but wanting better
Love Desiring or participating in affection
Compassion Being moved by another’s situation
NEGATIVE EMOTIONS
Anger A demeaning offense against me and mine
Anxiety Facing an uncertain or vague threat
Fear Facing an immediate and concrete danger
Guilt Having broken a moral code
Shame Failing to live up to your ideal self
Sadness Having experienced an irreversible loss
Envy Wanting what someone else has
Disgust Revulsion aroused by something offensive
Source: Adapted from R.S. Lazarus, Emotion and Adaptation (New York: Oxford University, 1991).
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corner. The day did end on a down note, however, as the phone call signaling overdue paperwork was likely met with some mix of anger, fear, guilt, or even disgust (no one likes paperwork!).
Of course, just because employees feel many of the emotions in Table 4-2 during the workday doesn’t mean they’re supposed to show those emotions. Some jobs demand that employees live up to the adage “never let ’em see you sweat.” In particular, service jobs in which employees make direct contact with customers often require those employees to hide any anger, anxiety, sadness, or disgust that they may feel, suppressing the urge to spontaneously engage in some negative behavior. Such jobs are high in what’s called emotional labor, or the need to manage emotions to complete job duties successfully.58 Flight attendants are trained to “put on a happy face” in front of passengers, retail salespeople are trained to suppress any annoyance with customers, and res- taurant servers are trained to act like they’re having fun on their job even when they’re not.
Is it a good idea to require emotional labor on the part of employees? Research on emotional contagion shows that one person can “catch” or “be infected by” the emotions of another per- son.59 If a customer service representative is angry or sad, those negative emotions can be trans- ferred to a customer (like a cold or disease). If that transfer occurs, it becomes less likely that customers will view the experience favorably and spend money, which potentially harms the bot- tom line. From this perspective, emotional labor seems like a vital part of good customer service. Unfortunately, other evidence suggests that emotional labor places great strain on employees and that their “bottled up” emotions may end up bubbling over, sometimes resulting in angry outbursts against customers or emotional exhaustion and burnout on the part of employees (see Chapter 5 on stress for more discussion of such issues).60
S U M M A RY: W H Y A R E S O M E E M P LOY E E S M O R E SAT I S F I E D T H A N OT H E R S ? So what explains why some employees are more satisfied than others? As we show in Figure 4-7, answering that question requires paying attention to the more rational appraisals people make about their job and the things it supplies for them, such as pay, promotions, supervision, coworkers, and the work itself. Satisfaction with the work itself, in turn, is affected by the five core job characteristics: variety, identity, significance, autonomy, and feedback. However, answering that question also requires paying attention to daily fluctuations in how people feel, in terms of their positive and negative moods and positive and negative emotions. In this way, a generally satisfied employee may act unhappy at a given moment, just as a generally dissatisfied employee may act happy at a given moment. Under- standing those sorts of fluctuations can help managers separate long-term problems (boring tasks, incompetent coworkers) from more short-lived issues (a bad meeting, an annoying interaction).
H O W I M P O R TA N T I S J O B S AT I S FAC T I O N ?
Several factors influence an employee’s job satisfaction, from pay to coworkers to job tasks to day-to-day moods and emotions. Of course, the most obvious remaining question is, “Does job sat- isfaction really matter?” More precisely, does job satisfaction have a significant impact on job per- formance and organizational commitment—the two primary outcomes in our integrative model of OB? Figure 4-8 summarizes the research evidence linking job satisfaction to job performance and organizational commitment. This same sort of figure will appear in each of the remaining chapters of this book, so that you can get a better feel for which of the concepts in our integrative model has the strongest impact on performance and commitment.
Figure 4-8 reveals that job satisfaction does predict job performance. Why? One reason is that job satisfaction is moderately correlated with task performance. Satisfied employees do a better job of fulfilling the duties described in their job descriptions,61 and evidence suggests that positive feelings foster creativity,62 improve problem solving and decision making,63 and enhance memory and recall of certain kinds of information.64 Positive feelings also improve task persistence and attract more help and support from colleagues.65 Apart from these sorts of findings, the benefits of job satisfac- tion for task performance might best be explained on an hour-by-hour basis. At any given moment,
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employees wage a war between paying attention to a given work task and attending to “off-task” things, such as stray thoughts, distractions, interruptions, and so forth. Positive feelings when work- ing on job tasks can pull attention away from those distractions and channel people’s attention to task accomplishment.66 When such concentration occurs, an employee is more focused on work at a given point in time. Of course, the relationship between satisfaction and task performance can work in reverse to some extent, such that people tend to enjoy jobs that they can perform more success- fully.67 Meta-analyses tend to be less supportive of this causal direction, however.68
Job satisfaction also is correlated moderately with citizenship behavior. Satisfied employees engage in more frequent “extra mile” behaviors to help their coworkers and their organization.69 Positive feelings increase their desire to interact with others and often result in spontaneous acts of helping and other instances of good citizenship.70 In addition, job satisfaction has a moderate negative correlation with counterproductive behavior. Satisfied employees engage in fewer inten- tionally destructive actions that could harm their workplace.71 Events that trigger negative emo- tions can prompt employees to “lash out” against the organization by engaging in rule breaking,
FIGURE 4-7 Why Are Some Employees More Satisfied Than Others?
Satisfaction with the
Work Itself
Pay Satisfaction
Promotion Satisfaction
Supervision Satisfaction
Coworker Satisfaction
D A
IL Y
F LU
C T
U A
T IO
N S
IN F
E E
LI N
G S
R A
T IO
N A
L A
P P
R A
IS A
L O
F J
O B
Positive Mood
Negative Mood
Positive Emotions
Negative Emotions
Identity I
Variety V
Signific- ance
S
Autonomy A
Feedback F
OVERALL JOB
SATISFACTION
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theft, sabotage, or other retaliatory behaviors.72 The more satisfied employees are, the less likely they’ll feel those sorts of temptations.
Figure 4-8 also reveals that job satisfaction influences organizational commitment. Why? Job satisfaction is strongly correlated with affective commitment, so satisfied employees are more likely to want to stay with the organization.73 After all, why would employees want to leave a place where they’re happy? Another reason is that job satisfaction is strongly correlated with normative commitment. Satisfied employees are more likely to feel an obligation to remain with their firm74 and a need to “repay” the organization for whatever it is that makes them so satisfied, whether good pay, interesting job tasks, or effective supervision. However, job satisfaction is uncorrelated with continuance commitment, because satisfaction does not create a cost-based need to remain with the organization. Taken together, these commitment effects become more apparent when you consider the kinds of employees who withdraw from the organization. In many cases, dis- satisfied employees are the ones who sit daydreaming at their desks, come in late, are frequently absent, and eventually decide to quit their jobs.
L I F E SAT I S FAC T I O N Of course, job satisfaction is important for other reasons as well—reasons that have little to do with job performance or organizational commitment. For example, job satisfaction is strongly related to life satisfaction, or the degree to which employees feel a sense of happiness with their lives. Research shows that job satisfaction is one of the strongest predictors of life satisfaction.
4.7 How does job satisfaction affect job performance and organizational commit- ment? How does it affect life satisfaction?
FIGURE 4-8 Effects of Job Satisfaction on Performance and Commitment
Sources: A. Cooper-Hakim and C. Viswesvaran, “The Construct of Work Commitment: Testing an Integrative Framework,” Psychological Bulletin 131 (2005), pp. 241–59; R.S. Dalal, “A Meta-Analysis of the Relationship between Organizational Citizen- ship Behavior and Counterproductive Work Behavior,” Journal of Applied Psychology 90 (2005), pp. 1241–55; D.A. Harrison, D.A. Newman, and P.L. Roth, “How Important Are Job Attitudes? Meta-Analytic Comparisons of Integrative Behavioral Out- comes and Time Sequences,” Academy of Management Journal 49 (2006), pp. 305–25; T.A. Judge, C.J. Thoreson, J.E. Bono, and G.K. Patton, “The Job Satisfaction–Job Performance Relationship: A Qualitative and Quantitative Review,” Psychological Bulletin 127 (2001), pp. 376–407; J.A. LePine, A. Erez, and D.E. Johnson, “The Nature and Dimensionality of Organizational Citizenship Behavior: A Critical Review and Meta-Analysis,” Journal of Applied Psychology 87 (2002), pp. 52–65; and J.P. Meyer, D.J. Stanley, L. Herscovitch, and L. Topolnytsky, “Affective, Continuance, and Normative Commitment to the Organi- zation: A Meta-Analysis of Antecedents, Correlates, and Consequences,” Journal of Vocational Behavior 61 (2002), pp. 20–52.
Job Satisfaction has a moderate positive e�ect on Job Performance. People who experience higher levels of job satisfaction tend to have higher levels of Task Performance, higher levels of Citizenship Behavior, and lower levels of Counterproductive Behavior.
Job Satisfaction has a strong positive e�ect on Organizational Commitment. People who experience higher levels of job satisfaction tend to feel higher levels of A�ective Commitment and higher levels of Normative Commitment. E�ects on Continuance Commitment are weaker.
Represents a strong correlation (around .50 in magnitude).
Represents a moderate correlation (around .30 in magnitude).
Represents a weak correlation (around .10 in magnitude).
Job Satisfaction
Job Performance
Job Satisfaction
Organizational Commitment
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Put simply, people feel better about their lives when they feel better about their jobs.75 This link makes sense when you realize how much of our identity is wrapped up in our jobs. What’s the first question that people ask one another after being introduced? That’s right—“What do you do?” If you feel bad about your answer to that question, it’s hard to feel good about your life.
The connection between job satisfaction and life satisfaction also makes sense given how much of our lives are spent at work. Table 4-3 presents the results of one study that examines time spent on daily activities, along with reported levels of positive and negative feelings during the course of those activities.76 The participants in the study spent most of their day at work. Unfortunately, that time resulted in the highest levels of negative feelings and the second-lowest levels of positive feel- ings (behind only commuting). Home and leisure activities (e.g., socializing, relaxing, exercising, intimate relations) were deemed much more satisfying but took up a much smaller portion of the day. The implication is clear: If we want to feel better about our days, we need to find a way to be more satisfied with our jobs.
Indeed, increases in job satisfaction have a stronger impact on life satisfaction than do increases in salary or income. It turns out that the adage “money can’t buy happiness” is partially true. Research suggests that life satisfaction increases with one’s salary up to a level of around $75,000 per year. After that, more money doesn’t seem to bring more happiness.77 Such findings may seem surprising, given that pay satisfaction is one facet of overall job satisfaction (see Figure 4-1). However, you might recall that pay satisfaction is a weaker driver of overall job satisfaction than other facets, such as the work itself, supervision, or coworkers (see Figure 4-2). For more on the relationship between money and happiness, see our OB Internationally feature.
TABLE 4-3 How We Spend Our Days
ACTIVITY AVERAGE HOURS
PER DAY POSITIVE FEELINGS
NEGATIVE FEELINGS
Working 6.9 3.62 0.97
On the phone 2.5 3.92 0.85
Socializing 2.3 4.59 0.57
Eating 2.2 4.34 0.59
Relaxing 2.2 4.42 0.51
Watching TV 2.2 4.19 0.58
Computer/e-mail/Internet 1.9 3.81 0.80
Commuting 1.6 3.45 0.89
Housework 1.1 3.73 0.77
Interacting with kids 1.1 3.86 0.91
Napping 0.9 3.87 0.60
Praying/meditating 0.4 4.35 0.59
Exercising 0.2 4.31 0.50
Intimate relations 0.2 5.10 0.36
Source: Positive and negative feelings measured using a scale of 0 (not at all) to 6 (very much). From D. Kahneman, A.B. Krueger, D .A. Schkade, N. Schwarz, and A.A. Stone, “A Survey Method for Characterizing Daily Life Experience: The Day Reconstruction Method,” Science 306 (2004), pp. 1776–80.
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A P P L I C AT I O N : T R AC K I N G S AT I S FAC T I O N
Because job satisfaction seems to be a key driver of job performance, organizational commitment, and life satisfaction, it’s important for managers to understand just how satisfied their employees are. Several methods assess the job satisfaction of rank-and-file employees, including focus groups,
4.8 What steps can organiza- tions take to assess and manage job satisfaction?
The “money can’t buy happiness” adage can even be supported using nation-level data. For exam- ple, survey data in the United States, Britain, and Japan show that people are no happier today than they were 50 years ago, even though average incomes have more than doubled during that span.
Comparing countries reveals that nations above the poverty line are indeed happier than nations below the poverty line. However, once that poverty threshold gets crossed, additional income is not associated with higher levels of life satisfaction. For example, the United States is the richest country on earth, but it trails nations like the Netherlands and Ireland in life satisfac- tion. Understanding differences in life satisfaction across nations is important to organizations for two reasons. First, such differences may influence how receptive a given nation is to the com- pany’s products. Second, such differences may affect the kinds of policies and practices an organi- zation needs to use when employing individuals in that nation.
OB INTERNATIONALLY
Source: R. Layard, qtd. in Diener, E., and E. Suh. “National Differences in Subjective Well-Being.” In Well-Being: The Foundations of Hedonic Psychology, ed. D. Kahneman, E. Diener, and N. Schwarz. New York: Russell Sage Foundation, 1999, pp. 434–50.
A ve
ra g
e P
e rc
e n
ta g
e “
H a
p p
y”
Average Yearly Salary per Citizen
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000
30
40
50
60
70
80
90
100
USA
Norway
Canada
Netherlands
Australia
Britain France
Germany
Italy JapanIsrael
Spain
S. Korea
Ireland
Russia
Zimbabwe
Pakistan
India Iran
Poland
MexicoColombia
Indonesia
Brazil
Egypt
China
Romania
Turkey
S. Africa
Vietnam
Venezuela
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TABLE 4-4 Excerpts from the Job Descriptive Index and the Job in General Scale
Think of the work you do at present. How well does each of the following words or phrases describe your work? In the blank beside each word or phrase below, write Y for “Yes” if it describes your work N for “No” if it does NOT describe it ? for “?” if you cannot decide
Pay Satisfactiona
_____ Well-paid _____ Bad _____ Barely live on income
Coworker Satisfactiona
_____ Stimulating _____ Smart _____ Unpleasant
Promotion Satisfactiona
_____ Regular promotions _____ Promotion on ability _____ Opportunities somewhat limited
Satisfaction with Work Itselfa
_____ Fascinating _____ Pleasant _____ Can see my results
Supervision Satisfactiona
_____ Knows job well _____ Around when needed _____ Doesn’t supervise enough
OVERALL JOB SATISFACTIONb
_____ Better than most _____ Worthwhile _____ Worse than most
a The Job Descriptive Index, © Bowling Green State University (1975, 1985, 1997). b The Job in General Scale, © Bowling Green State University (1982, 1985).
Source: W.K. Balzer, J.A. Kihn, P.C. Smith, J.L. Irwin, P.D. Bachiochi, C. Robie, E.F. Sinar, amp; L.F. Parra, 2000, “Users Manual for the Job Descriptive Index (JDI; 1997 version) and the Job in General Scales.” In J.N. Stanton amp; C.D. Crossley (ed.), Electronic Resources for the JDI and JIG. Bowling Green, OH, Bowling Green State University.
interviews, and attitude surveys. Of those three choices, attitude surveys are often the most accu- rate and most effective.78 Attitude surveys can provide a “snapshot” of how satisfied the workforce is and, if repeated over time, reveal trends in satisfaction levels. They also can explore the effective- ness of major job changes by comparing attitude survey results before and after a change.
Although organizations are often tempted to design their own attitude surveys, there are ben- efits to using existing surveys that are already in wide use. One of the most widely administered job satisfaction surveys is the Job Descriptive Index (JDI). The JDI assesses all five satisfaction facets in Figure 4-1: pay satisfaction, promotion satisfaction, supervisor satisfaction, coworker satisfaction, and satisfaction with the work itself. The JDI also has been subjected to a great deal of research attention that, by and large, supports its accuracy.79 Furthermore, the JDI includes a companion survey—the Job in General (JIG) scale—that assesses overall job satisfaction.80 Excerpts from the JDI and JIG appear in Table 4-4.81 One strength of the JDI is that the questions are written in a very simple and straightforward fashion so that they can be easily understood by most employees.
The developers of the JDI offer several suggestions regarding its administration.82 For example, they recommend surveying as much of the company as possible because any unsurveyed employ- ees might feel that their feelings are less important. They also recommend that surveys be anony- mous so that employees can be as honest as possible without worrying about being punished for any critical comments about the organization. Therefore, companies must be careful in collecting demographic information on the surveys. Some demographic information is vital for comparing satisfaction levels across relevant groups, but too much information will make employees feel like they could be identified. Finally, the developers suggest that the survey should be administered by the firm’s human resources group or an outside consulting agency. This structure will help employees feel that their anonymity is more protected.
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Once JDI data have been collected, a number of interesting questions can be explored.83 First, the data can indicate whether the organization is satisfied or dissatisfied by comparing average scores for each facet with the JDI’s “neutral levels” for those facets (the “neutral levels” are avail- able in the JDI manual). Second, it becomes possible to compare the organization’s scores with national norms to provide some context for the firm’s satisfaction levels. The JDI manual also provides national norms for all facets and breaks down those norms according to relevant demo- graphic groups (e.g., managers vs. nonmanagers, new vs. senior employees, gender, education). Third, the JDI allows for within-organization comparisons to determine which departments have the highest satisfaction levels and which have the lowest.
The results of attitude survey efforts should then be fed back to employees so that they feel involved in the process. Of course, attitude surveys ideally should be a catalyst for some kind of improvement effort.84 Surveys that never lead to any kind of on-the-job change eventually may be viewed as a waste of time. As a result, the organization should be prepared to react to the survey results with specific goals and action steps. For example, an organization with low pay satisfaction may react by conducting additional benchmarking to see whether compensation levels are trailing those of competitors. An organization with low promotion satisfaction might react by revising its system for assessing performance. Finally, an organization that struggles with satisfaction with the work itself could attempt to redesign key job tasks or, if that proves too costly, train supervisors in strategies for increasing the five core job characteristics on a more informal basis.
4.1 Job satisfaction is a pleasurable emotional state resulting from the appraisal of one’s job or job experiences. It represents how you feel about your job and what you think about your job.
4.2 Values are things that people consciously or subconsciously want to seek or attain. Accord- ing to value-percept theory, job satisfaction depends on whether you perceive that your job supplies those things that you value.
4.3 Employees consider a number of specific facets when evaluating their job satisfaction. These facets include pay satisfaction, promotion satisfaction, supervision satisfaction, coworker satisfaction, and satisfaction with the work itself.
4.4 Job characteristics theory suggests that five “core characteristics”—variety, identity, signifi- cance, autonomy, and feedback—combine to result in particularly high levels of satisfaction with the work itself.
4.5 Apart from the influence of supervision, coworkers, pay, and the work itself, job satisfaction levels fluctuate during the course of the day. Rises and falls in job satisfaction are triggered by positive and negative events that are experienced. Those events trigger changes in emo- tions that eventually give way to changes in mood.
4.6 Moods are states of feeling that are often mild in intensity, last for an extended period of time, and are not explicitly directed at anything. Intense positive moods include being enthusiastic, excited, and elated. Intense negative moods include being hostile, nervous, and annoyed. Emotions are states of feeling that are often intense, last only for a few minutes, and are clearly directed at someone or some circumstance. Positive emotions include joy, pride, relief, hope, love, and compassion. Negative emotions include anger, anxiety, fear, guilt, shame, sadness, envy, and disgust.
TA K E AWAY S
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K E Y T E R M S
• Job satisfaction p. 94 • Values p. 94 • Value-percept theory p. 94 • Pay satisfaction p. 96 • Promotion satisfaction p. 96 • Supervision satisfaction p. 97 • Coworker satisfaction p. 97 • Satisfaction with the work itself p. 97 • Meaningfulness of work p. 100 • Responsibility for outcomes p. 100 • Knowledge of results p. 100 • Job characteristics theory p. 100 • Variety p. 100 • Identity p. 101 • Significance p. 101 • Autonomy p. 102
• Feedback p. 102 • Knowledge and skill p. 103 • Growth need strength p. 103 • Job enrichment p. 103 • Job crafting p. 103 • Moods p. 104 • Pleasantness p. 106 • Activation p. 106 • Flow p. 107 • Affective events theory p. 108 • Emotions p. 108 • Positive emotions p. 108 • Negative emotions p. 108 • Emotional labor p. 109 • Emotional contagion p. 109 • Life satisfaction p. 111
4.1 Which of the values in Table 4-1 do you think are the most important to employees in general? Are there times when the values in the last three categories (altruism, status, and environment) become more important than the values in the first five categories (pay, pro- motions, supervision, coworkers, and the work itself)?
4.2 What steps can organizations take to improve promotion satisfaction, supervision satisfac- tion, and coworker satisfaction?
4.3 Consider the five core job characteristics (variety, identity, significance, autonomy, and feed- back). Do you think that any one of those characteristics is more important than the other four? Is it possible to have too much of some job characteristics?
4.4 We sometimes describe colleagues or friends as “moody.” What do you think it means to be “moody” from the perspective of Figure 4-6?
4.5 Consider the list of positive and negative emotions in Table 4-2. Which of these emotions are most frequently experienced at work? What causes them?
D I S C U S S I O N Q U E S T I O N S
4.7 Job satisfaction has a moderate positive relationship with job performance and a strong positive relationship with organizational commitment. It also has a strong positive relation- ship with life satisfaction.
4.8 Organizations can assess and manage job satisfaction using attitude surveys such as the Job Descriptive Index (JDI), which assesses pay satisfaction, promotion satisfaction, supervision satisfaction, coworker satisfaction, and satisfaction with the work itself. It can be used to assess the levels of job satisfaction experienced by employees, and its specific facet scores can identify interventions that could be helpful.
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George Jenkins started Publix’s employee stock ownership plan in 1974. Employees who work more than 1,000 hours and have one year of tenure are granted shares that have an initial value around 10 percent of annual compensation. Employees then receive additional grants each year for as long as they stay, while having the option to purchase additional stock with an automatic deduction from their paychecks. Since 1974, Publix’s stock has delivered an average annual return of almost 17 percent. To get a sense of what that means during a career, a veteran store manager with 20,000 shares would have over $900,000 in stock.
Publix’s stock ownership plan has helped it become the largest employee-owned company in the world (it sits at 101 in the Fortune 500). That level of ownership is one reason that employ- ees are termed “associates”—to signify that they are co-owners of the firm. Even the company’s promotion-from-within policy is referred to as “succession planning,” a term typically only used with top executives. One manager notes that jargon is used to show that “no associate is better or more important than the others.” The ownership structure also gives the company a bit more freedom to chart its own course. “I’m amazed that more companies don’t offer ownership in the company in order to get better performance,” argues Publix’s outgoing CEO, Ed Crenshaw. “Being a privately held company gives us the freedom to take a longer view of the business, and it makes a huge difference in how you can allocate and spend capital. We’re very fortunate to be able to do that.”
Scientific studies of stock ownership suggest that employees feel higher satisfaction levels because of the mindset that comes with owning. There certainly seems to be some evidence of that at Publix. Its annual voluntary turnover rate sits at just 5 percent in an industry that averages 65 percent! In part, that loyalty can be seen as repaying a company that has never downsized in its 90-year history. All of this has created admirers outside the company, not just inside it. As billionaire investor Warren Buffett summarizes, “It’s the kind of company I’d like to buy. It has a terrific record in a very, very, very tough industry. There’s a certain amount of magic down there in terms of running the place.”
4.1 If you reflect on all the things Publix does to build and maintain satisfaction levels, which would “move the needle” for you the most? Why?
4.2 If you had the opportunity to allocate a portion of your paycheck to stock ownership in your company, would you? Why or why not? How do you think owning stock would shape your attitudes toward your employer?
4.3 Businesses like Publix employ a lot of part-time employees, and employees who are just getting started in their work careers. Do you think it’s easier to build job satisfaction levels among such employees, or harder?
Sources: C. Tkaczyk, “My Five Days of ‘Bleeding Green,’” Fortune, March 15, 2016; and A.A. Buchko, “The Effects of Employee Ownership on Employee Attitudes: An Integrated Causal Model and Path Analysis.” Journal of Management Studies 30, no. 4 (July 1993), pp. 633–57.
C A S E : P U B L I X
EXERCISE: JOB SATISFACTION ACROSS JOBS
The purpose of this exercise is to examine satisfaction with the work itself across jobs. This exercise uses groups, so your instructor will either assign you to a group or ask you to create your own group. The exercise has the following steps:
4.1 Use the OB Assessments for Chapter 4 to calculate the Satisfaction Potential Score (SPS) for the following four jobs: a. A third-grade public school teacher. b. A standup comedian.
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4.1 Locke, E.A. “The Nature and Causes of Job Satisfaction.” In Handbook of Industrial and Organizational Psychology, ed. M. Dunnette. Chicago: Rand McNally, 1976, pp. 1297–1350.
4.2 “Americans’ Job Satis- faction Falls to Record Low.” Associated Press, January 5, 2010, http:// www.msnbc.msn .com/id/34691428/ns/ business-careers.
4.3 Locke, “The Nature and Causes of Job Satisfac- tion”; Rokeach, M. The Nature of Human Values. New York: Free Press, 1973; Schwartz, S.H. “Universals in the Content and Structure of Values: Theoretical Advances and Empirical Tests in 20 Countries.” In Advances in Experimen- tal Social Psychology, Vol. 25, ed. M. Zanna. New York: Academic Press, 1992, pp. 1–65; and Edwards, J.R., and D.M. Cable. “The Value of Value
Congruence.” Journal of Applied Psychology 94 (2009), pp. 654–77.
4.4 Dawis, R.V. “Voca- tional Interests, Values, and Preferences.” In Handbook of Industrial and Organizational Psychology, Vol. 2, ed. M.D. Dunnette and L.M. Hough. Palo Alto, CA: Consulting Psychologists Press, 1991, pp. 834–71; and Cable, D.M., and J.R. Edwards. “Complemen- tary and Supplemen- tary Fit: A Theoretical and Empirical Integra- tion.” Journal of Applied Psychology 89 (2004), pp. 822–34.
4.5 Locke, “The Nature and Causes of Job Satisfaction.”
4.6 Judge, T.A., and A.H. Church. “Job Satisfac- tion: Research and Practice.” In Industrial and Organizational Psy- chology: Linking Theory with Practice, ed. C.L. Cooper and E.A. Locke. Oxford, UK: Blackwell, 2000, pp. 166–98.
4.7 Locke, “The Nature and Causes of Job Satisfactin.”
4.8 Smith, P.C.; L.M. Kendall; and C.L. Hulin. The Measure- ment of Satisfaction in Work and Retire- ment. Chicago: Rand McNally, 1969.
4.9 Lawler, E.E. Pay and Organizational Effectiveness: A Psycho- logical View. New York: McGraw-Hill, 1971.
4.10 Locke, “The Nature and Causes of Job Satisfaction.”
4.11 Moskowitz, M.; R. Levering; and C. Tkaczyk. “100 Best Companies to Work For.” Fortune, February 7, 2011, pp. 91–101.
4.12 Smith et al., “The Measurement of Satisfaction.”
4.13 Locke, “The Nature and Causes of Job Satisfaction.”
4.14 Tkaczyk, C. “Nord- strom.” Fortune, October 18, 2010, p. 37.
E N D N OT E S
c. A computer programmer whose job is to replace “15” with “2015” in thousands of lines of computer code.
d. A president of the United States.
4.2 Which job has the highest SPS? Which core job characteristics best explain why some jobs have high scores and other jobs have low scores? Write down the scores for the four jobs in an Excel file on the classroom computer or on the board.
4.3 Class discussion (whether in groups or as a class) should center on two questions. First, is the job that scored the highest really the one that would be the most enjoyable on a day-in, day-out basis? Second, does that mean it would be the job that you would pick if you could snap your fingers and magically attain one of the jobs on the list? Why or why not? What other job satisfaction theory is relevant to this issue?
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4.15 Smith et al., “The Measurement of Satisfaction.”
4.16 Source: Locke, “The Nature and Causes of Job Satisfaction.”
4.17 Burchell, M., and J. Robin. The Great Workplace: How to Build It, How to Keep It, and Why It Matters. San Francisco: Jossey-Bass, 2011.
4.18 Smith et al., “The Measurement of Satisfaction.”
4.19 Burchell and Robin, The Great Workplace.
4.20 Smith et al., “The Measurement of Satisfaction.”
4.21 Murphy, R.M. “Happy Campers.” Fortune, April 25, 2011.
4.22 Ironson, G.H.; P.C. Smith; M.T. Brannick; W.M. Gibson; and K.B. Paul. “Construction of a Job in General Scale: A Comparison of Global, Composite, and Specific Measures.” Journal of Applied Psychology 74 (1989), pp. 193–200; Russell, S.S.; C. Spitzmuller; L.F. Lin; J.M. Stanton; P.C. Smith; and G.H. Ironson. “Shorter Can Also Be Better: The Abridged Job in Gen- eral Scale.” Educational and Psychological Mea- surement 64 (2004), pp. 878–93; Bowling, N.A., and Hammond, G.D. “A Meta-Analytic Examination of the Construct Validity of the Michigan
Organizational Assess- ment Questionnaire Job Satisfaction Subscale.” Journal of Vocational Behavior 73 (2008), pp. 63–77; and Judge, T.A.; R.F. Piccolo; N.P. Podsakoff; J.C. Shaw; and B.L. Rich. “The Relationship between Pay and Job Satisfac- tion: A Meta-Analysis.” Journal of Vocational Behavior 77 (2010), pp. 157–67.
4.23 Taylor, F.W. The Principles of Scientific Management. New York: Wiley, 1911; and Gil- breth, F.B. Motion Study: A Method for Increasing the Efficiency of the Workman. New York: Van Nostrand, 1911.
4.24 Hackman, J.R., and E.E. Lawler III. “Employee Reactions to Job Characteristics.” Journal of Applied Psychology 55 (1971), pp. 259–86.
4.25 Hackman, J.R., and G.R. Oldham. Work Redesign. Reading, MA: Addison-Wesley, 1980.
4.26 Ibid.
4.27 Ibid.
4.28 Hackman, J.R., and G.R. Oldham. “Motivation through the Design of Work: Test of a Theory.” Organizational Behavior and Human Decision Processes 16 (1976), pp. 250–79.
4.29 Hackman and Oldham, Work Redesign.
4.30 Turner, A.N., and P.R. Lawrence. Industrial
Jobs and the Worker. Boston: Harvard University Graduate School of Business Administration, 1965.
4.31 Hackman and Lawler, “Employee Reactions to Job Characteristics.”
4.32 Source: Berns, G. Satisfaction: The Science of Finding True Fulfill- ment. New York: Henry Holt, 2005, p.xiv.
4.33 Hackman and Oldham, Work Redesign.
4.34 Turner and Lawrence, Industrial Jobs and the Worker.
4.35 Hackman and Oldham, Work Redesign.
4.36 Grant, A.M. “The Significance of Task Significance: Job Per- formance Effects, Rela- tional Mechanisms, and Boundary Conditions.” Journal of Applied Psy- chology 93 (2008), pp. 108–24.
4.37 Hackman and Oldham, Work Redesign.
4.38 Turner and Lawrence, Industrial Jobs and the Worker.
4.39 Breaugh, J.A. “The Measurement of Work Autonomy.” Human Relations 38 (1985), pp. 551–70.
4.40 Hackman and Oldham, Work Redesign.
4.41 Humphrey, S.E.; J.D. Nahrgang; and F.P. Morgeson. “Integrating Motivational, Social, and Contextual Work Design Features: A Meta-Analytic
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Summary and Theo- retical Extension of the Work Design Litera- ture.” Journal of Applied Psychology 92 (2007), pp. 1332–56; and Fried, Y., and G.R. Ferris. “The Validity of the Job Characteristics Model: A Review and Meta- Analysis.” Personnel Psychology 40 (1987), pp. 287–322.
4.42 Hackman and Oldham, Work Redesign.
4.43 Loher, B.T.; R.A. Noe; N.L. Moeller; and M.P. Fitzgerald. “A Meta- Analysis of the Relation of Job Characteristics to Job Satisfaction.” Journal of Applied Psy- chology 70 (1985), pp. 280–89.
4.44 Campion, M.A., and C.L. McClelland. “Interdisciplinary Examination of the Costs and Benefits of Enlarged Jobs: A Job Design Quasi- Experiment.” Journal of Applied Psychology 76 (1991), pp. 186–98.
4.45 Ibid.
4.46 Wrzesniewski, A., and J.E. Dutton. “Crafting a Job: Revisioning Employees as Active Crafters of Their Work.” Academy of Management Review 26 (2001), pp. 179–201; and Tims, M.; A.B. Bakker; and D. Derks. “Development and Validation of the Job Crafting Scale.” Journal of Vocational Behavior 80 (2012), pp. 173–86.
4.47 Morris, W.N. Mood: The Frame of Mind.
New York: Springer- Verlag, 1989.
4.48 Watson, D., and A. Tellegen. “Toward a Consensual Structure of Mood.” Psychological Bulletin 98 (1985), pp. 219–35; Russell, J.A. “A Circumplex Model of Affect.” Journal of Personality and Social Psychology 39 (1980), pp. 1161–78; and Larsen, R.J., and E. Diener. “Promises and Problems with the Circumplex Model of Emotion.” In Review of Personality and Social Psychology: Emotion, Vol. 13, ed. M.S. Clark. Newbury Park, CA: Sage, 1992, pp. 25–59.
4.49 Ibid.
4.50 Moskowitz et al., “100 Best Companies to Work For.”
4.51 Ibid.
4.52 Csikszentmihalyi, M. Finding Flow: The Psy- chology of Engagement with Everyday Life. New York: Basic Books, 1997; Csikszentmihalyi, M. Flow: The Psychology of Optimal Experience. New York: Harper- Perennial, 1990; and Csikszentmihalyi, M. Beyond Boredom and Anxiety. San Francisco: Jossey-Bass, 1975.
4.53 Quinn, R.W. “Flow in Knowledge Work: High Performance Experience in the Design of National Security Technology.” Administrative Science Quarterly 50 (2005),
pp. 610–41; Jackson, S.A., and H.W. Marsh. “Development and Validation of a Scale to Measure Optimal Expe- rience: The Flow State Scale.” Journal of Sport and Exercise Psychology 18 (1996), pp. 17–35; and Bakker, A.B. “The Work-Related Flow Inventory: Construc- tion and Initial Valida- tion of the WOLF.” Journal of Vocational Behavior 72 (2008), pp. 400–14.
4.54 Weiss, H.M., and R. Cropanzano. “Affective Events Theory: A Theo- retical Discussion of the Structure, Causes, and Consequences of Affective Experiences at Work.” In Research in Organizational Behavior, Vol. 18, ed. B.M. Staw and L.L. Cummings. Greenwich, CT: JAI Press, 1996, pp. 1–74.
4.55 Source: Weiss, H.M., and K.E. Kurek, “Dispositional Influ- ences on Affective Experiences at Work.” In Personality and Work: Reconsidering the Role of Personality in Organizations, ed. M.R. Barrick and A.M. Ryan. San Francisco: Jossey- Bass, 2003, pp. 121–49.
4.56 Weiss and Cropanzano, “Affective Events Theory.”
4.57 Lazarus, R.S. Emotion and Adaptation. New York: Oxford University Press, 1991.
4.58 Hochschild, A.R. The Managed Heart: Commercialization
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of Human Feeling. Berkeley: University of California Press, 1983; and Rafaeli, A., and R.I. Sutton. “The Expression of Emotion in Organizational Life.” Research in Organi- zational Behavior 11 (1989), pp. 1–42.
4.59 Hatfield, E.; J.T. Cacioppo; and R.L. Rapson. Emotional Contagion. New York: Cambridge University Press, 1994.
4.60 Ashkanasy, N.M.; C.E.J. Hartel; and C.S. Daus. “Diversity and Emotion: The New Frontiers in Orga- nizational Behavior Research.” Journal of Management 28 (2002), pp. 307–38.
4.61 Judge, T.A.; C.J. Thoreson; J.E. Bono; and G.K Patton. “The Job Satisfaction–Job Performance Relation- ship: A Qualitative and Quantitative Review.” Psychological Bulletin 127 (2001), pp. 376–407.
4.62 Baas, M.; C.K.W. De Dreu; and B.A. Nijstad. “A Meta-Analysis of 25 Years of Mood— Creativity Research: Hedonic Tone, Activa- tion, or Regulatory Focus.” Psychological Bulletin 134 (2008), pp. 779–806; and Lyu- bomirsky, S.; L. King; and E. Diener. “The Benefits of Frequent Positive Affect: Does Happiness Lead to Success?” Psychological Bulletin 131 (2005), pp. 803–55.
4.63 Brief, A.P., and H.M. Weiss. “Organizational Behavior: Affect in the Workplace.” Annual Review of Psychology 53 (2002), pp. 279–307.
4.64 Isen, A.M., and R.A. Baron. “Positive Affect as a Factor in Orga- nizational Behavior.” Research in Organizational Behavior 13 (1991), pp. 1–53.
4.65 Tsai, W.C.; C.C. Chen; and H.L. Liu. “Test of a Model Linking Employee Positive Moods and Task Per- formance.” Journal of Applied Psychology 92 (2007), pp. 1570–83.
4.66 Beal, D.J.; H.M. Weiss; E. Barros; and S.M. MacDermid. “An Epi- sodic Process Model of Affective Influences on Performance.” Journal of Applied Psychology 90 (2005), pp. 1054–68; and Miner, A.G., and T.M. Glomb. “State Mood, Task Perfor- mance, and Behavior at Work: A Within- Persons Approach.” Organizational Behavior and Human Decision Processes 112 (2010), pp. 43–57.
4.67 Locke, “The Nature and Causes of Job Satisfaction.”
4.68 Riketta, M. “The Causal Relation between Job Attitudes and Job Performance: A Meta-Analysis of Panel Studies.” Journal of Applied Psychology 93 (2008), pp. 472–81.
4.69 LePine, J.A.; A. Erez; and D.E. Johnson. “The Nature and Dimensionality of Organizational Citizenship Behavior: A Critical Review and Meta-Analysis.” Journal of Applied Psychology 87 (2002), pp. 52–65.
4.70 Lyubomirsky et al., “The Benefits of Fre- quent Positive Affect”; and Dalal, R.S.; H. Lam; H.M. Weiss; E.R. Welch; and C.L. Hulin. “A Within-Person Approach to Work Behavior and Perfor- mance: Concurrent and Lagged Citizenship- Counterproductivity Associations, and Dynamic Relationships with Affect and Overall Job Performance.” Academy of Manage- ment Journal 52 (2009), pp. 1051–66.
4.71 Dalal, R.S. “A Meta-Analysis of the Relationship between Organizational Citizen- ship Behavior and Counterproductive Work Behavior.” Journal of Applied Psychology 90 (2005), pp. 1241–55.
4.72 Yang, J., and J.M. Diefendorff. “The Relations of Daily Counterproductive Workplace Behavior with Emotions, Situa- tional Antecedents, and Personality Modera- tors: A Diary Study in Hong Kong.” Personnel Psychology 62 (2009), pp. 259–95; and Dalal et al., “A Within- Person Approach to
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Work Behavior and Performance.”
4.73 Cooper-Hakim, A., and C. Viswesvaran. “The Construct of Work Commitment: Testing an Integrative Frame- work.” Psychological Bulletin 131 (2005), pp. 241–59; Harrison, D.A.; D. Newman; and P.L. Roth. “How Important Are Job Atti- tudes? Meta-Analytic Comparisons of Integrative Behavioral Outcomes and Time Sequences.” Academy of Management Journal 49 (2006), pp. 305–25; and Meyer, J.P.; D.J. Stanley; L. Herscovitch; and L. Topolnytsky. “Affective, Continuance, and Nor- mative Commitment to the Organization: A Meta-Analysis of Ante- cedents, Correlates, and Consequences.” Journal of Vocational Behavior 61 (2002), pp. 20–52.
4.74 Ibid.
4.75 Tait, M.; M.Y. Padgett; and T.T. Baldwin. “Job and Life Satisfaction: A Reexamination of the Strength of the Rela- tionship and Gender Effects as a Function of the Date of the Study.” Journal of Applied Psy- chology 74 (1989), pp. 502–507; Judge, T.A.,
S. Watanabe. “Another Look at the Job Satisfaction–Life Satis- faction Relationship.” Journal of Applied Psy- chology 78 (1993), pp. 939–48; and Erdogan, B.; T.N. Bauer; D.M. Truxillo; and L.R. Man- sfield. “Whistle While You Work: A Review of the Life Satisfaction Literature.” Journal of Management 38 (2012), pp. 1038–83.
4.76 Kahneman, D.; A.B. Krueger; D.A. Schkade; N. Schwarz; and A.A. Stone. “A Survey Method for Characterizing Daily Life Experience: The Day Reconstruction Method.” Science 306 (2004), pp. 1776–80.
4.77 Kahneman, D., and A. Deaton. “High Income Improves Evaluation of Life but Not Emo- tional Well-Being.” Proceedings of the National Academy of Sciences 107 (2010), pp. 16489–93.
4.78 Saari, L.M., and T.A. Judge. “Employee Atti- tudes and Job Satisfac- tion.” Human Resource Management 43 (2004), pp. 395–407.
4.79 Kinicki, A.J.; F.M. McKee-Ryan; C.A. Schriesheim; and K.P. Carson. “Assessing the Construct Validity
of the Job Descrip- tive Index: A Review and Meta-Analysis.” Journal of Applied Psy- chology 87 (2002), pp. 14–32; Hanisch, K.A. “The Job Descriptive Index Revisited: Ques- tions about the Ques- tion Mark.” Journal of Applied Psychology 77 (1992), pp. 377–82; and Jung, K.G.; A. Dalessio; and S.M. Johnson. “Stability of the Factor Structure of the Job Descriptive Index.” Academy of Management Journal 29 (1986), pp. 609–16.
4.80 Ironson et al., “Con- struction”; and Russell et al., “Shorter Can Also Be Better.”
4.81 Balzer, W.K.; J.A. Kihn; P.C. Smith; J.L. Irwin; P.D. Bachiochi; C. Robie; E.F. Sinar; and L.F. Parra. “Users’ Manual for the Job Descriptive Index (JDI; 1997 version) and the Job in General Scales.” In Electronic Resources for the JDI and JIG, ed. J.M. Stanton and C.D. Crossley. Bowling Green, OH: Bowling Green State University, 2000.
4.82 Ibid.
4.83 Ibid.
4.84 Saari and Judge, “Employee Attitudes.”
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5
LEARNING GOALS
5.1 What is stress, and how is it related to stressors and strains? 5.2 What are the four main types of stressors? 5.3 How do individuals cope with stress? 5.4 How does the Type A Behavior Pattern influence the stress process? 5.5 How does stress affect job performance and organizational commitment? 5.6 What steps can organizations take to manage employee stress?
After reading this chapter, you should be able to answer the following questions:
Stress
INDIVIDUAL OUTCOMES
INDIVIDUAL MECHANISMS
INDIVIDUAL CHARACTERISTICS
ORGANIZATIONAL MECHANISMS
Organizational Culture
Organizational Structure
Teams: Processes &
Communication
Motivation
Trust, Justice, & Ethics
Teams: Characteristics &
Diversity Learning &
Decision Making
Ability
Personality & Cultural Values
Stress
Leadership: Power &
Negotiation
Job Satisfaction
Leadership: Styles &
Behaviors
Organizational Commitment
Job Performance
GROUP MECHANISMS
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W hen asked to think of a Honeywell product, the company’s “round” thermostat might come to mind. In continuous production since 1953, the T-86
thermostat is used in more homes and commercial build- ings than any other, and is part of the Smithsonian Design Museum’s collection of iconic everyday items. If asked what other products Honeywell manufactures, you might have a vague sense that they manufacture equipment for the mili- tary and space industries, but you might have difficulty nam- ing anything specific. In fact, Honeywell manufactures tens of thousands of products, albeit most are used in the pro- duction of other products and services. Examples of busi- nesses in which Honeywell operates include commercial and defense aviation, satellite communications, home comfort and security, remote health monitoring, industrial automation, petroleum and petrochemical equipment, and products and materials used in electronics, fertilizers, films, and adhesives.
Over the last century, Honeywell has evolved into a $40 billion company through a constant stream of acquisi- tions and divestitures. To Honeywell’s employees, this evo- lution has been a double-edged sword. On the one hand, continual change in the company’s mix of businesses cre- ates opportunities for employees to develop in their knowl- edge and skills. For example, company managers may be tasked with the challenge of integrating an acquisition into
the larger company and identifying potential synergies with existing businesses. On the other hand, constant change creates a great deal of uncertainty and stress among the company’s employees. For instance, an acquisition of a related business can create redundancies in functional roles, and so employees may feel threatened about losing their jobs or being forced to relocate.
Honeywell recognizes that there are costs associated with employee stress and has taken steps to mitigate its effects. For example, the company offers a multifaceted health benefits package that includes things like medical and preventative care, mental health services, and sub- stance abuse counseling. Although most large companies offer similar types of benefits, Honeywell’s HealthResource program is more innovative. It consists of a set of tools that help employees connect with health care resources any time they might need them. For example, registered nurses are available to answer health care questions and direct employees to other resources. The program also provides employees with access to information from the Mayo Clinic regarding issues such as weight management, diet, and stress reduction. Honeywell believes that when employees are given information to make informed decisions about health and well-being, the employees, their families, and the company all benefit.
HONEYWELL
©CTK/Alamy
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S T R E S S
Stress is an OB topic that’s probably quite familiar to you. Even if you don’t have a lot of work experience, consider how you feel toward the end of a semester when you have to cram for several final exams and finish a term paper and other projects. At the same time, you might have also been looking for a job or planning a trip with friends or family. Although some people might be able to deal with all of these demands without becoming too frazzled, most people would say this type of scenario causes them to feel “stressed out.” This stressed out feeling might even be accom- panied by headaches, stomach upsets, backaches, or sleeping difficulties. Although you might believe your stress will diminish once you graduate and settle down, high stress on the job is more prevalent than it’s ever been before.1 The federal government’s National Institute for Occupa- tional Safety and Health (NIOSH) summarized findings from several sources that indicated up to 40 percent of U.S. workers feel their jobs are “very stressful” or “extremely stressful.”2 Unfortu- nately, high stress is even more prevalent in the types of jobs that most of you are likely to have after you graduate. In fact, managers are approximately 21 percent more likely than the average
5.1 What is stress, and how is it related to stressors and strains?
TABLE 5-1 Jobs Rated from Least Stressful (1) to Most Stressful (200)
LEAST STRESSFUL JOBS STRESS LEVEL MOST STRESSFUL JOBS
STRESS LEVEL
1. Tenured University Professor 5.03 143. Elementary School Teacher 27.37
2. Audiologist 6.33 148. Management Consultant 28.24
3. Medical Records Technician 7.48 150. Air Traffic Controller 28.58
4. Jeweler 8.10 154. Surgeon 28.90
8. Librarian 10.61 163. Construction Foreman 30.92
14. Software Engineer 12.13 166. Lumberjack 32.00
18. Computer Service Technician 12.64 172. Attorney 36.40
24. Occupational Therapist 13.14 175. Sales Representative 36.95
29. Chiropractor 13.55 179. Real Estate Agent 38.57
30. Actuary 14.09 180. Social Media Manager 38.60
35. Multimedia Artist 14.40 183. Stockbroker 39.97
39. Hair Stylist 14.59 185. Advertising Account Executive 43.24
40. Meteorologist 14.65 189. Taxi Driver 46.18
42. Loan Officer 14.73 191. Senior Corporate Executive 47.55
47. Biologist 15.10 194. Event Coordinator 49.73
50. Optician 15.57 195. Police Officer 50.81
53. Veterinarian 15.83 196. Airline Pilot 59.12
63. Chemist 17.00 198. Newspaper Reporter 69.67
74. Sustainability Manager 18.50 199. Firefighter 71.64
84. Accountant 19.85 200. Enlisted Military Personnel 74.83
Source: Adapted from L. Krantz and T. Lee, “The Jobs Rated Almanac” (Lake Geneva, WI: iFocus Books, 2015). The stress level score is calculated by summing points in 10 categories: deadlines, working in the public eye, competitiveness, physical demands, environmental conditions, hazards, own life at risk, another’s life at risk, public encounters, and employment change.
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worker to describe their jobs as stressful.3 Moreover, as we described in the chapter opening, your level of stress may be even greater if you take a job in an organization, such Honeywell, where employees have to cope with change and uncertainty. Table 5-1 provides a list of jobs and their rank in terms of how stressful they are.
Stress is defined as a psychological response to demands that possess certain stakes for the person and that tax or exceed the person’s capacity or resources.4 The demands that cause people to experience stress are called stressors. The negative consequences that occur when demands tax or exceed a person’s capacity or resources are called strains. These definitions illustrate that stress depends on both the nature of the demand and the person who confronts it. People differ in terms of how they perceive and evaluate stressors and the way they cope with them. As a result, different people may experience different levels of stress even when confronted with the exact same situation.
W H Y A R E S O M E E M P LOY E E S M O R E “ S T R E S S E D ” T H A N OT H E R S ?
Stress in the workplace has been widely studied by scholars for over a century and there are many different theories that outline causes and consequences of stress.5 However, to understand what it means to feel “stressed,” it’s helpful to consider the transactional theory of stress. This theory explains how stressors are perceived and appraised, as well as how people respond to those per- ceptions and appraisals.6 When people first encounter stressors, the process of primary appraisal is triggered.7 As shown in Figure 5-1, primary appraisal occurs as people evaluate the significance and the meaning of the stressor they’re confronting. Here, people first consider whether a demand causes them to feel stressed, and if it does, they consider the implications of the stressor in terms of their personal goals and overall well-being.8
As an example of a primary appraisal, consider the job of a cashier at a well-run convenience store. In this store, cashiers engage in routine sales transactions with customers. Customers walk in the store and select merchandise, and the cashiers on duty ring up the sale and collect the money. Under normal day-to-day circumstances at this store, well-trained cashiers would not likely
FIGURE 5-1 Transactional Theory of Stress
Hindrance Challenge
Work
Nonwork
Stressors
Role conflict Role ambiguity Role overload Daily hassles
• • • •
Work–family conflict Negative life events
•
•
Time pressure Work complexity Work responsibility
• • •
Family time demands Personal development Positive life events
•
•
•
STRESS
Primary Appraisal Is this stressful?
Secondary Appraisal How can I cope?
Financial uncertainty
•
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feel that these transactions are overly taxing or exceed their capacity, so those cashiers would not likely appraise these job demands as stressful. Job demands that tend not to be appraised as stress- ful are called benign job demands.
However, consider how convenience store cashiers would react in a different store in which the cash register and credit card machine break down often and without warning. The cashiers who work at this store would likely view their job as being more stressful. This is because they would have to diagnose and fix problems with equipment while dealing with customers who are grow- ing more and more impatient. Furthermore, the cashiers in this store might appraise the stressful situation as one that unnecessarily prevents them from achieving their goal of being viewed as an effective employee in the eyes of the customers and the store manager.
Finally, consider a third convenience store in which the cashiers’ workload is higher due to additional responsibilities that include receiving merchandise from vendors, taking physical inven- tory, and training new employees. In this store, the cashiers may appraise their jobs as stressful because of the higher workload and the need to balance different priorities. However, in contrast to the cashiers in the previous example, cashiers in this store might appraise these demands as providing an opportunity to learn and demonstrate the type of competence that often is rewarded with satisfying promotions and pay raises.
T Y P E S O F ST R E S S O R S In the previous two examples, the cashiers were confronted with demands that a primary appraisal would label as “stressful.” However, the specific demands in the two examples have an important difference. Having to deal with equipment breakdowns or unhappy customers is not likely to be perceived by most employees as having implications that are personally beneficial; in fact, the opposite is likely to be true. These kinds of stressors are called hindrance stressors, or stressful demands that people tend to perceive as hindering their progress toward personal accomplish- ments or goal attainment.9 Hindrance stressors most often trigger negative emotions such as anxi- ety and anger.10
In contrast, having to deal with additional responsibilities is likely to be perceived by most employees as having long-term benefits. These kinds of stressors are called challenge stressors, or stressful demands that people tend to perceive as opportunities for learning, growth, and achieve- ment.11 Although challenge stressors can be exhausting, they often trigger positive emotions such as pride and enthusiasm. Figure 5-1 lists a number of hindrance and challenge stressors, some of which are experienced at work and some of which are experienced outside of work.12
WORK HINDRANCE STRESSORS The various roles we fill at work are the source of differ- ent types of work-related hindrance stressors.13 One type of work-related hindrance stressor is role conflict, which refers to conflicting expectations that other people may have of us.14 As an example of role conflict that occurs from incompatible demands within a single role that a person may hold, consider the job of a call center operator. People holding these jobs are expected to communicate with as many people as possible over a given time period. The expectation is that the call center operator will spend as little time as possible with the people on the other end of the line. At the same time, however, operators are also expected to be responsive to the questions and concerns raised by the people they talk with. Because effectiveness in this aspect of the job may require a great deal of time, call center operators are put in a position in which they simply cannot meet both types of expectations. For an interesting example of role conflict and its consequences, see our OB on Screen feature.
Role ambiguity refers to a lack of information about what needs to be done in a role, as well as unpredictability regarding the consequences of performance in that role.15 Employees are sometimes asked to work on projects for which they’re given very few instructions or guidelines about how things are supposed to be done. In these cases, employees may not know how much money they can spend on the project, how long it’s supposed to take, or what exactly the finished product is supposed to look like. Role ambiguity is often experienced among new employees who haven’t been around long enough to receive instructions from supervisors or observe and model the role behaviors of more senior colleagues. Students sometimes experience role ambigu- ity when professors remain vague about particular course requirements or how grading is going to
5.2 What are the four main types of stressors?
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OB ON SCREEN DEEPWATER HORIZON
We a big company . . . millions of moving parts . . . thousands upon thousands of people. We all work very hard to ensure that all those people and all those moving parts are functioning prop- erly as a means to an end, a very profitable end for all of us.
With those words, BP executive Donald Vidrine (John Malkovich) provides not so subtle pres- sure on an offshore oil rig worker to skirt safety procedures, in the reality-based movie Deepwater Horizon (Dir. Peter Berg, Summit Entertainment and Participant Media, 2016). Located in the Gulf of Mexico, 41 miles off the coast of Louisiana, a Deepwater Horizon crew had just sealed off an exploratory well with a concrete cap so that the well could be exploited later by BP. There was a crew changeover, and the new crew expressed concerns regarding the previous crew’s failure to complete some tests on the concrete. Soon afterwards, there was an eruption of mud and methane gas through the concrete cap and drilling equipment. Explosions and fire ensued, destroying the rig, killing 11 crew members, and creating the largest marine oil spill in U.S. history.
©Moviestore collection Ltd/Alamy
Although the incident was likely caused by a constellation of factors and poor decisions on the part of several parties, the film portrays role conflict as a primary culprit. Jimmy Harrell (Kurt Russell) was the ranking manager aboard Transocean’s Deepwater Horizon, which was being leased by BP for oil exploration. On the one hand, Harrell understood that he was responsible for the safety of the crew and his employer’s rig. He was unsure about the integrity of the concrete cap, and he wanted to conduct some testing before granting permission to the crew to move onto the next phase of operations. On the other hand, Vidrine reminded Harrell that he and his company were working for BP and should have BP’s best interest in mind. Vidrine emphasized to Harrell that the well was behind schedule due to problems on Deepwater Horizon, and that fur- ther testing would create even more delays and would cost both companies more money. Although a compromise was reached, inconsistencies in the test results were not scrutinized sufficiently, and the rest is history.
be performed. In such cases, the class becomes stressful because it’s not quite clear what it takes to get a good grade.
Role overload occurs when the number of demanding roles a person holds is so high that the person simply cannot perform some or all of the roles effectively.16 Role overload as a source of stress is becoming very prevalent for employees in many different industries, and in fact, studies have shown that this source of stress is more prevalent than both role conflict and role ambiguity.17 For example, the workload for executives and managers who work in investment banking, consult- ing, and law is so high that 80-hour workweeks are becoming the norm.18 Although this trend may
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not be surprising to some of you, people holding these jobs also indicate that they would not be able to effectively com- plete most of the work that’s required of them, even if they worked twice as many hours.
One final type of work- related hindrance stressor, daily hassles, refers to the relatively minor day-to-day demands that get in the way of accomplishing the things that we really want to accomplish.19 Examples of hassles include having to deal with unneces- sary paperwork, office equip-
ment malfunctions, annoying interactions with abrasive coworkers, and useless communications. Although these examples of daily hassles may seem relatively minor, taken together, they can be extremely time-consuming and stressful. Indeed, according to one survey, 40 percent of executives spend somewhere between a half-day and a full day each week on communications that are not useful or necessary.20
WORK CHALLENGE STRESSORS One type of work-related challenge stressor is time pressure— a strong sense that the amount of time you have to do a task is not quite enough.21 Although most people appraise situations with high time pressure as rather stressful, they also tend to appraise these situations as more challenging than hindering. Time pressure demands tend to be viewed as something worth striving for because success in meeting such demands can be intrinsically satisfying. As an example of this positive effect of high time pressure, consider Michael Jones, an architect at a top New York firm. His job involves overseeing multiple projects with tight dead- lines, and as a result, he has to work at a hectic pace. Although Jones readily acknowledges that his job is stressful, he also believes that the outcome of having all the stress is satisfying. Jones is able to see the product of his labor over the Manhattan skyline, which makes him feel like he’s a part of something.22
Work complexity refers to the degree to which the requirements of the work—in terms of knowledge, skills, and abilities—tax or exceed the capabilities of the person who is responsible for performing the work.23 As an example of work complexity, consider the nature of employee development practices that organizations use to train future executives and organizational lead- ers. In many cases, these practices involve giving people jobs that require skills and knowledge that the people do not yet possess. A successful marketing manager who is being groomed for an executive-level position may, for example, be asked to manage a poorly performing production facility with poor labor relations in a country halfway around the world. Although these types of developmental experiences tend to be quite stressful, managers report that being stretched beyond their capacity is well worth the associated discomfort.24
Work responsibility refers to the nature of the obligations that a person has toward others.25 Generally speaking, the level of responsibility in a job is higher when the number, scope, and importance of the obligations in that job are higher. As an example, the level of work responsi- bility for an air traffic controller, who may be accountable for the lives of tens of thousands of people every day, is very high.26 Controllers understand that if they make an error while directing an aircraft—for example, saying “turn left” instead of “turn right”—hundreds of people can die in an instant. Although controller errors that result in midair collisions and crashes are extremely rare, the possibility weighs heavily on the minds of controllers, especially after they lose “the pic- ture” (controller jargon for the mental representation of an assigned airspace and all the aircraft within it) due to extreme workloads, a loss of concentration, or equipment malfunctions. As with
In addition to the role conflict created in trying to
balance responsiveness to customers with high call volume, call center opera- tors also experience daily
hassles. They have to deal with poor connections,
language difficulties, rude- ness, and questions for
which they are ill prepared to answer.
©Terry Vine/Blend Images LLC
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people’s reactions to time pressure and work complexity, people tend to evaluate demands associ- ated with high responsibility as both stressful and potentially positive.
NONWORK HINDRANCE STRESSORS Although the majority of people in the United States spend more time at the office than anywhere else,27 there are a number of stressful demands out- side of work that have implications for managing behavior in organizations.28 In essence, stressors experienced outside of work may have effects that “spill over” to affect the employee at work.29 One example of nonwork hindrance stressors is work–family conflict, a special form of role conflict in which the demands of a work role hinder the fulfillment of the demands of a family role (or vice versa).30 More generally, work–family conflict can be thought of as something that upsets the bal- ance or our work and nonwork lives.31 We most often think of cases in which work demands hinder effectiveness in the family context, termed “work to family conflict.” For example, a store manager who has to deal with lots of hindrances at work may have trouble switching off the frustration after arriving home, and as a consequence, become irritable and impatient with family and friends. How- ever, work–family conflict can occur in the other direction as well. For example, “family to work conflict” would occur if a salesperson experiencing the stress of marital conflict comes to work harboring emotional pain and negative feelings, which makes it difficult to interact with customers effectively. Although these examples illustrate how work–family conflict can have negative conse- quences, it is also important to recognize that these negative consequences can, in turn, create even more work–family conflict.32 For example, the store manager who becomes impatient with family and friends due to hindrances at work may get into stressful conflicts at home, which in turn, may makes it even more difficult to deal with hindrances at work the next day. We should also note that although there are many benefits to having an active and well-rounded life, it’s important to recog- nize that both work to family conflict and family to work conflict tend to be higher for employees who are strongly embedded in their work organizations and their communities.33
Nonwork hindrance stressors also come in the form of negative life events.34 Research has revealed that a number of life events are perceived as quite stressful, particularly when they result in significant changes to a person’s life.35 Table 5-2 provides a listing of some commonly experi- enced life events, along with a score that estimates how stressful each event is perceived to be. As the table reveals, many of the most stressful life events do not occur at work. Rather, they include family events such as the death of a spouse or close family member, a divorce or marital separa- tion, a jail term, or a personal illness. These events would be classified as hindrance stressors because they hinder the ability to achieve life goals and are associated with negative emotions.
A third type of nonwork hindrance stressor is financial uncertainty. This type of stressor refers to conditions that create uncertainties with regard to the loss of livelihood, savings, or the ability to pay expenses. This type of stressor is highly relevant during recessions or economic downturns.
The job of an air traffic controller is stressful because of the challenging demands. In particular, air traffic controllers know that during each shift they work, they’ll be responsible for ensuring that thousands of people arrive at their destinations safely and on time.
©Monty Rakusen/Getty Images
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TABLE 5-2 Stressful Life Events
LIFE EVENT STRESS SCORE LIFE EVENT
STRESS SCORE
Death of a spouse 100 Trouble with in-laws 29
Divorce 73 Outstanding achievement 28
Marital separation 65 Begin or end school 26
Jail term 63 Change in living conditions 25
Death of close family member 63 Trouble with boss 23
Personal illness 53 Change in work hours 20
Marriage 50 Change in residence 20
Fired at work 47 Change in schools 20
Marital reconciliation 45 Change in social activities 18
Retirement 45 Change in sleeping habits 16
Pregnancy 40 Change in family get-togethers 15
Gain of new family member 39 Change in eating habits 15
Death of close friend 37 Vacations 13
Change in occupation 36 The holiday season 12
Child leaving home 29 Minor violations of the law 11
Source: Adapted from T.H. Holmes and R.H. Rahe, “The Social Re-Adjustment Rating Scale,” Journal of Psychosomatic Research 11 (1967), pp. 213–18.
When people have concerns about losing their jobs, homes, and life savings because of economic factors that are beyond their control, it’s understandable why nearly half of the respondents to a recent survey indicated that stress was making it hard for them to do their jobs.36
NONWORK CHALLENGE STRESSORS Of course, the nonwork domain can be a source of challenge stressors as well.37 Family time demands refer to the time that a person commits to participate in an array of family activities and responsibilities. Specific examples of family time demands include time spent involved in family pursuits such as traveling, attending social events and organized activities, hosting parties, and planning and making home improvements. Exam- ples of personal development activities include participation in formal education programs, music lessons, sports-related training, hobby-related self-education, participation in local government, or volunteer work. Finally, Table 5-2 includes some positive life events that are sources of nonwork challenge stressors. For example, marriage, the addition of a new family member, and graduating from school are stressful in their own way. However, each is associated with more positive, rather than negative, emotions.
H OW D O P E O P L E C O P E W I T H ST R E S S O R S ? According to the transactional theory of stress, after people appraise a stressful demand, they ask themselves, “What should I do?” and “What can I do?” to deal with this situation. These questions, which refer to the secondary appraisal shown in Figure 5-1, center on the issue of how people cope with the various stressors they face.38 Coping refers to the behaviors and thoughts that people use to manage both the stressful demands they face and the emotions associated with those stressful demands.39 As Table 5-3 illustrates, coping can involve many different types of activities, and these activities can be grouped into four broad categories based on two dimensions.40 The first dimen- sion refers to the method of coping (behavioral versus cognitive), and the second dimension refers to the focus of coping (problem solving versus regulation of emotions).
5.3 How do individuals cope with stress?
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The first part of our coping definition highlights the idea that methods of coping can be catego- rized on the basis of whether they involve behaviors or thoughts. Behavioral coping involves the set of physical activities that are used to deal with a stressful situation.41 In one example of behavioral coping, a person who is confronted with a lot of time pressure at work might choose to cope by working faster. In another example, an employee who has several daily hassles might cope by avoiding work—coming in late, leaving early, or even staying home. As a final example, employees often cope with the stress of an international assignment by returning home from the assignment prematurely. As our OB Internationally feature illustrates, international assignments are becom- ing increasingly prevalent, and the costs of these early returns to organizations can be significant.
In contrast to behavioral coping, cognitive coping refers to the thoughts that are involved in try- ing to deal with a stressful situation.42 For example, the person who is confronted with an increase in time pressure might cope by thinking about different ways of accomplishing the work more effi- ciently. As another example of cognitive coping, employees who are confronted with daily hassles might try to convince themselves that the hassles are not that bad after all, perhaps by dwelling on less annoying aspects of the daily events.
Whereas the first part of our coping definition refers to the method of coping, the second part refers to the focus of coping—that is, does the coping attempt to address the stressful demand or the emotions triggered by the demand?43 Problem-focused coping refers to behaviors and cognitions intended to manage the stressful situation itself.44 To understand problem-focused coping, consider how the people in the previous paragraphs coped with time pressure. In the first example, the person attempted to address the time pressure by working harder, whereas in the second example, the person thought about a strategy for accomplishing the work more efficiently. Although the specific coping methods differed, both of these people reacted to the time pressure similarly, in that they focused their effort on meeting the demand rather than try- ing to avoid it.
In contrast to problem-focused coping, emotion-focused coping refers to the various ways in which people manage their own emotional reactions to stressful demands.45 The reactions to the daily hassles that we described previously illustrate two types of emotion-focused coping. In the first exam- ple, the employee used avoidance and distancing behaviors to reduce the emotional distress caused by the stressful situation. In the second example, the employee reappraised the demand to make it seem less stressful and threatening. Although people may be successful at changing the way different situations are construed to avoid feeling unpleasant emotions, the demand or problem that initially triggered the appraisal process remains.
TABLE 5-3 Examples of Coping Strategies
PROBLEM-FOCUSED EMOTION-FOCUSED
Behavioral Methods
• Working harder • Seeking assistance • Acquiring additional resources
• Engaging in alternative activities • Seeking support • Venting anger
Cognitive Methods
• Strategizing • Self-motivating • Changing priorities
• Avoiding, distancing, and ignoring • Looking for the positive in the negative • Reappraising
Source: Adapted from J.C. Latack and S.J. Havlovic, “Coping with Job Stress: A Conceptual Evaluation Framework for Coping Measures,” Journal of Organizational Behavior 13 (1992), pp. 479–508.
Although avoidance and distancing behaviors may reduce the emotional distress one feels, these strategies do not help manage the demand that’s causing the stress.
©Manchan/Getty Images
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The number of expatriates, or employees who are sent abroad to work for their organization, has increased recently. In one survey, for example, 47 percent of the companies reported an increase in the number of expatriate assignments over the previous year, and 54 percent projected increases in these assignments in the following year. This survey also indicated that more than half of all employees sent abroad expected their assignment to last between one and three years. Unfor- tunately, a significant number of expatriate assignments do not succeed because the employee returns home earlier than planned. In fact, up to 40 percent of all American expatriates return home early, and it has been estimated that each early return costs the host organization approxi- mately $100,000. Of course, a second way that international assignments fail is when the expatri- ate performs at an unsatisfactory level.
One key factor that influences the commitment and effectiveness of expatriates is how they handle the stress of being abroad. Expatriates who experience more stress as a result of cultural, interpersonal, or job factors tend to be less satisfied with their assignment, more likely to think about leaving their assignment early, and more likely to perform at subpar levels. One practice that could prove useful in managing expatriate stress is cross-cultural training, which focuses on help- ing people appreciate cultural differences and interacting more comfortably with the host-country nationals. Unfortunately, this type of training isn’t offered as frequently as you might think. Surveys suggest that many U.S. companies offer no formal cross-cultural training at all. Even when training is offered, it tends to focus more on language skills than on cultural understanding and interaction skills. Given that the number of expatriate assignments is on the rise, organizations might be well served if they increased emphasis on training in these types of skills so that their expatriates are better able to cope with the stress from being abroad.
OB INTERNATIONALLY
Sources: P. Bhaskar-Shrinivas, D.A. Harrison, M.A. Shaffer, and D.M. Luk, “Input-Based and Time-Based Models of International Adjustment: Meta-Analytic Evidence and Theoretical Extensions,” Academy of Management Journal 48 (2005), pp. 257–81; J.S. Black, M. Mendenhall, and G Oddou, “Toward a Comprehensive Model of International Adjust- ment: An Integration of Multiple Theoretical Perspectives,” Academy of Management Review 16 (1991), pp. 291–317; M.E. Mendenhall, T.M. Kulmann, G.K. Stahl, and J.S. Osland, “Employee Development and Expatriate Assignments,” Black- well Handbook of Cross-Cultural Management, ed. M.J. Gannon and K.L. Newman (Malden, MA: Blackwell, 2002), pp. 155–84; and Global Relocation Trends, 2005 Survey Report, GMAC Global Relocation Services, Woodridge, IL, 2006, http://www.gmacglobalrelocation.com/insight_support/global_relocation.asp.
Of course, the coping strategy that’s ultimately used has important implications for how effec- tively people can meet or adapt to the different stressors that they face. In the work context, for example, a manager would most likely want subordinates to cope with the stress of a heavy workload by using a problem-focused strategy—working harder—rather than an emotion-focused strategy—leaving work several hours early to create distance from the stressor. Of course, there are some situations in which emotion-focused coping may be functional for the person. As an exam- ple, consider someone who repeatedly fails to make it through the auditions for the TV show The Voice, despite years of voice lessons and countless hours of practice. At some point, if he did not have the capability to cope emotionally—perhaps by lowering his aspirations—his self-esteem could be damaged, which could translate into reduced effectiveness in other roles that he fill.
How do people choose a particular coping strategy? One factor that influences this choice is the set of beliefs that people have about how well different coping strategies can address different demands. In essence, people are likely to choose the coping strategy they believe has the highest likelihood of meeting the demand they face. For example, successful students may come to under- stand that the likelihood of effectively coping with demanding final exams is higher if they study
doubt
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hard rather than trying to escape from the situation by going out until 3:00 a.m. The choice also depends on the degree to which people believe that they have what it takes to execute the coping strategy effectively. Returning to the previous example, if students have already failed the first two exams in the course, despite trying hard, they may come to believe that a problem-focused coping strategy won’t work. In this situation, because students may feel helpless to address the demand directly, an emotion-focused coping strategy would be more likely.
Another critical factor that determines coping strategy choice is the degree to which people believe that a particular strategy gives them some degree of control over the stressor. If people believe that a demand can be addressed with a problem-focused coping strategy and have confi- dence that they can use that problem-focused strategy effectively, then they will feel some control over the situation and will likely use a problem-focused strategy. If people believe that a demand cannot be addressed with a problem-focused strategy or do not believe they can effectively execute that strategy, then they’ll feel a lack of control over the situation and will tend to use an emotion- focused coping strategy.
So what determines how people develop a sense of control? It appears that one important fac- tor is the nature of the stressful demand itself. In particular, people are likely to feel less control over a stressor when they appraise it as a hindrance rather than a challenge. Consider one of the life events in Table 5-2: “Trouble with boss.” This event would most likely be appraised as a hindrance stressor because it serves to thwart goal achievement and triggers negative emotions. If you’re like most people, you would want to change the behavior of your boss so that the trouble would stop and you could get on with your work. However, it’s also likely that you would feel like you have little control over this situation because bosses are in a position of power, and complain- ing to your boss’s boss might not be an option for you. The anxiety and hopelessness triggered by the situation would further erode any sense of control over the situation, likely leading to emotion- focused coping.46
T H E E X P E R I E N C E O F ST R A I N Earlier in this chapter, we defined strain as the negative consequences associated with stress. But how exactly does stress cause strain? Consider the case of Naomi Henderson, the CEO of RIVA, a Rockville, Maryland–based market research firm. The job of CEO is quite demanding, and Henderson found herself working 120 hours a week to cope with the heavy workload. One night she woke up to go to the bathroom and found that she literally could not move—she was paralyzed. After she was rushed to the emergency room, the doctor told Henderson and her husband that her diagnosis was stress. The doctor recommended rest in bed for 14 hours a day for six weeks.47 Although this example may seem extreme to you, the demands of many managerial and executive- level jobs are often excessive,48 and the negative health consequences that result are fairly predict- able. In fact, if you’ve ever been in a situation in which you’ve experienced heavy stress for more than a couple of days, you can probably appreciate the toll that stress can take on you. Although people react to stress differently, you may have felt unusually exhausted, irritable, and achy. What might be surprising to you is that the mechanism within your body that gives you the ability to function effectively in the face of stressful demands is the same mechanism that ends up causing you these problems. So what is this mechanism?
Essentially, the body has a set of responses that allow it to adapt and function effectively in the face of stressful demands, but if the stressful demands do not ramp down or the demands occur too frequently, the body’s adaptive responses become toxic.49 More specifically, when people are confronted with a stressor, their bodies secrete chemical compounds that increase their heart rate and blood pressure, as blood is redirected away from vital organs, such as the spleen, to the brain and skeletal muscles.50 Unfortunately, if the chemicals in the blood remain elevated because of prolonged or repeated exposure to the stressor, the body begins to break down, and several negative consequences are set into motion. As shown in Figure 5-2, those negative consequences come in three varieties: physiological strains, psychological strains, and behavioral strains.51
Physiological strains that result from stressors occur in at least four systems of the human body. First, stressors can reduce the effectiveness of the body’s immune system, which makes it more
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FIGURE 5-2 Examples of Strain
Source: Adapted from R.L. Kahn and P. Byosiere. “Stress in Organizations.” Handbook of Industrial and Organizational Psychology, Vol. 4, ed. M.D. Dunnette; J.M.R. Hourgh, and H.C. Triandis. Palo Alto, CA: Consulting Psychologists Press, 1992, pp. 517–650.
STRESS
Physiological Strains
(illness, high blood pressure, coronary artery disease, headaches, back pain,
stomachaches)
Psychological Strains
(depression, anxiety, irritability, forgetfulness, inability to think clearly,
reduced confidence, burnout)
Behavioral Strains
(alcohol and drug use, teeth grinding, compulsive
behaviors, overeating)
difficult for the body to ward off illness and infection. Have you ever noticed that you’re more likely to catch a cold during or immediately after final exam week? Second, stressors can harm the body’s cardiovascular system, cause the heart to race, increase blood pressure, and create coro- nary artery disease. Third, stressors can cause problems in the body’s musculoskeletal system. Tension headaches, tight shoulders, and back pain have all been linked to a variety of stressors. Fourth, stressors cause gastrointestinal system problems. Symptoms of this type of strain include stomachaches, indigestion, diarrhea, and constipation.52
Although you might be tempted to dismiss the importance of physiological strains because the likelihood of serious illness and disease is low for people in their 20s and 30s, research shows that dismissal may be a mistake. For example, high-pressure work deadlines increase the chance of heart attack within the next 24 hours by a factor of six.53 So even though your likelihood of suffer- ing a heart attack may be low, who would want to increase their risk by 600 percent? Furthermore, the negative physiological effects of stress persist over time and may not show up until far into the future. One study showed that eye problems, allergic complaints, and chronic diseases could be attributed to stress measured eight years earlier.54 Finally, researchers have found higher mortality
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rates (yes, the odds of dying) for employees in stressful jobs where the demands are high and where there is very little discretion or control.55
Psychological strains that result from stressors include depression, anxiety, anger, hos- tility, reduced self-confidence, irritability, inability to think clearly, forgetfulness, lack of creativity, memory loss, and (not surprising, given the rest of this list) a loss of sense of humor.56 You might be tempted to think of these problems as isolated incidents; however, they may reflect a more general psychological condition known as burnout, which can be defined as the emotional, mental, and physical exhaustion that results from having to cope with stressful demands on an ongoing basis.57 There are many familiar examples of people who have experi- enced burnout, and the majority of them illustrate how burnout can lead to a decision to quit a job or even change careers. As an example, after playing for 17 seasons for the Green Bay Packers, Brett Favre decided to retire from professional football after leading his team to the NFC champi- onship game in 2008.58 Favre explained to reporters that he was just tired of all the stress.59 The pressure of the challenge of winning compelled him to spend an ever-increasing amount of time preparing for the next game, and over time, this pressure built up and resulted in exhaustion and reduced commitment. Of course, Favre would un-retire to play for the New York Jets in 2008, only to re-retire after the season. Favre again un-retired in 2009 and joined the Minnesota Vikings. He re-retired, for the final time, after the 2010 season. Such changes of heart are not unusual after someone retires from an exciting job due to burnout. A break from stressors associated with the work not only gives the person a chance to rest and recharge, but it also provides a lot of free time to think about the excitement and challenge of performing again.
Finally, in addition to physiological and psychological strains, the stress process can result in behavioral strains. Behavioral strains are unhealthy behaviors such as grinding one’s teeth at night, being overly critical and bossy, excessive smoking, compulsive gum chewing, overuse of alcohol, and compulsive eating.60 Although it’s unknown why exposure to stressors results in these specific behaviors, it’s easy to see why these behaviors are undesirable both from personal and organiza- tional standpoints.
AC C O U N T I N G F O R I N D I V I D UA L S I N T H E ST R E S S P R O C E S S So far in this chapter, we’ve discussed how the typical or average person reacts to different sorts of stressors. However, we’ve yet to discuss how people differ in terms of how they react to demands. One way that people differ in their reactions to stress depends on whether they exhibit the Type A Behavior Pattern. “Type A” people have a strong sense of time urgency and tend to be impatient, hard-driving, competitive, controlling, aggressive, and even hostile.61 If you walk, talk, and eat at a quick pace, and if you find yourself constantly annoyed with people who do things too slowly, chances are that you’re a Type A person. With that said, one way to tell for sure is to fill out the Type A questionnaire in our OB Assessments feature.
In the context of this chapter, the Type A Behavior Pattern is important because it can influ- ence stressors, stress, and strains. First, the Type A Behavior Pattern may have a direct influence on the level of stressors that a person confronts. To understand why this might be true, consider that Type A persons tend to be hard-driving and have a strong desire to achieve. Because the behaviors that reflect these tendencies are valued by the organization, Type A individuals receive “rewards” in the form of increases in the amount and level of work required. In addition, because
5.4 How does the Type A Behavior Pattern influence the stress process?
Having started more than 300 games straight, Brett Favre is well known among sports fans for his durabil- ity as a NFL quarterback. However, his durability did not mean that he was immune to the effects of stress. He retired from foot- ball three times in the span of three years, and burnout played an important role in these decisions.
©G. Newman Lowrance/AP Images
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OB ASSESSMENTS
Source: Adapted from R.H. Friedman & R. H. Rosenman, “Association of Specific Overt Behavior Pattern with Blood and Cardiovascular Findings,” Journal of the American Medical Association 169 (1959), pp. 1286–69.
SCORING AND INTERPRETATION Sum your answers for the 12 items. If your scores sum up to 60 or above, you might be a Type A person, which means that you may perceive higher stress levels in your life and be more sensitive to that stress. If your scores sum up to 36 or below, chances are that you would be considered a Type B person. This means that you sense less stress in your life and are less sensitive to the stress that’s experienced.
TYPE A BEHAVIOR PATTERN Do you think that you’re especially sensitive to stress? This assessment is designed to measure the extent to which you’re a Type A person—someone who typically engages in hard-driving, competi- tive, and aggressive behavior. The items below refer to how you feel, think, and behave in differ- ent situations. Indicate your level of agreement with each item as honestly as possible using the response scale provided. (Instructors: Assessments on challenge stressors, hindrance stressors, and strain can be found in the PowerPoints in the Connect Library’s Instructor Resources and in the Connect assignments for this chapter.)
1 STRONGLY DISAGREE
2 DISAGREE
3 SLIGHTLY DISAGREE
4 NEUTRAL
5 SLIGHTLY
AGREE
6 AGREE
7 STRONGLY
AGREE
1. I hate to be late for appointments. _______
2. I’m a very competitive person. _______
3. I anticipate what others are going to say by nodding, and I sometimes inter- rupt and finish for them.
_______
4. I’m always rushed. _______
5. I’m impatient when waiting. _______
6. I go “all out” when trying to accomplish something. _______
7. I multitask, and am always thinking about what I have to do next. _______
8. I’m expressive and often gesture when speaking. _______
9. I do most things, even eating and walking, in a hurry. _______
10. I’m a driven person—I work hard and I’m serious about accomplishing my goals. _______
11. I often express feelings like frustration, irritation, and anger. _______
12. I’m very ambitious. _______
Type A people tend to be aggressive and competitive, they may be more prone to interpersonal conflict. Most of you would agree that conflict with peers and coworkers is an important stressor.
Second, in addition to the effect on stressors, the Type A Behavior Pattern is important because it influences the stress process itself.62 This effect of the Type A Behavior Pattern is easy to under- stand if you consider that hard-driving competitiveness makes people hypersensitive to demands
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that could potentially affect their progress toward their goal attainment. In essence, Type A individuals are simply more likely to appraise demands as being stressful rather than being benign.
Third, and perhaps most important, the Type A Behavior Pattern has been directly linked to coronary heart disease63 and other physiological, psychologi- cal, and behavioral strains.64 The size of the relationship between the Type A Behavior Pattern and these strains is not so strong as to suggest that if you’re a Type A person, you should immediately call 911. However, the linkage is strong enough to suggest that the risk of these problems is significantly higher for people who typically engage in Type A behaviors.
Another individual factor that affects the way people manage stress is the degree of social support that they receive. Social support refers to the help that people receive when they’re con- fronted with stressful demands, and there are at least two major types.65 One type of social support is called instrumental support, which refers to the help people receive that can be used to address the stressful demand directly. For example, if a person is overloaded with work, a coworker could provide instrumental support by taking over some of the work or offering suggestions about how to do the work more efficiently. A second type of social support is called emotional support. This type of support refers to the help people receive in addressing the emotional distress that accom- panies stressful demands. As an example, the supervisor of the individual who is overloaded with work might provide emotional support by showing interest in the employee’s situation and appearing to be understanding and sympathetic. As alluded to in these examples, social support may come from coworkers as well as from supervisors. However, social support also may be pro- vided by family members and friends outside the context of the stressful demand.66
Similar to the Type A Behavior Pattern, social support has the potential to influence the stress process in several different ways. However, most research on social support focuses on the ways that social support buffers the relationship between stressors and strains.67 For example, a supervi- sor who engages in supportive behaviors may make the same level of stressful demands seem more fair and less threatening.68 Subordinates of this supervisor, therefore, would tend to experience less strain than subordinates of another supervisor who does not engage in supportive behaviors. Moreover, high levels of social support provide a person with instrumental or emotional resources that are useful for coping with the stressor, which tends to reduce the harmful consequences of the stressor to that individual. With low levels of social support, the person does not have extra coping resources available, so the stressor tends to have effects that are more harmful. In essence, this perspective casts social support as a “moderator” of the relationship between stressors and strains (recall that moderators are variables that affect the strength of the relationship between two other variables). In this particular case, the relationship between stressors and strain tends to be weaker at higher levels of social support and stronger at lower levels of social support. Although not every research study has found support for the buffering effect of social support,69 the majority of research evidence has been supportive.70
S U M M A RY: W H Y A R E S O M E E M P LOY E E S M O R E “ ST R E S S E D” T H A N OT H E R S ? So what explains why some employees are more stressed than others? As shown in Figure 5-3, answering that question requires paying attention to the particular stressors the employee is
Social support from friends, coworkers, and family can be a big help in managing stress, even though it often occurs outside the stress- causing environment.
©Superstock
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experiencing, including hindrance and challenge stressors originating in both the work and non- work domains. However, feeling stressed also depends on how those stressors are appraised and coped with, and the degree to which physiological, psychological, and behavioral strains are experienced. Finally, answering the question depends on whether the employee is Type A or Type B and whether the employee has a high or low amount of social support. Understanding all of these factors can help explain why some people can shoulder stressful circumstances for weeks at a time, whereas others seem to be “at the end of their rope” when faced with even relatively minor job demands.
H O W I M P O R TA N T I S S T R E S S ?
In the previous sections, we described how stressors and the stress process influence strains and, ultimately, people’s health and well-being. Although these relationships are important to under- stand, you’re probably more curious about the impact that stressors have on job performance and organizational commitment, the two outcomes in our integrative model of OB. Figure 5-4 summarizes the research evidence linking hindrance stressors to performance and commitment, and Figure 5-5 summarizes the research evidence linking challenge stressors to performance and commitment. It is certainly true that there are important associations between nonwork stressors, strains, and other important outcomes.71 However, we limit our discussion here to relationships
5.5 How does stress affect job performance and organiza- tional commitment?
FIGURE 5-3 Why Are Some Employees More “Stressed” Than Others?
Stressors
Type A Behavior Pattern
Social Support
Hindrance Challenge
Work
Nonwork
STRESS Psychological Strains
Physiological Strains
Behavioral Strains
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FIGURE 5-4 Effects of Hindrance Stressors on Performance and Commitment
Hindrance stressors have a weak negative relationship with job performance. People who experience higher levels of hindrance stressors tend to have lower levels of task performance. Not much is known about the impact of hindrance stressors on Citizenship Behavior and Counterproductive Behavior.
N E G A T I V E
N E G A T I V E
Job Performance
Hindrance Stressors
Organizational Commitment
Hindrance Stressors
Hindrance stressors have a strong negative relationship with Organizational Commitment. People who experience higher levels of hindrance stressors tend to have lower levels of A�ective Commitment and Normative Commitment. Relationships with Continuance Commitment are weaker.
Represents a strong correlation (around .50 in magnitude).
Represents a moderate correlation (around .30 in magnitude).
Represents a weak correlation (around .10 in magnitude).
Sources: J.A. LePine, N.P. Podsakoff, and M.A. LePine, “A Meta-Analytic Test of the Challenge Stressor–Hindrance Stressor Framework: An Explanation for Inconsistent Relationships Among Stressors and Performance,” Academy of Management Journal 48 (2005), pp. 764–75; and N.P. Podsakoff, J.A. LePine, and M.A. LePine, “Differential Challenge Stressor–Hindrance Stressor Relationships with Job Attitudes, Turnover Intentions, Turnover, and Withdrawal Behavior: A Meta-Analysis,” Journal of Applied Psychology 92 (2007), pp. 438–54.
with work stressors rather than nonwork stressors, because this is where researchers have focused the most attention.
Figure 5-4 reveals that hindrance stressors have a weak negative relationship with job perfor- mance.72 A general explanation for this negative relationship is that hindrance stressors result in strains and negative emotions that reduce the overall level of physical, cognitive, and emo- tional energy that people could otherwise bring to their job duties.73 The detrimental effect that strains have on job performance becomes quite easy to understand when you consider the nature of the individual strains that we mentioned in the previous section. Certainly, you would agree that physiological, psychological, and behavioral strains in the form of illnesses, exhaustion, and drunkenness would detract from employee effectiveness in almost any job context. Additionally, these strains may be associated with negative emotions and thoughts that trigger counterproduc- tive work behavior.74
Figure 5-4 also reveals that hindrance stressors have a strong negative relationship with orga- nizational commitment.75 Why might this be? Well, hindrance stressors evoke strains, which are generally dissatisfying to people, and as we discussed in the previous chapter, satisfaction has a strong impact on the degree to which people feel committed to their organization.76 People who work at jobs that they know are causing them to feel constantly sick and exhausted will likely be dissatisfied with their jobs and feel less desire to stay with the organization and more desire to consider alternatives.
Turning now to challenge stressors, the story becomes somewhat different. As shown in Figure 5-5, challenge stressors have a weak relationship with job performance and a moderate
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FIGURE 5-5 Effects of Challenge Stressors on Performance and Commitment
Sources: J.A. LePine, N.P. Podsakoff, and M.A. LePine, “A Meta-Analytic Test of the Challenge Stressor–Hindrance Stressor Framework: An Explanation for Inconsistent Relationships Among Stressors and Performance,” Academy of Management Journal 48 (2005), pp. 764–75; and N.P. Podsakoff, J.A. LePine, and M.A. LePine, “Differential Challenge Stressor–Hindrance Stressor Relationships with Job Attitudes, Turnover Intentions, Turnover, and Withdrawal Behavior: A Meta-Analysis,” Journal of Applied Psychology 92 (2007), pp. 438–54.
Challenge stressors have a weak positive relationship with job performance. People who experience higher levels of challenge stressors tend to have higher levels of task performance. Not much is known about the impact of challenge stressors on Citizenship Behavior and Counterproductive Behavior.
Challenge stressors have a moderate positive relationship with Organizational Commitment. People who experience higher levels of challenge stressors tend to have higher levels of A�ective Commitment and Normative Commitment. Relationships with Continuance Commitment are weaker.
Job Performance
Challenge Stressors
Organizational Commitment
Challenge Stressors
Represents a strong correlation (around .50 in magnitude).
Represents a moderate correlation (around .30 in magnitude).
Represents a weak correlation (around .10 in magnitude).
relationship with organizational commitment. However, in contrast to the results for hindrance stressors, the relationships are positive rather than negative.77 In other words, employees who experience higher levels of challenge stressors also tend to have higher levels of job performance and organizational commitment. These relationships stand in sharp contrast with the lower levels of job performance and organizational commitment that result when employees confront higher levels of hindrance stressors. So what explains this difference? Although challenge stressors result in strains, which detract from performance and commitment, they also tend to trigger the type of positive emotions and problem-focused coping strategies that are characteristic of employees who are highly engaged in their jobs.78 The net benefits of these positive emotions, problem-focused coping strategies, and engagement outweigh the costs of the added strain, meaning that chal- lenge stressors tend to be beneficial to employee performance and commitment when both the positives and negatives are considered.79 These positive effects of challenge stressors have been demonstrated for executives,80 employees in lower-level jobs,81 and even students.82 It’s important to point out, however, that high levels of challenge stressors may have negative consequences that only become apparent over the long term. People whose jobs are filled with challenge stressors experience strains that can result in illness, but because they tend to be more satisfied, committed, and engaged with their jobs, they come to work anyway. This phenomenon, which is referred to as presenteeism, can result in prolonged illness, as well as the spread of illness, and ultimately a down- ward spiral of impaired performance and employee health.83 In fact, it may surprise you to learn that the reductions in productivity that result from presenteeism are even larger than reductions in productivity that result from employee absenteeism.84
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A P P L I C AT I O N : S T R E S S M A N AG E M E N T
Previously, we described how employee stress results in strains that cost organizations in terms of reduced employee performance and commitment. However, there are other important costs to consider that relate to employee health. Most organizations provide some sort of health care benefits for their employees,85 and all but the smallest organizations pay worker’s compensation insurance, the rates for which are determined, in part, by the nature of the job and the organiza- tion’s history of work-related injuries and illnesses. So what role does stress play in these costs?
Well, it turns out that these health-related costs are driven to a great extent by employee stress. Estimates are that between 60 and 90 percent of all doctor visits can be attributed to stress-related causes,86 and the cost of providing health care to people who experience high levels of stress appears to be approximately 50 percent higher than for those who experience lower levels of stress.87 Statistics from jobs in different industries indicate that the frequency of worker’s compen- sation claims is dramatically higher when the level of stress on the job is high. As one example, the frequency of claims was more than 800 percent higher for a copy machine distributor when the level of stress at the job site was high.88 So what do all these costs mean to you as a student of organizational behavior or as a manager?
For one thing, the relationship between stress and health care costs means that there may be huge dividends for organizations that learn how to manage their employees’ stress more effectively. In fact, surveys indicate that the vast majority of companies in the United States provide benefits, in one form or another, that are intended to help employees cope with stressful demands and reduce the associated strains.89 As an example of the lengths some companies go to manage their employ- ees’ stress and strains, Google provides access to massage, yoga, meditation, and even napping pods—reclining chairs with egg-shaped caps that fold down to cover the occupant’s head and torso.90 Next, we describe some more general approaches that organizations use to manage employee stress.
AS S E S S M E N T The first step in managing stress is to assess the level and sources of stress in the workplace. Although there are many ways to accomplish this type of evaluation, often referred to as a stress audit, managers can begin by asking themselves questions about the nature of the jobs in their organization to estimate whether high stress levels may be a problem.91 The first category of ques- tions might involve the degree to which the organization is going through changes that would likely increase uncertainty among employees. As an example, a merger between two companies might increase employees’ uncertainty about their job security and possible career paths. As another example, employees in an organization that has transitioned to team-based work might be con- cerned about how their individual performance contributions will be recognized and rewarded. A second category of questions might center on the work itself. These questions typically focus on the level and types of stressors experienced by the employees. The third category of questions could involve the quality of relationships between not only employees but also employees and the organization. Here, an important question to consider is whether organizational politics play a large role in administrative decisions.
R E D U C I N G ST R E S S O R S Once a stress audit reveals that stress may be a problem, the next step is to consider alternative courses of action. One general course of action involves managing stressors, which may be accom- plished in one of two ways. First, organizations could try to eliminate or significantly reduce stress- ful demands. As an example, companies sometimes institute policies that try to limit the demands faced by their employees. Xonex Relocation, a relocation services company located in New Castle, Delaware, prohibits employees from working during lunch and eating at their desks, and they struc- tured workflow so that employees don’t leave the office in the evening with unfinished work hang- ing over their heads.92 This practice is consistent with research showing that health care workers
5.6 What steps can organiza- tions take to manage employee stress?
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become much less likely to comply with rules regarding hand hygiene (washing their hands before interacting with a new patient) as demands build up over the course of a long shift and that compli- ance rates with the same hand hygiene rules increase significantly when longer breaks are given between shifts.93 As another example of this approach, 19 percent of organizations in one recent sur- vey used job sharing to reduce role overload and work–family conflict.94 Job sharing doesn’t mean splitting one job into two but rather indicates that two people share the responsibilities of a single job, as if the two people were a single performing unit. The assumption underlying the practice is that “although businesses are becoming 24–7, people don’t.”95 You might be tempted to believe that job sharing would be most appropriate in lower-level jobs, where responsibilities and tasks are lim- ited in number and relatively easy to divide. In actuality, job sharing is being used even at the highest levels in organizations. At Boston–based Fleet Bank, for example, two women shared the position of vice president for global markets and foreign exchange for six years until their department was dissolved when Fleet was acquired by Bank of America. During this time, they had one desk, one chair, one computer, one telephone, one voicemail account, one set of goals, and one performance review. They each worked 20–25 hours a week and performed the role effectively and seamlessly.96
Another example of how companies reduce stressors is employee sabbaticals. A sabbatical gives employees the opportunity to take time off from work to engage in an alternative activity. Estimates indicate that approximately 11 percent of large companies offer paid sabbaticals, and almost one-third offer unpaid sabbaticals.97 American Express, for example, allows employees who have 10 years’ tenure to apply for a paid sabbatical of up to six months. These employees are encouraged to work for a nonprofit organization or school, but the institution cannot have religious or political affiliations.98 PricewaterhouseCoopers also offers paid sabbaticals for up to six months for personal growth reasons or for work in social services; this program is available to employees with as little as two years’ experience.99 Relative to job sharing, sabbaticals allow for a cleaner break from the stressful routine for a fairly lengthy period of time, so for the period of the sabbatical, the employee’s stress may be quite low. In fact, some companies are experimenting with discretionary vacations policies that allow employees to take time off whenever they feel they need it (and for however long they feel they need it).100 However, because the level of stressors never changes in the job itself, the employee is likely to experience the same level of stress upon returning from the sabbatical or vacation.
The use of napping pods is just one example of how
far companies go to help manage employee stress
and strains.
©National Geographic Creative/Alamy
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P R OV I D I N G R E S O U R C E S Although reducing stressors may reduce the overall level of stress that a person experiences, this approach is likely to be most beneficial when the focus of the effort is on hindrance stress- ors rather than challenge stressors.101 Hindrance stressors such as role ambiguity, conflict, and overload not only cause strain, but also decrease commitment and job performance. In contrast, though challenge stressors such as time pressure and responsibility cause strain, they also tend to be motivating and satisfying, and as a consequence, they generally are positively related to com- mitment and performance.
So as a supplement to reducing stressors, organizations can provide resources that help employ- ees cope with stressful demands.102 One way that organizations provide resources to employees is through training interventions aimed at increasing job-related competencies and skills. Employees who possess more competencies and skills can handle more demands before they begin to appraise these demands as overly taxing or exceeding their capacity. Training that increases employee com- petencies and skills is also beneficial to the extent that it promotes a sense that the demands are more controllable, and as we discussed in a previous section, a sense of control promotes problem- focused coping strategies. As an example of the effectiveness of this type of practice, consider the results of a study that examined the benefits of a 20-hour training program in which employees developed skills in stress management, developing a supportive social network, conflict resolu- tion, communication, and assertiveness. Seven months later, employees in 17 organizations who went through the training program felt they possessed more resources to cope with stress and had fewer symptoms of strain than employees who didn’t go through the training program.103
A second way that organizations provide resources to employees so that they can cope more effectively is through supportive practices that help employees manage and balance the demands that exist in the different roles they have.104 As an example, most organizations allow employees to take occasional breaks so that they can rest and recharge their physical, cognitive, and emo- tional energies. In fact, researchers have found that breaks are better at restoring these energies if employees are allowed to engage in an activity they prefer and if the break is given earlier in the shift.105 Although we only have room in this chapter to describe a few more supportive practices, Table 5-4 lists many examples, as well as the percentage of organizations that were found to use them in a survey of almost 400 organizations.106
The first supportive practice example in this list is f lextime, which was used by 56 percent of the organizations in the survey. Organizations that use f lextime give employees some degree
TABLE 5-4 Supportive Practices Used by Organizations
PRACTICE % OF SMALL
ORGANIZATIONS % OF MEDIUM
ORGANIZATIONS % OF LARGE
ORGANIZATIONS
Flextime 57 56 56
Part-time telecommuting 36 33 43
Compressed workweek 27 30 41
Bring child to work if needed 43 25 18
Full-time telecommuting 14 18 24
Lactation program 8 20 28
Onsite child care 1 3 13
Company-supported child care center
0 1 11
Source: Adapted from M.E. Burke, “2005 Benefits Survey Report,” Society of Human Resource Management, 2005
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of latitude in terms of which hours they need to be present at the workplace. Flexible working hours give employees the ability to cope with demands away from work, so they don’t have to worry about these demands while they’re at work. Researchers have found that while occa- sional use of f lextime by employees is quite beneficial, chronic reliance on it may interfere with the completion of work tasks, and perhaps increase stressful demands.107 As another example, 37 percent of the organizations in the survey allowed telecommuting on a part-time basis. By providing the opportunity to work at home or some other location with computer access, employees are put in a better position to cope with demands that might be impossible to cope with otherwise. Compressed workweeks, which is used by approximately one-third of all companies in the survey, allows full-time employees to work additional hours on some days and have shorter days or time off on others. As with f lextime and telecommuting, compressed workweeks give employees the ability to manage both work and nonwork role demands. We should also note that practices such as f lextime, telecommuting, and compressed workweeks not only facilitate stress management but also appear to have other benefits. At companies such as Xerox, Corning, and UPS, implementing these types of practices resulted in improve- ments in productivity, innovation, absenteeism, and turnover.108 Moreover, although these practices have a range of benefits to employees who actually use them, there is also evidence that their availability alone may be beneficial with regard to enhancing employee job attitudes and commitment.109
Despite their benefits, companies occasionally decide to end supportive practices during tough times or transitions when the value of employee interaction is amplified. As an example, when she was the newly appointed Yahoo CEO, Marissa Mayer banned the practice of telecommuting to increase employee productivity and encourage richer face-to-face collaboration among employ- ees.110 Finally, it’s important to note that managers sometimes attribute employees’ use of these types of practices to low organizational commitment, and when this happens, employees are less likely to receive pay raises and promotions.111 Perhaps this is why supportive practices are fre- quently underutilized by employees.112
R E D U C I N G ST R A I N S As an alternative to managing stressors, many organizations use practices that reduce strains.113 One type of strain-reducing practice involves training in relaxation techniques, such as progressive muscle relaxation, meditation, and miscellaneous calming activities like taking walks, writing in a journal, and deep breathing.114 Although these relaxation techniques differ, the basic idea is the same—they teach people how to counteract the effects of stressors by engag- ing in activities that slow the heart rate, breathing rate, and blood pressure.115 As an example of a relatively simple relaxation technique, consider the recommendation of Herbert Benson, a physi- cian and president of the Mind/Body Medical Institute in Boston. He suggests that people under stress should repeat a word, sound, prayer, phrase, or motion for 10–20 minutes once or twice a day and, during that time, try to completely ignore other thoughts that may come to mind.116 As another example, recall the case of Naomi Henderson, the market research firm CEO who literally became paralyzed by all the stress in her job. Well, we’re happy to say that Henderson got better, but she was able to do so only after being treated by a physician who helped her learn how to reduce her own strains by doing “mental aerobics.” Those exercises involved tak- ing breaks every hour to stretch and do deep breathing, taking short naps to replenish energy, and learning how to say no politely to unreasonable demands.117 As a final example, BlueCross BlueShield of Tennessee has trained approximately one-fifth of its 4,500 employees in the use of biofeedback technology to reduce the stress associated with financial uncertainties stemming from the economic downturn.118 The training uses a heart monitor and software to help people learn how to change their heart rhythms from an irregular pattern to a regular pattern by shift- ing from an anxious emotional state to a more positive one. Apparently, the training worked: A preliminary evaluation of the program revealed that those employees who received biofeedback training reported being less exhausted and anxious than they were before the training.
A second general category of strain-reducing practices involves cognitive–behavioral techniques. In general, these techniques attempt to help people appraise and cope with stressors in a more
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rational manner.119 To under- stand what these techniques involve, think of someone you know who not only exagger- ates the level and importance of stressful demands but also predicts doom and disaster after quickly concluding that the demands simply cannot be met. If you know someone like this, you might recommend cognitive–behavioral training that involves “self-talk,” a tech- nique in which people learn to say things about stressful demands that reflect rational- ity and optimism. So, when confronted with a stressful demand, this person might be trained to say, “This demand isn’t so tough; if I work hard I can accomplish it.” Cognitive– behavioral training also typi- cally involves instruction about tools that foster effec- tive coping. So, in addition to the self-talk, the person might be trained on how to priori- tize demands, manage time, communicate needs, and seek support.120 As an example of this type of training, Aus- tin, Texas–based Freescale Semiconductor Inc. trains its 6,000 employees how to be “resilient” to stressful situations, such as those that occur when employees have to interact with team members from other departments in the organization that do not share the same goals.121 The training teaches employees strategies, such as plan- ning for the stressful encounter and using social support, which give them the ability to use a problem-focused approach to coping with their stress. See our OB at the Bookstore feature for an example of how a cognitive–behavioral approach can be used to train people to become more resilient to stress.
A third category of strain-reducing practices involves health and wellness programs. For exam- ple, almost three-quarters of the organizations in one survey reported having employee assistance programs intended to help people with personal problems such as alcoholism and other addictions. More than 60 percent of organizations in this survey provided employees with wellness programs and resources. The nature of these programs and resources varies a great deal from organization to organization, but in general, they’re comprehensive efforts that include health screening (blood pressure, cholesterol levels, pulmonary functioning) and health-related courses and information. Other examples of health and wellness programs intended to reduce strain include smoking ces- sation programs, onsite fitness centers or fitness center memberships, and weight loss and nutri- tion programs.122 Today, health and wellness programs that encourage and support exercise are a growing trend. As an example, Humana, a Fortune 100 health care administration company, implemented a program that allows the 8,500 employees who work at their corporate headquar- ters in Louisville, Kentucky, to borrow bikes for free from kiosks located throughout the city.123 As another example, consider how Grant Thornton, the Chicago–based tax, audit, and advisory firm,
People can learn how to reduce strain using bio- feedback technology.
©minemero/Getty Images RF
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OB AT THE BOOKSTORE WORK WITHOUT STRESS by Derek Roger and Nick Petrie (Chicago: McGraw-Hill, 2017).
Defining stress properly as rumination shifts the source of stress to learned and hence change- able behavior, and change may well be urgently needed.
With those words, authors Roger and Petrie provide their per- spective on stress and how it might be managed. Their starting point is the premise that stress equals pressure plus rumination. When we confront a demand, we experience pressure that signals the need to increase the level of energy that’s allocated to the demand. But this pressure only becomes stress when we allow our- selves to ruminate about it. Rumination simply refers to the contin- uous rehashing of emotionally laden thoughts while trying to meet the demand or after the demand has passed. The authors argue that there is nothing wrong with pressure. It triggers the release of adrenaline that helps us deal with the demand, but this quickly dissipates after the demand is removed. When we add rumination to the pressure, however, the elevation of adrenaline and other hormones is prolonged, and following from this, harmful strains, including reduced effectiveness in our work and nonwork roles, are more likely to occur
Given the idea that stress = pressure + rumination, it’s easy to appreciate the author’s claim that the key to becoming resilient
to stress is to stop ruminating. Easier said than done, right? Fortunately, the book is full of sug- gestions that could help us learn how to let things go. For example, the authors suggest that we should keep things in perspective and not imagine events to be bigger than they really are. As other examples, the authors argue that we should stay in the present in a way that’s emotionally detached, and not think about “what ifs,” what it would be like if things turned out differently, and what other people might think of us. The authors also suggest things that managers can do to help their employees ruminate less. For example, the use of humor by managers could help employees keep things in perspective. Managers could also depersonalize their communication and avoid saying things that give employees something about which to ruminate.
©Roberts Publishing Services
encourages exercise: It spent more than $200,000 helping 230 of its employees train and compete in a marathon. It also reimburses employees for participation in up to three races or walks per year, and it even set up running clubs in each of its 50 offices.124 Investments in exercise make sense because the effects of strains, such as burnout and depression, can be reduced with physical activity. In particular, exercise can prevent a downward spiral where an employee feels burned out, and this feeds into depression, which increases burnout, and so on. But, how well do these efforts actually pay off?125 L.L.Bean initiated a comprehensive wellness program for roughly 5,000 of its employees that included health assessments, health coaching, and onsite fitness and nutrition programs, and found that the program had a positive return on investment after the first year and reduced health care costs by almost $400 per employee.126
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5.1 Stress refers to the psychological response to demands when there’s something at stake for the individual and coping with these demands would tax or exceed the individual’s capacity or resources. Stressors are the demands that cause the stress response, and strains are the negative consequences of the stress response.
5.2 Stressors come in two general forms: challenge stressors, which are perceived as opportunities for growth and achievement, and hindrance stressors, which are perceived as hurdles to goal achievement. These two stressors can be found in both work and nonwork domains.
5.3 Coping with stress involves thoughts and behaviors that address one of two goals: addressing the stressful demand or decreasing the emotional discomfort associated with the demand.
5.4 Individual differences in the Type A Behavior Pattern affect how people experience stress in three ways. Type A people tend to experience more stressors, appraise more demands as stressful, and are prone to experiencing more strains.
5.5 The effects of stress depend on the type of stressor. Hindrance stressors have a weak negative relationship with job performance and a strong negative relationship with organizational commitment. In contrast, challenge stressors have a weak positive relationship with job performance and a moderate positive relationship with organizational commitment.
5.6 Because of the high costs associated with employee stress, organizations assess and manage stress using a number of different practices. In general, these practices focus on reducing or eliminating stressors, providing resources that employees can use to cope with stressors, or trying to reduce the strains.
TA K E AWAY S
K E Y T E R M S
• Stress p. 127 • Stressors p. 127 • Strains p. 127 • Transactional theory of stress p. 127 • Primary appraisal p. 127 • Benign job demands p. 128 • Hindrance stressors p. 128 • Challenge stressors p. 128 • Role conflict p. 128 • Role ambiguity p. 128 • Role overload p. 129 • Daily hassles p. 130 • Time pressure p. 130 • Work complexity p. 130 • Work responsibility p. 130 • Work–family conflict p. 131
• Negative life events p. 131 • Financial uncertainty p. 131 • Family time demands p. 132 • Personal development p. 132 • Positive life events p. 132 • Secondary appraisal p. 132 • Coping p. 132 • Behavioral coping p. 133 • Cognitive coping p. 133 • Problem-focused coping p. 133 • Emotion-focused coping p. 133 • Burnout p. 137 • Type A Behavior Pattern p. 137 • Social support p. 139 • Instrumental support p. 139 • Emotional support p. 139
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5.1 Prior to reading this chapter, how did you define stress? Did your definition of stress reflect stressors, the stress process, strains, or some combination?
5.2 Describe your dream job and then provide a list of the types of stressors that you would expect to be present. How much of your salary, if any at all, would you give up to eliminate the most important hindrance stressors? Why?
5.3 If you had several job offers after graduating, to what degree would the level of challenge stressors in the different jobs influence your choice of which job to take? Why?
5.4 How would you assess your ability to handle stress? Given the information provided in this chapter, what could you do to improve your effectiveness in this area?
5.5 If you managed people in an organization in which there were lots of hindrance stressors, what actions would you take to help ensure that your employees coped with the stressors using a problem-focused (as opposed to emotion-focused) strategy?
D I S C U S S I O N Q U E S T I O N S
Honeywell has a history of evolving through acquisitions into high growth sectors of related business, and there is no indication that this trend is slowing. In fact, the company has placed increased emphasis on software and other businesses that address challenges related to energy, security, safety, productivity, and urbanization. However, while Honeywell continues to grow and evolve, the company also faces mounting pressure in some of its businesses and has reacted with initiatives intended to control costs and increase company performance. As an example, Honeywell’s Aerospace Division responded to an extended slowdown in the aerospace industry by laying off employees in 2015 and 2016. The division also implemented weeklong furloughs (unpaid time off) for employees not involved in manufacturing and sales.
Honeywell also believes that improvements in company performance require teamwork, idea sharing, and faster decision making, and that this is best accomplished through face-to-face inter- action among employees. To facilitate this, the company decided to end its telecommuting option for employees not involved in sales or field service. Honeywell had permitted employees to work remotely, at home if they wished, for several reasons. First, Honeywell employees are based in more than a thousand sites in over 70 countries, and they often work on important projects with other employees who may be located half-way across the world. The projects may be engaging, but trying to coordinate across time zones can be quite difficult during normal working hours. Second, telecommuting allows employees to work when and where they feel they are most productive. Employees who work remotely can chose to avoid the daily commute, office politics and distractions, and the hassle of accomplishing nonwork demands. Finally, telecommuting is very popular with millennial engineers and scientists who are comfortable using technology to collaborate and who have other employment options.
The change in Honeywell’s long-standing policy will be especially difficult for employees who have built their lives around the flexibility of working remotely. As an example, choices regarding where to live may haunt employees who now face the prospect of commuting back and forth to distant Honeywell offices each day. To some Honeywell employees, however, there may be a bright side to the change in policy. After putting in their 40 hours in the office and commuting each day, employees may not feel as compelled to deal with work-related issues that come up in the evenings or on weekends
5.1 Describe how the change in Honeywell’s telecommuting policy likely influenced the types of work stressors experienced by the company’s employees. How has the change in policy likely influenced nonwork stressors?
C A S E : H O N E Y W E L L
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5.2 Given the change in stressors resulting from the change in the telecommuting policy, what can you predict about the commitment and job performance of Honeywell’s employees? Explain.
5.3 Identify steps that Honeywell could take to mitigate the potential for negative consequences resulting from the change in the company’s telecommuting policy.
Sources: D. DePass, “Honeywell Ends Telecommuting Option,” Star Tribune, October 21, 2016, http://www.startribune.com/ honeywell-ends-telecommuting-option/397929641/; Honeywell, “HealthResource,” http://www51.honeywell.com/hrsites/ healthresource/health_about.html (accessed March 10, 2017); Honeywell, “Our History,” https://www.honeywell.com/who- we-are/our-history (accessed March 10, 2017); R. Randazzo. “Honeywell Employees Told to Take Furloughs,” The Arizona Republic, May 25, 2016, http://www.azcentral.com/story/money/business/economy/2016/05/25/honeywell-employees-asked- take-furloughs/84927666/; and R. Randazzo, “Honeywell Announces More Layoffs,” The Arizona Republic, October 20, 2016, http://www.azcentral.com/story/money/business/jobs/2016/10/20/honeywell-announces-more-layoffs/92490690/.
E X E R C I S E : M A N AG I N G S T R E S S
The purpose of this exercise is to explore ways of managing stress to reduce strain. This exercise uses groups, so your instructor will either assign you to a group or ask you to create your own group. The exercise has the following steps:
5.1 One method of managing stress is finding a way to reduce the hindrance stressors encoun- tered on the job. In your group, describe the hindrance stressors that you currently are expe- riencing. Each student should describe the two to three most important hindrance stressors using the accompanying chart. Other students should then offer strategies for reducing or alleviating these stressors.
School
Time with Friends
Work Time with Family
Personal Relaxation
HINDRANCE STRESSORS EXPERIENCED STRATEGIES FOR MANAGING STRESSORS
Role conflict:
Role ambiguity:
Role overload:
Daily hassles:
Work Itself
5.2 Another method of managing stress is to improve work–life balance. The accompanying fig- ure represents how “waking hours” are divided among five types of activities: school, work, personal relaxation, time with friends, and time with family. Draw two versions of your own circle: your waking hours as they currently are and your waking hours as you wish them to be. Other students should then offer strategies for making the necessary life changes.
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5.4 Class discussion (whether in groups or as a class) should center on two issues. First, many of the stress-managing factors, especially in steps 2 and 3, take up precious time. Does this make them an ineffective strategy for managing stress? Why or why not? Second, consider your Type A score in the OB Assessments for this chapter. If you are high on Type A, does that make these strategies more or less important?
Adapted from D. Marcic, J. Seltzer, and P. Vail. “Organizational Behavior: Experiences and Cases”. Cincinnati, OH: South- Western, 2001.
5.3 A third method of managing stress is improving hardiness—a sort of mental and physical health that can act as a buffer, preventing stress from resulting in strain. The following table lists a number of questions that can help diagnose your hardiness. Discuss your answers for each question; then, with the help of other students, brainstorm ways to increase that hardi- ness factor.
5.1 Miller, J., and M. Miller. “Get a Life!” Fortune, November 28, 2005, pp. 109–24, www.proquest.com (March 27, 2007).
5.2 Sauter, S.; L. Murphy; M. Colligan; N. Swan- son; J. Hurrell Jr.; F. Scharf Jr.; R. Sinclair; P. Grubb; L. Goldenhar; T. Alterman; J. Johnston; A. Hamilton; and J. Tisdale. Stress at Work, DHHS (NIOSH) Publication No. 99-101. Cincinnati, OH: U.S. Department of Health and Human Services, Public Health Service,
Centers for Disease Control and Preven- tion, National Institute for Occupational Safety and Health, 1999.
5.3 Johnson, S.R., and L.D. Eldridge. Employee- Related Stress on the Job: Sources, Conse- quences, and What’s Next, Technical Report #003. Rochester, NY: Genesee Survey Ser- vices, Inc., 2004.
5.4 Lazarus, R.S., and S. Folkman. Stress, Appraisal, and Coping. New York: Springer, 1984.
5.5 Bliese, P.D.; J.R. Edwards; and S. Sonnentag. “Stress and Well-Being at Work: A Century of Empirical Trends Reflecting Theoretical and Societal Influences.” Journal of Applied Psychol- ogy (2017). Advance online publication. http://dx.doi.org/10 .1037/apl0000109.
5.6 Lazarus and Folkman, Stress, Appraisal, and Coping.
5.7 Ibid.
5.8 LePine, M.A.; Y. Zhang; E.R. Crawford;
E N D N OT E S
HARDINESS FACTOR STRATEGIES FOR IMPROVING FACTOR
Relaxation: Do you spend enough time read- ing, listening to music, meditating, or pursuing your hobbies?
Exercise: Do you spend enough time doing cardiovascular, strength, and flexibility sorts of exercises?
Diet: Do you manage your diet adequately by eating healthily and avoiding foods high in fat?
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and B.L. Rich. “Turn- ing Their Pain to Gain: Charismatic Leader Influence on Follower Stress Appraisal and Job Performance.” Academy of Manage- ment Journal 59 (2016), pp. 1036–59.
5.9 LePine, J.A.; M.A. LePine; and C.L. Jackson. “Challenge and Hindrance Stress: Relationships with Exhaustion, Motivation to Learn, and Learn- ing Performance.” Journal of Applied Psychology 89 (2004), pp. 883–91; LePine, J.A.; N.P. Podsakoff; and M.A. LePine. “A Meta-Analytic Test of the Challenge Stressor– Hindrance Stressor Framework: An Explanation for Incon- sistent Relationships among Stressors and Performance.” Academy of Management Journal 48 (2005), pp. 764–75; and Podsakoff, N.P.; J.A. LePine; and M.A. LePine. “Differential Challenge Stressor– Hindrance Stressor Relationships with Job Attitudes, Turnover Intentions, Turnover, and Withdrawal Behav- ior: A Meta-Analysis.” Journal of Applied Psychology 92 (2007), pp. 438–54.
5.10 Rodell, J.B., and T.A. Judge. “Can ‘Good’ Stressors Spark ‘Bad’ Behaviors? The Mediat- ing Role of Emotions in the Links of Challenge and Hindrance Stress- ors with Citizenship
and Counterproductive Behaviors.” Journal of Applied Psychology 94 (2009), pp. 1438–51.
5.11 Cavanaugh, M.A.; W.R. Boswell; M.V. Roehling; and J.W. Boudreau. “An Empirical Examination of Self-Reported Work Stress among U.S. Managers.” Journal of Applied Psychology 85 (2000), pp. 65–74.
5.12 LePine, J.A.; M.A. LePine; and J.R. Saul. “Relationships among Work and Non-Work Challenge and Hin- drance Stressors and Non-Work and Work Criteria: A Theory of Cross-Domain Stressor Effects.” In Research in Occupational Stress and Well Being, ed. P.L. Per- rewé and D.C. Ganster. San Diego: JAI Press/ Elsevier, 2006, pp. 35–72.
5.13 Kahn, R.; D. Wolfe; R. Quinn; J. Snoek; and R.A. Rosenthal. Organizational Stress: Studies in Role Conflict and Ambiguity. New York: Wiley, 1964; and Pearce, J. “Bringing Some Clarity to Role Ambiguity Research.” Academy of Manage- ment Review 6 (1981), pp. 665–74.
5.14 Kahn et al., Organi- zational Stress; Rizzo, J.R.; R.J. House; and S.I. Lirtzman. “Role Conflict and Ambiguity in Complex Organiza- tions.” Administrative Science Quarterly 15 (1970), pp. 150–63; and Ritter, K.J.; R.A.
Matthews; M.T. Ford; and A.A. Henderson. “Understanding Role Stressors and Job Satisfaction Over Time Using Adaptation Theory.” Journal of Applied Psychology 101 (2016), pp. 1655–69.
5.15 Ibid.
5.16 Kahn et al., Organiza- tional Stress.
5.17 Narayanan, L.; S. Menon; and P. Spector. “Stress in the Work- place: A Comparison of Gender and Occu- pations.” Journal of Organizational Behavior 20 (1999), pp. 63–74.
5.18 Miller and Miller, “Get a Life!”
5.19 Chamerlain, K., and S. Zika. “The Minor Events Approach to Stress: Support for the Use of Daily Hassles.” British Journal of Psy- chology 18 (1990), pp. 469–81.
5.20 Mandel, M. “The Real Reasons You’re Working So Hard . . . and What You Can Do about It.” Business- Week, October 3, 2005, pp. 60–67, http://www .proquest.com (accessed March 27, 2007).
5.21 Kahn et al., Organiza- tional Stress.
5.22 O’Connor, A. “Crack- ing under Pressure? It’s Just the Opposite for Some; Sick of Work— Last of Three Articles: Thriving under Stress.” The New York Times, Section A, Column 5, September 10, 2004,
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p. 1, http://www .proquest.com (accessed March 27, 2007).
5.23 Schaubroeck, J.; D.C. Ganster; and B.E. Kemmerer. “Job Com- plexity, ‘Type A’ Behav- ior, and Cardiovascular Disorder: A Prospective Study.” Academy of Management Journal 37 (1994), pp. 426–39.
5.24 McCall, M.W.; M.M. Lombardo; and A.M. Morrison. The Lessons of Experience: How Successful Executives Develop on the Job. Lex- ington, MA: Lexington Books, 1988.
5.25 Edwards, J.R., and R.V. Harrison. “Job Demands and Worker Health: Three-Dimensional Reexamination of the Relationships between Person-Environment Fit and Strain.” Journal of Applied Psychology 78 (1993), pp. 628–48; and French, J.R.P. Jr.; R.D. Caplan; and R.V. Harrison. The Mecha- nisms of Job Stress and Strain. New York: Wiley, 1982.
5.26 Abrahm, S. “From Wall Street to Control Tower.” The New York Times, March 20, 2010, http://www.nytimes .com/2010/03/21/jobs/ 21preoccupations.html.
5.27 Neufeld, S. “Work- Related Stress: What You Need to Know” (n.d.), http://healthy- place.healthology .com/focus_article .asp?f5mentalhealth& c5work_related_stress.
5.28 Hoobler, J.M.; S.J. Wayne; and G. Lem- mon. “Bosses’ Percep- tions of Family–Work Conflict and Women’s Promotability: Glass Ceiling Effects.” Acad- emy of Management Journal 52 (2009), pp. 939–57.
5.29 Crouter, A. “Spillover from Family to Work: The Neglected Side of the Work–Family Interface.” Human Relations 37 (1984), pp. 425–42; and Rice, R.W.; M.R. Frone; and D.B. McFarlin. “Work and Nonwork Conflict and the Perceived Qual- ity of Life.” Journal of Organizational Behavior 13 (1992), pp. 155–68.
5.30 Dahm, P.C.; T.M. Glomb; C. Flaherty Manchester; and S. Leroy. “Work-Family Conflict and Self- Discrepant Time Allocation at Work.” Journal of Applied Psychology 100 (2015), pp. 767–92; Netemeyer, R.G.; J.S. Boles; and R. McMurrian. “Develop- ment and Validation of Work–Family Conflict and Family–Work Conflict Scales.” Journal of Applied Psy- chology 81 (1996), pp. 400–10; and Shockley, K.M., and T.D. Allen. “Deciding Between Work and Family: An Episodic Approach.” Personnel Psychology 68 (2015), pp. 283–318.
5.31 Wayne, J.H.; M.M. Butts; W.J. Casper; and T.D. Allen. “In Search of Balance: A
Conceptual and Empiri- cal Integration of Multiple Meanings of Work–Family Balance.” Personnel Psychology 70 (2017), pp. 167–210.
5.32 Nohe, C.; L.L. Meier; K. Sonntag; and A. Michel. “The Chicken or the Egg? A Meta- Analysis of Panel Stud- ies of the Relationship Between Work–Family Conflict and Strain.” Journal of Applied Psychology 100 (2015), pp. 522–36.
5.33 Ng, T.W.H., and D.C. Feldman. “The Effects of Organizational and Community Embeddedness on Work-to-Family and Family-to-Work Con- flict.” Journal of Applied Psychology 97 (2012), pp. 1233–51.
5.34 Cohen, S.; D.A. Tyrrell; and A.P. Smith. “Negative Life Events, Perceived Stress, Negative Affect, and Susceptibility to the Common Cold.” Jour- nal of Personality and Social Psychology 64 (1993), pp. 131–40.
5.35 Holmes, T.H., and R.H. Rahe. “The Social Readjustment Rating Scale.” Journal of Psychosomatic Research 11 (1967), pp. 213–18; and U.S. Department of Health and Human Services, Office of the Surgeon General. “Mental Health: A Report of the Surgeon General” (n.d.), http:// www.surgeongeneral.gov/ library/mentalhealth/ home.html.
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5.36 Frauenheim, E., and J. Marquez. “Reduc- ing the Fear Factor.” Workforce Management, November 18, 2008, pp. 17–22.
5.37 LePine et al., “Relation- ships among Work and Non-Work Challenge and Hindrance Stress- ors and Non-Work and Work Criteria.”
5.38 Lazarus and Folkman, Stress, Appraisal, and Coping.
5.39 Folkman, S.; R.S. Lazarus; C. Dunkel- Schetter; A. Delongis; and R.J. Gruen. “Dynamics of a Stress- ful Encounter: Cognitive Appraisal, Coping, and Encounter Outcomes.” Journal of Personality and Social Psychology 50 (1986), pp. 992–1003.
5.40 Latack, J.C., and S.J. Havlovic. “Coping with Job Stress: A Conceptual Evaluation Framework for Coping Measures.” Journal of Organizational Behavior 13 (1992), pp. 479–508.
5.41 Ibid.
5.42 Latack and Havlovic, “Coping with Job Stress.”
5.43 Kahn et al., Organi- zational Stress; and Lazarus and Folkman, Stress, Appraisal, and Coping.
5.44 Latack and Havlovic, “Coping with Job Stress.”
5.45 Ibid.
5.46 Lazarus, R.S. “Progress on a Cognitive–
Motivational–Relational Theory of Emotion.” American Psychologist 46 (1991), pp. 819–34.
5.47 Daniels, C. “The Last Taboo: It’s Not Sex. It’s Not Drinking. It’s Stress—and It’s Soar- ing.” Fortune, October 28, 2002, pp. 136–44, www.proquest.com (accessed March 27, 2007).
5.48 Miller and Miller, “Get a Life!”
5.49 Selye, H. The Stress of Life. New York: McGraw-Hill, 1976.
5.50 Cannon, W.B. “Stresses and Strains of Homeo- stasis.” American Jour- nal of Medical Science 189 (1935), pp. 1–14; and Goldstein, D.L. Stress, Catecholamines, & Cardiovascular Dis- ease. New York: Oxford University Press, 1995.
5.51 Kahn, R.L., and P. Byosiere. “Stress in Organizations.” In Handbook of Industrial and Organizational Psy- chology, Vol. 4, ed. M.D. Dunette; J.M.R. Hough; and H.C. Triandis. Palo Alto, CA: Consulting Psychologists Press, 1992, pp. 517–650.
5.52 Defrank, R.S., and J.M. Ivancevich. “Stress on the Job: An Executive Update.” Academy of Management Executive 12 (1998), pp. 55–66; and Haran, C. “Do You Know Your Early Warning Stress Signals?” 2005, http:// abcnews.go.com/ Health/Healthology/ story?id=421825.
5.53 Stöppler, M.C. “High Pressure Work Deadlines Raise Heart Attack Risk,” http:// stress.about.com/ od/heartdissease/a/ deadline.htm (accessed October 1, 2005).
5.54 Leitner, K., and M.G. Resch. “Do the Effects of Job Stressors on Health Persist over Time? A Longitudinal Study with Observa- tional Stress Measures.” Journal of Occupational Health Psychology 10 (2005), pp. 18–30.
5.55 Gonzalez-Mule, E.; and B. Cockburn. “Worked to Death: The Relation- ships of Job Demands and Job Control with Mortality.” Personnel Psychology 70 (2017), pp. 73–112.
5.56 Defrank and Ivancevich, “Stress on the Job”; and Haran, “Do You Know?”
5.57 Pines, A., and D. Kafry. “Occupational Tedium in the Social Services.” Social Work 23 (1978), pp. 499–507.
5.58 ESPN.com. “Mentally Tired Favre Tells Pack- ers His Playing Career Is Over,” March 4, 2008, http://sports .espn.go.com/nfl/news/ story?id=3276034.
5.59 Packers.com. “Brett Favre Retirement Press Conference Transcript— March 6,” March 6, 2008, http://packers .com.
5.60 Defrank and Ivancev- ich, “Stress on the Job.”
5.61 Friedman, M., and R.H. Rosenman. Type
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A Behavior and Your Heart. New York: Knopf, 1974.
5.62 Ganster, D.C. “Type A Behavior and Occu- pational Stress. Job Stress: From Theory to Suggestion.” Journal of Organizational Behavior Management 8 (1987), pp. 61–84.
5.63 Friedman and Rosen- man, Type A Behavior; and Yarnold, P.R., and F.B. Bryant. “A Note on Measurement Issues in Type A Research: Let’s Not Throw Out the Baby with the Bath Water.” Journal of Per- sonality Assessment 52 (1988), pp. 410–19.
5.64 Abush, R., and E.J. Burkhead. “Job Stress in Midlife Working Women: Relationships among Personality Type, Job Characteris- tics, and Job Tension.” Journal of Counseling Psychology 31 (1984), pp. 36–44; Dearborn, M.J., and J.E. Hastings. “Type A Personality as a Mediator of Stress and Strain in Employed Women.” Journal of Human Stress 13 (1987), pp. 53–60; and Howard, J.H.; D.A. Cunningham; and P.A. Rechnitzer. “Role Ambi- guity, Type A Behavior, and Job Satisfaction: Moderating Effects on Cardiovascular and Biochemical Responses Associated with Coro- nary Risk.” Journal of Applied Psychology 71 (1986), pp. 95–101.
5.65 Cooper, C.L.; P.J. Dewe; and M.P.
O’Driscoll. Organiza- tional Stress. Thousand Oaks, CA: Sage, 2001.
5.66 Fusilier, M.R.; D.C. Ganster; and B.T. Mayes. “Effects of Social Support, Role Stress, and Locus of Control on Health.” Journal of Management 13 (1987), pp. 517–28.
5.67 Nahum-Shani, I., and P.A. Bamberger. “Explaining the Vari- able Effects of Social Support on Work-Based Stressor-Strain Rela- tions: The Role of Perceived Pattern of Support Exchange.” Organizational Behavior and Human Decision Processes 114 (2011), pp. 49–63.
5.68 Zhang, Y.; J.A. LePine; B. R. Buckman; and F. Wei. “It’s Not Fair . . . Or Is It? The Role of Justice and Leadership in Explaining Work Stressor–Job Perfor- mance Relationships.” Academy of Manage- ment Journal 57 (2014), pp. 675–97.
5.69 Jayaratne, S.; T. Tripodi; and W.A. Chess. “Perceptions of Emotional Support, Stress, and Strain by Male and Female Social Workers.” Social Work Research and Abstracts 19 (1983), pp. 19–27; Kobasa, S. “Commit- ment and Coping in Stress among Lawyers.” Journal of Personality and Social Psychology 42 (1982), pp. 707–17; and LaRocco, J.M., and A.P. Jones. “Co-Worker and Leader Support as
Moderators of Stress– Strain Relationships in Work Situations.” Jour- nal of Applied Psychology 63 (1978), pp. 629–34.
5.70 Kahn and Byo- siere, “Stress in Organizations.”
5.71 Nohe, C.; L.L. Meier; K. Sonntag; and A. Michel. “The Chicken or the Egg? A Meta- Analysis of Panel Stud- ies of the Relationship between Work-Family Conflict and Strain.” Journal of Applied Psy- chology 100 (2015), pp. 522–36.
5.72 LePine et al., “A Meta- Analytic Test.”
5.73 Cohen, S. “After Effects of Stress on Human Performance and Social Behavior: A Review of Research and Theory.” Psychological Bulletin 88 (1980), pp. 82–108; and Crawford, E.R.; J.A. LePine; and B.L. Rich. “Linking Job Demands and Resources to Employee Engagement and Burnout: A Theoretical Extension and Meta- Analytic Test.” Journal of Applied Psychology 95 (2010), pp. 834–48.
5.74 Meier, L.L., and P.E. Spector. “Reciprocal Effects of Work Stress- ors and Counterproduc- tive Work Behavior: A Five Wave Longitudinal Study.” Journal of Applied Psychology 98 (2013), pp. 529–39.
5.75 Podsakoff et al., “Dif- ferential Challenge Stressor–Hindrance Stressor Relationships.”
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5.76 Bedeian, A.G., and A. Armenakis. “A Path-Analytic Study of the Consequences of Role Conflict and Ambiguity.” Academy of Management Journal 24 (1981), pp. 417–24; and Schaubroeck, J.; J.L. Cotton; and K.R. Jennings. “Antecedents and Consequences of Role Stress: A Covariance Structure Analysis.” Journal of Organizational Behavior 10 (1989), pp. 35–58.
5.77 LePine et al., “A Meta-Analytic Test”; and Podsakoff et al., “Differential Challenge Stressor–Hindrance Stressor Relationships.”
5.78 Crawford, LePine, and Rich, “Linking Job Demands and Resources to Employee Engage- ment and Burnout.”
5.79 Ibid.
5.80 Cavanaugh, M.A.; W.R. Boswell; M.V. Roehling; and J.W. Boudreau. “An Empirical Examination of Self-Reported Work Stress among U.S. Managers.” Journal of Applied Psychology 85 (2000), pp. 65–74.
5.81 Boswell, W.R.; J.B. Olson-Buchanan; and M.A. LePine. “The Relationship between Work-Related Stress and Work Outcomes: The Role of Felt-Challenge and Psychological Strain.” Journal of Vocational Behavior 64 (2004), pp. 165–81.
5.82 LePine et al., “Chal- lenge and Hindrance Stress.”
5.83 Myers, L. “Transform- ing Presenteeism into Productivity” Workspan, July 2009, pp. 40–43.
5.84 Miller, S. “Most Employees Underesti- mate Health Impact on Productivity.” HR Maga- zine, June 2009, p. 20.
5.85 Burke, M.E. “2005 Ben- efits Survey Report.” Alexandria, VA: Society of Human Resource Management Research Department, 2005.
5.86 Perkins, A. “Medical Costs: Saving Money by Reducing Stress.” Har- vard Business Review 72 (1994), p. 12.
5.87 Sauter, S.; L. Murphy; M. Colligan; N. Swan- son; J. Hurrell Jr.; F. Scharf Jr.; R. Sinclair; P. Grubb; L. Goldenhar; T. Alterman; J. Johnston; A. Hamilton; and J. Tis- dale. “Is Your Boss Mak- ing You Sick?” (n.d.), http://abcnews.go.com/ GMA/Careers/story?id= 1251346&gma=true.
5.88 Defrank and Ivancev- ich, “Stress on the Job.”
5.89 Noyce, J. “Help Employees Manage Stress to Prevent Absenteeism, Errors.” Minneapolis–St. Paul Business Journal, August 22, 2003, http:// twincities.bizjournals .com/twincities/?stories/ 2003/08/25/smallb2 .html; and Burke, “2005 Benefits Survey Report.”
5.90 Hoffman, J. “Napping Gets a Nod at the Workplace.” Bloomberg Businessweek, August
26, 2010, http://www .businessweek.com/ magazine/content/10_36/ b4193084949626 .htm; and Yarow, J. “Googlers Take Naps in Bizarre Contraption.” Business Insider SAI, June 17, 2010, http:// www.businessinsider .com/google-sleep -pods-2010-6.
5.91 Defrank and Ivancev- ich, “Stress on the Job”; and Cooper, C.L. “The Costs of Stress at Work.” The Safety & Health Practitioner 19 (2001), pp. 24–26.
5.92 Rafter, M. V. “The Yawning of a New Era.” Workforce Management, December 2010, pp. 3–4.
5.93 Hengchen, D.; K.L. Milkman; D. A. Hof- mann; and B. R. Staats. “The Impact of Time at Work and Time off from Work on Rule Compliance: The Case of Hand Hygiene in Health Care.” Journal of Applied Psychology 100 (2015), pp. 846–62.
5.94 Burke, “2005 Benefits Survey Report.”
5.95 Miller and Miller, “Get a Life!”
5.96 Ibid.; and Cunningham, C.R., and S.S. Murray. “Two Executives, One Career.” Harvard Busi- ness Review 83 (February 2005), pp. 125–31.
5.97 Sahadi, J. “The World’s Best Perk.” CNNMoney .com, June 13, 2006, http://money.cnn .com/2006/06/13/ commentary/everyday/ sahadi/index.htm.
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5.98 Ibid.
5.99 Ibid.
5.100 Milligan. S. “Greet- ings from Unlimited Vacationland.” HR Magazine, March (2015), pp. 28–36.
5.101 LePine et al., “A Meta- Analytic Test”; and Podsakoff et al., “Differential Challenge Stressor– Hindrance Stress Relationships.”
5.102 Hakanen, J.J.; M.C.W. Peeters; and R. Perhoniemi. “Enrich- ment Processes and Gain Spirals at Work and at Home: A 3-Year Cross-Lagged Panel Study.” Journal of Occupational and Organizational Psychology 84 (2011), pp. 8–30; and Son- nentag, S., and M. Frese. “Stress in Organizations.” In Comprehensive Hand- book of Psychology: Vol. 12, Industrial and Organizational Psychol- ogy, ed. W.C. Borman; D.R. Ilgen, and R.J. Klimoski. New York: Wiley, 2003, pp. 453–91.
5.103 Vuori, J.; S. Toppinen- Tanner; and P. Mutanen. “Impacts of Resource-Building Group Intervention on Career Management and Mental Health in Work Organizations: Randomized Con- trolled Field Trial.” Journal of Applied Psychology 97 (2012), pp. 273–86.
5.104 Allen, T.D.; R.C. Johnson; K.M. Kiburz; and K.M. Shockley. “Work- Family Conflict and Flexible Work Arrangements: Decon- structing Flexibility. Personnel Psychol- ogy 66 (2013), pp. 345–76.
5.105 Hunter, E.M., and C. Wu. “Give Me a Better Break: Choos- ing Workday Break Activities to Maximize Resource Recovery.” Journal of Applied Psychology 101 (2016), pp. 302–11.
5.106 Burke, “2005 Benefits Survey Report.”
5.107 Spieler, I.; S. Scheibe; C. Stamov-Roßnagel; and A. Kappas. “Help or Hindrance? Day- Level Relationships Between Flextime Use, Work–Nonwork Boundaries, and Affective Well-Being.” Journal of Applied Psychology 102 (2017), pp. 67–87.
5.108 Defrank and Ivancev- ich, “Stress on the Job”; and Austin, N.K. “Work–Life Paradox.” Incentive 178 (2004), p. 18.
5.109 Butts, M.B.; W.J. Casper; and T.S. Yang. “How Important Are Work-Family Support Policies? A Meta- Analytic Investigation of Their Effects on Employee Outcomes.” Journal of Applied Psychology 98 (2013), pp. 1–25.
5.110 Goudreau, J. “Back to the Stone Age? New Yahoo CEO Marissa Mayer Bans Working from Home.” Forbes, http://www.forbes.com/ sites/jennagoudreau/ 2013/02/25/ back-to-the-stone- age-new-yahoo- ceo-marissa-mayer- bans-working-from- home/ (accessed February 25, 2013).
5.111 Leslie, L.M.; C. Flaherty Manchester; T.Y. Park; and S.A. Mehng. “Flexible Work Practices: A Source of Career Premiums or Penalties?” Academy of Management Journal 55 (2012), pp. 1407–28.
5.112 Mandeville, A.; J. Halbesleben; and M. Whitman. “Misalignment and Misperception in Preferences to Utilize Family-Friendly Benefits: Implications for Benefit Utilization and Work–Family Conflict.” Personnel Psychology 69 (2016), pp. 859–929.
5.113 Murphy, L.R. “Stress Management in Work Settings: A Critical Review of Health Effects.” American Journal of Health Promotion 11 (1996), pp. 112–35.
5.114 Neufeld, Work-Related Stress.
5.115 Haran, “ Do You Know?”
5.116 Ibid.
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5.117 Daniels, “The Last Taboo.”
5.118 Frauenheim and Mar- quez, “Reducing the Fear Factor.”
5.119 Sonnentag and Frese, “Stress in Organizations.”
5.120 Neufeld, Work-Related Stress.
5.121 Atkinson. W. “Turning Stress into Strength.” HR Magazine, January 2011, pp. 49–52.
5.122 Ibid.; Burke, “2005 Ben- efits Survey Report.”
5.123 Kvamme, N. “Huma- na’s Freewheelin’ Program Proves to Be Good for Business.” Workspan, August 2008, pp. 75–78.
5.124 Doheny, K. “Going the Extra Mile.” Work- force Management, January 19, 2009, pp. 27–28.
5.125 Toker, S., and M. Biron. “Job Burnout
and Depression: Unraveling Their Tem- poral Relationship and Considering the Role of Physical Activ- ity.” Journal of Applied Psychology 97 (2012), pp. 699–770.
5.126 Sohre, K. “What Are These Companies Doing about Health Care Man- agement That You Aren’t?” Workspan, March 2010, pp. 22–26.
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6
LEARNING GOALS
6.1 What is motivation? 6.2 What three beliefs help determine work effort, according to expectancy theory? 6.3 What two qualities make goals strong predictors of task performance, according to goal setting
theory?
6.4 What does it mean to be equitably treated according to equity theory, and how do employees respond to inequity?
6.5 What is psychological empowerment, and what four beliefs determine empowerment levels? 6.6 How does motivation affect job performance and organizational commitment? 6.7 What steps can organizations take to increase employee motivation?
After reading this chapter, you should be able to answer the following questions:
Motivation
INDIVIDUAL OUTCOMES
INDIVIDUAL MECHANISMS
INDIVIDUAL CHARACTERISTICS
ORGANIZATIONAL MECHANISMS
Organizational Culture
Organizational Structure
Teams: Processes &
Communication
Motivation
Trust, Justice, & Ethics
Teams: Characteristics &
Diversity Learning & Decision Making
Ability
Personality & Cultural Values
Stress
Leadership: Power &
Negotiation
Job Satisfaction
Leadership: Styles &
Behaviors
Organizational Commitment
Job Performance
GROUP MECHANISMS
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W hat image pops into your head when you picture a Google employee? Maybe someone stopping for a snack and drink from a food kiosk between
rounds of Foosball? Or maybe someone huddled over a computer, headphones on, late in the evening, writing code? Judging from the sheer breadth of Google’s products, ser- vices, and initiatives, it seems clear that the second image is more prevalent. So, what is it that motivates “Googlers” to put forth so much effort on the job? Certainly the work they do is an important factor. Employees are given the freedom to spend part of their week on projects that interest them. Moreover, the company’s mission—to organize the world’s information and make it accessible to all—provides a sense of purpose for the rank-and-file.
That said, Google’s People Operations group does a number of things to keep employees motivated. Employees are given specific, measurable, and ambitious goals each quarter—termed “OKR’s” (for Objectives and Key Results). Those OKR’s are shown on the company’s internal website, right next to an employee’s phone and office number. Successfully meeting OKR’s then feeds into Google’s performance evaluation process, which occurs twice a year. Employees are rated by their managers on a five-point scale
where 1 = needs improvement, 2 = consistently meets expectations, 3 = exceeds expectations, 4 = strongly exceeds expectations, and 5 = superb. To ensure that higher ratings really do go to higher performers, managers engage in a process called “calibration.” In groups of five to ten, managers project their employees on a wall and have a group discussion to ensure that no “grade inflation” (or “grade deflation”) occurs. The ratings then feed into two separate conversations: one about skill development and one about changes to compensation.
Motivational strategies go beyond evaluation and com- pensation, however. Google’s awards program stresses experiential rewards, like sending teams to Hawaii, provid- ing trips to health resorts, or splurging for lavish dinners. Studies within the company have shown that the memory of such rewards lingers longer than cash, making them more satisfying. And employees can even give each other rewards themselves. The gThanks (“gee-thanks”) software system allows employees to send public thank you’s to reward good work. The system even allows employees to give peers a $175 cash award—with no managerial approval needed.
©Jacques Brinon/Getty Images
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M OT I VAT I O N
Few OB topics matter more to employees and managers than motivation. How many times have you wondered to yourself, “Why can’t I get myself going today?” Or how many times have you looked at a friend or coworker and wondered, “Why are they working so slowly right now?” Both of these questions are asking about “motivation,” which is a derivation of the Latin word for movement, movere.1 Those Latin roots nicely capture the meaning of motivation, as motivated employees simply move faster and longer than unmotivated employees. More formally, motivation is defined as a set of energetic forces that originates both within and outside an employee, initiates work-related effort, and determines its direction, intensity, and persistence.2 Motivation is a criti- cal consideration because effective job performance often requires high levels of both ability and motivation (see Chapter 10 on ability for more discussion of such issues).3
The first part of our motivation definition illustrates that motivation is not one thing but rather a set of distinct forces. Some of those forces are internal to the employee, such as a sense of pur- pose or confidence, whereas others are external to the employee, such as the goals or incentives an employee is given. The next part of that definition illustrates that motivation determines a number of facets of an employee’s work effort. These facets are summarized in Figure 6-1, which depicts a scenario in which your boss has given you an assignment to work on. Motivation deter- mines what employees do at a given moment—the direction in which their effort is channeled. Every moment of the workday offers choices between task and citizenship sorts of actions or with- drawal and counterproductive sorts of actions. When it’s 3:00 p.m. on a Thursday, do you keep working on the assignment your boss gave you, or do you check social networks or surf the web for a while? Once the direction of effort has been decided, motivation goes on to determine how hard an employee works—the intensity of effort—and for how long—the persistence of effort. We all have friends or coworkers who work extremely hard for . . . say . . . 5 minutes. We also have friends or coworkers who work extremely long hours but always seem to be functioning at half-speed. Nei- ther of those groups of people would be described as extremely motivated.
6.1 What is motivation?
Photos: Left: ©DutchScenery/Shutterstock; Right: ©Tetra Images/Getty Images
FIGURE 6-1 Motivation and Effort
What are you going to do right now?
How hard are you going to work on it?
As hard as you can, or only at half-speed?
How long are you going to work on it?
For five hours or five minutes?
DIRECTION of E�ort INTENSITY of E�ort
MOTIVATION DETERMINES THE . . .
PERSISTENCE of E�ort
Check social networks
Surf the web for a while
The assignment your boss gave you yesterday
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OB AT THE BOOKSTORE DEEP WORK by Cal Newport (New York: Grand Central Publishing, 2016).
Deep work is so important that we might consider it, to use the phrasing of business writer Eric Barker, “the superpower of the 21st century.”
With those words, Newport highlights the importance of “deep work”—activities performed in a distraction-free state that truly push your cognitive abilities. Deep work is practiced by the most successful writers, coders, inventors, and decision makers. In moti- vation parlance, it’s indicative of high intensity of effort—not merely direction or persistence of effort. It’s not just choosing to do some work, and keeping at it for a while. It’s closing off the outside world to really “dig deep” into the activity.
Newport argues that deep work has taken on an increased impor- tance because the contemporary economy demands the ability to (1) quickly master difficult tasks and (2) produce at an elite level. Deep work is vital to both. Unfortunately, deep work is also becom- ing more rare. The constant connectivity created by technology and the unmeasurable nature of some knowledge work has increased “shallow work”—noncognitively demanding, logistical tasks often performed while distracted. Responding to e-mails, doing Internet
searches, and filling out reports are examples of shallow work. A study by McKinsey suggested that 60 percent of a knowledge worker’s week is spent on such tasks. Indeed, such examples of “busyness” have become a proxy for true productivity.
The problem with shallow work is not just that it has little long-term payoff. It’s also that it rewires our brains in such a way that we become less capable of doing deep work. Deep work develops a substance called myelin around relevant neurons in the brain, whereas shallow work degrades that substance. As a result, Newport cautions, “If you’re not comfortable going deep for extended periods of time, it’ll be difficult to get your performance to the peak levels of quality and quantity increasingly necessary to thrive professionally. Unless your talent and skills absolutely dwarf those of your competition, the deep workers among them will outproduce you.” How can we get better at deep work? Fortunately, Newport offers a number of specific suggestions.
©Roberts Publishing Services
As the opening example illustrates, organizations are always on the lookout for new and better ways to motivate their employees. These days, however, those discussions are more likely to focus on a concept called engagement. You can think of engagement as a contemporary synonym, more or less, for high levels of intensity and persistence in work effort. Employees who are “engaged” completely invest themselves and their energies into their jobs.4 Outwardly, engaged employees devote a lot of energy to their jobs, striving as hard as they can to take initiative and get the job done.5 Inwardly, engaged employees focus a great deal of attention and concentration on their work, sometimes becoming so absorbed, involved, and interested in their tasks that they lose track of time (see Chapter 4 on job satisfaction for more discussion of such issues).6 Many companies attempt to measure engagement on their annual employee surveys, often by assessing factors that are believed to foster intense and persistent work effort.7 One recent survey by Gallup suggests that only 30 percent of employees are engaged—a percentage that has held fairly steady for a decade.8 Given those numbers, it’s not surprising that a recent survey of human resources executives indicated an increased emphasis on improving engagement levels.9 That emphasis is critical, as research suggests that low levels of engagement can be contagious, crossing over from one employee to another.10 For more on the importance of such engagement, see our OB at the Bookstore feature.
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W H Y A R E S O M E E M P LOY E E S M O R E M OT I VAT E D T H A N OT H E R S ?
There are a number of theories and concepts that attempt to explain why some employees are more motivated (or engaged) than others. The sections that follow review those theories and con- cepts in some detail. Most of them are relevant to each of the effort facets described in Figure 6-1. However, some of them are uniquely suited to explaining the direction of effort, whereas others do a better job of explaining the intensity and persistence of effort.
E X P E C TA N CY T H E O RY What makes you decide to direct your effort to work assignments rather than taking a break or wasting time? Or what makes you decide to be a “good citizen” by helping out a colleague or attending some optional company function? Expectancy theory describes the cognitive pro- cess that employees go through to make choices among different voluntary responses.11 Drawing on earlier models from psychology, expectancy theory argues that employee behavior is directed toward pleasure and away from pain or, more generally, toward certain outcomes and away from others.12 How do employees make the choices that take them in the “right direction”? The theory suggests that our choices depend on three specific beliefs that are based in our past learning and experience: expectancy, instrumentality, and valence. These three beliefs are summarized in Figure 6-2, and we review each of them in turn.
Expectancy represents the belief that exerting a high level of effort will result in the success- ful performance of some task. More technically, expectancy is a subjective probability, ranging
6.2 What three beliefs help determine work effort, according to expectancy theory?
FIGURE 6-2 Expectancy Theory
? ? E�ort Performance
Outcomes
+ or - ?
Instrumentality: If I perform well, will I receive outcomes?
Valence: Will the outcomes be
satisfying?
Expectancy: If I exert a lot of e�ort, will I
perform well?
+ or - ?
+ or - ?
+ or - ?
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from 0 (no chance!) to 1 (a mortal lock!) that a specific amount of effort will result in a spe- cific level of performance (abbreviated E → P). Think of a task at which you’re not particularly good, such as writing romantic poetry. You may not be very motivated to write romantic poetry because you don’t believe that your effort, no matter how hard you try, will result in a poem that “moves” your significant other. As another example, you’ll be more motivated to work on the assignment described in Figure 6-1 if you’re confident that trying hard will allow you to complete it successfully.
What factors shape our expectancy for a particular task? One of the most critical factors is self-efficacy, defined as the belief that a person has the capabilities needed to execute the behav- iors required for task success.13 Think of self-efficacy as a kind of self-confidence or a task-specific version of self-esteem.14 Employees who feel more “efficacious” (i.e., self-confident) for a particu- lar task will tend to perceive higher levels of expectancy—and therefore be more likely to choose to exert high levels of effort. Why do some employees have higher self-efficacy for a given task than other employees? Figure 6-3 can help explain such differences.
When employees consider efficacy levels for a given task, they first consider their past accomplishments—the degree to which they have succeeded or failed in similar sorts of tasks in the past.15 They also consider vicarious experiences by taking into account their observa- tions and discussions with others who have performed such tasks.16 Self-efficacy is also dictated by verbal persuasion because friends, coworkers, and leaders can persuade employees that they can “get the job done.” Finally, efficacy is dictated by emotional cues, in that feelings of fear or anxiety can create doubts about task accomplishment, whereas pride and enthusiasm can bol- ster confidence levels.17 Taken together, these efficacy sources shape analyses of how difficult the task requirements are and how adequate an employee’s personal and situational resources will prove to be.18 They also explain the content of most pregame speeches offered by coaches before the big game; such speeches commonly include references to past victories (past accom- plishments), pep talks about how good the team can be (verbal persuasion), and cheers to rally the troops (emotional cues).
FIGURE 6-3 Sources of Self-Efficacy
Sources: Adapted from A. Bandura, “Self-Efficacy: Toward a Unifying Theory of Behavioral Change,” Psychological Review 84 (1977), pp. 191–215; and M.E. Gist and T.R. Mitchell, “Self-Efficacy: A Theoretical Analysis of Its Determinants and Malleability,” Academy of Management Review 17 (1992), pp. 183–211.
• Past Accomplishments
• Vicarious Experience
• Verbal Persuasion
• Emotional Cues
Analysis of Task
Requirements
Assessment of Personal and
Situational Resources
SELF- EFFICACY
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INSTRUMENTALITY Instrumentality represents the belief that successful performance will result in some outcome(s).19 More technically, instrumentality is a set of subjective probabilities, each ranging from 0 (no chance!) to 1 (a mortal lock!) that successful performance will bring a set of outcomes (abbreviated P O). The term “instrumentality” makes sense when you consider the meaning of the adjective “instrumental.” We say something is “instrumental” when it helps attain something else—for example, reading this chapter is instrumental for getting a good grade in an OB class (at least, we hope so!).20 Unfortunately, evidence indicates that many employees don’t perceive high levels of instrumentality in their workplace. One survey of more than 10,000 employees revealed that only 35 percent viewed performance as the key driver of their pay.21 By comparison, 60 percent viewed seniority as the key driver.
Although organizations often struggle to foster instrumentality in the best of times, linking performance to outcomes is even more difficult during an economic downturn. One human resources consulting firm estimated that 31 percent of organizations froze pay in 2009, with that estimate falling to 13 percent in 2010 and 2 percent in 2011.22 3M, the St. Paul, Minnesota–based maker of Post-it notes and Scotch tape, is one example of a firm that is only now unfreezing its pay. Executives at 3M indicated that pay increases would return after being frozen since 2009. Summarizes one human resources consultant, “There really is a mindset that you can only do that for so long.”23 As the economy improves, good performers will begin to expect rewards and may look elsewhere if their company does not provide them.
VALENCE Valence reflects the anticipated value of the outcomes associated with performance (abbreviated V).24 Valences can be positive (“I would prefer having outcome X to not having it”), negative (“I would prefer not having outcome X to having it”), or zero (“I’m bored . . . are we still talking about outcome X?”). Salary increases, bonuses, and more informal rewards are typical examples of “positively valenced” outcomes, whereas disciplinary actions, demotions, and termi- nations are typical examples of “negatively valenced” outcomes.25 In this way, employees are more motivated when successful performance helps them attain attractive outcomes, such as bonuses, while helping them avoid unattractive outcomes, such as disciplinary actions.
What exactly makes some outcomes more “positively valenced” than others? In general, out- comes are deemed more attractive when they help satisfy needs. Needs can be defined as cognitive groupings or clusters of outcomes that are viewed as having critical psychological or physiologi- cal consequences.26 Although scholars once suggested that certain needs are “universal” across
Pregame speeches, like this dramatization of Herb
Brooks’s in Miracle, are often geared around
bolstering a team’s self- efficacy. Said Brooks
before the USA took on the Soviet Union in the 1980
Olympics, “Tonight, we skate with ’em. Tonight, we
stay with ’em. . . . Tonight, we are the greatest hockey
team in the world!”
©Buena Vista Pictures/Photofest
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people,27 it’s likely that different people have different “need hierarchies” that they use to evaluate potential outcomes. Table 6-1 describes many of the needs that are commonly studied in OB.28 The terms and labels assigned to those needs often vary, so the table includes our labels as well as alternative labels that might sometimes be encountered.
Table 6-2 lists some of the most commonly considered outcomes in studies of motivation. Out- comes that are deemed particularly attractive are likely to satisfy a number of different needs. For example, praise can signal that interpersonal bonds are strong (satisfying relatedness needs) while also signaling competence (satisfying esteem needs). Note also that some of the outcomes in Table 6-2, such as bonuses, promotions, and praise, result from other people acknowledging suc- cessful performance. These outcomes foster extrinsic motivation—motivation that is controlled by some contingency that depends on task performance.29 Other outcomes in the table, such as enjoyment, interestingness, and personal expression, are self-generated, originating in the mere act of performing the task. These outcomes foster intrinsic motivation—motivation that is felt when task performance serves as its own reward.30 Taken together, extrinsic and intrinsic motivation represent an employee’s “total motivation” level.
You might wonder which of the outcomes in the table are most attractive to employees. That’s a difficult question to answer, given that different employees emphasize different needs. However, two things are clear. First, the attractiveness of many rewards varies across cultures. One expert on cross-cultural recognition programs notes, “Different cultures have different motivators. In fact, giving a gift card could be extremely insulting because it could be saying that you are bribing them to do what they already do.”31 Good performance on a project in an American company might earn a trip to Las Vegas. However, trips to alcohol- and gambling-intensive areas are taboo in parts of Asia or the Middle East.32 A better award in India would be tickets to a newly released movie or a moped for navigating in congested areas.33
Second, research suggests that employees underestimate how powerful a motivator pay is to them.34 When employees rank the importance of extrinsic and intrinsic outcomes, they often put pay in fifth or sixth place. However, research studies show that financial incentives often have a stronger impact on motivation than other sorts of outcomes.35 One reason is that money is rel- evant to many of the needs in Table 6-1. For example, money can help satisfy existence needs by
TABLE 6-1 Commonly Studied Needs in OB
NEED LABEL ALTERNATIVE LABELS DESCRIPTION
Existence Physiological, Safety The need for the food, shelter, safety, and pro- tection required for human existence.
Relatedness Love, Belongingness The need to create and maintain lasting, posi- tive, interpersonal relationships.
Control Autonomy, Responsibility The need to be able to predict and control one’s future.
Esteem Self-Regard, Growth The need to hold a high evaluation of oneself and to feel effective and respected by others.
Meaning Self-Actualization The need to perform tasks that one cares about and that appeal to one’s ideals and sense of purpose.
Sources: Adapted from E.L. Deci and R.M Ryan, “The ‘What’ and ‘Why’ of Goal Pursuits: Human Needs and the Self- Determination of Behavior,” Psychological Inquiry 11 (2000), pp. 227–68; R. Cropanzano, Z.S. Byrne, D.R. Bobocel, and D.R. Rupp, “Moral Virtues, Fairness Heuristics, Social Entities, and Other Denizens of Organizational Justice,” Journal of Vocational Behavior 58 (2001), pp. 164–209; A.H. Maslow, “A Theory of Human Motivation,” Psychological Review 50 (1943), pp. 370–96; and C.P. Alderfer, “An Empirical Test of a New Theory of Human Needs,” Organizational Behavior and Human Performance 4 (1969), pp. 142–75.
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helping employees buy food, afford a house, and save for retirement. However, money also conveys a sense of esteem because it signals that employees are competent and well regarded.36 In fact, research suggests that people differ in how they view the meaning of money—the degree to which they view money as having symbolic, not just economic, value.37 The symbolic value of money can be summarized in at least three dimensions: achievement (i.e., money symbolizes success), respect (i.e., money brings respect in one’s community), and freedom (i.e., money provides opportunity).38
Who’s more likely to view money from these more symbolic perspectives? Some research suggests that men are more likely to view money as representing achievement, respect, and freedom than are women.39 Research also suggests that employees with higher salaries are more likely to view money in achievement-related terms.40 Younger employees are less likely to view money in a positive light, relative to older employees.41 Differences in education do not appear to affect the meaning of money, however.42 How do you view the meaning of money? See our OB Assessments feature to find out.
MOTIVATIONAL FORCE According to expectancy theory, the direction of effort is dictated by three beliefs: expectancy (E → P), instrumentality (P → O), and valence (V). More specifically, the theory suggests that the total “motivational force” to perform a given action can be described using the following formula:43
Motivational Force = E P × Ʃ[(P O) × V ]
The Σ symbol in the equation signifies that instrumentalities and valences are judged with various outcomes in mind, and motivation increases as successful performance is linked to more
TABLE 6-2 Extrinsic and Intrinsic Outcomes
EXTRINSIC OUTCOMES INTRINSIC OUTCOMES
Pay Enjoyment
Bonuses Interestingness
Promotions Accomplishment
Benefits and perks Knowledge gain
Spot awards Skill development
Praise Personal expression
Job security (Lack of) Boredom
Support (Lack of) Anxiety
Free time (Lack of) Frustration
(Lack of) Disciplinary actions
(Lack of) Demotions
(Lack of) Terminations
Sources: Adapted from E.E. Lawler III and J.L. Suttle, “Expectancy Theory and Job Behavior,” Organizational Behavior and Human Performance 9 (1973), pp. 482–503; J. Galbraith and L.L. Cummings, “An Empirical Investigation of the Motivational Determinants of Task Performance: Interactive Effects between Instrumentality–Valence and Motivation– Ability,” Organizational Behavior and Human Performance 2 (1967), pp. 237–57; E. McAuley, S. Wraith, and T.E. Duncan, “Self-Efficacy, Perceptions of Success, and Intrinsic Motivation for Exercise,” Journal of Applied Social Psychology 21 (1991), pp. 139–55; and A.S. Waterman, S.J. Schwartz, E. Goldbacher, H. Green, C. Miller, and S. Philip, “Predicting the Subjective Experience of Intrinsic Motivation: The Roles of Self-Determination, the Balance of Challenges and Skills, and Self-Realization Values,” Personality and Social Psychology Bulletin 29 (2003), pp. 1447–58.
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OB ASSESSMENTS
SCORING AND INTERPRETATION
• Money as Achievement: Sum up items 1–4. _________ • Money as Respect: Sum up items 5–8. _________ • Money as Freedom: Sum up items 9–12. _________ • Money as Achievement: High = 13 or above. Low = 12 or below. • Money as Respect: High = 15 or above. Low = 14 or below. • Money as Freedom: High = 20 or above. Low = 19 or below.
If you scored high on all three dimensions, then you view money as having multiple, noneconomic meanings. This result means that money is likely to be a powerful motivator for you.
Source: Original items. See T.L. Tang, “The Meaning of Money Revisited,” Journal of Organizational Behavior 13 (1992), pp. 197–202, for an alternative measure of these concepts.
THE MEANING OF MONEY How do you view money—what meaning do you attach to it? This assessment will tell you where you stand on the three facets of the meaning of money—money as achievement, money as respect, and money as freedom. Answer each question using the response scale provided. Then follow the instructions to score yourself. (Instructors: Assessments on intrinsic motivation, self-efficacy, engagement, and equity sensitivity can be found in the PowerPoints in the Connect Library’s Instructor Resources and in the Connect assignments for this chapter.)
1 STRONGLY DISAGREE
2 DISAGREE
3 SLIGHTLY DISAGREE
4 NEUTRAL
5 SLIGHTLY
AGREE
6 AGREE
7 STRONGLY
AGREE
1. Having money means that I’ve achieved something. _______
2. Having money shows that I’ve succeeded. _______
3. Having money is a symbol of accomplishment. _______
4. Having money signifies that I’ve performed well. _______
5. Having money brings respect from others. _______
6. Having money can make others admire you. _______
7. Having money is worthy of others’ esteem. _______
8. Having money can make you more well-regarded. _______
9. Having money brings more freedom. _______
10. Having money can create opportunities. _______
11. Having money provides more autonomy. _______
12. Having money brings independence. _______
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and more attractive outcomes. Note the significance of the multiplication signs in the formula: Motivational force equals zero if any one of the three beliefs is zero. In other words, it doesn’t matter how confident you are if performance doesn’t result in any outcomes. Similarly, it doesn’t matter how well performance is evaluated and rewarded if you don’t believe you can perform well.
G OA L S E T T I N G T H E O RY So, returning to the choice shown in Figure 6-1, let’s say that you feel confident you can perform well on the assignment your boss gave you and that you also believe successful performance will bring valued outcomes. Now that you’ve chosen to direct your effort to that assignment, two criti- cal questions remain: How hard will you work, and for how long? To shed some more light on these questions, you stop by your boss’s office and ask her, “So, when exactly do you need this done?” After thinking about it for a while, she concludes, “Just do your best.” After returning to your desk, you realize that you’re still not sure how much to focus on the assignment, or how long you should work on it before turning to something else.
Goal setting theory views goals as the primary drivers of the intensity and persistence of effort.44 Goals are defined as the objective or aim of an action and typically refer to attaining a specific standard of proficiency, often within a specified time limit.45 More specifically, the theory argues that assigning employees specific and difficult goals will result in higher levels of performance than assigning no goals, easy goals, or “do-your-best” goals.46 Why are specific and difficult goals more effective than do-your-best ones? After all, doesn’t “your best” imply the highest possible levels of effort? The reason is that few people know what their “best” is (and even fewer managers can tell whether employees are truly doing their “best”). Assigning specific and difficult goals gives people a number to shoot for—a “measuring stick” that can be used to tell them how hard they need to work and for how long. So if your boss had said, “Have the assignment on my desk by 10:30 a.m. on Tuesday, with no more than two mistakes,” you would have known exactly how hard to work and for how long.
Of course, a key question then becomes, “What’s a difficult goal?” Figure 6-4 illustrates the predicted relationship between goal difficulty and task performance. When goals are easy, there’s no reason to work your hardest or your longest, so task effort is lower. As goals move from moder- ate to difficult, the intensity and persistence of effort become maximized. At some point, however, the limits of a person’s ability get reached, and self-efficacy begins to diminish. Also at that point, goals move from difficult to impossible, and employees feel somewhat helpless when attempting to achieve them. In turn, effort and performance inevitably decline. So a difficult goal is one that stretches employees to perform at their maximum level while still staying within the boundaries of their ability.
The effects of specific and difficult goals on task performance have been tested in several hundred studies using many kinds of settings and tasks. A sampling of those settings and tasks is shown in Table 6-3.47 Overall, around 90 percent of the goal setting studies support the beneficial effects of specific and difficult goals on task performance.48 Although some of the settings and tasks shown in the table are unlikely to be major parts of your career (archery, handball, LEGO construction), others should be very relevant to the readers (and authors!) of this book (managing and supervision, studying, faculty research). Then again, who wouldn’t want a career in LEGO construction?
Why exactly do specific and difficult goals have such positive effects? Figure 6-5 presents goal setting theory in more detail to understand that question better.49 First, the assignment of a spe- cific and difficult goal shapes people’s own self-set goals—the internalized goals that people use to monitor their own task progress.50 In the absence of an assigned goal, employees may not even consider what their own goals are, or they may self-set relatively easy goals that they’re certain to meet. As a self-set goal becomes more difficult, the intensity of effort increases, and the persis- tence of effort gets extended. However, goals have another effect; they trigger the creation of task strategies, defined as learning plans and problem-solving approaches used to achieve successful performance.51 In the absence of a goal, it’s easy to rely on trial and error to figure out how best to do a task. Under the pressure of a measuring stick, however, it becomes more effective to plan out the next move. Put differently, goals can motivate employees to work both harder and smarter.
6.3 What two qualities make goals strong predictors of task performance, accord- ing to goal setting theory?
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Source: Adapted from E.A. Locke and G.P. Latham, A Theory of Goal Setting and Task Performance (Englewood Cliffs, NJ: Prentice Hall, 1990).
FIGURE 6-4 Goal Difficulty and Task Performance
Goal Di�culty
T a
sk P
e rf
o rm
a n
ce
Easy Moderate Di�cult Impossible
Intensity and Persistence Maximized
TABLE 6-3 Settings and Tasks Used in Goal Setting Research
SETTINGS AND TASKS
Air traffic control Management training
Archery Marine recruit performance
Arithmetic Maze learning
Beverage consumption Mining
Chess Proofreading
Computer games Production and manufacturing
Course work Puzzles
Energy conservation Safety behaviors
Exercise Sales
Faculty research Scientific and R&D work
Juggling Sit-ups
LEGO construction Studying
Logging Weight lifting
Managing and supervision Weight loss
Source: Adapted from E.A. Locke and G.P. Latham, A Theory of Goal Setting and Task Performance (Englewood Cliffs, NJ: Prentice Hall, 1990).
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Figure 6-5 also includes three variables that specify when assigned goals will have stronger or weaker effects on task performance. In the jargon of theory diagrams, these variables are called “moderators.” Rather than directly affecting other variables in the diagram, moderators affect the strength of the relationships between variables. One moderator is feedback, which consists of updates on employee progress toward goal attainment.52 Imagine being challenged to beat a friend’s score on a video game but having your own score hidden as you played. How would you know how hard to try? Another moderator is task complexity, which reflects how complicated the information and actions involved in a task are, as well as how much the task changes.53 In general, the effects of specific and difficult goals are almost twice as strong on simple tasks as on complex tasks, though the effects of goals remain beneficial even in complex cases.54 Goal setting at Wyeth, the Madison, New Jersey–based pharmaceuticals company, illustrates the value of goals for complex tasks (after all, what’s more complicated than chemistry?).55 When Robert Ruffolo
was appointed the new chief of R&D several years ago, he was concerned about the low number of new drug compounds being gener- ated by Wyeth’s labs. His solution? He gave scientists a goal of discovering 12 new drug compounds every year, up from the 4 com- pounds they were previously averaging, with bonuses contingent on reaching the goals. Wyeth’s scientists have reached the goal every year since, and the goal was eventually upped to 15 compounds per year.
The final moderator shown in Figure 6-5 is goal commitment, defined as the degree to which a person accepts a goal and is determined to try to reach it.56 When goal
FIGURE 6-5 Goal Setting Theory
Sources: Adapted from E.A. Locke and G.P. Latham, A Theory of Goal Setting and Task Performance (Englewood Cliffs, NJ: Prentice Hall, 1990); E.A. Locke and G.P. Latham, “Building a Practically Useful Theory of Goal Setting and Task Motivation: A 35-Year Odyssey,” American Psychologist 57 (2002), pp. 705–17; and G.P. Latham, “Motivate Employee Per- formance through Goal-Setting,” in Blackwell Handbook of Principles of Organizational Behavior, ed. E.A. Locke (Malden, MA: Blackwell, 2000), pp. 107–19.
Specific and Di�cult
Assigned Goal
Task Performance
Self-Set Goal
Goal Commitment
Task Complexity
Feedback
Intensity of E�ort
Persistence of E�ort
Task Strategies
As the chief of research and development at Wyeth,
Inc., a pharmaceutical company, Robert Ruffolo
offered company scientists a bonus for discovering
12 new drug compounds every year. They’ve done it every year and are now
reaching for a new goal of 15.
©Kimimasa Mayama/Bloomberg via Getty Images
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commitment is high, assigning specific and difficult goals will have significant benefits for task performance. However, when goal commitment is low, those effects become much weaker.57 The importance of goal commitment raises the question of how best to foster commitment when assign- ing goals to employees. Table 6-4 summarizes some of the most powerful strategies for fostering goal commitment, which range from rewards to supervisory support to employee participation.58
Microsoft recently revised its use of goal setting principles in an effort to boost goal commit- ment and task performance.59 The company had become concerned that employees viewed their goals as objectives they hoped to meet rather than objectives they were committed to meeting. More- over, approximately 25–40 percent of employees were working under goals that were either not specific enough or not measurable enough to offer feedback. To combat these trends, managers are now trained to identify five to seven S.M.A.R.T. goals for each employee and to link rewards directly to goal achievement. The S.M.A.R.T. acronym summarizes many beneficial goal character- istics, standing for Specific, Measurable, Achievable, Results-Based, and Time-Sensitive. (Although that acronym is a useful reminder, note that it omits the all-important “Difficult” characteristic.) Managers and employees at Microsoft participate jointly in the goal setting process, and managers offer support by suggesting task strategies that employees can use to achieve the goals. In this way, managers and employees come to understand the “how” of achievement, not just the “what.”60 For insights into how goal setting operates across cultures, see our OB Internationally feature.
E Q U I T Y T H E O RY Returning to our running example in Figure 6-1, imagine that at this point, you’ve decided to work on the assignment your boss gave you, and you’ve been told that it’s due by Tuesday at 10:30 a.m. and can’t have more than two mistakes in it. That’s a specific and difficult goal, so your browser hasn’t been launched in a while, and you haven’t even thought about checking Facebook. In short, you’ve been working very hard for a few hours, until the guy from across the hall pops his head in. You tell him what you’re working on, and he nods sympathetically, saying, “Yeah, the boss gave me a similar assignment that sounds just as tough. I think she realized how tough it was though, because she said I could use the company’s playoff tickets if I finish it on time.” Playoff tickets? Playoff tickets?? Looks like it’s time to check Facebook after all. . . .
TABLE 6-4 Strategies for Fostering Goal Commitment
STRATEGY DESCRIPTION
Rewards Tie goal achievement to the receipt of monetary or nonmonetary rewards.
Publicity Publicize the goal to significant others and coworkers to create some social pressure to attain it.
Support Provide supportive supervision to aid employees if they struggle to attain the goal.
Participation Collaborate on setting the specific proficiency level and due date for a goal so that the employee feels a sense of ownership over the goal.
Resources Provide the resources needed to attain the goal and remove any con- straints that could hold back task efforts.
Sources: Adapted from J.R. Hollenbeck and H.J. Klein, “Goal Commitment and the Goal-Setting Process: Problems, Pros- pects, and Proposals for Future Research,” Journal of Applied Psychology 72 (1987), pp. 212–20; H.J. Klein, M.J. Wesson, J.R. Hollenbeck, and B.J. Alge, “Goal Commitment and the Goal-Setting Process: Conceptual Clarification and Empirical Synthesis,” Journal of Applied Psychology 84 (1999), pp. 885–96; E.A. Locke, G.P. Latham, and M. Erez, “The Determi- nants of Goal Commitment,” Academy of Management Review 13 (1988), pp. 23–29; and G.P. Latham, “The Motivational Benefits of Goal-Setting,” Academy of Management Executive 18 (2004), pp. 126–29.
