Management
Chrisyanqu
StevenLattimoreMcShane_MaryAnnYoungVonGlinow-Organizationalbehavioremergingknowledgeglobalreality2015.pdf
organizational behavior
mcs62589_fm_i-xxviii_1.indd Page i 12/5/13 5:50 PM f-496 mcs62589_fm_i-xxviii_1.indd Page i 12/5/13 5:50 PM f-496 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
This page intentionally left blank
s eve n t h e d i t i o n
Steven L. McShane The University of Western Australia
Mary Ann Von Glinow Florida International University
organizational behavior
mcs62589_fm_i-xxviii_1.indd Page iii 12/5/13 5:50 PM f-496 mcs62589_fm_i-xxviii_1.indd Page iii 12/5/13 5:50 PM f-496 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
ORGANIZATIONAL BEHAVIOR: EMERGING KNOWLEDGE, GLOBAL REALITY, SEVENTH EDITION
Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2015 by McGraw-Hill Education. All rights reserved. Printed in the United States of America. Previous editions © 2013, 2010, and 2008. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of McGraw-Hill Education, including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning.
Some ancillaries, including electronic and print components, may not be available to customers outside the United States.
This book is printed on acid-free paper.
1 2 3 4 5 6 7 8 9 0 DOR/DOR 1 0 9 8 7 6 5 4
ISBN 978-0-07-786258-9 MHID 0-07-786258-9
Senior Vice President, Products & Markets: Kurt L. Strand Vice President, Content Production & Technology Services: Kimberly Meriwether David Managing Director: Paul Ducham Executive Brand Manager: Michael Ablassmeir Executive Director of Development: Ann Torbert Managing Development Editor: Laura Hurst Spell Editorial Coordinator: Claire Wood Marketing Manager : Elizabeth Trepkowski Director, Content Production: Terri Schiesl Content Project Manager: Katie Klochan Media Project Manager: Sue Lombardi Buyer II: Debra R. Sylvester Design: Debra Kubiak Cover Image: © pavelgr/shutterstock Lead Content Licensing Specialist: Lori Hancock Typeface: 10.25/12.25 Adobe Garamond Pro Regular Compositor: Aptara®, Inc. Printer: R. R. Donnelley
All credits appearing on page or at the end of the book are considered to be an extension of the copyright page.
Library of Congress Cataloging-in-Publication Data
McShane, Steven Lattimore. Organizational behavior / Steven L. McShane, The University of Western Australia, Mary Ann Von Glinow, Florida International University.—Seventh edition. pages cm Includes bibliographical references and index. ISBN 978-0-07-786258-9 (alk. paper)—ISBN 0-07-786258-9 (alk. paper) 1. Organizational behavior. I. Von Glinow, Mary Ann Young, 1949- II. Title. HD58.7 .M42 2015 658—dc23 2013045419
The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a website does not indicate an endorsement by the authors or McGraw-Hill Education, and McGraw-Hill Education does not guarantee the accuracy of the information presented at these sites.
www.mhhe.com
mcs62589_fm_i-xxviii_1.indd Page iv 06/12/13 2:13 PM user-f-w-198 mcs62589_fm_i-xxviii_1.indd Page iv 06/12/13 2:13 PM user-f-w-198 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
v
Steven L. McShane Steven L. McShane is Winthrop Professor of Management at the University of Western Australia (UWA) Business School, where he receives high teaching ratings from stu- dents in Perth, Singapore, Manila, and other cities where UWA has offered its pro- grams. He previously taught in the business faculties at Simon Fraser University and Queen’s University in Canada. Steve is also a popular visiting speaker, having given dozens of invited talks and seminars in recent years to faculty and students in the United States, China, Canada, Malaysia, India, and other countries.
Steve earned his Ph.D. from Michigan State University, where he specialized in orga- nizational behavior and labor relations. He also holds a Master’s of Industrial Relations from the University of Toronto and an undergraduate degree from Queen’s University in Canada. Steve is a past president of the Administrative Sciences Association of Canada (the Canadian equivalent of the Academy of Management) and served as Director of Graduate Programs in Simon Fraser University’s business faculty. He has conducted executive programs with Nokia, TÜV-SÜD, Wesfarmers Group, Main Roads WA, McGraw-Hill, ALCOA World Alumina Australia, and many other organizations.
Along with co-authoring Organizational Behavior, Seventh Edition, Steve is lead co-author of Canadian Organizational Behaviour, Eighth Edition (2012), Organisa- tional Behaviour: Asia Pacific, Fourth Edition (2013), and M: Organizational Behav- ior, Second Edition (2014). He is also co-author of editions or translations of his organizational behavior books in China, India, Quebec, Taiwan, and Brazil. Steve has published several dozen articles and conference papers on workplace values, training transfer, organizational learning, exit-voice-loyalty, employee socialization, wrongful dismissal, media bias in business magazines, and other diverse topics.
Steve enjoys spending his leisure time hiking, swimming, body board surfing, canoeing, skiing, and travelling with his wife and two daughters.
Mary Ann Von Glinow Dr. Von Glinow is a Knight Ridder Eminent Scholar Chair in International Manage- ment, and has been Director of the Center for International Business Education and Research at Florida International University for the past 17 years. She is the 2010 to 2012 President of the Academy of International Business (AIB) and an editor of JIBS. Previously on the Marshall School faculty of the University of Southern California, she has an MBA and a Ph.D. in Management Science from The Ohio State Univer- sity. Dr. Von Glinow was the 1994–95 President of the Academy of Management, the world’s largest association of academicians in management, and is a Fellow of the Academy and the Pan-Pacific Business Association. She sits on 11 editorial review boards and numerous international panels. She teaches in executive programs in Latin America, Central America, the Caribbean region, Asia, and the U.S.
Dr. Von Glinow has authored over 100 journal articles and 13 books. Her most recent books include Managing Multinational Teams (Elsevier, 2005) and Organiza- tional Learning Capability (Oxford University Press, 1999; in Chinese and Spanish translation), which won a Gold Book Award from the Ministry of Economic Affairs
about the AUTHORS
mcs62589_fm_i-xxviii_1.indd Page v 12/5/13 5:50 PM f-496 mcs62589_fm_i-xxviii_1.indd Page v 12/5/13 5:50 PM f-496 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
vi About the Authors
in Taiwan in 2002. She has also coauthored the popular Organizational Behavior, Sixth Edition, textbook and M: Organizational Behavior, First Edition (McGraw-Hill/Irwin, 2012). She heads an international consortium of researchers delving into “Best International Human Resource Management Practices,” and her research in this arena won an award from the American Society for Competitiveness’ Board of Trustees. She also received an NSF grant to study globally distributed work. Dr. Von Glinow is the 2005 Academy of Manage- ment recipient of the Distinguished Service Award, which is one of the Academy’s three highest honors bestowed.
Mary Ann is consultant to a number of domestic and multinational enterprises, and serves as a mayoral appointee to the Shanghai Institute of Human Resources in China. Since 1989, she has been a consultant in General Electric’s “Workout” and “Change Acceleration Program” including “Coaching to Management.” Her clients have included Asia Development Bank, American Express, Diageo, Knight Ridder, Burger King, Pillsbury, Westinghouse, Southern California Edison, Aetna, State of Florida, Kaiser Permanente, TRW, Rockwell Int’l, Motorola, N.Y. Life, Amoco, Lucent, and Joe’s Stone Crabs, to name a few. She is on the Board of Friends of WLRN, Fielding University, Friends of Bay Oaks, the Pan-Pacific Business Association, and Animal Alliance in Los Angeles. She is actively involved in several animal welfare organizations and received the 1996 Humanitarian Award of the Year from Miami’s Adopt-a-Pet.
mcs62589_fm_i-xxviii_1.indd Page vi 12/5/13 5:50 PM f-496 mcs62589_fm_i-xxviii_1.indd Page vi 12/5/13 5:50 PM f-496 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Dedicated with love and devotion to Donna, and to our wonderful daughters, Bryton and Madison
—S.L.M.
Dedicated to Zack, Emma, Googun, Blue, Lucky, Chloe, and Grazia —M.A.V.G.
