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Concepts, Controversies, ·

Eighth Canadian

Edition

• • an1za 1ona

• e av1our

Concepts, Controversies, Applications

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Concepts, Controversies, Applications

Nancy Langton University of British Columbia

Stephen P. Robbins San Diego State University

Timothy A. Judge University of Notre Dame

1) Pearson •

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9780134645858

10 9 8 7 6 5 4 3 2 1

Library and Archives C ana da Cataloguing in Public ation

R obbins, Stephen P., 1943- , author O rganizational behaviour: concepts, controversies, applications I N ancy Langton (University of British Columbia), Stephen P. R obbins (San Diego State U niversity), Timothy A. J udge (University of Notre Daine) - 8th Canadian ed.

Includes index. ISBN 978-0-13-464585-8

1. O rganizational behavior-Textbooks. 2. M anagement-Textbooks. l. Langton, N ancy, author II. Judge, Tim, author Ill. Title.

Q E28.2.T37 201 1 550 C 2010-905691-4

'i> Pearson •

BRIEF CONTENTS

PART 1 Understanding the Workplace

CHAPTER 1 CHAPTER 2 CHAPTER 3

What Is Organizational Behaviour? Perception, Personality, and Emotions Values, Attitudes, and Diversity in the Workplace

OB ON THE EDGE Stress at Work

PART 2 Striving for Performance

PART 3

CHAPTER 4 Theories of Motivation CHAPTER 5 Motivation in Action CHAPTER 6 Groups and Teamwork OB ON THE EDGE Trust

Interacting Effectively

CHAPTER 7 CHAPTER 8 CHAPTER 9

Communication Power and Pol itics Conflict and Negotiation

OB ON THE EDGE Workplace Bullying

PART 4 Sharing the Organizational Vision

CHAPTER 10 Organizational Culture CHAPTER 11 Leadership CHAPTER 12 Decision Making, Creativity, and Ethics OB ON THE EDGE Spiritua lity in the Workplace

PART 5 Reorganizing the Workplace

CHAPTER 13 Organizational Structure CHAPTER 14 Organizational Change

ADDITIONAL CASES ENDNOTES GLOSSARY/SUBJECT INDEX NAME AND OR GANIZATION INDEX LIST OF CANADIAN COMPANIES, BY PROVINCE

520 548 610 629 638

2 36 80

116

124 124 162 198 240

246 246 274 310 344

350

350 382 414 450

456 456 490

CONTENTS

PART 1

PREFACE ABOUT THE AUTHORS

Understanding the Workplace

CHAPTER 1 What Is Organ izational Behaviou r? The Importance of Interpersonal Skills Defining Organizational Behaviour

What Do We Mean by Organization? OB Is for Eveiyone

Complementing Intuition with Systematic Study Big Data

Disciplines That Contribute to the OB Field The Building Blocks of OB The Rigour of OB

OB Has Few Absolutes OB Taf1es a Contingency Approach

Challenges and Opportunities in the Canadian Workplace Economic Pressures Continuing Globalization Understanding Worf1force Diversity Customer Service People Skills Networked Organizations Social Media Enhancing Employee Well-Being at Work Creating a Positive Work Environment Ethical Behaviour

Coming Attractions: Developing an OB Model An Overview Inputs Processes Outcomes

Summary 08 at Work FOR REVIEW • FOR MANAGERS • FOR YOU

POINT/COUNTIRPOINT: The Battle of the Texts BREAKOUT GROUP EXERCISES EXPERIENTIAL EXERCISE: Managing the OB \,\fay

ETHICAL DILEMMA: There's a Drone in Your Soup CASE INCIDENT: Apple Goes Global CASE INCIDENT: Big Data for Dummies FROM CONCEPTS TO SKILLS: Developing /111erpersonal Skills

XVII

XXIX

s s 6

6 7

9 9

11 11

12 12 13 14 16 16 16 17 17 18 19 19 20 20 20 21

25 27 28 29 29 30 31 31 32

Contents vii

CHAPTER 2 Perception , Personality, and Emotions 36 Perception 38

Factors That Influence Perception 38 Perceptual Errors 39 Why Do Perception and Judgment Matter? 46

Personality 47 What Is Personality? 47 Measuring Personality 47 Personality Determinants 48 Personality Traits 48 The Dark Triad 54 Other Personality Attributes That Influence OB 56 Situation Strength Theory 59

Emotions 60 What Are Emotions and Moods? 60 Moral Emotions 61 Choosing Emotions: Emotional Labour 62 Why Should We Care About Emotions in the Workplace? 63

Global Implications 68 Perception 68 Attributions 69 Personality 69 Emotions 69

Summary 70 OB at Work FOR REVIEW • FOR MANAGERS • FOR YOU 72

POINT/COUNTIRPOINT: Sometimes Yelling Is for Everyone's Good 73 BREAKOUT GROUP EXERCISES 74 EXPERIENTIAL EXERCISE: \,\'ho Om Catch a Liar? 74 ETMICAL DILEMMA: Happiness Coaches for Employees 74 CASE INCIDENT: The Power of Quiet 75 CASE INCIDENT: Tall Poppy Syndrome 76 FROM CONCEPTS TO SKILLS: Rending Emotions 77

CHAPTER 3 Values, Attitudes, and Diversity in the Workplace 80 Va lues 82

Rokeach Value Survey 82 Hodgson's General Moral Principles 83

Assess ing Cultural Values 83 Hofstede's Framework for Assessing Cultures 83 The GLOBE Framework for Assessing Cultures 86

Va lues in the Canadian Workplace 86 Generational Differences 86 Cultural Differences 88

Attitudes 89 Job Satisfaction 90 Organizational Commitment 96 Job Involvement 96 Perceived Organizational Support 97 Employee Engagement 98

Managing Divers ity in the Workplace 99 Effective Diversity Programs 100 Cultural Intelligence 103

v iii Contents

PART 2

Global Implications 106 ls Job Satisfaction a North American Concept? 106 Are Emplo)'ees in Western Cultures More Satisfied with Their Jobs? 106 ls Diversity Managed Different!)' across Cultures? 107

Summary 107 08 at Work

DB ON THE EDGE Stress at Work

Striving for Performance

FOR REVIEW • FOR MANAGERS • FOR YOU POINT/COUNTIRPOINT: Millem,ials Haiie Inflated Images

of 11,emselves Compared to Their Parents

BREAKOUT GROUP EXERCISES EXPERIENTIAL EXERCISE: Feeling Excluded ETMICAL DILEMMA: Tell-All Websites

CASE INCIDENT: Job Crafting CASE INCIDENT: Walking the Walk FROM CONCEPTS TO SKILLS: Changing Attitudes

CHAPTER 4 Theories of Motivation What Is Motivation? Needs Theories of Motivation

Maslow's Hierarchy of Needs Theory Trvo· Factor Theory McClelland's Theory of Needs Summarizing Needs Theories

Process Theories of Motivation Expectancy Theor)' Goal-Setting Theory Self-Efficacy Theory Reinforcement Theory

Responses to the Reward System Equity Theory Fair Process and Treatment Self-Determination Theory Increasing Intrinsic Motivation

Motivation for Whom? Job Engagement Putting It All Together

Global Implications Needs Theories Goal-Setting Theory Equity Theory and Fairness Justice Intrinsic and Extrinsic Motivation Cross-Cultural Consistencies

Summary 08 at Work FOR REVIEW • FOR MANAGERS • FOR YOU

POINT/COUNTIRPOINT: Coals Get You to ~\'here You Want to Be BREAKOUT GROUP EXERCISES

EXPERIENTIAL EXERCISE: OrganiZlltional Justice ETHICAL DILEMMA: The New CPA CASE INCIDENT: &Juity and Executi,ie Pay CASE INCIDENT: Wage Reduction Proposal FROM CONCEPTS TO SKILLS: Setting Coals

109

llO lll lll ll2 ll2 ll3 ll4

116

124

126 127 128 128 130 131 133 134 137 140 141 143 144 146 148 149 150 151 152 152 152 153 153 153 154 154 154

156 157 158 158 158 159 160 160

Contents ix

CHAPTER 5 Motivation in Action 162 From Theory to Practice: The Role of Money 164 Creating Effective Reward Systems 164

What to Pay: Establishing a Pay Structure 164 How to Pay: Rewarding Individuals through Variable-Pay Programs 165 Flexible Benefits: Developing a Benefits Package 170 Intrinsic Rewards: Employee Recognition Programs 171 Beware the Signals That Are Sent by Rewards 172

Motivating by Job Redesign 17 4 The Job Characteristics Model 17 4 Job Redesign in the Canadian Context: The Role of Unions 177 How Can Jobs Be Redesigned? 177 Relational Job Design 178 Alternative Work Arrangements 180 Flextime 180

Employee Involvement and Participation 184 Examples of Employee Involvement Programs 185 Linf1ing Employee Involvement Programs and Motivation Theories 186

Motivation: Putting It All Together 186 Global Implications 186

Variable Pay 18 7 Flexible Benefits 18 7 Job Characteristics and Job Enrichment 187 Telecommuting 188 Employee Involvement 188

Summary 188 OB at Work FOR REVIEW • FOR MANAGERS • FOR YOU

POINT/COUNTIRPOINT: 'Face-Time' Matters BREAKOUT GROUP EXERCISES EXPERIENTIAL EXERCISE: Anal)'zing and Redesigning Jobs ETMICAL DILEMMA: Are CEOs Paid Too Much? CASE INCIDENT: Motivation for Leisure CASE INCIDENT: Pay Rnises Every Day FROM CONCEPTS TO SKILLS: Designing Enriched Jobs

CHAPTER 6 Groups and Teamwork Teams vs. Groups: What Is the Difference?

Why Have Teams Become So Popular? Types of Teams

From Individual to Team Member Roles Norms

Stages of Group and Team Development The Five-Stage Model The Punctuated-Equilibrium Model

Creating Effective Teams Context Composition Team Processes

Beware! Teams Are Not Always the Answer Global Implications

Team Cultural Diversity and Team Performance Group Cohesiveness

Summary

190 191 192 192 193 194 194 195

198

200 200 200

204 206 207

211 211 213

216 218 221 226

230

230 230 231

231

x Contents

PART 3

OB at Work FOR REVIEW • FOR MANAGERS • FOR YOU 233 POINT/COUNTIRPOINT: To Get 11ie Most Out of Teams, Empower Them 234 BREAKOUT GROUP EXERCISES 235 EXPERIENTIAL EXERCISE: 71ie Paper Tower Exercise 235 ETMICAL DILEMMA: Dealing wi1h Shirkm 235 CASE INCIDENT: Tongue-Tied in Teams 236 CASE INCIDENT: lntragroup TniSI and Suroival 237 FROM CONCEPTS TO SKILLS: Omducting a Team Meeting 238

OB ON THE EDGE Trust 240

Interacting Effectively

CHAPTER 7 Communication The Communication Process

Choosing a Channel Barriers to Effective Communication

Filtering Selective Perception Information Overload Emotions Language Silence Lying

Organizational Communication Direction of Communication Small-Group Networks The Grapevine

Modes of Communication Oral Communication Written Communication Nonverbal Communication

Global Implications Cultural Barriers to Communication Cultural Context A Cultural Guide

Su mmary OB at Work FOR REVIEW • FOR MANAGERS • FOR YOU

POINT/COUNTIRPOINT: Employees' Social Media Presence

246

248 248 251 251 251 252 252 252 253 253 254 254 255 256 257 257 258 262 263 263 264 264 266

267

Should Matter 10 Managers 268 BREAKOUT GROUP EXERCISES 269 EXPERIENTIAL EXERCISE: An Absence of Nonverbal Comm1mica1ion 269

ETHICAL DILEMMA: BYOD 269 CASE INCIDENT: Organiza1ional Leveraging of Social Media 270 CASE INCIDENT: PowerPoi111 Purga1ory 271 FROM CONCEPTS TO SKILLS: Effective LiSlening 272

CHAPTER 8 Power and Politics A Definition of Power Bases of Power

Formal Power Personal Power Which Bases of Power Are Most Effective?

274

276 277 277 278 279

Dependence: The Key to Power The General Dependence Post11late What Creates Dependence?

Influence Tactics Abo11t Infl11ence Tactics Applying Infl11ence Tactics

How Power Affects People Power Variables Harassment: Une411al Power in the Workplace

Empowerment: Giving Power to Employees Definition of Empowerment

Politics: Power in Action Definition of Political Behavio11r The Rea.lity of Poli tics Impression Management The Ethics of Behaving Politically

Global Implications Views on Empowerment Preference for Infl11ence Tactics

Summary OB at Work FOR REVIEW • FOR MANAGERS • FOR YOU

POINT/COUNTIRPOINT: EVl!T),me Wants Power BREAKOUT GROUP EXERCISES EXPERIENTIAL EXERCISE: Comparing Influence Tactics CTHICAL DILEMMA: How Much Should You Defer to Those in Power! CASE INCIDENT: Delegate Power; or Keep It Close! CASE INCIDENT: Barry's Peer Becomes His Boss FROM CONCEPTS TO SKILLS: Politicking

CHAPTER 9 Conflict and Negotiation Conflict Defined

F11nctional vs. Dysf11nctiona.l Conflict Types of Conflict Loci of Conflict So11rces of Conflict

Conflict Resolution Conflict Management Strategies Based on Dual Concern Theory What Can lndivid11als Do to Manage Conflict? Resolving Persona.lity Conflicts

Conflict Outcomes Negotiation

Bargaining Strategies How to Negotiate

Individual Differences in Negotiation Effectiveness Personality Traits in Negotiation Moods/Emotions in Negotiation Gender Differences in Negotiation

Negotiating in a Social Context Reputation Relationships

Third-Party Negotiations Mediator Arbitrator

Contents xi

280 280 281 282 283 283 284 285 285 288 289 291 291 292 294 298 299 300 300 301

302 303 304 304 304 305 306 306

310

312 312 312 314 315 317 317 318 320 320 321 323 325 327 327 329 330 332 332 333 333 333 334

xii Contents

PART 4

Conciliator Global Implications

Conflict Resolution. and Culture Cultural Differences in. Negotiating Style Culture, Negotiations, and Emotions

Summary OB at Work FOR REVIEW • FOR MANAGERS • FOR YOU

334 334 334 335 335 335

337 POINT/COUNTIRPOINT: Pro Sports Strikes Are Caused by Greedy Owners 338 BREAKOUT GROUP EXERCISES 339 EXPERIENTIAL EXERCISE: A Negotiation Role Play 339 ETMICAL DILEMMA: The Lowba/1 Applicant 340 CASE INCIDENT: Disorderly Conduct 340 CASE INCIDENT: The Pros and Cons of Collective Bargai11ing 341 FROM CONCEPTS TO SKILLS: Negotiating 342

OB ON THE EDGE Worf1place Bullying 344

Sharing the Organizational Vision

CHAPTER 10 Organizational Cu lture What Is Organizational Culture?

Culture Is a Descriptive Term Do Organizations Have Uniform Cultures? Strong us. Weak Cultures Culture us. Formalization

What Do Cultures Do? Culture's Functions Culture Creates Climate The Ethical Dimension of Culture Culture and Sustainability Culture and Innovation Culture as a Liability

Creating and Sustaining an Organization's Culture How a Culture Begins Keeping a Culture Alive

How Employees Learn Culture Stories Rituals Material Symbols Language

Changing Organizational Culture Creating an Ethical Organizationa.l Culture Creating a Positive Organizational Culture

Global Implications Summary

OB at Work FOR REVIEW • FOR MANAGERS • FOR YOU POINT/COUNTIRPOINT: Orga11izntiom Should Stri,ie to Create

350

352 352 353 354 354 354 354 355 355 357 358 359 360 361 361 366 367 367 367 367 368 369 370 372 373

374

a Positive Organizatio11al Cul111re 375 BREAKOUT GROUP EXERCISES 376 EXPERIENTIAL EXERCISE: Greeting Newcomers 376 ETMICAL DILEMMA: Culture of Deceit 377 CASE INCIDENT: The Place Makes the People 377 CASE INCIDENT: Active Cul111res 378 FROM CONCEPTS TO SKILLS: How to 'Read' a11 Organization's Culture 379

CHAPTER 11 Leadership What Is Leadership? Leadership as Supervision

Trait Theories: Are Leaders Different from Others? Behavioural Theories: Do Leaders Behave in Particular Ways? Summary of Trait Theories and Behavioural Theories Contingency Theories: Does the Situation Matter?

Inspirational Leadership Charismatic Leadership Transactional and Transformationa.l Leadership

Responsible Leadership Authentic Leadership Ethical Leadership Servant Leadership Mentoring

Challenges to Our Understanding of Leadership Leadership as an Attribution Substitutes for and Neutralizers of Leadership Online Leadership

Global Implications How to Lead Servant Leadership

Summary OB at Work FOR REVIEW • FOR MANAGERS • FOR YOU

POINT/COUNTIRPOINT: Heroes Are Made, Not Bom BREAKOUT GROUP EXERCISES EXPERIENTIAL EXERCISE: \,\'hat ls Leadership! CTHICAL DILEMMA: Smoki11g Success CASE INCIDENT: Leaders/tip Mettle Forged i11 Battle CASE INCIDENT: Leaders/tip by Algorithm FROM CONCEPTS TO SKILLS: Practising to be Charismatic

CHAPTER 12 Decis ion Making, Creativity, and Ethics How Should Decisions Be Made?

The Rational Decision-Making Process How Do Individuals Actually Make Decisions?

Bounded Rationality in Considering Alternatives Intuition Judgment Shortcuts

Group Decision Making Groups vs. the Individua.l Groupthink and Groupshift Group Decision-Making Techniques

Creativity in Organizational Decision Making Creative Behaviour Causes of Creative Behaviour Creative Outcomes (Innovation)

What About Ethics in Decision Making? Four Ethical Decision Criteria Making Ethical Decisions

Global Implications Decision Making

Contents xiii

382

384 384 384 386 387 388 392 392 394 398 399 399 400 401 403 403 404 404 405 405 405 406

407 408 409 409 409 410 410 411

414

416 416 417 418 420 421 425 425 426 429 430 431 432 434 435 435 437 440 440

xiv Contents

PART 5

Creativity Ethics

Summary OB at Work FOR REVIEW • FOR MANAGERS • FOR YOU

440 440 441

442 POINT/COUNTIRPOINT: People Are More Creative W/Je11 T/Jey \,\fork Alo11e 443 BREAKOUT GROUP EXERCISES 444 EXPERIENTIAL EXERCISE: \.Vildemess Survival 444 ETHICAL DILEMMA: Five Ethical Decisiom: Wltat Would You Do! 446 CASE INCIDENT: T/Je You11gest Female Self-Made Billio11aire 446 CASE INCIDENT: lf1ivo Heads Are Better 11ia11 011e, Are Four Eve11 Better! 447 FROM CONCEPTS TO SKILLS: Solvi11g Problems Creative/)' 448

OB ON THE EDGE Spirituality in the Workplace 450

Reorganizing the Workplace

CHAPTER 13 Organizational Structure What Is Organizational Structure?

Work Specialization Departmentalization Chain of Command Span of Control Centralization and Decentralization Formalization Boundary Spanning

Common Organizational Designs The Simple Structure The Bureaucracy The Matrix Structure

Alternate Design Options The Virtual Structure The Team Structure The Circular Structure The Leaner Organization: Do111nsizing

Why Do Structures Differ? Organizational Strategies Organizational Size Technology Environment Institutions

Organizational Designs and Employee Behaviour Global Implications

Culture and Organizationa.l Structure Culture and Emplo)'ee Structure Preferences Culture and the Impact of Downsizing

Summary OB at Work FOR REVIEW • FOR MANAGERS • FOR YOU

456

458 458 459 461 462 463 464 464 465 466 466 468 469 470 471 473 473 474 475 476 476 477 478 478 480 480 481 481 481

483 POINT/COUNTIRPOINT: Tlte E11d of Ma11ageme11t 484 BREAKOUT GROUP EXERCISES 485 EXPERIENTIAL EXERCISE: 71te Sa11dwiclt Sltop 485 ETHICAL DILEMMA: Post·Mille1111ium Te11sio11s i11 tlte Flexible Orga11izatio11 486 CASE INCIDENT: Creative Deviance: Bucking tlte Hieran;ltyl 486 CASE INCIDENT: 'l Detest Bureaucracy' 487 FROM CONCEPTS TO SKILLS: Delegating Autltorit)' 488

CHAPTER 14 Organizational Change Forces for Change

Opportunities for Change Change Agents

Approaches to Managing Change Lewin's Three-Step Model Kotter's Eight-Step Plan for Implementing Change Action Research Appreciative Inquiry

Resistance to Change Individual Resistance Organizational Resistance Overcoming Resistance to Change The Politics of Change

Creating a Culture for Change Managing Paradox Stimulating a Culture of Innovation Creating a Leaming Organiza.tion

Global Implications Su mmary

OB at Work FOR REVIEW • FOR MANAGERS • FOR YOU

Contents xv

490

492 493 494 494 495 496 497 498 500 500 501 502 sos 506 506 507 509 511 512

513 POINT/COUNTERPOINT: Orga11izational Clia11ge Is Like Saili11g Calm Waters 514 BREAKOUT GROUP EXERCISES 515 EXPERIENTIAL EXERCISE: Strategizing Change 515

ETHICAL DILEMMA: Cha11ges at the Television S1atio11 516 CASE INCIDENT: Sprnci11g Up Walmart 517 CASE INCIDENT: When Compa11ies Fail 10 C/Ja11ge 517 FROM CONCEPTS TO SKILLS: Carryi11g 0111 Organizatio11al Cha11ge 518

ADDITIONAL CASES 520 ENDNOTES 548 GLOSSARY/SUBJECT INDEX 610 NAME AND ORGANIZATION INDEX 629 LIST OF CANADIAN COMPANIES, BY PROVINCE 638

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PREFACE

Welcome lo the eighth Canadian edition of Organizacional Behaviour. Since its arrival in Canada, Organizational Behaviour has enjoyed widespread acclaim across the country for its rich Canadian content and has quickly established iL~elf as the leading text in the field.

Organizational Behaviour, Eighth Canadian edition, is truly a Canadian product. Whi le it draws upon the strongest aspects of its American cousin, it expresses its own vision and voice. It provides the context for understanding organizational behaviour {OB) in the Canadian workplace and highlights the many Canadian contributions to the field. Indeed, it goes a step further than most OB texts prepared for the Canadian marketplace.

Specifically, il asks, in many instances:

• How does th is theory apply in the Canadian \vorkplace of today?

• What are the implications of the theory for managers and employees working in the twenty-first century?

• What are the implica tions of the theory for everyday life? OB, after all, is not something that applies only in the workplace.

This text is sensitive to important Canadian issues. Subject matter reflects the broad multicultural flavour of Canada and also highlights the ro les of women and visible minorities in the workplace. Examples reflect the broad range of organizations in Canada: large, small, public and private sector, unionized and non-unionized.

Organizational Behaviour continues lo be a vibrant and relevant text because it's a product of the Canadian classroom. It is used in Canada by the first author and her col- leagues. Thus, there is a •front-line" approach to considering revisions. We also solicit considerable feedback from OB instructors and studenL~ throughout the country. While we have kept the features of the previous edition that adopters continue lo say they like, there is also a grea t deal that is new.

Key Changes to the Eighth Canadian Edition The eighth edition was designed to evolve with today's students. There are more relevant examples, updated theory coverage, and a continued emphasis on providing the latest research findings. Based on reviews from numerous instructors and students across Canada, we have found that many potential users want chapters that have the right bal- ance of theory, research, and appl ication material, while being relevant lo student learning.

• NEW feature in every chapter' Career Objectives offers advice in a question- and-answer format to help students think through issues they may face in the workforce today.

• NEW Opening Vigneue in every chapter brings current business trends and events to the forefront.

• NEW key terms presented in bold throughout the text highlight new vocabu- lary pertinent lo today's s tudy of organizational behaviour.

• NEW photos and captions in every chapter link the chapter content to con- temporary real-life worldwide situations to enhance the student's understand- ing of hands-on application of concepts.

xviii Preface

• NEW These features are either completely ne,v or substantially updated with in each chapter as applicable to reflect ongoing challenges in business worldwide and focus the student's attention on new topics:

• Learning Objectives

• Exhibits

• Point/Counterpoint

• NEW The followi ng end-of-chapter material is either completely ne,v or sub- stantially revised and updated for each chapter to bring the most contempo- rary thinking to the attention of students:

• Summary

• OB at Work: For Review

• OB at Work: For Managers

• Experiential Exercise

• Ethical Dilemma

• Case Incidents

Chapter-by-Chapter Changes Chapter 1: What Is Organizational Behaviour?

• Revised Lean1ing 011tco1nes

• New Opening Vigneue (Target's fa ilure in Canada)

• New research in The Importance of Interpersonal Skills

• New research in Big Data

• New feature! Career Objectives (What Do I Say About My Termination?)

• New Point/Counterpoint (The Battle of the Texts)

• New Experiential Exercise (Managing the OB Way)

• New Ethical Dilemma (There's a Drone in Your Soup)

• Updated Case Incident (Apple Goes Global)

• New Case Incident (Big Data for Dummies)

Chapter 2: Perception, Personality, and Emotions

• New Opening Vigneue (Michele Romanow)

• New section in The Myers-Briggs Type Indicator

• New research and discussion in The Big Five Personality Model

• New sections on Big Five personality tra it research: Conscientiousness, Emotional Stabi lity, Extraversion, Openness to Experience, and Agreeableness

• New research in The Dark Triad

• New major section: O ther Traits ( on traits that are socially undesirable)

• New research and discussion in Moral Emotions

Preface xix

• New research and d iscussion in Choosing Emotions: Emotional Labour

• New section: Emotion Regulation Techniques

• New feature! Career Objectives (So What If I'm a Few Minutes Late to Work?)

• New Point/Counterpoint (Sometimes Yelling Is for Everyone's Good)

• New Case Incident (The Power of Quiel)

• New Case Incident (Tall Poppy Syndrome)

Chapter 3: Values, Attitudes, and Diversity in the Workplace

• New Opening Vigneue (Ladies Learning Code)

• New research in What Causes Job Satisfaction?

• New section: Job Conditions

• New section: Personality

• New section: Pay

• New section: Life Satisfaction

• New major section: Counterproductive Work Behaviour (CWB)

• New feature! Career Objectives (Is ll Okay lo Be Gay at Work?)

• New Point/Counterpoint (Millennials Have Inflated Images ofThemselves Compared lo Their Parents)

• New Ethical Dilemma (Tell-All Websites)

• New Case Incident (Job Crafting)

• New Case Incident (Walking lhe Walk)

OB on the Edge: Stress at Work

• New Opening Vignette (workspaces are not for ea ting)

• Updated list of The Most and Least Stressful Jobs

• New research in Causes of Stress

• New research and d iscussion in Organizational Approaches

Chapter 4: Theories of Motivation

• Revised Lean1ing 011tco1nes

• New Opening Vigneue (Lee Valley Tools)

• New research and d iscussion in Maslow's Hierarchy of Needs Theory

• New international research and d iscussion in McClelland's Theory of Needs

• New feature! Career Objectives (Why Won't He Take My Advice?)

• New research and d iscussion in Self-Determination Theory

• New Global Impl ications section: Justice

• New Ethical Dilemma (The New GPA)

xx Preface

Chapter 5: Motivation in Action

• New Opening Vignette (G Adventures)

• New research and discussion in Job Rotation

• New section and research in Relational Job Design

• New research in Flextime

• New feature! Career Objectives (How Can I Get Flextime?)

• New research and discussion in Telecommuting

• New in ternational research and discussion in Employee Involvement and Participation

• New research in Participative Management

• New research in Representative Participation

• New international research and new discussion in How lo Pay: Reward ing Individual Employees through Variable-Pay Programs

• New research in Merit-Based Pay

• New international research in Bonuses

• New research in Profit-Sharing Plans

• New research in Employee Stock Ownership Plans

• New material and international research in Flexible Benefits: Developing a Benefits Package

• New research in Intrinsic Rewards: Employee Recognition Programs

• New Case Incident (Pay Raises Every Day)

Chapter 6: Groups and Teamwork

• New Opening Vignette (Summerlunch+)

• New research and discussion in Why Have Teams Become So Popular?

• New discussion in Problem-Solving Teams

• New research in Cross-Functional Teams

• New research in Virtual Teams

• New research and discussion in Multiteam Systems

• New international research in Cl imate ofTrust

• New material in Composition (of teams)

• New research and discussion in Personal ity of Members

• New section: Cultural Differences

• New section: Positive Norms and Group O utcomes

• New section: Negative Norms and Group Outcomes

• New section: Team Identity

• New section: Team Cohesion

• New in ternational research and discussion in Mental Models

• New international research and d iscussion in Conflict Levels

• New feature! Career Objectives ( Can I Fudge the Numbers and Not Take the Blame?)

• Revised Ethical Dilemma (Deal ing with Shirkers)

• New Case Incident (Intragroup Trust and Survival)

OB on the Edge: Trust

• Revised section: What Can Leaders Do to Increase Trust?

• New discussion in Building Team Trust

• New major section: The Need to Prevent Lying

Chapter 7: Communication

• Revised Lean1ing 011tco1nes

• New Opening Vigneue {Slack)

• New research in Downward Communication

• New research and d iscussion in The Grapevine

• New major section: Modes of Communication

• New section: Oral Communication

• New section: Meetings

• New section: Videoconferencing and Conference Call ing

• New section: Telephone

• New section: Wriuen Communication

• New section: Letters

• New section: PowerPoinl

• New research in Social Media

• New section: Apps

• New research in Biogs

• New feature! Career Objectives (Isn't This Disability Too Much to Accommodate?)

• New Ethical Dilemma (BYOD)

• Updated Case Incident {Organizational Leveraging of Social Media)

Chapter 8: Power and Politics

• Revised Lean1ing 011tco1nes

• New Opening Vigneue (Jian Ghomeshi)

• New international research and d iscussion in Sexual Harassment

• New research in Impression Management

• New feature! Career Objectives {Should I Become Political?)

• New Experiential Exercise {Comparing Influence Tactics)

Preface xxi

xxii Preface

Chapter 9: Conflict and Negotiation

• New Opening Vignette (GM Canada and Unifor)

• New international research in Personal Variables

• New major section: Negotiating in a Social Context

• New research and d iscussion in Gender Differences in Negotiation

• New research in Conflict Resolution and Culture

• New feature! Career Objectives (How Can I Get a Better Job?)

• Revised For Managers

• New Point/Counterpoint (Pro Sports Strikes Are Caused by Greedy Owners)

• New Case Incident (Disorderly Conduct)

OB on the Edge: Workplace Bullying

• New Opening Vignette (The Vancouver School Board)

• New research in Workplace Violence

• New research in the box Do You Have a Bad Boss7

• Updated statistics in What Are the Effects of Incivi lity and Toxici ty in the Workplace?

Chapter 10: Organizational Culture

• Revised Lean1ing 011tco1nes

• New Opening Vignette (Hyatt Hotels)

• New discussion in What Is Organizational Culture?

• New section: Culture and Sustainability

• Updated research in Culture and Innovation

• New section: Strengthening Dysfunctions

• New research in Barriers to Acquisitions and Mergers

• New feature! Career Objectives (How Do I Learn to Lead?)

• New Experiential Exercise (Greeting Newcomers)

• New Echical Dilemma (Culture of Deceit)

• New Case Incident (The Place Makes the People)

• New Case Incident (Active Cultures)

Chapter 11 : Leadership

• New Opening Vignette (Kelly Lovell)

• New international research in Trail Theories: Are Leaders Different from Others?

• New research in What Is Charismatic Leadership?

• New research in Transactional and Transformational Leadership

• New research in How Transformalional Leadership Works

• New section: Transformalional vs. Charismatic Leadership

• New research in Servant Leadership

• New fealure! Career Objectives (How Can I Get My Boss to Be a Beiler Leader?)

• New Experiential Exercise (What Is Leadership?)

• New Ethical Dilemma (Smoking Success)

• New Case Incident (Leadership Mettle Forged in Battle)

Chapter 12: Decision Making, Creativity, and Ethics

• New Opening Vignette (TD Bank)

• New sections created wilh new research and d iscussion: Intell igence and Creativity, Personality and Creativity, Expertise and Creativity, and Elhics and Creativity

• New section: Creative Environment

• New international research and d iscussion in Four Elhical Decis ion Criteria

• New fealure! Career Objectives (How Can I Make My Job Beller?)

OB on the Edge: Spirituality in the Workplace

• New Opening Vigneue (The Good Spiril)

• New research in Spiriluality and Mindfulness

• New discussion in Achieving a Spiritual Organizalion

Chapter 13: Organizational Structure

• Updated Leaming Outcomes

• New Opening Vignette (Precis ion Nutrilion)

• New section: Boundary Spanning

• New section: The Functional Slructure

• New section: The Divisional Structure

• New section: The Team Slructure

• New section: The Circular Structure

• New section: Institutions

• New feature! Career Objeccives (Whal Slructure Should I Choose7)

• New Experiential Exercise (The Sandwich Shop)

• New Ethical Dilemma (Post-Millennium Tensions in lhe Flexible Organization)

Chapter 14: Organizational Change

• New Opening Vigneue (Cirque du Soleil)

• New d iscussion in Forces for Change

Preface xxiii

• We have continued to integrate a series of relevant and helpful questions throughout the chapters to encourage students to think about how OB appl ies to their everyday lives and engage students in their reading of the material. These questions first appear as a bullet list in the chapter opener, under the heading OB Is for Everyone, and then appear throughout each chapter.

• The Global Implications section addresses and highl ights how OB principles vary across cultures.

• Summary provides a review of the key points of the chapter, whi le the Snapshot Summary provides a study tool that helps students to see the overall connections among concepts presented with in each chapter.

• Each chapter concludes with OB at Work, a set of resources designed to help students apply the lessons of the chapter. Included in OB al Work are the fol- lowing features:

• For Revie,v poses a series of questions that are linked to the learning outcomes identi fied in the chapter opener.

• For Managers outlines ways that managers can apply OB in the workplace.

• For You outlines how OB can be used by individuals in their daily lives.

• Point/Counterpoint promotes debate on contentious OB issues. This feature presents more focused arguments.

• Breakout Group Exercises, Experiential Exercise, and Ethical Dilemma are valuable application exercises for the classroom. The many new exer- cises included here are ones that we have found particularly stimulating in our own classrooms. Our s tudents say they like these exercises and they learn from them.

• Case Incidents (two per chapter) dea l with real-world scenarios and require students to exercise their decision-making skills. Each case enables an instructor to quickly generate class discussion on a key theme within the chapter.

• From Concepts to Skills provides a wide range of appl ications for stu- dents. The section begins with a practical set of tips on topics such as read ing emotions, setting goals, and solving problems creatively, which demonstrate real-world applica tions of OB theories. These tips are fol- lowed by the features Practising Skills and Reinforcing Skills. Practising Sliills presents an additional case or group activity to apply the chapter's learning outcomes. Reinforcing Skills asks students to talk about the material they have learned with others, or to apply it to their own per- sonal experiences.

• Exclusive to the Canadian edition, OB on the Edge (following each part) takes a close look at some of the hottest topics in the field: work-related stress, trust, behavioural pathologies that can lead to workplace bullying, and spiri- tua lity in the workplace. Since this is a stand-alone feature, these topics can be introduced at the instructor's discretion.

• Our reviewers have asked for more cases, and more comprehensive and inte- grated cases. To address this request, we have included 10 Addi tional Cases that feature a variety of challenges and organizations. All of these cases require students to apply material from a variety of chapters.

Preface xxv

xxvi Preface

Supplements Mylab Management My Lab Management is an onl ine study tool for students and an online homework and assessment Looi for faculty. MyLab Management lets students assess their understand- ing through auto-graded tests and assignments, develop a personal ized study plan to address areas of weakness, and practise a variety of learning tools to master management principles. New and updated MyLab Management resources include the following:

• Personal Inventory Assessment (PIA). Students learn beuerwhen they can con- nect what they are learning to their personal experience. PIA is a collection of online exercises designed lo promote self-reflection and engagement in students, enhancing their ab ility lo connect with concepts taught in principles of management, organizational behaviour, and human resource management classes. Assessments can be assigned by instructors, who can then track stu- dents' completions. Student results include a wrillen explana tion along with a graphic display that shows how their results compare to the class as a whole. Instructors will also have access to this graphic representation of resu lts lo pro- mote classroom discussion.

• Updated Personalized Study Plan. As students work through MyLab Manage- ment's Study Plan, they can clearly see which topics they have mastered- and, more importantly, which they need lo work on. Each question has been care- fully wrillen to match the concepts, language, and focus of the text, so students can get an accurate sense of how well they've understood the chapter content.

• MediaShare. Consisting of a curated collection of videos and customizable, auto- scored assignments, MediaShare helps students understand why they are learn- ing key concepts and how they will apply those in their careers. Instructors can also assign favorite YouTube clips or original content and employ MediaShare's powerful repository of tools to maximize student accountabi lity and interac- tive learning, and provide contextualized feedback for students and teams who upload presentations, media, or business plans.

• NEW Mini-Simulations. New Mini-Simulations walk students through key business decision-making scenarios to help them understand how manage- ment decisions are made. Students are asked to make important decisions relating to core business concepts. Al each point in the simulation, students receive feedback to help them understand the implications of their choices in the management environment. These simulations can now be assigned by instructors and graded directly through MyLab Management.

• Learning Catalytics. learning Calalytics is a "bring your own device• student engagement, assessment, and classroom intelligence system. IL allows instruc- tors to engage s tudents in class with a variety of question types designed lo gauge student understanding.

• Assignable l111ini-Cases and Video Cases. Instructors have access to a variety of case-based assessment material that can be assigned to students, with multiple-choice quizzes or wrillen-response format in MyLab Management's Writing Space.

• Lesson Presentations. Students can study key chapter topics and work through in teractive assessments to test their knowledge and mastery of concepts. Each presentation allows students to explore through expertly designed s teps of read ing, practising, and testing lo ensure that s tuden ts not only experience the

content but also truly engage with each topic. Instructors also have the abil ity to assign quizzes, projects, and follow-up discussion questions relating lo the online lessons to further develop the valuable learning experiences from the presentations.

• Dynamic Study Modules. These study modules allow s tudents to work through groups of questions and check their understanding of foundational manage- ment topics. As students work through questions, the Dynamic Study Modules assess their knowledge and only show questions that s till require practice. Dynamic Study Modules can be completed online using a computer, tab let, or mobile device.

• Pearson eText: My Lab Management also includes an eText version of Organi- zational Behaviour, including a complete Glossary and Index. This dynamic, online version of the lexl is integrated throughout MyLab Management to cre- ate an enriched, interactive learning experience for students. Users can create notes, highl ight text in different colours, create bookmarks, zoom, and cl ick hyperl inked words and phrases to view defin itions and go directly lo web- links. The Pearson eText allows quick navigation to key parts of the eText using a tab le of contents and provides full-text search.

Most of the following materials are available for download from a password-protected section of Pearson Canada's onl ine catalogue (hllp://www.pearsoncanada.ca/ highered). Navigate lo your text's catalogue page to view a list of those supplements that are avail- able. Contact your local sales representative for details and access.

• Instructor's Resource Manual. Each chapter of the Inslructor's Resource Manual includes a chapter outl ine, learning outcomes, chapter synopsis, study ques- tions, suggested teaching plan, annotated lecture outl ines, answers toques- tions found under OB at Work's For Review, a summary and analysis of Point/ Counterpoint features, comments on end-of-chapter exercises, notes on lhe Case Incidents and From Concepts to Skills, and key terms.

• Computerized Test Bank. The Test Bank contains over 1800 items, including multiple-choice, true/ false, and discussion questions that relate not only to the body of the text bul to From Concepts to Shills, Point/Counterpoint, and case materials. For each question, we have provided the correct answer, a refer- ence to the relevant section of the text, a difficu lty rating, and a classification (recall/ appl ied). Pearson's computerized test banks allo\v instructors to filter and select questions lo create quizzes, tests, or homework. Instructors can revise questions or add their own, and may be able to choose print or online options. These questions are also available in Microsoft Word formal.

• PowerPoint Presentation. A ready-lo-use PowerPoint slideshow designed for classroom presentation. Use it as is, or edit content to fit your individual class- room needs.

• Image Gallery. This package provides instructors with images lo enhance their teaching.

Learning Solutions Managers. Pearson's Learning Solutions Managers work with faculty and campus course designers lo ensure that Pearson technology products, assessment tools, and online course materials are tailored to meet your specific needs. This highly qualified team is dedicated to helping schools take full advantage of a wide range of educational resources, by assisting in the integration of a variety of instructional materi- als and media formats. Your local Pearson Education sales representative can provide you with more details on th is service program.

Preface xxvii

xxvii i Preface

Acknowledgments A number of people worked hard lo give this eighth Canadian edition of Organizational Behaviour a new look.

I received incredible support for this project from a variety of people at Pearson Canada. The three people who worked hardest to keep this project on track were Jennifer Murray, Content Developer, Claudia Forgas, Production Editor, and Jess ica Mifsud, Project Manager. All three were extremely supportive and helpful. Jennifer sup- plied a number of great ideas for examples and vigneues, never complained when I was late with chapters, and she provided much needed cheerfulness at some of the most difficult parts of th is project. I can't thank her enough for her dedication lo the task.

Claudia Forgas was the Production Editor for the project. Claudia has worked on a number of my projects and still continues lo amaze for how well she makes sure everything is in place and written clearly. Claudia provided a wealth of support, great ideas, and goodwill throughout the production process. Turning the manuscript into the text you hold in your hands could not have happened without her inspired leader- ship. She was extremely diligent about checking for consistency throughout the text and performed a number of helpful fact-checking activities. Her keen eyes helped lo make these pages as clean as they are. I am grateful for the opportunity lo work with her again.

There are a variety of other people al Pearson who also had a hand in making sure that the manuscript would be transformed in to th is book and then delivered to you. To all of them I extend my thanks. I know the Pearson sales team will do everything possible lo make this book successful.

I also wanl to acknowledge my divisional secretary, Nancy Tang, who helps keep me on track in a variety of ways. I could nol ask for a beuer, more dedicated, or more cheerful assistant. She really helps keep things together.

In our continuing effort to improve the text, we have conducted many reviews to elicit feedback over the years and editions. Many thanks to several students from the Northern Alberta Institute ofTechnology (NAIT) who provided us with suggestions for improving the text The students are Barb Kosak, Prudence Musinguzi, Andres Sarrate, and Robert Tucci. Student input helps keep the material fresh and alive.

Finally, I wanl to acknowledge the many reviewers of this text for their detailed, helpful comments. I appreciate the lime and care that they pul into their reviewing. The reviewers include Nancy Breen (Nova Scotia Community College), Sabrina Deutsch Salamon (York University), Harold Ekstein (George Brown College), Leah Hamilton (Mount Royal University), Shari Ann Herrmann (Kwanllen Polytechnic University), Puneet Luthra (Seneca College), Jody Merrill (University of Windsor), John Predyk (Vancouver Island Univers ity), Wayne Rawcliffe (Univers ity of British Columbia), Sandra Steen (University of Regina), and SujayVardhmane (George Brown College).

ABOUT THE AUTHORS

Nancy Langton received her Ph.D. from Stanford University. Since completing her graduate studies, Dr. Langton has taught at the University of Oklahoma and the University of British Columbia. Currently a member of the Organizational Behaviour and Human Resources d ivision in the Sauder School of Business, UBC, she teaches at the undergraduate, MBA, and Ph.D. levels and conducts executive programs on attracting and retaining employees, lime management, fami ly business issues, as well as women and management issues. Dr. Langton has received several major three-year research grants from the Social Sciences and Humanities Research Council of Canada, and her research interests have focused on human resource issues in the workplace, including pay equity, gender equity, and leadership and communication styles. Her articles on these and other top ics have appeared in such journals as Adm.inistrative Science Quarterly, American Sociological Review, Sociological Quarcerly, Journal of Man- agement Education, and Gender, Work and Organizations. She has won Best Paper com- mendations from both the Academy of Management and the Administrative Sciences Association of Canada.

Dr. Langton routinely wins high marks from her students for teaching. She has been nominated many times for the Commerce Undergraduate Society Awards, and has won several honourable mention plaques. She has also won the Sauder School of Business's most prestigious award for teaching innovation, The Talking Stick. The award was given for Dr. Langton's redesign of the undergraduate organizational behaviour course as well as the many activities that were a spin-off of these efforts. She was also part of the UBC MBA Core design team that won the Alan Blizzard award, a national award tha t recognizes innova tion in teaching. More recently, she was acknowledged by the Sauder School of Business for her development of the Sauder Africa Initiative, which took her to Kenya with UBC students to help young people in the slums of Nairobi write busi- ness plans.

In Dr. Langton's •other life: she engages in the artistry of quiltmaking, and one day hopes 10 win first prize at Visions, the juried sho\v for quilts as works of art. More recently, she has been working at mastering the art of photography, creating abstract art using segments of real objects. When she is not designing quills or taking photographs, she is either reading novels recommended by her book club colleagues or studying cookbooks for new ideas. All of her friends would say that she makes the best pizza from scra tch in all of Vancouver, and one has even offered to supply venture capital to open a pizza parlour.

xxx About the Authors

Stephen P. Robbins

Education Ph.D., University of Arizona

Professional Experience Academic Positions: Professor, San Diego Stale University, Southern Ill inois University al Edwardsville, University of Baltimore, Concord ia University in Montrea l, and University of Nebraska at Omaha.

Research: Research in terests have focused on conflict, power, and politics in organi- zations; behavioural decision making; and the development of effective interpersonal ski lls.

Books Published: World's best-selling author of textbooks in both management and organizational behaviour. His books have sold more than 5 mill ion copies and have been translated into 20 languages; editions have been adapted for Canada, Austral ia, South Africa, and India, such as these:

• Essentials of Organizational Behavior, 14th ed. (Pearson, 2017)

• Management, 14th ed. with Mary Coulter (Pearson, 2017)

• Fundamentals of Human Resource Management, 11th ed., with David Decenzo (Wiley, 2012)

• Prentice Hall's Self-Assessment Library 3.4 (Prentice Hall, 2010)

• Fundamentals of Managenient, 9th ed., with David DeCenzo and Mary Coulter (Pearson, 2014)

• Supervision Today! 8th ed., with David Decenzo and Robert Wolter (Pearson, 2014)

• Training in Interpersonal Skills: TIPS for Managing People at Worli, 6th ed., with Phill ip Hunsaker (Prentice Hall, 2012)

• Managing Today! 2nd ed. (Prentice Hall, 2000)

• Organization Theory, 3rd ed. (Prentice Hall, 1990)

• The ThJth About Managing People, 4th ed. (Pearson Ff Press, 2014)

• Decide and Conquer: Make Winning Decisions and Take Control of Your Life (Financial Times/Prentice Hall, 2004)

Other Interests In his •other life,• Dr. Robbins actively participates in masters' track competition. After turning 50 in 1993, he won 18 national championships and 12 world titles. He is the current world record holder at 100 metres (12.37 seconds) and 200 metres (25.20 seconds) for men 65 and over.

Timothy A. Judge

Education Ph.D., University of Illinois al Urbana-Champaign

Professional Experience Academic Positions: Franklin D. Schurz Chair, Department of Management, Mendoza College of Business, University of Notre Dame; Visiting Distinguished Adjunct Profes- sor of King Abdulaziz University, Saudi Arabia; Visiting Professor, Divis ion of Psychol- ogy & Language Sciences, University College London; Matherly-McKethan Eminent Scholar in Management, Warrington College of Business Administration, University of Florida; Stanley M. Howe Professor in Leadership, Henry B. Tippie College of Business, University of Iowa; Associate Professor ( with tenure), Deparunent of Human Resource Studies, School of Industrial and Labor Relations, Cornell University; Lecturer, Charles University, Czech Republic, and Comenius University, Slovakia; Instructor, Indus- trial/Organizational Psychology, Department of Psychology, University of Il linois at Urbana-Champaign.

Research: Dr. Judge's primary research interests are in {l) personality, moods, and emotions; (2) job altitudes; (3) leadership and influence behaviours; and {4) careers (person-organization fit, career success). Dr. Judge has published more than 145 articles on these and other major top ics in journals such as Journal of Organizational Behavior, Person11el Psychology, Academy of Management Journal, Jo11n1al of Applied Psychology, Euro- pean Journal of Personality, and Eu.ropea11 Journal of Work and Organizat.ional Psychology.

Fellowsh ip: Dr. Judge is a fellow of the American Psychological Association, the Academy of Management, the Society for Industrial and Organizational Psychology, and the American Psychological Society.

A,vards: In 1995, Dr. Judge received the Ernest J. McCormick Award for Distinguished Early Career Contributions from the Society for Industrial and Organizational Psychol- ogy. In 2001, he received the Larry L. Cummings Award for mid-career contributions from the Organizational Behavior Division of the Academy of Management. In 2007, he received the Professional Practice Award from the Inslilule of Industria l and Labor Relations, University of Illinois. In 2008, he received the University of Florida Doctoral Mentoring Award. And in 2012, he received the Editorial Board of the European Jounial of Work and Orga11izatio11al Psychology (EJWOP) best paper of the year award.

Other Books Published: H. G. Heneman Il l, T. A. Judge, and J. D. Kammeyer- Mueller, Staffi11g Organizatio11s, 8th ed. (Mishawaka, IN: McGraw-Hill Education, 2014 ).

Other Interests Although he cannot keep up (literally!) with Dr. Robbins' accomplishments on the track, Dr. Judge enjoys golf, cooking and baking, literature (he's a particular fan of Thomas Hardy and is a member of the Thomas Hardy Society), and keeping up with his three children.

About the Aut hors xxxi

What Is Organizational Behaviour?

PA RT 1

UNDERSTAND I NG

THE WORKP LACE

How can people skills help you run a

successful business?

O Demonstrate the importance of interpersonal skills in the workplace. f) Define organizational behaviour (OB). f) Understand the value of systematic study to OB. C, Identify the major behavioural science disciplines that contribute to OB. 0 Demonstrate why few absolutes apply to OB. O Identify workplace challenges that provide opportunities to apply OB concepts. f) Describe the three levels of analysis in this book's OB model.

n 2011 , American retail giant Target

bought the leases REUTERS/llen Nelms of the entire Zellers chain, with the goal to open 124 locations in Canada during 2013.1 There was much excitement among Canadian

consumers who had been to Target in the States, and who wished something like it existed in Canada. Target was very successful in the United States, and apparently thought it could bring that success easily to Canada.

The first stores were set to open in March 2013. Almost from the beginning things did not go well. The shelves were often empty, and the items advertised for sale in weekly flyers were nowhere to be found.

Consumers became frustrated almost from the start. In the rush to get stores opened, new staff did not receive enough training, the software for monitoring stock supplies was not working properly, and the

company had not adequately assessed how quickly the company would be able to adjust to having a Canadian presence.

The challenges that organizations such as Target face illustrate several concepts you will learn about as you study the field of organizational behaviour. Let's take a look, then, at

what organizational behaviour is.

• Does job satisfaction really make a difference?

\ I I ' , : ;, : ,V, , '

TI-IE BIG IDEA

• Why do some people do well in organizational settings while others have difficulty?

• Do you know what a "typical" organization looks like? • What people-related challenges have you noticed in the workplace?

• Why should you care about understanding other people?

• Are you ready to take on more responsibility at work?

OB helps 1nanagers and employees 1nake sense of the ,vorkplace and

also applies to \vork in groups of all kinds.

4 Part 1 Understanding the Workplace

O Demonstrate the impor- tance of interpersonal skills in the workplace.

The Importance of Interpersonal Skills Until the late 1980s, business school curricula emphasized the technical aspects of management, focusing on economics, accounting, finance, and quantitative techniques. Course work in human behaviour and people skills received less attention. Since then, however, business schools have realized the significant role interpersonal skills play in determining a manager's effectiveness. In fact, a survey of over 2100 CFOs across 20 industries indicated that a lack of interpersonal skills is the lop reason why some employees fail to advance.2

Incorporating OB principles into the workplace can yield many important organi- zational outcomes. For one, companies known as good places lo work in 2017- such as Toronto-based Royal Bank of Canada (RBC); SL John, New Brunswick-based Irving Oil; Bedford, Nova Scotia-based Clearwater Seafoods; Winnipeg-based Aboriginal Peoples Television Network; Regina-based SaskTel; Calgary-based Agrium, and Vancouver-based West FraserTimber3- have been found to generate superior financial performance.4 Second, developing managers' interpersonal skills helps organizations attract and keep high-performing employees, which is important since outstanding employees are always in short supply and are costly lo replace. Third, there are s trong associations between the qual ity of workplace rela tionships and employee job satisfac- tion, stress, and turnover. One very large survey of hundreds of workplaces and more than 200 000 respondents showed that social relationships among co-workers and supervisors were strongly related to overall job satisfaction. Positive social relation- ships were also associated with lower stress at work and lower intentions to quit.5

Further research indicates that employees who relate lo their managers with sup- portive dia logue and proactivity find that their ideas are endorsed more often, which improves workplace satisfaction.6 Fourth, increasing the OB element in organizations can foster social respons ibil ity awareness. Accordingly, universities have begun to incorporate social entrepreneurship education into their curriculum in order to train future leaders to address social issues within their organizations. 7 This is especially important because there is a growing need for understanding the means and outcomes of corporate social responsibility, known as CSR.8

Indigo CEO Heather Reisman has the interpersonal skills required to succeed in management. Communi-

cation and leadership skills d istinguish managers such as Reisman, who rise to the top of their profession.

Chapter 1 What Is Organizational Behaviour? 5

We understand that in today's competilive and demand- ing workplace, managers can't succeed on their technical ski lls alone. Succeeding in the workplace also takes good people skills. This book has been written to help managers and employees develop those people skills. To learn more about the kinds of people skills needed in the workplace, see the Experient.ial Exercise on page 29 and From Concepts to Skills-Developing Inrerpersonal Shills on pages 32- 35.

Defining Organizational Behaviour

Does job satisfaction

really 1nake a difference'?

As Target tried to deal with the failure of running its new stores in canada, problems within the organization became increasingly obvious.9 While the Target Canada president was optimistic

throughout, he and his team suffered from groupthink. The CEO, based in Minneapolis, Min-

nesota, did not want to pay rent on empty stores longer than necessary. This put pressure on senior management to keep going, rather than slow down and try to solve very real problems.

"Nobody wanted to be the one person who stopped the Canadian venture," says a former

employee. " It wound up just being a constant elephant in lhe room." Better knowledge of organiza tional behaviour might have helped management adjust

to some of the problems Target was facing in Canada. Let's look at what organizational

behaviour is.

Organizational behaviour ( often abbreviated as OB) is a field of study that looks at the impact that individuals, groups, and structure have on behaviour with in organiza- tions for the purpose of applying such knowledge toward improving an organization's effectiveness. Because the organizations studied are often business organizations, OB is often applied lo topics such as job satisfaction, absenteeism, employment turnover, productivi ty, human performance, and management. OB also examines the following core topics, although debate exists about their relative importance: ID

• Motivation

• Leader behaviour and power

• Interpersonal communication

• Group structure and processes

• Altitude development and perception

• Change processes

• Conflict and negotiation

• Work design

Much of OB is relevant beyond the workplace. The study of OB can cast light on the interactions among fam - ily members, students working as a team on a class project, the voluntary group that comes together to do something about reviving the downtown area, the parents who sit on the board of their children's daycare centre, or even the members of a lunchtime pickup basketball team.

What Do We Mean by Organization?

\>Vhy do sorne people do ,Yell

in organiza- tional settings

~vhile others have di · culty'?

An organization is a consciously coordinated social unit, composed of a group of people, that functions on a relatively continuous basis to achieve a common goal or set of goals. Manufacturing and service firms are organizations, and so are schools,

f) Define organizational behaviour (OB).

organizational behaviour A field of study lhat investigates lhe impact of indi\/iduals, groups, and structure on behaviour within 0<ganizations; ijs purpose is to apply such knowledge toward improving an organization's effectiveness.

organization A consciously coor- dinated social unij, composed of a group of people, that functions on a relatively continuous basis to achieve a common goal Of set of goals.

6 Part 1 Understanding the Workplace

f) Understand the value of systematic study to OB.

hospi tals, churches, mi litaiy units, retai l stores, pol ice departments, volunteer organiza- tions, start-ups, and local, provincial, and federal government agencies. Thus, when we use the term organization in this book, we are referring no t only to large manufacturing firms but also to small mom-and-pop stores, as well as to the variety of other forms of organization that exis t. Small businesses with less than 100 people made up 98 percent of the employers in Canada in 2015, and they employed 70 percent of the private sector workforce. Only 0.3 percent of businesses have more than 500 employees, and they employ just under 10 percent of the workforce. Most of these large organizations are in the public sector. 11

The examples in this book present various organizations so that you can gain a better understanding of the many types of organizations that exist. The college or university you attend is every bit as much a •real" organization as is Lululemon Athletica, Air Canada, or the Vancouver Canucks. A small for-profit organization that hires unskilled workers to renovate and build in the inner city of Winnipeg is as much a real organization as is London, Ontario-based Ell isDon, one of North America's largest construction companies. Therefore, the theories we cover should be considered in light of the variety of organizations you may encounter. We try to point out instances where the theoiy may be less applicable ( or especially applicable) to a par- ticular type of organization. For the most part, however, you should expect that the discussions in this book apply across the broad spectrum of organizations. Throughout, we highlight applications to a variety of organizations in our fea ture OB in the Workplace.

OB Is for Everyone

Do you kno"'' \,vhat a "typical~

organization looks like·?

It might seem natura l to think that the study of OB is for leaders and managers of organizations. However, many organizations also have informal leadership opportu- nities. In organizations in which employees are asked to share in a greater number of decision-making processes rather than simply follow orders, the roles of managers and employees are becoming blurred. 12 For instance, employees in some retail operations are asked to make decisions about when to accept returned items rather than defer the decision to the manager.

OB is not just for managers and employees. Entrepreneurs and self-employed individuals may not act as managers, but they certainly interact wi th o ther individu- als and organizations as part of their work. OB applies equally well to all situations in which you interact with others: on the basketball court, at the grocery store, in school, or in church. In fact, OB is relevant anywhere that people come together and share experiences, work on goals, or meet to solve problems. To help you understand these broader connections, you will find a feature called OB in the Street throughout the book.

Complementing Intuition with Systematic Study Whether you have explicitly thought about it before or not, you have been "reading" people almost all your life by watching their actions and interpreting what you see, or by tiying to predict what people might do under different conditions. The casual approach to reading others can often lead to erroneous predictions, but using a system- atic approach can improve your accuracy.

Underlying the systematic approach in this text is the belief that behaviour is no t random. Rather, we can identify fundamental consistencies underlying the behaviour of all individuals and modify them to reflect individual differences.

Chapter 1 What Is Organizational Behaviour? 7

These fundamental consistencies are very important. Why? Because they allow predictability. Behaviour is generally predictable, and the systematic study of behav- iour is a means lo making reasonably accurate predictions. When we use the term systematic study, we mean looking at relationships, attempting to allribute causes and effects, and basing our conclusions on scientific evidence- that is, on data gathered under controlled conditions and measured and interpreted in a rigorous manner.

Evidence-based management (EBM) complements systematic study by basing managerial decisions on the best available scientific evidence. For example, we want doctors Lo make decisions about patient care based on the latest available evidence, and EBM argues tha t managers should do the same, thinking more scientifically about management problems. A manager might pose a question, search for the best avai lable evidence, and apply the relevant information to the question or case at hand. You might wonder what manager would not base decisions on evidence, but the vast majority of management decisions are made "on the fly,• with little lo no systematic study of available evidence. J3

Systematic study and EBM add to intuition, or those "gut feelings• about what makes others (and ourselves) "tick." Of course, the things you have come lo believe in an unsystematic way are nol necessarily incorrect. Jack Welch (former CEO of General Elecuic) noted, "The trick, of course, is to know when to go with your gut• Bul if we make all decisions wi th intuition or gut instinct, we are likely working with incomplete information- like making an investment decision with only half the data about the potential for risk and reward.

Relying on intuition is made worse because we tend to overestimate the accuracy of what we think we know. Surveys of human resource managers have also shown that many managers hold "common-sense• opinions regarding effective management that have been flatly refuted by empirical evidence.

We find a similar problem in chasing the business and popular media for manage- ment wisdom. The business press tends to be dominated by fads. As a writer for The New Yorker pul it, "Every few years, new companies succeed, and they are scrutinized for the underlying truths they might reveal. But often there is no underlying lrulh; the companies just happened lo be in the right place at the right time."14 Although we try to avoid it, we might also fall into th is trap. It's not that the business press stories are all wrong; it's that without a systematic approach, it's hard lo separate the whea t from the chaff.

Big Data It's difficult lo believe now, but not long ago companies treated online shopping as a virtual point-of-sale experience: Shoppers browsed websites anonymously, and sellers tracked sales data only on what customers bought. "Big data"- the extensive use of statistical compilation and analysis- didn't become possible until computers were sophisticated enough lo both store and manipulate large amounts of information. Gradually, as a result, online retailers began Lo track and act upon information about customer preferences that was uniquely available through the Internet shopping expe- rience, information that was far superior to data gathered in simple in-store transac- tions. This enabled them to create more targeted marketing strategies than ever before. See the Case Incident- Big Data for Dummies on pages 31-32 to learn more about how organizations use big data.

The booksell ing industry is a case in point: Before online selling, brick-and- mortar bookstores could collect data about book sales only to create projections about consumer interests and trends. With the advent of Amazon, suddenly a vast array of information about consumer preferences became avai lable for tracking: what customers bought, what they looked at, how they navigated the site, and what

systematic study Looking at relatiooships, attempting to attribute causes and effects, and aawing ooo- clusioos based on scientific evidence.

evidence-based management (EBM) The basing of managerial decisions on the best available scientific evidence.

intuition An instinctive feeling not necessarily supported by research.

8 Part 1 Understanding the Workplace

lhey were influenced by (such as promotions, reviews, and page presenlation). The challenge for Amazon lhen was lo identify which slalistics were persistent, giving re lalively conslanl outcomes over lime, and predictive, showing sleady causality belween certain inputs and oulcomes. The company used these slatistics lo develop algorilhms lo forecast which books cuslomers would like lo read next Amazon then could base ils wholesale purchase decisions on the feedback customers provided, bolh through these passive collection melhods and through sol icited recommenda- tions for upcoming Lilies.

Big data has been used by technology companies like Google and Facebook, who rely on adverlising dollars for revenue and thus need to predict user behaviour. Compa- nies like Nelflix and Uber similarly use big data lo predict where and when customers may want to use their virtual services, although their revenue comes from subscribers to lheir services. Insurance firms predict behaviour to assess risks, such as the chance of lraffic accidents, in order lo set customer premiums.

Online reta ilers like eBay and Amazon, which market tangible products through online platforms, also re ly on big data to predie1 what will sell. For organiza tions like Nielsen Holdings, which lracks television and radio watching, the results of data analyses are the product they sel l. Still other organizations collect big da ta but do not directly use it. These are often organizations whose primary business is not online. Think of the loyalty cards you carry around (Starbucks, Tim Hortons, Indigo-Chapters). These companies sell their data to vendors who stock shelves, and they use the data to identify lrends and new market possibilities.15 Sometimes even technology companies s imply sell their data; Twitter sells 500 mill ion tweets a day to four data assimilation companies. 16

It is good news for the future of business that researchers, the media, and company leaders have identified the potential of da ta-driven management and decision making. A manager who uses data to define objectives, develop lheories of causality, and lest those theories can determine which employee activities are relevant to the objectives.17

Big data has implications for correcting management assumplions and increasing posi- live performance outcomes. Increasingly, it is applied toward making effective decisions (Chapter 12) and managing human resources. It is quite possible that the best use of big da ta in managing people will come from organizational behaviour and psychol- ogy research, where it might even help employees with mental illnesses monitor and change their behaviour. 18

We must keep in mind that big data will always be limited in predicting behaviour, curLail ing risk, and preventing cataslrophes. In contrasl to the replicable results we can obtain in lhe sciences through big data analytics, human behaviour is often capricious and predicated on innumerable variables. O therwise, our decision making would have been taken over by artificial intelligence by now! But that will never be a worthy goal. 19

Management is more than the sum of data. We are not advising that you throw your intui Lion, or all the business press, out the

window. Nor are we arguing that research is always right. Researchers make mistakes, too. What we are advising is lo use evidence as much as possible lo inform your intu- ition and experience. That is the promise of OB.

Throughout this book, the Focus 011 Research feature will highlight some of the care- fu l studies that form the bui lding blocks of OB.

If understanding behaviour were simply common sense, we would not observe many of the problems that occur in lhe workplace, because managers and employees would know how to behave. Unfortunately, as you will see from examples lhroughout this book, many employees and managers exhibit less-than-desirab le behaviour in lhe workplace. With a slronger grounding in OB, you might be able to avoid some of these mistakes.

OB is even being adopted by other discipl ines, as OB in the Street shows.

Chapter 1 What Is Organizational Behaviour? 9

•

OB IN THE STREET Is OB Just for the Workplace?

Can finance learn anything from OB? It may surprise you to learn that, increasingly, other business discipl ines are employing OB concepts.20 Marketing has the closest overlap with OB. Trying to predict consumer behaviour is not tha t different from trying lo predict employee behaviour. Both require an understanding of the dynamics and underlying causes of human behaviour, and there is a lot of correspondence between the disciplines.

What is perhaps more surprising is the degree to which the so-called hard discipl ines are using soft OB concepts. Behavioural finance, behavioural accounting, and behav- ioural economics (also called economic psychology) all have grown in importance and interest in the past several years.

On reflection, the use of OB by these disciplines should not be so surprising. Your common sense will tell you that humans are not perfectly rational creatures, and in many cases, our actions don't conform to a rational model of behaviour. Although some elements of irrationality are incorporated into finance, accounting, and economics, researchers find it increasingly useful to draw from OB concepts.

For example, investors have a tendency to place more weight on private information (information that only they, or a limited group of people, know) than on publ ic informa- tion, even when there is reason to bel ieve that the public information is more accura te. To understand th is phenomenon, finance researchers use OB concepts. In addition, behav- ioural accounting research might study how feedback influences auditors' behaviour, or the functional and dysfunctional impl ications of earnings warnings on investor behaviour.

The point is that while you take separate courses in various business disciplines, the lines between them are increasingly being blurred as researchers draw from common disciplines to explain behaviour. We think that th is is a good th ing because il more

, accurately matches the way managers actually work, th ink, and behave . ............ .

Disciplines That Contribute to the OB Field One of the major problems Target canada had was making sure that items were on the shelves, available for customers to purchase.21 Products often went out of stock because of issues with the

company's new inventory management software. However, the problem turned out to be more than

just a software issue. Business analysts responsible for making sure that stock was available were judged on

lhe percentage of their products that were in stock at any given time. If their percentage of

in-stock number was low, they would receive a call from a vice-president who would demand an explanation. Some analysts discovered that they could turn off a software feature that notified

distribution centres to ship more product. By disabling this feature, the vice-presidents would

not know stock was low, which meant the analysts would not be criticized. However, once lhis feature was fully activated, and analysts could no longer turn it off on their own, the company

could finally see the low in-stock percentages. The analysts may have been acting rationally by covering up the shortages so that they

would not get into trouble with their managers, but this was short-term thinking because it was

ultimately harmful to the stores. What might Target Canada have learned from OB to do a better job of managing communications and incentives for lhe analysts'

The Building Blocks of OB OB is an applied behavioural science that builds upon contributions from a num- ber of behavioural disciplines: mainly psychology, social psychology, sociology, and

C, Identify the major behavioural science disciplines that contrib· ute to OB.

1 O Part 1 Understanding the Workplace

anthropology. Psychology's contributions have been primarily at the individual, or micro, level of analysis, whi le the other three disciplines have contributed to our under- standing of macro concepts, such as group processes and organization. Exhibit 1-1 pres- ents an overview of the major contributions of behavioural science to the study of OB.

Psychology Psychology seeks to measure, explain, and sometimes change the behaviour of humans and other animals. Contributors to the knowledge of OB are learning theorists, per- sonality theorists, counselling psychologists, and, most important, industrial and organizational psychologists.

Early industrial and organizational psychologists studied the problems of fatigue, boredom, and other working condi tions that could impede efficient work performance. More recently, their contributions have been expanded to include learning, perception, personal ity, emotions, training, leadership effectiveness, needs and motivational forces, job satisfaction, individual decision making, performance appra isal, attitude measure- ment, employee selection techniques, work design, and work stress.

Social Psychology Social psychology, generally considered a branch of psychology, blends concepts from both psychology and sociology to focus on people's influence on one another. One

EXHIBIT 1-1 Toward an OB Discipline

Behavioural science

Psychology

Contribution

Learning Motivation Personality Emotions Perception Training

- ~ ; Leadership effectiveness Job satisfaction Individual decision making Performance appraisal Attitude measurement Employee selection Work design Work stress

Social psy<:hology j~ Behavioural change Attitude change Communication

I _

Sociology

Anthropology

Group processes Group decision making

Communication Power Conflict Intergroup behaviour

formal organization theory Organizational technology Organizational change Organizational culture

Comparative values Comparative attitudes Cross-cultural analysis

Organizational culture Organizational environment Power

Unit of analysis

Individual

-•. -- Group

Output

I ~ Study of

J ~ organizational

behaviour

Organization system

Chapter 1 What Is Organizational Behaviour? 11

major s tudy area is change- how to implement it and how to reduce barriers to its acceptance. Social psychologists also contribute to measuring, understanding, and changing attitudes; identifying communication patlerns; and building trust. Finally, they have made important contributions to our study of communication, intergroup behaviour, power, and conflict.

Sociology While psychology focuses on the individual, sociology s tudies people in relation to their social environment or culture. Sociologists have contributed to OB through their study of group behaviour in organizations, particularly formal and complex organizations. Perhaps most important, sociologists have studied organizational culture and change, formal organizational theory and structure, organizational technology, communication, power, and conflict.

Anthropology Anthropology is the study of societies to learn about human beings and their activi- ties. Anthropologists' work on cultures and environments has helped us understand differences in fundamen tal values, attitudes, and behaviour among people in different countries and within different organizations. Much of our current understanding of organizational culture, organizational climate, and differences among national cultures is the resu lt of the work of anthropologists or those using their methodologies.

The Rigour of OB Whether you want to respond to the challenges of the Canadian workplace, man- age well, or guarantee satisfying and rewarding employment for yourself, it pays to understand organizational behaviour. OB provides a systematic approach to the study of behaviour in organizations. Underlying this systematic approach is the bel ief that behaviour is not random. It stems from and is directed toward some end that the indi- vidual believes, rightly or wrongly, is in his or her best interest.

OB Has Few Absolutes Laws in the physical sciences- chemistry, astronomy, physics- are consistent and apply in a wide range of situations. They allow scientists to generalize abou t the pull of grav- ity or to confidently send astronauts into space to repair satell ites. Human beings are complex, and few, if any, s imple and universal principles explain organizational behav- iour. Because we are not all alike, our ab ility to make simple, accura te, and sweeping generalizations about ourselves is limited. Two people often act very differently in the same situation, and the same person's behaviour changes in different s ituations. For example, not everyone is motivated by money, and people may behave differently at a religious service than they do at a party.

OB Takes a Contingency Approach Just because people can behave differently at different times does not mean, of course, that we cannot offer reasonably accurate explanations of human behaviour or make valid predictions. It does mean, however, that OB must consider behaviour within the context in which it occurs- a strategy known as a contingency approach. In other words, OB's answers depend upon the situation. For example, OB scholars would avoid stating that everyone likes complex and challenging work (the general concept). Why7 Because not everyone wants a challenging job. Some people prefer routine over varied work, or simple over complex tasks. A job that is appeal ing to one person may not appeal to another, so the appeal of the job is contingent on the person who holds it. Often, we'll find both general effects ( money does have some abil ity to motivate most of us) and contingencies

O Demonstrate why few absolutes apply to OB.

contingency approach An approach laken by OB thal considers behaviour within lhe conlext in which it occurs.

12 Part 1 Understanding the Workplace

0 Identify workplace challenges that provide opportunities to apply OB concepts.

( some of us are more motivated by money than others, and some situations are more about money than others). We will best understand OB when we realize how both (gen- eral effects, and the contingencies that affect them) often guide behaviour.

Consistent with the contingency approach, Point/ Counterpoint debates are pro- vided in each chapter. These debates are included to highligh t the fact that within OB there are disagreements. Through the Point/ Counterpoint format, you will gain the opportunity to explore different points of view, d iscover how diverse perspec- tives complement and oppose each other, and gain insight into some of the debates currently taking place within the OB field. Point/ Counterpoint on page 28 debates the quality of evidence offered by popular books and academic research studies on organizational behaviour.

Challenges and Opportunities in the Canadian Workplace

In the United States, Target prides itself on its corporate cu lture of being a "fast, fun, and

friendly" place to work.22 Target hires people it thinks will fit well into the environment, and the

company worries less about new employees having experience. "Target's motto was they could

train you for the job, but they couldn't train culture," says a former employee. New employees

in the United States go through an extensive development program, and are assigned a mentor.

When Target canada had to hire quickly to staff more than 120 stores within one year, former

employees say that the company did succeed in hiring people with the right personalities. How-

ever, there was no time to train them. Most received a few weeks of training at best. According

to one employee, "Everyone was stretched thin . We didn't have the manpower to get everything

done in the time frame that was laid out."

Target was not ready to move to canada, and the results were costly. Within two years of

opening its first store, the company announced bankruptcy for the Canadian operation, and

shuttered all of its stores.

Understanding OB has never been more important for managers. Take a quick look at the dramatic changes in organizations. The typica l employee is getting older; the work- force is becoming increasingly diverse; and global competition requires employees to become more flexible and cope with rapid change.

As a resu lt of these changes and others, employment options have emerged. Exhibit 1-2 details some of the options individuals may find offered to them by orga- nizations or for which they would like to negotiate. Under each heading in the exhibit, you will find a grouping of options from which to choose- or combine. For instance, at one point in your career you may find yourself employed full time in an office in a local ized, non-union setting with a salary and bonus compensation package, whi le at another point you may wish to negotiate for a flextime, virtual posi- tion and choose to work from overseas for a combination of salary and extra paid time off.

In short, today's challenges bring opportunities for managers to use OB concepts. In th is section, \Ve review some of the most critical issues confronting managers for which OB offers solutions- or at least meaningful insights toward solutions.

Economic Pressures

What people- related cha!-

lenges have you noticed in the

workplace'?

When the US economy plunged into a deep and prolonged recession in 2008, virtually all other large economies around the world followed sui t. Canada fared much better

Chapter 1 What Is Organizational Behaviour? 13

EXHIBIT 1-2 Employment Options

, Categories of Employment

Employed

Underemployed/ underutilized

Re-employed

unemployed~obless

Entrepreneur

Retired

Job seeking

Furloughed

Laid off

Types of Employment

Full-time

Part-time

Flextime

Job share

Contingent

Independent contractor

Temporary

Reduced hours

Intern

Places of Employment

Anchored (office/cubicle)

Floating (shared space)

Virtual

Flexible

Work from home

Conditions of Employment

Local

Expatriate

Short-term assignee

Flexpatriate

International business traveller

Visa employee

Union/non-union employee

r Compensation "' for Employment

Salary

Hourly

Overtime

Bonus

Contract

Time off

Benefits

- '- ,)

Sources: J. R. Anderson, "Action ttems: 42 Trends Affecting Benefits, Compensation, Training, Staffing and Technology," HR Magazjne, January 2013, p . 33; M. Dewhurst, B. Hanoock, and D. Ellsworth, "Redesigning Knowledge Work," Harvard Business Review, January-February 2013, pp. 58-64; E. Frauenheim, "Creating a New Contingent Culture," Worl<force Management, August 2012, pp. 34-39; N. Koeppen, "State Job Aid Takes Pressure off Germany," Wall Street Journal, February 1, 2013, p. AB; and M. A. Shaffer, M. L. Krairner, Y. -P. Chen, and M. C. Bolino, "Choices, Challenges, and Career Consequences of Global Work Experiences: A Review and Future Agenda,• Journal of Management, July 2012, pp. 1282-1327.

than the United Stales, but still faced widespread layoffa and job losses, and those who suivived the axe were often asked to accept pay cuts. When limes are bad, as they were during the recession, managers are on the front lines with employees who are asked to make do with less, and who worry abou t their futures, and who sometimes musl be fired. The difference between good and bad management can be the difference between profi t and loss or, ultimately, between business suivival and failure.

Managing employees well when limes are tough is just as hard as when limes are good- if not harder. In good limes, understanding how lo reward, satisfy, and retain employees is at a premium. In bad times, issues such as stress, decision making, and coping come to the forefro nt.

Continuing Globalization Organizations are no longer constrained by national borders. Samsung, the largest South Korean business conglomerate, sells most of its products to organizations in other coun- tries. Burger King is owned by a Brazilian firm. McDonald 's sells hamburgers in more than 118 countries on six continents. All major automobile makers now manufacture cars outside their borders; Honda builds cars in Al liston, Ontario, Ford in Brazil, Volkswagen in Mexico, and both Mercedes and BMW in South Africa. Apple has also moved almost all of its manufacturing overseas, as discussed in Case Incident- Apple Goes Global on page 31.

In recent years, businesses in Canada have faced tough competition from those in the United Stales, Europe, Japan, and China, as well as from other businesses with in our borders. To suivive, they have had to reduce costs, increase productivity, and improve quality. A number of Canadian companies have found it necessary to merge in order to suivive. For instance, Rona, the Boucheiville, Quebec-based home improvement store, bought oul Lansing, Revy, and Revelstoke in recent years lo defend its turf against the

14 Part 1 Understanding the Workplace

Atlanta, Georgia-based Home Depot Then as a counteroffensive, Lowe's bought out Rona in 2016, hoping to take market share from Home Depot. 23

Some employers have outsourced jobs to other countries where Jabour costs are lower lo remain profitable. For instance, Toronto-based Dell Canada's technical seivice lines are handled by technicians working in India. Toronto-based Wall & Associates, a full-seivice chartered accounting and management consulting firm, ouL~ources document management lo Uganda. Employees in Uganda are willing lo work for $1 an hour lo sort and record receipts. While these wages might seem low, on average, Ugandans make only $1 a day.

lwenty or 30 years ago, national borders protected most firms from foreign competi- tive pressures. This is no longer the case. Trading blocs such as the North American Free Trade Agreement (NAFTA) and the European Union (EU) have significantly reduced tariffs and barriers to trade, and North America and Europe no longer have a monopoly on highly skilled labour. The Internet has also enabled companies lo become more globally connected by opening up international sales and by increasing the opportuni- ties to carry on business across borders. Even small firms can bid on projects in d ifferent countries and compete with larger firms via the Internet

Even in your own country, you will find yourself working with bosses, peers, and other employees born and ra ised in different cultures. As multinational corpora tions develop operations worldwide, as companies develop joint ventures with foreign part- ners, and as employees increasingly pursue job opportunities across national borders, managers and employees must become capable of working with people from different cul lures. To be successful, managers and employees need to know the cultural practices of the workforce in each country where they do business. The ever-changing global competitive environment means that not only individuals but also organizations have lo become increasingly flexible by learning new skills, new ways of thinking, and new ways of doing business.

Understanding Workforce Diversity An important challenge for organizations is worliforce diver.sity, a concept that recognizes the heterogeneous nature of employees in the workplace. Whereas globalization focuses

Montreal-based Bombardier, a leading aerospace and transportation company in the wortd, takes global- ization seriously as part of its strategy. It helped build a bullet train for Italy, using Japanese technology,

and has designed award-winning trams for a number of European cities.

Chapter 1 What Is Organizational Behaviour? 15

on differences among people from different countries, workforce diversity addresses differences among people within given countries. Workforce diversity acknowledges that the workforce consists of women and men; many racial and e thnic groups; indi- viduals with a variety of physical or psychological ab ilities; and people who differ in age, sexual orientation, and demographic characteristics. We discuss workforce diversi ty in Chapter 3.

O ne workforce diversity challenge in Canadian work- places is the mix of generations- members of the Baby Boom, Generation X, and Millennials- who work side by side. Due to their very different life experiences, they bring different values and different expectations to the workplace.

We used to assume that people in organizations who differed from the stereotypical employee would somehow simply fit in. We now recognize that employees don't set aside their cultural values and lifestyle preferences when

v\lhy should you care about understanding other people'?

they go to work. The challenge for organizations, therefore, is to accommodate diverse groups of people by addressing their differen t lifestyles, family needs, and work styles.24

The Focus on Diversity feature found throughout this book highlights diversity mat- ters that arise in organizations. O ur first example looks al Regina-based SaskTel, which values having a diverse workforce.

Does workforce diversity make business sense? Regina-based SaskTel was named one

of Canada's Best Diversity Employers in 2014 because of its commitment to diversity.25

It has d iversity programs for women, people with d isabilities, visible minorities, and Indig-

enous people. While the company received this award for a number of reasons, its work

with Indigenous people is particularly outstanding. Indigenous people are well represented in the SaskTel workplace: 10 percent of its employees and 8.1 percent of its managers

are Indigenous. Indigenous people currently represent 15 percent of the Saskatchewan

population, and that number is expected to grow to 21 to 24 percent in 20 years. The number of Indigenous employees at SaskTel speaks to the effectiveness of the

company's Indigenous recruitment strategy, which was intended to increase the number of

Indigenous employees and address SaskTel's chronic labour shortages in information and communications technologies. SaskTel partners with First Nations bands, tribal councils,

and Indigenous employment agencies.

Sask Tel also keeps a database of Indigenous-owned and -operated businesses, which it consults when it is looking for new suppliers and partners.

SaskTel is not just a good employer. It also tries to be a good community member. Several years ago it started an initiative to bring Internet and wireless coverage to the

28 First Nations communities in Saskatchewan. "We have always believed in the impor-

tance of all Saskatchewan people benefitting from having access to the most powerful and extensive communications network available," said Don McMorris, MPP and cabinet

minister responsible for Sask Tel. "With increased access to technology, residents of these

communities will be able to take advantage of numerous educational and business oppor- tunities that were not available to them before.•

SaskTel strives to have a workforce that is as d iverse as its customers - a goal the

company finds makes good sense not only for the community but also for its own

future. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

I workforce diversity The mix of people in organizations in terms of gender, race, elhnicity, ability, sexual orientation, age. and demographic characteristics such as education and socio-economic stalUs.

16 Part 1 Understanding the Workplace

A Whole Foods Market customer learns how to grind flour with the help of the store's cooking coach, whose job is to provide information about cooking ingredients, methods, and techniques. Cooking

coaches embody the best of the retailer's customer-responsive cutture of serving people with competency, efficiency, knowledge, and flair.

Customer Service Today, the majority of employees in developed countries work in service jobs, including 78 percent in Canada.26 Service employees include technical support representa tives, fast-food counter workers, sales clerks, nurses, automobi le repair technicians, consul- tan ts, financial planners, and flight attendants. The shared characteristic of their jobs is substantial interaction with an organization's customers. OB can increase the suc- cess of these interactions by showing how employee a ttitudes and behaviour influence customer satisfaction.

Many an organization has failed because its employees failed to please customers. Management needs lo create a customer-responsive culture. OB can provide consider- able guidance in helping managers create cul lures that establish rapport \vith customers, put customers at ease, show genuine interest, and are sensitive to a customer's individual s ituation.27

People Skills Throughout the chapters of this text, we will present relevant concepts and theories that can help you explain and predict the behaviour of people al work. You will also gain insights into specific people skills that you can use on the job. For instance, you wi ll learn how to design motivating jobs, improve your listening skills, and create more effective teams.

Networked Organizations Networked organizations allow people to communicate and work together even though they may be thousands of kilometres apart. Independent contractors can telecommute via computer and change employers as the demand for their services changes. Software programmers, graphic designers, systems analysts, technical writers, photo researchers, book and media editors, and medical transcribers are just a few examples of people who can work from home or o ther nonoffice locations.

Chapter 1 What Is Organizational Behaviour? 17

The manager's job is different in a networked organization. Motivating and leading people and making collaborative decisions online require different techniques than when individuals are physically present in a single location. As more employees do their jobs by linking to others through networks, managers and employees must develop new skills. OB can provide valuable insights to help with improving those skills.

Social Media As we will discuss in Chapter 7, social media in the business world is here to stay. Despite its pervasiveness, many organizations continue to struggle with employees' use of social media in the workplace, which presents both a challenge and an opportunity for OB. Employees have been fired for tweeting unflanering comments about their employer. How much should HR look into a candidate's social media presence? Should a hiring manager read the candida te's 'Jwitter feeds, or just do a quick perusal of her Facebook profile? We will discuss this issue later in the text.

Once employees are on the job, many organizations have policies abou t accessing social media at work- when, where, and for what purposes. But what about the impact of social media on employee well-being? One recent study found that subjects who woke up in a positive mood and then accessed Facebook frequently found their mood decreased during the day. Moreover, subjects who checked Facebook frequently over a two-week period reported a decreased level of satisfaction with their lives.28 These are issues that organizations have to deal with.

Enhancing Employee Well-Being at Work Employees are increasingly frustrated as the definition of the workplace has expanded to include anywhere a laptop or smartphone can go. However, even if employees work flexible hours at home or from half a continent away, managers need to consider their well -being at work.

One of the biggest challenges lo maintaining employee well-being is the new reality that many workers never get away from the virtual workplace. Communication tech- nology allows employees to do their work al home, in their cars, or on the ski slopes at Whistler- but it also means many feel like they are never really part of a team. It is hard for employees to get a sense of belonging if they are working alone. Another challenge is that organizations are asking employees to be available in off-work hours via cellphones and email. According to one study, one in four employees shows signs of burnout, and two in three report high stress levels and fatigue.29 These find ings may actually underestimate how common employee burnout is because many employees maintain "always on" access for their managers through email and texting. Finally, employee well-being is challenged by heavy outside commitments. Employees who are single parents or have dependent parents have even more significant challenges in balancing work and fam ily responsibil ities, for instance.

As a resu lt of their increased responsibilities in and out of the workplace, employ- ees want jobs that give them flexibi lity in their work schedules so they can beuer manage work-life confl icts.30 In fact, 56 percent of men and women in a recent study reported that work-l ife balance was their defin ition of career success- more than money, recognition, and autonomy.3 1 Most college and university students say tha t attain ing a balance between personal life and work is a primary career goal; they want "a life• as well as a job. Organizations that don't help their people achieve work- life balance will find it increasingly difficu lt to attract and retain the most capable and motivated employees. As you will see in later chapters, the field of OB offers a number of suggestions for designing workplaces and jobs that can help employees deal with work- life confl icts. OB in the Workplace looks at how Habaflero helps its employees manage work-life balance.

18 Part 1 Understanding the Workplace

positive organizational scholarship An area of OB research 1hat concerns how organiza- tions develop human strengths, foster vitali1y and resilience, and unlock potential.

Habafiero's Employees Help Set Policies

What do empowered employees do? Steven Fitzgerald, president of Vancouver-based IT firm Habaiiero Consulting Group, believes in empowering his employees.32 Employees share human resources duties by mentoring each other, encouraging career develop- ment, and making sure everyone understands their jobs.

Fitzgerald knows that an •au work and no play• ethic is nol a good way to define the business. As a resu lt, he gives his employees autonomy, telling them they will be "judged on the quality of their work- not the number of hours they put in.• Habaiiero allows telecommuting and flextime, and does not track sick days.

More recently, Fitzgera ld's employees noted that Habaiiero's invoicing model, which was based on a target number of billable hours per month, contradicted the company's commitment to work- life balance. The employees worked with manage- ment lo develop a new model of project-based billing that was more consistent with a truly flexible workplace, while still maintaining profitabi lity. Fitzgerald is pleased with how empowerment has worked for Habaiiero. He says that knowing what employees want and acting on that knowledge can help you "attract people who are engaged for lhe righl reasons." . .. . .... .. .... .. .... . .... .. .... .. .... . .... .. .... .. .... . .... .. .

Creating a Positive Work Environment A real growth area in OB research is positive organizational scholarship (also ca lled positive organizational behaviour), which studies how organizations develop human strengths, foster vitality and resilience, and unlock potentia l. Researchers in this area argue that too much of OB research and management practice has been targeted toward identifying what is wrong with organizations and their employees. In response, they try to study what is good about organizalions.33 Some key independent variables in positive

Twitter employees rave about their company's culture, which creates a posijive wor1< environment where smart and friendly colleagues learn; share values, ideas, and information; and wor1< together to help the company grow and succeed. At Twitter's San Francisco headquarters, employees like Jenna Sampson, community relations manager, enjoy free meals, yoga classes, and a rooftop garden.

Chapter 1 What Is Organizational Behaviour? 19

OB research are engagement, hope, optimism, and resilience in the face of strain. Researchers hope to help practitioners create positive work environments for employees.

Positive organizational scholars have studied a concept called • reflected best self"- asking employees to th ink about s ituations in which they were at their "personal best• to understand how to exploit their strengths. The idea is that we all have th ings at which we are unusually good, yet too often we focus on addressing our limitations and too rarely th ink about how to exploit our s trengths.34

Although positive organizational scholarship does not deny the negative (such as cri tical feedback), it does challenge researchers to look at OB through a new lens and pushes organizations to think abou t how to use their employees' strengths rather than dwell on their limita tions. One aspect of a positive work environment is the organiza- tion's culture, the top ic of Chapter 10. Organizational culture influences employee behaviour so strongly that organizations have begun to employ a culture officer to shape and preserve the company's personality. 35

Ethical Behaviour In an organizational world characterized by cutbacks, expectations of increasing produc- tivity, and tough competition, it's not surprising that many employees feel pressured to cut corners, break ru les, and engage in other questionable practices. Increasingly they face e thical dilemmas and ethical choices, in which they are required to identify right and wrong conduct. Should they "blow the whis tle" if they uncover illegal activities taking place in their company? Do they follow orders with which they don't personally agree? Do they "play politics" to advance their careers?

Ethics is the study of moral values or principles that guide our behaviour and inform us whether actions are right or wrong. Ethical principles help us "do the righ t thing," such as not padding expense reports, or not phoning in sick to attend the open- ing of Avengers 2: Age of Ultron.

As we show in Chapter 11, the study of ethics does not come with black and white answers. What constitutes good ethical behaviour has never been clearly defined, and, in recent years, the line differentiating right from wrong has blurred. We see people all around us engaging in unethical practices- elected officials pad expense accounts or take bribes; corporate executives inflate profits to cash in lucrative stock options; and university administrators look the other way when winning coaches encourage scholar- ship athletes to take easy courses.

Nonetheless, individuals who strive hard to create their own set of ethical values will more often do the right thing. Moreover, companies that promote a strong ethical mission encourage employees to behave with in tegrity, and provide strong ethical lead- ership that can influence employee decisions to behave ethically.36 Classroom train ing sessions in ethics have also proven helpful in maintaining a higher level of awareness of the impl ications of employee choices as long as the train ing sessions are given on an ongoing basis.37 The Ethical Di/em.ma on page 30 asks you to consider whether it's ever appropriate to engineer corporate opportunities to your personal advantage. What are the ethics about receiving •gifts" from clients?

Throughout this book, you \v iii find references to e thical and unethica l behaviour. The Focus 011 Ethics feature will provide you with thought-provoking illustrations of how ethics is treated in various organizations.

Coming Attractions: Developing an OB Model We conclude this chapter by presenting a general model that defines the field of OB, and stakes out its parameters, concepts, and relationships. By s tudying the model, you will have a good picture of how the topics in th is text can inform your approach to organizational issues and opportunities.

ethical dilemmas and ethical choices Situalioos in which indi- viduals are required to define right and wroog 0011duct.

ethics The study of moral values or principles lhat guide our behaviour and inform us whether actions are right or wrong.

2 0 Part 1 Understanding the Workplace

f) Describe the three levels of analysis in this book's OB model.

model An abstraction of reality. A simplified representation of some real-world phenomenon.

input Variables that lead to processes.

processes Actions that individuals, groups, and organizatioos engage in as a result of inputs and that lead to cer1ain outcomes.

EXHIBIT 1-3 A Basic OB Model

/ Inputs ' / Processes ' / Outcomes Individual Level Individual Level Individual Level • Diversity • Emotions and moods • Attitudes and stress • Personality • Motivation • Task performance • Values • Perception

I • Citizenship behaviour

• Decision making • Withdrawal behaviour --- -Group Level Group Level Group Level

• Group structure • Communication • Group cohesion • Group roles . • leadership . • Group functioning • Team responsibilities • Power and politics

• Conflict and negotiation

Organizational Level Organizationa l Level Organizational Level • Structure • Change practices • Productivity • Cu lture • Survival

'- " '- / '- -

An Overview A model is an abstraction of reality, a simpli fied representation of some real-world phe- nomenon. Exhibit 1-3 presents the skeleton of our OB model. fl proposes th ree types of variables (inputs, processes, and outcomes) al three levels of analys is (individual, group, and organizational). In the chapters that follow, we will consider the individual level, group behaviour, and the organizational system. The model illustrates that inputs lead lo processes, which lead lo outcomes; we wi ll discuss interrelationships at each level of analysis. Notice that the model also shows that outcomes can in fluence inputs in the future, which highlights the broad-reaching effect OB in itiatives can have on an organiza tion's future.

Inputs Inputs are the variables like personal ity. group structure, and organizational culture that lead to processes. These variables set the s tage for what will occur in an organization later. Many are determined in advance of the employment relationship. For example, individually diverse characteristics, personality, and values are shaped by a combination of an individual's genetic inheritance and childhood environment. Group structu re, roles, and team responsibilities are typ ically assigned immediately before or after a group is formed. Finally, organizational structure and culture are usually the resu lt of years of development and change as an organization adapts to its environment and builds up customs and norms.

Processes If inputs are like the nouns in OB, processes are like the verbs. Processes are actions that individua ls, groups, and organiza tions engage in as a resu lt of inputs and that lead to certain outcomes. At the individual level, processes include emotions and moods, motivation, perception, and decision making. At the group level, they include com- munication, leadership, power and politics, and conflict and negotiation. Finally, at the organizational level, processes include change practices.

Chapter 1 What Is Organizational Behaviour? 21

Outcomes Outcomes are Lhe key variables thal you want to explain or predicl, and thal are affecled by some olher variables. What are Lhe primary oulcomes in OB? Scholars have emphasized individual-level outcomes such as alliludes and slress, Lask per- formance, cilizenship behaviour, and wilhdrawal behaviour. At Lhe group level, cohesion and functioning are lhe dependent variables. Finally, at lhe organizational level, we look al overall productivity and survival. Because these outcomes will be covered in all the chapters, we will briefly d iscuss each here so you can understand Lhe •goal" of OB.

Attitudes and Stress Employee attitudes are lhe evaluations employees make, ranging from positive to nega- tive, abou t objects, people, or events. For example, lhe statement, ·1 really th ink my job is great,• is a positive job auitude, and •My job is boring and ted ious• is a negalive job attitude. Stress is an unpleasan t psychological process lhat occurs in response to environmental pressures.

Some people mighl th ink lhal influencing employee alliludes and slress is purely soft stuff and not the business of serious managers, but as we will show, altitudes often have behavioural consequences lhat direclly relate lo organizational effectiveness. The belief lhat satisfied employees are more productive than dissa tisfied employees has been a basic tenet among managers for years, although only now has research begun to support it. Ample evidence shows that employees who are more salisfied and lreated fairly are more willing lo engage in lhe above-and-beyond citizenship behaviour so vital in lhe contemporary business environment. For more informalion on lhe causes and consequences of stress as well as coping mechanisms, see OB on the Edge- Stress at Work on pages 116- 123.

Task Performance The combinalion of effectiveness and efficiency at doing your core job tasks is a reflec- lion of your level of task performance. If we th ink about lhe job of a factory worker, task performance could be measured by lhe number and quality of products produced in an hour. The task performance of a teacher would be lhe level of education Lhal stu- dents obtain. The task performance of a consultant might be measured by lhe limeliness and quality of lhe presentations lhey offer lo lhe cl ient. All these types of performance relate lo lhe core du ties and responsibililies of a job and are often direclly related to lhe functions listed on a forma l job description.

Obviously, task performance is Lhe most important human output conlributing to organizalional effectiveness, so in every chapter we devote considerable time Lo deta iling how Lask performance is affected by the topic in question.

Organizational Citizenship Behaviour The discrelionary behaviour lhat is not part of an employee's formal job require- ments, and that contributes Lo the psychological and social environment of the workplace, is called organizational citizen ship behav- iour (OCB), or simply citizenship behaviour. Recen t research has also looked at expanding the work on OCB to team behaviour.

Successful organizations have employees who will do more than Lheir usual job dulies- who will provide per- formance lhat is beyond expectations. In today's dynamic workplace, where tasks are increasingly performed by teams and flexibil ity is critical, employees who engage in •good

Are you ready to take on rnore

responsibility at work'?

I outcomes Key factors that are affected by some other variables.

attitudes Positive or negative feelings about objec1s, people, or even1s.

stress An unpleasant psychological process that occurs in response lo environmental pressures.

task perfonnance The oombina- tion of effectiveness and efficiency al doing your core job lasks.

organizational citizenship behaviour (DCB) Oiscrelion- ary behaviour that is not part of an employee's formal job requiremen1s, but 1hal nevertheless promotes the effective functioning of the organization.

22 Part 1 Understanding the Workplace

withdrawal behaviour The set of actions employees take to separate themselves from the 0<ganization.

citizenship" behaviours help others on their team, volunteer for extra job activities, avoid unnecessary conflicts, respect the spirit as well as the letter of rules and regula- tions, and gracefully tolerate the occasional work-related impositions and nuisances.

Organizations want and need employees who will do those th ings tha t are not in any job description. Evidence indicates that organizations that have such employees outperform those that don't.38 As a result, OB is concerned with organizational citizen- ship behaviour.

Withdrawal Behaviour We have already mentioned behaviour that goes above and beyond task requirements, but what about behaviour that in some way is below task requirements? Withdrawal behaviour is the set of actions tha t employees take to separate themselves from the organization. There are many forms of withdrawal, ranging from showing up late or fail ing to attend meetings to absenteeism and turnover.

Employee withdrawal can have a very negative effect on an organization. The cost of employee turnover alone has been estimated to run into the thousands of dollars, even for entry-level positions. Absenteeism also costs organizations signifi- cant amounts of money and time every year. For instance, a recen t survey found the average d irect cost to employers for absenteeism in Canada is $16.6 bill ion.39

In Sweden, an average of 10 percent of the country's workforce is on sick leave at any given time.40

It's obviously d ifficult for an organization to operate smoothly and attain its objectives if employees fai l to report to their jobs. The workflow is d isrupted, and important decisions may be delayed. In organizations that rely heavily on assembly- line production, absenteeism can be considerably more than a disruption; it can drastically reduce the qual ity of output or even shut down the facil ity. Levels of absenteeism beyond the normal range have a direct impact on any organization's effectiveness and efficiency. A h igh rate of turnover can also d isrupt the efficient running of an organization when knowledgeable and experienced personnel leave and replacements must be found to assume positions of responsibil ity. Research indicates that, in general, turnover is significantly harmful for organizational performance.41

All organizations, of course, have some turnover. Turnover rates vary greatly by country and, in part, reflect the economy of that country. If the •right• people are leaving the organization- the marginal and submarginal employees- turnover can actually be positive. It can create an opportunity to replace an underperforming individual with someone who has h igher ski lls or motiva tion, open up increased opportunities for promotions, and bring new and fresh ideas to the organization. In today's changing world of work, reasonable levels of employee-initiated turnover improve organizational flexibility and employee independence, and they can lessen the need for management- initiated layoffs. Thus, while it is reasonable to conclude that high turnover often indicates h igh employee withdrawal (and thus has a nega- tive effect on organizational performance), zero turnover is not necessarily the goal; it's also important for organizations to assess which employees are leaving, and why. Millennials have nearly double the turnover rates of Gen-Xers. According to a recent Gallup poll, 60 percent are open to new job opportunities and in 2016, 21 percent of millennials changed jobs.42

So why do employees withdraw from work through counterproductive behav- iours or quilling? As we will show later in the text, reasons include nega tive job alti- tudes, emotions, moods, and negative interactions with co-workers and supervisors. Despite these large turnover numbers for millennials, Vancouver-based Hootsuite CEO, Ryan Holmes, does not see all of this as bad. He welcomes turnover in his company, because some of it simply reflects people moving into other jobs in the

Chapter 1 What Is Organizational Behaviour? 23

" 0 JI ~ CAREER OBJECTIVES

I ~ What Do I Say About My Term ination? I got fi red! When prospective employe rs find out, they will neve r hire me. Is there anything I ca n say to tu rn th is a round?

-Matt

Dear Matt: Under this dark cloud, there are some silver linings: (1) firing, or involuntary

termination, happens to just about

everyone at least once in a career; and (2) there is a worldwide job shortage of

skilled workers. You might be amazed to know that, historically, individuals have changed jobs an average of 11

times over their early careers (from age

18 to 44). In fact, you can probably expect to stay in a job for less than

three years, which means you will have a lot of jobs in your lifetime.

Therefore, you should not feel

hopeless; you are likely to find your next job soon. ManpowerGroup's

recent survey of over 37 000 employers

in 42 countries found that 36 percent of organizations have talent shortages,

the highest percentage in 7 years.

Still, we know you are worried about how to present the facts of your

involuntary termination to prospective

employers. If you give a truthful, brief

account of the reason for your termina-

tion, you can position yourself well. Here

are some additional suggestions:

• Remember your soft skills count; in fact, they top the lists of employer requirements for all industries. According to Chuck Knebl, a com-

munications manager for the job

placement company WorkOne, use your resume and cover letter, inter-

views, and thank-you notes to show-

case your communication skills. Employers report they are also look-

ing for a teamwork attitude, positivity, personal responsibility, and punctual-

ity, so use every opportunity to dem-

onstrate these traits.

• Although your soft skills count, don't forget your technical skills;

employers agree they are equally important. Knebl advises you to use your resume to list your tech-

nical abilities and be prepared to elaborate upon request. Need

some more skills? Job training has

been shown to be helpful and can sometimes be free through colleges

and unemployment offices. • Emphasize your ongoing trajning and

education, especially as they relate to new technology; top performers

are known to be continuous Jeam- ers. Also, if you have kept up with recent trends in social media, show

it, but don't go on about your friend's

tweet to Rihanna.

Best w ishes for your success!

Sources: Bureau of Labor Statistics. United States Department of Labor, Employment Projec-

tions, http://www.bls.gov/emp/ep_chart_ OCll .

htm; G. Jones, "How the Best Get Better and Bene,;• HBNard Business Review (June 2008): 123-127; ManpowerGroup, "The Talent Shortage Continues/2014," http://www.manpowergroup.

com/wps/wcm/connecVOb882c15-38bf -41 f3-

8882-44c33d0e2952/2014 _ Talent_Short- age_WP_US2.pdf?MOO:AJPERES; J. Meister,

"Job Hopping Is the 'New Nonna!' for M l lennials:

Three Ways to Prevent a Human Resotree Night- mare," Fotbes (August 14, 2012), http://www. forbes.com/sites/jeannemelster/2012/08/14/,ob-

hopping-is-the-new-normal-for-mi lennials-three- ways-to-prevent-a-human-resource-nightmare/;

and N. Schulz, "Hard Unemployment Truths about 'Soft' Skils," Wall Street Journal, September 19, 2012, A15.

The opinions provided here are of the manag- ers and authors only and do not necessarily reflect those of their organizations. The authors or managers are not responsible for any errors or omissions, or for the results obtained from the use of this information. In no event will the authors or managers, or their related partner- ships or corporations thereof, be liable to you or anyone else for any decision made or action taken in reliance on the opinions provided here.

company. In fact, he says that management made a goal "that 2001o of our employ- ees, or around 200 people in total. aren't in the same seat by the end of 2017. •43

Group Cohesion Although many outcomes in our model can be conceptualized as individual-level phenomena, some relate to the way groups operate. Group cohesion is the extent to which members of a group support and validate one another at work. In other words, a cohesive group is one that sticks together. When employees trust one another, seek common goals, and work together to achieve these common ends, the group is cohesive; when employees are divided among themselves in terms of what they want to achieve and have little loyalty to one another, the group is not cohesive.

group cohesion The extent to which members of a group support and validate one anolher while at work.

24 Part 1 Understanding the Workplace

group functioning The quantity and quality of a work group's output.

productivity The combination of the effectiveness and efficiency of an organization.

effectiveness The degree to which an organization meets the needs of its clientele 0< customers.

efficiency The degree to which an organization can achieve its ends at a low cost.

organizational survival The degree to which an organization is able to exist and grow over the long term.

Ample evidence shows that cohesive groups are more effective.44 These results are found both for groups studied in highly controlled laboratory settings and for work teams observed in field settings. This finding fits with our intuitive sense that people lend to work harder in groups that have a common purpose. Companies attempt to increase cohesion in a variety of ways ranging from brief icebreaker sessions lo social events such as picnics, parties, and outdoor adventure team retreats. Throughout the text we will try to assess whether these specific efforts are likely lo increase group cohesive- ness. We will also consider how to enhance cohesion by picking the right people lo be on the team in the first place.

Group Functioning In the same way that positive job attitudes can be associated with higher levels of task performance, group cohesion should lead to positive group functioning. Group functioning refers to the quantity and quality of a group's work output In the same way that the performance of a sports team is more than the sum of individual play- ers' performance, group functioning in work organizations is more than the sum of individual task performances.

What does it mean to say that a group is functioning effectively? In some organiza- tions, an effective group is one that s tays focused on a core task and achieves its ends as specified. Other organizations look for teams that are able to work together collab- oratively to provide excellent customer service. Still others put more of a premium on group creativity and the flexib ility to adapt to changing situations. In each case, different types of activities will be required to get the most from the team.

Productivity The highest level of analysis in OB is the organization as a whole. An organiza tion is productive if it achieves its goals by transforming inputs in to outputs at the lowest cost Thus productivity requires both effectiveness and efficiency.

A hospital is effective when it successfully meets the needs of its clientele. It is efficient when it can do so al a low cost If a hospital manages to achieve higher output from iL~ present s taff by reducing the average number of days a patient is confined to bed or increasing the number of staff- patient contacts per day, we say the hospi tal has gained productive efficiency. A business firm is effective when il auains its sales or market share goals, but its productivity also depends on achieving those goals efficiently. Popular measures of organizational efficiency include return on investment, profi t per dollar of sales, and output per hour of labour.

Service organizations must include customer needs and requirements in assessing their effectiveness. Why? Because a clear chain of cause and effect runs from employee attitudes and behaviour to customer attitudes and profitability. For example, a recent study of six hotels in China indicated that negative employee attitudes decreased cus- tomer satisfaction and ultimately harmed the organization's profitabil ity.45

Survival The final outcome we will consider is organizational survival, which is simply evi- dence that the organization is able to exist and grow over the long term. The survival of an organization depends not just on how productive the organization is, but also on how well il fits with its environment. A company that is very productively making goods and services of little value lo the market is un likely to survive for long, so survival also relies on perceiving the market successfully, making good decisions about how and when to pursue opportuni ties, and successfully managing change lo adapt lo new business conditions.

Having reviewed the input, process, and outcome model, we will group topics based on whether we study them at the individual, group, or organizational level. We will deal with inputs, processes, and outcomes at all three levels of analysis, but we group the

Chapter 1 What Is Organizational Behaviour? 25

EXHIBIT 1-4 The Plan of the Book

The Individ ual

Inputs • Personality (Ch. 2) • Values (Ch. 3) • Diversity in Organizations

(Ch. 3)

Processes • Perception (Ch. 2) • Emotions and moods (Ch . 2) • Motivation (Ch. 4 and 5) • Decision making (Ch. 6)

Outcomes • Attitudes (Ch. 3) • Stress (OB on the Edge:

Stress at Work) • Task performance (all) • Cit izenship behaviour (all) • Withdrawal behaviour (all)

"'\ / The Group

Inputs • Group structures

(Ch. 6) • Group roles (Ch. 6) • Team responsibilrties

(Ch. 6)

Processes • Communication (Ch. 7) • Power and polit ics (Ch. 8) • Conflict and negotiation

(Ch. 9) • Leadership (Ch . 11)

Outcomes • Group cohesion (Ch. 6) • Group functioning (Ch . 6)

/ The Org anization "'\

Inputs • Culture (Ch. 10) • Structure (Ch. 13)

Processes • Change practices

(Ch. 14)

Outcomes • Profitability (Ch. 1) • Survival (Ch. 1 and 10)