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Research in cross-cultural OB suggests that there are some “universals” when it comes to motiva- tion. For example, interesting work, pay, achievement, and growth are billed as motivating forces whose importance does not vary across cultures. Of course, some motivation principles do vary in their effectiveness across cultures, including some of the strategies for fostering goal commitment.
• Types of goals. Should goals be given on an individual or a groupwide basis? Employees in the United States usually prefer to be given individual goals. In contrast, employees in other coun- tries, including China and Japan, prefer to receive team goals. This difference likely reflects the stronger emphasis on collective responsibility and cooperation in those cultures.
• Rewards. Rewards tend to increase goal commitment across cultures, but cultures vary in the types of rewards that they value. Employees in the United States prefer to have rewards allocated according to merit. In contrast, employees in other countries—including China, Japan, and Sweden—prefer that rewards be allocated equally across members of the work unit. Employees in India prefer a third allocation strategy—doling out rewards according to need. These cultural differences show that nations differ in how they prioritize individual achievement, collective solidarity, and the welfare of others.
• Participation. National culture also affects the importance of participation in setting goals. Research suggests that employees in the United States are likely to accept assigned goals because the culture emphasizes hierarchical authority. In contrast, employees in Israel, which lacks a cultural emphasis on hierarchy, do not respond as well to assigned goals. Instead, employees in Israel place a premium on participation in goal setting.
• Feedback. Culture also influences how individuals respond when they receive feedback regard- ing goal progress. As with participation, research suggests that employees in the United States are more likely to accept feedback because they are comfortable with hierarchical authority relationships and have a strong desire to reduce uncertainty. Other cultures, like England, place less value on reducing uncertainty, making feedback less critical to them.
OB INTERNATIONALLY
Sources: H. Aguinis and C.A. Henle, “The Search for Universals in Cross-Cultural Organizational Behavior,” in Organizational Behavior: The State of the Science, ed. J. Greenberg (Mahwah, NJ: Erlbaum, 2003), pp. 373–411; P.C. Earley and C.B Gibson, “Taking Stock in Our Progress on Individualism–Collectivism: 100 Years of Solidarity and Community,” Journal of Manage- ment 24 (1998), pp. 265–304; M. Erez, “A Culture-Based Model of Work Motivation,” in New Perspectives on International Indus- trial/Organizational Psychology, ed. P.C. Earley and M. Erez (San Francisco: New Lexington Press, 1997), pp. 193–242; M. Erez and P.C. Earley, “Comparative Analysis of Goal-Setting Strategies Across Cultures,” Journal of Applied Psychology 72 (1987), pp. 658–65; and P.G. Audia and S. Tams, “Goal Setting, Performance Appraisal, and Feedback across Cultures,” in Blackwell Handbook of Cross-Cultural Management, ed. M.J. Gannon and K.L. Newman (Malden, MA: Blackwell, 2002), pp. 142–54.
Unlike the first two theories, equity theory acknowledges that motivation doesn’t just depend on your own beliefs and circumstances but also on what happens to other people.61 More specifi- cally, equity theory suggests that employees create a “mental ledger” of the outcomes (or rewards) they get from their job duties.62 What outcomes might be part of your mental ledger? That’s completely up to you and depends on what you find valuable, though Table 6-5 provides a listing of some commonly considered outcomes. Equity theory further suggests that employees create a mental ledger of the inputs (or contributions and investments) they put into their job duties.63 Again, the composition of your mental ledger is completely specific to you, but Table 6-5 provides a listing of some inputs that seem to matter to most employees.
So what exactly do you do with these mental tallies of outcomes and inputs? Equity theory argues that you compare your ratio of outcomes and inputs to the ratio of some comparison other—some person who seems to provide an intuitive frame of reference for judging equity.64 There are three general possibilities that can result from this “cognitive calculus,” as shown in
6.4 What does it mean to be equitably treated according to equity theory, and how do employees respond to inequity?
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Figure 6-6. The first possibility is that the ratio of outcomes to inputs is balanced between you and your comparison other. In this case, you feel a sense of equity, and you’re likely to maintain the intensity and persistence of your effort. This situation would have occurred if you had been offered playoff tickets, just like your colleague.
The second possibility is that your ratio of outcomes to inputs is less than your comparison other’s ratio. According to equity theory, any imbalance in ratios triggers equity distress—an inter- nal tension that can only be alleviated by restoring balance to the ratios.65 In an underreward case, the equity distress likely takes the form of negative emotions such as anger or envy. One way to stop feeling those emotions is to try to restore the balance in some way, and Figure 6-6 reveals two methods for doing so. You could be constructive and proactive by talking to your boss and explaining why you deserve better outcomes. Such actions would result in the growth of your out- comes, restoring balance to the ratio. Of course, anger often results in actions that are destructive rather than constructive, and research shows that feelings of underreward inequity are among the strongest predictors of counterproductive behaviors, such as employee theft (see Chapter 7 on trust, justice, and ethics for more on such issues).66 More relevant to this chapter, another means of restoring balance is to shrink your inputs by lowering the intensity and persistence of effort. Remember, it’s not the total outcomes or inputs that matter in equity theory—it’s only the ratio.
The third possibility is that your ratio of outcomes to inputs is greater than your comparison other’s ratio. Equity distress again gets experienced, and the tension likely creates negative emotions such as guilt or anxiety. Balance could be restored by shrinking your outcomes (taking less money, giving something back to the comparison other), but the theory acknowledges that such actions are unlikely in most cases.67 Instead, the more likely solution is to increase your inputs in some way. You could increase the intensity and persistence of your task effort or decide to engage in more “extra mile” citizenship behaviors. At some point though, there may not be enough hours in the day to increase your inputs any further. An alternative (and less labor-intensive) means of increasing your inputs is to simply rethink them—to reexamine your mental ledger to see if you may have “undersold” your true contributions. On second thought, maybe your education or seniority is more critical than you realized, or maybe your skills and abilities are more vital to the organization. This cognitive distortion allows you to restore balance mentally, without altering your behavior in any way.
There is one other way of restoring balance, regardless of underreward or overreward circum- stances, that’s not depicted in Figure 6-6: Change your comparison other. After all, we compare our “lots in life” to a variety of other individuals. Table 6-6 summarizes the different kinds of com- parison others that can be used.68 Some of those comparisons are internal comparisons, meaning that they refer to someone in the same company.69 Others are external comparisons, meaning that they refer to someone in a different company. If a given comparison results in high levels of anger
TABLE 6-5 Some Outcomes and Inputs Considered by Equity Theory
OUTCOMES INPUTS
Pay Effort
Seniority benefits Performance
Fringe benefits Skills and abilities
Status symbols Education
Satisfying supervision Experience
Workplace perks Training
Intrinsic rewards Seniority
Source: Adapted from J.S. Adams, “Inequity in Social Exchange,” in Advances in Experimental Social Psychology, Vol. 2, ed. L. Berkowitz (New York: Academic Press, 1965), pp. 267–99.
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Source: Adapted from J.S. Adams, “Inequity in Social Exchange,” in Advances in Experimental Social Psychology, Vol. 2, ed. L. Berkowitz (New York: Academic Press, 1965), pp. 267–99
FIGURE 6-6 Three Possible Outcomes of Equity Theory Comparisons
COMPARISON RESULT WAYS TO RESTORE BALANCE
Shrink your inputs by lowering the intensity or persistence of e�ort.
Grow your outcomes by talking to your boss or by stealing from the company.
Grow your inputs through more high quality work or through some “cognitive distortion.”
Shrink your outcomes (yeah, right! . . . let ’s see what we can do about those inputs . . .).
No actions needed.
Equity
=
Underreward Inequity
<
Overreward Inequity
>
Other’s Outcomes
Other’s Inputs
Your Outcomes
Your Inputs
Other’s Outcomes
Other’s Inputs
Your Outcomes
Your Inputs
Other’s Outcomes
Other’s Inputs
Your Outcomes
Your Inputs
and envy or high levels of guilt and anxiety, the frame of reference may be shifted. In fact, research suggests that employees don’t just compare themselves to one other person; instead, they make multiple comparisons to a variety of different others.70 Although it may be possible to create a sort of “overall equity” judgment, research shows that people draw distinctions between the various equity comparisons shown in the table. For example, one study showed that job equity was the most powerful driver of citizenship behaviors, whereas occupational equity was the most powerful driver of employee withdrawal.71
These mechanisms make it clear that judging equity is a very subjective process. Recent data from a Salary.com report highlight that very subjectivity. A survey of 1,500 employees revealed that 65 percent of the respondents planned to look for a new job in the next three months, with 57 percent doing so because they felt underpaid. However, Salary.com estimated that only 19 percent of those workers really were underpaid, taking into account their relevant inputs and the current market conditions. In fact, it was estimated that 17 percent were actually being over- paid by their companies! On the one hand, that subjectivity is likely to be frustrating to most man- agers in charge of compensation. On the other hand, it’s important to realize that the intensity and persistence of employees’ effort is driven by their own equity perceptions, not anyone else’s.
Perhaps many employees feel they’re underpaid because they compare their earnings with their CEOs’. In 1980, the median compensation for CEOs was 33 times that of the average worker. Three decades later, that ratio is more than 100 times the average worker’s compensation (and 1,000 times for the companies mentioned in the prior paragraph). Why do boards of directors
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grant such large compensation packages to CEOs? Although there are many reasons, some have speculated that the pay packages represent status symbols, with many CEOs viewing themselves in celebrity terms, along the lines of professional athletes.72 Alternatively, CEO pay packages may represent rewards for years of climbing the corporate ladder or insurance policies against the low job security for most CEOs.
Can such high pay totals ever be viewed as equitable in an equity theory sense? Well, CEOs likely have unusually high levels of many inputs, including effort, skills and abilities, education, experience, training, and seniority. CEOs may also use other CEOs as their comparison others—as opposed to rank-and-file employees—making them less likely to feel a sense of overreward inequity. Ultimately, however, the equity of their pay depends on how the company performs under them. Unfortunately, one analysis revealed a near-zero correlation between CEO pay and shareholder returns.73
Some organizations grapple with concerns about equity by emphasizing pay secrecy (though that doesn’t help with CEO comparisons, given that the Securities and Exchange Commission demands the disclosure of CEO pay for all publicly traded companies). One survey indicated that 36 percent of companies explicitly discourage employees from discussing pay with their colleagues, and surveys also indicate that most employees approve of pay secrecy.74 Is pay secrecy a good idea? Although it has not been the subject of much research, there appear to be pluses and minuses associated with pay secrecy. On the plus side, such policies may reduce conflict between employees while appealing to concerns about personal privacy. On the minus side, employees may respond to a lack of accurate information by guessing at equity levels, possibly perceiving more underpayment inequity than truly exists. In addition, the insistence on secrecy might cause employees to view the company with a sense of distrust (see Chapter 7 on trust, justice, and ethics for more on this issue).75
P SYC H O LO G I CA L E M P OW E R M E N T Now we return, for one last time, to our running example in Figure 6-1. When last we checked in, your motivation levels had suffered because you learned your coworker was offered the company’s playoff tickets for successfully completing a similar assignment. As you browse the web in total “time-wasting mode,” you begin thinking about all the reasons you hate working on this assignment. Even aside from the issue of goals and rewards, you keep coming back to this issue: You would never have taken on this project by choice. More specifically, the project itself doesn’t seem very meaningful, and you doubt that it will have any real impact on the functioning of the organization.
Those sentiments signal a low level of psychological empowerment, which reflects an energy rooted in the belief that work tasks contribute to some larger purpose.76 Psychological empower- ment represents a form of intrinsic motivation, in that merely performing the work tasks serves as
TABLE 6-6 Judging Equity with Different Comparison Others
COMPARISON TYPE DESCRIPTION
Job Equity Compare yourself to others doing the same job in the same com- pany, with similar levels of education, seniority, and performance.
Company Equity Compare yourself to others in the same company but in different jobs, with similar levels of responsibility and working conditions.
Occupational Equity Compare yourself to others doing the same job in other compa- nies, with similar levels of education, seniority, and performance.
Educational Equity Compare yourself to others who have attained the same educa- tion level.
Age Equity Compare yourself to others of the same age.
Source: Adapted from R.W. Scholl, E.A. Cooper, and J.F. McKenna, “Referent Selection in Determining Equity Percep- tions: Differential Effects on Behavioral and Attitudinal Outcomes,” Personnel Psychology 40 (1987), pp. 113–24.
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OB ON SCREEN STAR TREK BEYOND
The farther out we go, the more I find myself wondering what it is we’re trying to accomplish. If the universe is truly endless, then are we not striving for something forever out of reach?
With those words, Captain James T. Kirk (Chris Pine) expresses the crux of his problem in Star Trek Beyond (Dir. Justin Lin, Paramount Pictures, 2016). His ship, the U.S.S. Enterprise, is three years into a five-year mission in deep space. The mission hasn’t had a lot of glamour lately, between mapping solar systems and brokering peace treaties between alien civilizations. When one of those brokerings goes awry, Kirk has to utter his classic line, “Scotty, get me out of here!” He was talking about a planet, but could’ve also been talking about his job.
In a psychological empowerment sense, Kirk sees little purpose in his work. After all, what value is there in mapping out something that’s infinite? Moreover, in space on a starship, each day literally looks and feels exactly the same. Even when that peace treaty goes anything but peace- fully, all Kirk can say is “I ripped my shirt again.” When Dr. McCoy (Karl Urban) asks if Kirk is OK, the Captain responds, “Never better. Just another day in the fleet.”
To make matters worse, the monotony has begun to make Kirk doubt the meaningfulness and impact of what he’s doing. “As for me,” he notes in his log, “things have started to feel a little . . . episodic.” When the Enterprise docks for shore leave at Starbase Yorktown, Kirk is hopeful that it will lift the crew’s morale noting, “Perhaps a break from routine will offer up some respite from the mysteries of the unknown.” For his part, Kirk is about to explore a new job opportunity—leaving his post to become a vice admiral at the Yorktown. Perhaps that post is something more of his choosing, and more in line with what he’s good at. Will he really leave the Enterprise? In a “be careful what you wish for” twist, that answer depends on whether Kirk survives the challenge right around the corner.
©Entertainment Pictures/Alamy
its own reward and supplies many of the intrinsic outcomes shown in Table 6-2. The concept of psychological empowerment has much in common with our discussion of “satisfaction with the work itself” in Chapter 4 on job satisfaction. That discussion illustrated that jobs with high levels of variety, significance, and autonomy can be intrinsically satisfying.77 Models of psychological empowerment argue that a similar set of concepts can make work tasks intrinsically motivating. Four concepts are particularly important: meaningfulness, self-determination, competence, and impact. To see these concepts at play in deep space, see our OB on Screen feature.
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Meaningfulness captures the value of a work goal or purpose, relative to a person’s own ide- als and passions.78 When a task is relevant to a meaningful purpose, it becomes easier to con- centrate on the task and get excited about it. You might even find yourself cutting other tasks short so you can devote more time to the meaningful one or thinking about the task outside of work hours.79 In contrast, working on tasks that are not meaningful brings a sense of empti- ness and detachment. As a result, you might need to mentally force yourself to keep working on the task. Managers can instill a sense of meaningfulness by articulating an exciting vision or purpose and fostering a noncynical climate in which employees are free to express idealism and passion without criticism.80 For their part, employees can build their own sense of meaningful- ness by identifying and clarifying their own passions. Employees who are fortunate enough to be extremely passionate about their work sometimes describe it as “a calling”—something they were born to do.81
Self-determination reflects a sense of choice in the initiation and continuation of work tasks. Employees with high levels of self-determination can choose what tasks to work on, how to struc- ture those tasks, and how long to pursue those tasks. That sense of self-determination is a strong driver of intrinsic motivation, because it allows employees to pursue activities that they them- selves find meaningful and interesting.82 Managers can instill a sense of self-determination in their employees by delegating work tasks, rather than micromanaging them, and by trusting employees to come up with their own approach to certain tasks.83 For their part, employees can gain more self-determination by earning the trust of their bosses and negotiating for the latitude that comes with that increased trust.
Competence captures a person’s belief in his or her capability to perform work tasks success- fully.84 Competence is identical to the self-efficacy concept reviewed previously in this chapter; employees with a strong sense of competence (or self-efficacy) believe they can execute the par- ticular behaviors needed to achieve success at work. Competence brings with it a sense of pride and mastery that is itself intrinsically motivating. Managers can instill a sense of competence in their employees by providing opportunities for training and knowledge gain, expressing positive feedback, and providing challenges that are an appropriate match for employees’ skill levels.85 Employees can build their own competence by engaging in self-directed learning, seeking out feed- back from their managers, and managing their own workloads.
Impact reflects the sense that a person’s actions “make a difference”—that progress is being made toward fulfilling some important purpose.86 Phrases such as “moving forward,” “being on track,” and “getting there” convey a sense of impact.87 The polar opposite of impact is “learned helplessness”—the sense that it doesn’t matter what a person does, nothing will make a differ- ence. Here, phrases such as “stuck in a rut,” “at a standstill,” or “going nowhere” become more relevant. Managers can instill a sense of impact by celebrating milestones along the journey to task accomplishment, particularly for tasks that span a long time frame.88 Employees can attain a deeper sense of impact by building the collaborative relationships needed to speed task progress and initiating their own celebrations of “small wins” along the way.
Studies of generational trends point to the increas- ing interest of psychological empowerment as a motivating force. For example, one sur- vey of 3,332 teens worldwide revealed that 78 percent viewed personal fulfillment as a key motivator.89 There is also a sense that younger employees enter the workplace with higher expectations for the impor- tance of their roles, the auton- omy they’ll be given, and the progress they’ll make in their organizational careers. That trend is especially apparent in
6.5 What is psychological empowerment, and what four beliefs determine empowerment levels?
Young employees at MindTree, an information technology consulting firm, are given mentoring and personal attention to build a sense of empowerment.
©Namas Bhojani/AP Images
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India, where the younger generation is coming of age in a time of unprecedented job opportunities due to the tech-services boom. MindTree, an IT consulting firm headquartered in New Jersey and Bangalore, India, takes steps to prevent young employees from feeling “lost in a sea of people.”90 The company places new hires into “houses” with their own assembly space and work areas, provid- ing opportunities for more personal attention and mentoring. Infosys, another IT consulting firm based in Bangalore, established a “Voice of Youth Council” that places a dozen under-30 employ- ees on its executive management committee. The committee gives younger employees the chance to impact the company’s operations. Bela Gupta, the council’s youngest member at 24 years of age, describes the experience as “very empowering.”
S U M M A RY: W H Y A R E S O M E E M P LOY E E S M O R E M OT I VAT E D T H A N OT H E R S ? So what explains why some employees are more motivated than others? As shown in Figure 6-7, answering that question requires considering all the energetic forces that initiate work-related effort, including expectancy theory concepts (expectancy, instrumentality, valence), the existence (or absence) of specific and difficult goals, perceptions of equity, and feelings of psychological empowerment. Unmotivated employees may simply lack confidence due to a lack of expectancy or competence or the assignment of an unachievable goal. Alternatively, such employees may feel their performance is not properly rewarded due to a lack of instrumentality, a lack of valence, or feelings of inequity. Finally, it may be that their work simply isn’t challenging or intrinsically rewarding due to the assignment of easy or abstract goals or the absence of meaningfulness, self- determination, and impact.
H O W I M P O R TA N T I S M OT I VAT I O N ?
Does motivation have a significant impact on the two primary outcomes in our integrative model of OB—does it correlate with job performance and organizational commitment? Answering that question is somewhat complicated, because motivation is not just one thing but rather a set of energetic forces. Figure 6-8 summarizes the research evidence linking motivation to job perfor- mance and organizational commitment. The figure expresses the likely combined impact of those energetic forces on the two outcomes in our OB model.
Turning first to job performance, literally thousands of studies support the relationships between the various motivating forces and task performance. The motivating force with the stron- gest performance effect is self-efficacy/competence, because people who feel a sense of internal self-confidence tend to outperform those who doubt their capabilities.91 Difficult goals are the sec- ond most powerful motivating force; people who receive such goals outperform the recipients of easy goals.92 The motivational force created by high levels of valence, instrumentality, and expec- tancy is the next most powerful motivational variable for task performance.93 Finally, perceptions of equity have a somewhat weaker effect on task performance.94
Less attention has been devoted to the linkages between motivation variables and citizenship and counterproductive behavior. With respect to the former, employees who engage in more work-related effort would seem more likely to perform “extra mile” sorts of actions because those actions themselves require extra effort. The best evidence in support of that claim comes from research on equity. Specifically, employees who feel a sense of equity on the job are more likely to engage in citizenship behaviors, particularly when those behaviors aid the organization.95 The same employees are less likely to engage in counterproductive behaviors because such behaviors often serve as a retaliation against perceived inequities.96
As with citizenship behaviors, the relationship between motivation and organizational com- mitment seems straightforward. After all, the psychological and physical forms of withdrawal that characterize less committed employees are themselves evidence of low levels of motivation.
6.6 How does motivation affect job performance and orga- nizational commitment?
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FIGURE 6-7 Why Are Some Employees More Motivated Than Others?
MOTIVATING FORCES
Expectancy Instrumentality
Valence
Other's Inputs
Your Inputs
EFFORT
=
Meaningfulness
Self- Determination
Competence
Impact
Specific and Di�cult
Assigned Goal
Direction of E�ort
Intensity of E�ort
Persistence of E�ort
Self-Set Goal
PE O
Psychological Empowerment
Other's Outcomes
Your Outcomes
Clearly employees who are daydreaming, coming in late, and taking longer breaks are struggling to put forth consistently high levels of work effort. Research on equity and organizational com- mitment offers the clearest insights into the motivation–commitment relationship. Specifically, employees who feel a sense of equity are more emotionally attached to their firms and feel a stron- ger sense of obligation to remain.97
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FIGURE 6-8 Effects of Motivation on Performance and Commitment
Sources: Y. Cohen-Charash and P.E. Spector, “The Role of Justice in Organizations: A Meta-Analysis,” Organizational Behavior and Human Decision Processes 86 (2001), pp. 287–321; J.A. Colquitt, D.E. Conlon, M.J. Wesson, C.O.L.H. Porter, and K.Y. Ng, “Justice at the Millennium: A Meta-Analytic Review of 25 Years of Organizational Justice Research,” Journal of Applied Psychology 86 (2001), pp. 425–45; J.P. Meyer, D.J. Stanley, L. Herscovitch, and L. Topolnytsky, “Affec- tive, Continuance, and Normative Commitment to the Organization: A Meta-Analysis of Antecedents, Correlates, and Consequences,” Journal of Vocational Behavior 61 (2002), pp. 20–52; A.D. Stajkovic and F. Luthans, “Self-Efficacy and Work-Related Performance: A Meta-Analysis,” Psychological Bulletin 124 (1998), pp. 240–61; W. Van Eerde and H. Thierry, “Vroom’s Expectancy Models and Work-Related Criteria: A Meta-Analysis,” Journal of Applied Psychology 81 (1996), pp. 575–86; and R.E. Wood, A.J. Mento, and E.A. Locke, “Task Complexity as a Moderator of Goal Effects: A Meta-Analysis,” Journal of Applied Psychology 72 (1987), pp. 416–25.
Motivation has a strong positive e�ect on Job Performance. People who experience higher levels of motivation tend to have higher levels of Task Performance. Those e�ects are strongest for self-e�cacy/competence, followed by goal di�culty, the valence-instrumentality-expectancy combination, and equity. Less is known about the e�ects of motivation on Citizenship and Counterproductive Behavior, though equity has a moderate positive e�ect on the former and a moderate negative e�ect on the latter.
Less is known about the e�ects of Motivation on Organizational Commitment. However, equity has a moderate positive e�ect. People who experience higher levels of equity tend to feel higher levels of A�ective Commitment and higher levels of Normative Commitment. E�ects on Continuance Commitment are weaker.
Motivation Job
Performance
Motivation Organizational Commitment
Represents a strong correlation (around .50 in magnitude).
Represents a moderate correlation (around .30 in magnitude).
Represents a weak correlation (around .10 in magnitude).
A P P L I C AT I O N : C O M P E N S AT I O N S Y S T E M S
The most important area in which motivation concepts are applied in organizations is in the design of compensation systems. Table 6-7 provides an overview of many of the elements used in typical compensation systems. We use the term “element” in the table to acknowledge that most organizations use a combination of multiple elements to compensate their employees. Two points must be noted about Table 6-7. First, the descriptions of the elements are simplistic; the reality is that each of the elements can be implemented and executed in a variety of ways.98 Second, the elements are designed to do more than just motivate. For example, plans that put pay “at risk” rather than creating increases in base salary are geared toward control of labor costs. As another
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example, elements that stress individual achievement are believed to alter the composition of a workforce over time, with high achievers drawn to the organization while less motivated employ- ees are selected out. Finally, plans that reward unit or organizational performance are designed to reinforce collaboration, information sharing, and monitoring among employees, regardless of their impact on motivation levels.
One way of judging the motivational impact of compensation plan elements is to consider whether the elements provide difficult and specific goals for channeling work effort. Merit pay and profit sharing offer little in the way of difficult and specific goals because both essentially challenge employees to make next year as good (or better) than this year. In contrast, lump-sum bonuses and gain sharing provide a forum for assigning difficult and specific goals; the former does so at the individual level and the latter at the unit level. Partly for this reason, both types of plans have been credited with improvements in employee productivity.99
Another way of judging the motivational impact of the compensation plan elements is to con- sider the correspondence between individual performance levels and individual monetary out- comes. After all, that correspondence influences perceptions of both instrumentality and equity.
6.7 What steps can organiza- tions take to increase employee motivation?
TABLE 6-7 Compensation Plan Elements
ELEMENT DESCRIPTION
Individual-Focused
Piece-rate A specified rate is paid for each unit produced, each unit sold, or each service provided.
Merit pay An increase to base salary is made in accordance with perfor- mance evaluation ratings.
Lump-sum bonuses A bonus is received for meeting individual goals but no change is made to base salary. The potential bonus represents “at risk” pay that must be re-earned each year. Base salary may be lower in cases in which potential bonuses may be large.
Recognition awards Tangible awards (gift cards, merchandise, trips, special events, time off, plaques) or intangible awards (praise) are given on an impromptu basis to recognize achievement.
Unit-Focused
Gainsharing A bonus is received for meeting unit goals (department goals, plant goals, business unit goals) for criteria controllable by employees (labor costs, use of materials, quality). No change is made to base salary. The potential bonus represents “at risk” pay that must be re-earned each year. Base salary may be lower in cases in which potential bonuses may be large.
Organization-Focused
Profit sharing A bonus is received when the publicly reported earnings of a company exceed some minimum level, with the magnitude of the bonus contingent on the magnitude of the profits. No change is made to base salary. The potential bonus represents “at risk” pay that must be re-earned each year. Base salary may be lower in cases in which potential bonuses may be large.
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Profit sharing, for example, is unlikely to have strong motivational consequences because an indi- vidual employee can do little to improve the profitability of the company, regardless of his or her job performance.100 Instrumentality and equity are more achievable with gain sharing because the relevant unit is smaller and the relevant outcomes are more controllable. Still, the highest instru- mentality and equity levels will typically be achieved through individual-focused compensation elements, such as piece-rate plans or merit pay plans.
Of the two individual-focused elements, merit pay is by far the more common, given that it is difficult to apply piece-rate plans outside of manufacturing, sales, and service contexts. Indeed, one review estimated that merit pay is used by around 90 percent of U.S. organiza- tions.101 Criticisms of merit pay typically focus on a smaller than expected differentiation in pay across employees. One survey reported that pay increases for top performers (5.6 percent on average) are only modestly greater than the pay increases for average performers (3.3 percent on average).102 Such differences seem incapable of creating a perceived linkage between perfor- mance and outcomes (though merit reviews can also have indirect effects on pay by triggering promotions).103
A number of factors constrain instrumentality and equity in most applications of merit pay. As noted earlier, one such factor is budgetary constraints because many organizations freeze or limit pay increases during an economic downturn. Another factor is the accuracy of the actual performance evaluation. Think of all the times you’ve been evaluated by someone else, whether in school or in the workplace. How many times have you reacted by thinking, “Where did that rating come from?” or “I think I’m being evaluated on the wrong things!” Performance evalua- tion experts suggest that employees should be evaluated on behaviors that are controllable by the employees (see Chapter 2 on job performance for more discussion of such issues), observable by managers, and critical to the implementation of the firm’s strategy.104 The managers who conduct evaluations also need to be trained in how to conduct them, which typically involves gaining knowledge of the relevant behaviors ahead of time and being taught to keep records of employee behavior between evaluation sessions.105
Even if employees are evaluated on the right things by a boss who has a good handle on their performance, other factors can still undermine accuracy. Some managers might knowingly give inaccurate evaluations due to workplace politics or a desire to not “make waves.” One survey showed that 70 percent of managers have trouble giving poor ratings to underachieving employ- ees.106 Unfortunately, such practices only serve to damage instrumentality and equity because they fail to separate star employees from struggling employees. To ensure that such separation occurs, Yahoo! instituted a “stacked ranking” system to determine compensation, in which managers rank all the employees within their unit from top to bottom.107 Employees at the top end of those rank- ings then receive higher bonuses than employees at the bottom end. Although such practices raise concerns about employee morale and excessive competitiveness, research suggests that such forced distribution systems can boost the performance of a company’s workforce, especially for the first few years after their implementation.108
Finally, another factor that can hinder the effectiveness of merit pay is its typical once-a- year schedule. How long a shelf life can the motivational benefits of a salary increase really have? One month? Two months? Six? Such concerns have led a number of organizations to supplement other compensation elements with more widespread use of recognition awards. For example, Symantec, the Mountain View, California–based software firm, uses something called an Applause Program.109 It honors employees in real time with a combination of gift cards (worth up to $1,000) and electronic thank-you cards. Estimates suggest that around 65 percent of employees have been recognized with some form of “applause” since the program launched. The Everett Clinic, based in Everett, Washington, uses a number of different recognition awards, colorfully named HeroGrams, Caught in the Act cards, and Pat on the Back cards.110 Explains Daniel Debow, the founder of Rypple, a performance management system that resembles Face- book in its look and feel, “We live in a real-time world . . . so it’s crazy to think people wouldn’t want real-time feedback.”111
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6.1 Motivation is defined as a set of energetic forces that originates both within and outside an employee, initiates work-related effort, and determines its direction, intensity, and persistence.
6.2 According to expectancy theory, effort is directed toward behaviors when effort is believed to result in performance (expectancy), performance is believed to result in outcomes (instru- mentality), and those outcomes are anticipated to be valuable (valence).
6.3 According to goal setting theory, goals become strong drivers of motivation and perfor- mance when they are difficult and specific. Specific and difficult goals affect performance by increasing self-set goals and task strategies. Those effects occur more frequently when employees are given feedback, tasks are not too complex, and goal commitment is high.
6.4 According to equity theory, rewards are equitable when a person’s ratio of outcomes to inputs matches those of some relevant comparison other. A sense of inequity triggers equity distress. Underreward inequity typically results in lower levels of motivation or higher levels of counterproductive behavior. Overreward inequity typically results in cognitive distortion, in which inputs are reevaluated in a more positive light.
6.5 Psychological empowerment reflects an energy rooted in the belief that tasks are contribut- ing to some larger purpose. Psychological empowerment is fostered when work goals appeal to employees’ passions (meaningfulness), employees have a sense of choice regarding work tasks (self-determination), employees feel capable of performing successfully (competence), and employees feel they are making progress toward fulfilling their purpose (impact).
6.6 Motivation has a strong positive relationship with job performance and a moderate positive relationship with organizational commitment. Of all the energetic forces subsumed by moti- vation, self-efficacy/competence has the strongest relationship with performance.
6.7 Organizations use compensation practices to increase motivation. Those practices may include individual-focused elements (piece-rate, merit pay, lump-sum bonuses, recognition awards), unit-focused elements (gain sharing), or organization-focused elements (profit sharing).
TA K E AWAY S
K E Y T E R M S
• Motivation p. 162 • Engagement p. 163 • Expectancy theory p. 164 • Expectancy p. 164 • Self-efficacy p. 165 • Past accomplishments p. 165 • Vicarious experiences p. 165 • Verbal persuasion p. 165 • Emotional cues p. 165 • Instrumentality p. 166 • Valence p. 166 • Needs p. 166 • Extrinsic motivation p. 167 • Intrinsic motivation p. 167 • Meaning of money p. 168 • Goal setting theory p. 170 • Specific and difficult goals p. 170
• Self-set goals p. 170 • Task strategies p. 170 • Feedback p. 172 • Task complexity p. 172 • Goal commitment p. 172 • S.M.A.R.T. goals p. 173 • Equity theory p. 174 • Comparison other p. 174 • Equity distress p. 175 • Cognitive distortion p. 175 • Internal comparisons p. 175 • External comparisons p. 175 • Psychological empowerment p. 177 • Meaningfulness p. 179 • Self-determination p. 179 • Competence p. 179 • Impact p. 179
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6.1 Which of the outcomes in Table 6-2 are most appealing to you? Are you more attracted to extrinsic outcomes or intrinsic outcomes? Do you think that your preferences will change as you get older?
6.2 Assume that you were working on a group project and that one of your teammates was nervous about speaking in front of the class during the presentation. Drawing on Figure 6-3, what exactly could you do to make your classmate feel more confident?
6.3 Consider the five strategies for fostering goal commitment (rewards, publicity, support, participation, and resources). Which of those strategies do you think is most effective? Can you picture any of them having potential drawbacks?
6.4 How do you tend to respond when you experience overreward and underreward inequity? Why do you respond that way rather than with some other combination in Figure 6-6?
6.5 Think about a job that you’ve held in which you felt very low levels of psychological empow- erment. What could the organization have done to increase empowerment levels?
D I S C U S S I O N Q U E S T I O N S
One motivational issue that Google pays particular attention to concerns its star performers. Most organizations treat performance evaluation ratings—and accompanying compensation differences—much like grades in a college course. Just as a distribution of grades might have a few A’s, more A–’s, B+’s, B’s, and B–’s, and a few C’s, so too do performance evaluations wind up with a few 5’s, more 4’s, 3’s, and 2’s, and a few 1’s. Thus, scores and rewards have a “bell curve” distribution, with fewer people in the tails and more in the middle. Moreover, just as an A is only a bit more rewarding than an A–, so too does a 5 get just a bit more than a 4.
Although there’s a logic to that view of evaluation and compensation, it misses an important insight from scientific work on performance. That work suggests that the top 1 percent of performers contribute 10 percent of the firm’s productivity all by themselves. Similarly, the top 5 percent of performers contribute 25 percent of the productivity all by themselves. Put differently, stars aren’t just a little bit better than typical employees—they’re worlds better. This is especially true in white collar jobs where there are no equipment or process constraints on what employees can do. As Bill Gates once argued, “A great lathe operator commands several times the wage of an average lathe operator, but a great writer of software code is worth 10,000 times the price of an average software writer.”
Laszlo Bock, the former head of Google’s People Operations group, followed such advice when rewarding star performers. He argues, “Internal pay systems don’t move quickly enough or offer enough pay flexibility to pay the best people what they are actually worth. The rational thing for you to do, as an exceptional performer, is to quit.” Thus, Google prac- tices what he calls “paying unfairly”—where “unfairly” means a rejection of the notion that 5’s should only get a little more than 4’s or 3’s. “If the best performer is generating ten times as much impact as an average performer, they shouldn’t necessarily get ten times the reward,” Bock notes, “but I’d wager they should get at least five times the reward.” He continues, “The only way to stay within budget is to give smaller rewards to the poorer performers, or even the average ones. That won’t feel good initially, but take comfort in know- ing that you’ve now given your best people a reason to stay with you, and everyone else a reason to aim higher.”
C A S E : G O O G L E
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6.1 Do you agree with Bock that star performers should get a lot more—not just a little more— than average performers? If someone earning a 3 on Google’s evaluation system gets a 2 percent raise, what should employees earning 4’s and 5’s get?
6.2 Given the budget issues created by giving star performers more, should someone earning a 3 get a 2 percent raise—or should they get less? What are the arguments for and against a 2 percent raise level for average performers?
6.3 Consider all the things Google’s People Operations group does to motivate its employees. Which motivation theories do they seem to be leveraging, and how?
Sources: L. Bock, Work Rules! Insights from Inside Google that Will Transform How You Live and Lead. New York: Twelve, 2015; E. O’Boyle Jr. and H. Aguinis, “The Best and the Rest: Revisiting the Norm of Normality of Individual Perfor- mance.” Personnel Psychology, 65, 79–119.
EXERCISE: EXPLAINING PAY DIFFERENCES
The purpose of this exercise is to demonstrate how compensation can be used to influence moti- vation. This exercise uses groups, so your instructor will either assign you to a group or ask you to create your own group. The exercise has the following steps:
6.1 Read the following scenario: Chris Clements and Pat Palmer are both computer program- mers working for the same Fortune 500 company. One day they found out that Chris earns $60,820 per year, while Pat earns $72,890. Chris was surprised and said, “I can’t think of any reason why we should be paid so differently.” “I can think of at least 10 reasons,” Pat responded. Can you, like Pat, think of at least 10 reasons that could cause this difference in salary between two people? These reasons can be legal or illegal, wise or unwise.
6.2 Going around the group from member to member, generate a list of 10 conceivable reasons why Pat may be earning more than Chris. Remember, the reasons can be legal or illegal, wise or unwise.
6.3 Consider whether the theories discussed in the chapter—expectancy theory, goal setting the- ory, equity theory, and psychological empowerment—are relevant to the list of reasons you’ve generated. Maybe one of the theories supports the wisdom of a given reason. For example, maybe Pat’s job is more difficult than Chris’s job. Equity theory would support the wisdom of that reason because job difficulty is a relevant input. Maybe one of the theories questions the wisdom of a given reason. For example, maybe Chris’s boss believes that salary increases are a poor use of limited financial resources. Expectancy theory would question the wisdom of that reason because that philosophy harms instrumentality.
6.4 Elect a group member to write the group’s 10 reasons on the board. Then indicate which theories are relevant to the various reasons by writing one or more of the following abbrevia- tions next to a given reason: EX for expectancy theory, GS for goal setting theory, EQ for equity theory, and PE for psychological empowerment.
6.5 Class discussion (whether in groups or as a class) should center on which theories seem most relevant to the potential reasons for the pay differences between Chris and Pat. Are there some potential reasons that don’t seem relevant to any of the four theories? Do those reasons tend to be legal or illegal, wise or unwise?
Source: Adapted from Renard, M.K. “It’s All about the Money: Chris and Pat Compare Salaries.” Journal of Management Education 32 (2008), pp. 248–61.
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6.1 Steers, R.M.; R.T. Mowday; and D. Shapiro. “The Future of Work Motivation.” Academy of Manage- ment Review 29 (2004), pp. 379–87; and Latham, G.P. Work Motivation: History, Theory, Research, and Practice. Thousand Oaks, CA: Sage, 2006.
6.2 Latham, G.P., and C.C. Pinder. “Work Motivation Theory and Research at the Dawn of the Twenty- First Century.” Annual Review of Psychology 56 (2005), pp. 485–516.
6.3 Maier, N.R.F. Psychol- ogy in Industry, 2nd ed. Boston: Houghton Mifflin, 1955.
6.4 Kahn, W.A. “Psycho- logical Conditions of Personal Engagement and Disengagement at Work.” Academy of Management Journal 33 (1990), pp. 692–724.
6.5 Rich, B.L.; J.A. LePine; and E.R. Crawford. “Job Engagement: Antecedents and Effects on Job Perfor- mance.” Academy of Management Journal 52 (2009), pp. 617–35; Schaufeli, W.B.; M. Salanova; V. Gonzalez- Roma; and A.B. Bakker. “The Measure- ment of Engagement and Burnout: A Two Sample Confirma- tory Factor Analytic Approach.” Journal
of Happiness Studies 3 (2002), pp. 71–92; and Macy, W.H., and B. Schneider. “The Meaning of Employee Engagement.” Industrial and Organizational Psychology 1 (2008), pp. 3–30.
6.6 Ibid.; and Rothbard, N.P. “Enriching or Depleting? The Dynamics of Engage- ment in Work and Family Roles.” Administrative Science Quarterly 46 (2001), pp. 655–84.
6.7 Harter, J.K.; F.L. Schmidt; and T.H. Hayes. “Business-Unit- Level Relationship between Employee Satisfaction, Employee Engagement, and Business Outcomes: A Meta-Analysis.” Journal of Applied Psychology 87 (2002), pp. 268–79.
6.8 O’Boyle, E., and J. Harter. “State of the American Workplace.” Gallup, June 29, 2013, http://www .gallup.com/strategic consulting/163007/ state-american- workplace.aspx.
6.9 Woolley, S. “New Pri- orities for Employers.” Bloomberg Business- week, September 13–19, 2010, p. 54.
6.10 Bakker, A.B., and D. Xanthopoulou. “The Crossover of Daily Work Engagement: Test
of an Actor-Partner Interdependence Model.” Journal of Applied Psychology 94 (2009), pp. 1562–71.
6.11 Vroom, V.H. Work and Motivation. New York: Wiley, 1964.
6.12 Ibid.; see also Thorn- dike, E.L. “The Law of Effect.” American Journal of Psychology 39 (1964), pp. 212–22; Hull, C.L. Essentials of Behavior. New Haven: Yale University Press, 1951; and Postman, L. “The History and Pres- ent Status of the Law of Effect.” Psychological Bulletin 44 (1947), pp. 489–563.
6.13 Bandura, A. “Self- Efficacy: Toward a Unifying Theory of Behavioral Change.” Psychological Review 84 (1977), pp. 191–215.
6.14 Brockner, J. Self-Esteem at Work. Lexington, MA: Lexington Books, 1988.
6.15 Bandura, “Self-Efficacy.”
6.16 Ibid.
6.17 Ibid.
6.18 Gist, M.E., and T.R. Mitchell. “Self-Efficacy: A Theoretical Analysis of Its Determinants and Malleability.” Academy of Management Review 17 (1992), pp. 183–211.
6.19 Vroom, Work and Motivation.
E N D N OT E S
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6.20 Pinder, C.C. Work Moti- vation. Glenview, IL: Scott, Foresman, 1984.
6.21 Stillings, J., and L. Snyder. “Up Front: The Stat.” BusinessWeek, July 4, 2005, p. 12.
6.22 Henneman, T. “Cracks in the Ice.” Workforce Management, November 2010, pp. 30–36.
6.23 Source: Henneman, T. “Cracks in the Ice.” Workforce Manage- ment, November 2010, pp. 30–36.
6.24 Vroom, Work and Motivation.
6.25 Pinder, Work Motivation.
6.26 Landy, F.J., and W.S. Becker. “Motivation Theory Reconsidered.” In Research in Organiza- tional Behavior, Vol. 9, ed. B.M. Staw and L.L. Cummings. Greenwich, CT: JAI Press, 1987, pp. 1–38; and Naylor, J.C.; D.R. Pritchard; and D.R. Ilgen. A Theory of Behavior in Orga- nizations. New York: Academic Press, 1980.
6.27 Maslow, A.H. “A Theory of Human Moti- vation.” Psychological Review 50 (1943), pp. 370–96; and Alderfer, C.P. “An Empirical Test of a New Theory of Human Needs.” Orga- nizational Behavior and Human Performance 4 (1969), pp. 142–75.
6.28 Ibid.; see also Deci, E.L., and R.M. Ryan. “The ‘What’ and ‘Why’ of Goal Pursuits: Human Needs and the
Self-Determination of Behavior.” Psychological Inquiry 11 (2000), pp. 227–68; Cropan- zano, R.; Z.S. Byrne; D.R. Bobocel; and D.R. Rupp. “Moral Virtues, Fairness Heuristics, Social Entities, and Other Denizens of Organizational Justice.” Journal of Vocational Behavior 58 (2001), pp. 164–209; Williams, K.D. “Social Ostra- cism.” In Aversive Inter- personal Behaviors, ed. R.M. Kowalski. New York: Plenum Press, 1997, pp. 133–70; and Thomas, K.W., and B.A. Velthouse. “Cognitive Elements of Empowerment: An ‘Interpretive’ Model of Intrinsic Task Motiva- tion.” Academy of Management Review 15 (1990), pp. 666–81.
6.29 Deci and Ryan, “The ‘What’ and ‘Why’”; and Naylor et al., A Theory of Behavior in Organizations.
6.30 Ibid.
6.31 Source: Huff, C. “Motivating Workers Worldwide.” Workforce Management, Septem- ber 24, 2007, pp. 25–31.
6.32 Speizer, I. “Incentives Catch on Overseas, but Value of Awards Can Too Easily Get Lost in Translation.” Workforce, November 21, 2005, pp. 46–49.
6.33 Huff, “Motivating the World”; and Speizer, “Incentives Catch on Overseas.”
6.34 Rynes, S.L.; B. Gerhart; and K.A. Minette. “The Importance of Pay in Employee Motivation: Discrepancies between What People Say and What They Do.” Human Resource Management 43 (2004), pp. 381–94; and Rynes, S.L.; K.G. Brown; and A.E. Col- bert. “Seven Common Misconceptions about Human Resource Prac- tices: Research Findings versus Practitioner Beliefs.” Academy of Management Executive 16 (2002), pp. 92–102.
6.35 Rynes et al., “The Importance of Pay.”
6.36 Ibid.
6.37 Mitchell, T.R., and A.E. Mickel. “The Meaning of Money: An Individual Differences Perspective.” Academy of Management Review 24 (1999), pp. 568–78.
6.38 Tang, T.L. “The Meaning of Money Revisited.” Journal of Organizational Behavior 13 (1992), pp. 197–202; and Mickel, A.E., and L.A. Barron. “Getting ‘More Bang for the Buck.’” Journal of Management Inquiry 17 (2008), pp. 329–38.
6.39 Tang, T.L. “The Development of a Short Money Ethic Scale: Attitudes toward Money and Pay Satis- faction Revisited.” Personality and Indi- vidual Differences 19 (1995), pp. 809–16.
6.40 Tang, “The Meaning of Money Revisited.”
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6.41 Ibid.; and Tang, “The Development of a Short Money Ethic Scale.”
6.42 Tang, “The Develop- ment of a Short Money Ethic Scale.”
6.43 Vroom, Work and Moti- vation; and Lawler III, E.E., and J.L. Suttle. “Expectancy Theory and Job Behavior.” Organizational Behavior and Human Perfor- mance 9 (1973), pp. 482–503.
6.44 Locke, E.A. “Toward a Theory of Task Motivation and Incen- tives.” Organizational Behavior and Human Performance 3 (1968), pp. 157–89.
6.45 Locke, E.A.; K.N. Shaw; L.M. Saari; and G.P. Latham. “Goal Setting and Task Per- formance: 1969–1980.” Psychological Bulletin 90 (1981), pp. 125–52.
6.46 Locke, E.A., and G.P. Latham. A Theory of Goal Setting and Task Performance. Englewood Cliffs, NJ: Prentice Hall, 1990.
6.47 Ibid.
6.48 Ibid.
6.49 Ibid.; see also Locke, E.A., and G.P. Latham. “Building a Practically Useful Theory of Goal Setting and Task Motivation: A 35-Year Odyssey.” American Psychologist 57 (2002), pp. 705–17; and Latham, G.P. “Motivate Employee Performance
through Goal-Setting.” In Blackwell Handbook of Principles of Organi- zational Behavior, ed. E.A. Locke. Malden, MA: Blackwell, 2000, pp. 107–19.
6.50 Locke and Latham, A Theory of Goal Setting.
6.51 Locke et al., “Goal Setting and Task Performance.”
6.52 Ibid.; Locke and Latham, A Theory of Goal Setting; and Locke and Latham, “Building a Practically Useful Theory.”
6.53 Wood, R.E.; A.J. Mento; and E.A. Locke. “Task Complex- ity as a Moderator of Goal Effects: A Meta- Analysis.” Journal of Applied Psychology 72 (1987), pp. 416–25.
6.54 Ibid.
6.55 Barrett, A. “Cracking the Whip at Wyeth.” BusinessWeek, February 6, 2006, pp. 70–71.
6.56 Hollenbeck, J.R., and H.J. Klein. “Goal Commitment and the Goal-Setting Process: Problems, Prospects, and Proposal for Future Research.” Journal of Applied Psychology 72 (1987), pp. 212–20; see also Locke et al., “Goal Setting and Task Performance.”
6.57 Klein, H.J.; M.J. Wesson; J.R. Hollenbeck; and B.J. Alge. “Goal Commitment and the Goal-Setting Process:
Conceptual Clarifica- tion and Empirical Synthesis.” Journal of Applied Psychology 84 (1999), pp. 885–96; and Donovan, J.J., and D.J. Radosevich. “The Moderating Role of Goal Commitment on the Goal Difficulty– Performance Relation- ship: A Meta-Analytic Review and Critical Reanalysis.” Journal of Applied Psychology 83 (1998), pp. 308–15.
6.58 Hollenbeck and Klein, “Goal Commitment and the Goal-Setting Process”; Klein et al., “Goal Commitment”; Locke, E.A.; G.P Latham; and M. Erez. “The Determinants of Goal Commitment.” Academy of Manage- ment Review 13 (1988), pp. 23–29; and Latham, G.P. “The Motivational Benefits of Goal- Setting.” Academy of Management Execu- tive 18 (2004), pp. 126–29.
6.59 Shaw, K.N. “Chang- ing the Goal Setting Process at Microsoft.” Academy of Manage- ment Executive 18 (2004), pp. 139–42.
6.60 Ibid.
6.61 Adams, J.S., and W.B. Rosenbaum. “The Relationship of Worker Productivity to Cognitive Dissonance about Wage Inequities.” Journal of Applied Psychology 46 (1962), pp. 161–64.
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6.62 Adams, J.S. “Inequity in Social Exchange.” In Advances in Experimen- tal Social Psychology, Vol. 2, ed. L. Berkowitz. New York: Academic Press, 1965, pp. 267–99; and Homans, G.C. Social Behaviour: Its Elementary Forms. London: Routledge & Kegan Paul, 1961.
6.63 Ibid.
6.64 Adams, “Inequality in Social Exchange.”
6.65 Ibid.
6.66 Greenberg, J. “Employee Theft as a Reaction to Underpay- ment Inequity: The Hidden Cost of Payc- uts.” Journal of Applied Psychology 75 (1990), pp. 561–68; and Greenberg, J. “Stealing in the Name of Justice: Informational and Interpersonal Modera- tors of Theft Reactions to Underpayment Ineq- uity.” Organizational Behavior and Human Decision Processes 54 (1993), pp. 81–103.
6.67 Adams, “Inequality in Social Exchange.”
6.68 Scholl, R.W.; E.A. Coo- per; and J.F. McKenna. “Referent Selection in Determining Equity Perceptions: Differen- tial Effects on Behav- ioral and Attitudinal Outcomes.” Personnel Psychology 40 (1987), pp. 113–24.
6.69 Ibid.
6.70 Ibid.; see also Finn, R.H., and S.M. Lee.
“Salary Equity: Its Determination, Analy- sis, and Correlates.” Journal of Applied Psychology 56 (1972), pp. 283–92.
6.71 Scholl et al., “Referent Selection.”
6.72 Sulkowicz, K. “CEO Pay: The Prestige, the Peril.” BusinessWeek, November 20, 2006, p. 18.
6.73 Silver-Greenberg, J., and A. Leondis. “How Much Is a CEO Worth?” Bloomberg Businessweek, May 10–16, 2010, pp. 70–71.
6.74 Colella, A.; R.L. Paet- zold; A. Zardkoohi; and M. Wesson. “Exposing Pay Secrecy.” Academy of Management Review 32 (2007), pp. 55–71.
6.75 Ibid.
6.76 Thomas, K.W., and B.A. Velthouse. “Cognitive Elements of Empowerment: An ‘Interpretive’ Model of Intrinsic Task Motiva- tion.” Academy of Management Review 15 (1990), pp. 666–81.
6.77 Hackman, J.R., and G.R. Oldham. Work Redesign. Reading, MA: Addison-Wesley, 1980.
6.78 Thomas and Velthouse, “Cognitive Elements of Empowerment”; Spre- itzer, G.M. “Psychologi- cal Empowerment in the Workplace: Dimen- sions, Measurement, and Validation.” Acad- emy of Management Journal 38 (1995),
pp. 1442–65; Deci, E.L., and R.M. Ryan. Intrinsic Motivation and Self-Determination in Human Behavior. New York: Plenum, 1985; and Hackman and Old- ham, Work Redesign.
6.79 Thomas, K.W. Intrinsic Motivation at Work: Building Energy and Commitment. San Fran- cisco: Berrett-Koehler, 2000.
6.80 Ibid.
6.81 Bunderson, J.S., and J.A. Thompson. “The Call of the Wild: Zookeepers, Callings, and the Double-Edged Sword of Deeply Mean- ingful Work.” Adminis- trative Science Quarterly 54 (2009), pp. 32–57; Duffy, R.D., and W.E. Sedlacek. “The Pres- ence of and Search for a Calling: Connections to Career Develop- ment.” Journal of Vocational Behavior 70 (2007), pp. 590–601; and Hagmaier, T., and A.E. Abele. “The Multi- dimensionality of Call- ing: Conceptualization, Measurement and a Bicultural Perspective.” Journal of Vocational Behavior 81 (2012). pp. 39–51.
6.82 Thomas and Velthouse, “Cognitive Elements of Empowerment”; and Spreitzer, “Psychologi- cal Empowerment.”
6.83 Thomas, Intrinsic Moti- vation at Work.
6.84 Thomas and Velthouse, “Cognitive Elements of
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Empowerment”; and Spreitzer, “Psychologi- cal Empowerment.”
6.85 Thomas, Intrinsic Moti- vation at Work.
6.86 Thomas and Velthouse, “Cognitive Elements of Empowerment.”
6.87 Thomas, Intrinsic Moti- vation at Work.
6.88 Thomas, Intrinsic Moti- vation at Work.
6.89 Gerdes, L. “Get Ready for a Pickier Work- force.” BusinessWeek, September 18, 2006, p. 82.
6.90 Hamm, S. “Young and Impatient in India.” BusinessWeek, January 28, 2008, pp. 45–48.
6.91 Stajkovic, A.D., and F. Luthans. “Self-Efficacy and Work-Related Performance: A Meta- Analysis.” Psychological Bulletin 124 (1998), pp. 240–61.
6.92 Wood et al., “Task Complexity as a Moderator.”
6.93 Van Eerde, W., and H. Thierry. “Vroom’s Expectancy Models and Work-Related Cri- teria: A Meta-Analysis.” Journal of Applied Psychology 81 (1996), pp. 575–86.
6.94 Cohen-Charash, Y., and P.E. Spector. “The Role of Justice in Organizations: A Meta-Analysis.” Organizational Behavior
and Human Decision Processes 86 (2001), pp. 287–321; and Colquitt, J.A.; D.E. Conlon; M.J. Wesson; C.O.L.H. Porter; and K.Y. Ng. “Justice at the Millen- nium: A Meta-Analytic Review of 25 Years of Organizational Justice Research.” Journal of Applied Psychology 86 (2001), pp. 425–45.
6.95 Ibid.
6.96 Ibid.
6.97 Ibid.
6.98 Lawler III, E.E. Rewarding Excellence: Pay Strategies for the New Economy. San Francisco: Jossey-Bass, 2000; and Gerhart, B.; S.L. Rynes; and I.S. Fulmer. “Pay and Performance: Indi- viduals, Groups, and Executives.” Academy of Management Annals, 3 (2009), pp. 251–315.
6.99 Ibid.; see also Durham, C.C., and K.M. Bartol. “Pay for Performance.” In Handbook of Prin- ciples of Organizational Behavior, ed. E.A. Locke. Malden, MA: Blackwell, 2000, pp. 150–65; and Gerhart, B.; H.B. Minkoff; and R.N. Olsen. “Employee Compensation: Theory, Practice, and Evi- dence.” In Handbook of Human Resource Management, ed. G.R. Ferris, S.D. Rosen, and D.T. Barnum. Malden,
MA: Blackwell, 1995, pp. 528–47.
6.100 Ibid.
6.101 Gerhart et al., “Pay and Performance”; and Cohen, K. “The Pulse of the Profes- sion: 2006–2007 Budget Survey.” Work- span, September 2006, pp. 23–26.
6.102 Hansen, F. “Merit-Pay Payoff?” Workforce Management, Novem- ber 3, 2008, pp. 33–39.
6.103 Ibid.
6.104 Latham, G., and S. Latham. “Overlook- ing Theory and Research in Perfor- mance Appraisal at One’s Peril: Much Done, More to Do.” In Industrial and Organizational Psychology: Linking Theory with Practice, ed. C.L. Cooper and E.A. Locke. Oxford, UK: Blackwell, 2000, pp. 199–215.
6.105 Ibid.
6.106 Sulkowicz, K. “Straight Talk at Review Time.” BusinessWeek, September 10, 2007, p. 16.
6.107 McGregor, J. “The Struggle to Measure Perfor- mance.” Business- Week, January 9, 2006, pp. 26–28.
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Psychology 58 (2005), pp. 1–32.
6.109 Shepherd, L. “Getting Personal.” Workforce Manage- ment, September 2010, pp. 24–29.
6.108 Scullen, S.E.; P.K. Bergey; and L. Aiman- Smith. “Forced Distri- bution Rating Systems and the Improve- ment of Workforce Potential: A Baseline Simulation.” Personnel
6.110 Ibid.
6.111 Pyrillis, R. “The Reviews Are In.” Workforce Manage- ment, May 2011, pp. 20–25.
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7
LEARNING GOALS
7.1 What is trust, and how does it relate to justice and ethics? 7.2 In what three sources can trust be rooted? 7.3 What dimensions can be used to describe the trustworthiness of an authority? 7.4 What dimensions can be used to describe the fairness of an authority’s decision making? 7.5 What is the four-component model of ethical decision making? 7.6 How does trust affect job performance and organizational commitment? 7.7 What steps can organizations take to become more trustworthy?
After reading this chapter, you should be able to answer the following questions:
Trust, Justice, and Ethics
INDIVIDUAL OUTCOMES
INDIVIDUAL MECHANISMS
INDIVIDUAL CHARACTERISTICS
ORGANIZATIONAL MECHANISMS
Organizational Culture
Organizational Structure
Teams: Processes &
Communication
Motivation
Trust, Justice, & Ethics
Teams: Characteristics &
Diversity Learning &
Decision Making
Ability
Personality & Cultural Values
Stress
Leadership: Power &
Negotiation
Job Satisfaction
Leadership: Styles &
Behaviors
Organizational Commitment
Job Performance
GROUP MECHANISMS
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W hat image comes to mind when you picture Sea- World? Dolphins? Penguins? Chances are it’s a powerful majestic killer whale—or orca—jumping
out of the water or splashing the audience with its tail. The company owns 89,000 animals in total, but it’s the 29 orcas that have always gotten the lion’s share of attention. After years of controversy, however, theatrical orca shows are being phased out at SeaWorld’s parks.
The controversy over SeaWorld’s orcas began in 2010 when a whale named Tilly killed a trainer. That incident led to an investigation by the Occupational Safety and Health Administration and—more famously—a scathing documen- tary called Blackfish. That film debuted at the Sundance film festival in 2013 and tied Tilly to two additional deaths, making the case that the whale became violent due to cap- tivity. As Blackfish played widely on CNN and Netflix, more and more people expressed criticism of SeaWorld on social media. People for the Ethical Treatment of Animals (PETA) staged protests of SeaWorld, both at its parks and at the homes of its executives. The criticisms triggered by Black- fish cut to the core of SeaWorld as a company. Its mission
was to care for and train animals in captivity, with the film making the case that captivity itself was unethical. Initially, the company responded in ways that only exacerbated the ethical issue. Aside from launching a combative public rela- tions campaign, it also sent staff members “undercover” as animal rights activists to spy on PETA.
Joel Manby—SeaWorld’s new CEO—has helped to steady the ship. It was Manby who made the decision to phase out the theatrical orca shows. He commissioned a nine-month study that showed a majority of Americans thought that keeping large creatures in small spaces was unethical. It was also Manby who devoted SeaWorld to a more educa- tion- and conservation-focused mission. Such activities have always been in SeaWorld’s DNA, as when it helped rescue hundreds of animals stranded on the California Coast in 2015. “I really felt the company was getting a bad rap,” notes Manby. “I wanted to help them get through this.” Manby’s new vision for the park is “experiences that matter.” Visitors will increasingly be taken “behind the scenes” to see all the things that SeaWorld does to care for the planet and its creatures.
SEAWORLD
©Asif Islam/Shutterstock
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T R U S T, J U S T I C E , A N D E T H I C S
One reason companies care about ethical issues is that a firm’s reputation is one of its most prized possessions. An organization’s reputation reflects the prominence of its brand in the minds of the public and the perceived quality of its goods and services.1 Reputation is an intangible asset that can take a long time to build but, as Ben Franklin once noted, can be cracked as easily as glass or china.2 That’s especially the case today, when one bad experience with any company can be tweeted, shared on Facebook, posted on a blog, or videotaped and uploaded to YouTube. Although we typically think about a company’s reputation in reference to potential consumers, it matters to employees as well. Recruitment experts maintain that top performers want to work at organizations with clean reputations, in part because they want to protect their own personal image. Indeed, one survey found that 78 percent of adults would rather work at a company with an excellent reputation and an average salary than at a company with a high salary and a poor reputation.3 Who are some companies with excellent reputations? Table 7-1 provides the top 25 from Fortune’s list of “Most Admired Companies.”
Reputations depend on many things, but one of the most important factors is trust. Trust is defined as the willingness to be vulnerable to a trustee based on positive expectations about the trustee’s actions and intentions.4 If a customer trusts the quality of a company’s products or ser- vices, that customer is willing to accept the consequences of paying money to the company. If a potential recruit trusts the words of a company’s management, that recruit is willing to accept the consequences of becoming a member of the organization. Both examples illustrate that trusting reflects a willingness to “put yourself out there,” even though doing so could be met with disap- pointment. The examples also highlight the difference between “trust” and “risk.” Actually mak- ing yourself vulnerable—by buying products or accepting a job—constitutes risk. Trust reflects the willingness to take that risk. Unfortunately, trust in many companies has declined sharply due to
TABLE 7-1 The World’s Most Admired Companies
1. Apple 14. Netflix
2. Amazon 15. Costco
3. Starbucks 16. Coca-Cola
4. Berkshire Hathaway 17. American Express
5. Walt Disney 18. Nordstrom
6. Google 19. Procter & Gamble
7. General Electric 20. Salesforce.com
8. Southwest Airlines 21. BMW
9. Facebook 22. JPMorgan Chase
10. Microsoft 23. 3M
11. FedEx 24. IBM
12. Nike 25. USAA
13. Johnson & Johnson 25. Marriott
Source: From C. Tkaczyk, “The World’s Most Admired Companies,” Fortune, March 1, 2015.
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corporate scandals and economic shifts. Indeed, one recent survey revealed that only 44 percent of Americans say they trust business, down from 58 percent one year earlier.5 “Trust is what drives profit margin and share price,” notes the CEO of one branding and marketing firm. “It is what consumers are looking for and what they share with one another.”
This chapter focuses on trust in organizational authorities, a group that could include the CEO of an organization, its top management team, or supervisors and managers within the firm. These authorities “put a face on a company,” giving employees and customers a means of judg- ing a company’s reputation. These authorities are also capable of having a significant influence on the performance and commitment of employees. As you’ll see in the chapter, trust in these authorities depends on two related concepts. Justice reflects the perceived fairness of an author- ity’s decision making.6 When employees perceive high levels of justice, they believe that decision outcomes are fair and that decision-making processes are designed and implemented in a fair manner. Justice concepts can be used to explain why employees judge some authorities to be more trustworthy than others.7 Ethics reflects the degree to which the behaviors of an authority are in accordance with generally accepted moral norms.8 When employees perceive high levels of ethics, they believe that things are being done the way they “should be” or “ought to be” done. Ethics concepts can be used to explain why authorities decide to act in a trustworthy or untrust- worthy manner.
W H Y A R E S O M E AU T H O R I T I E S M O R E T R U S T E D T H A N OT H E R S ?
Think about a particular boss or instructor—someone you’ve spent a significant amount of time around. Do you trust that person? Would you be willing to let that person have significant influ- ence over your professional or educational future? For example, would you be willing to let that person serve as a reference for you or write you a letter of recommendation, even though you’d have no way of monitoring what he or she said about you? When you think about the level of trust you feel for that particular authority, what exactly makes you feel that way? This question speaks to the factors that drive trust—the factors that help inspire a willingness to be vulnerable.
T R U ST As shown in Figure 7-1, trust is rooted in three different kinds of factors. Sometimes trust is disposition-based, meaning that your personality traits include a general propensity to trust others. Sometimes trust is cognition-based, meaning that it’s rooted in a rational assessment of the author- ity’s trustworthiness.9 Sometimes trust is affect-based, meaning that it depends on feelings toward the authority that go beyond any rational assessment.10 The sections that follow describe each of these trust forms in more detail.
DISPOSITION-BASED TRUST Disposition-based trust has less to do with a particular authority and more to do with the trustor. Some trustors are high in trust propensity—a general expectation that the words, promises, and statements of individuals and groups can be relied upon.11 Some have argued that trust propensity represents a sort of “faith in human nature,” in that trusting people view others in more favorable terms than do suspicious people.12 The importance of trust propensity is most obvious in interactions with strangers, in which any acceptance of vulnerability would amount to “blind trust.”13 On the one hand, people who are high in trust propensity may be fooled into trusting others who are not worthy of it.14 On the other hand, those who are low in trust propensity may be penalized by not trusting someone who is actually deserving of it. Both situations can be damaging; as one scholar noted, “We are doomed if we trust all and equally doomed if we trust none.”15 Where do you stack up on trust propensity? See our OB Assessments feature to find out.
Where does our trust propensity come from? As with all traits, trust propensity is a product of both nature and nurture (see Chapter 9 on personality and cultural values for more discussion
7.1 What is trust, and how does it relate to justice and ethics?
7.2 In what three sources can trust be rooted?
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Source: Adapted from R.C. Mayer, J.H. Davis, and F.D. Schoorman, “An Integrative Model of Organizational Trust,” Academy of Management Review 20 (1995), pp. 709–34; and D.J. McAllister, “Affect- and Cognition-Based Trust as Foun- dations for Interpersonal Cooperation in Organizations,” Academy of Management Journal 38 (1995), pp. 24–59.
FIGURE 7-1 Factors That Influence Trust Levels
Trust
Ability
Benevolence
Integrity
Trust Propensity
Feelings toward Trustee
Disposition-Based Trust
Cognition-Based Trust
A�ect-Based Trust
Trustworthiness
of such issues). If our parents are dispositionally suspicious, we may either inherit that tendency genetically or model it as we watch them exhibit distrust in their day-to-day lives. Research also suggests that trust propensity is shaped by early childhood experiences.16 In fact, trust propensity may be one of the first personality traits to develop because infants must immediately learn to trust their parents to meet their needs. The more our needs are met as children, the more trusting we become; the more we are disappointed as children, the less trusting we become. Our propensi- ties continue to be shaped later in life as we gain experiences with friends, schools, churches, local government authorities, and other relevant groups.17
The nation in which we live also affects our trust propensity. Research by the World Values Study Group examines differences between nations on various attitudes and perceptions. The study group collects interview data from 45 different societies with a total sample size of more than 90,000 participants. One of the questions asked by the study group measures trust propen- sity. Specifically, participants are asked, “Generally speaking, would you say that most people can be trusted or that you can’t be too careful in dealing with people?” Figure 7-2 shows the percent- age of participants who answered “Most people can be trusted” for this question, as opposed to “Can’t be too careful,” for several of the nations included in the study. The results reveal that trust propensity levels are actually relatively high in the United States, especially in relation to countries in Europe and South America.
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OB ASSESSMENTS
Sources: R.C. Mayer and J.H. Davis, “The Effect of the Performance Appraisal System on Trust for Management: A Field Quasi-Experiment,” Journal of Applied Psychology 84 (1999), pp. 123–36.
TRUST PROPENSITY Are you a trusting person or a suspicious person by nature? This assessment is designed to mea- sure trust propensity—a dispositional willingness to trust other people. Answer each question using the response scale provided. Then subtract your answers to the boldfaced questions from 6, with the difference being your new answers for those questions. For example, if your original answer for question 4 was “4,” your new answer is “2” (6 – 4). Then sum up your answers for the eight questions. (Instructors: Assessments on procedural justice, moral attentiveness, and moral identity can be found in the PowerPoints in the Connect Library’s Instructor Resources and in the Connect assignments for this chapter.)
1 STRONGLY DISAGREE
2 DISAGREE
3 NEUTRAL
4 AGREE
5 STRONGLY
AGREE
1. One should be very cautious with strangers.
2. Most experts tell the truth about the limits of their knowledge.
3. Most people can be counted on to do what they say they will do.
4. These days, you must be alert or someone is likely to take advantage of you.
5. Most salespeople are honest in describing their products.
6. Most repair people will not overcharge people who are ignorant of their specialty.
7. Most people answer public opinion polls honestly.
8. Most adults are competent at their jobs.
SCORING AND INTERPRETATION If your scores sum up to 21 or above, you tend to be trusting of other people, which means you’re often willing to accept some vulnerability to others under conditions of risk. If your scores sum up to 20 or below, you tend to be suspicious of other people, which means you’re rarely willing to accept such vulnerability.
COGNITION-BASED TRUST Disposition-based trust guides us in cases when we don’t yet have data about a particular authority. However, eventually we gain enough knowledge to gauge the authority’s trustworthiness, defined as the characteristics or attributes of a trustee that inspire trust.18 At that point, our trust begins to be based on cognitions we’ve developed about the author- ity, as opposed to our own personality or disposition. In this way, cognition-based trust is driven by the authority’s “track record.”19 If that track record has shown the authority to be trustworthy,
7.3 What dimensions can be used to describe the trust- worthiness of an authority?
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then vulnerability to the authority can be accepted. If that track record is spotty however, then trust may not be warranted. Research suggests that we gauge the track record of an authority along three dimensions: ability, benevolence, and integrity.20
The first dimension of trustworthiness is ability, defined as the skills, competencies, and areas of expertise that enable an authority to be successful in some specific area (see Chapter 10 on ability for more discussion of such issues).21 Think about the decision-making process that you go through when choosing a doctor, lawyer, or mechanic. Clearly one of the first things you consider is ability because you’re not going to trust them if they don’t know a scalpel from a retractor, a tort from a writ, or a camshaft from a crankshaft. Of course, listing a specific area is a key compo- nent of the ability definition; you wouldn’t trust a mechanic to perform surgery, nor would you trust a doctor to fix your car! The ability of business authorities may be considered on a number of levels. For example, managers may be judged according to their functional expertise in a particular voca- tion but also according to their leadership skills and their general business sense.
The second dimension of trustworthiness is benevolence, defined as the belief that the authority wants to do good for the trustor, apart from any selfish or profit-centered
Source: Adapted from J.J. Johnson and J.B. Cullen, “Trust in Cross-Cultural Relationships,” in Blackwell Handbook of Cross-Cultural Management, ed. M.J. Gannon and K.L. Newman (Malden, MA: Blackwell, 2002), pp. 335–60.
FIGURE 7-2 Trust Propensities by Nation
0 10 20 30 40 50 60 70
Sweden China
Netherlands Canada
United States Ireland Britain Japan Russia
Italy India
Spain South Korea
Mexico South Africa
France Argentina
Chile Portugal Romania
Turkey Brazil
Percentage Agreeing “Most People Can Be Trusted”
Children whose needs are generally met tend to grow
into trusting adults.
©Brand X Pictures/Getty Images
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motives.22 When authorities are perceived as benevolent, it means that they care for employees, are concerned about their well- being, and feel a sense of loyalty to them. The mentor–protégé relationship provides a good example of benevolence at work, in that the best mentors go out of their way to be helpful apart from concerns about finan- cial rewards.23 The management at Meijer, the Grand Rapids, Michigan–based supermarket chain, seems to understand the importance of benevolence.24 Meijer added a five-day course on “positive organizational scholarship” to its leadership training program. The training stresses the importance of positive communication and a culture of kindness in the organization. The chain, which operates 180 stores with 60,000 employees, is attempting to compete with the likes of Walmart by maximizing the commitment of its workforce. David Beach, the vice president of workforce planning and development, noted, “We realized that we need our company to be a place where people want to work.”25
The third dimension of trustworthiness is integrity, defined as the perception that the author- ity adheres to a set of values and principles that the trustor finds acceptable.26 When authorities have integrity, they are of sound character—they have good intentions and strong moral disci- pline.27 Integrity also conveys an alignment between words and deeds—a sense that authorities keep their promises, “walk the talk,” and “do what they say they will do.”28 Unfortunately, one survey indicated that only around 20 percent of American workers view senior managers as acting in accordance with their words.29 A few years ago Domino’s Pizza showed an unusual amount of integrity in its advertising and business operations. Despite the fact that its market share was holding steady, the company admitted that customers didn’t think its pizza was all that great.30 Domino’s president vowed to put 40 percent more herbs in its sauce, use better cheese, and add a special glaze to its crust. The end result is a better-tasting pizza (in our humble opinion, anyway!), an increase in sales,31 and the sense that Domino’s management “tells it how it is.”
Questions about integrity extend beyond senior management, however. For example, studies suggest that rank-and-file employees lie more frequently when communicating by e-mail because there are no “shifty eyes” or nervous ticks to give them away. Indeed, one study showed that peo- ple were more likely to lie via e-mail than when writing letters using pen and paper.32 Why would those contexts differ, when neither is face-to-face? It may be that e-mail feels more fleeting than paper and that the ability to delete what you write—even if you ultimately don’t—makes you choose words more casually. Regardless, the lies can begin even before employees are hired, as one survey of managers by CareerBuilder.com revealed that 49 percent had caught an applicant lying on a résumé.33 Among the more colorful “exaggerations” were claims of membership in Mensa, listing a degree from a fictitious university, and pretending to be a Kennedy. For a discussion of integrity during the delivery of feedback, see our OB at the Bookstore feature.
AFFECT-BASED TRUST Although ability, benevolence, and integrity provide three good rea- sons to trust an authority, the third form of trust isn’t actually rooted in reason. Affect-based trust is more emotional than rational. With affect-based trust, we trust because we have feelings for the person in question; we really like them and have a fondness for them. Those feelings are what prompt us to accept vulnerability to another person. Put simply, we trust them because we like them. Some of that trust can even be chemical, as research shows that something as common as a hug can stimulate a hormone called oxytocin—sometimes called the “cuddle chemical”—that causes your brain to be more trusting.34
Affect-based trust acts as a supplement to the types of trust discussed previously.35 Figure 7-3 describes how the various forms of trust can build on one another over time. In new relation- ships, trust depends solely on our own trust propensity. In most relationships, that propensity eventually gets supplemented by knowledge about ability, benevolence, or integrity, at which point
After admitting that the company needed to change its pizza recipe and ingredients, Domino’s set out to get people to try the new and improved version.
©Gareth Fuller/PA Wire URN:9540468/AP Images
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OB AT THE BOOKSTORE RADICAL CANDOR by Kim Scott (New York: St. Martin’s Press, 2017).
Developing trust is not simply a matter of ‘do x, y, and z, and you have a good relationship.’ Like all human bonds, the connections between bosses and the people who report to them are unpredictable and not subject to absolute rules. But I have identified two dimensions that, when paired, will help you move in a positive direction.
With those words, Kim Scott describes how to foster trust between managers and their employees. What are the two dimensions? The first is called “Care Personally.” It involves viewing employees as whole human beings—as caring about more than just their skills. Scott’s description sounds a lot like the benevolence aspect of trust- worthiness, as it involves a caring that goes beyond profit maximiza- tion. The second is called “Challenge Directly.” It involves being truly honest with employees about their performance—when it’s good and (especially) when it’s bad. Scott argues that this sort of challenging cuts to the core of what managers are obligated to do. As such, it has elements of the ability and integrity aspects of trustworthiness.
Where does the book’s title come from? Scott describes Radical Candor as the combination of high levels of Care Personally and Challenge Directly. That combination is important. Proving that they truly care about employees is what gives managers the reserve of
good will during times when challenging is needed. Without that good will, the challenging would offend rather than redirect.
Of course, Scott doesn’t pretend that Radical Candor is easy. “It’s brutally hard to tell people when they are screwing up,” she writes. “You don’t want to hurt anyone’s feelings; that’s because you’re not a sadist. You don’t want that person or the rest of the team to think you’re a jerk. Plus, you’ve been told since you learned to talk, ‘If you don’t have anything nice to say, don’t say anything at all.’ Now all of a sudden it’s your job to say it. You’ve got to undo a lifetime of train- ing. Management is hard.” Fortunately, Scott provides a number of specific tips for meeting that challenge.
©Roberts Publishing Services
cognition-based trust develops. In a select few of those relationships, an emotional bond develops, and our feelings for the trustee further increase our willingness to accept vulnerability. These relationships are characterized by a mutual investment of time and energy, a sense of deep attach- ment, and the realization that both parties would feel a sense of loss if the relationship were dissolved.36
SUMMARY Taken together, disposition-based trust, cognition-based trust, and affect-based trust provide three completely different sources of trust in a particular authority. In the case of disposition-based trust, our willingness to be vulnerable has little to do with the authority and more to do with our genes and our early life experiences. In the case of affect-based trust, our willingness to be vulnerable has little to do with a rational assessment of the authority’s merits and more to do with our emotional fondness for the authority. Only in the case of cognition-based trust do we rationally evaluate the pluses and minuses of an authority, in terms of its ability,
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Sources: Adapted from R.J. Lewicki and B.B. Bunker, “Developing and Maintaining Trust in Work Relationships,” in Trust in Organizations: Frontiers of Theory and Research, ed. R.M. Kramer and T.R. Tyler (Thousand Oaks, CA: Sage, 1996), pp. 114–39; and R.C. Mayer, J.H. Davis, and F.D. Schoorman, “An Integrative Model of Organizational Trust,” Academy of Management Review 20 (1995), pp. 709–34.
FIGURE 7-3 Types of Trust Over Time
Time
Disposition- Based Trust
Cognition- Based Trust
A�ect- Based Trust
New Relationships
Most Relationships
Few Relationships
benevolence, and integrity. But how exactly do we gauge those trustworthiness forms? One way is to consider whether authorities adhere to rules of justice.
J U ST I C E It’s often difficult to assess the ability, benevolence, and integrity of authorities accurately, par- ticularly early in a working relationship. What employees need in such circumstances is some sort of observable behavioral evidence that an authority might be trustworthy. Justice provides that sort of behavioral evidence because authorities who treat employees more fairly are usually judged to be more trustworthy.37 As shown in Table 7-2, employees can judge the fairness of an author- ity’s decision making along four dimensions: distributive justice, procedural justice, interpersonal justice, and informational justice.
DISTRIBUTIVE JUSTICE Distributive justice reflects the perceived fairness of decision-making outcomes.38 Employees gauge distributive justice by asking whether decision outcomes—such as pay, rewards, evaluations, promotions, and work assignments—are allocated using proper norms. In most business situations, the proper norm is equity, with more outcomes allocated to those who contribute more inputs (see Chapter 6 on motivation for more discussion of such issues). The equity norm is typically judged to be the fairest choice in situations in which the goal is to maximize the productivity of individual employees.39
However, other allocation norms become appropriate in situations in which other goals are critical. In team-based work, building harmony and solidarity in work groups can become just as important as individual productivity. In such cases, an equality norm may be judged fairer, such that all team members receive the same amount of relevant rewards.40 The equality norm is typi- cally used in student project groups, in which all group members receive exactly the same grade on a project, regardless of their individual productivity levels. In cases in which the welfare of a particular employee is the critical concern, a need norm may be judged fairer. For example, some organizations protect new employees from committee assignments and other extra activities, so that they can get their careers off to a productive start.
7.4 What dimensions can be used to describe the fairness of an authority’s decision making?
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PROCEDURAL JUSTICE In addition to judging the fairness of a decision outcome, employees may consider the process that led to that outcome. Procedural justice reflects the perceived fair- ness of decision-making processes.41 Procedural justice is fostered when authorities adhere to rules of fair process. One of those rules is voice, or giving employees a chance to express their opinions and views during the course of decision making.42 A related rule is correctability, which provides employees with a chance to request an appeal when a procedure seems to have worked ineffectively. Research suggests that these rules improve employees’ reactions to decisions,43 largely because they give employees a sense of ownership over the decisions. Employees tend to value voice and appeals, even when they don’t result in the desired outcome,44 because they like to be heard. That is, the expression of opinions is a valued end, in and of itself, when employees believe that their opinions have been truly considered.
Aside from voice and correctability, procedural justice is fostered when authorities adhere to four rules that serve to create equal employment opportunity.45 The consistency, bias suppression, representativeness, and accuracy rules help ensure that procedures are neutral and objective, as opposed to biased and discriminatory. These sorts of procedural rules are relevant in many areas of working life. As one example, the rules can be used to make hiring practices more fair by ensur- ing that interview questions are unbiased and asked in the same manner across applications. As
TABLE 7-2 The Four Dimensions of Justice
DISTRIBUTIVE JUSTICE RULES DESCRIPTION
Equity vs. equality vs. need Are rewards allocated according to the proper norm?
PROCEDURAL JUSTICE RULES
Voice Do employees get to provide input into procedures?
Correctability Do procedures build in mechanisms for appeals?
Consistency Are procedures consistent across people and time?
Bias suppression Are procedures neutral and unbiased?
Representativeness Do procedures consider the needs of all groups?
Accuracy Are procedures based on accurate information?
INTERPERSONAL JUSTICE RULES
Respect Do authorities treat employees with sincerity?
Propriety Do authorities refrain from improper remarks?
INFORMATIONAL JUSTICE RULES
Justification Do authorities explain procedures thoroughly?
Truthfulness Are those explanations honest?
Sources: J.S. Adams, “Inequity in Social Exchange,” in Advances in Experimental Social Psychology, Vol. 2, ed. L. Berkowitz (New York: Academic Press, 1965), pp. 267–99; R.J. Bies and J.F. Moag, “Interactional Justice: Communication Criteria of Fairness,” in Research on Negotiations in Organizations, Vol. 1, ed. R.J. Lewicki, B.H. Sheppard, and M.H. Bazerman (Greenwich, CT: JAI Press, 1986), pp. 43–55; G.S. Leventhal, “The Distribution of Rewards and Resources in Groups and Organizations,” in Advances in Experimental Social Psychology, Vol. 9, ed. L. Berkowitz and W. Walster (New York: Academic Press, 1976), pp. 91–131; G.S. Leventhal, “What Should Be Done with Equity Theory? New Approaches to the Study of Fairness in Social Relationships,” in Social Exchange: Advances in Theory and Research, ed. K. Gergen, M. Greenberg, and R. Willis (New York: Plenum Press, 1980), pp. 27–55; and J. Thibaut and L. Walker, Procedural Justice: A Psychological Analysis (Hillsdale, NJ: Erlbaum, 1975).
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another example, the rules can be used to make compensation practices fairer by ensuring that accurate measures of job performance are used to provide input for merit raises.
These sorts of procedural justice rules are critical because employment data suggest that gen- der and race continue to have significant influences on organizational decision making. Compen- sation data suggest that women earn 83 cents for every dollar earned by a man. Such differences are even greater in highly skilled jobs such as doctors (63 cents), lawyers (78 cents), financial ana- lysts (69 cents), and CEOs (74 cents).46 Some portion of the gender pay gap can be explained by the kinds of fields men and women are drawn to and the “caregiving tax” that some women pay by being more responsible for child care than male significant others. Even after accounting for such factors, however, estimates still suggest that women earn 91 cents for every dollar a man makes.47 As a result, sex discrimination cases have risen dramatically in recent years, with each victory adding weight to existing concerns about justice. As one employment lawyer put it, “Employees already mistrust employers. So each time a case reveals a secret that was never told, employees think, ‘Aha! They really are paying men more than women.’ ”48
Compensation data also suggest that African American men earn only 76 percent of what Caucasian men earn.49 Education differences don’t explain the gap because Caucasian high school dropouts are twice as likely to find jobs as African American dropouts. Such differences are likely due to procedural injustice in some form, with procedures functioning in an inconsistent, biased, and inaccurate manner across Caucasian and African American applicants. Indeed, one study of almost 9,000 personnel files in an information technology firm found that Caucasian men received bigger merit raises than minority and female employees, even when their performance evaluation ratings were identical.50 The study’s author noted, “The disparities are small but very real. And any difference is evidence of bias.”
Consumer Reports serves as a good example of procedural justice in action. The magazine conducts the tests for its influential automotive ratings on its own 327-acre test site.51 The rat- ings are performed by both experienced engineers and more typical drivers, while also taking into account surveys of the magazine’s print and online subscribers. Consumer Reports helps ensure bias suppression by refusing to include advertisements in its magazine.52 It also buys all its test cars anonymously from regular dealerships, as opposed to using the vehicles offered by automakers. It helps ensure accuracy by putting 5,000–6,000 miles on a car for as long as 10 months and taking the car through approximately 50 different tests. Indeed, to measure fuel efficiency, it installs a fuel meter directly on the gas line, rather than relying on the accuracy of the vehicle’s own gauges. Finally, Consumer Reports helps ensure consistency by putting each vehicle through the exact same set of examinations. Although automakers have occasionally sued Consumer Reports to protest negative ratings, the magazine has never lost a case and has never paid a dime in settlements.
You might be wondering, “Does procedural justice really matter—don’t people just care about the outcomes that they receive?” In the case of Consumer Reports, don’t companies care just about the score their products receive, not how those scores are actually calculated? Research suggests that distributive justice and procedural justice combine to influence employee reactions, as shown in Figure 7-4.53 It’s true that when outcomes are good, people don’t spend as much time worrying about how fair the process was, as illustrated by the green line in the figure, which shows that pro- cedural justice has little impact on reactions when outcome favorability is high. However, when outcomes are bad, procedural justice becomes enormously important, as illustrated by the red line in the figure. Research shows that negative or unexpected events trigger a thorough examination of process issues, making adherence to rules like consistency, bias suppression, and accuracy much more vital.54
In fact, research shows that procedural justice tends to be a stronger driver of reactions to authorities than distributive justice. For example, meta-analyses of hundreds of studies showed that procedural justice was a stronger predictor of satisfaction with supervision, overall job satis- faction, and organizational commitment than distributive justice.55 Why does the decision-making process sometimes matter more than the decision-making outcome? Likely because employees understand that outcomes come and go—some may be in your favor while others may be a bit disappointing. Procedures, however, are longer lasting and stay in place until the organization redesigns them or a new authority arrives to revise them.
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INTERPERSONAL JUSTICE In addition to judging the fairness of decision outcomes and pro- cesses, employees might consider how authorities treat them as the procedures are implemented. Interpersonal justice reflects the perceived fairness of the treatment received by employees from authorities.56 Interpersonal justice is fostered when authorities adhere to two particular rules. The respect rule pertains to whether authorities treat employees in a dignified and sincere manner, and the propriety rule reflects whether authorities refrain from making improper or offensive remarks. From this perspective, interpersonal injustice occurs when authorities are rude or disrespectful to employees, or when they refer to them with inappropriate labels.57
When taken to the extremes, interpersonally unjust actions create abusive supervision, defined as the sustained display of hostile verbal and nonverbal behaviors, excluding physical contact.58 A national study suggests that approximately 15 percent of employees are victims of abusive behav- iors, ranging from angry outbursts to public ridiculing to being used as scapegoats for negative events.59 Estimates also indicate that such actions cost U.S. businesses around $24 billion annu- ally due to absenteeism, health care costs, and lost productivity.60 Employees who are abused by their supervisors report more anxiety, burnout, and strain, as well as less satisfaction with their lives in general.61 They are also more likely to strike back at their supervisors with coun- terproductive behaviors—a response that may even spill over to their coworkers and the larger organization.62
Why are interpersonally unjust actions so damaging? One reason may be that people remem- ber unfair acts more vividly than fair ones. One study asked 41 employees to complete a survey on interactions with authorities and coworkers four times a day for two to three weeks.63 Two kinds of interactions were coded—positive experiences and negative experiences—and participants also reported on their current mood (e.g., happy, pleased, sad, blue, unhappy). The results of the study showed that positive interactions were more common than negative interactions, but the effects of negative interactions on mood were five times stronger than the effects of positive interactions. Such findings suggest that a violation of the respect and propriety rules looms much larger than adherence to those rules.64
For these reasons, some companies have taken advantage of a growing number of “civility train- ing” programs offered by consulting firms.65 One such program is CREW—Civility, Respect, and Engagement in the Workplace—that was developed for the Veterans Health Administration, the
FIGURE 7-4 Combined Effects of Distributive and Procedural Justice
Low High
Procedural Justice
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Source: Adapted from J. Brockner and B.M. Wiesenfeld, “An Integrative Framework for Explaining Reactions to Decisions: Interactive Effects of Outcomes and Procedures,” Psychological Bulletin 120 (1996), pp. 189–208.
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Washington, DC–based hospital arm of the Veterans Affairs Department. The program was administered to more than 900 work- groups over a six-month period, with the groups learning about the benefits of respectful com- munication and how to bring more civility to contentious situations, such as problem solving and dispute contexts. The director of organiza- tional health for the VHA said, “It’s a simplistic formula. It’s just: How do we want to treat each other?”66 She noted that the benefits of the program seemed to be “viral,” with increased respect being contagious at the VHA.
INFORMATIONAL JUSTICE Finally, employees may consider the kind of information that authorities provide during the course of organizational decision making. Informational justice reflects the perceived fairness of the communications provided to employees from authorities.67 Informational justice is fostered when authorities adhere to two particular rules. The justification rule mandates that authorities explain decision-making procedures and outcomes in a compre- hensive and reasonable manner, and the truthfulness rule requires that those communications be honest and candid. Although it seems like common sense that organizations would explain decisions in a comprehensive and adequate manner, that’s often not the case. Sharing bad news is the worst part of the job for most managers, leading them to distance themselves when it’s time to play messenger.68 A survey of 372 human resources professionals revealed that almost 75 percent felt stress, anxiety, and depression when they had to conduct layoffs during the eco- nomic downturn.69
Managers also worry about triggering a lawsuit if they comprehensively and honestly explain the reasons for a layoff, a poor evaluation, or a missed promotion. Ironically, that defense mecha- nism is typically counterproductive because research suggests that honest and adequate explana- tions are actually a powerful strategy for reducing retaliation responses against the organization.70 In fact, low levels of informational justice can come back to haunt the organization if a wrongful termination claim is actually filed. How? Because the organization typically needs to provide performance evaluations for the terminated employee over the past few years, to show that the employee was fired for poor performance.71 If managers refrained from offering candid and hon- est explanations on those evaluations, then the organization can’t offer anything to justify the termination.
One study provides a particularly effective demonstration of the power of informational justice (and interpersonal justice). The study occurred in three plants of a midwestern manufacturing company that specialized in small mechanical parts for the aerospace and automotive indus- tries.72 The company had recently lost two of its largest contracts and was forced to cut wages by 15 percent in two of the three plants. The company was planning to offer a short, impersonal explanation for the pay cut to both of the affected plants. However, as part of a research study, the company was convinced to offer a longer, more sincere explanation at one of the plants. Theft lev- els were then tracked before, during, and after the 10-week pay cut using the company’s standard accounting formulas for inventory “shrinkage.”
The results of the study are shown in Figure 7-5. In the plant without the pay cut, no change in theft levels occurred over the 10-week period. In the plant with the short, impersonal explana- tion, theft rose dramatically during the pay cut, likely as a means of retaliating for perceived ineq- uity, before falling to previous levels once the cut had passed. Importantly, in the plant with the long, sincere explanation, the rise in theft was much less significant during the pay cut, with theft levels again falling back to normal levels once the cut had ended. Clearly, the higher levels of infor- mational and interpersonal justice were worth it from a cost-savings perspective. The difference in theft across the two plants is remarkable, given that the long, sincere explanation was only a few minutes longer than the short, impersonal explanation. What’s a few extra minutes if it can save a few thousand dollars?
When interpersonal injustice gets taken to the extreme, it can turn into abusive supervision. Estimates suggest that 15 percent of employees are victims of abusive behaviors at work.
©John Foxx/Getty Images
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Source: Adapted from J. Greenberg, “Employee Theft as a Reaction to Underpayment Inequity: The Hidden Cost of Payc- uts,” Journal of Applied Psychology 75 (1990), pp. 561–68.
FIGURE 7-5 The Effects of Justice on Theft During a Pay Cut
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SUMMARY Taken together, distributive, procedural, interpersonal, and informational justice can be used to describe how fairly employees are treated by authorities. When an authority adheres to the justice rules in Table 7-2, those actions provide behavioral data that the authority might be trustworthy. Indeed, studies show that all four justice forms have strong correlations with employee trust levels.73 All else being equal, employees trust authorities who allocate outcomes fairly; make decisions in a consistent, unbiased, and accurate way; and communicate decision- making details in a respectful, comprehensive, and honest manner. Which authorities are most likely to adhere to these sorts of rules? Research on ethics can provide some answers.
E T H I C S Research on ethics seeks to explain why people behave in a manner consistent with generally accepted norms of morality and why they sometimes violate those norms.74 The study of business ethics has two primary threads to it. One thread is prescriptive in nature, with scholars in philoso- phy debating how people ought to act using various codes and principles.75 The prescriptive model is the dominant lens in discussions of legal ethics, medical ethics, and much of economics. The second thread is descriptive in nature, with scholars relying on scientific studies to observe how people tend to act based on certain individual and situational characteristics. The descriptive model is the dominant lens in psychology. Although the differences between these two threads give the study of business ethics a certain complexity, the philosophical and empirical approaches can be integrated to develop a more complete understanding of ethical behavior.
Some studies of business ethics focus on unethical behavior—behavior that clearly violates accepted norms of morality.76 Unethical behaviors in organizations can be directed at employees (e.g., discrimination, harassment, health and safety violations, ignoring labor laws), customers (e.g., invading privacy, violating contract terms, using false advertising, fabricating test results), financiers (e.g., falsifying financial information, misusing confidential information, trading securities based on inside information), or society as a whole (e.g., violating environmental regulations, exposing the public to safety risks, doing business with third parties who are themselves unethical).77 How
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If unethical actions are defined as behaviors that fall below minimum standards of morality, the key question becomes, “Whose standards of morality?” Research on business ethics across cul- tures reveals that different countries have different baseline levels of unethical actions. Transpar- ency International is an organization that monitors unethical practices in countries around the world. Using data from businesspeople, risk analysts, investigative journalists, country experts, and public citizens, the organization rates countries on a scale of 1 (unethical) to 10 (ethical). Here are some of the scores from the 1999 version of the rankings:
OB INTERNATIONALLY
SCORE COUNTRY SCORE COUNTRY
10.0 Denmark 3.8 South Korea
9.8 Finland 3.6 Turkey
9.4 Sweden 3.4 China
9.2 Canada 3.4 Mexico
8.7 Australia 3.2 Thailand
8.6 Germany 3.0 Argentina
7.7 Hong Kong 2.9 Colombia
7.7 Ireland 2.9 India
7.5 United States 2.6 Ukraine
6.8 Israel 2.6 Venezuela
6.6 France 2.6 Vietnam
6.0 Japan 2.4 Russia
4.9 Greece 1.6 Nigeria
4.7 Italy 1.5 Cameroon
These rankings reveal the challenges involved for any multinational corporation that does busi- ness in areas at the top and bottom of the rankings. Should the company have the same ethical expectations for employees in all countries, regardless of ethical norms? For now, that seems to be the most common position. For example, the Coca-Cola Company’s Code of Business Conduct “applies to all the Company’s business worldwide and to all Company employees.” The code is given to all employees and covers topics such as conflicts of interest, dealing with government officials, customer and supplier interactions, and political contributions. The code also describes the disciplinary actions associated with any violations of the code.
Source: D. C. Robertson, “Business Ethics Across Cultures,” in The Blackwell Handbook of Cross-Cultural Management, ed. M.J. Gannon and K.L. Newman (Malden, MA: Blackwell, 2002), pp. 361–92.
prevalent are such behaviors? Recent surveys suggest that 76 percent of employees have observed illegal or unethical conduct in their organizations within the past 12 months.78 Those base rates may be even higher in some countries, as described in our OB Internationally feature.
Other studies focus on what might be termed “merely ethical” behavior—behavior that adheres to some minimally accepted standard of morality.79 Merely ethical behaviors might include obeying
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labor laws and complying with formal rules and contracts. Still other studies focus on what could be called “especially ethical” behaviors—behaviors that exceed some minimally accepted stan- dard of morality. Especially ethical behaviors might include charitable giving or whistle-blowing, which occurs when former or current employees expose illegal or immoral actions by their organi- zation.80 Whistle-blowing can be viewed as especially ethical because whistle-blowers risk potential retaliation by other members of the organization, especially when whistle-blowers lack status and power.81 Ironically, the company often winds up benefitting from that risk taking, as whistle-blowing can bring significant improvements to the ethical culture in an organization over the long term.82
Why do some authorities behave unethically while others engage in ethical (or especially ethi- cal) behaviors? One set of answers can be derived from research in social psychology. The four- component model of ethical decision making argues that ethical behaviors result from a multistage sequence beginning with moral awareness, continuing on to moral judgment, then to moral intent, and ultimately to ethical behavior.83 Figure 7-6 presents an adaptation of this model. In addition to depicting the four components, the figure illustrates that unethical behavior can be triggered by characteristics of a person or the situation.84 Put differently, and drawing on the adage “one bad apple can spoil the barrel,” ethical behavior can be driven by both good versus bad apples and good versus bad barrels.85 The sections that follow review the components of this model in more detail.
MORAL AWARENESS The first step needed to explain why an authority acts ethically is moral awareness, which occurs when an authority recognizes that a moral issue exists in a situation or that an ethical code or principle is relevant to the circumstance.86 Ethical issues rarely come equipped with “red flags” that mark them as morally sensitive.87 Sometimes authorities act unethi- cally simply because they don’t perceive that moral issues are relevant in a given situation, so the ethical merits of certain actions are never debated. For example, let’s say you own a clothing retailer that specializes in fashion-forward styles at low prices. You know that Diane von Furst- enberg’s styles are hot this year, and your buying team just discovered a vendor that makes cheap knockoffs of those styles. Do you buy clothes from that vendor and hang them on your racks?
Is there an ethical issue at play here? On the one hand, you might be tempted to say that imi- tation is the way that fashion trends spread—that the “gurus of style” expect their products to be
7.5 What is the four-component model of ethical decision making?
FIGURE 7-6 The Four-Component Model of Ethical Decision Making
Situational Factors (Good vs. Bad Barrels)
Individual Factors (Good vs. Bad Apples)
Ethical Behavior
Moral Intent
Moral Judgment
Moral Awareness
Photos: (top): ©Siede Preis/Getty Images; (bottom): ©C Squared Studios/Getty Images. Text Source: Adapted from J.R. Rest, Moral Development: Advances in Research and Theory (New York: Praeger, 1986).
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copied. Besides, a skirt is a skirt, and knockoffs are part of the game in a lot of businesses. On the other hand, Diane von Furstenberg’s styles are her intellectual property, and the people who work for her label put a great deal of time, effort, and talent into their clothes. It turns out this scenario has played out with Forever 21, the Los Angeles–based specialty retailer.88 More than 50 labels have sued Forever 21 for copying their clothes, including Diane von Furstenberg, Anna Sui, and Anthropologie. “Their design is swathed in mystery,” notes one expert on copyright law. “But it probably looks a bit like a crime scene, with the chalk outline of the garments they’re copy- ing.”89 Such charges are difficult to prove because U.S. copyright law protects original prints and graphics, not actual designs. Forever 21 wound up settling those lawsuits, noting that the company ultimately has to trust the integrity of its clothing vendors. Indeed, one executive notes that she chooses from among 400 items a day, spending only about 90 seconds to review a piece.
Moral awareness depends in part on characteristics of the issue itself, as some issues have more built-in ethical salience than others. A concept called moral intensity captures the degree to which an issue has ethical urgency.90 As described in Table 7-3, moral intensity is driven by two general concerns, both of which have more specific facets.91 First and foremost, a particular issue is high in moral intensity if the potential for harm is perceived to be high. An act that could injure 1,000 people is more morally intense than an act that could injure 10 people, and an act that could result in death is more morally intense than an act that could result in illness.92 Second, a particular issue is high in moral intensity if there is social pressure surrounding it. An act that violates a clear social norm is more morally intense than an act that seems similar to what everyone else is doing. In the case of Forever 21, moral intensity might seem low because selling cheap knockoffs benefits its customers, and interactions with customers are much more common and salient than interactions with designers.
Moral awareness also depends on the way authorities observe and perceive the events that happen around them. A concept called moral attentiveness captures the degree to which people
TABLE 7-3 The Dimensions of Moral Intensity
GENERAL DIMENSION SPECIFIC FACET DESCRIPTION
Potential for harm Magnitude of consequences How much harm would be done to other people?
Probability of effect How likely is it that the act will actually occur and that the assumed conse- quences will match predictions?
Temporal immediacy How much time will pass between the act and the onset of its consequences?
Concentration of effect Will the consequences be concen- trated on a limited set of people, or will they be more far reaching?
Social pressure Social consensus How much agreement is there that the proposed act would be unethical?
Proximity How near (in a psychological or physi- cal sense) is the authority to those who will be affected?
Sources: Adapted from T.M. Jones, “Ethical Decision Making by Individuals in Organizations: An Issue-Contingent Model,” Academy of Management Review 16 (1991), pp. 366–95; and A. Singhapakdi, S.J. Vitell, and K.L. Kraft, “Moral Intensity and Ethical Decision-Making of Marketing Professionals,” Journal of Business Research 36 (1996), pp. 245–55.
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chronically perceive and consider issues of morality during their experiences.93 Research in cog- nitive psychology shows that people pay more attention to stimuli that are significant, vivid, and recognizable. Authorities who are morally attentive tend to view the world through a lens of morality, giving ethical issues a particular significance, vividness, and recognizability. That lens colors the way they identify and interpret information and also shapes the way they analyze and reflect on it. Morally attentive people are likely to report that they face several ethical dilemmas in a typical day, that many of the decisions they face have ethical consequences, that they regu- larly think about issues of morality, and that they enjoy pondering moral issues. In the case of Forever 21, it may be that top management was not morally attentive enough to recognize that buying copies of more expensive designs represented an ethical issue. That premise may make some sense, given that Forever 21 has had other ethical struggles. It has settled multiple lawsuits with garment workers’ groups alleging unfair business practices and wage violations. The com- pany claims it didn’t know about the conditions in its suppliers’ factories, but lawyers maintain that the company squeezes suppliers so much on price that they are partially responsible for the violations.
Some business schools are taking an unusual approach to increasing moral awareness on the part of their students. New York University, the University of California at Berkeley, Purdue, and Penn State have invited convicted white-collar criminals to speak to students about their unethical actions, as well as the consequences of those actions.94 For example, Walter Pavlo Jr. earns up to $2,500 a visit to detail the $6 million money-laundering scheme he perpetrated at MCI. The 40-year-old served two years in federal prison and is now divorced, unemployed, and living with his parents. Such testimonials can highlight the potential harm involved in unethical actions while also making students a bit more attentive to ethical issues. Although some professors consider the payment of convicted felons to be an ethical issue in its own right, part of what Pavlo earns goes to make restitution for his crimes. One professor at Penn State summarizes, “Here’s a real person telling students what happened to his life. I don’t think there’s any substitute for that.”95
MORAL JUDGMENT Some authorities may recognize that a moral issue exists in a given situ- ation but then be unable to determine whether a given course of action is right or wrong. The second step needed to explain why an authority acts ethically is therefore moral judgment, which reflects the process people use to determine whether a particular course of action is ethical or
Forever 21, a Los Angeles–based specialty retailer, has been sued by
more than 50 labels for allegedly stealing their
designs in order to sell sig- nificantly cheaper versions
to its customers.
©Robert Marquardt/Getty Images
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unethical.96 One of the most important factors influencing moral judgment is described in Kohl- berg’s theory of cognitive moral development.97 This theory argues that as people age and mature, they move through various stages of moral development—each more mature and sophisticated than the prior one. All else equal, authorities who operate at more mature stages of moral develop- ment should demonstrate better moral judgment. You might wonder how the moral development of a person can be measured. One approach is to give people a series of ethical dilemmas like the one in Table 7-4, then ask questions to gain insights into their decision-making process.98
According to Kohlberg, people begin their moral development at the preconventional stage.99 At this stage, right versus wrong is viewed in terms of the consequences of various actions for the individual. For example, children seek to avoid punishment for its own sake, regardless of any con- cern about moral order. Similarly, children obey adults for its own sake, regardless of the respect or wisdom shown by those adults. Over time, the desire to obtain pleasure and avoid pain expands to the formation of “you scratch my back, I’ll scratch yours” sort of exchanges. Such relationships remain self-interested however, with little concern for loyalty, gratitude, or fairness. In the case of the ethical dilemma in Table 7-4, viewing question 1 as one of the most important issues would signal preconventional thinking.
As people mature, their moral judgment reaches the conventional stage.100 At this stage, right versus wrong is referenced to the expectations of one’s family and one’s society. At first, people seek the approval of friends and family members, conforming to stereotypes about what’s right. Question 2 in Table 7-4 reflects this sort of priority. Over time, people come to emphasize the laws, rules, and orders that govern society. Concepts such as doing one’s duty and maintaining the social order come to be valued for their own sakes. Question 3 reflects this level of moral sophis- tication. Research suggests that most adults find themselves at the conventional stage.101 That positioning is relevant to organizations because it shows that moral judgment can be influenced by organizational policies, practices, and norms.
The most sophisticated moral thinkers reach the principled (or postconventional) stage.102 At this stage, right versus wrong is referenced to a set of defined, established moral principles. Research suggests that fewer than 20 percent of Americans reach this principled stage.103 Philoso- phers have identified a number of moral principles that serve as prescriptive guides for making moral judgments, with some of the most influential shown in Table 7-5. Rather than viewing a
TABLE 7-4 Ethical Dilemma Used to Assess Moral Development
Chris is an accountant who is in charge of creating budget projections for all of the depart- ments in the company. Chris’s job is to draw on both data from the past and potential changes in the future to create those projections. The projections then decide how much money department heads can spend during the fiscal year. After creating and releasing the projec- tions for this year, Chris noticed an error in the calculations. Although the error is not large, it is not insignificant either. And it will result in departments having less money to spend than they really should. No one else has noticed the error and it is very unlikely that anyone will, given who has access to the information. Should Chris come forward and admit the error?
On a scale from 1 = No Importance to 5 = Great Importance, rate how important each of the following questions are to your decision: 1. Could Chris receive a harsher punishment if the company finds the mistake without his/her
help? 2. Whether Chris’s subordinates and peers would lose faith in Chris if Chris is caught instead of
reporting the mistake himself/herself. 3. Whether or not company policy ought to be respected by all employees. 4. Would reporting the mistake do any good for Chris or society? 5. What values Chris has set for himself/herself in his/her personal code of behavior.
Source: Adapted from Greg Loviscky, “Assessing Managers’ Ethical Decision-Making: An Objective Measure of Manage- rial Moral Judgment,” Journal of Business Ethics, Vol. 73. 2007, Springer Netherlands.
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TABLE 7-5 Moral Principles Used in the Principled Stage
TYPE OF PRINCIPLE SPECIFIC PRINCIPLE DESCRIPTION (AND CONTRIBUTORS)
Consequentialist Utilitarianism An act is morally right if it results in the great- est amount of good for the greatest number of people—sometimes termed the “greatest happiness principle” (Jeremy Bentham, John Stuart Mill).
Egoism An act is morally right if the decision maker freely decides to pursue either short-term or long-term interests. Markets are purported to limit the degree to which one egoist’s inter- ests harm the interests of another (Adam Smith).
Nonconsequentialist Ethics of duties An act is morally right if it fulfills the “cat- egorical imperative”—an unambiguously explicit set of three crucial maxims: (a) the act should be performable by everyone with no harm to society; (b) the act should respect human dignity; (c) the act should be endors- able by others (Immanuel Kant).
Ethics of rights An act is morally right if it respects the natural rights of others, such as the right to life, liberty, justice, expression, association, consent, privacy, and education (John Locke, John Rawls).
Virtue ethics An act is morally right if it allows the deci- sion maker to lead a “good life” by adhering to virtues like wisdom, honesty, courage, friendship, mercy, loyalty, modesty, and patience (Aristotle).
Source: Adapted from A. Crane and D. Matten, Business Ethics (New York: Oxford University Press, 2007).
given principle as the single, best lens for making decisions, it’s better to view the principles as a prism for shedding light on a given situation from a number of different angles.104 The consequen- tialist principles in Table 7-5 judge the morality of an action according to its goals, aims, or out- comes (these principles are sometimes termed “teleological,” after the Greek word for “goal”).105 Question 4 in Table 7-4 reflects these sorts of concerns. The nonconsequentialist principles judge the morality of an action solely on its intrinsic desirability (these principles are sometimes termed “deontological,” after the Greek word for “duty,” or “formalist,” due to their emphasis on formal- ized codes and standards). Viewing question 5 as one of the most important issues in the dilemma would signal nonconsequentialist thinking.
Returning to the Forever 21 example, a utilitarian analysis would focus on whether the “great- est happiness” was created by giving their customers access to cutting-edge designs at cheap prices, even if doing so harmed the profitability of the labels. An egoistic analysis would focus on whether buying “copycat” clothes from vendors boosted the short-term and long-term interests of the company. Is selling those clothes vital to the company’s mission, or are the risks to the reputa- tion and brand of the company severe enough that a change in course is warranted? Although the takeaways from those analyses may be debatable, the judgment of the three remaining principles
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seems clearer. From the perspective of the ethics of duties, society would clearly be harmed if all companies copied the intellectual property of their competitors, though some customers would likely endorse the company’s practices. From an ethics of rights perspective, Forever 21’s actions can be viewed as disrespecting the designers’ rights to consent and expression (and justice, given that they were offered no compensation for the use of their intellectual property). Finally, an analysis using virtue ethics would suggest that Forever 21’s actions lacked the virtue of honesty.
MORAL INTENT Assuming that an authority recognizes that a moral issue exists in a situation and possesses the cognitive moral development to choose the right course of action, one step remains: The authority has to want to act ethically. Moral intent reflects an authority’s degree of commitment to the moral course of action.106 The distinction between awareness or judgment on the one hand and intent on the other is important, because many unethical people know and understand that what they’re doing is wrong—they just choose to do it anyway. Why? Sometimes situational factors encourage people to go against their moral convictions. For example, organiza- tions may possess unethical cultures, where violations of moral codes become the rule rather than the exception (see Chapter 16 on organizational culture for more discussion of such issues).107 As another example, economic pressures from assigned goals or specific incentives can encourage people to set aside their moral judgment, at least for a time.108
What explains the ability of some people to resist situational pressures and stay true to their moral judgment? One factor is moral identity—the degree to which a person self-identifies as a moral person.109 Our self-concepts have a number of components to them: We may define our- selves by what we do, where we come from, what our family status is, or what cultural or ethnic groups we belong to. People with strong moral identities define themselves as compassionate, generous, honest, kind, fair, and hardworking. Their emotional well-being and sense of self is wrapped up in living up to those virtues. Moreover, the actions they take in their daily life—from the things they buy, to the hobbies they have, to the groups they join—are viewed as symbols of those virtues. Research suggests that people with strong moral identities volunteer more for charitable work and donate more to charity drives.110 Research also suggests that moral iden- tity “moderates” the effects of moral judgment on ethical behavior. Recall that in the language of theory diagrams, moderators affect the strength of the relationship between two variables. For example, one study shows that managers who emphasize specific ethics principles are less likely to engage in unethical behaviors (e.g., calling in sick to take a day off, ignoring others’ unethical actions), but only when they define themselves as a moral person.111 When morality is not an important piece of their identity, their moral principles have no relation- ship with their actual behavior. For an example of low moral identity in the fast food industry, see our OB on Screen feature.
SUMMARY Taken together, the stages of the four-component model can be used to explain why authorities act in an ethical or unethical manner. When authorities are morally aware, when they have sophisticated moral judgment, and when they possess strong moral intent, chances are their actions will tend to be ethical. By extension, those authorities should attend more to the rules of distributive, procedural, interpersonal, and informational justice, because treating employees fairly is itself an ethical act.112 Those authorities should also be viewed as trustworthy, in that moral awareness, judgment, and intent should result in higher levels of both benevolence and integrity.
S U M M A RY: W H Y A R E S O M E AU T H O R I T I E S M O R E T R U ST E D T H A N OT H E R S ? So what explains why some authorities are more trusted than others? As shown in Figure 7-7, answering that question requires understanding the different sources in which trust can be rooted, including dispositions, cognitions, and affect. Disposition-based trust is rooted in an individual’s trust propensity, whereas affect-based trust is rooted in a fondness for the authority. Cognition-based trust is driven by perceptions of trustworthiness, as employees attempt to assess the ability, benevolence, and integrity of authorities. Unfortunately, it’s often difficult to gauge
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OB ON SCREEN THE FOUNDER
Mac, I’m the President and CEO of a major corporation with land holdings in 17 states. You run a burger stand in the desert.
With those words, Ray Kroc (Michael Keaton) seizes control of McDonald’s from Mac and Dick McDonald (John Carroll Lynch and Nick Offerman) in The Founder (Dir. John Lee Hancock, Film- nation, 2016). Ray had been in the restaurant supply business when two brothers in California placed an unusually large order. When he visited their burger stand, he was instantly awed by the “speedy system” they’d created. A perfectly engineered process where a fresh hamburger gets a few squirts of mustard and ketchup, two pickles, and some diced onions—all within 30 seconds of ordering. Through sheer force of personality, Ray convinced the McDonald brothers to make him head of franchising.
As Ray led the expansion of the chain in the Midwest, he became increasingly bothered by Mac and Dick’s resistance to new ideas. For example, Ray wanted to use a powdered mix for the milkshakes to save money, but the brothers were resolute in maintaining their high standards. Ray had little recourse because the contract he signed gave the brothers full control over restaurant- related decisions. It was then that an advisor of Ray’s gave him an idea: he could start a separate company that would control the land upon which new locations would operate. The franchisees would lease the land from him, giving him a separate revenue stream (and more leverage).
Eventually Ray became powerful enough that he violated the terms of his contract with Mac and Dick, noting “Contracts are like hearts . . . they’re made to be broken.” Such moves revealed Ray as having less of a moral identity than Mac or Dick. They were driven by doing “the right thing” for their vision and their customers. Ray was not. When Mac lashed out to say that they had invented the things that made McDonald’s great, not him, Ray corrected: “You know what I came up with Mac? I came up with the concept of winning. . . . If my competitor were drowning, I’d walk over and put a hose right in his mouth. Can you say the same?”
Source: Dir. John Lee Hancock, “The Founder” Filmnation, 2016
©Entertainment Pictures/Alamy
trustworthiness accurately, so employees instead look to more observable behaviors that can be used as indirect evidence of trustworthiness. Those behaviors may center on the justice of authori- ties, with employees considering the distributive, procedural, interpersonal, and informational justice they have experienced at work. The justice and general trustworthiness of authorities in turn can be explained by authorities’ own moral awareness, moral judgment, and moral intent.
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FIGURE 7-7 Why Are Some Authorities More Trusted Than Others?
Trust
Ability
Benevolence
Integrity
Trust Propensity
Feelings toward Trustee
Trustworthiness
Distributive Justice
Procedural Justice
Interpersonal Justice
Informational Justice
Justice
Moral Awareness
Moral Judgment
Moral Intent
Ethical Behavior
Ethics
H O W I M P O R TA N T I S T R U S T ?
Does trust have a significant impact on the two primary outcomes in our integrative model of OB—does it correlate with job performance and organizational commitment? Figure 7-8 summarizes the research evidence linking trust to job performance and organizational commit- ment. The figure reveals that trust does affect job performance. Why? One reason is that trust is moderately correlated with task performance. A study of employees in eight plants of a tool manu- facturing company sheds some light on why trust benefits task performance.113 The study gave employees survey measures of their trust in two different authorities: their plant’s manager and the company’s top management team. Both trust measures were significant predictors of employees’
7.6 How does trust affect job performance and organiza- tional commitment?
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ability to focus, which reflects the degree to which employees can devote their attention to work, as opposed to “covering their backside,” “playing politics,” and “keeping an eye on the boss.” The ability to focus is clearly vital to task performance in many jobs, particularly when job duties become more complex.
Trust also influences citizenship behavior and counterproductive behavior. Why? One reason is that the willingness to accept vulnerability changes the nature of the employee–employer rela- tionship. Employees who don’t trust their authorities have economic exchange relationships that are based on narrowly defined, quid pro quo obligations that are specified in advance and have an explicit repayment schedule.114 Economic exchanges are impersonal and resemble contractual agreements, such that employees agree to fulfill the duties in their job description in exchange for financial compensation. As trust increases, social exchange relationships develop that are based on vaguely defined obligations that are open-ended and long term in their repayment sched- ule.115 Social exchanges are characterized by mutual investment, such that employees agree to go above and beyond their duties in exchange for fair and proper treatment by authorities. In social exchange contexts, employees are willing to engage in beneficial behaviors because they trust that those efforts will eventually be rewarded (see Chapter 3 on organizational commitment for more discussion of such issues).
Figure 7-8 also reveals that trust affects organizational commitment. Why? One reason is that trusting an authority increases the likelihood that an emotional bond will develop,116 particularly if that trust is rooted in positive feelings for the authority. Trusting an authority also makes it more likely that a sense of obligation will develop, because employees feel more confident that the
FIGURE 7-8 Effects of Trust on Performance and Commitment
Trust has a moderate positive e�ect on Performance. Employees who are willing to be vulnerable to authorities tend to have higher levels of Task Performance. They are also more likely to engage in Citizenship Behavior and less likely to engage in Counterproductive Behavior.
Trust has a strong positive e�ect on Commitment. Employees who are willing to be vulnerable to authorities tend to have higher levels of A�ective Commitment and higher levels of Normative Commitment. Trust has no e�ect on Continuance Commitment.
Job Performance
Trust
Organizational Commitment
Trust
Represents a strong correlation (around .50 in magnitude).
Represents a moderate correlation (around .30 in magnitude).
Represents a weak correlation (around .10 in magnitude).
Sources: K.T. Dirks and D.L. Ferrin, “Trust in Leadership: Meta-Analytic Findings and Implications for Research and Practice,” Journal of Applied Psychology 87 (2002), pp. 611–28; and J.A. Colquitt, B.A. Scott, and J.A. LePine, “Trust, Trustworthiness, and Trust Propensity: A Meta-Analytic Test of Their Unique Relationships with Risk Taking and Job Performance,” Journal of Applied Psychology 92 (2007), pp. 909–27.
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authority deserves that obligation. When negative events occur, employees who trust the authority are willing to accept the vulnerability that comes with continued employment,117 remaining confi- dent in their belief that the situation will eventually improve.
A P P L I C AT I O N : S O C I A L R E S P O N S I B I L I T Y
Now that you understand the factors that drive trust in authorities and the importance of trust lev- els to performance and commitment, we turn our attention to a very practical question: “How can organizations become more trustworthy?” Certainly that’s a big question with no single answer. However, one strategy is to focus the organization’s attention on corporate social responsibility, a perspective that acknowledges that the responsibilities of a business encompass the economic, legal, ethical, and citizenship expectations of society.118 This perspective maintains the belief that the foundation of any business is profitability, because organizations must fulfill their economic responsibilities to their employees and their shareholders. However, the social responsibility lens supplements that belief by arguing that the company’s obligations do not end with profit maximization.
The legal component of corporate social responsibility argues that the law represents soci- ety’s codification of right and wrong and must therefore be followed.119 Fulfilling this component speaks to the integrity of the organization and suggests that it has reached the conventional level of moral development. Further violations of intellectual property or labor laws on Forever 21’s part would signal a breach of this component, so protecting its reputation will likely require an emphasis on the origins of vendors’ designs and a monitoring of their factory conditions. Many organizations turn to compliance officers to police the legality of their operations. For example, Computer Associates International, a New York–based maker of computer security software, recently installed a new compliance officer.120 As part of a series of reforms to avoid a trial over accounting fraud, the company gave its new officer, who was a former chief trial attorney for the U.S. Navy, unprecedented power. The officer has direct access to the CEO, can go over the CEO’s head if need be, and has the authority to fire managers and employees who violate company guidelines.
The ethical component of corporate social responsibility argues that organizations have an obligation to do what is right, just, and fair and to avoid harm.121 Fulfilling this component is relevant to the benevolence and integrity of the organization and suggests that it has reached the principled level of moral development.122 Regardless of its legal implications, the way Forever 21 manages its relationships with its vendors speaks to the ethical makeup of its culture. What can organizations do to improve that ethical makeup? J.M. Smuckers, the Orrville, Ohio–based food and beverage maker, requires all of its 3,500 employees to attend training sessions on moral awareness and moral judgment. Employees go through programs every 3–5 years and sign a nine- page ethics statement annually. That statement, which the company treats as a living document, spells out the codes and principles that Smuckers employees can use to navigate moral dilemmas.
The citizenship component of corporate social responsibility argues that organizations should contribute resources to improve the quality of life in the communities in which they work.123 Sometimes this component involves philanthropic efforts, in which donations of time or cash are given to charitable groups. At Home Depot, for example, 50,000 of its 325,000 employees donated a total of 2 million hours to community groups in a single year.124 The citizenship com- ponent may also involve efforts geared toward environmental sustainability. On that front, a num- ber of notable companies, from Nike to Walmart to General Electric, have focused on adopting “green” manufacturing processes.125 Walmart has taken steps to reduce waste and inefficiency, an important goal given that the company is the nation’s largest private user of electricity.126 General Electric issues an annual “citizenship report” to highlight several aspects of its corporate social responsibility, from increases in volunteer hours to efforts to reduce air pollution.127
7.7 What steps can organiza- tions take to become more trustworthy?
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K E Y T E R M S
• Reputation p. 196 • Trust p. 196 • Justice p. 197 • Ethics p. 197 • Disposition-based trust p. 197 • Cognition-based trust p. 197 • Affect-based trust p. 197 • Trust propensity p. 197 • Trustworthiness p. 199
• Ability p. 200 • Benevolence p. 200 • Integrity p. 201 • Distributive justice p. 203 • Procedural justice p. 204 • Interpersonal justice p. 206 • Abusive supervision p. 206 • Informational justice p. 207 • Whistle-blowing p. 210
7.1 Trust is the willingness to be vulnerable to an authority based on positive expectations about the authority’s actions and intentions. Justice reflects the perceived fairness of an author- ity’s decision making and can be used to explain why employees judge some authorities as more trustworthy than others. Ethics reflects the degree to which the behaviors of an authority are in accordance with generally accepted moral norms and can be used to explain why authorities choose to act in a trustworthy manner.
7.2 Trust can be disposition-based, meaning that one’s personality includes a general propensity to trust others. Trust can also be cognition-based, meaning that it’s rooted in a rational assessment of the authority’s trustworthiness. Finally, trust can be affect-based, meaning that it’s rooted in feelings toward the authority that go beyond any rational assessment of trustworthiness.
7.3 Trustworthiness is judged along three dimensions. Ability reflects the skills, competencies, and areas of expertise that an authority possesses. Benevolence is the degree to which an authority wants to do good for the trustor, apart from any selfish or profit-centered motives. Integrity is the degree to which an authority adheres to a set of values and principles that the trustor finds acceptable.
7.4 The fairness of an authority’s decision making can be judged along four dimensions. Distrib- utive justice reflects the perceived fairness of decision-making outcomes. Procedural justice reflects the perceived fairness of decision-making processes. Interpersonal justice reflects the perceived fairness of the treatment received by employees from authorities. Informa- tional justice reflects the perceived fairness of the communications provided to employees from authorities.
7.5 The four-component model of ethical decision making argues that ethical behavior depends on three concepts. Moral awareness reflects whether an authority recognizes that a moral issue exists in a situation. Moral judgment reflects whether the authority can accurately identify the “right” course of action. Moral intent reflects an authority’s degree of commit- ment to the moral course of action.
7.6 Trust has a moderate positive relationship with job performance and a strong positive rela- tionship with organizational commitment.
7.7 Organizations can become more trustworthy by emphasizing corporate social responsibility, a perspective that acknowledges that the responsibilities of a business encompass the eco- nomic, legal, ethical, and citizenship expectations of society.
TA K E AWAY S
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7.1 Which would be more damaging in organizational life—being too trusting or not being trust- ing enough? Why do you feel that way?
7.2 Consider the three dimensions of trustworthiness (ability, benevolence, and integrity). Which of those dimensions would be most important when deciding whether to trust your boss? What about when deciding whether to trust a friend? If your two answers differ, why do they?
7.3 Putting yourself in the shoes of a manager, which of the four justice dimensions (distribu- tive, procedural, interpersonal, informational) would you find most difficult to maximize? Which would be the easiest to maximize?
7.4 Which component of ethical decision making do you believe best explains student cheating: moral awareness, moral judgment, or moral intent? Why do you feel that way?
7.5 Assume you were applying for a job at a company known for its corporate social responsibil- ity. How important would that be to you when deciding whether to accept a job offer?
D I S C U S S I O N Q U E S T I O N S
• Four-component model p. 210 • Moral awareness p. 210 • Moral intensity p. 211 • Moral attentiveness p. 211 • Moral judgment p. 212 • Cognitive moral development p. 213 • Moral principles p. 213
• Moral intent p. 215 • Moral identity p. 215 • Ability to focus p. 218 • Economic exchange p. 218 • Social exchange p. 218 • Corporate social responsibility p. 219
As is often the case with large companies, SeaWorld’s responses to its ethical crises have been shaped, in part, by negotiations with government representatives. Before Manby was brought in, the company had been investigating a concept called BlueWorld: 50-feet-deep orca tanks with simulated currents that would allow whales to swim against moving water. The California Coastal Commission had approved the BlueWorld plan, but under the following stipulation: SeaWorld could no longer breed orcas. Once its 11 California orcas were no more, BlueWorld would have no occupants for its tanks.
As the company moved on from BlueWorld, a former congressman (and former cochair of the animal welfare caucus) helped connect Manby with Wayne Pacelle—the CEO of the Humane Society. Once the two men got past the initial awkwardness of their exchanges, they began communicating regularly. Eventually, Manby brought Pacelle to SeaWorld—his first ever trip to the park. There Pacelle was impressed by the rescue work that SeaWorld did. “People who work there love animals; appreciation of animals is a big part of their enterprise,” he noted. “If you sit down, look at the other person, and see the complexity; you find you have more common ground than you might have imagined when lobbing cannonballs.” Indeed, Manby and Pacelle announced an initiative to fight shark finning—a practice that kills 75 million sharks a year.
Other negotiations involved John Reilly—the former president of SeaWorld San Diego and now the company’s COO—and Richard Bloom—a California assemblyman. Bloom was in the process of authoring a bill that would have outlawed captivity, which would have dealt a fatal
C A S E : S E AW O R L D
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E X E R C I S E : U N E T H I C A L B E H AV I O R
The purpose of this exercise is to explore how authorities can prevent unethical behaviors on the part of their employees. This exercise uses groups, so your instructor will either assign you to a group or ask you to create your own group. The exercise has the following steps:
7.1 Read the following scenario:
Alex Grant recently graduated from college and is excited to be starting his first job as a store manager for The Grocery Cart, a large supermarket chain. The company has a very good management training program, and it is one of the fastest growing chains in the nation. If Alex does well managing his first store, there are a number of promising advancement opportunities in the company. After completing the store management training program, Alex met with Regina Hill, his area supervisor. She informed Alex that he would be taking charge of a medium-volume store ($250,000 in sales/week) in an upper-class neighborhood. This store had been operating without a store manager for the past six months. The store had also not made a profit in any of the monthly financial reports for the last year.
Hill also shared the following information with Alex: Because the store has been without a store manager for the last six months, the assistant manager (Drew Smith) has been in charge. Drew is known for being highly competent and a solid performer. However, there have been complaints that he is frequently rude to employees and insults and ridicules them whenever they make mistakes. Turnover among sales clerks and cashiers at this store has been somewhat higher than in other stores in the area. The average pay of clerks and cashiers is $7.25/hour. The last two semiannual inventories at this store showed significant losses. There has been a large amount of theft from the store stockroom (an area where only employees are allowed). Given that the store has generally done well in sales (compared with others in the area) and that most expenses seem well under control, Hill believes that the profitability problem for this store is primarily due to theft. Therefore, she suggested that Alex’s plans for the store should focus on this priority over any others.
blow to SeaWorld. Reilly, Manby, and Bloom worked out a compromise, resulting in the Orca Protection Act. Not only would orca breeding be banned, but all theatrical shows using orcas would be phased out. They would be replaced by so-called “encounters” with orcas in more natural-looking environments. Of course, no one knows what the future may bring, in terms of either activist or government pressure. After all, SeaWorld will continue to do theatrical dolphin and sea lion shows and continues to keep animals in captivity. When a company “moves the line” in an area of its business that is ethically murky, it can be difficult to decide where that line should be repositioned.
7.1 In terms of the four-component model, what effect did Blackfish seem to have on the public, as it altered its views of SeaWorld’s theatrical orca shows?
7.2 If you consider the various moral principles described in Table 7-5, is there support for end- ing theatrical orca shows but not ending theatrical dolphin or sea lion shows?
7.3 Activist groups like PETA exist, in part, to force companies to become more ethical in their practices. Looking back across decades, has that seemed to happen? What role does (or should) government play in such evolutions?
Source: E. Fry, “Swimming Upstream: Can a Bible-Studying, Love-Peddling Showman Save SeaWorld. . .from Itself?” Fortune, September 15, 2016.
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7.1 Rindova, V.P.; I.O. Wil- liamson; A.P. Petkova; and J.M. Sever. “Being Good or Being Known: An Empirical Examina- tion of the Dimensions, Antecedents, and Consequences of Organizational Reputa- tion.” Academy of Management Journal 48 (2005), pp. 1033–49.
7.2 Frauenheim, E. “Does Reputation Matter?” Workforce Management, November 20, 2006, pp. 22–26.
7.3 Ibid.
7.4 Mayer, R.C.; J.H. Davis; and F.D. Schoorman. “An Integrative Model of Organizational Trust.” Academy of
Management Review 20 (1995), pp. 709–34; and Rousseau, D.M.; S.B. Sitkin; R.S. Burt; and C. Camerer. “Not So Different After All: A Cross-Discipline View of Trust.” Acad- emy of Management Review 23 (1998), pp. 393–404.
E N D N OT E S
7.2 As a manager, what steps should Alex take to reduce employee theft? Come up with a list of three ideas. Elect a group member to write the group’s three ideas on the board or on a transparency.
7.3 Now read the following scenario:
When Alex arrived for his first day of work in his new store, he saw that Drew was in the process of terminating an employee (Rudy Johnson) who had been caught stealing. Alex immediately went to the break room of the store where the termination interview was being conducted to learn more about the situation. Drew informed Alex that Rudy had been a grocery clerk for the past six weeks and that he had apparently figured out how to tell if the alarms to the stockroom doors were off. Rudy would then open the back stockroom doors and stack cases of beer outside the store to pick up after his shift. After Drew caught Rudy doing this, Drew had a conversation with one of his friends who works as a restaurant man- ager down the street. Drew’s friend noted that he had hired Rudy a few months ago and that he’d been caught stealing there too.
Turning to Rudy, Drew asked, “So, Rudy, what do you have to say for yourself?” Rudy quickly replied: “Look here, [expletive], you don’t pay me enough to work here and put up with this garbage. In fact, you’re always riding everyone like they’re your personal servant or something. So I was trying to get some beer. I’ve seen you let stockers take home damaged merchandise a dozen times. So just because they cut open a box of cookies, which we all know they do on purpose, they get to take stuff home for free. For that matter, we’ve all seen you do the same thing! I’ve never seen you make a big deal about this stuff before. Why can’t I get a few cases of beer? What’s the big deal?”
7.4 Do these events give you any additional insights into how to decrease employee theft in this store? If so, elect a group member to write an additional one or two reasons in your spot on the board or on your transparency.
7.5 Class discussion (whether in groups or as a class) should center on whether the theft that’s occurring at The Grocery Cart reveals a problem of moral awareness, moral judgment, or moral intent. In addition, does the theft point to a problem with “bad apples,” a “bad barrel,” or both?
Source: Adapted from E.C. Tomlinson, “Teaching the Interactionist Model of Ethics,” Journal of Management Education 33 (2009), pp. 142–65.
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7.5 Kiley, D., and B. Helm. “The Great Trust Offen- sive.” BusinessWeek, September 29, 2008, pp. 38–41.
7.6 Greenberg, J. “A Taxon- omy of Organizational Justice Theories.” Acad- emy of Management Review 12 (1987), pp. 9–22.
7.7 Lind, E.A. “Fairness Heuristic Theory: Justice Judgments as Pivotal Cognitions in Organizational Rela- tions.” In Advances in Organizational Justice, ed. J. Greenberg and R. Cropanzano. Stanford, CA: Stanford Univer- sity Press, 2001, pp. 56–88; Van den Bos, K. “Fairness Heuristic Theory: Assessing the Information to Which People Are Reacting Has a Pivotal Role in Understanding Organizational Justice.” In Theoretical and Cultural Perspectives on Organizational Justice, ed. S. Gilliland, D. Steiner, and D. Skarlicki. Greenwich, CT: Information Age, 2001, pp. 63–84; and Van den Bos, K.; E.A. Lind; and H.A.M. Wilke. “The Psychology of Procedural and Dis- tributive Justice Viewed from the Perspective of Fairness Heuristic Theory.” In Justice in the Workplace, Vol. 2, ed. R. Cropanzano. Mahwah, NJ: Erlbaum, 2001, pp. 49–66.
7.8 Treviño, L.K.; G.R. Weaver; and S.J.
Reynolds. “Behavioral Ethics in Organiza- tions: A Review.” Journal of Management 32 (2006), pp. 951–90.
7.9 McAllister, D.J. “Affect- and Cognition-Based Trust as Foundations for Interpersonal Cooperation in Orga- nizations.” Academy of Management Journal 38 (1995), pp. 24–59.
7.10 Ibid.
7.11 Mayer et al., “An Inte- grative Model”; Rotter, J.B. “A New Scale for the Measurement of Interpersonal Trust.” Journal of Personality 35 (1967), pp. 651–65; Rotter, J.B. “General- ized Expectancies for Interpersonal Trust.” American Psychologist 26 (1971), pp. 443–52; and Rotter, J.B. “Interpersonal Trust, Trustworthiness, and Gullibility.” American Psychologist 35 (1980), pp. 1–7.
7.12 Rosenberg, M. “Mis- anthropy and Political Ideology.” American Sociological Review 21 (1956), pp. 690–95; and Wrightsman Jr., L.S. “Measurement of Philosophies of Human Nature.” Psychological Reports 14 (1964), pp. 743–51.
7.13 Mayer et al., “An Inte- grative Model.”
7.14 Jones, W.H.; L.L. Couch; and S. Scott. “Trust and Betrayal: The Psychology of Get- ting Along and Getting
Ahead.” In Handbook of Personality Psychol- ogy, ed. R. Hogan, J.S. Johnson, and S.R. Briggs. San Diego, CA: Academic Press, 1997, pp. 465–82.
7.15 Source: Stack, L.C. “Trust.” In Dimensional- ity of Personality, ed. H. London and J.E. Exner Jr. New York: Wiley, 1978, pp. 561–99.
7.16 Webb, W.M., and P. Worchel. “Trust and Distrust.” In Psychology of Intergroup Relations, ed. S. Worchel and W.G. Austin. Chicago: Nelson-Hall, 1986, pp. 213–28; and Erickson, E.H. Childhood and Society, 2nd ed. New York: Norton, 1963.
7.17 Stack, “Trust.”
7.18 Mayer et al., “An Inte- grative Model.”
7.19 McAllister, “Affect- and Cognition-Based Trust as Foundations for Interpersonal Coopera- tion in Organizations”; and Lewicki, R.J., and B.B. Bunker. “Develop- ing and Maintaining Trust in Work Rela- tionships.” In Trust in Organizations: Frontiers of Theory and Research, ed. R.M. Kramer and T.R. Tyler. Thousand Oaks, CA: Sage, 1996, pp. 114–39.
7.20 Mayer et al., “An Inte- grative Model.”
7.21 Ibid.; and Gabarro, J.J. “The Development of Trust, Influence, and Expectations.” In Interpersonal Behavior:
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Communication and Understanding in Relationships, ed. G. Athos and J.J. Gabarro. Englewood Cliffs, NJ: Prentice Hall, 1978, pp. 290–303.
7.22 Mayer et al., “An Inte- grative Model.”
7.23 Ibid.
7.24 Source: Marquez, J. “Kindness Pays . . . Or Does It?” Workforce Management, June 25, 2007, pp. 41–49.
7.25 Source: Marquez, J. “Kindness Pays . . . Or Does It?” Workforce Management, June 25, 2007, pp. 41–49.
7.26 Mayer et al., “An Inte- grative Model.”
7.27 Wright, T.A., and J. Goodstein. “Character Is Not ‘Dead’ in Man- agement Research: A Review of Individual Character and Organizational-Level Virtue.” Journal of Man- agement 33 (2007), pp. 928–58; and Gabarro, “The Development of Trust, Influence, and Expectations.”
7.28 Mayer et al., “An Integra- tive Model”; Simons, T. “Behavioral Integrity: The Perceived Align- ment between Managers’ Words and Deeds as a Research Focus.” Organi- zation Science 13 (2002), pp. 18–35; and Dineen, B.R.; R.J. Lewicki; and E.C. Tomlinson. “Supervisory Guidance and Behavioral Integrity: Relationships with
Employee Citizenship and Deviant Behavior.” Journal of Applied Psychology 91 (2006), pp. 622–35.
7.29 Dineen et al., “Super- visory Guidance”; and Bates, S. “Poll: Employees Skeptical about Management Actions.” HR Magazine, June 2002, p. 12.
7.30 Lencioni, P. “The Power of Saying ‘We Blew It.’” Bloomberg Businessweek, February 22, 2010, p. 84.
7.31 Penenberg, A.L. “Doctor Love.” Fast Company, July/August 2010, pp. 78–83, 113.
7.32 Naquin, C. E.; T.R. Kurtzerg; and L.Y. Bel- kin. “The Finer Points of Lying Online: E-mail Versus Pen and Paper.” Journal of Applied Psy- chology 95 (2010), pp. 387–94.
7.33 Stead, D. “. . . And I Invented Velcro.” BusinessWeek, August 4, 2008, p. 15.
7.34 Penenberg, “Doctor Love.”
7.35 McAllister, “Affect- and Cognition-Based Trust”; Lewicki and Bunker, “Developing and Maintaining Trust”; and Lewis, J.D., and A. Weigert. “Trust as a Social Reality.” Social Forces 63 (1985), pp. 967–85.
7.36 McAllister, “Affect- and Cognition-Based Trust.”
7.37 Lind, “Fairness Heuris- tic Theory: Assessing”;
Van den Bos, “Fairness Heuristic Theory: Jus- tice”; and Van den Bos et al., “The Psychology of Procedural and Dis- tributive Justice.”
7.38 Adams, J.S. “Inequity in Social Exchange.” In Advances in Experimen- tal Social Psychology, Vol. 2, ed. L. Berkowitz. New York: Academic Press, 1965, pp. 267–99; and Leventhal, G.S. “The Distribution of Rewards and Resources in Groups and Organi- zations.” In Advances in Experimental Social Psychology, Vol. 9, ed. L. Berkowitz and W. Walster. New York: Academic Press, 1976, pp. 91–131.
7.39 Leventhal, “The Distri- bution of Rewards.”
7.40 Ibid.
7.41 Leventhal, G.S. “What Should Be Done with Equity Theory? New Approaches to the Study of Fairness in Social Relationships.” In Social Exchange: Advances in Theory and Research, ed. K. Ger- gen, M. Greenberg, and R. Willis. New York: Plenum Press, 1980, pp. 27–55; and Thibaut, J., and L. Walker. Procedural Justice: A Psychological Analysis. Hillsdale, NJ: Erlbaum, 1975.
7.42 Folger, R. “Distributive and Procedural Justice: Combined Impact of ‘Voice’ and Improve- ment on Experienced Inequity.” Journal of
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Personality and Social Psychology 35 (1977), pp. 108–19.
7.43 Colquitt, J.A.; D.E. Conlon; M.J. Wesson; C.O.L.H. Porter; and K.Y. Ng. “Justice at the Millennium: A Meta- Analytic Review of 25 Years of Orga- nizational Justice Research.” Journal of Applied Psychology 86 (2001), pp. 425–45.
7.44 Tyler, T.R.; K.A. Rasin- ski; and N. Spodick. “Influence of Voice on Satisfaction with Leaders: Exploring the Meaning of Process Control.” Journal of Personality and Social Psychology 48 (1985), pp. 72–81; Earley, P.C., and E.A. Lind. “Procedural Justice and Participation in Task Selection: The Role of Control in Mediating Justice Judgments.” Journal of Personality and Social Psychology 52 (1987), pp. 1148–60; Lind, E.A.; R. Kanfer; and P.C. Earley. “Voice, Control, and Procedural Justice: Instrumental and Noninstrumental Concerns in Fairness Judgments.” Journal of Personality and Social Psychology 59 (1990), pp. 952–59; and Kors- gaard, M.A., and L. Roberson. “Procedural Justice in Performance Evaluation: The Role of Instrumental and Non- Instrumental Voice in Performance Appraisal Discussions.” Journal of
Management 21 (1995), pp. 657–69.
7.45 Leventhal, “What Should Be Done with Equity Theory?”
7.46 Kolhatkar, S. “Emascu- lation Nation.” Bloom- berg Businessweek, September 17–23, 2012, pp. 102–103.
7.47 Coy, P., and E. Dwoskin. “Short- changed.” Bloomberg Businessweek, June 25– July 1, 2012, pp. 6–7.
7.48 Source: Morris, “How Corporate America Is Betraying Women.” Fortune, January 10, v2005, pp. 64–74
7.49 Hansen, F. “Race and Gender Still Matter.” Workforce Management, September 11, 2006, p. 12.
7.50 Source: Hansen, F. “Merit-Pay Payoff?” Workforce Management, November 3, 2008, pp. 33–39
7.51 Taylor, A., III “No Test Dummies.” Fortune, June 11, 2007, pp. 49–52.
7.52 Leonard, D. “Who’s Afraid of Steve Jobs?” Bloomberg Business- week, July 26–August 1, 2010, pp. 58–63.
7.53 Brockner, J., and B.M. Wiesenfeld. “An Inte- grative Framework for Explaining Reactions to Decisions: Interactive Effects of Outcomes and Procedures.” Psy- chological Bulletin 120 (1996), pp. 189–208.
7.54 Ibid.
7.55 Colquitt et al., “Justice at the Millennium”; and Cohen-Charash, Y., and P.E. Spector. “The Role of Justice in Organizations: A Meta-Analysis.” Organizational Behavior and Human Decision Processes 86 (2001), pp. 278–321.
7.56 Bies, R.J., and J.F. Moag. “Interactional Justice: Communi- cation Criteria of Fairness.” In Research on Negotiations in Organizations, Vol. 1, ed. R.J. Lewicki, B.H. Sheppard, and M.H. Bazerman. Green- wich, CT: JAI Press, 1986, pp. 43–55; and Greenberg, J. “The Social Side of Fairness: Interpersonal and Infor- mational Classes of Organizational Justice.” In Justice in the Work- place: Approaching Fair- ness in Human Resource Management, ed. R. Cropanzano. Hillsdale, NJ: Erlbaum, 1993, pp. 79–103.
7.57 Bies, R.J. “Interactional (In)justice: The Sacred and the Profane.” In Advances in Organi- zational Justice, ed. J. Greenberg and R. Cropanzano. Stanford, CA: Stanford Univer- sity Press, 2001, pp. 85–108.
7.58 Tepper, B.J. “Consequences of Abusive Supervision.” Academy of Manage- ment Journal 43 (2000), pp. 178–90.
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7.59 Schat, A.C.H.; M.R. Frone; and E.K. Kel- loway. “Prevalence of Workplace Aggression in the U.S. Workforce: Findings from a National Study.” In Handbook of Workplace Violence, ed. E.K. Kel- loway, J. Barling, and J.J. Hurrell. Thousand Oaks, CA: Sage, 2006, pp. 47–89.
7.60 Tepper, B.J.; M.K. Duffy; C.A. Henle; and L.S. Lambert. “Proce- dural Injustice, Victim Precipitation, and Abusive Supervision.” Personnel Psychology 28 (2006), pp. 101–23.
7.61 Tepper, B.J. “Abusive Supervision in Work Organizations: Review, Synthesis, and Research Agenda.” Journal of Management 33 (2007), pp. 261–89.
7.62 Mitchell, M.S., and M.L. Ambrose. “Abu- sive Supervision and Workplace Deviance and the Moderating Effects of Negative Reciprocity Beliefs.” Journal of Applied Psy- chology 92 (2007), pp. 1159–68; Tepper, B.J.; C.A. Henle; L.S. Lam- bert; R.A. Giacalone; and M.K. Duffy. “Abu- sive Supervision and Subordinates’ Orga- nizational Deviance.” Journal of Applied Psy- chology 93 (2008), pp. 721–32; and Tepper, B.J.; J.C. Carr; D.M. Breaux; S. Geider; C. Hu; and W. Hua. “Abusive Supervision,
Intentions to Quit, and Employees’ Workplace Deviance: A Power/ Dependence Analy- sis.” Organizational Behavior and Human Decision Processes 109 (2009), pp. 156–67.
7.63 Miner, A.G.; T.M. Glomb; and C. Hulin. “Experience Sampling Mode and Its Corre- lates at Work.” Journal of Occupational and Organizational Psychol- ogy 78 (2005), pp. 171–93.
7.64 Gilliland, S.W.; L. Benson; and D.H. Schepers. “A Rejection Threshold in Justice Evaluations: Effects on Judgment and Decision-Making.” Organizational Behavior and Human Decision Processes 76 (1998), pp. 113–31.
7.65 Hauser, S.G. “The Degeneration.” Work- force Management, January 2011, pp. 16–21.
7.66 Source: Susan G. Hauser, “The Degen- eration of Decorum,” Workforce Management (January 16, 2011), pp. 16–18, 20–21.
7.67 Bies and Moag, “Inter- actional Justice”; and Greenberg, “The Social Side of Fairness.”
7.68 Folger, R., and D.P. Skarlicki. “Fairness as a Dependent Variable: Why Tough Times Can Lead to Bad Manage- ment.” In Justice in the
Workplace: From Theory to Practice, ed. R. Cropanzano. Mahwah, NJ: Erlbaum, 2001, pp. 97–118.
7.69 Marquez, J.; E. Frauen- heim; and M. Schoeff Jr. “Harsh Reality.” Workforce Management, June 22, 2009, pp. 18–23.
7.70 Shaw, J.C.; R.E. Wild; and J.A. Colquitt. “To Justify or Excuse?: A Meta-Analysis of the Effects of Explana- tions.” Journal of Applied Psychology 88 (2003), pp. 444–58.
7.71 Orey, M. “Fear of Firing.” BusinessWeek, April 23, 2007, pp. 52–62.
7.72 Greenberg, J. “Employee Theft as a Reaction to Underpay- ment Inequity: The Hidden Cost of Payc- uts.” Journal of Applied Psychology 75 (1990), pp. 561–68.
7.73 Colquitt et al., “Justice at the Millennium”; and Cohen-Charash and Spector, “The Role of Justice.”
7.74 Treviño et al., “Behav- ioral Ethics”; and Tenbrunsel, A.E., and K. Smith-Crowe. “Ethi- cal Decision Making: Where We’ve Been and Where We’re Going.” Academy of Manage- ment Annals 2 (2008), pp. 545–607.
7.75 Donaldson, T., and T.W. Dunfee. “Toward a Unified Conception
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of Business Ethics: Inte- grative Social Contracts Theory.” Academy of Management Review 19 (1994), pp. 252–84.
7.76 Treviño et al., “Behav- ioral Ethics.”
7.77 Kaptein, M. “Developing a Measure of Unethical Behavior in the Work- place: A Stakeholder Perspective.” Journal of Management 34 (2008), pp. 978–1008.
7.78 Covey, S.M.R. The Speed of Trust: The One Thing That Changes Everything. New York: The Free Press, 2006.
7.79 Treviño et al., “Behav- ioral Ethics.”
7.80 Near, J.P., and M.P. Miceli. “Organizational Dissidence: The Case of Whistle-Blowing.” Journal of Business Eth- ics 4 (1985), pp. 1–16.
7.81 Rehg, M.T.; M.P. Miceli; J.P. Near; and J.R. Van Scotter. “Ante- cedents and Outcomes of Retaliation Against Whistleblowers: Gen- der Differences and Power Relationships.” Organization Science 19 (2008), pp. 221–40.
7.82 Miceli, M.P.; J.P. Near; and T.M. Dworkin. “A Word to the Wise: How Managers and Policy- Makers Can Encourage Employees to Report Wrongdoing.” Journal of Business Ethics 86 (2009), pp. 379–96.
7.83 Rest, J.R. Moral Devel- opment: Advances in Research and Theory. New York: Praeger, 2006.
7.84 Treviño, L.K. “Ethi- cal Decision Making in Organizations: A Person-Situation Interactionist Model.” Academy of Manage- ment Review 11 (1996), pp. 601–17; and Kish- Gephart, J.J.; D.A. Harrison; and L.K. Treviño. “Bad Apples, Bad Cases, and Bad Barrels: Meta-Analytic Evidence about Sources of Unethical Decisions at Work.” Journal of Applied Psychology 95 (2010), pp. 1–31.
7.85 Tomlinson, E.C. “Teaching the Inter- actionist Model of Ethics.” Journal of Management Educa- tion 33 (2009), pp. 142–65; and Treviño, L.K., and M.E. Brown. “Managing to be Ethical: Debunking Five Business Ethics Myths.” Academy of Management Executive 18 (2004), pp. 69–83.
7.86 Rest, Moral Development.
7.87 Butterfield, K.D.; L.K. Treviño; and G.R. Weaver. “Moral Aware- ness in Business Orga- nizations: Influence of Issue-Related and Social Context Factors.” Human Relations 53 (2000), pp. 981–1017.
7.88 Berfield, S. “Steal This Look.” Bloomberg Businessweek, January 24–30, 2011, pp. 90–96.
7.89 Source: Berfield, S. “Steal This Look.” Bloomberg Business- week, January 24–30, 2011, pp. 90–96
7.90 Jones, T.M. “Ethical Decision Making by Individuals in Organiza- tions: An Issue- Contingent Model.” Academy of Manage- ment Review 16 (1991), pp. 366–95.
7.91 Singhapakdi, A.; S.J. Vitell; and K.L. Kraft. “Moral Intensity and Ethical Decision- Making of Marketing Professionals.” Journal of Business Research 36 (1996), pp. 245–55.
7.92 Jones, “Ethical Deci- sion Making by Individ- uals in Organizations.”
7.93 Reynolds, S.J. “Moral Attentiveness: Who Pays Attention to the Moral Aspects of Life?” Journal of Applied Psy- chology 93 (2008), pp. 1027–41.
7.94 Porter, J. “Using Ex- Cons to Scare MBAs Straight.” BusinessWeek, May 5, 2008, p. 58.
7.95 Source: Porter, J. “Using Ex-Cons to scare MBAs Straight.” Businessweek, May 5, 2008, p. 58.
7.96 Rest, Moral Development.
7.97 Kohlberg, L. “Stage and Sequence: The Cogni- tive Developmental Approach to Socializa- tion.” In Handbook of Socialization Theory, ed. D.A. Goslin. Chicago: Rand McNally, 1969, pp. 347–480; and Kohl- berg, L. “The Claim to Moral Adequacy of a Highest Stage of Moral Judgment.” Journal of Philosophy 70 (1973), pp. 630–46.
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7.98 Rest, J. Manual for the Defining Issues Test. Minneapolis, MN: Center for the Study of Ethical Development, 1986; and Loviscky, G.E.; L.K. Treviño; and R.R. Jacobs. “Assess- ing Managers’ Ethical Decision-Making: An Objective Measure of Managerial Moral Judgment.” Journal of Business Ethics 73 (2007), pp. 263–85.
7.99 Kohlberg, “Stage and Sequence”; and Kohlberg, “The Claim to Moral Adequacy.”
7.100 Ibid.
7.101 Treviño et al., “Behav- ioral Ethics”
7.102 Kohlberg, “Stage and Sequence”; and Kohlberg, “The Claim to Moral Adequacy.”
7.103 Treviño et al., “Behav- ioral Ethics;” and Rest, J.; D. Narvaez; M.J. Bebeau; and S.J. Thoma. Postconven- tional Moral Thinking: A Neo-Kohlbergian Approach. Mahwah, NJ: Erlbaum, 1999.
7.104 Crane and Matten, Business Ethics. New York: Oxford Univer- sity Press, 2007.
7.105 Ibid.
7.106 Rest, Moral Development.
7.107 Kaptein, M. “Devel- oping and Testing a Measure for the Ethical Culture of Organizations: The Corporate Ethics Virtues Model.”
Journal of Organiza- tional Behavior 29 (2008), pp. 923–47; Schminke, M.; M.L. Ambrose; and D.O. Neubaum. “The Effect of Leader Moral Development on Ethical Climate and Employee Atti- tudes.” Organizational Behavior and Human Decision Processes 97 (2005), pp. 135–51; and Treviño, “Ethical Decision Making in Organizations”
7.108 Schweitzer, M.E.; L. Ordòñez; and B. Douma. “Goal Setting as a Motivator of Unethical Behavior.” Academy of Manage- ment Journal 47 (2004), pp. 422–32.
7.109 Aquino, K., and A. Reed II. “The Self- Importance of Moral Identity.” Journal of Personality and Social Psychology 83 (2002), pp. 1423–40.
7.110 Ibid.
7.111 Reynolds, S.J., and T.L. Ceranic. “The Effects of Moral Judgment and Moral Identity on Moral Behavior: An Empiri- cal Examination of the Moral Individual.” Journal of Applied Psychology 92 (2007), pp. 1610–24.
7.112 Schminke, M.; M.L. Ambrose; and T.W. Noel. “The Effects of Ethical Frameworks on Perceptions of Organizational Justice.” Academy of Management Journal
40 (1997), pp. 1190– 1207; and Wendorf, C.A.; S. Alexander; and I.J. Firestone. “Social Justice and Moral Reasoning: An Empirical Integration of Two Paradigms in Psychological Research.” Social Justice Research 15 (2002), pp. 19–39.
7.113 Mayer, R.C., and M.B. Gavin. “Trust in Management and Performance: Who Minds the Shop While the Employees Watch the Boss?” Academy of Management Jour- nal 48 (2005), pp. 874–88.
7.114 Blau, P. Exchange and Power in Social Life. New York: Wiley, 1964; and Shore, L.M.; L.E. Tetrick; P. Lynch; and K. Barks- dale. “Social and Economic Exchange: Construct Develop- ment and Validation.” Journal of Applied Social Psychology 36 (2006), pp. 837–67.
7.115 Ibid.
7.116 Dirks, K.T., and D.L. Ferrin. “Trust in Leadership: Meta- Analytic Findings and Implications for Research and Practice.” Journal of Applied Psychology 87 (2002), pp. 611–28.
7.117 Ibid.
7.118 Carroll, A.B. “A Three- Dimensional Model of Corporate Social Per- formance.” Academy of Management Review 4
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(1979), pp. 497–505; Carroll, A.B. “The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Orga- nizational Stakehold- ers.” Business Horizons 34 (1991), pp. 39–48; Carroll, A.B. “The Four Faces of Cor- porate Citizenship.” Business and Society Review 100 (1998), pp. 1–7; and Carroll, A.B. “Corporate Social Responsibility—- Evolution of a Definitional Con- struct.” Business and
Society 38 (1999), pp. 268–95.
7.119 Carroll, “The Pyramid.”
7.120 Weber, J. “The New Ethics Enforcers.” Busi- nessWeek, February 13, 2006, pp. 76–77.
7.121 Carroll, “The Pyramid.”
7.122 Schoeff, M., Jr. “J. M. Smuckers Co.” Workforce Manage- ment, March 13, 2006, p. 19.
7.123 Carroll, “The Pyramid.”
7.124 Grow, B.; S. Hamm; and L. Lee. “The Debate Over Doing Good.” BusinessWeek, August 15, 2005, pp. 76–78.
7.125 Holmes, S. “Nike Goes for the Green.” BusinessWeek, Sep- tember 25, 2006, pp. 106–108.
7.126 Gunther, M. “The Green Machine.” For- tune, August 7, 2006, pp. 42–57.
7.127 Grow et al., “The Debate Over Doing Good.”
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8
LEARNING GOALS
8.1 What is learning, and how does it affect decision making? 8.2 What types of knowledge can employees gain as they learn and build expertise? 8.3 What are the methods by which employees learn in organizations? 8.4 What two methods can employees use to make decisions? 8.5 What decision-making problems can prevent employees from translating their learning into accurate
decisions?
8.6 How does learning affect job performance and organizational commitment? 8.7 What steps can organizations take to foster learning?
After reading this chapter, you should be able to answer the following questions:
Learning and Decision Making
INDIVIDUAL OUTCOMES
INDIVIDUAL MECHANISMS
INDIVIDUAL CHARACTERISTICS
ORGANIZATIONAL MECHANISMS
Organizational Culture
Organizational Structure
Teams: Processes &
Communication
Motivation
Trust, Justice, & Ethics
Teams: Characteristics &
Diversity Learning &
Decision Making
Ability
Personality & Cultural Values
Stress
Leadership: Power &
Negotiation
Job Satisfaction
Leadership: Styles &
Behaviors
Organizational Commitment
Job Performance
GROUP MECHANISMS
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B ridgewater Associates LP, based in Westport, CT, (about an hour from New York City) is the world’s larg- est hedge fund firm, managing $160 billion in invest-
ments. It is also a company whose 1,500 employees are doggedly focused on identifying mistakes and learning from them. Bridgewater records almost every conversation and every meeting between employees and analyzes them for mistakes and successes. The company requires employ- ees to work in an environment of “radical truth” and “radi- cal transparency.” What does that mean? Well, for one thing, it means that employees are expected to be as open and honest as possible with everyone and everything they come in contact with at work. This might mean speaking up when they feel a meeting is a waste of time. It also might mean telling a person in front of a room full of people that they are unprepared and their opinion didn’t add value. In fact, the second worst thing you can do as an employee (dishon- esty is first) is to say something about a person behind their back—the expectation is that you will say it to their face.
Much of this culture of transparency and truth comes from Bridgewater founder Ray Dalio (age 67) who moves
between jobs (or at least job titles) such as CIO, CEO, and Mentor on a regular basis as he attempts to find a succes- sor. The unquestioned leader regardless of his job title, Dalio describes the firm as an “intellectual Navy Seals” and notes that the firm is ruled by a manifesto he created of 210 principles. Over 100 pages long, new employees are expected to have read these principles and act accordingly when they arrive to work. (Open to the public, a list of these principles can be found at www.principles.com.)
At the core of these principles is a desire for employees to learn and be independent thinkers and decision makers. The goal is that decisions inside the firm are made with full information and diversity of thought—ideas rule, not emo- tions. This also means that the expectation is that conflict will be a daily part of life. It’s not an environment that fits everyone—20 percent of new hires leave within their first year. Sometimes the honesty is too much and employ- ees can be found crying in the bathroom. However, many employees thrive in the environment. Dalio states that as a firm, “our greatest power is that we know that we don’t know and we are open to being wrong and learning.”
BRIDGEWATER ASSOCIATES
©Bloomberg/Getty Images
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8.2 What types of knowledge can employees gain as they learn and build expertise?
8.1 What is learning, and how does it affect decision making?
L E A R N I N G A N D D E C I S I O N M A K I N G
Bridgewater Associates spends an enormous amount of time and effort to create an environment where employees learn from their mistakes and ideally make decisions more effectively through open and honest communication and conflict. Learning reflects relatively permanent changes in an employee’s knowledge or skill that result from experience.1 The more employees learn, the more they bring to the table when they come to work. Why is learning so important? Because it has a significant impact on decision making, which refers to the process of generating and choos- ing from a set of alternatives to solve a problem. The more knowledge and skills employees pos- sess, the more likely they are to make accurate and sound decisions. The risk, at Bridgewater and other organizations, is that less experienced employees will lack the knowledge base needed to make the right decisions when performing their jobs or stepping into new roles.
One reason inexperience can be so problematic is that learning is not necessarily easy. Have you ever watched “experts” perform their jobs? How is it that someone becomes an expert? It takes a significant amount of time to become proficient at most complex jobs. It takes most employees anywhere from three months to a year to perform their job at a satisfactory level.2 To develop high levels of expertise takes significantly longer. This difficulty makes it even more important for com- panies to find a way to improve learning and decision making by their employees.
W H Y D O S O M E E M P LOY E E S L E A R N TO M A K E D E C I S I O N S B E T T E R T H A N OT H E R S ?
Bill Buford, a journalist interested in becoming a chef, was hired by Mario Batali’s world-renowned restaurant Babbo in New York. At some point early in his tenure in the kitchen, he realized he was in over his head while he stood and watched other, more experienced cooks work at an unbeliev- ably frantic pace. He knew right then that he had a decision to make:
I was at a go-forward-or-backward moment. If I went backward, I’d be saying, “Thanks for the visit, very interesting, that’s sure not me.” But how to go forward? There was no place for me. These people were at a higher level of labor. They didn’t think. Their skills were so deeply inculcated they were available to them as instincts. I didn’t have skills of that kind and couldn’t imagine how you’d learn them. I was aware of being poised on the verge of something: a long, arduous, confidence-bashing, profoundly humiliating experience.3
In this situation, Buford realized that his coworkers had more expertise than he did. Expertise refers to the knowledge and skills that distinguish experts from novices and less experienced peo- ple.4 Research shows that the differences between experts and novices is almost always a function of learning as opposed to the more popular view that intelligence or other innate differences make the difference.5 Although learning cannot be directly seen or observed, we can tell when people have learned by observing their behaviors. It’s those behaviors that can be used to tell experts from novices, and it is changes in those behaviors that can be used to show that learners are gain- ing knowledge. Although it’s sometimes easy for employees to mimic a behavior once or twice, or get lucky with a few key decisions, true learning only occurs when changes in behavior become relatively permanent and are repeated over time. Understanding why some employees prove better at this than others requires understanding what exactly employees learn and how they do it. For more discussion of the development of expertise, see our OB at the Bookstore feature.
T Y P E S O F K N OW L E D G E Employees learn two basic types of knowledge, both of which have important implications for organizations. Explicit knowledge is the kind of information you’re likely to think about when you picture someone sitting down at a desk to learn. It’s information that’s relatively easily
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OB AT THE BOOKSTORE PEAK by Anders Ericsson and Robert Pool (New York: Houghton Mifflin Harcourt, 2016)
The main thing that sets experts apart from the rest of us is that their years of practice have changed the neural circuitry in their brains to produce highly specialized mental representations, which in turn make possible the incredible memory, pattern recognition, problem solving, and other sorts of advanced abilities needed to excel in their particular specialties.
With those words, Anders Ericsson and Robert Pool deliver the main thrust of the book’s message: ignore the premise of “natural ability” and realize that effort is the primary building block that develops expertise. Did you ever want to become an expert at something? Have you heard of the 10,000 hour rule? Made popu- lar in Outliers, a book written by Malcolm Gladwell, the rule states that one has to spend 10,000 hours doing something to become an “expert” at it. The research that Gladwell cited was that of Anders Ericsson who has spent his career studying people who are exceptional at what they do—in other words, experts. Although Ericsson argues that Gladwell misunderstood his research and that the 10,000 hour rule is not really a “rule”—it does help highlight something very clear—“people working to become experts requires a tremendous amount of effort exerted over many years. It may not require exactly 10,000 hours, but it will take a lot.”
In fact, it takes exerted effort at what Ericsson calls “deliberate practice.” Naïve practice, as noted in the book, is essentially just
doing something repeatedly and expecting that the simple repetition will improve your perfor- mance. Ericsson would argue that it won’t. The most practical benefit of the book is the detailed explanation of deliberate practice, which involves well-defined and specific goals, focus, feedback, and getting out of our comfort zone. Ideally, all of this happens under the tutelage of an expert so that the practice will be well informed. Much of Ericsson’s research on expertise is oriented around the development of tacit knowledge, or what he refers to as “mental representations.” These mental representations are what allow experts to process their world more efficiently and accurately than novices.
©Roberts Publishing Services
communicated and a large part of what companies teach during training sessions. Think about it this way: If you can put the information or knowledge in a manual or write it down for someone else, chances are good you’re talking about explicit knowledge. As you read this textbook, we’re doing our best to communicate explicit knowledge to you that will be useful to you in your future job. Although such information is necessary to perform well, it winds up being a relatively minor portion of all that you need to know.
Tacit knowledge, in contrast, is what employees can typically learn only through experience.6 It’s not easily communicated but could very well be the most important aspect of what we learn in organizations.7 In fact, it’s been argued that up to 90 percent of the knowledge contained in organizations occurs in tacit form.8 Did you ever get to be so good at something that you had the ability to do it but couldn’t really explain it to someone else? That’s a common way to explain tacit knowledge. It’s been described as the “know-how,” “know-what,” and “know-who” acquired solely through experience.9 Others have used terms such as intuition, skills, insight, beliefs, mental
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models, and practical intelligence.10 Table 8-1 lists the qualities that help explain the differ- ences between explicit and tacit knowledge. Some would say that explicit knowledge is what every- one can find and use, but tacit knowledge is what separates experts from common people.11
M E T H O D S O F L E A R N I N G Tacit and explicit knowledge are extremely important to employees and organizations. As an employee, it’s hard to build a high level of tacit knowledge without some level of explicit knowledge to build from. From an organization’s perspective, the tacit knowledge its employees accumulate may be the single most important strategic asset a company possesses.12 The ques- tion then becomes: How do employees learn these types of knowledge? The short answer is that we learn through reinforcement (i.e., rewards and punishment), observation, and experience.
REINFORCEMENT We’ve long known that man- agers use various methods of reinforcement to induce desirable or reduce undesirable behaviors by their employees. Originally known as operant conditioning, B.F. Skinner was the first to pio- neer the notion that we learn by observing the link between our voluntary behavior and the con- sequences that follow it. Research has continually demonstrated that people will exhibit specific behaviors if they’re rewarded for doing so. Not surprisingly, we have a tendency to repeat behav- iors that result in consequences that we like and to reduce behaviors that result in consequences we don’t like. Figure 8-1 shows this operant conditioning process.
In the model in Figure 8-1, you can see that there are antecedents or events that precede or sig- nal certain behaviors, which are then followed by consequences. Antecedents in organizations are typically goals, rules, instructions, or other types of information that help show employees what is expected of them. Although antecedents are useful for motivational reasons, it’s primarily the consequences of actions that drive behavior. This entire process of reinforcement is a continuous cycle, and the repetition of behaviors is strengthened to the degree that reinforcement continues
8.3 What are the methods by which employees learn in organizations?
Expertise is the accumula- tion of superior knowledge
and skills in a field that separates experts from
everyone else.
©Dynamic Graphics/JupiterImages
TABLE 8-1 Characteristics of Explicit and Tacit Knowledge
EXPLICIT KNOWLEDGE TACIT KNOWLEDGE
Easily transferred through written or verbal communication
Very difficult, if not impossible, to articulate to others
Readily available to most Highly personal in nature
Can be learned through books Based on experience
Always conscious and accessible information
Sometimes holders don’t even recognize that they possess it
General information Typically job- or situation-specific
Source: Adapted from R. McAdam, B. Mason, and J. McCrory, “Exploring the Dichotomies within the Tacit Knowledge Literature: Towards a Process of Tacit Knowing in Organizations,” Journal of Knowledge Management 11 (2007), pp. 43–59.
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FIGURE 8-1 Operant Conditioning Components
Behavior ConsequenceAntecedent
Manager sets specific and di�cult goal
Condition that precedes behavior
Employee meets assigned goal
Action performed by employee
Employee receives a bonus
Result that occurs after behavior
to occur. There are four specific consequences typically used by organizations to modify employee behavior, known as the contingencies of reinforcement.13 Figure 8-2 summarizes these contingen- cies. It’s important to separate them according to what they’re designed to do—namely, increase desired behaviors or decrease unwanted behaviors.
Two contingencies of reinforcement are used to increase desired behaviors. Positive reinforcement occurs when a positive outcome follows a desired behavior. It’s perhaps the most common type of reinforcement and the type we think of when an employee receives some type of “reward.” Increased pay, promotions, praise from a manager or coworkers, and public recognition would all be considered positive reinforcement when given as a result of an employee exhibiting desired behaviors. For positive reinforcement to be successful, employees need to see a direct link between their behaviors and desired outcomes (see Chapter 6 on motivation for more discussion of such issues). If the consequences aren’t realized until long after the specific behaviors, then the odds that employees will link the two are minimized. Negative reinforcement occurs when an unwanted outcome is removed following a desired behavior. Have you ever performed a task for the specific reason of not getting yelled at? If so, you learned to perform certain behaviors through the use of negative reinforcement. Perhaps there are some tasks your job requires that you don’t enjoy. If your manager removes these responsibilities specifically because you perform well at another aspect of your job, then this could also be seen as negative reinforcement. It’s important to remem- ber that even though the word “negative” has a sour connotation to it, it’s designed to increase desired behaviors.
FIGURE 8-2 Contingencies of Reinforcement
Wanted Outcome
Consequence Is Added
Consequence Is Removed
Unwanted Outcome
Increases Desired Behaviors
Decreases Unwanted Behaviors
Positive Reinforcement
Negative Reinforcement
Extinction
Punishment
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The next two contingencies of reinforcement are designed to decrease undesired behaviors. Pun- ishment occurs when an unwanted outcome follows an unwanted behav- ior. Punishment is exactly what it sounds like. In other words, employ- ees are given something they don’t like as a result of performing behav- iors that the organization doesn’t like. Suspending an employee for showing up to work late, assigning job tasks generally seen as demean- ing for not following safety proce- dures, or even firing an employee for gross misconduct are all exam-
ples of punishment. Extinction occurs when there is the removal of a consequence following an unwanted behavior. The use of extinction to reinforce behavior can be purposeful or accidental. Perhaps employees receive attention from coworkers when they act in ways that are somewhat childish at work. Finding a way to remove the attention would be a purposeful act of extinction. Similarly though, perhaps employees work late every now and then to finish up job tasks when work gets busy, but their manager stops acknowledging that hard work. Desired behavior that’s not reinforced will diminish over time. In this way, a manager who does nothing to reinforce good behavior is actually decreasing the odds that it will be repeated!
In general, positive reinforcement and extinction should be the most common forms of rein- forcement used by managers to create learning among their employees. Positive reinforcement doesn’t have to be in the form of material rewards to be effective. There are many ways for managers to encourage wanted behaviors. Offering praise, providing feedback, public recogni- tion, and small celebrations are all ways to encourage employees and increase the chances they will continue to exhibit desired behaviors. At the same time, extinction is an effective way to stop unwanted behaviors. Both of these contingencies deliver their intended results, but perhaps more importantly, they do so without creating feelings of animosity and conflict. Although punishment and negative reinforcement will work, they tend to bring other, detrimental conse- quences along with them.
Whereas the type of reinforcement used to modify behavior is important, research also shows that the timing of reinforcement is equally important.14 Therefore, it’s important to examine the timing of when the contingencies are applied, referred to as schedules of reinforcement. Table 8-2 provides a summary of the five schedules of reinforcement. Continuous reinforcement is the sim- plest schedule and happens when a specific consequence follows each and every occurrence of a desired behavior. New learning is acquired most rapidly under a continuous schedule.15 For most jobs, continuous reinforcement is impractical. As a manager, can you imagine providing positive reinforcement every time someone exhibits a desired behavior? It’s a good thing that research also shows that under many circumstances, continuous reinforcement might be considered the least long lasting, because as soon as the consequence stops, the desired behavior stops along with it.16 Once a behavior has been acquired, some form of intermittent scheduling is more effective.17
The other four schedules differ in terms of their variability and the basis of the consequences. Two schedules are interval based; that is, they distribute reinforcement based on the amount of time that passes. A fixed interval schedule is probably the single most common form of reinforce- ment schedule. With this schedule, workers are rewarded after a certain amount of time, and the length of time between reinforcement periods stays the same. Every time employees get a pay- check after a predetermined period of time, they’re being reinforced on a fixed interval schedule. Variable interval schedules are designed to reinforce behavior at more random points in time. A supervisor walking around at different points of time every day is a good example of a variable interval schedule. If that supervisor walked around at the same exact time every day, do you think workers would be more or less prone to exhibit good behaviors throughout the day?
Positive reinforcement, like public recognition, both encourages employees
and helps ensure that desirable behaviors will be
imitated and repeated.