dedication
mcs62589_fm_i-xxviii_1.indd Page vii 12/5/13 5:50 PM f-496 mcs62589_fm_i-xxviii_1.indd Page vii 12/5/13 5:50 PM f-496 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
viii
4
brief CONTENTS
1 2
3
INTRODUCTION Chapter 1 Introduction to the Field of Organizational
Behavior 2
INDIVIDUAL BEHAVIOR AND PROCESSES Chapter 2 Individual Behavior, Personality, and
Values 30
Chapter 3 Perceiving Ourselves and Others in Organizations 62
Chapter 4 Workplace Emotions, Attitudes, and Stress 92
Chapter 5 Foundations of Employee Motivation 122
Chapter 6 Applied Performance Practices 156
Chapter 7 Decision Making and Creativity 186
TEAM PROCESSES Chapter 8 Team Dynamics 218
Chapter 9 Communicating in Teams and Organizations 252
Chapter 10 Power and Influence in the Workplace 282
Chapter 11 Conflict and Negotiation in the Workplace 310
Chapter 12 Leadership in Organizational Settings 340
ORGANIZATIONAL PROCESSES Chapter 13 Designing Organizational Structures 368
Chapter 14 Organizational Culture 396
Chapter 15 Organizational Change 424
ADDITIONAL CASES Case 1 A MIR Kiss? 452
Case 2 Arctic Mining Consultants 453
Case 3 Chengdu Bus Group 455
Case 4 Fran Hayden Joins Dairy Engineering 456
Case 5 From Lippert-Johanson Incorporated to Fenway Waste Management 458
Case 6 From REO to Nuclear to Nucor 459
Case 7 Going to the X-Stream 462
Case 8 The Regency Grand Hotel 464
Case 9 Simmons Laboratories 465
Case 10 Star Enterprises—Rita’s Issues at Work 469
Case 11 Tamarack Industries 470
Case 12 The Outstanding Faculty Award 471
Appendix A Theory Building and Systematic Research Methods 473
Appendix B Scoring Keys for Self-Assessment Activities (available online at www.mhhe.com/mcshane7e) B1
Endnotes EN-1
Photo Credits PC-1
Organization Index I-1
Name Index I-3
Glossary/Subject Index I-24
mcs62589_fm_i-xxviii_1.indd Page viii 06/12/13 7:38 PM user-f467 mcs62589_fm_i-xxviii_1.indd Page viii 06/12/13 7:38 PM user-f467 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
ix
2 contents
INDIVIDUAL BEHAVIOR AND PROCESSES
CHAPTER 2 Individual Behavior, Personality, and Values 30
MARS Model of Individual Behavior and Performance 32
Employee Motivation 33 Ability 33 Role Perceptions 34 Situational Factors 35
Types of Individual Behavior 35 Task Performance 35 Organizational Citizenship 36 Counterproductive Work Behaviors 37 Joining and Staying with the Organization 37 Maintaining Work Attendance 38
Personality in Organizations 38 Personality Determinants: Nature versus Nurture 39 Five-Factor Model of Personality 40 Jungian Personality Theory and the Myers-Briggs Type Indicator 42 Personality Testing in Organizations 44
Debating Point: Should Companies Use Personality Tests to Select Job Applicants? 44
Values in the Workplace 45 Types of Values 45 Values and Individual Behavior 47 Values Congruence 47
Ethical Values and Behavior 48 Three Ethical Principles 49 Moral Intensity, Moral Sensitivity, and Situational Influences 49 Supporting Ethical Behavior 51
Values Across Cultures 52 Individualism and Collectivism 52 Power Distance 53 Uncertainty Avoidance 54 Achievement-Nurturing Orientation 54
Preface xvi
1INTRODUCTION CHAPTER 1 Introduction to the Field of Organizational Behavior 2
Welcome to the Field of Organizational Behavior! 4
The Field of Organizational Behavior 4 Historical Foundations of Organizational Behavior 5 Why Study Organizational Behavior? 6
Perspectives of Organizational Effectiveness 7
Open Systems Perspective 8
Global Connections 1.1: Zara Relies on Open Systems Thinking for Fast Fashion 9
Organizational Learning Perspective 10 High-Performance Work Practices (HPWP) Perspective 13 Stakeholder Perspective 14 Connecting the Dots: Organizational Effectiveness and Organizational Behavior 16
Contemporary Challenges for Organizations 17
Globalization 17 Increasing Workforce Diversity 18 Emerging Employment Relationships 20
Anchors of Organizational Behavior Knowledge 22
The Systematic Research Anchor 23
Debating Point: Is There Enough Evidence to Support Evidence-Based Management? 24
The Multidisciplinary Anchor 24 The Contingency Anchor 25 The Multiple Levels of Analysis Anchor 25
The Journey Begins 25 Chapter Summary 26
Key Terms 26
Critical Thinking Questions 27
Case Study: Improving Health by Getting Lean 27 Web Exercise: Diagnosing Organizational Stakeholders 28
Self-Assessment: It all Makes Sense? 28
mcs62589_fm_i-xxviii_1.indd Page ix 12/5/13 5:50 PM f-496 mcs62589_fm_i-xxviii_1.indd Page ix 12/5/13 5:50 PM f-496 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
x Contents
Team Exercise: Personal and Organizational Strategies for Developing a Global Mindset 89
Self-Assessment: How Much Does Work Define Your Self-Concept? 90
CHAPTER 4 Workplace Emotions, Attitudes, and Stress 92
Emotions in the Workplace 94 Types of Emotions 94 Emotions, Attitudes, and Behavior 95
Debating Point: Is Having Fun at Work Really a Good Idea? 98
Managing Emotions at Work 99 Emotional Display Norms Across Cultures 100 Emotional Dissonance 100
Emotional Intelligence 101 Emotional Intelligence Outcomes and Training 102
Job Satisfaction 103 Job Satisfaction and Work Behavior 105 Job Satisfaction and Performance 106 Job Satisfaction and Customer Satisfaction 106 Job Satisfaction and Business Ethics 107
Organizational Commitment 108 Consequences of Affective and Continuance Commitment 109 Building Organizational Commitment 109
Work-Related Stress and Its Management 110 General Adaptation Syndrome 110 Consequences of Distress 111 Stressors: The Causes of Stress 112
Global Connections 4.1: Working to Death in China 113
Individual Differences in Stress 114 Managing Work-Related Stress 114
Chapter Summary 116
Key Terms 117
Case Study: Rough Seas on the LINK650 117 Class Exercise: Strengths-Based Coaching 118 Team Exercise: Ranking Jobs on Their Emotional Labor 119
Self-Assessment: Are You in Touch with Your Emotions? 120
CHAPTER 5 Foundations of Employee Motivation 122
Employee Engagement 124
Employee Drives and Needs 125 Individual Differences in Needs 126 Maslow’s Needs Hierarchy Theory 127
Global Connections 2.1: Working with High Power Distance in China 54
Caveats About Cross-Cultural Knowledge 55 Cultural Diversity Within the United States 55
Chapter Summary 56
Key Terms 56
Critical Thinking Questions 57
Case Study: Pushing Papers Can Be Fun 57 Class Exercise: Test Your Knowledge of Personality 58
Class Exercise: Personal Values Exercise 59 Team Exercise: Ethics Dilemma Vignettes 59 Self-Assessment: Are You Introverted or Extroverted? 60
CHAPTER 3 Perceiving Ourselves and Others in Organizations 62
Self-Concept: How We Perceive Ourselves 64 Self-Concept Complexity, Consistency, and Clarity 64 Self-Enhancement 66 Self-Verification 67 Self-Evaluation 67 The Social Self 68 Self-Concept and Organizational Behavior 69
Perceiving the World Around Us 70 Perceptual Organization and Interpretation 72
Specific Perceptual Processes and Problems 73 Stereotyping in Organizations 73 Attribution Theory 76 Self-Fulfilling Prophecy 78 Other Perceptual Effects 79
Improving Perceptions 81 Awareness of Perceptual Biases 81
Debating Point: Do We Need Diversity Training Programs? 81
Improving Self-Awareness 82 Meaningful Interaction 83
Global Connections 3.1: Experiencing Meaningful Interaction on the Front Line 84
Global Mindset: Developing Perceptions Across Borders 84
Developing a Global Mindset 85 Developing a Global Mindset Through Immersion 86
Chapter Summary 86
Key Terms 87
Critical Thinking Questions 87
Case Study: Hy Dairies, Inc. 88 Web Exercise: Diversity & Stereotyping on Display in Corporate Websites 89
mcs62589_fm_i-xxviii_1.indd Page x 12/5/13 5:51 PM f-496 mcs62589_fm_i-xxviii_1.indd Page x 12/5/13 5:51 PM f-496 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Contents xi
Job Design Practices 167 Job Design and Work Efficiency 167 Scientific Management 168 Problems with Job Specialization 168
Job Design and Work Motivation 169 Core Job Characteristics 170
Global Connections 6.2: Customer Talks Raise Task Significance and Identity 171
Critical Psychological States 171 Individual Differences 171 Social and Predictability Job Characteristics 172
Job Design Practices that Motivate 172 Job Rotation 172 Job Enlargement 173 Job Enrichment 173
Empowerment Practices 175 Supporting Empowerment 175
Global Connections 6.3: Svenska Handelsbanken Branch-Level Empowerment 176
Self-Leadership Practices 176 Self-Leadership Strategies 177 Effectiveness of Self-Leadership 179 Personal and Situational Predictors of Self-Leadership 179
Chapter Summary 180
Key Terms 181
Critical Thinking Questions 181
Case Study: Yakkatech, Inc. 181 Team Exercise: Is Student Work Enriched? 182 Self-Assessment: What Is Your Attitude Toward Money? 184
CHAPTER 7 Decision Making and Creativity 186
Rational Choice Paradigm of Decision Making 188 Rational Choice Decision-Making Process 189 Problems with the Rational Choice Paradigm 190
Identifying Problems and Opportunities 190 Problems with Problem Identification 191
Global Connections 7.1: Famous Missed Opportunities 192
Identifying Problems and Opportunities More Effectively 193
Searching for, Evaluating, and Choosing Alternatives 193
Problems with Goals 193 Problems with Information Processing 193 Problems with Maximization 195 Evaluating Opportunities 196 Emotions and Making Choices 196 Intuition and Making Choices 198 Making Choices More Effectively 198
Implementing Decisions 199
Learned Needs Theory 128 Four-Drive Theory 130
Expectancy Theory of Motivation 133 Expectancy Theory in Practice 134
Organizational Behavior Modification and Social Cognitive Theory 136
Organizational Behavior Modification 136
Global Connections 5.1: Reinforcing Work Behavior Through Gamification 138
Social Cognitive Theory 138
Goal Setting and Feedback 139 Balanced Scorecard 141 Characteristics of Effective Feedback 141 Sources of Feedback 143 Evaluating Goal Setting and Feedback 144
Organizational Justice 144 Equity Theory 144
Debating Point: Does Equity Motivate More than Equality? 145
Procedural Justice 147 Chapter Summary 148
Key Terms 149