chapters as shown in Exhibit 1-4 to correspond with the typ ical ways that research has been done in these areas. For example, it is easier lo understand one unified presenta- tion about how personal ity leads lo motivation, which leads lo performance, than to jump around levels of analysis. Because each level builds on the one that precedes it, after going through them in sequence you wi ll have a good idea of how the human side of organizations functions.

~~~~~~~~~~~~~~~~~~~ .... Summary Organiza tional behaviour (OB) investigates the impact lhal individuals, groups, and organiza tional structure have on behaviour with in an organization, and it applies that knowledge to make organizations work more effectively. Specifica lly, OB focuses on how to improve productivity; reduce absenteeism, turnover, and deviant workplace behaviour; and increase organizational citizenship behaviour and job satisfaction. The essential points of OB that you should keep in mind as you study this topic are listed in Exhibit 1-5.

EXHIBIT 1-5 The Fundamentals of OB

• OB considers the multiple levels in an organization: individual, group, and organizational.

• OB is built from the wisdom and research of multiple disciplines, including psychology, sociology, social psychology, and anthropology.

• OB takes a systematic approach to the study of organizational phenomena. It is research-based.

• OB takes a contingency approach to the consideration of organizational phenomena. Recommendations depend on the situation.

LESSONS LEARNED

• OB is for everyone. • OB draws upon a rigorous

multidisciplinary research base.

26 Part 1 Understanding the Workplace

Mylab Management

SNAPSHOT SUMMARY _

The Importance of OB Has Few Absolutes • Creating a Positive WOik Interpersonal Skills • OB Takes a Contingency Environment

Approach • Ethical Behaviour Defining Organizational Behaviour Challenges and Opportunities Coming Attractions: • What Do We Mean by in the Canadian Workplace Developing an DB

Organization? • Eoonomic Pressures Model • OB Is for Everyone • Continuing Globalization • An Overview

• Understanding Workforce • Inputs Complementing Intuition Diversity • Processes with Systematic Study

• Customer Service • Outcomes • Big Data • People Skills

Disciplines That Contribute • NetwOlked Organizations

to the OB Field • Social Media

• The Building Blocks of OB • Enhancing Employee Well-

• The Rigour of OB Being at Work

Study, practise, and explore real business situations with these helpful resources:

• Study Plan: Check your understanding of chapter concepts with self-study quizzes.

• Online Lesson Presentations: Study key chapter topics and work through interactive assessments to test your knowledge and master management concepts.

• Videos: Learn more about the management practices and strategies of real companies.

• Simulations: Practise management decision-making in simulated business environments.

.,. for Review

1. What is the importance of inter- personal skills in the workplace?

2. What is organizational behaviour (OB)?

3. Why is systematic study of value to OB?

4. What are the major behavioural science disciplines that contrib·

ute to OB?

5. Why are there so few absolutes in OB?

6. What workplace challenges provide opportunities to apply OB concepts?

7. What are the three levels of analysis in this book's OB model?

for Managers

• Resist the inclination to rely on generalizations; some provide valid insights into human behav- iour, but many are erroneous. Get to know the person, and under- stand the context.

• Use metrics rather than "hunches" to explain cause-and- effect relationships.

• Work on your interpersonal skills to increase your leadership potential.

• Improve your technical skills and conceptual skills through train- ing and staying current with OB trends such as big data.

• OB can improve your employees' work quality and productivity by showing you how to empower your employees, design and implement change programs, improve customer service, and help your employees balance work-life conflicts.

for You

• As you journey through this course in OB, bear in mind that the processes we describe are as relevant to you as an individual as they are to organizations, manag- ers, and employees.

• When you work together with stu- dent teams, join a student orga- nization, or volunteer time to a community group, know that your ability to get along with others has an effect on your interactions with the other people in the group and the achievement of the group's goals.

• If you are aware of how your per- ceptions and personality affect your interactions with others, you can be more careful in forming your initial impression of others.

• By knowing how to motivate oth - ers who are working with you, how to communicate effectively, and when to negotiate and com- promise, you can get along in a variety of situations that are not necessarily work-related.

0 ICll:I

"' -

28 Part 1 Understanding the Workplace

THE BATTLE OF THE TEXTS -"' CCI 0 POI NT

Walk into your nearest major bookstore and you will see

a large section of books devoted to management whose

topics we apparently need to know about:

• The Secret (Berrett-Koehler, 2014)

• Tum the Ship Around! (Portfolio, 2013)

• The Way You Do Anything Is the Way You Do Every- thing (Wiley, 2014)

• Leadership Safari (Best Seller, 2014)

• Business Is a Baby (Amazon Digital Services, 2014)

• Think Like a Freak (William Morrow, 2014)

• Spiraling Upward (Amazon Digital Services, 2015)

• Retire! Don't Retire (Berrett-Koehler, 2015)

• Top Dog (Amazon Digital Services, 2015)

Popular books on OB often have cu1e titles and are

fun to read, but they make the job of managing people seem like it's just a matter of having a good slogan and

five easy steps. If you dig into the texts, you will find that

most are based on the au1hor's opinions rather than sub-

stantive research. Most become popular, in part, because

people largely agree with the opinions they are reading and enjoy the author's writing style. Often, the writers

are presentation speakers or consultants whose real

business is in delivering ideas to you. When the author

is a veteran from the business world, it is doubtful that

one person's experience translates into effective man-

agement practice for everyone. Even when the authors are numbers-oriented, as are the "Freak" authors Steven

Levitt and Stephen Dubner, their conclusions for man-

agement are not management-research based. So why

do we base our own management philosophies on these

books when, with a little effort, we can access knowl- edge produced from thousands of scientific studies on

human behaviour in organizations?

OB is a complex subject. Few, if any, simple state- ments about human behaviour are generalizable to all

people in all situations. Would you try to apply leadership

insights you got from a book about Star Wars or Break- ing Bad to managing software engineers in the twenty- first century? Surely not. Neither should we try to apply

leadership insights that are not based on research about

the type of workplaces in which we function.

COUNTERPOINT People want to know about management- the good, the bad, and the ugly. People who have experience or

high interest write books abou1 the topics that interest

readers. When books become popular, we know people

are finding good results by applying the author's man-

agement ideas. Isn't it better to learn abou1 management from people in the trenches, as opposed to the latest

obscure references from the "Ivory Tower"? Many of the

most important insights we gain from life aren' t neces-

sarily the product of careful empirical research studies.

"Fluffy" management guides sometimes do get pub-

lished, and once in a while they become popular. But do they outnumber the esoteric research studies pub-

lished in scholarly journal articles every year? Far from

it; sometimes it seems that for every popular business

text, there are thousands of scholarly journal articles.

Many of these articles can hardly be read by individuals in the workplace- they are buried in academic libraries,

riddled with strange acronyms and "insider" tenns, and

light on practical application. Often they apply to specific

management scenarios, so they are even less generaliz-

able. For example, a few recent management and OB

studies were published in 2015 with the following titles:

• Transferring Management Practices to China: A Bourdieusian Critique of Ethnocentricity

• Cross-Cultural Perceptions of Clan Control in Korean Multinational Companies: A Conceptual Investigation of Employees ' Fairness Monitoring

Based on Cultural Values

• The Resistible Rise of Bayesian Thinking in Manage- ment: Historical Lessons from Decision Analysis

• A Model of Rhetorical Legitimation: The Structure of Communication and Cognition Underlying Institu-

tional Maintenance and Change

We don't mean to poke fun at these studies, but our

point is that all ways of creating knowledge can be criti-

cized. Popular books can add to our understanding of how people work and how to best manage them; we

shouldn't assume they are not of value. There is no

one right way to learn the science and art of managing

people in organizations. The most enlightened managers

gather insights from multiple sources: their own expe-

rience, research findings, observations of others, and, yes, the popular business press. Authors and academics

have an important role to play, and it isn' t fair to con-

demn business books with catchy titles.

Chapter 1 What Is Organizational Behaviour? 29

BREAKOUT GROUP EXERCISES

Forn, small groups to discuss the following topics, as assigned by your instructor.

1. Consider a group situation in which you have worked. To what extent did the group rely on the technical skills of the group members vs. their interpersonal skills? Which skills seemed most important in helping the group func- tion well?

2. Identify some examples of "worst jobs." What conditions of these jobs made them unpleasant? To what extent were these conditions related to behaviours of individuals?

3. Develop a list of "organizational puzzles," that is, behaviour you have observed in organizations that seemed to make little sense. As the term progresses, see if you can begin to explain these puzzles, using your knowledge of OB.

EXPERIENTIAL EXERCISE

Managing the OB Way Divide the class into groups of approximately four members each. Each group should consider the following scenario:

You will assume the role of a special committee of district managers at a large phannaceutical company. Your com-

mittee will be meeting to discuss some problems. The process set up by the company is as follows:

1. Each committee member should first review the problem privately and formulate independent ideas for what might be done.

2. At the start of the meeting, each member should spend one minute addressing the group.

During the meeting, the committee must reach a consensus on both the best solution and supporting rationale to

each problem. How this is done is entirely up to the committee members, but you must come up with a consensus

decision and not a majority opinion achieved by voting.

Here is the problem your committee is to consider:

The company has no specific policy regarding facial hair. Tom, a pharmaceutical sales rep with a little more than a year's

experience and an average (but declining) sales record, has grown a ve,y long and ragged beard that detracts significantly

from his appearance. His hobby is playing bass in an amateur bluegrass band, and he feels that a ragged beard is an important part of the act. Tom says his beard is a personal fashion statement that has to do with his individual freedom.

There have been numerous complaints about Tom 's appearance from both doctors and phannacists. The manager

has talked to him on many occasions about the impact his appearance could have on his sales. Nevertheless, Tom still has the beard.

The manager is concerned about Tom's decreasing sales as well as the professional image of the sales force in the

medical community. Tom says his sales decrease has nothing to do with his beard. However, sales in the other territories in the district are significantly better than they were last year.

When the groups have reached their consensus decisions, the following questions will serve for class discussion:

1. What do you think are the concerns for the company regarding Tom's facial hair? Should they care about his appearance?

2. What was your group's consensus decision regarding the issue with Tom's facial hair?

3. Suppose Tom told you he grew a beard as part of his personal religion. Do you think that announcement would change how you talk to Tom about the issue?

30 Part 1 Understanding the Workplace

-"' CCI 0

ETHICAL DILEMMA

There's a Drone in Your Soup It is the year 2020, and drones are everywhere. Alibaba

quadcopters have been delivering special ginger tea

to customers in Beijing, Shanghai, and Guangzhou for

years; Amazon's octocopters finally deliver packages

in most major cities within 30 minutes without knock-

ing down pedestrians; and college students everywhere

welcome late-night nachos from Taco Bell Tacocopters.

Indoor drones are still in the pioneering phase- backyard

enthusiasts are building tiny versions, but no large-scale

commercial efforts have been put toward indoor utility

drones. That's all about to change.

You work for a multinational technology corporation on

a sprawling, 25-acre headquarters campus, with offices

in 2 million square feet of interior space in one large build -

ing and four additional smaller (but still large) buildings.

The offic ial Head of Interior Spaces is your boss; you're

the leader of the Consideration of New Things team. In a

meeting with your team, your boss says, "I've just heard

from my friend at Right To Drones Too (R2D2) that his

group has perfected their inside drone. It 's small and light

but can carry up to 1 0 pounds. It includes a camera, a

speaker, and a recorder."

Your team expresses surprise; no one even knew an

inside utility drone was under development, and govern-

ments worldw ide are still haggling over regulations for

drones. Your boss goes on enthusiastically, "I've seen the

little drones, and I think you'll be impressed - not only can

they scoot across the quad, but they can fetch things off

tables, grab me a latte, attend meetings for me, check

over your shoulders to see what you're working on .. .

anything! They're really accurate, agile, and super quiet, so

you'll barely even know they're around. My friend wants us

to have the first 1 00 drones here for free, and he's willing

to send them over tomorrow! I figure we can hand them

out randomly, although of course we'll each have one."

Your boss sits back, smiling and expecting applause.

You glance at your team members and are relieved to see

doubt and hesitation on their faces.

· sounds, uh, great," you reply. "But how about the

team takes the afternoon to set the ground rules?"

Questions

1. How might the R2D2 drones influence employee behaviour? Do you think they will cause people to act more or less ethically? Why?

2. Who should get the drones initially? How can you justify your decision ethically? What restrictions for use should these people be given, and how do you think employees, both those Who get drones and those who don't, will react to this change?

3. How will your organization deal with sabotage or misuse of the drones? The value of an R2D2 drone is $2500.

4. Many organizations already use electronic monitor- ing of employees, including sifting through website usage and email correspondence, often without the employees' direct knowledge. In what ways might drone monitoring be better or worse for employees than covert electronic monitoring of web or email activity?

Chapter 1 What Is Organizational Behaviour? 31

CASE INCIDENTS

Apple Goes Global It was not long ago that products from Apple, perhaps

the most recognizable name in electronics manufactur-

ing around the world, were made entirely in the United

States.46 This is not so anymore. Now, almost all of the

approximately 70 million iPhones, 30 million iPads, and

59 million other Apple products sold yearly are manu-

factured overseas. This change represents more than

20 000 jobs directly lost by US workers, not to mention

more than 700 000 other jobs given to foreign companies

in Asia, Europe, and elsewhere. The loss is not temporary.

As the late Steve Jobs, Apple's iconic co-founder, told US

President Obama, "Those jobs aren't coming back."

Vancouver-based Lululemon Athletica has also trans-

ferred many jobs out of Canada to countries such as

Cambodia and Bangladesh. When the company first

started in 1998, all of its factories were located in Canada.

By 2007, only 50 percent of the factories were in Canada

and now that figure is only 3 percent.

At first glance, the transfer of jobs from one workforce

to another would seem to hinge on a difference in wages,

but Apple shows this is an oversimplification. In fact, some

S8if paying US wages would add only $65 to each iPhone's

expense, while Apple's profits average hundreds of dollars

per phone. Rather, and of more concern, Apple's lead-

ers believe the intrinsic characteristics of the labour force

available to them in China-which they identify as flexibility,

diligence, and industrial skills-are superior to those of the

North American labour force. Apple executives tell of shorter

lead times and faster manufacturing processes in China

that are becoming the stuff of company legend. "The speed

and flexibility is breathtaking," one executive said. "There's

no American plant that can match that.• Another said, "We

shouldn't be crtticized for using Chinese workers. The US

has stopped producing people with the skills we need."

The perception of an overseas advantage might sug-

gest that the North American workforce needs to be better

led, better trained, more effectively managed, and more

motivated to be proactive and flexible. If Canadian and US

workers are less motivated and less adaptable, it's hard

to imagine how that does not spell trouble for the future

of the North American workforce.

There is an ongoing debate whether companies such

as Lululemon and Apple serve as examples of the failure of

North America to maintain manufacturing plants at home

or whether these companies should best be viewed as

examples of global ingenuity.

Questions

1. What are the pros and cons for local and overseas labour forces for companies going global? What are the potential political implications for country relationships?

2. Do you think Apple is justified in drawing the obser- vations and conclusions expressed in the case? Why or why not? Do you think tt is good or harm- ful to the company that tts executives have voiced these opinions?

3. How could managers use increased worker flex- ibility and diligence to increase the competitive- ness of their manufacturing sites? What would you recommend?

Big Data for Dummies Do you need big data? Maybe the question is better

phrased as: Can you afford not to use big data? The age

of big data is here, and to ignore its benefits is to run the

risk of missed opportunities. 47

Organizations using big data are quickly reaping

rewards, as a survey of 2022 managers worldwide indi·

cated recently. In fact, 71 percent of respondents agreed

that organizations using big data will gain a "huge compel -

ttive advantage." These managers also saw the need for

big data: 58 percent responded that they never, rarely, or

only sometimes have enough data to make key business

decisions. Furthermore, they've witnessed the benefits:

67 percent agreed that big data has helped their organiza-

tion to innovate. So why did only 28 percent find that their

access to useful data significantly increased in a year?

According to Amy Braverman, a principal statistician

who analyzes NASA's spacecraft data, the problem is in

interpreting the new kinds and volumes of data we are

able to collect. "This opportunistic data collection is lead-

ing to entirely new kinds of data that aren't well suited to

32 Part 1 Understanding the Workplace

-"' CCI 0

the existing statistical and data-mining methodologies,"

she said. IT and business leaders agree: In a recent sur-

vey, "determining how to get value" was identified as the

number one challenge of big data.

With strong need combatting the high hurdle for usabil-

ity, how should a company get started using big data?

The quick answer seems to be to hire talent. But not just

anyone will do. Here are some points to ponder when hir-

ing data professionals:

1. Look for candidates with a st rong educational

background in analytics/ statistics. You want

someone who knows more than you do about han-

dling copious amounts of data.

2. The ideal candidates will have specific expe- rience in your industry or a related industry.

"When you have all those PhDs in a room, magic

doesn't necessarily happen because they may not

have the business capability," said Andy Rusnak, a

senior executive at Ernst & Young.

3. Search for potential candidates from indust ry leader organizations that are more advanced

in big data.

4. Communication s kills are a must . Look for a candidate "who can translate PhD to English, " says

SAP Chief Data Scientist David Ginsberg. He adds,

"Those are the hardest people to find."

5. Find candidat es with a proven record of find-

ing useful information from a mess of data,

including data from questionable sources. You

want someone who is analytical and discerning.

6. Look for people who can think in 8- to

10-week periods, not just long term. Most data

projects have a short-term focus.

7. Test candidates' expertise on real problems.

Netflix's Director of Algorithms asks candidates, "You have this data that comes from our users. How

can you use it to solve this particular problem?"

Quest.ions

Let's say you work in a metropolitan city for a large

department store chain and your manager puts

you in charge of a team to find out whether keep-

ing the store open an hour longer each day would

increase profits. What data might be available to

your decision-making process? What data would be

important to your decision?

What kinds of data might we want in OB

applications?

As Braverman notes, one problem with big data is making sense of the information. How might a better

understanding of psychology help you sift through

all this data?

Developing Interpersonal Skills We note in this chapter that hav-

ing a broad range of interpersonal

skills to draw on makes us more

effective organizational partici -

pants. So what kinds of interper-

sonal skills does an individual

need in today's workplace?

Robert Quinn, Kim Cameron, and their colleagues have developed a

model known as the "Competing Values Framework" that can help us

identify some of the most useful skills. 48 They note that the range of issues

organizations face can be divided along two dimensions: internal-external

and flexibility-control. This idea is illustrated in Exhibit 1-6. The internal-

extemal dimension refers to the extent that organizations focus on one

of two directions: either inwardly, toward employee needs and concerns

and/or production processes and internal systems; or outwardly, toward

such factors as the marketplace, government regulations, and the chang-

ing social, environmental, and technological conditions of the future. The

flexibility-control dimension refers to the competing demands of organi-

zations to stay focused on doing what has been done in the past versus

being more flexible in orientation and outlook.

Because organizations face the competing demands shown in Exhibit 1-6,

it becomes obvious that managers and employees need a variety of skills to

help them function within the various quadrants at cfifferent points in time. For

instance, the skills needed to operate an efficient assembly-line process are

not the same as those needed to scan the external environment or to cre-

ate opportunities in anticipation of changes in the environment. Quinn and his

EXHIBIT 1-6 Competing Values Framework Flexibility

!l m x ~

~ .. ... ~ .; -- ii! c

~ ~ Cl) ~ .5 c

' Control Source: Adapted from K. Cameron and R. E. Quinn, Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework, 2006, ISBN: 9780787982836, Fig 3.1, pg. 35. Copyright © John Wiley & Sons.

colleagues use the term master manager to indicate that successful managers learn and apply skills that will help them manage across the range of organiza-

tional demands; sometimes moving toward flexibility and other times moving

toward control, and sometimes being more internally focused and other times

being more externally driven. 49

As organizations increasingly cut their layers, reducing the number of

managers while also relying more on the use of teams in the workplace,

the skills of the master manager apply as well to the employee. In other

words, considering the Competing Values Framework, we can see that

both managers and individual employees need to learn new skills and

new ways of interpreting their organizational contexts. Continuing to use

traditional skills and practices that worked in the past is not an option. The

growth in self-employment also indicates a need to develop more inter-

personal skills, particularly for anyone who goes on to build a business

that involves hiring and managing employees.

Exhibit 1 -7 outlines the many skills required of today's manager. It gives

you an indication of the complex roles that managers and employees fill

in the changing workplace. The skills are organized in terms of four major

roles: maintaining flexibility, maintaining control, maintaining an external

focus, and maintaining an internal focus. Identifying your own strengths

and weaknesses in these skill areas can give you a better sense of how

close you are to becoming a successful manager.

On the flexibility side, organizations want to inspire their employees

toward high-performance behaviour. Such behaviour includes looking

ahead to the future and imagining possible new directions for the orga-

nization. To do these things, employees need to think and act like men-

tors and facilitators. It is also important to have the skills of innovators

and brokers. On the control side, organizations need to set clear goals

about productivity expectations, and they have to develop and implement

Chapter 1 What Is Organizat ional Behaviour? 33

34 Part 1 Understanding the W orkp lace

-"' CCI 0

• • • • • • • • • • • • • • • • • • • • •

Practising Skills

EXHIBIT 1-7 Skills for Mastery in the New Workplace Flexibility

1. Understanding yourself and others

2. Interpersonal communication

1. Living with change 2. Creative thinking

3. Developing subordinates

3. Managing change ..--i--

1. Team building • 2. Participative '·,, Mentor Innovator.,.·

decision making , , •• ' . 3. Conflict ', , • ' ..

management

Internal

I. Receiving and organizing information

2. Evaluating routine information

3. Responding to routine information

Facil it ator ·,. •• . .· • • •• • • . '

Broker

Monitor ,;' .... Producer . ' . ' . ' . . • • . . • • • • . .

• • ,'Coordinator Director ...

1. Building and maintaining a power base

2. Negotiating agreement and commitment

3. Negotiating and selling ideas

External

1. Personal productivity and motivation

2. Motivating others 3. Time and stress

managemen t

I. Planning ! 1. Taking initiative 2. Organizing 2. Goal setting 3. Con trolling 3. Delegating effectively

Control

systems to carry out the production process. To be effective on the pro-

duction side, employees need to have the skills of monitors, coordinators,

directors, and producers. The Experiential Exercise on page 29 helps you

better understand how c losely your views on the ideal skills of managers

and leaders match the skills needed to be successful in the broad range

of activities that managers and leaders encounter.

At this point, you may wonder whether it 's possible for people to learn

all of the skills necessary to become a master manager. More important,

you may wonder whether we can change our individual style, say from

more controlling to more flexible. Here is what Peggy Kent, chair, former

president, and CEO of Century Mining Corporation (a mid -tier Canadian

gold producer), said about how her managerial style changed from con-

trolling to more flexible over time: "I started out being very dictatorial.

Everybody in head office reported to me. I had to learn to trust other exec-

utives so we could work out problems together."50 So, while it is probably

true that each of us has a preferred style of operating, it is also the case

that we can develop new skills if that is something we choose to do.

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

As the father of two young children, Marshall Rogers thought that serv-

ing on the board of Marysville Daycare would be a good way to stay in

touch with those who cared for his children during the day. 51 But he never

dreamed that he would become involved in union-management negotia-

tions with daycare-centre employees.

late one Sunday evening, in his ninth month as president of the day-

care centre, Rogers received a phone call from Grace Ng, a union rep-

resentative of the Provincial Government Employees' Union (PGEU). Ng

informed Rogers that the daycare employees would be unionized the fol-

lowing week. Rogers was stunned to hear this news. Early the next morn-

ing, he had to present his new marketing plan to senior management at

T echtronix Industries, where he was vice-president of marketing . Somehow he made it through the meeting, wondering wrry he had not been aware of

the employees' unhappiness, and how this action would affect his children.

Following his presentation, Rogers received documentation from the

Labour Relations Board indicating that the daycare employees had been

working to unionize themselves for more than a year. Rogers immediately

contacted Xavier Breslin, the board 's vice-president, and together they

determined that no one on the board had been aware that the daycare

workers were unhappy, let alone prepared to join a union.

Hoping that there was some sort of misunderstanding, Rogers called

Emma Reynaud, the Marysville supervisor. Reynaud attended most board

meetings, but had never mentioned the union-organizing drive. Yet Reyn-

aud now told Rogers that she had actively encouraged the other daycare

employees to consider joining the PGEU because the board had not been

interested in the employees' concerns, had not increased their wages suf-

ficiently over the past two years, and had not maintained communication

channels between the board and the employees.

All of the board members had full-time jobs elsewhere, and many

were upper- and middle-level managers in their own companies. They

were used to dealing with unhappy employees in their own workplaces,

although none had experienced a union-organizing drive. Like Rogers,

they had chosen to serve on the board of Marysville to stay informed

about the day-to-day events of the centre. They had not really thought of

themselves as the centre's employer, although, as board members, they

represented all the parents of children enrolled at Marysville. Their main

tasks on the daycare-centre board had been setting fees for the children

and wages for the daycare employees. The board members usually saw

the staff members several times a week, when they picked up their chil-

dren, yet the unhappiness represented by the union-organizing drive was

surprising to all of them. When they met at an emergency board meeting

that evening, they tried to evaluate what had gone wrong at Marysville.

Questions 1. If you were either a board member or a parent, how would you know

that the employees taking care of your children were unhappy with their jobs?

2. What might you do if you learned about their unhappiness?

3. What might Rogers have done differently as president of the board?

4. In what ways does this case illustrate that knowledge of OB can be applied beyond your own workplace?

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

1. Talk to several managers you know and ask them what skills they think are most important in today's workplace. Ask them to specifi- cally consider the use of teams in their workplace, and what skills their team members most need to have but are least likely to have. How might you use this information to develop greater interper- sonal skills?

2. Talk to several managers you know and ask them what skills they have found to be most important in doing their jobs. Why did they find these skills most important? What adVice would they give a would-be manager about skills worth developing?

Chapter 1 What Is Organizational Behaviour? 35

•••••••••••••

Reinforcing Skills

0 f)

9 e 0

Perception, Personality, and Emotions

Define perception, and explain the factors that influence it. Explain attribution theory, and list the three determinants of attribution.

Describe personality, the way it is measured, and the factors that shape it.

Describe the Myers-Briggs Type Indicator personality framework and its strengths and weaknesses.

Identify the key traits in the Big Five Personality Model.

Can a manager with a

hard-driving personality attract employees who

have the same kind of drive?

0 Demonstrate how the Big Five personality traits predict behaviour at work.

0 Differentiate between emotions and moods. 9 Show the impact of emotional labour on

employees.

0 Contrast the evidence for and against the existence of emotional intell igence.

Q) Identify strategies for emotion regulation and their likely effects.

ow does someone become a success- ful entrepreneur?1 Some say it's a pro- cess of elimination-when people find through trial and error that there is no job that fits them, they create their own; the more trial and error, the more likely

the person will become successful. Others say success comes from a lengthy process of nurtur- ing and mentoring. Still others say it's about having the right stuff-the right personality.

Michele Romanow, co-founder of Buytopia.ca, an online marketplace for goods and services,

would say that her success is from all of the above: personality, nurturing/mentoring,

and experience. First, while working Michael Na!1ef~ images on her cMI engineering degree at

Queen's, she realized that she was not pursuing the life she wanted. Instead, she recognized that she wanted to become an entrepreneur, which

she did in her fourth year of university, in 2008. She opened the Tea Room (a zero-waste cafe) on campus and operated it while earning her MBA. She has long since graduated, but the Tea Room is still run by the

Queen's student government. Second, Romanow was nurtured by her parents. When she was debating whether to leave a corporate job at Sears to launch Buytopia, her parents urged her to do so. They recognized

that Romanow was meant to be a successful entrepreneur. Third, Romanow learned from the personal experience of both her business successes and failures. She did not let

her failures reduce her enthusiasm for entrepreneurship, though. "I think entrepre- neurship is, in many ways, luck and timing as well. I think it's really important to

look at where the economy is going and where the growth and trends are. You gotta have an online strategy. You certainly have to have a website,• said Romanow.

Romanow is passionate about entrepreneurship. At 32, she is the youngest dragon on Dragons' Den, a Canadian television program that now has spinoffs in

28 countries. The program gives her the opportunity to provide insight and support to entrepreneurs of the future. All of our behaviour is somewhat shaped by our perceptions, personalities, emotions,

and experiences. In this chapter, we consider the role that perception plays in affecting the way we see the world and the people around us. We also consider how personality characteris-

tics affect our attitudes toward people and situations. We then consider how emotions shape many of our work-related behaviours.

\ I I

:'o': , ' , '

• What causes people to have different perceptions of the same situation? 'l'IIE BIG IDEA • Can people be mistaken in their perceptions?

• Have you ever misjudged a person? Do you know why?

• Can perception really affect outcomes? • Are people born with their personalities?

• Ever wonder why the grocery clerk is always smiling?

Individual differences can have a large

i1npacl on ho\,' groups and organizaLions

function.

38 Part 1 Understanding the Workplace

O Define perception, and explain the factors that influence it.

perception The process by which individ\Jals organize and interpret !heir impressions in 0<der to give meaning to their environment.

Perception Perception is the process by \vhich we organize and interpret impressions to give meaning to our environment. However, what we perceive can be substantially different from objective reality. We often disagree about what is real. For example, all employees in a firm may view it as a great place to work- favourable working conditions, inter- esting job assignments, good pay, excellent benefits, understanding and responsible management- but, as most of us know, it's very unusual to find universa l agreement.

Perception is important to organizational behaviour {OB) because people's behaviour is based on their percep- tion of what rea lity is, not on reality itself. The world as it is perceived is the world that is behaviourally important. In other words, our perception becomes the reality from which we act. To understand what all of us have in common in our interpretations of reality, we need to begin with the factors that in fluence our perceptions.

Factors That Influence Perception

\.Vhat causes people to ha\'e different per-

ceptions of the same situation'?

A number of factors shape and sometimes distort perception. These factors can reside in the perceiver; in the object, or target, being perceived; or in the situation in which the perception is made. Exhibit 2-1 summarizes the factors that influence perception.

The Perceiver When you ("the perceiver") look at a target, your interpretation of what you see is heavily influenced by your personal characteristics- attitudes, motives, interests, past experiences, and expectations. In some ways, we hear what we want to hear2 and we see what we want to see-not because it's the truth, but because it conforms to our

EXHIBIT 2-1 Factors That Influence Percept ion

The Situation The Perceiver

• Time • Attitudes • Work setting • Motives • Social setting • Interests

• Experience • Expectations

Perception

+ The Target

• Novelty • Motion • Sounds • Size • Background • Proximity • Similarity

Chapter 2 Perception, Personality, and Emotions 39

Lhinking. For instance, recenl research indicated tha t supervisors perceived employees who started work earl ier in Lhe day as more conscienlious and Lherefore as h igher performers; however, supervisors who were nighl owls themselves were less likely to make Lhat erroneous assumption.3 Some perceptions created by attiludes like these can be counteracted by objective evaluation, but olhers can be insidious. Consider, for instance, observer perceptions of a recent shooting in New York. There were two eyewitnesses- one said a police officer chased and shol a fleeing man; the other said a handcuffed man lying on the ground was shot. Neilher perceived lhe situation cor- rectly: The man was actually auempting lo attack a pol ice officer with a hammer when he was shot by anolher officer. 4

The Target A target's characteris tics also affect what we perceive. Because we don't look at targelS in isolation, lhe relalionship of a targel to its background influences perception. For instance, we can perceive women, Indigenous people, Asians, or members of any other group lhal has clearly distinguishable characteristics as alike in o ther unre- lated ways as well . Often, these assumptions are harmful, as when people who have criminal records are prejudged in the workplace even when il is known they were wrongly arresled.5 Somelimes differences can work in our favour, though, such as when we are drawn to targe ts that are d ifferent from what we expect. For instance, in a recent study participants respected a professor wearing a T-shirt and sneakers in the classroom more than the same professor dressed lraditionally. The professor stood out from the norm for the classroom selling and was Lherefore perceived as an individualist.6

The Situation Context mauers too. The time al which we see an object or evenl can influence atten- lion, as can localion, ligh t, heat, or any number of situational factors. For example, at a nightclub on Saturday night, you may not nolice someone •decked out." Yet that same person so attired for your Monday morning management class would certainly catch your attention. Neither the perceiver nor the target changed between Saturday night and Monday morning, bul the silualion changed.

People are usually not aware of the factors tha t influ- ence their view of reality. In fact, people are nol even that perceptive about Lheir own abililies.7 Thankfully, aware- ness and objective measures can reduce our perceplion distortions. For instance, when people are asked lo ponder specific aspects of their ability, they become more realistic in their self-perceptions.8 Let's next consider how we make perceptions of others.

Perceptual Errors

Can people be mistaken

in their percel)t ions'?

Perceiving and in terpreling why others do what Lhey do takes time. A~ a resu lt, we develop techniques to make this task more manageable. These techniques are frequently valuable- they allow us lo make accurate perceptions rapidly and provide valid data for making predictions. Many of our perceptions of others are formed by first impressions and small cues that have little supporting evidence. This is particularly lroublesome- bul common- when we infer anolher person's morality. Research indicates we form our slrongest impressions based on what we perceive about another's moral character, bul our initia l informalion about th is can be sketchy and unfounded.9 Some of Lhe errors that distort the perceplion process are allribution theory, selective perception, halo effect, contrast effects, and stereotyping.

40 Part 1 Understanding the Workplace

I\ 0 l' ~ CAREER OBJECTIVES

L~ So What If I'm a Few Minutes Late to Work? I'm often late to work; some- thing always comes up at t he last minute . But my boss is such a jerk a bout it! He's threatening t o insta ll a t ime clock. This is so insult ing-I'm in ma nagement. I' m a professional, I'm on salary, and I do t he work! Please t e ll me how t o ta lk some sense into him.

-Renee

Dear Renee:

This issue seems to be very frustrating

to you, and we'd like to help you elimi- nate that dissatisfaction. Let's start by

analyzing why you and your boss think

differently on the issue. You and he cer- tainly perceive the situation differently-

he sees your lateness as a violation, and you see it as a natural occurrence.

In many other jobs, precise timing may

not be expected, valued, or needed. Perhaps your boss is trying to highlight

the value he places on punctuality. Or

maybe he sees your lateness as unethi- cal behaviour that cheats your organi-

zation of your valuable work time.

According to Ann Tenbrunsel, Director of the Institute for Ethical

Business Worldwide, the way we look

at our decisions changes our percep-

tion of our behaviours. You view your

tardiness as something that just hap- pens, not part of a decision process.

What if you looked at your tardiness

as a daily ethical decision? Your orga- nization has a start time to which you

agreed as a condition of your employ-

ment, so coming in late is a deviation from the standard. There are actions

you can take throughout your early

morning that control your arrival time. So, by this model, your behaviour is

unethical. Your situation is not uncommon;

we all have moral blind spots, or situa-

tions with ethical ramifications we don't see. Also, as we said earlier, other orga-

nizations may not care about your arrival

time, so it's not always an ethical situa- tion. But for situations where ethics are

in play, research indicates punishment

doesn't work. Reframing the decisions so we see the ethical implications does

work. Try these steps to gain insight:

• Look at the motives for your decisions during your morning routine. Can you see where you make choices?

• Consider your past actions. When you think back about your

Attribution Theory

early-morning decisions, do you find yourself justifying your delays?

Justification signals that our deci-

sions might be suspect.

• Look at the facts. How do the reasons for your past delays reflect attitudes you have unconsciously acted on?

If you can see the ethical aspect

of your daily lateness, you can work to meet the expectation. Think briefly

about the ethics of your morning

choices when you first wake up, and you' II be much more likely to be on time.

Sources: C. fl/loore and A E. Tenbrunsel, .. Just Thnk About h'? Cognttive Complexity and Moral 01oice," Organizational Behavior and Human Decision Processes 123, no. 2 (2014), pp. 138- 49; A. Tenbrunsel, Ethical Systems, www.ethical- systems.org/oontenVann-tenbrunsel, accessed May 7, 2015; Review and podcast of Blind Spots: \ll,1)y We Fail to Do What's Right and What to Do about It, May 4, 2015, http://press.princeton.edu/ titles/9390.html, accessed May 7, 2015.

The opinions provided here are of the authors only. The authors are not responsible for any errors or omissions, or for the results obtained from the use of this information. In no event will the authors or their related partnerships or corporations thereof, be liable to you or anyone else for any decision made or action taken in reliance on the opinions provided here.

f) Explain attribution theory, and list the three determinants of attribution.

Attribution theory tries lo explain the ways we judge people differently, depending on the meaning we attribute to a given behaviour. 10 For instance, consider what you think when people smile at you. Do you think they are cooperative, exploitative, or competitive? We assign meaning to smiles and other expressions in many differe nt ways. 11

attribution theory The theory lhal when we ob5erve what seems like atypical behaviour by an individual, we attempt lo determine whether it is internally or externally caused.

Basically, the theory suggests that when we observe what seems like atypical behav- iour by an individual, we try to make sense of il. We consider whether the individual is responsible for the behaviour (the cause is internal), or whether something outside the individual caused the behaviour (the cause is extemal). /nremally caused behaviours are those an observer believes to be under the personal behavioural control of another individual. Externally caused behaviours are what we imagine the situation forced the individual to do. For example, if a student is late for class, the instructor might attribute his lateness to partying into the wee hours of the morning and then oversleeping. This would be an internal attribution. But if the instructor assumes that a traffic jam occurred on the student's regular route to school, he or she is making an external attribution.

Chapter 2 Perception, Personality, and Emotions 41

In trying lo determine whether behaviour is internally or externally caused, we rely on three rules about the behaviour: (1) distinctiveness, (2) consensus, and (3) consistency. Let's discuss each of these in turn.

Distinctiveness Distinctiveness refers to whether an individual acts similarly across a variety of situations. Is the student who arrives late for class today also lhe one who is always goofing off in team meetings and nol answering urgent emails? If the behaviour is unusual, we are likely to give il an external attribution. If it's nol, we will probably judge the behaviour to be in terna l.

Consensus If everyone who is faced with a similar situa- tion responds in the same way, we can say the behaviour shows consensu s. The tardy student's behaviour would meet th is criterion if all students who took the same route to school were also late. From an attribution perspective, if consensus is high, you would probably give an external attribution Lo the student's tardiness. But if other s tudents who took the same route made it to class on lime, you

Have you e\'er ,nisjudged a

person'? Do you kno~v \·\'h{?

would attribute lhe cause of lateness for the student in question lo an internal cause.

Consistency Finally, an observer looks for consistency in a person's actions. Does the person respond the same way over time? If a student is usually on time for class, being 10 minutes late wi ll be perceived differently from the student who is late for almost every class. The more consistent lhe behaviour, the more we are inclined to auribule it to internal causes.

Exhibit 2-2 summarizes the key elements in attribution theory. ll illustrates, for instance, how to evaluate an employee's behaviour on a new task. To do th is, you might note that employee Emma generally performs al about the same level o n other related tasks as she does on her current task (low distinctiveness). You see that other employees frequently perform differenlly- bener or worse- than Emma does on lhal current task (low consensus). Finally, if Emma's performance on this current task is

EXHIBIT 2-2 Attribution Theory

Observation

Individual behaviour --+--

Interpretation -High Distinctiveness

(Seldom) -(How often does the ........ ---1 person do this in -other situations?)

Consensus (How often do other

people do this in similar si tuations?)

Consistency (How often did the person do this in

the past?)

•

tow (Frequently)

High (Frequently}

• -low

(Seldom)

High (Frequently) --low (Seldom)

Attribution of cause

External

Internal

External

Internal

External

distinctiveness A behavioural rule that considers whether an individual acts similarly acr05S a variety of situatioos.

consensus A behavioural rule that considers whether everyone faced with a similar situalioo responds in the same way.

consistency A behaooural rule that considers whether the individual has been acting in the same WJJJ over time.

4 2 Part 1 Understanding the Workplace

fundamental attribution error The tendency to underesti· mate the influence of external factors and overestimate the influence of internal factors when making judg· ments about the behaviour of others.

self-serving bias The tendency ID< individuals to attribute their own successes to internal factors while putting the blame for failures on external factors.

selective perception People's selective interpretation of what they see based on their interests, back· ground, experience. and attitudes.

EXHIBIT 2-3 Percentage of Individuals Rating Themselves Above Average on Each Attribute

100%

80% 78%

60%

40%

20%

0% Performance

96% •

Sense of humour

84%

Abil ity to get along w ith others

Source: Based on C. Mer1<1e and M. Weber, Ttue Overconfidence-The Inability of Rational Information Processing to Account for Overconfidence (March 2009). Available at SSRN: http://ssrn.com/ abstract= 1373675.

consistent over time (high consistency), you or anyone else who is judging Emma's work is likely lo hold her primarily responsible for her task performance (internal attribution).

How Attributions Get Distorted Errors or biases distort attributions. When we judge the behaviour of other people, we tend to underestimate the influence of external factors and overestimate the influence of internal, or personal, factors. 12 This fundamental attribution error can explain why a sales manager attributes the poor performance of his or her sales agents to laziness rather than acknowledging the impact of the innova- tive product line introduced by a competitor.

We use self-serving bias when we judge ourselves, however. 13 This means that when we are successful, we are more likely lo believe il \Vas because of internal factors, such as ab ility or effort. When we fail, however, we blame external factors, such as luck. In general, people tend to believe that their own behaviour is more positive than the behaviour of those around them. Research suggests, however, that individuals tend to overestimate their own good behaviour, and underestimate the good behaviour of others. 14 Exhibit 2-3 illustrates th is point.

Selective Perception Because it's impossible for us to see everything, any characteristic that makes a person, object, or event stand out will increase the probability that it will be perceived; thus, you are more likely lo notice cars that look like your own. ll also explains why some people may be reprimanded by their manager for doing something that goes unnoticed when other employees do it. Since we cannot observe everything going on about us, \Ve engage in selective perception.

How does selectivity work as a shortcut in judging other people? Since we can- not take in all that we observe, we take in bits and pieces. But we do not choose randomly; rather, we select according to our interests, background, experience, and allitudes. Because we see what we want to see, we sometimes draw unwarranted

Chapter 2 Perception, Personality, and Emotions 43

conclusions from an ambiguous situation. Selective perception led the Law Society of British Columbia lo discriminate against lawyers who suffer from a mental illness, as Focus on Diversity shows.

Should employees be required to reveal that they have a mental illness? In July 2011, the BC Human Rights Tribunal ruled that the Law Society of British Columbia had discrimi-

nated against a lawyer with a mental d isability.15 The lawyer, Peter Mokua Gichuru, was

awarded almost $100 000 by the tribunal. Gichuru's problems started when he began applying for work as an articling student and

had to fill out a law society admission program form with the following question: "Have you

ever been treated for schizophrenia, paranoia, or a mood disorder described as a major affective illness, bipclar mood disorder, or manic depressive illness?" He answered "yes."

Gichuru had been suffering from bouts of depression for almost five years and was on antidepressants when he was faced with the law society's question. He felt that his

articles were delayed because he answered truthfully about his mental health. He also felt

that his difficulties in keeping his articling positions and finding others were a result of his answer to the question.

In making its determination, the tribunal found that the law society, while acting in good

faith, went beyond what was necessary to determine the fitness of someone to practise law. The law society changed the question related to mental health history on the admis-

sion form as a result of Gichuru's appeal. It now reads:

Based upon your personal history, your current c ircumstances, or any professional opinion or advice you have received, do you have any existing condition that is reasonably

likely to impair your ability to function as a lawyer or articled student? If the answer is "yes"

to the question above, please provide a general description of the impairment. Those who answer "yes" to this new question are followed on a case-by-case basis,

but the information is kept confidential and is not disclosed to potential employers. While Gichuru still has some concerns about the use of the information, he testified that it "is a

dramatic improvement ... and that on its face it does not discriminate between so-called

physical and mental illnesses." .................................................. .

Halo Effect When we draw a general impression of an individual on the basis of a single charac- teristic, such as intell igence, likeability, or appearance, a halo effect operates. 16 The halo effect is easy lo demonstrate. If you knew someone was, say, gregarious, what else would you infer? You probably would not say the person was introverted, right? You might assume the person was loud, happy, or quick-witted, when in fact gregarious does not include those other attribu tes. As managers, we need to be careful not lo draw inferences from small clues.

Contrast Effects There is an old saying among entertainers: "Never fo llow an act that has children or an imals in it.• Why? Audiences love chi ldren and animals so much that you will look bad in comparison.

This example demonstrates how contrast effects can distort perceptions. We don't evaluate a person in isolation. Our reaction is influenced by other people we have recently encountered.

halo effect Drav,;ng a general impression of an individual on the basis of a single characteristic.

contrast effects The concept that our reaction to one person is often influenced by other people we have recently encountered.

44 Part 1 Understanding the Workplace

stereotyping Judging someone on the basis of one's perception of the group to which that person belongs.

heuristics Judgment shortcuts in decision making.

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colonialism to help build Halluci Nation, a collective of artists and activists.

In a series of job interviews, for instance, a candidate is likely to receive a more favourable evaluation if preceded by mediocre applicants, and a less favourable evalu- ation if preceded by strong appl icants. Thus, interviewers can make distortions in any given candidate's evaluation as a result of her or his place in the interview schedule.

Stereotyping When we judge someone on the basis of our perception of the group to which he or she belongs, we are using the shortcut called stereo typing.

We rely on general izations every day because they help us make decisions quickly. They are a means of simplifying a complex world. It's less difficult to deal with an unmanageable number of s timuli if we use heuristics (judgment shortcuts in decision making) or stereotypes. For example, it does make sense to assume that Tre, the new employee from accounting, is going to know something about budgeting or that Al lie from finance will be able to help you figure out a forecasting problem. Stereotypes can be so deeply ingrained and powerful that they influence life-and-death decisions. One study showed that, controlling for a wide array of factors (such as aggravating or miti- gating circumstances), the degree to \vhich black defendants in murder trials looked "stereotypically black" essentially doubled their odds of receiving a death sentence if convicted. 17 Another study found that students tended to assign higher scores for lead- ership potential and effective leadership to whites than to minorities, supporting the stereotype of whites as better leaders. 1 S

One of the problems of stereotypes is that they are widespread and often usefu l generaliza tions, despite the fact that they may not contain a shred of truth when applied to a particular person or situation. So we have to check ourselves to make sure we are not unfairly or inaccura tely applying a stereotype in our evaluations and decisions. Stereotypes are an example of the warning, "The more useful. the more danger from misuse.•

It should be obvious by now that our perceptions, many of which are near- instan- taneous and without conscious deliberation, colour our outlook. Sometimes they have li ttle impact on anyone, but more often our perceptions greatly influence our decisions.

Chapter 2 Perception, Personality, and Emotions 45

Muslim women in Canada often experience discrimination in being hired, or how their co-workers treat them, when they wear a hijab. In some cases, co-workers of Muslim women have been surprised when

they returned to work following maternity leave. The co-workers assumed that Muslim women would be expected by their husbands to stay at home to raise children rather than work.

The first step toward increasing the effectiveness of organizational decision making is to understand the perception process on an individualized level, discussed next.

.............. • ]] RESEARCH FINDINGS: Stereotyping A variety of recent studies show that even today we believe Germans are better

• workers, Ital ians and African Americans are more loyal, Jews and Chinese are more intell igent, and Japanese and English are more courteous.19 What is surprising is that posi tive stereotypes are not always positive.

Men are commonly believed to have s tronger math abilities than women. One study shows that when this stereotype is activated before men take a math test, their performance on the test actually goes down. Another study found that the belief that white men are better at science and math than women or visible minorities caused white men to leave science, technology, engineering, and math majors. Finally, a study used basketball to illustrate the complexity of s tereotypes. Researchers provided evidence to one group of undergraduates that whites were better free-throw shooters than blacks. Another group was provided evidence that blacks were better free-throw shooters than whites. A third group was given no stereotypical information. The undergraduates in all three groups then shot free throws while observers watched. The people who performed the worst were those in the negative stereotype condition (black undergraduates who were told whites were better and white undergraduates who were told blacks were better). However, the positive s tereotype group (black undergraduates who were to ld blacks were better and white undergraduates who were told whites were better) also did not perform well. The best performance was turned in by those in the no stereotypical information group. In short, we are more likely to "choke" when we iden tify with positive stereotypes because they induce pressure to perform at the stereotypical level.

4 6 Part 1 Understanding the Workplace

self-fulfilling prophecy A concept that proposes a person will behave in ways oonsistent with how he or she is perceived by others.

Why Do Perception and Judgment Matter? People in organiza tions are always judging one another. Managers must appraise the ir employees' performances. We evaluate how much effort our co-workers are pulling into their jobs. When a new person joins a work team, the o ther members immediately •size her up.• Individuals even make judgments about people's virtues based on whether they exercise, as a study by McMaster University professor Kathleen Martin Ginis showed.20 In many cases, judgments have important consequences for the organization. A recent s tudy found that in organizations that did not seem to value innovation, employees who wanted to see change were often afra id to speak out due to fear of negative perceptions from co-workers who valued the status quo.21 Another recent study found that positive employee perceptions of an organization have a positive impact on retention, customer loyalty, and financial outcomes.22 A study noted that individuals who misperceive how well they have done on a task (positively or negatively) tend to prepare less and to perform poorly in subsequent tasks. 23

Can perception really affect

') outco1ncs .

Let's briefly look at a few of the most obvious applications of judgment shortcuts in the workplace: employment interviews, performance expectations, and performance evaluations.

Employment Interviews It's fa ir to say that few people are hired without undergoing an interview. But interview- ers make perceptual judgments that are often inaccurate24 and draw early impressions that quickly become entrenched. Research shows we form impressions of others within a tenth of a second based on our first glance.25 Most interviewers' decisions change very little after the first four or five minutes of an interview. As a result, information that comes out early in the intervie\v carries greater weight than information that comes out later, and a "good appl icant" is probably characterized more by the absence of unfavour- able characteris tics than by the presence of favourable ones. Our individual intuition about a job candidate is not reliable in predicting job performance, so collecting input from multiple independent evaluators can be predictive.26

Performance Expectations People allempt to valida te their perceptions of rea lity even when they are faulty.27

The terms self-fulfilling prophecy and Pygmalion. effect describe how an individual's behaviour is determined by others' expectations. If a manager expects big things from her people, they are not likely to let her down. Similarly, if she expects only minimal performance, they will likely meet those low expectations. Expectations become real- ity. The self-fulfilling prophecy has been found to affect the performance of students, soldiers, and even accountants.28

Performance Evaluations Performance evaluations very much depend on the perceptual process.29 An employee's future is closely tied to the appraisal- promotion, pay raises, and continuation of employ- ment are among the most obvious outcomes. Although the appraisal can be objective (for example, a salesperson is appra ised on how many dollars of sales are generated in his territory), many jobs are evaluated subjectively. Subjective evaluations, although often necessary, are problematic because all the errors we have discussed thus far- selective perception, contrast effects, halo effect, and so on- affect them. Ironically, sometimes performance ra tings say as much about the evaluator as they do about the employee!

As you can see, perception plays a large ro le in how people are evaluated. Personal- ity, which we review next, is ano ther major factor affecting how people relate to and evalua te one another in the workplace.

Chapter 2 Perception, Personality, and Emotions 47

Personality By her own acknowledgment, Michele Romanow is a risk taker.JO She said that Buytopia was

late to launch a daily deal site. "We were a year behind our major competitors. We had competi-

tors that had already raised $60 million." That did not stop her from trying though. Romanow's

philosophy about launching businesses is that "You can't be scared when it isn't perfect. You've

just got to launch it. You'll figure it out. "

One of Romanow's strong personality traits is that she is a high self-monitor. She thinks

that a dream job is about having control: "Control over the types of problems you take on,

and your approach to those problems. Control over the cu lture you bu ild." In other words,

Romanow is a proactive person. She does not wait for things to happen, she makes them

happen.

While working at Buytopia, Roma now and her partners developed a mobile couponing app

called SnapSaves, that allowed consumers to get rebates from manufacturers by emailing

their receipts. Roma now realized the company needed investors in order to grow. She and her

partners ended up selling the app to Groupon, and it was renamed Groupon Snap. As part of

the acquisition, she promised that she would work with Groupon for a year and a half at its

headquarters in the United States. As soon as that time was up, she moved back to Canada,

to work on her next start-up.

Romanow can take these risks because she is open to experiences, one of the Big Five

personality traits that we discuss below. How do one's personality attributes influence OB?

Understanding the impact of individual personal ities on OB is important. Why are some people quiet and passive, while others are loud and aggressive? Are certain personality types better adapted to certain jobs? Before we can answer these questions, we need to address a more basic one: What is personal ity?

What Is Personality? When we speak of someone's personality, we use many adjectives to describe how they act and seem to th ink; in fact, participants in a recent study used 624 distinct adjectives to describe people they knew. 31 As organizational behaviourists, however, we organize personality characteristics by overall traits, describing the growth and development of a person's personality.

Defining Personality For our purposes, we define personality as the sum of the ways in which an individual reacts to and interacts with others. We most often describe personal ity in terms of mea- surable traits that a person exhibits.

Measuring Personality Personality assessments have been increasingly used in diverse organizational set- tings. In fact, many large companies use them,32 including Xerox, McDonald's, and Lowe's,33 and schools such as DePaul University have begun to use personality assessments in their ad missions process.34 A 2017 study by professors from Western University, University of Guelph, University o f PEI, and University o f York, along wi th colleagues from elsewhere, suggested that based on their research, medical schools should start using personality tests for admiss ion decisions. Personal ity seemed to predict clinical performance more accurately that either grades or medical exam scores.35

The most common means of measuring personal ity is th rough self-report surveys, with which individuals evaluate themselves on a series of factors, such as "I worry a lot about the future.• In general, when people know that their personal ity scores are going

8 Describe personality, the way it is measured, and the factors that shape it.

personality The sum total of ways in which an in<ividual reacts to and interacts with others.

4 8 Part 1 Understanding the Workplace

personality traits Enduring characteristics !hat describe an indivirual's behaviour.

to be used for hiring decisions, they rate themselves as about half a standard deviation more conscientious and emotionally stable than if they are taking the test just to learn more about themselves.36 Another problem is accuracy: A candidate who is in a bad mood when taking the survey may have inaccurate scores.

Observer-rating surveys provide an independent assessment of personality. Here, a co-worker or another observer does the rating. Although the results of self-reports and observer-rating surveys are strongly correlated, research suggests that observer ratings predict job success better than self-ratings alone.37 However, each can tell us something unique about an individual's behaviour in the workplace. A combination of self-reports and observer-reports predicts performance better than any one type of information. The implication is clear: Use both observer ratings and self-report ratings of personality when making important employment decisions.

Personality Determinants An early debate in personality research centred on whether an individual's personality is predetermined at birth or is the result of the individual's environment. Clearly, there is no simple answer. Personali ty appears to be a result of both; however, research tends to support the importance of heredity over environment.

Heredity refers to those factors that were determined at conception. Physical stature, fac ial allractiveness, gender, temperament, muscle composition and reflexes, energy level, and b iological rhythms are either com- pletely or substantially influenced by your biological parents' biological, physiological, and inherent psycho- logical makeup. The heredity approach argues that the ultimate explanation of an individual's personality is a person's genes.

Are people born ,,,,ith their

personalities·!

This is not to suggest that personality never changes. People's scores on depend- ability tend to increase over time, as when young adults start families and establish careers. However, s trong individual differences in dependabil ity remain; everyone tends to change by about the same amount, so their rank order stays roughly the same. Furthermore, personality is more changeable in adolescence and more stable among adults.38

Personality Traits The early work on personality tried to identify and label enduring characteristics that describe an individual's behaviour, including shy, aggressive, submissive, lazy, ambi- tious, Joyal, and timid. Those characteristics, when they are exhibited in a large num- ber of situations and are relatively enduring, we call personality traits.39 The more consistent the characteris tic and the more frequently it occurs in diverse situations, the more important that trail is in describing the individua l.

Throughout history, people have sought to understand what makes individu- als behave in myriad ways. Many of our behaviours stem from our personalities, so understanding the components of personality helps us predict behaviour. Important theoretical frameworks and assessment tools help us categorize and study the dimen- sions of personality.

The most widely used and best known personality frameworks are the Myers- Briggs Type Indicator (MBTI) and the Big Five Personality Model. Both describe a person's total personality through exploration of the face ts of personality. Other frameworks, such as the Dark Triad, explain certain aspects, but not the total, of an individual's personal ity. We discuss each below, but let's begin with the dominant frameworks.

Chapter 2 Perception, Personality, and Emotions 49

The Myers-Briggs Type Indicator The Myers-Briggs Type Indicator (MBTI) is the most widely used personal ity-assessment instrument in the world. 40 It's a 100-question personality lest that asks people how lhey usually feel or act in particular s ituations. On the basis of their answers, individuals are classified as ex1raverted or introverted (E or I), sensing or intuitive (Sor N), thinking or feeling (Tor F), and judging or perceiving (J or P). These terms are defined as follows:

• Extraverted/introverted. Extraverted individuals are outgoing, sociab le, and assertive. Introverts are quiet and shy. E/1 measures where we direct our energy when deal ing with people and th ings.

• Sensing/in111itive. Sensing types are practical and prefer rou tine and order. They focus on de tails. lntu itives rely on unconscious processes and look at the •big p icture." This dimension looks at how we process information.

• Thinking/feeling. Thinking types use reason and logic to handle problems. Feeling types rely on lhei r personal values and emotions.

• ]11dging/perceiving. Judging types wanl control and prefer their world to be ordered and structured. Perceiving types are llexible and spontaneous.

These classifications together describe 16 personali ty types by identifying one tra it from each of the four pairs. To illustrate, let's look at three examples:

• INT]s are visionaries. They usually have original minds and great drive. They are skeptical, critical, independent, determined, and often stubborn.

• EST]s are organizer.s. They are realistic, logical, analytical, decisive, and have a natural head for business or mechanics. They like to organize and run activities.

• ENTPs are concepu1alizers. They are innovative, individualistic, versatile, and attracted Lo entrepreneurial ideas. They Lend to be resourceful in solving challenging problems, but may neglect routine assignments.

The MBTI is used in a variety of organizational settings. Evidence is mixed as to whether the MBTI is a valid measure of personality; however, much of the evidence is aga inst it.41

One problem with the MBTI is that the model forces a person into either one type or another (that is, you are either introverted or extraverted). There is no in-between. Another problem is with the reliability of the measure: When people retake the assess- ment, they often receive different resu lts. An additional problem is in lhe difficulty of interpretation. There are levels of importance for each of the MBTI facets, and separate meanings for certain combinations of facets, all of which require trained interpretation tha t can leave room for error. Finally, results from the MBTI lend lo be unrelated lo job performance. The MBTI can thus be a valuable tool for increasing self-awareness and providing career guidance. Bul because results tend lo be unrelated to job performance, managers should consider using the Big Five Personality Model, discussed next, as the personality selection Lest for job candidates.

The Big Five Personality Model The MBTI may lack va lid supporting evidence, but an impressive body of research supports the Big Five Pers onality Model. The model proposes that five basic personality dimensions underlie all others and encompass most of the significant variation in human personality.42 Test scores of these tra its do a very good job of

C, Describe the Myers- Briggs Type Indicator personality framework and its strengths and weaknesses.

0 Identify the key traits in the Big Five Personality Model.

Myers-Briggs Type Indicator (MBTI) A persooalily lest !hat laps four characteristics and classifies people inlo 1 of 16 personalilytypes.

Big Five Personality Model A personality-assessment model thal laps five basic dimensions.

50 Part 1 Understanding the Workplace

0 Demonstrate how the Big Five personality traits predict behaviour at work.

conscientiousness A personal- ity fact0< that describes the degree to which a person is respon- sible, dependable, persistent, and achievement -Ofiented.

emotional stability A personal- ity dimension that characterizes someone as calm. self-confident, and secure (positive) vs. nervous, depressed, and insecure (negative).

extraversion A personality factor that describes the degree to which a person is sociable, talkative, and assertive.

openness to experience A personality factor that describes the degree to which a person is imagina- tive, artistically sensitive, and curious.

agreeableness A personality factor that describes the degree to which a person is good-natured. cooperative, and trusting.

predicting how people behave in a variety of real-life situations,4 3 and remain rela- tively stable for an individual over time, with some daily variations.44 The Big Five personality tra its are:

• Conscientiousness. The conscientiousness dimension is a measure of rel i- ability. A highly conscientious person is responsible, organized, dependable, and persistent. Those who score low on this dimension are easily distracted, disorganized, and unreliable.

• Emocional st11bility. The emotional stability dimension taps a person's ability to withstand stress. People with emotional stability tend to be calm, self-confident, and secure. High scorers are more likely to be positive and optimistic and experience fewer negative emotions; they are generally happier than low scorers. Emotional stability is sometimes discussed as its converse, neuroticism. Low scorers (those with high neuroticism) are hypeivigilant and vulnerable to the physical and psychological effects of stress. Those with high neuroticism tend to be neivous, anxious, depressed, and insecure.

• Extraversion. The extraversion dimension captures our comfort level with relationships. Extraverts tend to be gregarious, assertive, and sociable. They are generally happier and are often ambi tious.45 They experience more posi- tive emotions than do introverts, and they more freely express these feelings. On the other hand, introverts (low extraversion) tend to be more thoughtful, reseived, timid, and quiet. Read more abou t introverts and extraverts in Case Incident- The Power of Quiel on pages 75- 76.

• Openness to experience. The openness to experience dimension addresses the range of interests and fascination with novelty. Open people are creative, curious, and artis tically sensitive. Those at the low end of the category are conventional and find comfort in the fam iliar.

• Agreeableness. The agreeableness dimension refers to an individual's propensity to defer to others. Agreeable people are cooperative, warm, and trusting. You might expect agreeable people to be happier than disagreeable people. They are, but only slightly. When people choose organizational team members, agreeable individuals are usually their first choice. In contrast, peo- ple who score low on agreeableness are cold and antagonistic.

Researchers at the University of Toronto have recently created a "fake proof" per- sonality test to measure the Big Five personal ity tra its.46 Professor Jordan Peterson, one of the researchers, noted that it is common for people to try to "make themselves look better than they actually are on these questionnaires .. .. This sort of faking can distort the predictive validity of these tests, with significant negative economic consequences. We wanted to develop a measure that could predict real-world performance even in the absence of completely honest responding."4 7

Exhibit 2-4 shows the characteristics for the high and low dimensions of each Big Five personality trait.

[[ ]] RESEARCH FINDINGS: The Big Five There are many relationships between the Big Five personality dimen- sions and job performance,48 and we are learning more abou t them every

day. Let's explore one trail at a time, beginning with the strongest predictor of job performance- conscientiousness.

Conscientiousness As researchers recently stated, •Personal attr ibutes related to conscientiousness and agreeableness are important for success across many jobs,

EXHIBIT 2-4 Big Five Personality Traits

Low

Reserved Timid Quiet

Cold Disagreeable Antagonistic

Easily distracted Disorganized Unrel iable

Hostile An.xious Depressed lr,secure

Unimaginative Inflexible Literal-minded Dull

Extraversion

Agreeableness

Conscientiousness

Emotional Stability

Openness to Experience

Chapter 2 Perception, Personality, and Emotions 5 1

High

Gregarious Assertive Sociable

Cooperative Warm Empathetic Trusting

Responsible Organized Dependable Persistent

Calm Self-<0nfident Secure

Creative Flexible Curious Artistic

spanning across low to high levels of job complexity, training, and experience."49

Employees who are more conscientious provide better service. 50 Employees who score h igher in conscientiousness develop higher levels of job knowledge, probably because highly conscientious people learn more ( conscientiousness may be related to grade point average).51 Higher levels of job knowledge then contribute to higher levels of job performance.52 Conscientious people are also more able to maintain their job performance \vhen faced with abusive supervisio n, according to a recent study in India. 53

Like any trai l, conscientiousness has pitfalls. Highly conscientious individuals can prioritize work over family, resulting in more confl ict between their work and fam- ily roles (termed work- family conjlici).54 They may also become too focused on their own work lo help o thers in the organization,55 and they don' t adapt well lo changing contexts. Furthermore, conscientious people may have trouble learning complex ski lls early in the tra ining process because their focus is on performing well rather than on learning. Finally, they are often less creative, especially artistically.56

The Big Five have also been found lo be related to characteristics needed for specific jobs. This is illus trated in Exhibit 2-5.

Although conscientiousness is the trait most consistently related to job performance, the other Big Five personal ity traits are also related lo aspect~ of performance and have other implications for work and for life. Exhibit 2-6 summarizes the discussion.

Emotional Stability Of the Big Five personality traits, emotional stability is most strongly related to life satisfaction, job satisfaction, and low s tress levels. People with high emo- tional stability can adapt lo unexpected or changing demands in the workplace.57 Al the other end of the spectrum, neurotic individuals, who may be unable to cope with these

52 Part 1 Understanding the Workplace

EXHIBIT 2-5 Jobs in Which Certain Big Five Personality Traits Are More Relevant

Detail Orientation Required

Social Skills Required

Competitive Work

Innovation Required

Dealing w ith Angry People

Time Pressure (Deadlines)

Jobs scoring high (the traits listed below should predict behaviour in these jobs)

Air traffic controller

Accountant Legal secretary

Clergy

Therapist Concierge

Coach/scout Financial manager Sales representative

Actor Correctional officer

Systems analyst Telemarketer Advertising writer Flight attendant

News analyst

Editor Airline pilot

Jobs that score high make these traits more relevant to predicting behaviour

Conscientiousness (+) Extraversion (+)

Agreeableness ( +)

Extraversion (+)

Agreeableness (-)

Openness(+) Extraversion ( +)

Agreeableness(+) Neuroticism (-)

Conscientiousness(+)

Neuroticism (-)

Note: A plus{+) sign means individuals who soore high on this trait should do better in this Job. A minus{- ) sign means Individuals who score low on this trait should do better in this job.

demands, may experience burnout.58These people also tend to experience work-family conflict, which can affect work outcomes.59

Extraversion Extraverts perform better in jobs that require significant interpersonal interaction. Extraverts are socially dominant, •take charge" people, who are usually more assertive than introverts.60 Extraversion is a relatively strong predictor of leader- ship emergence in groups. Some negatives are that extraverts are more impulsive than introverts; they are more likely lo be absent from work and may be more likely than introverts to lie during job inteiviews. 61

EXHIBIT 2-6 How the Big Five Personality Traits Influence OB

BIG FIVE TRAIT

Emotional stability

Exttaversion

Openness

Agreeableness

Conscientiousness

WHY IS IT RELEVANT?

• Less negative thinking and fewer negative emotions

• Less hyper vigilant

• Better interpersonal skills

- - · • Greater social dominance • More emotionally expressive

• Increased learning • More creative • More flexible and autonomous

• Better liked ,..__..,_1 • More compliant and

conforming

• Greater effort and persistence • More drive and discipline • Better organized and planning

WHAT DOES IT AFFECT?

• Higher job and life satisfaction • Lower stress levels

• Higher performance•

--· • Enhanced leadership • Higher job and life satisfaction

• Training performance

- - · • Enhanced leadership • More adaptable 10 change

• Higher performance• i-- l • Lower levels of deviant

behaviour

• Higher performance • Enhanced leadership • Greater longevity

·1n Jobs requiring significant teamwork or frequent interpersonal interactions.

Chapter 2 Perception, Personality, and Emotions 53

It's unusual for one person to be the CEO of a company and yet another person be the public face of the organization. But that is how ~ works for Ottawa-based Shopify's CEO Tobias Lutke and COO Harley Finkelstein (shown here). This arrangement works for the two because Lutke is an introvert, while Finkelstein is an extravert. Finkelstein says the two men play to their individual strengths, which makes for

a stronger company.

Openness to Experience Open people are more likely to be effective leaders- and more comfortable with ambiguity and change. They cope beuer with organizational change and are more adaptable. While openness is not related lo initial performance on a job, individuals higher in openness are less susceptible lo a decline in perfor- mance over a longer time period.62 Open people also experience less work- family conflict. 63

Agreeableness Agreeable indiv iduals are beuer liked than disagreeable people, which explains why they tend lo do beuer in interpersonally oriented jobs such as customer service. They are also more compliant and ru le abid ing, less likely to get into accidents, and more satisfied in their jobs. They also contribute to organizational performance by engaging in organizational citizenship behaviour (OCB).64 Disagree- able people, on the other hand, are more likely to engage in counterproductive work behaviours ( also referred to as CWBs ), as are people low in conscientiousness. 65 Low agreeableness also predicts involvement in work accidents. 66 Lastly, agreeableness is associated with lower levels of career success ( especially earnings), perhaps because highly agreeable people consider themselves Jess marketable and are less willing to assert themselves. 67

Research indicates the Big Five tra its have the most verifiable links to important organizational outcomes, but they are not the only traits a person exhibits, nor the only ones with OB implications. Let's discuss some other traits, known collectively as the Dark Triad.

54 Part 1 Understanding the Workplace

Dark Triad A group of negative personality traits consisting of Machiavellianism, narcissism, and psychopathy.

Machiavellianism The degree to which an individual is pragmatic, maintains emotional distance, and believes that ends can justify means.

narcissism The tendency to be arrogant, have a grandiose sense of sett -importance, require excessive admiration, and have a sense of entitlement.

The Dark Triad With the exception of neuroticism, the Big Five personality traits are what we call socially desirable, meaning that we would be glad to score high on them. Researchers have found three other socially undesirable traits, which we all have in varying degrees, are also relevant to organizational behaviour: Machiavellianism, narcissism, and psy-

chopathy. Owing to their negative nature, researchers have labelled these three traits the Dark Triad - though they do not a lways occur together.68 See Case Incident- Tall Poppy Syndrome on page 76 for a discussion of how negative tra its can be manifested in the workplace.

The Dark Triad may sound sinister, but these traits are not cl inical pathologies hindering everyday functioning. They m ight be expressed particularly strongly when an individual is under stress and unable to moderate any inappropriate responses. Sus- tained high levels of dark personality tra its can cause individuals to dera il their careers and personal lives.69

Machiavellianism Hao is a young bank manager in Shanghai. He has received three promotions in the past four years and makes no apologies for the aggressive tactics he has used. "My name means clever, and that's what I am- I do whatever I have to do to get ahead,• he says. Hao would be termed Machiavell ian.

The personality characteristic of Machiavellian ism (often abbreviated to Mach) is named after Niccolo Machiavelli, who wrote in the sixteenth century on how to

gain and use power. An individual h igh in Machiavell ianism is pragmatic, maintains emotional distance, and believes that ends can justify means. •1f it works, use it" is consistent with a high-Mach perspective. High Machs manipulate more, win more,

are persuaded less by others but persuade others more than do low Machs. 70 They are more likely to act aggressively and engage in other counterproductive work behaviours as well . Surprisingly, Machiavellianism does not significantly predict overall job per- formance.71 High-Mach employees, by manipulating others to their advantage, win in the short term at a job, but they lose those gains in the long term because they are not well-liked.

Machiavell ianism tendencies may have ethical implications. One study showed that h igh-Mach job seekers were not positively affected by knowing that a potential employer engaged in a h igh level of corporate social responsibility (CSR),72 suggesting that h igh- Mach people may care less about sustainability issues. Another 2012 study found tha t Machs' eth ical leadership behaviours were less likely to translate into followers' work engagement because followers "see through• these behaviours and real ize it is a case

of surface acting.73

Narcissism Sabrina l ikes to be the cent.re of attention. She often looks at herself in the m irror, has

extravagant dreams abou t her fu ture, and considers herself a person of many talents. Sabrina is a narciss ist. The trail is named for the Greek myth of Narcissus, a youth so va in and proud he fell in love with his own image. In psychology, narciss ism describes a person who has a grandiose sense of self-importance, requires excessive admiration, and is arrogant. Narcissists often have fantasies of grand success, a ten- dency to exploit situations and people, a sense of entitlement, and a lack of empa- thy.74 However, narcissis ts can be hypersens itive and fragile people.75 They also may experience more anger.76

Whi le narcissism seems to have little relationship to job effectiveness or OCB,77 it is one of the largest predictors of increased counterproductive work behaviour in indi- vidualistic cultures- but not in collectivist cultures that d iscourage self-promotion.78

Narcissists commonly think they are overqualified for their positions. 79 When they

Chapter 2 Perception, Personality, and Emotions 5 5

receive feedback about lheir performance, lhey often lune oul information lhat conflicts wilh lheir positive self-perception, but lhey will work harder if rewards are offered.80

A recent study found lhat the easiest way to identify a narcissist is lo ask them. The researchers used lhe following question, with lhe note, lo ask people whether they

were narcissists:

To what extent do you agree with lh is statement "I am a narcissist• (Nole: The word "narcissist" means egotistical, self-focused, and vain.) Participants rated themselves on a scale of I (not very true of me) lo 7 (very true of me).

One of the study's authors noted that people who respond positively probably are more narcissistic than those who do no t. •People who are narcissists are almost proud of lhe fact,• said Brad Bushman.at

On the bright s ide, narcissists may be more charismatic lhan others. 82 They also might be found in business more often than in other fields (see OB Poll). They are more likely lo be chosen for leadership positions, and medium ratings of narcissism (neither extremely high nor extremely low) are positively correlated with leadership effectiveness. 83 Some evidence suggests that narcissists are more adaptable and make better business decisions than others when lhe issue is complex.84 Furthermore, a study of Norwegian bank employees found lhose scoring high on narcissism enjoyed their work more.85

Special auenlion has been paid to narcissistic CEOs who make more acquisitions, pay higher premiums for lhose acquisitions, respond less clearly lo objective measures of performance, and respond lo media praise by making even more acquisilions.86

Research using data compiled over 100 years has shown that narcissistic CEOs of base- ball organizations generate higher levels of manager turnover, a l though members of external organizations see them as more influenlial.87

Narcissism and ils effects are not confined lo CEOs or celebrities. Like the effects of Machiavell ianism, those of narcissism vary by context, bul are evident in all areas of life.

Does business school reinforce narcissism in the classroom? The results of a study lhal compared the level of narcissism in Millennial business and psychology s tudents appear in Exhibit 2-7.

EXHIBIT 2-7 Does Business School Make You Narcissistic?

Average levels of narcissism by university major and gender

20~~~~~~~~~~~~~~~~~~~~~~~-

Men Women

Business

Men Women

Psychology

Source: Based on J. W. Westerman, J . Z. Bergman, S. M. Bergman, and J . P. Daly, "Are Universities Creating Millennial Narcissistic Employees? An Empirical Examination of Narcissism in Business Students and tts Implications," Journal of Management Education 36 (2012), pp. 5-32.

56 Part 1 Understanding the Workplace

psychopathy The tendency for a lack of concern fOf others and a lack of guilt °' remorse when one's actions cause harm.

core self-evaluation Bottom-line conclusions individuals have about their capabilijies, competence, and worth as a person.

Psychopathy Psychopathy is part of the Dark Triad, but in OB, it does no t connote cl inical mental illness. In the OB context, psychopathy is defined as a lack of concern for others and a Jack of guilt or remorse when actions cause harm.SS Measures of psychopathy attempt to assess the motivation to comply with social norms, impulsivity, will ing- ness to use deceit to obtain desired ends, and d isregard, that is, lack of empathetic concern, for others.

The literature is not consistent about whether psychopathy is important to work behaviour. One review found Jillie correlation between measures of psychopathy and job performance or counterproductive work behaviours.89 Another s tudy found tha t antisocial personality, which is closely related to psychopathy, was positively related to advancement in the organization bul unrelated to other aspects of career success and effectiveness.90 Sti ll other recent research suggests that psychopathy is related to the use of hard influence tactics (threats, manipulation) and bullying work behaviour (physical or verbal threatening).9 1 The cunning displayed by people \vho score high on psychopathy may thus help them gain power in an organization but keep them from using that power toward healthy ends for themselves or their organizations.

Other Traits The Dark Triad is a helpful framework for studying the three dominant dark-side trails in current personality research, and researchers are exploring other traits as well. One emerging framework incorporates five additional aberrant compound tra its based on the Big Five. First, antisocial people are indifferent and callous toward others. They use their extraversion lo charm people, bul they may be prone 10 violent counterproductive work behaviours and risky decision making. Second, borderline people have low self. esteem and high uncertainty. They are unpredictable in their interactions al work, are inefficient, and may have low job satisfaction. Their low self-esteem can lead to cl inical depression.92 Third, schizctypal individuals are eccentric and disorganized. In the work- place, they can be highly creative, although they are susceptible to work stress. Fourth, obsessive-compulsive people are perfectionists and can be stubborn, yet they attend lo deta ils, carry a strong work ethic, and may be motivated by achievement. Fifth, avoidant individuals feel inadequate and hale criticism. They can function only in environments requiring little inleraction.93

Personality traits have both positive and negative aspects. The degree of each trait- the Big Five, the Dark Triad, and others- in a person, and the combination of traits, mauer a great deal to organizational outcomes. ll would be easy to make quick man- agement decisions based on our observations, but il is important lo keep discussions on personality in perspective and to consider other theories.

Other Personality Attributes That Influence OB As we've discussed, s tudies of trail~ have much lo offer to the field of OB. Now we will look at other attributes that are powerful predictors of behaviour in organizations: core self-evaluation, self-monitoring, and proactive personality.

Core Self-Evaluation Core self-evaluations (CSEs) are bouom-line conclusions individuals have about their capabilities, competence, and worth as a person. People who have positive CSEs like themselves and see themselves as effective, capable, and in control of their environ- ment. Those with negative CSEs tend lo dislike themselves, question their capabilities, and view themselves as powerless over their environment.94

People with positive CSEs perform bener than others because they set more ambi- tious goals, are more commiued to their goals, and persist longer at anempting to

Chapter 2 Perception, Personality, and Emotions 57

Blake Mycoskie, founder of TOMS Shoes, is confident, capable, and effective. His high core se~-evaluations enabled him to realize his dream of a company that uses profits to give shoes to children in need.

reach these goals. People who have high CS Es provide better customer seNice, are more popular co-workers, and may have careers tha t begin on a better footing and ascend more rapid ly over time.95 They perform especially well if they feel their work provides meaning and is helpful to others.96 Therefore, people with high CSEs may thrive in organizations with a high level of CSR.

Self-Monitoring Zoe is ahvays in trouble at work. Al though she is competent, hard-working, and pro- ductive, she receives average ratings in performance reviews, and seems to have made a career out of irritating her bosses. Zoe's problem is that she is pol itically inept and unable to adjust her behaviour to fit changing situations. As she said, •1'm true to myself. I don't remake myself to please others." Zoe is a low self-moni tor.

Self-monitoring refers to an individual's ability to adjust his or her behaviour to external, situational factors.97 High self-monitors show considerable adaptability in adjusting their behaviour to external situational factors. They are highly sensitive to external cues and can behave differently in varying situations, sometimes presenting striking contradictions between their public personae and their private selves. low self- moni tors like Zoe cannot disguise themselves in the same way. They tend to display their true dispositions and attitudes in every si tuation. High behavioural consistency exists between who they are and what they do.

Research suggests that high self-monitors tend to pay closer attention to the behav- iour of others and are more capable of conforming than are low self-monitors.98 High self-monitor employees show less commitment to their organizations, but receive better performance ratings and are more likely to emerge as leaders. 99 High self-monitoring managers tend to be more mobile in their careers and receive more promotions (both in ternal and cross-organizational) and are more likely to occupy central positions in an organization. 100

According to research, we can accurately judge others' personalities a few seconds after meeting them, as Focus on Research shows.

self-monitoring A personality trait that measures an indil/idual's ability to adjust behal/iour to external. situational factors.

58 Part 1 Understanding the Workplace

proactive personality A person who identifies opportunijies. shows initiative, takes action, and perseveres until meaningful change occurs.

FOCUS ~NESEARCH First Impressions Count

How accurate are first impressions of people's personalit ies? Research indicates that individuals can accurately appraise others' personalities only a few seconds after first

meeting them, or sometimes even from a photo.101 This "zero acquaintance" approach 102

shows that regardless of the way in which people first meet someone, whether in person or online, their first judgments about the other's personality have validity. In one study, for

example, individuals were asked to introduce themselves, on average, in 7.4 seconds.

Observers' ratings of those individuals' extraversion were significantly correlated w ith the individuals' self-reported extraversion. Other research suggests personalities can be

surmised from online profiles at zero acquaintance as wen.100 One study even found that

participants were able to determine the personality traits of individuals at the ends of the trait spectrum from viewing only photos.

Some traits, such as extraversion, are easier to perceive than others upon initial

acquaintance, but less obvious traits like self-esteem are also often judged fairly accurately by others. Even being forced to make intuitive, quick judgments rather than deliberate

evaluations does not seem to undermine the accuracy of the appraisals.

Situations make a d ifference in the accuracy of the judgments for some personality traits. For example, although neuroticism is perhaps the most difficult trait to detect accu-

rately, a recent study found neuroticism could be judged much more accurately when the situation made the individual react nervously. This makes sense when you consider

that some situations activate or draw out a trait much more readily than others. Almost

everybody looks calm when they are about to fall asleep! The moderate accuracy of "thin slices" helps explain the moderate validity of employment

interviews. Specifically, research shows that interviewers make up their minds about can-

d idates within two minutes of first meeting them. While this is hardly an ideal way to make important employment decisions, the research on personality shows that these judgments

do have some level of validity. It is important to keep in mind, however, that though we can

ascertain people's personalities quickly, we should still keep an open mind and suspend

judgment. There is always more to people than first meets the eye. • .. . .. . .. ... ... ... .•

Proactive Personality Did you ever notice that some people actively take the initiative to improve their cur- rent circumstances or create new ones? These people have a proactive personality. w4

People with a proactive personal ity identify opportunities, show initiative, take action, and persevere until meaningful change occurs compared lo others who generally react lo situations. Proactives have many behaviours that organizations desire. They have higher levels of job performance 105 and do no t need much oversight. JOG They are receptive to changes in job demands and thrive when they can informally tailor their jobs lo their strengths. Proactive individuals often achieve career success. 107

Proactive personality may be important for work teams. One study of 95 R & D teams in 33 Chinese companies revealed that teams with high-average levels of proac- tive personal ity were more innovative. 108 Proactive ind ividuals are also more likely to exchange information with others in a team, which bui lds trust relationships. w9 Like other traits, proactive personality is affected by the context. One study of bank branch teams in China found that if a team's leader was not proactive, the benefits of the team's proactivity became dormant or, worse, was suppressed by the leader. 110 In terms of pit- falls, one study of231 Flemish unemployed individuals found that proactive individuals abandoned their job searches sooner. It may be that proactivity includes stepping back in the face of failure. 111

Chapter 2 Perception, Personality, and Emotions 59

Situation Strength Theory Imagine you are in a meeting with your department. How likely are you to walk out, shout at someone, or turn your back on everyone? Probably highly unlikely. Now imagine working from home. You might work in your pyjamas, listen to loud music, or take a catnap.

Situation strength theory proposes that the way personality translates into behaviour depends on the strength of the situation. By situation strength, we mean the degree to which norms, cues, or standards dicta te appropriate behaviour. Strong situa- tions show us what the right behaviour is, pressure us to exhibit it, and discourage the wrong behaviour. In weak situations, conversely, "anything goes,• and thus we are freer to express our personality in behaviour. Thus, personality tra its better predict behaviour in weak si tuations than in strong ones.

Researchers have analyzed situation strength in organizations in terms of four elements: 112

1. Clarity, or the degree to which cues about work duties and responsibilities are available and clear. Jobs high in clarity produce strong situations because individuals can readily determine what to do. For example, the job of jan itor probably provides higher clarity about each task than the job of nanny.

2. Consistency, or the extent to which cues regarding work duties and responsi- bilities are compatible with one another. Jobs with high consistency represent strong situations because all the cues point toward the same desired behaviour. The job of acute care nurse, for example, probably has higher consistency than the job of manager.

3 . Constraints, or the extent to which individuals' freedom to decide or act is lim- ited by forces ouL~ide their control. Jobs wi th many constraints represent strong situations because an individual has limi ted individual discretion. Bank exam- iner, for example, is probably a job with stronger constraints than forest ranger.

4. Consequences, or the degree to which decisions or actions have important implications for the organization or its members, clients, suppliers, and so on. Jobs with important consequences represent strong situations because the envi- ronment is probably heavily structured to guard against mistakes. A surgeon's job, for example, has higher consequences than a foreign-language teacher's.

Some researchers have speculated organizations are, by definition, strong situa- tions because they impose rules, norms, and standards that govern behaviour. These constraints are usually appropriate. For example, we would not want an employee to feel free to engage in sexual harassment, follow questionable accounting procedures, or come to work only when the mood strikes.

Beyond the basics, though, it is not always desirable for organizations to create strong situations for thei r employees for a number of reasons. First, the elements of situation strength are often determined by organization rules and guidelines, which adds some objectivity to them. However, the perception of these ru les influences how the person will respond to the situation's strength. For instance, a person who is usu- ally self-directed may view step-by-step instructions (high clarity) for a simple task as a lack of faith in his ability. Another person who is a rule-follower might apprecia te the detailed instructions. Their responses ( and work attitudes) will reflect their perception of the situation.113

Second, jobs with myriad ru les and tightly controlled processes can be dull or demotivating. Imagine that all work was executed with an assembly-line approach. Some people may prefer the routine, but many prefer having some variety and free- dom. Third, strong situations might suppress the creativity, ini tiative, and discretion prized by some organizational cultures. One recent study, for example, found that in

situation strength theory A 1heory indicating that the way personality translates into behaviour depends oo the streng1h of the situatioo.

60 Part 1 Understanding the Workplace

f) Differentiate between emotions and moods.

affect A broad range of feelings 1hat people experience.

emotions Intense feelings that are directed at someone or some1hing.

moods Feelings that tend to be less intense than emotions and that lack a contextual stimulus.

weak organizational situations, employees were more likely to behave proactively in accordance with their values. 114 Finally, work is increasingly complex and interrelated globally. Creating strong rules to govern diverse systems might be no t only difficult but also unwise. In sum, managers need to recognize the role of situation strength in the workplace and find the appropriate balance.

Emotions Each of us has a range of personality characteristics, but we also bring wi th us a range of emotions. Given the obvious role that emotions play in our everyday life, it might surprise you to learn that, unti l very recently, the topic of emotions was given little or no attention within the field of 08. 115 Why7 Generally, because emotions in the workplace were historically thought to be detrimental to performance. Although managers knew emotions were an inseparable part of everyday life, they tried to create organizations that were emotion-free. Researchers tended to focus on strong negative emotions- especially anger- that interfered with an employee's abi lity to work effectively. (Point/Cou111erpoin1 on page 73 considers whether organizations should encourage the expression of nega- tive emotions at work.)

Thankfully, this type of thinking is changing. Certainly some emotions, particularly when exhibited at the wrong time, can reduce employee performance. Other emotions are neutral, and some are constructive. Employees do bring their emotions to work every day, so no study of OB would be complete without considering their role in workplace behaviour.

What Are Emotions and Moods? Let's look at three terms that are closely in tertwined: affect, emotions, and moods. Affect is a generic term that covers a broad range of feelings people experience, including both emotions and moods.116 Emotions are intense feelings that are directed at someone or something. 117 Moods are less intense feelings than emotions and often (although not always) arise without a specific event acting as a stimulus.118

Exhibit 2-8 shows the relationships among affect, emotions, and moods. As the exhibit shows, affect is a broad term that encompasses emotions and moods.

Second, there are differences between emotions and moods. Emotions are more likely lo be caused by a specific event and are more fleeting than moods. Also, some researchers

EXHIBIT 2-8 Affect, Emotions, and Moods

Affect

Defined as a broad range of feelings that people experience. Af fect can be experienced in the form of emotions or moods.

• Caused by specific event • Very brief in duration (seconds or minutes) • Specific and numerous in nature

(many specific emotions such as anger, fear, sadness, happiness, disgust, surprise)

• Usually accompanied by distinct facial expressions

• Action-oriented in nature

• Cause is often general and unclear • Last longer than emotions (hours or days) • More general (two main dimensions-

positive affect and negative affect-that , ... ,. .... - .... ~ are composed of multiple specific emotions)

• Generally not indicated by distinct expressions

• Cognitive in nature

Chapter 2 Perception, Personality, and Emotions 6 1

•

speculate that emotions may be more action-oriented- they may lead us to some immediate action- while moods may be more cognitive, meaning that they may cause us to th ink or brood for a while.119

Affect, emotions, and moods are separable in theory; in practice the dis tinction is not always defined. When we review the OB topics on emotions and moods, you may see more information about emotions in one area and moods in another. This is simply the state of the research. OB in the Street discusses how our perception of emotions can affect our romantic relationships.

From Concepts to Sliills on pages 77- 78 gives you some insight into read ing the emotions of others.

OB IN THE STREET How Perception Causes Fights in Relationships

What happens if you think your partner is neglecting you? A study found that how people perceive the emotions of their romantic partner during a conflict affected their overall view of and reactions to the conflict. 120 The researchers studied the arguments that 105 university students had during an eight-week period. They looked at two types of emotions: •hard" (asserting power) and •soft" (expressing vulnerabil ity) . They also looked al two types of perceptions: •perceived threat• (perception that the partner is being hostile, critical, blaming, or controll ing) and "perceived neglect" (perception that the partner does not seem committed to or invested in the relationship).

The researchers found that when a person sees his or her partner react with hard emotion, that person perceives a threat to control, power, and status in the relationship. When a person sees his or her partner show liule emotion, or less soft emotion than desired, that person perceives partner neglect. The perceived threat and neglect increase the person's own hard and soft emotions.

One of the study's co-authors explained the resu lts as follows: "[W]hal you perceive your partner to be feeling influences different types of thoughts, feelings and reactions in yourself, whether what you perceive is actually correct. . .. If a person perceives the other as angry, they will perceive a threat so they will respond with a hard emotion like anger or blame. Likewise, if a person is perceived lo be sad or vulnerable, they \viii perceive a

: neglect and will respond [with] either flat or soft [emotions]." _ .....................•

Moral Emotions We may lend to think our internal emotions are innate. For instance, if someone jumped out al you from behind a door, wouldn't you feel surprised? Maybe you would, but you might also feel any of the other five universa l emotions- anger, fear, sadness, happiness, or disgust- depending on the circumstance. Our experiences of emotions are closely lied lo our interpretations of events.

Researchers have been studying what are called moral emotions; that is, emotions that have moral implications because of our instant judgment of the situation that evokes them. Examples of moral emotions include sympathy for the suffering of oth- ers, guilt about our own immoral behaviour, anger about injustice done to others, and contempt for those who behave uneth ically.

Another example is the disgust we feel about violations of moral norms, called moral disgust. Moral disgust is different from disgust. Say you stepped in cow dung by mis- take- you might feel disgusted by it, but not moral disgust- you probably would not make a moral judgment. In contrast, say you watched a video of a police officer making

moral emotions Emotions that have moral implications.

62 Part 1 Understanding the Workplace

e Show the impact of emotional labour on employees.

emotional labour When an employee expresses organizationally desired emotions during interpersonal interactions.

felt emotions An individual's actual emotions.

displayed emotions Emotions that are 0<ganizationally required and oon- sidered appropriate in a given job.

a sexist or racis t slur. You might feel disgusted in a different way because it offends your sense of right and wrong. In fact, you might feel a variety of emotions based on your moral judgment of the situation. 121

Interestingly, research indicates that our responses to moral emotions differ from our responses to other emotions. 122 When we feel moral anger, for instance, we may be more likely to confront the situation that causes it than when we just feel angry. However, we cannot assume our emotional reactions to events on a moral level will be the same as someone else's. Moral emotions are learned, usually in chi ldhood, 123 and thus they are not universal like innate emotions. Because morality is a construct that differs among cultures, so do moral emotions. Therefore, we need to be aware of the moral aspects of situations that trigger our emotions and make certain we understand the context before we act, especially in the workplace.

You can think about this research in your own life to see how moral emotions operate. Consider a time when you have done something that hurt someone else. Did you feel angry or upset with yourself? Or think about a time when you have seen some- one else trea ted unfairly. Did you feel contempt for the person acting unfa irly, or did you engage in a cool, ra tional calculation of the justice of the situation? Most people who think about these situa tions have some sense of an emotional stirring that might prompt them to engage in ethical actions like donating money to help others, apologiz- ing and attempting to make amends, or intervening on behalf of those who have been mistreated. In sum, we can conclude that people who are behaving ethically are at least partially making decisions based on their emotions and feelings.

Emotions can be fleeting, but moods can endure .. . for quite a whi le. In order to understand the impact of emotions and moods in organizations, we next classify the many distinct emotions into broader mood categories.

Choosing Emotions: Emotional Labour If you have ever had a job working in retail sales or waiting on tab les in a restaurant, you know the importance of projecting a friendly demeanour and smil ing. Even though there \Vere days when you did not feel cheerful, you knew management expected you to be upbeat when dealing with customers. So you faked it. Every employee expends physical and mental labour by putting body and mind into the job. But jobs also require emotional labour, an employee's expression of organizationally desired emotions during interpersonal transactions at work. 124 Emotional labour is a key component of effective job performance. We expect flight attendants to be cheerful, funeral directors to be sad, and doctors emotionally neutral. At the least, your managers expect you to be courteous, not hostile, in your interactions with co-workers.

Ever \vonder why the grocery

clerk is a1~,·ays s,niling'?

The way we experience an emotion is obviously not always the same as the way we show iL To analyze emotional labour, we divide emotions into felt or displayed emotions. 125

Fell emotions are our actual emotions. In contrast, displayed emotions are those that the organization requires employees to show and considers appropriate in a given job. They are not natural; they are learned.

Effective managers have learned to be serious when giving an employee a nega tive performance evaluation and look calm when they are bera ted by their bosses, because the organization expects these displays. Of course, there are no display rules for many workplace situations. Does your employer dictate what emotions you display when you are, say, heading out for lunch? Probably not. Many workplaces have explici t display rules, but usua lly only for interactions that mauer, particularly between employees and customers. Regard ing employee and customer interactions, you might expect that the more an employer dictates salespeople's emotional displays, the higher the sales.

Chapter 2 Perception, Personality, and Emotions 63

Actually, employees under very high or very low display rules do not perform as well in sales situations as employees who have moderate display ru les and a high degree of discretion in their ro les_ 126

Displaying fake emotions requires us to suppress real ones. Surface acting is hid- ing one's inner feelings and emotional expressions in response to disp lay ru les. For example, when an employee smiles at a customer even when he does not feel like it, he is surface acting. Deep acting is trying to modify one's true inner feelings based on d isplay rules. A health care provider trying to genuinely feel more empathy for her patients is deep acting. 127 Surface acting deals with one's displayed emotions, and deep acting deals with one's felt emotions. Research in the Netherlands and Belgium indicated that surface acting is stressful to employees, while mindfulness (learning to objective ly evaluate one's emotional situation in the moment) is beneficial lo employee well -being_ 12a

Displaying emotions we don't really feel is exhausting. Surface acting is associ- ated with increased stress and decreased job satisfaction. 129 Surface acting on a daily basis can also lead to emotional exhaustion al home, work-family conflict, and insomnia. 130 On the other hand, deep acting has a positive relationship with job satisfaction and job performance. 131 We also experience less emotional exhaustion with deep acting. So, it is important to give employees who engage in surface acting a chance to relax and recharge. A study that looked at how cheerleading instructors spent their breaks from teaching found those who used the time to rest and relax were more effective after the ir breaks. 132 Instructors who did chores during their breaks were only about as effective after their break as they were before. Another s tudy found that in hospita l work groups where there were heavy emotional disp lay demands, burnout was higher than in other hospital work groups.133 Although much of the research on emotional labour shows negative consequences for those disp laying false positive emotions, one study suggests that as people age, engaging in positive emo- tions and atti tudes, even when the circumstances warrant otherwise, actually enhances emotional well-being. 134 The Experiential Exercise on page 74 asks you whether you can detect when someone is lying.

Why Should We Care About Emotions in the Workplace? We have seen that emotions and moods are an important part of our personal and work lives. Bul how do they influence our job performance and satisfaction? Affective events theory (AET) proposes that employees react emotionally lo th ings that happen to them at work, and this reaction influences their job performance and satisfaction. 135

Say you just found out your company is downsizing. You might experience a variety of negative emotions, causing you to worry that you will lose your job. Because il is out of your hands, you feel insecure and fearful, and spend much of your Lime worrying rather than working. Needless lo say, your job satisfaction will also be down.

Work events trigger positive or negative emotional reactions, to which employees' personalities and moods predispose them to respond with greater or lesser inlensity. 136

People who score low on emotional stabil ity are more likely to react strongly lo negative events, and our emotional response to a given event can change depending on mood. Finally, emotions influence a number of performance and satisfaction variables, such as OCB, organizational commitment, level of effort, intention to quil, and workplace deviance.

In sum, AET offers two important messages. 137 First, emotions provide valuable insights into how workplace events influence employee performance and satisfaction. Second, employees and managers should not ignore emotions or the events that cause them, even when they appear minor, because they accumulate. Emotional intell igence is another framework that helps us understand the impact of emotions on job perfor- mance, so we will look at that next.

surface acting Hiding ooe's inner feelings to display what is expected.

deep acting Trying to modify one's true inner feelings to match what is expected.

mindfulness Objecti'lely and deliberately evaluating !he emotional situation in the moment.

affective events theory (AETI A model that suggests that workplace e'len!s cause emotiooal reactioos oo the part of employees, which !hen influence workplace attitudes and behaviours.

64 Part 1 Understanding the Workplace

0 Contrast the evidence for and against the existence of emotional intelligence.

emotional intelligence (Ell The ability to detect and to manage emotional cues and information.

EXHIBIT 2-9 A Cascading Model of Emotional Intelligence

Conscientiousness

Cognit ive

Emotional Stability

Emotional Intelligence

Perceive Emotions in Self and Others

Understand the Meaning of Emotions

Regulate Emotions

Diane is an office manager. Her awareness of her own and others' emotions is almost zero. She is moody and unable to generate much enthusiasm or interest in her employ- ees. She does not understand why employees get upset with her. She often overreacts to problems and chooses the most ineffectual responses to emotional situations. 138 Diane has low emotional intelligence. Emotional intelligence (EI) is a person's abi lity to ( 1) perceive emotions in the self and others, (2) understand the meaning of these emotions, and (3) regulate his or her own emotions accordingly in a cascading model. as shown in Exhibit 2-9. People who know their own emotions and are good at read ing emotional cues- for instance, knowing why they are angry and how to express themselves without violating norms- are most likely to be effective.139 Focus 011 Research looks at the issue of whether smiles are infectious. You may be surprised to learn the extent to which your mood can affect the mood of others.

FOCUS ~NESEARCH Smile, and the Work World Smiles with You

Can you make another person smile? It is true that a smile usually creates an unconscious return smile from the person smiled at.140 However, anyone who has ever smiled at an

angry manager knows that a smile does not always have a positive effect. In truth, the

giving and withholding of smiles is an unconscious power play of office politics. New research on the "boss effect" suggests that the amount of power and status a

person feels over another person dictates who will smile. Subordinates generally smile

more often than their bosses smile back at them. However, the perception of power is complex and varies by national culture: In a recent study, Chinese workers reflexively

smiled only at bosses who had the power to give them negative job evaluations, while

US participants smiled most to managers perceived to have higher social power. Other researchers found that when individuals felt powerful , they usually did not return even a

high-ranking individual's smile. Conversely, when people felt powerless, they returned

everyone's smiles. While we think of smiling as a choice, smiling (or concealing a smile) is often uncon-

scious. Researchers are finding that social pressure affects neurobiology. "It shapes your

neural architecture," said cognitive neuroscientist Sook-Lei Liew. Smile reactions are, therefore, partially involuntary; when smiling is a product of our attitudes, it can become

an unconscious process. Thus, "your feelings about power and status seem to dictate how much you are willing to return a smile to another person," cognitive neuroscientist

: Evan Carr affirmed. . ........................................................... .

Chapter 2 Perception, Personality, and Emotions 65

A comprehensive study reviewed and analyzed most of lhe previous studies on EI and concluded lhat El is strongly and posi tively correlated w ith job performance-

emotionally intell igent people are beuer workers. 141 One study lhat used functional

magnetic resonance imaging {fMRI) technology found lhal executive MBA students who performed best on a strategic decision-making task were more l ikely to incorporate

emotion centres of lhe brain into lheir choice process. The students also de-emphasized lhe use of lhe more cogni tive parts of their brains. 142 One simulation study showed that

students who were good at identifying and distinguishing among lheir own feelings

were able to make more profitable investment decisions. 143

Al though the field is progressing in iL~ understanding of El, many questions have

not been answered. One relates to proving what EI may predict. For example, whi le

evidence indicates that EI has some correlation wilh job performance, the correlation is not h igh, and il is explained lo a large degree by tra its such as emotional stabil ity. A

second question is about lhe reliabi l ity of El testi ng. For example, part of the reason El

has only a modest correlation w ith job effectiveness is that il is hard to measure- mostly il is measured w ith self-report inventories, which of course are often far from objective!

Thus, assessing exactly how EI should be used in lhe workplace is unclear, as Focus on Ethics shows.

FD c us ~~HICS An Ethical Choice

Should managers use emotional intelligence tests? Should El tests be used to select the best job candidate?144 Here are some ethical considerations:

• No commonly accepted test exists. For instance, researchers have recently used

the Mayer-Salovey-Caruso Emotional Intelligence Test (MSCEll), the Trait Emotional Intelligence Questionnaire, and the Situational Judgment Test of Emotional Intelligence

(SJT of El) in studies. Researchers feel El tests may need to be culturally specific because emotional displays vary by culture; thus, the interpretation of emotional

cues differs. For example, a recent study in India comparing the El scores for Indian

and North American executives using the Emotional Competence Inventory (ECl-2) test found the results similar but not the same, suggesting the need for modification.

• Applicants may react negatively to taking an El test in general, or to parts of it. The face

recognition test, for example, may seem culturally biased to some if the subject photos are not diverse. Also, participants who score high on El tests tend to consider them

fair; applicants who score lower may not perceive the tests to be fair and can thus view

the hiring organizations unfavourably- even if they score well on other assessments. • El tests may not be predictive of performance for all types of jobs. In a study of 600

Romanian participants, results indicated that El was valid for salespeople, public

servants, and CEOs of public hospitals, but these were all roles requiring significant social interaction. El tests may need to be tailored for each position category or not

be used when the position description does not warrant.

• It remains somewhat unclear what El tests are actually measuring. They may reflect personality or intelligence, in which case other measures might be better. Also, mixed

El tests may predict job performance, but many of these tests include personality constructs and measures of general mental ability.

• Not enough research exists on how B affects counterproductive or desirable work behav- iours. It may not be prudent to test and select applicants who are rated high on El when we are not yet certain that everything about El leads to desired workplace outcomes.

These concerns suggest that El tests should be avoided in hiring decisions. However,

because research has indicated that El does predict job performance to some degree, managers should not be too hasty to dismiss them altogether. Rather, those wishing to

use El in hiring decisions should be aware of these issues to make informed and ethical

decisions about not only whom to hire but also how to hire. _ . . . . . . . . . . . . . . . . . . . . . . . _

66 Part 1 Understanding the Workplace

G) Identify strategies for emotion regulation and their likely effects.

Negative Workplace Emotions Negative emotions can lead lo a number of deviant workplace behaviours. Anyone who has spent much time in an organization realizes that people often engage in voluntary actions that violate established norms and threaten the organization, its members, or both. These actions are called co11nterprod11clive work behaviour.s. 145 They can be traced lo negative emotions and can take many forms. People who feel negative emotions are more likely than others lo engage in short-term deviant behaviour al work, such as gossiping or surfing the Internet, 146 though negative emotions can also lead lo more serious forms of counterproductive work behaviour.

For instance, envy is an emotion that occurs when you resent someone for hav- ing something you don't, and strongly desire- such as a belier work assignment, larger office, or higher salary. It can lead to mal icious deviant behaviours. An envious employee could undermine other employees and take all the credit for th ings others accomplished. Angry people look for other people lo blame for their bad mood, inter- pret other people's behaviour as hostile, and have trouble considering others' points of view. 147 It's not hard to see how these thought processes, too, can lead directly lo verbal or physical aggression.

Managing emotions in the workplace becomes important both lo ward off negative behaviour and lo encourage positive behaviour in those around us. Some managers have even hired happiness coaches for their employees, as discussed in Echical Di/em.ma on pages 74-75.

You may be surprised lo learn the extent lo which your mood can affect the mood of others. A recent study in Pakistan found that anger correla ted with more aggres- sive counterproductive work behaviours such as abuse against others and production deviance, while sadness did not Interestingly, ne ither anger nor sadness predicted workplace withdrawal, which suggests tha t managers need to take employee expres- sions of anger seriously; employees may stay with an organization and continue lo act aggressively toward others. 148 Once aggress ion starts, it's likely that other people will become angry and aggressive, so the stage is set for a serious escalation of negative behaviour. Managers therefore need lo stay connected with their employees lo gauge emotions and emotional intensity levels.

Emotion Regulation Have you ever tried to cheer yourself up when you are feeling down or calm yourself when you are feel ing angry? If so, you have engaged in emocion regulation.149 The cen- tral idea behind emotion regulation is lo identify and modify the emotions you feel. Recent research suggests that emotion management abi lity is a strong predictor of task performance for some jobs and organizational citizenship behaviours. 150 Therefore, in our study of OB, we are interested in whether and how emotion regulation should be used in the workplace. We begin by identifying which individuals might natura lly employ iL

Emotion Regulation Techniques Researchers of emotion regulation often study the strategies people may employ lo change their emotions. One technique we have dis- cussed in this chapter is surface acting, or literally •pulling on a face• of appropriate response lo a given situation. Surface acting does not change emotions, though, so the regulation effect is minimal and the resu lt of daily surface acting leads lo exhaustion and fewer OCBs. 151 Perhaps due lo the costs of creatively expressing what we don't feel, individuals who vary their surface-acting response may have lower job satisfac- tion and higher levels of work withdrawal than those who consistently give the same responses. 152

Deep acting, another strategy we have covered, is less psychologically costly than surface acting because the employee is actually trying lo experience the emotion. Emo- tion regulation through deep acting can have a positive impact on work outcomes.

Chapter 2 Perception, Personality, and Emotions 67

For example, a recent study in the Netherlands and Germany found that individuals in service jobs earned significantly more direct pay {tips) after they received tra ining in deep acting.153

One technique of emotion regulation is emotional suppression, or suppressing initial emotional responses to situations. This response seems to facilitate practical th inking in the short term. However, it appears Lo be helpful only when a strongly negative event would elici t a distressed emotional reaction in a crisis siluation.154 For example, a sol- dier in baule may suppress initial emotional distress after a shooting and thus be able to make clearer decisions about how Lo proceed. A portfolio manager might suppress an emotional reaction to a sudden drop in the value of a s tock and therefore be able to clearly decide how Lo plan. Suppression used in crisis situations appears Lo help an individual recover from the event emotionally, while suppression used as an everyday emotion regulation technique can take a toll on mental ability, emotional ability, health, and relationships. 155

Thus, unless we are truly in a crisis situation, acknowledging rather than suppressing our emotional responses to situations, and re-evaluating evenL~ after they occur yield the best outcomes.156 Cognitive reappraisal, or reframing our outlook on an emotional situa tion, is one way Lo effectively regulate emotions. 157 Cognitive reappra isal ability seems to be the most helpful to individuals in situations where they cannot control the sources of stress. 158 A recent study illustrates the potentially powerful effect of this technique. Israel i participants were shown anger-inducing information about the Israeli- Palestinian conflict; after they were primed to reappraise the situation they showed more willingness to consider conciliatory measures toward Palestine and less support for aggressive tactics against Palestinians, no t just immediately after the study but up to five months later. This finding suggests that cogni tive reappraisal may allow people to change their emotional responses, even when the subject matter is as highly emotionally charged as the Israeli-Palestinian conflict. 159 Mindfulness also has been shown to increase the abil ity Lo shape our behavioural responses Lo emotions.160 When people become non-judgmentally aware of the emotions they are experiencing, they are beuer able to look at situations separately from their emotions.

Another technique with potential for emotion regulation is social sharing or venting. Research shows that the open expression of emotions can help the individuals regu- late their emotions, as opposed Lo keeping emotions •bottled up.• Social sharing can reduce anger reactions when people can talk about the facts of a bad situation, their feelings about the situation, or any positive aspects of the situation. 161 Caution must be exercised, though, because expressing your frustration affects other people. In fact, whether venting emotions helps the •venter" feel beller depends very much upon the listener's response. If the listener does not respond (many refuse to respond to venting), the venter actually feels worse. If the listener responds with expressions of support or validation, the venter feels heller. Therefore, if we are going to vent to a co-worker, we need to choose someone who will respond sympathetically. Venting Lo the perceived offender rarely improves things and can result in heightening the negative emotions. 162

[[~ ]] RESEARCH FINDINGS: Emotion Regulation ;J}.,: While emotion regulation techniques can help us cope with difficuh work- ~ place situations, research indicates that the effect varies. A recent study in

Taiwan found that participants who worked for abusive supervisors reported emotional exhaustion and work withdrawal tendencies, but to different degrees based on the emo- tion regulation strategies they employed. Employees who used suppression techniques suffered greater emotional exhaustion and work withdrawal than employees who used cognitive reappra isal. This suggests that more research on the application of techniques needs Lo be done to help employees increase their coping skills. 163

68 Part 1 Understanding the Workplace

Thus, whi le there is much promise in emotion regulation techniques, the best route to a posi tive workplace is lo recruit posi tive-minded individuals and to tra in leaders to manage their moods, job attitudes, and performance. 164 The best leaders manage emo- tions as much as they do tasks and activities. The best employees can use their knowl- edge of emotion regulation to decide when to speak up and how to express themselves effectively. 165 With computers now being programmed lo read emotions, as OB in the Workplace indicates, it may be harder to hide emotions at work in the future.

Affective Computing: Reading Your State of Mind

Can computers really recognize a user's emotions? The Massachusetts Institute of Technology (MIT) Media Lab is currently programming computers to use 24 facial points from which they can infer an emotion. 166 Whal if computers could be made emotionally intelligent to help a person get past frustration into productivity? What if managers could automatically receive reports on virtual employees' emotions? What if sensors could help employees stay well by providing feedback on their emotional reactions to stress?

Affective computing can provide managers with in-the-moment help. At Mfrs lab, a tiny traffic light, visible only to the wearer, flashes yellow when a listener's face indicates lack of engagement in the conversation and red for complete disengagement. These cues could help a manager who is del ivering importan t safety information to an employee, for instance. The MIT team has also developed wristbands that sense emotional stales and activity levels. They could help managers work with employees who are on the Asperger's or autism spectrum. ·with th is technology in the future, we' ll be able to understand things .. . that we weren' t able to see before, things that calm them, things that stress them," said Rosalind Picard, the team's director.

With this possibil ity comes responsibility, of course. Obvious ethical issues will only grow with the technology's increasing sophistication. Employees may not wanl comput- ers lo read their emotions either for their managers' use or for au tomatic feedback. 'We wanl to have some control over how we display ourselves to others," said Nick Bostrom of the University of Oxford's Fu lure of Humanity Institute.

Organizations will eventually have to decide when it is appropriate lo read employ- ees' emotions, as well as which emotions to read. In the meantime, according to affec- tive computing experts, people are s till the best readers of emotions from facial cues. Perhaps managers can get lo know their employees' state of mind by paying closer allention to those cues. . ...................................................... .

Perception Several studies have examined how people observe the world around them. 167 In one s tudy; researchers showed East Asian and US subject.~ a photo with a focal object (l ike a tra in) with a busy background and tracked their eye movements. They found that the US subjects were more likely to look a t the focal object, whereas the East Asian subjects were more likely to look at the background. Thus, the East Asians appeared

Chapter 2 Perception, Personality, and Emotions 69

to focus more on the context or environment than on the most important object in it. As one of the researchers concluded, "If people are seeing different th ings, il may be because they are looking differently at the world."168

Perceptual d ifferences across cultures have been found to be rooted in the brain's architecture. Using an fMRI device to scan subjects' brains, one researcher found lhat when Singaporeans were shown pictures where either the foreground or background was varied, their brains were less attuned to new foreground images and more auuned to new background images than were the brains of US subjects. 169 This finding suggests that perception is not universal, and that the cultural tendency to focus on either an object/person or a context is part of the •hard wiring" of our brains.

Finally, culture affects what we remember as well. When asked to remember events, US subjects recall more about personal details and lheir own personal characteris tics, whereas Asians recall more about personal relationships and group activities. 170

As a set, these studies provide striking evidence lhat Eastern and Western cultures d iffer in one of the deepest aspects of organizational behaviour: how we see the world around us.

Attributions The evidence on cultural d ifferences in perception is mixed, but most stud ies suggest that lhere are differences across cultures in the attributions people make. 171 In one study, Asian managers were more likely to Jay blame on institutions or whole organizations when things went wrong, \vhereas Western observers believed individua l managers should be lhe focus of blame or praise.172 Thal probably explains why Canadian and US newspapers prominently report the names of individual executives when firms do poorly, whereas Asian media provide more coverage of how the firm as a whole has failed. This tendency to make group-based anributions also explains why individuals from Asian cultures, which are more collectivistic in orien tation, are more likely lo use group stereotypes. 173

Self-serving biases may be less common in East Asian cultures, but evidence suggests that they still operate there. 174 Studies suggest lhat Chinese managers assess blame for mistakes using the same distinctiveness, consensus, and consistency cues Western man- agers use. 175 fl may just take more evidence for Asian managers to conclude someone else should be blamed.

Personality The five personality tra its identified in the Big Five model appear in almost all cross- cultural studies. 176 These studies have included a wide variety of diverse cultures- such as China, Israel, Germany, Japan, Spain, Nigeria, Norway, Pakistan, and the United Stales. However, a study of illiterate Indigenous people in Bolivia suggested the Big Five framework may be Jess applicable when studying lhe personalities of small, remote groups.177

Emotions People vary in lhe degree to which lhey experience emotions. In China, for example, people report experiencing fewer positive and negative emotions than people in olher cultures, and lhe emotions they experience are less intense lhan what olher cultures report_ Compared with mainland Chinese, Taiwanese are more like Canadian employees in their experience of emotions: On average, Taiwanese report more posi tive and fewer negative emotions lhan their Chinese counterparts. 178 People in most cultures appear to experience certain positive and negative emotions, bul lhe frequency of lheir experi- ence and their intensity vary to some degree. 179 Exhibit 2-10 illustrates the percentage of people who experience emotions on a dai ly basis across cul lures.

7 0 Part 1 Understanding the Workplace

EXHIBIT 2-10 Emotional States Cross-Culturally

Percentage of people who reported experiencing emotions on a daily basis*

60% 60%

55%

50%

45%

40%

35%

Phi l ippines United States

United Kingdom

Taiwan India Russia Singapore

Most Emotio nal Societies Most Emotio nless Societies

'Respondents in 150+ countries worldwide over two years were asked whether they experienced live posttive emotions (well-rested, treated with respect, enjoyment, smling and laughing, learning or dong something interesting) and f,ve negative emotions (anger, stress, sadness, physical pain, worry) daJy.

Source: J . Clifton, "Singapore Ranks as Least Emotional Country in the World," Gallup World, November 21 , 2012, http:/ /www.gallup.com/ poll/158882/singapore-ranks-least-emotional-country-world.aspx.

LESSONS LEARNED

• People act on the basis of their perception of reality.

• Personality attributes provide a framework for predicting

behaviour. • People who are good at read·

ing the emotions of others

are generally more effective in the workplace.

A recent study suggested that people do no t inlerprel emotions the same way across cultures from vocalizations. While vocalizations (such as sighs or screams) conveyed meaning in all cultures, the specific emotions people perceived varied. For example, Himba participants (from northwestern Namibia) did not agree with Western participants that crying meant sadness or a growl meant anger. 180 In add i- tion, cultures have norms tha t govern emotional expression, so the way we experience an emotion is nol always the same as the way we show it. For example, people in the Middle East and Canada recognize a smile as indicating happiness, but in the Middle East a smile is also often interpreted as a sign of sexual attraction, so women have learned not to smile al men. In collectivist countries, people are more likely to believe another's emotional displays have something lo do with the relationship between them, while people in individualistic cultures don't think o thers' emotional expres- sions are directed at them. - Summary Individuals base their behaviour not on the way their external environment actually is, but rather on the way they see il or believe it to be.

Personality matters to OB. ll does nol explain all behaviour, but it sets the stage. Emerging theory and research reveal how personality matters more in some situa- tions than others. The Big Five Personality Model has been a particularly important advancement, although the Dark Triad and other trails mailer as well. Moreover, every trail has advantages and disadvantages for work behaviour. No perfect constellation of tra its is ideal in every situation. Personality can help you understand why people (including yourself!) act, think, and feel the way they do, and the astute manager can

Chapter 2 Perception, Personality, and Emotions 71

pul lhal understanding to use by taking care lo place employees in situations that best fit lheir personalities.

Emotions and moods are similar in lhat bolh are affective in natu re. They are also different- moods are more general and less contextual than emotions. The time of day, stressful events, and sleep pauerns are some of the factors that influence emotions and moods. OB research on emotional labour, affective events theory, emotional intel- ligence, and emotion regulation helps us understand how people deal with emotions. Emotions and moods have proven relevant for vi rtually every OB topic we study, with implications for managerial practice.

SNAPSHOT SUMMARY j Perception

• Factors That Influence Perception

• Perceptual Errors • Why Do Perception and

Judgment Mattel'?

Personality

• What Is Personality? • Measuring Personality

Myl ab Management

• Personality Determinants

• Personality Traits

• The Dark Triad • Other Personality Attributes

That Influence OB

• Situation Strength Theory

Emotions

• What Are Emotions and Moods?

• Moral Emotions • Choosing Emotions: Emotional

Labour

• Why Should We Care About Emotions in the Workplace?

Study, practise, and explore real business situations with these helpful resources:

• Study Plan: Check your understanding of chapter concepts with self-study quizzes.

• Online Lesson Presentations: Study key chapter topics and work through interactive assessments to test your knowledge and master management concepts.

• Videos: Learn more about the management practices and strategies of real companies.

• Simulations: Practise management decision-making in simulated business environments.

-"' a:I C)

.,. tor Review

1. What is perception? What fac- tors influence our perception?

2. What is attribution theory? What are the three determinants of attribution? What are the impli· cations of attribution theory for explaining organizational behaviour?

3. What is personality? How do we typically measure it? What factors determine personality?

4. What is the Myers-Briggs Type Indicator? What are its strengths

and weaknesses?

5. What are the key traits in the Big Five Personality Model?

6. How do the Big Five personality traits predict behaviour at work?

7. What is the difference between emotions and moods?

8. What impact does emotional labour have on employees?

9. What is the evidence for and against the existence of

emotional intelligence?

1 O. What are some strategies for emotion regulation and their likely effects?

for Managers

• Consider screening job candi- dates for the Big Five personality traits your organization finds most important. Other traits, such as core self-evaluation or narcissism, may be relevant as well.

• Know that the MBTI has been widely criticized. Yet, it may be helpful for training and develop- ment; it can also help employees better understand themselves and one another, open up com- munication in work groups, and possibly reduce conflicts.

• Behaviour follows perception, so to influence behaviour at work, assess how people perceive their work. Often behaviours we find puzzling can be explained by understanding the initiating perceptions.

• Recognize that emotions are a natural part of the workplace and good management does not mean creating an emotion-free environment.

• To foster effective decision mak- ing, creativity, and motivation in employees, model positive emo- tions and moods as much as is authentically possible.

• Regulate your intense emotional responses to an event by recog- nizing the legitimacy of the emo- tion and being careful to vent only to a supportive listener who is not involved in the event.

• Don' t ignore co-workers' and employees' emotions; don' t assess others' behaviour as if it were completely rational. As one consultant said, "You can' t divorce emotions from the work- place because you can't divorce emotions from people."181 Under- standing emotions and moods will significantly improve your abil· ity to explain and predict others' behaviour.

for You

• The discussion of perception might get you thinking about how you view the world. When we per- ceive someone as a troublemaker, for instance, that may be only a perception and not a real charac- teristic of the person. It is always good to question your percep-

tions, just to be sure that you are not reading something into a situ- ation that is not there.

• One important thing to consider when looking for a job is whether your personality will fit the organi- zation to which you are applying . For instance, let's say that you are considering working for a highly structured company. If you, by nature, are much less formal, then that company may not be a good fit for you.

• Sometimes personalities get in the way when working in groups. You may want to see if you can figure out ways to get personality differences to work in favour of group goals.

• Emotions need not always be suppressed when working with others. While emotions can sometimes hinder performance, posit ive emotions can motivate you and those around you.

Chapter 2 Perception, Personality, and Emotions

SOMETIMES YELLING IS FOR EVERYONE'S GOOD

POI NT Anger is discussed throughout this chapter for a rea-

son: It's an important emotion. i s2 There are benefits to

expressing anger. For one, research indicates that only

employees who are committed to their organizations

tend to express their anger, and generally only to lead- ers who created the situation. This type of expression of

anger could lead to positive organizational change. Sec-

ond, suppressed anger can lower job satisfaction and

lead to feelings of hopelessness.

Even with these findings, we hear a lot about not

responding emotionally to work challenges. Work cul- tures teach us to avoid showing any anger at all, lest we

be seen as poor workers or, worse, unprofessional or

even deviant or violent. While, of course, there are times

when the expression of anger is harmful or unprofes-

sional, we have taken this view so far that we now teach people to suppress perfectly normal emotions, and to

ignore the effectiveness of some emotional expression.

Emerging research shows that suppressing anger

takes a terrible internal toll on individuals. One Stanford

University study found, for example, that when individu-

als were asked to wear a poker face during the showing of a movie clip depicting the atomic bombings of Japan

during World War II, they were much more stressed in

conversations after the video. Other research shows

that college students who suppress emotions like anger

have more trouble making friends and are more likely to be depressed, and that employees who suppress anger

feel more stressed by work.

For the good of organizations and their employees,

we should encourage people not to hold back their emo-

tions, but to share them constructively.

COUNTERPOINT Yes, anger is a common emotion. But it's also a toxic one

for the giver and the receiver. Angry outbursts can com-

promise the heart and contribute to diabetes, among

other ill effects. The experience of another's anger and its close correlate, hostility, is also linked to many counter- productive behaviours in organizations. The US Bureau

of Labor Statistics estimates that 16 percent of fatal

workplace injuries result from workplace violence. That

is why many organizations have developed counterac-

tive techniques- to blunt the harmful effects of anger in

the workplace. To reduce outcomes, many companies develop

policies that govern conduct such as yelling, shouting

profanities, and making hostile gestures. Others insti-

tute anger management programs. For example, one

organization conducted mandatory in-house workshops that showed individuals how to deal with conflicts in the

workplace before they boil over. The director who insti-

tuted the training said it "gave people specific tools for

opening a dialogue to work things out." MTS Systems, a

Minnesota engineering firm, engages an outside consult -

ing company to conduct anger management programs for its organization. Typically, MTS consultants hold an

8-hour seminar that discusses sources of anger, conflict

resolution techniques, and organizational policies. This is

followed by one-on-one sessions with individual employ-

ees that focus on cognitive behavioural techniques to

manage their anger. The outside trainer charges around $10 000 for the seminar and one-on-one sessions. The

financial cost, though, is worth it for the emotional ben-

efits the participants receive. "You want people to get

better at communicating with each other,• says MTS

manager Karen Borre. In the end, everyone wins when organizations seek

to diminish both the experience and the expression of

anger at work. The work environment becomes less

threatening and stressful to employees and custom-

ers. Employees are likely to feel safer, and the angry

employee is often helped as well.

74 Part 1 Understanding the Workplace

BREAKOUT GROUP EXERCISES

Fonn small groups to discuss the following topics, as assigned by your instructor. Each person in the group should first identify 3-5 key personal values.

1. Think back to your perception of this course and your instructor on the first day of class. What factors might have affected your perceptions of what the rest of the tenn would be like?

2. Describe a situation where your perception turned out to be wrong. What perceptual errors did you make that might have caused this to happen?

EXPERIENTIAL EXERCISE

Who Can Catch a Liar? We mentioned earlier in the chapter that emotion researchers are highly interested in facial expressions as a window into

individuals' emotional worlds. 183 Research has also studied whether people can tell someone is lying based on signs

of guilt or nervousness in their facial expressions. Let 's see who is good at catching liars, but first consider this: How good you are at detecting lies by others is related to your own mood. You are actually less likely to correctly detect a lie

if you are in a happy mood. Hint: If you are in a negative mood , concentrate mostly on the message itself (Does it seem plausible?); if you are in a positive mood , concentrate more on the nonverbal cues (such as fidgety or calm behaviour).

Split up into teams and follow these instructions.

1. Randomly choose someone to be the team organizer. Have this person write down on a piece of paper "T" for truth and "L" for lie. If there are, say, six people in the group (other than the organizer). then three people will get a slip with a "T" and three a slip with an "L." It's important that all team members keep what is on their paper a secret.

2. Each team member who holds a T slip needs to come up with a true statement, and each team member who holds an L slip needs to come up with a false statement. Try not to make the statement so outrageous that no one would believe it (for example, •1 have flown to the moon").

3. The organizer will have each member make his or her statement. Group members should then examine the person making the statement closely to try to detennine whether he or she is telling the truth or lying . Once each person has made his or her statement, the organizer will ask for a vote and record the tallies.

4. Each person should now indicate whether the statement was the truth or a lie.

5. How good was your group at catching the liars? Were some people good liars? What did you look for to deter- mine whether someone was lying?

ETHICAL DILEMMA

Happiness Coaches for Employees We know there is considerable spillover from personal

unhappiness to negative emotions at work.184 More-

over, those who experience negative emotions in life and at work are more likely to engage in counterpro-

ductive behaviours with customers, c lients, or fellow

employees.

Increasingly, organizations such as American Express,

UBS, and KPMG are turning to happiness coaches to

address this spillover from personal unhappiness to work emotions and behaviours.

Srikumar Rao is a former college p rofessor who

has the nickname "the happiness guru." Rao teaches

people to analyze negative emotions to prevent them

from becoming overwhelming. If your job is restructured,

for example, Rao suggests avoiding negative thoughts

and feelings about it. Instead, he advises, tell yourself it

could tum out well in the long run, and there is no way

to know at present.

Beyond reframing the emotional impact of work situ-

ations, some happiness coaches attack the negative

emotional spillover from life to work (and from work to

life). A working mother found that a happiness talk by

Shawn Achor helped her stop focusing on her stressed-

out life and instead look for chances to smile, laugh, and

be grateful.

In some cases, the claims made by happ iness

coaches seem a bit trite. Jim Smith, who labels himself

"The Executive Happiness Coach,• asks: "What if I told

you that there are secrets nobody told you as a kid-or

as an adult , for that matter-that can unlock for you

all sorts of positive emotional experiences? What if

the only thing that gets in the way of you feeling more

happiness is-YOU?! What if you can change your

experience of the world by shifting a few simple things

in your life, and then practising them until they become

second nature?"

Chapter 2 Perception, Personality, and Emotions 75

If employees leave their experiences with a happiness

coach feeling happier about their jobs and their lives, is

that not better for everyone? Says one individual, Ivelisse

Rivera, who felt she benefited from a happiness coach,

"If I assume a negative attitude and complain all the time,

whoever is working with me is going to feel the same way.•

But what if you cannot afford a happiness coach and

your employer does not want to foot the bill? Recent

research suggests a do-it-yourself opportunity to increase

your good mood at home. The key is to lend a helping

hand. If you help others at work, you may find that later

at home, after you have had a chance to relax and reflect,

your mood will be improved.

Questions

1. Do you think happiness coaches are effective? How might you assess their effectiveness?

2. Would you welcome happiness training in your workplace? Why or why not?

3. Under what circumstances- if any-is it ethically appropriate for a supervisor to suggest a happiness coach for a subordinate?

CASE INCIDENTS

The Power of Quiet If someone labelled you an "introvert" how would it make you feel? 1 ss

Judging from research on social desirability, most of

us would prefer to be labelled extraverts. Normal distri-

butions being what they are, however, half the world is

more introverted than average. Earlier in the chapter we

discussed the upside of introversion, but in many ways, it's an extravert's world . So says Susan Cain in her best-

selling book Quiet.

Cain makes three arguments:

1. We see ourselves as extraverts. Introversion

is generally seen as undesirable, partly because extraverts like being in charge and are more apt to

shape environments to fit their wishes. "Many of the most important institutions of contemporary life are

designed for those who enjoy group projects and

high levels of stimulation."

2. Introversion is driven underground. Thanks to

social norms and structures, introverts often are

forced to be "closet introverts"-acting according to an extraverted ideal, even if that is not their

personality at heart. Think about it. If someone

comments, "You're awfully quiet ," they nearly

always assume an underlying problem, as if not

being quiet is the norm.

3. Extraversion is not all it's cracked up to be. Because introversion is suppressed, we cause the

introverts of the world distress and fail to capitalize on

the many virtues of introversion. We may overlook the

quiet, thoughtful introvert when choosing a leader,

we may quell creativity by doing most of our work in

groups, and we may mistake appearance for reality ("Don't mistake assertiveness or eloquence for good

ideas," Cain writes). Society may unwittingly push

people to take risks more than is warranted, to act

before they think, and to focus on short-term rewards

above all else. Introverts prefer quiet conditions to concentrate on difficult tasks.

76 Part 1 Understanding the Workplace

Cain is not anti -extravert. She simply thinks we should

encourage people to be who they truly are, and that

means valuing extraversion and introversion. Research

indicates happy introverts are every bit as happy as happy

extraverts. Cain concludes, "The next time you see a

person with a composed face and soft voice, remember

that inside her mind she might be solving an equation,

composing a sonnet, designing a hat. She might, that is,

be deploying the powers of quiet.•

Quest.ions

1. Would you classify yourself as introverted or extra- verted? How would people who know you describe

you?

2. Would you prefer to be more introverted, or more extraverted, than you are? Why?

3. Do you agree with Cain's arguments? Why or why not?

Tall Poppy Syndrome " ... the tall poppy syndrome, where the successful

are cut down to the same size as everyone else,

quick smart. You're not supposed to stand out for

intelligence, achievement, or, worst of all, wealth."

- Peter Hartcher

You may be wondering what poppies have to do w ith

the workplace. 186 It's a reasonable question. The alle-

gory behind tall poppy syndrome goes back centuries,

but the emotions of envy and resentment toward strong

performers - and the desire to •cut them down to size" -

are timeless. So is the reality- evidence indicates that

indiv iduals whose performance and status rise above

the rest (the tall poppies) sometimes find their careers

are decapitated by jealous co-workers (the shorter pop-

pies) who undermine their efforts. Tall poppies are more

likely to be victimized by group members, and group

members are often pleased if a tall poppy is "brought

down• by outsiders.

Tall poppy syndrome seems to be motivated by the

observer's personality traits, emotions, and perception

of justice. When individuals believe the high achiever

is undeserving of his or her status, or conversely when

individuals believe they deserve a higher status than they

have been given (called relative deprivation), resentment

and envy are heightened. The degree of tall poppy syn-

d rome also seems to relate to the trait s of the people

who judge their co-workers. People who have lower self-

esteem and who do not value power and achievement

tend to think high performers are undeserving and should

fall. Finally, the general likeability of the achiever seems

to influence the emotions of observers. If achievers are

popular, part of the in-group, work hard, and exhibit high

moral character, observers are less likely to feel resentful

and wish them ill.

Tall poppy syndrome may be universal, but there are

cultural d ifferences. Research has shown that in col-

lectivistic soc ieties like Japan, students in a study were

more inclined to cut down a high performer because they

resented distinguishing one person more than the rest of

the group. In contrast, students from the indiv idualistic

United States were more likely to reward high achievers

than were Australian students because the Americans did

not feel the same degree of envy.

To the extent that it cuts down those with legitimate

achievements, there is noth ing good about tall poppy

syndrome when high performers are victimized and work

performance is limited to a common denominator. Both

the high performer and the organization can employ some

countermeasures aimed at lessening the emotional reac-

tions of observers. For one, high performers can demon-

strate humbleness and humility. This may allow them to

boost the performance of co-workers, who then no longer

feel resentful of their success. Second, managers can

increase work group identity for the co-workers, so they

see the success of one individual as the success of the

group, rather than as an injustice.

Quest.ions

1. Have you observed tall poppy syndrome in your workplace or school? Which traits seemed to bother the observers the most?

2. In what specific ways do you think high performers can mitigate feelings of envy and resentment? Give examples.

The easiest way to find out what someone is feeling is to ask them. Saying something as simple as "Are you okay? What's the problem?" can often provide you with the information to assess an individual's emotional state. But relying on a verbal response has two drawbacks. First, almost all of us conceal our emotions to some extent for pri- vacy and to reflect social expectations. So we might be unwilling to share our true feelings. Second, even if we want to verbally convey our feelings, we may be unable to do so. As we noted earlier, some people have d ifficulty understanding their own emotions and, hence, are unable to express them verbally. So, at best, verbal responses provide only partial information.

Let's say you are talking with a co-worker. Does the fact that his

back is rigid, his teeth clenched, and his facial muscles tight tell you

something about his emotional state? It probably should. Facial expres- sions, gestures, body movements, and physical distance are nonverbal

cues that can provide additional insights into what a person is feeling.

The facial expressions shown in Exhibit 2 - 11 , for instance, are a win- dow into a person's feelings. Notice the difference in facial features:

the height of the cheeks, the raising or lowering of the brow, the turn of

the mouth, the positioning of the lips, and the configuration of muscles

EXHIBIT 2-11 Facial Expressions and Emotions

Each picture portrays a different emotion. Try to identify them before looking at the answers.

Top, left to right: neutral, surprise, happiness. Bottom: fear, sadness, anger.

Source: Paul Ekman, PhD/ Paul Ekman Group, LLC.

Chapter 2 Perception, Personality, and Emotions 77

Reading Emotions Understanding another person's felt emotions is very difficult. But we can learn to read others' dis- played emotions.187 We do this by focusing on verbal, nonverbal, and paralanguage cues.

Cl co "' -

78 Part 1 Understanding the Workplace

• • • • • • • • • • • • • • • • • • • • •

Practising Skills

•••••••••••••••••••••

Reinforcing Skills

around the eyes. Even something as subtle as the distance at which

someone chooses to posit ion him- or herself from you can convey

how much intimacy, aggressiveness, repugnance, or withdrawal that

person feels.

When you speak with someone, you may notice a sharp change in the

tone of her voice and the speed at which she speaks. You are tapping into

the third source of information on a person's emotions- paralanguage.

This is communication that goes beyond the specific spoken words. It

includes pitch, amplitude, rate, and voice quality of speech. Paralanguage

reminds us that people convey their feelings not only in what they say, but

also in how they say it.

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

Part A. Form groups of 2. Each person is to spend a couple of minutes

thinking of a time in the past when he or she was emotional about some-

thing . Examples might include being upset with a parent, sibling, or friend;

being excited or disappointed about an academic or athletic achievement;

being angry with someone over an insult or slight; being disgusted by

something someone has said or done; or being happy because of some-

thing good that happened . Do not share this event with the other person in your group.

Part 8 . Now you will conduct 2 role plays. Each will be an interview. In

the first, 1 person will play the interviewer and the other will play the job

applicant. The job is for a summer management internship with a large

retail chain. Each role play will last no longer than 10 minutes. The inter-

viewer is to conduct a normal job interview, except you are to continually

rethink the emotional episode you envisioned in part A. Try hard to convey

this emotion while, at the same time, being professional in interviewing the

job applicant.

Part C. Now reverse positions for the second role-play. The interviewer

becomes the job applicant and vice versa. The new interviewer will con-

duct a normal job interview, except that he or she will continually rethink

the emotional episode chosen in part A.

Part 0 . Spend 10 minutes analyzing the interview, with specific atten-

tion focused on these questions: What emotion(s) do you think the other

person was conveying? What cues did you pick up? How accurate were

you in reading those cues?

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

1. Watch the actors in an emotion-laden film, such as Death of a Sales- man or 12 Angry Men, for clues to the emotions they are exhibiting . Try to determine the various emotions projected and explain how you arrived at your conclusion.

2. Spend a day specifically looking for emotional cues in the people with whom you interact. Did paying attention to emotional cues improve communication?

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0 f)

e e e

Values, Attitudes, and Diversity in the Workplace

Contrast Rokeach's terminal and instrumental values.

Describe Hofstede's value dimensions for assessing cultures.

Identify unique Canadian values.

Understand the three components of an attitude.

Describe key attitudes that affect organizational performance.

Ladies Learning Code was

developed to teach adult women how to code. Will

0 0

9 0

endeavours like this improve the diversity in

technology jobs?

Summarize the main causes of job satisfaction.

Identify the main consequences of job satisfaction.

Identify four employee responses to job dissatisfaction.

Describe how organizations can manage diversity effectively.

Identify the benefits of cultural intelligence.

onald Trump's travel ban for citizens from seven predominantly Muslim countries sparked an outcry from many Canadians.1 Justin Trudeau tweeted, "To those fleeing persecution, terror & war, Canadians will welcome you, regardless of your faith.

Diversity is our strength." Canadian tech companies, including Black- Berry, Hootsuite, and Shopify, also spoke out,

and executives and employees signed an online letter calling on the federal gov-

ernment to issue visas to individu- als affected by the ban. The tech Tara watton'lorontoS1ar1Gettylmages

community felt that diversity was the strength of their

industry, thus their strong support. However, tech companies are not as diverse as they imagine and they are sometimes criticized for their hosti le environments toward women. One of Uber's former female

engineers wrote a scathing review of the treatment of women in Uber's engineering department. There is also concern that fewer women go into the STEM subjects

(Science, Technology, Engineering, and Mathematics) , making them less likely to end up in the technology sector.

Toronto-based Ladies Learning Code is training women and youth to become more engaged with technology (founders Melissa Crnic, Heather

Payne, Breanna Hughes, and Laura Plant are shown here). The com- pany was founded in 2011 by four young women who decided to run workshops for women who wanted to learn to code. Their mission

statement makes their values clear: "We are a not-for-profit organiza- tion with the mission to be the leading resource for women and youth to

become passionate builders-not just consumers-of technology by learning technical skills in a hands-on, social, and collaborative way." In this chapter, we look carefully at how values influence behaviour and consider

the relationship between values and attitudes. We also examine two significant issues that arise from our discussion of values and attitudes: how to enhance job satisfaction and

manage workforce diversity.

\ I I ' , :o: ~ ' , '

• How do countries differ in their values? 'l'IIE BIG IDEA • Are Millennials really different from their elders?

• What things affect your job satisfaction?

• Are you comfortable working with people from other cultures?

\"alues affecL our behaviours and

aLLiLudes, and can have a big impacL on ho\v people "vilh differenl

backgrounds gel along in tl1e \\'Orkplace.

82 Part 1 Understanding the Workplace

O Contrast Rokeach's ter· minal and instrumental values.

values Basic convictions !hat a specific mode of conduct 0< end-state of existence is personally or socially preferable to an oppooite or converse mode of conduct 0< end-state of existence.

value system A hierarchy based on a ranking of an individual's values in terms of their intensity.

terminal values Goals !hat indi- viduals would like to achieve during their lifetime.

instrumental values Preferable ways of behaving.

Values Is capital punishment right or wrong? Is a person's desire for power good or bad? The answers to these questions are value-laden.

Values represent basic convictions that "a specific mode of conduct or end-state of existence is personally or socially preferable to an opposite or converse mode of con- duct or end-state of existence. "2 They contain a judgmental element in that they carry an individual's ideas as to what is right, good, or desirab le. Values have both content and intensity attributes. The content attribute says a mode of conduct or end-state of existence is import.ant. The intensity attribute specifies how important it is. When we rank an individual's values in terms of their intensity, we discover that person's value sys- tem. All of us have a hierarchy of values according to the relative importance we assign to va lues such as freedom, pleasure, self-respect, honesty, obedience, and equality.3

Values tend to be relatively s table and enduring.4 Most of our values are formed in our early years- with input from parents, teachers, friends, and others. A~ children, we were told that certain behaviours or outcomes are always desirable or always undesirable. There were few grey areas. It is this absolute or "black-or-white" characteristic of values that more or less ensures their stability and endurance. If we question our values, they may change, but more often they are reinforced. There is also evidence linking personal- ity to values, implying our values may be partly determined by genetically transmined trai ts.5 Open people, for example, may be more pol itically liberal, whereas conscien- tious people may place a greater value on safe and ethical conduct. Below we examine two frameworks for understanding values: Milton Rokeach's terminal and instrumental values, and Kent Hodgson's general moral principles.

Rokeach Value Survey Milton Rokeach created the Rokeach Value Suivey (RVS), which consists of two sets of values, each containing 18 individual value items. One set, called terminal values, refers to desirable end-states of existence. These are the goals that individuals would like to achieve during their lifetime. They include

• A comfortable life (a prosperous life)

• An exciting life (a stimulating, active life)

• A sense of accomplishment (lasting contribution)

• Equality (brotherhood, equal opportunity for all)

• Inner harmony (freedom from inner conflict)

• Happiness (contentedness)

The other set, called instrumental values, refers to preferable modes of behaviour, or means for achieving the terminal values. They include

• Ambitious (hard-working, aspiring)

• Broad-minded ( open-minded)

• Capable ( competent, effective)

• Courageous (standing up for your beliefs)

• Imaginative ( daring, creative)

• Honest (sincere, truthful)6

Each of us places value on both the ends (terminal values) and the means (instru- mental values) . A balance between the two is important, as well as an understanding of how to strike this balance.

Chapter 3 Values, Attitudes, and Diversity in the Workplace 83

Hodgson's General Moral Principles Ethics is the s tudy of moral principles that guide our behaviour and inform us whether actions are right or wrong. Thus, ethical principles are related to moral judgments about right and wrong.

~ OB~c110N In recent years, there has been concern that individuals are

not grounded in moral principles. It is believed that this lack of moral roots has resulted in a number of business scandals, such as those al WorldCom, Enron, Hollinger International, and even in the sponsorship scandal of the Canadian govern- ment. We discuss the issue of ethics further in Chapter 12.

The Magnificent Seven Principles

-+ Dignity of human life. The lives of people are to be respected.

-+ A11tonomy. All persons are intrinsically valu- able and have the right to self-determination.

Management consultant Kent Hodgson has identified seven general moral principles tha t individuals should follow when making decisions. He calls these "the Magnificent Seven" and suggests that they are universal values that managers should use to make principled, appropriate, and defensible decisions.7 They are presented in OB in Action- The Magnificent Seven Principles.

-+ Honesty. The truth should be told to those who have a right to know it.

-+ Loyalty. Promises, contracts, and commit- ments should be honoured .

-+ Fairness. People should be treated justly.

Assessing Cultural Values -+ H11maneness. Our actions ought to accom-

plish good, and we should avoid doing evil.

I As it develops its many workshops, Ladies Learning Code is com-mitted to recognizing the diversity of Canada.9 Ladies Learning Code believes that "girls, people with disabilities, Indigenous youth

-+ The common good. Actions should accomplish the greatest good for the greatest number of people.8

and newcomers [should be] given equal opportunity to build our

future." This belief reflects a dominant value of canada as a multi-

cultural country. The approach to diversity is very different in the United States, which considers

itself a melting pot with respect to different cultures. What do you know about the values of

people from other countries? What values make canadians unique'

Unlike personal ity, which is largely genetically determined, values are learned. They are passed down through generations and vary by cultures. As researchers have sought to understand cultural value differences, two important frameworks that have emerged are from Geert Hofstede and the GLOBE studies.

Hofstede's Framework for Assessing Cultures One of the most widely referenced approaches for analyzing variations among cultures was developed in the late 1970s by Geert Hofstede. ID He surveyed more than 116 000 IBM employees in 40 countries about their work-related values, and found that manag- ers and employees vary on five value dimensions of national culture:

• Power distance. Power distance describes the degree to which people in a country accept that power in institu tions and organizations is distributed unequally. A high rating on power distance means that large inequalities of power and wealth exist and are tolerated in the culture, as in a class or caste system that discourages upward mobility. A low power-distance rating charac- terizes societies that stress equal ity and opportunity.

• Individualism vs. collectivism. Individualism is the degree to which people pre- fer to act as individuals rather than as members of groups and bel ieve in indi- vidual rights above all else. Collectivism emphasizes a tight social framework in which people expect others in groups of which they are a part to look after them and protect them.

• Masculinity vs. femininity. Hofstede's construct of masculinity is the degree to which the culture favours trad itional masculine ro les, such as achievement, power, and control, as opposed to viewing men and women as equals. A

f) Describe Hofstede's value dimensions for assessing cultures.

ethics The study of moral values°' principles that guide our behaviour and inform us whether actions are right or wrong.

power distance A national culture attribute that describes the extent to which a society accepts that power in institutions and organizations is distributed unequally.

individualism A national culture attribute that describes the degree to which people prefer to act as individuals rather than as members of groups.

collectivism A national culture attnllute that describes a tight social framewor1< in which people expect oth- ers in groups of which they are a part lo look after them and protect them.

masculinity A national culture attribute that describes the extent to which the culture favours traditional masculine w0<k roles of achievemen~ power, and control. Societal values are characterized by assertiveness and materialism.

84 Part 1 Understanding the Workplace

femininity A national culture attribute that sees little dfferentia- tion between male and female roles; women are treated as the equals of men in all respects.

uncertainty avoidance A national culture attribute that descnbes the extent to which a society feels threat- ened by uncertain and ambiguous situations and tries to avoid them.

long-term orientation A national culture attribute that emphasizes the future, thrift, and tradition.

short-term orientation A national culture attribute that emphasizes the here and now and aocepts change m0<e readily.

indulgence A national culture attribute that emphasizes the gratifi- cation of basic needs and the desire to enjoy life.

restraint A national culture attribute that emphasizes the importance of controlling the gratification of needs.

high masculinity rating indicates the culture has separate ro les for men and women, with men dominating the society. A high femininity rating means the culture sees li ttle d ifferentiation between male and female roles and treats women and men equally in all respects.

• Uncertainty avoidance. The degree to which people in a country prefer structured over unstructured s ituations defines their uncertainty avoidance. In cultures that score high on uncertainty avoidance, people have an increased level of anxi- ety about uncertainty and ambiguity, and use laws and controls to reduce uncer- ta inty. Cultures low on uncertainty avoidance are more accepting of ambiguity and are less ru le-oriented, take more risks, and more readily accept change.

• Long-Lenn vs. short-term orientation. This more recent addition to Hofstede's typology measures a society's long- term devotion to trad itional values. People in a culture with long-term orientation look to the future and value thrift, persistence, and tradition. In a culture with short-term orientation, people value the here and now; they accept change more readily and don't see com- mitments as impediments to change.

More recently, Hofstede has added a sixth dimension, based on studies he has con- ducted over the past 10 years. 11

• Indulgence vs. restraint. This newest addition to Hofstede's typology measures society's devotion ( or lack thereof) to indulgence. Cultures that emphasize indulgence encourage "relatively free gratification of basic and natural human desires related to enjoying life." 12 Those that favour res traint empha- size the need to control the gratification of needs.

How do d ifferent countries score on Hofstede's dimen- sions? Exhibit 3-1 shows the ratings for the countries for which data are ava ilable. For example, power d istance is higher in Malaysia than in any other country. Canada is lied with the Netherlands as one of the top five individualistic countries in the \vorld, falling just behind the United States, Australia, and Great Britain. Canada also tends to be short term in orientation and is low in power distance (people in Canada tend not to accept built-in class differences among

H0';\1 do COUil - tr ies differ in their values'?

people). Canada is also relatively low on uncertainty avoidance, meaning that most adults are relatively tolerant of uncertainty and ambiguity. Canada has a much higher score on masculinity in comparison with Sweden and Norway; although iL~ score is lower than that of the United States. Guatemala is the most colleclivislic nation. The country with the highest mascul inity rank by far is Japan, and the country with the highest femininity rank is Sweden. Greece scores the highest in uncertainty avoidance, while Singapore scores the lowest Hong Kong has one of the longest-term orientations; Pakistan has the shortest-term orientation.

RESEARCH FINDINGS: Hofstede Research across 598 studies with more than 200 000 respondents has investigated the relationship of Hofstede's cultural va lues and a variety of

organizational criteria at both the individual and national levels of analysis.13 Overall, the five original cultural d imensions were found to be equally strong predictors of rel- evant outcomes. The researchers also found that measuring individual scores resulted in much beuer predictions of most outcomes than assigning all people in a country the same cultural values. In sum, th is research suggests that Hof.~tede's value framework may be a valuable way of thinking about differences among people, but we should be cautious about assuming that all people from a country have the same values.

Chapter 3 Values, A tt itudes, and Diversity in the Workplace 8 5

EXHIBIT 3-1 Hofstede's Cultural Values by Nation Long- versus

Individualism Masculinity Uncertainty Short-Term Power Distance versus Collectivism versus Femininity Avoidance Orientation

Country Index Rank Index Rank Index Rank Index Rank Index Rank

Argentina 49 35-36 46 22-23 56 20-21 86 10-15 Australia 36 41 90 2 61 16 51 37 31 22-24

Austria 11 53 55 18 79 2 70 24-25 31 22-24 Belgium 65 20 75 8 54 22 94 ~ 38 18 Brazil 69 14 38 26-27 49 27 76 21-22 65 6 Canada 39 39 80 4-5 52 24 48 41--42 23 30 Chile 63 24-25 23 38 28 46 86 10-15 Colombia 67 17 13 49 64 11-12 80 20 Costa Rica 35 42--44 15 46 21 48--49 86 10-15 Denmark 18 51 74 9 16 50 23 51 46 10 Ecuador 78 8-9 8 52 63 13-14 67 28 El Salvador 66 18-19 19 42 40 40 94 ~ Finland 33 46 63 17 26 47 59 31-32 41 14 France 68 15-16 71 10-11 43 35-36 86 10-15 39 17 Germany 35 42--44 67 15 66 9-10 65 29 31 22-24 Great Britain 35 42--44 89 3 66 9-10 35 47--48 25 28-29 Greece 60 27-28 35 30 57 18-19 112 1 Guatemala 95 2-3 6 53 37 43 101 3 Hong Kong 68 15-16 25 37 57 18-19 29 49-50 96 2 India 77 10-11 48 21 56 20-21 40 45 61 7 Indonesia 78 8-9 14 47--48 46 30-31 48 41--42 Iran 58 29-30 41 24 43 35-36 59 31-32 Irela nd 28 49 70 12 68 7-8 35 47--48 43 13 Israel 13 52 54 19 47 29 81 19 Italy 50 34 76 7 70 4-5 75 23 34 19 Jamaica 45 37 39 25 68 7-8 13 52 Japan 54 33 46 22-23 95 1 92 7 80 4 Korea (South) 60 27-28 18 43 39 41 85 16-17 75 5 Malaysia 104 1 26 36 50 25-26 36 46 Mexico 81 5-6 30 32 69 6 82 18 The Netherlands 38 40 80 4-5 14 51 53 35 44 11-12 New Zealand 22 50 79 6 58 17 49 3~ 30 25-26 Norway 31 47--48 69 13 8 52 50 38 44 11-12 Pakistan 55 32 14 47--48 50 25-26 70 24-25 0 34 Panama 95 2-3 11 51 44 34 86 10-15 Peru 64 21-23 16 45 42 37-38 87 9 Philippines 94 4 32 31 64 11-12 44 44 19 31-32 Portugal 63 24-25 27 33-35 31 45 104 2 30 25-26 Singapore 74 13 20 39--41 48 28 8 53 48 9 South Africa 49 35-36 65 16 63 13-14 49 3~ Spain 57 31 51 20 42 37-38 86 10-15 19 31-32 Sweden 31 47--48 71 10-11 5 53 29 49-50 33 20 Switzerland 34 45 68 14 70 4-5 58 33 40 15-16 Taiwan 58 29-30 17 44 45 32-33 69 26 87 3 Thailand 64 21-23 20 39--41 34 44 64 30 56 8 Turkey 66 18-19 37 28 45 32-33 85 16-17 United States 40 38 91 1 62 15 46 43 29 27 Uruguay 61 26 36 29 38 42 100 4 Venezuela 81 5-6 12 50 73 3 76 21-22 Yugoslavia 76 12 27 33-35 21 48--49 88 8 Regions: Arab countries 80 7 38 26-27 53 23 68 27 East Africa 64 21-23 27 33-35 41 39 52 36 25 28-29 West Africa 77 10-11 20 39--41 46 30-31 54 34 16 33

Scores range from O = extremely low on dimension to 100 = ex1remely high.

Note: 1 = highest rank. LTO ranks: 1 = China; 15-16 = Bangladesh; 21 = Poland; 34 = lowest. Source: Geert Hofstede, Gert Jan Hofstede, Michael Minkov, Cultures and Organizations, Software of the Mind, Third Revised Edition, McGraw- Hill 2010, ISBN 0-07-16641 8-1.

86 Part 1 Understanding the Workplace

9 Identify unique canadian values.

The GLOBE Framework for Assessing Cultures Begun in 1993, the Global Leadership and Organizational Behavior Effectiveness {GLOBE) research program is an ongoing cross-cultural investigation of leadership and national culture. Using data from 825 organizations in 62 countries, the GLOBE team identified nine dimensions on which national cultures d iffer. 14 Some dimensions- such as power distance, individualism/collectivism, uncertainty avoidance, gender d ifferentia- tion (similar to masculinity vs. fem ininity), and future orientation (similar to long-term vs. short-term orientation )- resemble the Hofstede dimensions. The main difference is that the GLOBE framework added dimensions, such as humane orientation ( the degree to which a society rewards individuals for being altruistic, generous, and kind to others) and performance orientation ( the degree to which a society encourages and rewards group members for performance improvement and excellence).

Which framework is bener, Hofstede's or the GLOBE? That is hard to say, and each has its supporters. We give more emphasis to Hofstede's d imensions here because they have s tood the test of lime and the GLOBE study confirmed them. For example, a review of the organizational commitment literature shows that both the Hof.~tede and GLOBE individual ism/collectivism dimensions operated similarly. Specifically, both frameworks showed that organizational commitment (which we discuss later in the chapter) tends to be lower in individual istic coun tries.15 Both frameworks have a great deal in com- mon, and each has something to offer.

Values in the Canadian Workplace Studies have shown that when individua l values align with organizational values, the results are positive. Individuals who have an accurate understanding of the job require- ments and the organization's values adjust better to their jobs and have greater levels of satisfaction and organizational commitment. 16 In addition, shared values between the employee and the organization lead to more positive work attitudes, 17 lower turnover, 18

and greater productivity.19

Individual and organizational values do not always align. Moreover, within organi- zations, individuals can have very different values. 1\vo major factors lead to a poten- tial clash of values in the Canadian workplace: generational differences and cultural d ifferences.

Let's look at the findi ngs and implications of generational and cultural d ifferences in Canada.

Generational Differences Research suggests that generational differences exist in the workplace among the Baby Boomers (born between the mid-1940s and the mid-1960s), Generation Xers (born between the mid-1960s and the late 1970s), and the Millennials (born between 1979 through 1994).20 Exhibit 3-2 highlights the different work values of the three

EXHIBIT 3-2 Dominant Work Values in Today's Workforce

Cohort

Baby Boomers

Entered the Workforce

1965-1985

Approximate Current Age

Mid-40s to mid-60s

Generation 1985-2000 Late 20s to early 40s Xers

Millennials 2000 to present Under 30

Dominant Worl< Values

Success, achievement, ambition, d islike of authority; loyalty to career Work- life balance, team-oriented, d islike of rules; loyalty to relationships

Confident, financial success, self- reliant but team-oriented; loyalty to both sel f and relationships

Chapter 3 Values, A tt itudes, and Diversity in the Workplace 87

When Robert Dutton, former president and CEO of Boucherville, Quebec-based Rona, started working at

the company, senior managers often were his grandfather's age, while he was a young Baby Boomer. After working over 30 years at Rona, Dutton noticed that Millennials were starting to make up a larger portion of Rona's dealers. Dutton started the group Young Rona Business Leaders to help develop the Millennial talent that will be the future of Rona. 21

generations, and indicates when each entered the workforce. Because most people start

working between the ages of 18 and 23, the eras also correlate closely with employee age. Genera tion Xers are squeezed in the workplace between

the much larger Baby Boomer and Mi llennial groups. With Millennials s tarting lo cl imb the ladder in organizations, and Boomers continuing lo hold on lo their jobs rather than retire, the impact of having these two large generations- one younger and one older- in the workplace is gaining atten- tion. Bear in mind that our discussion of these genera tions presents broad generalizations, and you should certainly avoid stereotyping individuals on the basis of these general-

Are i\1illennials really differ-

ent fi·o1n their elders'?

izations. There are individual differences in values. For instance, there is no Jaw that says a Baby Boomer cannot think like a Millennial. Despi te these limitations, values do change

over generations.22 We can gain some useful insights from analyzing values this way to understand how others might view things d ifferently from ourselves, even when they are exposed lo the same situation. The Pain1/Counterpoin1 on page 110 considers whether Mil- lennials have a more inflated view of themselves as compared with their parents.

An understanding that individuals' values differ but tend to reflect the societal values

of the period in which they grew up can be a valuable aid in explaining and predicting behaviour. The change in the demographic composition of the workplace will definitely have an impact. Mi llennials edged out the Baby Boomers to become the largest cohort in the Canadian workplace in 2016. 23

]] RESEARCH FINDINGS: Generational Differences Although it's fascinati ng to th ink about generational values, remember that these classifications Jack solid research support. Early research was plagued

by methodological problems that made it difficul t to assess whether d ifferences actually

88 Part 1 Understanding the Workplace

exist. Reviews suggest many of the generalizations are either overblown or incorrect. 24

Differences across generations often don't support popular conceptions of how genera- tions differ. One study that used an appropriate longitudinal design did find the value placed on leisure has increased over generations from the Baby Boomers to the Millenni- als and work central ity has declined, but research did not find that Millennials had more altru is tic work values.25 Generational classifications may help us understand our own and other generations better, but we must also appreciate their limits. A new generation will be coming to the workplace soon, and researchers suggest that this new generation may be the cause of revolution in the workplace. OB in tile Street looks at Generation Z.

OB IN THE STREET Generation Z: Coming to Your Workplace Soon

Will the next generation of employees be rad ically different from their older sibl ings? Ann Makosinski, just 16 years old and from Victoria, is already trying to start her own company.26 A friend from the Phil ippines was having trouble getting homework done and fa iled a grade because she did not have access to electricity to study at night. Makosinski won Google's annual international science fair in 2013 with her battery-free "Hollow Flashlight: which is powered by body heat.

Makosinski is part of Generation Z, the group that comes after the Mi llennials, and was born starling in 1995. The oldest are in their early 20s and just starling to enter the workplace. Makosinski's cohort is described by researchers as •educated, industrious, collaborative and eager to bui ld a better planet," exactly what she is already doing.

Sparks & Honey, a New York City advertising agency, found that 60 percent of Gen Zers want jobs that have a social impact compared with 31 percent of Millennials. They are the first generation to have digital access from the crib, making them extremely comfortable in that world. Whi le their parents feel anxious abou t how multitasking might affect th inking, Gen Zers see it as a natural action.

It's probably too early to define where Gen Z will go, but Makosinski is representative of her generation thus far. "I'm just very glad I've been ab le to inspire a few people,• she says. "I th ink that's what really changed my life, now I'm more conscious of my actions

: a11d ho·w I spend my time." . ... ... .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. ... . .

Cultural Differences Canada is a multicultural country: In 2011, 20.6 percent of its population was foreign- born.27 It is projected that in 2036 that number will be between 24.S percent and 30 percent.28 This figure compares with 12.9 percent for the United States in 2013.29

In 2011, 46 percent of Toronto's population, 40 percent of Vancouver's population, and 22.6 percent of Montreal's population were made up of immigrants.30Tue 2011 Census found that 20 percent of Canada's population spoke a language o ther than the country's rwo official languages at home. This is expected to increase to between 26.1 percent and 30.6 percent in 2036. In Vancouver and Toronto, th is rate was 31 percent and 32 percent, respectively, so nearly one-third of the population of those rwo cities does not speak either English or French as a first language.31 In Canada, of those who speak other languages, the dominant languages are Punjabi, Chinese (not specified), Cantonese, and Spanish.32These figures indicate the very different cultures that are part of the Canadian fabric of life.

Although we live in a multicultural society, some tension exists among people from different races and ethnic groups. In a recent poll, 25 percent of Canadians reported that they had experienced racism. Hate crimes directed mostly at Muslims, Arabs, and West A~ians rose 5 percent between 2014 and 2015, with 1362 criminal incidents reported.33

Chapter 3 Values, Attitudes, and Diversity in the Workplace 89

Attitudes

The attitudes of management are reflected in how employees handle their jobs.34 The tech

industry is hard on women, and at least at Uber, the sexist attitude of i ts CED bubbled through

the company. In an interview in 2014, then-CED Travis Kalanick referred to Uber as "Boob-er"

because it helped him attract women. It is therefore not surprising that many of his senior

managers ignored women who complained about sexual harassment. Kalanick was forced to

resign in June 2017. In this section we d iscuss how attitudes affect behaviour.

Attitudes are evaluative statements- either positive or negative- about objects, people, or events. They reflect how we feel about something. When I say, · 1 like my job; I am expressing my attitude about work. Typically, researchers have assumed that attitudes have three components: cognition, affect, and behaviour.35 Let's look at each.

The statement •My pay is low• is the cognitive comp onent of an altitude- a description of or belief in the way things are. It sets the stage for the more critical part of an atti tude- its affective component. Affect is the emotional or feeling segment of an attitude and is reflected in the statement "I'm angry over how little I'm paid." Affect can lead to behavioural outcomes. The behavioural component of an attitude describes an intention to behave in a certain way toward someone or something, as in "I'm going to look for another job that pays better."

Viewing attitudes as having three components- cognition, affect, and behaviour- helps us understand their complexity and the potential relationship between altitudes and behaviour. For example, imagine that you realized someone has just treated you unfairly. You are likely to have feelings about that, occurring virtually instantaneously with the realization. Thus, cognition and affect are intertwined.

Exhibit 3-3 illustrates how the three components of an attitude are related. In th is example, an employee did not get a promotion he thought he deserved. The employee's altitude toward his supervisor is illustrated as follows : The employee thought he deserved the promotion (cognition), he strongly d islikes his supervisor ( affect), and he has complained and taken action (behaviour). Although we often th ink cognition causes affect, which then causes behaviour, in reality these compo- nents are difficult to separate.

EXHIBIT 3-3 The Components of an Attitude

-0 Cognitive = evaluation ~ ~ My supervisor gave a promotion ~ to a co-worker who deserved it ~ .. ... 0 .:;

less t han me. My supervisor is unfair .

~ .. ... ::, Negative 0 ·-"' Affective = feeling attitude .. .,: ... ... toward i I dislike my supervisor! -0 supervisor <: .. .: ... ~ ..

Behavioural = action <:' 0 I'm looking for other work; I've ·.: ·- complained about my supervisor <: "' a to anyone w ho would list en.

C, Understand the three components of an attitude.

attitudes Positive or negative feel- ings about objects, people, or events.

cognitive component The opinion or belief segment of an attitude.

affective component The emotional or feeling segment of an attitude.

behavioural component An inten- tion lo behave in a certain way toward someone or something.

9 0 Part 1 Understanding the Workplace

9 Describe key attitudes that affect organiza- tional performance.

0 Summarize the main causes of job satisfaction.

job satisfaction A po5itive feeling about a job resulting from an evalua- tion of its characteristics.

In organizations, attitudes are important because they affect job behaviour.36 Employ- ees may believe, for example, that managers, auditors, and engineers are in a conspiracy lo make them work harder for less money. This may then lead lo a negative altitude toward management when an employee is asked lo stay late lo help on a special project.

Employees may also be negatively affected by the altitudes of their co-workers or cl ients. From Concepts 10 Skills on pages 114- 115 looks al whether it's possible lo change someone's attitude, and how that might happen in the workplace.

A person can have thousands of altitudes, but OB focuses our attention on a limited number of work-related a!litudes that tap positive or negative evaluations that employees hold about aspects of their work environments.37 Next we consider five important atti- tudes that affect organizational performance: job satisfaction, organizational commit- ment, job involvement, perceived organizational support, and employee engagement.

Job Satisfaction When people speak of employee altitudes, they usually mean job satisfaction, a posi- tive feeling about a job resulting from an evaluation of its characterislics.38 A survey conducted by Hays Canada in 2016 found that Canadians are not all that satisfied: 4 7 percent said they were unhappy with their job.39 A person with high job satisfaction holds positive feel ings about the work, whi le a person with low satisfaction holds nega- tive feelings. Because OB researchers give job satisfaction high importance, we will review this altitude in detai l.

What Causes Job Satisfaction? Think about the best job you have ever had. Whal made il great? Chances are you liked the work you did and the people with whom you worked. Interesting jobs tha t pro- vide training, variety, independence, and control satisfy most employees.40 A recent European study indicated that job satisfaction is positively correlated with life satisfaction, in that your attitudes and experiences in life spill over into your job approaches and experiences.41 Exhibit 3-4 shows what jobs people feel provide the worst job satisfaction.

EXHIBIT 3-4 The Worst Jobs for Job Satisfaction•

Full-year income

Newspaper reporter -...,. ,,.........-,--,'___, $36 000

Lumberj ack - ..... ·~=~,.,,. ....... T: ..., S3~ 870 Enlisted military S41 998

I I I Actor l-=:E:':':=l":'=':':II--' Sj7.441ho~r

\.Vhat things affect your job

satisfaction'?

Oil rig worker "==:T:---' $37 640 .: I I I Dairy farmer __ 1

$60 750

Meter reader :.._...., f 36 400 I Mail carrier S53 090

Roofer :___. S3~ 220 I Flight attendant S37 740

0 10 000 20 000 30 000 40 000 50 000 60 000 70 000

·Based on physical demands, work environment, income, stress, and hiring outlook.

Sources: L. Webe<, ' Best and Worst Jobs," Wall Street Journal, April 11 , 2012, In the Garee.Cast.oom Jobs Rated report, p. 86; and K. Kensing, "The Worst Jobs of 2013," GareerCast.com, 2013, http:// www.caree<cast.oomfJ(lbs-rated/worst-jobs-2013.

Chapter 3 Values, A tt itudes, and Diversity in the Workplace 91

EXHIBIT 3-5 Average Job Satisfaction Levels by Facet

100

.. 60 a,

"' ~ c 50 QI v ~

- l 40 -

30 - 20 - 10 - - 0

Work Itself Pay Promotion Supervision Co-workers Overall

The facets of job satisfaction levels can vary widely. As shown in Exhibit 3-5, people have typically been more satisfied with their jobs overall, the work itself, and their super- visors and co-workers than they have been with their pay and promotion opportunities.

The reasons can differ grea lly. Let's discuss some characteristics that likely influence job satisfaction, starting with job conditions.

Job Conditions Generally, interesting jobs that provide training, variety, independence, and control satisfy most employees. Interdependence, feedback, social support, and in teraction with co-workers outside the workplace are also strongly related to job sat- isfaction, even after accounting for characteristics of the work itself.42 As you may have guessed, managers also play a big role in employees' job satisfaction. Employees who feel empowered by their leaders experience higher job satisfaction, one study of a large Hong Kong telecommunications corporation found.43 Research in Israel suggested that a manager's auen tiveness, responsiveness, and suppon increase the employee's job sa tisfaction.44

Thus, job conditions- especially the intrinsic nature of the work itself, social inter- actions, and supervision- are important predictors of job satisfaction. Although each is imponant and their relative value varies across employees, the intrinsic nature of the work is most imponant.45

Personality As imponanL as job conditions are Lo job satisfaction, personality also plays an important role. People who have positive core self-evaluations {CSEs)- who believe in their inner worth and basic competence- are more sa tisfied with their jobs than people with negative CSEs. Additionally, in the context of career commitment, CSE influences job satisfaction as people with high levels of both CSE and career com- mitment may rea lize particularly high job satisfaction.46

Pay You have probably noticed that pay comes up often when people discuss job sa tisfaction. Pay does correlate with job satisfaction and overall happiness for many people, bul the effect can be smaller once an individual reaches a s tandard level of comfortable living. Money does motivate people, as we will discover in Chapter 4. But what motivates us is not necessarily the same as what makes us happy.

I core self-evaluation (CSE) Bottom-line conclusions individuals have about their capabilities, compe- tence. and worth as a person.

92 Part 1 Understanding the Workplace

f) Identify the main consequences of job satisfaction.

organizational citizenship behaviour (OCB) Discretionary behaviour that is not part of an employee's formal job requirements, but that nevertheless promotes the effective functioning of the organization.

Toronto-based Real Food for Real Kids makes food for 15 000 school-aged children each day. Co-found- ers Lulu Cohen-Farnell and David Farnell believe that making sure their employees connect w~h the work that they do increases motivation and reduces turnover of the caterers.

Job Satisfaction and Productivity As several studies have concluded, happy workers are more likely lo be productive workers. Some researchers used to believe the relationship between job satisfaction and job performance was a myth. Bula review of more than 300 studies suggested the correlation between job satisfaction and job performance is qu ite strong, even across in ternational conlexts.47 Ind ividuals with higher job satisfaction perform beuer, and organizations with more satisfied employees tend to be more effective than those with fewer.

Job Satisfaction and Organizational Citizenship Behaviour In Chapter l , we defined organizational citizenship behaviour {OCB) as d iscretionary behaviour that is not part of an employee's formal job requirements, and is not usually rewarded, bul that nevertheless promotes the effective functioning of the organization.48

It seems logical to assume that job satisfaction should be a major determinant of an employee's OCB.49 OCBs include people talking positively about their organizations, helping others, and going beyond the normal expectations of their jobs. Evidence sug- gests job satisfaction is moderately correlated with OCB; people who are more satisfied with their jobs are more likely to engage in cit izenship behaviour.so

Why does job satisfaction lead to OCB1 One reason is trust. Research in 18 countries

suggests that managers reciprocate employees' OCB with trusting behaviours of their own.SI Individuals who feel their co-workers support them are also more likely to engage in helpful behaviours than those who have antagonistic co-worker relationships.s2

Personality mauers, too. Individuals with certa in personality traits (agreeableness and conscientiousness, see Chapter 2) are more satisfied with their work, which in turn leads them to engage in more OCB.s3 Finally; individuals who receive positive feedback on their OCB from their peers are more likely to continue their citizenship activities.s4

Job Satisfaction and Customer Satisfaction As we noted in Chapter l, employees in service jobs often interact with customers. Because service organization managers should be concerned with pleasing customers, it's reasonable to ask: Is employee satisfaction related to positive customer outcomes?

Chapter 3 Values, Att itudes, and Diversity in the Workplace 9 3

IR CANADA@

Service firms like Air Canada understand that satisfied employees increase customer satisfaction and loyalty. As front-line employees who have regular customer contact, the airline's ticket agents are friendly, upbeat, and responsive while greeting passengers and helping them with luggage check-in and seat assignments.

For front-line employees who have regular contact with customers, the answer is yes. Satisfied employees increase customer satisfaction and loyalty.55

A number of companies are acting on this evidence. Online shoe reta iler Zappos is so commilled to finding customer service employees who are satisfied with the job tha t it offers a $2000 bribe to quit the company after training, figuring the least satisfied will take the cash and go.56 Employees are empowered lo "create fun and a Jillie weirdness" and are given unusual discretion in making customers satisfied, and it works: Of the company's more than 24 million customers, 75 percent are repeat buyers. Therefore, for Zappos, employee satisfaction has a direct effect on customer satisfaction.

Life Satisfaction Until now, we have trea ted job satisfaction as if it were separate from life sa tisfaction, bul they may be more rela ted than you think.57 Research in Europe indicated that job satisfaction is positively correlated with li fe satisfaction, and your auitudes and experi- ences in life spill over into your job approaches and experiences.58 Furthermore, life satisfaction decreases when people become unemployed, according to research in Germany, and not just because of the loss of income. 59 For most individuals, work is an important part of life, and therefore it makes sense that our overall happiness depends in no small part on our happiness in our work (our job satisfaction).

How Employees Can Express Dissatisfaction What happens when employees like their jobs, and when they dislike their jobs? One theoretical model- the exit- voice- loyalty- neglect framework- is helpful in under- standing the consequences of dissatisfaction. Exhibit 3-6 illustrates the framework's four responses, which differ along two dimensions: constructive/destructive and active/ passive. The responses are as follows:60

• Exit_ Actively auempting to leave the organization, including looking for a new position as well as resigning. This action is destructive from the point

9 Identify four employee responses to job dissatisfaction.

exit Dissatisfaction expressed by actively attempting to leave the organization.

94 Part 1 Understanding the Workplace

voice Dissatisfaction expressed by actively and constructively attempting to improve oonditions.

loyalty Dissatisfaction expressed by passively waiting for condtions to improve.

neglect Dissatisfaction expressed by passively allowing conditions to worsen.

counterproductive work behaviour (CWB) Actions that actively damage the organization, including stealing, beha~ng aggressively toward co-workers, or being late or absent.

EXHIBIT 3-6 Responses to Job Dissatisfaction

Active

EXIT VOICE

Destructive ------+------- Constructive

NEGLECT LOYALTY

Passive

Source: "When Bureaucrats Get the Blues: Responses to Dissatisfaction among Federal Employees" by Caryl Rusbult, David Lowery. Journal of Applied Soc/at Psychology 15, no. 1, p. 83. Copyright© 1985, John Wiley and Sons.

of view of the organization. Researchers study individual terminations and collective turnover, the total loss to the organization of employee knowledge, skills, ab ilities, and other characterislics.61

• Voice. Actively and constructively auempling to improve conditions, includ- ing suggesting improvements, discussing problems with superiors, and under- taking union activity.

• Loyalty. Passively but optimistically wailing for conditions lo improve, including speaking up for the organization in the face of external criticism and trusting the organization and its management lo •do the right th ing."

• Neglect. Passively allowing conditions to worsen, including chronic absentee- ism or lateness, reduced effort, and increased error rate. This action is destruc- tive from the point of view of the organization.

Exi l and neglect behaviours are linked lo performance variables such as productiv- ity, absenteeism, and turnover. But this model expands employee responses to include voice and loyalty- constructive behaviours that allow individuals lo to lerate unpleasant situations or improve working conditions.

This model helps us understand various situations. For instance, union members often express d issa tisfaction through the grievance procedure or through formal contract negotiations. These voice mechanisms allow them to continue in their jobs while acting to improve the situation. The Ethical Dilemma o n page 112 provides additional ways that employees can voice their views about the ir workplaces.

As helpful as this framework is, it's quite general. We will next address counterpro- ductive work behaviour, a behavioural response to job dissatisfaction.

Counterproduct ive Work Behaviour (CWB) Substance abuse, stealing at work, undue socializing, gossiping, absenteeism, and tardi- ness are examples of behaviours that are destructive to organizations. They are indica- tors of a broader syndrome called counterproductive work behaviour {CWB), also termed deviant behaviour in the workplace, or simply employee withdrawal. 62 Like other behaviours we have discussed, CWB doesn't just happen- the behaviours often

Chapter 3 Values, Att itudes, and Diversity in the Workplace 95

follow negative and sometimes longstanding attitudes. Therefore, if we can identify the predictors of CWB, we may lessen the probability of its effects.

Generally, job dissatisfaction predicts CWB. People who are nol satisfied with their work become frustrated, which lowers their performance63 and makes them more likely to commit CWB.64 Other research suggests that, in addition to vocational misfit (being in the wrong line of work), lack of fit with the organization (working in the wrong kind of organizational culture) also predicts CWBs.65 Our immediate social environ- ment also mailers. One German study suggests that we are influenced toward CWB by the norms of our immediate work environment, such that individuals in teams with high absenteeism are more likely to be absent themselves. 66 CWB can, furthermore, be a response to abusive supervision from managers, which then increases the abuse, s tarting a vicious cycle.67

One important point about CWB is that dissatisfied employees often choose one or more of these specific behaviours due to idiosyncratic factors. One worker might quit. Another might use work time to surf the Internet or take work supplies home for per- sonal use. In short, workers \vho don't like their jobs "get even• in various ways. Because those ways can be quite creative, controlling only one behaviour with policies and pun- ishments leaves the root cause untouched. Employers should seek to correct the source of the problem- the dissatisfaction- rather than try to control the different responses.

According to UK research, sometimes CWB is an emotional reaction lo perceived unfairness, a way to try 10 restore an employee's sense of equity exchange. 68 It therefore has complex ethical implications. For example, is someone who takes a box of markers home from the office for his children acting ethically? Some people consider this steal- ing. Others may want to look at moderating factors such as the employee's contribution to the organization before they decide. Does the person generously give extra time and effort lo the organization, with little thanks or compensation? If so, they might see CWB behaviour as part of an auempl to "even the score."

As a manager, you can take steps lo mitigate CWB. You can poll employee attitudes, for instance, and identify areas for workplace improvement. If there is no vocational fit, the employee will not be fulfilled,69 so you can screen for that. Tailoring tasks so a person's abilities and values can be exercised should increase job satisfaction and reduce CWB.7° Furthermore, creating strong teams, integrating supervisors with them, providing formalized team policies, and introducing team-based incentives may help lower the CWB "contagion• that lowers the standards of the group.7 1

Absenteeism We find a consistent negative relationship between satisfaction and absenteeism, but the relationship is moderate to weak. 72 Generally, when numerous alternative jobs are available, dissatisfied employees have high absence rates, but when there are few alternatives, dissatisfied employees have the same (low) rate of absence as satisfied employees.73 Organizations that provide liberal sick leave benefits are encour- aging all their employees- including those who are highly satisfied- to take days off. You can find work satisfying yet s till want lo enjoy a three-day weekend if those days come free with no penalties.

Turnover The relationship between job satisfaction and turnover is s tronger than between satisfaction and absenteeism.74 Overall, a pattern of lowered job satisfaction is the best predictor of in tent to leave. Turnover has a workplace environment connec- tion too. If the climate within an employee's immediate \vorkplace is one of low job satisfaction leading to turnover, there will be a contagion effect. This suggests manag- ers consider the job satisfaction (and turnover) patterns of co-workers when assigning workers lo a new area.75

The satisfaction- tu rnover relationship is affected by alternative job prospects. If an employee accepts an unsol icited job offer, job dissa tisfaction is less predictive of

96 Part 1 Understanding the Workplace

organizational commitment The degree to which an employee identi- fies with a particular organization and ijs goals, and wishes to maintain membership in the organization.

affective commitment An indi- 1/idual's emotional attachment to and identification wijh an organization, and a belief in ijs values.

normative commitment The obli- gation an individual feels lo stay wijh an organization.

continuance commitment An indil/idual's calculation lo slay with an organization based on the perceived costs of leal/ing lhe organization.

j ob involvement The degree to which a person identifies with a job, actively participates in it, and considers performance important lo sett-worth.

turnover because the employee more likely left in response lo "pull" (the lure of the other job) than •push• (the unattractiveness of the current job). Similarly, job dissatis- faction is more likely to translate into turnover when other employment opportunities are plentiful. Furthermore, when employees have high "human capital" {high educa- tion, high abil ity), job dissatisfaction is more likely to translate into turnover because they have, or perceive, many available ah ernalives.76 Employees' embeddedness- connections to the job and community- can help lower the probability of turnover, particularly in collectivist (group-oriented) cuhures.77 Embedded employees seem less likely to want to consider alternative job prospects.

Organizational Commitment In organizational commitment an employee identifies with a particular organization and its goals, and wishes to remain a member.78 Most research has focused on emo- tional auachment to an organization and belief in its values as the "gold standard" for employee commitment.79

Professor John Meyer at the University of Western Ontario and his co lleagues have identified and developed measures for three types of commitment:80

• Affective commi tment. An individual's emotional auachmenl lo an orga- nization and a belief in its values. For example, a PetSmart employee may be affective ly committed to the company because of ils involvement with animals.

• Normative commitmen t. The obligation an individual feels to stay with an organization for moral or ethical reasons. An employee spearheading a new initiative may remain \vith an employer because she feels she would "leave the employer in the lurch• if she left.

• Continuance commitment. An individual's perceived economic value of remaining with an organization. An employee may be committed to an employer because she is paid well and feels il would hurt her family lo quit.

A positive relationship appears lo exist between organizational commitment and job productivity, but it is a modest one.81 A review of 27 studies found that the relationship between commitment and performance is strongest for new employees, and considerably weaker for more experienced employees.82 Interestingly, research indicates that employees who feel their employers fail lo keep promises to them feel less committed, and these reductions in commitment, in turn, lead to lower levels of creative performance.83 And, as with job involvement, the research evidence demon- strates negative relationships between organizational commitment and both absentee- ism and turnover.84 Read the Ethical Dilemma on page 112 to see how social forums tell both employees and employers about organizational commitment.

Different forms of commitment have different effects on behaviour. One study found manageria l affective commitment was more strongly related to organizational performance than was continuance commitment.85 Another study showed that continu- ance commitment was related to a lower intention to quit bul an increased tendency to be absent and lower job performance. These results make sense in that continuance commitment is not really a commitment at all. Rather than an allegiance (affective commitment) or an obligation (normative commitment) to an employer, a continu- ance commitment describes an employee "tethered" to an employer simply because nothing better is available.86

Job Involvement Related to job satisfaction is job involvement,87 the degree to which people iden- tify psychologically with their job and consider the ir perceived performance level

Chapter 3 Values, Attitudes, and Diversity in the Workplace 97

Developing the talents of women is a strategic diversity imperative for business success at Nissan Motor

Company in Japan. Attracted by Nissan's commitment to equality for women in the workplace and to developing their careers, Li Ning of China decided to join the company after graduating from Tokyo University.

important to their self-worth.88 Employees with high job involvement strongly identify with and really care about the kind of work they do. Another closely related concept is psychological empowerment, or employees' beliefs in the degree lo which they influence their work environment, their competence, the meaningfulness of their job, and their perceived autonomy.89

Research suggests that empo\verment initia tives need to be tailored to des ired behavioural outcomes. Research in Singapore fou nd that good leaders empower their employees by fostering their self-perception of competence- through involving them in decisions, making them feel their work is important, and giving them discretion to "do their own thing:90

Perceived Organizational Support Perceived organizational support {POS) is the degree to which employees believe the organization values their contributions and cares about their well-being. An excellent example is R & D engineer John Greene, whose POS is sky-high because when he was diagnosed with leukemia, CEO Marc Benioff and 350 fellow salesforce. com employees covered all out-of-pocket costs for his care, staying in touch with him throughout his recovery. No doubt stories like this one are part of the reason salesforce.com was number eight of Fortune's 100 Best Companies to Work For list in 2015.91

People perceive their organization as supportive when rewards are deemed fair, when employees have a voice in decisions, and when employees view their supervi- sors as supportive.92 POS is a predictor, but there are some cullural in fluences. POS is important in countries where power distance is lower. In low power-distance countries like Canada, people are more likely to view work as an exchange rather than a moral obl igation, so employees look for reasons to feel supported by their organizations. In high power-distance countries like China, employee POS perceptions are nol as deeply based on demonstrations of fairness, support, and encouragement

psychological empowerment Employees' belief in the degree to which !hey affect their work environment, their competence, lhe meaningfulness of !heir job, and their perceived autooomy in !heir work.

perceived organizational support (POS) The d99ree to which employ- ees believe an organization values their contribution and cares about !heir well-being.

98 Part 1 Understanding the Workplace

employee engagement An indi· vidual's involvement with, satisfaction with, and enthusiasm for the work he or she does.

Employee Engagement Employee engagement is an individual's involvement with, satisfaction with, and enthusiasm for the work he or she does. To evaluate employee engagement, we might ask employees whether they have access to resources and the opportunities to learn new skills, whether they feel their work is important and meaningful, and whether their interactions with co-workers and supervisors are rewarding.93 Highly engaged employees have a passion for their work and feel a deep connection to their company; disengaged employees have essentially •checked out"- putting time but not energy or attention into their work.94 Calgary-based Vista Projects, an engineering procurement and construction management firm, consults wi th its employees for engagement ideas. Doing so has resulted in educational initiatives, opportunities for company owner- ship, and time off for religious holidays.95 To encourage engagement, the president of Charlottetown, PEI-based Holland College visits the college's 13 sites routinely to give employees an opportunity to ra ise concerns.96 Read Case Incident- Job Crafting on pages 112-113 to see how one individual proactively improved her employee engagement.

Engagement becomes a real concern for most organizations because surveys indi- cate that few employees- between 17 percent and 29 percent- are highly engaged by their work. A 2016 survey of Canadians conducted by the Conference Board of Canada found that only 27 percent of employees are highly engaged.97 A 2013 poll by Gallup, conducted in 142 countries, found that only 13 percent of employees worldwide are engaged at work.98 Most are disengaged: 63 percent are not engaged, and 24 percent are actively disengaged. Oakville, Ontario-based Ford Canada recently contracted with Charles "the Buller" MacPherson to help its employees develop more engaged customer service rela tionships, as OB in the Workplace illustrates.

OB IN THE :ii:!.. WORKPLACE Minding Manners, Helping Customers

Can a butler help salespeople engage more with thei r customers? Ford Canada recently hired Charles "the Butler" MacPherson to provide customer service train ing sessions to employees.99 His first s top was Ottawa, and then 23 more Ford locations across Canada.

MacPherson's role is to help employees in Ford's service departments engage more with their customers so that customers receive more personalized service. MacPherson explained why he was comfortable help ing salespeople: "Whether you're serving food or whether you' re presenting someone a proposal on a repair in the car, you s till have to be able to do it in the same way about making sure that you're at ease, that we're listening to you, that you're able to speak your thoughts."

Ford Canada's national consumer experience manager, Gemma Giovinazzo, is enthusiastic about developing more engaged employees. "We know, based on statistical research, that a highly engaged employee will lead to a highly engaged customer. Highly engaged employees will bend over backwards for the company and its customers. In such a culture, there is no 'this is just my job; I am only going to do that:•

Ford believes its investment in employees will also lead to more loyal customers . .... .

Engagement levels determine many measurable outcomes. A s tudy of nearly 8000 business units in 36 companies found that units whose employees reported high- average levels of engagement achieved higher levels of customer satisfaction, were more productive, brought in higher profits, and experienced lower levels of turnover and

Chapter 3 Values, Attitudes, and Diversity in the Workplace 99

accidents than at other business units. JOO Molson Coors, for example, found engaged employees were five times Jess likely to have safety incidents, and when an accident did occur it was much Jess serious and less costly for the engaged employee than for a disengaged one ($63 per incident versus $392). Caterpillar set out to increase employee engagement and recorded a resu lting 80 percent drop in grievances and a 34 percent increase in highly satisfied customers. 101

Promising find ings have earned employee engagement a following in many business organizations and management consulting firms. However, the concept generates active debate about its usefu lness, partly because of difficulty in identifying what creates job engagement The two top reasons for job engagement that participants in one study gave recently were ( 1) having a good manager they enjoy working for and (2) feeling appreciated by their supervisor. 102 Ho\vever, most of their other reasons didn' t relate to the job engagement construct. w3 Another s tudy in Australia found that emotional intelligence is linked to employee engagement. 104 Other research suggested that engage- ment fluctuates partially due lo da ily challenges and demands. JOS

One review of the job engagement literature concluded, "The meaning of employee engagement is ambiguous among both academic researchers and among practitioners who use it in conversations with clients." Another reviewer called engagement "an umbrella term for whatever one wants it to be."I06 Research on engagement has set out to identify the dimensions of employee engagement, but the debate is far from settled. For now, we can see that job engagement, in its various incarnations, yields important organiza tional outcomes.

Some cri tics note that engagement may have a "dark side; as evidenced by positive relationships between engagement and work- fami ly confl ict. 107 Individuals might grow so engaged in their work roles that family responsibil ities become an unwelcome intru- sion. Further research exploring how engagement relates to these negative outcomes may help clarify whether some highly engaged employees might be getting •too much of a good th ing."

Managing Diversity in the Workplace

I In the spring of 2017, CBC News decided to find out how much diversity there really is within the technology sector.108 it asked 31 canadian tech companies about their data-gathering process regarding employee diversity and whether the companies would share their data. Two companies agreed to share data: Clearpath Robotics and Wealthsimple, an investing app. Toronto-based

Hubba said it was in the process of collecting data.

Judging from CBC News' findings, it is not surprising that diversity is not handled well in tech companies. If companies do not collect statistics on their employees to help man-

agement understand diversity issues, it's hard to know whether improvement is needed.

Diversity consultants suggest that collecting data is not enough, however. "Reports done well should be part of a company's larger diversity and inclusion strategy-one that, like

any problem a business faces, requires data so that it can be understood and goals can be

set for improvement." Ladies Learning Code expects to be a part of the solution for the tech industry's low diversity

numbers. The company has at least one chapter in every province, and in six years it has run

904 workshops that in total have reached more than 21 000 adult learners and more than 19 000 youth learners. The workshops are starting to make a difference, "(flrom the woman

who completely reinvented her career through our programs, to the young girl who created a game for her visually impaired sister when there were none, to the teen who aced her AP CS

class and is now on her way to university to major in computer science."

In this section we discuss why managing diversity well matters.

Although much has been said abou t diversity in age, race, gender, ethnicity, religion, and disabi lity status, experts now recognize tha t these demographic characteristics are

1 00 Part 1 Understanding the Workplace

0 Describe how organiza- tions can manage diver· sity effectively.

surface-level diversity Differ- ences in easily perceived character- istics, such as gender, race, ethnicity, age,°' disability, that do not neces- sarily reflect the ways people lhink or feel but that may activate certain stereotypes.

deep-level diversity Differences in values, personality, and work prefer- ences lhat become progressively more important for determining similarity as people get to know one another better.

jusl the tip of the iceberg. rn9 Demographics mostly reflect sur face-level d iversity, not thoughts and feel ings, and can lead employees to perceive one another through stereotypes and assumptions. However, evidence has shown that people are less con- cerned about demographic differences if they see themselves as sharing more important characteristics, such as personality and va lues, that represent deep-level diversity. 110

To understand the difference between surface- and deep-level diversity, consider an example. Luis and Carol are managers who seem lo have little in common. Luis is a young, recently hired male from a Punjabi-speaking neighbourhood in Vancouver with a business degree. Carol is an older woman from rural Alberta who started as a customer service trainee after secondary school and worked her way up the hierarchy. Al first, these co-workers may no tice their surface-level differences in education, ethnicity, regional background, and gender. However, as they gel lo know one another, they may find they are both deeply commilled to their families, share a common way of th ink- ing about important work problems, like to work collaboratively, and are interested in international assignments. These deep-level s imilarities can overshadow the more superficial differences between them, and research suggests they will work well together.

Many organizations have auempted lo incorporate workforce diversity in itiatives into their workplaces lo improve relations among co-workers. Toronto-based Corus Entertainment is one such company. Corus' policy on diversity states the following:

Corus is committed to promoting an equitable work environment based on the merit principle. Corus is also committed lo conducting business and provid- ing services in the communities where we operate in a manner that respects the dignity and independence of all employees and customers, including those with varying abil ities.

Our collective commitment to respect and nurture a diverse and accessible work environment promotes Accountabi lity, Innovation, Initiative, Teamwork and Knowledge across the organizalion. 111

Corus' statement on diversity is typ ical of statements found in company annual reports and employee information packets to s ignal corporate values to those who interact with the company. Some corporations choose to signal the value of diversity because they think it is an important strategic goal. Other organizations recognize that the purchasing power of diverse groups is substantial.

When companies design and then publicize statements abou t the importance of diversity, they are essentially producing value statements. The hope, of course, is that the s tatements will influence the behaviour of members of the organization, particularly s ince preference for people who are ethnically like ourselves may be ingrained in us a t an early age. For example, researchers from Concordia University and the University of Montreal found that A~ian Canadian and French Canadian preschoolers preferred to interact with kids of their own ethnic group.11 2

Little research indicates that values can be changed successfully. Because values tend to be re latively stable, workplaces try lo address diversity issues through education aimed at changing altitudes. See Case Incident- Walking the Walk on pages 113-114 to learn about diversity at Google.

Effective Diversity Programs Joan Vogelesang, who \Vas CEO of Montreal-based animation software company Toon Boom, says that Canadian companies don't make use of the diversity in the employees they have. She thinks Canadian companies need to look beyond imperfect English and cultural customs when hiring. When she worked at Toon Boom, most of her executive team were first-generation immigrants. Her employees could speak 20 languages among them. "Tuo . . . staff members [could! speak Japanese. You can hardly do business in Japan if you don't speak ii; she says.113

Chapter 3 Values, Attitudes, and Diversity in the Workplace 101

1' 0 )1 ~ CAREER OBJECTIVES

I ~ Is It Okay to Be Gay at Work? I'm gay, but no o ne at my work- place knows it . How much should I be will ing to t ell? I want t o be sure to have a shot at t he big posi- tions in t he firm.

-Ryan

Dear Ryan: Unfortunately, you are right to be con- cerned. Here are some suggestions:

• Look for an inclusive company cul- ture. Apple CEO Tim Cook said, "I've had the good fortune to work at a company that loves creativity and innovation and knows it can only flourish when you embrace people's differences. Not every- one is so lucky." Recent research has focused on discovering new methods to counteract a dis- crimination culture in the United States, the United Kingdom, and Australia.

• Choose your moral ground. Do you feel you have a responsibility to "come out" to help effect social change? Do you have a right to keep your private life private? The balance is a private decision. A recent study by the US Human Rights Campaign indicated that only half of LGBT employees nationwide disclose their status.

• Consider your future in top man- agement. Corporate-level lead- ers are urged to be open with peers and employees. As Ernst & Young global vice chairperson Beth Brooke said about her decades of staying closeted, the pressure to be "authentic" adds stress if you are keeping your gay status a secret.

• Weigh your options. The word from people at the top who are gay (some who have come out and others who have not) is mixed. Brooke said, "Life really did get better" after she announced her status in a company- sponsored video. Mark Stephanz, a vice chairman at Bank of America Merrill Lynch, agreed, remarking that "most people still deal with you the same way they always do." Yet Deena Fidas, deputy director for the largest LGBT civil rights group in the United States, reported that being gay in the workplace is still "far from being a 'nonissue.'"

• Be aware of international and national laws. Sadly, some nations and states are intolerant. You will

need to study the laws to be sure you will be safe from repercussions when you reveal your status.

So, think about your decision from both an ethical and a self-interested

Vogelesang's description of diversity as a compelilive

point of view. Your timing depends not only on what you think are your ethical responsibilities, but also on your con- text-where you work, the culture of your organization, and the support of the people within it. Thankfully, globaliza- tion is ensuring that the world becomes increasingly accepting and fair.

Good luck in your career!

Sources: M. D. Birtel. • 'Treating' Prejudice: An Exposure-Therapy Approach to Reducing Neg- ative Reactions Toward Stigmatized Groups," Psychological Science (November 2012): 1379- 86; L Cooper and J. Raspanti, "The Cost of the Closet and the Rewards of Inclusion,' Human Rights Gampalgn report (May 2014), http://hrc· assets.s3-website-us-east-1.amazonaws.oom/ I files/assets/resources/Cost_of_the_Closet_ May2014.pdf; N. Rumens and J. Broomfield. •Gay Men in the Police: Identity Disclosure and Management Issues," Human Resource Management Journal (July 2012): 283-98; and A. M Ryan and J. L Wessel, •Sexual Orienta- tion Harassment In the Workplace: When Do Obse,vers Intervene?" Journal of Organizational Behavior (May 2012): 488-509.

The opinions provided here are of the manag- ers and authors only and do not necessarHy reflect those of their organizations. The authors or managers are not responsible for any errors or omissions, or for the results obtained from the use of this Information. In no event will the authors or managers, or their related partner- ships or corporations thereof, be liable to you or anyone else for any decision made or action taken in re/lance on the opinions provided here.

advantage speaks lo Lhe need for a variety o f d iversity programs in recruiting and selection policies, as well as training and development practices.

1\ re you comfortable

Effective, comprehensive workforce programs encour- aging diversity have lhree dislincl components. Firsl, lhey leach employees about Lhe legal framework for equal employment opportunity and encourage fair lrealmenl of all people, regardless of their demographic characteristics.

\·vorking ,Yith people rro1n

other cultures·?

Second, lhey leach employees how a diverse workforce will be beller able lo serve a diverse market of customers and clients. Third, lhey foster personal development prac- tices lhal bring out lhe skills and abil ities of all workers, acknowledging how differences

1 02 Part 1 Understanding the Workplace

protected groups The four groups designated by the Employment Equity Act as the beneficiaries of employ- ment equity ~·romen, people with dis- abilities, Aboriginal people, and visible minorities).

in perspective can be a valuable way to improve performance for everyone. 114 A study by researchers at the University of Toronto Scarborough found that focusing on the positive benefits of diversity, rather than tell ing people what they should and should not do, was more likely to reduce people's prejudices toward o ther groups. 115 The Experiential Exercise on page 111 considers what it feels like to be targeted or excluded based on demographic s tatus.

Most negative reactions lo employment discrimination are based on the idea that discriminatory lreatment is unfair. Regardless of race or gender, people are generally in favour of diversity-oriented programs if they bel ieve the pol icies ensure everyone has a fair opportunity lo show their skills and abilities.

Organizational leaders should examine their workforce to determine whether the protected groups covered by Canada's Employment Equity Act (women, people with disabilities, Aboriginal people, and visib le minorities) have been underutilized. If groups of employees are nol proportionally represented in top management, managers should look for any hidden barriers to advancement They can often improve recru it- ing practices, make selection systems more transparent, and provide training for those employees who have not had adequate exposure to necessary work-related experiences in the past Exhibit 3-7 presents examples of what some of the leading companies are

doing as part of their diversity initiatives. Management should also clearly communicate the company's diversity policies and

their rationale to employees so they can understand how and why certain practices are followed. Communications should focus as much as possible on qualifications and job performance; emphasizing that certain groups need more assistance could well backfire.

To ensure the top-level management team represents the diversity of its workforce and client base, Safeway implemented the Retai l Leadership Development (RLD) pro- gram, a formal career development program. This program is open lo all employees, so it is inclusive, but women and underrepresented racial or ethnic groups are particularly

-----------i:r-...------·""l'r1111~• .. •- ""# 1_ ~· ~, foundation ~" .....

Toronto-based AccessNow founder Maayan Ziv speaks up about the need for more diversity in the tech- nology sector. AccessNow lets its users know whether buildings are accessible throughout many places in the world. She says that when she builds events, she want them to be indusive, and asks herself about that: "Is it inclusive? Is the messaging inclusive? Does it support other people's perspectives being brought to the table?" Ziv believes that having people surrounded with people who are d ifferent than themselves helps improve the perspectives that can be shared.11 6

Chapter 3 Values, Attitudes, and Diversity in the Workplace 103

EXHIBIT 3-7 Practices Used by a Selected Sample of Canada's Most Welcoming Places to Work, 2017

Company Number of (Location) Industry Employees Diversity Activities

Jazz Aviation Aviation 4266 Has an LGBTA employee resource group and (Dartmouth, NS) launched a Safe Space campaign to promote an

inclusive work environment

Cameco Corp. Mining 3040 Works with Women in Mining and the Mining Human (Saskatoon) Resource Council to research employment barriers

faced by women in the mining industry

Telus (Vancouver) Telecommunications 23328 Maintains "Eagles," a dedicated resource group to provide professional development and networking opportunities for Indigenous employees

CIBC (Toronto) Commercial bank 36 215 Updated its board of directors' goal for the representation of women to no less than 30 percent

Manitoba Hydro Hydroelectric 6001 Provides work placements to grade 12 high school (Winnipeg) power generation students with intellectual disabilities

Ontario Public Government 62080 Launched the Accessibility@Source campaign to Service (OPS) support help staff integrate accessibility considerations into (Toronto) everything they do

Sodexo Canada Food services 5961 Offers internships to Vancouver Community College (Burlington, ON) students with intellectual disabilities, in partnership

with the Vancouver School Board's Life Skills Program

Northwest Government 5950 Established a Diversity and Inclusion Unit, composed Territories services of a manager of diversity and inclusion, an Indigenous Government HR specialist, and two workforce diversity officers (Yellowknife)

Agrium Inc. Agricultural 3440 Piloted a Women's Leadership Development program (Calgary) products to develop women candidates with high potential for

and fertilizer senior management positions manufacturing

Source: Based on D. Jermyn, "Canada's Best Diversity Employers," March 28, 2017, https://www.theglobeandmail.com/report-on-business/ careers/lop-employers/canadas-best-diversity-employers-welcome-new-voices/artlcle34434138/.

encouraged lo participa te. Interested individuals take tests lo determine whether they

have management potenti al. Safeway managers are charged with providing promising

RLD parti cipants with additional training and development opportuniti es to ensure they

have the skills needed for advancement, and are given performance bonuses if they meet

concrete diversity goals. The RLD program has increased the number of white women

store managers by 31 percent since its inception, and the number of women-of-co lour

store managers by 92 percent. 117 OB in the Street l ooks at what corporate boards in Canada can do to recruit more diverse members.

Just because a company's managers value diversity does not mean that all employees

will share that value. Consequently, even if they are requ ired lo attend d iversity training,

employees may exhibit negative attitudes toward individuals because of their gender or

ethnicity. Additionally, what atti tudes are appropriately displayed outside of the work-

p lace may be questioned by some employers.

Cultural Intelligence Consider the cases of an I talian COO who can't motivate h is Indian employees al a

technology company in Mumbai, an Israeli consultant in the US having d ifficul ty giving

Q) Identify the benefits of cultural intelligence.

1 04 Part 1 Understanding the Workplace

cultural intelligence (CO.) The ability to understand someone's unfa- miliar and ambiguous gestures in the same way as would people from that person's culture.

Why should corporate boards pay more attention to diversity? The Canadian Board Diver- sity Council together with KPMG recently published a study on the boards of 450 of the Financial Post 500 (FP500) companies. 118 The study found that women held 15 percent of board seats on the FP500 companies; visible minorities held 5.3 percent; persons with disab ilities held 2.9 percent; and Aboriginal people ( including First Nations, Inuit, and Melis) held 8 percent. With the exception of Aboriginal representation, the numbers were far fewer than the representation of these categories in society at large. Pamela Jeffery, founder and president of the council, called the results •disappointing."

Does the lack of diversity hurt the bottom line7 Accounting firm Ernst & Young found that the lack of diversity on boards can make it difficult for companies to innovate. Directors who sat on FP500 boards that had more women, visible minorities, or Aboriginal d iversity believed that the boards made better decisions because the diversity led to better discussions with more perspectives. Board members expressed some frustration about finding new direc- tors and reported that "their own networks are almost exclusively made up of white men."