©Caiaimage/Paul Bradbury/OJO+/Getty Images RF
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The other two reinforcement schedules are based on actual behaviors. Fixed ratio schedules rein- force behaviors after a certain number of them have been exhibited. Some manufacturing plants have created piece-rate pay systems in which workers are paid according to the number of items they produce. Employees know ahead of time how many items they have to produce to be rein- forced. Variable ratio schedules reward people after a varying number of exhibited behaviors. Sales- people, for example, are often compensated based on commission because they receive extra pay every time they sell an item. However, a car salesperson doesn’t make a sale every time someone walks in the door of the dealership. Sometimes it takes exhibiting good sales behaviors to eight or nine customers to make a sale. Take a slot machine as an example. The machine doesn’t reward you for every lever pull or even every 10 lever pulls—you never know when the next winning pull will be. Would you say that slot machines do a good job of reinforcing the behavior that casinos would like you to have? You bet! There is a significant amount of evidence that variable ratio reinforce- ment and the “like” button is largely responsible for the addictive growth of numerous social media platforms such as Facebook and Twitter.18 Think about what happens every time you post some- thing on social media—you wait to see who “likes” it or responds. That good feeling you get when someone does? That’s variable ratio reinforcement in action and it makes you want to do it again.
On the whole, research has consistently shown that variable schedules lead to higher levels of performance than fixed schedules.19 Think about it this way: Do you study more consistently in a class that gives pop quizzes or one that simply tests you three set times a semester? Research also shows that desired behaviors tend to disappear much more quickly when reinforcement is discon- tinued under fixed plans. However, variable schedules are not always appropriate for some types of reinforcement. How would you like it if your employer decided to give you your paychecks on a variable schedule? Sorry, you’re not getting a paycheck this week—maybe next week! Moreover, studies suggest that continuous or fixed schedules can be better for reinforcing new behaviors or behaviors that don’t occur on a frequent basis.
OBSERVATION In addition to learning through reinforcement, social learning theory argues that people in organizations have the ability to learn through the observation of others.20 In fact, many would argue that social learning is the primary way by which employees gain knowledge in organi- zations.21 Think about where you’re most likely to get your cues while working in an organization. When possible, chances are good you’ll look around at other employees to figure out the appropri- ate behaviors on your job. Not only do employees have the ability to see the link between their own behaviors and their consequences, they can also observe the behaviors and consequences of others.22 When employees observe the actions of others, learn from what they observe, and then repeat the observed behavior, they’re engaging in behavioral modeling.
For behavioral modeling to occur successfully, a number of processes have to take place. These steps are shown in Figure 8-3. First, the learner must focus attention on an appropriate model and
TABLE 8-2 Schedules of Reinforcement
REINFORCEMENT SCHEDULE
REWARD GIVEN FOLLOWING
POTENTIAL LEVEL OF PERFORMANCE
EXAMPLE
Continuous Every desired behavior High, but difficult to maintain
Praise
Fixed interval Fixed time periods Average Paycheck
Variable interval Variable time periods Moderately high Supervisor walk-by
Fixed ratio Fixed number of desired behaviors
High Piece-rate pay
Variable ratio Variable number of desired behaviors
Very high Commission pay
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accurately perceive the critical behavior the model exhibits. That model might be a supervisor, a coworker, or even a subordinate. Some organizations go out of their way to supply role models for newcomers or inexperienced workers to watch and learn from. For instance, Praxair, the global industrial gases company, rewards and encourages older workers to model behavior and share their knowledge. In this way, not only does explicit knowledge get passed on but also tacit knowl- edge. Company representatives believe this has significantly reduced the time it takes for recent graduates to become competent and it passes along skills required to replace retiring employees.23 In fact, because tacit knowledge is so difficult to communicate, modeling might be the single best way to acquire it. For that reason, modeling is a continual process that is used at all levels of many organizations. Ursula Burns’s ascent to CEO of Xerox was carefully controlled as she was allowed to closely observe and model former CEO Anne Mulcahy for a number of years before taking control.24 At Verizon, new CEO Lowell McAdam was tabbed to take over the spot but spent over a year observing and modeling the prior CEO before moving into the job. At the time, McAdam said, “I’m a very roll-up-your-sleeves guy. I need to learn to be CEO.”25 Needless to say, choosing a good model is important, and not all models are good ones. There is a great deal of evidence that supports the notion that employees will learn to behave unethically when in the presence of others who model that same behavior.26 Salomon Brothers, the New York–based investment bank, learned this lesson the hard way when employees began to model the unethical behaviors of their managers and leaders.27 In addition to unethical behavior, there is substantial evidence that employees will behavior model counterproductive work behaviors such as aggression and absen- teeism when they see others in the organization exhibit those behaviors.28
Second, the learner needs to remember exactly what the model’s behavior was and how they did it. This step is very difficult when watching experts perform their job because so much of what they do remains unspoken and can occur at a rapid pace. Third, the learner must undertake pro- duction processes or actually be able to reproduce what the model did. Not only must the learner have the requisite knowledge and physical skills to be able to perform the task; now he or she must translate what’s been observed into action. Do you remember the first time you drove a car? Chances are good you’d been watching other drivers for many years, picking up bits and pieces of how to do it through observation. However, things became different when you were behind the wheel for the first time. Suddenly, there was a lot of information to process, and years and years of observation had to be put into action.
Fourth, the last step of behavioral modeling is reinforcement. This reinforcement can come from observation, direct experience, or both. The learner can observe the consequences of the model having exhibited the behavior (positive reinforcement or punishment), which in itself will help ingrain the desirability of performing the behavior. In addition, it’s important for the learner to receive reinforcement after replicating the behavior. If the newly acquired behaviors are posi- tively reinforced, the likelihood of continued behavior increases.
FIGURE 8-3 The Modeling Process
Source: Adapted from H.M. Weiss, “Learning Theory and Industrial and Organizational Psychology,” Handbook of Indus- trial and Organizational Psychology, ed. M.D. Dunnette and L.M. Hough (Consulting Psychologists Press: Palo Alto, CA, 1990), pp. 75–169.
Learner focuses
attention on the critical behaviors
exhibited by the model
Attentional Processes
Learner must remember the behaviors of the model once the
model is no longer present
Retention Processes
Learner must have the
appropriate skill set and be
able to reproduce the
behavior
Production Processes
Learner must view the model
receiving reinforcement for the behavior and
then receive it themself
Reinforcement
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GOAL ORIENTATION Before we leave this section, it’s impor- tant to recognize that people learn somewhat differently according to their predisposi- tions or attitudes toward learn- ing and performance. These differences are reflected in dif- ferent “goal orientations” that capture the kinds of activities and goals that people priori- tize. Some people have what’s known as a learning orientation, where building competence is deemed more important than demonstrating competence. “Learning-oriented” persons enjoy working on new kinds of tasks, even if they fail during their early experiences. Such people view failure in positive terms—as a means of increasing knowledge and skills in the long run.29
For others, the demonstration of competence is deemed a more important goal than the build- ing of competence. That demonstration of competence can be motivated by two different thought processes. Those with a performance-prove orientation focus on demonstrating their competence so that others think favorably of them. Those with a performance-avoid orientation focus on demon- strating their competence so that others will not think poorly of them. In either case, “performance- oriented” people tend to work mainly on tasks at which they’re already good, preventing them from failing in front of others. Such individuals view failure in negative terms—as an indictment of their ability and competence.
Research has shown that a learning goal orientation improves self-confidence, feedback- seeking behavior, learning strategy development, and learning performance.30 Research on the two performance orientations is more mixed. Although it would seem that focusing on perfor- mance should improve performance-based outcomes, research shows that isn’t necessarily the case. On the whole, a performance-prove orientation tends to be a mixed bag, producing varying levels of performance and outcomes. What’s more clear are the detrimental effects of having a performance-avoid orientation. Employees who enter learning situations with a fear of looking bad in front of others tend to learn less and have substantially higher levels of anxiety.31 What kind of orientation do you tend to exhibit? See our OB Assessments feature to find out. Regard- less of an individual’s general tendency though, it has been found that managers or trainers can set training-specific orientations toward learning.32 In other words, they can instruct you to have a specific goal orientation before you start a training session. Under such conditions, set- ting learning-oriented goals for those in training is likely to foster more skill development than setting performance-oriented goals.33
M E T H O D S O F D E C I S I O N M A K I N G How do employees take explicit and tacit knowledge, however it’s gained, and turn that knowl- edge into effective decision making? Sometimes that process is very straightforward. Programmed decisions are decisions that become somewhat automatic because people’s knowledge allows them to recognize and identify a situation and the course of action that needs to be taken. As shown in Figure 8-4, experts often respond to an identified problem by realizing that they’ve dealt with it before. That realization triggers a programmed decision that’s implemented and then evaluated according to its ability to deliver the expected outcome. For experts who possess high levels of explicit and tacit knowledge, many decisions they face are of this programmed variety. That’s not to say that the decisions are necessarily easy. It simply means that their experi- ence and knowledge allows them to see the problems more easily and recognize and implement solutions more quickly.
8.4 What two methods can employees use to make decisions?
Ursula Burns was provided an unusual opportunity to learn by observation and behavioral modeling before becoming CEO of Xerox. She essentially co-led with her predeces- sor for two years to gain insider experience before taking the helm.
©Bloomberg/Getty Images
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OB ASSESSMENTS
SCORING AND INTERPRETATION
Learning Orientation: Sum up items 1–4. _____ Performance-Prove Orientation: Sum up items 5–7. _____ Performance-Avoid Orientation: Sum up items 8–10. _____
For learning orientation, scores of 16 or more are above average, and scores of 15 or less are below average. For the two performance orientations, scores of 11 or more are above average, and scores of 10 or less are below average.
Source: Adapted from J.F. Brett and D. VandeWalle, “Goal Orientation and Goal Content as Predictors of Performance in a Training Program,” Journal of Applied Psychology 84 (1999), pp. 863–73. Copyright (c) 1999 by the American Psycho- logical Associated.
GOAL ORIENTATION What does your goal orientation look like? This assessment is designed to measure all three dimensions of goal orientation. Please write a number next to each statement that indicates the extent to which it accurately describes your attitude toward work while you are on the job. Answer each question using the response scale provided. Then sum up your answers for each of the three dimensions. (Instructors: Assessments on rational decision making, intuition, learning potential, and social identity can be found in the PowerPoints in the Connect Library’s Instructor Resources and in the Connect assignments for this chapter.)
1 STRONGLY DISAGREE
2 DISAGREE
3 NEUTRAL
4 AGREE
5 STRONGLY AGREE
1. I would rather do something difficult where I learn a lot than something easy. ________
2. I am constantly seeking out moments that allow me to better myself. ________
3. I relish the opportunity to learn new things by doing something I’ve never done before.
________
4. Taking a chance on something is worth it if I grow from it as a result. ________
5. I enjoy proving that I can perform better than others at work. ________
6. Working hard to show others how well I can do is important. ________
7. I like it when others know how well I can do things at work. ________
8. I generally won’t try things if others might see me fail. ________
9. I avoid tasks that might show others that I have a low ability to be successful. ________
10. Even though I might learn from it, I won’t try something new in front of others if it might show my low ability.
To experts, programmed decisions sometimes comes across as intuition or a “gut feeling.” Intu- ition can be described as emotionally charged judgments that arise through quick, nonconscious, and holistic associations.34 There is almost unanimous consent among researchers that intuition is largely a function of learning—tacit knowledge gained through reinforcement, observation, and experience allows a decision maker to decide more quickly and confidently.35 Because of their
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FIGURE 8-4 Programmed and Nonprogrammed Decisions
Yes
Yes
Yes
No
No
No
Experts tend to recognize problems more quickly than novices
Programmed Decisions Nonprogrammed Decisions (using rational decision-making model)
Experts have the ability to recognize patterns and situations that novices don't
Identify the problem
Is the problem recognized? Has it been dealt with
before?
Does the solution deliver the expected
outcome?
Implement appropriate solution
Does the solution deliver the expected
outcome?
Determine appropriate criteria
for making a decision
Generate list of available alternatives
Evaluate the alternatives against
criteria
Choose the solution that maximizes value
Implement appropriate solution
tacit knowledge, experts sometimes cannot put into words why they know that a problem exists, why a solution will work, or how they accomplished a task. They just “know.” Of course, the dif- ficulty arises in knowing when to trust that “gut instinct” and when not to.36 As a general rule of thumb, you should probably ask yourself how much expertise you have about the subject of the judgment. Research is clear that intuition can be a very effective way to make decisions, but only
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when those making the decisions have a high level of domain expertise.37 In other words, don’t go laying down your life savings on a spin of the roulette wheel in Vegas because your intuition tells you “red”!
Intuitive decision making is perhaps never more important than during a crisis. A crisis situation is a change—whether sudden or evolving—that results in an urgent problem that must be addressed immediately. For businesses, a crisis is anything with the potential to cause sud- den and serious damage to its employees, reputation, or bottom line. One of the key factors in almost all crises is that decisions must be made quickly.38 Unless there has been some form of specific preplanning for that crisis, managers (who should have the most tacit knowledge to support their decisions) must use their intuition rather than take a lengthy period of time to think through all of their options.39 When a manager uses intuition to make a decision in a crisis situation, followers often misinterpret the manager’s intent because the managers can’t put the reasons for their decisions into words (or don’t have the time to do so).40 In turn, the implementation of their plan often suffers. Therefore, managers who make decisions face two major questions: How can they ensure that others follow their lead when the path is unclear, and how can they confirm that their intuition is not faulty? Karl Weick, a preeminent scholar on crisis management at the University of Michigan, suggests five steps for communicating intent to others when using intuition:
1. Here’s what I think we face. (How does the manager perceive the situation?) 2. Here’s what I think we should do. (A task-focused statement of what the manager wants to happen) 3. Here’s why. (The reasoning behind the decision) 4. Here’s what we should keep our eye on. (What things should the staff look for to ensure the intu-
ition is correct or that the situation hasn’t changed?) 5. Now, talk to me. (Confirm that everyone understands their roles and that there is no other infor-
mation to consider.)41
These communications steps are important for a manager making intuitive decisions because they help others follow directives more easily, while also providing a check on the manager to ensure he or she observes the crisis environment correctly.
When a situation arises that is new, complex, and not recognized, it calls for a nonprogrammed decision on the part of the employee. Organizations are complex and changing environments, and many workers face uncertainty on a daily basis. In these instances, employees have to make sense of their environment, understand the problems they’re faced with, and come up with solutions to overcome them. As a general rule of thumb, as employees move up the corporate ladder, a larger percentage of their decisions become less and less programmed. How should decision making proceed in such contexts? The rational decision-making model offers a step-by-step approach to making decisions that maximize outcomes by examining all available alternatives. As shown in Figure 8-4, this model becomes relevant when people don’t recognize a problem as one they’ve dealt with before.
The first step in the rational decision-making model is to identify the criteria that are important in making the decision, taking into account all involved parties. The second step is to generate a list of all available alternatives that might be potential solutions to the problem. At this point, evaluating the alternatives is not necessary. The responsibility simply lies in coming up with as many potential solutions as possible. The third step in the model is the evaluation of those alterna- tives against the criteria laid out in step one. Does it matter how much the alternative costs? What exactly will happen as a result of various choices? What will the side effects of the alternative be? The fourth step is to select the alternative that results in the best outcome. That is, given the costs and benefits of each alternative, which alternative provides us with the most value? The fifth step is to implement the alternative.
The rational decision-making model assumes that people are, of course, perfectly rational. How- ever, problems immediately arise when we start to examine some of the assumptions the model makes about human decision makers.42 The model assumes there is a clear and definite problem to solve and that people have the ability to identify what that exact problem is. It also assumes that decision makers have perfect information—that they know and are able to identify the avail- able alternatives and the outcomes that would be associated with those alternatives. The model
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OB ON SCREEN THE BIG SHORT
OK, so here’s how a synthetic CDO works. Let’s say I bet $10 million on a blackjack hand.
With those words, Selena Gomez (international pop star) begins to describe how a complicated collateralized debt obligation (CDO) process works and how it almost took down the entire finan- cial industry in 2008 in The Big Short (Dir: Adam McKay, Paramount, 2015). Gomez does this along with Richard Thaler, Ph.D., (widely known as the father of behavioral economics) while sit- ting at a blackjack table in a casino in Las Vegas. The scene is one of a number of cutaways where various celebrities you wouldn’t expect (think Margot Robbie and Anthony Bourdain) break into the movie to describe detailed and complicated financial topics in simple terms the audience can understand. At a key point in the movie, while interviewing an arrogant financial manager, hedge fund manager Mark Baum (Steve Carell) comes to the realization that the housing market is all built on fraud and faulty decision making on the part of banks and investors.
During this interview, the movie cuts away to Gomez and Thaler who attempt to explain how the synthetic CDO process works. Thaler describes a classic decision-making error—in basketball what is known as the “hot hand fallacy” in which a player makes a bunch of shots in a row and people become overconfident in the odds the next shot will be made. While playing a hand of blackjack, Selena is dealt a Jack and an eight (18) and the dealer’s one card showing is a 7. This results in an 87 percent chance that Selena will win the hand, plus she’s been on a hot streak. A woman standing behind Gomez turns to another person in the crowd and makes a $50 million bet that Gomez will win the hand and offers 3–1 odds. Then others make a bet on that second bet and on and on. So the original $10 million blackjack bet has now turned in to billions of dollars rid- ing on the outcome of the one hand. In the context of the movie, during the real estate boom, the hot hand fallacy played a role when investors mistakenly assumed that the housing market would continue to rise and never go down.
©Pictorial Press Ltd/Alamy
further assumes that time and money are generally not issues when it comes to making a deci- sion, that decision makers always choose the solution that maximizes value, and that they will act in the best interests of the organization. Given all these assumptions, perhaps we shouldn’t label the model as “rational” after all! See our OB on Screen feature for an example of how irrational decision making played a role in the financial crash of 2008.
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D E C I S I O N - M A K I N G P R O B L E M S Because employees don’t always make rational decisions, it’s easy to second-guess decisions after the fact. Many decisions made inside organizations look good at the time and were made with perfectly good justifications to support them but turn out to have what are perceived to be “bad results.” The reality, however, is that it’s a lot easier to question decisions in hindsight. As War- ren Buffett, CEO of Berkshire Hathaway, is often quoted as saying, “In the business world, the rearview mirror is always clearer than the windshield.” Our responsibility here is not to rehash all the poor decisions employees and managers have made (and there are many of them!), but rather to detail some of the most common reasons for bad decision making—in other words, when are people most likely to falter in terms of the rational decision-making model and why?
LIMITED INFORMATION Although most employees perceive themselves as rational decision makers, the reality is that they are all subject to bounded rationality. Bounded rationality is the notion that decision makers simply do not have the ability or resources to process all available information and alternatives to make an optimal decision.43 A comparison of bounded rational- ity and rational decision making is presented in Table 8-3. This limit results in two major prob- lems for making decisions. First, people have to filter and simplify information to make sense of their complex environment and the myriad of potential choices they face.44 This simplification leads them to miss information when perceiving problems, generating and evaluating alternatives, or judging the results. Second, because people cannot possibly consider every single alternative when making a decision, they satisfice. Satisficing results when decision makers select the first acceptable alternative considered.45
In addition to choosing the first acceptable alternative, decision makers tend to come up with alternatives that are straightforward and not that different from what they’re already doing. When you and another person are deciding where to go out for dinner tonight, will you sit down and list every restaurant available to you within a certain mile limit? Of course not. You’ll start listing off alternatives, generally starting with the closest and most familiar, until both parties arrive at a restaurant that’s acceptable to them. Making decisions this way is no big deal when it comes to deciding where to go for dinner, because the consequences of a poor decision are minimal.
8.5 What decision-making problems can prevent employees from translating their learning into accurate decisions?
TABLE 8-3 Rational Decision Making vs. Bounded Rationality
TO BE RATIONAL DECISION MAKERS, WE SHOULD . . .
BOUNDED RATIONALITY SAYS WE ARE LIKELY TO . . .
Identify the problem by thoroughly examining the situation and considering all interested parties.
Boil down the problem to something that is easily understood.
Develop an exhaustive list of alternatives to consider as solutions.
Come up with a few solutions that tend to be straightforward, familiar, and similar to what is currently being done.
Evaluate all the alternatives simultaneously. Evaluate each alternative as soon as we think of it.
Use accurate information to evaluate alternatives.
Use distorted and inaccurate information during the evaluation process.
Pick the alternative that maximizes value. Pick the first acceptable alternative (satisfice).
Sources: Adapted from H.A. Simon, “Rational Decision Making in Organizations,” American Economic Review 69 (1979), pp. 493–513; D. Kahneman, “Maps of Bounded Rationality: Psychology for Behavioral Economics,” The American Economic Review 93 (2003), pp. 1449–75; and S.W. Williams, Making Better Business Decisions (Thousand Oaks, CA: Sage, 2002).
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However, many managers make decisions that have critical consequences for their employees and their customers. In those cases, making a decision without thoroughly looking into the alterna- tives becomes a problem!
FAULTY PERCEPTIONS As decision makers, employees are forced to rely on their perceptions to make decisions. Perception is the process of selecting, organizing, storing, and retrieving informa- tion about the environment. Although perceptions can be very useful—because they help us to make sense of the environment around us—they can often become distorted versions of reality. Percep- tions can be dangerous in decision making because we tend to make assumptions or evaluations on the basis of them. Selective perception is the tendency for people to see their environment only as it affects them and as it is consistent with their expectations. Has someone ever told you, “You only see what you want to see”? If a relative, spouse, or significant other said that to you, chances are good it probably wasn’t the best experience. That person was likely upset that you didn’t perceive the environment (or what was important to them) the same way they did. Selective perception affects our ability to identify problems, generate and evaluate alternatives, and judge outcomes. In other words, we take “shortcuts” when we process information. In the following paragraphs, we’ll discuss some of the ways in which we take shortcuts when dealing with people and situations.
One false assumption people tend to make when it comes to other people is the belief that oth- ers think, feel, and act the same way they do. This assumption is known as a projection bias. That is, people project their own thoughts, attitudes, and motives onto other people. “I would never do that—that’s unethical” equates to “They would never do that—that’s unethical.” Projection bias causes problems in decision making because it limits our ability to develop appropriate criteria for a decision and evaluate decisions carefully. The bias causes people to assume that everyone’s criteria will be just like theirs and that everyone will react to a decision just as they would.
Another example of faulty perceptions is caused by the way we cognitively organize people into groups. Social identity theory holds that people identify themselves by the groups to which they belong and perceive and judge others by their group memberships.46 There is a substantial amount of research that shows that we like to categorize people on the basis of the groups to which they belong.47 These groups could be based on demographic information (gender, race, religion, hair color), occupational information (scientists, engineers, accountants), where they work (GE, Halliburton, Goldman Sachs), what country they’re from (Americans, French, Chinese), or any other subgroup that makes sense to the perceiver. You might categorize students on campus by whether they’re a member of a fraternity or sorority. Those inside the Greek system categorize people by which fraternity or sorority they belong to. And people within a certain fraternity might group their own members on the basis of whom they hang out with the most. There is practically no end to the number of subgroups that people can come up with.
A stereotype occurs when assumptions are made about others on the basis of their member- ship in a social group.48 Although not all stereotypes are bad per se, our decision-making process becomes faulty when we make inaccurate generalizations. Many companies work hard to help their employees avoid stereotyping because doing so can lead to illegal discrimination in the work- place. Facebook, Ortho-McNeil Pharmaceutical, Wells Fargo, Google, Kaiser Permanente, and Microsoft (just to name a few) have developed extensive diversity training programs to help their employees overcome specific cultural, racial, and gender stereotypes in the workplace.49
When confronted with situations of uncertainty that require a decision on our part, we often use heuristics—simple, efficient rules of thumb that allow us to make decisions more easily. In general, heuristics are not bad. In fact, they lead to correct decisions more often than not.50 How- ever, heuristics can also bias us toward inaccurate decisions at times. Consider this example from one of the earliest studies on decision-making heuristics: “Consider the letter R. Is R more likely to appear in the first position of a word or the third position of a word?”51 If your answer was the first position of a word, you answered incorrectly and fell victim to one of the most frequently talked about heuristics. The availability bias is the tendency for people to base their judgments on information that is easier to recall. It’s significantly easier for almost everyone to remember words in which R is the first letter as opposed to the third. The availability bias is why more people are afraid to fly than statistics would support. Every single plane crash is plastered all over the news, making plane crashes more available in memory than successful plane landings.
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TABLE 8-4 Decision-Making Biases
NAME OF BIAS DESCRIPTION
Anchoring The tendency to rely too heavily, or “anchor,” on one trait or piece of information when making decisions even when the anchor might be unreliable or irrelevant. Example: One recent study showed that initial bids for a bottle of wine in an auction could be heavily influenced by simply having subjects write down the last two digits of their Social Security number prior to putting a value on the bottle. Those with higher two-digit numbers tended to bid 60–120 percent more for a bottle of wine than those with low numbers.
Framing The tendency to make different decisions based on how a question or situation is phrased. Example: Why do gas stations (or any retailer) give out discounts for paying cash as opposed to adding a surcharge for using a credit card? The discount is seen as a gain, while the surcharge is seen as a loss. Because humans are loss averse, we’re more likely to give up the dis- count (the gain) than accept the surcharge (the loss).
Representativeness The tendency to assess the likelihood of an event by comparing it to a similar event and assuming it will be similar. Example: Because a flipped coin has come up heads 10 times in a row, some assume the likelihood that it will come up tails is greater than 50–50. This is sometimes referred to as the “gambler’s fallacy.”
Contrast The tendency to judge things erroneously based on a reference that is near to them. Example: If you were to take your hand out of a bowl of hot water and place it in a bowl of lukewarm water, you would describe that water as “cold.” If someone else were to take their hand out of a bowl of extremely cold water and place it in the same bowl of lukewarm water, they would describe that water as “hot.”
Recency The tendency to weigh recent events more than earlier events. Example: A manager tends to weight ratings in performance evalu- ations based on an employee’s behavior during the prior month as opposed to his or her behavior over the entire evaluation period.
Ratio Bias Effect The tendency to judge the same probability of an unlikely event as lower when the probability is presented in the form of a ratio of smaller rather than of larger numbers. Example: When offered an opportunity to win $1 if they drew a red jelly bean, people frequently elected to draw from a bowl that contained a greater number but a smaller proportion of red beans (e.g., 7 in 100 vs. 1 in 10). Participants knew the probabilities were against them, but they “felt” they had a better chance when there were more beans.
Sources: J. Baron, Thinking and Deciding, 3rd ed. (Cambridge, UK: Cambridge University Press, 2000); V. Denes-Raj and S. Epstein, “Conflict between Intuitive and Rational Processing: When People Behave against Their Better Judgment,” Journal of Personality and Social Psychology 66 (1994), pp. 819–29; R.E. Nisbett and L. Ross, Human Inference: Strate- gies and Shortcomings of Social Judgment (Englewood Cliffs, NJ: Prentice Hall, 1980); D.G. Meyers, Social Psychology (Boston, MA: McGraw-Hill, 2005); G. Gigerenzer, P.M. Todd, and ABC Research Group, Simple Heuristics That Make Us Smart (New York: Oxford University Press, 1999); D. Kahneman, A. Tversky, and P. Slovic, Judgment under Uncer- tainty: Heuristics & Biases (Cambridge, UK: Cambridge University Press, 1982); and D. Kahneman and A. Tversky, “Choices, Values and Frames,” American Psychologist 39 (1984), pp. 341–50.
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Aside from the availability bias, there are many other biases that affect the way we make decisions. Table 8-4 describes six more of the most well-researched decision-making biases. After reading them, you might wonder how we ever make accurate decisions at all! The answer is that we do our best to think rationally through our most important decisions prior to making them and tend to use heuristics for decisions that are less important or that need to be made more quickly. Regardless of how often we fall victim to the biases, being aware of potential decision errors can help us make them less frequently. Interestingly enough, Lowe’s, the North Carolina–based home improvement retailer, and several other companies are actually trying to take advantage of these types of biases and behavioral economics in order to get employees to make better decisions about their health benefits.52 Workers are getting bombarded from all angles!
FAULTY ATTRIBUTIONS Another category of decision-making problems centers on how we explain the actions and events that occur around us. Research on attributions suggests that when people witness a behavior or outcome, they make a judgment about whether it was internally or externally caused. For example, when a coworker of yours named Joe shows up late to work and misses an important group presentation, you’ll almost certainly make a judgment about why that happened. You might attribute Joe’s outcome to internal factors—for example, suggesting that he is lazy or has a poor work ethic. Or you might attribute Joe’s outcome to external factors—for example, suggesting that there was unusually bad traffic that day or that other factors prevented him from arriving on time.
The fundamental attribution error argues that people have a tendency to judge others’ behaviors as due to internal factors.53 This error suggests that you would likely judge Joe as having low moti- vation, poor organizational skills, or some other negative internal attribute. What if you yourself had showed up late? It turns out that we’re less harsh when judging ourselves. The self-serving bias occurs when we attribute our own failures to external factors and our own successes to internal factors. Interestingly, evidence suggests that attributions across cultures don’t always work the same way; see our OB Internationally feature for more discussion of this issue.
One model of attribution processes suggests that when people have a level of familiarity with the person being judged, they’ll use a more detailed decision framework. This model is illustrated in Figure 8-5.54 To return to our previous example, if we want to explore why Joe arrived late to work, we can ask three kinds of questions:
Consensus: Did others act the same way under similar situations? In other words, did others arrive late on the same day?
Distinctiveness: Does this person tend to act differently in other circumstances? In other words, is Joe responsible when it comes to personal appointments, not just work appointments?
Consistency: Does this person always do this when performing this task? In other words, has Joe arrived late for work before?
The way in which these questions are answered will determine if an internal or external attribu- tion is made. An internal attribution, such as laziness or low motivation for Joe, will occur if there is low consensus (others arrived on time), low distinctiveness (Joe is irresponsible with other commitments as well), and high consistency (Joe has arrived late before). An external attribution, such as bad traffic or a power outage, will occur if there is high consensus (others arrived late), high distinctiveness (Joe is responsible with other commitments), and low consistency (Joe has never come late to work before).
ESCALATION OF COMMITMENT Our last category of decision-making problems centers on what happens as a decision begins to go wrong. Escalation of commitment refers to the decision to continue to follow a failing course of action.55 The expression “throwing good money after bad” captures this common decision-making error. An enormous amount of research shows that people have a tendency, when presented with a series of decisions, to escalate their commitment to previ- ous decisions, even in the face of obvious failures.56 Why do decision makers fall victim to this sort of error? They may feel an obligation to stick with their decision to avoid looking incompetent. They may also want to avoid admitting that they made a mistake. Those escalation tendencies
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become particularly strong when decision makers have invested a lot of money into the decision and when the project in question seems quite close to completion.57
One prominent example of escalation of commitment is United Airlines’ abandonment of the automated baggage handling system at the Denver International Airport. When it initially opened (after a two-year delay), the baggage handling system with 26 miles of track designed to haul baggage across three terminals was supposed to be the single, most advanced baggage handling system in the world. However, originally scheduled to cost $186 million, a series of delays and technological problems caused the cost of the system to skyrocket by $1 million per day. Because of a series of technological issues, the system never really worked very well. In fact, United was the only airline in the airport willing to use it. It took 10 years and many mangled and lost suitcases before United finally “cut its losses,” saving itself $1 million a month in maintenance fees.58 If you
Any time a major accident occurs in a company, or any time a significant breach of ethics occurs, a company is expected to respond accordingly. One of the natural reactions of employees, cus- tomers, and other observers is to attribute the cause of the negative event to someone. Place- ment or assignment of this blame might be very different, depending on the part of the world in which the company is operating. A culture such as the United States tends to blame the particular individuals most responsible for the event, whereas East Asian (China, Korea, Japan) cultures tend to blame the organization itself. For example, when scandals within organizations occur (e.g., “rogue trading” in an investment bank), newspapers in the United States often publish the name of the employee and discuss the individual worker involved, whereas East Asian newspapers refer to the organization itself.
Interestingly, these biases place different responsibilities on the leaders of organizations in these countries. In East Asian cultures, it’s typical for the leader of an organization to take the blame for accidents, regardless of whether he or she had direct responsibility for them. For exam- ple, the director of a hospital in Tokyo was forced to resign when the cover-up of a medical acci- dent was discovered, even though the director didn’t start his job until after the cover-up took place! Similar events are common, such as the resignation of the CEO of Japan Airlines after a jet crashed, killing 500 people. In the United States, in contrast, CEOs rarely take the same level of blame. When Joseph Hazelwood crashed the Exxon Valdez into the Alaskan coastline, there were no calls for the Exxon CEO to resign. It was simply assumed by the American public that he had nothing to do with the accident.
Much of the reasoning for such differences has to do with the way the cultures view individuals and groups. East Asian cultures tend to treat groups as entities and not as individuals, whereas the culture in the United States tends to see individuals acting of their own accord. This difference means that organizational leaders should be very cognizant of how to handle crises, depending on the country in which the negative event occurs. An apology offered by a senior leader is likely to be seen by East Asians as the company taking responsibility, whereas in the United States, it’s more likely to be taken as an admission of personal guilt.
OB INTERNATIONALLY
Sources: S. An, D. Park, S. Cho, and B. Berger, “A Cross-Cultural Study of Effective Organizational Crisis Response Strategy in the United States and South Korea,” International Journal of Strategic Communications 4 (2010), pp. 225–43; C. Chiu, & M.W. Morris, Y. Hong, and T. Menon, “Motivated Cultural Cognition: The Impact of Implicit Cultural Theo- ries on Dispositional Attribution Varies as a Function of Need for Closure,” Journal of Personality and Social Psychology 78 (2000), pp. 247–59; T. Menon, M.W. Morris, C. Chiu, and Y. Hong, “Culture and the Construal of Agency: Attribution to Individual versus Group Dispositions,” Journal of Personality and Social Psychology 76 (1999), pp. 701–17; and Y. Zemba, M.I. Young, and M.W. Morris, “Blaming Leaders for Organizational Accidents: Proxy Logic in Collective versus Individual- Agency Cultures,” Organizational Behavior and Human Decision Processes 101 (2006), pp. 36–51.
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FIGURE 8-5 Consensus, Distinctiveness, and Consistency
Behavior is observed
Consensus
Lo w
H ig
h
Distinctiveness
Lo w
H ig
h
Consistency
Lo w
H ig
h
Environmental factors are to
blame
External AttributionIndividual factors such as ability, motivation, or
attitudes are to blame
Internal Attribution
ever find yourself in this predicament, recent research suggests that by focusing on what you have to gain by moving on, rather than what you have to lose, will reduce your chances of committing escalation of commitment.59
S U M M A RY: W H Y D O S O M E E M P LOY E E S L E A R N TO M A K E B E T T E R D E C I S I O N S T H A N OT H E R S ? So what explains why some employees learn to make better decisions than others? As shown in Figure 8-6, answering that question requires understanding how employees learn, what kind of
United Airlines took 10 years to finally abandon an expensive but faulty baggage handling system at Denver International Airport, illustrating the power of escalation of commitment.
©Kevin Moloney/The New York Times/Redux Pictures
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FIGURE 8-6 Why Do Some Employees Learn to Make Decisions Better Than Others?
Decision-Making Problems
• Limited Information
• Faulty Perceptions
• Faulty Attributions
• Escalation of Commitment
Reinforcement Observation Goal
Orientation
Programmed Decision Accuracy
Nonprogrammed Decision Accuracy
Expertise
Explicit Knowledge
Tacit Knowledge
knowledge they gain, and how they use that knowledge to make decisions. Employees learn from a combination of reinforcement and observation, and that learning depends in part on whether they are learning-oriented or performance-oriented. Some of that learning results in increases in explicit knowledge, and some of that learning results in increases in tacit knowledge. Those two forms of knowledge, which combine to form an employee’s expertise, are then used in deci- sion making. If a given problem has been encountered before, decision making occurs in a more automatic, programmed fashion. If the problem is new or unfamiliar, nonprogrammed deci- sion making occurs and, in the best-case scenario, follows the rational decision-making model. Unfortunately, a number of decision-making problems can hinder the effectiveness of such deci- sions, including limited information, faulty perceptions, faulty attributions, and escalation of commitment.
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H O W I M P O R TA N T I S L E A R N I N G ?
Does learning have a significant impact on the two primary outcomes in our integrative model of OB—does it correlate with job performance and organizational commitment? Figure 8-7 summa- rizes the research evidence linking learning to job performance and organizational commitment. The figure reveals that learning does influence job performance. Why? The primary reason is that learning is moderately correlated with task performance. It’s difficult to fulfill one’s job duties if the employee doesn’t possess adequate levels of job knowledge. In fact, there are reasons to sug- gest that the moderate correlation depicted in the figure is actually an underestimate of learning’s importance. That’s because most of the research linking learning to task performance focuses on explicit knowledge, which is more practical to measure. It’s difficult to measure tacit knowledge because of its unspoken nature, but clearly such knowledge is relevant to task performance. Learn- ing seems less relevant to citizenship behavior and counterproductive behavior however, given that those behaviors are often less dependent on knowledge and expertise.
Figure 8-7 also reveals that learning is only weakly related to organizational commitment.60 In general, having higher levels of job knowledge is associated with slight increases in emotional attachment to the firm. It’s true that companies that have a reputation as organizations that value learning tend to receive higher-quality applicants for jobs.61 However, there’s an important distinc- tion between organizations that offer learning opportunities and employees who take advantage of those opportunities to actually gain knowledge. Moreover, it may be that employees with higher levels of expertise become more highly valued commodities on the job market, thereby reducing their levels of continuance commitment.
8.6 How does learning affect job performance and orga- nizational commitment?
FIGURE 8-7 Effects of Learning on Performance and Commitment
Job Performance
Learning
Organizational Commitment
Learning
Represents a strong correlation (around .50 in magnitude).
Represents a moderate correlation (around .30 in magnitude).
Represents a weak correlation (around .10 in magnitude).
Learning has a moderate positive e�ect on Performance. Employees who gain more knowledge and skill tend to have higher levels of Task Performance. Not much is known about the impact of learning on Citizenship Behavior and Counterproductive Behavior.
Learning has a weak positive e�ect on Commitment. Employees who gain more knowledge and skill tend to have slightly higher levels of A�ective Commitment. Not much is known about the impact of learning on Continuance Commitment or Normative Commitment.
Sources: G.M. Alliger, S.I. Tannenbaum, W. Bennett Jr., H. Traver, and A. Shotland, “A Meta-Analysis of the Relations among Training Criteria,” Personnel Psychology 50 (1997), pp. 341–58; J.A. Colquitt, J.A. LePine, and R.A. Noe, “Toward an Integrative Theory of Training Motivation: A Meta-Analytic Path Analysis of 20 Years of Research,” Journal of Applied Psychology 85 (2000), pp. 678–707; and J.P. Meyer, D.J. Stanley, L. Herscovitch, and L. Topolnytsky, “Affective, Continu- ance, and Normative Commitment to the Organization: A Meta-Analysis of Antecedents, Correlates, and Consequences,” Journal of Vocational Behavior 61 (2002), pp. 20–52.
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A P P L I C AT I O N : T R A I N I N G
How can organizations improve learning in an effort to boost employee expertise and, ulti- mately, improve decision making? One approach is to rely on training, which represents a sys- tematic effort by organizations to facilitate the learning of job-related knowledge and behavior. Organizations spent more than $150 billion on training in 2015, or $1,252 per learner. On average, employees receive 31.5 hours of training per year.62 A full discussion of all the types of training companies offer is beyond the scope of this section, but suffice it to say that companies are using many different methods to help their employees acquire explicit and tacit knowledge. Technological changes are altering the way those methods are delivered, as instructor-led class- room training has declined over the last decade (although still the majority at 51 percent) while online self-study programs and other technology-based forms of e-learning involve 41 percent of learning hours.63
In addition to traditional training experiences, companies are also heavily focused on knowledge transfer from their older, experienced workers to their younger employees. Some companies are using variations of behavior modeling training to ensure that employees have the ability to observe and learn from those in the company with significant amounts of tacit knowledge. For example, Herman Miller, a furniture manufacturer in Zeeland, Michigan, allows retiring employees to cut back on their hours during the two years immediately before retirement while maintaining their full benefits. This is a win–win as the retiree gets to ease into the emotional adjustment that comes with retirement, but the company gets to have the employees slowly pass on their knowledge and skills to those underneath them.64 Such sharing of information between workers is not always easy, especially in competitive or political environments. One recent study suggests that one key to helping the passing of tacit information between coworkers is trust.65 (See Chapter 7 for a more detailed description of how to foster trust.) One of the most difficult but most necessary periods of learning for employees is when they are sent outside their home country to work (referred to as expatriates). Ernst & Young has around 2,600 employees placed in international locations at any given time. The company uses “mobility experts,” partners who have been overseas, to help expatriates learn how to operate and live in these new cultures. The cost of that training is far less than an unsuccessful employee. Director Troy Dickerson says, “We want to ensure a strong return on investment for both the individual and Ernst & Young.”66
Another form of knowledge transfer that’s being used by companies more frequently, as described in our opening example, is social networking. One such example of this type of network- ing is communities of practice. Communities of practice are groups of employees who work together and learn from one another by collaborating over an extended period of time.67 Many companies such as PwC, John Deere, Shell, and Verizon are adopting this newer form of informal social learn- ing.68 Boeing has developed a formal “communities of excellence” program to distribute knowledge throughout the company as well as formal and informal mentoring programs throughout their engi- neering employee groups.69 Communities of practice introduce their own unique complications, but their potential for transferring knowledge through employees is significant.70
The success of these programs, as well as more traditional types of training, hinges on transfer of training. Transfer of training occurs when the knowledge, skills, and behaviors used on the job are maintained by the learner once training ends and generalized to the workplace once the learner returns to the job.71 Transfer of training can be fostered if organizations create a climate for transfer—an environment that can support the use of new skills. There are a variety of factors that can help organizations foster such a climate. The degree to which the trainee’s manager sup- ports the importance of the newly acquired knowledge and skills and stresses their application to the job is perhaps the most important factor. Peer support is helpful, because having multiple trainees learning the same material reduces anxiety and allows the trainees to share concerns and work through problems. Opportunities to use the learned knowledge are also crucial, because practice and repetition are key components of learning. Because companies have a huge stake in increasing and transferring knowledge within their employee base, creating a climate for the trans- fer of that knowledge is imperative to the success of formal learning systems.
8.7 What steps can orga- nizations take to foster learning?
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8.1 Learning is a relatively permanent change in an employee’s knowledge or skill that results from experience. Decision making refers to the process of generating and choosing from a set of alternatives to solve a problem. Learning allows employees to make better deci- sions by making those decisions more quickly and by being able to generate a better set of alternatives.
8.2 Employees gain both explicit and tacit knowledge as they build expertise. Explicit knowledge is easily communicated and available to everyone. Tacit knowledge, however, is something employees can learn only through experience.
8.3 Employees learn new knowledge through reinforcement and observation of oth- ers. That learning also depends on whether the employees are learning-oriented or performance-oriented.
8.4 Programmed decisions are decisions that become somewhat automatic because a person’s knowledge allows him or her to recognize and identify a situation and the course of action that needs to be taken. Many task-related decisions made by experts are programmed decisions. Nonprogrammed decisions are made when a problem is new, complex, or not recognized. Ideally, such decisions are made by following the steps in the rational decision- making model.
8.5 Employees are less able to translate their learning into accurate decisions when they struggle with limited information, faulty perceptions, faulty attributions, and escalation of commitment.
8.6 Learning has a moderate positive relationship with job performance and a weak positive relationship with organizational commitment.
8.7 Through various forms of training, companies can give employees more knowledge and a wider array of experiences that they can use to make decisions.
TA K E AWAY S
K E Y T E R M S
• Learning p. 234 • Decision making p. 234 • Expertise p. 234 • Explicit knowledge p. 234 • Tacit knowledge p. 235 • Contingencies of reinforcement p. 237 • Positive reinforcement p. 237 • Negative reinforcement p. 237 • Punishment p. 238 • Extinction p. 238 • Schedules of reinforcement p. 238 • Continuous reinforcement p. 238 • Fixed interval schedule p. 238 • Variable interval schedule p. 238 • Fixed ratio schedule p. 239 • Variable ratio schedule p. 239 • Social learning theory p. 239 • Behavioral modeling p. 239 • Learning orientation p. 241
• Performance-prove orientation p. 241 • Performance-avoid orientation p. 241 • Programmed decision p. 241 • Intuition p. 242 • Crisis situation p. 244 • Nonprogrammed decision p. 244 • Rational decision-making model p. 244 • Bounded rationality p. 246 • Satisficing p. 246 • Selective perception p. 247 • Projection bias p. 247 • Social identity theory p. 247 • Stereotypes p. 247 • Heuristics p. 247 • Availability bias p. 247 • Fundamental attribution error p. 249 • Self-serving bias p. 249 • Consensus p. 249 • Distinctiveness p. 249
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8.1 In your current or past workplaces, what types of tacit knowledge did experienced workers possess? What did this knowledge allow them to do?
8.2 Companies rely on employees with substantial amounts of tacit knowledge. Why do compa- nies struggle when these employees leave the organization unexpectedly? What can compa- nies do to help ensure that they retain tacit knowledge?
8.3 What does the term “expert” mean to you? What exactly do experts do that novices don’t?
8.4 Do you consider yourself to be a “rational” decision maker? For what types of decisions are you determined to be the most rational? What types of decisions are likely to cause you to behave irrationally?
8.5 Given your background, which of the decision-making biases listed in the chapter do you most struggle with? What could you do to overcome those biases to make more accurate decisions?
D I S C U S S I O N Q U E S T I O N S
One of the biggest challenges Bridgewater faces is the succession plan for the eventual departure of on-again, off-again CEO Ray Dalio. In March 2017, the Apple executive that was hired to potentially take over left after only 10 months on the job with Dalio posting online that “We mutually agree that he is not a cultural fit for Bridgewater.” It’s clear that Bridgewater’s culture of transparency, decision making, and fostered conflict and disagreement is not for everyone. Dalio is now halfway through what he has termed a 10-year succession plan and there appears to be no clear answer as to who is going to carry on the torch of the company’s “principles” and “radical transparency” (although Dalio has stated that he plans to remain at the company as a professional investor until he dies).
Dalio’s solution could very well be a form of artificial intelligence—a software system designed to automate management decisions that has been known within the company as the “Book of the Future” and most recently by its formal name: PriOS (Principles Operating System). PriOS, once complete, is designed to automate management within the firm based on its guiding 210 principles. How might this work? Well, first the software needs data about the decisions made in the firm and the people that make them, which it will get from numerous sources such as from the battery of personality and cognitive tests that every employee in the company takes. In addition, employees rate one another’s performance via an iPad application known as the “Dot Collector” on a daily basis. Information is also gathered via snap polls taken in meetings and staff take daily multiple-choice quizzes on management issues that occur within the company (correct and incorrect answers are logged over time).
These inputs are then processed by the operating system against Dalio’s Principles and ide- ally this results in direct information on whom to hire, fire, or employ in a specific situation, and even to provide detailed directions for employees on day-to-day tasks. Recent former employees have felt that working at Bridgewater has been like a giant experiment in human decision making. All employees have their own “baseball card” that anyone can see, which
C A S E : B R I D G E WAT E R A S S O C I AT E S
• Consistency p. 249 • Escalation of commitment p. 249 • Training p. 254 • Knowledge transfer p. 254
• Behavior modeling training p. 254 • Communities of practice p. 254 • Transfer of training p. 254 • Climate for transfer p. 254
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identifies their strengths and weaknesses on certain dimensions. Dalio plans for nearly 75 percent of the management decisions made at Bridgewater to be determined by PriOS within the next five years. In essence, the software will potentially be the embodiment of Ray Dalio after he is gone.
8.1 How would you like to work for a company whose management decisions are primarily made by a computer (potentially in the image of its founder)?
8.2 Could a different firm without such detailed, strong “principles” do the same thing as Bridgewater?
8.3 Do you see the creation of PriOS as a potential competitive advantage for Bridgewater or as something that won’t survive long term after Dalio is gone?
Sources: K. Burton and S. Kishan, “Behind the Bridgewater Shakeup: Ray Dalio’s Unusual Culture,” Bloomberg.com, March 1, 2017; J. Cassidy, “Mastering the Machine,” The New Yorker, July 25, 2011; Bridgewater Company websites: www.bridgewater.com and www.principles.com [accessed March 2017]; R. Copeland and B. Hope, “The World’s Largest Hedge Fund Is Building an Algorithmic Model from Its Employee’s Brains,” The Wall Street Journal, December 22, 2016; A. Stevenson and M. Goldstein, “At World’s Largest Hedge Fund, Sex, Fear, and Video Surveillance,” The New York Times, July 27, 2016, p. A1.
E X E R C I S E : D E C I S I O N - M A K I N G B I A S
The purpose of this exercise is to illustrate how decision making can be influenced by decision heuristics, availability bias, and escalation of commitment. The exercise has the following steps: 8.1 Answer each of the following problems. A. A certain town is served by two hospitals. In the larger hospital, about 45 babies are
born each day, and in the smaller hospital, about 15 babies are born each day. Although the overall proportion of boys is about 50 percent, the actual proportion at either hospi- tal may be greater or less than 50 percent on any given day. At the end of a year, which hospital will have the greater number of days on which more than 60 percent of the babies born were boys?
a. The large hospital b. The small hospital c. Neither—the number of days will be about the same (within 5 percent of each other)
B. Linda is 31 years of age, single, outspoken, and very bright. She majored in philosophy in college. As a student, she was deeply concerned with discrimination and other social issues and participated in antinuclear demonstrations. Which statement is more likely?
a. Linda is a bank teller. b. Linda is a bank teller and active in the feminist movement.
C. A cab was involved in a hit-and-run accident. Two cab companies serve the city: the Green, which operates 85 percent of the cabs, and the Blue, which operates the remain- ing 15 percent. A witness identifies the hit-and-run cab as Blue. When the court tests the reliability of the witness under circumstances similar to those on the night of the acci- dent, he correctly identifies the color of the cab 80 percent of the time and misidentifies it the other 20 percent. What’s the probability that the cab involved in the accident was Blue, as the witness stated?
D. Imagine that you face this pair of concurrent decisions. Examine these decisions and then indicate which choices you prefer.
Decision I: Choose between: a. A sure gain of $240 and b. A 25 percent chance of winning $1,000 and a 75 percent chance of winning nothing
Decision II: Choose between: a. A sure loss of $750 and b. A 75 percent chance of losing $1,000 and a 25 percent chance of losing nothing
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Decision III: Choose between: a. A sure loss of $3,000 and b. An 80 percent chance of losing $4,000 and a 20 percent chance of losing nothing
E. You’ve decided to see a Broadway play and have bought a $150 ticket. As you enter the theater, you realize you’ve lost your ticket. You can’t remember the seat number, so you can’t prove to the management that you bought a ticket. Would you spend $150 for a new ticket?
F. You’ve reserved a seat for a Broadway play, for which the ticket price is $150. As you enter the theater to buy your ticket, you discover you’ve lost $150 from your pocket. Would you still buy the ticket? (Assume you have enough cash left to do so.)
G. Imagine you have operable lung cancer and must choose between two treatments: surgery and radiation. Of 100 people having surgery, 10 die during the operation, 32 (including those original 10) are dead after 1 year, and 66 are dead after 5 years. Of 100 people having radiation therapy, none dies during treatment, 23 are dead after 1 year, and 78 after 5 years. Which treatment would you prefer?
8.2 Your instructor will give you the correct answer to each problem. Class discussion, whether in groups or as a class, should focus on the following questions: How accurate were the decisions you reached? What decision-making problems were evident in the decisions you reached? Consider especially where decision heuristics, availability, and escalation of com- mitment may have influenced your decisions. How could you improve your decision making to make it more accurate?72
8.1 Weiss, H.M. “Learning Theory and Industrial and Organizational Psychology.” In Hand- book of Industrial and Organizational Psychol- ogy, ed. M.D. Dunnette and L.M. Hough. Palo Alto, CA: Consulting Psychologists Press, 1990, pp. 75–169.
8.2 Tai, B., and N.R. Lock- wood. “Organizational Entry: Onboarding, Orientation, and Socialization.” SHRM Research Paper (n.d.), http://www.shrm.org.
8.3 Source: Buford, B. Heat. New York: Knopf, 2006, pp.49–50.
8.4 Ericsson, K.A. “An Introduction to Cam- bridge Handbook of Expertise and Expert Performance: Its
Development, Organi- zation, and Content.” In The Cambridge Handbook of Expertise and Expert Performance, ed. K.A. Ericsson; N. Charness; P.J. Feltovich; and R.R. Hoffman. New York: Cambridge University Press, 2006, pp. 3–19.
8.5 Ericsson, K.A., and A.C. Lehmann. “Experts and Excep- tional Performance: Evidence of Maximal Adaptation to Task Constraints.” Annual Review of Psychology 47 (1996), pp. 273–305.
8.6 Brockmann, E.N., and W.P. Anthony. “Tacit Knowledge and Strate- gic Decision Making.” Group & Organizational Management 27,
December 2002, pp. 436–55.
8.7 Wagner, R.K., and R.J. Sternberg. “Practi- cal Intelligence in Real-World Pursuits: The Role of Tacit Knowledge.” Journal of Personality and Social Psychology 4 (1985), pp. 436–58.
8.8 Wah, L. “Making Knowledge Stick.” Management Review 88 (1999), pp. 24–33.
8.9 Eucker, T.R. “Under- standing the Impact of Tacit Knowledge Loss.” Knowledge Management Review, March 2007, pp. 10–13.
8.10 McAdam, R.; B. Mason; and J. McCrory. “Explor- ing the Dichotomies
E N D N OT E S
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Within the Tacit Knowledge Literature: Towards a Process of Tacit Knowing in Orga- nizations.” Journal of Knowledge Management 11 (2007), pp. 43–59.
8.11 Lawson, C., and E. Lorenzi. “Collective Learning, Tacit Knowl- edge, and Regional Innovative Capacity.” Regional Studies 21 (1999), pp. 487–513.
8.12 Bou-Llusar, J.C., and M. Segarra-Ciprés. “Strategic Knowledge Transfer and Its Implications for Com- petitive Advantage: An Integrative Conceptual Framework.” Journal of Knowledge Management 10 (2006), pp. 100–12; Ihrig, M., and I. MacMillan. “Managing Your Mission-Critical Knowledge.” Harvard Business Review 93 (2015), pp. 80–87; Nonaka, I. “The Knowledge-Creating Company.” Harvard Business Review 69 (1991), pp. 96–104; and Nonaka, I. “A Dynamic Theory of Organizational Knowledge Creation.” Organizational Science 5 (1994), pp. 14–37.
8.13 Luthans, F., and R. Kreitner. Organizational Behavior Modification and Beyond. Glenview, IL: Scott, Foresman, 1985.
8.14 Latham, G.P., and V.L. Huber. “Schedules of Reinforcement: Les- sons from the Past and Issues for Future.” Jour- nal of Organizational
Behavior Management 13 (1992), pp. 125–49.
8.15 Pinder, C. Work Motiva- tion in Organizational Behavior. New York: Psychology Press, 2008.
8.16 Luthans and Kreitner, Organizational Behavior Modification.
8.17 Pinder, Work Motivation.
8.18 Alter, A. Irresistable: The Rise of Addictive Technology and the Business of Keeping Us Hooked. New York: Penguin, 2017.
8.19 Pinder, Work Motivation.
8.20 Bandura, A. Social Foundations of Thought and Action: A Social Cognitive Theory. Englewood Cliffs, NJ: Prentice Hall, 1986.
8.21 Weiss, “Learning Theory.”
8.22 Pescuric, A., and W.C. Byham. “The New Look of Behavior Modeling.” Training & Development, July 1996, pp. 24–30.
8.23 Trees, L. “Why Your KM strategy Should Include Mentoring.” KM World, September 2016, pp. 5–7.
8.24 Mulcahy, A. “How I Did It: Xerox’s Former CEO on Why Succes- sion Shouldn’t Be a Horse Race.” Harvard Business Review, Octo- ber 2010, pp. 47–51; and Gelles, D. “Burns to Replace Mulcahy at Xerox.” Financial Times, May 22, 2009, p. 16.
8.25 Source: Eliison, S. “Lowell McAdam: Seidenberg’s Air’ Apparent.” Fortune, October 20, 2010.
8.26 Kish-Gephart, J.J.; D.A. Harrison; L.K. Treviño; and L. Klebe. “Bad Apples, Bad Cases, and Bad Barrels: Meta- Analytic Evidence about Sources of Unethical Decisions at Work.” Jour- nal of Applied Psychology 95 (2010), pp. 1–31.
8.27 Sims, R.R., and J. Brinkmann. “Leaders as Moral Role Models: The Case of John Gutfreund at Salomon Brothers.” Journal of Business Ethics 35 (2002), pp. 327–40.
8.28 Biron, M., and P. Bamberger. “Aversive Workplace Conditions and Absenteeism: Taking Referent Group Norms and Supervisor Account into Account.” Journal of Applied Psychology 97 (2012), pp. 901–12; and Mitch- ell, M.S., and M.L. Ambrose. “Employee’s Behavioral Reactions to Supervisor Aggression: An Examination of Individual and Situa- tional Factors.” Journal of Applied Psychology 97 (2012), pp. 1148–70.
8.29 VandeWalle, D. “Devel- opment and Validation of a Work Domain Goal Orientation Instrument.” Educa- tional and Psychological Measurement 8 (1997), pp. 995–1015.
8.30 Payne, S.C.; S. Youngcourt; and J.M.
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Beaubien. “A Meta- Analytic Examination of the Goal Orientation Nomological Net.” Journal of Applied Psychology 92 (2007), pp. 128–50.
8.31 Ibid.
8.32 Cannon-Bowers, J.A.; L. Rhodenizer; E. Salas; and C. Bowers. “A Framework for Understanding Pre- Practice Conditions and Their Impact on Learning.” Personnel Psychology 51 (1998), pp. 291–320.
8.33 Mesmer-Magnus, J., and C. Viswesvaran. “The Role of Pre- Training Interventions in Learning: A Meta- Analysis and Integra- tive Review.” Human Resource Management Review 20 (2010), pp. 261–82.
8.34 Dane, E., and M.G. Pratt. “Exploring Intuition and Its Role in Managerial Decision Making.” Academy of Management Review 32 (2007), pp. 33–54; and Hayashi, A.M. “When to Trust Your Gut.” Harvard Business Review, February 2001, pp. 59–65.
8.35 Hogarth, R.M. “Intu- ition: A Challenge for Psychological Research on Decision Making.” Psychological Inquiry 21 (2010), pp. 338–53.
8.36 March, J.G. A Primer on Decision Making. New York: The Free Press, 1994.
8.37 Dane, E.; K.W. Rockmann; and M.G. Pratt. “When Should I Trust My Gut? Linking Domain Expertise to Intuitive Decision- Making Effectiveness.” Organizational Behavior and Human Decision Processes 119 (2012), pp. 187–94.
8.38 Seeger, M.W.; T.L. Sellnow; and R.R. Ulmer. “Communica- tion, Organization and Crisis.” Communication Yearbook 21 (1998), pp. 231–75.
8.39 Weick, K.E., and K.M. Sutcliffe. Managing the Unexpected: Resilient Performance in an Age of Uncertainty, 2nd ed. San Francisco: Jossey- Bass, 2007.
8.40 Klein, G. Sources of Power. Cambridge, MA: MIT Press, 1999.
8.41 Weick, K.E. “Manage- rial Thought in the Context of Action.” In The Executive Mind, ed. S. Srivasta. San Francisco: Jossey-Bass, 1983, pp. 221–42; Weick and Sutcliffe, Managing the Unex- pected; and Klein, G. The Power of Intuition. New York: Currency Doubleday, 2003.
8.42 Simon, H.A. “A Behavioral Model of Rational Choice.” Quarterly Journal of Economics 69 (1955), pp. 99–118.
8.43 Simon, H.A. “Rational Decision Making
in Organizations.” American Economic Review 69 (1979), pp. 493–513.
8.44 March, J.G., and H.A. Simon. Organizations. New York: Wiley, 1958.
8.45 Ibid.
8.46 Hogg, M.A., and D.J. Terry. “Social Identity and Self-Categorization Process in Organiza- tional Contexts.” Acad- emy of Management Review 25, January 2000, pp. 121–40.
8.47 Judd, C.M., and B. Park. “Definition and Assessment of Accu- racy in Social Stereotypes.” Psycho- logical Review 100, January 1993, pp. 109–28.
8.48 Ashforth, B.E., and F. Mael. “Social Identity Theory and the Orga- nization.” Academy of Management Review 14 (1989), pp. 20–39; and Howard, J.A. “Social Psychology of Identi- ties.” Annual Review of Sociology 26 (2000), pp. 367–93.
8.49 McGirt, E. “Google Searches Its Soul.” Fortune, February 1, 2017, pp. 48–56; and Society for Human Resource Management. “Diversity Training,” 2014, http://www.shrm .org/diversity.
8.50 Kahneman, D.; P. Slovic; and A. Tversky, eds. Judgment under Uncertainty: Heuristics and Biases. Cambridge,
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UK: Cambridge University Press, 1982.
8.51 Source: Kahneman, D., and A. Tversky. “On the Psychol- ogy of Prediction.” Psychological Review 80(1973),pp.237–51.
8.52 Smerd, J. “In Worker’s Heads.” Workforce Man- agement, June 22, 2009, pp. 34–39.
8.53 Ross, L. “The Intuitive Psychologist and His Shortcomings: Distor- tions in the Attribution Process.” In Advances in Experimental Social Psychology, ed. L. Berkowitz. New York: Academic Press, 1977, pp. 173–220. See also Jones, E.E., and V.A. Harris. “The Attribu- tion of Attitudes.” Journal of Experimental Social Psychology 3 (1967), pp. 1–24.
8.54 Kelley, H.H. “The Processes of Casual Attribution.” American Psychologist 28 (1973), pp. 107–28; and Kelley, H.H. “Attribution in Social Interaction.” In Attribution: Perceiving the Causes of Behavior, ed. E. Jones. Morristown, NJ: General Learning Press, 1972.
8.55 Staw, B.M., and J. Ross. “Behavior in Escalation Situations: Antecedents, Prototypes, and Solu- tions.” In Research in Organizational Behavior, Vol. 9, ed. L.L. Cummings and B.M. Staw. Greenwich, CT: JAI Press, 1987, pp. 39–78; and Staw, B.M.
“Knee-Deep in the Big Muddy: A Study of Escalating Commitment to a Chosen Course of Action.” Organizational Behavior and Human Performance 16 (1976), pp. 27–44.
8.56 Brockner, J. “The Esca- lation of Commitment to a Failing Course of Action: Toward Theoretical Progress.” Academy of Manage- ment Review 17 (1992), pp. 39–61; and Staw, B.M. “The Escalation of Commitment: An Update and Appraisal.” In Organizational Decision Making, ed. Z. Shapira. New York: Cambridge University Press, 1997.
8.57 Conlon, D.E., and H. Garland. “The Role of Project Comple- tion Information in Resource Allocation Decisions.” Academy of Management Journal 36 (1993), pp. 402–13; and Moon, H. “Looking Forward and Looking Back: Integrating Completion and Sunk-Cost Effects within an Escalation of Commitment Progress Decision.” Journal of Applied Psychology 86 (2001), pp. 104–13.
8.58 Johnson, K. “Denver Airport to Mangle Last Bag.” The New York Times, August 27, 2005.
8.59 Molden, D.C., and C.M. Hui. “Promoting De-Escalation of Com- mitment: A Regulatory- Focus Perspective on Sunk Costs.”
Psychological Science 22 (2011), pp. 8–12.
8.60 Alliger, G.M.; S.I. Tan- nenbaum; W. Bennett Jr.; H. Traver; and A. Shotland. “A Meta- Analysis of the Relations among Training Crite- ria.” Personnel Psychology 50 (1997), pp. 341–58; Colquitt, J.A.; J.A. LePine; and R.A. Noe. “Toward an Integrative Theory of Training Moti- vation: A Meta-Analytic Path Analysis of 20 Years of Research.” Jour- nal of Applied Psychology 85 (2000), pp. 678–707; and Meyer, J.P.; D.J. Stanley; L. Herscovitch; and L. Topolnytsky. “Affective, Continuance, and Normative Commit- ment to the Organiza- tion: A Meta-Analysis of Antecedents, Correlates, and Consequences.” Journal of Vocational Behavior 61 (2002), pp. 20–52.
8.61 Averbrook, J. “Con- necting CLOs with the Recruiting Process.” Chief Learning Officer 4 (2005), pp. 24–27.
8.62 Ho, M. “2016 State of the Industry Report: Investment in Learn- ing Increases for 4th Straight Year.” TD: Talent Development, November 2016, pp. 30–35.
8.63 Ibid.
8.64 Milligan, S. “Wisdom of the Ages.” HRMaga- zine, November 2014, pp. 22–27.
8.65 Holste, J.S., and D. Fields. “Trust and Tacit
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Knowledge Sharing and Use.” Journal of Knowledge Management 14 (2010), pp. 128–40.
8.66 Source: Ladika, S. “Shipping and Handling: Picking the Right People to Head Overseas Is Paramount.” Workforce Management, March 1.
8.67 Retna, K.S., and P.T. Ng. “Communities of Practice: Dynamics and Success Factors.” Lead- ership and Organization Development Journal 32 (2011), pp. 41–59; and Sauve, E. “Informal Knowledge Transfer.” T + D 61 (2007), pp. 22–24.
8.68 Overton, L. “Learning Innovators.” E.learning Age, July/August 2014, pp. 12–14; Ligdas, N. “Using a Wiki Portal to Support Organizational Excellence at Shell.” Knowledge Management Review, October 2009, p. 1; and Allan, B., and D. Lewis. “Virtual
Learning Communities as a Vehicle for Workforce Develop- ment: A Case Study.” Journal of Workplace Learning 18 (2006), pp. 367–83.
8.69 Trees, L. “Mentoring as a Springboard for Networking and Col- laboration.” KMWorld, November–December 2016, pp. 280–83.
8.70 Pyrko, I., V. Dorfler, and C. Eden. “Thinking Together: What Makes Communities of Prac- tice Work?” Human Relations 70 (2016), pp. 389–409; and Noe, R.A. Employee Training and Development. New York: Irwin/ McGraw-Hill, 1999.
8.71 Tracey, J.B.; S.I. Tan- nenbaum; and M.J. Kavanaugh. “Applying Trained Skills on the Job: The Importance of the Work Environ- ment.” Journal of Applied Psychology 80 (1995), pp. 239–52.
8.72 Ivancevich, J.; R. Konopaske; and M. Matteson. Organi- zational Behavior and Management, 7th ed. New York: McGraw- Hill, 2005. Reprinted with permission of The McGraw-Hill Com- panies. The original exercises are based on the following sources: (1) Tversky, A., and D. Kahneman. “Rational Choice and the Framing of Decisions.” Journal of Business 59 (1986), pp. 251–78; (2) Tversky, A., and D. Kahneman. “The Framing of Decisions and the Psy- chology of Choice.” Science 211 (1981), pp. 453–58; (3) Tversky, A., and D. Kahne- man. “Extensional vs. Intuitive Reasoning: The Conjunction Fallacy in Probability Judgment.” Psychological Review 90 (1983), pp. 293–315; and (4) McKean, K. “Decisions, Decisions.” Discovery Magazine, June 1985.
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CHAPTER 9 Personality and Cultural Values
CHAPTER 10 Ability
INDIVIDUAL CHARACTERISTICS
3 P A R T
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9
LEARNING GOALS
9.1 What is personality? What are cultural values? 9.2 What are the “Big Five”? 9.3 Is personality driven by nature or by nurture? 9.4 What taxonomies can be used to describe personality, other than the Big Five? 9.5 What taxonomies can be used to describe cultural values? 9.6 How does personality affect job performance and organizational commitment? 9.7 Are personality tests useful tools for organizational hiring?
After reading this chapter, you should be able to answer the following questions:
Personality and Cultural Values
INDIVIDUAL OUTCOMES
INDIVIDUAL MECHANISMS
INDIVIDUAL CHARACTERISTICS
ORGANIZATIONAL MECHANISMS
Organizational Culture
Organizational Structure
Teams: Processes &
Communication
Motivation
Trust, Justice, & Ethics
Teams: Characteristics &
Diversity Learning &
Decision Making
Ability
Personality & Cultural Values
Stress
Leadership: Power &
Negotiation
Job Satisfaction
Leadership: Styles &
Behaviors
Organizational Commitment
Job Performance
GROUP MECHANISMS
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O ne thousand seven hundred and twenty-eight play- ers. Fifty-two managers. That’s how many people represented the Chicago Cubs between 1908—
their prior World Series title—and 2016—when their long drought ended. That 1908 team had played in the era of Mark Twain, Florence Nightingale, and the Ottoman Empire. How did the franchise break through after all that time? Much of the credit can be given to a new owner, a new pres- ident of baseball operations, and a focus on personality.
The new owner is Tom Ricketts, the director of TD Ameri- trade Holding Corporation. The new president of baseball operations is Theo Epstein, previously the general manager of the Boston Red Sox, and assembler of a two-time World Series champion in that city. Ricketts had been impressed with Epstein’s personality as they discussed a position with the Cubs. “He was the kind of person who treats people with respect,” Ricketts noted. “He was honest and candid about his successes and failures.” Epstein is also enor- mously curious, a trait fueled by a family rule where every minute watching baseball had to be matched by time read- ing books. “A double header was a lot of reading,” recalled
Epstein. The Cubs manager, Joe Maddon, offered his own take on Epstein’s personality: “He’s brilliant, he’s sabermetri- cally inclined, he’s old school, he understands old-school scouting techniques, he understands the game, but of all the guys I’ve met, he’s more empathetic than all of them. He understands people. And he feels what they feel.” Much like how books fueled his curiosity, Epstein attributes that empa- thy to his family and his upbringing. “Maybe it’s part of being a twin. I’m a twin. My mom’s a twin. My grandfather’s a twin.”
Regardless of where his traits came from, Epstein went about retooling the Cubs with his own emphasis on per- sonality. He wanted players with the right “makeup”—who would create the proper “ethos” in the clubhouse. Some of that emphasis came from the failures of his most recent Red Sox clubs, but it was also a simple evolution of his own views on managing people. The word that he most often uses is “character”—a sense that players will work hard, do the right thing, fit into the team concept, and overcome adversity. “We are not going to compromise character for talent,” Epstein vowed. “We’re the Cubs. We’re going to have both. Talent and character.”
CHICAGO CUBS
©Jonathan Daniel/Getty Images
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P E R S O N A L I T Y A N D C U LT U R A L VA LU E S
As the opening illustrates, a company can gain from paying close attention to the personal- ity of its employees when making decisions about hiring and development. Personality refers to the structures and propensities inside people that explain their characteristic patterns of thought, emotion, and behavior.1 Personality creates people’s social reputations—the way they are perceived by friends, family, coworkers, and supervisors.2 In this way, personality captures what people are like. That’s in contrast to ability, the subject of Chapter 10, which captures what people can do. Although we sometimes describe people as having “a good personality,” personality is actually a collection of multiple traits. Traits are defined as recurring regulari- ties or trends in people’s responses to their environment.3 Adjectives such as “responsible,” “easygoing,” “polite,” and “reserved” are examples of traits that can be used to summarize someone’s personality.
As we’ll describe later, personality traits are a function of both your genes and your environ- ment. One important piece of the environmental part of that equation is the culture in which you were raised. Cultural values are defined as shared beliefs about desirable end states or modes of conduct in a given culture.4 You can think of cultural values as capturing what cultures are like. Adjectives such as “traditional,” “informal,” “risk averse,” or “assertive” are all examples of values that can be used to summarize a nation’s culture. Cultural values can influence the development of people’s personality traits, as well as how those traits are expressed in daily life. In this way, a responsible person in the United States may act somewhat differently than a responsible person in China, just as an easygoing person in France may act somewhat differently than an easygoing person in Indonesia.
H O W C A N W E D E S C R I B E W H AT E M P LOY E E S A R E L I K E ?
We can use personality traits and cultural values to describe what employees are like. For example, how would you describe your first college roommate to one of your classmates? You’d start off using certain adjectives—maybe the roommate was funny and outgoing or maybe frugal and orga- nized. Of course, it would take more than a few adjectives to describe your roommate fully. You could probably go on listing traits for several minutes, maybe even coming up with 100 traits or more. Although 100 traits may sound like a lot, personality researchers note that the third edition of Webster’s Unabridged Dictionary contained 1,710 adjectives that can be used to describe some- one’s traits!5 Was your roommate abrasive, adulterous, agitable, alarmable, antisocial, arbitrative, arrogant, asocial, audacious, aweless, and awkward? We hope not!
T H E B I G F I V E TA XO N O M Y With 1,710 adjectives, you might be worrying about the length of this chapter (or the difficulty of your next exam!). Fortunately, it turns out that most adjectives are variations of five broad dimensions or “factors” that can be used to summarize our personalities.6 Those five personality dimensions include conscientiousness, agreeableness, neuroticism, openness to experience, and extraversion. Collectively, these dimensions have been dubbed the Big Five.7 Figure 9-1 lists the traits that can be found within each of the Big Five dimensions. We acknowledge that it can be hard to remember the particular labels for the Big Five dimensions, and we wish there was some acronym that could make the process easier. . . .
Would you like to see what your Big Five profile looks like? Our OB Assessments feature will show you where you stand on each of the five dimensions. After you’ve gotten a feel for your personality profile, you might be wondering about some of the following questions: How does personality develop? Why do people have the traits that they possess? Will those traits change
9.1 What is personality? What are cultural values?
9.2 What are the “Big Five”?
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over time? All of these questions are variations on the “nature vs. nurture” debate: Is personality a function of our genes, or is it something that we develop as a function of our experiences and environment? As you might guess, it’s sometimes difficult to tease apart the impact of nature and nurture on personality. Let’s assume for a moment that you’re especially extraverted and so are your parents. Does this mean you’ve inherited their “extraversion gene”? Or does it mean that you observed and copied their extraverted behavior during your childhood (and were rewarded with praise for doing so)? It’s impossible to know, because the effects of nature and nurture are acting in combination in this example.
One method of separating nature and nurture effects is to study identical twins who’ve been adopted by different sets of parents at birth. For example, the University of Minnesota has been conducting studies of pairs of identical twins reared apart for several decades.8 Such studies find, for example, that extraversion scores tend to be significantly correlated across pairs of identical twins.9 Such findings can clearly be attributed to “nature,” because identical twins share 100 percent of their genetic material, but cannot be explained by “nurture,” because the twins were raised in different environments. A review of several different twin studies concludes that genes have a significant impact on people’s Big Five profile. More specifically, 49 percent of the variation in extraversion is accounted for by genetic differences.10 The genetic impact is somewhat smaller for the rest of the Big Five: 45 percent for openness, 41 percent for neuroticism, 38 percent for con- scientiousness, and 35 percent for agreeableness.
Another method of examining the genetic basis of personality is to examine changes in per- sonality traits over time. Longitudinal studies require participants to complete personality assess- ments at multiple time periods, often separated by several years. If personality has a strong genetic component, then people’s Big Five profiles at, say, age 21 should be very similar to their profiles at
Sources: G. Saucier, “Mini-Markers: A Brief Version of Goldberg’s Unipolar Big-Five Markers,” Journal of Personality Assessment 63 (1994), pp. 506–16; L.R. Goldberg, “The Development of Markers for the Big-Five Factor Structure,” Psychological Assessment 4 (1992), pp. 26–42; R.R. McCrae and P.T. Costa Jr., “Validation of the Five-Factor Model of Per- sonality across Instruments and Observers,” Journal of Personality and Social Psychology 52 (1987), pp. 81–90; and C.M. Gill and G.P. Hodgkinson, “Development and Validation of the Five-Factor Model Questionnaire (FFMQ): An Adjectival- Based Personality Inventory for Use in Occupational Settings,” Personnel Psychology 60 (2007), pp. 731–66.
FIGURE 9-1 Trait Adjectives Associated with the Big Five
• Dependable • Organized • Reliable • Ambitious • Hardworking • Persevering
• Kind • Cooperative • Sympathetic • Helpful • Courteous • Warm
• Nervous • Moody • Emotional • Insecure • Jealous • Unstable
• Curious • Imaginative • Creative • Complex • Refined • Sophisticated
• Talkative • Sociable • Passionate • Assertive • Bold • Dominant
• Quiet • Shy • Inhibited • Bashful • Reserved • Submissive
• Uninquisitive • Conventional • Conforming • Simple • Unartistic • Traditional
• Calm • Steady • Relaxed • At ease • Secure • Contented
• Critical • Antagonistic • Callous • Selfish • Rude • Cold
• Careless • Sloppy • Ine�cient • Negligent • Lazy • Irresponsible
NOT
C A N O E
NOT NOT NOT NOT
Conscientiousness Agreeableness Neuroticism Openness Extraversion
9.3 Is personality driven by nature or by nurture?
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OB ASSESSMENTS
THE BIG FIVE What does your personality profile look like? This assessment is designed to measure the five major dimensions of personality: conscientiousness (C), agreeableness (A), neuroticism (N), openness to experience (O), and extraversion (E). Listed below are phrases describing people’s behaviors. Please write a number next to each statement that indicates the extent to which it accurately describes you. Answer each question using the response scale provided. Then subtract your answers to the boldfaced questions from 6, with the difference being your new answer for those questions. For example, if your original answer for question 6 was “2,” your new answer is “4” (6–2). (Instructors: Assessments on locus of control, collectivism, and power distance can be found in the PowerPoints in the Connect Library’s Instructor Resources and in the Connect assignments for this chapter.)
1 VERY
INACCURATE
2 MODERATELY INACCURATE
3 NEITHER
INACCURATE NOR ACCURATE
4 MODERATELY
ACCURATE
5 VERY ACCURATE
1. I am the life of the party.
2. I sympathize with others’ feelings.
3. I get chores done right away.
4. I have frequent mood swings.
5. I have a vivid imagination.
6. I don’t talk a lot.
7. I am not interested in other people’s problems.
8. I often forget to put things back in their proper place.
9. I am relaxed most of the time.
10. I am not interested in abstract ideas.
11. I talk to a lot of different people at parties.
12. I feel others’ emotions.
13. I like order.
14. I get upset easily.
15. I have difficulty understanding abstract ideas.
16. I keep in the background.
17. I am not really interested in others.
18. I make a mess of things.
19. I seldom feel blue.
20. I do not have a good imagination.
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SCORING AND INTERPRETATION
Conscientiousness: Sum up items 3, 8, 13, and 18. _______ Agreeableness: Sum up items 2, 7, 12, and 17. _______ Neuroticism: Sum up items 4, 9, 14, and 19._______ Openness to Experience: Sum up items 5, 10, 15, and 20. _______ Extraversion: Sum up items 1, 6, 11, and 16. _______
Now chart your scores in the figure below to see whether you are above or below the norm for each dimension.
Source: M.B. Donnellan, F.L. Oswald, B.M. Baird, and R.E. Lucas, “The Mini-IPIP Scales: Tiny-Yet- Effective Measures of the Big Five Factors of Personality,” Psychological Assessment 18 (2006), pp. 192– 203. American Psychological Association.
4 5 6 7 8 9
10 11
12 13 14 15 16 17 18 19
20
C A N O E
Norms
age 50. Figure 9-2 summarizes the results of 92 studies that assessed personality changes in more than 50,000 people.11 The figure notes personality changes across seven time periods, including teenage years (age 10–18), college years (18–22), and people’s 20s, 30s, 40s, 50s, and 60s. The y-axis expresses changes in personality in standard deviation terms, ranging from +1 (one stan- dard deviation increase on a given dimension) to −1 (one standard deviation decrease on a given dimension). In standard deviation terms, a change of .20 is generally considered small, a change of .50 is generally considered medium, and a change of .80 is generally considered large.12
Figure 9-2 reveals that extraversion typically remains quite stable throughout a person’s life. Openness to experience also remains stable, after a sharp increase from the teenage years to college age. The stability of those two dimensions makes sense because extraversion and open- ness are most dependent on genes.13 The other three dimensions, however, change quite signifi- cantly over a person’s life span. For example, Figure 9-2 shows that people get more conscientious as they grow older.14 In addition, people become more agreeable and less neurotic over time. Although those changes may be encouraging if you dislike your own personal Big Five profile, it’s important to realize that any changes in personality are very gradual. Consider this question: Can you detect any personality changes in your closest friends? Chances are you can’t, unless you’ve known those friends for a period of several years. That long-term lens is needed to spot gradual fluctuations in Big Five levels. The sections that follow provide more detail about each of the Big Five dimensions.
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CONSCIENTIOUSNESS As shown in Figure 9-1, conscientious people are dependable, orga- nized, reliable, ambitious, hardworking, and persevering.15 It’s difficult, if not impossible, to envi- sion a job in which those traits will not be beneficial.16 That’s not a claim we make about all of the Big Five because some jobs require high levels of agreeableness, extraversion, or openness, while others demand low levels of those same traits. We don’t want to spoil the “how important is personality?” discussion that concludes this chapter, but suffice it to say that conscientiousness has the biggest influence on job performance of any of the Big Five. Of course, the key question therefore becomes: Why is conscientiousness so valuable?
One reason can be found in the general goals that people prioritize in their working life. Conscientious employees prioritize accomplishment striving, which reflects a strong desire to accomplish task-related goals as a means of expressing personality.17 People who are “accom- plishment strivers” have a built-in desire to finish work tasks, channel a high proportion of their efforts toward those tasks, and work harder and longer on task assignments. As evidence of their accomplishment-striving nature, one research study showed that conscientious salespeople set higher sales goals for themselves than unconscientious salespeople and were more committed to meeting those goals.18 Another study of salespeople showed that conscientious salespeople’s organizational skills were particularly valuable during their first year of employment, and their ambitious nature became more critical as they gained tenure and experience.19
A third research study provides particularly compelling evidence regarding the benefits of con- scientiousness.20 The study used data from the University of California–Berkeley’s Intergenera- tional Studies Center, which collected data about a set of children in the late 1920s and early 1930s. Those researchers gathered personality data using interviews and assessments of the chil- dren by trained psychologists. Follow-up studies collected data on the same sample as they reached early adulthood, middle age, and late adulthood. This last time period included assessments of career success, which included ratings of annual income and occupational prestige. The results
Source: Adapted from B.W. Roberts, K.E. Walton, and W. Viechtbauer, “Patterns of Mean-Level Change in Personality Traits across the Life Course: A Meta-Analysis of Longitudinal Studies,” Psychological Bulletin 132 (2006), pp. 1–25.
FIGURE 9-2 Changes in Big Five Dimensions over the Life Span
−1
0
1
10-18 18-22 22-30 30-40 40-50 50-60 60-70
Age Ranges
S ta
n d
a rd
iz e
d M
e a
n C
h a
n g
e s
in P
e rs
o n
a lit
y
Conscientiousness
Agreeableness
Neuroticism
Openness
Extraversion
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of the study showed that childhood conscien- tiousness was strongly correlated with ratings of career success five decades later! In fact, those conscientiousness effects were roughly twice as strong as the effects of the other Big Five dimensions.
Such findings show that it pays to be con- scientious; other research even suggests that conscientiousness is good for your health. For example, one study gathered data about the conscientiousness of 1,528 children in the early 1920s.21 Data on health-relevant behav- iors were then gathered in 1950 for 1,215 of the original participants. By 1986, 419 of the participants had died and 796 were still living. The results of the study revealed that childhood conscientiousness was negatively related to mortality, including death from injuries, death from cardiovascular disease, and death from cancer. Why did conscientious participants live longer? The study also showed that conscientiousness was nega- tively related to alcohol consumption and smoking during adulthood. Other research has shown that conscientious people are less likely to abuse drugs, more likely to take preventive steps to remain healthy, and less likely to perform risky behaviors as a driver or pedestrian.22
AGREEABLENESS Agreeable people are warm, kind, cooperative, sympathetic, helpful, and courteous. Agreeable people prioritize communion striving, which reflects a strong desire to obtain acceptance in personal relationships as a means of expressing personality. Put differently, agreeable people focus on “getting along,” not necessarily “getting ahead.”23 Unlike conscien- tiousness, agreeableness is not related to performance across all jobs or occupations.24 Why not? The biggest reason is that communion striving is beneficial in some positions but detrimental in others. For example, managers often need to prioritize the effectiveness of the unit over a desire to gain acceptance. In such cases, effective job performance may demand being disagreeable in the face of unreasonable requests or demands.
Of course, there are some jobs in which agreeableness can be beneficial. The most obvious example is service jobs—jobs in which the employee has direct, face-to-face, or verbal contact with a customer. How many times have you encountered a customer service person who is cold, rude, or antagonistic? Did you tend to buy the company’s product after such experiences? Research suggests that agreeable employees have stronger customer service skills.25 One reason for their effectiveness in customer service environments is that they’re reluctant to react to conflict with criticism, threats, or manipulation.26 Instead, they tend to react to conflict by walking away, adopt- ing a “wait-and-see” attitude, or giving in to the other person.
One study provides unique insights into the effects of agreeableness. The study used a varia- tion of “lived day analysis,” where a portion of a participant’s daily routine is recorded and ana- lyzed.27 Ninety-six undergraduates completed assessments of the Big Five personality dimensions before being fitted with a digital recorder and an electronic microphone that could be clipped to their shirt collar. The microphone recorded 30 seconds of footage at 12-minute intervals over the course of two weekdays, with participants unable to track when footage was actually being recorded. Trained coders then rated the sounds and conversations recorded on the microphone. The results of the study revealed a number of interesting expressions of agreeableness. Agreeable participants were significantly less likely to be at home in their apartment during recordings; instead, they spent more time in public places. They were also less likely to use swear words and more likely to use words that conveyed personal rapport during conversations. For more on agree- ableness (along with some other Big Five dimensions), see our OB on Screen feature.
EXTRAVERSION Extraverted people are talkative, sociable, passionate, assertive, bold, and dominant (in contrast to introverts, who are quiet, shy, and reserved). Of the Big Five, extraver- sion is the easiest to judge in zero acquaintance situations—situations in which two people have only just met. Consider times when you’ve been around a stranger in a doctor’s office, in line at
Research suggests that conscientious individuals actually live longer. One potential reason is that conscientiousness is associated with less risky driving behavior.
©Ingram Publishing/Getty Images
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OB ON SCREEN LA LA LAND
Sebastian: I hear what you’re saying, but I don’t think you’re saying what you mean.
Bill: Yeah, I don’t think you hear what I’m saying. You’re fired.
With those words, a young piano player gets fired from his restaurant gig in La La Land (Dir. Damien Chazelle, Summit Entertainment, 2016). Sebastian (Ryan Gosling) is a man with a singular passion: he wants to play jazz on the piano in his own jazz club in Los Angeles. Currently, however, he’s living in a studio apartment and taking any piano gigs he can get—all of which seem beneath him artistically. His only companions in the apartment are his jazz records, unpacked boxes, and a stack of unpaid bills.
This is not Sebastian’s first time playing in this particular restaurant, and there’s some tension when Bill, the manager (J.K. Simmons), first greets him. Sebastian diffuses it initially, telling Bill, “I want you to know you’re looking at a new man . . . a man that’s happy to be here . . . and very easy to work with.” But they quickly begin to argue about what Sebastian will play. Bill wants a standard set of Christmas tunes given the holiday season—not any of Sebastian’s signature jazz stylings. Sebastian tries to negotiate before relenting (and noting that none of the customers care what he plays anyway).
Sebastian gets fired when he lapses from his assigned playlist to a soulful composition of his own creation—one that’s obviously touched a woman named Mia (Emma Stone) who has just walked in the door. The sequence illustrates the core of Sebastian’s personality. On the one hand, he’s high in openness, as many artists are. He finds a set playlist constraining—he longs to express himself and grow musically. On the other hand, he’s both disagreeable and unconscientious. He’s argumentative and cynical with Bill, and ultimately disregards the instructions of the one person providing his paycheck. That disagreeable and unconscientious nature even impacts Mia, literally, as he brushes past her to exit the restaurant.
Source: La La Land (Dir. Damien Chazelle, Summit Entertainment, 2016)
©Moviestore collection Ltd/Alamy
a grocery store, or in an airport terminal. It takes only about 5 minutes to figure out whether that stranger is extraverted or introverted.28 Extraversion is also the Big Five dimension that you knew your standing on, even before taking our self-assessment. People rarely consider how open they are to new experiences or how agreeable they are, but almost everyone already self-identifies as an “extravert” or “introvert.”
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Like agreeableness, extraversion is not necessarily related to performance across all jobs or occupations. However, extraverted people prioritize status striving, which reflects a strong desire to obtain power and influence within a social structure as a means of expressing personality.29 Extraverts care a lot about being successful and influential and direct their work efforts toward “moving up” and developing a strong reputation. Indeed, research suggests that extraverts are more likely to emerge as leaders in social and task-related groups.30 They also tend to be rated as more effective in a leadership role by the people who are following them.31 One potential reason for these findings is that people tend to view extraverts, who are more energetic and outgoing, as more “leaderlike” than introverts.
In addition to being related to leadership emergence and effectiveness, research suggests that extraverts tend to be happier with their jobs. You may recall from Chapter 4 on job satisfaction that people’s day-to-day moods can be categorized along two dimensions: pleasantness and activa- tion. As illustrated in Figure 9-3, extraverted employees tend to be high in what’s called positive affectivity—a dispositional tendency to experience pleasant, engaging moods such as enthusiasm, excitement, and elation.32 That tendency to experience positive moods across situations explains why extraverts tend to be more satisfied with their jobs.33 Research now acknowledges that employees’ genes have a significant impact on their job satisfaction and that much of that genetic influence is due to extraversion (and neuroticism, as discussed next). For example, one study of identical twins reared apart showed that twins’ job satisfaction levels were significantly correlated, even when the twins held jobs that were quite different in terms of their duties, their complexity,
FIGURE 9-3 Extraversion, Neuroticism, and Typical Moods
Activated
Deactivated
PleasantUnpleasant
Surprised Astonished
Aroused
Quiet Still
Inactive
Happy Cheerful Pleased
Grouchy Sad Blue
Hostile Nervous Annoyed
Enthusiastic Excited Elated
Bored Sluggish Drowsy
Serene Calm
Content
Extraversion as "Positive
A ectivity"
Neuroticism as "Negative
A ectivity"
Neuroticism as "Negative
A ectivity"
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and their working conditions.34 In fact, this study suggested that around 30 percent of the varia- tion in job satisfaction is due to genetic factors such as personality.
Other research suggests that extraverts have more to be happy about than just their jobs. Spe- cifically, research suggests that extraversion is positively related to more general life satisfaction.35 To shed light on that finding, one study asked students to complete a “life event checklist” by indicating whether various events had happened to them in the preceding four years.36 The results showed that extraversion was associated with more positive events, such as joining a club or ath- letic team, going on vacation with friends, getting a raise at work, receiving an award for non- academic reasons, and getting married or engaged. Other studies have linked extraversion to the number of same-sex peers, number of dating partners, frequency of alcohol consumption, and frequency of attending parties.37 However, extraverts spend so much time doing those things that they wind up having less frequent interactions with their family.38 Even parents of extraverts enjoy a phone call home now and again!
NEUROTICISM Neurotic people are nervous, moody, emotional, insecure, and jealous. Occa- sionally you may see this Big Five dimension called by its flip side: “Emotional Stability” or “Emotional Adjustment.” If conscientiousness is the most important of the Big Five from the per- spective of job performance, neuroticism is the second most important.39 There are few jobs for which the traits associated with neuroticism are beneficial to on-the-job behaviors. Instead, most jobs benefit from employees who are calm, steady, and secure.
Whereas extraversion is synonymous with positive affectivity, neuroticism is synonymous with negative affectivity—a dispositional tendency to experience unpleasant moods such as hostility, nervousness, and annoyance (see Figure 9-3).40 That tendency to experience negative moods explains why neurotic employees often experience lower levels of job satisfaction than their less neurotic counterparts.41 Along with extraversion, neuroticism explains much of the impact of genetic factors on job satisfaction. Research suggests that the negative affectivity associated with neuroticism also influences life satisfaction, with neurotic people tending to be less happy with their lives in general.42 In fact, one method of assessing neuroticism (or negative affectivity) is to determine how unhappy people are with everyday objects and things. This “gripe index” is shown in Table 9-1. If you find yourself dissatisfied with several of the objects in that table, then you prob- ably experience negative moods quite frequently.
Neuroticism also influences the way that people deal with stressful situations. Specifically, neuroticism is associated with a differential exposure to stressors, meaning that neurotic people are more likely to appraise day-to-day situations as stressful (and therefore feel like they are exposed to stressors more frequently).43 Neuroticism is also associated with a differential reac- tivity to stressors, meaning that neurotic people are less likely to believe they can cope with the stressors that they experience.44 Neuroticism is largely responsible for the Type A Behavior Pattern that has been shown to affect employees’ health and ability to manage stressful environ- ments.45 That is, neurotic people are much more likely to be “Type As,” whereas less neurotic individuals are much more likely to be “Type Bs” (see Chapter 5 on stress for more discussion of such issues).
Neuroticism is also strongly related to locus of control, which reflects whether people attribute the causes of events to themselves or to the external environment.46 Neurotic people tend to hold an external locus of control, meaning that they often believe that the events that occur around them are driven by luck, chance, or fate. Less neurotic people tend to hold an internal locus of control, meaning that they believe that their own behavior dictates events. Table 9-2 provides more detail about the external versus internal distinction. The table includes a number of beliefs that are representative of an external or internal viewpoint, including beliefs about life in general, work, school, politics, and relationships. If you tend to agree more strongly with the beliefs in the left column, then you have a more external locus of control. If you tend to agree more with the right column, your locus is more internal.
How important is locus of control? One meta-analysis of 135 different research studies showed that an internal locus of control was associated with higher levels of job satisfaction and job per- formance.47 A second meta-analysis of 222 different research studies showed that people with an internal locus of control enjoyed better health, including higher self-reported mental well-being,
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TABLE 9-1 The Neutral Objects Questionnaire (aka The “Gripe Index”)
Instructions: The following questions ask about your degree of satisfaction with several items. Consider each item carefully. Circle the numbered response that best represents your feelings about the corresponding item. Then sum up your score.
DISSATISFIED NEUTRAL SATISFIED
Your telephone number 1 2 3
8 1/2 × 11 paper 1 2 3
Popular music 1 2 3
Modern art 1 2 3
Your first name 1 2 3
Restaurant food 1 2 3
Public transportation 1 2 3
Telephone service 1 2 3
The way you were raised 1 2 3
Advertising 1 2 3
The way people drive 1 2 3
Local speed limits 1 2 3
Television programs 1 2 3
The people you know 1 2 3
Yourself 1 2 3
Your relaxation time 1 2 3
Local newspapers 1 2 3
Today’s cars 1 2 3
The quality of food you buy 1 2 3
The movies being produced today 1 2 3
The climate where you live 1 2 3
The high school you attended 1 2 3
The neighbors you have 1 2 3
The residence where you live 1 2 3
The city in which you live 1 2 3
Interpretation: If you scored below a 50, you tend to be less satisfied with everyday objects than the typical respondent. Such a score may indicate negative affectivity, a tendency to feel negative emotional states frequently. (Or perhaps you should change your phone number!)
Source: Adapted from T.A. Judge, “Does Affective Disposition Moderate the Relationship between Job Satisfaction and Voluntary Turnover?” Journal of Applied Psychology 78 (1993), pp. 395–401; and J. Weitz, “A Neglected Concept in the Study of Job Satisfaction,” Personnel Psychology 5 (1952), pp. 201–05.
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TABLE 9-2 External and Internal Locus of Control
PEOPLE WITH AN EXTERNAL LOCUS OF CONTROL TEND TO BELIEVE:
PEOPLE WITH AN INTERNAL LOCUS OF CONTROL TEND TO BELIEVE:
Many of the unhappy things in people’s lives are partly due to bad luck.
People’s misfortunes result from the mistakes they make.
Getting a good job depends mainly on being in the right place at the right time.
Becoming a success is a matter of hard work; luck has little or nothing to do with it.
Many times exam questions tend to be so unrelated to course work that studying is really useless.
In the case of the well-prepared student, there is rarely if ever such a thing as an unfair test.
This world is run by the few people in power, and there is not much the little guy can do about it.
The average citizen can have an influence in government decisions.
There’s not much use in trying too hard to please people; if they like you, they like you.
People are lonely because they don’t try to be friendly.
Source: Adapted from J.B. Rotter, “Generalized Expectancies for Internal versus External Control of Reinforcement,” Psychological Monographs 80 (1966), pp. 1–28.
fewer self-reported physical symptoms, lower blood pressure, and lower stress hormone secre- tion.48 Internals also enjoyed more social support at work than externals and sensed that they had a stronger relationship with their supervisors. They viewed their jobs as having more beneficial characteristics, such as autonomy and significance, and fewer negative characteristics, such as conflict and ambiguity. In addition, those with an internal locus of control earned a higher salary than those with an external locus.
OPENNESS TO EXPERIENCE The final dimension of the Big Five is openness to experience. Open people are curious, imaginative, creative, complex, refined, and sophisticated. Of all the Big Five, openness to experience has the most alternative labels. Sometimes it’s called “Inquisitive- ness” or “Intellectualness” or even “Culture” (not in the national culture sense—rather, in the
“high culture” sense of knowing fine wine, art, and clas- sical music). Much like agreeableness and extraversion, the traits associated with openness are beneficial in some jobs but not others. As a result, openness is not related to job performance across all occupations.
What jobs benefit from high levels of openness? Gen- erally speaking, jobs that are very fluid and dynamic, with rapid changes in job demands. Research shows that open employees excel in learning and training environments, because their curiosity gives them a built-in desire to learn new things.49 They also tend to be more adaptable and quick to identify when the “old way of doing things” is no longer effective, excelling at the search for a new and better approach.50 In fact, conscientious employees are sometimes less effective than open employees in such environments because their persevering nature some- times prevents them from abandoning “tried-and-true” task strategies.
Openness to experience is also more likely to be valu- able in jobs that require high levels of creative perfor- mance, where job holders need to be able to generate
People who are open to new experiences tend to do well in situations that offer frequent opportuni- ties to learn new things,
such as teaching.
©Fuse/Getty Images
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FIGURE 9-4 Openness to Experience and Creativity
Creative Thought
Creative Performance
Openness to Experience
Cognitive Ability
novel and useful ideas and solutions.51 The relationship between openness and creative perfor- mance can be seen in Figure 9-4. Together with cognitive ability, openness to experience is a key driver of creative thought, as smart and open people excel at the style of thinking demanded by creativity (see Chapter 10 on ability for more discussion of such issues). How good are you at creative thinking? See Figure 9-5 to find out. Creative thought results in creative performance
FIGURE 9-5 Tests of Creative Thinking
1. What gets wetter as it dries?
2. A woman had two sons who were born on the same hour of the same day of the
3. What occurs once in June, once in July, and twice in August?
4. Make this mathematical expression true by drawing only a single noncurving line:
5+5+5 = 550 5. Join all nine of the dots below using only four (or fewer) noncurving lines, without
Instructions: Do you consider yourself to be a creative thinker? See if you can solve the problems below. If you need help, the answers can be found in the Takeaways section of this chapter.
lifting your pen from the paper and without retracing the lines.
same year. But they were not twins. How could this be so?
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when people come up with new ideas, create fresh approaches to problems, or suggest new inno- vations that can help improve the workplace.52 The creativity benefits of openness likely explain why highly open individuals are more likely to migrate into artistic and scientific fields, in which novel and original products are so critical.53 Dragonfly, a New York–based web video–networking company, goes to unusual lengths to foster creative thought.54 The company pays $10,000 to $20,000 to put employees through six hours of hypnotism. The idea is that the relaxation, medita- tion, and visualization used in hypnosis can unlock the imagination of employees, even if they’re lower in openness.
BMW, the German automaker, seems to understand the importance of the Big Five dimen- sions of personality. BMW has worked hard to create a culture of innovation in which there is never a penalty for proposing new and outlandish ways of improving its cars.55 Those proposed improvements include a “smart card” that can be taken out of your own BMW and plugged into a rented one, passing along your music, podcast, and comfort settings to the new vehicle. Openness is needed to foster such creative thought, but agreeableness is also key to BMW’s culture. Stefan Krause, BMW’s chief financial officer, summarizes how to push a creative idea successfully: “You can go into fighting mode or you can ask permission and get everyone to support you. If you do it without building ties, you will be blocked.”
BMW employees also draw on their conscientiousness in those critical times when a new tech- nology is introduced or production volume is expanded. During those time periods, employees from other factories may move into temporary housing far from home to put in extra hours on another plant’s line. Why are employees so devoted? For one thing, no one at BMW can remem- ber a layoff—something that is incredibly unique in the auto industry. That’s part of the reason BMW’s human resources group receives more than 200,000 applications annually. Those fortu- nate enough to make it to the interview stage participate in elaborate, day-long drills in teams to make sure that their personalities provide a good match for the company.
BMW’s Leipzig facility, where the assembly line
moves above work spaces to give employees a feel
for the rhythm of the plant.
©View Pictures Ltd/Dennis Gilbert/Alamy
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OT H E R TA XO N O M I E S O F P E R S O N A L I T Y Although the Big Five is the dominant lens for examining personality, it’s not the only framework with which you might be familiar. One of the most widely administered personality measures in organizations is the Myers-Briggs Type Indicator (MBTI).56 This instrument was originally created to test a theory of psychological types advanced by the noted psychologist Carl Jung.57 The MBTI evaluates individuals on the basis of four types of preferences:58
• Extraversion (being energized by people and social interactions) versus Introversion (being ener- gized by private time and reflection).
• Sensing (preferring clear and concrete facts and data) versus Intuition (preferring hunches and speculations based on theory and imagination).
• Thinking (approaching decisions with logic and critical analysis) versus Feeling (approaching decisions with an emphasis on others’ needs and feelings).
• Judging (approaching tasks by planning and setting goals) versus Perceiving (preferring to have flexibility and spontaneity when performing tasks).
The MBTI categorizes people into one of 16 different types on the basis of their preferences. For example, an “ISTJ” has a preference for Introversion, Sensing, Thinking, and Judging. Research on the MBTI suggests that managers are more likely to be “TJs” than the general population.59 Moreover, the different personality types seem to approach decision-making tasks with differing emphases on facts, logic, and plans. That said, there is little evidence that the MBTI is a useful tool for predicting the job satisfaction, motivation, performance, or commitment of employees across jobs.60 Indeed, one of the reasons the MBTI is so widely used is that there really isn’t a “bad type”—no one who gets their profile is receiving negative news. As a result, the most appropriate use of the MBTI is in a team-building context, to help different members understand their varying approaches to accomplishing tasks. Using the MBTI as any kind of hiring or selection tool does not appear to be warranted, based on existing research.
A second alternative to the Big Five is offered by research on vocational interests.61 Interests are expressions of personality that influence behavior through preferences for certain environ- ments and activities.62 Interests reflect stable and enduring likes and dislikes that can explain why people are drawn toward some careers and away from others.63 Holland’s RIASEC model suggests that interests can be summarized by six different personality types:64
• Realistic: Enjoys practical, hands-on, real-world tasks. Tends to be frank, practical, determined, and rugged.
• Investigative: Enjoys abstract, analytical, theory-oriented tasks. Tends to be analytical, intellec- tual, reserved, and scholarly.
• Artistic: Enjoys entertaining and fascinating others using imagination. Tends to be original, inde- pendent, impulsive, and creative.
• Social: Enjoys helping, serving, or assisting others. Tends to be helpful, inspiring, informative, and empathic.
• Enterprising: Enjoys persuading, leading, or outperforming others. Tends to be energetic, socia- ble, ambitious, and risk-taking.
• Conventional: Enjoys organizing, counting, or regulating people or things. Tends to be careful, conservative, self-controlled, and structured.
As shown in Figure 9-6, the RIASEC model further suggests that the personality types can be classified along two dimensions: the degree to which employees prefer to work with data versus ideas and the degree to which they prefer to work with people versus things. For example, those with a Realistic personality prefer to work with things and data more than people and ideas. The model arranges the personality types in a hexagonal fashion, with types adjacent to one another being more similar than types that are more distant. The central prem- ise of the RIASEC model is that employees will have more career satisfaction, job knowledge, and longevity in occupations that match their personality type.65 For example, Realistic people
9.4 What taxonomies can be used to describe personal- ity, other than the Big Five?
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FIGURE 9-6 Holland’s RIASEC Model
Source: Adapted from J.L. Holland, Making Vocational Choices: A Theory of Careers (Englewood Cliffs, NJ: Prentice Hall, 1973).
WORKING WITH THINGS
WORKING WITH PEOPLE
WORKING WITH DATA
WORKING WITH IDEAS
Social
EnterprisingRealistic
Investigative
Artistic
Conventional
should be happier and more effective as craftspeople than as counselors because a craftsper- sons’ duties provide a good match to their personality. One of the most common applications of the RIASEC model is interest inventories, which provide people their scores on relevant personality dimensions, along with a list of occupations that could provide a good match for that profile.66
C U LT U R A L VA LU E S As noted previously, our personalities are influenced by both our genes and our environment. One significant aspect of that environment is the society in which we were raised. Societies can be described in a number of ways, including their climate and habitat, their sovereignty and political system, their language and religion, their education and technology levels, and their economic development.67 However, one of the most important aspects of societies is culture. Culture is defined as the shared values, beliefs, motives, identities, and interpretations that result from com- mon experiences of members of a society and are transmitted across generations.68 Culture has been described as patterns resulting from societal traditions and as the collective programming of the mind that separates one society from another.69 The shared values, societal traditions, and col- lective programming that underlies culture influence the development of our personalities while also shaping the way our traits are expressed.70 In this way, explaining “what we’re like” requires an awareness of “where we’re from.”
To some extent, cultures provide societies with their own distinct personalities.71 One study on the Big Five profiles of 51 different cultures showed that some societies tend to value certain per- sonality traits more than other societies.72 For example, people from India tend to be more con- scientious than people from Belgium. People from the Czech Republic tend to be more agreeable
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than people from Hong Kong. People from Brazil tend to be more neurotic than people from China. People from Australia tend to be more extraverted than people from Russia. People from Denmark tend to be more open than people from Argentina. For their part, people in the United States trend toward the high end of the 51-culture sample on extraversion and openness, staying near the middle for the other Big Five dimensions. Of course, that doesn’t mean that all of the members of these societies have exactly the same personality. Instead, those results merely convey that certain cul- tures tend to place a higher value on certain traits.
Although it’s possible to contrast nations using the Big Five, as we just did, cross-cultural research focuses more attention on the shared values aspect of culture. The values that are salient in a given culture influence how people select and justify courses of action and how they evalu- ate themselves and other people.73 To some extent, cultural values come to reflect the way things should be done in a given society.74 Acting in a manner that’s consistent with those values helps people to fit in, and going against those values causes people to stand out. Just as there are a num- ber of traits that can be used to describe personality, there are a number of values that can be used to describe cultures. Given the sheer complexity of culture, it’s not surprising that different studies have arrived at different taxonomies that can be used to summarize cultural values.
The most well-known taxonomy of cultural values was derived from a landmark study in the late 1960s and early 1970s by Geert Hofstede, who analyzed data from 88,000 IBM employees from 72 countries in 20 languages.75 His research showed that employees working in different countries tended to prioritize different values, and those values clustered into several distinct dimensions. Those dimensions are summarized in Table 9-3 and include individualism– collectivism, power distance, uncertainty avoidance, and masculinity–femininity. A subsequent study added a fifth dimension to the taxonomy: short-term vs. long-term orientation.76 Hofst- ede’s research introduced scores on each of the dimensions for various cultures, providing researchers with a quantitative tool to summarize and compare and contrast the cultures of different societies. Table 9-3 includes some of the countries that have high or low scores on Hofstede’s dimensions.
Although Hofstede’s dimensions have formed the foundation for much of the research on cross-cultural management, more recent studies have painted a more nuanced picture of cultural values. Project GLOBE (Global Leadership and Organizational Behavior Effectiveness) is a col- lection of 170 researchers from 62 cultures who have studied 17,300 managers in 951 organiza- tions since 1991.77 The main purpose of Project GLOBE is to examine the impact of culture on the effectiveness of various leader attributes, behaviors, and practices (see Chapter 14 on leadership styles and behaviors for more discussion of such issues). In pursuing that goal, project research- ers asked managers to rate the values held within their organizations and within their societies. That research identified nine different dimensions that are used to summarize cultures within Project GLOBE. Some of those dimensions can be viewed as replications of Hofstede’s work. For example, Project GLOBE identified both power distance and uncertainty avoidance as key dimen- sions of cultural values. The project also identified collectivism, though it was differentiated into institutional collectivism (where formalized practices encourage collective action and collective distribution of resources) and ingroup collectivism (where individuals express pride and loyalty to specific ingroups).
9.5 What taxonomies can be used to describe cultural values?
Research on cultural values categorizes China as a highly collective culture, meaning that its citizens tend to prioritize taking care of ingroup members, and staying loyal to them.
©Plush Studios/Bill Reitzel/Getty Images
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TABLE 9-3 Hofstede’s Dimensions of Cultural Values
INDIVIDUALISM–COLLECTIVISM
INDIVIDUALISTIC COLLECTIVISTIC
The culture is a loosely knit social framework in which people take care of themselves and their immediate family.
The culture is a tight social framework in which people take care of the members of a broader ingroup and act loyal to it.
United States, the Netherlands, France Indonesia, China, West Africa
POWER DISTANCE
LOW HIGH
The culture prefers that power be distributed uniformly where possible, in a more egalitar- ian fashion.
The culture accepts the fact that power is usually distributed unequally within organizations.
United States, Germany, the Netherlands Russia, China, Indonesia
UNCERTAINTY AVOIDANCE
LOW HIGH
The culture tolerates uncertain and ambigu- ous situations and values unusual ideas and behaviors.
The culture feels threatened by uncertain and ambiguous situations and relies on formal rules to create stability.
United States, Indonesia, the Netherlands Japan, Russia, France
MASCULINITY–FEMININITY
MASCULINE FEMININE
The culture values stereotypically male traits such as assertiveness and the acquisition of money and things.
The culture values stereotypically female traits such as caring for others and caring about quality of life.
United States, Japan, Germany The Netherlands, Russia, France
SHORT-TERM VS. LONG–TERM ORIENTATION
SHORT–TERM ORIENTED LONG–TERM ORIENTED
The culture stresses values that are more past- and present-oriented, such as respect for tradition and fulfilling obligations.
The culture stresses values that are more future-oriented, such as persistence, pru- dence, and thrift.
United States, Russia, West Africa China, Japan, the Netherlands
Sources: G. Hofstede, Culture’s Consequences: Comparing Values, Behaviors, Institutions, and Organizations across Nations (Thousand Oaks, CA: Sage, 2001); G. Hofstede, “Cultural Constraints in Management Theories,” Academy of Manage- ment Executive 7 (1993), pp. 81–94; and G. Hofstede and M.H. Bond, “The Confucius Connection: From Cultural Roots to Economic Growth,” Organizational Dynamics 16 (1988), pp. 5–21.
Other dimensions bear some similarity to Hofstede’s work but are conceptually distinct. Those dimensions are listed below, along with some information on the cultures that score at the higher and lower ends on a given value. Note that Project GLOBE groups cultures into “country clus- ters.” Those clusters include Anglo (United States, Canada, Australia, England), Latin America
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(Mexico, Brazil, Colombia, Venezuela), Latin Europe (France, Spain, Italy, Israel), Germanic Europe (Germany, Austria, the Netherlands, Switzerland), Nordic Europe (Denmark, Finland, Sweden), Eastern Europe (Poland, Hungary, Russia, Greece), Middle East (Turkey, Egypt, Kuwait, Morocco), Southern Asia (India, Thailand, Indonesia, Malaysia), Confucian Asia (China, South Korea, Japan, Singapore), and Sub-Saharan Africa (Zimbabwe, Namibia, Nigeria). The following descriptions note some of the country clusters that earn high and low scores on a given cultural value. Note that the Anglo group, which includes the United States, scores in the middle on most of the cultural values.
• Gender Egalitarianism. The culture promotes gender equality and minimizes role differences between men and women. High: Nordic Europe, Eastern Europe. Low: Middle East.
• Assertiveness. The culture values assertiveness, confrontation, and aggressiveness in social rela- tionships. High: Germanic Europe, Eastern Europe. Low: Nordic Europe.
• Future Orientation. The culture engages in planning and investment in the future while delaying individual or collective gratification. High: Germanic Europe, Nordic Europe. Low: Middle East, Latin America, Eastern Europe.
• Performance Orientation. The culture encourages and rewards members for excellence and per- formance improvements. High: Anglo, Confucian Asia, Germanic Europe. Low: Latin America, Eastern Europe.
• Humane Orientation. The culture encourages and rewards members for being generous, car- ing, kind, fair, and altruistic. High: Southern Asia, Sub-Saharan Africa. Low: Latin Europe, Germanic Europe.
Taken together, Hofstede’s work and the Project GLOBE studies have identified between five and nine cultural value dimensions. However, the lion’s share of cross-cultural research focuses on individualism–collectivism, perhaps the most fundamental means of differentiating cultures.78 The individualism–collectivism distinction is relevant to various topics within organizational behavior.79 For example, collectivists exhibit higher levels of task performance and citizenship behaviors in work team settings, and also exhibit lower levels of counterproductive and withdrawal behaviors.80 They are also more likely to feel affectively and normatively committed to their employers than are individualists.81 Research also suggests that collectivists tend to prefer rewards that are allocated equally on a group-wide basis as opposed to rewards tied solely to individual achievement.82
Regardless of the particular value of focus, research on cultural values illustrates the potential differences between the attitudes and beliefs of U.S. employees and the attitudes and beliefs of employees in other societies. Awareness of such cultural variations is critical, given that those dif- ferences can influence reactions to change, conflict management styles, negotiation approaches, and reward preferences, just to name a few.83 Failing to understand those differences can compro- mise the effectiveness of multinational groups and organizations. Such problems are particularly likely if employees are high in ethnocentrism, defined as a propensity to view one’s own cultural values as “right” and those of other cultures as “wrong.”84 For more discussion of this issue, see our OB Internationally feature.
S U M M A RY: H OW CA N W E D E S C R I B E W H AT E M P LOY E E S A R E L I K E ? So how can we explain what employees are like? As shown in Figure 9-7, many of the thousands of adjectives we use to describe people can be boiled down into the Big Five dimensions of personality. Conscientiousness reflects the reliability, perseverance, and ambition of employees. Agreeableness captures their tendency to cooperate with others in a warm and sympathetic fashion. Neuroticism reflects the tendency to experience negative moods and emotions fre- quently on a day-to-day basis. Individuals who are high on openness to experience are creative, imaginative, and curious. Finally, extraverts are talkative, sociable, and assertive and typically
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Research suggests that ethnocentrism hinders the effectiveness of expatriates, who are employees working full-time in other countries. Ethnocentrism makes expatriates less likely to adjust to a new culture, less likely to fulfill the duties required of their international assignment, and more likely to withdraw from that assignment. How can organizations identify employees with the right personalities to serve as expatriates? One useful tool is the multicultural personality questionnaire, which assesses five personality dimensions that can maximize the performance and commitment of expatriates. Those dimensions are listed below, along with some sample items.
Cultural Empathy. A tendency to empathize with the feelings, thoughts, and behaviors of indi- viduals with different cultural values.
• I understand other people’s feelings. • I take other people’s habits into consideration.
Open-mindedness. A tendency to have an open and unprejudiced attitude toward other cultural values and norms.
• I get involved in other cultures. • I find other religions interesting.
Emotional Stability. A tendency to remain calm in the kinds of stressful situations that can be encountered in foreign environments.
• I can put setbacks in perspective. • I take it for granted that things will turn out right.
Social Initiative. A tendency to be proactive when approaching social situations, which aids in building connections.
• I easily approach other people. • I am often the driving force behind things.
Flexibility. A tendency to regard new situations as a challenge and to adjust behaviors to meet that challenge.
• I could start a new life easily. • I feel comfortable in different cultures.
Research has linked these five personality traits to a number of expatriate success factors. For example, individuals with a “multicultural personality” are more likely to aspire to international positions, more likely to gain international experience, more likely to adjust to new assignments, and more likely to be happy with their lives during those assignments.
OB INTERNATIONALLY
Sources: K.I. Van der Zee and U. Brinkmann, “Construct Validity Evidence for the Intercultural Readiness Check against the Multicultural Personality Questionnaire,” International Journal of Selection and Assessment 12 (2004), pp. 285–90; K.I. Van der Zee and J.P. Van Oudenhoven, “The Multicultural Personality Questionnaire: Reliability and Validity of Self and Other Ratings of Multicultural Effectiveness,” Journal of Research in Personality 35 (2001), pp. 278–88; J.P. Van Ouden- hoven and K.I. Van der Zee, “Predicting Multicultural Effectiveness of International Students: The Multicultural Personal- ity Questionnaire,” International Journal of Intercultural Relations 26 (2002), pp. 679–94; and J.P. Van Oudenhoven S. Mol; and K.I. Van der Zee, “Study of the Adjustment of Western Expatriates in Taiwan ROC with the Multicultural Personality Questionnaire,” Asian Journal of Social Psychology 6 (2003), pp. 159–70.
experience positive moods and emotions. Other personality taxonomies, like the MBTI or the RIASEC model, can also capture many employee traits. Beyond personality, however, what employees are like also depends on the culture in which they were raised. Cultural values like individualism–collectivism, power distance, and so forth also influence employees’ thoughts, emotions, and behaviors.
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FIGURE 9-7 How Can We Describe What Employees Are Like?
The Big Five • Conscientiousness • Agreeableness • Neuroticism • Openness to Experience • Extraversion
Other Taxonomies • Myers-Briggs • RIASEC Model
Culture Taxonomies • Hofstede Dimensions • Project GLOBE Dimensions
What employees
are like
Personality
Cultural Values
H O W I M P O R TA N T A R E P E R S O N A L I T Y A N D C U LT U R A L VA LU E S ?
We’ve already described a number of reasons why the Big Five should be important consider- ations, particularly in the case of conscientiousness. What if we focus specifically on the two outcomes in our integrative model of OB, performance and commitment? Figure 9-8 summarizes the research evidence linking conscientiousness to those two outcomes. The figure reveals that conscientiousness affects job performance. Of the Big Five, conscientiousness has the strongest effect on task performance,85 partly because conscientious employees have higher levels of motiva- tion than other employees.86 They are more self-confident, perceive a clearer linkage between their effort and their performance, and are more likely to set goals and commit to them. For these rea- sons, conscientiousness is a key driver of what’s referred to as typical performance, which reflects performance in the routine conditions that surround daily job tasks.87 An employee’s ability, in contrast, is a key driver of maximum performance, which reflects performance in brief, special circumstances that demand a person’s best effort.
Conscientious employees are also more likely to engage in citizenship behaviors.88 Why? One reason is that conscientious employees are so punctual and have such good work attendance that they are simply more available to offer “extra mile” sorts of contributions. Another reason is that they engage in so much more work-related effort that they have more energy to devote to citizen- ship behaviors.89 A third reason is that they tend to have higher levels of job satisfaction,90 and pos- itive feelings tend to foster spontaneous instances of citizenship. Finally, conscientious employees
9.6 How does personality affect job performance and organizational commitment?
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FIGURE 9-8 Effects of Personality on Performance and Commitment
Sources: M.R. Barrick, M.K. Mount, and T.A. Judge, “Personality and Performance at the Beginning of the New Mil- lennium: What Do We Know and Where Do We Go Next?” International Journal of Selection and Assessment 9 (2001), pp. 9–30; C.M. Berry, D.S. Ones, and P.R. Sackett, “Interpersonal Deviance, Organizational Deviance, and Their Com- mon Correlates: A Review and Meta-Analysis,” Journal of Applied Psychology 92 (2007), pp. 410–24; A. Cooper-Hakim and C. Viswesvaran, “The Construct of Work Commitment: Testing an Integrative Framework,” Psychological Bulletin 131 (2005), pp. 241–59; L.M. Hough and A. Furnham, “Use of Personality Variables in Work Settings,” in Handbook of Psy- chology, Vol. 12, ed. W.C. Borman, D.R. Ilgen, and R.J. Klimoski (Hoboken, NJ: Wiley, 2003), pp. 131–69; J.E. Mathieu and D.M. Zajac, “A Review and Meta-Analysis of the Antecedents, Correlates, and Consequences of Organizational Com- mitment,” Psychological Bulletin 108 (1990), pp. 171–94; and J.F. Salgado, “The Big Five Personality Dimensions and Counterproductive Behaviors,” International Journal of Selection and Assessment 10 (2002), pp. 117–25.
Job Performance
Conscient- iousness
Organizational Commitment
Conscient- iousness
Conscientiousness has a moderate positive e�ect on Performance. Conscientious employees have higher levels of Task Performance. They are also more likely to engage in Citizenship Behavior and less likely to engage in Counterproductive Behavior.
Conscientiousness has a moderate positive e�ect on Commitment. Conscientious employees have higher levels of A�ective Commitment and higher levels of Normative Commitment. Conscientiousness has no e�ect on Continuance Commitment.
Represents a weak correlation (around .10 in magnitude).
Represents a moderate correlation (around .30 in magnitude).
Represents a strong correlation (around .50 in magnitude).
are less likely to engage in counterproductive behaviors,91 for two major reasons. First, their higher job satisfaction levels make it less likely that they’ll feel a need to retaliate against their organiza- tion. Second, even if they do perceive some slight or injustice, their dependable and reliable nature should prevent them from violating organizational norms by engaging in negative actions.92
Figure 9-8 also reveals that conscientious employees tend to be more committed to their organi- zation.93 They’re less likely to engage in day-to-day psychological and physical withdrawal behaviors because such actions go against their work habits. They’re also significantly less likely to voluntarily leave the organization.94 Why? One reason is that the persevering nature of conscientious employ- ees prompts them to persist in a given course of action for long periods of time. That persistence can be seen in their daily work effort, but it extends to a sense of commitment to the organization as well.95 Another reason is that conscientious employees are better at managing stress, perceiving lower levels of key stressors, and being less affected by them at work.96 In some respects, Figure 9-8 understates the importance of conscientiousness (and personality, more generally). Why? Because personality becomes more important in some contexts than in others. The principle of situational strength suggests that “strong situations” have clear behavioral expectations, incentives, or instruc- tions that make differences between individuals less important, whereas “weak situations” lack those cues.97 Personality variables tend to be more significant drivers of behavior in weak situations than in strong situations.98 Similarly, the principle of trait activation suggests that some situations provide cues that trigger the expression of a given trait.99 For example, a cry for help provides a cue that can trigger the expression of empathy. Personality variables tend to be more significant drivers
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of behaviors in situations that provide relevant cues than in situations in which those cues are lack- ing. For more on the benefits of conscientiousness, see our OB at the Bookstore feature.
A P P L I C AT I O N : P E R S O N A L I T Y T E S T S
Given how important personality traits can be to job performance and organizational commit- ment, it’s not surprising that many organizations try to gauge the personality of job applicants. What’s the best way to do that? Well, many organizations try to gauge personality through inter- views by looking for cues that an applicant is conscientious or agreeable or has high levels of some other relevant personality dimension. Can you see a potential problem with this approach? Here’s a hint: When was the last time you went into an interview and acted careless, sloppy, moody, or insecure? It’s probably been awhile. People engage in a number of impression management and
OB AT THE BOOKSTORE GRIT by Angela Duckworth (New York: Scribner, 2016).
In sum, no matter the domain, the highly successful had a kind of ferocious determination that played out in two ways. First, these exemplars were unusually resilient and hardworking. Sec- ond, they knew in a very, very deep way what it was they wanted . . . It was this combination of passion and perseverance that made high achievers special. In a word, they had grit.
With those words, Angela Duckworth lays out her thesis about the core of achievement. Duckworth argues that achievement can be understood with two equations: talent x effort = skill, and skill x effort = achievement. The key insight from that pair of equations? That effort counts twice. Those who are most determined and most resilient gain from those qualities in two ways, by building more skills and by getting more out of those skills. Duckworth summa- rizes those qualities as “grit”—a combination of high passion and high perseverance.
In her research, Duckworth measures grit with a number of sur- vey items, answered on a scale ranging from 1 = “Not at all like me” to 5 = “Very much like me.” They include “Setbacks don’t discour- age me. I don’t give up easily,” “I am a hard worker,” and “I finish whatever I begin.” Duckworth’s research has linked grit to commit- ment and achievement in a wide range of pursuits. For example, grit explains who survives the most intense phase of West Point’s
training better than anything the academy uses for screening. Although Duckworth does not explicitly make this connection, it’s clear that grit has much
in common with conscientiousness. Conscientious individuals are hardworking, persevering, dependable, and reliable—and they are known for the effort they put in. Does the fact that grit is a personality trait make it impossible to get “grittier”? As Duckworth acknowledges, personality is only partially genetic—it can change slowly but surely over the course of time. So how does one become “grittier”? Duckworth provides a number of suggestions, including working in areas of deep interest and focusing more on the quality of practice than the quantity of practice.
©Roberts Publishing Services
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self-presentation tactics when interviewing, sometimes to appear to possess traits that they don’t really have.100 In fact, most interview preparation courses and books train applicants to exhibit the very personality traits that most employers are looking for!
To examine whether interviewers can gauge the Big Five, one study asked 26 interviewers, all of whom were human resources practitioners with more than 12 years of hiring experience, to assess the personalities of undergraduate business students who were on the job market.101 The interview- ers met with an average of three students for 30 minutes and were instructed to follow the interview protocols used in their own organizations. Once the interviews had concluded, the study gathered multiple ratings of the Big Five, including ratings from the interviewer, the student, and a close friend of the student. The results of the study showed that the interviewers’ ratings of extraversion, agreeableness, and openness were fairly consistent with the students’ own ratings, as well as their friends’ ratings. In contrast, interviewers’ ratings of conscientiousness and neuroticism were only weakly related to the students’ and friends’ ratings. This study therefore shows that interviewers are unable to gauge the two Big Five dimensions that are most highly related to job performance.
Rather than using interviews to assess personality, more and more companies are relying on paper-and-pencil “personality tests” like the kind shown in our OB Assessments. A recent survey of Fortune 1000 firms suggests that around a third of those organizations rely on, or plan to imple- ment, some form of personality testing.102 If you’ve ever applied for an hourly position at Best Buy, Target, Toys “R” Us, Marriott, Universal Studios, Sports Authority, CVS Pharmacy, Albertsons, or Fresh Market, you may have been asked to take a personality test at a computer kiosk as part of your application.103 That test was designed by Kronos, a workforce management software and ser- vices provider headquartered in Chelmsford, Massachusetts.104 Kronos’s test includes 50 questions, many of which are clearly tapping the Big Five:
• You do things carefully so you don’t make mistakes.105 (high conscientiousness) • You can easily cheer up and forget a problem.106 (low neuroticism) • You don’t act polite when you don’t want to.107 (low agreeableness) • You’d rather blend into the crowd than stand out.108 (low extraversion)
Ten minutes after an applicant completes the personality test at the kiosk, the hiring manager receives a report that identifies the applicant with a “green light,” “yellow light,” or “red light.”109 Green lights earn an automatic follow-up interview, yellow lights require some managerial discretion, and red lights are excused from the hiring process. The report also includes some recommended interview questions to follow-up on any concerns that might have arisen based on personality responses. Kronos has built a database of 370,000 employee personality profiles, together with the actual job results for those employees, allowing them to look for profiles of effective and committed employees. Kronos also encourages employers to save the data from the personality tests for several years, to verify that responses correlate with performance evaluations and turnover over time.
Of course, personality testing is not without controversy. Privacy advocates worry about the security of the personality profiles that are stored in large databases.110 There’s also no guarantee that the personality tests used by a company are actually valid assessments because few of them have been subject to scientific investigation.111 For example, we’re not aware of any scientific studies in peer-reviewed journals that have comprehensively validated Kronos’s personality test. Because the personality testing industry is not regulated, the best bet for companies that are thinking about using personality tests is to start with tests that have been validated in scientific journals. Table 9-4 provides a list of some of the most well-validated measures of the Big Five personality dimensions. The vendors that own these measures typically offer software and services for scoring the instru- ments, interpreting the data against relevant population norms, and creating feedback sheets.
One particular subset of personality tests is particularly controversial. Integrity tests, some- times also called “honesty tests,” are personality tests that focus specifically on a predisposition to engage in theft and other counterproductive behaviors.112 Integrity tests were created, in part, as a reaction to Congress’s decision to make polygraph (or “lie detector”) tests illegal as a tool for organizational hiring. Integrity tests typically come in two general varieties. Clear purpose tests ask applicants about their attitudes toward dishonesty, beliefs about the frequency of dishonesty, endorsements of common rationalizations for dishonesty, desire to punish dishonesty, and confes- sions of past dishonesty.113 Veiled purpose tests do not reference dishonesty explicitly but instead
9.7 Are personality tests useful tools for organizational hiring?
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assess more general personality traits that are associated with dishonest acts. Table 9-5 provides sample items for both types of integrity tests. You might notice that the veiled purpose items resemble some of the items in our OB Assessments for the Big Five. Most integrity tests actually assess, in large part, a combination of high conscientiousness, high agreeableness, and low neu- roticism,114 along with an honesty or humility factor that may lie beyond the Big Five.115
Do integrity tests actually work? One study examined the effectiveness of integrity tests in a sam- ple of convenience store clerks.116 The chain had been struggling with inventory “shrinkage” due to theft and began using a clear purpose integrity test to combat that trend. The study compared the integrity test scores for employees who were fired for theft-related reasons (e.g., taking merchandise, mishandling cash, having frequent cash register shortages) with a sample of demographically simi- lar employees who remained in good standing. The results of the study revealed that employees who were terminated for theft had scored significantly lower on the integrity test when they were hired than employees who were not terminated. These sorts of results are not unusual; a meta-analysis of 443 studies including more than 500,000 employees has shown that integrity test scores have a moderately strong, negative correlation with counterproductive behaviors such as theft.117 In fact, integrity test scores are actually more strongly related to job performance than conscientiousness scores, largely because integrity tests sample a blend of multiple Big Five dimensions.118
You might find it surprising that integrity tests (or personality tests in general) can be effective. After all, don’t applicants just lie on the test? Before we answer that question, consider what you would do if you applied for a job and had to answer a set of questions on a 1 (“Strongly Disagree”) to 5 (“Strongly Agree”) scale that were obviously measuring integrity. If a response of 5 indicated
TABLE 9-4 A Sampling of Well-Validated Measures of the Big Five
NAME OF INSTRUMENT VENDOR TIME REQUIRED
NEO Five-Factor Inventory (NEO-FFI) Sigma Assessment Systems 15 minutes
Personal Characteristics Inventory (PCI) Wonderlic 20 minutes
Personality Research Form (PRF) Sigma Assessment Systems 45 minutes
Hogan Personality Inventory (HPI) Hogan Assessment Systems 15 minutes
Big Five Inventory (BFI) TestMaster 10 minutes
TABLE 9-5 Sample Integrity Test Items
TYPE OF TEST SAMPLE ITEMS
Clear Purpose • Would you say that most people lie on their résumé? • Have you ever taken something home from work without say-
ing anything about it? • If a cashier gave you too much change, do you think you’d
point out the error? • At what dollar value would theft from work become a fireable
offense?
Veiled Purpose • I rarely do things impulsively. • I try to avoid hurting people’s feelings. • There are people out there I’d like to get back at. • I’m someone who follows the rules.
Source: Adapted from J.E. Wanek, P.R. Sackett, and D.S. Ones, “Towards an Understanding of Integrity Test Similarities and Differences: An Item-Level Analysis of Seven Tests,” Personnel Psychology 56 (2003), pp. 873–94.
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high integrity, how would you answer? You probably wouldn’t answer all 5s because it would be clear that you were faking—exaggerating your responses to a personality test in a socially desirable fashion. You might worry that the computers that score the test have some ability to “flag” faked responses (indeed, the scoring procedures for many personality tests do flag applicants with an unusual pattern of responses).119
So how would you answer? Chances are, you’d allow your answers to have “a grain of truth”— you’d just exaggerate that true response a bit to make yourself look better. Figure 9-9 summarizes
FIGURE 9-9 The Effects of Faking on Correlations with Integrity Tests
S u
p e
rv is
o r
R a
ti n
g s
o f
C o
u n
te rp
ro d
u ct
iv e
B e
h a
vi o
r
Applicant Scores on Integrity Test
DISHONEST HONEST
IN F
R E
Q U
E N
T F
R E
Q U
E N
T
Score without Faking
Score with Faking
Amount of Faking
Correlation without faking = -.35 (picture only the faded circles)
Correlation with faking = -.30 (picture only the unfaded circles)
Above Average ScoreBelow Average Score
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what this sort of faking might look like, with red circles representing below-average scores on an integrity test and green circles representing above-average scores. Research on personality testing suggests that virtually everyone fakes their responses to some degree, as evidenced in the differ- ence between the faded circles (which represent the “true” responses) and the unfaded circles (which represent the exaggerated responses).120 Do dishonest people fake more? To some degree. Figure 9-9 reveals that applicants who scored below average on the test faked a bit more than applicants who scored above average on the test. But the disparity in the amount of faking is not large, likely because dishonest people tend to view their behavior as perfectly normal—they believe everyone feels and acts just like they do.
The figure reveals that it could be dangerous to set some artificial cutoff score for making hir- ing decisions, because it’s possible for people to “fake their way” across that cutoff (note that two of the individuals in the figure went from a below-average score to an above-average score by fak- ing). With that caution in mind, here’s the critical point illustrated by Figure 9-9: Because everyone fakes to some degree, correlations with outcomes like theft or other counterproductive behaviors are relatively unaffected.121 Picture the scatterplot in the figure with just the faded circles—what does the correlation between integrity test scores and supervisor ratings of counterproductive behavior look like? Now picture the scatterplot with just the unfaded circles—what does that correlation look like? About the same, right? The tendency to fake doesn’t really alter the rank order in scores from most dishonest to most honest, so the test is still useful as a tool for predicting counterpro- ductive behavior. In fact, experts on personnel selection agree that personality and integrity tests are among the most useful tools for hiring122—more useful even than the typical version of the employment interview.123 One of the only tools that’s more useful than a personality test is an abil- ity test—as noted in our next chapter.124
9.1 Personality refers to the structures and propensities inside people that explain their charac- teristic patterns of thought, emotion, and behavior. It also refers to people’s social reputations—the way they are perceived by others. In this way, personality captures what people are like (unlike ability, which reflects what people can do). Cultural values are shared beliefs about desirable end states or modes of conduct in a given culture that influence the development and expression of traits.
9.2 The “Big Five” include conscientiousness (e.g., dependable, organized, reliable), agreeable- ness (e.g., warm, kind, cooperative), neuroticism (e.g., nervous, moody, emotional), open- ness to experience (e.g., curious, imaginative, creative), and extraversion (e.g., talkative, sociable, passionate).
9.3 Although both nature and nurture are important, personality is affected significantly by genetic factors. Studies of identical twins reared apart and studies of personality stability over time suggest that between 35 and 45 percent of the variation in personality is genetic. Personality can be changed, but such changes are apparent only over the course of several years.
9.4 The Big Five is the dominant taxonomy of personality; other taxonomies include the Myers- Briggs Type Inventory and Holland’s RIASEC model.
9.5 Hofstede’s taxonomy of cultural values includes individualism–collectivism, power distance, uncertainty avoidance, masculinity–femininity, and short-term vs. long-term orientation. More recent research by Project GLOBE has replicated many of those dimensions and added five other means to distinguish among cultures: gender egalitarianism, assertiveness, future orientation, performance orientation, and humane orientation.
TA K E AWAY S
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9.6 Conscientiousness has a moderate positive relationship with job performance and a moder- ate positive relationship with organizational commitment. It has stronger effects on these outcomes than the rest of the Big Five.
9.7 Personality tests are useful tools for organizational hiring. Research suggests that applicants do “fake” to some degree on the tests, but faking does not significantly lower the correlation between test scores and the relevant outcomes.
Here are the answers to the tests of creative thinking in Figure 9-5: (1) A towel. (2) They were triplets. (3) The letter U. (4) Draw a line to turn the + into a 4. (5) Solving this puzzle liter- ally requires you to “think outside the box” (yes, that’s where it comes from!). Nowhere in the instructions did it state that you needed to keep the lines inside the square formed by the dots. Connect the dots using the four lines shown below:
K E Y T E R M S
• Personality p. 266 • Traits p. 266 • Cultural values p. 266 • Conscientiousness p. 266 • Agreeableness p. 266 • Neuroticism p. 266 • Openness to experience p. 266 • Extraversion p. 266 • Big Five p. 266 • Accomplishment striving p. 270 • Communion striving p. 271 • Zero acquaintance p. 271 • Status striving p. 273 • Positive affectivity p. 273 • Negative affectivity p. 274 • Differential exposure p. 274 • Differential reactivity p. 274 • Locus of control p. 274 • Myers-Briggs Type Indicator
(MBTI) p. 279
• Interests p. 279 • RIASEC model p. 279 • Culture p. 280 • Individualism–collectivism p. 281 • Power distance p. 281 • Uncertainty avoidance p. 281 • Masculinity–femininity p. 281 • Short-term vs. long-term
orientation p. 281 • Project GLOBE p. 281 • Ethnocentrism p. 283 • Typical performance p. 285 • Maximum performance p. 285 • Situational strength p. 286 • Trait activation p. 286 • Integrity tests p. 288 • Clear purpose tests p. 288 • Veiled purpose tests p. 288 • Faking p. 290
9.1 Assume that you applied for a job and were asked to take a personality test, like the one offered by Kronos. How would you react? Would you view the organization with which you were applying in a more or less favorable light? Why?
9.2 Research on genetic influences on personality suggests that more than half of the varia- tion in personality is due to nurture—to life experiences. What life experiences could make
D I S C U S S I O N Q U E S T I O N S
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someone more conscientious? More agreeable? More neurotic? More extraverted? More open to new experiences?
9.3 Consider the personality dimensions included in the Myers-Briggs Type Inventory and the RIASEC model. If you had to “slot” those dimensions into the Big Five, would you be able to do so? Which dimensions don’t seem to fit?
9.4 Consider the profile of the United States on Hofstede’s cultural values, as shown in Table 9-3. Do you personally feel like you fit the U.S. profile, or do your values differ in some respects? If you served as an expatriate, meaning you were working in another country, which cultural value differences would be most difficult for you to deal with?
9.5 If you owned your own business and had a problem with employee theft, would you use an integrity test? Why or why not?
How exactly has Epstein prioritized personality in shaping the Cubs? One way is by instructing his scouts to get to know prospects as people. Scouts are instructed to list three examples of times when players have overcome adversity on the field, and three examples of times they’ve done so off the field. Scouts are also instructed to ask anyone they can about the prospect’s traits and qualities, from guidance counselors to girlfriends to family members. How does the prospect treat others when no one is looking? Is the prospect motivated by money and fame or competi- tion and winning? Short scouting reports with boxes to be checked were quickly replaced by detailed summaries several pages long. Speaking of Kyle Schwarber, one of the team’s better hit- ters, Epstein recalled, “Scouts loved the bat. We all loved the bat. Our statistical model loved the bat. And makeup was huge. Stan Zielinski, the area scout, did a great job getting to know Kyle inside and out . . . he’s the perfect player to have as a franchise player because he can be one of your best players who everybody else wants to follow because of his character.”
Another way is by prioritizing everyday positional players over pitchers who only start once every five games. Noted Epstein, “And there were a lot of good arms available so the debate in the draft room really crystallized. It was like, ‘We can choose a pitcher who is going to move quickly and can help us win every fifth day, but pitchers have a really hard time leading. They can lead the starting rotation after they get established a little bit, but it’s hard for them to lead the team. . . . We are going to define our identity . . . we want players who are invested in their teammates . . . we want players we trust can respond to adversity. We want players other players like being around.” By focusing on players who are on the field every day, Epstein wound up creating a culture—not just a collection of personality traits.
Epstein feels vindication for his personality focus by comparing the 2016 team to some of the other Cubs teams that had made the playoffs a decade earlier. “What was the personality of those Cubs teams?” he asked. “They had been to the playoffs in ’07, ’08, but what was the per- sonality? Who were the leaders?” The 2016 team had those leaders, and that was by design.
9.1 When Epstein talks about “character,” “makeup,” and “ethos,” what personality traits does he seem to be prioritizing?
9.2 Do you think professional baseball scouts can get an accurate read of a prospect’s personal- ity from observing him and talking to those who know him? Would it be wise for the Cubs to use personality tests for that purpose?
9.3 Do the personality traits needed to be a successful baseball player differ from the traits needed to be a successful president of baseball operations? In what way?
Source: T. Verducci, The Cubs Way: The Zen of Building the Best Team in Baseball and Breaking the Curse. New York: Crown Archetype, 2017.
C A S E : C H I C AG O C U B S
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EXERCISE: GUESSING PERSONALITY PROFILES
The purpose of this exercise is to explore how noticeable the Big Five personality dimensions are among classmates. This exercise uses groups, so your instructor will either assign you to a group or ask you to create your own group. The exercise has the following steps:
9.1 Individually, complete the Big Five measure found in the OB Assessments box in the chapter.
9.2 Write your scores on a small white piece of paper, in the following format: C =, A =, N =, O =, E =. Try to disguise your handwriting to make it as plain and generic as possible. Fold your piece of paper so that others cannot see your scores.
9.3 In your group, mix up the pieces of paper. Begin by having one group member choose a piece of paper, reading the CANOE scores aloud. The group should then try to come to con- sensus on which member the scores belong to, given the norms for the various dimensions (C = 14, A = 16, N = 10, O = 15, E = 13). Keep in mind that group members may wind up reading their own pieces of paper aloud in some cases. Once the group guesses which member the paper belongs to, they should place the paper in front of that member.
9.4 Moving clockwise, the next group member should choose one of the remaining pieces of paper, continuing as before. The process repeats until all the pieces of paper have been assigned to a member. Members can be assigned only one piece of paper, and no switching is permitted once an assignment has been made.
9.5 Group members should then announce whether the piece of paper assigned to them was in fact their set of scores. If the assignment was incorrect, they should find their actual piece of paper and describe the differences in the scores.
9.6 Class discussion (whether in groups or as a class) should center on the following topics: How accurate were the guesses? Were the guesses more accurate in groups that knew one another well than in groups with less familiarity? Which personality dimensions were relied upon most heavily when making assignment decisions? What is it that makes those dimen- sions more immediately observable?
9.1 Funder, D.C. “Personal- ity.” Annual Review of Psychology 52 (2001), pp. 197–221; and Hogan, R.T. “Personal- ity and Personality Mea- surement.” Handbook of Industrial and Organiza- tional Psychology, Vol. 2, ed. M.D. Dunnette and L.M. Hough. Palo Alto, CA: Consulting Psy- chologists Press, 1991, pp. 873–919.
9.2 Hogan, “Personal- ity and Personality Measurement.”
9.3 Ibid.; Fleeson, W., and P. Gallagher. “The Implications of Big Five Standing for the Distribution of Trait Manifestation in Behav- ior: Fifteen Experience- Sampling Studies and a Meta-Analysis.” Journal of Personality and Social
Psychology 97 (2009), pp. 1097–1114.
9.4 Rokeach, M. The Nature of Human Values. New York: The Free Press, 1973; and Steers, R.M., and C.J. Sanchez- Runde. “Culture, Motivation, and Work Behavior.” In Blackwell Handbook of Cross- Cultural Management, ed. M.J. Gannon and
E N D N OT E S
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K.L. Newman. Malden, MA: Blackwell, 2002, pp. 190–213.
9.5 Goldberg, L.R. “From Ace to Zombie: Some Explorations in the Lan- guage of Personality.” In Advances in Personality Assessment, Vol. 1, ed. C.D. Spielberger and J.N. Butcher. Hillsdale, NJ: Erlbaum, 1982, pp. 203–34; Allport, G.W., and H.S. Odbert. “Trait-Names: A Psycho- Lexical Study.” Psycho- logical Monographs 47 (1936), Whole No. 211; and Norman, W.T. 2800 Personality Trait Descrip- tors: Normative Operating Characteristics for a Uni- versity Population. Ann Arbor: University of Michigan Department of Psychology, 1967.
9.6 Tupes, E.C., and R.E. Christal. Recurrent Per- sonality Factors Based on Trait Ratings. USAF ASD Technical Report No. 61–97, Lackland Air Force Base, TX: United States Air Force, 1961, reprinted in Journal of Personality 60, pp. 225–51; Nor- man, W.T. “Toward an Adequate Taxonomy of Personality Attributes: Replicated Factor Structure in Peer Nomination Personality Ratings.” Journal of Abnormal and Social Psychology 66 (1963), pp. 574–83; Dig- man, J.M., and N.K. Takemoto-Chock. “Fac- tors in the Natural Lan- guage of Personality: Re-Analysis, Compari- son, and Interpretation of Six Major Studies.”
Multivariate Behavioral Research 16 (1981), pp. 149–70; McCrae, R.R., and P.T. Costa Jr. “Updating Norman’s ‘Adequate Taxonomy’: Intelligence and Per- sonality Dimensions in Natural Language and in Questionnaires.” Journal of Personality and Social Psychology 49 (1985), pp. 710–21; and Goldberg, L.R. “An Alternative ‘Descrip- tion of Personality’: The Big-Five Factor Structure.” Journal of Personality and Social Psychology 59 (1990), pp. 1216–29.
9.7 Goldberg, L.R. “Lan- guage and Individual Differences: The Search for Universals in Personality Lexicons.” In Review of Personality and Social Psychology, Vol. 2, ed. L. Wheeler. Beverly Hills, CA: Sage, 1981, pp. 141–65.
9.8 Arvey, R.D., and T.J. Bouchard Jr. “Genetics, Twins, and Organiza- tional Behavior.” In Research in Organiza- tional Behavior, Vol. 16, ed. B.M. Staw and L.L. Cummings. Greenwich, CT: JAI Press, 1994, pp. 47–82.
9.9 Loehlin, J.C. Genes and Environment in Per- sonality Development. Newbury Park, CA: Sage, 1992.
9.10 Ibid.
9.11 Roberts, B.W.; K.E. Walton; and W. Viechtbauer. “Patterns of Mean-Level Change in Personality Traits
across the Life Course: A Meta-Analysis of Longitudinal Studies.” Psychological Bulletin 132 (2006), pp. 1–25.
9.12 Cohen, J. Statistical Power Analysis for Behavioral Sciences, 2nd ed. Hillsdale, NJ: Erlbaum, 1988.
9.13 Loehlin, Genes and Environment.
9.14 Roberts et al., “Patterns of Mean-Level Change in Personality Traits across the Life Course”; Jackson, J.J.; T. Bogg; K.E. Walton; D. Wood; P.D. Harms; J. Lodi- Smith; G.W. Edmonds; and B.W. Roberts. “Not All Conscientious- ness Scales Change Alike: A Multimethod, Multisample Study of Age Differences in the Facets of Conscien- tiousness.” Journal of Personality and Social Psychology 96 (2009), pp. 446–59; and Soto, C.J.; O.P. John; S.D. Gosling; and J. Potter. “Age Differences in Personality Traits from 10 to 65: Big Five Domains and Facets in a Large Cross-Sectional Sample.” Journal of Personality and Social Psychology 100 (2011), pp. 330–48.
9.15 Saucier, G. “Mini- Markers: A Brief Version of Goldberg’s Unipolar Big-Five Markers.” Journal of Personality Assessment 63 (1994), pp. 506–16; Goldberg, L.R. “The Development of Mark- ers for the Big-Five Factor Structure.”
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Psychological Assessment 4 (1992), pp. 26–42; and McCrae, R.R., and P.T. Costa Jr. “Valida- tion of the Five-Factor Model of Personality Across Instruments and Observers.” Journal of Personality and Social Psychology 52 (1987), pp. 81–90.
9.16 Barrick, M.R., and M.K. Mount. “The Big Five Personality Dimensions and Job Performance: A Meta- Analysis.” Personnel Psychology 44 (1991), pp. 1–26.
9.17 Barrick, M.R.; G.L. Stewart; and M. Piotrowski. “Personality and Job Performance: Test of the Mediating Effects of Motivation among Sales Repre- sentatives.” Journal of Applied Psychology 87 (2002), pp. 43–51.
9.18 Barrick, M.R.; M.K. Mount; and J.P. Strauss. “Con- scientiousness and Performance of Sales Representatives: Test of the Mediating Effects of Goal Setting.” Journal of Applied Psychology 78 (1993), pp. 715–22.
9.19 Stewart, G.L. “Trait Bandwidth and Stages of Job Performance: Assessing Differential Effects for Consci- entiousness and its Subtraits.” Journal of Applied Psychology 84 (1999), pp. 959–68.
9.20 Judge, T.A.; C.A. Hig- gins; C.J. Thoreson; and M.R. Barrick. “The
Big Five Personality Traits, General Mental Ability, and Career Success across the Life Span.” Personnel Psychology 52 (1999), pp. 621–52.
9.21 Friedman, H.S.; J.S. Tucker; J.E. Schwartz; L.R. Martin; C. Tomlinson-Keasey; D.L. Wingard; and M.H. Criqui. “Child- hood Conscientious- ness and Longevity: Health Behaviors and Cause of Death.” Jour- nal of Personality and Social Psychology 68 (1995), pp. 696–703.
9.22 Roberts, B.W.; O.S. Chernyshenko; S. Stark; and L.R. Gold- berg. “The Structure of Conscientiousness: An Empirical Investiga- tion Based on Seven Major Personality Dimensions.” Personnel Psychology 58 (2005), pp. 103–39.
9.23 Barrick et al., “Person- ality and Job Perfor- mance”; and Hogan, J., and B. Holland. “Using Theory to Evaluate Personality and Job-Performance Rela- tions: A Socioanalytic Perspective.” Journal of Applied Psychology 88 (2003), pp. 100–12.
9.24 Barrick and Mount, “The Big Five Personal- ity Dimensions.”
9.25 Frei, R.L., and M.A. McDaniel. “Validity of Customer Service Measures in Personnel Selection: A Review of Criterion and Construct Evidence.”
Human Performance 11 (1998), pp. 1–27.
9.26 Graziano, W.G.; L.A. Jensen-Campbell; and E.C. Hair. “Perceiving Interpersonal Conflict and Reacting to It: The Case for Agree- ableness.” Journal of Personality and Social Psychology 70 (1996), pp. 820–35.
9.27 Mehl, M.R.; S.D. Gosling; and J.W. Pennebaker. “Person- ality in Its Natural Habitat: Manifestations and Implicit Folk Theories of Personality in Daily Life.” Journal of Personality and Social Psychology 90 (2006), pp. 862–77.
9.28 Albright, L.; D.A. Kenny; and T.E. Mal- loy. “Consensus in Personality Judgments at Zero Acquaintance.” Journal of Personality and Social Psychology 55 (1988), pp. 387–95; and Levesque, M.J., and D.A. Kenny. “Accuracy of Behav- ioral Predictions at Zero Acquaintance: A Social Relations Analysis.” Journal of Personality and Social Psychology 65 (1993), pp. 1178–87.
9.29 Barrick et al., “Per- sonality and Job Performance.”
9.30 Judge, T.A.; J.E. Bono; R. Ilies; and M.W. Gerhardt. “Personality and Leadership: A Qualitative and Quanti- tative Review.” Journal of Applied Psychology 87 (2002), pp. 765–80.
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9.31 Ibid.
9.32 Thoreson, C.J.; S.A. Kaplan; A.P. Barsky; C.R. Warren; and K. de Chermont. “The Affec- tive Underpinnings of Job Perceptions and Attitudes: A Meta- Analytic Review and Integration.” Psychologi- cal Bulletin 129 (2003), pp. 914–45.
9.33 Ibid.; Judge, T.A.; D. Heller; and M.K. Mount. “Five-Factor Model of Personality and Job Satisfaction: A Meta-Analysis.” Journal of Applied Psychology 87 (2003), pp. 530–41; and Kaplan, S.; J.C. Bradley; J.N. Luchman; and D. Haynes. “On the Role of Positive and Negative Affectivity in Job Performance: A Meta-Analytic Investigation.” Journal of Applied Psychology 94 (2009), pp. 162–76.
9.34 Arvey, R.D.; T.J. Bouchard; N.L. Segal; and L.M. Abraham. “Job Satisfaction: Envi- ronmental and Genetic Components.” Journal of Applied Psychology 74 (1989), pp. 187–92.
9.35 Steel, P.; J. Schmidt; and J. Shultz. “Refin- ing the Relationship between Personality and Subjective Well- Being.” Psychological Bulletin 134 (2008), pp. 138–61; and Steel, P., and D.S. Ones. “Personality and Happi- ness: A National-Level Analysis.” Journal of Personality and Social Psychology 83 (2002), pp. 767–81.
9.36 Magnus, K.; E. Diener; F. Fujita; and W. Pavot. “Extraversion and Neuroticism as Predic- tors of Objective Life Events: A Longitudinal Analysis.” Journal of Personality and Social Psychology 65 (1992), pp. 1046–53.
9.37 Paunonen, S.V. “Big Five Predictors of Per- sonality and Replicated Predictions of Behav- ior.” Journal of Personal- ity and Social Psychology 84 (2003), pp. 411–24; and Asendorpf, J.B., and S. Wilpers. “Person- ality Effects on Social Relationships.” Journal of Personality and Social Psychology 74 (1998), pp. 1531–44.
9.38 Asendorpf and Wilpers, “Personality Effects on Social Relationships.”
9.39 Barrick, M.R., and M.K. Mount. “Select on Conscientiousness and Emotional Stabil- ity.” In Blackwell Hand- book of Principles of Organizational Behavior, ed. E.A. Locke. Malden, MA: Black- well, 2000, pp. 15–28.
9.40 Thoreson et al., “The Affective Underpinnings.”
9.41 Ibid.; and Kaplan et al., “On the Role of Positive and Negative Affectivity in Job Performance.”
9.42 DeNeve, K.M., and H. Cooper. “The Happy Personality: A Meta-Analysis of 137 Personality Traits and Subjective Well-Being.” Psychological Bulletin
124 (1998), pp. 197–229; Steel et al., “Refin- ing the Relationship between Personality and Subjective Well- Being”; and Steel and Ones, “Personality and Happiness.”
9.43 Bolger, N., and A. Zuckerman. “A Framework for Study- ing Personality in the Stress Process.” Journal of Personality and Social Psychology 69 (1995), pp. 890–902.
9.44 Ibid.
9.45 Friedman, M., and R.H. Rosenman. Type A Behavior and Your Heart. New York: Knopf, 1974.
9.46 Rotter, J.B. “General- ized Expectancies for Internal versus External Control of Reinforce- ment.” Psychological Monographs 80 (1966), pp. 1–28.
9.47 Judge, T.A., and J.E. Bono. “Relationship of Core Self-Evaluations Traits—Self-Esteem, Generalized Self- Efficacy, Locus of Control, and Emotional Stability—with Job Satisfaction and Job Performance: A Meta- Analysis.” Journal of Applied Psychology 86 (2001), pp. 80–92.
9.48 Ng, T.W.H.; K.L. Sorensen; and L.T. Eby. “Locus of Control at Work: A Meta- Analysis.” Journal of Organizational Behavior 27 (2006), pp. 1057–87.
9.49 Barrick and Mount, “The Big Five
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Personality Dimen- sions”; and Cellar, D.F.; M.L. Miller; D.D. Doverspike; and J.D. Klawsky. “Comparison of Factor Structures and Criterion-Related Validity Coefficients for Two Measures of Personality Based on the Five Factor Model.” Journal of Applied Psy- chology 81 (1996), pp. 694–704.
9.50 LePine, J.A.; J.A. Colquitt; and A. Erez. “Adaptability to Changing Task Contexts: Effects of General Cognitive Ability, Conscientious- ness, and Openness to Experience.” Personnel Psychology 53 (2000), pp. 563–93; and Thore- son, C.J.; J.C. Bradley; P.D. Bliese; and J.D. Thoreson. “The Big Five Personality Traits and Individual Job Performance Growth Trajectories in Mainte- nance and Transitional Job Stages.” Journal of Applied Psychology 89 (2004), pp. 835–53.
9.51 Shalley, C.E.; J. Zhou; and G.R. Oldham. “The Effects of Personal and Contextual Charac- teristics on Creativity: Where Should We Go from Here?” Journal of Management 30 (2004), pp. 933–58.
9.52 Zhou, J., and J.M. George. “When Job Dissatisfaction Leads to Creativity: Encourag- ing the Expression of Voice.” Academy of Management Journal 44 (2001), pp. 682–96.
9.53 Feist, G.J. “A Meta- Analysis of Personality in Scientific and Artistic Creativity.” Personality and Social Psychology Review 2 (1998), pp. 290–309.
9.54 Stead, D. “You Are Getting Creative . . . Very Creative.” Busi- nessWeek, May 12, 2008, p. 18.
9.55 Edmondson, G. “BMW’s Dream Fac- tory.” BusinessWeek, October 16, 2006, pp. 70–80.
9.56 Myers, I.B., and M.H. McCaulley. Manual: A Guide to the Develop- ment and Use of the Myers-Briggs Type Indi- cator. Palo Alto, CA: Consulting Psycholo- gists Press, 1985.
9.57 Jung, C.G. The Col- lected Works of C. G. Jung, Vol. 6: Psycho- logical Types, trans. H.G. Baynes, ed. R. F. Hull. Princeton, NJ: Princeton University Press, 1971.
9.58 Gardner, W.L., and M.J. Martinko. “Using the Myers-Briggs Type Indi- cator to Study Manag- ers: A Literature Review and Research Agenda.” Journal of Management 22 (1996), pp. 45–83; and “What Is Your Myers Briggs Personal- ity Type?” http://www .personalitypathways .com/type_inventory. html (accessed March 18, 2007).
9.59 Gardner and Martinko, “Using the Myers- Briggs Type Indicator.”
9.60 Ibid.
9.61 Holland, J.L. “A Theory of Vocational Choice.” Journal of Counseling Psychology 6 (1959), pp. 35–45; and Holland, J.L. Making Vocational Choices: A Theory of Vocational Personalities and Work Environments, 3rd ed. Odessa, FL: Psycho- logical Assessment Resources, 1997.
9.62 Mount, M.K.; M.R. Barrick; S.M. Scullen; and J. Rounds. “Higher- Order Dimensions of the Big Five Personality Traits and the Big Six Vocational Interests.” Personnel Psychology 58 (2005), pp. 447–78.
9.63 Strong, E.K. “An 18-Year Longitudinal Report on Interests.” In The Strong Vocational Interest Blank: Research and Uses, ed. W.L. Layton. Minneapolis, MN: University of Min- nesota Press, 1960.
9.64 Holland, Making Voca- tional Choices; “Pro- viding Holland Code Resources Worldwide” (n.d.), Hollandcodes. com; and Armstrong, P.I.; W. Allison; and J. Rounds. “Development and Initial Validation of Brief Public Domain RIASEC Marker Scales.” Journal of Vocational Behavior 73 (2008), pp. 287–99.
9.65 Muchinsky, P.M. “Applications of Hol- land’s Theory in Indus- trial and Organizational Settings.” Journal of Vocational Behavior 55
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(1999), pp. 127–35; and Van Iddekinge, C.H.; D.J. Putka; and J.P. Campbell. “Recon- sidering Vocational Interests for Personnel Selection: The Validity of an Interest-Based Selection Test in Rela- tion to Job Knowledge, Job Performance, and Continuance Intentions.” Journal of Applied Psychology 96 (2011), pp. 13–33.
9.66 Campbell, D.P., and F.H. Borgen. “Hol- land’s Theory and the Development of Interest Inventories.” Journal of Vocational Behavior 55 (1999), pp. 86–101; and Rayman, J., and L. Atanasoff. “Holland’s Theory of Career Intervention: The Power of the Hexagon.” Journal of Vocational Behavior 55 (1999), pp. 114–26.
9.67 Tsui, A.S.; S.S. Nifad- kar; and A.Y. Ou. “Cross-National, Cross- Cultural Organizational Behavior Research: Advances, Gaps, and Recommendations.” Journal of Management 33 (2007), pp. 426–78.
9.68 House, R.J.; P.J. Hanges; M. Javidan; P.W. Dorfman; and V. Gupta. Culture, Leader- ship, and Organizations: The GLOBE Study of 62 Societies. Thousand Oaks, CA: Sage, 2004.
9.69 Kroeber, A.L., and C. Kluckhohn. Culture: A Critical Review of Concepts and Defini- tions. Cambridge, MA:
Harvard University Press, 1952; and Hof- stede, G. Cultures and Organizations: Software of the Mind. London: McGraw-Hill, 1991.
9.70 Zou, X.; K.P. Tam; M.W. Morris; S.l. Lee; I.Y.M. Lau; and C.Y. Chiu. “Culture as Common Sense: Perceived Consensus versus Personal Beliefs as Mechanisms of Cultural Influence.” Journal of Personality and Social Psychology 97 (2009), pp. 579–97.
9.71 Heine, S.J., and E.E. Buchtel. “Personality: The Universal and the Culturally Specific.” Annual Review of Psychology 60 (2009), pp. 369–94.
9.72 McCrae, R.R.; A. Ter- racciano; and 79 Mem- bers of the Personality Profiles of Cultures Proj- ect. “Personality Profiles of Cultures: Aggregate Personality Traits.” Journal of Personality and Social Psychology 89 (2005), pp. 407–25.
9.73 Schwartz, S.H. “Univer- sals in the Content and Structure of Values: Theoretical Advances and Empirical Tests in 20 Countries.” Advances in Experimental Social Psychology, Vol. 25, ed. M.P. Zanna. San Diego, CA: Academic Press, 1992, pp. 1–65.
9.74 House et al., Culture, Leadership, and Organizations.
9.75 Hofstede, G. Cul- ture’s Consequences:
Comparing Values, Behaviors, Institutions, and Organizations across Nations. Thou- sand Oaks, CA: Sage, 2001; and Kirkman, B.L.; K.B. Lowe; and C.B. Gibson. “A Quarter Century of Culture’s Consequences: A Review of Empirical Research Incorporating Hofstede’s Cultural Values Framework.” Journal of International Business Studies 37 (2006), pp. 285–320.
9.76 Hofstede, G., and M.H. Bond. “The Confucius Connection: From Cultural Roots to Economic Growth.” Organizational Dynam- ics 16 (1988), pp. 5–21.
9.77 House et al., Culture, Leadership, and Organizations.
9.78 Chen, Y.; K. Leung; and C.C. Chen. “Bring- ing National Culture to the Table: Making a Difference with Cross- Cultural Differences and Perspectives.” Acad- emy of Management Annals 3 (2009), pp. 217–49.
9.79 Oyserman, D.; H.M. Coon; and M. Kem- melmeier. “Rethinking Individualism and Col- lectivism: Evaluation of Theoretical Assumptions and Meta-Analyses.” Psychological Bulletin 128 (2002), pp. 3–72; Earley, P.C., and C.B. Gibson. “Taking Stock in Our Progress on Individualism– Collectivism: 100 Years of Solidarity
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and Community.” Journal of Manage- ment 24 (1998), pp. 265–304; and Taras, V.; B.L. Kirkman; and P. Steel. “Examining the Impact of Culture’s Consequences: A Three- Decade, Multilevel, Meta-Analytic Review of Hofstede’s Cultural Value Dimensions. Journal of Applied Psychology 95 (2010), pp. 405–39.
9.80 Jackson, C.L.; J.A. Colquitt; M.J. Wesson; and C.P. Zapata- Phelan. “Psychological Collectivism: A Mea- surement Validation and Linkage to Group Member Performance.” Journal of Applied Psy- chology 91 (2006), pp. 884–99; and Dierdorff, E.C.; S.T. Bell; and J.A. Belohlav. “The Power of ‘We’: Effects of Psy- chological Collectivism on Team Performance Over Time.” Journal of Applied Psychology 96 (2011), pp. 247–62.
9.81 Wasti, S.A., and O. Can. “Affective and Normative Commit- ment to Organization, Supervisor, and Coworker: Do Collec- tivist Values Matter?” Journal of Vocational Behavior 73 (2008), pp. 404–13.
9.82 Earley and Gibson, “Taking Stock in Our Progress.”
9.83 Kirkman et al., “A Quarter Century.”
9.84 Black, J.S. “The Rela- tionship of Personal Characteristics with the
Adjustment of Japanese Expatriate Managers.” Management Interna- tional Review 30 (1990), pp. 119–34.
9.85 Barrick, M.R.; M.K. Mount; and T.A. Judge. “Personality and Perfor- mance at the Beginning of the New Millennium: What Do We Know and Where Do We Go Next?” International Journal of Selection and Assessment 9 (2001), pp. 9–30; and Hough, L.M., and A. Furnham. “Use of Personality Variables in Work Settings.” In Handbook of Psychology, Vol. 12, ed. W.C. Borman, D.R. Ilgen, and R.J. Klimoski. Hoboken, NJ: Wiley, 2003, pp. 131–69.
9.86 Judge, T. A., and R. Ilies. “Relationship of Personality to Perfor- mance Motivation: A Meta-Analysis.” Journal of Applied Psychology 87 (2002), pp. 797–807.
9.87 Sackett, P.R.; S. Zedeck; and L. Fogli. “Relations Between Measures of Typical and Maximum Job Performance.” Journal of Applied Psychology 73 (1988), pp. 482–86.
9.88 Hough and Furnham, “Use of Personality Variables in Work Settings”; and Ilies, R.; I.S. Fulmer; M. Spitzmuller; and M.D. Johnson. “Personality and Citizenship Behav- ior: The Mediating Role of Job Satisfaction.” Journal of Applied
Psychology 94 (2009), pp. 945–59.
9.89 Mount, M.K., and M.R. Barrick. “The Big Five Personality Dimen- sions: Implications for Research and Practice in Human Resources Man- agement.” In Research in Personnel and Human Resource Management, ed. G.R. Ferris. Green- wich, CT: JAI Press, 1995, pp. 153–200.
9.90 Ilies et al., “Personality and Citizenship Behav- ior”; and Judge et al., “Five-Factor Model.”
9.91 Salgado, J.F. “The Big Five Personality Dimen- sions and Counterpro- ductive Behaviors.” International Journal of Selection and Assessment 10 (2002), pp. 117–25.
9.92 Cullen, M.J., and P. Sackett. “Personality and Counterproductive Work Behavior.” In Per- sonality and Work, ed. M.A. Barrick and A.M. Ryan. San Francisco: Jossey-Bass, 2003, pp. 150–82.
9.93 Cooper-Hakim, A., and C. Viswesvaran. “The Construct of Work Commitment: Testing an Integrative Frame- work.” Psychological Bulletin 131 (2005), pp. 241–59; and Mathieu, J.E., and D.M. Zajac. “A Review and Meta-Analysis of the Antecedents, Corre- lates, and Consequences of Organizational Com- mitment.” Psychological Bulletin 108 (1990), pp. 171–94.
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9.94 Salgado, “The Big Five Personality Dimensions”; and Zim- merman., R.D. “Under- standing the Impact of Personality Traits on Individuals’ Turnover Decisions: A Meta- Analytic Path Model.” Personnel Psychology 61 (2008), pp. 309–48.
9.95 Cooper-Hakim and Viswesvaran, “The Construct of Work Commitment.”
9.96 Grant, S., and J. Langan-Fox. “Personal- ity and Occupational Stressor–Strain Rela- tionships: The Role of the Big Five.” Journal of Occupational Health Psychology 12 (2007), pp. 20–33.
9.97 Mischel, W. “The Inter- action of Person and Situation.” In Personality at the Crossroads: Current Issues in Interactional Psychology, ed. D. Mag- nusson and N.S. Endler. Hillsdale, NJ: Erlbaum, 1977, pp. 333–52; and Weiss, H.M., and S. Adler. “Personality and Organizational Behavior.” In Research in Organizational Behavior, Vol. 6, ed. B.M. Staw and L.L. Cummings. Greenwich, CT: JAI Press, 1984, pp. 1–50.
9.98 Barrick, M.R., and M.K. Mount. “Auton- omy as a Moderator of the Relationship between the Big Five Personality Dimensions and Job Performance.” Journal of Applied Psy- chology 78 (1993), pp. 111–18.
9.99 Tett, R.P., and D.D. Burnett. “A Person- ality Trait-Based Interactionist Model of Job Performance.” Journal of Applied Psychology 88 (2003), pp. 500–17.
9.100 Barrick, M.R.; J.A. Shaffer; and S.W. DeGrassi. “What You See May Not Be What You Get: Relationships among Self-Presentation Tactics and Ratings of Interview and Job Performance.” Journal of Applied Psychol- ogy 94 (2009), pp. 1394–1411.
9.101 Barrick, M.R.; G.K. Patton; and S.N. Haugland. “Accu- racy of Interviewer Judgments of Job Applicant Personality Traits.” Personnel Psychology 53 (2000), pp. 925–51.
9.102 Piotrowski, C., and T. Armstrong. “Current Recruitment and Selection Practices: A National Survey of Fortune 1000 Firms.” North American Journal of Psychology 8 (2006), pp. 489–96; and Frauenheim, E. “More Companies Go with Online Tests to Fill in the Blanks.” Workforce Manage- ment, May 2011, pp. 12–13.
9.103 Frauenheim, E. “The (Would-Be) King of HR Software.” Work- force Management, August 14, 2006, pp. 34–39; Frauenheim,
E. “Unicru Beefs Up Data in Latest Screen- ing Tool.” Workforce Management, March 13, 2006, pp. 9–10; Overholt, A. “True or False: You’re Hiring the Right People.” Fast Company, January 2002, p. 110; and Dixon, P. “Employment Application Kiosks and Sites. Excerpted from the 2003 Job Search Privacy Study: Job Searching in the Networked Environ- ment: Consumer Privacy Benchmarks.” World Privacy Forum, November 11, 2003, http://www.world privacyforum.org.
9.104 Frauenheim, “The (Would-Be) King of HR Software.”
9.105 Overholt, “True or False.”
9.106 Ibid.
9.107 Frauenheim, “Unicru Beefs Up Data.”
9.108 Gellar, A. “Hiring by Computer,” (n.d.), http://jobboomcc. canoe.ca/News/2004/ 06/09/1225576-sun. html.
9.109 Overholt, “True or False.”
9.110 Dixon, “Employment Application Kiosks and Sites.”
9.111 Frauenheim, “The (Would-Be) King.”
9.112 Sackett, P.R., and M.M. Harris. “Honesty Testing for Personnel Selec- tion: A Review and
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Critique.” Personnel Psychology 37 (1984), pp. 221–45; Sackett, P.R.; L.R. Burris; and C. Callahan. “Integrity Testing for Personnel Selection: An Update.” Personnel Psychology 42 (1989), pp. 491–528; Sackett, P.R., and J.E. Wanek. “New Developments in the Use of Mea- sures of Honesty, Integrity, Conscien- tiousness, Dependabil- ity, Trustworthiness, and Reliability for Personnel Selec- tion.” Personnel Psy- chology 49 (1996), pp. 787–829; Berry, C.M.; P.R. Sackett; and S. Wiemann. “A Review of Recent Developments in Integ- rity Test Research.” Personnel Psychology 60 (2007), pp. 271–301; and Miner, J.B., and M.H. Capps. How Honesty Testing Works. Westport, CT: Quorum Books, 1996.
9.113 Sackett et al., “Integrity Testing”; and Ones, D.S.; C. Viswesvaran; and F.L. Schmidt. “Compre- hensive Meta-Analysis of Integrity Test Validities: Findings and Implications for Personnel Selection and Theories of Job Performance.” Jour- nal of Applied Psychol- ogy 78 (1993), pp. 679–703.
9.114 Wanek, J.E.; P.R. Sackett; and D.S. Ones. “Towards an Understanding of
Integrity Test Similari- ties and Differences: An Item-Level Analysis of Seven Tests.” Personnel Psy- chology 56 (2003), pp. 873–94; and Mar- cus, B.; S. Hoft; and M. Riediger. “Integrity Tests and the Five- Factor Model of Personality: A Review and Empirical Test of Two Alternative Posi- tions.” International Journal of Selection and Assessment 14 (2006), pp. 113–30.
9.115 Marcus, B.; K. Lee; and M.C. Ashton. “Personality Dimen- sions Explaining Relationships between Integrity Tests and Counterproductive Behavior: Big Five, or One in Addition?” Per- sonnel Psychology 60 (2007), pp. 1–34; and Berry et al., “A Review of Recent Develop- ments in Integrity Test Research.”
9.116 Bernardin, H.J., and D.K. Cooke. “Validity of an Honesty Test in Predicting Theft among Convenience Store Employees.” Academy of Management Journal 36 (1993), pp. 1097–1108.
9.117 Ones et al., “A Comprehensive Meta-Analysis.”
9.118 Ibid.
9.119 Goffin, R.D., and N.D. Christiansen. “Correcting Personal- ity Tests for Faking:
A Review of Popular Personality Tests and an Initial Survey of Researchers.” Interna- tional Journal of Selec- tion and Assessment 11 (2003), pp. 340–44.
9.120 Birkeland, S.A.; T.M. Manson; J.L. Kisamore; M.T. Bran- nick; and M.A. Smith. “A Meta-Analytic Investigation of Job Applicant Faking on Personality Mea- sures.” International Journal of Selection and Assessment 14 (2006), pp. 317–35; and Viswesvaran, C., and D.S. Ones. “Meta- Analysis of Fakability Estimates: Implica- tions for Personality Measurement.” Educa- tional and Psychologi- cal Measurement 59 (1999), pp. 197–210.