Critical Thinking Questions 149
Case Study: Predicting Harry’s Work Effort 150 Case Study: Cincinnati Super Subs 151 Class Exercise: Needs Priority Exercise 152 Class Exercise: The Learning Exercise 153 Team Exercise: Bonus Decision Exercise 153 Self-Assessment: Need Strength Questionnaire 154
CHAPTER 6 Applied Performance Practices 156
The Meaning of Money in the Workplace 158
Financial Reward Practices 159 Membership- and Seniority-Based Rewards 160 Job Status–Based Rewards 160 Competency-Based Rewards 161 Performance-Based Rewards 161
Improving Reward Effectiveness 163
Debating Point: Is It Time to Ditch the Performance Review? 164
Link Rewards to Performance 164 Ensure That Rewards Are Relevant 165 Use Team Rewards for Interdependent Jobs 165 Ensure That Rewards Are Valued 165 Watch Out for Unintended Consequences 165
Global Connections 6.1: When Rewards Go Wrong 166
mcs62589_fm_i-xxviii_1.indd Page xi 12/5/13 5:51 PM f-496 mcs62589_fm_i-xxviii_1.indd Page xi 12/5/13 5:51 PM f-496 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
xii Contents
3
Virtual Teams 239
Debating Point: Are Virtual Teams More Trouble Than They’re Worth? 240
Success Factors for Virtual Teams 241
Team Decision Making 241 Constraints on Team Decision Making 242 Improving Creative Decision Making in Teams 243 Brainstorming 243
Chapter Summary 245
Key Terms 245
Critical Thinking Questions 246
Case Study: ArbreCorp Ltée 246 Team Exercise: Team Tower Power 247 Team Exercise: Human Checkers 248 Team Exercise: Mist Ridge 249 Self-Assessment: What Team Roles Do You Prefer? 250
CHAPTER 9 Communicating in Teams and Organizations 252
The Importance of Communication 254
A Model of Communication 255 Influences on Effective Encoding and Decoding 256
Communication Channels 257 Internet-Based Communication 257 Problems with E-Mail 258
Global Connections 9.1: Good-Bye E-Mail, Hello Social Media! 259
Workplace Communication Through Social Media 260 Nonverbal Communication 261
Choosing the Best Communication Channel 262 Social Acceptance 262 Media Richness 263 Communication Channels and Persuasion 265
Communication Barriers (Noise) 266 Information Overload 267
Cross-Cultural and Gender Communication 268 Nonverbal Differences Across Cultures 268
Global Connections 9.2: Politely Waiting for Some Silence 269
Gender Differences in Communication 269
Improving Interpersonal Communication 270 Getting Your Message Across 270 Active Listening 271
Improving Communication Throughout the Hierarchy 272
Workspace Design 272 Internet-Based Organizational Communication 272 Direct Communication With Top Management 273
Evaluating Decision Outcomes 199 Escalation of Commitment 200 Evaluating Decision Outcomes More Effectively 201
Creativity 201 The Creative Process 202 Characteristics of Creative People 203 Organizational Conditions Supporting Creativity 205 Activities That Encourage Creativity 205
Employee Involvement in Decision Making 206
Debating Point: Should Organizations Practice Democracy? 207
Global Connections 7.2: Brasilata, the Ideas Company 208
Benefits of Employee Involvement 208 Contingencies of Employee Involvement 209
Chapter Summary 210
Key Terms 211
Critical Thinking Questions 211
Case Study: Employee Involvement Cases 212 Team Exercise: Where in the World Are We? 213 Class Exercise: The Hopping Orange 216 Class Exercise: Creativity Brainbusters 216 Self-Assessment: Measuring Your Creative Personality 216
TEAM PROCESSES
CHAPTER 8 Team Dynamics 218
Teams and Informal Groups 220 Informal Groups 222
Advantages and Disadvantages of Teams 223 The Challenges of Teams 224
A Model of Team Effectiveness 225 Organizational and Team Environment 225
Team Design Elements 226 Task Characteristics 226 Team Size 228 Team Composition 228
Global Connections 8.1: Finding Team Players at Menlo Innovations 229
Team Processes 231 Team Development 231 Developing Team Identities and Mental Models 232 Team Norms 234 Team Cohesion 234 Team Trust 237
Self-Directed Teams 238 Success Factors for Self-Directed Teams 239
mcs62589_fm_i-xxviii_1.indd Page xii 12/5/13 5:51 PM f-496 mcs62589_fm_i-xxviii_1.indd Page xii 12/5/13 5:51 PM f-496 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Contents xiii
CHAPTER 11 Conflict and Negotiation in the Workplace 310
The Meaning and Consequences of Conflict 312 Is Conflict Good or Bad? 312 The Emerging View: Task and Relationship Conflict 313
Global Connections 11.1: High Cost of On-Board Conflicts 314
Conflict Process Model 316
Structural Sources of Conflict in Organizations 317 Incompatible Goals 317 Differentiation 317 Interdependence 318 Scarce Resources 319 Ambiguous Rules 319 Communication Problems 319
Interpersonal Conflict Handling Styles 319 Choosing the Best Conflict Handling Style 321 Cultural and Gender Differences in Conflict Handling Styles 323
Structural Approaches to Conflict Management 323 Emphasizing Superordinate Goals 323 Reducing Differentiation 324 Improving Communication and Mutual Understanding 324 Reducing Interdependence 325 Increasing Resources 326 Clarifying Rules and Procedures 326
Third-Party Conflict Resolution 326 Choosing the Best Third-Party Intervention Strategy 327
Resolving Conflict through Negotiation 327 Bargaining Zone Model of Negotiations 328
Debating Point: Is Creating Value Such a Good Negotiation Strategy? 329
Strategies for Claiming Value 329 Strategies for Creating Value 330 Situational Influences on Negotiations 331
Chapter Summary 332
Key Terms 333
Critical Thinking Questions 333
Case Study: Car Wars at Wolfsburg 334 Class Exercise: The Contingencies of Conflict Handling 335 Team Exercise: Ugli Orange Role Play 338 Self-Assessment: What Is Your Preferred Conflict Handling Style? 338
CHAPTER 12 Leadership in Organizational Settings 340
What Is Leadership? 342 Shared Leadership 342
Communicating Through the Grapevine 274 Grapevine Characteristics 274 Grapevine Benefits and Limitations 274
Debating Point: Should Management Use the Grapevine to Communicate to Employees? 275 Chapter Summary 276
Key Terms 276
Critical Thinking Questions 277
Case Study: Communicating with the Millennials 277 Team Exercise: Active Listening Exercise 278 Team Exercise: Cross-Cultural Communication Game 279 Self-Assessment: Are You an Active Listener? 280
CHAPTER 10 Power and Influence in the Workplace 282
The Meaning of Power 284
Sources of Power in Organizations 286 Legitimate Power 286 Reward Power 288 Coercive Power 288 Expert Power 288 Referent Power 289
Contingencies of Power 290 Substitutability 290 Centrality 290 Visibility 291 Discretion 291
Debating Point: How Much Power Do CEOs Really Possess? 292
The Power of Social Networks 293 Social Capital and Sources of Power 293 Gaining Power Through Social Networks 294
Consequences of Power 296
Influencing Others 296
Global Connections 10.1: The Art and Science of Managing Your Boss 297
Types of Influence Tactics 298 Consequences and Contingencies of Influence Tactics 301
Organizational Politics 303 Minimizing Organizational Politics 303
Chapter Summary 304
Key Terms 305
Critical Thinking Questions 305
Case Study: Resonus Corporation 306 Team Exercise: Deciphering the Network 307 Team Exercise: Managing Your Boss 308 Self-Assessment: How Do You Influence Coworkers and Other Peers? 308
mcs62589_fm_i-xxviii_1.indd Page xiii 06/12/13 7:38 PM user-f467 mcs62589_fm_i-xxviii_1.indd Page xiii 06/12/13 7:38 PM user-f467 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
xiv Contents
Forms of Departmentalization 379 Simple Structure 380 Functional Structure 380
Global Connections 13.1: Toyota Shifts Gears from a Functional to Regional Structure 381
Divisional Structure 381 Team-Based Structure 384 Matrix Structure 385 Network Structure 387
Contingencies of Organizational Design 389 External Environment 389 Organizational Size 390 Technology 391 Organizational Strategy 391
Chapter Summary 391
Key Terms 392
Critical Thinking Questions 392
Case Study: Merritt’s Bakery 393 Team Exercise: The Club Ed Exercise 394 Self-Assessment: What Organizational Structure Do You Prefer? 394
CHAPTER 14 Organizational Culture 396
Elements of Organizational Culture 398 Espoused vs. Enacted Values 399
Global Connections 14.1: BP’s Espoused vs. Enacted Values 400
Content of Organizational Culture 400 Organizational Subcultures 401
Deciphering Organizational Culture Through Artifacts 402
Organizational Stories and Legends 403 Organizational Language 403 Rituals and Ceremonies 403 Physical Structures and Symbols 404
Is Organizational Culture Important? 404 Contingencies of Organizational Culture and Effectiveness 405
Debating Point: Is Corporate Culture an Overused Phrase? 407
Organizational Culture and Business Ethics 408
Merging Organizational Cultures 408 Bicultural Audit 409 Strategies for Merging Different Organizational Cultures 409
Changing and Strengthening Organizational Culture 411
Actions of Founders and Leaders 411 Align Artifacts with the Desired Culture 412 Introduce Culturally Consistent Rewards and Recognition 412
Transformational Leadership Perspective 344 Develop and Communicate a Strategic Vision 344 Model the Vision 346 Encourage Experimentation 346 Build Commitment Toward the Vision 347 Transformational Leadership and Charisma 347 Evaluating the Transformational Leadership Perspective 348
Managerial Leadership Perspective 348 Task-Oriented and People-Oriented Leadership 350 Servant Leadership 350 Path-Goal Leadership Theory 351 Other Managerial Leadership Theories 354 Leadership Substitutes 355
Implicit Leadership Perspective 356 Prototypes of Effective Leaders 356 The Romance of Leadership 356
Competency Perspective of Leadership 357 Authentic Leadership 359 Competency Perspective Limitations and Practical Implications 360
Cross-Cultural and Gender Issues in Leadership 360
Debating Point: Should Leaders Really Be Authentic All the Time? 361
Gender and Leadership 362 Chapter Summary 362
Key Terms 363
Critical Thinking Questions 363
Case Study: A Window on Life 364 Team Exercise: Leadership Diagnostic Analysis 365 Self-Assessment: Do Leaders Make a Difference? 365
ORGANIZATIONAL PROCESSES