The council does not favour using quotas to change the situation. Instead, it recom- mends that with the large wave of retirements from boards expected in the next several years, FP500 boards should use rigorous, transparent recru iting processes "to replace

: one of every three retiring directors with a d irector of a diverse background.• ..... . . .

feedback, and a Korean software firm CEO working in Shanghai who cannot reta in his Chinese employees. The Italian COO knows his Indian employees expect a more authoritarian style than he is used to; the Israel i knows her feedback should be softer, rather than so blun t; and the Korean knows that Chinese bosses are more paternal istic than Korean ones. That is because they have cultural intelligence.119

Management professors Christopher Earley of the London School of Business and Elaine Mosakowski of the University of Colorado at Boulder introduced the idea of cultural in telligence {CQ) to suggest that people vary in how they deal with other cultures. CQ is defined as "the seemingly natural ab ility to interpret someone's unfa- miliar and ambiguous gestures in just the way that person's compatriots and colleagues would, even to mirror them." 120

Earley and Mosakowski suggest that CQ "picks up where emotional inte ll igence leaves off." Those with CQ try to figure out whether a person's behaviour is representa- tive of all members of a group or just that person. Thus, for example, a person with high CQ who encounters two German engineers would be able to determine which aspects of the engineers' conduct are explained by the fact of being an engineer, by being Ger- man, or by behaviour that is simply particular to the individual. A recent study found tha t CQ is particularly helpful to expatriates on in ternational assignment because the ab ility to be confident about and interested in being in new cultural environments makes it easier to adjust to the demands of foreign assignments. 121

]] RESEARCH FINDINGS: Cultural Intell igence According to researchers, "cultural intell igence resides in the body !the physical) and the heart [the emotional/motivational), as well as the head lthe

cognitive).• 122 Individuals who have high cognitive CQ look for clues to help them identify a culture's shared understandings. Specifically, an individual does this by looking for consistencies in behaviours across a variety of people from the same cultural background. Individuals with high physical CQ learn the customs and gestures of those from other cul- tures and therefore act more like them. This increases understanding, trust, and openness

Chapt er 3 Values, Attitudes, and Diversity in the Workplace 105

among people of different cultures. O ne study foun d that job cand idates who used some

of the mannerisms of recru iters who had different cultural backgroun ds from themselves

were more l ikel y to receive job offers than those who did not do so.123 Those with h igh

emotional/motivational CQ believe that they are capable of understanding people from other cultures, and w ill keep trying to do so, even if faced w ith difficulties in doing so.

Based on their research, Earley and Mosakowski have discovered that most managers fall in to the following CQ profiles: 124

• Provincial. They work b est with people of similar background, but have diffi - cu lties working w ith those from different backgrounds.

• Analyst. They analyze a foreign culture's rules and expectati ons to figure out how to interact w ith o thers.

• Natural. They use intuition rather than systematic study lo understand those from other cultural backgrounds.

• Ambassador. They communicate convincingly that they fit i n, even i f they do not know much about the foreign culture.

• Mimic. They control actions and b ehaviours to match others, even if they do not understand the significance of the cultural cues observed.

• Chanieleon. They have high levels of all three CQ components. They could be m istaken as being from the foreign culture. According to research, onl y about

5 percent of managers fi t this profi le.

Exhib it 3-8 can help you assess your own CQ.

EXHIBIT 3-8 Measuring Your Cultural Intelligence

Rate the extent to which you agree with each statement, using the following scale:

1 = strongly disagree 2 = disagree 3 = neutral 4 = agree 5 = strongly agree

__ Before I interact with people from a new culture, I ask myself what I hope to achieve. __ If I encounter something unexpected while working in a new culture, I use this experience to figure out new ways

to approach other cultures in the future. __ I plan how I'm going to relate to people from a different culture before I meet them. __ When I come into a new cultural situation, I can immediately sense whether something is going well or something is wrong.

Total + 4 = Cognitive CQ

__ It's easy for me to change my body language (for example, eye contact or posture) to suit people from a different a.ilture. __ I can alter my expression when a cultural encounter requires it. __ I modify my speech style (for example, accent or tone) to suit people from a different culture. __ I easily change the way I act when a cross-cultural encounter seems to require it.

Total + 4 = Physical CQ

__ I have confidence that I can deal well with people from a different culture. __ I am certain that I can befriend people whose cultural backgrounds are different from mine. __ I can adapt to the lifestyle of a different culture with relative ease. __ I am confident that I can deal with a cultural situation that is unfamiliar.

Total + 4 = Emotional/motivational CQ

Interpretation: Generally, an average of less than 3 would indicate an area calling for improvement, while an average of greater than 4 .5 reflects a true CO strength.

Sourr:e: P. C. Earley and E. Mosakowski, "Cultural Intelligence; Harvard Business Review 82, no. 1 O {October 2004), pp. 139-146. Reprinted by permission of Harvard Business Review.

106 Part 1 Understanding the Workplace

cultural code-switching The ability to modify beha'liour in specttic situations to accommodate varying cultural norms.

Cultural intell igence may not be enough, however. Remember the Italian COO, the Israel i consultant, and the Korean CEO from the start of this section? Recent research suggests that they lack cultural code-switching- "the ability to modify behaviour in specific situations to accommodate varying cul tural norms."125 ll can be difficult to act against the norms you're accustomed to when acting in new environments. Being culturally fl uent means being able to learn the norms of the new environment and to feel comfortable applying them.

{i» ~~~!~~ n~~~e~~~~!il~~e~e covered in this chapter, we review only ~/ three in terms of their application beyond Canada and the United States.

First, we consider whether job satisfaction is simply a US concept. Second, we examine whether employees in Western cultures are more satisfied with their jobs than people from other cultures. Finally, we look at international differences in how diversity is managed.

Is Job Satisfaction a North American Concept? Most of the research on job satisfaction has been conducted in the Uni ted States and Canada. So, is job satisfaction just relevant to those countries? The evidence strongly suggests it is not; people in other cultures can and do form judgments of job satisfaction. Moreover, similar factors seem to cause, and resu lt from, job satisfaction across cultures: We noted earl ier that pay is positively, but relatively weakly, rela ted to job satisfaction. This relationship appears to hold in other industrialized nations as well.

Are Employees in Western Cultures More Satisfied with Their Jobs? There are some cultural differences in job satisfaction. Exhibit 3-9 provides the results of a global s tudy of job satisfaction levels of employees in 15 countries, with the high- est levels in Mexico and Switzerland. Do employees in these cul tures have better jobs? Or are they simply more positive (and less self-critical)? Conversely, the lowest score in

EXHIBIT 3-9 Average Levels of Employee Job Satisfaction by Country

6.00 ~------------------------ 5.88

Source: Based on J. H. Westover, "The Impact o f Comparative State-Directed Development on Worki1g Cond~ions and Employee Satisfaction," Journal of Management & Organization, July 2012, pp. 537-554.

Chapt er 3 Values, Attitudes, and Diversity in the Workplace 1 07

the study was for South Korea. Autonomy is low in South Korea, and businesses tend to be rigidly hierarchical. Do these factors make for low job satisfaction?126 ll is d ifficult to d iscern all the factors influencing the scores, but considering how businesses are responding to changes brought on by globalization may give us clues.

The amount of exposure the culture gets to diverse ways of life may affect job sat- isfaction in South Korea. The country has the highest percentage of wireless Internet broadband subscrip tions of any country ( 100 percent, or 100 subscriptions per every 100 people), which indicates that people have access to worldwide contemporary busi- ness practices. South Korean employees may therefore know about autonomy, merit- based rewards, and benefi ts for workers in other countries that are unavai lable to them. In contrast, Mexico, which has one of the highest job sa tisfaction scores, has the lowest percentage of Internet subscriptions {7.7 percent).127 The higher job satisfaction rate in Mexico could still indicate that it has better jobs or that employees are more satisfied in lesser jobs because there is not as much opportunity for exposure to outside contempo- rary influences. As you can see, higher job satisfaction may somewhat reflect employee acceptance of the culture's business practices, whether the practices are traditional or cuning-edge. There are also many other potential contributing factors.

Does organizational commitment vary cross-nationally? A recent study explored this question and compared the organizational commilrnent of Chinese employees with that of Canadian and South Korean employees.128 Allhough results revealed that the three types of commitment- normative, affective, and continuance- are present in all three cultures, they differ in importance. In addition, the study found that Canadians and South Koreans are closer to each other in values than either is with the Chinese. Norma- tive commitment ( an obligation to remain with an organization for moral or eth ical reasons) and affective commitment ( an emotional allachmenl lo the organization and bel ief in its values) were highest among Chinese employees. Continuance commitment ( the perceived economic va lue of remaining with an organization) was lower among Chinese employees than among Canadian, Bri tish, and South Korean employees.

Is Diversity Managed Differently across Cultures? Besides the mere presence of diversity in international work settings, international d if- ferences exist in how diversity is managed. Each country has ils own legal framework for deal ing with diversity, and these frameworks are a powerful reflection of the diversity- related concerns of each country. Many countries require specific targets and quotas for achieving employment equity goals, whereas the legal framework in Canada specifi- cally forbids their use. The types of demographic differences considered important for d iversity management also vary across countries. For example, South Africa protects blacks through the Equal Employment Act; China has "preferential pol icies" that require ethnic minorities and women be appointed to top government positions; Israel has a class-based pol icy lo promote women, Arabs, blacks, and people with disabi lities; India has a pol icy of reservation lo reserve jobs for underrepresented castes; Sri Lanka has the Standardization pol icy to help those in areas with lower rates of education; Malaysia's New Economic Policy {NEP) provides advantage for the majority group, the Malays, who have lower income; Germany's Basic Law has an affirmative action plan for women and those with handicaps; and Russia has quotas for women and ethnic minorities. - Summary Why is it important to know an individual's values? Values often underlie and explain altitudes, behaviours, and perceptions. Values tend to vary internationally along dimen- sions that can predict organizational outcomes; however, an individual may or may no t hold values that are consistent with the values of the national culture.

LESSONS LEARNED

• Values represent basic convic- tions abou t what is impor- tant, right, and good.

• Attitudes tend to predict behaviours.

• Job satisfaction leads to better performance.

1 08 Part 1 Understanding the Workplace

Mylab Management

Managers should be interested in their employees' attitudes because altitudes in flu- ence behaviour and indicate potential problems. Creating a satisfied workforce is hardly a guarantee of successful organizational performance, but evidence s trongly suggests that managers' efforts to improve employee aui tudes will likely resul t in positive out- comes, including greater organizational effectiveness, high customer satisfaction, and increased profits.

Diversity management must be an ongoing commitment that crosses all levels of the organization. Policies lo improve the cl imate for diversity can be effective, so long as they are designed to acknowledge all employees' perspectives.

SNAPSHOT SUMMARY

Values Values in the Canadian • Perceived Organizational

• Rokeach Value Survey Workplace Support

• Hodgson's General Moral • Generational Differences • Employee Engagement

Principles • Cultural Differences Managing Diversity in the

Assessing Cultural Values Attitudes Workplace

• Hofstede's Framework for • Job Satisfaction • Effective Diversity Programs Assessing Cultures • Organizational Commitment • Cultural Intelligence

• The GLOBE Framework for • Job Involvement Assessing Cultures

Study, practise, and explore real business situations with these helpful resources:

• Study Plan: Check your understanding of chapter concepts with sett-study quizzes.

• Online Lesson Presentations: Study key chapter topics and work through interactive assessments to test your knowledge and master management ooncepts.

• Videos: Learn more about the management practices and strategies of real companies.

• Simulations: Practise management decision-making in simulated business environments.

.,. for Review

1. What is the difference between Rokeach's terminal and instru- mental values?

2. What are Hofstede's value dimensions for assessing

cultures?

3. What values are unique to Canadian culture?

4. What are the three components of an attitude? Are these com- ponents related or unrelated?

5. What are the key attitudes that affect organizational perfor- mance? In what ways are these attitudes alike? What is unique

about each?

6. What causes job satisfaction? For most people, is pay or the work itself more important?

7. What outcomes does job sat- isfaction influence? What impli· cations do the consequences of job satisfaction have for management?

8. What are the four employee responses to job dissatisfaction?

9. How can organizations manage diversity effectively?

10. What are the benefits of cultural intelligence?

for Managers

• Of the major job attitudes - job satisfaction, job involvement, organizational commitment, per- ceived organizational support (POS), and employee engage- ment- remember that an employ- ee's job satisfaction level is the best single predictor of behaviour.

• Pay attention to your employees' job satisfaction levels as deter- minants of their performance, turnover, absenteeism, and with· drawal behaviours.

• Measure employee job attitudes objectively and at regular intervals in order to determine how employ- ees are reacting to their work.

• To raise employee job satisfac- tion, evaluate the fit between the employee's work interests and the intrinsic par1s of the job, then cre- ate work that is challenging and interesting to the employee.

• Consider the fact that high pay alone is unlikely to create a satis- fying work environment.

• Understand your organization's anti-dscrimination policies thor- oughly and share them with your employees.

• Look beyond readily observable biographical characteristics and consider the individual's capabili- ties before making management decisions; remain open and encouraging for individuals to dis- close any hidden disabilities.

• Fully evaluate what accommoda- tions a person with disabilities will need and then fine-tune a job to that person's abilities.

• Seek to understand and respect the unique biographical charac- teristics of each employee; a fair but individual-oriented approach yields the best performance.

for You

• You will encounter many people who have values different from yours in the classroom and in various kinds of activities in which you participate, as well as in the workplace. Try to understand value differences, and to figure out ways to work positively with people who are different from you.

• We indicated that a moderate number of Canadians are very satisfied with their jobs, and we mentioned the sources of some of the satisfactions. We also identified some of the reasons people are dissatisfied with their jobs. This information may help you understand your own feelings about whether you are satisfied w ith your job.

• You may be able to use some of the information on attitudes to think about how to better work w ith people from different cul - lures. An understanding of how cultures differ may provide insight when you observe people doing things differently from the way you

do them.

0 ICll:I

"' -

11 O Part 1 Understanding the Workplace

-"' CCI 0

MILLENNIALS HAVE INFLATED IMAGES OF THEMSELVES COMPARED TO THEIR PARENTS

POI NT Millennials have some great virtues: As a group, they are

technologically savvy, socially tolerant, and engaged. l29

They value their quality of life as equal to their career,

seeking a balance between home and work. In these

ways, Millennials surpass their Baby Boomer parents,

who are less technologically adept, less tolerant, more localized, and who have a history of striving to get ahead

at all costs.

Several large-scale, longitudinal studies found Mil-

lennials are more likely than Baby Boomers to have

seemingly inflated views of themselves. More Millenni- als rate themselves as above average on attributes such

as academic ability, leadership, public-speaking abil-

ity, and writing ability. Millennials are also more likely to

agree they would be •very good" spouses (56 percent,

compared to 37 percent among 1980 graduates), par-

ents (54 percent; 36 percent for 1980 graduates), and employees (65 percent; 49 percent for 1980 graduates).

Cliff Zukin, a senior faculty fellow at Rutgers Univer-

sity, believes the reason is in the childhood upbringing

of Millennials. "This is the most affirmed generation in

history,• he says. "They were raised believing they could

do anything they wanted to, and that they have skills and talents to bring to a job setting." Jean M. Twenge, author

of Generation Me, agrees. "People were not saying, 'Believe in yourself' and 'You are special' in the '60s."

Narcissism is bad for society, and particularly bad

for the workplace. "[Narcissists] tend to be very self- absorbed; they value fun in their personal and their work

life,• one administrator said. "I can't expect them to work

on one project for any amount of time without getting

bored."

COUNTERPOINT Wasn't "The Me Generation" generations ago? Honestly, every generation thinks they are better than the ones that

come after! "You can find complaints [about the younger

generation] in Greek literature, in the Bible," Professor

Cappelli of the Wharton School obseNed. "There's no

evidence Millennials are different. They're just younger." While Millennials are the 20-somethings of today, what is universally true is that young people share certain char-

acteristics ... because they are young. A recent study shows the similarity between how Mil-

lennials and Baby Boomers thought about themselves

at the same stage of life. As college freshmen, 71 per- cent of Millennials thought they were above average aca-

demically, and 63 percent of Baby Boomers thought the

same thing when they were college freshmen. Similarly,

77 percent of Millennials believed they were above aver-

age in the drive to achieve, versus 68 percent for Baby Boomers. In other words, "Every generation is Genera-

tion Me."

In some ways, Millennials may be less narcissistic

than Baby Boomers today. As one manager observed,

"[Millennials] don't have that line between work and

home that used to exist, so they're doing Facebook for the company at night, on Saturday or Sunday. We get

incredible productivity out of them.• Millennials also may

be more altruistic. For example, 29 percent of Millen-

nials believe individuals have a responsibility to remain

involved in issues and causes for the good of all, while only 24 percent of Baby Boomers feel the same level of

responsibility.

Rather than comparing different generations, it is

more accurate to compare people at one life stage with

others at the same life stage. Research supports that

people in their 20s tend to be more narcissistic than people in their 50s. Since Millennials are in their 20s, and

many of their parents are in their 50s, Millennials are no

more narcissistic than Baby Boomers were in their youth.

Chapter 3 Values, Attitudes, and Diversity in the Workplace 1 1 1

BREAKOUT GROUP EXERCISES Cl co 0, -Forn, small groups to discuss the following topics, as assigned by your instructor. Each person in the group should first ~

identify 3 to 5 key personal values. ;1-

1. Identify the extent to which values overlap in your group.

2. Try to uncover with your group members the source of some of your key values (for example, parents, peer group, teachers, church).

3. What kind of workplace would be most suitable for the values that you hold most closely?

EXPERIENTIAL EXERCISE

Feeling Excluded This 6-step exercise takes approximately 20 minutes.

Individual Work (Steps 1 and 2)

1. All participants are asked to recall a time when they have felt uncomfortable or targeted because of their demo- graphic status. Ideally, situations at work should be used, but if no work situations come to mind, any situation will work. Encourage students to use any demographic characteristic they think is most appropriate, so they can write about feeling excluded on the basis of race, ethnicity, gender, age, disability status, religion, or any other characteristic . They should briefly describe the situation, what precipitated the event, how they felt at the time, how they reacted, and how they believe the other party could have made the situation better.

2. The instructor asks the students to then think about a time when they might have either deliberately or accidentally done something that made someone else feel excluded or targeted because of their demographic status. Once

again, they should briefly describe the situation, what precipitated the event, how they felt at the time, how the other

person reacted, and how they could have made the situation better.

Small Groups (Steps 3 and 4)

3. Once everyone has written their descriptions, divide the class into small groups of not more than 4 people. If at all possible, try to compose groups that are somewhat demographically diverse, to avoid intergroup conflicts in the class review discussion. Students should be encouraged to discuss their situations and consider how their expe- riences were similar or different.

4. After reading through everyone's reactions, each group should develop a short list of principles for how they person-

ally can avoid excluding or targeting people in the future. Encourage them to be as specific as possible, and also

ask each group to find solutions that work for everyone. Solutions should focus on both avoiding these situations

in the first place and resolving them when they do occur.

Class Review (Steps 5 and 6)

5. Members of each group are invited to provide a very brief summary of the major principles of how they have felt excluded or targeted, and then describe their group's collective decisions regarding how these situations can be minimized in the future.

6. The instructor should lead a discussion on how companies might be able to develop comprehensive policies that will encourage people to be sensitive in their interactions w ith one another.

1 12 Part 1 Understanding the Workplace

ETHICAL DILEMMA

Tell-All Websites "Arrogant, condescending, mean-spirited, hateful . . . and

those traits describe the nicest people at Netflix," writes

one anonymous employee.130 "Management is awful . ..

good old boys club," writes a Coca-Cola market devel-

opment manager. And the reviews keep rolling in; Coca-

Cola has 1600 employee reviews and some companies,

like Google, have double that number on Glassdoor,

one of the websites that allows employees to rate their

employers.

Websites like Glassdoor are thriving; employees

increasingly join the forums and seem to relish the chance

to speak freely. Ryan Janssen, former CEO of Memo (an

app that allowed users to talk honestly about work), said

that apps such as Whisper give bosses access to candid

feedback they can't get otherwise. "The employee's nat - ural reaction lwhen managers ask for feedback directly) is

to tell you what you want to hear," he said. There is cer-

tainly truth to this - studies indicate that employees "put

on a happy face" for their bosses. When people know

their posts are not anonymous, "people put on this weird,

fake professional face," Janssen added.

Organizations are aware that employees watch what

they say when they can be identified, and many have used

anonymous job attitude surveys for this reason. Still, evalu-

ations from these surveys are often more glowing, and less

detailed, than anonymous website feedback. Some orga-

nizations have therefore altered the frequency and scope

of surveys to obtain more depth. Others have their own

intranet platforms to solicit concerns and complaints.

Beyond the personally unethical aspect of posting

scathing denouncements about people or organizations

online- sharing details with the world that you would

not share in person- issues of organizational ethics

come into play. While some companies try to discourage

employees from anonymously venting on websites and

apps, such mandates may violate the employees' right

to free speech. And how anonymous are anonymous

posts? Posts on Glassdoor and other forums eliminate

a person's name, but can't bosses sometimes deter-

mine which subordinate posted the comments? Manag-

ers everywhere need to decide how much management

sleuthing is ethical, and what consequences, if any, can

be forced on subordinates for anonymous posts.

Questions

1. Do you think employees have a right to say what they want to about their organizations online, as opposed to in private?

2. How would you react if you learned one of your employees posted unflattering comments about you as a manager? Would your reaction be any different if the employee posted unflattering comments about you as a person?

3. Do you feel it is acceptable to post comments anon- ymously, or do you think people should include their names? Why or why not?

CASE INCIDENTS

Job Crafting Consider for a moment a midlevel manager, Fatima, who

seems to be doing well.13 1 She consistently meets her

required benchmarks and goals, has built successful

relationships with colleagues, and has been identified by

senior management as having "high potential.• But she

isn't satisfied in her job. For example, she is interested

in understanding how social media may be used in mar-

keting efforts at all levels of the organization, but her job

does not allow her to work on this. She wants to quit and

find something that better suits her passions, but in her

economic situation, this may not be an option. So she has decided to proactively reconfigure her current job.

Fatima is part of a movement toward job "crafting,"

which is the process of deliberately reorganizing your job

so that it better fits your motives, strengths, and pas-

sions. How did Fatima craft her job? She first noticed

that she was spending too much of her time monitoring

her team's performance and answering questions, and

not enough time working on the creative projects that

inspired her. She then considered how to modify her rela-

tionship with her team so that her activities incorporated

her passion for social media strategies, while the team's

activities centred on developing new marketing. She also

identified members of her team who might be able to help

her implement her new strategies and directed her inter-

actions with these individuals toward her new goals. As a

result, not only did her engagement in her work increase,

but she also developed new ideas that were recognized

and advanced within the organization. In sum, she found

that by actively and creatively examining her work, she

was able to shape her job into one that is truly satisfying.

Chapter 3 Values, Attitudes, and Diversity in the Workplace 1 13

As you may have noted, Fatima exhibited a proactive

personality- she was eager to develop her own options

and find her own resources. Proactive individuals are often

self-empowered and are, therefore, more likely to seek

workable solutions when they are not satisfied . Research

leads us to believe Fatima will be successful in her cus-

tomized job and that she will experience increased well-

being . To the extent possible, then, all employees should

feel encouraged to be proactive in creating their best work

situations.

Questions

1. Should organizations work to create jobs that are satisfying to individual employees?

2. Are the principles of job crafting described here rel- evant to your job or studies? Why or why not?

3. Are there any potential drawbacks to the job crafting approach? If so, how can they be minimized?

Cl co 0, -

Walking the Walk Do you want to work for Google?132 In some ways, who wouldn't? Sunny California, fabulous campus, free organic

meals, perks galore ... oh, and challenging work with

some of the brightest minds in the field. By all accounts,

Google is a class act, a symbol of modernization.

Does Google want you to work for it? Ah, that is

the question. Eric Schmidt, a former Google CEO, and

Jonathan Rosenberg, a former Google senior product

manager, say Google searches for a certain type of

person: a •smart c reative." They say smart c reatives

are •a new kind of animal" - and the secret ingredient to

Google's success.

Do you think you are a smart c reative? Are you an

impatient, outspoken, risk taker who is easi ly bored?

Do you change jobs frequently? Are you intellectually

flexible? Do you have technical know-how, business

knowledge, and creativity? Do you th ink analytically?

According to Schmidt and Rosenberg, answering yes to

these questions makes you a smart creative. As you can

see, being a smart c reative is not all positive. But it will

get you hired at Google.

One last question: Are you male or female? Google

may be a symbol of the modernization of the workplace, but perhaps not of the workforce. The Google workforce,

with 48 600 individuals, is a man's world - 70 percent

male overall. On the technical side, a full 83 percent of

the engineering employees are male. In the management

ranks, 79 percent of the manag ers are male. On the

executive level, only three of the company's 36 execu-

tives are women.

Google officials say they are aware of the lack of diver-

sity, but that their diversity initiatives have failed. However,

others report that sexist comments go unchecked and

there is a frat-house atmosphere. In fact, an interviewer at

an all-company presentation insultingly teased a man and

woman who shared an office, asking them, "Which one of

you does the dishes?"

Thankfully, Google has begun to put its smart creatives to work on new thoughts about diversity. With the help of

social psychology research, the company sent all employ-

ees through training on unconscious bias- our reflexive

tendency to be biased toward our own groups- to force

people to consider their racist and sexist mindsets. So

far, the training seems to be making a bigger difference

than former init iatives, but the firm has a long way to go.

Laszlo Bock, Google's top HR executive, said, "Suddenly

you go from being completely oblivious to going, 'Oh my

god, it's everywhere."'

114 Part 1 Understanding the Workplace

Critics are skeptical that Google and other large tech-

nology firms will ever count women in their ranks in num-

bers that reflect the population, though research continues

to indicate that men and women are highly similar employ-

ees. Once Google has achieved greater diversity than it

currently has, perhaps its execut ives can begin to work

on the pay differentials: A recent Harvard study indicated

that women computer scientists receive 89 percent of the

pay men earn for the same jobs.

Questions

1. Does this article change your perception of Google as an employer? How?

2. Why do you think men at Google continue to hire mainly men?

3. Would you do anything to address diversity issues at Google if you worked there? What might you try?

Changing Attitudes Can you change unfavourable employee attitudes? Sometimes!

It depends on who you are, the

strength of the employee's attitude,

the magnitude of the change, and

the technique you choose to try to

change the attitude.

• • • • • • • • • • • • •

Practising Skills

People are most likely to respond to changes suggested by someone

who is liked, credible, and convincing. If people like you, they are more

apt to identify and adopt your message. Credibility implies trust , exper-

tise, and objectivity. So you are more likely to change someone's attitude

if that person views you as believable, knowledgeable about what you

are saying, and unbiased in your presentation. Rnally, successful atti-

tude change is enhanced when you present your arguments clearly and

persuasively.

It's easier to change a person's attitude if he or she is not strongly committed to it. Conversely, the stronger the belief in the attitude, the

harder it is to change it. Also, attitudes that have been expressed publicly

are more difficult to change because doing so requires admitting having

made a mistake. It's also easier to change attitudes when the change required is not

very significant. To get a person to accept a new attitude that varies greatly

from his or her current position requires more effort. It may also threaten

other deeply held attitudes .

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

All attitude-change techniques are not equally effective across situations.

Oral persuasion techniques are most effective when you use a positive,

tactful tone; present strong evidence to support your position; tailor your

argument to the listener; use logic; and support your evidence by appeal-

ing to the person's fears, frustrations, and other emotions. But people are

more likely to embrace change when they can experience it. The use of

training sessions where employees share and personalize experiences,

and practise new behaviours, can be a powerful stimulant for change.

Consistent with self-perception theory, changes in behaviour can lead to

changes in attitudes.

Form groups of 2. Person A is to choose any topic that he or she feels

strongly about and state his or her position on the topic in 30 words or

less. Person B's task will be to try to change Person P.:s attitude on this

topic. Person B will have 10 minutes to make his or her case. When the

time is up, the roles are reversed. Person B picks the topic and Person A

has 10 minutes to try to change Person B 's attitude.

Chapter 3 Values, Attitudes, and Diversity in the Workplace 1 15

Potential topics (you can choose either side of a topic) include the

following: politics; the economy; world events; social practices; or spe-

cific management issues, such as that organizations should require all

employees to undergo regular drug testing, there is no such thing as orga-

nizational loyalty anymore, the customer is always right, or layoffs are an

indication of management failures.

Questions

1. Were you successful at changing the other person's attitude? Why or why not?

2. Was the other person successful at changing your attitude? Why or why not?

3. What conclusions can you draw about changing the attitudes of your- self and others?

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

1. Try to convince a friend or relative to go with you to see a movie or play that you know he or she does not want to see.

2. Try to convince a friend or relative to try a different brand of toothpaste.

Reinforcing Skills

•••••••

Cl co 0, -

1 16

Mackenzie Sharpe hardly ever left his desk.1 He was too busy. So eating lunch at his desk was a regu- lar part of his working life. He was worried when his employer, Vancouver-based CBRE, instituted a new policy: Workspaces were not for eat- ing. "I was concerned that I'd be distracted if I had to get up and move to a lunch room just to have a nibble," says Mr. Sharpe, a senior sales associ- ate.

CBRE introduced the pol- icy because studies indicated that this type of workplace behaviour leads to stress.

Sharpe came to appreci- ate the policy within several months. "I feel more produc- tive, because I realize when you're eating at your desk, you're not necessarily working at full attention to what you're doing," he says.

While not a common policy in Canada, Lisa Fulford-Roy, CBRE's managing director of workplace strategy, thinks it was the right thing to do. "We want people to take a break from their screens, relax, and connect with colleagues in an informal setting. Ultimately, we expect it will help lower stress and increase productivity."

Ashley O'Neill, vice-pres- ident of corporate strategy at CBRE. considers this new policy a wellness issue. She doesn't think eating at one's desk really saves anyone any time. The policy is meant to promote physical and mental well-being. She also says it has benefited CBRE. "Since the move, we have recorded substantially more multidis- cipline business solutions being successfully executed for our clients- and that is a win on every front."

Are We Overstressed? Stress appears to be a major factor in the lives of many Canadians. A recent survey conducted by Statistics Canada found that Canadians exper ience a great deal of stress, with those from Quebec topp ing the list.2 The survey also foun d tha t women we re more stressed than men. The inset Stressed Quire a Lot, 2013 reports the findings.

The impact of stress on the Canadian economy is huge, costing an estimated $50 billion in lost productivity in 2016, w ith two-th irds of that coming from depression,3 and cons iderably more than that in medical costs.

Stntssed Quite a Lot8

An ad d it ional problem is that employees are working longer hou rs than ever, according to Professor Linda Duxbury of Carleton University's Sprott School of Business and Professor C hr is Higg ins of the Richard Ivey School of Business at the University of Weste rn Ontario. Their survey of more than 24 000 Canadians found that almost two-thi rds of Canadians wo rk more than 45 hou rs a week, a sign ificant increase from 20 years ago.4

Canadian businesses have cut the num- ber of employees over time, but not the amount of work. Duxbury notes that "Organizations are fooling themselves if they th ink they're getting increased productivity by expect ing th ose who they have left to do more.' 5

Canada Males (%)

Females(%) 21.3

Newtoundland and 24.6 Labrador 13.7 16.5 Prince Edward Island

12.8· Nova Scotia 22.7

N~ Brunswick 18.7

20.6

Ouebec 19.3

20.8 Ontario

23.8 27.1

Manitoba 21.6

25.5

Saskatchewan 19.3

20.9 Alberta

19.1 20.1

British Columbia 18.7

23.6 Yukon

21.1 23.1

Northwest Territories 16.9

23.8 12.6·

21.0 'Use with caution.

Note: Population aged 15 and Older Who extreme stress most days ol their lives. reported eJ<Peliencin9 Quite a lot or

Jobs and Stress Levels

How do jobs rate in terms of stress? The inset Tire Most and Least Stressful Jobs on page 118 shows how selected occupat ions ranked in an evalua- tion of 250 jobs. Among the criteria used in th e rank ings were overtime, quotas, deadl ines, competit iveness, phys ica l demands, envi ron mental cond itions, hazards encountered, in itiative required, stamina requ ired, w in-lose situations, and working in the publ ic eye.

\Vhat Is Stress? Stress is a dynamic condition in wh ich an individua l is confron ted with an opportunity, demand, or resource related to what the ind ividual desires and for wh ich the outcome is perceived to be both uncerta in and important. 7

Th is defin ition is complicated. Let's look at its components more closely.

Although s tress is typ ica lly d is- cussed in a nega tive context, it also has a positive va lue.8 In response to stress, your nervous system, hypothal- amus, pitu itary, and ad rena l glands supply you with stress ho rmones to cope. Your heartbea t and breathing accelerate to increase oxygen, while your muscles tense for action. 9 Th is is a t ime when stress offe rs po ten- tial gain. Consider, for example, the superior performance that an ath lete or stage performer gives in ' clutch" situations. Such ind ividuals often use stress positively to rise to the occas ion and perfo rm at o r nea r their maxi- mum. Similarly, many professionals see the pressures of heavy workloads and deadlines as pos itive challenges that enhance the quality of their work and the sa tisfaction they ge t from their job. However, when the situa- tion is negative, stress is harmful and may h inder your progress by elevating your blood pressure uncomfortably

117

and creating an erratic heart rhythm as you s truggle to speak and th ink logically. 10

Researchers have argued that clra/- /enge stressors-or stressors associated with workload, pressure to complete

tasks, and time urgency-operate quite differently from /Ji11dra11ce stressors-or stressors that keep you from reaching you r goals ( red tape, office politics, confus ion over job respons ibi lit ies) . Early evidence suggests that challenge stressors produce Jess strain than hin-

drance stressors. 11

Researchers have sought to clarify the conditions under wh ich each type of stress exists. It appears that employ- ees who have a stronger affective com- mitment to their organ iza tion can transfer psychological stres.~ into greater focus and h igher sales performance, whereas employees with low levels of commitment perform worse under stress. 12 When challenge stress increases, those with high levels of organizational support have higher role-based perfor- mance, but those w ith low levels of organizational suppo rt do not.13

More typ ically, stress is associated with demands and resources. Demands are respons ib ilities, pressures, obli-

gations, and even uncerta in ties that ind ividua ls face in the workplace. Resou rces are th ings with in an ind i- vidual's con tro l tha t can be used to resolve the demands. For example,

when you w ri te an exam, you feel stress because you confront opportu- nit ies and performance pressures. To the exten t that you can apply resources to the demands on you-such a~ being prepared for the exam-you will feel Jess stress.

Overall, social suppo rt may be

more important on an ongoing bas is than any other factor in coping w ith stress. Acco rd ing to recent research, people wi th emotional support may feel lower stress levels, Jess depressed from stress, and more likely to make

lifestyle ch anges that may reduce stress. 15 Overall, under the demands- resources perspective, having resources to cope with stress is just as impor-

tant in offsetting it as demands are in increas ing it. 16

ost and Least S\l'ffstlll Jobs The Ill ? According to 2017 research by

. t · terms of stress· fol""" . 14 How do JObS ra e in stresSful jobs are as ..., .. s. the top 10 rrost and 1eaSt

careeceast.cxim, Ten Least StressfUI Jobs Ten Most Stressful Jobs 1. Diagnostic medical sonographef

1. Enlisted military personnel 2 _ Compliance officer

2. Firefighter 3_ Hair stylist 3. Airline pilot 4. Audiologist 4. Police office< 5. University professor ..

5_ Event coordinator 6 _ Medical reeords techn1caan

6. Newspaper reporter . 7 Jeweller 7. senior corporate execut: 8·. operations resear<:' analyst

8. Public relations coord,na 9_ Pharmacy teehnic,an ..

9. Taxi driver Medical lal)O<a\ory teehn\Clarl 10. 1 o. Broadcaster

1 18

Causes of Stress

Workplace stres.~ can arise from a vari-

ety of factors:

• Enviro11111enta/ factors. Just as envi- ronmental uncertainty influences the d esign of an organiza tion's structure, it also influences s tress

levels among employees in that o rgan ization. Indeed, uncertainty is th e b iggest reason people have trouble cop ing with organizational changes .17 T hree common types of environmental uncertainty are economic, pol it ica l, and techno-

logical. Changes in the bus iness cycle create eco110111ic uncertainties. When the economy is contract- ing, for example, people become

increas ingly anxious about thei r job securi ty. Poli ti cal uncertain ties don't tend to create as much stress

among North Americans as they do for employees in countries such as Haiti o r Venezuela . The obvious

reason is that the United States and Canada have stab le political sys-

tems, in wh ich change is typically implemented in an o rderly man- ner. Because innovations can make an employee's skills and experience obsolete in a very short time, keep-

ing up w ith new computer pro- grams, robotics, automation, and

similar forms of tec/1110/ogica/ change are also a threat to many people at work that causes them stress.

• Organizational factors. T here is no shortage of facto rs wi th in an organization that can cause stress. Pressures to avo id errors o r complete tasks in a limited time,

work overload, a demanding and insensitive boss, and un pleasant co-workers a re a few examples.

We have categorized these factors around task, role, and interpersonal

demands.

• Tas/1 demands relate to a person's job. They include the design of the individual 's job (includ- ing its degree of autonomy, task variety, and au tomation), work ing condit ions, and the physical work layout. The single factor most consistently related to stres.~ in the workplace is the amount of work that needs to be done, followed closely by the presence of looming deadlines. is \",fork ing in an overcrowded room or in a vis ible location where noise and interruptions are constant can also increase anxiety and stress.19 As customer

. . servJCe grows ever more impor- tant, emotional Jabour becomes a source of s tress .20 Do you th ink you could put on a happy face while working at Starbucks or WestJet when you are having a bad day?

• Role demands relate to pres.~ures placed on a person as a function of the particular role he or she plays in the organization.

• Interpersonal demands are pres- sures created by other employ- ees. Some pressures are expected, but a rap idly growing body of research has shown that nega- tive co-worker and supervisor behaviours, includ ing fights, bullying, incivility, racial haras.~- men t, and sexual harassment, are especially strongly related to stress at work. 21 In terpersonal m istreatment can have effects at a physiologica l level, with one study find ing tha t unfa ir treatment in a con trolled se t- t ing triggered the release of cortisol, a hormone invo lved in the stress-reaction process. 22

Furthermore, individuals who bel ieve they are experiencing a social climate of discrimination

from multiple sources over t ime have h igher levels of psychologi- cal strain, even after accoun ting for d iffering baseline levels of well-being. 23 Social exclusion, perhaps as a form of interper- sonal mistreatment, can also be a sign ificant source of psycho- logical strain. One study found that experiences of ostracism may have even more negative effects than experiences of inter- personal confl ict. 24

• Personal factors. The typical individ- ual may work between 40 and SO hours a week. But the experiences and problems that people encoun- ter in the other 120-plus nonwork hours can spill over to the job. The final category of sources of stres.~ at work includes factors of an employ- ee's personal life: family is.~ues and personal economic problems.

• Most people hold family and per- sonal relationsh ips dear. Family issues, even good ones, can cause stress that significantly impacts individua ls. Family issues are often closely rela ted to work- life conflict.

• Regardless of income level, some people are poor money manag- ers or have wants that exceed the ir earn ing capacity. People who make $100 000 per year seem to have as much trouble handl ing their finances as those who earn $20 000-although recen t research indicates that those who make under $50 000 per year do experience more stress. 25 The personal economic problems of overextended finan- cial resources create stress and take attention away from work.

When we review stressors individu- ally, it's easy to overlook that stres.~ is an add itive phenomenon-it builds

•• • • • • • • • • • • • • •

• ••••••••••••••••

FACTBOX How employees explained why

they were stressed at work in a

• recent survey: • • • • 59 percent said they feel • • • • • • • • • • • • • • • • • • • • • • •

stressed and on edge .

• 67 percent said that their job expectations are too demanding .

• 60 percent reported problems of trust between employees and management at their workplace.

• 56 percent said their workplace culture isn't positive. 26

.. ..... .. ... .. .. .... .... .... + •••

up. 27 Each new and persistent stressor adds to an individual's stress level. A s ingle stressor may seem relatively un important in and of itself, but if it is added to an already high level of stress, it can be too much. To appraise the total amount of stress an individual is under, we have to sum up all of the sources and severity levels of that per- son's stress. Since this cannot be eas- ily quan tified or observed, managers should remain aware of the potential stress loads from organizational fac- tors in particular. Many employees are willing to express their perceived stress load at work to a caring manager.

Consequences of Stress

Stres.~ shows itself in a number of ways, such as high blood pressure, irritability, difficulty in making routine decis ions, changes in appetite, acciden t prone- nes.~, and the like. These symptoms fi t in to three general categories: physio- logical, psychological, and behavioural symptoms.28

119

• Physiological symptoms. Most early research concerned wi th stress was directed at physiological symptoms because most researchers in th is area were specialis ts in the hea lth and medical sciences. Their work led to the conclusion that stress could cre- ate changes in metabol ism, increase heart and breathing rates, increase blood pressure, cause headaches, and induce heart attacks. Evidence now clearly indicates that stress may have harmful physiological effects. A long-term study conducted in the United Kingdom found that job stra in was associated wi th h igher levels of co ronary heart disease. 29

Still another study conducted with Danish human services workers found that higher levels of psycho- logical burnout at the work-uni t level were related to sign ificantly higher levels of sickness absence.Jo tvlany other studies have shown sim- ilar resul ts linking work stress to a variety of indicators of poor health.

• Psyc/10/ogical symptoms. Job dis- satisfaction is an obvious cause of stress. But stress also shows itself in other psychological states-for instance, tension, anxiety, irritabil- ity, boredom, and procrastination. One study that tracked physiologi- cal responses of employees over time found that stress due to high work- loads was related to lower emotional well-be ing.JI Jobs that make mul- tiple and confl icting demands or in which there is a lack of clarity as to the person's duties, authority, and respons ibilities increase stress and dissatisfaction.J2 Simi larly, the less contro l people have over the pace of their work, the greater their stress and dis.~atisfaction. Jobs that provide a low level of variety, sign ificance, autonomy, feedback, and iden tity create stress and reduce satisfaction and involvement in the job_JJ Not everyone reacts to autonomy in the

120

same way, however. For those with an external locus of control, increased job control increa~es the tendency to experience stres.~ and exhaustion.34

• Belravioural symptoms. Resea rch on behaviour and stress has been conducted across several countries and over t ime, and the relation- sh ips appea r relatively cons istent. Behaviourally related stress symp- toms include reductions in pro- ductivity, increases in absence and turnover, changes in eating habits, increased smoking o r consump- tion of alcohol, rapid speech, fidg- eting, and sleep d iso rders.JS More recen tly, s tress has been linked to aggression and violence in the workplace.

Why Do Individuals Differ in Their Experiences of Stress? Some people thrive on stressful situ- ations, wh ile others are overwhelmed by them. What differentiates people in terms of their ability to handle stress7 What individual difference va riables modera te the rela tionship between potential stressors and experienced stres.~1 At least four variables-perception, job experience, social support, and person- ality-are relevant.

• Perception. Indiv iduals react in response to their perception of real- ity ra ther than to rea lity itself. Percep tion, therefore, modera tes the relationship between a potential stress condition and an employee's reaction to it. Layoffs may cause one person to fear losing his job, wh ile another sees an opportunity to get a large severance allowance and start her own business. So stres.~ potential does not lie in objective conditions;

instead it lies in an employee's inter- pretation of those conditions.

• Job experience. Experience on the job tends to be negatively related to wo rk stress. Two explanations have been offered.JG First is selec- tive withdrawa l. Voluntary turn- over is more p robable among people who experience more stress. Therefore, people who remain with the organization longer are those wi th more stress-res istant trai ts or those who are more res istant to the stress characteristics of the organi- zation. Second, people eventually develop coping mechanisms to deal with stres.~. Because this takes time, senior members of the organization are more likely to be fully adapted and should experience Jes.~ stress.

• Social support. Collegial relation- sh ips with co-workers or supervisors can buffer the impact of stress.J7

Th is is among the best-documented relationsh ips in the stress literature. Social support helps ease the nega- tive effects of even h igh-strain jobs.

• Personality. Stress symp toms expressed on the job may origi- nate in the person's personality.JS Perhaps the most widely studied per- sona/it)' trait in research on stress is neuroticism, wh ich we discussed in Chapter 2. As you might expect, neu- rotic individuals are more prone to experiencing psychological strain.J9 Evidence suggests that neurotic indi- viduals are more likely to find stress- ors in their work environments, so they believe their environments are more th reatening. They also tend to select less adaptive coping mecha- nisms, relying on avoidance as a way of dealing with problems rather than attempting to resolve them.40

Workaho lism is a personal ity characteristic related to s tress levels. Workaholics are people obsessed with thei r work; they put in an enormous

number of hou rs, th ink abou t work even when not work ing, and create add it ional work respons ib ilit ies to sa tisfy an inner compulsion to work more. In some ways, they might seem like ideal employees. That is probably why when mos t people are asked in interviews wha t their grea test weak- ness is, they reflexively say. "I just work too hard.' However, working hard is different from working compulsively. \.Yorkahol ics are not necessarily more product ive than other employees, despite their extreme efforts. The strain of putting in such a high level of work effort eventually begins to wear on the person, leading to h igher levels of work-life confl ict and psychological bumout.41

How Do We Manage Stress? Next we d iscuss ways that individuals can manage stress, and the programs organizations use to help employees manage stress.

Individual Approaches

An employee can and should take per- sonal responsib ility for reducing his or her stress level. Ind ividual strate- gies that have proven effective include time-management techniques, physical exercise, relaxation techniques, and a close social support network

• Time-management techniques. t\>lany people manage thei r t ime poorly. The well-organ ized employee, like the we ll-organized s tuden t, can often accomplish twice as much as the person who is poorly organized. A few of the more well-known time-managemen t techniques are (1) main tain ing to-do lis ts, (2) scheduling activi ties based on priorities, not what you can accom- plish, (3) doing the hard tasks first,

and (4) b locking out d istraction- free time to accomplish tasks. These t ime-management skills can help minimize procrasti nation by focus- ing efforts o n immediate goals and boosting motivation even in the face of tasks that are less enjoyable.42

• Physical activit)'. Physicians have rec- ommended noncompetitive physical exercise, such as aerobics, walking, jogging, swimming, and rid ing a bicycle, as a way to deal with exces- sive stress levels. These activities decrea~e the detrimental physiologi- cal responses to stress and allow us to recover from stress more quickly. 43

• Relaxation techniques. Individuals can teach themselves to reduce ten- sion through relaxation techniques such as med itation, hypnosis, and deep breathing. The object ive is to reach a state of deep relaxation, in which you focus all you r energy on the re lease of muscle ten- sio n.44 Deep relaxa tion fo r 15 o r 20 m inutes a day releases tens ion and provides a pronounced sense of peacefulness, as well as sign ifi- cant changes in heart rate, blood pressure, a nd o ther phys iological factors. A growing body of research shows tha t s imply taking b reaks from work at routine intervals can facilitate psychological recovery and reduce stress significantly and may improve job performance, and these

effects are even greater if relaxation techniques are employed.45

• Social support. Having friends, fam- ily, or colleagues to talk to provides an outlet when stress levels become excess ive. Expanding you r socia l support network provides you with someone to listen to your problems a nd to offer a more objective per- spective on the si tuation.

The inset Tips for Reducing Stress offers additional ideas for managing stress.

Organizational Approaches

t\>lont real-based CGI, a global IT company, delivers a comprehensive corpora te wellness p rogram to its 68 000 employees worldwide th rough iL~ Health Portal. Calgary-ba~ed Devon Energy built The Well, a 1400-square- metre welln ess and fi tness facility. Employees can use the state-of-the-art faci lity to ' improve overall wellness, increase energy levels, reduce absentee- ism, and effectively recruit and retain staff. The t\>lani toba Teachers' Society created a wellness program based o n teacher input. The program helps teachers manage stress, and allows them to find time to take care of them- selves. Balance initiatives include chair massages, smoothie delivery, a regular magazine, and learn ing opportunities on health and wellness topics.'46

Tlpe for Reducing Sbess

• SPend lime with supportive friends or family • Talk Yourself through it. ·

• Make sure to get enough sleep.

• Engage in exercise hobbi . . . tech . ' es. Pos1t1ve thinking, and reJaxar

niques such as meditation or yoga. 47 ion

121

tvlost fi rms that have introduced wel lness p rograms have found sig- ni ficant benefits. A recent joint study conducted by Sun Life Fi nancial and the Richard Ivey School of Business found that in companies wi th well- ness programs, employees m issed 1.5 to 1.7 fewer days due to absenteeism. This resu lted in estimated savings of $251 per employee per year.48 While many Canadian busines.~es report hav- ing wellness initiatives, only 24 percent have "fully implemented wellness strat- egies' (which includes multi-year goals and an evaluation of result~). accord- ing to a recent survey.4 9

So what can organiza tions do to reduce employee stress? In genera l, s trategies to reduce stress include improved employee selection, place- ment of employees in app ro priate jobs, realistic goal setting, design ing jobs with employee needs and skills in m ind, increased employee involve- ment, improved organ izat ional communication, offering employee sabbaticals, and, as mentioned, estab- lishment of corporate well ness pro- grams.

Certa in jobs are more stres.~ful than others, but ind ividua ls also d iffer in their response to stressful s ituations. Vie know, for example, that ind ividu- als w ith little experience or an exter- na l locus of control tend to be more prone to stress. Selection and place- ment decisions should take these facts into consideration. Although manage- ment should not restrict hiring to only experienced individuals with an inter- nal locus of con trol, such ind ividuals may adapt better to high-stress jobs and perfo rm those jobs more effec- tively. Sim ilarly, training can increase an individual's self-efficacy and thus lessen job strain.

Individuals perfo rm better when they have specific and challenging

122

goals and rece ive feedback on how well they are progressing toward them. Goals can reduce stres.~ as well as pro- vide mo tiva tion.so Employees who are h ighly committed to their goals and see purpose in the ir jobs experi- ence Jess stress because they are more li ke ly to perce ive stressors as chal- lenges rather than hindrances. Specific goals that are perceived as atta inable clar ify performance expectations. Add it ionally, goa l feedback reduces uncerta inties as to actual job perfo r- mance. The result is less employee frus- tration, role ambiguity, and stress.

Redesign ing jobs to give employ- ees more responsib ility, more mean- ingful work, more au tonomy, and increased feedback can reduce s tress because these factors give the employee greater contro l over work activit ies and Jessen dependence on others. Of course, not all employees wan t jobs with increased responsib ility. The right design for employees with a low need for growth migh t be less responsibility and increased specialization. If individ- uals prefer structure and routine, more structured jobs should a lso reduce uncertainties and stres.~ levels.

Role stress is detrimental to a large extent because employees feel uncertain about goals, expectations, how they will be evaluated, and the like. By giving employees a vo ice in the decisions that d irectly affect thei r job performance, management can increase employee contro l and reduce ro le stress. So managers should consider increasing employee involvement in decision mak- ing because evidence clearly shows that increases in employee empowerment reduce psychological strain_s1

Increasing formal organiza tional communication wi th em ployees reduces uncertainty by lessening role ambigu ity and role confl ict. Given the importance that percep tions play

,n moderat ing the stress-response relationship, management can a lso use effective commun icat ion as a means to shape employee percep- tions. Remember that wha t employ- ees categorize as demands, th reats, or o pportun it ies at wo rk are merely in terpretations, and those in terpreta- tions can be affected by the symbols and act ions communicated by man- agement.

Some employees need an occa- sional escape from the frenetic pace of their work. In recent years, compa- nies such as American Express, Intel, General Mills, Microsoft, Morn ingstar, DreamWorks Anima tion, and Adobe Systems have begun to provide extended voluntary leaves. 52 These sabbaticals-ranging in length from a few weeks to several months-allow employees to travel, re lax, or pur- sue personal pro jects tha t consume time beyond normal vacation weeks. Proponents say that these sabbaticals can revive and rejuvenate employees who might be headed for burnout.

Our final suggestion is to offer organiza tionally supported wellness programs. These typ ically p rovide workshops to help people qu it smok- ing. control alcohol use, Jose weigh t, eat better, and d eve lo p a regular exercise program; they focus on the employee's total phys ica l and men- tal condition.53 A meta-analysis of 36 programs des igned to reduce stress (including wellness programs) showed that in terventions to help employees reframe s tressful situa tions and use active coping strategies appreciably reduced stress Jevels.5 4 tvlost wellness programs a~sume that employees need to take personal responsibil ity for their physical and men tal health and tha t the organization is merely a means to that end. The inset Toward Less Stressful \¥oril offers additional ideas.

F A C E O F F When organizations provide on-

site daycare facilities, they are fill - ing a needed role in parents' lives,

and making it easier for parents to

attend to their job demands rather than worry about child-care arrange-

ments.

RESEARCH EXERCISES

1. Look for data on stress levels in other countries. How do these data compare with the Canadian data presented in the Fact.box? Are the sources of stress the same in different countries? What might you conclude about how stress affects people in different cultures?

2. Rnd out what three Canadian organizations in three differ- ent industries have done to help employees manage stress. Are there common themes in these programs? Did you find any unusual programs? To what

When employees expect organizations

to provide child care, they are shifting their responsib~ities to their employers,

rather than keeping their family needs

and concerns private. Moreover, it is unfair to offer child-care benefrts when

not all employees have children.

extent are these programs tai- lored to the needs of the employ- ees in those industries?

YOUR PERSPECTIVE

1. Think of all the technical avenues enabling employees to be con- nected 24/7 to the workplace: email, texting, company intranets. A generation ago, most employ- ees could go home after a day at work and not be "on call." What are the positive benefits of this change? What are the down- sides? As an employee facing the demand to "stay connected" to

Toward Less Sbesstu1 Wort(

• Avoid high-stress iobs- such as st complaint work01: POiice offi ockbroker. customer service/

. • icer, waiter mecfca/ · and air traffic controller I • ' intern, secretary h - un ess you are co f'd . · andle stress. n I ent in your ability to

• If you do exPerience stress at work t of control (so You can decide how . ry to find a job that has Plenty supportive co-workers. to perform your work) and

• Lack of money is the top stressor reporte 30, so pursue a career that d by People under age degree of stress. ss pays you well but does not have a high

your workplace, how would you try to maintain a balance in your life?

2. How much responsibility should individuals take for managing their own stress? To what extent should organizations become involved in the personal lives of their employ- ees when trying to help them manage stress? What are the pros and cons for whether employees or organizations take responsibility for managing stress?

WANT TO KNOW MORE?

If you want more tips on detecting

stress and coping with it, the Canadian

Heart & Stroke Fou ndat ion has created a helpfu l brochure: http:/ / www.heartandstroke.ca/-/media/ pdf-file.s/canada/health-information-

cata logu el e n-stress- test-v3-0. ashx. The site also offers tips on

reducing stress. You can also take a

work-lffe balance quiz at the Canadian Mental Health Association website

(www.cmha.ca/mental_health/work-

life-balance-quiz/) and read more on the effects of mental illness and stress.

183

124

Theories of Motivation

PA RT 2

STR I VING FOR

PERFORMANCE

O Describe the three key elements of motivation.

Lee

Valley Tools founder Leonard

Lee decided to become

an entrepreneur at age 40.

He wanted his employees to

act as entrepreneurs too. How

did he use motivation to build a very

successful

tool store?

f) Evaluate the applicability of early theories of motivation. f) Apply the key tenets of expectancy theory to motivating employees. C, Demonstrate the differences among goal-setting theory, self-efficacy theory, and reinforcement theory. 0 Describe why equity and fairness matter in the workplace. O Demonstrate how organizational justice is a refinement of equity theory. f) Apply the predictions of self-determination theory to intrinsic and extrinsic rewards. G Discuss the ethics behind motivation theories. 0 Summarize the essence of what we know about motivating employees.

pproaching age 40, Leonard Lee was tir- ing of working for the federal government. 1 Though his grand- mother felt he had

won the lottery by get-

Jonathan Hayv,ardtrhe Canadian Press

ting a government job, Lee was not so sure. He was tired of the bureaucratic decision making, for one thing, and was troubled by the fact that some of his colleagues did not really seem motivated by their jobs. "But what was

drMng me crazy were the number of people who would say, 'I have 17 years, eight months, two weeks, two days, and seven hours before I retire."

Lee looked for something else to do, and he and his wife started a small mail-order business, selling cast-iron barrel stove kits. After doing this successfully for two years, Lee's confidence

built up, and he quit his government job to launch Lee Valley Tools. At first it was a cata- logue business. Then a long postal strike almost ruined the business. So Lee opened a

retail store, and then continued to open stores over the years. An investment partner explained why he had helped Lee start his business: "He was always full of energy, full of beans, full of ideas . . . he was constantly churning up new ideas and continued to do that right up until the end." In other words, Leonard Lee was very motivated in whatever he did: He found too much

responsibility in government work, without enough authority. Due largely to his personal moti- vation, there are now 19 Lee Valley stores from Halifax to Victoria, all family-owned. What motivates people? In this chapter, we review the basics of motivation, assess motivation

theories, and provide an integrative understanding of how the different theories apply to motivating employees in organizations.

• Are managers manipulating employees when they link rewards to productivity?

\ I I ' , : ;, : ,V, , '

'l'IIE BIG IDEA • Why do some managers do a better job of motivating people than others?

• How important is fairness to you? • What can you do if you think your salary is unfair?

Successfully 1notivaling individuals requires

identifying their needs and 1naking it possible

for thern lo achieve those needs.

125

126 Part 2 Striving for Performance

O Describe the three key elements of motivation.

motivation The intensity, directioo, and persistence of effort a person shows in reaching a goal.

Theory X The assumption that employees dislike work. will attempt to avoid it, and must be coerced, con- trolled, or threatened with punishment to achieve goals.

Theory Y The assumption that employees like work, are creative, seek responsibility, and will exercise sett-direction and sett-control if they are committed to the objecti11es.

intrinsic motivators A person's internal desire to do something we to such things as interest, challenge, and personal satisfaction.

extrinsic motivators Motivatioo that comes from outside the person and includes such things as pay, bonuses, and other tangible rewards.

What Is Motivation? Motivation is one of the most frequently researched topics in organizational behav- iour (OB).2 A 2013 Gallup poll suggests that employees are no t motivated. Seventy percent of Canadian employees are no t engaged in their work, and another 14 percent are actively disengaged.3 In a 2014 survey, 89 percent of employees reported wasting time at work every day, and 62 percent said they waste between 30 and 60 minutes each day. How? Surfing the Internet came in first with 26 percent of respondents (Google, Facebook, and Linkedln were the most popular time distractors); "too many meetings/conference calls and dealing with annoying co-workers tied for second place with 2401o each. "4

Motivation is the process that accounts for an individual's intensity, direction, and persistence of effort toward reaching a goal.5

The three key elements in our definition are intensity, direction, and persistence. lnrensity describes how hard a person tries. This is the element most of us focus on when we talk about motivation. However, high intensity is unlikely to lead to favourable job- performance outcomes unless the effort is channelled in a direction that is beneficia l. Therefore, we consider the quality of effort as well as its intensity. Finally, the effort requires persistence. This measures how long a person can maintain effort. Motivated individuals stay with a task long enough to achieve their goal.

Many people incorrectly view motivation as a personal trait- something some peo- ple have and others don't. Along these lines, Douglas McGregor proposed two distinct views of human beings. Theory X, which is basically negative, suggests that employees dislike work, will auempt to avoid it, and must be coerced, controlled, or threatened with punishment to achieve goals. Theory Y, which is basically positive, suggests that employees like work, are creative, seek responsibility, and will exercise self-direction and self-control if they are committed to the objectives.6

Our knowledge of motivation tells us that neither theory alone fully accounts for employee behaviour. What we know is that motivation is the result of the interaction of the individual and the situation. Certainly, individuals differ in their basic motivational drive. But the same employee who is quickly bored when pulling the lever on a drill press may enthusiastically pull a slot machine lever in Casino Windsor for hours on end. You may read the latest bestseller at one sitting, yet find it difficu lt to concentrate on a textbook for more than 20 minutes. It's no t necessarily you- it's the situation. So as we analyze the concept of motivation, keep in mind that the level of motivation varies both among individuals and within individuals at different times.

You should also rea lize that what motivates people will also vary among individu- als and situations. Motivation theoris ts talk abou t intrinsic motivators and extrinsic motivators. Extrinsic motivators come from outside the person and include such things as pay, bonuses, and other tangible rewards. Intrinsic motivators come from a person's internal desire to do something due to such things as interest, challenge, and personal satisfaction. Individuals are intrinsically motivated when they genuinely care about their work, look for better ways to do it, and are energized and fulfilled by doing it well.7

The re\vards the individual gets from intrinsic motivation come from the work itself rather than from external factors such as increases in pay or compliments from the boss.

Are individuals primarily intrinsically or extrinsically motivated? Theory X suggests that people are almost exclusively driven by extrinsic motivators. However, Theory Y suggest.~ that people are more intrinsically motivated.

Intrinsic and extrinsic motiva tion may reflect the situation, however, rather than individual personalities. For example, suppose that your mother has asked you or your brother to take her to a meeting an hour away. You may be willing to drive her, without any thought of compensation, because it will make you feel good to do something for her. That is intrinsic motivation. But if you have a love-hate relationship with your brother, you may insis t that he buy you lunch for helping out. Lunch would then be an

Chapter 4 Theories of Motivation 127

exlrinsic motivator- something that came from ouLSide yourself and motivated you lo do the task. Later in the chapler, we review Lhe evidence regarding the significance of exlrinsic vs. inlrinsic rewards, and also examine how lo increase intrinsic motivation. Meanwhile, you might consider whether you can motivale yourself th rough self-Lalk, an idea considered in Focus 011 Research.

FOCUS ~isEARCH Talking to Yourself Can Be a Powerfu l Self-Motivator

How does internal d ialogue affect our motivat ion? In the children's book The Uttle Engine That Could, the title character says, " I think I can, I think I can," motivating itself

to do the job through positive self-talk. In a 201 O study, researchers examined whether this type of talk is the best way to motivate oneself, or whether it is better to ask, "Can

I do this?"8

Subjects were asked to spend one minute either "wondering whether they would com- plete a task or telling themselves they would." Then they were asked to complete some

puzzles. Subjects who asked themselves whether they would complete the task were

more successful than those who said they would. Several similar studies were conducted, and the results of each of them indicate that intrinsic motivation increased when subjects

asked themselves a question about performance.

These findings suggest that asking yourself whether you will go to the gym three times next week will be more effective than telling yourself that you will go to the gym three

times next week. One of the authors of the study summarized the results as follows: "The

popular idea is that self-affirmations enhance people's ability to meet their goals. It seems, however, that when it comes to performing a specific behaviour, asking questions is a more

promising way of achieving your objectives." ......................................•

Needs Theories of Motivation People vary in what lhey need to motivate themselves. Some need external support and guid- ance, while others are motivated intrinsically, relying on themselves.9 One of the things that

motivated Leonard Lee, founder of Lee Valley Tools, was sourcing and designing tools for his customers-in olher words, meeting the needs of other people. When Lee heard that an Ottawa-

based plastic surgeon was using Lee Valley woodworking knives, he started a new company to

sell medical instruments. The company made a number of specialized tools for the medical profession. Though he

eventually sold lhe rights to these tools, his son Robin Lee said that his father "was most proud

of and most disappointed by" the medical company because "selling to the canadian medical system proved frustrating." That said, Leonard Lee ran the business for almost 16 years.

In this section we discuss how needs can be used to motivate others.

Theories of motivalion generally fa ll into two categories: needs theories and process theories. Needs theories describe Lhe lypes of needs thal musl be mel lo motivate indi- viduals. Process theories help us understand the actual ways in which we and others can be molivated. There are a variety of needs theories, including Maslow's hierarchy of needs, Herzberg's motivation- hygiene theory (sometimes called the two-factor theory), and McClelland's theory of needs. We briefly review lhese lo illustrale the basic proper- lies of needs theories.

Needs Lheories are widely crilicized for nol standing up to scienlific review. How- ever, you should know them because ( 1) Lhey represent a foundation from which

128 Part 2 Striving for Performance

f) Evaluate the applicabil- ity of early theories of motivation.

hierarchy of needs theory A hierarchy of five needs-physiologi- cal, safety, social, esteem, and seH- actualization-,n which, as each need is substantially satisfied, the next need beoomes dominant.

lower-order needs Needs that are satisfied externally. such as physi- ological and safety needs.

self-actualization The drive to become what a person is capable of becoming.

higher-order needs Needs that are satisfied internally. such as social (belonging), self-esteem, and self- actualization needs.

two-factor theory A theory that relates intrinsic faciOfs to job satisfac- tion and associates extrinsic factOfs with dissatisfaction. Also called the motivati01H1ygiene theory.

contemporary theories have grown, and {2) practising managers still regularly use these theories and their terminology in explaining employee motivation.

Maslow's Hierarchy of Needs Theory The best known theory of motivation is Abraham Maslow's hierarchy of needs. lO Maslow hypothesized that within every human being there exists a hierarchy of five needs:

• Physiological. Includes hunger, thirst, sheller, sex, and other bodily needs.

• Safety. Includes security and protection from physical and emotional harm.

• Social. Includes affection, belongingness, acceptance, and friendship.

• Esteem. Includes internal esteem factors such as self-respect, autonomy, and achievement; and external esteem factors such as status, recognition, and attention.

• Selfacuialization. Includes growth, achieving one's potential, and self-fulfillment. This is the drive to become what one is capable of becoming.

Recently, a sixth need has been proposed as the highest level- intrinsic values- which is said to have originated from Maslow, but it has yet to gain widespread acceptance.11

Although no need is ever fully met, a substantially satisfied need no longer moti- vates. Thus, as each need becomes substantially satisfied, the next need becomes domi- nant. This is what Maslow means by moving up the steps of the hierarchy. So if you want to motivate someone, according to Maslow, you need to understand what level of the hierarchy that person is currently on and focus on satisfying needs at or above that level. Exhibit 4-1 identifies Maslow's hierarchy of needs on the left, and then illustrates

how these needs are applied in the workplace. 12 Maslow separated the five needs into higher and lower orders. Physiological and

safety needs, where people start, are lower-order needs; social (belonging), self-esteem, and self-actualization are higher-order needs. Higher-order needs are satisfied inter- nally (within the person), whereas lower-order needs are mainly satisfied externally (by rewards such as pay; union contracts, and tenure).

Maslow's theory has received long-standing wide recognition, particularly among practising managers. It's intuitively logical and easy to understand, even though little research supports the theory. Maslow himself provided no empirical evidence, and some research has val idated it. 13 Unfortunately, however, mos t research does not, especially when the theory is applied to diverse cultures, 14 with the possible exception of physiological needs. 15 But old theories, especially intui tively logical ones, die hard. It is thus important to be aware of the prevailing public acceptance of the hierarchy \vhen discussing motivation.

Two-Factor Theory Believing that an individual's relationship to work is basic and that attitude toward this work can very well determine success or failure, Frederick Herzberg wondered, "What do people want from their jobs1• He asked people to describe, in detail, situations in which they felt exceptionally good or bad about their jobs. The replies people gave when they felt good about their jobs significantly differed from when they felt bad, which led Herzberg to his two-factor theory-also called motivation-hygiene theory, but this term is not used much today. I 6

As Exhibit 4-2 shows, intrinsic factors, such as achievement, recognition, the work iL~elf, responsibility, advancement, and growth, seem to be related to job satisfaction. Respondents who felt good about their work tended to attribute these factors to their

Chapter 4 Theories of Motivation 129

EXHIBIT 4-1 Maslow's Hierarchy of Needs Applied to the Workplace

Self-Esteem

Belonging

Safety

Physiological

Recognition

Culture

Job Security

Salary and Rewards

situations. On the other hand, dissatisfied respondents tended to cite extrinsic factors, such as company policy and administration, supervision, interpersonal relations, and work condi tions.

The data suggest that the opposite of satisfaction is no t dissatisfaction, as was tra- ditionally believed. Removing dissatisfying characteristics from a job does not neces- sarily make the job satisfying. As illustrated in Exhibit 4-3, Herzberg proposed a dual

EXHIBIT 4-2 Comparison of Satisfiers and Dissatisfiers

Factors characterizing 1844 events on the job that

led to extreme dissatisfaction

Company policy ond administration Supervision

Relationship with supervisor

Worlc conditions

50% 40

Solory

Relationship with peers

Personal life

Relationship with subordinates

Slalus

30 20 10 0

Factors characteriz:ing 1753 events on the job that

led to extreme satisfaction Achievement

Recognition

Work itself

Responsibility

Advancemenl

Growth

All factors contributing

to job dissatisfaction

69 Hygiene

All factors contributing

to job sotisfoclion

I I I I I I I 80% 60 40 20 0 20 40 60 80%

Ratio and percentage

20 30 40 50% Percentoge frequency

Source: Harvard Business Review. An exhibit from Frederick Herzberg, "One More Time: How Do You Motivate Employees?" Harvard Business Review 81 , no. 1 (January 2003), p. 90.

130 Part 2 Striving for Performance

hygiene factors Fact0<s-such as company policy and administration, supervision, and salary-that. when adequate in a job, placate employees. When these factors are adequate, people will no! be dissatisfied.

McClelland's theory of needs Achievemen~ power, and affiliation are three important needs that help explain motivation.

need for achievement (nAch) The drive to excel, to achieve in relation to a set of standards, and to strive lo succeed.

need for power (nPow) The need to make o1hers behave in a way that they would not have behaved o1hervnse.

EXHIBIT 4-3 Contrasting Views of Satisfaction and Dissatisfaction

Tradit ional view

Dissat isfaction Satisfaction

Herzberg's view ------Hygiene Factors ---Dissatisfaction No Dissatisfaction Motivators

No Satisfaction Satisfaction

continuum: The opposite of "Satisfaction• is •No Satisfaction," and the opposite of "Dissatisfaction" is "No Dissatisfaction."

Under two-factor theory, the factors that lead to job satisfaction (motivators) are separate and d istinct from those that lead to job d issatisfaction (hygiene factors). Therefore, managers who seek to eliminate factors that create job dissatisfaction may bring about peace but not necessarily motivation. They will be placating rather than motivating their employees. Conditions such as quality of supervision, pay, company pol icies, physical work conditions, relationships \v ith others, and job security are hygiene factors. When they are adequate, people will not be dissatisfied; but nei ther will they be satisfied. lfwe want to motivate people in their jobs, we should emphasize factors associated with the work itself or with outcomes directly derived from it, such as promotional opportunities, personal growth opportuni ties, recogni tion, responsibil- ity, and achievement. These are the characteristics people find intrinsically rewarding.

The two-factor theory has not been well supported in research. Criticisms centre on Herzberg's original methodology and his assumptions, such as the statement that satisfaction is strongly related to productivity. Subsequent research has also shown that if hygiene and motivational factors are equally important to a person, both are capable of motivating.

Regardless of the criticisms, Herzberg's theory has been quite influential and cur- rently is very much in use in research in Asia.17 Few managers worldwide are unfamil iar \vith its recommendations.

McClelland's Theory of Needs You have one beanbag, and five targets are set up in front of you, each farther away than the last. Target A si ts almost within arm's reach. If you hi t it, you get $2. Target B is a bit farther out and pays $4, but only abou t 80 percent of the people who try can hit it. Target C pays $8, and about half the people who try can hit it. Very few people can hit Target 0, but the payoff is $16 for those who do. Finally, Target E pays $32, but it's almost impossible to achieve. Which target would you try for7 If you selected C, you are likely to be a high achiever. Why? Read on.

McClelland's theory of needs was developed by David McClelland and his associ- ates.18 As opposed to, say, Maslow's hierarchy, these needs are more like motivating fac- tors than strict needs for survival. The theory focuses on three needs, defined as follows:

• Need for achievement (nAch) is the drive to excel, to achieve in relation to a set of standards, and to strive to succeed.

• Need for power (nPow) is the need to make others behave in a way that they would not have behaved otherwise.

Chapter 4 Theories of Motivation 131

• Need for affiliation ( nAft) is the desire for friendly and close interpersonal relationships.

McClelland and subsequent researchers focused most of their auen- tion on nAch. High achievers perform best when they perceive their probabil ity of success as 0.5- that is, a 50- 50 chance. 19 They dislike gambling with high odds because they gel no achievement satisfaction from success that comes by pure chance. Similarly, they dislike low odds {high probabi lity of success) because then there is no challenge to their skills. They like to set goals that require stretching themselves a little.

Relying on an extensive amount of research, we can predict some rela- tionships between achievement need and job performance. First, when jobs have a high degree of personal responsibi lity, feedback, and an inter- mediate degree of risk, high achievers are strongly motivated. Second, a high need to achieve does not necessari ly make someone a good manager, especially in large organizations. People with a high achievement need are interested in how well they do personally and not in influencing others to do well. Third, needs for affi liation and power tend 10 be closely related to managerial success. The best managers may be high in their need for power and low in their need for affil iation.20

McClelland's theory has research support, particularly cross-culturally (when cultural d imensions including power distance are taken into account).21 The concept of the need for achievement has received a great deal of research attention and acceptance in a wide array of fields, includ- ing organizational behaviour, psychology, and general business.22 There- fore, in this text we utilize the concept descriptively. The need for power also has research support, bul it may be more familiar to people in broad terms than in relation to the original definition.23 We wi ll d iscuss power much more in Chapter 13. The need for affilia tion is well establ ished and accepted in research. Although it may seem like an updated version of Maslow's social need, it is actually qui te separate. Many people take for granted the idea that human beings have a drive toward relationships, so none of us may completely lack this motivation. However, recent research

Alexandra Greenhill, co-founder and CEO of myBestHelper, is a high achiever. She has been named one of Vancouver's Top 40 under 40 and has also won a Cartier Women's Initiative Award, which is an international award for female entrepreneurs. myBestHelper is a website where people who need care providers (such as nannies, tutors, or babysit- ters) can connect with people who are looking to provide care. Greenhill, who was writing computer

code at an early age, is also a family physician and has helped the BC Medical Association with its work on electronic medical records. She envi-

sions that myBestHelper will be in every major city in Canada within five years.

of Cameroonian and German adults suggests we may be constrained by our personali- ties to the extent that we are high in neuroticism. Agreeableness supports our pursui t of affi liation, while extraversion has no significant effect.24

The degree to which we have each of the three needs is difficu lt lo measure, and therefore the theory is difficu lt to put in to practice. It is more common to find situa- tions in which managers aware of these motivational drivers label employees based on observations made over lime. Therefore, the concepts are helpful, but not often used objectively.

Summarizing Needs Theories The needs theories we have just reviewed all propose a similar idea: Individuals have needs that, when unsatisfied, will result in motivation. For instance, if you have a need to be praised, you may work harder at your task in order 10 receive recognition from your manager or other co-workers. Similarly, if you need money and you are asked to do something (within reason) that offers money as a reward, you will be motivated to complete that task.

Where needs theories differ is in the types of needs they consider and whether they propose a hierarchy of needs (where some needs have lo be satisfied before others) or s imply a list of needs. Exhibit 4-4 illustrates the relationship among the three needs theories that we discussed, and Exhibit 4-5 indicates whether the theory proposes a hierarchy of needs, and the contribution of and empirical support for each theory.

need for affil iation (nAIO The desire for friendly and close in Lerper - sonal relationships.

132 Part 2 Striving for Performance

I\ 0 l' ~ CAREER OBJECTIVES

L~ Why Won't He Take My Advice? The new g uy in t he office is nice enough, but he's straight out of college, and I have 20 years of experience in the field. I'd l ike to help him out, but he won't take it no matter how I approach him. Is there anything I can do to moti- vate him to accept my advice? He badly needs a few pointers.

-James

Dear James:

It's great that you want to help, and

surely you have wisdom to offer. But let's start with this: When is the last

time you took someone else's advice?

Chances are it's easier for you to remember the last time you did not take

someone's advice than when you did. That is because we want success on

our own tenns, and we don't like the

idea that a ready answer was out there all along (and we missed it). "When

somebody says, 'You should do some-

thing,' the subtext is: 'You're an idiot for not already doing it,"' said psychologist

Alan Goldberg. "Nobody takes advice

under those conditions." So under what conditions do pecple take advice?

There are two parts to the moti-

vation equation for advice: what your

co-worker wants to hear, and how you

can approach him. For the first part,

keep this rule in mind: He wants to hear that whatever decisions he has

made are brilliant. If he hears anything

different from that, he is likely to tune you out or keep talking until you come

over to his side.

For the second part, your co- worker's motivation to accept and,

more importantly, act on advice has a

lot to do with how you approach him. Are you likely to "impart your wisdom

to the younger generation?" Anything like "I wish I had known this when I

was just starting out like you" advice

will likely have him thinking you (and your advice) are out of date. Are you

going to give "if I were you, I would do this" advice? He may resent your intru- sion. According to research, what is

most likely to work is a gentle sugges-

tion, phrased as a request. Ravi Dhar, a director at Yale, said, "Interrogatives

have less reactance and may be more

effective." You might say, for instance, "Would you consider trying out this

idea?" Take heart, the problem is not that

we don't like advice-we do, as long

as we seek it. According to research,

we are more motivated toward advice when we are facing important deci-

sions, so good timing may work in your

favour. When he does ask, you may suggest that he write down the param-

eters of his choices and his interpre- tations of the ethics of each decision.

Researcher Dan Ariely has found that

we are much more motivated to make morally right decisions when we have

considered the moral implications in a

forthright manner. In this way, your co- worker may motivate himself to make

the right decisions.

Keep trying!

Sources: D. Ariely, "What Price for the Soul of a Stranger?" Wall Street Journal, May 10-11, 2014, p. C12; J. Queenan, •A Word to the W'tse," Wall Street Journal, February 8-9, 2014, pp. C1-C2; and S. Reddy, 'The Trick to Getting People to Take the Stairs? Just Ask," WaN Street Journal, February 17, 2015, p. R4.

The opinions provided here are of the manag- ers and authors only and do not necessar- ily reffect those of their organizations. The authors or managers are not responsible for any errors or omissions, or for the results obtained from the use of this information. in no event will the authors or managers, or their related partnerships or corporations thereof,

be liable to you or anyone else for any decision made or action taken in reliance on the opin- ions provided here.

EXHIBIT 4-4 Relationship of Various Needs Theories

McClelland

Self-Actualization ~ Need for Achievement I ,-..- Motivators Esteem I

~ Need for Power

Social

Hygiene Need for Affi l iation I Safety Factors

Physiological r

Chapter 4 Theories of Motivation 133

EXHIBIT 4-5 Summarizing the Various Needs Theories

Theory Maslow Herzberg McClelland

Is there a The theory argues Hygiene factors People vary in the hierarchy of that lower-order must be met if a types of needs they needs? needs must be person is not to have. Their motivation

satisfied before be dissatisfied. and how well they one progresses They will not lead perform in a work to higher-order to satisfaction, situation are related to needs. however. Motivators whether they have a

lead to satisfaction. need for achievement, power, or affiliation.

What is the The theory enjoys The popularity of The theory tells theory's impact/ wide recognition giving employees us that high-need contribution? among practising greater responsibility achievers do not

managers. Most for planning and necessarily make managers are controlling their work good managers, familiar with it. can be attributed since high achievers

to this theory (see, are more interested for instance, the in how they do job characteristics personally. model in Chapter 5). It shows that more than one need may operate at the same time.

What empirical Research has It is not really a It has mixed empirical support/ not validated theory of motivation: support, but the criticisms exist? the hierarchical It assumes a link theory is consistent

nature of needs. between satisfaction with our knowledge of However, a 2011 and productivity that individual differences study found that was not measured among people. Good the needs are or demonstrated. empirical support universally related exists on needs to individual for achievement in happiness. particular.

What can we conclude from needs theories? We can safely say that individuals do have needs, and that they can be highly motiva ted to achieve those needs. The types of needs, and their importance, vary by individual, and probably vary over time for the same individual as well. When rewarding individuals, you should consider their specific needs. Obviously, in a workplace, it would be difficult to design a reward structure that could completely take into account the specific needs of every employee.

Process Theories of Motivation Lee Valley Tools has a long history of paying its employees fairly.25 Senior managers are paid no more than 10 times the lowest-paid employee. Twenty-five percent of pre-tax profits are divided

evenly among all employees who have been with the company for at least two years. Leonard Lee believed that work was more than just about the money. He once counselled graduating

university students: "If you do work you love, it's much easier to excel than it is if you are work-

ing primarily for money. It is also easier to be more creative." Treating employees fairly and empowering them are some of the ways that organizations

can motivate their employees.

134 Part 2 Striving for Performance

EXHIBIT 4-6 How Does Expectancy Theory Work?

My professor offers me S 1 million if I memorize the textbook by tomorrow morning.

Expectancy Inst rumentality Valence

Effort- Performance Link

No matter how much effort

Performance- Rewards Link

My professor does not look like someone who has S 1 million.

Rewards- Personal Goals Link

There are a lot of wonderful things I could do with $1 million. I put in, probably not possible

to memorize the text in 24 hours.

E=O I = 0 V = 1

Conclusion: Though I value the reward, I w ill not be mot ivated to do this task.

e Apply the key tenets of expectancy theory to motivating employees.

expectancy theory The theory that indiviruals act based on their evalua- tion of whether their effort will lead to good performance, whether good per- f0<mance will be follovred by a given outcome, and whether that outcome is attractive.

expectancy The belief that effort is related to perf0<mance.

Process lheories go beyond individual needs and focus on lhe broader picture of how one molivales oneself and others. Process lheories include expectancy theory, goal- selling Lheory (and its application, management by objectives), self-efficacy theory, and reinforcement lheory.

Expectancy Theory One of Lhe most widely accepted explanations of motivation is Victor Vroom's expectancy theory.26 Although it has critics, most of the evidence supports Lhe Lheory.27

Expectancy theory says that employees will be motivated to exert a high level of effort when lhey believe lhe following:

• That lhe effort will lead to good performance

• That good performance will lead to organizalional rewards, such as salary increases and/or intrinsic rewards

• That lhe rewards will satisfy employees' personal goals

The theory focuses on the three relationships ( expectancy, inslrumentality, and valence) illuslrated in Exhibit 4-6 and described in lhe following pages. This exhibit also provides an example of how you might apply lhe theory.

Effort- Performance Relationship The effort- performance relationship is commonly called expectan cy. fl answers the question: If I give a maximum effort, will it be recognized in my performance appraisal? For many employees, lhe answer is no. Why? Their skill level may be deficient, which means lhat no matter how hard lhey try, lhey are not likely to be high performers. The organi- zation's performance appraisal syslem may be designed to assess nonperformance fac- tors such as loyalty, inilia tive, or courage, which means more effort will not necessarily resu lt in a higher evalualion. Anolher possibil ity is that employees, rightly or wrongly, lhink lhe boss does not like them. As a result, lhey expect a poor appraisal, regardless of effort. These examples suggest Lhat people wi ll only be motivated if Lhey perceive a link between their effort and lheir performance. Expectancy can be expressed as a probability, and ranges from O to 1. To further provoke your lhoughlS on th is matter, lhe Ethical Dilemma on pages 158- 159 asks you to consider how grade inflation has affected the meaning of grades.

Ch apter 4 Theories of Motivation 135

Performance-Rewards Relationship The performance- rewards rela tionship is commonly called ins trumentality. It answers the question: If I get a good perfonnance appraisal, will it lead co organizational rewards? Many organizations reward things besides performance. When pay is based on factors such as having seniority, being cooperative, or "kissing up" to the boss, employees are likely to see the performance- rewards relationship as weak and demotivating. Instrumentali ty ranges from -1 to + 1. A negative instrumentality indicates that high perfor- mance reduces the chances of getting the desired outcome. An instrumentality of O indicates that no relationship exists between performance and receiving the desired outcome.

Rewards- Personal Goals Relationship The rewards- personal goals relationship is commonly called valence. It answers the question: If I am rewarded, are the rewards auractive to me? The employee works hard in the hope of gelling a promotion but gets a pay raise instead. Or the employee wants a more interesting and challenging job but receives only a few words of praise. Or the employee puts in extra effort to be relocated lo the Paris office but instead is transferred to Singapore. Unfor- tunately, many managers are limited in the rewards they can distribute, which makes it difficult to tailor rewards to individual employee needs. Moreover, some manag-

1\re managers manipulat-

ing em-ployees ,.vhen they link

re,-rards to pr0olucti\ ity'!

\>Vhy do so1ne managers do

a better job of motivating

people than others'?

ers incorrectly assume that all employees want the same thing. They overlook the motivational effects of differentiating rewards. In either case, employee motivation may be lower because the specific need the employee has is no t being met through

f ----- ~

The performance-reward relationship is strong at Mary Kay Cosmetics, which offers a rewards and recognition program based on the achievement of personal goals set by each salesperson. These inde-

pendent consultants are posing in front of Mary Kay Career Cars, one of many rewards that motivate Mary Kay's salesforce.

instrumentality The belief !hat performance is related to rewards.

valence The value or importance an individual places on a reward.

136 Part 2 Striving for Performance

Stock Analyst Recommendations and Valence

Could rewards obscure making accurate recommendations? Stock analysts make their living trying to forecast a stock's future price; the accuracy of their buy, sell, and hold recommendations is what keeps them in work or gets them fired.28 Nevertheless, analysts place few sell ratings on s tocks, although in a steady market, by defin ition, as many stocks are falling as are ris ing.

Expectancy theory provides an explanation: Analysts who place a sell rating on a company's s tock have lo balance the benefits they receive by being accurate against the risks they run by drawing that company's ire. Whal are these risks? They include public rebuke, professional blackball ing, and exclusion from information. Their valence for this is - 1. When analysts place a buy rating on a s tock, lhey face no such trade-off because, obviously, companies love il when analysts recommend lhal investors buy their stock. Expectancy theory suggests that the expected rewards and lheir desirability is higher for buy ratings lhan sell ratings, and that is why buy ratings vastly outnumber sell ratings . . . .. . ... ... . .. . ... ... . .. . .. . ... ... . .. . ... ... . .. . ... ... ... . .. . ... ... .

the reward structure. Valence ranges from -I (very undes irable reward) lo + I (very des irable reward) . OB in the Worliplace shows lhal valence can drive stock analysts lo place more buy ratings than sell ratings.

Expectancy Theory in the Workplace Does expectancy theory work? Al though il has its cri tics, 29 most of the research evidence supports the theory.30 Research in cross-cultural settings has also indicated support for expectancy theory. 31

Exhibit 4-7 gives some suggestions for what a manager can do lo increase the motivation of employees, using insights from expectancy theory. To appreciate how expectancy theory might apply in the workplace, see this chapter's Case Incident- Wage Reduction Proposal on page 160 for an example of what happens when expected rewards are withdrawn.

The Importance of Providing Performance Feedback People do beuer when they gel feedback on how well they are progressing toward their goals because il helps identify discrepancies between what they have done and what they wanl lo do- that is, feedback guides behaviour. But all feedback is not equally potent. Self-generated feedback- with which employees are able lo monitor their own progress or receive feedback from the task process itself- is more powerful than externally generated feedback.32 Recent research has also shown lhal people monitor

EXHIBIT 4-7 Steps to Increasing Motivation, Using Expectancy Theory

Improving Expectancy

Improve the abil ity of the individual to perform.

• Make sure employees have skills for the task.

• Provide training. • Assign reasonable tasks and goals.

Improving Instru m entality

Increase the individual's belief that performance will lead to reward.

• Observe and recognize performance. • Deliver rewards as promised. • Indicate to employees how previous

good performance led to greater rewards.

Improving Valence

Make sure that the reward is meaningful to the individual.

• Ask employees what rewards they value.

• Give rewards that are valued.

lheir progress differently depending on how close they are to goal accomplishment. When lhey have just begun pursuing a goal, lhey derive molivalion from believing that lhe goal is attainable, so they exaggerate their level of progress in order to slay motivated. However, when they are close to accom- plishing their goal, they derive motivation from believing a discrepancy slill exists between where they are currently and where they would like to be, so they downplay their progress to da le to signal a need for higher effort.33

Effec tive feedback- where the employee perceives the appraisa l as fair, the manager as sincere, and the climate as constructive- can lead lhe employee to respond positively and become determined to correct his or her performance deficiencies. 34 Thus, the performance review should be more like a counsell ing aclivity than a judgment process, allow- ing the review lo evolve out of the employee's own self- evaluation. For more lips on performance feedback, see OB in Action- Giving More Effeccive Feedback.

Goal-Setting Theory You have heard the phrase a number of limes: "Just do your best. That's all anyone can ask for." But what does "do your best• mean? Do we ever know whether we have achieved that vague goal? Might we do better with specific goals? Research on

Chapter 4 Theories of Motivation 1 37

~ OB~cr10N Giving More Effective Feedback

Managers can use the following tips to give more effective feedback:

-+ Relate feedback to exisling performance goals and clear expectations.

-+ Give specific feedback tied to observable behaviour or measurable resullS.

-+ Channel feedback toward key result areas.

-+ Give feedback as soon as possible.

-+ Give positive feedback for improvement, not jusl final resullS.

-+ Focus feedback on performance, nol personalities.

-+ Base feedback on accurale and credible information. 35

goal-setting theory, proposed by Edwin Locke, reveals the impressive effects of goal specificity, challenge, and feedback on performance.

Demonstrate the differences among goal-setting theory, self-efficacy theory. and reinforcement theory.

The research on goal-selling theory by Locke and his colleague, Professor Gary Latham at lhe University of Toronto, shows that inlenlions to work toward a goal are

Co-founders Anthony Thomson (left) and Vernon Hill (right) launched their first Metro Bank in London, England, with a long-term goal of adding 200 new branches and capturing up to 10 percent of London's banking mar1<et. Metro Bank challenges employees to reach this high goal by giving customers excep- tionally friendly, convenient, and flexible service.

goal-setting theory A theory that says that specific and difficult goals, with feedback, lead to higher performance.

goal What an individual is trying to accomplish.

138 Part 2 Striving for Performance

management by objectives (MBO) An approach to goal set· ting in which specific measurable goals are jointty set by managers and employees; progress on goals is periodically reviewed: and rewards are allocated on the basis of this progress.

a major source of work moliva tion.36 Goals tell an employee whal needs to be done and how much effort is needed.37 Point/Counterpoint on page 157 considers the benefits of goal setting.

How do managers make goal-setting theory operational? That is often left up to the individua l. Some managers set aggressive performance largels- whal General Electric calls •stretch goals.• Some senior executives, such as Procter & Gamble's former CEO Robert McDonald and Besl Buy's pres ident and CEO Hubert Jo ly, are known for demanding performance goals. But many managers don't set goals. When asked whether their job had clearly defined goals, only a m inority of employees in a survey said yes.38

A more systematic way to utilize goal setting is with management by objectives (MBO), an initiative most popular in the 1970s but still used today. MBO emphasizes participatively set goals that are tangib le, verifiable, and measurable.39 Progress on

goals is periodically reviewed, and rewards are allocated on the basis of this progress. Four ingredients are common to MBO programs: goal specificity, participation in

decision making ( including the selling of goals or objectives), an explicit lime period, and performance feedback.40 Many elemenL~ in MBO programs match the propositions of goal-setting theory.

You will find MBO programs in many business, health care, educational. govern- ment, and nonprofit organizations.41 A version of MBO, called Management by Objec-

tives and Results (MBOR), has been used for 30 years in the governments of Denmark, Norway, and Sweden.42 However, the popularity of these programs does not mean they always work.4 3 When MBO fails, the culprits lend to be unrealistic expectations, lack of commitment by lop management, and inability or unwillingness lo allocate rewards based on goal accomplishment

How Does Goal Setting Motivate? According to Locke, goal setting motivates in four\vays (see Exhibit 4-8):44

• Goals direct attention. Goals indicate where individuals should direct their efforts when they are choosing among things to do. For instance, recognizing that an important assignment is due in a few days, goal setting may encourage you to say no when friends invite you to a movie this evening.

• Goals regulate effort. Goals suggest how much effort an individual should pul in to a given task. For instance, if earning a h igh mark in accounting is more important to you than earning a h igh mark in organizational behaviour, you will likely put more effort into studying accounting.

• Goals increase persistence. Persistence represents the effort spent on a task over lime. When people keep goals in m ind, they will work hard on them, even in

the face of obstacles.

• Goals encourage the development of strategies and action plans. Once goals are sel, individuals can develop plans for achieving those goals. For instance, a goal lo become more fil may include plans lo jo in a gym, work out with friends, and change eating habits.

In order for goals lo be effective, they should be "SMART.• SMART stands for

• Specific: Individuals know exactly what is lo be achieved.

• Measurable: The goals proposed can be tracked and reviewed.

• Allainable: The goals, even if d ifficu lt, are reasonable and achievable.

• Results-oriented: The goals should support the vision of the organization.

• Time-bound: The goals are lo be achieved within a stated lime.

Chapter 4 Theories of Motivation 139

EXHIBIT 4-8 Locke's Model of Goal Setting

i ... Directing attention Goals

motivate by . . .

Regulating effort

Increasing persistence

Task performance

Encouraging the development of strategies and action plans

Source: Adapted from E. A. Locke and G. P. Latham, A Theory of Goal Setting and Task Performance (Englewood Cliffs, NJ: Prentice Hall, 1980).

From Concepts co Skills on pages 160- 161 presents additional ideas on how lo effectively engage in goal setting.

Although goal setting has positive outcomes, it's not unequivocally beneficial. For example, some goals may be too effeclive.45 When learning something is important, goals related lo performance may cause people lo become too focused on outcomes and ignore the learning process. Nor are all goals equally effective. For rote tasks with quantifiable standards of productivity, goals lhal reward quantity can be highly motivating. For other jobs thal require complex thinking and personal investment, goals and rewards for quantity may not be effeaive.46 Finally, individuals may fail to give up on an unatta inable goal, even when il might be beneficial lo do so.

Research has found Lhal people differ in the way they regulate their thoughts and behaviours during goal pursuit.47 Generally, people fall inlo one of two categories, although they could belong lo both. Those with a promotion focus strive for advancement and accomplishment and approach conditions that move them closer toward des ired goals. Those wilh a prevention focus strive to fulfill duties and ob ligations and avoid conditions lhal pull them away from desired goals. Aspects of this concepl are simi lar lo lhe avoidance side of lhe approach- avoidance framework. Although both strategies work toward goal accomplishment, the manner in which they gel there is quite different. As an example, consider studying for an exam. You could engage in promotion-focused activ ities such as reading class materials, or you could engage in prevention-focused activities such as refra ining from doing th ings that would gel in Lhe way of studying, such as playing video games.

You may ask, "Which is the beu er s trategy?" The answer depends on lhe outcome you are striving for. While a promotio n (bul nol a prevention) focus is related to higher levels of Lask performance, organi- zational citizenship behaviour, and innovation, a prevention (but not a promotion) focus is related lo safety performance. Ideally, il's probably

Lilly Singh, born in Scarborough, Ontario, has her own You Tube channel. She started it in 2013, and by spring 2017 she had 11.5 million subscribers, putting her in the top 75 channels. By any measure,

she has been wildly successful with her videos. Singh is also promotion focused; she is driven to do still more because of her accomplishments. As she

explains, "I think once you get successful and you love what you do so much and get opportunities-I think that's why movie stars continue to make so

many movies. It's because success is the most addictive drug, you get addicted to this idea that: 'No, I want more. I want more experiences. I want

more of this."' So she keeps driving ahead.

best to be both promotion and prevention oriented.48 Keep in mind a person's job sa tisfaction will be more heavily impacted by low success when that person has an avoidance (prevention) outlook,49 so set achievable goals, remove distractions, and provide structure for these individuals.so

promotion focus A self-regulation strategy that involves striving for goals through advancement and accomplishment. Goal-selling theory is consistent with expectancy theory. The goals can be con-

sidered the effort- performance link- in other words, the goals determine what mus t be done. Feedback can be considered Lhe performance- reward re lationship, where Lhe individual's efforts are recognized. Finally, the implication of goal setting is thal

prevention focus AseH-regulatioo strategy that involves strilling for goals by fulfilling duties and obligations.

140 Part 2 Striving for Performance

self-efficacy theory Individuals' beliefs in their ability to perform a task influence !heir behaviour.

lhe achievemenl of the goals will resull in in lrinsic salisfaclion (and, o f course, may be Jinked lo exlernal rewards).

Self-Efficacy Theory The basic premise of self-efficacy theory, also known as social cognitive theory or social learning theory, is that individuals' bel iefs in their abi lity lo perform a Lask influence their behaviour.51 The higher your self-efficacy, the more confidence you have in your abil ity lo succeed in a task. So, in d ifficu ll situations, people with low self-efficacy are more likely to lessen their effort or give up allogelher, while those with high self-efficacy will lry harder to masler the challenge.52 Self-efficacy can create a posilive spiral in which those with high efficacy become more engaged in their tasks and then, in turn, increase performance, which increases efficacy furlher.53 One recenl s tudy inlroduced a furlher explanation, in that self-efficacy was associaled with a higher level of focused attention, which led lo increased Lask performance.54

Feedback influences self-efficacy; individuals high in self-efficacy also seem to respond to negalive feedback with increased effort and motivation, while those low in self-efficacy are likely to lessen their effort after negative feedback. 55 Changes in self. efficacy over lime are related to changes in crealive performance as well .56 How can managers help their employees achieve high levels of self-efficacy? By bringing goal- setting theory and self-efficacy theory together.

Goal-setling theory and self-efficacy theory don't compete: They complement each other. As Exhibit 4-9 shows, employees whose managers set d ifficult goals for them will have a higher level of self-efficacy, and sel higher goals for their own performance. Why7 Selling difficult goals for people communicates your confidence in them.

The researcher who developed self-efficacy lheory, Albert Bandura, proposes four ways self-efficacy can be increased:57

• Enactive mastery. Gaining relevant experience with the task or job. If you have been able to do lhe job successfully in the past, then you are more confident that you will be able to do it in the future.

• Vicarious modelling. Becoming more confidenl because you see someone else do ing the task. For example, if your friend loses weight, then it increases your confidence that you can lose weight, too. Vicarious modell ing is mosl effective when you see yourself as similar to the person you are observing.

EXHIBIT 4-9 Joint Effects of Goals and Self-Efficacy on Performance

Manager sets difficull, specific

goal for job or task

Individual has confidence that given level of periormance

will be attained (self -efficacy)

Individual sets higher personal

(self-set) goal for his or he< performance

Individual has higher level of job

or task performance

Source: Based on E. A. Locke and G. P Latham, "Building a Practically Useful Theory of Goal Setting and Task Motivation: A 35-Year Odyssey,' American Psychologist, September 2002, pp. 705-717.

Chapter 4 Theories of Motivation 141

• Verbal persuasion. Becoming more confident because someone convinces you that you have the skills necessary to be successful. Motivational speakers use th is tactic.

• Arousal. An energized state, so the person gets "psyched up• and performs bet- ter. But if the task is something that requires a steady, lower-key perspective (say, carefully editing a manuscript), arousal may in fact hurt performance even as it increases self-efficacy because we might hurry through the task.

Intell igence and personality are absent from Bandura's list but they too can increase self-efficacy.58 People who are intell igent, conscientious, and emotionally stable are so much more likely to have high self-efficacy that some researchers argue that self-efficacy is less important than prior research would suggest. 59 They believe it is partially a by-product in a smart person with a confident personality.

The best way for a manager lo use verbal persuasion is through the Pygmalion effect, a term based on a Greek myth about a sculptor (Pygmalion) who fell in love with a s tatue he carved. The Pygmalion effect is a form of self-fulfilling prophecy in which bel ieving something can make il true. Here, it is often used to describe "that what one person expects of ano ther can come to serve a self-fulfill ing prophecy. "60 An example should make th is clear. In studies, teachers were told their students had very high IQ scores when, in fact, they spanned a range from high to low. Consistent with the Pygmalion effect, the teachers spent more lime with the students they thought were smart, gave them more challenging assignments, and expected more of them- all of which led to higher student self-efficacy and beuer achievement outcomes. 61 This strategy has been used in the workplace too, \vith replicable results and enhanced effects when leader- subordinate rela tionships are strong.62

What are the OB implications of self-efficacy theory? Well, it's a matter of applying Bandura's sources of self-efficacy to the work setting. Training programs often make use of enactive mastery by having people practise and build their skills. In fact, the reason tra ining works is because it increases self-efficacy, particularly when the tra ining is interactive and feedback is given after training.63 Individuals with higher levels of self- efficacy also appear lo reap more benefits from tra ining programs and are more likely to use their training on the job. 64

Reinforcement Theory Goal-setting is a cognitive approach, proposing that an individual's purposes direct his or her actions. Reinforcement theory, in contrast, takes a behaviouristic view, arguing that reinforcement conditions behaviour. The two theories are clearly al odds philosophically. Reinforcement theorists see behaviour as environmentally caused. You need not be concerned, they would argue, with internal cognitive events; what controls behaviour is reinforcers- any consequences that, when immediately following responses, increase the probability that the behaviour wi ll be repeated.

Reinforcement theory ignores the inner state of the ind ividual and concentrates solely on what happens when he or she takes some action. Because it does not concern itself with what initiates behaviour, it is not, strictly speaking, a theory of motivation. But il does provide a powerful means of analyzing what controls behaviour, and this is why we typically consider it in discussions of motivation.65

Operant conditioning theory, probably the most relevant component of reinforce- ment theory for management, argues that people learn to behave to get something they want or to avoid something they don't want. Unlike reflexive or unlearned behav- iour, operant behaviour is influenced by the reinforcement or lack of reinforcement brought about by its consequences. Therefore, reinforcement strengthens a behaviour and increases the likelihood it will be repeated.66

B.F. Skinner, one of the most prominent advocates of operant conditioning, dem- onstrated that people will most likely engage in desired behaviours if they are positively

reinforcement theory A theory that says that behaviour is a function of its consequences.

142 Part 2 Striving for Performance

behaviourism A lheo,y that argues that behaviour follows stimuli in a relalively unthinking manner.

continuous reinforcement A desired behaviour is reinforced each and every time it is demonstrated.

reinforced for doing so; rewards are most effective if they immediately follow the desired behaviour; and behaviour that is not rewarded, or is punished, is less likely to be repeated. The concept of operant conditioning was part of Skinner's broader concept of behaviourism, which asserts that behaviour follows stimuli in a relatively unthinking manner. Skinner's form of radical behaviourism rejects feelings, thoughts, and other states of mind as causes of behaviour. In short, people learn to associate stimulus and response, but their conscious awareness of this association is irrelevant.67

You can see illustrations of operant conditioning everywhere. For instance, a com- missioned salesperson who wants to earn a high income must generate high sales in her territory. Of course, the linkage can also teach individuals to engage in behaviours that work against the best interests of the organization. Assume that your boss says that if you will work overtime during the next three-week busy season, you will be compensated for it at the next performance appraisal. However, when performance appraisal time comes, you find that you are given no positive reinforcement for your overtime work. The next time your manager asks you to work overtime, you will probably decline '

Methods of Shaping Behaviour Behaviour can be shaped in four ways: through positive reinforcement, negative rein- forcement, punishment, and extinction.

Following a response with something pleasant is called positive reinforcement. Follow- ing a response with the termination or withdrawal of something unpleasant is called negative reinforcenienr. Punishnient is causing an unpleasant condition in an attempt to eliminate an undesirable behaviour. Eliminating any reinforcement that is maintaining a behaviour is called extinction. Exhibit 4-10 presents examples of each type of reinforce- ment. Negative reinforcement should not be confused with punishment: Negative reinforcement strengthens a behaviour because it takes away an unpleasant situation.

Schedules of Reinforcement While consequences have an effect on behaviour, the timing of those consequences or reinforcements is also important. The two major types of reinforcement schedules are continuous and intermiuent. A continuous reinforcement schedule reinforces the desired behaviour each and every time it is demonstrated. Take, for example, the case of someone who has historically had trouble arriving at work on lime. Every lime he is not tardy, his manager might compliment h im on his desirable behaviour. In an intermittent schedule, on the other hand, no t every instance of the desirable behaviour is reinforced, but reinforcement is given often enough to make the behaviour worth repeating. Evidence indicates that the intermiuent, or varied, form of reinforcement tends to promote more resistance to extinction than does the continuous form. 68

EXHIBIT 4-10 Types of Reinforcement

Reinforcement Type

Positive reinforcement

Negative reinforcement

Punishment

Extinction

Example

A manager praises an employee for a job well done.

An instructor asks a question and a student looks through her lecture notes to avoid being called on. She has learned that looking busily through her notes prevents the instructor from calling on her.

A manager gives an employee a two-day suspension from work without pay for showing up drunk.

An instructor ignores students who raise their hands to ask questions. Hand-raising becomes extinct.

Chapter 4 Theories of Motivation 143

EXHIBIT 4-11 Schedules of Reinforcement

Reinforcement Nature of Schedule Reinforcement Effect on Behaviour Example

Continuous Reward given after each Fast learning of new Compliments desired behaviour behaviour but rapid

extinction

Rxed-interval Reward given at fixed Average and irregular Weekly time intervals performance with paycheques

rapid extinction

Variable-interval Reward given at variable Moderately high and Pop quizzes time intervals stable performance

with slow extinction

Rxed-ratio Reward given at fixed High and stable Piece-rate pay amounts of output performance attained

quickly but also with rapid extinction

Variable-ratio Reward given at variable Very high performance Commissioned amounts of output with slow extinction sales

An intermittent reinforcement schedule can be of a ratio or inteival type. Ratio schedules depend on how many responses the subject makes. The individual is rein- forced after giving a certain number of specific types of behaviour. Inteival schedules depend on how much lime has passed since the previous reinforcement. With interval schedules, the individual is reinforced on the first appropriate behaviour after a par- ticular time has elapsed. A reinforcement can also be classified as fixed or variable. When these factors are combined, four types of intermittent schedules of reinforcement result: fixed-interval schedule, variable-interval schedule, fixed-ratio schedule, and variable-ratio schedule.

Exhibi t 4-11 summarizes the five schedules of reinforcement and their effects on behaviour.

Although reinforcers such as pay can motivate people, the process is much more complicated than stimulus- response. In its pure form, reinforcement theory ignores feel ings, attitudes, expectations, and other cognitive variables known to affect behaviour. Reinforcement is undoubtedly an important in fluence on behaviour, but few scholars are prepared to argue that it's the only one. The behaviours you engage in at work and the amount of effort you allocate to each task are affected by the consequences that fo llow. If you are consistently reprimanded for outproducing your colleagues, you will likely reduce your productivity. But we might also explain your lower productivity in terms of goals, inequity, or expectancies.

Responses to the Reward System Lee Valley Tools' system of paying its employees fairly has paid off in a number of ways.69 The

turnover rate is low. Employees feel empowered because they are encouraged to take action to

solve customer problems. They don't have to check in with the boss, they are simply expected

to do the right thing. Founder Leonard Lee disliked the nature of his previous job that gave him

responsibility but no authority, so he changed that dynamic for his employees. Even customers

appreciate the sense of fairness that echoes through the store, and how the employees share in the

profits. "That's something that our customers comment on a lot. They appreciate shopping here

because they know the money is not all being funnelled to the top," says Peter Gowdy, assistant

manager at Lee Valley Tools' store on King Street in downtown Toronto.

O Describe why equity and fairness matter in the workplace.

intermittent reinforcement A desired behaviour is reinforced often enough lo make !he behaviour worth repeating, but not every time ii is demonstrated.

fixed-interval schedule The reward is given at fixed time intervals.

variable-interval schedule The reward is given at variable time intervals.

fixed-ratio schedule The reward is given at fixed amounts of output

variable-ratio schedule The reward is given at variable amounts of output.

144 Part 2 Striving for Performance

equity theory A theory !hat asserts that individuals compare their job inputs and outcomes with those of olhers and then respond to eliminate any inequities.

To a large extent, motivation theories are about rewards. The theories suggest that indi- viduals have needs and will exert effort in order to have those needs met. The needs theories specifically identify those needs. Goal-selling and expectancy theories portray processes by which individuals act and then receive desirable rewards (intrinsic or extrinsic) for their behaviour.

Three additional process theories ask us to consider how individuals respond to rewards. Equity theory suggests that individuals evaluate and interpret rewards. Fair process goes one step further, suggesting that employees are sensitive to a variety of fairness issues in the workplace that extend beyond the reward system but also affect employee motivation. Self-determina tion theory examines how individuals respond to the introduction of extrinsic rewards for intrinsically satisfying activities.

Equity Theory Ainsley is a student working toward a bachelor's degree in finance. In order to gain some work experience and increase her marketability, she has accepted a summer internship in the finance department at a pharmaceutical company. She is quite pleased with the pay: $15 an hour is more than other students in her cohort receive for their summer internships. At work she meets Josh, a recent graduate of the same university working as a middle manager in the same finance department. Josh makes $30 an hour.

On the job, Ainsley is a go-getter. She is engaged, satisfied, and always seems will- ing to help others. Josh is the opposite. He often seems disinterested in his job and thinks about quitting. When pressed one day about why he is unhappy, Josh cites his pay as the main reason. Specifically, he tells Ainsley that, com- pared with managers at other pharmaceutical companies, he makes much less. "ll isn't fair,• he complains. "I work just as hard as they do, yet I don't make as much. Maybe I should go work for the competition."

How important is fairness to

you'!

How could someone making $30 an hour be less satisfied wi th h is pay than someone making $15 an hour and be less motivated as a result? The answer lies in equity theory and, more broadly, in principles of organizational justice. According to equity theory, employees compare what they get from their job (their "outcomes," such as pay, promotions, recognition, or having a bigger office) to what they pul into it (their "inputs,• such as effort, experience, and education). They take the ratio of their outcomes to their inputs and compare it to the ratio of others, usually someone similar, such as a co-worker or someone doing the same job. This idea is illustrated in Exhibit 4-12. Ifwe believe our ratio is equal to those with whom we compare our- selves, a state of equity exists and we perceive our situation as fair.

To Whom Do We Compare Ourselves? The referent that an employee seleClS when making comparisons adds lo the complex- ity of equity theory. 70 There are four referent comparisons that an employee can use:

• Self-inside. An employee's experiences in a differen t position inside his or her current organization.

• Self-0111side. An employee's experiences in a situation or position outside his or her current organization.

• Other-inside. Another individual or group of individuals inside the employee's organization.

• Otl1er-0111side. Another individual or group of individuals outside the employ- ee's organization.

Employees might compare themselves with friends, neighbours, co-workers, or col- leagues in other organizations. Allernatively, they might compare their present job with

[[

Chapter 4 Theories of Motivation 145

EXHIBIT 4-12 Equity Theory

Person 1 's Perception

Person 1

Inequity, underrewarded Person 2

Person 1

Equity

l ] Person 2 Person 1

Inequity, overrewarded

Person 2

previous jobs they have had. Which referent an employee chooses wi ll be in fluenced by the information the employee holds about referents, as well as by the auractiveness of the referent. Case Incident- Equity and Executive Pay on page 159 considers whether executive compensation is equitable when compared with the pay of the average worker.

What Happens When We Feel Treated Inequitably? Based on equity theory, employees who perceive an inequity will make one of six choices.7 1

• Change their inputs ( exert less effort if underpaid, or more if overpaid).

• Change their outcomes (individuals paid on a piece-ra te basis can increase their pay by producing a higher quantity of units of lower quality).

• Adjust percepti.ons of self ("I used to th ink I worked at a moderate pace, but now I real ize I work a lot harder than everyone else.")

• Adjust percepci.ons of others ("Mike's job isn't as desirab le as I thought.")

• Choose a different referent ("I may not make as much as my brother-in-law, but I'm doing a lot beuer than my Dad did when he was my age.")

• Leave the field ( quit the job).

]] RESEARCH FINDINGS: Inequitable Pay

\.Vhat can you do if you think your salar~· is

unfair .. ?

i:-• Equity theory has support from some researchers, but not from al l.72 There are some concerns with the propositions. First, inequities created by overpay-

ment do not seem to significantly affect behaviour in most work situations. So don't expect an employee who feels overpaid to give back part of her salary or put in more hours to make up for the inequity. Although individuals may sometimes perceive tha t they are overrewarded, they restore equity by rationalizing their situation ("I'm worth it because I work harder than everyone else"). Second, not everyone is equally equity- sensitive, for various reasons, including feeli ngs of entitlement.73 A few actually prefer outcome- input ratios lower than the referent comparisons. Predictions from equity theory are not likely to be very accurate with these "benevolent types."74

146 Part 2 Striving for Performance

O Demonstrate how organizational justice is a refinement of equity theory.

organizational justice An overall perception of what is fair in the workplace, composed of distributive, procedural, informational, and inter- personal justice.

distributive justice Perceived fair- ness of the amount and allocation of rewards among individuals.

Fair Process and Treatment Although not all of equity theory's propositions have held up, the hypothes is served as an important precursor to the study of organizational justice, or more simply fairness, in the workplace.75 Organizational justice is concerned more broadly with how employees feel authorities and decision makers at work treat them. For the most part, employees evaluate how fairly they are treated along four dimensions, shown in Exhibit 4-13.

Distributive justice is concerned with the fairness of the outcomes, such as pay and recognition, that employees receive. Outcomes can be allocated in many ways. For example, we could distribute raises equally among employees, or we could base them on which employees need money the most. However, as the earl ier discussion on equity theory suggests, employees tend lo perceive their outcomes are fairest when they are distributed equitably.

Does the same logic apply to teams? At first glance, it would seem that distributing rewards equally among team members is best for boosting morale and teamwork- that way, no one is favoured more than another. A study of National Hockey League teams suggests otherwise. Differentiating the pay of team members on lhe basis of their inputs

EXHIBIT 4-13 Model of Organizational Justice

Distributive Justice

Definition: perceived fairness of outcome

Example: I got the pay raise I deserved.

Procedural Justice

Definition: percei'Jed fairness of process used to determine outcome

Example: I had input into the process used to give raises and was given a good explanation of why I received the raise I did.

Informational Justice

Definition: perceived truthfulness of explana~ons for decisions

Example: The raise I received was lower than I had hoped, but my manager explained that department cutbacks were the reason.

Definition: perceived degree to which one is treated with dignity and respect

Example: When telling me about my raise, my supervisor was very nice and complimentary.

Organizational Justice

Defini rion: overall perception of what is fair in the workplace

Example: I think this is a fair place to work.

Chapter 4 Theories of Motivation 14 7

{how well they performed in games) attracted better players lo the team, made it more likely they would stay, and increased team performance.76

The way we have described th ings so far, it would seem that individuals assess distributive justice and equity in a rational, calculative way as they compare their outcome- input ratios to those of others. But the experience of justice, and especially of injustice, is often not so cold and calculated. Instead, people base distributive judg- ments on a feeling or an emotional reaction to the way they think they are being treated relative lo others, and their reactions are often "hot" and emotional rather than cool and rational. 77

Although employees care a lot about what outcomes are distributed ( distribu- tive justice), they also care about how they are distributed. While distributive justice looks at what outcomes are allocated, procedural justice examines how outcomes are allocated.78 What makes procedures more or less fa ir? There are several factors. For one, employees perceive that procedures are fairer when they are given a say in the decision-making process. Having direct influence over how decisions are made, or at the very least being able to present your opinion to decision makers, creates a sense of control and makes us feel empowered (we discuss empowerment more in Chapter 8). Employees also perceive that procedures are fa irer when decision makers follow several "rules." These include making decisions in a consistent manner (across people and over time), avoiding bias (not favouring one group or person over another), using accurate information, considering the groups or people their decisions affect, acting ethically, and remaining open to appeals or correction.

If outcomes are favourable and individuals gel what they want, they care less abou t the process, so procedural justice does nol mauer as much \vhen distributions are per- ceived to be fa ir. It's when outcomes are unfavourable that people pay close atLention to the process. If the process is judged to be fair, then employees are more accepting of unfavourable outcomes.79 Why is this the case? It's likely that employees believe that fa ir procedures, which often have long-lasting effects, will eventually result in a fair outcome, even if the immediate outcome is unfair. Think about it. If you are hoping for a raise and your manager informs you that you did not receive one, you will probably want to know how raises were determined. If il turns out that your manager allocated raises based on merit, and you were simply outperformed by a co-worker, then you are more likely lo accept your manager's decision than if raises were based on favouritism. Of course, if you get the ra ise in the first place, then you will be less concerned with how the decision was made.

Beyond outcomes and procedures, research has shown that employees care about two other types of fairness that have to do with the way they are treated during interac- tions with others. The first type is informational justice, which reflects whether man- agers provide employees with explanations for key decisions and keep them informed of important organizational matters. The more deta iled and candid managers are with employees, the more fa irly treated those employees feel.

Although il may seem obvious that managers should be honest with their employ- ees and not keep them in the dark about organizational matters, many managers are hesitant lo share information. This is especially the case with bad news, which is uncomfortable for both the manager delivering it and the employee receiving it. Explanations for bad news are beneficial when they take the form of excuses after the fact ("I know this is bad, and I wanted to give you the office, but it wasn't my deci- sion") rather than justifications ("I decided lo give the office to Sam, bul having it isn't a big deal•)_so

The second type of justice relevant to interactions between managers and employ- ees is inter personal justice, which reflects whether employees are treated with dig- nity and respect. Compared with the three other forms of justice we have discussed, interpersonal justice is unique in that it can occur in everyday interactions between

procedural justice The perceived fairness of lhe process used lo deter- mine lhe distribution of rewards.

informational justice The degree lo which employees are provided truthful explanations fDf decisions.

interpersonal justice The degree lo which employees are treated with dignity and respect.

148 Part 2 Striving for Performance

f) Apply the predictions of self-determination theory to intrinsic and extrinsic rewards.

self-determination theory A theory of motivation that is concerned with the beneficial effects of intrinsic motivation and the harmful effects of extrinsic motivation.

managers and employees.81 This quality allows managers to take advantage of ( or miss out on) opportunities to make their employees feel fairly treated. Many managers may view treating employees politely and respectfully as too "soft,• choosing more aggres- sive tactics out of a belief that doing so will be more motivating. Although displays of negative emotions such as anger may be motivating in some cases, 82 managers sometimes take this too far.

How much does justice really matter to employees? A great deal, as it turns out. When employees feel fairly treated, they respond in a number of positive ways. All four types of justice discussed in th is section have been linked to higher levels of task perfor- mance and organizational citizenship behaviours (such as helping co-workers) as well as lower levels of counterproductive behaviours (such as shirking job duties). Distribu- tive and procedural justice are more strongly associated with task performance, while informational and interpersonal justice are more strongly associated with organizational ci tizenship behaviour. Even more physiological outcomes, such as how well employees sleep and the state of their health, have been linked to fa ir treatment.83

Why does justice have these posi tive effects? Fair treatment enhances commitment to the organization and makes employees feel it cares about their well-being. In add i- tion, employees who feel fairly treated trust their supervisors more, \vhich reduces uncertainty and fear of being exploited by the organization. Finally; fa ir treatment elicits positive emotions, which in turn prompts behaviours like organizational citizenship behaviour.84 The Experiential Exercise on page 158 helps you understand how managers can foster fa irness in the workplace based on the four types of organizational justice.

Despite all auempts to enhance fairness, perceived injustices are still likely to occur. Fairness is often subjective; what one person sees as unfair, another may see as perfectly appropriate. In general, people see allocations or procedures favouring themselves as fair.85 So, when addressing perceived injustices, managers need to focus their actions on the source of the problem. In addition, if employees feel they have been treated unjus tly, having opportunities to express their frustration has been shown to reduce their desire for retribution.86

How can an organization affect the justice perceptions and rule adherence of its managers? This depends upon the motiva tion of each manager. Some managers are likely to calculate justice by their degree of adherence to the justice rules of the organiza- tion. These managers wi ll try to gain greater subordinate compliance with behavioural expectations, create an identity of being fair to their employees, or establish norms of fa irness. Other managers may be motivated in justice decisions by their emotions. When they have a high positive affect and/or a low negative affect, these managers are most likely to act fairly.

It might be tempting for organizations to adopt strong justice guidel ines in attempts to mandate managerial behaviour, but this isn't likely to be universally effective. In cases where managers have more ru les and Jess discretion, those who calculate justice are more likely to act fairly, but managers whose justice behaviour follows from their affect may act more fairly when they have greater discretion.87

Self-Determination Theory "It's strange,• said Marcia. "I started work at the Humane Society as a volunteer. I put in 15 hours a week helping people adopt pets. And I loved coming to work. Then, three months ago, they h ired me full-time at $11 an hour. I'm doing the same work I did before. But I'm no t finding it as much fun."

Does Marcia's reaction seem counterintuitive? There is an explanation for it. It's called self-determination theory, which proposes that people prefer to feel they have control over their actions, so anything that makes a previously enjoyed task feel more like an obligation than a freely chosen activity will undermine motivation.88 The theory is widely used in psychology, management, education, and medical research.

Chapter 4 Theories of Motivation 149

Much research on self-determination theory in OB has focused on co gnitive evalu ation theo ry, which hypothesizes that extrinsic rewards will reduce intrinsic interest in a task. When people are paid for work, il feels less like something they want to do and more like something they have to do. Self-determination theory also proposes that in addition lo being driven by a need for autonomy, people seek ways to achieve competence and positive connections to others. A large number of studies support self-determination theory.89 Its major implications relate to work rewards.

Extrinsic vs. Intrinsic Rewards Historically, motivation theoris ts have generally assumed that intrinsic motivators are independent of extrinsic motivators. That is, the s timulation of one would not affect the other. But cognitive evaluation theory suggests otherwise. ll argues that when extrinsic rewards are used by organizations as payoffs for superior performance, the in trinsic rewards, which are derived from individuals doing what they like, are reduced.

What does self-determination theory suggest about providing rewards? It suggests that some caution in the use of extrinsic rewards to motivate is wise, and that pursu- ing goals from intrinsic motives (such as a strong interest in the work itself) is more sustaining to human motivation than are extrinsic rewards. Similarly, cognitive evalua- tion theory suggests that providing extrinsic incentives may, in many cases, undermine intrinsic motivation.

For example, if a computer programmer values writing code because she likes lo solve problems, a bonus for writing a certain number of Jines of code every day could feel coercive, and her intrinsic motivation would suffer. She would be Jess interested in the task and might reduce her effort. She may or may not increase her number of lines of code per day in response to the extrinsic motivator. In support, a recent meta- analysis confirms that intrinsic motivation contributes to the quality of work, while incentives contribute to the quantity of\vork. Although intrinsic motivation predicts performance whether or not there are incentives, il may be less of a predictor when incentives are tied to performance directly (such as with monetary bonuses) rather than indirectly.90

A more recent outgrowth of cognitive evaluation research is self-concordance, which considers how strongly people's reasons for pursuing goals are consistent with their interests and core values.91 Across cultures, if individuals pursue goals because of intrinsic interest, they are more likely to a tta in goals, are happier when they do, and are happy even if they do not. 92 Why7 Because the process of striving toward goals is fun whether or not the goal is achieved. Recent research reveals that when people do not enjoy their work for intrinsic reasons (those who work because they feel obligated to do so) can sti ll perform well, although they experience higher levels of strain as a result.93 In contrast, people who pursue goals for extrinsic reasons (money, status, or other benefits) are Jess likely to attain goals and less happy even when they do. Why1 Because the goals are less meaningful to them. 94

What does all of this mean? For individuals, it means you should choose your job for reasons other than extrinsic rewards. For organizations, it means managers should provide intrinsic as well as extrinsic incentives. Managers need lo make the work inter- esting, provide recognition, and support employee growth and development. Employees who feel that what they do is within their control and a result of free choice are likely to be more motivated by their work and committed to their employers.95

Increasing Intrinsic Motivation Our discussion of motivation theories and our discussion of how to apply motiva- tion theories in the workplace has focused more on improving extrinsic motivation. Professor Kenneth Thomas of the Naval Postgraduate School in Monterey, California, developed a model of intrinsic motivation that draws from the job characteristics model

cognitive evaluation theory Offering extrinsic rewards ~°' example, pay} f0< w0<k effort that was previously rewarding intrinsically will tend to docrease the overall lMI of a persoo's motivatioo.

self-concordance The degree to which a person's reasons 10< pursu- ing a goal are coosistent with the person's interests and core values.

150 Part 2 Striving for Performance

O Discuss the ethics behind motivation theories.

(see Chapter 5) and cognitive evaluation theory.96 He identified four key rewards that increase an individual's intrinsic motivation:

• Sense of choice. The opportunity to select what one wi ll do and perform the way one thinks best. Individuals can use their own judgment lo carry out the task.

• Sense of competence. The feel ing of accomplishment for doing a good job. Indi- viduals are more likely to feel a sense of accomplishment when they carry out challenging tasks.

• Sense of meaningfulness. The opportunity to pursue worthwhile tasks. Individu- als feel good about what they are doing and believe that what they are doing matters.

• Sense of progress. The feeling of accomplishment that one is making progress on a task, and that it is moving forward. Individuals feel that they are spend- ing their time wisely in doing their jobs.

Thomas also identified four sets of behaviours managers can use to build in trinsic rewards for their employees:

• Leading for choice. Empowering employees and delegating tasks.

• Leading for competence. Supporting and coaching employees.

• Leading for meaningfulness. Inspiring employees and modell ing desired behaviours.

• Leading for progress. Monitoring and rewarding employees.

Exhibit 4-14 describes what managers can do lo increase the likelihood that intrinsic rewards are motivational.

Motivation for Whom? An ongoing debate among organizational behaviour scholars is, Who benefits from the theories of motivation?97 Some argue that motivation theories are only intended to help managers get more productivity out of employees, and are little concerned with employees beyond improvements in productivity. Thus, needs theories, process

EXHIBIT 4-14 Building Blocks for Intrinsic Rewards

Leading for Choice Leading for Competence

• Delegated authority • Knowledge

• ll'ust in workers • Positive feedbad<

• Security (no punishment) for honest mistakes • Skill recognition

• A clear purpose • Challenge

• Information • High, noncomparatlve standards --Leading f or Mean ingfulness Leading for Progress • A noncynical climate • A collaborative climate

• Clearly identified passions • Milestones

• An excitjng vision • Celebrations

• Relevant task purposes • Access to customers

• Whole tasks • Measurement of Improvement

Chapter 4 Theories of Motivation 151

theories, and Lheories concerned with fa irness could be interpreted not as ways lo help employees gel what they wanl or need, but ralher as means lo help managers gel what Lhey wanl from employees. In his review of "meaningful work" lileralure, professor Chrislopher Michaelson of New York University Slern finds Lhal researchers propose that organizations have a moral obligation 10 provide employees wilh •free choice lo enter, honest communicalion, fair and respeclfu l treatment, intellectual challenge, considerable independence to determine work methods, democratic participation in decis ion making, moral development, due process and justice, nonpalernalism, and fair compensation. •98

Michaelson suggests that scholars concerned with meaningful work should focus on the condilions of the workplace and improving those conditions. He also suggeslS lhal researchers have a moral obligation to make workplaces bener for employees. While produclivity may be a by-product of belier work conditions, the importanl thing is for employers lo lreal employees well, and lo consider the needs of employees as an end in itself. By conlrast, he argues, mainslream motivation theory does nol consider lhe moral obligation of employers lo their employees, but il does consider ways lo ensure employees are more productive.

While th is debate is nol easi ly resolved, and may well guide the elabora tion of moti- valion theories in years lo come, il does inspire a provocative analysis of why employers provide lhe workplace condilions they do.

Job Engagement When Joseph reporls lo his job as a hospital nurse, il seems lhal everything else in his life goes away, and he becomes complelely absorbed in whal he is doing. His emotions, thoughts, and behaviour are all directed toward patienl care. In facl, he can gel so caught up in his work lhat he isn't even aware of how long he's been there. As a resu lt of lh is Lo ta! commilrnent, he is more effeclive in providing patient care and feels uplifled by his lime al work.

Joseph has a high level of job engagement, the investment of an employee's physi- cal, cognitive, and emotional energies into job performance. 99 Praclising managers and scholars have become inleresled in facil itating job engagement, believing faclors deeper than liking a job or finding it interesting drives performance. Studies altempt lo measure this deeper level of commitment.

The Gallup organization has been sludying the extent to which employee engage- ment is linked to positive work outcomes for mill ions of employees over lhe pasl 30 years. •00Toey have found there are far more engaged employees in highly successful organizations lhan in average ones, and groups wilh more engaged employees have higher levels of productivily, fewer safely incidents, and lower turnover. Academic slud- ies have also found positive oulcomes. For instance, one review found higher levels of engagement were associa ted with task performance and citizenship behaviour. 101

What makes people more likely lo be engaged in their jobs7 One key factor is the degree 10 which an employee believes il is meaningful to engage in work. This is parlially delermined by job characteristics and access lo sufficienl resources to work effectively. 102 Another factor is a malch between the individual's values and those of Lhe organization. !03 Leadership behaviours tha t inspire workers lo a greater sense of mission also increase employee engagement. 104

One of the critiques of lhe concept of engagement is that lhe conslruct is parlially redundanl wilh job alliludes like salisfaclion or stress_ !Os However, engagement queslionnaires usua lly assess motivalion and absorption in a task, quite unlike job sa tisfaclion queslionnaires. Engagement may also predicl importanl work oulcomes beller than trad ilional job attitudes. 106 Other crilics nole lhere may be a "dark side" lo engagement, as evidenced by positive relalionships between engagement and work- fami ly conflict 1° 7 ll is possible individuals mighl grow so engaged in Lheir work roles

job engagement The investment of an employee's physical. cogni- tive, and emotiooal energies into job performance.

152 Part 2 Striving for Performance

0 Summarize the essence of what we know about motivating employees.

lha t fam ily respons ibil ities become an unwelcome intrusion. Also, an overly high level of engagemenl can lead to a loss of perspective and, ullimately, burnout Further research exploring how engagement relates to these negative outcomes may help clarify whether some highly engaged employees might be gelling "too much of a good th ing.•

Putting It All Together While it's always dangerous to synthesize a large number of complex ideas into a few simple guidelines, the following suggestions summarize the essence of what we know about molivaling employees in organiza tions:

• Recognize individual differences. Employees have different needs and should nol be lreated alike. Managers should spend the lime necessary lo understand what is important to each employee and then align goals, level of involve- ment, and rewards with individual needs.

• Use goals and feedback. Employees should have challenging, specific goals, as well as feedback on how well they are doing in pursuit of those goals.

• Allow employees co participate in decisions chat affect chem. Employees should contribute lo a number of decisions lhal affect them: selling work goals, choosing their own benefi ts packages, solving productivity and quality prob- lems, and the like. Doing so can increase employee productivity, commitment to work goals, molivalion, and job salisfaction.

• When giving rewards, be sure that they reward desired performance. Rewards should be Jinked to the type of performance expected. It's important that employees perceive a clear linkage. How closely rewards are actually correlated to perfor- mance criteria is Jess important than the perception of th is relationship. If indi- viduals perceive this relalionship to be low, the results will be low performance, a decrease in job satisfaction, and an increase in turnover and absenteeism.

• Check the system for equity. Employees should be able to perceive rewards as equaling with the inputs they bring lo the job. Al a s implislic level, this means that experience, skills, abil ities, effort, and other obvious inputs should explain differences in performance and, hence, pay, job assignments, and olher obvious rewards.

(0) ~~.~!:~"'l::~:~~T!:~ wm d~eloped io <he Uoi<ed ""~ "'d ~ Canada. 108 Goal-selling and expectancy theories emphasize goal accom- plishment as well as rational and individual thought- characterislics consistent wi th Canadian and American culture. Let's look at several molivalion theories and consider their cross-cultural lransferabil ity.

Needs Theories Maslow's needs lheory says people start at the physiological level and progress up lhe hierarchy to safety, social (belonging), self-esteem, and self-actual ization needs. This hierarchy, if it applies al all, aligns with Canadian and US culture. In Japan, Greece, and Mexico, where uncertainty-avoidance characterislics are strong, security needs would be on lop of the hierarchy. Countries that score high on nurturing characteristics- Denmark, Sweden, Norway, the Netherlands, and Finland- would have social needs on top. !09 Group work will motivate employees more when lhe country's culture scores high on the nurturing criterion.

Chapter 4 Theories of Motivation 153

The view that a high achievement need acts as an internal motivator presupposes two cultural characteristics- will ingness to accept a moderate degree of risk (which excludes countries with strong uncertainty-avoidance characteristics) and concern with performance (which applies lo countries with strong achievement characteristics). This combination is found in Anglo-American countries such as the United Stales, Canada, and Great Britain 110 and much less so in Chile and Portugal.

Goal-Setting Theory Setting specific, difficult, individual goals may have different effects in different cul- tures. Most goal-setting research has been done in the United Stales and Canada, where individual achievement and performance are most highly valued. To da te, research has not shown that group-based goals are more effective in collectivis tic than in individu- al istic cultures. There is evidence that in collectivistic and high power-distance cultures, achievable moderate goals can be more highly motivating than difficult ones. 111 Finally, ass igned goals appear to generate greater goal commitment in high rather than low power-distance cultures.112 Much more research is needed lo assess how goal constructs might differ across cultures.

Equity Theory and Fairness Equi ty theory has gained a strong following in Canada and the United States because the reward systems assume that employees are highly sensitive to equity in reward allo- cations and equity is meant to closely tie pay to performance.

Meta-analytic evidence shows individuals in both individualistic and collectivistic cultures prefer an equitable distribution of rewards over an equal division ( everyone gets paid the same regard less of performance). 113 Across nations, the same basic principles of procedural justice are respected, and workers around the world prefer rewards based on performance and skills over rewards based on seniority. 114 However, in collectivistic cultures employees expect rewards lo reflect their individual needs as well as their per- formance.115 Other research suggests that inputs and outcomes are valued differently in various cultures.116 Some cultures emphasize status over individual achievement as a basis for allocating resources. Materialistic cultures are more likely to see cash compen- sation and rewards as the most relevant outcomes of work, whereas relational cultures will see social rewards and s tatus as important outcomes. International managers must consider the cultural preferences of each group of employees when determining what is "fair• in different contexts.

Justice Across nations, the same basic principles of procedural justice are respected in that employees around the world prefer rewards based on performance and skills over rewards based on seniority. 117 However, inputs and outcomes are valued differently in various cultures. us

We may think of justice differences in terms of Hofstede's cultural dimensions (see Chapter 3). One large-scale study of over 190 000 employees in 32 countries and regions suggested that justice perceptions are most important to people in coun- tries with individualistic, feminine, uncertainty avoidance, and low power-distance values.119 Organizations can tailor programs to meet these justice expectations. For example, in countries that are highest in indiv idualism, such as Aus tralia and the United States, competitive pay plans and rewards for superior individual performance will enhance feelings of justice. In countries dominated by uncertainty avoidance, such as France, fixed pay compensation and employee participation may help employees feel more secure. The dominant dimension in Sweden is femin inity, so relational con- cerns are considered important. Swedish organizations may therefore want lo provide

154 Part 2 Striving for Performance

LESSONS LEARNED

• Recognize individual differences.

• Coals and feedback help motivate individuals.

• Rewards signal what is important to the en1ployer (or leader).

work-l ife balance initiatives and social recognition. Austria, in contrast, strongly values low power-distance. Ethical concerns may be foremost lo individuals in perceiving justice in Austrian organizations, so it will be important for organizations to justify inequality between leaders and workers and provide symbols of ethical leadership.

Intrinsic and Extrinsic Motivation A recent study found interes ting d ifferences in managers' perceptions of employee motivation. 120 The study examined managers from three distinct cultural regions: North America, Asia, and Latin America. The results of the study revealed that North Ameri- can managers perceive their employees as being motivated more by extrinsic factors (for example, pay) than intrinsic factors (for example, doing meaningful work). Asian managers perceive their employees as being motivated by both extrinsic and intrinsic factors, while Latin American managers perceive their employees as being motivated by intrinsic factors.

Even more interesting, these differences affected evaluations of employee perfor- mance. As expected, Asian managers focused on both types of motivation when evaluat- ing their employees' performance, and Latin American managers focused on intrinsic motivation. Oddly, North American managers, though bel ieving that employees are motivated primari ly by extrinsic factors, actually focused more on intrinsic factors when evaluating employee performance. Why the paradox? One explanation is that North Americans value uniqueness, so any deviation from the norm- such as being perceived as being unusually high in intrinsic motivation- is rewarded.

Lalin American managers' focus on intrinsic motivation when evaluating employees may be related to a cultural norm termed simpat(a, a tradition that compels employees Lo d isplay their internal feelings. Consequently, Latin American managers are more sensitized lo these d isplays and can more easily notice their employees' intrinsic motivation.

Cross-Cultural Consistencies Don't assume that there are no cross-cultural consistencies. The desire for interesting work seems important to almost all employees, regardless of their national culture. In a study of seven countries, employees in Belgium, Britain, Israel, and the United States ranked work number one among 11 work goals, and employees in Japan, the Netherlands, and Germany ranked il either second or th ird. 121 In a study comparing job-preference outcomes among graduate s tudents in the United States, Canada, Aus- tra lia, and Singapore, growth, achievement, and responsibility had identical rankings as the top three. 122 Meta-analytic evidence shows that individuals in both individual istic and collectivistic cultures prefer an equitable distribution of rewards (the most effec- tive employees get paid the most) over an equal division ( everyone gets paid the same regardless of performance). 123 Across nations, the same basic principles of procedural justice are respected, and employees around the world prefer rewards based on perfor- mance and skills over rewards based on seniority. 124

Summary The motivation theories in this chapter differ in their predictive strength. Maslow's hierarchy of needs, Herzberg's two-factor theory, and McClelland's theory of needs focus on needs. None of these theories has found widespread support, although support for McClelland's is the strongest, particularly regard ing the relationship between achieve- ment and productivity. Expectancy theory can be helpful, but it assumes that employ- ees have few constraints on decision making, such as bias or incomplete information,

Chapter 4 Theories of Motivation 155

which limits its appl icability. Goal-selling theory can be helpful but does not cover absenteeism, turnover, or job satisfaction. Reinforcement theory can be helpful, but not regarding employee satisfaction or the decision to qu it. Equity theory's strongest legacy is that it provided the spark for research on organizational justice, which has more sup- port in the li terature. Self-determination theory and cognitive evaluation theory have meri ts to consider.

SNAPSHOT SUMMARY

What Is Motivation?

Needs Theories of Motivation • Maslow's Hierarchy of Needs

TheCJIY

• Two-Factor TheCJIY • McClelland's TheCJIY

of Needs

• Summarizing Needs Theories

Mylab Management

Process Theories of • Fair Process and Treatment Motivation • Self-Determination Theory • Expectancy Theory • Increasing Intrinsic • Goal-Setting Theory Motivation

• Self-Efficacy Theory • Reinforcement Theory Motivation for Whom?

• Job Engagement Responses to the • Putting It All Together Reward System • Equity Theory

Study, practise, and explore real business situations with these helpful resources:

• Study Plan: Check your understanding of chapter concepts with self-study quizzes.

• Online Lesson Presentations: Study key chapter topics and work through interactive assessments to test your knowledge and master management concepts.

• Videos: Learn more about the management practices and strategies of real companies.

• Simulations: Practise management decision-making in simulated business environments.

-"' a:I C)

.,. for Review

1 . What are the three key elements of motivation?

2. What are some early theories of motivation? How applicable are

they today?

3. What are the key tenets of expectancy theory?

4. What are the key principles of goal-setting theory, self-efficacy theory, and reinforcement theory?

5. Why do equity and fairness mat- ter in the workplace?

6. How is organizational justice a refinement of equity theory?

7. How do the predictions of self- determination theory apply to intrinsic and extrinsic rewards?

8. What are some of the ethical issues with motivation theories?

9. What is the essence of what we know about motivating employees?

for Managers

• Consider goal-setting theory: Clear and difficult goals often lead to higher levels of employee productivity.

• Consider how reinforcement theory applies to the quality and quantity of work, persistence of effort, absenteeism, tardiness, and accident rates.

• Consult equity theory to help you understand productivity, satis- faction, absence, and turnover variables.

• Expectancy theory offers a pow- erful explanation of performance variables such as employee productivity, absenteeism, and turnover.

• Make sure extrinsic rewards for employees are not viewed as coercive, but instead provide information about competence and relatedness.

for You

• Don't think of motivation as something that should be done for you. Think about motivating others and yourself as well. How can you motivate yoursett? After finishing a particularly long and dry chapter in a text, you could take a snack break. Or you might buy yourself a new album once that major accounting assignment is finished.

• Be aware of the kinds of things that motivate you, so you can choose jobs and activities that

suit you best.

• When working in a group, keep in mind that you and the other members can think of ways to make sure everyone feels moti- vated throughout the project.

Chapter 4 Theories of Motivation 157

GOALS GET YOU TO WHERE YOU WANT TO BE

POI NT Of course this is a true statement.125 Goal-setting theory

is one of the best -supported theories in all the motivation

literature. Study after study has consistently shown the

benefits of goals. Want to excel on a test, lose a certain

amount of weight, obtain a job with a particular income

level, or improve your golf game? If you want to be a

high performer, merely set a specific, difficult goal and

let nature take its course. That goal will dominate your

attention, cause you to focus, and make you try harder.

All too often, people are told by others to simply "do

their best.• Could anything be more vague? What does

"do your best" actually mean? Maybe you feel that your

"best• on one day is to muster a grade of 50 percent on

an exam, while your "best" on another day is an 80. But

if you were given a more difficult goal-say, to score a 95

on the exam-and you were committed to that goal, you

would ultimately perform better. Edwin Locke and Gary Latham, the researchers best

known for goal-setting theory, put it best when they said: "The effects of goal setting are very reliable." In short,

goal-setting theory is among the most valid and practical

theories of motivation in organizational psychology.

COUNTERPOINT Sure, a lot of research has shown the benefits of goal

setting, but those studies ignore the harm that is often

done by it. For one, how often have you set a •stretch"

goal, only to see yourself fail later? Goals create anxi-

ety and worry about reaching them, and they often cre-

ate unrealistic expectations as well. Imagine those who

had set a goal to earn a promotion in a certain period

of time (a specific, difficult goal), only to find themselves

laid off once the recession hit. Or how about those who

envisioned a retirement of leisure yet had to take on a

part-time job or delay retirement altogether in order to

continue to make ends meet. When too many things are

out of our control, our difficult goals become impossible.

Consider this: Goals can lead to unethical behav-

iour and poorer performance. How many reports have

you heard over the years about teachers who "fudged"

students' test scores in order to achieve educational

standards? Another example: When Ken O'Brien, as

a professional quarterback for the New York Jets, was

penalized for every interception he threw, he achieved

his goal of fewer interceptions quite easily-by refusing

to throw the ball even when he should have.

In addition to this anecdotal evidence, research has directly linked goal setting to cheating. We should heed

the warning of Professor Maurice E. Schweitzer- "Goal-

setting is like a powerful medication" - before blindly

accepting that specific, difficult goal.

158 Part 2 Striving for Performance

BREAKOUT GROUP EXERCISES

Form small groups to discuss the following topics, as assigned by your instructor:

1. One of the members of your team continually arrives late for meetings and does not turn drafts of assignments in on time. Choose one of the available theories and indicate how the theory explains the member's current behaviour and how the theory could be used to motivate the group member to perform more responsibly.

2. You are unhappy with the performance of one of your instructors and would like to encourage the instructor to present more lively classes. Choose one of the available theories and indicate how the theory explains the instructor's current behaviour. How could you as a student use the theory to motivate the instructor to present more lively classes?

3. Harvard University recently changed its grading policy to recommend to instructors that the average course mark should be a 8 . This was the result of a study showing that more than 50 percent of students were receiving an A or A- for coursework. Harvard students are often referred to as "the best and the brightest,• and they pay over US$36 000 per academic year for their education, so they expect high grades. Discuss the impact of this change in policy on the motivation of Harvard students to study harder.

EXPERIENTIAL EXERCISE

Organizational] ustice Task Purpose

This exercise will highlight the four primary sources of organizational justice and help you understand what managers

can do to ensure fairness in the workplace.

Time

Approximately 20 to 30 minutes.

Instructions Break into groups of 3 or 4.

1. Each person should recall an instance in which he or she was (a) treated especially fairly and (bl treated especially unfairly. Work-related instances are preferable, but nonwork examples are fine too. What do the stories have in common?

2. Spend several minutes discussing whether the instance was more distributive, procedural, informational, or interpersonal in nature. What was the source of the fair/unfair treatment? How did you feel, and how did you respond?

3. Each group should develop a set of recommendations for handling the unfair situations in a fairer manner. Select a leader for your group who will briefly summarize the unfair instances, along with the group's recommendations for handling them better. The discussion should reflect the four types of justice discussed in this chapter (distribu- tive, procedural, informational, and interpersonal).

ETHICAL DILEMMA

The New GPA In college and university classrooms, is an A the new

8 ?126 Grade inflation is of particular concern in graduate

programs, where it is not uncommon for 75 percent of

grades to be As. In fact, the most frequent grade given

in US universities is an A, by 43 percent. This percent-

age has risen from 30 percent 20 years ago, representing

a significant increase. At Harvard, the average grade is

an A- . While this may sound great to students, there is

a powerful downside to grade inflation. If an A- is the new class average, the crowding of grades at the top

end of the scale can sap students' motivation to work

hard. Organizations also find it harder to evaluate candi· dates' transcripts if grades are inflated. This means they

must rely more on results of standardized tests, which

were often taken in high school and may not reflect a stu-

dent's current or best capabilities. Professors, too, may

be less motivated to accurately assess and teach stu-

dents through strong grading feedback that would help

students learn.

There is no easy solution to the phenomenon of grade

inflation. In a culture where •everyone does it," schools

that take a stand against grade inflation produce students

with potentially lower grades- but no less education-

than their peers. These students may not be able to stand

out in the increasingly competitive job market even when

they are equally prepared. Over time, their schools will not

be able to boast of the accomplishments of their gradu-

ates in terms of grades and employment placements.

No longer will these schools look as attractive to poten-

tial students, so enrolment and thus revenue will suffer,

Chapter 4 Theories of Motivation 159

endangering the institution's ability to teach. Therefore,

eliminating grade inflation poses powerful disincentives,

and few (if any) post -secondary schools have successfully

tried it. There is much more motivation for organizations,

schools, professors, and students to continue grade infla-

tion practices, even though they may be wrong.

Quest.ions

1. How might forcing equitable grade distributions with C as average motivate students?

2. If around 75 percent of grades in graduate pro- grams are As, have grades become meaningless as motivators?

3. Provinc ial funding of many post-secondary schools has decreased dramatically over the years, increas- ing the pressure on administrators to generate revenue through tuition increases, recruiting more international students, and other means. How might this pressure create ethical tensions among the competing needs of generating revenue, retaining students, and providing accurate grading?

CASE INCIDENTS

Equity and Executive Pay Few topics in the business press grab headlines and

ignite the public like the compensation packages received

by top management, which continue to rise.127 CEOs in

Canada's 100 largest companies earned a median com-

pensation of $5.6 million in 2013, a level of compensation

just under that received before the economic downturn.

How do compensation committees set executive

compensation? In many cases, it comes down to equity

theory and depends on the referent others to which the

CEO is compared. To determine a "fair" level of pay for

a given CEO, members of a compensation board find

out how much CEOs with similar levels of experience in

similar firms (similar inputs) are being paid and attempt to

adjust compensation (outcomes) to be similar. So, CEOs

in large tech firms are paid similarly to CEOs in other large

tech firms, CEOs in small marketing companies are paid

similarly to CEOs in other small marketing companies,

and so forth. Proponents of this practice consider it to be

"fair" because it achieves equity.

However, critics of high CEO pay want to change the

perspective by comparing the CEO's pay to the pay of

the average employee. For example, Canada's 100 high-

est paid CEOs are paid 171 times more than the average

employee. From this perspective, CEO pay is grossly

inequitable and thus "unfair.•

In response, many CEOs, such as Mark Zuckerberg

of Facebook and Larry Page of Google, have taken $1

annual salaries, though they still earn substantial com-

pensation by exercising their stock options. In addition,

shareholders of some companies, such as Verizon, are

playing a greater role in setting CEO compensation by

reducing awards when the company underperforms.

Questions

1. How does the executive compensation issue relate to equity theory? How should we determine what is a "fair" level of pay for top executives?

2. Individuals generally think performance should be essential or very important in deciding pay. What might be the positive motivational consequences for average employees if CEO pay is tied to performance?

160 Part 2 Striving for Performance

Wage Reduction Proposal The following proposal was made to employees of Montreal -

based Quebecor's Videotron cable division: 12s

The employees, members of Canadian Union of Public

Employees (CUPE) Local 2815, were reluctant to agree to

these conditions. If they accepted, 300 to 400 employees

were likely to be laid off, and the company could still con -

sider outsourcing the work later.

Em ployees are asked to increase the number of

hours worked per week to 40 from 35, while receiv-

ing the same pay as working the shorter workweek.

In addition, they are asked to accept less paid holi-

day time. Quest.ions

Quebecor spokesman Luc Lavoie justified the request

made to the employees by saying, "They have the richest

work contract in the country, including eight weeks of

holiday and high absenteeism."

1. Analy2e this proposal in terms of motivation concepts.

2. As an employee, how would you respond if you received this proposal?

3. If you were the executive vice-president of the com- pany, and a number of your non-unionized employ- ees asked you for a holiday cash gift, would you have responded differently? Why or why not?

The company made it clear that if this proposal were

not accepted, it would sell its cable television and Internet

installation and repair operations to Entourage Technology

Solutions.

Setting Goals You can be more effective at set - ting goals if you use the following

eight suggestions: 129

1. Identify your key tasks. Goal setting begins by defining what it is that you want to accomplish.

2. Establish specific and challenging goals for each key task. Identify the level of performance expected. Specify the target toward which you will work.

3. Specify the deadlines for each goal. Putting deadlines on each goal reduces ambiguity. Deadlines, however, should not be set arbitrarily. Rather, they need to be realistic, given the tasks to be completed.

4. Allow the employee to participate actively. When employees par- tic ipate in goal setting, they are more likely to accept the goals. However, it must be sincere participation. That is, employees must perceive that you are truly seeking their input, not just going through the motions.

5. Prioritize goals. When you have more than one goal, it's important for you to rank the goals in order of importance. The purpose of prioritiz- ing is to encourage you to take action and expend effort on each goal in proportion to its importance.

6. Rate goals for difficulty and importance. Goal setting should not encourage people to choose easy goals. Instead, goals should be rated for their difficulty and importance. When goals are rated, indi- viduals can be given credit for trying difficult goals, even if they don't fully achieve them.

7. Build in feedback mechanisms to assess goal progress. Feedback lets you know whether your level of effort is sufficient to attain the goal. Feedback should be frequent and recurring.

8. Unk rewards to goal attainment. Linking rewards to the achievement of goals will help motivate you.

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

You worked your way through college while holding down a part-time job

bagging groceries at the Food Town supermarket chain. You liked working

in the food industry, and when you graduated, you accepted a position

with Food Town as a management trainee. Three years have passed, and

you have gained experience in the grocery store industry and in operating

a large supermarket. About a year ago, you received a promotion to store

manager at one of the chain's locations. One of the things you have liked

about Food Town is that it gives store managers a great deal of autonomy

in running their stores. The company provides very general guidelines to

its managers. Top management is concerned with the bottom line; for the

most part, how you get there is up to you. Now that you are finally a store

manager, you want to establish an MBO-type program in your store. You

like the idea that everyone should have clear goals to work toward and

then be evaluated against those goals.

Your store employs 70 people, although except for the managers, most

work only 20 to 30 hours per week. You have 6 people reporting to you:

an assistant manager; a weekend manager; and grocery, produce, meat,

and bakery managers. The only highly skilled jobs belong to the butchers,

who have strict training and regulatory guidelines. Other less-skilled jobs

include cashier, shelf stocker, maintenance worker, and grocery bagger.

Specifically describe how you would go about setting goals in your

new position. Include examples of goals for the jobs of butcher, cashier,

and bakery manager.

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

1. Set personal and academic goals you want to achieve by the end of this term. Prioritize and rate them for difficulty.

2. Where do you want to be in five years? Do you have specific five-year goals? Establish three goals you want to achieve in five years. Make sure these goals are specific, challenging, and measurable.

Chapter 4 Theories of Motivation 161

• ••••••••••••••••••••

Practising Skills

• ••••••••••••••••••••

Reinforcing Skills

162

Motivation in Action

How can a global travel company

keep its workforce motivated? It starts with

freedom, happiness, and community.

O Demonstrate how the different types of variable-pay programs can increase employee motivation. f) Show how flexible benefits can be used to motivate. 9 Identify the motivational benefits of intrinsic rewards. C, Describe the job characteristics model and the way it motivates. 9 Compare the main ways jobs can be redesigned. 0 Explain how specific alternative work arrangements can motivate employees. f) Describe how employee involvement programs can motivate employees. e Describe how knowledge of what motivates people can be used to make organizations more motivating.

oronto-based G Adven- tures' founder and CEO Bruce Poon Tip has spent nearly 30 years

chan

are the

building an international Jenn~er Roberts/Contour/Getty mages adventure tourism com-

' ar e

, ey can t wor \ d

ho dO.

pany where employees would be happy and motivated, and strive to do a good job every day.1 The company was named a platinum winner in 2017 for being one of Canada's Best Managed Companies. To earn platinum, com-

panies must have been named to the list for at least eight years in a row. G Adventures' 2017 award was in part due to a program it developed on a small island in Belize over the previous few years. However, local authorities complained that students there had dropped out of

school and taken jobs in the tourism industry, most often to lead bicycle tours for G Adventures. Critics in Belize scolded Poon Tip: "As your company grows, fewer and fewer kids are going to

school." This was not Poon Tip's intent at all. This problem also conflicted with the company's desire to be a "great social enterprise." Poon Tip promised the students a job and the loan

of a bike to lead G Adventures tours if they stayed in school. It took some time for the students to believe this promise, but the local school attendance rate has gone from 35 percent to 90 percent.

Poon np takes equally innovative approaches to motivation when he is dealing with employees at corporate headquarters. The company's core values are freedom,

happiness, and community, which are put into practice by seeking employees who share the company's desire to do good in the world while also assisting people with their adventure

travel visions. "Tourism could be the greatest form of wealth distribution that the world has ever seen," says Poon np. In this chapter, we focus on how to apply motivation concepts. We review a number of reward pro-

grams and consider whether rewards are overrated. We also discuss how to create more motivating jobs and worl<places, both of which have been shown to be alternatives to rewards in motivating individuals.

• Ever wonder why employees do some strange things?

\ I I

:'; ,': ,V, , '

TIIE BIG IDEA • When might job redesign be most appropriate?

• Do employers really like flexible arrangements?

• Would you find telecommuting motivating? • How do employees become more involved in the workplace?

Organizations can use piece- rate "vages, 1nerit- hased pay, bonuses, profiL sharing, and stock options

Lo moli\'ale employees. Ho"vever, making jobs rnore moli\'aling is more effective.

163

164 Part 2 Striving for Performance

From Theory to Practice: The Role of Money Money can be an exlremely powerful motivator. For most individuals, though, pay is not the only motivator. It is a central means of motivation, but what you are actually doing for the money matters, too. A 2017 study found that 40 percent of Canadian employees would take a pay cut to work for an employer who would give them more professional development opportunities. About a quarter said they would take a 5 percent cut, and 17 percent said lhey would take a pay cut of 10 percent or more.2 The process of moti- vating employees is complex, and people feel strongly about the implications of changes to their extrinsic or intrinsic benefi ts.

The motivation theories we have presented only give us vague ideas of how money relates lo individual molivation. For instance, Theory X suggests that individuals need to be exlrinsically motivated. Money is certainly one such exlrinsic molivator. Accord- ing to Maslow's hierarchy of needs, ind ividuals' basic needs must be met, including food, shelter, and safety. Generally, money can be used to satisfy those needs. Herzberg's motivalion- hygiene theory, on the other hand, suggests tha t money ( and other extrinsic motivalors) are necessary bul not sufficienl conditions for individuals to be motivated. Process theories are relalively silent about lhe role of money specifically, indicaling more how rewards molivate, withoul specifying particular types of rewards. Expectancy theory does note that ind ividuals need to value lhe reward, or it will not be very moti- vational. In this chapter, we apply motivation concepts to practices.

Creating Effective Reward Systems G Adventures' headquarters is an office workplace that is fun,3 because fun is something

founder Bruce Poon lip wants for his employees. The company provides foosball tables, a ping- pong table, and popcorn machines, among other perks. Meeting rooms are creatively decorated.

On Friday afternoons there is beer, wine, and cider. There is a 2000-square-foot rooftop patio

where employees can go to meet, relax, think, or work. All of these benefits are meant to help employees be creative in their work. Poon lip believes employees are much more productive if

they are not feeling pressured all of the time.

One of the really nice perks of working at G Adventures is the opportunity to travel for free (or nearly so). After being employed there for a year, employees can choose annually one of

the tours offered by the company. The company will pay up to $3000 for trips up to 17 days,

and $750 for flights. All of these actions signal to employees that they are valued as important contributors to the company's success. What else can a company do to make sure its employees

feel valued'

As we saw in Chapter 3, pay is not a primary factor driving job satisfaction. However, il does moliva te people, and companies often undereslimate the importance of pay in keeping top talent One s tudy fou nd lhal although only 45 percent of employers thought that pay was a key factor in losing top talenl, 71 percent of top performers called it a top reason.4

Given that pay is so important, will the organization lead, match, or lag the market in pay1 How will individual contributions be recognized? In this seclion, we consider (1) what to pay employees (which is decided by establishing a pay structure) and (2) how to pay individual employees (for example, through variable-pay programs).

What to Pay: Establishing a Pay Structure There are many ways to pay employees. The process of initially selling pay levels entai ls balancing intenial equity- the worth of the job to the organization ( usua lly established through a technical process called job evaluation )- and external equity- the compelitive- ness of an organization's pay relative to pay in its industry ( usually established through

Chapter 5 Motivation in Action 1 65

pay suiveys). Obviously, the best pay system reflects what the job is worth in ternally while also staying competitive relative to the labour market. The Ethical Di/em.ma on page 193 discusses competitive compensation for top-level executives.

Some organizations prefer to pay above the market, whi le some may lag the market because they cannot afford to pay market rates, or they are willing lo bear the costs of paying below market (namely, higher turnover as people are lured to bener-paying jobs). Some companies that have rea lized impressive gains in income and profit mar- gins have done so in part by holding down employee wages, such as Walt Disney and McDonald's.5

Pay more, and you may gel beuer-qual ified, more highly motiva ted employees who will stay with the organization longer. A study covering 126 large organizations found employees who believed that they were receiving a competitive pay level had higher morale and were more productive, and customers were more satisfied as well .6 But pay is often the highest s ingle operating cost for an organization, which means paying too much can make the organization's products or seivices too expensive. It's a strategic decision an organization must make, with clear trade-offs.

In the case ofWalmart, it appears that its strategic decision to keep wages low has not worked. Sales at Canadian s tores open for more than a year, an important barometer of reta il health known as same-store sales, fell 1.3 percent and customer traffic al those stores declined 1.8 percent in 2013.7 In 2015, Walman Canada increased its base wage to $9/hour, and ra ised the base wage again to $10/hour in 2016.8•9 Sales growth over that period increased, although no t as quickly as that of one ofWalmart's larger com- petitors, Costco. The average employee at Costco makes approximately two-and-a-half times what the average employee at Wal mart earns. Costco's strategy is that they will get more if they pay more- higher wages have resu lted in increased employee productivity and reduced turnover. Perhaps the recent Wal mart decision to increase employee wages will help bring it closer in line with Costco's growth.

How to Pay: Rewarding Individuals through Variable-Pay Programs "Why should I put any extra effort into th is job?" asks a frustrated grade 4 teacher. "I can excel or I can do the bare minimum. ll makes no difference. I get paid the same. Why do anyth ing above the minimum to get by?" Similar comments have been voiced by schoolteachers (and some other unionized employees) for decades because pay increases are tied lo seniority. The effect of pay increases is discussed in Case Incident- Pay Raises Every Day on pages 194-195.

A number of organizations are moving away from paying people based solely on credentials or length of seivice. Piece-rate, merit-based, bonuses, and employee stock ownership plans are all forms of a variable-pay program ( also known as pay for per- formance) that bases a portion of an employee's pay on some individual, group, and/ or organizational measure of performance. Earnings therefore fluctuate up and down with the measure of performance, ID as Jason Easton, director of Strategy and Business Transformation at Toronto-based GM Canada, explains: "In any given year the variable pay can actually be zero, below the ta rget, or above the target, depending on how the company has performed."11 When GM Canada gave performance-based bonuses to its salaried employees, it generated discontent among union employees who had no such provision in their collective agreement. 12 The variab le portion may be all or part of the paycheque, and it may be paid annually or upon allainment of benchmarks. It can also be either optional for the employee or an accepted condition of employment. 13

Variable-pay plans have long been used to compensate salespeople and executives, but the scope of variable-pay jobs has broadened.

Unfortuna tely, not all employees see a strong connection between pay and perfor- mance. The resu lts of pay-for-performance plans are mixed; the context and receptivity of the individual lo the plans play a large role. For instance, a study by researchers al the

O Demonstrate how the different types of variable-pay programs can increase employee motivation.

variable-pay program A pay plan that bases a portico of an employee's pay on some individual and/0< organi- zatiooal measure of performance.

166 Part 2 Striving for Performance

piece-rate pay plan An in<ividual- based incentive plan in which employ- ees are paid a fixed sum for each unit of productioo completed.

Universi te du Quebec a Montreal indicated that variable-pay plans increase job satisfac- tion only if employee effort is rewarded as well as performance.14 On the other hand, one study of 415 companies in South Korea suggested that group-based pay-for-performance plans may have a slrong positive effect on organizational performance. 15 Finally, secrecy pays a role in the motivational success of variable-pay plans. Although in some govern- ment and not-for-profit agencies pay amounts are e ither specifically or generally made public, many organizations encourage or require pay secrecy. 16 Is this good or bad? Unfortunately, it's bad: Pay secrecy has a detrimental effect on job performance. Even worse, it adversely affects high performers more than other employees. Il very likely increases employees' perception that pay is subjective, which can be demotivating. While individual pay amounts may not need to be broadcast to restore the balance, if general pay ca tegories are made public and employees feel variable pay is linked objectively to their performance, the motivational effects of variable pay can be retained.17

The fluctuation in variable pay is what makes these programs atuactive to manage- ment. It turns part of an organization's frxed labour costs into a variable cost, thus reducing expenses when performance declines. When the economy fallers, as in 2008, companies with variable pay are able to reduce their labour costs much faster than others. 18 When pay is tied lo performance, the employee's earnings reflect their conuibulions rather than become a form of entitlement. Low performers find, over lime, that their pay stagnates, while high performers enjoy pay increases commensurate with their contributions.

Let's examine the different types of variable-pay programs in more detail.

Individual-Based Incentives There are three major forms of individual-based variable-pay programs: piece-rate wages, merit-based pay, and bonuses.

Piece-Rate Wages The piece-ra te pay plan has long been popular as a means for compensating production employees with a fixed sum for each unit of production completed, but il can be used in any organizational setting where the outputs are similar enough to be evaluated by quantity. A pure piece-rate plan provides no base salary and pays the employee only for what he or she produces.

Ballpark workers selling peanuts and soft drinks frequently are paid piece-rate. If they sell 40 bags of peanuts at $1 each for their earnings, their take is $40. The more peanuts they sell, the more they earn. Allernatively, piece-rate plans are sometimes disuibuted lo sales teams, so a ballpark worker makes money on a portion of the total number of bags of peanuts sold by the group during a game.

Piece-ra te plans are known to produce higher productivi ty and wages, so they can be attractive to organizations and motivating for employees. 19 In fact, one major Chinese university increased its piece-rate pay for articles by professors and realized 50 percent increased research productivity.20 In the workplace, employees most likely to be moti- vated by piece-rate plans are managers and more tenured employees. Low-performing employees are generally not interested in piece-rate pay for obvious reasons- they will nol get paid much '

The chief concern of both individual and learn piece-rate employees is financial risk. A recent experiment in Germany found that 68 percent of risk-averse individuals prefer an individual piece-rate system, and that lower performers prefer team piece-ra te pay. Why? The authors suggested risk-averse and high-performing individuals would rather take their chances on pay based on what they can control (their own work) because they are concerned others will slack off in a team setling.21 This is a valid concern, as we will discuss in the next chapter. Organizations, on the other hand, should verify that their piece-rate plans are indeed motivating lo individuals. European research has suggested that when the pace of work is determined by unconlrollable outside factors such as customer requests, rather than internal factors such as co-workers, targets, and machines, a piece-rate plan is not motivating.22 Either way, managers must be mindful

Chapter 5 Motivation in Action 1 67

of the motivation for workers to decrease quality in order to increase their speed of output. They should also be aware that by rewarding volume, piece-rate plans increase the probability of workplace injuries.23

Thus, while piece-rate plans can be a powerful motiva tor in many organizational sellings, an obvious limitation is that they are not feas ible for many jobs. An emer- gency room (ER) doctor and nurse can earn significant salaries regard less of their patients' outcomes. Would it be beuer to pay them only if their patients fully recover? It seems unlikely that most would accept such a dea l, and it might cause unanticipated consequences as well ( such as ERs turning away patients with terminal diseases or life- threatening injuries). So, although incentives are motivating and relevant for some jobs, it is unrealis tic to think they work universally.

Merit-Based Pay A merit-based pay plan pays for individual performance based on performance appraisal ratings. A main advantage is that high performers can get big- ger raises. If designed correctly, meri t-based pay plans let individuals perceive a strong relationship between their performance and their rewards.24

Most large organizations have merit-based pay plans, especially for salaried employ- ees. Merit pay is slowly taking hold in the public sector. For example, most Canadian government employees are unionized, and the unions that represent them have usually demanded that pay ra ises be based solely on seniority.

A move away from merit pay is coming from some organizations that don't feel it separates high and low performers enough. "There's a very strong belief and there's evidence and academic research that shows that variable pay does create focus among employees,• said Ken Abosch, a compensation manager at human-resource consulting firm Aon Hewitt. But when the annual review and ra ise are months away, the motiva- tion of this reward for high performers diminishes. Even companies that have reta ined merit pay are rethinking the allocation. 25

Although you might think a person's average level of performance is the key factor in merit pay decisions, recent research indicates that the projected level of future perfor- mance also plays a role. One s tudy found that National Basketball A~sociation (NBA)

Chinese Internet firm Tencent Holdings rewards employees with attractive incentives that include cash

bonuses for lower-ranking employees. The young men shown here were among 5000 employees who received a special bonus tucked in red envelopes and personally handed out by Tencent's CEO and co-founder Pony Ma.

merit-based pay plan An individual-based incentive plan based on performance appraisal ratings.

168 Part 2 Striving for Performance

bonus An individual-based incen- tive plan !hat rewards employees !Of recent perfO£mance rather lhan historical performance.

players whose performance was on an upward trend were paid more than their average performance would have predicted. Managers of all organizations may unknowingly be basing meri t pay decisions on how they expect employees will perform, which may resu lt in overly optimistic ( or pessimistic) pay decisions.26

Despite their intu itive appeal, merit-based pay plans have several limitations. One is that they are typically based on an annual performance appraisal and thus are only as va lid as the performance ratings, which are often subjective. This brings up issues of discrimination. Research indicates that African American employees receive lower performance ratings than white employees, women's ratings are higher than men's, and there are demographic differences in the distribution of salary increases, even with all other factors equal.27 Another limitation is that the pay-raise pool of avai lab le funds fluctuates based on economic or other conditions that have little to do with an indi- vidual employee's performance. For instance, a colleague a t a top university who per- formed very well in teaching and research was given a pay ra ise of $300. Why? Because the budget for pay raises was very small. Yet that amount is hardly pay for performance. Lastly, unions typically resist merit-based pay plans. Relatively few teachers are covered by merit pay for th is reason. Instead, seniority-based pay, which gives all employees the same raises, predominates.

The concept and intention of merit pay- that employees are paid for performance- is sound. For employee motivation purposes, however, merit pay should be only one part of a performance recognition program.

Bonuses An annual bonus is a significant component of total compensation for many jobs.28 But bonus plans increasingly include lower-ranking employees; many companies now routinely reward production employees with bonuses in the thousands of dollars when profits improve. The incentive effects should be higher because, rather than pay- ing for previous performance now rolled into base pay, bonuses reward only recent performance (merit pay is cumulative, but the increases are generally much smaller than bonus amounts). Moreover, when limes are bad, firms can cut bonuses to reduce compensation costs.

Bonuses are not free from organizational politics (which we discuss in Chapter 8), and they can sometimes result in employees engaging in negative behaviours to ensure they will receive bonuses. Focus on Ethics raises the possibility that part of the US finan- cial cris is that began in September 2008 was due to the way bonuses were awarded to execu lives.

FOCUS ~~HICS Huge Bonuses, Disastrous Results for the United States

Did bonuses help fuel a financial meltdown? During a two-week period in September 2008, the American economy almost looked to be in free fall.29 The US government bought up the assets of mortgage insurers Freddie Mac and Fannie Mae. Global financial services firm Merrill Lynch, founded in 1914, agreed to be bought by Bank of America for very little money. Global financial services firm Lehman Brothers, founded in 1850, went into bankruptcy. Morgan Stanley was in merger discussions. Major American insurance corporation AIG received an $85-billion bailout from the US government. Independent investment banks Goldman Sachs, founded in 1869, and Morgan Stanley, founded in 1935, announced that they would become bank holding companies. Investment banks issue and sell securities and provide advice on mergers and acquisitions. By becoming bank holding companies, the two companies became subjected to greater regulation than they had been previously.

Chapter 5 Motivation in Action 1 69

There is no simple answer to why all of these corporations faced collapse or near col- lapse all at once, but the role that bonuses played in the financial meltdown has been raised. The trigger for the economic crisis was the collapse of many subprime mortgages during 2007 and 2008. In the preceding years, numerous Americans had been given mortgages for homes, even though they had no down payments and sometimes did not even have jobs. The loan payments were low at the beginning, but eventually many of those given subprime mortgages started to default on their loans.

Why would someone give out a loan to an individual who did not have a job or did not provide clear evidence of earnings? The banking industry rewarded mortgage brokers for making loans, giving out bonus payments based on the size of loans. The loans were then bundled together to make new financial instruments. These resulted in commissions and bonuses for those packaging the instruments. Several Wall Street CEOs who lost their jobs because of the fallout from subprime loans earned "tens of millions in bonuses during the heady days of 2005 and 2006." •.... . .... . .... . .... . .... . .... . .... . .... . ........•

The collapse of so many financial institutions at once suggests that rewarding indi- viduals based on financia l performance can cause problems.

This example also highlights the downside of bonuses: Employees' pay is more vulnerable to cuts. This is problematic when bonuses are a large percentage of total pay or when employees take bonuses for granted. "People have begun to live as if bonuses were not bonuses at all but part of their expected annual income; said Jay Lorsch, a Harvard Business School professor.

The way bonuses and rewards are categorized also affects people's motivation. Although it is a bit manipulative, splitting rewards and bonuses into categories- even if the categories are meaningless- may increase motivation.30 Why? Because people are more likely to feel they missed out on a reward if they don't receive one from each category, and then work harder to earn rewards from more categories.

Organizational-Based Incentives There are two major forms of organizational-based pay-for-performance programs: profit-sharing and stock option plans, which include employee s tock ownership plans.

Profit-Sharing Plans A profit-sharing plan distributes compensation based on some established formula designed around a company's profitabil ity. Compensation can be d irect cash outlays or, particularly for top managers, allocations of stock options. When you read about executives like Mark Zuckerberg, who accepts an absurdly modest $1 salary, remember that many executives are granted generous stock options. In fact, Zuckerberg has made as much as $2.3 b illion after cashing out some of his stock options.31 Although senior executives are most likely to be rewarded through profit-sharing plans, employees at any level can be recip ients. Burlington, Ontario-based O.C. Tanner Canada pays all of its employees bonuses twice a year based on profits.

Studies genera lly support the idea that organizations with profit-sharing p lans have higher levels of profitabil ity than those without them.32 These plans have also been linked to h igher levels of employee commitment, especially in small organizations.33 Profit-sharing at the organizational level appears to have positive impacts on employee attitudes; employees report a greater feeling of psychological ownership.34 Recent research in Canada indicates that profit-sharing plans motivate individuals to h igher job performance when they are used in combination with other pay-for-performance p lans.35 Obviously, profit-sharing does not work when there is no reported profit per se, such as in nonprofit organizations, or often in the public sector. However, profit-sharing may make sense for many organizations, large or small.

profit-sharing plan An organization- wide incenti11e plan in which lhe employer shares profits wilh employees based on a predetermined formula.

170 Part 2 Striving for Performance

f) Show how flexible benefits can be used to motivate.

employee stock ownership plan {ESOP) Aoompany-established benefit plan in which employees acquire stock as part of their benefits.

Employee Stock Ownership Plans An employee s tock ownership plan (ESOP) is a company-established benefit plan in which employees acquire stock as part of their benefits. Research on ESOPs indicates they increase employee satisfaction and innova- tion.36 ESOPs have the potential lo increase job satisfaction only when employees psy- chologically experience ownership.37 Even so, ESOPs may not inspire lower absenteeism or greater motivation, 38 perhaps because the employee's actua l monetary benefit comes with cashing in the stock at a later date. Thus, employees need to be kept regularly informed of the s tatus of the business and have the opportunity to positively influence il in order to feel motivated toward higher personal performance.39

Canadian companies lag far behind the Uni ted Stales in the use of ESOPs because Canada's tax environment is Jess conducive lo such plans. Nevertheless, a s ignificant number of employees at Winnipeg-based FWS Group of Companies, an integra ted design-build construction services company founded 65 years ago, participate in the company's ESOP plan. Brent Clegg, CEO ofFWS, explains the importance of this partici- pation: "We strongly believe that broad employee ownership through an ESOP encour- ages a high performance culture which leads to operational excellence and the creation of outstanding value for all of our stakeholders."40 Calgary-based West)et, Toronto-based I Love Rewards, Edmonton-based Cybenech Automation, and Winnipeg-based Great- West Life are other examples of companies that have employee stock ownership plans.

ESOPs for top management can reduce unethical behaviour. For instance, CEOs are less likely to manipulate firm earnings reports to make themselves look good in the short run when they have an ownership share.41 Of course, not all companies want ESOPs, and they won't work in all situations, but they can be an important part of an organization's motivational strategy.

[[ • )] RESEARCH FINDINGS: Variab le-Pay Programs Do variable-pay programs work? Generally yes, but that does not mean everyone is equally motivated by them.42 Many organizations have more

than one variable-pay element in operation, such as an ESOP and bonuses, so manag- ers should evaluate the effectiveness of the overall plan in terms of the employee moti- vation gained from each element separately and from all elements together. Managers should monitor their employees' performance-reward expectancy, s ince a combina- tion of elements that makes employees feel that their greater performance will yield them greater rewards will be the most motivating.43

Flexible Benefits: Developing a Benefits Package Now that we have discussed what and how to pay employees, let's discuss two other motivating factors organizations must decide: (I) what benefits and choices lo offer (such as flexible benefits), and (2) how to construct employee recognition programs. Like pay, benefits are both a provision and a motivator. Whereas organizations of yes- teryear issued a standard package to every employee, contemporary leaders understand that each employee values benefits differently. A flexible program turns the benefits package into a motivational tool.

Alain Boudreau and Yasmin Murphy have very different needs in terms of employee benefits. Alain is married and has three young children and a wife who is at home full lime. His colleague Yasmin, too, is married, but her husband has a high-paying job with the federal government, and they have no children. Ala in is concerned about having a good dental plan and enough life insurance lo support his family in case it's needed. In contrast, Yasmin's husband already has her dental needs covered on his plan, and life insurance is a low priority for both Yasmin and her husband. Yasmin is more interested in extra vacation lime and long-term financial benefits such as a tax-deferred savings plan.

Chapter 5 Motivation in Action 1 71

A standardized benefits package for all employees at an organization would be unlikely to satisfactorily meet the needs of both Alain and Yasmin. The organization they work for could cover both sets of needs by offering flexible benefits.

Consistent with expectancy theory's thesis that organizational rewards should be linked to each employee's personal goals, flexible benefits individualize rewards by allowing each employee to choose the compensation package that best sa tisfies his or her current needs. Flexible benefits can be uniquely tai lored to accommodate differences in employee needs based on age, marital s tatus, partner's benefit status, and number and age of dependants.

Benefits in general can be a motivator for a person to go to work, and for a person to choose one organization over another. But are flexible benefits more motivating than traditional plans? It's difficult to tel l. Some organizations that have moved to flexible plans report increased employee retention, job satisfaction, and productivity. However, flexible benefits may not substitute for higher salaries when it comes to motivation.44

Furthermore, as more organizations worldwide adopt flexible benefits, the individual motivation they produce will likely decrease ( the plans will be seen as a standard work provision). The downsides of flexib le benefit plans may be obvious: They may be more costly to administrate, and identifying the motivational impact of different provisions is challenging. A recent survey of 211 Canadian organizations found that 60 percent offer flexible benefits, up from 41 percent in 2005.45 They are becoming the norm in other countries, too. Case lncide11t-,"1otivatio11 for Leisure on page 194 demonstrates the trade-off between different benefits.

Intrinsic Rewards: Employee Recognition Programs We have d iscussed motivating employees through job des ign and by the extrinsic rewards of pay and benefits. On an organizational level, are those the only ways to motivate employees? Not at a]J I We would be remiss if we overlooked intrinsic rewards organizations can provide.

Laura makes only $11.60 per hour working at her fast-food job, and the job is not very challenging or interesting. Yet Laura talks enthusiastically about the job, her boss, and the company that employs her. "What I like is the fact that Guy [her supervisor] appreciates the effort I make. He compliments me regularly in front of the other people on my shift, and I've been chosen Employee of the Month twice in the past six months. Did you see my picture on that plaque on the wall?"

Organizations are increasingly realizing what Laura knows: Recognition programs and other ways of increasing an employee's intrinsic motivation work. An employee recognition program is a plan to encourage specific behaviours by formally appreciat- ing specific employee contributions. Employee recognition programs range from a spontaneous and private •thank you• to widely publicized formal programs in which the procedures for attaining recognition are clearly identified.

A 2016 study by the Conference Board of Canada found that recognition programs are common in Canadian firms.46 Recognition takes the form of both monetary and non-monetary rewards. The most prevalent recognition reward is for long service at an organization. Unfortunately, this is not a motivator for millennials, who on average work for five different employers in a 10-year period. The survey also found that only a th ird of organizations consider the different generations in the workplace when des igning recognition programs. IL found only 37 percent of organizations take today's multigenerational workforce into account when designing their rewards and recognition programs.

Brian Scudamore, CEO of Vancouver-based 1-800-GOT-JUNK?, understands the importance of showing employees that they are appreciated. "I believe that the best way to engage someone is with heartfelt thanks. We have created a culture of peer rec- ognition, and ' thank yous' have become contagious. Whether it's a card, kudos at the

8 Identify the motivational benefits of intrinsic rewards.

flexible benefits A benefits plan that allows each employee to put together a benefi1s package indillidu- ally tailored lo his or her own needs and sijuation.

172 Part 2 Striving for Performance

huddle, or basic one-on-one thanks, grati tude goes a Jong way toward building team engagement, loyalty and, of course, happiness."47 Scudamore says that actions like these keep the company growing, and employees having fun.

Some Canadian firms recognize individual or group achievements with cash or merchandise. For example, Toronto-based software developer RL Solutions developed a formal program for employees to recognize co-workers who go above and beyond in working with clients or in other aspects of their work. Those recognized by thei r co- workers receive cash and/or other rewards. Employees are also recognized with bonuses when they refer good job candidates to the company.48

Other ways of recognizing performance include sending employees personal thank- you notes or emails for good performance, pulling employees on prestigious commit- tees, sending employees for training, and giving an employee an assistant for a day to help clear backlogs. Recognition and praise, however, need to be meaningful.49

RESEARCH FINDINGS: Incentives Research suggests financia l incentives may be more motivating in the short term, but in the Jong run nonfinancial incentives work best.50 Surpris ingly,

there is not a lol of research on the motivational outcomes or global usage of employee recognition programs. However, recent studies indicate that employee recognition programs are associated with self-esteem, self-efficacy, and job satisfaction, 51 and the broader outcomes from intrinsic motivation are well documented.

With or without financial rewards, recogni tion programs can be highly motivating to employees. Despite the increased populari ty of such programs, though, critics argue they are highly susceptible lo political manipulation by management. When applied to jobs for which performance factors are relatively objective, such as sales, recognition programs are likely lo be perceived by employees as fair. In most jobs, however, perfor- mance criteria are not self-evident, which allows managers lo manipulate the system and recognize their favourites. Abuse can undermine the value of recognition programs and demoral ize employees. Therefore, where formal recognition programs are used, care must be taken to ensure fairness. Where they are nol, it is important to motivate employees by consistently recognizing their performance efforts.

Beware the Signals That Are Sent by Rewards Perhaps more often than we would like, organizations engage in what has been called "the folly of rewarding A, \vh ile hoping for 8";52 in other words, managers may hope employees will engage in one type of behaviour, bul they reward another. Expectancy theory suggests that individuals will generally perform in ways that ra ise the probabil ity of receiving the rewards offered. Exhibit 5-1 provides exam- ples of common management reward foll ies. By signalling

Ever ,,·ondcr vvhy emplo~·ecs

do some strange things'?

what gets rewarded, organizations implicitly determine whether employees engage in organizational citizenship behaviour

Research suggests that there are three major obstacles to ending these follies:53

1. Individuals are unable w breah out of old ways of thin/ring about reward and recognition practices. Management often emphasizes quantifiable behaviours to the exclusion of nonquantifiable behaviours, management is sometimes reluctant to change the existing performance system, and employees some- times have an entitlement mentality (they don't want change because they are comfortable with the current system for rewards) .

EXHIBIT 5-1 Management Reward Follies

We hope for ...

Teamwork and collaboration

Innovative thinking and risk-taking

Development of people skills

Employee involvement and empowerment

High achievement

Long-term growth; environmental responsibility

Commitment to total quality

Candour; surfacing bad news early

Chapter 5 Motivation in Action 1 73

But we reward ...

The best team members

Proven methods and not making mistakes

Technical achievements and accomplishments

Tight control over operations and resources

Another year's effort

Quarterly earnings

Shipping on schedule, even with defects

Reporting good news, whether it's true or not; agreeing with the manager, whether or not (s)he is right

Sourr:es: Constructed from S. Kerr, "On the Folly o f Rewarding A, While Hoping for B," Aca<femy of Management Executive 9, no. 1 (1995),

2 . Organizations often don't Jooli at the big pict11re of their performance system. Consequently, rewards are allocated at subunit levels, with the result that un its

often compete against each other.

3 . Both management and shareholders often foc11s on short-term res11/rs. They don't reward employees for longer-range planning.

Organizations would do well lo ensure that they do not send the wrong message when offering rewards. When organizations outline an organizational objective of "team performance," for example, but reward each employee according to individual

productivity, this does not send a message that teams are valued. When a retai ler tells commissioned employees that they are responsib le for monitoring and replacing stock, those employees will nevertheless concentrate on making sales. Employees motivated by the promise of rewards will do those things that earn them the rewards they value.

OB in the Street offers additional evidence that what is rewarded guides people's focus of activity.

OB IN THE STREET ~ Rewarding Gym Attendance While Wanting Weight Loss •

Will offering incentives for going to the gym prevent fi rst-year university students from

gaining weight? University students are notorious for gaining several ki lograms in their first year, as they adjust to living away from home and being more responsible for food choices while uying lo keep up with their stud ies.54 Researchers wondered if provid ing monetary incentives for students to go to the gym would help them keep off weight.

Students were assigned lo experimental or control groups. In the experimental group, s tudents were paid between $10 and $38.75 weekly if they met the goals researchers set for going to the fitness centre. Studen t activity was monitored through ID cards used to check in and check out of the centre.

The monetary incentives did make a difference in whether s tudents went to the fi tness centre weekly: 63 percent of those receiving incentives met the weekly goals on average, while only 13 percent of those in the control group did so. However, the

rate of quilting going to the fitness centre dropped off at about the same rate for both

(contin11ed)

17 4 Part 2 Striving for Performance

O Describe the job char· acteristics model and the way it motivates.

job design The way lhe elements in a job are organized.

job characteristics model (JCM) A model lhat proposes that any job can be described in terms of five core job dimensioos: skill vari- ely, !ask identity, task significance, autonomy, and feedback.

skill variety The degree to which the job requires a variety of different activities.

task identity The degree to which the job requires completion of a whole and identifiable piece of work.

task significance The degree to which lhe job has a substantial impact on the lives or work of olher people.

autonomy The degree to which the job provides substantial freedom, independence, and discretion lo lhe individUal in scheduling lhe work and delermining the procedures to be used in carrying it out.

feedback The degree to which car- rying out the work activities required by the job results in the individual oblaining direcl and clear informalioo about lhe effectiveness of his or her performance.

the control and incentive groups. While the control group gained a bit more weight than did the group receiving incentives for going to the fitness centre, the d ifference was not significant.

The resu lts indicate that the monetary rewards did in fact increase the likelihood that students would meet their weekly goals for going to the fitness centre. However, the students were not given rewards for maintain ing or losing weight over the same period. The researchers had assumed that a link existed between going to the fitness centre and weight fluctuations. The students might have been more successful at minding their weight had the researchers rewarded weight loss rather than going to lhe fitness centre . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . .. . .

As we have seen from this discussion, understanding what motivates individuals is ultimately key to organizational performance. Employees \vhose differences are recog- nized, who feel valued, and who have the opportunity to work in jobs tailored to their s trengths and interests will be motivated to perform at the highest levels. Employee participation also can increase employee productivity, commitment to work goals, motivation, and job satisfaction. However, we cannot overlook the powerful role of organizational rewards in influencing motivation. Pay, benefits, and intrinsic rewards must be carefully and thoughtfully designed in order to enhance employee motivation toward positive organizational outcomes.

Motivating by Job Redesign The way work is structured has a bigger impact on an individual's motivation than might first appear. Job design suggests that the way elements in a job are organized can influence employee effort, and the job characteristics model, discussed next, can serve as a framework to identify opportunities for changes to those elements

The Job Characteristics Model Developed by OB researchers J. Richard Hackman from Harvard University and Greg Oldham from the Universi ty of Ill inois, the job characteristics model (JCM) describes jobs in terms of five core job dimensions:55

• Skill varie ty. The degree to which the job requires a variety of different activi- ties so the employee can use specialized skills and talents.

• Task identity. The degree to which the job requires completion of a whole and identifiable piece of work.

• Task significance. The degree to which the job has an impact on the lives or work of other people.

• Autonomy. The degree to which the job provides the employee freedom, independence, and discretion in scheduling work each day and determining the procedures for carrying it out.

• Feedback. The degree to which carrying out work activi ties generates direct and clear information about the employee's own performance.

Jobs can be rated as high or low on these dimensions. Examples of jobs with high and low ra tings appear in Exhibit 5-2.

Exhibit 5-3 presents the job characteristics model (JCM). Note how the first three dimensions- skill variety, task identity, and task significance- combine to create mean- ingful work the employee will view as important, valuable, and worthwhi le. A recent study found that religious workers, social workers, counsellors, and medical profession- als rated their jobs as highly meaningful, while those who held jobs as food service and

Chapter 5 Motiva tion in Action 175

EXHIBIT 5-2 Examples of High and Low Job Characteristics

Skill Variety

High variety

Low variety

Task Ident ity

High identity

Low identity

Task Significance

High significance

Low significance

Autonomy

High autonomy

Low autonomy

Feedback

High feedback

Low feedback

The owner-operator of a garage who does electrical repair, rebuilds engines, does body work, and interacts with customers

A body shop worker who sprays paint eight hours a day

A cabinet maker who designs a piece of furniture, selects the wood, builds the object, and finishes it to perfection

A worker in a furniture factory who operates a lathe solely to make table legs

A nurse who cares for the sick in a hospital intensive care unit

A custodian who sweeps hospital floors

A salesperson who schedules his or her own work each day, and decides on the sales approach for each customer without supervision

A salesperson who is given a set of leads each day and is required to follow a standardized sales script w ith potential customers

A factory employee who assembles iPads and tests them to see whether they operate properly

A factory employee who assembles iPads and then routes them to a quality-control inspector for testing and adjustments

permission of Pearson Education, Inc. Upper Saddle River, NJ.

EXHIBIT 5-3 The Job Characteristics Model

Core job dimensions

Skill variety Task identity Task significance

Autonomy

Feedback

]1--~)lr

Critical psychological states

Experienced meaningfulness of the work

Experienced responsibi lity for outcomes of the work

Knowledge of t he actual results of the work activities

Employee growth- need strength

Personal and work outcomes

High internal work motivation

High-qual ity work performance

High satisfaction with the work

Low absenteeism and turnover

176 Part 2 Striving for Performance

hospitality workers rated them as being very low in meaningfulness. Fast-food cooks were at the bouom of the list of meaningfulness. 56

Jobs with high autonomy give employees a feeling of personal responsib ility for results; feedback will show them how effectively they are performing. The JCM proposes that individuals obtain internal rewards when they learn (knowledge of results) tha t they personally have performed well ( experienced responsib ility) on a task they care about (experienced meaningfulness).57 The more these three psychological stales are present, the greater will be employees' motivation, performance, and satisfaction, and the lower thei r absenteeism and likelihood of leaving. As Exhibit 5-3 indicates, indi- viduals with a high growth need are more likely lo experience the critical psychological s tates when their jobs are enriched- and respond to them more posi tively- than are their counterparts with a low growth need. Autonomy does not mean the same thing to every person, as Focus 011 Research shows.

FOCUS ~NESEARCH Autonomy and Productivity

• Can autonomy really make a difference? Research published by professors Marylene Gagne and Devasheesh Shave of Concordia's John Molson School of Business found that

every culture values autonomy, and that the perception of autonomy has a positive impact

on employees.58 "However, managers can't simply export North American methods of granting autonomy anywhere and expect them to work. Even in Canada, approaches to

giving workers more autonomy need to be constantly rethought as the country becomes more multicultural," says Gagne.

The researchers found that how autonomy is applied makes a difference in how it is

perceived. In some cultures, too much freedom in the workplace can be viewed as man- agement disorganization. However, if employees feel they have some control over their

activities, they generally show more commitment and productivity, particularly when the

work is complex or demands creativity. • ... .. .... .. .... .. .... .. .... . ..... . ..... . .•

RESEARCH FINDINGS: JCM Much evidence supports the JCM concept that the presence of these job characteristics gener-

ates h igher job satisfaction and organizational commit- ment through increased motivation.59 In general, research concurs with the theory behind the JCM, although studies have introduced potential modifiers. One study suggested that when employees were •other oriented" (concerned with the welfare of others al work) , the relationship between intrinsic job characteristics and job satisfaction

When might job redesign

be most appropriate'?

was weaker, 60 meaning that our job satisfaction comes less from these characteristics when we care about others. Another study proposed that the degree of psychological ownership we feel toward our work enhances our motivation, particularly if the feel- ings of ownership are shared among a work group. 61 Other research has explored the )CM in unique settings such as in virtual work situations, finding that if individuals work together onl ine but not in person, their experience of meaningfulness, responsi- bility, and knowledge of results can suffer. Thankfully, managers can mitigate these for employees by consciously developing personal relationships with them and increasing their sense of task significance, autonomy, and feedback. 62

Chapter 5 Motivation in Action 1 77

Motivating Potential Score We can combine the core dimensions of the )CM into a single predictive index, called the motivating potential score (MPS), which is calculated as follows:

Motivating [ Skill + . Task + . Task ] Potential = vanety 1denuty s1gn1ficance x Autonomy x Feedback Score (MPS) 3

To be high on motivating potential, jobs must be high on at least one of the three factors that lead lo experienced meaningfulness and high on both autonomy and feedback. If jobs score high on motivating potential, the model predicts motiva tion, performance, and satisfaction will improve, while absence and turnover will be reduced. But we can better calculate motivating potential by simply adding characteristics rather than using the formula. Think about your job. Do you have the opportunity to work on different tasks, or is your day routine? Are you able lo work independently, or do you constantly have a supervisor or co-worker looking over your shoulder? Your answers indicate your job's motivating potential.

The first part of the Experient.ial Exercise on page 192 provides an opportunity for you to apply the )CM to a job of your choice. You will also calcula te the job's MPS. In the second part of the Experiential Exercise, you can redesign the job to show how you might increase its motivating potential. From Concepts w Shills on pages 195- 196 pro- vides specific guidelines on the kinds of changes that can help increase the motivating potential of jobs.

Job Redesign in the Canadian Context: The Role of Unions Labour unions have been largely resistant to participating in discussions with manage- ment over job redesign issues. Redesigns often resu lt in loss of jobs, and labour unions try lo prevent job loss.63 Union head offices, however, can sometimes be al odds with their membership over the acceptance of job redesign. Some members value the oppor- tunity for skill development and more interesting work.

While managers may regard job redesign as more difficult under a collective agree- ment, the reality is that for change lo be effective in the workplace, management must gain employees' acceptance of the plan whether or not they are unionized.

How Can Jobs Be Redesigned? "Every day was the same thing,• Frank said. "Stand on that assembly line. Wail for an instrument panel lo be moved into p lace. Unlock the mechanism and drop the panel into the Jeep Liberty as il moved by on the line. Then I plugged in the harness- ing wires. I repeated that for eight hours a day. I don't care tha t they were paying me $24 an hour. I was going crazy. Finally, I just said this isn' t going lo be the way I'm going to spend the rest of my life. My brain was turning to JELL-0. So I quit. Now I work in a print shop and I make less than $15 an hour. But let me tell you, the work I do is really interesting. The job changes all the time, I'm continually learning new things, and the work really challenges me! I look forward every morning to going to work again."

The repetitive tasks in Frank's job at the Jeep plant provided liule variety, autonomy, or motivation. In contrast, his job in the print shop is challenging and stimulating. From an organizational perspective, the failure of Frank's first employer to redesign his job into a more satisfying one led to increased turnover. Redesigning jobs therefore has important practical implications- reduced turnover and increased job satisfaction among them. Let's look al some of the ways lo put )CM into practice to make jobs more motivating.

O Compare the main ways jobs can be redesigned.

motivating potential score {MPS) A predictive index suggesting the motivation potential in a job.

178 Part 2 Striving for Performance

job rotation The periodic shifting of an employee from one !ask to another.

relational job design Constructing jobs so employees see lhe positive difference they can make in the lives of olhers directly lhrough their WOfk.

Job Rotation If employees suffer from overroutinization, one alternative is job rotation, or the periodic shifting of an employee from one task to another with simi lar skill require- ments at the same organizational level (also called cross-training) . Manufacturers also use job rotation as needed to respond more flexibly to the volume of incoming orders. New managers are sometimes rotated through jobs, too, to help them get a picture of the whole organization.64 For these reasons, job ro tation can be applied in any selling where cross-training is feasible, from manufacturing floors to hospital wards. At Singapore Airlines, for instance, a ticket agent may temporarily take on the du ties of a baggage handler, both to be cross-trained and get exposure to different aspects of the organiza tion. Extensive job rotation is among the reasons Singapore Airl ines is rated one of the best airlines in the world.65 Al McDonald's, this approach is used as a way to make sure that the new employees learn all of the tasks associated with making, packaging, and serving hamburgers and other items.

International evidence from Italy, Britain, and Turkey shows that job rotation is associated with higher levels of organizational performance in manufacturing set- tings.66 ll reduces boredom, increases motivation, and helps employees understand how their work contributes to the organization. It may also increase safety and reduce repetitive-based work injuries, but this is currently a topic of much study and debate, with mixed find ings.67

Job rotation does have drawbacks. First, training costs increase when each rotation necessitates a round of tra ining. Second, moving a worker into a new position reduces overall productivity for that role. Third, job rotation creates disruptions when members of the work group have to adjust to new employees. Finally, a manager may have to spend more time answering questions and monitoring the work of the recently rotated employee.

Relational Job Design While redes igning jobs on the basis of job characteristics theory is likely to make work more intrinsically motivating, research is focusing on how to make jobs more pro-socially motivating to people. In other words, how can managers design work so employees are motivated to promote the well-being of the organization's beneficiaries ( customers, cl ients, patients, and employees). This view of relational job design shifts the spotlight from the employee to those whose lives are affected by the job that the employee performs.68 ll also motivates individuals toward increased job performance.69

One way to make jobs more pro-socially motiva ting is to bener connect employ- ees with the beneficiaries of their work by relating stories from customers who have found the company's products or services to be helpful. Medical device manufacturer Medtronic invites people to describe how its products have improved, or even saved, their lives and shares these stories with employees during annual meetings, providing the employees a powerful reminder of the impact of their work. For another example, researchers found that when university fundraisers briefly interacted with the undergrad- uates who would receive the scholarsh ip money they ra ised, they persisted 42 percent longer than and raised nearly tw ice as much money as fundraisers who did not interact with potential recipients.70 The positive impact was apparent even when fundraisers met with just a single scholarship recip ient.

Personal contact with beneficiaries may not always be necessary. One study found that radiologists who saw photographs of patienL~ whose scans they were examining made more accurate diagnoses of their medical problems. Why? Seeing the photos made it more personal, which elicited feelings of empathy in the radiologists.71

Why do these connections have such positive consequences? Meeting beneficia- ries first-hand- or even just seeing pictures of them- allows employees to see that their actions affect a rea l person and that their jobs have tangible consequences. ll

Chapter 5 Motivation in Action 179

Research suggests that ha~ the organizations in Canada actively encourage employee volunteering. As a resutt, fully one-quarter of all the volunteer work in the country is done by employee volunteers. Here we see employees from Lowe's and Bank of Montreal working together to build social housing for people

living in poverty.

makes customers or cl ients more memorable and emotionally vivid, which leads employees to consider lhe effects of the ir work actions more. Finally, connections allow employees to easily take the perspective of beneficiaries, which fosters h igher levels of commitment.

You might be wondering whether connecting employees wilh the beneficiaries of their work is already covered by the idea of task significance in lhe JCM. However, some differences make beneficiary contact unique. For one, many jobs might be perceived to be high in significance, yet employees in those jobs never meet the individuals affected by their work. Second, beneficiary contact seems to have a distinct relationship with prosocial behaviours such as helping others. For example, one study found that life- guards who read stories abou t how their actions benefited swimmers were rated as more helpful by their bosses; this was nol the case for lifeguards who read stories about the personal benefits of their work for themselves.72 The upshot7 There are many ways you can design jobs to be more motivating, and your choice should depend on the outcomes you would like to achieve.

Relational job design, \vilh its focus on prosocial motivation, is an especially salient top ic for organizations wilh corporate social responsibility (CSR) initiatives. As we discussed in earlier chapters, CSR efforts often include invitations for employees lo volunteer their time and effort, sometimes using the skills lhey gained on the job (like Home Depot employees when they help rebuild homes) but often nol (such as when bank employees help rebuild homes wilh groups like Habitat for Humanity). In both cases, the employees may be able to interact wilh lhe beneficiaries of their efforts, and research indicates that corporate-sponsored volunteer programs enhanced in the JCM dimensions of meaningfulness and task significance motivate employees to volunteer.73

But while this motivation for prosocial behaviour is noteworthy, it is not the same as relational job design: For one, the CSR efforts are through volunteering ( not on the job); and for another, lhe work lhey are providing is not usually the same work they do at their jobs (Home Depot workers do not build homes on lhe job). However, relational job design holds intriguing possibil ities for CSR initiatives.

180 Part 2 Striving for Performance

e Explain how specific alternative work arrangements can motivate employees.

flextime Flexible wor1< hours.

Alternative Work Arrangements As you surely know, there are many approaches toward motivating people, and we have discussed some of them. Another approach lo motivation is to consider alternative work arrangements such as flextime, job sharing, or tele- commuting. These are likely lo be especially important for a diverse workforce of dual-earner couples, single parents, and employees caring for a sick or aging relative.

Do employ·ers really like

flexible arrangement<;'?

Flextime Flextime is short for "flexible work time." Flextime employees must work a specific number of hours a week, but they may vary the hours of work within certain limits. As shown in Exhibit 5-4, each day consists of a common core, usually six hours, with a flexibility band surrounding it The core may be 9 a.m. lo 3 p.m., with the office actu- ally opening at 6 a.m. and closing at 6 p.m. Employees must be al their jobs during the common core period, but they may accumulate their other two hours before and/ or after the core lime. Some flextime programs allow employees lo accumulate extra hours and turn them into days off.

EXHIBIT 5-4 Examples of Flext ime Schedules

Percent Time:

Core Hours:

Work Start Time:

Work End Time:

Percent Time:

Work Hours:

Work Start Time:

Work End Time:

Percent Time:

Work Hours:

Work Start Time:

Work End Time:

Percent Time:

Work Hours:

Work Start Time:

Work End Time:

Schedule 1

100% = 40 hours per week

9:00 a.m.-5:00 p.m., Monday through Friday (1 hour lunch)

Between 8:00 a.m. and 9:00 a.m.

Between 5:00 p.m. and 6:00 p.m.

Schedule 2

100% = 40 hours per week

8:00 a.m.-6:30 p.m., Monday through Thursday (1/ 2 hour lunch)

Friday off

8:00 a.m.

6:30 p.m.

Schedule3

90o/o = 36 hours per week

8:30 a.m.-5:00 p.m., Monday through Thursday (1/2 hour lunch)

8:00 a.m.- Noon Friday (no lunch)

8:30 a.m. (Monday-Thursday); 8:00 a.m. (Friday)

5:00 p.m. (Monday-Thursday); Noon (Friday)

Schedule 4

80% = 32 hours per week

8:00 a.m.-6:00 p.m., Monday through Wednesday (1/ 2 hour lunch)

8:00 a.m.- 11 :30 a.m. Thursday (no lunch)

Friday off

Between 8:00 a.m. and 9:00 a.m.

Between 5:00 p.m. and 6:00 p.m.

Chapter 5 Motivation in Action 18 1

Canadian employees do no t have much access to flextime, however. According to the results of a survey of 25 000 Canadians employed full time conducted by professor Linda Duxbury of the Sprott School of Business, Carleton University, only 15 percent of employees said they had access lo flextime schedules. Employees did report some flexibility in determining some of their work hours, however, with 69 percent indicat- ing high or moderate flexibility for work hours and Jocation.74 According lo a recent survey, a majority ( 60 percent) of US organizations offer some form of flextime.75 In Germany, 73 percent of businesses offer flextime, and such practices are becoming more widespread in Japan as well .76 In Germany, Belgium, the Netherlands, and France, by law, employers are not allowed lo refuse an employee's request for either a part-time or a flexible work schedule as long as the request is reasonable, such as to care for an infant child. 77

Benefits of flextime include reduced absenteeism, increased productivity, reduced overtime expenses, reduced hosti lity toward management, reduced traffic congestion, 78

elimination of tardiness, and increased autonomy and responsibility for employees- any of which may increase employee job satisfaction.79 But what is flextime's actual record?