9.121 Miner and Capps, How Honesty Testing Works; Cunningham, M.R.; D.T. Wong; and A.P. Barbee. “Self- Presentation Dynam- ics on Overt Integrity Tests: Experimental Studies of the Reid Report.” Journal of Applied Psychology 79 (1994), pp. 643–58; and Ones, D.S., and C. Viswesvaran. “The Effects of Social Desir- ability and Faking on Personality and Integ- rity Assessment for Personnel Selection.” Human Performance 11 (1998), pp. 245–69.
9.122 Ones, D.S.; S. Dilchert; C. Viswes- varan; and T.A. Judge.
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“In Support of Per- sonality Assessment in Organizational Settings.” Personnel Psychology 60 (2007), pp. 995–1027; and Tett, R.P., and N.D. Christiansen. “Person- ality Tests at the Cross- roads: A Response to Morgeson, Campion, Dipboye, Hollenbeck, Murphy, and Schmitt
(2007).” Personnel Psychology 60 (2007), pp. 967–93.
9.123 Cortina, J.M.; N.B. Goldstein; S.C. Payne; H.K. Davison; and S.W. Gilliland. “The Incremental Validity of Interview Scores over and above Cognitive Ability and Conscientiousness
Scores.” Personnel Psychology 53 (2000), pp. 325–51.
9.124 Schmidt, F.L., and J.E. Hunter. “Select on Intelligence.” In Blackwell Handbook of Principles of Organiza- tional Behavior, ed. E.A. Locke. Malden, MA: Blackwell, 2000, pp. 3–14.
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10
LEARNING GOALS
10.1 What is ability? 10.2 What are the various types of cognitive ability? 10.3 What are the various types of emotional ability? 10.4 What are the various types of physical ability? 10.5 How does cognitive ability affect job performance and organizational commitment? 10.6 What steps can organizations take to hire people with high levels of cognitive ability?
After reading this chapter, you should be able to answer the following questions:
Ability
INDIVIDUAL OUTCOMES
INDIVIDUAL MECHANISMS
INDIVIDUAL CHARACTERISTICS
ORGANIZATIONAL MECHANISMS
Organizational Culture
Organizational Structure
Teams: Processes &
Communication
Motivation
Trust, Justice, & Ethics
Teams: Characteristics &
Diversity Learning &
Decision Making
Ability
Stress
Leadership: Power &
Negotiation
Job Satisfaction
Leadership: Styles &
Behaviors
Organizational Commitment
Job Performance
GROUP MECHANISMS
Personality & Cultural Values
Ability
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I f you go to the Federal Bureau of Investigation’s home page, you’ll see links to lists of most wanted criminals, ter- rorists, and victims of kidnappings and other missing per-
sons. You might also see an announcement regarding the filing of charges against computer hackers, or a warning to the public regarding a new type of investment fraud. In fact, it won’t take you long to realize that the scope of the FBI’s responsibilities is remarkably broad. The agency not only provides assistance to municipal, state, federal, and interna- tional law enforcement agencies, but it also conducts inves- tigations into cybercrime, business crime, public corruption, and terrorism. If that’s not enough, the FBI also runs programs that provide assistance to crime victims and their families.
With all these responsibilities, it should not be surprising to learn that there are many different types of jobs at the FBI. The first job that might come to mind is that of the special agent who does things like plan operations, interview sus- pects, and piece clues together to solve crimes. However, carrying out the agency’s mission also requires intelligence analysts, surveillance specialists, and linguists. Additionally, the FBI employs professionals involved in specialized fields such as accounting and finance, communications, counsel- ing, engineering, law, mathematics, and medicine. So, what
are the implications to the FBI of having employees involved in so many different types of jobs?
Although the FBI seeks to hire personnel who have similar values and regard for the role of justice in soci- ety, the agency also needs people who possess the spe- cific abilities required for the specific jobs that need to be filled. To accomplish this, the FBI conducts extensive test- ing of job-specific abilities during the hiring process. For example, when hiring intelligence analysts, the FBI tests for whether applicants possess strong reasoning abilities. This is because intelligence analysts need to be able to identify potential causes for a problem, critically evaluate hypoth- eses regarding potential causes in light of available informa- tion, and draw sound conclusions as to which hypothesis is most likely. As another example, the FBI tests for perceptual abilities of those interested in becoming surveillance spe- cialists. This is because surveillance personnel need to pay attention to details and recognize patterns in observations of people and objects. The FBI’s hiring process is expensive and time-consuming; however, it believes that the safety of the United States and its citizens depends on having per- sonnel with abilities that are tailored to the requirements of specific jobs.
FEDERAL BUREAU OF INVESTIGATION
©Marmaduke St. John/Alamy
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A B I L I T Y
The� topic� of� ability� is� probably� already� familiar� to� you.� This� is� because� “ability”� is� an� everyday� word�in�our�language,�and�we’ve�all�developed�a�pretty�good�understanding�of�our�own�abilities.� All�of�us�have�experience�doing�things�that�require�different�abilities,�and�we�received�feedback,�in� one�form�or�another,�as�to�how�well�we�did.�So�knowing�that�you’re�already�familiar�with�the�topic� of�ability,�why�would�we�write�an�entire�chapter�on�it�for�this�textbook?
Well�for�one�thing,�there�are�many�different�abilities,�some�of�which�are�important�but�might� not�be�as�familiar�to�you.�Another�reason�we’ve�included�a�chapter�on�ability�is,�although�it�might� seem�obvious�that�abilities�are�highly�related�to�effectiveness�in�jobs,�this�relationship�is�truer�in� some�circumstances�than�in�others.�Finally,�it�may�be�useful�to�understand�how�organizations�use� information�about�abilities�to�make�good�managerial�decisions.�Our�chapter�is�organized�around� these�three�issues.
Ability�refers�to�the�relatively�stable�capabilities�people�have�to�perform�a�particular�range�of� different�but�related�activities.1�In�contrast�to�skills,�which�can�be�improved�over�time�with�train- ing�and�experience,�ability�is�relatively�stable.�Although�abilities�can�change�slowly�over�time�with� instruction,�repeated�practice,�and�repetition,�the�level�of�a�given�ability�generally�limits�how�much� a�person�can�improve,�even�with�the�best�training�in�the�world.�One�reason�for�this�stability�relates� to�the�“nature�vs.�nurture”�question,�an�issue�that�has�been�much�debated�in�OB�(see�Chapter�9�on� personality�and�cultural�values�for�more�discussion�of�such�issues).�So,�are�abilities�a�function�of� our�genes,�or�are�they�something�we�develop�as�a�function�of�our�experiences�and�surroundings?
As� it� turns� out,� abilities� are� a� function� of� both� genes� and� the� environment,� and� the� amount� attributable�to�each�source�depends�somewhat�on�the�nature�of�the�ability.�Consider�for�a�moment� abilities� that� are� physical� in� nature.� Although� training� that� involves� weightlifting,� dancing,� and� swimming�can�improve�a�person’s�strength,�equilibrium,�and�endurance,�there�are�limits�to�how� much�improvement�is�possible.�As�an�example,�there�are�millions�of�people�who�take�golf�lessons� and� practice� their� swing� for� countless� hours� on� a� driving� range,� yet� the� vast� majority� of� these� people� could� never� compete� in� a� professional� golf� tournament� because� they� just� can’t� manage� to�consistently�hit�that�little�white�ball�straight�or�far�enough.�As�an�example�of�abilities�that�are� cognitive�in�nature,�you�likely�know�people�who,�even�if�they�went�to�the�best�schools�on�earth,� would�have�great�difficulty�doing�well�in�jobs�such�as�theoretical�astrophysics�that�require�a�lot�of� brainpower.
For�abilities�that�are�more�cognitive�in�nature,�such�as�those�we�mentioned�in�the�chapter�open- ing,�it�appears�that�genes�and�the�environment�play�roughly�equal�roles.2�However,�differences�in�
cognitive�abilities�due�to�the�environ- ment�become�less�apparent�as�people� get�older,�and�this�may�be�especially� true�for�the�effect�of�the�family�envi- ronment.3� As� an� example,� though� neglect,� abuse,� and� deprivation� may� have� a� negative� impact� on� how� children� fare� on� standardized� intel- ligence� tests,� that� negative� impact� does� not� tend� to� carry� over� into� adulthood.� Beyond� the� family� situa- tion,�there�are�some�other�factors�in� the�environment�that�affect�cognitive� ability.4�For�instance,�the�quantity�of� schooling�may�be�important�because� it� provides� opportunities� for� people� to� develop� knowledge� and� critical� thinking� skills.5� There’s� also� evi- dence�that�our�choice�of�occupations�
10.1 What is ability?
Few people have the phys- ical abilities necessary to
compete with professional golfers such as Annika
Sorenstam, who is widely considered to be the top female golfer of all time.
©John Gress/AP Images
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may� influence� our� cognitive� abilities.� Complex� work� develops� and� exercises� our� minds,� which� promotes�higher�performance�on�intelligence�tests.6�Finally,�certain�biological�factors�are�known� to�affect�cognitive�abilities�negatively�during�childhood.�Examples�include�malnutrition,�exposure� to� toxins� such� as� lead,� and� prenatal� exposure� to� alcohol.� In� fact,� over� the� last� century� average� scores�on�standardized�intelligence�tests�have�risen�significantly�in�industrialized�countries�as�the� quality�and�availability�of�education�and�health�factors�have�improved,�and�the�complexity�of�life� has�increased.7
W H AT D O E S I T M E A N F O R A N E M P LOY E E TO B E “A B L E ” ?
As�the�examples�in�the�previous�paragraphs�imply,�there�are�different�types�of�ability.�Whereas� the� golf� example� refers� to� physical� ability,� the� theoretical� astrophysics� example� refers� to� cog- nitive� ability.� In� fact,� there� are� many� different� facets� of� ability,� and� they� can� be� grouped� into� subsets�by�considering�similarities�in�the�nature�of�the�activities�involved.�As�we’ll�talk�about� in�the�sections�to�follow,�abilities�can�be�grouped�into�three�general�categories:�cognitive,�emo- tional,�and�physical.�As�our�OB Internationally�feature�illustrates,�there�may�be�some�abilities� that�do�not�fit�neatly�into�one�of�these�three�categories.�Nevertheless,�all�abilities�refer�to�what people can do.�That’s�in�contrast�to�personality�(the�subject�of�Chapter�9),�which�refers�to�what people are like�or�what people will likely do.�As�with�personality,�organizational�personnel�and� hiring�systems�focus�on�finding�applicants�who�possess�abilities�that�match�the�requirements� of�a�given�job.
C O G N I T I V E A B I L I T Y Cognitive ability�refers�to�capabilities�related�to�the�acquisition�and�application�of�knowledge�in� problem�solving.8�Cognitive�abilities�are�very�relevant�in�the�jobs�most�of�you�will�be�involved� with—that� is,� work� involving� the� use� of� information� to� make� decisions� and� solve� problems.� Chances�are�good�that�your�cognitive�abilities�have�been�tested�several�times�throughout�your� life.�In�fact,�each�year�millions�of�children�in�the�United�States�take�standardized�tests�of�intel- ligence�at�some�point�during�elementary�school,�middle�school,�or�high�school.9�Although�you� might�not�remember�taking�one�of�these,�you�probably�remember�taking�the�Scholastic�Assess- ment�Test�(SAT).�And�though�you�probably�thought�about�the�SAT�as�a�test�that�would�have�a� major�impact�only�on�where�you�could�and�could�not�go�to�college,�the�SAT�is�actually�a�test�of� cognitive�ability.
You�might�also�remember�that�the�SAT�included�a�variety�of�different�questions;�some�tested� your�ability�to�do�math�problems,�whereas�other�questions�assessed�your�ability�to�complete�sen- tences�and�make�analogies.�In�fact,�the�different�types�of�questions�reflect�specific�types�of�cog- nitive�ability�that�contribute�to�effectiveness�on�intellectual�tasks.�Table�10-1�lists�many�of�these� cognitive�ability�types,�along�with�their�specific�facets�and�some�jobs�in�which�they’re�thought�to� be�important.�The�definitions�and�information�in�this�table,�as�well�as�that�discussed�in�the�follow- ing�sections,�comes�from�research�that�produced�a�public�database�called�O*NET,�which�outlines� requirements�of�employees�in�different�types�of�jobs�and�occupations.10
VERBAL ABILITY Verbal ability�refers�to�various�capabilities�associated�with�understanding�and� expressing�oral�and�written�communication.�Oral comprehension�is�the�ability�to�understand�spo- ken�words�and�sentences,�and�written comprehension�is�the�ability�to�understand�written�words�and� sentences.�Although�these�two�aspects�of�verbal�ability�would�seem�highly�related—that�is,�people� who� have� high� oral� comprehension� would� tend� to� have� high� written� comprehension,� and� vice� versa—it’s�not�difficult�to�think�of�people�who�might�be�high�on�one�ability�but�low�on�the�other.� As�an�example,�it’s�been�reported�that�as�a�result�of�his�dyslexia,�actor�Tom�Cruise�has�poor�writ- ten�comprehension�and�can�learn�his�lines�only�after�listening�to�them�on�tape.11
10.2 What are the various types of cognitive ability?
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What� makes� some� people� more� or� less� effective� in� culturally� diverse� organizational� contexts?� According�to�some,�the�answer�to�this�question�is�cultural intelligence,�or�the�ability�to�discern�dif- ferences�among�people�that�are�due�to�culture�and�to�understand�what�these�differences�mean�in� terms�of�the�way�people�tend�to�think�and�behave�in�different�situations.�There�are�three�sources� of�cultural�intelligence�that�correspond�to�the�“head,”�“body,”�and�“heart.”�The�source�of�cultural� intelligence�that�corresponds�to�the�head�is�called�cognitive cultural intelligence.�This�concept�refers� to�the�ability�to�sense�differences�among�people�due�to�culture�and�to�use�this�knowledge�in�plan- ning�how�to�interact�with�others�in�anticipation�of�a�cross-cultural�encounter.�The�source�of�cul- tural�intelligence�that�corresponds�to�the�body�is�called�physical cultural intelligence,�which�refers� to�the�ability�to�adapt�one’s�behavior�when�a�cultural�encounter�requires�it.�Finally,�the�source�of� cultural� intelligence� that� corresponds� to� the� heart� is� called� emotional cultural intelligence.� This� concept�refers�to�the�level�of�effort�and�persistence�an�individual�exerts�when�trying�to�understand� and�adapt�to�new�cultures.
Understanding� cultural� intelligence� may� be� useful� because� it’s� an� ability� that� can� be� improved� through� training.� A� training� program� could� begin� with� an� assessment� to� identify� sources� of� cultural� intelligence� that� may� be� weak.� Consider,� for� example,� an� individual� who� is�very�knowledgeable�about�the�customs�and�norms�of�another�culture�and�is�very�willing�to� learn�more,�but�who�just�can’t�alter�her�body�language�and�eye�contact�so�that�it’s�appropriate� for�the�other�culture.�In�this�particular�case,�the�aim�of�the�training�would�be�to�improve�physi- cal� cultural� intelligence.� The� individual� might� be� asked� to� study� video� that� contrasts� correct� and�incorrect�body�language�and�eye�contact.�The�individual�might�also�be�asked�to�engage�in� role-playing�exercises�to�model�the�appropriate�behavior�and�receive�feedback�from�an�expert.� Finally,�the�individual�might�be�asked�to�take�acting�classes.�Although�an�organization�may�rely� on� improvements� in� employee� cultural� intelligence� that� result� from� exposure� to� new� cultures� and�cross-cultural�experiences,�the�costs�of�poor�performance�in�cross-cultural�contexts�can�be� significant�for�both�the�employee�and�the�organization,�and�therefore,�training�on�cultural�intel- ligence�may�have�great�utility.�
OB INTERNATIONALLY
Sources:� P.C.� Earley� and� S.� Ang,� Cultural Intelligence: Individual Interactions across Cultures� (Stanford,� CA:� Stanford� University� Press,� 2003);� P.C.� Earley� and� E.� Mosakowski,� “Cultural� Intelligence,”� Harvard Business Review� 82� (2004),�� pp.�139–46;�L.�Imai�and�M.J.�Gelfand,�“The�Culturally�Intelligent�Negotiator:�The�Impact�of�Cultural�Intelligence�(CQ)� on�Negotiation�Sequences�and�Outcomes,”�Organizational Behavior and Human Decision Processes�112�(2010),�pp.�83–98;� and�M.M.�Chao,�R.�Takeuchi,�and�J.L.�Farh.�“Enhancing�Cultural�Intelligence:�The�Roles�of�Implicit�Culture�Beliefs�and� Adjustment.”�Personnel Psychology�70�(2017),�pp.�257–92.�
Two� other� verbal� abilities� are� oral expression,� which� refers� to� the� ability� to� communicate� ideas� by� speaking,� and� written expression,� which� refers� to� the� ability� to� communicate� ideas� in� writing.�Again,�though�it�might�seem�that�these�abilities�should�be�highly�related,�this�is�not�nec- essarily�so.�You�may�have�taken�a�class�with�a�professor�who�had�authored�several�well-regarded� books� and� articles,� but� at� the� same� time,� had� a� very� difficult� time� expressing� concepts� and� theories�to�students.�Although�there�could�be�many�reasons�this�might�happen,�one�explanation� is�that�the�professor�had�high�ability�in�terms�of�written�expression�but�low�ability�in�terms�of� oral�expression.
Generally�speaking,�verbal�abilities�are�most�important�in�jobs�in�which�effectiveness�depends� on�understanding�and�communicating�ideas�and�information�to�others.�As�an�example,�the�effec- tiveness�of�business�executives�depends�on�their�ability�to�consider�information�from�reports�and� other�executives�and�staff,�as�well�as�their�ability�to�articulate�a�vision�and�strategy�that�promotes� employee� understanding.� As� another� example,� consider� how� important� the� verbal� abilities� of� a�
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TABLE 10-1 Types and Facets of Cognitive Ability
TYPE MORE SPECIFIC FACET JOBS WHERE RELEVANT
Verbal Oral and Written Comprehension: Understand- ing written and spoken words and sentences Oral and Written Expression: Communicating ideas by speaking or writing so that others can understand
Business executives; police, fire, and ambu- lance dispatchers; clinical psychologists
Quantitative Number Facility: Performing basic math opera- tions quickly and correctly Mathematical Reasoning: Selecting the right method or formula to solve a problem
Treasurers; financial manag- ers; mathematical techni- cians; statisticians
Reasoning Problem Sensitivity: Understanding when there is a problem or when something may go wrong Deductive Reasoning: Applying general rules to specific problems Inductive Reasoning: Combining specific infor- mation to form general conclusions Originality: Developing new ideas
Anesthesiologists; surgeons; business executives; fire inspectors; judges; police detectives; forensic scien- tists; cartoonists; designers
Spatial Spatial Orientation: Knowing where one is rela- tive to objects in the environment Visualization: Imagining how something will look after it has been rearranged
Pilots; drivers; boat captains; photographers; set design- ers; sketch artists
Perceptual Speed and Flexibility of Closure: Making sense of information and finding patterns Perceptual Speed: Comparing information or objects with remembered information or objects
Musicians; firefighters; police officers; pilots; mail clerks; inspectors
Sources:�Adapted�from�E.A.�Fleishman,�D.P.�Costanza,�and�J.�Marshall-Mies,�“Abilities,”�in�An Occupational Information System for the 21st�Century: The Development of O*NET,�ed.�N.G.�Peterson,�M.D.�Mumford,�W.C.�Borman,�P.R.�Jeanneret,� and� E.A.� Fleishman� (Washington,� DC:� American� Psychological� Association,� 1999),� pp.� 175–95;� and� O*NET� Website,� The O*NET Content Model: Detailed Outline With Descriptions,� http://www.onetcenter.org/content.html/1.a?d=1#cm_1.a� (accessed�May�20,�2009).
Tom Cruise has dyslexia, and he struggles with written comprehension. He learns the lines for his movies by listening to them on tape.
©Universal Pictures/Photofest
9-1-1� dispatcher� might� be� if� a� loved�one�suddenly�became�ill� and�stopped�breathing.
QUANTITATIVE ABILITY � Quantitative ability�refers�to�two� types�of�mathematical�capabili- ties.�The�first�is�number facility,� which� is� the� capability� to� do� simple� math� operations� (add- ing,� subtracting,� multiplying,� and� dividing).� The� second� is� mathematical reasoning,� which� refers� to� the� ability� to� choose� and� apply� formulas� to� solve� problems�that�involve�numbers.� If� you� think� back� to� the� SAT,�
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you�can�probably�remember�problems�such�as�the�following:�“There�were�two�trains�800�miles�apart,� and�they�were�traveling�toward�each�other�on�the�same�track.�The�first�train�began�traveling�at�noon� and�averaged�45�miles�per�hour.�The�second�train�started�off�two�hours�later.�What�speed�did�the�sec- ond�train�average�if�the�two�trains�smashed�into�each�other�at�10:00�p.m.�of�the�same�day?”
Although�number�facility�may�be�necessary�to�solve�this�problem,�mathematical�reasoning�is� crucial�because�the�test�taker�needs�to�know�which�formulas�to�apply.�Although�most�of�us�wish� that�problems�like�this�would�be�limited�to�test-taking�contexts�(especially�this�particular�problem),� there�are�countless�situations�in�which�quantitative�abilities�are�important.�For�example,�consider� the� importance� of� quantitative� ability� in� jobs� involving� statistics,� accounting,� and� engineering.� Quantitative� abilities� may� be� important� in� less� complex,� lower-level� jobs� as� well.� Have� you� ever� been�at�a�fast-food�restaurant�or�convenience�store�when�the�cash�register�wasn’t�working�and�the� clerk�couldn’t�manage�to�count�out�change�correctly�or�quickly?�If�you�have,�you�witnessed�a�very� good�example�of�low�quantitative�ability,�and�perhaps�some�very�annoyed�customers�as�well.�As� another�example�of�a�job�that�requires�high�quantitative�ability,�see�our�OB on Screen�feature.
REASONING ABILITY Reasoning ability�is�actually�a�diverse�set�of�abilities�associated�with�sens- ing�and�solving�problems�using�insight,�rules,�and�logic.�The�first�reasoning�ability,�problem sensi- tivity,�is�the�ability�to�sense�that�there’s�a�problem�right�now�or�likely�to�be�one�in�the�near�future.� In�essence,�problem�sensitivity�is�the�ability�to�sense�that�things�just�aren’t�right,�or�are�not�track- ing�correctly�or�as�expected.�Anesthesiology�is�a�great�example�of�a�job�for�which�problem�sensitiv- ity�is�crucial.�Before�surgeries,�anesthesiologists�give�drugs�to�patients�so�that�surgical�procedures� can�take�place�without�the�patients�experiencing�pain.�However,�during�the�surgery,�patients�can� have�negative�reactions�to�the�drugs�that�might�result�in�the�loss�of�life.�So�the�ability�of�the�anes- thesiologist�to�sense�when�something�is�wrong�even�before�the�problem�is�fully�apparent�can�be�a� life-or-death�matter.
A�second�type�of�reasoning�ability�is�called�deductive reasoning.�This�ability�refers�to�the�use� of� general� rules� or� hypotheses� as� a� starting� point� to� solve� a� problem.� Individuals� who� possess� high�deductive�reasoning�ability�are�able�reach�effective�conclusions�by�comparing�how�available� information�fits�with�an�existing�rule�or�hypothesis.�When�information�is�consistent�with�the�rule� or�hypothesis,�the�solution�follows�accordingly.�When�information�is�not�consistent�with�a�rule�or� hypothesis,�then�the�information�is�considered�in�light�of�a�different�rule�or�hypothesis,�and�the� process�begins�anew.�Judges�need�to�have�strong�deductive�reasoning�abilities�because�their�job� involves�the�consideration�of�facts�in�light�of�existing�rules�of�law�to�reach�verdicts.�
In�contrast,�inductive reasoning�refers�to�the�ability�to�consider�several�specific�pieces�of�infor- mation�to�generate�a�hypothesis�and�a�plausible�solution.�Individuals�with�high�inductive�reasoning� ability�are�able�to�produce�solutions�to�problems�by�synthesizing�available�data�and�information.� Inductive�reasoning�is�required�of�police�detectives�and�crime�scene�investigators�who�must�con- sider�things�like�tire�tracks,�blood�spatter,�fibers,�and�fingerprints�to�reach�conclusions�about�likely� perpetrators�of�crimes�and�causes�of�death.
Finally,�originality�refers�to�the�ability�to�develop�clever�and�novel�ways�to�solve�problems.�Larry� Page�and�Sergey�Brin,�the�two�founders�of�Google,�provide�good�examples�of�originality.�They�not� only�developed�the�Internet�search�software�that�gave�Google�a�competitive�advantage,�and�cre- ated� the� first� completely� new� advertising� medium� in� nearly� half� a� century,� but� they� also� refuse� to�follow�conventional�wisdom�when�it�comes�to�managerial�practices�and�business�decisions.12� Clearly,�originality�is�important�in�a�wide�variety�of�occupations,�but�in�some�jobs,�originality�is� the�most�critical�ability.�For�example,�a�cartoonist,�designer,�writer,�or�advertising�executive�with- out�originality�would�find�it�difficult�to�be�successful.
SPATIAL ABILITY There� are� two� main� types� of� spatial ability,� or� capabilities� associated� with� visual�and�mental�representation�and�manipulation�of�objects�in�space.�The�first�is�called�spatial orientation,�which�refers�to�a�good�understanding�of�where�one�is�relative�to�other�things�in�the� environment.�A�tourist�with�high�spatial�organization�would�have�no�trouble�finding�her�way�back� to�her�hotel�on�foot�after�a�long�day�of�sightseeing,�even�without�a�map�or�help�from�anyone�on�the� street.�The�second�spatial�ability�is�called�visualization,�which�is�the�ability�to�imagine�how�sepa- rate�things�will�look�if�they�were�put�together�in�a�particular�way.�If�you’re�good�at�imagining�how� a�room�would�look�if�it�were�rearranged,�or�if�your�friends�are�impressed�that�you�can�buy�things� that�go�together�well,�chances�are�that�you�would�score�high�on�visualization.
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OB ON SCREEN HIDDEN FIGURES
What I’m asking you to do, what I’m asking everyone in that room, all my geniuses, is to look beyond the numbers, to look around them, through them, to ask the questions we don’t even know how to ask, at math that doesn’t yet exist, because without it, we’re not going anywhere.
With�those�words,�head�of�NASA’s�Space�Task�Group,�Al�Harrison�(Kevin�Costner)�tries�to�con- vey�a�sense�of�urgency�to�his�group�of�mathematicians,�in�the�movie�Hidden Figures�(Dir.�Theodore�� Melfi,�Levantine�Films,�2017).�In�1961�the�United�States�was�in�a�race�with�the�Soviet�Union�to� establish�supremacy�in�space.�The�Soviets�had�beaten�the�United�States�in�getting�the�first�satel- lite�and�human�to�orbit�the�earth,�and�in�order�to�avoid�falling�further�behind,�Harrison�needed� his�mathematicians�to�figure�out�how�to�calculate�the�trajectory�of�a�spacecraft�that’s�subject�to� changing�forces�of�gravity.�Electronic�computers�were�in�their�infancy,�so�NASA�relied�upon�on� a� team� of� math� gurus� to� apply� mathematical� theories� and� formulas,� and� to� perform� large� num- bers�of�calculations�by�hand.�Fortunately,�Katherine�Johnson�(Taraji�Henson),�an�extraordinarily� gifted�NASA�employee,�had�just�joined�Harrison’s�group�of�human�“computers.”
Throughout� the� film,� there� are� examples� of� Katherine’s� quantitative� abilities.� In� one� scene,� for� example,�Katherine�is�invited�by�Harrison�to�a�meeting�of�high-level�NASA�employees�who�were�try- ing�to�solve�problems�related�to�the�launch�and�recovery�of�Friendship�7.�Astronaut�John�Glenn,�who� was�slated�to�orbit�the�earth�in�this�spacecraft,�was�particularly�impressed�when�Katherine�stepped�up� to�a�blackboard�with�a�piece�of�chalk�and�worked�through�a�long�series�of�equations�to�produce�the� latitude�and�longitude�where�he�would�land.�Glenn’s�trust�in�Katherine’s�quantitative�abilities�was�evi- dent�later�in�the�film�when�he�refused�to�launch�in�Friendship�7�until�she�double�checked�calculations� performed�by�others�and�a�new�IBM�computer.�What�makes�this�true�story�even�more�remarkable�is� that�Katherine�Johnson�is�an�African�American�who�worked�in�an�era�of�racial�segregation�and�male� dominance�in�the�sciences�and�mathematics.�Her�accomplishments�at�NASA�not�only�speak�to�her� remarkable�quantitative�abilities,�but�also�her�amazing�determination�and�perseverance.
©Moviestore collection Ltd/Alamy
PERCEPTUAL ABILITY Perceptual ability� refers� to� being� able� to� perceive,� understand,� and� recall� patterns�of�information.�More�specifically,�speed and flexibility of closure�refers�to�being�able�to�pick�out� a�pattern�of�information�quickly�in�the�presence�of�distracting�information,�even�without�all�the�infor- mation�present.�People�who�work�for�the�Central�Intelligence�Agency�likely�need�speed�and�flexibility� of�closure�to�break�secret�codes.�Related�to�this�ability�is�perceptual speed,�which�refers�to�being�able�to�
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examine�and�compare�numbers,�letters,� and�objects�quickly.�If�you�can�go�into� the� produce� section� of� a� supermarket� and� choose� the� best� tomatoes� faster� than� the� people� around� you,� chances� are� you� have� high� perceptual� speed.� Effectiveness� in� jobs� in� which� people� need� to� proofread� documents,� sort� things,�or�categorize�objects�depends�a� lot�on�perceptual�speed.
GENERAL COGNITIVE ABILITY � If� you’ve� read� the� preceding� sections� carefully,�you�probably�thought�about� where�you�stand�on�the�different�types� of�cognitive�abilities.�In�doing�so,�you� may�have�also�reached�the�conclusion� that� you’re� higher� on� some� of� these� abilities� and� lower� on� others.� Maybe� you�think�of�yourself�as�being�smart�in�
verbal�abilities�but�not�as�smart�in�quantitative�abilities.�In�fact,�most�people�score�more�similarly� across�their�cognitive�abilities�than�they�realize.�People�who�are�higher�than�average�on�verbal�abili- ties�also�tend�to�be�higher�than�average�on�reasoning,�quantitative,�spatial,�and�perceptual�abilities,� and� people� who� are� lower� than� average� on� verbal� abilities� tend� to� be� lower� than� average� on� the� other�abilities.�Although�this�consistency�might�not�apply�to�everyone,�it�applies�often�enough�that� researchers�have�been�trying�to�understand�why�this�occurs�for�well�over�100�years.13
The�most�popular�explanation�for�the�consistency�in�the�levels�of�different�cognitive�abilities� within�people�is�that�there’s�a�general cognitive ability—sometimes�called�the�g-factor�or�simply�g— that� underlies� or� causes� all� of� the� more� specific� cognitive� abilities� we’ve� discussed� so� far.14� To� understand�what�this�means�more�clearly,�consider�the�diagram�in�Figure�10-1�that�depicts�general� cognitive�ability�as�the�area�in�common�across�the�more�specific�cognitive�abilities�that�we’ve�dis- cussed.�This�overlap�exists�because�each�of�the�specific�abilities�depends�somewhat�on�the�brain’s� ability�to�process�information�effectively.�So,�because�some�brains�are�capable�of�processing�infor- mation�more�effectively�than�others,�some�people�tend�to�score�higher�across�the�specific�abilities,� whereas�others�tend�to�score�lower.
You’re� probably� familiar� with� the� intelligence� quotient,� which� is� known� as� IQ.� Well,� IQ� was� something� originally� used� in� educational� contexts� to� diagnose� learning� disabilities,� and� accord- ingly,�tests�to�measure�IQ�were�developed�using�questions�with�which�students�with�learning�dis- abilities�might�struggle.�IQ�tests�were�then�scaled�as�a�percentage�that�indicated�a�person’s�mental� age�relative�to�his�or�her�chronological�age.�IQ�scores�lower�than�100�were�interpreted�as�indicating� a�potential�learning�or�educational�deficiency,�whereas�scores�higher�than�100�were�interpreted�as� indicating�that�someone�was�particularly�bright�for�his�or�her�age.�However,�it�turns�out�that�IQ� tests�and�tests�of�general�cognitive�ability�are�often�quite�similar�in�terms�of�the�types�of�questions� included,�and�more�importantly,�scores�on�the�two�types�of�tests�say�pretty�much�the�same�thing� about�the�people�who�take�them.15�
Does� a� high� IQ� boost� effectiveness� of� people� in� work� contexts?� We’ll� discuss� this� matter� in� some�detail�later,�but�it’s�worth�pointing�out�here�that�IQ�is�associated�with�outcomes�that�are�very� relevant� to� you,� your� employer,� and� perhaps� society� in� general.16� For� example,� researchers� have� shown�that�individuals�with�higher�IQ�tend�to�be�healthier�and�economically�better�off,�and�as�a� consequence�of�these�two�factors,�they�tend�to�feel�happier�and�more�satisfied�with�their�lives.17� They�also�tend�to�have�fewer�accidents�that�cause�injury,�less�cardiovascular�disease,�and�not�sur- prisingly�given�the�first�two�associations,�they�also�tend�to�live�longer.18�Although�the�explanation� for�these�relationships�is�not�altogether�clear,�it’s�likely�that�people�with�higher�IQ�become�more� knowledgeable�about�the�prevention�and�management�of�injury�and�disease,�and�in�addition,�may� have� advantages� with� respect� to� the� availability� of� health� care� and� knowledge� that� helps� them� adapt�to�challenging�circumstances.19
Pilots flying in conditions where there’s poor visibility
have to rely on various instruments and their spa- tial ability to visualize their absolute position and, just as important, their position
relative to other objects, some of which are also
moving.
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E M OT I O N A L A B I L I T Y Consider�the�case�of�Dick�Snyder,�who�headed�the�publishing�firm�Simon�&�Schuster.�He�seemed� unable�to�control�or�perceive�his�emotions,�and�he�regularly�blew�up�at�and�humiliated�his�subordi- nates.20�To�make�matters�worse,�he�didn’t�understand�that�his�lack�of�emotional�control�and�under- standing�was�having�a�negative�impact�on�his�team,�and�he�eventually�was�fired,�despite�leading� his�company�to�higher�levels�of�earnings.�In�this�section�of�the�chapter,�we�describe�the�concept�of� emotional�ability—precisely�the�type�of�ability�that�Dick�Snyder�appears�to�lack.
So�how�is�emotional�ability�different�than�cognitive�ability?�Most�of�us�know�someone�who�is� very�smart�from�a�“cognitive�ability”�or�IQ�standpoint,�but�at�the�same�time,�the�person�just�can’t� manage�to�be�effective�in�real-world�situations�that�involve�other�people.�As�an�example,�you�may� have�played�Trivial Pursuit�with�a�group�of�friends�and�found�someone�at�the�table�who�could�not� only�answer�the�majority�of�the�questions�correctly�but�also�managed�to�say�odd�or�inappropriate� things�throughout�the�game.�You�may�also�know�someone�who�doesn’t�seem�very�“book�smart”� but�always�seems�able�to�get�things�done�and�says�the�right�things�at�the�right�time.�In�the�context� of�the�same�Trivial Pursuit�game,�such�a�person�might�have�answered�most�of�the�game�questions� incorrectly�but,�sensing�how�uncomfortable�and�angry�people�were�becoming�with�the�annoying� player,�made�jokes�to�lighten�things�up.
In� fact,� for� several� decades� now,� researchers� have� been� investigating� whether� there’s� a� type� of� ability� that� influences� the� degree� to� which� people� tend� to� be� effective� in� social� situations,� regardless�of�their�level�of�cognitive�abilities.21�Although�there�has�been�some�debate�among�these� researchers,22�many�believe�now�that�there’s�a�human�ability�that�affects�social�functioning,�called� emotional intelligence.23�Emotional�intelligence�is�defined�in�terms�of�a�set�of�distinct�but�related� abilities,�which�we�describe�next.24�
SELF-AWARENESS The� first� type� of� emotional� intelligence� is� self-awareness,� or� the� appraisal� and�expression�of�emotions�in�oneself.�This�facet�refers�to�the�ability�of�an�individual�to�under- stand�the�types�of�emotions�he�or�she�is�experiencing,�the�willingness�to�acknowledge�them,�and� the�capability�to�express�them�naturally.25�As�an�example,�someone�who�is�low�in�this�aspect�of� emotional�intelligence�might�not�admit�to�himself�or�show�anyone�else�that�he’s�feeling�somewhat� anxious�during�the�first�few�days�of�a�new�job.�These�types�of�emotions�are�perfectly�natural�in�a� new�job�context,�and�ignoring�them�might�increase�the�stress�of�the�situation.�Ignoring�those�emo- tions�might�also�send�the�wrong�signal�to�new�colleagues,�who�might�wonder,�“Why�isn’t�the�new� hire�more�excited�about�working�for�us?”
FIGURE 10-1 The “g-factor”
Source:� Adapted� from� J.J.� Johnson� and� J.B.� Cullen,� “Trust� in� Cross-Cultural� Relationships,”� in� Blackwell Handbook of Cross-Cultural Management,�ed.�M.J.�Gannon�and�K.L.�Newman�(Malden,�MA:�Blackwell,�2002),�pp.�335–60.
Verbal
Spatial
Perceptual Reasoning
Quant- itative
g
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OTHER AWARENESS The� second� facet� of� emotional� intelligence� is� called� other awareness,� or� the�appraisal�and�recognition�of�emotion�in�others.26�As�the�name�of�this�facet�implies,�it�refers�to� a�person’s�ability�to�recognize�and�understand�the�emotions�that�other�people�are�feeling.�People� who�are�high�in�this�aspect�of�emotional�intelligence�are�not�only�sensitive�to�the�feelings�of�others� but�also�can�anticipate�the�emotions�that�people�will�experience�in�different�situations.�In�contrast,� people�who�are�low�in�this�aspect�of�emotional�intelligence�do�not�effectively�sense�the�emotions� that�others�are�experiencing,�and�if�the�emotions�are�negative,�this�inability�could�result�in�the�per- son�doing�something�that�worsens�the�situation.�As�an�example,�have�you�ever�had�a�professor�who� couldn’t�sense�that�students�in�class�didn’t�understand�the�material�being�presented�in�a�lecture?� When�that�professor�continued�to�press�on�with�the�slides,�oblivious�to�the�fact�that�the�students� were�becoming�even�more�confused,�it�was�poor�other�awareness�in�action.�As�another�example,� an�accountant�at�Chemical�Bank�in�New�York�recalls�that�his�boss�asked�him�to�refine�his�skills�in� this�aspect�of�emotional�intelligence.27�Although�he�was�a�good�accountant,�he�needed�help�show- ing�interest�in�other�people’s�emotions�so�that�discussions�with�clients�were�less�contentious.�As�a� final�example,�the�CEO�of�Forte�Hotels,�a�chain�of�luxury�hotels�in�Europe,�prizes�employees�who� have�the�ability�to�understand�the�customer’s�emotions�so�they�can�react�accordingly.�“I�know�the� most�amazing�waitress,”�he�says.�“She�can�look�at�a�counterful�of�people�eating�breakfast�and�tell� immediately�who�wants�chatting�up,�who�wants�to�be�left�alone.�Uncanny.�Just�uncanny.”28
EMOTION REGULATION The�third�facet�of�emotional�intelligence,�emotion regulation,�refers�to� being� able� to� recover� quickly� from� emotional� experiences.29� As� an� example� of� this� aspect� of� emo- tional�intelligence,�consider�the�possible�responses�of�someone�on�his�way�to�work,�who�is�driving� just�below�the�speed�limit�in�his�brand�new�Toyota�Prius�who�gets�cut�off�by�an�aggressive�driver�who,� as�she�passes�by,�throws�a�half-filled�plastic�bottle�of�Mountain�Dew�out�the�window�and�shouts�an� obscenity.�If�the�Prius�driver�can�regulate�his�emotions�effectively,�he�recovers�quickly�from�the�initial� anger�and�shock�of�the�encounter.�He�would�be�able�to�get�back�to�whatever�he�was�listening�to�on� the�radio,�and�by�the�time�he�got�to�work,�the�incident�would�likely�be�all�but�forgotten.�However,� if� this� person� were� not� able� to� regulate� his� emotions� effectively,� he� might� lose� his� temper,� tailgate� the�aggressive�driver,�and�then�ram�his�new�Prius�into�her�vehicle�at�the�next�stoplight.�We�hope�it’s� obvious�to�you�that�the�former�response�is�much�more�appropriate�than�the�latter,�which�could�prove� quite�costly�to�the�individual.�Although�this�example�highlights�the�importance�of�regulating�negative� emotions,�we�should�also�point�out�that�this�aspect�of�emotional�intelligence�also�applies�to�positive� emotions.�Consider,�for�example,�the�response�of�someone�who�is�told�that�he’s�about�to�receive�a� significant�pay�raise.�If�this�person�is�unable�to�regulate�his�own�emotions�effectively,�he�might�feel� joyous�and�giddy�the�rest�of�the�day,�flashing�jazz�hands�to�his�coworkers.�As�a�consequence,�he’s�not� able�to�accomplish�any�more�work�that�day,�never�mind�alienating�everyone�around�him.
USE OF EMOTIONS The�fourth�aspect�of�emotional�intelligence�is�the�use of emotions.30�This� capability�reflects�the�degree�to�which�people�can�harness�emotions�and�employ�them�to�improve� their�chances�of�being�successful�in�whatever�they’re�seeking�to�do.�For�example,�researchers�have� shown�that�when�employees�who�face�novel�circumstances�harness�their�positive�emotions,�they�
can�produce�solutions�that�are�more� creative.31�To�understand�this�facet�of� emotional� intelligence� more� clearly,� consider�a�writer�who’s�struggling�to� finish� a� book� but� is� under� a� serious� time�crunch�because�of�the�contract� with�the�publisher.�If�the�writer�were� high�in�this�aspect�of�emotional�intel- ligence,�she�would�likely�psych�herself� up� for� the� challenge� and� encourage� herself� to� work� hard� through� any� bouts� of� writer’s� block.� In� contrast,� if�the�writer�were�low�in�this�aspect� of�emotional�intelligence,�she�might� begin�to�doubt�her�competence�as�a�
10.3 What are the various types of emotional ability?
“Other awareness” is one aspect of emotional intel- ligence that allows us to
empathize with others and understand their feelings.
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writer� and� think� about� different� things� she� could� do� with� her� life.� Because� these� behaviors� will� slow�progress�on�the�book�even�further,�the�number�and�intensity�of�self-defeating�thoughts�might� increase,�and�ultimately,�the�writer�might�withdraw�from�the�task�entirely.
APPLYING EMOTIONAL INTELLIGENCE Although�you�may�appreciate�how�emotional�intel- ligence�can�be�relevant�to�effectiveness�in�a�variety�of�interpersonal�situations,�you�might�be�won- dering�whether�knowledge�of�emotional�intelligence�can�be�useful�to�managers�in�their�quest�to� make�their�organizations�more�effective.�It�turns�out�there’s�growing�evidence�that�the�answer�to� this�question�is�“yes,”�albeit�with�a�few�caveats.32
As� one� example� of� the� usefulness� of� emotional� intelligence,� the� U.S.� Air� Force� found� that� recruiters�who�were�high�in�some�aspects�of�emotional�intelligence�were�three�times�more�likely� to� meet� recruiting� quotas� than� recruiters� who� scored� lower� in� the� same� aspects� of� emotional� intelligence.33�Recruiters�with�high�emotional�intelligence�were�more�effective�because�they�pro- jected�positive�emotions�and�could�quickly�sense�and�appropriately�respond�to�recruits’�concerns.� Because� these� capabilities� made� recruiting� easier,� there� was� less� pressure� to� meet� performance� quotas,�which�translated�into�fewer�hours�at�the�office,�higher�satisfaction,�and�ultimately�higher� retention.�In�fact,�after�the�Air�Force�began�requiring�new�recruiters�to�pass�an�emotional�intel- ligence�test,�turnover�among�new�recruiters�dropped�from�25�percent�to�2�percent.�Given�that,�on� average,�it�costs�about�$30,000�to�train�a�new�recruiter,�this�lower�turnover�translated�into�about� $2.75�million�in�savings�a�year.
As� a� second� example� of� the� usefulness� of� emotional� intelligence,� Paris–based� L’Oréal,� the� world’s�largest�manufacturer�of�cosmetics�and�beauty�products,�was�interested�in�the�use�of�emo- tional� intelligence� in� the� hiring� of� sales� agents� who� could� perform� their� jobs� more� effectively.34� How�well�did�this�idea�work�out�for�the�company?�The�sales�agents�who�were�hired�based�mainly� on�their�emotional�intelligence�scores�had�sales�that�were�$91,370�greater�than�agents�who�were� hired�on�the�basis�of�other�information.�The�company�also�found�that�the�agents�who�were�selected� on�the�basis�of�their�emotional�intelligence�scores�were�63�percent�less�likely�to�quit�during�their� first�year�as�compared�to�the�other�agents.�Sales�agents�with�high�emotional�intelligence�were�able� to�better�understand�client�needs,�and�because�this�results�in�higher�performance�and�less�frustra- tion,�these�agents�tend�to�stay�with�the�company�longer.
The�two�previous�examples�illustrate�the�usefulness�of�staffing�and�training�practices�based�on� emotional� intelligence.� In� fact,� there’s� growing� evidence� from� researchers� that� emotional� intel- ligence�may�have�an�important�impact�on�employee�job�performance�across�a�wide�variety�of�set- tings.35�There’s�also�evidence�that�emotional�intelligence�may�have�a�significantly�stronger�impact� on� the� job� performance� of� some� employees� more� than� others.� One� recent� study,� for� example,� found�that�emotional�intelligence�is�a�more�important�determinant�of�job�performance�for�employ- ees�with�lower�levels�of�cognitive�ability.36�The�explanation�for�this�relationship�is�easy�to�under- stand� if� you� consider� that,� in� many� circumstances,� high� emotional� intelligence� can� compensate� somewhat�for�low�cognitive�intelligence.�In�other�words,�exceptional�“people�smarts”�can,�to�some� extent,�make�up�for�deficiencies�in�“book�smarts.”�See�our�OB at the Bookstore�feature�for�another� perspective�on�how�and�why�emotional�intelligence�may�be�crucial�for�job�performance.���
Although�the�picture�of�emotional�intelligence�we’ve�painted�so�far�is�very�upbeat,�it’s�impor- tant�to�mention�that�there�may�be�a�“dark�side”�to�this�ability.�Specifically,�there’s�some�evidence� that�emotional�intelligence�is�correlated�positively�with�behaviors�at�work�that�are�more�counter- productive� in� nature.37� That� is,� certain� individuals� with� higher� levels� of� emotional� intelligence� may�tend�to�engage�in�more�counterproductive�behaviors�such�as�gossiping,�harassment,�and�even� theft.�This�might�come�as�some�surprise�to�you�given�all�the�positives�of�emotional�intelligence�we� mentioned�in�the�previous�paragraphs.�However,�consider�that�the�ability�to�understand�and�influ- ence�others’�emotions�can�be�used�to�achieve�personal�goals�that�are�not�necessarily�compatible� with�the�goals�and�values�of�the�organization�or�society.38�In�essence,�emotional�intelligence�may� provide�individuals�with�a�gift�of�being�able�to�influence�how�other�people�feel,�and�unfortunately,� that�gift�can�be�abused�if�the�individual�is�inclined�toward�questionable�ends.39�
ASSESSING EMOTIONAL INTELLIGENCE As� we� discussed� previously,� cognitive� abilities� are� typically� assessed� using� measures� with� questions� such� as� those� included� in� SAT� or� IQ� tests.� So� how� is� emotional� intelligence� assessed?� One� type� of� emotional� intelligence� assessment� is� similar�
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OB AT THE BOOKSTORE HUMILITY IS THE NEW SMART by Edward D. Hess & Katherine Ludwig (Oakland, CA: Berrett-Koehler, 2017).
Society is on the leading edge of a technology tsunami. Advances in artificial intelligence, the Inter- net of Things, virtual reality, robotics, nanotechnology, deep learning, mapping the human brain, and biomedical, genetic, and cyborg engineering will revolutionize how most of us live and work.
With� those� words,� authors� Hess� and� Ludwig� provide� the� back- drop� for� their� assertion� that� in� order� to� maintain� our� relevance� in� light� of� machines� that� can� think� and� learn,� humans� will� have� to� fundamentally� adapt� how� we� think� and� learn.� Machines� can� pro- cess,� remember,� pattern� match,� explain� variance� and� synthesize� data�faster�than�anyone�who�ever�lived,�and�as�machines�continue�to� improve�in�their�capabilities,�there�will�be�fewer�and�fewer�jobs�that� require�humans.�What�will�be�left�for�us�to�do�will�require�high-level� critical� thinking,� creativity,� and� effectively� engaging� with� others.� Unfortunately,� the� authors� claim� that� these� are� precisely� the� abili- ties�that�run�counter�to�human�nature.�That�is,�we�process�informa- tion�quickly�using�mental�shortcuts,�we’re�emotional�and�defensive� about�our�ideas,�and�we’re�self-centered.�So�how�are�we�to�develop� the�abilities�we�need�to�be�successful�in�the�“smart�machine�age?”
According� to� Hess� and� Ludwig,� we� first� need� to� rethink� what� smart�means.�Current�definitions�refer�to�how�much�one�knows�and�can�apply�to�solve�problems� relative� to� others.� Smart� in� the� smart� machine� age,� or� “NewSmart,”� is� more� about� quality� than� quantity.� It� involves� quieting� one’s� ego,� managing� one’s� emotions,� thinking� and� listening� reflec- tively,� and� connecting� emotionally� with� others.� The� authors� suggest� that� the� key� to� unlocking� NewSmart�is�to�develop�humility,�an�orientation�that�is�open-minded�about�possibilities,�accurate� in�self-perceptions�and�acceptance�of�one’s�strengths�and�weaknesses,�and�an�appreciation�for�the� value�of�others.�When�we�possess�this�type�of�humility,�we�can�think�more�creativity,�admit�when� we�might�not�have�the�right�answer,�learn�iteratively,�and�build�relationships�that�allow�for�true� collaboration�to�occur.�Although�some�of�the�arguments�in�the�book�may�seem�a�little�abstract,�the� underlying�problem�is�nevertheless�compelling.�Moreover,�there�are�tools�and�assessments�in�the� book�that�explain�how�the�ideas�can�be�put�into�practice.�
©Roberts Publishing Services
to�a�SAT-style�test,�because�questions�are�scored�as�correct�or�incorrect.�Test�takers�are�asked�to� describe�the�emotions�of�people�depicted�in�pictures,�predict�emotional�responses�to�different�situa- tions,�and�identify�appropriate�and�inappropriate�emotional�responses.�After�a�person�takes�the�test,� it�gets�sent�back�to�the�test�publisher�to�be�scored.�Another�type�of�assessment�asks�people�about� behaviors�and�preferences�that�are�thought�to�reflect�emotional�intelligence.�One�of�the�first�tests� of� this� type,� the� Emotional� Quotient� Inventory� (EQ-i),40� includes� 133� such� questions.� Although� the�EQ-i�has�been�used�by�many�organizations�in�an�attempt�to�improve�managerial�practices�and� organizational�effectiveness,�it�has�been�criticized�for�measuring�personality�traits�more�than�actual� abilities.41�More�recently,�a�group�of�researchers�published�a�very�short�and�easy-to-score�measure� specifically�designed�to�assess�each�of�the�four�facets�of�emotional�intelligence�described�in�this�sec- tion.42�Although�this�assessment�is�similar�in�format�to�the�EQ-i,�the�items�don’t�appear�to�overlap� as�much�with�items�that�measure�different�aspects�of�personality.�You�can�take�the�test�yourself�in� our�OB Assessments�feature�to�see�where�you�stand�in�terms�of�emotional�intelligence.
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OB ASSESSMENTS
SCORING AND INTERPRETATION: �•� Self-Awareness:�Sum�up�items�1–4.�_________ �•� Other�Awareness:�Sum�up�items�5–8.�_________ �•� Emotion�Use:�Sum�up�items�9–12.�_________ �•� Emotion�Regulation:�Sum�up�items�13–16.�_________
If�you�scored�19�or�above,�then�you�are�above�average�on�a�particular�dimension.�If�you�scored� 18�or�below,�then�you�are�below�average�on�a�particular�dimension.
Sources:�K.S.�Law,�C.S.�Wong,�and�L.J.�Song,�“The�Construct�and�Criterion�Validity�of�Emotional�Intelligence�and�Its� Potential�Utility�for�Management�Studies,”�Journal of Applied Psychology�89�(2004),�pp.�483–96;�and�C.S.�Wong�and�K.S.� Law,�“The�Effects�of�Leader�and�Follower�Emotional�Intelligence�on�Performance�and�Attitude,”�The Leadership Quarterly� 13�(2002),�pp.�243–74.
EMOTIONAL INTELLIGENCE How�high�is�your�emotional�intelligence?�This�assessment�will�tell�you�where�you�stand�on�the�four� facets� of� emotional� intelligence� discussed� in� this� chapter—self-awareness,� other� awareness,� emo- tion�regulation,�and�emotion�use.�Answer�each�question�using�the�response�scale�provided.�Then� follow� the� instructions� below� to� score� yourself.� (Instructors:� Assessments� on� job� ability� prefer- ences�and�tolerance�for�emotional�labor�can�be�found�in�the�PowerPoints�in�the�Connect�Library’s� Instructor�Resources�and�in�the�Connect�assignments�for�this�chapter.)
1 TOTALLY
DISAGREE
2 DISAGREE
3 SOMEWHAT DISAGREE
4 NEUTRAL
5 SOMEWHAT
AGREE
6 AGREE
7 TOTALLY AGREE
1. I have a good sense of why I have certain feelings most of the time.
2. I have a good understanding of my own emotions.
3. I really understand what I feel.
4. I always know whether or not I am happy.
5. I am a good observer of others’ emotions.
6. I always know my friends’ emotions from their behavior.
7. I am sensitive to the feelings and emotions of others.
8. I have a good understanding of the emotions of people around me.
9. I always set goals for myself and then try my best to achieve them.
10. I always tell myself I am a competent person.
11. I am a self-motivating person.
12. I would always encourage myself to try my best.
13. I am able to control my temper so that I can handle difficulties rationally.
14. I am quite capable of controlling my own emotions.
15. I can always calm down quickly when I am very angry.
16. I have good control over my own emotions.
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P H YS I CA L A B I L I T Y Physical� abilities� are� likely� very� familiar� to� you� because� many� of� you� took� physical� education� classes�early�in�your�school�career.�Maybe�you�were�evaluated�on�whether�you�could�climb�a�rope� to�the�ceiling�of�a�gymnasium,�run�around�a�track�several�times,�or�kick�a�ball�to�a�teammate�who� was�running�full�stride.�Or�maybe�you’ve�applied�for�a�job�and�had�to�take�a�test�that�assessed�your� ability�to�manipulate�and�assemble�small�mechanical�parts.�As�a�final�example,�and�the�one�likely� to�be�most�familiar,�you’ve�probably�been�subject�to�tests�that�measure�the�quality�of�your�vision� and�hearing.�Although�these�examples�may�not�seem�to�be�related,�each�refers�to�a�different�type� of�physical�ability.�In�this�section,�we�review�a�few�important�types�of�physical�abilities,�which�are� summarized�in�Table�10-2.�We�note�that�the�definitions�and�information�in�this�table�(and�in�the� following�sections)�come�from�O*NET,�which�as�we�mentioned�previously,�outlines�requirements� of�employees�in�different�types�of�jobs�and�occupations.43
STRENGTH Although�strength�generally�refers�to�the�degree�to�which�the�body�is�capable�of�exert- ing�force,�there�are�actually�several�different�types�of�strength�that�are�important,�depending�on�the� job.�Static strength�refers�to�the�ability�to�lift,�push,�or�pull�very�heavy�objects�using�the�hands,�arms,� legs,�shoulders,�or�back.�Static�strength�is�involved�in�jobs�in�which�people�need�to�lift�objects�like� boxes,�equipment,�machine�parts,�and�heavy�tools.�With�explosive strength,�people�exert�short�bursts� of�energy�to�move�the�body�or�an�object.�Employees�who�are�required�to�run,�jump,�or�throw�things�at� work�depend�on�their�explosive�strength�to�be�effective.�The�final�type�of�strength,�dynamic strength,� refers�to�the�ability�to�exert�force�for�a�prolonged�period�of�time�without�becoming�overly�fatigued� and�giving�out.�Dynamic�strength�is�involved�in�jobs�in�which�employees�have�to�climb�ropes�or�lad- ders�or�pull�themselves�up�onto�platforms.�Although�jobs�requiring�physical�strength�may�vary�as�to� which�category�is�important,�there�are�also�many�jobs�that�require�all�three�categories.�Firefighters,� for�example,�must�typically�pass�grueling�tests�of�strength�before�being�hired.�In�Dublin,�California,� one�part�of�the�firefighter�strength�test�involves�climbing�a�long�flight�of�stairs�under�time�constraints� without�touching�the�rails�while�wearing�a�50-pound�vest�and�carrying�another�25�pounds�of�equip- ment.�Another�part�of�the�test�involves�safely�moving�a�165-pound�dummy�out�of�harm’s�way.44
STAMINA Stamina�refers�to�the�ability�of�a�person’s�lungs�and�circulatory�system�to�work�effi- ciently�while�he�or�she�is�engaging�in�prolonged�physical�activity.�Stamina�may�be�important�in� jobs� that� require� running,� swimming,� and� climbing.� In� fact,� stamina� is� involved� whenever� the� nature�of�the�physical�activity�causes�the�heart�rate�to�climb�and�the�depth�and�rate�of�breathing� to�increase�for�prolonged�periods�of�time.�As�you�can�imagine,�the�firefighter�test�described�in�the� previous�paragraph�assesses�stamina�as�well�as�strength.
FLEXIBILITY AND COORDINATION Generally� speaking,� flexibility� refers� to� the� ability� to� bend,�stretch,�twist,�or�reach.�When�a�job�requires�extreme�ranges�of�motion—for�example,�when� people�need�to�work�in�a�cramped�compartment�or�an�awkward�position—the�type�of�flexibility� involved�is�called�extent flexibility.�If�you’ve�ever�watched�a�person�working�inside�the�trunk�of�a� car�installing�speakers,�you’ve�seen�extent�flexibility.�When�a�job�requires�repeated�and�somewhat� quick�bends,�stretches,�twists,�or�reaches,�the�type�of�flexibility�involved�is�called�dynamic flexibil- ity.�To�understand�what�dynamic�flexibility�involves,�picture�a�house�painter�on�a�ladder�trying�to� paint�some�trim�just�barely�within�reach.
In�addition�to�flexibility,�coordination,�or�the�quality�of�physical�movement,�may�be�important� in� some� jobs.� Gross body coordination� refers� to� the� ability� to� synchronize� the� movements� of� the� body,�arms,�and�legs�to�do�something�while�the�whole�body�is�in�motion.�In�contrast,�gross body equilibrium�involves�the�ability�to�maintain�the�balance�of�the�body�in�unstable�contexts�or�when� the�person�has�to�change�directions.�Jumping�rope�effectively�requires�gross�body�coordination;� walking�on�a�balance�beam�requires�gross�body�equilibrium.�Both�types�of�coordination�are�impor- tant�in�contexts�that�involve�quick�movements.�However,�gross�body�equilibrium�is�more�impor- tant�when�the�work�environment�is�artificially�elevated�and�inherently�unstable.
PSYCHOMOTOR ABILITIES There�are�several�different�examples�of�psychomotor abilities,�which� generally�refer�to�the�capacity�to�manipulate�and�control�objects.�Fine manipulative abilities�refer�to� the�ability�to�keep�the�arms�and�hands�steady�while�using�the�hands�to�do�precise�work,�generally�on�
10.4 What are the various types of physical ability?
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Sources:�Adapted�from�E.A.�Fleishman,�D.P.�Costanza,�and�J.�Marshall-Mies,�“Abilities,”�in�An Occupational Information System for the 21st�Century: The Development of O*NET,�ed.�N.G.�Peterson,�M.D.�Mumford,�W.C.�Borman,�P.R.�Jeanneret,� and� E.A.� Fleishman� (Washington,� DC:� American� Psychological� Association,� 1999),� pp.� 175–95;� and� O*NET� Website,� The O*NET Content Model: Detailed Outline with Descriptions,�http://www.onet�center.org/content.html/1.A?D=1#Cm_1.A� (accessed�May�20,�2009).
TABLE 10-2 Physical Abilities
TYPE MORE SPECIFIC FACET JOBS WHERE RELEVANT
Strength Static: Lifting, pushing, pulling heavy objects Explosive: Exerting a short burst of muscular force to move oneself or objects Dynamic: Exerting muscular force repeatedly or continuously
Structural iron and steel workers; tractor trailer and heavy truck drivers; farm workers; firefighters
Stamina Exerting oneself over a period of time without circulatory system giving out
Athletes; dancers; commercial divers; firefighters
Flexibility and Coordination
Extent Flexibility: Degree of bending, stretching, twisting of body, arms, legs Dynamic Flexibility: Speed of bending, stretching, twisting of body, arms, legs Gross Body Coordination: Coordinating movement of body, arms, and legs in activities that involve all three together Gross Body Equilibrium: Ability to regain balance in contexts where balance is upset
Athletes; dancers; riggers; industrial machinery mechanics; choreographers; commercial divers; structural iron and steel workers
Psychomotor Fine Manipulative Abilities: Keeping hand and arm steady while grasping, manipulat- ing, and assembling small objects Control Movement Abilities: Making quick, precise adjustments to a machine while operating it Response Orientation: Quickly choosing among appropriate alternative movements Response Time: Quickly responding to signals with body movements
Fabric menders; potters; timing device assemblers; jewelers; construction drillers; agricultural equipment operators; photographers; highway patrol pilots; athletes
Sensory Near and Far Vision: Seeing details of an object up close or at a distance Night Vision: Seeing well in low light Visual Color Discrimination: Detecting dif- ferences in colors and shades Depth Perception: Judging relative distances Hearing Sensitivity: Hearing differences in sounds that vary in terms of pitch and loudness Auditory Attention: Focusing on a source of sound in the presence of other sources Speech Recognition: Identifying and under- standing the speech of others
Electronic testers and inspectors; highway patrol pilots; tractor trailer, truck, and bus drivers; airline pilots; photographers; musicians and composers; industrial machine mechanics; speech pathologists
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small�or�delicate�objects�such�as�arteries,�nerves,�gems,�and�watches.�Control movement abilities�are� important�in�tasks�for�which�people�have�to�make�different�precise�adjustments,�using�machinery�to� complete�the�work�effectively.�Anyone�who�drills�things�for�a�living,�whether�it�be�wood,�concrete,�or� teeth,�needs�this�type�of�ability.�The�ability�to�choose�the�right�action�quickly�in�response�to�several� different�signals�is�called�response orientation.�It�shouldn’t�be�too�difficult�to�imagine�the�importance� of�response�orientation�for�an�airline�pilot�who�responds�to�the�flashing�lights,�buzzers,�and�verbal� information�triggered�during�an�in-flight�emergency.�The�final�psychomotor�ability�we�describe�is� called�response time.�This�ability�reflects�how�quickly�an�individual�responds�to�signaling�informa- tion�after�it�occurs.�Returning�to�the�previous�example,�most�of�us�would�feel�more�secure�if�our� airline�pilot�had�both�a�fast�response�orientation�and�a�quick�response�time.�After�all,�making�the� right�decision�may�not�be�useful�in�this�context�if�the�decision�is�made�too�late!
SENSORY ABILITIES Sensory abilities�refers�to�capabilities�associated�with�vision�and�hearing.� Examples�of�important�visual�abilities�include�the�ability�to�see�things�up�close�and�at�a�distance� (near and far vision)�or�in�low�light�contexts�(night vision),�as�well�as�the�ability�to�perceive�colors� and�judge�relative�distances�between�things�accurately�(visual color discrimination�and�depth percep- tion).�There�are�many�different�jobs�that�emphasize�only�one�or�two�of�these�visual�abilities.�For� example,� whereas� effectiveness� as� a� watch� repairer� depends� on� good� near� vision,� effectiveness� as�an�interior�designer�depends�on�visual�color�discrimination.�However,�there�are�other�jobs�in� which�effectiveness�might�depend�on�almost�all�categories�of�visual�abilities.�A�fighter�pilot�needs� near�vision�to�read�instruments�and�checklists,�far�vision�and�depth�perception�to�see�enemy�tar- gets�and�landmarks,�night�vision�to�conduct�operations�in�low�light,�and�visual�color�discrimina- tion�to�interpret�information�from�warning�lights�and�computer�readouts�correctly.
Abilities�related�to�hearing,�also�referred�to�as�auditory�abilities,�include�the�capability�to�hear�and� discriminate�sounds�that�vary�in�terms�of�loudness�and�pitch�(hearing sensitivity),�being�able�to�focus� on�a�single�sound�in�the�presence�of�many�other�sounds�(auditory attention),�and�the�ability�to�identify� and�understand�the�speech�of�another�person�(speech recognition).�Perhaps�the�most�obvious�jobs�for� which�auditory�abilities�would�be�important�are�musicians�and�composers�(yes,�we�are�going�to�ignore� exceptions�like�Beethoven,�who�was�deaf�at�the�time�he�wrote�his�Ninth�Symphony).�However,�with� these� jobs,� the� emphasis� would� likely� be� on� hearing� sensitivity� and� auditory� attention� rather� than� speech�recognition�(who�listens�to�lyrics�these�days?).�Another�job�for�which�auditory�abilities�might� be�crucially�important�is�a�restaurant�server,�especially�if�the�restaurant�is�crowded�and�noisy.�In�this� context,�a�server�needs�auditory�attention�and�speech�recognition�to�be�able�to�isolate�and�understand� the�words�of�a�single�patron�against�the�backdrop�of�the�loud�chatter.�As�an�example�of�a�company� that�exists�because�of�auditory�ability,�consider�the�case�of�Monster�Cable,�the�Brisbane,�California– based�manufacturer�of�audiovisual�cables�and�accessories.�Noel�Lee,�the�company’s�founder,�started� out�by�comparing�the�sound�of�Tchaikovsky’s�1812 Overture�and�Michael�Jackson’s�“Liberian�Girl”� using�different�types�of�speaker�wire.45�He�listened�to�the�music�over�and�over�again�and�carefully�con- sidered�the�dynamics,�loudness,�bass�response,�and�high�frequencies�of�the�music�to�determine�which�
combination� of� wire� thickness,� composition,� and� braiding� pat- tern�sounded�best.
S U M M A RY: W H AT D O E S I T M E A N F O R A N E M P LOY E E TO B E “A B L E ” ? Thus�far�in�the�chapter,�we’ve�pre- sented� you� with� a� fairly� detailed� description� of� the� domain� of� human� abilities,� which� are� sum- marized�in�Figure�10-2.�Although� the� list� of� abilities� included� in� the� figure� may� seem� somewhat�
Noel Lee founded Monster Cable after using his
extraordinary auditory abil- ity to identify which type of speaker wire sounds best.
©Richard Shotwell/AP Images
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FIGURE 10-2 What Does It Mean for an Employee to Be “Able”?
Cognitive Ability
Emotional Ability
Physical Ability
• Verbal
• Quantitative
• Reasoning
• Spatial
• Perceptual
• Self-Awareness
• Other Awareness
• Emotion Regulation
• Use of Emotions
• Strength
• Stamina
• Flexibility &
• Psychomotor
• Sensory
OVERALL ABILITY
Coordination
Source:� Adapted� from� J.J.� Johnson� and� J.B.� Cullen,� “Trust� in� Cross-Cultural� Relationships,”� in� Blackwell Handbook of Cross-Cultural Management,�ed.�M.J.�Gannon�and�K.L.�Newman�(Malden,�MA:�Blackwell,�2002),�pp.�335–60.
daunting,�we�hope�that�you�can�appreciate�that�this�set�of�abilities�describes�each�and�every�one�of�us.� Moreover,�as�we�have�alluded�to�throughout�the�chapter,�these�abilities�play�an�important�role�in�deter- mining�how�effective�we�can�be�at�different�tasks�and�jobs.
H O W I M P O R TA N T I S A B I L I T Y ?
So,�now�that�you�know�what�ability�is�and�where�it�comes�from,�let’s�turn�to�the�next�important� question:�Does�ability�really�matter?�That�is,�does�ability�have�a�significant�impact�on�job�perfor- mance� and� organizational� commitment—the� two� primary� outcomes� in� our� integrative� model� of� OB?�The�answer�to�this�question�depends�on�what�type�of�ability�you�are�referring�to—cognitive,� emotional,�or�physical.�We�focus�our�discussion�on�general�cognitive�ability�because�it’s�the�most� relevant�form�of�ability�across�all�jobs�and�is�likely�to�be�important�in�the�kinds�of�positions�that� students�in�an�OB�course�will�be�pursuing.�As�it�turns�out,�there’s�a�huge�body�of�research�linking� general�cognitive�ability�to�job�performance,�as�summarized�in�Figure�10-3.46
The�figure�reveals�that�general�cognitive�ability�is�a�strong�predictor�of�job�performance—in�par- ticular,�the�task�performance�aspect.�Across�all�jobs,�smarter�employees�fulfill�the�requirements�of� their�job�descriptions�more�effectively�than�do�less�smart�employees.47�In�fact,�of�all�the�variables� discussed�in�this�book,�none�has�a�stronger�correlation�with�task�performance�than�general�cogni- tive�ability.�Thousands�of�organizations,�many�of�which�are�quite�well�known,�assess�cognitive�abil- ity�in�efforts�to�select�the�best�candidates�available�for�specific�jobs.48�The�use�of�cognitive�ability�
10.5 How does cognitive ability affect job performance and organizational commitment?
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tests�for�this�purpose�appears�to�be�quite�reasonable,�given�that�scores�on�such�tests�have�a�strong� positive�correlation�with�measures�of�performance�across�different�types�of�jobs.49
In�fact,�this�relationship�holds�even�for�performance�in�academic�contexts.�We�mentioned�the� Scholastic�Assessment�Test,�or�the�SAT,�several�times�in�this�chapter�because�it’s�likely�to�be�quite� familiar�to�you�and�because�it�largely�reflects�general�cognitive�ability.50�Most�colleges�and�univer- sities�in�the�United�States�take�these�scores�into�account�when�deciding�which�students�to�admit� because�they�believe�that�higher�scores�increase�the�chances�that�students�will�be�successful�in�col- lege.�But�does�the�SAT�really�relate�to�how�well�someone�does�in�college?�Many�of�you�are�likely� to�be�skeptical�because�you�probably�know�someone�who�did�extremely�well�on�the�SAT�but�per- formed�poorly�as�a�college�student.�Similarly,�you�probably�know�someone�who�didn’t�do�that�well� on�the�SAT�but�who�performed�well�as�a�college�student.�Indeed,�it�is�true�that�certain�tendencies� (such�as�working�hard,�setting�high�personal�goals,�and�staying�organized)�and�choices�(such�as� which�courses�to�take)�play�a�nontrivial�role�in�the�grades�earned�in�college.51�However,�as�it�turns� out,�the�SAT�is�actually�good�at�predicting�college�performance�above�and�beyond�these�factors.� Students�with�higher�SAT�scores�tend�to�perform�much�better�in�their�first�year�of�college,�end�up� with�a�higher�cumulative�grade�point�average,�and�have�a�higher�likelihood�of�graduating.52�The� same�finding�applies�to�predicting�success�in�graduate�level�school�as�well.�The�Graduate�Manage- ment�Admission�Test,�or�GMAT,�is�similar�to�the�SAT�in�structure�and�content,�and�students�who� score�higher�on�this�test�prior�to�admission�to�graduate�school�tend�to�achieve�better�grade�point� averages�over�the�course�of�their�graduate�program.53
So�what�explains�why�general�cognitive�ability�relates�to�task�performance?�People�who�have� higher� general� cognitive� ability� tend� to� be� better� at� learning and decision making� (which� we�
FIGURE 10-3 Effects of General Cognitive Ability on Performance and Commitment
Sources:� J.W.� Boudreau,� W.R.� Boswell,� T.A.� Judge,� and� R.D� Bretz,� “Personality� and� Cognitive� Ability� as� Predictors� of� Job� Searc� among� Employed� Managers,”� Personnel Psychology� 54� (2001),� pp.� 25–50;� S.M.� Colarelli,� R.A.� Dean,� and�� C.�Konstans,�“Comparative�Effects�of�Personal�and�Situational�Influences�on�Job�Outcomes�of�New�Professionals,”�Journal of Applied Psychology�72�(1987),�pp.�558–66;�D.N.�Dickter,�M.�Roznowski,�and�D.A.�Harrison,�“Temporal�Tempering:�An� Event�History�Analysis�of�the�Process�of�Voluntary�Turnover,”�Journal of Applied Psychology�81�(1996),�pp.�705–16;�and� F.L.� Schmidt� and� J.� Hunter,� “General� Mental� Ability� in� the� World� of� Work:� Occupational� Attainment� and� Job� Perfor- mance,”�Journal of Personality and Social Psychology�86�(2004),�pp.�162–73.
Job Performance
Cognitive Ability
Organizational Commitment
Cognitive Ability
General cognitive ability has a strong positive e�ect on Task Performance. However, the correlation is higher for jobs that are more complex than average and lower for jobs that are less complex than average. The e�ects of general cognitive ability are near zero for Citizenship Behavior and Counterproductive Behavior.
General cognitive ability has a weak e�ect on A�ective Commitment, Continuance Commitment, and Normative Commitment. The desire to remain a member of the organization is not influenced much by cognitive ability.
Represents a strong correlation (around .50 in magnitude).
Represents a moderate correlation (around .30 in magnitude).
Represents a weak correlation (around .10 in magnitude).
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covered�in�detail�in�Chapter�8).�They’re�able�to�gain�more�knowledge�from�their�experiences�at�a� faster�rate,�and�as�a�result,�they�develop�a�bigger�pool�of�knowledge�regarding�how�to�do�their�jobs� effectively.54�There�are,�however,�three�important�caveats�that�we�should�mention.�First,�cognitive� ability� tends� to� be� much� more� strongly� correlated� with� task� performance� than� with� citizenship� behavior,�and�the�relationship�between�cognitive�ability�and�counterproductive�behavior�is�essen- tially�zero.55�An�increased�amount�of�job�knowledge�helps�an�employee�complete�job�tasks,�but� it�doesn’t�necessarily�affect�the�choice�to�help�a�coworker�or�refrain�from�breaking�an�important� rule.�Second,�the�positive�correlation�between�cognitive�ability�and�performance�is�even�stronger� in�jobs�that�are�complex�or�situations�that�demand�adaptability.56�Third,�people�may�do�poorly�on� a�test�of�general�cognitive�ability�for�reasons�other�than�a�lack�of�cognitive�ability.�As�an�example,� people� who� come� from� economically� disadvantaged� backgrounds� may� do� poorly� on� such� tests,� not�because�they�lack�the�underlying�cognitive�ability�but�because�they�may�not�have�had�the�learn- ing�opportunities�needed�to�provide�the�appropriate�responses.
In� contrast� to� relationships� with� job� performance,� research� has� not� supported� a� significant� linkage�between�cognitive�ability�and�organizational�commitment.57�On�the�one�hand,�we�might� expect�a�positive�relationship�with�commitment�because�people�with�higher�cognitive�ability�tend� to�perform�more�effectively,�and�therefore,�they�might�feel�they�fit�well�with�their�job.�On�the�other� hand,�we�might�expect�to�see�a�negative�relationship�with�commitment�because�people�with�higher� cognitive�ability�possess�more�job�knowledge,�which�increases�their�value�on�the�job�market,�and� in�turn�the�likelihood�that�they�would�leave�for�another�job.58�In�the�end,�knowing�how�smart�an� employee� is� tells� us� very� little� about� the� likelihood� that� he� or� she� will� remain� a� member� of� the� organization.
A P P L I C AT I O N : S E L E C T I N G H I G H C O G N I T I V E A B I L I T Y E M P LOY E E S
Given�the�strong�relationship�between�general�cognitive�ability�and�job�performance,�it�isn’t�sur- prising�that�many�organizations�apply�the�content�of�this�chapter�to�hire�new�employees.�As�an� example,�consider�how�Google�goes�about�hiring�employees�whom�it�believes�are�the�best�and�the� brightest.�To�attract�intelligent�people�to�apply�for�a�job,�the�company�placed�billboards�in�Silicon� Valley�and�Harvard�Square�with�the�brainteaser,�“first�10-digit�prime�found�in�consecutive�digits�of� e.com.”�(The�“e”�in�the�question�refers�to�the�transcendental�number�used�as�the�basis�for�natural� logarithms,�and�the�first�10-digit�prime�number�in�this�string�turns�out�to�be�7427466391.)�People� who�solved�the�brainteaser�went�to�the�website�where�there�was�a�more�difficult�brainteaser.�Solv- ing� that� one� resulted� in� Google� asking� for� the� person’s� résumé.59� The� company� also� developed� something�called�the�Google Labs Aptitude Test�(GLAT�for�short)�and�published�it�in�magazines� that�smart�techies�might�read.�The�GLAT�is�similar�to�the�SAT�and�includes�questions�such�as,� “How�many�different�ways�can�you�color�an�icosahedron�with�one�of�three�colors�on�each�face?”� Google�used�the�GLAT�to�attract�people�who�are�smart�and�who�are�interested�in�the�types�of� problems�in�the�test.�The�people�who�are�ultimately�brought�in�for�a�job�interview�typically�face� 10-person� interview� panels� and� are� confronted� with� very� difficult� questions.� People� who� apply�� for�a�technical�job�might�be�asked�to�solve�math�algorithms�and�answer�technical�questions�about� software� and� computer� networking.60� It’s� also� likely� that� they’ll� be� asked� brainteaser� questions� that�rely�upon�both�general�intelligence�and�the�originality�facet�of�reasoning�ability.�For�example,� “How�many�golf�balls�fit�in�a�school�bus?”�and�“You�are�shrunk�to�the�height�of�a�nickel�and�your� mass�is�proportionally�reduced�so�as�to�maintain�your�original�density.�You�are�then�thrown�into� an�empty�glass�blender.�The�blades�will�start�moving�in�60�seconds.�What�do�you�do?”61�Although� you� might� not� look� forward� to� the� prospect� of� having� to� answer� these� types� of� questions� in� an� already�stressful�job�interview,�other�companies�such�as�Microsoft�use�a�similar�approach�to�hire� highly�intelligent�employees,�so�it’s�something�for�which�you�might�want�to�be�prepared.62
Of�course,�companies�outside�the�high-technology�sector�are�also�interested�in�hiring�employees� who�have�high�cognitive�ability,�and�applicants�for�jobs�in�many�of�these�companies�are�given�a�cog- nitive�ability�test�as�part�of�the�selection�process.�One�of�the�most�widely�used�tests�is�the�Wonderlic
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FIGURE 10-4 Sample Wonderlic Questions
1. Which of the following is the earliest date?
A) Jan. 16, 1898 B) Feb. 21, 1889 C) Feb. 2, 1898 D) Jan. 7, 1898 E) Jan. 30, 1889
2. LOW is to HIGH as EASY is to ?.
A) SUCCESSFUL B) PURE C) TALL D) INTERESTING E) DIFFICULT
3. A featured product from an Internet retailer generated 27, 99, 80, 115 and 213 orders over a 5-hour period. Which graph below best represents this trend?
4. What is the next number in the series? 29 41 53 65 77 ?
A) 75 B) 88 C) 89 D) 98 E) 99
5. One word below appears in color. What is the OPPOSITE of that word? She gave a complex answer to the question and we all agreed with her.
A) long B) better C) simple D) wrong E) kind
6. Jose’s monthly parking fee for April was $150; for May it was $10 more than April; and for June $40 more than May. His average monthly parking fee was? for these 3 months.
A) $66 B) $160 C) $166 D) $170 E) $200
7. If the first two statements are true, is the final statement true?
Sandra is responsible for ordering all office supplies.
Notebooks are office supplies.
Sandra is responsible for ordering notebooks.
A) yes B) no C) uncertain
8. Which THREE choices are needed to create the figure on the left? Only pieces of the same color may overlap.
9. Which THREE of the following words have similar meanings?
A) observable B) manifest C) hypothetical D) indefinite E) theoretical
10. Last year, 12 out of 600 employees at a service organization were rewarded for their excellence in customer service, which was ? of the employees.
A) 1% B) 2% C) 3% D) 4% E) 6%
Answers:
1. E, 2. E, 3. D, 4. C, 5. C, 6. D, 7. A, 8. BCD, 9. CDE, 10. B
A B C D E
A B C D E
Source:�Wonderlic�WPT—Sample�Questions.�Reprinted�with�permission�of�Wonderlic,�Inc.�Copyright�2007�Wonderlic,�Inc� with�permission.�
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Cognitive Ability Test,�a�12-minute�test�of�general�cognitive�ability�that�consists�of�50�questions.�It’s� been�in�use�for�several�decades�now�and�has�been�given�to�more�than�120�million�people�by�thou- sands�of�organizations.63�From�the�example�items�that�appear�in�Figure�10-4,�you�should�be�able�to� see�how�the�items�correspond�with�many�of�the�cognitive�abilities�that�we’ve�described�previously.�
People� who� take� the� test� receive� one� point� for� each� correct� response,� and� those� points� are� summed�to�give�a�total�score�that�can�be�used�as�a�basis�for�selecting�people�for�different�jobs.�The� Wonderlic�User’s�Manual�offers�recommendations�for�minimum�passing�scores�for�different�job� families,�some�of�which�are�included�in�Table�10-3.�For�example,�a�score�of�17�is�the�minimum�sug- gested�score�for�an�unskilled�laborer,�a�score�of�21—which�is�the�average�for�high�school�graduates� and�corresponds�to�an�IQ�of�approximately�100—is�the�minimum�suggested�score�for�a�firefighter.� A�score�of�28�is�the�minimum�suggested�score�for�upper-level�managerial�and�executive�work�and� around�the�average�for�all�college�graduates.
Chances�are�you’ll�hear�about�the�Wonderlic�Cognitive�Ability�Test�every�March�and�April.�This� is�because�the�National�Football�League�(NFL)�administers�the�test�to�players�who�enter�the�draft,� and� teams� consider� the� scores� when� selecting� players.� One� question� that� people� always� debate� during�this�time�is�whether�scores�on�a�test�of�cognitive�ability�are�relevant�to�a�football�player’s� performance�on�the�field.�Although�supporters�of�the�Wonderlic’s�use�in�the�NFL�argue�that�cog- nitive�ability�is�necessary�to�remember�plays�and�learn�complex�offensive�and�defensive�systems,� many�people�wonder�how�the�ability�to�answer�questions�like�those�listed�in�Figure�10-4�relates�to� a�player’s�ability�to�complete�a�pass,�run�for�a�touchdown,�tackle�an�opponent,�or�kick�a�field�goal.� Moreover,�detractors�of�the�Wonderlic�wonder�why�a�poor�score�should�overshadow�a�record�of� superior� accomplishments� on� the� playing� field.� So� who’s� right?� Well,� the� results� of� at� least� one� study�indicate�that�a�player’s�Wonderlic�score�does�not�predict�subsequent�performance�in�the�NFL� and�that�this�effect�is�not�influenced�much�by�the�position�of�the�player�being�considered.64
10.6 What steps can organiza- tions take to hire people with high levels of cognitive ability?
TABLE 10-3 Suggested Minimum Wonderlic Scores for Various Jobs
JOB MINIMUM SCORES
Mechanical Engineer 30
Attorney 29
Executive 28
Teacher 27
Nurse 26
Office Manager 25
Advertising Sales 24
Manager/Supervisor 23
Police Officer 22
Firefighter 21
Cashier 20
Hospital Orderly 19
Machine Operator 18
Unskilled Laborer 17
Maid-Matron 16
Source:�Wonderlic Cognitive Ability Test and Scholastic Level Exam: User’s Manual�(Vernon�Hills,�IL:�Wonderlic�Cognitive� Ability�Test,�Inc.,�1992),�pp.�28–29.�Reprinted�with�permission.
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Before� closing,� we� should� mention� here� that� the� use� of� cognitive� ability� tests� for� hiring� pur- poses�may�unintentionally�discriminate�against�groups�of�individuals�who,�for�a�variety�of�reasons� that�we�discussed�earlier�in�this�chapter,�tend�to�score�lower.65�A�great�deal�of�research�has�exam- ined�this�issue,�and�has�concluded�that�although�these�tests�are�not�technically�biased�because�they� do�not�underpredict�the�job�performance�of�disadvantaged�groups,�they�should�be�used�cautiously,� especially�in�situations�in�which�a�diverse�workforce�is�desired.66�One�way�of�accomplishing�this�is� to�use�a�combination�of�hiring�tests.�In�addition�to,�or�instead�of,�a�test�of�general�cognitive�ability,� a�company�could�use�a�battery�of�tests�that�measure�narrower�cognitive�abilities�and�noncognitive� traits�such�as�emotional�intelligence�and�personality.67�It�may�also�be�possible�that�organizations� could� deemphasize� cognitive� ability� when� hiring,� and� instead,� train� employees� in� the� cognitive� skills�needed�for�the�job.�Although�this�type�of�training�isn’t�something�that�boosts�IQ�scores,�it� has�been�shown�to�enhance�important�mental�skills,�as�well�as�increasing��confidence�and�perfor- mance�in�a�variety�of�tasks.68
10.1� Ability�refers�to�the�relatively�stable�capabilities�of�people�to�perform�a�particular�range�of� different�but�related�activities.�Differences�in�ability�are�a�function�of�both�genes�and�the� environment.
10.2� Cognitive�abilities�include�verbal�ability,�quantitative�ability,�reasoning�ability,�spatial� ability,�and�perceptual�ability.�General�cognitive�ability,�or�g,�underlies�all�of�these�more� specific�cognitive�abilities.
10.3� Emotional�intelligence�includes�four�specific�kinds�of�emotional�skills:�self-awareness,� other�awareness,�emotion�regulation,�and�use�of�emotions.
10.4� Physical�abilities�include�strength,�stamina,�flexibility�and�coordination,�psychomotor�abili- ties,�and�sensory�abilities.
10.5� General�cognitive�ability�has�a�strong�positive�relationship�with�job�performance,�due� primarily�to�its�effects�on�task�performance.�In�contrast,�general�cognitive�ability�is�only� weakly�related�to�organizational�commitment.
10.6� Many�organizations�use�cognitive�ability�tests�to�hire�applicants�with�high�levels�of�general� cognitive�ability.�One�of�the�most�commonly�used�tests�is�the�Wonderlic�Cognitive�Ability�Test.
TA K E AWAY S
K E Y T E R M S
�•� Ability� p. 306 �•� Cognitive�ability p. 307 �•� Verbal�ability� p. 307 �•� Quantitative�ability� p. 309 �•� Reasoning�ability� p. 310 �•� Spatial�ability� p. 310 �•� Perceptual�ability� p. 311 �•� General�cognitive�ability� p. 312 �•� Emotional�intelligence� p. 313 �•� Self-awareness� p. 313 �•� Other�awareness� p. 314
�•� Emotion�regulation� p. 314 �•� Use�of�emotions� p. 314 �•� Strength� p. 318 �•� Stamina� p. 318 �•� Flexibility� p. 318 �•� Coordination� p. 318 �•� Psychomotor�ability� p. 318 �•� Sensory�abilities� p. 320 �•� Wonderlic�Cognitive��
Ability�Test� p. 325
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10.1� What�roles�do�learning,�education,�and�other�experiences�play�in�determining�a�person’s� abilities?�For�which�type�of�ability—cognitive,�emotional,�or�physical—do�these�factors�play� the�largest�role?
10.2� Think�of�a�job�that�requires�very�high�levels�of�certain�cognitive�abilities.�Can�you�think�of� a�way�to�redesign�that�job�so�that�people�who�lack�those�abilities�could�still�perform�the� job�effectively?�Now�respond�to�the�same�question�with�regard�to�emotional�and�physical� abilities.
10.3� Consider�your�responses�to�the�previous�questions.�Are�cognitive,�emotional,�and�physical� abilities�different�in�the�degree�to�which�jobs�can�be�redesigned�to�accommodate�people� who�lack�relevant�abilities?�What�are�the�implications�of�this�difference,�if�there�is�one?
10.4� Think�of�experiences�you’ve�had�with�people�who�demonstrated�unusually�high�or�low� levels�of�emotional�intelligence.�Then�consider�how�you�would�rate�them�in�terms�of�their� cognitive�abilities.�Do�you�think�that�emotional�intelligence�“bleeds�over”�to�affect�people’s� perceptions�of�cognitive�ability?
10.5� What�combination�of�abilities�is�appropriate�for�the�job�of�your�dreams?�Do�you�� possess�those�abilities?�If�you�fall�short�on�any�of�these�abilities,�what�could�you�do�� to�improve?
D I S C U S S I O N Q U E S T I O N S
The�FBI’s�website�provides�a�vivid�description�of�the�job�of�a�special�agent.�One�day�a�special� agent�may�be�focused�on�recruiting�a�human�source�of�information�from�a�foreign�country�to� avert�a�terrorist�attack.�Another�day�may�involve�several�different�activities;�testifying�in�court�in� the�morning,�planning�a�sting�operation�over�lunch,�chasing�down�a�suspect�on�a�Most�Wanted� list�in�the�afternoon,�and�speaking�at�a�community�event�in�the�evening.�To�be�effective�at�these� tasks,�special�agents�not�only�need�to�be�physically�fit,�but�they�also�need�to�be�able�to�work� independently,�be�adaptable�to�changing�and�sometimes�very�dangerous�situations,�make�logical� decisions�based�on�all�available�facts,�and�communicate�effectively�and�articulately,�both�orally� and�in�writing.
To�make�sure�new�hires�possess�these�abilities,�the�FBI�requires�that�special�agent�applicants� go�through�a�series�of�examinations,�which�include�a�three-hour�session�consisting�of�cognitive,� behavioral,�and�logical�reasoning�tests,�a�90-minute�written�test�that�measures�problem�solving� abilities,�a�one-hour�panel�interview�intended�to�supplement�the�information�gathered�in�the� other�testing,�physical�fitness�tests,�and�a�medical�exam�which,�among�other�things,�tests�vision� and�hearing.�One�of�the�assumptions�behind�this�testing�is�that�new�hires�will�possess�the�� abilities�necessary�to�have�an�effective�and�long�career�as�an�FBI�special�agent.�But�is�this� assumption�valid?
On�the�one�hand,�many�of�the�abilities�that�are�tested�during�the�hiring�process�remain�rela- tively�stable�over�time.�So,�for�example,�an�agent�who�scored�high�on�the�logical�reasoning�ability� test�when�hired�will�have�high�logical�reasoning�ability�years�later.�On�the�other�hand,�some�abili- ties�change�over�time,�and�not�for�the�better!�Most�notably,�physical�abilities�tend�to�erode�due�to� the�process�of�aging�and�coping�with�the�demands�of�work�and�life.�In�recognition�of�this�specific� issue,�the�FBI�recently�instituted�annual�physical�fitness�testing.�The�test�includes�the�number� of�sit-ups�in�one�minute,�a�timed�300-meter�sprint,�the�maximum�number�of�pushups�(untimed),� and�a�timed�1.5�mile�run.�The�scoring�system�is�based�on�an�agent’s�age�and�sex,�and�those�who�
C A S E : F B I
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score�below�standard�(or�who�do�not�take�the�test�without�a�medical�excuse)�are�given�a�rating� of�no�higher�than�“Minimally�Successful”�on�the�“Maintaining�High�Professional�Standards”� dimension�of�their�annual�performance�review.
10.1 Which�specific�cognitive�and�emotional�abilities�are�likely�to�be�most�important�for�FBI� special�agents?�Explain.
10.2 Identify�the�specific�physical�abilities�that�are�assessed�in�the�FBI’s�annual�physical�fitness� test.�Describe�the�responsibilities�of�special�agents�for�which�these�abilities�are�likely�to�be� most�important.
10.3 How�might�the�frequency�of�various�special�agent�responsibilities�make�it�important�to�� test�for�physical�abilities�(but�not�cognitive�or�emotional�abilities)�on�an�annual�basis?� Explain.
Sources: FBI,�“News�and�Features,”�https://www.fbi.gov�(accessed�March�20,�2017);�FBI,�“Jobs:�Career�Paths,”�https:// www.fbijobs.gov/career-paths� (accessed� March� 20,� 2017);� M.S.� Schmidt,� “Battling� Crime� and� Calories� at� F.B.I.� (Fit� Bureau� of� Investigation),”� The New York Times,� April� 4,� 2015.� https://www.nytimes.com/2015/04/06/us/battling-crime� -and-calories-at-fbi-fit-bureau-of-investigation.html?emc=edit_th_20150406&nl=todaysheadlines&nlid=71709239&_r=1.
E X E R C I S E : E M OT I O N A L I N T E L L I G E N C E
The�purpose�of�this�exercise�is�to�help�you�become�more�aware�of�your�emotions�and�the�emo- tions�of�others,�as�well�as�to�see�how�emotions�can�be�regulated�and�used�in�your�daily�life.�This� exercise�uses�groups,�so�your�instructor�will�either�assign�you�to�a�group�or�ask�you�to�create�your� own�group.�The�exercise�has�the�following�steps:
10.1 Think�about�situations�in�which�you’ve�experienced�each�of�the�following�four�emotions:
� •� Joy � •� Anxiety � •� Sadness � •� Anger
10.2 In� writing� or� in� discussion� with� your� group,� answer� the� following� questions� about� each� situation:
� a.� What,�exactly,�triggered�your�emotion�in�this�situation? � b.� What�impact�did�your�emotions�have�on�the�outcome�of�the�situation?�Consider�how�
your�emotions�affected�you,�others,�and�the�general�outcome�of�the�situation.�(Was�it� positive�or�negative?)
� c.� What�strategies�did�you�use�to�deal�with�the�emotion? � d.� What�other�strategies�could�you�have�used�to�deal�with�the�emotion?
For�example,�one�student�noted:�“I�always�get�anxious�when�I�take�tests.�Last�week,�I�was� supposed�to�have�a�midterm�in�Accounting,�and�sure�enough,�the�upcoming�test�triggered� my�anxiety.�Because�I�was�anxious,�I�put�off�studying,�and�I�tried�to�get�some�friends�to� go�out�to�a�club�with�me.�We�all�had�a�good�time�that�night,�but�the�next�day�I�got�a�D�on� my�Accounting�test,�and�two�of�my�friends�failed�their�Management�midterms.�I�was�using� procrastination�and�avoidance�as�strategies�for�dealing�with�my�anxiety.�Another�strategy�I� could�have�used�was�to�face�the�anxiety�head-on�by�talking�to�my�professor�to�get�a�better� understanding�of�the�material�that�was�going�to�be�on�the�test,�or�by�getting�a�group�of�my� friends�together�to�form�a�study�group�for�Accounting.”
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10.3 Compare� your� responses� with� the� responses� of� your� fellow� group� members.� As� a� group,� answer�the�following�questions:
� a.� What�emotional�triggers�do�you�share?�In�what�ways�are�your�emotional�triggers� different?
� b.� Are�there�some�strategies�for�dealing�with�emotions�that�seem�especially�helpful?� Unhelpful?
� c.� According�to�the�stories�told�by�the�group,�are�there�times�when�emotions�actually�help� get�a�task�done�or�a�goal�accomplished?�How�might�you�harness�your�emotions�to�help� you�achieve�specific�outcomes�in�the�future?
Source:�Adapted�from�M.A.�Brackett�and�N.A.�Katulak.�“Emotional�Intelligence�in�the�Classroom:�Skill-Based�Training� for�Teachers�and�Students.”�Improving Emotional Intelligence: A Practitioner’s Guide,�ed.�J.�Ciarrochi�and�J.D.�Mayer.�New� York:�Psychology�Press/Taylor�&�Francis,�2006,�pp.�1–27.
10.1� Fleishman,�E.A.;�D.P.� Costanza;�and�J.�� Marshall-Mies.�� “Abilities.”�In�� An Occupational Information System for the 21st Century: The Development of O*NET,�ed.�N.G.� Peterson,�M.D.� Mumford,�W.C.�Bor- man,�P.R.�Jeanneret,� and�E.A.�Fleishman.� Washington,�DC:� American�Psychologi- cal�Association,�1999,� pp.�175–95.
10.2� Neisser,�U.;�G.�Boo- doo;�T.J.�Bouchard;� A.W.�Boykin;�N.� Brody;�S.J.�Ceci;�D.F.� Halpern;�J.C.�Loehlin;� R.�Perloff;�R.J.�Stern- berg;�and�S.�Urbina.� “Intelligence:�Knowns� and�Unknowns.”� American Psychologist� 51�(1996),�pp.�77–101.
10.3� McCartney,�K.;�M.J.� Harris;�and�F.�Ber- nieri.�“Growing�Up� and�Growing�Apart:�
A�Developmental� Meta-Analysis�of�Twin� Studies.”�Psychological Bulletin�107�(1990),�� pp.�226–37.
10.4� Cottrell,�J.M.;�D.A.� Newman;�and�G.I.� Roisman.�“Explain- ing�the�Black-White� Gap�in�Cognitive� Test�Scores:�Toward� a�Theory�of�Adverse� Impact.”��Journal of Applied Psychology�100� (2015),�pp.�1713–36.�
10.5� Ceci,�S.J.�“How�Much� Does�Schooling� Influence�General� Intelligence�and�� Its�Cognitive� Components?�A� Reassessment�of�the� Evidence.”�Develop- mental Psychology�27� (1991),�pp.�703–22.
10.6� Kohn,�M.L.,�and�C.� Schooler.�“Occupa- tional�Experience�and� Psychological�Func- tioning:�An�Assessment� of�Reciprocal�Effects.”� American Sociological
Review�38�(1973),�� pp.�97–118;�Kohn,� M.L.,�and�C.�Schooler.� Work and Personality: An Inquiry into the Impact of Social Stratification.�Norwood,� NJ:�Ablex,�1983;�� and�Neisser�� et�al.,�“Intelligence.”
10.7� Winerman,�L.� “Smarter�Than�Ever?”� Monitor on Psychol- ogy,�March�2013,�pp.� 30–33.
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E N D N OT E S
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Patterns.”��Journal of Applied Psychology�101� (2016),�pp.�569–81.�
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(Whole�No.�1,�1938);� and�Vernon,�P.E.�The Structure of Human Abilities.�London:� Methuen,�1950.
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10.15� Neisser�et�al.,� “Intelligence.”
10.16� Rindermann,�H.,�and� J.�Thompson.�“Cogni- tive�Capitalism:�The� Effect�of�Cognitive� Ability�on�Wealth,� as�Mediated�through� Scientific�Achieve- ment�and�Economic� Freedom.”�Psychologi- cal Science�22�(2011),� pp.�754–63.
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Annals of Epidemiology� 17�(2007),�pp.�278–88.
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10.21� Bar-On,�R.�Develop- ment of the Bar-On EQ-i: A Measure of Emotional Intel- ligence and Social Intelligence.�Toronto:� Multi-Health�Systems,� 1997;�Gardner,�H.� The Shattered Mind.� New�York:�Knopf,� 1975;�Goleman,�D.� Emotional Intelligence: Why It Can Matter More Than IQ.�New� York:�Bantam�Books,� 1995;�and�Thorndike,� R.K.�“Intelligence�and� Its�Uses.”�Harper’s Magazine�140�(1920),� pp.�227–335.
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Traits?”�American Psy- chologist�63�(2008),� pp.�503–17.
10.23� Salovey,�P.,�and�J.D.� Mayer.�“Emotional� Intelligence.”�Imagi- nation, Cognition, and Personality�9�(1990),� pp.�185–211;�and� Mayer,�J.D.;�R.D.� Roberts;�and�S.G.� Barside.�“Human� Abilities:�Emotional� Intelligence.”�Annual Review of Psychology� 59�(2008),�� pp.�507–36.
10.24� Davies,�M.;�L.� Stankov;�and�R.D.� Roberts.�“Emotional� Intelligence:�In� Search�of�an�Elusive� Construct.”�Journal of Personality and Social Psychology�75�(1998),� pp.�989–1015.
10.25� Law,�K.S.;�C.S.�Wong;� and�L.J.�Song.�“The� Construct�and�Crite- rion�Validity�of�Emo- tional�Intelligence�and� Its�Potential�Utility�for� Management�Studies.”� Journal of Applied Psychology�89�(2004),� pp.�483–96.
10.26� Ibid.
10.27� Farnham,�“Are�You� Smart�Enough�to� Keep�Your�Job?”
10.28� Ibid.
10.29� Davies�et�al.,�“Emo- tional�Intelligence”;� and�Law�et�al.,�“The� Construct�and�Crite- rion�Validity�of�Emo- tional�Intelligence.”
10.30� Ibid.
10.31� Parke,�M.R.,�M.G.� Seo;�and�E.N.�Sherf.�
"Regulating�and� Facilitating:�The�Role� of�Emotional�Intel- ligence�in�Maintaining� and�Using�Positive� Affect�for�Creativity."� Journal of Applied Psychology�100�(2015),� pp.�917–34.
10.32� Cherniss,�C.�“The� Business�Case�for� Emotional�Intelli- gence.”�Consortium for Research on Emotional Intelligence in Organi- zations,�2004,�http:// www.eiconsortium. org/research/business_� case_for_ei.htm;� Cote,�S.,�and�C.T.H.� Miners.�“Emotional� Intelligence,�Cogni- tive�Intelligence,�and� Job�Performance.”� Administrative Science Quarterly�51�(2006),� pp.�1–28;�Fisher,�A.� “Success�Secret:�A� High�Emotional�IQ.”� Fortune�138,�October� 26,�1998,�p.�293,� ProQuest�database� (accessed�May�14,� 2007);�Kendell,�J.� “Can’t�We�All�Just� Get�Along?�‘Emo- tional�Intelligence,’�or� EI,�May�Sound�Like� a�Squishy�Manage- ment�Concept—But� It�Gets�Results.”� BusinessWeek,�Octo- ber�9,�2000,�p.�F18,� ProQuest�database� (accessed�May�14,� 2007);�Schwartz,�T.� “How�Do�You�Feel?”� Fast Company,�June� 2000,�p.�296,�http:// pf.fastcompany.com/ magazine/35/emotion� .html;�Walter,�F.;�M.S.� Cole;�R.H.�Hum- phrey.�“Emotional�
Intelligence:�Sine�Qua� Non�of�Leadership�of� Folderol.”�Academy of Management Perspec- tives�25�(2011),�pp.� 45–58;�and�Chien� Farh,�C.I.C.;�M.G.� Seo;�and�P.E.�Tesluk.� “Emotional�Intel- ligence,�Teamwork� Effectiveness,�and� Job�Performance:�The� Moderating�Role�of� Job�Context.”�Journal of Applied Psychol- ogy�97�(2012),�pp.� 890–900.
10.33� Cherniss,�“The� Business�Case”;�and� Schwartz,�“How�Do� You�Feel?”
10.34� “Emotional�Intel- ligence�Gets�More� Sales.”�A&P Sales Improvement,�Novem- ber�20,�2010,�http:// www.a-and-p.com/ apblog/?tag=loreal;� and�Cherniss,�“The� Business�Case.”
10.35� Joseph,�D.,�J.�Jin;�D.� A.�Newman;�and�E.� H.�O’Boyle.�"Why� Does�Self-Reported� Emotional�Intelligence� Predict�Job�Perfor- mance?"�Journal of Applied Psychology�100� (2015),�pp.�298–342.
10.36� Cote�and�Min- ers,�“Emotional� Intelligence.”
10.37� Austin,�E.J.;�D.�Far- relly;�C.�Black;�and�H.� Moore.�“Emotional� Intelligence,�Machia- vellianism�and�Emo- tional�Manipulation:� Does�EI�Have�a�Dark� Side?”�Personality and Individual Differences�43�(2007),�
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pp.�179–89;�and� Winkel,�D.�E.;�R.L.� Wyland;�M.A.�Shaf- fer;�and�P.�Clason.� “A�New�Perspective� on�Psychological� Resources:�Unantici- pated�Consequences� of�Impulsivity�and� Emotional�Intel- ligence.”�Journal of Occupational and Organizational Psy- chology�84�(2010),�pp.� 79–94.
10.38� Ibid.
10.39� Carr,�D.�“Emotional� Intelligence,�PSE�and� Self�Esteem:�A�Cau- tionary�Note.”�Pastoral Care in Education�18� (2000),�pp.�27–33.
10.40� Bar-On,�Development of the Bar-On EQ-i.
10.41� Conte,�J.M.,�and�M.A.� Dean.�“Can�Emo- tional�Intelligence� Be�Measured?”�In�A Critique of Emotional Intelligence: What Are the Problems and How Can They Be Fixed?,� ed.�K.R.�Murphy.� Mahwah,�NJ:�� Erlbaum,�2006,�� pp.�54–81.
10.42� Law�et�al.,�“The�Con- struct�and�Criterion� Validity.”
10.43� Fleishman,�E.A.� “Human�Abilities� and�the�Acquisition� of�Skill.”�In�Acquisi- tion of Skill,�ed.�E.A.� Bilodeau.�New�York:� Academic�Press,�1966,� pp.�147–67;�Fleish- man�et�al.,�“Abilities”;� Fleishman,�E.A.,�and� M.E.�Reilly.�Handbook
of Human Abilities: Definitions, Measure- ments, and Job Task Requirements.�Palo� Alto,�CA:�Consulting� Psychologists�Press,� 1992;�and�O*NET� website.
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10.45� Safer,�W.�“How� Monster�Cable�Got� Wired�for�Growth.”� CNNMoney.com,�� April�20,�2009,�� http://money.cnn� .com/2009/04/30/ smallbusiness/how_ monster_cable_got_ started.fsb/index.htm.
10.46� Lubinski,�D.�“Intro- duction�to�the�Special� Section�on�Cognitive� Abilities:�100�Years� after�Spearman’s� (1904)�“‘General� Intelligence,’�‘Objec- tively�Determined�and� Measured.’”�Journal of Personality and Social Psychology�86�(2004),� pp.�96–111.
10.47� Hunter,�J.E.,�and�F.L.� Schmidt.�“Intelligence� and�Job�Performance:� Economic�and�Social� Implications.”�Psychol- ogy, Public Policy, and Law�2�(1996),�pp.� 447–72;�Lubinski,� “Introduction�to�the� Special�Section”;�and� Schmidt,�F.L.,�and� J.�Hunter,�“General�
Mental�Ability�in� the�World�of�Work:� Occupational�Attain- ment�and�Job�Perfor- mance.”�Journal of Personality and Social Psychology�86�(2004),� pp.�162–73.
10.48� Seligman,�D.�“Brains� in�the�Office.”� Fortune,�January�13,� 1997,�p.�38,�ProQuest� database�(accessed� May�14,�2007).
10.49� Schmidt,�F.L.,�and� J.E.�Hunter.�“Select� on�Intelligence.”�In� Blackwell Handbook of Principles of Organi- zational Behavior,�ed.� E.A.�Locke.�Malden,� MA:�Blackwell,�2000,� pp.�3–14.
10.50� Frey,�M.C.,�and�D.K.� Detterman.�“Scho- lastic�Assessment�of� g?�The�Relationship� between�the�Scholas- tic�Assessment�Test� and�General�Cognitive� Ability.”�Psychological Science�15�(2004),�� pp.�373–78.
10.51� Keiser�et�al.,�"Why� Women�Perform�Bet- ter�in�College�Than� Admission�Scores� Would�Predict."�
10.52� Korbin,�J.L.;�W.J.� Camara;�and�G.B.� Milewski.�“The�Utility� of�the�SAT�I�and�SAT� II�for�Admissions� Decisions�in�� California�and�the� Nation.”�The College Board, Research Report No. 2002–6.� New�York:�College� Entrance�Examination�� Board,�2002.
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10.53� Kuncel,�N.R.;�M.A.� Crede;�and�L.L.� Thomas.�“A�Meta- Analysis�of�the� Predictive�Validity� of�the�Graduate� Management�Admis- sion�Test�(GMAT)� and�Undergraduate� Grade�Point�Average� (UGPA)�for�Graduate� Student�Academic� Performance.”�Acad- emy of Management Learning & Education� 6�(2007),�pp.�51–68;� and�Kuncel,�N.R.,�and� S.A.�Hezlett.�“Fact� and�Fiction�in�Cogni- tive�Ability�Testing� for�Admissions�and� Hiring�Decisions.”� Current Directions in Psychological Science�19�(2010),�� pp.�339–45.
10.54� Hunter�and�Schmidt,� “Intelligence�and� Job�Performance”;� and�Schmidt,�F.L.;� J.E.�Hunter;�A.N.� Outerbridge;�and�S.� Goff.�“The�Joint�Rela- tions�of�Experience� and�Ability�with�Job� Performance:�A�Test� of�Three�Hypotheses.”� Journal of Applied Psychology�73�(1988),� pp.�46–57.
10.55� Gonzalez-Mule,�E.;� M.K.�Mount;��and�I.S.� Oh.�"A�Meta-Analysis� of�the�Relationship� between�General�Men- tal�Ability�and�Non- task�Performance."� Journal of Applied Psychology�99�(2014),� pp.�1222–43;�and� Motowidlo,�S.J.;�W.S.� Borman;�and�M.J.�
Schmit.�“A�Theory�of� Individual�Differences� in�Task�and�Contex- tual�Performance.”� Human Performance� 10�(1997),�pp.�71–83.
10.56� LePine,�J.A.;�J.A.� Colquitt;�and�A.� Erez.�“Adaptability� to�Changing�Task� Contexts:�Effects�of� General�Cognitive� Ability,�Conscientious- ness,�and�Openness�to� Experience.”�Person- nel Psychology�53� (2000),�pp.�563–93;� and�Schmidt�and� Hunter,�“Select�on� Intelligence.”
10.57� Boudreau,�J.W.;�W.R.� Boswell;�T.A.�Judge;� and�R.D.�Bretz.�“Per- sonality�and�Cognitive� Ability�as�Predictors� of�Job�Search�among� Employed�Managers.”� Personnel Psychology� 54�(2001),�pp.�25–50;� Colarelli,�S.M.;�R.A.� Dean;�and�C.�Kon- stans.�“Comparative� Effects�of�Personal� and�Situational� Influences�on�Job� Outcomes�of�New�Pro- fessionals.”�Journal of Applied Psychology�72� (1987),�pp.�558–66;� and�Dickter,�D.N.;�M.� Roznowski;�and�D.A.� Harrison.�“Temporal� Tempering:�An�Event� History�Analysis� of�the�Process�of� Voluntary�Turnover.”� Journal of Applied Psychology�81�(1996),� pp.�705–16.
10.58� Boudreau�et�al.,�“Per- sonality�and�Cognitive� Ability.”
10.59� “Brain�Teasers�Help� Google�Recruit� Workers.”�CNN.com Technology,�November� 4,�2004,�http://www� .topcoder.com/� pressroom/cnn_� 110404.pdf.
10.60� Ibid.
10.61� Carlson,�N.�“15� Google�Interview� Questions�That�Will� Make�You�Feel�Stu- pid.”�Business Insider SAI,�November�8,� 2010,�http://www� .businessinsider� .com/15-google- interview-questions- that-will-make-you-feel- stupid-2010-11;�and� Kaplan,�M.�“Want�a� Job�at�Google?�Try� These�Brainteasers� First.”�CNNMoney .com,�August�30,�2007,� http://money.cnn� .com/2007/08/29/� technology/brain_� teasers.biz2/index.htm.
10.62� Poundstone,�W.�How Would You Move Mount Fuji: Microsoft’s Cult of the Puzzle.�New� York:�Little,�Brown,� 2003.
10.63� Wonderlic�website,� http://www.wonderlic� .com/Products/� product.asp?prod_ id=4�(accessed�� July�12,�2006).
10.64� Lyons,�B.D.;�B.J.�Hoff- man;�J.W.�Michel.� “Not�Much�More� Than�g?�An�Examina- tion�of�the�Impact�of� Intelligence�on�NFL� Performance.”�Human Performance�22� (2009),�pp.�225–45.
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10.65� Campbell,�J.P.�"Group� Differences�and� Personnel�Decisions:� Validity,�Fairness�and� Affirmative�Action."� Journal of Vocational Behavior�49�(1996),� pp.�122–58.
10.66� Berry,�C.M.,�and�P.� Zhao.�“Addressing� Criticisms�of�Exist- ing�Predictive�Bias� Research:�Cognitive� Ability�Test�Scores� Still�Overpredict�Afri- can�Americans’�Job� Performance.”��Jour- nal of Applied Psychol- ogy�100�(2015),�pp.� 162–79;�Hartigan,�J.� A.,�and�A.K.�Wigdor.�� Fairness in Employ- ment Testing: Validity Generalization, Minor- ity Issues and The General Aptitude Test Battery. Washing- ton,�DC:�National� Academy�Press,�1989;� and�Mattern,�K.D.,�
and�B.F.�Patterson.� “Test�of�Slope�and� Intercept�Bias�in� College�Admissions:� A�Response�to� Aguinis,�Culpepper,� and�Pierce�(2010).”�� Journal of Applied Psychology�98�(2013),� pp.�134–47.
10.67� Bosco,�F.;�D.G.� Allen;�and�K.�Singh.� “Executive�Attention:� An�Alternative�Per- spective�on�General� Mental�Ability,� Performance,�and�Sub- group�Differences.”�� Personnel Psychol- ogy�68�(2015),�pp.� 859–98;�De�Corte,�W.;� F.�Lievens;�and�P.R.� Sackett.�“Combining� Predictors�to�Achieve� Optimal�Trade-offs� Between�Selection� Quality�and�� Adverse�Impact.”�� Journal of Applied Psychology�92�(2007),��
pp.�1380–93;�Ployhart,� R.E.,�and�B.C.�Holtz.� “The�Diversity-� Validity�Dilemma:� Strategies�for�Reduc- ing�Racioethnic�and� Sex�Subgroup�Differ- ences�and�Adverse� Impact�in�Selection.”�� Personnel Psychol- ogy�61�(2008),�pp.� 153–72;�and�Wee,�S.;� D.A.�Newman;�and� D.L.�Joseph.�“More� Than�g:�Selection� Quality�and�Adverse� Impact�Implications�of� Considering�Second- Stratum�Cognitive� Abilities.”��Journal of Applied Psychology�99� (2014),�pp.�547–63.
10.68� Adler,�A.B.,�et�al.� “Mental�Skills�Train- ing�with�Basic�Com- bat�Training�Soldiers:� A�Group-Randomized� Trial.”�Journal of Applied Psychology�100� (2015),�pp.�1752–64.�
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CHAPTER 11 Teams: Characteristics and Diversity
CHAPTER 12 Teams: Processes and Communication
CHAPTER 13 Leadership: Power and Negotiation
CHAPTER 14 Leadership: Styles and Behaviors
GROUP MECHANISMS
P A R T
4
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11
LEARNING GOALS
11.1 What are the five general team types and their defining characteristics? 11.2 What are the three general types of team interdependence? 11.3 What factors are involved in team composition? 11.4 What are the types of team diversity, and how do they influence team functioning? 11.5 How do team characteristics influence team effectiveness? 11.6 How can team compensation be used to manage team effectiveness?
After reading this chapter, you should be able to answer the following questions:
Teams: Characteristics and Diversity
INDIVIDUAL OUTCOMES
INDIVIDUAL MECHANISMS
INDIVIDUAL CHARACTERISTICS
ORGANIZATIONAL MECHANISMS
Organizational Culture
Organizational Structure
Teams: Processes &
Communication
Motivation
Trust, Justice, & Ethics
Learning & Decision Making
Stress
Leadership: Power &
Negotiation
Job Satisfaction
Leadership: Styles &
Behaviors
Organizational Commitment
Job Performance
GROUP MECHANISMS
Ability
Personality & Cultural Values
Teams: Characteristics &
Diversity
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W hich grocery store chain comes to mind when you think of high quality natural and organic foods? Chances are the answer to this question is Whole
Foods. Founded in 1980, Whole Foods is now a Fortune 500 company, with sales of nearly $15 billion generated from its 460 stores and 87,000 employees. Even if there’s not a Whole Foods market located near you, or you could care less about whether your food has hydrogenated fats or artificial colors and preservatives, you may be familiar with the company because of accolades and coverage from news and business publications. As examples, the com- pany has been named to Fortune’s list of the “100 Best Companies to Work For” each year since the list’s inception in 1998. It’s also one of Fortune’s “World’s Most Admired Companies,” and has appeared on Newsweek’s list of “Top Green Companies in the U.S.,” and Forbes’ list of “100 Most Trustworthy Companies in America.”
So, what accounts for Whole Foods’ tremendous growth and reputation? To sum it up in one word, the answer may be “teams.” The original idea behind Whole Foods was that the world was ready for a natural foods supermarket. However, the company’s success has been driven largely by a strong
set of values that are enacted through teams and support- ive team practices. The company believes that teams not only result in the type of collective learning and intelligence that promotes incremental progress, but also that teams reinforce a sense of community and dedication to the com- pany, customers, and other stakeholders in society.
Although many companies claim that they value and rely on teams, Whole Foods’ belief in teams is all-encompassing. Each store is structured around 8 to 10 teams, and because these teams are largely self-managed, they are teams in the true sense of the word. Team members not only work together to carry out the responsibilities of their depart- ment, but they also meet regularly to discuss issues, make decisions, and solve problems. Team members are also given feedback about how well their team is performing relative to historical standards and to other teams, and their compensation is tied to the performance of their team as well. Because the fate of team members is shared at Whole Foods, employees are motivated to work cooperatively, and this maximizes the chance that the interests of everyone are satisfied.
WHOLE FOODS
©Brooks Kraft/Getty Images
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T E A M C H A R AC T E R I S T I C S A N D D I V E R S I T Y
The topic of teams is likely familiar to almost anyone who might be reading this book. In fact, you’ve probably had firsthand experience with several different types of teams at different points in your life. As an example, most of you have played a team sport or two (yes, playing soccer in gym class counts). Most of you have also worked in student teams to complete projects or assign- ments for courses you’ve taken. Or perhaps you’ve worked closely with a small group of people to accomplish a task that was important to you—planning an event, raising money for a charity, or starting and running a small cash business. Finally, some of you have been members of organi- zational teams responsible for making a product, providing a service, or generating recommenda- tions for solving company problems.
But what exactly is a team, and what is it that makes a team more than a “group”? A team consists of two or more people who work interdependently over some time period to accomplish common goals related to some task-oriented purpose.1 You can think of teams as a special type of group, where a group is just a collection of two or more people. Teams are special for two reasons. First, the interactions among members within teams revolve around a deeper dependence on one another than the interactions within groups. Second, the interactions within teams occur with a specific task-related purpose in mind. Although the members of a friendship group may engage in small talk or in-depth conversations on a frequent basis, the members of a team depend on one another for critical information, materials, and actions that are needed to accomplish goals related to their purpose for being together.
The use of teams in today’s organizations is widespread. National surveys indicate that teams are used in the majority of organizations in the United States, regardless of whether the organiza- tion is large or small.2 In fact, some researchers suggest that almost all major U.S. companies are currently using teams or planning to implement them, and that up to 50 percent of all employees in the United States work in a team as part of their job.3 Thus, whereas the use of teams was lim- ited to pioneers such as Procter & Gamble in the 1960s, teams are currently used in all types of industries to accomplish all the types of work necessary to make organizations run effectively.4
Why have teams become so widespread? The most obvious reason is that the nature of today’s work requires them. As work has become more complex, interactions among multiple team members have become more vital. This is because interactions allow the team to pool comple- mentary knowledge and skills. As an example, surgical teams consist of individuals who received specialized training in the activities needed to conduct surgical procedures. The team consists of
A surgical team consists of specialized members who
depend on one another to accomplish tasks that
are both complex and important. Why might you not want to have surgery conducted by a surgical
team that functions like a group?
©Stockbyte/Getty Images
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a surgeon who received training for the procedure in question, an anesthesiologist who received training necessary to manage patient pain, and an operating room nurse who was trained to pro- vide overall care for the patient.
Teams may also be useful to organizations in ways beyond just accomplishing the work itself. For example, one study revealed that problem-solving teams composed primarily of rank-and-file workers could boost productivity in steel mills by devising ways to increase the efficiency of pro- duction lines and quality control processes.5 Although implementing teams often makes sense in settings such as these, for which the nature of the work and work-related problems are complex, teams vary a great deal from one another in terms of their effectiveness. The goal of this chapter, as well as the next, is to help you understand factors that influence team effectiveness. Fortu- nately, there has been over a century of research on this topic that we can refer to in this effort.6
W H AT C H A R AC T E R I S T I C S C A N B E U S E D TO D E S C R I B E T E A M S ?
This is the first of two chapters on teams. This chapter focuses on team characteristics—the task, unit, and member qualities that can be used to describe teams and that combine to make some teams more effective than others. Team characteristics provide a means of categorizing and exam- ining teams, which is important because teams come in so many shapes and sizes. Team char- acteristics play an important role in determining what a team is capable of achieving and may influence the strategies and processes the team uses to reach its goals. As you will see, however, there’s more to understanding team characteristics than meets the eye. Team characteristics such as diversity, for example, have many meanings, and its effect on team functioning and effective- ness depends on what type of diversity you’re concerned with as well as several additional compli- cating factors. Chapter 12 will focus on team processes and communication—the specific actions and behaviors that teams can engage in to achieve synergy. The concepts in that chapter will help explain why some teams are more or less effective than their characteristics would suggest they should be. For now, however, we turn our attention to this question: “What characteristics can be used to describe teams?”
T E A M T Y P E S One way to describe teams is to take advantage of existing taxonomies that place teams into vari- ous types. One such taxonomy is illustrated in Table 11-1. The table illustrates that there are five general types of teams and that each is associated with a number of defining characteristics.7 The most notable characteristics include the team’s purpose, the length of the team’s existence, and the amount of time involvement the team requires of its individual members. The sections to fol- low review these types of teams in turn.
WORK TEAMS Work teams are designed to be relatively permanent. Their purpose is to produce goods or provide services, and they generally require a full-time commitment from their members. As an example of a work team, consider how cars and trucks are manufactured at Toyota.8 Teams are composed of four to eight members who do the physical work, and a leader who supports the team and coordinates with other teams. Although the teams are responsible for the work involved in the assembly of the vehicles, they are also responsible for quality control and developing ideas for improvements in the production process. Team members inspect each other’s work, and when they see a problem, they stop the line until they are able to resolve the problem.
MANAGEMENT TEAMS Management teams are similar to work teams in that they are designed to be relatively permanent; however, they are also distinct in a number of important ways. Whereas work teams focus on the accomplishment of core operational-level production and service tasks, management teams participate in managerial-level tasks that affect the entire organization. Spe- cifically, management teams are responsible for coordinating the activities of organizational
11.1 What are the five general team types and their defin- ing characteristics?
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TABLE 11-1 Types of Teams
TYPE OF TEAM PURPOSE AND ACTIVITIES
LIFE SPAN MEMBER INVOLVEMENT
SPECIFIC EXAMPLES
Work team Produce goods or provide services.
Long High Self-managed work team Production team Maintenance team Sales team
Management team
Integrate activities of subunits across busi- ness functions.
Long Moderate Top management team
Parallel team Provide recommenda- tions and resolve issues.
Varies Low Quality circle Advisory council Committee
Project team Produce a one-time output (product, ser- vice, plan, design, etc.).
Varies Varies Product design team Research group Planning team
Action team Perform complex tasks that vary in duration and take place in highly vis- ible or challenging circumstances.
Varies Varies Surgical team Musical group Expedition team Sports team
Sources: S.G. Cohen and D.E. Bailey, “What Makes Teams Work: Group Effectiveness Research from the Shop Floor to the Executive Suite,” Journal of Management 27 (1997), pp. 239–90; and E. Sundstrom, K.P. De Meuse, and D. Futrell, “Work Teams: Applications and Effectiveness.” American Psychologist 45 (1990), pp. 120–33.
subunits—typically departments or functional areas—to help the organization achieve its long-term goals. Top management teams, for example, consist of senior-level executives who meet to make decisions about the strategic direction of the organization. It may also be worth mentioning that because members of management teams are typically heads of departments, their commitment to the management team is offset somewhat by the responsibilities they have in leading their unit.
PARALLEL TEAMS Parallel teams are composed of mem- bers from various jobs who provide recommendations to managers about important issues that run “parallel” to the organization’s produc- tion processes.9 Parallel teams require only part-time commit- ment from members, and they can be permanent or tempo- rary, depending on their aim. Quality circles, for example, consist of individuals who nor- mally perform core produc- tion tasks, but who also meet
A Toyota work team is responsible for vehicle
assembly and quality control.
©Toru Yamanaka/Getty Images
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OB AT THE BOOKSTORE INCLUSION by Jennifer Brown (Charleston, SC: Advantage, 2016).
People may not be any quicker to address an injustice or an inequity than they were years ago, but with tools such as Facebook, Twitter, Tumblr, Instagram, Snapchat, mobile-phone cameras, and blogs, a broader community can be reached, and inequity becomes harder to hide or ignore.
With those words, author Jennifer Brown provides one of many rea- sons why organizations need to change their approach to managing a diverse workforce. Brown argues that diversity is often uncomfort- able for people to talk about, and so rather than trying to find real solutions to diversity problems, organizations have been somewhat dismissive. For example, organizations that do not have many African American or Hispanic employees often assert that the situation is out of their control because there aren’t enough applicants from those groups in the hiring pipeline. The author points out that society has become more aware and less tolerant of bias and ineq- uity, and that with the advent of social media, organizations will find it increasingly difficult to remain unresponsive to issues that were once cloaked. Brown also notes that employees tend to with- hold discretionary effort and be less committed if they don’t feel welcomed, valued, respected, and heard. Thus, the potential value
of having a diverse workforce can only be realized through efforts that help those from under- represented groups feel that it is safe to bring more of their true selves to work.
Brown’s book is a call for organizations to become much more proactive and innovative in their efforts to manage diversity. Implementing training programs, such as those that help employees understand unconscious biases and stereotypes, may be a starting point, however, Brown suggests that real success depends on an organization’s willingness to make changes that are more compre- hensive. To this end, organizations have begun to implement employee resource groups, or ERGs. Comprised of employees from underrepresented groups and their allies, ERGs serve to provide support and guidance to members of their communities who may be experiencing diversity- or inclusion-related problems. Additionally, EGRs provide input and potential solutions to organiza- tions that seek to address the challenges of creating an inclusive environment where employees feel they have the space to fully contribute and thrive.
©Roberts Publishing Services
regularly with individuals from other work groups to identify production-related problems and opportunities for improvement. As an example of a more temporary parallel team, committees often form to deal with unique issues or issues that arise only periodically. Examples of issues that can spur the creation of committees include changes to work procedures, purchases of new equipment or services, and nonroutine hiring. For an example of a parallel team used to address important organizational issues, see our OB at the Bookstore feature.
PROJECT TEAMS Project teams are formed to take on “one-time” tasks that are generally com- plex and require a lot of input from members with different types of training and expertise.10 Although project teams exist only as long as it takes to finish a project, some projects are quite complex and can take years to complete. Members of some project teams work full-time, whereas other teams demand only a part-time commitment. A planning team comprised of engineers, architects, designers, and builders, charged with designing a suburban town center, might work together full-time for a year or more. In contrast, the engineers and artists who constitute a design
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team responsible for creating an elec- tric toothbrush might work together for a month on the project while also serving on other project teams.
ACTION TEAMS Action teams per- form tasks that are normally limited in duration. However, those tasks are quite complex and take place in con- texts that are either highly visible to an audience or of a highly challenging nature.11 Some types of action teams work together for an extended period of time. For example, sports teams remain intact for at least one season, and musical groups like the Rolling Stones, ZZ Top, Aerosmith, Kiss, and
AC/DC sometimes stick together for decades. Other types of action teams stay together only as long as the task takes to complete. Surgical teams and aircraft flight crews may only work together as a unit for a single two-hour surgery or flight.
SUMMARY So how easy is it to classify teams into one of the types summarized in Figure 11-1? Well, it turns out that teams often fit into more than one category. As an example, consider the teams at Pixar, the company that has produced many computer-animated hit films, such as Toy Story, Monsters Inc., Finding Nemo, Cars, Wall-E, Up, Brave, Monsters University, Inside Out, and Finding Dory. On the one hand, because the key members of Pixar teams have mostly remained together for each film the company has produced, it might seem like Pixar uses work teams.12 On the other hand, because the creation of each film can be viewed as a project, and because mem- bers are likely involved in multiple ongoing projects, it might seem reasonable to say that Pixar uses project teams. It’s probably most appropriate to say that at Pixar, teams have characteristics of both work teams and project teams.
VA R I AT I O N S W I T H I N T E A M T Y P E S Even knowing whether a team is a project team, an action team, or some other type of team doesn’t tell you the whole story. In fact, there are important variations within those categories that are needed to understand a team’s functioning.13 As one example, teams can vary with respect to the degree to which they have autonomy and are self-managed.14 If you’ve ever been on a team where members have a great deal of freedom to work together to establish their own goals, procedures, roles, and member- ship, you’ve worked on a team where the level of autonomy and self-management is high. You may also have worked on a team where the level of autonomy and self-management is low. In these teams, there are strict rules regarding goals, procedures, and roles, and team leaders or managers make most of the decisions regarding management of the team with respect to membership. Research
The Australian Band AC/ DC, which was formed in
1973, is an example of an action team that has stayed
together for an extended period of time.
©Kevin Mazur/Getty Images
FIGURE 11-1 Types of Teams
Team Types
• Work teams • Management teams • Parallel teams • Project teams • Action teams
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has shown that although peo- ple generally prefer working in teams where the level of auton- omy and self-management is high, the appropriate level of self-management with regard to overall team effectiveness may depend on a variety of fac- tors.15 For example, researchers have concluded that high lev- els of self-management may be most advantageous for teams where team members’ have high levels of team-relevant knowledge obtained from out- side experts and others in their social networks.16
Another way that teams can vary relates to how the members typically communicate with each other. Virtual teams are teams in which the members are geographically dispersed, and interde- pendent activity occurs through electronic communications—primarily e-mail, instant messaging, group calendars, web conferencing, social media, and other meeting tools.17 Although commu- nications and group networking software is far from perfect, it has advanced to the point that it’s possible for teams doing all sorts of work to function virtually, and it’s also true that many teams do at least some of their work virtually even if the members are colocated. In fact, there has been an 800 percent increase in the number of virtual employees over the last decade or so, and it’s likely that there are tens of millions of virtual teams operating today.18 Companies such as Con Edison, New York’s giant electric and gas utility, have invested significant resources in tech- nology and training to help these teams function and perform more effectively.19 The same is true at IBM, where at least 40 percent of the employees work virtually.20 At TRW, one of the world’s largest automotive suppliers, virtual teams provide an efficient way to accomplish work on projects when members are geographically separated.21 In fact, many companies in high-tech industries are leveraging virtual teams to make continuous progress on work tasks without mem- bers having to work 24/7. For example, Logitech, the Swiss company that makes things such as computer mice and keyboards, universal remotes for home entertainment systems, and gaming controllers, attributes its success to teams of designers and engineers who are located in different places around the world.22 Although you might be inclined to believe that time-zone differences would be a hindrance to this sort of team, Logitech turned it into a competitive advantage by let- ting the work follow the sun.23 Specifically, work at Logitech is accomplished continuously because members of a team who have finished their workday in one country electronically hand off the work to team members in another country who have just arrived at the office. Because these electronic hand-offs occur continuously, product development and other work needed to bring innovative products to the market can be completed much more quickly.
In addition to varying in their “virtuality,” teams of any type can differ in the amount of experi- ence they have working together. One way to understand this point is to consider what occurs in teams at different stages of their development as they progress from a newly formed team to one that’s well-established. According to the most well-known theory, teams go through a progression of five stages shown in the top panel of Figure 11-2.24 In the first stage, called forming, members orient themselves by trying to understand their boundaries in the team. Members try to get a feel for what is expected of them, what types of behaviors are out of bounds, and who’s in charge. In the next stage, called storming, members remain committed to ideas they bring with them to the team. This initial unwillingness to accommodate others’ ideas triggers conflict that negatively affects some interpersonal relationships and harms the team’s progress. During the next stage, norming, members realize that they need to work together to accomplish team goals, and conse- quently, they begin to cooperate with one another. Feelings of solidarity develop as members work toward team goals. Over time, norms and expectations develop regarding what different members
The Pixar team, shown here at the Cannes Film Festival, has characteristics of both work teams and project teams. Trying to characterize this team is even more complicated when you consider that key members are involved in the management of the company, and their involvement in the films runs parallel to these other responsibilities.
©Venturelli/Getty Images
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are responsible for doing. In the fourth stage of team development, which is called performing, members are comfortable working within their roles, and the team makes progress toward goals. Finally, because the life span of many teams is limited, there’s a stage called adjourning. In this stage, members experience anxiety and other emotions as they disengage and ultimately separate from the team.
But does this sequence of forming, storming, norming, performing, and adjourning apply to the development of all types of teams? Chances are that you’ve had some experience with teams that would lead you to answer this question with an emphatic “no.” In fact, although this theory of group development is intuitively appealing and identifies things that may occur as teams gain experience working together, there are factors in work organizations that can significantly alter what occurs during a team’s life.25 One situation in which this developmental sequence is less applicable is when teams are formed with clear expectations regarding what’s expected from the team and its members. With many action teams, for example, there are established rules and standard operating procedures that guide team members’ behaviors and their interactions with one another. As a specific example, an aircraft flight crew doesn’t have to go through the form- ing, storming, norming, and performing stages to figure out that the pilot flies the plane and the flight attendant serves the beverages. As another example, though the adjourning stage only hap- pens once for each type of team, the implications are likely to be more significant for team types with longer life spans that require high member involvement. Dissolving a work team that’s been together for four years is likely to trigger greater anxiety and stronger emotions among members than a situation in which a committee that meets briefly once a month for a year is disbanded.
Another situation in which the development sequence is less applicable may be in certain types of project teams that follow a pattern of development called punctuated equilibrium.26 This sequence appears in the bottom panel of Figure 11-2. At the initial team meeting, members make assumptions and establish a pattern of behavior that lasts for the first half of its life. That pattern
FIGURE 11-2 Two Models of Team Development
Some teams develop in a predictable sequence . . .
. . . whereas many develop in a less linear fashion.
Forming and Pattern
Creation Inertia
Process Revision
Inertia
Punctuated Equilibrium
Time
Time TimeMidpoint
Forming Storming Norming Performing Adjourning
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of behavior becomes a matter of habit for members and creates an inertia that continues until roughly the midway point of the project. Then something remarkable happens: Members realize that they have to change their approach to the task to complete it on time. Teams that take this opportunity to plan a new approach during this transition tend to do well, and the new framework dominates their behavior until task completion. However, teams that don’t take the opportunity to change their approach tend to persist with their original pattern and may “go down with a sinking ship.” Interestingly, the realization that things have to change at the midway point of task comple- tion occurs regardless of the time frame of the project.
T E A M I N T E R D E P E N D E N C E In addition to taxonomies of team types, we can describe teams by talking about the interdepen- dence that governs connections among team members. In a general sense, you can think of inter- dependence as the way in which the members of a team are linked to one another. That linkage between members is most often thought of in terms of the interactions that take place as the team accomplishes its work. However, linkages among team members also exist with respect to their goals and rewards. In fact, you can find out where your student project team stands on different aspects of interdependence using our OB Assessments feature.
TASK INTERDEPENDENCE Task interdependence refers to the degree to which team mem- bers interact with and rely on other team members for the information, materials, and resources needed to accomplish work for the team.27 As Figure 11-3 illustrates, there are four primary types of task interdependence, and each requires a different degree of interaction and coordination.28
The type of task interdependence with the lowest degree of required coordination is pooled interdependence.29 With this type of interdependence, group members complete their work assign- ments independently, and then this work is simply “piled up” to represent the group’s output. Consider what pooled interdependence would be like on a fishing boat. Each person would bait a pole, drop the baited line into the water, reel the fish in, remove the fish from the hook, and, finally, throw the fish into a tank filled with ice and other fish. At the end of the day, the boat’s production would be the total weight of the fish that were caught.
The next type of task interdependence is called sequential interdependence.30 With this type of interdependence, different tasks are done in a prescribed order, and the group is structured such that the members specialize in these tasks. Although members in groups with sequential interdependence interact to carry out their work, the interaction occurs only between members who perform tasks that are next to each other in the sequence. Moreover, the member performing the task in the latter part of the sequence depends on the member performing the task in the earlier part of the sequence, but not the other way around. The classic assembly line in manufacturing contexts provides an excel- lent example of this type of interdependence. In this context, an employee attaches a part to the unit being built, and once this is accomplished, the unit moves on to another employee who adds another part. The process typically ends with the unit being inspected and then packaged for shipping.
Reciprocal interdependence is the next type of task interdependence.31 Similar to sequential interdependence, members are specialized to perform specific tasks. However, instead of a strict sequence of activities, members interact with a subset of other members to complete the team’s work. To understand reciprocal interdependence, consider a team of people who are involved in a business that designs custom homes for wealthy clients. After meeting with a client, the salesper- son would provide general criteria, structural and aesthetic details, and some rough sketches to an architect who would work up some initial plans and elevations. The architect then would submit the initial plans to the salesperson, who would review the plans with the customer. Typically, the plans need to be revised by the architect several times, and during this process, customers have questions and requests that require the architect to consult with other members of the team. For example, the architect and structural engineer may have to meet to decide where to locate sup- port beams and load-bearing walls. The architect and construction supervisor might also have to meet to discuss revisions to a design feature that turns out to be too costly. As a final example, the salesperson might have to meet with the designers to assist the customer in the selection of additional features, materials, and colors, which would then need to be included in a revision of the plan by the architect.
11.2 What are the three general types of team interdependence?
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OB ASSESSMENTS
SCORING AND INTERPRETATION Task Interdependence: Sum up items 1–3. _______ Goal Interdependence: Sum up items 4–6. _______ Outcome Interdependence: Sum up items 7–9. _______
If you scored 14 or above, then your team may be above average on a particular dimension. If you scored 13 or below, then your team may be below average on a particular dimension.
INTERDEPENDENCE How interdependent is your student project team? This assessment is designed to measure three types of interdependence: task interdependence, goal interdependence, and outcome interdepen- dence. Read each of the following questions with a relevant student team in mind. Answer each question using the response scale provided. Then follow the instructions below to score yourself. (Instructors: Assessments on deep-level diversity, team role tendencies, and team viability can be found in the PowerPoints in the Connect Library’s Instructor Resources and in the Connect assignments for this chapter.)
1 TOTALLY
DISAGREE
2 DISAGREE
3 SOMEWHAT DISAGREE
4 NEUTRAL
5 SOMEWHAT
AGREE
6 AGREE
7 TOTALLY AGREE
1. The responsibilities of members of my team are interconnected.
2. I cannot be an effective team member unless my teammates provide information or resources to me.
3. My teammates cannot be effective in their tasks unless I provide information or resources to them.
4. My team’s goals determine my goals while working in this team
5. I think about my team’s goals when deciding how to prioritize my work activities.
6. The goals of my team strongly influence my teammates’ goals and priorities.
7. I receive rewards that are determined based on how well my team does.
8. My performance evaluations are a function of the effectiveness of my team.
9. The feedback I get about my performance is based largely on my team’s performance.
Source: From M.A. Campion, E.M. Papper, and G.J. Medsker, “Relations between Work Team Characteristics and Effec- tiveness: A Replication and Extension,” Personnel Psychology 49 (1996), pp. 429–52. John Wiley & Sons, Inc.
Finally, comprehensive interdependence requires the highest level of interaction and coordina- tion among members as they try to accomplish work.32 In groups with comprehensive interde- pendence, members have a great deal of discretion in terms of what they do and with whom they interact in the course of the collaboration involved in accomplishing the team’s work. Teams at IDEO, arguably the world’s most successful product design firm, function with comprehensive interdependence. These teams are composed of individuals from very diverse backgrounds, and
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FIGURE 11-3 Task Interdependence and Coordination Requirements
Pooled Interdependence
Sequential Interdependence
Reciprocal Interdependence
Comprehensive Interdependence
D e
g re
e o
f C
o o
rd in
a tio
n R
e q
u ir
e d
Member 3
Member 1
Member 1
Member 2
Member 3
Member 3
Member 3
Member 4
Member 4
Member 2
Member 2
Member 1
Member 1
Member 4
Member 2
Member 4
Output
Output
Output
Output
they meet as a team quite often to share knowledge and ideas to solve problems related to their design projects.33
It’s important to note that there’s no one right way to design teams with respect to task inter- dependence. However, it’s also important to recognize the trade-offs associated with the different types. On the one hand, as the level of task interdependence increases, members must spend increasing amounts of time communicating and coordinating with other members to complete tasks. This type of coordination can result in decreases in productivity, which is the ratio of work completed per the amount of time worked. On the other hand, increases in task interde- pendence increase the ability of the team to adapt to new situations. The more members interact
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and communicate with other members, the more likely it is that the team will be able to devise solu- tions to novel problems it may face.
GOAL INTERDEPENDENCE In addition to being linked to one another by task activities, members may be linked by their goals.34 A high degree of goal interdependence exists when team members have a shared vision of the team’s goal and align their individual goals with that vision as a result.35 To understand the power of goal inter- dependence, visualize a small boat with several people on board, each with a paddle.36 If each per-
son on the boat wants to go to the exact same place on the other side of a lake, they will all row in the same direction, and the boat will arrive at the desired location. If, however, each person believes the boat should go someplace different, each person will row in a different direction, and the boat will have major problems getting anywhere. In most team contexts, there are asymmetries in the goals of individual team members that interfere with the pursuit of team goals, and what makes managing this situation difficult is that team members often don’t become aware of the incompatibilities until it’s too late.37
So how do you create high levels of goal interdependence? One thing to do would be to ensure that the team has a formalized mission statement that members buy into. Mission statements can take a variety of forms, but good ones clearly describe what the team is trying to accomplish in a way that creates a sense of commitment and urgency among team members.38 Mission state- ments can come directly from the organization or leaders, but in many circumstances, it makes more sense for teams to go through the process of developing their own mission statements. This process not only helps members identify important team goals and the actions the team needs to take to achieve these goals, but it also increases feelings of ownership toward the mission state- ment itself. Table 11-2 describes a set of steps that a team could take to develop their own mission statements.39
Although you might believe that the mission for some team tasks is very obvious, all too often this isn’t the case. In student teams, for example, you might expect that the obvious goal in the minds of the team members would be to learn the course material. However, it’s typically the case that students come to a team with individual goals that are surprisingly different, and they may never realize their goals are different because they don’t talk about them. Some students might be more interested in “just getting by” with a passing grade because they already have a job and just need to graduate. Other students might want to do well in the course, but are more concerned with maintaining balance with the demands of their lives outside of school. Finally, other students might be focused solely on their grades, perhaps because they want to get into a prestigious graduate school in an unrelated discipline. Of course, the problem here is that each of these goals is associated with a different approach to working in the team. Students who want to learn the course material will work hard on the team assignments and will want to spend extra time discussing assignment-related issues with teammates, students who just want to get by will do the minimum amount of work, students who want to maintain their work–life balance will look for the most efficient way to do things, and students who are focused on their grades would be willing to take shortcuts that might inhibit learning. Although trying to reach a consensus on a team mis- sion may not be easy in a situation in which the members have goals that vary along these lines, researchers have found that teams of students experience significantly greater effectiveness if they invest time and effort doing so soon after the team first forms.40
OUTCOME INTERDEPENDENCE The final type of interdependence relates to how members are linked to one another in terms of the feedback and outcomes they receive as a consequence of working in the team.41 A high degree of outcome interdependence exists when team members share in the rewards that the team earns, with reward examples including pay, bonuses, formal feedback and recognition, pats on the back, extra time off, and continued team survival. Of course, because team achievement typically depends on the performance of each team member, high outcome
Face-to-face team meet- ings that involve compre- hensive interdependence
can consume a lot of time, yet these meetings are an
important part of accom- plishing work that requires
collaboration.
©Triangle Images/Getty Images
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For a similar take on how to develop mission statements, see P.S. MacMillan, The Performance Factor: Unlocking the Secrets of Teamwork, Nashville, Broadman & Holman Publishers, 2001, pp. 51–53.
TABLE 11-2 The Mission Statement Development Process
Steps in Mission Statement Development
1. The team should meet together in a room or virtually. Allow enough time (at least 3–4 hours) and avoid interruptions.
2. The team leader (or facilitator) should describe the purpose of a mission statement and what it should look like. Emphasize that mission statements should include action verbs and be relatively short (probably no more than four sentences).
3. The team leader (or facilitator) should clarify the team’s core responsibilities. 4. The team should brainstorm to identify themes to include in the mission statement. 5. Members draft preliminary mission statements. If the team is large enough, form sub-
groups to create first drafts. 6. Members (or subgroups) should share the first drafts with one another. 7. The team should identify the best ideas, and integrate them into a single mission
statement. 8. The mission statement should be evaluated using the following criteria:
Focus—Does the mission statement articulate a purpose that is sufficiently clear and focused? Meaningfulness—Does the mission statement reflect a purpose that is meaningful to the members, and will accomplishing the purpose result in benefits that are important to the members? Realistic—Does the mission statement reflect something that the members believe they can actually achieve? Challenge—Does the mission statement convey a sense of challenge and urgency to members?
9. The team should identify weak areas of the mission statement relative to the four criteria in step 8 and revise accordingly.
10. Return to step 7 and continue the process until there’s consensus that the mission state- ment inspires commitment among members to the same common purpose.
interdependence also implies that team members depend on the performance of other team mem- bers for the rewards that they receive. In contrast, low outcome interdependence exists in teams in which individual members receive rewards and punishments on the basis of their own individual performance, without regard to the performance of the team. Research on project teams involved in consulting, financial planning, and research and development has shown that higher levels of outcome interdependence increase the amount of information shared among members, which promotes learning, and, ultimately, team performance.42 As we discuss in the Application section at the end of this chapter, the way a team is designed with respect to outcome interdependence also has important implications for the level of cooperation and motivation in the team. See our OB on Screen feature for an extreme example of outcome interdependence.
T E A M C O M P O S I T I O N You probably already have a sense that team effectiveness hinges on team composition—or the mix of people who make up the team. If you’ve been a member of a particularly effective team, you may have noticed that the team seemed to have the right mix of knowledge, skills, abilities, and personalities. Team members were not only capable of performing their role responsibilities effectively, but they also cooperated and got along fairly well together. In this section, we identify the most important characteristics to consider in team composition, and we describe how these
11.3 What factors are involved in team composition?
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OB ON SCREEN ARRIVAL
I have something I need you to translate for me.
With those words, Colonel G.T. Weber (Forest Whitaker) initiates the process of recruiting expert linguist, Dr. Louise Banks (Amy Adams), for a very important team, in the movie Arrival (Dir. Denis Villeneuve, 21 Laps Entertainment, 2016). You see, 12 extraterrestrial vessels touch down in loca- tions across the globe—Australia, the Black Sea, China, Denmark, Japan, Pakistan, Siberia, Sierra- Leone, Sudan, the United Kingdom, Venezuela, and Montana—and the government of each location establishes a team to answer the all-important question: What are the intentions of the alien passen- gers? Dr. Banks joins Colonel Weber’s Montana-based team, and applies her expertise and unique insights to understand the alien language so that this question can be answered. There’s a lot riding on the team’s success. After all, the aliens could possess the capability and will to destroy the earth!
Although the film centers on the role played by Dr. Banks, it also depicts a team with high levels of task, goal, and outcome interdependence. Technicians operate various pieces of equipment used by engineers and scientists from different fields who collaborate to interpret the meaning of the complex symbols used by the aliens to communicate. Members of the team share the same goal of trying to figure out what’s going on. And of course, members of the team share the same fate if they fail to achieve this goal and the aliens’ intentions are less than friendly. The film also illustrates that interdependence does not only occur within teams, but it also occurs between teams as well. Initially, teams from the 12 sites share what they learn, so that, together, they can work to resolve the situation. Over time, disagreements among the teams begin to surface, and the teams stop com- municating with one another. However, because the aliens are in contact with each other, it’s clear to all that an action taken by one team has consequences to all the teams. For example, when it becomes evident that the Chinese team is preparing to attack the aliens, members of Weber’s team argue for a preemptive strike against the aliens in anticipation of their potential retaliation.
©Atlaspix/Alamy
elements combine to influence team functioning and effectiveness. As shown in Figure 11-4, five aspects of team composition are crucial: roles, ability, personality, diversity, and team size.
MEMBER ROLES A role is defined as a pattern of behavior that a person is expected to dis- play in a given context.43 In a team setting, there are a variety of roles that members can take or develop in the course of interacting with one another, and depending on the specific situation,
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FIGURE 11-4 Five Aspects of Team Composition
Team Composition
Member Roles
Member Personality
Team Diversity
Team Size
Member Ability
the presence or absence of members who possess these roles may have a strong impact on team effectiveness.44 One obvious way that roles can be distinguished is by considering the specific sets of task-focused activities that define what the individual members are expected to do for their team. For example, a soccer team consists of members who play positions, such as forward, midfielder, defender, and goal keeper, that have unique responsibilities on the field. As another example, top management teams often include a chief financial officer, a chief operations officer, and a chief marketing officer. These team members may work together to develop and implement an appropriate firm strategy, but they also have unique functional responsibilities related to day- to-day operations of the firm.
Another way to distinguish roles is to consider what leaders and members do. In leader–staff teams, the leader makes decisions for the team and provides direction and control over members who perform assigned tasks, so this distinction makes sense in that the responsibilities of the leader and the rest of the team are distinct.45 Typically, however, team members have some lati- tude with respect to the behaviors they exhibit. In these situations, team roles can be described in terms of categories that are more general than the task-focused roles described earlier. By general, we mean that these roles can apply to many different types of teams. As shown in Table 11-3, these general roles include team task roles, team-building roles, and individualistic roles.46
Team task roles refer to behaviors that directly facilitate the accomplishment of team tasks. Examples include the orienter who establishes the direction for the team, the devil’s advocate who offers constructive challenges to the team’s status quo, and the energizer who motivates team members to work harder toward team goals. As you may have realized, the importance of specific task-oriented roles depends on the nature of the work in which the team is involved. The orienter role may be particularly important in teams that have autonomy over how to accomplish their work. The devil’s advocate role may be particularly important in team contexts in which decisions are “high stakes” in nature. Finally, the energizer role may be most important in team contexts in which the work is important but not intrinsically motivating.
In contrast to task-oriented roles, team-building roles refer to behaviors that influence the quality of the team’s social climate. For example, a team member who tends to be helpful to other team members is fulfilling an important team-building role. Indeed, it has been shown that a single team member who goes the extra mile in this way inspires greater levels of participation from other mem- bers of the team.47 Similarly, a member who lightens things up during a contentious team meeting by doing something humorous is also fulfilling a team-building role. The simple act of telling a joke may foster additional humor and, in turn, a positive climate that enhances team functioning and performance.48 Specific examples of team-building roles include the harmonizer who steps in to
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resolve differences among teammates, the encourager who praises the work of teammates, and the compromiser who helps the team see alternative solutions that teammates can accept. In sum, and as you may have gathered as you read these examples, the presence of members who take on team- building roles helps their teams manage conflicts that could hinder team effectiveness.
Finally, whereas task roles and team-building roles focus on activities that benefit the team, individualistic roles reflect behaviors that benefit the individual at the expense of the team. For example, the aggressor “puts down” or deflates fellow teammates. The recognition seeker takes credit for team successes. The dominator manipulates teammates to acquire control and power. If you’ve ever had an experience in a team in which members took on individualistic roles, you probably real- ize just how damaging they can be to the team. Individualistic role behaviors foster negative feelings among team members, which serve to hinder a team’s ability to function and perform effectively.49
MEMBER ABILITY Team members possess a wide variety of abilities (see Chapter 10 on ability for more discussion of such issues). Depending on the nature of the tasks involved in the team’s work, some of these may be important to consider in team design. For example, for teams involved in physical work, relevant physical abilities will be important to take into account. Consider the types of abilities that are required of pit crew members in stock car racing, where margins of victory can be one-tenth of a second. When a car pulls into pit row, crew members need to leap over the pit wall and lift heavy tires, jacks, and other equipment to get the race car back on the
TABLE 11-3 Team and Individualistic Roles
TEAM TASK ROLES DESCRIPTION
Initiator-contributor Proposes new ideas
Coordinator Tries to coordinate activities among team members
Orienter Determines the direction of the team’s discussion
Devil’s advocate Offers challenges to the team’s status quo
Energizer Motivates the team to strive to do better
Procedural-technician Performs routine tasks needed to keep progress moving
TEAM-BUILDING ROLES DESCRIPTION
Encourager Praises the contributions of other team members
Harmonizer Mediates differences between group members
Compromiser Attempts to find the halfway point to end conflict
Gatekeeper-expediter Encourages participation from teammates
Standard setter Expresses goals for the team to achieve
Follower Accepts the ideas of teammates
INDIVIDUALISTIC ROLES DESCRIPTION
Aggressor Deflates teammates, expresses disapproval with hostility
Blocker Acts stubbornly resistant and disagrees beyond reason
Recognition seeker Brags and calls attention to himself or herself
Self-confessor Discloses personal opinions inappropriately
Slacker Acts cynically, or nonchalantly, or goofs off
Dominator Manipulates team members for personal control
Source: Adapted from K. Benne and P. Sheats, “Functional Roles of Group Members,” Journal of Social Issues 4 (1948), pp. 41–49.
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track—ideally in about 14 seconds. In this setting, flexibility, cardiovascular endurance, and explo- sive strength are required, and in fact, racing teams have hired professional trainers and even built gyms to improve these abilities of their pit crew members.50
It’s also important to take cognitive abilities into account when designing teams. General cog- nitive ability is important to many different types of teams. In general, smarter teams perform better because teamwork tends to be quite complex.51 Team members not only have to be involved in several different aspects of the team’s task, but they also have to learn how best to combine their individual efforts to accomplish team goals.52 In fact, the more that this type of learning is required, the more important member cognitive ability becomes. For example, research has shown that cognitive ability is more important to teams when team members have to learn from one another to adapt to unexpected changes, compared with contexts in which team members perform their assigned tasks in a routine fashion.53
Of course, not every member needs high levels of these physical or cognitive abilities. If you’ve ever played Trivial Pursuit using teams, you might recall playing against another team in which only one of the team members was smart enough to answer any of the questions correctly. In fact, in tasks with an objectively verifiable best solution, the member who possesses the highest level of the ability relevant to the task will have the most influence on the effectiveness of the team. These types of tasks are called disjunctive tasks.54 You may also recall situations in which it was crucial that everyone on the team possessed the relevant abilities. Returning to the pit crew example, stock cars cannot leave the pit area until all the tires are mounted, and so the length of the pit stop is deter- mined by the physical abilities of the slowest crew member. Tasks like this, for which the team’s per- formance depends on the abilities of the “weakest link,” are called conjunctive tasks. Finally, there are additive tasks, for which the contributions resulting from the abilities of every member “add up” to determine team performance. The amount of money that a Girl Scout troop earns from selling Thin Mints and Samoas is the sum of what each Girl Scout is able to sell on her own.
MEMBER PERSONALITY Team members also possess a wide variety of personality traits (see Chapter 9 on personality and cultural values for more discussion of such issues). These personal- ity traits affect the roles that team members take on,55 the norms that develop on the team,56 and ultimately, how teams function and perform as units.57 For example, the agreeableness of team members has an important influence on team effectiveness.58 Why? Because agreeable people tend to be more cooperative and trusting, and these tendencies promote positive attitudes about the team and smooth interpersonal interactions. Moreover, because agreeable people may be more concerned about their team’s interests than their own, they should work hard on behalf of the team.59 There’s a caveat regarding agreeableness in teams, however. Because agreeable people tend to prefer harmony and cooperation rather than conflict and competition, they may be less apt to speak up and offer constructive criticisms that might help the team improve.60 Thus, if a team is composed of too many highly agreeable members, there’s a chance that the members will behave in a way that enhances harmony of the team at the expense of task accomplishment.61
As another example, team composition in terms of members’ conscientiousness is important to teams.62 After all, almost any team would benefit from having members who tend to be depend- able and work hard to achieve team goals. What might be less obvious to you is the strong negative effect on the team of having even one member who is particularly low on conscientiousness.63 To understand why this is true, consider how you would react to a team member who was not dependable and did not appear to be motivated to work hard toward team goals. If you’re like most people, you would find the situation dissatisfying, and you would consider different ways of deal- ing with it. Some people might try to motivate the person to be more responsible and work harder; others might try to get the person ejected from the team.64 The problem is that these natural reac- tions to a low conscientiousness team member not only divert attention away from accomplishing work responsibilities, but they also can result in some very uncomfortable and time-consuming interpersonal conflicts. Moreover, even if you and the other members of the team work harder to compensate for this person, it would be difficult for your team to perform as effectively as other teams in which all members are more interpersonally responsible and engaged in the team’s work.
Finally, the personality characteristic of extraversion is relevant to team composition.65 People who are extraverted tend to perform more effectively in interpersonal contexts and are more posi- tive and optimistic in general.66 Therefore, it shouldn’t surprise you to read that having extraverted
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team members is generally beneficial to the social climate of the group, as well as to team effec- tiveness in the eyes of supervisors.67 At the same time, however, research has shown that having too many members who are very high on extraversion can hurt the team. The reason for this can be attributed to extraverts’ tendency to be assertive and dominant. As you would expect when there are too many members with these types of tendencies, power struggles and unproductive conflict occur with greater frequency.68
DIVERSITY Another aspect of team composition refers to the degree to which members are different from one another in terms of any attribute that might be used by someone as a basis of categorizing people. We refer to those differences as team diversity.69 Trying to understand the effects of diversity on teams is difficult because there are so many different characteristics that may be used to categorize people. Beyond obvious differences among people in their physical appearance, there can be separation among members in terms of their values and beliefs, variety among members in their knowledge and expertise, and disparity among members in their social status, power, and even their sense of time urgency and the way they like to pace their work.70 Moreover, diversity of team member characteristics may matter more or less depending on the nature of the team and organizational context.71 For example, you might imagine how the dynam- ics in a team consisting of both men and women could vary depending on whether the team is in an organization dominated by men (or women) or whether it’s balanced in terms of the employ- ees’ sex. Finally, there are multiple reasons different types of diversity influence team functioning and effectiveness, and some of these reasons seem contradictory.72
One predominant theory that has been used to explain why diversity has positive effects is called the value in diversity problem-solving approach.73 According to this perspective, diversity in teams is beneficial because it provides for a larger pool of knowledge and perspectives from which a team can draw as it carries out its work.74 Having greater diversity in knowledge per- spectives stimulates the exchange of information, which in turn fosters learning among team members.75 The knowledge that results from this learning is then shared and integrated with the knowledge of other members, ultimately helping the team perform more effectively.76 Research has shown that these benefits of diversity are more likely to occur when the team includes mem- bers who are able and willing to put in the effort necessary to understand and integrate different perspectives.77 Teams that engage in work that’s relatively complex and requires creativity tend to benefit most from diversity, and research on teams that are diverse in terms of many different characteristics related to knowledge and perspectives—ethnicity, expertise, personality, attitudes— supports this idea.78
A theory that’s been used widely to explain why diversity may have detrimental effects on teams is called the similarity-attraction approach.79 According to this perspective, people tend to
11.4 What are the types of team diversity and how do they influence team functioning?
A task that can go only as quickly as the slowest team
member, like a pit stop in a car race, is a conjunctive
task.
©Action Sports Photography/Shutterstock
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be more attracted to others who are perceived as more similar. People also tend to avoid interact- ing with those who are perceived to be dissimilar, to reduce the likelihood of having uncomfortable disagreements. Consistent with this perspective, research has shown that diversity on attributes such as cultural background, race, and attitudes is associated with communication problems and ultimately poor team effectiveness.80
So it appears that there are two different the- ories about diversity effects that are relevant to teams, and each has been supported in research. Which perspective is correct? As it turns out, a key to understanding the impact of team diversity requires that you consider both the general type of diversity and the length of time the team has been in existence.81
Surface-level diversity refers to diversity regarding observable attributes such as race, ethnic- ity, sex, and age.82 Although this type of diversity may have a negative impact on teams early in their existence because of similarity-attraction issues, those negative effects tend to disappear as members become more knowledgeable about one another. In essence, the stereotypes that mem- bers have about one another based on surface differences are replaced with knowledge regarding underlying characteristics that are more relevant to social and task interactions.83
One complication here is that fault lines often occur in diverse groups, whereby informal sub- groups develop based on similarity in surface-level attributes such as gender or other characteris- tics.84 The problem with fault lines is that knowledge and information possessed by one subgroup may not be communicated to other subgroups in a manner that might help the entire team per- form more effectively. In a study of boards of directors, for example, the presence of strong fault lines decreased the amount of discussion that board members had with each other in regards to entrepreneurial issues that could affect their companies.85 Research has shown, however, that the effects of subgroups depend on the type of subgroup, and that detrimental effects of having sub- groups can be offset with training that reinforces the idea that teams may benefit from their diver- sity.86 Leadership or reward practices that reinforce the value of sharing information and promote a strong sense of team identity also help diverse teams perform more effectively.87
Deep-level diversity, in contrast, refers to diversity with respect to attributes that are less easy to observe initially but that can be inferred after more direct experience. Differences in attitudes, values, and personality are good examples of deep-level diversity.88 In contrast to the effects of surface-level diversity, time appears to increase the negative effects of deep-level diversity on team functioning and effectiveness.89 Over time, as team members learn more about one another, differ- ences that relate to underlying values and goals become increasingly apparent. Those differences can therefore create problems among team members that ultimately result in reduced effectiveness.
Fortunately, it appears that the negative effects of deep-level diversity can be managed.90 As an example, diversity in members’ approach to pursing goals has been shown to hinder team func- tioning and effectiveness, but this effect can be reduced if teams are instructed to take the time to reflect on their progress toward goals and their strategies.91 Deep-level diversity has also been shown to have positive effects on team creativity when members are instructed to take the perspec- tive of their teammates.92 As another example, negative effects of deep-level diversity with respect to members’ values have been found to be reduced when team leaders emphasize the teams’ task and provide explicit direction regarding team procedures, standards, roles, and expectations.93 We should also point out, however, that team leaders can also exacerbate problems associated with deep-level diversity. Conflict that results from diversity in members’ values appears to increase in teams with leaders who emphasize things like freedom of expression and participation.94 See our OB Internationally feature for a discussion of the challenges of managing deep-level diversity in teams that include members from different cultures.
We also should mention an important caveat here. Although personality is normally consid- ered a deep-level diversity variable,95 some specific personality types do not function this way.96 In the previous section on personality, for example, we pointed out that though having team
Surface-level diversity can sometimes create issues for teams as they begin their tasks, but such prob- lems usually disappear over time.
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members who are extraverted and agreeable is generally a good thing, problems arise if a team has too many members with these attributes. So whereas diversity on most deep-level characteristics is problematic for teams, this claim does not apply to extraversion and agreeableness, because for these two personality characteristics, teams are likely to benefit from having a mix of members.
TEAM SIZE Two adages are relevant to team size: “the more the merrier” and “too many cooks spoil the pot.” Which statement do you believe is true in terms of how many members to include on a team? The answer, according to the results of one meta-analysis, is that having a greater number of members is beneficial for management and project teams but not for teams engaged in production tasks.97 Management and project teams engage in work that’s complex and knowledge intensive, and these teams therefore benefit from the additional resources and expertise contrib- uted by additional members.98 In contrast, production teams tend to engage in routine tasks that are less complex. Having additional members beyond what’s necessary to accomplish the work tends to result in unnecessary coordination and communication problems. Additional members therefore may be less productive because there’s more socializing, and they feel less accountable for team outcomes.99 Although making a claim about the absolute best team size is impossible, research with undergraduate students concluded that team members tend to be most satisfied with their team when the number of members is between four and five.100 Of course, there are
Businesses are increasingly using teams composed of members from different cultures, and so teams today often possess members who differ from one another in terms of their attitudes, val- ues, ideas, goals, and behaviors. These types of teams, called multicultural teams, can approach problems from several different perspectives, which opens the door to highly innovative solu- tions. Cultural diversity also allows teams to serve a diverse customer base that may differ in terms of culture and nationality.
Unfortunately, the attributes that give multicultural teams these advantages also give them disadvantages. As an example, people from different cultures communicate differently, which can lead to misunderstandings. For example, to people in the United States, the phrase “to table some- thing” means to put it off until later, whereas to people in some European countries, it means dis- cuss it right now. Imagine your reaction if you didn’t know this difference, and you told a team you were leading that you wanted to table something, and then one of your team members started to discuss options and recommendations about the issue. There are differences in the directness of communications as well. Westerners tend to be very direct and to the point, but to people in other countries, such as Japan, this directness may cause embarrassment and a sense of disrespect. There are also cultural differences in decision-making processes. In some cultures, decisions can be made only after careful consideration and reconsideration of all relevant issues, which is much different from the style in other cultures, such as the United States, where decisions are made rather quickly and with less analysis. Although these differences might seem trivial, they often lead to misunderstandings that reduce the willingness of team members to cooperate.
So how can multicultural teams be managed to ensure the advantages outweigh the disadvan- tages? Although there’s no one best way to manage multicultural teams, one proven approach is to encourage team members to take the time to communicate openly with each other about cultural differences and to proactively develop strategies the team can use to accommodate them.
OB INTERNATIONALLY
Sources: J. Brett, K. Behfar, and M.C. Kern, “Managing Multicultural Teams,” Harvard Business Review 84 (November 2006), pp. 84–91; S. Gupta, “Mine the Potential of Multicultural Teams: Mesh Cultural Differences to Enhance Produc- tivity,” HR Magazine (October 2008), pp. 79–84; M. Harris, Cultural Anthropology, 2nd ed. (New York: Harper and Row, 1987); and H.C. Triandis, Culture and Social Behavior (New York: McGraw-Hill, 1994).
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other rules of thumb you can use to keep team size optimal. Jeff Bezos, the CEO of Amazon.com, uses the two-pizza rule: “If a team can’t be fed by two pizzas, it’s too large.”101
S U M M A RY: W H AT C H A R AC T E R I ST I C S CA N B E U S E D TO D E S C R I B E T E A M S ? The preceding sections illustrate that there are a variety of characteristics that can be used to describe teams. As Figure 11-5 illustrates, teams can be described using taxonomies of team types. For example, teams can be described by categorizing them as a work team, a management team, a parallel team, a project team, or an action team. Teams can also be described using the nature of the team’s interdependence with regard to its task, goals, and outcomes. Finally, teams can be described in terms of their composition. Relevant member characteristics include member roles, member ability, member personality, member diversity, and team size.
FIGURE 11-5 What Characteristics Can Be Used to Describe Teams?
Team Interdependence
Team Types
Team Composition
Member Roles
Member Personality
Team Diversity
Team Size
Member Ability
Task Interdependence
Goal Interdependence
Outcome Interdependence
Team Characteristics
• Work teams • Management
• Parallel teams • Project teams • Action teams
teams
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H O W I M P O R TA N T A R E T E A M C H A R AC T E R I S T I C S ?
In previous chapters, we have described individual characteristics and mechanisms and discussed how these variables affect individual performance and commitment. In this chapter, we’re con- cerned with team characteristics, and so naturally, we’re interested in how they influence team effectiveness. One aspect of team effectiveness is team performance, which may include metrics such as the quantity and quality of goods or services produced, customer satisfaction, the effec- tiveness or accuracy of decisions, victories, completed reports, and successful investigations. Team performance in the context of student project teams most often means the quality with which the team completes assignments and projects, as well as the grades they earn.
A second aspect of team effectiveness is team commitment, which is sometimes called team viability. Team viability refers to the likelihood that the team can work together effectively into the future.102 If the team experience is not satisfying and the members do not feel a bond with one another or with the team itself, members may become disillusioned and focus their energy on activi- ties away from the team. Although a team with low viability might be able to work together on short- term projects, over the long run, a team such as this is bound to have significant problems.103 Rather than planning for future tasks and working through issues that might improve the team, members of a team with low viability are more apt to be looking ahead to the team’s ultimate demise.
Of course, it’s difficult to summarize the relationship between team characteristics and team performance and commitment when there are so many characteristics that can be used to describe teams. Here we focus our discussion on the impact of task interdependence. We focus on task inter- dependence because it’s one of the most important characteristics that distinguishes true teams from mere groups of individuals. As Figure 11-6 shows, it turns out that the relationship between
11.5 How do team charac- teristics influence team effectiveness?
Sources: M.A. Campion, G.J. Medsker, and A.C. Higgs, “Relations between Work Group Characteristics and Effective- ness: Implications for Designing Effective Work Groups,” Personnel Psychology 46 (1993), pp. 823–49; M.A. Campion, E.M. Papper, and G.J. Medsker, “Relations between Work Team Characteristics and Effectiveness: A Replication and Extension,” Personnel Psychology 49 (1996), pp. 429–52; S.H. Courtright, G.R. Thurgood, G.L. Stewart, and A.J. Pierotti, “Structural Interdependence in Teams: An Integrative Framework and Meta-Analysis,” Journal of Applied Psychology 100 (2015), pp. 1825-1846; and G.L. Stewart, “A Meta-Analytic Review of Relationships between Team Design Features and Team Performance,” Journal of Management 32 (2006), pp. 29–54.
FIGURE 11-6 Effects of Task Interdependence on Performance and Commitment
Task interdependence has a moderate positive e�ect on Team Performance. However, the correlation is higher in teams involved in more complex knowledge work rather than less complex work.
Task interdependence has a weak relationship with Team Commitment. However, the correlation is stronger for teams involved in more complex knowledge work than in teams involved in less complex work.
Represents a strong correlation (around .50 in magnitude).
Represents a moderate correlation (around .30 in magnitude).
Represents a weak correlation (around .10 in magnitude).
Team Performance
Team Commitment
Task Interdependence
Task Interdependence
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task interdependence and team performance is moderately positive.104 That is, task performance tends to be higher in teams in which members depend on one another and have to coordinate their activities rather than when members work more or less independently. It’s important to men- tion that the relationship between task interdependence and team performance varies somewhat depending on how team performance is measured. Additionally, the relationship tends to be sig- nificantly stronger in teams that are responsible for completing complex knowledge work rather than simple tasks. When work is more complex, interdependence is necessary because there’s a need for members to interact and share resources and information. When work is simple, sharing information and resources is less necessary because members can do the work by themselves.
In the lower portion of Figure 11-6, you can see that the relationship between task interdepen- dence and team commitment is weaker.105 Teams with higher task interdependence have only a slightly higher probability of including members who are committed to their team’s continued existence. As with the relationship with team performance, task interdependence has a stronger effect on viability for teams doing complex knowledge work. Apparently, sharing resources and information in a context in which it’s unnecessary is dissatisfying to members and results in a team with reduced prospects of continued existence.
A P P L I C AT I O N : T E A M C O M P E N S AT I O N
Although all team characteristics have implications for managerial practices, outcome interde- pendence is particularly relevant for two reasons. First, outcome interdependence has obvious connections to compensation practices in organizations,106 and most of us are interested in factors that determine how we get paid. If you work for an organization with compensation that has high outcome interdependence, a higher percentage of your pay will depend on how well your team does. If you work for an organization with compensation that has low outcome interdependence, a lower percentage of your pay will depend on how well your team does.
A second reason outcome interdependence is important to consider is that it presents manag- ers with a tough dilemma. High outcome interdependence promotes higher levels of cooperation because members understand that they share the same fate—if the team wins, everyone wins, and if the team fails, everyone fails.107 At the same time, high outcome interdependence may result in reduced motivation, especially among higher performing members. High performers may perceive that they’re not paid in proportion to what they contributed to the team and that their teammates are taking advantage of this inequity for their own benefit.108
One solution to this dilemma has been to design team reward structures with hybrid outcome interdependence, which means that members receive rewards that are dependent on both their team’s performance and how well they perform as individuals.109 In fact, the majority of organiza- tions that use teams use some sort of hybrid outcome interdependence. But what percentage of team members’ pay is typically based on team performance in business organizations? This is a difficult question to answer, because as we discussed earlier in the chapter, there are so many dif- ferent types of teams doing so many different types of tasks, and also because organizations vary dramatically in their approaches to rewarding their employees. For example, the size of team-based pay in the goods and service sectors averages around 10–12 percent of an employee’s base pay.110 In contrast, production workers at Nucor, the Crawfordsville, Indiana–based steel company, earn team-based bonuses of 170 percent of their base pay, on average.111 It’s important to note that hybrid outcome interdependence, in and of itself, may not always be that effective in promoting team functioning and effectiveness. Research conducted at Xerox, for example, shows that service teams with hybrid outcome interdependence are less effective than service teams with very high or very low levels of outcome interdependence.112 Part of the problem with hybrid outcome inter- dependence is that it can lead to uncertainty about which types of behaviors are being rewarded and how pay ultimately is determined. To make hybrid interdependence work, organizations need to ensure that the system makes sense to employees. At Nucor, most production workers know within one-tenth of 1 percent what the team’s bonus is for the week, as well as which products will be produced next and how these future operations will likely affect their bonuses.113
11.6 How can team compensa- tion be used to manage team effectiveness?
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K E Y T E R M S
• Team p. 338 • Work team p. 339 • Management team p. 339 • Parallel team p. 340 • Project team p. 341 • Action team p. 342 • Virtual team p. 343 • Forming p. 343 • Storming p. 343 • Norming p. 343 • Performing p. 344 • Adjourning p. 344 • Punctuated equilibrium p. 344
• Task interdependence p. 345 • Pooled interdependence p. 345 • Sequential interdependence p. 345 • Reciprocal interdependence p. 345 • Comprehensive interdependence p. 346 • Goal interdependence p. 348 • Outcome interdependence p. 348 • Team composition p. 349 • Role p. 350 • Leader–staff teams p. 351 • Team task roles p. 351 • Team-building roles p. 351 • Individualistic roles p. 352
One way to resolve the dilemma of outcome interdependence is to implement a level of team- based pay that matches the level of task interdependence. Members tend to be more productive in high task interdependence situations when there’s also high outcome interdependence. Similarly, members prefer low task interdependent situations when there’s low outcome interdependence.114 To understand the power of aligning task and outcome interdependence, consider scenarios in which there’s not a good match. For example, how would you react to a situation in which you worked very closely with your teammates on a team project in one of your classes, and though your professor said the team’s project was outstanding, she awarded an A to one of your team members, a B to another, and a C to you? Similarly, consider how you would react to a situation in which you scored enough points for an A on your final exam, but your professor averaged everyone’s grades together and gave all students a C. Chances are you wouldn’t be happy with either scenario.