CHAPTER 13 Designing Organizational Structures 368
Division of Labor and Coordination 370 Division of Labor 370 Coordinating Work Activities 371
Elements of Organizational Structure 373 Span of Control 374
Debating Point: Should Organizations Cut Back Middle Management? 376
Centralization and Decentralization 377 Formalization 377 Mechanistic versus Organic Structures 378
4
mcs62589_fm_i-xxviii_1.indd Page xiv 06/12/13 7:38 PM user-f467 mcs62589_fm_i-xxviii_1.indd Page xiv 06/12/13 7:38 PM user-f467 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Contents xv
Debating Point: What’s the Best Speed for Organizational Change? 442
Large Group Intervention Approach 445 Parallel Learning Structure Approach 446
Cross-Cultural and Ethical Issues in Organizational Change 446
Organizational Behavior: The Journey Continues 447 Chapter Summary 447
Key Terms 448
Critical Thinking Questions 448
Case Study: TransAct Insurance Corporation 449 Team Exercise: Strategic Change Incidents 450 Self-Assessment: Are You Tolerant of Change? 450
ADDITIONAL CASES Case 1: A MIR Kiss? 452 Case 2: Arctic Mining Consultants 453 Case 3: Chengdu Bus Group 455 Case 4: Fran Hayden Joins Dairy Engineering 456 Case 5: From Lippert-Johanson Incorporated to Fenway
Waste Management 458
Case 6: From REO to Nuclear to Nucor 459 Case 7: Going to the X-Stream 462 Case 8: The Regency Grand Hotel 464 Case 9: Simmons Laboratories 465 Case 10: Star Enterprises—Rita’s Issues at Work 469 Case 11: Tamarack Industries 470 Case 12: The Outstanding Faculty Award 471
Appendix A Theory Building and Systematic Research Methods 473
Appendix B Scoring Keys for Self-Assessment Activities (available online at www.mhhe.com/mcshane7e) B1
Endnotes EN-1 Photo Credits PC-1 Organization Index I-1 Name Index I-3 Glossary/Subject Index I-24
Support Workforce Stability and Communication 412 Use Attraction, Selection, and Socialization for Cultural “Fit” 413
Organizational Socialization 414 Organizational Socialization as a Learning and Adjustment Process 415 Organizational Socialization and Psychological Contracts 415 Stages of Organizational Socialization 416 Improving the Socialization Process 417
Chapter Summary 419
Key Terms 419
Critical Thinking Questions 420
Case Study: Hillton’s Transformation 420 Team Exercise: Organizational Culture Metaphors 421 Class Exercise: Diagnosing Corporate Culture Proclamations 422
Self-Assessment: Which Corporate Culture Do You Prefer? 423
CHAPTER 15 Organizational Change 424
Lewin’s Force Field Analysis Model 426
Understanding Resistance to Change 427 Why Employees Resist Change 428
Unfreezing, Changing, and Refreezing 431 Creating an Urgency for Change 431 Reducing the Restraining Forces 433
Global Connections 15.1: Communicate, Involve, or Change Your People 435
Refreezing the Desired Conditions 436
Leadership, Coalitions, and Pilot Projects 436 Transformational Leadership and Change 436
Global Connections 15.2: Driving Change Through a “One Ford” Vision 437
Coalitions, Social Networks, and Change 437 Pilot Projects and Diffusion of Change 438
Four Approaches to Organizational Change 440 Action Research Approach 440 Appreciative Inquiry Approach 441
mcs62589_fm_i-xxviii_1.indd Page xv 06/12/13 7:38 PM user-f467 mcs62589_fm_i-xxviii_1.indd Page xv 06/12/13 7:38 PM user-f467 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Welcome to the dynamic world of organizational behavior! Knowledge is replacing infra- structure. Social media and virtual teams are transforming the way employees interact and accomplish organizational objectives. Values and self-leadership are replacing command- and-control management. Companies are looking for employees with emotional intelli- gence and team competencies, not just technical smarts.
Organizational Behavior, Seventh Edition, is written in the context of these emerging workplace realities. This edition explains how emotions are the foundation of employee motivation, attitudes, and decisions; how social networks generate power and shape com- munication patterns; how self-concept influences individual behavior, team cohesion, and leadership; and how adopting a global mindset has become an important employee charac- teristic in this increasingly interconnected world. This book also presents the reality that organizational behavior is not just for managers; it is relevant and valuable to anyone who works in and around organizations.
Linking Theory With Reality Every chapter of Organizational Behavior is filled with examples to make OB knowledge more meaningful and reflect the relevance and excitement of this field. These stories about real people and organizations translate academic theories into relevant knowledge and real- life applications. For example, we describe how Hilcorp Energy Company has become one of the most successful oil and gas companies in the United States through job design and organization-level rewards; how JCPenney’s sales dropped by one-third after its incoming CEO and fellow executives made a series of decision blunders; how Michigan software company Menlo Innovations has an intensive team-based “pair programming” work ar- rangement; how Telstra CEO David Thodey orchestrated a remarkable turnaround of the Australian telecommunications giant; how Deloitte Touche Tohmatsu employees are mo- tivated through innovative game-based positive reinforcement to document client visits and attend online courses; and how online shoe retailer Zappos thrives on a strong corpo- rate culture.
These real-life stories appear in many forms. Every chapter is filled with photo captions and in-text anecdotes about work life. Lengthier examples appear in Global Connections features, which “connect” OB concepts with real organizational incidents and situations. Case studies in each chapter also connect OB concepts to the emerging workplace realities. These stories provide representation across the United States and around the planet, cover- ing a wide range of industries—from software to government, and from small businesses to the largest global organizations.
Global Focus From its first edition, this book has been crafted around the reality that we live in a world of increasing globalization. The Seventh Edition continues this global focus by introducing the theme in the first chapter and by discussing global and cross-cultural issues in many other chapters. Furthermore, every chapter includes truly global examples, not just how American companies operate in other parts of the world. Some examples include how Tencent founder and CEO “Pony” Ma Huateng relies on transformational leadership rather than charisma to lead China’s social media revolution; how the MARS model of individual behavior helps Iceland Foods Group in the United Kingdom create a high-performing workforce; how Brasilata in Sao Paulo, Brazil, succeeds through employee involvement and creativity; how the CEO of Alcoa Russia fended off corruption by emphasizing the company’s values; and how DHL Express in Africa succeeds through high employee engagement.
preface
xvi
mcs62589_fm_i-xxviii_1.indd Page xvi 12/5/13 5:51 PM f-496 mcs62589_fm_i-xxviii_1.indd Page xvi 12/5/13 5:51 PM f-496 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Preface xvii
Contemporary Theory Foundation Organizational Behavior has a solid foundation in contemporary and classic research and writing, as reflected in the references. Each chapter is based on dozens of articles, books, and other sources. The most recent literature receives thorough coverage, resulting in what we believe is the most up-to-date organizational behavior textbook available. The topics in this book reflect our strong belief that organizational behavior is multi-disciplinary, not aligned mainly with one social science field. This book’s references also reveal that we reach out to marketing, information management, human resource management, and other business dis- ciplines for new ideas. Our approach is also to focus information that readers value, namely OB knowledge and practices. Consequently, with a few classic exceptions, we avoid writing a “who’s who” book; most scholars are named in the references, not in the main text.
One of the driving forces for writing Organizational Behavior is to provide a faster con- duit for emerging OB knowledge to reach students, practitioners, and fellow scholars. To its credit, this is apparently the first major OB book to discuss the full self-concept model (not just core self-evaluation), workplace emotions, social identity theory, global mindset, four- drive theory, specific elements of social networks, appreciative inquiry, affective events the- ory (but without the jargon), somatic marker theory (also without the jargon), virtual teams, mindfulness in ethical behavior, Schwartz’s values model, employee engagement, learning orientation, workaholism, and several other groundbreaking topics. This edition continues this leadership by introducing the latest knowledge on predictors of moral intensity, distin- guishing the two main types of matrix organizational structure, the degrees of virtuality (ranging from in-situ to virtual teams), task interdependence as a contingency in the team cohesion-performance relationship, communicator characteristics that influence coding and decoding, and the social characteristics of job design.
Organizational Behavior Knowledge for Everyone Another distinctive feature of Organizational Behavior is that it is written for everyone in organizations, not just managers. The philosophy of this book is that everyone who works in and around organizations needs to understand and make use of organizational behavior knowledge. People throughout the organization—systems analysts, production employees, accounting professionals—are taking on more responsibilities as companies remove layers of management and give the rest of us more autonomy and accountability for our work out- comes. This book helps everyone to make sense of organizational behavior, and provides the conceptual tools to work more effectively in the workplace.