Most of the evidence stacks up in favour of flextime. Perhaps most important from the organization's perspective, flextime increases profitabi lity. Interestingly, though, this effect seems lo occur only when flextime is promoted as a work- life balance strategy (not when il is for the organization's gain).80 Flextime also tends to reduce absenteeism and frequently improves employee productivity and satisfaction, 81 probably for several reasons. Employees can schedule their work hours to align with personal demands, reducing tardiness and absences, and they can work when they are most productive. Flextime can also help employees balance work and family li fe.

A study by University of Toronto researchers found that flextime can lead to longer hours of work overall and more multi-tasking. These effects in turn lead lo greater work- life conflict and s tress.82 So the management of flextime is an important issue for employees. Flextime's other major drawback is that it's not applicable to every job or every employee. It works well for clerical tasks where an employee's interaction with people outside the department is limited. ll's not a viable option for recep- tionists, salespeople in retail stores, or anyone whose service job requires being al a workstation al predetermined limes. ll a lso appears that people who have a strong desire to separate their work and fam ily lives are Jess apl to want flextime, so it's no t a motivator for everyone.83 Those who ask for il are often stigmatized, which can be avoided only if the majority of the organization's leaders adopt flexible hours to signal that flextime is acceptable.84 Finally, research in the United Kingdom indicated tha t employees in organizations with flextime do not realize a reduction in their levels of stress, suggesting that this option may not truly improve work- life balance.85 Since flextime is intuitively a worthwhile business practice, these find ings suggest additional research is needed to determine the motivational aspects of flextime.

Job Sharing Job sharing allows two or more people lo split a full-lime job. One might perform the job from 8:00 a.m. lo noon, perhaps and the o ther from 1:00 p.m. lo 5:00 p.m., or the two could work full but alternate days. While it's popular in Europe, it's not a common arrangement in Canada. About 14 percent of Canadian employers offer th is arrangement.86 The reasons it's not more widely adopted are likely the difficulty of finding compatible partners to share a job and the historically negative perceptions of individuals not completely committed lo their jobs and employers.

However, eliminating job sharing for these reasons might be short-sighted. Job shar- ing allows the organization to draw upon the talents of more than one individual in a given job. It also opens up the opportunity to acquire skilled employees- for instance, parents with young chi ldren, retirees, and others desiring flexibility- who might not be available on a full-time basis.87

job sharing The practice of having two or more people splij a 40-hour - a-week job.

182 Part 2 Striving for Performance

telecommuting Working from home at least n•ro days a week on a oomputer lhat is linked to the employer's office.

From the employee's perspective, job sharing can increase motivation and satisfac- tion. An employer's decision to use job sharing is often based on economics. Two parl- lime employees sharing a job can be less expensive than one full-lime employee, but experts suggest this is not the case because training, coordination, and administrative costs can be high. In Canada, benefits do not have lo be paid for those working less than half, which may create an incentive for companies to increase job-sharing arrangements.

Ideally, employers should consider each employee and job separately, seeking to match the skills, personality, and needs of the employee with the tasks required for the job, taking into account that individual's motivating factors.

Telecommuting Telecommuting (sometimes called teleworking) might be close lo the ideal job for many people: no rush-hour traf- fic, flexib le hours, freedom to dress as you please, and few interruptions. Telecommuting refers to working at home- or anywhere else the employee chooses tha t is outside the workplace- at least two days a week on a computer linked to the employer's office.88 {A closely related concept-

Woulol you find telecommuting

motivating'?

working from a virtual office- describes working outside the workplace on a relatively permanent basis.) A sales manager working from home is telecommuting, but a sales manager working from her car on a business trip is not Despite the benefits of telecom- muting, large organizations such as Yahoo! and Best Buy have eliminated it.89 Yahoo! CEO Marissa Mayer discussed how telecommuting may undermine corporate culture, noting, •reople are more productive when they're alone, but they're more collaborative and innovative when they're together. •90

A recent BMO poll found that about 23 percent of Canadian companies offer telecom- muting, 91 which was down from about 40 percent of Canadian companies in 2008.92

What kinds of jobs lend themselves to telecommuting? Writers, attorneys, analysts, and employees who spend the majority of their lime on computers or the phone- telemarketers, customer-service representatives, reservation agents, and product-support special ists- are candidates for telecommuting. As telecommuters, they can access information on their computer screens at home as easi ly as on the company screen in any office.

Vancouver-based TELUS involves many of its employees in its Work Styles program. Employees are

encouraged to work from home or the office, whichever best fits the needs of getting work done. The program has led to increased morale and decreased turnover.

1\ 0 )'1 -+ CAREER OBJECTIVES ~ How Can I Get Flextime?

My job is great , but I can't under- stand why management won't allow flext ime. After all, I often work on a lapt op in the office! I could j ust as easily be working on t he same lapt op at home without int errupt ions from my colleagues. I know I'd be more productive. How can I convince t hem to let me?

-Sophia

Dear Sophia:

We can 't help but wonder two things:

(1) is the ban on working from home a company policy, or your manager's

policy; and (2) do you want flextime,

or telecommuting? If you work for Yahoo!, for instance, you may not be

able to convince anyone to let you work from home after CEO Marissa

Mayer's very public decree against

the policy. If the ban is your man- ager's policy- or even your division's

policy- in an organization open to

alternative work arrangements, you just may be able to get your way.

That leads us to the second ques-

tion, about flextime vs. telecommuting. If you want flextime as you stated and

just want to work from home during

some non-core hours (say, work in the office for six hours a day and work

another two hours a day from home), your employer may be more likely to

grant your wish than if you want to

completely telecommute (work all your hours from home).

Research indicates that employ-

ees are most likely to be granted work-

from-home privileges as a result of a direct sympathetic relationship with their

managers (not as a result of a company

policy). Employees are also more likely to gain aoceptance for partial than for

full telecommuting (either flextime or by

alternating days). It helps if you have a legitimate need to be home and if you do

knowledge-based work. Jared Dalton, for instance, telecommutes two days a

week as a manager for accounting firm

Ernst & Young, and his wife Christina telecommutes on two different days, so

they can oversee the care of their infant.

If it sounds like flextime depends on favouritism, you might be right. It's

also, however, a reflection of the state

of telecommuting: Only 38 percent of US organizations permit some of

their employees to regularly work from

home. To be one of the lucky few: • Check your organization's flexible

options policies.

• Develop a plan tor working from home to show your manager. Include how

many hours/week, which days/week, and where you will work, and explain

how your manager can retain over-

sight of you.

• Assemble evidence on your productivity. Have you worked from

home before? If so, show how much you achieved. You stated you would

be more productive at home: How

much more?

]] RESEARCH FINDINGS: Telecommuting

Chapter 5 Motivation in Action 183

• Outline your reasons for work-

ing from home. Do you need to help care for an aging relative, for

instance? Would working from home save you commuting time you could

use for work?

• Address management's concerns. Research indicates the biggest ones

are the possibility of abuse of the sys-

tem and issues of fairness. • Consider your relationship with your

manager. Has he or she been sup- portive of you in the past? Is your

manager approachable?

When you're ready, discuss your request with your manager. Remem-

ber, pitching the idea of telecommuting

is the same as pitching any idea- you have got to think about what is in it for

your employer, not for yourself.

Sources: "The 2015 WO<kplace Flexibility Study," WOfkp/ace7i'ends.com, Februa,y 3, 2015, https://workplacetrends.com/the- 2015-workplace-llemility-study/ ; T. s. Bernard, "For Workers, Less Flexible Companies," New York Tunes, May 20, 2014, pp. 81, 87; and C. C. Miller and L. Alderman, "The Flexibility Gap," New York Times, December 14, 20 14, pp. 1, 5.

The opinions provided here are of the man8(J· ers and authors only and do not necessariy reflect those of their Ofganizatlons. The authors Of managers are not responsible (Of any errors Of omissions, Of for the results obtained from the use of this information. In no event w/11 the authors Of managers, Of their related partner- ships or corporations thereof, be liable to you Of anyone else (Of any decision made or action taken In reliance on the opinions provided here.

Telecommuting has several potential benefits. These include a larger labour - pool from which lo select (some people can/will only work by telecommuting),

higher productivity, improved morale, and reduced office-space costs. A positive rela- tionship exists between telecommuting and supervisor performance ratings,93 but a relationship between telecommuting and potentially lo\ver turnover intentions has not been substantiated in research to date.94 Beyond the benefits to organizations and its

184 Part 2 Striving for Performance

employees, telecommuting has potential benefits to society. One study estimated that if people in the United States telecommuted half the time, carbon emissions would be reduced by approximately 51 metric tons per year. Environmental savings could come about from lower office energy consumption, fewer traffic jams that emit greenhouse gases, and a reduced need for road repa irs.95

Telecommuting has several downsides too. The major one for management is less direct supervision. In today's team-focused workplace, telecommuting may also make it more difficult for managers to coordinate teamwork and it can reduce knowledge transfer in organizations.96 Managers are also challenged to handle the demotivation of office workers who feel they are unfa irly denied the freedom of telecommuters.97

Contrary to Mayer's conclusions for Yahoo!, research indicates that more creative tasks may actually be best suited for telecommuting, whereas dull repetitive tasks like data entry decrease motivation and thus performance for remote workers.98

From the employee's standpoint, telecommuting can increase feelings of isola- tion and reduce job satisfaction. Research indicates it does not reduce work-family confl icts, perhaps because it often increases work hours beyond the contracted work- week.99 Telecommuters are also vulnerable to the •out of sight, out of mind" effect. Employees who are not at their desks, miss meetings, and don' t share in day-to-day informal workplace interactions may be at a disadvantage when it comes to raises and promotions because they are perceived as not putting in the requisite "face-time." JOO Point/Co1111terpoi11t on page 191 considers whether face-time actually matters. As for a CSR benefit of reducing car emissions by allowing telecommuting, research indica tes that employees actually drive over 45 miles more per day, due to increased personal trips, \vhen they telecommute! JO I

Telecommuting is a contemporary reality, particularly in the minds of employees. The success of telecommuting will always depend on the quality of communications in order to establish good, though remote, working relationships. Telecommuting cer- tain ly does appear to make sense given changes in technology; the nature of work, and preferences of younger workers. Yet as the Yahoo! experience shows, some leaders do not think those benefits outweigh the costs.

Employee Involvement and Participation Bruce Poon lip wants his employees to be happy, and therefore encourages them to embrace the four pillars of happiness. The pillars are being able to grow, being connected, being part of

something bigger than yourself, and having freedom_ 102

Poon Tip explains this code in his book, Looptai/, which is about G Adventures:

I believe that if businesses want to be both sustainable and successful, they have to

infuse their organizations with passion and purpose, as a way to engage the people

inside the business, which will in turn engage people outside of it.

"Mayor" Dave Holmes is an integral part of encouraging employee involvement and participa-

tion at G Adventures. Holmes has to keep the company's more than 1500+ employees in over

100 countries informed and engaged. He does this by creating biweekly newscasts, and by travelling to meet with them. "Creating community, that's a huge part of my role," says Holmes.

Poon lip and Holmes very much share the belief that happy workplaces are productive

workplaces. Says Poon lip:

Happy people do more, they think more, they're more creative, they're more free. And,

ultimately, it's a very sound business decision in all aspects, whether it's attracting the best people or retaining the best people or giving the best customer service on

the planet to your customers. Happy people deliver performance.

Holmes adds, "We see the results from it. We see double-digit growth as a company every year. Our happiness model is working for us."

What other ways can companies encourage employee involvement?

Chapter 5 Motivation in Action 185

Employee involvement and participation (EIP) rn3

are participative and use employees' input to increase their commitment to organizational success. If employees are engaged in decisions that increase their au tonomy and con- trol over their work lives, they will become more motivated, more committed to the organization, more productive, and more satisfied with their jobs. These benefits don't stop with individuals- when teams are given more control over their work, morale and performance increase as well .104

Examples of Employee Involvement Programs

HO\\' do employees

become rnore involved in the

workplace'?

Let's look a t two major forms of employee involvement- participative management and representative participation- in more deta il.

Participative Management The distinct characteristic common to all participative management programs is joint decision making, in which subordinates share a significant degree of decision-making power with their immediate superiors. This sharing can occur either formally through, say, briefings or surveys, or informally through dai ly consultations as a way to enhance motivation through trust and commitment. 105 Participative management has, at times, been considered as the solution for poor morale and low productivity. In rea lity, for participative management to be effective, followers must have trust and confidence in their leaders. Leaders should avoid coercive techniques and instead stress the organiza- tional consequences of decision making to their followers. lD6

Studies of the participation- performance relationship have yielded mixed find- ings.107 Organizations that institute participative management may real ize higher stock returns, lower turnover rates, and higher labour productivity, although these effects are typ ically not large. 108 Research at the individual level indicates participation typically has only a modest influence on employee productivity, motivation, and job sa tisfaction. This does not mean participative management is not beneficial. However, it's not a sure means for improving performance.

Representative Participation Most countries in western Europe require companies to practise representative participation. Representative participation red istributes power within an organization, putting labour's in terests on a more equal footing with the interests of management and stockholders by including a small group of employees as participants in decision making. In the United Kingdom, Ireland, Austral ia, and New Zealand, representative participation was originally the only EIP program, formed to allow employee repre- senta tives to discuss issues outside union agreements, and the representatives were all from the union. However, represen tative groups are now increasingly a mix of union and nonunion, or separate from the union arrangement. rn9

The two most common forms of representation are works councils and board representatives. 110 Works councils are groups of nomina ted or elected employees who must be consulted when management makes decisions abou t employees. Board repre- sentatives are employees who si t on a company's board of directors and represent the employees' interests.

The influence of representative participation on working employees seems to be mixed, but generally an employee would need to feel his or her interests are well rep- resented and make a difference to the organization in order for motivation to increase. Thus representative participation as a motivational tool is surpassed by more d irect participation methods.

In sum, EIP programs clearly have the potential to increase employees' intrinsic motiva tion. The opportuni ty to make and implement decisions- and then see them

f) Describe how employee involvement pro- grams can motivate employees.

employee involvement and participation (EIP) Participa- tive processes that use lhe input of employees and are intended to increase employee commitment to an organizatioo's success.

participative management A process in which subordinates share a significant degree of decisioo- making power wilh their immediate superiors.

representative participation A system in which employees partici- pate in organizational decision making through a small group of representa- tive employees.

186 Part 2 Striving for Performance

Q Describe how knowl· edge of what motivates people can be used to make organizations more motivating.

work out- can contribute to all desirable organizational outcomes. Giving employees control over key decisions, along with ensuring that their interests are represented, can enhance feelings of procedural justice. But, like any other ini tiatives, ElP programs must be carefully designed.

Linking Employee Involvement Programs and Motivation Theories Employee involvement draws on a number of the motivation theories we discussed in Chapter 4. Theory Y is consistent with participative management, and Theory X is consistent with the more traditional autocratic s tyle of managing people. In terms of Herzberg's two-factor theory, employee involvement programs could provide intrinsic motivation by increasing opportunities for growth, responsibi lity, and involvement in the work itself. The opportunity to make and implement decisions- and then see them work out- can help satisfy an employee's needs for responsibil ity, achievement, recog- ni tion, growth, and enhanced self-esteem. Extensive employee involvement programs clearly have the potential to increase employee intrinsic motivation in work tasks. Giving employees control over key decisions, along wi th ensuring that their interests are represented, can enhance feelings of procedural justice.

Motivation: Putting It All Together In Chapter 4, we reviewed basic theories of motivation, considering such factors as how needs affect motivation, the importance of linking performance to rewards, and the need for fair processes. In this chapter, we considered various ways to pay and recognize people, and looked at job design and creating more flexible workplaces. Three Harvard University professors completed two studies that suggest a way to put all of these ideas together to understand (1) what motivates people and (2) how to use this knowledge to make sure that organizational processes motivate. 111

According to the study authors, research suggests that four basic emotional drives (needs) guide individuals. 112 These are the drive to acquire; the drive to bond; the drive to comprehend; and the drive to defend. People want to acquire any number of scarce goods, both tangible and intangible (such as social status). They want to bond with other individuals and groups. They want to understand the world around them. As well, they want to protect aga inst external threats to themselves and others, and want to ensure justice occurs.

Understanding these different drives makes it possible to motivate individuals more effectively. As the s tudy au thors point out, "each drive is best met by a distinct organi- zational lever.• The drive to acquire is met through organizational rewards. The drive to bond can be met by "creat(ing] a culture that promotes teamwork, collaboration, openness, and friendship.• The drive to comprehend is best met through job design and creating jobs that are • meaningful, interesting, and challenging.• The drive to defend can be accompl ished through an organization's performance management and resource allocation processes; th is includes fair and transparent processes for managing perfor- mance and adequate resources to do one's job. Exhibit 5-5 indicates concrete ways that organizational characteristics can address individual drives.

uF GLOBAL IMPLICATIONS \ (~ ) Do the motivational approaches we have discussed vary by cuhure7 Because ~ we have covered some very different approaches in th is chapter, let's break down our analysis by approach. Not every approach has been studied by cross- cullural researchers, so we consider cross-cultural differences in ( 1) variable pay, (2) flexible benefits, (3) job characteristics and job enrichment, (4) telecommuting, and (5) employee involvement.

Chapter 5 Motivation in Action 187

EXHIBIT 5-5 How to Fulfill the Drives That Motivate Employees

DRIVE PRIMARY LEVER

· , Reward System

. . . .

Culture

Job Design

Performance Management and Resource Allocation Processes

ACTIONS

• Sharply differentiate good performers from average and poor performers

• Tie rewards clearly to performance

• Pay as well as your competitors

• Foster mutual reliance and friendship among co-worke<s

• Value collaboration and teamwork

• Encourage sharing of best practices

• Design jobs that have distinct and important roles in the organization

• Design jobs that are meaningful and foste< a sense of contribution to the organization

• Increase the transparency of all processes

• Emphasize their fairness

• Build trust by being just and transparent in granting rewards, assignments, and other forms of recognit ion

Source: N. Nohria, B. Groysberg, and L.-E. Lee, "Employee Motivation: A Powerful New Model,' Ha,vard Business Review 86, no. 7- 8 (July- August 2008), p. 82.

Variable Pay Globally, around 80 percent of companies offer some form of variable-pay plan. In Latin America, more than 90 percent of companies offer some form of variab le-pay plan. In the United States, 91 percent of companies offer a variable-pay program.113 In La tin America, companies also have the highest percentage of total payroll allocated to variable pay, at nearly 18 percent. European and US companies are at about 12 per- cent.114 When it comes to executive compensation, Asian companies outpace Western companies in their use of variable pay.11 5

Flexible Benefits Given the intuitive motivational appeal of flexible benefi ts, it may be surprising that their usage is not yet global. In China, only a limited percentage of companies offer flexible plans, 116 as in other Asian countries.117 Almost all major corporations in the United States offer them. A similar survey of firms in the United Kingdom found that nearly all major organiza tions were offering flexible benefits programs, with options ranging from supplemental medical insurance lo holiday trad ing (with co-workers), discounted bus travel, and child-care assistance. 118

Job Characteristics and Job Enrichment A few studies have tested the )CM in different cultures, but the resu lts are not very consistent. 119 The fact that the model is re latively individualistic {il considers the

188 Part 2 Striving for Performance

LESSONS LEARNED

• Money is not a motivator for all indiv iduals.

• Effective reward systems link pay Lo performance.

• Jobs characterized by variety, autonomy, and feedback are more motivating.

relationship between the employee and h is or her work) suggests job enrichment strategies may no t have the same effects in collectivistic cultures as in individualistic cultures (such as the United States). Indeed, one study in Niger found that while the MPS was highly influenced by job d imensions, the correlations were differen t than the general data gathered from predominately individualist countries.120 In contrast, another study suggests that the degree to which jobs have intrinsic job characteristics predicted job satisfaction and job involvement equally well for American, Japanese, and Hungarian employees. 121

Telecommuting While the movement away from te lecommuting by some companies made head- lines, it appears that for most organizations, it remains popular. Almost 50 percent of managers in Germany, the United Kingdom, and the United States are permit- ted telecommuting options. In developing countries, this percentage is between 10 and 20 percent. 122 Telecommuting is less practised in China, but there, too, it is growing. 123

Employee Involvement To be successful, EIP programs should be tailored to local and national norms. 124 A study of four countries, including the United States and India, confirmed the impor- tance of modifying practices to reflect national culture. 125 While US employees read- ily accepted EIP programs, managers in India who tried to empower their employees through employee involvement programs were rated low by those employees. These reactions are consistent with India's h igh power-distance culture, which accepts and expects differences in au thority. The work culture in India may not be in as much transition as in China, where some employees are becoming less high power-distance oriented. Chinese employees who were very accepting of trad itional Chinese cultural values showed few benefits from participative decis ion making. However, Chinese employees who were less traditional were more satisfied and had higher performance ratings under participative management. 126 Another study conducted in China, however, showed that involvement increased employees' thoughts and feelings of job security, enhancing their well-being. 127 These differences within China may well reflect the current transitional nature of that culture. For example, research in urban China indicated that some aspects of EIP programs, namely those that favour con- sultation and expression but no t participation in decision making, yield higher job sa tisfaction. 128

Summary As we have seen in this chapter, understanding what motivates individuals is ultimately the key to organizational performance. Employees whose differences are recognized, who feel valued, and who have the opportunity to work in jobs tailored to the ir s trengths and interests will be motivated to perform at the highest levels. Employee participation also can increase employee productivity, commitment to work goals, motivation, and job satisfaction. However, we cannot overlook the powerful role of organizational rewards in influencing motivation. Pay, benefits, and intrinsic rewards must be carefully and thoughtfully designed in order to enhance employee motivation toward positive organizational outcomes.

Chapter 5 Motivation in Action 189

SNAPSHOT SUMMARY I

From Theory to Practice: The Role of Money

Creating Effective Reward Systems • What to Pay: Establishing a

Pay Structure

• How to Pay: Rewarding Individuals through Valiable- Pay Programs

• Flexible Benefits: Developing a Benefits Package

• Intrinsic Rewards: Employee Recognition Programs

Mylab Management

• Beware the Signals That Are Sent by Rewards

Motivating by Job Redesign

• The Job Characteristics Model • Job Redesign in the Canadian

Context: The Role of Unions

• How Can Jobs Be Redesigned?

• Relational Job Design

• Alternative Work Arrangements

• Flextime

Employee Involvement and Participation • Examples of Employee

Involvement Programs • Linking Employee Involvement

Programs and Motivation Theories

Motivation: Putting It All Together

Study, practise, and explore real business situations with these helpful resources:

• Study Plan: Check your understanding of chapter concepts with self-study quizzes.

• Online Lesson Presentations: Study key chapter topics and work through interactive assessments to test your knowledge and master management concepts.

• Videos: Learn more about the management practices and strategies of real companies.

• Simulations: Practise management decision-making in simulated business environments.

-"' a:I C)

.,. for Review

What is variable pay? What variable-pay programs are used to motivate employees? What are their advantages and disadvantages?

How can flexible benefits moti· vate employees?

What are the motivational ben· efits of intrinsic rewards?

What is the job characteristics model? How does it motivate employees?

What are the main ways that jobs can be redesigned? In your view, in what situations would one of the methods be favoured over the others?

What are the three alternative work arrangements of flextime, job sharing, and telecommuting? What are the advantages and disadvantages of each?

What are employee involvement programs? How might they increase employee motivation?

How can motivation theories be used to create more motivating work environments?

for Managers

• Recognize individual differences: Spend the time necessary to understand what is important to each employee. Design jobs to align with individual needs and maximize their motivation potential.

• Use goals and feedback. Give employees firm, specific goals, and provide them with feedback on how well they are doing in pur- suit of those goals.

• Allow employees to participate in decisions that affect them. Employees can contribute to set· ting work goals, choosing their own benefits packages, and solving productivity and quality problems.

• Link rewards to performance and ensure that employees perceive the link between the two.

• Check the system for equity. Employees should perceive that individual effort and outcomes explain differences in pay and other rewards.

for You

• Because the people you interact with appreciate recognition, con- sider including a brief note on a nice card to show thanks for a job well done. Or you might send a basket of flowers. Sometimes just sending a pleasant, thankful email is enough to make a person feel valued. All of these things are easy enough to do, and appreci- ated greatly by the recipient.

• If you are working on a team or in a volunteer organization, try to find ways to motivate co-workers using the job characteristics model. For instance, make sure that everyone has some tasks over which they have autonomy, and make sure people get feedback

on their work.

• When you are working on a team project, think about whether

everyone on the team should get the same reward, or whether rewards should be allocated according to performance. Individual-based performance rewards may decrease team cohesiveness if individuals do not cooperate with one another.

Chapter 5 Motivation in Action 191

''FACE-TIME'' MATTERS

POI NT Although allowing people to work from home is gaining

popularity, telecommuting will only hurt them and their

employers.129 Sure, employees say they are happier

when their organization allows them the flexibility to work

wherever they choose, but who would not like to hang around at home in their pyjamas pretending to work?

I know plenty of colleagues who say, with a wink, that

they are taking off to •work from home" the rest of the

day. Who knows whether they are really contributing?

The bigger problem is the lack of face-to-face inter-

action between employees. Studies have shown that great ideas are born through interdependence, not inde-

pendence. It's during those informal interactions around

the water cooler or during coffee breaks that some of the

most creative ideas arise. If you take that away, you stifle

the organization's creative potential. Trust is another problem. Have you ever trusted

someone you have not met? Probably not. Again, face-

to-face interactions allow people to establish trust-

ing relationships more quickly, which fosters smoother

social interactions and allows the company to perform

better. But enough about employers. Employees also benefit

when they are at the office. If you are out of sight, you

are out of mind. Want that big raise or promotion? You

are not going to get it if your supervisor does not even

know who you are. So think twice the next time you either want to leave

the office early or not bother coming in at all, to "work

from home."

COUNTERPOINT Please. So-called face-time is overrated. If all managers

do is reward employees who hang around the office the

longest, they are not being very good managers. Those

who brag about the 80 hours they put in at the office

(being sure to point out they were there on weekends) are not necessarily the top performers. Being present is

not the same thing as being efficient.

Besides, there are all sorts of benefits for employees

and employers who take advantage of telecommuting

practices. For one, telecommuting is seen as an attrac-

tive perk companies can offer. With so many dual-career earners, the flexibility to work from home on some days

can go a long way toward achieving a better balance

between work and family. That translates into better

recruiting and better retention. In other words, you will

get and keep better employees if you offer the ability to work from home.

Plus, studies have shown that productivity is higher,

not lower, when people work from home. This result is

not limited to the United States. For example, one study

found that Chinese call centre employees who worked

from home outproduced their "face-time" counterparts by 13 percent.

You say all these earth-shattering ideas would pour

forth if people interacted. I say consider that one of the

biggest workplace distractions is chatty co-workers. So,

although I concede that there are times when "face-time"

is beneficial, the benefits of telecommuting far outweigh the drawbacks.

192 Part 2 Striving for Performance

BREAKOUT GROUP EXERCISES

Form small groups to discuss the following topics, as assigned by your instructor:

1. How might the job of student be redesigned to make it more motivating?

2. What is your ideal job? To what extent does it match up with the elements of the JCM?

3. Would you prefer working from home or working at the office? Why?

EXPERIENTIAL EXERCISE

Analyzing and RedesigningJobs Break into groups of 5 to 7 members each. 130 Each student should describe the worst job he or she has ever had. Use

any criteria you want to select 1 of these jobs for analysis by the group. Members of the group will analyze the job selected by determining how well it scores on the job characteristics

model. Use the following scale for your analysis of each job dimension:

7 = Very high 6 = High 5 = Somewhat high

4 = Moderate 3 = Somewhat low 2=Low

1 = Very low

The following sample questions can guide the group in its analysis of the job in question:

• Skill variety. Describe the different identifiable skills required to do this job. What is the nature of the oral,

written, and/or quantitative skills needed? What physical skills are required? Does the job holder get the

opportunity to use all of his or her skills?

• Task identity. What is the product that the job holder creates? Is he or she involved in its production from

beginning to end? If not, is he or she involved in a particular phase of its production from beginning to end?

• Task significance. How important is the product? How important is the job holder's role in producing it? How important is the job holder's contribution to the people he or she works with? If the job holder's job were

eliminated, how inferior would the product be?

• Autonomy. How much independence does the job holder have? Does he or she have to follow a strict

schedule? How closely is he or she supervised?

• Feedback. Does the job holder get regular feedback from his or her manager? From peers? From his or her staff? From customers? How about intrinsic performance feedback When doing the job?

Using the formula found on page 177, calculate the job's motivating potential score. Discuss Whether you think this

score accurately reflects your perceptions of the motivating potential of these professions.

Using the suggestions offered in the chapter for redesigning jobs, describe specific actions that management could

take to increase this job's motivating potential.

Calculate the costs to management of redesigning the job in question. Do the benefits exceed the costs?

Conclude the exercise by having a representative of each group share his or her group's analysis and redesign sug-

gestions with the entire class. Possible topics for class discussion might include similarities in the jobs chosen, problems

in rating job dimensions, and the cost- benefit assessment of design changes.

Chapter 5 Motivation in Action 193

ETHICAL DILEMMA

Are CEOs Paid Too Much? Critics have described the astronomical pay packages given to Canadian and American CEOs as "rampant

greed."131 In 2015, the average annual compensa-

tion of CEOs in Canada's 100 largest companies was

$9.5 million, up from $8.86 million in 2014. The 2015

CEO compensation was 193 times what the average full -time Canadian employee earned in 2015 ($49 51 OJ. Canadian CEOs may feel they are underpaid, though,

if they compare themselves with a similar group of

American CEOs, whose median pay was US$13. 1 mil-

lion in 2016, and 34 7 times that of the average pay for

US employees. How do you explain such large pay packages for

CEOs? Some say that executive compensation rep-

resents a classic economic response to a situation in

which the demand is great for high-quality top-executive

talent, and the supply is low. Other arguments in favour of paying executives millions a year are the need to

compensate people for the tremendous responsibilities

and stress that go with such jobs; the motivating poten-

tial that seven- and eight-figure annual incomes provide

to senior executives and those who might aspire to be;

and the influence of senior executives on the company's bottom line.

Critics of executive pay practices in Canada and the

United States argue that CEOs choose board members

whom they can count on to support ever-increasing pay

for top management. If board members fail to "play along,•

they risk losing their positions, their fees, and the prestige

and power inherent in board membership.

In addition, it's not clear that executive compensation

is tied to firm performance. For example, a 2014 analysis

of compensation data by Equilar showed little correlation

between CEO pay and company performance. Consider

the data in Exhibit 5-6, which illustrates the disconnect

that can sometimes happen between CEO compensa-

tion and firm performance. Rnancia/ Post Magazine uses

a "Bang for the Buck" formula to calculate which CEOs

were overpaid (or underpaid), based on their company's

performance.

Is high compensation of CEOs a problem? If so, does

the blame for the problem lie with CEOs or with the share-

holders and boards that knowingly allow the practice? Are

Canadian and American CEOs greedy? Are these CEOs

acting unethically? Should their pay reflect more closely

some multiple of their employees' wages? What do you

think?

EXHIBIT 5-6 2017 Compensation of Canada's Most Overpaid CEOs*

Pay Received Amount CEO(s) (2-Year Avg.) Pay Deserved Overpaid

1. Darren Enthistle, Joe Natale, TELUS, $14 680 000 $5894 000 $8 786000 Vancouver, British Columbia

2. Brendan Bell, Robert Gannicott, $8 765 000 $1 564 000 $7 201 000 Dominion Diamond, Toronto, Ontario

3. Bradley Shaw, Shaw Communications, $10 144 000 $3508 000 $6636000 Calgary, Alberta

4. Geoffrey Martin, CCL Industries, $9950000 $4 923 000 $5 026000 Toronto, Ontario

5. Sean Boyd, Agnico Eagle Mines, $9 688000 $4 876 000 $4 812 000 Toronto, Ontario

"Rnancial Post Magazine uses a "Bang for lhe Buck• formula 10 calculale the amounl overpaid, laking inlo accounl CEO performance variables.

Source: "How Much Do They Make? Which Canadian CEOs Are Overpaid and Who Oesenies More," Financial Post Magazine, November 9, 2017. http://business.financialpos1.com/financial-pos1 -magazine/from-bigges1-bank·for-lhe-buck·lo-mos1-overpald- how-canadas· lop-business-leaders-stack·up.

194 Part 2 Striving for Performance

CASE I NCI DENTS

Motivation for Leisure "When I have time I don't have money. When I have money

I don't have time,• says Glenn Kelman, CEO of Redfin.132

He is not alone. While many employees find themselves

faced with 60-, 70-, or 80-hour weeks (and sometimes

more), others who are unemployed can find themselves

with too much time on their hands. Take Dennis Lee, a sales associate whose girlfriend is unemployed. She has

time to spare, but he says her unemployment makes it

"financially impossible for me to support the both of us,

even if we just go on a small trip, and get a small hotel and stay for a couple of days."

Those who are employed and who may have the

financial means to take a vacation often leave those vaca-

tion days on the table. The average Canadian employee

receives almost four weeks of vacation time a year, and

76 percent take their full vacation time. The average US

employee gets 2.6 weeks of vacation a year, yet only 43 percent take that time.

The challenge of taking leisure time does not seem

to be a problem for employees in many European coun-

tries. Take the French, who get 30 days of vacation and

say they take all of them. Employees in Spain, Italy, and

Germany get about the same time off. Moreover, if you

work in the European Union and get sick on vacation, the

European Court of Justice states that you are entitled to

take a make-up vacation.

Questions

1. Do you think North American employees are less motivated by vacation time than employees in other

countries?

2. Why do you think Canadian workers often do not take all of their allotted vacation time, even when they may lose the benefit?

3. If many unemployed people spend around two hours per day looking for work , as some research indicates, how would you evaluate the impact of unemployment on work motivation? How would you spend your days if you were unemployed?

Pay Raises Every Day How do you feel when you get a raise?133 Happy?

Rewarded? Motivated to work harder for that next raise?

The hope of an increase in pay, followed by a raise, can increase employee motivation. However, the effect may

not last. In fact, the "warm fuzzies" from a raise last less

than a month, according to a recent study. If raises are

distributed annually, performance motivation can dip for

many months in between evaluations.

Some organizations have tried to keep the motivation

going by increasing the frequency of raises. Currently, only

about 5 percent of organizations give raises more than

annually, but some larger employers like discount website

retailer Zulily, Inc ., assess pay quarterly. Zulily CEO Darrell

Cavens would like to do so even more frequently. "If it

wasn't a big burden, you'd almost want to work on it on

a weekly basis," he said. That's because raises increase

employee focus, happiness, engagement, and retention.

Jeffrey Housenbold, CEO of online photo publisher

Shutterfly, Inc., also advocates frequent pay assess-

ments, but for a different reason. The company gives

bonuses four times a year to supplement its biannual

raise structure as part of a review of employee concerns.

"You can resolve problems early versus letting them fes-

ter," he said. Another reason is to increase feedback.

Phone app designer Solstice Mobile gives promotions

and salary increases six times a year; with this structure,

Kelly O'Reagan climbed from $10/hour to $47.50/hour

in four years. The company's CEO, John Schwan, said

that young workers are especially motivated by the near-

constant feedback. O'Reagan said, "Seeing that increase

was like, 'Wow, this is quite different than what I had ever

dreamed of. "'

You might be wondering how organizations can keep

the dollar increases to employees flowing. Organizations

are wondering, too. One tactic is to start employees at

a low pay rate. Ensilon, a marketing services company,

has coupled low starting salaries with twice-yearly salary

reviews. Initial job candidates are skeptical, but most of

the new hires earn at least 20 percent more after two

years than they would with a typical annual raise structure.

Chapter 5 Motivation in Action 1 95

Quest.ions No one is saying frequent pay raises are cheap, or easy to administrate. Pay itself is a complex issue, and main-

taining pay equity adds another level of difficulty. Frequent

pay reviews are motivating, but only for the people receiv-

ing them - for the others, it's a struggle to stay engaged. If

a person has a track record of raises and then pay levels

off, it can feel like a loss of identity as a strong performer

rather than a natural consequence of achieving a higher

level of pay. The frustration can lead to lower performance

and increased turnover for high performers. CEO Schwan

acknowledged, "It's definitely a risk."

1. Do you think frequent, small raises or annual, larger raises are more motivating? Why?

2. Do you think you would personally be more moti- vated by more frequent raises or by performance bonuses if the annual amounts were the same?

3. Annual pay raises in the United States are expected to be around 3 percent during the next few years. Do you think this percentage is motivating to employees? Why or why not?

1. Combine tasks. Managers should seek to take existing and fraction- alized tasks and put them back together to form a new and larger module of work. This increases skill variety and task identity.

2. Create natural work units. The creation of natural work units means that the tasks an employee does form an identifiable and meaningful whole. This increases employee •ownership" of the work and improves the likelihood that employees will view their work as meaningful and important rather than as irrelevant and boring.

3. Establish client relationships. The c lient (who may be an "internal customer" or someone outside the organization) is the user of the product or service that the employee works on. Wherever possible, managers should try to establish direct relationships between employees and their clients. This increases skill variety, autonomy, and feedback for the employee.

4. Expand jobs vertically. Vertical expansion gives employees responsibili- ties and control that were formerly reserved for management. It seeks to partially close the gap between the "doing" and the •controlling" aspects of the job, and it increases employee autonomy.

EXHIBIT 5-7 Guidelines for Enriching a Job

Suggested Action Core Job Dimensions

Combine tasks Skill variety

Form natural work units Task ident i ty

Establish client relationships

Expand jobs vertically Autonomy

Open feedback channels Feedback

Designing Enriched Jobs How does management enrich

an employee's job? The following

suggestions, based on the JCM,

specify the types of changes in

jobs that are most likely to lead to

improving their motivating poten-

tial (also see Exhibit 5-7).134

196 Part 2 Striving for Performance

• • • • • ••••••••••••••

Practising Skills

•••••••••••

Reinforcing Skills

5. Open feedback channels. By increasing feedback, employees not only learn how well they are performing their jobs, but also whether their performance is improving, deteriorating, or remaining at a constant level. Ideally, this feedback about performance should be received directly as the employee does the job, rather than from management on an occasional basis. For instance, at many restaurants you can find feedback cards on the table to indicate the quality of service received during the meal.

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

You own and manage Sunrise Deliveries, a small freight transportation

company that makes local deliveries of products for your customers. You have a total of nine employees- an administrative assistant, two ware-

house personnel, and six delivery drivers.

The drivers' job is pretty straightforward. Each morning they come in at 7:30 a.m., pick up their daily schedule, and then drive off in their pre-

loaded trucks to make their stops. They occasionally will also pick up

packages and return them to the Sunrise warehouse, where they will be unloaded and redirected by the warehouse workers.

You have beoorne vety concerned with the high turnover among your driv-

ers. Of your current six drivers, three have been working for you less than two months and only one's tenure exceeds six months. This is frustrating because

you are paying your drivers more than many of the larger delivery companies like UPS and FedEx. This turnover is getting expensive because you con-

stantly have to spend time finding and training replacements. It's also hard

to develop a quality customer-service program when customers constantly see new faces. When you have asked departing drivers why they are quitting,

common complaints include: "There's no room for advancement," ''The job is

boring," and "All we do is drive." What should you do to solve this problem?

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

1. Think of the worst job you have ever had. Analyze the job according to the five dimensions identified in the JCM. Redesign the job to make it more satisfying and motivating.

2. Spend one to three hours at various times observing employees in your college dining hall. What actions would you recommend to make these jobs more motivating?

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e 0 e

198

Groups and Teamwork

Define group and team.

Analyze the growing popularity of teams in orga- nizations.

Contrast the five types of teams.

Show how role requirements change in different situations.

Demonstrate how norms exert influence on an individual's behaviour.

How can a team come

together and learn how to serve lunch to

youngsters in summer camp in just

a week?

0 Identify the five stages of group development. f) Identify the characteristics of effective teams. e Explain the implications of diversity for group

effectiveness.

0 Show how group size affects group performance. Q) Decide when to use individuals instead of

teams.

usan Wright launched Toronto-based Summe~unch+ as a charity in the summer of 2016, after develop- ing plans and raising funds during the previous eight months.1 She had recognized for a number of years

that lunch is not available in the summer for many children who receive subsidized lunches

at school during the regular school year. Summerlunch+ provides healthy lunches

and nutrition information through sev- eral summer camps in the Thornhill

area of Toronto. This is an area susan \Mijlt where children are less likely

to have access to healthy food. "There's so much benefit to eating well," she notes. "There is a ton of good research that supports that kids who eat a healthy meal do better in school and they do,

overall, better in life." Wright's challenge in launching the program was to create something that could run efficiently each summer without a lot of start-up costs. She relies on both secondary

and post-secondary students to work in the program (in this photo, Wright [top right) appears with one of her teams). The Toronto District School Board provides local

students through one of its volunteer programs, and has permitted the use of several of the area's public school kitchens. Canada Summer Jobs grants

have allowed Wright to hire university students studying nutrition. The students are all young, and there is often a difference in the

maturity level of secondary and post-secondary students, yet Wright needs them to work together, and to start doing it quickly. The high school students help prepare the lunches and the university students

need to earn their respect quickly. The program runs for six to eight weeks, delivering lunches to several of the summer camps in the area. Developing teamwork among the student volunteers and leaders is one

of the most important things Wright needs to do. For teams to excel, a number of conditions need to be met. Effective teams need wise leadership, a variety of

resources, and a way to solve problems. Team members need to be dedicated and they need to build trust. In this chapter, we examine when it's best to have a team, how

to create effective teams, and how to deal with diversity on teams.

\ I I

:'o': , ' , '

• Ever wonder what causes flurries of activity in groups? 'l'IIE BIG IDEA • Should individuals be paid for their teamwork or their individual performance?

• Why do some team members seem to get along better than others?

• Why don't some team members pull their weight?

Effective Leains do not si1nply happen. They

require attention Lo process, teain co1nposilion, and

re\\'ards.

199

200 Part 2 Striving for Performance

O Define group and team.

f) Analyze the growing popularity of teams in organizations.

9 Contrast the five types of teams.

group Two or more people with a oommoo relaliooship.

team A group whose individual efforts result in performance that is greater 1han 1he sum of the individual inputs.

Teams vs. Groups: What Is the Difference? There is some debate whether groups and teams are really separate concepts or whether the two terms can be used interchangeably. We th ink that there is a subtle difference between the terms. A group is two or more people with a common relationship. Thus a group could be co-workers, or people meeting for lunch or standing at the bus stop. Unlike teams, groups do not necessari ly engage in collective work that requ ires inter- dependent effort.

A team, on the other hand, generates positive synergy through coordination. The indi- vidual efforts result in a level of performance greater than the sum of the individual inputs.

Groups become teams when they meet the following conditions:2

• Team members share leadership.

• Both individuals and the team as a whole share accountability for the work of the team.

• The team develops its own purpose or mission.

• The team works on problem solving continuously, rather than just at scheduled meeting times.

• The team's measure of effectiveness is the team's outcomes and goals, not indi- vidual outcomes and goals.

Thus, while not all groups are teams, all teams can be considered groups. Much of what we discuss in th is chapter appl ies equally well to both, even though there are some important distinctions between the two.

Why Have Teams Become So Popular? The organization that does not use teams has become newsworthy Teams are everywhere. How much time is spent working in teams? One s tudy found that "the time spent by managers and employees in collaborative activities has ballooned by SO percent or more" over the last two decades. ll is not unusual a t some companies for employees to spend three-quarters of their day communicating with co-workers.3

As organizations have restructured themselves to compete more effectively and efficiently, they have turned to teams as a beu er way to use employee talents. Management has found that teams are more flexible and responsive to changing events than are trad itional departments or other forms of permanent groupings. Teams have the capability to quickly assemble, dep loy, refocus, and disband. Teams also can be more motivational. Recall from the job characteristics model discussed in Chapter 5 that having greater task identity is one way of increasing motivation. Teams allow for greater task identity, with team members working on tasks together. However, teams are not necessarily appropriate in every situation. Are teams truly effective? What conditions affect their potential7 How do members work together? These are some of the questions we will answer in this chapter.

Types of Teams Teams can make products, provide services, negotia te dea ls, coordinate projects, offer advice, and make decisions.4 In this section, first \Ve describe the four most common kinds of teams you are likely to find in organizations:

• Problem-solving ( or process-improvement) teams

• Self-managed ( or self-directed) teams

• Cross-functional ( or project) teams

• Virtual teams

Chapter 6 Groups and Teamwork 201

EXHIBIT 6-1 Four Types of Teams

• . , ... .. ..... .. ·: .. . . . ·.: :.~·. . .. • ·:~ .. , .•

Problem-solving Self-managed Cross-functional

The types of relationships that members within each team have to one another are shown in Exhibit 6-1. Later in th is section, we also describe multiteam systems, which use a "team of teams• and are becoming increasingly widespread as work increases in complexity.

Problem-Solving Teams Qual ity-control teams have been in use for many years. Originally seen most often in manu- facturing plants, these were permanent teams that generally met at a regular time, sometimes weekly or daily, to address quality standards and any problems with the products made. The medical field in particular has recently implemented quality teams to improve their services in patient care. Problem-solving teams like these rarely have the authority to unilaterally implement their suggestions, but if their recommendations are paired with implementation processes, some significant improvemenL~ can be realized.

Self-Managed Teams Problem-solving teams only make recommendations. Some organizations have gone further and created teams that also implement solutions and take responsibility for outcomes.

A self-managed (or self-directed) team is typically made up of 10 to 15 employ- ees. The employees perform highly related or interdependent jobs; these teams take on some supeivisory responsib ilities.5 fypically, the responsibi lities include planning and scheduling of work, assigning tasks lo members, making operating decisions, taking action on problems, and working with suppliers and customers. Fully self-managed teams even select their own members who evaluate one another's performance. When these learns are established, former supeivisory positions can take on decreased impor- tance and may even be eliminated.

Research results on the effectiveness of self-managed work teams have nol been uniformly positive.6 Some research indicates that self-managed teams may be more or less effective based on the degree to which team-promoting behaviours are rewarded. For example, one study of 45 self-managing teams of factory employees found that when team members perceived that economic rewards such as pay were dependent on input from their teammates, performance improved for both individuals and the learn as a \vhole.7

A second area of research focus has been the impact of conflict on self-managed work team effectiveness. Some research indicates that self-managed teams are not effective when there is conflict. When d isputes arise, members often stop cooperat- ing and power struggles ensue, which lead to lower group performance.8 However, other research indicates that when members feel confident they can speak up without being embarrassed, rejected, or punished by other team members-in other words,

Technology . ~-::·. ,:.;, ..

. .... -~· ......

... . ,

• •• Virtual

problem-solving (or process- improvemenl) team A group of 5 lo 12 employees from the same department v.tio meel for a few hours each week lo discuss ways of improv- ing quality. efficiency, and the wol1< environment.

self-managed (or self-directed) team A group of 10 lo 15 employ- ees who lake on many of lhe respon- sibilities of !heir former managers.

202 Part 2 Striving for Performance

cross-functional (or project) team A group of employees at about the same hierarchical level, but from different 1•,011( areas. who come together to accomplish a task.

Harley-Davidson Motor Company uses cross-functional teams at all levels of its o rganization in creat- ing new products, such as its first electric motorcycle, shown here. From product conception to launch, cross-functional teams include Harley employees from product planning, engineering, design, marl<eting,

manufacturing, and purchasing.

when they feel psychologically safe- confl ict can be beneficial and boost team performance. 9

Third ly, research has explored the effect of self-managed work teams on member behaviour. Here again the findings are mixed. Although individuals on teams report higher levels of job satisfaction compared with other individuals, studies indicate they sometimes have higher absenteeism and turnover rates. One large-scale study of Jabour productivity in British establishments fo und that, although using teams improved individual (and overall) Jabour productivity, no evidence supported the claim that self-managed teams performed better than traditional teams with Jess decision-making authority. JO On the whole, it appears that for self-managing teams to be advantageous, a number of facil itating factors must be in place. Point/Counterpoint on page 234 considers whether empowerment is key to effective teams.

Cross-Functional Teams Starbucks created a team of individuals from production, global PR, global communi- cations, and marketing to develop its VIA brand of instant coffee. The team's suggestions resulted in a product that would be cost-effective to produce and distribute and that was marketed with a tightly integrated, multifaceted strategy. 11 This example illustrates the use of cross-functional (or project) teams, made up of employees from about the same hierarchical level but different work areas, who come together lo accomplish a task.

Cross-functional teams are an effective means for allowing people from diverse areas with in an organization (or even between organizations) lo exchange informa- tion, develop new ideas, solve problems, and coordinate complex projects. However, due to the high need for coordination, cross-functional teams are not easy lo manage. First, il makes sense for power shifts to occur as differen t expertise is needed because

Chapter 6 Groups and Teamwork 203

the members are at roughly the same level in the organization, which creates leadership ambiguity. A climate of trust thus needs to be developed before shifts can happen with- out undue confl ict.12 Second, the early stages of development are often lime-consuming as members learn to work with diversity and complexity. Third, it takes t ime to bui ld trust and teamwork, especially among people from varying backgrounds with different experiences and perspectives.

In sum, the strength of trad itional cross-functional teams is the collaborative effort of individuals with diverse skills from a variety of disciplines. When the unique perspec- tives of these members are considered, these teams can be very effective.

Virtual Teams Problem-solving, self-managed, and cross-functional teams do their work face to face, whereas virtual t eam s use computer technology to tie together physically dispersed members in order to achieve a common goal. 13 They collaborate online- using com- munication links such as wide-area networks, corporate social media, videoconferenc- ing, and email- whether members are nearby or continents apart. Nearly all teams today do at least some of their work remotely.

Virtual teams should be managed d ifferently than face-to -face teams in an office, partially because virtual team members may not in teract along traditional hierarchi- cal patterns. Because of the complexity of interactions, research indicates that shared

leadership of virtual teams may significantly enhance team performance, although the concept is sti ll in development. 14 For virtual teams to be effective, management should

ensure that (I) trust is established among team members ( one inflammatory remark in a team-member email can severely undermine team trust); (2) team progress is moni- tored closely (so the team does not lose sight of its goals and no team member "disap- pears"); and (3) the efforts and products of the virtual team are publ icized throughout

Queen's School of Business started an innovative executive MBA program in 201 1 that relies on a virtual team of students. While there are three residential sessions during the program, most courses are taught

in virtual boardroom sessions with students participating from home. "The program offers the same real- time connectivity and interactivity as our boardroom learning centres, but offers more accessibility to a top-ranked program to participants who wouldn't otherwise have the time or be able to physically be in a

boardroom location on weekends,• said Gloria Saccon, director of the executive MBA program. 15

virtual team A team that uses oomputer technology to tie together physically dispersed members in order to achieve a oommoo goal.

204 Part 2 Striving for Performance

.. _

~ OB ~cr10N Managing Virtual Teams

Establ ishing trust and commitment, encourag- ing communication, and assessing team mem- bers pose tremendous challenges for virtual team managers. Here are a few lips to make the process easier:

-+ Establ ish regular times for group interaction.

-+ Set up firm rules for communication.

-+ Use visual forms of communication where possible.

-+ Copy the s tyle of face-to-face teams. For example, allow time for informal chitchat and socializing, and celebrate achievements.

-+ Give and receive feedback and offer assis- tance on a regular basis. Be persistent with people who are no t communicating with you or one another.

-+ Agree on standard technology so all team members can work together easily

-+ Consider using 360-degree feedback to bet- ter understand and evaluate team members.

-+ Provide a virtual meeting room via an intranet, website, or bulletin board.

-+ Note which employees effectively use email to build team rapport.

-+ Smooth the way for the next assignment if membership on the team, or the team itself, is not permanent.

-+ Be available to employees, but don't wail for them to seek you out.

-+ Encourage informal, off-line conver sation between team members. 16

the organization (so the team does not become invisible).17 For even more tips, see OB in Accion- Managing Virtual Teams.

I l would be a mistake to think virtual teams are an easy substitute for face-lo-face teams. While the geographical reach and immediacy of on line communication make virtual teams a natural development, and whi le virtua l teams can contribute to environmental sustainability, as Focus on Ethics shows, managers must make certain this type of team is the optimal choice for the desired outcome and then maintain an oversight role through- out the collaboration.

Multiteam Systems The types of teams we have described so far are typ ically smaller, s tandalone teams, although their activities relate lo the broader objectives of the organization. As tasks become more complex, teams often grow in size. Increases in team size are accompanied by higher coordination demands, creating a tipping point at which the addition of another member does more harm than good. To solve this problem, organizations use multiteam systems, collections of two or more interdependent teams that share a superordinate goal. In other words, multi team systems are a "team of teams." 19

To picture a multiteam system, imagine the coordination of response needed after a major car accident. There is the emergency medical services team, which responds first and transports the injured to the hospital. An emergency room team then takes over, providing medical care, followed by a recovery team. Although the emergency services team, the emergency room team, and the recovery team are technical ly independent, their activities are inter- dependent, and the success of one depends on the success of the others. Why? Because they all share the higher goal of saving lives.

Some factors that make smaller, more traditional teams effec- tive do not necessari ly apply lo multiteam systems and can even hinder their performance. One s tudy showed that multiteam systems performed better when they had "boundary spanners• whose jobs were to coordinate with members of the other sub- teams. This reduced the need for some team member commu- nication, which was helpful because it reduced coordination demands.20 Leadership of multiteam systems is also much dif- ferent than for standalone teams. While leadership of all teams affects team performance, a multiteam leader must both facilitate coordination among teams and lead each team. Research indi- cated teams that received more a ttention and engagement from the organization's leaders felt more empowered, which made them more effective as they sought to solve their own problems.21

In general, a multi team system is the best choice either when a team has become too large to be effective, or when teams with distinct functions need to be highly coordinated.

multiteam system A collection of two or more interdependent teams that share a superordinate goal; a team of teams.

From Individual to Team Member To make sure Summerlunch+ starts off well on the first day of summer camp, Susan Wright

hires the university students a few weeks before lhe program begins. This lets the leaders and

I the students share in an orientation, have fun, and get on the same page.22 The high school students receive their orientation on lhe first day of the program, and are given clear directions

Chapter 6 Groups and Teamwork 205

about what needs to be done. The university students make sure that the high school students

are kept busy, so that they are not distracted by their phones.

While the meals are being prepared, everyone is expected to be focused on one another and

the job at hand. Clear instructions are given:

• Phones must be put away.

• Individuals can work with their best friend but only it both are working productively.

• Everyone must follow sate food handling practices.

• Everyone is expected to share the responsibility, and to give feedback at day's end to help

everyone figure out what could be done better next time.

During the first few weeks ot team building, Wright makes sure that everyone understands

their mission. The students know that they are making lives better tor young people in their community by ensuring they don't go hungry. "Charitable work is generally mission-driven and

I our students are all working tor minimum wage. We believe it helps them to understand the big picture of their work and the impact they are having within their own community." For e ilher a group or a learn to fu nction, individuals have to achieve some balance between lheir own needs and the needs of the group. When individuals come togelher lo form groups and teams, they bring with them their personalities and all their previous experiences. They also bring their tendencies to act in differenl ways at different limes, depending on the effeclS thal differenl situations and differenl people have on them.

One way lo th ink of these differences is in terms of possible pressures thal individual group members put on one another through roles, norms, and stalus expectalions, as OB in the Workplace indicales. As we consider the process of how individuals lean1 lo work in

FOCUS ~~HICS Virtual Teams Leave a Smaller Carbon Footprint

Should vi rtual teams be used even more? Despite being in different countries, or even

on d ifferent continents, many teams in geographically d ispersed locations are able to

communicate effectively without meeting face to face, thanks to technology such as videoconferencing, instant messaging, and email.18 In fact, members of some of these

virtual teams may never meet each other in person. Although the merits ot face-to-face vs.

electronic communication have been debated, there may be a strong ethical argument for virtual teams. Keeping team members where they are, as opposed to having them travel

every time they need to meet, may be a more environmentally responsible choice. A very

large proportion of airline, rail, and car transport is for business purposes and contributes greatly to global carbon dioxide emissions. When teams are able to meet virtually rather

than face to face, they dramatically reduce their carbon footprint.

Here are several ways that virtual teams can be harnessed for greater sustainability:

1. Encourage all team members to think about whether a face-to-face meeting is really

necessary and to try to use alternative communication methods whenever possible.

2. Communicate as much information as possible through virtual means, including email, telephone calls, and videoconferencing.

3. When travelling to team meetings, choose the most environmentally responsib le meth- ods possible. Also, check the environmental profile of hotels before booking rooms.

4. If the environmental savings are not enough motivation to reduce travel, consider the

financial savings. According to a recent survey, businesses spend about 8 to 12 per- cent of their entire budget on travel. Communicating electronically can therefore result

, in two benefits: (a) It's cheaper and (b) it's good for the environment. •..............•

206 Part 2 Striving for Performance

8 Show how role require· ments change in differ- ent situations.

role A set of expected behaviours of a person in a given position in a social unij_

role expectations How others believe a person should act in a given situation.

role conflict A situation in which an individual finds that complying with one role requirement may make it ITlOfe difficult to comply with another.

groups and teams, we will use the terms interchangeably. Many of the processes that each go through are the same, with the major d ifference being that teams with in the workplace are often set up on a nonpermanenl basis in order to accomplish projects.

Turn ing Around a Losing Team

Can one star performer make a team successful? The Winnipeg Blue Bombers won 3 games in 2013 and 9 of36 from 2012 lo 2013.23 By early August 2014, though, fans thought maybe the team had turned its fate around, wi th a 5 to 1 winning record on August 6, the best in the West Divis ion.

The Bombers hired quarterback Drew Willy before the 2014 season started, and he received some of the credit for making a difference, earning t,vo CFL Offensive Player of the Week lilies playing for the Bombers. With the early winning streak, head coach Mike O'Shea praised Willy for his leadership and his confidence. "He knows he can do il .. . his belief in himself, his knowledge that he can get the job done spills over to his teammates. They recognize that he believes they are going to get it done.•

Willy's skills and leadership were nol enough to lead the Bombers lo a winning season, however. The team won just one more game after August 6, losing 12 during the season. Despite the dismal record, sportswri ter Gary Lawless no ted that "Willy is the future in Winnipeg and this off-season will all be about giving him what he needs to succeed." The general view was that Willy had done all that he could do, but he needed a better team. O'Shea noted, as the team was headed in to the last game of the season, that even with a losing record, team members were s till expected to give their all in the final game. "They need to come and play .. .. If we've got the right group of guys who love to play football, then this is another opportunity for them lo do what they Jove lo do." ... . .. . . . ...... .

Roles Shakespeare said, "All the world's a stage, and all the men and women merely players.• Using the same metaphor, all group members are actors, each playing a ro le, a set of expected behaviour pauerns of a person in a given position in a social unit. We are required to play a number of diverse roles, both on and off our jobs.

As we will see, one of the tasks in understanding behaviour is grasping the role that a person is currently playing. For example, on the job a person might have the roles of electri- cal engineer, member of middle management, and primary company spokesperson in the community. Off the job, there are still more roles: spouse, parent, church member, food bank volunteer, and coach of the softball team. Many of these roles are compatible; some create conflicL~. For instance, how does one's rel igious involvement influence managerial decisions regarding meeting with clients on the Sabbath 1 We address role conflict below.

Role Conflict Most roles are governed by role expectations, that is, how others believe a person should act in a given situation. For instance, there are certain expectations about how a manager should act while al work. However, if the manager is also a parent, and that manager's chi ld woke up sick in the morning, the manager may be confronted by conflicting role expectations: go to work or remain with the sick child. This di lemma is role conflict. Role conflict arises when an individual finds that complying with one role requirement may make il more difficult lo comply with another.24 At the extreme, il can include si tuations in which two or more role expectations are mutually contradic- tory! A great deal of research demonstrates that work- fami ly conflict is one of the most s ignificant sources of stress for most employees.25

Chapter 6 Groups and Teamwork 207

Wilhin organizalions, mosl employees are simultaneously in occupalions, work groups, divis ions, and demographic groups, and Lhese idenlilies can conflicl when lhe expectations of one clash wi th lhe expectations of anolher.26 During mergers and acquisitions, employees can be torn between lheir identilies as members of lheir origi- nal organization and of lhe new parent company.27 Multinalional organizations also have been shown to lead lo dual identificalion, wilh lhe local division and wilh lhe in ternational organization.28

Role Ambiguity Role ambiguity exists when a person is unclear about lhe expectalions of his or her role. In teams, role ambiguity can lead to confusion, slress, and even bad feelings. For instance, suppose two group members each lh ink that lhe olher one is responsible for preparing lhe first draft of a report. Al lhe next group meeting, neilher brings a draft report, and bolh are annoyed lhat the olher person did not do lhe work.

Groups benefil when individuals know lheir roles. Roles wilhin groups and teams should be balanced. Edgar Schein, professor emeritus of the MIT Sloan School of Management, suggests lhat role overload occurs when what is expected of a person "far exceeds what he or she is able to do."29 Role underload occurs when too little is expected of someone, and lhat person feels lhat he or she is not conlribuling lo lhe group.

Norms Have you ever noticed lhal golfers don' t speak while lheir parlners are putting? Why? The answer is •norms"!

Norms are acceptable standards of behaviour shared by group members lhat express what lhey ought and ought not to do under certain circumstances. H's not enough for group leaders to share lheir opinions- even if members adopt lhe leaders' views, lhe effect may last only lhree days!30 When agreed lo by lhe group, norms influence behav- iour wilh a minimum of external conuols. Different groups, communities, and socielies have different norms, but lhey all have lhem.31

A study of 23 National Basketball Association teams found that "shared experience• -tenure on the team and time on court-tended to improve turnover and boost win-loss performance significantly. Why do you think teams that stay together longer tend to play better?

C, Demonstrate how norms exert influence on an individual's behaviour.

role ambiguity A persoo is unclear about his or her role.

role overload Too much is expected of someone.

role underload Too little is expected of someone, and !hat person feels that he or she is not contributing to the group.

norms Acceptable standards of behaviour wilhin a group !hat are shared by lhe group's members.

208 Part 2 Striving for Performance

~ OB ~cr10N Creating a Team Charter

Formalized norms are written up in organizational manu- als that set out ru les and procedures for employees to follow. But, by far, most norms in organizations are informal. You don't need someone to tell you that throwing paper airplanes or engaging in prolonged gossip sessions at the water cooler is an unacceptable behaviour when the "big boss from Toronto" is touring the office. Similarly, we all know that when we are in an employment interview discussing what we did not like about our previous job, there are certain things we should not talk about (such as difficulty in getting along with co-workers or our manager). There are other th ings it's appropria te to talk about (inadequate opportunities for advancement, or unimportan t and meaningless work).

When you form a new team, you may want to develop a team charter, so that everyone agrees on the basic norms for group performance. Con- sider including answers to the following in your charter:

-+ What are team members' names and contact information ( e.g., phone, email)7

-+ How will communication among team members take place ( e.g., phone, email)7

-+ What will the team ground rules be ( e.g., where and when to meet, auendance expecta- tions, workload expectations)?

-+ How will decisions be made ( e.g., consensus, majority vote, leader rules)?

-+ What poten tial conflicts may arise in the team? Among team members?

-+ How will conflicts be resolved by the group?33

Norms can cover virtually any aspect of group behaviour.32

Some of the most common norms have to do with issues such as

• Performance. How hard to work, the level of output, wha t kind of quality, levels of tardiness

• Appearance. Dress codes, when to look busy, when to "goof off,• how to show loyalty

• Social arrangenient. With whom Lo eat lunch, whether Lo form friendships on and off the job

• Allocation of resources. Pay, assignments, allocation of tools and equipment

OB in Action- Creating a Team Charter presents a way for teams to develop norms when the team first forms.

The "How" and "Why" of Norms How do norms develop? Why are they enforced? A review of the research allows us to answer these questions. 34

Norms typically develop gradually as group members learn what behaviours are necessary for the team to function effectively. Of course, critical events in the group might short-circuit the process and quickly prompt new norms. Most norms develop in one or more of the following four ways:

• Explicit statenients made by a graup member. Often, instructions from the group's supervisor or a powerful member establish norms. The team leader might spe- cifically say that no personal phone calls are allowed during working hours or tha t coffee breaks must be no longer than 10 minutes.

• Critical events in the group's histary. These set important precedents. A bystander is injured while standing too close to a machine and, from that point on, members of the work group regularly monitor one another to ensure that no one other than the operator gets with in two metres of any machine.

• Primacy. The first behavioural pauern that emerges in a group frequently sets team expectations. Groups of students who are friends often choose seats near one another on the first day of class and become upset if an outsider takes "their" seats in a later class.

• Carry-over behaviour.s fron1 past situations. Group members bring expectations with them from other groups to which they have belonged. Thus, work groups typically prefer to add new members who are similar to current ones in back- ground and experience. This is likely to increase the probabi lity that the expec- tations they bring are consistent with those already held by the group.

Chapter 6 Groups and Teamwork 209

Groups don' t establish or enforce norms for every conceivable situation, however. The norms that the groups will enforce tend to be those that are important to them. 35

What makes a norm important?

• It facilitates the group's survival. Groups don't like to fail, so they seek to enforce any norm that increases their chances for success. This means that groups try to protect themselves from interference from other groups or individuals.

• It increases the predictability of group niember.s' behaviours. Norms that increase predictabil ity enable group members to anticipate one another's actions and to prepare appropriate responses.

• It reduces embarrassing interper.sonal problems for group members. Norms are important if they ensure the satisfaction of their members and prevent as much interpersonal discomfort as possible.

• It allows niember.s to express the central values of the group and clarify what is distinctive about the group's identity. Norms that encourage expression of the group's values and distinctive identity help solidify and mainta in the group.

Conformity As a group member, you desire acceptance by the group. Thus, you are susceptible to conforming lo the group's norms. Considerable evidence shows tha t the group can place

s trong pressures on ind ividual members to change their attitudes and behaviours to conform to the group's standard.36 There are numerous reasons for conformity, with recent research highl ighting the importance of a des ire lo form accurate perceptions of reality based on group consensus, to develop meaningful social relationships with others, and to maintain a favourable self-concept.

The impact that group pressures for conformity can have on an individual member's

judgment and a ttitudes was demonstrated in studies by psychologist Solomon Asch.37

Asch found that subjects gave answers that they knew were wrong, but that were consis- tent with the replies of other group members, about 35 percent of the time. The results

suggest that group norms can pressure us toward conformity. We desire to be one of the group and avoid being visibly different.

Research by University of British Columbia professor Sandra Robinson and col- league Anne O'Leary-Kelly indicates that conformity may explain why some work groups are more prone to antisocial behaviour than o thers. 38 Ind ividuals working with others who exhibited antisocial behaviour al work were more likely to engage in antisocial behaviour themselves. Of course, not all conformity leads to negative behav- iour. Other research has indicated that work groups can have more posi tive influences,

leading to more prosocial behaviour in the workplace.39

Overall, research continues to indicate tha t conformity to norms is a powerful force in groups and teams.

Positive Norms and Group Outcomes One goal of every organization with corpora te social responsibility {CSR) in itiatives is for its values to hold normative sway over employees. After all, if employees al igned their thinking with positive norms, these norms would become stronger and the

probability of posi tive impact would grow exponentially. We might expect the same outcomes from pol itical correctness {PC) norms. But what is the effect of s trong posi- tive norms on group outcomes? The popular thinking is that to increase creativity in groups, for instance, norms should be loosened. However, research on gender-diverse groups indicates that strong PC norms increase group creativity. Why? Clear expecta-

tions about male-female interactions reduce uncertainty about group expectations,40

conformity Adjusting ooe's behaviour to align with the nDfms of the group.

21 O Part 2 Striving for Performance

deviant workplace behaviour Volun1ary behaviour that violates significant organiza!iooal n0<ms and, in so doing, threatens 1he well-being of the organization Of ~s members. Also called anljsocial behavioor Of workplace incivility.

which allows the members to more easily express their crealive ideas withoul combat- ling stereotype norms.

Positive group norms may well begel positive oulcomes, but only if other faclors are present, too. For instance, in a recenl sludy, a high level of group exlraversion predicled help ing behaviours more slrongly when lhere were posilive cooperation norms.41

As powerful as norms can be, though, not everyone is equally susceplible lo posilive group norms. Individual personalities faclor in, too, as well as lhe level of a person's social identity with the group. Also, a recenl sludy in Germany indicated thal the more salisfied people were with their groups, the more closely they followed group norms.42

Negative Norms and Group Outcomes Malthew is fruslraled by a co-worker who constantly spreads malicious and unsubslan- liated rumours aboul him. Aisha is lired of a member of her work group who, when confronted with a problem, Lakes oul his frustration by yelling and screaming al her and other members. Mi-Cha recenlly quit her job as a denlal hygienisl after being sexually harassed by her employer.

Whal do these illuslrations have in common? They represenl employees exposed lo acts of devianl workplace behaviour.43 As we discussed in Chapler 3, counterproductive work behaviour (CWB) or deviant workplace behaviour (also called antisocial behav- iour or workplace in.civility) is voluntary behaviour thal violates significant organizational norms and, in so doing, threalens lhe well-being of the organization or ils members.

Exhibil 6-2 provides a typology of deviant workplace behaviours, with examples of each. Few organizations will admit lo crealing or condoning conditions lhal encourage

and maintain deviant behaviours. Yet they exist. For one, as we discussed before, a work group can become characlerized by positive or negative altribules. When those atlribules are nega tive, such as when a work group is high in psychopathy and aggression, lhe characteristics of deceit, amorality, and inlenl to harm others are pronounced.44 Second, employees have been reporting an increase in rudeness and disregard loward others by bosses and co-workers in recenl years. Workplace incivility, like many other devianl behaviours, has many negative outcomes for lhe victims.45 Nearly half of employees who have suffered th is incivility say il has led them to think about changing jobs; 12 percent actually quil because of it.46 Also, a sludy of nearly 1500 respondenlS found thal in addilion to increasing lurnover inlenlions, incivi lity al work increased reporlS of psychological slress and physical illness.47 Third, research suggests that a lack of sleep,

EXHIBIT 6-2 Typology of Deviant Workplace Behaviour

more flexible solutions.

0 ICll:I

"' -

338 Part 3 Interacting Effectively

-"' CCI 0

PRO SPORTS STRIKES ARE CAUSED BY GREEDY OWNERS

POI NT - It can be annoying to see the constant strikes, lockouts,

and back-and-forth negotiations between sports teams

and the players' unions. ,os Of the major pro sports leagues, Major League Baseball (MLB) is the only one without a strike since 1995-and it had eight in its his-

tory. You've got to wonder why this keeps happening.

Here is why: Owners' greed knows no limit.

In nearly every recent strike or lockout, the main issue

was money and how to divide it. When the National

Hockey League (NHL) locked out the players during the 2012-2013 season, the owners were the instigators.

They wanted to reduce the players' share of hockey

revenues. They wanted to eliminate salary arbitration.

They wanted to introduce term limits to contracts. They

wanted to change free-agency rules and eliminate sign- ing bonuses. On a philosophical level, some of these

proposals are interesting because they reveal that own-

ers want to restrict competition when it suits them and

increase it when it benefits them.

While the owners were whining about the unfairness

of long-term contracts, the Minnesota Wild's owner Craig Leipold signed Zach Parise and Ryan Suter to identical

13-year, $98 million contracts. Contracts like these sug -

gest that owners want the players' union to save them

from themselves.

Perhaps some of this behaviour would make sense if the owners were losing money, but that is hardly the case. The NHL has three teams worth over $1 billion

each, and few are worth less than $200 million. The

owners are not hurting, either. Most are millionaires many

times over. N. Murray Edwards, co-owner of the Calgary

Rames, had a net worth of $1.88 billion in 2017 and was ranked 23 of the 1 00 wealthiest Canadians.

In essence, what we have are rich owners trying to

negotiate rules that keep them from competing with

one another for players. It's a bald-faced and hypocriti-

cal attempt to use their own kind of union to negotiate favourable agreements, all the while criticizing the play-

ers' unions.

COUNTERPOINT - - Major league owners are an easy target. But they have

the most to lose from work stoppages. It's the players

and their unions who push the envelope.

It's true that most major league players are well rewarded for their exceptional talents and the risks they

take. It's also true that owners who are able to invest in

teams are wealthy-investors usually are. But the fault

for disputes lies with spoiled players-and the union

leaders who burnish their credentials and garner the

limelight by fanning the flames of discontent. On this latter point, give all the credit in the world to

the union negotiators (paid millions themselves), who do

nothing if not hawk publicity and use hardball negotiating

tactics. Take the NHL players' union boss Donald Fehr.

For a "negotiation" set to begin at 10 a.m., he arrived at 11 :15. At exactly 12:00, he announced he had a lunch

meeting uptown and left.

Do we really need labour unions for workers whose

average salaries for first team players in 2016-2017 are

$2.9 million (NHL), $4.4 million (MLB), and $6.4 million

(NBA)? NHL clubs spent 76 percent of their gross rev- enues on players' salaries and collectively lost $273 mil-

lion the year before the most recent lockout. It's easy to

argue that major league sports have an unusual number

of labour disputes, but that is not necessarily accurate.

Did you hear about the 2015 largest strike of oil refinery

workers in decades or the ongoing worldwide strikes by low-paid workers in the fast-food industry? Somehow

these strikes don't make the news or our collective con-

sciousness as much as sports strikes. Sports strikes

interest us, but we should not fall into the trap of blaming

these on the owners.

340 Part 3 Interacting Effectively

The negotiation: Alex has a meeting scheduled with C.J. to discuss Lisa's performance review and salary adjustment. -: Take a couple of minutes to think through the facts in this exercise and to prepare a strategy. Then you have up to

~ 15 minutes to conduct your negotiation. When your negotiation is complete, the class will compare the various strategies -"' used and the outcomes that resulted. CCI 0

ETHICAL DILEMMA

The Lowball Applicant Consider this first -person account:

I am a human resources manager, so I interview people

every day. Sometimes the managers in my company ask

me to pre-screen candidates, which I do after discuss-

ing the job at length with the manager. I usually start the

candidate screening with a few personality- job fit tests;

then conduct an interview, following a list of job-specific

questions the manager has given me; and finally discuss

the job requirements, our company, and the pay/benefits.

By that time in the process, the candidate usually has a

good idea of the job and is eager to suggest a level of pay

at the top of the advertised bracket or, often, above the

pay bracket. However, this isn't always the case.

One time in particular, an excellent candidate with

outstanding qualifications surprised me by saying that

since she wanted flextime, she would accept a rate be·

low the pay bracket. Confused, I asked her whether she

wanted a reduction in hours below full time. She said no,

she expected to work full time and only wanted to come

in a little late and would leave a little late to make up the

time. I guess she figured this was a concession worth

slashing her salary for, but our company has flextime. In

fact, she could have asked for five fewer hours per week,

still have been considered full time by our company

policies, and negotiated for salary above the adVertised

pay grade.

I knew the manager would be highly interested in this

candidate and that he could probably get her to work the

longer full-time hours at a lower rate of pay. That out-

come might be best for the company, or it might not. The

candidate obviously didn't fully understand the company

policies in her favour, and she was unsophisticated about

her worth in the marketplace. What should I have done?

Quest.ions

1. If the human resources manager were to coach the applicant to request a higher salary, would the coach· ing work against the interests of the organization? Is it the responsibility of the human resources manager to put the organization's financial interests first?

2. What do you see as the potential downside of the human resources manager abstaining from discuss- ing the pay issue further with the candidate?

3. If the candidate were hired at the reduced rate she proposed, how might the situation play out over the next year when she gets to know the organization and its pay standards better?

CASE INCID ENT S

Disorderly Conduct The sound of Matt and Peter's arguing is familiar to every-

one in the office by now. ,os In an effort to make the best use of space and ensure a free flow of discussion and

ideas, the founder of Markay Design had decided to con-

vert the one-floor office of the company to an open plan with no walls between workers. The goal of such a layout

is to eliminate boundaries and enhance c reativity. But for

Matt and Peter, the new arrangement creates a growing

sense of tension.

The argument boils down to the question of work·

space order and organization. Peter prefers to keep his desk completely clean and c lear, and he keeps a stack of

cleaning wipes in a drawer to eliminate any dust or dirt. Matt, on the other hand, likes to keep all his work visible

on his desk, so sketches, plans, magazines, and photos

are scattered everywhere, alongside boxes of crackers

and coffee cups. Peter finds it hard to concentrate when

he sees Matt's piles of materials everywhere, while Matt

feels he can be more creative and free flowing when he is not forced to clean and organize constantly. Many of

Matt and Peter's co-workers wish they would just let the

issue drop. The men enjoyed a good working relationship

in the past, with Peter's attention to detail and thorough

planning serving to rein in some of Matt's wild inspira- tions. But of late, their collaborations have been derailed

in disputes.

Everyone knows it 's not productive to engage in con-

flicts over every small irritant in the workplace. However,

completely avoiding conflict can be equally negative.

An emerging body of research has examined •conflict

cultures" in organizations. The findings suggest having

a culture that actively avoids and suppresses conflicts is

associated with lower levels of c reativity. Moreover, cul-

tures that push conflict underground but do not succeed

Chapter 9 Conflict and Negotiation 341

in reducing the underlying tensions can become passive-

aggressive, marked by underhanded behaviour against

other co-workers.

Ultimately, finding a way through the clutter dispute is

probably going to be an ongoing process to find a balance

between perspectives. Both Matt and Peter worry that

if they cannot find a solut ion, their usually positive work

relationship will be too contentious to bear, and that would

be a real mess.

Questions

1. Describe some of the factors that led this situation to become an open conflict.

2. Do you think this is an issue worth generating con- flict over? What are the potential costs and benefits of Matt and Peter having an open discussion of the

issues?

3. How can Matt and Peter develop an active problem- solving discussion to resolve this conflict? What could effectively be changed, and what is probably going to just remain a problem?

The Pros and Cons of Collective Bargaining Fewer employees in the private sector are unionized,

compared with those who work in the public sector (15.2

vs. 71.3 percent in 2014).107 Does being in a labour union

make a difference for optimal wages and benefits?

On the positive side, by negotiating as a collective,

public-sector employees, who are more heavily unionized,

are able to earn, on average, roughly 12 percent more

than employees working in the mostly non-unionized pri-

vate sector. Unions also can protect the rights of workers

against capric ious actions by employers. Consider the

following example:

In a non-unionized workplace, Lydia criticized the

work of five of her co-workers. They were not

amused and posted angry messages on a Face-

book page. Lydia complained to her supervisor

that the postings violated the employer's "zero tol-

erance" policy against "bullying and harassment."

The employer investigated and, agreeing that its

policy had been violated, fired the five.

Most of us would probably prefer not to be fired for

Facebook posts. This is a protection unions can provide.

On the negative side, public -sector unions at times

have been able to negotiate employment arrangements

that are hard to sustain. According to the Fraser Institute,

almost 89.3 percent of those employed by the Canadian

government receive pension benefits as part of their

total compensation. Only 23.8 percent of private-sector

employees have these benefits. This allowed government

employees to retire about 2.3 years earlier than private-

sector employees.

Further, it 's often more difficult to fire a member of a

public-sector union, even if performance is exceptionally

poor. A recent report by the Fraser Institute indicated that

3.8 percent of private-sector employees were fired com-

pared to 0.6 percent of public -sector employees.

Reasonable people can disagree about the pros and

cons of unions and whether they help or hinder an orga-

nization's ability to be successful. There is no dispute,

however, that they often figure prominently in the study of

workplace conflict and negotiation strategies.

Questions

1. Labour-management negotiations might be charac- terized as more distributive than integrative. Do you agree? Why do you think this is the case? What, if anything, would you do about it?

342 Part 3 Interacting Effectively

-"' CCI 0

2. If unions have negotiated unreasonable agreements, what responsibility does management or the admin- istration bear for agreeing to these terms? Why do you think they do agree?

3. If you were advising union and management repre- sentatives about how to negotiate an agreement, drawing from the concepts in this chapter, what would you tell them?

Negotiating Once you have taken the time to assess your own goals, con-

sider the other party's goals and

interests, and develop a strategy,

you are ready to begin actual

negotiations.

•••••••••••••••••••••

Practising Skills

The following five suggestions should improve your negotiating skills: 108

1. Begin with a positive overture. Studies on negotiation show that con- cessions tend to be reciprocated and lead to agreements. As a result, begin bargaining with a positive overture- perhaps a small conces- sion- and then reciprocate your opponent's concessions.

2. Address problems, not personalities. Concentrate on the negotiation issues, not on the personal characteristics of your opponent. When negotiations get tough, avoid the tendency to attack your opponent. It's your opponent's ideas or position that you disagree with, not him or her personally. Separate the people from the problem, and don't personalize differences.

3. Pay little attention to initial offers. Treat an initial offer as merely a point of departure. Everyone has to have an initial position. These initial offers tend to be extreme and idealistic. Treat them as such.

4. Emphasize win- win solutions. Inexperienced negotiators often assume that their gain must come at the expense of the other party. As noted with integrative bargaining, that need not be the case. There are often win- w in solutions. Assuming a zero -sum game means missed opportunities for trade-offs that could benefit both sides. So if conditions are supportive, look for an integrative solu- tion. Frame options in terms of your opponent 's interests, and look for solutions that can allow your opponent, as well as yourself, to declare a victory.

5. Create an open and trusting climate. Skilled negotiators are better listeners, ask more questions, focus their arguments more directly, are less defensive, and have learned to avoid words and phrases that can irritate an opponent (for example, "generous offer," "fair price," "reasonable arrangement"). In other words, they are better at creating the open and trusting climate necessary for reaching an integrative settlement.

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

As marketing director for Done Right , a regional home-repair chain, you

have come up with a plan you believe has significant potential for future

sales. Your plan involves a customer information service designed to help

people make their homes more environmentally sensitive. Then, based on

homeowners' assessments of their homes' environmental impact, your

firm will be prepared to help them deal with problems or concerns they

may uncover. You are really excited about the competitive potential of

this new service. You envision pamphlets, in-store appearances by envi-

ronmental experts, as well as contests for consumers and school kids.

After several weeks of preparations, you make your pitch to your boss,

Nick Castro. You point out how the market for environmentally sensitive

products is growing and how this growing demand represents the perfect

opportunity for Done Right. Nick seems impressed by your presentation,

but he has expressed one major concern: He thinks your workload is

already too heavy. He does not see how you are going to have enough

time to start this new service and still be able to look after all of your other

assigned marketing duties. You really want to start the new service. What

strategy will you follow in your negotiation with Nick?

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

1. Negotiate with a team member or work colleague to handle a small section of work that you are not going to be able to get done in time for an important deadline.

2. The next time you purchase a relatively expensive item (such as an automobile, apartment lease, appliance, jewellery), attempt to negoti- ate a better price and gain some concessions such as an extended warranty, smaller down payment, maintenance services, or the like.

Chapter 9 Conflict and Negotiation 3 43

Reinforcing Skills

• ••••••

344

LI.I ::c .... z Q

Certain Vancouver School Board (VSB) trustees (Allen Wong, Joy Alexander, Mike Lombardi, and Patti Bacchus, shown above) and the VSB staff were at loggerheads for most of 2016.1 The trustees were trying to stand up to the provincial government, which had ordered the VSB to produce a balanced bud- get by June 30, 2016. The board resisted doing this for months after the deadline, in part because producing a balanced budget would require more than $7 million in cuts and 12 school closures. School closures are always a difficult issue; parents do not want their child's school closed. Because the trustees are elected, they are more

interested in what constitu- ents want than what the pro- vincial government wants.

It is the job of the VSB staff to recommend to the trust- ees how to make the cuts and which schools to close. The staff prepared recommendations on these matters for the trustees. Throughout 2016, while staff prepared recommendations, tensions between the staff and trustees escalated. Staff started to fear for their jobs. The tipping point came at a September 2016 public meeting where citizens could watch trustees question the staff. The meeting became heated.

WorkSafeBC was alerted to tensions between staff and trustees, and an investigation into alleged bullying behaviour

VISION Vl:>ro,,, ___ _ Vi! " , r

began, with a report issued in March 2017. Among the con- clusions of the report were:

• Many witnesses described a "culture of fear" in which staff felt vulnerable and at risk of personal attack and ridicule.

• There was evidence that the trustees' public attack of the work of the senior staff undermined the staff and publicly embarrassed and humiliated them.

• Individual trustees acted contrary to the VSB Code of Ethics and engaged in conduct that constituted bullying and harassment.

Because the trustees had been fired by the provincial government months before the report was issued, no disciplin-

ary action was taken; however the VSB has since put together guide- lines against bullying for trustees and staff. Workplaces in many parts of Canada are required to address bullying. Bullying itself is not illegal, but some forms of it - for example, threats, assault, and harassment- are included in the Criminal Code.

\Vhat Is Happening in Our \Vorkplaces? Workplaces today receive high ly critical reviews, being called every- th ing from ' uncivil" to "toxic.• The

trend has been growing over time. One study showed that one-quarter of those surveyed in 1998 reported rude treatment at work at least once a week. In 2005, nearly half reported experiencing that behaviour, wh ile in 2011 just over half reported the same.

People are feeling more stressed at work, often as the result of heavier

wo rkloads due to layoffs of fellow employees, pressures for increased

product ivity, and managers who do not know how to manage. Al l of th is has resulted in an increase in uncivil and aggressive workplace behaviours.2

What does workplace civility mean? Essentially it means acting politely and respectfully toward others.3 Worllplace incivilit)' means being disrespectful and uncaring about how one treats oth- ers. Different workplaces have different norms for what demonstrates mutual respect; however, many provinces now

require organ izations to develop poli- cies regard ing workplace bullying and respectful workplace practices.

Some behaviour goes beyond incivil ity to workplace bu llying. The Workplace Bullying Insti tute defines workplace bullying as

repeated, health-harming mis-

treatment of one or more persons (the targets) by one or more per-

petrators. It ,s abusive conduct

that is:

• Threa ten ing, humil iating, or intimidating

• Work interference -sabotage- which preven ts wo rk from get- ting done

• Verbal abuse4

What Do We Know about Workplace Bullying?

There are few statistics on workplace bullying in Canada. The Workp lace Bullying Insti tute conducts the larg- est scien tific study of bullying in the United States, and a recent study of

1000 adults found the following:5

• The percentage of respondent~ who have suffered abus ive conduct at work is 27 percen t.

• The percentage of respondent~ who have witnessed abusive conduct at

work is 21 percent.

• A full 72 percent of respondents are aware tha t workplace bullying happens.

• Men are significantly more likely to engage in bullying behaviour than women ( 69 percent vs. 31 percent).

• Women who bully are sign ificantly more likely to bully women rather than men (68 percent vs. 32 percent).

• Men who bully are more likely to target women rather than men (57 percent vs. 43 percent) .

• Overall, 60 percent of bullying tar- gets are women.

The evidence suggests that rudeness, bullying, and violence are all on the rise. The behaviours are harmful in the workplace.7 The victims of these nega- t ive behaviours are not the only ones who suffer, however. Witnesses to bul-

lying also suffer.8

Not all nega tive behaviour in the workplace is bullying. Yes, bullying is a workplace issue. However, it's some-

times hard to know if bullying is hap- pening at the workplace. Many studies

••• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

• •••••••••••••••

FACTBOX What happens when employees

experience rudeness in the work-

place?

• 48o/o decreased their work effort,

• 47% decreased their time at work,

• 38% decreased their work quafrty,

• 66% said their performance

declined,

• 80% lost work time worrying

about the incident,

• 63% lost time avoiding the

offender, and

• 78% said their commitment to the organization declined .6

..... --· ....... --·~-----.-. acknowledge that there is a "fine line"

between strong management and bul- lying. Comments that are objective and are intended to provide constructive feedback are no t usually cons idered bullying, but rather are intended to assist the employee with their work.

WorkSafeBC clarifies by noting that bullying and harass ing behaviour does not include the following behaviours, if approached in an appropriate manner:9

• Expressing differences of opin ion

• Offe ring construct ive feedback, gu idance, or advice about work-

related behaviour

• Taking reasonable action related to the managemen t and d irection of workers or the place of employment (e.g., an employer or supervisor managing a worker's performance, tak ing reasonable discipl inary actions, assigning work)

Workplace Violence

Recently, researchers have suggested that incivility may be the beginning of more negative behaviours in the workplace, includ ing aggression and violence. 10

345

Kevin Douglas Add ison chose a deadly way to exhibit the anger he felt toward his former employer. In April 2014, he took a shotgun and opened fire at his former place of employment, the Western Forest Products mi ll in Nanaimo, British Columbia, killing two employees (one of them a foreman) and injuring two others. The mill had closed in 2008 and had re-opened in a smaller capacity in 2010. Co-workers speculated that financial problems as well as not being rehired when the mill re-opened may have Jed Addison to engage in the shooting. Roy Robertson, a retired mill employee, called Addison •an absolutely super nice guy. But me, you, anyone else can crack under pres- sure. I don't know his situation.' 11

Workplace vio lence, acco rding to the International Labour Organization (ILO), includes

any incident in wh ich a person is abused, threatened or a~saulted in circumstances relating to their work. These behaviours would originate from customers or co- workers at any level of the orga- nization. This definition would include all forms of harassment, bullying, intimidation, physical th reats, assaults, robbery and other intrus ive behaviour. 12

The numbers on wo rkplace abuse vary by occupation. Overall, in a 2016 study by Vector Poll, JS percen t o f Canadian employees reported experi- encing workplace abuse, hara~sment, or assault during the previou~ 24 months. 13

In a 2016 Canadian Federation of Nurse Unions (CFNU) study, 61 percent of nurses reported experiencing those same behaviours in the previous 12 months. 14

A 2017 report from the Ontario English Cathol ic Teachers' Association found that ·60 percent o f (those] teachers have personally experienced violence in schools, while 70 percent have wit- nessed iL'15

Glenn French, president and founder of the Toronto-based Canadian Initiative on Workplace Violence, acknowledges

346

that there is less gun violence in the workplace here than in the United States: ·vie do it the Canadian way: we don't kill you, we'll just make your life a living hell by harassing and intimidat- ing you on the job. The face of violence in Canada tends to be far more indirect than what we've seen (in the Western Forest Products mill in Nanaimo] .• 16

Sandra Rob inson and Jennife r Berdahl, both professors at the Sauder School of Business at the University of British Columbia, have recen tly been looking at the effects of being ignored ( ostracized) in the workplace. Thei r research found that while people tend to th ink that ostracism is Jess offensive than harassment, the people who are ostracized seem to suffer greater effects. •The experience of ostracism has a b igger impact on job d issatisfaction, on psychological well-being, on self- reported physical health, on intentions to quit the company,' Robinson said. 17

The study found that ostracism was quite widespread: 71 percent of employ- ees reported being ostracized in the pre- vious six months, compared with 48 percent who reported being bullied. 18

Those who are ostracized are more l ikely to quit the ir jobs wi thin three years than those who have been bul- lied. Robinson concluded that because ostracism is less visible, it's harder to fighL ·victims of ostracism really feel they can't do anything about it. It's very difficult to call-out the absence of behaviour. A lot of people end up quitting for their own well-being."19

What Causes Incivility (and Worse) in the Workplace? If employers and employees are act- ing with less civil ity toward each other, what is causing this to happen?

Managers and employees often have differen t views of the employee's role

in the organization. Jeffrey Pfeffer, a professor of organizational behaviour at the Graduate School of Business at Stanford Un iversity, notes that many companies don't really value their employees: •Most managers, if they're being honest with themselves, will admit it: When they look at their people, they see costs, they see salaries, they see benefits, they see overhead. Very few companies look at their peo- ple and see assets:20

Most employees, however, like to think that they are assets to their orga- nization. The real ization that they are simply costs and not valued members of an organization can cause frustra- tion for employees.

In addi tion, •employers' excessive demands and top-down style of man- agement are contributing to the rise of 'work rage," claims Gerry Smith, author of Wor/1 Rnge.21 He cites demands com- ing from a variety of sources: • over- time, downsizing, rapid technological changes, company restructuring and difficulty balancing the demands of job and home."22 Smith worries about the consequences of these demands: •1f you push people too hard, set unreal- istic expecta tions and cut back the ir benefits, they're going to strike back.'23

Smith's work supports the findings of studies that repo rt that the most common cause of anger and bullying is the actions of supervisors or manag- ers.24 Other common causes of anger identified by the researchers include lack of productivity by co-workers and others, t ight deadl ines, heavy work- load, in teraction with the public, and bad treatment. The inset Do You Have a Bad Boss? describes some of the bad behaviour of bosses.

One s tudy found that how man- agers deal w ith d isplays of anger at work can do much to defuse tensions. Co-workers wan t to see the manager take some responsibil ity for a fellow employee's anger, rather than discipl in- ing the employee, if the manager or the working condi tions are the source of the anger. 25

Do You Have a Bad Boss?

You know You have a bad boss if he or she 26 • does not even want 10 be a b · ..

Some research on the psychologi- cal contract suggests that violations of implici t or explici t promises may not be necessary to affect employee inten- tions to s tay with the o rgan ization and/o r engage in cit izensh ip behav- iours. Professors Samantha Montes and David Zweig of the Rotman School of Management found that employees expect decent pay, deve lopmental opportunities, and support (whether or not employers promise to deliver such); and when th ey don' t receive those th ings, the ir behaviour toward the organization becomes negative.29

• ca . oss nnot admit mistakes • Spends too much time in the trenches • has unreasonable expectations

: exPects everyone to be like him or her fads to see employees as hum • . ans ,s unable to build a cohesive team

The Psychological Contract Some researchers have looked at this frustration in terms of a b reakdown of the psychological contract formed between employees and employers.

An employer and employee begin to develop psychological contracts as they are first introduced to each other in the h iring process. These contracts continue over time as th e employer and the employee come to understand each o ther's expecta tions abou t the

amounts and quality of work to be per- formed and the types of rewards to be given. For instance, when an employee is con tinually asked to work late and/ or be ava ilable at all hours through pagers and email, the employee may assume tha t do ing so will result in greater rewa rds or fas ter promotion down the line. The em ploye r may have had no such intention, and may even be th inking th at the employee should be grateful simply to have a job. Later, when the employee does not get expected (though never promised) rewards, he or she is disappoin ted.

Sandra Robinson, an organizational behaviour p rofessor at the Sauder School of Busines.~ at the University of British Columbia, and her colleagues

have found that when a psychologi- ca l contract is violated (perceptually or actually), the relationship between the em ployee and the employer is damaged. The result can be a Joss of t rust. 27 The breakdown in trust can cause employees to be less ready to accept decis ions or obey rules. The ero- sion of trust can also lead employees to take revenge on the employer. So they don't carry out thei r end of a task. Or they refuse to pass on messages. They engage in any number of subtle and not-so-subtle behaviours tha t affect the way work gets done-or prevents work from getting done. A recent study sugges ts th at perceptions of th e psy- chological contract vary by culture. 28

The Toxic Organization Pfeffer suggests that companies have become 'toxic places to work. •3o He notes that companies, particularly in Silicon Valley, ask their employees to sign contracts on the first day of work indicating the employee's understand- ing that the company has the right to fire at w ill and for any reason. Some employers also ask their employees to choose between having a life and hav- ing a career. Pfeffer relates a joke people used to tell about t\,licrosoft: "We offer flex ible t ime-you can work any 18 hours you want."31 This kind of attitude can be toxic to employees, although it does not imply that Microsoft is a toxic

HoW to Deal with a Toxic Boss

/ly lt's difficult but if you t,y d d 't take it persona . ' • EmpathiZe, an on r e it may help you cope more

to understand your boss's perspec iv '

effectively. . . . propriate or abusive, stand up for • [)raw a ffne. When behaviour is _,nap rth being harassed or abused.

point no ]Ob IS WO yourself. At some ' . . . If u take revenge, you become

• Don't sabotage or be v1nd1ct,ve. yo

part of the problem. fi d it useful to have notes at k oles You may n 32 • Be patient and ta e n . . tr ht on you.

. I hould the boss shine the spo ig your d1sposa s

3 4 7

employer. The inset How to Deal with a Toxic Boss gives tips, should you find yourself in that situation.

Wha t does it mean to be a toxic organization? The inset \,Vfrat Does a Toxic Organization Looll Like? describes one. The late professor Peter Frost of the Sauder School of Business at the Univers ity of Brit ish Columbia noted that there will always be pain in organizations, but that sometimes it becomes so intense or prolonged that conditions within th e organiza tion begin to break down. In other words, the situation becomes toxic. This is not dissim ilar to what the liver or kidneys do when toxins become too intense in a human body.33

Wha t causes organiza tions to be toxic? Like Pfeffer, Robinson and col- leagues identify a number of factors. Downsizing and organizational change are two main factors, particularly in recen t years. Sometimes organizations experience unexpected evenL~-such a~ the sudden death of a key manager, an unwise move by sen ior management, strong competition from a start-up company-that lead to toxicity. Other organ iza tions are toxic th roughout their system due to policies and prac- tices that create d istress. Such factors as unreasonable stretch goals or per- formance targets, or un relenting inter- nal competit ion, can crea te tox icity. There are also toxic managers who lead through insens itivity, vindictiveness, and fa ilure to take responsibility, o r they are control freak~ or are uneth ical.

What Are the Effects of Incivility andToxicity in the Workplace?

In gene ra l, researchers have foun d that the effects of workplace anger are sometimes subtle: a hostile work envi- ronment and the tendency to do only enough work to get by. 34

348

Those who feel chronic anger in the wo rkplace are more likely to report "feelings of betrayal by the organiza- t ion, decreased feelings of loyalty, a decreased sense that respondent values and the organization's values are simi- lar, a decrea~ed sense that the employer t reated the respondent with dign ity and respect, and a decreased sense that employers had fulfilled promises made to respondents. •35 So do these feel- ings make a difference? Apparently so. Researchers have found that those who felt angry wi th their employers were less likely to put forth their best effort, more likely to be competitive toward other employees, and less likely to sug- gest •a quicker and better way to do their job.' 36 All of these act ions tend to decrease the productivity possible in the workplace.

It's not just those who work for an organization who are affected by inci- vility and toxicity. Poor service, from ind ifference to rudeness to ou tright hosti lity, characterizes many transac- t ions in Canadian businesses. "Across the country, better business bureaus, provincia l government consumer- help agencies and media ombudsmen repo rt a lengthening l itany of com- plaints about contractors, car dealers,

•• • • • • • • • •

• ••• ••••••• ••••••

FACTBOX : The effects of incivility on the

workplace are high: • • • • • • • • • • • • • • • • • • • • • • • • • • •

• 80% of workers lost work time worrying about an offending

incident .

• 78o/o said their commitment to the organization declined.

• 66% reported their performance declined.

• 48% who had been on the receiving end of incivility intentionally decreased their work effort .

, • 47% intentionally decreased • • the time spent at work. • • • • • • • • •

• 80% of customers who witnessed rudeness among employees were unlikely to return to the business. 37

repa ir shops, moving companies, air- lines and departmen t sto res.' 38 Th is suggests that customers and cl ients may well be feeling the impact of inter- nal workplace dynamics.

What Does a ToxJc Organization Look Like? ToXJc organizations have the folfoWing cha . . • . . . ractenst,cs:39

inab1ilty to achieve OPeration goals and . • problem-sol · . commitments

ving Processes drrven b t . • POor internal communication Y ear with few good decisions

• huge amounts of waste that ~ rework esult from POor decisions, and lots of

• interpersonal relationships driven b . . agendas Y manipulative and self-centred

F A C E O F F

Manners are an over-romanticized

concept. The big issue is not that

employees need to be concerned

about their mamers. Rather, employers should be paying better wages.

The dynamics in t he wo rkplace may be starting to change. In 2016 the Faculty of tvledicine at UBC circulated a video to its instructors that illustrated issues of student mistreatment. Viewers were asked to ·avoid putting students on the spot w ith questions, to m ini- m ize 'cold and cl in ical' interactions, and to cultivate 'safe' learn ing environ- men ts for the young residents.• Such a video wou ld not have been made

JO years ago. But the cu rrent genera- tion of students is demanding more respect and it has less tolerance for being exposed to bullying behaviour. This may tum out to be a good th ing.4 0

Legislation to Prevent Bullying

The Canadian Cri minal Code has no bullying offence, although depend- ing on the ci rcumstance, other charges could be made, such as cr im inal harassment, uttering threa ts, assaul t, and sexual assault. On a p rov in-

cial level, only some provinces have adopted legisla tion d irected at bully- ing. O thers are still working out poten- tial approaches.4 1 But some aspects of bullying could be dealt wi th in some provinces through existing provincial vio lence and harassment legislation.

For instance, in 2012 WorkSafeBC

s tarted to accept mental d iso rder cla ims that we re the results of •a

cumulative series of sign ificant work- related stresso rs. • That was a major

The Golden Rule "Do unto others

as you would have others do unto

you," should still have a role in today's

workplace. Being nice pays off.

sh ift for the o rgan ization, which pro- motes workplace heal th and safety in Brit ish Columbia. Previously it had only processed cla ims for stress from t raumatic events. Between 2012 and 2014, WorkSafeBC accepted 655 men-

tal s tress claims and pa id ou t more than $ JO m ill ion in damages. While the majority of claims were for trau- matic incidents, about 30 percent were for workplace stress. 'Forty-five to 50

people are applying for benefits every week. That's an indica tion that there are problems in the workplace,· says

Jennifer Leyen, d irecto r of special care services for WorkSafeBC.42

WorkSafeBC requi res employers in the province to have a pol icy in place to prevent bullying and hara~smen t. It also reminds employers and employees what bullying includes: insults, sabo- tage, th reats. However, bullying does not include negative work evaluations, discipline, or firing. Some experts find tha t th is new po licy is not enough, howeve r. •1t overlooks o ther issues

like the damage caused by a constant thrum of low-level incivility-the eye roll ing, the interruptions, the d ismis- siveness ..... 43

RESEARCH EXERCISES

1. Look for data on violence and anger in the workplace in other countries. How do these data oompare with the Canadian and .American data pre-

sented here? What might you con- clude about how violence and anger ill the workplace are expressed in d~- ferent cultures?

2. Identify three Canadian organizations that are trying to foster better and/ or less toxic environments for their employees. Wllat kind of effect is this having on the organizations' bottom Ines?

YOUR PERSPECTIVE

1. Is tt reasonable to ru,;igest, as some researchers have, that you,g people today have not learned to be civi to others or do not place a high prior- ity on doing so? Do you see tlis as one of the causes of ilciviltty ill the workplace?

2. What should be done about manag- ers who create toxictty in the work· place while being rewarded because they achieve bottom~ine results? Should bottom-lile results justify their behaviour?

WANT TO KNOW MORE?

If you would like to read more on

this topic, see P. K. Jonason, S.

Slomski, and J. Partyka, "The Dark

Triad at Work: How Toxic Employees

Get Their Way,• Personality and Individual Differences , February

2012, pp . 449-453; 8 . Schyns and J . Schilling, "How Bad Are the Effects

of Bad Leaders? A Meta-Analysis

of Destructive Leadership and Its

Outcomes," The Leadership Quarterly, February 2013, pp. 138-158; and Canadian Centre for Occupational

Health and Safety, "Bul lying in the

Workplace,• www.ccohs.ca/oshan-

swers/psychosociaVbullying .html.

349

350

Organizational Culture

PA RT 4

SHAR ING THE

ORGAN IZATIONA L VI SION

How can Hyatt Hotels

effectively manage a global corporation with multiple hotel chains and thousands of

employees? A strong organizational culture

is part of the answer.

O Describe the common characteristics of organizational culture. f) Compare the functional and dysfunctional effects of organizational culture on people

and the organization.

9 Identify the factors that create and sustain an organization's culture. C, Show how culture is transmitted to employees. 0 Demonstrate how an ethical organizational culture can be created. 0 Describe a positive organizational culture.

s CEO of Hyatt Hotels Corporation, Mark Hoplamazian (pictured here) was concerned with how he was going to introduce change to his employees after the global hotel company experienced significant growth

in 2013.1 Hotels had been added to the brand, the organization was entering new areas of the hos-

pitality industry, and he had to work with over 90 000 employees in 45 different countries.

This presented significant implementation challenges. It was particularly vital for

Hyatt, spread across the globe and highly decentralized, to make sure

its associates understood and Richard 1xew1AP images shared the mission of the

company. To get the message across, Hoplamazian wanted to create a uniform employment expe- rience for each employee, starting with a cohesive orientation program for new hires.

Management at Hyatt had to determine how to socialize new employees into the company's culture, while being mindful that there could be some glitches, with perhaps not all aspects

of the company's culture translating equally well in the 45 different countries on six conti- nents Hyatt was in. Hyatt has multiple brands, including Hyatt, Park Hyatt, Andaz, Grand

Hyatt, Hyatt Regency, Hyatt Place, and Hyatt House, and each services different parts of the hotel customer market. Park Hyatt is the organization's luxury brand.

Andaz is a boutique category. Several of the other Hyatt brands are full -service hotels. Despite the differences in the needs they serve, the company's prop- erties "share core values across the Hyatt brand: exceptional guest service,

upscale amenities, popular food and beverage programs, and innovative interior designs that incorporate local art and style." These values need to be communicated

to all employees for the company to do well. In this chapter, we show that every organization has a culture. We examine how that

culture reveals itself and the impact it has on the attitudes and behaviours of members of that organization. An understanding of what makes up an organization's culture and how it

is created, sustained, and learned enhances our ability to explain and predict the behaviour of people at work.

• What does organizational culture do?

\ I I ' , : ;, : ,V, , '

'l'IIE BIG IDEA • Is culture the same as rules? • What kind of organizational culture would work best for you?

A slrong organizalional cullure can guide

indi\'idual decisions and help everyone \\'Ork

LogeLher LO\vard Lhe scune goals.

351

352 Part 4 Sharing the Organizational Vision

O Describe the common characteristics of organizational culture.

organizational culture A system of shared meaning held by members that distinguishes 1he organizalioo from o1her organizations.

What Is Organizational Culture? When Henry Mintzberg, professor at McGill University and one of the world's leading management experts, was asked to compare organizational s tructure and corporate culture, he said, ·culture is the soul of the organiza tion- the bel iefs and values, and how they are manifested. 1 think of the structure as the skeleton, and as the flesh and blood. And culture is the soul that holds the thing together and gives it life force. "2

Organizational culture refers to a system of shared meaning held by members that distinguishes the organization from other organizations.3 Mintzberg's culture metaphor provides a clear image of how to th ink about culture. Culture provides stability to an organization and gives employees a clear understanding of "the way things are done around here.• Culture sets the tone for how an organization operates and how individuals within the organization interact. Think of the different impres- sions you have when a receptionist tells you that •Ms. Dettweiler• will be available shortly, while at another organization you are told that •Emma• will be with you as soon as she gets off the phone. It's clear that in one organization the ru les are more formal than in the other.

Seven primary characteristics capture the essence of an organization's culture:4

• Innovation and risk-taliing. The degree to which employees are encouraged to be innovative and take risks

• Attention to detail. The degree to which employees are expected to work with precision, analysis, and attention to detail

• Ouccome orientation. The degree to which management focuses on resu lts, or outcomes, rather than on the techniques and processes used to achieve these outcomes

• People orient.ation. The degree to which management decisions take into con- sideration the effect of outcomes on people within the organization

• Tea,n orienration. The degree to which work activities are organized around teams rather than individuals

• Aggressiveness. The degree to which people are aggressive and competitive rather than easygoing and supportive

• Stability. The degree to which organizational activities emphasize maintain ing the status quo in contrast to growth

Each of these characteris tics exists on a continuum from low to high. When individuals consider their organization in terms of these seven characteristics,

they get a composite picture of the organization's culture. This picture becomes the basis for feelings of shared understanding that members have about the organization, how things are done in it, and the way members are supposed to behave. Exhibit 10-1 dem- onstrates how these characteristics can be mixed to create highly diverse organizations. Organizational characteristics are even reflected in your classroom, as the Experiential Exercise on page 376 shows.

Culture Is a Descriptive Term If you have ever been in an organization (certainly you have been in many!), you probably noticed a pervasive culture among the members. Organizational culture shows how employees perceive the characteristics of an organization, not whether they like them- that is, it's a descriptive term. Research on organizational culture has sought to measure how employees see their organization: Does it encourage teamwork? Does it reward innovation? Does it stifle initiative? In contrast, job satisfaction seeks to measure

Chapter 1 O Organizational Culture 3 53

EXHIBIT 10-1 Contrasting Organizational Cultures

Organization A

• Managers must fully document all decisions.

• Creative decisions, change, and risks are not encouraged.

• Extensive rules and regulations exist for all employees.

• Productivity is valued over employee morale.

• Employees are encouraged to stay within their own department.

• Individual effort is encouraged.

Organization B

• Management encourages and rewards risk-taking and change.

• Employees are encouraged to "run with" ideas, and failures are treated as •1earning experiences. "

• Employees have few rules and regulations to follow.

• Productivity is balanced with treating its people right.

• Team members are encouraged to interact with people at all levels and functions.

• Many rewards are team-based.

how employees feel about the organization's expectations, reward practices, and the like. Although the two terms have overlapping characteristics, keep in mind that organiza- tional cu/cure is descriptive, whereas job satisfaction, for example, is evaluative.

Do Organizations Have Uniform Cultures? Organiza tional culture represents a perception of the organization that employees hold in common. Statements about organizational cullure are valid only if individuals with different backgrounds or al different hierarchical levels describe their organiza- tion's cultu re in similar lerms.5 The purchasing department can have a subculture that includes the core values of the dominant culture, such as aggress iveness, p lus additional values unique to members of tha t department, such as risk-taking. The dominant culture expresses the core values a majority of members share and that give an organization its distinct personality.6 Subcultures tend lo develop in large

J I dominant culture A system of /,,., J shared meaning that expresses the j core values shared by a majority of

Internet retailer Zappos understands how organizational behaviour affects an organization's perfor-

mance. Accord ing to the Zappos Insights website, employees are encouraged "to create fun and a little

weirdness," which helps the firm maintain a positive work environment.

_g the 0<ganization's members.

core values The primary or dominant values that are accepted throughout the organization.

subcultures Mini-cultures within an 0<ganization, typically defined by department designations and geographical separation.

354 Part 4 Sharing the Organizational Vision

f) Compare the functional and dysfunctional effects of organizational culture on people and the organization.

strong culture A culture in which the core values are intensely held and widely shared.

organizations to reflect common problems, situations, or experiences faced by groups of members in the same department or location. Most large organizations have a dominant culture and numerous subcultures. 7

If organizations were composed only of a variety of subcultures, the dominant organizational culture would be significantly less powerful. ll is the "shared mean- ing• aspect of culture that makes it such a potent device for guiding and shaping behaviour. This is what allows us to say that the Zappos culture values customer care and dedication over speed and efficiency, which directs the behaviour of Zappos executives and employees.8

Strong vs. Weak Cultures It is possible to differentiate between strong and weak cultures.9 If most employees (responding to surveys) have the same opinions abou t the organization's mission and values, the culture is strong; if opinions vary widely, the culture is weak.

In a strong culture, the organization's core values are both intensely held and widely shared. ID The more members who accept the core values and the greater their commitment, the stronger the culture and the greater its influence on member behav- iour. This is because the high degree of shared values and intensity create a climate of high behavioural control. For instance, Nordstrom employees know what is expected of them, and these expectations go a long way toward shaping their behaviour.

A strong culture should reduce employee turnover because it demonstrates high agreement about what the organization represents. Such unanimity of purpose builds cohesiveness, loyalty, and organizational commitment. These qualities, in turn, lessen employees' tendency to leave the organization. 11

Culture vs. Formalization We have seen in this text that high formalization creates predictability, orderliness, and consistency. A strong culture modifies behaviour simi larly. Therefore, we should view formal ization and culture as two different roads to a common destination. The stronger an organization's culture, the less management needs to be concerned with developing forma l ru les and regulations to guide employee behaviour. Those guides will be inter- nalized in employees when they adopt the organization's culture.

What Do Cultures Do? Let's discuss the role culture performs and whether it can ever be a liability for an organization.

Culture's Functions Culture defines the rules within an organization:

• It has a boundary-defining role because it creates distinction between organizations.

• It conveys a sense of identity to organization members.

• It helps create commitment to something larger than an individual's self-interest.

• It enhances stability; it is the social glue that helps hold the organization together by providing standards for what employees should say and do.

• It serves as a control mechanism that guides and shapes the altitudes and behaviour of employees, and helps them make sense of the organization.

Chapter 1 O Organizational Culture 3 55

This last function is of particular interest to us. 12 Culture defines the rules of the game.

A strong cuhure supported by formal rules and regula- tions ensures employees will act in a relatively uniform and predictable way. Today's trend toward decentra lized organizations makes culture more important than ever, but iron ically it also makes establishing a s trong cuhure

What does organizational

culture do'?

more difficul t When formal authority and control systems are reduced, culture's shared 1nea11ing can point everyone in the same direction. However, employees organized in teams may show greater allegiance to their team and its values than to the organiza- tion as a whole. In virtual organizations, the lack of frequent face-to-face contact makes establishing a common set of norms very difficult Strong leadership that communicates frequently about common goals and priorities is especially important in innovative organizations. 13

Culture Creates Climate If you have worked with someone whose positive altitude inspired you lo do your best, or with a lacklustre team that drained your motivation, you have experienced the effects of cl imate. Organizational climate refers lo the shared perceptions orga- nizational members have about their organization and work environment. 14 This aspect of cultu re is like team spirit at the organizational level. When everyone has the same general feelings abou t what is important or how well things are working, the effect of these altitudes wi ll be more than the sum of the individual parts. One meta-analysis found that across dozens of different samples, psychological climate was strongly related to individuals' level of job satisfaction, involvement, commitment, and motivation. 15 A positive workplace climate has been linked to higher customer satisfaction and organizational fina ncial performance as well .16 Read more about workplace cl imate in Case lncident- Accive Cultures on pages 378- 379.

Dozens of dimensions of cl imate have been studied, including innovation, creativ- ity, communica tion, warmth and support, involvement, safety, justice, diversity, and customer service.17 For example, someone who encounters a diverse cl imate will feel more comfortable collaborating with co-workers regardless of their demographic back- grounds. Climates can interact with one another to produce behaviour. For example, a climate of worker empowerment can lead to higher levels of performance in organi- zations that also have a cl imate of personal accountability. 18 Climate also influences the habits people adopt If there is a cl imate of safety, everyone wears safety gear and follows safety procedures even if individually they would not normally think very often about being safe- indeed, many studies have shown that a safety climate decreases the number of documented injuries on the job.19 West)el sets the lone for its customers by making sure its employees have fu n too, as OB in the Workplace shows.

The Ethical Dimension of Culture Organizational cultures are not neutral in their ethical orientation, even when they are not openly pursuing ethical goals. Over time, the ethical work climate (EWC), or the shared concept of right and wrong behaviour, develops as part of the organizational climate. The ethical climate reflects the true values of the organization and shapes the ethical decision-making of its members.

Researchers have developed ethical climate theory (ECT) and the ethical climate index (EC/) to categorize and measure the ethical dimensions of organizational cultures. 20

Of the nine identified ethical di male categories, five have been most prevalent in orga- nizations: instrumental, caring, independence, Jaw and code, and niles. Each explains the general mindset, expectations, and values of the managers and employees in relation

organizational climate The shared perceptions organizational members have about their organiza- tion and work environment.

ethical work climate (EWC) The shared concept of right and wrong behaviour in the workplace that reflects the true values of the organization and shapes the ethical decision-making of its members.

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WesUet Brings on the Fun

How does a company ensure its cultural climate is maintained and supported? WestJet is a Canadian airl ine famous for its fun, customer-oriented corporate culture.21 Both employees and guests are encouraged to actually enjoy flyi ng- a goal that is reinforced by a casual working environment in which jokes and innocuous silliness are encour- aged. Maintaining this positive and upbeat culture can be difficult, especially within a high-stress industry that experiences a great deal of uncertainty. WestJet management is well aware of the effects of the economy o n its industry and ensures that, even in times of austerity, resources are provided 10 maintain its cultu re. WestJet has over 200 employee events a year that support and reinforce its culture. Employees who get it right are recognized through a "Kudos Corner"- an on line program that allows peers and customers to acknowledge excellence when they see it.

Even WestJet's organizational structure supports its culture. For example, the com- pany has a "WestJetters" committee of flight at1endan1s who meet in order to, among other things, write jokes that can be used to amuse guests o n fl ights. Devoting time and money to th is son of work may seem frivolous to some, but WestJet sees it as a crucial component of cultural maintenance. "Everybody's unique: says Don Bell, a WestJet founder and the airline's executive vice-president, "and if you embrace people's personalities rather than turn them into robo ts, and give them the guidelines and the working environment to blossom, it creates something that's very hard to reckon with.•

WestJet has been able 10 demonstrate very clearly that a direct link exists between maintaining its fun, upbeat cultu re and high levels of customer satisfaction. Vince Molinaro, managing director of Leadersh ip Solutio ns for Knightsbridge Human Capital Solutions, observed that "far too many organizations operate on the belief that you can have one set of principles and standards for employees, and another completely different set for customers. WestJet is demonstrating the power of align- ment between employee and customer." _ . . .... . ... .. ... .. ... . .... . ... .. ... .... . _

Employees of French video game publisher Ubisoft are shown working on an upcoming version of the

Just Dance game at the firm's creative studio near Paris. Imaginative employees who work in teams on challenging projects at Ubisoft's 26 creative studios around the world share the positive climate of creative collaboration that reflects the diversity of team members.

Chapter 1 O Organizational Culture 3 57

to their organization. For instance, in an instrumental ethical climate, managers may frame their decision making around the assumption that employees (and companies) are motiva ted by self-interest ( egoistic). Conversely, in a caring cl imate, managers may operate under the expectation that the ir decis ions will positively affect the greatest number of stakeholders ( employees, customers, suppliers) possible.

Ethical cl imates of independence rely on each individual's personal moral ideas to dictate his or her workplace behaviour. Law and code climates require managers and employees to use an external standardized moral compass such as a professional code of conduct for norms, while rules cl imates tend to operate by internal standardized expectations from, perhaps, an organizational policy manual. Organiza tions often progress th rough different categories as they move through their business life cycle.

An organization's ethical cl imate powerfully influences the way its individual members feel they should behave, so much so that researchers have been able Lo pre- dict organizational outcomes from the climate categories.22 Instrumental cl imates are negatively associated with employee job satisfaction and organizational commitment, even though those cl imates appeal to self-interest ( of the employee and the company). They are positively associated with turnover intentions, workplace bullying, and devi- ant behaviour. Caring and ru les cl imates may bring greater job satisfaction. Caring, independence, rules, and law and code cl imates also reduce employee turnover inten- tions, workplace bullying, and dysfunctional behaviour. Research indicates that ethical cultures take a Jong-term perspective and balance the rights of multiple stakeholders including employees, stockholders, and the community. Managers are supported for taking risks and innovating, discouraged from engaging in unbridled competition, and guided to heed not just what goals are achieved but how.

Studies of ethical cl imates and workplace outcomes suggest that some ethical cl i- mate categories are likely to be found in certain organizations. Industries with exacting standards, such as engineering, accounting, and Jaw, tend to have a ru les or law and code climate. Industries that thrive on competitiveness, such as financial trading, often have an instrumental climate. Industries with missions of benevolence are likely to have a caring cl imate, even if they are for profi t as in an environmental pro tection firm.

Research is exploring why organizations tend to fall into certain ethical climate categories by industry, especially successful organizations. We cannot conclude that instrumental cl imates are bad or that caring climates are good. Instrumental climates may foster the individual-level successes their companies need to thrive, for example, and they may help underperformers Lo recognize their self-interest is beller served else- where. Managers in caring climates may be thwarted in making the best decisions when only choices that serve the greatest number of employees are acceptable.23 The ECI, first introduced in 2010, is a new way researchers are seeking to understand the context of ethical drivers in organizations. By measuring the collective levels of moral sensitivity, judgment, motivation, and character of our organizations, we may be able to judge the strength of the influence our ethical climates have on us.24

Although ECT was first introduced more than 25 years ago, researchers have recently been studying ethics in organizations more closely to determine not only how ethical climates behave, but also how they might be fostered and even changed.25 Eventually, we will be ab le to provide leaders with clear blueprints for designing effective ethical climates.

Culture and Sustainability As the name impl ies, sus tainability refers to practices tha t can be mainta ined over very Jong periods of time26 because the tools or structures that support the practices are not damaged by the processes. One survey found that a great majority of executives saw sustainability as an important part of future success.27 Concepts of sustainable management have their origins in the environmental movement, so processes that are in harmony with the natural environment are encouraged. Social sustainability practices

sustainability Organization prac- tices that can be sustained over a long period of time because the tools or structures that support them are not damaged by the processes.

358 Part 4 Sharing the Organizational Vision

address the ways social systems are affected by an organization's actions over time and, in turn, how changing social systems may affect the organization.

Sustainable management doesn't need to be purely altru istic. Systematic reviews of the research literature show a generally positive relationship between sustainability and financial performance. 28 However, there is often a strong moral and ethical component that shapes organizational culture, and sustainability must be a core value in order for the relationship to exist.

To create a truly sustainable business, an organization must develop a long-term culture and pul its values into practice.29 In other words, there must be a sustainable system for creating sustainability! In one workplace s tudy, a company seeking lo reduce energy consumption found that soliciting group feedback reduced energy use signifi- cantly more than simply issuing read ing materials about the importance of conserva- tion.30 Talking about energy conservation and building the value into the organizational culture results in positive employee behavioural changes. Like other cultural practices we have discussed, sustainability needs time and nurturing lo grow.

Culture and Innovation The most innovative companies are often characterized by their open, unconventional, collaborative, vision-driven, accelerating cultures.31 Start-up firms often have innova- tive cultures by definition because they are usually small, agile, and focused on solving problems in order to survive and grow. Consider digital music leader The Echo Nest, recently bought by Spotify. As a start-up, the organization was unconventional, flexible, and open, hosting music app "hack• days for users and fostering a music cuhure.32 All these are hallmark~ of Spotify's culture, too, making the fit rather seamless.33 Because of the similar organizational cultures, The Echo Nest and Spotify may be able to continue their start-up level of innovation.

Founded in 1969, Samsung Electronics of South Korea is past the usual innovation l~e cycle stage, yet continues to foster a climate of creativity and idea generation. Samsung emulates a start-up culture

through its Creative Labs, where employees like engineer Ki Yuhoon, shown here, take up to a year off from their regular jobs to work on innovative projects.

Chapter 1 O Organizational Culture 3 59

Al the other end of the start-up spectrum, consider 30-year-old Intui t, one of the World's 100 Most Innovative Companies according to Forbes. Intuit employees attend workshops that teach them how to th ink creatively .. . and unconventionally. Sessions have led lo managers talking through puppets and holding bake sales to sell prototype apps with their cupcakes. The culture stresses open accountability. "I saw one senior guy whose idea they'd been working on for nine months get disproved in a day because someone had a beuer way. He got up in front of eveiyone and said, This is my bad. I should have checked my hypothesis earlier;• said Eric Ries, author of The Lean Startup. As a consultant for entrepreneurs, Ries considers the older software company equally innovative to start-ups because of its culture.34

Culture as a Liability Culture can enhance organizational commitment and increase the consis tency of employee behaviour, which clearly benefits an organization. Culture is va luable to employees too, because il spells out how th ings are done and what is important. But we should not ignore the potentially dysfunctional aspects of culture, especially a strong one, on an organization's effectiveness. Hewleu-Packard, once known as a premier computer manufacturer, rap idly lost market share and profits as dysfunction in its top management team trickled down, leaving employees disengaged, uncreative, unappre- ciated, and polarized.35 Let's consider some of the major factors that signal a negative organizational culture, beginning with institu tionalization.

Institutionalization When an organization undergoes institutionalization-that is, it becomes valued for itself and not for the goods or services it produces- it takes on a life of its own, apart from its founders or members.36 Institutional ized organizations often don't go out of business even if the original goals are no longer relevant. Acceptable modes of behav- iour become largely self-evident to members, and although th is isn't entirely negative, it does mean behaviours and habits go unquestioned, which can stifle innovation and make maintaining the organization's culture an end in itself.

Barriers to Change Culture is a liab ility when shared values don't agree with those that further the orga- nization's effectiveness. This is most likely when an organization's environment is undergoing rapid change, and its entrenched culture may no longer be appropriate.37

Consistency of behaviour, an asset in a stable environment, may then burden the orga- nization and make it difficult to respond to changes.

Barriers to Diversity Hiring new employees who differ from the majority in race, age, gender, disability, or other characteristics creates a paradox:38 Management wants to demonstrate support for the differences these employees bring to the workplace, but newcomers who wish to fit in must accept the organization's core cul ture. Second, because diverse behaviours and unique strengths are likely lo diminish as people assimilate, s trong cultures can become liab ilities when they effectively eliminate the advantages of diversity. Third, a strong culture that condones prejudice, supports bias, or becomes insensitive to differ- ences can undermine formal corporate diversity policies.

Strengthening Dysfunctions In general, we have discussed cultures that cohere around a positive set of va lues and altitudes. This consensus can create powerful forward momentum. However, coher- ence around negativity and dysfunctional management systems in a corporation can produce downward forces that are equally powerful. One study of thousands of

institutionalization A condtion that occurs when an 0<ganization takes on a life of its mm. apart from any of its members, and acquires immO<tality.

360 Part 4 Sharing the Organizational Vision

8 Identify the factors that create and sustain an organization's culture.

hospi tality-industry employees in hundreds of locations found that local organizational cultures marked by low or decreasing job satisfaction had higher levels of turnover.39

A~ we know from th is text, low job satisfaction and high turnover indicate dysfunction on the organization's part. Negative attitudes in groups add to negative outcomes, sug- gesting a powerful influence of culture on individuals.

Barriers to Acquisitions and Mergers Historically, when management looked at acquisition or merger decisions, the key decision factors were potential financia l advantage and product synergy. In recent years, cultural compatibi lity has become the primary concern.40 Al l things being equal, \vhether the acquisition works seems to have much to do with how well the two orga- nizations' cultures match up. When they don't mesh well, the organizational cultures of both become a liability to the whole new organization. A study conducted by Bain & Company found that 70 percent of mergers failed to increase shareholder values, and Hay Group found that more than 90 percent of mergers in Europe fa iled to reach financial goals. Considering this dismal rate of success, Lawrence Chia from Deloitte Consulting observed, •one of the biggest fai lings is people. The people at Company A have a different way of doing th ings from Company B . .. you can't find commonali ty in goals. "41 Culture dash was commonly argued to be one of the causes of AOL-Time Warner's problems.

Creating and Sustaining an Organization's Culture As Mark Hoplamazian, CEO of Hyatt Hotels, sought to give a better sense of the hotel's culture to employees, he recognized that to genuinely support the culture, some changes

were needed.42 Making meaningful and personal connections with guests, a core value, was

difficult when associates had to divide their attention between the guest in front of them and the computer screen providing the information necessary to help that guest. Changing to a

more user-friendly interface on various hotel operating systems allowed associates to engage more directly with guests.

Hoplamazian also wanted Hyatt to be an employee-friendly workplace. One of the issues

he found as he talked to employees was that scheduling of work hours was an annoyance. So the company developed an app so employees could schedule their work from their mobile

I phones. What role does culture play in creating high-performing organizations? An organization's culture does not pop out of thin air, and once established, it rarely fades away. What influences the creation of a culture? What reinforces and sustains these forces once they are in place? Exhibit 10-2 summarizes how an organization's culture is established and sustained. We describe each part of this process next.

EXHIBIT 10-2 How Organizational Cultures Form

Phi losophy of

organization 's founders

Select ion criteria

Top management

Socialization

Is culture the same as rules'!

Organization's cult ure

Chapter 1 O Organizational Culture 3 61

How a Culture Begins An organization's customs, traditions, and general way of doing things are largely due lo what il has done before and how successful it was in doing il. This leads us to the ulti- mate source of an organization's culture: the founders.43 Founders have a vision of what the organization should be, and the firm's in itial small size makes it easy to impose that vision on all organizational members. In the case of the Calgary Stampede, early found- ers were willing lo fight much larger pol itical and legal systems, including the Indian Act iL~elf. lo ensure that Indigenous people could participate in the event This philosophy would have senl a very strong message to Stampede workers and volunteers, reinforcing their culture of inclusion in a time period no t known for tolerance in general and cer- tainly not distinguished by any widespread inclusion of Indigenous cultures and people.

Cul lure creation occurs in three ways.44 First, founders only hire and keep employees who th ink and feel the way they do. Second, they indocLrinate and socialize employees to their way of thinking and feeling. Finally, the founders' own behaviour encourages employees lo identify with the founders and thereby internalize those beliefs, values, and assumptions. When the organization succeeds, the founders' personal ities become embedded in the cul lure.

The culture al Toronto-based PCL, the largest general contracting organization in Canada, is still strongly influenced by the vision of Ernest Poole, who founded the com- pany in 1906. "Poole's ru les," \vh ich include •Employ highest grade people obtainable" and •Encourage integrity, loyalty and efficiencies," s till influence the way the company hires and tra ins its employees long after the founder's death.45 Other contemporary examples of founders who have had an immeasurable impact on their organizations' cultures are the late Ted Rogers of Toronto-based Rogers Communications, Frank Stronach of Aurora, Ontario-based Magna International. and Richard Branson of UK-based Virgin Group.

Keeping a Culture Alive Once a culture is in p lace, practices with in the organization maintain it by giving employees a set of similar experiences.46 The selection process, performance evaluation criteria, Lrain ing and career development activities, and promotion procedures ensure that those hired fit in with the culture, that employees who support it are rewarded, and tha t those who challenge il are penalized ( or even expelled). Three forces play a particularly important part in sustaining a culture: selection practices, the actions of top management, and socialization methods. Let's look at each.

Selection The explicit goal of the selection process is lo identify and hire individuals who have the knowledge, skills, and abilities to perform successfully.

The final decis ion, because it's s ignificantly influenced by the decis ion maker's judgment of how well candidates will fit into the organization, identi fies people whose values are consistent with at least a good portion of the organiza tion.47

The selection process also provides information to applicants. Those who perceive a conflict between their values and those of the organization can remove themselves from the appl icant pool. Selection thus becomes a two-way s treet, allowing employer and applicant to avoid a mismatch and sustaining an organization's culture by remov- ing those who might auack or undermine its core va lues. Windsor, Ontario-based Windsor Family Credit Union makes job candidates go through a process that has as many as eight s teps so that the organization and the employee can determine if they are a good fi t for each other.48 To signal that dignity and respect are important parts of Kitchener, Ontario-based Mennonite Savings and Credit Union's culture, job candidates are provided with interview questions in advance. The credit union encourages two-way communication throughout the hiring process.49

C, Show how culture is transmitted to employees.

362 Part 4 Sharing the Organizational Vision

socialization The process that adapts new employees to an organization's culture.

prearrival stage The period of learning in the socialization process that occurs before a new employee joins the organization.

Top Management The actions of top management have a major impact on the organization's culture. 50

Through words and behaviou r, senior executives establish norms that filter through the organization about, for instance, whether risk-taking is desirable; how much freedom managers give their employees; appropriate dress; and what actions will pay off in terms of pay raises, promotions, and other rewards.

Socialization No matter how effectively the organiza tion recruits and selects new employees, they need help adapting to the prevailing culture. That help is sodaliza tion.51 Socialization can help alleviate the problem many employees report that their new jobs are different than expected. Socialization done well will develop a new employee's self-efficacy, hope,

optimism, and resil ience.52 Case Incident- The Place Makes the People on page 377- 378 describes how even office space has socializing power.

New employees at the Japanese e lectronics company Sanyo are socialized through a particularly long tra ining program. At their in tensive five-month course, trainees ea t and sleep together in company-subsidized dorms and are required to vacation together at company-owned resorts. They learn the Sanyo way of doing everything- from how to speak to managers to proper grooming and dress.53 The company considers th is pro- gram essential for transforming young employees, fresh out of school, into dedicated kaisha senshi, or corporate warriors.

Starbucks does not go to the extreme that Sanyo does, but it seeks the same out- come.54 All new employees go through 24 hours of training. Classes cover everything

necessary to transform new employees into brewing consultants . They learn the Starbucks philosophy, the company jargon, and even how to help customers make deci- sions about beans and grind, as well as about espresso machines. The result is employees who understand Starbucks' culture and who project an enthusiastic and knowledgeable

image to customers. We can think of socialization as a process composed of three stages: prearriva l,

encounter, and metamorphosis.55 This process (illustrated in Exhibit 10-3) has an impact on the new employee's work productivity, commitment to the organization's objectives, and decision to stay with the organization. OB in the Workplace discusses how TELUS starts to socialize future employees from the time they visit the company's Careers web page.

The Prearrival Stage The prearrlval s tage explicitly recognizes that each individual arrives with a set of values, attitudes, and expectations about both the work and the orga- n ization. One major purpose of a business school, for example, is to social ize students

to the attitudes and behaviours companies want. Newcomers to high-profile organiza- tions with strong market positions have their own assumptions about what it's like to work there.56 How accurately people judge an organization's culture before they jo in

the organization and how proactive their personal ities are become critical predictors of how well they adjust.57

EXHIBIT 10-3 A Socializa tion Model

Socia lizat ion Process Outcomes

Productivity

Prearrival I Encounter t-+I Metamorphosis - -+--..i Commitment

Turnover

Chapter 1 O Organizational Culture 363

Allen Lau, CEO of Toronto-based Wattpad , a mobile reading app, carefully considers who to hire for his company. The app 's users form a diverse community and while Lau believes he should hire for cultural

fit, his employees need to mirror his users in some way. "If a company is lacking diversity ... because everyone has blind spots, and if the employee base is similar in terms of thinking and perspec tive, then naturally the blind spots will be larger. •58

Making Culture Work

How early on should socialization take place? Leaders al Burnaby, BC-based TELUS recognize that in order for an organizational culture to work, that culture needs lo be establ ished early, preferably during the hiring process.59 ll also needs to be continually supported and reinforced.

TELUS prides itself on a culture focused on collaborative learning. This culture is heavily reinforced on its Careers web page. TELUS asks prospective candidates whether they build "spirited relationships." Prospective candidates are also informed that they should expect to •roster a strong collaborative network,• and "continually drive their own learning." Thal learning is expected to begin immediately. Unlike most employ- ers, TELUS offers job applicants tips about what specifically to include in their resume and cover letter and how best to prepare for an interview with the company. It even offers a · career Tools" page that helps job seekers identify their goals, outline their personal strengths, and match those goals and strengths with open positions within the organization.

This focus on learning is further reinforced after the hiring process. For example, collaboration tools and internal social networking sites are provided lo all employees, and open-door policies encourage the free flow of information between staff and man- agement. Regular webinars are offered on a variety of topics and mentors and coaches assist with the learning process. Dan Pontefract, chief envisioner al TELUS, explains the company's approach: "the more open and collaborative you are with people, the healthier your culture becomes." A healthy, established cul lure that emphasizes ongo- ing learning helps TELUS stay ahead of the curve in a highly competitive, innovation-

~ focused industry . . . ..... . ...... . ..... . ..... . ...... . ..... . ..... .. ..... . ..... . ... .

364 Part 4 Sharing the Organizational Vision

encounter stage The stage in lhe socializalioo process in which a new employee sees what the 0<ganization is really like and C011fronts the pos- sibility that expectations and reality may diverge.

metamorphosis stage The stage in lhe socialization process in which a new employee adjusts to lhe values and norms of lhe job, w0<k group, and organizalioo.

One way to capital ize on prehire characteristics in socialization is to use the selec- tion process lo inform prospective employees about the organization as a whole. We have also seen how the selection process ensures the inclusion of the •right type"- those who will fit in.

The Encounter Stage Upon entry into the organization, the new employee begins the encoun ter s tage and confronts the possibility that expectations- of the job, co-workers, boss, and organization in general- may differ from real ity. If the expecta- tions were fairly accurate, this stage merely reaffirms earlier perceptions.

However, this is often not the case. Al the extreme, new members may become totally d isillusioned with the realities of their job and resign. Proper recruiting and selection should significantly reduce the probabil ity of this outcome, and so too should encouraging friendship lies in the organization- newcomers are more committed when friendly co-workers help them "learn the ropes."60 A study by professor Alan Saks of the Rotman School of Management al the University of Toronto and professor Jamie Gruman of the School of Hospitality and Tourism Management at the University of Guelph demonstra tes the benefits of orientation, tra ining, and mentorship programs for new employees. These activities help employees adjust better because they make them feel happier, more confident that they will more likely fit with the organization, and therefore more engaged. 61

The Metamorphosis Stage Finally, lo work out any problems d iscovered during the encounter stage, the new employee changes or goes through the metamorphosis stage. The options presented in Exhibi t 10-4 are designed to bring about metamorphosis. The more management relies on formal, collective, fixed, and serial socialization programs while emphasizing divestiture, the more likely newcomers' d ifferences and perspec- tives will be stripped away and replaced by standardized and predictable behaviours.

In a study conducted by Peter B. Gustavson School of Business at the University of Victoria in 2015, Tim Hortons was rated the most trusted brand in Canada. However, franchisees do not believe that reputation will last much longer, now that the company is no longer private but is owned by Restaurant Brands, which is backed by the Brazilian investment firm 3G Capital.

Chapter 1 O Organizational Culture 365

EXHIBIT 11>-4 Entry Socialization Options

Formal vs. Informal The more a new employee is segregated from the ongoing work setting and differentiated in some way to make explicit his or her newcomer's role, the more formal socialization is. Specific orientation and training programs are examples. Informal socialization puts the new employee directly into his or her job, with little or no special attention.

Individual vs. Collective New members can be socialized individually. This describes how it's done in many professional offices. They can also be grouped together and processed through an identical set of experiences, as in military boot camp.

Fixed vs. Variable This refers to the time schedule in which newcomers make the transition from outsider to insider. A fixed schedule establishes standardized stages of transition. This characterizes rotational training programs. It also includes probationary periods, such as the 8- to 10-year "associate" status accounting and law firms use before deciding whether to name a candidate as a partner. Variable schedules give no advance notice of their transition timetable. variable schedules describe the typical promotion system, where individuals are not advanced to the nex1 stage until they are "ready."

Serial vs. Random Serial socialization is characterized by the use of role models who train and encourage the newcomer. Apprenticeship and mentoring programs are examples. In random socialization, role models are deliberately withheld. The new employee is left on his or her own to figure things out.

Investiture vs. Divestiture Investiture socialization assumes that the newcomer's qualities and qualifications are the necessary ingredients for job success, so these qualities and qualifications are confirmed and supported. Divestiture socialization tries to strip away certain characteristics of the recruit. Fraternity and sorority "pledges" go through divestiture socialization to shape them into the proper role.

Sources: Based on J. Van Maanen, "People Processing: Strategies of Organizational Socialization,' Organizational Dynamics, Summer 1978, pp. 19-36; and E. H. Schein, "Organizational Culture,' American Psychologist, February 1990, p. 116.

These institutional practices are common in police departments, fire departments, and other organiza tions that value rule following and order. Programs that are informal, individual , variable, and random while emphasizing investi ture are more l ikely lo give newcomers an innovative sense of their role and methods of working. Creative fields,

such as research and development, advertising, and filmmaking, rely on these individual practices. Most research suggests that high levels of institutional practices encourage

person- organization fi t and h igh levels of commi tment, whereas individual practices produce more role innovation.62

The three-part entry social ization process is complete when

• The new employee has become comfortable w i th the organization and his or

her job

• The new employee has internalized the norms of the organization and the work group, and understands and accepts these norms

• The new employee feels accepted by his or her peers as a trusted and valued

individual, is self-confident that he or she has the competence to complete the

job successfully, and understands the system- not only his or her own tasks but also the rules, procedures, and informally accepted practices

• The new employee understands how he or she will be evaluated and knows

what criteria w i ll be used lo measure and appraise h is or her work; he or she knows what is expected and what constitutes a job 'well done•

As Exhib it 10 -5 shows, successful metamorphosis should have a posi live impact on

the new employee's productivity and commitment to the organiza tion. It should also

reduce the tendency lo leave the organization (turnover). Researchers examine how employee alti tudes change during social ization by measur-

ing those attitudes at several points over the first few months. Several studies have now documented pauerns of "honeymoons• and "hangovers• for new workers, showing

that the period of initial adjustment is often marked by decreases in job satisfaction as

ideal ized hopes come into contact with the real ity of organizational l ife.63 Newcomers

366 Part 4 Sharing the Organizational Vision

EXHIBIT 10-S How Organizational Cultures Have an Impact on Employee Performance and Satisfaction

Objective factors Strength

High • Innovation and risk-

taking • Attention to detail Perceived as Organizational r---~, culture /

Performance J • Outcome orientation • People orientation Satisfaction I • Team orientation • Aggressiveness

Low • Stability

may find lhal lhe level of social supporl Lhey receive from supervisors and co-workers is gradually withdrawn over Lhe firsl few weeks on the job, as everyone relurns lo "business as usual. "64 Role confl ict and role overload may rise fo r newcomers over lime, and employees wilh lhe largest increases in Lhese role problems experience Lhe largesl decreases in commitment and satisfaction.65 It may be Lhat the initial adjust- ment period for newcomers presents increasing demands and difficulties, at leasl in lhe short term.

How Employees Learn Culture

I As Hyatt Hotels CEO Mark Hoplamazian talked to employees about how they learned the company culture, he began to reth ink how culture was implemented at Hyatt.66 He felt the company already hired great people. He talked to associates (as Hyatt's employees are known)

to learn more about what happened when people joined the company, and how policies and

procedures played a role in the working and private lives of those in the Hyatt family. He looked at lhe situation from different perspectives to see where things were not connecting.

One employee who had previously worked for a hotel in Mexico that Hyatt acquired was asked

what her first day at work for Hyatt was like. Hoplamazian found it was difficult for her to say anything more than "it was great." He wanted her to be more explicit, so he kept talking wilh

her. Finally, she burst into tears. "tn the first 48 hours of our management, she had learned

moslly about how she could get fired' The onboarding/orientation program was all about compliance and policies and rules and regulations-like it is at so many companies. And

the result was that it had terrified her," said Hoplamazian. He was dismayed that employees

saw orientation, a foundational part of introducing employees to an organization's culture, as a negative experience. He went to work immediately to take orientation out of lhe hands

of HR and legal, and make it a more welcoming experience. "We went back and redesigned the entire orientation process. The entirety of the first day of onboarding is now about what

we stand for, what it means to be part of the Hyatt family-viewed and presented from an

emotional perspective. Not from a left-brain, commercial perspective bu t from a right-brain experiential perspective."

I Why does culture have such a strong influence on people's behaviour' Culture is Lransmiued to employees in a number of forms, lhe most potenl being stories, rituals, material symbols, and language. These forms enable both employees and lhe outside world lo read lhe organization's culture. From Concepts to Skills on pages 379- 381 offers additional ideas on how to read an organization's culture.

v\lhat kind of organizational cultrure ~,·ould work best for

you'!

Chapter 1 O Organizational Culture 3 67

Stories When Toronto-based Bank of Montreal (BMO) decided several years ago to become a leader in customer service in the banking industry, it needed a way of communicat- ing th is message to the bank's employees. The decision: "Every meeting starts with a customer story.• No mauer what kind of meeting is being held, one staff member has to tell a recent s tory about an interaction with a customer- ranging from feel-good stories to horror stories of something that went wrong for the customer. By focusing on customer stories, employees know they need to pay attention to interactions so that they can share the stories. Susan Brown, a senior vice-president with BMO, explains the importance of the story focus for the bank: "If you want to change culture, a great way to do it is the customer story. It's part of the evolution of developing a customer- centric culture."67

Stories circulate through many organizations, anchoring the present in the past and legitimating current practices. They typically include narratives about the organization's founders, ru le breaking, rags-Lo-riches successes, workforce reductions, relocations of employees, reactions to past mistakes, and organizational coping.68 Employees also create their own narratives about how they came to either fit or not fit with the organiza- tion during the process of socialization, including first days on the job, early interactions with others, and first impressions of organizational life.69

Rituals Rituals are repetitive sequences of activities that express and reinforce the key values of the organization; wha t goals are most important; and/or which people are important vs. which are expendable.70

One well-known corporate ritual is Wal mart's company chant. Begun by the com- pany's founder, Sam Walton, as a way to motiva te and unite his workforce, "Gimme a W, gimme an A, gimme an L, give me an M, A, R, T! • has become a company ritual that bonds Walman employees and reinforces Walton's belief in the importance of his employees to the company's success. Similar corporate chants are used by IBM, Ericsson, Novell, Deutsche Bank, and PricewaterhouseCoopers.71

Material Symbols The layout of corporate headquarters, the types of cars given to top executives, and the presence or absence of corporate aircraft are a few examples of mater ial symbols. O thers include the size of offices, the elegance of furn ishings, executive perks, and dress code.72 In addition, corporate logos, signs, brochures, and advertisements reveal aspects of the organization's culture.73 These material symbols convey to employees, customers, and clients who is important, the degree of egalitarian ism top management desires, and the kinds of behaviour that are appropriate ( such as risk-taking, conserva- tive, authoritarian, participative, individualistic, social).

Some cultures are known for the perks in their environments, such as Google's bocce courts, SAS's free health care clinic, and Microsoft's organic spa. Al Bolton, Ontario-based Husky Injection Molding Systems, a more egal itarian culture is favoured. Employees and management share the parking lot, d ining room, and even washrooms.

Language Many organizations and subunits within them use language to help members iden- tify with the culture, show their acceptance of it, and help preserve it. Unique terms describe equipment, offices, key individuals, suppliers, customers, or products that rela te to the business. New employees may al first be overwhelmed by acronyms and jargon that, once assimila ted, act as a common denominator to unite members of a

rituals Repetitive sequences of actil/ities that express and reinforce the key values of the organization; what goals are most important: and which people are important and which are expendable.

material symbols What conveys to employees who is important, the oogree of egal~arianism top man- agement desires, and the kinds of behaviour that are appropriate.

368 Part 4 Sharing the Organizational Vision

Baidu, a Chinese web services firm, describes its culture as "simple" - meaning direct, open, and uncomplicated-and "reliable" - meaning trusting the competence of colleagues. Baidu's casual work- places reflect this trust with lounges, gyms, yoga studios, and dome-shaped nap rooms employees may use at any time.

given culture or subculture. Baristas al Starbucks call drinks short, tall, grande, and venti instead of small, medium, large, and extra-large, and they know the difference between a half-decaf double tall almond skinny mocha and an iced short schizo skinny hazel- nut cappuccino with wings. Students and employees al Grant MacEwan College are informed by the philosophy of the college's namesake. Dr. Grant MacEwan, historian, writer, politician, and environmentalist, was never a formal part of the management of the organization. However, many phrases from his writing and creed have fou nd their way into forma l college publ ications and calendars, as well as informal commu- nications, including his most well known, "I have tried to leave things in the vineyard better than I found them."74

Changing Organizational Culture

I One of the challenges Mark Hoplamazian, CEO of Hyatt, faced was how to communicate the company's commitment to the environment, one of Hyatt's global platforms, to the hotels.75 The principle of thinking globally while acting locally was truly put to the test. Not all locations had

the same resources or needs, and cities and countries had their own environmental regulations

and polic ies. Hoplamazian wanted each hotel to contribute to Hyatt's corporate social responsi-

bility (CSR) initiatives in a meaningful way, yet it would not be possible to implement one policy across the company. To address this, he decided to stop giving associates mapped-out plans

for their decisions and instead "give them a compass and say 'You figure out how you want to

bring yourself to bear.' A compass instead of a map is really one of the key concepts that we

are moving towards." In providing a compass instead of a map, Hoplamazian communicated

the need for change and new expectations for employees. Why has Hyatt been so successful

in creating an organizational culture that enables change'

Changing an organization's culture is difficult and requires tha t many aspects of the organization change al the same time, especially the reward s tructure. Culture is such a challenge lo change because il often represents the established mindset of employees and managers.

Chapter 1 O Organizational Culture 369

John Ko tler, professor of leadership al Haivard Business School, has created a detailed approach lo implementing change, which we discuss in Chapter 14.76 Efforts directed at changing organizational culture do not usually yield immediate or dramatic results. Cultural change is actually a lengthy process- measured in years, not months. But we can ask the question, "Can culture be changed?" The answer is, "Yes!• The evidence suggests that cultural change is most likely to occur when most or all of the fo llowing conditions exist:

• A dramatic crisis. A shock that undermines the status quo calls into question the relevance of the current cul lure. Examples of a crisis might be a surpris ing financial setback, the loss of a major customer, or a dramatic technological breakthrough by a competitor.

• Turnover in leadership. New lop leadership, who can provide an alternative set of key values, may be perceived as more capable of responding lo the cris is. Top leadership definitely refers lo the organization's chief executive, but also might need to include all senior management positions.

• Young and small organization. The younger the organization, the less entrenched its culture will be. It's a lso easier for management to communicate its new val- ues when the organization is small.

• Weal/ culture. The more widely held a culture is, and the higher the agreement among members on its values, the more difficult it will be to change. Weak cultures are more open to change than strong ones.

Next we discuss two specific kinds of cultural change: creating an ethical organiza- tional culture and creating a positive organizational culture.

Creating an Ethical Organizational Culture Despite differences across industries and cultures, ethical organizational cultures share some common values and processes.77 Therefore, managers can create a more ethical culture by adhering to the following principles:78

• Be a visible role model. Employees will look to the actions of lop management as a benchmark for appropriate behaviour, but eveiyone can be a role model to positively in fluence the ethical atmosphere. Senior managers who take the ethical high road send a positive message.

• Communicate ethical expectati.ons. Whenever you seive in a leadership capacity, minimize ethical ambiguities by sharing a code of ethics that s tates the organi- za tion's primaiy values and the judgment rules that employees must follow.

• Provide ethics training. Set up seminars, workshops, and tra ining programs lo reinforce the organization's s tandards of conduct, to clarify what practices are permissible, and to address possible ethical dilemmas.

• Visibly reward ethical acts and punish unethical ones. Evaluate subordinates on how their decisions measured against the organization's code of ethics. Review the means taken to achieve goals, as well as the ends themselves. Visibly reward those who act ethically and conspicuously punish those who do not.

• Provide protective mechanisms. Provide formal mechanisms so eveiyone can discuss ethical dilemmas and report uneth ical behaviour without fear of repri- mand. These might include identifying ethics counsellors, ombudspersons, or eth ics officers for liaison ro les.

The work of setting a positive eth ical cl imate has to start al the top of the organiza- tion.79 One study demonstrated that when top management emphasizes strong ethical

C, Demonstrate how an ethical organizational culture can be created.

370 Part 4 Sharing the Organizational Vision

0 Describe a positive organizational culture.

positive organizational culture A culture that emphasizes building on employee strengths, rewards m0<e than punishes. and emphasizes individual vitality and growth.

values, supervisors are more likely to practise ethical leadership. Positive attitudes trans- fer down to line employees, who show lower levels of deviant behaviour and higher levels of cooperation and assistance. Several other studies have come to the same general conclusion: The values of top management are a good predictor of ethical behaviour among employees. One study involving auditors found perceived pressure from orga- nizational leaders to behave unethically was associated with increased intentions to engage in uneth ical practices.8° Clearly the wrong type of organizational culture can negatively influence employees' ethical behaviour. Finally, employees whose ethical val- ues are s imilar to those of their department are more likely to be promoted, so we can think of ethical culture as flowing from the bottom up as well.81 The Ethical Dilemma on page 377 discusses the importance of honesty as an ethical base.

Creating a Positive Organizational Culture At first blush, creating a positive culture may sound hopelessly naive, or like a Dilberl- style conspiracy. The one thing that makes us bel ieve th is trend is here to stay is that there are signs that management practice and OB research are converging.

A positive organizational culture emphasizes building on employee strengths, rewards more often than it punishes, and emphasizes individual vital ity and growth.82

Let's consider each of these areas.

Building on Employee Strengths Although a positive organizational cul ture does not ignore problems, it emphasizes showing employees ho\v they can capitalize on the ir strengths. As management guru Peter Drucker said, •Most [ employees J do not know what their strengths are. When you ask them, they look at you with a blank stare, or they respond in terms of subject knowledge, which is the wrong answer.• Wouldn't it be better to be in an organizational culture that helped you discover your strengths and how to make the most of them7

As CEO of Auglaize Provico, an agribusiness based in Ohio, Larry Hammond used th is approach in the midst of the firm's worst financial struggles. When the organization had to lay off one-quarter of its workforce, he took advantage of what was right, rather than dwelling on what went wrong. "If you really want to [exce)I, you have to know yourself- you have to know what you're good at, and you have to know what you're not so good at: says Hammond. With the help of Gallup consultant Barry Conchie, Hammond focused on discovering and using employee strengths to help turn the com- pany around. "You ask Larry [Hammond] what the difference is, and he' ll say that it's individuals using their natural talents,• says Conchie.83

Rewarding More Often Than Punishing Although most organizations are sufficiently focused on extrinsic rewards such as pay and promotions, they often forget about the power of smaller (and cheaper) rewards like praise. Part of creating a positive organizational cul ture is •catching employees doing something right. • Many managers withhold praise because they are afraid employees will coast or because they think praise is not valued. Employees generally don't ask for praise, and managers usually don' t realize the costs of fa iling to give it.

Consider Elzbieta G6rska-Kolodziejczyk, a plant manager for International Paper's faci lity in Kwidzyn, Poland. Employees worked in a bleak windowless basement. Staff- ing became roughly one-th ird of its prior level, while production tripled. These chal- lenges had done in the previous three managers. So when she took over, at the top of her lis t was recognition and praise for staff. She initially found it difficult to give praise to those who were not used to it, especially men. "They were like cement at the begin- ning,• she said. "Like cement.• Over time, however, she found they valued and even

1\ 0 )'1 -+ CAREER OBJECTIVES

I ~ How Do I Learn to Lead? I' ll be sta rting a new job in a few w eeks. It's my first t ime working as a leader for a t eam, a nd I know I have a lot t o learn. Is t here a ny way I can be sure I'll achieve suc- cess as a leader?

-Gordon

Dear Gordon: Learning about a new job is always complicated. Learning how to be a leader is doubly complicated. It's expected that you have the capacity to provide direction and purpose for employees, and that you will respect the existing culture of the group as well as the capacities of individual members. Here are a few key insights toward making your transition into leadership successful:

• Ask questions. New leaders are often anxious about asking ques- tions of direct reports for fear of being seen as incompetent or weak. However, inquiring about how things have been done in the past and asking about individual goals signal that you are concerned

about the team members. Familiar- izing yourself with the group's cul- ture and practices can also help you develop techniques to harness the team's strengths and overcome challenges.

• Build relationships with other lead-

ers. Remember- you were put into this role for a reason, and the com- pany wants to see you succeed, so make the most of the resources of others. Take detailed notes regard- ing specific activities and strategies that were successful, and schedule a check-in to discuss how these strategies have worked over time. If you can show you are truly engaged in the learning process, you will find others are more willing to provide you with assistance and advice.

• Start small. Much has been writ- ten about the importance of gaining small wins early on to build your rep- utation. The old saying "you never get a second chance to make a first impression" definitely holds true in the workplace. Try to develop new initiatives with clear outcomes that

Chapter 1 O Organizational Culture 3 71

will allow you to demonstrate your leadership traits.

The best leadership transitions include learning what the situation calls for, and setting your team up for success from the start.

Be proactive!

Sources: Based on T. 8. Harris, N. U, W. R. Boswell, X. Zhang, and z. Xie, •Gelling What's New from Newcomers: Empowering Leader- ship, Creativity, and Adjustment in the Socializa- tion Context," Personnel Psychology 67 (2014), pp. 567-604; Y. H. Ji, N. A Cohen, A. Daly, K. Finnigan, and K. Klein, 'The Dynamics o f Voice Behavior and Leaders' Network Ties in Times of Leadership Successions,• Academy of Manage- ment Proceedings, 2014, 16324; and B. Eckfeldt, "5 Things New CEOS Should Focus on: Business Insider, June 1, 2015, http:// www.businessinsider.com/5-things-new-ceos- should· focus-on-2015-6.

The opinions provided here are of the manag- ers and authors only and do nor necessariy reflect those of their organizations. The authors or managers are not responsible for any errors or omissions, or for the results obtained from the use of this information. In no event will the authors or managers, or their related partner- ships or corporations thereof, be liable ro you or anyone else for any decision made or action taken In reliance on the opinions provided here.

reciprocated praise. One day a department supervisor pulled her over to tell her she was doing a good job. "This I do remember, yes; she said.84

Emphasizing Vitality and Growth No organization will get the best out of employees who see themselves as cogs in the machine. A positive culture realizes the d ifference between a job and a career. ll supports not only what the employee contributes to organizational effectiveness, but also how the organization can make the employee more effective personally and professionally.

Limits of Positive Culture Is a posi tive culture the answer to all organizational problems? Although companies have embraced aspects of a positive organizational culture, it's a new enough area that there is some uncertainty about how and when it works best.

Not all national cultures value being positive as much as Canadian and US cultures do and, even within these countries, there surely are limi ts to how far organizations should go. For example, Admiral. a British insurance company, has

372 Part 4 Sharing the Organizational Vision

established a Ministry of Fun in its call centres to organize poem writing, foosball, conkers (a British game involving chestnuts), and fancy dress days, which may clash with an industry value of more serious cultures. When does the pursuit of a positive culture start to seem coercive? As one critic notes, "Promoting a social orthodoxy of positiveness focuses on a particular constellation of des irable states and tra its but, in so doing, can stigmatize those who fail to fit the template. "85 There may be benefits to establishing a positive culture, but an organization also needs to be objective and not pursue it pas t the point of effectiveness. See Point/Counterpoint on page 375 for additional thoughts on whether organizations should create a positive organizational culture.

(0) :~:~,~~~ M;~:l~~~~~l : ua ( coll<ctoism aod illdi~du,lion ,_, ~ distance, and so on) in Chapter 3. Here, our focus is a bit narrower: How is

organizational culture affected by a global context? Organizational cultures often reflect national culture. The culture at AirAsia, a

Malaysian-based airline, emphasizes openness and friendship. The carrier has a lot of parties, a participative management, and no private offices, reflecting Malaysia's relatively collectivistic culture. However, the culture of Air Canada does not reflect the same degree of informality. If Air Canada were to set up operations in Malaysia or merge with AirAsia, it would need to take these cultural differences into account. When an organization opens up operations in another country, it ignores the local culture at its own risk.

Three limes a week, employees at the Canadian unit of Japanese video game maker Koei Tecmo begin the day by standing next to their desks, facing their boss, and saying "Good morning• in unison. Employees then deliver short speeches on topics that range from corporate princip les to 30 game engines. Koei Tecmo also has employees punch a time clock and asks women to serve tea to top executive guests. Although these practices are consistent with Koei Tecmo's culture, they do not fi t Canadian cul ture very well. •1t's kind of like school; says one Canadian employee.s6

The management of ethical behaviour is one area where national culture can rub against corporate culture.87 Canadian managers tend to endorse the supremacy of anonymous market forces as a moral obl igation for business organiza tions. This world- view sees bribery, nepotism, and favouring personal contacts as highly uneth ical. They also va lue profit maximization, so any action that deviates from profit maximization may suggest inappropriate or corrupt behaviour. In contrast, managers in developing economies are more likely to see ethical decisions as embedded in the social environ- ment. That means doing special favours for family and friends is not only appropriate but possibly even an ethical responsib ility. Managers in many nations view capitalism skeptically and believe the interests of employees should be put on a par with the inter- ests of shareholders, which may limit profit maximization.

Creating a multina tional organizational culture can initiate strife between employees of trad itionally competing countries. When Swedish, Norwegian, Finnish, and Danish banks combined to form Nordea Bank AB, the stereotypes some employees held based on the countries' historical relationships created tensions. Finland had originally been a colony of Sweden, and Norway had been a pan of Denmark and then ofS\veden. The fact that none of the employees had yet been born when their countries were colonies didn't matter; complex all iances within Nordea formed along na tional istic lines. To bridge these gaps, Nordea employed s torytell ing to help employees identify with posi- tive aspects of their shared geographical region. The organization reinforced the shared identity through press releases, corporate correspondence, equal country representation

Chapter 1 O Organizational Culture 3 7 3

in top management, and championing of shared values. Although the organization continues lo struggle with a multinational culture, the successes it has enjoyed can be attribu ted to careful auention lo national differences.88

Because culture strongly affects performance, organizations that have units in dif- ferent countries need lo construct and clearly communicate a multina tional culture that focuses on corporate values. These values should be unique and separate from identifiable country norms, emphasize respect and tolerance for cultural differences, and address the issue of cultural identity. Globalization can be an opportunity to positively change organizational cul ture.

Summary Exhibit 10-5 depicts the impact of organizational culture. Employees form an overall subjective perception of the organization based on factors such as the degree of risk to lerance, team emphasis, and support of people. This overall perception represents, in effect, the organization's culture or personality and affects employee performance and satisfaction, with stronger cul lures having greater impact.

SNAPSHOT SUMMARY I

What Is Organizational • Culture and Sustainability • Material Symbols Culture? • Culture and Innovation • Language • Culture Is a Descriptive Term • Culture as a Liability • Do Organizations Have Changing Organizational

Uniform Cultures? Creating and Sustaining an Cutture

• Strong vs. Weak Cultures Organization's Culture • Creating an Ethical

• Culture vs. Formalization • How a Culture Begins Organizational Culture

• Keeping a Culture Alive • Creating a Positive What Do Cultures Do? Organizational Culture

• Culture's Functions How Employees Learn

• Culture Creates Climate Culture

• The Ethical Dimension of • Stolies

Culture • Rituals

LESSONS LEARNED

• Reward systen1s generally signal the parrn of the orga- nizational culture that are valued.

• Culture can have both posi- tive and negative effect~ on organizations.

• Organizational culture can make change difficult, if not impossible.

Mylab Management Study, practise, and explore real business situations with these helpful resources: • Study Plan: Check your understanding of chapter concepts with self-study quizzes.

• Online Lesson Presentations: Study key chapter topics and work through interactive assessments to test your knowledge and master management concepts.

• Videos: Learn more about the management practices and strategies of real companies.

• Simulations: Practise management decision-making in simulated business environments.

-"' a:I C)

.,. for Review

What is organizational culture, and what are its common characteristics?

What are the functional and dysfunctional effects of organi- zational culture?

What factors create and sustain an organization's culture?

How is culture transmitted to employees?

How can an ethical organiza- tional culture be created?

What is a positive organizational culture?

for Managers

• Realize that an organization's cul- ture is relatively fixed in the short term. To effect change, involve top management and strategize a long-term plan.

• Hire individuals whose values align with those of the organiza- tion; these employees will tend to remain committed and satisfied. Not surprisingly, "misfits" have considerably higher turnover

rates.

• Understand that employees' performance and socialization depend to a considerable degree on their knowing what to do and not do. Train your employees well and keep them informed of changes to their job roles.

• Be aware that your company's organizational culture may not be "transportable" to other countries. Understand the cultural relevance of your organization's norms before introducing new plans or initiatives overseas.

for You

• Increase your understanding of culture by looking for similarities and differences across groups and organizations. For instance, do you have two courses where the classroom environment dif - fers considerably? What does this suggest about the underlying assumptions in teaching stu- dents? Similarly, compare cus- tomer service at two local coffee shops or sandwich shops. What does the employee behaviour

suggest about each organiza - l ion's culture?

• Carefully consider the culture of any organization at which you are thinking of being employed. You will feel more comfortable in cul- tures that share your values and expectations. You may find your- self reacting very negatively if an organization's culture (and values) does not match your own.

• Keep in mind that groups create mini-cultures of their own. When you work in a group on a student project, be aware of the values and norms that are being sup- ported early on in the group's life. These will greatly influence the group's culture.

Chapter 1 O Organizational Culture 3 75

ORGANIZATIONS SHOULD STRIVE TO CREATE A POSITIVE ORGANIZATIONAL CULTURE

POI NT Organizations should do everything they can to establish

a positive culture, because it works.89 Scores of recent

studies have shown that individuals who are in positive

states of mind at work and in life lead happier, more pro-

ductive, and more fulfilling lives. Given the accumulating

evidence, researchers are now studying ways to make

that happen.

A HaNard Business Review article discussed an

interesting concept: outsourcing inspiration. What is

meant by that? "A growing body of research shows that

end users-customers, clients, patients, and others Who

benefit from a company's products and services-are

surprisingly effective in motivating people to work harder,

smarter, and more productively.•

Some examples of how this might work:

• A "buddy program" that introduces Alzheimer's

patients to scientists working to develop treatments

for the disease

• Wee',<Jy team meetings that begin with stories about

how the team has made a difference in customers'

lives

• Health care workers coming face to face with a

patient whose story deeply touches them

Of course, there are other ways of creating a positive organizational culture, including building on strengths

and rewarding more than punishing.

Outsourcing inspiration is a great way for employ- ees to feel appreciated, to experience empathy, and to

see the impact of their work-all motivating outcomes that will lead organizations to be more effective and

individuals more fulfilled in their work. Creating a posi-

tive organizational culture is not magic, but it tends to

have extremely positive benefits for organizations that

embrace it.

COUNTERPOINT - - - There are many unanswered questions about the merits

of using positive organizational scholarship to build posi-

tive organizational cultures. Let's focus on three.

What is a positive culture? The employment rela-

tionship can be amicable and even mutually beneficial.

However, glossing over natural differences in interests

with the frosting of positive culture is intellectually dis-

honest and potentially harmful. From time to time, any

organization needs to undertake unpopular actions. Can

anyone dismiss an employee positively (and honestly), or

explain to someone why others received a raise? There

is a danger in trying to sugarcoat. Positive relationships

will develop-or not-on their own. We would be bet-

ter off preaching that people, and organizational cul-

tures, should be honest and fair rather than unabashedly

positive. Is practice ahead of science? Before we start

beseeching organizations to build positive cultures, we

should make sure these initiatives work as expected.

Many have unintended consequences, and we simply

don't have enough research to support the claims. As

one reviewer noted, "Everyone wants to believe they could have greater control over their lives by simply

changing the way they think. Research that supports this

idea gets promoted loudly and widely." But it's not based

on a mountain of evidence.

Is building a positive culture manipulative? Psycholo- gist Lisa Aspinwall writes of "saccharine terrorism,"

where employees are coerced into positive mindsets by

happiness coaches. You may think this an exaggeration,

but companies like UBS, American Express, KPMG,

FedEx, Adobe, and IBM have used happiness coaches

to do exactly that. As one critic noted, "Encouraging people to maintain a happy outlook in the face of less-

than-ideal conditions is a good way of keeping citizens

under control in spite of severe societal problems, or

keeping employees productive while keeping pay and

benefits low." Rather than insisting on positive cultures,

how about promoting honest cultures as an idea?

376 Part 4 Sharing the Organizational Vision

BREAKOUT GROUP EXERCISES .x j Fenn small groups to discuss the following topics, as assigned by your instructor: -"' 1. Choose 2 courses that you are taking this term, ideally in different faculties, and describe the culture of the !l c lassroom in each. What are the similarities and differences? What values about learning might you infer from

your observations of culture?

2. Identify artifacts of culture in your current or previous workplace. From these artifacts, would you conclude that the organization had a strong or weak culture?

3. Have you or someone you know worked somewhere where the culture was strong? What was your reaction to that strong culture? Did you like that environment, or would you prefer to work where there is a weaker culture? Why?

EXPERIENTIAL EXERCISE

Greeting Newcomers Divide into groups of 3-4 students. Discuss these four primary issues:

• Describe your first impressions of the university when you applied. This is important because it helps to iden-

tify assumptions other new students may have coming in.

• Describe some of your early experiences in the new environment, and how they either reinforced or changed

your pre-entry expectations. Include activities officially sponsored by your school, as well as unplanned experi-

ences that told you what the culture was like.

• Identify key issues you wish you had learned more about when you arrived. Think of the sorts of things that

caused the most trouble for you, or that were difficult for you to figure out on your own.

• Contrast your early experiences with your current knowledge of what the culture is like. How has long-tern,

interaction changed your ideas about the culture of the university?

After describing your school's culture as a whole, consider the same four issues as they relate to your major field

of study.

Design a Program Use the material from the chapter to develop an "ideal" program that could be used to introduce new students to the

culture. This might closely resemble what you have experienced, or it may be very different. The goal should be to

reduce student anxiety and stress during the transition, and to promote a culture that helps newcomers meet their

goals as efficiently and effectively as possible. Your socialization program should include pre-entry messages, recruiting

infonnation, early orientation sessions, and long-term follow-up. You will want to detennine, at each phase, who should

be sending these messages so they have the most impact on newcomers.

Questions

1. Based on your observations and group discussion, what seem to be the most important elements of the culture that newcomers need to adjust to?

2. Do you think your school doesn't communicate some aspects of the culture to newcomers? If so, why?

3. How is the introduction to a business organizational culture and department similar to, or different from, introduc- tion into a university and field of study?

Chapter 1 O Organizational Culture 377

ETHICAL DILEMMA

Culture of Deceit We have noted throughout this chapter, and the text

overall, that honesty is generally the best policy in manag-

ing 08.90 But that doesn't mean honest dealing is always

the rule in business.

Studies have found, in fact, that whole industries may

encourage dishonesty. In one experiment, subjects were

first asked either to think about their professional iden-

tities, or to complete a generic survey. They were then

asked to report on a series of coin flips; they were told in

advance that the more times the coin showed heads, the

more money they would make. The bankers who took

the generic survey were about as honest in reporting coin

flips as people who worked in other fields. The bankers

told to think about their professional identities, however,

exaggerated how often the coin turned up heads. People

in other professions didn't do so - the tie between pro-

fessional identity and dishonesty was unique to those

Who worked in banking. These results are certainly not

limited to the banking industry. Many other ways of prim-

ing people to think about financial transactions seem to

generate more dishonesty. Studies have also found that

many individuals feel pressured to engage in dishonest

behaviour to meet the bottom line. Whenever money is

under consideration, there are powerful motives.

Money motivations are strong in professional sports.

For example, the number of top leaders in Fl FA (world

soccer's governing body) who were indicted in 2015

suggests that behaving dishonestly has been accepted

within FIFA, and covering up for the dishonesty of oth-

ers has been encouraged. Domenico Scala, FIFA's audit

and compliance committee chair, noted, "To support the

change we need a culture that censures inappropriate

behaviour and enforces rules vigorously, fairly, and (is)

responsive." There is general consensus that to over-

come corruption, those in positions of authority must

demonstrate commitment to an ethical culture. As Scala

noted, "It is the leaders' tone that ensures it is embedded

at all levels of the organization. This must be honest and

communicated with sincerity in both words and actions."

There may well be a tendency to become d ishonest

when there is money to be made, so leaders may need

to be especially vigilant and communicate clear expecta-

tions for ethical behaviour.

Fortunately, evidence shows that asking people to

focus on relationships and the way they spend their time

can actually make them behave more honestly and help-

fully. This suggests that a focus on the social conse-

quences of our actions can indeed help to overcome

corruption.

Quest.ions

1. What are the negative effects of a culture that encourages dishonesty and corruption on its reputation and employees?

2. Why might some organizations push employees to behave in a dishonest or corrupt manner? Are there personal benefits to corruption that culture can counteract?

3. What actions can you take as a new employee if you are pressured to violate your own ethical stan- dards at work? How might mid-level employees' responses to this question differ from those of more senior managers?

CASE INCIDENTS

The Place Makes the People At Gerson Lehrman Group, you won't find an employee

working in a cubicle day after day.91 You also won't find

an employee working in a free-form open-office area

consistently either. The reason is that Gerson Lehrman

is invested in "activ ity-based working." In this system,

employees have access to cubicle spaces for privacy,

conference rooms for group meetings, cafe seating

for working with a laptop, and full open-office environ-

ments. Where you work on a particular day is entirely

up to you.

378 Part 4 Sharing the Organizational Vision

It may be hard to remember, but office allocations

were a uniform signal of hierarchical status and part of

organizational culture until fairly recently. As organizations

have become flatter and the need for creativity and flex-

ibility has increased, the "open-office" plan has become

a mainstay of the business world. The goal is to encour-

age free-flowing conversation and discussion, enhance

creativity, and minimize hierarchy - in other words, to fos-

ter a creative and collaborative culture and remove office

space from its status posit ion.

Research on open offices, however, shows there is a

downside. Open offices decrease the sense of privacy,

reduce the feeling of owning your own space, and create

a distracting level of background stimulation. As psychol-

ogy writer Maria Konnikova noted, 'When we're exposed

to too many inputs at once - a computer screen, music,

a colleague's conversation, the ping of an instant mes-

sage- our senses become overloaded, and it requires

more work to achieve a given result."

So is the act ivity-based hybrid described earlier a

potential solution? With its constantly shifting workspace

and lack of consistent locations, this may be an even less

controlled environment than an open office. However, it

does signal a culture that values the autonomy of indi-

vidual workers to choose their own best environment at

a particular time. The lack of consistency creates other

problems, though. Workers cannot achieve even the

modest level of personal control over any specific space

that they had with the open design. Design expert Louis

Lhoest notes that managers in an activity-based office

"have to learn to cope with not having people within their

line of sight.• This is a difficult transition for many manag-

ers to make, especially if they are used to a command-

and-control culture.

Whether a traditional, open, or activity-based design

is best overall is obviously hard to say. Perhaps the bet-

ter question is, which type will be appropriate for each

organization?

Quest.ions

1. How might different types of office design influ- ence employee social interaction, collaboration, and creativity? Should these be encouraged even in organizations without an innovative culture?

2. Can the effects of a new office design be assessed objectively? How could you go about measuring whether new office designs are improving the orga- nizational culture?

3. What types of jobs do you think might benefit most from the various forms of office design described

above?

Active Cultures Employees at many successfu l companies start the

day by checking the economic forecast.92 Patagonia's

employees start the day by checking the weather forecast.

The outdoor clothing company encourages its workforce

to take time from the work day to get outside and get

active. For Patagonia, linking employees with the natural

environment is a major part of the culture.

New hires are introduced to this mindset very quickly.

Soon after starting at Patagonia, marketing executive Joy

Howard was immediately encouraged to go fly fishing ,

surfing, and rock climbing all around the world. She notes

that all this vacationing is not just playing around- it's an

important part of her job. "I needed to be familiar with

the products we market," she said. Other practices sup-

port this outdoors-oriented, healthy culture. The com-

pany has an on-site organic cafe featuring locally grown

produce. Employees at all levels are encouraged through

an employee discount program to try out activewear in the

field. Highly flexible hours ensure that employees feel free

to take the occasional afternoon off to catch the waves or

get out of town for a weekend hiking trip.

Are there bottom-line benefits to this organizational

culture? Patagonia CEO Rose Marcano thinks so: "People

recognize Patagonia as a company that's .. . looking at

business through a more holistic lens other than profit.•

However, she is quick to add, "Profit is important ; if it

wasn't, you wouldn't be talking to me."

Patagonia's culture obviously makes for an ideal work-

place for some people - but not for others who don't

share its values. People who are just not outdoor types

would likely feel excluded . While the unique mission and

values of Patagonia may not be for everyone, for it s

Chapter 1 O Organizational Culture 379

specific niche in t he product and employment market,

the culture fits like a glove.

Questions

2. Does Patagonia use strategies to build its culture that you think could work for other companies? Is the company a useful model for others that are not so tied to a lifestyle? Why or why not?

3. What are the drawbacks of Patagonia's culture? 1. What key dimensions of its culture do you think

make Patagonia successful? How does the organi- zation help to foster this culture?

Might it sometimes be a liability, and if so, in what situations?

If you are looking for a job, you will want to choose an employer whose

culture is compatible with your values and in which you will feel comfort -

able. If you can accurately assess a prospective employer's culture before

you make your decision, you may be able to save yourself a lot of grief and

reduce the likelihood of making a poor choice. Similarly, you will undoubt -

edly have business transactions with numerous organizations during your

professional career. You will be trying to sell a product or service, negotiate

a contract, or arrange a joint venture, or you may merely be seeking out

which individual in an organization controls certain decisions. The ability to

assess another organization's culture can be a definite plus in successfully

completing these pursuits.

For the sake of simplicity, we will approach the problem of reading an

organization's culture from the point of view of a job applicant. We will

assume you are interviewing for a job. Here is a list of things you can do to

help learn about a potential employer's culture:

• Observe the physical surroundings. Pay attention to signs, pictures,

style of dress, length of hair, degree of openness between offices,

and office furnishings and arrangements.

• With whom did you meet? Just the person who would be your

immediate manager? Or potential colleagues, managers from other

departments, or senior executives? Based on what they revealed,

to what degree do people other than the immediate manager have

input into the hiring decision?

• How would you characterize the style of the people you met? For-

mal? Casual? Serious? Jovial?

• Does the organization have formal rules and regulations printed

in a human resource policy manual? If so, how detailed are these

polic ies?

• Ask questions of the people you meet. The most valid and reliable

information tends to come from asking the same questions of many

people (to see how closely their responses align) and by talking with

boundary spanners. Boundary spanners are employees whose work

How to "Read" an Organization's Culture The ability to read and assess an

organization's culture can be a

valuable skill.93

380 Part 4 Sharing the Organizational Vision

••••••••••

Practising Skills

links them to the external environment and includes jobs such as

human resources interviewer, salesperson, purchasing agent, labour

negotiator, public relations specialist, and company lawyer.

Questions that will give you insights into organizational processes and

practices might include the following:

• What is the background of the founders?

• What is the background of current senior managers? What are their

functional specializations? Were they promoted from within or hired

from outside?

• How does the organization integrate new employees? Is there

an orientation program? Training? If so, could you describe these

features?

• How does your manager define his or her job success? (Amount of

profit? Serving customers? Meeting deadlines? Acquiring budget

increases?)

• How would you define fairness in tenns of reward allocations?

• Can you identify some people here who are on the "fast track"?

What do you think has put them on the fast track?

• Can you identify someone who seems to be considered a deviant

in the organization? How has the organization responded to this

person?

• Can you describe a decision that someone made here that was well

received?

• Can you describe a decision that did not work out well? What were

the consequences for the decision maker?

• Could you describe a crisis or critical event that has occurred

recently in the organization? How did top management respond?

What was learned from this experience?

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

After spending your first three years after college graduation as a free-

lance graphic designer, you are looking at pursuing a job as an account

executive at a graphic design firm. You feel that the scope of assign-

ments and potential for technical training far exceed what you would be

able to do on your own, and you are looking to expand your skills and

meet a brand -new set of challenges. However, you want to make sure

you "fit" into the organization where you are going to be spending more

than eight hours every workday. What is the best way for you to find a

place where you will be happy, and where your style and personality will

be appreciated?

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

1. Do some comparisons of the atmosphere or feeling you get from various organizations. It will probably be easiest for you to do this exercise using restaurants, retail stores, or banks. Based on the atmosphere that you observe, what type of organizational culture do you think these organizations might have? If you can, interview three employees at each organization for their descriptions of their organization's culture.

2. Think about changes (major and minor) that you have dealt with over the past year. Perhaps these changes involved other people and perhaps they were personal. Did you resist the change? Did others resist the change? How did you overcome your resistance or the resistance of others to the change?

Chapter 1 O Organizational Culture 381

•••••••••••••••••••••

Reinforcing Skills

Leadership

0 Contrast leadership and management. 0 Summarize the conclusions of trait theories of

leadership.

e Identify the central tenets and main limitations of behavioural theories of leadership.

e Assess contingency theories of leadership by their level of support.

0 Contrast inspirational and responsible leadership.

382

Kelly Lovell has won many

awards for her work with

young entrepreneurs and helps business leaders better

understand the needs of

youth. What makes

0 f) 9 0 ~

a successful leader?

Identify the leadership roles available to nonmanagers.

Deline authentic leadership.

Discuss the requirements of ethical leadership.

Deline servant leadership.

Identify the challenges to our understanding of leadership.

. inc-. elly Lovell, founder and CEO of

Waterloo-based Lovell Corpora- tion, is a 25-year-old entrepre- neur who received her first recognition as a leader at age 19

'\l'\\' <\. \ il0 \\,

when she earned the Ontario Ministry of Citizenship & Immigration's Newcomer Champion Award, the Rogers' Young Woman of the Year Award, Ontario's Change the World Youth Ambassador Award, and the Kitchener-Watertoo Community Caregiver and Service Award.1 In 2016 Lovell was named Her Majesty Queen Elizabeth ll 's Young Leader of 2016-an award given to youth leaders from Commonwealth coun-

tries who have made a difference in their communities. In total she has won 15

awards for her leadership activities and has spoken at TEDx three

times. She also did much of this while earning an hon-

ours degrees in biomed- ical science and in

business adminis- tration from

Wes t e r n University.

Counesy of Lovell Ccxporafun

Lovell focuses on helping corporations develop effective youth marketing pro- grams and guides them in how best to engage youth with their products and ser-

vices. As well, she helps organizations develop employee retention strategies for Millennials and Generation Z. She also provides mentoring, skill develop- ment, and entrepreneurship coaching to young people.

Lovell is making a difference in the business community and the youth com- munity, and she has travelled to a variety of places around the wortd to lend people

her expertise. What kinds of leadership skills do people need to make a difference in the world? In this chapter, we review leadership studies to determine what makes an effective

leader. We consider factors that affect one's ability to lead and examine different leadership styles. Finally, we discuss challenges to our understanding of leadership.

\ I I

:'o': , ' , '

• Have you ever wondered if there was one right way to lead? 'l'IIE BIG IDEA • What are ways to practise leadership?

• Do perceptions of a leader matter? Kno\ving ho,,· Lo lead \vell does noL co1ne naLurally. EffecLiYe

leadership requires an undersLanding of ho,v

Lo inspire individuals Lo achieYe com1non goals.

383

•

384 Part 4 Sharing the Organizational Vision

O Contrast leadership and management.

f) Summarize the conclu- sions of trait theories of leadership.

leadership The ability lo influence a group toward !he achievement of a vision or set of goals.

trait theories of leadership The- ories !hat ooosider persooal qualities and characteristics that differentiate leaders from nonleaders.

What Is Leadership? We define leadership as lhe ability lo in fluence a group loward the achievemenl of a vision or sel of goals. Bul nol all leaders are managers, nor are all managers leaders. Just because an organizalion provides its managers with certain formal rights is no assurance they will lead effectively. leaders can emerge from with in a group as well as by formal appointment. Nonsanctioned leadership- the ab ility to influence that arises outside the formal structure of the organization- is often as important or more important than forma l influence.

Organizations need slrong leadership and slrong management for optimal effec- liveness. We need leaders to challenge the status quo, create visions of the future, and inspire organizational members lo achieve the visions. We need managers to formu- lale detailed plans, create efficient organizational slructures, and oversee day-lo-day operations.

In our discussion of leadership, we will focus on two major tasks of those who lead in organizations: managing those around them lo get the day-to-day tasks done, and inspiring others lo do the extraordinary. It will become clear thal successful leaders rely on a variety of interpersonal skills in order to encourage others to perform at their best. It will also become clear that, no mauer the place in the hierarchy, from CEO lo team leader, a variety of individuals can be called on to perform leadership roles. Think about your own defin ition of leadership as you participate in the Experiential Exercise- What ls Leadership? on page 409.

Leadership as Supervision In this section, we discuss theories of leadership that were developed before 1980. These early theories focused on the supervisory nature of leadership- that is, how individuals managed the day-to-day function ing of employees. The theories look different approaches in understanding how best lo lead in a supervisory capacity. The three gen- eral types of lheories lhal emerged were ( 1) lra it theories, which propose leaders have a parlicular set of lrails that makes them different from nonleaders; (2) behavioural theories, which propose thal particular behaviours make for beuer leaders; and (3) contingency theories, which propose the situation has an effect on leaders. When you th ink about these theories, remember that although they have been considered "theories of leadership: they rely on an older understanding ofwhal •leadership" means, and don't convey a dislinction between leadership and supervision.

Trait Theories: Are Leaders Different from Others? Have you ever wondered whether some fundamental personality difference makes some people "born leaders"? The search for personal ity, social, physical, or intellectual attributes that differen tiate leaders from nonleaders goes back to lhe earliest stages of leadership research. Trait theories of leadership focus on personal qual ities and characteristics. Leadership emergence and effecliveness are often evaluated separately vis-a-vis trait studies. Trail theory emerged in the hope that if it were possible to identify the tra its of leaders, il would be easier lo select people to fill leadership ro les. Being able to select good leaders is important because nol all people know how to be good leaders, as Focus on Research shows.

A comprehensive review of the leadership literature, organized around the Big Five framework, has found extraversion to be lhe mosl predictive lrail of effeclive leader- ship. 2 However, extraversion is more slrongly related to the way leaders emerge than lo their effectiveness. Sociable and dominant people are more likely to assert themselves in group situations, which can help extraverts be idenlified as leaders, but effeclive leaders are not domineering. One study found lhal leaders who scored very high in

FD c us ~NESEARCH Bad Bosses Everywhere

Doesn't leadership come naturally? Although much is expected of leaders, what is

surprising is how rarely they seem to meet the most basic definitions of effectiveness. 3

A recent study of 700 employees revealed that many believe their supervisors don't give

credit when it's due, gossip about them behind their backs, and don't keep their word.

The situation is so bad that for many employees, the study's lead author says, ''They don't leave their company, they leave their boss."

Key findings of the study are as follows:

• 39 percent said their supervisor failed to keep promises. • 37 percent said their supervisor failed to give credit when due.

• 31 percent said their supervisor gave them the "silent treatment" in the past year.

• 27 percent said their supervisor made negative comments about them to other employees or managers.

• 24 percent said their supervisor invaded their privacy.

• 23 percent said their supervisor blames others to cover up mistakes or minimize embarrassment.

Why do companies promote such people into leadership positions? One reason may be the Peter Principle. When people are promoted into one job (say, as a supervisor or

coach) based on how well they did another (say, salesperson or player), that assumes

that the skills of one role are the same as the other. The only time such people stop being promoted is when they reach their level of incompetence. Judging from the results of this

study, that level of leadership incompetence is reached all too often.

A recent study found that lack of respect for a leader by employees-for instance, when employees feel that the leader is not the best person for the job-has a significant impact

on whether employees will follow that leader. The researchers found that simply naming

• someone "the leader" did not by itself create effective leadership. 4 •.• . •..• . •.• . •.• . •.••

assertiveness, a facet of extraversion, were less effective than those who scored moder- ately high.5 So although extraversion can predict effective leadership, the relationship may be due to unique facets of the trail.

Unl ike agreeableness and emotional stability, which do not seem to predict leadership, conscientiousness and openness to experience may predict leadership, especially leader effectiveness. For example, one recent study indicated that top management teams that were high in conscientiousness positively influenced organi- zational performance through their leadership.6 Conscientiousness and extraversion are positively related 10 leaders' self-efficacy,7 and people are more likely to follow someone who is confident he or she is going in the right direction, allowing these leaders to emerge.

In sum, leaders who like being around people and are able lo assert themselves (extraverted), are disciplined and keep commitments they make (conscientious), and are creative and flexible (open) do have an advantage when it comes to leadership.

What about the Dark Triad personality trai ts of Machiavellianism, narcissism, and psychopathy (see Chapter 2)? Research indicates they are not all bad for leadership. A study in Europe and the United States found that normative (mid-range) scores on the Dark Triad personality tra its were optimal, while low (and high) scores were associ- ated with ineffective leadership. Furthermore, the s tudy suggested that high emotional s tability may actually accentuate the ineffective behaviours.8 However, higher scores on Dark Triad trai ts and emotional stab ility can contribute to leadership emergence.

Chapter 11 Leadership 385

386 Part 4 Sharing the Organizational Vision

9 Identify the central tenets and main limita- tions of behavioural theories of leadership.

behavioural theories of leadership Theories that propose that specific behaviours differentiate leaders from nooleaders.

initiating structure The extent to which a leader is likely to define and structure his or her role and the roles of employees in order to at1ain goals.

consideration The extent to which a leader is likely to have job relation- ships characterized by mutual trust, respect for employees' ideas, and regard for their feelings.

employee-oriented leader A leader who emphasizes interpersonal relations.

production-oriented leader A leader who emphasizes the technical or task aspects of the job.

Thankfully, both this study and other international research indicate that building self. awareness and self-regulation skills may be helpful for leaders to control the effects of their Dark Triad traits.9

Another trait that may indicate effective leadership is emotional intell igence (EI), discussed in Chapter 2. A core component of EI is empathy. Empathetic leaders can sense others' needs, listen to what followers say (and don' t say), and read the reactions of others. A leader who effectively displays and manages emotions will find it easier to influence the feelings of followers by expressing genuine sympathy and enthusiasm for good performance, and by showing irritation when employees fail to perform. JO

The link between EI and leadership effectiveness may be worth investigating in greater detail. 11 Research has also demonstrated that people high in EI are more likely to emerge as leaders, even after taking cognitive ability and personality into account. 12

Based on the latest findings, we offer two conclusions. First, we can say that traits can predict leadership. Second, traits do a beuer job at predicting the emergence of leaders and the appearance of leadership than in distinguishing between effective and ineffecrive leaders. 13 The fact that an individual exhibits the right traits and that others consider that person lo be a leader does not necessarily mean that the leader is successful at get- ting a group to achieve its goals.

Behavioural Theories: Do Leaders Behave in Particular Ways? Trait research provides a basis for select.ing the right people for leadership. In contrast, behavioural theories of leadership imply we could train people to be leaders. Case Incident- Leadership Mettle Forged in Battle on page 410 talks about how leadership learned in one field can be applied elsewhere.

The Ohio State Studies The most comprehensive behavioural theories resulted from the Ohio State Studies in the late 1940s, 14 which sought to identify independent dimensions of leader behav- iour. Beginning with more than a thousand dimensions, the studies narrowed the list to two that substantially accounted for most of the leadership behaviour described by employees: initiating structure and consideration.

Initiating structure is the extent to which a leader is likely to define and structure his or her role and those of employees in order to attain goals; it includes behaviour that attempts lo organize work, work relationships, and goals. A leader high in ini tiat- ing structure is someone who assigns followers particular tasks, sets defin ite s tandards of performance, and emphasizes deadlines.

Consider ation is the extent to which a leader's job relationships are characterized by mutual trust, respect for employees' ideas, and regard for their feel ings. A leader high in consideration helps employees with personal problems, is friendly and approach- able, treats all employees as equals, and expresses appreciation and support (is people- oriented). Most of us want lo work for considerate leaders- when asked to indicate the factors that most motivated them al work, 66 percent of employees mentioned appreciation. 15

The Michigan Studies Leadership studies at the University of Michigan's Survey Research Center had similar objectives to the Ohio Stale Studies: lo locate behavioural characteristics of leaders that appeared related to performance effectiveness. 16 The Michigan group identified two behavioural types: employee-oriented leaders, who emphasized interpersonal relations by taking a personal interest in the needs of employees and accepting indi- vidual differences among them; and production-oriented leader s, who emphasized the technical or task aspects of the job- focusing on accomplishing the group's task. These dimensions are closely related to the Ohio State dimensions. Employee-oriented

Indra Nooyi, CEO and board chairman of PepsiCo, is described as fun-loving, sociable, agreeable, con-

scientious, emotionally stable, and open to experiences. Recognized as one of the most powerful women in business, Nooyi's personal qualities and traits have contributed to her job performance and success.

leadership is similar to consideration, and production-oriented leadership is s imi lar to in itialing slructure. In fact, most leadership researchers use the terms synonymously.17

The results of testing behavioural theory studies have been mixed. However, one review found the followers of leaders high in consideration were more satisfied with their jobs, were more motivated, and had more respect for their leaders. Initia ting struc- ture was more strongly rela ted to higher levels of group and organization productivity and more positive performance evaluations.

[[ .,...,,.,. ]] RESEARCH FINDINGS: Behavioural Theories (.:-&' of Leadership

One study integrated the resu lts of 59 previous studies in order to determine the impact of specific leader behaviours on leadership effectiveness, group performance, and employee job satisfaction.18 Task-oriented behaviours explained 47.6 percent of the variance in group performance and 33.3 percent of the variance in overall leadership effectiveness. Change-oriented Lransformational leadership behaviours were also slrongly associated with group performance and overall effectiveness, explaining 28.5 percent and 22.5 percent, respectively, of the variance in these areas. Consideration behaviours (such as providing emotional support) had a smaller but still significant impact on performance and leadership effectiveness {16.6 percent and 19.5 percent of total vari- ance, respectively). Being supportive was associated with employee job satisfaction {21 percent of variance), bul providing a reward slruclure had a greater impact, explain- ing 43.9 percent of the variance in employee job satisfaction. These results suggest that while all of these leader behaviours are important, task-oriented behaviours are essential lo leadership effectiveness.

Summary of Trait Theories and Behavioural Theories In general, research indicates there is validity for both the Lrait and behavioural theories. Pans of each theory can help explain facets of leadership emergence and effectiveness.

Chapter 11 Leadership 3 87

388 Part 4 Sharing the Organizational Vision

e Assess contingency theories of leadership by their level of support.

Fiedler contingency model A leadership theory that proposes that effective group performance depends oo the proper match between the leader's style and the degree to which the situation gives the leader control.

least preferred co-worker (LPC) questionnaire An instrument that purports to measure whether a per- son is task or relationship oriented.

However, idenlifying the exact relationships is not a s imple Lask. The first difficulty is in correclly identifying whether a trail or a behaviour predicts a certain outcome. The second is in exploring which combinalions of traits and behaviours yield cerLain out- comes. The th ird challenge is to determine the causality of tra its to behaviours so that predictions toward desirable leadership outcomes can be made.

Leaders who have cerLain lraits desirable to Lheir posi tions and who display cullur- ally appropriale behaviours thal initiate slructure and show consideration do appear lo be more effeclive. Beyond that, the delerminalions are less clear. For example, perhaps you are wondering whether conscienlious leaders {lrail) are more likely to be slructuring (behaviour), and extra- verted leaders {trail) are more considerate (behaviour). Unfortunately, we are not sure there is a connection. Future research is needed.

As important as lrails and behaviours are in idenlifying effeclive or ineffective leaders, lhey do no t guarantee suc- cess. Some leaders may have the right traits or display the right behaviours and slill fail. Context mailers loo, which has given rise to the contingency theories we discuss next

Contingency Theories: Does the Situation Matter?

Have you e,·er \·vondered if

there was one right ~vay to

lead"?

Some tough-minded leaders seem to gain a lol of admirers when they take over strug- gl ing companies and lurn them around. However, predicting leadership success is more complex Lhan finding a few hero examples. Also, the leadership slyle Lhal works in very bad times does not necessarily lranslale into long-term success. When researchers looked at si tuational influences, it appeared that under condition a, leadership style x would be appropriate, whereas style y was more suilable for condilion b, and slyle z for condilion c. Bul what were conditions a, b, and c? We consider three situational theories: the Fiedler contingency model, Hersey and Blanchard's Siluational Leadership'", and path-goal theory.

The Fiedler Contingency Model Fred Fiedler developed the firsl comprehensive conlingency model for leadership. 19 The Fiedler contingen cy model proposes that group performance depends on the proper malch between Lhe leader's slyle and Lhe degree to which the situation gives the leader control. With the model, the individual's leadership style is assumed to be permanent. The least preferred co-worker {LPC) questionnaire idenlifies whether a person is r.ask-oriented or relationship-oriented by asking respondents to th ink of all the co-workers they have ever had and describe Lhe one they least enjoyed working with. If you describe this person in favourab le terms (a high LPC score), you are relationship oriented. If you see your leasl preferred co-worker in unfavourable lerms (a low LPC score), you are primarily inleresled in productivily and are task orienled.

After finding a score, a fil must be found between the organizational situation and the leader's style for Lhere lo be leadership effectiveness. We can assess the situation in lerms of three conlingency or silualional dimensions:

• Leader- member relati.ons. The degree of confidence, lrust, and respecl members have for their leader

• Tash structure. The degree lo which job assignments are procedurized ( thal is, slructured or unstructured)

• Position power. The degree of influence a leader has over power-based activities such as hiring, firing, discipline, promotions, and salary increases

According lo the model, the higher the task structure becomes, the more procedures are added; and the slronger the posilion power, lhe more conlrol the leader has. A very

favourable situation (in which the leader has a great deal of control) might include a payroll manager who has the respect and confidence of his or her employees (good leader-member relations); activities that are clear and specific- such as wage com- putation, payroll processing, and report filing (high task structure); and considerable freedom to reward and punish employees (strong position power). The favourable situ- ations are on the left side of the model in Exhibit 11-1. An unfavourable situation, to the right in the model, might be that of the disliked chairperson of a volunteer United Way fundraising team (low leader-member relations, low task structure, low position power). In th is job, the leader has very little control.

When faced with a category I, II, Ill, Vll, or VIII situation, task-oriented leaders perform better. Relationship-oriented leaders (represented by the solid line), however, perform bener in moderately favourable situations- categories IV, V, and VI.

How would you apply Fiedler's findings? You would match leaders with the type of situation- in terms of leader-member relations, task structure, and position power- for which they were best suited. Because Fiedler views an individual's leadership style as fixed, there are only two ways to improve leader effectiveness.

First, you can change the leader to fit the situation- as a baseball manager puts a right- or left-handed pi tcher into the game depending on the hitter. If a group si tuation rates as highly unfavourable bul is currently led by a relationship-oriented manager, the group's performance could be improved under a manager who is task oriented. The second alternative is lo change the situation lo fit the leader, by restructuring tasks or increasing or decreasing the leader's power lo control factors such as salary increases, promotions, and discipl inary actions.

Studies testing the overall val idity of the Fiedler model were initially supportive, but the model has not been studied much in recent years. While it provides some insights we should consider, its strict practical appl ication is problematic.

Hersey and Blanchard's Situational Leadership® Situational Leadership® ( SL) focuses on followers. SL says successful leadership depends on selecting the right leadership style contingent on the fo llowers' readiness,

EXHIBIT 11-1 Findings from the Fiedler Model

- - - - - - Task oriented

---Relationship oriented

Good

, I , I , ______ ....

Poor

Favourable Moderate

Category II 111 IV v

Leader- member relations Good Good Good Good Poor

Task structure High High Low Low High

Posit ion power Strong Weak Strong Weak Strong

, ,

, , , ,

Poor

High

Weak

, , ,

, , , , ,

/---- .-,

Unfavourable

VII VIII

Poor Poor

Low Low

Strong Weak

Chapter 11 Leadership 389

Situational leadership® (SL} A leadership theoiy that focuses on the readiness of followers.

390 Part 4 Sharing the Organizational Vision

path-goal theory A leaoorship theory that says it is the leader's job to assist followers in attaining their goals and to provide lhe necessary direction and/0< support to ensure that !heir goals are compatible with the overall objectives of the group°' 0<ganization.

•

or Lhe extenl to which they are willing and able lo accomplish a specific task. A leader should choose one of four behaviours, depending on follower read iness. This idea is illuslraled in Exhibit 11-2.