11.1 There are several different types of teams—work teams, management teams, action teams, project teams, and parallel teams—but many teams in organizations have characteristics that fit in multiple categories and differ from one another in other ways.
11.2 Teams can be interdependent in terms of the team task, goals, and outcomes. Each type of interdependence has important implications for team functioning and effectiveness.
11.3 Team composition refers to the characteristics of the members who work in the team. These characteristics include roles, ability, personality, and member diversity, as well as the number of team members.
11.4 The effect of diversity on the team depends on time and whether the diversity is surface level or deep level. The effects of surface-level diversity tend to diminish with time, whereas the effects of deep-level diversity tend to increase over time.
11.5 Task interdependence has a moderate positive relationship with team performance and a weak relationship with team commitment.
11.6 Outcome interdependence has important effects on teams, which can be managed with compensation practices that take team performance into account.
TA K E AWAY S
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11.1 In which types of teams have you worked? Were these teams consistent with the taxonomy of team types discussed in this chapter, or were they a combination of types?
11.2 Think about your student teams. Which aspects of both models of team development apply the most and least to teams in this context? Do you think these teams function best in an additive, disjunctive, or conjunctive manner? What are the advantages and disadvantages of each structure?
11.3 Think about a highly successful team with which you are familiar. What types of task, goal, and outcome interdependence does this team have? Describe how changes in task, goal, and outcome interdependence might have a negative impact on this team.
11.4 What type of roles do you normally take on in a team setting? Are there task or social roles that you simply don’t perform well? If so, why do you think this is?
11.5 How would you describe your student team in terms of its diversity? In what ways would there be advantages and disadvantages to increasing its diversity? How might you be able to manage some of the disadvantages so that your team is able to capitalize on the poten- tial advantages?
D I S C U S S I O N Q U E S T I O N S
• Disjunctive tasks p. 353 • Conjunctive tasks p. 353 • Additive tasks p. 353 • Team diversity p. 354 • Value in diversity problem-solving
approach p. 354
• Similarity-attraction approach p. 354 • Surface-level diversity p. 355 • Deep-level diversity p. 355 • Team viability p. 358 • Hybrid outcome interdependence p. 359
Teams are taken very seriously at Whole Foods. Not only are company employees referred to as “team members,” but teams are given a great deal of freedom to make important decisions. For example, teams help decide what items to order and sell, and how to price and promote them. Although it might not seem all that unusual for a company to give teams the liberty to make deci- sions so they can carry out their core functional responsibilities, Whole Foods goes much further in providing autonomy to their teams. Perhaps there is no better example of this than how new team members are hired at the company.
In most organizations, individuals seeking employment fill out an application form or submit a résumé. Those with qualifications that are judged to match a job description are interviewed by human resource personnel or a manager to make sure the applicant fits with the job and orga- nization. At Whole Foods, the process is quite different and much more involved. Applicants not only fill out an application and have one-on-one interviews with managers, but they also have interviews with panels composed of recruiters, managers, and select team members. But that’s not all. An applicant who makes it through this process is placed on a team for a 30-day trial period, after which the team votes for whether or not to accept the applicant on their team. Applicants who don’t get a two-thirds vote are out of that team. They may be placed on a new team, where the trial process begins anew, or they leave the company.
This hiring process typically takes about 60 days and is applied at all levels of the organization, “from cashiers on checkout teams to financial analysts in the home office.” Whole Foods believes
C A S E : W H O L E F O O D S
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EXERCISE: PAPER PLANE CORPORATION
The purpose of this exercise is to analyze the advantages and disadvantages of sequential versus pooled interdependence on a team production project. This exercise uses groups, so your instruc- tor will either assign you to a group or ask you to create your own group. The exercise has the following steps.
11.1 Your professor will supply you with the materials you need to create your final product (as many paper airplanes as you can fold to quality standards in three 5-minute rounds). Instructions for folding the paper airplanes and judging their quality are provided below. Before you start work on your airplanes, do the following:
a. As a group, select a team manager (who will supervise operations and get additional resources as needed) and a team inspector (who will judge the quality of the work on airplanes).
b. Familiarize yourself with how to make a paper airplane by folding one according to the instructions.
c. Be sure you are in a space where all of the team members can work comfortably. d. To the extent possible, move away from other groups. e. Familiarize yourself with the information about the Paper Plane Corporation.
11.2 Your group is the complete workforce for the Paper Plane Corporation. Established in 1943, Paper Plane has led the market in paper plane production. Presently under new man- agement, the company is contracting to make aircraft for the U.S. Air Force. You must determine the most efficient method for producing these aircraft. You must make your contract with the Air Force under the following conditions:
a. The Air Force will pay $200,000 per airplane. b. The aircraft must pass a strict inspection by a quality control manager. c. A penalty of $250,000 per airplane will be subtracted for each failure to meet the pro-
duction requirements. d. Labor and other overhead will be computed at $3,000,000. e. Cost of materials will be $30,000 per bid plane. If you bid for 10 but make only 8, you
must pay the cost of materials for those you failed to make or those that did not pass inspection.
that hiring decisions should be made by the team members, in part, because they’re the ones who are most directly affected by the choices that are made. A new hire who ends up hurting a team’s performance will reduce bonuses paid to team members, whereas the opposite would be true of a hire that ends up promoting a team’s performance. Whole Foods also believes that the team members themselves are the best judges of who might fit within their team. Finally, involving team members in the hiring process promotes a sense of ownership for the decision, and following from this, team members may be more inclined to help a new hire who is struggling to catch on.
11.1 What label would best describe the type of team that Whole Foods uses in its stores? Explain.
11.2 Describe the advantages and disadvantages of Whole Foods’ hiring process with respect to managing team composition.
11.3 What steps could Whole Foods take to mitigate potential disadvantages of their hiring process?
Sources: D. Burkus, “Why Whole Foods Builds Its Entire Business on Teams,” Forbes, June 8, 2016, https://www.forbes.com/ sites/davidburkus/2016/06/08/why-whole-foods-build-their-entire-business-on-teams/#1553674b3fa1; C. Fishman, “Whole Foods Is All Teams,” Fastcompany, April 30, 1996, https://www.fastcompany.com/26671/whole-foods-all-teams; Whole Foods, “Whole Foods Market History,” http://www.wholefoodsmarket.com/company-info/whole-foods-market-history(accessed 3, 31, 2017).
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11.3 In the first round of the airplane manufacturing process, the Air Force has asked you to focus on individuality. Each Paper Plane worker should manufacture his or her own planes from start to finish. When each plane is finished, it should be put in a central location for quality inspection. When time is called, you will record your team profit on the Summary Sheet.
11.4 In the second round of manufacturing, the Air Force has asked you to give each worker a specific job. In other words, the manufacturing process will take place in an assembly-line fashion. When planes come off the assembly line, they will be given directly to the quality control manager for inspection. When time is called, you will record your team profit on the Summary Sheet.
11.5 In the final round of manufacturing, the Air Force has asked your team to devise a manu- facturing process that will maximize both efficiency and effectiveness. You may do what- ever you like in terms of creating paper airplanes. You will have the same amount of time that you did in the two previous rounds. When time is called, you will record your team profit on the Summary Sheet.
11.6 Class discussion (whether in groups or as a class) should center on the following questions: a. Did pooled interdependence (Round 1) or sequential interdependence (Round 2) work
better for your group in terms of the number of planes made correctly? Why do you think you got the result you did?
b. How did you change your work structure in Round 3? Did the changes you imple- mented help you achieve better productivity? Why or why not?
c. From your perspective, what are the advantages and disadvantages of pooled and/or sequential interdependence?
STEP 1: Take a sheet of paper and fold it in half, then open it back up.
STEP 2: Fold upper corners to the middle.
STEP 3: Fold the corners to the middle again.
STEP 4: Fold in half.
STEP 5: Fold both wings down.
STEP 6: Fold tail fins up.
Completed Aircraft
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11.1 Ilgen, D.R.; D.A. Major; J.R. Hol- lenbeck; and D.J. Sego. “Team Research in the 1990s.” In Leadership Theory and Research: Perspectives and Directions, ed. M.M. Chemers and R. Ayman. New York: Academic Press, 1993, pp. 245–70.
11.2 Devine, D.J.; L.D. Clayton; J.L. Phil- ips; B.B. Dunford; and S.B. Melner. “Teams in Organiza- tions: Prevalence, Characteristics, and Effectiveness.” Small Group Research 30 (1999), pp. 678–711; Gordan, J. “Work Teams: How Far Have They Come?” Training
29 (1992), pp. 59–65; and Lawler, E.E., III; S.A. Mohrman; and G.E. Ledford Jr. Creating High Perfor- mance Organizations: Practices and Results of Employee Involvement and Total Quality Man- agement in Fortune 1000 Companies. San Francisco: Jossey- Bass, 1995.
11.3 Stewart, G.L.; C.C. Manz; and H.P. Sims Jr. Team Work and Group Dynamics. New York: Wiley, 1999.
11.4 Ibid.
11.5 Boning, B; C. Ichnio- wski; and K. Shaw. “Opportunity Counts: Teams and the Effec- tiveness of Production
Incentives.” Journal of Labor Economics 25 (2007), pp. 613–50.
11.6 Mathieu, J.E.; J.R. Hollenbeck; D. van Knippenberg; and D.R. Ilgen. “A Cen- tury of Work Teams in the Journal of Applied Psychology.” Journal of Applied Psychology 102 (2017), pp. 452–67.
11.7 Cohen, S.G., and D.E. Bailey. “What Makes Teams Work: Group Effectiveness Research from the Shop Floor to the Executive Suite.” Jour- nal of Management 23 (1997), pp. 239–90.
11.8 Liker, J.K. The Toyota Way. New York: McGraw-Hill, 2004.
E N D N OT E S
Round 1 Bid: _______ Aircraft @ $200,000 per aircraft = _______ Results: _____ Aircraft @ $200,000 per aircraft = _______ Subtract: $3,000,000 overhead + _____ × $30,000 cost of raw materials + _____ × $250,000 penalty for not completing a bid plane = _______ Profit: _________
Round 2 Bid: _______ Aircraft @ $200,000 per aircraft = _______ Results: _______ Aircraft @ $200,000 per aircraft = _______ Subtract: $3,000,000 overhead + _____ × $30,000 cost of raw materials + _____ × $250,000 penalty for not completing a bid plane = _____ Profit: _________
Round 3 Bid: _______ Aircraft @ $200,000 per aircraft = _______ Results: ______ Aircraft @ $200,000 per aircraft = _______ Subtract: $3,000,000 overhead + _____ × $30,000 cost of raw materials + _____ × $250,000 penalty for not completing a bid plane = _____ Profit: _________
Source: J.M. Ivancevich, J.M, R. Konopaske, and M. Matteson. Organizational Behavior and Management, 7th ed. New York: McGraw-Hill/Irwin, 2005. Original exercise by Louis Potheni in Luthans, F. Organizational Behavior. New York: McGraw-Hill, 1985, p. 555.
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11.9 Cohen and Bailey, “What Makes Teams Work.”
11.10 Ibid.
11.11 Sundstrom, E.; M. McIntyre; T. Halfhill; and H. Richards. “Work Groups: From the Hawthorne Studies to Work Teams of the 1990s and Beyond.” Group Dynamics, Theory, Research, and Practice 4 (2000), pp. 44–67.
11.12 Schlender, B. “The Man Who Built Pixar’s Incredible Innovation Machine.” Fortune, November 15, 2004, p. 206. ProQuest database (accessed May 28, 2007).
11.13 Hollenbeck, J.R.; B. Beersma; and M.E. Schouten. “Beyond Team Types and Taxonomies: A Dimensional Scaling Conceptualization for Team Description.” Academy of Manage- ment Review 37 (2012), pp. 82–106.
11.14 Hackman, J.R. “The Design of Work Teams.” In Handbook of Organizational Behavior, ed. J. Lorsch, Englewood Cliffs, NJ: Prentice Hall, 1987, pp. 315–42.
11.15 Cohen, S.G., and G.E. Ledford. “The Effectiveness of Self- Managing Teams: A Quasi-Experiment.” Human Relations 47 (1994), pp. 13–34; Cordery, J.L.; W.S.
Mueller; and L.M. Smith. “Attitudinal and Behavioral Effects of Autonomous Group Working: A Longitudinal Field Study.” Academy of Management Journal 34 (1991), pp. 464–76; and Wall, T.D.; N.J. Kemp; P.R. Jackson; and C.W. Clegg. “Outcomes of Autono- mous Work Groups: A Long-Term Field Experiment.” Academy of Management Jour- nal 29 (1986), pp. 280–304.
11.16 Hass, M.R. “The Double-Edged Swords of Autonomy and External Knowledge: Analyzing Team Effec- tiveness in a Multina- tional Organization.” Academy of Manage- ment Journal 53 (2010), pp. 989–1008.
11.17 Gilson, L.L.; M.T. Maynard; N.C Jones Young; M. Vartiainen; and M. Hokonen. “Virtual Teams Research: 10 Years, 10 Themes, and 10 Opportunities.” Jour- nal of Management 41 (2015), pp. 1313–37.
11.18 Fisher, A. “How to Build a (Strong) Virtual Team.” CNNMoney.com, December 10, 2009, http://money.cnn. com/2009/11/19/ news/companies/ ?ibm_virtual_ manager.fortune/ index.htm.
11.19 Ubell, R. “Virtual Team Learning.” Training and
Development, August 2010, pp. 53–57.
11.20 Fisher, “How to Build a (Strong) Virtual Team.”
11.21 Duckworth, H. “How TRW Automotive Helps Global Virtual Teams Perform at the Top of Their Game.” Development and Learn- ing in Organizations 23 (2008), pp. 6–16.
11.22 Schiff, D. “Global Teams Rock around the Clock.” Electronic Engineering Times 1435 (August 7, 2006), pp. 12, 20.
11.23 Godinez, V. “Sunshine 24/7: As EDS’ Work Stops in One Time Zone, It Picks Up in Another.” Knight Rid- der Tribune Business News, January 2, 2007, ProQuest database (accessed February 12, 2007); Schiff, “Global Teams Rock”; and Treinen, J.J., and S.L. Miller-Frost. “Fol- lowing the Sun: Case Studies in Global Soft- ware Development.” IBM Systems Journal 45 (2006), pp. 773–83.
11.24 Tuckman, B.W. “Developmental Sequence in Small Groups.” Psychological Bulletin 63 (1965), pp. 384–99; and Tuckman, B.W., and M.A.C. Jensen. “Stages of Small- Group Development Revisited.” Group and Organization Manage- ment 2 (1977), pp. 419–27.
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11.25 Guzzo, R.A., and G.P. Shea. “Group Performance and Intergroup Relations in Organizations.” Handbook of Industrial and Organizational Psychology, Vol. 3, ed. M.D. Dunnette and L.M. Hough, Palo Alto, CA: Consulting Psychologists Press, 1992, pp. 269–313.
11.26 Gersick, C.J.G. “Time and Transi- tion in Work Teams: Toward a New Model of Group Develop- ment.” Academy of Management Journal 33 (1988), pp. 9–41; and Gersick, C.J.G. “Marking Time: Pre- dictable Transitions in Task Groups.” Acad- emy of Management Journal 32 (1989), pp. 274–309.
11.27 Thompson, J.D. Orga- nizations in Action. New York: McGraw- Hill, 1967; and Van de Ven, A.H.; A.L. Delbeccq; and R. Koe- nig. “Determinants of Coordination Modes within Organizations.” American Sociological Review 41 (1976), pp. 322–38.
11.28 Ibid.
11.29 Thompson, Organiza- tions in Action.
11.30 Ibid.
11.31 Ibid.
11.32 Van de Ven et al., “Determinants of Coordination Modes.”
11.33 Kelley, T. The Art of Innovation. New York: Doubleday, 2001.
11.34 Courtright, S.H.; G.R. Thurgood; G.L. Stewart; and A.J. Pierotti. “Structural Interdependence in Teams: An Integrative Framework and Meta- Analysis.” Journal of Applied Psychology 100 (2015), pp. 1825–46; and Saavedra, R.; P.C. Earley; and L. Van Dyne. “Complex Inter- dependence in Task Performing Groups.” Journal of Applied Psychology 78 (1993), pp. 61–72.
11.35 Deutsch, M. The Resolution of Conflict. New Haven, CT: Yale University Press, 1973; and Wong, A.; D. Tjosvold; and Yu. Zi- you “Organizational Partnerships in China: Self-Interest, Goal Interdependence, and Opportunism.” Journal of Applied Psychology 90 (2005), pp. 782–91.
11.36 MacMillan, P.S. The Performance Factor: Unlocking the Secrets of Teamwork. Nash- ville, TN: Broadman & Holman, 2001.
11.37 Pearsall, M.J., and V. Venkataramani. “Over- coming Asymmetric Goals in Teams: The Interactive Role of Team Learning Orien- tation and Team Iden- tification.” Journal of Applied Psychology 100 (2015), pp. 735–48.
11.38 Ibid.
11.39 MacMillan, P.S. The Performance Factor: Unlocking the Secrets
of Teamwork. Nash- ville, TN: Broadman & Holman, 2001.
11.40 Mathieu, J.E., and T.L. Rapp. “The Foun- dation for Successful Team Performance Trajectories: The Roles of Team Char- ters and Performance Strategies.” Journal of Applied Psychology 94 (2009), pp. 90–103.
11.41 Shea, G.P., and R.A. Guzzo. “Groups as Human Resources.” In Research in Personnel and Human Resources Management, Vol. 5, ed. K.M. Rowland and G.R. Ferris. Green- wich CT: JAI Press, 1987, pp. 323–56.
11.42 De Dreu, C.K.W. “Outcome Inter- dependence, Task Reflexivity, and Team Effectiveness: Moti- vated Information Pro- cessing Perspective.” Journal of Applied Psychology 92 (2007), pp. 628–38.
11.43 Biddle, B.J. Role Theory: Expectations, Identities, and Behavior. New York: Academic Press, 1979; and Katz, D., and R.L. Kahn. The Social Psychology of Organizations, 2nd ed. New York: Wiley, 1978.
11.44 Humphrey, S.E.; F.P. Morgeson; and M.J. Mannor. “Developing a Theory of the Stra- tegic Core of Teams: A Role Composition Model of Team Per- formance.” Journal of Applied Psychology 94 (2009), pp. 48–61.
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11.45 Brehmer, B., and R. Hagafors. “Use of Experts in Complex Decision Making: A Paradigm for the Study of Staff Work.” Organiza- tional Behavior and Human Decision Processes 38 (1986), pp. 181–95.
11.46 Benne, K., and P. Sheats. “Functional Roles of Group Mem- bers.” Journal of Social Issues 4 (1948), pp. 41–49.
11.47 Li, N; H.H. Zhao; S.L. Walter; X.A. Zhang; and J. Yu. “Achieving More with Less: Extra Milers’ Behavioral Influences in Teams.” Journal of Applied Psychology 100 (2015), pp. 1025–39.
11.48 Lehmann-Willenbrock, N., and J. A. Allen. “How Fun Are Your Meetings? Investigat- ing the Relationship between Humor Patterns in Team Interactions and Team Performance.” Journal of Applied Psychology 99 (2014), pp. 1278–87.
11.49 Cole, M.S; F. Walter; and H. Bruch. “Affec- tive Mechanisms Linking Dysfunc- tional Behavior to Performance in Work Teams: A Moderated Mediation Study.” Journal of Applied Psychology 95 (2008), pp. 945–58.
11.50 Spencer, L. “Condi- tioning Has Become an Important Tool:
Let’s Get Physical.” Stock Car Racing (n.d.), http://www .stockcarracing.com/ howto/stock_car_pit_ crew_-conditioning/.
11.51 Devine, D.J., and J.L. Philips. “Do Smarter Teams Do Better: A Meta-Analysis of Cognitive Ability and Team Performance.” Small Group Research 32 (2001), pp. 507–32; and Stewart, G.L. “A Meta-Analytic Review of Relation- ships between Team Design Features and Team Performance.” Journal of Manage- ment 32 (2006), pp. 29–54.
11.52 LePine, J.A.; J.R. Hollenbeck; D.R. Ilgen; and J. Hedlund. “Effects of Individual Differences on the Performance of Hierarchical Decision- Making Teams: Much More than g.” Journal of Applied Psychology 82 (1997), pp. 803–11.
11.53 LePine, J.A. “Team Adaptation and Post- change Performance: Effects of Team Com- position in Terms of Members’ Cognitive Ability and Personal- ity.” Journal of Applied Psychology 88 (2003), pp. 27–39; and LePine, J.A. “Adapta- tion of Teams in Response to Unfore- seen Change: Effects of Goal Difficulty and Team Composition in Terms of Cognitive Ability and Goal Ori- entation.” Journal of
Applied Psychology 90 (2005), pp. 1153–67.
11.54 Steiner, I.D. Group Process and Productiv- ity. New York: Aca- demic Press, 1972.
11.55 Stewart, G.L.; I.S. Fulmer; and M.R. Bar- rick. “An Exploration of Member Roles as a Multilevel Link- ing Mechanism for Individual Traits and Team Outcomes.” Per- sonnel Psychology 58 (2005), pp. 343–65.
11.56 Gonzales-Mule, E.; D.S. DeGeest; B.W. McCormick; J.Y. Seong; and K.G. Brown. “Can We Get Some Cooperation Around Here? The Mediating Role of Group Norms on the Relationship between Team Personality and Individual Helping Behaviors.” Journal of Applied Psychology 99 (2014), pp. 988–99.
11.57 Bell, S.T. “Deep Level Composition Vari- ables as Predictors of Team Performance: A Meta-Analysis.” Journal of Applied Psy- chology 92 (2007), pp. 395–415; and Peeters, M.A.G.; H.F.J.M. Tuijl; C.G. van Rutte; and I.M.M.J. Reymen. “Personality and Team Performance: A Meta-Analysis.” European Journal of Personality 20 (2006), pp. 377–96.
11.58 Ibid.
11.59 Comer, D.R. “A Model of Social Loafing in Real Work
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Groups.” Human Rela- tions 48 (1995), pp. 647–67; and Wagner, J.A., III. “Studies of Individualism– Collectivism: Effects on Cooperation in Groups.” Academy of Management Journal 38 (1995), pp. 152–72.
11.60 LePine, J.A., and L. Van Dyne. “Voice and Cooperative Behavior as Contrasting Forms of Contextual Perfor- mance: Evidence of Differential Relation- ships with Personality Characteristics and Cognitive Ability.” Journal of Applied Psychology 86 (2001), pp. 326–36.
11.61 McGrath, J.E. “The Influence of Positive Interpersonal Rela- tions on Adjustment and Interpersonal Relations in Rifle Teams.” Journal of Abnormal and Social Psychology 65 (1962), pp. 365–75.
11.62 Bell, “Deep Level Composition Vari- ables”; and Peeters et al., “Personality and Team Performance.”
11.63 Barrick, M.R.; G.L. Stewart; M.J. Neubert; and M.K. Mount. “Relating Member Ability and Personal- ity to Work-Team Processes and Team Effectiveness.” Journal of Applied Psychol- ogy 83 (1998), pp. 377–91; LePine et al., “Effects of Individual
Differences”; and Neuman, G.A., and J. Wright. “Team Effectiveness: Beyond Skills and Cognitive Ability.” Journal of Applied Psychology 84 (1999), pp. 376–89.
11.64 LePine, J.A., and L. Van Dyne. “Peer Responses to Low Performers: An Attributional Model of Helping in the Context of Work Groups.” Academy of Management Review 26 (2001), pp. 67–84.
11.65 Bell, “Deep Level Composition Vari- ables”; and Peeters et al., “Personality and Team Performance.”
11.66 Barrick, M.R., and M.K. Mount. “The Big Five Personality Dimensions and Job Performance: A Meta- Analysis.” Personnel Psychology 44 (1991), pp. 1–26.
11.67 Barrick et al., “Relat- ing Member Ability and Personality.”
11.68 Barry, B., and G.L. Stewart. “Composi- tion, Process, and Performance in Self- Managed Groups: The Role of Personality.” Journal of Applied Psychology 82 (1997), pp. 62–78.
11.69 Williams, K., and C. O’Reilly. “The Com- plexity of Diversity: A Review of Forty Years of Research.” In Research in Organi- zational Behavior, Vol.
21, ed. B. Staw and R. Sutton. Greenwich, CT: JAI Press, 1998, pp. 77–140.
11.70 Harrison, D.A., and K.J. Klein. “What’s the Difference? Diver- sity Constructs as Separation, Variety, or Disparity in Orga- nizations.” Academy of Management Review 32 (2007), pp. 1199– 1228; Mohammed, S., and S. Nadkarni. “Are We All on the Same Temporal Page? The Moderating Effects of Temporal Team Cognition on the Polychronicity Diversity-Team Performance Rela- tionship.” Journal of Applied Psychology 99 (2014), pp. 404–22; and Roberson, Q.; A.M. Ryan; and B.R. Ragins. “The Evolu- tion and Future of Diversity at Work.” Journal of Applied Psy- chology 103 (2017), pp. 483–99.
11.71 Joshi, A., and H. Roh. “The Role of Context in Work Team Diver- sity Research: A Meta- Analytic Review.” Academy of Manage- ment Journal 52 (2009), pp. 599–627.
11.72 Aparna, J., and A.P. Knight. “Who Defers to Whom and Why? Dual Pathways Link- ing Demographic Dif- ferences and Dyadic Differences to Team Effectiveness.” Acad- emy of Management
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Journal 58 (2015), pp. 59–84; and Kim, E.; D.P. Bhave; and T.M. Glomb. “Emo- tion Regulation in Workgroups: The Roles of Demographic Diversity and Rela- tional Work Context.” Personnel Psychology 66 (2013), pp. 613–44.
11.73 Cox, T.; S. Lobel; and P. McLeod. “Effects of Ethnic Group Cul- tural Differences on Cooperative and Com- petitive Behavior on a Group Task.” Academy of Management Journal 34 (1991), pp. 827–47; and Mannix, E., and M.A. Neal. “What Differences Make a Difference? The Promise and Real- ity of Diverse Teams in Organizations.” Psychological Science in the Public Interest 6 (2005), pp. 31–55.
11.74 Page, S.E. “Mak- ing the Difference: Applying the Logic of Diversity.” Academy of Management Perspec- tives 21 (2007), pp. 6–20.
11.75 van Knippenberg, D.; C. K.W. DeDreu; and A.C. Homan. “Work Group Diversity and Group Performance: An Integrative Model and Research Agenda.” Journal of Applied Psychology 89 (2004), pp. 1008–22.
11.76 Ibid.
11.77 Kearney, E.; D. Gebert; and S.C. Voelpel. “When
and How Diversity Benefits Teams: The Importance of Team Members’ Need for Cognition.” Academy of Management Journal 52 (2009), pp. 581–98.
11.78 Canella, A.A., Jr.; J.H. Park; and H.U. Lee. “Top Management Team Functional Background Diversity and Firm Perfor- mance: Examining the Roles of Team Mem- ber Colocation and Environmental Uncer- tainty.” Academy of Management Journal 51 (2008), pp. 768– 84; Gruenfeld, D.H.; E.A. Mannix; K.Y. Williams; and M.A. Neale. “Group Com- position and Decision Making: How Member Familiarity and Infor- mation Distribution Affect Processes and Performance.” Orga- nizational Behavior and Human Decision Processes 67 (1996), pp. 1–15; Hoffman, L. “Homogeneity and Member Personal- ity and Its Effect on Group Problem Solving.” Journal of Abnormal and Social Psychology 58 (1959), pp. 27–32; Hoffman, L., and N. Maier. “Quality and Accep- tance of Problem Solutions by Members of Homogeneous and Heterogeneous Groups.” Journal of Abnormal and Social Psychology 62 (1961), pp. 401–7; Nemeth,
C.J. “Differential Contributions of Majority and Minority Influence.” Psychologi- cal Review 93 (1986), pp. 22–32; Stasster, G.; D. Steward; and G. Wittenbaum. “Expert Roles and Information Exchange during Discussion: The Importance of Knowing Who Knows What.” Journal of Experimental Social Psychology 57 (1995), pp. 244–65; Triandis, H.; E. Hall; and R. Ewen. “Member Het- erogeneity and Dyadic Creativity.” Human Relations 18 (1965), pp. 33–55; and Wat- son, W.; K. Kuman; and I. Michaelsen. “Cultural Diversity’s Impact on Interaction Process and Perfor- mance: Comparing Homogeneous and Diverse Task Groups.” Academy of Manage- ment Journal 36 (1993), pp. 590–602.
11.79 Byrne, D. The Attrac- tion Paradigm. New York: Academic Press, 1971; and Newcomb, T.M. The Acquaintance Process. New York: Holt, Rinehart and Winston, 1961.
11.80 Byrne, D.; G. Clore; and P. Worchel. “The Effect of Economic Similarity-Dissimilarity as Determinants of Attraction.” Journal of Personality and Social Psychology 4 (1996), pp. 220–24; Lincoln, J., and J. Miller.
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“Work and Friendship Ties in Organiza- tions: A Comparative Analysis of Relational Networks.” Administra- tive Science Quarterly 24 (1979), pp. 181–99; Triandis, H. “Cognitive Similarity and Interpersonal Communication in Industry.” Journal of Applied Psychology 43 (1959), pp. 321–26; and Triandis, H. “Cognitive Similarity and Communication in a Dyad.” Human Relations 13 (1960), pp. 279–87.
11.81 Jackson, S.E.; K.E. May; and K. Whitney. “Understanding the Dynamics of Diversity in Decision-Making Teams.” In Team Decision-Making Effec- tiveness in Organiza- tions, ed. R.A. Guzzo and E. Salas. San Francisco: Jossey-Bass, 1995, pp. 204–61; and Milliken, F.J., and L.L. Martins. “Searching for Common Threads: Understanding the Multiple Effects of Diversity in Organiza- tional Groups.” Acad- emy of Management Review 21 (1996), pp. 402–33.
11.82 Harrison, D.A.; K.H. Price; and M.P. Bell. “Beyond Relational Demography: Time and the Effects of Surface-and Deep- Level Diversity on Work Group Cohesion.” Academy of Management
Journal 41 (1998), pp. 96–107; and Harrison, D.A.; K.H. Price; J.H. Gavin; and A.T. Florey. “Time, Teams, and Task Per- formance: Changing Effects of Surface- and Deep-Level Diversity on Group Function- ing.” Academy of Man- agement Journal 45 (2002), pp. 1029–45.
11.83 Ibid.
11.84 Lau, D., and J.K. Murnighan. “Demo- graphic Diversity and Faultlines: The Com- positional Dynamics of Organizational Groups.” Academy of Management Review 23 (1998), pp. 325–40; and Lau, D., and J.K. Murnighan. “Interac- tions with Groups and Subgroups: The Effects of Demo- graphic Faultlines.” Academy of Manage- ment Journal 48 (2005), pp. 645–59.
11.85 Tuggle, C.S.; J. Schnatterly; and R.A. Johnson. “Attention Patterns in the Board- room: How Board Composition and Pro- cess Affect Discussion of Entrepreneurial Issues.” Academy of Management Journal 53 (2010), pp. 550–71.
11.86 Carton, A.M., and J.N. Cummings. “The Impact of Subgroup Type and Subgroup Configurational Prop- erties on Work Team Performance.” Journal of Applied Psychology
98 (2013), pp. 732– 58; and Homan, A.C.; D. van Knippenberg; G.A. Van Kleef; and C.K. W. De Dreu. “Bridging Faultlines by Valuing Diversity: Diversity Beliefs, Information Elabora- tion, and Performance in Diverse Work Groups.” Journal of Applied Psychology 92 (2007), pp. 1189–99.
11.87 Homan, A.C.; J.R. Hollenbeck; S.E. Humphrey; D. van Knippenberg; D.R. Ilgen; and G.A. van Kleef. “Facing Differences with an Open Mind: Open- ness to Experience, Salience of Intragroup Differences, and Per- formance of Diverse Work Groups.” Acad- emy of Management Journal 51 (2008), pp. 1204–22; and Kearney, E., and D. Gebert. “Managing Diversity and Enhanc- ing Team Outcomes: The Promise of Transformational Leadership.” Journal of Applied Psychology 94 (2009), pp. 77–89.
11.88 Ibid.
11.89 Ibid.
11.90 Mohammed, S., and S. Nadkarni. “Tempo- ral Diversity and Team Performance: The Moderating Role of Team Temporal Lead- ership.” Academy of Management Journal 54 (2011), pp. 489–508.
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11.91 Pieterse, A.N.; D. van Knippenberg; and W.P. van Ginkel. “Diversity in Goal Orientation, Team Reflexivity, and Team Performance.” Orga- nizational Behavior and Human Decision Processes 114 (2011), pp. 153–64.
11.92 Hoever, I.J.; D. van Knippenberg; W.P. van Ginkel; and H.G. Barkema. “Fostering Team Creativity: Perspective Taking as Key to Unlocking Diversity’s Potential.” Journal of Applied Psychology 97 (2012), pp. 982–96.
11.93 Klein, K.J.; A.P. Knight; J.C. Ziegert; B.C. Lim; and J.L. Salz. “When Team Members’ Values Dif- fer: The Moderating Role of Team Leader- ship.” Organizational Behavior and Human Decision Processes 114 (2011), pp. 25–36.
11.94 Ibid.
11.95 Bell, “Deep-Level Composition Variables.”
11.96 Humphrey, S.E.; J.R. Hollenbeck; C.J. Meyer; and D.R. Ilgen. “Trait Configurations in Self-Managed Teams: A Conceptual Exami- nation of Seeding for Maximizing and Mini- mizing Trait Variance in Teams.” Journal of Applied Psychology 92 (2007), pp. 885–92.
11.97 Stewart, “A Meta- Analytic Review.”
11.98 Kozlowski, S.W.J., and B.S. Bell. “Work Groups and Teams in Organization.” In Comprehensive Handbook of Psy- chology: Industrial and Organizational Psychology, Vol. 12, ed. W.C. Borman, D.R. Ilgen, and R.J. Klimoski. New York: Wiley, 2003, pp. 333–75.
11.99 Gooding, R.Z., and J.A. Wagner III. “A Meta-Analytic Review of the Rela- tionship between Size and Perfor- mance: The Produc- tivity and Efficiency of Organizations and Their Subunits.” Administrative Science Quarterly 30 (1985), pp. 462–81; and Markham, S.E.; F. Dansereau; and J.A. Alutto. “Group Size and Absentee- ism Rates: A Longitudinal Analysis.” Academy of Management Journal 25 (1982), pp. 921–27.
11.100 Hackman, J.R., and N.J. Vidmar. “Effects of Size and Task Type on Group Performance and Member Reac- tions.” Sociometry 33 (1970), pp. 37–54.
11.101 Source: Yank, J.L. “The Power of Number 4.6.”
Fortune 153, no. 11 (June 12, 2006), p. 122.
11.102 Sundstrom, E.; K.P. De Meuse; and D. Futrell. “Work Teams: Applications and Effectiveness.” American Psycholo- gist 45 (1990), pp. 120–33.
11.103 Stewart et al., Team Work and Group Dynamics.
11.104 Courtright et al., “Structural Interde- pendence in Teams”; Stewart, “A Meta- Analytic Review.”
11.105 Campion, M.A.; G.J. Medsker; and A.C. Higgs. “Rela- tions between Work Group Characteris- tics and Effective- ness: Implications for Designing Effec- tive Work Groups.” Personnel Psychology 46 (1993), pp. 823– 49; Campion, M.A.; E.M. Papper; and G.J. Medsker. “Rela- tions between Work Team Characteristics and Effectiveness: A Replication and Extension.” Person- nel Psychology 49 (1996), pp. 429–52; and Courtright et al., “Structural Interdependence in Teams.”
11.106 DeMatteo, J.S.; L.T. Eby; and E. Sund- strom. “Team-Based Rewards: Current Empirical Evidence and Directions for
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Future Research.” Research in Organi- zational Behavior 20 (1998), pp. 141–83.
11.107 Deutsch, M.A. “A Theory of Coop- eration and Com- petition.” Human Relations 2 (1949), pp. 199–231.
11.108 Williams, K.; S.G. Harkins; and B. Latane. “Identifiabil- ity as a Deterrent to Social Loafing: Two Cheering Experi- ments.” Journal of Personality and Social Psychology 40 (1981), pp. 303–11.
11.109 Lawler, E.E. Strategic Pay: Aligning Orga- nizational Strategies and Pay Systems. San
Francisco: Jossey- Bass, 1990.
11.110 O’Dell, C. People, Performance, Pay. American Productiv- ity Institute, 1987, cited in DeMatteo et al., “Team-Based Rewards.”
11.111 Bolch, M. “Reward- ing the Team: Make Sure Team-Oriented Compensation Plans Are Designed Care- fully.” HR Magazine, 2007, pp. 91–95.
11.112 Wageman, R. “Interdependence and Group Effective- ness.” Administrative Science Quarterly 40 (1995), pp. 145–80.
11.113 Bolch, “Rewarding the Team.”
11.114 Johnson, D.W.; G. Maruyama; R. John- son; D. Nelson; and L. Skon. “Effects of Cooperative, Compet- itive, and Individual- istic Goal Structures on Achievement: A Meta-Analysis.” Psychological Bul- letin 89 (1981), pp. 47–62; Miller, L.K., and R.L. Hamblin. “Interdependence, Differential Reward- ing and Productivity.” American Sociological Review 28 (1963), pp. 768–78; and Rosenbaum, M.E. “Cooperation and Competition.” In Psychology of Group Influence, ed. P.B. Paulus. Hillsdale, NJ: Erlbaum, 1980.
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12
LEARNING GOALS
12.1 What are taskwork processes, and what are some examples of team activities that fall into this process category?
12.2 What are teamwork processes, and what are some examples of team activities that fall into this process category?
12.3 What factors influence the communication process in teams? 12.4 What are team states, and what are some examples of the states that fall into this process category? 12.5 How do team processes affect team performance and team commitment? 12.6 What steps can organizations take to improve team processes?
After reading this chapter, you should be able to answer the following questions:
Teams: Processes and Communication
INDIVIDUAL OUTCOMES
INDIVIDUAL MECHANISMS
INDIVIDUAL CHARACTERISTICS
ORGANIZATIONAL MECHANISMS
Organizational Culture
Organizational Structure
Motivation
Trust, Justice, & Ethics
Teams: Characteristics &
Diversity Learning &
Decision Making
Stress
Leadership: Power &
Negotiation
Job Satisfaction
Leadership: Styles &
Behaviors
Organizational Commitment
Job Performance
GROUP MECHANISMS
Teams: Characteristics &
Diversity
Teams: Processes &
Communication
Ability
Personality & Cultural Values
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F ounded in 1975, Microsoft gained prominence by domi- nating the world’s personal computer operating sys- tems market, first with MS-DOS, and later, with Windows.
With Microsoft Office, the company also came to dominate the world’s office productivity applications market. Because of these products in particular, Microsoft experienced phe- nomenal success and growth during its first two-and-a-half decades. Since then, however, companies like Google, Face- book, and Apple have surpassed Microsoft in the develop- ment of innovative software, social media, and other tech products. By 2012, it was clear that Microsoft’s standing in the tech industry had eroded. Apple’s iPhone, which was only five years old at the time, had higher sales than absolutely everything Microsoft had to offer. What exactly went wrong?
Although Microsoft hired the best and brightest, the company had adopted management practices that unin- tentionally hindered the type of teamwork needed to bring innovative products to market. The best example is the company’s stack ranking system, which required managers to put a specific percentage of their subordinates in “top”, “good”, “average”, “below average”, and “poor” performing categories. Even if a manager had a team of 10 superstars, two would get great reviews, seven would get mediocre reviews, and one would get a horrible review (and would
likely be looking for a new job the next day). It doesn’t take too much of an imagination to understand how this system promoted unhealthy competition among teammates. Rather than sharing an idea with a teammate to move a project forward, employees would wait until right before a perfor- mance evaluation and then tell their manager to make sure they got credit for the idea. Employees did whatever they could to escape being on the bottom. They avoided work- ing on a team with other really good employees, they sabo- taged their teammates’ efforts, and they spent a lot of time schmoozing managers who would be rating them.
Microsoft realized that turning things around at the company would require that employees collaborate more effectively. To that end, abandoning the stack ranking sys- tem was a no-brainer. Importantly, Microsoft also changed the focus of the feedback given to employees about their job performance. For example, employees began receiving feedback on how well they use ideas and information from others, and also how well they contribute to others’ success and the success of their team and organization. In essence, Microsoft believed that a key to improving its competitive position was to refocus the mindset of their employees in a way that promotes effective teamwork and collaboration throughout the company.
MICROSOFT
©Robert Giroux/Getty Images
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T E A M P R O C E S S E S A N D C O M M U N I C AT I O N
As we described in Chapter 11 on team characteristics and diversity, a team consists of two or more people who work interdependently over some time period to accomplish common goals related to some task-oriented purpose.1 The effectiveness of organizations depends to a large extent on the activities and interactions that occur within teams as they move toward their task-related objec- tives. Team process is a term that refers to the different types of communication, activities, and interactions that occur within teams that contribute to their ultimate end goals.2 Team character- istics, like member diversity, task interdependence, team size, and so forth, affect team processes and communication. Those processes, in turn, have a strong impact on team effectiveness. In fact, some have argued that extraordinary teams are defined in terms of their processes.3
Some of the team processes and forms of communication that we describe in this chapter are observable by the naked eye. An outside observer would be able to see a crew of astronauts com- municating with each other in regard to the status of the systems in their space capsule. Other processes, in contrast, are less visible. An outside observer wouldn’t be able to see the sense of “cohesion” felt by the members of this crew or the shared “mental models” that cause them to work together so efficiently. Thus, team processes include interactions among members that occur behaviorally, as well as the hard-to-see feelings and thoughts that coalesce as a consequence of member interactions. For an example of the importance of team processes, see our OB at the Bookstore feature.
W H Y A R E S O M E T E A M S M O R E T H A N T H E S U M O F T H E I R PA R T S ?
Take a second and try to think of a few teams that have been successful. It’s likely that the suc- cess of some of these teams was expected because the team had members who are very talented and skilled. The success of other teams may be more difficult to understand just by looking at the rosters of their members. These teams might have members who appear to be less talented and skilled, but as they work together, they somehow became “more than the sum of their parts.” Getting more from the team than you would expect according to the capabilities of its individual members is called process gain. This capability, which is synonymous with the term synergy, is most critical in situations in which the complexity of the work is high or when tasks require mem- bers to combine their knowledge, skills, and efforts to solve problems. In essence, process gain is important because it results in useful resources and capabilities that did not exist before the team created them.4
Having described process gain, we now consider its polar opposite, process loss, or getting less from the team than you would expect based on the capabilities of its individual members. To understand process loss, think of an experience you’ve had with a team you felt was a sure bet to do well based on the capabilities of the members, but didn’t achieve the level of success you expected. You may be thinking of a sports team where the members were the best athletes or the best at their respective positions, but the players just didn’t seem to mesh well, and as a result, the team didn’t win. Or perhaps you’re thinking of a student team with an assignment to do a term project, and although the team was composed of the brightest students in class, it became apparent on presentation day that the team’s ideas weren’t very creative or well-executed, and as a result, the project paled in comparison with the projects of the other student teams. If you’ve had an experience like this, you know how frustrating it can be. In reality, process loss is a common and costly by-product of doing work in teams.
But what factors conspire to create process loss? One factor is that in teams, members have to work to not only accomplish their own tasks, but also coordinate their activities with the activi- ties of their teammates.5 Although this extra effort focused on integrating work is a necessary aspect of the team experience, it’s called coordination loss because it consumes time and energy
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OB AT THE BOOKSTORE SMART COLLABORATION Heidi K. Gardner (Boston: Harvard Business Review Press, 2016).
The most important challenge faced by any such organization is bringing that collective exper- tise to bear on problems that, increasingly, are so complicated and so sophisticated that no single expert—no matter how smart or hardworking—is in a position to solve them.
With those words, Heidi Gardner hints at why effective team pro- cesses are indispensable to professional service firms, which refer to companies that deliver specialized services—things like architec- ture, auditing, engineering, management consulting, and law—to cli- ents. Gardner argues that devising solutions to highly complex and uncertain problems requires highly specialized professionals who not only possess the requisite knowledge and expertise in a collec- tive sense, but also the ability to engage in “smart collaboration.” According to Gardner, smart collaboration does not mean that the teams of professionals “divide and conquer,” or that members hand off their contributions to other members in a sequential fashion. Instead, smart collaboration involves effective repeated interactions among a team of professionals, “that, over time, allow the creative recombinations of different people’s information, perspectives, and expertise.”
The book is largely a business case for the role of effective team processes in producing creative solutions to client problems. For
example, Gardner shares research that indicates clients prefer to work with firms that engage in smart collaboration, and that as the level of smart collaboration increases, so does firm revenue and profit. Gardner also discusses implications of smart collaboration to professionals who may have grown accustomed to working independently. For example, “solo specialists,” or profession- als in the middle and upper ranks of a firm who possess a strong reputation in a particular niche, and who may be considered the “go-to” experts by a long list of clients, are not inclined to collabo- rate because of the time and effort needed to coordinate, and because they fear that potential col- laborators could ruin client relationships that took years to develop. However, Gardner provides evidence that a successful solo specialist can significantly increase business by engaging in smart collaboration, and thus, the extra effort spent in selecting potential collaborators and helping them develop can prove to be very worthwhile.
©Roberts Publishing Services
that could otherwise be devoted to task activity.6 Such coordination losses are often driven by production blocking, which occurs when members have to wait on one another before they can do their part of the team task.7 If you’ve ever worked in a team in which you felt like you couldn’t get any of your own work done because of all the time spent in meetings, following up requests for information from other team members, and waiting on team members to do their part of the team task, you already understand how frustrating production blocking (and coordination loss) can be. In the context of a game like soccer, production blocking might occur if a player has to wait too long for a teammate to get into position to receive the ball before making a pass.
The second force that fosters process loss in team contexts is motivational loss, or the loss in team productivity that occurs when team members don’t work as hard as they could.8 Why
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does motivational loss occur in team contexts? One explana- tion is that it’s often quite diffi- cult to gauge exactly how much each team member contributes to the team. Members of teams can work together on projects over an extended period of time, and as a consequence, it’s difficult to keep an accu- rate accounting of who does what. Similarly, members con- tribute to their team in many different ways, and contribu- tions of some members may be less obvious than the contribu-
tions of others. Finally, members of teams don’t always work together at the same time as a unit. Regardless of the reasons for it, uncertainty regarding “who contributes what” results in team members feeling less accountable for team outcomes. Those feelings of reduced accountability, in turn, cause members to exert less effort when working on team tasks than they would if they worked alone on those same tasks. This phenomenon is called social loafing,9 and it can significantly hinder a team’s effectiveness.10 In the context of a student team responsible for a project, motivational loss and social loafing may result if some students on the team come to depend on a student who is particularly motivated and knowledgeable.
TAS K WO R K P R O C E S S E S Having described process gains and process losses, it’s time to describe the particular team pro- cesses that can help teams increase the former, while reducing the latter. One relevant category of team processes is taskwork processes, which are the activities of team members that relate directly to the accomplishment of team tasks. In a general sense, taskwork occurs any time that team members interact with the tools or technologies that are used to complete their work. In this regard, taskwork is similar to the concept of task performance described in Chapter 2 on job performance. However, in the context of teams, especially those that engage in knowledge work, three types of taskwork processes are crucially important: creative behavior, decision making, and boundary spanning. These three taskwork processes are shown in Figure 12-1.
CREATIVE BEHAVIOR When teams engage in creative behavior, their activities are focused on generating novel and useful ideas and solutions.11 In Chapter 9 on personality and cul- tural values, we noted that creative behavior is driven in part by the creativity of individual employees, because some employees are simply more original and imaginative than others. Researchers have also found that creativity in teams may be affected by characteristics such as conformity and attention to detail.12 However, the team environment is also uniquely suited to fostering creative behavior.13 As a consequence, organizations like Palo Alto–based IDEO, arguably the world’s most successful product design firm, rely on teams to come together and combine their members’ unique sets of knowledge and skill in a manner that results in novel and useful ideas.14 However, achieving such outcomes depends on much more than just putting a diverse mix of people together and letting them go at it. In fact, creative behavior in teams can be fostered when members participate in a specific set of activities. For example, team members have to be open to developing informal means of coordinating when potential syner- gies are discovered in the knowledge possessed among specific members or subgroups within in a team.15
Perhaps the best-known activity that teams use to foster creative behavior is brainstorming. Generally speaking, brainstorming involves a face-to-face meeting of team members in which each
12.1 What are taskwork pro- cesses, and what are some examples of team activities that fall into this process category?
The U.S. women’s soccer team was favored in the
early rounds of the 2015 World Cup but failed to
perform to their potential due to process loss. The
team achieved synergy in the final game against Japan, however. In fact,
their 5–2 victory was one of the most dominating performances ever in a
Women’s World Cup final.
©Andy Clark/Getty Images
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offers as many ideas as possible about some focal problem or issue.16 Most brainstorming sessions center around the following rules:
1. Express all ideas that come to mind (no matter how strange). 2. Go for quantity of ideas rather than quality. 3. Don’t criticize or evaluate the ideas of others. 4. Build on the ideas of others.
The idea is that if a team follows these rules, it will develop a large pool of ideas that it can use to address the issue at hand.17 This concept sounds very reasonable, and almost all of us have been in some sort of brainstorming meeting at some point. However, it may surprise you to learn that such brainstorming sessions rarely work as well as intended. In fact, research suggests that team members would be better off coming up with ideas on their own, as individuals, before pooling those ideas and evaluating them to arrive at a solution.18
Why doesn’t brainstorming work as well as individual idea generation? There appear to be at least three reasons.19 First, there may be a tendency for people to social loaf in brainstorming ses- sions. That is, members may not work as hard thinking up ideas as they would if they had to turn in an individually generated list with their name on it. Second, though the rules of brainstorming explicitly forbid criticizing others’ ideas, members may be hesitant to express ideas that seem silly or not well thought-out. Third, brainstorming results in production blocking because members have to wait their turn to express their ideas. This waiting around consumes time that could other- wise be used by individuals to generate new ideas.
Given the problems associated with brainstorming, why do organizations continue to use it? One reason is that the general idea of brainstorming is well known, and common sense leads people to believe that it works as advertised. Another reason is that there are benefits of brain- storming beyond just generating ideas. For example, brainstorming builds morale and results in the sharing of knowledge that might otherwise be locked inside the minds of the individual team members.20 Although this knowledge may not be useful for the particular problem that’s being debated, it might be useful for issues that arise in the future. To achieve the benefits of brainstorm- ing, some companies take extra steps to ensure team members are fully engaged in the process of generating ideas. At IDEO, for example, brainstorming meetings often open with a warm-up session, typically a fast-paced word game to clear the minds of the participants.21 Table 12-1 lists secrets of better brainstorming, as practiced at IDEO.
One offshoot of brainstorming that addresses some of its limitations is the nominal group technique.22 Similar to a traditional brainstorming session, this process starts off by bringing the team together and outlining the purpose of the meeting. The next step takes place on an individual level, however, as members have a set period of time to write down their own ideas on a piece of paper. The subsequent step goes back into the team setting, as members share their ideas with the team in a round-robin fashion. After the ideas are recorded, members have a discussion intended
FIGURE 12-1 Taskwork Processes
Creative Behavior
Decision Making
Boundary Spanning
Taskwork Processes
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to clarify the ideas and build on the ideas of others. After this, it’s back to an individual environ- ment; members rank order ideas on a card that they submit to a facilitator. A facilitator then tabulates the scores to determine the winning idea. From this description, you probably can guess how the nominal group technique addresses the problems with brainstorming. By making people write down ideas on their own, it decreases social loafing and production blocking. Although team members might still be hesitant about expressing wild ideas to the group, doing so might be less threatening than having nothing to contribute to the group. In addition, ranking items as individuals makes people less apprehensive about going “against the grain” of the group by voicing support for an unpopular idea.
DECISION MAKING In Chapter 8 on learning and decision making, we described how people use information and intuition to make specific decisions. In team contexts, however, decisions result from the interaction among team members. Information that is gathered and shared among members is synthesized into collective knowledge, which is then used as a basis for different types of team decisions.23 In some team contexts. members share information regarding a problem or task, and they work together to reach a consensus, or general agreement among members in regards to the final solution. Juries provide a good example of how this type of decision making works. Members of a jury listen to information provided by attorneys and witnesses, and after they’re given instructions by a judge, they meet privately to discuss the information with the goal being to reach a consensus regarding the verdict.
There has been a great deal of research on consensus decision making in the context of juries; however, the most important lesson from this research is that the strongest predictor of the final verdict is the distribution of the positions the individual jury members have in mind going into deliberations.24 In fact, the position held by the majority of the jury members prior to deliberation
WHAT TO DO DESCRIPTION
Have a sharp focus Begin the brainstorming with a clearly stated problem.
Playful rules Encourage playfulness, but don’t debate or critique ideas.
Number the ideas Make it easier to jump back and forth between ideas.
Build and jump Build on and explore variants of ideas.
The space remembers Use space to keep track of the flow of ideas in a visible way.
Stretch your brain Warm up for the session by doing word games.
Get physical Use drawings and props to make the ideas three-dimensional.
WHAT NOT TO DO DESCRIPTION
The boss speaks first Boss’s ideas limit what people will say afterwards.
Give everybody a turn Forcing equal participation reduces spontaneity.
Only include experts Creative ideas come from unexpected places.
Do it off-site You want creativity at the office too.
Limit the silly stuff Silly stuff might trigger useful ideas.
Write down everything The writing process can reduce spontaneity.
Source: T. Kelley and J. Littman, The Art of Innovation (New York: Doubleday, 2001).
TABLE 12-1 IDEO’s Secrets for Brainstorming
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turns out to be the final verdict 90 percent of the time.25 It’s not that jury members with the minority position simply acquiesce to the majority because of pressure, but rather, having more jury members in the majority increases the information and arguments available that support the majority.26 Interestingly, however, despite all the research on consensus decision making, there is not a lot of evidence that this research has been very useful to attorneys and trial consultants in composing juries in a way that would lead to favorable decisions for their side.27
In other team contexts, decision making involves multiple members gathering and consider- ing information that’s relevant to their area of specialization, and then making recommendations to a team leader who is ultimately responsible for a final decision, which at some point, can be judged with regard to accuracy or effectiveness.28 Although the degree of member specialization and hierarchical structure of teams vary a great deal,29 you can understand this type of decision- making process if you consider what happens on project teams with an assigned leader and members who are responsible for different aspects of the project; design, engineering, marketing, logistics, sales, and so forth. Throughout the project, members make suggestions and recommen- dations to the leader, who’s ultimately responsible for making the decisions that determine the success of the project.
What factors account for a team’s ability to make accurate and effective decisions? At least three factors appear to be involved.30 The first factor is decision informity, which reflects whether members possess adequate information about their own task responsibilities. Project teams can fail, for example, because the team member in charge of marketing doesn’t gather information nec- essary to help the team understand the desires and needs of the client. The second factor is staff validity, which refers to the degree to which members make good recommendations to the leader. Team members can possess all the information needed to make a good recommendation but then fail to do so because of a lack of ability, insight, or good judgment. The third factor is hierarchical sensitivity, which reflects the degree to which the leader effectively weighs the recommendations of the members. Whom does the leader listen to, and whom does the leader ignore? Teams that make good decisions tend to have leaders that do a good job giving recommendations the weight they deserve. Together, these three variables play a large role in how effective teams are in terms of their decision making.31
The concepts of decision informity, staff validity, and hierarchical sensitivity can be used to make specific recommendations for improving team decision making. For example, research shows that more experienced teams tend to make better decisions because they develop an understanding of the information that’s needed and how to use it, and have leaders that develop an understanding of which members provide the best recommendations.32 The implication here is that team decision making may be improved if teams are allowed to work together on an ongo- ing basis across different projects. As another example, team decision making may be improved by giving members feedback about the three variables involved in the decision-making process.33 For instance, a team can improve its decision making if the members are told that they have to share and consider additional pieces of information before making recommendations to the leader. Although this recommendation may seem obvious, all too often teams receive feedback only about their final decision. In addition, there may be a benefit to separating the process of sharing information from the process of making recommendations and final decisions, at least in terms of how information is communicated among members.34 Whereas team members tend to share more information when they meet face-to-face, leaders do a better job considering recommendations and making final decisions when they’re away from the members. Leaders who are separated don’t have to deal with pressure from members who may be more assertive or better at articulating and defending their positions. Our OB Internationally feature describes additional considerations that need to be taken into account to improve decision making in cul- turally diverse teams.35
BOUNDARY SPANNING The third type of taskwork process is boundary spanning, which involves three types of activities with individuals and groups other than those who are consid- ered part of the team.36 Ambassador activities refer to communications that are intended to protect the team, persuade others to support the team, or obtain important resources for the team. As you might have guessed from this description, members who engage in ambassador
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activities typically communicate with people who are higher up in the organization. For exam- ple, a member of a marketing team might meet with senior management to request an increase in the budget for an expanded television ad campaign. Task coordinator activities involve com- munications that are intended to coordinate task-related issues with people or groups in other functional areas. Continuing with the marketing team example, a member of the team might meet with someone from manufacturing to work out how a coupon might be integrated into the product packaging materials. Finally, scout activities refer to things team members do to obtain information about technology, competitors, or the broader marketplace. The marketing team member who meets with an engineer to seek information about new materials is engaging in scout activities.
Taken together, research suggests that these three boundary-spanning activities may be as important to determining team success as the processes that occur entirely within the team.37 Many teams in organizations are involved with complex work that requires going outside the
In today’s global economy, organizations have become increasingly reliant on multinational teams, or teams composed of individuals who do not share the same national identification. One benefit of multinational teams is economic. Rather than having separate businesses or products in several different countries, organizations leverage economies of scale by establishing multinational teams to develop and manage global products. A second benefit is that diversity in terms of national origin may result in business decisions that are more innovative. Such innovation stems from the team having a diverse set of experiences and perspectives from which to draw when trying to accomplish work. However, along with these benefits are potential team process problems. The most obvious problem is language barriers that prevent team members from communicating effec- tively with one another. Beyond simple misunderstandings, communication barriers can result in difficulties in coordinating tasks and may hinder members from receiving or understanding the information they need to make good recommendations and decisions. So what can multinational teams do to address some of these problems?
One solution is group decision support systems, which involve the use of computer technology to help the team structure its decision-making process. As an example, team members might meet in a room where each member sits at a networked laptop. At different points during the meet- ing, members are directed to enter their ideas and recommendations into the computer. These inputs are then summarized and shared visually with the entire team on their computer screens. Advantages of this approach are that the system keeps the meeting focused squarely on the task, and information can be presented in a logical sequence at a pace that makes it easier to digest. Moreover, no single member can dominate the meeting. As a consequence of these advantages, team members may participate more uniformly in the meeting and develop a more consistent understanding of the information that was exchanged. Another advantage is that the technique can be modified and used when members are geographically dispersed.
OB INTERNATIONALLY
Sources: T. Cox, S. Lobel, and P. McLeod, “Effects of Ethnic Group Cultural Differences on Cooperative and Competitive Behavior on a Group Task,” Academy of Management Journal 34 (1991), pp. 827–47; P. Dwyer, P. Engardio, S. Schiller, and S. Reed, “The New Model: Tearing up Today’s Organization Chart,” BusinessWeek, November 18, 1994, pp. 80–90; D.R. Ilgen, J.A. LePine, and J.R. Hollenbeck, “Effective Decision Making in Multinational Teams,” in New Perspectives in International Industrial–Organizational Psychology, ed. P.C. Earley and M. Erez (San Francisco: Jossey-Bass, 1997), pp. 377–409; E. Mannix and M.A. Neal, “What Differences Make a Difference? The Promise and Reality of Diverse Teams in Organizations,” Psychological Science in the Public Interest 6 (2005), pp. 31–55; and J.M. Prieto Zamora and R. Martinez Arias, “Those Things Yonder Are Not Giants, but Decision Makers in International Teams,” in New Perspec- tives on International Industrial and Organizational Psychology, ed. P.C. Earley and M. Erez (San Francisco: New Lexington Press, 1997), pp. 410–45.
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team to coordinate, and for support, resources, and information. To the extent that teams do not exist in a vacuum, it can be beneficial to have members with the expertise, experiences, and the type of disposition to engage in the type of boundary spanning activities we dis- cussed here.38 For an example of a team that relies extensively on boundary spanning, see our OB on Screen feature.
OB ON SCREEN SPOTLIGHT
We are a four-person investigative team, we report to Ben Bradlee Jr., and we keep our work confidential.
With those words, Walter “Robby” Robinson (Michael Keaton) provides a brief description of his team of investigative reporters to Marty Baron (Liev Schreiber), the incoming editor of the Boston Globe, in the reality-based movie, Spotlight (Dir. Tom McCarthy, Participant Media, 2016). Robinson is meeting with Baron for the first time over lunch. The Globe’s circulation has been fall- ing, and there are rumors that Baron fired a lot of people at his last paper in Miami, so Robinson is concerned about the future of his team, called Spotlight. Although Baron plays coy about the issue at their lunch meeting, the next day there’s another meeting, during which he asks Spotlight to take on a very difficult assignment: Investigate and write a story about a cover-up involving Catholic priests in Boston who have been caught molesting children but were never prosecuted.
Although the film depicts many of the team processes and communication concepts that we dis- cuss in this chapter, it serves as a particularly good illustration of boundary spanning. In the meeting described above, for example, Robinson describes the unique role of Spotlight at the paper, and tries to gauge whether his team will continue to be supported by Baron. This is a clear example of an ambas- sador activity. In other scenes, members of Spotlight engage in task coordinator activities. For exam- ple, team member Mike Rezendes (Mark Ruffalo) meets with attorney Mitchell Garabedian (Stanley Tucci) to ask if some of his clients—the molestation victims—would agree to be interviewed. Finally, there are many scenes that illustrate scouting activities. For example, members of the Spotlight team scan old news stories on microfiche, search for names in directories, and conduct interviews with peo- ple in search of information that can be pieced together to advance the story or fill gaps in the team’s understanding. Although members of Spotlight are quite intelligent, determined, and skilled, it’s clear that the team’s success hinges almost entirely on the effectiveness of their boundary spanning.
©Photo 12/Alamy
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T E A M WO R K P R O C E S S E S Another category of team process that helps teams increase their process gain while minimizing their process loss is teamwork processes. Teamwork processes refer to the interpersonal activities that facilitate the accomplishment of the team’s work, but do not directly involve task accomplish- ment itself.39 You can think of teamwork processes as the behaviors that create the setting or context in which taskwork can be carried out. So what types of behaviors do teamwork processes involve? Figure 12-2 summarizes the set of teamwork processes that we discuss in this chapter.40
TRANSITION PROCESSES Teamwork processes become important as soon as teams first begin their work. Transition processes are teamwork activities that focus on preparation for future work. For example, mission analysis involves an analysis of the team’s task, the challenges that face the team, and the resources available for completing the team’s work. Strategy formulation refers to the development of courses of action and contingency plans, and then adapting those plans in light of changes that occur in the team’s environment. Finally, goal specification involves the development and prioritization of goals related to the team’s mission and strategy. Although these examples focus on the team’s taskwork activities, transition processes could focus on team- work as well. For example, a team could develop a plan intended to enhance teamwork among members over the course of a long project.41 Each of these transition processes is relevant before the team actually begins to conduct the core aspects of its work. However, these transition pro- cesses also may be important between periods of work activity. For example, think about the half- time adjustments made by a basketball team that’s losing a game badly. The team could consider the strengths of its opponent and develop a new strategy intended to neutralize them. In this way, teams may switch from transition processes to taskwork, then back to transition processes. As another example, debriefing and after-action reviews, which refer to systematic discussions and reviews of performance episodes, have been used by the military for decades. However, because they work so well in improving the effectiveness of teams, their use is spreading to nonmilitary organizations as well.42
ACTION PROCESSES Whereas transition processes are important before and between periods of taskwork, action processes are important as the taskwork is being accomplished. One type of action process involves monitoring progress toward goals. Teams that pay attention to goal-related information—perhaps by charting the team’s performance relative to team goals—are typically in a good position to realize when they are “off-track” and need to make changes. Systems monitoring involves keeping track of things that the team needs to accomplish its work. A team that does not engage in systems monitoring may fail because it runs out of inventory, time, or other necessary resources. Helping behavior involves members going out of their way to help or back up other team members. Team members can provide indirect help to their teammates in the form of feedback or coaching, as well as direct help in the form of assistance with members’ tasks and responsibilities. Helping behavior tends to be higher in teams with members who share in the belief that it’s appro- priate to invest effort in benefiting others, and may be most beneficial to teams when workload is distributed unequally among members.43 Coordination refers to synchronizing team members’
12.2 What are teamwork pro- cesses, and what are some examples of team activities that fall into this process category?
FIGURE 12-2 Teamwork Processes
Transition Processes
Action Processes
Action Processes
Transition Processes
Interpersonal Processes
TIME
Teamwork Processes
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activities in a way that makes them mesh effectively and seamlessly. Poor coordination results in team members constantly having to wait on others for information or other resources necessary to do their part of the team’s work.44
INTERPERSONAL PROCESSES The third category of teamwork processes is called interpersonal processes. The processes in this category are important before, during, or between periods of taskwork, and each relates to the manner in which team members manage their rela- tionships. The first type of interpersonal process is motivating and confidence building, which refers to things team members do or say that affect the degree to which members are motivated to work hard on the team’s task. Expressions that create a sense of urgency and optimism are examples of communications that would fit in this category. Similarly, affect management involves activities that foster a sense of emotional balance and unity. If you’ve ever worked in a team in which members got short-tempered when facing pressure or blamed one another when there were problems, you have firsthand experience with poor affect management.
Another important interpersonal process is conflict management, which involves the activi- ties that the team uses to manage conflicts that arise in the course of its work. Conflict tends to have a negative impact on a team, but the nature of this effect depends on the focus of the conflict as well as the manner in which the conflict is managed.45 Relationship conflict refers to disagreements among team members in terms of interpersonal relationships or incompatibilities with respect to personal values or preferences. This type of conflict centers on issues that are not directly connected to the team’s task. Relationship conflict is not only dissatisfying to most people, it also tends to result in reduced team performance. Task conflict, in contrast, refers to disagreements among members about the team’s task. Logically speaking, this type of conflict can be beneficial to teams if it stimulates conversations that result in the development and expres- sion of new ideas.46 Research findings, however, indicate that task conflict tends to result in reduced team effectiveness unless several conditions are present.47 First, members need to trust one another and be confident that they can express their opinions openly without fear of repri- sals. Second, team members need to engage in effective conflict management practices. In fact, because task conflict tends to be most beneficial to teams when relationship conflict is low, there are reasons to focus conflict management efforts on trying to reduce this aspect of conflict.48 Third, there’s some evidence that task conflict may benefit teams when they’re composed in cer- tain ways. For example, task conflict has been shown to be most beneficial to teams comprised of members who are either emotionally stable or open to new experiences.49 Finally, the benefits of task conflict may be most evident when the conflict is positively skewed, or in other words, when the majority of the members of a team are unaware of the conflict that occurs among a few members of the team.50 (For more discussion of conflict management issues, see Chapter 13 on leadership power and negotiation.)
So what does effective conflict management involve? First, when trying to manage conflict, it’s important for members to stay focused on the team’s mission. If members do this, they can rationally evaluate the relative merits of each position.51 Second, any benefits of task conflict disappear if the level of the conflict gets too heated, if par- ties appear to be acting in self-interest rather than in the best interest of the team, or if there’s high relationship conflict.52 Third, to effectively manage task conflict, members need to discuss their positions openly and be willing to exchange information in a way that fos- ters collaborative problem solving.53 If you’ve ever had an experience in an ongoing relationship in which you tried to avoid uncomfortable conflict by ignoring it, you probably already understand that this strategy tends to only make things worse in the end.
For task conflict to be productive, team members must feel free to express their opinions and know how to manage conflict effectively.
©Caiaimage/Glow Images
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C O M M U N I CAT I O N So far in this chapter, we’ve described the focus of the activities and interactions among team members as they work to accomplish the team’s purpose. For example, taskwork processes involve members sharing ideas, making recommendations, and acquiring resources from parties outside the team. As another example, teamwork processes involve members planning how to do the team’s work, helping other team members with their work, and saying things to lift team members’ spirits. Now we shift gears a bit and focus our attention on communication, the process by which information and meaning get transferred from a sender to a receiver.54 Much of the work that’s done in a team is accomplished interdependently and involves communication among members, and therefore, the effectiveness of communication plays a crucial role in determining whether there is process gain or process loss.
One way to understand communication is to consider the model depicted in Figure 12-3.55 On the left side of the model is the source or sender of information. In a team that manufactures steel engine parts, for example, the sender might be a team member who wants to share information with another team member. More specifically, the sender might want to let another member know that the team has to work more quickly to reach a difficult performance goal. Generally speaking, senders may use verbal and written language, as well as nonverbal language and cues, to encode the information into a message. Continuing with our example, the sender may choose to quickly wave an arm up and down to convey the idea that the team needs to work faster. This encoded message is transmitted to a receiver, who needs to interpret or decode the message to form an understand- ing of the information it contains. In our example, the message is transmitted visually because the members are working face-to-face, but messages can be transmitted in written form, electronically, or even indirectly through other individuals. With this basic model of communication in mind, we can consider factors that may influence the effectiveness of this process.
COMMUNICATOR ISSUES One important factor that influences the communication process is the communicators themselves. Communicators need to encode and interpret messages, and it turns out that these activities can be major sources of communication problems.56 In our example, the receiver may interpret the arm waving as a message that something is going wrong and that the team needs to slow down to cope with the problem. Of course, this interpretation is the exact opposite of what the sender intended to convey. The communication process may also suffer if the participants lack communication competence, which refers to the skills involved in encoding, transmitting, and receiving messages.57 In fact, it may have already occurred to you that perhaps the sender in our example should have chosen an alternative way to communicate the idea that the team needs to work more quickly. Along the same lines, a receiver who isn’t skilled in listening carefully to a sender’s message may misinterpret a message or miss it altogether.
12.3 What factors influence the communication process in teams?
FIGURE 12-3 The Communication Process
Noise Information
Sender Encoding Message Decoding Receiver
Understanding
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An additional communicator issue relevant to the communication process in teams relates to the emotions and emotional intelligence of team members,58 issues we discussed in Chapter 4 on job satisfaction and Chapter 10 on ability. Emotions can affect how people express themselves and can also cloud their interpretation of information they receive from others.59 Therefore, team members’ ability to regulate their emotions and understand the emotions of others can result in clearer communications that are less prone to misunderstanding. Although you might think that emotions are mostly relevant to communications involving face-to-face interactions among team members, emotions can interfere with electronically mediated communications, and therefore, they are relevant to virtual teams as well.60
NOISE A second factor that influences the communication process is the presence of noise that interferes with the message being transmitted.61 Depending on how the message is being trans- mitted, noise can take on several different forms. In the context of our example, the sender and receiver may be working several feet from one another, and steam from the manufacturing pro- cess may make it difficult to see and appreciate the meaning of the gestures members make. As another example, you’ve probably had difficulty trying to hold a conversation with someone in a restaurant or at a party because of blaring music or crowd noise. If so, you can understand that noise increases the effort that the communicators need to exert to make the communication pro- cess work. The sender has to talk louder and more clearly and perhaps increase the use of alterna- tive means of communicating, such as using hand gestures to help clarify messages. In addition, the receiver has to listen more carefully and think harder to fill in the spaces left by spoken words that are impossible to hear. If one of the two parties to the communication isn’t willing to put in the extra effort to send and receive messages when there is noise, the conversation likely will not last very long.
INFORMATION RICHNESS A third factor that influences the communication process is information richness, which is the amount and depth of information that gets transmitted in a message.62 Messages that are transmitted through face-to-face channels have the highest level of information richness63 because senders convey meaning both through language, and also non- verbally through body language, facial expressions, and tone of voice.64 Face-to-face communi- cation also achieves high information richness because it provides the opportunity for senders and receivers to receive feedback, which allows them to verify and ensure their messages are received and interpreted correctly. At the opposite end of the information richness spectrum are computer-generated reports that consist largely of numbers.65 Although these types of reports may include a lot of information, they’re limited to information that’s quantifiable, and there’s an absence of additional cues that could provide context and meaning to the numbers. A personal written note is a good example of a message with a moderate level of information richness.66 Although the information in a note is limited to the words written down on the page, the choice of words and punctuation can add meaning beyond the words themselves. For example, research shows that recipients of e-mails try to interpret the emotions of the sender from the content of the message, and unfortunately, they often mistakenly perceive the emotion as negative even when it’s not.67
From our description, it may sound as though higher levels of information richness are prefer- able to lower levels. This assertion is true when the situation or task at hand is complex and diffi- cult to understand.68 In this case, the more cues that are available to the receiver, the more likely it is that the message will be understood the way the sender intended it to be. However, the benefits of informa- tion richness may overcomplicate the communi- cation process when the task at hand is relatively simple and straightforward.69 The additional infor- mation that needs to be interpreted by the receiver increases the chance that some of the cues will seem contradictory, and when this happens, receivers may feel like they’re being sent “mixed messages.” In sum- mary, the appropriate level of information richness
Communicator emotions can play a big role in the communication process.
©djile/Shutterstock
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depends on the nature of the team’s situation: The greater the level of complexity in the work being accomplished by the team, the more likely it is that the benefits of information richness outweigh its costs.
NETWORK STRUCTURE So far in our discussion of communication, we’ve kept things simple by focusing on the flow of information between two people—a sender and a receiver. Of course, teams typically have more than just two people, so it’s important at this point to consider the implications of this additional complexity. One way to understand communication in teams com- posed of more than two people is to consider the concept of network structure, which is defined as the pattern of communication that occurs regularly among each member of the team.70
As depicted in Figure 12-4, communication network patterns can be described in terms of centralization, or the degree to which the communication in a network flows through some members rather than others.71 The more communication flows through fewer members of the team, the higher the degree of centralization. You can think of the circles in the figure as team members, and the lines between the circles represent the flow of communication back and forth between the two members. On the left side of the figure is the all channel network structure, which is highly decentralized. Every member can communicate with every other member. Stu- dent teams typically communicate using this type of structure. On the right side of the figure, at the other extreme, is the wheel network structure. This network structure is highly centralized because all the communication flows through a single member. Teams that use a wheel struc- ture often consist of an “official” leader who makes final decisions based on recommendations from members who have expertise in different fields. Although there are many other configura- tions you can easily think of, we also included the circle and Y structures to illustrate examples that fall between the extremes in terms of the level of centralization.
So why are network structures important to learn about? Quite a bit of research on this topic suggests that network structure has important implications for team effectiveness, though those implications depend on the nature of the team’s work.72 On the one hand, when the work is simple and straightforward, a centralized structure tends to result in faster solutions with fewer mistakes. On the other hand, when the work is complex and difficult to understand, a decen- tralized structure tends to be more efficient. Apparently, when work is complex and difficult to understand, the team can benefit if members have the ability to communicate with anyone on the team to get assistance or resolve problems. When the work is simple and easy to understand, the additional communication channels afforded by a decentralized structure become unnec- essary and divert members’ attention from the task. It’s important to mention, however, that
FIGURE 12-4 Communication Network Structures
All Channel Circle WheelY
Higher Member Satisfaction Lower
Higher
Higher
HigherLower
Lower
Lower
Centralization of Communication
E�ectiveness in Simple Tasks
E�ectiveness in Complex Tasks
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members tend to prefer decentralized network structures. That is, they tend to be more satisfied with the team when they are “in the loop,” even though their position in the loop might not help the team perform more effectively.
Communication among team members in organizations has become more decentralized over the past decade or so. One reason for this trend is that social network media have become inexpen- sive and easy to use. User-centered Web 2.0 tools and collaboration software such as Microsoft SharePoint, Jive, and Google Hangouts allow individuals to share information and collaborate in real time, and many companies, such as AT&T, General Electric, FedEx, and Atlanta–based Manheim Auctions, Inc., have developed their own versions of Facebook and LinkedIn for their employees to use internally.73 Individuals working together can use these tools, along with mobile devices to communicate with each other at a moment’s notice. While such technologies provide obvious advantages to virtual teams, teams that work together at the same office also benefit from these tools. A team member who has an inspiration or discovers an important breakthrough over the weekend no longer has to wait until Monday to share it and get feedback from teammates. It also might surprise you to learn that the use of mobile devices for communication among team- mates is especially popular in underdeveloped regions such as Africa, where the number of these devices far exceeds the number of computers. In fact, companies such as Coca-Cola train in the use of mobile devices so that teams that operate in these regions can communicate and interact more effectively.74
Before moving on to the next topic, we should note that the use of technology does not neces- sarily improve the communication process. Some individuals may lack the competence or con- fidence to use these newer means of communication, resulting in their reluctance or inability to participate fully in collaborative efforts that take place using these technologies. As another example, social media reduce the perceived cost of expressing ideas and opinions. This could result in an overabundance of information, and the spread of misinformation and rumors that add noise to communication. The use of Twitter during the Haiti earthquake, for example, led to rumors that contributed to anxiety and uncertainty of those directly and indirectly involved in the disaster.75
T E A M STAT E S A fourth category of team processes that helps teams increase their process gain while minimiz- ing their process loss is less visible to the naked eye. Team states refer to specific types of feelings and thoughts that coalesce in the minds of team members as a consequence of their experience working together. For example, as a consequence of supportive leadership and positive member interactions, team members may develop feelings of psychological safety, or the sense that it is OK to do things that are interpersonally risky, or that expressing opinions and making sugges- tions that challenge the status quo won’t be met with embarrassment and rejection at the hands of teammates.76 Ostracism in a team context can be painful and lead to disengagement and other negative consequences to the individual and to the team.77 Although there are many types of team states that we could review in this chapter, Figure 12-5 summarizes the set of team states we discuss.
COHESION For a number of reasons, such as having trusting relationships, members of teams can develop strong emotional bonds to other members of their team and to the team itself.78 This emotional attachment, which is called cohesion,79 tends to foster high levels of motivation and commitment to the team, and as a consequence, cohesiveness tends to promote higher levels of team performance.80 Of course, it might not surprise you to learn that there is a reciprocal rela- tionship with team performance. That is, the higher team performance that results, in part, from higher cohesion, may, in turn, further enhance team cohesion.81
But is a cohesive team necessarily a good team? According to researchers, the answer to this question is no. In highly cohesive teams, members may try to maintain harmony by striving toward consensus on issues without ever offering, seeking, or seriously considering alternative viewpoints and perspectives. This drive toward conformity at the expense of other team priori- ties is called groupthink and is thought to be associated with feelings of overconfidence about
12.4 What are team states, and what are some examples of the states that fall into this process category?
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the team’s capabilities.82 Groupthink has been blamed for decision-making fiascos in politics as well as in business. Some famous examples include John F. Kennedy’s decision to go forward with the Bay of Pigs invasion of Cuba,83 NASA’s decision to launch the space shuttle Challenger in unusually cold weather,84 and Enron’s board of directors’ decisions to ignore illegal account- ing practices.85
So how do you leverage the benefits of cohesion without taking on the potential costs? One way is to acknowledge that cohesion can potentially have detrimental consequences. A good first step in this regard would be to assess the team’s cohesion using a scale such as the one in our OB Assessments feature. A high score on this sort of assessment indicates the team may be vulnerable to groupthink. A second step in preventing problems associated with cohesion would be to formally institute the role of devil’s advocate. The person filling this role would be respon- sible for evaluating and challenging prevailing points of view in a constructive manner and also bringing in fresh perspectives and ideas to the team. Although the devil’s advocate role could be filled by an existing team member, it’s also possible that the team could bring in an outsider to fill that role.
POTENCY The second team state, potency, refers to the degree to which members believe that the team can be effective across a variety of situations and tasks.86 When a team has high potency, members are confident that their team can perform well, and as a consequence, they focus more of their energy on team tasks and teamwork in hopes of achieving team goals.87 When a team has low potency, members are not as confident about their team, so they begin to question the team’s goals and one another. Ultimately, this reaction can result in members focusing their energies on activities that don’t benefit the team. In the end, research has shown that potency has a strong positive impact on team performance.88 One obvious caveat here is that a team’s confidence can be too high.89 In fact, a strong sense of confidence very early in a team’s exis- tence can decrease the amount of beneficial discussions centered on different positions that are relevant to a team.90 So how does high potency develop in teams? Team members’ confidence in their own capabilities, their trust in other members’ capabilities, and feedback about past per- formance are all likely to play a role.91 Specifically, team potency is promoted in teams in which members are confident in themselves and their teammates and when the team has experienced success in the past.
MENTAL MODELS Mental models refer to the level of common understanding among team members with regard to important aspects of the team and its task.92 A team may have shared mental models with respect to the capabilities that members bring to the team as well as the
FIGURE 12-5 Team States
Cohesion
Potency
Mental Models
Transactive Memory
Team States
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OB ASSESSMENTS
SCORING AND INTERPRETATION If your scores sum up to 45 or above, you feel a strong bond to your team, suggesting that your team may be cohesive. If your scores sum up to less than 45, you feel a weaker bond to your team, suggesting that your team may not be cohesive.
Source: Items adapted from E. R. Crawford. “Team Network Multiplexity, Synergy and Performance.” Doctoral disserta- tion. University of Florida, 2011.
COHESION How cohesive is your team? This assessment is designed to measure cohesion—the strength of the emotional bonds that develop among members of a team. Think of your current student proj- ect team or an important team that you belong to in your job. Answer each question using the response scale provided. Then subtract your answers to the boldfaced questions from 8, with the difference being your new answers for those questions. For example, if your original answer for question 6 was “5,” your new answer is “3” (8 – 5). Then sum up your answers for the eight ques- tions. (Instructors: Assessments on task conflict, relationship conflict, potency, and transactive memory can be found in the PowerPoints in the Connect Library’s Instructor Resources and in the Connect assignments for this chapter.)
1 TO A VERY
SMALL EXTENT
2 TO A SMALL
EXTENT
3 TO SOME EXTENT
4 TO A
REGULAR EXTENT
5 TO A GOOD
EXTENT
6 TO A GREAT
EXTENT
7 TO A VERY
GREAT EXTENT
1. I interact with my teammates, either in person or virtually, to get work done. _______
2. My teammates make me feel positive, upbeat, and energized. I like them. _______
3. I trust my teammates. I can depend on them. _______
4. I dislike my teammates. They tend to annoy me. _______
5. I interact with my teammates socially and can confide in them about personal matters. I consider them to be friends.
_______
6. I have difficult relationships with my teammates. Our personalities clash and there’s tension.
_______
7. I have doubts about my teammates. I feel like I have to monitor them. _______
8. I enjoy working with my teammates. _______
processes the team needs to use to be effective.93 How can these two types of mental models foster team effectiveness? When team members share in their understanding of one another’s capabilities, they’re more likely to know where to go for the help they might need to complete their work. In addition, they should be able to anticipate when another member needs help to do his or her work. When members have a shared understanding of which processes are necessary to help the team be effective, they can carry out these processes efficiently and smoothly. To
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help you understand why this is true, consider what would happen in a team of students who had different understandings about how the team should manage conflict. Few disagreements would get resolved if some of the members believed that direct confrontation was best, whereas others believed that avoidance was best.
TRANSACTIVE MEMORY Whereas mental models refer to the degree to which the knowledge is shared among members, transactive memory refers to how specialized knowledge is distributed among members in a manner that results in an effective system of memory for the team.94 This concept takes into account the idea that not everyone on a team has to possess the same knowl- edge. Instead, team effectiveness requires that members understand when their own specialized knowledge is relevant to the team and how their knowledge should be combined with the special- ized knowledge of other members to accomplish team goals. This of course, requires that team members not only possess useful specialized knowledge, but also meta-knowledge, or knowledge of who knows what.95 If you’ve ever worked on a team that had effective transactive memory, you may have noticed that work got done very efficiently.96 Everyone focused on his or her specialty and what he or she did best, members knew exactly where to go to get information when there were gaps in their knowledge, and the team produced synergistic results. Of course, transactive memory can also be fragile because the memory system depends on each and every member.97 If someone is slow to respond to another member’s request for information or forgets something important, the team’s system of memory fails. Alternatively, if a member of the team leaves, you lose an important node in the memory system.
S U M M A RY: W H Y A R E S O M E T E A M S M O R E T H A N T H E S U M O F T H E I R PA RTS ? So what explains why some teams become more than the sum of their parts (whereas other teams become less)? As shown in Figure 12-6, teams become more than the sum of their parts if their team process achieves process gain rather than process loss. Teams can accomplish that goal by engaging in activities involved in effective taskwork processes, teamwork processes, communica- tion, and team states. Important taskwork processes include creative behavior, decision making, and boundary spanning. Important teamwork processes include transition processes, action pro- cesses, and interpersonal processes. Communication can be enhanced by ensuring that members are competent communicators, noise is minimized, and appropriate levels of information richness and network complexity are chosen. Team states refer to variables such as cohesion, potency, men- tal models, and transactive memory. In contrast to the taskwork processes, teamwork processes, and communication, team states offer less visible and observable reasons for why some teams possess an effective synergy whereas others seem quite inefficient.
H O W I M P O R TA N T A R E T E A M P R O C E S S E S ?
Do team processes affect performance and commitment? Answering this question is somewhat complicated for two reasons. First, as in Chapter 11 on team characteristics and diversity, when we say “performance and commitment,” we are not referring to the performance of individuals or their attachment to the organization. Instead, we are referring to the performance of teams and the degree to which teams are capable of remaining together as ongoing entities. In the jargon of research on teams, this form of commitment is termed “team viability.” Second, as we have described throughout this chapter, there are several different types of team processes that we could consider in our summary. In Figure 12-7, we characterize the relationship among team processes, performance, and commitment by focusing specifically on research involving teamwork processes. The figure therefore represents a summary of existing research on transition processes, action processes, and interpersonal processes.
Research conducted in a wide variety of team settings has shown that teamwork processes have a moderate positive relationship with team performance.98 This same moderate positive
12.5 How do team processes affect team performance and team commitment?
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FIGURE 12-6 Why Are Some Teams More Than the Sum of Their Parts?
Action Processes
Transition Processes
Transition Processes
Action Processes
Interpersonal Processes
Cohesion
Potency
Mental Models
Transactive Memory
Communicator issues
Noise
Information Richness
Network Structure
Boundary Spanning
Decision Making
Creative Behavior
Taskwork Processes
Teamwork Processes
Communication
Team States
Process Loss
Process Gain
relationship appears to hold true, regardless of whether the research examines transition pro- cesses, action processes, or interpersonal processes. Why might the relationships between these different types of processes and team performance be so similarly positive? Apparently, effective- ness with respect to a wide variety of interactions is needed to help teams achieve process gain and, in turn, perform effectively. The interpersonal activities that prepare teams for future work
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FIGURE 12-7 Effects of Teamwork Processes on Performance and Commitment
Teamwork processes have a moderate positive e�ect on Team Performance. That aspect of team process has a stronger e�ect on performance for teams involved in more complex knowledge work rather than less complex work.
Teamwork processes have a strong positive e�ect on Team Commitment. That aspect of team process has a stronger e�ect on commitment for teams involved in more complex knowledge work rather than less complex work.
Represents a strong correlation (around .50 in magnitude).
Represents a moderate correlation (around .30 in magnitude).
Represents a weak correlation (around .10 in magnitude).
Teamwork Processes
Teamwork Processes
Team Performance
Team Commitment
Source: J.A. LePine, R.F. Piccolo, C.L. Jackson, J.E. Mathieu, and J.R. Saul, “A Meta-Analysis of Team Process: Towards a Better Understanding of the Dimensional Structure and Relationships with Team Effectiveness Criteria,” Personnel Psychology 61 (2008), pp. 356–76.
appear to be just as important as those that help members integrate their taskwork and those that build team confidence and a positive team climate. Researchers have also found that the impor- tance of team processes to team performance may be more strongly positive in teams in which there are higher levels of interdependence and complexity.99 This relationship can be explained quite easily: Activities that are meant to improve the integration of team members’ work are sim- ply more important in team contexts in which the work of team members needs to be integrated.
Research also indicates that teamwork processes have a strong positive relationship with team commitment.100 In other words, teams that engage in effective teamwork processes tend to continue to exist together into the future. Why should teamwork and team commitment be so strongly related? One reason is that people tend to be satisfied in teams in which there
are effective interpersonal interac- tions, and as a consequence, they go out of their way to do things that they believe will help the team stick together. Think about a team situation that you’ve been in when everyone shared the same goals for the team, work was coordinated smoothly, and everyone was posi- tive, pleasant to be around, and will- ing to do a fair share of the work. If you’ve ever actually been in a situation like this—and we hope that you have—chances are that you did your best to make sure the team
The Orpheus Chamber Orchestra has been able
to perform effectively over the past 35 years because
of extraordinary levels of teamwork and commit-
ment. While all members of the orchestra help refine
the interpretation and execution of each work
in its repertoire, they also select a concertmaster and
principal players to lead each piece.
©Chester Higgins Jr./New York Times/Redux Pictures
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could continue on together. It’s likely that you worked extra hard to make sure that the team achieved its goals. It’s also likely that you expressed positive sentiments about the team and your desire for the team to remain together. Of course, just the opposite would be true in a team con- text in which members had different goals for the team, coordination was difficult and filled with emotional conflict, and everyone was pessimistic and disagreeable. Members of a team like this would not only find the situation dissatisfying, but would also make it known that they would be very open to a change of scenery.
A P P L I C AT I O N : T R A I N I N G T E A M S
Team-based organizations invest a significant amount of resources into training that’s intended to improve team processes. These types of investments seem to be a smart thing to do, given that team processes have a positive impact on both team performance and team commitment. In this section, we review several different approaches that organizations use to train team processes.
T R A N S P O RTA B L E T E A M WO R K C O M P E T E N C I E S One approach to training teams is to help individual team members develop general competen- cies related to teamwork activities. Table 12-2 shows that this type of training could involve many
12.6 What steps can organiza- tions take to improve team processes?
TABLE 12-2 Teamwork Knowledge, Skills, and Abilities
COMPETENCY DESCRIPTION
Conflict resolution • Can distinguish between desirable and undesirable conflict. • Encourages desirable conflict and discourages undesirable
conflict. • Uses win–win strategies to manage conflict.
Collaborative problem solving
• Can identify situations requiring participative problem solving. • Uses the appropriate degree of participation. • Recognizes and manages obstacles to collaborative problem
solving.
Communications • Understands communication networks. • Communicates openly and supportively. • Listens without making premature evaluations. • Uses active listening techniques. • Can interpret nonverbal messages of others. • Engages in ritual greetings and small talk.
Goal setting and performance management
• Helps establish specific and difficult goals for the team. • Monitors, evaluates, and provides performance-related
feedback.
Planning and task coordination
• Coordinates and synchronizes activities among team members.
• Establishes expectations to ensure proper balance of work- load within the team.
Source: Adapted from M.J. Stevens and M.A. Campion, “The Knowledge, Skill, and Ability Requirements for Teamwork: Implications for Human Resource Management,” Journal of Management 20 (1994), pp. 503–30.
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different forms of knowledge, skills, and abilities.101 Taken together, such knowledge, skills, and abilities are referred to as transportable teamwork competencies.102 This label reflects the fact that trainees can transport what they learn about teamwork from one team context and apply it in another. As a specific example of how this type of training might work, consider a recent study of teamwork training for naval aviators in an advanced pilot training program.103 In this study, one group of pilots went through two days of training, during which they received instruc- tion on preferred communication practices, communicating suggestions and asking questions, and communicating about potential problems. The pilots who went through the training believed that in addition to building teamwork knowledge and skills, the training would increase their mission effectiveness and flight safety. Moreover, crews that were composed of pilots who went through the training were significantly more effective than crews composed of pilots who did not go through the training. Effectiveness was judged by performance in dangerous scenarios, such as ice buildup on the aircraft wings and instructions from the air traffic control tower that were conflicting or ambiguous.
C R O S S -T R A I N I N G A second type of team training involves training members in the duties and responsibilities of their teammates. The idea behind this type of training, which is called cross-training,104 is that team members can develop shared mental models of what’s involved in each of the roles in the team and how the roles fit together to form a system.105 What exactly does cross-training involve? Researchers have found that cross-training may involve instruction at three different levels of depth.106 At the shallowest level, there is personal clarification. With this type of training, mem- bers simply receive information regarding the roles of the other team members. As an example, the highly specialized members of surgical teams—surgeons, anesthesiologists, operating room nurses—might meet so that they can learn about others’ roles and how each contributes to the team’s goal of achieving overall patient well-being.
At the next level of cross-training, there is positional modeling, which involves team members observing how other members perform their roles. In the case of the surgical teams, the surgeons might spend a day shadowing operating room nurses as they perform their duties. The shadowing not only helps the surgeons gain a better understanding of what the job of a nurse entails but also may provide insight into how the activities involved in their respective jobs could be integrated more effectively.
Finally, the deepest level of cross-training involves positional rotation. This type of training gives members actual experience carrying out the responsibilities of their teammates. Although this type of hands-on experience could expand skills of members so that they might actually per- form the duties of their teammates if they had to, the level of training required to achieve profi- ciency or certification in many situations may be prohibitive. For example, because it takes years of specialized training to become a surgeon, it would be impractical to train an operating room nurse to perform this job for the purposes of positional rotation.
T E A M P R O C E S S T R A I N I N G Cross-training and training in transportable teamwork competencies focus on individual experi- ences that promote individual learning. Team process training, in contrast, occurs in the context of a team experience that facilitates the team being able to function and perform more effec- tively as an intact unit. One type of team process training is called action learning. With this type of training, which has been used successfully at companies such as Motorola and General Electric, a team is given a real problem that’s relevant to the organization and then held account- able for analyzing the problem, developing an action plan, and finally carrying out the action plan.107 How does this type of experience develop effective team processes? First, the team receives coaching to help facilitate more effective processes during different phases of the proj- ect. Second, there are meetings during which team members are encouraged to reflect on the
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team processes they’ve used as they worked on the project. In these meetings, the members dis- cuss not only what they observed and learned from their experiences but also what they would do differently in the future.
A second type of team process training involves experience in a team context when there are task demands that highlight the importance of effective teamwork processes. As an example, United Airlines uses pit crew training for its ramp crews.108 Although teams of ramp workers at an airline like United must work with luggage, belt loaders, and baggage carts, there are parallels with the work of NASCAR pit crews that work with tires, jacks, and air guns. Primarily, effective per- formance in both contexts means performing work safely within tight time constraints. Moreover, in both of these contexts, achieving goals requires teamwork, communication, and strict adher- ence to standardized team procedures. The real value of the pit crew training to the ramp crews is that it conveys the lessons of teamwork in a very vivid way. If a team fails to follow procedures and work together when trying to change tires, tools will be misplaced, parts will be dropped, and members will get in one another’s way. As a consequence, a pit stop may last for minutes rather than seconds.
T E A M B U I L D I N G The fourth general type of team process training is called team building. This type of training normally is conducted by a consultant and intended to facilitate the development of team pro- cesses related to goal setting, interpersonal relations, problem solving, and role clarification.109 The ropes course is a very popular task used in team building. It requires team members to work together to traverse wooden beams, ropes, and zip lines while dangling in a harness 20–50 feet in the air. Other examples include laser tag, paintball,110 WhirlyBall (think lacrosse played in bumper cars with a whiffle ball and plastic scoops),111 whitewater rafting, scavenger hunts, and beating drums in a drum circle.112 Team-building activities such as these are hugely popular with organiza- tions of all sizes, and they do seem like an awful lot of fun.
But can you really build effective teams by having them participate in enjoyable activities that seem so unrelated to their jobs? In fact, this was the basis for Senators Byron Dorgan and Ron Wyden’s request that the inspector general of the U.S. Postal Service be fired.113 In their letter to the chairman of the Post Office Board of Governors, they wrote that the inspector general “has spent millions of agency dollars on expensive and silly ‘team building’ exercises, diverting massive resources from the task of finding waste and improving efficiency. . . . On tapes, you see images of public servants dressed up as the Village People, wearing cat costumes, doing a striptease, and par- ticipating in mock trials—all on official time, all at the public’s expense.”114 Although it’s somewhat difficult to gauge the effectiveness of team-building interventions because so many different types of exercises have been used, research has been conducted that provides mixed support for the senators’ claim. The findings of one meta-analysis found that team building did not have a significant effect on team performance when per- formance was defined in terms of productivity.115 However, the research found that team build- ing is most likely to have posi- tive effects for smaller teams and when the exercise empha- sizes the importance of clari- fying role responsibilities. The facilitator of the team-building session also needs to be com- petent in helping members see the connections between the exercise and their work, and also to ensure inclusion and participation of all members.116
Ropes courses are enjoy- able to participants and provide a unique oppor- tunity for team members to get to know each other. But can they really build effective teams?
©Shari Vialpando/Las Cruces Sun-News/AP Images
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K E Y T E R M S
• Team process p. 376 • Process gain p. 376 • Process loss p. 376 • Coordination loss p. 376 • Production blocking p. 377 • Motivational loss p. 377 • Social loafing p. 378 • Taskwork processes p. 378 • Brainstorming p. 378 • Nominal group technique p. 379 • Decision informity p. 381 • Staff validity p. 381 • Hierarchical sensitivity p. 381 • Boundary spanning p. 381 • Ambassador activities p. 381 • Task coordinator activities p. 382 • Scout activities p. 382 • Teamwork processes p. 384 • Transition processes p. 384 • Action processes p. 384 • Interpersonal processes p. 385
• Relationship conflict p. 385 • Task conflict p. 385 • Communication p. 386 • Information richness p. 387 • Network structure p. 388 • Team states p. 389 • Cohesion p. 389 • Groupthink p. 389 • Potency p. 390 • Mental models p. 390 • Transactive memory p. 392 • Transportable teamwork
competencies p. 396 • Cross-training p. 396 • Personal clarification p. 396 • Positional modeling p. 396 • Positional rotation p. 396 • Team process training p. 396 • Action learning p. 396 • Team building p. 397
12.1 Taskwork processes are the activities of team members that relate directly to the accom- plishment of team tasks. Taskwork processes include creative behavior, decision making, and boundary spanning.
12.2 Teamwork processes refer to the interpersonal activities that facilitate the accomplishment of the team’s work but do not directly involve task accomplishment itself. Teamwork processes include transition processes, action processes, and interper- sonal processes.
12.3 Communication is a process through which much of the work in a team is accomplished. Effectiveness in communication can be influenced by the communication competence of the sender and receiver, noise, information richness, and network structure.
12.4 Team states refer to specific types of feelings and thoughts that coalesce in the minds of team members as a consequence of their experience working together. Team states include cohesion, potency, mental models, and transactive memory.
12.5 Teamwork processes have a moderate positive relationship with team performance and a strong positive relationship with team commitment.
12.6 Organizations can use training interventions to improve team processes. Such interven- tions may include training in transportable teamwork competencies, cross-training, team process training, and team building.
TA K E AWAY S
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12.1 Before reading this chapter, how did you define teamwork? How did this definition cor- respond to the definition outlined in this book?
12.2 Think of a team you’ve worked in that performed poorly. Were any of the causes of the poor performance related to the forces that tend to create process loss? If so, which force was most problematic? What steps, if any, did your team take to deal with the problem?
12.3 Think about the team states described in this chapter. If you joined a new team, how long do you think it would take you to get a feel for those team states? Which states would you be able to gauge first? Which would take longer?
12.4 Describe the communication process in a student team of which you’ve been a member. Were there examples of “noise” that detracted from the team members’ ability to com- municate with one another? What was the primary mode of communication among members? Did this mode of communication possess an appropriate level of information richness? Which network structure comes closest to describing the one that the team used to communicate? Was the level of centralization appropriate?
12.5 Which types of teamwork training would your student team benefit most from? What exactly would this training cover? What specific benefits would you expect? What would prevent a team from training itself on this material?
D I S C U S S I O N Q U E S T I O N S
In 2013, Microsoft recognized that the company would have to make some fundamental changes to compete in an industry that rewards fast-paced innovation. At the time, there were several product groups at Microsoft that not only operated in silos, but also viewed each other as competitors for resources and bonuses. An engineer on a product team in one division might discover something that could be useful in another division’s product, but there was no incentive for the engineer to share what was learned with the other product team. To address this problem, and to promote teamwork across the organization, Microsoft replaced the product groups with four broad divisions based on functions that absolutely need to collaborate to get anything done. For example, a team responsible for developing a new Xbox would now likely include engineers from the devices and studio engineering division, the operating systems division, the applications division, and the cloud division.
To support Microsoft’s new structure and emphasis on teamwork, the company redesigned two buildings at corporate headquarters. The corridors and private offices that once filled these buildings were completely torn out. Now the buildings are filled with large open shared rooms called neighborhoods, which teams can customize using stipends provided by the company. There are smaller “focus” rooms and cozy alcoves that employees can use when privacy is needed, but there are no private offices. The buildings are light and airy, and are decorated with art and interesting objects that encourage employees to walk around and to meet and com- municate. Rather than e-mailing, employees are encouraged to engage with each other in person and to connect in ways that are more spontaneous and rich. Employees who may have never met face-to-face may run into each other at one of the coffee bars and discover they’re working on similar projects.
Of course, the redesigned buildings may present the company and its employees with certain challenges. For example, some employees likely have a strong preference for privacy, or may be bothered by the distractions and interruptions from teammates. As another example, limited private space may make it less likely that employees speak up and challenge others on the team for fear that conflict will be exposed. Finally, because employees play an important role in the
C A S E : M I C R O S O F T
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E X E R C I S E : W I L D E R N E S S S U R V I VA L
The purpose of this exercise is to experience team processes during a decision-making task. This exercise uses groups, so your instructor will either assign you to a group or ask you to create your own group. The exercise has the following steps:
12.1 Working individually, read the following scenario: You have gone on a Boundary Waters canoe trip with five friends to upper Minnesota and southern Ontario in the Quetico Provincial Park. Your group has been traveling Sagana- gons Lake to Kawnipi Lake, following through Canyon Falls and Kennebas Falls and Kenny Lake. Fifteen to 18 miles away is the closest road, which is arrived at by paddling through lakes and rivers and usually portaging (taking the land path) around numerous falls. Sagana- gons Lake is impossible to cross in bad weather, generally because of heavy rain. The nearest town is Grand Marais, Minnesota, 60 miles away. That town has plenty of camping outfit- ters but limited medical help, so residents rely on hospitals farther to the south.
The terrain is about 70 percent land and 30 percent water, with small patches of land here and there in between the lakes and rivers. Bears are not uncommon in this region. It’s now mid-May, when the (daytime) temperature ranges from about 25°F to 70°F, often in the same day. Nighttime temperatures can be in the 20s. Rain is frequent during the day (nights, too) and can be life threatening if the temperature is cold. It’s unusual for the weather to stay the same for more than a day or two. Generally, it will rain one day and be warm and clear the next, with a third day windy—and it’s not easy to predict what type of weather will come next. In fact, it may be clear and warm, rainy and windy, all in the same day.
Your group was in two canoes going down the river and came to some rapids. Rather than taking the portage route on land, the group foolishly decided to shoot the rapids by canoe. Unfortunately, everyone fell out of the canoes, and some were banged against the rocks. Luckily, no one was killed, but one person suffered a broken leg, and several others had cuts and bruises. Both canoes were damaged severely. Both were bent in half, one with an open tear of 18 inches, while the other suffered two tears of 12 and 15 inches long. Both have broken gunwales (the upper edges on both sides). You lost the packs that held the tent, most clothing, nearly all the food, cooking equipment, the fuel, the first aid kit, and the flashlight. Your combined possessions include the items shown in the following table.
You had permits to take this trip, but no one knows for sure where you are, and the closest phone is in Grand Marais. You were scheduled back four days from now, so it’s likely a search party would be sent out in about five days (because you could have been delayed a day or so in get- ting back). Just now it has started to drizzle, and it looks like rain will follow. Your task is to figure out how to survive in these unpredictable and possibly harsh conditions until you can get help.
12.2 Working individually, consider how important each of the items in the table would be to you in this situation. Begin with the most important item, giving it a rank of “1,” and wind up with the least important item, giving it a rank of “14.” Put your rankings in Column B.
design and development of their neighborhoods, they may not be as open to changing teams as projects evolve and the needs of the company change.
12.1 Describe how the building redesign is likely to influence process gain and process loss in the teams at Microsoft.
12.2 Describe how the changes at Microsoft have likely influenced team states.
12.3 What are the advantages and disadvantages of the building redesign with respect to com- munication? What can be done to mitigate potential disadvantages?
Sources: T. Halvorson, K. Eichenwald. “Microsoft’s Lost Decade,” Vanity Fair, July 24, 2012, http://www.vanityfair.com/ news/business/2012/08/microsoft-lost-mojo-steve-ballmer; J. Warnick, “Productivity by Design,” Microsoft/Story Labs, https://news.microsoft.com/stories/b16/; and T. Warren, “Microsoft Axes its Controversial Employee-Ranking System,” The Verge, November 12, 2013, http://www.theverge.com/2013/11/12/5094864/microsoft-kills-stack-ranking-internal-structure.
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12.3 In your groups, come to a consensus about the ranking of the items. Put those consen- sus rankings in Column C. Group members should not merely vote or average rankings together. Instead, try to get everyone to more or less agree on the rankings. When someone disagrees, try to listen carefully. When someone feels strongly, that person should attempt to use persuasive techniques to create a consensus.
12.4 The instructor will post the correct answers and provide the reasons for those rankings, according to two experts (Jeff Stemmerman and Ken Gieske of REI Outfitters, both of whom act as guides for many canoe trips in the Boundary Waters region). Put those expert rankings in Column D. At this point, the Individual Error scores in Column A can be computed by taking the absolute difference between Column B and Column D. The Group Error scores in Column E can also be computed by taking the absolute difference between Column C and Column D. Finally, the Persuasion scores can be computed by taking the absolute difference between Column B and Column C. Remember that all of the differ- ences are absolute differences—there should not be any negative numbers in the table. After completing all these computations, fill in the three scores below the table: the Individual Score (total of Column A), the Group Score (total of Column E), and the Persuasion Score (total of Column F). The Persuasion score measures how much you are able to influence other group members to match your thinking.
12.5 The instructor will create a table similar to the one that follows in an Excel file in the class- room or on the board. All groups should provide the instructor with their Average Member Score (the average of all of the Individual Scores for the group), the Group Score, their Best Member Score (the lowest of all the Individual Scores for the group), and that member’s Per- suasion Score (the Persuasion Score for the member who had the lowest Individual Score).
A B C D E F
INDIVIDUAL ERROR (B–D)
YOUR RANKING
GROUP RANKING
EXPERT RANKING
GROUP ERROR (C–D)
PERSUASION SCORE (B–C)
Fanny pack of food (cheese, salami, etc.)
Plastic-covered map of the region
Six personal flotation devices
Two fishing poles (broken)
Set of clothes for three (wet)
One yellow Frisbee
Water purification tablets
Duct tape (one 30-ft roll)
Whiskey (one pint, 180 proof)
Insect repellant (one bottle)
Matches (30, dry)
Parachute cord (35 ft)
Compass
Six sleeping bags (synthetic)
Individual Score: (Total all numbers in Column A): _______
Group Score: (Total all numbers in Column E): _______
Persuasion Score: (Total all numbers in Column F): _______
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12.1 Ilgen, D.R.; D.A. Major; J.R. Hol- lenbeck; and D.J. Sego. “Team Research in the 1990s.” In Leadership Theory and Research: Perspectives and Directions, ed. M.M. Chemers and R. Ayman. New York: Academic Press, 1993, pp. 245–70.
12.2 “Process.” Merriam- Webster online diction- ary (n.d.), http://www .merriam-webster.com/ dictionary/process.
12.3 Bellman, G., and K. Ryan. “Creating an Extraordinary Group.” T&D (September 2010), pp. 56–61.
12.4 Hackman, J.R. “The Design of Work Teams.” In Handbook of Organizational Behavior, ed. J.W. Lorsch. Englewood Cliffs, NJ: Prentice Hall, 1987, pp. 315–42.
12.5 Steiner, I.D. Group Processes and Pro- ductivity. New York: Academic Press, 1972.
12.6 Hackman, “The Design of Work Teams.”
12.7 Lamm, H., and G. Trommsdorff. “Group versus Individual Performance on Tasks Requiring Ideational Proficiency (Brain- storming).” European Journal of Social Psychology 3 (1973), pp. 361–87.
12.8 Hackman, “The Design of Work Teams.”
12.9 Latane, B.; K. Williams; and S. Harkins. “Many
E N D N OT E S
12.6 Fill in a “Yes” for the Process Gain row if the Group Score was lower than the Average Member Score. This score would reflect a circumstance in which the group discussion actually resulted in more accurate decisions—when “the whole” seemed to be more effective than “the sum of its parts.” Fill in a “No” for the Process Gain row if the Group Score was higher than the Average Member Score. In this circumstance, the group discussion actually resulted in less accurate decisions—and the group would have been better off if no talking had occurred.
GROUPS 1 2 3 4 5 6 7 8
Average Member Score
Group Score
Best Member Score
Best Member’s Persuasion
Process Gain? (Yes or No)
12.7 Class discussion (whether in groups or as a class) should center on the following questions: Did most groups tend to achieve process gain in terms of group scores that were better than the average individual scores? Were the group scores usually better than the best member’s score? Why not; where did the groups that lacked synergy tend to go wrong? In other words, what behaviors led to process loss rather than process gain? What role does the best member’s persuasion score play in all of this? Did groups that tended to listen more to the best member (as reflected in lower persuasion numbers) have more frequent instances of process gain?
Source: D. Marcic, J. Selzer, and P. Vail. Organizational Behavior: Experiences and Cases. Cincinnati, OH: South-Western, 2001.
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Hands Make Light the Work: The Causes and Consequences of Social Loafing.” Jour- nal of Personality and Social Psychology 37 (1979), pp. 822–32.
12.10 Ibid.; Jackson, C.L., and J.A. LePine. “Peer Responses to a Team’s Weakest Link: A Test and Extension of LePine and Van Dyne’s Model.” Journal of Applied Psychology 88 (2003), pp. 459–75; and Shep- pard, A. “Productivity Loss in Performance Groups: A Motivation Analysis.” Psycho- logical Bulletin 113 (1993), pp. 67–81.
12.11 Shalley, C.E.; J. Zhou; and G.R. Oldham. “The Effects of Per- sonal and Contextual Characteristics on Creativity: Where Should We Go from Here?” Journal of Management 30 (2004), pp. 933–58.
12.12 Miron-Spektor, E.; M. Erez; and E. Naveh. “The Effect of Conformist and Attentive-to-Detail Members on Team Innovation: Reconcil- ing the Innovation Paradox.” Academy of Management Jour- nal 54 (2011), pp. 740–60.
12.13 Hirst, G.; D. van Knippenberg; and J. Zhou. “A Cross- Level Perspective on Employee Creativity: Goal Orientation, Team Learning Behav- ior, and Individual
Creativity.” Academy of Management Jour- nal 52 (2009), pp. 280–93.
12.14 Kelley, T., and J. Littman. The Art of Innovation. New York: Doubleday, 2001, p. 69.
12.15 Ben-Menahem, S.M.; G. Von Krogh; Z. Erden; and A. Schnei- der. “Coordinating Knowledge Creation in Multidisciplinary Teams: Evidence from Early-Stage Drug Dis- covery.” Academy of Management Journal 59 (2016), pp. 2308–38.
12.16 Osborn, A.F. Applied Imagination (revised ed.). New York: Scribner, 1957.
12.17 Ibid.
12.18 Diehl, M., and W. Stroebe. “Productivity Loss in Brainstorming Groups: Toward a Solution of a Riddle.” Journal of Personality and Social Psychol- ogy 53 (1987), pp. 497–509; and Mullen, B.; C. Johnson; and E. Salas. “Productivity Loss in Brainstorming Groups: A Meta- Analytic Investiga- tion.” Basic and Applied Social Psychology 12 (1991), pp. 3–23.
12.19 Diehl and Stroebe, “Productivity Loss.”
12.20 Sutton, R.I., and A. Hargadon. “Brain- storming Groups in Context: Effectiveness in a Product Design Firm.” Administrative
Science Quarterly 41 (1996), pp. 685–718.
12.21 Kelley and Littman, The Art of Innovation.
12.22 Delbecq, A.L., and A.H. Van de Ven. “A Group Process Model for Identification and Program Planning.” Journal of Applied Behavioral Sciences 7 (1971), pp. 466–92; and Geschka, H.; G.R. Schaude; and H. Schlicksupp. “Modern Techniques for Solving Problems.” Chemical Engineering, August 1973, pp. 91–97.
12.23 Grand, J.A.; M.T. Braun; G. Kuljanin; S.W. J. Kozlowski; and G.T. Chao. “The Dynamics of Team Cognition: A Process-Oriented Theory of Knowledge Emergence in Teams.” Journal of Applied Psychology 101 (2016), pp. 1353–85.
12.24 Bornstein, B.H., and E. Greene. “Jury Decision Making: Implications for and from Psychology.” Current Directions in Psychological Science 20 (2011), pp. 63–67.
12.25 Ibid.
12.26 Salerno, J., and S. Diamond. “The Promise of a Cogni- tive Perspective on Jury Deliberation.” Psychonomic Bulletin & Review 17 (2010), pp. 174–79.
12.27 Lieberman, J.D. “The Utility of Scientific Jury Selection: Still
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Murky after 30 Years.” Current Directions in Psychological Science 20 (2011), pp. 48–52.
12.28 Brehmer, B., and R. Hagafors. “Use of Experts in Complex Decision Making: A Paradigm for the Study of Staff Work.” Organizational Behavior and Human Decision Processes 38 (1986), pp. 181–95; and Ilgen, D.R.; D. Major; J.R. Hollenbeck; and D. Sego. “Raising an Individual Decision Making Model to the Team Level: A New Research Model and Paradigm.” In Team Effectiveness and Decision Making in Organizations, ed. R. Guzzo and E. Salas. San Francisco: Jossey- Bass, 1995, pp. 113–48.
12.29 Hollenbeck, J.R.; A.P.J. Ellis; S.E. Humphrey; A.S. Garza; and D.R. Ilgen. “Asymmetry in Struc- tural Adaptation: The Differential Impact of Centralizing versus Decentralizing Team Decision-Making Structures.” Orga- nizational Behavior and Human Decision Processes 114 (2011), pp. 64–74.
12.30 Hollenbeck, J.R.; J.A. Colquitt; D.R. Ilgen; J.A. LePine; and J. Hedlund. “Accuracy Decomposition and Team Decision Making: Testing Theoretical Boundary
Conditions.” Journal of Applied Psychol- ogy 83 (1998), pp. 494–500; and Hollen- beck, J.R.; D.R. Ilgen; D.J. Sego; J. Hedlund; D.A. Major; and J. Phillips. “Multilevel Theory of Team Deci- sion Making; Decision Performance in Teams Incorporating Dis- tributed Expertise.” Journal of Applied Psychology 80 (1995), pp. 292–316.
12.31 Humphrey, S.E.; J.R. Hollenbeck; C.J. Meyer; and D.R. Ilgen. “Hierarchi- cal Team Decision Making.” Research in Personnel and Human Resources Manage- ment 21 (2002), pp. 175–213.
12.32 Hollenbeck et al., “Multilevel Theory of Team Decision Mak- ing”; and Hollenbeck, J.R.; D.R. Ilgen; J.A. LePine; J.A. Colquitt; and J. Hedlund. “Extending the Multi- level Theory of Team Decision Making: Effects of Feedback and Experience in Hierarchical Teams.” Academy of Manage- ment Journal 41 (1998), pp. 269–82.
12.33 Hollenbeck et al., “Extending the Multi- level Theory.”
12.34 Hedlund, J.; D.R. Ilgen; and J.R. Hol- lenbeck. “Decision Accuracy in Computer- Mediated vs. Face- to-Face Decision Making Teams.” Orga- nizational Behavior
and Human Decision Processes 76 (1998), pp. 30–47.
12.35 Ilgen, D.R.; J.A. LePine; and J.R. Hol- lenbeck. “Effective Decision Making in Multinational Teams.” In New Perspectives in International Industrial– Organizational Psychol- ogy, ed. P.C. Earley and M. Erez. San Francisco: Jossey-Bass, 1997, pp. 377–409.
12.36 Ancona, D.G. “Out- ward Bound: Strate- gies for Team Survival in an Organization.” Academy of Manage- ment Journal 33 (1990), pp. 334–65.
12.37 Ibid.; and Marrone, J.A.; P.E. Tesluk; and J.B. Carson. “A Multilevel Investiga- tion of Antecedents and Consequences of Team Member Boundary-Spanning Behavior.” Academy of Management Journal 50 (2007), pp. 1423–39.
12.38 De Vries, T.A.; F. Walter; G.S. Van Der Vegt; and P.J.M.D. Essens. “Antecedents of Individuals’ Inter- team Coordination: Broad Functional Experiences as a Mixed Blessing.” Academy of Manage- ment Journal 57 (2014), pp. 1334–59.
12.39 LePine, J.A.; R.F. Piccolo; C.L. Jackson; J.E. Mathieu; and J.R. Saul. “A Meta-Analysis of Team Process:
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Toward a Better Understanding of the Dimensional Struc- ture and Relationships with Team Effective- ness Criteria.” Person- nel Psychology 61 (2008), pp. 273–307; and Marks, M.A.; J.E. Mathieu; and S.J. Zac- caro. “A Temporally Based Framework and Taxonomy of Team Processes.” Academy of Management Review 26 (2001), pp. 356–76.
12.40 Marks et al., “A Tem- porally Based Frame- work.” This section on teamwork processes is based largely on their work.
12.41 Fisher, D.M. “Dis- tinguishing between Taskwork and Teamwork Planning in Teams: Relations with Coordination and Interpersonal Processes.” Journal of Applied Psychology 99 (2014), pp. 423–36.
12.42 Eddy, E.R.; S.I Tannenbaum; and J.E. Mathieu. “Helping Teams to Help Themselves: Comparing Two Team-Led Debriefing Methods.” Personnel Psychology 66 (2013), pp. 975–1008; and Villado, A.J., and W. Arthur Jr. “The Com- parative Effect of Sub- jective and Objective After-Action Reviews on Team Performance on a Complex Task.” Journal of Applied Psychology 98 (2013), pp. 514–28.
12.43 Barnes, C.M.; J.R. Hollenbeck; D.T. Wag- ner; D.S. DeRue; J.D. Nahrgang; and K.M. Schwind. “Harmful Help: The Costs of Backing-Up Behavior in Teams.” Journal of Applied Psychology 93 (2008), pp. 529–39; and Hu, J., and R.C. Liden. “Making a Dif- ference in the Team- work: Linking Team Prosocial Motivation to Team Processes and Effectiveness.” Acad- emy of Management Journal 58 (2015), pp. 1102–27.
12.44 Kozlowski, S.W.J., and B.S. Bell. “Work Groups and Teams in Organizations.” In Handbook of Psychol- ogy, Vol. 12: Industrial and Organizational Psychology, ed. W.C. Borman; D.R. Ilgen; and R.J. Klimoski; Hoboken, NJ: Wiley 2003, pp. 333–75.
12.45 Behfar, K.J.; R.S. Peterson; E.A. Man- nix; and W.M.K. Trochim. “The Criti- cal Role of Conflict Resolution in Teams: A Close Look at the Links between Conflict Type, Con- flict Management Strategies, and Team Outcomes.” Journal of Applied Psychology 93 (2008), pp. 170–88; and De Dreu, C.K.W., and L.R. Weingart. “Task versus Rela- tionship Conflict, Team Performance, and Team Member Satisfaction: A Meta- Analysis.” Journal of
Applied Psychology 88 (2003), pp. 741–49.
12.46 Jehn, K. “A Multi- method Examination of the Benefits and Detriments of Intergroup Conflict.” Administrative Science Quarterly 40 (1995), pp. 256–82.
12.47 De Dreu and Wein- gart, “Task Versus Relationship Con- flict”; and DeChurch, L.A., J.R. Mesmer- Magnus, and D. Doty. “Moving Beyond Relationship and Task Conflict: Toward a Process-State Per- spective.” Journal of Applied Psychology 98 (2013), pp. 559–78.
12.48 de Wit, F.R.C.; J.L. Greer; and K.A. Jehn. “The Paradox of Intragroup Conflict: A Meta-Analysis.” Journal of Applied Psychology 97 (2012), pp. 360–90.
12.49 Bradley, B.H.; A.C. Klotz; B.E. Postle- thwaite; and K.G. Brown. “Ready to Rumble: How Team Personality Composi- tion and Task Conflict Interact to Improve Performance.” Journal of Applied Psychology 98 (2013), pp. 385–92.
12.50 Sinha, R.; N.S. Janard- hanan; L.L. Greer; D.E. Conlon; and J.R. Edwards. “Skewed Task Conflicts in Teams: What Happens When a Few Members See More Conflict Than the Rest?”
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12.51 Thompson, L.L. Mak- ing the Team: A Guide for Managers, 2nd ed. Upper Saddle River, NJ: Pearson Prentice Hall, 2004.
12.52 DeChurch, L.A., and M.A. Marks. “Maxi- mizing the Benefits of Task Conflict: The Role of Conflict Management.” The International Journal of Conflict Manage- ment 12 (2001), pp. 4–22; De Dreu and Weingart, “Task Versus Relationship Conflict”; Van de Vliert, E., and M.C. Euwema. “Agreeable- ness and Activeness as Components of Conflict Behaviors.” Journal of Personality and Social Psychol- ogy 66 (1994), pp. 674–87; and Todorova, G.; J. B. Bear; and J.R. Weingart. “Can Conflict Be Energiz- ing? A Study of Task Conflict, Positive Emotions, and Job Satisfaction.” Journal of Applied Psychology 99 (2014), pp. 451–67.
12.53 DeChurch and Marks, “Maximizing the Benefits”; and Van de Vliert and Euwema, “Agreeableness and Activeness.”
12.54 Langan-Fox, J. “Communication in Organizations: Speed, Diversity, Networks, and Influence on Organizational Effectiveness, Human
Health, and Relation- ships.” In Handbook of Industrial, Work, and Organizational Psychology, Vol. 2, ed. N. Anderson, D.S. Ones, and H.K. Sinangil. Thousand Oaks, CA: Sage 2001, pp. 188–205.
12.55 Krone, K.J.; F.M. Jablin; and L.L. Putman. “Com- munication Theory and Organizational Communication: Multiple Perspec- tives.” In Handbook of Organizational Com- munication, ed. F.M. Jablin, K.L. Putman, KH. Roberts, and L.W. Porter. Newbury Park, CA: Sage, 1987; and Shannon, C.E., and W. Weaver. The Mathematical Theory of Communication. Urbana: University of Illinois Press, 1964.
12.56 Ibid.
12.57 Jablin, F.M., and P.M. Sias. “Communication Competence.” In The New Handbook of Organizational Com- munication: Advances in Theory, Research, and Methods, ed. F.M. Jablin and L.L. Putnam. Thousand Oaks, CA: Sage, 2001, pp. 819–64.
12.58 Jordan, P.J., and A.C. Troth. “Managing Emotions During Team Problem Solv- ing: Emotional Intel- ligence and Conflict Resolution.” Human Performance 17 (2004), pp. 195–218.
12.59 Rafaeli, A., and R.I. Sutton. “Expression of Emotion as Part of the Work Role.” Academy of Management Review 12 (1987), pp. 23–37.
12.60 Warkentin, M., and P.M. Beranek. “Train- ing to Improve Virtual Team Communica- tion.” Information Sys- tems Journal 9 (1999), pp. 271–89.
12.61 Krone et al., “Com- munication Theory and Organizational Communication”; and Shannon and Weaver, “The Math- ematical Theory of Communication.”
12.62 Daft, R.L., and R.H. Lengel. “Information Richness: A New Approach to Manage- rial Behavior and Orga- nizational Design.” In Research in Organi- zational Behavior, ed. B.M. Staw and L.L. Cummings. Green- wich, CT: JAI Press, 1984, pp. 191–233.
12.63 Ibid.
12.64 Bonaccio, S.; J. O’Reilly; S. L. O’Sullivan; and F. Chiocchio. “Non- verbal Behavior and Communication in the Workplace: A Review and Agenda for Research.” Journal of Management 42 (2016), pp. 1044–74.
12.65 Daft and Lengel, “Information Richness.”
12.66 Ibid.
12.67 Byron, K. “Carrying Too Heavy a Load?
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The Communication and Miscommunica- tion of Emotion by Email.” Academy of Management Review 33 (2008), pp. 309–27.
12.68 Daft and Lengel, “Information Richness.”
12.69 Ibid.
12.70 Leavitt, H.J. “Some Effects of Certain Communication Pat- terns on Group Per- formance.” Journal of Abnormal and Social Psychology 436 (1951), pp. 38–50.
12.71 Glanzer, M., and R. Glaser. “Techniques for the Study of Group Structure and Behav- ior: II. Empirical Studies of the Effects of Structure in Small Groups.” Psychological Bulletin 58 (1961), pp. 1–27.
12.72 Farace, R.V.; P.R. Monge; and H.M. Rus- sell. “Communication in Micro-Networks.” In Organizational Communication, 2nd ed., ed. F.D. Ferguson and S. Ferguson. New Brunswick, NJ: Trans- action Books, 1988, pp. 365–69.
12.73 Roberts, B. “Develop- ing a Social Business Network.” HR Maga- zine, October 2010, pp. 54–60.
12.74 Davenport, R. “More Than a Game.” T&D, June 2010, pp. 26–29.
12.75 Oh, O.; H.K. Kyo- unghee; and H.R. Rao. “An Exploration
of Social Media in Extreme Events: Rumor Theory and Twitter during the Haiti Earthquake 2010, ICIS 2010 Pro- ceedings. http://aisel .aisnet.org/icis2010_ submissions/231/.
12.76 Edmondson, A. “Psy- chological Safety and Learning Behavior in Work Teams.” Admin- istrative Science Quar- terly 44 (1999), pp. 350–83; Kostopoulos, K., and N. Bozionelos. “Team Exploratory and Exploitative Learning: Psycho- logical Safety, Task Conflict and Team Performance.” Group and Organization Man- agement 36 (2011), pp. 385–415; and Morrison, E.W.; S.L. Wheeler-Smith; and K. Dishan. “Speak- ing up in Groups: A Cross-Level Study of Group Voice Climate and Voice.” Journal of Applied Psychology 96 (2011), pp. 183–91.
12.77 Williams, K.D., and S.A. Nida. “Ostra- cism: Consequences and Coping.” Current Directions in Psycho- logical Science 20 (2011), pp. 71–75.
12.78 Mach, M.; S. Dolan; and S. Tzafrir. “The Differential Effect of Team Members’ Trust on Team Performance: The Mediation Role of Team Cohesion.” Jour- nal of Occupational and Organizational Psychology 83 (2010), pp. 771–94.
12.79 Festinger, L. “Infor- mal Social Communi- cation.” Psychological Review 57 (1950), pp. 271–82.
12.80 Beal, D.J.; R.R. Cohen; M.J. Burke; and C.L. McLendon. “Cohesion and Per- formance in Groups: A Meta-Analytic Clari- fication of Construct Relations.” Journal of Applied Psychology 88 (2003), pp. 989–1004; and Mullen, B., and C. Copper. “The Rela- tion between Group Cohesiveness and Performance: An Inte- gration.” Psychological Bulletin 115 (1994), pp. 210–27.
12.81 Mathieu, J.E.; M.R. Kukenberger; D. D’Innocenzo; and G. Reilly. “Modeling Reciprocal Team Cohesion-Performance Relationships, as Impacted by Shared Leadership and Mem- bers’ Competence.” Journal of Applied Psychology 100 (2015), pp. 713–34.
12.82 Janis, I.L. Victims of Groupthink: A Psycho- logical Study of Foreign Policy Decisions and Fiascoes. Boston, MA: Houghton Mifflin, 1972.
12.83 Ibid.
12.84 Hirokawa, R.; D. Gouran; and A. Martz. “Understand- ing the Sources of Faulty Group Decision Making: A Lesson from the Challenger Disaster.”
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Small Group Behavior 19 (1988), pp. 411–33; Esser, J., and J. Lino- erfer. “Groupthink and the Space Shuttle Challenger Accident: Toward a Quantita- tive Case Analysis.” Journal of Behavioral Decision Making 2 (1989), pp. 167–77; and Moorhead, G.; R. Ference; and C. Neck. “Group Decision Fias- coes Continue: Space Shuttle Challenger and a Revised Groupthink Framework.” Human Relations 44 (1991), pp. 539–50.
12.85 Stephens, J., and P. Behr. “Enron Culture Fed Its Demise.” Washington Post, June 27, 2002, pp. A1–A2.
12.86 Shea, G.P., and R.A. Guzzo. “Groups as Human Resources.” In Research in Personnel and Human Resource Management, Vol. 5, ed. K.M. Rowland and G.R. Ferris. Green- wich, CT: JAI Press, 1987, pp. 323–56.
12.87 Tasa, K.; S. Taggar; and G.H. Seijts. “Development of Collective Efficacy in Teams: A Multilevel and Longitudinal Perspective.” Journal of Applied Psychology 92 (2007), pp. 17–27.
12.88 Gully, S.M.; K.A. Incalcaterra; A. Joshi; and J.M. Beubien. “A Meta- Analysis of Team- Efficacy, Potency, and Performance: Interdependence and Level of Analysis
as Moderators of Observed Relation- ships.” Journal of Applied Psychology 87 (2002), pp. 819–32.
12.89 Rapp, T.L.; B.G. Bachrach; A.A. Rapp; and R. Mullins. “The Role of Team Goal Monitoring in the Curvilinear Relation- ship between Team Efficacy and Team Performance.” Journal of Applied Psychology 99 (2014), pp. 976–87.
12.90 Concalo, J.A.; E. Pol- man; and C. Maslach. “Can Confidence Come Too Soon? Collective Efficacy, Conflict and Group Performance over Time.” Organizational Behavior and Human Decision Processes 113 (2010), pp. 13–24.
12.91 Tasa et al., “Develop- ment of Collective Efficacy in Teams.”
12.92 Klimoski, R.J., and S. Mohammed. “Team Mental Model: Con- struct or Metaphor?” Journal of Manage- ment 20 (1994), pp. 403–37.
12.93 Cannon-Bowers, J.A.; E. Salas; and S.A. Con- verse. “Shared Mental Models in Expert Team Decision Mak- ing.” Individual and Group Decision Making, ed. N.J. Castellan. Hillsdale, NJ: Erlbaum, 1993, pp. 221–46.
12.94 Wegner, D.M. “Transactive Memory: A Contemporary Analysis of the Group Mind.” In Theories of
Group Behavior, ed. B. Mullen and G.R. Goethals. New York: Springer-Verlag, 1986, pp. 185–208.
12.95 Mell, J.N.; Van Knip- penberg, D.; and Van Ginkel, W.P. “The Catalyst Effect: The Impact of Transac- tive Memory System Structure on Team Performance.” Acad- emy of Management Journal 57 (2014), pp. 1154–73.
12.96 Hollingshead, A.B. “Communica- tion, Learning, and Retrieval in Transactive Memory Systems.” Journal of Experimental Social Psychology 34 (1998), pp. 423–42.
12.97 Wegner, “Transactive Memory.”
12.98 LePine et al., “A Meta- Analysis of Team Process.”
12.99 Barrick, M.R.; B.H. Bradley; A.L. Kristoff Brown; and A.E. Col- bert. “The Moderating Role of Top Manage- ment Team Interdepen- dence: Implications for Real Teams and Work- ing Groups.” Academy of Management Journal 50 (2007), pp. 544–57; and Vashidi, D.R.; P.A. Bamberger; and M. Erez. “Can Surgical Teams Ever Learn? The Role of Coordina- tion, Complexity, and Transitivity in Action Team Learning.” Acad- emy of Management Journal 56 (2013), pp. 945–71.
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12.100 LePine et al., “A Meta-Analysis of Team Process.”
12.101 Stevens, M.J., and M.A. Campion. “The Knowledge, Skill, and Ability Require- ments for Teamwork: Implications for Human Resource Management.” Journal of Manage- ment 20 (1994), pp. 503–30.
12.102 Ibid.; and Ellis, A.P.J.; B. Bell; R.E. Ployhart; J.R. Hol- lenbeck; and D.R. Ilgen. “An Evaluation of Generic Team- work Skills Training with Action Teams: Effects on Cognitive and Skill-Based Outcomes.” Person- nel Psychology 58 (2005), pp. 641–72.
12.103 Stout, R.J.; E. Salas; and J.E. Fowlkes. “Enhancing Team- work in Complex Environments through Team Train- ing.” Group Dynam- ics: Theory, Research, and Practice 1 (1997), pp. 169–82.
12.104 Volpe, C.E.; J.A. Cannon-Bowers; E. Salas; and P.E. Spector. “The Impact of Cross-Training on Team Functioning: An Empirical Inves- tigation.” Human Factors 38 (1996), pp. 87–100.
12.105 Marks, M.A.; M.J. Sabella; C.S. Burke; and S.J. Zaccaro. “The Impact of
Cross-Training on Team Effectiveness.” Journal of Applied Psychology 87 (2002), pp. 3–13.
12.106 Blickensderfer, E.; J.A. Cannon-Bowers; and E. Salas. “Cross Training and Team Performance.” In Making Decisions Under Stress: Implica- tions for Individual and Team Training, ed. J.A. Cannon- Bowers and E. Salas. Washington, DC: APA Press, 1998, pp. 299–311.
12.107 Dotlich, D., and J. Noel. Active Learn- ing: How the World’s Top Companies Are Recreating Their Leaders and Them- selves. San Francisco: Jossey-Bass, 1998; and Marquardt, M. “Harnessing the Power of Action Learning.” T&D 58 (June 2004), pp. 26–32.
12.108 Carey, S. “Racing to Improve; United Airlines Employees Go to School for Pit Crews to Boost Teamwork, Speed.” The Wall Street Journal, Eastern Edition, March 24, 2006, p. B1.
12.109 Salas, E.; D. Bozell; B. Mullen; and J.E. Driskell. “The Effect of Team Building on Performance: An Integration.” Small Group Research 30 (1999), pp. 309–29.
12.110 Berman, D. “Zap! Pow! Splat!; Laser Tag and Paintball Can Enhance Team- work, Communica- tions, and Planning.” BusinessWeek, February 9, 1998, p. ENT22. ProQuest Database.
12.111 Rasor, M. “Got Game? Bring It On: WhirlyBall Helps Workers Develop Drive, Teamwork.” Knight Ridder Tri- bune Business News, April 3, 2006, p. 1. ProQuest Database.
12.112 Regan, M.P. “Team Players: From Drums to Daring Getaways, Workers Embark on Team-Building Exer- cises.” Gainesville Sun, February 15, 2004, pp. 5G, 6G.
12.113 Ballard, T.N. “Postal IG under Fire for Unusual ‘Team- Building’ Activities.” Government Executive .com, 2003, http:// www.govexec .com/dailyfed/0503/ 050203t1.htm.
12.114 Source: Dorgan, B.L., and R. Widen. “Letter to Chairman Fine- man,” May 1, 2003.
12.115 Salas et al., “The Effect of Team Building.”
12.116 Chang, W.W. “Is the Group Activity Food or Poison in a Multi- cultural Classroom?” T&D (April 2010), pp. 34–37.
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13
LEARNING GOALS
13.1 What is leadership, and what role does power play in leadership? 13.2 What are the different types of power that leaders possess, and when can they use those types most
effectively?
13.3 What behaviors do leaders exhibit when trying to influence others, and which of these is most effective?
13.4 What is organizational politics, and when is political behavior most likely to occur? 13.5 How do leaders use their power and influence to resolve conflicts in the workplace? 13.6 What are the ways in which leaders negotiate in the workplace? 13.7 How do power and influence affect job performance and organizational commitment?
After reading this chapter, you should be able to answer the following questions:
Leadership: Power and Negotiation
INDIVIDUAL OUTCOMES
INDIVIDUAL MECHANISMS
INDIVIDUAL CHARACTERISTICS
ORGANIZATIONAL MECHANISMS
Organizational Culture
Organizational Structure
Motivation
Trust, Justice, & Ethics
Teams: Characteristics &
Diversity Learning &
Decision Making
Stress
Leadership: Power &
Negotiation
Job Satisfaction
Leadership: Styles &
Behaviors
Organizational Commitment
Job Performance
GROUP MECHANISMS
Teams: Characteristics &
Diversity
Teams: Processes &
Communication
Ability
Personality & Cultural Values
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W hen you go to work, you likely have the expec- tation that somebody will be there to tell you what to do. You will, in essence, have a man-
ager or a leader that will, at a minimum, set some broad roles and goals for you and be there to influence your behavior. Zappos, the online shoe and accessory retailer based in Las Vegas, is attempting to turn that notion on its head. For the past three years, CEO Tony Hsieh, 43, has been constantly pushing his organization toward 100% self-management through the use of “holocracy.” What exactly does that mean? One thing it means for sure: Who is leading and where the power resides in the organization doesn’t look like many other companies. The general idea behind holocracy is a work environment in which there are no bosses, politics, or power; employees are supposed to figure out largely on their own what to work on and how to get their work done. It has not been an easy transition.
Zappos was purchased by Amazon.com for $1.2 billion in 2009 and has largely been left to operate on its own ever since. One of the reasons Amazon CEO Jeff Bezos has kept a hands-off approach is Zappos’s unique approach to leadership and managing people. Holocracy
is pushing the boundaries of “unique” for a company the size of Zappos. For eight straight years, Zappos was a fixture on Fortune’s Best Companies to Work For survey. In 2016, they fell off the list scoring exceptionally low on questions like, “Do employees think management has a clear view of where the organization is going and how to get there?”
Zappos employees are self-organized into “circles” instead of traditional work teams. Each circle has a “lead link” employee who somewhat manages the process, but the lead link has no formal authority and can’t tell anyone what to do. The employees in each circle decide their own roles and responsibilities through a number of different gatherings known as “governance meetings,” and so far Zappos has over 300 circles dealing with everything from customer service to social media. One interesting result of Zappos instituting a “leaderless” organization is not the fact that there are no formal leaders, but that many employees have noticed a real lack of leadership. In essence, when operating a self-managing environment everyone has to learn good leadership and influence skills in order for the organization to be successful.
ZAPPOS
©Gina Ferazzi/Los Angeles Times/Getty Images
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L E A D E R S H I P : P O W E R A N D N E G OT I AT I O N
As evidenced by Zappos, leadership in organizations is complicated. It is a mix of factors that has to do with ideas, behaviors, positions, and so forth. Leaders within organizations can make a huge difference to the success of a company or group. Much of this success depends on how effectively they use power and influence in achieving their objectives. Depending on whether you like the idea of “holocracy,” you could read the opening example and anoint Tony Hsieh as a great leader and try to simply adopt his behavioral examples to follow in his footsteps. However, things aren’t quite that simple. As we’ll discover in this and the next chapter, there are many different types of leaders, many of whom can excel, given the right circumstances.
There is perhaps no subject that’s written about more in business circles than the topic of leadership. A quick search on Amazon.com for “leadership” will generate a list of more than 200,000 books! That number doesn’t even count the myriad videos, calendars, audio recordings, and other items—all designed to help people become better leaders. Given all the interest in this topic, a natural question becomes, “What exactly is a leader?” We define leadership as the use of power and influence to direct the activities of followers toward goal achievement.1 That direction can affect followers’ interpretation of events, the organization of their work activities, their com- mitment to key goals, their relationships with other followers, and their access to cooperation and support from other work units.2 This chapter focuses on how leaders get the power and influence they use to direct others and the ways in which power and influence are utilized in organizations, including through negotiation. Chapter 14 will focus on how leaders actually use their power and influence to help followers achieve their goals.
W H Y A R E S O M E L E A D E R S M O R E P O W E R F U L T H A N OT H E R S ?
What exactly comes to mind when you think of the term “power”? Does it raise a positive or negative image for you? Certainly it’s easy to think of leaders who have used power for what we would consider good purposes, but it’s just as easy to think of leaders who have used power for unethical or immoral purposes. For now, try not to focus on how leaders use power but instead on how they acquire it. Power can be defined as the ability to influence the behavior of others and resist unwanted influence in return.3 Note that this definition gives us a couple of key points to think about. First, just because a person has the ability to influence others does not mean they will actually choose to do so. In many organizations, the most powerful employees don’t even realize how influential they could be! Second, in addition to influencing others, power can be seen as the ability to resist the influence attempts of others.4 This resistance could come in the form of the simple voicing of a dissenting opinion, the refusal to perform a specific behavior, or the organization of an opposing group of coworkers.5 Sometimes leaders need to resist the influ- ence of other leaders or higher-ups to do what’s best for their own unit. Other times leaders need to resist the influence of their own employees to avoid being a “pushover” when employees try to go their own way.
AC Q U I R I N G P OW E R Think about the people you currently work with or have worked with in the past, or think of stu- dents who are involved in many of the same activities you are. Do any of those people seem to have especially high levels of power, meaning that they have the ability to influence your behavior? What is it that gives them that power? In some cases, their power may come from some formal position (e.g., supervisor, team leader, teaching assistant, resident advisor). However, sometimes the most powerful people we know lack any sort of formal authority. It turns out that power in
13.1 What is leadership, and what role does power play in leadership?
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organizations can come from a number of different sources. Specifically, there are five major types of power that can be grouped along two dimensions: organizational power and personal power.6 These types of power are illustrated in Figure 13-1.
ORGANIZATIONAL POWER The three types of organizational power derive primarily from a person’s position within the organization. These types of power are considered more formal in nature.7 Legitimate power derives from a position of authority inside the organization and is sometimes referred to as “formal authority.” People with legitimate power have some title—some term on an organizational chart or on their door that says, “Look, I’m supposed to have influ- ence over you.” Those with legitimate power have the understood right to ask others to do things that are considered within the scope of their authority. When managers ask an employee to stay late to work on a project, work on one task instead of another, or work faster, they are exercising legitimate power. The higher up in an organization a person is, the more legitimate power they generally possess. Fortune magazine provides rankings of the most powerful women in business. As shown in Table 13-1, all of those women possess legitimate power, in that they hold a title that affords them the ability to influence others.
Legitimate power does have its limits, however. It doesn’t generally give a person the right to ask employees to do something outside the scope of their jobs or roles within the organization. For example, if a manager asked an employee to wash their car or mow their lawn, it would likely be seen as an inappropriate request. As we’ll see later in this chapter, there’s a big difference between having legitimate power and using it effectively. When used ineffectively, legitimate power can be a very weak form of power. In our opening example, Tony Hsieh is trying to set things up so that employees in Zappos aren’t influenced by legitimate power at all, but rather by worthwhile ideas and data.
The next two forms of organizational power are somewhat intertwined with legitimate power. Reward power exists when someone has control over the resources or rewards another person wants. For example, managers generally have control over raises, performance evaluations, awards, more desirable job assignments, and the resources an employee might require to perform a job effectively. Those with reward power have the ability to influence others if those being influenced
13.2 What are the different types of power that leaders possess, and when can they use those types most effectively?
FIGURE 13-1 Types of Power
Organizational Power
Personal Power
Legitimate Power
Reward Power
Coercive Power
Expert Power
Referent Power
Ability to Influence
Others
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believe they will get the rewards by behaving in a certain way. Coercive power exists when a person has control over punishments in an organization. Coercive power operates primarily on the prin- ciple of fear. It exists when one person believes that another has the ability to punish him or her and is willing to use that power. For example, a manager might have the right to fire, demote, sus- pend, or lower the pay of an employee. Sometimes the limitations of a manager to impose punish- ments are formally spelled out in an organization. However, in many instances, managers have a considerable amount of leeway in this regard. Coercive power is generally regarded as a poor form of power to use regularly, because it tends to result in negative feelings toward those that wield it.
PERSONAL POWER Of course, the women in Table 13-1 don’t appear on that list just because they have some formal title that affords them the ability to reward and punish others. There’s something else about them, as people, that provides them additional capabilities to influence oth- ers. Personal forms of power capture that “something else.” Expert power derives from a person’s expertise, skill, or knowledge on which others depend. When people have a track record of high performance, the ability to solve problems, or specific knowledge that’s necessary to accomplish tasks, they’re more likely to be able to influence other people who need that expertise. Consider a lone programmer who knows how to operate a piece of antiquated software, a machinist who was recently trained to operate a new piece of equipment, or the only engineer who has experience working on a specific type of project. All of these individuals will have a degree of expert power because of what they individually bring to the organization. Angela Ahrendts, SVP at Apple, appears in Table 13-1 largely because of her expert power. Apple CEO Tim Cook hired Ahrendts, who was then CEO of the British fashion company Burberry, because he felt that her expertise in
TABLE 13-1 Fortune’s 15 Most Powerful Women in Business in 2014
NAME COMPANY POSITION AGE
1 Mary Barra General Motors CEO 54
2 Indra Nooyi PepsiCo Chairman and CEO 60
3 Marilyn Hewson Lockheed Martin Chairman, CEO, and President 62
4 Ginni Rometty IBM Chairman, CEO, and President 59
5 Abigail Johnson Fidelity Investments CEO and President 54
6 Sheryl Sandberg Facebook COO 47
7 Meg Whitman Hewlett-Packard CEO and President 60
8 Phebe Novakovic General Dynamics Chairman and CEO 58
9 Irene Rosenfeld Mondelez International Chairman and CEO 63
10 Safra Katz Oracle Co-CEO 54
11 Lynn Good Duke Energy Chairman, CEO, and president 57
12 Helena Foulkes CVS/pharmacy President 52
13 Ruth Porat Google, Alphabet CFO 58
14 Angela Ahrendts Apple SVP, Retail and Online Stores 56
15 Cathy Engelbert Deloitte LLP CEO 51
Source: K. Bellstrom, E. Fry, B. Kowitt, M. Lev-Ram, L. Rao, J. Reingold, A. Vandermey, P. Wahba, J. Wieczner, and V. Zarya. “The 50 Most Powerful Women,” Fortune 174, no. 4 (September 15, 2016); pp. 82–99.
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retail could help deliver a vision for the Apple Store. Ahrendts said, “I told him, ‘I’m not a techie,’ and he said, ‘I think we have 10,000 of those, you are supposed to be here.’”8 There is perhaps no place where expert power comes into play more than in Silicon Valley, where it’s widely per- ceived that the best leaders are those with significant technological experience and expertise. At Intel, senior advisor and former CEO Andy Grove “fostered a culture in which ‘knowledge power’ would trump ‘position power.’ Anyone could challenge anyone else’s idea, so long as it was about the idea and not the person—and so long as you were ready for the demand ‘Prove it.’”9
Referent power exists when others have a desire to identify and be associated with a person. This desire is generally derived from affection, admiration, or loyalty toward a specific individual.10 Although our focus is on individuals within organizations, there are many examples of political lead- ers, celebrities, and sports figures who seem to possess high levels of referent power. Barack Obama, Angelina Jolie, and Peyton Manning all possess referent power to some degree because others want to emulate them. The same could be said of leaders in organizations who possess a good reputation, attractive personal qualities, or a certain level of charisma. Tony Hsieh, as detailed in our opening chapter case, clearly wields referent power. The people who surround him constantly refer to fact that he lives and breathes the idea employee satisfaction is the key to success in business.11
Of course, it’s possible for a person to possess all of the forms of power at the same time. In fact, the most powerful leaders—like those in Table 13-1—have bases of power that include all five dimensions. From an employee’s perspective, it’s sometimes difficult to gauge what form of power is most important. Why, exactly, do you do what your boss asks you to do? Is it because the boss has the formal right to provide direction, because the boss controls your evaluations, or because you admire and like the boss? Many times, we don’t know exactly what type of power leaders pos- sess until they attempt to use it. Generally speaking, the personal forms of power are more strongly related to organizational commitment and job performance than are the organizational forms. If you think about the authorities for whom you worked the hardest, they probably possessed some form of expertise and charisma, rather than just an ability to reward and punish. That’s not to say though that organizational forms of power cannot successfully achieve objectives at times. Some useful guidelines for wielding each of the forms of power can be found in Table 13-2.
TABLE 13-2 Guidelines for Using Power
TYPE OF POWER GUIDELINES FOR USE
Legitimate • Stay within the rights your position holds. • Communicate your request politely. • Make sure you describe the purpose of your request.
Reward • Propose rewards that are attractive. • Only offer what you can follow through on. • Be clear on exactly what you are offering a reward for.
Coercive • Warn people prior to giving punishment. • Make sure punishment is fair relative to the nature of the lack of
compliance. • Follow through quickly and without discrimination or bias.
Expert • Put forth data or other evidence to support your proposal. • Communicate why the request is important and the justification for it. • Be consistent, thoughtful, and honest about requests.
Referent • Follow through on commitments. • Do things for others even when not required to do so. • Support and uphold others when called for.
Source: For a more detailed list of guidelines and discussion, see Gary A. Yukl, Leadership in Organizations, 7th edition © 2010
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CONTINGENCY FACTORS There are certain situations in organizations that are likely to increase or decrease the degree to which leaders can use their power to influence others. Most of these situations revolve around the idea that the more other employees depend on a person, the more powerful that person becomes. A person can have high levels of expert and referent power, but if he or she works alone and performs tasks that nobody sees, the ability to influ- ence others is greatly reduced. That being said, there are four factors that have an effect on the strength of a person’s ability to use power to influence others.12 These factors are summa- rized in Table 13-3. Substitutability is the degree to which people have alternatives in accessing resources. Leaders that control resources to which no one else has access can use their power to gain greater influence. Discretion is the degree to which managers have the right to make decisions on their own. If managers are forced to follow organizational policies and rules, their ability to inf luence others is reduced. Centrality represents how important a person’s job is and how many people depend on that person to accomplish their tasks. Leaders who perform criti- cal tasks and interact with others regularly have a greater ability to use their power to influence others. Visibility is how aware others are of a leader’s power and position. If everyone knows that a leader has a certain level of power, the ability to use that power to influence others is likely to be high.
MWH, a $1 billion revenue Broomfield, Colorado, engineering firm specializing in water proj- ects, asked 500 employees in all of its departments where they went when they came up with a new idea. This would allow MWH to determine who possessed certain types of expertise and who offered the most help to employees. In a sense, MWH is identifying the individuals in the organi- zation who are likely to have the most power.13 Companies such as Microsoft, Pfizer, and Google are increasingly using such networking maps to understand the power structures in their organiza- tions and who holds the most influence.14
U S I N G I N F LU E N C E Up until now, we’ve discussed the types of power leaders possess and when their opportunities to use that power will grow or diminish. Now we turn to the specific strategies that leaders use to translate that power into actual influence.
Recall that having power increases our ability to influence behavior. It doesn’t mean that we will use or exert that power. Influence is the use of an actual behavior that causes behavioral or attitudinal changes in others.15 There are two important aspects of influence to keep in mind. First, influence can be seen as directional. It most frequently occurs downward (managers influ- encing employees) but can also be lateral (peers influencing peers) or upward (employees influ- encing managers). Second, influence is all relative. The absolute power of the “influencer” and “influencee” isn’t as important as the disparity between them.16 To see how to increase your ability to influence even before you begin, see this chapter’s OB at the Bookstore feature.
13.3 What behaviors do leaders exhibit when trying to influ- ence others, and which of these is most effective?
TABLE 13-3 The Contingencies of Power
CONTINGENCY LEADER’S ABILITY TO INFLUENCE OTHERS INCREASES WHEN . . .
Substitutability There are no substitutes for the rewards or resources the leader controls.
Centrality The leader’s role is important and interdependent with others in the organization.
Discretion The leader has the freedom to make his or her own decisions without being restrained by organizational rules.
Visibility Others know about the leader and the resources he or she can provide.
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OB AT THE BOOKSTORE PRE-SUASION by Robert Cialdini (New York: Simon & Schuster, 2016)
Advanced trainees were often allowed to accompany and observe an old pro who was conduct- ing business. I always jumped at those opportunities because I wanted to see if I could register not just what practitioners in general did to succeed but also what the best of them did. One such practice quickly surfaced that shook my assumptions. I’d expected that the aces of their professions would spend more time than the inferior performers developing the specifics of their requests for change: the clarity, logic, and desirable features of them. That’s not what I found.
With those words, Robert Cialdini sets the stage for the reasoning behind the follow up to his groundbreaking book Influence, which remains (after 30 years) the #1 bestseller on consumer behavior at Amazon. Ask yourself a question, do you normally read OB at the Bookstore boxes all the way through, or do you generally read only the quote and move on? If it’s the latter, I’d ask you to think about why you are still reading. Cialdini might argue that it’s because the quote above leaves you with a bit of a mystery or an unfinished explanation. There is no clear conclusion and this has a tendency to “magnetize” your attention while waiting for the answer. In essence, it sets the stage for you to be influenced.
This is the main premise of Cialdini’s book Pre-Suasion. Influ- ence is not only about employing the right tactics of persuasion—it’s also about doing them at the right time. The book focuses on walk- ing the reader through the research on how to make people ready to be influenced, namely—what attracts people’s attention and what
mental processes incline us to change our minds or behavior. So what exactly was it that allowed those high achievers in the opening quote to separate themselves from everyone else? Cialdini says, “The highest achievers spent more time crafting what they did and said before making a request. They set about their mission as skilled gardeners who know that even the finest seeds will not take root in stony soil or bear fullest fruit in poorly prepared ground.”
©Roberts Publishing Services
INFLUENCE TACTICS Leaders depend on a number of tactics to cause behavioral or attitudinal changes in others. In fact, there are at least 10 types of tactics that leaders can use to try to influ- ence others.17 These tactics and their general levels of effectiveness are illustrated in Figure 13-2.18 The four most effective tactics have been shown to be rational persuasion, inspirational appeals, consultation, and collaboration. Rational persuasion is the use of logical arguments and hard facts to show the target that the request is a worthwhile one. Research shows that rational persuasion is most effective when it helps show that the proposal is important and feasible.19 Rational persua- sion is particularly important because it’s the only tactic that is consistently successful in the case of upward influence.20 At Alphabet, for example, data is all-important. CEO Larry Page has been willing to change his mind in the face of conflicting information. Douglas Merrill, former Google CIO, said, “Larry would wander around the engineers and he would see a product being developed, and sometimes he would say, ‘Oh I don’t like that,’ but the engineers would get some data to back up their idea, and the amazing thing was that Larry was fine to be wrong. As long as the data sup- ported them, he was okay with it. And that was such an incredibly morale-boosting interaction for engineers.”21 An inspirational appeal is a tactic designed to appeal to the target’s values and ideals,
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Source: Adapted from S. Lee, S. Han, M. Cheong, S.L. Kim and S. Yun, “How Do I Get My Way? A Meta-Analytic Review of Research on Influence Tactics,” Leadership Quarterly 28 (2017), pp. 210–28.
FIGURE 13-2 Influence Tactics and Their Effectiveness
Most E�ective Moderately E�ective Least E�ective
Rational Persuasion
Consultation
Inspirational Appeals
Collaboration
Ingratiation
Personal Appeals
ExchangeApprising
Pressure
Coalitions
thereby creating an emotional or attitudinal reaction. To use this tactic effectively, leaders must have insight into what kinds of things are important to the target. Tony Hsieh does his best to use inspira- tional appeals when talking about the benefits of holocracy to the larger group at Zappos and what he believes it can bring the company.22 Consultation occurs when the target is allowed to participate in deciding how to carry out or implement a request. This tactic increases commitment from the tar- get, who now has a stake in seeing that his or her opinions are valued. A leader uses collaboration by attempting to make it easier for the target to complete the request. Collaboration could involve the leader helping complete the task, providing required resources, or removing obstacles that make task completion difficult.23 Ginni Rometty, CEO of IBM and number 4 in Table 13-1, is known inside and outside the organization for her collaborative tactics. Rometty and IBM entered into an alliance with its biggest rival, Apple, to bring IBM services to Apple’s iOS platform. Apple CEO Tim Cook says of Rommety, “I think she’s wicked smart. She has an incredible ability to partner and can make tough decisions and do so decisively. And she sees things as they really are.”24
Three other influence tactics are sometimes effective and sometimes not. Ingratiation is the use of favors, compliments, or friendly behavior to make the target feel better about the influ- encer. You might more commonly hear this referred to as “sucking up,” especially when used in
an upward influence sense. Ingratiation has been shown to be more effective when used as a long-term strategy and not nearly as effective when used immediately prior to making an influence attempt.25 Per- sonal appeals occur when the requestor asks for something based on personal friendship or loyalty. The stronger the friendship, the more success- ful the attempt is likely to be. As described in our OB Inter- nationally feature, there are cul- tural differences when it comes to this kind of an appeal just as there are with other influence
Larry Page (left), CEO of Alphabet (parent company
of Google), is known for his willingness to allow
employees to use rational persuasion (data) to
change his mind on an issue.
©Paul Sakuma/AP Images
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When Google hired Kai-Fu Lee to be vice president of engineering and president of Google Greater China, with a more than $10 million compensation package, the company was counting on his continued ability to use the same skills that allowed him to be a huge success at Microsoft. What was it that Lee possessed that made him so worthwhile? Lee argues that it was his under- standing of guanxi (pronounced gwan-she). In the Chinese culture, guanxi (literally translated “relationships”) is the ability to influence decisions by creating obligations between parties based on personal relationships.
Guanxi represents a relationship between two people that involves both sentiment and obliga- tion. Individuals with high levels of guanxi tend to be tied together on the basis of shared institu- tions such as kinship, places of birth, schools attended, and past working relationships. Although such shared institutions might “get someone in the door” in the United States, in China, they become a higher form of obligation. Influence through guanxi just happens—it’s an unspoken obligation that must be addressed. It is, in a sense, a blend of formal and personal relationships that exists at a different level than in the United States. There is no such thing as a “business only” relationship, and the expectation is simply that if you take, you must also give back. Lee (who left Google) and his guanxi were so great that Google’s Chinese product managers insisted that their business cards read “Special Assistant to Kai-Fu Lee” and that their desks be placed within 100 feet of his so that they could effectively do business outside the company.
Evidence suggests that companies like Microsoft and Google that possess guanxi have higher levels of performance. American managers who go to work overseas must be conscious of these different types of relationships and expectations. In addition to understanding the power of guanxi, evidence suggests that Chinese managers from different areas (e.g., Hong Kong, Taiwan, mainland China) have different beliefs when it comes to which influence tactics are the most effective. There is also recent evidence that the norms around guanxi in China are changing with time. If anything, it goes to show that managers need to be acutely aware of both general and more specific cultural differences when trying to influence others in China.
OB INTERNATIONALLY
Sources: S. Levy, In the Plex: How Google Thinks, Works, and Shapes Our Lives; (New York: Simon & Schuster, 2011); R. Buderi, “The Talent Magnet,” Fast Company 106 (2006), pp. 80–84; C.C. Chen, Y.R. Chen; and K. Xin, “Guanxi Practices and Trust in Management: A Procedural Justice Perspective,” Organization Science 15 (2004), pp. 200–9; R.Y.J. Chua, “Building Effective Business Relationships in China,” MIT Sloan Management Review 53 (2012), pp. 27–33; P.P. Fu., T.K. Peng, J.C. Kennedy, and G. Yukl, “A Comparison of Chinese Managers in Hong Kong, Taiwan, and Main- land China,” Organizational Dynamics 33 (2003), pp. 32–46; Y. Luo., Y. Huang, and S.L. Wang, “Guanxi and Organiza- tional Performance: A Meta-Analysis,” Management and Organization Review 8 (2011), pp. 139–72; M. Wong, “Guanxi Management as Complex Adaptive Systems: A Case Study of Taiwanese ODI in China,” Journal of Business Ethics 91 (2010), pp. 419–32; M.M. Yang, Gifts, Favors, and Banquets: The Art of Social Relationships in China; (Ithaca, NY: Cornell University Press, 1994); and X. Zhang, N. Li, and B.T. Harris, “Putting Non-Work Ties to Work: The Case of Guanxi in Supervisor-Subordinate Relationships,” Leadership Quarterly 26 (2015), p. 37.
attempts. Finally, apprising occurs when the requestor clearly explains why performing the request will benefit the target personally. It differs from rational persuasion in that it focuses solely on the benefit to the target as opposed to simple logic or benefits to the group or organization.
The three tactics that have been shown to be least effective and could result in resistance from the target are pressure, coalitions, and exchange tactics. Of course, this statement doesn’t mean that they aren’t used or can’t be effective at times. Pressure is the use of coercive power through threats and demands. As we’ve discussed previously, such coercion is a poor way to influ- ence others and may only bring benefits over the short term. The next tactic is the formation of coalitions. Coalitions occur when the influencer enlists other people to help influence the target.
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These people could be peers, subordinates, or one of the target’s superiors. Coalitions are gener- ally used in combination with one of the other tactics. For instance, if rational persuasion is not strong enough, the influencer might bring in another person to show that that person agrees with the logic of the argument. Finally, an exchange tactic is used when the requestor offers a reward or resource to the target in return for performing a request. This type of request requires that the requestor have something of value to offer.26 It differs from apprising in that the benefit is some- thing that the requestor gives to the target and not something that simply results from the action.27 Although exchange “can” be effective at times, it is very unpredictable and can even end up have a negative effect on influence.
Two points should be noted about leaders’ use of influence tactics. First, influence tactics tend to be most successful when used in combination.28 Many tactics have some limitations or weaknesses that can be overcome using other tactics. Second, the influence tactics that tend to be most successful are those that are “softer” in nature. Rational persuasion, consultation, inspirational appeals, and collaboration take advantage of personal rather than organizational forms of power. Leaders that are the most effective at influencing others will generally rely on the softer tactics, make appropriate requests, and ensure the tactics they use match the types of power they have. Mondelez International CEO Irene Rosenfeld (number 9 in Table 13-1) is known for her ability to persuade. A former executive with Kraft said, “When she is trying to persuade you of something, she will be relentless in coming back with facts and showing you she has the support of other people, she will be totally emotionally and intellectually commit- ted to her idea.”29
RESPONSES TO INFLUENCE TACTICS As illustrated in Figure 13-3, there are three possible responses people have to influence tactics.30 Internalization occurs when the target of influence agrees with and becomes committed to the influence request.31 For a leader, this is the best out- come because it results in employees putting forth the greatest level of effort in accomplishing what they are asked to do. Internalization reflects a shift in both the behaviors and the attitudes of employees. Proper use of the personal forms of power are most likely to result in internaliza- tion. Compliance occurs when targets of influence are willing to do what the leader asks, but they do it with a degree of ambivalence. Compliance reflects a shift in the behaviors of employees but not their attitudes. This behavior is the most common response to influence attempts in orga- nizations, because anyone with some degree of power who makes a reasonable request is likely to achieve compliance. That response allows leaders to accomplish their purpose, but it doesn’t bring about the highest levels of employee effort and dedication. Proper use of organizational forms of power are, at best, most likely to result in compliance. Still, it’s clearly preferable to resistance, which occurs when the target refuses to perform the influence request and puts forth an effort to avoid having to do it. Employee resistance could come in the form of making excuses, trying to influence the requestor in return, or simply refusing to carry out the request. Resistance is most likely when the influencer’s power is low relative to the target or when the request itself is inappropriate or unreasonable.32
P OW E R A N D I N F LU E N C E I N AC T I O N In this section, we look at two major areas in which leaders have the ability to use power to influ- ence others. The first is through navigating the environment of organizational politics within the organization. The second is through using power and influence to help solve conflicts within the organization. As it turns out, it’s easy for these two areas to coincide.
ORGANIZATIONAL POLITICS If there was perhaps one term that had a more negative con- notation than power, it might be politics. You’ve probably had people give you career advice such as, “Stay away from office politics” or “Avoid being seen as political.” The truth is that you can’t escape it; politics are a fact of life in organizations!33 Although you might hear company execu- tives, such as former Vodafone CEO Sir Christopher Gent, make statements such as, “[When I was CEO], we were mercifully free of company politics and blame culture,”34 you can be pretty sure that wasn’t actually the case—especially given that England’s Vodafone is one of the world’s largest mobile phone operators. Tony Hsieh, our chapter’s opening example, was hoping that the
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shift to holocracy would either get rid of or at least diminish internal politics at Zappos. However, a number of managers worked hard to try to hang on to the power they had in the old organiza- tional structure and that involved using politics.35 Whether we like it or not, organizations are filled with independent, goal-driven individuals who must take into account the possible actions and desires of others to get what they want.36
Organizational politics can be seen as actions by individuals that are directed toward the goal of furthering their own self-interests.37 Although there’s generally a negative perception of politics, it’s important to note that this definition doesn’t imply that furthering one’s self- interests is necessarily in opposition to the company’s interests. A leader needs to be able to push his or her own ideas and inf luence others through the use of organizational politics. Research has recently supported the notion that, to be effective, leaders must have a certain degree of political skill.38 In fact, universities and some organizations such as Becton, Dick- inson, and Company—a leading global medical technology company based in Franklin Lakes, New Jersey—are training their future leaders to be attuned to their political environment and develop their political skill.39
Political skill is the ability to effectively understand others at work and use that knowledge to influence others in ways that enhance personal and/or organizational objectives.40 Research indicates that there are four dimensions of political skill.41 Networking ability is an adeptness at identifying and developing diverse contacts. Social astuteness is the tendency to observe others and accurately interpret their behavior. Interpersonal influence involves having an unassuming and convincing personal style that’s flexible enough to adapt to different situations. Apparent sincerity involves appearing to others to have high levels of honesty and genuineness. Taken together, these four skills provide a distinct advantage when navigating the political environ- ments in organizations. Individuals who exhibit these types of skills have higher ratings of both task performance and organizational citizenship behaviors from others, especially when the social requirements of the job are high.42 To see where you stand on political skill, see our OB Assessments feature.
Although organizational politics can lead to positive outcomes, people’s perceptions of politics are generally negative. This perception is certainly understandable, as anytime someone acts in a self-serving manner, it’s potentially to the detriment of others.43 In a highly charged political environment in which people are trying to capture resources and influence one another toward potentially opposing goals, it’s only natural that some employees will feel stress about the uncer- tainty they face at work. Environments that are perceived as extremely political have been shown
13.4 What is organizational politics, and when is politi- cal behavior most likely to occur?
FIGURE 13-3 Responses to Influence Attempts
Most E�ective
Least E�ective
Internalization Target agrees with and becomes
committed to request (Behavioral and attitudinal changes)
Compliance Target is willing to perform request,
but does so with indi�erence (Behavioral change only)
Resistance Target is opposed to request and
attempts to avoid doing it (No change in behavior or attitude)
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OB ASSESSMENTS
SCORING AND INTERPRETATION: If your scores sum up to 23 or more, you have a higher than average level of political skill. If your scores sum up to 22 or less, you have a below average level of political skill.
Source: For a more detailed measure of political skill, see G.R. Ferris, D.C. Treadway, R.W. Kolodinsky, W.A. Hochwarter, C.J. Kacmar, C. Douglas, and D.D. Frink, “Development and Validation of the Political Skill Inventory,” Journal of Management 31 (2005), pp. 126–52.
POLITICAL SKILL How much political skill do you have? This assessment is designed to broadly measure political skill. Please write a number next to each statement that indicates the extent to which it accu- rately describes your attitude toward work and people while you were on the job. Alternatively, consider the statements in reference to school rather than work. Answer each question using the response scale provided. Then sum up your answers for each of the dimensions. (Instructors: Assessments on expert power, referent power, need for power, and self-monitoring can be found in the PowerPoints in the Connect Library’s Instructor Resources and in the Connect assign- ments for this chapter.)
1 STRONGLY DISAGREE
2 DISAGREE
3 NEUTRAL
4 AGREE
5 STRONGLY AGREE
1. It’s easy for me to picture myself in other people’s shoes. _________
2. I can find similarities and talk about things easily with others. _________
3. I’m good at understanding the thoughts and feelings of others. _________
4. Most people feel relaxed around me when I want them to feel that way. _________
5. I can make people feel good after having a conversation with them. _________
6. I almost always find a way to make a connection with people I spend time around.
_________
to cause lower job satisfaction, increased strain, lower job performance (both task and extra-role related), higher turnover intentions, and lower organizational commitment among employees.44 In fact, high levels of organizational politics have even been shown to be detrimental to company performance as a whole.45
As a result, organizations (and leaders) do their best to minimize the perceptions of self-serving behaviors that are associated with organizational politics. This goal requires identifying the partic- ular organizational circumstances that cause politics to thrive. As illustrated in Figure 13-4, orga- nizational politics are driven by both personal characteristics and organizational characteristics.46 Some employees have a strong need for power that provides them with an incentive to engage in political behaviors. Still others have “Machiavellian” tendencies, meaning that they’re willing to manipulate and deceive others to acquire power.47
Organizational factors that are the most likely to increase politics are those that raise the level of uncertainty in the environment. When people are uncertain about an outcome or event,
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they’ll generally act in ways that help reduce that uncertainty. A number of events can trig- ger uncertainty, including limited or changing resources, ambiguity in role requirements, high performance pressures, or unclear performance evaluation measures.48 A lack of employee par- ticipation in decision making has also been found to increase perceptions of organizational politics.49 These sorts of organizational factors generally have a much stronger effect on political behavior than do personal factors. That’s actually a good thing for organizations, because it may be easier to clarify performance measures and roles than it is to change the personal character- istics of a workforce.
CONFLICT RESOLUTION In addition to using their power to shape office politics, leaders can use their influence in the context of conflict resolution. Conflict arises when two or more indi- viduals perceive that their goals are in opposition (see Chapter 12 on team processes and commu- nication for more discussion of such issues). Conflict and politics are clearly intertwined, because the pursuit of one’s own self-interests often breeds conflict in others. When conflict arises in orga- nizations, leaders have the ability to use their power and influence to resolve it. As illustrated in Figure 13-5, there are five different styles a leader can use when handling conflict, each of which is appropriate in different circumstances.50 The five styles can be viewed as combinations of two separate factors: how assertive leaders want to be in pursuing their own goals and how cooperative they are with regard to the concerns of others.
Competing (high assertiveness, low cooperation) occurs when one party attempts to get his or her own goals met without concern for the other party’s results. It could be considered a win–lose approach to conflict management. Competing occurs most often when one party has high levels
13.5 How do leaders use their power and influence to resolve conflicts in the workplace?
FIGURE 13-4 The Causes and Consequences of Organizational Politics
• Need for power • Machiavellianism
• Lack of participation in decision
• Limited or changing resources • Ambiguity in roles • High performance pressure • Unclear performance evaluations
Personal Characteristics
Organizational Characteristics
Organizational Politics
• Decreased job satisfaction • Decreased organizational
• Decreased task performance • Increased strain
Negative Employee Reactions
making
commitment
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of organizational power and can use legitimate or coercive power to settle the conflict. It also gen- erally involves the hard forms of influence, such as pressure or coalitions. Although this strategy for resolving conflict might get the result initially, it won’t win a leader many friends, given the negative reactions that tend to accompany such tactics. It’s best used in situations in which the leader knows he or she is right and a quick decision needs to be made.
Avoiding (low assertiveness, low cooperation) occurs when one party wants to remain neu- tral, stay away from conf lict, or postpone the conf lict to gather information or let things cool down. Avoiding usually results in an unfavorable result for everyone, including the organiza- tion, and may result in negative feelings toward the leader. Most important, avoiding never really resolves the conf lict. Accommodating (low assertiveness, high cooperation) occurs when one party gives in to the other and acts in a completely unselfish way. Leaders will typically use an accommodating strategy when the issue is really not that important to them but is very important to the other party. It’s also an important strategy to think about when the leader has less power than the other party. If leaders know they are going to lose the conf lict due to their lack of power anyway, it might be a better long-term strategy to give in to the demands from the other party.