Active Learning and Critical Thinking Support We teach organizational behavior, so we understand how important it is to use a textbook that offers deep support for active learning and critical thinking. Business school accreditation asso- ciations also emphasize the importance of the learning experience, which further reinforces our attention on classroom activities. This Seventh Edition includes almost three dozen case stud- ies in various forms and levels of complexity, as well as four dozen self-assessments, most of which have been empirically tested and validated. This book is also a rich resource for in-class activities, some of which are not available in other organizational behavior books, such as the Employee Involvement Cases, Deciphering the (Social) Network, Test Your Knowledge of Personality, Mist Ridge, and the Cross-Cultural Communication Game.
mcs62589_fm_i-xxviii_1.indd Page xvii 12/5/13 5:51 PM f-496 mcs62589_fm_i-xxviii_1.indd Page xvii 12/5/13 5:51 PM f-496 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
xviii Preface
Changes to the Seventh Edition In response to reviews by dozens of organizational behavior instructors and researchers in several countries, there are numerous improvements throughout the book. Chapter 8 (teams) and Chapter 12 (leadership) have been significantly revised, and almost every other chapter has noticeable updates and revisions. Along with dozens of conceptual improve- ments, this edition has substantially revised the examples. All chapter-opening case studies are new or revised. Most captioned photos and Global Connections features are new or updated. We have also added more than 100 new in-text examples. Here are the main con- ceptual improvements in Organizational Behavior, Seventh Edition:
• Chapter 1: Introduction to the Field of Organizational Behavior—This opening chap- ter received considerable revision in the previous edition, so this edition has relatively minor refinements and updates, notably regarding the four perspectives of organizational effectiveness.
• Chapter 2: Individual Behavior, Personality, and Values—This edition updates several topics in this chapter, including new information about organizational citizenship behaviors, elements of task performance, the importance of role clarity, predictors of moral intensity, and mindfulness in ethical behavior. The sections on personality and personal values have also been further refined in several places.
• Chapter 3: Perceiving Ourselves and Others in Organizations—This book was appar- ently the first to discuss the full model of self-concept and its relevance to organiza- tional behavior. This edition further refines this important topic, including a new exhibit that illustrates the full set of self-concept characteristics and processes. Other improvements to this chapter are found in the topics on attribution rules, fundamental attribution error, and improving perceptions through meaningful interaction.
• Chapter 4: Workplace Emotions, Attitudes, and Stress—This was the first OB book to discuss theories of emotion (i.e., affective events theory, somatic marker hypothesis, and affect infusion model) and to integrate those concepts with attitudes, motivation, decision making, and other topics. This edition continues this tradition by updating information on types of emotions, the relationship between emotions and attitudes, and emotional labor. The topics of cognitive dissonance and emotional intelligence outcomes and training have also been updated.
• Chapter 5: Foundations of Employee Motivation—This chapter has relatively minor updating, including some rewriting on employee drives and Maslow’s needs hierarchy.
• Chapter 6: Applied Performance Practices—This edition introduces recent job design knowledge about the social characteristics of jobs as well as the predictability or information processing demands of jobs.
• Chapter 7: Decision Making and Creativity—The most noticeable change in this chapter is that the topic of escalation of commitment is significantly rewritten and updated. You will also find minor rewriting and updating on subjective expected utility, problems with problem identification, and a few other topics.
• Chapter 8: Team Dynamics—This chapter has been substantially revised and updated. The types of teams are now discussed around the emerging taxonomy of team permanence, skill differentiation, and authority differentiation. The team decision- making section has been substantially rewritten, including the addition of brainwriting as a team structure to improve creative decisions in teams. The team environment topic has been rewritten to distinguish environmental resources from drivers of change within teams. The task characteristics discussion now points out the tension between task complexity and task ambiguity. The virtual teams topic incorporates the emerging concept of virtuality. The chapter now outlines two key contingencies
mcs62589_fm_i-xxviii_1.indd Page xviii 12/5/13 5:51 PM f-496 mcs62589_fm_i-xxviii_1.indd Page xviii 12/5/13 5:51 PM f-496 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Preface xix
(task interdependence and team norms) in the team cohesion-performance relation- ship. The outdated “groupthink” concept has been replaced with overconfidence as a team decision-making constraint. The topics of team diversity and team development processes (team identities and mental models) have also been revised.
• Chapter 9: Communicating in Teams and Organizations—Along with almost complete replacement or updating of examples throughout this chapter, this edition refines and updates the topic of effective coding and decoding. There is also minor rewriting on the topics of direct communication with top management and work- place communication through social media.
• Chapter 10: Power and Influence in the Workplace—The previous edition substantially revised this chapter (particularly on social networks), whereas this edition has relatively minor changes. In particular, the topics of impression management and ingratiation as well as minimizing organizational politics have been rewritten.
• Chapter 11: Conflict and Negotiation in the Workplace—This chapter has minor changes and updated content, particularly on task conflict, emotional stability as a fac- tor that minimizes the link with relationship conflict, and conflict avoidance strategies.
• Chapter 12: Leadership in Organizational Settings—This chapter has been completely reorganized and substantially rewritten. Transformational leadership is widely con- sidered the core perspective on this subject, so we now begin the chapter with the transformational leadership perspective (after the chapter introduction, which also describes shared leadership). The transformational leadership perspective also now includes “encourage experimentation” as one of its four elements. The second per- spective, managerial leadership, is described and contrasted with transformational leadership. The managerial leadership perspective incorporates earlier behavioral leadership concepts, contemporary contingency leadership theories, and servant leadership. The other two leadership perspectives—implicit leadership and leader- ship competencies—have minor updates from the previous edition.
• Chapter 13: Designing Organizational Structures—This chapter revises and updates the matrix structure topic, including the two main forms of this structure (divisional- based and project-based), and specific problems with matrix structures. Other parts of this chapter, such as organic structures, received more subtle updating and revision.
• Chapter 14: Organizational Culture—The section on changing and strengthening organizational culture has been revised, particularly with the addition of supporting workforce stability and communication. The issue of espoused versus enacted values is more clearly highlighted.
• Chapter 15: Organizational Change—This edition streamlines the discussion on resistance to change and updates the discussion of why employees resist change.
mcs62589_fm_i-xxviii_1.indd Page xix 12/5/13 5:51 PM f-496 mcs62589_fm_i-xxviii_1.indd Page xix 12/5/13 5:51 PM f-496 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
acknowledgments
Organizational behavior is a fascinating subject. It is also incredibly relevant and valuable, which becomes apparent while developing a world-class book such as Organizational Behav- ior, Seventh Edition. Throughout this project, we witnessed the power of teamwork, the ex- citement of creative thinking, and the motivational force of the vision that we collectively held as our aspiration. The tight coordination and innovative synergy was evident through- out this venture. Our teamwork is even more amazing when you consider that most team members on this project are scattered throughout the United States, and the lead co-author (Steve) spends most of his time on the other side of the planet!
Executive brand manager Mike Ablassmeir led the development of Organizational Behav- ior with unwavering enthusiasm and foresight. Managing development editor Laura Hurst Spell orchestrated the daily process with superhuman skill and determination, which is par- ticularly important given the magnitude of this revision, the pressing deadlines, and the 24-hour time zones in which we operated. Jennifer Blankenship, our photo researcher, con- tinues to amaze us. She tracked down photos that we sought from every corner of the globe. Debra Kubiak created a refreshing book design that elegantly incorporated the writing, ex- hibits, anecdotes, photos, and many other resources that we pack into this volume. We also extend our thanks to Elisabeth Nevins Caswell for superb copy editing, Katie Klochan for leading the production process like a precision timepiece, and Elizabeth Trepkowski for her excellent marketing and sales development work. Thanks to you all. This has been a truly wonderful journey!
Several dozen instructors around the world reviewed parts or all of Organizational Behavior, Seventh Edition, or related editions in other countries over the past few years. Their compli- ments were energizing, and their suggestions significantly improved the final product. The following people from U.S. colleges and universities provided the most recent feedback for improvements specifically for this edition:
Brenda Bradford Missouri Baptist University
Tristan Davison Daytona State College
Ruben Delgado California State Polytechnic University, Pomona
Steven Elias New Mexico State University
Nathan Heller Tarleton State University
Avan Jassawalla SUNY Geneseo
Rusty Juban Southeastern Louisiana University
Douglas McCabe Georgetown University
Antoinette Phillips Southeastern Louisiana State University
Vana Prewitt Mount Olive College
Joy Smith Elizabeth City State University
Grady Meeks Daytona State College
Jody Fry Texas A&M Central Texas
Meera Venkatachalam University of New Hampshire, Durham
Angela Murphy Florida A&M University
xx
mcs62589_fm_i-xxviii_1.indd Page xx 12/5/13 5:51 PM f-496 mcs62589_fm_i-xxviii_1.indd Page xx 12/5/13 5:51 PM f-496 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Acknowledgments xxi
We also extend our sincere thanks to Eileen Hogan for exceptional work on revision of the test bank, as well as to Judith Bulin, Linda M. Hoffman, and Todd Korol for their assistance in creating and updating the Connect and LearnSmart content. In addition, we thank the many instructors in the United States and abroad who contributed cases and exercises to this edition of Organizational Behavior.