If followers are unable and unwilling to do a Lask, the leader needs lo give dear and specific directions; if lhey are unable and willing, the leader needs to disp lay high Lask orienlalion lo compensale for followers' lack of abil ily and high relalionship orienta- lion lo get them to "buy into• the leader's desires. If followers are able and unwilling, the leader needs to use a supportive and participalive slyle; if they are both able and willing, the leader does nol need lo do much.

SL has intuilive appeal. It ackno\vledges the importance of followers and builds on the logic that leaders can compensate for followers' limiled ab ility and molivation. Yet research efforts to test and support the theory have generally been disappoinling.20

Why? Possible explanalions include inlernal ambiguilies and inconsistencies in lhe model itself as well as problems wilh research methodology. So desp ite its inluitive appeal and wide popularily, any endorsement must be cautious for now.

Path-Goal Theory Developed by Universily ofToronto professor Martin Evans in the late 1960s and subse- quently expanded upon by Robert House (formerly at the University of Toronto, but now at the Wharton School of Business al the University of Pennsylvania), path-goal theory exlracts elemenls from the Ohio State leadership research on in itialing slruclure and consideralion and the expectancy theory of molivation.21 Path-goal theory suggests tha t it's the leader's job lo provide followers with the information, support, or other resources necessary to achieve their goals. {The lerm path-goal implies effeclive leaders clarify fol- lowers' paths to their work goals and make the journey easier by reducing roadblocks.)

Path-goal theory idenlifies four leadership behaviours that mighl be used in different s iluations to molivale individuals:

• The directive leader lets followers know what is expecled of them, schedules work to be done, and gives specific guidance as to how lo accompl ish tasks. This closely parallels the Ohio State dimension of in iliating structure. This behaviour is best used when individuals have difficulty do ing tasks or the

EXHIBIT 11-2 Hersey and Blanchard's Situational Leadership®

(High)

• ~ ::, .2 > .. ii a,

.!!-

~ .2 ~

.!!I .. "' t

leader Behaviours

(Low) _.•---+-------+, Task Behaviour +------+---.,_ (High) Follower Readiness

Able and w illing

High

R3 Able and unwilling/

apprehensive

Unable and wllllng

Moderate

R1 Unable and unwllllng/ lnsecuN

Low

EXHIBIT 11 -3 Path-Goal Theory

Leader Behaviour

• Directive

• Supportive

• Participative

• Achievement-oriented

• •

Environmental

• Task structure

• Fo rmal authority system

• Work group

• Performance ~~~~~~~~~~~~~1

• Satisfaction

Subordinate

• locus of control • Experience

• Perceived ability

tasks are ambiguous. ll would not be very helpful when used with individuals who are a lready high ly motivated, have the skills and abili ties to do the task,

and understand the requirements of the task.

• The supportive leader is friendly and shows concern for the needs of followers. This is essentially synonymous with the Ohio State dimension of consid- eration. This behaviour is often recommended when individuals are under stress, or otherwise show that they need to be supported.

• The participative leader consults with followers and uses their suggestions before making a decision. This behaviour is most appropriate \vhen individu- als need to buy in to decisions.

• The achievement-oriented leader sets challenging goals and expects followers to perform at their highest level. This behaviour works well with individuals who like challenges and are h ighly motivated. ll would be less effective with less capable individuals, or those who are highly stressed from overwork.

As Exhib it 11-3 illustrates, path-goal theory proposes two types of contingency vari- ables that affect the leadership behaviour-outcome relationsh ip: environmental variables that are outside the control of the employee and variables that are part of the personal characteristics of the employee. The theory proposes that employee performance and satisfaction are likely to be positively in fluenced when the leader compensates for what is lacking in either the employee or the work setting. However, the leader who spends

time explaining tasks when those tasks are already clear or when the employee has the ab ility and experience to handle them w ithout interference is likely to be ineffective because the employee will see such d irective behaviour as redundant or even insulting.

[[~ ]] RESEARCH FINDINGS: Path-Goal Theory ~ The match between leadership style and si tuation can be individualistic and ~ mercurial. Some tasks might be both stressful and highly structured, and

employees may have high ab ility or experience in some tasks and not others. Research has found that goal-focused leadership can lead to higher levels of emotional exhaus- tion for subordinates who are low in conscientiousness and emotional stability.22 This

Chapter 11 Leadership 3 91

392 Part 4 Sharing the Organizational Vision

O Contrast inspirational and responsible leadership.

charismatic leadership theory A leadership theory Iha! states Iha! followers make attn1>utions of heroic or extraordinary leadership abilities when they observe certain behaviours.

suggests that leaders who set goals enable conscientious followers to achieve higher performance but may cause s tress for employees who are low in conscientiousness.

Like SLT, path-goal theory has intuitive appeal, especially from a goal attainment perspective. Also like SLT, the theory can be only cautiously adop ted for application, but il is a useful framework in examining the important role of leadership.23

Case Incident- Leadership by Algorithm on pages 410- 411 explores ways lo learn how lo adapt your leadership style lo beuer fit the situation.

Inspirational Leadership

I Kelly Lovell inspires young people by relating stories from her early teenage years.24 She says that she struggled to find her voice, was bullied, and had poor self-esteem. She felt she was the butt of all jokes. Finally, she got involved in volunteer work.

Lovell attributes her success to her early experiences with volunteering and she encourages

young people to follow her lead. "Volunteering equipped me with the experiences and skills I was missing to attract the supporters I needed. It was through volunteerism [lhal] I was able

to understand my abilities because there is no pressure." Lovell's volunteer experience led her

to develop an app to help other young people track their volunteer opportunities, and also the leadership skills that they learn from these activities.

Lovell won the Queen's Young Leaders Award for 2016, an award given to 60 youth from Com- monwealth countries who are "taking the lead to transform the lives of others." Lovell was excited that this allowed her to meet the Queen, and she hopes the award will inspire the young people

she reaches out to. "To make it to Buckingham Palace strengthens my message of what is possible

I with passion and drive, and how far a person can go if they take their own future into their hands." What does it take to be an inspirational leader' The leadership theories we have d iscussed so far ignore the importance of the leader as a communicator who inspires others to act beyond their immediate self-in terests. In this section, we present two contemporary leadership theories with a common theme. They view leaders as individuals who inspire followers through their words, ideas, and behaviours. These theories are charismatic leadership and transformational leadership.

Charismatic Leadership The following individuals are often cited as being charismatic leaders: Frank Stronach of Aurora, O ntario-based Magna In ternational; Mogens Smed, CEO of Calgary-based DIRTT (Doing It Right This Time) Environmental Solutions; Pierre Trudeau, the late prime minister; Michaelle Jean, former Governor General; and Craig Kielburger, founder of WE Charily (formerly Free the Children). So what do they have in common?

What Is Charismatic Leadership? Max Weber, a sociologist, defined charisma (from the Greek word for "gift•) as "acer- tain quality of an individual personality, by virtue of which he or she is set apart from ordinary people and treated as endowed with supernatura l, superhuman, or al least specifica lly exceptional powers or qualities. These are not accessible lo the ordinary person and are regarded as of d ivine origin or as exemplary, and on the basis of them the individual concerned is treated as a leade r. •2s

The first researcher to consider charismatic leadership in terms of OB wa~ Robert House. According to House's charismatic leadership theo ry, followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviours, and tend to give these leaders power.26 A number of studies have attempted to identify the charac- teristics of the charismatic leader and have documented four- they have a vision, they are will ing to take personal risk~ to achieve that vision, they are sensitive lo followers' needs, and they exhibit extraordinary behaviours (see Exhibit 11-4 ).27 Recent research in Greece suggested that charismatic leadership increases follower organizational identification

EXHIBIT 11-4 Key Characteristics of Charismatic Leaders

1. Vision and articulation. Has a vision- expressed as an idealized goal- that pro- poses a future better than the status quo; and is able to clarify the importance of the vision in terms that are understandable to others.

2. Personal risk. Willing to take on high personal risk, incur high costs, and engage in self-sacrifice to achieve the vision.

3 . Sensitivity to followers' needs. Perceptive of others' abilities and responsive to their needs and feelings.

4. Unconventional behaviour. Engages in behaviours that are perceived as novel and counter to norms.

Sourr:e: Based on J. A. Conger and R. N. Kanungo, Charismatic Leadership In Organizations (Thousand Oaks, CA: Sage, 1998), p . 94.

( commiunent) by building a shared group identity among follo\vers.28 Other research

indicates that charismatic leadership may predict follower job satisfaction.29

Are the heroic qualities ascribed to charismatic leaders part of their DNA? Point/ Counterpoint on page 408 considers the question.

How Charismatic Leaders Influence Followers How do charismatic leaders actua lly influence fo llowers? They articulate an appeal- ing vis ion-a long-term strategy for how lo attain a goal by linking the present with a beuer future for the organization. Desirable visions fi t the limes and circumstances and reflect the uniqueness of the organization. Thus, followers are inspired nol only by how passionately the leader communicates-there musl be an underlying vision that appeals to followers as well.

A vision needs an accompanying vis ion statement, a forma l articu lation of an organization's vision or mission. Charismatic leaders may use vision statements to

imprint on followers an overarching goal and purpose. These leaders also set a tone of cooperation and mutual support. They build followers' self-esteem and confidence with high performance expectations and the bel ief that followers can attain them. Through words and actions, the leader conveys a new set of values and sets an example for fol- lowers to imitate.

Finally, the charismatic leader engages in emotion-inducing and often unconven- tional behaviour to demonstrate courage and convictions about the vision.

[[~ ]] RESEARCH FINDINGS: Charismatic Leadership ~ Charismatic leaders are able lo reduce stress for their employees, perhaps ~ because they help make work seem more meaningful and interesting.30

Some personalities are especially susceptible to charismatic leadership.31 For instance, an individual who lacks self-esteem and questions his or her self-worth is more likely to absorb a leader's d irection rather than establ ish an individual way of leading or think- ing. For these people, the si tuation may matter much less than the charismatic qualities of the leader. A recen t study found tha t it is possible for a person to learn how lo com- municate charismatically, which would then cause that person to be perceived more as a leader. People who are perceived to be charismatic show empathy, enthusiasm, and self-confidence; have good speaking and listening skills; and make eye contact.32

Research indicates that charismatic leadership works as followers "catch• the emo-

tions their leader is conveying.33 One study found employees had a stronger sense of personal belonging at \vork when they had charismatic leaders, and increased their

will ingness to engage in helping and compliance-oriented behaviours.34

Chapter 11 Leadership 393

vision A loog-term slrategy 10< attaining a goal or goals.

vision statement A formal articula- tion of an 0<ganization's vision or mission.

394 Part 4 Sharing the Organizational Vision

transactional leaders Leaders who guide or motivate their follow- ers in the direction of established goals by clarifying role and task requirements.

transformational leaders Leaders who inspire followers to transcend their own sett -interests and who are capable of having a profound and extra0<dinary effect on followers.

t €

I ! f'!l"'-.....1 -0 ~ "'-.........

Nick Woodman, founder and CEO of digital camcorder company GoPro, is a charismatic leader: energetic, enthusiastic, optimistic, confident, and extraverted. Woodman's charisma inspires his employees to work toward GoPro's vision of enabling people to share their lives through photos and videos.

The Dark Side of Charismatic Leadership Unfortunately, charismatic leaders who are larger than life don't necessarily act in the best interests of their organizations.35 Research has shown that individuals who are narcissistic are also higher in some behaviours associated with charismatic leadership. 36

Many charismatic- but corrupt- leaders have allowed their personal goals to override the goals of their organizations. Leaders at Enron, Tyco, WorldCom, and HealthSouth recklessly used organizational resources for their personal benefit and violated laws and ethics to inflate stock prices, and then cashed in millions of dollars in personal s tock options. Some charismatic leaders- Hitler, for example- are all too successful a t convincing their followers to pursue a disastrous vision. If charisma is power, then that power can be used for good- and for ill.

It's not that charismatic leadership isn't effective; overall, it is. But a charismatic leader isn't always the answer. Success depends, lo some extent, on the situation and on the leader's vision, and on the organizational checks and balances in place lo monitor the outcomes.

Transactional and Transformational Leadership Fiedler's contingency model, si tuational leadership theory, and path-goal theory describe transactional leaders- those who guide their followers toward established goals by clarifying role and task requirements. A stream of research has focused on differentiating transactional from transformational leaders,37 who inspire follow- ers lo transcend their self-interests for the good of the organization. Transformational leaders can have an extraordinary effect on their followers, who respond with increased levels of commitrnent.38 Richard Branson of the Virgin Group is a good example of a transformational leader. He pays attention to the concerns and developmental needs of individual followers; changes followers' awareness of issues by helping them to look at old problems in new ways; and excites and inspires followers to put out extra effort to achieve group goals. Research suggests that transformational leaders are most effective

EXHIBIT 11-5 Characteristics of Transactional and Transformational Leaders

Transactiona l Leader

Contingent Reward: Contracts exchange of rewards for effort, promises rewards for good performance, recognizes accomplishments.

Management by Exception (active): Watches and searches for deviations from rules and standards, takes correct action.

Management by Exception (passive): Intervenes only if standards are not met.

Laissez-Faire: Abdicates responsibilities, avoids making decisions.

Transformationa l Leader

Idealized Influence: Provides vision and sense of mission, instills pride, gains respect and trust.

Inspirational Motivation: Communicates high expectations, uses symbols to focus efforts, expresses important purposes in simple ways.

Intellectual Stimulation: Promotes intelligence, rationality, and careful problem solving.

Individualized Consideration: Gives personal attention, treats each employee individu- ally, coaches, advises.

Source: Republished with permission of Elsevier, from "Transactional to Transformational Leadership: Learning to Share the Vision", B. M. Bass, Organizational Dynamics, Winter 1990; permission conveyed through Copyright Clearance Center, Inc.

when lheir followers are ab le lo see the posilive impact of their work lhrough d irect in teraction with cuslomers or other beneficiaries.39 Exhibit 11-5 briefly identifies and defines the characleristics that differen tiate lransactional from lransformational leaders.

Transactional and transformational leadership complement each other; they are not opposing approaches lo gelling things done.40 Toe besl leaders are lransactional and lrans- formalional. Transformalional leadership builds on transactional leadership and produces levels of follower effort and performance that go beyond what transactional leadership alone can do. But the reverse is not lrue. So if you are a good lransactional leader bul do nol have lransformational qual ilies, you will likely only be a mediocre leader.

Full Range of Leadership Model Exhibi t 11-6 shows lhe full range of leadership model. Laissez-fa ire is the mos t

passive and therefore the least effeclive of the leader behaviours.41 Managemenl by exception- active or passive- is s lightly better than laissez-faire, bul il's slill considered

ineffective. Managemenl-by-exceplion leaders lend lo be avai lable only when there is a problem, which is oflen too !ale. Conlingenl reward leadership can be an effective style of leadership, bul will nol gel employees to go above and beyond the call of duty.

Only with the four remaining leadership styles- all aspects of lransformaliona l leadership- are leaders able to motivate followers to perform above expectations and lranscend their own self-in teresl for the sake of the organization. Individualized con- s ideration, intellectual slimulalion, inspirational motivation, and idealized influence (known as the "four ts•) all resu lt in exlra effort from employees, h igher produclivity, higher mora le and satisfaction, higher organizational effectiveness, lower turnover,

lower absenteeism, and greater organizational adaptability. Based on this model, leaders are generally mosl effective when they regularly use each of the four I's.

How Transformational Leadership Works Organizations with lransformational leaders generally have greater decenlralization of responsibi lity, managers with more propensity to take risks, and compensation plans

Chapter 11 Leadership 3 9 5

full range of leadership model A model that depicts se'Jen manage- ment styles on a continuum: laissez- faire, management by exception, contingent reward leadership, indi- vidualized consideration, intellectual stimulation, inspirational motivation, and idealized influence.

396 Part 4 Sharing the Organizational Vision

[[

EXHIBIT 11-6 Full Range of Leadership Model

Effective

Idealized Influence

Inspirational Motivation

Intellectual Stimulation

lndividualize:_j Consideration

•

Contingent Reward

Management by Exception

Laissez-Faire

Ineffective

geared toward long-term resu lts, all of which facilitate corporate entrepreneurship.42

One study of information-technology workers in China found empowering leadership behaviour led to feelings of positive personal control among workers, which increased their creativity al work.43 Other research in Germany found that transformational leadership positively influenced workers' creativity, but suggested leaders need to guard against dependent leader relationships, which lower employee creativity.44

Companies with transformational leaders often show greater agreement among top managers about the organization's goals, which yields superior organizational perfor- mance.45 The Israeli military have seen similar results, showing that transformational leaders improve performance by building consensus among group members.46

]] RESEARCH FINDINGS: Transformational Leadership Transformational leadership has been supported al diverse job levels and

• occupations (school principals, marine commanders, ministers, presidents of MBA associations, military cadets, union shop stewards, schoolteachers, sales reps). One study of research and development firms found that teams whose project leaders scored high on transformational leadership produced better-quality products as judged one year later and were more profitable five years later.47 A review of 117 studies testing transformational leadership found that it was related to higher levels of individual fol- lower performance, team performance, and organizational performance.48

The effect of transformational leadership on performance can vary by the situation. In general, transformational leadership has a greater impact on the bottom line in smaller, privately held firms than in more complex organizations.49 Transformational leadership can also vary depending on whether work is evaluated al the team or the individual level.50 Individual-focused transformational leadership is behaviour that empowers individual followers lo develop ideas, enhance their abilities, and increase self-efficacy. Team-focused transformational leadership emphasizes group goals, shared va lues and beliefs, and unified efforts. However, research in China suggested that, in

team situations, the members' identification with the group could override the effects of transformational leadership. 5t

Just as vision helps explain how charismatic leadership works, it also explains part of the effect of transformational leadership. The GLOBE study links a number of ele- ments of transformational leadership with effective leadership, regardless of country.52

The GLOBE team concluded that "effective business leaders in any country are expected by their subordinates to provide a powerful and proactive vision to guide the company into the future, strong motivational skills to stimulate all employees to fulfill the vision, and excellent planning skills to assist in implementing the vision. •53

Although vision is important in any culture, the way it is formed and communicated may need to be adapted. Transformational leadership may be more effective when lead- ers can directly interact with the workforce to make decisions than when they report to an external board of directors or deal with a complex bureaucratic structure. One study showed transformational leaders were more effective in improving group potency in teams higher in power distance and collectivism.54 Transformational leaders also obtain higher levels of trust, which reduces stress for followers. 55

Transformational leaders are more effective not only because they are creative, but also because they encourage those \vho follow them to be creative, too.56 Creativity and empowerment are key to organizational success, and transformational leaders are able to increase follower self-efficacy, giving the group a "can do• spirit.57 One s tudy looking at employee creativity and transformational leadership found employees with transfor- mational leaders had more confidence in their abil ity to be creative at work and realized higher levels of creative performance.58 Empowered followers are more likely to pursue ambitious goals, agree on the strategic goals of the organization, and believe the goals they are pursuing are personally important. 59

A recent study also distinguished between an individual employee's perception of leadership behaviours and the collective perception shared by a group of followers. The researchers found that transformational leadership consistently increased the number of organizational citizenship behaviours engaged in by employees. That effect was significantly stronger when the group as a whole agreed that the leader's behaviours were empowering. If only some individuals felt empowered, the positive impact was lessened considerably.60

We have seen that transformational leadership yields many desirable organizational outcomes. When comparing transformational leadership with transactional leadership, research indicates transformational leadership is more strongly correlated than transac- tional leadership with lower turnover rates, higher productivity, lower employee stress and burnout, and higher employee satisfaction.61 However, transformational leadership theory is not perfect. The full range of leadership model shows a clear division between transactional and transformational leadership that may not fully exist in effective lead- ership. Contrary to the full range of leadership model, the four l's in transformational leadership are not always superior in effectiveness to transactional leadership; contin- gent reward leadership, in which leaders dole out rewards as certain goals are reached by employees, sometimes works as well as transformational leadership. More research is needed, but the general supportable conclusion is that transformational leadership is desirable and effective, given the right application.

Transformational vs. Charismatic Leadership In considering transformational and charismatic leadership, you surely noticed some commonalities. There are differences, too. Charismatic leadership places somewhat more emphasis on the way leaders communicate ( are they passionate and dynamic7), while transformational leadership focuses more on what they are communicating (is it a com- pelling vision?). Still, the theories are more alike than different. Al their heart, both focus on the leader's abil ity to inspire followers, and sometimes they do so in the same way. Because of this, some researchers believe the concepts are somewhat interchangeable.

Chapter 11 Leadership 3 97

3 9 8 Part 4 Sharing the Organizational Vision

I\ 0 l' ~ CAREER OBJECTIVES

L~ How Can I Get My Boss to Be a Better Leader? My boss is the CEO, and she's a gossipy, in-your-business over- sharer. She's always asking our t op management team personal questions a nd sharing informa- t ion with anyone. The other day, I caught her emailing my colleague about my salary and career pros- pects! What should I do about her poor leadership?

- Phil

Dear Phil: Nobody likes an oversharer! Perhaps your boss isn't aware of the impact of her behaviour and thinks she is just being friendly. Assuming this is the case, you might be able to make her think first before sharing. If you're comfortable addressing her, you may suggest a private meeting to discuss your concerns. You should bring a list of the types of information she solic- its and shares-with an example or two- and, if she is open to discus- sion, problem-solve with her about her habit. She may see that her "open book" approach is undermining her leadership effectiveness.

Another tactic might start with your researching the best privacy practices,

laws, and business guidelines. Be sure to source your organization's HR handbook for any mentions of privacy expectations. Then in your meet- ing you could present your research findings.

With both direct approaches, you run the risk of offending your boss, which may very well happen if she becomes embarrassed. Moreover, she may defend her behaviour if her over- sharing is actually strategic gossip and not see the problem, which could have ramifications for what she then thinks and says about you!

These approaches still might be worth trying, but from what you 've said about her, it's highly unlikely she will change her general behaviour. Research indicates that her personal tendencies will prevail over time. It sounds like she is extraverted, for instance- you're not going to change that. She may be clever and manipula- tive, purposefully leveraging her infor- mation for personal gain without a concern for others (high-Machiavellian or narcissistic). In that case sett-aware- ness can help, but her behaviour won't change unless she is willing to practise sett-regulation.

Responsible Leadership

Perhaps most importantly, it doesn't seem that you like your boss. This may be a real problem that you cannot surmount. How are you going to build a relationship of trust with her, trust that will be needed for you to continue to feel motivated and work hard? Unfortunately, if you cannot thrive in this environment, it may be best to move on.

Good luck for your best possible

outcome!

Sources: Based on A. E. Colbert, M. R. Barrick, and 8. H. Bradley, "Personal~y and Leader- ship Composition in Top Management Teams: Implications for Organizational Effectiveness," Personnel Psychology 67 (2014), pp. 351-387; R. 8 . Kaiser, J. M. LeBreton, and J . Hogan, "The Dark Side of Personaity and Extreme Leader Behavior," Applied Psychology: An Inter- national Review 64, no. 1 (2015), pp. 55-92; and R. Walker, "A Boss Who Shares Too Much," The New York Times, December 28, 2014, p. 7.

The opinions provided here are of the manag· ers and authors Ollly and do not necessarily reflect those of their organizations. The authors or managers are not responsible for any errors or omissions, or for the results obtained from the use of this information. In no event wlll the authors or managers, or their related partner· ships or corporations thereof, be liable to you or anyone else for any decision made or action taken in reliance on the opinions provided here.

O Identify the leader- ship roles available to nonmanagers. I Kelly Lovell, who has dedicated her career to helping empower Millennials, explains what effective leadership means to her.62 "If you want to make a change there is no better way to do

so than doing it yourself. And with time, the attraction will all be organic. Stop listening to no; society is full of negativity. Your focus should be to use the doubts as a pivot. Hence, motivating

yourself to make your plans work."

I Lovell is an example of an authentic leader who knows who she is and what she believes and acts on her values and beliefs. How important is authentic leadership' What is authentic leadership? Is there an ethical dimension to leadership? What is seivant leadership? What is the leader's role in mentoring? In this section, we briefly address these contemporary issues in leadership.

Authentic leadership Campbell Soup's CEO Denise Morrison decided lo lower sodium in the company's soup products s imply because il was the right th ing to do.63 Kath leen Taylor, chair of the Royal Bank of Canada {RBC), believes that being a successful leader requires being authentic: "authentic leaders build meaningful relationships that yield far beuer results than command and control of the past:64

Authentic leadership focuses on the moral aspects of being a leader. Authentic leaders know who they are, know what they believe in, and act on those values and bel iefs openly and candidly. Their followers consider them to be ethical people. The primary quality produced by authentic leadership is trust. Authentic leaders share infor- mation, encourage open communication, and stick lo their

What are ways to practise

leadership'!

ideals. The resu lt: People come to have faith in them. Related to this behaviour is the concept of humbleness, another characteristic of being authentic. Research indicates that leaders who model humility help followers lo understand the growth process for their own development.Gs

Authentic leadership, especially when shared among top management team mem- bers, creates a posi tive energizing effect that heightens firm performance.66 Transforma- tional or charismatic leaders can have a vision and communicate it persuasively, bul sometimes the vision is wrong (as in the case of Hitler), or the leader is more concerned with his own needs or pleasures, as in the case of President Donald Trump.67 Authentic leaders do no t exhibit these behaviours. They may also be more likely to promote cor- porate social responsibil ity (CSR).

Ethical leadership Leadership is not value free. In assessing ils effectiveness, we need to address the means a leader uses to achieve goals as well as the content of those goals. The role of the leader

Entrepreneur Grace Liu {third from the right, in the first row) is an authentic leader. Shown here wijh her employees, Liu is co-founder and managing director of Asianera, a maker of hand-painted bone china

She built her successful business of high-qualfy porcelain and innovative design based on her strong personal core values of respecting the individual and operating with integrity.

Chapter 11 Leadership 399

f) Define authentic leadership.

Ci) Discuss the require- ments of ethical leadership.

authentic leaders Leaders who know who they are, know what they believe in and value, and act on these values and beliefs openly and can- didly. Their followers could consider them to be ethical people.

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0 Define servant leadership.

socialized charismatic leadership A leadership concept that states that leaders convey values that are other-centred vs. self-centred and who model ethical conduct.

servant leadership A leadership style marked by going beyood the leader's own self-interest and instead focusing on opportunities to help fol- lowers grow and develop.

in creating the eth ical expectations for all members is crucial.68 Ethical top leadership influences not only direct followers but all the way down the command structure as well, because top leaders create an ethical culture and expect lower-level leaders to behave along ethical guidelines.69 Leaders rated as highly ethical tend to have followers \vho engage in more organizational citizenship behaviours ( OCBs) and who are more will ing to bring problems to the leaders' allention.70 Research also found that ethical leadership reduced interpersonal conflicts. 71

Eth ical and authentic leadership intersect al a number of junctures. Leaders who treat their followers ethically and authentically- with fairness, especially by providing honest, frequent, and accurate information- are seen as more effective.72

Transformational leadership has ethical impl ications since these leaders change the way followers think. Charisma, too, has an ethical component. Uneth ical leaders use their charisma lo enhance power over followers, directed toward self-serving ends. To integra te ethical and charismatic leadership, scholars have advanced the idea of socialized char ismatic leadersh ip-conveying other-centred ( not self-centred) values through leaders who model ethical conduct.73 Charismatic leaders are able to bring employee values in line with their own values through their words and actions.74

Although every member of an organization is responsible for eth ical behaviour, many initiatives aimed at increasing organizational ethical behaviour are focused on the leaders. Because top executives set the moral tone for an organiza tion, they need to set high eth ical standards, demonstrate them through their own behaviour, and encourage and reward integrity in others while avoiding abuses of power. One recent research review found that role modelling by top leaders positively influenced man- agers throughout their organizations to behave ethically and fostered a climate that reinforced group-level ethical conduct. The findings suggest that organizations should invest in ethical leadership training programs, especially in industries with few ethical regulations. Leadership train ing programs that incorporate cultural values should be especially mandated for leaders who take foreign assignments or manage multicultural work teams.75 Read the Ethical Dilemma on page 409 and consider how personal, work, and social values and work ethics intersect.

For ethical leadership to be effective, it's not enough for the leader lo simply possess high moral character. After all, no universa l standard for ethical behaviour exists, and ethical norms vary by culture, by industry, and even sometimes within an organization. Leaders must be willing to express their eth ical belief.~ and persuade others lo follow their standards. Followers must bel ieve in both the leader and the overlying principles, even if they don't personally agree with every minor stance.

To convey their beliefs, leaders should learn to express their moral convictions in s tatements that reflect va lues shared with their organization's members. Leaders can build on this foundation of trust to show their character, enhance a sense of unity, and create buy-in from fo llowers. The leader's message should announce high goals and express confidence that they can be reached.

Servant Leadership Scholars have recently considered ethical leadership from a new angle by examining servant leader ship. 76 Servant leaders go beyond their self-interest and focus on oppor- tunities to help followers grow and develop. Characteristic behaviours include listening, empathizing, persuading, accepting stewardship, and actively developing fo llowers' potential. Because servant leadership focuses on serving the needs of others, research has focused on its outcomes for the well-being of followers. Perhaps not surprisingly, a study of 126 CEOs found that servant leadership is negatively correlated with the trait of narcissism. 77

Craig Kielburger was just 12 years old when he read abou1 a young Pakistani boy of the same age who

was murdered while engaged in child labour, and rallied his d assmates to become involved in stopping the practice. This work eventually led to the creation of Free the Children (now WE Charity). WE Charity supports community development in nine countries where there is a high rate of child labour, child exploita-

tion, and minimal opportunities for girls. Kielburger is an example of someone showing ethical leadership

at a very early age.

What are the effects of servant leadership? One study of 123 supervisors found il resulted in higher levels of commitment to the supervisor, self-efficacy, and percep- tions of justice, all of which were rela ted lo OCB.78 This relationship between servant

leadership and follower OCB appears to be stronger when followers are encouraged lo focus on being dutiful and responsible.79 Second, servant leadership increases team potency (a belief lhat one's learn has above-average skills and abilities), which in

turn leads lo h igher levels of group performance.80 Third, a s tudy wilh a nationally representative sample found higher levels of OCB were associated with a focus on growth and advancement, which in turn was associated wilh higher levels of creative

performance.81 Olher research found that servant leadership and a resulting culture of serving increased employee job performance and creativity, while reducing turnover inlentions.82

Mentoring Many leaders take responsibility for developing future leaders through mentoring relationships. A mentor is often a senior employee who sponsors and suppons a less-experienced employee ( a men tee), bul mentoring can happen much lower in lhe organization as well. The mentoring ro le includes coaching, counselling, and sponsor- ship to help menlees develop ski lls, to provide support and help bolster mentees' self- confidence, and to lobby so lhal men tees get good assignments, promotions, and salary increases.83 Al lo\ver levels in lhe organization, mentors can help new employees learn to be successful. Successful mentors are good teachers. They present ideas clearly, listen well, and empathize wilh mentees' problems.

In formal mentoring relationships, protege candidates are identified according to assessments of leadership potentia l, and then matched wilh leaders in corresponding organizational functions. Informal mentoring relationships develop when leaders

Chapter 11 Leadership 401

mentor An employee who sponsors and supports a less-experienced employee.

402 Part 4 Sharing the Organizational Vision

Ed Clari< (right), who stepped down as CEO of TD Bank in October 2014, spotted something in Bharat Masrani (left) the first time he met him in 2002. Clari< soon became Masrani's mentor and champion,

providing him with a variety of career opportunities. The mentoring paid off, as Masrani became Clar1<'s

successor.

identify a less experienced, lower-level employee who appears to have potential for future development.84 The mentee will often be tested with a particularly challenging assignment. If he or she performs acceptably, the mentor will develop the relationship, informally showing the mentee how the organization really works outside its formal structures and procedures.

Are all employees in an organization equally likely to participate in a mentor- ing relationship? Unfortunately, no.85 One study in South Korea found that mentors achieved higher levels of transformational leadership as a result of the process, while organizational commitment and well-being increased for both mentors and mentees.86

Although begun with the best intentions, formal relationships are not as effective as informal ones, 87 perhaps due 10 poor planning, design, and communication. Men- tors must see the relationship as beneficial to themselves and the mentee, too, must have input into the relationship.88 Formal mentoring programs are also most likely to succeed if they appropriately match the work style, needs, and ski lls of men tee and mentor.89

Mentors may be effective not because of the functions they provide, but because of the resources they can obtain; a mentor connected to a powerful network can build relationships that will help the protege advance. Network ties, whether built through a mentor or not, are a significant predictor of career success.90 If a mentor is not well connected or not a very strong performer, the best mentoring advice in the world will not be very beneficial.

You might assume that mentoring is valuable for objective o utcomes such as compensation and job performance, but research suggests the gains are primarily psychological. Thus, while mentoring can have an impact on career success, it's not as much of a contributing factor as ab ility and personality. It may feel nice to have a mentor, but it does not appear that having a mentor, or even having a good mentor who provides both support and advice, is critical to one's career. The mentor is a boost to your confidence.

Challenges to Our Understanding of Leadership Kelly Lovell works with business leaders to help them understand Generation Z reten tion

issues.91 "Generation Z want to be spoken with versus atby companies. We want to be involved, have some sense our voice and opinion matters. We gravitate to opportunities with companies

where our ideas can be recognized and heard," she says.

Lovell recently wrote a book, The Power of YOUth, to help inspire young people to take action using stories of 200 young people who have taken action and made a d~ference. She hopes the

book will help young people see their potential. "It is my hope that after reading a story, a youth can

think, 'If they can overcome these challenges to make a difference, then I can, too,"' Lovell says.

"In the 1500s, people ascribed all evenL~ they d idn't understand to God. Why d id the crops

fail7 God. Why did someone d ie? God. Now our all-purpose explanation is leadership. "92

This may be an astute obseivation from management consulting, but of course much of an organization's success or failure is due to factors outside the influence of leadership. Sometimes it's a matter of being in the right or wrong place at a given time. In this section,

we present challenges to the accepted beliefs about the value of leadership.

Leadership as an Attribution As you may remember from Chapter 2, attribution theory examines how people try to make sense of cause-and-effect relationships. The attribution theo ry of leadership says leadership is merely an attribution people make about other individuals. 93 We attribute the fo llowing to lead- ers: in telligence, outgoing personality, strong verbal skills, aggressiveness, understanding, and industriousness.94 At the organizational level, we tend, rightly or wrongly, to

see leaders as responsible for both extremely negative and extremely positive performance.95

Do perceptions of a leader

matter .. ?

Perceptions of leaders by their followers strongly affect leaders' ab ility to be effec- tive. First, one study of 128 major US corporations found that whereas perceptions of CEO charisma did not lead to objectively beuer company performance, company performance did lead to perceptions of charisma.96 Second, employee perceptions of leaders' behaviours are significant predictors of whether they blame the leader for fail- ure, regardless of how the leader assesses him- or herself.97 Third, a study of more than 3000 employees from Western Europe, the United States, and the Middle East found people who tended to •romanticize" leadership in general were more likely to bel ieve their own leaders were transformationaJ.98

We also make demographic assumptions about leaders. Respondents in a study assumed a leader described with no identifying racial information was white at a rate beyond the base rate of white employees in that company. Furthermore, where identical leadership situations are described but the leaders' race is manipulated, white leaders are rated as more effective

than leaders of other racial groups.99 One large-scale summary study (a meta-analysis) found that many individuals hold stereotypes of men as having more leadership charac- teristics than women, although, as you m ight expect, this tendency to equate leadership with masculinity has decreased over time.100 Other data suggest women's perceived success

as transformational leaders may be based on situations. Teams prefer male leaders when aggressively competing against other teams, but they prefer female leaders when the com- petition is within teams and calls for improving positive relationships with in the group. JOI

Attribution theory suggests what is important is projecting the appearance of being a leader rather than focusing on actual accomplishnienr.s. Leader-wannabes who can shape the perception that they are smart, personable, verbally adep t, aggressive, hard-working, and consistent in their style can increase the probabil ity their bosses, co lleagues, and

employees will view them as effective leaders.

Chapter 11 Leadership 403

Cii) Identify the challenges to our understanding of leadership.

attribution theory of leadership A leadership lheo,y that says !hat leadership is merely an attribution !hat people make about olher individuals.

4 0 4 Part 4 Sharing the Organizational Vision

substitutes Attributes. such as experience and training, !hat can replace !he need for a leader's sup- port or ability to create structure.

neutralizers Attributes that make it impossible for leader behaviour to make any difference to follower outcomes.

identif ication-based trust Trust based on a mutual understanding of each other's intentions and appre- ciation of each other's wants and desires.

Substitutes for and Neutralizers of Leadership One theory of leadership suggests that in many si tuations, leaders' actions are irrel - evant. 102 Experience and tra ining are among the substitutes that can rep lace the need fo r a leader's support or abil ity to create structure. Organizations such as videogame producer Valve Corpora tion, Gore-Tex maker W. L. Gore, and collaboration-software firm GitHub have experimented with el iminating leaders and management. Governance in the •bossless• work environment is achieved through accountabil ity to co-workers, who determine team composition and sometimes even pay. 103 Organizational charac- teristics such as expl icit formal ized goals, rigid rules and procedures, and cohesive work groups can replace formal leadership, whi le indifference to organizational rewards can neutralize its effects. Neutralizers make it impossible for leader behaviour to make any difference to fo llower outcomes (see Exhibit 11-7).

Sometimes the difference between substitutes and neutralizers is fuzzy. If I am working on a task that is intrinsically enjoyable, theory predicts leadership will be less important because the task provides motivation. But does that mean intrinsically enjoyable tasks neutral ize leadership effects, or substitute for them, or both? Another problem is that while substitutes for leadership (such as employee characteris tics, the nature of the task, etc.) matter to performance, that doesn't necessari ly mean leadership doesn't matter. 104 H's s implistic to th ink employees are guided to goal accompl ishments solely by the actions of their leaders. We have introduced a number of variables- such as altitudes, personality, abil ity, and group norms- that affect employee performance and satisfaction. Leadership is s imply another independent variable in our overall OB model.

Online Leadership How do you lead people who are physically separated from you with whom you com- municate electronically? This question needs atten tion from OB researchers. 105 Today's managers and their employees are increasingly being linked by networks rather than geographical proximity.

We propose that onl ine leaders have to think carefully about what actions they want their digi tal messages to initiate. They confront unique challenges, the greatest of which appears to be developing and maintaining trust. Identification-based trust,

EXHIBIT 11-7 Substitutes for and Neutralizers of Leadership

Defining Characteristics

Individual

Experience/training Professiona lism Indifference to rew ards

Job

Highly structured task Provides its ow n feedback Intrinsically satisfying

Organizat ion

Explicit formalized goals Rigid rules and procedures Cohesive w ork groups

Relationship· Oriented leadership

No effect on Substitutes f or Neutralizes

No effect on No effect on Substitutes for

No effect on No effect on Substitutes f or

Task- Oriented leadership

Substitutes f or Substitutes f or Neutralizes

Substitutes for Substitutes for No effect on

Substitutes f or Substitutes f or Substitutes f or

Source: Based on K. B. Lowe and W. L. Gardner, "Ten Years of lhe Leadership Quarterly: Contributions and Challenges for the Future," Leadership Quarterly 11, no. 4 (2000), pp. 459-514.

based on a mutual understanding of each other's intentions and appreciation of the other person's wants and desires, is particularly difficu lt to achieve without face-to-face interaction. JOG Online negotiations can also be hindered because parties tend to express lower levels of trust. w7

We believe good leadership skills will soon include the abil ity to communicate sup- port, trust, and inspiration through electronic communication and to accurately read emotions in others' messages. In electronic communication, writing skills are likely to become an extension of interpersonal skills in ways that are not yet defined.

How to lead Most of the research discussed in this chapter was conducted in Engl ish-speaking coun- tries. We know very li ttle abou t how culture might influence the va lidity of the theories, particularly in Eastern cultures. However, a recent analysis of the GLOBE research pro- gram (see Chapter 3 for more details) has produced some useful preliminary insights about how to manage in Brazil. France, Egypt, and China. JOS Let's consider each.

• Brazil. Based on the values of Brazilian employees, a manager leading a team in Brazil would need to be team oriented, participative, and humane. Leaders high on consideration who emphasize participative decision making and have high LPC scores would be best sui ted to managing employees in th is culture. As one Brazilian manager said in the study, "We do not prefer leaders who take self-governing decisions and act alone without engaging the group. That's part of who we are."

• France. French employees have a more bureaucratic view of leaders and are less likely to expect them to be humane and considerate than Canadian and American employees. A leader high on initialing s tructure ( relatively task ori- ented) will do best and can make decisions in a relatively autocratic manner. A manager who scores high on consideration (people oriented) may find that s ty le backfiring in France.

• Egypt. Employees in Egypt are more likely to va lue team-oriented and partici- pative leadership than Canadian and American employees. However, Egypt is also a relatively high-power-distance culture, meaning status differences between leaders and followers are expected. To be participative yet demon- strate one's s tatus, the leader should ask employees for their opinions, try to minimize conflicts, and not be afraid to take charge and make the final deci- sion (after consulting team members) .

• China. According to the GLOBE study, Chinese culture emphasizes being pol ite, considerate, and unselfish, but it also has a high performance orienta- tion. These two factors suggest consideration and initiating structure may both be important. Although Chinese culture is rela tively participative compared with the cultures of Canada and the United States, there are also s tatus differ- ences between leaders and employees. These find ings suggest that a moder- ately participative style may work best with Chinese employees.

Servant leadership Servant leadership may be more prevalent and effective in certain cultures. w9 When asked to draw images of leaders, for example, US subjects tended to draw them in front

Chapter 11 Leadership 405

406 Part 4 Sharing the Organizational Vision

LESSONS LEARNED

• Leaders provide vision and strategy; managers imple- ment that vision and strategy.

• Leaders need to have a vision, they need to commu- nicate that vision, and they must have followers.

• Leaders need to adjust their behaviours, depending on the s ituation and the needs of employees.

Mylab Management

of the group, giving orders to followers. Singaporeans tended to draw leaders at the back of the group, acting more to gather a group's opinions together and then unify them from the rear. This suggests the East Asian prototype is more like a servant leader, which might mean servant leadership is more effective in these cultures. --- Summary Leadership plays a central pan in understanding group behaviour because it's the leader \vho usually directs us toward our goals. Knowing what makes a good leader should thus be valuable toward improving group performance. The Big Five Personal ity Model shows strong and consistent relationships between personality and leadership. The behavioural approach's major contribution was narrowing leadership into task-oriented {initiating structure) and people-oriented ( consideration) styles. By considering the situ- ation in which the leader operates, contingency theories promised to improve on the behavioural approach. Contemporary theories have made major contributions to our understanding of leadership effectiveness, and studies of ethics and positive leadership offer exciting promise.

SNAPSHOT SUMMARY

What Is Leadership? • Contingency Theolies: Does • Servant Leadership the Situation Mattel? • Mentoring

Leadership as Supervision

• Trait Theories: Are Leaders Inspirational Leadership Challenges to Our Different from Others? • Charismatic Leadership Understanding of

• Behavioural Theories: Do • Transactional and Leadership Leaders Behave in Particular Transformational Leadership • Leadership as an Attribution Ways? • Substitutes for and

• Summary of Trait Theories Responsible Leadership Neutralizers of Leadership and Behavioural Theories • Authentic Leadership • Online Leadership

• Ethical Leadership

Study, practise, and explore real business situations with these helpful resources:

• Study Plan: Check your understanding of chapter concepts with self-study quizzes.

• Online Lesson Presentations: Study key chapter topics and work through interactive assessments to test your knowledge and master management concepts.

• Videos: Learn more about the management practices and strategies of real companies.

• Simulations: Practise management decision-making in simulated business environments.

.,. for Review

1. How are leadership and man- agement different from one

another?

2. What are the conclusions of trait theories of leadership?

3. What are the central tenets and main limitations of behavioural theories of leadership?

4. What are the contingency theo- ries of leadership?

5. How do inspirational and responsible leadership compare

and contrast?

6. What leadership roles are avail- able to nonmanagers?

7. What is authentic leadership?

8. What are the requirements of ethical leadership?

9. What is servant leadership? How does it make a difference in organizations?

10. What challenges do we face in understanding leadership?

for Managers

• For maximum leadership effec- tiveness, ensure that your prefer- ences on the initiating structure and consideration dimensions are a match for your work dynamics and culture.

• Hire candidates who exhibit transformational leadership quali- ties and who have demonstrated success in working through oth- ers to meet a long-term vision. Personality tests can reveal candi- dates higher in extraversion, con- scientiousness, and openness, which may indicate leadership readiness.

• Hire candidates whom you believe are ethical and trustwor- thy for management roles, and train current managers in your organization's ethical standards in order to increase leadership effectiveness.

• Seek to develop trusting relation- ships with followers because, as organizations have become less stable and predictable, strong bonds of trust are replac- ing bureaucratic rules in defining expectations and relationships.

• Consider investing in leadership training such as formal courses, workshops, and mentoring.

for You

• It's easy to imagine that theories of leadership are more important to those who are leaders or who plan in the near future to become leaders. However, leadership opportunities occur throughout an organization. You have no doubt seen a student leader who did not have any formal authority be extremely successful.

• Leaders are not born, they learn how to lead by paying attention to the situation and what needs to be done.

• There is no one best way to lead. It's important to consider the situ- ation and the needs of the people who will be led .

• Sometimes no leader is needed - the individuals in the group simply work well enough together that each takes turns at leadership without appointing a formal leader.

0 ICll:I

"' -

408 Part 4 Sharing the Organizational Vision

HEROES ARE MADE, NOT BORN -"' CCI 0 POI NT

We often ascribe heroic qualities to our leaders. 110 They

are courageous in the face of great risk. They persevere

when few would. They take action when most sit by.

Heroes are exceptional people who display exceptional

behaviour.

But some social psychologists question this conven- tional wisdom. They note that heroism can be found in

many spheres of life, including in the behaviour of whis-

tle-blowers, explorers, religious leaders, scientists, Good

Samaritans, and those who beat the odds. At some

time in our lives, we all show heroism when the situation

allows us to. If we want to see more heroic behaviour, we need to create more situations that produce it.

Stanford psychologist Philip Zimbardo goes even fur-

ther to argue that our romantic view that heroes are born

is misplaced:

The banality of evil is matched by the banality of heroism. Neither is the consequence of disposi-

tional tendencies. . . . Both emerge in particular

situations at particular times, when situational

forces play a compelling role in moving individuals

across the line from inaction to action.

People exhibit brave behaviour every day. The work- ers who risked their lives to contain Japan's earthquake-

ravaged nuclear reactors in 2011 are a great example.

Thus, we err when we think leaders are uniquely posi-

tioned to behave heroically. We all can be heroes in the

right situation.

COUNTERPOINT Of course heroes are not like everyone else. That is what makes them heroes.

A generation of evidence from behavioural genetics

reveals that •everything is genetic," meaning we have

yet to discover an important human behaviour that does

not have genetic origins. Although we are not aware of any such study with respect to heroism, it would be sur-

prising if courageous behaviour were not at least partly

genetic.

It's foolish to think courageous people are not excep-

tional because of who they are. Just as we know there

is an entrepreneurial personality and a leader personal- ity, there is a heroic personality. Research suggests, for

example, that people who score high on conscientious-

ness are more likely to engage in courageous behaviour.

Not all leaders are heroes, but many have exhib-

ited courageous behaviour. CEO Richard Branson may or may not be a hero, but when he launches his latest

attempt to set the world record for an around-the-world

balloon flight or sloop sailing, he exhibits the same cou-

rageous behaviour as when he is leading conglomer-

ate Virgin Group. Virgin Group now includes more than

400 companies, including Virgin Galactic, a space tour- ism company, and Virgin Fuels, whose goal is to revo-

lutionize the industry by providing sustainable fuels for

automobiles and aircraft. Same leader, same heroic

behaviour- in work and in life.

Are we really to believe that Richard Branson and

other courageous leaders are just like everyone else?

Chapter 11 Leadership 409

BREAKOUT GROUP EXERCISES

Forn, small groups to discuss the following topics, as assigned by your instructor:

1. Identify an example of someone you think of as a good leader (currently or in the past). What traits did he or she have? How did these traits differ from those in someone you identify as a bad leader?

2. Identify a situation when you were in a leadership position (in a group, in the workplace, within your family, etc.). To what extent were you able to use a contingency approach to leadership? What made that easier or more difficult for you?

3. When you have worked in student groups, how frequently have leaders emerged in the groups? What difficulties occur when leaders are leading peers? Are there ways to overcome these difficulties?

EXPERIENTIAL EXERCISE

What Is Leadership? Break the class into six groups: GROUP A: Government Leaders (prime minister, senator, premier, MLA, mayor); GROUP

B: Business Leaders (CEO, president, leader in business); GROUP C: School Leaders (class president , informal leader);

GROUP D: Sports Leaders (team captain, informal team leader, coach); GROUPS E and F: Effective Managers (man-

ager who demonstrates competence/effectiveness in position).

1. Each group identifies separately the defining characteristics of leadership and management for the assigned role, not simply by brainstorming, but by deciding upon descriptors that most of the group agrees are the defining characteristics of leadership and management.

2. Reconvene the class. Draw six columns for each group and list the characteristics for each group. What similari - ties do you see between the lists? From the results of this exercise, does it appear that what it takes to be a good leader is different depending on the classification? Does it seem that the characteristics for leaders differ greatly from those needed for good managers?

ETHICAL DILEMMA

Smoking Success "I've been high since I'm 13," Justin Hartfield observed,

admitting that his resume includes a stint as a high-school

marijuana distributor and a member of a group of web-

site hackers. 111 Now in his 30s, Hartfield is a successful

entrepreneur and investor. So what if he is dealing in the

same venues of his childhood passions- marijuana and

websites? He says, "Marijuana is not going to be profit-

able to make in the long term, it's going to be a dollar a

gram . And so someone . .. needs to step in and make

it profitable to grow. I'm the best guy to do it ." Hartfield

envisions himself as the top leader of a newly legalized

industry. Obviously, he has no issue with the ethics of marijuana

consumption or distribution. He created Weedmaps

.com, a large directory for medical -marijuana users to find

accessible doctors and dispensaries, and charges sub-

scribers $295+ per month; his other business through

Ghost Group invests in start-up marijuana operations.

"I'm doing everything I can in this industry legally that isn't

going to throw me in jail," he said.

4 1 O Part 4 Sharing the Organizational Vision

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Hartfield hopes recreational marijuana use is legalized

everywhere soon. "I care about the least amount of people

suffering under prohibition,• he said, "and secondarily the

more money I can make."

Questions

1. Hartfield is a leader in his industry, and he hopes to sell the most marijuana possible. Meanwhile, a study published by the National Academy of Sciences

indicated that New Zealand teenagers who were heavy marijuana smokers lost up to 8 IQ points. Do you think that as a leader, Hartfield has a responsi- bility for the health of his customers?

2. How do you think the ethical responsibilities of lead- ers in this industry compare to those of leaders in, say, the tobacco and alcohol industries?

3. Would you take a leadership role in an organization if you had an ethical issue with its product or service? Why or why not?

CASE INCID ENTS

Leadership Mettle Forged in Battle In 2008, facing a serious shortage of leadership-ready

employees at the store management level, Walmart

decided to recruit from the military.112 The company

sent recruiters to military job fairs and hired 150 junior

military officers, pairing them with store mentors to learn

on the job. The result: Walmart claims that it has been

able to bring in world-c lass leaders who were ready to

take over once they had learned the retail business.

Other organizations that have heavily recruited from

the military in recent years include Home Depot, Shell

Canada, and Lowe's.

It is not really surprising to see companies tum to

the military for leadership potential. A long tradition of

books and seminars advises leaders to think like military

leaders, ranging from Sun Tzu to Norman Schwarzkopf.

Military veterans do have a variety of valuable skills

learned through experience. General David Petraeus

notes, "Tell me anywhere in the business world where

a 22- or 23-year-old is responsible for 35 or 40 other

individuals on missions that involve life and death ....

They're under enormous scrutiny, on top of everything

else. These are pretty formative experiences. It's a bit

of a crucible-like experience that they go through." Mili-

tary leaders are also accustomed to having to make

do in less-than-optimal conditions, negotiate across

cultures, be highly accountable, and operate under

extreme stress.

However, veterans do have to relearn some lessons.

Some may not be used to leading someone like an eccen-

tric computer programmer who works strange hours and

dresses like a slob, but brings more to the company's

bottom line than a conventional employee. Indeed, in

some companies, such as Google, there is nothing like

the chain of command military leaders are used to. Still,

there is an ample supply of battle-tested military leaders

ready to report for corporate duty, and many companies

are eager to have them.

Questions

1. Do you think leaders in military contexts exhibit the same qualities as organizational leaders? Why or why not?

2. In what ways not mentioned in the case would mili- tary leadership lessons not apply in the private sec- tor? What might military leaders have to relearn to work in business?

3. Are specific types of work or situations more likely to benefit from the presence of "battle-tested" leaders? list a few examples.

Leadership by Algorithm Is there one right way to lead?11 3 Research suggests

not, the methods explored in this chapter text suggest

not, and common sense suggests a "one-size-fi1s-all"

approach could be disastrous because organizations

exist for diverse purposes and develop unique cultures.

Leadership development programs generally teach a

best-practices model, but experts suggest that individu-

als trained in leadership techniques that are contrary to

their own natures risk losing the authenticity crucial to

effective leadership. A promising path to leadership may

thus lie in algorithms.

If you have ever taken a strengths-based assessment

such as the Harrison Assessment or Gallup's Clifton

StrengthsFinder, you know that surveys aimed at discov-

ering your personality, skills, and preferences result in a

personal profile. These tools are helpful, but algorithms

can take your leadership development to the next level of

personalization and application. They can take the results

from each survey you complete, for instance, and use

them to create a leadership program that matches your

needs and abilities.

As the founder of management coaching organization

TMBC and author of Standout, Marcus Buckingham is an expert on creating leadership programs. He recommends

the following steps:

Step 1.

Step 2.

Step 3.

Find or develop assessment tools. These might include a personality com- ponent, such as a Big Five inventory test, and will include other tests compa- nies can resource or create according to What leadership characteristics they are seeking to monitor.

Identify the top leaders in the orga- nization and administer tests to them. This step is not to determine what all the leaders have in common, but to group the top leaders into cat - egories by their similar profiles.

Interview the leaders within each profile category to learn about the techniques they use that work. Often these will be unique, unscripted, and

Step 4.

Chapter 11 Leadership 411

revealingly correlated to the strengths in their assessment profiles. Compile the techniques within each profile category.

The results of top leader profile cat- egories and their techniques can be used to create an algorithm, or tai- lored method, for developing lead- ers. Administer the assessment tests to developing leaders and determine their profile categories. The techniques from successful leaders can now be shared with the developing leaders who are most like them because they share the same profile category.

These steps provide a means for successful leaders

to pass along to developing leaders techniques that are

likely to feel authentic to the developing leaders and that

encourage creativity. The techniques can be delivered in

an ongoing process as short, personalized, interactive,

and readily applicable tips and advice, yielding results

no two-week leadership development course could

achieve.

Quest.ions

1. If you have participated in leadership development programs, how effective did you find them in (a) teaching you techniques and (b) giving you practi- cal strategies you could use? What could they do

better?

2. What are some potential negatives of using Buckingham 's approach to leadership development?

3. Would you suggest applying Buckingham's steps to an organization in which you have worked? Why or

why not?

In order to be charismatic in your leadership style, you need to engage in

the following behaviours: 114 Practising to be Charismatic 1. Project a powerful, confident, and dynamic presence. This has both

verbal and nonverbal components. Use a captivating and engag- ing voice tone. Convey confidence. Talk directly to people, maintain direct eye contact, and hold your body posture in a way that says you are sure of yourself. Speak clearly, avoid stammering, and avoid sprinkling your sentences with noncontent phrases such as "ahhh"

and "you know."

Not everyone is born charismatic.

However, it's possible to develop

this skill.

4 12 Part 4 Sharing the Organizational Vision

-"' CCI 0

• • • •

Practising Skills

• •••••

2. Articulate an overarching goal. You need to share a vision for the future, develop an unconventional way of achieving the vision, and have the ability to communicate the vision to others.

The vision is a clear statement of Where you want to go and how

you are going to get there. You need to persuade others that the

achievement of this vision is in their self-interest.

You need to look for fresh and radically different approaches to

problems. The road to achieving your vision should be seen as novel,

but also appropriate to the context.

Charismatic individuals not only have a vision, but they are also able to get others to buy into it. The real power of Martin Luther King

Jr. was not that he had a dream, but that he could articulate it in

terms that made it accessible to millions.

3. Communicate high performance expectations and confidence in oth- ers' ability to meet these expectations. You need to demonstrate your confidence in people by stating ambitious goals for them individually and as a group. You then convey absolute belief that they will achieve their expectations.

4. Be sensitive to the needs of followers. Charismatic leaders get to know their followers individually. You need to understand their indi- vidual needs and develop intensely personal relationships with each. This is done through encouraging followers to express their points of view, being approachable, genuinely listening to and caring about followers' concerns, and asking questions so that followers can learn what is really important to them.

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

You are a manufacturing manager in a large electronics plant.115 The

company's management is always searching for ways to increase effi-

ciency. They recently installed new machines and set up a new simpli-

fied work system, but to the surprise of everyone-including you- the

expected increase in production was not realized. In fact, production has

begun to drop, quality has fallen off, and the number of employee resigna-

tions has risen.

You do not think that there is anything wrong with the machines. You

have had reports from other companies that are using them, and they

confirm your opinion. You have also had representatives from the firm that

built the machines go over them, and they report that the machines are

operating at peak efficiency.

You know that some aspect of the new work system must be respon-

sible for the change, but you are getting no help from your immediate

team members- four first-line supervisors who report to you and Who are

each in charge of a section- or your supply manager. The drop in produc-

tion has been variously attributed to poor training of the operators, lack

of an adequate system of financial incentives, and poor morale. All of the

individuals involved have deep feelings about this issue. Your team does

not agree with you or with one another.

This morning you received a phone call from your division manager. He had just received your production figures for the past six months and was

calling to express his concern. He indicated that the problem was yours to

solve in any way that you think best, but that he would like to know within

a week What steps you plan to take.

You share your division manager's concern with the falling produc-

tivity and know that your employees are also concerned. Using your

knowledge of leadership concepts, which leadership style would you

choose? Why?

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

1. Think of a group 0< team to which you currently belong or of which you have been a part. What type of leadership style did the leader of this group appear to exhibit? Give some specific examples of the types of leadership behaviours he or she used. Evaluate the leadership style. Was it appropriate for the group? Why or why not? What would you have done differently? Why?

2. Observe two sports teams (either college/university or professional - one that you consider successful and the other unsuccessfuQ. What leadership styles appear to be used in these team situations? Give some specific examples of the types of leadership behaviours you observe. How would you evaluate the leadership style? Was it appro- priate f0< the team? Why or why not? To what degree do you think leadership style influenced the team's outcomes?

Chapter 11 Leadership 413

Reinforcing Skills

•••••••

4 14

Decision Making, Creativity, and Ethics

TD raised its sales targets and

some of its employees felt pressured to meet goals. Can people act ethically

while trying to save their jobs?

O Contrast the rational model of decision making with bounded rationality and intuition. f) Describe common decision biases and errors. f) Contrast the strengths and weaknesses of group decision making. C, Compare the effectiveness of interacting groups, brainstorming, and the nominal group technique. 0 Define creativity, and describe the three-stage model of creativity. O Describe the four criteria used in making ethical decisions.

•

nearly 2017, Bev Beaton noticed a new $29.95 rorontonian/ AlamyStock l'hoto charge on her TO Bank statement. 1 When she called for an explanation, she was told that she was in a new account that required her to keep a minimum monthly balance of $5000 in the account. Beaton immediately disputed this change, saying

she had not made a request to change her account type. The bank employee she was speaking to told her, "You must have."

Beaton was not alone in finding questionable charges and changes from TO. In spring of 2017, the CBC reported investigated the practice of upselling by TO employees. It heard from hundreds of current

and former employees about how sales goals were driving some employees to engage in unethical behaviour. Employees said that sales goals were unreasonable and had tripled during the past three

years. The sales targets put the employees in an ethical bind. As one teller noted, "It's a choice between keeping my job and feeding my family . . . or doing what's right for the customer. "

Another teller, Oalisha Dyal, who worked at a Vancouver TO for four years, quit because of the pressure. "I was made to feel as if I was committing a huge wrong for looking

out for the best interests of my customer over the interests of the bank," she said. How do managers make decisions about sales targets? What governs employ-

ees' decisions about responding to these sales targets? What about the ethics of these decisions? In this chapter, we describe how decisions in organizations are

made, as well as how creativity is linked to decision making. We also look at the ethical and socially responsible aspects of decision making. Decision making affects people at all

levels of the organization, and it's engaged in by both individuals and groups. Therefore, we also consider the special characteristics of group decision making.

• Do people really consider every alternative when making a decision?

\ I I ' , :o: ~ ' , '

'l'IIE BIG IDEA • Is it okay to use intuition when making decisions?

• Why is it that we sometimes make bad decisions?

• Why are some people more creative than others?

• How can people make more ethical decisions?

Decision 1naking can be improYed

Lhrough systernalic Lhinking and an

a\\'areness of common biases.

4 15

4 16 Part 4 Sharing the Organizational Vision

O Contrast the rational model of decision mak· ing with bounded ratio· nality and intuition.

decision The choice made from two or ITlOfe alternatives.

rational Refers to choices that are coosistent and value-maximizing within specified ooostraints.

rational decision-making model A six-step decision-making model Iha! describes how individuals should behave in order to maximize some outcome.

How Should Decisions Be Made? A decision is the choice made from two or more alternatives. Decision making hap- pens at all levels of an organization. Business schools train studenL~ to follo\v rational decision-making models. While models have merit, they don't always describe how people make decisions. There are decision-making errors people commit in addition to the perceptual errors we discussed in Chapter 2.

Knowing how to make decisions is an important part of everyday life. Below we consider various decis ion-making models that apply to both individual and group choices. (Later in the chapter, we discuss special aspects of group decision making.) We start with the rational decision-making model, which describes decision making in the ideal world, a situation that rarely exists. We then look at alternatives to the rational model, and how decisions actually get made.

The Rational Decision-Making Process We often think that the best decision maker is the rational decision maker, who makes consistent, value-maximizing choices within specified constraints.2 These choices are made following a six-step r ational d ecision-mak ing model.3 Moreover, specific assumptions underlie th is model.

The Six-Step Rational Model The six steps in the rational decision-making model are presented in Exhibit 12-1.

First, the decision maker must define the problem. If you calculate your monthly expenses and find you are spending $50 more than your monthly earnings, you have defined a problem. Many poor decisions can be traced to the decision maker overlook- ing a problem or defining the wrong problem.

The decision maker then needs to identify the criteria that are relevant to making the decision. This step brings the decision maker's interests, values, and similar personal preferences into the process, because not all individuals wi ll consider the same factors relevant for any particular decision.

EXHIBIT 12-1 Steps in the Rational Decision-Making Model

6. Select the

best alternative

5. Evaluate the alternatives

1. Define the

problem

Making a Decision

4. Develop

alternatives

2. Identify the

criteria

3. Allocate weig hts

to the crite ria

Chapter 12 Decision Making, Creativity, and Ethics 4 17

To understand the types of criteria that might be used to make a decision, consider how Toronto-based Canadian Imperial Bank of Commerce (CIBC) handles the many sponsorship requests il receives each year. When il makes a decision about whether to support a request, the bank takes into account a number of criteria. Specifically, lo be el igible for fund ing, a request must

• Be aligned to the bank's commitment to Kids, Cures, or Community

• Be a Canadian registered charity or non-profi t, using funds in Canada

• Have achievements and goals in line with CIBCs overall goals

• Address a community need and provide direct impact to the community served

• Include planned and measurable outcomes that can be evaluated

• Have audited financial statements, principled financial practices, and sustain- able funding4

If the sponsorship request does not meet these cri teria, il is not funded. Because the criteria identified are rarely all equal in importance, the th ird step

requires the decision maker lo allocate weights Lo the criteria. The fourth step requires the decision maker to develop alternatives that could succeed

in resolving the problem. The decision maker then critically evaluates the a/1en1acives, using the previously

established criteria and weights. Finally, the decision maker selects the best alternative by evaluating each alternative

against the weighted criteria and selecting the alterna tive with the highest total score.

Assumptions of the Model The rational decision-making model assumes that the decision maker has complete information, is able to identify all the relevant options in an unbiased manner, and chooses the option wi th the highest utility.5 Most decisions don't follow the rational model; people are usually content to find an acceptable or reasonable solution to a problem rather than an optimal one. Choices tend lo be limited to the neighbourhood of the problem's symptom and the current alternative.

How Do Individuals Actually Make Decisions? It can be difficult to make a rational decision if scmeone is pressuring you to make a different

decision.6 One TD teller on sick leave noted that her manager stood behind her three limes a

day to oversee her work. "They just really stress you out and say, 'You're not doing good. I need

you to do double the amount you've been doing.' I couldn't sleep. I'd be thinking . . . 'What can

I do tomorrow to try and get sales?"'

Another teller reported to CBC that she was put on a Performance Improvement Plan

because she was falling below lhe sales targets. The plan involved coaching, and could result

in discipline if her sales didn't increase. The pressure was so great that "I have invested clients'

savings into funds which were not suitable, because of the SR [sales revenue] pressure," she

said. "That's very difficult to admit. I didn't do this lightly."

The bank has a lot of information about its customers. When a customer goes to his or her

branch and interacts with the teller, even for something as simple as to make a deposit, the

computer screen in front of lhe teller makes suggestions about what products could be sold to

the customer. This adds to the pressure tellers feel. Many of the longer-term employees did not

envision a job as a sales clerk when they first started as tellers. Their fear of losing their jobs

affects them on a daily basis.

What sorts of perceptual biases might affect the decisions people make'

4 18 Part 4 Sharing the Organizational Vision

I\ 0 l' ~ CAREER OBJECTIVES

L~ How Can I Make My Job Better? Honest ly, I hat e my job. But t here are reasons I should stay: This is my f irst job o ut of college, it pays pret ty w ell, and it w i ll establ ish my career. Is t here any hope, or am I doomed unt il I q uit?

- Taylor

Dear Taylor: You're not doomed! You can work on your attitude to either improve your experience or find a positive per- spective. In other words, if you can turn "I hate my job" into "this is what I'm doing to make my situation bet- ter, " your job satisfaction is likely to improve. Try this: • Write down everything you hate

about your job, but wait until you have a few days off so you can get a more objective viewpoint. Be spe- cific. Keep asking yourself why, as in, ''Why do I dislike my office mate?" Also, consider your history: Was the job always a problem, or have cir- cumstances changed?

• Now write down everything you like about the job. Again, be specific. Think about the environment, the people, and the work separately.

Find something positive, even if it's just the coffee in the break room.

• Compare your lists tor clues about your attitude and job satisfaction. Look for mentions of the work or the people. Job satisfaction is generally more strongly related to how interesting your work is than it is to other factors. People, espe- cially your supervisor, are impor- tant to your attitude toward work

as well. • Read your lists aloud to a few

trusted friends (you don't want to rant about your boss with your co-worker). Ask them to help pro- cess your grievances. Are there deal-breakers like harassment?

• Decide whether you can talk with your manager about this. According to Roy L. Cohen, author of The Wall Street Protessional's Survival Guide, "consider whether how you' re being treated is unique to you or shared by your colleagues." If everyone has the same problem, especially if the problem is the boss, you probably should not approach your manager. But changes can be made in most situations.

Based on the sources of your grievances and your ability to make changes in the workplace, you may choose to address the issues, or develop skills for your next job. Mean- while, don't sabotage yourself with sloppy performance and complaints. Instead, look for positive reinforcement, join a professional organization, or vol- unteer. Happy employees are healthier. You deserve to be one of them.

Sources: "Employee Engagement," Workf0it:e Management (Februa,y 2013): 19 ; A. Hurst, "Being 'Good' Isn't the Only Way to Go," New York 77mes, April 20, 2014, 4; R. E. Silverman, "Worl< as Labor or Love?" Wal Street Journal, October 18, 2012, D3; H. J. Smith, T. F. Pettigrew, G. M. Pippin, ands. Bialosiewicz, •Relative Deprivation: A Theoretical and Meta-Analy1ic Review,• Persooality and Social Psychology Review 16 (2012): 203-32; and A. Tugend, "Survival Skllls for a Job You Detest," Wall Street Journal, April 7, 2012, BS.

The opinions provided here are of the manag· ers and authors only and do not necessarily reflect those of their organizations. The authors or managers are not responsible for any errors or omissions, or for the results obtained from the use of this information. In no event will the authors or managers, or their related partner- ships or corporations thereof, be liable to you or anyone else for any decision made or action taken in reliance or, the opln/orJs provided here.

Most decisions in the real world don't follow the rational model. As one expert in deci- sion making has concluded, "Most significant decisions are made by judgment, rather than by a defined prescriptive model."7 Whal is more, people are remarkably unaware of making suboptimal decisions.8

In the follow ing sections, we indicate areas where the reality of decision making conflicts with the rational model. 9 None of these ways of making decisions should be considered irrat.ional; they simply depart from the rational model when information is unavai lab le or too costly to collect.

Bounded Rationality in Considering Alternatives Our limited information-processing capability makes it impossible lo assimilate all the information necessary to optimize decision making, even if the information is readily obtainable. 10 Many problems don't have an optimal solution because they are too complicated to fit the rational decision-making model. so people satisfice;

Chapter 12 Decision Making, Creativity, and Ethics 4 19

they seek solutions that are satisfactory and sufficient. We tend lo reduce complex problems to a level we can read ily understand.

When you considered which univers ity or college to auend, did you look at every workable alternative? Did you carefully identify all the criteria that were important in your decision? Did you evaluate each al ternative aga inst the criteria in order to find the optimum school? The answer to these questions is probably no. But don't feel bad, because few people selected lheir educational institution this way.

Do people really consider every alterna-

tive ,vhen 1nak- ing a decision'?

Because the human mind cannot formula te and solve complex problems with full rationality, we operate within the confines of bounded rationality. We construct sim- plified models that extract the essential features from problems without capturing all their complexity. We can then behave rationally within the limits of lhe simple model.

How does bounded rationality work for the typical individual? Once we have iden- tified a problem, \Ve begin to search for criteria and alternatives. But the criteria are unl ikely to be exhaustive. We identify alternatives that are highly visible and lhal usually represent familiar criteria and tried-and-true solutions. Next, we begin reviewing the alternatives, focusi ng on choices lhat differ lit tle from the current stale unti l we identify one lhat is "good enough•- that meets an acceptable level of performance. That ends our search. So the solution represents a satisfidng choice- the first acceptable one we encounter- ra ther lhan an optimal one.

Satisficing is not always bad- a simple process may frequently be more sensible than the traditional rational decision-making model. 11 To use the rational model, you need to gather a great deal of information about all lhe options, compute applicable weights, and lhen calculate va lues across a huge number of criteria. All these processes can cost time, energy, and money. If lhere are many unknown weights and preferences, the fully rational model may not be any more accurate than a best guess. Sometimes a

Nin

Nintendo president Satoru Iwata (right} and DeNA president lsao Moriyasu operated wijhin the confines

of bounded rationality in deciding to form an alliance to develop and operate new game applications for mobile devices. The alliance brings Nintendo's games and characters to the mobile user market and strengthens DeNA's mobile gaming business.

bounded rationality Limijations oo a person's ability to interpret, process, and act oo information.

satisficing To provide a solution that is both satisfactory and sufficient.

4 20 Part 4 Sharing the Organizational Vision

intuitive decision making An un0011scious process created out of a person's many experiences.

fast-and-frugal process of solving problems might be your best option. Return ing lo your college or university choice, would it be best to fly around the country lo visit dozens of potential campuses and pay application fees for all? It might be smarter lo satisfice by finding a few colleges or universities that match most of your preferences and then focus your atten tion on differentiating among those.

Intuition Perhaps the least rational way of making decisions is intuitive decision making, an unconscious process created from distilled experience.12 Intuitive decision making occurs outside conscious thought; relies on hol istic associations, or links between dispa- rate pieces of information; is fast; and is affectively charged, meaning tha t it engages the emotions. 13

While intuition is not rational, it's not necessarily wrong. Nor does il always contradict rational analys is; rather, the two can complement each other. Intuition can be a powerful force in decision making. Intuition is com- plex and based on years of experience and learning. OB in tile Street shows how intuition applies to grand master chess players.

OB IN THE STREET Intu ition Comes to the Chessboard

Ls it okay to use intuition

""hen makin~ decisions'?

Can intuition really help you win a chess game? Apparently so. 14 Novice chess play- ers and grand masters were shown an actual, but unfamiliar, chess game with about 25 pieces on the board. After 5 or 10 seconds, the pieces were removed, and each subject was asked to reconstruct the pieces by position. On average, the grand master could pul 23 or 24 pieces in their correct squares, while the novice was able to replace only 6. Then the exercise was changed. This time, the pieces were placed randomly on the board. Again, the novice got only about 6 correct, but so d id the grand master! The second exercise demonstrated that the grand master did not have a better memory than the novice. Whal the grand master did have was the ab ility, based on the experience of having played thousands of chess games, to recognize patterns and dusters of pieces that occur on chessboards in the course of games. Studies also show that chess professionals can play 50 or more games simultaneously, making decisions in seconds, and exhibit only a moderately lower level of ski ll than when playing one game under tournament conditions, where decisions take half an hour or longer. The expert's experience allows him or her to recognize the pattern in a s ituation and draw on previously learned information associated with that pauern to arrive al a decision quickly. The resu lt is that the intui tive decision maker can decide rapidly based on what appears to be very

: limiled i11 formation . . .. .. .... .. ..... .. .... .. ..... . ..... .. ..... . ..... .. .... .. .. .

As the example of the chess players shows, those who use intuition effectively often rely on their experiences to help guide and assess their intuitions. That may be why senior managers are more likely to turn to intuition when they are lacking full informa- tion, as Focus 011 Research shows.

Does intuition contribute to effective decision making? Researchers are divided, but most experts are skeptical, in part because intuition is hard to measure and analyze. A recent study that examined people's abil ity to ·use their gu t• to make decisions found

•

Chapter 12 Decision Making, Creativity, and Ethics 421

FD c us ~NESEARCH Putting Intuition to Work in the Workplace

How do senior managers use intuition in their decision making? A study of 57 Australian

senior executives who make marketing sponsorship decisions found that almost all of them used intuition to help guide their decisions at least some of the time.15 Organizations that

placed a high value on trust when selecting sponsorship opportunities were more likely to

have managers who based their decisions on intuition. Not surprisingly, managers at orga- nizations with highly formalized decision-making processes reported less use of intuition,

although even they reported using it moderately frequently. Managers were more likely to

rely on their intuition when the factors under consideration were vague or complex, or the benefits of sponsorship were largely nonmonetary and intangible. Uncertainty in the envi-

ronment, it seems, increased their reliance on "gut feel." While intuition can help us make

better decisions if we have the appropriate tacit knowledge, it's worthwhile to double-check to ensure that perceptual errors are not biasing our thought processes. • ... . . . . . .... . .•

that not everyone's gut is reliable. For some, the physiological feeling that one associ-

ates with intuition works, but for others it does not. 16 Probably the best advice from

one expert is this: "Intuition can be very useful as a way of setting up a hypothesis but is unacceptable as 'proof:" 17 Use hunches based on experience to speculate, yes, but

always make sure to test those hunches with objective data and rational analysis.

As you can see, the more we use objective processes for decision making, the more likely we are to correct some of the problems with our perceptual process. Just as there

are biases and errors in the perception process, it stands to reason there are identifiable b iases and errors in our decision making, which we will outline next.

Judgment Shortcuts Decision makers engage in bounded rationality, but they also allow systemat ic biases and errors to creep into their

judgments. 18 To minim ize effort and avoid trade-offs,

people tend to rely too heav i ly on experience, impulses, gut feel ings, and convenient rules of thumb. Shortcuts can

distort rationality, as OB in the Street shows.

OB IN THE STREET Penalty Kick Decisions

v\lhy is it that we someti1nes

1nake bad decisions·?

Should you stand still or leap into action? This is the classic question facing a goal ie in

a faceoff against a midfielder for a penalty kick. 19 Ofer H. Azar, a lecturer in the School of Management at Ben-Gurion University in Israel, finds that goal ies often make the wrong decision.

Why? The goalie tries to anticipate where the ball will go after the kick. There is only a spl it second to do anything after the kick, so anticipati ng and acting seem like

a good decision. Azar became interested in studying goal ie behaviour after real izing that the •incen-

tives are huge• for the goalie to get it right. "Goalkeepers face penalty kicks regularly, so they are not only h igh-motivated decision makers, but also very experienced ones,•

Describe common deci· sion biases and errors.

422 Part 4 Sharing the Organizational Vision

overconfidence bias Err0< in judgment that arises from being far too optimistic about one's own performance.

anchoring bias A tendency to fix- ate on inijial information, fr0<n which one then fails to adequately adjust for subsequent inf0<mation.

he explains. That said, 80 percent of penalty kicks score, so goalies are in a difficult s ituation at that instant the kick goes off.

Azar's study found that goalies rarely stayed in the centre of the net as the ball was fired (just 6.3 percent of the time). But staying in the centre is actually the best strategy. Goalies halted penalty kicks when staying in the centre 33.3 percent of the time. They were successful only 14.2 percent of the time when they moved left and only 12.6 per- cent of the time when they moved right.

Azar argues that the resu lts show that there is a "bias for action,• explaining that goalies think they will feel worse if they do nothing and miss, than if they do something and miss. This bias then clouds their judgment, encouraging them to move to one side or the other, rather than just s taying in the centre, where the odds are actually more in lhe.ir favour . .................................................................. .

In wha t follows, we discuss some of the most common judgment shortcuts to alert you to mistakes that are often made when making decisions.

Overconfidence Bias We tend to be overconfident about our abili ties and the ab ilities of others; also, we are usually not aware of this bias.20 It's been said that •no problem in judgment and deci- sion making is more prevalent and more potentially catastrophic than overconfidence. "21

When we are given factual questions and asked to judge the probability that our answers are correct, we tend to be overly optimistic. This is known as overconfidence bias . In a study of confidence intervals ( educated guesses abou t some characteris tic of a population), when people said they were 90 percent confident that their answers were correct, their answers were correct only about 50 percent of the time- and experts were no more accurate in their estimation of confidence intervals than were novices.22

Individuals whose intellectual and interpersonal abilities are wealiesi are most likely to overestimate their performance and ability.23 Also, a negative relationship exists bet,veen entrepreneurs' optimism and performance of their new ventures: The more optimistic, the less successful.24 The tendency to be too confident about their ideas might keep some from planning how to avoid problems that arise.

Investor overconfidence operates in a variety of ways.25 Finance professor Terrance Odean says, •reople think they know more than they do, and it costs them.• Investors, especially novices, overestimate not just their skill in processing information, but also the quality of the information. Most investors will do only as well as or just slightly better than the market.

Anchoring Bias The anchoring bias is a tendency to fixate on initial information and fail to adequately adjust for subsequent information.26 ll occurs because the mind gives a disproportion- ate amount of emphasis to the first information it receives.27 Anchors are widely used by people in professions where persuasion skills are important- such as advertising, management, pol itics, real estate, and Jaw.

Any time a negotiation takes place, so does anchoring. As soon as someone states a number, your abi lity to ignore that number has been compromised. For instance, when a prospective employer asks how much you were making in your prior job, your answer typically anchors the employer's offer. You may want to keep this in mind when you negotiate your salary, but remember to set the anchor only as high as you realis tically can. The more precise your anchor, the smaller the adjustment. Some research suggests that people th ink of making an adjustment after an anchor is set as rounding off a number. If you suggest a salary of $55 000, your boss will consider $50 000 to $60 000 a reasonable range for negotiation, but if you mention $55 650, your boss is more likely to consider $55 000 to $56 000 the range of likely va lues for negotiation.28

Chapter 12 Decision Making, Creativity, and Ethics 423

Confirmation Bias The rational decision-making process assumes that we objectively gather informa- tion. Bul we don' t. We selectively gather it. The confirmation bias represents a case of selective perception. We seek oul information that reaffirms our past choices, and we discoun t information that contradicts them.29 We also tend to accept at face value information that confirms our preconceived views, while we are skeptical of informa-

tion that challenges these views. We even tend to seek out sources most l ikely to tell us what we want to hear, and give too much weight to supporting information and too little to contrad ictory information.3° Fortuna tely, those who feel there is a strong need to be accurate in making a decision are less prone to confirmation bias.

Availabil ity Bias The availability bias is the tendency for people lo base their judgments on readi ly available information. A combination of readi ly available information and our previ- ous d irect experience with s imi lar information has a particularly strong impact on our decision making. Events that evoke emotions, that are particularly vivid, or that have

occurred more recently tend lo be more available in our memory. As a resu lt, we lend to overestimate unlikely even ls, such as being in an airplane crash, suffering complications from medical treatment, or getting fired.31 The availab ility b ias can a lso explain why managers, when doing annual performance appraisals, tend lo give more weight to the recent behavio ur of an employee than to tha t of six or nine months ago.

Escalation of Commitment Some decision makers escalate commitment to a fai ling course of action.32 Escalation of commitment refers to staying with a decision even when there is clear evidence that it's wrong. For example, a friend has been dating someone for several years. Although she admits that th ings are nol going well, she is determined to marry h im anyway. Her justification: "I have a lot invested in the relationsh ip !"

When is escala tion of commitment most likely lo occur? Evidence indicates that it tends lo occur when individuals view themselves as responsib le for the outcome. The fear of personal fail ure even b iases the way we search for and evaluate information so that we choose only information that supports our ded ication. 33

It does not appear to matter whether we chose the fa iling course of action or it was assigned to us- we feel responsible and escalate commitment in either case. Also, the

sharing of decision-making authority- as when others review the choice we made- can lead to higher escalation of commitment.34 Finally, awareness of sunk costs associated with the decision reduces escalation of commitment when individuals feel responsible (i t gives them an "escape clause")_3s

We usually th ink of escalation of commitment as ungrounded. However, pers is - tence in the face of fail ure is responsible for a great many of history's greatest feats, the bui lding of the Pyramids, the Great Wall of China, the Panama Canal. and the Empire Stale Building among them. Researchers suggest a balanced approach includes frequent evaluation of the spent costs and whether the next step is worth the an ticipated costs.36

What we want lo combat is thus the tendency lo automatically escalate commitment.

Randomness Error Most of us like lo th ink we have some control over our world and our destiny. Our ten-

dency lo believe we can predict the o utcome of random events is the randomness error. Decision making suffers when we try to create meaning in random events, particu-

larly when we turn imaginary patterns into superstitions.37 These can be completely contrived, such as "I never make important decis ions on Friday the 13th." They can also evolve from a certain pattern of behaviour that has been reinforced previously. For example, Mikael Ki ngsbury, a world champion in moguls who won a silver medal at the Sochi Olympics while represen ting Canada, wears the same T-shirt under his ski

confirmation bias The tendency to seek out information !hat reaffirms past choices and to discount informa- tion that 0011tradicts past judgments.

availabil ity bias The tendency for people to base their judgments on informalioo that is readily available to them rather than complete data.

escalation of commitment An increased commitment to a previous decision despite negative informalioo.

randomness error The tendency of individlJals to believe !hat they can predict !he outcome of random events.

424 Part 4 Sharing the Organizational Vision

~ OB ~cr10N clothing al every competition. The T-shirt says "ll's good to be the King." He wore il the first time he won a medal in a World Cup event, and then started wearing it lo every major competi- tion. "Even if I do badly, it's still got some magic,• he said.39

Decisions based on random occurrences can handicap us when they affect our judgment or bias our major decisions.

Reducing Biases and Errors in Decision Making

-+ Focus on goals. Clear goals make decision making easier and help you eliminate options that are inconsistent with your interests.

Risk Aversion Mathematically, we should find a 50- 50 flip of a coin for $100 to be worth as much as a sure promise of $50. After all, the expected value of the gamble over a number of trials is $50. However, nearly everyone but commined gamblers would rather have the sure thing than a risky prospect.4° For many people, a 50- 50 flip of a coin even for $200 might nol be worth as much as a sure promise of $50, even though the gamble is mathemati- cally worth twice as much! This tendency lo prefer a sure thing over a risky outcome is risk aversion.

-+ Look for information that disconflrms your beliefs. When we deliberately consider various ways we could be wrong, we challenge our tendencies lo th ink we are smarter than we actually are.

-+ Don' t create meaning out of random events. Ask yourself if patterns can be meaningfully Risk aversion has important implications. First, to offset the

risks inherent in a commission-based wage, companies may pay commissioned employees considerably more than they do those on straight salaries. Second, risk-averse employees will s tick with the established way of doing their jobs rather than take a chance on innovative methods. Continuing with a strat- egy that has worked in the past minimizes risk, bul it wi ll lead lo s tagnation. Third, ambitious people with power that can be

explained or whether they are merely coinci- dence. Don't auempl to create meaning out of coincidence.

-+ Increase your options. The more alternatives you can generate, and the more diverse those alternatives, the greater your chance of finding an outstanding one.38

taken away ( most managers) appear lo be especially risk averse, perhaps because they don't want lo gamble everything they have

risk aversion The tendency to pre· fer a sure gain of a moderate amount over a riskier outcome, Mn ij the riskier outcome might have a higher expected payoff.

hindsight bias The tendency to believe falsely, after an outcome of an event is actually known, that one could have accurately predicted that outcome.

worked so hard lo achieve.41 CEOs at risk of dismissal are also exceptionally risk averse, even when a riskier investment strategy is in their firms' best inlerests.42

Risk preference is sometimes reversed: People take chances when trying to prevent a negative outcome.43 They may thus risk losing a lot of money al trial rather than settle for less out of court Stressful si tuations can make risk preferences stronger. People under stress will more likely engage in risk-seeking behaviour to avoid negative outcomes, and risk-averse behaviour seeking positive outcomes.44

Hindsight Bias The hindsight bias is the tendency lo believe falsely, after the outcome of an event is actually known, that we could have accurately predicted that outcome.45 When we have accurate feedback on the outcome, we seem lo be pretty good al concluding that il was obvious.

For instance, the original home video ren tal industry, ren ting movies al brick-and- mortar stores, collapsed as online distribution outlets ate away al the market.46 Some have suggested that if rental companies like Blockbuster had leveraged their brand lo offer onl ine streaming and kiosks, they could have avoided failure. While tha t seems obvious now in hindsight, tempting us to th ink we would have predicted it, many experts failed to predict industry trends in advance. Though cri ticisms of decision mak- ers may have merit, as Malcolm Gladwell, author of Blinh and The Tipping Point, writes, "What is clear in hindsight is rarely clear before the fact •47

We are all susceptible lo biases like hindsight bias, but are we all susceptible lo the same degree? ll is not likely. Our individual differences play a significan t role in our decision-making processes, while our organizations constrain the range of our available decision choices.

OB in Action- Reducing Biases and Errors in Decision Making provides you with some ideas for improving your decision making.

Chapter 12 Decision Making, Creativity, and Ethics 425

Group Decision Making The belief- characterized by juries- that two heads are better than one has Jong been accepted as a basic component of North American and many other countries' legal systems. Many decisions in organizations are made by groups, teams, or commiuees. In this sec- tion, we review group decision making and compare it with individual decision making.

Groups vs. the Individual Decision-making groups may be widely used in organizations, but are group decisions preferable lo those made by an individua l alone? The answer to this depends on a number of factors we consider below. See Exhibit 12-2 for a summary of our major points. Point/Co11nrerpoint on page 443 also considers whether people are more creative when they work alone or with others.

Strengths of Group Decision Making Groups generate more complete infonnation and knowledge. By combining the resources of several individuals, groups bring more input into the decision-making process. They offer increased diversity of views, which opens up the opportunity lo consider more approaches and alternatives. Finally, groups lead to increased acceptance of a solution. Group members who participate in making a decision are likely lo support il enthusi- astically and encourage others to accep t il later.

Weaknesses of Group Decision Making Group decisions are tinie-consuming because groups typically take more time to reach a solution. There are confonnity press11res. The desire by group members lo be accepted and considered an asset to the group can result in squashing any overt disagreement. Group discussion can be dominaced by one or a few members. If they are low- and medium-abi lity members, the group's overall effectiveness will suffer. Finally; group decisions suffer from ambiguous responsibility. In an individual decision, it's clear who is accountable for the final outcome. In a group decision, the responsibil ity of any single member is watered down.

Effectiveness and Efficiency Whether groups are more effective than individuals depends on how you define effec- tiveness. Group decisions are generally more acc11rate than the decisions of the average individual in a group, but they are less accurate than the judgmenL~ of the most accurate group member.48 If decision effectiveness is defined in terms of speed, individuals are superior. If creativity is important, groups lend to be more effective than individuals. If effectiveness means the degree of acceptance the final solution achieves, the nod again goes to the group. 49

But we cannot consider effectiveness without a lso assessing efficiency. With few exceptions, group decision making consumes more work hours than having an

EXHIBIT 12-2 Group vs. Individual Decision Making

Criteria of Effectiveness

More complete infonnation

Diversity of views

Decision quality

Accuracy

Creativity

Degree of acceptance

Speed

Efficiency

Groups

Individuals

8 Contrast the strengths and weaknesses of group decision making.

426 Part 4 Sharing the Organizational Vision

groupthink A phenomenon in which group pressures 10< cooformity prevent lhe group from critically appraising unusual, minority, or unpopular views.

individual tackle the same problem. The exceptions tend to be the instances in which, to achieve comparable quantities of diverse input, the single decision maker must spend a great deal of time reviewing files and talking to o ther people. In deciding whether to use groups, then, consideration should be given to assessing whether increases in effectiveness are more than enough to off~el the reductions in efficiency. The Experiential Exercise on pages 444-446 gives you an opportunity to assess the effectiveness and effi- ciency of group decision making vs. individual decision making.

In summary, groups are an excellent vehicle for performing many s teps in the deci- sion-making process and offer both breadth and depth of input for information gath- ering. If group members have diverse backgrounds, the alternatives generated should be more extensive and the analysis more critical. When the fina l solution is agreed on, there are more people in a group decision to support and implement it. These pluses, however, may be more than offset by the time consumed by group decisions, the inter- nal conflicts they create, and the pressures they generate toward conformity. We must be careful to define the types of conflicts, however. Research in South Korea indicates that group conflicts about tasks may increase group performance, while conflicts in relation- ships may decrease performance.50 In some cases, therefore, we can expect individuals to make better decisions than groups.

Groupthink and Groupshift Two by-products of group decision making, groupthink and groupshifl, can affect the group's ab ility to appra ise alternatives objectively and achieve high-quality solutions.

Groupthink Have you ever felt like speaking up in a meeting, classroom, or informal group, but decided against it? One reason may have been shyness. On the other hand, you may have been a victim of groupthink. Groupthink relates to norms. It describes situations in which group pressures for conformity deter the group from critically appraising unusual, minority, or unpopular views. Groupthink attacks many groups and can dra- matically hinder their performance.

We have all seen the symptoms of the groupthink phenomenon:51

• Illusion of invulnerability. Group members become overconfident among them- selves, allowing them to take extraordinary risks.

• Assumption. of morality. Group members believe highly in the moral rightness of the group's objectives and do not feel the need to debate the ethics of their actions.

• Rationalized resistance. Group members rationalize any resistance to the assumptions they have made. No matter how strongly the evidence may contradict their basic assumptions, members behave so as to reinforce those assumptions continually.

• Peer pressure. Group members apply direct pressure on those who momen- tarily express doubts about any of the group's shared views or who question the val idity of arguments supporting the alternative favoured by the majority.

• Minimized doubts. Those group members who have doubts or hold differing points of view seek to avoid deviating from \vhat appears to be group consen- sus by keeping silent about misgivings and even minimizing to themselves the importance of their doubts.

• Illusion of unanimity. If someone does not speak, it's assumed that he or she is in full agreement. In other words, abstention becomes viewed as a yes vote.

Groupthink can also take place among strategic decision-makers, as OB in the Street shows.

OB IN THE STREET Groupthink at Target Canada

Chapter 12 Decision Making, Creativity, and Ethics 427

Why did a large, experienced retai ler make so many basic errors when launching its Canadian outlets? In 2013, US-based Target brought its mass-merchandise s tores to Canada, opening over 100 stores in under a year.s2 Things did not go well over 2013 and 2014. The stores drastically underperformed, with customers complaining about poor selection, high prices, and empty store shelves. The retailer admits lo poor planning, fail ing to research the prices charged by its Canadian competitors, and not making sure its supply chains would work properly.

Even with these difficulties, Target Chief Financial Officer John Mull igan said the reta iler was in Canada for the long hau l. Mulligan admitted that "we bit off way too much, too early. In retrospect we should've probably opened five to 10 stores [in 2013 J-refined the operations, refined the supply chain, the technology, got our store teams trained. But again, that's all hindsight, we are where we are right now and we're focused on moving forward to fix th is for our guests." Despi te th is s tatement, in 2015 the US parent company's CEO, Brian Cornell, announced that Target was pulling out of Canada and closing all 133 stores across the country.

Why did Target's Canadian management team choose to continue to open even more new stores in 2014 after its first stores opened with a strategy that was highly problematic? Groupthink is part of the answer. As one former employee stated: •[Key team members from the Uni ted States I were not guides or resources, as much as they were obstacles to progress. If it didn' t come from/work in the U.S. then it was not a discussion point." The same employee added: "To ... assume that the same 'playbook' used in the U.S. would work in Canada was incredible. The inability of the (key team members from the United States] to think and work beyond this led to us attempting to Xerox the U.S. s tore culture (for Team Members and Guests) instead of develop one

• that is tailored to Canadian tastes and attitudes." .. .............. ................ .

Groupthink appears to be closely aligned with the conclusions psychologist Solomon Asch drew in his experiments with a lone dissenter, which we described in Chapter 6. Individuals who hold a position that is different from that of the dominant majority are under pressure to suppress, withhold, or modify their true feelings and beliefs. As members of a group, we find it more pleasant to be in agreement-to be a positive part of the group-than to be a disruptive force, even if disruption is necessary to improve the effectiveness of the group's decisions. Groups that are more focused on performance than on learning are especially likely to fall victim to groupthink and to suppress the opinions of those who do not agree with the majority.s3

Do all groups suffer from groupthink? No. It seems to occur most often where there is a clear group identity; where members hold a positive image of their group, which they want to protect; and where the group perceives a collective threat to its positive image.s4 One study showed that those influenced by groupthink were more confident about their course of action early on.ss Groups that believe too strongly in the correctness of their course of action are more likely to suppress d issent and encourage conformity than are groups that are more skeptical about their course of action.

What can managers do to minimize groupthink?s6

• Monitor group size. People grow more intimida ted and hesitant as group size increases, and, although there is no magic number that will eliminate group· think, individuals are likely to feel Jess personal responsibility when groups get larger than about 10.

4 28 Part 4 Sharing the Organizational Vision

groupshift A phenomenon in which the initial pooitions of individual group members become exagger- ated because of the interactions of the group.

• Enccnirage group leaders to play an impartial role. Leaders should actively seek input from all members and avoid expressing their own opinions, especially in the early stages of deliberation.

• Appoint one group member w play the role of devil's advocate. This mem- ber's role is to overtly challenge the majority position and offer divergent perspectives.

• Stimulate active discussion of diverse alternatives w encourage dissenting views and more objective evaluat.ions. Group members might delay discussion of possible gains so they can first talk about the dangers or risks inherent in a decision. Requiring members to first focus on the negatives of an alternative makes the group less likely to s tifle dissenting views and more likely to gain an objective evaluation.

Groupshift or Group Polarization There are differences between group decisions and the individual decisions of group members.57 In groups, discussion leads members toward a more extreme view of the position they already held. Conservative types become more cautious, and aggressive types take on more risk. Participants have engaged in groupshift, a phenomenon in which the initial posi tions of individual group members become exaggerated because of the interactions of the group.

Group polarization is a special type of groupthink. The group's decision reflects the dominant decision-making norm- toward greater caution or more risk- that develops during discussion.

The shift toward polarization has several explanations.58 It has been argued, for instance, that the discussion makes members more comfortable with one another, and, thus, more willing to express extreme versions of their original positions. Another argument is that the group diffuses responsib ility. Group decisions free any single member from accountabil ity for the group's final choice, so greater risks can be taken.

When Volkswagen was caught in a scandal for falsifying emission data, both groupthink and autocratic leadership may have been at play. One author describing the situation said, "Employees who had reser- vations about the illegal software-and there were some-had no place to turn."59 Senior management refused to listen to engineers who complained.

Chapter 12 Decision Making, Creativity, and Ethics 429

It's also likely that people take on extreme positions because they wanl to demonstrate how different they are from the outgroup.60 People on the fringes of political or social movements take on ever-more extreme positions just to prove they are really committed to the cause, whereas those who are more cautious tend lo take moderate positions to demonstrate how reasonable they are.

How should you use the findings on groupshift? Recognize that group decisions exaggerate the initial position of the individual members, that the shift has been shown more often to be toward greater risk, and that the direction in which a group will shift is a function of the members' prediscussion inclinations. Case Incident- If 1luo Heads Are Better Than One, Are Four Even Beuer? on page 44 7 considers the impact of groupshift on investment decisions.

Group Decision-Making Techniques Groups can use a variety of techniques to make decisions. We outline three of them below.

Interacting Groups The most common form of group decision making takes place in interacting groups. Members meet face lo face and rely on both verbal and nonverbal interaction to communicate wi th one ano ther. But as our d iscussion of groupth ink demonstrated, interacting groups often censor themselves and pressure individual members toward conformity of opinion. Brainstorming and lhe nominal group technique can reduce many of lhe problems inherent in the traditional interacting group.

Brainstorming Brainstorming can overcome the pressures for conform ity that dampen creativity61 by encouraging any and all alternatives while withholding criticism.

In a typical brainstorming session, 6 lo 12 people sit around a table. The group leader s tates the problem in a clear manner so that all participants unders tand it. Members then "free-wheel" as many alternatives as lhey can in a given period of lime. To encourage group members to "th ink lhe unusual,• no criticism is allowed, and all ideas are recorded for later discussion and analysis.

Brainstorming may indeed generate ideas- but not in a very efficient manner. Research consistently shows lhat individuals working alone generate more ideas than a group in a brainstormingsession.62 One reason for this is "production blocking." When people generate ideas in a group, many are talking at once, which blocks the individuals' thought process and eventually impedes the sharing of ideas.63

Nominal Group Technique The nominal group technique may be more effective. This technique restricts discus- sion and interpersonal communication during the decision-making process, hence the term nominal (which means "in name only"). Group members are all physically present, as in a trad itional commiuee meeting, but lhey operate independently. Specifically, a problem is presented and then the group takes the following steps:

• Before any discussion takes place, each member independently writes down his or her ideas on the problem.

• After this silent period, each member presents one idea lo the group. No dis- cussion takes place until all ideas have been recorded.

• The group discusses the ideas for clarity and evaluates them.

• Each group member si lently and independently ranks the ideas. The idea with the highest aggregate ranking determines the final decision.

C, Compare the effective- ness of interacting groups, brainstorming, and the nominal group technique.

interacting groups Typical groups in which members interact with one another face to face.

brainstorming An idea-generation process that specifically encour- ages any and all alternatives, while withholding any criticism of those alternatives.

nominal group technique A group decision-making method in which individual members meet face to face to pool their judgments in a system- atic but independent fashion.

430 Part 4 Sharing the Organizational Vision

EXHIBIT 12-3 Nominal Group Technique

Team members receive description of problem.

O Define creativity, and describe the three-stage model of creativity.

creativity The ability to produce novel and useful ideas.

three-stage model of creativity The proposition that creativity involves three stages: causes (creative potential and creative environment), creative behaviour, and creative out - comes (innovation).

Individual Activity

Individuals silently write down possible solutions.

Group Activity

Individuals take turns describing solutions to each other; group then discusses and evaluates ideas.

Individual Activity

Individuals silently rank (or vote on) each solution presented.

The steps of the nominal group technique are illustrated in Exhibit 12-3. The chief advantage of the technique is that il permits the group lo meet formally but does not restrict independent thinking. Research generally shows that nominal groups outper- form brainstorming groups.64

Each of these group decision techniques has its own strengths and weaknesses. The choice depends on what criteria you want to emphasize and the cost-benefit trade-off. A~ Exhibit 12-4 indica tes, an interacting group is good for achieving commitment to a solution, brainstorming develops group cohesiveness, and the nominal group technique

is an inexpensive means for generating a large number of ideas.

Creativity in Organizational Decision Making Although the rational decision-making model will often improve decisions, a decision maker also needs creativity; that is, the abil ity to produce novel and useful ideas.65

Novel ideas are different from what has been done before but are appropriate for the problem presented.

Creativity allows the decis ion maker lo fully appraise and understand problems, including seeing problems others cannot see. Such th inking is becoming more impor- tant. Although all aspects of organizational behaviour are complex, that is especially true for creativity. To simplify, Exhibit 12-5 provides a three-stage model of creativ- ity in organizations. The core of the model is creative behaviour, which has both causes (predictors of creative behaviour) and outcomes (innovation). In th is section, we discuss the three stages of creativity, s tarting with the centre, creative behaviour.

EXHIBIT 12-4 Evaluating Group Effectiveness

Type of Group

Effectiveness Criteria Interacting Brainstorming Nominal Electronic

Number and quality of ideas Low Moderate High High

Social pressure High Low Moderate Low

Money costs Low Low Low High

Speed Moderate Moderate Moderate Moderate

Task orientation Low High High High

Potential for interpersonal conflict High Low Moderate Low

Commitment to solution High Not applicable Moderate Moderate

Development of group cohesiveness High High Moderate Low

Source: Based on C. Woodyard, "Toyota Brass Shakeup Alms to Give Regions More Control,' USA Today, March 6, 20 13, www.usatoday.com/ story/money/cars/2013/00/06/toyota-shakeup/1966489/.

Chapter 12 Decision Making, Creativity, and Ethics 431

EXHIBIT 12-5 Three-Stage Model of Creativity in Organizations

Causes of creative behaviour

Creative potential Creative environment

Novelty Usefulness

Creative Behaviour Creative behaviour occurs in four steps, each of which leads lo the next:

• Problem fonn11/atio11. Any act of creativity begins with a problem that the behaviour is designed lo solve. Thus, problem formulation is defined as the s tage of creative behaviour in which we identify a problem or an opportu- nity that requires a solution as yet unknown. For example, Brendan Brazier believed at an early age that a plant-based diet could transform him into a professional athlete, so he set out to prove that by following such a diet Bra- zier attributes •c1ean eating• to his seven-year career as an Ironman Lriathlele and two-time winner of the Canadian SO-kilometre Ultra Marathon. He is also the formu lator of a line of plant-based nutritional products through his com- pany, Vega, as well as a bestsell ing author. 66

• Inforniation gathering. Given a problem, the solution is rarely directly al hand. We need time to learn more and lo process that learning. Thus, information gathering is the stage of creative behaviour when knowledge is sought and possible solutions to a problem incubate in an individual's mind. Informa- tion gathering leads us to identifying innovation opportunities.67 Niklas Laninge of Hoa's Tool Shop, a Stoclcholm-based company that helps organi- zations become more innovative, argues that creative information gathering means th inking beyond usual rou tines and comfort zones. For example, have lunch with someone outside your field to discuss the problem. "It's so easy, and you're forced to speak about your business and the things that you want to accomplish in new terms. You can't use buzzwords because people don't know what you mean: Laninge says.68

• Idea generation. Once we have collected the relevant information, it's time lo translate knowledge into ideas. Thus, idea generation is the process of cre- ative behaviour in which we develop possible solutions lo a problem from rel- evant information and knowledge. Sometimes we do this alone, when triclcs like taking a walk69 and doodling70 can jumpstart the process. Increasingly, though, idea generation is collaborative. For example, when NASA engineers developed the idea for landing a spacecraft on Mars, they did so collabora- tively. Before coming up with the Curiosity- an SUV-sized rover that lands on Mars from a sky crane- the team spent three days scribbling potential ideas on whiteboards.71

• Idea evaluation. Finally, it's Lime to choose from the ideas we have gener- ated. Thus, idea evaluation is the process of creative behaviour in which we

problem formulation The s1age of creative behaviour that involves identifying a problem or an oppor- tunity that requires a solution as yet unknown.

information gathering The stage of creative behaviour when possible solutions to a problem incubate in an individual's mind.

idea generation The process of creative behaviour that involves developing possible solutions to a problem from relevant inf0<mation and knowledge.

idea evaluation The process of creative behaviour involving the evaluation of potential solutions to problems to identify the best one.

432 Part 4 Sharing the Organizational Vision

evaluate potential solutions to identify the best one. Sometimes the method of choosing can be innovative. When Dallas Mavericks owner Mark Cuban was unhappy with the basketball team's uniforms, he asked fans lo help design and choose the best un iform. Cuban said, "What's the best way lo come up with creative ideas7 You ask for them. So we are going lo crowd source the design and colors of our uni forms."72 Generally, you want those who evaluate ideas lo be different from those who generate them, lo eliminate the obvious biases.

Case Incident- The Youngest Female Self-Made Billionaire on pages 446- 447 asks you lo consider how the three-stage model of creativity appl ies lo the success of Spanx owner Sara Blakely.

Causes of Creative Behaviour Having defined creative behaviour, the main stage in the three-stage model, we now look back lo the causes of cre- ativity: creative potential and creative environment.

Creative Potential Is there such a thing as a creative personality? Indeed. While creative genius is rare- whether in science (Stephen Hawking), art (Pablo Picasso), or business (Steve Jobs)-

\.Vhy are so1ne people n1ore creative than

others"?

most people have some of the characteristics shared by exceptionally creative people. The more of these characteristics we have, the higher our creative potential. Innovation is one of the lop organizational goals for leaders. Consider these facets of potential:

Intelligence and Creativity Intell igence is related lo creativity. Smart people are more creative because they are beuer al solving complex problems. However, intelligent individuals may also be more crea tive because they have greater "working memory"; that is, they can recall more information that is related lo the task al hand.73 Along the same lines, recent research in the Netherlands indicates that an individual's high need for cognition ( desire to learn) is correlated with greater creativity. 74

Personality and Creativity The Big Five personality trail of openness to experience (see Chapter 2) correlates with creativity, probably because open individuals are less conformist in action and more divergent in th inking.75 Other traits of creative people include proactive personality, self-confidence, risk-taking, tolerance for ambiguity, and perseverance.76 Hope, self-efficacy (belief in your capabi lities), and positive affect also predict an individual's crealivity.77 Furthermore, research in China suggests that people with high core self-evaluations are be!ler able than o thers lo maintain crea tivity in negative siluations.78 Perhaps counlerintuilively, some research supports the "mad genius" theory that some people \V ith menta l illness are wildly creative partially due lo the ir psychopathology; history certainly provides examples, such as Vincent Van Gogh, John Forbes Nash, and others. However, the converse isn't true- people who are creative may have less psychopathology as a group than the general population.79

Expertise and Creativity Expertise is the founda tion for all creative work and thus is the single most important predictor of creative potential. Fi lm writer, producer, and director Quentin Tarantino spent his youth working in a video rental store, where he built up an encyclopedic knowledge of movies. The potential for creativity is enhanced when individuals have ab ilities, knowledge, proficiencies, and similar expertise lo their field of endeavour. For instance, you would nol expect someone with minimal knowledge of programming to be very creative as a software engineer. The expertise of others is

Chapter 12 Decision Making, Creativity, and Ethics 4 33

important, too. People with larger social networks have greater exposure lo diverse ideas and informal access to the expertise and resources of others. 80

Eth ics and Creativity Although creativity is linked to many desirable individual char- acteristics, il is no t correlated with ethical i ty. People who cheat may actually be more creative than those who behave ethically, according to recent research. It may be tha t dishonesty and creativity can both stem from a rule-breaking desire.81

Creative Environment Most of us have creative potential we can learn to apply, bul as important as creative potential is, by itself il is nol enough. We need lo be in an environment where creative potential can be realized. What environmental factors affect whether creative potential translates into creative behaviours?

First and perhaps most important is molivacion. If you are nol motivated to be creative, it is unlikely that you will be. Intrinsic motivation, or the desire to work on something because it's interesting, exciting, satisfying, and challenging ( discussed in more detail in Chapters 4 and 5), correlates fai rly strongly with creative outcomes.82

It's also valuable to work in an environment that rewards and recognizes creative work. A study of health care teams found that team creativity translated into innova- tion only when the climate actively supported innovation.83 The organization should foster the free flow of ideas, including providing fair and constructive judgment. Free- dom from excessive rules encourages creativity; employees should have the freedom to decide what work is to be done and how lo do it. One s tudy in China revealed that both structural empowerment (in which the structure of the work unit allows sufficient employee freedom) and psychological empowerment (which lets the individual feel personally enabled lo decide) were related lo employee creativity.84 However, research in Slovenia found that creating a competitive cl imate where achievement at any cost is valued will stymie creativity.85

Shahrzad Rafati, founder and CEO of Vancouver-based BroadbandTV, made Fast Company's 2014 Most Creative People in Business 1000 list. When she was still an undergraduate computer science major at UBC, she came up with the idea of taking video uploaded to sites like You Tube and merging it with online advertising opportunities-bringing together both "pirates" and corporate content providers. Her com-

pany's MultiChannel Network (MCN) was ranked the third-largest on You Tube in 2014 with more than 1 .6 billion monthly views.

434 Part 4 Sharing the Organizational Vision

You may be wondering about the link between organizational resources and creativ- ity. While il is said that "necessity is the mother of invention; recent research indicates that creativity can be inspired by an abundance of resources as well. It appears that managers greatly affect the outcomes. They may be able to heighten innovation, when resources are limited, by encouraging employees to find resources for their novel ideas, and by giving direct attention to appropriate tools when resources are plentiful. 86 Man- agers also serve an important bridge role for knowledge transfer. When managers link teams to additional information and resources, radical creativity (introducing creative ideas that break the status quo) is more likely.87 The weaker lies between team members and manager networks may actually have more impact on creativity than the direct, s tronger ties that team members have with their own networks, because the weaker sources provide more divergent thinking. 88

Good leadership matters to creativity. One study of more than 100 teams working in a large bank revealed that when the leader behaved in a punitive, unsupporlive manner, the teams were less creative.89 By contrast, when leaders are encouraging in tone, run their units in a transparent fashion, and encourage the development of their employees, the individuals they supervise are more creative.90

As we learned in Chapter 6, more work today is being done in teams, and many people believe diversity will increase team creativity. Past research has suggested that diverse teams are not more creative. More recently, however, a study of Dutch teams revealed that when team members were explicitly asked to understand and consider the point of view of the other team members ( an exercise called perspective-taking), diverse teams were more creative than those wi th less diversity.91 Leadership might make the difference. One study of 68 Chinese teams reported that diversity was positively related to team creativity only when the team's leader was inspirational and instilled members with confidence. 92

There are other worthwhile find ings regarding creativity. One s tudy in a multina- tional pharmaceutical company found that teams that comprised members with diverse business functions were more creative when they shared knowledge of one another's areas of expertise.93 However, if team members have a s imilar background, creativity may be heightened only when the members are sharing specific, detailed informalion,94

s ince general information may be dismissed by members with the same expertise. As you might expect, newcomers to a team can be a rich source of creative ideas, although they are unfortunately often expected to contribute less early on.95 Putting individuals who are resistant to change into teams that are supportive of change can increase total creativity, 96 perhaps because of the group's positive influence. Collectively, these studies show that diverse teams can be more creative, especially if they are intentionally led.

Creative Outcomes (Innovation) The final stage in our model of creativity is the outcome. Creative behaviour does not always produce an innovative outcome. An employee might generate a creative idea and never share it. Management might reject a creative solution. Teams might squelch creative behaviours by isolating those who propose different ideas. A 2012 study showed that most people have a bias aga inst accepting creative ideas because ideas create uncer- tainty. When people feel uncertain, their ability to see any idea as creative is blocked.97

We can define creative outcomes as ideas or solutions judged to be novel and usefu l by relevant s takeholders. Novelty itself does not generate a creative outcome if it is not usefu l. Thus, •off-the-wall" solutions are creative only if they help solve the problem. The usefulness of the solution might be self-evident (for example, the iPad), or il might be considered successful by only the stakeholders initially.98

An organization may harvest many creative ideas from its employees and call itself innovative. However, as one expert stated, •ideas are useless unless used." Soft skills help translate ideas into results. One study found that in a large agribusiness company;

Chapter 12 Decision Making, Creativity, and Ethics 435

crealive ideas were most likely to be implemented when an individual was motivated lo lranslate the idea into practice- and had strong networking abil ity. 99 These s tudies highlighl an important fact: Crealive ideas do not implement themselves; Lranslaling lhem inlo crealive oulcomes is a social process thal requires use of olher concepls addressed in this book, including power and politics (Chapter 8), leadership (Chapter 11 ), and motivalion (Chapters 4 and 5).

From Concepts ro Shills on pages 448- 449 provides suggestions on how you can become more effective at solving problems creatively.

What About Ethics in Decision Making? TD's management, in response to the CBC report on the bank's aggressive sates goals, said that

all employees are expected to follow the company's code of ethics_ Joo TD spokesperson Daria

Hill stated that every employee must "act ethically and . . . not allow a focus on business

results to come before our focus on customers." Employees report that this makes it difficult to

meet sales targets. "I've increased people's lines of credit by a couple thousand dollars, just to

get SR [sates revenue) points," said a former teller from a Windsor, Ontario TD branch. Doing

this violated the Federal Bank Act.

How does ethics influence decision making'

No contemporary examination of decision making would be complete without the discussion of ethics, because ethical consideralions should be an important crilerion in organiza tional decision making. Ethics is lhe sludy of moral values or principles that guide our behaviour and inform us whether aclions are right or wrong. Ethical princi- ples help us "do the right thing." In th is section, we presenl four ways lo ethically frame decisions and examine the factors tha t shape an individual's ethical decision-making behaviour. We also examine ways to encourage more ethical decisions. To learn more about your approach lo ethical decision making, see the Ethical Dilemma on page 446.

Four Ethical Decision Criteria An individual can use four criteria in making ethical choices. The firsl is utilitarianism, in which decisions are made solely on the basis of their outcomes, ideally lo provide the greatesl good for the greatesl number_ IOI This view dominales business decision making and is consislenl with goals such as efficiency, productivily, and high profi ts. Keep in mind thal ulili tarianism is not always as objective as it sounds. A recent study indicated that the ethical ity of utilitarianism is influenced in ways we don' t rea lize. Parlicipanls were given a moral dilemma: The \veight of five people bends a footbridge soil is low lo some lrain tracks. A Lrain is about to hit the bridge. The choice is to let all five people perish, or push lhe one heavy man off the bridge lo save four people. In the United Stales, South Korea, France, and Israel, 20 percenl of respondenlS chose lo push the man off the bridge, in Spain, 18 percenl, and in Korea, none. These might speak to cullural util itarian values, bul a minor change, asking people to anS\ver in a non-native language they knew, caused more participants to push the man overboard: In one group, 33 per- cenl pushed the man, and in another group 44 percent did. lD2 The emolional distance of answering in a non-native language thus seemed to fosler a ulili tarian viewpoint. It appears thal even our view of what we consider pragmatic is changeable.

A second ethical crilerion is lo make decisions consislenl with fundamen tal liber- lies and privileges as sel forth in documents such as lhe Canadian Charler of Rights and Freedoms. An emphasis on rights in decision making means respecting and pro- lecling lhe basic rights of individuals, such as lhe rights lo privacy, free speech, and due process. This criterion protects whis tle-blower s rn3 when they reporl unethical or illegal practices by their organizations to the media or lo government agencies, using lheir right to free speech.

O Describe the four criteria used in making ethical decisions.

ethics The study of moral values or principles that guide our behaviour and inform us whether actions are right or wrong.

utilitarianism A decision focused on outcomes or consequences that emphasizes the greatest good for the greatest number.

whistle-blowers Individuals who report unethical practices by their employer to outsiders.

436 Part 4 Sharing the Organizational Vision

A third criterion is lo impose and enforce rules fa irly and impartially lo ensure justice or an equitable disuibution of benefits and costs.104 Justice perspectives are sometimes used to justify paying people the same wage for a given job, regardless of performance differences, and using seniority as the primary determinant in making layoff decisions. A focus on justice protects the interes ts of the underrepresented and less powerful, bul it can encourage a sense of entitlement that reduces risk-taking, innovation, and productivity.

A fourth ethical cri terion is care. The ethics of care can be s tated as follows: "The morally correct action is the one that expresses care in protecting the special relation- ships that individuals have with each other." 1°5 The care criterion suggests that we should be aware of the needs, desires, and well-being of those to \vhom we are closely connected. This perspective does remind us of the difficulty of being impartial in all decisions.

To summarize, a focus on utilitarianism promotes efficiency and productivity, but can sideline the rights of individuals with minority representation,. The use of rights protects ind ividuals but can create a legalis tic environment that hinders productivity and efficiency. A focus on justice protects the interests of the underrepresented and Jess powerful, but it can reduce risk-taking, innovation, and productivity.

Decision makers, particularly in for-profit organizations, feel comfortable with utili- tarianism. The "best interests" of the organization and stockholders can justify a lol of questionable actions, such as large layoffs. Bul many critics feel th is perspective needs to change. Publ ic concern about individual rights and social justice suggests that managers should develop ethical s tandards based on nonutilitarian criteria. This presents a chal- lenge because satisfying individual rights and social justice creates far more ambiguities than utilitarian effects on efficiency and profits. However, while raising prices, selling products with questionable effects on consumer health, dosing down inefficient plants, laying off large numbers of employees, and moving production overseas to cut costs can be justified in utilitarian terms, there may no longer be a s ingle measure by which good decisions are judged.

Murad Al-Katib, president of Regina-based AGT Food and Ingredients Inc., wanted to do good for Syrian refugees. Through his company, he got 700 million meals made from lentils, chickpeas, and wheat into the United Nations Syrian refugee program. For this he won the Oslo Business for Peace Award in 2017.106

•

. .

Chapter 12 Decision Making, Creativity, and Ethics 437

This is where corporate social responsibility (CSR) comes in to effect a positive change. A~ we can see by looking at utilitarian ideals, organizations are not motivated to respond equitably when they are looking only al a balance sheet. However, public pressure on

organizations lo behave responsibly has meant sustainability issues now affect the bottom line: Consumers increasingly choose to purchase goods and services from organizations with effective CSR initiatives, h igh performers are attracted to work at CSR organizations, governments offer incentives lo organizations for sustainabi lity efforts, and so forth. CSR is now beginning lo make good business sense, folding ethics into utilitarian computations.

Increasingly, researchers are turning to behavioural ethics-an area of study that ana lyzes how people behave when confronted with ethical di lemmas. Their research

tells us tha t while ethical standards exist collectively in societies and organizations and individually in the form of personal ethics, we do not a lways follow ethical standards promoted by our organizations, and we sometimes violate our own s tandards. Our ethical behaviour varies widely from one situation to the next. Focus on Research consid- ers why people cheat, and what organiza tions can do to limit cheating.

FD c us ~NESEARCH Why People Cheat

What makes individuals decide to cheat? We all have cheated at something.107 We could assume that deciding to cheat is a product of cold hard calculus: Is the benefit of cheating

worth the cost? Research shows, however, that cheating is less rational than expected. Several 2012 research projects yielded the following insights about how organizations can

stem cheating and other unethical behaviour:

• Cheating happens away from the cash. One study found that pecple steal more when they are a couple of steps removed from the cash. For example, one gallery's

gift shop was hemorrhaging money, but the reason was that volunteers were helping

themselves to merchandise, not the cash drawer. Similarly, when researchers put six packs of Coke and six $1 bills in dorm fridges, every Coke was gone within 72 hours,

but none of the cash.

• Cheating is contagious. A study of high school students in upper-middle-class com- munities revealed that among the 93 percent who admitted to cheating, the top

reason was the peNasiveness of cheating by others. A recent study of accounting

undergraduates revealed that cheating was most likely among students who reported having recently seen cheating and having friends who cheated.

• Moods affect cheating. Research shows that people cheat more when they are angry or tired. This insight reveals another positive dividend of trying to reduce negative

moods at work. • Incentives matter. Studies suggest that high-stakes outcomes create cheating as an

inevitable consequence. Coaches, CEOs, and political leaders should still be held

accountable, but it's helpful to understand circumstances in which expectations may

seem attainable only by cheating . •..........................................•

Making Ethical Decisions How m ight we increase ethical decision-making in organizations? First, sociologist James Q. Wilson proposed the brohen windows theory- the idea that decayed and disorderly urban environments may facilitate criminal behaviour because they signal antisocial norms. Although controversial, the theory does fit with behavioural ethics research show- ing that seemingly superficial aspects of the environment- such as ligh ting, outward d isplays of wealth and s tatus, and cleanliness- can affect ethical behaviour in organiza- tions_ IDS Managers mus t first realize that ethical behaviour can be affected by s ignals;

behavioural ethics Analyzing how people actually behave when con- fronted with ethical dilemmas.

4 38 Part 4 Sharing the Organizational Vision

for example, if signs of status and money are everywhere, an employee may perceive those, rather than ethical standards, to be of the highest importance. Second, managers should encourage conversations about moral issues; they may serve as a reminder and increase ethical decision making. One study found that simply asking business school students to th ink of an ethi- cal s ituation had powerful effects when they were making ethical choices later.1D9 Finally, we should be aware of our own moral "blind spots•- the tendency to see ourselves as more moral than we are and others as Jess moral than

How can people make 1nore

ethical they are. An environment that encourages open discussions decisions'? and does no t penalize people for coming forward is key to overcoming blind spots and increasing the e thicality of decision making. 110

Behavioural e th ics research stresses the importance of culture to ethical decision making. There are few global standards for e th ical decision making, 111 as contrasts between A~ia and the West illustrate. For example, because bribery is more common in countries such as China, a Canadian working in China might face a dilemma: Should I pay a bribe to secure business if it's an accepted part of that country's culture? Although some companies such as IBM explicilly address this issue, many don't. Without sensitiv- ity to cultural differences as part of the definition of ethical conduct, organizations may encourage unethical conduct without even knowing it.

Whi le the difference between an ethical and unethical decision is not always clear- cut, there are some questions you should consider. Exhibit 12-6 illustrates a decision tree to guide ethical decision making.112 This tree is built on three of the ethical deci- sion criteria- utilitarianism, rights, and justice- presented earlier. The first question you need to answer addresses self-interest vs. organizational goals.

r \

Some retailers refused to carry lvanka Trump clothes, and Silicon Valley executives have spoken out against Donald Trump. But Ottawa-based Shopify has resisted calls to not allow Breitbart News to use their plat-

fonn to sell political merchandise. Breitbart had been one of the most outspoken supporters of Donald Trump before the election, and continues to be so. Shopify co-founder Tobias Lutke calls it a free speech matter. "This means protecting the right of organizations to use our platform even if they are unpopular or if we disagree with their premise, as long as they are within the law. That being said, if Breitbart calls us tomorrow and tells us that they are going to switch to another platform, we would be delighted." 113 Liitke's choice shows that ethical decision making is not easy, and different people can make different choices.

Chapter 12 Decision Making, Creativity, and Ethics 439

EXHIBIT 12-6 Is a Decision Ethical?

Is the decision motivated by self-serving

interests?

Unethical I

Question 2

Does the decision respect the

rights o f the individuals affected?

Question 3

Is the decision fair and equitable?

Unethical

The second question concerns the rights of other parties. If the decision violates the rights of someone else (the person's right lo privacy, for instance), then the decision is unethical.

The final question that needs lo be addressed relates lo whether the decision con- forms lo standards of fa irness and equily. The department head who infla tes the perfor- mance evaluation of a favoured employee and deflates the evaluation of a disfavoured employee- and then uses these evaluations to justify giving Lhe former a big raise and nothing lo the lauer- has treated the disfavoured employee unfairly.

Unfortunately, the answers lo the questions in Exhibit 12-6 are often argued in ways lo make unethical decisions seem ethical. Powerful people, for example, can become very adept al explaining self-serving behaviours in terms of Lhe organization's besl interests. Similarly, they can persuasively argue that unfair actions are really fa ir and jus t. Our point is thal immoral people can justify almost any behaviour. Those who are powerful, articulate, and persuasive are the mosl likely lo be ab le lo get away with uneth ical actions successfully. When faced with an ethical di lemma, try to answer the questions in Exhibit 12-6 truthfully. Organizations that don'l foster a strong culture of ethics may find themselves facing disaster, as the story of now-bankrupl Montreal, Maine and Atlantic Ra ilway (MMA), discussed in OB in the Workplace, shows.

OB IN THE =.... WORKPLACE The Ethics of Fostering a "Culture of Shortcuts"

How can an organization's culture contribute to a deadly disaster? The Transportation Safely Board of Canada's reporl aboul the Lac-Megan tic, Quebec, derai lment that killed 47 people and obl iterated part of Lhe town indicated that MMA's lax attitude toward safety conlribuled lo Lhe disaster. 114 "'The TSB found MMA was a company with a weak safely culture tha t did not have a functioning safely management system lo manage risks," the agency said. The company's approach lo safely represents a significant breach of ethics given the threat posed by a lack of appropriate s tandards in the rai l industry. Gaps in training, employee monitoring, and maintenance were noted. One such gap, a failure to properly lest the air brake system, contributed directly to the tragic events of July 6, 2013. From all indications, th is •culture of shortcuts" was well established. Management's decision to let lh is culture flourish ullimalely led MMA to disaster, bankruplcy, and ruin . ......................................................... .

Ethical

Unethical

440 Part 4 Sharing the Organizational Vision

Decision Making The rational decision-making model makes no acknowledgment of cultural differences, nor does the bulk of OB research literature on decision making.

However, we need lo recognize that the cultural background of a decision maker can have a significant influence on the selection of problems, the depth of analysis, the importance placed on logic and rationality, and whether organizational decisions should be made au tocratically by an individual manager or collectively in groups.

Cultures differ in their time orientation, the importance of rational ity, their belief in the abil ity of people to solve problems, and their preference for collective decision making. Differences in time orientation help us understand why managers in Egypt make decisions at a much slower and more deliberate pace than their US counterparts. While rationality is valued in North America, that is not true elsewhere in the world. A North American manager might make an important decision intuitively but know it's important lo appear to proceed in a rational fashion because rationality is highly va lued in the West. In countries such as Iran, where rationality is not as paramount as other factors, efforts to appear rational are nol necessary.

Some cul lures emphasize solving problems, while others focus on accepting situa- tions as they are. Canada falls in the first category; Thai land and Indonesia are examples of the second. Because problem-solving managers believe they can and should change situations to their benefit, Canadian managers migh t identify a problem long before their Thai or Indonesian counterparts would choose to recognize il as such. Decision making by Japanese managers is much more group-oriented than in Canada. The Japa- nese value conformity and cooperation. So before Japanese CEOs make an important decision, they collect a large amount of information, which they use to form consensus when making group decisions.

In short, there are probably important cultural differences in decision making, but unfortunately no t yet much research to identify them.

Creativity One study suggests that countries scoring high on Hofstede's culture dimension of indi- viduali ty (d iscussed in Chapter 3) are more creative. 115 Western countries such as the United States, Italy, and Belgium score high on individuality, and South American and Eastern countries such as China, Colombia, and Pakistan score low. Do these findings mean that Western cul lures are more creative? Some evidence suggests that this is true. Another study compared the creative projects of German and Chinese college students, some of whom were studying in their homeland, and some of whom were s tudying abroad. An independent panel of Chinese and German judges determined that the German students were most creative and that Asian German s tudents were more creative than domestic Chinese s tudents. These resu lts suggested that the German culture was more crealive.116 However, even if some cultures are more creative on average, strong varia tions always occur with in cul lures. Put another way, mill ions of Chinese are more creative than their US counterparts.

Ethics Although ethical standards may seem ambiguous in the West, criteria defining right and wrong are actually much clearer there than in Asia, where few issues are black and white and most are grey. In Japan, people doing business together often exchange gifts, even

Chapter 12 Decision Making, Creativity, and Ethics 441

expensive ones. This is part of Japanese tradition. When North American and European companies s tarted doing business in Japan, most North American executives were not aware of the Japanese trad ition of exchanging gifts and wondered whether this was a fo rm of bribery. Most have come to accept th is trad ition now, and have even set differ- ent limits on gift giving in Japan than in other countries.

Global organizations must establish ethical principles for decision makers in coun- tries such as India and China and modify them to reflect cultural norms if they want lo uphold high standards and consis tent practices. Having agreements among countries to police bribery may not be enough, however. The 34 countries of the Organisation fo r Economic Co-operation and Development (OECD) entered into an agreement to tackle corporate bribery in 1997. However, a s tudy by Berlin-based Transparency Inter- national found that 21 of the OECD countries are "doing little or nothing" to enforce the agreement. Canada came under strong criticism for being "the only G7 coun try in the little or no enforcement ca tegory." The United States and Germany rated highest on number of cases filed. Transparency International noted that Canada needed lo enforce more of its Jaws in th is area. 11 7

Summary An understanding of the way people make decisions can help us explain and predict behaviour, but few important decisions are simple or unambiguous enough for the rational decision-making model's assumptions to apply. We find individuals looking for solutions that satisfice rather than optimize, injecting biases into the decision process, and relying on intuition. Managers should encourage creativity in employees and teams to create a route to innovative decision-making. Individuals are more likely to make ethical decisions when the culture in which they work supports ethical decision making.

SNAPSHOT SUMMARY ·

How Should Decisions Be Made? • The Rational Decision-Making

Process

How Do Individuals Actually Make Decisions?

• Bounded Rationality in Considering Alternatives

• Intuition • Judgment Shortcuts

Group Decision Making

• Groups vs. the Individual

• Groupthink and Groupshift • Group Decision-Making

Techniques

Creativity in Organizational Decision Making

• Creative Behaviour

• Causes of Creative Behaviour

• Creative Outcomes Qnnovation)

What About Ethics in Decision Making?

• Four Ethical Decision Criteria • Making Ethical Decisions

LESSONS LEARNED

• Individuals often short-cut the decision-making pro- cess and do not consider all options.

• In tuition leads to better results when supplemented with evidence and good judgment.

• Exceptional creativity is rare, but expertise in a subjea and a creative environment encourage novel and useful creative outcomes.

Myl ab Management Study, practise, and explore real business situations with these helpful resources:

• Study Plan: Check your understanding of chapter concepts with self-study quizzes.

• Online Lesson Presentations: Study key chapter topics and work through interactive assessments to test your knowledge and master management concepts.

• Y-Kleos: learn more about the management practices and strategies of real companies.

• Simulations: Practise management decision-making in simulated business environments.

-"' a:I C)

.,. for Review

1 . What is the rational model of decision making? How is it dif- ferent from bounded rationality and intuition?

2. What are some common deci- sion biases or errors people

make?

3. What are the strengths and weaknesses of group (vs. individual) decision making?

4. How effective are interacting groups, brainstorming, and the nominal group technique?

5. What is creativity, and what is the three-stage model of

creativity?

6. What are the four criteria used in making ethical decisions, and how do they differ?

for Managers

• Make better decisions by rec- ognizing perceptual biases and decision-making errors we tend to commit. Leaming about these problems doesn't always prevent us from making mistakes, but it does help.

• Adjust your decision-making approach to the national culture you are operating in and to the criteria your organization values. If you operate in a country that does not value rationality, don't feel compelled to follow the ratio- nal decision-making model or to try to make your decisions appear rational. Adjust your decision- making approach to ensure com- patibility with the organizational culture.

• Combine rational analysis with intuition. These are not conflicting approaches to decision making. By using both, you can actually improve your decision-making effectiveness.

• Try to enhance your creativity. Actively look for novel solutions to problems, attempt to see prob- lems in new ways, use analogies, and hire creative talent. Try to remove work and organizational barriers that might impede your creativity.

for You

• In some decision situations, consider following the rational decision-making model. Doing so will ensure that you review a wider variety of options before commit - ting to a particular decision.

• Analyze the decision situation and be aware of your biases. We all bring biases to the decisions we make.

• Combine rational analysis with intuition. As you gain experience, you should feel increasingly con- fident in imposing your intuitive processes on top of your rational analysis.

• Use creativity-stimulation tech- niques. You can improve your overall decision-making effective- ness by searching for innovative solutions to problems. This can be as basic as telling yourself to think creatively and to look spe- cifically for unique alternatives.

• When making decisions, think about their ethical implications. A quick way to do this is to ask yourself: Would I be embarrassed if this action were printed on the front page of the newspaper?

Chapter 12 Decision Making, Creativity, and Ethics

PEOPLE ARE MORE CREATIVE WHEN THEY WORK ALONE

POI NT COUNTERPOINT - - - - I know groups are all the rage.118 Businesses are knocking down walls and cubicles to create more open, •collaborative" environments. "Self-managing teams• are replacing the traditional middle manager. Students in universities are constantly working on group projects, and even young children are finding themselves learning in small groups.

I also know why groups are all the rage. Work, they say, has become too complex for individuals to perform alone. Groups are better at brainstorming and coming up with creative solutions to complicated problems. Groups also produce higher levels of commitment and satisfaction- so long as group members develop feel- ings of cohesiveness and trust one another.

For every group that comes up with a creative solu- tion, I'll show you twice as many individuals who would come up with a better solution had they only been left alone. Consider creative geniuses like Leonardo DaVinci, Isaac Newton, and Pablo Picasso- or, more recently, Steve Wozniak, the co-founder of Apple Computer. All were introverts who toiled by themselves. Wozniak has been quoted as saying "Work alone ... not on a com- mittee. Not on a team.•

Enough anecdotal evidence. Research has also shown that groups can kill creativity. One study found that computer programmers at companies that give them privacy and freedom from interruptions outperformed their counterparts at companies that forced more open- ness and collaboration. Or consider Adrian Fumham, an organizational psychologist whose research led him to conclude that "business people must be insane to use brainstorming groups." People slack off in groups, and they are afraid to communicate any ideas that might make them sound dumb. These problems don't exist when people work alone. So take Picasso's advice: "Without great solitude, no serious work is possible."

I will grant your point that there are circumstances in which groups can hinder creative progress, but if the right conditions are put in place, groups are simply much better at coming up with novel solutions to prob- lems than are individuals. Using strategies such as the nominal group technique, generating ideas electronically rather than face to face, and ensuring that individuals do not evaluate others' ideas until all have been generated are just a few ways you can set up groups for creative

success. The fact of the matter is that problems are too com-

plex these days for individuals to effectively perform alone. Consider the Rovers launched by NASA to roam around Mars collecting data. An accomplishment like that is made possible only by a group, not a lone indi· vidual. Steve Wozniak's collaboration with Steve Jobs is what really made Apple sail as a company.

In addition, the most influential research is conducted by teams of academics, rather than individuals. Indeed, if you look at recent Nobel Prize winners in areas such as economics, physics, and chemistry, the majority have been academics who collaborated on the research.

So if you want creativity, two heads are in fact better than one.

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BREAKOUT GROUP EXERCISES

Forni small groups to discuss the following topics, as assigned by your instructor:

1. Apply the rational decision-making model to deciding where your group might eat dinner this evening. How closely were you able to follow the rational model in making this decision?

2. The company that makes your favourite snack product has been accused of being weak in its social responsibil- ity efforts. What impact will this have on your purchase of any more products from that company?

3. You have seen a classmate cheat on an exam or an assignment. Do you do something about this or ignore it?

EXPERIENTIAL EXERCISE

Wilderness Survival You are a member of a hiking party. After reaching base camp on the first day, you decide to take a quick sunset hike

by yourself. After a few exhilarating miles, you decide to return to camp. On your way back, you realize that you are lost.

You have shouted for help, to no avail. It is now dark and getting cold.

Your Task

Without communicating with anyone else in your group, read the following scenarios and choose the best answer. Keep

track of your answers on a sheet of paper. You have 10 minutes to answer the 10 questions.

1. The first thing you decide to do is to build a fire. However, you have no matches, so you use the bow and drill method. What is the bow and drill method?

a. A dry, soft stick is rubbed between one's hands against a board of supple green wood.

b. A soft green stick is rubbed between one's hands against a hardwood board.

c . A straight stick of wood is quickly rubbed back and forth against a dead tree.

d. Two sticks (one being the bow, the other the drill) are struck to create a spark.

2. It occurs to you that you can also use the fire as a distress signal. How do you forn, the international distress signal?

a. 2 fires

b. 4 fires in a square

c . 4 fires in a cross

d. 3 fires in a triangle

3. You are very thirsty. You go to a nearby stream and collect some water in the small metal cup you have in your backpack. How long should you boil the water?

a. 15 minutes

b. 1 minute

c . A few seconds

d. It depends on the altitude.

4. You are very hungry, so you decide to eat what appear to be edible berries. When pertonning the universal edibil- ity test, what should you do?

a. Do not eat for 2 hours before the test.

b. If the plant stings your lip, confirn, the sting by holding it under your tongue for 15 minutes.

c . If nothing bad has happened 2 hours after digestion, eat half a cup of the plant and wait again.

d. Separate the plant into its basic components and eat each component, one at a time.

5. Next, you decide to build a shelter for the evening. In selecting a site, what do you not have to consider? a. It must contain material to make the type of shelter you need.

b. It must be free of insects, reptiles, and poisonous plants.

c . It must be large enough and level enough for you to lie down comfortably.

d. It must be on a hill so you can signal rescuers and keep an eye on your surroundings.

Chapter 12 Decision Making, Creativity, and Ethics 445

6. In the shelter that you built, you notice a spider. You heard from a fellow hiker that black widow spiders populate the area. How do you identify a black widow spider?

a. Its head and abdomen are black; its thorax is red.

b. It is attracted to light.

c. It runs away from light.

d. It is dark with a red or orange marking on the female's abdomen.

7. After getting some sleep, you notice that the night sky has cleared, so you decide to try to find your way back to base camp. You believe you should travel north and can use the North Star for navigation. How do you locate the North Star?

a. Hold your right hand up as far as you can and look between your index and middle fingers.

b. Rnd Sirius and look 60 degrees above ii and to the right.

c. Look for the Big Dipper and follow the line created by its cup end.

d. Follow the line of Orion's belt.

8. You come across a fast -moving stream. What is the best way to cross it?

a. Rnd a spot downstream from a sandbar, where the water will be calmer.

b. Build a bridge.

c. Rnd a rocky area, because the water will be shallow and you will have hand- and footholds.

d. Rnd a level stretch where it breaks into a few channels.

9. After walking for about an hour, you feel several spiders in your clothes. You don't feel any pain, but you know some spider bites are painless. Which of these spider bites is painless?

a. Black widow

b. Brown recluse

c. Wolf spider

d. Harvestman (daddy longlegsJ

10. You decide to eat some insects. Which insects should you avoid?

a. Adults that sting or bite

b. Caterpillars and insects that have a pungent odour

c. Hairy or brightly coloured ones

d. All the above

Group Task Break into groups of 5 or 6 people. Now imagine that your whole group is lost. Having written down your own answers

first, compile your group's answers using consensus to reach each decision. Once the group comes to an agreement, write the group decisions down on the same sheet of paper that you used for your individual answers. You will have

approximately 20 minutes for the group task.

Scoring Your Answers Your instructor will provide you with the correct answers, which are based on expert judgments in these situations. Once

you have received the answers, calculate (AJ your individual score; (BJ your group's score; (C) the average individual score in the group; and (DJ the best individual score in the group. Write these down and consult with your group to

ensure that these scores are accurate.

(A) Your individual score ___ _

(Bl Your group's score ___ _

(D) Best individual score in group ___ _

Discussion Questions

1. How did your group (B) perform relative to yourself (AJ?

2. How did your group (B) perform relative to the average individual score in the group (CJ?

3. How did your group (B) perform relative to the best individual score in the group (D)?

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4. Compare your results with those of other groups. Did some groups do a better job of outperforming individuals than others?

What do these results tell you about the effectiveness of group decision making?

What can groups do to make group decision making more effective?

7. What circumstances might cause a group to perform worse than its best individual?

ETHICAL DILEMMA

Five Ethical Decisions: What Would You Do? Assume that you are a middle manager in a company

with about 1000 employees. How would you respond to

each of the following situations? 119

1. You are negotiating a contract with a potentially very large customer whose representative has hinted that you could almost certainly be assured of get- ting his business if you gave him and his wife an all- expenses-paid cruise to the Caribbean. You know the representative's employer would not approve of such a "payoff," but you have the discretion to authorize such an expenditure. What would you do?

2. You have an autographed CD by Sam Roberts and put it up for sale on eBay. So far, the highest bid is $7 4.50. A friend has offered you $100 for the CD, commenting that he could get $150 for it on eBay in a year. You know this is highly unlikely. Should you sell your friend the CD for what he offered ($100)? Do you have an obligation to tell your friend you have listed your CD on eBay?

3. Your company policy on reimbursement for meals while travelling on company business is that you will be repaid for your out-of-pocket costs, which are not to exceed $80 a day. You don't need receipts for these expenses- the company will take your

word. When travelling, you tend to eat at fast-food places and rarely spend in excess of $20 a day. Most of your colleagues submit reimbursement requests in the range of $55 to $60 a day regard- less of what their actual expenses are. How much would you request for your meal reimbursements?

4. You are the manager at a galling company, and you are responsible for hiring a group to outsource the production of a highly anticipated new game. Because your company is a giant in the induslly, numerous companies are trying to get the bid. One of them offers you some kickbacks if you give that firm the bid, but ultimately, it is up to your bosses to decide on the company. You don't mention the incentive, but you push upper management to give the bid to the com- pany that offered you the kickback. Is withholding the truth as bad as lying? Why or why not?

5. You have discovered that one of your closest friends at work has stolen a large sum of money from the company. Would you do nothing? Go directly to an executive to report the incident before talking about it with the offender? Confront the individual before tak- ing action? Make contact with the individual with the goal of persuading that person to return the money?

CASE INCID ENT S

The Youngest Female Self-Made Billionaire Picture this: 120 The billionaire owner and founder stands

in the conference room trying on bras while the CEO

stands behind her, adjusting the straps. The floor is lit-

tered with underwear. The owner takes off one bra and

puts on another. Rve executives in the conference room

barely blink.

Welcome to Sara Blakely's company, Spanx. In just a

few years, Spanx became to slimming underwear what

JELL-0 is to gelatin and Kleenex is to facial tissue: So

dominant that its name is synonymous with the industry.

At 45, Blakely is one of the youngest billionaires in the

world. Like many stories of entrepreneurial success, hers

is part gritty determination, part inspiration, and part c ir-

cumstance. The grit was easy to see early on. As a child

she lured friends into doing her chores by setting up a

competition. At 16, Blakely was so intent on success that

Chapter 12 Decision Making, Creativity, and Ethics 447

she listened to self-help guru Wayne Dyer's recordings

incessantly. Friends refused to ride in her car. "No! She's

going to make us listen to that motivational crap!" Blakely

recalls they said.

After twice failing to get into law school, Blakely started

her first business in 1990, running a kids' club at the

Clearwater Beach Hilton. It worked until the Hilton's gen-

eral manager found out. Later, while working full -time in

sales, Blakely began learning how to start a more viable

business. Her inspiration for Spanx came while she was

cold-calling customers as a sales manager for an office

supply company. She hated pantyhose. "It's Florida, it 's

hot, I'm carrying copy machines," she noted.

At t he library, Blakely researched every pantyhose

patent ever filed. She wrote her patent application by fol-

low ing a textbook she read in Barnes & Noble. Then she worked on marketing, manufacturing, and financing, treat- ing each as its own project. After numerous rejections, she

finally found mill owners in North Carolina willing to finance

the manufacturing. "At the end of the day, the guy ended

up just wanting to help me,• Blakely said . "He didn't even

believe in the idea."

For a time, Blakely relied on US stores such as Neiman

Marcus to set up her table and on word-of-mouth to get

the news out to the public. Her big break came when she

sent samples to Oprah Winfrey's stylist. Harpo Produc-

tions called to say that Winfrey would name Spanx her

favourite product of the year and warned Blakely to get

her website ready. She did not have a website.

Billions of dollars in sales later, Blakely has no plans

to slow down. Spanx is sold in 55 countries, and Blakely

wants to double international sales. She says: "The biggest

risk in life is not risking. Every risk you take in life is in direct

proportion to the reward. If I'm afraid of something, it's the

next thing I have to go do. That 's just the way I've been.•

Questions

1. Does hindsight bias affect the factors to which you might attribute Blakely's success? Why or why not?

2. Use the three-stage model of creativity to analyze

Blakely's decision making. What can you learn from

her story that might help you be more creative in the

future?

If Two Heads Are Better Than One, Are Four Even Better?

Maggie Becker, age 24, is a marketing manager for

a small chain of shops in Halifax. Recently, Maggie's

wealthy uncle passed away and left her, his only niece,

$ 100 000. Maggie considers her current salary adequate

to meet her current living expenses, so she would like to

invest the money so that when she buys a house she will

have a nice nest egg on which to draw.

One of Maggie's neig hbours , Br ian, is a fi nanc ial

adviser. Brian told Maggie that the array of investment

options is virtually endless. She asked him to present her

with two of the best options, and this is what he offered

her:

1. A very low-risk AAA bond fund. With this option, based on the information Brian provided, Maggie

estimates that after five years she stands virtually

zero chance of losing money, with an expected gain

of approximately $7000.

2. A moderate-risk mutual fund. Based on the infor-

mation Brian provided her, Maggie estimates that

with this option she stands a 50 percent chance of

making $40 000 but also a 50 percent chance of

losing $20 000.

Maggie prides herself on being rational and objective

in her thinking. However, she is unsure of what to do in

this case. Brian refuses to help her, telling her that she has

already limited herself by asking for only two options. While

driving to her parents' house for the weekend, Maggie

finds herself vacillating between the two options. Her older

brother is also visiting the folks this weekend, so Maggie

decides to gather her family around the table after dinner,

lay out the two options, and go with their decision. "You

know the old saying - two heads are better than one,"

she says to herself, "so four heads should be even better."

Questions

1. Has Maggie made a good decision about the way she is going to make the decision?

2. Which investment would you choose? Why?

3. Which investment do you think most people would

choose?

4. Based on what you have learned about groupshift, which investment do you think Maggie's family will

choose?

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Solving Problems Creatively Reaching creative solutions

to problems can improve one's

decision-making abilities .

You can be more effective at solving problems creatively if you use the

following 1 O suggestions: 121

1. Think of yourself as creative. Research shows that if you think you cannot be creative, you won't be. Believing in your ability to be creative is the first step in becoming more c reative.

2. Pay attention to your intuition. Every individual has a subconscious mind that works well. Sometimes answers will come to you when you least expect them. Listen to that "inner voice." In fact, most creative people will keep a notepad near their bed and write down ideas when the thoughts come to them.

3. Move away from your comfort zone. Every individual has a comfort zone in which certainty exists. But creativity and the known often do not mix. To be creative, you need to move away from the status quo and focus your mind on something new.

4. Determine what you want to do. This includes such things as taking time to understand a problem before beginning to try to resolve it, getting all the facts in mind, and trying to identify the most important facts.

5. Think outside the box. Use analogies whenever possible (for example, could you approach your problem like a fish out of water and look at what the fish does to cope? Or can you use the things you have to do to find your way when it's foggy to help you solve your problem?). Use different problem-solving strategies, such as verbal, visual, mathemati- cal, or theatrical. Look at your problem from a different perspective, or ask yourself what someone else, such as your grandmother, might do if faced with the same situation.

6. Look for ways to do things better. This may involve trying consciously to be original, not worrying about looking foolish, keeping an open mind, being alert to odd or puzzling facts, thinking of unconventional ways to use objects and the environment, discarding usual or habitual ways of doing things, and striving for objectivity by being as critical of your own ideas as you would be of someone else's.

7. Rnd several right answers. Being creative means continuing to look for other solutions even when you think you have solved the problem. A better, more creative solution just might be found.

8. Believe in finding a workable solution. Like believing in yourself, you also need to believe in your ideas. If you don't think you can find a solution, you probably won't.

9. Brainstorm with others. Creativity is not an isolated activity. Bouncing ideas off of others c reates a synergistic effect.

10. Turn creative ideas into action. Coming up with creative ideas is only part of the process. Once the ideas are generated, they must be implemented. Keeping great ideas in your mind, or on papers that no one will read, does little to expand your c reative abilities.

Chapter 12 Decision Making, Creativity, and Ethics 449

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

Every time the phone rings, your stomach clenches and your palms start

to sweat. And it's no wonder! As sales manager for Brinkers, a machine

tool parts manufacturer, you are besieged by calls from customers Who

are upset about late deliveries. Your boss, Carter Hererra, acts as both

production manager and scheduler. Every time your sales representatives

negotiate a sale, it 's up to Carter to determine Whether production can

actually meet the delivery date the customer specifies. Carter invariably

says, "No problem." The good thing about this is that you make a lot of ini-

tial sales. The bad news is that production hardly ever meets the shipment

dates that Carter authorizes. Moreover, he does not seem to be all that

concerned about the aftermath of late deliveries. He says: •o ur customers

know they're getting outstanding quality at a great price. Just let them try

to match that anywhere. It can't be done. So even if they have to wait a

couple of extra days or weeks, they' re still getting the best deal they can."

Somehow the customers don't see it that way, and they let you know

about their unhappiness. Then it's up to you to try to soothe the relation-

ship. You know this problem has to be taken care of, but What possible

solutions are there? After all, how are you going to keep from making your

manager angry or making the customers angry? Use your knowledge of

creative problem solving to come up with solutions.

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

1. Take 20 minutes to list as many words as you can using the letters in the word brainstorm. (There are at least 95.) If you run out of listings before time is up, it's okay to quit early. But try to be as creative as

you can.

2. List on a piece of paper some common terms that apply to both water and finance. How many were you able to come up with?

•••••••••••••••••••••

Practising Skills

Reinforcing Skills

• ••••••

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------ •

Savannah Olsen won the National Youth Aboriginal Entrepreneur Award in 2014 for creating the Old Faithful store, located in Vancouver.1

She has always been an entrepreneur, with lots of busi- ness ideas running around in her head. In 2016 she opened a new store in Vancouver, The Good Spirit, right next door to Old Faithful.

The award was developed by the Canadian Council for

•

• · "r1o "

Aboriginal Business. CCAB board member and co-chair Erin Meehan congratulated Olsen by saying, "Your accom- plishments are proof that when you dream, big things happen and lives change."

Olsen is back to dream- ing about changing lives. The Good Spirit caters to the spiritual side of one's nature. "My vision was to conjure all those factors together in one store that would encourage

younger people, and anyone really, to explore their own path of spirituality," she said.

Olsen's store sells carefully selected tools to help peo- ple in their personal spiritual development. There is also a tarot studio where custom- ers can get readings. Olsen hopes what she has created with The Good Spirit will help her customers "approach spirituality in an easy, open and accessible way."

While it might not be common to find spirituality stores on every street corner, spirituality is also coming to the workplace.

\Vhat Is Spirituality? Workp lace sp iri tuality is not about organized religious practices. It's not about God or theology. This po in t was made clear in a recen t study of 275 natural and social scientists at el ite un iversities. About 25 percent "said they have a spiritual ity that is cons is- tent with science, although they are not formally rel igious.'2

Workplace spir ituality recogn izes tha t people have an inner l ife that nourishes and is nourished by mean- ingful work in the context of commu- n ity. 3 Organizations that support a spiritual culture recogn ize that people seek to find mean ing and purpose in their work and desire to connect with other human beings as part of a com- munity. Many of the topics we have discussed-ranging from job design to corporate social responsibility (CSR)- are well ma tched to the concept of organiza tional sp iri tuality. When a company empha~izes its commitment to paying suppliers in develop ing countries a fa ir (above-market) price for their goods to facilitate community development-as do Vancouver-based Maiwa Handprints; Ha li fax-based Fibres of Life; Hudson, Quebec-based Pure Art; and Whitehorse-based Bean North Cafe-it encourages a more

spiritual culture.4

workplace spirituality The recognition !hat people ha11e an inner life !hat nourishes and is nourished by meaningful wor1< that takes place in the 0011text of community.

\Vhy Spirituality Now?

Blake Ashforth of Arizona State Univers ity and Michael Pratt of the Univers ity of Ill ino is propose that workplace sp iritual ity has three major dimens ions:

• Transcendence of self a connection to something greater than one's self, and encompassing other people and th ings

• Ho/ism and harmony: integration of self in such a way that it informs one's behaviour

• Growtlr: self-development, self- actualization, and ach ieving one's hopes and potential

When pursued together, these three dimensions lead to connection, coher- ence, and completeness. 5

As noted in our discuss ion of emo- tions in Chapter 3, there is con troversy over whether feelings should be dis- played in the workplace. At the same t ime, employers a re showing more concern about an employee's inner li fe. Just as the study of emot ions improves our understanding of orga- nizational behaviour, an awareness of spiritua lity can help us better under- stand employee behaviour. Similarly, organizations that are concerned with sp irituality are more likely to d irectly address problems created by confl icts that occur in everyday life. G

Reasons for the Growt Interest In •-•rttu ng -- •• ,.,. • Spirituality a t c s as a counterbal

of a turbulent pace of life C ance to the pressures and stres families geo . . ontemporary lifest I . s

· graphical mobility th Y es-s,ngle-parent technologies that create dist . e temporary nature of jobs new the lack f ance between P · o community man eople-underscore involvement and connectio:. People feel and increase the need for

• Formalized religion has not continue to look tor worked for many people g . anchors to repl . and they

rowing feeling of emptiness. ace lack of faith and to fill a • Jobd . emands have made the w

lives. yet they continue to questi~:ace dominant in many PeOp/e's • More People desire to . e meaning of work.

Professional life. integrate Persona/ life values with their

• An increasing number of peop1 material acquisitions leaves th e are finding that the Pursuit of mo

em unfulfilled. re

451

Of course, employees have always had an inner l ife. So why has the search fo r meaning and purpose- fulness in work surfaced now? We summarize the reasons in the inset Reasons for tire Growing Interest in Spiriwality.

Spirituality and Mindfulness

Recently, m indfulness has become part of the discussion on spiritua l- ity in the wo rkplace. Ellen J. Langer, Harvard professor of psychology, has been studying mindfulness for much of her academ ic career. She defines m indfulness as ' the process of actively no tic ing new th ings. When you do that, it puts you in the p resent. It makes you more sens itive to context and perspective . It's the essence of engagemenL •7

tvl indfulness means staying aware in the present and no t simply accept- ing that ' this is the way we have always done th ings." Langer expla ins

how to make th is possible: ' When you' re m indful, rules, routines, and goa ls gu ide you; they don ' t gov- ern you. • 9 The inset Advantages to Mindfulness presen ts Langer's reasons to be m indful.

What is Lange r's advice about being m indful? ' Life consists only of moments, noth ing more than thaL So if you make the moment matter, it all matters. You can be mindful, you can be mindless. You can win, you can lose. The worst case is to be mindless and lose. So when you're doing anything, be mind- ful, notice new th ings, make it meaning- ful to you, and you'll prosper."10

Medi tation is one way to become more mindful. Professor Jamie Gruman, at the College of Business and Economics at the University of Guelph, who studies meditation in the workplace, notes that "research shows people who meditate suffer from less stress, are less rigid in their thinking and are less likely to have overly emo- t ional reactions to d ifficulties. All of these th ings are qualities of effective

Pay attention. • It's easier to t ou've done. You remember more of wha y

• . they present • You're more creatNe, i opportunities when

t take advantage o • You' re able o

themselves. et arisen. u're rt the danger not y . better, because yo

• y0u ave d eople like you • You like people better, an P

452

less evaluative. · matic.8

• You're more chans

work ing and management decis ion making." 11

Research also shows that engaging in med itation helps people be more creative;12 and that just three succes- sive days of 25 m inu tes of m indful- ness med itation can effectively reduce stress. 13 Fifteen m inutes of m indful medi tation was found to be helpful in stopping ind ividuals from th inking about sunk costs when making deci- sions, making them more able to focus on the present and make clearer deci- sions. 14

Mindful meditation is easy to prac- tice, "doesn' t requ ire a rigid schedule,' and can easi ly become pa rt of one's work routine, notes Maria Gonza lez, president ofToronto-based Argonauta Strategic All iances Consulting. 15

Her cl ients include Btv!O Financial Group, Ontar io's Hydro One, and the Conference Board of Canada. She is also the author of Mindful Leaderslrip .16 Business meetings are a good example of why m indful- ness is needed. "In many conversa- tions, neither s ide is fully there for the d iscussion. It's become a con- stant that people are trying to mul- ti task and hold ing their BlackBerrys under the table at meetings and never focusing on the issue at hand, • says Gonzalez. 17

Studies on m indful meditat ion have shown pos itive results. One study found that ' Mindfulness medi- tation has been reported to enhance numerous mental abilities, includ ing rap id memory recall." 18 One me ta- ana lys is (a study that examined a la rge number of previous studies), determined that m indful medi tation can help ease psychologica l stresses like anxiety, dep ress ion, and pa in. 19

Another study found that med itation and m indfu lness lower levels of the stress hormone cortisoJ.20

Characteristics of a Spiritual Organization Spiritual organizations are concerned with helping people develop and reach their full potential. Th is is analogous to Ab raham tvlaslow's description o f self-actualization that we d iscus.~ed in relation to motiva tion in Chapter 4. Sim ilarly, organ iza tions concerned with sp irituality are more l ikely to di rectly address problems crea ted by work-l ife confl icts.21

The Vancouver Is land Heal th Author ity recognizes that spir itual care can be helpful to those faced with stressful health care decis ions. 22

Consequently, Nanaimo Reg ional General Hospi tal offers staff, patients, and patienL~' famil ies access to spiritual health services that match their belief perspectives.

London, Ontario-ba~ed 3M Canada also provides a quiet room for med i- tation and reflect ion, which was o ne of the factors cited in explaining why it was chosen as one of Canada's top JOO employers fo r 2014_23 Calgary- based Shell Canada provides a med i- tation and reflection cen tre so that its employees can have a more mindful, calm ing experience at work.24

\"/hat differentiates spiritual organi- zations from their nonspiritual coun- terparts? Although resea rch on th is question is o nly preliminary, several cul tural characteristics tend to be evi- dent in spiritual organizations.25

Benevolence

Spi ritual organ izations value showing kindnes.~ toward others and promoting the happiness of employees and other organizational stakeholders.

Strong Sense of Purpose

Spiritual organizations build their cul- tures around a meaningfu l purpose. While profits may be importan t, they are not the primary value of these orga- n izations. People want to be inspired by a purpose that they bel ieve is impor- tant and worthwhile.

Charl lo tt e Kwon, owner and CEO o f Vancouver-based Maiwa Handpri nts, pays the artisans from developing coun tries who provide tex- t iles for her retail stores substan tially mo re than what others pay them. She wants to protect craftspeople so that they can con tinue to produce their artwork. She also wants to make sure that their trad itional arts will survive. "I don't want to Jose tradit ional dyes made with s pecific recipes that are rarely written down. Without care, that information could be Jost forever.' 26

She also notes that she does not need to pay the artisans minimum prices to survive: "I Jive okay. I don't need anyth ing more.' 27

Trust and Respect

Spi ritual organizations are character- ized by mutua l t rust, hones ty, and openness. Managers are no t afra id to admit m istakes. Steve Reaume, dealer principal of Windso r-based Reaume Chevrolet Buick GMC, a company founded by his grandfather, attributes the success of the business to the trust h is fam ily has built in the community. The company d isplays "A Trad ition of Trust .. . since 1931 • banner in its showroom and on its website. Reaume expla ins the company's app roach: "Genera tion after gene ration we've been earning people's trust. Treating cus tomers right, every time, is all it takes."28 Trust is also a b ig part of how Reaume treats its workforce and fosters employee loyalty.

••• . ............... . • • • ,c --..,,-~ FACTBOX l • L J • • • • • • • • •

• 64% of Canadians consider

themselves spiritual.

• • 71 % of Canadians attend • • religious services at least • • • • • • • • • • • • • •

sometimes .

• 50% of Canadians report that they are religious .

• 60% of Canadians think that public schools should be doctrine-free. 29

Humanistic Work Practices

The practices embraced by spiritual organizations include flexible wo rk schedules, group- and organization- based rewards, narrowing of pay and status d ifferentials, guarantees of indi- vidual employee r igh ts, employee empowermen t, and job security. Hewlett-Packard, for instance, has handled temporary downturns through voluntary attr ition and shortened workweeks (shared by all), and it has handled Jonger-terrn decl ines th rough early retirements and buyouts.

Toleration of Employee Expression

Finally, spiritual o rgan iza tions don' t stifle employee emotions. They allow people to be themselves- to express the ir moods and feel ings without guilt or fear of reprimand. Employees at Calgary-based WestJet Ai rlines, for instance, are encouraged to express thei r sense of humour on the job, to act spon taneously, and to make their work fun.

4 53

OBI

Ol9•riz•llo ul Uoclela fo

r Poaterte:1 Spkllu•lltr

• Religion-b ased o,ganiZ

ation: The OfQ anization 's pr

actices are c onS1Stent wi

th biblical tea chrngs; there

is an empha sis

on prayer as a primary for

m of intrafirm oommunica

tion; employ ees are expe

cted to acce pt cOfe ChriS

lian principle s

as guides to decision mak

ing.

• Evolutiona ry organizatio

n: Spritual op enness is enc

ouraged; the guiding texts

are a miXtua of Christian s

crt,tures

and philosop hical WOtkS (

Kant, Niebuh r, Buber); the

re is an emp hasiS on servin

g the customer, preservi1g the

environment , and respec

ting stakeho lders.

• Recovemg org aniZation: Th

e orgaozatio n models its

elf after the 1 2-step progra

m of Alcoholic s Anonymous

;

spirituality is discussed in

ways that are acceptable t

o the largest number of p

eople. The 12 -step progra

emphaslZes r onfession (o

f failures), acc eptance of G

od's wil and guidance, a

nd reliance o n the help of

others. This

model is intre quenti,,, found

in the busine ss wood.

• Socialy res ponsible orga

nization: Soci al concerns a

nd values are part of ~ business ac

ti111ties; the

organization emphasizes

the express ion of the in<

frviduaf's "wh ole person"

and soul; cu stomers. sup

pliers. and o ther

stakeholders are expecte

d to bond m ore readily to

the firm; spir ituality and so

ul are explicit core busine

ss pmciples .

• VBJues-ba sed organiza

tion: The orga ntzation firmly

reiects aft no lJOnS of religi

oUS doctrine ; it favours no

nreliglOUS an d

nonspiritual secular value

s or virtues ( e.g., awaren

ess, conscio usness, dign

ity, honesty, openness. r

espect, integ rity,

and, above a ll, trust); valu

es are guide s for policy s

etting and de c1s1on makin

g throughou t the firm. The

Golden Rule

1s the prime business pri

nciple.

• Best-prac tice modeJ: Th

e organization combines pa

rts of an of the abo ve modelS; it

emphasizes values-base

secular orien tation; it add

s an openly e xpressed sp

iituaf dimens ion; rt empha

sizes the imp ortance of ·a

higher

power," peri odic moral a

udits, and a broadly inclu

sive approac h to stakeho

lders.":io

The inse1 Org anizar·

Fostering Spi ritua/i d io

n~/ Models for

for spiriruau b ty es

cnbes mode ls

y ased 0 rgan iza lions.

~n facili1a1 e a spiritua

•nduding th

Workplace,J I

I. ose thar s

•fe balance. Lead

uppon wor k-

vaJ eis can d

ues, artitud- d emoo

s1ra1e

· . ~ .an beh ·

I . ams. Many c

hapla ·

agencies, suc h as ~~ are em

ployed by

Achieving

a Spiritt1al

Organization

tngger m•..:os· .

aviours that

u, ic mo1wa · of fulfill·

t:lon and a = n·-

•ng a Clllin h

-..,.,

Second en . g

I rough work

. , co uragmg em 1

•

sider how th · P

oyees to con .

e,r \VOrk pra vjd

Pllrpose can also he!

. es a sense of

workplace. Ofi p ac

h1eve a spirirual

US,\ while s ome co,;,:~ Oiaplains

R. J. Rrynolds TobaQ-o

llons, such as

employ cba pJ . . an

d T~n ~

I a1os direaJ

,.,,,

p ace Presen ce of co

y. • ue work-

who are ofie n ord . IJ>O

raie chaplain s,

. amed Chris .

Many oro,n , __ .

. .,..."41llon s have

ESled in spir ituali

grown inter -

enced d'ff, ty but have

exper;

• 1 iaJlry puirin

· •

1010 praa;~ S g

•ts principle s

-~- evera1 "" '--

·,~ of Pra aices

4 5 4

en this · d

group CQU n•-"'

IS one thro ugh

d ~..,.,,,mg an

d o · ·

evelopmen t 7h. d rg

an1za1iona1

ber of compan ies ':a. a growing num.

counseJlin se . er em

ployees the

g Mees of colJ>O rate chap-

iers, IS obvio us I

t:lan minis-

lheir role is no; rCO~trov

ersiaL althou gh

b O IOCTP••

- · .

Ut 10 help h -...

.,,c spintuali ty

umao reso

11lents serve the em J

urces depan -

have Christ ian beJfe:>:;s wh~ already

for leader.; o f ,L • •

S,m,lar role s

be Ou,er lanbs

encouraged. ce

rtainly musr

F A C E O F F

Organizations that encourage spir- ituality as part of their culture are

bound to have more positive bot-

tom lines, because everyone in the organization will act more ethically.

Criticisms of Spirituality Critics of organizations that embrace spiritual values have focused on three issues. First is the question of scientific foundation. What, really, is workplace spi rituality? Is it just a new manage- ment buzzword? Second, are sp iritual organ izations legitimate? Specifically, do o rgan izations have the right to claim spiritual values? Th ird is the question of economics: Are spiritual- ity and profits compatible?

First, as you might imagine, com- paratively little research exisL~ on work- place spirituality. Spiritual ity has been defi ned so b roadly in some sources tha t practices from job rota tion to corporate retreats at med itation cen- tres have been iden tified as spiritual. Questions need to be answered before the concept ga ins full cred ib il ity.

Second, an emphasis on spiritual- ity can dearly make some employees uneasy. Critics have argued that secular institutions, especially business fi rms, have no bus iness imposing sp iri tual values on employees. This cri ticism is undoubtedly valid when spi ritual- ity is defined as bringing religion and God into the wo rkplace.33 However,

An emphasis on s pirituality at work distracts individuals from focusing

on the demands of their jobs, and

makes some people uncomfort- able. It should not be encouraged .

it seems less stinging when the goal is limi ted to helping employees find mean ing and purpose in their wo rk I ives.

Fina lly, whether sp iritua lity and p rofi ts are compatible objectives is a relevant concern for managers and investo rs in bus iness. The evidence, although lim ited, indicates that they are. In one study, o rgan izations that provided thei r employees with oppor- tunities for spi ritual development out- performed those that d id not.34 Other stud ies repo rted th at s piritua lity in organizations was positively related to creativity, employee satisfaction, team performance, and organizational com- mitment 35

The cynic will say that all of th is car- ing stuff is in fact merely good public relations. Even so, the results at WestJet suggest that a ca ring organ ization is good for th e bottom line. WestJet is strongly committed to providing the lowes t a irfa res, on-t ime service, and a pleasant experience fo r customers. WestJet employees have one of the low- est turnover rates in the airline indus- try, the company consistently has the lowest labour costs per m iles flown of any major a irline, and it has proven itself to be the most consistently profi t- able airline in Canada.36

RESEARCH EXERCISES

1. Look for data on companies that foster spirituality in the workplace in Canada and the United States. Can you draw any inferences about whether incorporating spiri- tuality in the workplace is becom- ing a trend?

2. Identify three Canadian organiza- tions or CEOs that have encour- aged more openness toward spirituality in their organizations. What, if any, commonalities exist in these organizations?

YOUR PERSPECTIVE

1. Have you ever tried meditation? If yes, did it help you achieve more clarity in your thinking? If not, What are your views on this practice?

2. What does spirituality mean to you?

WANT TO KNOW MORE?

Three top-selling books by Canadian

authors, based on international sales • are on spirituality: A New Earth: Awakening to Your Life's Purpose, by

Vancouver's Eckhart Tolle; The Power

of Now, by Eckhart Tolle; and The Shack, by William Paul Young.

455

456

Organizational Structure

PA RT 5

REORGAN IZ ING THE WORK PL ACE

O Identify seven elements of an organization's structure. f) Describe the characteristics of a bureaucracy. f) Describe the characteristics of a matrix organization.

Precision

Nutrition is a

fitness and nutrition

coaching company w ith

a flattened organizat ional structure. How has this organizational structure

contributed to the

company's

success?

C, Describe the characteristics of virtual, team, and circular structures. 0 Describe the effects of downsizing on organizational structures and employees. O Contrast the reasons for mechanistic and organic structural models. f) Analyze the behavioural implications of different organizational designs.

n 2015, Toronto-based Precision Nutrition, a fitness and nutrition coach- ing company, was named one of Can- ada's most innovative fitness companies. 1 The company was started in 2005 by Phil Caravaggio (in the cen-

tre of the photo). His interest was in coaching and developing strategies for the company.

When he grew from 8 to 50 employees, he found almost all of his time was

spent managing employees, rather than getting his work done. He

wanted a new organizational structure to make things

more efficient. "I want to

Counesy of Precision rwtrition

be a leader," he says. "I don't want to be a manager." Caravaggio put in place a management system called holacracy, developed by Brian Robertson. Holacracy promotes a flatter organizational structure, empowering individuals to make more decisions for the work

that they do. As described on the HolacracyOne website, "In Holacracy, people have multiple roles, often on different teams, and those role descriptions are constantly updated by the team actually doing the

work. This allows people a lot more freedom to express their creative talents, and the company can take advantage of those skills in a way it couldn't before. Since roles are not directly tied to the

people filling them, people can hand-off and pick up new roles fairly easily." Organizations are looking for new ways to structure. Not all are going as far as hol-

acracy, though Zappos, with 4000 employees, is one of the largest using the system. Other organizations are flattening themselves to have fewer layers of bureaucracy.

Choosing an organizational structure requires far more than simply deciding who is the boss and how many employees are needed. The organization's structure will

determine what relationships form. the formality of those relationships, and many work outcomes. The structure may also change as organizations grow and shrink, as management

trends dictate, and as research uncovers better ways of maximizing productivity. Structural decisions are arguably the most fundamental ones a leader has to make toward sustain-

ing organizational growth.2 In this chapter, we will explore how structure affects employee behaviour and the organization as a whole.

\ I I

:'o': , ' , '

• What happens when a person performs the same task over and over again? 'l'IIE BIG IDEA • What happens when a person reports to two bosses? • What does technology mean?

Organizalional slruclure

delermines ,vhaL gets done in an

organizaLion, and ,vho does il.

457

458 Part 5 Reorganizing the Workplace

O Identify the seven elements of an organi· zation's structure.

organizational structure How job tasks are formally divided, grouped, and cOOfdinated.

work specialization The degree to which tasks in the organization are subdivided into separate jobs.

What Is Organizational Structure? An organizational structure defines how job tasks are formally divided, grouped, and coordinated. Managers should address seven key elements when they design their orga- nization's structure: work specialization, departmental ization, chain of command, span of control, centralization and decentral ization, formal ization, and boundary spanning.3

Exhibit 13-1 presents each element as the answer to an important structural question,

and the following sections describe them.

Work Specialization Work specialization, or division of labour, describes the degree to which tasks in the organization are subdivided into separate jobs. The essence of work specialization is that, rather than an entire job being completed by one individual, it's broken down into a number of s teps, with each step being completed by a separate individual. Specialization is a means of making the most efficient use of employees' skills and even success- fully improving them through repetition. Less time is spent changing tasks, putting away tools and equipment from a prior s tep, and getting ready for another.

Specialization can be efficient. It's easier and less costly to find and tra in employees to do specific and repetitive tasks. This is especially true of highly sophisticated and complex operations. For example, could Montreal -based

v\lhat happens when a person

perfor1ns the same task over

and over again·?

Bombardier produce even one Canadian regional jet a year if one person had to build the entire plane alone? Not likely! Finally, work specialization increases efficiency and productivity by encouraging the creation of special inventions and machinery.

However, specialization can lead to boredom, fa tigue, stress, low productivity, poor quality, increased absenteeism, and high turnover, so il is not always the best way to organize employees. Giving employees a variety of activities to do, allowing them to do a whole and complete job, and putting them into teams with interchangeable ski lls can resu lt in significantly higher output and increased employee satisfaction.

Most managers today recognize that specialization provides economies in certain types of jobs but problems when it's carried too far. High work specialization helps McDonald's make and sell hamburgers and fries efficiently, and aids medical special- ists working in hospitals. Wherever job roles can be broken down into specific tasks or projects, specialization is possible. Specialization may still confer advantages outside manufacturing, particularly where job sharing and part-time work are prevalent.4

EXHIBIT 13-1 Seven Key Questions That Managers Need to Answer in Designing the Proper Organizational Structure

The Key Quest ion

1. To what degree are tasks subdivided into separate jobs?

2. On what basis will jobs be grouped together?

3. To whom do individuals and groups report?

4. How many individuals can a manager efficiently and effectively direct?

The Answer Is Provided By

Work specialization

Departmentalization

Chain of command

Span of control

5. Where does decision-making authority lie? Centralization and decentralization

6. To what degree will there be rules and regulations Formalization to direct employees and managers?

7. Do individuals from different areas need to Boundary spanning regularly interact?

Chapt er 13 Organizational Structure 459

Work is specialized at the Russian factories that manufacture the wooden nesting dolls called malfyosh- kas. At this factOf)' outside Mosoow, individuals specialize in doing part of the doll production, from the

craftsmen who carve the dolls to the painters who decorate them. Work specialization brings efficiency to doll production, as some 50 employees can make 100 matryoshkas eve<y two days.

Amazon's Mechanical Turk program, TopCoder, and others like it have facilitated a new trend in microspecialization in which extremely small pieces of programming, data processing, or evaluation tasks are delegated lo a global network of individuals by a program manager who then assembles the resulL~.5 Program specialization allows employers to use online platforms to specialize- to assign multiple employees to tasks in a broad functional role like marketing.6 Whereas specialization of yesteryear focused on breaking manufacturing tasks into specific duties within the same plant, today's special ization judiciously breaks complex tasks into specific elements by technology, by expertise, and region. Yet the core principle is the same.

Departmentalization Once jobs are divided through work specialization, they must be grouped so that com- mon tasks can be coordinated. The basis on which jobs are grouped together is called departmentalization. One of the concerns related to departmental groups is that they can become silos within an organization. Often, departments start protecting their own turf and not interacting well with other departments, which can lead to a narrow vision with respect to organizational goals.

Functional Departmentalization One of the most popular ways to group activities is by functions performed. For example, a manufacturing company might separate engineering, accounting, manu- facturing, human resources, and purchasing specialists into common departments. Simila rly, a hospital might have departments devoted to research, patient care, accounting, and so forth. The major advantage to functional groupings is obtain- ing efficiencies from putting people wi th common skills and orientations together into common units.

departmentalization The basis on which jobs are grouped together.

4 60 Part 5 Reorganizing the Workplace

Product Departmentalization Tasks can also be departmentalized by the type of product the organization produces. Procter & Gamble groups each major product- such as Tide, Pampers, Charmin, and Pringles- under an executive who has complete global responsibil ity for it. The major advantage to this type of grouping is increased accountability for product performance, s ince all activities related to a specific product line are under the direction of a single manager.

Geographical Departmentalization Another way to departmental ize is on the basis of geography, or territory. The sales func- tion, for instance, may be divided regionally wi th departments for Bri tish Columbia, the Prairies, Central Canada, and Atlantic Canada. If an organization's customers are scattered over a large geographical area and have similar needs based on their location, then th is form of departmental ization can be valuable. Toyota changed its management s tructure into geographic regions •so that they may develop and deliver ever beuer products; said CEO Aldo Toyoda.7

Process Departmentalization Some companies organize departments by the processing that occurs. For example, an aluminum tubing manufacturer might have the following departments: casting; press; tubing; fin ishing; and inspecting, packing, and shipping. This is an example of process departmentalization, because each department specializes in one specific phase in the production of aluminum tubing. Since each process requires different skills, this method offers a basis for the homogeneous categorizing of activities.

Process departmentalization can be used for processing customers, as well as prod- ucts. For example, in some provinces, you may go through a series of steps handled by several departments before receiving your driver's licence: (I) validation by a motor vehicles division; (2) processing by the licensing department; and (3) payment collec- tion by the treasury department.

The Carillon Generating Station on the Ottawa River (shown here) is one of Montreal-based Hydro- Quebec's hydroelectric power stations. Hydro-Quebec organizes its operations by functions so that the company can be more responsive to growth outside Quebec. It has four divisions: Hydro-Quebec Production, Hydro-Quebec TransEnergie, Hydro-Quebec Distribution, and Hydro-Quebec Equipement et services partages/Societe d 'energie de la Baie James.

Chapt er 13 Organizational Structure 461

Customer Departmentalization Yet another way to depanmentalize is on the basis of the panicular type of customer the organization seeks lo reach. Microsoft, for example, is organized around four customer markets: consumers, large corporations, software developers, and small businesses. Customers in each department have a common set of problems and needs best met by having specialists for each.

Large organizations may use all the forms of departmentalization we have described. A major Japanese electronics firm organizes each of its divisions along functional Jines, ils manufacturing units around processes, sales around seven geographical regions, and each sales region inlo four customer groupings. In a strong recent trend among organi- zations of all sizes, rigid functional departmental ization is increasingly complemented by teams that cross traditional departmental lines. A~ we described in Chapter 6, as tasks have become more complex, and more diverse skills are needed to accomplish those tasks, management has turned to cross-functional teams.

Chain of Command While the chain of command was once a basic cornerstone in the design of organiza- tions, it has far less imponance today.8 Bul contemporary managers should still consider its implications, particularly for industries that dea l with potential life-or-death situa- tions when people need to quickly rely on decision makers. The chain of command is an unbroken line of authority that extends from upper organizational levels lo the lowest level and clarifies who reports Lo whom.

We cannot discuss the chain of command without also discuss ing authority and unity of command. Authority refers lo the rights inherent in a managerial position lo give orders and expect them to be obeyed. To faci litate coordination, each managerial posi tion is given a place in the chain of command, and each manager is given a degree of authority in order Lo meet his or her responsibili ties. The principle of unity of com- mand helps preserve the concept of an unbroken line of authority. It says a person should have one and only one superior Lo whom he or she is directly responsible. If the unity of command is broken, an employee might have to cope with conflicting demands or priorities from several superiors, as is often the case in organization charts' doued-line reporting relationships depicting an employee's accountability lo multiple managers.

Because managers have limited time and knowledge, they may choose lo delegate some of their responsibilities lo other employees. Delegation is the assignment of authority Lo another person lo carry oul specific duties, allowing the employee lo make some of the decisions. Delegation is an important pan of a manager's job, as it can ensure that the right people are pan of the decision-making process. Through delega- tion, employees are being empowered lo make decisions that previously were reserved for management. From Concepts w Skills on pages 488- 489 presents strategies Lo be a better delegator.

Times change, and so do the basic tenets of organiza tional design. A low-level employee today can access information in seconds that was available only lo top manag- ers a generation ago. Many employees are now empowered to make decisions previously reserved for management. Add the popularity of self-managed and cross-functional teams as well as the structural designs that include mulliple bosses, and you can see why authority and unity of command may appear lo hold Jess relevance. Poi111/Co1111terpoi111 on page 484 considers whether management as we know it is an outdated concept.

Many organizations still find they can be most productive by enforcing the chain of command. Indeed, one survey of more than 1000 managers found that 59 percent agreed with the statement, "There is an imaginary line in my company's organizational chart Strategy is created by people above this line, while strategy is executed by people below the line."9 However, this same survey found that lower-level employees' buy-in

chain of command The unbroken line of authority !hat extends from upper organizational levels to the lowest level and clarifies who reports to whom.

authority The rights inherent in a managerial po5ition to give orders and to expect the orders to be obeyed.

unity of command The idea !hat a subordinate should have only ooe superior to whom he or she is directly responsible.

delegation Assignment of authority to another person to carry out specttic duties, allowing the employee to make some of the decisions.

462 Part 5 Reorganizing the Workplace

span of control The number of employees who report to a manager.

(agreement and active suppon) to the organization's slfategy was inhibi ted because they did not participate in the selling of the overall, big picture stra tegy but relied on those al the top of the hierarchy to do so.

Sometimes lower-level employees don' t fo llow the chain of command and engage in creative deviance that results in very successful ideas, as Case Incident-Creative Devi- ance: Bucking the Hierarchy? on page 486 shows.

Span of Control Span of control refers lo the number of employees who report to a manager. This number will vary by organization, and by unil within an organization, and is deter- mined by the number of employees a manager can efficiently and effectively direct. In an assembly-line factory, a manager may be able lo direct numerous employees, because the work is well defined and controlled by machinery. A sales manager, by contrast, might have to give one-on-one supervision lo individual sales reps, and, therefore, fewer would reporl to the sales manager. All things being equal, the wider or larger the span, the fewer levels, the more employees at each level, and the more efficient the organiza- tion. An example can illustrate the validity of this statement.

Assume that we have two organizations, both of which have approximately 4100 operative-level employees. As Exhibit 13-2 illustrates, if one has a uniform span of 4 and the other a span of 8, the wider span would have 2 fewer levels and approximately 800 fewer managers. If the average manager earned $56 000 a yea r, the wider span would save abou t $45 million a year in management salaries. Obviously, wider spans are more efficient in terms of cost. However, at some point when supervisors no longer have time to provide subordinates with the necessary leadership and support, effectiveness declines and employee performance suffers.

Narrow or small spans have their advocates. By keeping the span of conlfol to five or six employees, a manager can maintain close conlrol. 10 Bul narrow spans have three major drawbacks. First, as already described, they are expensive because they add levels of management. Second, they make venical communication in the organization more complex. The added levels of hierarchy slow down decision making and can isolate upper management. Third, narrow spans of control encourage overly tight supervision and discourage employee autonomy.

EXHIBIT 13-2 Contrasting Spans of Control

(Highest)

t 1 " > " ...,

"' 3 c .2 ~

"' 4 ...

·2 5 "' "' ~ 0 6 7

(Lowest)

Members at Each Level

Assuming span of 4

256

1024

4096

Operat ives = 4096 Managers (Levels 1-6) = 1365

Assuming span of 8

512

4096

Operatives = 4096 Managers (Levels 1-4) = 585

Source: Based on J. H. Gittell, "SuperviSOIY Span, Relational Coordination, and Flight Departure Performance: A Reassessment of Postbureaucracy TheOIY: Organization Science, July-August 2001, 468-483.

Chapt er 13 Organizational Structure 463

The lrend in recenl years has been loward wider spans of control. 11 Wider spans of conlrol are consislenl with recenl efforts by companies lo reduce costs, cut overhead, speed up decision making, increase flexibility, gel closer lo cuslomers, and empower employees. However, lo ensure that performance does not suffer because of these wider spans, organizations have been investing heavily in employee lraining. Managers rec- ognize tha t they can handle a wider span when employees know their jobs inside and out or can turn lo their co-workers when they have queslions.

Centralization and Decentralization Centralization refers lo the degree to which decision making is concenlrated at a single poinl in the organizalion. In centralized organizations, lop managers make all the deci- sions, and lower-level managers merely carry out their directives. In organizalions al the other extreme, decentra lized decision making is pushed down lo the managers closest to the action or to work groups. The concept of centralization includes only formal aulhority- that is, the rights inherent lo a posilion.

An organizalion characterized by centralization is inherently different slructurally from one that is decenlral ized. In an organization characterized by decentralization, employees can act more quickly to solve problems, more people provide input into decisions, and employees are less likely to feel alienaled from those who make deci- sions that affect their work lives. Decentralized departments make it easier lo address customer concerns as well. The effects of central ization and decenlralization can be predicted: Centralized organizations are beuer for avoiding commission errors (bad choices), while decentralized organizalions are beuer for avoiding omission errors (lost opportunilies ). 12

Management efforts to make organizations more flexible and responsive have pro- duced a recent trend toward decentralized decision making by lower-level managers, who are closer to lhe action and typically have more deta iled knowledge about prob- lems lhan top managers. Big retailers such as Hudson's Bay have given store managers

With more than 7000 neighbourhood and airport locations throughout North America and Europe, Enter- prise Rent-A-Car empowers employees at the local level to make decisions that affect their work. Decen- tralization gives Enterprise a competitive advantage by enabling employees to provide personalized service that resutts in high customer satisfaction.

centralization The degree lo which decision making is concentrated at a single point in lhe organization.

decentralization The degree to which decision making is <istributed to lower-level employees.

4 6 4 Part 5 Reorganizing the Workplace

formalization The degree to which jobs within the organization are standardized.

considerably more discretion in choosing what merchandise to stock in individual stores. Doing so allows the stores to compete more effectively against local merchants. When Procter & Gamble empowered small groups of employees to make decisions about new-product development independent of the usual hierarchy, it was able to rap idly increase the proportion of new products ready for market. 13 Concerning creativ- ity, research investigating a large number of Finnish organizations demonstrated that companies with decentral ized research and development offices in multiple locations were better at producing innovation than companies that centralized all research and development in a single office. 14

Decentralization is often necessary for companies with offshore sites because local- ized decision making is needed to respond to each region's profit opportunities, client base, and specific Jaws, while centralized oversight is needed to hold regional manag- ers accountable. Fai lure to successfully balance these priorities can harm not only the organization, but also its relationships with foreign governments.15

Formalization Formalization refers to the degree to which jobs within the organization are standard- ized. If a job is highly formalized, the employee has a minimal amount of discretion over what to do and when and how to do it, resulting in consistent and uniform out- put. There are expl icit job descriptions, lots of organizational rules, and clearly defined procedures covering work processes. Formalization not only eliminates the possibility of employees engaging in alternative behaviours; it removes the need for them to con- sider alternatives. Conversely, where forma lization is low, job behaviours are relatively nonprogrammed, and employees have a great dea l of freedom to exercise discretion in their work.

McDonald's is an example of a company where employee routines are highly for- malized. Employees are instructed in such things as how to greet the customer (smile, be sincere, make eye contact), ask for and receive payment (state amount of order clearly and loudly, announce the amount of money the customer gives to the employee, count change out loud and efficiently), and thank the customer (give a sincere thank you, make eye contact, ask customer to come again). McDonald's includes this infor- mation in tra ining and employee handbooks, and managers are given a checklist of these behaviours so that they can observe their employees to ensure that the proper procedures are followed. 16

The degree of formalization can vary widely among organiza tions and wi thin organizations. In general, research from 94 high-technology Chinese firms indicated that formalization is a detriment to team flexib ility in decentralized organization structures, suggesting that formalization does not work as well where duties are inherently interactive, or where there is a need to be flexib le and innova tive. 17 For example, publishing representatives who call on college and univers ity professors to inform them of their company's new publications have a grea t dea l of freedom in their jobs. They have only a general sales pitch, \vhich they ta ilor as needed, and rules and procedures governing their behaviour may be little more than suggestions on what to emphasize about forthcoming titles and the requirement to submit a weekly sales report. Al the other extreme, clerical and editoria l employees in the same publishing houses may need to be at their desks by 8 a.m. and follow a set of precise procedures dictated by management.

Boundary Spanning We have described ways that organizations create well-defined task structures and chains of authority. These systems facil itate control and coordination for specific tasks, but if there is too much division with in an organization, attempts to coordinate across groups

Chapter 13 Organizational Structure 465

i ~ ~ "' ~

- ---' { BMW encourages all employees, including this production worker at its plant in Jakarta, Indonesia, to O

build relationships throughout the global company. Boundary spanning at BMW links R & D, design, production, and marketing individuals to speed problem solving and innovation and to adapt to market fluctuations.

can be disastrous. One way to overcome compartmentalization and retain the positive elements of structure is to encourage or create boundary-spanning roles.

Within a s ingle organization, boundary spanning occurs when individuals form relationships with people outside their formally assigned groups. An HR executive who frequently engages with the IT group is engaged in boundary spanning, as is a mem- ber of an R & D team who implements ideas from a production team. These activities help prevent formal s tructures from becoming too rigid and, not surpris ingly, enhance organization and team creativity. IS

Boundary-spanning activities occur not only within but also between organizations. Gathering information from external knowledge sources is especially advantageous in highly innovative industries where keeping up with the competition is challenging. Positive results are especially strong in organizations tha t encourage extensive internal communication; in other words, external boundary spanning is most effective when it is followed up with internal boundary spanning. 19

Organizations can use formal mechanisms lo facil itate boundary-spanning activities through their structures. One method is to assign formal lia ison roles or develop com- mittees of individuals from different areas of the organization. Development activities can also facilitate boundary spanning. Employees with experience in multiple functions, such as accounting and marketing, are more likely to engage in boundary spanning.20

Many organizations try to set the stage for these sorts of positive relationships by creating job rotation programs so new hires get a better sense of different areas of the organization. A final method to encourage boundary spanning is to bring atten tion to overall organizational goals and shared identity concepts.

Common Organizational Designs We now turn lo describing some of the more common organizational designs: the simple structure, the bureaucracy, and the matrix scn1cture.

boundary spanning When indi- viduals form relationships outside their formally assigned groups.

4 66 Part 5 Reorganizing the Workplace

f) Describe the character- istics of a bureaucracy.

simple structure An 0<ganizational design characterized by a low degree of departmentalization. wide spans of control, authority centralized in a single person, and little f0<malization.

The Simple Structure What do a small retail store, a start-up electronics firm run by a hard-driving entrepre- neur, and an airline "war room" in the midst of a company-wide pi loL~' strike have in common? They probably all use the shnple structure.

The simple structure is said lo be characterized most by what it is not rather than by what il is. The simple structure has a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization. ll is a flat organization; it usually has only two or three vertical levels, a loose body of employees, and one individual with decision-making authority. Most companies start as a s imple structure, and many innovative technology-based firms with short lifespans, like cellphone app development firms, remain compact by design.21 The simple structure is most widely adopted in small businesses in which the manager and the owner are one and the same, such as the local corner grocery store.

The strength of the simple structure lies in its simplicity. H's fast, flexible, and inex- pensive to maintain, and accountability is clear. One major weakness is that it's difficu lt to maintain in anything other than small organizations. fl becomes increasingly inad- equate as an organization grows because its low formalization and high centralization tend to create information overload al the lop. Decision making typically becomes slower as the single executive continues trying to do it al l. This proves to be the undoing of many small businesses. If the structure is not changed and made more elaborate, the firm often loses momentum and can eventually fail. The simple structure's other weak- ness is that it's risky- everything depends on one person. An illness al the lop can liter- ally halt the organization's information and decision-making capabilities.

The Bureaucracy Standardization ' Thal is the key concept underlying all bureaucracies. Consider the bank where you keep your chequing account, the department store where you buy your clothes, or the government offices that collect your taxes, enforce health regula- tions, or provide local fire protection. They all rely on standard ized work processes for coordination and control.

Hospitals benefit from standardized work processes and procedures common to buneaucratic structure

because they help employees perform their jobs efficiently. The nursing staff in the maternity ward of a New Zealand hospital adhere to formal rules and regulations in providing care to moms and newborns.

Chapter 13 Organizational Structure 4 6 7

A bureaucracy is characterized by highly routine operating tasks achieved through specialization, strictly formalized rules and regulations, tasks that are grouped into units, centralized authority, narrow spans of control, and decision making that follows the chain of command. Bureaucracy incorporates all the s trongest degrees of depart- mental ization described earlier.

Bureaucracy is a dirty word in many people's minds. However, it does have advan- tages, primarily the ability to perform standardized activities in a highly efficient man- ner. Putting like specialties together in units results in economies of scale, minimum duplication of people and equipment, and a common language employees all share.

Strengths of Bureaucracy German sociologist Max Weber, writing in the early 1900s, described bureaucracy as an alternative to the traditional administrative form. In the traditional model, leaders could be quite arb itrary, with authority based on personal relations. There were no general rules, and no separation between the leader's "priva te• and "public" business. Bureau- cracy sometimes solved the problem of leaders who took advantage of their situation.

The primary strength of the bureaucracy lies in its ab ility to perform standardized activities in a highly efficient manner. Bureaucracies can get by nicely with less tal- ented- and, hence, less costly- middle- and lower-level managers. Rules and regula- tions substitute for managerial discretion. Standardized operations, coupled with high formalization, allow decision making to be centralized. There is little need for inno- vative and experienced decision makers below the level of senior executives. In short, bureaucracy is an effective structure for ensuring consistent application of policies and practices and for ensuring accountability.

Weaknesses of Bureaucracy Bureaucracy is not without its problems. Listen in on a dialogue among four execu- tives in one company: ·vou know, nothing happens in th is place until we produce something," said the production executive. ·wrong,• commented the research and development manager. •Nothing happens until we design something!" 'What are you talking about1• asked the marketing executive. "Nothing happens unti l we sell some- thing'• The exasperated accounting manager responded, "It doesn't mauer what you produce, design, or sell. No one knows what happens until we tally up the results'" This conversation highl ights that bureaucratic specialization can create confl icts in which unit perspectives override the overall goals of the organization.

The other major weakness of a bureaucracy is something we have all experienced: obsessive concern with following the ru les. When cases arise that don't precisely fit the rules, there is no room for modification. The bureaucracy is efficient only as Jong as employees confront problems that they have previously encountered and for which programmed decision rules have already been established. Case Incident- "! Detest Bureaucracy" on page 487 lets you consider alternatives to bureaucracy and how you might feel about these alternatives.

There are two aspects of bureaucracies we should explore: functional and divisional structures.

The Functiona I Structure The functional structure groups employees by their similar specialties, roles, or tasks.22 An organization organized into production, marketing, human resources, and accounting departments is an example. Many large organizations utilize this structure, although this is evolving to allow for quick changes in response to business opportuni- ties. Still, there are advantages, including that the functional structure allows specialists to become experts more easily than if they worked in diversified units. Employees can also be motivated by a clear career path to the top of the organization chart specific to their specialties.

bureaucracy An organizational structure with highly routine operating tasks achieved through specializa- tion, formalized rules and regulations, tasks that are grouped into units, centralized authority, narrow spans of oootrol, and decision making that fol- lows the chain of command.

functional structure An organiza- tional structure that groups employ- ees by their similar specialties, roles. or tasks.

468 Part 5 Reorganizing the Workplace

9 Describe the charac- teristics of a matrix organization.

divisional structure An 0<ga- nizational structure 1ha! groups employees into units by product, service, cust0<ner, Of geographical market area.

matrix structure An organizatiooal <resign 1ha! 00<nbines functional and product departmen!aliza!ion; ij has a dual chain of command.

The functional structure works well if the organization is focused on one product or service. Unfortunately it creates rigid, formal communications because the hierarchy

d ictates the communication protocol. Coordination among many units is a problem, and infighting in uni ts and between units can lead to reduced motivation.

The Divisional Structure The divisional structure groups employees into un its by product, service, customer, or geographical market area.23 It is highly departmentalized. Sometimes this structure is known by the type o f division structure it uses: product/service organizational stn1cture (l ike units for cal food, dog food, and b ird food that report lo an animal food pro- ducer), cus101ner organizational stn1cture (l ike units for outpatient care, inpatient care, and pharmacy that report to hosp ita l administration), or geographic organizational stn1cture ( like units for Europe, Asia, and South America tha t report to corporate headquarters). 24

The d ivisional s tructure has the opposite benefi ts and disadvantages of the func- tional structu re. It facilitates coordination in units to achieve on-time completion, budget targets, and development and introduction of new products to market, while

addressing the specific concerns of each unit. It provides clear responsibility for all activities related to a product, but w ith duplication of functions and costs. Sometimes this is helpful, say when the organization has a unit in Spain and another in China, very different markets, and a marketing strategy is needed for a new product. Marketing experts in both p laces can incorporate the appropriate cultural perspectives into their region's marketing campaign. However, the organization's marketing function employ-

ees in two places may represent an increased cost, in doing basically the same task in two different countries.

The Matrix Structure The matrix s tructure combines the functional and product structures, and we find it being used in advertising agencies, aerospace firms, research and development laborato- ries, construction companies, hosp itals, government agencies, universities, management consulting firms, and entertainment companies.25 It combines two forms of departmen-

talization: functional and product. Companies that use matrix-l ike structures include Boeing, BMW, IBM, and Procter & Gamble.

The most obvious structural characteristic of the matrix is that it breaks the un ity- of-command concept. Employees in the matrix have two bosses-their functional department managers and their product managers.

Exhibit 13-3 shows the matrix structure used in a fac- ulty of business administration. The academic departments of accounting, administrative studies, finance, and so forth

are functional un its. Specific programs (that is, products) are overla id on the functions. Thus, members in a matrix s tructure have a dual chain of command: to their func-

tional department and lo their product groups. A professor of accounting who is teaching an undergraduate course reports to the d irector of undergraduate programs, as well

as to the chair of the accounting department.

Advantages of a Matrix Structure

v\lhat happens when a person repo11t5 to rn·o

bosses·?

The strength of the matrix is its ability to foster coordination when the organization has a number of complex and in terdependent activities. Information permeates the organization and more quickly reaches those people who need it. Furthermore, the matrix reduces "bureaupathologies"-its dual lines of authority limi t people's tendency to pro tect their territories at the expense of the organization's goals.26 A matrix also ach ieves economies of scale and facilitates the allocation of specialists by both provid-

ing the best resources and ensuring they are efficiently used.

Chapter 13 Organizat ional Structure 4 6 9

EXHIBIT 13-3 Matrix Structure for a Faculty of Business Administration

Programs

Academic departments

Accounting

Administrative

studies

Finance

Information and decision sciences

Marketing

Organizational

behaviour

Quantitative methods

Undergraduate Master's PhD

Disadvantages of a Matrix Structure

Executive Research Community service

development

The major disadvantages of the matrix lie in the confusion il creates, its tendency to foster power struggles, and the stress it places on individuals.27 For individuals who desire security and absence of ambiguity, this work cl imate can be stressful. Reporting to more than one manager introduces role confl ict, and unclear expectations introduce role ambiguity. Without the unity-of-command concept, ambiguity about who reports to whom is significa ntly increased and often leads to confl ict and power struggles between fu nctional and product managers.

Alternate Design Options When Phil caravaggio of Toronto-based Precision Nutrition talks about the organizational

structure he has put in place, it sounds much like a team-based structure, which we describe below.28 "It's a system for giving everyone real clear autonomy without everything devolving into

chaos," he explains. There are few job titles, and no hierarchy. People are organized into circles

and he refers to himself as the "lead link of the general company circle." Holacracy generally groups people into au tonomous circles based on projects. Each

circle has a leader, but the leaders can change when necessary. Each circle also chooses

a representative to sit in on meetings with other circles so that communication flows. This type of system requires a clear governance process so that everyone knows and under-

stands the rules.

Caravaggio was able to test lhe system as Precision Nutrition undertook a big launch of a new certification program. He had to be out of town multiple limes during the preparation,

but said it was the smoothest launch they had ever had. He thought this signified that the

structure could work tor the company: "To me, it was the demarcation point between being a collection of heroic individuals, and having a system that is trusted by talented people to

do what needs to be done."

In what situations could new forms of organization be effective?

Senior managers in a number of organizations have been developing new structural options wi th fewer layers of hierarchy and more emphasis on opening the boundaries of the organization.29 In this section, we describe three such designs: the virtual struc- ture, the team stn1cture, and the circular stn1cture. We also discuss how efforts to reduce bureaucracy and increase stra tegic focus have made downsizing routine.

470 Part 5 Reorganizing the Workplace

O Describe the character- istics of virtual, team, and circular structures.

virtual structure A small core organizalioo that outsources its major business functions.

The Virtual Structure Why own when you can rent? Thal question captures the essence of the virtual struc- ture (a lso sometimes called the network or modular structure), typically a small, core organization that outsources its major business functions. 30 The virtual structure is highly centralized, with little or no departmentalization.

The prototype of the virtual structure is today's film-making organization. In Hol- lywood's golden era, movies were made by huge, vertically integrated corporations. Studios such as MGM, Warner Brothers, and 20th Century Fox owned large movie lots and employed thousands of fu ll-time specialists- set designers, camera people, film editors, directors, and even actors. Today, most movies are made by a collection of individuals and small companies who come together and make fi lms project by project. This structural form allows each project to be s taffed with the talent best sui ted to its demands, rather than just with the people employed by the studio. ll minimizes bureaucratic overhead because there is no lasting organization to main tain. And it less- ens long-term risks and their costs because there is no long term- a team is assembled for a finite period and then disbanded.