Collaboration (high assertiveness, high cooperation) occurs when both parties work together to maximize outcomes. Collaboration is seen as a win–win form of conflict resolution. Collabo- ration is generally regarded as the most effective form of conflict resolution, especially in refer- ence to task-oriented rather than personal conflicts.51 However, it’s also the most difficult to come by because it requires full sharing of information by both parties, a full discussion of con- cerns, relatively equal power between parties, and a lot of time investment to arrive at a resolu- tion. But this style also results in the best outcomes and reactions from both parties. Compromise (moderate assertiveness, moderate cooperation) occurs when conflict is resolved through give- and-take concessions. Compromise is perhaps the most common form of conflict resolution, whereby each party’s losses are offset by gains and vice versa. It is seen as an easy form of reso- lution, maintains relations between parties, and generally results in favorable evaluations for the leader.52 Women are also more likely to use compromise as a tactic in comparison to men, whereas men are more likely than women to use competing as a tactic.53 Recent research shows that individuals with higher levels of emotional intelligence (see Chapter 10) are more likely to adopt constructive forms of conflict management (the green areas of Figure 13-5).54 Like most things when it comes to power and influence, it’s not as much a function of which style you use, but rather when you use it that determines success. It is a mistake to think that one specific style
FIGURE 13-5 Styles of Conflict Resolution
U n
a ss
e rt
iv e
A ss
e rt
iv e
C o
n ce
rn f
o r
O w
n O
u tc
o m
e s
Competing (win—lose)
Avoiding (lose—lose)
Accommodating (lose—win)
Collaborating (win—win)
Compromise
CooperativeUncooperative
Concern for Other’s Outcomes
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is superior to another—research has shown that whether a certain style is effective is dependent on lots of situational issues.55 For instance, trust (see Chapter 7) is extremely important when using the more cooperative forms of conflict resolution, especially when there is a larger degree of conflict.56 For more discussion of when to use the various conflict resolution strategies, see Table 13-4.
One example of conflict resolution is the ongoing battles that Uber faces with the cities that it tries to do business in.57 Early in its existence, Uber took a very one-sided competing approach when moving into new markets—moving in without formal permission, developing clientele, and then using that sup- port to fend off city councils or opposition groups that might have an issue with the way Uber does busi- ness. Ex-CEO Travis Kalanick called the approach “principled confrontation.”58 While this approach worked (and might have been necessary for Uber’s success) in some instances, Kalanick recognizes that it’s not the best approach for all situations. One reason is that the battles it causes can be extraor- dinarily time consuming for a company growing as quickly as Uber has been. David Plouffe, Uber’s senior vice president of policy and strategy, says, “We are trying to intensify our partnerships with cit- ies, intensify discussions, intensify engagement. We are looking for good ways to compromise.”59 The
TABLE 13-4 When to Use the Various Conflict Resolution Styles
RESOLUTION STYLE USE DURING THE FOLLOWING SITUATIONS:
Competing • A quick decision is really important. • When you believe you are right, other solutions are wrong, and there
is no middle-ground. • When someone will try to leverage your unwillingness to compete
against you.
Avoiding • If the issue is not as important as others from a timing perspective. • When there is no acceptable alternative and you can’t win. • Arriving at a solution will cause more strife than a solution is worth. • When people’s emotions are running high and backing off might help
to come up with a resolution. • If acquiring more information would help to arrive at a better solution.
Collaborating • When both parties have legitimate concerns and compromise won’t solve the problem.
• When different perspectives or learning might help arrive at a better alternative.
• To build commitment by working together toward a consensus decision.
Accommodating • If you arrive at the conclusion that your choice or solution is wrong or that an alternative is better.
• When you want to show that you are reasonable and/or to build up credit with others.
• When others care substantially more about the outcome than you do and the ongoing relationship is important.
• If you are going to lose and want to preserve your dignity.
Compromising • When a strong approach isn’t worth the damage it might cause. • If both parties are committed to their choices and they are equally
powerful. • Arriving at an interim solution allows you to examine a complicated
issue more fully. • When time pressure doesn’t allow for a protracted resolution. • When other approaches haven’t worked.
Source: Adapted from K.W. Thomas, “Toward Multi-Dimensional Values in Teaching: The Example of Conflict Behav- iors,” Academy of Management Review (1977), pp. 484–90.
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new approach seems to be work- ing in the city of Portland, where city officials and Uber negoti- ated for more than a year. Frus- trated, Uber officials went ahead and launched without an agree- ment in place and the city filed a lawsuit against the company. Uber has since stopped business while city officials rewrite rules on taxis that prohibit companies like Uber from operating—the first time Uber has ever relented in such a case.60
N E G OT I AT I O N S There is perhaps no better place for leaders to use their power, influence, political, and con- flict resolution skills than when conducting negotiations. Negotiation is a process in which two or more interdependent individuals discuss and attempt to come to an agreement about their different preferences. Negotiations can take place inside the organization or when dealing with organizational outsiders. Negotiations can involve settling a contract dispute between labor and management, determining a purchasing price for products, haggling over a performance review rating, or determining the starting salary for a new employee. Clearly, negotiations are a critical part of organizational life, for both leaders and employees. Successful leaders are good at nego- tiating outcomes of all types, and doing it well requires knowledge of power structures, how best to influence the other party, and awareness of their own biases in decision making.61 For a great example of what it’s like trying to negotiate with multiple parties at the same time, see this chap- ter’s OB Screen feature.
NEGOTIATION STRATEGIES There are two general strategies leaders must choose between when it comes to negotiations: distributive bargaining and integrative bargaining.62 Distributive bargaining involves win–lose negotiating over a “fixed-pie” of resources.63 That is, when one per- son gains, the other person loses (also known as a “zero-sum” condition). The classic example of a negotiation with distributive bargaining is the purchase of a car. When you walk into a car dealership, there’s a stated price on the side of the car that’s known to be negotiable. In these circumstances though, every dollar you save is a dollar the dealership loses. Similarly, every dollar the salesperson negotiates for, you lose. Distributive bargaining is similar in nature to a compet- ing approach to conflict resolution. Some of the most visible negotiations that have traditionally been approached with a distributive bargaining tactic are union–management labor negotiations. Whether it be automobile manufacturers, airlines, or nurses at hospitals, the negotiations for these sessions are typically viewed through a win–lose lens.
Many negotiations within organizations, including labor–management sessions, are begin- ning to occur with a more integrative bargaining strategy. Integrative bargaining is aimed at accomplishing a win–win scenario.64 It involves the use of problem solving and mutual respect to achieve an outcome that’s satisfying for both parties. Leaders who thoroughly understand the conflict resolution style of collaboration are likely to thrive in these types of negotiations. In gen- eral, integrative bargaining is a preferable strategy whenever possible because it allows a long-term relationship to form between the parties (because neither side feels like the loser). In addition, integrative bargaining has a tendency to produce a higher level of outcome favorability when both parties’ views are considered, compared with distributive bargaining.65 As an example, picture a married couple negotiating where to go on vacation.66 The husband wants to go to stay in a log cabin in the mountains while the wife wants to stay at a luxury resort on the beach. This would seem to be a case of distributive bargaining—one party will win and the other will lose! After
13.6 What are the ways in which leaders negotiate in the workplace?
Ex-Uber CEO Travis Kalanick has adapted the
company’s conflict resolu- tion strategies over time
to be more compromising and collaboration oriented.
©Bloomberg/Getty Images
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OB ON SCREEN BRIDGE OF SPIES
There is no deal for Abel unless we get Powers and Pryor. Do you understand? It is arranged for tomorrow morning. It will not happen unless we get two men. Those two men. Two. Two. If there is no deal . . . your boss must tell the Soviets.
With those words, James Donovan (Tom Hanks) adopts a competing conflict resolution style after all other efforts to negotiate have broken down in Bridge of Spies (Dir: Steven Spielberg, Walt Disney, 2015). Based on a true story, the movie primarily revolves around Donovan’s negotiation of the release and trade of Francis Gary Powers (Austin Stowell), a U.S. Air Force pilot whose U-2 spy plane was shot down over the Soviet Union in 1960, for Rudolph Abel (Mark Rylance), a convicted Soviet KGB spy. The secret negotiations are organized by the CIA and Donovan (an insurance lawyer) is somewhat of an unlikely choice to represent the U.S., but is chosen due to his having defended Abel in court when no other lawyers would take his case.
Donovan is sent to East Berlin right in the midst of the Berlin Wall being constructed to meet with a KGB officer in the Soviet Embassy. Complicating matters is the fact that the German Dem- ocratic Republic (GDR), not yet “recognized” by the United States, is trying to convince Donovan to swap Abel for an American graduate student named Frederic Pryor (Will Rogers) who was arrested in East Germany. The GDR hopes that through the exchange, they will gain recognition from the U.S. government. So the Soviets want Abel, the CIA wants Powers, and Donovan wants Pryor but doesn’t care about the political underpinnings of East Germany. The second half of the movie shows Donovan use various conflict resolution strategies in order to arrange a deal where Abel is switched for both Powers and Pryor at the same time. Against the CIA’s wishes, Donovan decides to play hardball with East Germany and potentially risk the entire negotiation, but he realizes he is making a decision about an issue with great value to the United States and that he’s negotiating against partners who will take advantage of him if he displays weakness.
©Moviestore collection Ltd/Alamy
much discussion though, the couple finds that location (in the mountains) is more important to the husband and style of accommodations (luxury hotel) is more important to the wife. The two can come to a solution that provides mutually beneficial outcomes to both parties—a luxury hotel in the mountains. However, not all situations are appropriate for integrative bargaining. Integra- tive bargaining is most appropriate in situations in which multiple outcomes are possible, there
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is an adequate level of trust, and parties are willing to be flexible.67 Please don’t approach your next used car purchase with an integra- tive bargaining strategy!
It’s possible for leaders to develop a repu- tation for how they negotiate over time, mak- ing it more difficult for them to approach new negotiations in a different way. For instance, Charlie Ergen, cofounder and board chair of Dish Network, has a reputation for approach- ing negotiations with a distributive (win–lose) framework. One analyst commented, “The only way Charlie can succeed is if he wins. There aren’t too many situations where people would get themselves into it with Ergen.” His reputation “makes it hard for people to partner
with him.” Ergen (a one-time professional gambler) says that he sees business as a card game where he likes to “play the odds.”68
NEGOTIATION STAGES Regardless of the strategy used, the actual negotiating process typically goes through a series of stages:69
• Preparation. Arguably the single most important stage of the negotiating process, during prepa- ration each party determines what its goals are for the negotiation and whether or not the other party has anything to offer. Each party also should determine its best alternative to a negotiated agreement, or BATNA. A BATNA describes each negotiator’s bottom line. In other words, at what point are you willing to walk away? At the BATNA point, a negotiator is actually better off not negotiating at all. In their seminal book, Getting to Yes: Negotiating Without Giving In, Roger Fisher and William Ury state that people’s BATNA is the standard by which all proposed agree- ments should be measured.70
• Exchanging information. In this nonconfrontational process, each party makes a case for its position and attempts to put all favorable information on the table. Each party also informs the other party how it has arrived at the conclusions it has and which issues it believes are impor- tant. When the other party is unfamiliar, this stage likely contains active listening and lots of questions. Studies show that successful negotiators ask many questions and gather much infor- mation during this stage.71
• Bargaining. This stage is the one most people imagine when they hear the term “negotiation.” Success at this stage depends mightily on how well the previous two stages have proceeded. The goal is for each party to walk away feeling like it has gained something of value (regardless of the actual bargaining strategy). During this stage, both parties likely must make concessions and give up something to get something in return. To the degree that each party keeps the other party’s concerns and motives in mind, this stage will go much more smoothly.
• Closing and commitment. This stage entails the process of formalizing an agreement reached during the previous stage. For large, complex negotiations such as labor contracts established between an organization and a union, it can be a very long stage. For others, such as a negotia- tion between two coworkers about how they might handle their future relationship, no formal documents or contracts are required, and a simple handshake might suffice. Ideally, there will be no issues or misconceptions about the agreement arrived at during the bargaining stage. If they do exist, the negotiation process can regress back into the bargaining stage, and the process starts all over again. The stage also might be simply a recognition that the parties ended at an impasse with no agreement! In this case, several options are still available, as we discuss in the Application section at the end of this chapter.
Charlie Ergen, cofounder and chairman of the board
for Dish Network, has developed a reputation as
a ruthless negotiator.
©Brian Brainerd/Getty Images
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NEGOTIATOR BIASES It is important for negotiators to be aware of their biases when approaching a negotiation. While there are numerous biases to be aware of, the perceived power relationship between the parties and negotiator emotions are two of the most important. Research has shown that when negotiators perceive themselves as being in a position of power in comparison to the other party, they are more likely to demand more, concede less, and behave more aggressively during negotiations—in other words, they are likely to take a more distributive approach to negotiations.72 Similarly, when two parties perceive themselves as relatively equal in power, they take a more integrative approach to negotiations.73 As we all know, negotiations are generally a very emotion-laden affair, and negotiator emotions can also play a large role in the ability of two parties to reach successful conclusions during bargaining.74 (See Chapter 10 for a discussion of the ability of individuals to control their emotions during stressful times such as negotiations.) As it turns out, both positive and negative emotions can influence negotiation success in a negative way.75 Positive emotions, while they generally lead to a more integrative bargaining approach, can also cause negotiators to be overconfident and make decisions too quickly. Negative emotions tend to lead toward a more distributive bargaining approach and lower judgment accuracy.76
S U M M A RY: W H Y A R E S O M E L E A D E R S M O R E P OW E R F U L T H A N OT H E R S ? So what explains why some leaders are more powerful and influential than others? As shown in Figure 13-6, answering that question requires an understanding of the types of power lead- ers acquire, what kinds of influence tactics they have available to them, and how they can use that influence to alter the attitudes and behaviors of their employees. Leaders acquire both organizational (legitimate, reward, coercive) and personal (expert, referent) forms of power, which gives them the ability to influence others. They can then use that power to influence others through influence tactics. Those tactics can help achieve organizational goals or may be applied more specifically to dealing with organizational politics, conflict resolution, or negotia- tion situations. In the end, there are three possible responses to influence attempts: internaliza- tion, compliance, and resistance. The effectiveness of those attempts will depend on leaders’ skill at performing them and how well they match the forms of power they have with the appro- priate types of influence.
H O W I M P O R TA N T A R E P O W E R A N D I N F LU E N C E ?
How important is a leader’s ability to use power and influence? In other words, does a leader’s power and influence correlate with job performance and organizational commitment? Figure 13-7 summarizes the research evidence linking power and influence to job performance and organiza- tional commitment. The figure reveals that power and influence are moderately correlated with job performance. When used correctly and focused on task-related outcomes, power and influ- ence can create internalization in workers, such that they are both behaviorally and attitudinally focused on high levels of task performance. That internalization also helps increase citizenship behavior, whereas the compliance associated with power and influence can decrease counterpro- ductive behavior. These job performance benefits make sense given that the effective use of power and influence can increase the motivation levels of employees, whereas the ineffective use of power and influence can increase the stress levels of employees.
Figure 13-7 also reveals that power and influence are moderately related to organizational commitment. When a leader draws on personal sources of power, such as expert power and referent power, a stronger emotional bond can be created with the employee, boosting affec- tive commitment. The effective use of such power should increase job satisfaction and a sense of trust in the leader, all of which are associated with increased commitment levels. As with
13.7 How do power and influence affect job perfor- mance and organizational commitment?
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FIGURE 13-6 Why Are Some Leaders More Powerful Than Others?
Organizational Power
Personal Power
Legitimate Power
Reward Power
Coercive Power
Expert Power
Referent Power
Ability to Influence
Others
Most E�ective Moderately E�ective
Influence Tactics
Least E�ective
Rational Persuasion
Consultation
Inspirational Appeals
Collaboration
Ingratiation
Personal Appeals
ExchangeApprising
Pressure
Coalitions
Applied in order to: • Achieve organizational goals • Navigate the political environment • Engage in conflict resolution • Negotiate outcomes
Most E�ective
Least E�ective
Internalization
Compliance
Resistance
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FIGURE 13-7 Effects of Power and Influence on Performance and Commitment
Sources: R.T. Sparrowe, B.W. Soetjipto, and M.L. Kraimer, “Do Leaders’ Influence Tactics Relate to Members’ Helping Behavior? It Depends on the Quality of the Relationship,” Academy of Management Journal 49 (2006), pp. 1194–1208; G. Yukl, H. Kim, and C.M. Falbe, “Antecedents of Influence Outcomes,” Journal of Applied Psychology 81 (1996), pp. 309–17; and P.P. Carson, K.D. Carson, and C.W. Rowe, “Social Power Bases: A Meta-Analytic Examination of Inter- relationships and Outcomes,” Journal of Applied Social Psychology 23 (1993), pp. 1150–69.
Power and influence have a moderate positive e�ect on Performance. When used e�ectively, they can increase internalization and compliance, which facilitates Task Performance. The internalization and compliance facilitated by power and influence can also increase Citizenship Behavior and decrease Counterproductive Behavior.
Power and influence can have a moderate positive e�ect on Commitment. The use of personal forms of power, such as expert and referent, is associated with increased A�ective Commitment. It should be noted, however, that more organizational forms of power, or hard influence tactics, can decrease that form of commitment. Not much is known about the impact of power and influence on Continuance Commitment or Normative Commitment.
Represents a strong correlation (around .50 in magnitude).
Represents a moderate correlation (around .30 in magnitude).
Represents a weak correlation (around .10 in magnitude).
Power and Influence
Power and Influence
Job Performance
Organizational Commitment
job performance, however, it’s important to note that an ineffective use of power can also decrease commitment levels. In particular, repeated uses of coercive power or repeated reliance on hard inf luence tactics such as pressure or coalitions could actually decrease organizational commitment levels.
A P P L I C AT I O N : A LT E R N AT I V E D I S P U T E R E S O LU T I O N
There is always the possibility that, despite a leader’s best effort, negotiations and/or conflict management will result in an impasse between two parties. In many organizations, disputes that might escalate into actual legal battles are settled through alternative dispute resolution.77 Alter- native dispute resolution is a process by which two parties resolve conflicts through the use of a specially trained, neutral third party. There are various types of alternative dispute resolution that offer each party more or less control over the outcomes in question.78 Which types of resolution are chosen are generally a function of time pressures, dispute intensity, and the type of conflict involved.79 Two of the most common forms are mediation and arbitration.
Mediation requires a third party to facilitate the dispute resolution process, though this third party has no formal authority to dictate a solution. In essence, a mediator plays the role of a neutral, objective party who listens to the arguments of each side and attempts to help two par- ties come to an agreement. In serious, potentially litigious situations, trained mediators offer a
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13.1 Leadership is the use of power and influence to direct the activities of followers toward goal achievement. Power is the ability to influence the behavior of others and resist unwanted influence in return. Power is necessary, in that it gives leaders the ability to influ- ence others.
13.2 Leaders have five major types of power. There are three organizational forms of power: Legitimate power is based on authority or position, reward power is based on the distribu- tion of resources or benefits, and coercive power is based on the handing out of punish- ments. There are two personal forms of power: Expert power is derived from expertise and knowledge, whereas referent power is based on the attractiveness and charisma of the leader. These types of power can be used most effectively when leaders are central to the work process, highly visible, have discretion, and are the sole controllers of resources and information.
13.3 Leaders can use at least 10 different influence tactics to achieve their objectives. The most effective are rational persuasion, consultation, inspirational appeals, and collaboration. The least effective are pressure and the forming of coalitions. Tactics with moderate levels of effectiveness are ingratiation, exchange, personal appeals, and apprising.
13.4 Organizational politics are individual actions that are directed toward the goal of further- ing a person’s own self-interests. Political behavior is most likely to occur in organizational situations in which individual outcomes are uncertain.
13.5 Leaders use power and influence to resolve conflicts through five conflict resolution styles: avoidance, competing, accommodating, collaborating, and compromising. The most effective, and most difficult, tactic is collaboration.
TA K E AWAY S
relatively easy and quick way out of difficult disputes. A more definite form of alternative reso- lution is the process of arbitration. Arbitration occurs when a third party determines a binding settlement to a dispute. The arbitrator can be an individual or a group (board) whose job is to listen to the various arguments and then make a decision about the solution to the conflict. In some ways, arbitration is much riskier for both parties, because the outcome of the dispute rests solely in the arbitrator’s hands. The arbitrator’s role isn’t to make everyone happy but rather to arrive at the most equitable solution in his or her opinion. In conventional arbitrations, arbitrators can create a solution of their choosing, mixing and matching available alternatives. In contrast, in final-offer arbitration, each party presents its most fair offer, and the arbitrator chooses the offer identified as most reasonable.
The two forms of alternative dispute resolution can be voluntary or mandatory, with many companies starting to create policies that make alternative dispute resolution mandatory for employees. However, there is some evidence that taking away the “voluntariness” of the process lowers employees’ feelings of procedural justice (see Chapter 7).80
Of course, the goal of dispute resolution is always to have the two parties come to a volun- tary agreement. Traditionally, mediation is the first step in alternative dispute resolution; if the mediator cannot help the two parties come to an agreement, the process continues to arbitration. Research suggests though that an opposite approach might lead to better results. That is, the two parties undergo the arbitration process, and the arbitrator makes a decision, which is placed in a sealed envelope. The two parties then go through the process of mediation; if they still can’t come to an agreement, they turn to the arbiter’s decision. Flipping the order resulted in significantly higher voluntary agreement rates between the two parties.81
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K E Y T E R M S
• Leadership p. 412 • Power p. 412 • Legitimate power p. 413 • Reward power p. 413 • Coercive power p. 414 • Expert power p. 414 • Referent power p. 415 • Substitutability p. 416 • Discretion p. 416 • Centrality p. 416 • Visibility p. 416 • Influence p. 416 • Rational persuasion p. 417 • Inspirational appeal p. 417 • Consultation p. 418 • Collaboration p. 418 • Ingratiation p. 418 • Personal appeals p. 418 • Apprising p. 419 • Pressure p. 419 • Coalitions p. 419 • Exchange tactic p. 420
• Internalization p. 420 • Compliance p. 420 • Resistance p. 420 • Organizational politics p. 421 • Political skill p. 421 • Competing p. 423 • Avoiding p. 424 • Accommodating p. 424 • Collaboration p. 424 • Compromise p. 424 • Negotiation p. 426 • Distributive bargaining p. 426 • Integrative bargaining p. 426 • Preparation p. 428 • BATNA p. 428 • Exchanging information p. 428 • Bargaining p. 428 • Closing and commitment p. 428 • Alternative dispute resolution p. 431 • Mediation p. 431 • Arbitration p. 432
13.6 Leaders use both distributive and integrative bargaining strategies to negotiate outcomes. The process of negotiating effectively includes four steps: preparation, exchanging informa- tion, bargaining, and closing and commitment.
13.7 Power and influence have moderate positive relationships with job performance and organizational commitment. However, for these beneficial effects to be realized, leaders must wield their power effectively and rely on effective influence tactics in negotiating outcomes.
13.1 Which forms of power do you consider to be the strongest? Which types of power do you currently have? How could you go about obtaining higher levels of the forms that you’re lacking?
13.2 Who is the most influential leader you have come in contact with personally? What forms of power did they have, and which types of influence did they use to accomplish objectives?
13.3 What would it take to have a “politically free” environment? Is that possible?
13.4 Think about the last serious conflict you had with a coworker or group member. How was that conflict resolved? Which approach did you take to resolve it?
13.5 Think of a situation in which you negotiated an agreement. Which approach did you take? Was it the appropriate one? How might the negotiation process have gone more smoothly?
D I S C U S S I O N Q U E S T I O N S
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As Zappos made its push toward holocracy, Hsieh decided to ramp up the efforts to an even higher level: Teal. Hsieh sent out a 4,700 word e-mail to all employees entitled “Reinventing Zap- pos: The Road to Teal.” Teal, supposed to be the next stage of development after holocracy, is characterized as “A new kind of organization designed to enable ‘whole’ individuals (not narrow professional selves) to self-organize and self-manage to achieve an organic organizational purpose.” In the memo, Hsieh essentially told the remaining employees to get on board or get out. Hsieh was not happy with the progress that had been made up to that point and wrote, “in order to eliminate the legacy management hierarchy, there will be effectively no more people managers.” John Bunch, the employee in charge of the move to teal says, “Teal is the goal; holocracy is the system.”
Hsieh even went as far as to offer the equivalent of three months’ worth of salary to employ- ees who would quit the organization if they didn’t feel they could fit in. Over 200 employees (14 percent) took him up on the offer—a massive number of people given Zappos’s normal turn- over rate of 1 percent annually. Clearly, not everyone felt comfortable in an organization with no clear leadership structure and very little to no legitimate power. One departed employee called holocracy “a social experiment [that] created chaos and uncertainty.” Others felt like “more employees are feeling like favoritism [and management issues are] becoming a bigger problem.” CEO Tony Hsieh remains undaunted. Hsieh says, “The one thing I’m absolutely sure of is that the future is about self-management.”
The move has not been bad for everyone. Less experienced individuals with less expertise have felt energized by their ability to speak up and have a voice. One employee whose prior boss blocked a job transfer stated that as soon as he figured holocracy out, “I was like, ‘Actually, my boss can’t tell me that.’” Jake McCrea, who teaches new hires about Zappos culture, states, “Holacracy is like a sport or a new language. You can read about it, you can hear people tell you about it, you won’t understand it until you start using it.” Even through all the issues, Hsieh stated, “I’ve been surprised at how hard it is to let go of the psychological baggage. In retrospect, I would have probably ripped off the Band-Aid sooner.”
13.1 Can an organization run effectively without leaders having some form of organizational power?
13.2 What types of influence would become more important under holocracy at Zappos?
13.3 Do you think leadership skills would be more or less important at Zappos under holoc- racy? How so?
Sources: E. Bernstein, J. Bunch, N. Canner, and M. Lee, “Beyond the Holocracy Hype,” Harvard Business Review, July– August 2016, pp. 38–49; R. Greenfield, “How Zappos Converts New Hires to Its Bizarre Office Culture,” Bloomberg Online, June 30, 2015; A. Groth. “Zappos Is Struggling with Holocracy Because Humans Aren’t Designed to Operate Like Software,” Quartz Online, December 21, 2016; https://qz.com/849980/zappos-is-struggling-with-holacracy-because-humans -arent-designed-to-operate-like-software/; A. Groth, The Kingdom of Happiness: Inside Tony Hsieh’s Zapponian Utopia, New York: Touchstone, 2017; and J. Reingold, “The Zappos Experiment,” Fortune, March 15, 2016, pp. 206–14.
C A S E : C A S E Z A P P O S
E X E R C I S E : LO B BY I N G F O R I N F LU E N C E
The purpose of this exercise is to give you experience in using influence tactics to modify the behavior of others. Follow these steps:
13.1 During this exercise, your objective is to get other people in the class to give you their points. If you get more than 50 percent of the total number of points distributed to the whole class, you’ll win. Each person in the class has a different number of points, as shown in the class
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list. You can keep or give away your points in whatever manner you choose, as long as you follow the rules for each round of the process. There are five rounds, described next.
Round 1. In this round, you will write memos to your classmates. You can say whatever you want in your memos, and write them to whomever you choose, but for the 10-minute writing period, there will be no talking, only writing. You will deliver all your messages at one time, at the end of the 10-minute writing period.
Round 2. In this round, you will respond in writing to the messages you received in the first round. You can also write new memos as you see fit. Again, there is to be no talking! At the end of 15 minutes, you can distribute your memos.
Round 3. In round 3, you can talk as much as you like. You will have 15 minutes to talk with anyone about anything.
Round 4. In this round, you will create ballots to distribute your points any way you see fit. To distribute your points, put a person’s name on an index card, along with the number of points you want that person to have. If you choose to keep any of your points, put your own name on the card, along with the number of points you want to keep. Do not hand in your cards until asked to do so by your instructor.
Round 5. If there is no clear winner, round 5 will be used to repeat steps 3 and 4.
13.2 Class discussion (whether in groups or as a class) should focus on the following questions: • What kinds of social influence attempts did you make during this exercise? • How successful were you at influencing others to go along with you? • What kinds of influence did others use on you? • What was the most successful way you saw someone else use influence during the
memo-writing and discussion sections? • What other factors determined how you voted?82
13.1 Yukl, G. Leadership in Organizations, 7th ed. New York: Peason, 2012.
13.2 Ibid.
13.3 McMurray, V.V. “Some Unanswered Questions on Orga- nizational Conflict.” Organization and Administrative Sciences 6 (1975), pp. 35–53; and Pfeffer, J. Manag- ing with Power. Boston: Harvard Business School Press, 1992.
13.4 Cotton, J.L. “Measure- ment of Power- Balancing Styles and Some of Their
Correlates.” Adminis- trative Science Quarterly 21 (1976), pp. 307–19; and Emerson, R.M. “Power-Dependence Relationships.” Ameri- can Sociological Review 27 (1962), pp. 29–41.
13.5 Ashforth, B.E., and F.A. Mael. “The Power of Resistance.” In Power and Influence in Organizations, ed. R.M. Kramer and M.E. Neal. Thousand Oaks, CA: Sage, 1998, pp. 89–120.
13.6 French, J.R.P. Jr., and B. Raven. “The Bases of Social
Power.” In Studies in Social Power, ed. D. Cartwright. Ann Arbor: University of Michigan, Institute for Social Research, 1959, pp. 150–67; and Yukl, G., and C.M. Falbe. “The Importance of Different Power Sources in Downward and Lateral Rela- tions.” Journal of Applied Psychology 76 (1991), pp. 416–23.
13.7 Yukl, G. “Use Power Effectively.” In Handbook of Principles of Organizational Behavior, ed. E.A. Locke. Malden, MA:
E N D N OT E S
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Blackwell, 2004, pp. 242–47.
13.8 Source: Rao, L. “Apple Retail Chief Angela Ahrendts on Turning Stores Into Town Squares.” Fortune.com, October 17, 2016
13.9 Source: Tedlow, R.S. “The Education of Andy Grove.” Fortune, March 22, 2016, pp. 117–38.
13.10 French and Raven, “The Bases of Social Power.”
13.11 Reingold, J. “The Zappos Experiment.” Fortune, March 15, 2016, pp. 206–14.
13.12 Hickson, D.J.; C.R. Hinings; C.A. Lee; R.E. Schneck; and J.M. Pennings. “A Strategic Contingen- cies Theory of Intraor- ganizational Power.” Administrative Science Quarterly 16 (1971), pp. 216–27; Hinings, C.R.; D.J. Hickson; J.M. Pennings; and R.E. Schneck. “Struc- tural Conditions of Intraorganizational Power.” Administrative Science Quarterly 19 (1974), pp. 22–44; and Salancik, G.R., and J. Pfeffer. “Who Gets Power and How They Hold On to It: A Strategic Contingency Model of Power.” Organizational Dynam- ics 5 (1977), pp. 3–21.
13.13 Dvorak, P. “Theory and Practice: Engi- neering Firm Charts Ties—Social-Mapping Helps MWH Uncover
Gaps.” The Wall Street Journal, January 26, 2009, p. 7; McGregor, J. “The Office Chart That Really Counts.” BusinessWeek, February 27, 2006, pp. 48–49.
13.14 Dvorak, “Theory and Practice”; Green, H. “Google: Harnessing the Power of Cliques.” BusinessWeek, Octo- ber 6, 2008, p. 50; and Rusli, E.M. “Your New Secretary: An Algorithm.” The Wall Street Journal, June 13, 2013, p. B6.
13.15 Somech, A., and A. Drach-Zahavy. “Relative Power and Influence Strategy: The Effects of Agent/ Target Organizational Power on Superiors’ Choices of Influence Strategies.” Journal of Organizational Behavior 23 (2002), pp. 167–79; and Stahelski, A.J., and C.F. Paynton. “The Effects of Status Cues on Choices of Social Power and Influence Strategies.” Journal of Social Psychology 135 (1995), pp. 553–60.
13.16 Yukl, G. Leadership in Organizations, 4th ed. Englewood Cliffs, NJ: Prentice Hall, 1998.
13.17 Yukl, G.; C. Chavez; and C.F. Seifert. “Assessing the Con- struct Validity and Utility of Two New Influence Tactics.” Journal of Organiza- tional Behavior 26 (2005), pp. 705–25;
and Yukl, G. Leader- ship in Organizations, 5th ed. Upper Saddle River, NJ: Prentice Hall, 2002.
13.18 Lee, S., Han, S., Cheong, M., Kim, S.L., and S. Yun. “How Do I Get My Way? A Meta-Analytic Review of Research on Influence Tactics." The Leadership Quar- terly 20 (2017), pp. 210–28.
13.19 Yukl, G.; H. Kim; and C. Chavez. “Task Importance, Feasibility, and Agent Influence Behavior as Determinants of Target Commitment.” Journal of Applied Psychology 84 (1999), pp. 137–43.
13.20 Yukl (1998), Leader- ship in Organizations.
13.21 Source: Manjoo, F. “The Quest: How New CEO Larry Page Will Lead the Company He Cofounded into the Future.” Fast Company, April 2011, pp. 68–76.
13.22 Groth, A., The King- dom of Happiness: Inside Tony Hsieh’s Zapponian Utopia, New York: Touch- stone, 2017.
13.23 Yukl et al., “Task Importance.”
13.24 Source: Lev-Ram, M. “Getting Past the Big Blues.” Fortune, October 6, 2014, pp. 92–100.
13.25 Wayne, S.J., and G.R. Ferris. “Influence Tactics, Affect, and
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Exchange Quality in Supervisor–Subordinate Interactions: A Labo- ratory Experiment and Field Study.” Journal of Applied Psychology 75 (1990), pp. 487–99.
13.26 Kelman, H.C. “Compli- ance, Identification, and Internalization: Three Processes of Atti- tude Change.” Journal of Conflict Resolution 2 (1958), pp. 51–56.
13.27 Yukl et al., “Assess- ing the Construct Validity.”
13.28 Falbe, C.M., and G. Yukl. “Consequences for Managers of Using Single Influence Tac- tics and Combinations of Tactics.” Academy of Management Journal 35 (1992), pp. 638–52.
13.29 Source: Berfield, S., and M. Arndt. “Kraft’s Sugar Rush.” Bloomberg Businessweek, January 25, 2010, pp. 36–39.
13.30 Yukl (2012), Leader- ship in Organizations.
13.31 Ibid.
13.32 Somech and Drach- Zahavy, “Relative Power and Influence Strategy”; Yukl (2002), Leadership in Organizations; and Yukl, “Use Power Effectively.”
13.33 Ferris, G.R., and W.A. Hochwarter. “Orga- nizational Politics.” In APA Handbook of Industrial and Orga- nizational Psychology,
Vol. 3, ed. S. Zedeck. Washington, DC: American Psychologi- cal Association, 2011, pp. 435–59; and Mintzberg, H. “The Organization as Politi- cal Arena.” Journal of Management Studies 22 (1985), pp. 133–54.
13.34 Source: Bryan-Low, C., and J. Singer. “Vodafone Group Life President Resigns over Management Flap.” The Wall Street Journal, March 13, 2006, p. B3.
13.35 Reingold, “How a Radical Shift Left Zappos Reeling.”
13.36 Bacharach, S.B., and E.J. Lawler. “Political Alignments in Organi- zations.” In Power and Influence in Organiza- tions, ed. R.M. Kramer and M.E. Neal. Thousand Oaks, CA: Sage, 1998, pp. 67–88.
13.37 Kacmar, K.M., and R.A. Baron. “Organi- zational Politics: The State of the Field, Links to Related Pro- cesses, and an Agenda for Future Research.” In Research in Per- sonnel and Human Resources Manage- ment, Vol. 17, ed. G.R. Ferris. Greenwich, CT: JAI Press, 1999, pp. 1–39.
13.38 Ferris, G.R.; D.C. Treadway; P.L. Per- rewe; R.L. Brouer; C. Douglas; and S. Lux. “Political Skill in Organizations.” Jour- nal of Management 33
(2007), pp. 290–320; and Treadway, D.C.; G.R. Ferris; A.B. Duke; G.L. Adams; and J.B. Thatcher. “The Moderating Role of Subordinate Political Skill on Supervisors’ Impres- sions of Subordinate Ingratiation and Rat- ings of Subordinate Interpersonal Facili- tation.” Journal of Applied Psychology 92 (2007), pp. 848–55.
13.39 Seldman, M., and E. Betof. “An Illuminated Path.” T & D 58 (2004), pp. 34–39.
13.40 Ferris, G.R.; D.C. Treadway; R.W. Kolokinsky; W.A. Hochwarter; C.J. Kacmar; and D.D. Frink. “Development and Validation of the Political Skill Inven- tory.” Journal of Man- agement 31 (2005), pp. 126–52.
13.41 Ferris et al., “Political Skill in Organiza- tions”; and Ferris et al., “Development and Validation.”
13.42 Bing, M.H.; H.K. Davison; I. Minor; M.M. Novicevik; and D.D. Frink. “The Prediction of Task and Contextual Perfor- mance by Political Skill: A Meta-Analysis and Moderator Test.” Journal of Vocational Behavior 79 (2011), pp. 563–77.
13.43 Ferris, G.R.; D.D. Frink; D.P.S. Bhawuk; J. Zhou; and D.C.
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Gilmore. “Reactions of Diverse Groups to Politics in the Workplace.” Journal of Management 22 (1996), pp. 23–44.
13.44 Chang, C.; C.C. Rosen; and P.E. Levy. “The Relationship between Perceptions of Organizational Politics and Employee Attitudes, Strain, and Behavior: A Meta-Analytic Examination.” Acad- emy of Management Journal 52 (2009), pp. 779–801; Kacmar and Baron, “Organiza- tional Politics”; Miller, B.K.; M. A. Ruther- ford; and R. W. Kolo- dinsky. “Perceptions of Organizational Politics: A Meta- Analysis of Out- comes.” Journal of Business and Psychology 22 (March 2008), pp. 209–22; Hochwarter, W.A. “The Interactive Effects of Pro-Political Behavior and Politics Perceptions on Job Satisfaction and Com- mitment.” Journal of Applied Social Psychology 33 (2003), pp. 1360–78; Randall, M.L.; R. Cropanzano; C.A. Bormann; and A. Birjulin. “Orga- nizational Politics and Organizational Support as Predictors of Work Attitudes, Job Performance, and Organiza- tional Citizenship Behavior.” Journal of Organizational Behavior 20 (1999),
pp. 159–74; and Witt, L.A. “Enhancing Organizational Goal Congruence: A Solu- tion to Organizational Politics.” Journal of Applied Psychology 83 (1998), pp. 666–74.
13.45 Eisenhardt, K.M., and L.J. Bourgeois. “Politics of Strategic Decision Making in High-Velocity Envi- ronments: Toward a Midrange Theory.” Academy of Manage- ment Journal 31 (1988), pp. 737–70.
13.46 Atinc, G.; M. Darrat; B. Fuller; and B.W. Parker. “Perceptions of Organizational Politics: A Meta- Analysis of Theo- retical Antecedents.” Journal of Managerial Issues 22 (2010), pp. 494–513; Biberman, G. “Personality and Characteristic Work Attitudes of Persons with High, Moderate, and Low Political Ten- dencies.” Psychological Reports 60 (1985), pp. 1303–10; Ferris et al., “Reactions of Diverse Groups”; and O’Connor, W.E., and T.G. Morrison. “A Comparison of Situational and Dispositional Predic- tors of Perceptions of Organizational Politics.” Journal of Psychology 135 (2001), pp. 301–12.
13.47 O’Boyle, E.H.; D.R. Forsyth; G.C. Banks; and M.A. McDaniel. “A Meta-Analysis of the Dark Triad and
Work Behavior: A Social Exchange Per- spective.” Journal of Applied Psychology 97 (2012), pp. 557–79; and Valle, M., and P.L. Perrewe. “Do Politics Perceptions Relate to Political Behaviors? Tests of an Implicit Assump- tion and Expanded Model.” Human Relations 53 (2000), pp. 359–86.
13.48 Fandt, P.M., and G.R. Ferris. “The Manage- ment of Information and Impressions: When Employees Behave Opportunisti- cally.” Organizational Behavior and Human Decision Processes 45 (1990), pp. 140–58; O’Connor and Mor- rison, “A Comparison of Situational and Dis- positional Predictors”; and Poon, J.M.L. “Situational Anteced- ents and Outcomes of Organizational Politics Perceptions.” Journal of Managerial Psychology 18 (2003), pp. 138–55.
13.49 Atinc et al., “Percep- tions of Organiza- tional Politics.”
13.50 Lewicki, R.J., and J.A. Litterer. Negotiations. Homewood, IL: Irwin, 1985; and Thomas, K.W. “Conflict and Negotiation Processes in Organizations.” In Handbook of Industrial and Organizational Psychology. 2nd ed., Vol. 3, ed. M.D. Dunnette and L.M. Hough. Palo Alto, CA:
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Consulting Psycholo- gists Press, pp. 651–717.
13.51 Weingart, L., and K.A. Jehn. “Manage Intra-Team Conflict through Collabora- tion.” In Handbook of Principles of Organi- zational Behavior, ed. E.A. Locke. Malden, MA: Blackwell, 2004, pp. 226–38.
13.52 Thomas, K.W. “Toward Multi- Dimensional Values in Teaching: The Example of Conflict Behaviors.” Academy of Management Review 2 (1977), pp. 484–90; and de Dreu, C.K.W.; A. Evers; B. Beersma; E.S. Kluwer; and A. Nauta. “A Theory- Based Measure of Conflict Management Strategies in the Workplace.” Journal of Organizational Behavior 22 (2001), pp. 645–68.
13.53 Holt, J.L., and C.J. DeVore. “Culture, Gender, Organiza- tional Role, and Styles of Conflict Resolu- tion: A Meta- Analysis.” Interna- tional Journal of Inter- cultural Relations 29 (2005), pp. 165–96.
13.54 Schlareth, A.; N. Ensari; and J. Christian. “A Meta- Analytical Review of the Relationship between Emotional Intelligence and Lead- ers’ Constructive Con- flict Management.” Group Processes and
Intergroup Relations 16 (2013), pp. 126–36.
13.55 de Dreu, C.K.W. “Con- flict at Work: Basic Principles and Applied Issues.” In APA Hand- book for Industrial and Organizational Psychol- ogy, Vol. 3, ed. S. Zedeck. Washington, DC: American Psycho- logical Association, 2011, pp. 461–93.
13.56 Balliet, D., and P.A.M. Van Lange. “Trust, Conflict, and Cooperation: A Meta-Analysis.” Psy- chological Bulletin 139 (2013), pp. 1090–112.
13.57 MacMilan, D., and L. Fleisher. “How Sharp Elbowed Uber Is Trying to Make Nice.” The Wall Street Journal, January 29, 2015.
13.58 Swisher, K. "Man and Uber Man." Vanity Fair, December 2014, p. 146.
13.59 Source: MacMillan, Douglas, and Lisa Fleisher. “How Sharp-Elbowed Uber Is Trying to Make Nice.” The Wall Street Journal (2015).
13.60 Ibid.
13.61 Malhotra, D., and M.H. Bazerman. “Psychological Influ- ence in Negotiation: An Introduction Long Overdue.” Journal of Management 34 (2008), pp. 509–31.
13.62 Bazerman, M.H., and M.A. Neale. Negotiat- ing Rationally. New
York: The Free Press, 1992; and Pinkley, R.L.; T.L. Griffeth; and G.B. Northcraft. “Fixed Pie a la Mode: Information Avail- ability, Information Processing, and the Negotiation of Suboptimal Agree- ments.” Organizational Behavior and Human Decision Processes 50 (1995), pp. 101–12.
13.63 Pinkley et al., “Fixed Pie a la Mode.”
13.64 Kolb, D.M., and J. Williams. “Break- through Bargaining.” Harvard Business Review, February 2001, pp. 88–97.
13.65 Pinkley et al., “Fixed Pie a la Mode.”
13.66 Based on Pruitt, D.G. “Achieving Integrative Agreements in Nego- tiation.” In Psychology and the Prevention of the Nuclear War, ed. R.K. White. New York: Columbia Uni- versity Press, 1986, pp. 463–78.
13.67 Thomas, “Conflict and Negotiation Processes.”
13.68 Source: Terlep, S. “Ergen Keeps Rivals Guessing.” The Wall Street Journal, June 12, 2013, p. 83.
13.69 Based on Shell, R. Bar- gaining for Advantage: Negotiation Strategies for Reasonable People, 2nd ed. New York: Penguin Books, 2006.
13.70 Fisher, R., and W. Ury. Getting to Yes: Negotiating Agreement
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Without Giving In. New York: Penguin Books, 1991.
13.71 Shell, Bargaining for Advantage.
13.72 Gelfand, M.J.; A. Fulmer; and L. Sever- ance. “The Psychol- ogy of Negotiation and Mediation.” In APA Handbook for Industrial and Orga- nizational Psychology, Vol. 3, ed. S. Zedeck. Washington, DC: American Psychologi- cal Association, 2011, pp. 495–554.
13.73 Ibid.
13.74 Barry, B., and R.L. Oliver. “Affect in Dyadic Negotiation: A Model and Proposi- tions.” Organizational Behavior and Human Decision Processes 67 (1996), pp. 127–43.
13.75 Gelfand, “The Psychology of
Negotiation and Mediation.”
13.76 Ibid.
13.77 Roche, W.K., and P. Teague. “The Grow- ing Importance of Workplace ADR.” International Journal of Human Resource Management 23 (2012), pp. 447–58.
13.78 Nugent, P.S. “Manag- ing Conflict: Third- Party Interventions for Managers.” Academy of Management Execu- tive 16 (2002), pp. 139–54.
13.79 Goldman, B.M.; R. Cropanzano; J. Stein; and L. Benson. “The Role of Third Parties/Mediation in Managing Conflict in Organizations.” In The Psychology of Conflict and Conflict Manage- ment in Organizations, ed. C.K.W. de Dreu and M.J. Gelfand.
New York: Erlbaum, 2008, pp. 291–319.
13.80 Bernardin, H.J.; B.E. Richey; and S.L. Cas- tro. “Mandatory and Binding Arbitration: Effects on Employee Attitudes and Recruit- ing Results.” Human Resource Management 50 (2011), pp. 175–200.
13.81 Conlon, D.E.; H. Moon; and K.Y. Ng. “Putting the Cart Before the Horse: The Benefits of Arbitrating Before Mediating.” Journal of Applied Psychology 87 (2002), pp. 978–84.
13.82 Adapted from “Voting for Dollars.” In the Instructor’s Manual for Whetten, D.A., and K.S. Cameron. Developing Manage- ment Skills, 7th ed. Englewood Cliffs, NJ: Prentice Hall, 2007.
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14
LEARNING GOALS
14.1 What is leadership and what does it mean for a leader to be “effective”? 14.2 What traits and characteristics are related to leader emergence and leader effectiveness? 14.3 What four styles can leaders use to make decisions, and what factors combine to make these styles
more effective in a given situation?
14.4 What two dimensions capture most of the day-to-day leadership behaviors in which leaders engage? 14.5 How does transformational leadership differ from transactional leadership, and which behaviors set it
apart?
14.6 How does leadership affect job performance and organizational commitment? 14.7 Can leaders be trained to be more effective?
After reading this chapter, you should be able to answer the following questions:
Leadership: Styles and Behaviors
INDIVIDUAL OUTCOMES
INDIVIDUAL MECHANISMS
INDIVIDUAL CHARACTERISTICS
ORGANIZATIONAL MECHANISMS
Motivation
Trust, Justice, & Ethics
Teams: Characteristics &
Diversity Learning &
Decision Making
Stress
Job Satisfaction
Leadership: Styles &
Behaviors
Organizational Commitment
Job Performance
GROUP MECHANISMS
Ability
Personality & Cultural Values
Teams: Processes &
Communication
Leadership: Power &
Negotiation
Organizational Culture
Organizational Structure
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M ary Barra, 55, has topped Fortune’s list of most powerful women for two years in a row. As CEO and Board Chairman of General Motors, she is ulti-
mately responsible for the leadership of an organization with over 200,000 employees and $160 billion in revenue in 2016. It’s quite a daunting task, but Barra seems to be perfectly made for it so far. Barra took over the company shortly after GM declared bankruptcy and had to take a gov- ernment bailout in order to survive. She stepped in right as GM had to fight through the recall of 2.6 million cars due to a faulty ignition switch that was responsible for 21 deaths and more than 500 injuries. Barra was placed front and center testifying before Congress while being questioned about the dysfunctional culture at GM. Most believe she handled herself incredibly well, primarily by being open and honest about the safety scandal both inside and outside the company—even going so far as to commission an indepen- dent investigation (which resulted in a number of firings and early retirements).
Known for having a collaborative leadership style, Barra is not one to shirk from issues and encourages those around
her to tackle things head on. She says, “I want bad news— the sooner the better. I want it when the person closest to it realizes there’s a problem. Almost every problem at the start is solvable. The longer it takes to solve, the higher it gets in the organization and the bigger the problem gets.” Barra, who has spent 36 years at GM (she started when she was 18), partly developed her leadership skills during her early career in factory management. Some believe the reason she’s been successful is a controlled ego—the exact oppo- site of many of her predecessors. Barra is willing to share credit when it is deserved, which has allowed her to hang on to the upper level executives that were competing with her for the CEO job. Some say she’s assembled the best management team in GM’s history.
One of Barra’s major gifts has been the ability to inspire accountability inside a culture that has been known for the exact opposite. Barra, speaking to a room full of newly pro- moted executives, said, “Remember your whole career, how you’ve been talking about them? If only they would get it? If only they would work this out? Well, you are now they. If you don’t like something, you have to talk to yourself.”
GENERAL MOTORS
©Rachel Woolf/Getty Images News/Getty Images
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L E A D E R S H I P : S T Y L E S A N D B E H AV I O R S
This is the second of two chapters on leadership, defined as the use of power and influence to direct the activities of followers toward goal achievement.1 That direction can affect followers’ interpretation of events, the organization of their work activities, their commitment to key goals, their relationships with other followers, or their access to cooperation and support from other work units.2 The last chapter described how leaders get the power and influence needed to direct others. In the case of Mary Barra, her power derives from her formal role as GM’s CEO, her expertise, and her charisma. This chapter describes how leaders actually use their power and influ- ence in an effective way. Although she’s worked for GM her entire 35-year career, Barra has a clear vision of what GM can be in the future.
Of course, most leaders can’t judge their performance by pointing to how many cars they’ve sold (over 10 million per year) or how long they’ve worked for a company. Fortunately, leader effectiveness can be gauged in a number of ways. Leaders might be judged by objective evaluations of unit performance, such as profit margins, market share, sales, returns on investment, produc- tivity, quality, costs in relation to budgeted expenditures, and so forth.3 If those sorts of indices are unavailable, the leader’s superiors may judge the performance of the unit on a more subjec- tive basis. Other approaches to judging leader effectiveness center more on followers, including indices such as absenteeism, retention of talented employees, grievances filed, requests for trans- fer, and so forth.4 Those sorts of indices can be complemented by employee surveys that assess the perceived performance of the leader, the perceived respect and legitimacy of the leader, and employee commitment, satisfaction, and psychological well-being. The top panel of Table 14-1 provides one example of these sorts of measures.
One source of complexity when judging leader effectiveness, particularly with more subjec- tive, employee-centered approaches, is “Whom do you ask?” The members of a given unit often disagree about how effective their leader is. Leader–member exchange theory, which describes how leader–member relationships develop over time on a dyadic basis, can explain why those differences exist.5 The theory argues that new leader–member relationships are typically marked by a role taking phase, during which a manager describes role expectations to an employee and the employee attempts to fulfill those expectations with his or her job behaviors.6 In this period of sampling and experimentation, the leader tries to get a feel for the talent and motivation lev- els of the employee. For some employees, that initial role taking phase may eventually be supple- mented by role making, during which the employee’s own expectations for the dyad get mixed in with those of the leader.7 The role making process is marked by a free-flowing exchange in which the leader offers more opportunities and resources and the employee contributes more activities and effort.
Over time, the role taking and role making processes result in two general types of leader– member dyads, as shown in Figure 14-1. One type is the “high-quality exchange” dyad, marked by the frequent exchange of information, inf luence, latitude, support, and attention. Those dyads form the leader’s “ingroup” and are characterized by higher levels of mutual trust, respect, and obligation.8 The other type is the “low-quality exchange” dyad, marked by a more limited exchange of information, inf luence, latitude, support, and attention. Those dyads form the leader’s “outgroup” and are characterized by lower levels of trust, respect, and obligation.9 Tests of the theory suggest that employees who are competent, likable, and similar to the leader in personality will be more likely to end up in the leader’s ingroup; those factors have even greater impact than age, gender, or racial similarity.10 These ingroup relationships can be very powerful attachments for some workers. Research suggests that employees are less likely to leave an organization when they have a high LMX relationship with a specific leader, but they are more likely to leave following a leadership succession.11 Leader–member exchange theory also suggests that judgments of leader effectiveness should gauge how effective the most criti- cal leader–member dyads appear to be. The bottom panel of Table 14-1 provides one example
14.1 What is leadership and what does it mean for a leader to be “effective”?
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of this sort of measure, with more agreement indicating a higher-quality exchange relationship and thus higher levels of leader effectiveness on a dyadic basis.12 Recent meta-analyses have found that employees with higher-quality exchange relationships have higher levels of job per- formance and exhibit more organizational citizenship behaviors and fewer counterproductive behaviors on average.13 It should be noted, though, that the development of high LMX relation- ships has proven to be more effective in individualistic (Western) cultures than in collectivistic (Asian) cultures.14
TABLE 14-1 Employee-Centered Measures of Leader Effectiveness
Unit-Focused Approach
Ask all members of the unit to fill out the following survey items, then average the responses across the group to get a measure of leader effectiveness.
1. My supervisor is effective in meeting our job-related needs.
2. My supervisor uses methods of leadership that are satisfying.
3. My supervisor gets us to do more than we expected to do.
4. My supervisor is effective in representing us to higher authority.
5. My supervisor works with us in a satisfactory way.
6. My supervisor heightens our desire to succeed.
7. My supervisor is effective in meeting organizational requirements.
8. My supervisor increases our willingness to try harder.
9. My supervisor leads a group that is effective.
Dyad-Focused Approach
Ask members of the unit to fill out the following survey items in reference to their particular relationship with the leader. The responses are not averaged across the group; rather, differ- ences across people indicate differentiation into “ingroups” and “outgroups” within the unit.
1. I always know how satisfied my supervisor is with what I do.
2. My supervisor understands my problems and needs well enough.
3. My supervisor recognizes my potential.
4. My supervisor would use his/her power to help me solve work problems.
5. I can count on my supervisor to “bail me out” at his/her expense if I need it.
6. My working relationship with my supervisor is extremely effective.
7. I have enough confidence in my supervisor to defend and justify his/her decisions when he/she is not present to do so.
Sources: Adapted from B. Bass and B. Avolio, MLQ Manual (Menlo Park, CA: Mind Garden, Inc., 2004); and G.B. Graen and M. Uhl-Bien, “Relationship-Based Approach to Leadership: Development of Leader–Member Exchange (LMX) Theory of Leadership over 25 Years: Applying a Multi-Level Multi-Domain Perspective,” Leadership Quarterly 6 (1995), pp. 219–47.
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FIGURE 14-1 Leader–Member Exchange Theory
High-Quality Exchange (ingroup)
Low-Quality Exchange (outgroup)
MEMBER
MEMBER
MEMBER
MEMBER
LEADER Leader “Ingroups” have:
Greater mutual trust Greater respect Higher felt obligation
W H Y A R E S O M E L E A D E R S M O R E E F F E C T I V E T H A N OT H E R S ?
For our purposes, leader effectiveness will be defined as the degree to which the leader’s actions result in the achievement of the unit’s goals, the continued commitment of the unit’s employees, and the development of mutual trust, respect, and obligation in leader–member dyads. Now that we’ve described what it means for a leader to be effective, we turn to the critical question in this chapter: “Why are some leaders more effective than others?” That is, why exactly are some leaders viewed as more effective on a unitwide basis, and why exactly are some leaders better at fostering high-quality exchange relationships? Beginning as far back as 1904, research on leadership has attempted to answer such questions by looking for particular traits or charac- teristics of effective leaders.15 The search for traits and characteristics is consistent with “great person” theories of leadership that suggest that “leaders are born, not made.”16 Early research in this area frequently focused on physical features (e.g., gender, height, physical attractiveness, energy level), whereas subsequent research focused more squarely on personality and ability (see Chapter 9 on personality and cultural values and Chapter 10 on ability for more discussion of such issues).
After a century of research, leadership scholars now acknowledge that there is no generalizable profile of effective leaders from a trait perspective.17 In fact, most studies have concluded that traits are more predictive of leader emergence (i.e., who becomes a leader in the first place) than they are of leader effectiveness (i.e., how well people actually do in a leadership role). Table 14-2 reviews some of the traits and characteristics that have been found to be correlated with leader emergence and leader effectiveness. Although a number of traits and characteristics are relevant to leadership, two limitations of this work have caused leadership research to move in a differ- ent direction. First, many of the trait–leadership correlations are weak in magnitude, particularly when leader effectiveness serves as the outcome. Second, the focus on leader traits holds less prac- tical relevance than a focus on leader actions. Although research shows that traits can seemingly have an effect on leader effectiveness, these effects are generally explained much more strongly by leader behavior.18 What exactly can leaders do that can make them more effective? This chapter
14.2 What traits and character- istics are related to leader emergence and leader effectiveness?
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TABLE 14-2 Traits/Characteristics Related to Leader Emergence and Effectiveness
DESCRIPTION OF TRAIT/ CHARACTERISTIC LINKED TO EMERGENCE? LINKED TO EFFECTIVENESS?
High conscientiousness √
Low agreeableness √
Low neuroticism
High openness to experience √ √
High extraversion √ √
High general cognitive ability √ √
High energy level √ √
High stress tolerance √ √
High self-confidence √ √
reviews three types of leader actions: decision-making styles, day-to-day behaviors, and behaviors that fall outside of a leader’s typical duties.
L E A D E R D E C I S I O N - M A K I N G ST Y L E S Of course, one of the most important things leaders do is make decisions. Think about the job you currently hold or the last job you had. Now picture your boss. How many decisions did he or she have to make in a given week? How did he or she go about making those decisions? A leader’s decision-making style reflects the process the leader uses to generate and choose from a set of alternatives to solve a problem (see Chapter 8 on learning and decision making for more discus- sion of such issues). Decision-making styles capture how a leader decides as opposed to what a leader decides.
The most important element of a leader’s decision-making style is this: Does the leader decide most things for him- or herself, or does the leader involve others in the process? We’ve probably all had bosses (or professors, or even parents) who made virtually all decisions by themselves, stop- ping by to announce what had happened once the call had been made. We’ve probably also had other bosses (or professors, or parents) who tended to do the opposite—involving us, asking our opinions, or seeking our vote even when we didn’t care about what was being discussed. It turns out that this issue of leader versus follower control can be used to define some specific decision- making styles. Figure 14-2 shows those styles, arranged on a continuum from high follower control to high leader control.
DEFINING THE STYLES With an autocratic style, the leader makes the decision alone without asking for the opinions or suggestions of the employees in the work unit.19 The employees may provide information that the leader needs but are not asked to generate or evaluate potential solutions. In fact, they may not even be told about the decision that needs to be made, knowing only that the leader wants information for some reason. Unlike Mary Barra at GM, this decision- making style seems to be a favorite of Fiat-Chrysler CEO Sergio Marchionne, who is doing his best to make sure decisions are made extraordinarily quickly at Chrysler—and he’s doing that by
14.3 What four styles can lead- ers use to make decisions, and what factors combine to make these styles more effective in a given situation?
Sources: Adapted from T.A. Judge, J.E. Bono, R. Ilies, and M.W. Gerhardt, “Personality and Leadership: A Qualitative and Quantitative Review,” Journal of Applied Psychology 87 (2002), pp. 765–80; T.A. Judge, A.E. Colbert, and R. Ilies, “Intelligence and Leadership: A Quantitative Review and Test of Theoretical Propositions,” Journal of Applied Psychology 89 (2004), pp. 542–52; and G. Yukl, Leadership in Organizations, 4th ed. (Englewood Cliffs, NJ: Prentice Hall, 1998)
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making them himself. Marchionne has flattened Chrysler’s organizational chart with him at the top and has 25 direct reports (not counting 21 at Fiat). One might think this would cause a major bottleneck with regard to decisions, but Marchionne swears that speed is the only thing that will save Chrysler at this point and he is always within reach through the use of one of his six Black- Berrys. Marchionne says, “BlackBerrys are divine instruments. They [his direct reports] have access to me 24/7.” The CEO is known for making decisions within minutes, or seconds.20
The next two styles in Figure 14-2 offer more employee involvement. With a consultative style, the leader presents the problem to individual employees or a group of employees, asking for their opinions and suggestions before ultimately making the decision him- or herself.21 With this style, employees do “have a say” in the process, but the ultimate authority still rests with the leader. Bob Brennan, ex-CEO of Iron Mountain, a $3 billion information management services company headquartered in Boston, says, “I ask this question a lot in different situations: ‘What do you rec- ommend we do?’ You can get a real sense for who’s invested in moving the company forward, and who’s watching the company go by, with that very simple question. People lay out problems all the time. If they’ve thought through what should be done from here, then you’ve got somebody who’s in the game, who wants to move, and you can unlock that potential.”22
That ultimate authority changes with a facilitative style, in which the leader presents the problem to a group of employees and seeks consensus on a solution, making sure that his or her own opinion receives no more weight than anyone else’s.23 With this style, the leader is more facilitator than deci- sion maker. Robert W. Selander, executive vice chair of MasterCard, said he had learned over time to encourage discussion in a group. “From sort of a style standpoint, I prefer to do what I call more of a consensus style of decision-making,” he said. “So when I’m around the table with our executive com- mittee, the senior leadership of the company, I could easily make a bilateral decision. You’re knowl- edgeable about your area. I may have the best knowledge about your area or second best around the table. You and I agree. Let’s get on with it. What we haven’t done is we haven’t benefited from the wisdom, the insight, and the experience of the others around the table. And while they may not have as much insight or knowledge about your area as you do, there’s a chance that we missed something. So I try to get more engagement and discussion around topics and avoid what I would call bilateral- ism. I think what happens is sometimes you get an insight that’s startling and important and affects
the decision, but you also get participative involvement so that there is buy-in and a rec- ognition of how we got to that decision. It’s not as if the boss went off in a corner and waved a magic wand and, bang, out came the decision.”24
With a delegative style, the leader gives an individ- ual employee or a group of employees the responsibility for making the decision within some set of specified boundary conditions.25 The leader plays no role in the deliberations
FIGURE 14-2 Leader Decision-Making Styles
High Follower Control
High Leader Control
Delegative Style
Facilitative Style
Consultative Style
Autocratic Style
Sergio Marchionne, CEO of Fiat-Chrysler, is known for his autocratic and speedy
decision-making style.
©Bloomberg/Getty Images
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unless asked, though he or she may offer encouragement and provide necessary resources behind the scenes. Former American Apparel CEO Paula Schneider, known as a “macromanager,” took over for a CEO who had a hardcore autocratic style. “If someone comes to me and says, ‘Every- thing is screwed up,’ then I make them list everything. And then after once or twice, no one does it again, because no one wants to list everything. Here, it is about finding solutions.”26 Daniel Amos, CEO and chair of Aflac, also believes strongly in a delegative style. He says, “My theory is that when you start telling people what to do, they no longer are responsible; you are. I’ll give them my opinion and say; ‘Look, this is my opinion, but if you choose that and you fail, you’re not blaming it on me. It is your fault.’ I think it makes them stronger.”27
WHEN ARE THE STYLES MOST EFFECTIVE? Which decision-making style is best? As you may have guessed, there is no one decision-making style that’s effective across all situations, and all styles have their pluses and minuses. There are many factors to consider when leaders choose a decision-making style.28 The most obvious consideration is the quality of the resulting decision, because making the correct decision is the ultimate means of judging the leader. However, leaders also have to consider whether employees will accept and commit to their decision. Research stud- ies have repeatedly shown that allowing employees to participate in decision making increases their job satisfaction.29 Such participation also helps develop employees’ own decision-making skills.30
Of course, such participation has a downside for employees because it takes up time. Many employees view meetings as an interruption of their work. One recent study found that employees spend, on average, six hours a week in scheduled meetings and that time spent in meetings relates negatively to job satisfaction when employees don’t depend on others in their jobs, focus on their own task accomplishment, and believe meetings are run ineffectively.31 Diane Bryant, EVP at Intel, argues that “You need people who are critical to making the decisions on the agenda, not people who are there only because they’ll be impacted. At Intel, if we see someone who doesn’t need to be there, people will say, ‘Bob, I don’t think we need you here. Thanks for coming.’”32 Similarly, Mary Barra is trying to speed things up at GM, which is known for having one of the most bureaucratic cultures around—the company is known for decisions having to be made by committee. Once, they even appointed a committee to take a look at how many committee meetings should be held!33
How can leaders effectively manage their choice of decision-making styles? The time-driven model of leadership offers one potential guide.34 It suggests that the focus should shift away from autocratic, consultative, facilitative, and delegative leaders to autocratic, consultative, facilitative, and delegative situations. More specifically, the model suggests that seven factors combine to make some decision-making styles more effective in a given situation and other styles less effec- tive. Those seven factors include:
• Decision significance: Is the decision significant to the success of the project or the organization? • Importance of commitment: Is it important that employees “buy in” to the decision? • Leader expertise: Does the leader have significant knowledge or expertise regarding the problem? • Likelihood of commitment: How likely is it that employees will trust the leader’s decision and
commit to it? • Shared objectives: Do employees share and support the same objectives, or do they have an
agenda of their own? • Employee expertise: Do the employees have significant knowledge or expertise regarding the
problem? • Teamwork skills: Do the employees have the ability to work together to solve the problem, or will
they struggle with conflicts or inefficiencies?
Figure 14-3 illustrates how these seven factors can be used to determine the most effective decision-making style in a given situation. The figure asks whether the levels of each of the seven fac- tors are high (H) or low (L). The figure functions like a funnel, moving from left to right, with each answer taking you closer to the recommended style (dashes mean that a given factor can be skipped for that combination). Although the model seems complex at first glance, the principles within it are straightforward. Autocratic styles are reserved for decisions that are insignificant or for which employee commitment is unimportant. The only exception is when the leader’s expertise is high and the leader is trusted. An autocratic style in these situations should result in an accurate decision
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Source: Adapted from V.H. Vroom, “Leadership and the Decision-Making Process,” Organizational Dynamics 28 (2000), pp. 82–94.
FIGURE 14-3 The Time-Driven Model of Leadership
Autocratic Delegative
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E that makes the most efficient use of employees’ time. Delegative styles should be reserved for cir- cumstances in which employees have strong teamwork skills and are not likely to commit blindly to whatever decision the leader provides. Deciding between the remaining two styles—consultative and facilitative—is more nuanced and requires a more complete consideration of all seven factors.
For our earlier example of Sergio Marchionne, decision significance is high, importance of commitment is low, and leader expertise is high, so he adopts an autocratic decision style. How- ever, for Jack Griffin, ex-CEO of Time Inc., autocratic decision making didn’t seem to go over too well. Griffin became known within the company for his “imperious” decision-making behavior. For example, he insisted that every magazine include a masthead with his name at the top (an extra page that cost the company about $5 million a year) almost right after hundreds of employ- ees were laid off—a decision that used to be left up to individual editors. A source within the company was quoted as saying, “Time Inc. has long operated on the collegial consensus approach and I don’t think that was Jack’s strength.”35 With magazine publishing operating during such a precarious time, we would label decision significance as high, importance of commitment as high, and the leader not appearing to have expertise in the subject matter of the decisions. As a result, his autocratic style led to a rebellion by those working for him and his termination only six months after his appointment. A key point about Figure 14-3 is that unless a leader is an expert with regard to the focus of the decision, autocratic decisions are not the right style to choose.
Research tends to support many of the time-driven model’s propositions, particularly when it uses practicing managers as participants.36 For example, one study asked managers to recall past decisions, the context surrounding those decisions, and the eventual successes (or failures) of their decisions.37 When managers used the decision-making styles recommended by the model, those deci- sions were rated as successful 68 percent of the time. When managers went against the model’s prescriptions, their decisions were only rated as successful 22 percent of the time. It’s also interesting
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to note that studies suggest that managers tend to choose the style recommended by the model only around 40 percent of the time and exhibit less variation in styles than the model suggests they should.38 In particular, managers seem to overuse the consultative style and underutilize autocratic and facilitative styles. Sheila Lirio Marcelo, the CEO of Care.com, uses a unique approach by actu- ally letting her staff know what type of decisions will be made prior to each meeting. “We do Type 1, Type 2, Type 3 decisions,” she said. “Type 1 decisions are the decision-maker’s sole decision— dictatorial [autocratic]. Type 2: people can provide input, and then the person can still make the decision [consultative]. Type 3, it’s consensus [facilitative]. It’s a great way to efficiently solve a prob- lem.”39 To try to use the time-driven model’s suggestions yourself, see this chapter’s OB on Screen.
OB ON SCREEN THE MARTIAN
This is something NASA expressly rejected. We’re talking about mutiny here, which is not a word that I take lightly, so we do this together—or not at all.
With those words, Commander Melissa Lewis (Jessica Chastain) signals the decision-making style she is going to use during a conversation with the crew of the Hermes in The Martian (Dir: Ridley Scott, 20th Century Fox, 2015). The year is 2035 and the crew of the Ares III mission to Mars has just been sent a clandestine communication from an unknown source within NASA. The message provides details as to how they can re-route their spacecraft to potentially return to Mars to save stranded crew member Mark Watney (Matt Damon) whom they left behind believ- ing that he was dead. The decision is not an easy one and is rife with potential complications. What decision-making style should Commander Lewis use to decide what to do?
If we work our way through Figure 14-3, it seems clear that the decision is significant. To re-route their craft is to go against the decision of NASA and potentially jeopardizes the entire operation. Commander Lewis also stresses to the crew that any mistake along the way could kill them all. Get- ting the crew’s commitment to the decision is highly important not only due to the danger, but also because it adds 533 days to their voyage. Commander Lewis, while highly qualified, does not have the expertise to do it alone. It’s likely the crew will commit; one does so before even thinking through the options. The crew shares a great desire (objective) to rectify leaving one of their own behind and they are each experts in their chosen fields (geologist, pilot, doctor, computer programmer, and chemist). In addition, the crew has demonstrated their ability to work effectively with each other as a team. If you’ve been keeping up with Figure 14-3 we have a H-H-L-H-H-H-H, suggesting that Com- mander Lewis’s most effective decision-making style would be facilitative. Even though it is within her purview to order the crew to do what she wants, Commander Lewis presents the problem to the group and seeks consensus on the solution, ensuring that her vote only counts as one of five.
©Photo 12/Alamy
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DAY-TO - DAY L E A D E R S H I P B E H AV I O R S Leaving aside how they go about making decisions, what do leaders do on a day-to-day basis? When you think about bosses that you’ve had, what behaviors did they tend to perform as part of their daily leadership responsibilities? A series of studies at Ohio State in the 1950s attempted to answer that question. Working under grants from the Office of Naval Research and the Inter- national Harvester Company, the studies began by generating a list of all the behaviors leaders engage in—around 1,800 in all.40 Those behaviors were trimmed down to 150 specific examples, then grouped into several categories, as shown in Table 14-3.41 The table reveals that many leaders spend their time engaging in a mix of initiating, organizing, producing, socializing, integrating, communicating, recognizing, and representing behaviors. Although eight categories are easier to remember than 1,800 behaviors, further analyses suggested that the categories in Table 14-3 really boil down to just two dimensions: initiating structure and consideration.42
Initiating structure reflects the extent to which the leader defines and structures the roles of employees in pursuit of goal attainment.43 Leaders who are high on initiating structure play a more active role in directing group activities and prioritize planning, scheduling, and trying out new ideas. They might emphasize the importance of meeting deadlines, describe explicit stan- dards of performance, ask employees to follow formalized procedures, and criticize poor work when necessary.44 Millard Drexler, CEO of J. Crew (the New York–based clothing retailer), has a unique initiating structure approach as he belts out instructions, assigns tasks, discusses clothing trends, and talks about sales statistics and goals about a dozen times a day over loudspeakers in the main Manhattan office. If he isn’t in the office (and he often isn’t), he has his assistant patch him in through his cell phone.45
Consideration reflects the extent to which leaders create job relationships characterized by mutual trust, respect for employee ideas, and consideration of employee feelings.46 Leaders who
14.4 What two dimensions capture most of the day-to- day leadership behaviors in which leaders engage?
TABLE 14-3 Day-to-Day Behaviors Performed by Leaders
BEHAVIOR DESCRIPTION
Initiating Structure
Initiation Originating, facilitating, and sometimes resisting new ideas and practices
Organization Defining and structuring work, clarifying leader versus member roles, coordinating employee tasks
Production Setting goals and providing incentives for the effort and productiv- ity of employees
Consideration
Membership Mixing with employees, stressing informal interactions, and exchanging personal services
Integration Encouraging a pleasant atmosphere, reducing conflict, promoting individual adjustment to the group
Communication Providing information to employees, seeking information from them, showing an awareness of matters that affect them
Recognition Expressing approval or disapproval of the behaviors of employees
Representation Acting on behalf of the group, defending the group, and advanc- ing the interests of the group
Source: R.M. Stogdill, Manual for the Leader Behavior Description Questionnaire-Form XII, Bureau of Business Research, The Ohio State University, 1963.
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are high on consideration create a climate of good rapport and strong, two-way communica- tion and exhibit a deep concern for the welfare of employees. They might do personal favors for employees, take time to listen to their problems, “go to bat” for them when needed, and treat them as equals.47 Jeff Immelt, CEO of General Electric, attempts to do this with many of the officers in his company by hosting a sleepover a couple of times a month. Immelt says, “We spend Saturday morning just talking about their careers. Who they are, how they fit, how I see their strengths and weaknesses—stuff like that. The personal connection is something I may have taken for granted before that [and] I don’t want to ever take for granted again.”48 Google’s project OXYGEN was a process that tried to identify the most effective behaviors of managers inside the organization. The three most important habits that determined leader success were all oriented toward consid- eration: meeting regularly with employees, taking an interest in them personally, and asking ques- tions rather than always providing answers.49
The Ohio State studies argued that initiating structure and consideration were (more or less) independent concepts, meaning that leaders could be high on both, low on both, or high on one and low on the other. That view differed from a series of studies conducted at the University of Michigan during the same time period. Those studies identified concepts similar to initiating structure and consideration, calling them production-centered (or task-oriented) and employee- centered (or relations-oriented) behaviors.50 However, the Michigan studies framed their task- oriented and relations-oriented concepts as two ends of one continuum, implying that leaders couldn’t be high on both dimensions.51 In fact, a meta-analysis of 78 studies showed that initiat- ing structure and consideration are only weakly related—knowing whether a leader engages in one brand of behavior says little about whether he or she engages in the other brand.52 To see how much initiating structure and consideration you engage in during leadership roles, see our OB Assessments feature.
After an initial wave of research on initiating structure and consideration, leadership experts began to doubt the usefulness of the two dimensions for predicting leadership effectiveness.53 More recent research has painted a more encouraging picture, however. A meta-analysis of 103 studies showed that initiating structure and consideration both had beneficial relationships with a number of outcomes.54 For example, consideration had a strong positive relationship with per- ceived leader effectiveness, employee motivation, and employee job satisfaction. It also had a moderate positive relationship with overall unit performance. For its part, initiating structure had a strong positive relationship with employee motivation and moderate positive relationships with perceived leader effectiveness, employee job satisfaction, and overall unit performance. One of the most amusing and unique CEOs in the country, Chobani’s Hamdi Ulukaya, is known for exhibit- ing both sets of behaviors. Employees say that there are, in essence, two Hamdi’s. Ulukaya says, “I’m a shepherd and I’m a warrior—I come and go between those two.” CMO Peter McGuinness says the two versions of Ulukaya mesh together well: “The leaders of tomorrow more and more realize that having a strong head and big heart is where you need to be.”55
Although initiating structure and consideration tend to be beneficial across situations, there may be circumstances in which they become more or less important. The life cycle theory of leadership (sometimes also called the situational model of leadership) argues that the optimal combination of initiating structure and consideration depends on the readiness of the employees in the work unit.56 Readiness is broadly defined as the degree to which employees have the abil- ity and the willingness to accomplish their specific tasks.57 As shown in Figure 14-4, the theory suggests that readiness varies across employees and can be expressed in terms of four important snapshots: R1–R4. To find the optimal combination of leader behaviors for a particular readi- ness snapshot, put your finger on the relevant R, then move it straight down to the recommended combination of behaviors.
The description of the first two R’s has varied over time and across different formulations of the theory. One formulation described the R’s as similar to stages of group development.58 R1 refers to a group of employees who are working together for the first time and are eager to begin, but they lack the experience and confidence needed to perform their roles. Here the optimal combination of leader behaviors is telling—high initiating structure and low consideration—in which case the leader provides specific instructions and closely supervises performance. The lion’s share of the leader’s attention must be devoted to directing followers in this situation,
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OB ASSESSMENTS
INITIATING STRUCTURE AND CONSIDERATION How do you act when you’re in a leadership role? This assessment is designed to measure initiat- ing structure and consideration. Please write a number next to each statement that reflects how frequently you engage in the behavior described. Then subtract your answers to the boldfaced questions from 6, with the difference being your new answer for that question. For example, if your original answer for question 16 was “4,” your new answer is “2” (6–4). Then sum up your answers for each of the dimensions. (Instructors: Assessments on transformational leadership, LMX, charisma, and readiness can be found in the PowerPoints in the Connect Library’s Instruc- tor Resources and in the Connect assignments for this chapter.)
SCORING AND INTERPRETATION:
Initiating Structure: Sum up items 1–10. _______ Consideration: Sum up items 11–20. _______ For initiating structure, scores of 38 or more are high. For consideration, scores of 40 or more are high.
Source: R.M. Stogdill, Manual for the Leader Behavior Description Questionnaire–Form XII (Columbus, OH: Bureau of Business Research, The Ohio State University, 1963).
1 NEVER
2 SELDOM
3 OCCASIONALLY
4 OFTEN
5 ALWAYS
1. I let group members know what is expected of them. ________
2. I encourage the use of uniform procedures. ________
3. I try out my ideas in the group. ________
4. I make my attitudes clear to the group. ________
5. I decide what shall be done and how it shall be done. ________
6. I assign group members to particular tasks. ________
7. I make sure that my part in the group is understood by the group members. ________
8. I schedule the work to be done. ________
9. I maintain definite standards of performance. ________
10. I ask group members to follow standard rules and regulations. ________
11. I am friendly and approachable. ________
12. I do little things to make it pleasant to be a member of the group. ________
13. I put suggestions made by the group into operation. ________
14. I treat all group members as equals. ________
15. I give advance notice of changes. ________
16. I keep to myself. ________
17. I look out for the personal welfare of group members. ________
18. I am willing to make changes. ________
19. I refuse to explain my actions. ________
20. I act without consulting the group. ________
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FIGURE 14-4 The Life Cycle Theory of Leadership
Source: Adapted from P. Hersey and K. Blanchard, “Revisiting the Life-Cycle Theory of Leadership,” Training and Devel- opment, January 1996, pp. 42–47.
Firing on all cylinders
Starting to work well together
Readiness
R4
HIGH LOWMODERATE
Tasks seem harder than expected
Eager but inexperienced
R3 R2 R1
Initiating Structure HIGH HIGH
Consideration HIGHHIGH LOWLOW
LOW LOW
Partici- pating
Dele- gating
Selling Telling
because their goals and roles need to be clearly defined. In the R2 stage, the members have begun working together and, as typically happens, are finding that their work is more difficult than they had anticipated. As eagerness turns to dissatisfaction, the optimal combination of leader behaviors is selling—high initiating structure and high consideration—in which the leader supplements his or her directing with support and encouragement to protect the confidence levels of the employees.
As employees gain more ability, guidance and direction by the leader become less necessary. At the R3 stage, employees have learned to work together well, though they still need support and collaboration from the leader to help them adjust to their more self-managed state of affairs. Here participating—low initiating structure and high consideration—becomes the optimal com- bination of leader behaviors. Finally, the optimal combina- tion for the R4 readiness level is delegating—low initiating struc- ture and low consideration— such that the leader turns responsibility for key behav- iors over to the employees. Here the leader gives them the proverbial ball and lets them run with it. All that’s needed from the leader is some degree of observation and monitor- ing to make sure that the group’s efforts stay on track. Nick Woodman, CEO of GoPro, had to learn the hard way (after numerous project
Jeff Immelt, CEO of General Electric, exhibits consideration by holding “sleepovers” with his offi- cers to get to know them better.
©Brett Flashnick/AP Images
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failures) to recognize the readiness in his followers and that as the company’s projects moved outside of his area of expertise, he had to delegate more to his staff.59
Estimates suggest that the life cycle theory has been incorporated into leadership training programs at around 400 of the firms in the Fortune 500, with more than one million manag- ers exposed to it annually.60 Unfortunately, the application of the theory has outpaced scientific testing of its propositions, and the shifting nature of its terminology and predictions has made scientific testing somewhat difficult.61 The research that has been conducted supports the theory’s predictions only for low readiness situations, suggesting that telling and selling sorts of behaviors may be more effective when ability, motivation, or confidence is lacking.62 When readiness is higher, these tests suggest that leader behaviors simply matter less, regardless of their particular combinations. Tests also suggest that leaders only use the recommended combinations of behav- iors between 14 and 37 percent of the time,63 likely because many leaders adhere to the same leadership philosophy regardless of the situation. It should also be noted that tests of the theory have been somewhat more supportive when conducted on an across-job, rather than within-job, basis. For example, research suggests that the performance of lower ranking university employees (e.g., maintenance workers, custodians, landscapers) depends more on initiating structure and less on consideration than the performance of higher ranking university employees (e.g., profes- sors, instructors).64
T R A N S F O R M AT I O N A L L E A D E R S H I P B E H AV I O R S By describing decision-making styles and day-to-day leader behaviors, we’ve covered a broad spec- trum of what it is that leaders do. Still, something is missing. Take a small piece of scrap paper and jot down five people who are famous for their effective leadership. They can come from inside or outside the business world and can be either living people or historical figures. All that’s impor- tant is that their name be practically synonymous with great leadership. Once you’ve compiled your list, take a look at the names. Do they appear on your list because they tend to use the right decision-making styles in the right situations and engage in effective levels of consideration and initiating structure? What about the case of Mary Barra? Do decision-making styles and day-to- day leadership behaviors explain her importance to the fortunes of GM?
The missing piece of this leadership puzzle is what leaders do to motivate their employees to perform beyond expectations. Transformational leadership involves inspiring followers to commit to a shared vision that provides meaning to their work while also serving as a role model who helps followers develop their own potential and view problems from new perspectives.65 Trans- formational leaders heighten followers’ awareness of the importance of certain outcomes while
Mother Teresa’s inspiring humanitarian work with
India’s sick and poor, and her founding of the
influential Missionaries of Charity, became known
around the world and sug- gest that she was a trans-
formational leader. She was awarded the Nobel
Peace Prize in 1979.
©Tim Graham/Hulton Archive/Getty Images
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increasing their confidence that those outcomes can be achieved.66 What gets “transformed” is the way followers view their work, causing them to focus on the collective good more than just their own short-term self-interests and to perform beyond expectations as a result.67 Former president Dwight D. Eisenhower once noted, “Leadership is the ability to decide what is to be done, and then to get others to want to do it.”68 Former president Harry S. Truman similarly observed, “A leader is a man who has the ability to get other people to do what they don’t want to do, and like it.”69 Both quotes capture a transformation in the way followers view their work and what moti- vates them on the job.
Transformational leadership is viewed as a more motivational approach to leadership than other managerial approaches. Figure 14-5 contrasts various approaches to leadership according to how active or passive they are and, ultimately, how effective they prove to be. The colored cubes in the figure represent five distinct approaches to motivating employees, and the depth of the cubes represents how much a leader prioritizes each of the approaches. The figure therefore represents an optimal leadership approach that prioritizes more effective and more active behaviors. That optimal approach includes low levels of laissez-faire (i.e., hands-off) leadership, represented by the red cube, which is the avoidance of leadership altogether.70 Important actions are delayed, respon- sibility is ignored, and power and influence go unutilized. One common measure of leadership reflects laissez-faire styles with this statement: “The leader avoids getting involved when important issues arise.”71
The three yellow cubes represent transactional leadership, which occurs when the leader rewards or disciplines the follower depending on the adequacy of the follower’s performance.72 With passive management-by-exception, the leader waits around for mistakes and errors, then takes corrective action as necessary.73 After all, “if it ain’t broke, don’t fix it!”74 This approach is rep- resented by statements like: “The leader takes no action until complaints are received.”75 With active management-by-exception, the leader arranges to monitor mistakes and errors actively and again takes corrective action when required.76 This approach is represented by statements like: “The leader directs attention toward failures to meet standards.”77 Contingent reward represents a more active and effective brand of transactional leadership, in which the leader attains follower agreement on what needs to be done using promised or actual rewards in exchange for adequate performance.78 Statements like “The leader makes clear what one can expect to receive when per- formance goals are achieved” exemplify contingent reward leadership.79
Transactional leadership represents the “carrot-and-stick” approach to leadership, with management-by-exception providing the “sticks” and contingent reward supplying the “carrots.” Of course, transactional leadership represents the dominant approach to motivating employees in most organizations, and research suggests that it can be effective. A meta-analysis of 87 stud- ies showed that contingent reward was strongly related to follower motivation and perceived leader effectiveness80 (see Chapter 6 on motivation for more discussion of such issues). Active management-by-exception was only weakly related to follower motivation and perceived leader effectiveness, however, and passive management-by-exception seems actually to harm those outcomes.81 Such results support the progression shown in Figure 14-5, with contingent reward standing as the most effective approach under the transactional leadership umbrella.
Finally, the green cube represents transformational leadership—the most active and effective approach in Figure 14-5. How effective is transformational leadership? Well, we’ll save that dis- cussion for the “How Important Is Leadership?” section that concludes this chapter, but suf- fice it to say that transformational leadership has the strongest and most beneficial effects of any of the leadership variables described in this chapter. It’s also the leadership approach that’s most universally endorsed across cultures, as described in our OB Internationally feature. In addi- tion, it probably captures the key qualities of the famous leaders we asked you to list a few para- graphs back. To understand why it’s so powerful, we need to dig deeper into the specific kinds of actions and behaviors that leaders can utilize to become more transformational. It turns out that the full spectrum of transformational leadership can be summarized using four dimensions: idealized influence, inspirational motivation, intellectual stimulation, and individualized consid- eration. Collectively, these four dimensions of transformational leadership are often called “the Four I’s.”82 For our discussion of transformational leadership, we’ll use Steve Jobs, former CEO of Apple, who was widely recognized as one of the most transformational leaders in the corporate
14.5 How does transformational leadership differ from transactional leadership, and which behaviors set it apart?
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FIGURE 14-5 Laissez-Faire, Transactional, and Transformational Leadership
Source: Adapted from B.M. Bass and R.E. Riggio, Transformational Leadership, 2nd ed. (Mahwah, NJ: Erlbaum, 2006).
EFFECTIVE
INEFFECTIVE
ACTIVEPASSIVE
Laissez-Faire
Transactional: Passive Management-
by-Exception
Transactional: Active Management-
by-Exception
Transactional: Contingent Reward
Transformational
world, as a running example. Fortune named Jobs “CEO of the Decade” for the 2000s.83 Although Jobs died in 2011, his legacy as a transformational leader continues to this day. The fact that we constantly hear good leaders being called “Steve Jobs-like” illustrates this fact. Jobs’s leadership continues to affect employees at Apple in profound ways.84
Idealized influence involves behaving in ways that earn the admiration, trust, and respect of followers, causing followers to want to identify with and emulate the leader.85 Idealized influ- ence is represented by statements like: “The leader instills pride in me for being associated with him/her.”86 Idealized influence is synonymous with charisma—a Greek word that means “divinely inspired gift”—which reflects a sense among followers that the leader possesses extraordinary qual- ities.87 “Charisma” is a word that was often associated with Steve Jobs. One observer noted that even though Jobs could be very difficult to work with, his remarkable charisma created a mysteri- ous attraction that drew people to him, keeping them loyal to his collective sense of mission.88
To some extent, discussions of charisma serve as echoes of the “great person” view of leader- ship that spawned the trait research described in Table 14-2. In fact, research suggests that there
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Does the effectiveness of leader styles and behaviors vary across cultures? Answering that ques- tion is one of the objectives of Project GLOBE’s test of culturally endorsed implicit leadership theory, which argues that effective leadership is “in the eye of the beholder” (see Chapter 9 on personality and cultural values for more discussion of such issues). To test the theory, researchers asked par- ticipants across cultures to rate a number of leader styles and behaviors using a 1 (very ineffective) to 7 (very effective) scale. The accompanying figure shows how three of the styles and behaviors described in this chapter were rated across 10 different regions (note that the term “Anglo” repre- sents people of English ethnicity, including the United States, Great Britain, and Australia).
OB INTERNATIONALLY
Sources: P.W. Dorfman, P.J.Hanges, and F.C.Brodbeck, “Leadership and Cultural Variation: The Identification of Cultur- ally Endorsed Leadership Profiles,” in Culture, Leadership, and Organizations, ed. R.J. House, P.J. Hanges, M. Javidan, P.W. Dorfman, and V. Gupta (Thousand Oaks, CA: Sage, 2004), pp. 669–720; R.J. House., P.J. Hanges, M. Javidan, P.W. Dorfman, and V.Gupta, Culture, Leadership, and Organizations (Thousand Oaks, CA: Sage, 2004); and M. Javidan., R.J. House, and P.W. Dorfman.,“A Nontechnical Summary of GLOBE Findings,” in Culture, Leadership, and Organizations, ed. R.J. House, P.J. Hanges, M. Javidan, P.W. Dorfman, and V. Gupta (Thousand Oaks, CA: Sage, 2004), pp. 29–48.
Eastern Europe
Latin America
Latin Europe
Confucian Asia
Nordic Europe Sub-Sahara Africa
Anglo
Southern Asia
Germanic Europe
Middle East
7
6
4
3
Transformational
Participative
Consideration
5
It turns out that transformational leadership is the most universally accepted approach to lead- ership of any of the concepts studied by Project GLOBE, receiving an average rating near 6 in every region except the Middle East. That appeal is likely explained by the fact that transforma- tional leaders emphasize values like idealism and virtue that are endorsed in almost all coun- tries. The figure also shows that a participative style is favorably viewed in most countries, though more variation is evident. Even more variation is seen with consideration behaviors, which are endorsed a bit less across the board but especially in Europe. Understanding these kinds of results can help organizations select and train managers who will fit the profile of an effective leader in a given region.
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is a genetic component to charisma specifically and to transformational leadership more broadly. Studies on identical twins reared apart show that such twins have very similar charismatic pro- files, despite their differing environments.89 Indeed, such research suggests that almost 60 per- cent of the variation in charismatic behavior can be explained by genes. One explanation for such findings is that genes influence the personality traits that give rise to charisma. For example, research suggests that extraversion, openness to experience, and agreeableness have significant effects on perceptions of leader charisma,90 and all three of those personality dimensions have a significant genetic component (see Chapter 9 on personality and cultural values for more discus- sion of such issues).
Inspirational motivation involves behaving in ways that foster an enthusiasm for and commit- ment to a shared vision of the future.91 That vision is transmitted through a sort of “meaning- making” process in which the negative features of the status quo are emphasized while highlight- ing the positive features of the potential future.92 Inspirational motivation is represented by state- ments like: “The leader articulates a compelling vision of the future.”93 At Apple, Steve Jobs was renowned for spinning a “reality distortion field” that reshaped employees’ views of the cur- rent work environment.94 One Apple employee explained, “Steve has this power of vision that is almost frightening. When Steve believes in something, the power of that vision can literally sweep aside any objections, problems, or whatever. They just cease to exist.”95
Intellectual stimulation involves behaving in ways that challenge followers to be innovative and creative by questioning assumptions and reframing old situations in new ways.96 Intellectual stimu- lation is represented by statements like: “The leader gets others to look at problems from many different angles.”97 Intellectual stimulation was a staple of Jobs’s tenure at Apple. He pushed for a different power supply on the Apple II so that the fan could be removed, preventing it from humming and churning like other computers of the time. Years later, he insisted on removing the floppy drive from the iMac because it seemed silly to transfer data one megabyte at a time, a decision that drew merciless criticism when the iMac debuted. One employee talking about Jobs stated, “There would be times when we’d rack our brains on a user interface problem, and think we’d considered every option, and he would go ‘Did you think of this?’ He’d redefine the problem or approach, and our little problem would go away.”98
Individualized consideration involves behaving in ways that help followers achieve their poten- tial through coaching, development, and mentoring.99 Not to be confused with the consideration behavior derived from the Ohio State studies, individualized consideration represents treating employees as unique individuals with specific needs, abilities, and aspirations that need to be tied into the unit’s mission. Individualized consideration is represented by statements like: “The leader spends time teaching and coaching.”100 Of the four facets of transformational leadership, Steve Jobs seemed lowest on individualized consideration. Employees who were not regarded as his equals were given a relatively short leash and sometimes faced an uncertain future in the company. In fact, some Apple employees resisted riding the elevator for fear of ending up trapped with Jobs for the ride between floors. As one observer describes it, by the time the doors open, you might have had your confidence undermined for weeks.101 For a different (yet similar) take on what sets our best leaders apart from others, see our OB at the Bookstore feature.
One interesting domain for examining transformational leadership issues is politics. Many of the most famous speeches given by U.S. presidents include a great deal of transformational content. Table 14-4 includes excerpts from speeches given by presidents that rank highly on transformational content based on scientific and historical study.102 One theme that’s notable in the table is the presence of a crisis, as many of the presidents were attempting to steer the country through a difficult time in history (e.g., World War II, the Cold War, the Civil War). That’s not a coincidence, in that times of crisis are particularly conducive to the emergence of transformational leadership.103 Times of stress and turbulence cause people to long for charis- matic leaders, and encouraging, confident, and idealistic visions resonate more deeply during such times. In addition, support for this suggestion comes from President George W. Bush’s speeches before and after the tragedies on 9/11. Coding of his major speeches, public addresses, and radio addresses shows a significant increase in the transformational content of his rhetoric after the 9/11 attacks, including more focus on a collective mission and more articulation of a values-based vision.104 As future research is conducted, we’re fairly confident that President
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OB AT THE BOOKSTORE SUPERBOSSES by Sydney Finkelstein (New York: Portfolio / Penguin, 2016)
Superbosses are the great coaches, the igniters of talent, and the teachers of leadership in most industries. In effect, superbosses have mastered something most bosses miss—a path to extraordi- nary success founded on making other people successful.
With those words, Sydney Finkelstein describes what sets his idea of a “Superboss” apart from most other managers or leaders. Finkel- stein, a professor at Dartmouth University, spent 10 years interview- ing over 200 renowned leaders across numerous industries to try to unlock the secrets to what creates superlative leadership. The funda- mental conclusion he reached is that what makes a superboss is pri- marily a leader’s desire and ability to make the people underneath them successful. They are willing to do whatever it takes to hire the right people (sometimes in spite of a lack of qualifications) and have the ability to push them to be successful by using their authentic leadership styles. You can spot a superboss by looking at the trail of successful leaders behind them. For instance, at one point NFL Coach Bill Walsh (one of the inspirations for Finkelstein’s research) had trained 26 of the current head coaches in the NFL (out of 32). He identifies the following characteristics present to some degree in all superbosses: extreme confidence, competitiveness, imagination,
integrity, and authenticity. Finkelstein argues that superbosses essentially fall into one of three categories. The first are
“Iconoclasts” who have a creative and passionate vision that inspires the employees around them. Examples of iconoclasts are George Lucas, Lorne Michaels, and Jon Stewart. The second cat- egory is “Glorious Bastards” in which the leader is focused on only one thing: winning. However, these leaders recognize that winning comes through hiring and developing the best people. Exam- ples of glorious bastards are Larry Ellison, Michael Milken, and Bonnie Fuller. The third group of superbosses are “Nurturers” who take pride in mentoring those around them and care about their success. Examples include Mary Kay Ash, Bill Walsh, and Norman Brinker. Not surprisingly, these categories actually map pretty well onto three of the four dimensions of transformational leadership—namely, inspirational motivation (iconoclasts), intellectual stimulation (glorious bas- tards), and individualized consideration (nurturers).
©Roberts Publishing Services
Barack Obama’s speeches will be described similarly, as many of his campaign and postelection speeches were high in transformational content. In fact, President Obama was known for being a very charismatic leader in terms of both the messages he delivered and the mannerisms that went along with them.105 It remains to be seen how President Trump’s speeches will be seen and received by others.
S U M M A RY: W H Y A R E S O M E L E A D E R S M O R E E F F E C T I V E T H A N OT H E R S ? So what explains why some leaders are more effective than others? As shown in Figure 14-6, answering that question requires an understanding of the particular styles that leaders use to make decisions and the behaviors they perform in their leadership role. In terms of decision-making
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TABLE 14-4 Transformational Rhetoric among U.S. Presidents
PRESIDENT TERM REMARK WHICH “I”?
Abraham Lincoln 1861–1865 “Fourscore and seven years ago our forefathers brought forth on this continent, a new nation, con- ceived in Liberty, and dedicated to the proposition that all men are created equal.”
Idealized influence
Franklin Roosevelt 1933–1945 “First of all, let me assert my firm belief that the only thing we have to fear is fear itself—nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance.”
Inspirational motivation
John F. Kennedy 1961–1963 “And so, my fellow Americans . . . ask not what your country can do you for you—ask what you can do for your country. My fellow citizens of the world: Ask not what America will do for you, but what together we can do for the freedom of man.”
Intellectual stimulation
Lyndon Johnson 1963–1969 “If future generations are to remember us more with gratitude than sorrow, we must achieve more than just the miracles of technology. We must also leave them a glimpse of the world as it was created, not just as it looked when we got through with it.”
Idealized influence
Ronald Reagan 1981–1989 “General Secretary Gorbachev, if you seek peace, if you seek prosperity for the Soviet Union and Eastern Europe, if you seek liber- alization: Come here to this gate! Mr. Gorbachev, open this gate! Mr. Gorbachev, tear down this wall!”
Idealized influence
Bill Clinton 1993–2001 “To realize the full possibilities of this economy, we must reach beyond our own borders, to shape the revolution that is tearing down barriers and building new net- works among nations and individu- als, and economies and cultures: globalization. It’s the central reality of our time.”
Intellectual stimulation
Sources: J.S. Mio, R.E. Riggio, S. Levin, and R. Reese, “Presidential Leadership and Charisma: The Effects of Metaphor,” Leadership Quarterly 16 (2005), pp. 287–94; http://www.usa-patriotism.com/quotes/_list.htm.
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FIGURE 14-6 Why Are Some Leaders More Effective Than Others?
Optimal Choice of Decision-Making Styles
Laissez-Faire
Transactional: Passive Management-
by-Exception
Optimal Mix of Transactional and Transformational Behaviors
Optimal Mix of Day-to-Day Behaviors
LEADER EFFECTIVENESS
Consideration Initiating Structure
Facilitative Style
Autocratic Style
Consultative Style
Delegative Style
Transactional: Active Management-
by-Exception
Transactional: Contingent-Reward
Transformational
styles, do they choose the most effective combination of leader and follower control in terms of the autocratic, consultative, facilitative, and delegative styles, particularly considering the impor- tance of the decision and the expertise in the unit? In terms of day-to-day behaviors, do they engage in adequate levels of initiating structure and consideration? Finally, do they utilize an effec- tive combination of transactional leadership behaviors, such as contingent reward, and transfor- mational leadership behaviors, such as idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration?
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H O W I M P O R TA N T I S L E A D E R S H I P ?
How important is leadership? As with some other topics in organizational behavior, that’s a complicated question because “leadership” isn’t just one thing. Instead, all of the styles and behaviors summarized in Figure 14-6 have their own unique importance. However, transforma- tional leadership stands apart from the rest to some extent, with particularly strong effects in organizations. For example, transformational leadership is more strongly related to unit-focused measures of leadership effectiveness, like the kind shown in the top panel of Table 14-1.106 Units led by a transformational leader tend to be more financially successful and bring higher-quality products and services to market at a faster rate.107 Transformational leadership is also more strongly related to dyad-focused measures of leader effectiveness, like the kind shown in the bottom panel of Table 14-1. Transformational leaders tend to foster leader–member exchange relationships that are of higher quality, marked by especially strong levels of mutual respect and obligation.108
What if we focus specifically on the two outcomes in our integrative model of OB: perfor- mance and commitment? Figure 14-7 summarizes the research evidence linking transforma- tional leadership to those two outcomes. The figure reveals that transformational leadership indeed affects the job performance of the employees who report to the leader. Employees with transformational leaders tend to have higher levels of task performance and engage in higher levels of citizenship behaviors.109 Why? One reason is that employees with transformational leaders have higher levels of motivation than other employees.110 They feel a stronger sense of psychological empowerment, feel more self-confident, and set more demanding work goals for themselves.111 Transformational leaders also help their followers frame stressful situations in such a way that they are better able to cope with hindrance stressors and to be engaged by chal- lenge stressors.112 (See Chapter 5 for a detailed discussion of these stressors.) They also trust the leader more, making them willing to exert extra effort even when that effort might not be immediately rewarded.113
Figure 14-7 also reveals that employees with transformational leaders tend to be more com- mitted to their organization.114 They feel a stronger emotional bond with their organization and a stronger sense of obligation to remain present and engaged in their work.115 Why? One reason is that employees with transformational leaders have higher levels of job satisfaction than other employees.116 One study showed that transformational leaders can make employees feel that their jobs have more variety and significance, enhancing intrinsic satisfaction with the work itself.117 Other studies have shown that charismatic leaders express positive emotions more frequently and that those emotions are “caught” by employees through a sort of “emotional contagion” process.118 For example, followers of transformational leaders tend to feel more optimism and less frustration during their workday, which makes it a bit easier to stay commit- ted to work.119
Although leadership is very important to unit effectiveness and the performance and com- mitment of employees, there are contexts in which the importance of the leader can be reduced. The substitutes for leadership model suggests that certain characteristics of the situation can con- strain the influence of the leader, making it more difficult for the leader to influence employee performance.120 Those situational characteristics come in two varieties, as shown in Table 14-5. Substitutes reduce the importance of the leader while simultaneously providing a direct benefit to employee performance. For example, a cohesive work group can provide its own sort of gov- erning behaviors, making the leader less relevant, while providing its own source of motivation and job satisfaction. Neutralizers, in contrast, only reduce the importance of the leader; they themselves have no beneficial impact on performance.121 For example, spatial distance lessens the impact of a leader’s behaviors and styles, but distance itself has no direct benefit for employee job performance.
The substitutes for leadership model offers a number of prescriptions for a better understand- ing of leadership in organizations. First, it can be used to explain why a leader who seemingly “does the right things” doesn’t seem to be making any difference.122 It may be that the leader’s
14.6 How does leadership affect job performance and orga- nizational commitment?
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FIGURE 14-7 Effects of Transformational Leadership on Performance and Commitment
Sources: T.A. Judge and R.F. Piccolo, “Transformational and Transactional Leadership: A Meta-Analytic Test of Their Relative Validity,” Journal of Applied Psychology 89 (2004), pp. 755–68; J.P. Meyer, D.J. Stanley, L. Herscovitch, and L. Topolnytsky, “Affective, Continuance, and Normative Commitment to the Organization: A Meta-Analysis of Antecedents, Correlates, and Consequences,” Journal of Vocational Behavior 61 (2002), pp. 20–52; and P.M. Podsakoff, S.B. MacKenzie, J.B. Paine, and D.G. Bachrach, “Organizational Citizenship Behaviors: A Critical Review of the Theoretical and Empirical Literature and Suggestions for Future Research,” Journal of Management 26 (2000), pp. 513–63.
Transformational leadership has a moderate positive e�ect on Performance. Employees with transformational leaders tend to have higher levels of Task Performance. They are also more likely to engage in Citizenship Behavior. Less is known about the e�ects of transformational leadership on Counterproductive Behavior.
Transformational leadership has a strong positive e�ect on Commitment. Employees with transformational leaders tend to have higher levels of A�ective Commitment and higher levels of Normative Commitment. Transformational leadership has no e�ect on Continuance Commitment.
Transformational Leadership
Job Performance
Organizational Commitment
Transformational Leadership
Represents a strong correlation (around .50 in magnitude).
Represents a moderate correlation (around .30 in magnitude).
Represents a weak correlation (around .10 in magnitude).
TABLE 14-5 Leader Substitutes and Neutralizers
SUBSTITUTES DESCRIPTION
Task feedback Receiving feedback on performance from the task itself
Training & experience Gaining the knowledge to act independently of the leader
Professionalism Having a professional specialty that offers guidance
Staff support Receiving information and assistance from outside staff
Group cohesion Working in a close-knit and interdependent work group
Intrinsic satisfaction Deriving personal satisfaction from one’s work
NEUTRALIZERS DESCRIPTION
Task stability Having tasks with a clear, unchanging sequence of steps
Formalization Having written policies and procedures that govern one’s job
Inflexibility Working in an organization that prioritizes rule adherence
Spatial distance Being separated from one’s leader by physical space
Source: Adapted from S. Kerr and J.M. Jermier, “Substitutes for Leadership: Their Meaning and Measurement,” Organiza- tional Behavior and Human Performance 22 (1978), pp. 375–403.
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work context possesses high levels of neutralizers and substitutes. Second, it can be used to explain what to do if an ineffective person is in a leadership role with no immediate replacement waiting in the wings.123 If the leader can’t be removed, perhaps the organization can do things to make that leader more irrelevant. Studies of the substitutes for leadership model have been inconsistent in showing that substitutes and neutralizers actually make leaders less influential in the predicted manner.124 What is clearer is that the substitutes in Table 14-5 have beneficial effects on the job performance and organizational commitment of employees. In fact, the beneficial effects of the substitutes is sometimes even greater than the beneficial effects of the leader’s own behaviors and styles. Some leadership experts even recommend that leaders set out to create high levels of the substitutes in their work units wherever possible, even if the units might ultimately wind up “run- ning themselves.”125
A P P L I C AT I O N : L E A D E R S H I P T R A I N I N G
Given the importance of leadership, what can organizations do to maximize the effectiveness of their leaders? One method is to spend more time training them. As mentioned in Chapter 8, organizations spend more than $150 billion on employee learning and development, and much of that is devoted to management and supervisory training.126 One training analyst explains the increasing emphasis on leadership training this way: “The biggest problem that companies face today is an acute shortage of midlevel managers. They look around and just don’t have enough qualified people.”127 This is exactly the determination that Walmart’s presi- dent and CEO Bill Simon made when he instituted a 16-week military-style leadership training program. Walmart’s senior vice president of talent development, Celia Swanson, says, “Our analysis showed we were capable of building new stores faster than we could prepare new store managers.”128
Leadership training programs often focus on very specific issues, like conducting more accu- rate performance evaluations, being a more effective mentor, structuring creative problem solving, or gaining more cultural awareness and sensitivity.129 However, training programs can also focus on much of the content covered in this chapter. For example, content could focus on contextual considerations that alter the effectiveness of decision-making styles or particular leader behaviors, such as initiating structure and consideration. This is exactly what Campbell Soup Company is doing through its “CEO Institute”—a two-year program focused on personal leadership develop- ment.130 Farmer’s Insurance puts all of its upper-level executives through a program that gives them direct feedback from their peers on their leadership behaviors. The executives use this infor- mation to create individual leadership development plans.131
It turns out that many training programs focus on transformational leadership content, and research suggests that those programs can be effective.132 One study of transformational lead- ership training occurred in one of the largest bank chains in Canada.133 Managers at all of the branches in one region were randomly assigned to either a transformational training group or a control group. The managers in the training group took part in a one-day training session that began by asking them to describe the best and worst leaders they had ever encountered. Where applicable, the behaviors mentioned as belonging to the best leaders were framed around trans- formational leadership. The transformational dimensions were then described in a lecture-style format. Participants set goals for how they could behave more transformationally and engaged in role-playing exercises to practice those behaviors. The managers then created specific action plans, with progress on those plans monitored during four “booster sessions” over the next month. The results of the study showed that managers who participated in the training were rated as more transformational afterward. More importantly, their employees reported higher levels of organi- zational commitment, and their branches enjoyed better performance in terms of personal loan sales and credit card sales.
14.7 Can leaders be trained to be more effective?
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14.1 Leadership is defined as the use of power and influence to direct the activities of followers toward goal achievement. An “effective leader” improves the performance and well-being of his or her overall unit, as judged by profit margins, productivity, costs, absenteeism, retention, employee surveys, and so forth. An “effective leader” also cultivates high-quality leader–member exchange relationships on a dyadic basis through role taking and role mak- ing processes.
14.2 Leader emergence has been linked to a number of traits, including conscientiousness, disagreeableness, openness, extraversion, general cognitive ability, energy level, stress toler- ance, and self-confidence. Of that set, the last six traits also predict leader effectiveness.
14.3 Leaders can use a number of styles to make decisions. Beginning with high leader control and moving to high follower control, they include autocratic, consultative, facilitative, and delegative styles. According to the time-driven model of leadership, the appropriateness of these styles depends on decision significance, the importance of commitment, leader expertise, the likelihood of commitment, shared objectives, employee expertise, and team- work skills.
14.4 Most of the day-to-day leadership behaviors that leaders engage in are examples of either initiating structure or consideration. Initiating structure behaviors include initiation, orga- nization, and production sorts of duties. Consideration behaviors include membership, integration, communication, recognition, and representation sorts of duties.
14.5 Transactional leadership emphasizes “carrot-and-stick” approaches to motivating employ- ees, whereas transformational leadership fundamentally changes the way employees view their work. More specifically, transformational leadership inspires employees to commit to a shared vision or goal that provides meaning and challenge to their work. The specific behaviors that underlie transformational leadership include the “Four I’s”: idealized influ- ence, inspirational motivation, intellectual stimulation, and individualized consideration.
14.6 Transformational leadership has a moderate positive relationship with job performance and a strong positive relationship with organizational commitment. It has stronger effects on these outcomes than other leadership behaviors.
14.7 Leaders can be trained to be effective. In fact, such training can be used to increase trans- formational leadership behaviors, despite the fact that charisma is somewhat dependent on personality and genetic factors.
TA K E AWAY S
K E Y T E R M S
• Leadership p. 444 • Leader–member exchange
theory p. 444 • Role taking p. 444 • Role making p. 444 • Leader effectiveness p. 446 • Leader emergence p. 446 • Autocratic style p. 447 • Consultative style p. 448 • Facilitative style p. 448 • Delegative style p. 448
• Time-driven model of leadership p. 449 • Initiating structure p. 452 • Consideration p. 452 • Life cycle theory of leadership p. 453 • Readiness p. 453 • Telling p. 453 • Selling p. 455 • Participating p. 455 • Delegating p. 455 • Transformational leadership p. 456 • Laissez-faire leadership p. 457
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14.1 Before reading this chapter, which statement did you feel was more accurate: “Leaders are born” or “Leaders are made”? How do you feel now, and why do you feel that way?
14.2 The time-sensitive model of leadership argues that leaders aren’t just concerned about the accuracy of their decisions when deciding among autocratic, consultative, facilitative, and delegative styles; they’re also concerned about the efficient use of time. What other consid- erations could influence a leader’s use of the four decision-making styles?
14.3 The time-sensitive and life cycle models of leadership both potentially suggest that leaders should use different styles and behaviors for different followers. Can you think of any nega- tive consequences of that advice? How could those negative consequences be managed?
14.4 Consider the four dimensions of transformational leadership: idealized influence, inspi- rational motivation, intellectual stimulation, and individualized consideration. Which of those dimensions would you respond to most favorably? Why?
14.5 Can you think of any potential “dark sides” to transformational leadership? What would they be?
D I S C U S S I O N Q U E S T I O N S
When she gets out of bed, what does Mary Barra (CEO of GM) think about? “I spend a lot of early mornings thinking about executing our plan quickly. The big thing I worry about is speed,” says Barra. CFO Chuck Stevens agrees, highlighting a statement from the faulty ignition switch internal investigation about the culture at GM, “No sense of urgency. No accountability or responsibility. A siloed mentality.” Barra has reacted quickly and with force to make culture change a reality by implementing a number of initiatives including “GM 2020,” which is a program designed to create cross-functional labs throughout the company. Barra has also pushed hard to create a new culture of speed by creating a year-long transformational leadership course for upper-level executives that Barra personally leads. It’s not focused on company strategy, but rather the interpersonal skills she believes are necessary to create change. HR chief John Quat- trone says, “Mary believes that if we change the behaviors [of top managers], people who work for us will see that and emulate it.”
Barra’s major vision for GM is to lead in safe autonomous driving. This puts them directly up against the fast-moving cultures of Google, Uber, and Tesla. Barra believes GM’s recent acquisi- tion of Cruise Automation ($581 million) puts them square in the driver’s seat. After a success- ful, high-profile test of an autonomous Chevy Bolt (with Barra riding in the back seat), Barra told a large group of Cruise employees, “If somebody [at GM] says you can’t have something, or you can’t do something, or it’s going to take this much time, and it doesn’t make sense to you, challenge them. I want you to take the energy and speed and how you look at doing things and drive it into the core of GM.”
C A S E : G E N E R A L M OTO R S
• Transactional leadership p. 457 • Passive management-by-exception p. 457 • Active management-by-exception p. 457 • Contingent reward p. 457 • Idealized influence p. 458 • Inspirational motivation p. 460
• Intellectual stimulation p. 460 • Individualized consideration p. 460 • Substitutes for leadership model p. 464 • Substitutes p. 464 • Neutralizers p. 464
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GM believes that they have the advantage. GM product chief Mark Reuss says, “The piece that is not well understood outside of the automotive industry is how hard it is to take technology and integrate it into a car. It seems like you should be able to layer it in and have it work and that would be great. Right. The effort to integrate that into the car is equal to or more than the tech- nology itself. A car has to work right every time, all the time.” So far, the technology companies have spent billions of dollars in development and have little to show for it. Still, Barra is not will- ing to bask in success for long. Onstage at GM’s headquarters she told her group, “Don’t confuse progress with winning. Are you doing what you can? Or are you doing what it takes to win?”
14.1 Do you think GM can outduel the technology companies for safe autonomous driving vehicles?
14.2 Would you consider Mary Barra to be the prototypical transformational leader? In what ways does she fit or not fit that model?
14.3 Given GM’s history, why does Barra put a premium on her executives’ leadership behaviors?
Source: M. DeBord. “Mary Barra Is About to Become the Most Influential CEO in GM History,” BusinessInsider.com, February 17, 2017: http://www.businessinsider.com/mary-barra-most-influential-ceo-in-gm-history-2017-2; C. Fussman. “What I’ve Learned: Mary Barra,” Esquire.com, April 26, 2016: http://www.esquire.com/lifestyle/cars/interviews/a44325/ what-ive-learned-mary-barra/; P. Ingrassia. “Hail Mary,” Fortune, September 15, 2016, pp. 84–89; B. Luscombe. “13 Ques- tions with Mary Barra,” Time, June 2, 2016: http://time.com/4354740/mary-barra/; and R. Tetzeli. “The Accelerators,” Fast Company, November 2016, pp. 68–74, 100.
E X E R C I S E : TA K E M E TO YO U R L E A D E R
The purpose of this exercise is to explore the commonalities in effective leadership across dif- ferent types of leaders. This exercise uses groups, so your instructor will either assign you to a group or ask you to create your own group. The exercise has the following steps:
14.1 Imagine that a space alien descended down to Earth and actually uttered the famous line, “Take me to your leader!” Having read a bit about leadership, your group knows that lead- ers come in a number of shapes and sizes. Instead of showing the alien just one leader, your group decides it might be beneficial to show the alien a whole variety of leaders. Each member should choose one type of leader from the table to focus on (each member must choose a different type). Try to choose examples that are personally interesting but that also maximize the diversity within the group.
Orchestra Conductor Fashion Designer Drummer in Rock Band
Coach Personal Tax Accountant Point Guard in Basketball
Film Director Nightclub DJ Bartender
College Professor Fitness Trainer Sheriff
Talk-Show Host Prison Guard Millionaire Philanthropist
Stockbroker Real Estate Broker Agent
Psychotherapist MBA Program Director Auditor
Campaign Manager Construction Project Supervisor CEO
Diplomat Sports Color Commentator Vice President of Marketing
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14.2 Individually, jot down some thoughts that highlight for the alien what is truly distinctive about “leadership” for this type of leader. For example, if you were showing the alien a coach, you might call attention to how coaches cannot control the game itself very much but instead must make their influence felt on the practice field by instilling skills while being anticipatory in their thinking. You might also call attention to how coaches need to be cre- ative and adapt quickly during the game itself.
14.3 Share the thoughts you’ve jotted down in your groups, going from member to member, with each person describing what “leadership” means for the given types of leaders.
14.4 Once all these thoughts about the various types of leaders have been shared, think about whether there are certain traits, styles, or behaviors that are universal across all the types. For example, maybe all of the types have some kind of organizing quality to them (e.g., lead- ers need to be organized, leaders need to do things to help others be organized). Create a list of four “leadership universals.”
14.5 Now consider the situational challenges faced by the types of leaders you discussed, includ- ing challenges rooted in the task, their followers, or the surrounding work context. For example, the fact that the coach has little direct impact on the game is a situational chal- lenge. Do other leader types also grapple with lack of direct control? Create a list of four “situational challenges” faced by multiple types of leaders.
14.6 Elect a group member to write the group’s four universals and four challenges on the board.
14.7 Class discussion (whether in groups or as a class) should center on whether the theories described in the chapter discuss some of the leadership universals identified by the groups. Are there theories that also include some of the situational challenges uncovered? Which leadership theory seems best equipped for explaining effective leadership across a wide vari- ety of leader types?134
14.1 Yukl, G. Leadership in Organizations, 4th ed. Englewood Cliffs, NJ: Prentice Hall, 1998.
14.2 Ibid.
14.3 Ibid.
14.4 Ibid.
14.5 Dansereau, F. Jr.; G. Graen; and W.J. Haga. “A Vertical Dyad Linkage Approach to Leadership within Formal Organiza- tions: A Longitudinal Investigation of the Role Making Pro- cess.” Organizational Behavior and Human
Performance 13 (1975), pp. 46–78; Graen, G.; M. Novak; and P. Sommerkamp. “The Effects of Leader–Member Exchange and Job Design on Productiv- ity and Satisfaction: Testing a Dual Attach- ment Model.” Organi- zational Behavior and Human Performance 30 (1982), pp. 109–31; Graen, G.B., and M. Uhl-Bien. “Relationship-Based Approach to Leader- ship: Development of Leader–Member
Exchange (LMX) The- ory of Leadership over 25 Years: Applying a Multi-Level Multi- Domain Perspective.” Leadership Quarterly 6 (1995), pp. 219–47; and Liden, R.C.; R.T. Sparrowe; and S.J. Wayne. “Leader– Member Exchange Theory: The Past and Potential for the Future.” In Research in Personnel and Human Resources Manage- ment, Vol. 15, ed. G.R. Ferris. Greenwich, CT: JAI Press, 1997, pp. 47–119.
E N D N OT E S
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14.6 Graen, G.B., and T. Scandura. “Toward a Psychology of Dyadic Organizing.” In Research in Organiza- tional Behavior, Vol. 9, ed. L.L. Cummings and B.M. Staw. Green- wich, CT: JAI Press, 1987, pp. 175–208.
14.7 Ibid.
14.8 Graen and Uhl-Bien, “Relationship- Based Approach to Leadership.”
14.9 Ibid.
14.10 Bauer, T.N., and S.G. Green. “Development of Leader–Member Exchange: A Longitu- dinal Test.” Academy of Management Jour- nal 39 (1996), pp. 1538–67; Gerst- ner, C.R., and D.V. Day. “Meta-Analytic Review of Leader– Member Exchange Theory: Correlates and Construct Issues.” Journal of Applied Psy- chology 82 (1997), pp. 827–44; and Liden, R.C.; S.J. Wayne; and D. Stillwell. “A Longi- tudinal Study on the Early Development of Leader–Member Exchanges.” Journal of Applied Psychology 78 (1993), pp. 662–74.
14.11 Ballinger, G.A., D.W. Lehman, and F.D. Schoorman. “Leader– Member Exchange and Turnover before and after Succession Events.” Organiza- tional Behavior and Human Decision Processes 113 (2010), pp. 25–36.
14.12 Graen and Uhl-Bien, “Relationship- Based Approach to Leadership.”
14.13 Martin, R., Guillaume, Y., Thomas, G., Lee, A., and O. Epitropaki. “Leader–Member Exchange (LMX) and Performance: A Meta- Analytic Review.” Personnel Psychol- ogy 69 (2016), pp. 67–121; Ilies, R.; J.D. Nahrgang; and F.P. Morgeson. “Leader– Member Exchange and Citizenship Behaviors: A Meta- Analysis.” Journal of Applied Psychology 92 (2007), pp. 269–77; and Dulebohn, J.H.; W.H. Bommer; R.C. Liden; R.L. Brouer; and G.R. Ferris. “A Meta-Analysis of Antecedents and Con- sequences or Leader– Member Exchange: Integrating the Past with an Eye Toward the Future.” Journal of Management 38 (2012), pp. 1715–59.
14.14 Rockstuhl, T.; J.H. Dulebohn; S. Ang; and L.M. Shore. “Leader–Member Exchange (LMX) and Culture: A Meta- Analysis of Correlates of LMX across 23 Countries.” Journal of Applied Psychology 97 (2012), pp. 1097–1130.
14.15 Stogdill, R.M. “Per- sonal Factors Associ- ated with Leadership: A Survey of the Literature.” Journal of
Applied Psychology 54 (1948), pp. 259–69.
14.16 Den Hartog, D.N., and P.L. Koopman. “Leadership in Organi- zations.” In Handbook of Industrial, Work, and Organizational Psychol- ogy, Vol. 2, ed. N. Anderson; D.S. Ones; H.K. Sinangil; and C. Viswesvaran. Thou- sand Oaks, CA: Sage, 2002, pp. 166–87.
14.17 Yukl, Leadership in Organizations; and Zaccaro, S.J. “Trait- Based Perspectives of Leadership.” American Psychologist 62 (1998), pp. 6–16.
14.18 DeRue, D.S., J.D. Nah- rgang; N. Wellman; and S.E. Humphrey. “Trait and Behavioral Theories of Leader- ship: An Integration and Meta-Analytic Test of Their Validity.” Personnel Psychology 64 (2011), pp. 7–52.
14.19 Vroom, V.H. “Leadership and the Decision-Making Process.” Organiza- tional Dynamics 28 (2000), pp. 82–94; and Yukl, Leadership in Organizations.
14.20 Lueneburger, C. “Les- sons from Chrysler: How to Rev Up a Purpose-Driven Cul- ture.” The Guardian, July 31, 2014: https:// www.theguardian .com/sustainable- business/2014/jul/31/ leaders-chrysler- bankruptcy-automobile- marchionne-ceo-detroit; and Taylor, A.
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“Chrysler’s Speed Merchant.” Fortune, September 6, 2010, p. 82.
14.21 Vroom, “Leadership and the Decision- Making Process”; and Yukl, Leadership in Organizations.
14.22 Source: Bryant, A. Quick and Nimble: Lessons from Leading CEOs on How to Cre- ate a Culture of Innova- tion. New York: Times Books, 2014.
14.23 Vroom, “Leadership and the Decision- Making Process”; and Yukl, Leadership in Organizations.
14.24 Source: Bryant, A. The Corner Office: Indispens- able and Unexpected Lessons from CEOs on How to Lead and Suc- ceed. New York: Times Books, 2011.
14.25 Vroom, “Leadership and the Decision- Making Process”; and Yukl, Leadership in Organizations.
14.26 Source: Mullany, A. “Can American Apparel Mend the Seam?” Fast Company, September 2016, pp. 88-96.
14.27 Source: Bryant, A. The Corner Office: Indispens- able and Unexpected Lessons from CEOs on How to Lead and Suc- ceed. New York: Times Books, 2011.
14.28 Vroom, “Leadership and the Decision- Making Process.”
14.29 Miller, K.I., and P.R. Monge. “Participation,
Satisfaction, and Productivity: A Meta- Analytic Review.” Academy of Management Journal 29 (1986), pp. 727–53; and Wagner, J.A. III. “Par- ticipation’s Effects on Performance and Satisfaction: A Recon- sideration of Research Evidence.” Academy of Management Review 19 (1994), pp. 312–30.
14.30 Vroom, “Leadership and the Decision- Making Process.”
14.31 Rogelberg, S.G.; D.J. Leach; P.B. Warr; and J.L. Burnfield. “ ‘Not Another Meeting!’ Are Meeting Time Demands Related to Employee Well- Being?” Journal of Applied Psychology 91 (2006), pp. 86–96.
14.32 Source: Yang, J.L. “What’s the Secret to Running Great Meetings?” Fortune, October 27, 2008, p. 26.
14.33 Terlep, S. “GM’s Plod- ding Culture Vexes Its Impatient CEO.” The Wall Street Journal Online, April 7, 2010.
14.34 Vroom, “Leadership and the Decision- Making Process”; Vroom, V.H., and A.G. Jago. The New Leader- ship: Managing Partici- pation in Organizations. Englewood Cliffs, NJ: Prentice Hall, 1988; Vroom, V.H., and A.G. Jago. “Decision Mak- ing as a Social Process: Normative and Descriptive Models of Leader Behavior.”
Decision Sciences 5 (1974), pp. 743–69; and Vroom, V.H., and P.W. Yetton. Leader- ship and Decision Making. Pittsburgh, PA: University of Pitts- burgh Press, 1973.
14.35 Source: Adams, R., and L.A. Schuker. “Time Inc. CEO Ousted after Six Months.” The Wall Street Journal Online, February 18, 2011.
14.36 Aditya, R.N.; R.J. House; and S. Kerr. “Theory and Practice of Leadership: Into the New Millen- nium.” In Industrial and Organizational Psychology: Linking Theory with Practice, ed. C.L. Cooper and E.A. Locke. Malden, MA: Blackwell, 2000, pp. 130–65; House, R.J., and R.N. Aditya. “The Social Scientific Study of Leadership: Quo Vadis?” Journal of Management 23 (1997), pp. 409–73; and Yukl, Leadership in Organizations.
14.37 Vroom, V.H., and A.G. Jago. “On the Validity of the Vroom-Yetton Model.” Journal of Applied Psychology 63 (1978), pp. 151–62. See also Vroom and Yetton, Leadership and Deci- sion Making; Vroom and Jago, The New Leadership; and Field, R.H.G. “A Test of the Vroom-Yetton Norma- tive Model of Leader- ship.” Journal of Applied Psychology 67 (1982), pp. 523–32.
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14.38 Vroom and Yetton, Leadership and Deci- sion Making.
14.39 Source: Bryant, A. The Corner Office: Indispensable and Unexpected Lessons from CEOs on How to Lead and Succeed. New York: Times Books, 2011.
14.40 Hemphill, J.K. Leader Behavior Description. Columbus: Ohio State University, 1950. Cited in Fleishman, E.A.; E.F. Harris; and H.E. Burtt. Leadership and Supervision in Industry: An Evaluation of a Supervisory Training Program. Columbus: Bureau of Educational Research, Ohio State University, 1955.
14.41 Hemphill, J.K., and A.E. Coons. “Develop- ment of the Leader Behavior Description Questionnaire.” In Leader Behavior: Its Description and Mea- surement, ed. R.M. Stog- dill and A.E. Coons. Columbus: Bureau of Business Research, Ohio State University, 1957, pp. 6–38.
14.42 Fleishman, E.A. “The Description of Supervisory Behav- ior.” Journal of Applied Psychology 37 (1953), pp. 1–6; Fleishman et al., Leadership and Supervision in Industry; Hemphill and Coons, “Develop- ment of the Leader Behavior Description Questionnaire”; and Halpin, A.W., and B.J. Winer. Studies in Aircrew Composition:
The Leadership Behav- ior of the Airplane Commander (Techni- cal Report No. 3). Columbus: Personnel Research Board, Ohio State University, 1952. Cited in Fleishman et al., Leadership and Supervision in Industry.
14.43 Fleishman, “The Description of Super- visory Behavior”; Fleishman et al., Lead- ership and Supervision in Industry; and Fleish- man, E.A., and D.R. Peters. “Interpersonal Values, Leadership Attitudes, and Mana- gerial ‘Success.’” Per- sonnel Psychology 15 (1962), pp. 127–43.
14.44 Yukl, Leadership in Organizations.
14.45 Adams, E. “A Day in the Life of J.Crew”s Mickey Drexler.” Racked.com, June 2, 2015: http:// www.racked.com/ 2015/6/2/8706979/ mickey-drexler-j- crew-office; and Paumgarten, N. “The Merchant.” The New Yorker, September 20, 2010, pp. 74–87.
14.46 Fleishman, “The Description of Super- visory Behavior”; Fleishman et al., Leadership and Super- vision in Industry; and Fleishman and Peters, “Interpersonal Values.”
14.47 Yukl, Leadership in Organizations.
14.48 Source: Brady, D. “Can GE Still Manage?” Bloomberg Businessweek, April 25, 2010, pp. 27–32.
14.49 Garvin, D.A. “How Google Sold Its Engineers on Manage- ment.” Harvard Busi- ness Review 91 (2013), pp. 74–82; and Bryant, A. Quick and Nimble.
14.50 Katz, D.; N. Mac- coby; and N. Morse. Productivity, Supervi- sion, and Morale in an Office Situation. Ann Arbor: Institute for Social Research, Uni- versity of Michigan, 1950; Katz, D.; N. Maccoby; G. Gurin; and L. Floor. Pro- ductivity, Supervision, and Morale among Railroad Workers. Ann Arbor: Survey Research Center, Uni- versity of Michigan, 1951; Katz, D., and R.L. Kahn. “Some Recent Findings in Human-Relations Research in Industry.” In Readings in Social Psychology, ed. E. Swanson; T. New- comb; and E. Hartley. New York: Holt, 1952, pp. 650–65; Likert, R. New Patterns of Man- agement. New York: McGraw-Hill, 1961; and Likert, R. The Human Organization. New York: McGraw- Hill, 1967.
14.51 Fleishman, E.A. “Twenty Years of Consideration and Structure.” In Current Developments in the Study of Leadership, ed. E.A. Fleishman and J.G. Hunt. Carbon- dale: Southern Illinois Press, 1973, pp. 1–37.
14.52 Judge, T.A.; R.F. Piccolo; and R. Ilies.
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“The Forgotten Ones? The Validity of Consideration and Initiating Structure in Leadership Research.” Journal of Applied Psychology 89 (2004), pp. 36–51.
14.53 Aditya et al., “Theory and Practice of Leader- ship”; DenHartog and Koopman, “Leadership in Organizations”; House and Aditya, “The Social Scientific Study of Leadership”; Korman, A.K. “ ‘Con- sideration,’ ‘Initiating Structure,’ and Orga- nizational Criteria—A Review.” Personnel Psychology 19 (1966), pp. 349–61; Yukl, Leadership in Organi- zations; and Yukl, G., and D.D. Van Fleet. “Theory and Research on Leadership in Organizations.” In Handbook of Industrial and Organizational Psychology, Vol. 3, ed. M.D. Dunnette and L.M. Hough. Palo Alto, CA: Consulting Psychologists Press, 1992, pp. 147–97.
14.54 Judge et al., “The Forgotten Ones?”
14.55 Source: Brunner, R. “I’m a Shepherd and I’m a warrior.” Fast Company, April 2017, pp. 58–68, 90–92.
14.56 Hersey, P., and K.H. Blanchard. “Life Cycle Theory of Leader- ship.” Training and Development Journal, May 1969, pp. 26–34; Hersey, P., and K.H. Blanchard. “So You
Want to Know Your Leadership Style?” Training and Develop- ment Journal, Febru- ary 1974, pp. 22–37; Hersey, P., and K.H. Blanchard. “Revisiting the Life-Cycle Theory of Leadership.” Train- ing and Development, January 1996, pp. 42–47; and Hersey, P., and K.H. Blanchard. Management of Organi- zational Behavior: Lead- ing Human Resources, 9th ed. Upper Saddle River, NJ: Pearson, 2008.
14.57 Hersey and Blanchard, Management of Orga- nizational Behavior.
14.58 Hersey and Blanchard, “Revisiting the Life- Cycle Theory of Leadership.”
14.59 Greenfeld, K.T. “Can GoPro Rise Again?” Fast Company, November 2016, pp. 76–81, 100.
14.60 Fernandez, C.F., and R.P. Vecchio. “Situ- ational Leadership Revisited: A Test of an Across-Jobs Per- spective.” Leadership Quarterly 8 (1997), pp. 67–84.
14.61 Graeff, C.L. “Evolu- tion of Situational Leadership Theory: A Critical Review.” Leadership Quarterly 8 (1997), pp. 153–70.
14.62 Vecchio, R.P. “Situational Leader- ship Theory: An Examination of a Prescriptive Theory.” Journal of Applied Psychology 72 (1987),
pp. 444–51; and Norris, W.R., and R.P. Vecchio. “Situ- ational Leadership Theory: A Replica- tion.” Group and Organization Manage- ment 17 (1992), pp. 331–42.
14.63 Vecchio, “Situational Leadership Theory”; Norris and Vecchio, “Situational Leader- ship Theory: A Replication”; and Blank, W.; J.R. Weitzel; and S.G. Green. “A Test of Situational Leadership Theory.” Personnel Psychology 43 (1990), pp. 579–97.
14.64 Fernandez and Vec- chio, “Situational Leadership Theory Revisited.”
14.65 Bass, B.M., and R.E. Riggio. Transforma- tional Leadership, 2nd ed. Mahwah, NJ: Erlbaum, 2006; Bass, B.M. Leadership and Performance beyond Expectations. New York: Free Press, 1985; and Burns, L.M. Leadership. New York: Harper & Row, 1978.
14.66 Bass, Leadership and Performance beyond Expectations.
14.67 Ibid.
14.68 Source: Larson, A. The President Nobody Knew. New York: Popular Library, 1968, p. 68.
14.69 Source: Truman, H.S., Memoirs. New York: Doubleday, 1956.
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14.70 Bass and Riggio, Trans- formational Leadership.
14.71 Source: Ibid.; and Bass, B.M., and B.J. Avolio. MLQ: Multifactor Leadership Questionnaire. Red- wood City, CA: Mind Garden, 2000.
14.72 Bass and Riggio, Transformational Lead- ership; Bass, Leader- ship and Performance Beyond Expectations; and Burns, Leadership.
14.73 Bass and Riggio, Trans- formational Leadership.
14.74 Source: Bass, Leader- ship and Performance beyond Expectations.
14.75 Source: Bass and Riggio, Transforma- tional Leadership; and Bass and Avolio, MLQ.
14.76 Bass and Riggio, Transformational Leadership.
14.77 Source: Ibid.; and Bass and Avolio, MLQ.
14.78 Bass and Riggio, Transformational Leadership.
14.79 Source: Ibid.; and Bass and Avolio, MLQ.
14.80 Judge, T.A., and R.F. Piccolo. “Transforma- tional and Transac- tional Leadership: A Meta-Analytic Test of Their Relative Valid- ity.” Journal of Applied Psychology 89 (2004), pp. 755–68.
14.81 Ibid.
14.82 Bass and Riggio, Trans- formational Leadership.
14.83 Koehn, N. F. “HIS Legacy.” Fortune, November 11, 2009, pp. 110–14.
14.84 Blumenthal, K. Steve Jobs: The Man Who Thought Different. New York: Feiwel, 2012; and Isaacson, W. Steve Jobs. New York: Simon & Schuster, 2011.
14.85 Kane, Y. I. “Jobs Quits as CEO.” The Wall Street Journal Online, August 25, 2011; and Friedman, L. “Steve Jobs Takes Medical Leave of Absence.” MacWorld, April 2011, p. 12.
14.86 Source: Bass and Riggio, Transforma- tional Leadership; and Bass and Avolio, MLQ.
14.87 Conger, J.A. “Char- ismatic and Transfor- mational Leadership in Organizations: An Insider’s Per- spective on these Developing Research Streams.” Leadership Quarterly 10 (1999), pp. 145–79.
14.88 Young, J.S., and W.L. Simon. iCon: Steve Jobs—The Greatest Sec- ond Act in the History of Business. Hoboken, NJ: Wiley, 2005.
14.89 Johnson, A.M.; P.A. Vernon; J.M. McCar- thy; M. Molso; J.A. Harris; and K.J. Jang. “Nature vs. Nurture: Are Leaders Born or Made? A Behavior Genetic Investigation of Leadership Style.” Twin Research 1 (1998), pp. 216–23.
14.90 Judge, T.A., and J.E. Bono. “Five-Factor Model of Personality and Transformational Leadership.” Journal of
Applied Psychology 85 (2000), pp. 751–65.
14.91 Bass and Riggio, Transformational Leadership.
14.92 Conger, “Charis- matic and Transfor- mational Leadership in Organizations.”
14.93 Source: Bass and Riggio, Transforma- tional Leadership; and Bass and Avolio, MLQ.
14.94 Young and Simon, iCon.
14.95 Source: Young and Simon, iCon.
14.96 Bass and Riggio, Transformational Leadership.
14.97 Source: Bass and Riggio, Transforma- tional Leadership; and Bass and Avolio, MLQ. Ibid.; and Bass and Avolio, MLQ.
14.98 Source: Isaacson, Steve Jobs.
14.99 Bass and Riggio, Transformational Leadership.
14.100 Source: Ibid.; and Bass and Avolio, MLQ.
14.101 Young and Simon, iCon.
14.102 Mio, J.S.; R.E. Rig- gio; S. Levin; and R. Reese. “Presidential Leadership and Charisma: The Effects of Meta- phor.” Leadership Quarterly 16 (2005), pp. 287–94.
14.103 Conger, “Charis- matic and Transfor- mational Leadership in Organizations.”
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14.104 Bligh, M.C.; J.C. Kohles; and J.R. Meindl. “Charisma under Crisis: Presi- dential Leadership, Rhetoric, and Media Responses before and after the Sep- tember 11th Terrorist Attacks.” Leadership Quarterly 15 (2004), pp. 211–39.
14.105 Bligh, M.C., and J.C. Kohles. “The Enduring Allure of Charisma: How Barack Obama Won the Historic 2008 Presidential Elec- tion.” Leadership Quarterly 20 (2009), pp. 483–92.
14.106 Lowe, K.B.; K.G. Kroeck; and N. Sivasubramaniam. “Effectiveness Correlates of Transformational and Transactional Leadership: A Meta- Analytic Review of the MLQ Litera- ture.” Leadership Quarterly 7 (1996), pp. 385–425.
14.107 Howell, J.M., and B.J. Avolio. “Trans- formational Leader- ship, Transactional Leadership, Locus of Control, and Sup- port for Innovation: Key Predictors of Consolidated- Business-Unit Perfor- mance.” Journal of Applied Psychology 78 (1993), pp. 891–902; Howell, J.M.; D.J. Neufeld; and B.J. Avolio. “Examining the Relationship of Leadership and
Physical Distance with Business Unit Performance.” Lead- ership Quarterly 16 (2005), pp. 273–85; Keller, R.T. “Trans- formational Leader- ship, Initiating Structure, and Sub- stitutes for Leader- ship: A Longitudinal Study of Research and Development Project Team Perfor- mance.” Journal of Applied Psychology 91 (2006), pp. 202–10; and Waldman, D.A.; G.G. Ramirez; R.J. House; and P. Puranam. “Does Leadership Matter? CEO Leadership Attributes and Profit- ability under Condi- tions of Perceived Environmental Uncertainty.” Acad- emy of Management Journal 44 (2001), pp. 134–43.
14.108 Howell, J.M., and K.E. Hall-Merenda. “The Ties That Bind: The Impact of Leader–Member Exchange, Transfor- mational and Trans- actional Leadership, and Distance on Pre- dicting Follower Per- formance.” Journal of Applied Psychology 84 (1999), pp. 680–94; Piccolo, R.F., and J.A. Colquitt. “Transformational Leadership and Job Behaviors: The Medi- ating Role of Core Job Characteristics.” Academy of Manage- ment Journal 49 (2006), pp. 327–40;
and Wang, H.; K.S. Law; R.D. Hackett; D. Wang; and Z.X. Chen. “Leader– Member Exchange as a Mediator of the Relationship between Transformational Leadership and Fol- lowers’ Performance and Organizational Citizenship Behav- ior.” Academy of Management Journal 48 (2005), pp. 420–32.
14.109 Judge and Piccolo, “Transformational and Transactional Leadership”; Pod- sakoff, P.M.; S.B. MacKenzie; J.B. Paine; and D.G. Bachrach. “Organi- zational Citizenship Behaviors: A Critical Review of the Theo- retical and Empirical Literature and Sug- gestions for Future Research.” Journal of Management 26 (2000), pp. 513–63.
14.110 Judge and Piccolo, “Transformational and Transactional Leadership.”
14.111 Avolio, B.J.; W. Zhu; W. Koh; and P. Bhatia. “Transfor- mational Leadership and Organizational Commitment: Mediating Role of Psychological Empowerment and Moderating Role of Structural Distance.” Journal of Organizational Behavior 25 (2004), pp. 951–68; Kirkpat- rick, S.A., and E.A.
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Locke. “Direct and Indirect Effects of Three Core Char- ismatic Leadership Components on Performance and Attitudes.” Journal of Applied Psychol- ogy 81 (1996), pp. 36–51; and Shamir, B.; E. Zakay; E. Breinin; and M. Popper. “Correlates of Charismatic Leader Behaviors in Military Units: Sub- ordinates’ Attitudes, Unit Characteristics, and Superiors’ Appraisals of Leader Performance.” Acad- emy of Management Journal 41 (1998), pp. 387–409.
14.112 LePine, M.A.; Y. Zhang; E.R. Craw- ford; and B.L. Rich. “Turning Their Pain to Gain: Charismatic Leader Influence on Follower Stress Appraisal and Job Performance.” Acad- emy of Management Journal 59 (2016), pp. 1036–59.
14.113 Podsakoff, P.M.; S.B. MacKenzie; and W.H. Bommer. “Transformational Leader Behaviors and Substitutes for Leadership as Deter- minants of Employee Satisfaction, Com- mitment, Trust, and Organizational Citi- zenship Behaviors.” Journal of Manage- ment 22 (1996), pp. 259–98; Podsakoff, P.M.; S.B. MacKen- zie; R.H. Moorman;
and R. Fetter. “Trans- formational Leader Behaviors and their Effects on Followers’ Trust in Leader, Satisfaction, and Organizational Citi- zenship Behaviors.” Leadership Quarterly 1 (1990), pp. 107–42; and Shamir et al., “Correlates of Charismatic Leader Behaviors.”
14.114 Meyer, J.P.; D.J. Stanley; L. Her- scovitch; and L. Topolnytsky. “Affec- tive, Continuance, and Normative Commitment to the Organization: A Meta-Analysis of Antecedents, Correlates, and Consequences.” Journal of Vocational Behavior 61 (2002), pp. 20–52.
14.115 Walumbwa, F.O.; B.J. Avolio; and W. Zhu. “How Transfor- mational Leadership Weaves Its Influence on Individual Job Performance: The Role of Identification and Efficacy Beliefs.” Personnel Psychology 61 (2008), pp. 793–825.
14.116 Judge and Piccolo, “Transformational and Transactional Leadership.”
14.117 Piccolo and Colquitt, “Transformational Leadership and Job Behaviors.” See also Bono, J.E., and T.A. Judge. “Self- Concordance at
Work: Toward Understanding the Motivational Effects of Transformational Leaders.” Academy of Management Journal 46 (2003), pp. 554–71; and Shin, S.J., and J. Zhou. “Transforma- tional Leadership, Conservation, and Creativity: Evidence from Korea.” Acad- emy of Management Journal 46 (2003), pp. 703–14.
14.118 Bono, J.E., and R. Ilies. “Charisma, Positive Emotions, and Mood Conta- gion.” Leadership Quarterly 17 (2006), pp. 317–34; and McColl-Kennedy, J.R., and R.D. Anderson. “Impact of Leadership Style and Emotions on Subordinate Perfor- mance.” Leadership Quarterly 13 (2002), pp. 545–59.
14.119 Bono, J; H.J. Foldes; G. Vinson; and J.P. Muros. “Workplace Emotions: The Role of Supervision and Leadership.” Journal of Applied Psychology 92 (2007), pp. 1357–67.
14.120 Kerr, S., and J.M. Jermier. “Substitutes for Leadership: Their Meaning and Measurement.” Orga- nizational Behavior and Human Perfor- mance 22 (1978), pp. 375–403.
14.121 Howell, J.P.; P.W. Dorfman; and S.
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Kerr. “Moderator Variables in Leader- ship Research.” Acad- emy of Management Review 11 (1986), pp. 88–102.
14.122 Kerr and Jer- mier, “Substitutes for Leadership”; and Jermier, J.M., and S. Kerr. “‘Substitutes for Leadership: Their Meaning and Measurement’: Con- textual Recollections and Current Obser- vations.” Leadership Quarterly 8 (1997), pp. 95–101.
14.123 Howell, J.P.; D.E. Bowen; P.W. Dorf- man; S. Kerr; and P.M. Podsakoff. “Substitutes for Leadership: Effec- tive Alternatives to Ineffective Leader- ship.” Organizational Dynamics, Summer 1990, pp. 21–38.
14.124 Podsakoff, P.M., and S.B. MacKenzie. “Kerr and Jer- mier’s Substitutes for Leadership Model: Background, Empiri- cal Assessment, and Suggestions for Future Research.” Leadership Quarterly 8 (1997), pp. 117–25; Podsakoff, P.M.; B.P. Niehoff; S.B. MacKenzie; and M.L. Williams. “Do Substitutes for Lead- ership Really Substi- tute for Leadership? An Empirical Exami- nation of Kerr and Jermier’s Situational Leadership Model.” Organizational
Behavior and Human Decision Processes 54 (1993), pp. 1–44; Podsakoff et al., “Transformational Leadership Behav- iors and Substitutes for Leadership”; and Podsakoff, P.M.; S.B. MacKenzie; M. Ahearne; and W.H. Bommer. “Searching for a Needle in a Haystack: Trying to Identify the Illusive Moderators of Lead- ership Behavior.” Journal of Manage- ment 21 (1995), pp. 422–70.
14.125 Howell et al., “Substitutes for Leadership: Effective Alternatives.”
14.126 Ho, M. “2016 State of the Industry Report: Investment in Learning Increases for 4th Straight Year.” TD: Talent Development, Novem- ber 2016, pp. 30–35.
14.127 Source: Kranz, G. “A Higher Standards for Managers.” Work- force, June 11, 2007, pp. 21–26.
14.128 Source: Kranz, G. “Wal-Mart Drafts Leaders for Military- style Training.” Workforce, June 12, 2013, http://www. workforce.com/ article/20130612/ NEWS02/ 130619994/0/topics.
14.129 Gist, M.E., and D. McDonald-Mann. “Advances in Leader- ship Training and Development.” In
Industrial and Orga- nizational Psychology: Linking Theory with Practice, ed. C.L. Cooper and E.A. Locke. Malden, MA: Blackwell, 2000, pp. 52–71.
14.130 Reardon, N. “Making Leadership Personal.” T + D, March 2011, pp. 44–49.
14.131 Weinstein, M. “Farm- er’s Comprehensive Training Policy.” Training, January/ February 2013, pp. 42–44.
14.132 Ibid.; Dvir, T.; D. Eden; B.J. Avolio; and B. Shamir. “Impact of Transformational Leadership on Fol- lower Development and Performance: A Field Experiment.” Academy of Manage- ment Journal 45 (2000), pp. 735–44; and Barling, J.; T. Weber; and E.K. Kelloway. “Effects of Transformational Leadership Training on Attitudinal and Financial Outcomes: A Field Experiment.” Journal of Applied Psychology 81 (1996), pp. 827–32.
14.133 Barling et al., “Effects of Transfor- mational Leadership Training.”
14.134 Marcic, D.; J. Seltzer; and P. Vail, Organizational Behav- ior: Experiences and Cases. Cincinnati, OH: South-Western, 2001.
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CHAPTER 15 Organizational Structure
CHAPTER 16 Organizational Culture
5 P A R T
ORGANIZATIONAL MECHANISMS
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15
LEARNING GOALS
15.1 What is an organization’s structure, and what does it consist of? 15.2 What are the major elements of an organizational structure? 15.3 What is organizational design, and what factors does the organizational design process depend on? 15.4 What are some of the more common organizational forms that an organization might adopt for its
structure?
15.5 When an organization makes changes to its structure, how does that restructuring affect job performance and organizational commitment?
15.6 What steps can organizations take to reduce the negative effects of restructuring efforts?
After reading this chapter, you should be able to answer the following questions:
Organizational Structure
Ability
INDIVIDUAL OUTCOMES
INDIVIDUAL MECHANISMS
INDIVIDUAL CHARACTERISTICS
ORGANIZATIONAL MECHANISMS
Organizational Culture
Organizational Structure
Motivation
Trust, Justice, & Ethics
Teams: Characteristics &
Diversity Learning & Decision Making
Stress
Job Satisfaction
Leadership: Styles &
Behaviors
Organizational Commitment
Job Performance
GROUP MECHANISMS
Personality & Cultural Values
Teams: Processes &
Communication
Leadership: Power &
Negotiation
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W hen you sit down with the next Apple product you are using—whether that be your iPhone, your iPad, your MacPro, or whatever else—it’s worth
taking the time to think about why Apple has been so suc- cessful at creating products that seem to flow and work so well. You might think, “They’ve had some great visionary leaders like Steve Jobs and Tim Cook.” (They have.) You might think, “Well, they’ve got some brilliant people work- ing there.” (They do.) However, one of the big and some- what hidden reasons for Apple’s success over the years has been . . . wait for it . . . its organizational structure. Wait, what? That’s right, how Apple organizes its work, reporting relationships, and information flow have had a lot to do with why they have been so successful.
So how does Apple do it? The company is organized using a functional organizational structure. If you look at the executives in Apple (SVP of Software Engineering, Chief Design Officer, SVP of Hardware Engineering, SVP of Hard- ware Technologies), employees are organized around their expertise—what they bring to the table in terms of knowl- edge or skill. What you don’t see are executives in charge
of specific products (iPhone VP, Mac Pro VP) or regions (VP North America, VP Europe). When Steve Jobs came back and took over Apple for the second time, the first thing he did was reorganize the company back into a purely func- tional structure. Apple believes that this structure allows them to move more quickly, focus on collaboration above all things, and have “best in class” employees.
One advantage of not organizing around a product is that it makes it easier to get rid of products when they’ve out- lived their usefulness (iPod, Airport routers, Apple monitors). There simply isn’t anyone around worried about losing their job when a product needs to go away. So why don’t more companies take this approach? Simply put, it’s really hard to hold on to a functional structure as a company grows in size. That’s why a lot of Apple stakeholders and critics have been trying to push Apple to change as they’ve gotten big- ger because they believe Apple is leaving a lot of money on the table. Apple CEO Tim Cook has fought back though say- ing, “Apple is this unique company, unique culture that you can’t replicate. And I’m not going to witness or permit the slow undoing of it, because I believe in it so deeply.”
APPLE
©Bloomberg/Getty Images
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O R G A N I Z AT I O N A L S T R U C T U R E
As the Apple example illustrates, an organization’s structure can have a significant impact on its financial performance and ability to manage its employees and products. The decisions that CEO Tim Cook makes regarding the company’s organizational structure will have an impact on how employees communicate and cooperate with one another, how power is distributed, and how individuals view their work environment. In fact, an organization’s structure dictates more than you might think. We’ve spent a great deal of time in this book talking about how employee attitudes and behaviors are shaped by individual characteristics, such as personality and ability, and group mechanisms, such as teams and leaders. In this and the following chapter, we discuss how the organization as a whole affects employee attitudes and behavior. Match.com (the online dating service) CEO Sam Yagan was asked to describe one of the biggest lessons he had recently learned, and he replied, “The impact of organizational structure on a company’s ability to get, create, innovate, evolve, or just plain survive. Everyone knows that hiring, engaging, and retaining talent is a huge competitive issue, but I don’t think enough executives of companies big and small realize the impact the way they organize their talent has on the company’s overall productivity.”1
Think about some of the jobs you’ve held in the past (or perhaps the job you hope to have after graduation). What types of employees did you interact with on a daily basis? Were they employees who performed the same tasks that you performed? Or maybe they didn’t do exactly what you did, but did they serve the same customer? How many employees did your manager supervise? Was every decision you made scrutinized by your supervisor, or were you given a “long leash”? The answers to all of these questions are influenced by organizational structure. An organizational structure for- mally dictates how jobs and tasks are divided and coordinated between individuals and groups within the company. Organizational structures can be relatively simple when a company has only 5 to 20 employees but grow incredibly complex when an organization has tens of thousands of employees.
W H Y D O S O M E O R G A N I Z AT I O N S H AV E D I F F E R E N T S T R U C T U R E S T H A N OT H E R S ?
One way of getting a feel for an organization’s structure is by looking at an organizational chart. An organizational chart is a drawing that represents every job in the organization and the formal reporting relationships between those jobs. It helps organizational members and outsiders under- stand and comprehend how work is structured within the company. Figure 15-1 illustrates two
15.1 What is an organization’s structure, and what does it consist of?
FIGURE 15-1 Two Sample Organizational Structures
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sample organizational charts. In a real chart, the boxes would be filled with actual names and job titles. As you can imagine, as companies grow larger, their organizational charts get more complex. Can you imagine drawing an organizational chart that included every one of Walmart’s 2.2 million employees? Not only would that require a lot of boxes and a lot of paper, it would prob- ably take a couple of years to put together (plus, as soon as someone left the organization, it would be time to update the chart!).
E L E M E N TS O F O R GA N I Z AT I O N A L ST R U C T U R E The organizational charts described in this chapter are relatively simple and designed to illustrate specific points (if you want to see how complex some of these charts can get, do a search on the Internet for “organizational chart,” and you’ll begin to see how varied organizations can be in the way they design their company). Specifically, charts like those in Figure 15-1 can illustrate the five key elements of an organization’s structure. Those five key elements, summarized in Table 15-1, describe how work tasks, authority relationships, and decision-making responsibilities are orga- nized within the company. These elements will be discussed in the next several sections.
WORK SPECIALIZATION Work specialization is the way in which tasks in an organization are divided into separate jobs. In some organizations, this categorization is referred to as a company’s division of labor. How many tasks does any one employee perform? To some degree, work spe- cialization is a never-ending trade-off among productivity, flexibility, and worker motivation. Take an assembly-line worker at Ford as an example. Henry Ford was perhaps the earliest (and clearly most well-known) believer in high degrees of work specialization. He divided tasks among his manufacturing employees to such a degree that each employee might perform only a single task, over and over again, all day long. Having only one task to perform allowed those employees to be extremely productive at doing that one thing. It also meant that training new workers was much easier when replacements were needed.
However, there are trade-offs when organizations make jobs highly specialized. Highly special- ized jobs can cause organizations to lose the ability associated with employees who can be flexible in what they do. By spending all their time performing specialized tasks well, employees fail to update or practice other skills. Accounting majors, for example, might specialize in taxes or audit- ing. Some larger companies might hire these graduates for their ability to do either auditing or tax—but not both. Other companies might be looking for an accountant who can perform either aspect well, depending on how they divide up accounting duties within their organization. Still other companies might want to hire “general managers” who understand accounting, finance, management, marketing, and operations as a part of their job. Thus, high levels of specialization
15.2 What are the major elements of an organizational structure?
TABLE 15-1 Elements of Organizational Structure
ORGANIZATIONAL STRUCTURE DIMENSION DEFINITION
Work specialization The degree to which tasks in an organization are divided into separate jobs.
Chain of command Answers the question of “who reports to whom?” and signifies formal authority relationships.
Span of control Represents how many employees each manager in the organiza- tion has responsibility for.
Centralization Refers to where decisions are formally made in organizations.
Formalization The degree to which rules and procedures are used to standard- ize behaviors and decisions in an organization.
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may be acceptable in larger firms with more employees but can be problematic in smaller firms in which employees must be more flexible in their job duties. Aetna, the Hartford, Connecticut– based health insurer, publishes more than 1,300 different job titles, each of which has its own list of the competencies that employees in those jobs must perform.2
Organizations may also struggle with employee job satisfaction when they make jobs highly specialized. If you recall from Chapter 4 on job satisfaction, we discussed five core characteristics of jobs that significantly affect satisfaction. One of those characteristics was variety, or the degree to which the job requires a number of different activities involving a number of different skills and talents.3 Employees tend to be more satisfied with jobs that require them to perform a number of different kinds of activities. Even though you might be very efficient and productive performing a job with only one task, how happy would you be to perform that job on a daily basis? One of the most famous films in early motion picture history was Modern Times, a film in which Charlie Chaplin was relegated to performing the same task over and over, very quickly. The movie ridi- culed work specialization and the trend of treating employees as machines.
CHAIN OF COMMAND The chain of command within an organization essentially answers the question “Who reports to whom?” Every employee in a traditional organizational structure has one person to whom they report. That person then reports to someone else, and on and on, until the buck stops with the CEO (though in a public company, even the CEO is responsible to the board of directors). The chain of command can be seen as the specific flow of author- ity down through the levels of an organization’s structure. There are some companies such as Washington–based video-game maker Valve Corporation whose 300 employees work with no managers or assigned projects. (Valve’s website lets you know the company has been “boss free” since its founding in 1996.4) However, these types of organizations are the exception and not the norm. Most organizations depend on a chain of command’s flow of authority to attain order, con- trol, and predictable performance.5 Some newer organizational structures make this chain of com- mand a bit more complex. It has become common to have positions that report to two or more different managers. A newer trend for a number of companies, such as Oracle, is to have co-CEOs. However, Whole Foods and Chipotle have recently dropped their co-CEO structures primarily to streamline decision making. Chipotle CEO Steve Ells stated that, “a single, focused message to our teams and a focus on just the things that have made us successful is what we need now.”6 For one example of how chain of command can greatly affect operations within an organization see this chapter’s OB on Screen.
SPAN OF CONTROL A manager’s span of control represents how many employees he or she is responsible for in the organization. The organizational charts in Figure 15-1 provide an illustra- tion of the differences in span of control. In the top chart, each manager is responsible for leading two subordinates. In most instances, this level would be considered a narrow span of control. In the bottom chart, the manager is responsible for 10 employees. Typically, this number would be considered a wide span of control. Of course, the key question in many organizations is how many employees one manager can supervise effectively. Answering that question requires a better under-
standing of the benefits of narrow and wide spans of control.
Narrow spans of control allow managers to be much more hands- on with employees, giving them the opportunity to use directive leadership styles while develop- ing close mentoring relationships with employees. A narrow span of control is especially important if the manager has substantially more skill or expertise than the subordinates. Early writings on management assumed that the narrower the span of control, the
Modern Times (1932), starring Charlie Chaplin,
ridiculed work specializa- tion and the treating of
employees as machines. Have things changed
since then?
©AF archive/Alamy
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OB ON SCREEN THE IMITATION GAME
Who is your commanding officer?
With those words Alan Turing (Benedict Cumberbatch) questions Commander Alastair Denniston (Charles Dance) to try to figure out how he can get around the chain of command in The Imita- tion Game (Dir: Morten Tyldum, Weinstein Company, 2014). Turing, a mathematical genius and an expert in cryptology (the study of codes and codebreaking), is hired by Denniston to join the British military during World War II. A group of cryptologists are brought in to try to break the code created by the “Enigma Machine,” which is allowing the Nazis to send secure wireless messages both to their submarines and military in the field. The most complicated part of solving the codes the machine writes and reads is that the code is reset every single day, which doesn’t leave enough time to solve the problem before having to start over. At the time of the movie, things are not going well for the Allied countries and the Nazis’ unfettered use of the Enigma machine is allowing them to win the war.
Turing, who thinks most of those working around him are dimwits, wants to build a machine of his own creation that will break the code—“only a machine can defeat another machine.” The problem? Turing’s machine is going to cost 100,000 pounds, and he hasn’t convinced the others to believe in its potential worth. Hugh Alexander (Matthew Goode) is Turing’s direct supervisor for the code breaking group and has said no to his ideas. Turing attempts to go around him to Dennis- ton, who resoundly orders that he needs to follow the centralized decision-making structure set up within the military structure. Denniston argues that wars are won with “order, discipline, chain of command.” When Turing asks who Denniston’s superior officer is, Denniston incredulously tells him, “Winston Churchill, #10 Downing Street, London, England SW1. If you have a problem with my decision, you may take it up with him.” Turing, unfazed by this and somewhat oblivious to how things are supposed to work in an organizational setting, simply writes Churchill a letter directly to try to get the resources and decision-making capability that he needs to get his machine built.
©The Weinstein Company/Photofest
more productive employees would become.7 However, a narrow span of control requires organiza- tions to hire many managers, which can significantly increase labor costs. Moreover, if the span of control becomes too narrow, employees can become resentful of their close supervision and long for more latitude in their day-to-day decision making. In fact, current research suggests that a moderate span of control is best for an organization’s productivity.8 This relationship is illustrated
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in Figure 15-2. Note that organizational performance increases as span of control increases, but only up to the point that managers no longer have the ability to coordinate and supervise the large numbers of employees underneath them. Most organizations work hard to try to find the right balance, and this balance differs for every organization, depending on its unique circumstances. However, there is no question that spans of control in organizations have increased significantly in recent years.9 Although extremely rare, organizations such as Coca-Cola have gone through structures in which vice presidents have had up to 90 employees reporting to them!10
An organization’s span of control affects how “tall” or “flat” its organizational chart becomes. For example, the top panel of Figure 15-1 depicts a tall structure with many hierarchical levels and a narrow span of control, whereas the bottom panel depicts a flat organization with few levels and a wide span of control. Think about what happens when an organization becomes “taller.” First, more layers of management mean having to pay more management salaries. Second, communi- cation in the organization becomes more complex as each new layer becomes one more point through which information must pass when traveling upward or downward. Third, the organiza- tion’s ability to make decisions becomes slower, because approval for decisions has to be autho- rized at every step of the hierarchy.
Over the past three decades, organizations worked to become flatter to reduce the costs associ- ated with multiple layers of management and increase their ability to adapt to their environment. When Intel, for example, announced a reduction in its managerial ranks of 1,000 positions (or 1 percent of its 100,000 employees), a spokesperson announced that “This [layoff] is designed to improve costs and improve decision making and communications across the company.”11 McDonald’s recently reorganized in a way that is supposed to make their decision making faster and more focused on their customers. CEO Steve Easterbrook added, “Our new structure will be supported by streamlined teams with fewer layers and less bureaucracy.”12
CENTRALIZATION Centralization reflects where decisions are formally made in organizations. If only the top managers within a company have the authority to make final decisions, we would say that the organization has a highly “centralized” structure. In contrast, if decision-making authority is pushed down to lower-level employees and these employees feel empowered to make decisions
FIGURE 15-2 Span of Control and Organizational Performance
High Performance
Low Performance
Narrow Span of Control
Wide Span of Control
Source: Adapted from N.A. Theobald and S. Nicholson-Crotty, “The Many Faces of Span of Control: Organizational Structure Across Multiple Goals,” Administration and Society 36 (2005), pp. 648–60.
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on their own, an organization has a “decentralized” structure. Decentralization becomes neces- sary as a company grows larger. Sooner or later, the top management of an organization will not be able to make every single decision within the company. Centralized organizational structures tend to concentrate power and authority within a relatively tight group of individuals in the firm, because they’re the ones who have formal authority over important decisions.
Many organizations are moving toward a more decentralized structure. A manager can’t have 20 employees reporting to him or her if those employees aren’t allowed to make some decisions on their own. Airbus, the French manufacturer of airplanes, is doing its best to decentralize decision making within the company. CEO Fabrice Brégier believes it’s taking the company way too long to make decisions. “We make some of the world’s most complex products, but that doesn’t mean we have to be overly complex about how we do things.” His goal is to give Airbus’s production managers more independence to set priorities and move more quickly. Brégier states, “We need to funnel this down to just the people required to make decisions.”13 Greg Page, Executive Chairman of Cargill, a $100 billion conglomerate with 70 separate business units, says the company’s senior governing body has only six people on purpose. He states, “By keeping the [leadership team] too small to conduct the day-to-day affairs of the company, it forces that accountability and ownership down the line. The role of the [team] is to put our noses in and keep our fingers out.”14
However, it’s also important to realize that some organizations might choose to hold on to cen- tralized control regardless of how big they get. Pennsylvania–headquartered Sheetz convenience stores are one of the fastest-growing store operators in the country, with 440 outlets and annual rev- enues of $7 billion. Still run as a family business, the Sheetz family likes to maintain a high degree of control over what happens. While most companies decentralize as they get bigger for the sake of sanity, the Sheetz family has not ceded much control to those outside the family. Soon-to-be-CEO Joe Sheetz believes having the family retain decision-making rights is a big part of the company’s success, saying, “We don’t play well with others.”15 Have the organizations where you’ve worked been largely centralized or decentralized? See our OB Assessments feature to find out.
FORMALIZATION A company is high in formalization when there are many specific rules and procedures used to standardize behaviors and decisions. Although not something you can necessar- ily see on an organizational chart, the impact of formalization is felt throughout the organization. Rules and procedures are a necessary mechanism for control in every organization. Although the word formalization has a somewhat negative connotation, think about the reactions if McDonald’s made its most popular menu items in different ways at each location. Or think about this: Would it bother you if every time you called Dell for technical support, you got an operator who treated you differently and gave you conflicting answers? Formalization is a necessary coordination mechanism that organizations rely on to get a standardized product or deliver a standardized service.
Alcoa’s Michigan Casting Center, a leading automotive part supplier, was plagued by the fact that it could have two machine operators running the same machine on two different shifts and get up to a 50 percent performance difference in output and quality between the workers. The company conducted a study to identify the best practices for each machine in its plant. These best practices became standard operating procedures for each worker, and that formalization allowed the company to get a more predictable level of output.16 Companies such as W.L. Gore, the New- ark, Delaware–based manufacturer of Gore-Tex, fall at the other extreme when it comes to formal- ization.17 Whereas most companies have titles for their jobs and job descriptions that specify the tasks each job is responsible for, Bill Gore (company founder) felt that such formalization would stifle communication and creativity. After one of his employees mentioned that she needed to put some kind of job title on a business card to hand out at an outside conference, Gore replied that she could put “supreme commander” on the card for all he cared. She liked the title so much that she followed through on his suggestion, and it became a running joke throughout the com- pany.18 Recent research supports Gore’s view. A manager might try to make employees feel more empowered by decentralizing decision making, but evidence suggests this effect is negated when the employees’ job roles have a high level of formalization.19
ELEMENTS IN COMBINATION You might have noticed that some elements of an organiza- tion’s structure seem to go hand-in-hand with other elements. For example, wide spans of control tend to be associated with decentralization in decision making. A high level of work specialization
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OB ASSESSMENTS
SCORING AND INTERPRETATION:
Hierarchy of Authority: Sum up items 1–5. _______ Participation in Decision Making: Sum up items 6–9. _______
A centralized structure would be one in which Hierarchy of Authority is high and Participation in Decision Making is low. If your score is above 20 for Hierarchy of Authority and below 8 for Participation in Decision Making, your organization (or student group) has a highly centralized structure.
Source: Adapted from M. Schminke, R. Cropanzano, and D.E. Rupp, “Organization Structure and Fairness Perceptions: The Moderating Effects of Organizational Level,” Organizational Behavior and Human Decision Processes 89 (2002), pp. 881–905.
CENTRALIZATION Have you experienced life inside an organization with a highly centralized structure? This assess- ment is designed to measure two facets of what would be considered a centralized organizational structure. Those two facets are hierarchy of authority, which reflects the degree to which managers are needed to approve decisions, and participation in decision making, which reflects how involved rank-and-file employees are in day-to-day deliberations. Think about the last job you held (even if it was a part-time or summer job). Alternatively, think about a student group of yours that seems to have a definite “leader.” Then answer each question using the response scale provided. (Instruc- tors: Assessments on structure preferences and formalization can be found in the PowerPoints in the Connect Library’s Instructor Resources and in the Connect assignments for this chapter.)
1 STRONGLY DISAGREE
2 DISAGREE
3 UNCERTAIN
4 AGREE
5 STRONGLY
AGREE
1. There can be little action here until a supervisor approves a decision. ________
2. A person who wants to make his or her own decisions would be quickly discouraged.
________
3. Even small matters have to be referred to someone higher up for a final answer.
________
4. I have to ask my boss before I do almost anything. ________
5. Any decision I make has to have my boss’s approval. ________
6. I participate frequently in the decision to adopt new programs. ________
7. I participate frequently in the decision to adopt new policies and rules. ________
8. I usually participate in the decision to hire or adopt new group members. ________
9. I often participate in decisions that affect my working environment. ________
tends to bring about a high level of formalization. Moreover, if you take a closer look at the ele- ments, you might notice that many of the elements capture the struggle between efficiency and flexibility. Mechanistic organizations are efficient, rigid, predictable, and standardized organiza- tions that thrive in stable environments. Mechanistic organizations are typified by a structure that relies on high levels of formalization, a rigid and hierarchical chain of command, high degrees of
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work specialization, centralization of decision making, and narrow spans of control. In contrast, organic organizations are flexible, adaptive, outward-focused organizations that thrive in dynamic environments. Organic organizations are typified by a structure that relies on low levels of formal- ization, weak or multiple chains of command, low levels of work specialization, and wide spans of control. Table 15-2 sums up the differences between the two types of organizations.
If you think about the differences between the two types, it probably wouldn’t be too difficult to come up with a few companies that fall more toward one end of the continuum or the other. Where would you place Apple? Evidence indicates that a mechanistic or organic culture can have a significant effect on the types of employee practices a company adopts, such as selection, training, recruitment, compensation, and performance systems.20 In addition, organic structures are more likely to allow for transformational leadership to have a positive effect on employees.21 However, it’s important to remember that few organizations are perfect examples of either extreme. Most fall somewhere near the middle, with certain areas within the organization having mechanistic qualities and others being more organic in nature. Microsoft is a good example as an organization that has many organic qualities, but even within its own walls it had teams that worked completely apart from each other while developing a major software platform and when they came together, what each group had done was incompatible with the other—a mistake they tried to rectify during the creation of later versions of Windows.22 Although it’s tempting to label mechanistic as “bad” and organic as “good,” this perception is not necessarily true. Being mechanistic is the only way for many organizations to survive, and it can be a highly appropriate and fruitful way to structure work functions. To find out why that’s the case, we need to explore why organizations develop the kinds of structures they do.
O R GA N I Z AT I O N A L D E S I G N Organizational design is the process of creating, selecting, or changing the structure of an orga- nization. Ideally, organizations don’t just “let” a structure develop on its own; they proactively design it to match their specific circumstances and needs. Research indeed shows this is how it works in most cases.23 However, some organizations aren’t that proactive and find themselves with a structure that has unintentionally developed on its own, without any careful planning. Those
15.3 What is organizational design, and what factors does the organizational design process depend on?
TABLE 15-2 Characteristics of Mechanistic vs. Organic Structures
MECHANISTIC ORGANIZATIONS ORGANIC ORGANIZATIONS
High degree of work specialization; employ- ees are given a very narrow view of the tasks they are to perform.
Low degree of work specialization; employ- ees are encouraged to take a broad view of the tasks they are to perform.
Very clear lines of authority; employees know exactly whom they report to.
Although there might be a specified chain of command, employees think more broadly in terms of where their responsibilities lie.
High levels of hierarchical control; employees are not encouraged to make decisions with- out their manager’s consent.
Knowledge and expertise are decentralized; employees are encouraged to make their own decisions when appropriate.
Information is passed through vertical com- munication between an employee and his or her supervisor.
Lateral communication is encouraged, focus- ing on information and advice as opposed to orders.
Employees are encouraged to develop firm- specific knowledge and expertise within their area of specialization.
Employees are encouraged to develop knowledge and expertise outside of their specialization.
Source: Adapted from T. Burns and G.M. Stalker, The Management of Innovation (London: Tavistock, 1961).
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organizations may then be forced to change their struc- ture to become more effective. A number of factors should influence the process of orga- nizational design. Those fac- tors include the environment in which the organization does business, its corporate strategy and technology, and the size of the firm. However, for some firms in dire straits, changing the structure becomes a strat- egy in and of itself, often lead- ing to very poor results.24
BUSINESS ENVIRONMENT An organization’s business environment consists of its customers, competitors, suppliers, distributors, and other factors external to the firm, all of which have an impact on organizational design. One of the biggest factors in an environment’s effect on struc- ture is whether the outside environment is stable or dynamic. Stable environments don’t change frequently, and any changes that do occur happen very slowly. Stable environments allow orga- nizations to focus on efficiency and require little change over time. In contrast, dynamic envi- ronments change on a frequent basis and require organizations to have structures that are more adaptive.25 In a classic example, Sony made a well-publicized corporate mistake when it failed to meet the needs of its changing business environment to match Apple’s iPod.26 Because it took it so long to recognize and adapt to this environmental shift, Sony struggled to be profitable for a long time. More recently, Sony has come under fire again for its organizational structure when it failed to learn from a major computer hacking scandal in 2011 and fell victim to a similar, but more serious attack in 2014 because its units didn’t communicate with one another.27 Some would argue that the world is changing so fast that the majority of companies can no longer keep up.