Steve also extends special thanks to his students for sharing their learning experiences and assisting with the development of the organizational behavior textbooks he writes in the United States, Canada, and the Asia-Pacific region. Along with working with Mary Ann, Steve is honored to work with his other co-authors, including Kevin Tasa (Schulich School of Business, York University) and Sandra Steen (University of Regina) for the Canadian edition, and Mara Olekalns (Melbourne Business School) and Tony Travaglione (Pro vice-chancellor, Curtin Business University) for the Asia-Pacific edition. He also thanks the co-authors of other translations and adaptations. Steve is grateful to his colleagues at the University of Western Australia for their support during these changing times. But more than anything else, Steve is forever indebted to his wife Donna McClement and to their wonderful daughters, Bryton and Madison. Their love and support give special meaning to Steve’s life.
Mary Ann would also like to acknowledge the many professionals at McGraw-Hill/Irwin who have worked to make the 7th edition a reality. In addition, she would like to thank the many, many students who have used and hopefully enjoyed this book, so a big shout out to all students everywhere who have used and enjoyed previous editions of this book. She would also like to thank the faculty and staff at Florida International University, and also her CIBER staff: Sonia, Nathalie, and Sara-Michelle. Most importantly though, Mary Ann thanks coauthor Steve McShane for his tireless efforts. Finally, Mary Ann would like to thank her family, starting with the immediate ones, Emma, Zack, Googun, Chloe, Lucky, and Blue. She would also like to thank John, Rhoda, Lauren, Lindsay, and Christen. She also acknowledges the critical role that some very special people play in her life: Janet, Peter M., Bill, Karen, Alan, Danny, Peter W., Letty D., John D, CEK and Jeff, Damian, Debra, Mary T, Linda C., and Susan RW. Thanks to you all!
mcs62589_fm_i-xxviii_1.indd Page xxi 12/5/13 5:51 PM f-496 mcs62589_fm_i-xxviii_1.indd Page xxi 12/5/13 5:51 PM f-496 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
DEBATING POINTS Debating Point boxes help students to think critically and to recognize that even seemingly obvious ideas have logical counterarguments. Debating Points also raise the bar by focusing on topics that are central to the world of work.
debating point IS THERE ENOUGH EVIDENCE TO SUPPORT EVIDENCE-BASED MANAGEMENT?
One of the core anchors of organizational behavior is that knowledge must be built on a solid foundation of scientifically based research. This evidence-based management (EBM) approach particularly embraces scientific methods—relevant measures, appropriate sampling, systematic experimental de- sign, and the like—because they produce more valid theories to guide management decisions. Scholars also advise managers to become more aware of these well-studied cause-effect princi- ples, and to use diagnostic tools (such as surveys and check- lists) to effectively apply those principles in the workplace. Invariably, supporters of the evidence-based management movement contrast this systematic approach with reliance on management fads, hyped consulting, or untested personal men- tal models. It seems obvious that we should rely on good evidence rather than bad evidence (or no evidence at all) to make sound decisions in the workplace. Yet there is another side to this debate.92 The question isn’t whether good evidence is valuable; it is about the meaning of “good evidence.” One concern is that scholars might be advocating an interpretation of good evidence that is far too narrow. They typically limit evidence to empirical research and consider qualitative information “anecdotal.” Albert Einstein tried to avoid this questionable view by keeping the following message framed on his wall: “Not everything that can be counted counts, and not everything that counts can be counted.”
Another concern is that managers don’t view organizational research as particularly relevant to the issues they face.93 This partly occurs because academic journals usually set very high standards for studies, requiring uncontaminated, quantifiable measures in environments that control for other factors. But managers do not operate in such pristine conditions. Their world is much more complex, with more obscure indicators of key variables. One indicator of this research–practice gap is that most organizational studies are correlational, whereas managers typically require knowledge of behavioral interven- tions. Only about 2 percent of organizational studies are real-world interventions.94
A third critique of the EBM movement is that the systematic elements of organizational research studies (e.g., sample size, measurement reliability, advanced data analysis methods) sometimes mask other potentially serious faults. Cross-cultural studies, for example, often use college student samples to rep- resent an entire culture. Lab studies with students assume they replicate workplace conditions, without considering substan- tial differences in skills and team dynamics between the two settings. Indeed, some meta-analyses report substantially dif- ferent results of studies using students versus employees. Fi- nally, even if the published research is valid, it is usually biased because studies with nonsignificant results are much less likely to be published.
mcs62589_ch01_002-029.indd Page 24 08/11/13 4:36 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
supporting the learning process
AN INTERNATIONAL AUTHOR TEAM FOR THE GLOBAL EMPLOYEE
Drawing on their extensive
international teaching and research
experience, the authors have produced
a book that is highly regarded for its
global focus. Steve McShane teaches in
Australia and Singapore and gives talks
each year to schools throughout Asia
and North America. As Director of
the Center for International Business
Education, Mary Ann Von Glinow
regularly visits and conducts research
in South America, China, and
elsewhere around the world.
xxii
mcs62589_fm_i-xxviii_1.indd Page xxii 12/5/13 5:51 PM f-496 mcs62589_fm_i-xxviii_1.indd Page xxii 12/5/13 5:51 PM f-496 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
REAL-WORLD EXAMPLES BRING OB TO LIFE Every chapter is filled with examples to make OB knowledge more meaningful and reflect the relevance and excitement of this field. Opening vignettes set the stage; captioned photos depict OB concepts; and Global Connections features present more detailed vignettes.
Working with High Power Distance in China97
As the only Westerner in a 50-employee start-up winery in China, Emilie Bourgois soon noticed that Chinese managers seemed to use their power more directly than did European or American bosses. “I was surprised to see that taking the initiative most of the time was seen as rude and as a failure to respect the executives’ authority,” says Bourgois, a public rela- tions professional from Bordeaux, France. “At work, everyone had to perform well in their own tasks, but permission was required for anything other than what was expected.” This high power distance was also apparent in how Chi- nese managers interacted with staff. “Western-style bosses tend to develop a closer relationship with employees,” Bour- gois suggests. “The hierarchy is much more clearly divided in Chinese-dominant companies than it is in foreign ones.” Bourgois worked well with her colleagues at the Chinese winery, but she acknowledges that “beyond that, there is still an important cultural gap.” She is now employed in the Beijing office of executive recruitment firm Antal International, where cultural differences seem to be less pronounced because the company has team building events to improve bonding and mutual understanding.
global connections 2.1
Emilie Bourgois, second from right with coworkers at Antal International in Beijing, discovered in an earlier job that Chinese-dominant companies have higher power distance compared with most Western firms.
mcs62589_ch02_030-061.indd Page 54 08/11/13 4:51 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
SELF-ASSESSMENT
HOW MUCH DOES WORK DEFINE YOUR SELF-CONCEPT? Work is an important part of our lives, but some people view it as secondary to other life interests, whereas others view work as central to their identity as individuals. The following scale estimates the extent to which you view work as a central or not-so-central life interest. Read each of the statements below and decide how accurate each one is in describing your focus in life. Then, use the scoring key
Work Centrality Scale
PLEASE INDICATE THE EXTENT TO WHICH YOU AGREE OR DISAGREE WITH EACH STATEMENT BELOW IN DESCRIBING STRONGLY MODERATELY SLIGHTLY SLIGHTLY MODERATELY STRONGLY YOUR FOCUS IN LIFE. DISAGREE DISAGREE DISAGREE AGREE AGREE AGREE
Source: R. N. Kanungo, Work Alienation: An Integrative Approach (New York: Praeger, 1982).
in Appendix B at the end of this book to calculate your results. Remember that there are no right or wrong answers to these questions. Also, this self-assessment should be completed alone so that you can rate yourself honestly without concerns of social comparison. Class discussion will focus on the meaning of this scale and its relevance to self-concept and perceptions.
1. The most important things that happen in life involve work.
2. Work is something people should get involved in most of the time.
3. Work should be only a small part of one’s life.
4. Work should be considered central to life.
5. In my view, an individual’s personal life goals should be work-oriented.
6. Life is worth living only when people get absorbed in work.
mcs62589_ch03_062-091.indd Page 90 22/11/13 7:32 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
SELF-ASSESSMENTS Self-assessments are an important and engaging part of the active learning process. This edition features self-assessments in every chapter, including new scales such as proactive personality, romance of leadership, work centrality, sensing-intuitive type, and learning goal orientation. Most self- assessments are also available online in Connect.
xxiii
mcs62589_fm_i-xxviii_1.indd Page xxiii 12/5/13 5:51 PM f-496 mcs62589_fm_i-xxviii_1.indd Page xxiii 12/5/13 5:51 PM f-496 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Organizational Behavior, Seventh Edition, includes a variety of supplemental materials to help
instructors prepare and present the material in this textbook more effectively.
student and instructor support materials
Online Learning Center (www.mhhe.com/mcshane7e)
The Online Learning Center provides instructors with the following teaching tools.
INSTRUCTOR’S MANUAL This is one of the few textbooks for which the authors write the Instructor’s Manual, ensuring that the instructor materials represent the textbook’s content and support instructor needs. Each chapter includes the learning objectives, glossary of key terms, a chapter synopsis, com- plete lecture outline with thumbnail images of corresponding PowerPoint slides, and suggested answers to the end-of-chapter discussion questions. Also included are teaching notes for the chapter case(s), team exercises, and self-assessments. The Instructor’s Manual also provides complete teaching notes for the additional cases.
TEST BANK AND EZ TEST Updated for this edition, the Test Bank includes more than 2,000 multiple-choice, true/false, and essay questions. Each question identifies the relevant learning objective, Bloom’s taxonomy level, AASCB standard for assurance of learning, and difficulty level.