About one in nine Canadian companies engages in some sort of all iance. These alli- ances take many forms, ranging from precompetitive consortia to coproduction, cross- equity arrangements, and equity joint ventures with separate legal entities.3 1 Amazon. ca partners with Canada Post in such an arrangement. Orders placed on Amazon.ca's website are fulfilled and shipped by Assured Logistics, which is part of Canada Post. Assured Logistics operates a Toronto-area warehouse that stores books, music, and mov- ies so that they can be shipped when ordered, thus eliminating the need for Amazon to set up its own warehouse faci lity in Canada. Newman's Own, the food products com- pany founded by Paul Newman, sells hundreds of mill ions of dollars in food every year yet employs only 28 people. This is possible because il outsources almost everything: manufacturing, procurement, shipping, and quality control.

Exhibit 13-4 shows a virtual organization in which management outsources all the primary functions of the business. The core of the organization is a small group of executives whose job is lo oversee directly any activi ties done in house and to coordinate relationships with organizations that manufacture, distribute, and perform other crucial functions. The dotted lines represent the relationships typically maintained under con- tracts. In essence, managers in virtual structures spend most of their time coordinating and controll ing external relations.

The major advantage of the vi rtual structure is its flexib ility, which allows indi- viduals with an innovative idea and little money lo successfully compete against more estab lished organizations. The structure also saves a great deal of money by eliminating permanent offices and hierarchical roles. 32

EXHIBIT 13-4 A Virtual Organization

Independent research and development

consulting f i rm

' ' ' • , , ,

Executive , group J

, ~ ' -----~.' ' Factories

in South Korea

Advertising agency

Commissioned sales

representatives

Chapter 13 Organizational Structure 471

The drawbacks of vinual structures have become increasingly dear as their popularity has grown.33 They are in a state of perpetual flux and reorganization, which means roles, goals, and responsibil ities are unclear, setting the stage for political behaviour. Cultural al ignment and shared goals can be lost because of the low degree of interaction among members. Team members who are geographically dispersed and communicate infre- quently find it difficult lo share information and knowledge, which can limi t innovation and slow response lime. Sometimes- as with Vancouver-based Lululemon's shipments of unintentionally see-through yoga pants, where the deficiencies were not noticed until many had been sold- the consequences of having geographically remote managers can be embarrassing and even financially harmful to the company. 34 Ironically, some virtual organizations are less adaptable and innovative than those with well-established communication and collaboration networks. A leadership presence that reinforces the organization's purpose and facilitates communication is thus especially valuable.

OB in the Workplace explores some of the issues involved in creating a global virtua l workplace.

The World Is My Corporate Headquarters

What does it mean to be a virtua l company? Neither Aulomallic Inc., with 123 employees working in 26 countries nor Ka lypso LP, with 150 employees around the globe, has a corporate headquarters or, truly, an office of any sort.35 The implications of this new understanding of what il means to be a global virtual business are logistical, structural, and human.

On the logistics end of gelling work done, office-less companies utilize every technology available, from Skype to biogs. Sensitive information is limited to phone discussions, though the difficu lty of scheduling virtual meetings can be tricky across a number of time zones. When needed and al least annually, employees fly lo designated intermediate spots for face-lo-face time. Employees live where they want or where a strategic company presence for clients is desired.

The office-less company is not a good fit for every industry. The complete decentral- ization of the organization's physical structure dictates a nonhierarchical organization chart High employee autonomy and empowerment lo make decisions means supervi- s ion must be very light in order for the company to compete and take advantage of business opportunities specific to one employee's region, which the rest of the company cannot see.

With hiring possibilities worldwide, the company must also be dear about who can recru it new candidates and how lo fit them into the organizational structure. Though the office-less company sounds like a good opportunity lo maximize the worldwide talent pool, it presents challenges on a human level. According lo Bill Poston, founding- partner of Kalypso, the office-less company does not work for people •who are uncom- fortable with ambiguity." With the technology available, employees are not isolated, but the necessary lack of hierarchy means some employees may feel underappreciated.

The office-less company is still a rarity in the world, but its popularity is growing. It's very possible tha t truly global corporations of the future will need lo consider a decentral- ization strategy that includes either many headquarters- or no headquarters al all. _ . . . . _

The Team Structure The team structure seeks to eliminate the chain of command and replace depart- ments with empowered teams.36 This structure removes vertical and horizontal

team structure An organizational structure !hat replaces departments with empowered teams, and that eliminates horizontal boundaries and external barriers between customers and suppliers.

472 Part 5 Reorganizing the Workplace

boundaries in addition to breaking down external barriers between the company and its customers and suppliers.

By removing vertical boundaries, management flattens the hierarchy and minimizes status and rank. Cross-hierarchical teams (which include top executives, middle manag- ers, supervisors, and operative employees), participative decision-making practices, and 360-degree performance appra isals ( in which peers and others evaluate performance) can be used. For example, at the Danish firm Oticon A/S, the world's largest hearing- aid manufacturer, all traces of hierarchy have disappeared. Everyone works at uniform mobile workstations, and project teams, not functions or departments, coordinate work.

As previously d iscussed, functio nal departments create horizontal boundaries between fu nctions, product lines, and units. The way to reduce them is to rep lace fu nc- tional departments with cross-functional teams and organize activi ties around processes. Xerox, for instance, develops new products through multidiscipl inary teams that work on a s ingle process instead of on narrow functional tasks.

When fully operational, the team structure may break down geographic barriers. Today, most large US companies see themselves as team-oriented global corporations; many, like Coca-Cola and McDonald's, do as much business overseas as in the United States, and some struggle to incorporate geographic regions into their structure. In other

I\ 0 JI ~ CAREER OBJECTIVES

I \i What Structu re Should I Choose? I'm running a small but growing business and need help figuring out how to keep posit ions flexible as we expand. W hat advice can you give me about designing job struct ures that w ill help combine my success today w ith growth for tomorrow?

-Anika

Dear Anika: A surprising number of small busi- nesses fail right at the point where they begin to grow. There are many reasons, including financing deficits and competitors that copy their good ideas. However, a common problem is that the structure the company began with is simply not right for a larger firm.

There are ways to meet the chal- lenge. Start by looking at individual jobs and their responsibilities. Make a list for each job. When job roles and responsibilities are not defined, you do pick up a great deal of flexibility, assigning employees to tasks exactly when needed. Unfortunately, this flex- ibility also means it's hard to determine

which skills are available, or to identify gaps between planned strategy and available human resources.

Second, you may want to now define roles based on broad sets of competencies that span multiple lev- els of organizational functioning. In this strategic competency model, job roles and incentives are defined based on a clear structure. Here are the steps:

• Look at the top level and think about the future. In the competency model, you should use the mission statement and overall organiza- tional strategies to evaluate your organization's future needs.

• Once you've identified the organi-

zation's future needs, figure out a smart way to assign responsibilities to individuals. You' II obviously need some specialization, but at the same time, consider general skills that will be useful for both growth and long-term sustainability.

• As your business grows, identify applicants with the potential to meet future needs, and develop employee incentives to encourage broad skills profiles. You ' II want to

structure your plan so employees increase in competency as they move up the organization chart.

The most important thing to remember is that you aren't creating a job structure just for today- make sure it's ready to grow and change with your business.

Grow well!

Sources: Based on G. W. Stevens, "A Critical Review of the Science and Practice of Compe- tency Modeling," Human Resource Develop- ment Review 12 (March 2013), pp. 86-107; P. Capelli and J. R. Keller, 'Talent Management: Conceptual Approaches and Practical Chal-

lenges," Annual Review of Organizational Psy- chology and Organizational Behavior 1 (March 2014), pp. 305-331; and c. Fernandez-Araoz, "21st Century Talent Spot1ing," Harvard Business Review, June 2014, https://hbr. org/2014/06/21 st-century-talent-spotting.

be liable to you or anyone else for any decision made or action taken in reliance on the opin- ions provided here.

Chapter 13 Organizational Structure 473

cases, the team approach is need-based. Such is the case with some Chinese companies, which made 93 acquisi tions in the oil and gas indusuy in five years- incorporating each acquisition as a new team unit- to meet forecasted demand their resources in China could not meet.37 The team structure provides a solution because it considers geography as more of a tactical, logistical issue than a structural one. In short, the goal may be to break down cul rura l barriers and open opportunities.

Some organizations create teams incorporating their employees and their custom- ers or suppl iers. For example, to ensure important product parts are rel iably made to exacting specifications by its suppliers, Honeywell International partners some of its engineers with managers at those suppliers.

The Circular Structure Picture the concentric rings of an archery target. In the centre are the executives, and radiating outward in rings grouped by function are the managers, then the specialists, then the workers. This is the circular structure.38 Does it seem like organizational anarchy? Actually, there is still a hierarchy; but top management is at the very heart of the organization, with its vision spreading outward.

The circular structure has intuitive appeal for creative entrepreneurs, and some small innovative firms have claimed it. However, as in many of the current hybrid approaches, employees are apt to be unclear about whom they report to and who is running the show. We are still likely to see the popularity of the circular structure spread. The con- cept may have intuitive appeal for spreading a vision of corporate social responsibility (CSR), for instance.

The Leaner Organization: Downsizing The goal of some organizational s tructures we have described is to improve agi lity by creating a lean, focused, and flexible organization. Downsizing is a systematic effort to make an organization leaner by closing locations, reducing staff, or sell ing off business units that do no t add value. Downsizing does not necessarily mean physically shrinking the size of your office, although that has been happening too.

The radical shrinking ofToronto-based Sears Canada was a case of downsizing due to loss of market share and changes in consumer demand. Online shopping became a much bigger part of the retail landscape. The company sold off its biggest urban store properties in 2013, and has had mediocre results in recent years. In 2017 the company announced tha t it was closing 59 s tores and eliminating 2900 jobs as part of a courl- supervised restructuring. Sears did not develop a strong on line presence, and that greatly affected its ab ility to meet the needs of consumers.39

Other firms downsize to direct a ll their efforts toward their core competencies. American Express claims to have been doing th is in a series of layoffs over more than a decade: 7700 jobs in 2001; 6500 jobs in 2002; 7000 jobs (10 percent of its work- force) in 2008; and 4000 jobs in 2009. The 2013 cut of 5400 jobs (8.5 percent of the remaining workforce) represented •its biggest retrenchment in a decade."40 An addi- tional layoff of 4000 jobs was slated for 2015. Each layoff had been accompanied by a restructuring to reflect changing customer preferences, away from personal customer service and toward online customer service. According to CEO Ken Chenault, "Our business and industry continue to become transformed by technology. As a result of these changes, we have the need and the opportunity to evolve our organization and cost s tructure."41

Some companies focus on lean management techniques to reduce bureaucracy and speed decision making. For example, Starbucks adopted lean initia tives in 2009, which encompassed all levels of management and also focused on faster barista techniques and manufacturing processes. Customers have generally applauded the shortened wail

O Describe the effects of downsizing on organi- zational structures and employees.

circular structure An organiza- tional structure in which executives are at the centre, spreading their visioo outward in rings grouped by function (managers, then specialists. then workers).

4 7 4 Part 5 Reorganizing the Workplace

O Contrast the reasons for mechanistic and organic structural models.

mechanistic model A structure characterized by high specialization, rigid departmentalization, a clear chain of command, narrow spans of control, a limrted inf0<mation network, and centralization.

organic model A structure that is flat. uses cross-functional and cross-hierarchical teams, possesses a comprehensive information networ1<, has wide spans of control, and has low formalization.

limes and improved product consislency. Starbucks conlinues lo reap returns from ilS lean inilialives, posting nolable revenue gains each quarler.42

Despile the advanlages of being a lean organization, the impact of downsizing on organizational performance is nol wilhoul controversy. Reducing the size of the work- force has an immediately posilive outcome in the form of lower wage costs. Companies downsizing lo improve stralegic focus often see positive effeclS on s tock prices after the announcement. On lhe other hand, among companies that only cul employees bul don'l reslructure, profilS and slock prices usua lly decline. Pan of the problem is the effecl of downsizing on employee alliludes. Employees who remain oflen feel worried aboul future layoffs and may be Jess committed lo the organizalion. Stress reactions can lead lo increased sickness absences, lower concentralion on the job, and lower cre- ativity. Downsizing can also lead to more voluntary turnover, so vital human capital is Jost. The result is a company that is more anemic than Jean. The Ethical Dilemma on page 486 discusses the impact of job security on employee wellness and performance.

Companies can reduce negalive impacts by preparing in advance, thus allevialing some employee stress and strenglhening supporl for Lhe new strategic direclion.43 The fo llowing are some effeclive s trategies for downsizing. Mosl are closely Jinked to the principles for organizational justice \Ve discussed in Chapler 4:

• Invest. Companies that downsize lo focus on core compelencies are more effeclive when they invest in high-involvemenl work praclices afterward.

• Communicate. When employers make efforlS lo discuss downsizing wilh employees early, employees are Jess worried about the outcomes and feel the company is taking Lheir perspective inlo account.

• Participate. Employees worry less if they can parlicipale in the process in some way. In some companies, voluntary early reliremenl programs or severance packages can help achieve leanness without layoffs.

• Assist. Severance, exlended health care benefi ts, and job search assis tance demonslrale a company cares about ilS employees and honours their contribulions.

Companies thal make themselves lean can be more agile, efficient, and productive- but only if they make cuts carefully and help employees through the process.

Why Do Structures Differ? One of the reasons why Phil Caravaggio put a new flattened organizational structure in place was lhat he didn't want to manage employees.44 He thought his talents were better suited to

leading and slrategizing for the company. He was convinced that employees were capable of

making decisions if they were empowered to do so. He also felt lhat roles could be stifling- that it might make more sense to have fluid roles where individuals helped wilh marketing on one

project, but maybe dealt with managing the team on another project. Thus work at Precision

Nutrition is organized into somewhat fl uid project-based teams that form and disband as

I necessary. Precision Nutrition's model is very much an organic model, which we discuss below. We have descr ibed many organizational des ign oplions. Exhib it 13-5 recaps our discussions by presenting two extreme models of organizational des ign. One we will call the mechanistic model. [L's generally synonymous with Lhe bureaucracy in lhat it has h ighly s tandardized processes for work, high formalization, and more managerial hierarchy. The olher exlreme is Lhe organic model. It's flal, has fewer formal procedures for making decisions, has mulliple decision makers, and favours flexib le practices.4 5

Chapt er 13 Organizational Structure 4 75

EXHIBIT 13-5 Mechanistic vs. Organic Models

The M echanist ic Model The Organic M odel

• High specialization • Cross-functional teams • Rigid departmentalization • Cross-hierarchical teams • Clear chain of command • Free flow of information • Narrow spans of control • Wide spans of control • Centralization • Decentralization • High formalization • Low formalization

With these two models in mind, let's ask a few questions: Why are some orga- nizations structured along more mechanistic lines, whereas o thers follow organic characteristics? What forces influence the choice of design? In the following pages, we present the major causes, or determinants, of an organization's structure: strategy, orga- nizational size, technology, and environment.46 The Experiential Exercise on page 485 gives you the opportunity to create different organizational structures and see how they can affect productivity.

Organizational Strategies Because structure is a means to help management achieve its objectives, and objectives are derived from the organiza tion's overall strategy, it's only logical that structure follow strategy. If management significantly changes the organization's strategy or its values, the structure must change to accommodate. For example, recent research indicates tha t aspects of organizational culture may influence the success of CSR ini tiatives.47 If the culture is supported by the structure, the initia tives are more likely to have clear paths toward application. Most current strategy frameworks focus on three strategy dimen- sions- innovation, cost minimization, and imitation- and the structural design that works best with each.48

Innovation Strategy To what degree does an organization introduce major new products or services? An innovation s trategy strives to achieve meaningful and unique innovations. Obviously, not all firms pursue innovation. Apple and 3M do, but it certainly is not a strategy pursued by McDonald's. Innovative firms use competitive pay and benefits to attract top candidates and motivate employees to take risks. Some degree of the mechanistic s tructure can actually benefi t innovation. Well-developed communication channels, pol icies for enhancing long-term commitment, and clear channels of authority all may make it easier for rap id change to occur smoothly.

Cost-Minimization Strategy An organization pursuing a cost-minimization s tra tegy tightly controls costs, refrains from incurring unnecessary innovation or marketing expenses, and cuts prices in selling a basic product. This would describe the strategy pursued by Wal mart, as \veil as the

innovation strategy A strategy that emphasizes the introduction of major new products and services.

cost-minimization strategy A strategy that emphasizes tight cost 0011trols, avoidance of unnecessary innovatioo or marketing expenses. and price cutting.

476 Part 5 Reorganizing the Workplace

imitation strategy A strategy of moving into new products or new markets only after !heir viability has already been proven.

technology The way in which an organizatioo transfers ~s inputs into outputs.

sellers of generic grocery products. Cost-minimizing organizations usually pursue fewer pol icies meant to develop commitment among their workforce.

Imitation Strategy Organizations followi ng an imitation strategy liy to both minimize risk and maximize opportunity for profit, moving into new products or new markets only after innovators have proven their viability. Mass-market fashio n manufacturers like H&M that copy designer styles follow th is strategy, as do firms such as Hewleu-Packard and Caterpi l- lar. They follow smaller and more innovative competitors with superior products, but only after competitors have demonstrated that the market is there. Italy's Moleskine, a small maker of fashionab le notebooks, is ano ther example of im itation strategy, but in a different way; looking to open more retail shops around the world, it im itates the expansion strategies of larger, successful fash ion companies like Salvatore Ferragamo and Brunello Cucinelli.49

Exhibit 13-6 describes the structural option that best matches each s tra tegy. Inno- vators need the flexibility of the organic s tructure (although, as we noted, they may use some elements of the mechanistic structure as well), while cost minimizers seek the efficiency and stability of the mechanistic structure. Imitators combine the two structures. They use a mechanistic structu re in order to maintain tight controls and low costs in their current activities, but create organic subunits in which to pursue

new undertakings.

Organizational Size An organization's s ize significantly affects its structure. Organizations that employ 2000 or more people tend to have more specialization, more departmentalization, more vertical levels, and more rules and regulations than do small organizations. However, size becomes less important as an organization expands. Why is this? Al around 2000 employees an organization is already fairly mechanistic. An additional 500 employees will not have much impact. But adding 500 employees to an orga- nization that has only 300 members is likely to signi ficantly shift it toward a more mechanistic s tructure.

Technology Technology describes the way an organization transfers its inputs into outputs. Every organization has at least one techno logy for converting financial, human, a nd physical resources into products or services. For example, the Chinese consumer e lectronics company Haier uses an assembly-line process for mass-produced products, \vhich is complemented by more flexible and innovative

EXHIBIT 13-6 The Strat~~-St ructure Relationshi

Strategy Structural Option

What does technology

1nean'?

Innovation Organic: A loose structure; low specialization, low formalization, decentralized

Cost minimization Mechanistic: Tight control; extensive work specialization, high formalization, high centralization

Imitation Mechanistic and organic: Mix of loose with tight properties; tight con- trols over current activities and looser controls for new undertakings

Chapt er 13 Organizational Structure 477

structures to respond to customers and design new products.so Univers ities and col- leges may use a number of instruction technologies to teach students- the formal lecture method, case analysis, experiential exercises, programmed learning, online instruction, and distance learning. Regardless, organizational structures adapt to their technology.

Variations in Technology Numerous studies have examined the technology-structure relationship.SI What differentiates technologies is their degree of routineness. Routine activities are charac- terized by automated and standardized operations, such as an assembly line, where one might affix a car door to a car at set intervals; automated transaction processing of sales transactions; and printing and b inding of th is book. Non routine activities are customized and require frequent rev ision and updating. They include furniture restoring, custom shoemaking, genetic research, and the writing and editing of th is book. In general, organizations engaged in nonroutine activities tend to prefer organic structures, whi le those performing routine activi ties prefer mechanistic structures.

Environment An organization's environment includes ouL~ide institutions or forces that can affect the organization's structure, such as suppliers, customers, competitors, and public pressure groups. Some organizations face dynamic environments- rapidly changing govern- ment regulations affecting their business, new competitors, difficulties in acquiring raw materials, continually changing product preferences by customers, and so on. Other organiza tions face rela tively static environments- few forces in their environment are changing. Dynamic environments create significantly more uncerta inty for managers than do static ones. To minimize uncerta inty in key market arenas, managers may broaden their structure to sense and respond to threats. Most companies, including Pepsi and WestJet Airlines, have added social networking departments to their structure so as to respond to negative information posted on biogs. Or companies may form strategic alliances with other companies.

Any organization's environment has three d imensions: capacity, volatility, and complexity.s2

The capacity of an environment refers to the degree to which it can support growth. Rich and growing environments generate excess resources, which can buffer the orga- nization in times of relative scarcity.

Volatility describes the degree of instabi lity in an environment. A dynamic environ- ment with a high degree of unpredictable change makes it difficult for management to make accurate predictions. Because information technology changes al such a rapid pace, for instance, more organizations' environments are becoming volatile.

Finally, complexity is the degree of heterogeneity and concentration among environ- mental elements. Simple environments- like the tobacco industry, where the methods of production, competi tive and regulatory pressures, and the like have not changed in quite some time- are homogeneous and concentrated. Environments characterized by heterogeneity and dispersion- like the broadband industry- are complex and diverse, with numerous competitors.

Exhibit 13-7 summarizes our definition of the environment along its three dimen- sions. The arrows in this figure are meant to indicate movement toward higher uncer- tainty. Organizations that operate in environments characterized as scarce, dynamic, and complex face the greatest degree of uncertainty because they have high unpre- dictability, little room for error, and a diverse set of elements in the environment to monitor constantly.

environment Those institutioos or forces outside the organization that potentially affect the organization's performance.

4 78 Part 5 Reorganizing the Workplace

institutions Cultural factOfs that lead many organizatioos to have similar structures, especially !hose factors that might not lead to adaptive consequences.

EXHIBIT 13-7 Three-Dimensional Model of the Environment

Stable

Abundant

Simple Complex

Scarce

Dynamic

Given this three-dimensional defini tion of environmen.t, we can offer some general conclusions abou t environmental uncerta inty and structural arrangements. The more scarce, dynamic, and complex the environment, the more organic a structure should be. The more abundant, stable, and simple the environment, the more mechanistic a structure should be.

Institutions Another factor that shapes organizational structure is institutions. These are cultural factors that act as guidelines for appropriate behaviour.53 Jnstitutional theory describes some of the forces that lead many organizations to have similar structures and, unlike the theories we've described so far, focuses on pressures that aren't necessarily adap- tive. In fact, many institutional theorists try to highlight the ways corporate behaviours sometimes seem to be performance oriented but are actually guided by unquestioned social norms and conformity.

The most obvious institutional factors come from regulatory pressures; certain industries under government contracts, for instance, must have clear reporting rela- tionships and strict information controls. Sometimes simple inertia determines an organizational form- compan ies can be structured in a particular way just because that's the way things have always been done. Organizations in countries with high power distance might have a structural form with strict authority relationships because it's seen as more legitimate in that culture. Some have attribu ted problems in adapt- ability in Japanese organizations to the institutional pressure lo maintain authority relationships.

Sometimes organizations start to have a particular s tructure because of fads or trends. Organizations can try to copy other successful companies just to look good to investors, and not because they need that structure lo perform better. Many companies have recently tried to copy the organic form of a company like Google only to find that such structures are a very poor fit with their operating environment. Institutional pres- sures are often difficult to see specifically because we take them for granted, but that doesn't mean they aren't powerful.

Organizational Designs and Employee Behaviour

I While Phil caravaggio might find that holacracy has worked at Precision Nutrition, not everyone finds such a system a great way to work.54 Zappos, the online shoe seller, had already intro- I duced holacracy and decided to go a step further. In 2015, CEO Tony Hsieh announced that all management positions were going to be eliminated, and that employees needed to "either get

Chapter 13 Organizational Structure 479

on board with a bossless future or get out (with a generous severance)." Managers could keep

their salaries, but were told to find themselves new roles in the company. Many employees were confused, and by the end of 2015, 30 percent had resigned, which is

a large number for an organization that had previously prided itself on employee engagement.

Six months after Hsieh's announcement, some employees were still trying (unhappily) to figure out new roles for themselves.

We opened this chapter by implying that an organization's structure can have significant

effects on its members. What might those effects be'

A review of the evidence leads to a pretty clear conclusion: You cannot generalize! Not everyone prefers the freedom and flexib ility of organic structures. D ifferent fac- tors stand out in di fferent structures as well. In highly formalized, heavi ly structured, mechanistic organizations, the level of fa i rness in formal policies and procedures ( organizational justice) is a very important predictor of satisfaction. In more personal, individually adaptive organic organizations, employees va lue interpersonal j ustice more. 55 Some people are most productive and sat isfied when work tasks are standard- ized and ambiguity minimized- that is, in mechanistic structures. So any discussion of the effect of organizational design on employee behaviour has to address individual differences. To do so, let's consider employee preferences for work special ization, span of control, and central ization.56 Focus on Research looks at the impact of working from home on employee behaviour.

The ev idence generally indica tes that work specialization contributes to higher employee productivity- but at the price of job satisfaction. However, work specialization

FOCUS ~isEARCH Working from Home

Are there advantages to companies that let employees work from home? Employees who work from home even part of the time report they are happier, and as we saw in Chapter 3, happier employees are likely to be more productive than their dissatisfied counterparts.57 From an organization 's perspective, companies are realizing gains of five to seven extra work hours a week for each employee working from home. There are also cost savings, from reduced overhead for office space and utilities to elimina- tion of unproductive social time. Employers of a home-based workforce can establish work teams and organizational reporting relationships with little attention to office poli- tics, opening the potential to more objectively assign roles and responsibilities. These may be some of the reasons organizations have increasingly endorsed the concept of telecommuting.

Although we can all think of jobs that may never be conducive to working from home (such as many in the service industry), not all positions that could be based from home should be. Research indicates the success of a work-from-home position depends on the job's structure even more than on its tasks. The amount of interdependence needed between employees within a team or in a reporting relationship sometimes requires epis- temic interdependence, which is each employee's ability to predict what other employees will do. Organization consultants pay attention to how employee roles relate in the archi- tecture of the organization chart, realizing that intentional relationship building is key. Thus, while an employee may complete the tasks of a job well by working alone from home, the benefits of teamwork can be lost.

The success of a work-from-home program depends on the individual, the job, and the culture of the organization. Work from home can be satisfying for employees and efficient

: for organizations, but research suggests that there are limits. _ . .. . .. .. . .. . .. .. . .. . .. . .

f) Analyze the behavioural implications of different organizational designs.

4 80 Part 5 Reorganizing the Workplace

is no t an unending source of higher productivity. Problems start to surface, and produc- tivity begins lo suffer, when the human diseconomies of doing repetitive and narrow tasks overtake the economies of specialization. As the workforce has become more highly educated and desirous of jobs that are intrinsically rewarding, we seem lo reach the point al which productivity begins to decline as a function of specialization more quickly than in the past While decreased productivity often prompts companies lo add oversight and inspection roles, the better answer may be to reorganize work functions and accountabiliry.ss

There is still a segment of the workforce that prefers the routine and repetitiveness of highly specialized jobs. Some individuals want work that makes minimal intellectual demands and provides the security of routine; for them, high work specialization is a source of job satisfaction. The question, of course, is whether they represent 2 percent of the workforce or 52 percent Given that some self-selection operates in the choice of careers, we might conclude that negative behavioural outcomes from high specialization are most likely to surface in professional jobs occupied by individuals with high needs for personal growth and diversity.

ll's probably safe lo say that no evidence supports a rela tionship between span of control and employee satisfaction or performance. Although it's intuitively attrac- tive lo argue that large spans might lead to higher employee performance because they provide more distant supervision and more opportunity for personal initia- tive, the research fails lo support this notion. Some people like to be left alone; others prefer the security of a boss who is quickly available al all times. Consistent with several of the contingency theories of leadership discussed in Chapter 11, we would expect factors such as employees' experiences and abilities and the degree of structure in their tasks to explain when wide or narrow spans of control are likely lo contribute to their performance and job satisfaction. However, some evidence indicates that a manager's job satisfaction increases as the number of employees supervised increases.

We find fairly strong evidence linking central ization and job satisfaction. In general, less centralized organizations have a greater amount of autonomy. Autonomy appears positively related lo job satisfaction. But, again, whi le one employee may value freedom, another may find autonomous environments frustratingly ambiguous.

We can dra\v one obvious insight: People don't select employers randomly. They are attracted to, are selected by, and stay with organizations that suit their personal characteristics.59 Job candidates who prefer predictability are likely to seek out and take employment in mechanistic structures, and those who want autonomy are more likely lo end up in organic structures. So the effect of structure on employee behaviour is undoubtedly reduced when the selection process facilitates proper matching of individual characteristics with organizational characteristics. Furthermore, companies should strive lo establish, promote, and maintain the unique identity of their structures since skilled employees may quit as a result of dramatic changes.60

((F GLOBAL IMPLICATIONS \(~& When we think about how culture influences how organizations are to be ~ structured, several questions come to mind. First, does culture really mauer lo organizational structure? Second, do employees in different countries vary in their perceptions of different types of organizational structures? Finally, does downsizing have an effect for different cultures? let's tackle each question in turn.

Culture and Organizational Structure Does culture really affect organizational structure? The answer might seem obvious- yes! - bul there are reasons il may not matter as much as you th ink. The US model

Chapter 13 Organizational Structure 4 8 1

of business has been very influential on organizational structures in other countries. Moreover, US and Canadian structures themselves have been influenced by structures in other countries ( especially Japan, Grea t Britain, and Germany). However, cultural concerns still might be important. Bureaucratic structures still domina te in many parts of Europe and Asia. One management expert argues that US management often places too much emphasis on individual leadership, which may be jarring in countries where decision making is more decentralized.61

Culture and Employee Structure Preferences Research suggests that national culture influences the preference for structure.62 Orga- nizations that operate with people from high power-distance cultures, such as Greece, France, and most of Latin America, find that their employees are much more accepting of mechanistic structures than are employees from low power-distance countries. So consider cultural differences along with individual differences when predicting how structure will affect employee performance and satisfaction.

Culture and the Impact of Downsizing The changing landscape of organizational structure designs has implications for the individual progressing on a career path. Research with managers in Japan, the United Kingdom, and the United States indicated that employees who weathered downsiz- ing and resulting hybrid organizational structures considered the ir future career prospects diminished. While this may or may not have been correct, their th inking shows tha t organizational structure does affect the employee and thus must be care- fully designed.63

Summary The theme of this chapter is that an organization's internal s tructure contributes lo explaining and predicting behaviour. That is, in addition to individual and group factors, structural relationships in which people work have a bearing on employee attitudes. What is the basis for this argument? To the degree that an organization's structure reduces ambiguity for employees and clarifies concerns such as ·what am I supposed to do?" "How am I supposed to do it?" "To whom do I report?• and •To whom do I go if I have a problem?" il shapes their attitudes and facilitates and motivates them to higher levels of performance. Exhibit 13-8 summarizes what \Ve have d iscussed.

EXHIBIT 13-8 Organizational Structure: Its Determinants and Outcomes

Causes • Strategy • Size • Technology

Structural designs • Mechanistoc • Organic

determines

• Environment

associated with

l Moderated by

individual differences and cultural norms

Performance and

satisfaction

LESSONS LEARNED

• Organizational structure de1ermines the level of autonomy an individual has.

• Organizational stra1egy, orga- n izational size, technology, and environmen1 de1ermine an organ i2ation's structure.

• There is no one best struc- ture. and individuals d iffer in their preference of organiza- tional structure.

482 Part 5 Reorganizing the Workplace

Mylab Management

SNAPSHOT SUMMARY

What Is Organizational Common Organizational • The Leaner Organization: Structure? Designs Downsizing

• Work Specialization • The Simple Structure Why Oo Structures Differ? • Departmentalization • The Bureaucracy

• Organizational Strategies • Chain of Command • The Matrix Structure

• Organizational Size • Span of Control

• Technology • Centralization and Alternate Design Options

Decentralization • The Virtual Structure • Environment

• Formalization • The Team Structure • Institutions

• Boundary Spanning • The Circular Structure Organizational Designs and Employee Behaviour

Study, practise, and explore real business situations with these helpful resources:

• Study Plan: Check your understanding of chapter concepts with self-study quizzes.

• Online Lesson Presentations: Study key chapter topics and work through interactive assessments to test your knowledge and master management concepts.

• Videos: Learn more about the management practices and strategies of real companies.

• Simulations: Practise management decision-making in simulated business environments.

.,. for Review

1 . What seven key elements define an organization's structure?

2. What are the characteristics of a bureaucracy, and how does it differ from a simple structure?

3. What are the characteristics of a matrix organization?

4. What are the characteristics of virtual, team, and circular structures?

5. What are the effects of downsiz- ing on organizational structures and employees?

6. What is the difference between a mechanistic structure and an organic structure?

7. What are the behavioural impli· cations of different organiza- tional designs?

for Managers

• Know that specialization can make operations more efficient, but excessive specialization can create employee dissatisfaction and reduce motivation.

• Avoid designing rigid hierarchies that overly limit employees' empowerment and autonomy.

• Balance the advantages of remote work against the poten- tial pitfalls before adding flexible workplace options into the orga - nization's structure.

• Downsize your organization to realize major cost savings, and focus the company around core competencies - if necessary. Downsizing can have a significant negative impact on employee morale.

• Consider the scarcity, dynamism, and complexity of the environ- ment, and balance organic and mechanistic elements when designing an organizational structure.

for You

• Think about the type of organiza- tional structure that suits you best when you look for a job. You may prefer a structured workplace, like that of a mechanistic organiza- tion. Or you may prefer a much less structured workplace, like that of an organic organization.

• If you decide to start your own company, know the different structural considerations so that you can create an organization that meets your needs as both a business person and a person with additional interests.

• As a manager or as an entre- preneur, consider how much responsibility (centralization/ decentralization) you want to take for yourself compared with how much you are willing to share with others in the organization.

0 ICll:I

"' -

484 Part 5 Reorganizing the Workplace

THE END OF MANAGEMENT -"' CCI 0 POI NT

Management- at least as we know it - is dying.64 For- mal organizational structures are giving way to flatter, less bureaucratic, less formal structures. And that's a good thing.

Innovative companies such as Apple, Google, Face- book, Twitter, and Groupon were born and now thrive thanks not to a multilayered bureaucracy, but to an innovative idea that was creatively executed by a flex- ible group of people freely collaborating. Management in those companies exists to facilitate, rather than control.

The scope of what managers do has broadened to include typing, taking notes, and managing their own files/schedules, while the scope of what administrative assistants do has broadened to include making social media posts and assuming technical duties. The most innovative firms have questioned whether they need job titles at all, instead emphasizing collaboration throughout the organization.

The best companies have eliminated offices alto- gether and encourage employees to mingle and form teams according to their project interests. This suits younger workers who aspire to work with the top play- ers rather than report to them, and who value flexible hours and work-from-home options. Job titles are gone, roles are ambiguous, and reporting relationships morph by project.

The talent is ready for the elimination of management as we know it. The successful corporation of the future will have a flatter organizational structure and account - ability based on performance.

COUNTERPOINT There is no •one size fits all" approach to organizational structure. How flat, informal, and collaborative an orga- nization should be depends on many factors, but no matter what, management structure is needed. Let's consider two cases.

People lauded how loosely and informally Warren Buffett structured his investment firm, Berkshire Hath- away, until it was discovered his CFO and heir appar- ent David Sokol was on the take. Wouldn't Buffett have known Sokol was compromised if he had supervised more closely or had structures in place to check such "freedom"? It's hard to argue with Berkshire Hathaway's past successes, but they don't prove the company is ideally structured.

At Honeywell International, CEO David Cote seems relaxed and fun-loving (he rides a Harley-Davidson and wears a leather bomber jacket to work), but his hard-hitting work ethic and firm hand on the reins are legendary. As the leader of a global technology and manufacturing conglomerate, Cote keeps a tight rein on the four industry divisions and 132 000 employees.

Cote's control focus does not end at the executive suite. At the factories, job titles are painted literally on the floor to indicate who needs to be present - and standing- at organizational meetings limited to 15 min- utes. Is Cote a control freak? Maybe, but he success- fully merged three disparate company cultures and more than 250 factories. The new Honeywell has climbed the Fortune 500 ranks and pulls in over $40 billion in annual sales. Profits have increased faster than sales, in part due to Cote's insistence on freezing raises and hiring only two to three employees for every four to five who exit.

Berkshire Hathaway and HoneyweD illustrate the strong need for management structure in an ever-changing, diverse, worldwide marketplace.

Chapter 13 Organizational Structure 485

BREAKOUT GROUP EXERCISES

Fonn small groups to discuss the following topics, as assigned by your instructor:

1. Describe the structure of an organization in which you worked. Was the structure appropriate for the tasks being done?

2. Have you ever worked in an organization with a structure that seemed inappropriate to the task? What would have improved the structure?

3. You are considering opening up a coffee bar with several of your friends. What kind of structure might you use? After the coffee bar becomes successful, you decide that expanding the number of branches might be a good idea. What changes to the structure might you make?

EXPERIENTIAL EXERCISE

The Sandwich Shop Divide the class into groups of at least 4 individuals.

Background: The managers of a new chain of sandwich shops will need to determine what types of sandwiches

consumers want and find recipes and ingredients. Ingredient sources, prices, and other logistical requirements (like

refrigeration) will need to be detennined, purchasing decisions will be ongoing, and supplier relationships will need to

be managed. Financing must also be arranged at this early phase. With this groundwork, the company will move to the

next stage of marketing, including pricing and the development of advertising materials. Finally, selecting and training

workers will occur.

Each group creates the following:

A simple structure: Detennine what a simple structure would look like for this organization. Recall that a simple

structure is one in which there is little hierarchy, wide spans of control, and centralized decision making. To whom

would the various tasks described above be assigned? What sort of delegation might take place? Who would

coordinate the multiple operations? About how many people would be acting in an administrative role, and What sort

of spans of control would they have? What challenges will the organization face as it grows?

A bureaucracy: Determine what a bureaucratic structure would look like for this organization. Bureaucracies are marked by more hierarchy, small spans of control, and specialized decision making. Again, you will want to establish

task assignments, delegation, coordination, and the number of individuals required. Also consider possibilities for

future growth with a bureaucratic system.

A virtual structure: Detennine what a virtual structure would look like for this organization if many of the aspects of the business are outsourced. Consider which tasks can be adequately perfonned by individuals Who do not work

within the restaurant chain, and Which should be kept in house.

Debriefing After all groups have developed different structural options, convene for class discussion for groups to describe how

they created responsibilities for different individuals. Then the class should talk about which system of organization

seems most beneficial for this business.

4 86 Part 5 Reorganizing the Workplace

-"' CCI 0

ETHICAL DILEMMA

Post-Millennium Tensions in the Flexible Organization

The message from the business press has been con- sistent: Don't count on long-term employment.BS For

years, job seekers have been told they should expect

to be responsible for their own careers and prepare for the possibility that they will be changing jobs frequently.

A simple look at employment trends also confirms that

highly routine and well-defined jobs have been decreas- ing in number.

The shift has often been described in fairly positive terms. Managers work to create organizations that have

laudable characteristics like adaptability, flexibility, and

creativity. Author Micha Kaufman notes that doing well in contemporary business environments means "having

the flexibility to let go of the ideas of the past, the cour-

age to constantly re-evaluate plans for the future, and the presence of mind to adapt to life, as it is, in the moment.•

There is a lot of appeal in creating your own future at

work. At the same time, many workers land in precarious

posit ions. Researchers find that individuals who feel

insecure or uncertain about future employment experi- ence higher levels of psychological strain and worry.

Insecure workers also get sick more frequently. Con- trary to the positive image of the freelance worker with

boundless energy and creativity, evidence shows that

for many individuals, a lack of job security can result

in exhaustion and an apprehensive approach to work

problems.

Corporate leaders ask themselves what their role in creating job security should be. Some note that compa-

nies built around stability and security are less likely to

compete successfully and may go out of business. Many organizations try to maintain flexibility and a certain level

of security. For example, Scripps Health has maintained

a pool of internal transfer opportunities and training assignments for individuals whose job functions are no

longer needed. As a result, even within the highly volatile

health care industry, it has been able to avoid layoffs. However, systems that provide job security do not come

cheaply, nor are they feasible for all companies.

Questions

1. Do you think that stability is good or bad for employees?

2. Do employers have an ethical responsibility to pro- vide security for employees or just a warning about a lack of security?

3. If long-term employment security is not feasible, what alternatives might employers provide to help employees make smoother transitions?

CASE INCID ENT S

Creative Deviance: Bucking the Hierarchy?

One of the major functions of an organizational hierar- chy is to increase standardization and control for top

managers.66 Using the chain of command, managers

can direct the activities of subordinates toward a com- mon purpose. If the right person w ith a creative vision

is in charge of a hierarchy, the results can be phe- nomenal. Until Steve Jobs's passing in October 2011 ,

Apple had used a strongly top-down creative process

in which most major decisions and innovations flowed directly through Jobs and were subsequently delegated

to subteams as specific assignments to complete. Then there is creative deviance, in which individu-

als create extremely successful products despite being

told by senior management to stop working on them. The electrostatic displays used in more than half of

Hewlett-Packard's instruments, the tape slitter that

was one of the most important process innovations in

3M's history, and Nichia's development of multi-billion-

dollar LED bright lighting technology were all officially

rejected by the management hierarchy. In these cases,

an approach like Apple's would have shut down some

of the most successful products the companies ever

produced. Doing "business as usual" can become such

an imperative in a hierarchical organization that new

ideas are seen as threats rather than opportunities for

development.

It's not immediately apparent why top-down decision

making works so well for one highly creative company

like Apple, while hierarchy nearly ruined innovations at

several other organizations. It may be that Apple's struc-

ture is actually quite simple, with relatively few layers and

a great deal of responsibility placed on each individual for

his or her own outcomes. Or it may be that Apple simply

had a very unique leader who was able to rise above the

conventional strictures of a CEO to c reate a culture of

constant innovation.

Chapter 13 Organizat ional Structure 487

Quest.ions

1. Do you think it's possible for an organization to deliberately create an "anti-hierarchy" to encourage employees to engage in more acts of creative devi- ance? What steps might a company take to encour- age creative deviance?

2. What are the dangers of an approach that encour- ages creative deviance?

3. Why do you think a company such as Apple is able to be creative with a strongly hierarchical structure, whereas other companies find hierarchy limiting?

4. Do you think Apple's success was entirely depen- dent upon Steve Jobs's role as head of the hierar- chy? What are the potential liabilities of a company being so strongly connected to the decision making of a single individual?

"I Detest Bureaucracy" Greg Strakosch, founder and executive chairman of inter-

active media company Tech Target, hates bureaucracy.67

So he has created a workplace where his 600 employees are free to come and go as they please. There are no

set policies mandating working hours or detailing sick ,

personal, or vacation days. Employees are free to take as

much vacation as they want and to work the hours when

they are most productive- even if it's between midnight

and 4 a.m. What if you need a day off to take your kid to

camp? No problem. Strakosch says ideas like setting a

specific number of sick days "strike me as arbitrary and

dumb." He trusts his employees to act responsibly.

Strakosch is quick to state that "this isn' t a country

club." A painstaking hiring process is designed to weed

out all but the most autonomous. Managers set ambi·

tious quarterly goals, and employees are given plenty of

independence to achieve them. However, there is little

tolerance for failure. As Tech Target's website states, there

is a 100 percent focus on results. Employees are fired for

underachieving .

Moreover, while hours are flexible, employees fre-

quently put in at least 50 hours a week. In addition,

regardless of hours worked, employees are required to

remain accessible via email, cellphone, instant messag -

ing, or laptop.

Strakosch's approach seems to be working. Tech-

Target became a public company in May 2007 w ith a $100 million IPO (initial public offering) and has grown to become the leading online media company for the tech-

nology sector. In May 2014, the company was recognized as one of the "Best Places to Work, " the seventh time it

has been so recognized.

Questions

1. What type of organizational structure does TechTarget have?

2. Why does this type of structure work at Tech Target?

3. How transferable is this structure to other organizations?

4. Would you want to work at Tech Target? Why or why not?

488 Part 5 Reorganizing the Workplace

FROM CONCEPTS TO SKILLS

-"' CCI 0

Delegating Authority Managers get things done

through other people. Because

there are limits to any manager's

time and knowledge, effective

managers need to understand

how to delegate. Delegation is

the assignment of authority to

another person to carry out spe-

cific duties. It allows an employee

to make some of the decisions.

Delegation should not be con-

fused with participation. In partici -

pative decision making, there is a sharing of authority. In delegation,

employees make decisions on

their own.

A number of actions differenti -

ate the effective delegator from

the ineffective delegator. You can

become a more effective delega- tor if you use the following five

suggestions:68

• ............ Practising Skills

1. Clarify the assignment. The place to begin is to determine what is to be delegated and to whom. You need to identify the person most capable of doing the task, then determine if he or she has the time

and motivation to do the job. Assuming that you have a willing and able employee, it is your

responsibility to provide clear information on what is being delegated, the results you expect, and any time or performance expectations you hold.

Unless there is an overriding need to adhere to specific meth- ods, you should delegate only the end results. That is, get agree- ment on what is to be done and the end results expected, but let the employee decide on the means.

2. Specify the employee's range of discretion. Every act of delegation comes with constraints. You are delegating authority to act, but not unlimited authority. What you are delegating is authority to act on certain issues and, on those issues, within certain parameters. You need to specify what those parameters are so employees know, in no uncertain terms, the range of their discretion.

3. Allow the employee to participate. One of the best sources for deter- mining how much authority will be necessary to accomplish a task is the employee who will be held accountable for that task. If you allow employees to participate in determining what is delegated, how much authority is needed to get the job done, and the standards by which they will be judged, you increase employee motivation, satisfaction, and accountability for performance.

4. Inform others that delegation has occurred. Delegation should not occur in a vacuum. Not only do you and the employee need to know specifically what has been delegated and how much authority has been granted, but anyone else who may be affected by the delegation act also needs to be informed.

5. Establish feedback controls. The establishment of controls to monitor the employee's progress increases the likelihood that important problems will be identified early and that the task will be completed on time and to the desired specifications. For instance, agree on a specific time for completion of the task, and then set progress dates when the employee will report back on how well he or she is doing and any major problems that have surfaced. This can be supplemented with periodic spot checks to ensure that authority guidelines are not being abused, organization policies are being followed, and proper procedures are being met.

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

You are the director of research and development for a large pharmaceuti-

cal manufacturer. Six people report directly to you: Sue (your secretary),

Dale (laboratory manager), Todd (quality standards manager), Linda (pat-

ent coordination manager), Ruben (market coordination manager), and

Marjorie (senior projects manager). Dale is the most senior of the five man-

agers and is generally acknowledged as the chief candidate to replace

you if you are promoted or leave.

You have received your annual instructions from the CEO to develop

next year's budget for your area. The task is relatively routine, but takes

quite a bit of time. In the past, you have always done the annual budget

yourself. But this year, because your workload is exceptionally heavy, you

have decided to try something different. You are going to assign budget

preparation to one of your subordinate managers. The obvious choice is

Dale. Dale has been with the company longest, is highly dependable, and,

as your probable successor, is most likely to gain from the experience.

The budget is due on your boss's desk in eight weeks. Last year it took

you about 30 to 35 hours to complete. However, you have done a budget

many times before. For a novice, it might take double that amount of time.

The budget process is generally straightforward. You start with last

year's budget and modify it to reflect inflation and changes in departmental

objectives. All the data that Dale will need are in your files, online, or can

be obtained from your other managers.

You have just walked over to Dale's office and informed him of your

decision. He seemed enthusiastic about doing the budget, but he also has

a heavy workload . He told you, "I'm regularly coming in around 7 a.m. and

it's unusual for me to leave before 7 p.m. For the past five weekends, I've

even come in on Saturday mornings to get my work done. I can do my

best to try to find time to do the budget." Specify exactly what you would

say to Dale and the actions you would take if Dale agrees to do the budget.

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

1. Watch a classic movie that has examples of •managers" delegating assignments. Pay explicit attention to the incidence of delegation. Was delegating done effectively? What was good about the prac- tice? How might it have been improved? Movies with delegation examples include The Godfather, The Firm, Star Trek, Office Space, Nine-to-Five, and Working Girl.

2. The next time you have to do a group project for a class, pay explicit attention to how tasks are delegated . Does someone assume a leadership role? If so, note how c losely the delegation process is followed. Is delegation different in project or study groups than in typical work groups?

Chapter 13 Organizational Structure 489

Reinforcing Skills

•••••••

490

Organizational Change

O Identify the forces for change.

Can Cirque du Soleil continue

to adapt in order to deal with the challenges

in the circus world that brought down the

Ringling Bros. Circus?

f) Compare the four main approaches to managing organizational change. f) Describe the sources of resistance to change. C, Describe three ways to create a culture for change.

ontreal-based Cirque du Soleil has contin- ued to reinvent itself, even while it faced Sarah EdwardsllP= li',l.com/Mamy financial difficulties during 2011-2013

that resulted in 600 layoffs.1 Other circuses have been shuttered in recent years. Ringling Bros. and Barnum & Bailey Circus, the oldest circus in North America, closed down in May 2017 after 146 years. The circus experienced

declining attendance, high costs, and battles with animal rights groups. It did not seem to have an idea for moving the circus in a different direction. Kenneth Feld, chairman and CEO of Feld Entertainment, which

owns Ringling Bros., said times had changed too much to save the circus. "It's a different model that we can't see how it works in today's world to justify and maintain an affordable ticket price. So you've got

all these things working against it.• By contrast, Cirque du Soleil seems to relish change. The circus had been privately owned since its start in 1984, bu1 in 2015, 90 percent of the company was sold to investors, includ-

ing a 20 percent stake to Chinese investment firm Fosun. Cirque du Soleil is just one of many organizations that needs to reinvent itself to

survive in a challenging business environment, something that Ringling Bros. was not able to do. Engaging in any kind of change in an organization is not easy. In this chapter,

we examine the forces for change, managing change, and contemporary change issues.

• Are there positive approaches to change?

\ I I ' , :o: ~ ' , '

'l'IIE BIG IDEA • How do you respond to change?

• What makes organizations resist change? Change is

ineviLable, and being able Lo adapl Lo change \.vill help

tl1e process go more smootl1ly.

491

492 Part 5 Reorganizing the Workplace

O Identify the forces for change.

Forces for Change No company today is in a particularly s table environment. Even those with dominant market share must change, sometimes radically. For example, the market for smarl- phones has been especiallyvolalile.2 During the fourth quarter of 2016, 78.29 million iPhones were sold, compared with 76.78 million Samsung phones. Contrast th is with the fourth quarter of 2015, in which somewhat fewer {74.78 million) iPhones were sold, vs. somewhat more {81.3 million) Samsung phones. At the same time, the Chinese mobile phone company Xiaomi has been rapidly rising. A look just a few years further back shows formerly dominant players like Nokia or Research in Motion {RIM, makers of the BlackBerry) shrinking dramatically in s ize. RIM held zero percent market share at the end of2016 for its smartphone, having reached its peak sales in 2011, with almost 52 mill ion devices sold. In th is and many markets, competitors are constantly entering and exiling the field, ga ining and losing ground quickly.

"Change or die!• is the rallying cry among today's managers worldwide. Exhibi t 14-1

summarizes six distinct forces that act as stimulants for change. In a number of places in th is book, we have discussed the changing nature of the

workforce. Almost every organization must adjust lo a multicultural environment, demo- graphic changes, immigration, and outsourcing.

Technology is changing jobs and organizations. It is not hard to imagine the very idea of an office becoming an antiquated concept in the near future.

The Canadian housing and financial sectors have experienced extraordinary economic shochs in recent years, although not lo the extent that they have in the United States. The financial turbulence that began in 2008 has eroded the average employee's re tirement accow1l considerably, forcing many employees to postpone their anticipated retirement date and, in some cases, making i l harder for younger people to find jobs. Mean\vhile, spending has dropped, and many Canadian retailers are still suffering the consequences today.

Competition has changed. Competitors are as likely to be across the ocean as across town. Successfu l organizations are fast on their feel, capable of developing new products

EXHIBIT 14-1 Forces for Change

Force

Nature of the workforce

Technology

Economic shocks

Competition

Social trends

World politics

Examples

More cultural diversity

Aging population

Many new entrants with inadequate skills

Faster, cheaper, and more mobile computers

Online music sharing

Deciphering of the human genetic code

Rise and fall of dot-com stocks

Record low interest rates

Turbulent financial markets

Global competitors

Mergers and consolidations

Growth of e-commerce

Internet chat rooms

Retirement of Baby Boomers

Rise of discount and "big box" retailers

Global financial crises

Opening of markets in China

Government shakeups around the world

Extreme weather

Chapter 14 Organizational Change 493

The transformational leadership of Netflix CEO Reed Hastings has helped the company grow from a small DVD rental service to an Internet streaming service with 53 million customers in 50 countries.

rapidly and getting them to market quickly. In other words, they are flexible and will require an equally flexible and responsive workforce.

Social trends don't remain static either. Consumers who are otherwise strangers now meet and share product information in chat rooms and biogs. Organizations must therefore continually adjust product and marketing strategies to be sensitive to chang- ing social trends. For example, consumers, employees, and organizational leaders are increasingly sensitive lo environmental concerns. A~ a result, •green" practices have quickly become expected rather than optional.

Not even globalization's strongest proponents could have imagined the changing world politics in recent years. We have seen a set of financial crises that rocked global markets; Japan's fall into recession in 2014; a dramatic rise in the power and influence of China; attempts by Russia to reinstate itself as a global power; intense shakeups in governments around the world, including the rise of Donald Trump; and the societal effects of extreme weather. Throughout the industrialized world, businesses- particularly in the banking and financial sectors- have come under new scrutiny.

Opportunities for Change Organizations have many opportunities to engage in change. They can change their motivation structures or redesign jobs. They may engage in corporate social responsi- bility. They may organize more around teams or share more leadership by empower- ing employees. They may create flauer structures or move lo more modular structures. Sometimes the entire culture of the organization needs to change for organizational change lo be successful, as Case lncident- Spn,cing Up Walmart on page 517 shows.

Exhibit 14-2 summarizes the range of change targets avai lab le to organizations. As we discussed the workplace in th is book, and talked about possible change, we

might have implied that change happens easily, perhaps overnight, and does not require careful thought or planning. This implication exists because we did nol discuss how these changes actually happen in the workplace, what has to be done lo achieve change, and how difficult change actually is. We wanted you to understand what changes were possible before we discussed how to carry them oul.

494 Part 5 Reorganizing the Workplace

f) Compare the four main approaches to man- aging organizational change.

change agents People who act as catalysts and assume the responsibil· ity for managing change activities.

EXHIBIT 14-2 Organizational Targets for Change

Objectil,e

Set or modify specific performance

targets

Clarify or create strategic and

operational plans

Culture

Clarify or create core beliefs and values

Purpose

Clarify or create mission and objectives

People

Update recruiting and selection practices,

improve training and development

Technology

Improve equipment, facilit ies, and workflows

Update organizational design and coordination

and mechanisms

Update job designs for individuals

and groups

Source: Organizational Behavior by Scherrnertiom, John R.; Hunt, James G.; Osborn, Richard. Reproduced with permission of John Wiley in the format Republish in a book via Copyright Clearance Center.

Change Agents Change agents manage change activities in an organization. 3 They see a future for the organization that o thers have not identified, and they are able to motivate, invent, and implement this vision. Change agents can be managers, nonmanagers, employees of the organization, or outside consultants.4

In some instances, internal management wi ll hire outside consultants lo provide advice and assistance wi th major change efforts. Because they are from the outside, these individuals can offer an objective perspective often unavailable to insiders. O utside consultants, however, are disadvantaged because they usually have an inadequate under- standing of the organization's history, culture, operating procedures, and personnel. Outside consultants also may be prone lo initiating more drastic changes- which can be a benefit or a disadvantage- because they don' t have to live with the repercussions after the change is implemented. In contrast, internal staff special ists or managers, when acting as change agents, may be more thoughtful ( and possibly more cautious) because they have to live with the consequences of their actions.

Approaches to Managing Change The creative teams at Cirque du Sole ii are continually trying to improve their work. 5 In 2014,

Dominic Champagne, the director, and Giles Martin, the creative director of Cirque du Soleil's

"The Beatles LOVE," decided to refresh the show. It took them two years to remake the show.

When asked why they did it, Cirque's director of creation, Chantal Tremblay, responded, "I think

because we like the show so much and it's going really well, it's kind of giving back to the people

after 10 years. We're adding more oomph to the wow that already existed." For organizations

I afraid of change, this would be a surprising answer. Instead, this creative team saw a positive challenge in reimagining "LOVE." What has made Cirque's approach to change successful'

Chapter 14 Organizational Change 495

A&W is growing its Millennial customers by opening more downtown locations and targeting Milennials' desire for quality ingredients (e.g., burgers are oow made w~h hormone- and steroid-free bee~. Attracting Millennial customers is half the battle. Convincing hundreds of franchisees to buy into the new focus is the other.

To this point, we have discussed the kinds of changes organizations can make. Assuming that an organization has uncovered a need for change, how does it engage in the change process? We turn to four approaches to managing change: Lewin's classic three-step model of the change process, Kotler's eight-step plan for implementing change, action research, and appreciative inquiry.

Lewin's Three-Step Model Kurt Lewin argued that successful change in organizations should fo llow three steps, which are illustrated in Exhibit 14-3: unfreezing the status quo, moving to a new stale, and refreezing the new change to make it permanent.6

By definition, the status quo is an equilibrium stale. To move from this equilibrium- to overcome the pressures of both individual resistance and group conformity- unfreez- ing must happen in one of three ways (see Exhibit 14-4). The driving forces, which direct behaviour away from the status quo, can be increased. The restraining forces, which hinder movement from the existing equilibrium, can be decrea~ed. A third al ternative is to combine the first two approaches. Companies that have been successful in the past are likely to encounter restra ining forces because people question the need for change.7

The value of th is model can be seen through the example of a large oil company that decided lo consolidate its three regional marketing offices in Winnipeg, Calgary, and Vancouver into a single regional office in Calgary. The decision was made in Toronto, and the people affected had no say wha tsoever in the decis ion. The reorganization meant transferring more than 150 employees, e liminating some duplicate managerial positions, and instituting a new hierarchy of command.

EXHIBIT 14-3 Lewin's Three-Step Change Model

Unfreezing Moving Refreezing

unfreezing Change efforts to 0\/l!r- oome the pressures of both indillidual resistance and group conformity.

moving Efforts to get employees involved in the change process.

refreezing Stabilizing a change interventioo by balancing driving and restraining forces.

driving forces Forces that direct behaviour away from the status quo.

restraining forces Forces that hinder movement away from the status quo.

4 96 Part 5 Reorganizing the Workplace

EXHIBIT 14-4 Unfreezing the Status Quo

Desired state

Status quo

Restraining forces

i i i i i ,,"" ______ ,; t t t t t

Driving forces

,I ,I

Time ---_.

The oil company's management expected employee resistance to the consolida- tion and outlined its alternatives. Those in Winnipeg or Vancouver might not wan t to transfer to another city, pull children out of school, make new friends, adapt to new co-workers, or undergo the reassignment of responsibil it ies. Posi tive incentives such as pay increases, liberal moving expenses, and low-cost mortgage funds for new homes in Calgary m ight encourage employees to accept the change. Management migh t also unfreeze acceptance of the status quo by remov ing restrain ing forces. It could counsel employees individually, hearing and clarifying each employee's specific concerns and apprehensions. Assuming that most of the fears were unjustified, the counsellor could

assure the employees that there was noth ing to fear and then demonstrate, through tangible evidence, that restraining forces were un\varranted. If resistance were extremely

high, management might have to resort to both reducing resistance and increasing the attractiveness of the alternative if the unfreezing were to be successful.

Once the movement stage begins, it's important to keep the momentum going.

Organizations that build up to change do less well than those that get to and through the moving s tage qu ickly.

When change has been implemented, the new si tuation must be refrozen so that it can be sustained over time. Without this last step, change likely will be short-lived and employees will try to go baclc to the previous equilibrium state. The objective of refreez- ing. then, is to stabil ize the new situation by balancing the driving and restraining forces.

How can the oil company's management refreeze its consolidation change? By systematically replacing temporary forces with permanent ones. Management m ight impose a new bonus system t ied to the specific changes desired. The formal rules and regulations governing behaviour of those affected by the change should also be revised to reinforce the new situation. Over time, of course, the work group's own norms will evolve to susta in the new equilibrium. But until that point is reached, management should rely on more formal mechanisms.

A key feature of Lewi n's three-step model is its conception of change as an episodic

activity. For a debate about whether organizational change today is an episodic activity or an ongoing and at times chaotic process, see Point/Counterpoint on page 514.

Kotter's Eight-Step Plan for Implementing Change John Kotter of Harvard Business School bui lt on Lewin's three-step model to create a more detailed approach for implementing change.8

Koller began by listing common failures that occur when managers try to initiate change. They may fa il to create a sense of urgency about the need for change, a coal ition for managing the change process, or a vision for change. They may not effectively com- municate the vision or may not anchor the changes into the organiza tion's culture. They

Chapter 14 Organizational Change 497

EXHIBIT 14-5 Kotter's Eight-Step Plan for Implementing Change

1 . Establish a sense of urgency by creating a compelling reason for why change is needed.

2. Form a coalition with enough power to lead the change.

3. Create a new vision to direct the change and strategies for achieving the vision.

4. Communicate the vision throughout the organization.

5. Empower others to act on the vision by removing barriers to change and encouraging risk-taking and creative problem-solving.

6. Plan for, create, and reward short-term "wins" that move the organization toward the new vision.

7. Consolidate improvements, reassess changes, and make necessary adjustments in the new programs.

8. Reinforce the changes by demonstrating the relationship between new behaviours and organizational success.

Source: Based on J. P. Kotter, Leading Change (Boston: Harvard Business School Press, 1996).

also may fai l to remove obstacles that could impede the vision's achievement or may not provide short-term and achievable goals. Finally, they may declare victory too soon.

Kotter then established eight sequential steps to overcome these problems. These steps are listed in Exhibit 14-5.

Notice how Exhibit 14-5 builds on Lewin's model. Kotter's first four steps essentially represent the "unfreezing• stage. Steps 5 through 7 represent "moving." The final step works on •refreezing." Kotter's contribution lies in providing managers and change agents with a more detailed guide for successfully implementing change.

Action Research Action research refers to a change process based on the systematic collection of data and then selection of a change action based on what the analyzed data indicate.9 Its value is in providing a scientific method for managing planned change. Action research consists of five steps: d iagnosis, analysis, feedback, action, and evaluation.

The change agent, often an outside consultant in action research, begins by gather- ing information about problems, concerns, and needed changes from members of the organization. This diagnosis is analogous to the physician's search to find specifically what ails a patient. In action research, the change agent asks questions, reviews records, interviews employees, and actively listens to their concerns.

Diagnosis is followed by analysis. What problems do people key in on? What pat- terns do these problems seem to take? The change agent organizes this information into primary concerns, problem areas, and possible actions.

Action research requires the people who will participate in any change program to help identify the problem and determine the solution. So the th ird step- feedback- requires sharing with employees what has been found from the first and second steps. The employees, with the help of the change agent, develop action plans for bringing about any needed change.

Now the action part of action research is set in motion. The employees and the change agent carry out the specific actions they have identified to correct the problems.

The final step, consistent with the scientific underpinnings of action research, is eval- uation of the action plan's effectiveness, using the initial data gathered as a benchmark.

Action research provides at least two specific benefits for an organization. First, it is problem focused . The change agent objectively looks for problems, and the type

action research A change process based on the systematic collection of data and then selection of a change action based on what the analyzed data indicate.

4 98 Part 5 Reorganizing the Workplace

appreciative inquiry (All An l approach lo change Iha! seeks to identify !he unique qualities and special strengths of an 0<ganization, which can !hen be built on to improve performance.

of problem determines the type of change action. This is a process that makes intui- tive sense. Unfortu nately, this too often does nol happen in reality. Change activities can be solution-centred and therefore erroneously predetermined. The change agent has a favourite solution- for example, implementing flextime, teams, or a process re-engineering program- and then seeks out problems that his or her solution fits. A second benefit of action research is the lowering of resistance. Because action research involves employees so thoroughly in the process, it reduces resistance to change. Once employees have actively participated in the feedback stage, the change process typically takes on a momentum of its own.

Appreciative Inquiry Most organizational change approaches are problem cen- tred. They identify a problem or set of problems, then look for a solution. Appreciative inquiry (AI) accentuates the positive. 10 Rather than looking for problems to fix, this approach seeks lo identify the un ique qualities and special strengths of an organization, which can then be built on to improve performance. That is, it focuses on an organiza- tion's successes rather than on its problems.

Are there posi- tive approaches

to change'?

The AI process (see Exhibit 14-6) consists of four steps, or "Four D's," often played out in a large group meeting over two or three days, and overseen by a tra ined change agent:

• Discovery. Identify what people think are the strengths of the organization. Employees recount times they felt the organization worked best or when they specifically felt most satisfied with their jobs.

• Dreaming. Employees use information from the discovery phase to speculate on possible futures for the organization, such as what the organization will be like in five years.

• Design. Based on the dream articulation, participants focus on finding a com- mon vision of how the organization will look, and agree on its un ique qualities.

• Destiny. In this final step, participants define the organization's destiny or how Lo fulfill their dream, and they typically write action plans and develop imple- mentation strategies.

Al has proven lo be an effective change strategy in organizations such as Toronlo- based Orchestras Canada; Ajax, Ontario-based Nokia Canada; Burnaby, BC-based TELUS; Calgary-based Encana; Toronto-based Parkinson Society Canada; and Toronto- based Toronto Western Hospital.

Professor Gervase Bushe of the Segal Graduate School of Business, Simon Fraser University, conducted a study al eight differen t sites of a Canadian school district to develop some understanding of factors that make AI successful in creating large-scale change. Of the eight sites, four showed transformational change, two showed incremen- tal change, and two showed linle or no change. The findi ngs indicate that being able lo

EXHIBIT 14-6 The "Four D's" of Appreciative Inquiry

Discovery

Finding out the "best of what is"

Dreaming

Visualizing "what might be"

Design

Designing "what should be"

Dest iny

Implementing "what w ill be"

Source: Based on D. L. Cooperrider and D. Whitney, Collaborating for Change: Appredative Inquiry (San Francisco: Berrett-Koehler, 2000).

Chapter 14 Organizational Change 499

generate "new, compelling ideas" was critical lo the success of the change project. The sites that were already reasonably happy with their schools and leadership showed less transformational change. It was in the schools wi th widely acknowledged problems, that participants tended to engage more, and generated many ideas that led lo change.11

The use of Al in organizations is relatively recent, and il has not yet been determined when it is most appropriately used for organizational change.12 More recently, scholars are find ing that while il does give us the opportunity of viewing change from a much more positive perspective, in general Al has not lived up lo its promises. 13 But research- ers continue to study it.

" 0 )'1 ~ CAREER OBJECTIVES

I ~ How Do I Fire Someone? One of t he people who reports to me really isn' t living up to his job responsibilities, and I'm afraid t hat I have to let him go. I have no idea how to approach him so the meet - ing w ill tu rn out okay. What 's t he best w ay t o te rminate him?

-Ariana

Dear Ariana: Most supervisors agree that termi- nating a problem employee can be one of the hardest parts of manage- ment. In general, the number-one way to reduce the stress of firing is to avoid giving surprises. A problem employee needs to be told as soon as possible that there are issues with performance. Be sure to document performance problems early, and let your employee know the conse- quences of failing to improve. It may even be the case that identifying problems can eliminate the need for firing through initiating development strategies and providing training that may improve his performance.

If you've decided the termina- tion needs to proceed, then begin to plan the termination meeting. Good HR guidance can be one of your best resources in this process. It's natural to be worried about how your employee is going to react, but here are some strategies that may help you end the employment relationship in a way that minimizes conflicts:

• Ask your HR representatives what alternatives and techniques they would recommend. Many compa- nies have established policies and procedures that will help you conduct this meeting in a professional manner.

• Practise. A chance to practise the meeting with a neutral party (not someone with connections to the person or your organization) will help you reduce stress and antici- pate how the meeting will go.

• Be sure to respect your employee during the process. When possible, conduct the termination behind closed doors. Send a clear mes- sage that his employment is at an end. The last thing you want is a situation where he doesn't get the message or feels you are so indeci- sive that he can argue his way out of the termination. Attempts to "soften the blow" by providing positive feed-

back or working your way up to the bad news are often confusing and can create an opening for an extended, unpleasant, and unpro- ductive argument.

• Avoid going over past mistakes in detail. At the point of termination, there is no reason to rehash old problems you've previously dis- cussed- it's better to just make a clean statement that things aren't working out, and your documenta- tion should have the details for later reference if needed. Going over the

reasons the relationship is over will make your employee feel insulted or offended.

• Have an after-meeting plan. What are your organization's policies? For instance, does your employee need to be escorted immediately out of the building? What are the policies for returning business property? Demon- strate adherence to the plan to keep the termination process objective.

Of course, none of this advice can remove all the stress of terminations, but a combination of preparation, respect, and clarity can help make the situation better than it would be otherwise.

Sources: S. R. McDonnell, "1 O Steps Needed to Properly Fire Someone; Entrepreneur, May 26, 2015, http://www.entrepreneur.com/article/ 246573; E. Frauenheim, •Employee Crisis CommL11ications 101 ," WOtWorce, November 13, 2013, http://www. wo,1<1orce.oom/articles/20036- employee-crisis-oommunications-101; and R. A Mueller-Hanson and E. D. Pulakos, "Putting the 'Performance' Back in Performance Manage- ment," SHRM-SIOP Selence of HR White Paper Series, 2015, http://www.shnn.org/Research/ Documents/SHRM-SIOP%20Perfonnance%20 Management.pd!.

The opinions provided here are of the man8(J- ers and authors only and do nor necessariy reflect those of their organizations. The authors or managers are not responsible for any errors or omissions, or for the results obtained from the use of this information. In no event will the authors or managers, or their related partner- ships or corporations thereof, be liable to you or anyone else for any decision made or action taken In reliance on the opinions provided here.

500 Part 5 Reorganizing the Workplace

9 Describe the sources of resistance to change.

Resistance to Change

I During the remaking of Cirque du Soleil's "The Beatles LOVE," many of the performers were acting each night in the older version of the show and then learning the new version (which entailed lengthy rehearsals) by day. For many employees, this could be a challenging task.14

Change is hard enough without having to do your old job and your new job simultaneously. When

creative director Giles Martin was asked whether this change was difficult on the performers,

he replied that it was just the opposite:

It's totally the reverse in the sense that they are so happy to be able to live through a little

creation ... . Now we're doing staging officially, so we're really in the mode of creation,

and the artists love it because they have that chance to be there and listen to the direc-

tion of what he [Dominic Champagne, the director] wants in those numbers . . . . The

performers and technical crew want to work and help to make changes for the show,

which is going well.

As we explore this section on resistance to change, you will see that Cirque du Soleil knows

how to manage change effectively with its employees. The performers were encouraged to

I participate and be involved and they were kept in the communication loop. What other tactics might the directors have used to help prevent resistance to change' Our egos are fragile, and we often see change as threatening. Even when employees are shown da ta that suggest they need to change, they latch on to whatever data they can find that suggest they are okay and don' t need to change.15 Employees who have negative feelings abou t a change cope by not thinking about it, increasing their use of sick time, or quitting. All these reactions can sap the organization of vi tal energy \vhen it's most needed. 16 Resistance to change doesn' t just come from lower levels of the organization. In many cases, higher-level managers will resist changes proposed by subordinates, especially if these leaders are focused on immediate performance. 17

Conversely, when leaders are more focused on mastery and exploration, they are more will ing to hear and adopt subordinates' suggestions for change.

Resistance to change can be positive if it leads to open discussion and debate. 18

These responses are usually preferable to apathy or silence and can indicate that mem- bers of the organization are engaged in the process, providing change agents an oppor- tunity to explain the change effort. Change agents can also monitor the resistance to modify the change to fit the preferences of members of the organization.

Resistance to change does not necessarily surface in standardized ways. It can be overt, implicit, immediate, or deferred. It is easiest for management to deal with resis- tance when it is overt and immediate, such as complaints, a work slowdown, or a strike threat. The greater challenge is managing resistance that is implicit or deferred because these responses- loss of loyalty or motivation, increased errors, or absenteeism- are more difficu lt to recognize. Deferred actions, sometimes surfacing weeks, months, or even years later, cloud the link between the change and the reaction to it. Or a single change that in and of itself might have little impact becomes the straw tha t breaks the camel's back because resistance to earlier changes has been deferred and stockpiled.

Let's look at the sources of resistance. For analytical purposes, we have categorized them by individual and organizational sources. In the real world, the sources often overlap.

Individual Resistance Individual sources of resistance to change reside in basic human characteristics such as perceptions, personalities, and needs. Exhibit 14-7 summarizes four reasons why individuals may resist change: 19

• Self-interest. People worry that they will lose something of value if change hap- pens. Thus, they look after their own self-interest rather than that of the total organization.

Chapter 14 Organizational Change 501

• Misunderstanding and Jack of tn,st. People resist change when they don' t under- stand the nature of the change and fear that the cost of change will outweigh any potential gains for them. This often occurs when they don't trust those initiating the change.

• Different assessnienls. People resist change when they see il differently than their managers do and th ink the costs outweigh the benefits, even for the organization. Managers may assume that employees have the same informa- tion that they do, bul this is not always the case.

• Low tolerance for change. People resist change because they worry that they do nol have the skills and behaviour requi red of the new situation. They may feel that they are being asked to do too much, too quickly.

In addition lo the reasons jusl outlined, individuals sometimes worry that being asked lo change may indicate that what they have been doing in the past was somehow wrong. Managers should not overlook the effects of peer pressure on an individual's response lo change. As well, the manager's altitude (positive or negative) toward the change and his or her relationship wi th employees wi ll affect an individual's response lo change.

Ho,,v do you respond to

change'!

The Ethical Dilemma on page 516 looks at one employee's resistance lo a change in the workplace and asks you to consider whether the plan for implementing that change might have been part of the problem.

Organizational Resistance Organizations, by their very nature, are conservative. They actively resist change. You don't have lo look far lo see evidence of this phenomenon. Government agencies want lo continue doing what they have been doing for years, whether the need for their ser- vice changes or remains the same. Organized religions are deeply entrenched in their history. Attempts lo change church doctrine require great persistence and patience. Educational institutions, which exist lo open minds and challenge established ways

EXHIBIT 14-7 Sources of Individual Resistance to Change

Low tolerance for change

Self-interest

Individual Resistance

Different assessments

.,......... Misunderstanding and lack of trust

Source: Based on J. P. Kotter and L. A. Schlesinger, "Choosing Strategies for Change,' Harvard Business Review, July-August 2008, pp. 107-109.

502 Part 5 Reorganizing the Workplace

of thinking, are themselves extremely resistant to change. Most school systems are using essentially the same teach- ing technologies today as they were 50 years ago. Similarly, most business firms appear highly resistant to change. Case Incident- When Companies Fail to Change on page 517 con- siders how the fail ure to innovate has left a number of once leading-edge companies at the back of the pack.

Six major sources of organizational resistance ( shown in Exhibit 14-8) are as follows:

\.Vhat makes organizations resist change'?

• Stn1ctural inertia. Organizations have built-in mechanisms- such as their selec- tion processes and formalized regulations- to produce stability. When an organi- zation is confronted with change, th is structural inertia acts as a counterbalance.

• Lim.ited focus of change. Organizations are made up of a number of interdepen- dent subsystems. One cannot be changed without affecting the others. Limi ted changes in subsystems lend lo be null ified by the larger system.

• Group inertia. Even if individuals want to change their behaviour, group norms may act as a constraint.

• Threat to expertise. Changes in organizational pallerns may threaten the exper- tise of specialized groups.

• Threat to established power relationships. Any red istribution of decision-making authority can threaten Jong-established power relationships with in the organization.

• Threat to established resource allocations. Groups in the organization that control sizable resources often see change as a threat. They tend to be content with the way things are.20

The Experiential Exercise on pages 515- 516 asks you to identify and overcome resis- tance to organizational change.

Overcoming Resistance to Change It's worth noting that not all change is good. Rapid, transformational change is risky, so change agents need to carefully think through the full implications. Speed can lead lo bad decisions, and sometimes those ini tiating change fa il to rea lize the fu ll magnitude of the effects or their true costs.

EXHIBIT 14-8 Sources of Organizational Resistance to Change

Threat to established resource allocations

Threat to established power relationships

Threat to expertise

Organizational Resistance

Structural Inertia

Group inertia

Limited focus of change

Chapter 14 Organizational Change 503

Eight tactics can be used by change agents to deal with resistance lo change.21 Let's review them briefly.

• Communication. Communication is more important than ever in times of change. A study of German companies revealed that changes are most effective when a company communicates its rationale, balancing various stakeholder ( shareholders, employees, community, customers) interests, compared lo a rationale based on shareholder interests only.22 Other research on a chang- ing organization in the Philippines found that formal information sessions decreased employees' anxiety about the change, while providing high-quality information about the change increased their commitment to it. 23

• Participation. It's difficult for individuals to resist a change decision in which they have participated. Assuming that the participants have the expertise to make a meaningful contribution, their involvement can reduce resistance, obtain commitment, and increase the quality of the change decision. How- ever, against these advantages are the negatives: potential for a poor solution and great consumption of lime.

• Building support and commitment. When managers or employees have low emotional commitment to change, they resist it and favour the status quo. 24

Employees are also more accepting of changes when they are commiued to the organization as a whole.25 So firing up employees and emphasizing their commitment to the organization overall can help them emotionally commit to the change rather than embrace the status quo. When employees' fear and anxiety are high, counsell ing and therapy, new-skills train ing. or a short paid leave of absence may facilitate adjustment to change.

• Positive relationships. People are more willing to accept changes if they trust the managers implementing them.26 One study surveyed 235 employees from a large housing corporation in the Netherlands that was experiencing a merger. Those who had a more positive relationship with their supervisors, and who felt that the work environment supported development, were much more pos- itive about the change process.27 Underscoring the importance of social con- text, other research shows that even individuals who are generally resistant lo change wi ll be more willing to accept new and differen t ideas when they feel supported by their co-workers and believe the environment is safe for taking risks.28 Another set of studies found that individuals whose dispositions made them more resistant to change felt more positive if they trusted the change agent.29 This research suggests that if managers are ab le lo facilitate positive relationships, they may be able to overcome resistance lo change even among those who ordinarily don't like changes.

• Implementing changes fairly. One way organizations can minimize the nega- tive impact of change is to make sure the change is implemented fairly. As \Ve learned in Chapter 4, procedural fa irness becomes especially important when employees perceive an outcome as negative, so it's crucial that employ- ees see the reason for the change and perceive its implementation as consis- tent and fa ir.30

• Manipulation and co-optation. Manipulation refers to covert influence auempL~. Twisting and distorting facts to make them more attractive, withholding unde- sirable information, and creating false rumours to get employees to accept a change are all examples of manipulation. If management threatens to close a manufacturing plant whose employees are resisting an across-the-board pay cut, and if the threat is unfounded, management is using manipulation. Co- optat.ion, on the other hand, is a form of both manipulation and participation.

504 Part 5 Reorganizing the Workplace

It seeks to buy off the leaders of a resis tance group by giving them a key role, seeking their advice not to find a beuer solution but to get their endorsement. Both manipulation and co-optation are relatively inexpensive ways to gain the support of adversaries, but they can backfire if the targets become aware they are being tricked or used. Once that is discovered, the change agen t's credibil- ity may drop to zero.

• Selecting people who accept change. Research suggests that the abil ity to easily accept and adapt to change is related to personal ity- some people simply have more positive attitudes.31 Individuals who are open to experience, take a posi tive attitude toward change, are willing to take risks, and are flexible in their behaviour are prime candidates. One study of managers in the United States, Europe, and Asia found that those with a positive self-concept and high risk tolerance coped better with organizational change. A study of 258 police officers found that those who were higher in the need for growth and who had an internal locus of control held more positive attitudes about orga- nizational change efforts.32 Individuals higher in general mental abil ity are also belier able to learn and adapt to changes in the workplace.33 In sum, an impressive body of evidence shows organizations can facilitate change by selecting people predisposed to accept it.

Besides selecting individuals who are will ing lo accept changes, it is also possible to select teams that are more adaptable. In general, teams that are strongly motiva ted by learning about and mastering tasks are better able to adapt to changing environments.34 It may be necessary to consider not only individual motivation but also group motivation when planning to imple- ment changes.

• Coercion. Coercion is the application of direct threats or force upon the resist- ers. If management is determined to close a manufacturing plant whose employees do not accept a pay cut, the company is using coercion. Other examples include threatening employees with transfers, blocked promotions, negative performance evaluations, and poor lel!ers of recommendation. Coer- cion is most effective when some force or pressure is enacted on at least some resisters- for instance, if an employee is publicly refused a transfer request, the threat of blocked promotions will become a real possibil ity in the minds of other employees. The advantages and drawbacks of coercion are approxi- mately the same as those for manipula tion and co-optation.

As you read OB in the Workplace, consider which of the above steps staff at Rockwood Institution used to help inmates introduce changes into their lives.

Habitat for Humanity and Rockwood Institution Partner to Change Lives

How can prison inmates be encouraged to learn new skills and influence t heir com- munity in positive ways? Recidivism rates among released offenders are higher when those offenders don't perceive any other lifestyle options that would enable them lo effectively support themselves and their loved ones.35 At Rockwood Institution in Manitoba, Assistant Warden Shannon Plowman has found an effective formu la lo change recidivism rates by partnering with Linda Peters, the vice-president of Program Delivery for Habi tat for Humanity. Their program, which is financially supported by Public Safety Canada and Human Resources and Skills Development Canada, gives

Chapter 14 Organizational Change 505

minimum-security inmates with poor job prospects the opportunity to learn marketable construction skills in a safe and supportive environment.

Al Rockwood, inmates who participate in the Habitat for Humanity specialized work program are provided with formal instruction on tool use and construction basics. Then, under professional supervision, they apply those skills to building a ready-to- transport house on the grounds of the correctional facil ity. The homes are then relocated to appropriate sites and are provided lo needy fam ilies on the Habitat for Humanity wai ting list. El igible program "graduates" can also do supervised work in the broader community, receiving day passes lo help on Habitat for Humanity builds in nearby Winnipeg and surrounding communities. These day passes are highly desirable, viewed as a privilege and reward. Upon release, some people even find transitional employment with Habitat for Humanity, working there for several months to develop an employ- ment history and contacts in the construction industry.

This program manages change well. ll focuses on providing education and fostering participation and direct involvement. Parole officers try to recommend new partici- pants who are already open lo changing their lives and most •graduates" advocate the program lo other inmates. Support and commitment to the program are increased by allowing some participants to meet the fam ilies receiving the new homes, something that inmates report as being a transformative experience in their lives. One participant stated, •1 never realized I could be proud for good things I was doing. Before I was always admired for being scary and fighting, it surprises me how proud I am of work- ing on th is house."

Rockwood officials and Habitat for Humanity staff work together to create an envi- ronment that enables, supports, and then reinforces and rewards positive change. ll is a model many for-profit companies could learn from. _ . .. .. .. .. .. .. .. .. .. .. .. .. . .

From Concepts to Skills on pages 518-519 provides additional tips for carrying out organizational change.

The Politics of Change No discussion of resistance lo change would be complete without a brief mention of the politics of change. Because change invariably threatens the status quo, it inherently implies pol itical activity.

Politics suggests that the demand for change is more likely to come from outside change agents, employees who are new to the organization (who have less invested in the status quo), or managers who are slightly removed from the main power structure. Managers who have spent a long time with an organiza tion and achieved a senior position in the hierarchy are often major impediments lo change. For them, change can be a very real threat to their status and position, yet they may be expected to implement change to demonstrate that they are not merely caretakers. By acting as change agents, they can convey lo stockholders, suppliers, employees, and customers that they are addressing problems and adapting to a dynamic environment. Of course, as you might guess, when forced lo introduce change, these long-time power holders tend to implement incremental change. Radica l change is often considered too threatening. This explains why boards of directors that recognize the need for rapid and radical change frequen tly turn to outside candidates for new leadership.36 OB in Acti.on- How to Speed Up the Pace of Change provides some tips for keeping up the pace of change.

~ OB~cr10N How to Speed Up the Pace of Change

-+ Compel executives lo confront reality and agree on ground rules for working together.

-+ Limit change initiatives to two or three.

-+ Move ahead quickly and dialogue with those not on board.

-+ Get all employees engaged. Explain how changes are relevant to them personally.

-+ Offer appropriate rewards and incentives.

-+ Celebrate milestones.

-+ Anticipate and defuse post-launch blues and midcourse overconfidence.37

506 Part 5 Reorganizing the Workplace

C, Describe three ways to create a culture for change.

paradox theory The lheo,y that the key paradox in management is lhat there is no final optimal status for an organization.

Creating a Culture for Change Cirque du Soleil is an innovative organization.38 Its employees are engaged and the company

works on reinventing itself continuously. The investment of a Chinese company means that

Cirque will be able to expand to China, giving it a large new audience--0ne that is already

aware of Cirque.

Alma Derricks was hired to be one of Cirque's vice-presidents of sales and marketing shortly

after the organization sold 90 percent of itself to outside investors. She noted the challenges

of keeping ticket sales in Las Vegas while competing with shows by Celine Dion and Britney

Spears. Still, Cirque performances can sell as many as 20 000 tickets in a night. "We have to always make the loudest noise in that environment and make sure that visitors are still aware

that we're around, that we're exciting and that we're vital," Derricks says.

Cirque is investing in new product lines, including getting into the executive education

business. SPARK, one of Cirque's new businesses, can be used as a learning laboratory for

corporate teams (like Adobe and Google) to bring employees on retreat to learn about "trust,

team building, operational excellence and customer service in a very tangible way."

The company introduced a new show, "Volta," in August 2017 that, besides the costumes,

makeup, and characters that Cirque is known for, also includes extreme sports. "I think when

people sat down to think not about how to reinvent Cirque du Soleil but to push the boundaries

and try to do something different, extreme sports just came to the surface," said Johnny Kim,

the show's assistant artistic director.

In summer 2017, Cirque also bought live entertainment company Blue Man Productions.

Daniel Lamarre, president and CEO of Cirque du Soleil, explained the purchase: "We want to

broaden our horizons, develop new forms of entertainment, reach out to new audiences and

expand our own creative capabilities. Today, we are taking a decisive step towards materializing

these ambitions."

Not many companies are this committed to reinventing themselves and expanding their

horizons. What can be done to encourage more innovation in organizations'

We have considered how organizations can adapt to change. But recen tly, some OB scholars have focused on a more proactive approach- how organ izations can embrace change by transforming thei r cultures. In this section we review th ree approaches:

managing paradox, st imulati ng a n i n novative cu l t u re, and creating a learning

organization.

Managing Paradox In a paradox situation, we are required to balance tensions across various courses of acti o n. There is a constan t process of find ing a balancing point, a dynamic equil ibrium,

among sh i fting priorities over ti me. Think of r iding a bicycle: You must maintain for-

ward momentum or you will fall over. From this perspective, there is no such thing as a separate d iscipline of •change man agement • because all management is dealing wi th

constan t change and adap tati on.

The idea of paradox sounds abstract, but more specific concepts have begun to

emerge from a growing body of research.39 Several key paradoxes have been identified.

Learning is a paradox b ecause it requires buil d i ng on the past while rejecti ng i t at th e same time. Organizing is a paradox because it calls for setting direction and leading whi le requiring empowerment and flexibility. Performing is a paradox between crea t- ing organ izatio n-wide goals to concentrate effort and recogn izing the diverse goals of

stakeholders inside and outside the organ izati o n. Finally; belonging is a paradox between establ ishing a sense of co llective identity and acknowledging our desire to be recognized

and accep ted as un iq ue individuals.

Managers can learn a few lessons from p ar adox theo ry,40 which states the key

paradox i n management is that th ere is no final op ti mal status for an organization.41

Chapter 14 Organizational Change 507

The first lesson is that as the environment and members of the organization change, different elements take on more or less importance. For example, sometimes a com- pany needs to acknowledge past success and learn how it worked, while at other limes looking backward will only hinder progress. There is some evidence that managers who think holistically and recognize the importance of balancing paradoxical factors are more effective, especially in generating adaptive and creative behaviour in those they are managing.42

Stimulating a Culture of Innovation How can an organization become more innovative? Although there is no guaranteed formula, s tructu ral, cultural, and human resource characteristics surface again and again when researchers study innovative organizalions.43 Change agents should con- sider introducing these characteristics into their organizations if they want to create an innovative cl imate. Let's s tart by clarifying what we mean by innovation.

Definition of Innovation Change refers to making things different. Innovation, a specialized kind of change, is applied to initiating or improving a product, process, or service- a better solu- tion.44 All innovation involves change, but no t all changes involve new ideas or lead to significan t improvements. Innovations can range from incremental improve- ments, such as tablet computers, to radica l breakthroughs, such as Nissan's electric Leaf car.

Sources of Innovation Structural variables are one potential source of innovation.45 A comprehensive review of the structure-innovation relationship leads to the following condusions:46

• Organic stn,ctures positively influence innovation. Because they are lower in verti- cal differentiation, formalization, and centralization, organic organizations facil itate the flexibi lity, adaptation, and cross-fertilization that make the adop- tion of innovations easier.

• Long tenure in management is associated with innovation. Managerial tenure can provide the legitimacy and knowledge of how to accomplish tasks and obtain desired outcomes through creative methods.

• Innovation is nurtured when there are slac/1 resources. Having an abundance of resources allows an organization to afford to purchase or develop innovations, bear the cost of instituting innovations, and absorb fai lures.

• Interunit communication is high in innoval'ive organizations. 47 Innovative organizations are high users of committees, task forces, cross-functional teams, and other mechanisms that facilitate interaction across departmental lines.

Innovative organizations Lend to have similar cultures. They encourage experimenta- tion. They reward both successes and fai lures. They celebrate mistakes. Unfortunately, in too many organizations, people are rewarded for the absence of failures rather than for the presence of successes. Such cultures extinguish risk-taking and innovation. People will suggest and try new ideas only when they feel such behaviours exact no penalties. Managers in innovative organizations recognize that failures are a natural by-product of venturing into the unknown. W. L. Gore is known for its culture of innovation, as OB in tile Workplace describes.

With in the human resources category, innovative organizations active ly promote the training and development of their members so that they keep current, offer high

innovation A new idea applied lo initiating or improving a product. pro- cess, or service.

508 Part 5 Reorganizing the Workplace

I tttt .

' ~

Change is not always easy for an organization, but for CEO Mike McDerment of Toronto-based Fresh- Books, changes for his very successful business were spurred on by its success. He believes compa-

nies succeed when they make innovation a perpetual process, and not something that is engaged in

out of necessity.

job security so employees don't fear getting fired for making mistakes, and encourage individuals lo become champions of change. These practices should be mirrored for work groups as well. One study of 1059 individuals on over 200 different teams in a Chinese high-tech company found that work systems emphasizing commitment to

W. L. Gore Is a Leader in Innovation

What does it take to be a leader in innovation? An excellent model is W. L. Gore, the $2.6-bill ion-per-year global company best known as the maker of Gore-Tex fabric.48

Gore has developed a reputation as one of the most innovative companies by devel- oping a stream of d iverse products- including guitar strings, vacuum cleaner filters, industrial sealants, and fuel cell components.

What is the secret of Gore's success? Gore continually th inks about innovation. It recently opened The Gore Innovation Center in Santa Clara, California, and has invi ted other organizations lo come and explore Gore's inventions and discuss potential new products to develop. Gore's employees are given access to the innovation centre, filled with materials, so that they can develop their own ideas. There is a strong emphasis on teamwork, and individuals are encouraged to think about ways to make contributions to the company. Gore also believes in focusing on the long term: •Finally, we believe in the long-Lenn view. Our decisions are based on long-term payoff, and we don' t sacrifice our fundamental beliefs at Gore for short-term gain.•

Gore pioneered a fla t, unique lattice-type organizational structure (now termed an open allocation structure) run by employees (associates) working in self-organized project groups. What can other organiza tions do to duplicate Gore's track record for . . 1 1nnovat1on . .................................................................. .

Chapter 14 Organizational Change 509

employees increased creativity in leams.49 These effects were even greater in teams where there was cohesion among co-workers.

Idea Champions and Innovation Once a new idea is developed, idea champions actively and enthusiasti cally promote the idea, build support for il, overcome res istance to it, and ensure that it's imple-

mented.so Champions often have simi lar personal ity characteristics: extremely high

self-confidence, persistence, energy, and a tendency to take r isks. They usually d isplay

traits associated with transformational leadership. They inspire and energize others with their vision of the potential of an innovation and through their strong personal conviction in their mission. Situations can also influence the extent lo which idea

champions are forces for change. For example, passion for change among entrepreneurs is greatest when work roles and the socia l environment encourage them to put their creative identi t ies forward_s, On the fl ip side, work rol es that push creative individuals

to do routine management and administration tasks w ill d iminish both the passion for and implementation of change. Idea champions are good at gaining the commitment

of others, and their jobs should provide considerable decision-making discretion. This

autonomy helps them introduce and implement innovations in organizations when the context is supportive_s2

Creating a Learning Organization Another way an organization can proactively manage change is to make continuous growth part of its cul lure- lo become a learning organization_s3

What Is a Learning Organization? Just as individuals learn, so too do organizations. A learning organization has devel - oped the continuous capaci ty to adapt and change. The D imensions of the Learning Organization Questionnai re (DLOQ) has been adopted and adapted internationally to assess the degree of commitment lo learning organization principl es_s4 Exhib it 14-9

describes what the DLOQ measures.

idea champions Individuals who actively and enthusiastically promote an idea, build support for it, overcome resis1ance to it, and ensure that the idea is implemented.

learning organization An organi- zation 1hat has developed the continu- ous capacily to adapt and change.

EXHIBIT 14-9 The Components of a Learning Organization Measured by the DLOQ Dimension

Continuous learning

Inquiry and dialogue

Team learning

Embedded system

Empowerment

System connection

Strategic leadership

Description

Opportunities for ongoing education and growth are provided; learning is designed into work so that people can learn on the job.

The organizational culture supports questioning, feedback, and experimentation; people gain productive reasoning skills to express their views and the capacity to listen to and inquire into the views of others.

Work is designed to use teams to access different modes of thinking; collaboration is valued by the culture and rewarded; teams are expected to learn by working together.

Necessary systems to share learning are created, maintained, and integrated with work; employ- ees have access to these high- and low-technology systems.

People are involved in setting and implementing a shared vision; responsibility is distributed so that people are motivated to learn what they are held accountable to do.

The organization is linked to its communities; people understand the overall environment and use information to adjust work practices; people are helped to see the effect of their work on the entire organization.

Leadership uses learning strategically for business results; leaders model, champion, and sup- port learning.

Source: Based on V. J. Marsick and K. E. Watkins, "Demonstrating the Value of an Organization's Learning Culture,' Advances in Develop- ing Human Resources 5, no. 2 (2003), pp. 132-151 . doi:10.1177/1523422303005002002.

51 O Part 5 Reorganizing the Workplace

single-loop learning A process of correcting errors using past routines and present policies.

double-loop learning A process of COfrecting errors by modifying lhe organization's objectives, policies, and standard routines.

Most organizations engage in what has been called single-loop learning. When errors are detected, the correction process relies on past routines and present poli- cies. This type of learning has been likened to a thermostat, which, once set at l 7°C, simply turns on and off to keep the room at the set temperature. It does not question \vhether the temperature should be set at l 7°C. In contrast, learning organizations use double-loop learning. They correct errors by modifying the organization's objec- tives, policies, and standard routines. Double-loop learning challenges deeply rooted assumptions and norms with in an organization. It provides opportunities for radically different solutions to problems and dramatic jumps in improvement. To draw on the thermostat analogy, a thermostat using double-loop learning would try to determine whether the correct policy is l 7°C, and whether changes might be necessitated by a change in season.

Exhibit 14-10 summarizes the five basic characteristics of a learning organization. It's one in which people put aside their old ways of th inking, learn to be open with each other, understand how their organization really works, form a plan or vision on which everyone can agree, and then work together to achieve that vision.SS

Proponents of the learning organization envision it as a remedy for three funda- mental problems of traditional organizations: fragmentation, competition, and reac- tiveness.s6 First, frag1nentation based on special ization creates "walls" and "chimneys• that separate different functions into independent and often warring fiefdoms. Second, an overemphasis on competition undermines collaboration. Managers compete to show who is right, who knows more,, or who is more persuasive. Divisions compete \vhen they ought to cooperate and share knowledge. Team leaders compete to show who the best manager is. Third, reactiveness misdirects management's atten tion to solving problems rather than being creative. The problem solver tries to make something go away, while a creator tries to bring something new into being. An emphasis on reactiveness to prob- lems pushes out innovation and continuous improvement and, in its place,, encourages people to constantly run around "putting out fires."

Managing Learning What can managers do to make their firms learning organizations? Here are some suggestions:

• Establish a strategy. Managers need to make their commitment to change, inno- vation, and continuous improvement explicit.

• Redesign the organization's stn1ct11re. The formal structure can be a serious impediment to learning. Flanening the structure,, eliminating or combining

EXHIBIT 14-10 Characteristics of a Learning Organization 1 . The organization has a shared vision that everyone agrees on.

2. People discard their old ways of thinking and the standard routines they use for solv· ing problems or doing their jobs.

3. Members think of all organizational processes, activities, functions. and interactions with the environment as part of a system of interrelationships.

4. People openly communicate with each other (across vertical and horizontal boundar- ies) withou1 fear of criticism or punishment.

5. People suppress their personal self-interest and fragmented departmental interests to work together to achieve the organization's shared vision.

Source: Based on P M. Senge, The Afth Discipline: The Art and Practice of the Learning Organiza- tion (New York: Doubleday, 2006).

Chapter 14 Organizational Change 5 1 1

departments, and increasing the use of cross-functional teams reinforce inter- dependence and reduce boundaries.

• Reshape the organization's culture. To become a learning organization, manag- ers must demonstrate by their actions that taking risks and admilling failures are desirable traits. This means rewarding people who take chances and make mistakes. Managers also need to encourage functional conflict.

• Do people believe change is possible? Remember that cultures vary in terms of beliefs abou t their abil ity to control their environment. In cultures in which people believe that they can dominate their environment, individuals wi ll take a proactive view of change. This, for example, would describe Canada and the United States. In many other countries, such as Iran and Saudi Arabia, people see themselves as subjugated to their environment and thus wi ll tend to take a passive approach toward change.

• If change is possible, how long will it take to bring it about? A culture's time orien- tation can help us answer this question. Societies that focus on the long term, such as Japan, will demonstrate considerable patience while waiting for posi- tive outcomes from change efforts. In societies with a short-term focus, such as Canada and the United States, people expect quick improvements and will seek change programs that promise fast results.

• ls resistance to change grearer in some cultures than in orhers? Resistance to change will be influenced by a society's reliance on tradition. Italians, as an example, focus on the past, whereas Canadians emphasize the present. Italians, there- fore, should generally be more resistant to change efforts than their Canadian counterparts.

• Does culture influence how change efforts will be implemenred? Power distance can help with this issue. In high power-distance cultures, such as Malaysia and Panama, change efforts will tend to be autocratically implemented by top management. In contrast, low power-dis tance cultures value democratic meth- ods. We would predict, therefore, a greater use of participation in countries such as Austria and Denmark.

• Do successful idea champions do Lhings differen!ly in different cu/Lures? The evidence indicates that the answer is yes.57 People in collectivistic cultures, in contrast to individualistic cultures, prefer appeals for cross-functional support for innova- tion efforts; people in high power-distance cultures prefer champions to work closely with those in authority to approve innovative activi ties before work is conducted on them; and the higher the uncerta inty avoidance of a society, the more champions should work within the organization's rules and procedures to develop the innovation. These find ings suggest that effective managers will alter their organization's innovation strategies to reflect cultural values. So, for instance, while idea champions in Russia might succeed by ignoring budget- ary limitations and working around confining procedures, idea champions in Greece, Portugal, Guatemala, and other cultures high in uncerta inty avoidance will be more effective by closely following budgets and procedures. -

5 12 Part 5 Reorganizing the Workplace

LESSONS LEARNED

• Ind ividuals resist change; breaking down that resis- tance is important.

• Change requ ires unfreezing the status quo, moving to a new state, and making the new change permanent.

• Innovative cultures reward both successes and failures so that people are not afraid to make mistakes.

Mylab Management

Summary The need for change has been implied throughout th is text. For instance, think about attitudes, motivation, work teams, communication, leadership, organizational struc- tures, and organizational cultures. Change was an integral part in our discussion of each. If environments were perfectly s tatic, if employees' skills and abilities were always up to date, and if tomorrow were always exactly the same as today, organizational change would have little or no relevance to managers. But the real world is turbulent, requiring organizations and their members to undergo dynamic change if they are to perform at competitive levels. Coping with all these changes can be a source of stress, but with effective management, challenge can enhance engagement and fulfillment, leading to the high performance that, as you have discovered in th is text, is one major goal of the study of organizational behaviour {OB).

SNAPSHOT SUMMARY

Forces for Change • Action Research Creating a Culture for • Opportunities for Change • Appreciative Inquiry Change

• Change Agents • Managing Paradox Resistance to Change • Stimulating a Culture of

Approaches to Managing • Individual Resistance Innovation Change • Organizational Resistance • Creating a Leaming • Lewin's Three-Step Model • Overcoming Resistance to Organization

• Kotter's Eight-Step Plan for Change Implementing Change • The Politics of Change

Study, practise, and explore real business situations with these helpful resources:

• Study Plan: Check your understanding of chapter concepts with self-study quizzes.

• Online Lesson Presentations: Study key chapter topics and work through interactive assessments to test your knowledge and master management concepts.

• Videos: Learn more about the management practices and strategies of real companies.

• Simulations: Practise management decision-making in simulated business environments.

.,. for Review

1. What are the forces for change?

2. What are the similarities and differences among the four main approaches to managing organizational change?

3. What forces act as sources of resistance to change?

4. How can managers create a culture for change?

for Managers

• Consider that, as a manager, you are a change agent in your orga- nization. The decisions you make and your role-modelling behaviour will help shape the organization's

change culture.

• Your management policies and practices will determine the degree to which the organization learns and adapts to changing environmental factors.

• People resist change because change can be stressful. Low to moderate amounts of stress enable many people to perform their jobs better by increasing their work intensity, alertness, and ability to react. Therefore, don't hesitate to introduce change just because stress might be induced.

for You

• Not everyone is comfortable with change, but you should realize that change is a fact of life. It is difficult to avoid and can result in negative consequences when it is

avoided.

• If you need to change something in yourself, be aware of the impor- tance of creating new systems to replace the old. Saying you want to be healthier without specifying that you intend to go to the gym three times a week or eat five servings of fruits and vegetables a day means that change likely will not occur. It's important to specify goals and behaviours as part of

change.

• Consider focusing on positive aspects of change, rather than negative ones. For instance, instead of noting that you did not study hard enough, acknowledge the effort you put into studying and how that helped your per- formance, and then set positive

goals as a result.

0 ICll:I

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514 Part 5 Reorganizing the Workplace

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ORGANIZATIONAL CHANGE IS LIKE SAILING CALM WATERS

POI NT Organizational change is an episodic activity. 58 That is, it

starts at some point, proceeds through a series of steps, and culminates in some outcome that those involved

hope is an improvement over the starting point. It has a

beginning, a middle, and an end.

Lewin's three-step model represents a classic illus-

tration of this perspective. Change is seen as a break

in the organization's equilibrium. The status quo has been disturbed, and change is necessary to establish

a new equilibrium state. The objective of refreezing is to

stabilize the new situation by balancing the driving and

restraining forces.

Some experts have argued that organizational change should be thought of as balancing a system made up

of five interacting variables within the organization-

people, tasks, technology, structure, and strategy. A

change in any one variable has repercussions on one or

more of the others. This perspective is episodic in that

it treats organizational change as essentially an effort to sustain an equilibrium. A change in one variable begins

a chain of events that, if properly managed, requires

adjustments in the other variables to achieve a new state

of equilibrium.

Another way to conceptualize the episodic view of change is to think of managing change as analogous to

captaining a ship. The organization is like a large ship

travelling across the calm Mediterranean Sea to a local

port. The ship's captain has made this exact trip hun-

dreds of times before with the same crew. Every once

in a while, however, a storm will appear, and the crew has to respond. The captain will make the appropriate

adjustments-that is, implement changes-and, hav-

ing manoeuvred through the storm, will return to calm

waters. Like this ship's voyage, managing an organiza-

tion should be seen as a journey with a beginning and an

end, and implementing change as a response to a break in the status quo that is needed only occasionally.

COUNTERPOINT The episodic approach for handling organizational

change has become obsolete. Developed in the 1950s and 1960s, it reflects the environment of those times

treating change as the occasional disturbance in an

otherwise peaceful world. However, it bears little resem-

blance to today's environment of constant and chaotic

change. If you want to understand what it's like to manage

change in today's organizations, think of it as equivalent

to permanent whitewater rafting. The organization is not

a large ship, but more akin to a 40-foot raft. Rather than

sailing a calm sea, this raft must traverse a raging river

made up of an uninterrupted flow of whitewater rapids.

To make things worse, the raft is manned by 10 people who have never worked together or travelled the river

before, much of the trip is in the dark, the river is dotted

with unexpected turns and obstacles, the exact destina-

tion of the raft is not clear, and at irregular intervals the

raft needs to pull to shore, where some new crew mem- bers are added and others leave. Change is a natural

state, and managing it is a continual process. That is,

managers never get the luxury of escaping the white-

water rapids.

The stability and predictability characterized by the

episodic perspective no longer captures the world we live in. Disruptions in the status quo are not occasional,

temporary, and followed by a return to an equilibrium

state. There is, in fact, no equilibrium state. Managers

today face constant change, bordering on chaos. They

are being forced to play a game they have never played before, governed by rules that are created as the game

progresses.

Chapter 14 Organizat ional Change 5 15

BREAKOUT GROUP EXERCISES

Fenn small groups to discuss the following topics, as assigned by your instructor:

1. Identify a local company that you think needs to undergo change. What factors suggest that change is necessary?

2. Have you ever tried to change the behaviour of someone you worked with (for instance, someone in one of your project groups)? How effective were you in getting change to occur? How would you explain this?

3. Identify a recent change that your college or university introduced, and its effects on the students. Did the students accept the change or fight it? How would you explain this?

EXPERIENTIAL EXERCISE

Strategizing Change

The Situation TutorMe is a midsize company that employs 45 former teachers as tutors in public and private schools. The tutors work

in the company's branches and corporate headquarters, and at home via phone and Internet. 59 The firm employs a

support staff of 15. TutorMe used to be the only such company in the area, but two new tutoring chains recently opened

branches nearby. Online tutoring finns have added competition as well.

TutorMe is beginning to struggle because of this increased competition. Its organizational culture could best be

described as "lackadaisical" and its business practices as "loose." Although it provides a meaningful service to students,

many of its tutors use their own methods instead of following the TutorMe manuals. Tutor pay is low and benefits are

near zero. However, the tutors are skilled teachers who appreciate the opportunity to use their expertise in a flexible

work situation, and turnover is low.

TutorMe's facilities look "tired" and are usually located in mostly abandoned strip malls far from well-travelled roads.

The corporate headquarters is a bit nicer and in a more visible location. However, the managers often don't know what

the tutors are doing, and billing practices are chaotic. There is no HR department, so the business staff handles both

payments and employee issues, mostly by c reating further problems that upper management must settle. The pay

for the business staff is mid -range for the area with standard benefits, but high staff turnover has been an accepted

part of TutorMe's business.

Upper management understands the company needs to change to survive, so its executives hired consultants

to diagnose what TutorMe needs. The consultants believe the company should (1) eliminate some of its less-used

branches, (2) relocate other branches to more visible locations, (3) train tutors with the TutorMe manuals and insist

on standardization of teaching practices, (4) overhaul the organizat ional culture to reflect a commitment to tutor-

ing excellence, and (5) train and set expectations for the business staff to raise performance levels and tighten

accountability.

The consultants have warned T utorMe management that recent studies indicate only 30 to 43 percent of organiza-

tions achieve their goals for change initiatives. They have outlined the following specific obstacles and offered to help

TutorMe be successful in its transfonnation:

1. Lack of adoption and commitment from top management

2. Employee resistance

3. Manager resistance

4. Insufficient communication

5. Budget overages and project delays

6. Employees and managers who ignore the new policies and procedures

5 16 Part 5 Reorganizing the Workplace

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The Procedure Break into groups of three to four members. Each group will act as the consultants to guide T utorMe through the change

process. Your group will need to come to a consensus, in writing, for each of the following assignments.

1. Gather all you know about TutorMe's current business practices. Write down the reasons tutors stay while staff turnover is high. Decide what is currently working for TutorMe. What is not working and needed to change even before competition came in?

2. Based on what you determine about TutorMe's business practices, do you agree or disagree with each of the consultants' five recommendations? Why or why not?

3. Consider the six obstacles the consultants identified, the five recommendations, and your answer to question 1 . Which of the obstacles do you think will present problems for achieving the five recommendations? How? Make a list.

4. From your list in question 3, write down your targeted, informed recommendations for overcoming the obstacles. Also consider what further information you would like from the company.

5. Bring the class together and discuss your recommendations from question 4.

ETHICAL DILEMMA

Changes at the Television Station

A local television station had been experiencing a ratings

decline for several years.60 In 2014, the station switched

some of its programming. That has explained some of the

ratings decline. However, in recent months, the ratings

have continued to slide. Eventually, the station manager,

Lucien Stone, decided he had to make a change to the

local newscast.

After meeting with the programming manager, Stone

called a meeting of the employees and announced his

intention to "spice things up" during the 5 p.m. and

10 p.m. local news. The 30-minute broadcasts would

still include the traditional "top stories," "sports," and

"weather" segments. However, on slow news days, more

attention-getting material would be used. Stone also

indicated some programming decisions would probably

be revisited. "The days of Uttle House on the Prairie are

over," he said.

Madison Devereaux, 29, had been the chief meteorolo-

gist since 2012. After receiving a degree in meteorology,

she joined the station and quickly worked her way up the

ranks, impressing viewers and management alike with her

extensive knowledge and articulate, professional, mistake-

free delivery.

Although she was religious, Devereaux was not one

to express her religious beliefs in the newsroom. Most of

those at the station were not even aware that she closely

practised a religion.

Devereaux was troubled by the announced changes to

the programming but did not speak up at the time. One

Monday during a pre-production meeting, she learned

that on Thursday of that week, one of the reporters, Sam

Berkshow, would present a segment called "Dancing

around the Economy,• which would focus on how local

strip clubs were doing well despite the sluggish economy.

Devereaux did not think it was appropriate to air the

segment during the 5 p .m. newscast and asked both

her producer and Stone to reconsider the piece, or at

least air it in the 10 p.m. time slot. When they refused,

she asked whether she could take the day off when the

segment aired. Stone again refused. This was "sweeps

week" (when ratings are calculated); Stone wanted to air

the story, and Devereaux's contract prohibited her from

taking time off during sweeps week.

When Devereaux did not show up for work that Thurs-

day, the station fired her, arguing that she had breached

her contract.

For her part, Devereaux said, "I'm not angry with the

station, but I am sorry about the changes that have taken

place."

Quest.ions

1. Do you think either party behaved unethically in this case? If so, why?

2. How could Devereaux have handled the situa- tion differently while still maintaining her personal integrity?

3. Drawing on Kotter's eight-step plan for implement- ing change, how might the station have handled its planned change differently?

Chapter 14 Organizational Change 5 17

CASE INCID ENT S

Sprucing Up Walmart For more than half a century, Walmart has prided itself on providing value to customers by being a low-price

leader.61 But the consumer mindset is changing. Now

"value" also means convenience, ease of finding what

you want, and the ability to get exactly what you want

When you want it. Nationwide dollar-store chains often have lower prices than Walmart, so that point of com-

petitive advantage is fading. Thanks to Amazon.com and

other online retailers, consumers can shop from home

Whenever they like, compare prices, and know immedi·

ately What is available.

Contrast this with the experience many Walmart shoppers previously had when they entered a store -

low inventory, disorganized aisles, unhelpful staff, and

an overall depressing atmosphere. The company 's online

presence was about the same. The site was difficult to

navigate and attempts to search for products were frus- trating at best and more often fruitless.

Named Walmart's CEO in 2014, Doug McMillan set

out to change this. "What people think about the com-

pany is important," he noted. At the moment , people

were not thinking about value and low prices when they

thought about Walmart. McMillan enacted a number of

changes. First, since the company had earned a reputa-

tion of treating its store employees poorly-low wages,

few benefits- while profits were in the billions of dollars,

Walmart announced it would increase its minimum wage.

Second, the company asked for and paid more atten-

tion to employee feedback. Recurring issues included the

dress code, store music, and even store temperatures.

So clothing rules were relaxed, more variety in music was

introduced, and thermostats were adjusted. The company

hopes improving employee morale will translate into a bet-

ter experience for customers, thereby changing some of

the negative images.

Walmart 's web presence was another target for big

changes. With Amazon as the store's biggest competitor,

McMillan wanted to offer customers more items, pickup

options, and ways to meet their needs and demands-like

an online grocery-ordering service. This means a new

way of thinking about marketing and inventory across

the board. McMillan was able to see how consumers have

changed not only What they want, but also the way they

want it - whether from the hands of happy employees or

with the simple click of a button. The question remains:

Will his actions be enough to change the way consumers

see Walmart?

Quest.ions

1. What key factors do you think prompted Walmart to change? Do they exemplify the change pressures discussed in the chapter? Why or why not?

2. What effects from Walmart's changes do you predict?

3. Describe how McMillan acted as a change agent in this situation.

When Companies Fail to Change The Trinitron TY, transistor radio, Walkman, and VCR are the stuff of time capsules nowadays, but not long ago

they were cutting -edge technology.62 Japan was at the

pinnacle of the home consumer electronics industry from

the 1970s to the 1990s, introducing new innovations to

the world each year. Now those same Japanese firms are

at the back of the pack and struggling to stay in the game.

Japanese electronics production has fallen by more than

41 percent, and Japan's global market share of electron-

ics goods and services has decreased by more than half

since 2000. Sony, for example, did not earn any profits

between 2008 and 2012, and then was falling behind

again in 2014. What happened?

The simple answer is failure to innovate. While firms

outside Japan pioneered digital technology and conquered

the Internet, Japanese firms stuck to semiconductors and

hardware. But the deeper issue is the refusal of Japa-

nese managers to adapt to the global environment and

to change their organizations accordingly. For instance,

Sony mastered the technology needed for a digital music

player years before Apple introduced the iPod in 2001 , but

its engineers resisted the change. Sony's divisions would

518 Part 5 Reorganizing the Workplace

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not cooperate with one another fast enough to compete in

this market or in the new market for flat -screen 1Vs. Even

now, Sony has not managed to change its organization to

reflect current global thinking in the industry. For instance,

they and other Japanese firms make a larger number of

products than most of their global competitors. Former

Sony executive Yoshiaki Sakito said, "Sony makes too

many models, and for none of them can they say, 'This

contains our best, most cutting-edge technology.' Apple,

on the other hand, makes one amazing phone in just two

colors and says, 'This is the one.'" Sony was attempting

to adjust its behaviour by fall 2014, realizing that it had

too many models of smartphones. The plan is to focus

on premium phones.

keep costs down and prices competitive, but that is no

longer the case. One complicating factor is that Japan

is an ancient country of many traditions, with a low birth

rate and an aging population, so there will be an increas-

ing shortage of workers. The country's culture will make it

even more difficult to realign to globalization. It now must

change to foster innovation, which may involve a cultural

as much as an organizational transformation.

Questions

1. What made the Japanese electronics industry initially successful?

2. Why is the Japanese electronics industry no longer a success story? For Japanese electronics companies to survive, they

must change. They were once able to structure their

organizat ions around abundant , inexpensive labour to 3. What types of organizational changes would you

advise Japanese electronics managers to consider?

Carrying Out Organizational Change An After Action Review is a non-

hierarchical team debriefing pro-

cess that helps participants in and

those responsible for a project

understand what went well, what

went wrong, and how perfor-

mance can be improved.63 Seven

disciplines embedded in the After

Action Review can help create

effective change:

1. Build an intricate understanding of the business. Organizational members need to have the big picture revealed to them so they know why change is needed and what is happening in the industry. Let organizational members know what is expected of them as the change proceeds.

2. Encourage uncompromising straight talk. Communication cannot be based on hierarchy, but must allow everyone to contribute freely to

the discussion.

3. Manage from the future. Rather than setting goals that are directed toward a specific future point in time (and thus encouraging everyone to stop when the goal is achieved), manage from the perspective of always looking toward the future and future needs.

4. Harness setbacks. When things do not go as planned, and there are setbacks, it's natural to blame yourself, others, or bad luck. Instead, teach everyone to view setbacks as learning opportunities and oppor- tunities for improvement.

5. Promote inventive accountability. While employees know what the spe- cific targets and goals are, they should also be encouraged in the change process to be inventive and take initiative when new opportunities arise.

6. Understand the quid pro quo. When organizations undergo change processes, employees are put under a lot of stress and strain. Orga- nizations must ensure that employees are rewarded for their efforts. To build appropriate commitment , organizations must develop four levels of incentives:

a. Reward and recognition for effort

b. Training and skill development that will make the employee marketable

c. Meaningful work that provides intrinsic satisfaction

d. Communication about where the organization is going and some say in the process for employees

7. Create relentless discomfort with the status quo. People are more willing to change when the current situation looks less attractive than the new situation.

These points indicate that effective change is a comprehensive process,

requiring a lot of commitment from both the organization's leaders and its

members.

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

You are the nursing supervisor at a local hospital that employs both emer-

gency room and floor nurses. Each of these teams of nurses tends to

work almost exclusively with others doing the same job. In your profes-

sional reading, you have come across the concept of cross-training nurs-

ing teams and giving them more varied responsibilities, which in turn has

been shown to improve patient care while lowering costs. You call the two

team leaders, Sue and Scott, into your office to explain that you want the

nursing teams to move to this approach. To your surprise, they are both

opposed to the idea. Sue says she and the other emergency room (ER)

nurses feel they are needed in the ER, where they fill the most vital role in

the hospital. They work special hours when needed, do whatever tasks

are required, and often work in difficult and stressful circumstances. They

think the floor nurses have relatively easy jobs for the pay they receive.

Scott, the leader of the floor nurse team, tells you that his group believes

the ER nurses lack the special training and extra experience that the floor

nurses bring to the hospital. The floor nurses claim they have the heavi-

est responsibilities and do the most exacting work. Because they have

ongoing contact with patients and families, they believe they should not

be called away from vital floor duties to help the ER nurses complete

their tasks. What should you do about your idea to introduce more cross-

training for the nursing teams?

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

1. Think about a change (major and minor) that you have dealt with over the last year. Perhaps the change involved other people, and per- haps it was personal. Did you resist the change? Did others resist the change? How did you overcome your resistance or the resistance of others to the change?

2. Interview a manager at three different organizations about a change he or she implemented. What was the manager's experience in imple- menting the change? How did the manager manage resistance to the

change?

Chapter 14 Organizational Change 519

• ••••••••••••••••••••

Practising Skills

Reinforcing Skills

• ••••••

ADDITIONAL CASES

The Additional Cases present key concepts examined in the text. The following table indicates the chapters that apply to the major

topic areas addressed in each case.

Cases Chapters

1 2 3 4 5 6 7 8 9 10 11 12 13 14

Case 1 : The Personality Problem ./ ./ ./

Case 2: The Path to Fraud ./ ./

Case 3: Auditing, Attitudes, and Absenteeism ./ ./ ./ ./ ./ ./ ./

Case 4: Bad Faith Bargaining? Government Power and ./ ./ ./ Negotiations with the Public Service

Case 5: Gender-Based Harassment among the Royal ./ ./ ./ ./ Canadian Mounted Police

Case 6: Disability Accommodations and Promotions at Bunco ./ ./

Case 7: Promotion from Within ./ ./ ./ ./ ./

Case 8: Repairing Jobs That Fail to Satisfy ./ ./ ./

Case 9 : Virtual Organizations ./ ./ ./ ./

Case 10: Trouble at City Zoo ./ ./ ./ ./ ./ ./

Case 1: The Personality Problem Learning Goals In this case, you will have an opportunity to assess the positive

and negative traits associated w ith a personality type that is

often encountered in highly competitive, performance-oriented

settings. You should consider the role of organizational culture

in supporting and reinforcing behaviours associated w ith this

personality type. Use that insight to suggest strategies that

could help maximize the benefits of this personality type while

minimizing its liabilities.

Major Topic Areas • Personality (Chapter 2)

• Organizational culture (Chapter 10)

• Work attitudes (Chapter 3)

The Scenario Jasmine Patel, director of Human Resources at Vertical Horizon,

sits at her desk thinking about what to do next. 1 She is wonder-

ing how to handle the disruptive behaviour of a high-performing

sales representative, Rhett Stark.

Vertical Horizon is a software company in the Kitchener-

Waterloo high-tech corrido r. It started out developing

programming tools that help large teams of software devel-

opers work together effectively. Now it was moving into other

areas such as web content management. Since the company

was in the midst of adding to its product line, it was very

important t hat the sales representatives support the transi-

tion. If sales of the new product line were too low, the entire

company could fold.

The sales team consists of 12 outside (field) sales repre-

sentatives and 6 inside representatives who provide support

to the outside representatives. Each inside representative is

responsible for generating leads and otherwise supporting the

two outside sales representatives assigned to them. In addition,

the sales team includes a sales manager who can be consulted

on a daily basis for advice and a vice-president (VP) of Sales

who is responsible for strategic initiatives.

Most of the sales representatives, as well as the sales man-

ager and the VP of Sales, are relatively new to the organiza-

tion. As a result, they often consult with Rhett for advice abou1

the company's products, its customers, and sales strategies.

Rhett is an outside sales representative who has been with

the company for over eight years, a long time in the software

world. His natural charisma combined with his strong product

knowledge and excellent customer service has helped him

exceed his sales quota quarter after quarter. Rhett is charm-

ing, bold, and highly self-confident. He is a gifted leader who

has a natural ability to draw people to him. People feel special

around Rhett. One co-worker says, "When he talks to you, he

makes you feel like you are the most important and interest -

ing person in the world ." Although Rhett's personality has

helped him become a successful sales representative, it has

its downside.

Rhett is the ringleader of a group of sales representatives

who often work late and then go out partying together. This

behaviour has been supported by the VP of Sales, who feels

that the time spent bonding after work makes for a strong team.

The nights the sales representatives have spent together club-

bing and bar hopping has created cohesion within the work

group , but it has also had some negat ive effects. Jasmine

overheard two male members of the sales team discussing

marital problems that had arisen as a result of their late nights

out. "What bothered me," one said to the other, "is that when I

told Rhett that my wife was upset about it, he just laughed and

walked away. I know it's my own responsibility, but you would

think he would be more sympathetic.•

A high-performing sales representative named Malcolm

spoke to Jasmine privately about Rhett and made a similar

point: "It's pretty clear that Rhett has a lot of informal power

around here," he said. "Everyone, even management, listens to

him and does what he says. I'm worried because I'm not part

of his 'pack.' I don' t drink or go out with Rhett's group. Rhett

makes fun of me behind my back. He insults me in front of oth-

ers, and no one dares say anything about it. Given his informal

power in this department , how can I ever expect a fair chance

at a promotion?"

Worrisome, too, is Rhett's behaviour w ith his inside sales

representat ive, Aisha. Aisha recently asked to meet with

Jasmine to discuss a few "issues.• She told Jasmine: "Rhett

Case 2: The Path to Fraud Learning Goals In this case, you will have an opportunity to evaluate a decision-

making process that ultimately led to an employee engaging in

unethical and illegal behaviour. Consider which factors contrib-

uted to Julie's decision to engage in fraud. How did organiza-

tional variables combine with external pressures to influence

her decision? Use that insight to make recommendations about

what the insurance company could, and should, do to prevent similar situations from unfolding in the future.

Major Topic Areas • Decision making and ethics (Chapter 12)

• Work values and attitudes (Chapter 3)

• Corporate social responsibility (Chapter 12)

Additional Cases 521

delegates work to me and then interferes by micro-managing

it. When a project goes well, he takes the credit for it; when a

project goes badly, he blames me publicly. I'm often asked to

go beyond my duties to help Rhett; he even thinks it 's okay

to call me late at night and on weekends. If I don't do what

Rhett asks, he says I'm being d ifficult and questioning his

authority. Most of the time, I feel like I'm here only to meet

his needs and not those of the other sales representat ive

I'm assigned to. The thing is, Rhett's in charge of my perfor-

mance review."

Jasmine has no authority to tell Rhett how to live his life

outside the workplace, but it's clear that he is negatively affect -

ing other employees in the department. He also appears to be

completely unconcerned about his impact on other employ-

ees. Jasmine suspects that Rhett is a narcissist, and perhaps

Machiavellian too. But he is the company's best sales represen-

tative by far. How can she manage this difficult personality and

help create a healthier work environment?

Discussion Questions 1. Do you think that Rhett is Machiavellian and a narc issist?

Why or why not?

2. Assuming that Rhett is Machiavellian and a narcissist, what is the most effective way to minimize the negative effect he can have on other employees?

3. How has the organization's culture contributed to the toxic subculture that seems to be developing in the sales department? What can management do to foster an organizational culture that is supportive of all employees, positive, and high performing?

The Scenario Julie Smith trembled uncontrollably as the judge ordered her to

stand up for sentencing .2 It was really happening. She would

be sent to prison. All this time, no matter how many warnings

she got from her lawyer, a part of her had never really believed that it would come to this. • A four-month sentence to be served

in a minimum security facility followed by two years of proba-

tion," thundered the judge, "and you will pay full restitution."

Julie fell back into her chair and began to cry. How would her

six-year-old son cope while she was imprisoned? She had not

even told anyone in her family what was happening because she was so embarrassed and humiliated . How had she ended

up here?

In mid-2007, Julie started working as an accounts pay-

able clerk for a large insurance company. Her job consisted

primarily of processing invoices but as a member of the wider

522 Additional Cases

finance department she had many opportunities to observe

and learn the company's audit procedures. Julie viewed the

work in accounts payable as repetitive and tedious, and she

was aware that she did not have the discret ion or author-

ity to make her own decisions. Everything at this company

was done VERY strictly by the book. Despite these limita-

tions, however, Julie enjoyed her job and the company of her

co-workers and colleagues, and she felt that her employer

treated her well.

In early 2008, Julie made a lateral move to the department

that administered corporate commercial accounts. large cor-

porations bought insurance policies as protection from lawsuits

and were required to pay a flat rate per term regardless of the

number of c laims made against them. Julie oversaw more

than 500 corporate policies. When one of the corporate clients

experienced a loss, Julie would process the claims for legal

fees, compensation, and related incidentals. Examples of com-

mon losses included compensation paid out due to slips and

falls, safety violations, and other lawsuits. Julie processed an

average of 13 to 15 claims per week. When the compensation

was less than $10 000, Julie simply created, signed, and issued

the cheque herself. Claims over $10 000 required a second

signature, but she could ask anybody in the office to sign, so

this was rarely a problem.

After several months on the job, Julie noticed that the corpo-

rate clients did not receive reports about claims made against

their accounts. Since corporate clients paid a flat fee regardless

of how many cases were processed, the corporate clients had

little incentive to actively monitor claims activities.

Although she enjoyed her job and her co-workers, Julie, a

single mother with a toddler, struggled to make ends meet.

She earned $24 000 per year. Her expenses had exceeded

her income ever since her son was born. Daycare was so

expensive, but she had no choice but to use it if she was plan-

ning to work full time. Worse, the small savings account that

she inherited upon her mother's death a few years ago was

nearly empty. She had only a high school education, and she

had been very lucky to land the job at the insurance company

in the first place. Her options for increasing her income were

limited, and her son's father had never been involved in par-

enting or provided any type of financial support. In fact, Julie

doubted she would be able to locate him, even if she tried .

As she worried and considered her limited alternatives, Julie

thought about her work tasks again, remembered that her

company's internal audit process examined corporate com-

mercial accounts only every six years, and came up with an

idea for some relief.

Julie's son was enrolled in a private, at-home, daycare ser-

vice. She was friends with Marie, the person who operated the

home daycare, and they had shared a lot of laughs together.

Julie usually paid for daycare on a bi-weekly basis using a

personal cheque. Until the day she didn't. Three weeks after

her initial flash of "inspiration," a different kind of cheque was

handed over to Marie, one with the insurance company's name

featured as payer instead of Julie's name. "That's weird," com-

mented Marie, "what is up with this?" "Oh, I was embarrassed

to tell you," said Julie, looking down at her feet. "I'm having

some financial difficulties and my employer has decided to

help me out, so the cheques for daycare will come from the

company from now on." Although this sounded a little strange

to Marie, she figured that the issue was personal, shrugged,

and accepted Julie's cheque.

Julie left the daycare feeling euphoric. Her idea had actu -

ally worked! Three weeks previously, she had created a "loss"

in the system with Marie's name ascribed to it. Julie selected

one of the very large corporate commercial accounts against

which to submit the claim, a company that was seldom, if

ever, reviewed. She was well aware of the most common

types of losses experienced, and so it was not difficult to

come up with a scenario and dollar value that would not

attract attention. She simply entered Marie's name as the

claimant, approved the claim, and in due course a cheque

was issued.

The plan had worked so well the first time that Julie exe-

cuted it again. And again. And again. A little over eight months

passed and, in that time, she created eight different claims

under Marie's name. She added it up one day and realized

that she had netted $12 000 from her "side activities." Julie

reflected on how easy it had all been. She worried that she

would be tempted to do it over and over again, and not just for

daycare expenses. This was not the person she wanted to be.

She decided that the only solution was to remove herself from

temptation. She asked for, and received, a transfer to another

department.

While Julie was celebrating her transfer and the fact that

she would no longer be tempted, a problem emerged. The

cheque for the last claim she had invented came back to her,

because she had not filled in a field that coded the claim for the

accounting system. Normally she could have fixed the over-

sight in a few seconds, but because she had been transferred,

she no longer had access to the system. The person who

replaced Julie asked her for a copy of the paperwork to back

up the claim before filling in the missing information. Julie was

unable to provide any. Not long after this incident, Julie arrived

at work one morning to find herself called into a private room.

Management informed her that they knew about the fraudulent

claims, fired her, and advised her to get a lawyer. One month

later, a police officer came to her home, and she was formally

charged with fraud over $5000.

Now here she was, in court, being sentenced. She feared

that her little boy would not understand why she would not

return home that night. She had not told anybody about what

was happening, in denial that she might actually go to jail. She

felt numb all over and just prayed that her new boyfriend would

be willing to take care of her son until she was released. If not,

her son would become a ward of the state and be sent to a

foster home; a thought that once again reduced Julie to despair.

All she had ever wanted was to be able to look after her son

properly. How had it come to this?

Discussion Questions 1. What does this case teach us about ethical decision-

making behaviours?

Additional Cases 523

2 . Did the workplace environment or corporate culture contribute to Julie's ability to rationalize her fraudulent activities? Did these factors contribute to her decision to stop committing fraud? Based on your understanding of how work attitudes develop, explain how organizational factors may have contributed to her activities and subse- quent decisions.

3. What can employers do to create an environment that encourages ethical behaviour?

Case 3: Auditing, Attitudes, and Absenteeism Learning Goals In this case, you will have an opportunity to evaluate whether

an ethical lapse in an employee's behaviour should be con-

sidered as an isolated incident or a symptom of broader prob-

lems within the corporate culture. You will also be asked to

consider which factors contributed to the decision by Peter's

direct reports to simply go along with his directions. Other

issues to consider include the following: How might factors

such as poor socialization or communication have contributed

to the behaviour of Peter's direct reports? What would theories

of motivation suggest? Should the organization have used a

more formalized structure? Use your own insight to make rec-

ommendations about what the organization could, and should,

do to prevent similar situations from developing in the future.

Major Topic Areas • Work attitudes (Chapter 3)

• Organizational culture and socialization (Chapter 1 0)

• Power (Chapter 8)

• Group dynamics (Chapter 6)

• Motivation (Chapters 4 and 5)

• Ethical decision-making (Chapter 12)

• Organizational structure (Chapter 13)

The Scenario "You've got to be kidding," said Sanjay, shaking his head, "is he

there right now?" "Yes," said Bianca, "if we drive over there you

can see for yourself." 'W hat the heck," exclaimed Sanjay, "let's

go."3 The pair left their office tower and drove the 10-minute

distance to Peter 's house. Bianca was right. Peter was sup-

posed to be out at a client site overseeing an audit, but his

car was parked in his driveway, and he could be seen clearly

through his large, living room window. "Well, this is awkward,"

sighed Sanjay. "What do we do now?"

Sanjay and Bianca were senior managers at one of Canada's

top four professional audit firms. Their team was responsible for

performing audits for a broad range of corporate clients. The

firm had a very traditional and formalized structure, like the other

large players in their industry. Recent graduates were hired as

•students in accounts," during which time they were expected

to complete their professional exams and work toward their

chartered accountant (CA) designation. Upon passing their CA

exams, they could compete to become junior auditors in the

firm. If they chose to stay with the firm, they could then expect

to progress to a supervisory role and finally, in six to seven

years, become a senior manager. The best and brightest audi·

tors stood to become M ure partners in the firm. Many gradu-

ates, however, simply worked at the company long enough to

achieve their CA designation, which requires a minimum of two

years' experience working in an auditing firm. The culture this

process created was coined •up or out,• since that is exactly

what happened. Employees moved up (i.e., they were pro-

moted) or out o.e., left the company). There was no shame in

leaving, though; in fact, it was anticipated that most employees

would remain only long enough to get their designations and

then move on.

Peter had joined the firm a few years ago and had pro-

gressed to a supervisory role. Recently, Peter had come to the

conclusion that the path to partner was not right for him, and

he began applying for jobs with other companies. But his deci-

sion to apply for jobs elsewhere created a dilemma. He was

not comfortable telling his employer he was looking for work

elsewhere, and he was also concerned that if his employer

knew that he was contemplating leaving the firm, his current

524 Additional Cases

assignments and standing would be negatively affected. To

make matters worse, Peter had no idea how long it would take

to find a new job, and he also had no idea how to manage

organizing time off to participate in interviews.

Peter reviewed his work tasks and responsibilities and

came up w ith what he perceived to be a viable solution to

his dilemma. He began telling the people under his supervi-

sion that their current client did not require their presence on

Fridays, and they should work at home instead. Peter encour-

aged them to use the time to work on things like file reviews or

even just to relax. The members of Peter 's team did not ques-

tion his instructions, even though it was highly unusual to be

allowed, and even encouraged, to work from home. Even full

partners seldom worked from home. The clients themselves

d id not question the team's absence on Fridays either (one

suspects that the average worker is not terribly disappointed

when he or she discovers that the audit team is absent for a

day). This arrangement allowed Peter to tell his manager that

he was conducting on-site audits on Fridays, when he was

actually scheduling and attending a series of job interviews

on those days.

The situation continued for a couple of months before a

few of Peter's direct reports became uncomfortable enough

to say something. They approached Bianca, who drove past

Peter's house the following Friday to see for herself whether or

not he was there. When she confirmed that he was at home,

instead of •on-site," she returned to the office to d iscuss

the situation with Sanjay. Now here the two of them were,

standing on Peter's front step, wondering how to handle the

situation. Sanjay knocked on the door. Peter answered, but

as soon as he saw Sanjay and Bianca, his face turned red.

They asked him what was going on and were stunned when

Peter began to cry.

After Peter regained his composure, the three of them

returned to the office to d iscuss the situation. Sanjay and

Bianca learned that the reason for the absences on Fridays

was so that Peter could attend job interviews. Once Sanjay

and Bianca heard all of the details, they asked Peter to step out

of the office while they discussed the situation in more detail.

"The irony," remarked Sanjay, once they were alone, "is that

if Peter had just told us what was happening, we would have

been happy to give him time off to go to interviews. We recently

completed his performance evaluation, and although he is a

solid accountant, he just isn't partner material. He doesn't have

a future here anyway. It's not that he is a bad auditor, but others

are better. I would have been happy to help him find a good

placement." "That's all well and good," said Bianca, "but it isn' t

even Peter I'm worried about. He supervised several different

teams over the couple of months he was doing this. Why did it

take so long for any of them to let us know what he was doing?

I know the work still got done and the c lients were satisfied,

and I know that everyone likes to be friendly around here and

hang out together, but these people are auditors for goodness

sake! I would have expected better. Do you think this might be

a symptom of a bigger problem with our corporate culture? And

if so, what should we do about it?"

Discussion Questions 1. Why do you think Peter's direct reports kept quiet about

the "work from home" directive for as long as they did? Why did some of them eventually decide to inform

management?

2 . Do you think this situation would have happened if the organization had a more formal structure in place? Why or why not?

3. Do you think the lapse in Peter's ethical behaviour indi- cates a broader problem with the firm's corporate cul- ture? Why or why not? If yes, what should management do now to try to change its corporate culture?

Case 4: Bad Faith Bargaining? Government Power and Negotiations with the Public Service Learning Goals In this case, you will have an opportunity to assess the impact

of federal government policy on labour relations in the pub·

lie sector. You will be asked to consider what strategies and

tactics may contribute to the escalation of conflict and how

the situation could be handled moving forward to lessen the

intensity and emotional nature of the conflict. You will also be

asked to consider issues of power and ethics. Do you believe

the federal government is acting ethically in the case? What

about the unions?

Major Topic Areas • Power and politics (Chapter 8)

• Conflict and negotiation (Chapter 9)

• Ethics (Chapter 12)

The Scenario Bargaining between unions and management in the pub-

lic sector can be not only newsworthy b ut also highly

controversial. 4

In 1967, the Canadian government gave federal public

servants collective bargaining rights. Those rights gave public-

service unions the right to choose Whether to settle contract

disputes by arbitration or by strike.

Treasury Board President Tony Clement, who was respon-

sible for federal labour issues, changed those rights in 2013

when he introduced sweeping reforms to the Public Service

Labour Relations Act. The new rules for collective bargaining

seem to favour the government.

In the federal public service, unions were once able to

decide whether they wanted to settle their d isputes by arbi-

tration (a process in which an arbit rator imposes a decision

on the parties in a dispute) or conciliation (a process in

which a settlement is recommended and is backed by the

right to strike). The new rules give the federal government,

rather than the federal unions, the power to decide whether

individual disputes are solved by arbitration or conc iliation.

Federal public service unions are concerned that the govern-

ment can force them into conciliation (and a possible strike),

even if t heir members believe arb itrat ion would reso lve a

d ispute. Ultimately, the new rules for collective bargaining

have decreased the power of unions that represent federal

public servants and make it more likely that affected union

members will agree to concessions if they consider strike

action undesirable.

The federal government has also placed limits on the fac-

to rs that arbitrato rs and conc iliation board s can consider

when they provide decisions on disputes for federal unions.

They are required to focus on two factors: the federal govern-

ment's "fiscal c ircumstances relative to its budgetary polic ies"

and the ability to recruit and retain employees. The labour

board had previously concluded that those two preconditions

favoured the federal government to an excessive deg ree;

despite this conclusion, Clement made the preconditions law

a few months later.

In 2014, Clement announced that the federal government

would revamp the public service's sick leave policy.5 Under

the new collective bargaining rules, fed eral public service

unions are seriously limited in resolving any disputes over

sick leave.

Under the federal government 's existing sick leave policy,

federal public servants receive 15 days of paid sick leave per

year. Unused days can be carried over to subsequent years

(a process known as "banking") and then be used as needed.

In some cases, emp loyees may end up with many weeks

Additional Cases 525

"banked." This can help them get through a prolonged illness

or major injuries, since it takes 65 days to become eligible for

long-term disability payments. Clement points out that the

existing sick leave policy c reates significant liabilities on the

government balance sheet, since the government needs to

account for the potential use of banked sick days. In early

2014, banked sick leave was valued at $5.2 billion.s At the

same time, a report by the Parliamentary Budget Office indi·

cates that it costs the government very little to pay sick leave

to federal servants. For example, "the report found that sick

leave can range from a low of 0 .1 6 percent of total [federal]

departmental spending to 2.74 percent on the high end of

the scale."7

Clement also cited absenteeism as an issue related to the

existing sick leave policy, since workers with large amounts

of banked sick leave time might use sick days for purposes

other than those originally intended. Sick leave policy is also

associated with an equity issue. Since employees need to

wait 65 days to g et long-term disabi lity payments, the net

effect is that long -term employees (ones who have had time

to bank many days) have a much better safety net than junior

employees. Clement believed that replacing the sick leave

policy with a short-term disability plan would ensure that

everyone's health needs are met in a consistent and fair man-

ner, while mitigating the problems associated with the existing

policy. He felt so strongly about it that he began negotiations

with insurance providers before finalizing the new policy with

the federal public service unions, a step that was very poorly

received.

As a result, 17 federal public service unions signed a "soli-

darity pledge,• agreeing that they would not surrender their

current sick leave benefits. Many of those unions had three-year

contracts that expired in December 2014, setting the stage

for conflict and unrest over this (and likely other) issues. Will a

bruising battle lie ahead?

Discussion Questions 1. Do the new collective bargaining rules for federal public

service unions introduced by the federal government represent an abuse of government power? Why or why not?

2. Have any negotiation or communication errors been made by the government or by the unions in relation to federal sick leave reform? If yes, what are they?

3. How could the government, as an employer, proceed to develop a more trusting relationship with employees under the new rules for collective bargaining? What could they do to better manage labour relations moving forward?

526 Additional Cases

Case 5: Gender-Based Harassment among the Royal Canadian Mounted Police Learning Goals In th is case, you w ill have an opportunity to evaluate how

organizational culture influences the way power is used and

ethical decisions are made w ithin the Royal Canadian Mounted

Police (RCMP). Consider why the RC MP developed such a

widespread problem with gender-based harassment allegations.

Did the RCMP leadership contribute to the problem and, if so,

how can they help to resolve it?

Major Topic Areas • Workplace harassment and bullying (Chapter 8)

• Organizational culture (Chapter 10)

• Organizational change (Chapter 14)

• Leadership (Chapter 11)

The Scenario In December 2006, the BC Court of Appeal upheld the decision

by the BC Supreme Court to award Nancy Sulz $950 000 in

damages for severe, long-term harassment experienced while

she worked for Canada's RCMP.8 The sexual harassment she

endured starting in 1995 led to her request for a medical dis-

charge from the RCMP in 2000, due to major depressive disorder.

Her harasser, Staff Sergeant Donald Smith, has continued to enjoy

a successful career w ith the force. Sulz was not the first person to

complain about him; another female officer made similar allega-

tions in the late 1980s but ultimately did not pursue them.

Four female RCMP officers alleged that they were sexu-

ally assaulted by Sergeant Robert Blundell during undercover

operations that took place in Calgary between 1994 and 1997.

Their internal complaints were dismissed and ignored, a prob-

lem that went all the way up to then-Commissioner Giuliano

Zaccardelli . The officers reported that after filing complaints,

they were "considered rats and whistle-blowers and subject

to harassing ridicule."9 The four officers felt that "the lack of

response signalled to the rank and file of the RCMP that silence,

cover-up, and minimization are the preferred method of dealing

w ith harassment w ithin the RCMP."10

The officers chose to file a lawsuit against the RCMP in

Calgary's Court of Queen's Bench in September 2003 because

of the RCMP's lack of response. •we have done everything we

can do with in the force to address the problems and issues,"

the four reported in a formal statement. "They have not been

satisfactorily resolved, and we've had to take this step as a

last resort. "11 At the time of filing their case, two of the alleged

victims were on stress leave and the other two reported los-

ing career opportunities within the force. One lost her role as

a hostage negotiator, and the other has not been assigned to

undercover operations since making the allegations. The alleged perpetrator of the sexual assaults, meanwhile, lost one day of

pay and was later promoted. The case was settled out of court

in 2007, w ith the terms kept secret.12 However, in December

2011 , The Rfth Estate reported that two of the complainants

continue to feel they were let down by the RCMP in the matter.

"That seems to be the way of the RCMP. that's kind of like the

toothless tiger. There's never any accountability," said Victoria

Cliffe, one of the four complainants. l3

Janet Merlo, o f Nanaimo, BC, would no doubt understand

the frustration the four Calgary RCMP officers experienced.

She received a medical discharge from the RCMP due to post-

traumatic stress disorder that was a direct result of ongoing

workplace harassment and bullying. She was allegedly subjected

to frequent sexual remarks and unwanted invitations from her

immediate supervisor. Co-workers also left sex toys and pornog-

raphy on her desk. It took two years after Merlo 's initial complaint

for the organization to respond. The response thanked Merlo for

her letter and noted: • As you are aware the RCMP does not take

these allegations lightly and, in fact, has an obligation to provide

a harassment free environment for al of our employees."14 Merlo was advised that the matter had been investigated but no action

would be taken. Subsequently, Merlo initiated legal proceedings,

but she was unable to continue due to the high costs involved.15

Heli Kijanen, of Thunder Bay, Ontario, who quit her job with the

RCMP in 2011 due to incessant harassment, has experienced

the same challenges trying to get justice.

Other court cases are proceeding. Officer B isabeth Couture,

of Surrey, BC, made a claim through civilian courts against three

male RCMP colleagues for systematically targeting her and

creating a climate of fear in the workplace. Staff Sergeant Travis

Pearson found himself in criminal court due to allegations that

he raped Officer Susan Gastaldo, of Burnaby, BC, in his home

and then actively stalked her children in order to intimidate her

into silence. An unidentified former RCMP officer testified at his

trial that Pearson had also attempted to rape her under very

similar circumstances, but she was too intimidated to report it

at the time.16

In November 2011, Corporal Catherine Galliford, of Langley,

BC, another RCMP officer and victim of ongoing workplace

sexual harassment, decided she had had enough. She used

the media to give her voice weight and expose the extent and

severity of the harassment experienced by many of the 2613

female RCMP officers, a small minority in a force of 22 000. It

was not long before other women, inspired by Galliford , also

came forward to tell their stories, resulting in the beginnings of

a class action lawsuit against the RCMP for its failure to address

widespread gender-based harassment and bullying. RCMP

leadership has little reason to be surprised. An internal study

conducted in 1996 found that 6 out of 1 0 female Mounties had

been sexually harassed at work and that more than 1 0 percent reported unwanted touching by male colleagues.

Unfortunately, that same leadership has done a very poor job

of responding to complaints or addressing the cultural issues

that underlie them. Questioned after Galliford had gone public ,

Krista Carle, one of the four Calgary RCMP officers who filed a

complaint against Blundell, said the following about her formal

complaint: "there was an internal review and nothing came of it.

There was a memo that went out to colleagues and staff about

how there was an incident with someone placing inappropriate

material on someone's desk. Everyone knew it was me, so it

was almost like I got blamed for getting the guys in trouble. And

they never found out who put the porn on my desk."17 Carte

was discharged from the RCMP with post -traumatic stress

disorder that she attributes to 19 years of unremitting sexual

harassment and general bullying.

Paul Champ, a lawyer who has been involved in RCMP

cases, says that "the process often takes years because the

RCMP often does not treat complaints as a priority .... Most

complaints are dismissed out of hand or dismissed with no

remedy offered to the complainant other than 'we talked to him

about it. "' 1 a

Recognition of the scope of the problem led Bob Paulson,

the new RCMP Commissioner, to make an unprecedented

formal statement acknowledging that the continued existence

of the force itself was at risk . He needed to "clear-cut problems

that have taken root deeply. Too many Mounties believe their

authority entitles them to misuse power . ... The Mounties are

one or two more earth -shattering heartbreaks away from losing

all c redibility. I tell you, one day there is going to be the removal

of the Stetson (the RCMP's emblematic hat and symbol of the

force) if we don't get this right. •l9

Additional Cases 527

Steps have been taken. An external labour relations expert

was retained to review the RCMP's existing harassment policy,

and a new code of conduct was introduced in April 2014. 20

Some are skeptical that these efforts will help to change a

long-entrenched culture. Officer Elisabeth Couture believes

that "management at the local level rout inely turns a blind

eye to harassment as it's occurring. You can have all the staff

workshops on the issue that you want, but unless detachment

supervisors deal with incidents in a forceful and unequivocal

manner it won't matter:21

The RCM P's female off icers who have experienced

harassment, both past and present, are not waiting around

to see if these efforts to effect change within the RCMP will

be successful. By July 201 4, a c lass ac tion lawsuit was

launched by over 330 women.22 The lawyer representing

Janet Merlo reports that "the sto ries are consistent. The

stories are common in terms of harassment, bullying, and

oftentimes, sexual issues. The calls are sad, hugely sad.

The stories are terrible. Many serving members are unable

to work because they are petrified in light of their experi -

ences."23 Lawyers are also quick to point out the impact

that these gender-biased attitudes may have on perceived

injustice in the broader community. For instance, a lack of

perceived sensitivity may inhibit female members of the pub -

lic from reporting sexual assaults or stalking incidents. With

the class action lawsuit proceeding, the RCMP leadership

will need to carefully consider how to restore its reputation

and cred ib ility among both female staff and the broader

community.

Discussion Questions 1. What aspects of the organizational culture in the RCMP

may have contributed to its problems with widespread sexual harassment allegations?

2 . Do the alleged claims of sexual harassment point to a leadership problem? Why or why not?

3. Devise a plan to manage a culture change at the RCMP. What resistance might you encounter and how could you overcome it?

Case 6: Disability Accommodations and Promotions at Bunco Learning Goals In this case, you will have to decide whether to promote an

employee who has a d isability. You will need to consider

whether the particular disability presents a legally and morally

defensible reason against promotion to a management role. If

you choose to promote the employee, what can you do to help

ensure his success? If you do not promote him, how can you explain and justify your decision, while helping the person to

maintain positive work attitudes?

528 Additional Cases

Major Topic Areas • Diversity (disability) (Chapter 3)

• Work attitudes (Chapter 3)

• Recruitment and selection (Chapter 10)

The Scenario Nicholas, the director of finance at Bunco Canada, sat wearily at

his desk, sighed deeply, and rubbed his eyes. 24 He wondered

whether an external search for the company's newly created

accounting manager role was the right choice. Had Nicholas's

decision been reasonable and fair?

Paul had worked for Nicholas as a staff accountant for 14

years. Paul was a Certified Management Accountant (CMA)

and was the senior accountant responsible for external financial

reporting.

Paul was a consistent and reliable employee who, due to

his long tenure, knew a lot about the organization. He had, at

some point in his career, performed most accounting functions

at Bunco, including plant costing , budgeting, analysis, and

financial planning, and so he understood the details of each

role extremely well. Paul got along well with the junior staff (most

of whom had been with the company for more than 1 0 years)

and was considered a key member of the accounting team. He

frequently acted as an informal adviser to other members of his

team, put in overtime, and engaged in special projects, includ-

ing process improvements and database optimization. In fact,

he had become the sole subject matter expert on some critical

financial applications needed for monthly reporting . In the past

four years, however, Paul had required special accommodations

from Bunco for Crohn's disease.

Crohn's disease is an incurable inflammatory bowel disease

that results in sporadic and unpredictable bouts of moderate

to severe pain, fever, diarrhea, gas, vomiting, and rectal bleed-

ing. 25 Sufferers of Crohn's may experience brief or extended

remissions that last months or even years, and then relapse

without obvious triggers, although many patients with Crohn's

disease report that stress significantly worsens symptoms and

can trigger flare-ups. 26 There is no cure for the disease, but

anti-inflammatory and immune-modulator medication, surgery,

and careful attention to diet can control symptoms and minimize

relapses for some people.27

Canadian courts recognize Crohn's disease as a leg iti-

mate disability for employment -related purposes. Employers

are required to accommodate Crohn's disease as long as

that accommodation does not result in excessive hardship

to them. "Duty to reasonably accommodate" means that an

employer must take all reasonable measures to enable a dis-

abled employee to keep working. In addition to making physical

accommodations such as providing laptops, wheelchair ramps,

etc., employers can also be required to revise job responsibili-

ties and performance appraisal criteria.

When he was first diagnosed with Crohn's four years ago,

Paul had discussed several concerns with Nicholas. "Nicholas,

I don't know how long it will take me to get this under control.

It's not like I can't work at all. I 'II go for a couple hours and be

fine, but then ... I don't think anyone wants me running to the

washrooms here. Besides it's humiliating. I need some privacy.

When the pain flares up it's all I can focus on. Maybe I could

just work from home on a laptop on my bad days, play it by

ear a little bit?"

Nicholas replied : "Well I don't see a problem with you work-

ing from home sometimes, but are you sure that's what you

want? I spoke to an HR representative about this yesterday,

and she pointed out that we have a corporate policy that pro-

hibits laptop use for everyone except senior management and

sales, but under the circumstances, I'm pretty sure I can get

one approved for you. I was wondering if going on long-term

disability might be a better solution for you to get yourself well

though, assuming that we can get the insurance company to

support the claim. Your health has to be your first priority. That

said, I don't really know what we'll do if you leave!"

Paul was reluctant to seek long-term disability, because he

did not want to give up so much of his life to the disease. It was

also unclear whether the claim would be accepted by Bunco's

insurer. After another discussion with an HR representative,

Nicholas decided that a laptop should be issued to Paul and

that he should be permitted to work at home on his bad days.

Nicholas trusted him not to abuse the privilege so felt no need

to document the decision further. An informal "handshake

agreement " was readily accepted by Paul.

Accommodation Implemented: The First Few Years Paul and Nicholas explained the situation to co-workers in a

regularly scheduled staff meeting, and, initially, everyone was

supportive of the new arrangement. As more time passed,

however, Nicholas became worried. He had anticipated the

occasional absence, but over the first few months of the new

arrangement, Paul consistently worked two days in the office

and then had to go home for two to three days, meaning he

was absent more than 50 percent of the time. Although Paul did respond to email, Nicholas felt that he had underestimated

the ongoing impact that Paul's absence might have on the

team over the long term . Nicholas was being inundated with

daily questions from staff that would normally have been

routed to Paul. Despite the difficulties adjusting, Nicholas

felt strongly that accommodat ing Paul was the right th ing

to do, so he said nothing. About five months after the initial

discussion and the purchase of a laptop for use by Paul, Paul's

symptoms decreased, and he was able to work in the office

about 85 percent of the time for the next 18 months.

About two years ago, Crohn 's-related relapses and prob-

lems returned for Paul. At the same time, due to growth in

market share and a new acquisition, the demands on the

accounting department had increased significantly. Budget

constraints did not allow for the hiring of addit ional staff.

Everyone had to work a little harder and be willing to work

significantly more overtime, often until 11 :00 p.m. or midnight

for several days in a row.

As previously mentioned, bouts of Crohn's disease are often

triggered by stress. Since month's- and year's ends were partic-

ularly stressful times, Paul would often experience attacks then,

just when he was needed most in the office. He was frequently

absent during these key times, missing more than half of the

month's ends over six months. Other accounting employees,

who previously had supported Paul's accommodations, began

to murmur their resentment among themselves.

One day Nicholas overheard several colleagues talk about

him, when they did not realize he was in the area. "It would

really make my life easier if I could work from home," one said .

Another asked, "Couldn' t he control his Crohn's with diet, if

he really tried to? I think he just doesn't want to be stuck here

all evening for a week like us suckers!" "I don't think he can

control it that much," another voice chimed . A fourth person

responded, •even so, it does make for a convenient excuse

doesn't it; he could fake it on any given day, and nobody

would even know the d ifference. I bet he took off this after-

noon because he heard they're bringing in pizza for dinner

AGAIN." "It's not even fair," a fifth voice complained. "If he can

phone and email his work in why can't we? My ex is furious

that I missed my night with the kids; I'll be paying for that one

for a while."

Nicholas worried about the worsening morale among what

had previously been a very close team. Furthermore, Paul had

been significantly late submitting his external financial reports

on several occasions, and his lack of availability had ham-

pered other people's ability to complete interdependent tasks.

Since his relapse began 18 months ago, the department had

been late in submitting its monthly financial reports to head

office seven times! The department still complied with dead-

lines imposed by the Securities and Exchange Commission

(SEC), but it missed many internal deadlines. While not all of

the department's late filings could be directly attributed to Paul's

condition (and absences), he had certainly contributed to the

problem.

That said, Nicholas knew that Paul had limited control over

the Crohn's disease, so Nicholas did not mention his concerns

to Paul or document performance problems. If anyone else said

anything to Paul directly, Nicholas was unaware of it. Nicholas

Additional Cases 529

ended up doing little more than hope that Paul would experi-

ence a remission and that the situation would improve.

The Accounting Manager Role Meanwhile the changes continued apace at Bunco. Ongoing

growth and further acquisitions-in-process meant that Nicholas

acquired significant new responsibilities. Part of that transition

included Nicholas taking on a more st rategic role in finan-

cial management and physically relocating to the company's

executive headquarters in Toronto. This meant that he would no

longer be around day to day to manage the accounting depart-

ment at the northern packaging facility. It was also no longer

adequate for the department to adopt a flat organizational

structure, with staff accountants formally reporting to the direc-

tor. An accounting manager position would need to be created .

As director, Nicholas was responsible for financial strategy,

identifying opportunities for cost reduction and revenue growth,

foreign exchange strategy, ameliorating controls, and managing

transition teams for new acquisitions. In turn, the new account-

ing manager would be responsible for much of what Nicholas

had previously done. This included advising senior executives,

including the CEO, about monthly financial results and projected

year-end performance, as well as overall responsibility for cost-

ing and management accounting . This position required ongo-

ing communication with various parts of the company, including

occasional travel to the head office. The most important part

of the accounting manager role, however, involved managing

the team at the northern facility. This included assigning tasks

and providing daily guidance, advice, and social support to

junior staff.

Under normal circumstances, Paul would have been the nat-

ural choice for promotion to this new accounting manager posi-

tion. He wanted it; indeed, he felt it was owed to him in return

for his long years of service. He was the most senior person in

the department and, other than Nicholas, Paul had the highest

level of formal accounting education. The other members of the

department did not qualify for the role, as they were not CMAs.

Paul had also created many of the spreadsheets and systems

that were an integral component of the company's financial

reporting system. The new role, however, would come with a

significantly increased stress load, since it involved management

responsibilities and a much higher political profile in the organi-

zation. Could Paul really handle the stress, given his disability?

Also, if he did experience a flare-up, how could he manage a

team of people from home, when multiple questions came up

each day? Reports to head office were already being sent late

with alarming frequency, damaging the northern branch's repu-

tation within the company. Would this situation become worse

under Paul's direction?

530 Additional Cases

Fourteen months earlier, Nicholas had carefully considered

his options vis-a-vis filling the future account manager position.

He tried to discuss his concerns with his HR department but

discovered that promotions were legal and ethical grey areas

when it came to d isability accommodation. Under a subset

of law regarding duty to accommodate, employers were not

able to deny promotions based on inability to perform a job

without first proving undue hardship, but what did that really

mean? The concept was largely untested in the courtroom. An HR staff member suggested that Paul be asked to participate

in a detailed medical assessment to prove that he could not

complete the essential operational requirements of the job. This

suggestion did not sit well with Nicholas. A medical assessment

could be regarded as invasive, and the procedure would lead

to Paul being expected to share a great deal of confidential

medical information. Furthermore, as with any management

job, it was hard to distinguish the essential aspects of the job

from the secondary ones. Presenting and defending monthly

financial reports, for example, was a key part of the job. It was

also very stressful, as the reports were examined and ques-

tioned in detail by powerful senior executives. Since stress was

a trigger for flare-ups of Crohn's d isease, could Paul handle

the pressure? What about travel to head office? This was also

stressful, and travel might well prove impossible for Paul. Was it

fair to expect Paul to try, given his medical condition? Nicholas's

biggest concern, however, was that Paul would not always be

physically available to the staff. Nicholas felt that the physical

presence of a manager in the office was central to the orderly

flow of information, completion of daily tasks, and maintenance

of a supportive and collegial environment. He did not know if he

could truly justify calling that physical presence "essential,• but

his gut told him it was.

Under pressure to decide whether to fill the new position

internally or externally, Nicholas was not sure that he was mak·

ing the right choice, but he decided to launch an external search

for an account manager, instead of promoting Paul.

Discussion Questions 1. Should Nicholas have promoted Paul? Why or why not?

2. a. What are Nicholas's legal responsibilities to Paul in this situation?

b. What are Nicholas's ethical responsibilities to Paul in this situation? How does that balance with Nicholas's responsibilities to Paul's co-workers?

3. If Paul were to be promoted, what strategies could Nicholas use to help Paul achieve success in his

new role?

Case 7: Promotion from Within Learning Goals This case will allow you to evaluate the impact of (in)effective

employee relations on motivation and job performance. Pay

particular attention to issues of perceived equity and also to

expectation setting and how they each relate to motivation. Is

this company's approach to internal recruitment likely to cause

ongoing problems for them? If so, why?

Major Topic Areas • Motivation (Chapters 4 and 5)

• Work attitudes (Chapter 3)

• Communication (Chapter 7)

• Politics (Chapter 8)

The Scenario The two interviewers leaned forward across the table and

looked at Elisa intently. "We are very impressed w ith your

resume and your recently completed MBA," the HR manager

stated, "but the client training role that we have available is

entry level. With your 1 0 years of sales and training experience

and your education, you seem rather overqualified and we are

concerned."

Elisa shifted slightly in her seat then turned on her best smile

as she answered the interviewer. ·1 do understand that I am

overqualified for this job," she responded, "I have also heard

that Kium Solutions is a really great place to work and I know

your CEO has some really interesting ideas for moving the

company forward. I think I could do a lot of good here and I am

willing to start in an entry-level job to get in the door as long as

there are other opportunities down the road." The interviewers

glanced at each other and nodded. "Well that works for us,"

responded the HR manager. "You can start now and I am quite

confident that something more challenging that better matches

your qualifications will come up within a year or so." "That

sounds great," said B isa. "I look forward to coming on board."

Fifteen months later, B isa was still in the entry-level training

role, which saw her travelling to different client sites each day

to train their new employees on how to use Kium's document

management systems. Elisa was the first person with a degree

in education who had served in the client trainer role. Her for-

mal knowledge about teaching and learning had helped her

make substantial improvements to the existing client training

program. Elisa's manager had commented several times about

the significant increases in client satisfaction ratings that they

had observed. Clients were especially impressed that Elisa was

so readily available to them - she even gave them her personal

cellphone number. If they had a software question or problem

at 9:00 p.m. or on a Saturday, Elisa would answer her phone

and cheerfully help, something that was neither expected nor

required. Bisa was sure that she had done everything she could

to impress her new employers. As a result, she was particularly

excited when her co-worker pointed out the new job that had

been posted to the internal recruitment webpage (a special

website for jobs posted internally with the intent of promoting

from within).

The post ing was for a newly created posit ion, d irecto r

of Training. Previously, the company only had client trainers

(an ent ry-level job) and HR generalists who took care of all

employee training. The new d irectorship would report to the

VP of Sales, making it a highly prestigious position within the

corporate hierarchy. The director would be responsible for

improving initial staff orientation and the training received by

new hires in the Sales department. Kium relied on its salesforce

to grow its business. The director of Training would therefore

be fulfilling an important role in the organization. Elisa could not

be more delighted. After all, she had an MBA and a degree in

adult education, plus she had over a decade of experience

selling software solutions (although for companies other than

Kium). In fact, it was her desire to get away from never-ending

sales quotas and broaden her career choices that led her to

pursue an MBA. Given her many qualifications and her record

of strong performance, B isa was confident that she would be

a competitive candidate for the role.

Elisa sent in her resume and, at the end of the application

period, she was not the least bit surprised when she was called

for an interview with the VP of Sales.

Elisa knew that she would have to explain why she was well

qualified for the job. To prepare for the interview, she reread the

Additional Cases 531

strategic goals, vision, and mission of the company and thought

carefully about how she could contribute. She even had her

boyfriend ask her mock interview questions so that she could

practise her answers. On the morning of her interview, although

she felt prepared, she was also nervous. Then disappointment

struck. The assistant to the VP of Sales called to say that the

VP of Sales was no longer interested in interviewing her. After

reviewing her resume, he realized that she did not have enough

direct experience in sales at Kium .

Elisa was stunned, wondering what on earth had happened .

She could not believe that she would not even be given an

opportunity to explain why she would be a good candidate for

the job. She sent an email to the VP's assistant explaining her

qualifications, but the assistant again confirmed that Bisa would

not be permitted to interview for the job. Ultimately, B isa went

home an hour early that day, still distressed and bewildered. At

5:17 p.m. her cellphone rang . She saw that it was an important

client who had recently purchased an expensive and complex

solution from Kium. Just days ago, Elisa had promised the

CEO at the client company that she would be there to answer

questions and support their roll-out every step of the way. She

looked again at the call display and at the time. She quietly

looked away and let the call go to voicemail. The client could

wait until Monday.

Discussion Questions 1. How would you explain the abrupt change in Elisa's cus-

tomer service behaviour? Outline what has happened to her motivation using expectancy and equity theories.

2. Could Elisa's employer have anticipated the impact that cancelling the directorship interview might have on her future performance? What should her employer have done differently?

3. Elisa raised concern about being shut out of the direc- torship interview to the HR manager. What could the HR manager do now to help improve Elisa's motivation? Explain why your idea would be effective.

Case 8: RepairingJobs That Fail to Satisfy Learning Goals Companies often divide up work as a way to improve efficiency,

but specialization can lead to negative consequences. FlowFix

is a company that for years has effectively used specialization

to reduce costs relative to that of its competitors, but rising

customer complaints suggest that the firm's strong position

may be slipping . After reading the case, suggest some ways

the company can create more interesting work for employees

while improving customer satisfaction rates. You will also need

to tackle the problem of how to find people qualified and ready

to perform the multiple responsibilities required in FlowFix's jobs.

532 Additional Cases

Major Topic Areas • Job design (Chapter 5)

• Job satisfaction (Chapter 3)

• Personality (Chapter 2)

• Emotional labour (Chapter 2)

The Scenario FlowFix is a mid -sized residential and commerc ial plumbing

maintenance firm that operates in the Greater Vancouver area.

It has been a major regional player in plumbing for decades. Tyron Johnson has been the senior execut ive at FlowFix for

about two years. He used to work for a newer competing chain,

Lightning Plumber, which has been drawing away more and more customers from FlowFix. Although his job at RowRx pays

more, Tyron is not happy with the way things are going. He has

noticed the work environment is not as vital or energetic as the environment he saw at Lightning Plumber.

Tyron thinks the problem is that employees are not motivated to provide the type of customer service Lightning Plumber

employees offer. He recently sent surveys to customers to col-

lect information about customer service performance, and the data confirmed his fears. Although 60 percent of respondents

said they were satisfied with their experience and would use

RowFix again, 40 percent felt their experience was not good, and 30 percent said they would use a competitor the next time

they had a plumbing problem.

Tyron is wondering whether FlowFix's job design might be contributing to its problems in retaining customers. FlowFix

has about 11 0 employees who are d ivided into one of four

basic job categories: plumbers, plumber's assistants, order processors, and billing representatives. This structure is

designed to keep costs as low as possible. Plumbers, who are licensed, make very high wages, whereas plumber's assistants

make about one-quarter of what a licensed plumber makes.

Using plumber's assistants is therefore a very cost-effective strategy that enables FlowRx to easily undercut the competi-

t ion when it comes to price. Order processors make even

less than plumber's assistants but about the same as billing processors. All work is specialized, but employees are often

dependent on those in other job categories to perform at their

most effic ient level. Like most p lumbing companies, FlowFix gets a lot of

residential business from people who consult the Internet.

Corporate clients also use the company's online interface to make nonroutine maintenance requests. Customers either

call in to describe a plumbing problem or submit an online

request for plumbing services, receiving a return call within 24 hours with the information required to solve the problem.

In both scenarios, FlowFix's order processors determine from the customer's description of the problem whether a plumber

or a plumber's assistant should make the service call. The

job is then assigned accordingly, and a service representa- tive goes to the location. When the job has been completed,

the info rmat ion is relayed to a billing representat ive. The

billing representative forwards the invoice to the service rep via cellphone, and the service rep then presents a bill to the

customer for payment by cred it card , debit card, or cash

(corporate clients remit payment via monthly invoices rather than on-the-spot).

The Problem Although specialization cuts costs significantly, Tyron is wor-

ried about customer dissatisfaction. According to his survey,

about 25 percent of customer contacts ended in no service call because customers were confused by the diagnostic

questions the order processors asked or because the order

processors did not have sufficient knowledge or skill to explain the situation. That means fully one in four people who call

FlowFix to hire a plumber were worse than dissatisfied: They

did not become customers at all! The remaining 75 percent of calls that d id end in a customer service encounter resulted

in other problems.

The most frequent complaints, Tyron discovered via the customer surveys, were about response time and cost , espe-

cially when the wrong person was sent to a job. A plumber's

assistant cannot complete a more technically complicated job. If a plumber's assistant arrives on site and cannot do the work,

the appointment must be rescheduled (with a licensed plumber) and the customer's time and the staff's time have been wasted.

The resulting delay often caused customers to decline further

contact with FlowRx- many of them decided to move forward with Lightning Plumber instead.

"When I arrive at a job I can't take care of," says plumber's

assistant Kiera Fritz, "the customer gets ticked off. They thought they were getting a licensed plumber, since they were calling for

a plumber. Telling them they have to have someone else come

out doesn't go over well." On the other hand, when a plumber responds to a job

easily handled by a plumber's assistant, the customer is still

charged at the plumber's higher rate. Licensed plumber Philip Wong also does not like being in the position of giving custom-

ers bad news. "If I get called out to do something like snake a drain, the customer isn't expecting a hefty bill. I'm caught

between a rock and a hard place- I don't set the rates or

make the appointments, but I'm the one who gets it from

the customer.• Plumbers also resent being sent to do such

simple work.

Louisa Gomez is one of FlowFix's order processors. She is

also frustrated when the wrong person is sent to a job but feels

she and the other order processors are doing the best they

can. •we have a questionnaire we're supposed to follow with

the calls to find out What the problem is and who needs to take

the job," she explains. "The customers don't know that we have

a standard form, so they think we can answer all their ques-

tions. Most of us don't know any more about plumbing than

the caller. If they don't use the terms on the questionnaire, we

don't understand What they're talking about. A plumber would,

but we're not plumbers; we just take the calls."

Customer service issues also involve the billing representa-

tives. They are the ones who are responsible for continuing to

contact customers about payment. "It's not my fault the wrong

guy was sent," says Susan MacArthur. "If two guys went out,

that's two trips. If a plumber did the work, you pay plumber

rates. Some of these customers don't get that I didn't take

their first call, and so I get yelled at." The billing representatives

also complain that they see only the tail end of the process, so

they don't know What the original call entailed. The job is fairly

impersonal, and much of the work involves recording customer

complaints. Remember-40 percent of customers are not sat -

isfied, and it's the billing representatives Who take the brunt of

customers' negative reactions on the phone.

All employees have to engage in emotional labour and it

is not clear that they have the skills or personality traits to

complete the customer interaction component of their jobs.

RowFix's employees are not trained to provide customer ser-

vice, and they see their work mostly in technical, or mechanical,

terms. Quite a few are actually anxious about speaking directly

with customers. The order processors and billing representa-

tives realize customer service is part of their job, but they also

find dealing with negative feedback from customers and co-

workers taxing.

FlowFix

Additional Cases 533

A couple of months ago, a human resource management

consultant was hired to survey FlowFix employees about their

job attitudes. The results, shown below on a scale of 1 to

5, indicated that FlowRx employees were less satisfied than

employees in comparable jobs. The table below provides a

breakdown of respondents' satisfaction levels across a number

of categories.

The Proposed Solution The company is in trouble, and as revenues shrink and the cost

savings that were supposed to be achieved by dividing up work fail to materialize, a change seems to be in order.

Tyron proposes using cash rewards to improve performance

among employees. He thinks if employees were paid based on

work outcomes, they would work harder to satisfy customers.

Because it's not easy to measure how satisfied people are with

the initial call-in, Tyron would like to give the order processors

a small reward for every 20 calls successfully completed. For

the hands-on work, he would like to have each billing repre-

sentative collect information about customer satisfaction for

each completed call. If no complaints are made and the job is

handled promptly, a moderate cash reward would be given to

the plumber or plumber's assistant. If the customer indicates

real satisfaction with the service, a larger cash reward would

be provided . Tyron also wants to find a way to hire people who are a

better fit with the company's new goals. The current hiring

procedure relies on unstructured interviews, and Tyron has

realized that he, his senior office manager, and his most experi-

enced lead plumber are not very consistent when interviewing.

Furthermore, they often rely on their gut instinct when making

hiring decisions. Tyron thinks it would be better if hiring methods

were standardized and customer service skills were evaluated

during that process to help them identify recruits who can actu -

ally succeed in the job.

FlowFix FlowFix Average Plumber's As- Office Average Office

Plumbers sistants Employees Plumber Employees

I am satisfied with the wO<I< I am asked to do. 3.7 2.5 2.5 4.3 3.5

I am satisfied with my working conditions. 3.8 2.4 3.7 4.1 4.2

I am satisfied with my interactions with co-workers. 3.5 3.2 2.7 3.8 3.9

I am satisfied with my interactions with my supervisor. 2.5 2.3 2.2 3.5 3.4

The information that appears above about "average plumbers" and "average office employees· is taken from the consultant's records of similar companies and published industry data about skilled tradespeople. The oomparatively IOVv averages for Flowfix employees are not exactly surprising given some of the complaints FlowFix empJoyees have made. Tyron is worried about these resuts, but has not been able to fonnulate a solution. The traditional Flov,Fix culture has been focused on minimizing costs. and the "soft stutr like employee satisfacUon has not been a major issue.

534 Additional Cases

Discussion Questions 1. Although it's clear employees are not especially satisfied

with their work, do you think this is a reason for concern? Does research suggest satisfied workers are actually better at their jobs? Are any other behavioural outcomes associated with job satisfaction?

2. Using the job characteristics model, explain why the present system of job design may be contributing to employee dissatisfaction. Describe some ways you could help employees feel more satisfied with their work by redesigning their jobs.

3. Tyron has a somewhat vague idea about how to imple- ment the cash rewards system. Describe some of the specific ways you would make the reward system work better, while keeping morale high, based on the case.

Case 9: Virtual Organizations Learning Goals The multinational o rganizat ion is an increasingly common and important part of the economy. This case takes you

into the world of a cutt ing-edge music software business seeking success across three very different national and

organizational cultures. Its managers need to make impor-

tant decisions about how to structure work processes so that employees can be satisfied and productive doing very

d ifferent tasks.

Major Topic Areas • Organizational structure and virtual organizations

(Chapter 13)

• Organizational culture (Chapter 10)

• Diversity and teams (Chapter 6)

• Organizational socialization (Chapter 1 0)

• Organizational change (Chapter 14)

The Scenario Newskool Grooves is a transnational company that develops music software used to compose music, play recordings in

c lubs, and produce albums. Founder and CEO Gerd Finger is, understandably, the company's biggest fan. "I started this

company from nothing, from just me, my ideas, and my com-

puter. I love music - love playing music, love writing programs

4. Explain the advantages and disadvantages of using financial incentives in a program of this nature. What , if any, potential problems might arise if people are given money for achieving customer satisfaction goals? What other types of incentives might be considered?

5. Create a specific plan to assess whether the reward system is working. What are the dependent variables that should change if the system works? How will you go about measuring success?

6. What types of hiring recommendations would you make to find people better suited for these jobs? Which Big Five Personality Model traits would be use- ful for the customer service responsibilities and emo- tional labour?

for making music, love listening to music - and the money is

nice, too." Finger says he never wanted to work for some- one else, to give away his ideas and let someone else profit

from them. He wanted to keep control over them, and their

image. "Newskool Grooves is always ahead of the pack. In this business, if you can't keep up, you're out. And we are the

company everyone else must keep up with. Everyone knows when they get something from us, they're getting only the best

and the newest.•

The company headquarters are in Berlin, the nerve centre for the organization, where new products are developed and

the organizational strategy is established. Newskool out -

sources a great deal of its coding work to programmers in Bangalore, India. Its marketing efforts are increasingly based

in its Toronto offices. This division of labour is at least partially

based on technical expertise and cost issues. The German team excels at design and production tasks. Because most

of Newskool's customers are English speakers, the Toronto

office has been the best group to write ads and market products. The Bangalore offices are filled with outstanding

programmers who don't require the very high rates of com- pensation you would find in German or Canadian offices. The

combination of high-tech software, rapid reorganization, and

outsourcing makes Newskool the very definition of a virtual organization.

Finger also makes the final decision on all hiring for the com-

pany and plaoes a heavy emphasis on independent work styles. "Why would I want to put my company in the hands of people

I can't count on?" he asks with a laugh. "They have to believe

in what we're doing here, really understand our direction and

be able to go with it. I'm not the babysitter, I'm not the school

master handing out homework. School time is over. This is the

real world."

The Work Culture Employees want to work at Newskool Grooves because it's cutting edge. Newskool 's core market is dance musicians

and DJs-people who appreciate that while relatively expen-

sive, Newskool is a very high-quality and innovative brand. Newskool sees itself as a trendsetter, and this strategy has

tended to pay off. While competitors develop similar products

and therefore need to continually lower their prices to compete with one another, Newskool has kept revenues high by creat -

ing completely new products that don't face this type of price

competition. Unfortunately, computer piracy has eroded Newskool's

ability to make money with just software-based music tools,

and it has had to move into the production of hardware, such as drum machines and amplifiers that incorporate its com-

puter technology. Making this massive market change might be challenging for some companies, but for an organization

that reinvents itself every two to three years like Newskool

does, the bigger fight is a constant war against stagnation and rigidity.

The organization has a very decentralized structure. With

only 115 employees, the original management philosophy of allowing all employees to participate in decision making and

innovation is still the lifeblood of the company's culture. One

developer notes, "At Newskool, they want you to be part of the process. If you are a person who wants to do what you're told

at work, you're in trouble. Most times, they can't tell you what

they want you to do next -they don't even know what comes next! That's why they hire employees who are creative, people

who can try to make the next thing happen. It's challenging, but

a lot of us think it's very much an exciting environment."

The Virtual Environment Because so much of the work can be performed on computers,

Finger decided early to allow employees to work outside the

office. The senior management in Berlin and Toronto are both quite happy with this arrangement. Because some marketing

work does require face-to-face contact, the Toronto office has

weekly in-person meetings. Employees who like Newskool are happiest when they can work through the night and sleep

most of the day, firing up their computers to get work done at the drop of a hat. Project discussions often happen via social

networking on the company's intranet.

The Bangalore offices have been less eager to work with the virtual model. Managers say their computer programmers

find working with so little structure rather uncomfortable. They

Additional Cases 535

are more used to the idea of a strong leadership structure and well-defined work processes. "When I started," says one

manager, "Gerd said getting in touch with him would be no problem, getting in touch with Toronto would be no problem.

We're small , we're family, he said. Well, it is a problem. When

I call Toronto, they say to wait until their meeting day. I can't always wait until they decide to get together. I call Gerd-he

says, 'Figure it out.' Then when I do, he says it isn't right and

we have to start again. If he just told me in the first place, we would have done it ."

Some recent events have also shaken up the company's

usual way of doing business. Developers in the Berlin office had a major communications breakdown about their hard -

ware OJ controller, which required many hours of discussion

to resolve. It seems that people who seldom met face to face had all made progress- but had moved in opposite direc-

tions. To test and design the company's hardware products,

employees apparently need to do more than send each other code; sometimes they need to collaborate face to

face. Some spirited disagreements have been voiced within the organization about how to move forward in this new

environment.

At the same time, the Toronto office was experiencing chal· lenges in its ability to execute its marketing plans. According to

Marketing Director Sandra Pelham, "Now that we were produc-

ing hardware-real instruments-we finally thought, 'All right, this is something we can work with!' We had a whole slate of

musicians and DJs and producers to contact for endorsements,

but Gerd said, 'No way.' He didn't want customers who only cared that a celebrity liked us. He scrapped the whole cam-

paign. He says we're all about creativity and doing our own

thing - until we don't want to do things his way." Although the organization is not without problems, there is

little question Newskool has been a standout success in the computer music software industry. While many companies are

failing, Newskool is using its market power to push forward the

next generation of electronic music-making tools. As Finger puts it, "Once the rest of the industry has gotten together and

figured out how they're all going to cope with change, they'll

look around and see that we're already three miles ahead of them down the road to the M ure."

Discussion Questions 1. Identify some of the problems likely to occur in a virtual

organization such as Newskool Grooves. What are the advantages of virtual organizations?

2. Consider some of the cultural issues that will affect a company operating in various parts of the world. What actions would you take to ensure that Newskool's different offices work effectively with one another?

536 Additional Cases

3 . Based on what you know about motivation, personal- ity, and organizational culture, what types of people are likely to be satisfied in each functional area of the com- pany? Use concepts from the job characteristics model to describe what might need to change to increase employee satisfaction in all areas.

Case 10: Trouble at City Zoo Learning Goals In this case, you will have an opportunity to assess how to

restore trust among employees who have low morale. You

should consider how organizational culture has led to the prob-

lems faced at the zoo. You will determine whether the organi-

zational structure should be changed and also whether new

reward systems should be put in place.

Major Topic Areas • Communication (Chapter 7)

• Organizational design (Chapter 13)

• Leadership (Chapter 11)

• Organizational culture (Chapter 1 OJ

• Job design (Chapter 5)

• Change management (Chapter 14)

• Resistance to change (Chapter 14)

The Scenario City Zoo has been an important visitor destination for genera-

tions of children.28 Locally, provincially, and nationally, City

Zoo has had a remarkable reputation for providing a high-

quality environment for its animals while enabling children

of all ages to learn about animals and see them in natural

environments. The zoo operates with a dedicated staff, as

well as a large number of volunteers. Over half of its revenues

come from a special tax levy on city property owners who

vote on whether to renew the levy during city elections held

every three years.

Despite its sterling reputation, the zoo went through a year

of unpleasant publicity in 201 7, after the board of directors dis-

missed head veterinarian Tim Bernardino. Newspaper reports

of the dismissal suggested that Bernardino had been dismissed

for speaking up about harm to some of the zoo's animals. The

4. What types of human resources practices need to be implemented in this sort of organization? What principles of selection and hiring are likely to be effective? Which Big Five personality traits and abilities might Newskool supervisors want to use for selection?

public ity forced zoo management to respond to many tough

questions regarding its practices and operations regarding

both animals and staff. City Council acted swiftly in the face of

continued negative press coverage of the zoo, feeling a respon-

sibility to the taxpayers. In order to answer all of the questions

raised by the press, council c reated a special Citizens' Task

Force to review the zoo's finances and operations, including

animal care.

It is February 2018, and Emma Breslin has just been hired

by the board of directors to take over as executive director of

the zoo. She is reviewing the many concerns raised by the task

force and wondering how she might restore employees' and

the public's confidence in the zoo. She will be meeting with the

board in two weeks to present her recommendations for mov-

ing forward. The board has asked her to act quickly because

city residents will vote on the next tax levy in just three months.

A "no" vote would substantially reduce the zoo's revenues for

the next several years. (Exhibit 1 outlines the revenues and

expenses of the zoo for fiscal year 201 7 .)

Background The City Zoological Gardens got its start in 1905, when

Samantha Fraser donated a hedgehog to the city's Parks

Board. Building on that first donation, the zoo has grown to

be one of the most comprehensive zoological institutions in

the country. The zoo's African Savannah recreates the look of

Africa's plains and jungles. The Savannah houses the world-

famous Hippoquarium, the first natural hippo habitat to be

created in a zoo. The zoo includes exhibits for Siberian tigers,

Asian sloth bears, and the endangered African wild dogs. The

zoo has also renovated the Aviary and the Primate Forest. More

recent improvements include a new parking lot and gift shop.

The zoo is a top tourist attraction for the city, and the num-

ber of annual visitors to the zoo has nearly tripled from 1982

(364 000 visitors) to 2016 (more than 1 million visitors). In the

past five years, the zoo has twice been ranked as one of the top

10 zoos in North America for children and families. It was also

voted one of the top five zoos in North America in the "North

EXHIBIT 1 City Zoo Revenues and Expenses, Fiscal Year 2017

Public Support

Development Revenue

Earned Revenue

Total Public Support and Revenue

Expenses

Total Operating Expenses

Excess (Deficit)

Property Tax Levy Receipts

Grants

Education Program Revenue

Total Public Support

Membership

Friends of the Zoo

Annual Fundraising

Corporate Support

Development Events

Total Development Revenue

Admissions

Advanced Sales

Gross Revenue From Concessions and Gift Shop Operations

Rides, Parking, and Tours

Facility Rentals

Total Earned Revenue

Other Revenue

Cost of Goods Sold

Wages and Benefits

Supplies, Maintenance, and Utilijies

Professional Services

Other Expenses

Conservation - Project Support

Animal Purchases

Special Exhibits

Additional Cases 537

$6466860

$174 780

$344 110

$6985 750

$3903420

$214 397

$130852

$302 952

$391 565

$4 943186

$3253355

$337 908

$7 153483

$1560727

$1 16 520

$12 421 993

$34956

$24385885

$2 448164

$13900524

$4 387 642

$2 246560

$714 487

$45093

$76542

$293630

$24112 642

$273243

America's Favorite Zoo" contest sponsored by Microsoft. The

zoo's vision and mission statements (see Exhibit 2) are widely credited with helping the zoo achieve these awards.

A recent study by a local university found that the zoo gener-

ates almost $8 in local economic activity for each tax dollar it receives.

Until 1982, the zoo was run by the city. That year, owner-

ship was transferred to the City Zoological Society, a private nonprofit organization. Because of its dedication, the Society

was able to introduce a number of improvements that the city had not been able to accomplish. The zoo has since doubled

in size and now contributes significantly to the local economy.

The zoo employs 157 full -time staff members and more than 550 part-time and seasonal employees. There are also

more than 300 volunteers who assist with programs, events,

and community outreach. Donors and members provide financial support for animal conservation and educational

programming.

538 Additional Cases

EXHIBIT 2 City Zoo Vision and Mission Statements

Vision Statement To be one of the world 's outstanding zoological institutions.

Mission Statement Our mission is to provide excellent animal management, educa-

tional programs, and scientific activities and to provide visitors

with an enjoyable, educational, and family-oriented experience.

Objectives to achieve mission statement:

• Animal exhibits that reflect natural habitats

• Educational programs to help vis~ors understand the

relationships of wildlife and the environment

• Refuges for rare and endangered species to protect and propagate them

• Scientific programs that contribute to greater understanding

of animals and their hab~ats

• A clean, safe, and pleasant facility for visitors and employees

• A broad base of community support and involvement

• Operating on a sound business basis

The Ministry of Natural Resources Inquiries

The 2013 Inquiry In December 2012, Medusa, a female sloth bear mistakenly believed to be pregnant, was put into

isolation, where it died. Zoo officials later admitted that they

had misunderstood how to properly care for sloth bears. Tim

French, the curator of large mammals at the time, made the

decision to put the bear in isolation on his own, without report-

ing this to his supervisors. The bear's zookeeper, Melissa Fox,

who reported to French, objected to his decision, but no one

would listen to her, including acting head veterinarian Wynona

Singh (who was in charge while Dr. Bernardino was away on

research). Fox's daily notes, which she was required to file with

her supervisor, described her worries about the bear. Fox finally

became so upset with the bear's condition that she asked to

be transferred to another part of the zoo. French resigned after

the bear's death.

As a result of the investigation, the zoo was fined $1500 by

the Ministry of Natural Resources for violating federal animal

welfare regulations. The zoo also agreed to create an animal

reporting system so that employees could raise any concerns

they had about animal welfare, although nothing ever resulted

from this agreement.

The 2016 Inquiry In February 2016, the Ministry of Natural Resources began an investigation of animal deaths that had

occurred at the zoo over the past several years:

• Cupid, a hippopotamus, died in the summer of 2015

at the age of 49. While the veterinary staff raised

some questionable circumstances concerning the

death, zoo officials dismissed the animal's death as

"old age."

• George, a 14-year-old giraffe, died in 2013 from teta-

nus three weeks after he was gored by a kudu when

the two were put in an enclosure together.

• Medusa, the female sloth bear, died in December

2012.

Zoo officials were puzzled about why the Ministry of Natural

Resources had decided to investigate these deaths. "Initially,

my gut reaction was that the Ministry of Natural Resources

was just stepping things up because of what had transpired at

that other zoo," a zoo spokesperson said. The spokesperson

was referring to several suspicious animal deaths, including an

orangutan euthanized by mistake, at a large zoo in another part

of the country.

As the Ministry of Natural Resources investigation pro -

gressed, however, many zoo staff became nervous about

the way it was being conducted. Inspectors d id not reveal

the exact reason for their inspection, but they asked spe-

c ific questions about the giraffe and the hippopotamus.

The inspecto rs requested to speak to some employees,

while refusing to speak w ith others. Zoo officials later said

the surprise inspection was "unusual, unprecedented, and

aggressive."

• As you can imagine, it was a very upsetting and confusing

time. We've never had this kind of inspection, and the frustrating

thing was they would not tell us what they were inspecting for,"

said William Lau, the zoo's executive director.

Before the Ministry of Natural Resources could issue a

report, zoo officials decided to conduct their own internal inves- tigation into the deaths of George, the giraffe, and Cupid, the

hippopotamus. Officials were concerned that someone at the

zoo had made a call to the Ministry of Natural Resources that

led to the surprise inspection. Lau claimed that the investigation

was not a "witch hunt ," and that officials were not trying to find

out if anyone had acted as a whistle-blower. "We simply want

to understand what the Ministry of Natural Resources is worried

about ," he said.

The Ministry of Natural Resources issued a report on its

investigation the following month. In it, the inspectors noted that

the zoo had ignored the warnings of Dr. Tim Bernardino, City

Zoo's head veterinarian, about animal care. "From the review

of numerous documents and interviews, it is clear that these

veterinary recommendations from the attending veterinarian

[Dr. Bernardino] have not been addressed in a reasonable time.

The licensee [the City Zoo) has failed to provide the attending

veterinarian with adequate authority to ensure the provision of

adequate veterinary care,• the report stated.

Zoo Management

Board of Directors The board of directors oversees City Zoo's business affairs and

strategic plan, but day-to-day operations are left in the hands

of the executive director. There are 18 people on the board .

Each board member serves a three-year term. The term can

be renewed up to two times, if the board member is nominated

by the Nominating Committee and approved by the board of

directors. The board in recent years has been mostly hands-

off, allowing the executive director a great deal of latitude in

running the zoo.

Executive Director The executive director is effectively the CEO of the zoo, car-

rying ou1 the strategic plan of the board. William (Bill) Lau was

appointed executive director in 1993. Under his leadership,

the zoo expanded considerably, won numerous awards, and

significantly increased its revenues.

Lau did a good job of raising the zoo's profile externally,

particularly in leading fundraising efforts that brought numer-

ous exotic animals to the zoo. He was not necessarily seen

as a good internal leader, however. The board 's Executive

Management Committee reported at a March 13, 2014, board

meeting that the zoo's work environment was characterized

by numerous disagreements. The minutes of this meeting

showed that the board discussed ••open warfare' between

managers; backbiting and rude behaviour during meetings;

and problems in managers ' relationships with Mr. Lau." The

minutes also reported that ·w orking with Bill is experienced

by some as difficult, int imidating, or scary." Some staff had

complained that Lau frequently yelled at staff and failed to

acknowledge their value. "There is a fear of repercussion, and

some people are afraid they will be ... seen as stupid, belittled

in meetings, (and] blamed and shamed in front of others," the

minutes state.

Chief Operating Officer The chief operating officer (COO) is second in command at

the zoo, reporting to the executive director. The COO respon-

sibilities include most of the operational functions of the zoo:

finance, human resources, maintenance and horticulture, inter-

pretive services, and education. The Department of Veterinary

Care was the only nonoperational function that also reported

to the COO. All other animal-related departments, including the

curators, reported to the executive director.

In early 2014, the zoo hired Robert (Bob) Stellenbosch to

be the new COO. Unlike the COO he replaced, Stellenbosch

had no animal-care experience in his p revious positions.

Before coming to the zoo, he had been execut ive d irector

of the National Funeral Directors' Association for 14 years.

Additional Cases 539

Prior to that , he had been executive director of the Provincial

Bankers' Association. Nevertheless, veterinary care still fell

under Stellenbosch's mandate, and the head veterinarian

reported to him. Stellenbosch did not see this as a problem.

As Stellenbosch pointed out, he often had to oversee "depart-

ments in areas I know very little about. The secret (is] having

a strong line of communicat ion with the people who report

to you."

The zoo's executive director also did not see Stellenbosch's

lack of animal-care experience as a problem. ·we were look-

ing for anybody with a background that could run a zoo on

a day-to-day basis. We didn't find anybody with an animal

background who could do that. We chose Bob Stellenbosch

because he was the best candidate,• Lau said.

Caring for the Animals Three sets of employees work closely with the animals: veteri-

narians, curators, and zookeepers.

The Veterinarians

Dr. Tim Bernardino Dr. Tim Bernardino, director of Animal Health and Nutrition at City Zoo, was the zoo's head veterinar-

ian, and had been a zoo employee for over 20 years. Eight

full- and part-time employees in the Animal Health and Nu1rition

department reported to him . Veterinarians are responsible for

the health care program for the animals, and they also maintain

all health records. Bernardino was also the •attending veterinar-

ian" for the zoo, a position that carries with it the responsibility

to communicate on a regular basis with the Ministry of Natural

Resources. Part of this responsibility involved bringing question-

able animal deaths to the attention of the Ministry of Natural

Resources. Bernardino was well respected by the international veteri-

narian community, and well-liked by the zookeepers. He was

known to deeply care for all of the animals in the zoo, and kept

up with the latest literature on the best ways to manage and

display animals to maximize their comfort and well-being.

Bernardino's performance as head veterinarian was gen-

erally applauded by senior management. He had received

glowing ratings in his annual performance reviews through-

out his career. For instance, at the end of 2015, Bernard ino

received one of his best performance reviews ever. Robert

Stellenbosch, his direct supervisor, wrote that Bernardino main-

tained "the highest quality of work!" He also wrote that "Tim

is well respected throughou1 the zoo.• Stellenbosch praised

the veterinarian's technical skills, his dependability, and his

tremendous work ethic.

There were occasional negative comments in his reviews,

although these did not seem to weigh heavily in his overall

540 Additional Cases

evaluations. For instance, in his 2012 review, a fonner supervi-

sor wrote, "Tim can be intense and inflexible, causing strained

relat ions with fellow employees." Still, the supervisor noted

that Bernardino "gets along reasonably well" with other zoo

employees. In his 2014 review, the veterinarian was specifically

asked to "focus more on people skills in the department and

with curators." The review also noted that "Tim is strong in his

beliefs, and sometimes needs to temper that once a final deci-

sion is made."

The negative performance appraisal comments were related

to Bernardino's relationships with the curators and zookeep-

ers. He was well respected by the zookeepers, and maintained

good relations with them because their observations of the

animals helped the animals stay healthy. However, some of

the curators felt that Bernard ino empowered the zookeep-

ers too much, so that the zookeepers would sometimes go

around their curators to make complaints about animal care.

Bernardino worried that some of the zookeepers were disci-

plined by their curators when they spoke with him about their

concerns regarding the animals. "People don't feel free to be

open. Discussions don't happen. [There is] control of informa-

tion, control of communications, control of decision making [by

the curators],• he said.

Beth Else, curator of Conservation and Research, saw it

differently. •1 think he empowered the keepers to go around

the supervisors and go to him when they didn't get the answer

that they liked," she said , echoing comments of the other

curators.

Despite his generally good reviews, Bernardino also felt

that he was "alienated from the decision-making process ...

with the curatorial staff and with other administrators." He

sometimes complained the curators were given more weight

than the veterinary staff in decision making about the ani-

mals, even when the health of the animals was in question.

He also felt that his role as attend ing veterinarian, where

he was accountable to the Ministry of Natural Resources,

was •not well defined or understood by those in the zoo

community.•

Bernardino's reviews took a turn for the worse after the

Ministry of Natural Resources released the report of its 2016

surprise investigat ion just three months later, in May 2016.

Stellenbosch gave Bernardino, in writing, a reprimand about

his performance. "We need to have team players, and you

need to work through these issues in a more professional, less