COMPANY STRATEGY A company strategy describes an organization’s objectives and goals and how it tries to capitalize on its assets to make money. Although the myriad of organizational strategies is too involved to discuss here, two common strategies revolve around being either a low- cost producer or a differentiator.28 Companies that focus on a low-cost producer strategy rely on selling products at the lowest possible cost. To do this well, they have to focus on being as efficient as they can be. Such companies are more likely to take a mechanistic approach to organizational design. Other companies might follow a differentiation strategy. Rather than focusing on supply- ing a product or service at the lowest cost, these companies believe that people will pay more for a product that’s unique in some way. It could be that their product has a higher level of quality or offers features that a low-cost product doesn’t. A differentiation strategy often hinges on adjusting to changing environments quickly, which often makes an organic structure more appropriate.
TECHNOLOGY An organization’s technology is the method by which it transforms inputs into outputs. Very early on in the study of organizations, it was assumed that technology was the major determinant of an organization’s structure.29 Since then, the picture has become less clear regard- ing the appropriate relationship between technology and structure.30 Although not completely conclusive, research suggests that the more routine a technology is, the more mechanistic a struc- ture should be. In many ways, this suggestion makes perfect sense: If a company makes the exact same thing over and over, it should focus on creating that one thing as efficiently as possible by having high levels of specialization, formalization, and centralization. However, if technologies need to be changed or altered to suit the needs of various consumers, it follows that decisions would be more decentralized and the rules and procedures the organization relies on would need to be more flexible.
COMPANY SIZE There is no question that there is a significant relationship between company size, or the total number of employees, and structure.31 As organizations become larger, they need
Partially due to its orga- nizational structure, Sony
was unable to adjust to its changing business envi- ronment, allowing Apple to dominate the portable music player market with
its innovative line of iPods.
©Roman Tiraspolsky/Shutterstock
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to rely on some combination of specialization, formalization, and centralization to control their activities, thereby becoming more mechanistic in nature. When it comes to organizational per- formance, however, there is no definite answer as to when an organization’s structure should be revised, or “how big is too big.”32 As many organizations get bigger, they attempt to create smaller units within the firm to create a “feeling of smallness.” W.L. Gore did just that by attempting to prevent any one location in the company from having more than 150 employees. Top manage- ment was convinced that a size of 150 would still allow all the employees to talk to one another in the hallways.33 Matching this philosophy and subsequent to Gore, Robin Dunbar, an evolutionary psychologist, published research showing that individuals can only maintain personalized relation- ships with 150 people.34 Even companies such as Facebook and Netflix are very aware of what has become known as “Dunbar’s Number” of 150. Facebook Chief Product Officer Chris Cox says, “It’s one of the magic numbers in group sizes. I’ve talked to so many startup CEOs that after they pass this number, weird stuff starts to happen. The weird stuff means the company needs more structure for communications and decision-making.”35 Even if they can’t technically create smaller groups due to their overwhelming size, some companies such as PepsiCo and Mondelez Interna- tional snack food company (110,000 employees) are going so far as to send their employees to spend time in some technology and media start-up firms so that they can come back with a sense of “smallness” that they hope will create an entrepreneurial spirit within their larger organizations.36
C O M M O N O R GA N I Z AT I O N A L F O R M S Our discussion of organizational design described how an organization’s business environment, strategy, technology, and size conspire to make some organizational structures more effective than others. Now we turn our attention to a logical next question: What structures do most organiza- tions utilize? The sections that follow describe some of the most common organizational forms. As you read their descriptions, think about whether these forms would fall on the mechanistic or organic side of the structure continuum. You might also consider what kinds of design factors would lead an organization to choose that particular form.
SIMPLE STRUCTURES Simple structures are perhaps the most common form of organizational design, primarily because there are more small organizations than large ones. In fact, more than 80 percent of employing organizations have fewer than 19 employees.37 Small accounting and law firms, family-owned grocery stores, individual-owned retail outlets, independent churches, and landscaping services are all organizations that are likely to use a simple structure. Figure 15-3 shows a simple structure for a manager-owned restaurant. The figure reveals that simple struc- tures are just that: simple. Simple structures are generally used by extremely small organizations in which the manager, president, and owner are all the same person. A simple structure is a flat organization with one person as the central decision-making figure; it is not large enough to have a high degree of formalization and will have only very basic differences in work specialization.
A simple structure makes perfect sense for a small organization, because employees can come and go with no major ripple effects on the organization. However, as the business grows, the coordinating efforts on the part of the owner/manager become increasingly more complex. In the case of our restaurant, let’s assume that the growth of the restaurant requires the owner to spend time doing lots of little things to manage the employees. Now the manager has lost the ability to spend time focusing on the actual business at hand. The manager then decides to add a supervisor to handle all of the day-to-day organizing of the restaurant. This arrangement works well until the owner decides to open a second restaurant that needs to have its own supervisor. Now let’s assume that this second restaurant is much larger, leading the owner to decide to have separate supervi- sors directly in charge of the waitstaff and the kitchen. All of a sudden, our little restaurant has three layers of management!
BUREAUCRATIC STRUCTURES When you think of the word “bureaucracy,” what thoughts come to mind? Stuffy, boring, restrictive, formal, hard to change, and needlessly complex are some of the terms that have a tendency to be associated with bureaucracies. Those unflattering adjectives aside, chances are very good that you either currently work in a bureaucracy or will after you graduate. A bureaucratic structure is an organizational form that exhibits many of the facets
15.4 What are some of the more common organizational forms that an organiza- tion might adopt for its structure?
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of the mechanistic organization. Bureaucracies are designed for efficiency and rely on high levels of work specialization, formalization, centralization of authority, rigid and well-defined chains of command, and relatively narrow spans of control. As mentioned previously, as an organization’s size increases, it’s incredibly difficult not to develop some form of bureaucracy.
There are numerous types of bureaucratic structures on which we might focus. The most basic of these is the functional structure. As shown in Figure 15-4, a functional structure groups employ- ees by the functions they perform for the organization. For example, employees with marketing expertise are grouped together, those with finance duties are grouped together, and so on. The success of the functional structure is based on the efficiency advantages that come with having a high degree of work specialization that’s centrally coordinated.38 Managers have expertise in an area and interact with others with the same type of expertise to create the most efficient solutions for the company. As illustrated in our previous example of the fast-growing restaurant, many small companies naturally evolve into functionally based structures as they grow larger.
However, small companies experiencing rapid growth are not the only organizations to benefit from a functional structure. Macy’s, the New York–based clothes store, has a more traditional functional structure. The 150-year-old retailer used to be organized around geographic regions, but has restructured to be more functionally based with buying, planning, and marketing now all operating out of one location in New York. Macy’s hopes that the efficiencies generated by the change in structure will afford it enough cost savings to get a jump on its competitors like JCPen- ney and Kohl’s. Indeed, Macy’s believes the changes have saved the company $500 million over two years.39
Functional structures are extremely efficient when the organization as a whole has a relatively narrow focus, fewer product lines or services, and a stable environment. The biggest weaknesses of a functional structure tend to revolve around the fact that individuals within each function get so wrapped up in their own goals and viewpoints that they lose sight of the bigger organizational picture. In other words, employees don’t communicate as well across functions as they do within functions. The Sony example also highlights this danger, in that hardware engineers failed to communicate with software developers, which prevented the hardware and software people from seeing all the pieces of the puzzle.40 Even in the example directly above, Macy’s then-CEO Terry Lundgren worried about the company’s ability to cater to local tastes with a functional structure. To deal with this, he assigned specific managers in each region to be aware of and responsible for unique local needs.41
In contrast to functional structures, multi-divisional structures are bureaucratic organizational forms in which employees are grouped into divisions around products, geographic regions, or clients (see Figure 15-4). Each of these divisions operates relatively autonomously from the others and has its own functional groups. Multi-divisional structures generally develop from companies with functional structures whose interests and goals become too diverse for that structure to han- dle. For example, if a company with a functional structure begins to add customers that require localized versions of its product, the company might adopt a geographic structure to handle the
FIGURE 15-3 An Organizational Structure for a Small Restaurant
Owner/ Manager
Employee 2 Waitsta�
Employee 1 Waitsta�
Employee 4 Cook
Employee 5 Cook
Employee 3 Busboy/
Dishwasher
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FIGURE 15-4 Functional and Multi-Divisional Structures
Functional Structure
Geographic Structure
Product Structure
CEO/ President
Vice President Government
Contracts
Vice President Large Company
Contracts
Vice President Direct
Consumer Sales
Vice President Internet Sales
Client-based Structure
Vice President Marketing
Vice President Information Technology
CEO/ President
Vice President Human
Resources
Vice President Finance
Vice President Manufacturing
Vice President Educational
Toys
Vice President Electronic Gaming
CEO/ President
Vice President Infant Toys
Vice President Girl's Toys
Vice President Boy's Toys
CEO/ President
Vice President North America
Vice President Australia
Vice President Middle East
Vice President Europe
Vice President Asia
product variations. Which form a company chooses will likely depend on where the diversity in its business lies.
Product structures group business units around different products that the company produces. Each of those divisions becomes responsible for manufacturing, marketing, and doing research and development for the products in its own division. Boeing, Procter & Gamble, Hewlett-Packard, and Sony are companies that have developed product structures. Product structures make sense
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when firms diversify to the point that the products they sell are so different that managing them becomes overwhelming. Campbell Soup Company recently organized into a product-based struc- ture that it expects to allow it to expand into faster-growing spaces. Campbell will now be orga- nized into “Americas Simple Meals and Beverages,” “Global Biscuits and Snacks,” and “Packaged Fresh” divisions. President and CEO Denise Morrison expects the new structure to generate an extra $200 million over the next three years through the efficiencies the company will gain.42 Toyota Motor Corp. has announced that it will reorganize into seven units focusing on prod- uct classes (such as compact cars, midsize vehicles, commercial vehicles, and the luxury Lexus brand). Spokesman Ryo Sakai says, “By breaking the company down to a smaller framework than before, each one can decide more quickly how to respond to changes.”43
However, there are downsides to a product structure. One of those downsides arises when the divisions don’t communicate and they don’t have the ability to learn from one another. Facebook uses multiple methods to try to overcome the barriers that size and organizational structure cre- ate such as strict onboarding processes, mentoring, and other methods designed to make people interact and not build up walls even though they are organized into different groups. One senior manager went as far as to say, “We want to be the anti-Sony, the anti-Microsoft—we look at compa- nies like that and see what we don’t want to become.”44 Not all companies want their divisions to share though—they want them to compete. Even though it has changed since then, when he first started as Fiat-Chrysler CEO, Sergio Marchionne reorganized so that Dodge, Jeep, and Chrysler were essentially operating as separate companies, each with its own CEO. These companies were being forced to compete with each other for marketing and development resources. Marchionne believed that the competition would help to turn all three car brands around.45 See this chapter’s OB at the Bookstore to read about some of the dangers of adopting a multi-divisional structure.
Geographic structures are generally based around the different locations where the company does business. The functions required to serve a business are placed under a manager who is in charge of a specific location. Reasons for developing a geographic structure revolve around the different tastes of customers in different regions, the size of the locations that need to be covered by different salespeople, or the fact that the manufacturing and distribution of a product are bet- ter served by a geographic breakdown. When the Regus Group (a UK company) and HQ Global Workplaces (a U.S. company) merged, they came together to form the world’s largest supplier of meeting spaces and office suites. The new Regus Group now has more than 3,000 office suite facilities in 900 cities across 120 countries. When they merged, HQ and Regus had different struc- tures. Considering the necessarily geographic-based business (i.e., the distances between facilities and the range of customers), the new Regus Group is structured by geographic region.46 Many global companies are also organized by geographic location. IBM was one of the first, but that has changed for them, as described in our OB Internationally feature.
One last form of multi-divisional structure is the client structure. When organizations have a num- ber of very large customers or groups of customers that all act in a similar way, they might organize
their businesses around serving those customers. For example, small banks traditionally orga- nize themselves into divisions such as personal banking, small business banking, personal lending, and commercial lend- ing. Similarly, consulting firms often organize themselves into divisions that are responsible for small business clients, large business clients, and federal clients. Goldman Sachs is no different, organizing around investment banking, securities, merchant banking, realty man- agement, and other services.47
Facebook uses multiple methods to try to over-
come the barriers that an organizational structure
can create between employees.
©Bloomberg/Getty Images
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OB AT THE BOOKSTORE THE SILO EFFECT by Gillian Tett (New York: Simon & Schuster, 2015)
Indeed, almost everywhere I looked in the financial crisis it seemed that tunnel vision and tribal- ism had contributed to the disaster. People were trapped inside their little specialist departments, social groups, teams, or pockets of knowledge. Or, it might be said, inside their silos.
With those words, Gillian Tett describes part of the reason for the 2008 U.S. financial crisis and the impetus for the book. Tett comes from a unique vantage point. She is the U.S. managing editor for the Financial Times and has been writing about finance and economics for over 20 years. In addition, though, Tett has a Ph.D. in social (cultural) anthropology. She effectively uses these two viewpoints to write a book on how organizational structure (and culture) can impact how we see and view the world around us in a business environment. The book sets out to answer two broad questions: (1) Why do silos arise? and (2) Is there any- thing we can do to master our silos, before the silos master us? Tett uses examples from a wide variety of organizations such as New York’s City Hall, the Bank of England, Facebook, Sony, the Chicago Police Department, and the Cleveland Clinic hospital to describe how groupings can frame our thoughts. Some of these are examples of how organizations have used structures (or restructuring) to solve problems and become more effective (the Cleveland Clinic and Facebook) and others are examples of what happens when organizational structures wreak havoc by limiting communication and increasing politics and conflict (Sony, UBS).
Tett notes that the Oxford English Dictionary describes a silo as a “system, process, depart- ment, etc., that operates in isolation from others.” These silos can be created when we orga- nize work processes or employees in a certain way, many of which we describe in this chapter. However, Tett takes it a step further to prove that they also exist in our minds. Regardless of where the silo originates from, silos have the ability to create tunnel vision for individuals and limit how they think about and view the world around them. Sometimes silos can be benefi- cial (efficiency), but they can also be dangerous if they keep groups from communicating or stif le innovation.
©Roberts Publishing Services
Matrix structures are more complex designs that try to take advantage of two types of structures at the same time. Companies such as Xerox, General Electric, and Dow Corning were among the first to adopt this type of structure.48 Figure 15-5 provides an example of a matrix structure. In this example, employees are distributed into teams or projects within the organization on the basis of both their functional expertise and the product that they happen to be working on. Thus, the matrix represents a combination of a functional structure and a product structure. There are two important points to understand about the matrix structure. First, the matrix allows an organiza- tion to put together very flexible teams based on the experiences and skills of their employees.49 This flexibility enables the organization to adjust much more quickly to the environment than a traditional bureaucratic structure would.
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Traditionally, IBM has structured its 386,000-employee organization along geographic lines. Some might argue that IBM was the company that pioneered the first multinational geographic struc- ture by setting up mini-IBMs in countries around the globe. Each country in which IBM operated had its own workforce and management team that reacted to the clients for whom it provided ser- vices in that country. The structure made perfect sense in a world in which consultants needed to be on location with their clients when those customers were having software or computer issues. However, IBM’s environmental factors are changing rapidly. Competitors, especially those com- ing out of India, are providing many of the same services for significantly less money.
To change along with its competitors and respond to the “flattening world,” IBM is reorganiz- ing its workforce by creating and utilizing what it calls “competency centers.” These centers will group employees from around the world on the basis of the specific skill sets that they have to offer clients. Some workers will be grouped into one location that can service clients all over the world through the use of technology. For instance, a few years ago IBM announced that it would invest $300 million over 10 years in its Costa Rica service center, which serves as a strategic services hub for the company and intends to employ up to 1,000 people. The facility supports clients mainly as a cloud computing center of competency. In Boulder, Colorado, IBM employs 6,200 profession- als as part of a “call center” that monitors clients’ computing functions worldwide. If something goes wrong in one of IBM’s 426 data centers, employees in Boulder will more than likely be the ones to handle it or send it to someone who can. Other IBM workers are grouped by broader geo- graphic locations so that they can still be in relatively close proximity to their customers. When these employees are needed by a client, IBM has a computer database that allows it to put together teams of highly specialized consultants by examining the skill sets listed on 70,000 IBM résumés. A recent move by IBM was to consolidate all of its U.S. marketing department (2,600 employees) into six cities—more than 40 percent had been telecommuting.
Does this change in structure sound familiar to you? It should—though IBM is maintaining some of its geographic structure, its organizational structure is becoming more functional. As the world becomes flatter through technology, clients expect the best talent from around the world, not just the best talent that happens to be sitting in their city. These structural changes allow IBM to give clients just that. For IBM, these are the necessary changes that come with being a global company. In fact, IBM has been called “the world’s most complex organization.” It’s not just about structure though, according to one-time IBM Senior Vice President Robert W. Moffat Jr.: “Globalization is more than that. Our customers need us to put the right skills in the right place at the right time.”
OB INTERNATIONALLY
Sources: J. Kessler, “IBM, Remote-Work Pioneer, Is Calling Thousands of Employees Back to the Office,” Quartz.com, March 21, 2017: https://qz.com/924167/ibm-remote-work-pioneer-is-calling-thousands-of-employees-back-to-the-office/; “IBM Drives Flash Technology Deeper into the Enterprise to Speed Big Data Analytics,” IBM press release, April 11, 2013, http://www-03.ibm.com/press/us/en/pressrelease/40832.wss; “New IBM Delivery Center Opens in Costa Rica,” PR News- wire, May 2012; J. Galbraith, “The Multi-Dimensional and Reconfigurable Organization,” Organizational Dynamics 39 (2010), pp. 115–25; and S. Hamm, “Big Blue Shift,” BusinessWeek, June 5, 2006, pp. 108–10.
Second, the matrix gives each employee two chains of command, two groups with which to interact, and two sources of information to consider. This doubling of traditional structural ele- ments can create high stress levels for employees if the demands of their functional grouping are at odds with the demands of their product- or client-based grouping.50 The situation can become particularly stressful if one of the two groupings has more power than the other. For example, it may be that the functional manager assigns employees to teams, conducts performance evalua- tions, and decides raises—making that manager more powerful than the product- or client-based
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manager.51 Although matrix structures have been around since the 1960s, the number of organiza- tions using them is growing as teams become a more common form of organizing work. They have also become more common in global companies, with the functional grouping balanced by a geo- graphic grouping. In fact, numerous companies now have matrix structures with enough layers to be considered four- or five-dimensional.52 Fiat-Chrysler’s matrix structure is incredibly complicated with CEO Sergio Marchionne sitting right in the middle with 38 direct reports! (You can compare that with GM CEO Mary Barra’s 12 and Ford CEO Mark Fields’s 17.)53 Bristol-Myers Squibb, the New York–based biopharmaceutical company, is heavily matrixed throughout the company. As Jane Luciano, former vice president of global learning and organizational development, explained, “We have the matrix every way it can be organized, including geographically, functionally, and on a product basis. Based on our size and in a highly regulated industry, the matrix helps us to gain control of issues as they travel around the globe and to leverage economies of scale.”54
S U M M A RY: W H Y D O S O M E O R GA N I Z AT I O N S H AV E D I F F E R E N T ST R U C T U R E S T H A N OT H E R S ? So why do some organizations have different structures? As shown in Figure 15-6, differences in the business environment, company strategy, technology, and firm size cause some organizations to be designed differently than others. These differences create variations in the five elements of organizational structure: work specialization, chain of command, span of control, centralization, and formalization. These elements then combine to form one of a number of common organiza- tional forms, including (1) a simple structure; (2) a bureaucratic structure, which may come in
FIGURE 15-5 Matrix Structure
President/ CEO
Project Team Marketing/Sales
Product A
Project Team Mfg/Operations
Product C
Project Team R&D
Product C
Project Team Finance
Product C
Project Team Marketing/Sales
Product C
Vice President Product C
Project Team Mfg/Operations
Product A
Project Team R&D
Product A
Project Team Finance
Product A
Vice President Product A
Vice President Product B
Project Team Mfg/Operations
Product B
Project Team R&D
Product B
Project Team Finance
Product B
Project Team Marketing/Sales
Product B
Vice President Mfg/Operations
Vice President R&D
Vice President Finance
Vice President Marketing/Sales
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FIGURE 15-6 Why Do Some Organizations Have Different Structures Than Others?
Business Environment
Company Strategy
Technology
Size
Mechanistic vs. Organic
EFFICIENT FLEXIBLE
ORGANIZATIONAL STRUCTURE
Common Organizational Forms
• Simple Structure • Bureaucratic Structures - Functional - Multi-divisional - Product - Geographic - Client -Matrix Structure
Elements of Structure
• Work Specialization • Chain of Command • Span of Control • Centralization • Formalization
functional, product, geographic, or client forms; or (3) a matrix structure. Some of these forms are more mechanistic, whereas others are more organic. Taken together, these structures explain how work is organized within a given company.
H O W I M P O R TA N T I S S T R U C T U R E ?
To some degree, an organization’s structure provides the foundation for almost everything in orga- nizational behavior. Think about some of the things that organizational structure affects: com- munication patterns between employees, the tasks an employee performs, the types of groups an organization uses, the freedom employees have to innovate and try new things, how power and influ- ence are divided up in the company . . . we could go on and on. Picture the walls of a house. The occu- pants within those walls can decorate or personalize the structure as best they can. They can make it
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more attractive according to their individual preferences by adding and taking away furniture, but at the end of the day, they’re still stuck with that structure. They have to work within the confines that the builder envisioned (unless they’re willing to tear down walls or build new ones at considerable time, effort, and expense!). Organizational structures operate in much the same way for employees and their managers. A given manager can do many things to try to motivate, inspire, and set up an effective work environment so that employees have high levels of performance and commitment. At the end of the day, however, that manager must work within the structure created by the organization.
Given how many organizational forms there are, it’s almost impossible to give an accurate rep- resentation of the impact of organizational structure on job performance. In fact, we might even say that an organization’s structure determines what job performance is supposed to look like! In addition, the elements of structure are not necessarily good or bad for performance. For example, a narrow span of control is not necessarily better than a broad one; rather, the organization must find the optimal solution based on its environment and culture. One thing we can say, as illustrated in Figure 15-7, is that changes to an organization’s structure can have negative effects on the employees who work for the company, at least in the short term. The process of changing an organization’s structure is called restructuring. Research suggests that restructuring has a small negative effect on task performance, likely because changes in specialization, centralization, or formalization may lead to confusion about how exactly employees are supposed to do their jobs, which hinders learning and decision making. Restructuring has a more significant negative effect on organizational com- mitment, however. Restructuring efforts can increase stress and jeopardize employees’ trust in the organization.55 There is some evidence that the end result is a lower level of affective commitment on the part of employees, because they feel less emotionally attached to the firm.
15.5 When an organization makes changes to its structure, how does that restructuring affect job performance and organiza- tional commitment?
FIGURE 15-7 Effects of Organizational Structure on Performance and Commitment
Source: K.P. DeMeuse, M.L. Marks, and G. Dai, “Organizational Downsizing, Mergers and Acquisitions, and Strategic Alliances: Using Theory and Research to Enhance Practice,” in APA Handbook of Industrial and Organizational Psychology, Vol. 3, ed. S. Zedeck (Washington: APA, 2011), pp. 729–68; C. Gopinath and T.E. Becker, “Communication, Procedural Justice, and Employee Attitudes: Relationships under Conditions of Divestiture,” Journal of Management 26 (2000), pp. 63–83; D. van Dierendonck and G. Jacobs, “Survivors and Victims, a meta-analytical reveiw of fairness and organizational commitment after downsizing,” in British Journal of Management 23 (2012), pp. 96-109; and J. Brockner, G. Spreitzer, A. Mishra, W. Hockwarter, L. Pepper, and J. Weinberg, “Perceived Control as an Antidote to the Negative Effects of Layoffs on Survivors’ Organizational Commitment and Job Performance,” Administrative Science Quarterly 49 (2004), pp. 76–100.
Restructuring has a weak negative e�ect on Performance. Task Performance tends to be somewhat lower in organizations that restructure. Not much is known about the impact of restructuring on Citizenship Behavior or Counterproductive Behavior.
Restructuring has a moderate negative e�ect on Commitment. A�ective Commitment tends to be lower in organizations that restructure. Not much is known about the impact of restructuring on Continuance Commitment or Normative Commitment.
Represents a strong correlation (around .50 in magnitude).
Represents a moderate correlation (around .30 in magnitude).
Represents a weak correlation (around .10 in magnitude).
Job Performance
Organizational Commitment
Restructuring
Restructuring n e g a t i v e
n e g a t i v e
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A P P L I C AT I O N : R E S T R U C T U R I N G
As you’ve read through our discussion of organizational structure, you may have noticed how important it is for organizations to adapt to their environment. The first step in adapting is recog- nizing the need to change. The second (and sometimes much more problematic) step is actually adapting through restructuring. Organizations attempt to restructure all the time—in fact, it’s dif- ficult to pick up a copy of Bloomberg Businessweek or Fortune without reading about some orga- nization’s restructuring initiatives. General Motors has undertaken a massive restructuring effort no less than eight times over the past 25 years!56 (And look where that got them . . . !) Most of the examples we put into this chapter pertain to organizations that were restructuring.
Restructuring efforts come in a variety of shapes and sizes. Organizations may change from a product-based structure to a functional structure, from a functional structure to a geographic- based structure, and on and on. However, the most common kind of restructuring in recent years has been a “flattening” of the organization. Why do so many organizations do this? Primarily to show investors that they are reducing costs to become more profitable. Think back to our discus- sion of tall and flat organizational hierarchies, in which we noted that taller organizations have more layers of management. Many restructuring efforts are designed to remove one or more of those layers to reduce costs. Of course, removing such layers doesn’t just mean deleting boxes on an organizational chart; there are actual people within those boxes! Thus, efforts to flatten gener- ally require organizations to lay off several of the managers within the company.
When employees get a sense that their company might be getting ready to restructure, it causes a great deal of stress because they become worried that they will be one of those to lose their jobs. No company’s employees have had to go through more over the last decade than those at Hewlett-Packard (HP). When, in the mid-2000s, ex-CEO Carly Fiorina decided to restructure Hewlett-Packard, it caused widespread fear and panic among employees. For the 60 days prior to the actual restructuring announcement, work came to a standstill at the company—tales of high stress, low motivation, political battles, and power struggles abounded.57 It’s estimated that Hewlett-Packard as a company lost an entire quarter’s worth of productivity.58 Since Fiorina’s actions, two subsequent CEOs have restructured the company when they took over. Mark Hurd essentially undid everything Fiorina had done by unmerging units that Fiorina had merged. CEO Meg Whitman then came in to reorganize it all again by re-merging HP’s PC and printer units (of course, accompanied by an announcement of further layoffs).59 When that didn’t solve the financial problems, HP announced that it was going to split the organization into two com- pletely separate companies, both of which will be Fortune 50 companies when all is said and done.60 Whitman stated, “Today I’m more convinced than ever that this is the right thing to do.”61
One of the ways in which managers can do their best to help a restructuring effort succeed is to help manage the layoff survivors (i.e., employees who remain with the company following a lay- off). Many layoff survivors are known to experience a great deal of guilt and remorse following an organization’s decision to remove some employees from the company.62 Researchers and practi- tioners recently have been trying to understand layoff survivors better, as well as how to help them adjust more quickly. One of the major problems for layoff survivors is the increased job demands placed on them. After all, that coworker or boss the employee had was doing something. Layoff survivors are generally burdened with having to pick up the leftover tasks that used to be done by somebody else.63 This burden creates a sense of uncertainty and stress.64 Research suggests that one of the best ways to help layoff survivors adjust is to do things that give them a stronger sense of control.65 Allowing survivors to have a voice in how to move forward or help set the plans about how to accomplish future goals are two ways managers can help employees feel more in control. In addition, honest and frequent communication with layoff survivors greatly helps reduce their feelings of uncertainty and stress.66 This communication is especially necessary when the orga- nization is hiring at the same time it’s firing. For instance, when Boeing announced a plan to cut 9,000 jobs, it had more than 1,500 current and anticipated job openings.67 Many other employers, such as Microsoft, AT&T, and Time Warner, have experienced something similar.68 This conflict sends mixed messages to those being laid off, as well as to the survivors. One sobering fact is that
15.6 What steps can organiza- tions take to reduce the negative effects of restruc- turing efforts?
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the survivors never know whether the restructuring will lead to success, or if it’s simply a process of grasping at straws to avoid the ultimate demise of the company. For a restructuring to be truly successful, it requires more than simply changing lines on an organizational chart; it demands a different way of working for employees.69
15.1 An organization’s structure formally dictates how jobs and tasks are divided and coordi- nated between individuals and groups within the organization. This structure, partially illustrated through the use of organizational charts, provides the foundation for organizing jobs, controlling employee behavior, shaping communication channels, and providing a lens through which employees view their work environment.
15.2 There are five major elements to an organization’s structure: work specialization, chain of command, span of control, centralization of decision making, and formalization. These elements can be organized in such a way as to make an organization more mechanistic in nature, which allows it to be highly efficient in stable environments, or more organic in nature, which allows it to be flexible and adaptive in changing environments.
15.3 Organizational design is the process of creating, selecting, or changing the structure of an organization. Factors to be considered in organizational design include a company’s busi- ness environment, its strategy, its technology, and its size.
15.4 There are literally thousands of organizational forms. The most common is the simple structure, which is used by most small companies. Larger companies adopt a more bureaucratic structure. This structure may be functional in nature, such that employees are grouped by job tasks, or multi-divisional, such that employees are grouped by product, geography, or client. Organizations may also adopt a matrix structure that combines func- tional and multi-divisional grouping.
15.5 Organizational restructuring efforts have a weak negative effect on job performance. They have a more significant negative effect on organizational commitment, because employees tend to feel less emotional attachment to organizations that are restructuring.
15.6 To reduce the negative effects of restructuring, organizations should focus on managing the stress levels of the employees who remain after the restructuring. Providing employees with a sense of control can help them learn to navigate their new work environment.
TA K E AWAY S
K E Y T E R M S
• Organizational structure p. 482 • Organizational chart p. 482 • Work specialization p. 483 • Chain of command p. 484 • Span of control p. 484 • Centralization p. 486 • Formalization p. 487 • Mechanistic organizations p. 488 • Organic organizations p. 489 • Organizational design p. 489 • Business environment p. 490 • Company strategy p. 490
• Technology p. 490 • Company size p. 490 • Simple structure p. 491 • Bureaucratic structure p. 491 • Functional structure p. 492 • Multi-divisional structure p. 492 • Product structure p. 493 • Geographic structure p. 494 • Client structure p. 494 • Matrix structure p. 495 • Restructuring p. 499
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15.1 Is it possible to be a great leader of employees in a highly mechanistic organization? What special talents or abilities might be required?
15.2 Why do the elements of structure, such as work specialization, formalization, span of con- trol, chain of command, and centralization, have a tendency to change together? Which of the five do you feel is the most important?
15.3 Which is more important for an organization: the ability to be efficient or the ability to adapt to its environment? What does this say about how an organization’s structure should be set up?
15.4 Which of the organizational forms described in this chapter do you think leads to the high- est levels of motivation among workers? Why?
15.5 If you worked in a matrix organization, what would be some of the career development challenges that you might face? Does the idea of working in a matrix structure appeal to you? Why or why not?
D I S C U S S I O N Q U E S T I O N S
After five years under Apple CEO Tim Cook’s leadership, Apple’s revenue has tripled, it has doubled the number employees working for the company to over 115,000, and its cash reserves have grown to a record $246 billion. Cook says, “Our reason for being is the same as it’s always been. To make the world’s best products that really enrich people’s lives.” Apple’s functional structure has helped that product development to be wildly successful through collaboration, beating out a number of competitors like Sony whose multi-divisional structures keep them from sharing information, expertise, and technology in the most effective way. However, it causes problems for them as well. Apple desktop users are frustrated with a lack of updates (over three years running) and iPhone/iPad users get frustrated that Apple waits to provide major updates to its software systems until it has a new product on the market. Apple shareholders are upset that Apple isn’t making more money off of their services (iTunes and other apps). These kinds of issues arise partly because nobody is “in charge” of those products or services.
One of the reasons companies eschew functional (expertise) structures is that it makes it more difficult to hold managers accountable for things when they go wrong. In a multi- divisional structure, if a product fails or a region or unit doesn’t make a certain amount of profit—there is someone to point to. When an issue arises with Windows or Office or Microsoft Cloud, Microsoft knows where to go and whom to hold responsible because someone is in charge of those products. Apple’s philosophy is different. Apple CEO Tim Cook said, “They’re not things where we run separate [profits and losses] on, because we don’t do that—we don’t believe in that. We manage the company at the top and just have one [profit and loss] and don’t worry about the iCloud team making money and the Siri team making money. We want to have a great customer experience, and we think measuring all these things at that level would never achieve such a thing.”
As Apple becomes even larger though, their structure is going to be harder to maintain. The fact is that they could be making updates much more frequently to a wide range of products, upgrading software, and providing services that could allow them to be much more profitable if they were to adopt a different structure. They have also been blessed with great leadership given their very centralized approach to decision making. The question is where do they go from here?
C A S E : A P P L E
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15.1 Why do you think Apple’s functional structure has been so important for their products?
15.2 What are the outside forces that might make Apple change their organizational structure in the future?
15.3 How might Apple change their structure in a way that allows them to have the best of both worlds?
Sources: A. Lashinsky. “Inside Apple,” Fortune, May 23, 2011, pp. 125–34; R. Tetzeli. “Playing the Long Game Inside Tim Cook’s Apple,” Fast Company, August 8, 2016: https://www.fastcompany.com/3062090/playing-the-long-game-inside- tim-cooks-apple; B. Thompson. “Apple’s Organizational Crossroads,” Stratechery.com, April 19, 2016: https://stratechery .com/2016/apples-organizational-crossroads/; C. Wang. “Apple’s Cash Hoard Swells to Record $246.09 Billion,” cnbc .com, January 31, 2017: http://www.cnbc.com/2017/01/31/apples-cash-hoard-swells-to-record-24609-billion.html; and M. Yglesias. “Apple May Have Finally Gotten Too Big for its Unusual Corporate Structure,” vox.com, April 4, 2017: http:// www.vox.com/new-money/2016/11/27/13706776/apple-functional-divisional.
E X E R C I S E : C R E AT I V E C A R D S , I N C .
The purpose of this exercise is to demonstrate the effects of structure on organizational effi- ciency. This exercise uses groups, so your instructor will either assign you to a group or ask you to create your own group. The exercise has the following steps:
15.1 Creative Cards, Inc., is a small but growing company, started 10 years ago by Angela Naom, a graphic designer. The company has added many employees over the years but without a master plan. Now Angela wants to reorganize the company. The current structure of Creative Cards, Inc., is shown in the figure below. Review the organizational chart, and identify at least 10 prob- lems with the design of Creative Cards, Inc. Be sure to consider work specialization, chain of command, span of control, centralization, and formalization in developing your answer.
West Coast Operations V.P.
H.R. V.P.
East Coast Sales Mgr.
Legal 4 emp.
Quality Control Mgr.
Buyer I Inks
Press Operator
Sanitation Engineer
Distribution Manager. Northern Region
Sales Reps. 8 emps.
Janitors 4 emp.
Sales V.P. Creative Dir. Exec. V.P.
Art Design Mgr. Verse Writer Printing Sup.
Payroll Mgr. Finance Dir. Admin. Asst.
President
Sympathy Card Sup.
Birthday Card Sup.
E-Card Sup.
Card Cutting Sup.
4 emps. 60 emps. 25 emps. 10 emps. 14 emps.
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15.1 Source: Slater, D. “Match Inc. CEO Sam Yagan on Even All Stars Needing Struc- ture.” Fast Company, November 26, 2012.
15.2 Kranz, G. “Aetna’s Odyssey Comes Full Circle.” Workforce Management Online, March 2009, http:// www.workforce .com/archive/ feature/26/26/53/ index.php?ht5.
15.3 Hackman, J.R., and G. R. Oldham. Work Redesign. Reading, MA: Addison-Wesley, 1980.
15.4 Silverman, R.E. “Who’s the Boss? There Isn’t One.” The Wall Street Journal, June 20, 2012, p. B1.
15.5 Simon, H. Administra- tive Behavior. New York: Macmillan, 1947.
15.6 Source: Jargon, J. “Chipotle Opts for One CEO as Company Hones Focus,” Wall Street Journal, Dec. 13, 2016, p. B1; McGrath, M. “Whole Foods Eliminates Co-CEO Setup, Names John Mackey as Sole Chief Executive,” Forbes. com, Nov. 2, 2016.
15.7 Meier, K.J., and J. Bohte. “Ode to Luther Gulick: Span of Con- trol and Organizational Performance.” Admin- istration and Society 32 (2000), pp. 115–37.
15.8 Theobald, N.A., and S. Nicholson-Crotty. “The Many Faces of Span of Control: Organizational Struc- ture across Multiple Goals.” Administration and Society 36 (2005), pp. 648–60.
15.9 Neilson, G.L. and J. Wulf. “How Many Direct Reports.” Harvard Business Review, April 2014, pp. 112–19; and Child, J., and M. McGrath. “Organizations Unfettered: Organi- zational Forms in an Information-Intensive Economy.” Academy of Management Jour- nal 44 (2001), pp. 1135–48.
15.10 Hymowitz, C. “Today’s Bosses Find Mentor- ing Isn’t Worth the Time and Risks.” The Wall Street Journal, March 13, 2006, p. B1.
15.11 Source: Nuttal, C. “Intel Cuts 1,000 Management Jobs.”
Financial Times, July 14, 2006, p. 23.
15.12 Source: “Mcdonald’s Announces Initial Steps in Turnaround Plan.” PRNewswire, May 4, 2015.
15.13 Source: Michaels, D. “Airbus on Track to Double Profit Margin by 2015.” The Wall Street Journal, June 17, 2013, p. b1.
15.14 Source: Gary L. Neilson and Julie Wulf, “How Many Direct Reports” Harvard Business Review (April 2012).
15.15 Source: Otterbourg, K. “Sheetz Puts the Gas in Gastronomy.” Fortune, May 20, 2013, pp. 142–48.
15.16 Groszkiewicz, D., and B. Warren. “Alcoa’s Michigan Casting Cen- ter Runs the Business from the Bottom Up.” Journal of Organiza- tional Excellence, Spring 2006, pp. 13–23.
15.17 Silverman, “Who’s the Boss?”; Silverman, R.E. “At Zappos, Banishing the Bosses Brings Confusion.” The Wall Street Journal, May 21, 2015, p. A1.
E N D N OT E S
15.2 Create a new organizational design that you think would help the company operate more efficiently and effectively.
15.3 Class discussion, whether in groups or as a class, should center on how Creative Cards could best manage such a significant restructuring.
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15.18 Kiger, P. “Power of the Individual.” Workforce Management, February 27, 2006, pp. 1, 22–27.
15.19 Hempel, P.S.; Z. Zhang; and Y. Han. “Team Empowerment and the Organi- zational Context: Decentralization and Contrasting Effects of Formalization.” Jour- nal of Management 38 (2012), pp. 475–501.
15.20 Toh, S.M.; F.P. Morgeson; and M.A. Campion. “Human Resource Configura- tions: Investigating Fit within the Orga- nizational Context.” Journal of Applied Psychology 93 (2008), pp. 864–82.
15.21 Walter, F., and H. Bruch. “Structural Impacts on the Occurrence and Effec- tiveness of Transfor- mational Leadership: An Empirical Study at the Organizational Level of Analysis.” The Leadership Quarterly 21 (2010), pp. 765–82.
15.22 O’Brien, J. “Microsoft Reboots.” Fortune, October 26, 2009, pp. 98–108.
15.23 Keats, B., and H. O’Neill. “Organiza- tional Structure: Look- ing through a Strategy Lens.” In Handbook of Strategic Management, ed. M.A. Hitt, R.E. Freeman, and J.S. Harrison. Oxford, UK: Blackwell, 2003, pp. 520–42.
15.24 Collins, J. How the Mighty Fall. New York: HarperCollins, 2009.
15.25 Scott, W.R., and G.F. Davis. Organizations and Organizing: Ratio- nal, Natural, and Open System Perspectives. Englewood Cliffs, NJ: Pearson Prentice Hall, 2007.
15.26 Kane, Y.I., and P. Dvorak. “Howard Stringer, Japanese CEO.” The Wall Street Journal, March 3, 2007, pp. A1, A6; and Singer, M. “Stringer’s Way.” The New Yorker, June 5, 2006, pp. 46–57.
15.27 Gaudiosi, J. “Why Sony Didn’t Learn from Its 2011 Hack.” Fortune, December 24, 2014. http://fortune. com/2014/12/24/ why-sony-didnt-learn- from-its-2011-hack/.
15.28 Porter, M. Competitive Strategy. New York: The Free Press, 1980.
15.29 Woodward, J. Indus- trial Organization: Theory and Practice. London: Oxford Uni- versity Press, 1965.
15.30 Miller, C.C.; W.H. Glick; Y. Wang; and G.P. Huber. “Understanding Technology–Structure Relationships: Theory Development and Meta-Analytic Theory Testing.” Academy of Management Journal 34 (1991), pp. 370–99.
15.31 Gooding, J.Z., and J.A. Wagner III. “A Meta-Analytic Review of the Relation- ship between Size and Performance: The Productivity and Efficiency of Organizations and Their Subunits.” Administrative Science Quarterly 30 (1985), pp. 462–81. See also Bluedorn, A.C. “Pilgrim’s Progress: Trends and Conver- gence in Research on Organizational Size and Environments.” Journal of Manage- ment 21 (1993), pp. 163–92.
15.32 Lawler, E.E., III. “Rethinking Organi- zational Size.” Organi- zational Dynamics 26 (1997), pp. 24–35.
15.33 Kiger, “Power of the Individual.”
15.34 Dunbar, R. “Neocor- tex Size as a Con- straint on Group Size in Primates.” Journal of Human Evolution 22 (1992), pp. 469–93. See also, Gladwell, M. The Tipping Point— How Little Things Make a Big Difference. New York: Little, Brown and Company, 2000, pp. 177–81, 185–86.
15.35 Source: Delaney, K.J. “Something weird happens to companies when they hit 150 people.” Quartz.com, Nov. 29, 2016.
15.36 Silverman, R.E. “Corporate Field
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Trip: Learning from Startups.” The Wall Street Journal, March 27, 2013, p. B8.
15.37 Scott and Davis, Organizations and Organizing.
15.38 Miles, R.E., and C.C. Snow. Organizational Strategy, Structure, and Process. New York: McGraw-Hill, 1978.
15.39 Boyle, M. “Managing Forward.” Business- Week, September 14, 2009, p. 13.
15.40 Singer, “Stringer’s Way.”
15.41 Boyle, M. “Managing Forward.”
15.42 Fry, M. “Campbell Soup Shakes Up Its Structure, Leader- ship.” NJBIZ, January 29, 2015. http:// www.njbiz.com/ article/20150129/ NJBIZ01/150129706/ campbell-soup- shakes-up-its-structure- leadership.
15.43 Source: Kubota, Y. “Toyota Confirms Shake-Up in Efficiency Drive.” Wall Street Journal, March 2, 2016.
15.44 Source: Tett, G. The Silo Effect. New York: Simon & Schuster, 2015.
15.45 Welch, D.; D. Kiley; and C. Matlack. “Tough Love at Chrys- ler.” BusinessWeek, August 24 and 31, 2009, pp. 26–28.
15.46 “Changing the Way The World Works— Regus PLC Annual Report and Accounts
2014.” Regus.com, March 3, 2015, http:// www.regus.com/ images/Regus_plc_ consolidated_report_ and_accounts_2014_ tcm304-57842.pdf; and Hosford, C. “Behind the Regus– HQ Merger: A Clash of Cultures That Wasn’t.” Sales and Marketing Manage- ment, March 2006, pp. 47–48.
15.47 Goldman Sachs com- pany website accessed April 2017: http:// www.goldmansachs .com/careers/why- goldman-sachs/our- divisions/index.html
15.48 Burns, L.R., and D.R. Wholey. “Adoption and Abandonment of Matrix Management Programs: Effects of Organizational Characteristics and Interorganizational Programs.” Academy of Management Journal 36 (1993), pp. 106–38.
15.49 Hackman, J.R. “The Design of Work Teams.” In Handbook of Organizational Behavior, ed. J.W. Lorsch. Englewood Cliffs, NJ: Prentice Hall, 1987, pp. 315–42.
15.50 Larson, E.W., and D.H. Gobeli. “Matrix Management: Contra- dictions and Insight.” California Manage- ment Review 29 (1987), pp. 126–38.
15.51 Rees, D.W., and C. Porter. “Matrix
Structures and the Training Implica- tions.” Industrial and Commercial Training 36 (2004), pp. 189–93.
15.52 Greenwood, R.; T. Morris; S. Fairclough; and M. Boussebaa. “The Organizational Design of Transna- tional Professional Service Firms.” Orga- nizational Dynamics 39 (2010), pp. 173–83.
15.53 Wayland, M. “Mar- chionne at Center of Complex, Suc- cessful FCA.” The Detroit News, July 1, 2015: http://www .detroitnews.com/ story/business/autos/ chrysler/2015/07/01/ marchionne-fca/ 29597865/
15.54 Source: Derven, M. “Managing the Matrix in the New Normal.” T + D, July 2010, pp. 42–47.
15.55 Gandolfi, F., and M. Hansson. “Causes and Consequences of Downsizing: Toward and Integrative Framework.” Journal of Management and Organization 17 (2011), pp. 498–521.
15.56 Bigman, D. “How General Motors Was Really Saved.” Forbes, November 18, 2013; Taylor, A., III. “GM and Me.” Fortune, December 8, 2008, pp. 92–100; and Taylor, A., III. “GM Gets Its Act Together. Finally.” Fortune, April 5, 2004, pp. 136–46.
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15.57 Gopinath, C. “Busi- nesses in a Merger Need to Make Sense Together.” Businessline, June 26, 2006, p. 1.
15.58 Hamm, J. “The Five Messages Leaders Must Manage.” Har- vard Business Review, May 2006, pp. 114–23.
15.59 Lashinsky, A. “The Hurd Way: How a Sales-Obsessed CEO Rebooted HP.” Fortune, April 17, 2006, pp. 27–34; and Worthen, B. “H-P’s Not-So-New Plan to Unite PC, Printer Units.” The Wall Street Journal, March 20, 2012, p. B1.
15.60 McMillan, R. “As H-P Split Nears, Bosses Tick Off a Surgery Checklist.” The Wall Street Journal, June 30, 2015. http://www .wsj.com/article_ email/as-h-p-split- nears-bosses-tick-off- a-surgery-checklist- 1435620372-lMy QjAxMTE1MDM 2MDQzMzA0Wj.
15.61 Source: Vanian, J. “Hewlett-Packard Shares More Detail on Its Plans to Split the Company.” Fortune, May 21, 2015.
15.62 Noer, D.M. Healing the Wounds. San Francisco: Jossey-Bass, 1993; and Mishra, K.; G.M. Spreitzer; and A. Mishra. “Preserving Employee Morale Dur- ing Downsizing.” Sloan
Management Review 39 (1998), pp. 83–95.
15.63 Conlin, M. “The Big Squeeze on Workers: Is There a Risk to Wringing More from a Smaller Staff?” BusinessWeek, May 13, 2002, p. 96.
15.64 Amabile, T.M., and R. Conti. “Changes in the Work Environ- ment for Creativity during Downsizing.” Academy of Manage- ment Journal 42 (1999), pp. 630–40; DeMeuse, K.P.; M.L. Marks; and G. Dai. “Organizational Downsizing, Mergers and Acquisitions, and Strategic Alliances: Using Theory and Research to Enhance Practice.” In APA Handbook of Industrial and Organizational Psychology, Vol. 3, ed. S. Zedeck, 2011, Washington, DC: APA, pp. 729–68; and Probst, T.M. “Exploring Employee Outcomes of Organizational Restructuring— A Solomon Four- Group Study.” Group and Organization Man- agement 28 (2003), pp. 416–39.
15.65 Brockner, J.; G. Spreitzer; A. Mishra; W. Hockwarter; L. Pepper; and J. Wein- berg. “Perceived Con- trol as an Antidote to the Negative Effects of Layoffs on Survi- vors’ Organizational Commitment and Job
Performance.” Admin- istrative Science Quar- terly 49 (2004), pp. 76–100; and Probst, T.M. “Countering the Negative Effects of Job Insecurity through Participative Decision Making.” Journal of Occupational Health Psychology 10 (2005), pp. 320–29.
15.66 Brockner, J. “The Effects of Work Layoffs on Survivors: Research, Theory and Practice.” In Research in Organizational Behavior, Vol. 10, ed. B.M. Staw and L.L. Cummings. Berkeley: University of Califor- nia Press, 1988, pp. 213–55; and Campion, M.A.; L. Guerrero; and R. Posthuma. “Reason- able Human Resource Practices for Making Employee Downsizing Decisions.” Organi- zational Dynamics 40 (2011), pp. 174–80.
15.67 Tuna, C. “Many Com- panies Hire as They Fire.” The Wall Street Journal, May 11, 2009, p. B6.
15.68 Ibid.
15.69 Porras, J.I., and P.J. Robertson. “Organiza- tional Development: Theory, Practice, and Research.” In Hand- book of Industrial and Organizational Psychol- ogy. Vol. 3, 2nd ed., ed. M.D. Dunnette and L.M. Hough. Palo Alto, CA: Consulting Psychologists Press, 1992, pp. 710–822.
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16
LEARNING GOALS
16.1 What is organizational culture, and what are its components? 16.2 What general and specific types can be used to describe an organization’s culture? 16.3 What makes a culture strong, and is it always good for an organization to have a strong culture? 16.4 How do organizations maintain their culture and how do they change it? 16.5 What is person–organization fit, and how does it affect job performance and organizational
commitment?
16.6 What steps can organizations take to make sure that newcomers will fit with their culture?
After reading this chapter, you should be able to answer the following questions:
Organizational Culture
INDIVIDUAL OUTCOMES
INDIVIDUAL MECHANISMS
INDIVIDUAL CHARACTERISTICS
ORGANIZATIONAL MECHANISMS
Organizational Culture
Motivation
Trust, Justice, & Ethics
Teams: Characteristics &
Diversity Learning &
Decision Making
Stress
Job Satisfaction
Leadership: Styles &
Behaviors
Organizational Commitment
Job Performance
GROUP MECHANISMS
Ability
Personality & Cultural Values
Teams: Processes &
Communication
Leadership: Power &
Negotiation
Organizational Structure
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T he airline industry is known for being one of the most demanding and stressful work environments to work for. Employees have to deal with all kinds of potential
issues including irate customers and many times they have very little control of the situations they are placed in. Two airline companies, Delta and United, have been in the news largely because of their organizational cultures. Delta has been praised for handling issues while relying on a culture based largely on positive values and empowerment while United has been just the opposite. Each airline has about 85,000 employees and has gone through a major merger within the last decade. During a merger, companies have to decide which of the two company cultures to adopt moving forward (or potentially a mix). Most outsiders say that Delta picked the right culture to maintain (over Northwest’s) and United picked the wrong one (over Continental’s).
Based out of Atlanta, Delta’s culture can be traced all the way back to founder C.E. Woolman who was constantly focused on customer service and asked employees to put themselves in the passenger’s shoes when making deci- sions. Delta’s employees see themselves as part of a “fam- ily” and are pushed to think that way starting the day they are hired. Company programs such as active employee
involvement groups and “Velvet 360,” which lets around 8,000 frontline employees meet and interact with company executives every year, help to maintain this mindset. Delta CEO Ed Bastian says, “Keeping a values-based culture vibrant and alive isn’t easy. It takes a relentless focus and commitment, and it has to be more than just lip service.”
United, on the other hand, has developed a culture focused more on efficiency and cost-cutting. Taking these values to the extreme has resulted in a workplace where employees are constantly scared to break rules out of fear of being fired and executives are seen as “elitist.” Based in Chicago, United has been rated the lowest on most major performance metrics over the last five years and is responsible for 43 percent of all consumer complaints filed against U.S. airlines. Not only customers feel the cost- cutting though; even United’s new uniforms were seen as cheap by employees. However, employees are hope- ful that new CEO Oscar Munoz can help balance various aspects of their culture although it has been slow-going. A United flight attendant says, “The airline was just incredibly sick and Oscar Munoz is like a shot of penicillin. It’s going to get better, but it has to have some time to actually settle in and work.”
DELTA AIRLINES AND UNITED AIRLINES
©RosaIreneBetancourt 11/Alamy
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O R G A N I Z AT I O N A L C U LT U R E
In almost every chapter prior to this point, we have simply given you definitions of important topics. However, there are just about as many definitions of organizational culture as there are people who study it. In fact, research on organizational culture has produced well over 50 differ- ent definitions!1 It seems that the term culture means a great many things to a great many people. Definitions of culture have ranged from as broad as, “The way we do things around here”2 to as specific as . . . well, let’s just suffice it to say that they can get complicated. Not surprisingly, the various definitions of organizational culture stem from how people have studied it. Sociologists study culture using a broad lens and anthropological research methods, like those applied to study tribes and civilizations. Psychologists tend to study culture and its effects on people using survey methods.3 In fact, many psychologists actually prefer the term climate, but for our purposes, we’ll use the two terms interchangeably. In this chapter, we define organizational culture as the shared social knowledge within an organization regarding the rules, norms, and values that shape the attitudes and behaviors of its employees.4
This definition helps highlight a number of facets of organizational culture. First, culture is social knowledge among members of the organization. Employees learn about most important aspects of culture through other employees. This transfer of knowledge might be through explicit communication, simple observation, or other, less obvious methods. In addition, culture is shared knowledge, which means that members of the organization understand and have a degree of con- sensus regarding what the culture is. Second, culture tells employees what the rules, norms, and values are within the organization. What are the most important work outcomes to focus on? What behaviors are appropriate or inappropriate at work? How should a person act or dress while at work? Indeed, some cultures even go so far as to say how employees should act when they aren’t at work. Third, organizational culture shapes and reinforces certain employee attitudes and behaviors by creating a system of control over employees.5 There is evidence that your individual goals and values will grow over time to match those of the organization for which you work.6 This development really isn’t that hard to imagine, given how much time employees spend working inside an organization.
W H Y D O S O M E O R G A N I Z AT I O N S H AV E D I F F E R E N T C U LT U R E S T H A N OT H E R S ?
One of the most common questions people ask when you tell them where you are employed is, “So, tell me . . . what’s it like there?” The description you use in your response is likely to have a lot to do with what the organization’s culture is all about. In calculating your response to the question, you might consider describing the kinds of people who work at your company. More than likely, you’ll do your best to describe the work atmosphere on a regular day. Perhaps you’ll painstakingly describe the facilities you work in or how you feel the employees are treated. You might even go so far as to describe what it is that defines “success” at your company. All of those answers give clues that help organizational outsiders understand what a company is actually like. To give you a feel for the full range of potential answers to the “what’s it like there?” question, it’s necessary to review the facets of culture in more detail.
C U LT U R E C O M P O N E N TS There are three major components to any organization’s culture: observable artifacts, espoused values, and basic underlying assumptions. You can understand the differences among these three components if you view culture like an onion, as in Figure 16-1. Some components of an organiza- tion’s culture are readily apparent and observable, like the skin of an onion. However, other com- ponents are less observable to organizational outsiders or newcomers. Such outsiders can observe,
16.1 What is organizational culture, and what are its components?
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FIGURE 16-1 The Three Components of Organizational Culture
Observable Artifacts
Espoused Values
Basic Underlying
Assumptions
interpret, and make conclusions based on what they see on the surface, but the inside remains a mystery until they can peel back the outside layers to gauge the values and assumptions that lie beneath. When asked about his company’s success, Walter Robb, co-CEO of Whole Foods, said, “If I could draw back the curtain, what you would see is a very strong culture of empowerment, and that is the secret of Whole Foods.”7 The sections that follow review the culture components in more detail.
OBSERVABLE ARTIFACTS Observable artifacts are the manifestations of an organization’s cul- ture that employees can easily see or talk about. They supply the signals that employees interpret to gauge how they should act during the workday. Artifacts supply the primary means of trans- mitting an organization’s culture to its workforce. It’s difficult to overestimate the importance of artifacts, because they help show not only current employees but also potential employees, cus- tomers, shareholders, and investors what the organization is all about. There are six major types of artifacts: symbols, physical structures, language, stories, rituals, and ceremonies.8
Symbols can be found throughout an organization, from its corporate logo to the images it places on its website to the uniforms its employees wear. Think about what Nike’s “swoosh” rep- resents: speed, movement, velocity. What might that symbol convey about Nike’s culture? Or consider Apple Computer’s “apple” logo. That symbol brings to mind Newton’s discovery of grav- ity under the apple tree, conveying the importance of innovation within Apple’s culture. When you think of the words “dark suit, white shirt, tie,” what company do you think of? For many, the symbol represents IBM because that summarizes the company’s long-standing dress code. Even though that dress code hasn’t been in place at IBM for more than 20 years, it still symbolizes a formal, bureaucratic, and professional culture.
Physical structures also say a lot about a culture. Is the workplace open? Does top management work in a separate section of the building? Is the setting devoid of anything unique, or can employ- ees express their personalities? While Takanobu Ito was CEO of Honda Motor, he sent a message about the company’s culture in his office. Ito worked at a plain wooden desk in a room with a dozen other executives.9 John Childress, founding partner of The Principia Group, tells the story of a Ford executive he worked with whose entire office had burned down: “He’d been having terrible prob- lems between departments. There were barriers that meant information wasn’t flowing. He had to quickly rent new premises and all he could find was an open-plan building. The culture changed
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overnight because of the different ways of work- ing.”10 IDEO, a creative design firm, also has an open-office environ- ment, though IDEO lets employees set up their offices however they like. When you walk around their work areas, you’ll be walking underneath bicy- cles hanging over your head and crazy objects and toys in every direc- tion.11 Reed Hastings, CEO of Netflix, doesn’t even have an office! Hast- ings simply walks around meeting with people. When he needs a quiet
space to think he heads to his “watchtower”—a room-sized glass square on the top of Netflix’s main building.12 That being said, most offices don’t look like that. While admitting that spaces across the country are becoming more “open” on average, Jonathan Webb, head of sales at KI, a Wisconsin–based commercial furniture maker, says that “Not everyplace looks like Google, not everybody has a slide in the lobby.”13
Language reflects the jargon, slang, and slogans used within the walls of an organization. Do you know what a CTR, CPC, or Crawler is? Chances are you don’t. If you worked for Yahoo, how- ever, those terms would be second nature to you: CTR stands for click-through rate, CPC stands for cost-per-click, and a Crawler is a computer program that gathers information from other web- sites. If you worked at Microsoft and got an e-mail from a software developer telling you that they were “licking the cookie,” what would you think? For Microsoft employees, “licking the cookie” means that a person or group is announcing that they are working on a feature or product and it is now off-limits for others to work on.14 Home Depot maintains a “stack it high and watch it fly” slogan, which reflects its approach to sales. Yum Brands Inc., which owns Pizza Hut, Taco Bell, KFC, and other fast-food restaurants, expects employees to be “customer maniacs”15—language that conveys its culture for customer interaction.
Stories consist of anecdotes, accounts, legends, and myths that are passed down from cohort to cohort within an organization. Telling stories can be a major mechanism through which lead- ers and employees describe what the company values or finds important. For example, Howard Schultz, CEO of Starbucks, tells the story of how (to improve quality) he forbade the common practice of resteaming milk. What this rule inadvertently created was the loss of millions of dol- lars of milk, as thousands of gallons of lukewarm liquid were poured down the drain. One of his store managers came up with a simple, brilliant suggestion: Put etched lines inside the steam- ing pitchers so baristas would know how much milk to pour for the drink size they were mak- ing, instead of just guessing.16 Paul Wiles, president/CEO of Novant Health in Winston-Salem, North Carolina, believes strongly in the power of storytelling to foster culture; he claims, “Talk about numbers, and people’s eyes glaze over; talk about one child who died unnecessarily, and no one can walk away from that.”17 Recent research finds that telling newcomers stories of low-level employees upholding the values of the firm as opposed to high-level employees is more effective at transmitting culture and affecting their behavior.18
Rituals are the daily or weekly planned routines that occur in an organization. Employees at New Belgium Brewing in Colorado, home of Fat Tire Ale, can enjoy a beer in the tasting room after their shift as well as get one free twelve-pack a week, conveying the importance of both employees and the company’s product.19 At UPS, every driver and package handler attends a man- datory “three-minute meeting” with their managers to help with communication. The 180-second
The ability to set up your own work space, as at
the design firm IDEO, is a hallmark of an open
corporate culture. Would this environment suit your
working style?
Courtesy of Ideo
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time limit helps enforce the importance of punctuality in the UPS culture. The Men’s Wearhouse pays managers quarterly bonuses when theft (referred to as “shrink”) is kept low. That ritual sends a message that “when workers steal from you, they are stealing from themselves and their colleagues.”20 At Davita, the Denver-based kidney dialysis company, CEO Kent Thiry says, “We do songs. We do chants. We do call and response. Many kinds of organizations in all cultures use these methods. Why? For positive energy. Some of our new executives say, ‘That’s really dumb’ or ‘That’s really cheesy.’ And two years later, they’re leading it.” At M5 networks, a New York–based seller of VoIP phone systems, over a third of the employees learn to play musical instruments in a rock band on company time. Dan Hoffman, CEO, says, “As adults, we tend to forget how to learn. The idea with the rock band program was to remind people how to learn.”21
Ceremonies are formal events, generally performed in front of an audience of organizational members. At Care.com, all workers are forced to move desks every year at the same time. CEO Sheila Marcelo assigns the seats. She says, “People don’t have a choice where they sit. Part of the reason was to embrace change, to remove turfiness so that you’re not just chatting with your friends and sitting with your friends. You sit with somebody else from a different team so you get to know their job. What are they doing? What are they saying on the phone? How do they tick? And it’s getting to know different people so that we build a really big team. And we do that every year. And it’s now actually become an exciting thing that people embrace.”22 At San Francisco– based Twitter, CEO Dick Costolo assembles the entire company twice a month in an area near their cafeteria for “tea time,” which is a meeting to update employees on what’s going on and to answer questions.23 Other types of ceremonies revolve around celebrations for meeting quality goals, reaching a certain level of profitability, or launching a new product.
ESPOUSED VALUES Espoused values are the beliefs, philosophies, and norms that a company explicitly states. Espoused values can range from published documents, such as a company’s vision or mission statement, to verbal statements made to employees by executives and managers. Examples of some of Whole Foods Market’s outward representations of espoused values can be found in Table 16-1. What does each of these statements tell you about Whole Foods and what it cares about?
It’s certainly important to draw a distinction between espoused values and enacted values. It’s one thing for a company to outwardly say something is important; it’s another thing for employees
TABLE 16-1 The Espoused Values of Whole Foods
Below is a list of the seven core values that Whole Foods believes lay the foundation for its organizational culture. The company believes that these values set it apart from competing organizations, show others why Whole Foods is a great place to work, and will always be the reasons for the company’s existence regardless of how large it grows. More details about each value can be found on the company’s website.
1. Selling the highest-quality natural and organic products available.
2. Satisfying and delighting our customers.
3. Supporting team member happiness and excellence.
4. Creating wealth through profits and growth.
5. Caring about our communities and our environment.
6. Creating ongoing win–win partnerships with our suppliers.
7. Promoting the health of our stakeholders through healthy-eating education.
Source: From Whole Foods Core Values, http://www.wholefoodsmarket.com/company/corevalues.php.
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to consistently act in ways that support those espoused values. When a company holds to its espoused values over time and regardless of the situations it operates in, the values become more believable both to employees and outsiders. However, in times of economic downturns, staying true to espoused values isn’t always easy. Marriott International struggles during economic down- turns, like many of its competitors in the lodging/travel business. It has been very tempting for the company to do everything it can to slash expenses, but its espoused value of always treating its people right prevents cuts that would harm employee benefits. If you ask any Marriott employee what the guiding principle of the company is all will say some version of J.W. Marriott’s founding philosophy, “Take care of the associates, the associates will take care of the guests, and the guests will come back again and again.”24 It is worth noting that not all companies are open in regards to their values. Trader Joe’s, the Monrovia, California–based grocery chain, is known by its patrons as perhaps the coolest, local product-seeking, customer-oriented business in America. In opposi- tion to Whole Foods, it is also perhaps one of the most secretive companies in the world when it comes to its business practices. In fact, suppliers have to sign agreements that they won’t disclose anything having to do with their business relationship with the store before they are allowed to supply products.25
BASIC UNDERLYING ASSUMPTIONS Basic underlying assumptions are the taken-for-granted beliefs and philosophies that are so ingrained that employees simply act on them rather than questioning the validity of their behavior in a given situation.26 These assumptions represent the deepest and least observable part of a culture and may not be consciously apparent, even to orga- nizational veterans. Edgar Schein, one of the preeminent scholars on the topic of organizational culture, uses the example of safety in an engineering firm. He states, “In an occupation such as engineering, it would be inconceivable to deliberately design something that is unsafe; it is a taken- for-granted assumption that things should be safe.”27 Whatever a company’s underlying assump- tions are, its hidden beliefs are those that are the most likely to dictate employee behavior and affect employee attitudes. They’re also the aspects of an organizational culture that are the most long-lasting and difficult to change.28
G E N E R A L C U LT U R E T Y P E S If we can consider the combination of an organization’s observable artifacts, espoused values, and underlying assumptions, we can begin to classify its culture along various dimensions. Of course, there are many different types of organizational cultures, just like there are many different types of personalities. Many researchers have tried to create general typologies that can be used to describe the culture of any organization. For instance, one popular general typology divides organizational culture along two dimensions: solidarity and sociability. Solidarity is the degree to which group members think and act alike, and sociability represents how friendly employees are to one another.29 Figure 16-2 shows how we might describe organizations that are either high or low on these dimensions. Organizations that are low on both dimensions have a fragmented culture in which employees are distant and disconnected from one another. Organizations that have cultures in which employees think alike but aren’t friendly to one another can be considered mercenary cultures. These types of organizations are likely to be very political, “what’s in it for me” environ- ments. Cultures in which all employees are friendly to one another, but everyone thinks differently and does his or her own thing, are networked cultures. Many highly creative organizations have a networked culture. Organizations with friendly employees who all think alike are communal cultures. There is some evidence that organizations have a tendency to move through the cul- tures as they get larger. Small organizations generally start out as communal cultures oriented around the owner and founder. As companies grow, they tend to move toward a networked culture because solidarity is harder to foster when groups get really large.30 Although we like to think of culture as being stable, it can change, as we discuss later in this chapter.
S P E C I F I C C U LT U R E T Y P E S The typology in Figure 16-2 is general enough to be applied to almost any organization. However, there are obviously other ways to classify an organization’s culture. In fact, many organizations
16.2 What general and specific types can be used to describe an organization’s culture?
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attempt to manipulate observable artifacts and espoused values to create specific cultures that help them achieve their organizational goals. Some of these specific cultures are more relevant in some industries than in others. Although the number of specific cultures an organization might strive for are virtually endless, we focus on five examples: customer service cultures, safety cultures, diversity cultures, sustainability cultures, and creativity cultures.
Many organizations try to create a customer service culture focused on service quality. After all, 80 percent of the gross domestic product in the United States is generated by service-based organi- zations.31 Organizations that have successfully created a service culture have been shown to change employee attitudes and behaviors toward customers.32 These changes in attitudes and behaviors then manifest themselves in higher levels of customer satisfaction and sales.33 Figure 16-3 illustrates the process of creating a service culture and the effects it has on company results. Numerous com- panies claim that the sole reason for their continued existence is their ability to create a service culture in their organization when it wasn’t originally present.34 USAA, the Texas–based provider of financial services to military families, is an excellent example of a customer service culture and one of Fortune’s most admired companies for five years in a row.35 As an example of the pains it goes to in order to create that culture, USAA call center reps are required to spend close to six months in training before actually answering the phones so that they can understand the lives of their military customers.36 Companies might go out of their way to hire customer-oriented employees, but research also shows that a customer service culture can lead to even more customer-oriented behaviors on the part of their employees and a larger bottom-line profit as a result.37
FIGURE 16-2 A Typology of Organizational Culture
Source: Adapted from R. Goffee and G. Jones, The Character of a Corporation (New York: Harper Business, 1998).
Low Sociability
High Sociability
Low Solidarity
High Solidarity
Networked
Fragmented Mercenary
Communal
FIGURE 16-3 The Service Culture Process
Service- Oriented
Leadership Behavior
Service Culture
Service- Oriented Employee Behaviors
Customer Satisfaction
Unit Sales
Source: Adapted from B. Schneider, M.G. Ehrhart, D.M. Mayer, J.L. Saltz, and K. Niles-Jolly, “Understanding Organization– Customer Links in Service Settings,” Academy of Management Journal 48 (2005), pp. 1017–32.
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In the United States, there were more than 2.9 million nonfatal workplace accidents and 3,800 fatal ones in 2015.38 It’s not uncommon for manufacturing or medical companies to go through a string of accidents or injuries that potentially harm their employees. For these organizations, creating a safety culture is of paramount importance. There is a clear difference between organiza- tions in terms of the degree to which safe behaviors at work are viewed as expected and valued.39 A positive safety culture has been shown to reduce accidents and increase safety-based citizenship behaviors.40 A safety culture also reduces treatment errors in medical settings.41 If you live in an area of the United States where oil drilling is going on, you should be happy when you see the names of big oil companies like Shell, ExxonMobil, Chevron, and BP. Residents in those areas will notice a major improvement in safety as these companies, which tend to have stronger safety cultures, buy up the small ones. When Shell bought out a small operator, the first thing it did was shut down for two weeks and retrain the workers. A worker said, “I don’t think there’s any ques- tion that the culture around safety has changed considerably since Shell came here.” Since XTO Energy became a unit of ExxonMobil, its accident rate fell by half, even though drilling takes place in the same locations with the same employees. Other companies such as Chevron are hav- ing similar experiences.42 As with many changes, it’s very important that management’s actions match its words. One study found that employees were highly cynical of a safety program when they perceived a mismatch between espoused and enacted safety values by management.43 Two recent meta-analyses provide clear evidence though that having a safety-oriented culture means higher levels of safety performance and fewer injuries and accidents for an organization.44
There are a number of reasons an organization might want to foster a diversity culture. For the 36,463-employee Cisco Systems, having a culture of diversity might be the key to their survival— or, at a minimum, a core advantage over their competitors. The company is addressing what is a typical problem for many companies in the tech industry: a lack of women (only 23 percent of Cisco employees are women). Those women they do hire don’t stick around due to the issues they face. Cisco is starting from the top by ensuring that a good portion of their leadership team is female. CEO Tom Chambers admits, “We’re not anywhere near where I want to be.” That being said, Cisco has hired a vice president of inclusion and collaboration, and a several-month- long program called JUMP is available for higher-level female employees. A lower-level employee program is in the works.45 The Interpublic Group, a New York–based advertising giant (40,000 employees), has also been recognized for its diversity culture. Heide Gardner, chief diversity and inclusion officer, says, “What I am learning is: Inclusion is pretty much the same everywhere. It’s not just about making diversity counts but about making diversity count. And that holds true wherever you are.”46 Not all diversity cultures start under good terms though. Uber is trying to change toward a culture of diversity after a scandal of sexism and sexual harassment arose in the public. Ariana Huffington, who is on Uber’s board of directors, is leading the charge. “There is a real appetite to change internally. Creating a great culture will be key to the future success and, going forward, there can be no room at Uber for brilliant jerks and zero tolerance for anything but totally respectful behavior,” Huffington said.47
One of the newer specific cultures many firms are trying to create is a sustainability culture. Sustainability cultures are fostered by the mission and values of many organizations. In addition to helping the greater social good, a sustainability culture can be incredibly valuable
in recruiting top talent as the culture resonates well with many of today’s job applicants. One of the firms known most for their sustainability culture is the California–based cloth- ing manufacturer Patagonia, which has become famous for its “Black Friday” ads telling people not to buy their clothes. CEO Rose Marcario says, “A lot of people talk about the ‘Don’t buy this jacket’ ad, but Source: Patagonia
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what it really was saying was, ‘Don’t buy more than you need.’” Focused on making its products as durable as pos- sible, the company wants its gear handed down from gen- eration to generation—if you bring it back to the store, the company will repair it. As a private company, Patagonia has the ability to play an activ- ist type of role that many other firms can’t.48 Founder Yvon Chouinard takes culture fit to an extreme. He has always believed in hiring activist out- doorspeople first and then teaching them the business skills they need to know.49 Clif Bar & Com- pany, the organic food and drink company, puts its money where its values are. Through its “Cool Car and Cool Home” program, the company reimburses employees up to $6,500 for a company- approved hybrid or electric vehicle; $1,500 each year if workers bike, walk, or take public transit to work; and $1,000 if they put solar panels on their house. Through this type of culture, Clif Bar’s turnover sits at 3 percent, and over the last year it received more than 7,000 applications for just 114 open positions.50
Given the importance of new ideas and innovation in many industries, it’s understandable that some organizations focus on fostering a creativity culture. Creativity cultures affect both the quan- tity and quality of creative ideas within an organization.51 3M believes that creativity comes from freedom and not control; workers in R&D are allowed to spend 15 percent of their time research- ing whatever they want.52 One interesting creativity culture is that of Montreal-based Cirque du Soleil, the largest theatrical producer in the world. Known for its incredibly unique shows and over 30 years of highly creative performances, financial results have resulted in the company being sold to a venture capital company. New management is trying to maintain the creativity-based culture that is at the foundation of what many of its employees do while trying to develop its busi- ness focus at the same time.53 SAS, the business analytics software firm based in North Carolina (a fixture on Fortune’s 100 best companies to work for list), has a full-blown infant day care center, a Montessori school, and an after-school program to allow employees to spend more time think- ing about creative solutions to problems and less time worrying about their kids. SAS also surveys its employees annually about the culture to see how the employees stand.54 To see whether you’ve spent time working in a creativity culture, see our OB Assessments feature.
C U LT U R E ST R E N GT H Although most organizations seem to strive for one, not all companies have a culture that creates a sense of definite norms and appropriate behaviors for their employees. If you’ve worked for a company and can’t identify whether it has a strong culture or not, it probably doesn’t. A high level of culture strength exists when employees definitively agree about the way things are supposed to happen within the organization (high consensus) and when their subsequent behaviors are consis- tent with those expectations (high intensity).55 As shown in Figure 16-4, a strong culture serves to unite and direct employees. Weak cultures exist when employees disagree about the way things are supposed to be or what’s expected of them, meaning that there is nothing to unite or direct their attitudes and actions.
Strong cultures take a long time to develop and are very difficult to change. Individuals work- ing within strong cultures are typically very aware of it. However, this discussion brings us to an important point: “Strong” cultures are not always “good” cultures (as evidenced by our chapter opening example of United). Strong cultures guide employee attitudes and behaviors, but that doesn’t always mean that they guide them toward the most successful organizational outcomes.
16.3 What makes a culture strong, and is it always good for an organization to have a strong culture?
Cirque du Soleil is working hard to maintain its creativ- ity culture while trying to build its business.
©Scott Barbour/Getty Images
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OB ASSESSMENTS
SCORING AND INTERPRETATION:
Innovation: Sum up items 1–5. _____ Formalization: Sum up items 6–10. _____
If your score is 22 or above for either facet, your organization or work group is high on that particular dimension. Creative cultures tend to be high on innovation and low on formalization. So if your score was 22 or above for innovation and 21 or below for formalization, then chances are you’ve experienced a strong creativity culture.
Source: From Malcolm G. Patterson, Michael A. West, Viv J. Shackleton, Jeremy F. Dawson, Rebecca Lawthom, Sally Maitlis, David L. Robinson, and Alison M. Wallace, “Validating the Organizational Climate Measure: Links to Managerial Practices, Productivity and Innovation,” Journal of Organizational Behavior 26 (2005), pp. 379–408.
CREATIVITY CULTURE Have you experienced a creativity culture? This assessment is designed to measure two facets of that type of culture. Think of your current job, or the last job that you held (even if it was a part-time or summer job). If you haven’t worked, think of a current or former student group that developed strong norms for how tasks should be done. Answer each question using the response scale provided. Then subtract your answers to the boldfaced questions from 6, with the difference being your new answer for that question. For example, if your original answer for question 7 was “4,” your new answer is “2” (6 – 4). Then sum up your scores for the two facets. (Instructors: Assessments on culture preferences, culture strength, person–organization fit, and change cyni- cism can be found in the PowerPoints in the Connect Library’s Instructor Resources and in the Connect assignments for this chapter.)
1 STRONGLY DISAGREE
2 DISAGREE
3 UNCERTAIN
4 AGREE
5 STRONGLY AGREE
1. New ideas are readily accepted here. ________
2. This company is quick to respond when changes need to be made. ________
3. Management here is quick to spot the need to do things differently. ________
4. This organization is very flexible; it can quickly change procedures to meet new conditions and solve problems as they arise.
________
5. People in this organization are always searching for new ways of looking at problems.
________
6. It is considered extremely important here to follow the rules. ________
7. People can ignore formal procedures and rules if it helps to get the job done.
________
8. Everything has to be done by the book. ________
9. It is not necessary to follow procedures to the letter around here. ________
10. Nobody gets too upset if people break the rules around here. ________
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Executives at Wells Fargo have admitted that their culture led to a major unethical sales-practices scandal that garnered national news and negative publicity. CEO Timothy Sloan is undertaking a full examination of their current culture saying, “Our goal is to uncover our culture’s positive attributes and its potential weaknesses, so our leaders can understand how best to foster an ethi- cal, inclusive, and customer-focused culture.”56 As such, it’s useful to recognize some of the posi- tive and negative aspects of having a strong organizational culture. Table 16-2 lists some of the advantages and disadvantages.57 You might have noticed that all of the advantages in the left-hand column of Table 16-2 allow the organization to become more efficient at whatever aspect of cul- ture is strong within the organization. The right-hand column’s disadvantages all lead toward an organization’s inability to adapt.
FIGURE 16-4 Culture Strength and Subcultures
Strong Culture Weak Culture
Di�erentiated CultureOrganizational Subcultures
TABLE 16-2 Pros and Cons of a Strong Culture
ADVANTAGES OF A STRONG CULTURE DISADVANTAGES OF A STRONG CULTURE
Differentiates the organization from others
Makes merging with another organization more difficult
Allows employees to identify themselves with the organization
Attracts and retains similar kinds of employees, thereby limiting diversity of thought
Facilitates desired behaviors among employees
Can be “too much of a good thing” if it creates extreme behaviors among employees
Creates stability within the organization Makes adapting to the environment more difficult
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In some cases, the culture of an organization is not really strong or weak. Instead, there might be subcultures that unite a smaller subset of the organization’s employees. These subgroups may be created because there is a strong leader in one area of the company that engenders different norms and values or because different divisions in a company act independently and create their own cultures. As shown in Figure 16-4, subcultures exist when the overall organizational culture is supplemented by another culture governing a more specific set of employees. Subcultures are more likely to exist in large organizations than they are in small companies.58 Most organizations don’t mind having subcultures, as long as they don’t interfere with the values of the overall cul- ture. In fact, subcultures can be very useful for organizations if there are certain areas of the orga- nization that have different demands and needs for their employees.59 However, when their values don’t match those of the larger organization, we call subcultures countercultures. Countercultures can sometimes serve a useful purpose by challenging the values of the overall organization or signifying the need for change.60 In extreme cases however, countercultures can split the organiza- tion’s culture right down the middle, resulting in the differentiated culture in Figure 16-4. This is the situation that Whataburger, an 800-location Texas-based hamburger chain, finds itself in as its changing corporate culture is clashing with that of its largest franchisee who wants to maintain a more familial culture.61
M A I N TA I N I N G A N O R GA N I Z AT I O N A L C U LT U R E Clearly an organization’s culture can be described in many ways, from espoused values and under- lying assumptions, to general dimensions such as solidarity or sociability, to more specific types such as service cultures or safety cultures. No matter how we describe an organization’s culture, however, that culture will be put to the test when an organization’s founders and original employ- ees begin to recruit and hire new members. If those new members don’t fit the culture, then the culture may become weakened or differentiated. However, two processes can conspire to help keep cultures strong: attraction–selection–attrition and socialization.
ATTRACTION–SELECTION–ATTRITION (ASA) The ASA framework holds that potential employees will be attracted to organizations whose cultures match their own personality, mean- ing that some potential job applicants won’t apply due to a perceived lack of fit.62 In addition, organizations will select candidates based on whether their personalities fit the culture, further weeding out potential “misfits.” Finally, those people who still don’t fit will either be unhappy or ineffective when working in the organization, which leads to attrition (i.e., voluntary or involun- tary turnover).
Several companies can provide an example of ASA in action. FedEx has worked hard to cre- ate a culture of ethics. The executives at FedEx believe that a strong ethical culture will attract ethical employees who will then strengthen moral behavior at FedEx.63 Headhunters and corpo- rate recruiters are well aware of the fact that employees who have lots of experience in certain types of cultures (i.e., places they “fit”) will have a hard time adapting to other types of cul- tures. One type of culture they look out for specifically is high levels of bureaucracy—recruiters point to British Airways, General Mills, and Occidental Petroleum as prime examples of non- risk-taking, bureaucratic cultures whose employees are rarely successful when they leave to go somewhere else.64 Of course, attraction and selection processes don’t always align employees’ personalities with organizational culture—one reason voluntary and involuntary turnover occurs in every organization. See this chapter’s OB on Screen for an example of how the ASA frame- work works for one company.
SOCIALIZATION In addition to taking advantage of attraction–selection–attrition, organizations also maintain an organizational culture by shaping and molding new employees. Starting a new job with a company is a stressful, complex, and challenging undertaking for both employees and organizations.65 In reality, no outsider can fully grasp or understand the culture of an organiza- tion simply by looking at artifacts visible from outside the company. A complete understanding of organizational culture is a process that happens over time. Socialization is the primary process by which employees learn the social knowledge that enables them to understand and adapt to the organization’s culture. It’s a process that begins before an employee starts work and doesn’t end
16.4 How do organizations maintain their culture, and how do they change it?
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until an employee leaves the organization.66 What is it that an employee needs to learn and adapt to in order to be socialized into his or her new role within an organization? Most of the impor- tant information can be grouped into six dimensions, highlighted in Figure 16-5.67 Research shows that each of these six dimensions is an important area in the process of socialization. Each has unique contributions to job performance, organizational commitment, and person– organization fit.68
Socialization happens in three relatively distinct stages. The anticipatory stage happens prior to an employee spending even one second on the job. It starts the moment a potential employee
OB ON SCREEN THE CIRCLE
Mae, you are a valued part of The Circle. We care about everyone you care about.
With those words, Eamon Bailey (Tom Hanks) tries to show Mae Holland (Emma Watson) how much she is valued in The Circle (Dir: James Ponsoldt, EuropaCorp, 2017). Eamon is head, founder, and one of the three “Wise Men” who are in charge of The Circle—a singular and power- ful Internet company that will remind most people of Google. The movie is an excellent example of how powerful organizational culture can be and we get to watch all aspects of how that culture can be inculcated into employees. Mae is referred to the company by her old college roommate Annie Allerton (Karen Gillan). We get to watch the ASA framework in action as Mae interviews with, gets hired by, and is socialized into The Circle. Circle company headquarters lies on 400 acres of a perfectly manicured and exquisitely thought-out campus. (Those paying attention can note how similar it looks to Apple’s new headquarters in Cupertino, CA.) Employees have access to the best technology, gyms, parties, and even dormlike living spaces.
Of course, it wouldn’t make for a good movie if there weren’t a potential downside to all of this. It turns out that for all the good things The Circle offers employees, there is an expectation of transparency that goes far beyond the levels most companies are willing to go. Mae’s job perfor- mance, life, and everything about her is made available to the company and its employees. When she is noticed missing at several company events, she finds out that the Circle even knows about her father having multiple sclerosis. Fortunately for Mae, the company is willing to add her par- ents to their benefit plan. It’s worth noting in the movie how the culture at the Circle really tries to foster all three forms of organizational commitment: affective, continuance, and normative. Of course, there is a bigger (and ominous) picture to the company’s strategy as company slogans and values like “Secrets are lies” and “Privacy is theft” are often repeated. During a speech, Eamon tells a group of Circle employees, “Knowing is good, but knowing everything is better.”
©Everett Collection Inc/Ron Harvey/Alamy
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hears the name of the organization. When you see the company name Microsoft, what does it make you think about? What are the images that come to your mind? Anticipatory socialization begins as soon as a potential employee develops an image of what it must be like to work for a given company. The bulk of the information acquired during this stage occurs during the recruit- ment and selection processes that employees go through prior to joining an organization. Relevant information includes the way employees are treated during the recruitment process, the things that organizational insiders tell them about the organization, and any other information employ- ees acquire about what the organization is like and what working there entails.
The encounter stage begins the day an employee starts work. There are some things about an organization and its culture that can only be learned once a person becomes an organizational insider. During this stage, new employees compare the information they acquired as outsiders during the anticipatory stage with what the organization is really like now that they’re insiders. To the degree that the information in the two stages is similar, employees will have a smoother time adjusting to the organization. Problems occur when the two sets of information don’t quite match. This mismatch of information is called reality shock. Reality shock is best exemplified by the employee who says something to the effect of, “Working at this company is not nearly what I expected it to be.” Surveys suggest that as many as one-third of new employees leave an organiza- tion within the first 90 days as a result of unmet expectations.69 The goal of the organization’s socialization efforts should be to minimize reality shock as much as possible. We’ll describe some ways that organizations can do this effectively in our Application section that concludes this chapter.
The final stage of socialization is one of understanding and adaptation. During this stage, new- comers come to learn the content areas of socialization and internalize the norms and expected behaviors of the organization. The important part of this stage is change on the part of the employee. By looking back at the content areas of socialization in Figure 16-5, you can begin to picture what a perfectly socialized employee looks like. The employee has adopted the goals and values of the organization, understands what the organization has been through, and can
FIGURE 16-5 Dimensions Addressed in Most Socialization Efforts
Source: G.T. Chao, A.M. O’Leary-Kelly, S. Wolf, H.J. Klein, and P.D. Gardner, “Organizational Socialization: Its Content and Consequences,” Journal of Applied Psychology, Vol. 79, 1994, pp. 730–43. 1994 by the American Psychological Association.
Goals and Values Adoption of the spoken
and unspoken goals and values of the
organization
Performance Proficiency Knowledge of the roles required and the tasks
involved in the job
People Successful and satisfying
relationships with organizational members
Politics Information regarding formal
and informal work relationships and power
structures within the organization
Language Knowledge of the
acronyms, slang, and jargon that are unique
to the organization
History Information regarding the organization’s traditions,
customs, myths, and rituals
Organizational Socialization
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converse with others in the organization using technical language and specific terms that only insiders would understand. In addition, the employee enjoys and gets along with other employees in the organization, knows whom to go to in order to make things happen, and understands and can perform the key functions of his or her job. Talk about the perfect employee! Needless to say, that’s quite a bit of information to gain—it’s not a process that happens overnight. Some would say that this last stage of socialization never truly ends, as an organization’s culture continues to change and evolve over time.70 However, organizations also know that the more quickly and effec- tively an employee is socialized, the sooner that employee becomes a productive worker within the organization.
It’s important to note that the length of the socialization process varies depending on the char- acteristics of the employee, not just the company. For example, some employees might progress more rapidly through the stages because of the knowledge they possess, their ability to recognize cultural cues, or their adaptability to their environment. In fact, there is growing evidence that pro- activity on the part of the employee being socialized has a significant effect on socialization out- comes.71 Some organizations might help their employees socialize more quickly because they have stronger cultures or cultures that are more easily understandable. The biggest difference though is that some organizations simply work harder at socializing their employees than others. Recent research goes as far as to suggest that we can measure how fast an employee socializes by looking at the language he or she uses in e-mails. Employees whose e-mails use the same language as oth- ers in the company exhibit a higher degree of cultural fit.72 For an argument about the potential dangers of too much socialization, see this chapter’s OB at the Bookstore.
C H A N G I N G A N O R GA N I Z AT I O N A L C U LT U R E Given all the effort it takes to create and maintain a culture, changing a culture once one has been established is perhaps even more difficult. In fact, estimates put the rate of successful major culture change at less than 20 percent.73 Even before she became CEO, Mary Barra, as chief product officer at General Motors, was trying to change GM’s bureaucratic, rule-oriented culture. Rather than talking about a Corvette, she says she’d rather talk about “driving an orga- nization that’s customer focused.” She’s worked on this by removing layers of management and reducing the employee policy manual by 80 percent. She even changed the dress code to “dress appropriately” as a symbol for having employees take responsibility. When questioned by people uncomfortable with the ambiguity she responded, “So you’re telling me I can trust you to give you a company car and to have you responsible for tens of millions of dollars, but I can’t trust you to dress appropriately?” The dress code wasn’t about a problem GM was dealing with, but as Barra said, “there was a culture in the past where the rule was the rule and when you weren’t empowered to make the decision you could all just complain about the rule.”74 In prac- tice though, two other ways are more common methods to change a culture: changes in leader- ship and mergers or acquisitions.
CHANGES IN LEADERSHIP There is perhaps no bigger potential driver of culture than the leaders and top executives of organizations. Just as the founders and originators of organizations set the tone and develop the culture of a new company, subsequent CEOs and presidents leave their mark on the culture. Many times, leaders are expected simply to sustain the culture that has already been created.75 At other times, leaders have to be a driving force for change as the envi- ronment around the organization shifts. In fact, there is some recent evidence that CEOs whose leadership styles are different from their company’s culture are more effective.76 This expectation is one of the biggest reasons organizations change their top leadership. For example, Nortel Net- works hired two former Cisco executives into the roles of chief operating officer and chief technol- ogy officer. It was Nortel’s hope that these executives would help bring some of Cisco’s culture of aggressiveness to Nortel and thus allow it to compete more effectively in the high-technology industry environment.77 Not all such moves work out, though. Retailer JCPenney brought in for- mer Apple retail executive Ron Johnson as CEO, who shook up the company through lots of cultural changes including renaming the company “JCP.” Johnson was hailed as “the ideal leader to fix JCP.” One of the CEO’s top lieutenants said, “If people are saying the culture is becoming
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OB AT THE BOOKSTORE ORIGINALS by Adam Grant (New York: Viking, 2016)
When we become curious about the dissatisfying defaults in our world, we begin to recognize that most of them have social origins: Rules and systems were created by people. And that aware- ness gives us the courage to contemplate how we can change them.
With those words, Adam Grant challenges readers to start to think about how originality and creativity generally occur inside orga- nizations. Grant believes that far too often organizations have a culture that tends to suppress creativity as opposed to allowing it to flourish. This happens primarily when everyone starts thinking alike. Grant provides a number of examples where research goes against what most people have a tendency to think when it comes to nonconformity inside organizations. For instance, there is a whole chapter essentially on why procrastination is a good thing! Grant’s experience as a consultant for a number of companies (Disney, the NFL, Goldman Sachs) and his own research help him to provide easily relatable examples to the points he makes. Grant tells a story about how he was offered the opportunity to invest in Warby Parker before the company had even created a website. He turned it down primarily because none of the four founders was going to run the business full-time as they were all going to keep other full-time jobs
to hedge their bets. Grant saw that as a sign they weren’t willing to take a risk and it turned out to be the worst investment decision of his life. As it turns out, opposite of what most people think, research shows that successful entrepreneurs actually tend to be highly risk averse.
One of Grant’s major premises in the book is that the more familiar someone is with a domain, the less likely they are to challenge it and be creative. Middle managers in organiza- tions are likely to be the least creative. However, we can all train ourselves to be more original. Grant offers readers an action list of things individuals can do to be more creative, but also provides examples and ideas for leaders and companies to create a culture of originality within their organizations.
©Roberts Publishing Services
much more Appley, I take that as a complement.” However, the long-term employees of the com- pany did not take it that way. They felt like they were treated poorly, always being judged, and were sick of the constant Apple references. Less than a year later, after dismal results and low employee morale, Johnson was removed and the prior CEO who was familiar with the underlying JCPenney culture took over.78
MERGERS AND ACQUISITIONS Merging two companies with two distinct cultures is a sure- fire way to change the culture in an organization. The problem is that there is just no way to know what the culture will look like after the merger takes place. What the new culture will resemble is a function of both the strength of the two cultures involved in the merger and how similar they are to each other.79 Ideally, a new culture would be created out of a compromise in which
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As mentioned previously, there is perhaps no more perilous journey for a company to take than merging with or acquiring another large firm. These problems are exacerbated when the two com- panies are from different countries. As few as 30 percent of international mergers and acquisitions create shareholder value. That hasn’t stopped companies from trying though, as 2015 was a record year for global mergers and acquisitions ($4.7 trillion). 2016 was smaller due to Brexit and other political uncertainties, but still worth over $2.5 trillion.
Hopefully, we’ve illustrated the inherent difficulties of trying to merge two different cultures even when the organizations are in the same country. These cultural differences can be magnified when international culture plays a role as well. Chances are good that your experiences in college have shown you that different countries have different cultures, just like organizations. People who come from different countries tend to view the world differently and have different sets of values as well. For example, DaimlerChrysler bought a controlling stake in Mitsubishi Motors, thinking that a strong alliance between the two automotive companies would result in high levels of value for both. Unfortunately, the merger broke up for reasons that have been attributed to the international culture differences between the two firms. The Japanese managers tended to avoid “unpleasant truths” and stay away from major change efforts—a tendency that DaimlerChrysler never confronted but also could not accept.
There are many stories of failed international mergers, and one of the greatest reasons for them is that corporations fail to recognize the impact that national culture differences (in addition to organizational culture differences) have on their ability to be successful. One such acquisition that hasn’t fallen victim to this issue was the purchase of Volvo Car Corporation (Sweden) from Ford by China’s Geely Holding Group. Although the relationship started out extremely rocky, with Geely executives storming out of an initial meeting in Sweden because they felt they were being treated like they were stupid, the two companies seem to have reached some compromises. Volvo, somewhat against its more safe and family friendly culture, is now producing some high- end luxury models to compete with Mercedes-Benz and BMW, which fit with Chinese desires. In addition, although Geely wanted to build three assembly plants in China to jump-start sales, it followed Volvo’s more slow, quality approach at the behest of Volvo’s CEO. Volvo is now thriving. Li Shufu, founder of Geely, says of Volvo, “A tiger belongs to the wild world and not confined to a zoo. We need to liberate this tiger.”
OB INTERNATIONALLY
Sources: Anonymous, “Global Mergers and Acquisitions,” The Economist (online), Oct 1, 2016; S. Brahy, “Six Solution Pillars for Successful Cultural Integration of International; As,” Journal of Organizational Excellence, Autumn 2006, pp. 53–63; M. Dunne, “Volvo’s Unlikely Comeback is Gathering Speed, Thanks to a Visionary Chinese Owner,” Forbes (online), Feb 25, 2016; G. Edmondson, “Auf Wiedersehen, Mitsubishi,” BusinessWeek (online), November 11, 2005; B. Bremmer, “A Tale of Two Auto Mergers,” BusinessWeek (online), April 29, 2004; M. Farrell, “2015 Becomes the Biggest MA Year Ever,” The Wall Street Journal (online), Dec 13, 2015; and N. Shirouzu, “Volvo’s Search for Common Ground,” The Wall Street Journal (online), June 6, 2011.
the best of both companies is represented by the new culture. There are many stories that have arisen from the mergers of companies with very different cultures: AOL/Time Warner, Exxon/ Mobil, HP/Compaq, and RJR/Nabisco, to name a few. Unfortunately, very few of these stories are good ones. Mergers rarely result in the strong culture that managers hope will appear when they make the decision to merge. In fact, most merged companies operate under a differentiated culture for an extended period of time. Some of them never really adopt a new identity, and when they do, many of them are seen as failures by the outside world. This perception is especially true
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in global mergers, in which each of the companies not only has a different organizational culture but is from a different country as well, as our OB Inter- nationally box details. Every now and then though, a merger happens in which the leadership focuses on culture from the start. This was the case with the merger of Delta and Northwest Airlines (this chap- ter’s opening example). Rather than risk creating a fragmented culture, then-Delta CEO Richard Ander- son went to the extreme of changing the ID numbers on every employee’s security badge so that employees could not tell whether a colleague started with Delta
or Northwest. According to Anderson, he wanted to avoid a situation in which “employees were constantly sizing up which side you were on.”80
Merging two different cultures has major effects on the attitudes and behaviors of organi- zational employees. Companies merge for many different strategic reasons, and though many managers and executives may realize its importance, whether the cultures will match is rarely the deciding criterion.81 Slightly less troublesome but still a major hurdle to overcome are acqui- sitions. In most instances, the company doing the acquiring has a dominant culture to which the other is expected to adapt. A more recent example is the acquisition of Anheuser-Busch by the Belgian-based firm InBev. InBev and its CEO Carlos Brito are known for their heavy- handed, cost-cutting ways; Anheuser-Busch is known for its free-spending atmosphere in which employees get free admission to the company’s theme parks and two cases of free beer each month. One industry analyst joked that the Budweiser Clydesdales get better treatment than the average InBev employee.82 Another example comes from the acquisition of Mail Boxes Etc. by UPS. Strategically, the acquisition had many advantages that supposedly would allow UPS to compete better with FedEx and the U.S. Postal Service. However, the culture clash between the efficiency and rigidness of UPS and the entrepreneurial spirit of Mail Boxes Etc. franchisees has caused UPS some major headaches.83 We’ve noted how difficult it is to get just one person to adapt to an established culture through the socialization process. Can you imagine how dif- ficult it is to change an entire organization, all at one time?
One of the major reasons that one company purchases another is simply to acquire the technol- ogy that it has. In such cases, the acquired company usually is expected to change to fit the buyer’s culture. However, a new approach that has been used by several companies, including Hewlett- Packard and Yahoo, is to buy companies with the intention of infusing their different culture into their own.84 Clorox, the Oakland, California–based consumer products manufacturer, acquired Massachusetts-based personal care product maker Burt’s Bees with the full knowledge of the com- pany’s environmentally friendly and socially responsible culture, which Clorox hoped would help in its quest to be more environmentally focused as well.85 Although this process of “innovation via absorption” looks good on paper, it’s very difficult, and companies need to think twice about changing the fundamental cultures they have built.
S U M M A RY: W H Y D O S O M E O R GA N I Z AT I O N S H AV E D I F F E R E N T C U LT U R E S T H A N OT H E R S ? So why do some organizations have different cultures than others? As shown in Figure 16-6, attraction–selection–attrition processes, socialization, changes in leadership, and mergers and acquisitions shape the three components of organizational culture: basic underlying assumptions, espoused values, and observable artifacts. Specific combinations of those culture components then give rise to both general and specific culture types. For example, cultures can be categorized on the basis of solidarity and sociability into fragmented, mercenary, communal, and networked types. Cultures can also be categorized into more specific types, such as customer service, safety, diversity, and creativity. Finally, those general and specific types can be further classified accord- ing to the strength of the culture. Taken together, these processes explain “what it’s like” within the hallways of a given organization.
Clorox acquired Burt’s Bees in the hopes of using
the company’s environ- mentally friendly culture to
accentuate its own.
©Bloomberg/Jb Reed/Getty Images
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FIGURE 16-6 Why Do Some Organizations Have Different Cultures Than Others?
Attraction/ Selection/ Attrition
Socialization
Changes in Leadership
Mergers and Acquisitions
CULTURE COMPONENTS
General Culture Types
• Fragmented • Mercenary • Communal • Networked
Specific Culture Types
• Customer service • Safety • Diversity • Sustainability • Creativity
Culture Strength WEAK STRONG
Observable Artifacts
Espoused Values
Basic Underlying
Assumptions
H O W I M P O R TA N T I S O R G A N I Z AT I O N A L C U LT U R E ?
Normally, this section is where we summarize the importance of organizational culture by describing how it affects job performance and organizational commitment—the two outcomes in our integrative model of OB. However (similar to organizational structure in Chapter 15), it’s difficult to summarize the importance of culture in this way because there are so many
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different types and dimensions of the concept. Although there has been some support for distinct culture types having an effect on employee attitudes,86 high solidarity cultures, high sociability cultures, diversity cultures, creativity cultures, and so forth all have different effects on performance and commitment—effects that likely vary across different types of organiza- tions and industries.
Regardless of the type of culture we’re talking about, however, one concept remains impor- tant for any employee in any business: fit. Think for a moment about working for an orga- nization whose culture doesn’t match your own values. Maybe you work for an organization that produces a product that you don’t believe in or that might be harmful to others, such as Philip Morris, Budweiser, or Harrah’s casinos. Maybe your employer is an organization that expects you to perform questionable behaviors from an ethical standpoint or produces a prod- uct that’s of poor quality. Facebook, Salesforce, and AirBNB are all organizations that publicize their belief in promoting social values in addition to (and sometimes above) making money.87 Person–organization fit is the degree to which a person’s personality and values match the culture of an organization. Employees judge fit by thinking about the values they prioritize the most, then judging whether the organization shares those values. Table 16-3 provides a set of values that many people have used to judge fit. Which of these values would you say are the most important to you?
Two meta-analyses illustrate the importance of person–organization fit to employees.88 When employees feel that their values and personality match those of the organization, they experience higher levels of job satisfaction and feel less stress about their day-to-day tasks. They also feel higher levels of trust toward their managers. Taken together, those results illustrate why person–organization fit is so highly correlated with organizational commitment, one of the two outcomes in our integrative model of OB (see Figure 16-7). When employees feel they fit with their organization’s culture, they’re much more likely to develop an emotional attachment to the company. The effects of fit on job performance are weaker, however. In general, person– organization fit is more related to citizenship behaviors than to task performance. Employees who sense a good fit are therefore more likely to help their colleagues and “go the extra mile” to benefit the company.
16.5 What is person– organization fit and how does it affect job perfor- mance and organizational commitment?
TABLE 16-3 Values Used to Judge Fit with a Culture
Flexible Efficient
Risk taking Predictable
Innovation Opportunistic
Customer oriented Detailed
Supportive Informal
Ethical Free thinking
Diverse Optimistic
Team-based Compassionate
Competitive Learning oriented
For a more detailed list of values used in research, see: C.A. O’Reilly, J.A. Chatman, and D.F. Caldwell, “People and Organizational Culture: A Profile Comparison Approach to Assessing Person–Organization Fit,” Academy of Manage- ment Journal, Vol. 34, 1991, pp. 487–516.
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A P P L I C AT I O N : M A N AG I N G S O C I A L I Z AT I O N
Most organizations recognize the importance of having employees adapt to the culture of their organization quickly. Luckily, there are a number of actions that organizations can take to help their employees adapt from the first day they walk in the door. Table 16-4 highlights some of the different tactics organizations can use when socializing their employees. Note that companies can take two very different approaches to the socialization process. The left-hand column represents a view of socialization in which the goal of the process is to have newcomers adapt to the organiza- tion’s culture. This view assumes that the organization has a strong culture and definite norms and values that it wants employees to adopt, which is not always the case. Some organizations don’t have a strong culture that they want employees to adapt to, or they might be trying to change their culture and want new employees to come in and “shake things up.” The socialization tactics listed in the right-hand column of Table 16-4 might be more appropriate in such circumstances. In addi- tion to the socialization tactics listed in the table, there are three other major ways in which orga- nizations routinely and effectively help speed up the socialization process of newcomers: realistic job previews, orientation programs, and mentoring.
REALISTIC JOB PREVIEWS One of the most inexpensive and effective ways of reducing early turnover among new employees is through the use of realistic job previews.89 Realistic job previews (RJPs) occur during the anticipatory stage of socialization during the recruitment process. They
16.6 What steps can organiza- tions take to make sure that newcomers will fit with their culture?
FIGURE 16-7 Effects of Person–Organization Fit on Performance and Commitment
Sources: W. Arthur Jr., S.T. Bell, A.J. Villado, and D. Doverspike, “The Use of Person–Organization Fit in Employment- Related Decision Making: An Assessment of Its Criterion-Related Validity,” Journal of Applied Psychology 91 (2007), pp. 786–801; and A.L. Kristof-Brown, R.D. Zimmerman, and E.C. Johnson, “Consequences of Individuals’ Fit at Work: A Meta-Analysis of Person–Job, Person–Organization, Person–Group, and Person–Supervisor Fit,” Personnel Psychology 58 (2005), pp. 281–342.
Person–Organization Fit has a weak positive e�ect on Performance. Employees who fit with their organization tend to have slightly higher levels of Task Performance, with e�ects on Citizenship Behavior slightly stronger. Not much is known about the impact of fit on Counterproductive Behavior.
Person–Organization Fit has a strong positive e�ect on Commitment. Employees who fit with their organization tend to have higher levels of A�ective Commitment. Not much is known about the impact of fit on Continuance or Normative Commitment.
Person– Organization
Fit
Job Performance
Organizational Commitment
Person– Organization
Fit
Represents a strong correlation (around .50 in magnitude).
Represents a moderate correlation (around .30 in magnitude).
Represents a weak correlation (around .10 in magnitude).
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involve making sure a potential employee has an accurate picture of what working for an organi- zation is going to be like by highlighting both the positive and the negative aspects of the job.90 Although RJPs almost always occur prior to hiring, Cisco Systems has a unique program called “Cisco Choice” in which its 2,500 new hires a year interview and hear presentations from manag- ers in more than 30 business units after they are hired. The new hires then get to choose where in the company they want to work. Cisco feels that by allowing new hires to pick jobs based on their interest and skills, they are likely to work harder and stay with the company. It also lessens reality shock and shortens the encounter stage that normally accompanies initial employment. James Revis, after going through Cisco Choice as a new hire, sees benefits even beyond his choice of where to work, “Normally [new employees] just know what their department does and what their specific product is. When we collaborate, I already know what the other department does.” Given Cisco’s astounding 98 percent two-year retention rate, it’s hard to argue with the company.91
ORIENTATION PROGRAMS One effective way to start the socialization process is by having new employees attend some form of newcomer orientation session. Apparently most organizations agree, given that 64–93 percent of all organizations use some form of orientation training pro- cess.92 Not all orientation programs are alike however, and different types of orientation training can be more effective than others.93 Orientation programs have been shown to be effective trans- mitters of socialization content, such that those employees who complete orientation have higher levels of satisfaction, commitment, and performance than those who don’t.94 Airbnb’s CEO Brian Chesky believes that setting the culture is one of his top priorities, and he welcomes new hires each week during orientation where he encourages them to be “crazy” and tells them that they are there to “design the future world we want to live in.” Chesky once wrote to employees, “If you break the culture, you break the machine that creates your products.”95 Jet Blue CEO Dave Barger also believes strongly in these sessions and shows it by having been to more than 250 of them over the last decade. Barger tells his new hires, “The hard product—airplanes, leather seats, satellite TVs, bricks and mortar—as long as you have a checkbook, they can be replicated. It’s the culture that can’t be replicated. It’s how we treat each other. Do we trust each other? Can we push back on each other? The human side of the equation is the most important part of what we’re doing.”96
TABLE 16-4 Tactics Organizations Use to Socialize New Employees
TACTICS DESIGNED TO ENCOURAGE ADAPTATION TO
THE ORGANIZATION’S CULTURE
TACTICS DESIGNED TO DISCOURAGE ADAPTATION TO THE
ORGANIZATION’S CULTURE
Orient new employees along with a group of other new employees.
Orient new employees by themselves.
Put newcomers through orientation apart from current organizational members.
Allow newcomers to interact with current employees while they are being oriented.
Provide hurdles that are required to be met prior to organizational membership.
Allow organizational membership regardless of whether any specific requirements have been met.
Provide role models for newcomers. Use no examples of what an employee is sup- posed to be like.
Constantly remind newcomers that they are now part of a group and that this new group helps define who they are.
Constantly affirm to newcomers that they are to be themselves and that they were chosen for the organization based on who they are.
Sources: Adapted from G.R. Jones, “Socialization Tactics, Self-Efficacy, and Newcomers’ Adjustments to Organizations,” Academy of Management Journal 29 (1986), pp. 262–79; and J. Van Maanen and E.H. Schein, “Toward a Theory of Orga- nizational Socialization,” Research in Organizational Behavior 1 (1979), pp. 209–64.
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MENTORING One of the most popular pieces of advice given to college students as they begin their careers is that they need to find a mentor or coach within their organization.97 Mentoring is a process by which a junior-level employee (protégé) develops a deep and long-lasting relation- ship with a more senior-level employee (mentor) within the organization. The mentor can provide social knowledge, resources, and psychological support to the protégé both at the beginning of employment and as the protégé continues his or her career with the company. Mentoring has always existed in companies on an informal basis. However, as organizations continue to learn about the strong benefits of these relationships, they’re more frequently instituting mentoring programs that formally match newcomers with mentors.98 In fact, nearly 76 percent of companies use mentoring in order to develop skills.99 Formal programs allow the company to provide consis- tent information, train mentors, and ensure that all newcomers have the opportunity to develop one of these fruitful relationships. Morgan Stanley started its program by having leaders develop a curriculum for what makes employees successful within the firm and then paired mentors and protégés who were expected to cover specific material.100 McGraw-Hill Education paired mentors and protégés based on what the protégé’s goals were and who could best help them achieve those goals.101 Similarly, J.P. Morgan Chase & Co. has created a project named Pathfinder where new employees recruited from the military are paired with experienced veterans to mentor them on areas unique to their transition to civilian life.102 Another unique program is that of the notori- ously private company, Mars, Inc., the Virginia–based candy maker where employees are fondly referred to as “Martians.” Although many employees get assigned a traditional mentor, the organi- zation has a reverse-mentoring program for its executives where younger workers are assigned to bring them up to speed on social media.103
16.1 Organizational culture is the shared social knowledge within an organization regarding the rules, norms, and values that shape the attitudes and behaviors of its employees. There are three components of organizational culture: observable artifacts, espoused values, and basic underlying assumptions. Observable artifacts include symbols, physical structures, language, stories, rituals, and ceremonies.
16.2 An organization’s culture can be described on dimensions such as solidarity and sociabil- ity to create four general culture types: networked, communal, fragmented, and mercenary. Organizations often strive to create a more specific cultural emphasis, as in customer service cultures, safety cultures, diversity cultures, and creativity cultures.
16.3 Strong cultures have the ability to influence employee behaviors and attitudes. Strong cultures exist when employees agree on the way things are supposed to happen and their behaviors are consistent with those expectations. Strong cultures are not necessarily good or bad. Generally, a culture’s effectiveness depends on how well it matches the company’s outside environment. To this degree, adaptive cultures can be very useful.
16.4 Organizations maintain their cultures through attraction, selection, and attrition processes and socialization practices. Organizations change their cultures by changing their leader- ship or through mergers and acquisitions.
16.5 Person–organization fit is the degree to which a person’s values and personality match the culture of the organization. Person–organization fit has a weak positive effect on job performance and a strong positive effect on organizational commitment.
16.6 There are a number of practices organizations can utilize to improve the socialization of new employees, including realistic job previews, orientation programs, and mentoring.
TA K E AWAY S
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K E Y T E R M S
• Organizational culture p. 510 • Observable artifacts p. 511 • Symbols p. 511 • Physical structures p. 511 • Language p. 512 • Stories p. 512 • Rituals p. 512 • Ceremonies p. 513 • Espoused values p. 513 • Basic underlying assumptions p. 514 • Fragmented cultures p. 514 • Mercenary cultures p. 514 • Networked cultures p. 514 • Communal cultures p. 514 • Customer service culture p. 515 • Safety culture p. 516
• Diversity culture p. 516 • Sustainability p. 516 • Creativity culture p. 517 • Culture strength p. 517 • Subcultures p. 520 • Countercultures p. 520 • ASA framework p. 520 • Socialization p. 520 • Anticipatory stage p. 521 • Encounter stage p. 522 • Reality shock p. 522 • Understanding and adaptation p. 522 • Person–organization fit p. 528 • Realistic job previews p. 529 • Newcomer orientation p. 530 • Mentoring p. 531
16.1 Have you or a family member worked for an organization that you would consider to have a strong culture? If so, what made the culture strong? Did you or they enjoy working there? What do you think led to that conclusion?
16.2 Is it possible for an employee to have personal values that are inconsistent with the values of the organization? If so, how is this inconsistency likely to affect the employee’s behavior and attitudes while at work?
16.3 How can two companies with very different cultures that operate in the same industry both be successful? Shouldn’t one company’s culture automatically be a better fit for the environment?
16.4 When you think of the U.S. Postal Service’s culture, what kinds of words come to mind? Where do these impressions come from? Do you think your impressions are accurate? What has the potential to make them inaccurate?
16.5 Think about the last job you started. What are some unique things that companies might do to reduce the amount of reality shock that new employees encounter? Are these meth- ods likely to be expensive?
D I S C U S S I O N Q U E S T I O N S
Although all airlines have an incredibly long list of policies and rules they have to follow in order to be consistent and to guarantee passenger safety and security, two examples show that there can be a great deal of latitude in how employees approach unique and novel situations. On April 9, 2017, a video of United Flight 3411’s passenger Dr. David Dao went viral. The video showed Dr. Dao being forcibly removed from the airplane by Chicago airport officers after he refused to leave his seat after the airline had overbooked the flight and needed to sit some of its own employees on the plane. Dr. Dao ended up with a broken nose and two missing teeth. United
C A S E : D E LTA / U N I T E D
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ended up with a public relations nightmare, a drop in its stock price, petitions to boycott the air- line, and calls for the CEO to resign. Dr. Dao settled with the company for damages, but United is still feeling the impact of what many say were culture-based decisions to this day.
According to insiders and ex-employees, United had developed an efficiency culture to where employees were expected to “follow manuals” and were hesitant to do anything that wasn’t strictly according to written guidelines. On the day in question, once United gate agents had no takers for their offer of $800 and a hotel voucher, the agents (following the rules) used a computer program to identify the passengers of “least value” to the airline. Once Dr. Dao was identified and refused to de-plane, the agents (following the rules) called for airport security. The airline was vilified on social media for not coming up with other options. United CEO Oscar Munoz called the event a “system failure” and that United hadn’t given employees “the proper tools, policies, and procedures that allow them to use their common sense.”
In contrast, six months prior to that United episode, a computer outage caused all of Delta’s flights to be grounded for an entire day. (Delta was forced to cancel about 1,000 flights on the day of the outage and another 1,000 over the next two days.) Delta employees recall the event being a horrible experience for themselves and all the passengers involved. CEO Ed Bastian credits Delta’s culture for saving the day. Stories of Delta employees’ empathy with passengers and consistent showing of positive emotions seemed to go a long way with customers, some of whom even expressed support in various ways to Delta employees during the outage. Although most expected a decline, Delta’s monthly customer satisfaction scores actually went up following the incident.
16.1 Why is an organization’s culture perhaps the most evident during crisis situations?
16.2 What causes companies like Delta and United to become so different in regard to organiza- tional culture?
16.3 What will it take for United to overcome its culture that has been built up over such a long period of time?
Sources: E. Bastian. “What I’ve Learned in My First Days as Delta’s New CEO,” linkedin.com, May 26, 2016: https://www .linkedin.com/pulse/what-ive-learned-my-first-days-deltas-new-ceo-ed-bastian; D. Bennett. “The United Way,” Boomberg Businessweek, January 18, 2016, pp. 50–55; S. Carey. “Behind United Airlines’ Fateful Decision to Call Police,” The Wall Street Journal, April 16, 2017: https://www.wsj.com/articles/behind-united-airlines-fateful-decision-to-call-police- 1492384610; A. Hartung. “Why United Airlines Abuses Customers: The Risks of Operational Excellence,” forbes.com, April 10, 2017: https://www.forbes.com/sites/adamhartung/2017/04/10/why-united-airlines-abuses-customers-the-risks- of-operational-excellence/#78b1a38fbb10; J. Ostrower. “United CEO Oscar Munoz Is Walking a Tightrope to Fix an Airline,” cnn.com, April 18, 2017: http://money.cnn.com/2017/04/18/news/companies/united-oscar-munoz-employees/; and J. Roberts. “Delta,” Fortune, March 15, 2017, pp. 106–9.
E X E R C I S E : U N I V E R S I T Y C U LT U R E
The purpose of this exercise is to explore how organizational culture is transmitted through observable artifacts. This exercise uses groups, so your instructor will either assign you to a group or ask you to create your own group. The exercise has the following steps:
16.1 Using the following table, consider the observable artifacts that transmit the organizational culture of your university.
16.2 Consider the sorts of values listed in Table 16-3. If you consider the symbols, physical struc- tures, language, stories, rituals, and ceremonies identified in step 1, what core values seem to summarize your university’s culture? Using a transparency, laptop, or board, list the one value that seems to be most central to your university’s culture. Then list the three cultural artifacts that are most responsible for transmitting that core value. Present your results to the class.
16.3 Class discussion (whether in groups or as a class) should center on the following topics: Do you like how your university’s culture is viewed, as represented in the group presentations? Why or why not? If you wanted to change the university’s culture to represent other sorts of values, what process would you use?
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16.1 Verbeke, W.; M. Volgering; and M. Hessels. “Exploring the Conceptual Expansion within the Field of Organiza- tional Behavior: Orga- nizational Climate and Organizational Culture.” Journal of Management Studies 35 (1998), pp. 303–29.
16.2 Source: Deal, T.E., and A.A. Kennedy, Corporate Cultures: The Rites and Rituals of Corporate Life. Reading, MA: Addison-Wesley, 1982.
16.3 Schneider, B., V. González-Romá, C. Ostrof, and M. West. “Organiza- tional Climate and Culture: Reflections on the History of the Constructs in the Journal of Applied Psychology.” Journal of Applied
Psychology 102 (2017), pp. 468–82.
16.4 Adapted from O’Reilly, C.A., III; J. Chatman; and D.L. Caldwell. “People and Organizational Cul- ture: A Profile Com- parison Approach to Assessing Person– Organization Fit.” Academy of Manage- ment Journal 34 (1991), pp. 487–516; and Tsui, A.S.; Z. Zhang; W. Hui; K.R. Xin; and J.B. Wu. “Unpacking the Rela- tionship between CEO Leadership Behavior and Organizational Culture.” The Leader- ship Quarterly 17 (2006), pp. 113–37.
16.5 O’Reilly, C.A., and J.A. Chatman. “Cul- ture as Social Control: Corporations, Cults, and Commitment.” In Research in Organiza- tional Behavior, Vol.
18, ed. B.M. Staw and L.L. Cummings. Stam- ford, CT: JAI Press, 1996, pp. 157–200.
16.6 Chatman, J.A. “Matching People and Organizations: Selec- tion and Socialization in Public Accounting Firms.” Administrative Science Quarterly 36 (1991), pp. 459–84.
16.7 Source: Colvin, G. “Q1A: Whole Foods’ Other CEO on Organic Growth.” Fortune, May 20, 2013, pp. 128–32.
16.8 Trice, H.M., and J.M. Beyer. The Cultures of Work Organizations. Englewood Cliffs, NJ: Prentice Hall, 1993.
16.9 Rowley, I. “What Put Honda in the Passing Lane.” BusinessWeek, October 19, 2009, pp. 57–58.
16.10 Source: Nicolas, S. “The Way We Do
E N D N OT E S
Symbols Think about the logo and images associated with your university. What message do they convey about the university’s culture?
Physical structures Think about the most visible physical structures on campus. What do those structures say about your university’s culture?
Language Think about the jargon, slang, slogans, and sayings associated with your university. What insights do they offer into the university’s culture?
Stories What anecdotes, accounts, legends, and myths are associated with your university? What messages do they convey about your university’s culture?
Rituals What are the daily or weekly routines that occur at your university, and what do they say about the culture?
Ceremonies What are the formal events and celebrations that occur at your univer- sity, and what cultural signals do they convey?
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Things Around Here.” Director, March 2011, pp. 56–59.
16.11 Hempel, J. “Bring- ing Design to Blue Chips.” Fortune, November 12, 2007, p. 32; and Stibbe, M. “Mothers of Inven- tion.” Director 55 (2002), pp. 64–68.
16.12 Vance, A. “Netflix, Reed Hastings Survives Missteps to Join Silicon Valley’s Elite.” Bloomberg Businessweek, May 9, 2013, http://www .businessweek.com/ articles/2013-05-09/ netflix-reed-hastings- survive-missteps-to- join-silicon-valleys-elite.
16.13 Source: 12 Kesling, B. “Say Goodbye to the Office Cubicle.” The Wall Street Journal, April 3, 2013, p. B1.
16.14 Rivlin, G. “The Prob- lem with Microsoft.” Fortune, April 11, 2011, pp. 45–51.
16.15 Shuit, D.P. “Yum Does a 360.” Workforce Man- agement, April 2005, pp. 59–60.
16.16 Berfield, S. “Howard Schultz versus Howard Schultz.” BusinessWeek, August 17, 2009, pp. 28–33.
16.17 Source: Birk, S. “Creating a Culture of Safety: Why CEO’s Hold the Key to Improved Outcomes.” Healthcare Executive, March/April 2009, pp. 15–22.
16.18 Martin, S. “Stories About Values and Valuable Stories: A
Field Experiment of The Power of Narratives to Shape Newcomers’ Actions.” Academy of Manage- ment Journal 59 (2016), pp. 1707–24.
16.19 Bailey, S. “Benefits on Tap.” Bloomberg Businessweek, March 21, 2011, p. 1.
16.20 Source: Kaihla, P. “Best Kept Secrets of the World’s Best Companies.” Business 2.0 (2006), pp. 82-87.
16.21 Source: Wehrum, K. “Hello Conference Room A!: An Office Where Employees Rock,” Inc. 32 (2010), pp. 115-16
16.22 Source: Bryant, A. The Corner Office. Indispensable and Unex- pected Lessons from CEOs on How to Lead and Succeed. New York: Times Books, 2011.
16.23 Lev-Ram, M. “Wel- come to the Twitter- loin.” Fortune, March 15, 2015, pp. 120–22.
16.24 Source: Gallagher, L. “Why Employees Love Marriott.” Fortune, March 15, 2015, pp. 112-18.
16.25 Kowitt, B. “Inside Trader Joe’s.” Fortune, September 6, 2010, pp. 86–96.
16.26 Schein, E.H. “Orga- nizational Culture.” American Psychologist 45 (1990), pp. 109–19.
16.27 Source: Schein, E.H. Organizational Culture and Leadership. San Francisco: Jossey- Bass, 2004.
16.28 Schein, E.H. “What Is Culture?” In Refram- ing Organizational Culture, ed. P.J. Frost, L.F. Moore, M.R. Louis, C.C. Lundberg, and J. Martin. Beverly Hills, CA: Sage, 1991, pp. 243–53.
16.29 Goffee, R., and G. Jones. The Character of a Corporation. New York: Harper Busi- ness, 1998.
16.30 Ibid.
16.31 Central Intelligence Agency. The CIA World Fact Book 2013. Washington, DC: Skyhorse, 2013.
16.32 Hong, Y.; H. Liao; J. Hu; and K. Jiang. “Missing Link in the Service Profit Chain: A Meta- Analytic Review of the Antecedents, Consequences, and Moderators of Service Climate.” Journal of Applied Psychology 98 (2013), pp. 237–67; Walumba, F.O.; C.A. Hartnell; and A. Oke. “Servant Leadership, Procedural Justice Cli- mate, Service Climate, Employee Attitudes, and Organizational Citizenship Behavior: A Cross-level Inves- tigation.” Journal of Applied Psychology 95 (2010), pp. 517–29; and Schneider, B.; D.E. Bowen; M.G. Ehrhart; and K.M. Holcombe. “The Climate for Service: Evolution of a Con- struct.” In Handbook of Organizational Cul- ture and Climate, ed. N.M. Ashkanasy, C.
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Wilderom, and M.F. Peterson. Thousand Oaks, CA, Sage, 2000, pp. 21–36.
16.33 Hong et al., “Missing Link in the Service Profit Chain”; and Schneider, B.; M.G. Ehrhart; D.M. Mayer; J.L. Saltz; and K. Niles-Jolly. “Under- standing Organization– Customer Links in Service Settings.” Academy of Manage- ment Journal 48 (2005), pp. 1017–32.
16.34 du Gay, P., and G. Sala- man. “The Cult(ure) of the Customer.” In Stra- tegic Human Resource Management, ed. C. Mabey, G. Salaman, and J. Storey. London: Sage, 1998, pp. 58–67.
16.35 Anonymous. “World’s Most Admired Com- panies 2017.” Fortune (accessed May 1, 2017): http://fortune .com/worlds-most- admired-companies/ list
16.36 McGregor, J. “USAA’s Battle Plan.” Bloomberg Businessweek, March 1, 2010, pp. 40–44.
16.37 Grizzle, J.W.; A.R. Zablah; T.J. Brown; J.C. Mowen; and J.M. Lee. “Employee– Customer Orientation in Context: How the Environment Moder- ates the Influence of Customer Orientation on Performance Outcomes.” Journal of Applied Psychology 94 (2009), pp. 1227–42.
16.38 Bureau of Labor Statistics. “Workplace
Injuries and Illnesses in 2015,” 2016, http:// www.bls.gov/news .release/pdf/osh.pdf.
16.39 Zohar, D., and G. Luria. “Climate as a Social-Cognitive Construction of Supervisory Safety Practices: Scripts as a Proxy of Behavior Patterns.” Journal of Applied Psychology 89 (2004), pp. 322–33.
16.40 Hofmann, D.A.; F.P. Morgeson; and S.J. Gerras. “Climate as a Moderator of the Relationship between Leader-Member Exchange and Content Specific Citizenship: Safety Climate as an Exemplar.” Journal of Applied Psychology 88 (2003), pp. 170–78.
16.41 Katz-Navon, T.; E. Naveh; and Z. Stern. “Safety Cli- mate in Healthcare Organizations: A Multi-Dimensional Approach.” Academy of Management Journal 48 (2005), pp. 1075–89.
16.42 Gilbert, D., and R. Gold. “As Big Drillers Move In, Safety Goes Up.” The Wall Street Journal, April 1, 2013, p. A1.
16.43 Clarke, S. “Perceptions of Organizational Safety: Implications for the Development of Safety Culture.” Journal of Organiza- tional Behavior 20 (1999), pp. 185–98.
16.44 Beus, J.M.; S.C. Payne; M.E. Bergman; and W. Arthur Jr. “Safety
Climate and Injuries: An Examination of Theoretical and Empiri- cal Relationships.” Journal of Applied Psy- chology 95 (2010), pp. 713–27; and Christian, M.S.; J.C. Bradley; J.C. Wallace; and M.J. Burke. “Workplace Safety: A Meta- Analysis of the Roles of Person and Situation Factors.” Journal of Applied Psychology 94 (2009), pp. 1103–27.
16.45 Fairchild, C. “Solving Tech’s Diversity Problem—Starting at the Top.” Fortune, March 15, 2015, pp. 126–27.
16.46 Source: Pamela Bab- cock, “What CEO’s Think about Diversity,” shrm.org (Society for Human Resource Man- agement) October 3, 2011.
16.47 Source: Bensinger, G. “Embattled Uber Promisess Changes in Corporate Culture.” The Wall Street Jour- nal, Mar. 22, 2017.
16.48 Sacks, D. “Creative Conversation—Rose Marcario.” Fast Com- pany, February 2015, pp. 34–36.
16.49 Paumgarten, N. “Wild Man.” The New Yorker, September 19, 2016, pp. 62–73.
16.50 Mangalindan, J.P. “A Healthier, More Rewarding Work- place.” Fortune, Octo- ber 6, 2014, pp. 49–50.
16.51 McLean, L.D. “Orga- nizational Culture’s
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Influence on Creativ- ity and Innovation: A Review of the Litera- ture and Implications for Human Resource Development.” Advances in Developing Human Resources 7 (2005), pp. 226–46.
16.52 Mattioli, D., and K. Maher. “At 3M, Innovation Comes in Tweaks and Snips.” The Wall Street Jour- nal (online), March 1, 2010.
16.53 Lev-Ram, M. “If I Ran The Circus.” Fortune, March 1, 2017, pp. 132–42.
16.54 Colvin, G. “Personal Bests.” Fortune, March 15, 2015, pp. 106–10; and Tkaczyk, C. “No. 20, SAS; Offer Afford- able (Awesome) Day Care.” Fortune, August 17, 2009, p. 26.
16.55 O’Reilly, C.A. “Cor- porations, Culture, and Commitment: Motivation and Social Control in Organiza- tions.” California Management Review 31 (1989), pp. 9–25.
16.56 Source: Glazer, E. “Well Fargo Digs Deeper Into Its Cul- ture Issues.” The Wall Street Journal, March 21, 2017.
16.57 O’Reilly et al., “People and Organizational Culture.”
16.58 Schein, E.H. “Three Cultures of Manage- ment: The Key to Organizational Learning.” Sloan Management Review 38 (1996), pp. 9–20.
16.59 Egan, T.M. “The Rel- evance of Organiza- tional Subculture for Motivation to Transfer Learning.” Human Resource Development Quarterly 19 (2008), pp. 299–322; and Boisner, A., and J. Chatman. “The Role of Subcultures in Agile Organizations.” In Leading and Managing People in Dynamic Organiza- tions, ed. R. Petersen and E. Mannix. Mah- wah, NJ: Erlbaum, 2003.
16.60 See Howard-Grenville, J.A. “Inside the ‘BLACK BOX’: How Organizational Cul- ture and Subcultures Inform Interpreta- tions and Actions on Environmental Issues.” Organization & Environment 19 (2006), pp. 46–73; and Jermier, J.; J. Slocum; L. Fry; and J. Gaines. “Organiza- tional Subcultures in a Soft Bureaucracy: Resistance behind the Myth and Façade of an Official Culture.” Organizational Science 2 (1991), pp. 170–94.
16.61 Steffy, L. “Whata- battle!” Texas Monthly (online), September 2015.
16.62 Schneider, B.; H.W. Goldstein; and D.B. Smith. “The ASA Framework: An Update.” Personnel Psychology 48 (1995), pp. 747–73; and Swider, B., R. Zim- merman, and M. Bar- rick. “Searching for
the Right Fit: Devel- opment of Applicant Person–Organization Fit Perceptions Dur- ing the Recruitment Process.” Journal of Applied Psychology 100 (2015), pp. 880–93.
16.63 Graf, A.B. “Building Corporate Cultures.” Chief Executive, March 2005, p. 18.
16.64 Foust, D. “Where Headhunters Fear to Tread.” BusinessWeek, September 14, 2009, pp. 42–44.
16.65 For good summaries of socialization, see Fisher, C.D. “Organi- zational Socialization: An Integrative View.” Research in Personnel and Human Resource Management 4 (1986), pp. 101–45; and Bauer, T.N.; E.W. Morrison; and R.R. Callister. “Organizational Social- ization: A Review and Directions for Future Research.” In Research in Personnel and Human Resource Management, Vol. 16, ed. G.R. Ferris. Green- wich, CT: JAI Press, 1998, pp. 149–214.
16.66 Cable, D.M.; L. Aiman-Smith; P.W. Mulvey; and J.R. Edwards. “The Sources and Accuracy of Job Applicants’ Beliefs about Orga- nizational Culture.” Academy of Manage- ment Journal 43 (2000), pp. 1076–85; and Louis, M.R. “Surprise and Sense- Making: What New- comers Experience in
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Entering Unfamiliar Organizational Set- tings.” Administrative Science Quarterly 25 (1980), pp. 226–51.
16.67 Chao, G.T.; A. O’Leary-Kelly; S. Wolf; H.J. Klein; and P.D. Gardner. “Organi- zational Socialization: Its Content and Con- sequences.” Journal of Applied Psychology 79 (1994), pp. 450–63.
16.68 Ibid.; Klein, H., and N. Weaver. “The Effectiveness of an Organizational-Level Orientation Train- ing Program in the Socialization of New Hires.” Personnel Psychology, Spring 2000, pp. 47–66; and Wesson, M.J., and C.I. Gogus. “Shaking Hands with a Com- puter: An Examina- tion of Two Methods of Organizational Newcomer Orienta- tion.” Journal of Applied Psychology 90 (2005), pp. 1018–26.
16.69 Gravelle, M. “The Five Most Common Hiring Mistakes and How to Avoid Them.” The Canadian Manager 29 (2004), pp. 11–13.
16.70 Van Maanen, J., and E.H. Schein. “Toward a Theory of Organiza- tional Socialization.” Research in Organi- zational Behavior 1 (1979), pp. 209–64.
16.71 Ashford, S.J., and J.S. Black. “Proactivity during Organizational Entry: The Role of Desire for Control.”
Journal of Applied Psychology 81 (1996), pp. 199–214; and Kim, T.; D.M. Cable; and S. Kim. “Socialization Tactics, Employee Proactivity, and Person–Organization Fit.” Journal of Applied Psychology 90 (2005), pp. 232–41.
16.72 Lublin, J. “The Telltale Sign a New Hire Isn’t Fitting In.” The Wall Street Journal, January 10, 2017: https://www .wsj.com/articles/ email-can-reveal- how-well-new-hires- fit-in-1484060400; and Srivastava, S., A. Goldberg, V. G. Manian, and C. Potts. “Enculturation Trajec- tories: Language, Cul- tural Adaptation, and Individual Outcomes in Organizations.” Management Science, forthcoming: http:// pubsonline.informs .org/doi/10.1287/ mnsc.2016.2671.
16.73 Mourier, P., and M. Smith. Conquer- ing Organizational Change: How to Suc- ceed Where Most Com- panies Fail. Atlanta: CEP Press, 2001.
16.74 Source: Higgins, T. “Mary Barra, the Con- tender: GM’s Next CEO May Not Be a Car Guy.” Bloomberg Businessweek, June 13, 2013, http://www .businessweek.com/ articles/2013-06-13/ mary-barra-the- contender-gms-next-ceo- may-not-be-a-car-guy.
16.75 Schein, Organiza- tion Culture and Leadership.
16.76 Hartnell, C., A.J. Kinicki, L. Lambert, M. Fugate, and P. Corner. “Do Simi- larities or Differences Between CEO Leader- ship and Organiza- tional Culture Have a More Positive Effect on Firm Performance? A Test of Competing Predictions.” Journal of Applied Psychol- ogy 101 (2016), pp. 846–61.
16.77 Gubbins, E. “Nortel’s New Execs Bring Cisco Experience.” Telephony, April 11, 2005, pp. 14–15.
16.78 Source: Glazer, E.; J.S. Lublin; and D. Mattioli. “Penney Backfires on Ack- man.” The Wall Street Journal, April 10, 2013, p.B1.
16.79 Weber, Y. “Measuring Cultural Fit in Merg- ers and Acquisitions.” In Handbook of Organizational Culture and Climate, ed. N.M. Ashkanasy, C. Wilderom, and M.F. Peterson. Thousand Oaks, CA; Sage, pp. 309–20.
16.80 Source: Foust, D. “Pulling Delta Out of a Nosedive.” Business- Week, May 25, 2009, pp.36-37.
16.81 Stahl, G.K., and M.E. Mendenhall. Merg- ers and Acquisitions: Managing Culture and Human Resources.
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Stanford, CA: Stanford University Press, 2005.
16.82 Foust, D.; J. Ewing; and G. Smith. “Looks Like a Beer Brawl.” BusinessWeek, July 28, 2008, p. 52.
16.83 Gibson, R. “Package Deal: UPS’s Purchase of Mail Boxes Etc. Looked Great on Paper. Then Came the Culture Clash.” The Wall Street Journal, May 8, 2006, p. R13.
16.84 Jana, R. “Putting the i into HiP.” Business- Week, November 26, 2007, p. 10.
16.85 Gillenwater, P., and T. Walton. “Bee Culture.” Mergers and Acquis- tions 46 (2011), p. 38.
16.86 Hartnell, C.A.; A.Y. Ou; and A. Kinicki. “Organizational Cul- ture and Organizational Effectiveness: A Meta- Analytic Investigation of the Competing Values Framework’s Theoretical Sup- positions.” Journal of Applied Psychology 96 (2011), pp. 677–94.
16.87 Safian, R. “Put Your Values To Work.” Fast Company, May 2017, pp. 50–59.
16.88 Arthur, W., Jr.; S.T. Bell; A.J. Villado; and D. Doverspike. “The Use of Person–Organization Fit in Employment Decision Making: An Assessment of Its Criterion-Related Validity.” Journal of Applied Psychology 91 (2007), pp. 786–801; and Kristof-Brown,
A.L.; R.D. Zimmer- man; and E.C. John- son, “Consequences of Individuals’ Fit at Work: A Meta-Analysis of Person–Job, Person–Organization, Person–Group, and Person–Supervisor Fit,” Personnel Psychol- ogy 58 (2005), pp. 281–342.
16.89 Barber, A.E. Recruit- ing Employees: Individ- ual and Organizational Perspectives. Thousand Oaks, CA: Sage, 1998.
16.90 Wanous, J.P. Orga- nizational Entry: Recruitment, Selec- tion, Orientation and Socialization of New- comers. Reading, MA: Addison-Wesley, 1992.
16.91 Source: Gerdes, L. “The Best Places to Launch a Career.” BusinessWeek, Septem- ber 14, 2009, 32-39.
16.92 Anderson, N.R.; N.A. Cunningham-Snell; and J. Haigh. “Induction Training as Socializa- tion: Current Practice and Attitudes to Evalu- ation in British Organi- zations.” International Journal of Selection and Assessment 4 (1996), pp. 169–83.
16.93 Wesson and Gogus, “Shaking Hands with a Computer.”
16.94 Ibid.; and Klein and Weaver, “The Effectiveness.”
16.95 Source: Gallagher, L. “The Education of Airbnb’s Brian Chesky.” Fortune, July 26, 2015, pp. 92-100.
16.96 Source: Gunther, M. “Nothing Blue about This Airline.” Fortune, September 14, 2009, pp. 114-18.
16.97 Wanberg, C.R.; E.T. Welsh; and S.A. Hezlett. “Mentor- ing Research: A Review and Dynamic Process Model.” Research in Person- nel and Human Resources Manage- ment 22 (2003), pp. 39–124.
16.98 Allen, T.D.; L.T. Eby; M.L. Poteet; E. Lentz; and L. Lima. “Outcomes Associ- ated with Mentoring Protégés: A Meta- Analysis.” Journal of Applied Psychology 89 (2004), pp. 127–36.
16.99 Kranz, G. “More Firms Paying Mind to Mentoring.” Work- force Management, January 2010, p. 10.
16.100 Kessler, S. “How to Start a Mentoring Program.” Inc., April 6, 2010, http:// www.inc.com/ guides/2010/04/ start-mentoring- program.html.
16.101 Ibid.
16.102 Fuhrmans, V. “Hiring Veterans Is Easy. Keeping Them Is Hard.” The Wall Street Journal (online), March 28, 2017.
16.103 Kaplan, D.A. “Mars Incorporated: A Pretty Sweet Place to Work.” Fortune, February 4, 2013, pp. 72–82.
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Reenergizing Employees After a Downsizing1C A S E
Integrative Cases
L E A R N I N G G OA L S This case will help you learn to evaluate and manage the con- sequences of significant organizational changes, like downsiz- ing. As the managing editor of a small newspaper, you’ll be assisting the editor as she grapples with the consequences of a recent layoff. The case will touch on both the immediate after- math of the downsizing and also on how work will need to be structured and reorganized going forward. After reading the case, you’ll prepare a report for your editor that will lay out the pluses and minuses of a number of potential action steps for reenergizing the paper’s staff.
K E Y W O R D S C O V E R E D
• Task performance • Affective commitment • Job characteristics theory • Equity theory • Psychological empowerment • Informational justice • Big Five • Restructuring
T H E S I T UAT I O N Andrea Zuckerman had been dreading this day for some time. As the editor in chief of the Blaze, she had been aware of the impending downsizing for some time. But the Blaze is just a small, college-town newspaper—owned by a large national conglomerate. So she had to hold her tongue while the corpo- rate wheels turned. She didn’t agree with how the consultants hired by corporate had determined who would go, which was largely determined by who had the highest salaries. And she didn’t agree with how the news was being delivered—not by her, but by a consultant who would be a complete stranger to all involved. “They’re taking away our wisest,” she noted, “and they’re taking away those folks’ dignity for good measure.”
Not that Andrea could argue with the reasons behind the downsizing. She was, after all, working in a dying industry. Every newspaper, from The New York Times and Washington Post down to the smallest rag in the smallest town, had a sliver of the readership of a decade ago. First it was 24-hour cable news, then the Internet, then smartphones. Each made news- papers less central to the current events consumption of the folks in a given town. Corporate had tried to stay ahead of these trends when they bought the Blaze, an event that had been marked by a smaller round of downsizing as costs were cut, the paper was scaled back, and Tuesday and Wednesday deliveries were ended. But there had been hope associated with those changes, with everyone assuming that corporate resources could help the Blaze reinvent itself and leverage new technologies to stay relevant.
This time around, the Blaze is confronting a “new normal.” Its function moving forward will be to serve as a local por- tal to the broader news resources offered by corporate. When folks in town log on to the Blaze using either their web browser or their smartphone or tablet app, they’ll see a combination of local stories written by Blaze staff and national and world stories authored by staff at other papers under the corporate umbrella. Eventually, the print version of the paper will be a weekend-only phenomenon, and even that will almost certainly end at some point. All these changes mean that the paper will need fewer reporters, photographers, artists, and section edi- tors, not to mention fewer assistants. There may also need to be some restructuring and merging of assignments and duties.
But that’s getting ahead of things a bit. The first item that Andrea wants to discuss in her meeting with you is what to say to the staff at the morning briefing. As the survivors of a lay- off that’s being poorly handled, it’ll be on her to restore some semblance of morale. After all, the last thing the paper needs is its remaining staff giving two weeks’ notice. In fact, they’re going to need to be more committed than ever because more is going to be asked of them than when they were hired. She’ll have to be somewhat careful with this speech, of course, as the HR person installed by corporate—Jessie Vasquez—will no doubt remind her. Jessie is good at his job in many ways, even if Andrea complains about his general level of risk aversion.
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Jessie’s primary concerns will revolve around Andrea saying something that could either trigger a wrongful termination suit or be used as ammunition if such a suit is brought by a staffer against corporate.
The afternoon briefing is going to be more complicated. That’s where Andrea hopes to begin charting a course toward the “new normal” so that everyone understands what they’ll be in for. The rumor mill has already been working overtime, and many of the scenarios being floated might actually wind up being worse than the eventual status quo. So it’s important to begin discussing the future look of the Blaze quickly, to cre- ate some information to go along with the misinformation. Of course, Andrea doesn’t want to make decisions about that future course too quickly because nothing will undermine the staff’s confidence more than a collection of faulty ideas that gets revised a few months into its existence.
There are a lot of things to consider when contemplating the new operations of the Blaze. The paper has historically grouped its functions into five areas: state, city, sports, life- style, and business. It seems to Andrea that those five areas will need to get merged into two or three. The reporters, pho- tographers, artists, and editors in those areas will still perform the same duties; they’ll just do those duties for a broader range of content than they did before. But how to decide whom to group? Some groupings seem logical to Andrea, but it may be that the staff working in those areas would find other combina- tions more appealing. And it seems like the degree of “enlarge- ment” will vary a bit. Some staffers will be taking on just a little bit more, whereas others will be taking on a lot more. The paper will need both groups to perform their tasks, and perform them well.
Of course, there’s also the matter of who’s willing and able to shoulder a lot more rather than a little more. Andrea knows from experience that this can be a dicey issue. Some staffers excel at a narrowly defined set of duties but struggle once those duties are expanded. Others seem to lack any limit to what they can take on, at least in the short term. But how to tell one group from the other, aside from Andrea’s own hunches? Everyone at the Blaze filled out a bunch of assessments and inventories when corporate acquired the paper, and all that information should be in everyone’s personnel files. It may not offer definitive answers, but it’s a good bet that the informa- tion would offer at least some insights.
Asking some staffers to take on a lot more while others are asked to take on a little more could be a recipe for controversy. Indeed, Andrea’s already been getting complaints about the relative workloads across areas for years! In this regard, cor- porate might actually help for a change. It turns out that they tend to budget more for compensation-related expenditures in the wake of a downsizing. They’ve learned from experience that survivors sometimes need a bit of a bump to stay com- mitted, and they’ve also learned that “downsizees” occasion- ally need to be hired back, this time at the going rate for the job market. Corporate can justify such expenses because the downsizing still results in a cost savings, even with extra for
the survivors factored in. She’d have to check with Jessie, but Andrea suspects she could leverage those extra funds in a cre- ative way, to make the new pay structure match up with the new job structure.
Certainly there are a lot of moving parts to the kinds of restructuring that Andrea is contemplating. Although her role as editor in chief gives her the best “big-picture” sense of how all those parts look from 20,000 feet, it’s still not clear that she knows everything she needs to know (even with Jessie’s help). On the one hand, it might be helpful to involve the Blaze’s staff in the decision making as the future course of the paper gets charted. That would give them “buy-in” and ensure that all the bases are covered as a new structure takes shape. On the other hand, keeping reporters, photographers, artists, and editors on the same page is often like herding cats. What if she asks for suggestions and the staffers take off in completely different directions? Once the Pandora’s box of “input” is opened, it’s not clear that even Andrea could get it shut again.
Although the new day-to-day work of the Blaze staff is fore- most on Andrea’s mind, she can’t help but think of a bigger- picture issue that hangs over everything. Will the staffers still feel the same way about not just their jobs, but their vocations? It was hard enough when the Blaze was first acquired by cor- porate. Many of the staffers had been attracted to “Blaze 1.0” because it was a small-town operation. They could live in a charming place with a low cost of living, and could do their work the way they wanted to. The more corporate “Blaze 2.0” brought with it a certain degree of standardization, with corpo- rate imposing some common work practices that it had honed in other, mostly bigger papers. But still, at the end of the day, everyone was still in the newspaper business.
Even if a new structure works out, and even if the compen- sation issues get solved, the move to “Blaze 3.0” poses a more existential threat. Is everyone still in the newspaper business, or are they now in the web portal business? How much of their identity is wrapped up in the feeling of seeing someone read the paper at a coffee shop or pick it up off a doorstep? And what does it mean for the Blaze to focus only on local news, no longer being able to weigh in on world and national events, issues, trends, sports, and buzz? These issues hit home espe- cially deeply for Andrea. Not only was her father in the news- paper business, but her grandfather was as well. They used to joke that “ink was in their blood.” One day, there might not even be any ink.
Some motivational clichés could be sprinkled into the morning and afternoon briefings, of course. But Andrea’s never been the rah-rah type, and the pain of losing so many colleagues would likely cause such speechifying to fall on deaf ears. Maybe this is how encyclopedia salespeople felt, or type- writer manufacturers, once upon a time. Or maybe there’s something Andrea could do to retain some of the meaning and “romanticism” in what the Blaze does. The paper has always been so focused on the day-by-day, issue-by-issue pressures of the job. Maybe it’s missed some opportunities to do something larger for the town or the nearby campus.
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YO U R TAS K Your task is to prepare a report for Andrea that lays out some potential courses of action to follow at the morning and after- noon briefings, as well as moving forward as the new course for the Blaze is charted. Be sure to provide not just specific recommendations, but also some thoughts that support those recommendations so that Andrea understands your reasoning. In particular, your report should touch on the following points.
1. Drawing on discussions of informational justice, how should Andrea approach the morning briefing? Should she be honest and informative in explaining corporate actions in the downsizing, or should she be more guarded?
2. How could job characteristics theory guide Andrea as she considers ways of combining areas for the staffers? Is there a way to give the new versions of their jobs a higher satisfaction potential than the pre-downsizing versions?
3. Assuming the staffers’ personnel files have data on the Big Five, how could those data be used to inform the decisions
about combining areas? What would be the profile of someone who could take on a lot more versus someone who can take on only a little more?
4. What advice would you give to Andrea in terms of her use of the bigger compensation budget? Would you give every- one a short-term “retention bonus” or a more permanent raise? Or would you leverage those funds to support the changes in the work structure, especially for those staff- ers with an especially expanded workload? What would be the difficulties associated with those two options?
5. How much voice and input would you recommend Andrea give to the staffers as the Blaze transitions to its “new nor- mal”? What are the pluses of giving such input and what would be the dangers associated with it? How could those dangers be mitigated?
6. As you consider the broader challenges faced by the newspaper industry, what could Andrea do to maintain or restore the sense of meaning and significance that the Blaze staffers connect to their work?
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Managing Commitment in Demanding Jobs2C A S E
L E A R N I N G G OA L S This case will allow you to explore the challenges of managing critical employees who work in demanding jobs. As the lead management analyst employed by a holding company, you’re responsible for examining management practices at a newly acquired firm. More specifically, you’ll be looking into some problems related to the retention of key employees in this company. The search for the root causes of the acquisition’s problems will require consideration of several interrelated fac- tors having to do with the way the work, and the way people doing the work, are managed. After reading the case, you’ll prepare a report for your boss that describes your findings and recommendations.
K E Y W O R D S C O V E R E D
• Organizational commitment • Forced ranking • Transactional theory of stress • Stressors • Emotional intelligence • Team diversity • Cohesion • Groupthink
T H E S I T UAT I O N The Lorean Group, an international holding company, recently acquired a controlling interest in Tiger Advertising. This adver- tising agency, which employees 6,644 people worldwide, has been successful since its inception in 1964. Revenues over the past four years have been flat, however, and costs of running the business have been climbing steadily. Tiger was acquired in spite of this recent decline in profits because of its reputation in the industry and its extended list of loyal clients. Lorean has a history of turning around troubled acquisitions, and the belief is that Tiger can be saved as well.
The Lorean Group intends to let Tiger operate indepen- dently, though it seeks to understand the causes of the recent poor performance of the company. The Lorean Group recog- nizes that, although poor firm performance could be attributed to isolated incidents, most often there are systematic problems that require changes in practices and policies. You’re a man- agement analyst from Lorean, and your boss has given you the responsibility of analyzing the situation at Tiger and offer- ing recommendations that will improve the firm’s financial
performance and its long-term prospects. You travel to Tiger’s corporate headquarters and plan to spend four days meet- ing with people to gather information that will inform your recommendations.
Your first meeting with the Tiger top management team went fairly well. The first thing that struck you was this: Although the team members are quite different from each other in obvious ways, beneath the surface there is remark- able similarity. Of the seven members who compose this team, three have been with the company since its inception. The four newer members are much younger and came to the com- pany more recently in response to the firm’s rapid growth, due mostly to international expansion that occurred between 2002 and 2007. Despite the differences in age, company tenure, and their functional and industry backgrounds, the members of this team seem to be cut from the same cloth in that each is very businesslike, analytical, hard driving, and results-focused.
In your discussion regarding the company’s expansion, William Collins, one of the founders, remarked, “The expan- sion was tough for us because of all the pressure and uncer- tainty, and to be honest, we really didn’t jell together initially—I thought it was a big mistake to grow so fast and bring new peo- ple on board to manage this ship—but now we’re past all that, we’re very cohesive, and we share the same vision of how we do business. This is a good thing because when I retire in a couple of years, I’ll know the company’s in good hands.” Everyone in the room seemed to nod in agreement. Another founder, Russell “Rusty” Gee, then looked squarely into your eyes and added, “I’m not exactly sure what you’re looking to do here, but we’ve weathered lots of storms together. Yes, we’ve had a couple of rough years, but we’re more than capable of handling things ourselves—this was part of the deal, wasn’t it? We know this place better than anyone, so I can’t imagine we’ll seriously consider any recommendations that’ll upset the apple cart.” Rusty made the statement in a friendly way with a smile on his face, yet you could tell he was very serious.
Although you learned many things during that first meet- ing, two things stood out that suggested a real problem. First, turnover among creative team associates at Tiger is high: 35 percent each year for the last two years and 30 percent the year before that. The industry average is less than 20 percent, and it is even lower in the top firms. Creative team associates are vital to Tiger’s success, so this retention issue is a big problem. Because the company’s business model centers on advertising design rather than production or media services, creative team associates constitute the company’s technical core. Although the Tiger top management team seems aware of the problem, they seem to rationalize it. As Jamie Waggner, VP of human resources, noted, “We hire the best and the brightest, so it’s
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only natural that they occasionally get poached by other firms. We try our best to keep them, but during the last few years we haven’t had the ability to compete with the salaries they’re being offered elsewhere. Once things turn around for us, we’ll be able to solve the turnover issue.”
You also learned the company has been sued three times recently. The cases involved associates who were passed over for promotion and who claimed that the work environment was so filled with stress that it made them ill and unable to work. Although you were aware of the first case because it was highly publicized, apparently Tiger went to great lengths to settle the two subsequent cases quickly before anything was disclosed. The first case was settled out of court as well, but not before it became an embarrassment to the company and its principals. You could tell from the tone of the conversation that the management team members are proud that they pre- vented word of the other two lawsuits from getting out. Before you have a chance to ask the question of whether anyone believes the turnover and lawsuits are related, Jamie volunteers the following. “We were really unlucky during that period. We hired three associates who didn’t possess sufficient capabili- ties, and each had trouble coping in a way that would have led to better outcomes. Most everyone is drawn here because of the challenge inherent in the work that we do—we just have to do a better job in ruling out applicants who don’t fit.”
Your subsequent observations and discussions with the members of the creative teams did not reveal anything too far out of the norm as compared to other advertising agencies in terms of the immediate work context. Workload and time pres- sure are very high but not atypical for a large advertising agency. The creative teams typically include three to five associates and are led by a senior client manager, who makes final design decisions after receiving input from the members. Although in your initial meeting Jamie referred to the teams as being self- managed, the senior client managers function more like tra- ditional supervisors in that they assign specific tasks to each member during the projects. Because the support staff is kept to a minimum at the firm to keep costs down, associates also have to take care of a lot of the administrative duties. In return, however, the members of the creative teams get to work on some highly visible projects for some very well-known clients.
You also note that the creative teams have autonomy to work wherever and whenever they need to. This arrangement gives employees a lot of flexibility, and working odd hours in strange locations has resulted in some stories of which every- one in the company is familiar. As an example, you heard a story of a creative team dinner meeting in a private room at a local restaurant. When the restaurant closed, the senior client manager handed the owner $1,000 to let them stay and work, and the team stayed until the restaurant opened for lunch the next day. Although not everyone at the meeting was on-board with the idea initially, and in fact, one member had to leave because of a personal obligation, the team members came together and produced a very successful deliverable for one of the firm’s largest clients. The senior manager who revealed
this story did so with pride and remarked how it was a “fantas- tic team-building experience for those who chose to tough it out” and that it perfectly reflects the “company’s ‘work-hard, play-hard’ mentality.”
When you inquire about how the job performance of the creative associates is managed, you learn that toward the end of each calendar year, the senior client managers get together and spend an entire day on the evaluation process. The evalu- ations focus on the extent to which each associate contributed to the designs of the teams they worked on during the previous year. A list of all associates, ordered by their job performance scores, is generated. This list is then used to determine three categories, each of which is associated with some significant reward consequences. The top 10 percent get sizable bonuses, which typically amount to 50 percent of base pay, and are fast tracked to senior client manager. The next 30 percent get a 25 percent bonus and are considered “on-track” for promo- tion. The others get a small share of profit, but typically this amounts to 2 to 3 percent of their salary.
Bonus checks, and a letter explaining how the bonuses are distributed, are mailed to the associates’ residential addresses at the beginning of the winter holiday. When you inquire about why the company distributes performance feedback this way, Jamie told you the following: “The associates work in teams and so they’re understandably sensitive to differences in their bonuses. Although they’re intended to send strong signals to the associates, we avoid bad feelings and conflict. By the time they get back from the holiday, it’s not on their minds as much.”
You had lunch with several senior client managers to gain their perspective on the company. Although this meeting started off well, they became a little defensive when the subject of the turnover and lawsuits came up. One remarked, “Around here, you’re rewarded for paying your dues, for doing whatever it takes to deal with anything that gets thrown at you. Yes, it’s demanding, and it requires sacrifice, but how else can we find out whether people have what it takes? Those of us sitting at this table with you are a product of this and it works—look at how successful we’ve been. We just can’t tolerate hires who claim they can’t take it or that it’s abusive.”
You also met with a group of creative team associates, and for the first time, you’re exposed to a different perspective regarding what life is like at Tiger. As an example, one associ- ate said, “I learned a lot from dealing with the pressure at the beginning, but the work is nonstop. They say it’s ‘work-hard, play-hard,’ but even the play feels like work.” Another associ- ate chimed in, “The projects are great, but I never feel like I’m fully involved, I’m always on the periphery chipping in where I can.” As a final example, a third associate stated, “It’s defi- nitely sink-or-swim around here, that’s for sure. It’s easier for some people who get plugged-in with a manager right away, but I’ve never seemed to gain favor with any of them regardless of how many hours I put in. To top it off, the crazy hours are creating a lot of work–family conflict, and the strains are really adding up.”
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YO U R TAS K Your charge is to prepare a report for your boss that describes what you learned during your visit to Tiger. The report should begin with a description of Tiger Advertising and its current situation. The report should also describe the most important problems Tiger is confronted with, as well as the causes of those problems, in terms of OB concepts and theories. In your report, ensure you cover the following issues.
1. Describe the diversity that’s present in Tiger’s top man- agement team. Discuss how the team’s diversity likely affects its functioning and its effectiveness.
2. Describe signs that groupthink is present in Tiger’s top management team. In what ways is this groupthink prob- lematic? What can be done to overcome these problems?
3. Describe the primary sources of stress the creative associ- ates are experiencing. Explain how some of these stressors
have led to Tiger’s problems while others have led to its success.
4. What is the underlying general premise that senior client managers seem to have regarding the stressful demands at Tiger, and in what ways is this premise problematic?
5. Why are the perceptions of the managers and creative associates so different with respect to the nature of Tiger’s management practices and policies? What role could emotional intelligence play in ameliorating some of these differences?
6. Based on your analysis of Tiger, does the company need a minor “tune-up” in regard to its practices and poli- cies, or is a major overhaul in order? What three recom- mendations would most likely resolve Tiger’s problems with organizational commitment and potential future litigation?
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3C A S E
L E A R N I N G G OA L S This case will help you learn to develop an action plan and evaluate multiple competing objectives during a complicated organizational period: a company merger. As a co-manager and confidant of a project manager tasked with bringing effi- ciency and a vision to a newly merged hospital system, you will be providing mentoring advice on how to approach a deli- cate situation and one that is sure to upset some employees. After reading the case, you’ll prepare a memo that outlines your thoughts for how you would proceed as a leader tasked with creating a new culture that must come together quickly in order for the unit to survive.
K E Y W O R D S C O V E R E D
• Task performance • Affective commitment • Trust • Escalation of commitment • Leadership • Power • Matrix structure • Organizational culture
T H E S I T UAT I O N Sitting across the table, Colleen Brooks looked excited and yet discouraged at the same time. It seemed to be a strange com- bination of emotions, but it was a look you had come to rec- ognize over recent weeks among managers you had grown to admire over the last few years. Colleen spoke somewhat softly, “I’m just not sure what I’m supposed to do here. I’ve been put into this position where I feel I can really make a difference in a lot of ways, but I also feel like the deck has been stacked against me. These people just don’t trust us yet, and I’m not sure given the situation that I can blame them. It’s partially their fault, though! Had Medical One run its business well to begin with, there’s a good chance we wouldn’t be here.”
Medical One was the largest multispecialty health care prac- tice in the northwest part of the United States. It had numer- ous regional clinics across several hospitals in seven states and employed more than 13,000 employees and 900 physicians in addition to running its own insurance plan. In many ways, Medical One would seem to outsiders as a model health care provider. Internally, though, Medical One was in severe finan- cial distress. Cost overruns and bad planning had placed the
company under a great deal of debt. This debt allowed Health- care Plus, a much smaller (4,600 employees) but more finan- cially sound practice operating throughout Arizona and New Mexico, to acquire Medical One by taking over and restructur- ing its financial situation.
Although health care mergers and acquisitions were becoming more and more common—with 243 deals totaling $73.5 billion taking place in the second quarter of last year alone—it didn’t make the process any easier for those compa- nies involved. The merger between Healthcare Plus and Medi- cal One had many potential advantages but carried with it a certain amount of risk as well. There was great resentment among the employees of Medical One (some of whom had been with the company since its inception in 1992) that a smaller company could come along and just “purchase” them. Medi- cal One had grown quickly and was known in its area of the country for providing extremely high-quality health care ser- vices. Everything they had read or heard through the grapevine about Healthcare Plus was oriented around cost-cutting and to most employees at Medical One, lower costs equated to lower- quality health care.
Colleen was not happy about the way management had decided to restructure the two companies following the merger. In order to try to get the best out of both companies—namely, Medicare One’s customer service focus and Healthcare Plus’s efficiency and cost containment—the top management team had decided to create a matrix structure to operate under going forward. For the most part, managers at Medical One would continue to report to the same functional directors they had before. However, each manager would now report and answer to another director as well. The “new” directors were supposed to be region-based efficiency experts. Colleen, who had been a highly successful manager of nursing in one of the largest Healthcare Plus clinics in Santa Fe, New Mexico, had been tapped as a new “Regional Director of Nursing Efficiency.” “What a miserable job title!” Colleen thought when she origi- nally heard the news. At the same time, this was a big promo- tion for her and the change would be very positive in many ways for her and her family.
Colleen’s job was to oversee nursing operations in four states—New Mexico, Colorado, Utah, and Wyoming. Of the 14 nursing managers she was supposed to supervise, 11 of them were at Medical One facilities. (The company decided not to change the “Medical One” name after the merger for marketing and continued branding purposes.) Fundamentally, Colleen knew that the reasoning behind the new structure was to blend Healthcare Plus’s management style and expertise with Medical One’s scale of operations. Although upper management was trying to sell the acquisition to everyone inside the organization
Leading in a Hostile Environment
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as a “merger” of two great companies, almost all of top man- agement came from Healthcare Plus.
Colleen had decided that the first meeting with her new managers was an important one, and she decided to bring them all to Denver, which was a relatively central location but also where one of Medical One’s largest hospitals oper- ated. She took great care in personally phoning each manager, introducing herself, and letting the manager know that she was looking forward to working with them. Some of those manag- ers were quiet and hesitant over the phone, but some seemed very open and receptive—even excited—about the possibility of working together to make things better. Sarah Stoneford, a nursing manager in Cheyenne, Wyoming, even told her that she had been waiting for something like this to happen because “the amount of waste I see around here on a daily basis would make anyone cringe in disbelief.”
In order to make everyone feel more equal, Colleen had arranged for the meeting to take place in a Denver hotel. Having the meeting in the Denver hospital just seemed too constricting somehow—she wanted everyone to keep as open a mind as pos- sible. Plus, Jim Liucci, the nursing manager at the Denver hospi- tal, had already shared that his nursing director was not excited about the changes that were coming, and Colleen wanted him to feel comfortable in speaking to the group and not looking over his shoulder. While on the phone call with Jim, Colleen thought, “His operational director doesn’t even know what changes are coming! How can she be upset about things that haven’t even happened yet?” but she didn’t want to say anything until she and Jim had the opportunity to meet in person.
Initially, getting together with everyone went extremely smoothly. All 14 managers had arrived on time the night before, and some had even eaten dinner together and hung out in the hotel bar getting to know one another better. Even though 11 of the managers had worked for Medical One, even occupying the same jobs, they had actually never met one another before. Colleen was pleasantly surprised to see all of them having a good time and being excited about meeting one another. When she laid her head on her pillow that night, Colleen thought to herself, “These people are thirsty for change! They recognize that Medical One has issues that need to be addressed and it’s simply my goal to push them in the right direction toward accomplishing our objectives.”
The next morning didn’t go nearly as well. Every time Colleen mentioned a potential idea that had reduced costs effectively at Healthcare Plus, it was met with a “that will never work here” type of answer. After several rounds of this, Colleen’s frustration seemed to mount. When the Healthcare Plus managers tried to chime in with evidence that these types of procedures had worked for them in their facility, the Medi- cal One managers seemed to form ranks. It wasn’t until it was too late that Colleen noticed the three Healthcare Plus man- agers were all sitting together at the large U-shaped table, a seating arrangement that didn’t seem to be helping things. At one point, Donna Mitchell, a Medical One nursing manager in from Provo, Utah, even went as far as to say, “I know that kind
of stuff might work in New Mexico, but our patients expect a better level of care.” Todd Rappen, a manager in Grand Junc- tion, Colorado, was even bold enough to comment that if cost savings were such a big deal, why was the group paying to rent a hotel meeting room instead of using one of the Denver hospi- tal’s conference rooms? Colleen knew at that point that things had gone terribly wrong.
Although it was clear to Colleen that many of the managers were resistant to the ideas she discussed throughout the day, most of them placed the blame on their local nursing direc- tors for their unwillingness to change. This allowed her new reports to be able to nod their heads in agreement personally, but introduce negative opinions without fear of recrimination. As the meeting closed, Colleen tried to assure the group that this was just the first step of many on a long road to making a successful situation for everyone. She tried to set an upbeat tone, but it was clear that many people had been upset by some of the things that were said during the meeting. There was defi- nitely an “us vs. them” mentality as everyone left the room to catch flights or hop in their cars.
Colleen had just now begun to grasp the realities of not being in a location with her direct reports. There were many new things she would have to get used to—managing manag- ers, managing remote individuals, managing people who also report directly to other managers they were more familiar with at their location—in essence, her job was to lead with seem- ingly very little power. What she wouldn’t have to get used to, though, was upper management expecting her to make changes at these locations that would create bottom-line results in a short period of time. The good thing is that she had lots of experience doing just that. “I know that we have made many excellent changes at Healthcare Plus without sacrificing patient care—I just have to get others to open up to that idea,” Colleen thought on the plane ride home.
As you listen to Colleen, it becomes apparent to you that she is beginning to question her ability to be able to do this new job effectively. Although you have been in leadership development training programs together, the fact is that leader- ship is much easier when things are going well for a company. Although there are many potential areas of improvement for the new company going forward, it’s clear the road is going to be difficult. Colleen’s voice suddenly lowered as she started to pack up her things, “Look, I asked you here today to be a sounding board of sorts, but the truth is I could really use your advice. I don’t need an answer right now, but if you could give me your thoughts on things I could do to be a better leader at this point I would appreciate it. You’ve always given me good advice in the past.”
YO U R TAS K Your task as a leadership mentor to Colleen is to prepare a memo that lays out your thoughts on her situation and some specific courses of action she should consider as she attempts to start leading her new group. Make sure to give her a memo
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with enough detail so that she understands the reasoning behind your recommendations. Also keep in mind the order in which she should follow these steps. In particular, your memo should touch on the following points.
1. Drawing on what you know about leadership, what types of behaviors are going to be most important for Colleen as she begins to interact with her new direct reports. Should these behaviors change over time?
2. What kinds of power can Colleen use to try to influence others to adopt some efficiency related procedures? Are there certain types of influence behaviors that will be more effective than others given the difficult circumstances?
3. It’s clear that the two companies have very different cul- tures even though they are both health care providers.
Should one culture be stressed over the other? Will this affect the way Colleen should lead the group?
4. What does Colleen have going for her in terms of getting others to trust her? Are there certain things she should do or say to generate that trust as well as maintain it over time?
5. How does the new structure affect Colleen’s ability to lead? It would be useful to detail some of the pros and cons Colleen will likely face given how things have been organized.
6. Should Colleen focus more on her direct reports’ perfor- mance or organizational commitment? Will she exhibit different behaviors based on that choice? What are the advantages to focusing on one or the other?
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Glossary/Subject Index
Note: Bold page numbers indicate glossary terms that are highlighted in the text.