In addition, McGraw-Hill’s testing software, EZ Test, allows you to easily query for learning objectives that directly relate to the learning objectives for your course; the reporting features of EZ Test also enable you to aggregate student results, making the collection and presentation of assurance-of-learning data quick and easy. The program provides a means to create tests that are book-specific and even add your own questions. Multiple versions of a test can be created, and any test can be exported for use with course management systems such as WebCT and Blackboard or with any other course management system.
POWERPOINT PRESENTATION SLIDES The PowerPoint slides have been prepared by the authors, allowing seamless integration be- tween the slides and the Instructor’s Manual. Each chapter includes more than two dozen slides, featuring key points, photographs, and figures from the text, as well as teaching tips and notes for using the slides.
Student Supplements Students can access self-graded quizzes and chapter review materials.
xxiv
mcs62589_fm_i-xxviii_1.indd Page xxiv 12/5/13 5:51 PM f-496 mcs62589_fm_i-xxviii_1.indd Page xxiv 12/5/13 5:51 PM f-496 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
xxv
Video Resources
ORGANIZATIONAL BEHAVIOR VIDEO DVD VOL. 2 For instructors who want to incorporate more real-world examples into the classroom, this compilation of video clips features interesting and timely issues, companies, and people re- lated to organizational behavior. The clips and teaching notes are also located in the Instructor Center of the Online Learning Center and in the Connect Library Resources.
MANAGER’S HOT SEAT Now instructors can put students in the hot seat with access to an interactive program. Students watch real managers apply their years of experience when confronting unscripted issues. As the scenario unfolds, questions about how the manager is handling the situation pop up, forcing the student to make decisions along with the manager. At the end of the scenario, students watch a post-scenario interview with the manager, to see how their responses matched up with the man- ager’s decisions. The Manager’s Hot Seat videos are now available as assignments in Connect.
McGraw-Hill Connect Management LESS MANAGING. MORE TEACHING. GREATER LEARNING.
Connect® Management is McGraw-Hill’s web-based assignment and assessment platform that con- nects you and your students to the coursework. Interactive Applications provided for each chapter of the textbook allow instructors to assign application-focused interactive activities, engage stu- dents to “do” management, stimulate critical thinking, and reinforce key concepts. Students apply what they’ve learned and receive immediate feedback. Instructors can customize these activities and monitor student progress. Connect Management for Organizational Behavior includes:
Simple Assignment Management and Grading With Connect Management, creating assignments is easier than ever, so you can spend more time teaching and less time managing. The assignment management function enables you to:
• Create and deliver assignments easily with selectable end-of-chapter questions and Test Bank items.
• Streamline lesson planning, student progress reporting, and assignment grading to make classroom management more efficient than ever.
• Go paperless with the eBook and online submission and grading of student assignments.
New! LearnSmart and SmartBook™ McGraw-Hill LearnSmart™ is an adaptive learning program that identifies what an individual student knows and doesn’t know. LearnSmart’s adaptive learning path helps students learn faster, study more efficiently, and retain more knowledge. SmartBook offers a personalized reading experience by highlighting content the student needs to study.
mcs62589_fm_i-xxviii_1.indd Page xxv 12/5/13 5:51 PM f-496 mcs62589_fm_i-xxviii_1.indd Page xxv 12/5/13 5:51 PM f-496 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
xxvi
®
Interactive Applications Activities for each chapter in the form of drag-and-drop, case analysis, and video cases reinforce key concepts, stimulate critical thinking, and allow students to practice problem-solving in real- istic business situations. In addition, Manager’s Hot Seat videos show how real managers handle various situations and give students the opportunity to practice managerial decision making.
Students receive immediate feedback and can track their progress in their own report. Detailed results let instructors see at a glance how each student performs and easily track the progress of every student in their course.
Instructor Library The Connect Management Instructor Library is your repository for additional resources to improve student engagement in and out of class. You can select and use any asset that enhances your lecture. The Connect Management Instructor Library includes:
• Instructor Manual • PowerPoint files • Test Bank • Management Asset Gallery • eBook • Self-Assessments
McGraw-Hill Connect Plus Management Connect Plus Management provides all of the Connect Management features plus an integrated ebook, allowing for anytime, anywhere access to the textbook, and a powerful search function to pinpoint and connect key concepts in a snap.
For more information about Connect, go to www.mcgrawhillconnect.com, or contact
your local McGraw-Hill sales representative.
Tegrity Campus: Lectures 24/7
Tegrity Campus is a service that makes class time available 24/7 by automatically capturing every lecture in a searchable
format for students to review when they study and complete assignments. With a simple one- click start-and-stop process, you capture all computer screens and corresponding audio. Stu- dents can replay any part of any class with easy-to-use browser-based viewing on a PC or Mac.
Educators know that the more students can see, hear, and experience class resources, the better they learn. In fact, studies prove it. With Tegrity Campus, students quickly recall key mo- ments by using Tegrity Campus’s unique search feature. This search helps students efficiently find what they need, when they need it, across an entire semester of class recordings. Help turn all your students’ study time into learning moments immediately supported by your lecture.
Lecture Capture enables you to:
• Record and distribute your lecture with a click of a button. • Record and index PowerPoint presentations and anything shown on your computer so
it is easily searchable, frame by frame. • Offer access to lectures anytime and anywhere by computer, iPod, or mobile device. • Increase intent listening and class participation by easing students’ concerns about note
taking. Lecture Capture will make it more likely you will see students’ faces, not the tops of their heads.
To learn more about Tegrity, watch a 2-minute Flash demo at http://tegritycampus.mhhe.com.
mcs62589_fm_i-xxviii_1.indd Page xxvi 12/5/13 5:51 PM f-496 mcs62589_fm_i-xxviii_1.indd Page xxvi 12/5/13 5:51 PM f-496 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
xxvii
AACSB Statement
McGraw-Hill Education is a proud corporate member of AACSB International. Understand- ing the importance and value of AACSB accreditation, the authors of Organizational Behavior, Seventh Edition, recognize the curricula guidelines detailed in the AACSB standards for busi- ness accreditation by connecting selected questions in the text and/or the Test Bank to the six general knowledge and skill guidelines in the AACSB standards.
The statements contained in Organizational Behavior, Seventh Edition are provided only as a guide for the users of this textbook. The AACSB leaves content coverage and assessment within the purview of individual schools, the mission of the school, and the faculty. While Orga- nizational Behavior and the teaching package make no claim of any specific AACSB qualification or evaluation, we have within Organizational Behavior labeled selected questions according to the six general knowledge and skill areas.
Ebook Options
Ebooks are an innovative way for students to save money and to “go green.” McGraw-Hill’s ebooks are typically 40% off the bookstore price. Students have the choice between an online and a downloadable CourseSmart ebook.
Through CourseSmart, students have the flexibility to access an exact replica of their text- book from any computer that has Internet service, without plug-ins or special software, via the online version, or to create a library of books on their hard drive via the downloadable version. Access to the CourseSmart ebooks lasts for one year.
Features CourseSmart ebooks allow students to highlight, take notes, organize notes, and share the notes with other CourseSmart users. Students can also search for terms across all ebooks in their purchased CourseSmart library. CourseSmart ebooks can be printed (five pages at a time).
More Info and Purchase Please visit www.coursesmart.com for more information and to purchase access to our ebooks. CourseSmart allows students to try one chapter of the ebook, free of charge, before purchase.
Create
Craft your teaching resources to match the way you teach! With McGraw-Hill Create, www.mcgrawhillcreate.com, you can easily rearrange chapters, combine material from other content sources, and quickly upload content you have written, like your course syllabus or teaching notes. Find the content you need in Create by searching through thousands of leading McGraw-Hill textbooks. Arrange your book to fit your teaching style. Create even al- lows you to personalize your book’s appearance by selecting the cover and adding your name, school, and course information. Order a Create book and you’ll receive a complimentary print review copy in three to five business days or a complimentary electronic review copy (eComp) via e-mail in about one hour. Go to www.mcgrawhillcreate.com today and register. Expe- rience how McGraw-Hill Create empowers you to teach your students your way.
mcs62589_fm_i-xxviii_1.indd Page xxvii 12/5/13 5:51 PM f-496 mcs62589_fm_i-xxviii_1.indd Page xxvii 12/5/13 5:51 PM f-496 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
This page intentionally left blank
organizational behavior
mcs62589_fm_i-xxviii_1.indd Page 1 12/5/13 5:51 PM f-496 mcs62589_fm_i-xxviii_1.indd Page 1 12/5/13 5:51 PM f-496 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
1 Introduction to the Field of Organizational Behavior
le a
rn in
g o
b je
ct iv
es
After studying chapter 1, you should be able to:
1-1 Define organizational behavior and organizations, and discuss the importance of this field of inquiry.
1-2 Compare and contrast the four current perspectives of organizational effectiveness.
1-3 Debate the organizational opportunities and challenges of globalization, workforce diversity, and emerging employment relationships.
1-4 Discuss the anchors on which organizational behavior knowledge is based.
2
chapter
mcs62589_ch01_002-029.indd Page 2 08/11/13 4:35 PM f-500 mcs62589_ch01_002-029.indd Page 2 08/11/13 4:35 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
PART 1: INTRODUCTION
uicken Loans is America’s third-largest residential mortgage lender, yet it is almost the antithesis of a traditional financial institution. The Detroit-based company does business completely online and boasts a high-involvement, creative, customer-focused, and fun culture. “We encourage
everyone who works at the company to be curious, look for ways to improve our
processes, then take the next step and make the changes a reality,” says one manager.