'attacking' manner," the COO's warning stated. Bernardino

was also told that he lacked "team attitude, professionalism,

and judgment.•

This warning was closely followed by the announcement

that Bernardino would share the "attending veterinarian" posi-

t ion with two others: his subord inate, veterinarian Wynona

Singh, and Mammals curator Randi Walker. Although Walker

was also a veterinarian, she was not licensed to practise as

one in the province. In August 2016, Bernardino was told that

he would no longer serve as an "attending veterinarian," and

that Singh would be the sole •attending veterinarian." At about

the same time, Bernardino received a written reprimand, in

which he was accused of "steadily undermining animal curator

Dr. Walker, poor communication skills, and intimidating other

employees.·

Dr. Wynona Singh Dr. Wynona Singh, who reported to Dr. Bernardino, had been a full-time veterinarian at the zoo since

2005. She first joined the zoo in 2003 as a part-time veterinar-

ian. Singh was the veterinarian on call when the giraffe died in

2013 and the sloth bear died in 2012, although she was not

implicated in either death.

Bernardino and Singh often butted heads. In his 2015 evalu-

ation of her, Bernardino recommended that she receive no sal-

ary increase. In January 2016, Bernardino told the zoo's human

resources director that "if she doesn't improve and we keep her,

I'm out of here."

Bernard ino was reflecting on a survey of her performance

he had conducted with the veterinary and animal food staff.

Only 29 percent of them gave her favourable ratings, while

61 percent noted that she had big communicat ion prob-

lems. The zookeepers specifically comp lained that Singh

did not relate well to them and was not always open to their

concerns. Th is led Bernardino to tell her that she "had to

continue to improve some management skills, including com-

munication." Despite negative reviews from her immediate

staff and subordinates, Singh received high marks from the

curators and associate curators, who indicated their full and

unambiguous support of her.

The Curators and Zookeepers Curators make recommendations such as what animals to

acquire, whether animals should be bred, and whether animals

should be lent to other zoos for either breeding or d isplay

purposes. Curators are also responsible for the designing and

planning of animal exhibits, including coming up with ideas for

new exhibits that might be of interest to the public. Although

curators are responsible for the overall well-being of the animals,

they are certainly aware of the marketing and public relations

functions of animal exhibits.

The general curator at a zoo oversees the entire animal col-

lection and animal management and is responsible for strategic

collection planning . Zoos also have animal curators who man-

age a specific section of the animal collection. City Zoo had four

area curators: curator of Fishes, curator of Reptiles, curator of

Birds, and curator of Mammals. Some areas also had associate

curators, such as the assistant curator of Large Mammals and

the assistant curator of Small Mammals.

Senior zookeepers and zookeepers (also called keepers)

report to the curators and work with individual animals, feeding

them, handling them, keeping their cages clean, and looking

after their welfare on a day-to-day basis. Keepers often work

with the same animals for a number of years, so they can grow

quite attached to their animals. Keepers can feel that they

understand more about the welfare of their animals than the

curators.

At City Zoo there was significant tension between the cura-

tors and the keepers. The keepers complained that curators

did not listen to their concerns, and curators complained that

the keepers often went around them to share concerns about

animals with Dr. Bernardino. The curators felt that the keep-

ers should raise all concerns with them, rather than with the

veterinarian.

Randi Walker Randi Walker was curator of Mammals at the zoo. The Mammals department 's 22 full-time employees

(including 14 zookeepers) took care of the zoo's apes, great

cats, bears, elephants, and all hoofed animals. This was the

largest animal department at the zoo, and was twice the size

of the next largest department, the Birds department. All of the

deaths investigated by the Ministry of Natural Resources had

happened in Walker's unit.

The assistant curator of Large Mammals and the assistant

curator of Small Mammals worked under Walker. The assistant

curators were two of the most liked curators at the zoo. They

had excellent animal-care backgrounds, were very aware of

the zoo's communication problems, and knew how to work

effectively with the other employees. They were also respected

by the zookeepers and other curators.

Although curators do not usually have veterinary training ,

Walker had completed her veterinary studies. However, she

was not licensed to practise veterinary medicine in the province.

Her background may have led to her difficult relationship with

Bernardino. Sometimes she tried to second-guess him, and

other times she attempted to overrule his decisions.

Walker was particularly uncomfortable with the relationship

that Bernardino had with the Mammals zookeepers. She felt

that his close relationship to them undermined her. "There

are communication problems with mammal keepers and

[Mammals curator Randi Walker]," one keeper said. "Some

people can talk; other people, if they open their mouth, she

jumps on them. That 's the underlying thing why people talk

to Dr. Tim ."

Gorilla keeper Dale Petiniot noted that while she had no

problem discussing issues with Walker, sometimes keepers

needed to discuss issues with a neutral third party. "It's not

always that we're justified , but sometimes you need to talk

about things, and you don't have a next step, other than the

vet," Ms. Petiniot said.

Additional Cases 541

When zoo officials, responding to the Ministry of Natural

Resources' surprise investigation, tried to investigate the death

of George the giraffe, they quickly discovered that most employ-

ees in the Mammals department would simply not talk about

the event, saying that they feared retribution by Walker. Even

though zoo officials offered immunity from any disciplinary action

in exchange for clarification about what had happened, no one

came forth to take responsibility for putting the two animals

together. "Nobody claimed responsibility,• Andy Yang, curator

of Reptiles and head of the internal investigation, said .

The report of the internal investigation concluded, "The

apparent failure of the mammal keeper staff to inform, discuss,

and plan this introduction with the veterinary staff prior to any

action was unacceptable and compromised the welfare of

the giraffe." Yang's committee made a pointed observation

regarding the Mammals department: "There are significant com-

munication problems in the Mammals department that need

attention. These communications problems have negatively

affected animal welfare."

Xavier Tolson, a human resources consultant hired by the

zoo at the end of 2016 to analyze workplace problems in the

Mammals department, reached many of the same conclusions.

"I do not believe I have ever seen a department as dysfunctional

as the Mammals department [at the City Zoo)." He noted that

there was a lot of conflict between the head curator and the

zookeepers.

Tolson suggested that the keepers had a tendency to try

to bully Walker into seeing their point of view about animal

concerns.

Although most of her subordinates were critical of Walker's

performance, managers at the most senior levels in the zoo

were strongly supportive of her. She was always deferential

to their views, and they felt she was right not to cave in to

employee concerns.

The Biological Program Committee In most zoos, the general curator oversees the work of the cura-

tors, zookeepers, and veterinarians and attempts to resolve any

issue that might come up among the three groups. However,

City Zoo had no general curator. When the zoo hired Robert

Stellenbosch as COO in 2014, he was unable to serve as gen-

eral curator, a role his predecessor had filled, because he had

no previous animal experience.

Shortly after Stellenbosch was hired, Lau announced that

the newly created Biological Program Committee (BPC) would

perform the duties normally handled by the general curator.

The committee consisted of the curators of Mammals, Birds,

Reptiles, and Fishes, an animal behaviour specialist, and mem-

bers of the zoo's veterinary staff. Only the four curators and the

animal behaviour specialist had voting rights on the committee,

542 Additional Cases

however. The curators took turns chairing the monthly commit -

tee, rotating the position every few months. No one else was

allowed to chair the committee.

Not everyone was happy with the new management com-

mittee meetings. Bernardino, who had had a very good rela-

tionship with the former general curator, felt that his authority

was diminished because of the BPC structure. Bernardino also

objected that he was not able to rotate into the role of commit -

tee chair. He complained that the curators did not pay enough

attention to animal-care issues. He also complained that the

curators treated members of the veterinary staff who were on

the committee like second-class citizens. After trying to get

along with the new management structure for about six months,

Bernardino took his concerns about the BPC to the executive

director. Lau dismissed the veterinarian's concerns, suggesting

that communication among committee members was good,

except for some "troublemakers," which Bernardino took to be

a reference to himself.

Beth Else, curator of Conservation and Research at the

zoo, noticed a change in Bernardino's demeanour after the

creation of the BPC. "It seemed in the past that Tim relied on

gentle persuasion to bring people over to his way of thinking.

In recent years, particularly in the past year, Tim has been

more of a disruptive influence at the zoo," Else said . "I don't

want to give the impression that I think Tim is mal icious,

because I don't," Else said . "Tim, in his own mind, thinks he

is doing what is right."

Other employees must have agreed with Else that

Bernardino was trying to do the right things at the zoo . On

February 23, 2017, the zoo staff voted on nominees for

"Outstanding Employee" of the year. Bernardino received the

most votes.

Shockwaves at the Zoo

Head Veterinarian Fired On February 28, 2017, City Zoo dismissed Bernardino from his

$1 02 000-a-year position as head veterinarian. The executive

director said that the dismissal had nothing to do with the 2016

Ministry of Natural Resources inspection, or with issues about

animal care. ''There is no question in my mind that he raised the

level of animal care here at the zoo," Lau explained. "And while

I do have a problem with the way Bernardino dealt with the

Ministry of Natural Resources in the past, the termination was a

result of our concerns over Dr. Bernardino's administrative and

management skills that we had worked with him to address

over the last several years."

Bernardino's dismissal created shockwaves both inside and

outside of the zoo. The local newspaper contacted several well·

known veterinarians throughout the country to find out what

they could do about Bernardino. All of the contacted veterinar-

ians spoke with great regard for the dismissed veterinarian.

Reporters also uncovered previous performance reviews of

Bernardino, which indicated that Bernardino had performed

exceptionally in his work with the animals. Reporters concluded

from their investigation that "The firing of Dr. Bernardino in late

February was the culmination of a year-long struggle between

him and zoo administrators beginning, it appears, with the

veterinarian's frank comments last year during a routine animal-

care inspection by the Ministry of Natural Resources. Those

comments led to an admonition by the Ministry of Natural

Resources that the zoo failed to heed warnings about its ani-

mal-care practices."

The intense press coverage prompted the city to start its

own investigation of zoo administration. City Council felt an obli-

gation to protect taxpayers' money, and recognized that public

confidence in the zoo was at an all-time low because of all the

negative publicity. Council appointed a 14-rnember Citizens'

Task Force in mid-March. The mandate of the task force was

to review zoo finances and operations, including animal care,

and to issue a report within 100 days.

As the task force was getting underway, more scandal

struck the zoo. The local newspaper reported that Executive

Director William Lau had traded in the Jeep he had been given

at zoo expense for a luxury Volvo, also paid for by the zoo .

Similarly, COO Robert Stellenbosch had traded in his Dodge

for a luxury Volvo. The two Volvos were costing taxpayers

$1200 per month.

Members of the public were out raged by this news,

coming just two weeks after Bernardino's firing. One long -

stand ing zoo member emailed the local newspaper that

he was disgusted with zoo adm inistrators: "The firing of

the whistle-blowing vet is enough to make one wonder if the

chimpanzees could not do a better job of running the place.

If anything would make me stop supporting the zoo, it is the

attitude of the zoo director and [chief operating officer]. To

rent Volvos for themselves, to be so wasteful with the dollars

of the taxpayers is tantamount to being part of the low-down

reptile exhibit. "

A Settlement and Resignations at the Top After his dismissal, Bernardino approached the board of direc-

tors, requesting that they meet with him and give him back

his job. The board was feeling under siege because of all the

negative publicity. Bernardino's dismissal seemed to mobilize

community sentiment toward the veterinarian, and against the

zoo's senior management.

In an effort to quiet speculation by community members

about zoo leadership, the board of directors made a settlement

with Dr. Bernardino on May 1, 2017. The agreement reinstated

him to his position of director of Animal Health and Nutrition

of the zoo effective immediately, although he would serve in

this role only as a "consultant," on an "as-needed basis." The

agreement stated that Bernardino was not allowed to be on

zoo grounds while performing his job, and could not enter the

zoo as a private citizen for six months. The agreement prohib-

ited him from discussing "his opinions as to the welfare of the

animals at the Zoo, the circumstances of his termination or

reinstatement of employment, his opinions regarding person-

nel at the Zoo, or any other matters pertaining to the Zoo" with

anyone unless subpoenaed.

Bernardino's consulting position was to last for 18 months.

He would be paid $105 000, plus health and retirement ben-

efits during that time. Under the settlement, he would also

receive $42 815 in back pay, benefits, and attorney's fees.

The board agreed to remove all negative evaluations that were

added to his file in 2016. Bernardino agreed that he would not

file claims of wrongful discharge or breach of contract against

the zoo.

Two weeks after the settlement with Bernardino, the zoo

board announced that Executive Director William Lau would

retire immediately, after 25 years at the zoo. The board also

announced that COO Robert Stellenbosch would resign once

a new management team was in place.

The Findings of the Citizens' Task Force The Citizens' Task Force presented its findings to City Council

at a public meeting held on July 8, 2017. The task force divided its presentation into three parts: a discussion of the employee

survey they had commissioned; a presentation of what they had

learned about the politics of zookeeping; and a discussion of

other observations about how the zoo operated.

Employee Survey The Citizens' Task Force asked Maynard & Associates, a Toronto-based employee relations consulting firm, to determine employee morale. Exhibit 3 summarizes the

results of the survey, including separate results for the Mammals

department. Maynard & Associates have collected baseline data as a result of their many employee surveys, and those data are

also included.

On many dimensions, City Zoo employees were more critical than the average employee in Maynard's surveys. Zoo employ-

ees complained about the lack of effective leadership, poor

communication, and the scarcity of teamwork. Only half of the

employees said there was open and honest communication

at the zoo, and many employees noted that this lack of com-

munication led to rumours and myths that spread throughout

the zoo.

Employees said that they did not feel that they could talk

freely to their supervisors about job-related problems, and they

Additional Cases 543

gave low marks to supervisors for resolving employee prob-

lems. Employees also gave low marks to supervisors for letting

employees know what was expected of them. Supervisors

were also criticized for not considering differing opinions, and

a number of employees noted that they feared punishment if

they expressed contrary opinions. Employees also expressed

the expectation many employees placed on each other that "if

you are not with us; you are against us,• which created a lot of

divisiveness across the zoo.

Despite the low morale uncovered by the survey, results

indicated that employees loved working at the zoo, were fairly

paid, and felt that they had been trained appropriately to do

their jobs. However, they wanted to see an end to the politi-

cal, communication, and leadership problems that dominated

day-to-day work at the zoo.

The Politics of Zookeeping Three members of the Citizens' Task Force were asked to d iscuss the events that had occurred at City Zoo with respected members of the zoo

community throughout North America. Dr. Christopher Bondar,

the associate veterinarian at the Central Canada Zoo, sug-

gested that it was not surprising that there were tensions

between zoo management and the veterinarians. "The zoo

business in general, because people's emotions tend to run

high about animals and their welfare and because it is a small

community, tends to have a lot of politics," said Dr. Bondar,

who added that he has not encountered such problems at

his own zoo. It can be hard to understand all of the politics at

zoos because "so many businesses are about paperwork or

industry or goods that don't spawn the type of passion people

have for living animals."

Members of the task force spoke with Dr. Philip Robinson, a

former director of veterinary services at the San Diego Zoo, and

author of the book Life at the Zoo: Behind the Scenes with the

Animal Doctors, and asked him about the relationship between

curators and veterinarians. "The perception that [veterinarians]

should stick to sick animals and leave the other issues to the

other people on staff-traditionally, this is sort of a turf battle

that has more to do with management style than anything that

benefits the animals," he told them.

Other experts supported Dr. Robinson's position. They told

the task force that it is crucial for veterinarians to interact with

keepers to understand the needs of individual animals. "If the

curator says to the keeper, 'You only tell me what's happen-

ing,' then the veterinarian is sort of between a rock and a hard

place to know when the animal is on the road to a problem, or

already is there and has the problem,• said Randolph Stuart,

the executive director of the Canadian Association of Zoo

Veterinarians. "That's why most vets will keep a good rapport

with keepers."

544 Additional Cases

EXHIBIT 3 Employee Attitude Survey of City Zoo, and Some Comparisons

Category Question

Pay My compensation is satisfactory and fair compared with that of other employees who work here.

My compensation is satisfactory and fair compared with what I would earn at similar companies.

Recognition My supervisor recognizes and provides positive feedback for work well done.

Supervision My supervisor treats me fairly.

My supervisor helps me perlorm my work effectively.

Communication I feel comfortable expressing my ideas to my supervisor and other leaders in the company.

Leaders communicate pertinent information to

employees.

Empowerment I am free to make decisions that affect my work without consulting with my supervisor.

My ideas are used when managers make decisions that affect the company.

Job Satisfaction Overall, the company is a good place to work.

Management The managers here are honest, fair, and ethical.

Participation Managers seek employee input into the way work is done here.

Teamwork Employees work together as a team here.

Teamwork is encouraged here.

Training I receive adequate job-related training to do my job.

There are plenty of opportunities here to learn additional skills.

Work Demands The workload is fair and reasonable.

Experts in the area of zoo administration suggested that

many zoo administrators don' t appreciate the passion that

veterinarians b ring to t heir work. Veterinarians are chiefly

concerned w ith animal welfare, w hile the zoo administration

is also concerned w ith fundraising, providing an experience

for zoo v isitors, running successfu l g ift shops and snack

bars, and making sure parking lots are adequately designed

for visitor load .

Dr. Mark Cornwall, the director of animal health and attend-

ing veterinarian at the Maple Leaf Zoo, stressed the need for

good communication among all zoo employees. The Maple Leaf Zoo was sued by an employee under w histle-b lower protection

legislation. The employee was demoted and harassed after

she complained to government officials about unsafe condi-

tions at the zoo. "Everybody kind of learned something from

Percentage of Employees Who Agree or Strongly Agree with Statement

City Mammals Other Other

Zoo Department Zoos Organizations

80 81 82 75

81 81 82 74

63 57 68 72

43 43 63 63

41 39 70 70

41 35 71 73

51 48 55 74

55 45 67 69

49 41 65 70

68 60 70 77

45 39 76 79

53 45 68 77

59 53 79 79

55 50 75 75

85 83 81 76

85 78 81 74

75 74 73 79

that," said Dr. Cornwall. "Animal welfare comes first ," he said .

•zoo veterinarians are really the ones who are in charge of that.

Veterinarians tend to champion those causes because that is

what they are expected to do. You have different perspectives

and opinions on those things, but the key is to sit down with

all the folks.• He added, "Zoos are complicated organisms and

organizations. Open communication can improve the situation,

however."

Other Issues Raised by the Task Force During its presenta- tion, the Citizens' Task Force identified a number of other issues

of concern, and they briefly reviewed these for council.

• Organizational culture. The task force found that

lack of trust was a big issue among staff. They also

found a •culture of fear" and noted that even though

retaliation was often subtle, it was definitely there.

In particular, keepers were afraid to admit actions or

mistakes, even when immunity was offered. The task

force expressed concern that many of the zookeepers

were too focused on their own specific job duties and

did not "see or support the 'big picture' of the zoo as

both a wildlife conservation facility and a business."

• Relationship among curators, veterinarians, and

zookeepers. Some curators were found to be good

at managing animals but weak at managing people.

The keepers complained that curators did not always

respond in a timely manner to their proposals and

suggestions for improving animal care. Veterinarians

had some of the same complaints as the keepers-

that curators did not always see the need to consult

with veterinarians on animal management issues. The

task force also noted that some keepers and cura-

tors held grudges that they might not be able to put

behind them.

Curators complained that veterinarians undennined

them through direct contact with the keepers. How-

ever, the task force noted that there was no defined

communication path for keepers to raise concern with

the veterinary staff. Moreover, experts throughout the

zoo veterinary world stressed the importance of open

communication between keepers and veterinarians so

that vets can fulfill their obligations under the Fish and

Wildlife Conservation Act.

The task force concluded that there was a lack of

communication among keepers, veterinarians, and

curators that led to questionable care standards for

the animals. Because departments of the zoo did not

work closely together, there was not a good system of

checks and balances to maintain appropriate care.

• The Biological Program Committee. The Citizens'

Task Force was particularly critical of the BPC, sug-

gesting that many of the zoo's problems resulted from

the creation of the BPC. The BPC created a mutual

admiration society for the curators, and allowed the

curators to overtook the concerns of keepers and the

veterinarian staff. The board also found that there was

no real accountability for decisions because of the

committee structure.

• Organizational structure. The task force raised a num-

ber of questions about the current structure of the zoo,

noting that communication issues, lack of teamwork,

and lack of coordination were all factors that resulted

in animal deaths, and were likely related to the current

structure. During their investigation, they had asked

Lau whether all individuals directly involved with animal

Additional Cases 545

care had reported to him. He claimed they did, until

a member of the task force, pointing to the organiza-

tional chart (see Exhibit 4), noted that the veterinarians

and veterinarian technicians reported to the COO.

"It was largely the size of the group, and the

number of people reporting to different people. We

were trying to divide the zoo up so that neither Bob

nor I [had too many]. " Lau explained. "Money being

what it is, we didn't want another high management

position.•

• Employee conduct. The task force found that there

was a "lack of consistency, unifonnity, account-

ability, and decisiveness in the enforcement of stan-

dards of conduct across departments" and that the

Employee Relations department was not good at

enforcing standards of conduct. A number of employ-

ees complained that those who worked hard were

often expected to compensate for employees who

underperfonned.

Employees are disciplined through a "five-step"

process. An employee can be terminated if he or she receives five written infractions within a 12-month

period . The task force found this process so burden-

some that employees were almost never tenninated.

In fact, Jennifer Rsher, employee relations director,

told the task force that •no animal keepers or other

non-managerial employees had been fired in the past

20 years."

A New Executive Director Takes Over Emma Breslin began her position as the new executive direc-

tor last week, nine months after the previous executive director

retired.

Breslin's p revious position was as executive d irector

for the past 10 years at Maritimes Zoo, a smaller zoo with

51 employees, a general curator, and two cont ract veteri-

narians. Breslin had been hired by Maritimes Zoo to reunite

a divided staff. She is known as a consensus leader, and

at Maritimes Zoo she increased communication, improved

supervisory skills, and taught employees to value each oth -

er's contributions to the successful operation of the zoo.

Breslin was also successful in raising awareness among the

community about why financial support from the public was

so important to the zoo.

Breslin faces a large public relations problem as she begins

her new job. She knows that much of the zoo's revenue is

dependent upon public support. The next tax levy vote is three

months from now. The zoo also raises significant revenue

through the "Friends of the Zoo" program, an annual subscrip-

tion program where people donate money to the zoo . She

EXHIBIT 4 Organizational Chart of City Zoo, January 2014

Oire<tor of Animal Health and Nutrition!

Head Veterinarian

Finance and Accounting

VeterinariMs and Veterinary Tedlnlclans

Nutritionists

Assistant Oire<tor and COO

Empio)'ff Relations

Maintenance and Horticulture

Security

Educational Services

President. Board of Directors

Board of Directors I

Executive Director

ioiogicai Program I Committee

Biological Programs

Curator of Mammals

Interpretive Services Volunteers

Zookeepers

Curator of Reptiles

ZookHpers

Curator of Birds

ZookHpers

Curator of Fishes

Zookeepers

Curator of Conservation and ResNrch

Researchers and Research

Assistants

Marketing and Development

Visitor Services

Adverti~ng

Pubik Relations

Fundralslng

Construction

Catering

Customer care

Gift Shop

Visitor Transport

u, .. CII

> Q. Q. ;:;; 0 :, ., 0 ., ::: "'

needs to restore community trust. At the same time, she needs

to grow zoo attendance levels, which have fallen in the past six

months, and develop a strategic plan for the zoo.

Breslin also faces a very divided and demoralized staff. She

has reviewed what was written in the press and familiarized

herself w ith the C itizens' Task Force review. She knows she

needs to bring some peace and stability to employee relations.

Her most difficult task will be to unite the staff. She needs to

build staff morale and gain their trust. She wonders how she will

accomplish these goals over the next year. The outline of what

she intends to do over the next six months to get things back

on track is to be presented to the board in two weeks.

Additional Cases 54 7

Discussion Questions 1. What can Emma Breslin do to restore trust and morale

among the employees?

2. Should Breslin promote Wynona Singh to head (and attending) veterinarian or hire someone from outside?

3. What changes to the organizational structure could Breslin make to help foster a more positive work environment?

4. How might trust be restored among community mem· bers so that a positive outcome for the tax levy might occur?

ENDNOTES

Chapter 1

1 Vignette based on J. Castaldo, "The Last Days of Target, • Canadian Busi11ess, January 2016, http:lfwww.canad ianbusiness.co m/ the-last-days-of-target-canada/ .

2 "Su rvey: Few CFOs Plan to Invest in I n terpersonal Skil ls Developmen t for Their Teams," Accountemps news re lease, June 19 , 2013, http://accountemps.rhi .mediaroom.com/ 2013- 06- J 9 -Survey-Few-CFOs-Pl a n-to-1 nvest-in-1 nterpersonal -Ski I Js. Development-for-Their-Teams.

3 These co m panies were nam ed in the JOO Top Em ployers for 201 7. See http://www.canadastop100.com/ nationalf; http://www. ca nadastop 100.co m/ atlant ic/; a nd h ttp://w,,~v.canadastop JOO. co m/ skf.

4 I. S. Fulmer, B. Gerhart, and K. S. Sco tt, "Are the 100 Best Better? An Empirical Investigation of the Relationsh ip between Being a 'Great Place to Work' and Firm Performance,• Personnel Psychology (Winter 2003), pp. 965-993.

5 S. E. Humphrey, J. D. Nahrgang, and F. P. Margeson, "Integrating Motivatio nal, Social, and Contextual Work Design Features: A Meta-analytic Summary a nd Theoretical Exten., ion of the \<\fork De.sign Literature, • Journal of Applied Ps)'chology 92, no. 5 (2007) , pp. 1332- 1356.

6 E. R. Burris, "The Risks and Rewards of Speaking Up: Managerial Responses to Employee Voice,· Academ)' of Ma11ageme111 Jo11mal 55, no. 4 (2012), pp. 851- 875.

7 T. L. Miller, C. L. Wesley II, and D. E. 'A'illiams, "Educati ng the Minds of Caring Heart.<: Comparing the Views of Practitioners and Educators on the Importance of Social Entrepreneursh ip Competencies," Academy of Ma,iagement Learning & Education 2, no. 3 (2012), pp. 349- 370.

8 H. Aguin i.< and A. Glavas, "\.Vhat 'A1e Don't Know about Corporate Social Responsibility: A Review and Research Agenda,• Jo11mal of Ma11ageme11t (July 2012), pp. 932- 968.

9 Vignette ba.<ed on J. Castaldo, "The Last Days of Target,• Canadian Busi11ess, Ja nuary 2016, http:lfwww.ca nadianbusineS-<.com/ the-I a.,t -days.of -target -canada/ .

10 See, for example, C. Heath and S. B. Sitkin, "Big-8 versus Big-0: What Is Orga11izational about Organizational Behavior?" Joun,al of Organizational Behavior 22 (2001 ), pp. 43-58. For a review of what one eminent researcher believes should be included in orga· nizationa l behaviour, based on survey data, see J. B. Miner, ""The Rated Importance, Scientific Valid ity, and Practical Usefulness of O rganizational Beh avior Theories: A Quantitative Review,* Academy of Ma11age111ent Leami11g & Ed11catio11 2, no. 3 (September 2003), pp. 250- 268.

11 Statistics Canada, "Key Small Business Statistic:.<- August 2013, • m odified September JO, 2013, h ttps://"~vw.ic.gc.ca/eic/ site/ 061. nsf/eng/h_030J 8.h tml.

12 C. R. Farquh ar a nd J. A. Longair, Creating Higlt·Performance Organizations with People, Report R 164- 96 ( Ottawa: T he Conference Board of Canada, 1996).

13 D. M. Roussea u, The Oxford Handbook of Evidence-Based Ma11agement (Oxford Library of Psychology) (New York: Oxford University Pre.SS, 2014).

548

14 J. Surowiecki, "The Fata l-Flaw Myth; New Yorker, Ju ly 31. 2006, p. 25.

15 V. Monga, "What Is All That Data \<\forth ?" Wall Street Journal, October 13, 2014, pp. 83, 86.

16 E. Dwo.skin and Y. Koh, "Twitter Pushes Deeper into Data,· Wall Street Journal, Apri l 16, 2014, p. 82.

17 N. Bloom, R. Sadun, and J. Van Reen an, "How Three Essential Practices Can Address Even the Most Complex Global Practices,•

Harvard Business Review, November 2012, pp. 77-82.

18 C. Cole, "Changing Neurobiology with Behavior, • Association for Psychological Science Observer 27, no. 6 (2014), pp. 29- 32.

19 \.V. Isaacson, "Of Ma n a nd Mach ine,· Wall Street Journal, September 27-28, 201 5, pp. CJ- C2.

20 Based on W. Chua ng and B. Lee, "An Em pi rica l Eval uat ion of the Overco nfidence Hypothesis, · Journal of Banki11g and Fi11ance, Septem ber 2006, pp. 2489- 2515; and A. R. Drake, J. \.Vong, and S. B. Salter, " Empowerm ent, Motivation, and Performance: Examining the Impact of Feedback and Incentives on Nonmanagernent Employee.\" Behavioral Research in Accounting 19 (2007), pp. 71 - 89.

21 Vignette based on J. Castaldo, "The Last Days of Target,• Ca11adinn Business, January 2016, h ttp://www.canad ianbusiness.com/ the· last -days-of. ta rget -can ad a/ .

22 Vignette based on J. Castaldo, "The Last Days of Target,• Ca11adinn

Busi11ess, January 2016, http:lf,vww.ca nadia nbusiness.com/ the- I as t -days-of· target -ca nada/ .

23 M. Strauss, "Lowe's Ca nada Looks To Bu ild Brand Aware ness Amid Rona Takeover,• Globe a11d Mail, May 24, 2016, https://www. theglobea ndmail.com/ report-o n-busine.ss/ Jowes-canada-looks- to-bui Id-brand-awareness-amid-ro na-takeover/ artide30J 3 2169/; D. Flavelle, "Ro na See., Growth Here: Home Reno Sa les Flat dur- ing Make-o r-Break Season but Ca nadian Retailer Keeps Faith in Divers ificat ion: Toronto Star, April 20, 2011, p. Bl; and N. Van Praet, "Rona Shares Rise To Price Offered By Lowe's Two Years Ago,· Financial Post, August 27, 2014.

24 See, for exam ple, R. R. Thom as Jr., "From Affirm ative Action to Affirming Diversity,· Harvard Business Review, March- April 1990, pp. 107- 11 7; B. Mandrell and S. Kohler-Cray, "Managem ent Development That Values Diversity: Perso1111el, Ma rch 1990, pp. 41 - 4 7; J. Dreyfuss, "Get Ready for the New Work Force,• furttme, April 23, 1990, pp. 165- 181; and I. \.Vielawski, "Diversity Makes Both Dollars and Sense, • Los Angeles Times, May 16, 1994, p. 113.

25 Based on h ttp:lfW\,~v.eluta.ca/ jobs-at-sasktel#divers ity:diversity- more; http://www.sasktel .co m/ wps/ wcm/ co nnect/ content/ ho me/ abou t-sasktel/ news/ 2012/ sasktel-co nnects-8-m ore-fi rst- n a t io ns-to-hs-i n te rnet; h ttp:// itac.ca/ i taco n Ii ne/ a ug09 _ o nline_full.htm l; and h ttp://www.am msa.com/ publ ica tions/ wi ndspeaker / aborigi na 1-people-wi I I-make-nearly-one-quarter- saskatchewan0fc,E2o/o800/o99s-population.

26 June 2011 figures, as reported a t http://W\,w.statcan.ge.cafsubjec:ts- sujets/ Jabour-travail/ Jfs-epa/ t J 10708a2-eng. htm .

27 I. 0. Karpen, "Service. Dominant Orientation: Measurement and Impact on Performance Outcomes,· Journal of Retaili11g 91, no. I (201 5), pp. 89- 108.

28 E. Jaffe, "Using Tech no logy to Scale the Scienti fic Mounta in: Association for Psychological Scie11ce Observer 27, no. 6 (2014), pp. 17- 19.

29 E. J. Hirst, "Burnout on the Rise: Chicago Tribune, October 19, 2012, h ttp://articles.chicagotribune.com/ 2012· 10-29/ busine.ss/ ct-biz. 1029-employee-burnout-20121029 _ l _employee-burnout- herbert-freudenberger-employee-stress.

30 S. Shellenbarger, "Single and Off th e Fast Track,• Wall Street Joumal, May 23, 2012, pp. DI, 03.

31 M. Mithel, "v\lhat \<\lomen Want, • Business Toda)', March 8, 2013, h ttp://busi nesstoday.intoday. in/ story/ careers -work-Ii fe-bal ance- women/ I/ 193135. htm l.

32 Based on C. Atchison, "Secrets of Canada's Best Bosses, · PROFIT, February 16, 2011 , h ttp://\\~Vw.profitguide.com/ manage-grow/ leadership/secreL<-of-canada•/oE20fc,80o/o99s-best-bosses-30084.

33 F. Luthans and C. M. Youssef, •Emerging Positive Organizational Behavior,• Jounial of Management, June 2007, pp. 321- 349; C. M. Yous.<ef and F. l..uthans, "Posit ive Organizational Behavior in the Workplace: The Impact of Hope, Optimism, and Resilience,· Joumal of Management 33, no. 5 (2007) , pp. 774- 800; J. E. Dutton and S. Sonenshein, .. Positive Organizational Scholars hip," in Encyclopedia of Positive Psychology, ed. C. Cooper a nd J. Barling (Thousand Oaks, CA: Sage, 2007); A. M. Saks and J. A. Gruman, "'O rgan izat iona l Socializatio n and rositive O rgan izat iona l Behaviour: Implications for Theory, Research, and Practice," Ca11adian Journal of Administrative Sciences 28, no. I (2011 ) , pp. 4- 16; and E. K. Loway, "Positive Organizational Scholarship; Ca11adian Journal of Administrative Sciences 28, no. I (2011 ) , pp. 1- 3.

34 L. M. Roberts, G. Spreitzer, J. Dutton, R. Quinn, E. Heaphy, and B. Barker, •How to Pl ay to Your Strengths, · Harvard Business Review, January 2005, pp. 1- 6; and L. M. Roberts, J. E. Dutton, G. M. Spre itzer, E. D. Heaphy, and R. E. Quin n, · composing the Reflected Best-Self Portrait: Becoming Extraordinary in Work Organizations,· Academy of Manageme11t Review 30, no. 4 (2005), pp. 712-736.

35 •Five Jobs That \<\lon't Exist in JO Years .. . And One New litle You' ll Start to See: HR Magazi11e, February 2014, p. 16.

36 D. M. Mayer, M. Kuenz i, R. Greenbaum, M. Ba rdes, and R. Sa lvador, •How Low Does Eth ica l Leadership Flow? Test of a T rickle. Down Model," Organizational Behavior a,id Human Decisio11 Processes 108, no. I (2009), pp. 1- 13; and A. Ardichvili, J. A. Mitchell, and D. Jondle, · characteristics of Ethical Busines.< Cultures,• Joumal of Busi11ess Ethics 85, no. 4 (2009), pp. 445- 451.

37 D. Meinen, •Managers' Influence, " HR Magazi11e, April 2014, p. 25.

38 See, for example, P. M. Podsakoff, S. B. MacKenzie, J. B. Paine, a nd D. G. Bachrach, "Organizational Citizensh ip Behaviors: A Critical Review of the Theoretical and Empirical Literature and Suggestions for Future Research,• Joumal of Ma11agement 26, no. 3 (2000), pp. 543-548; and S. W. Whiting. P. M. Podsakoff, and J. R. Pierce, • Effects of Task Performance, Helping, Voice, and Organizational Loyalty on Performance Appraisal Ratings,• Joumal of Applied Psycholog,, 93, no. 1 (2008), pp. 125- 139.

39 L. Nguyen, "Canadian Economy Loses $ J 6.68 Annually Due to Absenteeism,• Toronto Star, September 23, 2013.

40 W. Hoge, "Sweden's Cradle-to-Grave \<\lelfa re StarL< to Get JI),· /11temational Herald Tribune, September 25, 2002, p. 8 .

41 T.-Y. Park and J. D. Shaw, "'Turnover Rates and Organizationa l Performance: A Meta-ana lysis,• Joumal of Applied Psycholog,, 98 (2013), pp. 268- 309.

42 A. Adkins, •Millennials: The Job-Hopping Generation: Busi11ess Jouma/, May 12, 2016, http://www.gallup.com/ businessjourna l/ 1914 59/ mi I lennials-job-hopping-generation.aspx.

43 · why This CEO Is Helpi ng 20•/o Of His Emp loyees Find New Jobs By Next Yea r: Fast Company, February 27, 2017, https://

Endnotes 549

W\,~v.fastcom pany.com/ 3068481/why-this-ceo-is-helpi ng-20-of- his-employees-fi nd-new-jobs-by-next-year.

44 M. Casey-Campbell and M. L. Matten.<, "Sticking It All Together. A Critical Assessment of the Croup Cohesio n. Performance U terature., " Jnteniatio,ial Journal of Management Reviews 11, no. 2 (2008), pp. 223- 246.

45 X. Zhao and A. S. Mattila, "Exa mi ning the Spillover Effect of Frontl ine Employees' \,\fork-Family Conflict o n Their Affective Work Attitudes and Customer Satisfaction,• lntemational Joumal of Hospitality Manageme11t , June 2013, pp. 310- 315.

46 Based o n B. X. Chen, •1Pho ne Sales in Ch ina Bolster Apple Ea rn ings; New York Times, Jan uary 27, 2015, http://www. nyt i mes.com/ 2015/01 / 28/ technology /apple-quanerly-earnings. html ?_r=O; C. Duhigg a nd K. Bradsher, •How U.S. Lost Ou t o n iPhone Work, · New York Times, January 22, 2013, pp. A I, A22- A23; H. Gao, "How the Apple Confro ntation Divides China, · Atla11tic, April 8, 2013, http://"~'~v.thea tlantic.com/ ch ina/ arch i ve/ 201 3 / 04 / how-the-apple-confrontation -divides- chi na/ 274764 / ; and A. Satariano, •Apple Slowdown Th reatens $30 Bill ion Global Supp lier V-1eb, • Bloomberg, h ttp://w\\~v. b loom berg.com/ news/ 2013-04-18/ appl e-sl owdown-threatens- 30-bi I I ion-global-supplier-web-tech.htm I.

47 M. Taes, •1f I Could Have More Data . .. : \,Va/I StreetJouma/, March 24, 2014, p. RS; S. Thurm, •1t's a Whole New Data Game,• ',,\fall Street Journal, February JO, 2015, p. R6; and J. Willhite, •Getting Staned in ' Big Data',• Wall Street Joumal, February 4, 2014, p. 87.

48 R. E. Quinn, Be,10nd Rational Management: Masteri,ig the Paradoxes a11d Competing Dema11ds of High Performance (San Francisco: Jossey-Bass, 1991); R. E. Quinn, S. R. Faerman, M. P. Thompson, and M. R. McGrath, Becoming a Master Manager: A Competet1cy Framework (New York: Wiley, 1990); and K. Cameron and R. E. Quinn, Diagnosi11g and Changi11g Organizational Culwre: Based on the Competi11g Values Framework ( Reading. MA: Addison \,Vesley Longman, 1999).

49 R. E. Quinn, S. R. Faerman, M. P. Thom p.,on, and M. R. McGrath, Becoming a Master Manager: A Competency Framework (New York: \<\liley, 1990) .

50 D. Maley, · canada's Top Women CEOs, • Maclean's, October 20, 1997, pp. 52 passim.

Chapter 2

1 Vignette based on J. Vomiero, •on Her Second Dragon's Den Season, Michele Romanow \¥ill Continue Bri nging Tech The Forefront: Mobilesyrup, October 8 , 2016, http://mobilesyrup. com/ 201 6/ 10/ 08/ o n-her-second-dragons-den -season-m ichele- romanow-wi 11-conti nue-bringing-tech-the-forefront/; J. Pach ner, •Michele Romano,v's Entrepreneurial Secret? Launch Now, Fuc Later, " Canadian Busi11ess, June 2, 2016, http://"~'~v.canadianbusiness. com/ leadersh ip/ michele-romanow/ .

E. Bern.stein, • •Honey, You Never Said . .. ;· Wall Street Joumal, March 24, 2015, pp. DI. 04.

K. C. Yam, R. Fehr, and C. M. Barnes, "Morning Employee.< Are Perceived as Better Employees: Employees' Stan limes Influence Supervisor Performance Ratings.• Journal of Applied Ps)'clwlogy 99, no. 6 (2014), pp. 1288- 1299.

J. Dwyer, "\<\fitness Accounts in Midtown Ham mer Attack Show the Power of False Memory; New York Times, May 14, 2015, http:// W\Vw.nytimes.com/ 2015/ 05/ 15/ nyregion/witness-accounts-in-mid- town·hammer·attack-show.the·power-0f.false· memory. hunl? _ r= 1. G. Fields a nd J. R. Emshwiller, •Long after Arre.,ts, Records Live On; ',,\la/I Street Jou ma I, December 26, 2014, pp. A I, A JO.

550 Endnotes

6 S. S. Wang, "The Science of Standing Out,• Wall Street Journal, March 18, 2014, pp. DI , 04.

7 E. Zell and Z. Krizan, "Do People Have Insight into Their Abilities? A Metasynthesis;" Perspectives on Ps)1cl1ological Science 9, no . 2 (2014), pp. 111- 125.

8 E. Demerouti, D. Xanthopoulou, I. Tsaousis, and A. B. Bakker, "Disenta ngl ing Task and Contextual Performance," Journal of Perso1111el Psychology 13, no. 2 (2014), pp. 59- 69.

9 G. r. Goodwin, J. Piazza, and P. Rozin, "Moral Character Predominates in Person Perception and Evaluation," Journal of Perso11ality and Social Psychology 106, no. I (2014 ), pp. 148- 168.

10 P. Harvey, K. Madison, M. Ma rti nko, T. R. Crook, and T. A. Crook, "Attribution Theoiy in the Organizational Sciences: The Road Traveled and the Path Ahead,• The Academ)' of Management Perspectives 28, no. 2 (2014), pp. 128 - 146; and M. J. Martinko, P. Ha rvey, and M. T. Dasboro ugh, "Attributio n Theory in the Organizational Sciences: A Case of Unrealized Potential,· Journal of Organizational Behavior 32, no. I (2011 ), pp. 144- 149.

11 C. M. de Melo, P. J. Carnevale, S. J. Read, and J. Cratch, "Reading People's Minds from Emotion Expressio ns in Interdependent Decision Making,• Journal of Perso11ality a11d Social Psrcholog)' 106, no. 1 (2014), pp. 73- 88.

ll J.M. Moran, E. Jolly, and J. P. Mitchell, "Spontaneous Mentalizing Predicts the Fundamental Attribution Error,• Journal of Cognitive Neuroscie11ce 26, no. 3 (2014), pp. 569- 576; and D. R. Stadler, "Competi ng Roles for the Subfoctors of Need for Closure in Committing the Funda mental Attribution Error," Personality and /11dividual Differe11ces 47, no. 7 (2009), pp. 701- 705.

13 See, for instance. N. Epley and D. Dunning, "Feeling 'Holier Than Thou' : Are Self-Serving Assessments Produced by Errors in Self- or Social Prediction?" Journal of Perso11ality a11d Social Psychology 79, no. 6 (2000), pp. 861- 875; M. Goerke. J. Moller, S. Schulz.Hardt, U. Napiersky, and D. Frey, "'It's Not My Fault- But Only I Ca n Change It' : Counterfoctual and Prefoctual Thoughts of Managers,· Journal of Applied Psrchology 89, no. 2 (2004), pp. 279- 292; and E. G. Hepper, R. H. Gra mz.ow, and C. Sedikides, "Ind ivid ual Differences in Self-Enhancement and Self-Protection Strategies: An Integrative Analysis," Journal of Perso11ality 78, no. 2 (2010), pp. 781 - 814.

14 N. Epley and D. Du nning, "Feeling 'Ho lier Tha n Thou': Are Self-Serving Asses.,ments Produced by Erro rs in Self- or Social Prediction?" Journal of Per,;onalit)' and Social Psychology 79, no. 6 (2000), pp. 861 - 875.

15 Ba.<ed on N. Ha ll, "Lawyer Awa rded $100,000 by B.C. Human RighL<Tribunal for Discrimination," Va11couverS1m, July 18, 2011; a nd Gicl111ru v. Tlie Law Societ)• of British Columbia (No. 9), 201 I BC H RT 185, https://www.can lii.org/en/ bc/ bch rt/ doc/ 2011/ 2011 bchrti85/ 2011bchrti 85.html.

16 See P. Rosenzweig, 71,e Halo Effect (New York: Free Press, 2007); I. Dennis, "Halo EffeCL< in Grading Student Projects,• Journal of Applied Psrclrology 92, no. 4 (2007), pp. 1169- 1176; C. E. Naquin a nd R. 0 . Tynan, "The Tea m Ha lo Effect: Why Teams Are Not Blamed for Thei r Failures,• Journal of Applied Psychology, April 2003, pp. 332- 340; and T. M. Bechger, G. Maris, and Y. P. Hsiao, "Detecting Ha lo Effects in Performance-Based Evaluations,· Applied Psrchological Measureme11134, no. 8 (2010), pp. 607- 619.

17 J. L. Eberh ard t, P. G. Davies, V. J. Pu rdie-Vaughns, a nd S. L. Johnson, "Looking Deathworthy: Perceived Stereotypica lity o f Black Defendants Predicts Capital-Sentencing Outcomes," Psyclrological Scie11ce 17, no. 5 (2006), pp. 383- 386.

18 A. S. Rosette, G. J. Leonardelli, a nd K. v,.1. Phill ips, "The \.Vhite Standard: Racial Bias in Leader Categorization,• Journal of Applied Psyclrolog)' 93, no. 4 (2008), pp. 758-777.

19 Based on A. C. Kay, M. V. Day, M. P. Zanna, and A. D. Nussbaum, "The Insidious ( and Ironic) Effects of Positive Stereotypes,• Journal

of E>petime11tal Social Psyclrolog)' 49 (2013), pp. 287- 291; J. 0. Sly and S. Cherya n, "V,.lhen Compliments Fail to Flatter: America n Individualism and Respo nses to Positive Stereotypes," Journal of Personality a11d Social Psychology 104 (2013), pp. 87- 102; M. J. Tagler, "Choking Under th e Pressure o f a Positive Stereotype: Gender Identificatio n a nd Self-Consciousness Moderate Men's Math Test Performance," Journal of Social Psrclrolog)' 152 (2012), pp. 401 - 416; M.A. Beasley and M. J. Fischer, "\.VhyThey Leave: The Impact of Stereotype Threat on the Attrition of Women and Minorities from Science, Math and Engineering Majors," Social Psrcl1ology of Ed11catio11 15 (2012), pp. 427-448; and A. Krendl, I. Gainsburg, and N. Ambady, "The Effects o f Stereotypes a nd Observer Pres.sure o n Athletic Performance,• Journal of Sport & Exercise Psychology 34 (2012), pp. 3- 15.

20 K. A. Martin, A. R. Sinden, and J. C. Fleming, "Inactivity May Be Hazardous to Your Image: The EffeCL< of Exercise Participation o n Impression Formation," Joumal of Sport & Exercise Psyclrolog)' 22, no. 4 (December 2000), pp. 283- 291.

21 F. Yua n a nd R. \.V. \.Vood man, "Innovative Behavior in th e \.Vorkplace: T he Ro le o f Perfo rma nce and Image O utco me Expectations,· Academy of Manage111e11t Joun,al 53, no. 2 (2010), pp. 323- 342.

22 J. K. Harter, F. L. Schmidt, J. W. Asplund, E. A. Killham, and S. Agrawal, "Causal Impact of Employee \.Vork Perceptions on the Bottom Line of O rganizations," Perspectives on Psychological Science 5, no. 4 (2010), pp. 378- 389.

23 Y. H. Kim, C. Y. Chiu, and Z. Zou, "Know Thyself: Misperceptions of Actual Performance U nderm ine Achievement Motivation, Futu re Performa nce, a nd Subjective Well-Being,· Journal of Per,;onalit)• a,1d Social Psyclrolog)' 99, no. 3 (2010), pp. 395- 409.

24 H. G. Heneman Ill and T. A. Judge, Staffi11g Organ izat ions (Middleton, WI: Mendota House, 2012).

25 J. Willis and A. Todorov, "First Impressions: Making Up Your Mind after a lOOms Exposure to a Face, • Psychological Scie11ce, July 2006, pp. 592- 598.

26 N. Eisenkraft, "Accurate by \.Vay o f Aggregation: Should You Trust Your Intuition-Based First Impressions?" Journal of £>·perime11tal Social Psrclrology, March 2013, pp. 277-279.

27 See, for exa mple, K. F. E. Wong and J. Y. Y. Kwong, ' Effects of Rater Coa ls o n Rating Patterns: Evidence from a n Experimental Field Study,• Journal of Applied Psrclrology 92, no. 2 (2007), pp. 577-585; a nd S. E. DeVoe and S. S. Iyengar, "Managers' T heo ries of Subordina tes: A Cross-Cu ltu ral Exa mi na tion of Ma nager Pe rceptions of Mo tiva tion a nd Appra isa l of Performance," Organizational Behavior a,id Human Decisio,i Processes, January 2004, pp. 47- 61.

28 D. B. McNatt a nd T. A. Judge, "Boundary Co nd itio ns of the Galatea Effect: A Field Experiment and Constructive Replication,· Academy of Management Joumal, August 2004, pp. 550- 565; and X. M. Bezuijen, P. T. van den Berg, K. van Dam, a nd H. Th ieriy, ' Pygmalion and Employee Learning: The Role of Leader Behaviors,· Joumal of Ma11age111e11t 35 (2009), pp. 1248- 1267.

29 See, for exa mple, K. F. E. Wong and J. Y. Y. Kwong, ' Effects of Rater Coa ls o n Rating Patterns: Evidence from a n Experimental Field Study,• Journal of Applied Psrclrology 92, no. 2 (2007), pp. 577-585; a nd S. E. DeVoe and S. S. Iyengar, "Managers' T heo ries of Subordina tes: A Cross-Cu ltu ral Exa mi na tion of Ma nager Pe rceptions of Mo tiva tion a nd App ra isa l of Performance, " Organizational Behavior a,id Human Decisio,i Processes, January 2004, pp. 47- 61.

30 Vignette based on R. Faber, "Michele Ro ma now Y..•ants to Be a Helpfu l Dragon," Maclea11's, Januaiy 6, 2016, http://www. macleans.ca/ education/ michele-romanow-wanL<·tO·be·a·helpful. dragon/ .

31 D. Leising, J. Scharloth, 0. Lohse, and D. \.Vood, "V,.lhat Type.< of Te rms Do People Use \.Vhen Describing an Ind ivid ual's

Personality?' Ps)'chological Science 25, no. 9 (2014), pp. 1787- 1794.

32 L Weber, 'To Get a Job, New Hires Are Put to the Test,• \,\fall Street Joumal, April 15, 2015, pp. Al, AIO.

33 L. Weber and E. Dwoskin, "As Persona lity Tests Mu lt iply, Emp loyers Are Split, · Wall Street Journal, September 30, 2014, pp. Al, AJO.

34 D. Belkin, "Colleges Put the Emphasis on Personality,· Wall Street Joumal, January 9, 2015, p. A3.

35 M. J. W. Mcl.amona, M. C. Roth,teinb, R. D. Coffi nc, M. J. Riederd, A. Poolec, H. T. Krajewskie, D. M. Powell, R. 8. Jelley, a nd T. Me.<tdagh, • How Important Is Personal ity in the Selection of Medical School Students?" Personality and Individual Differences 104 (January 2017), pp. 442- 44 7.

36 S. A. Birkeland, T. M. Manson, J. L Kisa more, M. T. Bra nnick, and M.A. Smith, •A Meta-a nalytic Investigation of Job Applicant Faking on Personality Measures,· lntemational Joumal of Selection and Assessment 14, no. 14 (2006), pp. 31 7- 335.

37 D. H. Kluemper, 8. D. Mel.arty, a nd M. N. Bi ng, •Acquainta nce

Ratings of the Big Five Personality Traits: Incremental Va lid ity Beyond and Interactive Effects with Self-Reports in the Prediction of Workplace Devia nce, • Joumal of Applied Psychology JOO, no. I (201 5), pp. 237- 248; I. Oh, C. Wang, and M. K. Mount, "Validity of Observer Ratings of the Five-Factor Model of Personality Trails: A Meta-a nalysis,• Joumal of Applied Ps)'clwlogy 96, no. 4 (2011 ) , pp. 762- 773.

38 S. E. Hampson and L. R. Coldbeig, •A First large Cohort Study of Personality Trait Stability Over the 40 Years between Elementary School and Midlife,· Joumal of Personality and Social Psychology 91, no. 4 (2006), pp. 763- 779.

39 See A. H. Buss, "Personal ity as Tra its,· American Psychologist, November 1989, pp. 1378- 1388; and D. C. Winter, 0. P. John, A. J. Stewart, E. C. Klohnen, and L. E. Duncan, 'Traits and Motives: Toward an Integration of Two Tradition., in Personality Research,· Ps)'chological Review, April 1998, pp. 230- 250.

40 R. 8. Kennedy and D. A. Kennedy, •us ing the Myers-Briggs Type Indicator in Career Counseling, • Journal of Employment Cou11Seling, March 2004, pp. 38-44.

41 See, for instance, D. J. Pittenger, · cautionary Comments Regarding the Myers -Briggs Type Indicator," Consulting Psychology Joumal: Practice and Research, Su mmer 2005, pp. 210- 221; L. Bess and R. J. Harvey, •Bimodal Score Distributions and the Myers-Briggs Type Indicator: Fact o r Artifact? " Joumal of Personality Assessment, February 2002, pp. 176- 186; R. M. Capraro and M. M. Capraro, •Myers-Briggs Type Ind icator Score Reliability across Studies: A Meta-a nalytic Reliab ility Generalization Study," Educational and Ps)'chological Me.asurement, August 2002, pp. 590- 602; a nd R. C. Arnau, 8. A. Green, D. H. Rosen, D. H. Cleaves, and J. C. Melancon, •Are Jungian Preferences Really Categorical? An Empirical Investigation Using Taxometric Analysis,• Personality and Individual Differences, January 2003, pp. 233- 251.

42 M. R. Barrick and M. K. Mount, •yes, Personality Matters: Moving On to More I mportant Matte.rs, " Human Perfonnance 18, no. 4 (2005) , pp. 359- 372.

43 W. Fleeso n a nd P. Callagher, "The Implica tions of Big Five Standing for the Distribution of Trait Manifestation in Behavior: Fifteen Experience-Sampling Studies and a Meta-analysis,· Journal of Personalit.y and Social Psyclwlog)• 97, no. 6 (2009), pp. 1097- 1114.

En d notes 551

44 T. A. Judge, L. S. Simon, C. Hurst, a nd K. Kelley, "What I Experienced Yesterday Is \.Vho I Am Today: Relationship of Work Motivations and Behaviors to Within· lndividual Variation in the Five-Factor Model of Personality,• Joumal of Applied Ps)'clwlogy 99, no. 2 (2014), pp. 199- 221.

45 R. D. Zimmerman, W. R. Boswell, A. J. Sh ipp, 8. 8. Dunford, and J. \.V. Boudreau, •Explaining the Pathways between Approach. Avoidance Personality Traits and Employees' Job Search Behavior,• Joumal of Management 38, no. 5 (2012), pp. 1450- 1475 .

46 J. 8. Hirsh and J. 8. Peterson, •predicting Creativity and Academic Success with a 'Fake-Proof' Measure of the Big Five," Journal of Research in Personality42 (2008), pp. 1323- 1333.

47 "New Fake-Proof Personality Test Created,• ScienceDail)', October 8 , 2008, https ://w,,~v.scienceda ily.co m/ releases/ 2008/ J0/ 081007102849 .htm.

48 See, for instance, I. Oh and C. M. Berry, "The Five-Factor Model of Personali ty and Manageria l Performance: Validity Cai ns through the Use of 360 Degree Performance Ratings,· Journal of Applied Psychology 94, no. 6 (2009), pp. 1498- 1513; J. Hoga n and 8. Holland, "Using Theory to Evaluate Personality and Job. Performance Relations: A Socioanalytic Perspective," Journal of Applied Psyclwlogy 88, no. I (2003), pp. 100- 112; and M. R. Barrick and M. K. Mount, .. Select on Conscientiousness and Emotional Stability,• in Handbook of Principles of Organizntional Behavior, ed. E. A. Locke (Malden, MA: Blackwell, 2004), pp. 15- 28.

49 P. R. Sackett and P. T. \.Valmsley, "Which Personality Attributes Are Most Important in the Workplace? " Perspectives 011 Ps)•clwlogical Science 9, no. 5 (2014), pp. 538- 551.

50 S. J. Motowidlo, M. P. Martin, and A. E. Crook, •Relations between rersona lity. Knowledge, and Beh avior in Professional Service Encounters," Joumal of Applied Social Ps)'cl1olog)' 43, no. 9 (2013), pp. 1851- 1861.

51 A. E. Po ropat, •A Meta-analysis of th e Five-Facto r Model of Personal ity and Academic Performance,· Ps)'cl1ological Bulletin 135, no. 2 (2009), pp. 322- 338.

52 F. L. Schmid t and J. E. Hunter, "The Va lid ity and Utility of Selection Methods in Person nel Psychology: Pract ical and Theoretical Implications of 85 Years of Research Fi ndi ngs,• Psychological Bulletin, September 1998, p. 272.

53 A. K. Nandkeo lyar, J. A. Shaffer, A. Li, S. Ekkira la, and J. Bagger, "Su rvivi ng a n Abusive Supervisor: T he Joint Roles of Conscie ntiousneS-< and Copi ng Strategies," Journal of Applied Psychology 99, no. I (2014), pp. 138- 150.

54 8. \.Ville, F. De Fruyt, and M. Feys, · s ig Five Traits and lntrin.<ic Success in the New Career Era: A JS-Year Longitudinal Study on Em ployability and Work-Family Conflict,• Applied Ps)'cl1olog)•: An lntemational Review 62, no. I (2013), pp. 124- 156.

55 M. K. Shoss, K. Callison, and L. A. Witt, 'The Effects of Other- O riented Perfectio nism and Conscientiousness on Helping at Work, • Applied Ps)'clwlog)•: An hueniational Review 64, no. I (201 5), pp. 233- 251.

56 C. J. Feist, •A Meta-analysis of Personality in Scientific and ArtL<tic Creativity,• Personality and Social Psychology Review 2, no. 4 ( J 998), pp. 290- 309; C. Robert and Y. H. Cheung, •An Examination of the Relation.~hip Between Conscientiousn~ and Group Performance on a Creative Task, · Joumal of Research in Personality 44, no. 2 (2010), pp. 222- 231; and M. Batey, T. Chamorro -Premuzic, and A. Fu rnham, "Individual Differences in ldeational Behavior: Can the Big Five and Psychometric Intelligence Predict Creativity Sco res?" Creativity Research Journal 22, no. I (2010), pp. 90- 97.

552 Endnotes

57 J. L. Huang, A. M. Ryan, K. L Zabel, and A. Palmer, *Personality and Adaptive Performance a t 'A1o rk: A Meta-analytic Investigation,·

Joumal of Applied Psrchology99, no. I (2014), pp. 162- 179.

58 R. D. Zi mmerma n, 'A'. R. Boswell, A. J. Shipp, B. B. Dunford, and J. W. Boud reau, "Explain ing the Pathways between Approach- Avoidance Personality Trails and Employees' Job Search Behavior,· Joumal of Ma11agement 38, no. 5 (2012), pp. 1450- 1475.

59 B. 'A'ille, F. De Fruyt, and M. Feys, "Big Five Tra its and Intrinsic

Success in the New Career Era: A JS-Year Longitudinal Study o n Employability and Work-Family Conflict.· Applied Psrchology: A11 illlemational Review 62, no. I (2013), pp. 124- 156.

60 R. J. Foti and M.A. Hauen.stein , *Pattern and Variable Approache.< in Leaders hip Em ergence and Effectiveness,* Journal of Applied Psycholog)', March 2007, pp. 347- 355.

61 B. Weiss and R. S. Feldman, ' Looking Good and Lyi ng to Do It: Deception as an Impression Management Strategy in Job Interviews, · Joumal of Applied Social Psychology 36, no. 4 (2006),

pp. 1070- 1086.

62 A. Minbashian, J. Earl, and J.E. H. Brigh t, *Openness to Experience as a Predictor of Job Performance Trajectories,• Applied Psrchology: A11 International Review 62, no. I (2013), pp. 1- 12.

63 B. Wille, F. De Fruyt, and M. Feys, "Big Five Tra its and Intrinsic Success in the New Career Era: A JS-Year Longitudinal Study o n Employability and Work-Family Conflict.· Applied Psrchology: An illlemational Review 62, no. I (2013), pp. 124- 156.

64 R. !l ies, I. S. Fu lme r, M. Spitzm u ll er, a nd M. D. Joh nso n, *Persona lity and Cit izenship Beh avior: The Med iating Role of Job Satisfaction,· Joumal of Applied Psychology 94, no. 4 (2009), pp. 945- 959.

65 D. H. Kluemper, B. D. Mclarty, a nd M. N. Bing, ' Acquainta nce Ratings of the Big Five Personality Traits: Increm ental Valid ity Beyond and Interactive Effects with Self-Reports in the Prediction of Workplace Deviance, · Joun,al of Applied Psychology JOO, no. I (2015), pp. 237-248.

66 S. Cla rke and I. Robertson, ' An Exa mination of th e Ro le of Personality in Accidents Using Meta-analysis,· Applied Psychology: A11 International Review 57, no. I (2008), pp. 94- 108.

67 B. Wille, F. De Fruyt, and M. Feys, "Big Five Tra its and Intrinsic Success in the New Career Era: A JS-Year Longitudinal Study o n Employability and Work-Family Conflict,· Applied Psrchology: An illlemational Review 62, no. I (2013), pp. 124- 156.

68 J. F. Rauthmann, *The Dark Triad and Interpersonal Perception: Simi larities and Differe nces in the Socia l Consequences of Na rcissism, Mach iavellia nism, and Psychopathy." Social Psychological a11d Perso11ality Scie11ce 3 (2012), pp. 487-496.

69 P. D. Harms and S. M. Spa in, *Beyond the Bright Side: Dark Persona lity a t Work,• Applied Psrchology: An /11temational Review

64, no. 1 (2015), pp. 15 - 24.

70 P. K. Jonason, S. Slomski, and J. Partyka, °The Dark Triad at \<\fork: How Toxic Employees Get Their Way,· Perso11ality a11d llldividual

Differences 52 (2012), pp. 449- 453.

71 E. H. O'Boyle, D. R. Forsyth, G. C. Banks, a nd M.A. McDaniel, *A Meta-a nalysis of the Dark Triad and \<\fork Behavio r: A Social

Excha nge Perspective,* Journal of Applied Psrcl1olog)' 97 (2012), pp. 557-579.

72 L. Zhang, and M. A. Gowan, *Corporate Social Responsibility, Applicants' Individ ual Tra its, and O rgan izational Attraction: A Person- Organization Fit Perspective, " Journal of Busitiess and Psyclwlog)' 27 (2012), pp. 345-362.

73 D. N. Hartog and F. D. Belschak, *Work Engagement a nd

Machiavellianism in the Ethical Leadership Process,* Joumal of Business Ethics 107 (2012), pp. 35- 47.

E. Grijalva and P. D. Harms, "Narcissism: An Integrative Syn thesis a nd Dom inance Complem entarity Model,* The Academ)' of Management Perspectives 28, no. 2 (2014), pp. 108- 127.

D. C. Maynard, E. M. Brondolo , C. E. Connelly, a nd C. E. Sauer, *I'm Too Good for This Job: Narcissism's Ro le in the Experience of Overqualification, • Applied Psychology: An /nternatio11al Review 64, no. I (2015), pp. 208- 232.

E. Grijalva and P. D. Harms, "Narcissism: An Integrative Syn thesis a nd Dom inance Complem entarity Model,• The Academ)' of Management Perspectives 28, no. 2 (2014), pp. 108- 127.

B. J. Brummel and K. N. Parker, *Obligation and Entitlement in Society and the Workplace,• Applied Psycholog)': An lntemational Review 64, no. I (2015), pp. 127- 1 GO.

E. Grijalva and D. A. Newman, *Narcis.sism and Counte!productive Work Behavior (CWB): Meta-ana lysis and Consideration of Collectivist Culture, Big Five Personality, and Narcissism's Facet Structure,* Applied Psychology: A11 /nteniatio11al Review (2015), pp. 93- 126.

D. C. Maynard, E. M. Brondolo, C. E. Connelly, a nd C. E. Sauer, *I'm Too Good for This Job: Narcis.<ism's Ro le in the Experience of Overqualification, • Applied Psychology: An /ntematio11al Review 64, no. I (2015), pp. 208- 232.

E. Grijalva and P. D. Harms, "Narcissism: An Integrative Syn thesis a nd Dom inance Complem entarity Model,• The Academ)' of Management Perspectives 28, no. 2 (2014), pp. 108- 127.

S. Konrath, B. P. Meier, and B. J. Bushman, "Development a nd Validation of the Sing le Item Narcissism Scale (SINS).* Pl..oS ONE (Augtcst 5, 2014), doi: 10.1371/ joumal.pone.0103469; and h ttp.s:// news.osu.edu/ news/ 2014/ 08/ 05/ just·One-simple-question-can- identify-na rcissistic-people/ .

J. J. Sosik, J. U. Chun, and W. Zhu, ' Hang On to Your Ego: The Moderating Role of Leader Narcissism on Relationships between Leader Charisma a nd Follower Psychologica l Empowerm ent and Moral Identity,* Joumal of Business Et/tics, Februaty 12, 2013; B. M. Ga lv in, D. A. \<\lald m an, and P. Ba lthazard , *Visionaty Communica tion Qualities as Mediators of the Relationship between Na rcissis m and Attributio ns of Leader Cha risma," Person11el Ps)'cltology 63, no. 3 (2010), pp. 509-53 7.

D. Meinert, ' Narcissistic Bosses Aren' t All Bad, Study Finds,• HR Magazi11e, March 2014, p. 18.

K. A. Byrne and D. A. Worthy, "Do Narciss ist.< Make Better Decisions? An Investigation of Narcis.o;ism and Dynamic Decision· Making Performance, • Persona/it)' and Individual Differences, July 2013,pp.112- 117.

C. And reassen, H. Ursin , H. Eriksen, a nd S. Pallesen, "The Relationship of Narcissism with 'A1orkaho lism, \<\fork Engagement, and Professiona l Posit ion, · Social Behavior a11d Perso11ality 40, no. 6 (2012), pp. 881 - 890.

A. Chatterjee a nd D. C. Ha m brick, *Executive Personality, Capability Cues, and Risk Taking: How Narcissistic CEOs React to Their Successes and Stumbles," Admi,iistrative Science Quarterly 56 (2011 ) , pp. 202- 237.

C. J. Resick, D. S. W hitman, S. M. Weingarden, a nd N. J. H iller, °The Bright-Side and Da rk-Side of CEO Personality: Examining Core Self. Evaluations, Narcissism, Transformational Leadership, and Strategic Influence,· Joumal of Applied Psychology 94, no. G (2009), pp. 1365- 1381.

E. H. O ' Boyle, D. R. Forsyth, G. C. Banks, and M. A. McDa niel, *A Meta-analysis of the Dark Triad and Work Behavior: A Social Exchange Perspective, • Jounial of Applied Psychology 97, no. 3 (2012), p. 558.

A. Reece, A. G irkan, and T. Cha morro-Pre m uzic, *G reed ls Good ? Assessing the Relationship between Entrepreneurship and Subclinical P,.ychopathy, • Perso11alit)' and /11dividual Differences 54, no. 3 (2013), pp. 420- 425.

90 B. Wille, F. De Fruyt, and B. De C lercq, 'Expanding and Reconceptualizing Aberrant Personality at \<\fork: Validity of Five. Factor Model Aberrant Personality Tendencies to Predict Career Outcomes: Personnel Ps)'clwlogy 66 (2013), pp. 173- 223.

91 P. K. Jonason, S. Slomski, and J. Partyka, "The Dark Triad at Work: How Toxic Employees Get Their Way,· Perso11ality a11d flldividual Differences 52 (2012), pp. 449 - 453; and H. M. Baughman, S. Dearing, E. Giammarco, and P.A. Vernon, 'Relation.,hips between Bullying Behaviours and the Dark Triad: A Study with Adults,· Perso11ality and Individual Differences 52 (2012), pp. 571- 575.

92 U. Orth and R. \.V. Robins, "Understanding the Link between Low Self-Esteem and Depression,· Current Directions i11 Psychological Scie11ce 22, no. 6 (2013), pp. 455-460.

93 B. \.Ville, F. De Fruyt, and B. De C lercq, 'Expanding and Reconceptualizing Aberrant Personality at \<\fork: Validity of Five. Factor Model Aberrant Personality Tendencies to Predict Career Outcomes: Personnel Ps)'clwlogy 66 (2013), pp. 173- 223.

94 T. A. Judge and J. E. Bono, "A Rose by Any Other Name .. . Are Self-Esteem, Genera lized Self-Efficacy, Neuroticism, and Locus of Control Indicators of a Common Construct?" in Personality Ps)'chology in the Workplace, ed. B. W. Roberts a nd R. Hogan, (Washingto n, DC: American Psycho logica l Associa tion), pp. 93- 118; and A. M. Gra nt and A. Wrzesniewski, "I Won't Let You Down .. . or Will I? Core Self-Evaluations, Other-Orientation, Anticipated Guilt and Gratitude, and Job Perforrnance, • Joumal of Applied PS)'Chology95, no. I (2010), pp. 108- 121.

95 A. N. Salvaggio, B. Schneider, L. H. NL,hi, D. M. Mayer, A. Ramesh, a nd J. S. Lyon, 'Manager Persona lity, Manager Service Quality Orientation, and Service Climate: Test of a Model; Joumal of Applied Psyclwlogy 92, no. 6 (2007), pp. 1741 - 1750; B. A. Scott a nd T. A. Judge, "The Popularity Contest at Work: Wh o Wins, Why, and What Do They Receive?" Joumal of Applied Ps)'chology 94, no. I (2009), pp. 20- 33; and T. A. Judge and C. Hurst, ' How the Rich (and Happy) Get Richer (and Happier): Relationship of <:ore Se.If. Evaluations to Trajectories in Attaining Work Succe.~." Joumal of Applied Ps)'chology 93, no. 4 (2008), pp. 849- 863.

96 A. M . Grant and A. \+Vrzesniewksi, "I Won't Let You Down . .. or Will I? Core Self-Evaluations, Other-O rientation, Anticipated Guilt and Gratitude, and Job Performance: Journal of Applied Psyclwlog)' 95, no. I (2010), pp. 108- 121.

97 See M. Snyder, Public Appearances/Private Realities: The Ps)'chology of Self-Mo11itoring (New York: v,.1. H. Freeman, 1987); and S. \.V. Gangestad and M. Snyder, 'Self-Monitoring: Appraisal and Reappraisal,· Ps)'clwlogical Bulletin, July 2000, pp. 530- 555.

98 F. J. Flynn and D. R. Ames, "What's Good for the Goose May Not Be as Good for the Gander: The Benefits of Self-Monitoring for Men and \<\!omen in Task Group.< and Dyadic Conflicts,· Journal of Applied Ps)'clwlogy 91, no. 2 (2006), pp. 272- 281; and M. Snyder, Public Appearances/Private Realities: The Psyclwlogy of Self-Monitoring (New York: W. H. Freeman, 1987).

99 D. V. Day, D. J. Shleicher, A. L. Unckless, and N. J. Hiller, "Se)f. Monitoring Persona lity at Work: A Meta-analytic Investigation of Con.<truct Validity,• Joumal of Applied Psychology 87, no. 2 (2002), pp. 390- 401.

100 H. Oh and M. Kilduff, "The Ripple Effect of Personality on Social Structure: Self-monitoring Origins of Network Brokerage,• Joumal of Applied Psychology 93, no. 5 (2008), pp. 1155- 1164; and A. Mehra, M. Kilduff, and D. J. Brass, 'The Socia l Networks of High and Low Self-Monitors: Implications for Workplace Perforrnance, • Administrative Scie11ce Quarter/)', March 2001, pp. 121- 146.

101 A. Beer, "Comparative Personality Judgments: Replication and Extension of Robust Findings in Personality Perception Using an Alternative Method: Journal of Per.;011ality Assessme11t 96, no. 6 (2014), pp. 610- 618; and S. Hirsch muller, B. Egloff, S. Nestler, and D. Mitja, 'The Dual Lens Model: A Comprehensive Framework for Understanding Self- Other Agreement of Personality Judgments at

En d note s 553

Zero Acquaintance, · Joumal of Perso11ality and Social Psyclwlogy 104 (2013), pp. 335- 353.

102 S. Hirschmueller, B. Egloff, S. C. Schmukle, S. Nestler, and M. D. Back. .. Accurate Judgments of Neuroticism at Zero Acquaintance: A Que.,tion of Relevance,· Journal of Personality 83, no. 2 (201 5), pp. 221 - 228.

103 M. D. Back, ' Personality Expre."-<ion and Impression Formation in O nline Social Networks : An In tegrative Approach to Understanding Processe.'i of Accuracy, Jmpre.'i.'iion Ma nagement, and Meta-accuracy: European Jounial of Personality 28 (2014), pp. 73- 94.

104 P.-Y. Liao, "The Role of Self-Concept in the Mechanism Linking Proactive Personality to Employee \<\fork Outcomes: Applied Psychology: An International Review 64, no. 2 (2015), pp. 421- 443 .

105 K. Tornau and M. Frese, .. Construct Clean. up in Proactivity Resea rch: A Meta-analysis o n the Nomologica l Net of \.Vork- Related Proactivity Concepts and Their Incrementa l Va lues," Applied Psychology: An fllternational Review 62, no. I (2013), pp. 44- 96.

106 W.-D. Li, D. Fay, M. Frese, P. D. Harrns, and X. Y. Gao, ' Reciprocal Re lationsh ip betwee n Proact ive Perso nality and Work Characteristics: A Latent Change Score Approach: Journal of Applied Psyc/10108)' 99, no. 5 (2014), pp. 948- 965.

107 P. D. Converse, Patrick J. Pathak, A. M. DePaul-Haddock, T. Gotlib, and M. Merbedone, 'Controlling Your Environment and Yourself. Implications for Career Success,· Journal of Vocational Behavior 80 (2012), pp. 148- 159.

108 G. Chen, J. Farh, E. M. Campbell-Bush, Z. Wu, and X. Wu, "Teams as Innovative Systems: Mu ltilevel Motivational Antecedents of Innovation in R&D Teams,• Journal of Applied Psychology 98 (2013), pp. 1018- 1027.

109 Y. Gong, S.-Y. Cheu ng, M. Wang, and J.·C. Huang, 'Unfold ing the Proact ive Process fo r Creativity: Integratio n of the Employee Proactivi ty, Information Exchange, and Psychological Safety Perspectives: Journal of Management 38, no. 5 (2012), pp. 1611- 1633.

110 Z. Zhang, M. \.Vang, and S. Junqi, ' Leader-Follower Congruence in Proactive Personality and Work Outcomes: The Mediating Role of Leader-Member Exchange,· Academy of Management Joumal 55 (2012), pp. 111- 130.

ill G. Van Hoye a nd H. Lootens, "Coping with Unemployment: Personal ity, Role Dema nds, and Ti me Structu re: Journal of Vocational Behavior 82 (2013), pp. 85- 95.

112 R. D. Meyer, R. S. Dalal, and R. Hermida, 'A Review and Synthesis of Situational Strength in the Organizational Sciences,• Journal of Management 36 (2010), pp. 121- 140.

113 R. D. Meyer, R. S. Da lal, I. J. Jose, R. Hermida, T. R. Chen, R. P. Vega, C. K. Brooks, V. P. Khare, "Measuring Job-Related Situational Strength and Assessing IL< Interactive Effects with Personality on Volu ntary \<\fork Behavior,• Joun,al of Management 40, no. 4 (2014), pp. 1010- 1041.

114 A. M. Grant and N. P. Rothbard, 'When in Doubt, Seize the Day? Security Values, Prosocial Values, and Proactivity under Ambiguity; Joumal of Applied Psychology, 2013.

115 See, for in.stance, C. D. Fc,herand N. M. Ashkanasy, "The Emerging Role of Emotions in Work Life: An Introduction: Jounial of Organiuitional Behavior, Special Issue (2000), pp. 123- 129; N. M. Ashkanasy, C. E. J. Hartel, and W. J. Zerbe, eds., Emotions in the Workplace: Research, Theory. and Practice (Westport, CT: Quorum Books, 2000); N. M. Ashkanasy and C. S. Daus, 'Emo tion in the \.Vorkplace: The New Challenge for Managers: Academy of Management Executive, February 2002, pp. 76- 86; a nd N. M. Ashkana.sy, C. E. J. Hartel, and C. S. Daus, ' Diversity and Emotion: The New f rontiers in Organizational Behavior Research," Jounial of Management 28, no. 3 (2002), pp. 307- 338.

554 Endnotes

116 S. G. Ba rsade and D. E. G ibson, ' v\lhy Does Affect Matter in Organizations?" Academ)' of Management Perspectives, Februa ry 2007, pp. 36- 59.

117 Em otio n. Oxford Advanced Learner's Dictionary, http://www. oxforddictionaries.com/us/definition/american_english/emotion, retrieved July 1, 201 7.

118 Mood. The American Heritage Medical Dictionary (2007), retrieved July 1, 201 7 from http:/ / medic:aJ.d ictionary.thefreedictionary.com/ m ood.

119 Mood. Far/ex Partner Medical Dictionary (2012), retrieved Ju ly, 2017, from h ttp:// m ed ica J.d ictionary.thefreedictionary.com/ m ood.

120 Based on K. Sa nford and A. J. Grace, ' Emotion and Underlying Co ncerns du ring Couples' Confl ict: An Investigatio n of withi n-Person Cha nge, · Personal Relationships 18, no. 1 (2011 ) , pp. 96- 109; and Baylor University, ' Explo ring How Partners Perceive Each O ther's Em otion du ring a Relat ionsh ip Fight,• ScienceDaily, December 16, 2010, h ttp://\\~vw.scienceda ily.com/ releases/ 2010/ 12/ 101216161514.htm .

lll P. S. Russell and R. Giner.Sorolla, "Bodily Moral Disgust: What It Is, How It Is Different from Anger, and \.Vhy It Is an Unreasoned

Emotion: Psychological Bulletin 139, no. 2 (2013), pp. 328- 351.

112 H. A. Chapman and A. K. Anderson, "1n ings Rank a nd Gross in Nature: A Review a nd Synthesis of Moral Disgust,• Psychological Bulletin 139, no. 2 (2013), pp. 300- 327.

113 T. Krennenauer, J. B. Asendorpf, and G. Nunner·Winkler, "Moral Emotion Attrib utio ns and Personality Traits As Long.Term Predictors of Antisocial Conduct in Early Adulthood: Find ings from a 20.Yea r Longi tud ina l Study, · /111enwtional Joumal of Behavioral Deve/opmelll, May 2013, pp. 192- 201 .

124 See J. A. Morris a nd D. C. Feld m an, "Ma naging Emotions in the Workplace,• Journal of Managerial Issues 9, no. 3 ( 1997) , pp. 257-274; S. Man n, Hiding Whal We Feel, Faking Whal \<Ve 0011 '1: Understanding the Role of Your Emotions at Work (New York: Ha rperColl ins, 1999); and S. M. Kru ml and D. Geddes, ' Catchi ng Fire without Burning O ut: Is There a n Ideal \.Vay to Perform Emotion Labor?' in £motions in the Workplace, ed. N. M. Ashkanasy, C. E. J. Hartel, and W. J. Zerbe (New York: Q uorum Books, 2000), pp. 177- 188.

125 M. V.,,_ Kram er and J. A. Hess, "Commu nication Rules for the D isplay of Emotio ns in Organizatio nal Settings," Manageme,it Comm1mica1io11 Quarterly, August 2002, pp. 66 - 80; and J. M. Diefendorff and E. M. Richard, "Antecedents and Consequences of Emotional Display Rule Perceptions,· Journal of Applied Psychology, Apri l 2003, pp. 284- 294.

116 P. S. Ch ristoforo u and B. E. Ash forth, "Revis iting the Debate on the Relationsh ips between Display Rules a nd Performance: Con.sidering the Explicitness of Display Rules, • Journal of Applied Psycholog)' 100, no. I (2015), pp. 249- 261.

127 C. M. Brotheridge and R. T. Lee, "Developm ent and Validatio n of the Em o tional Labou r Scale, • Journal of Occupational and Organizational Ps)'cholog)' 76, no. 3 (September 2003) , pp. 365- 379.

128 U. R. Hulsheger, H. J. E. M. Alberts, A. Feinholdt, and J. W. B. Lang, ' Benefits of Mi ndful ness a t Work: The Role of Mindfu lness in Emotion Regulation, Emotional Exhaustion, and Job Satisfaction,· Joumal of Applied Ps)'chology, March 2013, pp. 310- 325.

129 J. D. Kammeyer·Mueller, A. L. Rubenstein, D. M. Long, M.A. Odio, B. R. Buckm an, Y. Zhang, and M. D. K. Halvorsen· Ganepola, "A Meta-analytic Structural Model of Dispositionally Affectivity and Emotional Labor: Personnel Psyclwlog)' 66 (2013), pp. 47-90.

130 D. T. Wagner, C. M. Barnes, and B. A. Scott, "Driving It Ho me: How Workplace Emotional Labor Harms Employee Home Life,· Personnel Psyc/10/ogy67 (2014), pp. 487-516.

131 J. D. Kam meyer·Mueller, A. L Rubenstein, D. M. Long, M.A. Odio, B. R. Buckm an, Y. Zhang, and M. D. K. Halvorsen·Ganepola, ' A Meta.analytic Structural Model of Dispositionally Affectivity and Em otional Labor: Personnel Ps)'chology 66 (2013), pp. 47-90.

132 J. P. Trougakos, D. J. Beal, S. G. Green, and H. M. Weiss, ' Making the Break Count: An Episodic Examination of Recovery Activities, Emotional Experiences, and Positive Affective Displays," Academ)' of Managemelll Joumal 51, no. I (2008), pp. 131 - 146.

133 J. M. Diefendorff, R. J. Erickson, A. A . Grandey, and J. J. Dahling, "Emotional Display Ru les as Work Unit Norms: A Mu ltil evel Ana lys is of Emotio na l Labor a m ong N urses,· Journal of Occupational Healtlt Psycltology 16 (2011 ) , pp. 170- 186.

134 S. Bras_sen, M. Gam er, and C. Bilchel, "Anterior Cingu late Activation Is Re.lated to a Positivity Bias and Emo tional Stability in Successfu l Agi ng, " Biological Psychiatr)' 70, no. 2 (2011), pp. 131- 137.

135 H. Gue nter, I. J. H. van Em m e rik, and B. Schreurs, ' T he Negative Effects of Delays in Information Exchange: Looking at Workp lace Relationships from a n Affective EvenLs Perspective: Human Resource Manageme,u Review 24, no. 4 (December 2014), pp. 283- 298; and F. K. Matta, H. T. EroJ. Korkm az. R. E. Johnson, and P. Bi~aksiz, "Signi ficant Work Events and Counterproductive Work Behavior: The Role of fai rness, Emotions, and Emo tion Regulation: Journal of Organizational Behavior 35, no. 7 (2014), pp. 920- 944.

136 C. D. Fisher, A. Minbashian, N. Beckmann, and R. E. Wood, "Task Appraisals, Emotio ns, and Performance Goal Orientations," Joumal of Applied Psychology 98, no. 2 (2013), pp. 364- 373.

137 N. M. Ashkanasy, C. E. J. Ha rtel, and C. S. Da us, ' Diversity and Emotion: The New f ro ntiers in Orga nizationa l Behavio r Research, · Joumal of Managemelll 28, no. 3 (2002), p. 324.

138 Based on D. R. Caruso, J. D. Mayer, a nd P. Salovey, ' Emotional In telligence and Emotional Leadership; in Multiple Intelligences and Leaders/tip, ed. R. E. Riggio, S. E. Murphy, and F. J. Pirozwlo (Mahwah, NJ: Lawrence Erlbaum, 2002), p. 70.

139 P. Salovey and D. Grewal, "The Science of Emotional Intelligence: Current Directions in Ps)'cltological Science 14, no. 6 (2005), pp. 281 - 285; a nd D. Geddes and R. R. Call ister, "Cros_sing the Li ne(s) : A Dual Thresho ld Model of Anger in O rganizatio ns: Academ)' of Management Review 32, no. 3 (2007) , pp. 721- 746.

140 Based o n R. L. Hotz, "Too Important to Smile Back: The 'Boss Effect;" Wall Street Jouma/, October 16, 2012, p. D2; E. Kim and D. J. Yoon, ' Vslhy Does Service with a Smile Make Em ployees Happy? A Social Interaction Model,• Joumal of Applied Psychology 97 (2012), pp. 1059- 1967; and K. \.Veintraub, "But How Do You Really Feel? Someday the Computer May Know: New York Times, October 16, 2012, p. D3.

141 E. H. O' Boyle, R. H. Hum phrey, J.M. Po llack, T. H. Hawver, and P. A. Stoty, 'The Relation between Em otional Intelligence and Job Performance: A Meta.analysis," Journal of Organizational Behavior 32, no. 5 (2011), pp. 788- 818.

142 R. Gilkey, R. Caceda, and C. Kilts, "When Emotional Reasoning Trumps IQ,· Harvard Business Review, September 2010, p. 27.

143 M. Seo and L. F. Ba rrett, ' Bei ng Em otional During Decision Maki ng- Good o r Bad? An Empirica l Investigation: Academ)' of Management Journal 50, no. 4 (2007), pp. 923- 940.

144 Based o n D. ll iescu, A. )lie, D. )spas, a nd A. Jon, "Emotional Intelligence in Personnel Selection: Applicant Reactions, Criterion, and Incremental Va lid ity, " ltiternatio,ial Joumal of Selection and Assessment, Septem ber 2012, pp. 347-358; D. L. Joseph, J. Jin, D. A. Newm an, and E. H. O' Boyle, "Why Does Self. Reported Em otional In telligence Predict Job Performance? A Meta.analytic Investigation of Mixed El,· Jounwl of Applied Ps)'chology 100, no. 2 (2015), pp. 298- 342; R. Sharm a, "Measu ring Socia l a nd Emotio nal Intel ligence Competen cies in the Indian Context,"

Cross Cultural Ma 11agement 19 (2012), pp. 30-47; and S. Sharma, M. Gangopadhyay, E. Austin, and M. K. Manda), ' Development a nd Val idation o f a Situational Judgment Test of Emotiona l I ntelligence," Intenwtio,ial Journal of Sele.ction and Assessme,11, March 2013, pp. 57- 73.

145 See R. J. Ben nett a nd S. L. Rob inson, "Develop me nt of a Measure of \.Vorkplace Deviance, • Journal of Applied Ps)'c/1olog)', June 2000, pp. 349- 360; see also P. R. Sackett and C. J. DeVore, "Counterproductive Behaviors at Work, • in Handbook of Industrial, Work & Orga11izatio11al Psrcholog)\ vol. I , ed. N. Anderson, D.S. Ones, H. K. Sinangil, and C. Viswesvaran (Thousand Oaks, CA: Sage, 2001 ), pp. 145- 164.

146 K. Lee and N. J. Allen, "Organizational Citizenship Behavior and Workp lace Deviance: The Ro le o f Affect and Cognition,• Joumal of Applied Psyclwlogy 87, no. I (2002), pp. 131- 142; T. A. Judge, B. A. Scot t, and R. Jlies, •Hostility, Job Attitudes, and Workplace Deviance: Test of a Multilevel Mode,• Journal of Applied Psyclwlogy 91, no. I (2006), pp. 126- 138; and S. Kaplan, J.C. Bradley, J. N. Luchman, and D. Haynes, "On the Ro le o f Positive and Negative Affectivity in Job Performance: A Meta.analytic Investigation," Journal of Applied Ps)'chology 94, no. I (2009), pp. 152- 176.

147 S. C. Douglas, C. Kiewitz, M. Martinko, P. Harvey, Y. Kim, and J. U. Chun, .. Cognitions, Emotions, and Evaluations: An Elaboration Like lihood Model fo r 'A'o rkplace Aggression, • Academy of Ma11agement Review 33, no. 2 (2008), pp. 425-451.

148 A. K. Khan, S. Ouratulain, and J. R. Crawshaw, "The Mediating Role of Discrete Emotions in the Relationship between Injustice a nd Cou nterproductive \<\fork Behavio rs: A Study in Pakistan,· Journal of B11.1i11ess and Psyclwlog)', March 2013, pp. 49- 61.

149 S. L Koole, 'The Psychology of Emotion Regulation: An Integrative Review,• Cog11itio11 and Emotio11 23 (2009), pp. 4- 41; and H. A. Wadl inger and D. M. lsaacowitz, •Fixing Our Focus: Tra ining Attention to Regulate Emotion,• Personality a11d Social Ps)'chology Review 15 (2011), pp. 75- 102.

150 D. H. Kluemper, T. DeGroot, and S. Choi, •Emotion Management Ability: Predicting Task Performance, Citizen.ship, and Deviance,• Journal of Ma11agement, May 2013, pp. 878- 905 .

151 J. P. Trougakos, D. J. Beal, B. H. Cheng, I. Hideg, and D. Zweig, 'Too Drained to Help: A Resource Depletion Perspective on Daily Interpersonal Citizen.ship Behaviors,· Joumal of Applied Psyclwlogy JOO, no. I (2015), pp. 227- 236.

152 B. A. Scott, C. M. Barnes, a nd D. T. Wagner, "Chameleonic or Cons is ten t? A Mu lti level Investigation of Emotiona l Labor Variability and Self-Monitoring, · Academy of Ma11agement Joumal 55, no. 4 (2012), pp. 905- 926.

153 U. R. Hulsheger, J. W. B. Lang, A. F. Schewe, and F. R. H. Zij lstra, · w hen Regu lating Emotions at Work Pays Off: A Diary a nd an Interventio n Study o n Emotio n Regu lation and Customer Tips in Service Jobs," Joumal of Applied Psychology, March 2015, pp. 263- 277.

154 J. L. Jooa a nd G. Francesca, •poker-Faced Mora lity: Concealing Emotions Leads to Utilita rian Decision Making. " Organiu,tional

Behavior a11d Huma11 Decisio11 Processes 126 (Janua ry 2015) , pp. 49- 64.

155 J. L. Jooa a nd G. Francesca, ' Poker-Faced Mora lity: Concealing Emotions Leads to Utilita rian Decision Making. " Organiu,tional Behavior a11d Huma11 Decisio11 Processes 126 (Ja nua ry 2015) , pp. 49- 64.

156 T. L. Webb, E. Miles, and P. Sheeran, · o ea ling with Feel ing: A Meta-analysis o f the Effectiveness of Strategies Derived from the Process Model of Emo tio n Regu lation,· Psychological Bulletin 138, no. 4 (2012), pp. 775-808; S. Srivastava, M. Tamir, K. M. McGonigal, 0 . P. John, a nd J. J. Gross, "The Social Costs of Emotional Suppression: A Prospective Study of the Transitio n to College,· Journal of Perso11ality a11d Social Psychology 96 (2009), pp. 883- 897; Y. Liu, L. M. Prati, P. L. Perrewe, and R. A. Brymer,

Endnotes 555

"Individual D i fferences in Emotion Regulation, Emotiona l Experiences at \<\fork, and \<\fork-Related Outcomes: A Two-Study Investigation,• Journal of Applied Social Psychology 40 (2010), pp. 1515- 1538; and H. A. Wadlinger and D. M. lsaacowitz, •, w ng our Forus: Training Attention to Regulate Emotion," Personality a11d Social Ps)'clwlogy Review 15 (2011), pp. 75-102.

157 J. J. Gross, E. Halperin, a nd R. Porat, "Emotio n Regulatio n in Intractable Conflicts,"' Current Directions in Ps)1C-lwlogical Science 22, no. 6 (2013), pp. 423-429.

158 A. S. Troy, A. J. Shallcross, and I. B. Mauss, •A Person-by-Person Situation Approach to Emotion Regulation: Cognitive Reappraisal Can Either Help or Hurt, Depending on the Context,• Ps)'chological Science 24, no. 12 (2013), pp. 2505-2514.

159 E. Halperin, R. Porat, M. Tamir, and J. J. Gross, "Can Emotion Regulation Change Po litical Attitudes in Intractable ConflicLs? From the Laboratory to the Field,· Ps)'clwlogical Scie11ce, January 2013, pp. 106- 111 .

160 R. Teper, Z. V. Segal, and M. lnzlicht, "In.side the Mindful Mind: How Mi ndfulness Enhances Emo tio n Regula tio n through I mprovements in Execu tive Control," Current Direct ions i,i Psychological Science 22, no. 6 (2013), pp. 449- 454.

161 A. S. McCance, C. D. Nye, L. Wang, K. S. Jones, a nd C. Chiu, •Alleviating the Burden of Emotional Labor: The Role of Social Sha ring," Journal of Manageme111 39, no. 2 (2013), pp. 392- 4 15.

162 F. Nils and B. Rime, •Beyond the Myth of Venting: Social Sharing Modes Determine the Benefits of Emotional D isclosure," Europea11 Journal of Social Ps)'chology 42 (2012), pp. 672- 681; and J. D. Pa rlamis, "Venting as Emotio n Regulatio n: The Influence of Venting Responses a nd Respondent Identi ty on Anger and Emotional Tone,• 1"temational Journal of Conflict Ma11agement 23 (2012),pp. 77-96.

163 S.-C. S. Chi and S.-G. Liang, "\.Vh en Do Subo rdinate.,' Emotion- Regulatio n Strategies Matter? Abusive Supervision, Subordinates'

Emotional Exhaustio n, and \<\fork 'A' ithdrawal, • The Leadership Quarterly, February 2013, pp. 125- 137.

164 R. H. Humphrey, "How Do Leaders Use Emotional Labor?" Joumal ofOrga11izational Behavior, July 2012, pp. 740-744.

165 A. M. Grant, "Rocking the Boat but Keeping It Steady: The Role of Emotion Regulation in Employee Voice, • Academy of Manageme11t Joumal 56, no. G (2013), pp. 1703- 1723.

166 Based on "Affecti ve Computi ng, · MIT, accessed Octo ber I , 2014, http://affect.media.mit.edu/ ; •Affective Computing and Intell igent Interaction" (paper presented at IEEE Computer Society Annual Conference. Geneva, Switz-erl and, September 2013 ), http://ieeexplore.ieee.org/xpl/ mostRecentlssue.jsp? reloa d=true&punumber=G67993G; and K. Weintraub, "But How Do You Really Feel? Someday the Computer May Know, · New York Times, October 16, 2012, p. 03.

167 C. \.Vest, •How Culture Affects the Way We Think,· APS Observer 20, no. 7 (2007), pp. 25-26.

168 T. Masuda, R. Gonzalez, L. Kwan, and R. E. Nisbett, · c ulture and Aesthetic Preference: Comparing the Attention to Context of East Asians and Americans,• Personality a11d Social Ps)'clwlog)' Bul/e1i11 34, no. 9 (2008), pp. 1260- 1275 .

169 D. C. Park, · oeveloping a Cu ltural Cognitive Neuroscience of Aging,• in Ha11dbook of Cog11itive Agi11g, ed. S. M. Hofer and D. F. Alwin (Thousand Oaks, CA: Sage, 2008), pp. 352- 367.

170 Q. Wang, •o n the Cultural Constitution of Collective Memory," Memory 16, no. 3 (2008), pp. 305-317.

171 See, for instance, A. H. Mezulis, L Y. Abram.son, J. S. Hyde, and B. L. Hankin, "Is There a Universal Positivity Bias in Attributions: A Meta-analytic Review of Individual, Developmental, and Cultural Differences in the Self-Serving Attributio nal Bias, • Ps)'clwlogical B11/leri11 130, no. 5 (2004), pp. 711-747; C. F. Falk, S. J. Heine, M. Yuki, and K. Takemura, "'A'hy Do Westerners Self-Enh ance More

556 Endnotes

Than East Asians?' European Joumal of Personality 23, no. 3 (2009), pp. 183- 203; and F. F. T. Ch iang a nd T. A. Birtch, 'Examining the Perceived Cause< of Successfu l Employee Performance: An East- West Comparison," huen1ational Journal of Human Resource Management 18, no. 2 (2007), pp. 232- 248.

172 R. Friedman, VJ. Liu, C. C. Chen, and S. S. Chi, 'Causal Attribution for lnterfi rm Contract Vio lation: A Comparative Study of Chinese and Am erican Com mercia l Arb itrators: Journal of Applied Psycholog)' 92, no. 3 (2007), pp. 856- 864.

173 J. Spencer-Rodgers, M. J. \.Villiams, D. L. Hamilton, K. Peng. and L. Wang, 'Cu ltu re a nd G roup Perception: Dispositional a nd Stereotypic Inferences about Novel and National Groups,• Journal of Personality and Social Psychology 93, no. 4 (2007), pp. 525-543.

174 J. D. Brow n, 'Across the (Not So) Great Divide: Cultura l Similarities in Self. Eva luative Processes," Social and Personality

Psycholog)' Compass 4, no. 5 (2010), pp. 318 - 330.

175 A. Zha ng, C. Reyna, Z . Q ia n, a nd G. Yu, "In te rpersona l Attributions of Respon.<ibility in the Chinese Workplace: A Test of Western Models in a Collectivistic Context,· Journal of Applied Social Psychology 38, no. 9 (2008), pp. 2361- 2377; and A. Zhang, F. Xia, and C. Li, "The Antecedents of Help Giving in Chinese Culture: Attr ibution, Judgment of Responsibility, Expectation Change and the Reaction of Affect,• Social Behavior and Personality 35, no. I (2007), pp. 135-142.

176 See, for example, R. R. McCrae and P. T. Costa Jr., 'Personality Trait Structure as a Human Universal," American Ps}'r::hologisl, May 1997, pp. 509-516; S. Yamagata, A. Suzuki, J. Ando, Y. Ono, K. Yutaka, N. Kijima, K. Yoshimura, F. Ostendorf, A. Angleitner, R. Riem ann, F. M. Spinath, V\I. J. Livesley, and K. L Jang. ' Is the Genetic Structure of Human Personal ity Universal? A Cross. Cultura l Twi n Study from North America, Europe, and Asia,• Journal of Persona/it)' and Social Ps)'cholog)' 90, no. 6 (2006), pp. 987- 998; H. C. Triandis and E. M. Suh, 'Cultural Influences on Personality: in Annual Review of Ps)'chology, vol. 53, ed. S. T. Fiske, D. L. Schacter, and C. Zah n-~'axle r (Pa lo Alto, CA: Annual Reviews, 2002), pp. 133- 160; R.R. McCrae and J. Allik, The Five-Factor Model of Personality across Culwres ( New York: Kluwer Academic/Plenum, 2002); and R. R. McCrae, P. T. Costa Jr., T. A. Ma rt in, V. E. OryoJ, A. A. Rukavishnikov, I. G. Senin, M. Hrebic'kova, and T. Urbanek, "Consensual Va lidation of Personality Traits across Cultures,· Journal of Research in Personality 38, no. 2 (2004), pp. 179- 201.

177 M. Gurven, C. von Ruden, M. Massenkoff, H. Kaplan, and M. L. Vie, "How Universal Is the Big Five? Testi ng the Five-Factor Model of Persona lity Variation among Forager. farmers in the Bolivia n Amazon,· Joumal of Personality and Social Psychology 104, no. 2 (2013), pp. 354- 370.

178 M. Eid and E. Diener, 'Norms for Experiencing Emotions in Different Cultures: Inter· and lntranational Differences," Joumal of Personality a11d Social Ps)'cholog)' 81, no. 5 (2001 ), pp. 869- 885.

179 S. O ishi, E. Diener, and C. Napa Scollon, 'Cross-Situational Consistency of Affective Experiences across Cultures: Joumal of Personality a11d Social Ps)'clwlog)' 86, no. 3 (2004), pp. 460- 472; a nd J. Leu, J. \.Vang, a nd K. Koo, 'Are Posit ive Emotions Just as 'Positive' across Cultures?" Emotion 11, no. 4 (2011 ) .

180 M. Gendron, D. Roberson, J. M. van der Vyver, and L F. Barrett, 'Cultural Relativity of Perceiving Emotion from Vocalizations,· Psyclwlogical Scie11ce 25, no. 4 (2014), pp. 911 - 920.

181 S. Nelton, 'Em otions in the Wo rkp lace,• Nation's Business, February 1996, p. 25.

182 B. Carey, "The Benefits of Blowing Your Top: New York Times. July 6, 2010, p. DI ; R. Y. Cheung and I. J. Park, "Anger Suppression, Interdependent Self-Const rual, and Depression a mo ng Asian American and Europea n American College Students," Cultural Diversity and Ethnic Minority Psycholog)' 16, no. 4 (2010), pp. 517- 425; D. Geddes and L. T. Stickney, "The Trouble with Sanctions:

O rganizational Respon.ses to Deviant Anger Displays a t \.Vork: Human Relations 64, no. 2 (2011 ), pp. 201 - 230; J. Fairley, "Taking Contro l of Anger Managem ent,• Workforce Manageme11t, October 2010, p. JO; LT. Stickney and D. Geddes, "Positive, Proactive, and Committed: The Surprising Connection Between Good Citizens a nd Expressed (vs. Suppressed) Anger a t Work,• Negotiatio11 a11d Conflict Management Research 7, no. 4 (Novem ber 2014), pp. 243- 264; and J. W halen, "Angry OutbursL< Rea lly Do Hurt Your Health, Doctors Find: \-Vall Street Jouma/, March 24, 2015, pp. DI, 04.

183 Exercise based on M.-A. Reinard and N. Schwartz, "The Influence of Affective States on the Presence of Lie Detection,· Joumal of Experimental Psychology 18 (2012), pp. 377- 389.

184 Based on S. Shellenbarger, "Thinking Happy ThoughL< at Work,• Wall Street Journal, Ja nuary 27, 2010, p. 02; S. Sharm a a nd D. Chatterjee, "Cos Are Keenly Listen ing to ' Happiness Coach," Economic Times, July 16, 2010, h ttp://artides.economictimes.ind ia- t imes.com; J. Smith, 11ie Executive Happiness Coach, accessed May 3, 2011, http://,V\,~v.lifewithhappines.,.com; and S. Sonnentag and A. M. Grant, "Doing Good at Work Feels Good at Hom e, But Not Right Away: \.Vhen and \.Vhy Perceived Pro.social Impact Predicts Po.<itive Affect,· Personnel Psrchology 65 (2012), pp. 495-530.

185 Based o n S. Cain, Quiet: The Power of l11troverts in a World 11iat Can't Stop Talking (New York: Ra ndom Ho use/Broadway Paperbacks, 2013); G. Belojevic, V. Slepcevic, and B. Jakovljevic, "Mental Performance in Noise: The Role of Introversion," jounial of Environmental Psychology 21, no. 2 (2001 ), pp. 209 - 213; and P. Hi lls a nd M. Argyle, ' Happiness, lntroversion-Extraversion and Happy Int roverts: Perso11ality and Individual Differe11ces 30, no. 4 (2001 ), pp. 595-608.

186 P. Hartcher, 'Voters Now at Ease with Rich Pickings,• The Syd11ey Morn ing Herald, July 30, 2013, h ttp://"~'~v.smh.com.au/fed- eral . po Ii t ics/ f edera I-e lect ion- 2013 / voters-now-at-ease-w ith . rich-pickings-20J30729-2quvp.html; N. T. Feather, 'An alyzing Re lative. Deprivation in Relatio n to Deservingness, Entitlement and Resentment,· Social Justice Research 28 (201 5), pp. 7- 26; E. Kim a nd T. M. Glomb, "Victimization of High Performers: The Roles of Envy and \<\fork Group Identi fication,• Joumal of Applied Psychology 99, no. 4 (2014), pp. 619- 634; a nd K. Van Va lkenburgh, lllvestigating Tall Poppy Syndrome i11 United States Fi,iancial hlstitutions: A,i Attitude mid Values Perspective, doctoral dis.sertation, Alliant In ternational University (2013), publication number 3595388.

187 Based o n V. P. Richmond, J. C. McCroskey, and S. K. Payne, Nonverbal Behavior in Interpersonal Relatiol!S, 2nd ed. (Englewood Cliffs, NJ: Prent ice Hall, 1991), pp. 117- 138; and L.A. King, ''Ambivalence over Emotio nal Expressio n and Reading Emotions in Situations and Faces,• Journal of Personality and Social Ps)'cholog)', March 1998, pp. 753-762.

Chapter 3

1 Vignette based on K. Porter, 'Local Tech Com panies Sign Open Letter Opposing Trump Travel Ban: CBC News, January 31, 2017, h ttp://W\,~v.cbc.ca/ news/canada/ o ttawa/tech-companie.<-oppose- trump-travel-ban- J .3954433; M. Braga, "Canadian Tech Companies Say They Value Diversity - But \.Vhat Are They Doing About It?" CBC News, July 11, 2017, http://W\,~v.cbc.ca/news/technology/ canada-tech-companies-diversity-reports-2017-1.4194556.

2 G. R. Maio, J. M. O lson, M. M. Bernard, a nd M. A. Lu ke, 'Ideologies, Va lues, Attitudes, a nd Beh avio r,• in Handbook of Social Ps)'cholog)', ed. J. Delamater (New York, NY: Springer, 2003), pp. 283 - 308.

3 See, for exam ple, B. Meglino a nd E. Ravl in, ' Indiv idual Values in Organ izatio ns: Journal of Managemelll 24, no. 3 (1998), pp. 351- 389.

4 See, for instance, A. Sardi, J. A. Lee, N. Ho fmann-Towfigh, and C. Soutar, "The Structure o f lntraindividual Value Change,· Journal

of Personality and Social Ps)'chology 97, no. 5 (2009), pp. 913- 929.

5 S. Roccas, L. Sagiv, S. H. Schwartz, and A. Knafo, "The Big Five Personality Factors and Personal Va lues," Personalit)' mid Social Psycholog)' Bulletin 28, no. 6 (2002), pp. 789- 801.

6 M. Rokeach, The Nature of Human Values (New York: Free Press, 1973), p. 56.

7 K. Hodgson, A Rock and a Hard Place: How to Make Ethical Business Decisiom When the Choices Are Tough (New York: AMACOM, 1992), pp. 66- 67.

8 K. Hodg.son, "Adapting Ethical Decision., to a Global Marketplace,· Management Review 81, no. 5 (May 1992), pp. 53- 57. Reprinted by permis.,ion.

9 Vignette based on http://www.canadalearningcode.ca/.

10 G. Hofstede, Culture's Co,isequences: huernatio,ial Differences in Work-Related Values (Beverly Hills, CA: Sage, 1980); G. Hofstede,

Cul111res and Organizatio11S: Software of the Mind (London: McCraw- Hill, 1991); G. Hofstede, "Cultural ConstrainL< in Management Theories, • Academ)' of Management Executive 7, no. 1 (1993), pp. 81 - 94; G. Hofstede and M. F. Peterson, "National Values and Organizational Practices,• in Handbook of Organizational Culture and Climate, ed. N. M. Ashkanasy, C. M. \.Vilderom, and M. F. Peterson (Thousa nd Oaks, CA: Sage, 2000), pp. 401- 416; and G. Ho fstede, Culture's Consequences: Comparing Values, Behaviors, histitutio,is~ mid Organizatio,is across Nations, 2nd ed. (Thousand Oaks, CA: Sage, 2001 ). For criticism of th is research, see B. McSweeney, "Hofstede's Model of National Cultural Di fferences a nd T heir Consequences: A Triumph o f Faith- A Fa ilu re of Analysis; Human Relations 55, no. 1 (2002), pp. 89- 118.

11 G. Hofstede, "Dimensionalizing Culture.<: The Hofstede Model in Context: Online Readings in Psychology and Culture, Unit 2, 2011, http://scholarworks.gvsu.edu/o rpc/ vol2/ iss 1 / 8.

12 G. Hofstede, "Dimensionalizing Culture.<: The Hofstede Model in Context: Online Readings in Psychology and Culture, Unit 2,

2011, http://scholarworks.gvsu.edu/o rpc/ vol2/ iss 1 / 8.

13 V. Taras, 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 Psycholog,• 95, no. 5 (2010), pp. 405- 439.

14 M. Javidan a nd R. J. House, "Cultural Acumen for the Global Manager. Les.,ons from Project GLOBE,• Organizational Dynamics 29, no. 4 (2001 ), pp. 289 - 305; a nd R. J. House, P. J. Hanges, M. Javida n, a nd P. ""· Dorfman, eds., Leadership, Culwre, and Organizatiom: The GLOBE S111dy of 62 Societies (Thousand Oaks, CA: Sage, 2004).

15 J. P. Meyer, D. J. Stanley, T. A. Jackson, K. J. Mel nnis, E. R. Maltin, a nd L. Sheppard, 'Affective, Normative, a nd Conti nua nce Commitment Levels Across Cultures: A Meta-analysis,• Journal of Vocational Behavior 80, no. 2 (2012), pp. 225-245.

16 B. Meglino, E. C. Ravlin, and C. L. Ad kins, ' A Wo rk Va lues App roach to Corporate Cu ltu re: A Field Test of the Va lue Congruence Process and Its Relationship to Individual Outcomes,•

Journal of Applied Ps)'chology 74 (1989), pp. 424-432.

17 B. Z. Posner, J. M. Kouzes, and W. H. Sch midt, "Shared Va lues Make a Differe nce: An Empirical Test of Corporate Culture, •

Human Resource Management 24 ( 1985), pp. 293- 310; a nd A. L. Balazas, "Value Congruency: The Case of the 'Socially Respon.,ible' Firm," Journal of Bminess Research 20 (1990), pp. 171- 181.

18 C. A. O'Reill y, J. Chatman, a nd D. Caldwell, ' People a nd Organizational Culture: A Q-Sort Approach to Assessing Person. Organizatio nal Fit; Academ)' of Management Journal 34 (1 991 ) , pp. 487- 516.

Endnotes 557

19 C. Enz a nd C. K. Schwen k, ' Pe rforma nce a nd Sh aring of Organizational Value,· (paper presented at the annual meeting of the Academy of Management, Washington, DC, 1989).

20 See, for example, The Multige11erational Workforce (Alexandria, VA: Society for Human Resource Management, 2009); and M. Adams, Sex in the Snow (Toronto: Penguin, 1997).

21 J. Timm, ' Leadership Q&A: Robert Dutton,· Canadian Business, June 22, 2011 .

22 K. \.V. Smo la and C. D. Sutton, ' Genera tio nal Diffe re nces: Revisiting Generational Work Values for the New Millennium: Joumal of Orga11izational Behavior 23 (2002), pp. 363- 382; a nd K. Mellah i and C. Guermat, ' Doe., Age Matter? An Empirical Examination of the Effect of Age on Ma nageria l Values and Practices in India,· Journal of World Business 39, no. 2 (2004), pp. 199- 215.

23 B. Malcolm, ' Millennials Now Represent the Largest Generation in the Canadian Workforce: January 2, 2017, Ravenhill Croup Incorporated, http://ravenhiIlgroup.com/ millennials-canadian- workforce/ .

24 E. Parry and P. Urwin, ' Generational Di fferences in Work Values: A Review of Theory a nd Evidence," I,uernatio,ial Journal of Manageme11t Reviews 13, no. 1 (2011), pp. 79- 96.

25 J. M. Twenge, S. M. Ca mpbell, B. J. Hoffman, a nd C. E. Lance, "Generational Difference.'i'. in \+Vork Values: Leisure and Extrinsic Values Increasing. Social and Intrinsic Values Decreasing. "' Journal of Management 36, no. 5 (2010), pp. 111 7- 1142.

26 Based on P. Loriggio, 'Teen \<\!ho 'A'on Google Prize Juggles School \<\fork with Science Fair,• Macle1111 's, December 27, 2013; and A. Kingston, ' Get Ready for Generation z; Maclea11's, July 15, 2014.

2 7 Statistics Canada, Jmmigratio,i and Ethnocultural Diversity in Canada (Cata logue no. 99-0 10-X2011001) (Ottawa: Statistic., Canada, 2013). Unfortunately these numbers have not been updated due to cutbacks in data collected by the Canadian government.

28 The source for projections in the paragraph is J.· D. Morency, E. C. Malen fant, and S. Macisaac, Immigration and Diver.sity: Population Projections for Canada and Its Regions, 2011 to 2036 (Cata logue Number 91-551-X) (Ottawa: Statistics Canada, 2017).

29 https://www.brooki ngs.edu/ b log/b rookings-now/ 2013/ 10/ 03/ what-percentage-of-u-s-population-is-foreign-born/ .

30 Stati,;:tics Canada, Jmmigratio,i and Ethnocultural Diversity in Canada (Cata logue no. 99-0 10-X2011001) (Ottawa: Statistic., Canada, 2013).

31 Sta tis tics Canada, ' 2011 Census of Popula ti o n: Lingu is tic Characteristics of Canadians,· The Daily, October 24, 2012.

32 Sta tis tics Canada, ' 201 1 Census of Populati o n: Lingu is tic Characteristics of Canadians,· The Daily, October 24, 2012.

33 B. Leber, "Police-Reported Hate Cri me in Canada,• Statistic., Canada, Juristat (85-002-X), June 13, 2017.

34 M. Isaac, ' Ins ide Uber's Aggressive, Unre.<trai ned Workp lace Culture,• New York Times, February 22, 2017, p. A 1.

35 A. Bars~)', S. A. Kaplan, and D. J. Beal, "Just Feelings? The Role of Affect in the Formation of Organizational Fairness Judgments,• Joun,al of Management, January 2011, pp. 248- 279; J. A. Mikels, S. J. Magl io, A. E. Reed, and L J. Kaplowitz, ' Should I Co with My Cut? Investigating the Benefi ts of Emotion-Focused Decision Making, · Emotion, August 2011 , pp. 743- 753; and A. J. Ro jas Tejada, 0. M. Loza no Ro jas, M. Navas Luque, and P. J. Pe rez Moreno, ' Prejudiced Attitude Measurement Using the Rasch Scale Model; Ps)'chological Reports, October 2011 , pp. 553- 572.

36 M. Ri ketta, "The Causa l Relation between Job Attitude., and Performance: A Meta-analysis o f Panel Studies,• Journal of Applied Psychology 93, no. 2 (2008), pp. 472-481.

37 D. P. Moynihan and S. K. Pandey, "Finding 'A1orkable Levers over \<\fork Motivation: Compa ring Job Satisfaction, Job Involvement,

558 Endnotes

and Organizational Commitment," Admi,iistratio,i & Society 39, no. 7 (2007), pp. 803- 832.

38 For problems with the concept of job satisfaction, see R. Hodson, 'Workplace Behaviors," Work and Occupations, August 1991, pp. 271 - 290; and H. M. Weiss and R. Cropanzano, 'Affective Events Theory: A Theoretical Discussion of the Structure, Causes and Consequence.Ii of Affective Experiences at Work," in Research i11 Organizational Behavior, vol. 18, ed. 8. M. Staw a nd L. L. Cummings (G reenwich, CT: JAi Press, 1996), pp. 1- 3.

39 ' O ne-half of Working Popu latio n Unh appy In Job: Survey,• Ca11adia1t HR Reporter, May 2, 2016, http://W\,~v.hrreporter.com/ a rticle/2 7 4 61 -o ne-h alf-of-worki ng-popu l atio n-u nhappy-i n- job-survey/.

40 J. Barling, E. K. Kelloway, and R. D. Iverson, 'High-Quality Work, Job Satisfaction, and Occupational lnjurie.<, • Joumal of Applied

Psychology 88, no. 2 (2003), pp. 276- 283; and F. W. Bond and D. Bunce, 'The Role of Acceptance and Job Contro l in Mental Hea lth, Job Satisfaction, and Wo rk Performance: Journal of Applied Ps)'chology88, no. 6 (2003), pp. 1057- 1067.

41 Y. Ceorgell is and T. Lange, ' Traditiona l versus Secul ar Values and the Job-Life Satisfaction Relationship across Europe,· British Jo11mal of Ma11ageme1tt 23 (2012), pp. 437- 454.

42 S. E. Humphrey, J. D. Nahrgang, and F. P. Morgeson, 'Integrating Motivational, Social, and Contextual \+Vork Design Features:

A Meta-a nalytic Summary a nd Theo retica l Extension of the Work De.sign Literature: Joumal of Applied Ps)'chology 92, no. 5 (2007), pp. 1332- 1356; and D.S. Chiaburu and D. A. Harrison, ' Do Peers Make the Pl ace? Conceptual Synthesis a nd Meta- a nalysis of Coworker Effect on Perceptions, Attitudes, OCBs, and Performance,• Jo11mal of Applied Psychology 93, no. 5 (2008),

pp. 1082- 1103.

43 K. H. Fong and E. Snape, 'Empowering Leadersh ip, Psychological

Empowerment and Employee Outcomes: Testing a Multi-Level Mediating Model,· British Joumal of Ma1tageme11t 26 (2015), pp. 126- 138.

44 S. Ronen, M. Mikulincer, "Predicting Employees' Satisfactio n and Burnout from Managers' Attach ment and Caregiving Orientations," Europea,i Jounial of Work and Orga,iizational Psyclwlog)' 21, no. 6 (2012), pp. 828- 849.

45 A. Ca lvo-Salguero, J.· M. Salinas Martinez-de-Lecea, and A.·M. Carrasco-Conza lez, 'Work-Family and Fami ly-\.Vork Conflict: Does Intrinsic-Extrinsic Satisfaction Mediate the rrediction of Genera l Job Satisfaction?" The Jo11mal of Ps)'cl1ology 145, no. 5 (2011 ), pp. 435-461.

46 J. Zhang, Q. Wu, D. Miao, X. Yan, a nd J. Peng, "The Impact of Core Self-Evaluations on Job Satisfaction: The Mediator Role of Career Commitment,· Social Indicators Research 116, no. 3 (2014),

pp. 809- 822.

47 T. A. Judge, C. J. Thore.<en, J. E. Bono, and C. K. Patton, "The Job Satisfaction- Job Performa nce Relation.ship: A Qualitative and Quantitative Review,• Psychological Bulletin, May 2001, pp. 3 7 6-407.

48 D. \.V. Organ, Orga1tizario11al Citizenship Behavior: The Good Soldier Syndrome (Lexington, MA: Lexi ngton Books, J 988), p. 4.

49 See P. M. Podsa koff, S. 8. MacKenzie, J. 8. Pa ine, and D. C. Bach rach, .. O rganizational Citizenship Behaviors: A Critica l Review of the Theoretical and Empirical Literature and Suggestions for Futu re Re.sea rch: Journal of Ma11age111e111 26, no. 3 (2000), pp. 513-563.

50 8. J. Hoffman, C. A. Blai r, J. P. Maeriac, and D. J. \.Voeh r, 'Expanding the Criterion Domain? A Quantitative Review of the

OCB Literature: Joumal of Applied Ps)'cl1ology 92, no. 2 (2007), pp. 555-566.

51 8. 8. Reiche et al., "\.Vhy Do Managers Engage in Trustworthy

Behavior? A Multilevel Cross-Cultural Study in 18 Countrie.,: Perso1t11el Ps)'clwlogy 67 (2014), pp. 61 - 98.

52 D.S. Chiaburu a nd D. A. Harrison, "Do Peers Make the Place? Conceptual Synthesis and Meta-analysis of Coworker Effect on Perceptions, Attitudes, OCBs, and Performance," Jo11mal of Applied Psychology 93, no. 5 (2008), pp. 1082- 1103.

53 R. ll ies, I. S. Fulmer, M. Spi tz mu lle r, and M. D. Joh nson,

"Personality and Citizenship Behavior: The Mediating Role of Job Satisfaction,· Jo11mal of Applied Psychology94 (2009), pp. 945- 959.

54 C. L. Le mo ine, C. K. Parsons, a nd S. Kansara, 'Above and Beyond, Aga in and Agai n: Self-Regulatio n in th e Aftermath of Organizational Citizensh ip Behaviors,• Journal of Applied Psychology JOO, no. I (201 5), pp. 40-55.

C. Vandenbe rghe, K. Ben te in, R. Michon, J. Chebat, M. Tremblay, and J. Fils, 'An Examination of the Role of Perceived Support and Emp loyee Commitment in Emp loyee-Customer Encounters,• Journal of Applied Ps)'chology 92, no. 4 (2007), pp. 1177- 1187; and M. Schulte, C. Ostroff, S. Sh mulyian, and A. Kinicki, "Organizational Climate Configurations: Relationsh ips to Collective Attitudes, Customer Satisfaction, and f inancial Performance: Jo11m11I of Applied Psyclwlogy94 (2009), pp. 618-634.

8. Taylor, "\<Vhy Amazon Is Copying Zappo., and Paying Employees

to Qui t," Harvard B11si11ess Review, April 14, 2014, https:// hb r.o rg/ 2014 /04 /why-amazon -is-copyi ng-zappos-a nd-paying- employees-to-q uit/.

J. Barling, E. K. Kelloway, and R. D. Iverson, "High-Quality Work, Job Satisfaction, and Occupatio nal Injuries: Journal of Applied Ps)'cl1ology 88, no. 2 (2003), pp. 276- 283; and F. W. Bond a nd D. Bunce, "The Role of Acceptance a nd Job Control in Menta l Health, Job Satisfaction, and Work Performa nce,• Journal of Applied Psycl1ology 88, no. 6 (2003), pp. 1057-1067.

Y. Georgellis and T. La nge, "'frad itional versus Secular Value.< and the Job-Life Satisfaction Relationship acrO."-< Europe,• British Jo11mal of Management 23 (2012), pp. 437- 454.

0. Stavrova, T. Sch losser, a nd A. Baumert, "Life Satisfactio n and Job-Seeking Behavio r of the Unemp loyed: The Effect of Individual Difference.< in Justice Sen.<itivity, • Applied Ps)'cl1ology:

An hilemational Review 64, no. 4 (2014), pp. 643- 670.

J. Zhou a nd J. M. George, ''A'h en Job Dissatisfaction Leads to Creativity: Encouraging the Expression of Voice." Academ)' of Management Jo11mal, August 2001, pp. 682- 696; J. 8. O lson- Bucha nan a nd 'A'. R. Boswell, ' The Role of Employee Loyalty a nd Formality in Voicing Discontent: Journal of Applied Ps)'clwlogy, December 2002, pp. 1167- 1174; and A. Davis-Blake, J. P. Broschak, a nd E. George, "Happy Together? How Using Nonstandard Workers Affects Exit, Voice, and Loyalty a mong Standard Employees: Academ)' of Ma11ageme11t Jo11mal 46, no. 4 (2003), pp. 475- 485.

A. J. Nyberg and R. E. Ployhart, 'Context-Emergent Turnover (CET) Theory: A Theory of Collective Turnover,· Academy of Management Review 38 (2013), pp. 109- 131.

P. E. Spector, S. Fox, L. M. Penney, K. Bruursema, A. Coh, a nd

S. Kessler, "111e Dimen.<ionality of Counterproductivity: Are All Counterproductive Behaviors Created Equal?" Joumal of Vocatio11al Behavior 68, no. 3 (2006), pp. 446-460; and D. S. Chiaburu and D. A. Harrison, 'Do Peers Make the Place? Conceptua l Synthesis and Meta-ana lysis of Coworker Effect o n Perceptions, Attitudes, OCBs, a nd Performance,· Journal of Applied Ps)'clwlogy 93, no. 5 (2008), pp. 1082- 1103.

P. A. O'Keefe, ' Liking Work Really Does Matter,• New York Ti111es, September 7, 2014, p. 12.

D. ll iescu, D. Jspas, C. Su lea, a nd A. ll ie, "Vocat io nal Fit a nd Coun terproductive Work Behaviors: A Self-Regula tion

Perspective: Jo11r11al of Applied Psychology 100, no. I (2015) , pp. 21- 39.

65 S. Gabriel, J. M. Diefendorf(, M. M. Chandler, C. M. M. Pradco, and G. J. Greguras, "The Dynamic Relationship.< o f Work Affect and Job Satisfaction with Perception., of Fit,• Perso1111el Ps)'chology 67 (2014), pp. 389-420.

66 S. Diestel, J. \.Vegge, and K.· H. Sch midt, ' The Impact of Social Context o n the Relationship between Individual Job Satisfaction and Absenteeism: The Roles of Different Foci of Job Satisfaction and Work-Unit Absenteeism,• Academy of Ma11ageme11t Joumal 57, no. 2 (2014), pp. 353- 382.

67 H. Lian, D. L Ferris, R. Morrison, and D. J. Brown, "Blame It o n the Supeivisor or the Subordinate? Reciprocal Relations between Abusive Supervisio n and Organizatio nal Deviance,,. Journal of Applied Ps)'chology99, no. 4 (2014), pp. 651 - 664.

68 T. A. Beauregard, 'Fairness Perceptions of Work- Life Ba lance Initiatives: EffecL'i on Counterproductive Work Behavior," British Joumal of Ma11ageme11t 25 (2014), pp. 772 - 789.

69 D. Jliescu, D. (spas, C. Su lea, and A. Jl ie, ' Vocational Fit and Counterproductive Work Behaviors: A Se(f.fu!gulation Perspective, •

Joumal of Applied Ps)'chology JOO, no. I (2015), pp. 21- 39.

70 S. Gabriel, J. M. Diefendorf(, M. M. Chandler, C. M. M. Pradco, and G. J. Greguras, "The Dynamic Relationships o f Work Affect and Job Satisfaction with Perception., of Fit, • Perso1111el Ps)'chology 67 (2014), pp. 389-420.

71 S. Diestel, J. Wegge, and K.· H. Sch midt, ' The Impact of Social Context o n the Relationship between Individual Job Satisfaction and Absenteeism: The Roles o f Different Foci of Job Satisfaction and Work-Unit Absenteeism,• Academy of Ma11ageme11t Joumal 57, no. 2 (2014), pp. 353- 382.

72 J. F. Ybema, P. G. W. Smulders, a nd P. M. Bongers, 'AntecedenL< a nd Consequence.< of Emp loyee Absenteeism: A Longitud inal Perspective o n the Ro le of Job Satisfaction a nd Burnou t,• European Joumal of Work a11d Orga11izatio11al Psychology 19 (2010), pp. 102- 124.

73 J. P. Hausknecht, N. J. Hiller, a nd R. J. Va nce, ' Work-Un it Absenteeism: Effects of Satisfaction, Commitment, Labo r Market Conditions, and lime, • Academ)' of Ma11ageme11t Joumal 51, no. 6 (2008), pp. 1123- 1245.

74 G. Chen, R. E. Ployhart, H. C. Thomas, N. Anderson, and P. D. Bliese, "The Power of Momentum: A New Model of Dynamic Relationsh ips between Job Satisfaction Change a nd Turnover Intentions,• Academy of Ma11ageme11t Journal, Feb ruary 2011 , pp. 159- 181; a nd R. W. Griffeth, P. v,,1. Hom, and S. Gaertner, 'A Meta-a nalysis of AntecedenL< and Correlates of Employee Turnover: Update, Moderator Tests, and Research Implications for the Next Millennium, · Joumal of Ma11ageme11t 26, no. 3 (2000), p. 479.

75 D. Liu, T. R. Mitchell, T. W. Lee, B. C. Holtom, and T. R. Hinkin, ' When Emp loyees Are Out of Step with Coworkers: How Job Satisfaction Trajectory a nd Dispersion lnOuence Individual· and Unit-Level Voluntary Turnover,• Academy of Ma11ageme11t Joun,al 55, no. 6 (2012), pp. 1360- 1380.

76 T. H. Lee, B. Gerhart, I. Weller, and C. 0. Trevor, ' Understanding Voluntary Turnover: Path-Specific Job Satisfaction Effects and the Importance of Unsolicited Job Offers,· Academy of Ma11ageme11t Joumal SJ, no. 4 (2008), pp. 651- 671 .

77 K. Jiang. D. Liu, P. F. McKay, T. W. Lee, a nd T. R. Mitchell, "V,,lhen and How Is Job Embeddedness Predictive of Turnover? A Meta· a nalytic Investigation: Joun1al of Applied Psychology 97 (2012), pp. 1077- 1096.

78 G. J. Blau and K. R. Boal, ' Conceptualizing How Job Involvement and Orga n izat iona l Com mit me nt Affect Tu rnover and Absenteeism: Academ)' of Ma11ageme11t Review, April 1987, p. 290.

Endnotes 559

0 . N. Solinger, W. van Olffen, and R. A. Roe, ' Beyond the Three· Component Model of O rganizational Commitment,· Joumal of Applied Psycholog,• 93 (2008), pp. 70- 83.

N. J. Allen and J. P Meyer, "The Measurement and AntecedenL< of Affective, Continuance, and Normative Commitment to the O rga nizatio n, · Journal of Occupational Psycholog)' 63 ( 1990), pp. 1- 18; a nd J.P. Meyer, N. J. Allen, a nd C. A. Smith, "Commitment to Orga nizations a nd Occupatio ns: Extension and Test of a Three-Component Conceptualization,· Joumal of Applied Psycholog,• 78 (1993), pp. 538- 551.

M. Riketta, 'Attitud inal Organizationa l Commitment and Job rerformance: A Meta.analysis, ... Journal of Organizational Behavior, March 2002, pp. 257- 266.

T. A. \<\fright a nd D. G. Bonett, "The Modera ting Effects of Employee Tenu re o n th e Relat ion between Orga nizatio nal Commitment and Job Performance: A Meta-ana lysis: Journal of Applied Psycholog,•, December 2002, pp. 1183- 1190.

T. W. H. Ng, D. C. Feldman, and S.S. K. Lam, "Psychological Contract Breaches, Organizational Commitment, and Innovation· Related Behaviors: A Latent Growth Modeling Approach,· Joumal of Applied Ps)'cltology 95 (2010), pp. 744- 751.

See, for example, W. Ho m, R. Katerberg, and C. L. Hul in, "Comparative Examinatio n of Three Approaches to the rrediction ofTurnover, • Joumal of Applied Psidwlog,•, June 1979, pp. 280- 290; H. Angle and J. Perry, "Organizational Commitment: Individual and O rganizational Influence,• Work and Occupations, May 1983, pp. 123- 146; J. L Pierce a nd R. B. Dunham, ' Orga nizatio nal Comm itment: Pre-Emp loyme nt Propensity and Initial Work Experiences,· Joumal of Management, Spring 1987, pp. 163- 178; and T. Simons and Q. Roberson, ' Why Managers Should Care about Fairne.o;s: The Effects of Aggregate Justice Perceptions on Organizational Outcomes,· Joumal of Applied Psi,:hology 88, no. 3 (2003), pp. 432- 443.

Y. Gong. K. S. Law, S. Chang. and K. R. Xin, ' Huma n Resources Management a nd Firm Performance: The Differential Role of Managerial Affective and Continuance Commitment," Jounial of Applied Psycholog,• 94, no. I (2009), pp. 263- 275.

A. A. Luchak and I. R. Gell atly, 'A Comparison of Linear and Nonlinear Relations between Organizational Commitment and \<\fork Outcomes: Joumal of Applied Psychology 92, no. 3 (2007), pp. 786- 793.

See, for example, J.M. Diefendorff, D. J. Brown, and A. M. Kamin, "Examining the Roles of Job Involvement and Work Centra lity in Pred icting Organizationa l Citizensh ip Behaviors a nd Job Performance,· Joumal of Organizational Behavior, February 2002, pp. 93- 108.

Based on G. J. Blau a nd K. R. Boal, "Conceptualizing How Job Involvement and Organizational Commitment Affect Tu rnover and Absenteeism: Academy of Ma11ageme11t Review, April 1987, p. 290.

G. Chen a nd R. J. Klimoski, "The Impact of Expectations on Newcomer Pe rform a nce in Tea ms as Med ia ted by \+Vo rk Characteristics, Socia l Exchanges, and Empowennent, " Academy of Management Joumal 46, no. 5 (2003), pp. 591- 607; A. Ergeneli, G. Saglam, and S. Metin, ' Psychological Empowerment and Its Relationship to Trust in Immediate Managers, " Journal of Business Research, Januaty 2007, pp. 41- 49; and S. E. Seibert, S. R. Silver, and W. A. Randolph, 'Taking Empowerment to the Next Level: A Multiple-Level Model of Empowerment, Pe rformance, and Satisfaction, · Academy of Ma11ageme11t Joumal 47, no. 3 (2004), pp. 332- 349.

B. J. Avolio, \.V. Zhu, W. Koh, and P. Bhatia, "Transformational Leadership and Organizational Commitment: Mediating Role of Psychological Empowerment and Moderating Role of Structural Dista nce: Joumal of Orga11izatio11al Behavior 25, no. 8 (2004), pp. 951- 968.

560 Endnotes

91 ' 100 Best Companies to Work For,• Fortune, February 2015, http:// www.fortune..com/ best·companies/.

92 L. Rh oades, R. Eisenberge r, a nd S . Arm e li, "Affective Comm itm ent to the Organization: The Contribution of Perceived Organizational Support: Joumal of Applied Ps)'clwlogy 86, no. 5 (2001 ) , pp. 825- 836.

93 B. L Rich, J. A. Lepine, and E. R. Crawford, ' Job Engagement: Anteceden ts and Effects o n Job Performance, · Academy of Management }oumal 53, no. 3 (2010), pp. GI 7- 635.

94 B. L Rich, J. A. Lepine, and E. R. Crawford, ' Job Engagement: Anteceden ts and Effects o n Job Performance, · Academy of Management Joumal 53, no. 3 (2010), pp. GI 7- 635; and J. B. James, S. McKechnie, and J. Swanberg, ' Predicting Employee Engagement in a n Age-Diverse Reta il Workforce,• }oumal of OrganiZ1Jtional Behavior 32, no. 2 (2011 ), pp. 173- 196.

95 ' Building a Better Workforce: PROFIT, February I G, 2011, http:// www.profitguide.com/ manage-grow/ huma n-resources/ building· a-better-workforce-30073.

96 ' Building a Better Workforce: PROFIT, February I G, 2011, http:// www.profitguide.com/ manage-grow/ huma n-resources/ building· a-better-workforce-30073.

97 T. Armstrong and R. \<\fright, "Em ployee Engagement: Leveraging the Science to Inspire Great Performance,• The Conference Boord of Canada, July 13, 2016.

98 S. Crabtree, ' Wo rldwide, 13•/o of Em ployees Are Engaged at Work: Gallup World, October 8, 2013; and http://W\,~v.molson· coors.com/ en/ Responsi b i Ii ty / \¥hat o/o20Matters•/o20To%20Us/ Em ployees%20Com mu nity/ O ur%20Em ployees/ Engagement. aspx.

99 Based o n C. Chase, "Butler Charles MacPherson Is Taking Ford of Canada's Service Advisors to School,• Driving, August 8, 2014, h t tp://d rivi ng.ca/ fo rd/ au to· news/ news/ how-a. butler. is-help· ing·tO· improve. fords.customer·service; H. Kafoury, .. Creating Customer Loyalty, One Employee at a Time: Engaging Workers Can Start with Mutua l Respect between Managem ent and Staff," Gazette (Mo ntrea l), Ja nuary 21, 2014, p. 82; a nd J. Lofa ro, ' Charl es the Butler in Ottawa to Train Ford Employees Proper Etiquette,· Metro (Ottawa), August G, 2014, h ttp://metronews.ca/ news/ Ottawa/ 1119408/charles-the-butler -i n-o ttawa-to-trai n-ford· employees-proper-etiquette/ .

100 N. R. Lockwood, Leveraging Emplo)'ee Engagement for Competitive Advantage (A lexa nd ria, VA: Society for Human Resou rce Ma nagement, 2007); a nd R. J. Vance, Employee Engagement and Commitment {Alexandria, VA: Society fo r Huma n Resource Management, 2006).

101 N. R. Lockwood, Leveraging Emplo)'ee Engagement for Competitive Advantage (A lexa nd ria, VA: Society for Human Resou rce Ma nagement, 2007); a nd R. J. Vance, Employee Engagement and Commitment (Alexandria, VA: Society fo r Huma n Resource Management, 2006).

102 ' Employee Engage ment,• Workforce Manageme,11, Feb ruary 2013, p. 19; and ' The Cornerstone O n Demand 2013 U.S. Emp loyee Report: Cornerstone OnDemand, 2013, http://\\~Vw. cornerstoneondema nd .com/ resources/ research/survey· 2013.

103 ' Employee Engagement: Workforce Manageme,11, February 2013, p. 19; and "The Come.,,'tone On Demand 2013 U.S. Employee Report,· Comerstone OnDenumd, 2013, http://\V\V\v.comerstoneondemand.com/ resources/ research/survey-2013.

104 Y. Brunetto, S. T. T. Teo, K. Shacklock, a nd R. Farr-\.Vharton, ' Emotional Intell igence, Job Satisfaction, Well -bei ng a nd Engagemen t: Exp lai ning O rganisationa l Com mitmen t a nd Turnover Intentions in Policing,,. Human Resource Management Joumal, 2012, pp. 428-441.

105 P. Petrou, E. Demerouti, M. C. W. Peeters, W. B. Schaufeli, and J. Hetland, "Crafti ng a Job on a Daily Basis: Contextual Correlates

and the Li nk to Work Engagement,• Jounial of OrganiZ1Jtional Behavior, November 2012, pp. 1120- 1141.

106 \,V. H. Macey and B. Sch neider, "The Mean ing of Employee Engagemen t,• Industrial and Organizational Ps)'cholog)' I (2008), pp. 3- 30; and A. Saks, "The Meaning a nd Bleedi ng of Employee Engagement: How Muddy Is the \<\later?' Industrial and OrganiZ1Jtional Ps)'clwlogy I (2008), pp. 40- 43 .

107 J. M. George, "The Wider Context, Costs, and Benefits of Work Engagement,• European Journal of Work and Organ izational Psychology 20, no. I (2011 ), pp. 53- 59; and J. R. B. Halbesleben, J. Harvey, a nd M. C. Bolino, "Too Engaged? A Conservation of Resources View of the Relationship between Work Engagement and Work Interference with Family,• }oumal of Applied Psyc/Jology 94, no. G (2009), pp. 1452- 1465.

108 Vignette based o n M. Braga, "Ca nad ia n Tech Compa nies Say They Va lue Divers ity - But What Are They Doi ng About It? " CBC News, July II, 2017, h ttp://"~'~v.cbc.ca/ news/ technology/ canada-tech-compa nies-d iversity-reports-2017-1.4194556; a nd http://ladieslearningcode.com/annual report2016/ .

109 A. H. Eagly and J. L. Chin, ' Are Memberships in Race, Ethnicity, and Gender Categories Merely Surface Characteristic.~?" American Psychologist 65 (2010), pp. 934 - 935.

110 \.V. J. Casper, J. H. Wayne, and J. G. Manegold, "\.Vho \.Viii We Recruit?Targeti ng Deep· and Surface. l£vel Diversity with Human Resou rce Policy Advertising. ,. Human Resource Management 52, no. 3 (2013), pp. 311- 332.

111 Corus Entertainment, "Accessibility & Diversity,· acces.sed October, 2014, h ttp://www.corusent.com/ home/ Corporate/AboutCorus/ Accessi bi I i ty Diversity/ tab id/ 2 5 7 2 / Defa u It.as px.

112 N. Girouard, D. Stack, and M. O' Neill-Gilbert, ' Ethnic Differences during Social Interactions of Preschoolers in Same-Ethnic and Cross-Ethnic Dyads,· European Joumal of Developmental Psychology 8, no. 2 (2011), pp. 185- 202.

113 A. Chapin, ' Special Report: Diversity Knocks,· Canadian Business, October 7, 2010.

114 D. A. Thomas and R. J. Ely, ' Making Differences Matter. A New raradigm for Managing D iversity." Harvard Business Review, September 1996, pp. 79- 90; C. L. Holladay and M.A. Quinones, "11,e Influence of Tra ining Focus and Trainer Characteristic.Ii on

Diversity Training Effectiveness," Arodemy of Managemetlt Leamitig and Education 7, no. 3 (2008), pp. 343- 354; and R. Anand a nd M. Winters, ' A Retrospective View of Corporate Diversity Training from J 964 to the Present, • Academy of Management Learning and Education 7, no. 3 (2008), pp. 356- 372.

115 L. Legault, J. Gutsell, and M. lnzlicht, ' Iron ic Effects of Anti· Prejudice Messages,• Psrcl1ological Science, July 6, 2011, http://\VW\V. psychologicalscience.org/index.php/ news/ releases/ ironic-effectS· of -an ti· p rej u d ice· messages. h tm I .

116 http:/fbetakiLcom/ accessnow-founder-maayan-ziv-talks-b tLsiness· b enefi ts-of. accessi bi I i ty ·at· tech to/ .

117 A. Pomeroy, ' Cultivating Female Leaders,· HR Magazine, February 2007, pp. 44- 50.

118 Based on P. Jeffery, ' A Call to Action,• FP Magazine, June 21, 2011.

119 Based on A. L. Molinsky, T. H. Davenport, B. Iyer, and C. Davidson, •3 Skills Every 21st-Century Ma nager Needs,• Harvard Business Review, January/ February 2012.

120 P. C. Earley and E. Mo.sakowski, "Cultural Intelligence,· Harvard Business Review, October 2004, pp. 139- 146.

121 S. S. Ramalu, R. C. Rose, N. Kumar, and J. Uli, "Doing Business in Global Arena: An Examinatio n of the Relationship between Cultural Intell igence a nd Cross-Cultural Adj ustment,· Asian Academ)' of Manageme,11 Joumal 15, no. I (2010), pp. 79- 97.

122 M. Gorji and H. Ghareseflo, "The Survey of Relationship between Cultural Intelligence and Emotional Intelligence with Employee's

Performance," h1ten1ational Proceedings of Economics Development & Research 25 (2011 ), p. 175.

123 J. Sanchez.Burks, F. Lee, R. Nisbett, I. Choi, S. Zhao, and J. Koo, "Conversing across Cultures: Ea.,;t.West Communication Style.,; in Work and Nonwork Contexts,• Journal of Perso11ality a11d Social Psycholog)' 85, no. 2 (2003), pp. 363- 372.

124 P. C. Earley and E. Mosakowski, •cultural Intelligence,• Harvard Bmi11ess Review, October 2004, pp. 139- 146.

125 A. L Molin.sky, T. H. Davenport, 8. Iyer, and C. Davidson, •3 Skills Every 21st-Century Manager Needs," Harvard Busi,iess Review, January/February 2012.

126 World Business Culture, ·ooing Busines., in South Korea,· http:// www.worldbusinesscuhure.com/Business-in·South-Korea.html.

127 C. Osbo rne, ·south Korea H its 100•/o Ma rk in Wi re less Broadband; CNET, July 23, 2012, h ttp://www.cnet.com/ news/ south-korea-hits- JOO-mark-in-wireless-broadband/.

128 Based on E. Snape, C. Lo, and T. Redman, 'The Three-Component

Model of Occupational Commitm ent: A Com parat ive Study of Chi nese and British Accountants,· Journal of Cross-Cultural Ps)'chology, Novem ber 2008, pp. 765- 781; and Y. Cheng and M. S. Stockdale, 'The Va lid ity of the Th ree-Component Model of Organizational Commitment in a Chinese Context," Jounwl of Voca1io11al Behavior, June 2003, pp. 465- 489.

129 J.M. Twenge, VJ. K. Campbell, a nd E. C. Freeman, •Generational Differences in Young AdulLs' Life Goals, Concern for O thers, and Civic O rientation, I 966- 2009, • Journal of Perso11alit)' a11d Social Psychology 102 (2012), pp. 1045- 1062; M. Hartman, •Millennials at Work: Young and Callow, Like Their Parents," New York Times, March 25, 2014, p. F4; J. Jin and J. Rounds, •stability and Change in Work Value.s: A Meta-analysis of Longitudinal Studies,· Journal of Vocatio11al Behavior 80 (2012), pp. 326- 339; C. Lou rosa- Ricardo, "How America Gives;" Wall Street Jountal, December 15, 2014, p. R3; "Millennials Rule,• New York Times Educa1io11 Life, April 12, 2015, p. 4; G. Ruffenach, •A Generational Gap: Giving to Cha rity; Wall Street Journal, Ja nuary 20, 2015, p. R4; a nd S. VI/. Lester, R. L. Standifer, N. J. Schultz., and J.M. \<\findsor, •Actual versus Perceived Generational Difference.,; at \+Vork: An Empirical Examination," Journal of Leadership & Orga11izatio11al Studies 19 (2012), pp. 341- 354.

130 L. G ilman, •Memo App Lets Workers Vent Anonymously about the Bo.«,· Wall Street Journal, January 21, 2015, p. 8 7; Glassdoor. com; A. S. McCance. C. D. Nye, L. Wang, K. S. Jones, and C. Chiu, •Alleviating the Burden of Em otional Labor. The Role of Social Shari ng,· Journal of Ma11ageme11t, February 2013, pp. 392- 415; R. E. Silverman, •Are You Happy in Your Job? Bosse., Push Weekly Surveys; \.Vall Street Journal, December 3, 2014, pp. BI, 84; and R. E. Silverm an, ·workers Really Do Put on a Happy Face for the Bo.«," Wall Street Journal, January 29, 2015.

131 A. 8. Bakker, M. Tims, a nd D. Derks, •Proactive Perso nality and Job Performa nce: The Ro le of Job Craft ing and Wo rk Engagement," Huma11 Relatiol!S, October 2012, pp. 1359- 1178; A. Wrzesniewski, J. M. Berg, and J. E. Dutton, 'Turn the Job You Have into the Job You Want," Harvard Busi,iess Review, June 2010, pp. 114- 117; A. Wrzesniewski and J. E. Dutton, ·crafting

a Job: Revisioning Employees as Active Crofters of Their Work," Academ)' of Ma11ageme111 Review 26 (2010), pp. 179- 201; and G. R. Slemp and D. A. Vella-Brodrick, •optimising Employee Menta l Health: The Relationship between Intrinsic Need Satisfaction, Job Crafting, and Employee \¥ell-Being,• Journal of Happi11ess Studies 15, no. 4 (2014), pp. 957- 977.

132 S. Goldenberg, •Exposing Hid den Bias at Google.• New York Times. September 25, 2014, pp. BI, 89; S. Lohr, "The Google Formula for Success," New York Times, September 29, 2014, p. 88; N. Vslingfield, •Microsoft Chief Backpedals on Women's Pay; New York Times, October JO, 2014, pp. 87- 88; a nd E. Zell, Z. Krizan, and S. R.

En d note s 561

Teeter, .. Evaluating Gender Simi larities and Differences Usi ng Metasynthesis," America11 Psychologist 70 (201 5), pp. 10- 20.

OB on the Edge: Stress at Work

1 Based on W. Immen, · in This Office, Desks Are for \<1/orking, Not Eating Lunch," Globe a11d Mail, Feb ruary 27, 2017, h ttps:// beta. theglobeandm ai I .com/ report -o n.business/i ndustry· news/ property-report/in-this-office-desks-are-for-working-not-eating- Junch/article341 53148/; and A. O'Nei ll, · ooing Away Vslith ' Dining al Desko:· Globe a11d Mail, May 26, 2017, https://beta. theglobea ndm a i I .com/ report-on· busi ness/ ca reers/leadersh ip- Jab/doi ng-away-wi th-dini ng-al-desko/article3 5083 814 /.

2 Based on Statistics Canada, "Perceived Ufe Stress, Qu ite a Lot, by Sex, by Province and Territory," last modified June 12, 2014, http:/ /\\~Vw.statcan.gc.ca/ta ble.<-tab I eaux/ sum-so m/ 101 / cstO I/ health 107b-eng.htm .

3 http://W\,~v.cbc.ca/ news/ business/ ca nada-economy-depression- anixety- J.3744300.

4 J. O'Kane, "Ca nada's Work- Life Balance More Off-Kilter Tha n Ever," Globe and Mail, October 25, 2012.

5 J. O'Kane, "Ca nada's Work- Life Ba lance More Off-Kilter Tha n Ever," Globe and Mail, October 25, 2012.

6 Based on Statistics Canada, "Perceived U fe Stress, Qu ite a Lot, by Sex, by Province and Territory," last modified June 12, 2014, http:/ /\\~Vw.statcan.gc.ca/ta ble.<-tab Jeaux/sum-so m/ 101 / cstO I/ health 107b-eng.htm. Note: Statistics Canada has not collected more recent data due to cutbac~ by the Harper government.

7 Adapted from R. S. Schuler, ·oefinit io n and Conceptualization of Stress in Organizations," Organizational Behavior and Human Performa11ce, Apri l 1980, p. 189. For an updated review of definitio ns, see C. L. Cooper, P. J. Dewe, and M. P. O'Driscoll, Organizational Stress: A Review and Critique of'f11eory, Research, and Applicatiol!S (Thousand Oaks, CA: Sage. 2002).

8 See. for example. M.A. Cavanaugh,\¥. R. Bo.swell, M. V. Roehling, and J. Y.l. Boudreau, "An Empirica l Examination of Self-Reported Work Stress among U.S. Managers,• Joun,al of Applied Ps)'cltology, February 2000, pp. 65- 74.

9 S. Shellenbarger, "\<I/hen Stress Is Good for You," Wall Street Journal, January 24, 2012, pp. DI , 0 5 .

10 S. Shellenbarger, "\<I/hen Stress Is Good for You," Wall Street Journal, January 24, 2012, pp. DI, 0 5 .

11 N. P. Podsakoff, J. A. LePine, a nd M. A. LePi ne, "Differe ntial Challenge-Hindrance Stre.ssor Relationsh ips with Job Attitudes, Turnover Intentions, Turnover, and Withdrawal Behavior: A Meta· analysis,• Journal of Applied Psycl1olog,• 92, no. 2 (2007), pp. 438- 454; and J. A. LePine, M. A. LePine, and C. L. Jackson, •challenge and Hindrance Stress: Relationships with Exhaustion, Motivation to Learn, and Learning Performance. • Journal of Applied Ps)'cholog)', October 2004, pp. 883- 891.

12 L W. Hunter and S. M. 8. Thatcher, •Feeling the Heat: EffeCL< of Stress, Commitm ent, a nd Job Experience on Job Perform ance." Academ)' of Ma11ageme111 Journal 50, no. 4 (2007), pp. 953- 968.

13 J. C. Wallace, 8. D. Edwa rds, T. Arno ld, M. L. Frazier, and D. M. Fi nch, "Work Stre.ssors, Ro le-Based Performance, and the Moderat ing In fluence of O rganizat iona l Support,• Journal of Applied Psycl1olog,• 94, no. I (2009), pp. 254- 262.

14 •Most Stressful Jobs of 2017," h ttp://www.careercast.com/ jobs- rated/mo.st-stressful-jobs-2017; and "Least Stressful Jobs of 2017, • http:/ f,V\,~v.ca reercast.com/jobs-rated/least-stressful-jobs-201 7.

15 •stress in Am erica: Payi ng with Our Health," America11 Ps)~hological Associatio11, February 4, 2015, p. 8.

16 J. de Jonge and C. Dorm ann, •stressors, Re.sources, and Strain at Wo rk: A Longitud inal Te.st of the Triple-Match Principle,• Journal of Applied Ps)'cltology 91, no. 5 (2006), pp. 1359- 1374;

562 En dnotes

K. Da niels, N. Bee.<ley, A. Cheyne, a nd V. Wimalasiri, 'Coping Processe.< Linking the Demands-Control-Support Model, Affect and Risky Decisions at \.Vork, • Huma11 Relations 61, no. 6 (2008), pp. 845- 874; and M. van den Tooren and J. de Jonge, 'Managing Job Stress in Nursing: What Ki nd of Resources Do We Need?" Joumal of Advanced Nursing 63, no. 1 (2008), pp. 75- 84.

17 E. A. Rafferty and M.A. Griffi n, 'Perceptions of Organizational Cha nge: A StreS-< and Coping Perspective," Journal of Applied Psyclwlog)' 71, no. 5 (2007), pp. 1154- 1162.

18 R. !l ies, N. Dimotakis, and I. E. De Pater, 'Psychological a nd Physiological Reactions to High \.Vorkloads: Implications for Well-Bei ng,' Person11el Ps)'cl1ologJ1 Summer 2010, pp. 407- 436; A. B. Bakker, E. Demerouti, and A. I. Sanz-Verge!, ' Burnout a nd \<\fork Engagement: The JD- R Approach,· Annual Review of Organizntio11al Psychologr a11d Organizatio11al Behavior I (2014), pp. 389- 411.

19 G. Vv. Evans and D. Johnson, 'Stre.ss and Open-Office Noise,' Joumal of Applied Ps)'chologr, October 2000, pp. 779- 783.

20 T. M. Glo mb, J. D. Ka mmeyer-Mueller, a nd M. Rotundo, 'Emot io na l Labo r De mands and Compe nsat ing Wage Differentials,· Joumal of Applied Psyclwlogr, August 2004, pp. 700- 714; and A. A. Grandey, 'When 'fhe Show Must Go On': Surface Acting and Deep Acting as Dete.nninants of Emotional f.xhatL~tion and Peer. Rated Service Delivery," Academ)' of Manageme,1t Jountal, February 2003, pp. 86- 96.

21 S. Lim, L M. Cortina, and V. J. Magley, "Personal and \.Vorkgroup Incivility: Impact on Work and Health Outcomes,' Joumal of Applied Psyc/1ologr 93, no. 1 (2008), pp. 95- 107; N. T. Buchanan a nd L. F. Fitzgerald, ' Effects of Racial and Sexual Harassment o n Work and the Psychological Well-Being of African American Women,• Journal of Occupational Health Psycholog)' 13, no. 2 (2008), pp. 137- 151; C.R. \¥illness, P. Steel, and K. Lee, 'A Meta· a nalysis of the Antecedents and Consequences of Workplace Sexua l Harassment,· Personnel Ps)'chologr 60, no. 1 (2007), pp. 127- 162; and B. Moreno-Jimenez, A. Rod rfguez-Mui\oz, J. C. Pastor, A. I. Sanz.Verge!, and E. Garro.<a, "The Moderating Effects of Psychologica l Detachment and ThoughL< of Revenge in Workp lace Bullying,• Personality and /11dividual Differe11ces 46, no. 3 (2009), pp. 359- 364.

22 L. Yang, J. Bauer, R. E. Johnson, M. W. Groer, and K. Salo mon, ' Physiologica l Mechanisms T ha t Unde rlie the Effects of lnteractional Unfairness on Deviant Behavior: The Role of Cortisol Activity," Joumal of Applied Psychology 99 (2014), pp. 310- 321.

23 M. T. Schmitt, N. R. Branscombe, T. Postmes, and A. Garcia, "The Consequences of Perceived Discrimination for Psychological \.Vell- Being: A Meta-analytic Review," Psychological Bulletin 140 (2014), pp. 921- 948.

24 J. O'Reilly, S. L Robinson, J. L Berdahl, a nd S. Banki, ' Is Negative Attention Better Than No Attention? The Comparative Effects of Ostracism and Harassment at \<\fork,· Organizatio11 Scie11ce (2014), pp. 774- 793.

25 'Stress in America: Paying with Our Health,• America11 Psidwlogical Association, Februa ry 4, 2015, http://\\~Vw.apa.o rg/news/press/ re I eases/ stre.ss/2 01 4 / stres.s-report. pd f.

26 G. Livingston, "Survey Says: We're Stressed (and Not Loving It},· Globe and Mail, February 2, 2015, https://\\~vw.theglobea ndmail. co m/report ·On -bus iness/ ca reers/ ca reer-ad vice/ Ii fe-a t· work/ survey-says-were-stressed-and-not-loving-it/artide22722102/.

27 Q. Hu, W. B. Schaufeli, a nd T. W. Taris, "The Job Dema nds- Resource.< Model: An Analysis of Additive a nd Joi nt Effects of Demands a nd Re.sources,• Joumal of Vocario11al Behavior 79, no. I (2011), pp. 181- 190.

28 R. S. Schuler, 'Defi nition and Conceptualizatio n of Stress in Organizations," Organizntional Behavior and Human Perfonnance, April 1980, p. 191; a nd R. L. Kah n and P. Byosiere, 'Stress in

O rganizations." Organizational Behavior mid Human Perfonnance, April 1980, pp. 604- 610.

29 M. Kivimiiki, J. Head, J. E. Ferrie, E. Brunner, M. G. Marmot, J. Vahtera, and M. J. Shipley, 'Why Is Evidence o n Job Strain a nd Coronary Heart Disease Mixed? An Illustration of Measurement Challenges in the Whitehall II Study,• Ps)'chosomatic Medici11e 68, no. 3 (2006), pp. 398- 401.

30 M. Borritz, K. B. Christen.sen, U. Bultmann, R. Rugulies, T. Lund, I Andersen, E. Villadsen, F. Didreichsen, and T. S. Krisen.sen, "Impact on Burnout and Psychosocial Work Characteristics on Future Long. Term Sickness Absence, Pro.,pective Re.suits of the Danish PUMA Study among Human Service \,Vorkers, • Joumal of Occupational and E11virom11e111al Medici11e 52, no. 10 (2010), pp. 964- 970.

31 R. ll ie.<, N. Dimotakis, a nd I. E. DePater, "Psychological a nd Physiological Reactions to High Workloads: Implications for 1A'ell- Being, • Person11el Psyclwlo!l)' 63, no. 2 (2010), pp. 407- 463.

32 D. Ortqvist a nd J. Wincent, "Prominent Consequences of Role Stress: A Meta. analytic Review,,. International Journal of Stress Ma11agement 13, no. 4 (2006), pp. 399- 422.

33 J. J. Hakanen, A. B. Bakker, and M. Jokisaari, "A 35-Year Follow-Up Study o n Bu rno ut a mo ng Finn ish Emp loyees,· Journal of Occupatio11al Health PS)c/10/ogy 16, no. 3 (2011), pp. 345- 360; E. R. Crawford, J. A. LePine, and B. L Rich, 'Linking Job Demands and Resources to Employee Engagement and Burnout: A Theoretical Extension and Meta-analytic Test,• Joumal of Applied Ps)'cholO!l)' 95, no. 5 (2010), pp. 834- 848; and G. A. Chung-Yan, "The Nonlinear Effects of Job Complexity and Autonomy o n Job Satisfactio n, Turnover, and Psychological Well-Being,• Joumal of Occupario11al Health Ps)'clwlogr 15, no. 3 (2010), pp. 237- 251.

34 LL Meier, N. K. Semmer, A. Elfering, and N. Jacobshagen, "The Double Meaning of Control: Three-Way Interactions between Internal Resources, Job Control, and Stre.ssors at Work,· Joumal of Occupario11al Health Psi,;liologr 13, no. 3 (2008), pp. 244- 258.

35 E. M. de Croon, J. K. Slu iter, R. W. B. Blonk, J. P. J. Broersen, and M. H. \,V. Frings- Dresen, "Stressful Work, Psychological Job Strain, and Turnover: A 2-Year Prospective Cohort Study of Truck Drivers," Joumal of Applied Ps),;holo!l)', June 2004, pp. 442-454; R. Crapanzano, D. E. Rupp, and Z. S. Byrne, "The Relationsh ip of Emotional Exhaustio n to \<\fork Attitudes, Job Performance, and O rganizational Citizenship Behavio rs,· Joumal of Applied Psycholog)', Feb ruary 2003, pp. 160- 169; and S. Die.<tel and K. Sch midt, "Costs of Simultaneous Coping with Emotional Dis.sonance and Self-Control Demands at Work: Results from Two German Samples,• Joumal of Applied Ps)'chologr 96, no. 3 (2011 ), pp. 643 - 653.

36 S. E. R. Crawford, J. A. LePi ne, a nd B. L. Rich, ' Linking Job Demands and Resources to Employee Engagement and Burnout: A Theoretical Extension and Meta-analytic Test,' Joumal of Applied Psychologr 95, no. 5 (2010), pp. 834- 848.

37 See J. B. Halbesleben, "Sou rces of Social Support a nd Burnout: A Meta-analytic Test of the Conservation of Resource.< Model,• Joumal of Applied Ps)'clwlo!l)' 91, no. 5 (2006), pp. 1134- 1145; N. Bolger a nd D. Arn a rel, 'Effects of Social Support Visibility o n Adjustment to Stre.ss: Experimental Evidence,• Joumal of Applied Psychology 92, no. 3 (2007), pp. 458- 475; a nd C. Fernet, M. Gagne, and S. Austin, 'When Does Quality of Relationsh ips with Coworkers rredict Burnout over Time? The Moderating Ro le of \<\fork Motivation,• Joun,al of Orga11izario11al Behavior 31 (2010), pp. 1163- 1180.

38 J. B. Avey, F. Luthans, and S. M. Jensen, "Psychological Capital: A Po.<itive Resource for Combating Employee Stress and Turnover,• Human Resource Manageme,it, September- October 2009, pp. 677 - 693.

39 See, for example, C. M. Middeldorp, D. C. Cath, A. L Beem, G. Willemsen, and D. I. Boomsma, "Life Events, AnxiotL< Depression, and Personality: A Prospective and Genetic Study,· Ps)'clwlogical

Medici11e 38, no. 11 (2008), pp. J 557- 1565; and A. A. Ul iaszek, R. E. Zinbarg. S. Mineka, M. C. Craske, J.M. Sutton, J. v,,1. Griffith, R. Rose, A. \.Vaters, and C. Hammen, "The Role of Neuroticism a nd Extraversion in the Stre.o;s.Anxiety a nd Stre.~s. Depre.o;sion Relationsh ips: A11xiety, Stress, a11d Copi11g 23, no. 4 (2010) , pp. 363- 381.

40 J. D. Kammeyer-Mueller, T. A. Judge, and B. A. Scott, "The Role of Core Self-Evaluations in the Coping Process,· Jo11mal of Applied Psyclwlog)' 94, no. I (2009 ), pp. I 77- 195.

41 R. J. Burke, A. M. Richardson, and M. Mortinussen, "Workaholism among Norwegia n Managers: Work and Well-Being Outcomes,• Journal of Orga11izatio11al Cha11ge Ma11ageme111 7 (2004), pp. 459-4 70; and \.V. B. Schaufeli, T. W. Taris, and \.V. van Rhenen, "Wo rkaholism, Burnout, and Wo rk Engagement: Th ree of a Kind o r Three Different Kinds of Employee Well-Being. · Applied

Ps)'chology: A11 /111ema1ional Review 57, no. 2 (2008), pp. 173- 203.

42 R. v,,1. Renn, D. C . Alle n, a nd T. M. Hun ing, "Emp ir ica l Examination of Individual-Level Personal ity-Based Theory of Self-Management Failure, • Journal of Orga11izational Behavior 32, no. I (201 I), pp. 25- 43; and P. Grope) and P. Steel. "A Mega-Trial lnve.~tigatio n of Goal Setting, Interest Enhancement, and Energy o n Procrasti nation." Personality and Individual Differences 45, no. 5 (2008), pp. 406- 411.

43 S. Klaperski, B. von Dawans, M. Heinrichs, and R. Fuchs, "Does the

Level of Physical Exercise Affect Physiological and Psychological Responses to Psychosocial Stre.ss in Women?' Psycholog,• of Sport a11d Exercise 14, no. 2 (2013), pp. 266- 274.

44 K. M. Richardson a nd H. R. Rothstein, "Effects of Occupational Stress Ma nagem ent Intervention Programs: A Meta.analysis,"

Jo11r11al of Occupational Health Psychology 13, no. 1 (2008) , pp. 69- 93.

45 V. C. Hahn, C. Binnewies, S. Sonnentag. and E. J. Mojza, "Leaming How to Recover From Job Stress: Effects of a Recovery Training Program on Recovery, Recovery-Related Self-Efficacy, and Well· Being. · Journal of Occupational Health Psrchology 16, no. 2 (2011), pp. 202- 216; and C. Binnewies, S. Sonnentag, and E. J. Mojza, "Recovery during the Weekend and Fluctuations in Weekly Job Performance: A \<\leek-Level Study Exami ni ng Intra-Individual Relationships," Journal of Occupational a,id Orga,iiz.atio,ial Psyclwlog)' 83, no. 2 (2010), pp. 419- 441.

46 "Three Canadian Compa nies Lauded for Employee Well ness Programs." h rreporter.com, December 9, 2016, http://www. hrreporter.com/ anide/ 31948-th ree-canadian-companies-Jauded· for-employee-wellness-programs/ .

47 N. Reese, "10 Simple Ways to Relieve Stress,· July I , 2016, https:// www. heal th) i ne.com/ heal th/ 10-ways-to-rel ieve-stress# I .

48 Sun Life Financial. 51111 Life·Buffett Na1io11al Wellness Sil""')' 2013, 2013, http://"~vw.sunli fe.ca.

49 "Cdn Emp loyers Not Measu ring Well ness Outcomes: Survey,· Benefits Canada, May 4, 2011, h ttp ://\\~vw.benefitscanada. com/ news/ end. em ployers· not· m easuri ng. wel I ness.o u tcomes· survey-16510.

50 E. R. Creenglas., and L. Fiksenbaum, "Proactive Coping. Positive Affect, a nd Well-Be ing: Testing fo r Mediat io n Us ing Pa th Analysis: European Psychologist 14, no. 1 (2009), pp. 29- 39; and P. Miquelon and R. J. Vallerand, "Coal Motives, V\1ell-Being. and Physical Health: Happiness and Self-Realization as Psychological Resources u nder Challenge." Motivation and Emotion 30, no. 4 (2006), pp. 259- 272.

51 M. M. Butts, R. J. Vandenberg. D. M. DeJoy, B. S. Schaffer, and M. C. Wilson, "Individual Reaction., to High Involvement \.Vork Processes: Investigating the Ro le of Empowenn ent and rerceived Organizational Suppott, • Journal of Occupational Health Psyclwlogy 14, no. 2 (2009), pp. 122- 136.

End notes 563

52 L. Blue, "Making Good Health Easy, · Time, November 12, 2009,

http://W\,~v.time.com; and M. Andrews, "America's Best Health Plans,• US News and World Report, November 5, 2007, pp. 54- 60.

53 L. Blue, "Making Good Health Easy, · Time, November 12, 2009, http://W\,~v.time.com; and M. Andrews, "America's Best Health Plans,• US News and World Report, November 5, 2007, pp. 54- 60.

54 K. M. Richardson and H. R. Roth<tein, "Effects of Occupational Stress Management Intervention rrograms: A Meta. analysis," Journal of Occupa1io11al Health Ps)'c/1olog)' 13, no. 1 (2008), pp. 69- 93.

55 Based on S. Martin, ' Money Is the Stres.wr for Americans,• Mo11itor 011 Ps)'chology, December 2008, pp. 28- 29; Helicobacter p)'lori a11d Peptic Ulcer Disease, Centers for DLsease Control and Prevention, U.S. Department of Health and Human Services; and M. Maynard, "Maybe the Toughest Job Aloft, • New Yorn Times, August 15, 2006, pp. CL C6.

Chapter 4

1 Opening vignette based o n R. Black-well, "Lee Valley Tools Founder Leo nard Lee Treated Custo me rs as Friends,• Globe a11d Mail,

July 15, 2016.

2 See, for example, C. P. Latham and C. C. Pinder, "\,Vork Motivation Theory and Research at the Dawn of the Twenty-First Century,· A111111al Review of Psycholog)' 56 (2005), pp. 485- 516; and C. C. Pinder, Work Motivatio,i j,i Organiznlional Behavior, 2nd ed. (London, UK: Psychology Press, 2008).

3 S. Crabtree, "Worldwide, 13o/o of Employees Are Engaged at \.Vork." Gallup World, October 8, 2013, http://"~vw.gallup.com/ poll/ I 65269/worldwide-employees-engaged-work.aspx.

4 °The 2014 Wasting Time at \.Vork Survey: Everything You've Always Wanted to Know about Wasting lime in the Office,"' Salary.am,, acces.sed October 10, 2014, http://W\,~v.salary.com.

5 See, for example, T. R. Mitchell, "Matching Motivational Strategies w ith O rgan izational Contexts," in Research in Orga,iizational Behavior, vol. 19, ed. L. L. Cummings and B. M. Staw (Greenwich, CT: JAi Press, 1997), pp. 60- 62.

6 D. Gregor, The H11ma11 Side of E111erprise (New York: McGraw· Hill, 1960). For an updated analysis of Theory X and Theory Y constructs, see R. J. Summers and S. F. Cronshaw, "A Study of McGregor's Theory X, Theory Y and the Influence of Theory X, Theory Y Assu mptio ns on Causal Attributio ns for Insta nces of \+\forker Poor Performa nce., " in Organizntional Behavior. ed. S. L McShane, ASAC Conference Proceedings, vol. 9, part 5, Halifax, 1988, pp. 115- 123.

7 K. \.V. Thomas, /11tri11Sic Motivation at Work (San Francisco: Berrett· Koehler, 2000); and KW. Thomas, "Intrinsic Motivation and How It \<\forks,• Trai11i11g, October 2000, pp. 130- 135.

8 Based on D. Albarraci n, I. Senay, a nd K. Noguchi, "'A' ill \.Ve Succeed? The Science of Self-Motivation,· Psychological Scie11ce, April 2010; a nd "\.Viii We Succeed? T he Science of Se)f. Motivation,• Scie11ceDai/y, June I, 2010, http://www.sciencedaily.

com/ releases/ 20!0/ 05/ !00528092021.htm.

9 Vignette based on R. Blackwell, "Lee Valley Tools Founder Leonard Lee Treated Customers a< Friends,• Globe a11d Mail, July 15, 2016.

10 A. H. Maslow, Motiva1io11 a11d Personality (New York: Harper and Row, 1954).

11 H. Skelsey, "Maslow's Hiera rchy of Needs- The Sixth Level: Psychologist (2014), pp. 982- 983.

12 C. Conley, Peak: How Great Compa11ies Get Their Mojo from Maslow

(San Francisco: Jossey-Bass, 2007).

13 H. Skelsey, "Maslow's Hiera rchy of Needs- The Sixth Level,• Psychologist (2014), pp. 982- 983.

564 Endnotes

14 S. H. Mousavi and H. Dargahi, "Ethnic Differences and Motivation Based on Maslow's Theory on Iranian Employees," Iranian Joun1al of Public Health 42, no. 5 (2013), pp. 516-521.

15 D. Lester, "Measuring Maslow's Hierarchy of Needs," Ps)'clwlogical Reports 113, no. 1 (2013), pp. 127- 129.

16 J.-K. Lee and J.-C. Choi, 'Testing the Applicability of the Herzberg's Motivation-Hygiene Theoiy to the Hotel lndustiy, • Korean Joumal of Business Admi11istra1ion (2012), pp. 2091 - 21 11 .

17 See, for insta nce, C.-S. r ark and K.-S. Ko, "A Study o n Factors of Job Satisfaction of Caregivers in Home Care Facilities Based o n Herzberg's Motivation-Hygiene Theoiy, • Church Social Work (2012), pp. 123- 158; and "Study o n the Important Factors for Non-Commissioned Officer's Job Satisfaction in R.O.K. Army Based on Herzberg's Two Factor Theoiy, • Joumal of Korean Public Police and Security Studies (2012), pp. 21 7-238.

18 H. va n Emmerick, W. L. Gardner, H. Wendt, and D. Fischer, "As_sociations of Cu ltu re and r ersonali ty with McClella nd 's Motives: A Cross-Cultura l Study of Managers in 24 Countries,• Croup a11d Orga11iza1io11 Managemelll 35, no. 3 (2010), pp. 329- 367.

19 D. C. McClelland, The Achievi11g Society (New York: Van Nostrand Reinhold, 1961 ).

20 D. C. 'A' inter, 'The Motiva tional Dimens ions o f Leadership: Power, Ach ievement, and Affiliation," in Multiple Intelligences a11d l..endership, ed. R. E. Riggio, S. E. Murphy, and F. J. r irozzolo (Mahwah, NJ: Lawrence Erlbaum, 2002), pp. 119- 138.

21 H. va n Emmerick, W. L. Gardner, H. \.Vendt, and D. Fischer, "Associations of Cu ltu re and r ersonali ty with McClella nd 's Motives: A Cross-Cultura l Study of Managers in 24 Countries.• Croup a11d Orga11iza1io11 Managemelll 35, no. 3 (2010), pp. 329- 367.

22 See, for insta nce, F. Yang, J. E. Ramsay, 0. C. Schu ltheiss, and J. S. rang, "Need for Achievement Moderates the Effect of Motive- Relevant Challenge on Salivaiy Cortisol Changes,• Motivatio11 and Emotion (201 5), pp. 321- 334; M. S. Khan, R. J. Breitnecker, and E. J. Schwa rz, "Adding Fuel to the Fi re: Need for Achievement D iversity and Relationship Conflict in Entrepreneurial Teams," Management Decisio11 53, no. 1 (2015), pp. 75-79; M. C. Koellner and 0. C. Schulthe iss, "Meta-ana lyt ic Evidence of Low Convergence between Implicit and Explicit Measures of the Needs fo r Achievemen t, Affi liation, and Power," Frontiers in Psycholog)' 5 (2014), article 826; and T. Sipp a nd K. va n Dam, "Extend ing Hiera rchical Achievement Motivation Models: The Role of Motivational Needs for Achievement Coals and Academic rerformance: Perso11ality and Individual Differe11ces 64 (2014), pp. 157- 162.

23 M. C. Koellner and 0 . C. Schultheiss, "Meta-a nalytic Evidence of Low Convergence between Implicit and Explicit Measures of the Needs fo r Achievemen t, Affi liation, and Power," Frontiers in Psycliolog)' 5 (2014), article 826.

24 J. Hofer, H. Busch, a nd C. Sch neider, 'The Effect of Motive-Tra it Interaction on Satisfactio n of the Implicit Need for Affi li atio n among German and Cameroonian Adults: Joumal of Personality 83, no. 2 (2015), pp. 167- 178.

25 Vignette based on V. Lu, "Leonard Lee, Fou nder of Lee Va lley Tools, Was the Ultimate Craftsman: thestar.com, July 16, 201 6, https://www.thesta r.com/ busi ness/ 2016/ 07 / 16/ leonard-lee- founder-of-lee-valley-tools-was-the-ultimate-craftsman.html.

26 R. L r urvis, T. J. Zagenczyck, and G. E. McCray, "\.Vhat's in It for Me? Using ExpectancyTheoiy and Climate to Explain Stakeholder Participation, Its Direction and Intensity," Jmeniational Journal of Project Ma11ageme11133, no. 1 (2015), pp. 3- 14.

27 M. Renko, K. C. Koeck, and A. Bu llough, "Expecta ncy Theoiy and Nascent Entrepreneurship," Small Busitiess Economics 39, no. 3 (2012), pp. 667 - 684; J. J. Do novan, "Work Motivation: in Ha11dbook of Industrial, Work & Orga11 iza1ional Psychology, vol. 2, ed. N. Anderso n, D.S. O nes, H. K. S inangil, and

C. Viswe,,varan (Thousand Oaks, CA: Sage, 2001 ), pp. 56-59; and

C. Yu and J. Guo, "Research on Employee Motivation Mechanism in Modem Enterprises Based on Victor H. Vroom's Expectancy Theoiy, • in Proceedings of the 9th lnternatio11al Co11ference 011 lm10vation and Management, ed. C. Duyste.rs, A. DeHoyos, and K. Kaminishi, (2012), pp. 988- 991.

28 Based o n J. Nocera, "The Anguish of Being an Analyst,· New York Times, March 4, 2006, pp. Bl , 812.

29 See, for example, H. G. Heneman Ill and D. r . Schwab, "Evaluation of Resea rch o n Expecta ncy Theoiy rred iction o f Employee r erformance: Psychological Bulleti11, July 1972, pp. 1- 9; T. R. Mitchell, "Expectancy Models of Job Satisfaction, Occupational rreference a nd Effort: A T heo retica l, Methodological and Empirical Appraisal,• Psychological Bulletill, November 1974, pp. 1053- 1077; and L Reinharth and M.A. \.Vahba, "Expectancy Theoiy as a r redictor of Work Motivation, Effort Expenditure, and Job rerformance: Academy of Management Joumal, September 1975, pp. 502-537.

30 See, for example, L. W. rorter and E. E. Lawler Il l, Ma11agerial Auiwdes and Perfonna11ce (Ho mewood, IL: Richard D. Irwi n, 1968); D. F. r arker and L. Dyer, ' Expecta ncyTheoiy as a Within- r erson Behavioral Choice Model: An Empirical Test of Some Conceptual and Methodologica l Refinements: Organizational Behavior a11d Hunia11 Performa11ce, October 1976, pp. 97- 117; H. J. Arnold, "A Test of the Multiplicative Hypothesis of Expectancy- Valence Theories of \.Vork Motivation,• Academy of Management Journal, April 1981 , pp. 128 - 141; and W. Va n Eerde a nd H. Th ieriy, "Vroom's Expectancy Models and Work-Related Criter ia: A Meta-analysis: Jou ma I of Applied Ps)'c/1ology, October 1996, pp. 575-586.

31 r . C. Ea rley, Face, Harmony. a11d Social Structure: A11 Anal)'sis of Organizatio,ial Behavior across Cultures (New York: Oxford University rres_s, 1997); R. M. Steers and C. Sa nchez-Runde, "Culture, Motivation, and Work Behavior,• in Ha11dbook of Cross· Cultural Ma11agement, ed. M. Cannon and K. Newman (London: Blackwell, 2001), pp. 190- 215; and H. C. Triandis, "Motivation and Achievement in Collectiv ist and Individualistic Cultures," in Advances in Motivation and Adiieveme,it, vol. 9, ed. M. Maehr and r . r intrich (G reenwich, CT: JAi r ress, 1995), pp. 1- 30.

32 C. Gabelica, r. Van den Bossche, M. Segers, and W. Gijselaersa, "Feedback, a rowerful Lever in Teams: A Review,· Educational Resean;h Review, June 2012, pp. 123- 144.

33 S. Huang, Y. Zhang, and S. M. Broniarczyk, "So Near and Yet So Far: The Mental Representation of Coal r rogress, • Joun,al of Perso11ali1y a11d Social Psycholog)' 103, no. 2 (2012), pp. 225-241.

34 B. D. Cawley, L. M. Keepi ng, and r. E. Levy, · r articipation in the r erformance Appraisal r rocess and Employee Reactions: A Meta-analytic Review of Field Investigations,• Joumal of Applied Psychology, August 1998, pp. 615- 633; and r. E. Levy a nd J. R. Williams, "The Social Context of rerformance Appraisal: A Review and Framework for the Future,· Joumal of Ma11ageme11t 30, no. 6 (2004), pp. 881- 905.

35 List directly quoted from R. Kreitner and A. Kinicki, Orga11izational Behavior, 6th ed. (New York: McGraw-Hill/ Irwin, 2004), p. 335 ( emphasis added).

36 E. A. Locke, "Toward a Theoiy of Task Motivation and Incentives,· Organizational Behavior and Human Performance, May 1968, pp. 157- 189.

37 r . C. Earley, r . \.Vojnaroski, a nd 'A'. r rest, 'Task r lanning a nd Ene rgy Expended: Explorat ion o f How Goa ls Infl ue nce r erforma nce: Journal of Applied Psychology, Februaiy 1987, pp. 107- 114.

38 "KEYCroup Survey Fi nds Nearly Half o f All Employees Have No Set rerformance Coals; IPMA·HR Bul/e1i11, March 10, 2006, p. l; S. Hamm, "SAr Dangles a Big, Fat Carrot,• Busi11essWeek, May 22,

2006, pp. 67- 68; and "P&G CEO \<\fields High Expectations but No 'A'hip," USA Today, Februaiy 19, 2007, p. 38.

39 See, for exam ple, S. J. Ca rro ll a nd H. L. Tosi, Management by Objectives: Applicatiol!S and Research (New York: Macmillan, 1973); a nd R. Rodgers and J. E. Hunter, "Im pact of Management by Objectives on O rganizational Productivity." Joumal of Applied Psychology, Apri l 1991, pp. 322- 336.

40 See, for instance, F. Ceresia, "A Model of Goa l Dynam ics in Organizations: Goa l Setti ng. Goal Commitment, Training, and Ma nagement by Objectives,• Proceed ings of 2009 Conference o n System'i Science, Management Science & System Dynamics 1 (2009), pp. 37-46; and H. Levinson, "Management by Whose Objectives!" Hanx,rd Business Review, Januaiy 2003, pp. 107- 11 6.

41 See, for example, E. Lindberg and T. L. Wilson, "Management by Objectives: The Swedish Experience in Upper Secondaiy Schools," Joumal of Educational Administration 49, no. I (2011 ), pp. 62- 75; a nd A . C. Spau ld ing, L. D. Gamm, and J.M. Griffith, "Studer Unplugged: Identifying Underlying Ma nageria l Concepts, " Hospital Topics 88, no. 1 (2010), pp. 1- 9.

42 M. B. Kristiansen, "Ma nagement by Objectives and Results in the Nordic Countries: Continuity a nd Change, Differences and Similarities," Public Perfonnance and Management Review 38, no. 3 (201 5), pp. 542- 569.

43 See, for insta nce, M. Tanikawa, *Fujitsu Decides to Backtrack o n Performance-Based Pay," New York Times, March 22, 2001, p. \<\II ; a nd 'A'. F. Roth, "Is Management by Objectives Obsolete?" Global Business and OrganiZlltional Excellence 28 (May/ June 2009), pp. 36- 43.

44 E. A. Locke and G. P. Latham, A Theory of Coal Setting and Task Perfonnance (Englewood Cli ffs, NJ: Prentice Hall, 1980).

45 L. D. Ordonez, M. E. Schwei tze r, A. D. Ga lins ky, and M. Bazerman, "Goals Gone Wild: The Systematic Side Effects of Overprescribing Goal Setting." Academy of Manage111e111 Pmpectives 23, no. 1 (2009), pp. 6- 16; a nd E. A. Locke and G. P. Latham, *Has Goal Setting Gone Wild, or Have Its Attackers Abandoned Good Scholarsh ip?" Academy of Management Perspectives 23, no. 1 (2009), pp. 17-23.

46 C. P. Cerasoli, J.M. Nicklin, and M. T. Ford, "lntrin.sic Motivation and Extri nsic Incentives Jointly Pred ict Performance: A 40·Year Meta -analysis," Psychological Bulletin 140, no. 4 (2014), pp. 980- 1008.

47 K. Lanaj, C. D. Cha ng, a nd R. E. Johnson, "Regulatory Focus and Work- Related O utcomes: A Review a nd Meta-analysis, " Psychological Bulletin 138, no. 5 (2012), pp. 998- 1034.

48 K. Lanaj, C. D. Cha ng, a nd R. E. Johnson, "Regulatory Focus and Work- Related O utcomes: A Review a nd Meta-analysis, " Psychological Bulletin 138, no. 5 (2012), pp. 998- 1034.

49 D. L. Ferris, R. E. Johnson, C. C. Rosen, E. Djurdjevic, C.- H. Chang. and J. A. Tan, "When Is Success Not Satisfying? Integrating Regulatoiy Focus and Approach/Avoidance Motivation Theories to Expla in the Relation between Core Se)f. E;va luation a nd Job Satisfaction," Journal of Applied Psychology 98, no. 2 (2013), pp. 342- 353.

50 M. Roskes, A. J. Elliot, and C. K. W. De Dreu, *\<\lhy Is Avoidance Motivation Problematic, a nd \<\/hat Can Be Done about It? " Current Directions in Psychological Science 23, no. 2 (2014) , pp. 133- 138.

51 J. R. Themanson and P. J. Rosen, "Examining the Relationship., between Self-Efficacy, Task-Relevant Attentional Contro l, a nd Task Performance: Evidence from Event-Related Brain Potentials," British Joumal of Psyclwlogy 106, no. 2 (2015) , pp. 253- 271.

52 A. Band u ra , "Cultivat e Se lf-Efficacy fo r Pe rsona l and Orga nizationa l Effectiveness,• in Handbook of Principles of Organizational Behavior, ed. E. Locke (Malden, MA: Blackwell, 2004), pp. 120- 136; and M. Ventura, M. Sa lanova, and S.

Endnotes 565

Llorens, "Professiona l Self-Efficacy as a Predictor of Burnout and Engagement The Role of Challenge and Hindrance Demands,• Joumal of Psychology 149, no. 3 (201 5), pp. 277-302.

53 M. Sa lanova, S. Llorens, a nd \<\/. B. Schaufeli, "'Yes I Can,

I Feel Good, and I Just Do It!' On Ga in Cycles and Spirals of Efficacy Beliefs, Affect, and Engagement," Applied Psychology: An Jntematio11al Review 60, no. 2 (2011 ), pp. 255-285.

54 J. R. Themanson and P. J. Rosen, ' Examining the Relationships between Self-Efficacy, Task-Relevant Attentio nal Control, and Task Performance: Evidence from Event-Related Brain Potentials,• British Joumal of Psychology 106, no. 2 (201 5), pp. 253- 271.

55 A. P. Tolli a nd A. M. Schmidt, "The Role of Feedback, Causal

Attributions, and Self-Efficacy in Coal Revision," Joumal of Applied Psychology 93, no. 3 (2008), pp. 692 - 701.

56 P. Tierney and S. M. Farmer, "Creative Self-Efficacy Development and Creative Performance over Time," Journal of Applied Psycholog)' 96, no. 2 (2011), pp. 277-293.

57 A. Bandura, Self-Efficacy: The Exercise of Control (New York: Freema n, 1997).

58 T. A. Judge, C. L. Jackson, J. C. Shaw, B. Scott, and B. L. Rich, *Self-Efficacy and Work-Related Performa nce: The Integral Role of Individual Differences," Joumal of Applied Psychology 92, no. I (2007) , pp. 107- 127.

59 T. A. Judge, C. L. Jackson, J. C. Shaw, B. Scott, and B. L. Rich, "Self-Efficacy and Work-Related Performa nce: The Integral Role of Individual Difference.,," Joumal of Applied Psychology 92, no. I (2007) , pp. 107- 127.

60 A. M. Paul, "How to Use the ' Pygmalion' Effect." Time, April I. 2013, h ttp:/ / ideas.time.co m/ 2013/ 04/ 01/ how-to-use-the- pygmalion-effect/ .

61 A. Friedrich, B. Fl unger, B. Nagengast, K. Jonkmann, a nd U. Trau twein, *Pygma lion Effects in the C lass roo m: Teache r Expectancy Effects on Students' Math Achievement," Omtemporary Educational Psychology 41 (201 5), pp. 1- 12.

62 L. Karakowsky, N. DeGa ma, and K. McBey, "Facilitating the Pygmalion Effect: The Overlooked Role of Subordinate Perceptions of the Leader,• Journal of Occupational and Orga11izational l'syclwlogJ' 85, no. 4 (2012), pp. 579-599; and P. 'A'hiteley, T. Sy, and S. K. Johnson, "Leaders' Conceptio ns of Followers: Implications for Naturally Occurring Pygmalion Effects." Leadership Quarterly 23, no. 5 (2012), pp. 822- 834.

63 A. Gegenfurtner, C. Quesada-Pallares, and M. Knogler, "Digita l Si mulatio n-Based Training: A Meta-analysis," British Joumal of Educational Teclmology45, no. 6 (2014), pp. 1097- 1114.

64 E. C. Dierdorff, E. A. Surface, a nd K. G. Brown, "Frame-of- ReferenceTraining Effectiveness: EffecLs of Coal Orientation and Self-Efficacy on Affective, Cognitive, Skill- Based, and Tra n.sfer O utco mes,• Journal of Applied Psychology 95, no. 6 (2010), pp. 1181- 1191; and R. Gros.sman, and E. Salas, "The Transfer of Training: What Really Matters," ll1tematio11al Journal of Training and Developme11t JS, no. 2 (2011), pp. 103 - 120.

65 K. M. Edd ington, C. Majestic, and P. J. Si lvia, "Con trasting Regulatoiy Focus and Reinforcement Sen., it ivity: A Daily Diary Study of Goal Pursuit a nd Emotion," Perso11ality a11d Individual Differences, August 2012, pp. 335-340.

66 X. Zhu and M. lian, "On the Incentive System for Chinese Local Governments' Wo rk of Environmental Protection from th e Perspective of Skin ner's Reinforcement Theoiy," Proceedi11gs of the 2013 Jntematio11al Co11ference on Public Ad111inistratio11 (2013), pp. 271 - 277.

67 M. J. Goddard, ' Critical Psych iatry, Critical Psychology, and the Behaviorism of B. F. Skin ner," Review of General Psycl,ology 18, no. 3 (2014), pp. 208- 215.

566 Endnotes

68 F. Luthans and R. Kreitner, Orga11iznrio11al Behavior Modificario11 and Be)'o11d, 2nd ed. (Glenview, IL: Scott Foresma n, 1985); and A. D. Stajkovic a nd F. Lutha ns, "A Meta.ana lysis of the EffecL< of Organizatio nal Behavior Modification o n Task Performance, 1975- 95; Academy of Ma11ageme111 Journal, October 1997, pp. 11 22- 1149.

69 Vignette based o n R. Blackwell, "Lee Valley Tools Founder Leonard Lee Treated Customers as Friends,• Globe and Mail, July 15, 2016; and T. O'Reilly, "Brand Envy: #Canada! 50," May JI, 2017, CBC Radio, http://\\~vw.cbc.ca/ radio/ undertheintl uencef brand·envy· canada 150· 1.4108158.

70 P. S. Goodma n, "An Exam ination of Refere nts Used in the Eva luatio n of Pay, ,. Organiz.ational Behavior and Huma,i Performance, October 1974, pp. 170- 195; S. Ronen, "Equity Perception in Multiple Comparisons: A Field Study," Huma11 Relatio11s, April 1986, pp. 333- 346; R. W. Scholl, E. A. Cooper, a nd J. F. McKenna, "Referent Selection in Determining Equi ty Perception: Differential Effects on Behavioral a nd Attitud inal Outcomes: Personnel Psychology, Sp ring 1987, pp. 113- 127; T. P. Su mmers a nd A. S. DeNis i, "In Sea rch of Adams' Other: Reexa mination of Refere nts Used in the Evaluation of ray, •

Human Relatio11s, Ju ne 1990, pp. 497-511; S. \.Verne r and N. P. Mero, "Fair or Foul? The Effects of External, Internal, and

Employee Equity on Changes in Performance of Major League Baseball Players,· Human Relations, October 1999, pp. 1291- 1312; and R. W. Griffeth and S. Gaertner, "A Role for Equity Theory in the Turnover Proce.s.s: An Empirical Te.st, • Journal of Applied Social Psycliolog)', May 2001, pp. 1017-1037.

71 See, for example, E. \,Valster, G. \.V. Wa ister, and V.,,. G. Scott, Ef/uity: Theory and Research (Boston: Allyn and Bacon, 1978); and J. Greenberg, "Cognitive Reevaluation of Outcomes in Response to Underpayment Inequ ity,• Academy of Manageme11t Journal, March 1989, pp. 174- 184.

72 J. Bai, "Analysis of Equity Theory in the Modern Enterprise Staff Motivation,• Proceedings of the 2012 /111ernario11al Confere11ce 011 Ma11agement Innovation a11d Public Policy (2012), pp. 165- 167; C. Buzea, "Equity Theory Constructs in a Romanian Cultura l Context,• Human Resource Development Quarterly 25, no. 4 (2014), pp. 421- 439; R. W. Griffeth and S. Gaertner, "A Role for Equity Theory in the Turnover Process: An Empirical Te.<t, • Journal of Applied Social Psychology 31 , no. 5 (2001), pp. 1017- 1037; a nd L. K. Scheer, N. Kumar, and J.· B. E. M. Steenka mp, "Reactio ns to Perceived Inequity in U.S. and Dutch lntero rga nizationa l Rela tio nships, · Academy of Manageme111 46 , no. 3 (2003) ,

pp. 303- 316.

73 B. K Miller, .. Entitlement and Con.'icie.ntiousnes.'i in the Prediction of Organizational Deviance,• Perso11ality a11d Individual Differe11ces 82 (2015), pp. 114- 119; and H.J. R. Woodley and N. J. Allen, "The Dark Side of Equity Sensitivity,• Perso11ality a11d /11dividual

Differe11ces 67 (2014), pp. 103- 108.

74 J. M. Jensen, P. C. Patel, and J. L. Raver, "Is It Better to Be Average? High a nd Low Performance as Predictors of Employee Victimization,• Joumal of Applied Ps)'c/1ology 99, no. 2 (2014), pp. 296- 309.

75 C. 0. T revor, G. Reilly, a nd B. Gerha rt, "Reconsidering Pay Dispersion's Effect on the Performance of Interdependent Work: Reconci ling Sorting and Pay Inequality,• Academy of Ma11agement Joumal, June 2012, pp. 585- 610.

76 C. 0. T revor, G. Reilly, a nd B. Gerha rt, "Reconsidering Pay Dispersion's Effect on the Performance of Interdependent Work: Reconci ling Sorting and Pay Inequa lity,• Academy of Ma11agement Joumal, June 2012, pp. 585- 610.

77 See, for example, R. Cropanzano, J. H. Stein, and T. Nadisic, Social Justice a11d the Experience of Emotio11 (New York: Routledge/Taylor and Francis Group, 2011 ).

G. S. Leventhal, "Vslhat Should Be Done with Equity Theory? New Approaches to the Study of Fairness in Social Relationships, • in Social Exchange: Advances in Theory a11d Research, ed. K. Gergen, M. Greenberg, and R. \,Villis (New York: Plenum, 1980), pp. 27-55.

J. Brockner and B. M. Wiesenfeld, "An Integrative Framework for Examining Reactions to Decisions: Interactive EffecL~ of Outcomes and Procedures," Psychological Bulleti11 120 (1996), pp. 189- 208.

J. C. Shaw, E. Wild, and J. A. Colquitt, "To Justify or Excuse? A Meta-a nalytic Review of the Effects of Explanations,• Journal of Applied Psychology 88, no. 3 (2003), pp. 444-458.

R. J. Bies, "Are Procedura l and lnteractional Justice Conceptually Distinct?" in Ha11dbook of Organizntio11al Justice, ed. J. Greenberg and J. A. Colquitt ( Mahwah, NJ: Erlbaum, 2005), pp. 85- 112; and B. A. Scott, J. A. Colquitt, and E. L. Paddock, "An Actor. Focused Model of Justice Rule Adherence and Vio latio n: The Ro le of Managerial Motives and Discretion, • Journal of Applied Psychology 94, no.3 (2009), pp. 756- 769.

G. A. Va n Kleef, A. C. Homan, B. Beersma, D. V. Knippenberg, B. V. Knippenberg, and F. Darnen, ' Searing Sentiment or Cold Calculation? The Effects of Leader Emotional Displays on Team rerfonnance Depend on Follower Epistemic Motivation," Academy of Ma11agemen1 Joumal 52, no. 3 (2009), pp. 562- 580.

J.M. Robbins, M. T. Ford, and L. E. Tetrick, "Perceived Unfairness and Employee Health: A Meta.a nalytic Integratio n," Journal of Applied Psychology 97, no. 2 (2012), pp. 235- 272.

J. A. Colquitt, B. A. Scott, J. B. Rodell, D. M. Long, C. P. Zapata, D. E. Conlon, and M. J. Wesson, ' Justice at the Millennium, A Decade Later. A Meta.analytic Test of Social Exchange and Affect· Based Perspectives,· Joumal of Applied Psycholog)' 98, no. 2 (2013), pp. 199- 236.

K. Leung, K. Tong, and S. S. Ho, "Effects of lnteractional Justice on Egocentric Bias in Resource Al location Decisions," Jounial of Applied Psycholog)' 89, no. 3 (2004), pp. 405- 415; and L. Francis. Gladney, N. R. Manger, and R. B. Welker, "Does Outcome Favorability Affect Procedural Fairness as a Result of Self.Serving Attributions,• Joumal of Applied Social Psycliolog)' 40, no. I (2010), pp. 182- 194.

L. J. Barkay a nd D. P. Skarlicki, "Healing the Wou nds of O rganizationa l Injustice: Exa mining the Benefits of Expressive Writ ing,· Journal of Applied Psychology 94, no. 2 (2009), pp. 511 - 523.

Th i.< section is based on B. A. Scott, A. S. Garza, D. E. Conlon, and Y. J. Kim, "Why Do Managers Act Fairly in the First Place? A Daily Investigation of 'Hot' and 'Cold' Motives and Discretion,• Academ)' of Ma11ageme111 Jou ma I 57, no. 6 (2014 ), pp. 1571- 1591.

E. Deci and R. Ryan, eds., Ha11dbook of Self-Determi11arion Research (Rochester, NY: University of Rochester Press, 2002); R. Rya n and E. Deci, "Self. Determi nation Theory and the Facilitation of Intrinsic Motivatio n, Socia l Development, and Well. Being, • American Ps)'chologist 55, no. 1 (2000), pp. 68-78; and M. Gagne and E. L. Deci, "Self. Determination Theol)' and \.Vork Motivation,• Journal of Organizational Behavior 26, no. 4 (2005), pp. 331- 362.

E. L. Deci, R. Koestner, and R. M. Rya n, "A Meta.analytic Review of Experiments Examining the Effects of Extrinsic Rewards on Intr insic Motivation." Ps)'c/1ological Bulleti11 125, no. 6 ( 1999), pp. 627- 668; N. Houl fort, R. Koe.<tner, M. Joussemet, A. Nantel· Vivier, and N. Lekes, "The Impact of Performance. Contingent Rewards on rerceived Auto nomy and Competen ce," Motivatio,i & Emotion 26, no. 4 (2002), pp. 279- 295; G. J. Greguras a nd J. M. Diefendo rff, "Differen t Fi ts Satisfy Differen t Needs: Linking Person.Envi ronment Fit to Employee Comm itment and Performance Usi ng Self. Determination Theory,• Journal of Applied Psychology 94, no. 2 (2009), pp. 465- 477; and M. P. Moreno-Jimenez and M. C. H. Villodres, "Prediction of Burnout in Volunteers,• Journal of Applied Social Psychology 40, no. 7 (2010), pp. 1798- 1818. This work studies the personal experience of vol·

unteering and several antecedent and consequent variables. We studied the effect of the amount of time dedicated to the organiza- tion, motivation, social support, integration in the o rganization, self. efficacy, and characteristics of the work on a consequent variable of the volunteering experience; that is, burnout, with its th ree components of efficacy, cynicism, and exhaustion. The statistical analysis shows that the time dedicated to volunteering and the extrins ic motivations (that is, social and career) predicts higher levels of burnout, whereas intrinsic motivations (that is, values and understanding), life satisfaction, and integration in the o rganization are negatively related to burnout.

90 C. r . Cerasoli, J.M. Nicklin, and M. T. Ford, "Intri nsic Motivation and Extrinsic Incentives Jo intly Pred ict Performance: A 40·Year Meta -analysis,• Psychological Bulletin 140, no. 4 (2014), pp. 980- 1008.

91 K. M. Sheldon, A. J. Elliot, and R. M. Ryan, "Self-Concordance and Subjective Well-Being in Four Cultures,• Journal of Cross-Cultural Psychology 35, no. 2 (2004), pp. 209- 223.

92 K. M. Sheldon, A. J. Elliot, and R. M. Ryan, "Self-Concordance and Subjective Well-being in Four Cultures,· Journal of Cross-Cultural Psychology 35, no. 2 (2004), pp. 209- 223.

93 L. M. Graves, M. N. Ruderman, r. J. Ohlott, and T. J. Webber, "D riven to Wo rk and Enjoymen t of \<\fork: Effects o n Managers' Outcomes,· Journal of Management 38, no. 5 (2012), pp. I 655- 1680.

94 K. M. Sheldon, A. J. Elliot, and R. M. Ryan, "Self-Concordance and Subjective Well-Being in Four Cultures,• Journal of Cross-Cultural Psychology 35, no. 2 (2004), pp. 209- 223.

95 J. r. Meyer, T. E. Becker, a nd C. Vandenberghe, "Employee Comm itme nt and Motivation: A Conceptua l Analysis and Integrative Model,· Journal of Applied Psyclwlogy 89, no. G (2004), pp. 991- 1007.

96 K. v,,1. Thomas, E. Jansen, and VI/. G. Tymon Jr., "Navigating in the Real m of Theory: An Empowering View of Construct Deve lopment," in Research in Organ izational Change and Developme111, vol. JO, ed. \<\/. A. rasmore and R. \<\/. Woodman (Greenwich, CT: JAJ r ress, 1997), pp. 1- 30.

97 This section based on C. Michaelson, "Meaningful Motivation for Work Motivation Theory,· Academy of Management Review 30, no. 2 (2005), pp. 235- 238; and R. M. Steers, R. T. Mowday, and D. L. Shapi ro, "Response to Mea ni ngful Motivation for Work Motivation Theory," Academy of Management Review 30, no. 2 (2005), p. 238.

98 C. Michaelson, "Meaningfu l Motivatio n for Work Motivatio n Theory; Academy of Management Review 30, no. 2 (2005), p. 237.

99 H.-T. Chang, H.-M. Hsu, J .• \<\I. Liou, and C.-T. 'faai, · rsychological

ContracL< and Innovative Behavior: A Moderated rath Analysis of Work Engagement and Job Resources: Journal of Applied Social Psyclwlogy 43, no. JO (2013), pp. 2021- 2135 .

100 See topics of employee engagement from Gallup o n http://www. gallup.com/topic/employee_engagemenLaspx.

101 M. S. Ch ristian, A. S . Ga rza, and J. E. Sla ughte r, ·work Engagement: A Quantitative Review and Test of Its Relations with Task and Contextual rerformance, • Personnel Psychology 64, no. I (2011 ), pp. 89- 136.

102 W. B. Scha ufeli, A. B. Bakker, a nd W. va n Rh ene n, "How Cha nges in Job Demands and Resources Predict Burnout, \<\fork Engagement, and Sickness Absenteeism,· Journal of Organizational Behavior 30, no. 7 (2009), pp. 893- 917; E. R. Crawford, J. A. LePine, and B. L. Rich, "linking Job Demands and Resources to Employee Engagement and Burnout A Theoretical E>.~ension and Meta-ana lytic Test: Journal of Applied Psychology 95, no. 5 (2010), pp. 834- 848; and D. Xanthopoulou, A. B. Bakker, E. Demerouti, and W. B. Schaufeli, "Reciproca l Relationships between Job

End notes 567

Resources, Personal Resources, and Work Engagement,• Journal of Vocational Behavior 74, no. 3 (2009), pp. 235- 244.

103 B. L. Rich, J. A. LePine, and E. R. Crawford, "Job Engagement: Antecedent.< and Effects on Job r e rforma nce, • Academy of Management Journal 53, no. 3 (2010), pp. GI 7- 635.

104 M. Tims, A. B. Bakker, and D. Xanthopoulou, "Do Tran.<formational Leaders Enhance Their Followers' Daily Work Engagement?" Leadership Quarterly 22, no. I (2011), pp. 121- 131; and F. 0 . Wa lu mbwa, P. \<\fang, H. \<\fang, J. Schaubroeck, and B. J. Avolio, "Psychological Processes Linking Authentic Leadership to Follower Behaviors,• Leadership Quarterly 21, no. 5 (2010), pp. 901- 914.

105 D. A. Newman and D. A. Harrison, "Been There, Bottled That: Are State and Behavioral Work Engagement New a nd Useful Construct '\Aiines'?" Industrial and Organizational Ps)1cl1ology 1, no. I (2008), pp. 31- 35; and A. J. \<\lefald and R. G. Downey, "Job Engagement in Orga nizations: Fad, Fashio n, or Folderol; Journal of Organizntional Behavior 30, no. I (2009), pp. 141- 145.

106 See, for example, B. L. Rich, J. A. LePi ne, a nd E. R. Crawford, "Job Engagement: Antecedents and Effects on Job rerformance, • Academy of Management Joumal 53, no. 3 (2010), pp. GI 7-635.

107 J. M. George, "The Wider Context, Costs, and Benefits of Work Engagement: European Journal of Work and Organizational Psychology 20, no. I (2011 ), pp. 53-59; and J. R. B. Halbesleben, J. Ha rvey, a nd M. C. Boli no, "Too Engaged? A Conservation of Resources View of the Relationship between Work Engagement and Work Interference with Family; Journal of Applied Psycl1ologJ' 94, no. G (2009), pp. 1452- 1465.

108 N. J. Adler, llllernational Dimensions of Organizational Behavior, 4th ed. (Cincinnati, O H: South-Western Publishing, 2002), p. 174.

109 G. Hofstede, "Motivation, Leadershi p, and O rganization: Do American Theories Apply Abroad?" Organizational D)'tiamics, Summer 1980, p. 55.

110 G. Hofstede, "Motivation, Leadershi p, and O rganization: Do American Theories Apply Abroad?" Organizational D)itiamics, Summer 1980, p. 55.

ill D. F. Crown, "The Use of Group a nd Groupcentric Individual Goa ls fo r Cu lturally Heterogeneous a nd Homogeneous Task Groups: An Assessment of European Work Tea ms,· Small Group Research 38, no. 4 (2007), pp. 489-508; J. Ku rman, "Se lf. Regulation Strategies in Achievement Setting.: Culture and Gender Differences,• Journal of Cross-Cultural Psyclwlogy 32, no. 4 (2001 ), pp. 491- 503; and M. Erez and P. C. Earley, "Comparative Analysis of Goa l-Setting Strategies across Cultures,· Jounial of Applied Psychology 72, no. 4 (1987), pp. 658- 665.

112 C. Sue-Chan and M. Ong, "Goal Assignment and Perfo rmance: Assessing the Med iating Ro les of Goal Co mm itment and Se lf-Efficacy and the Moderating Role of Power Distance,• Organizational Behavior and Huma,1 Decision Processes 89. no. 2 (2002), pp. 1140- 1161.

113 R. Fischer and P. B. Smith, "Rewa rd Alloca tion a nd Culture: A Meta-analysis,• Journal of Cross-Cultural Psycl1ology 34, no. 3 (2003), pp. 251 - 268.

114 F. F. T. Chiang and T. Birtch, "The Transferability of Management rractices: Examining Cross. Natio nal Differe nces in Rewa rd r references: Human Relations GO, no. 9 (2007), pp. 1293- 1330; A. E. Li nd, T. R. Tyler, and Y. J. Huo, "Procedura l Context a nd Culture: Variation in the Antecedents of Procedura l Justice Judgments: Journal of Personality and Social Psychology 73, no. 4 (1997), pp. 767-780; and M. J. Gelfand, M. Erez, and Z. Aycan, "Cross. Cu ltural Organ izational Behavior," Anmwl Review of Psychology 58 (2007), pp. 479-514.

115 J. K. Giacobbe-Mille r, D. J. Miller, and V. I. Victo rov, "A Compa rison of Russian and U.S. r ay Allocation Decisions, Distributive Justice Judgments, and Productivity under Different

568 Endnotes

Payment Conditio ns," Personnel Psychology 51, no. 1 (1998), pp. 137- 163.

116 M. C. Bolino and V\I. H. Turnley, 'Old Faces, New Places: Equity T heory in Cross-Cultural Contexts,• Journal of Organizational Behavior 29, no. 1 (2008), pp. 29- 50.

117 F. F. T. Chiang and T. Birtch, "The Transferability of Management Practices: Exam in ing Cross. National Differences in Reward Preferences," Human Relations 60, no. 9 (2007), pp. 1293- 1330; and M. J. Gelfand, M. Erez, and Z. Aycan, "Cross-Cu ltura l Organizational Behavior,· Annual Review of Psychology 58 (2007), pp. 479- 514.

118 M. C. Bolino and V\I. H. Turnley, 'Old Faces, New Places: Equity Theory in Cross-Cultural Contexts,• Journal of Organizational Behavior 29, no. 1 (2008), pp. 29- 50.

119 R. Shao, D. E. Rupp, D. P. Skarlicki, and K. S. Jones, 'Employee Justice across Cultu res: A Meta. ana lytic Review," Journal of Management 39, no. 1 (2013), pp. 263- 301.

120 Based o n S. E. DeVoe and S. S. Iyenga r, "Managers' Theorie.< of Subordinates: A Cross-Cultura l Exami nation of Manager Perceptions of Motivation and Appra isa l of Performance," Orgmiizatio,ial Behavior and Human Decision Processes, Ja nuary 2004, pp. 47- 61.

121 I. Ha rpaz, ' The Importance of Work Coa ls: An Internatio nal Perspective." Journal of lntemational Business Studies. First Quarter 1990, pp. 75- 93.

122 C. E. Popp, H.J. Davis, and T. T. Herbert, 'An International Study of Intrinsic Motivation Composition," Manageme,1t h1ten1ational Review, January 1986, pp. 28- 35.

123 R. Fischer and P. B. Smith, 'Reward Allocation and Culture: A Meta-a nalysis," Joumal of Cross-Cultural Psychology 34, no. 3 (2003), pp. 251- 268.

124 F. T. Ch iang and T. Birtch, "The Transferability of Management Practices: Exam in ing Cross. National Differences in Reward Preferences," Human Relations 60, no. 9 (2007), pp. 1293- 1330; A. E. Lind, T. R. Tyler, and Y. J. Huo, "Procedural Context and Cu lture: Variation in the Antecedents of Proced ural Justice Judgments,• Joumal of Personality and Social Psychology 73, no. 4 (1997), pp. 767- 780; and M. J. Celfu nd, M. Erez, and Z. Aycan, "'Cros..~·Cultura l O rga nizational Behavior,"' Annual Review of Psycltolog)' 58 (2007), pp. 479- 514.

125 Based o n E. A. Locke and C. P. Latha m, "Building a Practically Useful Theory of Coal Setti ng and Task Motivation,• American Psychologist 57 (2002), pp. 705- 771; A. Tugend, 'Expert's Advice to the Coa l-Oriented: Don't Overdo It,• New York Times, October 6, 2012, p. BS; and C. Richards, 'Letting Co of Long-Term Coals,· New York Times, August 4, 2012.

126 A. Ellin, "Failure Is Not an Option," New York Times, April 15, 2012, pp. 13- 14; A. Massoia, "The New Normal: The Problem of Grade Inflation in America n Schools,• Huffington Post, January 12, 2015, http://www.huffi ngtonpost.com/angelina- massoia/the-new-no rmal-the-p roble_b_6146236.html 15; and S. Slavov, ' How to Fix College Grade Inflation,• US News, December 26, 2013, http://www.usnews.com/opi nion/blogs/ economic-intel I igence/ 2013/ 12/ 2 6/why-col lege-grade-i nflation- is-a-real-problem-a nd-how-to-fix-it.

127 Based o n J. McFarland, 'Major CEO Pay Increases in the Cards Again,· Globe and Mail, Ju ne I, 2014, http://www.theglobean- d mai I .com/ report ·On·busi ness/ careers/ management/ executive. compensation/pay· iS· On· the· rise. for.ca nadas· tOp·executives/ artidel 8940701/; 'CEO vs Average Pay in Canada: All in a Day's Work?" Canadian Centre for Policy Alternatives, January 2, 2014, https://www.policyalternatives.ca/ceo; J. Bizjak, M. Lemmon, and T. Nguyen, 'Are All CEOs Above Average? An Empirical Analysis of Compensation Peer Croups and Pay Design,• Joumal of Financial Economics 100, no. 3 (2011 ). pp. 538- 555; R. Foroohar, 'Stuffing Their Pockets: For CEOs, A Lucrative Recession" Newsweek,

September 13, 2010; A. Kleinman, 'Mark Zuckerberg $1 Salary Puts Him in Elite Croup of$! CEOs," Huffington Post, April 29, 2013; a nd C. Morgen.,on, "If Shareholders Say 'Enough Already; the Board May Listen,· New York Times, April 6, 2013.

128 Based o n ' Q uebecor Plays Ha rdba ll with Defiant Union: Videotron 'Ready to Listen': Aims to Sell Cab le Insta llatio n Operations,· Financial Post (National Post), March 5, 2002, p. FP6; and S. Silcoff, 'Quebecor and Union in Showdown over Costs,• Financial Post (National Post), February 28, 2002, p. FP3.

129 Based on S. P. Robbins and D. A. DeCenzo, F,mdamentals of Management, 4th ed. (Upper Saddle River, NJ: Prentice Hall, 2004), p. 85.

Chapter 5

1 "'Secrets of Ca nada's Best Managed Compa nies," Canadian Business, May 9, 2017, http://W\,~v.canadianbusiness.com/best- managed-companies/#winners; C. Mcintyre, ' How C Adventure.< Made Socia l Good Part of IL< Management Strategy,• Canadian Business, May 9, 2017, http://www.maclea ns.ca/economy/ b usiness/ how -g-ad ventures-mad e -soci a I -good · pa rt -of· i ts - ma nagement-strategy/.

2 ADP, 'Many Canadian Workers Face a Growth Cap: ADP Canada Poll," Ma rch 15, 2017, https://www.adp.ca/en-ca/press-room/ media-releases/ 201 7 / many-canadian-workers-face-a-growth-gap. aspx.

3 C. Weller, ' 10 Compa nie.< That Pay Employees Extra to Take Vacations," Inc., October 3, 2016, https://"~vw.inc.com/business- insider/ JO.co mpanies·that· pay ·em pl oyees·extra· for ·vacations. htm l.

4 E. Wh ite, 'Opportunity Knocks, and It Pays a Lot Better,· Wall Street Journal, November 13, 2006, p. B3.

5 D. A. Mcintyre a nd S. Weigley, "8 Companies That Most Owe Workers a Raise,• USA Today, May 13, 2013, http://\V\\~v.usatoday. com/story/money /business/2013/05/ 12/8-compa nie.<-that-most- owe-workers-a-raise/2144013/.

6 M. Sabramony, N. Krause, J. Norton, a nd C. N. Burns, ' The Re lationship between Hu man Resou rce Investme nts and O rgan iza tiona l Performa nce: A Fi rm. Leve l Exa mi nation of Equ ilibriu m Theory,• Joumal of Applied Psycltolog)' 93, no. 4 (2008), pp. 778- 788.

7 H. Shaw, "Wal mart Canada Stung as Retail Competition Heats Up," Financial Post, November 14, 2013.

8 J. Sturgeon, 'Meet the Big-Box Retai ler That's Muscling in on Canadian Superma rkets," Global News, January 28, 2016, http:// glob a I news.ca/news/ 2 483 631 / meet-the-b ig-box-retai I er -thats- eating·canadian.supennarkets,.lunch/.

9 J. Bowman, "Why Wal-Mart Will Never Pay Employees A< Much As Costco," Motley Fool, November 6, 2016, https://"~vw.fool.com/ investi ng/2016/ l l /06/ why-wal-mart-wil (. never-pay-employees-as- much. as-c.aspx.

10 Ba.sed on J. R. Schuster and P. K. Zingheim, "fhe New Variable Pay: Key De.sign Issues," Compensation & Benefits Review, March- April 1993, p. 28; K. S. Abosch, "Variable Pay: Do We Have the Basics in Place?" Compe11sation & Benefits Review, July- August 1998, pp. 12- 22; and K. M. Kuh n and M. D. Yockey, "Variable Pay as a Risky Choice: Detennina nts of the Relative Attractiveness of Incentive Plans," Organizational Behavior and Huma,1 Decision /'ro;;esses, March 2003, pp. 323- 341.

11 'Canada's General Motors Workers to Get Up to 16 Per Cent of Salary in Bonuses," Canadian Press, February 14, 2011.

12 'Canada's General Motors Workers to Get Up to 16 Per Cent of Salary in Bonuses," Canadian Press, February 14, 2011 .

13 See, for example, M. Damiani and A. Ricci, 'Managers' Education and the Choice of Different Variable Pay Schemes: Evidence from

Ita lian Firms," European Managemellt Joun1al 32, no. G (2014), pp. 891- 902; a nd J. S. Heywood and U. )irjahn, "Va riable Pay, Indust rial Relations and Fore ign Ownersh ip: Evidence from Germany,· British Journal of Industrial Relations 52, no. 3 (2014 ) ,

pp. 521- 552.

14 J. Cloutier, D. Morin, and S. Renaud, "How Does Variable Pay Relate to Pay Satisfaction among Canadian Workers?" hltemational Joumal of Manpower 34, no. 5 (2013), pp. 465- 485.

15 H. Ki m, K. L. Sutto n, and Y. Gong, "Group-Based Pay-for- Performance Plans and Firm Perform ance: The Moderating Ro le of Empowerment Practices," Asia Pacific Journal of Management, March 2013, pp. 31- 52.

16 E. Belogolovsky and r. A. Bamberger, "Signaling in Secrec Pay for Performance and the Incentive and Sorting Effects of Pay Secrecy,• Academy of Managemellt Joumal 57, no. 6 (2014), pp. 1706- 1733.

17 E. Belogolovsky and r. A. Bamberger, "Signaling in Secrec Pay for Performance and the Incentive and Sorting Effects of Pay Secrecy,• Academy of Managemellt Joumal 57, no. 6 (2014), pp. 1706- 1733.

18 B. Wysocki, Jr., "Chilling Reality AwaiL< Even the Employed,· Wall Street Joun,al, November 5, 2001, p. A 1.

19 K. A. Bender, C. r. Green, and J. S. Heywood, "Piece Rates and Workp lace Injury: Doe.< Survey Evidence Support Adam Smith?" Joumal of Population Economics 25, no. 2 (2012), pp. 569- 590.

20 J. S. Heywood, X. Wei, a nd G. Ye, "Piece Rates for Professors," Economics Letters 113, no. 3 (2011 ), pp. 285- 287.

21 A. Ba ker a nd V. Mertins, " Risk-Sorting a nd Preference for

Team Piece Rate.<," Journal of Economic Ps)'chology 34 (2013), pp. 285- 300.

22 A. Clemens, "Pace of Work and Piece Rates; Economics Letters 115, no. 3 (2012), pp. 477- 479.

23 K. A. Bender, C. r. Green, and J. S. Heywood, "Piece Rates and Workp lace Injury: Doe.< Survey Evidence Support Adam Smith?" Joumal of Population Economics 25, no. 2 (2012), pp. 569- 590.

24 S. L. Ryne.<, B. Gerha rt , and L. Parks, " Pe rsonnel Psychology: Performance Evaluation and Pay for Performance," Ammal Review of Psychology 56, no. I (2005), pp. 571- 600.

25 S. Halzack, "Co m panies Look to Bonuses Instead of Sa lary Increases in an Uncertain Economy," Wasl,i,1gton Post, November G, 2012, h ttp://www.wash ingtonpost.com/ business/economy/ compa nies.look· tO-bonuses-instead-of-sa lary-increases-in-an· uncertai n-economy/ 2012/ l i/06/52a7ecl 2-2751 -1 l e2-9972- 71 bf64ea091 c_story.h tml .

26 C. M. Ba rnes, J. Reb, and D. Ang, "More Tha n Just the Mean: Moving to a Dynamic View' of Perfonnance-Ba,;ed Compensation," Joumal of Applied Ps)'chology97, no. 3 (2012), pp. 711- 718.

27 E. J. Castillo, "Gende r, Race, a nd the New (Me rit- Based) Employment Relationship," Industrial Relatio1tS Si, no. S J (2012),

pp. 528- 562.

28 "Bonus Pay in Canada," Manpower Argus, Septem ber 1996, p. 5; E. 'A'h ite, "Employers Increasingly Favor BontLses to Raises,• Wall Street Journal, August 28, 2006, p. 83; and J. S. Lublin, ' Boards Tie CEO Pay More Tightly to Perfo rmance,• \.Vall Street Joumal, February 21, 2006, pp.A l, A l 4.

29 Based on R. Curran, "Did Bonuses Help to Fuel Meltdown?" Post. IE online, Septem ber 21, 2008; and V. Bajaj, A. R. Sorkin, and M. J. de la Merced, "As Goldm an and Morgan Shift, a Wall St. Era Ends, • New York Times, Septem ber 21, 2008, http:// dealbooknyti mes.com/ 2008/ 09/ 21/goldman-morgan-to-become- bank-ho lding-companies/.

30 S. S. \.Vi lterm uth and F. Gi no, "'I'll Have One of Each': How Separati ng Rewards into (Meaning less) Categories lncrea<e.< Motivation,• Journal of Personality and Social Psrchology, January 2013, pp. 1- 13.

End notes 569

31 "Mark Zuckerberg Reaped $2.3 Billion on Facebook Stock Options, • Huffington Post, April 26, 2013, http://www.huffingtonpost.com.

32 D. D'Art and T. Turner, "Profit Sharing, Firm Perform ance, and Union Influence in Selected European Countries," Person,iel Review 33, no. 3 (2004), pp. 335- 350; and D. Kruse, R. Freeman, and J. Blasi, Shared Capitalism at Work: Employee Owners/tip, Profit and Cain Sharing, and Brood-Based Stock Options (Chicago: University of Chicago Press, 2010).

33 A. Bayo-Moriones and M. Larraza-Kintana, "Profit-Sharing Plans and Affective Commitment: Does the Context Matter?" Human Resourr;e Management 48, no. 2 (2009), pp. 207- 226.

34 N. Chi a nd T. Han, " Exploring th e Linkages between Formal Ownership and Psychological Ownership for the Organization: The Mediating Role of Organizational Justice,· Joumal of Occupational and Organizational Ps)'chology81, no. 4 (2008), pp. 691 - 711 .

35 J. H. Ha n, K. M. Ba ro !, a nd S. Kim, "T igh ten ing Up the Perfo rmance-Pay Li nkage: Roles of Contingent Reward Leadership and Profit-Sharing in the Cross-Level In fluence of Individual Pay-for-Performance," Jounwl of Applied Psycholog)' JOO, no. 2 (2015), pp. 417- 430.

36 R. r. Garrett, "Does Employee Ownership Increase Innovation!" New England Joumal of Enttepreneurship 13, no. 2, (2010), pp. 37-46.

37 D. McCarthy, E. Reeves, a nd T. Turner, "Can Employee Sh are- Ownership Improve Employee Attitudes and Behaviour!" Emploi~e Relations 32, no. 4 (2010), pp. 382- 395.

38 A. Pendleton, "Shared Capitalism at Work: Employee Ownership, Profit a nd Ga in Sha ring, a nd Broad-Based Stock Optio ns," lndt1Strial & Labor Relations Review 64, no. 3 (2011 ), pp. 621- 622.

39 A. Pend leton and A. Rob inson, "Employee Stock Ownership, Involvem ent, and Productivity: An Interaction-Based Approach,• lndt1Strial and Labor Relations Review 64, no. I (2010), pp. 3 - 29.

40 "Ca nada Celebrate.< First Employee Ownership Day," ESOP Association Canada, June 5, 2017, h ttps://\\~Vw.esopca nada.ca/ si ngle-post/ 201 7 / 06/ 05/Ca nada-Celebrates-Fi rst-Em p loyee- Ownersh ip·Day.

41 X. Zhang, K. M. Bartol, K. G. Sm ith M. D. Pfa rrer, a nd D. M. Khanin, "CEOs on the Edge: Earnings Manipulation and Srock. Based Incentive Misalignment," Academ)' of Manageme,1t Journal 51, no. 2 (2008), pp. 241- 258.

42 C. B. Cadsby, F. Song. and F. Tapon, "Sorting and Incen tive Effects of Pay for Perform ance: An Experimental Investigation," Academr of Management Joumal 50, no. 2 (2007), pp. 387- 405.

43 J. H. Han, K. M. Baro!, and S. Kim, 'Tightening Up the Performance- Pay Linkage: Roles of Contingent Reward Leadership and Profit.Sharing in the Cros.<-1..evel Influence of Individual Pay-for-Perfonnance. • Journal of Applied Ps)dtology 100, no. 2 (2015), pp. 417-430.

44 Z. Lin, J. Kelly, and L. Trenberth, "AntecedenL< and Consequence.< of th e In t rod uct ion of Flex ib le Be nefi t Plans in Ch ina," hllenwtional Journal of Human Resource Ma,iagement 22, no. 5 (2011 ), pp. 1128- 1145.

45 r. Stephens, "Flex Pl ans Gain in Popu larity," CA Magazine, January/ February 2010, p. 10.

46 N. Stewart, "The Power of Appreciation: Rewards and Recognit ion Practices in Ca nadian Orga nizations," The Co,iference Board of Omada, June 22, 2017.

47 B. Scudam ore, "Pum p up Employee Pas.,ion, • PROFIT, October 13, 2010, h ttp://"~'~v.profitguide.com/ manage-g row/ human- re.,ources/ pump-up-em ployee-passion-29964.

48 "Building a Better Workforce, " PROFIT, February JG, 2011, http:// W\\~v.profitguide.com/ ma nage-grow/ human-resources/ building- a-better-workforce-30073.

49 See also D. A. Johnson and A. M. Dickinson, "Employee-of-the- Month Programs: Do They Really \.Vork?" Journal of Organizational Behavior Management 30, no. 4 (2010), pp. 308- 324.

570 Endnotes

50 S. E. Markham, K. D. Scott, and G. H. McKee, "Recognizing Good Attendance: A Longitudinal, Quasi-Experimenta l Field Study,· Personnel Psycholog)' 55, no. 3 (2002), p. 641; and S. J. Peterson a nd F. Lu tha ns, "'The Impact of Fi nancial a nd Nonfi nancial Incentives on Bus ine.~'i Unit Outcomes over Time," Jountal of Applied Psrchology91, no. I (2006), pp. 156- 165.

51 C. Xu and C. Liang, "'The Mechanisms Underlying an Employee Recognition Program: in Proceedings of the lntemational Omference on Public Human Resource Management and Innolllltim1, ed. L Hale and (). Zhang Marietta, GA: American Scholars Press, 2013), pp. 28-35.

52 S. Kerr, "On the Folly o f Rewa rd ing A, While Hoping for B, • Academy of Management Executive 9, no. 1 (1995), pp. 7- 14.

53 "More o n the Folly; Academy of Management Executive 9, no. I (1995), pp. 15- 16.

54 Based o n L. r ope and J. Harvey-Serino, "Burn a nd Earn: A Randomized Controlled Trial lncentivizing Exercise d uring Fall Semester for College First-Year Students,· Preventive Medicine 56, no. 3- 4 (March 2013), pp. 197- 201.

55 C. B. Gibson, J. L. Gibbs, T. L. Sta nko, r . Tesluk, a nd S. G. Coh e n, "Including the ' I' in Vir tua lity a nd Mode rn Job Design: Extendi ng the Job Characteristics Model to Incl ude the Moderating Effect of Ind ivid ual Experiences of Electro nic Dependence and Coprese.nce," Orgmiization Science 22, no. 6 (2011), pp. 1481 - 1499.

56 Payscale, "The Most and Least Meaningful Jobs, 2014, • accessed October 14, 2014, http://www.payscale.com/data-packages/ most- and-least-meaningful-jobs/ full-list.

57 J. R. Hackman, "Work Design,· in Improving Life at \.\fork, ed. J. R. Hackman a nd J. L. Suttle (Santa Monica, CA: Goodyear, 1977), p. 129.

58 Based on M. Gagne and D. Shave, "Autonomy in the Workplace: An Essential Ingredient to Employee Engagement and Well-Being in Every Culture?" in Human Autonomy j,i Cross·Cultural Comext: Perspectives on the Psychology of Agency. Freedom, and Well-Being, ed. V. I. Chirkov, R. M. Ryan, and K. M. Sheldon (Berlin, Germany: Springer, 2011 ); and "Freedom's Just Another Word for Employee Satisfaction," Concordia University, January 24, 2011, http://www. concordi a.ca/cunews/ main/ releases/ 2011 / 0 I / 2 4/ freedoms -just- another-word-for-employee-satisfaction. html.

59 S. E. Humphrey, J. D. Nahrgang, and F. P. Morgeson, "Integrating Motivatio nal, Social, and Contextual Work Design Features: A Meta-analytic Summary a nd Theoretical Exten., ion of the \.Vork Design Literature, • Journal of Applied Psrchology 92, no. 5 (2007), pp. 1332- 1356.

60 B. M. Meglino and A. M. Ko rsgaard, "T he Ro le of Other Orientation in Reactions to Job Characteristics," Jounial of Management 33, no. 1 (2007), pp. 57- 83.

61 J. L Pierce, I. Jus.,ila, and A. Cummings, "Psychological Ownership with in the Job Design Context: Revision of the Job Characteristics Model,• Journal of Organizational Behavior 30, no. 4 (2009) , pp. 477-496.

62 C. B. Gibson, J. L. Gibbs, T. L. Sta nko, r . Tesluk, a nd S. G. Coh e n, "Including the ' I' in Vir tua lity a nd Mode rn Job Design: Extendi ng th e Job Ch aracteristics Model to Incl ude the Moderating Effect of Ind ivid ual Experiences of Electro nic Dependence and Coprese.nce," Orgmiization Science 22, no. 6 (2011), pp. 1481 - 1499.

63 B. Ingra m, "Island Health Care Model Shift Criticized By Nurses,• Nanaimo Dail)' News, January 15, 2014, p. AS.

64 T. Silver, "Rotate Your Way to Higher Value,• Baseline March/April 2010, p. 12; and J. J. Salopek, "Coca-Cola Division Refreshes IL< Talent with Diversity Push o n Ca mpus: Workforce Managemenl Online, March 2011, http://\\~vw.workforce.com.

65 Skytrax website review of Singapore Airlines, accessed May 31, 2013, http://\\~vw.airlinequality.com/ Airlines/ SQ.htm.

66 A. Christin i a nd D. r ozzoli, "Workplace Practice.< a nd Firm Performance in Manufacturi ng: A Comparative Study of Ita ly and Britain, · lrltemational Journal of Manpower 31, no. 7 (2010), pp. 818- 842; and K. Kaymaz. "The Effects of Job Rotation Practices o n Motivation: A Research o n Managers in the Auto motive O rganizations," Busitiess and Economics Research Jounial 1, no. 3 (2010), pp. 69- 86.

67 S.-H. Huang and Y.·C. Pan, "Ergonomic Job Rotation Strategy Based on an Automated RGB-D Anthropometr ic Measuring System: Journal of Manufacturing Systems 33, no. 4 (2014), pp. 699 - 710; and r. C. Leider, J. S. Boschman, M. H. \¥. Frings-Dresen, a nd H. F. van der Molen, "Effect.< of Job Rotation on Musculoskeletal Complaints and Related Work Exposures: A Systematic Literature Review: Ergonomics 58, no. 1 (2015), pp. 18- 32.

68 A. M. Grant, "Leading with Mea ni ng: Beneficiary Co ntact,

r rosocial Impact, and the Performance Effects ofTransformational Leadership,· Academ)' of Management Journal 55 (2012), pp. 458- 476; and A. M. Grant and S. K. Parker, "Redesigning Work De.,ign Theories: The Rise of Relational and Proactive Perspectives," Annals of the Academy of Managemetll 3, no. 1 (2009), pp. 317-375.

69 J. Devaro, "A Theoretical Analysis of Relational Job Design a nd Compensation,• Journal of Organizalional Behavior 31 (2010), pp. 279- 301.

70 A. M. Grant, E. M. Campbell, G. Chen, K. Cottone, D. Lapedis, and K. Lee, "I mpact and the Art of Motivation Maintenance: The Effects of Contact with Beneficia ries on Pers istence Behavior," Organizational Behavior and Human Decision Processes 103, no. 1 (2007), pp. 53- 67.

71 Y. N. Turner, I. Hadas-Halperin, and D. Raveh, "Patient Photos Spur Radiologist Empathy and Eye for Detail " (paper presented at the annual meeting o f the Radiological Society of North America, November 2008).

72 A. M. Gran t, "T he Sign ificance of Task S ignificance: Job Performance Effects, Relationa l Mech anisms, and Bou ndary Co nd itions,• Journal of Applied Psrcholog)' no. 93 (2008), pp. 108- 124.

73 K. r ajo and L. Lee, "Corporate-Sponsored Volunteering: A Work De.sign Perspective,· Journal of Business Ethics 99, no. 3 (2011 ), pp. 467- 482.

74 L Duxbury and C. Higgins, "Revisiting \<\fork-Life ls.sues in Canada: The 2012 Nationa l Study on Balancing Work and Caregiving in Canada,· acce.ssed October 14, 2014, http://\\~Vw.healthywork- places.info/wp-contentf up loads/ 2012/ 1 l / 2012 -Natio nal-Work- Long-Sum mary.pdf.

75 K. Bal, "Does Flextime Penalize Night Owls?" Human Resource Execlllive, June 23, 2014, http://\\~vw.hreonline.com/ HRE/view/ story.jhtml ?id=534357257.

76 T. Kato, "\<\fork and Family Practices in Japanese Fi rms: Thei r Scope., Nature., and Impact o n Employee Turnover," International Journal of Human Resource Management 20, no. 2 (2009), pp. 439- 456; and P. Mourdoukoutas, "v\lhy Do \¥omen Fare Better in the German World of Work than in the US?" Forbes, March 25, 2013, http:/fW\,~v.forbe.,.com/ sites/ panosmourdoukoutas/ 2013/ 03/ 25/ why-do-women-fare-better-in-the-ge.nnan-world-0f-work-than-in· the-us/.

77 R. Waring, "Sunday Dialogue: Flexible \<\fork Hours,· New York Times, January 19, 2013, http:/lw,vw.nytimes.com/ 2013/ 01/ 20/ opinion/ su nd a y / sun day-dia logue-flex ib le -work-hou rs . html ?pagewanted=all&_r=O.

78 S. Y. He, "Does Flextime Affect Choice of Departure Time for

Morning Home-Based Commuting Trips? Evidence from Two Regions in California," Transport Polic)' 25 (2013), pp. 210- 221.

79 S. \.Vestcott, "Beyond Flextime: Trashing the Workweek,· Inc. , August 2008, p. 30.

80 B. Y. Lee and S. E. DeVoe, "Flextime and Profitability; /11d11strial Relatio,u 51, no. 2 (2012), pp. 298- 316.

81 K. M. Shockley and T. D. Allen, "\,Vhen Flexibility Help.s: Another Look at th e Avai lability of Flexible Work Arrangements a nd Work-Family Conflict: Journal of Vocatio11al Beltavior 71, no. 3 (2007), pp. 4 79- 493; J.C. Grzywacz, D. S. Carlso n, a nd S. Shulkin, "Schedule Flexibility and Stress: Linking Formal Flexible Arrangements and Perceived Flexibil ity to Employee Health,· Comm,mity. Work, a11d Family 11, no. 2 (2008), pp. 199- 214; a nd L.A. McNa ll, A. D. Masuda, a nd J. M. Nicklin, "Flexible Work Arrangements, Job Satisfactio n, and Turnover Intentions: The Mediating Role of Work-to-Fa mily Enrichment,• Journal of Psycltolog)' 144, no. I (2010), pp. 61- 81.

82 S. Schieman and M. Young, "Is There a Downside to Schedu le Control for the Work-Family Interface?" Journal of Family Issues 31, no. 10 (2010), pp. 1391 - 1414.

83 K. M. Shockley and T. D. Allen, "Investigating the Mes.sing Li nk in Flexible \.Vork Arrangement Utilization: An Individual Difference Perspective," Jo11r11al of Vocatio11al Beltavior 76, no. I (2010), pp. 131- 142.

84 C. L. Munsch, C. L. Ridgeway, a nd J. C. \.Vi lliams, "Pluralistic Ignorance and the Flexibility Bias: Understanding and Mitigating Flextime and Flexplace Bias at Work; Work a11d Occupations 41, no. 1 (2014), pp. 40- 62.

85 D. Eld ridge and T. M. Nisa r, "Employee and O rgan izationa l Impact.< of Flextime Work Arrangements, · Industrial Relatio11s 66, no. 2 (2011), pp. 213- 234.

86 T. Grant, "Job Sharing, · Globe a11d Mail, May 16, 2009.

87 T. Grant, "Job Sharing,· Globe a11d Mail, May 16, 2009.

88 See, for example, E. J. Hill, M. Ferris, a nd V. Martinson, "Doe., It Matter Where You Work? A Comparison of How Three \.Vork Venue.< (Traditiona l Office, Virtual Office, and Home Office) Influence Aspects of \<\fork and Personal/ Family Life,· Journal of Vocatio11al Beltavior 63, no. 2 (2003), pp. 220- 241; B. Williamson, "Managing Vi rtual Workers, · Bloomberg B11si11essweek, Ju ly 16, 2009, http://www.businessweek.com/stories/ 2009-07-15/ managing- virtual-workers; and B. A. Lautsch and E. E. Ko.,sek, "Managing a Blended \.Vorkforce: Telecommuters and Non-Telecommuters,· Orga11izatio11al Dynamics 40, no. 1 (2010), pp. 10- 17.

89 B. Belton, "Best Buy Copies Yahoo, Reins in Telecommuting,• USA Today. March 6, 2013, http://\\~vw.usatoday.com.

90 C. Tkaczyk, "Marissa Mayer Breaks Her S ilence on Yahoo's Telecommuting Policy,· Fort1111e, Apri l 13, 2013, http://fortune. co m/ 2013/ 04 / 19 / marissa-mayer-b reak.s-her-si lence-o n-ya hoos- telecom muting-pol icy/ .

91 C. Karsten.s-Smith, "Remote Work an Escape \¥hen Trapped by Gridlock," Torolllo Star, May 29, 2014, p. Bl.

92 "Canadian Studies on Telework, • /11n0Visio11s C,mada, http://www. ivc.ca/studies/canada/ .

93 M. E. Roloff, "Vslhy Teleworkers Are More Satisfied with Their Jobs Than Are Office-Based Workers: When Less Contact Is Beneficial,• Journal of Applied Comm1111icatio11 Researclt 38, no. 4 (2010), pp. 336- 361.

94 E. E. Kossek, B. A. l.autsch, and S. C. Eaton, "Telecommuting, Control, and Boundaiy Management: Correlate.< of Policy Use and Practice, Job Control, and \<\fork-Family Effectiveness,· Journal of Vocatio11al Beltavior 68, no. 2 (2006), pp. 347- 367.

95 J. Kotkin, "Marissa Mayer's Misstep and the Un.stoppable Rise of Telecommuting, " Forbes, March 26, 2013.

96 L. Ta.skin and F. Bridoux, "Telework: A Challenge to Knowledge Transfer in Organizations.,. hlternational Journal of Human Rescurce Ma11ageme111 21, no. 13 (2010), pp. 2503- 2520.

97 S. M. B. Thatcher and J. Bagger, "\<\fo rking in Paja mas: Telecommuting. Unfairness Sources. and Unfairness Perceptions,"

En d note s 571

Nego1ia1io11 and Co11flic1 Ma11age,11e111 Researclt 4, no. 3 (2011 ), pp. 248- 276.

98 E. C. Dutcher, "The Effects of Telecommuting on Productivity: An Experimental Examination. The Role of Dull and Creative Tasks,• Jounial of Eco11omic Beltavior & Orga11iza1io11 84, no. 1 (2014), pp. 355-363.

99 M. C. Noonan a nd J. L. C lass, "The Ha rd Trut h abou t Telecommuting, • Mo111/tly Labor Review, 2012, pp. 1459- 1478.

100 J. Welch and S. Welch, "The Impo rtance of Being The re, · B11si11essWeek, April 16, 2007, p. 92; Z. I. Barsness, K. A. Diekmann, and M. L. Seidel, "Motiva tion and Opportunity: T he Role of Remote Work, Demographic Dissimilarity, and Social Network Centrality in Impression Management," Academy of Management Journal 48, no. 3 (2005), pp. 401 - 419.

101 P. Zhu and S. C. Mason, "The Impact of Telecommuti ng on Personal Vehicle Usage a nd Environmental Sustai nabi lity,• Jmernational Journal of Environmental Sciet1ce and Technology 11, no. 8 (2014), pp. 2185- 2200.

102 "Secrets of Canada's Best Ma naged Co mpan ies (201 7), • Canadia,i Busi,iess, http://www.ca nadia nbusi ness.com/ best· managed-compa nies/ .twinners; B. Poon Tip, Looptail: How One Company Changed 1/te World b)' Reinventing Business. (Toronto: Ha rperColl ins Canada, 2013); P. Hunter, "Meet the 'Mayor' of G Adventu re.<, Whose Job Is to Make Emp loyees Happy,• tltestar.com , June 6, 2015, https://www.thesta r.com/ news/ i nsight/ 20 i 5 / 06/ 06/ meet-th e-mayor -of -g-adventures-whose- job-is-to-make-employees-happy. htm I.

103 M. Ma rch ingto n, "Ana lysing the Forces Shaping Employee Involvement a nd Participation (EIP) at Orga nisatio n Level in Liberal Market Economies (LMEs), • Human Resource Ma11agement Journal 25, no. I (2015), pp. 1- 18.

104 See, for example, the increasing body of literatu re on empow- erment, such as D. P. Ash mos, D. Duchon, R. R. McDaniel Jr., and J. \,V. Huonker, "What a MeS-<! Participation as a Si mp le Managerial Rule to 'Complexify' Organ iza tions,• Journal of Ma11agement Studies 39, no. 2 (2002), pp. 189- 206; S. E. Seibert, S. R. S ilve r, and v,,1_ A. Randolph, "Taking Empowe rme nt to the Next Level: A Multiple-Level Model of Empowerment, Performance, and SatL,faction, • Academy of Managemelll Journal 47, no. 3 (2004), pp. 332- 349; M. M. Butts, R. J. Vandenberg, D. M. DeJoy, B. S. Schaffer, and M. C. V,,lilson, "Individua l Reactions to High Involvement Work Processes: Investigating the Role of Empowerment and Perceived Organizational Support,• Journal of Occupational Healtlt Ps)'cltology 14, no. 2 (2009), pp. 122- 136; R. Park, E. Applebaum, a nd D. Kruse, "Employee Involvement and C roup Incentive.Ii in Manufacturing Companies: A Multi.Leve.I Analysis,• H1111ia11 Resource Managemelll Journal 20, no. 3 (2010), pp. 227-243; D. C. Jones, P. Kalmi, and A. Kauhanen, "How Doe., Employee Involvement Stack Up? The Effect.< of Human Resource Management Pol icies in a Re.tail Firm," hidustrial Relations 49, no. 1 (2010), pp. 1- 21; and M. T. Maynard, L. L. Gilson, and J.E. Mathieu, "Empowerment- Fad or Fab? A Multilevel Review of the Past Two Decades of Research,• Journal of Ma11agemen1 38, no. 4 (2012), pp. 1231- 1281.

105 M. Ma rch ingto n, "Ana lysing the Forces Shaping Employee Involvement a nd Participation (EIP) at Orga nisatio n Level in Liberal Market Economies (LMEs), • Human Resource Ma11agement Journal 25, no. I (2015), pp. 1- 18.

106 J. J. Caughron a nd M. D. Mu mford, "Embedded Leadership: How Do a Leader's Supe rio rs Impact Midd le -Managemen t Performance?" Leaders/tip Quarterly, June 2012, pp. 342- 353.

107 See, for example, K. L. Miller and P. R. Monge, "Participatio n, Satisfaction, and Productivity: A Meta-anal}~ic Review,• Academy of Managemelll Journal, December 1986, pp. 727-753; J. A. \.Vagner Ill, "Participatio n's Effects o n Performance a nd Satisfaction: A Reconsideration of Resea rch Evidence," Academy of Management

572 Endnotes

Review, April 1994, pp. 312- 330; C. Doucou liagos, "Worker Participation and Productivity in Labor-Managed and Participatoiy Capitalist Firms: A Meta-analysis: Industrial and Labor Relations Review, October 1995, pp. 58- 77; J. A. Wagner Ill, C.R. Leana, E. A. Locke, and D. M. Schweiger, "Cognitive a nd Motivational Frameworks in U.S. Research o n Participatio n: A Meta.analysis o f Primaiy Effects: Joumal of Organizational Behavior 18 ( 1997), pp. 49- 65; E. A. Locke, M. Alavi, and J. A. Wagner Ill, "Participation in Decision Making: An Information Exchange Perspective.," in Research in Personnel and Human Resource Management, vol. 15, ed. G. R. Ferris (Greenwich, CT: JAi Press, 1997), pp. 293- 331; and J. A. Wagner Ill a nd J. A. LePine, "Effects of Pa rticipation o n Performance and Satisfaction: Additional Meta-analytic Evidence,• Ps)'chological Reports, June 1999, pp. 719- 725.

108 D. K. Datta, J. P. Guthri e, and P. M. \<\fright, "Human Resource Management and Labor Productivity: Does Industry Matter?" Academy of Management Joumal 48, no. 1 (2005), pp. 135- 145; C. M. Riordan, R. J. Vandenberg, and H. A. Richardson, "Employee Involvement Climate and Organizational Effectiveness," Human Resouru Management 44, no. 4 (2005), pp. 471 - 488; and J. Kim, J. P. MacDuffie, and F. K. Pil, "Employee Voice and Organizational Performance: Team versus Representa tive Influence," Huma,1

Relatiol!S 63, no. 3 (2010), pp. 371- 394.

109 M. March ington, "Analysing the Forces Shap ing Employee Involvement and Participatio n (EIP) at O rganisation Level in Liberal Market Economies (LMEs), • Human Resource Management Joumal 25, no. I (201 5), pp. 1- 18.

110 M. March ington, "Analysing the Forces Shap ing Employee Involvement and Participatio n (EIP) at O rganisation Level in Liberal Market Economies (LMEs), • Human Resource Management Joumal 25, no. I (201 5), pp. 1- 18.

ll1 N. Nohria, B. Groysberg, and L.-E. Lee, "Employee Motivation: A Powerful New Model,• Harvard Business Review, July-August 2008, pp. 78 - 84.

112 P. R. Lawren ce and N. Nohria, Driven: How Human Nature Shapes Our Choices (San Francisco: Jossey-Bass, 2002).

113 S. Miller, "Variable Pay Spending Spikes to Record High,· Society

for Human Resource Management, September 2, 2014, http://\\~VW. shrm.org/hrdisciplines/compensation/articles/pages/variable-pay- high.aspx.

114 S. Miller, "Companies Worldwide Rewarding Performance with Variable Pay," Society for Human Resource Mmiagement, March 1, 2010, http://\\~vw.shrm.org/hrd iscipl i nes/compensation/articles/ pages/variableworld.aspx.

115 S. Miller, "Asian Firms Offer More Variabl e Pay Than \<\lestern Firms," Society for Human Resource Manageme,1t, March 28, 2012, http://www.shrm.org/h rdiscipl ines/ compensation/articles/pages/ asianvariablepay.aspx.

116 Z. Lin, J. Kellly, and L Trenberth, "Antecedents and Consequences o f the Introductio n of Flexible Benefi t Plans in Ch ina,• The lnternatio,ial Jountal of Human Resource Management 22, no. 5 (2011), pp. 11 28- 1145.

117 R. C. Koo, "Global Added Value of Flexib le Benefits: Benefits Quarterly 27, no. 4 (2011 ), pp. 17- 20.

118 D. Lovewell, "Flexib le Benefi ts: Benefits on Offer: Emplo)'ee Be11efits, March 2010, p. SIS.

119 M. Erez, "Culture and Job Design,• Journal of Organizational Behavior 31, no. 2/3 (2010), pp. 389-400.

110 B. M. Naba and L Fan, "Employee Motivation a nd Satisfaction

in Niger: An Application of the Job Characteristics Model: in Proceedings of the 10th Inteniational Co,iference on /,i,iovation and Management, ed. A. de Hoyos, K. Kaminishi, and G. Duysters, (Wuhan, Ch ina: Wuhan University of Technology Press, 2013), pp. 523- 527.

121 M. F. Peterson and S. A. Ruiz.Quintanilla, "Cultural Socialization as a Source o f Intrinsic Work Motivation," Croup & Organizatio,i Management, June 2003, pp. 188- 216.

122 D. \.Vi lkie, "Has th e Telecommuting Bubbl e Burst?" Society for Human Resource Management, June I , 2015, http://www.sh rm. o rg/pub l icati o ns/h rmagazi ne/ ed i tori alcon ten t/2015/0615/ pages/0615-telecommuti ng.aspx.

123 S. Raghuram a nd D. Fang, "Telecommuting and th e Ro le of Supervisory Power in China," Asia Pacific Jounial of Management 31, no. 2 (2014), pp. 523- 547.

124 See, for instance, A. Sagie a nd Z. Ayca n, "A Cross-Cu ltural Analysis o f Participative Decisio n.Making in Orga nizatio ns," Human Relations 56, no. 4 (2003), pp. 453- 473; and J. Brockner, "Unpacking Count!)' Effects: On the Need to Operationalize the Psychological Determinants of Cross-Natio nal Differences,• in Research in Organizntional Behavior, vol. 25, ed. R. M. Kramer and B. M. Staw (Oxford, UK: Elsevier, 2003), pp. 336- 340.

125 C. Robert, T. M. Probst, J. J. Man occh io, R. Drasgow, and J. J. Lawler, .. Empowerment and Continuous Improvement in the United States, Mexico, Poland, and India: Predicting Fit o n the Basis o f the Dimensions o f rower D istance and Individualism," Joumal of Applied Psychology, October 2000, pp. 643- 658.

126 Z. X. Chen and S. Aryee, "Delegation a nd Employee Work Outcomes: An Examination o f the Cultural Context of Mediating rroce.~ses in Ch ina," Academ)' of Management Journal SO, no. 1 (2007), pp. 226- 238.

127 G. Huang, X. Niu, C. Lee, and S. J. Ashford, "Differe ntiati ng Cogn it ive and Affective Job Insecurity: Anteceden ts and Outcomes,· Journal of Organizational Behavior 33, no. 6 (2012), pp. 752 - 769.

128 Z. Cheng, "1ne Effects of Employee Involvement and Participation o n Subjective \<\lellbei ng: Evidence from Urban China,• Social Indicator, Resean;/J 118, no. 2 (2014), pp. 457- 483.

12.9 Based on J. Surowiecki, "Face Time: New Yorker, March 18, 2013, http://www.newyorker.com/ magazine/2013/03/18/face-time; and L Taskin a nd F. Bridoux, "Telework: A Challenge to Knowledge Transfer in Organizatio ns," /ntemational Joun1al of Human Resource Management 21, no. 13 (2010), pp. 2503- 2520.

130 Th is exe rcise is based o n V.,,. P. Fe rris, "Enlive ning the Job Characteristics Model,• in Proceedings of the 29th Ammal Eastem Academy of Management Meeting, ed. C. Harris and C. C. Lundberg (Baltimore, MD: May 1992), pp. 125- 128.

131 Based o n J. Hansen, "Canada's Top CEOs Ea rn 193 T imes Average Worker's Salaiy; cbcnews, Janual)' 3, 2017, http://W\,~V. cbc.ca/news/business/top-ceo-pay-J.3907662; R. Kerber and P. Szekely, "CEO Pay Still Dwarfing Pay of U.S. Workers: Union Report, May 9, 2017, https://"~'~v.usnews.com/news/top-news/ articles/201 7 -05-09/earnings-gap-over-us-workers-grows-for-s-p- 500-ceos-union-report; J. McFarland, "Major CEO Pay Increases in the Cards Again; Globe and Mail, June 1, 2014, http://W\,~V. theglobeandmail.com/ report-on-business/careers/management/ execu tive.compensatio n/pay· iS· On·the· rise-fo r-ca nadas· tOp· executives/articlel8940701/; T. Tedesco, "U.S. CEO Pay Leaves Canadian.< in Dust; Up 9o/o in a Year,• National Post, May 30, 2014, p. Al ; E. Chemi and A. Giorgi, "1ne Pay-for-Performance Myth; Bloomberg Business,ioeek, July 22, 2014, http://"~vw.businessweek. com/articles/2014-07-22/for-ceos-correlation-between-pay-and- stock-performance-is-pretty-random; and "How They Performed,• Financial Post Magazine, November 2013, p. 43.

132 Based on P. Coy, "The Leisure Gap,· Bloomberg Businessweek, July 23- 29, 2012, pp. 8- 10; A. B. Krueger and A. I. Mueller, "Time Use, Emotional Well-Being, a nd Unemp loyment: Evidence from Longitudinal Data," Americnn Economic Review, May 2012, pp. 594- 599; a nd L. Kwoh, "More Fi rms Offer Option to Swap Cash for Time, · Wall Street Journal, September 26, 2012, p. 86.

133 R. Feintzeig. ' When the Annual Raise Isn' t Enough,· Wall Street Joumal, July 16, 2014, pp. Bl , 85; J. C. Marr and S. Thau, ' Falling from Great (and Not.so.G reat) Heigh ts: How In itial Status Posit ion Influences Perform ance after Status Loss,• Academy of Manageme11t Journal 57, no. I (2014), pp. 223 - 248; a nd ' Pay Equity & Discrimination,• IWPR, h ttp://W\,~v.iwpr.org/init iatives/ pay .,equity ·and ·d iscri mi nation.

134 Based on J. R. Hackman, "'Nork Design." in Improving Life at \<\fork, ed. J. R. Hackman and J. L. Suttle (Santa Monica, CA: Goodyear, 1977) , pp. 132- 133.

Chapter 6

1 Opening vignette based o n T. Hatherly, "New Summer Program in East York Helps Kids Bridge Nutrition Gap,• East York Mirror, August 17, 2016; and personal interview notes, July 201 7.

2 J. R. Katzenback and D. K. Smith, The Wisdom of Teams: Creating the High·Performance OrganiuJtio11. (Cambridge, MA: Harvard Busines., Review Press, 201 5), p. 214.

3 R. Cross, R. Rebele, a nd A. Grant, ' Collaborative Overload,• Harvard Busi11ess Review, January- February 2016, pp. 74-79.

4 J. Mathieu, M. T. Maynard , T. Rapp, and L. G ilson, 'Tea m Effectivenes., 1997-2007: A Review of Recent Advancem enL< and a Glimpse into the Future,• Joumal of Ma11ageme11t 34, no. 3 (2008), pp. 410- 476.

5 See, for exam ple, A. Erez, J. A. LePine, and H. Elms, ' EffecL< of Rotated Leadership and Peer Eva luation on the Functioning and Effectiveness of Self.Managed Teams: A Q uasi. Experiment,· Perso11nel Psycl1olog,• (Winter 2002), pp. 929- 948.

6 See, for exam ple, A. Erez, J. A. LePine, and H. Elms, "EffecL< of Rotated Leaders hip and Peer Eva luation o n the Fu nctioning and Effectiveness of Self.Managed Teams: A Q uasi. Experiment,· Perso11nel Psycl1olog,• (Winter 2002), pp. 929- 948.

7 G. L. Stewart, S. H. Courtright, and M. R. Barrick, "Peer. Based Control in Self.Managing Teams: Linki ng Rational and Nonnative Influence with Ind ividua l a nd Group Performance,· Joumal of Applied Ps)'chology97, no. 2 (2012), pp. 435-447.

8 C. W. La ngfred, "The Downs ide of Self. Managemen t: A Longitudinal Study of the Effea< of Conflict o n Trust, Autonomy, and Task Interdependence in Self.Managing Teams,· Academ)' of Ma11ageme11t Joumal 50, no. 4 (2007), pp. 885-900.

9 B. H. Bradley, B. E. Postlethwa ite, A. C. Klotz, M. R. Hamdani, and K. G. Brown, ' Reaping the Benefi ts of Task Conflict in Teams: The Critical Ro le of Team Psychological Safety Climate, • Joumal of Applied PS)'Chology97, no. 1 (2012), pp. 151- 158.

10 J. Deva ro , 'The EffecL< of Self.Managed a nd Closely Managed Teams on Labor Productivity and Product Quality: An Empirical Ana lysis of a Cross.Section of Establishments,· /11dustrial Relatio11s 47, no. 4 (2008), pp. 659- 698.

11 A. Shah, "Starbuck.< Strives for Insta nt Gra tification with Via Launch,• PRWeek, December 2009, p. 15 .

12 F. Aime, S. Humphrey, D. S. DeRue, and J. B. Paul, 'The Riddle of Heterarchy: Power Transitions in Cross. fu nctional Teams," Academy of Ma11ageme11t Joumal 57, no. 2 (2014), pp. 327-352.

13 See, for example, L. L. Martins, L. L. Gilson, and M. T. Maynard , ' Virtual Teams: What Do We Know and \<\!here Do We Go from Here?" Joumal of Manageme11t, Novem ber 2004, pp. 805-835; and B. Leonard, "Managing Virtual Teams." HR Magazi11e, June 2011 , pp. 39- 42.

14 J. E. Hoch a nd S. V\I. J. Kozlowski, ' Lead ing Virtual Teams: Hierarchical Leadership, Structura l Supports, and Shared Team Leadership," Journal of Applied Psychology 99, no. 3 (2014), pp. 390- 403.

15 'Virtual Teams a First in Canada,• Fi11ancial Post, January 19, 2011 , http://business.financialpost.com/ 201 I /OJ/ 19/ mba.virtual·teams·

Endnotes 573

a.first·in·canadaf. Material reprinted with the express permission of: National Post, a division of Postmedia Network Inc.

16 C. Joinson, ' Managing Virtual Teams,• HR Magazi11e, June 2002, p. 71. Repri nted with the pennis.,ion of HR Magazine, published by the Society for Human Resource Management, Alexandria, VA.

17 A. Malhotra, A. Majch12ak, and B. Rosen, ' Leading Virtual Teams,• Academy of Manageme11t Perspectives, Feb ruary 2007, pp. 60-70; and J. M. Wilson, S. S. Straus, and B. McEvily, 'All in Due Time: The Development of Trust in Computer Mediated and Face·tO· Face Teams," OrganiZ11tional Behavior and Human Decision Processes 19 (2006), pp. 16- 33.

18 Based o n P. Ti lstone, "Cut Carbon .. . and Bills." Director, May 2009, p. 54; L. C. Latimer, ' 6 Strategies for Sustainable Business Travel," Gree11biz, February II , 2011, http://,VW\v.greenbiz.com/ blog/20 II / 02/ JJ / 6·Stra tegies·sustai nable.busi neSS·travel; a nd F. Gebhart, 'Travel Takes a Big Bite O ut of Corporate Expenses,• Travel Market Report, May 30, 2013, http://www.travelmarketreport. com/ articlesfTravel·Takes·Big· Bite·O Ut·Of·Corporate· Expenses.

19 P. Balkundi and D. A. Harrison, "Ties, Leaders, and Time in Teams: Strong Inference about Network Structure's Effects on Team Viability and Per forma nce, · Academy of Manageme11t Joumal 49, no. 1 (2006), pp. 49- 68; G. Chen, B. L. Kirkman, R. Kanfer, D. Alle n, and B. Rosen, "A Multi level Study of Leadersh ip, Empowennent, and Performance in Teams,· Jounial of Applied

Ps)'cltolog,• 92, no. 2 (2007), pp. 331- 346; L. A. DeChurch a nd M.A. Marks, ' Leadership in Multiteam Systems,• Joumal of Applied Psychology 91, no. 2 (2006), pp. 311- 329; A. Srivastava, K. M. Bartol, and E. A. Locke, "Empowering Leadership in Management Teams: Effects on Knowledge Shari ng. Efficacy, and Perfonnance." Academy of Ma11ageme11t Joumal 49, no. 6 (2006), pp. 1239- 1251; and J. E. Mathieu, K. K. Gilson, and T. M. Ruddy, "Empowerment a nd Team Effectiveness: An Em p irica l Test of an Integrated Model,· Joumal of Applied Ps)'cholog,• 91, no. I (2006), pp. 97-108.

20 R. B. Davison, J. R. Hollenbeck, C. M. Barnes, D. J. Sleesman, and D. R. llgen, "Coord inated Action in Mult i team Systems,· Joumal of Applied Ps)'clwlogy 97, no. 4 (2012), pp. 808 - 824.

21 M. M. Luciano , J. E. Mathieu, and T. M. Ruddy, "Leading Mult iple Tea ms: Average and Relative External Leadership Influence.< o n Team Empowerment and Effectiveness,· Journal of Applied Psychology 99, no. 2 (2014), pp. 322- 331.

22 Vignette based on personal interview notes, July 2017.

23 Based on Ed Ta it, ' Bombers Believe in Wi lly,• W i1111ipeg Free Press, August 5, 2014, p. DI; 'Talent, Teamwork Fuel Bombers Turnaround." Brando11 Su11, August 6, 2014; G. Lawless, 'They've Got a Marquee Man, Now Bombers' Task Is a Talent Hunt to Fill Supporting Roles." Wi1111ipeg Free Press, October 29, 2014; a nd ' Coach Will Keep Tabs On Players' Effort,· Wi1111ipeg Free Press, October 30, 2014, p. 03.

24 K. S. Wilson a nd H. M. Baumann, "Capturing a More Complete View of Em ployee.,' Lives Outside of\.Vork: The In troduction and Development of New lnterro le Conflict Constructs," Persomtel Psychology 68, no. 2 (201 5), pp. 235-282.

25 See, for exa mple, F. T. Amstad, L. L. Meier, U. Fasel, A. Elfering. and N. K. Semmer, "A Meta.analysis ofVs'ork·Fam ily Conflict and Various Outcomes with a Special Emphasis o n Cross.Domain verstL< Matching. Domain Relations,· Joumal of Occupational Health Psychology 16, no. 2 (2011), pp. 151- 169.

26 K. S. 'A'ilson a nd H. M. Baumann, "Capturing a More Complete View of Em ployee.,' Lives Outside of\.Vork: The Introduction and Development of New lnterro le Conflict Constructs," Personnel Psychology 68, no. 2 (201 5), pp. 235-282.

27 D. Vora a nd T. Kostova, ' A Model of Dua l O rgan iza t io nal Identification in the Context of the Multinational Enterprise,"' Joumal of Orga11iZ1Jtional Behavior 28 (2007), pp. 327- 350.

574 Endnotes

28 C. Reade, ' Dua l Identification in Mu ltinational Corporations: Loca l Managers a nd T heir Psychologica l Attach ment to the Subsidiary versus the Global Organization: /11tematio11al Joumal of Human Resour<:£ Ma11ageme111 12, no. 3 (2001 ), pp. 405- 424.

29 E. H. Schein, Organizational Ps)'chology, 3rd ed. (Englewood Cliffs, NJ: Prentice Hall, 1980), p. 145.

30 Y. Huang. K. M. Kendrick, and R. Yu, ' Conformity to the Opinions of Other People LasL< for No More Tha n 3 Days,• Psychological Science 25, no. 7 (2014), pp. 1388- 1393.

31 M. S. Hagger, P. Rentzelas, and N. K. D. Chatzisrantis, ' Effecc< of Individualist a nd Collectivist Gro up Norms and Choice on Intrinsic Motivatio n," Motivation a,id Emotio,i 38. no. 2 (2014), pp. 215- 223; a nd M. G. Ehrhart a nd S. E. Naumann, ' Organizational Citizenship Behavior in Work Groups: A Group Norms Approach,• Joumal of Applied Ps)'clwlogy, December 2004, pp. 960- 974.

32 Adapted fro m P. S. Good man, E. Ravlin, and M. Sch mi nke, "' Understanding Groups in O rganizations," in Research i,i Orga11iza1io11al Behavior, vol. 9, ed. L L. Cummings and 8. M. Staw (G reenwich, CT: JAi Press, 1987), p. 159.

33 Sub mitted by Do n Mis kima n, Chai r and U-C Professor of Management, Malaspina University College, Nanaimo, BC. Vslith pennis.o;ion.

34 D. C. Feldman, "1ne Development and Enforcement of Group Norms,· Academ)' of Management Jouma/, January 1984, pp. 47- 53; and K. L. Bettenhausen and J. K. Murnighan, "1ne Development of an lntragroup Norm and th e Effecc< of Interpersonal a nd Structura l Challenges," Admi,iistratille Science Quarterl)', March 1991, pp. 20- 35.

35 D. C. Feldman, "1ne Development and Enforcement of Group Norms,· Academ)' of Management Jouma/, January 1984, pp. 47- 53; and K. L. Bettenhausen and J. K. Murnighan, "1ne Development of an lntragroup Norm and th e Effecc< of Interpersonal a nd Structura l Challenges," Admi,iistrat-ive Science Quarter/)', March 1991, pp. 20- 35.

36 R. 8. Cialdini and N. J. Goldstein, 'Social lnAuence: Compliance and Conformity,• Annual Review of Psyclwlogy 55 (2004), pp. 591- 621.

37 S. E. Asch, "Efferu of Group Pressure upon the Modification and Distortion of Judgments,• in Groups, Leadership and Men, ed. H. Guetzkow (Pittsburgh, PA: Carnegie Press, 1951), pp. 177- 190; a nd S. E. Asch, "Studies of Independence and Conformi ty: A Minority of O ne Against a Unanimous Majority,• Psychological Monographs: General and Applied 70, no. 9 (1956), pp. 1- 70.

38 S. L. Robinson a nd A. M. O'Lea ry-Kelly, ' Monkey See, Monkey Do: The Influence of Work Groups on the Antisocial Behavior of Emp loyees,· Academ)' of Ma11ageme111 Journal 4 1 ( J 998) , pp. 658- 672.

39 J.M. George, ' Personality, Affect and Behavior in Groups,• Joumal of Applied Ps)'clwlogy 78 (1993), pp. 798- 804; and J. M. George a nd L. R. James, ' Personality, Affect, and Behavior in Groups Revisited: Comment on Aggregation, Levels of An alysis, and a Recent Applicatio n of With in and Between Analysis,· Joumal of Applied PS)'Chology 7 8 (1993), pp. 798- 804.

40 J. A. Goncalo, J. A. Chatman, M. M. Duguid, and J. A. Kennedy, "'Creativity from Constraint? How the Political Correctness Norm Influences Creativity in Mixed.Sex Work Croups." Administrative Science Quarlerl)' GO, no. 1 (2015), pp. 1- 30.

41 E. Gonzalez-Mule, D. S. DeGeest, 8. W. McCormick, J. Y. Seong. and K. G. Brown, "Can VVe Get Some Cooperation Around Here? The Mediating Role of Group Norms o n the Relationship between Team Personality and Individual Helping Behaviors,• Journal of Applied Ps)'chology 99, no. 5 (2014 ), pp. 988- 999.

42 T. Mas.,on a nd I. FriL<che, 'Adherence to Climate Change-Related lngroup Norms: Do Dimensions of Group Identi fication Matter?' European Jou ma/ of Social Ps)'chology 44, no. 5 (2014 ) , pp. 455-465.

See R. J. Bennett and S. L. Robinson, "The Past, Present, and Future of \,Vorkplace Deviance,• in Organizational Behavior: T/Je Slate of lhe Science, 2nd ed., ed. J. Greenberg (Mahwah, NJ: Erlbaum, 2003), pp. 237-271; and C. M. Berry; D.S. O nes, and P.R. Sackett, "Interpersonal Deviance, Organizationa l Deviance, and Thei r Common Correlates: A Review and Meta.analysis," Journal of Applied Psychology 92, no. 2 (2007), pp. 410- 424.

M. A. Baysinger, K. T. Schere r, a nd J. M. LeBreton, "Exploring the Disruptive Effecc< of Psychopathy and Aggression o n Group Processes and Group Effectiveness, · Joumal of Applied Psycltolos,• 99, no. I (2014), pp. 48 - 65.

T. C. Re ich and M. S. Hershcovis, "Observ ing Workp lace Incivility,· Journal of Applied Psychology JOO, no. 1 (2015), pp. 203- 215; and Z. E. Zhou, Y. Yan, X. X. Che, and L. L. Meier, "Effect of Workplace Incivility on End-of-\,Vork Negative Affect: Examining Individual and Organizational Moderators in a Daily Diary Study,• Journal of Occupational Health Psychology 20, no. 1 (2015), pp. 117- 130.

See C. Pearson, L M. Andersson, a nd C. L. Porath, ' Workplace Incivility," in Counterproductive Work Behavior: lnvestigatio,is of Aclors and TargelS, ed. S. Fox a nd P. E. Spector (Washington, DC: American Psychological Association, 2005), pp. 177- 200.

S. Lim, L. M. Cortina, and V. J. Magley, ' Personal a nd Workgroup Incivi lity: Impact o n \.Vork a nd Health Outcomes,· Journal of Applied Psycl1ology 93, no. I (2008), pp. 95- 107.

M. S. Christian and A. P. J. Ellis, "Examining the Effecu of Sleep Deprivation on \.Vorkplace Deviance: A Self-Regulatory Perspective, • Academ)' of Management Joumal 54, no. 5 (2011 ), pp. 913- 934.

S. L. Robinson and A. M. O'Leary-Kelly, "Monkey See, Monkey Do: The Influence of Work Groups o n the Antisocial Behavior of Employees, · Academ)' of Management Joumal 41 ( J 998), pp. 658- 672; and T. M. Glomb and H. Liao, "Interpersonal Aggre.s.,ion in Workgroups: Social Influence, Reciprocal, and Individual Effero, • Academ)' of Management Joumal 46 (2003), pp. 486- 496.

r. Bamberger and M . Biron, "Group Norms and Excessive Absenteeism: The Role of Peer Referent Others, • Orga11iza1io11al Behavior and Human Decision Processes 103, no. 2 (2007), pp. 179- 196; and A. Vaiiniinen, N. Tordera, M. Kivimaki, A. Kouvonen, J. Pentti, A. Linna, and J. Vahtera, "The Role of Work Group in Individual Sickness Absence Behavior,• Journal of Hen/ti, & Human Behavior 49, no. 4 (2008), pp. 452- 467.

M. S. Cole, F. Walter, a nd H. Bruch, "Affective Mechan is ms linking Dysfunctional Behavior to Performance in Work Teams: A Moderated Mediation Study,• Joumal of Applied Ps)'clwlogy 93, no. 5 (2008), pp. 945- 958.

8. W. Tuckman, ' Developmental Sequences in Small Groups,· Ps)'cltological Bulletin, June 1965, pp. 384- 399; 8. V\I. Tuckman and M. C. Jensen, "Stages of Small -Group Developmen t Revisited,• Group and Orga11izatio11al Studies, December 1977, pp. 419-427; and M. F. Maples, "Group Development: Extending Tuckman's Theoty, • Journal for Specialists in Group \.\fork, Fall 1988, pp. 17- 23 .

J. K. Ito, C. M. Brotheridge, "Do Teams Grow Up One Stage at a Time?: Exploring the Complexity of Group Development Models,• Team Performance Mmiagemet1t: An hlteniational Journal 14, no. 5/6 (2008), pp. 214- 232.

R. C. Ginnett, "1ne Airl ine Cockpit Crew, · in Groups 111at Work (and 111ose Tlta1 0011'1), ed. J. R. Hackman (San Francisco: Jossey- Bass, 1990).

D. A. Bonebright, "40 Years Of Storming: A Historical Review of Tuckman's Model of Small Group Development, • Human Resource Development /111ernatio11al 13, no. I (2010), pp. 111- 120.

M. J. Garfield and A. R. Denis, "Toward an Integrated Model of Group Development: Disruption of Routines by Technology. Induced Change, · Journal of Management /11fon11atio11 Sysiems 29,

no. 3 (2012), pp. 43- 86; M. J. Waller, J.M. Conte, C. B. Gibson, a nd M. A. Carpenter, "The Effect of Individ ual Perceptio ns of Deadlin~ on Team Pe.rfo nnance," Academy of Management Review, October 2001, pp. 586- 600; and A. Chang, P. Bord ia, and J. Duck, "'Punctuated Equilibrium and Linea r Progressio n: Toward a New' Understanding o f Group Development,• Acndem)' of Managemelll Joumal, February 2003, pp. JOG- II 7.

57 C. J. G. Gersick, "Time a nd Transition in Work Teams: Toward a New Model of Group Development,· Academy of Management Joumal, March 1988, pp. 9- 41; a nd C. J. G. Gersick, "Marking T ime: Pred ictab le T ra ns itio ns in Task Groups,· Academ)' of Managemelll Joumal, June 1989, pp. 274- 309.

58 M. M. Kazme r, "Disengaging from a Dis tributed Research Pro ject: Refi ning a Model of Group Departu res, • Joumal of the American Society for Information Science and Technology, April 2010, pp. 758- 771.

59 M. M. Kazme r, "Disengaging from a Dis tributed Research Pro ject: Refi ning a Model of Group Departu re.<, • Joumal of the American Society for Information Science and Technology, April 2010, pp. 758-771.

60 Vignette based on personal interview notes, July 201 7.

61 V. Gonza lez-Roma a nd A. Hernandez, "Climate Uniform ity: Its JnOuence on Team Commu nicatio n Quality, Task ConO ict, a nd Team Performance, · Journal of Applied Ps)'cltologr 99, no. G (2014), pp. 1042- 1058; C. F. Peralta, P. N. Lopes, L. L. Gilson, r. R. Lourenco, a nd L. Pa is, .. In novation Processes and Team Effectiveness: The Role o f Goa l Clarity and Commitment, and Team Affective Tone," Journal of Occupatio,ial and Organizational Ps)'clwlogy 88, no. 1 (2015), pp. 80- 107; L Thompson, Making the Team (Upper Saddle River, NJ: Prentice Hall, 2000), pp. 18- 33; a nd J. R. Hackman, Leading Teams: Setting the Stage for Great Perfonnance (Bo.,ton: Harvard BLL<ines< School Press, 2002).

62 See G. L. Stewart a nd M. R. Ba rrick, "Tea m Structu re a nd Perfonnance: Assessing the Mediating Role of lntrateam Proces.'i and the Moderating Role of Task Type,· Acndem)' of Management Joumal, April 2000, pp. 135- 148.

63 E. M. Sta rk, "In te rdependence a nd Preference for Group Work: Ma in a nd Congruence EffecL< o n the Satisfactio n a nd Perform ance of Gro up Members,· Jounial of Management 26, no. 2 (2000), pp. 259- 279; and J. V.,,. Bishop, K. D. Scott, a nd S. M. Bu rroughs, "Support, Commitment, a nd Employee Outcomes in a Team Environment," Journal of Mmiagement 26, no. G (2000), pp. 1113- ll32.

64 D. E. Hyatt and T. M. Ruddy, "An Examination of the Relationship between \+Vork Group Characteristics and Perfonnance., " Per.som1el Psyc/10/og)' SO, no. 3 (1 997), p. 577.

65 D. Aarts, ' Canada's Smartest Employers 2014: PROFIT, November 7, 2013, http ://www.pro fitgu ide.com/ manage-grow/ human- resources/ meet-canada<-smartest-employers-2014-59150/ 2.

66 J. R. Hackman, Leading Teams (Boston: Harvard Business School Press, 2002).

67 P. Balkundi and D. A. Harrison, '"fies, Leaders, and Time in Teams: Stro ng Infere nce a bo ut Network Structure's Effects o n Tea m Viability and Performance,• Academy of Manageme111 Joumal 49, no. I (2006), pp. 49 - 68; G. Chen, 8. L. Kirkman, R. Ka nfer, D. Allen, and 8. Rosen, "A Mu ltileve l Study of Leadership, Empowerment, a nd Performance in Teams,• Journal of Applied Psyc/10/ogy 92, no. 2 (2007), pp. 331- 346; L. A. DeChurch and M. A. Marks, "Leadership in Multitea m Systems," Joumal of Applied Psychology 91, no. 2 (2006), pp. 311 - 329; A. Srivastava, K. M. Bartol, and E. A. Locke, "Empowering Leadership in Management Teams: Effects on Knowledge Sharing, Efficacy, and Performance, • Academ)' of Managemelll Journal 49, no. G (2006), pp. 1239- I 251; and J. E. Mathieu, K. K. Gilson, and T. M. Ruddy, "Empowerment a nd Tea m Effectiveness: An Empir ical Test of a n Integrated Model: Journal of Applied Psyc/101ogr91, no. I (2006), pp. 97- 108.

End notes 575

68 J. L. Berdahl and C. Anderson, "Men, Women, and Leadership Centralizatio n in Groups over Time," Group D)'namics: Theory, Research, and Practice 9, no. I (2005), pp. 45-57; and V.'. Immen, "'The More V.1omen in Groups, the Better,• Globe and Mail, April 27, 2005, p. C3 .

69 K. T. Dirks, "Trust in Leadership and Team Performance: Evidence from NCAA Basketball,· Joumal of Applied Psycholog)', December 2000, pp. 1004- 1012; M. \.Villiams, "In \.Vh om \.Ve Trust: Group Membe rship as an Affective Context fo r Trust Development, " Academy of Ma11age111e111 Review, July 2001, pp. 377- 396; and J. Schaubroeck, S.S. K. Lam, and A. C. Peng, "Cognition-Based and Affect-Based Trust as Mediators of Leader Behavior JnOuences on Team Performance," Journal of Applied Psychology, O nline First Publication, February 7, 2011, doi: 10. J037/a0022G25.

70 8. A. De Jong, and K. T. Dirks, "Beyond Shared Perceptio ns of Trust a nd Mon ito ring in Tea ms: Implications of Asym metry and Dissensus, • Journal of Applied Ps)'cltology 97, no. 2 (2012), pp. 391-406.

71 P. L. Schindler and C. C. Thomas, "'The Structure of Interpersonal Trust in the Workplace," Ps)'chological Reports, October J 993, pp. 563- 573.

72 Based on D. L. Ferrin and N. Gillespie, "Trust Differences Across National-Societal Cultures: Much to Do, or Much Ado About Nothing,· in Orga11i.z1Jtional Tntst: A Culn,ral Perspective, ed. M. N. K Sanders, D. Skinner, G. Dietz, N. Gillespi e, and R. J. Lewicki (New Yo rk: Cambridge Univers ity Press, 2010), pp. 42 - 86; and J. Lau ring and J. Selmer, "Openness to Diversity, Trust a nd ConOict in Multicultural Organizations: Joumal of Ma11agemen1 & Orga11izntion, November 2012, pp. 795- 806.

73 G. Brown, C. Crossley, and S. l. Rob inson, "Psycho logical Ownership, Territorial Behavior, and Being rerceive:d as a Tea m Contributor. The Critical Role of Trust in the Work Enviro nment, • Personnel Ps)'clwlogy 67 (2014), pp. 463- 485.

74 See F. Ai me, C. J. Meyer, a nd S. E. Humph rey, "l egitimacy of Team Rewards: Analyzing Legitimacy as a Cond ition for the Effective ness o f Team Incentive Designs," Jounrnl of Business Research 63, no. I (2010), pp. G0- 66; and P. A. Bamberger a nd R. Levi, "'Team. Based Reward Al location Structures and the Helping Behaviors o f Outcome-Interdependent Team Members,• Joumal of Ma11agerial Ps)'clwlogy 24, no. 4 (2009), pp. 300- 327; and M. J. Pearsall, M. S. Christia n, and A. P. J. Ell is, "Motivating Interdependent Teams: Individual Rewards, Shared Rewards, o r Something in Between?" Jounial of Applied Psycholog)' 95, no. I (2010), pp. J 83- 191.

75 K. Merri man, "Low-Trust Tea ms Prefer Ind ivid ualized Pay,• Harvard Business Review, November 2008, p. 32.

76 J. Pfeffer and N. La ngton, "The Effect of V.•age Dispersio n o n Satisfaction, Productivity, and Working Collaboratively: Evidence from College and U niversity Facu lty, " Administrative Science Quarterly 38 (1 993), pp. 382-407.

77 M. Bloom, "The Performa nce Effects o f Pay Dispersio n on Individuals and Organizations," Arodem)' of Management Journal 42 (1999), pp. 25- 40.

78 8. Beersma, J. R. Hollenbeck, D. E. Con lo n, S. E. Hu mphrey, H. Moon, and D. R. llgen, "Cutthroat Cooperatio n: The Effects o f Team Role Decisio ns o n Adaptation to Alternative Reward Structures," Organizntio,ial Behavior and Human Decision Processes 108, no. I (2009), pp. 131- 142; a nd M. D. Joh nson, S. E. Humph rey, D. R. llgen, D. Ju nd t, and C. J. Meyer, "Cutthroat Cooperation: Asym metrical Adaptation to Changes in Team Reward Structu res, " Academy of Manageme,11 Journal 49, no. 1 (2006), pp. 103- 119.

79 N. Middlemiss, "We V.1ere Dead \.Vrong,' Admits Google HR Team,• HRD Canada, March 7, 2016, http://www.hrmonline.ca/ hr-news/ we-were-dead-wrong-admits-google-hr-team-204028.aspx; and C. Duhigg, "\<\!hat Google Learned from Its Quest to Build the Perfect

576 Endnotes

Team: New York Times Magazine, February 25, 2016, http.s://www. nytimes.com/ 2016/ 02/ 28/ magazine/ what-google-learned-from- i ts-quest-to-bui Id-the-perfect-team.html? _r=O.

80 R. R. Hirschfeld, M. H. Jordan, H. S. Feild, W. F. Giles, and A. A. Armenakis, ' Becoming Team Players: Team Members' Mastery of Teamwork Knowledge as a rredictor of Team Task Proficiency and Observed Teamwork Effectiveness,· Joumal of Applied PS)dwlogJ• 91, no. 2 (2006), pp. 467- 474; and K. R. Randa ll, C. J. Resick, and L. A. DeChurch, ' Building Team Adaptive Capacity: The Roles of Sensegiving and Team Composition,• Joumal of Applied Psychology 96, no. 3 (2011 ), pp. 525- 540.

81 H. Moon, J. R. Hollenbeck, a nd S. E. Humphrey, "Asymmetric Adaptab ility: Dynam ic Tea m Structu res a< O ne-\.Vay Streets,* Academ)' of Management Journal 47, no. 5 (October 2004) , pp. 681- 695; A. P. J. Ell is, J. R. Hollenbeck, and D.R. llgen, *Team Leami ng: Collectively Connecting the Dots: Joumal of Applied Psycholog)' 88, no. 5 (October 2003), pp. 821 - 835; C. L. Jackson a nd J. A. LePine, ' Peer Responses to a Team's \.Veakest Li nk: A Test and Extension of LePine and Van Dyne's Model,• Joumal of Applied PS)'Chology 88, no. 3 (June 2003), pp. 459- 475; and J. A. LePine, "Team Adaptation a nd Postchange Performance: Effects of Team Composition in Terms of Members' Cogn itive Abil ity and Personality,• Joumal of Applied PS)'chology 88, no. 1 (February 2003), pp. 27-39.

82 C. C. Cogliser, W. L. Gardner, M. B. Cavin, and J. C. Broberg. "Big Five Personality Factors a nd Leader Em ergence in Virtual Teams: Relationships with Team Trustworthiness. Member Perfonnance Contributions, and Tea m Performance," Group & Organization Management 37, no. 6 (2012), pp. 75 2-784; and *Deep-Level Composition Va riables as Predictors of Tea m Perfo rmance: A Meta-analysis,· Journal of Applied PS)'chology 92, no. 3 (2007), pp. 595- 615.

83 T. A. O' Neill and N. J. Allen, ' Personality and the Predictio n of Tea m Performance,* European Joumal of Persona/ii)• 25, no. 1 (2011 ), pp. 31- 42.

84 S. E. Humph rey, J. R. Hollenbeck, C. J. Meyer, a nd D. R. llgen, ' Personality Configurations in Self-Managed Teams: A Natural Experiment on th e Effects of Max imizing and Mini mizing Variance in Traits,• Joumal of Applied PS)'cholog)' 41, no. 7 (2011 ),

pp. 1701- 1732.

85 A. P. J. Ell is, J. R. Hollenbeck, and D. R. llgen, *Team Leaming: Collectively Connecting the Dots, · Journal of Applied Ps)'cl1ology 88, no. 5 (October 2003), pp. 821- 835; C. 0 . L. H. Po rter, J. R. Hollenbeck, and D. R. Jlgen, "Backing Up Behaviors in Teams: T he Role of Persona lity and Legitimacy of Need, · Journal of Applied Ps)'clwlogy 88, no. 3 (June 2003), pp. 391- 403; and J. A. Colquitt, J. R. Hollenbeck, and D. R. llgen, "Computer-Assisted Commu nication and Team Decision.Making Performance: The Moderating Effect of Opennes., to Experience,• Joumal of Applied Psyclwlog)' 87, no. 2 (April 2002), pp. 402 -410.

86 B. H. Bradley, B. E. Postlewa ite, and K. G. Brown, ' Ready to Rumble: How Team Personality Composition and Task Conflict Interact to Improve Performance,• Joumal of Applied PS)'clwlogy 98, no. 2 (2013), pp. 385- 392.

87 E. Gonzalez-Mule, D. S. DeCeest, B. W. McCormick, J. Y. Seong. and K. C. Brown. "Can We Get Some Cooperation around Here? The Mediating Role of Group Norms o n the Relationship between Team Personality and Individual Helping Behaviors,• Joumal of

Applied Ps)'chology99, no. 5 (2014), pp. 988- 999.

88 S. E. Humphrey, F. P. Morgeson, and M. J. Mannor, "Developing a T heory of th e Strategic Core of Teams: A Role Compositio n Model of Tea m Performance,• Joumal of Applied PS)'chology 94, no. 1 (2009), pp. 48- 61.

89 C. Ma rgerison and D. McCann, Team Management: Practical New Approaches (London: Mercury Books, 2000).

90 A. Joshi, *The Influence of Organizational Demography on the External Networking Behavior of Teams," Academ)' of Manageme,u Review, July 2006, pp. 583- 595.

91 A. Joshi and H. Roh, *The Role of Conte>.~ in Work Team Diversity Research: A Meta-analytic Review,• Academy of Manageme11t Joumal 52, no. 3 (2009), pp. 599- 627; S. K. Horwitz a nd I. B. Horwitz, *The Effects of Team Diversity on Team Outcomes: A Meta-analytic Review of Team Demography,· Joumal of Management 33, no. 6 (2007), pp. 987- 1015; and S. T. Bell, A. J. Villado, M.A. Lukasik, L. Belau, and A. L Briggs, "Getting Specific about Demographic Diversity Variable and Team Performance Relationship.<: A Meta- analysis: Journal of Management 37, no. 3 (2011), pp. 709-743.

92 S. J. Shin a nd J. Zho u, "Wh en Is Educational Specialization Heterogeneity Related to Creativity in Research and Development Teams? Tra nsformatio nal Leadership as a Moderator." Jounial of Applied PS)'cl1ology 92, no. 6 (2007), pp. I 709- 1721 ; and K. J. Klein, A. P. Knight, J. C. Ziegert, B. C. Lim, and J. L. Saltz, *When Tea m Members' Values Differ: T he Moderating Ro le of Team Leadership," Organizntional Behavior and Human Decision Processes 114, no. 1 (2011 ), pp. 25- 36.

93 J. Shin, T. Kim, J. Lee, and L. Bian, "Cognitive Team Diversity a nd Individual Team Member Creativity: A Cross-Level Interaction,* Academ)' of Manageme11t Joumal 55, no. 1 (2012), pp. 197- 212.

94 W. E. \.Vatson, K. Ku mar, a nd L. K. Mich aelsen, "Cultural Divers ity's Impact o n Interaction Process and Performa nce: Compari ng Homogeneous and Diverse Task C roups," Academy of Manageme11t Journal, June 1993, pp. 590- 602; P. C. Earley and E. Mo.<akowski, "Creating Hybrid Team Cultures: An Empirical Test of Transnational Team Functioning," Academy of Managemetlt Joumal, February 2000, pp. 26- 49; and S. Mohammed and L. C. Angell, "Surface- and Deep-Level Diversity in Workgroups: Examining the Moderating Effects of Tea m O rientation a nd Team Proces., o n Relationship Conflict,· Joumal of Organizational Behavior, December 2004, pp. 1015- 1039.

95 Y. F. Gu illa ume, D. va n Knippenberg, and F. C. Brodebeck, "Nothing Succeeds Like Moderation: A Social Self-Regulation Perspective o n Cultural Dissimilarity and Performance,• Academy ofManageme11tJ011mal 57, no. 5 (2014), pp. 1284- 1308.

96 D. Coutu, *\.Vhy Teams Don't \<\fork,• Haroard Business Review, May 2009, pp. 99- JOS. The evidence in this section is described in L. Thompson, Making 1he Team (Upper Saddle River, NJ: Prentice Hall, 2000), pp. 65-67. See also L. A. Curra!, R. H. Forrester, and J. F. Dawson, "It's What You Do and th e \.Vay That You Do It: Team Task, Team Size, and Innovation-Related Croup Processes,• European Joumal of Work & Organizational Ps)'Cliology 10, no. 2 (June 2001), pp. 187- 204; R. C. Liden, S. J. Wayne, and R. A. Jaworski, "Social Loafing: A Field Investigation,* Joun,al of Management 30, no. 2 (2004 ), pp. 285-304; and J. A. \.Vagner, ' Stud ies of Individualism- Collectivism: Effects on Cooperation in Croups,* Academy of Management Joumal 38, no. 1 (February 1995), pp. 152- 172.

97 R. Karlgaard, *Think (Really!) Small,* Forbes, April 13, 2015, p. 32.

98 R. Karlgaard, *Think (Really!) Small: Forbes, April 13, 2015, p. 32.

99 R. Karlgaard, *Think (Really!) Small,* Forbes, April 13, 201 5, p. 32.

100 "Is Your Tea m Too Big? Too Small? What's the Right Number?* Knowledge@Wharton, June 14, 2006, pp. 1-5; see also A. M. Carton a nd J. N. Cummings, *A Theory of Subgroups in \<\fork Tea ms," Academ)' of Management Review 3 7, no. 3 (2012), pp. 441- 470.

101 D. E. Hyatt and T. M. Ruddy, "An Examination of the Relationship between Work Group Characteristic.Ii and Performance: O nce More into the Breech,* Persomiel PS)'clwlogy, Autumn 1997, p. 555; and J. D. Shaw, M. K. Duffy, a nd E. M. Sta rk, ' Interdependence and Preference for Group Work: Main and Congruence Effects o n the Satisfaction and Performance of Group Members,• Joumal of Management 26, no. 2 (2000), pp. 259- 279.

102 J. A. LePine, R. F. Piccolo, C. L. Jackson, J. E. Mathieu, and J. R. Saul, "A Meta. analysis of Teamwork Processes: Tests of a Multidi mens io na l Model and Rela tio nsh ips w ith Tea m Effectivenes., Criteria,• Personnel Psydwlogy61 (2008), pp. 273- 307.

103 J. F. Dovid io, "Bridging lntragro up Processes and Intergro up Relations: Needing the Twain to Meet, • British Joumal of Social Ps)'chology 52, no. I (2013), pp. 1- 24; and J. Zhou, J. Dovidio, and E. Wang. •How Affectively-Based and Cognitively-Based Attitudes Drive Intergroup Behaviours: The Moderating Role of Affective. Cognitive Consistency; PloS ONE 8, no. 11 (2013), article e82JSO.

104 J. A. LePine, R. F. Piccolo, C. L Jackson, J. E. Mathieu, and J. R. Sau l, "A Meta. analysis o f Teamwork rrocesses: Tests of a Multid imens ional Mode l a nd Re lat io nsh ips w ith Tea m Effectiveness Criteria: Personnel Psychology 61 (2008), pp. 273- 307; and J. E. Math ieu and T. L. Rapp, •Laying the Foundation for Successful Team Performance Trajectories: The Roles of Team Charters and Performance Strategies,• Joumal of Applied Psyc!wlogy 94, no. I (2009), pp. 90- 103.

105 M. Corrin, "The Women Behind Freshii's Fast Growth,• Fresh ii, March 8, 2017.

106 J. E. Mathieu and W. Schulze, "The Influence o f Team Knowledge and Forma l Pl ans o n Ep isod ic Team Process- Pe rforma nce Relationships,• Academy of Management Joumal 49, no. 3 (2006), pp. 605- 619.

107 A. N. Pieterse, D. van Kn ippenberg, and W. P. va n Ginkel, "' Diversity in Coa l Orie ntation, Team Reflexivity, and Tea m Performance," Organizatio,ial Beliavior and Human Decision Processes 114, no. 2 (2011), pp. 153- 164.

108 A. C urtner, F. Tscha n, N. K. Semmer, and C. Nagele, "Getting C roups to Develop Good Strategies: Effects of Reflexivity Interventions on Team Process, Team Performance, and Shared Mental Models," Orgmiizational Behavior and Human Decision Processes 102 (2007), pp. 127- 142; M. C. Sch ippers, D. N. Den Hartog, and P. L. Koopman, "Reflexivity in Teams: A Measure a nd Correlates,· Applied Psychology: An International Review 56, no. 2 (2007), pp. 189- 211; and C. S. Burke, K. C. Stag), E. Salas, L. Pierce, and D. Kenda ll, · understand ing Team Adaptation: A Conceptual Analysis and Model,· Joumal of Applied Psrchology 91, no. 6 (2006), pp. 1189- 1207.

109 A. N. Pieterse, D. van Knippenberg, and W. P. van Ginkel, •Diversity in Coal Orientation, Team Reflexivity, and Team Performance," Organizational Behavior and Human Decision Processes 11 4, no. 2 (2011 ), pp. J 53-164.

no See R. P. DeShon, S. W. J. Kozlowski, A. M. Schmidt, K. R. Milner, and D. Wiechmann, "A Multiple-Coal, Multilevel Model of Feedback Effects o n the Regulatio n of Individual and Team Performance: Journal of Applied Psychology, December 2004, pp. 1035- 1056.

111 K. Tasa, S. Taggar, and C. H. Seijts, "1he Development of Collective Efficacy in Teams: A Multilevel and Longitudinal Perspective; Joumal of Applied Psychology 92, no. I (2007), pp. 17-27; D. I. Ju ng a nd J. J. Sosik, ·cro up Potency a nd Collective Efficacy: Examining Their Predictive Validity, Level o f Analysis, and Effects of Performance Feedback on Future C roup Performance,• Group & Organizntion Management, September 2003, pp. 366- 391; and R.R. Hirschfeld and J.B. Bemerth, "Mental Efficacy and Physical Efficacy at the Team Level: Inputs and Outcomes among Newly Formed Action Teams: Joun1al of Applied Psychology 93, no. 6 (2008), pp. 1429- 1437.

ll2 A. VJ. Richter, C. Hi rst, D. van Knippenberg. and M. Baer, ·creative Self-Efficacy and Individual Creativity in Team Contexts: Cross- Level Interactions with Team Informational Resourc~." Joun1al of Applied Ps)'chology 97, no. 6 (2012), pp. 1282- 1290.

ll3 N. Ellemers, E. Sleebos, D. Stam, a nd D. de Gilder, •Feel ing Included and Valued: How Perceived Respect Affects Positive Team

End no tes 577

Identity a nd Willingness to Invest in the Team,• British Joumal of Management 24 (2013), pp. 21- 37.

ll4 T. A. De Vries, F. Wa lter, C. S. Van Der Vegt, a nd P. J. M. D. Esse.ns, •Antecedents of Ind ividuals' lnterteam Coord ination: Broad Functional Experiences as a Mixed Blessing; Academy of Management Journal 57, no. 5 (2014), pp. 1334- 1359.

115 S. Chang. L. Jia, R. Takeuchi, a nd Y. Cai, "Do High-Commitment Work Systems Affect Creativity? A Multilevel Combinational Approach to Employee Creativity,• Joumal of Applied Psychology 99, no. 4 (2014), pp. 665- 680.

ll6 S. Moh ammed, L. Ferza nd i, a nd K. Ha milto n, •Metaphor No More: A JS-Yea r Review of the Team Mental Model Construct: Joumal of Management 36, no. 4 (2010), pp. 876- 910.

ll7 A. P. J. Ellis, •system Breakdown: The Ro le o f Mental Models and Transactive Memory on the Relationships between Acute Stress and Team Performance,.. Academy of Mmiagement Jounial 49, no. 3 (2006), pp. 576-589.

U S L. A. DeCh urch and J. R. Mesmer-Magn us, •The Cogn itive Underpinnings of Effective Teamwork: A Meta-analysis,• )oumal of Applied Ps)'chology 95, no. I (2010), pp. 32-53.

119 S. VJ. J. Kozlowski and D. R. llgen, •Enhancing the Effectivenes., of Work Croups and Teams,• Psrchological Science in the Public Interest (December 2006), pp. 77- 124; and B. D. Edwa rds, E. A. Day, Vv. Arthur Jr., and S. T. Bell, •Relationships among Team Ability Composition, Tea m Mental Models, and Team Performance,"

Joumal of Applied PsycholO!l)' 91, no. 3 (2006), pp. 727-736.

120 K. M. Eisenhardt, J. L. Kahwajy, and L. J. Bourgeois 111, "How Management Teams Can Have a Good Fight," Haroard Business Review, July- August 1997, p. 78.

121 J. Fa rh, C. Lee, and C. I. C. Farh, "Task Confl ict and Tea m Creativity: A Question of How Much and When,• Journal of Applied Psychology 95, no. 6 (2010), pp. 1173- 1180.

122 K. J. Behfar, R. S. Peterson, E. A. Mannix, and W. M. K. Trochim, "The Critical Ro le of Confl ict Resolution in Teams: A Close Look at the Links between Confl ict Type, Conflict Management Strategies, a nd Team Outcomes,• Joumal of Applied Psrchology 93, no. I (2008), pp. 170-188.

123 V. Conzalez-Roma and A. Hernandez, ·climate Uniformity: Its Influence o n Team Communication Quality, Task Confl ict, and Team Performance,• Journal of Applied Psyc!wlogy 99, no. 6 (2014 ), pp. 1042- 1058.

124 R. Kreitner and A. Kinicki, Organizntional Behavior, 6th ed. (New York: hw in, 2004), p. 460. Repri nted by permission of McGraw Hill Education.

125 K. Jeh n, •A Multi meth od Exam inat ion of the Benefits a nd Detrimen ts of l ntragroup Confl ict, " Admi,iistrative Scie,ice Quarterly, June J 995, pp. 256- 282.

126 K. H. Price, D. A. Harrison, and J. H. Cavin, "Withholding Inputs in Team Contexts: Member Composition, Interaction Processes, Eva luation Structu re, and Social Loafing.• Journal of Applied Psychology 91, no. 6 (2006), pp. J 375- 1384.

127 C. E. Naquin and R. 0. Tynan, "The Team Halo Effect: \.Vhy Teams Are Not Blamed for Their Failures,· Joumal of Applied Psrchology, April 2003, pp. 332- 340.

128 D. Brown, "Innovative H R Ineffective in Manufacturing Fi rms,"

Omadian HR Reporter, April 7, 2003, pp. 1- 2.

12.9 E. R. Crawford and J. A. Le Pi ne, •A Co nfigura l Theory of Team Processes: Accou nting for the Structure ofTaskwork and Teamwork," Academ)' of Aif.anagement Review, January 2013, pp. 32-48.

130 W. E. Watson, K. Ku mar, and L. K. Mich aelsen, "Cu ltural Diversity's I mpact on Interaction Process and Performance:

Comparing Homogeneous and Diverse Task Groups," Academ)' of Management Journal, June 1993, pp. 590-602; P. C. Earley and

578 Endnotes

E. Mosakowski, ' Creating Hybrid Team Cultures: An Em pirical Te.'i't of Transnational Team Functioning." Arodemyof Management Journal, Feb ruary 2000, pp. 26- 49; and S. Moham med a nd L. C. Angell, "Surface- and Deep-Level Diversity in \.Vorkgroups: Exam ining the Moderati ng Effects of Team O rientatio n a nd Team Process on Relationship Conflict,• Journal of Organizational Behavior, December 2004, pp. 1015- 1039.

131 Y. F. Gui llaume, D. van Knippenberg, a nd F. C. Brodebeck, ' Nothi ng Succeeds Like Moderatio n: A Socia l Self-Regu lation Perspective o n Cultural Dissimilarity an d Perfonnance, " Amdemy of Management Journal 57, no. 5 (2014), pp. 1284- 1308.

132 D. F. Crown, "The Use of C roup and Croupcentric Individua l Coals for Cultura lly Heterogeneous and Ho mogeneous Task Croups: An Assessment of European \<\fork Teams,• Small Group Research 38, no. 4 (2007), pp. 489- 508.

133 Based on D. Man and S. S. K. Lam, 'The Effec:L< of Job Complexity and Autonomy on Cohe.'i'ive.nes.'i in Collectivist and Individualistic Work Croup.<: A Cro.<0-Cultural Analysis,· Journal of Organizational Behavior, December 2003, pp. 979- 1001.

134 S. Chang, L Jia, R. Takeuchi, and Y. Cai, ' Do High-Commitment Work Systems Affect Creativity? A Multilevel Combinatio nal Approach to Employee Creativity; Journal of Applied Ps)'cltology 99, no. 4 (2014), pp. 665- 680.

135 P. L Perrewe, K. L. Zellars, C. R. Ferris, A. M. Ro.s.,i, C. J. Kacmar, and D. A. Ralston, ' Neutralizing Job Stressors: Political Skill as an Antidote to the Dysfu nctional Consequences o f Role Conflict, · Academy of Management Journal, February 2004, pp. 141- 152.

136 Based on S. I. Tannenbaum, J. Mathieu, E. Salas, a nd D. Cohen, 'Teams Are Changing: Are Research and Practice Evolvi ng Fast Enough?" Industrial and Organizational Psychology 5 (2012) , pp. 2- 24; and R. Ashkenas, "How to Empower Your Team for Non-Negotiab le Re.,u lL, : Forbes, Apri l 24, 2013, http://www. forbes.com/sites/ rona,hkenas/ 2013/ 04/ 24/ how-to-empower-your- team-with-non-negotiable-results/ .