360-degree feedback A performance evaluation system that uses ratings provided by supervisors, coworkers, subordinates, customers, and the employees themselves. 48
A Ability, 304–334 Relatively stable capabilities of people for performing a particular range of related activities. 200, 306
in cognition-based trust, 200 cognitive. See Cognitive abilities emotional. See Emotional ability in hiring process, 323–326 importance of, 321–323 in integrative model of OB, 9, 321–323 meaning of, 306–307, 307, 320–321 physical, 306, 318–321, 352–353 team member, 352–353
Ability to focus The degree to which employees can devote their attention to work. 217–218
Absenteeism, 72–73, 142, 206
Abuse Employee assault or endangerment from which physical and psychological injuries may occur. 42
Abusive supervision The sustained display of hostile verbal and nonverbal behaviors on the part of supervisors, excluding physical contact. 206
Accommodating A conflict resolution style by which one party gives in to the other and acts in a completely unselfish way. 424, 425
Accomplishment striving A strong desire to accomplish task-related goals as a means of expressing one’s personality. 270
Action learning Team process training in which a team has the opportunity to work on an actual problem within the organization. 396
Action processes Teamwork processes, such as helping and coordination, that aid in the accomplishment of teamwork as the work is actually taking place. 384
Action teams A team of limited duration that performs complex tasks in contexts that tend to be highly visible and challenging. 340, 342
Activation The degree to which moods are aroused and active, as opposed to unaroused and inactive. 106
Active management-by-exception When the leader arranges to monitor mistakes and errors actively and takes corrective action when required. 457, 458
Adaptability
adaptive task performance, 32 behaviors involved in, 33 in socialization process, 522–523
Adaptive task performance Thoughtful responses by an employee to unique or unusual task demands. 32
Additive tasks Tasks for which the contributions from every member add up to determine team performance. 353
Adjourning The final stage of team development, during which members experience anxiety and other emotions as they disengage and ultimately separate from the team. 344
Affect-based trust Trust that depends on feelings toward the authority that go beyond rational assessment. 197, 198, 201–202
Affect management, 385
Affective commitment An employee’s desire to remain a member of an organization due to a feeling of emotional attachment. 63–64
assessing, 66 job satisfaction and, 111 Leading in a Hostile Environment (case),
546–548 Reenergizing Employees After a Downsizing
(case), 540–542 strategies to improve, 65–66
Affective events theory A theory that describes how workplace events can generate emotional reactions that impact work behaviors. 108
African Americans
diversity of workforce, 75–77 relative compensation of, 205
Aggression
aggressor role, 352 personal, 42
Agreeableness One of the “Big Five” dimensions of personality reflecting traits like being kind, cooperative, sympathetic, helpful, courteous, and warm. 266, 267, 271, 353, 355–356
All channel network structure, 388
Alternative dispute resolution A process by which two parties resolve conflicts through the use of a specially trained, neutral third party. 431–432
Ambassador activities Boundary-spanning activities that are intended to protect the team, persuade others to support the team, or obtain important resources for the team. 381–382
Analytics The use of data (rather than just opinions) to guide decision making. 20
Anchoring bias, 248
Anticipatory stage A stage of socialization that begins as soon as a potential employee develops an image of what it would be like to work for a company. 521–522
Apathetics Employees with low commitment levels and low task performance levels who exert the minimum amount of effort needed to keep their jobs. 70
Apparent sincerity, 421
Apprising An influence tactic in which the requestor clearly explains why performing the request will benefit the target personally. 418, 419
Arbitration A process by which a third party determines a binding settlement to a dispute between two parties. 432
ASA framework A theory (attraction– selection–attrition) that states that employees will be drawn to organizations with cultures that match their personality, organizations will select employees that match, and employees will leave or be forced out when they are not a good fit. 520
Asians, diversity of workforce, 75–77
Assessment. See Organizational Behavior (OB) Assessments
Attraction-selection-attrition (ASA) framework, 520
Auditory attention, 319, 320
Autocratic style A leadership style where the leader makes the decision alone without asking for opinions or suggestions of the employees in the work unit. 447–448, 449–450
Autonomy The degree to which a job allows individual freedom and discretion regarding how the work is to be done. 102
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Availability bias The tendency for people to base their judgments on information that is easier to recall. 247–249
Avoiding A conflict resolution style by which one party wants to remain neutral, stay away from conflict, or postpone the conflict to gather information or let things cool down. 424, 425
B Baby Boomers, 77
Bargaining The third stage of the negotiation process, during which each party gives and takes to arrive at an agreement. 428
distributive, 426 integrative, 426–427
Basic underlying assumptions The ingrained beliefs and philosophies of employees. 511, 514
BATNA A negotiator’s best alternative to a negotiated agreement. 428
Behavior modeling training A formalized method of training in which employees observe and learn from employees with significant amounts of tacit knowledge. 254
Behavioral coping Physical activities used to deal with a stressful situation. 133
Behavioral modeling When employees observe the actions of others, learn from what they observe, and then repeat the observed behavior. 239–240
Behavioral strain, 136, 137
Behaviorally anchored rating scales (BARS) Use of examples of critical incidents to evaluate an employee’s job performance behaviors directly. 47–48
Benevolence The belief that an authority wants to do good for an employee, apart from any selfish or profit-centered motives. 200–201
Benign job demands Job demands that are not appraised as being stressful. 128
Biases
availability, 247–249 cultural differences and, 250 decision-making, 248 negotiator, 429 projection, 247 self-serving, 249
Big Five The five major dimensions of personality including conscientiousness, agreeableness, neuroticism, openness to experience, and extraversion. 266–278
agreeableness, 266, 267, 271, 353, 355–356 assessment and scoring, 268–269 changes over life span, 267–270 conscientiousness, 266, 267, 270–271,
285–287, 353 extraversion, 266, 267, 271–274, 353–354,
355–356 in hiring process, 288–289 neuroticism, 266, 267, 273, 274–276 openness to experience, 266, 267, 276–278 Reenergizing Employees After a Downsizing
(case), 540–542
Big Five Inventory (BFI), 289
Biofeedback, 146
Blocker role, 352
Bonuses, 183, 184, 359
Boosterism Positively representing the organization when in public. 38
Boundary spanning Interactions among team members and individuals and groups who are not part of the team. 381–383
Bounded rationality The notion that people do not have the ability or resources to process all available information and alternatives when making a decision. 246
Brainstorming A team process used to generate creative ideas. 378–379, 380
Bullying, 42
Bureaucratic structure An organizational form that exhibits many of the facets of a mechanistic organization. 491–497
client, 493, 494 functional, 492–495 geographic, 493, 494 matrix, 495–497, 546–548 (case) multi-divisional, 492–497 product, 493–494
Burnout The emotional, mental, and physical exhaustion from coping with stressful demands on a continuing basis. 137
Business environment The outside environment, including customers, competitors, suppliers, and distributors, which all have an impact on organizational design. 490
C Cases
Leading in a Hostile Environment, 546–548 Managing Commitment in Demanding
Jobs, 543–545 Reenergizing Employees After a
Downsizing, 540–542
Causal inference The establishment that one variable does cause another, based on covariation, temporal precedence, and the elimination of alternative explanations. 19
Centrality How important a person’s job is and how many people depend on that person to accomplish their tasks. 416
Centralization Refers to where decisions are formally made in organizations. 388, 483, 486–487, 488
Ceremonies Formal events, generally performed in front of an audience of organizational members. 513
Chain of command Answer to the question of “who reports to whom?” and signifies formal authority relationships. 483, 484
Challenge stressors Stressors that tend to be appraised as opportunities for growth and achievement. 128
job performance and, 141–142 nonwork, 132 organizational commitment and, 141–142 reducing, 143–144 work, 130–131, 141–142
Charisma, 458–460
Chief executive officers (CEOs)
compensation of, 176–177 trust and, 196–197
Circle network structure, 388
Citizens Employees with high commitment levels and low task performance levels who volunteer to do additional activities around the office. 70
Citizenship behavior Voluntary employee behaviors that contribute to organizational goals by improving the context in which work takes place. 35–39
in corporate social responsibility, 219 cultural differences in, 40 interpersonal, 36–37 job satisfaction and, 111 motivation and, 180–181, 182 organizational, 37–38 organizational culture and, 528–529 relevance of, 38–39 trust and, 218
Citizenship fatigue, 39
Civic virtue Participation in company operations at a deeper-than-normal level through voluntary meetings, readings, and keeping up with news that affects the company. 38
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Clear purpose tests Integrity tests that ask about attitudes toward dishonesty, beliefs about the frequency of dishonesty, desire to punish dishonesty, and confession of past dishonesty. 288–290
Client structure An organizational form in which employees are organized around serving customers. 493, 494
Climate for transfer An organizational environment that supports the use of new skills. 254
Closing and commitment The fourth and final stage of the negotiation process, during which the agreement arrived at during bargaining gets formalized. 428
Coalitions An influence tactic in which the influencer enlists other people to help influence the target. 418, 419–420
Coercive power A form of organizational power based on the ability to hand out punishment. 414, 415
Cognition-based trust Trust that is rooted in a rational assessment of the authority’s trustworthiness. 197, 198, 199–201, 215–216
Cognitive abilities, 306–313 Capabilities related to the use of knowledge to make decisions and solve problems. 307
assessing, 312 cognitive cultural intelligence, 308 general, 312, 353, 447 in hiring process, 323–326 perceptual, 309, 311–312 quantitative, 309–310 reasoning, 309, 310 spatial, 309, 310 team member, 353 verbal, 307–309
Cognitive-behavioral techniques, 146–147
Cognitive coping Thoughts used to deal with a stressful situation. 133
Cognitive distortion A reevaluation of the inputs an employee brings to a job, often occurring in response to equity distress. 175
Cognitive moral development As people age and mature, they move through several states of moral development, each more mature and sophisticated than the prior one. 213–214
Cohesion A team state that occurs when members of the team develop strong emotional bonds to other members of the team and to the team itself. 389–390, 391
Managing Commitment in Demanding Jobs (case), 543–545
Collaboration Seen as both a conflict resolution style and an influence tactic whereby both parties work together to maximize outcomes. 418, 424
collaborative problem solving as team competency, 395
in conflict resolution, 424, 425 as influence tactic, 417, 418 “smart,” 377
Commitment. See Organizational commitment
Communal culture An organizational culture type in which employees are friendly to one another and all think alike. 514, 515
Communication The process by which information and meaning is transferred from a sender to a receiver. 386–389
ambassador activities, 381–382 communicator issues, 386–387 information richness in, 387–388 in integrative model of OB, 9 model of communication process, 386 network structure, 388–389 noise in, 387 as team process, 376, 386–389, 395
Communication competence, 386–387
Communion striving A strong desire to obtain acceptance in personal relationships as a means of expressing one’s personality. 271
Communities of practice Groups of employees who learn from one another through collaboration over an extended period of time. 254
Company size The number of employees in a company. 490–491
Company strategy An organization’s objectives and goals and how it tries to capitalize on its assets to make money. 490
Comparison other Another person who provides a frame of reference for judging equity. 174, 175–176, 177
Compensation systems
CEO pay in, 176–177 elements of, 182–184 meaning of money and, 168, 169 motivation and, 167–168, 176–177,
182–184 pay freezes and cuts, 184 pay satisfaction, 95, 96 procedural justice and, 205 reward power, 413–414, 415 task performance and, 35 team compensation, 359–360 types of, 183, 184
Compensatory forms model A model indicating that the various withdrawal behaviors are negatively correlated; engaging in one type of withdrawal makes one less likely to engage in other types. 74–75
Competence The capability to perform work tasks successfully. 179
communication, 386–387
Competing A conflict resolution style by which one party attempts to get his or her own goals met without concern for the other party’s results. 423–424, 425
Compliance When targets of influence are willing to do what the leader asks but do it with a degree of ambivalence. 420, 421
Comprehensive interdependence A form of task interdependence in which team members have a great deal of discretion in terms of what they do and with whom they interact in the course of the collaboration involved in accomplishing the team’s work. 346–347
Compromise A conflict resolution style by which conflict is resolved through give-and- take concessions. 424–425
Compromiser role, 352
Computer technology. See Technology
Confidence building, 385
Conflict resolution, 423–426
alternative dispute resolution, 431–432 conflict management and, 385 leader style and, 423–426 power and, 423–426 as team competency, 395
Conjunctive tasks Tasks for which the team’s performance depends on the abilities of the team’s weakest link. 353
Conscientiousness One of the “Big Five” dimensions of personality reflecting traits like being dependable, organized, reliable, ambitious, hardworking, and persevering. 266, 267, 270–271, 285–287, 353
Consensus Used by decision makers to attribute cause; whether other individuals behave the same way under similar circumstances. 249, 251, 380
Consideration A pattern of behavior where the leader creates job relationships characterized by mutual trust, respect for employee ideas, and consideration of employee feelings. 452–453, 454
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Consistency Used by decision makers to attribute cause; whether this individual has behaved this way before under similar circumstances. 249, 251
Consultation An influence tactic whereby the target is allowed to participate in deciding how to carry out or implement a request. 418
Consultative style A leadership style where the leader presents the problem to employees asking for their opinions and suggestions before ultimately making the decision himself or herself. 448, 450
Contingencies of power, 416
Contingencies of reinforcement Four specific consequences used by organizations to modify employee behavior. 237–238
Contingent reward When the leader attains follower agreement on what needs to be done using rewards in exchange for adequate performance. 457, 458
Continuance commitment An employee’s desire to remain a member of an organization due to an awareness of the costs of leaving. 63–64, 66–68
embeddedness and, 68 strategies to improve, 81
Continuous reinforcement A specific consequence follows each and every occurrence of a certain behavior. 238, 239
Contrast bias, 248
Control movement abilities, 319, 320
Conventional stage of moral development (Kohlberg), 213
Coordination The quality of physical movement in terms of synchronization of movements and balance. 318, 319
as action process for teams, 384–385 task interdependence and, 345, 347 as team competency, 395
Coordination loss Process loss due to the time and energy it takes to coordinate work activities with other team members. 376–377
Coordinator role, 352
Coping Behaviors and thoughts used to manage stressful demands and the emotions associated with the stressful demands. 132
with stressors, 132–135
Corporate social responsibility A perspective that acknowledges that the responsibility of a business encompasses the economic, legal, ethical, and citizenship expectations of society. 219
Correlation The statistical relationship between two variables. Abbreviated r, it can be positive or negative and range from 0 (no statistical relationship) to 1 (a perfect statistical relationship). 17–19
Countercultures When a subculture’s values do not match those of the organization. 520
Counterproductive behavior Employee behaviors that intentionally hinder organizational goal accomplishment. 39–43
job satisfaction and, 111 motivation and, 180, 182 personal aggression, 42 political deviance, 41–42 production deviance, 41 property deviance, 39–41, 211–212,
214–215 substance abuse, 41 trust and, 218
Courtesy Sharing important information with coworkers. 37
Coworker satisfaction Employees’ feelings about their coworkers, including their abilities and personalities. 96, 97
Creative task performance The degree to which individuals develop ideas or physical outcomes that are both novel and useful. 32–33
Creativity
creative behavior as taskwork process, 378–380
in creative task performance, 32–33 innovators and, 32–33 openness to experience and, 266, 267,
276–278 originality and, 309, 310
Creativity culture A specific culture type focused on fostering a creative atmosphere. 517, 518
Crisis situation, 33, 244
Cross-cultural organizational behavior, 10
Cross-training Training team members in the duties and responsibilities of their teammates. 396
Cultural intelligence, 308
Cultural values, 280–287 Shared beliefs about desirable end states or modes of conduct in a given culture that influence the expression of traits. 266
citizenship behavior and, 40 Hofstede’s taxonomy and, 281–283 importance of, 285–287 in integrative model of OB, 9, 285–287 multicultural personality questionnaire, 284 Project GLOBE (Global Leadership
and Organizational Behavior Effectiveness), 281–283, 459
trust propensity by nation, 200
Culturally endorsed implicit leadership theory, 459
Culture The shared values, beliefs, motives, identities, and interpretations that result from common experiences of members of a society and are transmitted across generations. 280
biases and cultural differences, 250 emotional cultural intelligence, 308 motivation and, 174, 179–180
Culture strength The degree to which employees agree about how things should happen within the organization and behave accordingly. 517–520
Customer service culture A specific culture type focused on service quality. 515
Cyberloafing, 72
D Daily hassles Minor day-to-day demands that interfere with work accomplishment. 130
Daydreaming, 72
Decision informity The degree to which team members possess adequate information about their own task responsibilities. 381
Decision making The process of generating and choosing from a set of alternatives to solve a problem. 234, 241–251
centralization and, 488 individual differences in, 251–252 in integrative model of OB, 8–9 leader styles of, 447–451 nonprogrammed decisions, 243, 244 numerous small decisions in organizational
behavior, 12 problems of, 246–251
escalation of commitment, 249–251, 546–548 (case)
faulty attributions, 249, 251 faulty perceptions, 247–249 groupthink, 389–390, 543–545 (case) limited information, 246–247
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programmed decisions, 241–244 rational decision-making model, 244–245, 246 as taskwork process, 380–381
Decoding, 386
Deductive reasoning, 309, 310
Deep-level diversity Diversity of attributes that are inferred through observation or experience, such as one’s values or personality. 355
Delegating When the leader turns responsibility for key behaviors over to employees. 455–456
Delegative style A leadership style where the leader gives the employee the responsibility for making decisions within some set of specified boundary conditions. 448–449, 450
Deontological principles, 214
Depth perception, 319, 320
Descriptive ethics, 208
Devil’s advocate role, 351, 352
Differential exposure Being more likely to appraise day-to-day situations as stressful, thereby feeling that stressors are encountered more frequently. 274
Differential reactivity Being less likely to believe that one can cope with the stressors experienced on a daily basis. 274
Discretion The degree to which managers have the right to make decisions on their own. 416
Disjunctive tasks Tasks with an objectively verifiable best solution for which the member with the highest level of ability has the most influence on team effectiveness. 353
Disposition-based trust Trust that is rooted in one’s own personality, as opposed to a careful assessment of the trustee’s trustworthiness. 197–199, 215
Distinctiveness Used by decision makers to attribute cause; whether the person being judged acts in a similar fashion under different circumstances. 249, 251
Distributive bargaining A negotiation strategy in which one person gains and the other person loses. 426
Distributive justice The perceived fairness of decision-making outcomes. 203, 204, 206
Diversity
in integrative model of OB, 9 managing, 10 organizational commitment and, 75–77 team diversity in, 338–339, 354–356,
543–545 (case)
Diversity culture A specific culture type focused on fostering or taking advantage of a diverse group of employees. 516
Dominator role, 352
Downsizing
employee-employer relationship and, 77–79 informational justice and, 207–208 Reenergizing Employees After a Downsizing
(case), 540–542 in restructuring process, 500–501
Dynamic flexibility, 318, 319
Dynamic strength, 318, 319
E E-mail
emotions of sender in, 387 virtual teams and, 343
Economic exchange Work relationships that resemble a contractual agreement by which employees fulfill job duties in exchange for financial compensation. 218
Egoism, 214
Embeddedness An employee’s connection to and sense of fit in the organization and community. 68
Emotion-focused coping Behaviors and cognitions of an individual intended to help manage emotional reactions to stressful demands. 133
Emotion regulation The ability to recover quickly from emotional experiences. 314
Emotional ability, 313–317
in communication process, 387 emotion regulation, 314 Managing Commitment in Demanding
Jobs (case), 543–545 other awareness, 314 self-awareness, 313 use of emotions, 314–315
Emotional contagion The idea that emotions can be transferred from one person to another. 109
Emotional cues Positive or negative feelings that can help or hinder task accomplishment. 165
Emotional intelligence A set of abilities related to the understanding and use of emotions that affect social functioning. 313
applying, 315 assessing, 315–317 emotional cultural intelligence, 308
Emotional labor When employees manage their emotions to complete their job duties successfully. 109
Emotional Quotient Inventory (EQ-i), 316
Emotional support The empathy and understanding that people receive from others that can be used to alleviate emotional distress from stressful demands. 139
Emotions Intense feelings,often lasting for a short duration, that are clearly directed at someone or some circumstance. 108
affect management, 385 in communication process, 387 negative, 108–109 positive, 108–109 use of, 314–315
Employee assistance programs, 147–148
Encoding, 386
Encounter stage A stage of socialization beginning the day an employee starts work, during which the employee compares the information as an outsider to the information learned as an insider. 522
Encourager role, 351, 352
Energizer role, 351, 352
Engagement A term commonly used in the contemporary workplace to summarize motivation levels. 163
Equity distress An internal tension that results from being overrewarded or underrewarded relative to some comparison other. 175
Equity theory, 173–177 A theory that suggests that employees create a mental ledger of the outcomes they receive for their job inputs, relative to some comparison other. 174
comparison other in, 174, 175–176, 177 equity distress in, 175 outcomes and inputs in, 175, 176 Reenergizing Employees After a Downsizing
(case), 540–542
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Erosion model A model that suggests that employees with fewer bonds with coworkers are more likely to quit the organization. 65
Escalation of commitment A common decision-making error in which the decision maker continues to follow a failing course of action. 249–251
Leading in a Hostile Environment (case), 546–548
Espoused values The beliefs, philosophies, and norms that a company explicitly states. 511, 513–514
Ethics, 208–215 The degree to which the behaviors of an authority are in accordance with generally accepted moral norms. 197
in corporate social responsibility, 219 four-component model of, 210 in integrative model of OB, 8 modeling, 240 moral awareness in, 210–212 moral intent in, 215 moral judgment in, 212–215 prescriptive versus descriptive, 208 ranking by country, 209
Ethics of duties, 214
Ethics of rights, 214
Ethnocentrism One who views his or her cultural values as “right” and values of other cultures as “wrong.” 283, 284
Evidence-based management A perspective that argues that scientific findings should form the foundation for management education. 20
Exchange tactic An influence tactic in which the requestor offers a reward in return for performing a request. 418, 420
Exchanging information The second stage of the negotiation process, during which each party makes the strongest case for its position. 428
Exit A response to a negative work event by which one becomes often absent from work or voluntarily leaves the organization. 70
Expatriates. See also Organizational Behavior (OB) Internationally
behavior modeling training for, 254 challenges faced by, 10 ethnocentrism of, 284 organizational commitment and, 78, 134 stress faced by, 134
Expectancy The belief that exerting a high level of effort will result in successful performance on some task. 164–165, 180
Expectancy theory A theory that describes the cognitive process employees go through to make choices among different voluntary responses. 164–170
expectancy in, 164–165, 180 instrumentality in, 164, 166, 180 motivational force in, 168–170 valence in, 166–168, 180
Expert power A form of organizational power based on expertise or knowledge. 414–415
Expertise The knowledge and skills that distinguish experts from novices. 234
Explicit knowledge Knowledge that is easily communicated and available to everyone. 234–235, 236
Explosive strength, 318, 319
Extent flexibility, 318, 319
External comparisons Comparing oneself to someone in a different company. 175–176
External locus of control, 274–276
Extinction The removal of a positive outcome following an unwanted behavior. 238
Extraversion One of the “Big Five” dimensions of personality reflecting traits like being talkative, sociable, passionate, assertive, bold, and dominant. 266, 267, 271–274, 279, 353–354, 355–356
Extrinsic motivation Desire to put forth work effort due to some contingency that depends on task performance. 167, 168
F Facilitative style A leadership style where the leader presents the problem to a group of employees and seeks consensus on a solution, making sure that his or her own opinion receives no more weight than anyone else’s. 448, 450
Faking Exaggerating responses to a personality test in a socially desirable fashion. 290–291
Family time demands The amount of time committed to fulfilling family responsibilities. 132
Far vision, 319, 320
Fault lines, 355
Faulty attributions, 249, 251
Faulty perceptions, 247–249
Feedback In job characteristics theory, it refers to the degree to which the job itself provides information about how well the job holder is doing. In goal setting theory, it refers to progress updates on work goals. 102, 172
360-degree feedback, 48 cultural differences in, 174 in goal setting theory, 172 information richness and, 387–388 in job characteristics theory, 102
Financial uncertainty Uncertainties with regard to the potential for loss of livelihood, savings, or the ability to pay expenses. 131–132
Fine manipulative abilities, 318–320
Fixed interval schedule Reinforcement occurs at fixed time periods. 238, 239
Fixed ratio schedule Reinforcement occurs following a fixed number of desired behaviors. 239
Flat span of control, 484–486
Flexibility The ability to bend, stretch, twist, or reach. 318, 319
Flextime, 145–146
Flow A state in which employees feel a total immersion in the task at hand, sometimes losing track of how much time has passed. 107
Focus of commitment The people, places, and things that inspire a desire to remain a member of an organization. 65
Follower role, 352
Forced ranking A performance management system in which managers rank subordinates relative to one another. 48–49
Managing Commitment in Demanding Jobs (case), 543–545
Formalization The degree to which rules and procedures are used to standardize behaviors and decisions in an organization. 483, 487
Forming The first stage of team development, during which members try to get a feel for what is expected of them, what types of behaviors are out of bounds, and who’s in charge. 343, 344
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Four-component model A model that argues that ethical behaviors result from the multistage sequence of moral awareness, moral judgment, moral intent, and ethical behavior. 210
Fragmented culture An organizational culture type in which employees are distant and disconnected from one another. 514, 515
Framing bias, 248
Functional structure An organizational form in which employees are grouped by the functions they perform for the organization. 492–495
Fundamental attribution error The tendency for people to judge others’ behaviors as being due to internal factors such as ability, motivation, or attitudes. 249
G g-factor, 312, 313
Gainsharing, 183
Gatekeeper-expediter role, 352
General cognitive ability Capabilities related to the use of knowledge to make decisions and solve problems. 312, 353, 447
Geographic structure An organizational form in which employees are grouped around the different locations where the company does business. 493, 494
Goal commitment The degree to which a person accepts a goal and is determined to reach it. 172–173
Goal interdependence The degree to which team members have a shared goal and align their individual goals with that vision. 348, 349
Goal orientation
assessing, 242 in learning process, 241
Goal setting theory A theory that views goals as the primary drivers of the intensity and persistence of effort. 170–173
components of, 170–173 S.M.A.R.T. goals, 173 specific and difficult goals, 170–171
Goal specification, 384
Google Labs Aptitude Test (GLAT), 323
Gossiping Casual conversations about other people in which the facts are not confirmed as true. 41
Graduate Management Admission Test (GMAT), 322
Gross body coordination, 318, 319
Gross body equilibrium, 318, 319
Group decision support systems, 382
Groupthink Behaviors that support conformity and team harmony at the expense of other team priorities. 389–390
Managing Commitment in Demanding Jobs (case), 543–545
Growth need strength The degree to which employees desire to develop themselves further. 102, 103, 104
Guanxi (influence), in China, 419
H Happiness, assessing, 113
Harassment Unwanted physical contact or verbal remarks from a colleague. 42
sexual, 42, 516
Harmonizer role, 351–352, 352
Health. See also Stress
health and wellness programs, 147–148 health care costs, 143
Hearing sensitivity, 319, 320
Helping Assisting coworkers who have heavy workloads, aiding them with personal matters, and showing new employees the ropes when they are first on the job. 37, 38
Helping behavior, 384
Heuristics Simple and efficient rules of thumb that allow one to make decisions more easily. 247
Hierarchical sensitivity The degree to which the team leader effectively weighs the recommendations of the members. 381
Hierarchy of authority, 488
High-performance work practices, 12–15
Hindrance stressors Stressors that tend to be appraised as thwarting progress toward growth and achievement. 128
job performance and, 141
nonwork, 131–132 organizational commitment and, 141 reducing, 143–144 work, 128–130, 141
Hiring process
applying emotional intelligence in, 315 personality tests in, 287–291 selecting high cognitive ability employees,
323–326
Hispanics, diversity of workforce, 75–77
History A collective pool of experience, wisdom, and knowledge created by people that benefits the organization. 12
Hogan Personality Inventory (HPI), 289
Holocracy, 411, 412, 418, 420–421, 434
Human resource management Field of study that focuses on the applications of OB theories and principles in organizations. 7
Hybrid outcome interdependence When team members receive rewards based on both their individual performance and that of the team to which they belong. 359–360
Hypotheses Written predictions that specify relationships between variables. 17
I Idealized influence When the leader behaves in ways that earn the admiration, trust, and respect of followers, causing followers to want to identify with and emulate the leader. 458–460, 462
Identity The degree to which a job offers completion of a whole, identifiable piece of work. 101
Impact The sense that a person’s actions “make a difference”—that progress is being made toward fulfilling some important purpose. 179
Incivility Communication that is rude, impolite, discourteous, and lacking in good manners. 41–42
Independent forms model A model that predicts that the various withdrawal behaviors are uncorrelated; engaging in one type of withdrawal has little bearing on engaging in other types. 74–75
Individualism-collectivism The degree to which a culture has a loosely knit social framework (individualism) or a tight social framework (collectivism). 281–283
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Individualistic roles Behaviors that benefit the individual at the expense of the team. 352
Individualized consideration When the leader behaves in ways that help followers achieve their potential through coaching, development, and mentoring. 460
Inductive reasoning, 309, 310
Influence The use of behaviors to cause behavioral or attitudinal changes in others. 416
conflict resolution and, 423–426 guanxi (influence) in China, 419 importance of, 429–431 organizational politics and, 420–423 power and, 416–420 resistance to, 420, 421 responses to influence tactics, 420, 421 types of influence tactics, 417–420
Information richness The amount and depth of information that is transmitted in a message. 387–388
Informational justice The perceived fairness of the communications provided to employees from authorities. 204, 207–208
Reenergizing Employees After a Downsizing (case), 540–542
Ingratiation The use of favors, compliments, or friendly behavior to make the target feel better about the influencer. 418
Inimitable Incapable of being imitated or copied. 11
Initial public offerings (IPOs), 13
Initiating structure A pattern of behavior where the leader defines and structures the roles of employees in pursuit of goal attainment. 452–453, 454
Initiator-contributor role, 352
Inspirational appeals An influence tactic designed to appeal to one’s values and ideals, thereby creating an emotional or attitudinal reaction. 417–418
Inspirational motivation When the leader behaves in ways that foster an enthusiasm for and commitment to a shared vision of the future. 460, 462
Instrumental support The help people receive from others that can be used to address a stressful demand directly. 139
Instrumentality The belief that successful performance will result in the attainment of some outcomes. 164, 166, 180
Integrative bargaining A negotiation strategy that achieves an outcome that is satisfying for both parties. 426–427
Integrity The perception that an authority adheres to a set of acceptable values and principles. 201
Integrity tests Personality tests that focus specifically on a predisposition to engage in theft and other counterproductive behaviors (sometimes also called “honesty tests”). 288–291
Intellectual stimulation When the leader behaves in ways that challenge followers to be innovative and creative by questioning assumptions and reframing old situations in new ways. 460, 462
Intelligence quotient (IQ), 312
Interdependence, 345–349
assessing, 345, 346 goal, 348, 349 outcome, 348–349, 359–360 task, 345–348, 349
Interests Expressions of personality that influence behavior through preferences for certain environments and activities. 279–280
Internal comparisons Comparing oneself to someone in the same company. 175–176
Internal locus of control, 274–276
Internalization A response to influence tactics where the target agrees with and becomes committed to the request. 420, 421
International corporations. See Organizational Behavior (OB) Internationally
Interpersonal citizenship behavior Going beyond normal job expectations to assist, support, and develop coworkers and colleagues. 36–37
Interpersonal influence, 421
Interpersonal justice The perceived fairness of the interpersonal treatment received by employees from authorities. 204, 206–207
Interpersonal processes Teamwork processes, such as motivating and confidence building, that focus on the management of relationships among team members. 384, 385
Intrinsic motivation Desire to put forth work effort due to the sense that task performance serves as its own reward. 167, 168
Introspection, 22
Introversion, 279
Intuition An emotional judgment based on quick, unconscious, gut feelings. 242–244
method of intuition, 16
J Job analysis A process by which an organization determines requirements of specific jobs. 33–34
Job characteristics theory A theory that argues that five core characteristics (variety, identity, significance, autonomy, and feedback) combine to result in high levels of satisfaction with the work itself. 100–103
assessing core job characteristics, 105 autonomy and, 102 feedback and, 102 growth need strength, 102, 103, 104 identity and, 101 knowledge and skill, 103 Reenergizing Employees After a Downsizing
(case), 540–542 significance and, 101, 102 variety and, 100
Job crafting Proactively shaping and molding the characteristics contained within one’s job. 103
Job Description Index (JDI), 114–115
Job enrichment When job duties and responsibilities are expanded to provide increased levels of core job characteristics. 103
Job in General (JIG) scale, 114–115
Job performance, 28–58 Employee behaviors that contribute either positively or negatively to the accomplishment of organizational goals. 30–31
citizenship behavior and, 31, 35–39 compensation and, 184 counterproductive behavior and. See
Counterproductive behavior dilemmas of, 30–31 influence and, 429–431 in integrative model of OB, 7, 8 job satisfaction and, 109–115 leadership and, 465–466 learning and, 253 meaning of “good performer,” 31–39, 44–45 motivation and, 180, 182, 184 organizational culture and, 527–529 organizational structure and, 498–499 performance management and, 46–49 power and, 429–431 social recognition and, 18–20 strategies to improve, 46–49
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stress and, 134, 141–142, 144 task performance and, 31–35 team characteristics and, 358–359 team processes and, 392–395 trends affecting, 45–46 trust and, 218
Job satisfaction, 92–122 A pleasurable emotional state resulting from the appraisal of one’s job or job experiences. It represents how a person feels and thinks about his or her job. 94
citizenship behavior and, 111 conscientiousness and, 285–287 counterproductive behavior and, 111 emotions and, 108–109 importance of, 109–113 individual differences in, 109–110 in integrative model of OB, 8, 109–113 job characteristics theory, 100–103,
540–542 (case) job performance and, 109–115 leadership and, 464 life satisfaction and, 111–115 mood and, 104–108 organizational commitment and, 113–115 organizational culture and, 528 power and influence in, 429–431 tracking, 113–115 values and, 94–109 work specialization and, 484
Job security, employee-employer relationship and, 77–79
Job sharing, 144
Juries, decision making by, 380–381
Justice, 203–208 The perceived fairness of an authority’s decision making. 197
distributive, 203, 204, 206 informational, 204, 207–208, 540–542 (case) in integrative model of OB, 8 interpersonal, 204, 206–207 procedural, 204–205
K Knowledge
explicit, 234–235, 236 tacit, 235–236 training and, 254
Knowledge and skill The degree to which employees have the aptitude and competence needed to succeed on their job. 102, 103
Knowledge of results A psychological state indicating the extent to which employees are aware of how well or how poorly they are doing. 100
Knowledge transfer The exchange of knowledge between employees. 254
Knowledge work Jobs that primarily involve cognitive activity versus physical activity. 45
L Laissez-faire leadership When the leader avoids leadership duties altogether. 457, 458
Language The jargon, slang, and slogans used within an organization. 512
Layoffs
informational justice and, 207–208, 540–542 (case)
in restructuring process, 500–501
Leader effectiveness, 444–463 The degree to which the leader’s actions result in the achievement of the unit’s goals, the continued commitment of the unit’s employees, and the development of mutual trust, respect, and obligation in leader– member dyads. 446
in integrative model of OB, 9, 464–466 leader-member exchange (LMX) theory of,
444–446 leader style and. See Leader styles traits, 446–447
Leader emergence The process of becoming a leader in the first place. 446–447
Leader-member exchange theory (LMX) A theory describing how leader– member relationships develop over time on a dyadic basis. 444–446
Leader-staff teams A type of team that consists of members who make recommendations to the leader who is ultimately responsible for team decisions. 351
Leader styles, 442–451
autocratic, 447–448, 449–450 conflict resolution and, 423–426 consultative, 448, 450 delegative, 448–449, 450 effectiveness across cultures, 459 effectiveness of, 442–451 facilitative, 448, 450 in integrative model of OB, 9, 464–466 span of control and, 483, 484–486
Leadership, 442–478. See also Power The use of power and influence to direct the activities of followers toward goal achievement. 412, 444
changes in, 523–524 day-to-day behaviors, 452–456
decision-making styles, 447–451 in holocracy, 411, 412, 418, 420–421, 434 importance of, 464–466 influence and, 416–420 leader effectiveness, 444–463 leader emergence, 446–447 leader-member exchange (LMX) theory,
444–446 leader styles. See Leader styles Leading in a Hostile Environment (case),
546–548 life cycle theory of, 453–456 Managing Commitment in Demanding Jobs
(case), 543–545 negotiation and, 426–429 power and, 412–416 Project GLOBE (Global Leadership
and Organizational Behavior Effectiveness), 281–283, 459
Reenergizing Employees After a Downsizing (case), 540–542
substitutes for leadership model, 464–466 time-driven model of, 449–451 training programs, 456, 466 transformational leadership behaviors,
456–461, 462
Learning, 232–262 A relatively permanent change in an employee’s knowledge or skill that results from experience. 234
importance of, 253 in integrative model of OB, 8–9, 253 job performance and, 253 methods of, 236–241
goal orientation, 241, 242 observation, 239–240 reinforcement, 236–239
organizational commitment and, 253 training and, 254 types of knowledge, 234–236 variations in, 234–241
Learning orientation A predisposition or attitude according to which building competence is deemed more important by an employee than demonstrating competence. 241
Legitimate power A form of organizational power based on authority or position. 413, 415
Life cycle theory of leadership A theory stating that the optimal combination of initiating structure and consideration depends on the readiness of the employees in the work unit. 453–456
Life satisfaction The degree to which employees feel a sense of happiness with their lives in general. 111
assessing happiness, 113 job satisfaction and, 111–115
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Living Wage Calculator (MIT), 5
Locus of control Whether one believes the events that occur around him or her are self-driven or driven by the external environment. 274–276
Lone wolves Employees with low commitment levels and high task performance levels who focus on their own career rather than what benefits the organization. 70
Long breaks, 72
Looking busy, 72
Loyalty A passive response to a negative work event in which one publicly supports the situation but privately hopes for improvement. 70
M Machiavellianism, 422
Management by objectives (MBO) A management philosophy that bases employee evaluations on whether specific performance goals have been met. 46–47
Management teams A relatively permanent team that participates in managerial-level tasks that affect the entire organization. 339–340, 356–358
Masculinity-femininity The degree to which a culture values stereotypically male traits (masculinity) or stereotypically female traits (femininity). 281–283
Mathematical reasoning, 309–310
Matrix structures A complex form of organizational structure that combines a functional and multi-divisional grouping. 495–497
Leading in a Hostile Environment (case), 546–548
Maximum performance Performance in brief, special circumstances that demand a person’s best effort. 285–287
Meaning of money The idea that money can have symbolic value (e.g, achievement, respect, freedom) in addition to economic value. 168, 169
Meaningfulness Captures the value of a work goal or purpose, relative to a person’s own ideals and passions. 179
Meaningfulness of work A psychological state reflecting one’s feelings about work tasks, goals, and purposes, and the degree to which they contribute to society and fulfill one’s ideals and passions. 100
Mechanistic organizations Efficient, rigid, predictable, and standardized organizations that thrive in stable environments. 488–489
Mediation A process by which a third party facilitates a dispute resolution process but with no formal authority to dictate a solution. 431–432
Mental models The degree to which team members have a shared understanding of important aspects of the team and its task. 390–392
Mentoring The process by which a junior- level employee develops a deep and long- lasting relationship with a more senior-level employee within the organization. 531
Mercenary culture An organizational culture type in which employees think alike but are not friendly to one another. 514, 515
Mergers and acquisitions, 39–40, 524–526, 546–548 (case)
Merit pay, 183, 184, 205
Message, 386
Meta-analysis A method that combines the results of multiple scientific studies by essentially calculating a weighted average correlation across studies (with larger studies receiving more weight). 20
Method of authority When people hold firmly to some belief because some respected official, agency, or source has said it is so. 16
Method of experience When people hold firmly to some belief because it is consistent with their own experience and observations. 16
Method of intuition When people hold firmly to some belief because it “just stands to reason”—it seems obvious or self-evident. 16
Method of science When people accept some belief because scientific studies have tended to replicate that result using a series of samples, settings, and methods. 16–20
Missing meetings, 72
Mission analysis, 384
Mission statements
espoused values and, 511, 513 goal interdependence and, 348, 349
Monitoring progress toward goals, 384
Moods States of feeling that are mild in intensity, last for an extended period of time, and are not directed at anything. 105–108
extraversion and, 273 job satisfaction and, 104–108 neuroticism and, 273
Moonlighting, 72
Moral attentiveness The degree to which people chronically perceive and consider issues of morality during their experiences. 211–212
Moral awareness When an authority recognizes that a moral issue exists in a situation. 210–212
Moral identity The degree to which a person views himself or herself as a moral person. 215
Moral intensity The degree to which an issue has ethical urgency. 211
Moral intent An authority’s degree of commitment to the moral course of action. 215
Moral judgment When an authority can accurately identify the “right” course of action. 212–215
Moral principles Prescriptive guides for making moral judgments. 213–215
Motivation, 160–193 A set of energetic forces that determine the direction, intensity, and persistence of an employee’s work effort. 162
citizenship behavior and, 180–181, 182 compensation and, 167–168, 169, 176–177,
182–184 counterproductive behavior and, 180, 182 cultural differences in, 174, 179–180 effort in, 162 engagement in, 163 equity theory of, 173–177, 540–542 (case) expectancy theory of, 164–170 extrinsic, 167, 168 goal setting theory of, 170–173 importance of, 180–182 inspirational, 460 in integrative model of OB, 8, 180–182 as interpersonal process, 385 intrinsic, 167, 168 job performance and, 180, 182, 184 organizational commitment and, 180–181 power and influence in, 429 psychological empowerment and, 177–180
Motivational loss Process loss due to team members’ tendency to put forth less effort on team tasks than they could. 377–378
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Multi-divisional structure An organizational form in which employees are grouped by product, geography, or client. 492–497
Multicultural personality questionnaire, 284
Multicultural teams, 356
Multinational teams, 382
Myers-Briggs Type Indicator (MBTI) A personality framework that evaluates people on the basis of four types or preferences: extraversion versus introversion, sensing versus intuition, thinking versus feeling, and judging versus perceiving. 279
N Narrow/tall span of control, 484–486
Near vision, 319, 320
Needs Groupings or clusters of outcomes viewed as having critical psychological or physiological consequences. 166–167
Negative affectivity A dispositional tendency to experience unpleasant moods such as hostility, nervousness, and annoyance. 274
Negative emotions Employees’ feelings of fear, guilt, shame, sadness, envy, and disgust. 108–109
Negative life events Events such as a divorce or death of a family member that tend to be appraised as a hindrance. 131
Negative reinforcement An unwanted outcome is removed following a desired behavior. 237
Neglect A passive, destructive response to a negative work event in which one’s interest and effort in work decline. 70
Negotiation, 426–429 A process in which two or more interdependent individuals discuss and attempt to reach agreement about their differences. 426
in integrative model of OB, 9 negotiator biases in, 429 stages of, 428 strategies for, 426–427
NEO Five-Factor Inventory (NEO-FFI), 289
Network structure The pattern of communication that occurs regularly among each member of a team. 388–389
Networked culture An organizational culture type in which employees are friendly to one another, but everyone thinks differently and does his or her own thing. 514, 515
Networking ability, 421
Neuroticism One of the “Big Five” dimensions of personality reflecting traits like being nervous, moody, emotional, insecure, jealous, and unstable. 266, 267, 273, 274–276
Neutral Objects Questionnaire (Gripe Index), 275
Neutralizers Situational characteristics that reduce the importance of the leader and do not improve employee performance in any way. 464–466
Newcomer orientation A common form of training during which new hires learn more about the organization. 530
Night vision, 319, 320
Noise, 387
Nominal group technique A team process used to generate creative ideas, whereby team members individually write down their ideas and then take turns sharing them with the group. 379–380
Nonprogrammed decisions Decisions made by employees when a problem is new, complex, or not recognized. 243, 244
Normative commitment, 68–69 An employee’s desire to remain a member of an organization due to a feeling of obligation. 63–64
job satisfaction and, 111 strategies to improve, 81 volunteering and, 69
Norming The third stage of team development, during which members realize that they need to work together to accomplish team goals and consequently begin to cooperate. 343, 344
Number facility, 309–310
Numerous small decisions People making many small decisions every day that are invisible to competitors. 12
O Observable artifacts Aspects of an organization’s culture that employees and outsiders can easily see or talk about. 511–513
Observation, in learning process, 239–240
Occupational Information Network (O*NET) An online database containing job tasks, behaviors, required knowledge, skills, and abilities. 34–35, 307, 318
Olympics, 166
Openness to experience One of the “Big Five” dimensions of personality reflecting traits like being curious, imaginative, creative, complex, refined, and sophisticated. 266, 267, 276–278
Operant conditioning, 236–241
contingencies of reinforcement, 237–238 schedules of reinforcement, 238–239
Oral comprehension, 307, 309
Oral expression, 308, 309
Organic organizations Flexible, adaptive, outward-focused organizations that thrive in dynamic environments. 489
Organizational behavior (OB), 4–27 Field of study devoted to understanding, explaining, and ultimately improving the attitudes and behaviors of individuals and groups in organizations. 6–7
challenges of, 14–15 conceptual argument for, 10–12 importance of, 9–15 integrative model of, 7–9 research evidence on, 7, 12–20
Organizational Behavior (OB) Assessments
of affective commitment, 66 Big Five, 268–269 of centralization, 488 of cohesion, 391 of core job characteristics, 105 of creativity culture, 518 of emotional intelligence, 317 of goal orientation, 242 of helping behavior, 38 of initiating structure and consideration, 454 of introspection, 22 of the meaning of money, 169 of political skill, 422 of team interdependence, 346 of trust propensity, 199 of Type A Behavior Pattern, 138
Organizational Behavior (OB) at the Bookstore
Deep Work (Newport), 163 Gritt (Duckworth), 287 How to Have a Good Day (Webb), 15 Humility is the New Smart (Hess and
Ludwig), 316 Inclusion (Brown), 341 Mastering Civility (Porath), 43 Originals (Grant), 524
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Organizational Behavior (OB) at the Bookstore—Cont.
Peak (Ericsson and Pool), 235 The Power of Meaning (Smith), 101 Pre-Suasion (Cialdini), 417 Radical Candor (Scott), 202 The Silo Effect (Tett), 495 Smart Collaboration (Gardner), 377 Superbosses (Finkelstein), 461 Widgets (Wagner), 80 Work Without Stress (Roger and Petrie), 148
Organizational Behavior (OB) Internationally
assessing happiness, 113 citizenship behavior, 40 cross-cultural organizational behavior, 10 cultural differences in motivation, 174 cultural differences in placing responsibility,
250 cultural intelligence, 308 effectiveness of leader styles across cultures,
459 ethical ranking by country, 209 expatriate stress, 134 guanxi (influence) in China, 419 international mergers and acquisitions, 525 multicultural personality questionnaire, 284 multicultural teams, 356 multinational teams, 382 organizational commitment in multinational
corporations, 78 organizational structure, 496
Organizational Behavior (OB) on Screen
Arrival, 350 The Big Short, 245 Bridge of Spies, 427 Chef, 71 The Circle, 521 Deepwater Horizon, 129 The Founder, 216 Hidden Figures, 311 The Imitation Game, 485 La La Land, 272 The Martian, 451 Moneyball, 21 Paterson, 99 Spotlight, 383 Star Trek Beyond, 178 Sully, 36
Organizational chart A drawing that represents every job in the organization and the formal reporting relationships between those jobs. 482–483, 492, 493, 497
Organizational citizenship behavior Going beyond normal expectations to improve operations of the organization, as
well as defending the organization and being loyal to it. 37–38
Organizational commitment, 60–89 An employee’s desire to remain a member of an organization. 62
employee-employer relationship and, 77–79, 135
employee task performance levels, 70–72 focus of commitment, 65 influence and, 429–431 in integrative model of OB, 7, 8 job satisfaction and, 113–115 leadership and, 465–466 Leading in a Hostile Environment (case),
546–548 learning and, 253 Managing Commitment in Demanding Jobs
(case), 543–545 meaning of “committed,” 63, 75, 76 motivation and, 180–181 organizational culture and, 527–529,
546–548 (case) organizational structure and, 498–499 power and, 429–431 social recognition and, 18–20 strategies to improve, 79–81 stress and, 135, 141–142, 144 team characteristics and, 358–359 team processes and, 392–395 trends affecting, 62, 77–79 trust and, 217–219 turnover and, 62, 66–68, 74, 77–79, 81 types of commitment, 63–69
affective. See Affective commitment continuance, 63–64, 66–68, 81 normative. See Normative commitment
withdrawal behavior, 62, 69–75, 81 workforce diversity and, 75–77
Organizational culture, 508–539. See also Organizational Behavior (OB) Internationally The shared social knowledge within an organization regarding the rules, norms, and values that shape the attitudes and behaviors of its employees. 510
changing, 523–526 components of, 510–514 culture strength, 517–520 general culture types, 514 importance of, 527–529 in integrative model of OB, 9, 527–529 Leading in a Hostile Environment (case),
546–548 maintaining, 520–523 person-organization fit and, 528 socialization process in, 529–531 specific culture types, 514–517 variations in, 518, 526–527, 528
Organizational design The process of creating, selecting, or changing the structure of an organization. 489–491
Organizational politics Individual actions directed toward the goal of furthering a person’s own self-interests. 421–423
Organizational power, 413–414, 429, 430
coercive, 414, 415 legitimate, 413, 415 reward, 413–414, 415
Organizational structure, 480–507 Formally dictates how jobs and tasks are divided and coordinated between individuals and groups within the company. 482
bureaucratic structures, 491–497 common forms, 491–497 elements of, 483–489 importance of, 498–499 in integrative model of OB, 9, 498–499 organizational charts, 482–483, 492,
493, 497 organizational design and, 489–491 restructuring and, 499, 500–501, 540–542
(case) simple structures, 491, 492 variations in, 482–483, 497–498, 499
Orientation programs, 530
Orienter role, 351, 352
Originality, 309, 310
Other awareness The ability to recognize and understand the emotions that other people are feeling. 314
Outcome interdependence The degree to which team members share equally in the feedback and rewards that result from the team achieving its goals. 348–349, 359–360
P Parallel teams A team composed of members from various jobs within the organization that meets to provide recommendations about important issues. 340–341
Participating When the leader shares ideas and tries to help the group conduct its affairs. 455
Passive management-by-exception When the leader waits around for mistakes and errors, then takes corrective action as necessary. 457, 458
Past accomplishments The level of success or failure with similar job tasks in the past. 165
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Pay. See Compensation systems
Pay satisfaction Employees’ feelings about the compensation for their jobs. 95, 96
Perceived organizational support The degree to which employees believe that the organization values their contributions and cares about their well-being. 79–81
Perceptual ability The capacity to perceive, understand, and recall patterns of information. 309, 311–312
Perceptual speed, 309
Performance-avoid orientation A predisposition or attitude by which employees focus on demonstrating their competence so that others will not think poorly of them. 241
Performance management
job performance and, 46–49
Performance-prove orientation A predisposition or attitude by which employees focus on demonstrating their competence so that others think favorably of them. 241
Performing The fourth stage of team development, during which members are comfortable working within their roles, and the team makes progress toward goals. 344
Person-organization fit The degree to which a person’s values and personality match the culture of the organization. 528
Personal aggression Hostile verbal and physical actions directed toward other employees. 42
Personal appeals An influence tactic in which the requestor asks for something based on personal friendship or loyalty. 418–419
Personal Characteristics Inventory (PCI), 289
Personal clarification Training in which members simply receive information regarding the roles of the other team members. 396
Personal development Participation in activities outside of work that foster growth and learning. 132
Personal power, 413, 414–415, 429, 430
expert, 414–415 referent, 415
Personality, 264–303 The structures and propensities inside a person that explain his or her characteristic patterns of thought, emotion, and behavior. Personality reflects
what people are like and creates their social reputation. 266
Big Five taxonomy, 266–278, 540–542 (case)
changes over life span, 267–270 importance of, 285–287 in integrative model of OB, 9, 285–287 integrity tests, 288–291 multicultural personality questionnaire, 284 Myers-Briggs Type Indicator (MBTI), 279 personality tests in hiring process, 287–291 RIASEC model, 279–280 team member, 353–354, 355–356 twin studies, 267
Personality Research Form (PRF), 289
Physical ability, 306, 318–321
flexibility and coordination, 318, 319 physical cultural intelligence, 308 psychomotor, 318–320 sensory, 319, 320 stamina, 318, 319 strength, 318, 319 team member, 352–353
Physical structures The organization’s buildings and internal office designs. 511–512
Physical withdrawal A physical escape from the work environment. 72–75
Physiological strain, 135–137
Piece-rate compensation plans, 183
Pleasantness The degree to which an employee is in a good versus bad mood. 106
Political deviance Behaviors that intentionally disadvantage other individuals. 41–42
Political skill The ability to understand others and the use of that knowledge to influence them to further personal or organizational objectives. 421–422
Pooled interdependence A form of task independence in which group members complete their work assignments independently, and then their work is simply added together to represent the group’s output. 345, 347
Positional modeling Training that involves observations of how other team members perform their roles. 396
Positional rotation Training that gives members actual experience carrying out the responsibilities of their teammates. 396
Positive affectivity A dispositional tendency to experience pleasant, engaging moods such as enthusiasm, excitement, and elation. 273–274
Positive emotions Employees’ feelings of joy, pride, relief, hope, love, and compassion. 108–109
Positive life events Events such as marriage or the birth of a child that tend to be appraised as a challenge. 132
Positive reinforcement When a positive outcome follows a desired behavior. 237
Potency A team state reflecting the degree of confidence among team members that the team can be effective across situations and tasks. 390
Power, 410–440 The ability to influence the behavior of others and resist unwanted influence in return. 412
acquiring, 412–416 conflict resolution and, 423–426 contingency factors, 416 guidelines for using, 415 importance of, 429–431 influence and, 416–420 in integrative model of OB, 9, 429–431 Leading in a Hostile Environment (case),
546–548 negotiation and, 426–429 organizational politics and, 420–423 types of, 413–416
organizational, 413–414, 415, 429, 430 personal, 413, 414–415, 429, 430
variations in, 413
Power distance The degree to which a culture prefers equal power distribution (low power distance) or an unequal power distribution (high power distance). 281–283
Preconventional stage of moral development (Kohlberg), 213
Preparation The first stage of the negotiation process, during which each party determines its goals for the negotiation. 428
Prescriptive ethics, 208
Presenteeism, 142
Pressure An influence tactic in which the requestor attempts to use coercive power through threats and demands. 418, 419
Primary appraisal Evaluation of whether a demand is stressful and, if it is, the implications of the stressor in terms of personal goals and well-being. 127–132
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Principled stage of moral development (Kohlberg), 213–214
Problem-focused coping Behaviors and cognitions of an individual intended to manage the stressful situation itself. 133
Problem sensitivity, 309, 310
Procedural justice The perceived fairness of decision-making processes. 204–205
Procedural-technician role, 352
Process gain When team outcomes are greater than expected based on the capabilities of the individual members. 376
Process loss When team outcomes are less than expected based on the capabilities of the individual members. 376
Product structure An organizational form in which employees are grouped around different products that the company produces. 493–494
Production blocking A type of coordination loss resulting from team members having to wait on each other before completing their own part of the team task. 377
Production deviance Intentionally reducing organizational efficiency of work output. 41
Profit sharing, 183, 184
Programmed decisions Decisions that are somewhat automatic because the decision maker’s knowledge allows him or her to recognize the situation and the course of action to be taken. 241–244
Progression model A model indicating that the various withdrawal behaviors are positively correlated; engaging in one type of withdrawal makes one more likely to engage in other types. 74–75, 81
Project GLOBE A collection of 170 researchers from 62 cultures who examine the impact of culture on the effectiveness of leader attributes, behaviors, and practices. 281–283, 459
Project teams A team formed to take on one-time tasks, most of which tend to be complex and require input from members from different functional areas. 340, 341–342, 356–358
Projection bias The faulty perception by decision makers that others think, feel, and act the same way as they do. 247
Promotion satisfaction Employees’ feelings about how the company handles promotions. 96–97
Property deviance Behaviors that harm the organization’s assets and possessions. 39–41, 211–212, 214–215
Psychological contracts Employee beliefs about what employees owe the organization and what the organization owes them. 79
Psychological empowerment An energy rooted in the belief that tasks are contributing to some larger purpose. 177–180
Reenergizing Employees After a Downsizing (case), 540–542
Psychological safety, 389
Psychological strain, 136, 137
Psychological withdrawal Mentally escaping the work environment. 72, 73, 74–75
Psychomotor ability Capabilities associated with manipulating and controlling objects. 318–320
Punctuated equilibrium A sequence of team development during which not much gets done until the halfway point of a project, after which teams make necessary changes to complete the project on time. 344–345
Punishment When an unwanted outcome follows an unwanted behavior. 238
Q Quantitative ability Capabilities associated with doing basic mathematical operations and selecting and applying formulas to solve mathematical problems. 309–310
Quitting, 74
R Ratio bias effect, 248
Rational decision-making model A step- by-step approach to making decisions that is designed to maximize outcomes by examining all available alternatives. 244–245
bounded rationality versus, 246
Rational persuasion The use of logical arguments and hard facts to show someone that a request is worthwhile. 417, 418
Readiness The degree to which employees have the ability and the willingness to accomplish their specific tasks. 453–455
Realistic job previews (RJPs) The process of ensuring that a potential employee understands both the positive and negative aspects of the potential job. 529–530
Reality shock A mismatch of information that occurs when an employee finds that aspects of working at a company are not what the employee expected it to be. 522
Reasoning ability A diverse set of abilities associated with sensing and solving problems using insight, rules, and logic. 309, 310
Receiver, 386
Recency bias, 248
Reciprocal interdependence A form of task interdependence in which group members interact with only a limited subset of other members to complete the team’s work. 345, 347
Recognition awards, 183
Recognition seeker role, 352
Referent power A form of organizational power based on the attractiveness and charisma of the leader. 415
Reinforcement, 236–239
in behavioral modeling, 239–240 contingencies of, 237–238 schedules of, 238–239
Relational contracts Psychological contracts that focus on a broad set of open-ended and subjective obligations. 79
Relationship conflict Disagreements among team members with regard to interpersonal relationships or incompatibilities in personal values or preferences. 385
Relaxation techniques, 146
Reliability, 22
Representativeness bias, 248
Reputation The prominence of an organization’s brand in the minds of the public and the perceived quality of its goods and services. 196
Resistance When a target refuses to perform a request and puts forth an effort to avoid having to do it. 420
to influence, 420, 421
Resource-based view A model that argues that rare and inimitable resources help firms maintain competitive advantage. 10–11
Response orientation, 319, 320
Response time, 319, 320
Responsibility for outcomes A psychological state indicating the degree to
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which employees feel they are key drivers of the quality of work output. 100
cultural differences in placing responsibility, 250
Restructuring The process of changing an organization’s structure. 499, 500–501
Reenergizing Employees After a Downsizing (case), 540–542
Reward power A form of organizational power based on the control of resources or benefits. 413–414, 415
RIASEC model An interest framework summarized by six different personality types including realistic, investigative, artistic, social, enterprising, and conventional. 279–280
Rituals The daily or weekly planned routines that occur in an organization. 512–513
Role The behavior a person is generally expected to display in a given context. 350
team member, 350–352
Role ambiguity When an individual has a lack of direction and information about what needs to be done. 128–129
Role conflict When others have conflicting expectations of what an individual needs to do. 128
Role making The phase in a leader–follower relationship when a follower voices his or her own expectations for the relationship, resulting in a free-flowing exchange of opportunities and resources for activities and effort. 444–446
Role overload When an employee has too many demands to work effectively. 129–130
Role taking The phase in a leader–follower relationship when a leader provides an employee with job expectations and the follower tries to meet those expectations. 444–446
Routine task performance Well-known or habitual responses by employees to predictable task demands. 32
Rule of One-Eighth The belief that at best one-eighth, or 12 percent, of organizations will actually do what is required to build profits by putting people first. 14
S Sabbaticals, 144
Sabotage Purposeful destruction of equipment, organizational processes, or company products. 39
Safety culture A specific culture type focused on the safety of employees. 516
SAT (Scholastic Assessment Test), 307, 322
Satisfaction with the work itself, 96, 97–103
Satisficing When a decision maker chooses the first acceptable alternative considered. 246
Schedules of reinforcement The timing of when contingencies are applied or removed. 238–239
Scientific management, 98–99
Scientific method, 16–20
Scout activities Boundary-spanning activities that are intended to obtain information about technology, competitors, or the broader marketplace. 382
Secondary appraisal When people determine how to cope with the various stressors they face. 132–133
Selective perception The tendency for people to see their environment only as it affects them and as it is consistent with their expectations. 247
Self-awareness The ability to recognize and understand the emotions in oneself. 313
Self-confessor role, 352
Self-determination A sense of choice in the initiation and continuation of work tasks. 179
Self-efficacy The belief that a person has the capabilities needed to perform the behaviors required on some task. 165
in goal setting theory, 170
Self-serving bias When one attributes one’s own failures to external factors and success to internal factors. 249
Self-set goals The internalized goals that people use to monitor their own progress. 170
Selling When the leader explains key issues and provides opportunities for clarification. 455
Sender, 386
Sensory ability Capabilities associated with vision and hearing. 319, 320
Sequential interdependence A form of task interdependence in which group members
perform different tasks in a prescribed sequence, and members depend on only the member who comes before them in the sequence. 345, 347
Service work Providing a service that involves direct verbal or physical interactions with customers. 45–46
Sexual harassment, 42, 516
Short-term vs. long-term orientation The degree to which a culture stresses values that are past- and present-oriented (short-term orientation) or future-oriented (long-term orientation). 281–283
Sick leave, 73–74
Significance The degree to which a job really matters and impacts society as a whole. 101, 102
Similarity-attraction approach A theory explaining that team diversity can be counterproductive because people tend to avoid interacting with others who are unlike them. 354–355
Simple structures An organizational form that features one person as the central decision-making figure. 491, 492
Situational strength The degree to which situations have clear behavioral expectations, incentives, or instructions that make differences between individuals less important. 286
Six Sigma, 29
Slacker role, 352
S.M.A.R.T. goals Acronym that stands for Specific, Measurable, Achievable, Results- Based, Time-Sensitive goals. 173
Social astuteness, 421
Social exchange Work relationships that are characterized by mutual investment, with employees willing to engage in “extra mile” sorts of behaviors because they trust that their efforts will eventually be rewarded. 218
Social identity theory A theory that people identify themselves based on the various groups to which they belong and judge others based on the groups they associate with. 247
Social influence model A model that suggests that employees with direct linkages to coworkers who leave the organization will themselves become more likely to leave. 65
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Social learning theory Theory that argues that people in organizations learn by observing others. 239–240
Social loafing A type of motivational loss resulting from members feeling less accountable for team outcomes relative to independent work that results in individually identifiable outcomes. 378, 379
Social network diagrams, 65, 67, 76
Social networking systems, 49, 389
Social support The help people receive from others when they are confronted with stressful demands. 139
Socialization The primary process by which employees learn the social knowledge that enables them to understand and adapt to the organization’s culture. 520–523
anticipatory stage, 521–522 encounter stage, 522 managing, 529–531 reality shock, 522 understanding and adaptation, 522–523
Socializing, 72
Socially complex resources Resources created by people, such as culture, teamwork, trust, and reputation. The source of competitive advantage is known, but the method of replicating the advantage is unclear. 12
Span of control Represents how many employees each manager in the organization has responsibility for. 483, 484–486
Spatial ability Capabilities associated with visual and mental representation and manipulation of objects in space. 309, 310
Spatial orientation, 309, 310
Specific and difficult goals Goals that stretch an employee to perform at his or her maximum level while still staying within the boundaries of his or her ability. 170–171
Speech recognition, 319, 320
Speed and flexibility of closure, 309, 311–312
Sportsmanship Maintaining a positive attitude with coworkers through good and bad times. 37
Staff validity The degree to which team members make good recommendations to the team leader. 381
Stamina The ability of a person’s lungs and circulatory system to work efficiently while
he or she is engaging in prolonged physical activity. 318, 319
Standard setter role, 352
Stars Employees with high commitment levels and high task performance levels who serve as role models within the organization. 70, 72
Static strength, 318, 319
Status striving A strong desire to obtain power and influence within a social structure as a means of expressing one’s personality. 273
Stereotypes Assumptions made about others based on their social group membership. 247
surface-level diversity and, 355
Stories Anecdotes, accounts, legends, and myths passed down from cohort to cohort within an organization. 512
Storming The second stage of team development, during which conflict occurs due to members’ ongoing commitment to ideas they bring with them to the team. 343–344
Strain Negative consequences of the stress response. 127
experience of, 135–137 reducing, 146–148 types of, 135–137
Strategic management Field of study devoted to exploring the product choices and industry characteristics that affect an organization’s profitability. 7
Strategy formulation, 384
Strength The degree to which the body is capable of exerting force. 318, 319
Stress, 124–159 The psychological response to demands when there is something at stake for the individual, and where coping with these demands would tax or exceed the individual’s capacity or resources. 127
assessing, 143 coping with stressors, 132–135 health care costs and, 143 importance of, 140–142 job performance and, 134, 141–142, 144 managing, 139, 143–148 organizational commitment and, 135,
141–142, 144 organizational culture and, 528 relative job rankings, 126 of restructuring, 499, 500–501, 540–542
(case)
transactional theory of, 127–140, 543–545 (case)
Type A Behavior Pattern and, 137–139 types of stressors, 128–132
Stress audit, 143
Stressors Demands that cause the stress response. 127
challenge, 128, 130–131, 132, 141–142, 143–144
coping with, 132–135 differential exposure to, 274 differential reactivity to, 274 hindrance, 128, 131–132, 141, 143–144 Managing Commitment in Demanding Jobs
(case), 543–545 reducing, 143–144 stressful life events, 132 types of, 128–132
Subcultures A culture created within a small subset of the organization’s employees. 519, 520
Substance abuse The abuse of drugs or alcohol before coming to work or while on the job. 41
Substitutability The degree to which people have alternatives in accessing the resources a leader controls. 416
Substitutes Situational characteristics that reduce the importance of the leader while simultaneously providing a direct benefit to employee performance. 464
Substitutes for leadership model A model that suggests that characteristics of the situations can constrain the influence of the leader, which makes it more difficult for the leader to influence employee performance. 464–466
Supervision satisfaction Employees’ feelings about their boss, including his or her competency, communication, and personality. 96, 97
Surface-level diversity Diversity of observable attributes such as race, gender, ethnicity, and age. 355
Survivor syndrome, 77–78
Suspension, 238
Sustainability culture A specific culture type focused on promoting sustainability both inside and outside of the organization. 516–517
Symbols The images an organization uses, which generally convey messages. 511
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Synergy, 376–378, 392, 393
Systems monitoring, 384
T Tacit knowledge Knowledge that employees can only learn through experience. 235–236
Tardiness, 72
Task complexity The degree to which the information and actions needed to complete a task are complicated. 172
Task conflict Disagreements among members about the team’s task. 385
Task coordinator activities Boundary- spanning activities that are intended to coordinate task-related issues with people or groups in other functional areas. 382
Task interdependence The degree to which team members interact with and rely on other team members for information, materials, and resources needed to accomplish work for the team. 345–348, 349
Task performance Employee behaviors that are directly involved in the transformation of organizational resources into the goods or services that the organization produces. 31–35
adaptive, 32 creative, 32–33 employee task performance levels, 70–72 job analysis and, 33–34 Leading in a Hostile Environment (case),
546–548 organizational culture and, 528–529 Reenergizing Employees After a Downsizing
(case), 540–542 routine, 32
Task strategies Learning plans and problem-solving approaches used to achieve successful performance. 170
Taskwork processes The activities of team members that relate directly to the accomplishment of team tasks. 378–383
boundary spanning, 381–383 creative behavior, 378–380 decision making, 380–381
Team(s) Two or more people who work interdependently over some time period to accomplish common goals related to some task-oriented purpose. 338
characteristics of. See Team characteristics extent of use, 338–339 management teams, 339–340, 356–358 processes of. See Team processes
stages of development, 343–345 training, 395–397
Team building Fun activities that facilitate team problem solving, trust, relationship building, and the clarification of role responsibilities. 397
Team-building roles Behaviors that directly facilitate the accomplishment of team tasks. 351, 352
Team characteristics, 336–372
commitment and, 358–359 compensation and, 359–360 composition, 349–357 importance of, 358–359 in integrative model of OB, 9 interdependence, 345–349, 357,
358–360 performance and, 358–359 types of, 339–345, 357
Team composition The mix of the various characteristics that describe the individuals who work in the team. 349–357
diversity in. See Team diversity in integrative model of OB, 9, 358–359 member ability, 352–353 member personality, 353–354, 355–356 member roles, 350–352 team size, 356–358
Team diversity The degree to which team members are different from one another. 354–356
in integrative model of OB, 9 Managing Commitment in Demanding Jobs
(case), 543–545 multicultural teams, 356 multinational teams, 382 as team characteristic, 338–339
Team process training The use of team experiences that facilitates the team’s ability to function and perform more effectively as an intact unit. 396–397
Team processes, 374–409 The different types of activities and interactions that occur within a team as the team works toward its goals. 376
communication, 376, 386–389, 395 importance of, 392–395 in integrative model of OB, 9, 392–395 job performance and, 392–395 organizational commitment and, 392–395 process gain/loss and, 376–378 synergy in, 376–378, 392, 393 taskwork, 378–383
team states, 389–392 training teams, 395–397
Team states Specific types of feelings and thoughts that coalesce in the minds of team members as a consequence of their experience working together. 389–392
cohesion, 389–390, 391 mental models, 390–392 potency, 390 transactive memory, 392
Team task roles Behaviors that directly facilitate the accomplishment of team tasks. 351, 352
Team viability Team commitment; the likelihood a team can work together effectively into the future. 358
Teamwork processes The interpersonal activities that promote the accomplishment of team tasks but do not involve task accomplishment itself. 384–385
action, 384–385 interpersonal, 384, 385 transition, 384
Technology The method by which an organization transforms inputs to outputs. 490
e-mail, 343, 387 group decision support systems, 382 in mergers and acquisitions, 526 social networking systems, 49, 389 virtual teams and, 343
Telecommuting, 146
Teleological principles, 214
Telling When the leader provides specific instructions and closely supervises performance. 453–455
Theft Stealing company products or equipment from the organization. 41
integrity tests and, 289–291
Theory A collection of verbal and symbolic assertions that specify how and why variables are related, as well as the conditions in which they should (and should not) be related. 16–17
Time-driven model of leadership A model that suggests that seven factors, including the importance of the decision, the expertise of the leader, and the competence of the followers, combine to make some decision- making styles more effective than others in a given situation. 449–451
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Time pressure The sense that the amount of time allotted to do a job is not quite enough. 130
Training A systematic effort by organizations to facilitate the learning of job-related knowledge and behavior. 254
applying emotional intelligence in, 315 behavior modeling, 254 cross-training, 396 leadership training programs, 456, 466 in learning process, 254 organizational commitment and, 68 in stress management, 145, 146–147 team, 395–397
Trait(s) Recurring trends in people’s responses to their environment. 266
leader emergence and effectiveness, 446–447
Trait activation The degree to which situations provide cues that trigger the expression of a given personality trait. 286–287
Transactional contracts Psychological contracts that focus on a narrow set of specific monetary obligations. 79
Transactional leadership A pattern of behavior where the leader rewards or disciplines the follower based on performance. 457, 458
Transactional theory of stress A theory that explains how stressful demands are perceived and appraised, as well as how people respond to the perceptions and appraisals. 127–140
Managing Commitment in Demanding Jobs (case), 543–545
primary appraisal, 127–132 secondary appraisal, 132–133 types of stressors, 128–132
Transactive memory The degree to which team members’ specialized knowledge is integrated into an effective system of memory for the team. 392
Transfer of training Occurs when employees retain and demonstrate the knowledge, skills, and behaviors required for their job after training ends. 254
Transformational leadership A pattern of behavior where the leader inspires followers to commit to a shared vision that provides meaning to their work while also serving as a role model who helps followers develop their
own potential and view problems from new perspectives. 456–461
components of, 458–460 of U.S. presidents, 460–461, 462
Transition processes Teamwork processes, such as mission analysis and planning, that focus on preparation for future work in the team. 384
Transportable teamwork competencies Team training that involves helping people develop general teamwork competencies that they can transport from one team context to another. 395–396
Trivial Pursuit (game), 313, 353
Trust, 194–230 The willingness to be vulnerable to an authority based on positive expectations about the authority’s actions and intentions. 196–197
affect-based, 197, 198, 201–202 citizenship behavior and, 218 cognition-based, 197, 198, 199–201, 215–216 in corporate social responsibility, 219 disposition-based, 197–199, 215 ethics and, 197, 208–215 importance of, 196–197, 217–219 in integrative model of OB, 8, 217–219 job performance and, 218 justice and, 8, 197, 203–208 Leading in a Hostile Environment (case),
546–548 organizational commitment and, 217–219 types over time, 203 variations in, 197
Trust propensity A general expectation that the words, promises, and statements of individuals can be relied upon. 197–199
assessing, 199 by nation, 200
Trustworthiness Characteristics or attributes of a person that inspire trust, including competence, character, and benevolence. 199–201
Turnover, 62, 66–68, 74, 77–79, 81
Type A Behavior Pattern People who tend to experience more stressors, appraise more demands as stressful, and be prone to experiencing more strains. 137–139, 274
Type B Behavior Pattern, 140, 274
Typical performance Performance in the routine conditions that surround daily job tasks. 285–287
U Uncertainty avoidance The degree to which a culture tolerates ambiguous situations (low uncertainty avoidance) or feels threatened by them (high uncertainty avoidance). 281–283
Understanding and adaptation The final stage of socialization, during which newcomers come to learn the content areas of socialization and internalize the norms and expected behaviors of the organization. 522–523
Use of emotions The degree to which people can harness emotions and employ them to improve their chances of being successful in whatever they are seeking to do. 314–315
Utilitarianism, 214
V Valence The anticipated value of the outcomes associated with successful performance. 166–168, 180
Validity, 22
Value in diversity problem-solving approach A theory that supports team diversity because it provides a larger pool of knowledge and perspectives. 354
Value-percept theory A theory that argues that job satisfaction depends on whether the employee perceives that his or her job supplies those things that he or she values. 94–103
Values Things that people consciously or unconsciously want to seek or attain. 94
commonly assessed, 95 cultural. See Cultural values espoused, 511, 513–514 job satisfaction and, 94–109 organizational culture and, 522–523, 528 in value-percept theory, 94–98
Variable interval schedule Reinforcement occurs at random periods of time. 238, 239
Variable ratio schedule Behaviors are reinforced after a varying number of them have been exhibited. 239
Variety The degree to which a job requires different activities and skills. 100
Veiled purpose tests Integrity tests that do not directly ask about dishonesty, instead assessing more general personality traits associated with dishonest acts. 288–290
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Verbal ability Various capabilities associated with understanding and expressing oral and written communication. 307–309
Verbal persuasion Pep talks that lead employees to believe that they can “get the job done.” 165
Vicarious experiences Observations of and discussions with others who have performed some work task. 165
Virtual teams A team in which the members are geographically dispersed, and interdependent activity occurs through e-mail, web conferencing, and instant messaging. 343
Virtue ethics, 214
Visibility How aware others are of a leader and the resources that leader can provide. 416
Visual color discrimination, 319, 320
Visualization, 309, 310
Voice When an employee speaks up to offer constructive suggestions for change, often in reaction to a negative work event. 37–38, 70
Volunteering The giving of time or skills during a planned activity for a nonprofit or charitable group. 69
W Wasting resources Using too many materials or too much time to do too little work. 41
Wheel network structure, 388
Whistle-blowing When employees expose illegal actions by their employer. 210
Wide/flat span of control, 484–486
Withdrawal behavior Employee actions that are intended to avoid work situations. 62, 69–75
employee task performance levels, 70–72 physical, 72–75 psychological, 72, 73, 74–75 quitting, 74 reactions to negative work events, 70 strategies to reduce, 81
Women
diversity of workforce, 75 powerful, list of, 414 relative compensation of, 205 sexual harassment and, 42, 516
Wonderlic Cognitive Ability Test A 12-minute test of general cognitive ability used to hire job applicants. 323–325
Work complexity The degree to which job requirements tax or just exceed employee capabilities. 130
Work-family conflict A form of role conflict in which the demands of a work role hinder the fulfillment of the demands in a family role (or vice versa). 131
Work responsibility The number and importance of the obligations that an employee has to others. 130–131
Work specialization The degree to which tasks in an organization are divided into separate jobs. 483–484
Work teams A relatively permanent team in which members work together to produce goods and/or provide services. 339, 340
Written comprehension, 307, 309
Written expression, 308, 309
Y Y network structure, 388
Z Zero acquaintance Situations in which two people have just met. 271–272
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Name Index
A Abel, R., 427 Abele, A. E., 191 Abraham, L. M., 297 Abrahm, S., 154 Abush, R., 156 Adams, A., 350 Adams, E., 473 Adams, G. L., 437 Adams, J. S., 175, 176, 190, 191, 204, 225 Adams, R., 472 Aditya, R. N., 472 Adler, A. B., 334 Adler, S., 301 Aesop, 43 Aguinis, H., 10, 54, 174, 187 Ahearne, M., 55, 478 Ahrendts, A., 414–415 Aiken, L. S., 27 Aiman-Smith, L., 193, 537 Albright, L., 296 Alderfer, C. P., 167, 189 Alexander, H., 485 Alexander, S., 229 Alge, B. J., 173 Allan, B., 262 Allen, D., 57 Allen, D. G., 85, 89, 334 Allen, J. A., 367 Allen, N. J., 66, 85 Allen, T. D., 55, 154, 158, 539 Alliger, G. M., 253, 261 Allison, W., 298 Allport, G. W., 295 Alter, A., 259 Alterman, T., 152, 157 Alutto, J. A., 371 Amabile, T. M., 53, 507 Ambrose, M. L., 227, 229, 259 Amos, D., 449 An, S., 250 Ancona, D. G., 404 Anderson, N. R., 539 Anderson, R., 526 Anderson, R. D., 477 Andersson, L. M., 56 Andrews, A. O., 26 Ang, S., 308, 471 Anthony, W. P., 258 Aparna, J., 368–369 Aquino, K., 52, 229 Arad, S., 33, 53 Aristotle, 101 Armenakis, A., 157 Armour, S., 56 Armstrong, L., 26 Armstrong, P. I., 298
Armstrong, T., 301 Arndt, M., 437 Arthur, W., Jr., 405, 529, 536, 539 Arvey, R. D., 295, 297 Asendorpf, J. B., 297 Ash, M. K., 461 Ashford, S. J., 538 Ashforth, B. E., 85, 260, 435 Ashkanasy, N. M., 121 Ashton, M. C., 302 Atanasoff, L., 299 Atinc, G., 438 Atkinson, W., 159 Audia, P. G., 174 Auriemma, G., 31 Austin, E. J., 331–332 Austin, N. K., 158 Averbrook, J., 261 Avila, R. A., 55 Avolio, B. J., 445, 475–478 Ayman, R., 364
B Baas, M., 121 Babcock, P., 536 Bacharach, S. B., 437 Bachiochi, P. D., 114, 122 Bachrach, B. G., 408 Bachrach, D. G., 55, 465, 476 Bacon, F., 16, 26 Baer, M., 53 Bailey, D. E., 340, 364 Bailey, S., 535 Baillien, E., 57 Baird, B. M., 269 Bakker, A. B., 120, 188 Bal, P. M., 89 Baldwin, T. T., 122 Ballard, T. N., 409 Balliet, D., 439 Ballinger, G. A., 471 Balzer, W. K., 114, 122 Bamberger, P. A., 156, 259, 408 Bandura, A., 165, 188, 259 Banks, G. C., 438 Barbee, A. P., 302 Barber, A. E., 539 Barger, D., 530 Barkema, H. G., 371 Barksdale, K., 229 Barling, J., 478 Barnes, C. M., 405 Barney, J. B., 26 Baron, J., 248 Baron, M., 383 Bar-On, R., 330 Baron, R. A., 121, 437 Barra, M., 414, 443, 444, 447, 449, 456,
468–469, 497, 523
Barrett, A., 190 Barrick, M. R., 286, 296–298, 300, 301, 367,
368, 408, 537 Barron, L. A., 189 Barros, E., 121 Barry, B., 368, 440 Barside, S. G., 331 Barsky, A. P., 297 Bartol, K. M., 192 Barton, K., 88 Bashshur, M. R., 54 Bass, B. M., 445, 458, 474, 475 Bastian, E., 509, 533 Batali, M., 234 Bates, S., 225 Batty, G. D., 330 Bauer, T. N., 122, 471, 537 Baum, M., 245 Bazerman, M. H., 439 Beach, D., 201 Beal, D. J., 121, 407 Bear, J. B., 406 Beatty, R. W., 47, 58 Beaubien, J. M., 259–260 Bebeau, M. J., 229 Becker, H. S., 85 Becker, T. E., 499 Becker, W. S., 189 Bedeian, A. G., 157 Beehr, T. A., 78 Beersma, B., 365, 439 Beethoven, L. van, 320 Begley, S., 25 Behfar, K., 356 Behfar, K. J., 405 Behr, P., 408 Belkin, L. Y., 225 Bell, B., 409 Bell, B. S., 371, 405 Bell, M. P., 370 Bell, S. T., 300, 367, 529, 539 Bellman, G., 402 Bellstrom, K., 414 Belohlav, J. A., 300 Ben-Menahem, S. M., 403 Benne, K., 352, 367 Bennett, D., 533 Bennett, R. J., 41, 56 Bennett, W., Jr., 253, 261 Bensinger, G., 536 Benson, H., 146 Benson, L., 227, 440 Beranek, P. M., 406 Berfield, S., 228, 437, 535 Berg, P., 129 Berger, B., 250 Bergey, P. K., 193 Bergman, M. E., 536 Berkowitz, L., 225
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Berman, D., 409 Bernardin, H. J., 302, 440 Bernieri, F., 329 Berns, G., 119 Bernstein, E., 434 Berry, C. M., 286, 302, 334 Berry, J. W., 53 Betof, E., 437 Beubien, J. M., 408 Beus, J. M., 536 Beyer, J. M., 534 Bezos, J., 46, 411 Bhaskar-Shrinivas, P., 134 Bhatia, P., 476 Bhave, D. P., 57, 369 Bhawuk, D. P. S., 437–438 Biberman, G., 438 Biddle, B. J., 366 Bies, R. J., 204, 226 Bigman, D., 506 Bing, M. H., 437 Birjulin, A., 438 Birk, S., 535 Birkeland, S. A., 302 Biron, M., 159, 259 Birtch, T. A., 40 Black, C., 331–332 Black, J. S., 78, 134, 300, 538 Blanchard, K. H., 455, 474 Blank, W., 474 Blau, G., 87 Blau, P., 229 Blickensderfer, E., 409 Bliese, P. D., 152, 298 Bligh, M. C., 476 Bloom, R., 221–222 Bluedorn, A. C., 505 Blume, B. D., 55 Blumenthal, K., 475 Bobocel, D. R., 167, 189 Bock, L., 186, 187 Bogg, T., 295 Bohte, J., 504 Boisner, A., 537 Bolch, M., 372 Boles, J. S., 154 Bolger, N., 297 Bolino, M. C., 55 Bommer, W. H., 471, 477, 478 Bonaccio, S., 406 Bond, M. H., 282, 299 Boning, B., 364 Bono, J. E., 111, 121, 296, 297, 447, 475, 477 Boodoo, G., 329 Borgen, F. H., 299 Borman, W. C., 53, 54, 286 Borman, W. S., 333 Bormann, C. A., 438 Bornstein, B. H., 403 Bosco, F., 334 Boswell, W. R., 153, 157, 322, 333 Bouchard, T. J., Jr., 295, 297, 329
Boudreau, J. W., 153, 157, 322, 333 Bou-Llusar, J. C., 259 Bourdain, A., 245 Bourgeois, L. J., 438 Boussebaa, M., 506 Bowen, D. E., 478, 535 Bowers, C., 260 Bowler, W. M., 57 Bowling, N. A., 119 Boykin, A. W., 329 Boyle, M., 506 Bozell, D., 409 Bozionelos, N., 407 Brackett, M. A., 329 Bradlee, B., Jr., 383 Bradley, B. H., 405, 408 Bradley, J. C., 297, 298, 536 Brady, D., 473 Brahy, S., 525 Brand, P., 21 Brannick, M. T., 98, 119, 302 Braun, M. T., 403 Bravo, J., 89 Breaugh, J. A., 119 Breaux, D. M., 227 Brégier, F., 487 Brehmer, B., 367, 404 Breinin, E., 477 Brennan, B., 448 Brett, J., 356 Brett, J. F., 242 Bretz, R. D., 322, 333 Brief, A. P., 121 Brin, S., 310 Briner, R. B., 27 Brinker, N., 461 Brinkmann, J., 259 Brinkmann, U., 284 Brito, C., 526 Brockmann, E. N., 258 Brockner, J., 188, 206, 226, 261, 499, 507 Brodbeck, F. C., 459 Broden, J., 24 Brody, N., 329 Brooks, H., 166 Brothen, T., 329–330 Brouer, R. L., 437, 471 Brown, D. J., 57 Brown, J., 341 Brown, K. G., 189, 367, 405 Brown, M. E., 228 Brown, T. J., 536 Bruch, H., 367, 505 Brunner, R., 474 Bryan-Low, C., 437 Bryant, A., 472, 473, 535 Bryant, D., 449 Bryant, F. B., 156 Bryant, P. C., 85 Buchko, A. A., 117 Buchtel, E. E., 299 Buckman, B. R., 156
Buderi, R., 419 Buffett, W., 117, 246 Buford, B., 234, 258 Bunch, J., 434 Bunderson, J. S., 191 Bunker, B. B., 203, 224 Burak, O., 54 Burchell, M., 119 Burke, C. S., 409 Burke, M. E., 145, 157 Burke, M. J., 407, 536 Burkhead, E. J., 156 Burkus, D., 362 Burnett, D. D., 301 Burnfield, J. L., 472 Burns, C., 88 Burns, L. M., 474 Burns, L. R., 506 Burns, T., 489 Burns, U., 240, 241 Burris, E. R., 54, 87 Burris, L. R., 302 Burt, R. S., 223 Burton, J. P., 86 Burton, K., 257 Burtt, H. E., 473 Bush, G. W., 460 Bush, M. C., 14, 26 Buss, A. H., 22 Butterfield, K. D., 228 Butts, M. B., 158 Butts, M. M., 154 Byham, W. C., 259 Byland, A., 25 Byosiere, P., 136, 155 Byrne, D., 369 Byrne, J. A., 49 Byrne, Z. S., 167, 189 Byrnes, N., 89 Byron, K., 406–407
C Cable, D. M., 95, 118, 537, 538 Cacioppo, J. T., 121 Caldwell, D. F., 528, 534 Call, M. L., 54 Callahan, C., 302 Callister, R. R., 537 Camara, W. J., 332 Camerer, C., 223 Cameron, K. S., 440 Campbell, D. P., 299 Campbell, D. T., 27 Campbell, J. P., 26, 53, 299, 334 Campbell, S. M., 83 Campion, M. A., 88, 120, 346, 358, 371, 395,
409, 505, 507 Can, O., 300 Canella, A. A., Jr., 369 Canner, N., 434 Cannon, W. B., 155 Cannon-Bowers, J. A., 260, 408, 409
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Caplan, R. D., 154 Cappelli, P., 89 Capps, M. H., 302 Carell, S., 245 Carey, S., 409, 533 Carlson, N., 333 Carr, D., 332 Carr, J. C., 227 Carroll, A. B., 229–230 Carroll, J. B., 330 Carson, J. B., 404 Carson, K. D., 431 Carson, K. P., 122 Carson, P. P., 431 Carton, A. M., 370 Caruso, D. R., 330–331 Cascio, W. F., 88 Casper, W. J., 154, 158 Cassidy, J., 257 Castro, S. L., 440 Cattell, R. B., 330 Cavanaugh, M. A., 153, 157 Ceci, S. J., 329 Cellar, D. F., 298 Cellitti, D. R., 56 Ceranic, T. L., 229 Chamberlin, M., 54 Chambers, T., 516 Chamerlain, K., 153 Chang, C., 438 Chang, W. W., 409 Chao, G. T., 403, 522, 538 Chao, M. M., 308 Chaplin, C., 484 Chastain, J., 451 Chatman, J. A., 528, 534, 537 Chavez, C., 436 Chazelle, D., 272 Chemers, M. M., 364 Chen, C. C., 121, 299, 419 Chen, Y., 57, 299 Chen, Y. R., 419 Chen, Z., 54 Chen, Z. X., 476 Cheong, M., 418, 436 Cherniss, C., 331 Chernyshenko, O. S., 296 Cherrington, D., 87 Chesky, B., 530 Chess, W. A., 156 Chiaburu, D. S., 87 Chiang, F. F. T., 40 Chien Farh, C. I. C., 331 Child, J., 504 Childress, J., 511–512 Chiocchio, F., 406 Chiu, C., 250 Chiu, C. Y., 299 Cho, S., 250 Chouinard, Y., 517 Christal, R. E., 295 Christian, J., 439
Christian, M. S., 536 Christiansen, N. D., 78, 302, 303 Chua, R. Y. J., 419 Church, A. H., 118 Churchill, W., 485 Cialdini, R., 417 Clarke, S., 536 Clason, P., 332 Clayton, L. D., 364 Clegg, C. W., 365 Clinton, W. J., 462 Clore, G., 369 Cockburn, B., 155 Cohen, B., 81 Cohen, J., 27, 295 Cohen, K., 192 Cohen, P., 27 Cohen, R. R., 407 Cohen, S., 154, 156 Cohen, S. G., 340, 364, 365 Cohen-Charash, Y., 182, 192, 226 Colarelli, S. M., 322, 333 Colbert, A. E., 189, 408, 447 Cole, M. S., 331, 367 Colella, A., 191 Coleman, V. I., 54 Colligan, M., 152, 157 Collins, J., 505 Collins-Nakai, R., 88 Colquitt, J. A., 53, 182, 192, 218, 226, 227,
253, 261, 298, 300, 333, 404, 476 Colvin, G., 534, 537 Comer, D. R., 367–368 Concalo, J. A., 408 Conger, J. A., 475 Conlin, M., 89, 507 Conlon, D. E., 182, 192, 226, 261, 405–406, 440 Conte, J. M., 332 Conti, R., 507 Converse, S. A., 408 Cook, T., 414–415, 418, 481, 502–503 Cook, T. D., 27 Cooke, D. K., 302 Coon, H. M., 299 Coons, A. E., 473 Cooper, C. L., 156, 157 Cooper, E. A., 177, 191 Cooper, H., 297 Cooper, W. H., 87 Cooper-Hakim, A., 111, 122, 286, 300 Copeland, R., 257 Copper, C., 407 Corkery, M., 52–53 Corley, K. G., 85 Corner, P., 538 Cortina, J. M., 303 Costa, P. T., Jr., 267, 295, 296 Costanza, D. P., 309, 319, 329 Costner, K., 311 Costolo, D., 513 Cote, S., 331 Cotton, J. L., 157, 435
Cottrell, J. M., 329 Couch, L. L., 224 Courtright, S. H., 358, 366 Covey, S. M. R., 228 Cowie, H., 57 Cox, C., 491 Cox, T., 369, 382 Coy, P., 88, 226 Crane, A., 214 Crawford, E. R., 152–153, 156, 188, 391,
476, 477 Crede, M. A., 333 Crenshaw, E., 117 Criqui, M. H., 296 Cropanzano, R., 120, 167, 189, 438,
440, 488 Crouter, A., 154 Cruise, T., 307, 309 Csikszentmihalyi, M., 120 Cullen, J. B., 200, 313, 321 Cullen, M. J., 300 Cumberbatch, B., 485 Cummings, J. N., 370 Cummings, L. L., 168 Cunningham, C. R., 157 Cunningham, D. A., 156 Cunningham, M. R., 302 Cunningham-Snell, N. A., 539
D Daft, R. L., 406 Dahm, P. C., 154 Dai, G., 499, 507 Dalal, R. S., 55, 111, 121 Dalessio, A., 122 Dalio, R., 233, 256–257 Damon, M., 451 Dance, C., 485 Dane, E., 260 Daniel, T. A., 57 Daniels, C., 155 Dansereau, F., Jr., 371, 470 Dao, D., 532–533 Darrat, M., 438 Daus, C. S., 121 Davenport, R., 407 Davenport, T. H., 27 Davies, M., 331 Davis, G. F., 505 Davis, J. H., 198, 199, 203, 223 Davison, H. K., 303, 437 Dawis, R. V., 95, 118 Dawson, C., 26 Dawson, J. F., 518 Day, D. V., 471 De Chermont, K., 297 De Corte, W., 334 De Cuyper, N., 57 De Dreu, C. K. W., 121, 366, 369, 370, 405, 439 De Lange, A. H., 89 De Meuse, K. P., 340, 371 De Vries, T. A., 404
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571 Name Index
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De Wit, F. R. C., 405 De Witte, H., 57 Deal, T. E., 534 Dean, M. A., 332 Dean, R. A., 322, 333 Dearborn, M. J., 156 Deary, I. J., 330 Deaton, A., 122 DeBord, M., 469 Debow, D., 184 DeCarlo, S., 26 DeChurch, L. A., 405, 406 Deci, E. L., 167, 189, 191 Defrank, R. S., 155 DeGeest, D. S., 367 DeGrassi, S. W., 301 Delaney, K. J., 505 Delbecq, A. L., 366, 403 Delery, J. E., 89 Delongis, A., 155 DeMatteo, J. S., 371–372 DeMeuse, K. P., 499, 507 Den Hartog, D. N., 471 Denes-Raj, V., 248 DeNeve, K. M., 297 DeNisi, A. S., 58 Denniston, A., 485 Denyer, D., 27 DePass, D., 151 Derks, D., 120 DeRue, D. S., 405, 471 Derven, M., 506 Dessler, G., 89 Detert, J. R., 87 Detterman, D. K., 332 Deutsch, M. A., 366, 372 Devine, D. J., 364, 367 Devine, K., 88 DeVore, C. J., 57, 439 Dewe, P. J., 156 Diamond, S., 403 Dickerson, T., 254 Dickter, D. N., 322, 333 Diefendorff, J. M., 121 Diehl, M., 403 Diener, E., 107, 113, 120, 121, 297 Dierdorff, E. C., 300 Digman, J. M., 295 Dilchert, S., 302–303 Dimotakis, N., 330 Dineen, B. R., 225 D’Innocenzo, D., 407 Dirks, K. T., 218, 229 Dishan, K., 407 Dixon, P., 301 Doheny, K., 159 Dolan, S., 407 Donaldson, T., 227–228 Donnellan, M. B., 269 Donovan, A., 61 Donovan, J., 427 Donovan, J. J., 190
Donovan, M. A., 33, 53 Dorfler, V., 262 Dorfman, P. W., 299, 459, 477–478 Dorgan, B. L., 397, 409 Dotlich, D., 409 Doty, D., 405 Douglas, C., 422, 437 Douma, B., 229 Doverspike, D. D., 298, 529, 539 Drach-Zahavy, A., 436 Drasgow, F., 105 Drexler, M., 452 Driskell, J. E., 409 Drucker, P. F., 57, 58 Du Gay, P., 536 Duckworth, A., 287 Duckworth, H., 365 Duffy, M. K., 52, 57, 227 Duffy, R. D., 191 Duke, A. B., 437 Dulebohn, J. H., 471 Dunbar, R., 491, 505 Duncan, T. E., 168 Dunfee, T. W., 227–228 Dunford, B. B., 364 Dunkel-Schetter, C., 155 Dunne, M., 525 Durham, C. C., 192 Dutton, J. E., 120 Dvir, T., 478 Dvorak, P., 436, 505 Dworkin, T. M., 228 Dwoskin, E., 226 Dwyer, P., 382
E Earley, P. C., 174, 226, 299–300, 308, 366 Easterbrook, S., 486 Eastwood, C., 36 Eby, L. T., 297, 371–372, 539 Eckart, A., 36 Eddy, E. R., 405 Eden, C., 262 Eden, D., 478 Edison, T., 29 Edmonds, G. W., 295 Edmondson, A., 407 Edmondson, G., 298, 525 Edwards, C., 26 Edwards, J. R., 95, 118, 152, 154, 405–406, 537 Egan, T. M., 537 Ehrhart, M. G., 515, 535, 536 Eichenwald, K., 400 Einarsen, S. S., 57 Eisenberger, R., 89 Eisenhardt, K. M., 438 Eisenhower, D. D., 457 Eissa, G., 52 Eldam, M., 26 Eldridge, L. D., 152 Eliison, S., 259 Ellis, A. P. J., 404, 409
Ellison, L., 461 Ells, S., 484 Emerson, R. M., 435 Emo, A. K., 330 Engardio, P., 382 Engelbert, C., 414 Ensari, N., 439 Epitropaki, O., 471 Epstein, S., 248 Epstein, T., 265, 293 Erden, Z., 403 Erdogan, B., 122 Erez, A., 53, 57, 111, 121, 298, 333 Erez, M., 68, 86, 173, 174, 190, 403, 408 Ergen, C., 428 Erickson, E. H., 224 Ericsson, A., 235 Ericsson, K. A., 258 Essens, P. J. M. D., 404 Esser, J., 408 Eucker, T. R., 258 Euwema, M. C., 406 Evers, A., 439 Ewen, R., 369 Ewing, J., 539 Exner, J. E., Jr., 224
F Fairchild, C., 536 Fairclough, S., 506 Falbe, C. M., 431, 435, 437 Fandt, P. M., 438 Farace, R. V., 407 Farahani, G., 99 Farh, C. I., 54 Farh, J. L., 54, 308 Farnham, A., 330 Farrell, D., 85, 86–87 Farrell, M., 525 Farrelly, D., 331–332 Fatimah, S., 57 Favre, B., 137 Favreau, J., 71 Fehrenbacher, K., 25 Feist, G. J., 298 Feldman, D. C., 86, 154 Felps, W., 86 Fenigstein, A., 22 Ference, R., 408 Fern, E. F., 55 Fernandez, C. F., 474 Ferrin, D. L., 218, 229 Ferris, D. L., 57 Ferris, G. R., 120, 422, 436–438, 471 Festinger, L., 407 Fetter, R., 55–56, 477 Fichman, M., 87 Field, R. H. G., 472 Fields, D., 261–262 Fields, M., 497 Finkelstein, S., 461 Finn, R. H., 191
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Fiorina, C., 500 Firestone, I. J., 229 Fisher, A., 87, 88, 89, 331, 365 Fisher, C. D., 537 Fisher, D. M., 405 Fisher, R., 428, 439–440 Fishman, C., 362 Fitzgerald, M. P., 104, 120 Flaherty Manchester, C., 154, 158 Fleeson, W., 294 Fleisher, L., 439 Fleishman, E. A., 309, 319, 329, 332, 473 Flint, J., 85 Floor, L., 473 Florey, A. T., 370 Florida, R., 53 Fogli, L., 300 Foldes, H. J., 477 Folger, R., 225–226, 227 Folkman, S., 152, 155 Ford, H., 483 Ford, M. T., 153 Forsyth, D. R., 438 Foulk, T., 57 Foulkes, H., 414 Foust, D., 537, 538, 539 Fowlkes, J. E., 409 Fox, J., 27 Franklin, B., 196 Frauenheim, E., 86, 155, 223, 227, 301 Frazier, M. L., 57 Frei, R. L., 296 Freidberg, J., 54 Freidberg, K., 54 French, J. R. P., Jr., 154, 435 Frese, M., 158 Frey, M. C., 332 Fried, Y., 120 Friedman, H. S., 296 Friedman, L., 475 Friedman, M., 155–156, 297 Friedman, R. H., 138 Friedman, T. L., 10 Frink, D. D., 422, 437–438 Frommer, D., 26 Frone, M. R., 154, 227 Fry, E., 222, 414 Fry, L., 537 Fry, M., 506 Fu, P. P., 86, 419 Fugate, M., 538 Fuhrmans, V., 539 Fujita, F., 297 Fuller, B., 438, 461 Fulmer, A., 440 Fulmer, I. S., 26, 192, 300, 367 Funder, D. C., 294 Furnham, A., 286, 300 Fusilier, M. R., 156 Fussman, C., 469 Futrell, D., 340, 371
G Gabarro, J. J., 224–225 Gabriel, A. S., 57 Gaertner, S., 72, 87, 88 Gaines, J., 537 Galbraith, J., 168, 496 Gallagher, L., 535, 539 Gallagher, P., 294 Galton, F., 330 Gandolfi, F., 506 Ganster, D. C., 154, 156 Garabedian, M., 383 Gardner, H., 330, 516 Gardner, H. K., 377 Gardner, P. D., 522, 538 Gardner, W. L., 298 Garland, H., 261 Garvin, D. A., 473 Garza, A. S., 404 Gates, B., 186 Gaudiosi, J., 505 Gavin, J. H., 370 Gavin, M. B., 229 Gebert, D., 369, 370 Geider, S., 227 Gelfand, M. J., 86, 308, 440 Gellar, A., 301 Gelles, D., 259 Gent, C., 420 George, J. M., 53, 298 Gerdes, L., 87, 192, 539 Gerhardt, M. W., 296, 447 Gerhart, B., 26, 88, 189, 192 Gerras, S. J., 536 Gersick, C. J. G., 366 Gerstner, C. R., 471 Geschka, H., 403 Giacalone, R. A., 227 Gibson, C. B., 174, 299–300 Gibson, R., 539 Gibson, W. M., 98, 119 Gigerenzer, G., 248 Gilbert, D., 536 Gilbreth, F. B., 119 Gill, C. M., 267 Gillan, K., 521 Gillenwater, P., 539 Gilliland, S. W., 227, 303 Gilmore, D. C., 437–438 Gilson, L. L., 365 Gist, M. E., 165, 188, 478 Gladwell, M., 25, 235, 505 Glanzer, M., 407 Glaser, R., 407 Glazer, E., 537, 538 Glenn, J., 311 Glibkowski, B. C., 89 Glick, W. H., 505 Glomb, T. M., 121, 154, 227, 369 Gobeli, D. H., 506 Godinez, V., 365
Goff, S., 333 Goffee, R., 515, 535 Goffin, R. D., 302 Gogus, C. I., 538 Gold, R., 536 Goldbacher, E., 168 Goldberg, A., 538 Goldberg, L. R., 267, 295–296 Goldenhar, L., 152, 157 Goldman, B. M., 440 Goldstein, D. L., 155 Goldstein, H. W., 537 Goldstein, M., 257 Goldstein, N. B., 303 Goleman, D., 330 Gomez, S., 245 Gonzalez-Mule, E., 54, 155, 333, 367 Gonzalez-Roma, V., 188, 534 Good, L., 414 Goode, M., 485 Gooding, R. Z., 371, 505 Goodstein, J., 225 Gopinath, C., 507 Gordan, J., 364 Gore, B., 487 Gosling, R., 272 Gosling, S. D., 295, 296 Gottfedson, L. S., 330 Goudreau, J., 158 Gouran, D., 407–408 Graeff, C. L., 474 Graen, G. B., 445, 470, 471 Graf, A. B., 537 Grand, J. A., 403 Grant, A., 524 Grant, A. M., 53, 119 Grant, S., 301 Gravelle, M., 538 Graziano, W. G., 296 Green, H., 58, 168, 436 Green, S. G., 471, 474 Greenbaum, R. L., 52 Greenberg, J., 191, 208, 224, 226, 227 Greene, E., 403 Greenfeld, K. T., 474 Greenfield, J., 81 Greenfield, R., 434 Greenwood, R., 506 Greer, J. L., 405 Greer, L. L., 405–406 Griffeth, R. W., 72, 87, 88, 89 Griffeth, T. L., 439 Griffin, J., 450 Grizzle, J. W., 536 Groden, C., 83 Groszkiewicz, D., 504 Groth, A., 434, 436 Grove, A., 415 Grow, B., 86, 230 Grubb, P., 152, 157 Gruen, R. J., 155
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Gruenfeld, D. H., 369 Gubbins, E., 538 Guerrero, L., 507 Guillaume, Y., 471 Gully, S. M., 408 Gunther, M., 230, 539 Gupta, B., 180 Gupta, N., 88, 89 Gupta, S., 356 Gupta, V., 299, 459 Gurin, G., 473 Guzzo, R. A., 366, 408
H Hachiya, D., 87 Hackett, R. D., 476 Hackman, J. R., 105, 119, 191, 365, 371, 402,
504, 506 Haga, W. J., 470 Hagafors, R., 367, 404 Hagmaier, T., 191 Haigh, J., 539 Hair, E. C., 296 Hakanen, J. J., 158 Halbesleben, J., 158 Halfhill, T., 365 Hall, E., 369 Hall-Merenda, K. E., 476 Halpern, D. F., 329 Halpin, A. W., 473 Halvorson, T., 400 Hamblin, R. L., 372 Hamilton, A., 152, 157 Hamm, J., 507 Hamm, S., 192, 230, 496 Hammond, G. D., 119 Han, S., 418, 436 Han, Y., 505 Hancock, J. L., 216 Haneberg, L., 53 Hanges, P. J., 299, 459 Hanig, S., 57 Hanisch, K. A., 122 Hanks, T., 36, 427, 521 Hansen, F., 26, 27, 192, 226 Hansson, M., 506 Haran, C., 155 Hargadon, A., 403 Harkins, S. G., 372, 402–403 Harman, W. S., 86 Harms, P. D., 295 Harper, D., 56 Harrell, J., 129 Harris, B. T., 419 Harris, E. F., 473 Harris, J. A., 475 Harris, M., 356 Harris, M. J., 329 Harris, M. M., 301–302 Harris, V. A., 261 Harrison, A., 311
Harrison, D. A., 78, 87, 111, 122, 134, 228, 259, 322, 333, 368, 370
Harrison, R. V., 154 Harrison, S. H., 85 Hartel, C. E. J., 121 Harter, J. K., 188 Hartigan, J. A., 334 Hartley, E., 473 Hartnell, C. A., 535, 538, 539 Hartung, A., 533 Harvey, J., 55 Hass, M. R., 365 Hastings, J. E., 156 Hastings, R., 512 Hastings, S. E., 56 Hatfield, E., 121 Hauge, L. J., 57 Haugland, S. N., 301 Hauser, S. G., 227 Havlovic, S. J., 133, 155 Hayashi, A. M., 260 Hayes, T. H., 188 Haynes, D., 297 Hazelwood, J., 250 Hechanova, R., 78 Hecker, D., 58 Hedlund, J., 367, 404 Heim, J., 32 Heine, S. J., 299 Hekman, D. R., 86 Heller, D., 297 Helm, B., 224 Hempel, J., 535 Hempel, P. S., 505 Hemphill, J. K., 473 Henderson, A. A., 153 Henderson, N., 135, 146 Hengchen, D., 157 Henle, C. A., 10, 174, 227 Henneman, T., 189 Henson, T., 311 Herscovitch, L., 85, 111, 122, 182, 253, 261,
465, 477 Hersey, P., 455, 474 Herzberg, F., 27 Hess, E. D., 316 Hessels, M., 534 Hewson, M., 414 Hezlett, S. A., 333, 539 Hickson, D. J., 436 Higgins, C. A., 296 Higgins, T., 538 Higgs, A. C., 358, 371 Hill, J. W., 88 Hinings, C. R., 436 Hirokawa, R., 407–408 Hirschman, A. O., 86 Hirst, G., 403 Ho, M., 261, 478 Hochschild, A. R., 120–121 Hochwarter, W. A., 422, 437, 438, 499, 507
Hodgkinson, G. P., 267 Hoever, I. J., 371 Hoffman, B. J., 83, 333 Hoffman, D., 71, 513 Hoffman, J., 157 Hoffman, L., 369 Hofmann, D. A., 157, 536 Hofstede, G., 40, 280, 281–283, 299 Hoft, S., 302 Hogan, J., 296 Hogan, R. T., 19, 294 Hogarth, R. M., 260 Hogg, M. A., 260 Hokonen, M., 365 Holcombe, K. M., 535 Holland, B., 296 Holland, J. L., 279–280, 298 Hollenbeck, J. R., 173, 190, 364, 365, 367, 370,
371, 382, 402, 404, 405, 409 Hollinger, R. C., 56 Hollingshead, A. B., 408 Hollweg, L., 56 Holmes, S., 230 Holmes, T. H., 132, 154 Holste, J. S., 261–262 Holt, J. L., 439 Holtom, B. C., 68, 86, 88 Holtz, B. C., 334 Hom, P. W., 86, 88 Homan, A. C., 369, 370 Homans, G. C., 191 Hong, Y., 250, 535 Hoobler, J. M., 154 Hope, B., 257 Hosford, C., 506 Hough, L. M., 286, 300 House, R. J., 153, 299, 459, 472, 476 Houston, G., 25 Howard, J. A., 260 Howard, J. H., 156 Howard-Grenville, J. A., 537 Howell, J. M., 476 Howell, J. P., 477–478 Hsieh, T., 411, 412, 413, 415, 418, 420–421, 434 Hsiung, H. H., 55 Hu, C., 227 Hu, J., 405, 535 Hua, W., 227 Huang, X., 54 Huang, Y., 419 Huber, G. P., 505 Huber, V. L., 259 Huff, C., 189 Huffington, A., 516 Hui, C. M., 261 Hui, W., 534 Hulin, C. L., 55, 85, 87, 118, 121, 227 Hull, C. L., 188 Humphrey, R. H., 331 Humphrey, S. E., 119, 366, 370, 371, 404, 471 Hunter, E. M., 158
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574 Name Index
coL27660_nidx_568-582.indd 574 11/03/17 01:16 PM
Hunter, J. E., 303, 322, 332, 333 Huntington, R., 89 Hurd, M., 500 Hurrell, J., Jr., 152, 157 Huselid, M. A., 13, 26 Hutchison, S., 89 Hymowitz, C., 504
I Ichniowski, C., 364 Idaszak, J. R., 105 Ihlwan, M., 26 Ihrig, M., 259 Ilgen, D. R., 53, 189, 286, 364, 370, 371, 382,
402, 404, 409 Ilies, R., 296, 300, 330, 447, 471, 473–474, 477 Imai, L., 308 Immelt, J., 51, 453, 455 Incalcaterra, K. A., 408 Ingrassia, P., 469 Ironson, G. H., 98, 119 Irwin, J. L., 114, 122 Isaacson, W., 475 Isen, A. M., 121 Ito, T., 511 Ivancevich, J. M., 155, 262, 364
J Jablin, F. M., 406 Jackson, C. L., 300, 394, 403, 404–405 Jackson, J. F., 54 Jackson, J. J., 295 Jackson, M., 87, 320 Jackson, P. R., 365 Jackson, S. A., 120 Jackson, S. E., 370 Jacobs, G., 499 Jacobs, R. R., 229 Jago, A. G., 472 James, B., 21 Jana, R., 539 Janard-hanan, N. S., 405–406 Jang, K. J., 475 Janis, I. L., 407 Jansen, P. G. W., 89 Jardine, L., 26 Jargon, J., 504 Jarmusch, J., 99 Javidan, M., 299, 459 Jayaratne, S., 156 Jehn, K. A., 405, 439 Jenkins, G., 93, 117 Jenkins, G. D., Jr., 88, 89 Jennings, K. R., 157 Jensen, M. A. C., 365 Jensen-Campbell, L. A., 296 Jermier, J. M., 465, 477, 478, 537 Jia, R. T., 54 Jiang, K., 535 Jimeno, D. I., 87 Jin, J., 331
Jobs, S., 457–458, 460, 481 Johansson, S., 71 John, O. P., 295 Johns, G., 85, 87 Johnson, A., 414 Johnson, A. M., 475 Johnson, C., 403 Johnson, D. E., 111, 121 Johnson, D. W., 372 Johnson, E. C., 529, 539 Johnson, G., 58 Johnson, J. J., 200, 313, 321 Johnson, K., 261, 311 Johnson, L. B., 462 Johnson, M. D., 300 Johnson, R., 372, 523–524 Johnson, R. A., 370 Johnson, R. C., 158 Johnson, R. E., 54, 57 Johnson, S. M., 122 Johnson, S. R., 152 Johnston, J., 152, 157 Jolie, A., 415 Jones, A. P., 156 Jones, E. E., 261 Jones, G., 515, 535 Jones, G. R., 530 Jones, M., 130 Jones, N. C., 365 Jones, T., 93 Jones, T. M., 211, 228 Jones, W. H., 224 Joo, H., 54 Jordan, P. J., 406 Joseph, D., 331 Joseph, D. L., 334 Joshi, A., 368, 408 Judd, C. M., 260 Judge, T. A., 111, 118, 119, 121, 122, 153, 275,
286, 296, 297, 300, 302–303, 322, 330, 333, 447, 465, 473–474, 475, 477
Jung, C. G., 279, 298 Jung, K. G., 122
K Kacmar, C. J., 422, 437 Kacmar, K. M., 437 Kafry, D., 155 Kahn, R. L., 136, 153, 155, 366, 473 Kahn, W. A., 188 Kahneman, D., 112, 122, 246, 248, 260–261,
262 Kaihla, P., 535 Kalanick, T., 425–426 Kamprad, L., 5 Kane, Y. I., 475, 505 Kanfer, R., 226 Kanter, R. M., 85 Kaplan, D. A., 539 Kaplan, M., 333 Kaplan, M. D. G., 54
Kaplan, S. A., 297 Kappas, A., 158 Kaptein, M., 228, 229 Katulak, N. A., 329 Katz, D., 366, 473 Katz, S., 414 Katzenberg, J., 97 Katz-Navon, T., 536 Kavanaugh, M. J., 262 Kazmi, S., 332 Kearney, E., 369, 370 Keaton, M., 216, 383 Keats, B., 505 Keeping, L. M., 57 Keiser, H. N., 329–330 Keller, R. T., 476 Kelley, H. H., 261 Kelley, T., 366, 380, 403 Kelloway, E. K., 227, 478 Kelman, H. C., 437 Kemmelmeier, M., 299 Kemmerer, B. E., 154 Kemp, N. J., 365 Kendall, L. M., 118 Kendell, J., 331 Kennedy, A. A., 534 Kennedy, J. C., 419 Kennedy, J. F., 390, 462 Kenny, D. A., 296 Kerby, S., 88 Kerlinger, F. N., 26 Kern, M. C., 356 Kerr, S., 465, 472, 477–478 Kesling, B., 535 Kessler, J., 496 Kessler, S., 539 Kiburz, K. M., 158 Kiger, P., 505 Kihn, J. A., 114, 122 Kiker, D. S., 56 Kiley, D., 26, 224, 506 Kim, E., 57, 369 Kim, H., 431, 436 Kim, S., 538 Kim, S. L., 418, 436 Kim, T., 538 King, L., 121 Kinicki, A. J., 122, 538, 539 Kirkman, B. L., 299, 300 Kirkpatrick, S. A., 476–477 Kisamore, J. L., 302 Kishan, S., 257 Kish-Gephart, J. J., 228, 259 Klawsky, J. D., 298 Klebe, L., 259 Klein, G., 260 Klein, H. J., 173, 190, 522, 538 Klein, K. J., 368, 371 Klimoski, R. J., 286, 408 Klotz, A. C., 405 Kluckhohn, C., 299
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575 Name Index
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Kluwer, E. S., 439 Knight, A. P., 368–369, 371 Kobasa, S., 156 Koehn, N. F., 475 Koenig, R., 366 Koh, W., 476 Kohlberg, L., 213, 228 Kohles, J. C., 476 Kohn, M. L., 329 Kolb, D. M., 439 Kolhatkar, S., 226 Kolodinsky, R. W., 422, 437, 438 Konopaske, R., 262, 364 Konstans, C., 322, 333 Koopman, J., 55, 57 Koopman, P. L., 471 Korbin, J. L., 332 Korman, A. K., 474 Korsgaard, M. A., 226 Koslowsky, M., 87 Kostopoulos, K., 407 Kowitt, B., 25, 414, 535 Kozlowski, S. W. J., 371, 403, 405 Kraatz, M. S., 89 Kraft, K. L., 211, 228 Kraimer, M. L., 431 Krantz, L., 126 Kranz, G., 478, 504, 539 Krause, S., 278 Krausz, M., 87 Kreitner, R., 259 Krell, E., 54 Krilowicz, T. J., 55 Kristoff Brown, A. L., 408, 529, 539 Kroc, R., 216 Kroeber, A. L., 299 Kroeck, K. G., 476 Krone, K. J., 406 Krueger, A. B., 112, 122 Kubota, Y., 506 Kukenberger, M. R., 407 Kuljanin, G., 403 Kulmann, T. M., 134 Kuman, K., 369 Kuncel, N. R., 329–330, 333 Kurek, K. E., 120 Kurtzerg, T. R., 225 Kvamme, N., 159 Kyounghee, H. K., 407
L La Magna, M., 51 Ladika, S., 85, 262 Lam, H., 55, 121 Lam, W., 54 Lambert, L., 538 Lambert, L. S., 227 Lamm, H., 402 Lanaj, K., 54, 55 Lance, C. E., 83 Landy, F. J., 189
Langan-Fox, J., 301, 406 Langton, L., 56 LaRocco, J. M., 156 Larsen, R. J., 107, 120 Larson, A., 474 Larson, E. W., 506 Lashinsky, A., 503, 507 Latack, J. C., 133, 155 Latane, B., 372, 402–403 Latham, G. P., 27, 171–173, 188, 190, 192, 259 Latham, S., 192 Lau, D., 370 Lau, I. Y. M., 299 Law, K. S., 317, 331, 476 Lawler, E. E., III, 118, 119, 168, 190, 192, 364,
372, 505 Lawler, E. J., 437 Lawrence, P. R., 119 Lawson, C., 259 Lawthom, R., 518 Layard, R., 113 Lazarus, R. S., 108, 120, 152, 155 Leach, D. J., 472 Leavitt, H. J., Jr., 407 Ledford, G. E., Jr., 364, 365 Lee, A., 471 Lee, C. A., 436 Lee, H. B., 26 Lee, H. U., 369 Lee, J. M., 536 Lee, K., 302 Lee, K. Y., 57 Lee, K-F., 419 Lee, L., 230 Lee, M., 434 Lee, N., 320 Lee, S., 418, 436 Lee, S. I., 299 Lee, S. M., 191 Lee, T., 126 Lee, T. H., 88 Lee, T. W., 68, 86, 88 Lehman, D. W., 471 Lehmann, A. C., 258 Lehmann-Willenbrock, N., 367 Leitner, K., 155 Lemmon, G., 154 Lencioni, P., 225 Lengel, R. H., 406 Lentz, E., 539 Leonard, D., 226 Leondis, A., 191 LePine, J. A., 38, 53–55, 111, 121, 141, 142,
153, 156, 188, 218, 253, 261, 298, 333, 367, 368, 382, 394, 403, 404–405
LePine, M. A, 141, 142, 152–153, 157, 477 Leroy, S., 154 Leslie, L. M., 158 Leung, K., 299 Leventhal, G. S., 204, 225
Levering, R., 25, 83, 86, 118 Levesque, M. J., 296 Levin, D., 26 Levin, S., 462, 475 Lev-Ram, M., 414, 436, 535, 537 Levy, P. E., 438 Levy, S., 419 Lewicki, R. J., 203, 224, 225, 438 Lewis, D., 262 Lewis, J. D., 225 Lewis, M., 21, 27 Lewis-Kulin, S., 14, 26 Li, L., 86 Li, N., 367, 419 Lian, H., 57 Liang, J., 54 Liang, L. H., 57 Liao, H., 56, 535 Liden, R. C., 405, 470, 471 Lieberman, J. D., 403–404 Lievens, F., 334 Ligdas, N., 262 Liker, J. K., 53, 364–365 Likert, R., 473 Lim, B. C., 371 Lim, V. K. G., 57, 87 Lima, L., 539 Lin, J., 178 Lin, L. F., 98, 119 Lincoln, A., 462 Lincoln, J., 369–370 Lind, E. A., 224, 226 Linoerfer, J., 408 Lirtzman, S. I., 153 Litterer, J. A., 438 Littman, J., 380, 403 Liu, H. L., 121 Liu, W., 54 Lobel, S., 369, 382 Locke, E. A., 27, 118, 171–173, 182, 190,
476–477 Locke, K., 27 Lockwood, N. R., 258 Lodi-Smith, J., 295 Loehlin, J. C., 295, 329 Loher, B. T., 104, 120 Lombardo, M. M., 154 Lorenzi, E., 259 Louis, M. R., 537–538 Loviscky, G., 213, 229 Lowe, K. B., 299, 476 Lowery, C. M., 55 Lubinski, D., 332 Lublin, J. S., 538 Lucas, G., 461 Lucas, R. E., 269 Lucas, S., 87–88 Luchman, J. N., 297 Luciano, J., 497 Ludwig, K., 316 Lueneburger, C., 471
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576 Name Index
coL27660_nidx_568-582.indd 576 11/03/17 01:16 PM
Luk, D. M., 134 Lundgren, T., 492 Luo, Y., 419 Luria, G., 536 Luscombe, B., 469 Luthans, F., 27, 182, 192, 259, 364 Lux, S., 437 Lynch, J. C., 216 Lynch, J. W., 86 Lynch, P., 229 Lyons, B. D., 333 Lyubomirsky, S., 121
M Maccoby, N., 473 MacDermid, S. M., 121 Mach, M., 407 MacKenzie, S. B., 55–56, 465, 476–478 MacMilan, D., 439 MacMillan, I., 259 MacMillan, P., 54 MacMillan, P. S., 349, 366 Macy, W. H., 188 Madden, J., 265 Mael, F. A., 260, 435 Magnus, K., 297 Maher, K., 537 Maier, N., 369 Maier, N. R. F., 188 Mainous, A. G., III, 86–87 Maitlis, S., 518 Major, D. A., 364, 402, 404 Malhotra, D., 439 Malkovich, J., 129 Malloy, T. E., 296 Manby, J., 195, 221–222 Mandel, M., 153 Mandeville, A., 158 Mangalindan, J. P., 536 Manian, V. G., 538 Manjoo, F., 436 Mann, O. K., 55 Manning, J., 27 Manning, P., 415 Mannix, E. A., 369, 382, 405 Mannor, M. J., 366 Mansfield, L. R., 122 Manson, T. M., 302 Manz, C. C., 364 Marcario, R., 516–517 Marcelo, S. L., 451, 513 March, J. G., 260 Marchionne, S., 447–448, 450, 494, 497 Marcic, D., 478 Marcus, B., 56, 302 Markham, S. E., 371 Marks, M. A., 405, 406, 409 Marks, M. L., 499, 507 Marquardt, M., 409 Marquez, J., 155, 225, 227 Marriott, J. W., Jr., 514
Marrone, J. A., 404 Marsh, H. W., 120 Marshall-Mies, J., 309, 319, 329 Martin, L. R., 296 Martin, R., 471 Martin, S., 535 Martinez Arias, R., 382 Martinko, M. J., 298 Martins, L. L., 370 Martocchio, J. J., 87 Martz, A., 407–408 Maruyama, G., 372 Maslach, C., 408 Maslow, A. H., 167, 189 Mason, B., 236, 258–259 Mathieu, J. E., 54, 85, 286, 300, 364, 366, 394,
404–405, 407 Matlack, C., 506 Matten, D., 214 Mattern, K. D., 334 Matteson, M., 262, 364 Matthews, G., 330 Matthews, R. A., 153 Matthisen, B., 57 Mattioli, D., 537, 538 Mausner, B., 27 Mawritz, M. B., 52 May, K. E., 370 Mayer, D. M., 515, 536 Mayer, J. D., 330–331 Mayer, M., 146, 158 Mayer, R. C., 198, 199, 203, 223, 229 Mayes, B. T., 156 Maynard, M. T., 365 McAdam, L., 240 McAdam, R., 236, 258–259 McAllister, D. J., 198, 224 McAuley, E., 168 McCall, M. W., 154 McCarthy, J. M., 475 McCarthy, T., 383 McCartney, K., 329 McCaulley, M. H., 298 McClelland, C. L., 120 McColl-Kennedy, J. R., 477 McCormick, B. W., 367 McCrae, R. R., 267, 295, 296, 299 McCrea, J., 434 McCrory, J., 236, 258–259 McDaniel, L. S., 88 McDaniel, M. A., 296, 438 McDonald, D., 216 McDonald, M., 216 McDonald-Mann, D., 478 McFarlin, D. B., 154 McGirt, E., 260 McGrath, J. E., 368 McGrath, M., 504 McGregor, J., 58, 192, 436, 536 McGuinness, P., 453 McIntyre, D. A., 26
McIntyre, M., 365 McKay, A., 245 McKean, K., 262 McKee-Ryan, F. M., 122 McKenna, J. F., 177, 191 McLean, L. D., 536–537 McLendon, C. L., 407 McLeod, P., 369, 382 McMillan, R., 507 McMurray, V. V., 435 McMurrian, R., 154 Medlock, K., 21 Medsker, G. J., 346, 358, 371 Mehl, M. R., 296 Mehng, S. A., 158 Meier, D. P., 53 Meier, K. J., 504 Meier, L. L., 154, 156 Meindl, J. R., 476 Melfi, T., 311 Mell, J. N., 408 Melner, S. B., 364 Mendenhall, M. E., 78, 134, 538–539 Menon, S., 153 Menon, T., 250 Mento, A. J., 182, 190 Merrill, D., 417 Mesmer-Magnus, J. R., 260, 405 Meyer, C. J., 371, 404 Meyer, J. P., 66, 85, 111, 122, 182, 253, 261,
465, 477 Meyers, D. G., 248 Miceli, M. P., 228 Michaels, D., 504 Michaels, L., 461 Michaelsen, I., 369 Michel, A., 154, 156 Michel, J. W., 333 Mickel, A. E., 189 Miles, R. E., 506 Milewski, G. B., 332 Milken, M., 461 Milkman, K. L., 157 Mill, J. S., 101 Miller, B., 21 Miller, B. K., 438 Miller, C., 168 Miller, C. C., 505 Miller, J., 152, 369–370 Miller, K. I., 472 Miller, L. K., 372 Miller, M., 152 Miller, M. L., 298 Miller, S., 157 Miller-Frost, S. L., 365 Milligan, S., 158, 261 Milliken, F. J., 370 Miner, A. G., 121, 227 Miner, J. B., 302 Miners, C. T. H., 331 Minette, K. A., 189
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577 Name Index
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Minkoff, H. B., 192 Minor, I., 437 Mintzberg, H., 437 Mio, J. S., 462, 475 Miron-Spektor, E., 403 Mischel, W., 301 Mishra, A., 499, 507 Mishra, K., 507 Mitchell, M. S., 227, 259 Mitchell, T. R., 68, 86, 88, 165, 188, 189 Mitra, A., 88 Moag, J. F., 204, 226 Mobley, W., 88 Moeller, N. L., 104, 120 Moffat, R. W., Jr., 496 Mohammed, S., 368, 370, 408 Mohrman, S. A., 364 Mol, S., 284 Molden, D. C., 261 Molso, M., 475 Monge, P. R., 407, 472 Moon, H., 261, 440 Moore, H., 331–332 Moorhead, G., 408 Moorman, R. H., 477 Morgeson, F. P., 119, 366, 471, 505, 536 Morris, J. R., 88 Morris, M. W., 250, 299 Morris, T., 506 Morris, W. N., 120 Morrison, A. M., 154 Morrison, D., 494 Morrison, E. W., 40, 54, 89, 407, 537 Morrison, R., 57 Morrison, T. G., 438 Morse, N., 473 Mosakowski, E., 308 Moskowitz, M., 83, 86, 118 Motowidlo, S. J., 53, 55, 56, 333 Mount, M. K., 286, 296–298, 300, 301, 333, 368 Mourier, P., 538 Mowday, R. T., 85, 188 Mowen, J. C., 536 Muchinsky, P. M., 87, 298–299 Mueller, W. S., 365 Mulcahy, A., 240, 259 Mullany, A., 472 Mullen, B., 403, 407, 409 Mullins, R., 408 Mulvey, P. W., 537 Munoz, O., 509, 533 Murnighan, J. K., 370 Muros, J. P., 477 Murphy, K. R., 58 Murphy, L., 152, 157 Murphy, L. R., 158 Murphy, R. M., 119 Murray, S. S., 157 Mutanen, P., 158 Myers, I. B., 298 Myers, L., 157
N Nadkarni, S., 368, 370 Nahrgang, J. D., 119, 405, 471 Nahum-Shani, I., 156 Naquin, C. E., 225 Narayanan, L., 153 Narvaez, D., 229 Nauta, A., 439 Naveh, E., 403, 536 Naylor, J. C., 189 Naylor, P., 57 Neale, M. A., 369, 382, 439 Near, J. P., 228 Neck, C., 408 Neihoff, B. P., 55 Neilson, G. L., 504 Neisser, U., 329 Nelson, D., 372 Nemeth, C. J., 369 Netemeyer, R. G., 154 Neubaum, D. O., 229 Neubert, M. J., 368 Neufeld, D. J., 476 Neufeld, S., 154 Neuman, G. A., 368 Newcomb, T. M., 473 Newman, D. A., 111, 122, 329, 331, 334 Newport, C., 163 Newton, D. W., 54 Newton, I., 511 Ng, K. Y., 182, 192, 226, 440 Ng, P. T., 262 Ng, T. W. H., 86, 154, 297 Nicholson, N., 87 Nicholson-Crotty, S., 486, 504 Nicolas, S., 534–535 Nida, S. A., 407 Niehoff, B. P., 478 Nifadkar, S. S., 299 Nightingale, F., 265 Nijstad, B. A., 121 Niles-Jolly, K., 515, 536 Nisbett, R. E., 248 Nisen, M., 51, 58 Noe, R. A., 104, 120, 253, 261, 262 Noel, J., 409 Noel, T. W., 229 Noer, D. M., 507 Nohe, C., 154, 156 Nonaka, I., 259 Nooyi, I., 414 Norman, W. T., 295 Norris, W. R., 474 Northcraft, G. B., 439 Novak, M., 470 Novakovic, P., 414 Novicevik, M. M., 437 Noyce, J., 157 Nugent, P. S., 440 Nuttal, C., 504 Nyberg, A. J., 54
O Obama, B., 415, 460–461 O’Boyle, E. H., 331, 438 O’Boyle, E., Jr., 54, 187, 188 O’Brien, J., 505 O’Connor, A., 153 O’Connor, W. E., 438 Odbert, H. S., 295 Oddou, G., 78, 134 O’Dell, C., 372 O’Driscoll, M. P., 156 Offerman, N., 216+ Oh, I. S., 333 Oh, O., 407 Oke, A., 535 Oldham, G. R., 105, 119, 191, 298, 403, 504 O’Leary-Kelly, A. M., 522, 538 Oliver, R. L., 440 Olsen, R. N., 192 Olson-Buchanan, J. B., 157 O’Neill, H., 505 Ones, D. S., 286, 289, 297, 302–303 Ordòñez, L., 229 O’Reilly, C., 368 O’Reilly, C. A., III, 53–54, 528, 534, 537 O’Reilly, J., 406 Orey, M., 227 Organ, D. W., 54 Osborn, A. F., 403 Osland, J. S., 134 Ostrof, C., 534 Ostrower, J., 533 O’Sullivan, S. L., 406 Oswald, F. L., 269 Otterbourg, K., 504 Ou, A. Y., 299, 539 Outerbridge, A. N., 333 Overholt, A., 301 Overton, L., 262 Oyserman, D., 299
P Pacelle, W., 221 Padgett, M. Y., 122 Paetzold, R. L., 191 Page, G., 487 Page, L., 310, 417, 418 Page, S. E., 369 Paine, J. B., 55, 56, 465, 476 Papper, E. M., 346, 358, 371 Park, B., 260 Park, D., 250 Park, J. H., 369 Park, O. S., 56 Park, T. Y., 158 Parke, M. R., 331 Parker, B. W., 438 Parra, L. F., 114, 122 Patterson, B. F., 334 Patterson, M. G., 518
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578 Name Index
coL27660_nidx_568-582.indd 578 11/03/17 01:16 PM
Patton, G. K., 111, 121, 301 Paul, K. B., 98, 119 Paumgarten, N., 473, 536 Paunonen, S. V., 297 Pavlo, W., Jr., 212 Pavot, W., 297 Payne, S. C., 259–260, 303, 536 Paynton, C. F., 436 Pearce, J., 153 Pearsall, M. J., 366 Pearson, C. M., 56 Peeters, M. A. G., 367 Peeters, M. C. W., 158 Penenberg, A. L., 225 Peng, T. K., 419 Pennebaker, J. W., 296 Pennings, J. M., 436 Pepper, L., 499, 507 Pereira, B., 57 Perhoniemi, R., 158 Perkins, A., 157 Perloff, R., 329 Perrewé, P. L., 437, 438 Pescuric, A., 259 Peters, D. R., 473 Peterson, R. S., 405 Peterson, S. J., 27 Petersson, L., 5 Petkova, A. P., 223 Petrie, N., 148 Pfeffer, J., 26, 53–54, 435, 436 Philip, S., 168 Philips, J. L., 364, 367 Phillips, J., 404 Piccolo, R. F., 54, 119, 394, 404–405, 465,
473–476 Pierotti, A. J., 358, 366 Pieterse, A. N., 371 Pinder, C. C., 188, 259 Pine, C., 178 Pines, A., 155 Pinkley, R. L., 439 Piotrowski, C., 301 Piotrowski, M., 296 Pitt, B., 21 Plamondon, K. E., 33, 53 Platt, O., 71 Plouffe, D., 425–426 Ployhart, R. E., 334, 409 Podsakoff, N. P., 55, 119, 141, 142, 153 Podsakoff, P. M., 55–56, 465, 476–478 Polman, E., 408 Ponsoldt, J., 521 Pool, R., 235 Poon, J. M. L., 438 Popper, M., 477 Porat, R., 414 Porath, C., 43 Porras, J. I., 507 Porter, C., 506
Porter, C. O. L. H., 182, 192, 226 Porter, J., 228 Porter, L. W., 85, 88 Porter, M., 505 Posthuma, R., 507 Postlethwaite, B. E., 405 Postman, L., 188 Poteet, M. L., 539 Potheni, L., 364 Potter, J., 295 Potts, C., 538 Poundstone, W., 333 Powers, F. G., 427 Pratt, M. G., 260 Price, K. H., 370 Prieto Zamora, J. M., 382 Pritchard, D. R., 189 Probst, T. M., 507 Pruitt, D. G., 439 Pryor, F., 427 Pulakos, E. D., 33, 53, 58 Puranam, P., 476 Putka, D. J., 299 Putman, L. L., 406 Pyrillis, R., 193 Pyrko, I., 262
Q Quinn, R., 153 Quinn, R. W., 120
R Radosevich, D. J., 190 Rafaeli, A., 121, 406 Rafter, M. V., 86, 157 Ragins, B. R., 368 Rahe, R. H., 132, 154 Ramesh, A., 86 Ramirez, G. G., 476 Randall, M. L., 438 Randazzo, R., 151 Rao, H. R., 407 Rao, L., 414, 436 Rapp, A. A., 408 Rapp, T. L., 366, 408 Rapson, R. L., 121 Rasinski, K. A., 226 Rasor, M., 409 Raven, B., 435 Rayman, J., 299 Raymond, R., 73–74 Reade, C., 78 Reagan, R., 462 Reard, L., 32 Reardon, N., 478 Reay, T., 88 Rechnitzer, P. A., 156 Reed, A., II, 229 Reed, S., 382 Rees, D. W., 506 Reese, R., 462, 475
Regan, M. P., 409 Rehg, M. T., 228 Reilly, G., 407 Reilly, J., 221–222 Reilly, M. E., 332 Reingold, J., 414, 434, 436 Renard, M. K., 187 Resch, M. G., 155 Rest, J. R., 210, 228, 229 Retna, K. S., 262 Reuss, M., 469 Revis, J., 530 Reymen, I. M. M. J., 367 Reynolds, S. J., 224, 228, 229 Rezendes, M., 383 Rhoades, L., 89 Rhodan, M., 25 Rhodenizer, L., 260 Rice, R. W., 154 Rich, B. L., 119, 152–153, 156, 188, 476, 477 Richards, H., 365 Richey, B. E., 440 Ricketts, T., 265 Riediger, M., 302 Riggio, R. E., 458, 462, 474, 475 Riketta, M., 121 Rindermann, H., 330 Rindova, V. P., 223 Ritter, K. J., 153 Rivers, I., 57 Rivlin, G., 535 Rizzo, J. R., 153 Robb, W., 511 Robbie, M., 245 Roberson, L., 226 Roberson, O., 368 Roberts, B., 407 Roberts, B. W., 270, 295, 296 Roberts, J., 533 Roberts, R. D., 330, 331 Robertson, D. C., 209 Robertson, P. J., 507 Robie, C., 114, 122 Robin, J., 119 Robinson, D. L., 518 Robinson, S. L., 41, 56, 89 Robinson, W., 383 Roche, W. K., 440 Rockmann, K. W., 260 Rockstuhl, T., 471 Rodell, J. B., 86, 153 Roehling, M. V., 153, 157 Rogelberg, S. G., 472 Roger, D., 148 Rogers, C., 86–87 Rogers, W., 427 Roh, H., 368 Roisman, G. A., 329 Rokeach, M., 118, 294 Rometty, G., 414, 418 Roosevelt, F. D., 462
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579 Name Index
coL27660_nidx_568-582.indd 579 11/03/17 01:16 PM
Roseman, R. H., 297 Rosen, C. C., 57, 438 Rosenbaum, M. E., 372 Rosenbaum, W. B., 190 Rosenberg, M., 224 Rosenfeld, I., 414, 420 Rosenman, R. H., 138, 155–156 Rosenthal, R. A., 153 Ross, J., 261 Ross, L., 248, 261 Rosse, J. G., 88 Roth, P. L., 111, 122 Rothbard, N. P., 188 Rotter, J. B., 224, 276, 297 Rotundo, M., 40, 56 Rounds, J., 298 Rousseau, D. M., 27, 89, 223 Rowe, C. W., 431 Rowley, I., 534 Roznowski, M., 87, 322, 333 Ruffalo, M., 383 Ruffolo, R., 172 Rupp, D. E., 487 Rupp, D. R., 167, 189 Rusbult, C. E., 85, 86–87 Rush, M. C., 55 Rusli, E. M., 436 Russell, H. M., 407 Russell, J. A., 107, 120 Russell, K., 129 Russell, S. S., 98, 119 Rutherford, M. A., 438 Ryan, A. M., 368 Ryan, K., 402 Ryan, R. M., 167, 189, 191 Rylance, M., 427 Rynes, S. L., 189, 192
S Saari, L. M., 122, 190 Saavedra, R., 366 Sabella, M. J., 409 Sablynski, C. J., 68, 86 Sackett, P. R., 56, 57, 286, 289, 300, 301–302,
329–330, 334 Sacks, D., 536 Safer, W., 332 Safian, R., 539 Sager, J. K., 72, 87 Sagie, A., 87 Sahadi, J., 157 Sakai, R., 494 Salaman, G., 536 Salancik, G. R., 436 Salanova, M., 188 Salas, E., 260, 403, 408, 409 Salerno, J., 403 Salgado, J. F., 286, 300 Salovey, P., 330–331 Saltz, J. L., 515, 536 Salz, J. L., 371
Sanchez-Runde, C. J., 294–295 Sandberg, S., 414 Saucier, G., 267, 295 Saul, J. R., 54, 153, 394, 404–405 Sauter, S., 152, 157 Sauve, E., 262 Scandura, T., 471 Scharf, F., Jr., 152, 157 Schat, A. C. H., 227 Schaubroeck, J., 154, 157 Schaude, G. R., 403 Schaufeli, W. B., 188 Scheibe, S., 158 Scheier, M. F., 22 Schein, E. H., 514, 530, 535, 537, 538 Schepers, D. H., 227 Schiff, D., 365 Schiller, S., 382 Schkade, D. A., 112, 122 Schlareth, A., 439 Schlender, B., 365 Schlicksupp, H., 403 Schmidt, F. L., 188, 302, 303, 322, 332, 333 Schmidt, J., 297 Schmidt, M. S., 328 Schminke, M., 229, 487 Schmit, M. J., 53, 333 Schnatterly, J., 370 Schneck, R. E., 436 Schneider, A., 403 Schneider, B., 188, 515, 534, 535, 536, 537 Schneider, P., 449 Schneier, C. E., 47, 58 Schoeff, M., Jr., 227, 230 Scholl, R. W., 177, 191 Schooler, C., 329 Schoorman, F. D., 198, 203, 223, 471 Schouten, M. E., 365 Schreiber, L., 383 Schriesheim, C. A., 122 Schuker, L. A., 472 Schultz, H., 512 Schwarber, K., 293 Schwartz, J., 27 Schwartz, J. E., 296 Schwartz, S. H., 118, 299 Schwartz, S. J., 168 Schwartz, T., 331 Schwarz, N., 112, 122 Schweitzer, M. E., 229 Schwind, K. M., 405 Scott, B. A., 55, 218 Scott, K., 202 Scott, K. L., 52 Scott, K. S., 26 Scott, R., 451 Scott, S., 224 Scott, W. R., 505 Scullen, S. E., 193 Scullen, S. M., 298 Sedlacek, W. E., 191
Seeger, M. W., 260 Segal, N. L., 297 Segarra-Ciprés, M., 259 Sego, D. J., 364, 402, 404 Seifert, C. F., 436 Seijts, G. H., 408 Selander, R. W., 448 Seldman, M., 437 Seligman, D., 332 Sellaro, C. L., 88 Sellnow, T. L., 260 Seltzer, J., 478 Selye, H., 155 Seo, M. G., 331 Seong, J. Y., 367 Sever, J. M., 223 Severance, L., 440 Shackleton, V. J., 518 Shadish, W. R., 27 Shaffer, J. A., 301 Shaffer, M. A., 78, 134, 332 Shalley, C. E., 298, 403 Shamir, B., 477, 478 Shapiro, D., 188 Shaw, D. G., 47, 58 Shaw, J. C., 119, 227 Shaw, J. D., 52, 89 Shaw, K., 364 Shaw, K. N., 190 Shawel, T., 53 Shea, G. P., 366, 408 Sheats, P., 352, 367 Sheetz, J., 487 Shell, R., 439 Shepherd, L., 85, 193 Sheppard, A., 403 Sherf, E. N., 331 Shi, J., 56 Shin, S. J., 477 Shirouzu, N., 525 Shockley, K. M., 154, 158 Shore, L. M., 89, 229, 471 Shotland, A., 253, 261 Shufu, L., 525 Shuit, D. P., 535 Shultz, J., 297 Sias, P. M., 406 Silver-Greenberg, J., 191 Silverman, R., 51 Silverman, R. E., 504, 505–506 Silverthorne, M., 26 Simmons, J. K., 272 Simon, B., 466 Simon, H., 504 Simon, H. A., 246, 260 Simon, W. L., 475 Simons, T., 225 Sims, H. P., Jr., 56, 364 Sims, R. R., 259 Sinar, E. F., 114, 122 Sinclair, R., 152, 157
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580 Name Index
coL27660_nidx_568-582.indd 580 11/03/17 01:16 PM
Singer, A. D., 87 Singer, J., 437 Singer, M., 505 Singh, K., 334 Singhapakdi, A., 211, 228 Sinha, R., 405–406 Sitkin, S. B., 223 Sivasubramaniam, N., 476 Skarlicki, D. P., 227 Skiles, J., 36 Skinner, B. F., 236 Skon, L., 372 Slater, D., 504 Sloan, T., 519 Slocum, J., 537 Slovic, P., 248, 260–261 Smerd, J., 261 Smith, A. P., 154 Smith, D. B., 537 Smith, E. E., 101 Smith, G., 539 Smith, L. M., 365 Smith, M., 538 Smith, M. A., 302 Smith, P. C., 98, 114, 118, 119, 122 Smith, P. K., 57 Smith-Crowe, K., 227 Snoek, J., 153 Snow, C. C., 506 Snyder, D., 313 Snyder, L., 189 Snyderman, B. B., 27 Soetjipto, B. W., 431 Sohre, K., 159 Somech, A., 436 Sommerkamp, P., 470 Song, L. J., 317, 331 Sonnentag, S., 152, 158 Sonntag, K., 154, 156 Sorensen, K. L., 297 Sorenstam, A., 306 Soto, C. J., 295 Sowa, D., 89 Sparrowe, R. T., 431, 470 Spearman, C., 330 Spector, P. E., 153, 156, 182, 192, 226, 409 Speizer, I., 189 Spencer, L., 367 Spielberg, S., 427 Spieler, I., 158 Spitzmuller, C., 98, 119 Spitzmuller, M., 300 Spitznagel, E., 87 Spodick, N., 226 Spreitzer, G. M., 191, 499, 507 Srivastava, S., 538 Staats, B. R., 157 Stack, L. C., 224 Stahelski, A. J., 436 Stahl, G. K., 134, 538–539 Stainton, L., 88
Stajkovic, A. D., 27, 182, 192 Stalker, G. M., 489 Stamov-Roßnagel, C., 158 Stankov, L., 331 Stanley, D. J., 55, 111, 122, 182, 253, 261,
465, 477 Stanton, J. M., 98, 114, 119 Stark, S., 296 Stasster, G., 369 Staw, B. M., 261 Stead, D., 225, 298 Stebbins, R. A., 85 Steel, P., 297, 300 Steers, R. M., 85, 88, 188, 294–295 Steffy, L., 537 Stein, J., 440 Steiner, I. D., 367, 402 Stephens, J., 408 Stern, Z., 536 Sternberg, R. J., 258, 329 Stevens, C., 468 Stevens, M. J., 395, 409 Stevenson, A., 257 Steward, D., 369 Stewart, G. L., 296, 358, 364, 366, 367, 368 Stewart, J., 461 Stibbe, M., 535 Stillings, J., 189 Stillwell, D., 471 Stogdill, R. M., 452, 454, 471 Stone, A. A., 112, 122 Stone, E., 272 Stöppler, M. C., 155 Stout, R. J., 409 Stowell, A., 427 Strauss, J. P., 296 Stroebe, W., 403 Strong, E. K., 298 Strum, A., 56 Suh, E., 113 Sulkowicz, K., 191, 192 Sullenberger, C., 36 Sundstrom, E., 340, 365, 371–372 Sutcliffe, K. M., 260 Suttle, J. L., 168, 190 Sutton, R. I., 121, 403, 406 Swanson, C., 466 Swanson, N., 152, 157 Swider, B., 537 Swisher, K., 439
T Taggar, S., 408 Tai, B., 258 Tait, M., 122 Takemoto-Chock, N. K., 295 Takeuchi, R., 308 Tam, K. P., 299 Tams, S., 174 Tang, T. L., 169, 189 Tangirala, S., 54
Tannenbaum, S. I., 253, 261, 262, 405 Taras, V., 300 Tasa, K., 408 Taylor, A., III, 26, 226, 471–472, 506 Taylor, F. W., 27, 119 Taylor, O. A., 56 Tchaikovsky, P. I., 320 Teague, P., 440 Tedlow, R. S., 436 Tellegen, A., 107, 120 Tenbrunsel, A. E., 227 Tepper, B. J., 52, 226, 227 Terlep, S., 439, 472 Terry, D. J., 260 Tesluk, P. E., 331, 404 Tetrick, L. E., 229 Tett, G., 495, 506 Tett, R. P., 301, 303 Tetzeli, R., 469, 503 Thaler, R., 245 Thallner, P., 83 Thatcher, J. B., 437 Thatcher, S. M. B., 54 Theobald, N. A., 486, 504 Theresa, Mother, 456 Thibaut, J., 204, 225 Thierry, H., 182, 192 Thiry, K., 513 Thoma, S. J., 229 Thomas, G., 471 Thomas, K. W., 189, 191, 425, 438, 439 Thomas, L. L., 332, 333 Thompson, B., 503 Thompson, J., 330 Thompson, J. A., 191 Thompson, J. D., 366 Thompson, L. L., 406 Thoreson, C. J., 111, 121, 296–298 Thoreson, J. D., 298 Thorndike, E. L., 188 Thorndike, R. K., 330 Thurgood, G. R., 358, 366 Thurstone, L. L., 330 Tims, M., 120 Tisdale, J., 152, 157 Tjosvold, D., 366 Tkaczyk, C., 117, 118–119, 196, 537 Todd, P. M., 248 Todorova, G., 406 Toh, S. M., 505 Toker, S., 159 Tomlinson, E. C., 223, 225, 228 Tomlinson-Keasey, C., 296 Topolnytsky, L., 85, 111, 122, 182, 253, 261,
465, 477 Toppinen-Tanner, S., 158 Tracey, J. B., 262 Traver, H., 253, 261 Treadway, D. C., 422, 437 Trees, L., 259, 262 Treinen, J. J., 365
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581 Name Index
coL27660_nidx_568-582.indd 581 11/03/17 01:16 PM
Treviño, L. K., 224, 228, 229, 259 Trevor, C. O., 88 Triandis, H. C., 356, 369, 370 Trice, H. M., 534 Tripodi, T., 156 Trochim, W. M. K., 405 Trommsdorff, G., 402 Troth, A. C., 406 Truman, H. S, 457, 474 Trump, D., 461 Truxillo, D. M., 122 Tsai, W. C., 121 Tsui, A. S., 86, 299, 534 Tucci, S., 383 Tucker, J. S., 296 Tuckman, B. W., 365 Tuggle, C. S., 370 Tuijl, H. F. J. M., 367 Tuna, C., 507 Tupes, E. C., 295 Turing, A., 485 Turner, A. N., 119 Tversky, A., 248, 260–261, 262 Twain, M., 265 Twenge, J. M., 83 Tyldum, M., 485 Tyler, T. R., 226 Tyrrell, D. A., 154 Tzafrir, S., 407
U Ubell, R., 365 Uhl-Bien, M., 445, 470 Ulmer, R. R., 260 Ulukaya, H., 453 Urban, K., 178 Urbina, S., 329 Ury, W., 428, 439–440
V Vail, P., 478 Valle, M., 438 Van de Ven, A. H., 366, 403 Van de Vliert, E., 406 Van den Bos, K., 224 Van Der Vegt, G. S., 404 Van der Velde, M. E. G., 89 Van der Zee, K. I., 284 Van Direrndonck, D., 499 Van Dyne, L. V., 38, 54, 55, 366, 368 Van Eerde, W., 182, 192 Van Fleet, D. D., 474 Van Ginkel, W. P., 371, 408 Van Iddekinge, C. H., 299 Van Kleef, G. A., 370 Van Knippenberg, D., 364, 369–371, 403, 408 Van Lange, P. A. M., 439 Van Maanen, J., 530, 538 Van Oudenhoven, J. P., 284 Van Rutte, C. G., 367 Van Scotter, J. R., 56, 228
Vance, A., 535 Vandermey, A., 414 VandeWalle, D., 242, 259 Vanian, J., 507 Vardaman, J. M., 85 Vartiainen, M., 365 Vashidi, D. R., 408 Vecchio, R. P., 474 Veiga, J. F., 26 Velthouse, B. A., 189, 191 Venkataramani, V., 366 Verbeke, W., 534 Verducci, T., 293 Vernon, P. A., 475 Vernon, P. E., 330 Vidmar, N. J., 371 Vidrine, D., 129 Viechtbauer, W., 270, 295 Villado, A. J., 405, 529, 539 Villeneuve, D., 350 Vinson, G., 477 Viswesvaran, C., 111, 122, 260, 286, 300,
302–303 Vitell, S. J., 211, 228 Voelpel, S. C., 369 Vogelstein, F., 330 Volgering, M., 534 Volpe, C. E., 409 Von Krogh, G., 403 Vroom, V. H., 188, 450, 471, 472 Vuori, J., 158
W Wageman, R., 372 Wagner, D. T., 405 Wagner, J. A., III, 368, 371, 472, 505 Wagner, R., 80 Wagner, R. K., 258 Wah, L., 258 Wahba, P., 414 Waldman, D. A., 476 Walker, L., 204, 225 Wall, T. D., 365 Wallace, A. M., 518 Wallace, J. C., 536 Walsh, B., 461 Walster, W., 225 Walter, F., 331, 367, 404, 505 Walter, S. L., 367 Walton, K. E., 270, 295 Walton, T., 539 Walumbwa, F. O., 477, 535 Walz, S. M., 55 Wanberg, C. R., 539 Wanek, J. E., 289, 302 Wang, C., 503 Wang, D., 476 Wang, H., 476 Wang, M., 54, 56 Wang, S. L., 419 Wang, Y., 505
Wanous, J. P., 539 Warkentin, M., 406 Warnick, J., 400 Warr, P. B., 472 Warren, B., 504 Warren, C. R., 297 Wasti, S. A., 300 Watanabe, S., 122 Waterman, A. S., 168 Watson, D., 107, 120 Watson, E., 521 Watson, W., 369 Wayland, M., 506 Wayne, J. H., 154 Wayne, S. J., 89, 154, 436–437, 470, 471 Weaver, G. R., 224, 228 Weaver, N., 538 Webb, C., 15 Webb, J., 512 Webb, W. M., 224 Weber, J., 230 Weber, T., 478 Weber, Y., 538 Wee, S., 334 Wegner, D. M., 408 Wehrum, K., 535 Wei, F., 156 Weick, K. E., 244, 260 Weigelt, O., 56 Weigert, A., 225 Weinberg, J., 499, 507 Weingart, J. R., 406 Weingart, L. R., 405, 406, 439 Weinstein, M., 478 Weiss, A., 330 Weiss, H. M., 53, 55, 120, 121, 240, 258, 301 Weitz, J., 275 Weitzel, J. R., 474 Welbourne, T. M., 26 Welch, D., 506 Welch, E. R., 55, 121 Welch, J. F., Jr., 48–49, 51, 58 Weller, I., 88 Wellman, N., 471 Welsh, E. T., 539 Wendorf, C. A., 229 Wesson, M. J., 173, 182, 190–192, 226, 300, 538 West, M. A., 518, 534 West, S. G., 27 Wheeler-Smith, S. L., 407 Whetten, D. A., 26, 440 Whitaker, F., 350 Whiting, S. W., 55 Whitman, M., 158, 414, 500 Whitney, K., 370 Wholey, D. R., 506 Widen, R., 409 Wieczner, J., 414 Wiemann, S., 302 Wiener, Y., 86 Wiesenfeld, B. M., 206, 226
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582 Name Index
coL27660_nidx_568-582.indd 582 11/03/17 01:16 PM
Wigdor, A. K., 334 Wild, R. E., 227 Wiles, P., 512 Wilke, H. A. M., 224 Williams, J., 439 Williams, K., 368, 372, 402–403 Williams, K. D., 189, 407 Williams, K. Y., 369 Williams, M. L., 478 Williams, S. W., 246 Williamson, I. O., 223 Wilpers, S., 297 Winer, B. J., 473 Winerman, L., 329 Wingard, D. L., 296 Winkel, D. E., 332 Withey, M. J., 87 Witt, L. A., 438 Wittenbaum, G., 369 Wolf, S., 522, 538 Wolfe, D., 153 Wong, A., 366 Wong, C. S., 317, 331 Wong, D. T., 302 Wong, M., 419 Wood, D., 295 Wood, R. E., 182, 190 Woodman, N., 455–456 Woodward, J., 505 Woolley, S., 188 Woolman, C. E., 509 Woolum, A., 57 Worchel, P., 224, 369 Worthen, B., 507 Wraith, S., 168
Wright, J., 368 Wright, T. A., 225 Wrightsman, L. S., Jr., 224 Wrzesniewski, A., 120 Wu, C., 158 Wu, J. B., 86, 534 Wulf, J., 504 Wyden, R., 397 Wyland, R. L., 332
X Xanthopoulou, D., 188 Xie, J. L., 40 Xin, K., 419 Xin, K. R., 534
Y Yagan, S., 482 Yan, M., 57 Yang, J., 121 Yang, J. L., 472 Yang, M. M., 419 Yang, T. S., 158 Yank, J. L., 371 Yarnold, P. R., 156 Yarow, J., 157 Yetton, P. W., 472 Yglesias, M., 503 Young, C. E., 88 Young, J. S., 475 Young, M., 365 Young, M. I., 250 Youngcourt, S., 259–260 Yu, J., 367
Yukl, G. A., 415, 419, 431, 435–436, 437, 447, 470, 474
Yun, S., 418, 436
Z Zablah, A. R., 536 Zaccaro, S. J., 405, 409, 471 Zajac, D. M., 85, 286, 300 Zakay, E., 477 Zapata-Phelan, C. P., 300 Zardkoohi, A., 191 Zarya, V., 414 Zedeck, S., 300 Zeidner, M., 330 Zemba, Y., 250 Zhan, Y., 56 Zhang, A. Y., 86 Zhang, X., 419 Zhang, X. A., 367 Zhang, Y., 152–153, 156, 477 Zhang, Z., 505, 534 Zhao, H., 89 Zhao, H. H., 367 Zhao, P., 334 Zhou, J., 298, 403, 437–438, 477 Zhu, W., 476, 477 Ziegert, J. C, 371 Zielinski, S., 293 Zika, S., 153 Zillman, C., 83 Zimmerman, R. D., 301, 529, 537, 539 Ziyou, Y., 366 Zohar, D., 536 Zou, X., 299 Zuckerman, A., 297
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583
coL27660_cidx_583-586.indd 583 11/01/17 07:52 AM
Company Index
3M, 166, 196, 517 20th Century Fox, 451
A Accenture, 14, 49 AC/DC, 342 Aerosmith, 342 Aetna, 484 Aflac, 14, 449 A.G. Edwards, 80 Air France, 32 Airbnb, 528, 530 Airbus, 487 Albertsons, 288 Alcoa, 487 Alcon Labs, 68 Aldamisa Entertainment, 71 Alphabet, 414, 418 Amazon Studios, 99 Amazon.com, 46, 196, 411, 412 American Apparel, 449 American Express, 14, 144, 196 Anheuser-Busch, 526, 528 Anna Sui, 211 Anthropologie, 211 AOL/Time Warner, 525 Apple Computer, 12, 24, 196, 375, 414–415,
418, 457–458, 460, 481, 482, 489, 490, 502–503, 511, 521, 523–524
AT&T, 14, 389, 500
B Babbo (New York City), 234 Baird, 14 Bank of America, 144 Bank of England, 495 Bayer, 32 Becton, Dickinson, and Company, 421 Ben & Jerry’s, 79, 81 Berkshire Hathaway, 196, 246 Best Buy, 288 Bloomberg Businessweek, 500 BlueCross BlueShield of Tennessee, 146 BMW, 10, 196, 278, 525 Boeing, 78, 254, 493, 500 Booz Allen Hamilton, 107 Boston Consulting, 14 Boston Globe, 383 Boston Red Sox, 265 BP, 129, 516 Bridgewater Associates, LP, 233, 234, 256–257 Bristol-Myers Squibb, 497 British Airways, 520 British Petroleum (BP), 129, 516 Burger King, 18–19 Burt’s Bees, 526
C Campbell Soup Company, 466, 494 Capital One, 14 Care.com, 451, 513 CareerBuilder.com, 201 Cargill, 487 Cases
Apple Computer, 481, 502–503 Bridgewater Associates, LP, 233, 256–257 Chicago Cubs, 265, 293 Delta/United, 509, 532–533 Federal Bureau of Investigation (FBI), 305,
327–328 General Electric (GE), 29, 51 General Motors (GM), 443, 468–469 Google, 161, 186–187 Honeywell, 125, 150–151 IKEA, 5, 24–25 Microsoft, 375, 399–400 Publix, 93, 117 PwC, 61, 83 SeaWorld, 195, 221–222 Whole Foods Market, 337, 361–362 Zappos, 411, 434
Central Intelligence Agency (CIA), 311, 427 Cheesecake Factory, 14 Chemical Bank, 314 Chevron, 516 Chicago Cubs, 265, 293 Chicago Police Department, 495 Chipotle, 484 Chobani, 453 Cirque du Soleil, 517 Cisco Systems, 516, 523, 530 Cleveland Clinic, 495 Clif Bar & Company, 517 Clorox, 526 CNN, 195 Coca-Cola Company, 196, 209, 389, 486 Columbia Pictures, 21 Comcast, 69 Computer Associates International, 219 Con Edison, 343 Consumer Reports, 205 Container Store, 14 Continental Airlines, 509 Corning, 146 Costco, 24, 196 Cruise Automation, 468 CVS Pharmacy, 288, 414
D DaimlerChrysler, 525 Dartmouth University, 461 Davita, 513 Dell, 487
Deloitte LLP, 14, 414 Delta, 14, 509, 526, 532–533 Denver International Airport, 250–251 Diane von Furstenberg, 211 DiscoVision, 39–40 Dish Network, 428 Domino’s Pizza, 201 Dow Corning, 495 Dragonfly, 278 DreamWorks Animation, 97, 100 Duke Energy, 414
E Edward Jones, 14 Enron, 390 Ernst & Young (EY), 14, 254 EuropaCorp., 521 Everett Clinic, 184 Exxon, 250 Exxon/Mobil, 516, 525
F Facebook, 49, 66, 72, 173, 196, 239, 247, 375,
389, 414, 491, 494, 495, 528 Farmer’s Insurance, 466 Federal Bureau of Investigation (FBI), 305,
327–328 FedEx, 14, 196, 389, 520, 526 Fiat-Chrysler, 447–448, 494, 497 Fidelity Investments, 414 Filmnation, 216 Financial Times, 495 Flashlight Films, 36 Fleet Bank, 144 Forbes, 337 Ford Motor Company, 497, 525 Forever 21, 211–212, 214–215 Forte Hotels, 314 Fortune, 5, 12, 14, 48, 61, 93, 117, 147, 196,
337, 411, 413, 443, 456, 458, 500, 515, 517
Four Seasons, 14 Freescale Semiconductor Inc., 147 Fresh Market, 288
G Gallup, 163 Geely Holding Group, 525 Genentech, 14 General Dynamics, 414 General Electric (GE), 29, 48–49, 51, 196,
219, 247, 389, 396, 453, 455, 495 General Mills, 97, 520 General Mills Institute, 97 General Motors (GM), 414, 443, 444, 447,
449, 456, 468–469, 497, 500, 523
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584 Company Index
coL27660_cidx_583-586.indd 584 11/01/17 07:52 AM
Girl Scouts, 353 Goldman Sachs, 14, 247, 494, 524 Google, 14, 45, 97, 143, 161, 186–187, 196, 247,
310, 323, 375, 414, 416, 417, 418, 419, 453, 468, 521
Google Hangouts, 389 GoPro, 455–456 Grant Thornton, 147–148 Green Bay Packers, 137
H Halliburton, 247 Harrah’s, 528 Herman Miller, 254 Hewlett-Packard (HP), 414, 493, 500, 526 Hilton, 14 Hogan Assessment Systems, 289 Home Depot, 219, 512 Honda Motor, 511 Honeywell, 125, 127, 150–151 HP/Compaq, 525 HQ Global Workplaces, 494 Humana, 147 Humane Society, 221 Hyatt, 14 Hyundai, 10
I IBM, 40, 80–81, 196, 281–283, 311, 343, 414,
418, 494, 496, 511 IDEO, 346–347, 378–380, 512 IKEA, 5, 14, 24–25, 73 InBev, 526 Infosys, 180 Intel, 97, 415, 449, 486 International Harvester Company, 452 Interpublic Group, 516 Intuit, 14 Iron Mountain, 448
J J. Crew, 452 Japan Airlines, 250 JCPenney, 492, 523–524 J.D. Power and Associates, 10 Jet Blue, 530 Jive, 389 J.M. Smuckers, 219 John Deere, 254 Johnson & Johnson, 196 Johnsonville Sausage, 32 JPMorgan Chase, 196, 531
K Kaiser Permanente, 247 KFC, 512 KI, 512 Kiss, 342 Kohl’s, 24, 492 KPMG, 14
Kraft Foods, 420 Kronos, 288
L Laps Entertainment, 350 LEGO, 170 Levantine Films, 311 Lexus, 46 LinkedIn, 389 L.L. Bean, 148 Lockheed Martin, 414 Logitech, 343 L’Oréal, 315 Lowe’s, 249
M M5, 513 Macy’s, 492 Mail Boxes Etc., 526 Manheim Auctions, Inc., 389 Marriott International, 14, 196, 288, 514 Mars, Inc., 14, 531 MasterCard, 448 Match.com, 482 Mayo Clinic, 14, 125 MCA, 39–40 McDonald’s, 216, 486, 487 McGraw-Hill Education, 531 MCI, 212 McKinsey, 163 Meijer, 201 Men’s Wearhouse, 34, 513 Mensa, 201 Mercedes-Benz, 525 Microsoft, 12, 97, 173, 196, 247, 323, 375,
399–400, 416, 419, 489, 494, 500, 502, 512, 522
Microsoft Sharepoint, 389 Mind/Body Medical Institute, 146 MindTree, 179, 180 Minnesota Vikings, 137 Missionaries of Charity, 456 Mitsubishi Motor Manufacturing of America,
42 Mitsubishi Motors, 525 Mondelez International, 414, 420, 491 Monsanto, 79 Monster Cable, 320 Morgan Stanley, 531 Motorola, 396 MWH, 416
N Naismith College, 31 NASCAR, 397 National Aeronautics and Space
Administration (NASA), 311, 390, 451 National Basketball Association (NBA), 21 National Collegiate Athletic Association
(NCAA), 30, 72
National Football League (NFL), 137, 325, 461, 524
National Institute for Occupational Safety and Health (NIOSH), 126
Nationwide, 14 Netflix, 195, 196, 491, 512 Netimpact.org, 69 New Belgium Brewing, 512 New York Jets, 137 New York University, 212 New York Yankees, 21 Newsweek, 337 NFL (National Football League), 137, 325,
461, 524 Nike, 196, 219, 511 Nisshinbo Automotive, 35 Nisshinbo Holdings, 35 Nordstrom, 14, 97, 196 Nortel Networks, 523 Northwest Airlines, 509, 526 Novant Health, 512 Nucor, 359 NuStar Energy, 96
O Oakland Athletics (A’s), 21 Occidental Petroleum, 520 Occupational Information Network (O*NET),
34–35, 307, 309, 318, 329 Ohio State University, 453, 460 Oracle, 414, 484 Orpheus Chamber Orchestra, 394 Ortho-McNeil Pharmaceutical, 247
P Paramount Pictures, 178, 245 Participant Media, 129, 383 Patagonia, 516–517 Pennsylvania State University, 212 People for the Ethical Treatment of Animals
(PETA), 195 PepsiCo, 79, 414, 491 Perkins COIE, 97 PETA (People for the Ethical Treatment of
Animals), 195 Pfizer, 416 Philip Morris, 528 Pixar, 342, 343 Pizza Hut, 512 Praxair, 240 PricewaterhouseCoopers (PwC), 14, 61, 83,
144, 254 Principal Financial Group, 80 Principia Group, The, 511–512 Procter & Gamble (P&G), 79, 196, 338, 493 Publix, 14, 93, 117 Purdue University, 212 PwC (PricewaterhouseCoopers), 14, 61, 83,
144, 254
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585Company Index
coL27660_cidx_583-586.indd 585 11/01/17 07:52 AM
Q Quicken Loans, 14, 107 QuikTrip, 14
R Regus Group, 494 REI, 14 Ritz-Carlton, 46 RIVA, 135 RJR/Nabisco, 525 Robert W. Baird, 14 Rolling Stones, 342 Rypple, 49, 184
S Sabre Holdings, 66 Salary.com, 176 Salesforce.com, 196, 528 Salomon Brothers, 240 SAS, 14, 65–66, 67, 517 SeaWorld, 195, 221–222 Sheetz, 487 Shell Oil, 254, 516 Sigma Assessment Systems, 289 Simon & Schuster, 313 Smithsonian Design Museum, 125 Society for American Baseball Research
(SABR), 21 Sony, 490, 492, 493, 494, 495, 502 Southwest Airlines, 34–35, 196 Sports Authority, 288 Starbucks, 97, 196, 512 Summit Entertainment, 129, 272 Symantec, 184
T Taco Bell, 512 Target, 24, 288 TD Ameritrade Holding Corporation, 265 Tesla, 468 TestMaster, 289
Time, Inc., 450 Time Warner, 500, 525 Toyota Motor, 34, 339, 340, 494 Toys “R” Us, 288 Trader Joe’s, 93, 514 Transocean, 129 Travelocity, 66 TRW, 343 Twitter, 49, 72, 239, 389, 513
U Uber, 425–426, 468, 516 UBS, 495 United Airlines, 250–251, 397, 509, 532–533 U.S. Air Force, 39, 315, 427 U.S. Army, 39 U.S. Bureau of Labor Statistics, 62 U.S. Central Intelligence Agency (CIA),
311, 427 U.S. Department of Labor, 45 U.S. Federal Burea of Investigation (FBI), 305,
327–328 U.S. National Aeronautics and Space
Administration (NASA), 311, 390, 451 U.S. National Institute for Occupational Safety
and Health (NIOSH), 126 U.S. National Transportation Safety Board, 36 U.S. Navy, 219 U.S. Occupational Safety and Health
Administration (OSHA), 195 U.S. Office of Naval Research, 452 U.S. Postal Service, 397, 526 U.S. Securities and Exchange Commission
(SEC), 13, 177 U.S. Veterans Affairs Department, 206–207 U.S. Veterans Health Administration (VHA),
206–207 Universal Studios, 288 University of California at Berkeley, 212,
270–271 University of Connecticut, 31 University of Michigan, 244, 453 University of Minnesota, 267
UPS, 146, 512–513, 526 US Airways, 36 USAA, 196, 515
V Valve Corporation, 484 Verizon Business, 20 Verizon Communications, 20, 240, 254 Village People, 397 Vodafone, 420 Volvo Car Corporation, 525
W Walgreens, 30 Walmart, 24, 201, 219, 483 Walt Disney, 196, 427, 524 Wegman’s, 14 Weinstein, Company, 485 Wells Fargo, 30, 247, 519 Whataburger, 520 Whole Foods Market, 14, 337, 361–362, 484,
511, 513, 514 W.L. Gore, 487, 491 Wonderlic, 289, 323–325, 333 Workforce Management, 12 World Values Study Group, 198 Wyeth, Inc., 172
X Xerox, 146, 240, 241, 359, 495 Xonex Relocation, 143 XTO Energy, 516
Y Yahoo!, 146, 184, 512, 526 YouTube, 72 Yum Brands Inc., 512
Z Zappos, 411, 412, 413, 418, 420–421, 434 ZZ Top, 342
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- ORGANIZATIONAL BEHAVIOR
- About the Authors
- Preface
- Acknowledgments
- Text Features: OB Insert Boxes
- Additional Resources
- Brief Contents
- Table of Contents
- PART 1: INTRODUCTION TO ORGANIZATIONAL BEHAVIOR
- CHAPTER 1: What Is Organizational Behavior?
- What Is Organizational Behavior?
- Organizational Behavior Defined
- An Integrative Model of OB
- Does Organizational Behavior Matter?
- Building a Conceptual Argument
- Research Evidence
- So What's So Hard?
- How Do We "Know" What We Know About Organizational Behavior?
- Summary: Moving Forward in This Book
- TAKEAWAYS
- KEY TERMS
- DISCUSSION QUESTIONS
- CASE
- EXERCISE
- ENDNOTES
- CHAPTER 2: Job Performance
- Job Performance
- What Does It Mean to Be a "Good Performer"?
- Task Performance
- Citizenship Behavior
- Counterproductive Behavior
- Summary: What Does It Mean to Be a "Good Performer"?
- Trends Affecting Performance
- Knowledge Work
- Service Work
- Application: Performance Management
- Management by Objectives
- Behaviorally Anchored Rating Scales
- 360-Degree Feedback
- Forced Ranking
- Social Networking Systems
- TAKEAWAYS
- Key Terms
- DISCUSSION QUESTIONS
- CASE
- Exercise
- ENDNOTES
- CHAPTER 3: Organizational Commitment
- Organizational Commitment
- What Does It Mean to Be "Committed"?
- Types of Commitment
- Withdrawal Behavior
- Summary: What Does It Mean to Be "Committed"?
- Trends That Affect Commitment
- Diversity of the Workforce
- The Changing Employee-Employer Relationship
- TAKEAWAYS
- KEY TERMS
- DISCUSSION QUESTIONS
- CASE
- EXERCISE
- ENDNOTES
- Application: Commitment Initiatives
- PART 2: INDIVIDUAL MECHANISMS
- CHAPTER 4: Job Satisfaction
- Job Satisfaction
- Why Are Some Employees More Satisfied Than Others?
- Value Fulfillment
- Satisfaction with the Work Itself
- Mood and Emotions
- Summary: Why Are Some Employees More Satisfied Than Others?
- How Important Is Job Satisfaction?
- Life Satisfaction
- TAKEAWAYS
- KEY TERMS
- DISCUSSION QUESTIONS
- CASE
- EXERCISE
- ENDNOTES
- Application: Tracking Satisfaction
- CHAPTER 5: Stress
- Stress
- Why Are Some Employees More "Stressed" Than Others?
- Types of Stressors
- How Do People Cope with Stressors?
- The Experience of Strain
- Accounting for Individuals in the Stress Process
- Summary: Why Are Some Employees More "Stressed" Than Others?
- How Important Is Stress?
- Application: Stress Management
- Assessment
- Reducing Stressors
- Providing Resources
- Reducing Strains
- TAKEAWAYS
- KEY TERMS
- DISCUSSION QUESTIONS
- CASE
- EXERCISE
- ENDNOTES
- CHAPTER 6: Motivation
- Motivation
- Why Are Some Employees More Motivated Than Others?
- Expectancy Theory
- Goal Setting Theory
- Equity Theory
- Psychological Empowerment
- Summary: Why Are Some Employees More Motivated Than Others?
- TAKEAWAYS
- KEY TERMS
- DISCUSSION QUESTIONS
- CASE
- EXERCISE
- ENDNOTES
- How Important Is Motivation?
- Application: Compensation Systems
- CHAPTER 7: Trust, Justice, and Ethics
- Trust, Justice, and Ethics
- Why Are Some Authorities More Trusted Than Others?
- Trust
- Justice
- Ethics
- Summary: Why Are Some Authorities More Trusted Than Others?
- TAKEAWAYS
- KEY TERMS
- DISCUSSION QUESTIONS
- CASE
- EXERCISE
- ENDNOTES
- How Important Is Trust?
- Application: Social Responsibility
- CHAPTER 8: Learning and Decision Making
- Learning and Decision Making
- Why Do Some Employees Learn to Make Decisions Better Than Others?
- Types of Knowledge
- Methods of Learning
- Methods of Decision Making
- Decision-Making Problems
- Summary: Why Do Some Employees Learn to Make Decisions Better Than Others?
- TAKEAWAYS
- KEY TERMS
- DISCUSSION QUESTIONS
- CASE
- EXERCISE
- ENDNOTES
- How Important Is Learning?
- Application: Training
- PART 3: INDIVIDUAL CHARACTERISTICS
- CHAPTER 9: Personality and Cultural Values
- Personality and Cultural Values
- How Can We Describe What Employees Are Like?
- The Big Five Taxonomy
- Other Taxonomies of Personality
- Cultural Values
- Summary: How Can We Describe What Employees Are Like?
- How Important Are Personality and Cultural Values?
- Application: Personality Tests
- TAKEAWAYS
- KEY TERMS
- DISCUSSION QUESTIONS
- CASE
- EXERCISE
- ENDNOTES
- CHAPTER 10: Ability
- Ability
- What Does It Mean for an Employee to Be "Able"?
- Cognitive Ability
- Emotional Ability
- Physical Ability
- Summary: What Does It Mean for an Employee to Be ÒAbleÓ?
- How Important Is Ability?
- Application: Selecting High Cognitive Ability Employees
- TAKEAWAYS
- KEYTERMS
- DISCUSSION QUESTIONS
- CASE
- EXERCISE
- ENDNOTES
- PART 4: GROUP MECHANISMS
- CHAPTER 11: Teams: Characteristics and Diversity
- Team Characteristics and Diversity
- What Characteristics Can Be Used to Describe Teams?
- Team Types
- Variations Within Team Types
- Team Interdependence
- Team Composition
- Summary: What Characteristics Can Be Used to Describe Teams?
- How Important Are Team Characteristics?
- Application: Team Compensation
- TAKEAWAYS
- KEY TERMS
- DISCUSSION QUESTIONS
- CASE
- EXERCISE
- ENDNOTES
- CHAPTER 12: Teams: Processes and Communication
- Team Processes and Communication
- Why Are Some Teams More Than the Sum of Their Parts?
- Taskwork Processes
- Teamwork Proceses
- Communication
- Team States
- Summary: Why Are Some Teams More Than the Sum of Their Parts?
- How Important Are Team Processes?
- Application: Training Teams
- Transportable Teamwork Competencies
- Cross-Training
- Team Process Training
- Team Building
- TAKEAWAYS
- KEY TERMS
- DISCSSION QUESTION
- CASE
- EXERCISE
- ENDNOTES
- CHAPTER 13: Leadership: Power and Negotiation
- Leadership: Power and Negotiation
- Why Are Some Leaders More Powerful Than Others?
- Acquiring Power
- Using Influence
- Power and Influence in Action
- Negotiations
- Summary: Why Are Some Leaders More Powerful Than Others?
- How Important Are Power and Influence?
- Application: Alternative Dispute Resolution
- TAKEAWAYS
- KEY TERMS
- DISCUSSION QUESTIONS
- CASE
- EXERCISE
- ENDNOTES
- CHAPTER 14: Leadership: Styles and Behaviors
- Leadership: Styles and Behaviors
- Why Are Some Leaders More Effective Than Others?
- Leader Decision-Making Styles
- Day-to-Day Leadership Behaviors
- Transformational Leadership Behaviors
- Summary: Why Are Some Leaders More Effective Than Others?
- How Important Is Leadership?
- Application: Leadership Training
- TAKEAWAYS
- KEY TERMS
- DISCUSSION QUESTIONS
- CASE
- Exercise
- ENDNOTES
- PART 5: ORGANIZATIONAL MECHANISMS
- CHAPTER 15: Organizational Structure
- Organizational Structure
- Why Do Some Organizations Have Different Structures Than Others?
- Elements of Organizational Structure
- Organizational Design
- Common Organizational Forms
- Summary: Why Do Some Organizations Have Different Structures Than Others?
- How Important Is Structure?
- Application: Restructuring
- TAKEAWAYS
- KEY TERMS
- DISCUSSION QUESTIONS
- CASE
- EXERCISE
- ENDNOTES
- CHAPTER 16: Organizational Culture
- Organizational Culture
- Why Do Some Organizations Have Different Cultures Than Others?
- Culture Components
- General Culture Types
- Specific Culture Types
- Culture Strength
- Maintaining An Organizational Culture
- Changing An Organizational Culture
- Summary: Why Do Some Organizations Have Different Cultures Than Others?
- How Important Is Organizational Culture?
- Application: Managing Socialization
- TAKEAWAYS
- KEY TERMS
- DISCUSSION QUESTIONS
- CASE
- EXERCISE
- ENDNOTES
- INTEGRATIVE CASES
- GLOSSARY/SUBJECT INDEX
- NAME INDEX
- COMPANY INDEX
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- Preflight Ticket Signature