137 Based o n E. Bernstein, "Speaking Up Is Hard to Do: Researchers Expl ai n Why; Wall Street Journal, February 7, 2012, p. DI ; M. Kashtan, "Want Tea mwork? Promote Free Speech,• New York Times, April 13, 2014, p. 8; and H. Leroy, 8. Dierynck, F. Anseel, T. Si mo ns, J. R. Ha lbesleben, D. McCaughey, C. T. Savage, a nd L. Sels, ' Behavioral Integrity for Safety, Priority of Safety, Psychological Safety, and Patient Safety: A Team-Level Study,· Joumal of Applied Ps)'cltology, Novem ber 2012, pp. 1273- 1281.

138 M. A. Korsgaard, H. H. Brower, and S. \.V. Lester, ' It Isn' t Always Mutual: A Critical Review of Dyadic Trust,• Journal of Management 41, no. I (2014), pp. 47-70; R. L. Priem a nd P. C. Nystro m, ' Explo ring th e Dynamics of Workgroup Fractu re: Commo n Ground, Trust.with.Trepidation, and Warranted Distrust, " Journal of Management 40, no. 3 (2014), pp. 764- 795; and 'The Call of Malaysia's 'Conquerable' Mount KinabaJu; BBC, June 5, 2015, http://\\~vw.bbc.com/ news/world-asia-33020356.

139 Based on ROBB INS, STEPHEN P.; HUNSAKER, PH ILLIP L., T RAJNINC IN INTERPERSONALSKI LLS:TIPS FO R MANAGING PEOPLE ATWORK, 2nd Ed., <> 1996. Reprinted and Electronically reproduced by permission of Pearson Education, Inc., Upper Saddle River, New Jersey.

OB on the Edge:Trust

1 Based on 8. Maclellan, ' Turn ing 20, a nd Still a Young a nd Independent Agency," Environ ics, August 14, 2014, h ttp :// envi ronicspr.com/ us/ 20 I 4 / 08/ turning-20-sti I I -young-i ndepen- dent-agency/; "Stitches of Laughter Help Create light-Knit Team,• Globe and Mail, April 17, 2014; and C. Marr, ' Sabbaticals 800.<1 Job Satisfaction," Gazette (Montreal) , August 18, 2012, p. F14.

2 See, for example, K. T. Dirks and D. L. Ferrin, 'Trust in Leadership: Meta-analytic Findings and Implications for Research and Practice, · Joumal of Applied Psychology, August 2002, pp. 611 - 628; 8. McEvily,

V. Perro ne, A. Zaheer, guest editors, The special issue o n trust in

an o rganizational context, Organization Sciet1ce, January- February 2003; and R. Galford and A. S. Drapeau, Tlte Tmsted Leader (New York: Free Press, 2003).

F. K. Sonnenberg, 'Trust Me, Trust Me Not,• lndustry•,Veek, August 16, 1993, pp. 22 - 28; and L. T. Hosmer, "Trust: the Connecting Li nk between Organizational Theoiy and Philosophical Ethics: Academ)' of Manageme111 Review, April 1995, pp. 379- 403.

'A Lack of Trust and Confidence: Majority of Canadian Employees Don't Believe Their Senior Leaders,• CNW, news release, October 18, 2012, http://W\,~v.hrvoice.org/wp-content/ uploads/ 2013/05/ BABW-1 nfographic.jpg.

h ttp :// e n v iro n i cs p r. co m / thi n k ing/ the -enviro n i cs · communications·cantruSt·i ndex/.

J. Pollack, ' Do Your Em ployees Trust You? Behaviou r Survey Finds Lack of Trust in Senior Leaders as Top Reason for Quitting, · Telegraph-Journal, May 30, 2009, p. El .

D. M. Rousseau, S. 8. Sitkin, R. S. Burt, and C. Camerer, "Not So Different After All : A Cross-Discipline View o f Trust," Academy of Management Review, July J 998, pp. 393- 404; and J. A. Simpson, "Psychologica l Fou ndatio ns of Trust," Current Directions in Psychological Science 16, no. 5 (2007), pp. 264- 268.

8 See for instance, K. T. Dirks and D. L. Ferrin, 'Trust in Leadership: Meta-analytic Findings and Implication.< for Research and Practice,• Journal of Applied Ps)'chology 87, no. 4, (2002), pp. 611 - 628; D. I. Jung a nd 8. J. Avo lio, ' Open ing the Black Box: An Experimenta l Investigation of the Med iating Effects of Trust and Value Congruence o n Transformational a nd Transactio nal Leadership,· Joumal of Organizational Behavior, December 2000, pp. 949- 964; and A. Zacharatos, J. Barl ing, and R. D. Iverson, ' High-Performance \<\fork Systems and Occupatio nal Safety, · Joumal of Applied Psychology, January 2005, pp. 77- 93.

9 J. 8. Rotter, "Interpersonal Trust, Trustworthiness, and Gullibility," American Ps)'cltologist, January 1980, pp. 1- 7.

10 J. D. Lewis and A. Weigert, 'Trust as a Social Reality," Social Forces, June 1985, p. 970.

11 J. K. Rempel, J. G. Holmes, and M. P. Za nna, ' Trust in Close Relatio ns hips,• Journal of Persona/it)' and Social Ps )'cholog)', July 1985, p. 96.

12 C. M. Cra novetter, "Eco nomic Act io n and Social Structu re: The Problem o f Embeddedness," American Journal of Sociology, Novem ber 1985, p. 491 .

13 R. C. Mayer, J. H. Davis, and F. D. Schoorman, ' An Integrative Model of Organizational Trust,• Academy of Management Review, July 1995, p. 712.

14 C. Joh nson-George a nd \.V. Swap, ' Measu rement of Specific Interpersonal Trust: Constructio n and Validation of a Scale to Assess Trust in a Specific Other,• Joumal of Personality and Social Psychology, September J 982, p. 1306.

15 J. A. Colquitt, 8. A. Scott, and J. A. LePine, 'Trust, Trustworthiness, a nd Trust Pro pensity: A Meta-analytic Test of Their Uniq ue Relationsh ips with Risk Taking and Job Performance, • Journal of Applied Psychology 92, no. 4 (2007) , pp. 909- 927; and F. D. Schoorman, R. C. Mayer, and J. H. Davis, ' An Integrative Model of Organizational Trust: Pa<t, Present, and Future: Academy of Management Review 32, no. 2 (2007), pp. 344- 354.

16 Cited in D. Jones, "Do You Trust Your CEO?" USA Today, Februaiy 12, 2003, p. 78.

17 J. A. Si mpson, ' Foundatio ns of Interpersonal Trust: in Social Ps)'clwlog)': Handbook of Basic Principles, 2nd ed., ed . A. W. Krugla nski and E. T. Higgi ns (New York: Gu ilford, 2007), pp. 587- 607.

18 Th is sectio n is based on D. E. Za nd, Tlte Leadership Triad: Knowledge, Tmst, and Power (New York: Oxford University Press,

1997) , pp. 122- 134; and A. M. Zak, J. A. Cold, R. M. Ryckm an, a nd E. Lenney, "Asses.<ments of Trust in Intimate Relationships and the Self-Perception Process,• Journal of Social Psychology, April 1998, pp. 217-228.

19 D. L. Shapiro, A. D. Boss, S. Salas, S. Ta ngirala, and M. A. Von Clinow, "\.Vhen Are Transgressing Leaders Punitively Judged? An Emp irical Test: Jounwl of Applied Psychology 96, no. 2 (2011 ) , pp. 412- 422.

20 D. L. Ferrin , P. H. Kim, C. D. Cooper, and K. T. D irks, "Silence Speaks Volumes: The Effectiveness of Reticence in Comparison to Apo logy and De nial fo r Responding to In tegrity- and Competence-Based Trust Violations: Journal of Applied Psychology 92, no. 4 (2007), pp. 893- 908.

21 Based o n J. R. Detert a nd E. R. Burris, "Leadership Behavior and Em ployee Voice: Is the Door Really Open ?" Academy of Manage111ent Journal 50, no. 4 (2007), pp. 869- 884; a nd J. A. Colquitt, B. A. Scott, and J. A. LePine, "Trust, Trustworth iness, and Trust Propensity: A Meta. ana lytic Test of Thei r Un ique Relationships with Risk Taking and Job Performance,· Journal of Applied Psychology 92, no. 4 (2007), pp. 909- 927.

22 J. R. Detert and E. R. Burris, "Leadership Behavior and Employee Voice: Is the Door Really Open?" Academy of Management Journal 50, no. 4 (2007), pp. 869 - 884.

23 J. A. Colquitt, B. A. Scott, and J. A. LePine, "Trust, Trustworthiness, and T rust Propensity: A Meta-ana ly t ic Test of Thei r Un ique Relationships with Risk Taking and Job Performance,· Journal of Applied Psychology 92, no. 4 (2007) , pp. 909- 927.

24 M. E. Schweitzer, J. C. Hershey, and E. T. Bradlow, "Promises and Lies: ~toring Violated Trust," Orgmiizational Behavior and Human Decision Processes 101 (2006), pp. 1- 19.

25 B. A. De Jong a nd T. 0. M. Elfring. "How Does Trust Affect the Perforrnance of Ongoing Teams? The Mediating Role of Reflexivity, Monito ring. and Effort, " Acnde111y of Manage111ent Journal 53, no. 3 (2010), pp. 535-549.

26 H. Zhao, S. J. \.Vayne, B. C. Clibkowski, a nd J. Bravo, "The Impact of Psychological Contract Breach o n Work-Related Outcomes: A Meta-ana lysis: Personnel Psyclwlogy 60 (2007), pp. 647-680.

27 K. T. Dirks and D. L. Ferrin, "Trust in Leadership: Meta-analytic Fi nd ings and Implications for O rganizational Research,• Journal of Applied Psycholog,• 87 (2002), pp. 611 - 628.

28 B. C roysberg and M. Sl ind, "Leadership Is a Co nversation,· Harvard Business Review, June 2012, pp. 76- 84.

29 Adapted from J. OToole and W. Bennis, "What's Needed Next: A Culture of Candor,• Harvard Business Review, June 2009, pp. 54- 61.

30 P. J. Zak, "The Neuroscience of Trust," Harvard Business Review, January- February 2017, pp. 84- 90.

31 K. T. Dirks, "Trust in Leadership and Team Perfo rrnance: Evidence from NCAA Basketball: Journal of Applied Psycl1olog,• 85 (2000), pp. 1004- 1012.

32 Based on P. J. Zak, 'The Neuroscience Of Trust,• Harvard Business Review, January- February 2017, pp. 84- 90.

33 B. A. De Jong a nd T. 0. M. Elfring. "How Does Trust Affect the Perforrnance of Ongoing Teams? The Mediating Role of Reflexivity, Monito ring. and Effort, · Acade111y of Manage111ent Journal 53, no. 3 (2010), pp. 535-549.

34 Adapted from R. M. Kra mer, "Rethinking Trust," Harvard Business Review, June 2009, p. 71.

35 C. W. Langfred, "Too Much of a Good Thing? Negative Effects of High Trust and Ind ividual Autonomy in Self-Managing Teams,· Academy of Manage111ent Journal 4 7, no. 3 (June 2004), pp. 385-399.

36 N. Klein and H. Zhou, "Their Pa nts Aren' t on Fi re," New York Ti111es, March 25, 2014, p. 03.

37 S. D. Levitt and S. J. Dubner, ' Traponomics, • Wall Street Journal, May 10- 11 , 2014, pp. Cl, C2.

End notes 579

38 R. M. Kramer, "Rethinking Trust," Harvard Business Review, June 2009, p. 77 .

Chapter 7

1 Opening vignette based on h ttp://www.busines.,insider.com/slack- ceO·Stewart·butte.rfieJd. inte.rview.2015·4; S. Steven.~on, .. Stewart Butterfield , Em ail Killer," Wall Street Journal, November 4 , 2015, h ttps://www.wsj.com/a rt ides/ slack-ceo-stewart-butterfield-o n- changing-the-way-we-work-1446689564; J. Bercovici, "Slack Is Our Company of the Year. Here's \.Vhy Everybody's Talking about 11: l11c., December 2015/Ja nuary 2016 , https://www.i nc.com/ magazine/ 201512/ jeff-bercovici/s lack-co mpany-of-the-year-201 5. html; and A. Konrad, "Slack Moves Its App Sto re Front and Center, Backs Seven More Startups in Pla tform Push," Forbes, July 11 , 2017, https://www.forbes.com/sites/ alexkonrad/ 2017/07/ 11/slack- moves-app-store-invests-more-for-pla tforrn/ #6588a2bf73ab.

2 "Carle ton Study Fi nds People Spending a Third of Job lime o n Email; Carleton Newsroom, April 20, 2017, http://newsroom . carleton.ca/ 2017 / 04/ 20/ca rleton-study-fi nds-people-spendi ng- th i rd -j ob-time-emai I/ .

3 A. Tenhiaelae and F. Salvador, "Looking Ins ide G litch Mitigation Capability: The Effect of lntraorganizational Communicat ion Channels," Decision Sciences 45, no. 3 (2014), pp. 437-466.

4 L. A. Vslithers, and L. L. Vernon, "To Err Is Human : Em barras.,ment, Attachment, and Communication Apprehension,,. Personality and Individual Differences 40, no. I (2006), pp. 99- 110.

5 See, for instance, S. K. Opt a nd D. A. Loffredo, ' Rethinking Communica tion Apprehe nsion: A Myers .Briggs Perspective:,,. Journal of Psychology, September 2000, pp. 556-570; and B. D. Blume, G. F. Dreher, and T. T. Baldwin, "Examining the EffecL, of C:Ommunication Apprehen.~ion within Assessment Centres,,. Journal of Occupatio11al a11d Orga11izatio11al Psychology 83, no. 3 (2010), pp. 663- 671.

6 See L K. Trevino, J. Web.,ter, and E.W. Stein, "Making Connections:

Complementary lnfluenc~ on Communication Media Choices, Attitudes, and Use, · Organizntio11 Science, March - April 2000, pp. 163- 182; and N. Kock, 'The Psychobio logical Model: Towards a New Theory of Computer-Mediated Communication Based on Darwinian Evolution," Organization Science 15, no. 3 (May- June 2004), pp. 327-348.

7 D. K. Denton, ' Engaging Your Employees in limes of Uncertainty, •

International Journal of Productivity and Quality Manage111e11t 7, no. 2 (2011 ), pp. 202- 208.

8 Vignette based o n S. Niedoba, ' How CANA Croup Focused on Communication to Build a Stronger Tea m,,. Canadian Business, Decem ber 28, 2016, http://\\~vw.canadianbusiness.com/ lisLs-and- rankings/ best-m anaged-companies/cana-group/ .

9 S. Niedoba, ' How CANA Group Focused on Communication to Build a Stronger Team,,. Canadia,i Business, December 28, 2016, http://www.canadianbusiness.com/ 1 ists-and-ranki ngsfbest- ma naged-companies/ cana-group/ .

10 Vignette based o n A. Scott, "How Stewa rt Butterfield Built a

Billion-Dollar Compa ny in Eight Months: Canadian Business, January 5, 201 5, http://www.canadianbusiness.com/ innovation/ stewa rt· butte rfi e Id -slack/.

11 K. SaviL,ky, B. Keysar, N. Epley, T. Carter, and A. Swanson, "The Closeness.Communication Bias: Increased Egocentrism among Friends versus Strangers,· Journal of Experime11tal Social Psychology 47, no. I (2011), pp. 269- 273.

12 D. Derks, D. van Duin, M. lims, and A. B. Baker, ' Smartphone Use and \<\fork- Home Interference: The Moderating Role of Social Norms and Employee Work Engagement,· Journal of Occupational and Orga11izntional Psychology 88, no. 1 (2015), pp. 155-177.

580 Endnotes

13 r. Briiiol, R. E. Petty, a nd J. Barden, "Happine.s.< versus Sad ness a< a Determina nt of Thought Confidence in Persuasion: A Self. Validation Analysis,• Journal of Perso11ality and Social Psychology 93, no. 5 (2007), pp. 711 - 727.

14 R. C. Sinclair, S. E. Moore, M. M. Mark, A. S. Soldat, and C. A. Lavis, " Incidental Moods, Source Likeabi lity, and Persuasion: Liking Motivates Message Elaboration in Happy People, · Q,g1titio11 a11d Emotion 24, no. 6 (2010), pp. 940- 961; and V. Griskevicius, M. N. Shiota, and S. L Neufeld, "Influence of Different Positive Emotions on Persuasion Processing: A Functional Evolutionary Approach,· Emotion JO, no. 2 (2010), pp. 190- 206.

15 J. Sandberg. "The Jargon Jumble, • Wall Streel Journal, October 24, 2006, p. Bl.

16 E. Vv. Morrison and F. J. Milliken, "Organizational Silence: A Barrier to Change and Development in a Pluralistic World,• Academ)' of Ma11ageme111 Review 25, no. 4 (2000), pp. 706-725; and B. E. Ashforth and V. Anand, "The Normalization of Corruption in Organizations,• Research in Organizatio11al Behavior25 (2003), pp. 1- 52.

17 F. J. Milliken, E. v,,1_ Morrison, and r. F. Hewlin, "An Exploratory Study of Employee S ilence: Issues That Employees Don't Communicate Upward a nd Why,· Journal of Manageme111 Studies 40, no. 6 (2003), pp. 1453- 1476.

18 S. Ta ngirala and R. Ramunujam, "Employee Silence on Critical Wo rk Issues: The Cross-Level Effects of Procedu ra l Justice Climate, • Personnel Psyc/1olog)' 61, no. I (2008), pp. 37- 68; and F. Bowen and K. Blackmon, "Spirals ofSilence:The Dynamic Effects of D iversity on Organizational Voice, " Journal of Manageme,11 Studies 40, no. 6 (2003), pp. 1393- 1417.

19 K. B. Serota, T. R. Levine, and F. J. Boster, "The Preva lence of Lying in America: Three Studies of Self-Reported Lies,· Human Co111mu11ica1io11 Research 36, no. I. (2010), pp. 2- 25.

20 B. M. DePaulo, D. A. Kashy, S. E. Kirkendol, M. M. V,,lyer, and J. A. Epstein, "Lying in Everyday Life, • Journal of Perso11ality and Social Psyclwlog)' 70, no. 5 ( 1996), pp. 979- 995; a nd C. E. Naguin, T. R. Kurtzberg, and L. Y. Belkin, "The Finer Po ints of Lying O nline: E-Mail versus Pen and Paper,• Journal of Applied Psyclwlogy 95, no. 2 (2010), pp. 387- 394.

21 A. Vrij, r. A. Granhag, and S. Porter, "Pitfalls and Opportunities in Nonverbal and Verbal Lie Detection,• Psychological Scie11ce in the Public fllteresl 11, no. 3 (2010), pp. 89- 121.

22 Vignette based on S. Stevenson, "Stewart Butterfield, Email Killer,• Wall Streel Journal, https://www.wsj.com/articles/slack-ceo-stewart- butterfield-on-changi ng-the-way-we-work-1446689564.

23 S. Jh un, Z.-T. Bae, and S.-Y. Rh ee, "Performa nce Cha nge of Ma nagers in Two Diffe rent Uses of Upwa rd Feedback: A Longitudinal Study in Korea," International Journal of Human Resource Manageme111 23, no. 20 (2012), pp. 4246- 4264; and J. W. Smither and A. G. Wa lker, "Are the Characteristics of Narrative Comments Related to Improvement in M ultirater Feedback Ratings over Time?* Journal of Applied Ps)'clwlogy 89, no. 3 (June 2004), pp. 575- 581.

24 r. Dvorak, "How Understanding the 'Why' of Decisions Matters, · Wall Street Journal, March 19, 2007, p. 83.

25 T. Neeley and r. Leonardi, ' Effective Managers Say the Same Thing Twice (or More): Harvard Business Review, May 2011, pp. 38- 39.

26 A. DiPaula, M. Bacica, and J. V,,linram, "To Be Believed Is to Be Heard, • Leadership, Sum mer 2014, http://sentisresearch.com/ wp-content/ uploads/ 2014/ 07 / BCH RMA-Summer-2014.pdf.

27 B. Ambl e, ' Ma nagers Igno ring th e People Who Matte r, • Management-issues.com, September 18, 2006, h ttp://www. management· issues.com/ news/ 35 9 3/ manages-igno ring-the- people-who-matter/ .

28 H. A. Richardson and S. G. Taylor, "Understanding Input Events: A Model of Employees' Responses to Requests for Their Input,· Academy of Management Review 37 (2012), pp. 4 71 - 491.

29 J. R. Detert and L. K. Trevino, "Speaking Up to Higher-Ups: How Supervisors and Skip-Level Leaders Influence Employee Voice: OrganiZ1Jtio1t Science 21. no. I (2010), pp. 249- 270.

30 E. Nichols, "Hyper-Speed Managers: HR Magazine, April 2007, pp. 107- 110.

31 R. Wa lker, "Decl ini ng a n Assignment, with Finesse: New York Times, August 24, 2014, p. 8.

32 See, for exa mple, N. B. Kurl and and L H. relied, ' PaS-<ing the Word: Toward a Model of Gossip and Power in the Workplace, • Academy of Managemelll Review, April 2000, pp. 428 - 438; a nd G. Michelson, A. van Jterson, and K. Wadd ington, ' Gossip in Organization.Ii: Contexts, Qmsequences, and Controversies," Croup and Orga11izatio1t Managemelll 35, no. 4 (2010), pp. 371- 390.

33 G. Van Hoye and F. Lievens, "Tapping the Grapevine: A Closer Look at \<\lord-of-Mouth as a Recruitment Sou rce, · Journal of Applied Psychology 94, no. 2 (2009), pp. 341- 352.

34 J. K. Bosson, A. B. Johnson, K. Niederhoffer, and v,,1_ B. Swann Jr., "Interpersonal Chemistiy through Negativity: Bonding by Sharing Negative Attitudes about Others.• Personal Relatio11ships 13 (2006), pp. 135- 150.

35 T. J. Grosser, V. Lopez-Kidwell, and G. Labianca, 'A Social Network Analysis of Po.,itive and Negative Gossip in O rganizational Life, • Group and Orga11izatio11 Ma11ageme111 35, no. 2 (2010), pp. 177-212.

36 R. Feintzeig. "The Boss's Next Demand: Make Lots of Friends,• Wall Street Journal, February 12, 2014, pp. Bl, 86.

37 R. E. Silverman, "A Victory for Small Office Talkers,• Wall Streel Journal, October 28, 2014, p. 02.

38 M. Feinberg, R. \.Vill er, J. Stellar, and D. Keltner, ' The Virtues of Gossip : Reputational Info rmation Sha ring as Prosocia l Beh avior,• Journal of Personality a11d Social Ps)'c/1ology 102 (2012), pp. 1015 - 1030.

39 L. Hi rsch horn, ' Ma naging Ru mo rs,· in C1111i11g Back, ed. L. Hirschhorn (Sa n Francisco: Jossey-Bass, 1983), pp. 54- 56; a nd D. K. Den to n, "Engaging You r Emp loyees in T imes of Uncertai nty: flltematio11al Jounial of Productivit)' and Quality Management 7, no. 2 (2011), pp. 202 - 208.

40 Vignette based o n J. Bercovici, "Slack Is Our Compa ny of th e Year. Here's \.Vhy Eveiybody's Talking About It", Inc., December 2015/ Januaiy 2016, https://www.inc.com/ magazine/ 201512/ jeff- bercovici/slack-co mpany-of-the-year-2015.html .

41 L. Dulye, ' Get Out of Your Office, · HR Magazi11e, July 2006, pp. 99- 101.

42 M. Mihelich, ' Bit by Bit: Stand-up Comedy as a Team-Building Exercise: \.Vorkforce Managemelll, Feb ruary 2013, p. J 6; and "Comedy Experience,· Peppercomm, accessed July 2, 2015, http:// peppercomm.com/services/comedy-experience.

43 A. Biyant, "Finding. and Owning. Their Voice, • New York Times, November 16, 2014, p. 6.

44 T. D. Maynes and r. M. Podsakoff, "Speaking More Broadly: An Examinatio n of the Nature. Antecedents, and Consequences of an Expanded Set of Employee Voice Behaviors,• Journal of Applied Psychology 99, no. 1 (2014), pp. 87- 112.

45 J. Lipman, 'A Gu ide for Men,· Wall Street Journal, December 13- 14, 2014, pp. Cl, C2.

46 S. Shellenbarger, "Help! I'm on a Conference Call: Wall Street Journal, February 26, 2014, pp. DI, 02.

47 S. Shellenbarger, "Help! I'm on a Conference Call: Wall Street Journal, February 26, 2014, pp. DI, 02.

48 r . A. Mueller and D. M. Oppenheimer, "The Pen Is Mightier Than the Keyboard: Advantages of Longhand over Laptop Note Taking. · Psychological Science 25, no. 6 (2014), pp. 1159- 1168.

49 N. Bilton, "Disruptions: Life's Too Short for So Much E-mail.• New York Times, Ju ly 8, 2012, h ttp:// b its.b logs. nytimes.

com/ 2012/ 07 / 08/ I i feO/o E20fc,80o/o99s-too-sho rt-f Or·SO• m uch-e· mail/; and "Carleton Study Finds People Spendi ng a Third of Job Time on Email," Carleto11 Newsroom, April 20, 201 7, http:// newsroom .ca rleton.ca/ 201 7 / 04 / 20/ carleton-study-fi nds-peopJe. spending-third-job-ti me-email/ .

50 G. J. Mark, S. Voida, a nd A. V. Cardello, "'A race Not Dictated by Electro ns': An Empi rical Study of \<\fork without E-mail,• Proceedings of lhe S/CCHI Conference on Human Factors in Comp11ti11g S)'stems, 2012, pp. 555- 564.

51 "Overloaded Canadians Trash 42% of All E-Mails: Study,· Ottawa Citize11, June 26, 2008, p. 05.

52 Based on A. Anwar, "V.'hen Long Distance Makes the Startup More Complicated," Natio11al Post, August 5, 2014, p. FP6; and A. Seale, "Slim Cut Media Proud of Its Dual Toronto-Paris Citizenship,· StartUp Torollto, November 8, 2016.

53 C. L.· L. Tan, "Mind Your E-mail Ma nners: No 'XOXO' or 'LO I..'. Allowed,· Wall Street Journal, April 21, 2015.

54 C. L.· L. Tan, "Mind Your E-mail Ma nners: No 'XOXO' or 'LO I..'. Allowed, · Wall Street Journal, April 21, 2015.

55 E. Bemstein, "The Miscommunicators, • Wall Street Journal, July 3, 2012, pp. DI, 0 3.

56 B. Roberts, "Social Media Gets Strategic,• HR Magazine, October 2012, pp. 30- 38.

57 "Number of Monthly Active Facebook Users Worldwide as of Jst Quarter 2015 (in Millions),• Statista/Facebook, acce.ssed July I, 201 5, h ttp:/ / www.statista.com/s tatistics/ 264810/ number-of- monthly-active-facebook-users-worldwide/ .

58 K. Wagner, "The \<\lo rld's To p CEOs Are Tweeting Mo re, Facebooking Less," Re/Code, May 17, 2015, http:// recode.net/ 2015/05/ J 7 / the-worlds-top-ceos-are-tweeting-more-facebooking- less/.

59 P. Mozur, J. Osawa, and N. Pu rnell, "Facebook and V.'haLsApp a Tough Sell in Asia," 11'all Street Journal, February 21, 2014, p. 84.

60 C. Smith, "By the Numbers: 125+ Amazing Linked In Statistics,· DMR, June 6, 2015, http://expandedramb lings.com/ index.php/ by-the-numbers-a-few-important-linkedin-stats/ .

61 K. Wagner, "The \<\lorld's To p CEOs Are Tweeting Mo re, Facebooking Less. · Re/ Code, May 17, 2015, h ttp ://recode. net/ 2015/ 05/ l 7 / th e-worlds-top-ceos-are-tweeting-more-face- booking-less/ .

62 "Number of Monthly Active Twitter Users \<\lorldwide from !st Quarter 2010 to 1st Quarter 2015 ( in Millions),· Statistaflivitter, accessed July I , 2015 http:/ fW\,~v.statista.com/ statistics/ 282087 / number.of.m o nth Jy.active· tw itter ·Users/ .

63 K. Wagner, "The Wo rld's Top CEOs Are Tweeting Mo re, Facebooking Less. · Re/ Code, May 17, 2015, h ttp ://recode. ne t/ 2015/ 05/ J 7 / the-wo rlds-top -ceos-a re-tweeting-mo re- facebooking-less/ .

64 P. Mozur, J. Osawa, and N. Pu rnell, "Facebook and V.'haLsApp a Tough Sell in Asia," \.Vall Street Journal, February 21, 2014, p. 84.

65 P. Mozur, J. Osawa, and N. Pu rnell, "Facebook and V.•haLsApp a Tough Sell in Asia," \.Vall Street Journal, February 21, 2014, p. 84.

66 0. Allen, "6 Stats You Should Know about Business Blogging in 2015, • HubSpot Biogs, March II, 2015, http://blog.hubspot.com/ marketing/business-bloggi ng-in-2015.

67 M. Richtel, "Lost in E-mail, Tech Finns Face Self-Made Beast, • New York Times, June 14, 2008, pp. Al, Al4; and M. Johnson, "Quelling Distraction,· HR Magazi11e, August 2008, pp. 43- 46.

68 L. Talley and S. Temple, "How Leaders Infl uence Followers through the Use of Nonverbal Communication,· Leadership & Orga11izatio11al Developmellt Journal 36, no. I (2015), pp. 69- 80.

69 C. K. Coman, •5 Body Language Tips to Increase You r Cu rb Appeal, · Forbes, March 4, 2013, http://"~'~v.forbes.com/ sites/

Endnotes 5 8 1

caro lki nseygo ma n/ 2013/ 03/ 14/ 5 -body-language-tips-to · increase-your-curb-appeal/ .

70 A. Metall inou, A. Katsa manis, a nd S. Narayanan, "Tracking Continuous Emotional Trends of Participants Du ring Affective Dyadic Interactions Using Body Language and Speech Information,• Image a11d Visio11 Om1puti11g, February 2013, pp. 137- 152.

71 J. Smith, " JO Nonverbal Cues Tha t Convey Con fidence a t \<\fork,· Forbes, March II , 2013, h ttp://www.forbes.com/s ites/ jacq uelynsmith/ 2013/ 03/ i l / JO-nonverbal-cues-th at-convey- confidence-at-work/ .

72 See E. T. Hall, Be)'o11d Culture (Garden City, NY: Anchor Press/ Doub leday, 1976); W. L. Ada ir, "Integrative Seq uences and Negotiation Outcome in Same· an d Mixed.Culture Negotiations," /11ternational Journal of Co11flict Manageme11t 14, no. 3-4 (2003), pp. 1359- 1392; v.1. L. Adair and J.M. Brett, "The Negotiation Dance: lime. Cul ture. and Behavioral Seque.nce.'i in Negotiation," OrganiZ1Jtio11 Science 16, no. I (2005), pp. 33- 51; E. Giebels and r. J. Taylor, "'Interaction Patterns in Crisis Negotiations: Persuasive ArgumenL< and Cultural Differences,• Journal of Applied Ps)'chologJ' 94, no. I (2009), pp. 5- 19; and M. G. Kittler, D. Rygl, a nd A. Mackinnon, "Beyond Culture or Beyond Control? Reviewing the Use of Hall's High-fl.ow-Context Concept,• /11tematio11al Journal of Cross·Culwral Ma11ageme11t 11, no. I (2011 ) , pp. 63- 82.

73 M. C. Hopson, T. Hart, and G. C. Bell, "Meeting in the Middle: Fred L. Casmir's Co ntributio ns to the Field o f lntercultural Communication," Inten1atio,ial Journal of fotercultural Relations, November 2012, pp. 789- 797.

74 M. C. Hopson, T. Hart, and G. C. Bell, "Meeting in the Middle: Fred L. Casmir's Co ntributio ns to the Field o f lntercultural Communication," Inten1atio,ial Journal of fotercultural Relations, November 2012, pp. 789- 797.

75 "Charting a New Course," Natio11al Post, February 4, 2014.

76 Based on S. F. Gale, "Policies Must Score a Mutual Li ke, • 'vVorkforce Ma11agemen1, August 2012; R. Huggins a nd S. Ward, "Countries with the Highest Percentage o f Adults \<\/ho Use Social Networking Sites,· USA Today, February 8, 2012, p. IA; A. L. Kavanaugh, E. A. Fox. S. D. Sheetz, S. Yang, L. T. Li, D. J. Soemaker, A. Natsev, and L. Xie, "Socia l Media Use by Government: From the Routine to the Critical," Co11enu11e,1t Information Quarterly, October 2012, pp. 480- 491; and S. Johnson, "Those Facebook Posts Could Cost You a Job," San Jose MercuT)' News, January 16, 2012, http://W\,~V. mercurynews.com/ busi ness/ ci_ 197544 51.

77 S. E. Ante, "Perilous Mix: Cloud, Devices from Home,• Wall Street Journal, February 20, 2014, p. 84; D. Derks a nd A. B. Bakker, "Smartphone Use, \<\fork- Home Interference, and Burnout: A Diary Study on the Role of Recovery,• Applied Psychology: A11 lr1ternatio11al Review 63, no. 3 (2014), pp. 411- 440; L. Duxbury, C. Higgins, R. Smart, and M. Stevenson, "Mobile Tech nology and Boundary Permeability,· British Journal of Ma11ageme11t 25 (2014), pp. 570- 588; E. Holmes, "When One Phone Isn' t Enough," Wall Street Joun,al, April 2, 2014, pp. DI , 02; C. Mims, "2014: The Year of Living Vulnerably,· Wall Street Journal, December 22, 2014, pp. BI, 82; L. Weber, "Leaving a Job? Better Watch Your Cellphone, • Wall Street Joun,al, January 22, 2014; and E. Yost, "Can an Employer Remotely V.'ipe an Employee's Cellphone?" HR Magaz.ine, July 2014, p. 19.

78 Based on B. Acohido, "Social-Med ia Tools Boost Productivity," USA Today, August 13, 2012, p. 18; H.Annabi andS. T. McGann, "Social Media as the Missing Li nks: Connecting Communities of Practice to Business Strategy,• Journal of OrganiZ1Jtio11al O,mputi11g a11d Electro11ic Commerce 23, no. 1- 2 (2013), pp. 56- 83; S. Dutta, "What's Your Personal Social Media Strategy,· Harvard Business Review, November 2010, pp. 127- 130; G. Connors, "10 Social Media Commandments for Employers," Workforce Management, February 2010, http://www.workforce.com/ a rticles/ JO-sociaJ. media-commandments-for-employers; and L. Kwoh and M. Korn,

582 Endnotes

' 140 Characters of Risk: CEOs o n Twitter: Wall Street Joumal, September 26, 2012, pp. B 1, 88.

79 Based on A. A. Buchko, K. J. Buchko, and J. M Meyer, "Is There Power in PowerPoint? A Field Test of the Efficacy of Power Po int o n Mem oiy and Recall of Religious Sennons, • Computers in Human Behavior, March 2012, pp. 688- 695; "Full Text of Iran's Proposals to Six World Powers in Moscow: FARS News Agenc)' (Teh ra n) , h t tp :// engl i sh .fa rs news. com/ news text. php? nn =9103 0854 86; and B. Parks, "'Death to PowerPoint," Bloomberg Businessweek, September 3 - 9, 2012, pp. 83- 85.

80 Based on S. r. Robbins and r. L Hunsaker, Training in Interpersonal Skills: T/Ps for Managing People at Work, 2nd ed. ( Upper Sadd le River, NJ: Prentice Ha ll, 1996), Chapter 3; a nd data in R. C. Husema n, J.M. Lahiff, and J.M. Penrose:, Business Ommmnication: Strategies and Skills (Chicago: Diyden Press, 1988), pp. 380, 425.

Chapter 8

1 Vignette based on "Cho meshi Acquitted: Read the Verdict and

Catch Up on What You Missed," Globe and Mail, Januaiy 5, 201 7, https://www.theglobeand mail.com/ news/ nationalfjian-ghomeshi/ a rticle284767J3/ ; J. Bradshaw and C. McArth ur, "Beh ind the CBCs Decision To Fi re Jia n Chomeshi, • Globe and Mail, October 31, 2014, https://www.theglobea nd m aii.com/ news/ national/ behi nd-the-cbcs-decision-to-fi re-ghomesh i/ a rticle2J 39699 8/ .

2 R. M. Kanter, "'Power Failure in Management Circuits," Harvard Business Review, July- August 1979, p. 65.

3 Based o n B. M. Bass, Bass & Stogdil/'s Handbook of Leadership, 3rd ed. (New York: Free Press, I 990).

4 B. Oc, M. R. Bashshur, and C. Moore, "Speaking Truth to Power: The Effect of Ca nd id Feedback on How Individuals with Power Allocate Resources,• Journal of Applied l's)'dwlogy JOO, no. 2 (2015), pp. 450- 463.

5 D. H. Gruenfelcl, M. E. lnesi, J.C. Magee, and A. D. Calin., ~)', ' Power and the Objectification of Social Targets,· Journal of Personality and Social Psycltology 95, no. 1 (2008), pp. 111- 127; A. D. Galin.,ky, J.C. Magee, D. H. Cruenfeld, J. A. \'lhitson, and K. A. Liljenquist, "Power Reduces th e Press of the Situatio n: Implications for Creat ivity, Conformi ty, a nd D issonance, · Journal of Personality and Social Ps)'chology 95, no. 6 (2008), pp. 1450- 1466; and J. C. Magee and C. A. Langner, "How Per.;onalized and Socialized Power Motivatio n Faci litate Antisocial and Prosocial Decision-Making, · Journal of Research in Personality 42, no. 6 (2008), pp. 1547- 1559.

6 G. A. Van Kleef, A. C. Ho man, C. Finkenauer, S. Gundemir, and E. Stamkou, ' Breaking the Rules to Rise to Power: How Nonn Violators Gain Power in the Eye.< of O ther.;,· Social PS)'c/1ological and Personality Science, January 26, 2011, published online before p rint, h ttp://selfteach ingre.,ources.pbworks.com/ f/ Brea king+ the+ Rules+to+ Rise:+to+Power+·+H ow+Norm +Violators+Cain+Power+ in+the+Eyes+of+O thers.pdf.

7 J. La m mers, D. A. Stapel, and A. Galinsky, "Power Increases Hypocrisy: Moralizing in Reasoning, lmmunity and Behavior," Ps)'clwlogical Scie11ce 21, no. 5 (2010), pp. 737-744.

8 Based o n E. lnesi, S. Botti, D. Dubois, D. D. Rucker, and A. D. Gal insky, "Power a nd Cho ice: Their Dynamic Interp lay in Q uenching the Thirst for Personal Cont rol, · Ps)'chological Science, June 2011 , published onl ine before p rin t; and Association for Psychologica l Science, "Power and Cho ice Are Interchangeable: It's All about Contro lling Your Life,• ScienceDai/y, April 28, 2011 , http://www.sciencedaily.com/ releases/ 201 !/ 04/ 1104 26111419 .h tm.

9 Vignette based o n "Jian Ghomeshi Earned A Loyal Following With

CBC's Q: Torstar News Service, October 26, 2014, h ttp://www. m etronews.ca/enterta inment/ 2014 / 10/ 2 7 / j ian-ghomesh i-earned- a-loyal-following-wi th-cbcs-q.h tml; and A. Humpries, ' T roubling and Disappointing': CBC 'Severing Ties' with Executives in Chomeshi Scandal,• National Post, April 16, 2015, http://nationalpo.st.

com/ news/ canada/ cbc.severing·ties--with·executives·in·gho meshi· scandal/ wcm/8005c6c8-ffa2-40ed-8686-fu I ec2171 f39.

10 E. Landells and S. L. Albrecht, "Organizational Po litical Climate: Shared Perceptions about the Building and Use of Power Bases,•

Human Resource Management Review 23, no. 4 (2013), pp. 357- 365; r. Rylander, "Coaches' Bases of Power: Developing Som e Init ial Knowledge of Athle tes' Compliance with Coaches in Team Sports,• Journal of Applied Sport PS)'Cltology 27, no. 1 (2015), pp. 110- 121; and C. Yuki, ' Use Power Effectively, · in Handbook of Principles of Organizational Behavior, ed. E. A. Locke ( Malden, MA: Blackwell, 2004), pp. 242- 247.

11 E. A. Ward, ' Social Power Bases of Managers: Emergence of a New Factor,• Journal of Social Ps)'clwlog)', February 2001, pp. 144- 14 7 .

12 S. R. G iessner a nd T. \'l. Schubert, ' H ig h in the H ierarchy: How Vertical Locatio n and Judgments of Leaders' rower Are Interrelated," OrganiZJ1tional Behavior and Human Decision Processes 104, no. I (2007), pp. 30- 44.

13 S. Milgram, Obedience to Alllhority (New York: Harper and Row, 197 4).

14 C. Yuki, H. Ki m, and C. M. Falbe, ' Antecedents of Influence O utco m es: Journal of Applied Psycltology 81, no . 3 ( 1996), pp. 309- 31 7.

15 r. r. Car.;on, K. D. Car.;on, and C. W. Roe, "Socia l Power Bases: A Meta.analytic Examination of Interrelationships and Outcomes," Journal of Applied Social Psychology 23, no. 14 (1993), pp. 1150- 1169.

16 C. M. Fa lbe a nd C . Yuki, ' Co nsequences for Manage rs of Using Single Tactics and Com binations of Tactics,• Academy of Management Journal 35 ( I 992), pp. 638- 652.

17 Cited in J. R. Ca rlson, D.S. Carlson, and L L. \.Vadsworth, 'The Relationship between I ndividual Powe r Moves a nd G roup Agreement Type: An Examinat io n a nd Model,· SAM Advanced Management Journal 65, no. 4 (2000), pp. 44- 51.

18 Vignette based o n J. Bradshaw a nd G. McArthu r, ' Beh ind the CBC's Decision To Fire Jian Ghomesh i, • Globe and Mail, October 31, 2014, hups://www.theglobeandmai l.com/ news/ nat ional/ beh ind · l he-cbcs-decision · lO· fi re-g homesh i/ a rticl e2 J 3 9 6 99 8 /; and S. Houpt, "CBC Memo: Evidence of 'Physica l lnjuiy to a \.Voman' Spurred Ghomeshi Firing, • Globe and Mail, October 31, 2014, https:/ f w,, ... v.theglobea nd m ai l.com/ news/ nationa l/ cbc- fi red -gh o m esh i -after -seeing-g raph ic-evi dence-o f ·physical· injury· to-a-woman-memo/ article2141283 9/ .

19 R. E. Sturm a nd J. Antonakis, ' Interpersonal Power: A Review, Critique, and Research Agenda: Journal of Management 41, no. 1 (2015), pp. 136- 163.

2 0 Thanks are due to an anonymo us reviewer for supply ing th is in.,ight.

21 M. C. J. Can ie ls and A. Roeleveld, "Power and Dependence rerspectives on Outsourcing Decisions," European Mmiagement Journal 27, no. 6 (2009), pp. 402- 417; and R.·J. Bryan, D. Kim, and R. S. Sinkovics, "Drivers and Perform ance Outcome.< of Supplier Innovation Generation in Customer.Supplier Relationships: The Role of Power-Dependence,• Decision Sciences, 2012, pp. 1003- 1038.

22 See, for exam ple, D. M. Cable and T. A. Judge, ' Managers' Upward Influence Tactic Strategies: The Ro le of Manager Personality and Supervisor Leadersh ip Style: Journal of Organizational Behavior 24, no. 2 (2003), pp. 197- 214; M. r. M. Chong, "In fl uence Behaviors and Orga nizationa l Commitment: A Comparative Study; Leaders/tip and Organization Development Journal 35, no. 1 (2014), pp. 54- 78; and C. Blickle, ' Influence Tactics Used

by Subordinates: An Em pirical Analysis of the Kipn is and Schmid t Sub_,cales; Psycltological Reports, February 2000, pp. 143- 154.

23 C. R. Ferris, W. A. Hochwarter, C. Doug las, F. R. Blass, R. W. Kolodinksy, and D. C. Treadway, ' Social In fluence Processes in O rgan izations a nd Human Resou rce Systems," in Research in Perso,rnel and Huma,1 Resources Mmiagement, vol. 21, ed. C. R.

Ferris and J. J. Manocchio (Oxford, UK: JAi Press/Elsevier, 2003), pp. 65- 127; a nd C. A. Higgins, T. A. Judge, and C. R. Ferris, "'Influence Tactics and V.'ork Outcomes: A Meta.analysis," Jounwl of OrganiZ1Jtional Behavior, March 2003, pp. 89- 106.

24 M. r. M. Chong, " In fl uence Behaviors a nd O rgan izational Commitment: A Comparative Study,• Leadership and OrganiZ1Jtion Developmellt Journal 35, no. I (2014), pp. 54- 78.

25 R. E. Petty and r. Brinol, "Persuasion: From Single to Multiple to MetaC.ognitive Processes," Perspectives on Psychological Science 3, no. 2 (2008), pp. 137- 147.

26 M. r. M. Chong, " Influence Behaviors a nd O rgan izational Commitment: A Comparative Study." Leadership and Organiznrion Development Journal 35, no. I (2014), pp. 54- 78.

27 M. r. M. Chong, " Influence Behaviors a nd O rgan izational Commitment: A Comparative Study,• Leadership and OrganiZ1Jtion Developmellt Journal 35, no. I (2014), pp. 54- 78.

28 0. Epitropaki and R. Martin, ·'Transformational.Transactional Leadership a nd Upward Influence: The Role of Relative Leader- Member Exchanges (RIMX) and Perceived Organizational Support eras): Leadership Quarterly 24, no. 2 (2013), pp. 299- 315.

29 A. W. Krugla nski, A. Pierro, and E.T. Higgi ns, "Regu latory Mode a nd Preferred Leadersh ip Styles: How Fit Increases Job Satisfaction,· Basic and Applied Social Psycholog)' 29, no. 2 (2007), pp. 137- 149; and A. Pierro, L Cicero, and B. H. Raven, "Motivated Complia nce with Bases of Social rower,· Journal of Applied Social Psyclwlog)' 38, no. 7 (2008), pp. 1921- 1944.

30 C. R. Ferris, D. C. Treadway, r. L. r errewe, R. L. Brouer, C. Douglas, a nd S. Lux, "Political Skill in O rga nizations: Journal of Management, Ju ne 2007, pp. 290- 320; K. J. Ha rr is, K. M. Kacmar, S. Zivnuska, and J. D. Shaw, "The Impact of Politica l Skill on Impression Management Effectiveness,• Journal of Applied Ps)'cholog)' 92, no. I (2007), pp. 278- 285; W. A. Hochwarter, C. R. Ferris, M. B. Cavin, r. L. rerrewe, A. T. Hall, and D. D. Frink, "Political Skill as Neutra lizer of Felt Accountability- Job Tension Effect.< o n Job Performance Ratings: A Longitudi nal Investigation," Organizational Behavior mid Human Decision Processes 102 (2007), pp. 226- 239; a nd D. C. Treadway, C. R. Ferris, A. B. Duke, C. L Adams. and J. B. Tatcher, "The Moderating Role of Subordinate Political Ski ll on Supervisors' Impressions of Subordinate Ingratiation and Ratings of Subordinate Interpersonal Facil itation,• Journal of Applied Ps)'chology 92, no. 3 (2007), pp. 848- 855.

31 M. C. Andrews, K. M. Kacmar, and K. J. Harris, "Cot Political Ski ll? The Impact of Justice o n the Importa nce of Political Skills for Job Performa nce: Journal of Applied Psychology 94, no. 6 (2009), pp. 1427- 1437.

32 C. Anderson, S. E. Spata ro, and F. J. Flyn n, "Personal ity a nd Organizational Culture as Determinants of Influence," Journal of Applied Ps)'chology93, no. 3 (2008), pp. 702- 710.

33 Vignette based on J. Bradshaw and C. McArth ur, "Behi nd the CBCs Decision To Fi re Jian Chomeshi, • Globe and Mail, October 31, 2014, https://www.theglobea nd mail.com/ news/national/ beh i nd-the-cbcs-decision · to-fi re-gho mesh i/artide2J 3 96998/; and A. Hasham, "J ian Ghomeshi Apologizes In Court, Sex Assault Charge \,Vithdrawn," thestar.com, May II, 2016, https://W\,~v.the- star.com/news/crime/201 6/05/ J J /jia n-ghomeshi-trial .html.

34 R. Sutton, "How to Be a Good Bos., in a Bad Economy; Harvard Business Review, June 2009, pp. 42- 50.

35 D. Keltner, D. H. Cruenfelcl, and C. Anderson, · rower, Approach, and Inhibition,• Psychological Review 110, no. 2 (2003), pp. 265- 284.

36 Y. Cho and N. J. Fast, •rower, Defensive Den igration, and the Assuaging Effect of Gratitude Expression,• Journal of Experimental Social Psycl1ology 48 (2012), pp. 778- 782.

37 M. Pitesa and S. Thau, "Masters of the U niverse: How Power and Accou ntability Influence Self-Servi ng Decisions under Mora l

Endnotes 583

Hazard,• Journal of Applied PS)"Cholog)' 98 (2013), pp. 550- 558; and N. J. Fast, N. Sivanathan, D. D. Mayer, and A. D. Calio.sky, ·rower and Overconfident Decision.Making." Organizatio,ial Behavior and Human Decision Processes 117 (2012), pp. 249- 260.

J. K. Maner, M. T. Caillot, A. J. Menzel, a nd J. \.V. Ku nstma n, "Dispo.sitional Anxiety Blocks the l'sychological Effects of rower,• Personality and Social P5>"Ci10logy Bulletin 38 (2012), pp. J 383- 1395.

J. Tierney, "A Serving of Gratitude May Save the Day,· /11ternational New York Times, November 21, 2011, http://www.nyt imes. com/2011 / JI /2 2/science/a-servi ng-of-grat i tude-brings-healthy- dividends.html? _r=O.

N. J. Fast, N. Halevy, and A. D. Calinsky, "The Destructive Nature of rower without Status,· Journal of Experime111al Social Psycl1olog,, 48 (2012), pp. 391- 394.

T. Seppa la, J. Lipponen, A. Bardi, a nd A. Pi rttilii-Backman, "Change. Oriented Organizational Citizensh ip Behaviour: An Interactive Product of Open ness to Change Values, \.Vork Unit Identification, and Sense of rower,• Journal of Occupational and OrganiZ1Jtional Ps)'chology 85 (2012), pp. J 36- 155.

K. A. DeCelles, D. S. DeRue, J. D. Margolis, a nd T. L. Ceran ic, "Does rower Corrupt o r Enable? 'A'hen and 'A'hy rower Facilitates Self-Interested Behavior,· Journal of Applied Psychology 97 (2012), pp. 681- 689.

T. Lee a nd C. M. Brotheridge, "When the Prey Becomes the Predator. Bullying as Predictor of Reciprocal Bullying, Coping, and Well-Being, · working paper, University of Regina, 2005.

N. J. Fast and S. Chen, "When the Boss Feels Inadequate: rower, Incompetence, and Aggression," Psychological Science 20, no. II (2009), pp. 1406- 1413.

University of Cali fornia-Berkeley, "Bosses \.Vho Feel Inadequate Are More Li kely to Bully,· ScienceDail)', October JS, 2009, http:// W\,~v.sciencedai ly.com/ releases/ 2009/ J0/091014102209 .htm.

S.-C. Trepan ier, C. Fernet, and S. Austin, "A Longitud inal Investigation of Workplace Bullying, Basic Need Satisfaction, and Employee Functioning,• Journal of Occupational Health Psycl1olog,, 20, no. I (2015), pp. 105- 118.

Quebec Labour Standards, s. 81.18, "Psychological Harassment at Work."

Janze11 v. Platy E11terprises Ltd., I 1989] JO CHRR D/6205 SCC. K. Jiang, Y. Hong, r. F. McKay, D. R. Avery, D. C. \.Vilson, and S. D. Volpone, "Retaining Employee., through Anti-Sexual Harassment Practices: Exploring the Mediating Role of l'sychological Distress and Employee Engagement," Human Resource Management 54, no. I (2015), pp. 1- 21; J. \,V. Kunstman, "Sexual Overperception: Power, Mating Motives, a nd Biases in Social Judgment," Journal of Personality and Social Psychology 100, no. 2 (2011 ), pp. 282- 294; and J. C. Quick and M. A. Mcfadyen, "Sexual Harassment Have \.Ve Made Any Progress?" Journal of Occupational Health PS)"Chology 22, no. 3 (2017), pp. 286- 298.

F. Krings and S. Facch in, "Orga niza tional Justice and Men's Li kelihood to Sexually Harass: The Moderating Role of Sexism and Personality; Journal of Applied Psychology 94, no. 2 (2009), pp. 501- 510.

A. M. Dion is i, J. Ba rl ing, and K. E. Dup re, "Revis iting the Comparative Outcomes of Workplace Aggression a nd Sexual Harassment: Journal of Occupational Health Ps)'chology 17 (2012), pp. 398- 408.

M. B. Nielsen and S. Einarsen, "Prospective Relationships between \,Vorkplace Sexua l HaraS-<ment and Psycho logica l Distress,· Occupational Medicine 62 (2012), pp. 226- 228.

Based on "The Dos and Don't.< of Office Romances,· Toronto Star, August 2, 2012, http:I/W\,~v.thesta r.com/life/2012/08/02/ the_dos_a nd_donts_of_office_romances.html; H. Levitt, "What Ta ngled \.Vebs \.Ve Weave," Financial Post, May 23, 2012, http://

584 Endnotes

business. fi na nci a I post.co m/ 201 2/ 05/ 23 / what. tangled-webs- we-weave/ ; and Reichardt'. Kuntz. 12011 ] ONSC 7460 (CanLJ J) , para. 50.

54 ' Human Rights rolicies and r rocedures, rart JV,• Carleton.ca, accessed October 21, 2014, http://www.carleton.ca/ equity/ human- rights/ policy/ human-rights-policies-and-procedures-part-2/ .

55 M. Lalonde, ' Campus Culture: Crude, Degrading, Dangerous,· Montreal Gazette, December JO, 2016.

56 ' Western University Student Newspaper rens 'Guide on How to Sexually Harass' TA, (TWEETS),· Huffington Post, August 26, 2014, http ://www.huffingtonpost.ca/ 2014 / 08/ 2 6/ western-university· gazette-seduce-ta_n_5 718759 .html.

57 ' Building a Better Workforce: PROFIT, Februaty 16, 2011, http:// www.profitguide.com/ manage-grow/ huma n-resources/ building- a-better-workforce-30073.

58 Based on J. L. Berdahl and K. Aquino, "Sexual Behavior at Work: Fun o r Folly?' Journal of Applied Psychology 94, no. 1 (2009), pp. 34- 4 7; and C. Boyd, "The Debate over the r roh ib ition of Romance in the Workplace: Journal of Business Ethics 97, no. 2 (2010), pp. 325-338.

59 Th is is the definition given by R. Forrester, "Empowerment: Rejuvenating a Potent ldea," Academy of Managemem Executive, August 2000, pp. 67- 80.

60 R. E. Qui nn and G. M. Spreitzer, "The Road to Empowerment: Seven Questions Evety Leader Should Consider,• Organizational Dynamics, Autumn 1997, p. 38.

61 C. Argyris, ' Empowerment: The Emperor's New Clothes,· Harvard Business Review, May- June 1998.

62 J. Schaubroeck, J. R. Jones, and J. L. Xie, ' Individual Differences in Utilizi ng Contro l to Cope with Job Demands: EffecL, on Susceptibility to Infectious Disease, • Journal of Applied Ps)'chology 86, no. 2 (2001), pp. 265- 278.

63 S. Niedoba, ' How Singular Focus Made Steam Whistle Brewing One of Canada's Top Workplaces,· Canadian Business, April 20, 201 7, http://www.canadianbusi ness.com/ lists-and-ra nki ngs/ best·managed.companies/steam·wh istle.brewi ng/.

64 S. A. Culbert and J. J. McDonough, The Invisible H'ar: Pursuing Self· hllerest at Work (New York: \,Viley, 1980), p. 6.

65 H. Mintzberg, Power ill and Around Organizatiom (Englewood Cliffs, NJ: rrentice Hall, 1983), p. 26.

66 G. R. Ferris and W. A. Hochwarter, ' O rganizational rolitics, • in APA Handbook of Industrial and Organizational Psychology, vol. 3, ed. S. l.edeck (Wash ington, DC: American J'sychological Association, 2011 ), pp. 435- 459.

67 D. Farrell a nd J. C. retersen, · rauerns of rolitical Behavior in Organizations,• Academ)' of Manageme,11 Review, July 1982, p. 405. For a thoughtful analysis of the academic controversies underly- ing any definition of o rganizatio nal politics, see: A. Drory and T. Romm, "The Definitio n of O rga nizationa l rolitics: A Review,· Human Relations, November 1990, pp. 1133- 1154; and R. S. Crapanzano, K. M. Kacma r, and D. r. Boze.m an, "'Organizational rolitics, Justice, and Support: Their Difference., and Similarities,· in Orgmiizational Politics, Justice mid Support: Managing Social Climate at Work, ed . R. S. Crapanza no and K. M. Kacmar (Westport, CT: Quorum Books, 1995), pp. 1- 18.

68 D. A. Buchanan, 'You Stab My Back, I'll Stab Yours: Management Experience and Perceptions of Organization Political Behavior," British Journal of Ma11agement 19, no. 1 (2008), pp. 49- 64.

69 J. rfeffer, Power: Why Some People Have It-And Others 0011'1 (New York: Harper Collins, 2010).

70 G. R. Ferris, G. S. Russ, and r. M. Fandt, · rolitics in Organizations,· in Impression Management in Organizations, ed. R. A. Giacalone and r. Rosenfeld (Newbuty rark, CA: Sage, 1989), pp. 143- 170; and K. M. Kacmar, D. r. Bozeman, D. S. Ca rlson, and \,V. r . Anthony,

•An Examination of the Perceptions of Organizational Politics Model: Replication and Extension: Hu111a11 Relatiom, March 1999, pp. 383- 416.

71 K. M. Kacmar and R. A. Baron, "O rgan izational rol itics: The State of the Field, Links to Related rroces.ses, and an Agenda for Future Research," in Research in Persomiel and Huma,1 Resources Management, vol. 17, ed. G. R. Ferris ( Greenwich, CT: JAJ r ress, 1999); and M. Valle a nd L. A. Witt, "The Moderating Effect of Tea mwork rerceptions o n the Organiza tional rol itics-Job Satisfaction Relationship,• Journal of Social Psychology, June 2001 , pp. 379- 388.

72 S. Atyee, Z. Chen, a nd r . S. Budhwar, ' Exchange Fairness and Employee rerforma nce: An Exami nation of th e Relationship between O rgan izational Poli tics and Procedu ral Justice," Orgmiizntional Behavior & Human Decision Processes, May 2004, pp. 1- 14.

73 C. Kiewitz, V\I. A. Hochwarter, G. R. Ferris, a nd S. L. Castro, "The Role of rsychological Climate in Neutralizi ng the Effects of O rga nizatio nal rolitic.< o n Work Outcomes,• Journal of Applied Social Psychology, June 2002, pp. 1189- 1207; and J. M. L. roon, "Situational Antecedent'i and Outcomes of Organizational Politics rerceptions: Journal of Managerial Psychology 18, no. 2 (2003), pp. 138- 155.

74 K. M. Kacmar, D. r. Bozeman, D.S. Carlson, and W. r. Anthony, "An Examinatio n of the Perceptions of Organizational Politic.Ii Model: Human Relations 52, no. 3 (1999), p. 389.

75 K. M. Kacrnar, M. C. Andrews, K. J. Harris, and B. Tepper, ' Eth ica l Leadership and Subordi nate Outcome.<: The Mediating Role of O rgan izational rolitics a nd the Moderati ng Role of rolitical Skill: Journal of Business Et/tics 115, no. 1 (2013), pp. 33- 44.

76 K. M. Kacmar, D. G. Bach rach, K. J. Harris, and S. Zivnuska, ' Fosteri ng Good Cit izensh ip th rough Ethica l Leadersh ip : Exploring the Moderating Role of Gender a nd Organizatio nal ro litics, • Journal of Applied Ps)'chology 96 (2011 ), pp. 633- 642.

77 C. Homburg and A. Fuerst, ' See No Evil, Hear No Evil, Speak No Evil : A Study of Defensive Organizational Behavior towa rds Customer Complaints,• Journal of the Academy of Marketing Science 35, no. 4 (2007), pp. 523- 536.

78 See, for example, M. C. Bolino and W. H. Turnley, ' More Than One Way to Make an lmpres.,ion: Exploring r rofiles of Impression Management,' Journal of Managemellt 29, no. 2 (2003), pp. 141- 160; S. Zivnuska, K. M. Kacmar, L. A. \.Vitt, D. S. Carlso n, and V. K. Bratton, .. Interactive Effects of Impression Ma nagement and O rgan izationa l rol itics on Job rerformance, • Journal of Organizational Behavior, August 2004, pp. 627- 640; a nd M. C. Bolino, K. M. Kacrnar, \.V. H. Turnley, and J. B. Gilstrap, 'A Multi· Level Review of Impression Management Motive.Ii and Behaviors," Journal of Management 34, no. 6 (2008), pp. !080- 1109.

79 D. J. Howard and R. A. Kerin, "Individual Differences in the Name Similarity Effect: The Role of Self-Monitoring. • Journal of /11dividual Differences 35, no. 2 (2014), pp. 111- 118.

80 Based o n M. Thompson, ' How to Work with Your Startup Frenemies, • Ve11t11reBeat, December 22, 2012, http://venturebeat. com/; and N. L Mead and J. K. Maner, "On Keeping Your Enemies Close: rowerful Leaders Seek rroximity to Jngroup rower Threats, • Joumal of Perso11ality and Social Ps)'chology 102 (2012), pp. 576- 591.

81 M. R. Leaty and R. M. Kowalski, ' Impressio n Management: A Litera ture Review and Two.Component Model, .. Ps)1chological Bulleti11, Januaty 1990, p. 40.

82 D. H. M. Chng. M. S. Rodgers, E. Shih, and X.-B. Song, "Leaders' Impression Management During Orga nizational Decl ine: The Roles of rublicity, Image Concerns, and Incentive Compensation,• Leaders/tip Quarter/)' 26, no. 2 (2015), pp. 270 - 285; and L. Uziel, "Life See ms Differe nt with You Aro und: Differential Shifu in Cogn itive Appra isal in the Mere rresence of O thers

for Neuroticism and lmpre.~~io n Management," Personality and /11dividual Differe11ces 73 (2015), pp. 39- 43.

83 J. Ham and R. Vonk, ' Impressions of Impression Management: Evidence of Spontaneous Suspicion of Ulterior Motivation," Journal of Experimental Social Psychology 47, no. 2 (2011 ), pp. 466- 471; a nd VJ. M. Bowler, J. R. B. Halbesleben, and J. R. B. Paul, 'If You' re Close with the Leader, You Must Be a Brownnose: The Role of Leader- Member Relationships in Follower, Leader, and Coworker Attributio ns of O rgan izationa l Cit izenship Behavior Motives," Human Resource Manageme,u Review 20, no. 4 (2010), pp. 309- 316.

84 J. R. B. Halbesleben, W. M. Bowler, M. C. Bolino, and W. H Turnley, "Organ izational Concern, rrosocia l Val ues, o r Impression Ma nage ment? How S upervisors Att ri bu te Motives to O rganizatio nal Citizensh ip Behavior: Joumal of Applied Social Psyclwlogy40, no. 6 (2010), pp. 1450- 1489.

85 G. Bl ickle, C. Diekm ann, P. B. Schneider, Y. Kahhofer, a nd J. K. Su mmers, "\+Vhen Modesty Wins: Impression Ma nagement th rough Modesty, Pol itical Skill, and Career Succes.,- A Two. Study Investigation,· European Journal of Work and Orga11izatio1tal Psyclwlogy, December I , 2012, pp. 899- 922.

86 A. P. J. Ellis, B. J. West, A. M. Ryan, and R. P. DeShon, "The Use of Impression Management Tactics in Structural Interviews: A Function of Q uest ion Type?" Journal of Applied Psychology, December 2002, pp. 1200- 1208.

87 C. K. Stevens a nd A. L. Kristof, 'Maki ng the Right Impression: A Field Study of Applicant Impression Managem ent during Job Interviews: Joumal of Applied Psychology 80 (1995), pp. 587- 606; L. A. McFarland, A. M. Ryan, and S. D. Kriska, ' Impression Management Use and Effectiveness acro.~s Asse.~sment Methods," Journal of Management 29, no. 5 (2003), pp. 641- 661; C. A. H iggins and T. A. Judge, "The Effect of Applicant Influence Tactics on Recruiter Perceptions of Fit and Hiri ng Recommendations: A Field Study,· Joumal of Applied Psychology 89, no. 4 (2004), pp. 622- 632; a nd W. C. Tsa i, C. C. Chen, a nd S. F. Ch iu, "Exploring Bou ndaries of the Effects of Applicant Imp ression Management Tactics in Job Interviews," Joun1al of Management, February 2005, pp. 108- 125.

88 M. R. Barrick, 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 Perform ance,• Joumal of Applied Psychology 94, no. 6 (2009), pp. 1394- 1411.

89 E. Mollem an, B. Emans, and N. Turusbekova, "How to Control Self-Pro motio n a mong Performance-O riented Employees: The Roles of Task Clarity and Personalized Responsibility,• Perso1111el Review 41 (2012), pp. 88- 105.

90 K. J. Harris, K. M. Kacmar, S. Zivnuska, and J. D. Shaw, "The Impact of Pol itica l Skill o n Imp ression Ma nagement Effectiveness,· Journal of Applied Psychology 92, no. I (2007), pp. 278- 285; and D. C. Treadway, G. R. Ferris, A. B. Duke, G. L. Adams, and J. B. Thatcher, ,he Moderating Role of Subord inate Polit ical Skill o n Supervisors' Impressions of Subordinate Ingratiation and Ratings of Subord inate Interpersonal Facilitation,· Joumal of Applied Psyclwlogy 92, no. 3 (2007), pp. 848- 855.

91 J. D. Westphal and I. Stern, 'Flattery 'A'ill Get You Everywhere (Especially i f You Are a Male Caucasian): How Ingrat ia tion, Boardroom Behavior, and Demographic Minori ty Status Affect Additional Board Appointments of U.S. Companies,• Academy of Ma11ageme111 Journal 50, no. 2 (2007), pp. 267- 288.

92 Y. Liu, G. R. Ferris, J. Xu, B. A. Wei tz, and P. L. Perrewe, "When Ingratiation Backfires: The Role of Po litical Skill in the Ingratia tion- Inter n.sh ip Perform ance Relationship,· Academy of Ma11ageme111 Leaming a11d Education 13 (2014), pp. 569-586.

93 C. Ch en a nd M. Lin, ' The Effect of Applicant Im p ressio n Management Tactics o n Hi ring Recommendations: Cognitive and Affective Processes,· Applied Psychology: An /111ematio1tal Review

Endnotes 585

63, no. 4, (2014), pp. 698- 724; J. Levashina, C. J. Hartwell, F. P. Morgeson, and M. A. Campion, "The Structured Em ployment Interview: Narrative and Quantitative Review of the Research Literature,• Personnel PS)dwlogy, Spring 2014, pp. 241- 293; and M. Nemko, "The Effective, Eth ical, and Less Stressful Job In terview: Psychology Today, March 25, 2014, h ttps://www.psychologytoday. com/ blog/how -do-Ii f e/ 2015 03 / the-effect i ve-eth ica 1-and-less- stressfu 1-job-interview.

94 Based on A. Lavoie, "How to Get Rid of Toxic Office Politics,• Fast On1tpa1ty, Apri l 10, 2014, h ttp://www.fastcompany.com/3028856/ work-s m art/ how -to -make-office-pol it icking. a -lame-duck; and C. Conner, "Office Pol itics: Must You Play?" Forbes, April 14, 2013 , h ttp://www. fo rbes.co m /s ites/cherylsnappcon- ner/2013/04/ 14/office-politics-must-you-p lay-a-handbook-for- survivalsuccess/.

95 R. Westwood, "O rder of Ca nada Winner Lied about Ph.D, • Maclea11's, September 26, 2013, h ttp://www.macleans.ca/ general/an-o rder-of-lies/; and ' Louis La Pierre Stripped of O rder of Canada,· CBC News, June 13, 2014, http://W\,~v.cbc.ca/news/ ca nada/ new-b ru nsw ick/lou is- I a pierre-stri pped-o f -o rder -of. canada-1.2675141.

96 C. Robert, T. M. Probst, J. J. Martocch io, F. Drasgow, and J. J. Lawler, .. Empowerment and Continuous Improvement in the United States, Mexico, Poland, and India: Predicting Fit o n the Basis of the Dimensions of rower Distance and Individualism," Journal of Applied Psycl1olog,• 85 (2000), pp. 643- 658.

97 Vv. A. Randolph and M. Sash ki n, "Can Organ izational Empowerment Work in Mu ltinat ional Setti ngs?" Academy of Management Executive, February 2002, pp. 102- 115.

98 M. Gagne and D. Bh ave, "Autonomy in th e \,Vorkplace: An Essential Ingredient to Em ployee Engagem ent and Well-Being in Eve.ry Culture?" in Human Autonomy in Cross·Cultural Context: Perspectives on die Psycholog,• of Agency, Freedom, a11d \,\1ell·Being, ed. V. I. Chirkov, R. M. Rya n, and K. M. Sheldon (Berlin, Germa ny: Springer, 2011 ).

99 Concord ia University, "Freedom'sJtLstAnotherWord for Employee Satisfaction,· ScienceDaily, January 24, 2011, http://www.concordia.

ca/ cu news/mai n/ releases/20 J J /01/24 / freedoms-just -another. word-for-employee-satisfaction.h tml.

100 P. P. Fu and G. Yuki, ' Perceived Effectiveness of lnOuenceTactics in the United State., and China,· Leadership Quarterly, Summer 2000, pp. 251- 266; 0. Branzei, "Cultural Explanations of Individual rreferences for Influence Tactics in Cross. Cultural Encounters," /111ematio1tal Journal of Cross Cultural Management, August 2002, pp. 203- 218; G. Yuki, P. P. Fu, and R. McDonald, 'Cross-Cultura l Differences in Perceived Effectiveness of Influence Tactics for In itiating o r Resisting Change,• Applied Psyclwlogy: A11 h1tematio11al Revieu\ January 2003, pp. 66- 82; and P. P. Fu, T. K. Peng, J. C. Kennedy, a nd G. Yuki, "Examining the Preferences of Influence Tactics in Chinese Societies: A Comparison of Chinese Managers in Hong Ko ng, Taiwan, and Mai nland Ch ina: Orgatiizational Dynamics 33, no. I (2004), pp. 32- 46.

101 C. J. Torelli a nd S. Shavitt, 'Cultu re and Concepts of Power,• Journal of Personality and Social Psychology 99, no. 4 (2010), pp. 703-723.

102 E. Szabo, 'Meaning and Context of Participation in Five European Countries: Ma1tageme11t Decisio11 44, no. 2 (2006), pp. 276- 289.

103 J. L. T. Leong, M. H. Bond, and P. P. Fu, "Perceived Effectiveness of Influence Strategies in the United State., a nd Three Chinese Societies," Ituen1atio11al Joun1al of Cross Cultural Ma11ageme,1t, May 2006, pp. 101- 120.

104 Y. Miya moto and B. \.Vi lken, 'Cultura lly Contingent Situated Cognition: Influencing O ther People Fosters Anal}~ic Perception in the United States but Not in Japan,· Psyclwlogical Science 21, no. 11 (2010), pp. 1616 - 1622.

586 Endnotes

105 Based o n B. Burrough and B. McLean, •The Hun t for Steve Cohen,• Vanity Fair, June 2013, http://www.van ityfai r.com/ business/ 2013/ 06/steve-cohen-insider-trading-case; C. Anderson, R. \<\filler, G. J. Kilduff, and C. E. Brown, "The Origin., of Deference: When Do People Prefer Lower Status?" Joumal of Persona/ii)• and Social Psychology 102 (2012), pp. !077- 1088; C. Anderson, M. W. Kraus, A. D. Ga linsky, and D. Keltner, "The Local-Ladder Effect: Social Status and Subjective Well-Being, · Psychological Science 23, no. 7 (2012), pp. 764-771; S. Kennelly, ' Happiness Is About Respect, Not Riches: Greater Good, July 13, 2012, http:// grea tergood. berkeley. ed u/ a rti de/ i tern/ h app i ness_is_a bout_ respect_not_riches; and r. Lattman and B. rrotess, ·s 1.2 Billion Fine for Hedge Fund SAC Capita l in Insider Case: New York Times Dea/book, November 4, 2013, http://dealbook.nytimes. com/ 2013/ J J / 04/ sac-capita I-agrees-to-plead-gu i I ty-to-insider- tradi ng/? _r=O.

106 Based o n J. Sa ncto n, "Milgra m at McDona ld's,• Bloomberg Businessweek, September 2, 2012, pp. 74- 75; and A. Wolfson, .,Compliance' Re-Creates McDonald's Strip-Search O rdea l,· USA Today, September I , 2012, h ttp://usatoday30.usatoday. com/ news/ nation/ story/ 2012 -09-OJ / Compliance-strip-search- hoax/ 57509182/ 1.

107 Based on M. L. Tushma n, W. K. Smith, a nd A. Binns, •The Ambidextrous CEO; Harvard Business Review, June 2011 , pp. 74 - 79; and S. Bogan, •Find Your Focus, · Financial Plar111ing, February 2011, p. 72.

108 Based on M. G. Mcintyre, • o isgru ntlement Wo n' t Adva nce You r Ca reer,• Pittsburgh Post·Cautte, September 23, 2012; a nd S. Shellenbarger, "'A'hat to Do with a Workplace Whiner: Wall Street Jouma/, September 12, 2012, pp. DI, 03.

109 Based on S. r. Robbins and r. L Hunsaker, Training in /11terpersonal Skills: Tips for Managing People at Work, 2nd ed. (Upper Saddle River, NJ: Prentice Hall, 1996), pp. 131- 134.

Chapter 9

1 Vignette based on K. Owra m, "Canadian Auto Industry Faces Biggest Existential Th reat s ince 2009 Crise< As Labour Talks Begin,· Financial Post, August 8, 2016, http:/fbusines.,.fi nancialpost.com/ tra ns po rta ti on/ can ad i a n ·auto· i nd us try· faces-bi gge.'it .,exj s ten ti al· threat-since-2009-as-labour-talks-begin; and K. Owram, •General Motors of Canada Ltd, Union 'Mile.<Apart' as Labour Negotiations Begin, · Financial Post, August JO, 2016, http://b usiness. fi nancia I post.com/ tra nsportation/ general-motors-of -canada · ltd-union-miles-apart-as-labour-negotiations-begin.

2 See, for in.stance, D. Tjosvold, A. S. H. Wong, a nd N. Y. F. Chen, "'Constructively Managing Conflicts in Organizations," Amiual Review of Organizational Ps)1cl1ology and Organizational Behavior I (March 2014), pp. 545- 568; and M. A. Korsgaard, S. S. Jeong, D. M. Mahony, and A. H. Pitariu, •A Multilevel View of lntragroup Conflict,· Joumal of Management 34, no. 6 (2008), pp. 1222- 1252.

3 L. L. Putn am a nd M. S. Poole, •eonfl ict and Negotiation: in Handbook of Organizatio,ial Commw1ication: An Interdiscipli,iary Perspective, ed. F. M. Jablin, L. L. Putnam, K. H. Roberts, and L. \¥. Porter (Newbuiy Park, CA: Sage, 1987), pp. 549-599.

4 K. W. T ho mas, · con fl ict and Nego tiat ion Processes in Organiza tions," in Handbook of fodustrial a,id Organizational Psychology, 2nd ed., vol. 3, ed. M. D. Dunnette and L. M. Hough (Palo Alto, CA: Con.,ulting Psychologists Press. 1992), pp. 651-717.

5 F. R. C. de Wit, L. L. Greer, and K. A. Jeh n, "The Paradox of lntragroup Conflict: A Meta-analysis,• Joumal of Applied Psychology 97, no. 2 (2012), pp. 360- 390; a nd N. Ga mero, V. Gonza lez. Roma, and J. M. reir6, "The Influence of Intra-Team Confl ict o n Work Teams' Affective Cli mate: A Lo ngitudinal Study,· Joumal of Occupational a11d Organizatio11al Psychology 81, no. I (2008), pp. 47 - 69.

6 N. Ha levy, E. Y. Chou, and A. D. Ga linsky, • Exhausting o r Exhilarating? Conflict as Threat to Interests, Relatio n.sh ips a nd Identities,· Joun1al of Experimental Social Psychology 48 (2012), pp. 530-537.

7 F. R. C. de \¥i t, L. L. Greer, and K. A. Jehn, •The Paradox of lntragroup Conflict: A Meta-analysis,· Journal of Applied Psychology 97 (2012), pp. 360- 390.

8 J. Fa rh, C. Lee, and C. I. C. Farh, "Task Confl ict and Tea m Creativity: A Question of How Much and When: Joumal of Applied Psychology 95, no. 6 (20!0), pp. 11 73- 1180.

9 B. H. Bradley, A. C. Klotz, B. F. Postlethwaite, and K. G. Brown, •Ready to Rumble: How Team Personality Composition and Task Confl ict Interact to Imp rove Performa nce, • Journal of Applied Psychology98 (2013), pp. 385- 392.

10 B. H. Bradley. B. F. Postlethwaite, A. C. Klotz, M. R. Hamdani, and K. G. Brown, •Reaping the Benefits of Task Conflict in Team.<: The Critical Role of Team Psychological Safety Climate: Journal of Applied Psychology97 (2012), pp. 151- 158 .

11 S. Benard, · eohesio n from Confl ict: Doe., Intergroup Conflict Motiva te ln tragroup Norm Enforceme nt and Suppo rt fo r Centralized Leadership?" Social Psychology Quarterly 75 (2012), pp. !07- 130.

12 G. A. Van Kleef, \¥. Steine!, and A. C. Ho man, · o n Being Peripheral and raying Attention: r rototypicality and Information Processing in Intergroup Conflict,• Joumal of Applied Psychology 98 (2013), pp. 63-79.

13 R. S. Peterso n a nd K. J. Behfar, "The Dynamic Relationsh ip between Performance Feedback, Trust, and Conflict in Groups: A Longitudinal Study," OrganiZlltional Behavior and Human Decision Processes, September- November 2003, pp. 102- 112.

14 See K. A. Jeh n, "A Multi method Exami nation of the Benefit.< and Detriments of lntragroup Conflict," Admi,iistrarive Science Quarter/)\ June 1995, pp. 256- 282.

15 T. M. Glomb and H. Liao, • interpersonal Aggression in \'/ork Groups: Social Infl uence, Reciprocal, a nd Ind ivid ua l Effects, · Academy of Manageme11t Joumal 46, no. 4 (2003), pp. 486-496; and V. Venkatara mani and R. S. Dalal, "\¥ho Helps and \¥ho Harms? Relational Aspects of Interpersonal Helping and Harming in Organizations,• Joumal of Applied Psyclwlogy 92, no. 4 (2007), pp. 952 - 966.

16 R. Friedman, C. Anderson, J. Brett, M. Olekalns, N. Goates, a nd C. C. Lisco, "The ro.,itive and Negative Effec:L< of Anger on Dispute Resolution: Evidence from Electronica lly Mediated Disputes: Joumal of Applied Psychology, April 2004, pp. 369- 376.

17 J. S. Chun, and J. N. Choi, •Members' Needs, lntragroup Conflict, and Croup Performance, • Jou ma/ of Applied Psychology 99 (2014 ) , pp. 437- 450.

18 Vignette based o n .. Unifor Announces Tentative Deadli ne Dea l wi th GM to Ave rt St rike, • CBCNews, September 20, 2016, http://w,,~v.cbc.ca/ news/ busi ness/ uni for -tentati ve-dea J. gm-s trike-1.3770013; a nd General Motors of Canada Med ia Statement, 2016 Unifor Negotiations- September 20, 2016, http://media.gm.ca/ media/ca/en/gm/ home.detail.html/ content/ rages/ news/ ca/ en/ 201 6/ Sep/ 09 20 _MediaStatement. htm I.

19 D. Tjo.svold, · cooperative a nd Competitive Goa l Approach to Confl ict: Accomplishment< and Challenges; Applied Psychology: An llllemational Review 47, no. 3 ( 1998), pp. 285- 342.

20 K. \¥. T homas, · conflict a nd Negotiation Processes in O rga nizations,· in Ha11dbook of Industrial and Orga11izatio11al Psychology, 2nd ed., vol. 3, ed. M. D. Dunnette and L. M. Hough (Palo Alto, CA: Consulting Psychologists Press, J 992), pp. 651 - 717.

21 C. K. \¥. De Dreu, A. Evers, B. Beersma, E. S. Kluwer, and A. Nauta, •A T heory-Based Measure of Confl ict Management Stra tegie.< in the Workp lace,• Jou ma/ of Organizational Behavior 22, no. 6 (September 2001), pp. 645- 668. See also D. G. Pruitt and J.

Rubin, Social Conflicl: Escala1ion, Stalemale and Settlement (New York: Random House, 1986).

22 C. K. W. De Dreu, A. Evers, B. Beersma, E. S. Kluwer, and A. Nauta, 'A Theory-Based Measu re of Con flict Ma nagement Strategies in the Workplace, • Jo11rnal of Organizntional Behavior 22, no. 6 (September 2001 ), pp. 645- 668.

23 L.A. DeChurch, J. R. Me.<mer-Magnus, and D. Doty, "Moving beyond Relatio n.sh ip and Task Conflict: Toward a Process-State Perspective, • Jo11mal of Applied Psyclwlogy 98 (2013), pp. 559- 578.

24 R. A. Baron, ' Personality and Organizational Conflict: Effects of the Type A Behavior Pattern and Self-Monitoring,· Organizntional Behavior and H11man Decision Processes, October 1989, pp. 281- 296; A. Drory and I. Ritov, ' Effects of Work Experience and Opponent's rower on Conflict Ma nagement Styles: /ntemational Jo11mal of Conflict Management 8 (1997), pp. 148- 161; R. J. Sternberg and L. J. Soriano, ' Styles of Conflict Resolution,• Journal of Personality and Social Psychology, July 1984, pp. 115- 126; and R. J. Volkema and T. J. Bergmann, ' Confl ict Style.< as Indicators of Behavioral Patterns in Interpersonal Confl icts,• Joun,al of Social Psycholog)', February 1995, pp. 5- 15.

25 Based on S. r . Robbi ns, Managing Organizational Conflicl: A Nontraditional Approach (Upper Sadd le River, NJ: Prentice Hall, 1974), pp. 59- 89.

26 Based o n K. W. Thomas, "Toward Mu ltidi mensiona l Val ues in Teaching: The Example of Conflict Beh aviors,• Academy of Management Review, July 1977, p. 487; and C. K . .,,...,_ De Dreu, A. Evers, B. Beersma, E. S. Kluwer, and A. Nauta, 'A Theory-Based Measure of Conflict Management Strategie.s in the Workplace,· Journal of Organizational Behavior 22, no. 6 (September 2001 ) , pp. 645- 668.

27 R. Kreitner and A. Kinicki, Organizational Behavior, 6th ed. ( New York: McGraw-Hill, 2004), p. 492, Table 14-1. Reprinted by permis.<ion of McGraw Hill Education.

28 ' Managers Spend More Than 6 Hours per Week Handling Staff Conflicts: Survey,' HR Reporter, March 23, 2011.

29 R. D. Ramsey, ' Interpersonal Confl icts: S11perVision 66, no. 4 (April 2005), pp. 14- 17.

30 G. Todorova, J. B. Bear, a nd L. R. \.Veingart, ' Can Conflict Be Energizing? A Study of Task Conflict, ro.sitive Emotions, and Job Satisfaction,· Jo11mal of Applied Psyclwlogy99 (2014), pp. 451 - 467.

31 Based o n D. Tjosvold, Leaming to Manage Conflicl: Getting People to \.\fork Together Prod11ctively (New York: Lexington Books, 1993), pp. 12- 13.

32 M. E. Zell mer-Bruh n, M. M. Maloney, A. D. Bhappu, a nd R. Salvador, .. When and How Do Differences Matter? An F.xploration of Perceived Similarity in Teams," Orgmiizntional Behavior and H11man Decision Processes 107, no. 1 (2008), pp. 41 - 59.

33 See T. H. Cox, S. A. Lobel, and r. L. Mcl eod, ' Effect.< of Eth nic Group Cultural Differences on Cooperative Behavior on a Group Task: Academ)' of Management Journal, December 1991, pp. 827- 847; and D. va n Knippenberg, C. K. W. De Dreu, and A. C. Homa n, "Work Group Diversity and Group Performance: An Integrative Model and Resea rch Agenda,• Journal of Applied Psyclwlog)', December 2004, pp. 1008- 1022.

34 R. !lies, M. D. Johnson, T. A. Judge, and J. Keeney, 'A Within- Ind ividual Study of Interpersonal Conflict as a \.Vork Stressor: Disposit iona l a nd Situational Moderato rs,· Jo11rnal of Organizational Behavior 32, no. 1 (2011 ), pp. 44- 64.

35 K. J. Beh far, R. S. Peterson, E. A. Mannix, and W. M. K. Trochim, ' The Critica l Role of Confl ict Re.solution in Tea ms: A Close Look at the Li nks between Conflict Type, Conflict Management Strategies, and Team Outcomes, · Jo11mal of Applied Ps)'clwlogy 93, no. 1 (2008), pp. 170- 188; A.G. Tekleab, N. R. Quigley, a nd r. E. Tesluk, "A Longitudi nal Study of Team Conflict, Conflict Management, Cohesion, and Team Effectiveness," Croup mid

End notes 587

Organizntion Management 34, no. 2 (2009), pp. 170- 205; and E. Va n de Vliert, M. C. Euwema, and S. E. Hu ismans, ' Managing Confl ict with a Subord inate o r a Superior: Effectiveness of Conglomerated Behavior,• Jo11mal of Applied Ps)'cholos,• 80 ( 1995), pp. 2 71 - 281.

36 A. So mech , H. S . Desiv ilya, and H. Lidogoste r, "Team Conflict Ma nageme nt a nd Tea m Effectivenes-<: The Effects of Task Inte rdependence a nd Team Iden tification, · Journal of Organizntional Behavior 30, no. 3 (2009), pp. 359- 378.

37 r . J. Hinds a nd D. E. Ba iley, "Ou t of Sigh t, O ut of Sync: Understandi ng Conflict in Distrib uted Teams," Organiz.atio,i Science, November- December 2003, pp. 615- 632.

38 K. A. Jeh n, L. Greer, S. Levi ne, a nd G. Szu lanski, "The Effect.< of Conflict Types, Dimensions, and Emergent States on Group Outcomes, · Group Decision and Negotiation 17, no. 6 (2005), pp. 777- 796.

39 M. E. Zellmer-Bruh n, M. M. Maloney, A. D. Bhappu, and R. Salvador, "\"'hen and How Do Differences Matter? An Exploration of Perceived Similarity in Teams," Organizational Behavior and Human Decision Processes 107, no. I (2008), pp. 41 -59.

40 Vignette based on A. Brockman, 'Auto Analysts Split on Unifor's Strength in GM Contract Talks; CBCNews, September 6, 2016, http://www.cbc.ca/ news/ canada/ windsor/ unifor-gm-contract- talks-bargaining-position- I .3750203.

41 M. H. Bazerman, J. R. Curhan, D. A. Moore, a nd K. L. Valley, ' Negotiation,• Ammal Review of Ps)'chology 51 (2000), pp. 279- 314.

42 See, for example. D. R. Ames, .. A~sertiveness Expectancies: How Hard People rush Depends o n the Consequences They Predict,• Journal of Personality and Social Psychology 95, no. 6 (2008), pp. 1541- 1557; and J. R. Curhan, H. A. Elfenbein, and H. Xu, ' What Do People Va lue When They Negotiate? Mapping the Domain of Subjective Value in Negotiation,· Journal of Persona/it)' and Social Ps)'clwlogy 91, no. 3 (2006), pp. 493- 512.

43 This model is based on R. J. Lewicki, ' Bargaining and Negotiation,• Excl1a,ige: The Orga,iiz.atio,ial Behavior Teachitig Jounial 6, no. 2 ( 1981 ), pp. 39- 40; and B. S. Mo.ska]. "The Art of the Deal; lndustr)'Week, January 18, 1993, p. 23.

44 J. C. Magee, A. D. Ga linsky, a nd D. H. Gruenfeld, · rower, Propens ity to Negotiate, and Movi ng First in Competitive Interactions,• Personality and Social Psychology Bulletin, February 2007, pp. 200- 212.

45 H. R. Bowle.<, L. Babcock, a nd L. Lei, "Social Incentives fo r Gender Differences in the Propensity to Initiative Negotiations: Sometimes It Does Hurt to Ask," Organizational Behavior a,id Human Decision Processes 103 (2007), pp. 84- 103.

46 Ba.sed on G. Ku, A. D. Gali ns~-y, and J. K. Murnighan, 'Starting Low but Ending High: A Reversal of the Anchori ng Effect in Auctions,• Journal of Personality and Social Psychology 90 (June 2006), pp. 975- 986; K. Sherstyuk, 'A Comparison of First Price Multi· Object Auctions," Experimental Economics 12, no. 1 (2009), pp. 42- 64; and R. M. Isaac, T. C. Salmon, and A. Zillante, 'A Theory of Ju mp Bidd ing in Ascend ing Auctions," Jo11rnal of Economic Behavior & Organizntion 62, no. 1 (2007), pp. 144- 164.

47 D. A. Moore, ' Myopic Prediction, Self-Destructive Secrecy, and the Unexpected Benefits of Revealing Final Deadlines in Negotiation,• Organizntional Behavior and Human Decision Processes, July 2004, pp. 125-139.

48 M.A. Rahim, Managing Conflict in Organizntions, 4th ed. (New Brun.swick, NJ: Transaction Publishers, 2011 ).

49 C. KW. De Dreu, L R. Weingart, and S. Kwon, "Influence of Social Motives on Integrative Negotiation: A Meta.analytic Review and Test of Two Theories,• Joumal of Personality and Social Ps)'clwlogy, May 2000, pp. 889- 905.

50 A. .,,..,,_ Brooks and M. E. Schweitzer, "Can Nervous Nelly Negotiate? How Anxiety Ca uses Negotiators to Make Low First Offers,

588 Endnotes

Exit Early, and Earn Les_, Profi t, · Orga11iza1io11al Behavior and Human Decisio11 Processes 115, no. 1 (2011 ), pp. 43- 54. (Awa rded Be.st Paper with a Student as First Autho r by th e International Association for Confl ict Management, 2010.), http://www.hbs. edu/ faculty/ Pages/ item.aspx?num=4513 7.

51 A. \¥. Brooks and M. E. Schweitzer, "Can Netv0us Nelly Negotiate? How Anxiety Causes Negotiators to Make Low First Offers, Exit Early, and Earn Less Profit." Organizntio,ial Behavior and Human

Decision Processes 115, no. 1 (2011 ), pp. 43- 54.

52 This model is based on R. J. Lewicki, D. Saunders, and B. Barry, Negoriario11, 7th ed. (New York: McGraw Hill, 2014).

5 3 D. Malhotra and M. Bazerman, "Investigative Negotiation," Harvard Busi11ess Review, September 2007, pp. 72- 78.

54 J. R. Curhan, H. A. Elfenbein, and G. J. Kilduff, "Getting off on the Right Foot: Subjective Value versus Economic Value in Predicting

Longitudinal Job Outcomes from Job Offer Negotiations,· Journal of Applied Psyc/1olog,• 94, no. 2 (2009), pp. 524-534.

55 R. Fisher and V\f. U iy. Getting lo \~s: Negotiating Agreement without Giving /11, 2nd ed. (New York: Penguin, 1991 ) .

56 Based o n L. L. Thomp.,on, J. \'/ang, and B. C. Gunia. "Negotiation,• A1111ual Review of Psyc/1olog,• 61 (2010), pp. 491 - 515.

57 M. Schaerer, R. I. Swaab, and A. D. Galin.,ky, "Anchors Weigh More Than Power: Vslhy Absolute Powerles.,ness Liberates Negotiators to Achieve Better Outcomes,· Psychological Science, December 2014, doi: 10. ll 77 / 0956797614558718.

58 R. P. Larrick and G. Wu, "Claiming a Large Slice of a Small Pie: Asymmetric Disconfirmation in Negotiation,• Journal of Personality a11d Social Psyc/1olog,• 93, no. 2 (2007), pp. 212- 233.

59 M. Marks and C. Harold, "V.' ho Asks and Who Receives in Sa lary Negotiation,• Joumal of Orga11izario11al Behavior 32, no. 3 (2011 ) , pp. 371- 394.

60 R. Fisher and W. U iy. Getting lo \~s; Negotiating Agreement without Giving /11, 2nd ed. (New York: Penguin, 1991 ) .

61 H. A. Elfenbein, "Individua l Difference in Negotiation: A Nearly Abandoned Pursuit Revived, " Current Directions i,i Psychological Scie11ce24 (2015), pp. 131- 136.

62 R. Fisher and W. U iy. Getting lo \~s: Negotiating Agreement without Givi11g /11, 2nd ed. (New York: Penguin, 1991 ) .

63 T. A. Judge, B. A. Livingston, and C. Hurst, "Do Nice Guys- a nd Ga ls- Really Finish Last? T he Join t Effects of Sex and Agreeab leness on Income, · Journal of Perso11ality and Social Psyclwlog)' 102 (2012), pp. 390- 407.

64 Based on T. R. Cohen, ' Moral Emotions and Unethical Ba,gaining: The Differential Effects of Empathy and Perspective Taking in Deterring Deceitful Negotiatio n," Journal of Busi11ess Ethics 94, no. 4 (2010), pp. 569- 579; a nd R. Volkema, D. Fleck, and A. Hofmeister, .. rredicting Competitive. U nethical Negotiati ng Behavio r a nd Its Consequences, " Negotiation Journal 26, no. 3 (2010), pp. 263- 286.

65 N. Dimotakis, D. E. Co nlon, a nd R. ll ies, "The Mind a nd Heart (Literally) of the Negotiato r: Personality and Contextual Determinants of F.xperiential Reactions and Economic Outcomes in Negotiation," Joumal of Applied Psychology97 (2012), pp. 183- 193.

66 E.T. Amanatullah, M. W. Morris, and J. R. Curhan, "Negotiators 1Nho Give Too Much: Unmitigated Communio n, Relational Anxieties, and Economic Costs in Distributive and Integrative Bargaining." Journal of Personality a11d Social Psychology 95, no. 3 (2008), pp. 723- 738; and D.S. DeRue, D. E. Conlon, H. Moon, and H. \¥. Willaby. "When Is Straightforwardnes., a Liability in Negotiation.,? The Role of Integrative Potential and Structural Power,• Joumal of Applied Ps)'clwlogy 94, no. 4 (2009), pp. 1032- 1047.

67 S. Sharma, W. Bottom, a nd H. A. Elfenbein, "On the Ro le of Personality, Cognitive Ab ility, a nd Emotional Intell igence in

rredicting Negotiation Outcom~: A Meta.analysis," Organizational Psychology Review 3 (2013), pp. 293- 336.

68 H. A. Elfenbein, J. R. Cu rhan, N. Eisenkra ft, A. Shirako, and L. Baccaro, "'Are Some Negotiato rs Better Than Others? Individua l Differe nces in Ba rgaini ng O utcomes,"' Jountal of Research i,i Personality, December 2008, pp. 1463- 1475.

69 A. Zerres, J. Hiiffmeier, P. A. Freund, K. Backhaus, and G. Hertel, "Does It Take Two to Tango? Longitudinal Effects of Unilaterial and Bilateral Integrative Negotiation Training,• Joumal of Applied Psychology98 (2013), pp. 478- 491.

70 G. Lelieveld, E. Van Dijk, I. Va n Beest, and G. A. Va n Kleef, "Why Anger a nd Disappointment Affect Other's Barga ining Behavio r Differently: The Moderating Role of Power and the Mediating Role of Reciprocal Complementary Emotions,· Personality and Social Psychology B111/eti11 38 (2012), pp. 1209- 1221.

71 S. Cote, I. Hideg, a nd G. A . van Kleef, "The Consequences of Faking Anger in Negotiations,• Journal of E.xperime11tal Social Psychology 49 (2013), pp. 453- 463.

72 G. A. Van Kleef and C. K. W. De Dreu, "Longer-Term Con.sequences of Anger Expres.,ion in Negotiation: Retaliation or Spillover?" Joumal of F.xperime111al Social Psyclwlogy 46, no. 5 (2010), pp. 753- 760.

73 H. Ada m and A. Shirako, "Not All Anger Is Created Equal: The Impact of the Expresser's Cu lture on the Socia l Effects of Anger in Negotiations," Joumal of Applied Psychology 98, no. 5 (2013), pp. 735- 798.

74 G. Lelieveld, E. Van Dijk, I. Va n Beest, and G. A. Va n Kleef, "Why Anger a nd Disappointment Affect Other's Barga ining Behavio r Differently," Personality a11d Social Psycholog)' Bulleti11 38 (2012), pp. 1209- 1221.

75 M. Olekalns a nd P. L. Smith, "Mutually Dependent: Power, Trust, Affect, and the Use of Deception in Negotiation," Joumal of Busi11ess Ethics 85, no. 3 (2009), pp. 347-365.

76 A. W. Brooks a nd M. E. Schwei tze r, "Can Nervous Nell ie Negotiate? How Anxiety Causes Negotiators to Make Low First Offers, Exit Early, and Earn Less Profit,• Orga11izatio11al Behavior and Human Decision Processes 115, no. I (2011 ), pp. 43- 54.

77 M. Sinaceur, H. Adam, G. A. Van Kleef, and A. D. Galin.,ky, "The Advantages of Being Unpredictable: How Emotional Inconsistency Extracts Conc~ions in Negotiation, .. Jountal of Experimentnl Sodal Psychology49 (2013), pp. 498- 508.

K. Leaiy, J. Pillemer, and M. Wheeler, "Negotiating with Emotion,• Harvard Business Review, January- February 2013, pp. 96- 103, https://hbr.org/201 3/ 01 / negotiating-with-emotion.

P. D. Trapnell and D. L. Paulhus, "Agentic and Communal Values: Their Scope a nd Measu rement."' Journal of Personality Assessment 94 (2012), pp. 39- 52.

C. T. Ku lik and M. Oleka lns, "Negotiating the Gender Divide: Lesso ns from the Negotiation and Organ izational Behavio r Literatures," Jou ma I of Ma11ageme111 38 (2012), pp. 1387- 1415.

C. Suddath, "The Art of Haggli ng,· Bloomberg Busi11essweek, November 26, 2012, p. 98.

J. Mazei, J. Hiiffmeier, P.A. Freund, A. F. Stuhlmacher, L. Bilke, and C. Hertel, "'A Meta-analysis on Gender Differenc~ in Negotiatio n O utcomes a nd Thei r Moderators," Psychological B11/leti11 141 (2015), pp. 85- 104.

L. J. Kray, C. C. Locke, and A. B. Van Zant, "Feminine Charm: An Experimental Analysis of Its CosL< and Benefits in Negotiations,• Perso11ality and Social Psrchology B11/leti11 38 (2012), pp. 1343- 1357.

S. de Lemus, R. Spears, M. Bukowski, M. Moya, and J. Lupiai\ez, "Reversing Implicit Gender Stereotype Activatio n as a Functio n of Exposure to Trad itiona l Gender Roles,• Social Psychology 44 (2013), pp. 109- 116.

D. A. Small, M. Gelfand, L. Babcock, and H. Gettman, "\¥ho Goes to the Bargaining Table? The Influence o f Gender and Framing

o n the Initiation o f Negotiation,• Journal of Personality and Social Psyclwlogy93, no. 4 (2007), pp. 600- 613; and C. K. Stevens, A.G. Bavetta, and M. E. Gist, "Gender Differen ces in the Acquisitio n o f Sa lary Negotiation Skills: The Ro le of Goals, Self-Efficacy, and Perceived Control,• Journal of Applied l's)'chology 78, no. 5 (October 1993), pp. 723-735.

86 L Schweitzer, E. Ng, S. Lyons, and L. Kuron, ' Exploring the Career Pipeline: Gender Differenc~ in Pre-Career Expectations," Relations lndustrielles/111dustrial Relations 66, no. 3 (2011 ), pp. 422-444.

87 Based on N. McDonald, ' Uni for President Dias Has Had Quite the Yea r: thestar.com, December 31, 2016, https://\\~Vw.thestar. com/ autos/ 2016/ 12/ 31/ unifor-president-d ias-has-had-quite-the- year.html.

88 D. T. Kong, K. T. Dirks, and D. L Ferrin, ' Interpersonal Trust within Negotiatio ns: Meta-analytic Evidence, Critical Contingen cies, and Directions for Future Resea rch," Academ)' of Management Jounial 57 (2014 ), pp. 1235-1255.

89 G. R. Ferris, J. N. Harris, Z. A. Russell, B. r . Ellen, A. D. Martinez, a nd F. R. Blass, "The Role of Reputation in the Organizational Sciences: A Mu lt ilevel Review, Construct Assessmen t, and Research D irections," Research in Persomiel mid Human Resources Management 32 (2014), pp. 241- 303.

90 R. Zinko, G. R. Ferris, S. E. Humphrey, C. J. Meyer, and F. Aime, "'Personal Reputation in Organizations: Two-Study Constructive Replication and Extensio n o f Antecedents and Consequences," Journal of Occupational and Organizational Psrchology 85 (2012), pp. 156- 180.

91 A. Hinshaw, r. Reilly, and A. Kupfer Schneider, 'Attorneys and Negotiation Ethics: A Material Misunderstanding?"' Negot;atio,i Journal 29 (2013), p p. 265-287; a nd N . A. Welsh, ' T he Reputational Advantages of Demonstrating Trustworthiness: Using the Reputation Index with Law Students," Negot;ation Journal 28 (2012), pp. 117- 145.

92 J. R. Cu rhan, H. A. Elfenbei n, and X. Heng, ' What Do People Value \¥h en They Negotiate? Mapping the Domain of Subjective Value in Negotiation,· Journal of Personality and Social Ps)'chology 91 (2006), pp. 493-512.

93 W. E. Baker and N. Bulkley, · raying It Forwa rd vs. Reward ing Reputation: Mechan isms o f Generalized Reciprocity,• Organization Science25 (lune 17, 2014), pp. 1493- 1510.

94 G. A. Van Kleef, C. K. V.,,. De Dreu, and A. S. R. Manstead, "An Interpersonal Approach to Emotion in Social Decision Making: T he Emotio ns as Social Information Model, " Advances i,i Experimental Social Psychology 42 (2010), pp. 45- 96.

95 F. Lumineau and J. E. Henderson, "The Influence o f Relational Experience and Contractual Governance o n the Negotiation Strategy in Buyer- Supplier Disputes,· Journal of Operations Management 30 (2012), pp. 382- 395.

96 Mediate BC, ' Mediator Survey 2014: Mediate BC, October 14, 2014, http://www.mediatebc.com/ PDFs/ M BC-Survey-Summary- Final.aspx.

97 Conciliatio n and Labour Tribun als Division, Nova Scotia Labour and Advanced Education, Conciliation: A Guide for Employer and Union Committees (Halifax: Author, 2012), http://novascotia.ca/ Jae/ conciliation/ docs/ Conci I iation_ Guide_ WEB.pdf.

98 H. R. Markus and S. Kitayama, ' Culture and the Self: Implications for Cognition, Emotion, and Motivation,• Psychological Review 98, no. 2 (1991), pp. 224- 253; and H. Ren and B. Gray, ' Repairing Relationship Confl ict: How Violation Types and Culture Influence the Effectiveness of Restoration Rituals,• Academy of Management Review 34, no. 1 (2009), pp. 105- 126.

99 M. J. Gelfand, M. Higgins, L. H. Nishii, J. L. Raver, A. Dominguez. F. Muraka mi, S. Yamaguch i, a nd M. Toya ma, "Cu ltu re a nd Egocentric re.rceptions o f Fairness in ConAict and Negotiation," Journal of Applied Psychology, October 2002, pp. 833- 845; and

Endnotes 589

Z. Ma, "Ch inese Confl ict Management Styles and Negotiation Behaviours: An Empirical Test," International Journal of Cross Cultural Management, April 2007, pp. 101 - 119.

100 r. r . Fu, X. H. Yan, Y. Li, E. \.Vang, a nd S. Peng, "Examining Conflict-Hand ling Approaches by Ch inese Top Manageme nt Teams in IT fi rms," hiternational Journal of Co,iflict Management 19, no. 3 (2008), pp. 188- 209.

101 \¥. Liu, R. Friedman, and Y. Hong, ' Culture and Accountability in Negotiation: Recognizing the Importance of In-Group Relations,• Organizational Behavior and Human Decision Processes 117 (2012), pp. 221- 234; a nd B. C. Gunia, J. M. Brett, A. K. Nandkeolya r, and D. Kamdar, "Paying a Price: Culture, Trust, and Negotiation Consequences,· Journal of Applied Psychology 96, no. 4 (2010), pp. 774- 789.

102 L A. Liu, R. Friedman, B. Barry, M. J. Gelfand, and Z. Zhang, "The Dynamics of Consensus Building in lntracultural and lntercultural Negotiatio ns,• Administrat ive Science Quarterly 5 7 (2012), pp. 269- 304.

103 Based on S. Kopelman and A. S. Rosette, ' Cultural Variation in Response to Strategic Emotions in Negotiations," Group Decision and Negotiation 17, no. I (2008), pp. 65-77; and M. Liu, "The lntrapersonal and Interpersonal Effects of Anger o n Negotiation Strategies: A Cro.~"·Cultural Investigation," Human Communication Resean;h 35, no. 1 (2009), pp. 148- 169.

104 M. Liu, "The lntrapersona l and Interpersonal Effects of Anger on Negotiatio n Strategies: A Cross-Cultu ral Investigatio n," Human Com,mmication Resean;h 35, no. 1 (2009), pp. 148- 169; and H. Adam, A. Shimko, and\¥. \,V. Maddux, ' Cultura l Variance in the Interpersona l Effects of Anger in Negotiations, · Psychological Science 21, no. 6 (2010), pp. 882- 889.

105 C. Gaines, ' NBA Players Have The Highest-Average Salaries in the \,Vorld But No League Spends More on Players Than the NFL: Business Insider, November. 14, 2016, http://www.busines.<insider. com/ nfl-mlb-nba-nhl-average-sports-salarie.<-2016-11; https:// www.forbe.,.com/ profile/ n-mu rray-edwa rds/ ; J. Feinstei n, "In the NHL Lockout, the Owners Have It All V.,,rong; Washington Post, December 25, 2012, http://articles.washingtonpost.com/ ; R. Cimini, "Geno Smith's Maturity Questioned: ESPN, May 3, 2013, http://espn.go.com/; K. Campbell, "Thanks to Donald Fehr, NH L Negotiating again.<t ILself .. . and Losing, • The Hocke)' News, December 29, 2012, http://sports.yahoo.comf; B. Murphy, ' 20 Years of Peace and Prosperity Have Followed MLB's Last Strike,• 1iuin Citie~ July 5, 2014, http://www.twincities.com/spons/ ci_26095630/ peace-that-lasts-s ince-1994-season-ending-strike; a nd E. Seba, ' Oil Refinery Strike Widens to Large.st U.S. Plant,• Huffington Post, February 21, 2015, http://www.huffi ngtonpost.com/ 2015/02/ 21/ us-refinery-strike-wide_n_6727736.html.

106 S. Shellenbarger, ' Clashing over Office Clutter,• Wall Street Journal, March 19, 2014, h ttp://\\~vw.wsj.com/ articles/SB10001 42405270230474 7404579447331212245004; S. Shellenbarger, "To Fight or Not to Fight? Wh en to Pick Workp lace Battles,• Wall Street Journal, December 17, 2014, http://www.wsj.com/articles/ picking-your-workplace-battles-1418772621; a nd M. J. Gelfand, J. R. Harri ngton, and L. M. Leslie, ' Confl ict Cultures: A New Fro ntier for Conflict Management Resea rch and Practice." in Handbook of Conflict Management Researcl1, ed. N. M. Ashkan...,)', 0. B. Ayoko, and K. A. Jehn (Cheltenh am, UK: Edward Elgar, 2014), pp. 109- 135.

107 Based on http://www.mcm illan.ca/ Canadian-Unionization-Rates- Continuing·tO·fall; and Fraser Institute, "Comparing Government and Private Sector Compensation in Canada, · December 8, 2016, https://W\,~v.fraserinstitute.org/studies/ comparing-government- an d-private -sector-compensation-in-canada.

108 These suggestio ns are based o n J. A. \.Vall Jr. and M. \¥. Blum, ' Negotiations: Journal of Management, June 1991, pp. 278- 282; and J. S. Pouliot, ' Eight Steps to Success in Negotiating, • Nation's Business, April 1999, pp. 40-42.

590 Endnotes

OB on the Edge: Workplace Bullying

1 Based o n Y. Brend, "VSB Trustees Discus., Fate of 12 Schools on the

Chopping Block,· CBC News, September JS, 2016, http://W\,~V. cbc.ca/ news/canada/ british-columbia/vancouver-schools.cJosures- education-cu L<·aging-infrastructu re-1.3763993; and C. Pablo, · independent Report Rips Sacked Vision Vancouver Trustees for Culture of Fear in School District, • Georgia Strait, March 8, 2017, h ttps://\\~vw.straight.com/ news/ 878886/ independent-report-rip.<· sacked·vision.vancouve.r·trustees-culture· fear·school-district.

2 L M. Anderson and C. M. Pearson, 'Tit for Tat? The Spiraling Effect of Incivility in the 1A'orkplace, • Academ)' of Management Review 24, no. 3 (1999), pp. 452- 471. For further discussion of this, see R. A. Baron and J. H. Neuman, ~ 1orkplace Violence and Workplace Aggression: Evidence o n Their Relative Frequency and Potential Causes," Aggressive Behavior 22 ( 1996), pp. I 61 - 173; C. C. Chen and VV. Eastman, .. Towards a Civic Culture for Mu lticultura l O rganizations," Journal of Applied Behavioral Science 33 (1997), pp. 454- 470; and J. H. Neum an and R. A. Baron, •Aggre.s.,ion in the Workplace," in A,uisodal Behavior i,i Orgm1iu,tio11s, ed. R. A. Giacalo ne a nd J. Greenberg (Thousand Oaks, CA: Sage, J 997), pp. 37- 67.

3 L. M. Anderson and C. M. Pearson, "Tit for Tat? The Spiraling Effect of Incivility in the Workplace," Academy of Manage111e11t Review 24, no. 3 (1999), pp. 452- 4 71.

4 · oefinitio n of Workplace Bully ing,• Workforce Bull)'ing lllstitute, http:/ / www. wo rkp lace bu I I y i ng.org/ i nd i v i d ua ls/ p roblem/ definitio n/.

5 · 2014 WBJ U.S. \.Vorkplace Bullying Survey," Workplace Bullying

Institute, February 2014, h ttp://www.workplacebullyi ng .o rg/ wbi res ea rch/wbi-2014-us-survey / .

6 C. Porath and C. Pearson, "The Price of Incivility: Lack of Respect H urts Morale and the Bottom Line," Harvard Busitiess Review, January- February 2013, p. 117.

7 M. Houshmand, J. O 'Reilly, S. Robinson, and A. Wolff, "Escaping Bullying: The Simultaneous Impact of Individual and Unit-Level Bul lying on Turnover Intentions," Human Relations 65, no. 7 (2012), pp. 901- 918.

8 · oefinitio n of Workplace Bully ing, • Workforce Bull)'ing l11Stitu1e, http://W\vw.workplacebullying,org/individuals/problemfdefinition/ .

9 https://wW\v.worksafebc.com/en/ health-s.afety/ hazards.exposures/ bullying-harassment.

10 R. A. Ba ron and J. H. Neu m a n, •wo rkp lace Vio lence a nd Workplace Aggression: Evidence on Their Relative Frequency and Potential Causes," Aggressive Behavior 22 ( 1996), pp. 161 - 173; C. MacKinnon, 0111)' Words (New York: Basic Books, 1994 ); J. Marks, "The American Uncivil Wars,• U.S. News & World Report, April 22, 1996, pp. 66- 72; and L. P. Spratlen, · workplace Mistreatm ent: Its Relationship to Interpersonal Vio lence, • Journal of Psycltosocial Nursing 32, no. 12 (1994), pp. 5 - 6.

11 K. MacQueen and C. McKenna, "Workplace Rampage, • Macletm 's, May 8, 2014 , h ttp://www.madeans.cafnews/canada/ the-shootings- at·we.'item· f or est· i n· nanaimo·point·tO·a·bigger·problem/ .

11 W. M. G lenn, "An Employee's Survival Guide: An ILO Survey of Workplaces in 32 Countries Ranked Argentina the Most Violent, Followed by Romania, France and Then, Surprisingly, Canada, •

Occupational Health & Safety, April- May 2002, p. 28 passim.

13 J. Lindzon, "Workplace Abuse Comes at Steep Cost for Nurses, Taxpayers," Globe and Mail, June 28, 2017, https://beta .th e- g lobea nd m a i I. com/ report-o n-business/ careers/ m anagement/ wo rkp I ace· abuse. com es. at ·Steep-cost· for-n urses-taxpayers/ article35461112.

14 J. Lindzon, "Workplace Abuse Comes at Steep Cost for Nurses, Taxpayers," Globe and Mail, June 28, 2017, https://beta.the- g lobea nd m a i I. com/ report-o n-business/ careers/ m anagement/

workplace-abuse-comes-at ·Steep-cost· for· nurses-taxpayers/ artide35461112.

15 •catholic School Board Raises Concerns with Report o n 'A'orkplace

Violence and Teachera, • CBC News, June 29, 2017, h ttp://W\vw.cbc. ca/ news/ ca nada/windsor/catholic-school-board -raises.concerns. with-report-o n-workplace-violence-and-teachers-1.4184017.

16 K. MacQueen and C. McKenna, · workplace Rampage, • Maclean's, May 8, 2014, http:/ f,V\,~v.madeans.ca/ news/canada/ the-shooting;- at-western-forest-in-nanaimo -point-to-a-bigger-problem/ .

17 E. Ell is, "Today's Jobs Can Be Hard o n Your Head," Va11couver S1111, June 25, 2014, p. DI.

18 J. O'Reilly, S. L. Robinson, J. L. Berdahl, and S. Banki, "Is Negative

Attention Better Tha n No Attention? The Comparat ive Effects of Ostracism and Harassment at Work," Organizational Science, April 4, 2014. Published o nline.

19 E. Ell is, "Today's Jobs Can Be Hard o n Your Head," Va11couver Sun, June 25, 2014, p. DI.

20 A. M. Webber, "Danger: Toxic Company,• Fast Compmt)', November 1998, pp. 152- 157.

21 D. Flavelle, •Managers Cited for Increase in Work Rage,'" Vancouver Su11, April 11 , 2000, pp.DI, D II; and G. Smith, \ol'ork Rage: Identify the Problems, lmplemelll 1/te Solutions (Toronto: Ha rperColl ins Canada, 2000).

22 -Work Rage, • BCBusiness Magazine, January 2001, p. 23.

23 D. Flavelle, •Managers Cited for Increase in Work Rage,'" Vancouver Su11, April 11 , 2000, pp. DI, Oil.

24 A. Skogstad, T. Torshei m, S. Einarsen, and L. J. Hauge, "Testing the Work Enviro nment Hypothesis of Bu llying on a Group Level of Analysis: Psychosocial Factors a< Precursors of Observed \.Vorkplace Bullying," Applied Psycltology: A11 lntemational Review 60, no. 3 (July 2011 ), pp. 475 - 495.

25 D. Geddes, and L. T. Stickney, •The Tro uble w ith Sa nctions: O rganizational Responses to Deviant Anger Displays a t \<\fork, •

Human Relations 64, no. 2 (February 2011 ), pp. 201 - 230.

26 •7 Sign.< You Have a Terrible Boss, • Salary.com, accessed Decem ber 21, 2017, https://wW\v.salary.com/ 7 -reasons.terrib le-boss/ .

27 S. L. Robinson a nd E. W. Mo rrison, "The Developm ent of Psychological Contract Breach and Violation: A Longitudinal Study, · Journal of Organiza1io11al Beltavior 21, no. 5 (2000), pp. 525- 546; and S. D. Salamon and S. L. Robinson, "Trust That Binds: The Impact of Coll ective Felt Trust on Organizationa l Performance,· Journal of Applied Psychology 93, no. 3 (2008), pp. 593 - 601.

28 D. C. Thomas, S. R. Fitzsimmons, E. C. Ravlin, K. Au, B. Z. Ekel und, and C. Barza ntny, "Psychologica l Co ntracc< across

Cultures," Orga11ization Studies 31, no. 11 (2010), pp. 1437- 1458.

29 S. Montes and D. Zweig, "Do Promises Matter? An Exploration of the Role of Promises in Psychological Contract Breach,• Journal of Applied Psyc/1ology 94, no. 5 (2009), pp. 1243- 1260.

30 A. M. Webber, "Danger: Toxic Company,· Fast Compmt)', November 1998, pp. 152- 157.

31 A. M. Webber, "Danger: Toxic Company,• Fast Compmt)', November 1998, pp. 152- 157.

32 Based on A. McKee "Neutralize Your Toxic Boss,• HBR Blog Nen11ork, September 24, 2008, http://blogs.hbr.org/2008/ 09/ neutralize- your-toxic-boss/; and "Toxic Bo.,ses: How to Live with the S.0.8., •

BusinessWeek, August 13, 2008, h ttp://wW\v.businessweek.com/ sto ries/ 2008-08-13 / toxic-bosses.how-to -I ive-with-the-s.dot-0-dot · b-dot.

33 P. Frost, Toxic Emorio,u at Work (Cambridge, MA: Harvard Business School Press, 2003).

34 • Men More Likely to Be Rude in \.Vorkplace, Survey Shows," Va11couver Sun, August I 6, 1999, p. B JO.

35 D. E. Gibson and S. G. Barsade, "The Experience o f Anger at Work: Lessons from the Chronically Angry" (paper presented at the annual meetings of the Academy of Management, Chicago, August 11 , 1999).

36 D. E. Gibson and S. G. Barsade, "The Experience of Anger at Work: Lessons from the Chronically Angry" (paper presented at the annual meetings of the Academy of Management, Chicago, August 11 , 1999).

37 C. Porath and C. Pearson, "The Price of Incivility,• Harvard Business Review, January- February 2017, https://hbr.org/2013/ 01/ the-price- of-incivility.

38 R. Corelli, "Dishi ng Out Rude ness: Comp lain ts Abound as Customers Are Ignored, Berated; Maclean',, January 11, 1999, p. 44.

39 R. Baca!, "Toxic Organ iza tions- Welco me to the Fire of a n Unhealthy Workp lace: Work911.com, 2000, http://work91 J.com/ articles/ toxicorgs.htm.

40 D. Aa rts, "What Bosses Ca n Lea rn Fro m Their Codd led Millennia l Employees,· profitguide.com, December 2, 2016, http://www.profitguide.com/ manage-grow / hu ma n-resources/ deborah-aarL<·workplaces-should-adapt-to-coddled-millennials- 107722.

41 L. Panjvani, "An Overview of Anti-Bullying Legislation and Alternatives in Canada; LawNow, July l , 2013 , http://www. I a wnow .o rg/ a n-o ve rview · Of -a nti · b u I lyi ng-legi s I a tio n-a nd · alternatives-in-canada.

42 E. Ellis, "Today's Jobs Can Be Hard on Your Head,• Vancouver Sun,

June 25, 2014, p. D I.

43 E. Ellis, "Today's Jobs Can Be Hard on Your Head,• Vancouver Sun, June 25, 2014, p. D I.

Chapter 10

1 Vignette based o n M. Solomon, "To Transform Your Compa ny Culture, Cha nge You r POV: Hyatt CEO's Perspective,• Forbes, May II , 2015, http://www.fo rbes.com/ sites/ micahsolomon/ 2015/ 05/ 11/ transform-your-corporate-culture-by-cha nging-your- pov-the-hyatt-ceo-interview/; B. \.Vitt, *Hyatt Hotels: Making CSR Work in a Decentralized Global Company,• Hotel Business Review, May, 2015, http://hotelexecutive.com/ busi ness_review/ 3098/ hyatt-hotels-making-csr-work-in-a-decentralized-global-company; S. Shankman, "How Hyatt's CEO Empowers Employees to Drive the Guest Experience: Shift, December 14, 2014, http://s kift. com/ 2014/ 12/ 15/ interview-how-hyatts-ceo-empowers-employees- to-drive-th e-guest-experience/; *\.Vorld of Hyatt," http://www. hyatttravelagents.com/cms.cfm ?nPageNo=29694; and *Hyatt- About O ur Brands, • http://www.hyatttrave lagen ts.com/ cms. cfm?nPageNo=29694.

2 "'Organization Man: Henry Mintzbe.rg Has Some Common Sense Observations About the \<\lays \,Ve Run Companies,· Financial Post, November 22/ 24, 1997, pp. 14- 16.

3 See, for example, B. Schneider, M. G. Ehrhart, and W. H. Macey, *Organizational Climate and Culture, • Ammal Review of Psychology, 2013, pp. 361 - 388.

4 I. Borg, P. J. F. Groenen, K. A. Jehn, W. Bilsky, a nd S. H. Schwartz, ' Embedding the Organizational Culture Profile into Schwartz's Theory of Universals in Values,· Joumal of Personnel Psychology 10 (2011 ) , pp. 1- 12.

5 See, for exa mple, C. Ostroff, A. J. Kinicki, and M. M. Tamkins, ' Organizational Culture and Cli mate,• in Handbook of Psycholog)': Industrial and Organizational Ps)'clwlogy, ed. W.C. Borman, D. R. llgen, and R. J. Klimoski (New Jersey: Wiley, 2003), pp. 565- 593.

6 D. A. Hoffman and L. M. Jones, "Leadersh ip, Co ll ective Personality, and Performance,· Joumal of Applied Psycholog)' 90, no. 3 (2005), pp. 509- 522.

End notes 591

P. Lo k, R. Westwood, a nd J. Crawford, ' Perceptio ns of

Organisational Subculture and Their Significance for Organisational Commitment,· Applied Ps)'chology: An /111emational Review 54, no. 4 (2005), pp. 490- 514; and B. E. Ashforth, K. M. Rogers, a nd K. G. Corley, "identity in Organizations: Exploring Cross-Level Dynamics," Organization Sciena 22 (2011 ), pp. 1144- 1156.

T. Hsieh, ' Zappos's CEO on Going to Extremes for Customers,• Harvard Business Review, July/August 2010, pp. 41 -45.

9 For discussions of how culture can be evaluated as a s hared perception, see D. Chan, ' Mutlilevel a nd Aggregation Issues

in Climate and Cultu re Research; in The Oxford Handbook of Organizational Climate and Culture, ed. B. Schneider and K. M. Barbera (New York: Oxford University Press, 2014), pp. 484- 495; and J. B. Sorensen, "The Strength of Corporate Culture and the Reliability of Firm Perform ance," Administrative Science Quarterly, March 2002, pp. 70- 91.

10 B. Sch neider, A. N. Salvaggio, and M. Subirats, "Climate Strength: A New Direction fo r Climate Research,• Journal of Applied Psychology 87 (2002), pp. 220- 229; L M. Kotrba, M.A. Gillespie, A. M. Schmidt, R. E. Smerek, S. A. Ritch ie, and D. R. Denison, "Do Consistent Corporate Cultures Have Better Business Performance: Exploring the Interaction Effects," H11ma11 Relations 65 (2012), pp. 241- 262; and M. W. Dickson, C. J. Resick, and P. J. Hanges, "When O rga nizational Climate Is Unambiguous, It Is a lso Strong,· Jo11mal of Applied Psychology 91 (2006), pp. 351- 364.

11 M. Schulte, C. Ostroff, S. Shmulyian, and A. Kinicki, "Organizational Climate Configurations: Relationships to Collective Attitudes, Customer Satisfaction, and Financia l Performance," Jounwl of Applied l's)'cholog)'94, no. 3 (2009), pp. 618- 634.

12 See S. Ma itlis a nd M. Ch rist ianson , "Sensemaking in Organizations: Taking Stock and Moving Forward,• The Academ)' of Management Annals 8 (2014), pp. 57- 125; K. \.Veber and M. T. Dacin, "The Cultural Construction of Organizational Life, • OrganiZ1Jtion Sciena 22 (2011), pp. 287- 298.

13 Y. Li ng, Z . Simsek, M. H. Lu batk in, and J. F. Veiga, "Transformationa l Leadership's Role in Pro moting Corporate Entrepreneurship: Examining the CEO-TMT Interface,· Academy of Management Jo11mal 51, no. 3 (2008), pp. 557- 576; a nd A. Malhotra, A. Majch rzak, and B. Rosen, *Leading Virtual Teams,• Academ)' of Ma11agement Perspectives 21 , no. 1 (2007), pp. 60- 70.

14 L. R. James, C. C. Choi, C. E. Ko, P. K. McNeil, M. K. Minton, M. A. 'A'right, and K. Kim, "O rga nizatio nal and Psychological Climate: A Review of Theory and Resea rch," E11ropea11 Joumal of Work and Orga11i.z1Jtio11al Psychology 17, no. 1 (2008), pp. 5- 32; and B. Schneider and K. M. Barbera, ' Introduction and Overview,• in The o~ford Handbook of Orga11izational Climate and C11lture, ed. B. Schneider and K. M Barbera (New York: Oxford University Press, 2014), pp. 3- 22.

15 J. Z. Carr, A. M. Schmidt, J. K. Fc,rcl, and R. P. DeShon, "Climate Perceptions Matter. A Meta-analytic Path Analyse< Relating Molar Climate, Cognitive and Affective States, and Individual Level Work Outcomes: Joumal of Appli..t l's)dwlogy 88, no. 4 (2003 ), pp. 605-619.

16 M. Schulte, C. Ostroff, S. Shmulyian, and A. Kinicki, "Organizational Climate Configurations: Relationships to Collective Attitudes, Customer Satisfaction, and Financia l Performance," Jounwl of Applied l's)'cholog)'94, no. 3 (2009), pp. 618- 634.

17 D.S. Pugh, J. Dietz, A. P. Brief, and J. W. Wiley, *Looking In.side and Out The Impact of Employee and Community Demographic Composition on Organizatio nal Diversity Climate," Journal of Applied Ps)'chology93, no. 6 (2008), pp. 1422- 1428; K. H. Ehrhart, L. A. Witt, B. Schneider, and S. J. Perry, ' Service Employees Give as They Get: Internal Service as a Moderator of the Service Climate-Service Outcomes Link; Journal of Applied Psychology 96, no. 2 (2011 ), pp. 423 - 431; and A . Sim ha and J. B. Cullen, "Ethical Climates and Their Effects on Organizational Outcomes:

592 Endnotes

Implicatio ns from the Past and Prophecies for the Future, · Academy of Management Perspectives, November 2011, pp. 20- 34.

18 J. C. Wallace, P. D. Johnson, K. Mathe, and J. Paul, "Structura l a nd Psychologica l Empowerment Climates, Pe rformance, and the Moderating Role of Shared Felt Accountability: A Managerial Perspective, · Journal of Applied Psychology 96, no. 3 (2011 ) , pp. 840- 850.

19 J. M. Beus, S. C. Payne, M. E. Bergman, and V.,,. Arthu r, "Safety Climate a nd Injuries: An Exam inatio n of T heo retica l a nd Empirical Relationships; Journal of Applied Ps)'clwlogy 95, no. 4 (2010), pp. 713- 727.

20 A. Simha and J. B. Cu llen, "Eth ical Climates and Their Effects on Orga nizational Outcomes: Im plications from the Pai;t and Prophecies for the Future: Academy of Management, November 2012, pp. 20- 34.

21 Based on "West Jet, a True Example of Customer-Cen tric Culture: Knightsbridge Thought Leadership Newsletter, accessed August 15, 2014, http://\\~vw.knightsbridge.com/ sitecore/content/ Knightsbridge/ home/ThoughtLeadership/ on PeopleNewsletter/ Articles/ FF.A'f0/o201 _Sept2011 _ \.Vest Jet.

22 A. Simha and J. B. Cu llen, "Eth ical Climates and Their Effects on Orga nizational Outcomes: Im plications fro m the Past and Prophecies for the Future: Academy of Management, November 2012, pp. 20- 34.

23 A. Simha and J. B. Cu llen, "Eth ical Climates and Their Effects on Orga nizational Outcomes: Im plications fro m the Past and Prophecies for the Future," Academy of Manageme,u, Novem ber 2012, pp. 20- 34.

24 A. Arna ud, "Conceptualizing and Measu ring Ethical \.Vork Cl imate: Development a nd Val idation of the Ethica l Climate Index,· Business & Society, June 2010, pp. 345-458.

25 A. Arnaud and M. Schminke, 'The Ethical Climate and Context of Organizations: A Comprehen.~ive Model," Organization Science, November- December 2012, pp. 1767- 1780.

26 J. Howard-Greenville, S. Bertels, and B. Lahneman, "Sustainability: How It Shapes Organizational Cu ltu re a nd Climate, • in The Oxford Handbook of Organizational Climate and Culture, ed. B. Schneider and K. M. Barbera (New York: Oxford University Pres.,, 2014), pp. 257- 275.

27 P. Lacy, T. Cooper, R. Hayward, a nd L. Neuberger, "A New Era of Susta inability: UN Global Compact-Accenture CEO Study 2010, • June 2010, http://www.uncsd2012.org/content/documents/ Accenture_A_New_era_of_Sustainability_CEO_study.pdf.

28 H. R. Dixon-Fowler, D. J. Slater, J. L. Johnson, A. E. Ellstrand, and A. M. Romi, "Beyond 'Does It Pay to Be Green?' A Meta-analysis of Moderators of the CEP-CFP Relationship,• Journal of Business Ethics 112 (2013), pp. 353- 366.

29 P. Bansal, "From Issues to Actions: The Importance of Individual Concerns and O rga nizational Values in Responding to Natura l Environmental Issues,· Organizntion Science 14 (2003), pp. 510- 527; P. Bansa l, "Evolvi ng Sustai nab ly: A Longitudi nal Study of Corporate Sustainable Development, " Strategic Managemenl Joumal 26 (2005), pp. 197- 218; a nd J. Howard-Grenville and A. J. Hoffman, "The Importance of Cultural Framing to the Success of Social Initiatives in BLL'iiness." Academy of Manageme,it Executive 17 (2003), pp. 70- 84.

30 A. R. Carrico and M. Riemer, "Motivating Energy Conservation in the Workplace: An Evaluation of the Use of Group-Level Feedback and Peer Education,· Jou ma I of Enllironmenllll Psrcliology 31 (2011 ), pp. 1- 13.

3 1 J. P. Kotter, .. Change Management: Accelerate !" Haroard Busitiess Review, November 2012, pp. 44- 58.

32 R. Walke r, "Behind th e Music," Forwne, October 29, 2012, pp. 57- 58.

J. P. T itlow, "How Spotify's Music-Obsessed Cultu re Keeps Employees Hooked,· Fast Company, August 20, 2014, http://,V\,~V. fas t com pany.com/303461 7 fhow-spotifys-music-obsessed-culture- ma kes-the-company-rock.

"\.Vhy Intuit Is More Innovative Than Your Compa ny, • Forbes, https://www.forbe.,.com/s ites/ bruceupbin/ 2012/09/ 04/ intuit-the- 30-year -o ld-startup/ 3/ #4ded4 35 71 a2c.

J. Bandier and D. Burke, "How HP Lost Its Way," Fortune, May 21 , 2012, pp. 147- 164.

C. F. Lanzara and C. Patriotta, "'The Institutional ization of Knowledge in an Automotive Factory:Templates, ln.'Kriptions, and the Problems of Durability,· Organizntion Studies 28, no. 5 (2007), pp. 635- 660; a nd T. B. Lawrence, M. K. Mauws, B. Dyck, a nd R. F. Kleysen, '11,e Politics of Organizational Learning: Integrating Power into the 41 framework," Academ)' of Manageme,it Review, Januaiy 2005, pp. 180- 191.

J. B. So rensen, "The Stre ngth of Corpora te Culture and the Reliability of Firm Performance,• Administrative Science Quarterly, March 2002, pp. 70- 91.

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D. Liu, T. R. Mitchell, T. \.V. Lee, B. C. Ho ltom, and T. R. Hinkin, "When Emp loyees Are out of Step with Coworkers: How Job Satisfaction Trajectoiy and Dispers ion Influence Individual-a nd Unit· Level Voluntary Turnover, " Academy of Managemenl Journal 55 (2012), pp. 1360- 1380.

R. A. \,Veber a nd C. F. Camerer, "Cultura l Confl ict and Merger Fa ilure: An Experi mental Approach, · Management Science, April 2003, pp. 400-412; I. H. Gleibs, A. Mummendey, and P. Noack, "'Predictors of Cha nge in Postmerger Identification During a Merger Process: A Longitud inal Study; Jounial of Personality and Social Psychology 95, no. 5 (2008), pp. 1095- 1112; a nd F. Bauer and K. Matzler, "Antecedents of M&A Success: The Role of Strategic Complementarity, Cultural Fit, and Degree and Speed of Integration,• Strategic Ma11agement Journal 35 (2014 ), pp. 269- 291.

41 K. Voigt, "Mergers Fail More Often Than Marriages; CNN, May 22, 2009, http://edition.cnn.com/ 2009/ BUSINESS/05/ 21/ merger. marriage/ .

42 Vignette based on S. Shankman, "How Hyatt's CEO Empowers Employees to Drive the Guest Experience, " Skift, December 14, 2014, http://skift.com/ 2014/ 12/ 15/ i nterview-how-hyatts-ceo- ern powers-em p I oyeeS· to·d rive· th e··gue.'\t ·ex-peri ence/ .

43 Y. L. Zhao, 0. H. Erekson, T. \.Vang, and M. Song. "Pioneeri ng Adva ntages and En trepre neurs' First. Mover Decis io ns : An Empirical Investigation for the United States a nd China, • Journal of Product /11novatio11 Manageme11t, December 2012, pp. 190- 210.

44 E. H. Schein, Orga11izntional Culture and Leadership, Vol. 2. (New York: John \.Viley & Sons, 2010).

45 "PCL's Biggest Investment: Its People,· National Post, September 2, 2008, p. FPIO.

46 See, for example, D. E. Bowen and C. Ostroff, "The 'Strength' of the H RM System, O rganizatio nal Climate Formation, and Fi rm Performance: Academy of Manageme11t Review 29 (2004), pp. 203- 221.

47 \,V. Li, Y. \.Vang, P. Taylor, K. Shi, a nd D. He, "The Influence of Organizational Culture on Work-Related Personality Requirement Ratings: A Multilevel Analysis,· lntemational Joumal of Selection and

Assessment 16, no. 4 (2008), pp. 366- 384; I. O h, K. S. Kim, and C. H. Van lddekinge, 'Taking It to Another Level: Do Personality· Based Huma n Capital Resources Matter to Firm Perfonnance?" Journal of Applied Ps)'c/10/ogy 100 (2015), pp. 935 - 94 7; and A. Bardi, K. E. Buchanan, R. Goodwin, L. Slabu, and M. Robinson, ' Value Stability and Change during Self-Chosen Life Tran.<itions: Self-Selection versus Socialization Effects,• Journal of Personality and Social PS)'Cholog,, 106 (2014 ) , pp. 131- 147.

48 ' Building a Beller Workforce: PROFIT, Februal)' 16, 2011, h ttp:// www.profitguide.com/ manage-grow/ huma n-resources/ building- a-better-workfo rce-30073.

49 ' Buildinga Beller Workforce: PROFIT, Februal)' 16, 2011, h ttp:// www.profitguide.com/ manage-grow/ huma n-resources/ building- a-better-workfo rce-30073.

50 D. C. Ham br ick and P. A. Mason, "Uppe r Echelo ns: T he O rganizatio n as a Reflectio n o f Its Top Ma nagers,· Academy of Management Review, April 1984, pp. 193- 206; M.A. Carpenter, M.A. Geletkanycz, and V.,,. G. Sanders, "Upper Echelons Research Revisited: Antecedents, Ele ment.<, and Consequences of Top Management Team Composition," Journal of Management 30, no. 6 (2004), pp. 749- 778; and H. Wang, A. S. Tsui, and KR. Xin, "CEO Leadership Behaviors, Oiganizational Performance. and Employees' Attitudes,• Tiie Leadership Quarter/)' 22, no. 1 (2011 ), pp. 92- 105.

51 D. M. Cable and C. K. Parsons, "Socialization Tactics and Person. O rganization Fit,· Personnel Psyc/10/og,1 Spring 2001, pp. 1- 23; and T. N. Bauer, T. Bodner, 8. Erdogan, D. M. Truxillo, and J. S. Tucker, "'Newcomer Adjustment during O rganizational Socialization: A Meta-ana lytic Review o f Antecedents, Outcomes, and Methods," Joumal of Applied Ps)'chology92, no. 3 (2007) , pp. 707-721.

52 A. M. Saks and J. A. Gru m an, "O rga nizat io nal Socia lizat ion and Positive Orga nizational Behaviour: Implications for Theory, Research, and Practice., " Canadian Jountal of Admi,iistrarive Sciences 28, no. 1 (2011 ), pp. 4- 16.

53 J. lmpoco, "Basic Training, Sanyo Style. · U.S. News & World Report, July 13, 1992, pp. 46- 48.

54 8. Filipczak, 'Trained by Staibucks, • Training, June 1995, pp. 73-79; and S. Gruner, ' Lasting Impressions,· Inc., July 1998, p. 126.

55 D. M. Cable. F. Gino, and 8. R. Staats, "Breaking Them In o r Eliciting Their Best? ReframingSocialization around Newcomers' Authentic Self-Expression: Administrative Science Quarterly 58 (2013), pp. 1- 36; and M. Tuttle, "A Review and Critique o f Van Maanen and Schei n's Toward a Theory of Organizational Socialization' and Implications for Human Resource Development," Human Rescurr:e Development Review I (2002), pp. 66-90.

56 C. J. Collins, "The Interactive Effects o f Recruitment Practices and Product Awareness on Job Seekers' Em ployer Knowledge and Appl icatio n Behavio rs: Jounial of Applied Psychology 92, no. I (2007), pp. 180- 190.

57 J. D. Ka mmeyer-Mueller and C. R. \.Vanberg, "Unwrapping the O rganizational Entry Process: Disentangling Multiple Antecedents and Their Pathways to Adjustment,• Joumal of Applied Ps)'chology 88 (2003), pp. 779- 794; E. V\I. Morrison, ' Longitudinal Study of the Effects of Info rmation Seek ing on Newcomer Socialization," Journal of Applied Psychology 78 (2003), pp. 173- 183; a nd M. Wangm, Y. Zhan, E. McCune, a nd D. Truxillo, "Understanding Newcomers' Adaptability and Work-Related O utcomes: Testing the Mediating Roles o f Perceived P-E Fit Variables, · Personnel Ps)'c/10/og)' 64, no. 1 (2011 ) , pp. 163- 189.

58 J. Galang, ' As \.Vattpad Celebrates 10th Birthday CEO Allen Lau Shares Netfl ix- Like Ambitions,• accesssed November 3, 2017, http://betakit.com/ as-wat tpad-celebrates- JOth-bi rthday-ceo-allen- l au -sh are.<· n etfl ix -1 i ke-a m bi Lions/ .

59 Based o n S. Duu o n, "TELUS: A Pervasive Learning Cultu re,· Business 10 Community, August 9, 2014, h ttp ://www.business2 com munity.com/ huma n.resources/ tel US· pervasive. (earn ing· culture-keeps-em ployees-tuned-engaged-0967431 # !bAwMv l ;

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"Why TELUS: Career Development,· TELUS, accessed August 20, 2014, h ttp://about.telus.com/ commu nity/ english/ careers/ why_ telus/ career_developm ent; and ' W hy TELUS: Cultu re: TELUS, accessed August 20, 2014, h ttp://about.telus.com/ community/ engl ish/careers/ why _telus/ culture.

60 E. \.V. Morrison, ' Newcomers' Relationships: The Role of Social Network Ties During Socialization," Academy of Management Joumal 45 (2002), pp. 11 49- 1160.

61 A. M. Saks and J. A. Gruman, ' Getting Newcomers Engaged: The Role of Socialization Tactics, • Journal of Managerial Ps)'clwlogy 26 (2011 ), pp. 383- 402.

62 T. N. Bauer, T. Bodner, 8. Erdogan, D. M. Truxillo , and J. S. Tucker, "Newcomer Adjustment duri ng Organizational Socia lization: A Meta-anal}~ic Review o f Anteceden ts, Outcomes, and Methods,• Joumal of Applied Psyc/1olog,, 92, no. 3 (2007), pp. 707-721.

63 W. R. Boswell, A . J. Shipp, S. C., Payne, and S. S. Culbertson, "Changes in Newcomer Job Satisfaction Over lime: Examining the Pattern of Honeymoons and Hangovers,· Journal of Applied Psychology 94, no. 4 (2009), pp. 844- 858; and W. R. Boswell, J. W. Boudreau, and J. Tichy, "The Relationship between Employee Job Change and Job Satisfaction: The Honeymoon-Hangover Effect, · Joumal of Applied Psyc/1olog,, 90 (2005), pp. 882- 892.

64 J. D. Kammeyer-Mueller, C. R. Wanberg, A. L. Rubenstein , a nd Z. Song. "Support, Undermining, and Newcomer Socialization: Fitt ing in duri ng the Fi rs t 90 Days,• Academy of Managemelll Joumal 56 (2013), pp. 1104- 1124; and M. Jokisaari and J. Nurmi, "Change in Newcomers' Supervisor Support and Socialization Outcomes after Organizational Entry," Academy of Management Joumal 52 (2009), pp. 527-544.

65 C. Vandenberghe, A. Panaccio , K. Bentei n, K. Mignonac, and P. RouS-<el, "AS-<e.ssi ng Lo ngitud inal Cha nge o f a nd Dynam ic Relatio nsh ips a mo ng Ro le St ressors, Job Allitudes, Turnover Intention, and Well-Being in Neophyte Newcomers,• Journal of Organizational Behavior 32, no. 4 (2011 ), pp. 652- 671.

66 Vignetle based on M. Solomo n, "To Transform Your Com pany Culture. Change Your POV: Hyatt CEO's Perspective. • Forbes, May JI, 2015, h ttp://www.forbes.com/sites/ micahsolomon/ 2015/ 05/11/ transform -your-corporate-culture-by-changing-your-pov-the-hyatt· ceo-interview/; and S. Shankm an, "How Hyatt's CEO Empowers Employees to Drive the Guest Experience: Skift, Decem ber 14, 2014, hup://ski ft.com/ 2014/ I 2/ 15/ interview-how-hyatL<-ceo- ernpowers.ernployees·tO·drive· the~guest·expe.rience/ .

67 R. Spence, 'Telling Sto ries Makes for Happy Endings: National Post (Financial Post), April 20, 2009, p. FP4.

68 S. L. Dailey and L. Browning, "Retelling Sto ries in O rganizations; Understanding the Functions of Narrative Repetition,• Academ)' of Management Review 39 (2014), pp. 22- 43.

69 A. J. Shipp and K. J. Jansen, "Reinterpreting Time in Fit Theory: Crafting and Recrafting Narratives of Fit in Medias Res,· Academ)' of Management Review 36, no. I (2011 ), pp. 76- 101.

70 See G. Isla m and M. J. Zyphur, ' Rituals in O rga nizations: A Review and Expan., ion of Current Theol)', • Croup and Organization Management 34, no. I (2009), pp. 11 4- 139.

71 V. Matth ews, "Sta rting Every Day with a Shout and a So ng: Financial Times, May 2, 2001 , p. 11 ; and M. Gimein, "Sam \.Valton Made Us a Promise, · Fortune, Ma rch 18, 2002, pp. 121- 130.

72 M. G. Pratt and A. Rafaeli, "Artifacts and Organ izations: Understand ing Our Object ive Reali ty: in Art ifacts and Organizations: Be)'ond Mere Symbolism, ed. A. Rafaeli and M. G. Pratt (Mahwah, NJ: Lawrence Erlbaum, 2006), pp. 279- 288.

73 Thanks to an anonymo us reviewer for adding these.

74 Thanks to a reviewer for this stOI)'.

75 Based on S. Shankman, "How Hyatt's CEO Empowers Employees to Drive the Guest Experience. " Skift, December 14, 2014, http://

594 Endnotes

skift.com/ 2014/ l 2/ 15/ i nterview-how-hya tt.<-ceo-empowers- employees-to-drive-the-guest-experience/ .

76 J. P. Kotter, *Leading Changes: \.Vhy Transformation Efforts Fail,• Haroarrl Busi11e,s Review, March-April 1995, pp. 59- 67; andJ. P. Kotter, Lendi11g Cha11ge (Boston: Hatvard Business School Pres.,, 1996).

77 A. Ardichvilli, J. A. Mitchell, and D. Jondle, *Characteristic.< of Ethical Busi ness Cultures,• Journal of Busi11ess Ethics 85, no. 4 (2009), pp. 445-451; and D. M. Mayer, *A Review of the Literature on Eth ica l Cl imate a nd Culture, • in The Oxford Ha11dbook of Orga11izatio11al Climate a11d Culture, ed. B. Schneider and K. M. Barbera (New York: Oxford University Press, 2014), pp. 415- 440.

78 Based on J. P. Mulki, J. F. Jaramillo, and \.V. B. Locander, *Critical Role of Leadership on Ethical Climate and Sale.sperson Behaviors,· Joumal of Business Ethics 86, no. 2 (2009), pp. 125- 141 ; M. Sch minke, M. L. Ambrose, and D. 0. Neubaum, "The Effect of Leader Moral Development o n Ethical Climate and Employee Attitudes, " Organiz.al"io,ial Behavior and Huma,i Decision Processes 97, no. 2 (2005), pp. 135- 151; and M. E. Brown, L K. Trevino, and D. A. Harrison, *Ethical Leadership: A Social Learning Perspective for Construct Development and Testing, " Organiz.atio,ial Behavior a11d Huma11 Decisio11 Processes 97, no. 2 (2005), pp. 117- 134.

79 D. M. Mayer, M. Kuenzi, R. Greenbaum, M. Bardes, and S. Salvador, *How Low Does Ethica l Leadership Flow? Te.st of a Trickle-Down Model," Organizational Behavior and Human Decisio,i Processes 108, no. I (2009), pp. 1- 13; a nd L. J. Chri stensen, A. Mackey, a nd D. Whetten, "Taking Responsib ility for Corporate Social Respon., ibility: The Role of Leaders in Creating. Implementing, Sustaini ng, or Avoid ing Socially Responsib le Fi rm Behaviors,· Academr of Ma11agemet1t Perspectives 28 (2014 ), pp. 164- 178.

80 B. Sweeney, D. Arnold, and B. Pierce, "The Impact of Perceived Ethica l Cu ltu re of the Firm a nd Demograph ic Va riables on Auditors' Ethical Evaluation and Intention to Act Decisions," Joumal of Busi11ess Ethics 93, no. 4 (2010), pp. 531- 551.

81 M. L. Gruys, S. M. Stewan, J. Goodstein, M. N. Bing. and A. C. Wick.,, "Values Enacunent in Organizations: A Multi. Leve.I fxamination,"

Joumal of Managemetlt 34, no. 4 (2008), pp. 806- 843.

82 D. L. Nelson and C. L. Cooper, eds., Positive Orga11izational Behavior (London, UK: Sage, 2007); K. S. Cameron, J. E. Dutton, and R. E. Quinn, eds., Positive Orga11izational Scholarship: Fo1mdatio11s of a New Discipli11e (San Francisco: Berrett-Koehler, 2003); and F. Luthans and C. M. Youssef, "Emerging Positive Organizational Behavior, · Joumal of Ma11ageme11t, June 2007, pp. 321- 349.

83 J. Rob ison, *Grea t Leaders hip under Fi re, • Gallup Leadership Joumal, March 8, 2007, pp. 1- 3.

84 R. Wagner and J. K. Haner, l 2: Tire Elemellts of Great Ma11agi11g (New York: Gallup Press, 2006).

85 S. Finema n, .. On Being Positive: Concerns and Counterpoints," Academy of Ma11ageme11t Review 31, no. 2 (2006), pp. 270- 291.

86 P. Dvorak, *A Firm's Culture Can Get Lost in Translation." Wall Street Jouma/, April 3, 2006, pp. Bl , 83; K. Kranhold, "'The lmmelt Era, Five Years Old, Transforms GE,• \.Vall Street Joumal, September II, 2006, pp. Bl, 83; and S. McCartney, "Teach ing Americans How to Behave Abroad,• \.Vall Street Jouma/, April II, 2006, pp. DI, 04.

87 D. J. McCanhy a nd S. M. Pu ffer, ' Interpreting the Ethica lity of Corporate Governance Decision in Rus.o;ia: Utilizing Integrative

Social Contracts Theory to Evaluate the Relevance of Agency Theory Norms." AcademrofManagemellt Review 33, no. I (2008), pp. 11- 31.

88 P. Monin, N. Noorderhavin, E. Vaara, and D. Kroon, *Giving Sense to and Making Sense of Justice in Posunerger Integration.· Academy of Ma11ageme11t Jouma/, February 2013, pp. 256-284; A. Sim ha and J. B. Cullen, *Ethical Climates and Their Effects o n Organizational Outcomes: Impl icatio ns from the Past and Prophecies for the Future, • Academy of Management Perspectives. November 2011, pp. 20- 34; and E. Vaara and J. lienari, ' On the Narrative Con.struction of Multinational Corporations: An Antenarrative Ana lysis of

Legitimation and Resi'itance in a Cr~ · Border Merger," Organizatio,i Science, March-April 2011, pp. 370- 390.

89 Based o n B. Azar, *Po.,itive Psychology Advances, with Growing Pains." Mo11itor 011 Psrchologr, April 2011, pp. 32- 36; A. Grant, "How Customers Can Ral ly Your Troops," Harvard Busi,iess Review, June 2011, http://hbr.o rg/2011/ 06/ how-customers-can- rally-you r-troops/a r/ l; and J. McCarthy, •5 Big Problems with Po.,itiveThinki ng (And \.Vhy You Should Do It Anyway),* Positive Psrclwlog)', October 5, 2010, http://psycho logyofwellbeing. co m/ 201010/ 5-big-p rob )ems-with-positive-th inki ng-a nd -why- you-should-do-i t-anyway.html.

90 F. Gino, "Ba nking Cultu re Encourages Disho nesty,· Scie11tific American, December 30, 2014, http://www.scientificameri· ca n.com/ a rticle/ banki ng-cu ltu re-encourages-disho nesty/; A. Cohn, E. Fehr, a nd M. A. Ma rechal, *Business Culture and Dishone.sty in the Banking Industry." Nature, 2014, doi: 10.1038/ naturel 3977; L. Geggel, "FIFA Scandal: The Complicated Science of Corruption,• Scientific America11, May 31, 2015, http://\\~VW. scientificamerican.com/ anicle/ fifa-scanda l-the-compl icated- science-0f-corruptionJ; and K. Radnedge, *Culture Change Required If FIFA Is to Eliminate Wrongdoing. • World Soccer, May 29, 2015, http://\\~vw.worldsoccer.com/ columnists/ keir-radnedge/ culture- change-req u ired· if. ft fa. is. to-el i mi na te-w ro ngdo i ng-3 6 2 2 7 8.

91 B. Lanks, "Don't Get Too Cozy,· Bloomberg B11si11essweek, October 30, 2014, http:f f ,vww.busines-sweekme.com/ Bloomberg/ news- mid/ 190/ newsid/ 271; M. Konnikova, "The Open-Office Trap." New Yorker, January 7, 2014, http://www.newyorker.com/ business/ currency/ the-open-office-trap; and N. Ashkanasy, 0. B. Ayoko, and K. A. Jeh n, "Understanding the Physica l Enviro nment of Work and Employee Behavior: An Affective Events Perspective, • Joumal of Orga11izational Behavior 35 (2014 ). pp. 1169- 1184.

92 J. Murphy, "At Patagonia, Trying New Outdoor Adventures Is a Job Requirement." Wall Street Joumal, March JO, 2015, http://\\~Vw. wsj.com/ articles/ at· patagonia·trying. new.outdoor.adventures· is-a-job-requirement-1425918931; B. Schulte, "A Company That Profits as It Pa mpers Workers, · Washi11gton Post, October 25, 2014, http:/ /www. was hi ngtonpost.com/ busi ness/ a-company- that-profits-as-it-pa mpers-workers/ 2014/ 10/ 22/ d33 21b34-4818- ll e4-b72e-d60a9229cc l0 _story. html; and D. Baer, ' Patagoni a CEO: There's No Way I Should Make O ne Decision Based o n Quarterly Resulu ;• B11si11ess l11Sider, November 19, 2014, http:// www.businessinsider.com/ patagonia·ceo· intetview.2014· 11.

93 Ideas in this feature were influenced by A. L Wilki ns, "The Culture Audit: A Tool for Understanding Organizations." Orga11izntio11al D)•t1amics, Autumn I 983, pp. 24- 38; H. M. Trice and J.M. Beyer, The Cultures of Work Orga11izatio11s (Englewood Cliffs, NJ: Prentice Hall, I 993), pp. 358- 362; H. Lancaster, "To Avoid a Job Failure, Learn the Culture of a Company First,• Wall Street Joumal, July 14, 1998, p. Bl; and M. Belliveau, •4 'A'ays to Read a Company,• Fast Com pan)', October I 998, p. 158.

Chapter 11

1 Vignette based on http://kellyalovell.com/ about-kellylovell/; J. Schroeder, .. How Volunteerism Can Help Kickstart Your Career,"

Forbes, April 14, 2016, https://www.forbe.s.com/s ites/ julesschro- eder / 20 I 6 / 04 / 14 / how -vo I u nteerism -can-help-kickstart-you r · career/ #481cbd!3!883; and M. Anderson, "Young and Restless." IFP, August I , 2013, http://www.lfpress.com/ 2013/08/01/ young- and· re.'itJess.

2 See T. A. Judge, J. E. Bono, R. ll ies, a nd M. W. Gerhard t, *Personality a nd Leaders hip: A Qualitative and Quantitative Review,• Joumal of Applied Psrclwlogr, August 2002, pp. 765-780.

3 Based on D. Fost, *Survey Finds Many Workers Mistrust Bosses,• Sa11 Francisco Clrronicle, January 3, 2007, http://www.sfgate.com; and T. Weiss, "The Narcissistic CEO." Forbes, August 29, 2006, http://www.forbes.com.

4 C. C. Eckel, E. Fatas, and R. 'Nilson, "Cooperation and Status in O rganizations,· Journal of Public Economic Theory 12, no. 4 (2010), pp. 737-762.

5 D. R. Ames and F. J. Flynn, "v\lhat Breaks a Leader: The Curvilinear Relatio n between Assertiveness and Leadership," Jounial of Personality and Social Psycltology 92, no. 2 (2007), pp. 307- 324.

6 A. E. Colbert, M. R. Barrick, a nd B. H. Bradley, "Personality and Leadership Composition in Top Management Teams: Implication.< for O rganizational Effectivene.<S, • Personnel Psycltology 67 (2014 ) , pp. 351- 387.

7 K.-Y. Ng, S. Ang, and K. Ch a n, " Pe rsonali ty and Leade r Effectiveness: A Moderated Mediation Model of Leadership Self. Efficacy, Job Dem ands, and Job Autonomy; Journal of Applied Psyc!wlog)' 93, no. 4 (2008), pp. 733-743.

8 R. B. Kaiser, J. M. LeBreton, and J. Hoga n, ' The Dark Side of Personality a nd Extreme Leader Behavior,· Applied Psrclwlogy: An International Review 64, no. 1 (2015), pp. 55- 92.

9 B. H. Gadd is a nd J. L. Foster, ' Meta-ana lysis of Da rk Side Personal i ty Characte ristics and Critica l \+Vo rk Beh av io rs a mo ng Leaders across the Glo be: Find ings and Im plications for Leadership Developm ent a nd Executive Coaching; Applied Psyc!wlogr: An llllemational Review 64, no. I (2015), pp. 25- 54.

10 R. H. Humphrey, J. M. Pollack, and T. H. Hawver, "Leading with Emotiona l Labor: Journal of Managerial Psycltology 23 (2008), pp. 151- 168.

11 F. Wa lter, M. S. Cole, a nd R. H. Hu m ph rey, " Em ot iona l Intelligence: Sine Qua Non o f Leadership o r Folderol?" Academy of Management Perspectives, February 2011, pp. 45- 59.

ll S. Cote, P. N. Lopez, P. Salovey, and C. T. H. Miners, "Em otional In tel ligence and Leade rsh ip Em ergence in Small Croups,· Leaders/tip Quarterly 21 (2010), pp. 496- 508.

13 N. En.sari, R. E. Riggio, J. Christian, and C. Carslaw, "Who Emerges as a Leader? Meta-analyses o f Ind ividual Differences a< Predictors of Leadership Emergence,• Personality and illdividual Differences, September 2011, pp. 532- 536.

14 This re.search is updated in T. A. Judge, R. F. Piccolo , and R. llies, "The Forgotten O nes?The Valid ity of Con.,ideration and Initiating Structure in Leadership Research,• Journal of Applied Psrcltolog)', February 2004, pp. 36-51.

15 D. Akst, 'The Rewards of Recognizing a Job Well Done,• Wall Street Jouma/, January 31 , 2007, p. 0 9.

16 R. Ka hn a nd D. Katz, ' Leadersh ip Pract ices in Relat ion to Productivity and Morale,• in Croup Dynamics: Researclt and Theory, 2nd ed., ed. D. Cartwright and A. Zander (El msford, NY: Row, Paterson, 1960).

17 T. A. Judge, R. F. Piccolo, and R. llies, 'The Forgotten O nes? The Validity of Consideration and Initia ting Structure in Leadership Research,· Journal of Applied Psycltology, February 2004, pp. 36- 51.

18 S. Derue, J. Nahrgang, N. Wellman, and S. Humphrey. 'Trait and Beh avioral Theorie.< of Leadership: An Integrat io n and Meta- a nalytic Test of their Relative Valid ity,· Personnel Psrcl1olog)' 64 (2011), pp. 7-52.

19 F. E. Fiedler, A Theory of Leadersh ip Effectiveness (New York: McGraw-Hill, 1967) .

20 See, for example, C. Thompson and R. P. Vecchio, "Situational Leadership Theory: A Test of Th ree Versions,• Leaders/tip Quarterly 20, no. 5 (2009), pp 837-848; and R. P. Vecchio, C. R. Bullis, and D. M. Brazil, "The Utility of Situational Leadership Theory- A Replication in a Military Setting, · Small Croup Researclt 37, no. 5 (2006), pp. 407- 424.

21 R. Fehr, K. C. Yam, and C. Dang, ' Moralized Leadersh ip: The Con.<truction and Con.sequences of Ethical Leader Perceptions,• Academy of Management Review 40, no. 2 (2015) , pp. 182- 209; and M. Hernandez, C. P. Long, and S. B. Sitkin, "Cultivating Follower

Endnotes 595

Trust: Are All Leader Behaviors Equally Influential!" Organization Studies 35, no. 12 (2014), pp. 1867- 1892.

22 S. J. Per ry, L. A. \<\litt, L. M. Pe nney, a nd L. Atwater, "Th e Downside of Coal-Focused Leadership: The Role of Personality in Subord inate Exhaust io n,· Joumal of Applied Psrcltology 95, no. 6 (2010), pp. 1145- 1153.

23 S. H. Ma lik, H. Sika nda r, H. Hassa n, a nd S. Aziz, "Path Coal Theory: A Study of Job Satisfaction in Telecom Sector,• in C. Da n (ed.), Management and Service Science 8 (2001), pp. 127-134; and R. R. Vecchio, J. E. Justin, and C. L. Pearce, "The Utility of Transactio nal a nd Transform ational Leadership for Predicting Pe rform a nce a nd Sa t isfact io n w ith in a Path -Coa l T heo ry Framework, • Journal of Occupational and Organizational Psycltology 81 (2008), pp. 71 - 82.

24 Vignette based o n J. Schroeder, "How Volunteerism Can Help Kick.start Your Career: Forbes, April 14, 2016, h ttps://www.forbes. com/ sites/ julessch roeder / 2016/ 04 / J 4 / how-vol u n teerism-ca n- hel p-kick.<tart-you r-career/ # 481 cbd 131883; C. Ip, "Kelly Lovell Helps Youth Discover their Voice: Coldlakesun.com, May 27, 2015, h ttp://www.cold lakesun.com/ 201 5/05/ 27 / kelly-lovell - hel ps·youth· discover· the ir·voice; and B. Vrbanac, *Waterloo Youth Motiva tor Kelly Lovel l Recognized by the Queen,• Water/00Cl1ro11icle.ca, Dece m be r 9 , 2015, https://www. wa te rlooch ro nicle.ca/ news-s tory/ 6166021-waterloo-youth - motivator-kel ly-lovel J. recognized-by-the-queen/ .

25 M. Weber, The Theory of Social and Economic Orga,iization, trans. A. M. Henderson and T. Parsons (New York: The Free Press, 1947).

26 J. A. Conger and R. N. Kanu ngo, ' Beh aviora l Di mensions of Charismatic Leadership,• in Cliarismalic Leaders/tip, ed. J. A. Conger and R. N. Kanungo (Sa n Francisco: Jo.ssey-Bass, 1988), p. 79; and A.-K. Samnani and P. Singh, "\<\lhen Leaders Victi m ize: The Role of Charismatic Leaders in Faci litating Croup Pressures,• Leadership Quarter/)' 24, no. 1 (February 2013), pp. 189- 202.

27 V. Seyra nia n a nd M. C. Bl igh , "Pres ident ial Ch a ris matic Leadership: Exploring the Rheto ric of Social Change,• Leadership Quarterly 19, no. I (2008), pp. 54- 76.

28 A. Xen ikou, "The Cognit ive a nd Affect ive Com po nen ts of O rganisational Identi ficat io n: The Role of Perceived Support Values and Cha rismatic Leadership, · Applied PS)"cltology: An llllemational Review 63, no. 4 (2014), pp. 567-588.

29 P. A. Vlachos, N. C. Pa nagopou los, and A. A. Rapp, "Feeling Good by Doing Good: Employee CSR-Induced Attributions, Job Satisfaction, and the Role of Cha rismatic Leadership,• Journal of Business Et/tics 118, no. 3 (2013), pp. 577- 588.

30 A.H. B. De Hoogh and D. N. Den Hartog, "Neuroticism and Locus of Control as Moderato rs of the Relationships o f Charismatic and Autocratic Leadership with Burnout: Journal of Applied Psrcltology 94, no. 4 (2009), pp. 1058- 1067.

31 F. Coh en, S. Solo mon, M. Maxfield , T. Pyszczynski, a nd J. G reenberg, "Fata l Attraction: The Effects of Mortality Salience on Eva luations of Charism atic, Task-O riented, and Relation.,hip- O rie n ted Leaders, · Psycltological Science, Decem ber 2004, pp. 846- 851; and M. C. Ehrhart a nd K. J. Klein, ' Predicti ng Followers' Preferences for Charismatic Leadership: The Influence of Follower Values and Personality,• Leaders/tip Quarterly, Summer 2001, pp. 153- 179.

32 K. Lev ine, R. Mue nch en , a nd A. Brooks, ' Measuri ng Tra nsformational and Ch arisma tic Leadership: W hy Is n ' t Charis ma Measured ?* Commu,iication Mo,iograplis 77, no. 4 (2010), pp. 576-591.

33 A. Erez, V. F. Misangyi, D. E. Johnson, M. A. Le Pine, a nd K. C. Halverson, *Stirring the Hearts of Fol lowers: Charis matic Leadership a< the Transferal of Affect,• Journal of Applied Psyc!wlogy 93, no. 3 (2008), pp. 602- 615. For reviews on the role of vision in leadership, see S. J. Zaccaro, "Visionary and Inspi rational Models of Exerutive Leadership: Empirical Review and Eva luation,* in

596 Endnotes

Tlte Nawre of Executive Leadership: A Conceptual and Empirical A11al)'sis of Success, ed. S. J. Zaccaro (Washington, DC: American Psychological Association, 2001 ), pp. 259- 278; and M. Hauser and R. J. House, "Lead Through Vision a nd Values,• in Handbook of Pri11ciples of Orga11iza1io11al Behavior, ed. E. A. Locke (Malden, MA: Blackwell, 2004), pp. 257-273.

34 D. N. Den Hartog, A. H. 8. De Hoogh, a nd A. E. Keegan, "The Interactive Effects of Belo ngingness a nd Charisma o n Helping and Complia nce, • Journal of Applied PS)'cltologr 92, no. 4 (2007), pp. ll 31- 1139.

35 See, for instance, R. Khurana, Searr;/1i11g for a Corporate Savior: Tiie Irrational Quest for Cltarismaric CEOs ( Princeton, NJ: Princeton University Press, 2002); and J. A. Raelin, "'The Myth of Charismatic Leaders: Trai11i11g & Developmellt, March 2003, pp. 47- 54.

36 8. M. Galvin, D. A. Wa ldman, a nd P. Balthazard, "Vis ionary Commun ication Qualities as Mediators of the Relationsh ip between Narcissism and Attributions of Leader Charisma," Perso1111el Psycl1ologr 63, no. 3 (2010), pp. 509- 537.

37 See, for instance, D. Deichmann and D. Stam, .. Leveraging

Transformational and Transactional Leadership to Cultiva te the Generation of Organiza tion . focused Ideas," Leadership Quarterly 26, no. 2 (2015), pp. 204- 219; H.·J. \,Volfram and L. Gratton, "Gender Role Self-Concept, Categorical Gender, and Transactio nal.Transformational Leadersh ip: Implications for Perceived Workgroup Performance, • Jour11al of Leaders/tip & Orga11izational Swdies 21, no. 4 (2014), pp. 338- 353; and T. A. Judge and R. F. Piccolo, "Transformational and Transactiona l Leadership: A Meta-analytic Test ofTheir Relative Valid ity,· Journal of Applied PS)'cl1olos,•, October 2004, pp. 755-768.

38 A. E. Colbert, M. R. Barrick, and 8. H. Bradley, "Personality and Leadership Composition in Top Management Teams: Implications for Organizational Effectiveness,· Perso11nel Ps)'cltology 67 (2014 ), pp. 351- 387.

39 A. M. Grant, "Lead ing with Mean ing: Beneficiary Contact, Pro.social Impact, and the Performance Effects of Transformational Leadersh ip, • Academ)' of Management Journal 55 (2012), pp. 458-4 76.

40 D. Deich man n and D. Stam, "Leveraging Transformatio nal and Tra nsactiona l Leadership to Cu ltivate the Generation of Organization-Focused Ideas, • Leaders/tip Quarterly 26, no. 2 (2015), pp. 204- 219; and H.·J. \.Volfram and L. Gratton, "Gender Ro le Self-Co ncept, Ca tego rica l Gender, and Tra nsactiona l. T ransformational Leadership: Impl ica tions for Perceived Workgroup Performance,· Joumal of Leaders/tip & Orga11iZ11tional Studies 21, no. 4 (2014), pp. 338- 353.

41 T. R. Hin kin a nd C. A. Sch riescheim, "An Exam ina tio n of 'Non leadersh ip' : From Laissez-Fai re Leaders h ip to Leader Reward Omission and Punishment Omission,• Joumal of Applied Ps)'clwlog)' 93, no. 6 (2008), pp. 1234- 1248.

42 Y. Li ng, Z. S imsek, M. H. Lubat kin, a nd J. F. Ve iga, "Transformational Leadersh ip's Role in Promoting Corporate

Entrepreneurship: Examining the CEO-TMT Interface: Academy of Ma11agement Journal 51, no. 3 (2008), pp. 557-576.

43 X. Zha ng a nd K. M. Barto l, "Li nking Em powering Leadershi p and Em p loyee Crea tivity: T he Infl uence of Psych o logical Empowermen t, Intrinsic Motiva tion, and Creative Process Engagement: Academ)' of Ma11agement Joumal 53, no. I (2010), pp. 107- 128.

44 S. A. EisenbeiS and S. Boerner, "A Double-Edged Sword: Transformational Leadership a nd Individual Creativity,· Britislt Joumal of Ma11ageme11t 24 (2013), pp. 54- 68.

45 A. E. Colbert, A. E. Kristof-Brown, 8. H. Bradley, and M. R. Barrick, "CEO Transformational Leadership: The Role of Goal Importance Congruence in Top Management Teams," Academy of Management Joumal 51, no. I (2008), pp. 81- 96.

46 D. Z.Ohar and 0. Tenne-Gazit, "1'ra n.,formational Leadership and Croup Interaction as Climate Antecedent.~: A Social Network Ana lysis, · Journal of Applied Psyc/Jolog)' 93 , no. 4 (2008), pp. 744- 757.

47 R. T. Keller, "Transformational Leadership, Initiating Structure, and Substitutes for Leadership: A Longitudina l Study of Research and Development Project Team Performance,• Joumal of Applied PS)'cltologr 91, no. I (2006), pp. 202- 210.

48 G. Wa ng, I. O h, S. H . Court righ t, a nd A. E. Colbe rt, "Transformationa l Leadership and Performance across Criteria and Levels: A Meta-analytic Review of 25 Years of Research,• Group a11d Organizatio11 Ma11agement 36, no. 2 (20ll ), pp. 223- 270.

49 Y. Ling, Z. Simsek, M. H. Lubatkin, and J. F. Veiga, 'The Impact of Transformational CEOs on the Performance of Small- to Medium. Sized Firms: Does Organizational Context Matter?" Joumal of Applied PS)'cl1ologr 93, no. 4 (2008), pp. 923- 934.

50 X. Wang and J. M. Howell, "Exploring the Dual-Level Effects of Transformationa l Leaders hip on Followers,• Journal of Applied PS)'cltologr95, no. 6 (2010), pp. 1134- 1144.

51 N. Li, D. S. Chiaburu, 8. L. Kirkman, and Z. Xie, "Spotlight on the Followers: An Examination of Moderators of Relationships between Transformat iona l Leadersh ip and S ubord inates' Citizenship and Taking Charge: Personnel PS)'cl1ologr 66 (2013), pp. 225-260.

52 R. J. House, M. Jav idan , P. Ha nges, a nd P. Dorfman, "Understanding Cultures and Implicit Leadership Theories across the Globe: An Introduction to Project GLOBE; Joumal of World Business, Spring 2002, pp. 3- 10.

53 D. E. Carl and M. Javidan, "Universality of Charismatic Leadership: A Multi-Nation Study" (paper presented at the National Academy of Management Conference, Washington, DC, August 2001 ) , p. 29.

54 J. Schaubroeck, S. S. K. La m, a nd S. E. Cha, "Embracing Transformationa l Leadersh ip: Tea m Values a nd th e Impact of Leader Behavior o n Team Performance, · Journal of Applied PS)'cltologr 92, no. 4 (2007) , pp. 1020- 1030.

55 J. Liu, 0. Siu, a nd K. Shi, "Transformatio nal Leadersh ip and Em ployee Well-Being: The Mediating Role of Trust in the Leader and Self-Efficacy; Applied Ps)'clwlogr: A11 /11ten1ational Review 59, no. 3 (2010), pp. 454-4 79.

56 S. J. Shin a nd J. Zho u, "Transformat iona l Leade rship, Conservation, and Creativity: Evidence from Korea,,. Academy of Ma11age111ent Jour11al , Dece mbe r 2003, pp. 703 - 714; V. J. Ga rcia-Morales, F. J. Llo re ns-Montes, and A. J. Verdu-Jover, 'The Effects of Transformational Leadersh ip on Organizational r erformance th rough Knowledge and Innova tion," British Joumal of Manageme11t 19, no. 4 (2008), pp. 299- 313; and S. A. EisenbeiS, D. van Knippenberg, and S. Boerner, "Transformational Leadership and Tea m Innovation: Integrating Team Climate Principles,· Journal of Applied Psychology 93, no. 6 (2008), pp. 1438- 1446.

57 F. 0. \.Valum bwa, 8. J. Avolio, and W. Zhu, "How Tran.,formational Leadership Weaves Its Influence on Individual Job Performance: The Ro le of Identification and Efficacy Beliefs,• Perso1111el PS)'cltologr 61, no. 4 (2008), pp. 793- 825.

58 Y. Gong, J. Huang, and J. Farh, "Employee Learning Orientation, Transformational Leadership, and Em ployee Creativity: The Mediati ng Ro le of Employee Creative Self-Efficacy,· Academy of Ma11ageme11t Journal 52, no. 4 (2009), pp. 765-778.

59 J. E. Bono a nd T. A. Judge, "Self-Concordance at Work: Toward Understa nd ing th e Motivationa l Effects of Transformational Leade rs,· Academy of Ma11age111e111 Jour11al, October 2003, pp. 554- 5 71; Y. Berson and 8. J. Avol io , "Tra nsformational Leadersh ip a nd the Dissemi natio n of Orga nizationa l Goals: A Case Study of a Telecommunication Firm,• Leaders/tip Quarterly, October 2004, pp. 625- 646; and J. Schaubroeck, S.S. K. Lam, and

S. E. Cha, "Embraci ng Transformationa l Leadership: Team Values and the Impact of Leader Behavio r on Team Perfo rmance,• Journal of Applied Psycl1olog,• 92, no. 4 (2007), pp. 1020- 1030.

60 S. Auh, B. Mengue, and Y. Jung, ·unpacking the Relationsh ip between Empoweri ng Leaders h ip and Service. O rien ted Citizenship Behavio rs: A Mu lti level Approach,• Jounial of the Academy of Marketing Science 42 (2014), pp. 558- 579.

61 M. Birasnav, "Knowledge Management and O rgan izationa l Performance in the Service Industry: The Role ofTransformational Leadership Beyond th e Effects of Transactional Leadership,· Journal of Business Research 67, no. 8 (2014), pp. 1622 - 1629; H. Hetland, G. M. Sa ndal, and T. B. Johnsen, •Burnout in the Info rm atio n Tech no logy Secto r: Does Leadersh ip Matter?" European Journal of Work and Organizational Psrchology 16, no. I (2007), pp. 58- 75; and A. K. Tyssen, A. Wald, and S. Heidenreich, •Leadership in the Context of Temporary O rganizations: A Study o n the Effects of Transactiona l and Transformational Leadership o n Followers' Commitment in Projects,• Journal of Leadership & Organizational Studies 21, no. 4 (2014), pp. 376- 393.

62 Vignette based on "Startup Canada Podcast: Lovell Corp. CEO on ln.,pi ring Young Entrepreneurs,· Betakit, April II, 2017, http:// beta kit. com/ startu p-canad a· pod cast· I ovel I -corp-ceo-0 n · i n.,p i ring· young-entrepreneurs/.

63 See B. J. Avolio, ""· L Gardner, F. 0. Walum bwa, F. Luthans, and D. R. May, · unlocking the Ma,k: A Look at the Process by Which Authentic Leaders Impact Follower Attitude.< and Behavio rs,· Leadership Quarterly, December 2004, pp. 801 - 823; W. L. Gardner and J. R. Schermerhorn Jr., •performance Gains through Positive Organizational Behavior and Authentic Leadersh ip," Organizntional Dynamics, August 2004, pp. 270- 281; and M. M. Novicevic, M. G. Ha rvey, M. R. Buckley, J. A. Brown-Radford, a nd R. Evans, •Authent ic Leadership: A Historical Perspective,· Journal of Leadership and Organizational Behavior 13, no. 1 (2006), pp. 64- 76.

64 • Expect to Make a Difference, Be an Authent ic Leader and Have In tegrity; York University, October 22, 2014, h ttp://yfile. news. yo rku.ca/2014/ 10/22/expect-to-m ake-a-di fference-be- a n-authentic-leader· have· integrity/.

65 B. P. Owens and D. R. Hekma n, "Model ing How to G row: An l nd uctive Exam inat ion of Hu mb le Leade r Behaviors, Contingencies, and Outcomes," Academy of Management Jountal 55 (2012), pp. 787- 818.

66 K. M. Hmieleski, M. S. Cole, and R. A. Baron, •shared Authentic Leadership and New Venture Performance,• Journal of Managemelll, September 2012, pp. 1476- 1499.

67 R. Hies, F. P. Morgeson, and J. D. Nah rgang, •Authentic Leadership a nd Eudaemonic Wellbeing: Understand ing Leader-Follower O utcom es,• Leadership Quarter/)' I 6 (2005), pp. 373- 394.

68 J. Stouten, M. van Dijke, and D. De Crem er, •Ethical Leadersh ip: An Overview and Future Perspectives," Journal of Perso1rnel Psyc/10/og)' 11 (2012). pp. 1- 6.

69 J. M. Schaubroeck, S. T. Hannah, B. J. Avolio, S. VJ. J. Kozlowski, R. G. Lord, L. K. Trevino, N. Dimotakis, and A. C. Peng, "Embedding Eth ical Leadership with in and across O rganizatio n Levels," Academy of Management Journal 55 (2012), pp. 1053- 1078.

70 K. M. Kacmar, D. G. Bachrach, K. J. Ha rr is, a nd S. Zivnuska, • Foste ring Good Ci t izenship th rough Eth ica l Leadership: Explo ring the Moderating Role of Gender and Organizationa l Politics,• Journal of Applied Psychology 96, no. 3 ( May 2011 ) , pp. 633- 642; and F. 0. Walumbwa a nd J. Schaubroeck, • l eader Personality Traits and Employee Voice Behavior: Mediati ng Role.< of Ethical Leadersh ip and \<\fork Gro up Psychological Safety,· Joumal of Applied Ps)'chology 94, no. 5 (2009), pp. 1275- 1286.

71 D. M. Mayer, K. Aqu ino, R. L. G reenbau m, and M. Kuenzi, ·who Displays Ethical Leadership, and \<\lhy Does It Matter?

Endnotes 597

An Exa mination of Antecedents and Consequences of Ethical Leadership," Academy of Managemelll Joumal 55 (2012), pp. I 51- 171.

72 D. van Knippenberg, D. De Crem er, a nd B. van Knippenberg, •Leadership and Fairnes.<: The State of the Art,• European Joumal of Work and Organizational Psychology 16, no. 2 (2007), pp. 113- 140.

73 M. E. Brown and L. K. Trev iiio, "Socialized Cha rism a tic Leadership, Value.< Congruence, and Deviance in Work G roups,• Journal of Applied Psycl1olog,• 91, no. 4 (2006), pp. 954- 962.

74 M. E. Brown a nd L. K. T revi iio, "Leader-Fol lower Val ues Congruence: Are Socia lized Charis matic Leaders Better Ab le to Achieve It?' Joumal of Applied Psychology 94, no. 2 (2009), pp. 478- 490.

75 S. A. Eise nbe i& and S. R. Giessner, "The Em ergence a nd Maintenance of Ethical Leadership in O rganizations,· Joumal of Personnel Ps)'c/10/ogy 11 (2012), pp. 7- 19.

76 D. van Dierendonck. ·s.ivant Leadership: A Review and Synthesis,•

Joumal of Managemelll 37, no. 4 (2011 ). pp. 1228- 1261.

77 S. J. Peterso n, F. M. Ga lv in, a nd D. Lange, "CEO Servant Leadersh ip: Exploring Executive Characteristics and Fi rm Performance,• Personnel Ps)'c/10/og)' 65 (2012). pp. 565- 596.

78 F. \<\lalumbwa, C. A. Hartnell, and A. Oke, ·servant Leadershi p, Procedural Justice Climate, Service Climate, Employee Attitudes, and Organ iza tional C itizenship Behavior: A Cross. Level Investigat ion,• Journal of Applied Psycholog)' 95, no. 3 (2010), pp. 517- 529.

79 D. De Crem er, D. M. Mayer, M. van Dijke, B. C. Schouten, a nd M. Bardes, "\<\/hen Does Self.Sacrificial Leadership Motivate Prosocial Behavior? It Depends o n Followers' Prevention Focus," Jountal of Applied Psycl1olog,• 2009, no. 4 (2009), pp. 887- 899.

80 J. Hu and R. C. Liden, "Antecedents of Team Potency and Tea m Effectiveness: An Examination of Goal a nd Process Clarity and Serva nt Leadersh ip,· Journal of Applied Psychology, 96, no. 4 (July 2011 ), pp. 851 - 862.

81 M. J. Neubert, K. M. Kacm ar, D. S. Carlson, L. B. Chonko, a nd J. A . Roberts, "Regulatory Focus a< a Mediator of the Influence of Initiating Structure and Servant Leadership on Employee Behav ior,• Journal of Applied Ps)'c/10/ogy 93, no. 6 (2008), pp. 1220- 1233.

82 R. C. Liden, S. J. \<\layne, C. Liao, and J. D. Meuser, "Servant Leadership and Serving Culture: Influence o n Individual and Unit Performance,· Academ)' of Management Journal 57, no. 5 (2014), pp. 1434- 1452.

83 See, for exam ple, L. J. Zachary, The Melllor's Guide: Facilitating Effective Leaming Relationships (San Francisco: Jos.,ey-Bass, 2000); M. Murray, Beyond the Myths and Magic of Mentoring: How 10 Facilitate an Effective Mentoring Process, rev. ed. (New York: Wiley. 2001 ); a nd F. Warner, ' Inside Intel's Mento ring Movem ent,· Fast Onnpany, April 2002, pp. 116- 120.

84 C. R. Wanberg, E. T. Welsh, and S. A. Hezlett, 'Mentori ng Research: A Review and Dynamic Process Model," in G. R. Ferris and J. J. Martocch io (eds.), Research in Personnel and Human Resources Managemelll, vol. 22 (Greenwich, CT: Elsevier Science, 2003), pp. 39- 124; and T. D. Allen, "Protege Select ion by Mento rs : Contribut ing Individual a nd Organizational Factors,· Joumal of Vocational Behavior 65, no. 3 (2004), pp. 469- 483.

85 See, for exam ple, D. B. Turban T. v,,1_ Dougherty, and F. K. Lee, •Gender, Race, and Perceived Similarity Effects in Developmental Relationships: The Moderating Role of Relationship Duration,• Journal of Vocational Behavior, October 2002, pp. 240- 262.

86 J. U. Chun, J. J. Sosik, and N. Y. Yun, •A Longitud inal Study of Mentor and Protege O utco mes in Formal Mento ring Relationships," Joumal of Organizntional Behavior, November 12, 2012, pp. 35- 49.

598 Endnotes

87 B. R. Ragins and J. L. Cotton, ' Mentor Functions and Outcomes: A Comparison of Men and Women in Formal a nd Informa l Mentoring Relationsh ips,• Joun1al of Applied Psychology, August 1999, pp. 529- 550; and C. M. Underhill, "The Effectiveness of Mentoring rrogra ms in Corporate Setti ngs: A Meta-ana lytical Review of the Literature,• Joumal of Vocational Behavior 68, no. 2 (2006), pp. 292- 307.

88 T. D. Allen, E.T. Eby, and E. Lentz, 'The Relationsh ip between Formal Mentoring Program O,aracte.ri,;:tics and Perceived Program Effectiveness: Personnel Psychology 59 (2006) , pp. 125- 153; T. D. Allen, L. T. Eby, and E. Lentz, •Mentorship Behaviors and Mentorship Quality Associated with Formal Mentoring Programs: Clo.sing the Gap between Research and Practice.• Joumal of Applied Psychology 91, no. 3 (2006), pp. 567- 578; and M. R. Parise and M. L. Forret, •Formal Mentoring Programs: The Relationship of Progra m Design and Support to Mentors' Perception., of BenefiL< and Costs," Journal of Vocational Behavior 72, no. 2 (2008) , pp. 225- 240.

89 L. T. Eby and A. Lockwood, • proteges' and Mentors' Reactio n., to Participating in Formal Mentoring Programs: A Qualitative Investigatio n, · Joumal of Vocational Behavior 67, no. 3 (2005), pp. 441 - 458; G. T. Chao, "Formal Mentoring: Lessons Learned from Past Practice,· Professional Psychology: lwsean;h and Practice 40, no. 3 (2009), pp. 314- 320; and C. R. Wanberg, J. D. Kammeyer- Mueller, and M. Marchese, •Mentor a nd Protege Predictors and Outcomes of Mentoring in a Formal Mentoring Program," Joun1al of Vocational Behavior 69 (2006), pp. 410- 423.

90 M. K. Feeney and B. Bozeman, "Mentoring and Network T ies: Human Relations 61, no. 12 (2008), pp. 1651- 1676; N. Bozionelos, "'I ntra-O rganizational Network Resources: How They Relate to Career Success and O rganizational Commitment,· Personnel Review 37, no. 3 (2008), pp. 249- 263; and S. A. Hezlett and S. K. Gibson, "Linking Mentoring a nd Socia l Capi ta l: Implication., for Career and Oiganization Development, • Advances in Developing Human Resources 9, no. 3 (2007), pp. 384- 412.

91 Based on B. Ca rmody, "Reth inking Youth Empowerment as Generatio n Z Blows You r Mi nd," Inc., June JO, 2015, https:// www.inc.com/ bi I I-ca rm ody/ reth i nki ng-youth-e mpowerm en t· as-generat ion-z-blows-you r-m ind .h tm l; and h ttp://www. lovellcorporation.com/ lovell-corp-launches-global-youth-book- project-iyd-2017 /.

92 The Jossey-Bass Reader on Educational Leadersh ip, 2nd ed. (San Francisco: \.Viley & Sons, 2007).

93 See, for insta nce. B. Schyns, J. Felfe, and H. Blank, "Is Charisma Hyper. Romanticism? Empirica l Evidence from New Data and a Meta-a nalysis," Applied Ps)'c/10/ogy: An International Review 56, no. 4 (2007), pp. 505- 527.

94 M. J. Martinko, P. Harvey, D. Sikora, a nd S. C. Douglas, •perceptions of Abusive Supervision: The Role of Subordinates' Attribution Styles,· Leadership Quarterly, August 2011, pp. 751- 764.

95 M. C. Bligh, J. C. Kohles, C. L. Pearce J. E. Justin, a nd J. F. Stovall, "'When the Romance Is Over: Follower Perspective.Ii of Aversive Leadership,• Applied Ps)'clwlogy: An International Review 56, no. 4 (2007), pp. 528- 557.

96 B. R. Agle. N. J. Nagarajan, J. A. Sonnenfeld, and D. Srinivasan, "Does CEO Charisma Matter!" Academy of Management Joumal 49, no. I (2006), pp. I 61- 174.

97 M. C. Bligh, J. C. Kohles, C. L. Pearce J. E. Justin, a nd J. F. Stovall, "When the Romance Is Over: Follower Perspective.Ii of Aversive Leadership,• Applied Ps)'chology: An International Review 56, no. 4 (2007), pp. 528- 557.

98 B. Schyns, J. Fe lfe, and H. Bla nk, · 1s Charis ma Hype r- Romanticism? Empirical Evidence from New Data and a Meta· a nalysis," Applied Ps)'chology: An International Review 56, no. 4 (2007), pp. 505- 527.

99 A. S. Ro.sette, G. J. Leonardell i, and K. W. Ph illips, 'The Wh ite Standard: Racial Bias in Leader Categorization,• Joumal of Applied Psychology 93, no. 4 (2008), pp. 758 - 777.

100 A. M. Koenig, A. H. Eagly, A. A. Mitchell, and T. Ristikari, •Are Leader Stereotypes Masculine? A Meta-analysis of Three Research Paradigms," Psychological Bulletin 137, no. 4 (2011), pp. 616- 642.

101 M. Van Vugt and B. R. Spisak, •sex Differences in the Emergence of Leadership during Competitions within and between Groups,• Psychological Science 19, no. 9 (2008), pp. 854- 858.

102 M. Van Vugt and B. R. Spisak, •5ex Differences in the Emergence of Leadership during Competitions within and between Groups, • Psychological Science 19, no. 9 (2008), pp. 854- 858.

103 R. E. Silverman, "Who's the Boss? There Isn' t O ne,• Wall Street Journal, June 20, 2012, pp. Bl, 88.

104 S. D. Dionne, F. J. Yammarino, L. E. Atwater, and L. R. Ja mes, •Neutralizi ng Substitutes for Leadersh ip Theory: Leadership Effects and Common-Source Bias,• Journal of Applied Psychology, 87 (2002), pp. 454-464; a nd J. R. Vi lla, J. P. Howell, P. \.V. Dorfman, a nd D. L. Dan iel, "Problems with Detecting Moderato rs in Leadersh ip Research Using Moderated Multiple Regression,· Leadership Quarter/)' 14 (2002), pp. 3- 23.

105 L. A. Hambley, T. A. O'Nei ll, and T. J. B. Kline, "Virtual Team Leadership: The Effects of Leadership Style and Communication Med iu m on Tea m In te racti o n S tyles and Outcomes, " OrganiZ1Jtional Behavior and Human Decision Processes 103 (2007), pp. 1- 20; and B. J. Avol io and S.S. Kahai, 'Adding the 'E' to E-Leadership: How It May Impact Your Leadership,• Organizational D)•namics 31, no. 4 (2003), pp. 325- 338.

106 S. J. Zaccaro and P. Bader, "E-Leadership and the Challenge.< of Leading E-Tea ms: Minimizing the Bad and Maximizing the Good,• Organizational Dynamics 31, no. 4 (2003), pp. 381- 385.

107 C. E. Naquin and G. D. Paulson, ·online Bargaining and Interpersonal Trust," Joumal of Applied T's)~hology, Februal)' 2003, pp. 113- 120.

108 M. Javida n, P. VI'. Dorfman, M. S. de Luque, and R. J. House, · in the Eye of the Beholder: Cross Cultura l Lessons in Leadership from Project GLOBE,• Academy of Management Perspectives, February 2006, pp. 67- 90.

109 T. Menon, J. Sim, J. Ho-Ying Fu, C. Chiu, and Y. Hong, •Blazing the Trail versus Trailing the Group: Culture and Perception., of the Leader's Position, " Orgmiizntio,ial Behavior and Human Decision Processes 113, no. I (2010), pp. 51 - 61.

110 Based o n Z. E. Franco, K. Blau, and P. G. Zimbardo, •Heroism: A Conceptual Analysis and Differentiation Between Heroic Action and Altru ism," Review of General Psycholog)' 15, no. 2 (2011 ), pp. 99- 113; 0 . Dorell, •At Nuke Pl ant, Heroes Emerge," USA Toda)', Ma rch 25 , 2011 , pp. IA, 2A; G. R. Goetha ls and S. C. All ison, •Making He roes: T he Co nstruction of Courage, Competence, and Virtue.· Advances in Experimemal Psychology 46 (2012), pp. 183- 235; L. J. Walker, J. A. Frimer, and VI'. L. Dunlop, 'Varieties of Moral Personality: Beyond the Banality of Heroism,• Joumal of Personality 78, no. 3 (2010), pp. 907- 942; and J. Lehrer, •Are Heroes Born, o r Can They Be Made?' Wall Street Journal, December JI, 2010, p. C12.

ill Justin Ross Hartfield website, http://\\~vw.justinhartfield.me; B. \.Veiss, 'Thank You for Smoking- Marijuana,• Wall Street Journal, Ma rch 15- 16, 2014, All; K. Wagner, "\.Veedmaps CEO Justi n Hartfield May Soon Be America's Weed Guy," Maslwble, May 16, 2014, http://\\~vw.mashable.com/ 2014/05/ 16/ weedmaps-ceo-jus- tin-hartfield/; and L Phillips, •Drop in IQ Linked to Heavy Teenage Cannabis Use,· Nature, August 28, 2012, https://www.nature.com/ news/ drop-i n-iq-1inked-to-heavy-teenage-cannabis-tLse-1.11278.

112 Based on B. O' Keefe, J. Birger, a nd D. Burke, "Battle Tested," For111ne, March 22, 2010, pp. 108- 118; B. Vl' hitmore, •Hiri ng Military Vetera ns Is Good Busi ness, · H11nting1on WV Herald· Dispatch, November 6, 2010, http://w,vw.herald-d ispatch.com;

B. Wansink. C. R. Payne, and K. van lttersum, • profiling the Hero ic Leader. Empirical Le.s.sons fro m Combat-Decorated Veterans of World War II," Leadership Quarterly 19, no. 5 (2008), pp. 547- 555; and T. E. Ricks, "vl'hat Ever Happened to Accountability?" Haroard Bminess Review, October 2012, pp. 93- 100.

113 Based o n M. Buckingham, •Leadership Development in the Age o f the Algorithm," Haroard Business Review, June 2012, pp. 86- 94; M. D. Watkins, ·How Managers Become Leaders,· Harvard Business Review, June 2012, pp. 64- 72; and J.M. Podolny, •A Conversation with James G. March on Learning About Leadership, · Academ)' of Management Learning & Education 10 (2011 ), pp. 502- 506.

114 Based o n J. M. Howell and P. J. Frost, •A Laborato ry Study o f Charismatic Leadership," Organizational Behavior and Huma,1 Decision Processes, April 1989, pp. 243- 269.

US Based on V. H . Vroom, "A New Look at Managerial Decision Making,• Organizational D)'namics, Spring 1973, pp. 66- 80. \.Yith permission.

Chapter 12

1 Vignette based on E. Johnson, "'I Vslill Do Anything I Can to Make My Goa l': TD Teller Says Customers Pay Price for 'Unrea listic' Sales Targets,• CBC News, March 6, 2017, http://www.cbc.ca/ news/ canada/ british-columbia/ td-tellers-desperate-to -meet-increasing- sales-goals-1.4006743, and E. Johnson, •'\.Ye Do It because O ur Jobs Are a t Stake' : TD Bank Employees Admit to Breaking the Law for Fear of Being Fired,· CBC News, March 10, 2017, http:/ /www. cbc.ca/ news/ business/ td-ba nk-em pl oyees-adm it· tO· b reaking- law-1.40165 69.

2 E. Sh afi r and R. A. LeBoeuf, •Ratio nality," Annual Review of Psycholog)' 53 (2002), pp. 491- 51 7.

3 For a review o f the rationa l decision.making model, see M. H. Bazerman and D. A. Moore, Judgment in Managerial Decision Making, 7th ed. ( Hoboken, New Jersey: Wiley, 2008).

4 CIBC, "Donation., and Sponsorship Funding Guidelines,· accessed

November, 2017, https://\\~vw.cibc.com/ en/about-cibc/ corporate- responsibility/ community-and-sponsorship/ funding-guidelines. h tml.

5 J. G. March, A Primer on Decision Making (New York: The Free Press, 2009); and D. Hardman and C. Harries, "How Rational Are We? " Psychologist, February 2002, pp. 76- 79.

6 Vignette based on E. John.son, "'I Vslill Do Anything I Can to Make My Goa l': TD Teller Says Customers Pay Price for 'Unrea listic' Sa le., Ta rgets," CBC News, March 6 , 2017, h ttp://"~'~v.cbc.ca/ news/ canada/ british-col um b i a/ td-tel I ers-desperate-t O· m eet· increasing-sales-goals-1.4006743, and M. King, •How Technology Has Turned Tellers into Sellers," Globe and Mail, Ma rch 14, 201 7, h t t ps:/ / beta. theglobea nd m ai I. com/ report -o n -bus iness/ rob- com men ta ry / how -tech no logy-has-turned· tel I ers-in to -sellers/ article34297345/

7 M. H. Bazerman and D. A. Moore, Judgment in Managerial Decision Making, 7th ed. (Hoboken, NJ: Wiley, 2008).

8 J. E. Russo, K. A. Carlson, and M. G. Meloy, · c hoosing an Inferio r Alternative, · Psychological Science 17, no. 10 (2006), pp. 899- 904.

9 See, for example, L R. Beach, The Psycholog)' of Decision Making (Thousand Oaks, CA: Sage, 1997).

10 N. Halevy and E. Y. Chou, •How Decisions Happen: Foca l Po ints and Bli nd Spots in Interdependent Decision Making, • Joun,al of Personality and Social Psyclwlos,• 106, no. 3 (2014 ), pp. 398- 41 7; D. Kahnem an, •Maps of Bounded Rationality: Psychology for Behavioral Economics," 11,e American Economic Review 93, no. 5 (2003), pp. 1449- 1475; a nd J. Zh ang, C. K. Hsee, and Z. Xiao, '111e Majo rity Rule in Individual Decision Making,• Orga11izatio11al Behavior and Huma11 Decisio11 l'roa,sses 99 (2006), pp. 102- 111.

End notes 599

11 G. Gigerenzer, "\.Yhy Heuristics Work, · Perspectives 011 Ps)'chological Science 3, no. 1 (2008), pp. 20- 29; and A. K. Shah and D. M. Oppenhe imer, •Heuristics Mad e Easy: An Effo rt- Reduction Framework." Psychological Bulleti11 134, no. 2 (2008), pp. 207-222.

12 See A. \¥. Kruglanski and G. Gigerenzer, • intuitive a nd Deliberate Judgmen Ls Are Based on Common Principles,• Psrcl1ological Review 118 (2011 ), pp. 97- 109.

13 E. Dane and M. G. Pratt, "Exploring Intu it ion and Its Role in Managerial Decision Making," Academ)' of Management Review 32, no. I (2007), pp. 33- 54; and J. A. Hicks, D. C. Cicero, J. Trent, C. M. Burton, and LA. King, ' Positive Affect, Intuition, and Feelings of Meaning,• Journal of Personality a11d Social Psycl1olos,• 98 (2010), pp. 967- 979.

14 Based on P. D. Brown, "Some Hunches About Intuition,• New York Times, November 17, 2007, p. 85.

15 Based o n D. Delaney, C. Guild ing, and L. McMa nus, "The Use of Intu ition in the Sponsorsh ip Decision Making Process," Omtemporary Ma11agement Research 10, no. 1 (2014), pp. 33- 60.

16 B. D. Dunn and H. C. Ca lton, "Listeni ng to Your Heart: How lnte.roceptio n Shapes Emotio n Experience and lntuitive Decisio n Maki ng," Psychological Scie11ce 21, no. 12 (December 2010), pp. 1835- 1844.

C. Akinci and E. Sad ler-Sm ith, · intuition in Ma nagemen t Research: A H istorical Review," lntentational Journal of Aifanagement Reviews 14 (2012), pp. 104- 122.

S. r. Robbins, Decide & Conquer: Making Wi,ming Decisions mid Taki11g Co11trol of Your Life (Upper Saddle River, NJ: Financial Ti mes/ Prentice Hall, 2004), p. 13.

Based on P. Cohen, "Sta nd Still: Use Penalty-Kick W isdom to Make Your Decisions," National Post, March 8, 2008, p. ™ '9.

S. Ludwig and J. Nafziger, · s e liefs about Overconfidence,• 11ieory and Decision, April 2011 , pp. 475- 500.

S. Pious, 71te Psycholog)' of Judgme111 and Decision Maki11g (New York: McGraw-Hill, 1993), p. 217.

C. R. M. McKenzie, M. J. Liersch, and I. Yaniv, "Overconfidence in Interval Estimates: What Does Expertise Buy You,· Organizatio11al Behavior a11d Human Decisio11 Processes 107 (2008), pp. 179- 191.

R. P. Larrick, K. A. Burson, and J. B. Soll, · social Comparison and Confidence: When Thinking You' re Better Than Average Predicts Overconfidence (and When It Does Not)," Organizntio11al Behavior and H11ma11 Decision Processes 102 (2007) , pp. 76- 94.

K. M. H mieleski and R. A. Baron, "Entrepreneurs' Optimism and New Venture Perfonnance: A Social Cognitive Perspective, " Academ)' of Ma11agement Joumal 52, no. 3 (2009), pp. 473- 488.

R. Frick and A. K. Smith, "Overconfidence Ga m e, · Kipli11ger's Personal Fi11ance 64, no. 3 (2010), pp. 23.

See, for insta nce, J. P. Simmons, R. A. LeBoeuf, and L. D. Nelson, '111e Effect of Accuracy Motivation on Anchoring and Adjustment: Do People Ad just from Th eir Provided Ancho rs?" Journal of Personality a11d Social Ps)'cltolog)' 99 (2010), pp. 917-932.

J. S. Hammond, R. L Keeney, and H. Raiffa, Smart Clwius (Bo.ston: H BS Press, 1999), p. 191.

C. Janiszewski and D. Uy, "Precision of the Anchor Influences the Am ount o f Adjustment," Psrchological Science 19, no. 2 (2008), pp. 121- 127.

See R. S. Nickerson, "Con firmation Bias: A U biquitous Phenomenon in Many GuLses, • Review of Ge11eral Ps)'cholog)', June 1998, pp. 175- 220; and E. Jonas, S. Schultz.Hard t, D. Frey, and N. Thelen, "Confirrnation Bias in Sequential lnforrnation Search after Preli minaty Decisions,• Joumal of Persona/it)' and Social Psycholog)', April 2001, pp. 557-571.

B. Nyha n a nd J. Rei tler, "'A'hen Corrections Fa il: The Persistence of Political Mispercept ions," Political Behavior 32, no. 2 (2010), pp. 303- 330.

600 En dnotes

31 T. rachur, R. Hertwig, and F. Steinma nn, "How Do reople Judge Risks: Availability Heuristic, Affect Heuristic, o r Both?" Journal of Experimental Ps)'clwlogy: Applied 18 (2012), pp. 314- 330.

32 See B. M. Staw, "The Escalation of Com mitment to a Course of Actio n: Academy of Management Review, October 1981 , pp. 577- 587; and H. Moon, "Looking Forward and Looking Back: Integrating Completion a nd Sunk-Cost Effects within a n Escalation-of-Commitment r rogres., Decision,• Journal of Applied Psyclwlog)', February 2001, pp. 104- 113.

33 T. Schultze, F. r feiffer, and S. Schulz-Hardt, "Biased Information Processing in the Escalation Paradigm: Information Search and Information Eva luation as Potential Mediators of Escalating Commitment: Journal of Applied Psyclwlogy97 (2012), pp. 16- 32.

34 D. J. Sleesman, D. E. Conlon, G. McNamara, a nd J. E. Miles, "Clean ing Up the Big Muddy: A Meta-analyt ic Review of the Dete rmina nts of Escalation of Comm itme nt," Academy of Management Journal 55 (2012), pp. 541- 562.

35 D. J. Sleesman, D. E. Conlon, G. McNamara, a nd J. E. Miles, "Clean ing Up the Big Muddy: A Meta-analyt ic Review of the Dete rmina nts of Escalation of Comm itme nt," Academy of Management Journal 55 (2012), pp. 541- 562.

36 H. Drummond, "Escalation of Commitment: \,Vh en to Stay the Course?" Tlte Academy of Management Perspectives 28, no. 4 (2014 ), pp. 430- 446.

37 See, for exa mple, A. Ja mes and A. Wells, "Death Beliefs, Superstitious Beliefs and Health Anxiety,· British Journal of Clinical Psyclwlog)', March 2002, pp. 43- 53.

38 S. r . Robbins, Decide & Conquer: Making W inning Decisions and Taking Control of Your Life (Upper Sadd le River, NJ: Fi nancial Times/ Prentice Hall, 2004), pp. 164- 168.

39 K. Gillespie, "Canadian Athlete.<' Superstitious \<\lays,· Toronto S111r, January 24, 2014.

40 See, for exa mple, D. J. Keys and B. Schwartz, "Leaky Rationality: How Research o n Behaviora l Decision Making Challe nges Normative Sta ndards of Rationality,· Psychological Science 2, no. 2 (2007), pp. 162- 180; a nd U. Simonsohn, "Direct Risk Aversion: Evidence from Ris~-y Pro.,pecL< Valued Below Their Worst Outcome,• Psychological Science 20, no. 6 (2009), pp. 686- 692.

41 J. K. Maner, M. T. Cailliot, D. A. Butz, and B. M. Peruche, "Power, Risk, and the Status Quo: Does Power r romote Riskier o r More Conseivative Decision Making," Personality and Social Psychology Bulletin 33, no. 4 (2007), pp. 451 -462.

42 A. Chakraborty, S. Sheikh, and N. Subramanian, "Termination Risk and Managerial Risk Taking, • Journal of Corporate Finance 13 (2007), pp. 170- 188.

43 r. Bryant and R. Dunford, 'The Influence of Regulatory Focus o n Ris~-y Decision-Making, • Applied l's)'chology: An International Review 57, no. 2 (2008), pp. 335- 359.

44 A. J. Po rcelli and M. R. Delgado, "Acute Stress Modulates Risk Taking in Financial Decision Making: Ps)'c/1ological Science 20, no. 3 (2009), pp. 278- 283.

45 R. L. Guilbault, F. B. Bryant, J. H. Brockway, and E. J. Posavac, "A Meta-a nalysis of Resea rch on Hindsight Bias,• Basic and Applied Social Ps)'c/1olog)', September 2004, pp. 103- 117; and L. \.Verth, F. Strack, a nd J. Foerster, "Certa inty a nd Uncertainty: The Two Faces of the Hindsight Bias: Organizational Behavior and Human Decision Processes, March 2002, pp. 323- 341.

46 J. Bell, "The Final Cut?" Oregon Business 33, no. 5 (2010), p. 27.

47 M. Gladwell, "Connecting the Dots,· New Yorker, March JO, 2003.

48 B. L. Bon ner, S. D. Sillito, and M. R. Bauma nn, "Collective Estimation: Accuracy, Expertise. and Extroversion as Sources of Intra.C roup Influence." Organizatio,ial Behavior and Human Decision Processes 103 (2007), pp. 121- 133.

49 See, for example, W. C. Swap and Associates, Group Decision Making (Newbury Park, CA: Sage, 1984).

50 J. S. Chun a nd J. N. Choi, "Members' Needs, lntragroup Conflict, and Group rerformance." Journal of Applied Ps)"chology 99, no. 3 (2014), p. 437.

51 I. L. Ja nis, Groupthink: Psychological Studies of Policy Decisions and Fiascoes, 2nd ed. (Boston: Houghto n Miffl in, 1982).

52 Based on L. Nguyen, "1'arget Corp. Regrets Opening So Ma ny Stores So Quickly in Canada." Canadian Press, August 20, 2014, http ://www.ctvnews.ca/ busi ness/ target-corp-regrets-open ing- so-ma ny-s to res-so-q u ickl y-i n-ca nada- 1. l 967662; M. Healy, "Same-Sto re Sales at Ta rget Canada Tumble II o/o in Second Quarter: CBC News, August 20, 2014, http://www.cbc.ca/ news/ business/same-sto re .sales-at· target·canada-tum ble- 11 · in-second· quarter-1.2741617; "Why Was Target Ca nada Such a Disaster?" Abbotsford Today, May 26, 2014, http://www.abbot.<fordtoday. ca/ why-was-target-ca nada-such-a-disaster/ ; and r. Evans, "1'arget Closes All 133 Stores in Canada, Gel< Credito r Protection." CBC News, January JS, 2015.

53 G. Pa rk and R. r. DeShon, "A Mu ltilevel Model of Minority Opinion Expression and Team Decision-Making Effectiven ess," Journal of Applied Psychology 95, no. 5 (2010), pp. 824- 833.

54 R. Be nabou, "Groupth in k: Co llec ti ve De lusions in O rganizations and Markets," Review of Economic Studies, April 2013,pp. 429- 462.

55 J. A. Goncalo, E. Polman, and C. Maslach, "Can Confidence Come Too Soon? Collective Efficacy, Conflict, and Group rerfo rmance over lime," Organizational Behavior and Human Decision Processes ll 3, no. I (2010), pp. 13- 24.

56 Based o n See N. R. F. Maier, Principles of Human Relations (New York: Wiley, I 952); N. Richardson Ahl finger and J. K. Es.<er, '"resting the Groupthink Model: EffecL< of Pro motio nal Leadership and Conformity Predisposition,• Social Behavior & Personality 29, no. I (2001), pp. 31- 41; and S. Schu ltz-Ha rd t, F. C. Brodbeck, A. Mojzisch, R. Kersch reiter, and D. Frey, "Group Decision Making in Hidden Pro file Situations: Dissent as a Facilitato r fo r Decision Q uality,• Journal of Personality and Social Psychology 91, no. 6 (2006), pp. 1080- 1093.

57 See D. J. Isenberg, "Group Po lariza tio n: A Cri tica l Review and Meta-ana lys is, · Journal of Persona/it)• and Social Psychology, December 1986, pp. 1141 - 1151; J. L. Hale and F. J. Boster, "Comparing Effect Coded Models of Choice Shifts,• Communication Research Reports, April 1988, pp. 180- 186; a nd r. W. Paese, M. Bieser, a nd M. E. Tubbs, "Frami ng Effects and Choice Shifts in Group Decision Making,• Organizational Behavior & Human Decision Processes, October I 993, pp. 149- 165.

58 M. r. Brady and S. Y. 'A'u, "1'he Aggregatio n of Preferences in Groups: Identi ty, Re.<ponsibil ity, and Polarizatio n, • Journal of Economic Psycholog)' 31, no. 6 (2010), pp. 950- 963.

59 J. Ewing, Faster, Higher, Farther (Norton & Company, 2017).

60 Z. Kriza n and R. S. Ba ro n, "G roup Polarization and Choice- Di lem mas: How Important Is Self-Categorization?" European Journal of Social Ps)'clwlogy 37, no. I (2007), pp. 191 - 201.

61 See R. r . McG lyn n, D. McGurk, V. S. Effla nd, N. L. Johll, a nd D. J. Harding, "Brainstorming and Task Performance in Groups Constrained by Evidence," Orgmiizntional Behavior and Huma,1 Decision Processes, January 2004, pp. 75- 87; and R. C. Litchfield, "Brainstormi ng Reconsidered: A Goal-Based View, · Academy of Management Review 33, no. 3 (2008), pp. 649- 668.

62 N. W. Kohn and S. M. Smith, "Collaborative Fixation: Effect.< of Others' Ideas on Brain.storming, • Applied Cognitive Ps)'chology 25, no. 3 (May/June 2011 ) , pp. 359- 371.

63 N. L. Kerr a nd R. S. Ti ndale, "Group r erformance and DecL, ion- Maki ng, • A1111ual Review of Psychology 55 (2004), pp. 623- 655.

64 C. Faure, "Beyond Brainsto rmi ng: Effects o f Different C ro up Procedures o n Selecti on o f Ideas and Satisfactio n with the Process,• Journal of Creative Behavior 38 (2004), pp. 13- 34.

65 T. M. Amabile, "A Model of Creativi ty and Innovati on in Organizatio ns,,. in Research in Organiu,tional Behavior, vol. 10, ed.

B. M. Staw and L. L Cummings (Greenwich, CT: JAi Press, 1988), p. 126; and J. E. Peny-Smith and C. E. Shalley, "The Social Side o f Creativity: A Static and Dynamic Social Network Perspective,· Academy of Management Review, January 2003, pp. 89- 106.

66 B. Brazier, .. Brendan Brazier on Holistic Nutrition," Ask Men,

n .d ., htt p://ca.askmen.com/ spo rts/ foodco urt/ brendan- brazier-o n-holistic-nutrition.hunl; and "Is Your Art Killing You?'

lnvestorldeas.com, May 13, 2013, http://www.investorideas.com/ news/ 2013/ renewable-e nergy/ 05134 .asp.

67 M. M. Cielnik, A.-C. Kramer, B. Kappel, and M. Frese. "Antecedents of Business O pportunity Ident ifica tion and Innova tion: Investigating the Inte rplay of In fo rmation Processi ng a nd Information Acquisitio n,· Applied Psychology: An International

Review 63, no. 2 (2014), pp. 344- 381 .

68 C. Ande rson , "Three T ips to Foster Crea tivi ty at You r

Startup," ArcticStarwp, May 8, 2013, http://www.a rcticsta rtup. com/ 2013/ 05/ 08/ th ree-ti ps-to-f o.ster-creativity-at-your-sta rtup.

69 C. Reynolds, "Want a Good Idea? Take a Walk, • New York Times, May 6, 2014, p. 0 6.

70 S. Shellenbarger, "The Power of the Doodle: Improve Your FoCtL< and Memory,• Wall Street Journal, July 30, 2014, pp. DI , 0 3.

71 E. Millar, "How Do Finnish Kids Excel without Rote Learning

and Standardized Testing?" Globe and Mail, May 9, 2013, http:// W\\~v.theglobeandmail.com/ report-on-busines.s/ economy/canada- competes/ how-do-finnish-kids-excel-without-rote-learning-and- standardized-testi ng/article 11810188/.

72 Z. Harper, "Mark Cuban WanL< You to De.sign the New Dallas Mavericks Uniforms,• CBSSports.com, May 13, 2013, http://www.

cbssports.com/ n ba/ eye-on-basket ba 11/ 2 22 3080 I / mark-cu ban- wants·yOu·tO·design·the· new.dal las-mavericks·uni fo rms.

73 C. K. \¥. De Dreu, B. A. Nij stad, M. Baas, I. Wols ink, and M. Roskes, "\<\forking Memory Benefi L< Creative Insight, Musica l Improvisation, and Original Ideation through Ma intained Task. Focused Attention," Personality and Social Psychology Bulletin 38

(2012), pp. 656- 669.

74 C.-H. \<\lu, S. K. Parker, and J. P. J. de Jong, "Need for Cognition as an Antecedent of Individual Innovation Behavio r," Journal of

Management 40, no. 6 (2014), pp. 1511 - 1534.

75 S. M. Wechsler, C. Vendramini, and T. Oakland, "Thinking and Creative Styles: A Validity Study,• Creativity Research Journal 24 (April 2012), pp. 235- 242.

76 Y. Gong, S. Cheung, M. Vslang, and J. Huang, "Unfold ing the Proactive Proce.o;ses fo r Creativi ty: Integration of the Employee Proactivity, Information Excha nge, and Psychologica l Sa fety Perspectives," Journal of Management 38 (2012), pp. 1611- 1633.

77 A. Rego, F. Sousa, C. Marques, and M. P. E. Cu nha, "Retai l Employees' Self-Efficacy a nd Hope Pred icting Thei r Positive Affect and Creativity,• European Journal of Work and Organizational Psyclwlog)' 21, no. 6 (2012), pp. 923- 945 .

78 H. Zhang, H.K. Kwa n, X. Zhang, a nd L -Z. Wu, "High Core

Self-Evaluators Mai ntain Creativity: A Motivational Model o f Abusive Supervisio n," Journal of Management 40, no. 4 (2012), pp. 11 51 - 1174.

79 D. K. Simonton, "The Mad-Genius Paradox: Can Creative People Be More Mentally Hea lthy b ut Highly Creative People More Mentally Ill ?" Perspectives on Ps)'clwlogical Scie11ce 9, no. 5 (2014),

pp. 4 70- 480.

Endnotes 601

80 C. Wang, S. Rodan, M. Fruin, and X. Xu, "Knowledge Networks, Collaboration Networks, and Exploratory Innovation," Academy of Management Joumal 57, no. 2 (2014), pp. 484- 514.

81 F. Gino and S. S. Wi ltermuth, " Evil Genius? Dishonesty Can Lead to Greater Creativity, · Ps)'clwlogical Science 25, no. 4 (2014), pp. 973- 981.

82 S. N. de Jesus, C. L. Rus, v,,1. Lens, and S. lmaginario, "lntrin.<ic Motivation and Creativity Related to Product: A Meta-ana lysis of the Studies Publ ished Between 1990- 2010," Creativity Research Journal 25 (2013), pp. 80- 84.

83 A. Somech and A. Drach-Zahavy, "Translating Team Creativity to Innovation Implementatio n: The Ro le. of Te.a m Composition and Climate for Innovation, · Joumal of Management 39 (2013), pp. 684- 708.

84 L. Sun, Z. Zhang, J. Qi, a nd Z. X. Chen, "Empowerment a nd Creativity: A Cross-Level Investigation," Leadership Quarter/)' 23 (2012), pp. 55- 65.

85 M. Ceme, C. C. L. Nerstad, A. Dysvik, and M. Skerlavaj, "What Goes a round Co mes a ro und : Knowledge Hid ing, Perceived Motivatio nal Climate, and Creativity," Academy of Mmiagement Journal 57, no. I (2014), pp. 172- 192.

86 S. Sonne.nshe.in, "' How O rganizations Foster the. Creative Use of Resources," Academy of Management Journal 57, no. 3 (2014), pp. 814- 848.

87 V. Venkataramani, A. W. Richter, and R. Clarke, "Creative BenefiL< fro m Well-Connected Leaders: Leader Social Network Ties as Faci litators of Employee Rad ical Creativity," Journal of Applied Psychology 99, no. 5 (2014), pp. 966- 975.

88 J. E. Peny-Smith, "Social Network Ties beyond Nonredundancy: An Experimental Investigation of the Effect o f Knowledge Content and Tie Strength on Creativity,• Journal of Applied Psycltology 99, no. 5 (2014), pp. 831- 846.

89 D. Liu, H. Liao, and R. Loi, "The Dark Side of Leadership: A Three- Level Investigation o f the Cascading Effect of Abusive Supervision o n Emp loyee Creativity,• Academy of Management Journal 55 (2012), pp. 1187- 1212.

90 J. B. Avey, F. L Richmond, and D. R. Nixon, "Leader Positivity and Follower Creativity: An Experimental Analysis,· Journal of Creative Beltavior46 (2012), pp. 99- 118; and A. Rego, F. Sousa, C. Marques, and M. E. Cunha, "Authentic Leadership Pro moting Employees' Psychological Capita l and Creativity,· Joumal of Business Researc/1 65 (2012), pp. 429-437.

91 I. J. Hoever, D. van Knippenberg, V.,,. P. van Gi nkel, and H. C. Barkema, "Fostering Team Creativity: Perspective Taking as Key to Unlocking Diversity's Potential," Journal of Applied Psyc/1olog,• 97 (2012), pp. 982- 996.

92 S. J. Shin, T. Kim, J. Lee, and L. Bian, ' Cognitive Team Diversity and Individual Team Member Creativity: A Cross-Level Interaction," Academ)' of Ma11agemen1 Journal 55 (2012), pp. 197-212.

93 A. W. Richter, G. Hirst, D. van Knippenberg, and M. Baer, "Creative Self-Efficacy and Individua l Creativity in Team Contexts: Cross. Level Interaction.< with Team Informational Resources,• Journal of Applied Psyc/1olog,• 97 (2012), pp. 1282- 1290.

94 X. Huang, J. J. Hs ie h, a nd v,,1_ He, "Expertise Dissi mila ri ty a nd Crea tivi ty: The Co ntingent Roles of Taci t and Expl icit Knowledge Shari ng, • Journal of Applied Ps)'cltology 99, no. 5 (2014), pp. 816- 830.

95 T. B. Harris, N. Li, W. R. Boswell, X.-A. Zhang, and Z. Xie, "Getting \+\!hat's New from Newcome.rs: Empowering Leadership, Creativity, and Adjustment in the Socialization Context, · Per,;0111,el PsyclwlogJ• 67 (2014), pp. 567- 604.

96 A. H. Y. Hon, M. Bloom, and J.M. Grant, "Overcoming Resistance to Cha nge a nd Enhanci ng Creative Perform ance,• Jounial of Manageme11t 40, no. 3 (2014), pp. 919- 941.

602 Endnotes

97 J. S. Mueller, S. Melwa ni, a nd J. A. Gonca lo, "The Bias against Crea tivity: Why People Desi re bu t Reject Creative Ideas, · Psychological Scie11ce 23 (2012), pp. 13- 17.

98 T. Montag, C. P. Maertz, and M. Baer, 'A Critical Analysis of the Workp lace Creativity Criterion Space,• Journal of Ma11ageme11t 38 (2012), pp. 1362- 1386.

99 M. Baer, ' Putting Creativity to Work: The Imp lementation of Creative Ideas in O rganizations," Arodem)' of Manageme,u Joun1al 55 (2012), pp. 1102- 1119.

100 Vignette based on E. Johnson, " I Vslill Do Anything I Can to Make My Goal': TD Teller Says Customers Pay Price for 'Unrea listic' Sales Targets: CBC News, March 6, 2017, http://www.chc.ca/ news/ canada/ british-columbia/ td-tellers-desperate-to-meet-increa,ing- sales-goals-1.4006743; and E. Johnson, ' '\'le Do It because Our Jobs Are at Stake' : TD Bank Employees Admit to Breaking the Law for Fear of Being Fired," CBC News, March 10, 201 7, http://www. cbc.ca/ news/ busi nes.s/ td-bank-em pl oyees-adm it-to -breaking- law-1.40165 69.

101 K. V. Kortenkamp and C. F. Moore, ' Ethics under Uncertainty: The Morality and Appropriateness of Utilitarianism When Outcomes Are Uncertain; America11 Joumal of Ps)'chology 127, no. 3 (2014), pp. 367-382.

102 A. Lukits, ' Hello and Bonjour to Moral Dilemmas: \-Vall Street Journal, May 13, 2014, p. 04.

103 J. Hollings, ' Let the Stoiy Go: The Role of Emotion in the Decision. Making Process of the Reluctant, Vulnerable Witness o r 'Alhistle- Blower: Journal of Busi11ess Ethics 114, no. 3 (2013), pp. 501- 512.

104 D. E. Rupp, P. M. 'Alright, S. Aiyee, and Y. Luo, "Organizational Justice, Behaviora l Eth ics, and Corporate Socia l Responsibil ity: Finally the T hree Shall Merge, · Ma11ageme11t and Orga11ization

Review 11 (2015), pp. 15- 24.

105 P. L. Schumann, "A Moral Principles Framework for Human Resource Management Ethics," Human Resource Manageme,11 Review 11 (Spring- Summer 2001), pp. 93- 111.

106 J. Hazlewood, "ACT Food President Awarded Internationa l Prize by Nobel Lau reates: CBC News, March 29, 2017, http:// www.cbc.ca/ news/ canada/ sa,katoo n/ nobel -busi ness-p rize-al- katib-i.4045869.

107 Based on R. A. Bernardi, C. A. Banzhoff, A. M. Martino, and K. J. Savasta, ' Challenges to Academic Integrity: Identifying the Factors Associated with the Cheating Chai n; Accou11ti11g Educatio11 21 (2012), pp. 247-263; M. K. Galloway, "Cheating in Advantaged High Schools: Prevalence, Justi fications, and Possibi litie., for Change, · Ethics & Behavior 22 (2012), pp. 378- 399; and M. H. Bazerman and A. E. Tenbrunsel, Blind Spots: Wliy \'le Fail to Do What's Right a11d What to Do abollt It (Princeton, NJ: Princeton University Press, 2012).

108 L. L. Shu and F. Gino, "Sweeping Dishonesty Under the Rug: How Unethica l Actions Lead to Forgetting of Moral Rules,• Journal of Perso11ality and Social Psychology 102 (2012), pp. 1164- 11 77.

109 B. C. Gunia, L. Wang, L. Hua ng, J. \'lang, a nd J. K. Murnighan, "'Contemplation and Conversation: Subtle I nfluences on Moral Decision Making; Academy of Ma11ageme111 Journal 55 (2012), pp. 13- 33.

110 R. F. \'lest, R. J. Meserve, and K. E. Stanovich, "Cogn itive Sophistication Does Not Attenuate the Bia, Blind Spot,· Journal of Perso11alit)' a11d Social Ps)'clwlog)' 103 (2012), pp. 506- 519.

ll1 T. Jackson, ' Cultural Values and Management Ethics: A 10-Nation Study,• Human Rela1io11s, October 2001, pp. 1267- 1302; see also J. B. Cullen, K. P. Pa rboteeah, and M. Hoegl, ' Cross-Natio nal

Differences in Managers' Willingness to Justify Ethically Suspect Behavio rs: A Test of Institutional Anomie Theoiy, • Academy of Ma11ageme11t Joumal, June 2004, pp. 411- 421.

112 This d iscussion is based on G. F. Cavanagh, D. J. Moberg, and M. Valasquez, "The Ethics of Organizational Politics,• Academy of Ma11ageme11t Jo11mal, June 1981, pp. 363- 374.

113 J. Quittner, ' Shopify Won't Remove Breitba rt 's O nline Shop, Claiming Free Speech,• Fort1111e, Februaiy 9, 2017, http://fortune. com/ 2017 /02/ 09/ shopify-wont-remove-breitbarts-onli ne-shop- claiming-free-speech/ .

114 Based on ' Lac Megantic: TSB Finds Company Had \'leak Safety Culture, • CBC.ca, August 19, 2014, http://www.cbc.ca/ news/ ca n ada/ m on trea I/ lac-m •!oC3 •!oA9gan tic-tsb-fi nds-compa ny- had-weak-safety-culture- 1.2739921; and I. Peritz, ' l.ac-Megantic Death., Were Avoidable, Coroner's Report Says,· Globe a11d Mail, Octobe r 8, 2014, http://www. th eglobeand mai l.com/ news/ national/ lac· megantic-death.~-were-avoidab le-coroners-report- says/ article20982 7 46/ .

115 T. Rinne, D. G. Steel, and J. Fairweather, "The Ro le of Hofstede's Individualism in Natio nal-Level Creativity," Creativity Research Joumal25 (2013), pp. 129- 136.

116 X. Yi, 'Al. Hu, H. Scheithauer, and W. Niu, ' Cultural and Bilingual Influences on Artistic Creativ ity Perfo rmances: Comparison of German and Chinese Students,• Creativity Research Joumal 25 (2013), pp. 97- 108.

117 Transparency International, A111111al Report 2011 (Berlin, Germany: Author, 2012), http://W\,~v.transparency.org/contentfdownload/ 61106/ 978536.

118 Based on S. Cain, "The Rise of the New Groupthi nk, • New York Times, Januaiy JS, 2012, pp. I , 6; and C. Faure, ' Beyond

Brainstorming: Effects of Different Group Procedures on Selection of Ideas and Satisfaction with the Process,• Journal of Creative Behavior 38 (2004), pp. 13- 34.

119 Several of these scenarios are based o n D. R. Altany, "Tom between Halo and Homs; lndustry'A1eek, March 15, 1993, pp. 15- 20.

120 Based on J. Mulkerri ns, ' All Spanx to Sara,• Daily Mail, April 6, 2013, http://www.dailymai l.co.ukfhome/ you/ article-2303499/ Meet-Spanx-creator-Sarah-Blakely.html; C. O'Connor, "American Booty; Forbes, March 26, 2012, pp. 172- 178; and R. Tulshyan, ' Spanx's Sara Blakely: Turn ing $5,000 into $ 1 Billion with Panties," CNN.com, December 5, 2012 , h ttp://www.cnn . com/ 2012/ 12/ 04/ busi nes.s/ sara-blakely-spanx-underwear/ .

121 Based on J. Calano and J. Sa lz man, "Ten \'lays to Fire Up Your Creativity," Worki11g Woma11, July 1989, p. 94; J. V. Anderson, ' Mind Mapp ing: A Too l for Creative Th inking; Busi11ess

Horizo11s, Ja nuary- February 1993, pp. 42 - 46; M. Loeb, "Ten Commandments for Managing Creative People," Fortune. January 16, 1995, pp. 135- 136; and M. Henricks, "Good Thinking." E11trepre11eur, May 1996, pp. 70-73.

OB on the Edge: Spirituality in the Workplace

1 A. Morr ison, " The Good Spirit' Metaphysical Shop Ready To

Open In Gastown," Scout Va11couver, Apri l 28, 2016, http:// scoutmagazine.ca/ 2016/04/ 28/seen-in-vancouver-575-the-good- spirit-metaphysical-shop-ready-to-0pen-in-gastown/; H. A. Miller, "Inaugural Youth Entrepreneur Award Recognizes U nique Retail Effort,• Alberta Sweetgrass 21, no. 3 (2014), http://www.a mmsa. com/publications/ alberta,S\veetgrass/ inaugural-youth-entrepreneur- award-recognizes-unique-retail-effort; and J. P. McGlynn, ' Savannah Olsen and The Good Spirit,• Castow11, June 7, 2016, http://gastown. org/savannah -olsen-and-the-good-spirit/ .

2 Rice University, "'More Than 20 Percent of Atheist Scientists Are

'Spiritua l; Study Fi nds," ScienceDail)', May 5, 2011 , http://"~'~v. sciencedai ly.com/ release.s/ 2011/ 05/ 110505124039.htm; and E. H. Ecklund a nd E. Long, ' Scientists and Spirituality,· Sociology of Religion 72, no. 3 (2011 ) , pp. 253- 274.

3 E. roole, 'Organisational Spirituality: A Literature Review,· Joumal of Business Ethics 84, no. 4 (2009), pp. 577- 588.

4 L. W. Fry and J. \¥. Slocum, "Managing the Triple Bottom Line through Spiritual Leadership," Organizational Dynamics 37, no. I (2008), pp. 86- 96.

5 B. E. Ashforth and M. G. r rau, "Institutionalized Spiritua lity: An Oxymo ron?" in Handbook of Workplace Spirituality and Organ iz..atio,ial Performance, ed. R. A. Giaca lone and C. L. Jurkiewicz (Armonk, NY: M. E. Sharpe, 2010), pp. 44 - 58; and A. M. Saks, "V\lorkp lace Spirituality and Employee Engagement,· Journal of Management, Spiri111ality & Religion 8, no. 4 (2011 ) , pp. 317- 340.

6 V. Ligo, "Configuring a Christian Spirituality o f Work, • 11ieology Today, 2011, pp. 441- 466.

7 A. Bea rd, ' Mi ndfulness in the Age of Co mplexity,· Harvard B11Siness Review, March 2014, pp. 68- 73, https://hbr.org/2014/ 03/ mindfulness-in·the·age.o f.complexity.

8 A. Bea rd, "Mi ndfulness in the Age of Co mplexity,· Harvard B11Siness Review, March 2014, pp. 68- 73, https://hbr.org/2014/ 03/ mindfulness-in·the·age.of.complexity.

9 A. Bea rd, "Mi ndfulness in the Age of Co mplexity,· Harvard B11Siness Review, March 2014, pp. 68- 73, https://hbr.org/2014/ 03/ mindfulness-in·the·age.of.complexity.

10 A. Bea rd, "Mi ndfulness in the Age of Co mplexity,· Harvard B11Siness Review, March 2014, pp. 68- 73, https://hbr.org/2014/ 03/ mindfulness-in·the·age·o f.complexity.

11 W. Immen, ' Meditation Fi nds a n O mmm in the Office, " Globe and Mail, November 27, 2012, http://www.theglobeand mai l. com/ repo rt· O n· b us iness/ s m a 11 · b us iness/ sb. ma naging/ huma n· resou rces/ meditation· fi nds·a n ·Om m m· in ·the.office/ article5684202/ .

12 L. S. Colzato, A. Szapora, D. Lippelt, a nd B. Hommel, · rrio r Meditation Practice Modul ates Performance and Strategy Use in Convergent· and Divergent.Thinking rroblems, • Mindfulness, October 2014.

13 J. D. Creswell, L E. racilio, E. K. Lindsay, and K. V\I. Brown, ' Brief Mi ndfu lness Med itatio n Traini ng Alters rsychologica l and Neu roendocrine Responses to Socia l Eva luat ive Stress," Psyclwneuroendocrinology44 (June 2014), pp. 1- 12.

14 A. C. Hafenbrack, Z. Kinias, and S. G. Barsade, "Debiasing the Mind th rough Meditation: Mindfulness and the Sunk.Cost Bias," Psyclwlogical Science 25, no. 2 (2013), pp. 369- 376.

15 W. Immen, ' Meditation Fi nds a n O mmm in the Office,' Globe and Mail, November 27, 2012, http://\\~vw.theglobeandmail.com/ repon.on-busines.s/smaJl.business/sb. managing/human·resources/ meditation. finds.an.o mmm-in·the-0ffice/anicle5684202/ .

16 M. Gonzalez, Mindful Leadership: The 9 Ways to Self-Awareness, Transforming Yourself, and lmpiring Others (Mississauga: John Wi ley and Sons, 2012).

17 W. Immen, ' Meditation Fi nds a n O mmm in the Office,' Globe and Mail, November 27, 2012, http://\\~vw.theglobeandmail.com/ repon.on-busines.s/smaJl.business/sb. managing/human·resources/ meditation. finds.an.o mmm-in·the-0ffice/anicle5684202/ .

18 S. McG reevey, "Tu rn Down th e Vol ume,• Harvard Gazette, April 22, 2011, h ttp://news.h arvard.edu/ gazette/ story/ 2011 / 04/ o/oE2•/o80•lo98turn·down·the·volumeo/oE2%80%99/ .

19 M. Goyal, S. Singh, E. M. S. Sib inga, N. F. Gould, A. Rowland· Seymour, R. Sharma, Z. Berger, D. Sleicher, D. D. Maron, H. M. Shihab, r . D. Ranasi nghe, S. Li nn, S. Saha, E. B. Bass, and J. A. Haythomthwaite, "Meditation rrograms for I'sychological Stres., and Well. Being: A Systematic Review and Meta.analysis," JAMA lntemal Medicine 174, no. 3 (2014), pp. 357-368.

20 T. L. Jacobs, r . R. Shaver, E. S. Epel, A. r . Zanes.co, S. R. Aichele, D. A. Bridwell, E. I. Rosenberg, B. C. King, K. A. Maclean, B. K. Sahdra, M.

Endnotes 603

E. Kemeny, E. Ferrer, B. A. Wallace, and C. D. Saro n, ' Self.reported Mindfulness and Cortisol during a Shamatha Meditation Retreat, • Health Psychology 32, no. 10 (October 2013), pp. 1104- 1109.

21 \¥. Duggleby, D. Cooper, and K. renz, ' Hope, Self. Efficacy, Spiritual \.Veil.Being a nd Job Satisfactio n," Joumal of Advanced Nur>ing 65, no. 11 (November 2009), pp. 2376- 2385.

22 Information based o n "About Us,· Vancouver Island Health Alllhority, accessed November 27, 2014, http://\\~vw.viha.ca/spiri· tual_ca re/ aboutf.

23 'The Bes'! Canadian Companies to 'A1ork for in 2014, • Business Review Ornada, November 25, 2013, http://www.businessreviewcanada. ca/ leadersh ip/ 10/T he· best· Ca nadian ·cO m pan ies· tO· wo rk· for. in·2014.

24 "Canadians Are Impatient, But Seek Serenity: Trend ran I,• JWT Canada, February JO, 2014, https://W\,~v. jwt.com/ en/ canada/ thinking/ canadiansarei m patientbutseekserenitytrendpan I/ .

25 C. L. Jurkiewicz and R. A. Giacalone, "A Va lues Framework for Measuring the Impact of Workplace Spirituality on Organizational r erforma nce, • Journal of Business Ethics 49, no. 2 (2004), pp. 129- 142.

26 D. McDonald, "A Colourful Commitment to Craft Leads to UFV Honorary Degree for Charllotte Kwon," UFVToday, June JI, 2014.

27 A. Daniels, 'Textile Importer Defends Artisans' Rights,• Vancouver Su11, May I, 2000, pp. C8, CJO.

28 "Get to Know Our Management Tea m, " Reaume Chev/ Buick/ GMC, accessed November 27, 2014, http://W\,w.reaumechev.com/ contact·US·OUr· managers.

29 R. Johnson, · rolling Religion in Canada,• National Post, December 21, 2012 (based on a 2012 Forum Research poll, commissioned exclusively for the National Post).

30 I. I. Mitroff and E. A. Denton, A Spiritual Audit of Corporate America: A Hard Look at Spirin,alit)i Religion, and Values in the Workplace (San Francisco: Jossey. Bass, 1999).

31 See, for example, B. S. r awar, "Workplace Spirituality Facilitation: A Comprehensive Model, · Journal of Business Ethics 90, no. 3

(2009), pp. 375- 386; a nd L. Lambert, Spiritualit)• /11c.: Religion i11 the American Workplace (New York: New York University r ress, 2009).

32 M. Oppenheimer, 'The Rise of the Corporate Chaplain,· Bloomberg Businessweek, August 23, 2012, pp. 58- 61.

33 M. Lips· Miersma, K. L. Dean, and C. J. Fom aciari, 'Theorizi ng the Dark Side of the Workp lace Spirituality Movement," Joumal of Ma11ageme1tt Inquiry 18, no. 4 (2009), pp. 288- 300.

34 J. · C. Ca rc ia .Zamo r, " 'A'o rk place Spi r itua lity a n d O rgan izat iona l Perfo rmance," Public Admi,i istralion Review. May- June 2003, pp. 355- 363; and L. 'A'. Fry, S. T. Hannah, M. Noel, and F. 0 . Walu mbwa, ' Impact o f Spi ritual Leaders hip o n Unit Performance, · Leadership Quarterly 22, no. 2 (2011 ), pp. 259- 270.

35 A. Rego a nd M. ri na e Cu nha, ' \'lorkp lace Spir ituality a nd O rgan izational Commitment: An Empirica l Study," Jounial of Orga11iza tio11al Change Management 21, no. I (2008 ), pp. 53- 75; R. 'A' . Ko lodi nsky, R. A. Giaca lo ne, a nd C. L. Ju rkiew icz, "Wo rkp lace Val ues a nd Outcomes: Exp lo ring Persona l, O rgan iza tional. and I nt eract ive Workp l ace Sp ir it ua lity," Journal of Business Ethics 81, no. 2 (2008), pp. 465- 480; a nd M. Gupta , V. Ku mar, and M. Singh, "Creating Satisfied Emp loyee.< through Workpl ace Spiritual ity: A Study o f the rrivate Ins ura nce Sector in r u n jab India,• Jounial of Business Ethics 122 (2014 ), pp. 79 - 88.

36 Cited in A. M. Saks, ' Workplace Spiri tua lity a nd Emp loyee Engagement,• Joumal of Management, Spiri111ality & Religion 8, no. 4 (2011 ), pp. 317-340.

604 En dnotes

Chapter 13

1 Vignette based on https://www.ho lacracy.o rg/ how-it-works/; and K. \<\lilkinson, "Holacracy Empower.; Employees by Getting Rid of Bosses, · Canadian Business, March 31. 2014, http://www. canadianbusine.ss.com/ busi ness-strategy / hol acracy / .

2 L. Ga ricano a nd Y. Wu, "Knowledge, Communication, and Organizational Capabilities,,. Organization Scie,ice, September- October 2012, pp. 1382- 1397.

3 See, for instance, R. L. Daft, Organizntion Theo,y and Design, 10th ed. (Cinci nnati, OH: South-Western Publishing, 2010) .

4 J. G. Miller, "The Real \<\/omen's Issue: Ti me,· Wall Street Journal, March 9- 10, 2013, p. C3.

5 T. \<\/. Ma lone, R. J. Laubach er, and T. Johns, "The Age of Hyperspecialization, • Harvard Business Review, July-August 2011, pp. 56- 65.

6 J. Schramm, "A Cloud of Workers." HR Magazine, Ma rch 2013, p. 80.

7 C. Woodyard, "Toyota Brass Shakeup Aims to Give Regions More Control," USA Today, March 6, 2013, http://"~vw.usatoday.com/ story/ money/ cara/ 2013/ 03/ 06/ toyota-shakeup/ 1966489/ .

8 C. Hymowitz, "Manage.rs Suddenly H ave to Answer to a Crowd of Bo.s.ses, • \,\la/I Street Journal, August 12, 2003, p. BI .

9 "'How Hierarchy Can Hurt Strategy Execution/ Haroard Business Review, July-August 2010, pp. 74-75.

10 See, for example, J. H. Gittell, "Supervisory Span, Relationa l Coordination, and Flight Departure Performance: A Reassessment of Postbu reaucracy Theory,· Organizntion Science, July-August 2001 , pp. 468- 483.

11 J. Ch ild a nd R. G. McG rath, "O rga nizatio ns Unfettered: Organizational Fonn in an lnformation· lntensive Economy," Academy of Management Journal, December 2001, pp. 1135-1148.

U F. A. Csascar, "Orga nizational Structu re as a Determ ina nt of Performance: Evidence from Mutual Funds," Strategic Management Journal, June 2013, pp. 611 - 632.

13 B. Brown and S. D. Anthony, "How P&G Tripled Its Innovation Success Rate." Harvard Business Review, June 2011, pp. 64 - 72.

14 A. Leiponen and C. E. Helfat, "Location, Decentralization, and Knowledge Sources for In nova tion," Organization Science 22, no. 3 (2011 ), pp. 641- 658.

15 K. Parks, •HSBC Unit Charged in Argentine Tax Case,• \,\la/I Street Joumal, March 19, 2013, p. C2.

16 G. Morgan, Images of Organizntion (Newbury Park, CA: Sage, 1986), p. 21.

17 P. Hempel, Z.-X. Zhang, and Y. Han, "Tea m Empowerment and the Organizational Context: Decentral ization and the Contra~ting Effects of Formalization," Journal of Management, March 2012, pp. 475-501.

18 J. E. Perry-Smith a nd C. E. Sha lley, "A Social Co mposition View of Team Crea tivity: The Role of Member Natio nality- Heterogeneous 1ies Outside of the Team," Orgm1izntiot1 Science 25 (2014), pp. 1434- 1452; J. Han, J. Han, and D. J. Brass, •Human Capital Diversity in the Creation of Social Capita l for Tea m Creativity,• Journal of Organizntional Behavior 35 (2014), pp. 54-71; and N. Sivasubramaniam, S. J. Liebowitz, and C. L. Lackman, "Detenninants of New Product Development Team Performance: A Meta-analytic Review:," Joun1al of Product Innovation Management 29 (2012), pp. 803- 820.

19 N. J. Foss, K. Lau rsen, and T. Pedersen, "Linking Custo me r In te raction a nd Innovation: The Media ting Ro le of New O rganiza tio nal Practices,· Organization Science 22 (2011 ) , pp. 980- 999; N. J. Foss, J. Lyngsie, and S. A. Zahra, "The Role of External Knowledge Source.< and Orga nizatio nal Design in the Process of Opportunity Explo itation," Strategic Manageme,1t

Journal 34 (2013), pp. 1453- 1471; A. Salter, P. Crisuolo, and A. L J. Ter Wal, "Coping with Open Innovation: Respond ing to the Challenges of External Engagement in R&D." California Management Review 56 ('A'inter 2014), pp. 77-94.

20 T. A. de Vries, F. Wa lter, G. S. Va n der Vegt, and P. J. M. D. £.,;sens, '''Antecedents of Ind iv iduals' lnterteam Coord ina tion: Broad Functional Experiences as a Mixed Blessing, • Academy of Management Journal 57 (2014), pp. 1334- 1359.

21 A. Murray, •Built Not to La.st, · Wall Street Journal, March 18, 2013, p. All .

22 For a quick overview, see J. Davore n, "functiona l Structure O rganization Strength and Weakness." Small Business Chronicle, accessed Ju ne 25, 201 5, http://s ma ll business.ch ron.com/ functional -structure-o rganization-strength-weakness-60111.htrn l.

23 See, for in.stance, A. Writi ng, •Different Types of Organizational Structure." Small Business Chronicle, accessed June 25, 201 5, http://smallbusi ness.chro n.co m/ d ifferent-types-organizational- structure-723.html.

24 Fo r a qu ick overview. see .. Types of Bus iness Organizational Structures,· Pingboard, July 24, 2013, https://pingboard.com/ blog/types-business-organizational-structures/ .

25 J. R. Galbraith, Designing Matrix Organizatio11S That Actually \,\fork: How IBM, Procter & Camble, and Others Design for Success (San Francisco: Jo.ssey Bass, 2009); and E. Krell, "Managing the Matrix, • HR Magazine, April 2011, pp. 69- 71.

26 See, for instance, M. Bidwell, •politics and Finn Boundaries: How O rganizational Structure, Group Interests, and Resources Affect OuLo;ourcing," Organiu,tion Science, November- December 2012, pp. 1622- 1642.

27 See, for example, T. Sy a nd L S. D'Annunzio, "Challenges and Strategies of Matr ix O rgan izations: Top-Level and Mid-Level Ma nagers' Perspectives," Human Resource Plam1ing 28, no. 1 (2005), pp. 39- 48; and T. Sy and S. Cote, "Emotional Intelligence: A Key Ability to Succeed in the Matrix Organization." Journal of Management Development 23, no. 5 (2004), pp. 437- 455.

28 Based on I. Tos.sell, •say Goodbye to Hierarchy, Hello to Holacracy, • Globe and Mail, March 25, 2017, https://beta.theg)obeandmail.com/ report-on-busine.ss/ rob-magazine/d i.<ruption-no-boss-needed-in- a-holacracy/ article20J 985 8 7 / ? ref=http://www. theglobeandmai I. com&.

29 N. Ana nd and R. L. Daft, • \<\/hat Is th e Right Orga nizatio n Design?" Organizntional Dynamics 36, no. 4 (2007), pp. 329- 344.

30 See, fo r example, N. S. Co ntractor, S. Wasserman, a nd K. Faust, "Testing Multitheoretical, Multilevel Hypotheses about O rganizationa l Networks: An Ana lytic f ramework and Empirical Exa mple,· Academ)' of Management Review 31, no. 3 (2006), pp. 681-703; and Y. Sh in, "A Peraon-Environment Fit Model for Virtual O rga nizations,• Journal of Management, October 2004, pp. 725-743.

31 "\<\lhy Do Canadian Companies Opt for Cooperative Ventures?" Micro: The Micro-Economic Research Bulletin 4, no. 2 ( 1997), pp. 3-5 .

32 J. Schramm, "At Work in a Virtual World,· HR Magazine, June 2010, p. 152.

33 C. B. Gibson and J. L. Gibbs, "Unpacking the Concept ofVirtuality: The Effects of Geographic Dispersion, Electronic Dependence, Dynamic Structure, and National Diversity o n Team Innovation," Administrative Science Quarterly 51, no. 3 (2006), pp. 451- 495; H. M. Latapie and V. N. Tran, "Subculture Formation, Evolution, and Conflict Between Regiona l Teams in Virtual O rganizations," Business Review, Summer 2007, pp. 189- 193; and S. Davenport and U. Daellenbach, "'Belo nging' to a Virtual Research Center. Exploring the Influence of Social Capital Fonnation Processes on Member Identification in a Virtual Organization," British Jounial of Management 22, no. I (2011), pp. 54-76.

34 A. Poo n and K. Ta lly, "Yoga-Pa nts Suppl ier Says Lu lulemon Stretches Truth," \.\la/I Street Joumal, March 20, 2013, p. Bl.

35 Based on T. Johns and L. Gratton, "The Third Y..•ave of Virtua l Wo rk,• Harvard Busi11ess Review, Jan uary- Feb ruary 2013, pp. 66-73; R. E. Silverman, "Step Into the Office-Less Company, •

Wall Street Jouma/, September J 5, 2012, p. 86; and R. E. Silverman, "Tracking Sensors Invade the Workplace.· \.Vall Street Journal, March 7, 2013, p. BI.

36 See, for instance, E. Deva ney, "The Pros & Cons of 7 Popular Orga nizational Structures," accessed June 25, 2015, http://blog. hubspot.com/ marketing/team-structure-diagrams.

37 J. Scheck, L. Molo ney, and A. Flynn, "Eni, CNPC Li nk Up in Mozambique,• H'all Street Joumal, March 15, 2013, p. 83.

38 E. Devaney, "The Pros & Cons of 7 Popula r O rga nizationa l Structures," accessed June 25, 2015, http://blog.hubspot.com/ marketing/team.structure-diagrams.

39 P. Evans, "Sears Canada to Close 59 Stores, Lay Off 2,900 in Re.structuri ng," CBC News, June 22, 2017, http://www.cbc.ca/ news/ business/ sears-canada-ccaa-1.417273 6.

40 S. Brady, "American Express Kicks Off 2013 with Biggest Layoffs in Four Years,· Brand Cha11nel, January JO, 2013, http://\\~Vw. brandchannel.com/ home/post/ American-Express-Layoffs-011013. aspx.

41 L. Gensler, "America n Express to Slash 4,000 Jobs on Heels of Strong Quarter,· Forbes, January 21, 2015, http://www.forbes.com/ sites/ laurengensler / 2015/ 01 / 21 /a merican-express-earni ngs-rise- I I -o n-i ncreased-cardholder-spendi ng/.

42 C. Giammona, "Starbucks First.Quarter Profit Surges 820/c, as Food Sales Gain," Bloomberg Business, January 22, 2015, http://\\~Vw. bloomberg.com/ news/ artides/ 2015-01-22/starbucks-fi rst-quarter- profit -su rges-82 -as-food -sa Jes.increase.

43 C. D. Zatzick and R. D. Iverson, ' High-Involvement Management a nd Wo rkfo rce Reduct io n : Com petitive Adva ntage o r Disadvantage?" Academ)' of Ma11agement Joumal 49, no. 5 (2006), pp. 999- 1015; A. Travaglione and B. Cross, "Dimin ishi ng the Social Network in Organizations: Does There Need to Be Such a Phenomeno n as 'Suivivor Syndrome' After Downsizing?" Strategic Cha11ge 15, no. I (2006), pp. 1- 13; and J. D. Kammeyer-Mueller, H. Liao, a nd R. D. Arvey. "Downsizi ng a nd O rga nizatio nal Performance: A Review of the Li teratu re from a Stakeholder Perspect ive," Research in Personnel and Huma,1 Resources Ma11age111e1tt 20 (2001 ), pp. 269- 329.

44 Vignette based on K. Wi lkinson, "Holacracy Empowers Employees by Getting Rid of Bosses,· Canadia11 Busi11ess, March 31, 2014, http://\\~vw.canadianbusines.,.com/business-strategy/ holacracy/ .

45 K. \.Va lke r, N. N i, a nd B. Dyck, "Recipes fo r Successfu l Sustai nabil ity: Empi rical Organ izatio nal Configurations for Strong Corporate Environmenta l Performance." Business Strategy a11d the E11viro111nent 24, no. I (2015), pp. 40-57.

46 See, for insta nce, J. R. Hollenbeck, H. Moon, A. P. J. Ellis, B. J. West, D. R. II gen, L Sheppard, C. 0. L. H. Po rter, and J. A. Wagner Ill, "Structura l Contingency Theory a nd Individual Differences: Examinatio n of External and Internal Person.Team Fit." Jounial of Applied Psychology, June 2002, 599- 606; and A. Drach-Zah avy a nd A. Freund, "Team Effectiveness Under Stre.s.<: A Structural Contingency Approach,· Jounwl of Organizatio11al Behavior 28, no. 4 (2007), pp. 423- 450.

47 K. \.Va lke r, N. N i, a nd B. Dyck, "Recipes fo r Successfu l Sustai nabil ity: Empi rical Organ izatio nal Configurations for Strong Corporate Environmenta l Performance," Business Strategy a11d the E11viro111nent 24, no. I (2015), pp. 40- 57.

48 See. for instance, S. M. Toh, F. P. Morge.son, and M.A. Campion, "Human Resource Configurations: Investigating Fit w ith the Organizational Context, · Joumal of Applied Ps)'clwlogy 93, no. 4 (2008), pp. 864- 882.

End notes 605

M. Mesco, "MoleskineTestsAppetite for IPOs, " Wall Street Journal, March 19, 2013, p. 88.

J. Backaler, "Haier: A Chinese Company that Innovates, · Forbes, June 17, 2010, http://www.forbes.com/sites/china/ 2010/ 06/ 17/ haier·a·chinese:-co mpany. that· innovates/.

See C. Perrow, "A Framework fo r the Comparative Analysis of Organizations," American Sociological Review, April I 967, pp. 194- 208; J. Hage and M. Aiken, "Routine Technology, Social Structure. and Organizationa l Coa ls," Adm inistrative Science Quarterly, September 1969, pp. 366- 377; C. C. Miller, v,,1. H. Glick, Y. Wang, and G. P. Huber, "Understanding Tech nology-Structure Relationships: Theory Development and Meta-analytic Theory Testing,• Academ)' of Ma11age111e11t Journal, June J 991, pp. 370- 399; and W. D. Sine, H. Mitsuhashi, and D. A. Kirsch, "Revisiting Bum< and Stalker: Formal Structure and New Venture Performance in Emerging Economic Sectors," Academy of Manageme,1t Jounwl 49, no. I (2006), pp. 121- 132.

See, for instance, J. A. Cogin and I. 0 . Y..'illiamson, "Standardize or Custo mize.: The Interactive Effects of HRM and Environment Uncertainty on MNC Subsidiary Performance," Human Resource Management 53, no. 5 (2014), pp. 701 - 721; a nd G. Kim and M.-G. Huh, "Exploration and O rga nizational Longevity: The Moderating Role of Strategy and Environment," Asia Pacific Joumal of Ma11ageme1tt 32, no. 2 (2015), pp. 389-414.

R. Greenwood, C. R. Hinings, a nd D. Y,,lhetten, "Rethinking Institutions and Organizations," Jounial of Manageme,u Studies 51 (2014), pp. 1206- 1220; a nd D. Chandler and H. Hwang, "Learn ing from Learning Theory: A Model of Organizational

Adoption Strategies at th e Microfoundatio ns of Institutional Theory," Journal of Ma11ageme1tt 41 (2015), pp. 1446- 1476.

Vignette based o n D. Aarts, "The Utopian Dream of a 'Flat Hierarchy' is Actually a Nightmare,· Canadian Bu,i11ess, May 2, 2016, http://www.ca nadianbusiness.com/ b logs-and-comment/ the-utopian.dream.of-a-flat-hierarchy-is-actually-a-nightmare/; and R. D. Hodge, "First, Let's Get Rid of All the Bosses," New Republic, October 4, 2015, https://newrepublic.com/ artide/ 122965/ can-bi 11 io n-dol la r-co rpo ration· za ppos-be-self-organized.

C. S. Spell and T. J. Arnold, "A Mu lti-Leve l Ana lys is of O rganizational Justice and Climate. Structure, a nd Employee Menta l Health , • Journal of Management 33, no. 5 (2007), pp. 724- 751; and M. L Ambrose and M. Schminke, "Organization Structure as a Moderator of the Relationship Between Procedural Justice. Jnteractional Justice, Perceived Organizational Support, and Supervisory Trust,• Journal of Applied Psycholog)' 88, no. 2 (2003), pp. 295- 305.

56 See, for instance, C. S. Spell a nd T. J. Arnold, "A Mu lti-Level Analysis of Orga nizationa l Justice Clima te. Structure, a nd Employee Menta l Health,· Journal of Ma11agement 33, no. 5 (2007), pp. 724- 751; J. D. Shaw and N. Gupta, "Job Complexity, Performance, and Well-Being: \,Vhen Does Suppli es-Va lues Fit Matter?" Perso1111el Psyc/10/og)' 57, no. 4 (2004), pp. 847-879; and C. Anderson and C. E. Brown, '"The Functions and Dysfunctions of Hiera rchy,· Research in Organizatio11al Behavior 30 (2010), pp. 55-89.

57 Based on P. Puranam, M. Raveendran, and T. Kn udsen, "Organ izatio n Des ign: The Ep is tem ic In terdepe nde nce Perspective," Academy of Management Review 37, no. 3 (2012), pp. 419-440; and R. E. Silverman and Q. Fottrell, "The Home Office in the Spotlight, • \.Vall Street Joumal, February 27, 2013, p. 86.

58 T. Martin, "Pharmacies Feel More Heat,• \.\la/I Street Journal, March 16- 17, 2013, p. A3.

59 See. for instance. R. E. Ployhart, J. A. Y..1eel<ley, and K. Baughman, "The Structu re and Fu nctio n of Human Capital Emergence: A Multilevel Examination of the Attraction.Selection-Attrition Model,• Academy of Ma11ageme11t Joumal 49, no. 4 (2006), pp. 661 - 677.

606 Endnotes

60 J. B. Stewart, "A Place to Play for Google Staff: New York Times, March 16, 2013, p. BI.

61 P. Dvorak, "Making U.S. Management Ideas Work Elsewhere,• \.Vall Street Joumal, May 22, 2006, p. B3.

62 See, for example, B. K. Park, J. A. Choi, M. Koo, S. Sul, and I. Choi, "Culture, Self, and Preference Structure: Transitivity and Context Independence Are Violated More by Interdependent People,· Social Cognition, February 2013, pp. 106- 118.

63 J. Has.,ard, J. Morris, and L McCann, " My Brilliant Career' ? New Organizational Forms and Changing Managerial Careers in Japan, the UK, a nd USA; Journal of Management Studies, May 2012, pp. 571- 599.

64 Based o n A. Brya nt, "Structure? The Flatter the Better,• New York Times, January 17, 2010, p. BU2; "Ho neywell International: From Bitter to Sweet: Economist, April 14, 2012, http://www.economist. com/ node/21552631; A. Efrati and S. Morrison, "Chief Seeks More Agile Google,· Wall Street Joumal, January 22, 2011, pp. Bl , B4; H. El Nasser, "What O ffice? Laptops Are \.Vorkspace, • USA Today, June 6, 2012; Fortune 500 rankings, http://money.cnn.com/ maga- zines/fortune/ fortuneS00/ 2012/ full_list/ ; "Honeywell I Company Structure Information from ICIS, • ICIS.com, accessed November 12, 2014, http:/fw,,~v.icis.com/ v2/ compa nies/ 9t 45292/ honey- well/structure.html; K. Linebaugh, "Ho neywell's Hiring Is Bleak,· Wall Street Journal, March 6, 2013, p. B3; A. Mu rray, "The End of Management: Vi'a/1 Street Joumal, August 21, 2010, p. V-13; A. R. Sorkin, "Delegator in Chief,· New York Times, April 24, 2011 , p. B4; a nd S. Tully, "How Dave Cote Got Honeywell's Groove Back," CNN Mone)', May 14, 2012, http://ma nagement.fortune. cnn.com/ 2012/ 05/ 14/ 500-honeywel I-cote/.

65 M. Kaufman, "1ne 'A'isdom of Job In.security,· Forbes, October 3, 2014, http://www.forbe.,.com/sites/ michakaufman/ 2014/ 10/ 03/ the-wisdom-of-job-in.<ecurity-dont-be-lulled-by-fall ing-unem- ployment/; C. Van Gorder, "A No-Layoffs Po licy Can 'A'ork, Even in an Unpredictable Economy," Harvard Business Review, January 26, 2015, http.<://h br.org/2015/ 01 /a-no-layoffs-pol icy-can-work- even-i n-an-u npredictab I e-economy; J. Zumbrun, "Is Your Job 'Routine'? If So, It's Probably Disappea ring; Wall Street Journal, April 8, 2015, http://blogs.wsj.com/ economics/ 2015/ 04/ 08/ is-you r-job-rou ti ne-i f-so-i ts-probab ly-d isappearing/; and U. Kinnunen, A. Miikikangas, S. Mauno, N. De Cuyper, and H. De Witte, .. Development of Perceived Job ln.~ecurity across Two Years: Associations with Antecedents a nd Employee Outcomes," Jounwl of Occupational Health Psychology 19 (2014), pp. 243- 258.

66 Based on C. Mainemelis, "Stealing Fire: Creative Deviance in the Evolution of New Ideas,• Academr of Management Review 35, no. 4 (2010), pp. 558- 578; and A. Lashinsky, "Inside Apple, • Fortune, May 23, 2011, pp. 125- 134.

67 Based o n P. J. Sauer, "Open-Door Ma nagement, · Inc. , June 2003, p. 44; and "Not Just Job-,. Opportunities,• TechTarget.com, accessed November 12, 2014, http://www.techtarget.com/ htrnl/ job_opps.htm.

68 Based on S. P. Robbins and P. L. Hunsaker, Training in Interpersonal Skills, 3rd ed. (Upper Saddle River, NJ: Prentice Hall, 2003), pp. 95-98.

Chapter 14

1 Vignette based on The Associated Pre.SS, "Ringling Bros. Closing Cu rtai n o n Namesa ke Ci rcus After 146 years: CBC News, January 16, 2017, http:/fW\,~v.cbc.ca/ news/ world/ ringling-bro.<- circus-endi ng-1.3936551; a nd R. Marowits, "Cirq ue du Soleil Founder Sells Company, Refuses to Pass It to His Ch ildren, • Canadian Business, Apri l 20, 2015, http://W\,~v.ca nadianbusine.s.,. com/ business. news/ news a le.rt ·ci rque.du.sol ei J .sel Js. majo rity· stake-to-u-s-private-equity-ft rm/ .

2 A. Chowdhiy, "Apple Surpassed Samsung as Global Phone Market Leader, Says Report, · Forbes, March 3, 2015, http://W\,~v.forbes.

com/ sites/ a m i tchowd h ry/ 2015 / 03 / 04/ apple-passe.,-samsu ng/; and https://www.statista.com/ statistics/ 2634 OJ/ globa 1-appl e- iphone-sales-si nce-3rd-quarter-2007 /; https:f f,VW\v.digital trends. com/ mobile/ 2016-smartphone-sa les/ ; https://\\~VW. fastcom pany. co m/ 305606 9 / sa msung-agai n-easi ly-sel Is-more-phones-than· apple-in-q4; and https://"~vw.recode.net/ 2017/2/ 26/ 14742598/ b I ackberry-sal es-ma rket -sha re-cha rt.

3 See, for exa mple, K. H. Hammonds, "Practical Rad icals, · Fast Om,pany, September 2000, pp. 162- 174; and P. C. Judge, "Change Agents: Fast Company, November 2000, pp. 216- 226.

4 A. Finder, P. D. Hea ly, a nd K. Zernike, "President of Ha rva rd Resigns, Ending Stormy 5-Year Tenure, • New York Times, February 22, 2006, pp. Al, Al9.

5 Vignette based on D. Neisser, "How Cirque Du Soleil Contorts to Create Change," Advertising Age, December 14, 2016, http:// adage.com/ article/ cmo-strategy/cirque-du-soleil-contorts-create- change/ 307141/ ; and R. Leach, "Major change.< at Cirque's The Beatles Love' are two years in the making." Las Vegas Swt, February 16, 2016, h ttps://lasvegassun.com/ vegasdeluxe/ 2016/ feb/ ! 6/ major.change.~·cirque.beatles-love· two.years·making/.

6 See, for instance, J. Manchester, D. L. Cray-Miceli, J. A. Metcalf, C. A. Paol ini, A. H. Napier, C. L. Google, a nd M. G. Owens, "Facilitating l.ewin's Change Model with Collaborative Evaluation in Promoting Evidence-Based Practices of Health Professionals,• Evaluation and Program Planning, December 2014, pp. 82- 90.

7 P. G. Audia, E. A. Locke, a nd K. C. Smith, "The Paradox of Success: An Arch iva l a nd a Laboratory Study of Strategic Persistence Following Radical Environmental Change,• Academy of Management Joumal, October 2000, pp. 837-853; and P. C. Audia and S. Brion, "Reluctant to Change: Self-Enhancing Responses to Divergi ng Performance Measures," Orgmiizational Behavior mid

Human Decision Processes 102, no. 2 (2007), pp. 255- 269.

8 See, for instance, J. Kim, "Use of Kotter's Leading Change Model

to Develop and Implement a Heart Failure Education Program for Certified Nursing As.,istants in a Long-Term Care Facility,• Nursing

Research 64, no. 2 (2015), p. E35; and J. Pollack and R. Po llack, "Us ing Kotter's Eight Stage Process to Manage an Organisational Change Program: Presentation and Practice," Systemic Practice and Action Research 28, no. I (2015), pp. 41- 66.

9 See, for example, L. S. Lilscher and M. 'A'. Lewis, "Organizational Change and Managerial Sensemaking: 'A1orking through Paradox,•

Academr of Ma11ageme,11 Joumal SJ, no. 2 (2008), pp. 221- 240.

10 See, for example, B. Verleysen, F. Lambrechts, and F. Van Acker,

"Bu ild ing Psychologica l Capita l with App reciative Inq uiry: Investigating the Med iating Ro le of Basic Psychologica l Need Satisfaction,• Journal of Applied Behavioral Science 51, no. l (2015), pp. 10- 35; C. R. Bushe, "How Has Al Lived Up to Promises, \.Vhat Is IL< Future?" Al Practitioner 18, no. I (2016); and G. R. Bushe, "A Comparative Case Study of Appreciative Inq uiries in O ne O rganization: Implications for Practice," Review of Research and Social Intervention 29 (2010), pp. 7-24.

11 C. R. Bushe, "A Comparative Case Study of Appreciative Inquiries in One Organization: Implications for Practice,• Review of Research

and Social Intervention 29 (2010), pp. 7- 24.

12 C. R. Bushe, "A Comparative Case Study of Appreciative Inquiries in One Organization: Implications for Practice,• Review of Research and Social lnteroention 29 (2010), pp. 7- 24.

13 C. R. Bushe, "How Has Al Lived Up to Pro mises, 'A' hat Is IL< Future?" A/ Practitioner 18, no. I (2016).

14 Vignette based on R. Leach, "Major Changes at Cirq ue's The Beatles Love' Are Two Years in th e Making, • Las Vegas Sun,

February 16, 2016, https://lasvegassun.com/ vegasdeluxe/ 2016/ feb/ 16/ major-changes-cirque-beatles-love-two-years-making/.

15 P. G. Audia and S. Brion, "Reluctant to Change: Self-Enh ancing Responses to Diverging Performance Measu res," Organiznlio,ial Behavior and Huma11 Decision Proasses 102 (2007), pp. 255 - 269.

16 M. Fugate, A. J. Kinicki, and G. E. PruS-<ia, 'Employee Coping with Orga nizational Change: An Exa mi nation of Alternative Theoretical Perspectives and Models; Perso11nel Psrc/10/ogy 61, no. I (2008), pp. 1- 36.

17 R. B. L. Sijbom, 0 . Janssen, and N. Vv. Van Yperen, "How to Get Radical Creative Ideas into a Leader's Mind? Leader's Achievement Goals and Subordinates' Voice of Creative Ideas: European Jou ma/ of Work and OrganiZ1Jtional Psrchology 24 (2015), pp. 279- 296.

18 J. D. Ford, L. v .... Ford, and A. D'Amelio, ' Resistance to Cha nge: The Rest of the Stoiy, • Academy of Management Review 33, no. 2 (2008), pp. 362- 377.

19 Based on J. P. Kotter and L.A. Schlesinger, 'Choosing Strategies for Change,· Hanx,rd Bminess Review, July- August 2008, pp. 130- 139.

20 D. Katz and R. L. Kahn, The Social Psyc/10logy of OrganiZ1Jtio11S, 2nd ed. (New York: \,Viley, 1978), pp. 714- 715.

21 J. P. Kotter and L.A. Schlesinger, 'Choosing Strategies for Change, •

Harvard Busi11ess Review, March -April 1979, pp. 106- 114.

22 P. C. Fis.< and E. J. Zajac, "The Symbolic Management of Strategic Change: Sensegiving via Framing and Decoup ling.· Academy of Ma11ageme11t Joumal 49, no. 6 (2006), pp. 1173- 1193.

23 A. E. Rafferty and S. L. D. Restubog. "The Impact of Change Proces.'i and Context on Change Reactions and Turnover during a Merger," Joumal of Ma11agement 36, no. 5 (2010), pp. 1309- 1338.

24 Q. N. Huy, "Emotional Balanci ng of Organizational Continuity a nd Radical Cha nge: T he Contribution of Middle Managers,• Administrative Science Quarterly, March 2002, pp. 31 - 69; D. M. Hero ld, D. B. Fedor, and S. D. Caldwell, 'Beyond Cha nge Management: A Multilevel Investigatio n of Contextual and Personal Infl uences on Employees' Commitment to Change,· Joumal of Applied Psychology 92, no. 4 (2007), pp. 942- 951; and G. B. Cunningham, "The Relation.sh ips among Commitment to Change, Coping with Change, and Turnover Intentions,· Europea11 Joumal of Work a11d Organizatio11al Psrchology 15, no. I (2006), pp. 29- 45.

25 R. Peccei, A. Gia ngreco, and A. Sebastiano, "The Ro le of Organ izationa l Commitment in the Analysis of Resistance to Change: Co.p redictor and Moderator Effects," Personnel Review 40, no. 2 (2011), pp. 185- 204.

26 J.P. Kotter, "l eading Change: \','hyTransfonnational Efforts Fail," Harvard Busi11ess Review, January 2007, pp. 96- 103.

27 K. van Dam, S. Oreg. a nd B. Schyns, "Daily Work Context.< a nd Resista nce to O rganisational Change: The Role of leader- Member Exchange, Development Climate, a nd Change Proces., Characterist ic:.,: Applied Psrc/10/ogr: A11 lnten1a1io11al Review 57, no. 2 (2008), pp. 313- 334.

28 A. H. Y. Hon, M. Bloom, and J.M. Crant, 'Overcoming Resistance to Change and Enhancing Creative Performance,· Journal of Ma11age111e11t 40 (2014), pp. 919- 941.

29 S. O reg and N. Sverdlik. "Ambivalence toward Imposed Change: The Confl ict between Dispositio nal Resistance to Change and the O rientation towa rd the Cha nge Agent,· Journal of Applied Psyc/10log)' 96, no. 2 (2011 ), pp. 337- 349.

30 D. B. Fedor, S. Caldwell, a nd D. M. Herold, 'The Effects of Organizational Changes on Employee Commitment: A Multilevel Investigation; Perso1111el Psyc/Jolog)' 59 (2006), pp. 1- 29.

31 S. Oreg. "Personality, C:Ontext, and Resistance to Organizational Cha nge,• Europea11 Joumal of Work a11d Organizational Psychology 15, no. I (2006), pp. 73- IOI.

32 S. M. Elias, 'Employee Comm itme nt in T imes of Cha nge: Assessing the Importance of Attitudes toward Orga nizational Change; Joumal ofMa11ageme11t 35, no. I (2009), pp. 37- 55.

End notes 607

J. W. B. Lang and P. D. Bliese, "General Mental Ability and Two Types of Adapta tion to Unfore.<een Ch ange: App lying Discontinuous Growth Models to the Task-Change Paradigm,• Joumal of Applied Psyc/10/og,, 94, no. 2 (2009), pp. 411- 428.

C. 0. L. H. Porter, J. v,,1_ Webb, and C. I. Gogus, "V,,lhen Goal O rien tations Coll ide: Effects of Lea rning and Perfo rmance O rientation o n Tea m Adaptab ility in Re.<ponse to Workload Imbala nce,· Journal of Applied Psrcl10log)' 95, no. 5 (2010), pp. 935- 943.

Based on original research conducted by Dr. Katherine Breward, Univers ity of Winn ipeg. as yet unpublished; and Habitat for Hu man ity, "Hab itat for Hu man ity Ma n itoba Partners w ith Rockwood Institution to Build a Home in \+Vi nni peg, " news release, Decembe r 18, 2013, http://www.habitat. m b.ca/ PDF/ med ia/2013/H ab i tat0fc,20Rockwood•!o20H ome•/020 Dedication%20Presso/o20RELEASE.PDF.

See. for exa mp le, A. Karaevli, "Performance Consequences for New CEO 'Out.<idem ess': Moderating Effect.< of Pre- and Post- Succession Contexts," Strategic Management Jounwl 28, no. 7 (2007), pp. 681 - 706.

Based on R. H. Miles, "Accelerating Corporate Transformations (Don't Lose You r Nerve!),· Harvard Busi11ess Review, Januaiy/ Februaiy 2010, pp. 68- 75.

Vignette based on D. Neisser, "How Cirque Du Soleil Contorts to Create Change; Advertising Age, December 14, 2016, http:// adage.com/article/cmo-strategy/cirque-du-soleil-contorts-create- change/307141/; and A. Woods, "Circus Meets Extreme Sports in Cirque du Soleil's Volta,• Toronto Star, August 10, 2017, http.<:// www.th estar.co m/e nte rta i nmen t/201 7 /08/ 10/ ci rcus-meets- extreme·spo rtS· i n -ci rq ue·d u ·SO I ei Is-vo I ta.ht ml.

W. K. Smith and M. W. Lewis, "Toward a Theory of Paradox: A Dynam ic Equilib riu m Model of O rga nizi ng,• Academr of Management Review 36 (2011), pp. 381- 403.

P. Ja rzabkowski, J. Le, and A. Va n de Ven, ' Respond ing to Competing Strategic Dema nds: How Organizing. Belonging. and Performing Paradoxe.< Coevolve, • Strategic Organizatio11 II (2013), pp. 245- 280; a nd \.V. K. Smith, 'Dynamic Decision Making: A Model of Senior Leaders Managing Strategic Paradoxes: Academy ofMa11ageme11tJ011mal 57 (2014), pp. 1592- 1623.

J. Jay, 'Navigating Paradox as a Mechan is m of Change and Innovation in Hybrid Organizatio ns," Academ)' of Management Joumal 56 (2013), pp. 137- 159.

Y. Zhang. D. A. \,Valdman, Y. Han, and X. Li, "Paradoxical Leader Behaviors in People Management: Antecedents and C:Onsequences," Academr of Manage111ent Joumal 58 (201 5), pp. 538-466.

See, for example, F. Yua n and R. W. Woodma n, "Innovative Behavior in the \,Vorkplace: The Role of Performance and Image Outcome. Expectations," Academy of lv1anagement Joun1al 53, no. 2 (2010), pp. 323- 342.

See. for instance, G. P. Pisano, .. You Need an Innovation Strategy," Harvard Business Review, June 2015, pp. 44- 54.

F. H. W. Vo lberda, F. A. J. Va n den Bosch, and C. V. Heij, "Management Innovatio n: Ma nagement as Fertile Ground for Innovation," European Ma,iageme,u Revieu~ Spring 2013, pp. 1- 15.

F. Da manpour, "Organizational Innovation: A Meta-analysis of Effects of Determinants and Moderators,· Acade111y of Ma11ageme11t Joumal, September 1991, pp. 555- 590; and G. Westerman, F. W. McFarlan, and M. lansiti, "Organization Design and Effectiveness over the Innovation Life Cycle," Organization Science 17, no . 2 (2006), pp. 230- 238.

See P. Schepers and P. T. van den Berg. "Social Factors of Work- Environment Creativity,· Joumal of Busi11ess a11d Psrchology 21, no. 3 (2007), pp. 407- 428.

Ba,;ed on https://www.gore.com/ innovation-center; A. Harrington, '\¥ho's Afraid of a New Product?" Fortune, November 10, 2003,

608 Endnotes

pp. 189- 192; C. C. Manz, F. Shipper, and G. L. Stewart, "Evety0ne a Team Leader: Shared lnOuence at Vv. L. Gore and Associates,· Organizational Dynamics 38, no. 3 (2009), pp. 239- 244; Gore, "A Team-Based, Flat Lattice O rganization,· accessed July 23, 2015, http://\\~vw.gore.com/ en_xxfaboutus/ culture/ index.html; and S. Caulkin, "Gore-Text Gets Made without Managers," 111e Observer, November 1, 2008, http://W\,~v.theguard ian.com/ business/ 2008/ nov / 0 2 / gore-tex -texti I es-terri · ke 11 y.

49 S. Chang, L Jia, R. Takeuchi, and Y. Cai, "Do High-Commitment Work Systems Affect Creativity? A Multilevel Combinatio nal Approach to Employee Creativity; Journal of Applied Psychology 99 (2014 ), pp. GGS- 680.

50 M. E. Mullins, S. W. J. Kozlowski, N. Schmitt, and A. W. Howell, "The Role of the Idea Champion in Innovation: The Case of the Internet in the Mid· 1990s," Computers in Human Behavior 24, no. 2 (2008), pp. 451- 467.

51 C. Y. Murn ieks, E. Mosakowski, and M. S. Cardon, "Pathways of Passion: Identity Centra lity, r assion, and Behavior among Entrepreneurs,· Journal of Managemellt 40 (2014), pp. 1583- 1 GOG.

52 S. C. Parker, "lntrapreneurship o r Entrepreneurship?" Journal of Business Venturing, January 2011 , pp. 19- 34.

53 See, for exa mple, T. B. Lawre nce, M. K. Ma uws, B. Dyck, a nd R. F. Kleysen, "The Politics o f Organizational Leaming: Integrating Power into the 41 Framework," Academy of Management Review, January 2005, pp. 180- 191.

54 J. Kim, T. Egan, and H. Tolson, "Examining the Dimensions o f the Leam ing Organization Questionnaire: A Review and Critique o f Research Utilizing the DLOQ; Human Resource Development Review, March 2015, pp. 91- 11 2.

55 L. Bergh man, P. Matthyssens, S. Streukens, and K. Vandenbempt, "' Delibera te Lea rn ing Mecha nisms for Stimu lating Strategic Innovation Capacity; Long Range Pla1111i11g, February-April 2013, pp. 39- 71.

56 R. Chiva and J. Habib, "A Framework for Organizational Leaming: Zero , Adaptive, and Generative Leaming/ Journal of Management & Organization 21, no. 3 (2015), pp. 350- 368; and J. Kim, T. Egan, and H. Tolson, "Examining the Dimensions o f the Learning Organization Questionnaire: A Review and Critique o f Research Utilizing the D LOQ," Human Resource Development Review 14 , no. I (2015), pp. 91 - 112.

57 M. Ceme, M. Jaklic, and M. Skerlavaj, "Decoupling Management a nd Tech no logica l Innovatio ns: Resolving th e Individualis m- Collectivism Controversy," Journal of lnten1ational Management, June 2013, pp. 103- 117.

58 for contrasting v iews on episod ic and continuous change, see K. E. \.Veick and R. E. Quin n, "O rgan izational Cha nge a nd Development, • in Annual Review of Psychology, vol. 50, ed . J. T. Spence, J. M. Darley, and D. J. Foss (Palo Alto, CA: Annua l Reviews, 1999), pp. 361- 386. Cou n te rpoint based on R. Thomas, D.S. Leisa, and C. Ha rdy, "Managing O rga nizationa l Cha nge.: Negotiating Meaning and Power· Re.'iistance Relations," Organization Science 22, no. I (2011 ) , pp. 22- 41; and P. B. Vaill, Managing as a Performing Art: New Ideas for a World of Cltaolic Change (San Francisco: Jo.s.sey-Bass, 1989) .

59 D. Meinert, "Commun icate Early and Often,• HR Magazine, November 2012, p. 36; D. Meinert, "Defi ne the Goa ls; HR Magazine, November 2012, pp. 32- 33; and D. Mei nert, "Wings o f Change; HR Magazine, November 2012, pp. 30- 32.

60 Based on C. Edel hart, "\.Veatherman's Stand Against Stoty Co.sts Job; Californian, May 16, 2011, http:ff,VW\v.bakersfieldcali fomian. com/ local/x1898G79505/Weatherman.<-stand-against-stoiy-cosL<· job; and K. T. Phan, 'ABC Affi liate Fires Christia n over Strip Club Segment,• Fox News, May 10, 2011, http://nation.foxnews.com/ fi ring/2011 / 05/ 10/ abc-affi l iate-fi res-christian-over-strip-club- segment.

61 S. Halzack, "v\lhy Walmart Is Ditching IL< Celine Dion Soundtrack and Getting a DJ: Washington Post, June 3, 2015, http://\\~Vw. was h i ngtonpost.co m/ news/ bus i ness/ wp/ 2015/ 0 G/ 03/ why- \.Valmart-is-ditch i ng-its-cel in e-d io n-soundtrack-and-getting-a- deejay/ ; B. Ritho ltz, ' Wal mart Learns to Live without Everyday Poverty \.Vages, • Bloomberg View, Ju ne 11, 2015, http://"~'~"- bloombergview.com/ articles/ 2015-0G-Jl f\.Val ma rt-I ives-without- eve tyd ay-poverty-wages; and B. O'Keefe, "The Man \.Vho's Rei nventing \.Val mart: Fortune, June 4, 2015, http:// fortune. com/ 2015 /OG/ 04/ walma rt-ceo-doug-mcmil Ion/ .

62 Based on A. Lawson, "Sony Issues New Profit Wa rning Hit By Massive Smart phone Lo.sses, • lndependenl, September 17, 2014; H. Hiyama, "Sony Break-Up Call Shines Light on Electronic:.< Industry Problems: Japan Today, June 7, 2013, http://www.japantoday. com/ category/ opinions/view/sony-break-up-call-shines-light-on- electronic-industry-problems; R. Katz, "How Japan Blew Its Lead in Electronics; Wall Street Journal, March 23, 2012, p. Al S; and H. Tabuchi, "How the Parade Passed Sony By; New York Times, April 15, 2012, pp. B 1, 87.

63 Based on R. Pascale, M. Millemann, and L. Gioja, "Changing the \.Vay We Change,· Harvard Bminess Review, November- December 1997, pp. 127 - 139. The actual names of the points based on the After Action Review a re taken fro m the article, although the su mmaries a re p rovided by the authors of this book. See also "After Action Review,• Knowledge Sharing Tools and Methods Toolkit, accessed November 26, 2014, http://\\~Vw.kstoolkit.org/ After+Action+Review.

Additional Cases

1 Note. that this case is largely based o n actual events occurring at a Canadian compa ny. At the request of the individuals d irectly involved, however, the employee names and the company name. have been disguised.

2 Th is is a true s tory about a female e mployee in a Ca nadian company. The names of the people involved have been disguised. However, the events are truthful and accurate. This case is based on an inteiview with .. Julie" conducted after her release from jail. The interview took place on December 27, 2011 .

3 Th is case is based o n a real Canadian company. At the. request of the own ers, the emplo yee. names and the company name have been disguised.

4 This case. is based largely o n an extended feature news story written by K. More, "Public Service Bargaining: A Bruising Battle Lies Ahead: Ottawa Citizen, July 18, 2014, http://ottawacitizen. com/ news/ natio nal/ public-service-bargaining-a-bruising-battle- lies-ahead.

5 A. Thomson, "Tony Clement, Treasury Board President, Proposes Changes to Public Servants' Sick Leave,• Huffington Post Canada, August 2, 2014, http:/f\\~vw.huffingtonpost.ca/ 2014/02/ 08/ tony- clement-sick-leave_n_ 4 752463.html.

6 K. May, "Tony Clement 'A'ants to Cut Public Servants' Sick Days to Five,• Ottawa Citizen, September 11, 2014, http://ottawacitizen. com/ news/ national/ clement-wanL<·tO-cut-public-servants-sick- days-to-five.

T. Pedwell, "PBO Sick Leave Report: No ' Incremental' Costs to Taxpayers: Huffing/on Post Canada, July 16, 2014, h ttp://w,vw. huffingtonpost.ca/ 2014/07 / l 6/ pbo-sick-leave-report_n_5590817. html.

S. Kari, "Ex-constable Must Again Prove RCMP Haras.,ment, • Globe and Mail, December 20, 2011, http://,V\,~v.theglobeandmail.com/ news/ national/ ex-constable-must-again-prove-rcmpharassment/ article I 51366/.

S. Stewart, A. Hoffma n, and P. \.Valdie, "Female Mounties Allege Harassment Not Investigated to Protect RCM P; Canadian Press, December 20, 2011, http://www.theglobea ndmail.com/ news/

na ti o na I/ fem a le· mounties.al I ege· ha rassme.n t. not.investigated to-

pro tect-rcm p/ article IOI 6726/ .

10 S. Stewart, A. Hoffman, and P. Waldie, "Female Mounties Allege Harassment Not Investigated to Protect RCMP." Canad;a,1 Press, December 20, 2011 , http://www.theglobeandmail.com/ news/ nation a I/ fem a le · mounties.a 11 ege· ha rassme.n t. not.investigated to- pro tect-rcm p/ article IOI 6726/ .

11 S. Stewart, A. Hoffman, and P. Waldie, "Female Mounties Allege Harassment Not Investigated to Protect RCMP; Canadian Press, December 20, 2011 , http://www.theglobeandmail.com/ news/ national/ f ema le · mounties.al I ege· ha rassme.n t · not· investigated to- protect-rcm p/ article IOI 6726/ .

ll "Mo re B.C. Mounties Complain of Harassment,· CBC News, NO\..,mber 8, 2011, http://\V\V\v.cbc.ca/news/canada/britishcolumbia/ story/ 2011 / 1 l /08/ bc-rcmp-harassment. html.

13 "Lawyer 'Stun ned' RCMP Brass Came in to Settle Haras.,ment

Case: CBC News, December 9, 2011 , http://\V\,.,.v.cbc.ca/ news/ canada/story/ 201 J / 12/ 09 / rcmp-al legations-blundel I. htm I.

14 G. Ma,on, "RCMPTook Two Years to Respond to Officer's Sexual

Harassment Complaint, • Globe and Mail, December 5, 2011, http:// www. t heglobea nd ma i I .com/ news/ nat i ona 1/ bri tishcol umb i a/ gary_mason/ rcmp-took-two-years-to-respond-toofficers-sexual- harassment-complaint/ article2261049/ .

15 G. Mason, "Former Mou ntie rai nts Pictu re. of Near Dai ly Harassment: Globe and Mail, December 8, 2011, http://""'"v. theglo bea nd ma i I. com/ news/ na tion a I/ fo rmer-m o u n tie- pa i n tsp i ctu re-0 f ·near -da i I y -h aras.,m en t/ a rti cl e2 2 5 907 2/ .

16 S. Coope r, "A lleged Moun tie Harass men t Made RCMP Staffe r Fear fo r Fa mily's Lives Cou rt Hea rs,• National Post, November 18, 2011, http://news.nationa lpost.com/ 2011 / 11/ 18/ allegedmountie-harassment-made-rcmp-staffer-fear-for-familys- I i vescourt-hears/ .

17 V. Luk, "RCMP Sexual Harassment Claims Deepen after Second remale Mountie Comes Fo,ward, • National Post, N=ber JO, 2011,

http://news.nationalpost.com/ 2011/ JJ/ JO/ rcmp-sexualharas.,ment· claims-deepen-after-second-female-mountie-slamsforce/ . Material reprinted with the express pennission of: Postmedia News, a d ivi· sion of Postmedia Network Inc.

18 V. Luk, "RCMP Sexual Harassment Claims Deepen after Second remale Mountie Comes Forward,· National Post, N=ber 10, 2011, http://news.nationalpost.com/ 2011/ JJ/ JO/ rcmp-sexualharas.,ment· claims-deepen-after-second-female-mountie-slamsforce/. Material reprinted with the express pennis.~ion of: rostmedia News, a division of rostmedia Network Inc.

19 C. Freeze, 'Top Mountie Delivers Candid, Scathing View of Force

at the Brink,· Globe and Mail, December 20, 2011 , http://\V\\'\V. theglobeandmail.com/ news/ politir.</ top-mountie-deliverscandid- scathing-view-of-force-at-the-brink/article22 77241 / .

20 D. Leblanc, "RCMP Introduce New Code of Conduct,• Globe and

Mail, April 26, 2014, http://www.theglobea ndmail.com/ news/ politics/ rcmp-i ntroduce-new-code-of-conduct/ article 1823 71 70/.

21 G. Ma,on, "RCMPTook Two Years to Respond to Officer's Sexual Harassment Complaint, • Globe and Mail, December 5, 2011, http:// www. t heglobea nd m ai I .com/ news/ nat i ona 1/ bri ti sh col umb ia/ gary_mason/ rcmp-took-two-years-to-respond-toofficers-sexual- harassment-complaint/ article2261049/ .

22 A. Woo, "Sexual Harassment Claims against RCMP Rear.h 336, •

Globe and Mail, July 18, 2014, http://\\'\VW.theglobeandmail.com/ news/ british.columbia/sexual·hara~'iment·claims·against·rcmp· rear.h-33 6/ article 19669218/.

Endnotes 609

23 I. Bailey, "Lawyers Preparing Possib le Class Action Lawsuit against RCMP, • Globe and Mail, December 21. 2011, http://\V\\'\V. theglobeandmail.com/ news/ national/ lawyers-preparingpossible- class-action-suit-agai nst-rcmp/article22 7881 7 / .

24 Dr. Ka therine Breward, "Disab ility Accom modations and Promotion., at Bunco, • Case Research Journal 30, no. I (2010), pp. 65-72. Repri nted with permission.

25 National Digestive Diseases Information Clearinghouse (NDDIC), Digestive Diseases National lmritute of Hen/ti,, publication number 06-3410 (Bethesda, MD: Author, 2006). http://digestive.niddk.nih. gov/ ddiseases/pubs/ crohns/ #stress.

26 National Digestive Diseases Information Clearinghouse (NDDIC), Digestive Diseases National lmtit!lle of Hen/ti,, publication number 06-3410 (Bethesda, MD: Author, 2006). http://dige.,tive.niddk.nih. gov/ ddisea.ses/pubs/ crohns/ #stress.

2 7 "Cro hn's Disease;" MedicineNet.ccm, accessed December 3. 2014, http://\V\\'\v.medicinenet.com/ crohns_disease/ article.htm.

28 This ca<e was p repared by Nancy La ngton, Sauder Sr.hool of Business. This case is based on an actual set of events, although all names have been r.hanged. C> 2006 by Nancy Langton. Case sources: ·z.oo Mulls Qualities Sought in Next Director,• toledoblade. com, September 9, 2005, http://toledoblade.com; S. Eder, ·z.oo Task Force Sets JOO-Day Target for Submitting Investigation Report,• toledoblade.com, March 25, 2005; S. Eder, "Experience with Animals Lacking for Operations Chief: toledoblade.com, March 13, 2005; S. Eder, "Reichard Held in High Esteem by rellO\v Zoo Veterinarians,• toledoblade.com, March 9, 2005; M Greenwell, "Z.Oo Sees New Job As Way to Fix Problems, • toledoblade.com, June 23, 2005; J. Laidman, "Emp loyee Relations Top Zoo Leaders' List, • toledoblade.com, May 22, 2005; J. Laidman, "Embattled Zoo Leaders Quit,· toledo· blade.com, May 5, 2005; J. Laidman, "Clash of Philosophies, Loss of Animals Triggered Turmoil; toledoblade.com, Marr.h 13, 2005; J. La idman, "Fired Zoo Veterinarian's File Mostly Positive., w ith a Few Concerns,· toledoblade.com, March 9, 2005; J. La id man, "Toledo Zoo Veterinarian Bla mes Fi ring on His Warni ngs to USDA,· toledoblade.com, Marr.h 8, 2005; J. Laidman, "Reds Probe 2 Animal Death, at Toledo Z.Oo, • toledoblade.com, February 24, 2004; J. La idman a nd T. Vezner, "Staff Offers Criticism, Praise in Z.Oo Survey,• toledoblade.com, May 27, 2005; J. Laidman and T. Vezner, "Vet's Deal Isn't First to Silence Ex-Official,• toledoblade.com, May 2, 2005; J. Laidman and T. Vezner, "Internal Battles Plu nge Zoo into a Ca ldron of Discontent,• toledoblade.com, March 20, 2005; S. H. Staelin, "Z.Oo Board Tackles Cha llenges: toledoblade.com, April 16, 2005; T. Vezner, •z.oo Name., Chief Veterinarian, Ignoring Task Force's Proposal,• toledoblade.com, December 17, 2005; T. Vezner, "Consu lta nt Hired to Oversee Zoo Ad mi nistration, " toledoblade.com, July 20, 2005; T. Vezner, "Z.Oo's Ex-Vet on Ha nd for Report: toledoblade.com, Ju ly 9, 2005; T. Vezner, •z.oo Task Force Report Demands Broad Changes,· toledoblade.com, July 7, 2005; T. Vezner and J. Laidman, "Flurry of Changes Leaves Workers Reeling; toledoblade.com, May 6, 2005; T. Vezner, "Settlement Bars Zoo Vet from Speaking to Panel: toledoblade.com, May I. 2005; T. Vezner, •z.oo Task Force's Questions for Den nler Hit Time Li mit, · toledoblade.com, April I, 2005; T. Vezner, "Inquiry in 2004 Disclosed Problems: toledoblade.com, March 27, 2005; Lucas County Commissioners Special Citizens Task Force for the Zoo, Fina l Report, July 8, 2005, http://""'"v.co.l ucas.oh.us/ comm iS-<ioners/ Final_ Report_Z.Oo _ Ta.,k_ Force.pdf; h ttp://,vww. toledozoo.org. accessed January 17, 2006; and http://www. doctortim.org. accessed January 17, 2006.

GLOSSARY/SUBJECT INDEX The page on which a key term is defined is printed in boldface.

A ability, 241 absenteeism, 95, 181

abuse of power, 284-285 accountability, 229-230 achievement-oriented leader, 391

acquisitions, 360 action research. A change process based on the systematic collec-

tion of data and then selection of a change action based on what the analyzed data indicate. 497-498

adjourning. The final stage in group development for temporaiy groups, where attention is directed toward wrapping up activities rather than task performance. 212-213, 215

affect. A broad range of feelings that people experience. 60-61 , 60f affective commitment. An individual's emotional attachment to and

identification with an organization, and a belief in its values. 96

affective component. The emotional or feeling segment of an attitude. 89

affective computing, 68 affec tive events theory (AET). A model that suggests that work-

place events cause emotional reactions on the part of employees, which then influence workplace attitudes and behaviours. 63

aggressiveness, 345 ag reeableness. A personality factor that describes the degree to

which a person is good-natured, cooperative, and trusting. 50, 53-54,385

agreement, 320 all-channel network, 256 alternative work arrangements, 180-184 ambassador, 105

ambiguity, 316 analyst, 105 anchored employee, 131

anchoring bias. A tendency to fixate on initial information, from which one then fails to adequately adjust for subsequent information, 422

anger, 66, 73 anthropology, 11

anti -bullying legislation, 286, 349

apologies, 2961

appreciative inquiry (Al). An approach to change that seeks to identify the unique qualities and special strengths of an organiza- tion, which can then be built on to improve performance. 498-499, 4981

apps, 262 arbitrator. A third party to a negotiation who has the authority to dic-

tate an agreement. 334 arousal, 141

assertiveness, 385 attitudes. Positive or negative feelings about objects, people, or

events. 21 , 89

6 10

affective component, 89 behavioural component, 89 changing attitudes, 114-115

cognitive component, 89 components of, 89-90, 891 employee engagement, 98-99

job involvement, 96-97 job satisfaction, 90-96 organizational commitment, 96

perceived organizational support (POS), 97 attribution theory. The theory that when we observe what seems

like atypical behaviour by an individual, we attempt to determine whether it is internally or externally caused. 40-42, 4 lf, 69

attribution theory of leadership. A leadership theory that says that leadership is merely an attribution that people make about other individuals. 403

authentic leaders. Leaders who know who they are, know what they believe in and value, and act on these values and beliefs openly and candidly. Their followers could consider them to be ethical people. 399

authoritative command, 319 authority. The rights inherent in a managerial position to give orders

and to expect the orders to be obeyed. 461

delegation of authority, 488-489 autonomy. The degree to which the job provides substantial free-

dom, independence, and discretion to the individual in scheduling the work and determining the procedures to be used in carrying it out. 174, 176

availability bias. The tendency for people to base their judgments on information that is readily available to them rather than com- plete data. 423

avoiding, 317, 319

B Baby Boomer, 15, 8fr87, 861 bad boss, 347, 385

bargaining. See negotiation bargaining strategies, 323~25 bargaining zone. The zone between each party's resistance point,

assuming that there is overlap in this range. 326

barriers to effective communication. See communication barriers bases of power, 277-280 BATNA. The best alternative to a negotiated agreement; the outcome

an individual faces if negotiations fail. 321~22, 326, 328 behavioural accounting, 9

behavioural change, 320 behavioural component. An intention to behave in a certain way

toward someone or something. 89 behavioural economics, 9

behavioural ethics. Analyzing how people actually behave when confronted with ethical dilemmas. 437

behavioural finance, 9

behavioural theories of leadership. Theories that propose that specific behaviours differentiate leaders from nonleaders, ~ 88

behaviourism. A theory that argues that behaviour follows stimuli in a relatively unthinking manner. 142

benefits, 131

benevolence, 241, 453

best-practice model, 454 bias

anchoring bias, 422 availability bias, 423 confirmation bias, 423 hindsight bias, 424 overconfidence bias, 422

big data, 7-8 Big Five Personality Model. A personality assessment model that

taps five basic dimensions. 4!H;4, 511, 521, 223, 384, 432

biogs, 262 boards of d irectors, and diversity, 104

body movements, 263 bonus. An individual-based incentive plan that rewards employees

for recent performance rather than historical performance. 131, 168-169

books on OB, 28

bookselling industry, 7-8 boss effect, 64 boundary spanning. When individuals form relationships outside

their formally assigned groups. 464-465 bounded rationality. Limitations on a person's ability to interpret,

process, and act on information. 418-420, 419 brainstorming. An idea-generation process that specifically encour-

ages any and all alternatives, while withholding any criticism of those alternatives. 429

broken windows theory, 437-438

bullying in the workplace, 286 bureaucracy. An organizational design with highly routine operating

tasks achieved through specialization, formalized rules and regula- tions, tasks that are grouped into units, centralized authority, nar- row spans of control, and decision making that follows the chain of command. 466-468, 467

burnout, 63 butlers, 98

c Canada

ESOPs in, 170 global competition, 13

harassment, 286-287 job redesign, 177 labour relations dispute, 334

multiculturalism, 88

values in Canadian worl<place, 86-88, 861 capacity, 477 care, 436

caring, 355 cases and case incidents

Active Cultures, 378-379 Apple Goes Global, 31

Barry's Peer Becomes His Boss, 306 Big Data for Dummies, 31-32 Can You Read Emotions from Faces?, 77- 78 Creative Deviance: Bucking the Hierarchy?, 486-487

Delegate Power, or Keep It Close?, 305 Disorderly Conduct, 340-341

Equity and Executive Pay, 159 "I Detest Bureaucracy," 487 "If Two Heads Are Better than One, Are Four Even Better?", 447

Glossary/Subj ect Index 6 1 1

lntragroup Trust and Survival, 237 Job Crafting, 112-1 13

Leadership by Algorithm, 410-411 Leadership Mettle Forged in Battle, 410 Motivation for Leisure, 194 Organizational Leveraging of Social Media, 270-271

Pay Raises Every Day, 194-195 The Place Makes the People, 377-378 The Power of Quiet, 75-76

PowerPoint Purgatory, 271- 272 Pros and Cons of Collective Bargaining, 341-342 Sprucing Up Walmart, 517

Tall Poppy Syndrome, 76 Tongue-Tide in Teams, 236

Wage Reduction Proposal, 160 Walking the Walk, 113-114

When Companies Fail to Change, 517-518 Youngest Female Self-made Billionaire, 446-447

centralization. The degree to which decision making is concentrated at a single point in the organization. 463

CEO compensation, 193 chain, 255- 256 chain of command. The unbroken line of authority that extends from

upper organizational levels to the lowest level and clarifies who reports to whom. 461-462

challenge stressors, 118

chameleon, 105

change action research, 497-498 appreciative inquiry (Al), 498-499, 4981 approaches to change management, 494-499 barriers to change, 359 change agents, 494, 497, 500

culture for change, 506-511 culture of innovation, 507-509 fair implementation of change, 503

forces for change, 492-494, 4921 global context, 51 1 Keller's eight-step plan for implementing change, 496-497,

4971 learning organization, 509-511 Lewin's three-step model, 495-496, 4951

limited focus of change, 502 low tolerance for change, 501 opportunities for change, 493-494

in organizational culture, 368-372 organizational culture as barrier to, 359

in paradox situations, 506-507 people who accept change, 504

poinVcounterpoint, 514

politics of change, 505 resistance to change, 500-505 selection of people who accept change, 504

in social psychology, 11

targets for change, 4941 change agents. People who act as catalysts and assume the

responsibility for managing change activities. 494, 497, 500 channel. The medium through which a message travels. 248-251 ,

2481 channel richness. The amount of information that can be transmit -

ted during a communication episode. 2481, 249-250

6 12 Glossary/Subject Index

charismatic leadership, 392-393, 3931, 397, 411-413

charismatic leadership theory. A leadership theOf)' that states that followers make attributions of heroic or extraordinaiy leadership abilities when they observe certain behaviours. 392-393

cheating, 437

chess, and intuition, 420

choice, 150, 276

circular structure. An organizational structure in which executives are at the centre, spreading their vision outward in rings grouped by function (managers, then specialists, then worl<ers). 473

co-optation, 503-504

coalitions, 2821

code of ethics, 369

coercion, 504

coercive power. A power base that is dependent on fear of the negative results from failing to comply. 277, 279

cognitive c,omponent. The opinion or belief segment of an attitude. 89

cognitive ca. 104-105 cognitive evaluation theory. Offering extrinsic rewards (for

example, pay) for work effort that was previously rewarding intrinsically will tend to decrease the overall level of a person's motivation. 149

collective socialization, 3651

collective turnover, 94

collectivism. A national culture attribute that describes a tight social frameworl< in which people expect others in groups of which they are a part to look after them and protect them. 83, 334

commitment, 279, 503

common sense opinions, 7

communication

in bad times, 249

and change, 503

channel, 248-251, 2481

communication barriers. See communication barriers communication process, 24S-251, 2481

and conflict, 3 15

contextual differences, 264

cultural context, 264, 2641

cultural guide, 264-266

direction of communication, 254-255

downward communication, 254-255

electronic communications, 259-262

global context, 263-264

the grapevine, 256-257

interunit communication, 507

lateral communication, 255

modes of communication, 257-263

nonverbal communication, 262-263

open communication, and conflict, 321

oral communication, 257-258

organizational communication, 254-257

and resistance to change, 503

small-group networks, 255-256, 2561

upward communication, 255

written communication, 25S-262

communic atio n apprehension. Undue tension and anxiety about oral communication, written communication, or both. 248

communication barriers, 251-254, 263-264

emotions, 252

filtering, 251

information overload, 252

language, 252-253

lying, 253-254

nonverbal communication, 262-263

selective perception, 251-252

silence, 253

c,ommunication process. The steps between a source and a receiver that result in the transfer and understanding of meaning. 248-251, 2481

competence, 150, 2901 competition, 492-493, 510

complexity, 4 77

compliance, 279

compromising, 317, 3 19, 325

computers, and emotions, 68

conceptualizers, 49

c,oncil iator. A trusted third party who provides an informal communication link between the negotiator and the

opponent. 334

conference calling, 258

c,onfirmation bias. The tendency to seek out information that reaf- firms past choices and to discount information that contradicts past judgments. 423

c,onflict. A process that begins when one party perceives that

another party has negatively affected or is about to negatively affect something that the first party cares about. 312

and communication, 315

constructive conflict, 3 10 , 320-321

dyadic conflict, 314

dysfunctional conflict, 312, 314-315, 320

functional conflict, 312, 314-315, 320

global context, 334-335

intergroup conflict, 3 14

intragroup conflict, 3 14

loci of conflict, 314-315

managed level of conflict, 229

outcomes, 320-321

personal variables, 316

personality conflicts, 320

poinVcounterpoint, 338

process conflict, 312-313

relationship conflict, 229, 312-313

resolution of. See conflict resolution

role conflict, 206-207

sources of conflict, 315-317

structural variables, 316

task conflict, 229, 3 12-313

types of conflict, 312-314

conflict resolution, 3181

and culture, 334-335

dual concern theory, 317-319

individuals and, 318-320

open communication, 321

personality conflicts, 320

c,onformity. Adjusting one's behaviour to align with the norms of the

group. 209, 2961

c,onscientiousness. A personality factor that describes the degree to which a person is responsible, dependable, persistent, and achievement-oriented. 50-51, 385

c,onsensus. A behavioural rule that considers whether everyone faced with a similar situation responds in the same way. 41

c,onsideratio n. The extent to which a leader is likely to have job relationships characterized by mutual trust, respect for employees' ideas, and regard for their feelings. 386

consistency. A behavioural rule that considers whether the individual has been acting in the same way overtime. 6-7, 41

constructive conflict , 312, 320-321

consultation, 2821

context, 39 contingency approach. An approach taken by OB that considers

behaviour wijhin the context in which it occurs. 11-1 2

contingency theories, 388-392

contingent employee, 131 contingent reward leadership, 395

continuance commitment. An individual's calculation to stay with an organization based on the perceived costs of leaving the orga- nization. 96

continuous reinforcement. A desired behaviour is reinforced each and every time ij is demonstrated. 142-143

contract, 131 contrast effects. The concept that our reaction to one person is

often influenced by other people we have recently encountered. 43-44

cookie experiment, 284 core self-evaluation. Bottom-line conclusions individuals have

about their capabilities, competence, and worth as a person. ~ 7. 91

core values. The primary or dominant values that are accepted throughout the organization. 353

corporate boards, 104

corporate social responsibility (CSR), 437 cost-minimization strategy. strategy that emphasizes tight cost

controls, avoidance of unnecessary innovation or marketing expenses, and price cutting. 475-476

counterproductive behaviour, 94-95

counterproductive work behaviour (CWB). Actions that actively damage the organization, including stealing, behaving aggressively toward co-workers, or being late or absent. 94-96

creative environment, 433-434

creative outcomes (Innovation), 434-435

creative potential, 432-433

creativity. The ability to produce novel and useful ideas. 425, 430

causes of creative behaviour, 432-434

creative behaviour, 431-432

creative environment, 433-434

creative outcomes (innovation), 434-435

creative potential, 432-433

creative problem solving, 448-449

in decision making, 43~35

and ethics, 433

and expertise, 432-433 global context, 440

and intelligence, 432

and personality, 432 poinVcounterpoint, 443

three-stage model of creativity, 430, 4311

Criminal Code, 349

critical events, 208

critical feedback, 19

cross-function (or project) team. A group of employees at about the same hierarchical level, but from different work areas, who come together to accomplish a task. 202-203

cross-training, 178

cultural c,ode-switching. The ability to modify behaviour in specific situations to accommodate varying cultural norms. 106

cultural context, 264, 2641

Glossary/Subj ect Index 6 13

cultural differences

see also global context conflict resolution, 334~5

negotiation, 330, 335

organizational structure, 4~81

and positive organizational culture, 371-372

values, 88 cultural intelligence (CQ). The ability to understand someone's

unfamiliar and ambiguous gestures in the same way as would people from that person's culture. 103-106, 104, 1051

cultural values, 83-86

GLOBE framework, 86 Hofstede's framework for assessing cultures, 83-86, 851

culture. See cultural differences; global context; organizational culture customer departmentalization, 461

customer satisfaction, 92- 93

customer service, 16

cynicism, 289

D Dark Triad. A group of negative personality traijs consisting of

Machiavellianism, narcissism, and psychopathy. 54-56, 385

deafness, 259

decentral ization. The degree to which decision making is distributed to lower-level employees. 463

decision_ The choice made from two or more alternatives. 416

decision making

bounded rationality, 418-420

creativity in, 430-435

and ethics, 435-439, 4391

global context, 440

group decision making, 425-430

individual decision making, 417-424, 425-426

intuitive decision making, 42~21

judgment shortcuts, 421-424

rational decision-making process, 416-417, 4161

decoding, 248 deep acting. Trying to modify one's true inner feelings to match what

is expected. 63, 330

deep-level diversity. Differences in values, personality, and work preferences that become progressively more important for deter- mining similarity as people get to know one another better. 100

defensive behaviours, 2951

delegation. Assignment of authority to another person to carry out specific duties, allowing the employee to make some of the deci- sions. 461 , 488-489

departmentalization. The basis on which jobs are grouped together. 459-461

dependence. B's relationship to A when A possesses something that B requires. 276, 280-282, 316

design, 498

destiny, 498

destructive conflict, 3 12

developmental assignments, 329 deviant workplace behaviour. Voluntary behaviour that violates sig-

nificant organizational norms and, in so doing, threatens the well- being of the organization or its members. Also called anusocial behaviour or workplace incivffity. 94, 210-211, 210!

direction, 126

direction of communication, 254-255

directive leader, 390-391

disability, 259

discovery, 498

6 14 Glossary/Subj ect Index

displayed emotions. Emotions that are organizationally required and considered appropriate in a given job. 62

dissatisfaction, 130f

dissatisfiers, 130f

distinctiveness. A behavioural rule that considers whether an indi· vidual acts similarly across a variety of situations. 41

distributive bargaining. Negotiation that seeks to divide up a fixed amount of resources; a win-lose solution. 323-324, 323f

distributive justice. Perceived fairness of the amount and allocation of rewards among individuals. 146-147

distrust, 244- 245

diversity