The information technology group takes the creative process one step further through
“Bullet Time,” a half-day event each Monday during which information technology staff
work on a project outside their usual duties that benefits the company. “You need to
provide the freedom and motivation for employees to make a difference” explains Bill
Parker, the company’s Innovation Architect.
The company invests heavily in employee development, beginning with an
intensive two-day orientation program, during which Chair Dan Gilbert and CEO
Bill Emerson personally describe the company’s culture and 18 principles (called
“ISMs”) that guide employee behavior. Emerson even hands out his e-mail address
and personal cell number to keep the communication lines open. “I encourage
leaders to be accessible because it breeds an inclusive culture,” says Emerson.
Quicken Loans’ work environment also supports its work hard–play hard culture.
The company’s offices in downtown Detroit (as well as in six other cities) are a riot
of brightly colored walls and furniture, graffiti-painted concrete floors, and unusual
spaces for impromptu gatherings and work breaks. Surrounded by progress charts
and posters highlighting each of Quicken Loans’ “ISMs,” employees take time out to
engage in Ping-Pong tournaments, basketball games, Nerfball battles, and costume
contests. “We’ve done some pretty wild stuff, but people will respond well to that,”
suggests Quicken facilities director Melissa Price. “It creates an energy level that an
old, tired space doesn’t have.”
Quicken Loans is also recognized for its strong community support, such as
reviving Detroit’s central business district, donating time and resources to charities,
and assisting employees serving in the National Guard. The company isn’t perfect. Yet
it is recognized by multiple sources as one of the best financial institutions for
u le in bb
e
Q
3
Quicken Loans has become one of America’s most successful companies through high involvement, a focus on creativity, a strong culture, and other effective organizational behavior practices.
mcs62589_ch01_002-029.indd Page 3 08/11/13 4:36 PM f-500 mcs62589_ch01_002-029.indd Page 3 08/11/13 4:36 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
4 Part One Introduction
customer service and one of the best places to work in America. “There’s so
much room for growth,” says Quicken Loans employee Ricardo Williams. “No one
in the company limits you to where you’re at.”1
Welcome to the Field of Organizational Behavior! This opening story about Quicken Loans illustrates some of the important ways that orga- nizations succeed in today’s turbulent environment. In every sector of the economy, organi- zations need to employ skilled and motivated people who can be creative, work in teams, and maintain a healthy lifestyle. They need leaders with foresight and vision, who support innovative work practices and make decisions that consider the interests of multiple stake- holders. In other words, the best companies succeed through the concepts and practices that we discuss in this organizational behavior book.
Our purpose is to help you understand what goes on in organizations, including the thoughts and behavior of employees and teams. We examine the factors that make compa- nies effective, improve employee well-being, and drive successful collaboration among coworkers. We look at organizations from numerous and diverse perspectives, from the deepest foundations of employee thoughts and behavior (personality, self-concept, com- mitment) to the complex interplay among the organization’s structure and culture and its external environment. Along this journey, we emphasize why things happen and what you can do to predict and manage organizational events.
We begin this chapter by introducing you to the field of organizational behavior (OB) and why it is important to your career and to organizations. Next, this chapter describes the “ultimate dependent variable” in OB by presenting the four main perspectives of organiza- tional effectiveness. This is followed by an overview of three challenges facing organizations: globalization, increasing workforce diversity, and emerging employment relationships. We complete this opening chapter by describing four anchors that guide the development of organizational behavior knowledge.
The Field of Organizational Behavior Organizational behavior (OB) is the study of what people think, feel, and do in and around organizations. It looks at employee behavior, decisions, perceptions, and emotional responses. It examines how individuals and teams in organizations relate to each other and to their counterparts in other organizations. OB also encompasses the study of how organi- zations interact with their external environments, particularly in the context of employee behavior and decisions. OB researchers systematically study these topics at multiple levels of analysis, namely, the individual, team (including interpersonal), and organization.2
The definition of organizational behavior begs the question: What are organizations? Organizations are groups of people who work interdependently toward some purpose.3 No- tice that organizations are not buildings or government-registered entities. In fact, many orga- nizations exist without either physical walls or government documentation to confer their legal status. Organizations have existed for as long as people have worked together. Massive temples dating back to 3500 BC were constructed through the organized actions of multitudes of people. Craftspeople and merchants in ancient Rome formed guilds, complete with elected
managers. More than 1,000 years ago, Chinese factories were producing 125,000 tons of iron each year.4
Throughout history, these and other organizations have consisted of people who communicate, coordinate, and collaborate with each other to achieve common objectives. One key feature of organizations is that they are collective entities. They consist of human beings (typically, but not
organizational behavior (OB) The study of what people think, feel, and do in and around organizations.
organizations Groups of people who work interdependently toward some purpose.
LO 1-1
mcs62589_ch01_002-029.indd Page 4 08/11/13 4:36 PM f-500 mcs62589_ch01_002-029.indd Page 4 08/11/13 4:36 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Chapter One Introduction to the Field of Organizational Behavior 5
necessarily, employees), and these people interact with each other in an organized way. This organized relationship requires some minimal level of communication, coordination, and collaboration to achieve organizational objectives. As such, all organizational members have degrees of interdependence with each other; they accomplish goals by sharing materials, in- formation, or expertise with coworkers.
A second key feature of organizations is that their members have a collective sense of pur- pose. This collective purpose isn’t always well defined or agreed on. Although most compa- nies have vision and mission statements, these documents are sometimes out of date or don’t describe what employees and leaders try to achieve in reality. Still, imagine an organization without a collective sense of purpose. It would be a collection of people without direction or unifying force. So, whether it’s providing home loans at Quicken Loans or designing better aircraft at Boeing, people working in organizations have some sense of collective purpose. As Steve Jobs, the late cofounder of Apple Inc. and Pixar Animation Studios, once said: “A com- pany is one of humanity’s most amazing inventions. It’s totally abstract. Sure, you have to build something with bricks and mortar to put the people in, but basically a company is this abstract construct we’ve invented, and it’s incredibly powerful.”5
HISTORICAL FOUNDATIONS OF ORGANIZATIONAL BEHAVIOR Organizational behavior emerged as a distinct field around the early 1940s, but organizations have been studied by experts in other fields for many centuries. The Greek philosopher Plato wrote about the essence of leadership. Around the same time, the Chinese philosopher Confucius extolled the virtues of ethics and leadership. In 1776, Adam Smith discussed the benefits of job specialization and division of labor. One hundred years later, the German so- ciologist Max Weber wrote about rational organizations, the work ethic, and charismatic leadership. Soon after, industrial engineer Frederick Winslow Taylor proposed systematic ways to organize work processes and motivate employees through goal setting and rewards.6
Until the 1930s, most organizational research and practice tried to improve work efficiency by changing working conditions and job duties. Employees’ thoughts and feelings were ignored and considered irrelevant. Elton Mayo (left in photo), his research assistant and later professor Fritz Roethlisberger (right), and others at Harvard University adopted a completely different view. Their research at Western Electric Hawthorne Works near Chicago found that employee attitudes, formal team dynamics, informal groups, and supervisor leadership style strongly influenced employee performance and well-being. This focus, known as the “human relations” school, laid the foundation for the field of organizational behavior as we know it today.8
mcs62589_ch01_002-029.indd Page 5 08/11/13 4:36 PM f-500 mcs62589_ch01_002-029.indd Page 5 08/11/13 4:36 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
6 Part One Introduction
From the 1920s to the 1940s, Harvard professor Elton Mayo and his colleagues estab- lished the “human relations” school of management, which emphasized the study of employee attitudes and informal group dynamics in the workplace. Also during that time, political philosopher and social worker Mary Parker Follett advocated new ways of thinking about several OB topics, including constructive conflict, team dynamics, organizational democracy, power, and leadership. In the late 1930s, Chester Barnard wrote insightful views regarding organizational communication, coordination, leadership and authority, organizations as open systems, and team dynamics.7 This brief historical tour indicates that OB has been around for a long time; it just wasn’t organized into a unified discipline until around World War II.
WHY STUDY ORGANIZATIONAL BEHAVIOR? Organizational behavior instructors face a challenge: Students who have not yet begun their careers tend to value courses related to specific jobs, such as accounting and marketing.9 However, OB doesn’t have a specific career path—there is no “vice president of OB”—so students sometimes have difficulty recognizing the value that OB knowledge can offer to their future. Meanwhile, students with several years of work experience identify OB as one of the most important courses. Why? Because they have learned through experience that OB makes a difference to one’s career success. OB helps us make sense of and predict the world in which we live.10 We use OB theories to question our personal beliefs and assumptions and to adopt more accurate models of workplace behavior.
But probably the greatest value of OB knowledge is that it helps us get things done in the workplace.11 By definition, organizations are people who work together to accomplish things, so we need a toolkit of knowledge and skills to work successfully with others. Build- ing a high- performance team, motivating coworkers, handling workplace conflicts, influ- encing your boss, and changing employee behavior are just a few of the areas of knowledge and skills offered in organizational behavior. No matter what career path you choose, you’ll find that OB concepts play an important role in performing your job and working more effectively within organizations.
Is OB just common sense? Visit connect.mcgrawhill.com to assess how much your personal theories about what goes on in organizations are consistent with current organizational behavior evidence.
Organizational Behavior Is for Everyone A common misunderstanding is that or- ganizational behavior is for managers. Although OB knowledge is critical for effective manage- ment, this book takes the broader view that the ideas presented in this book are valuable for everyone who works in and around organizations. Whether you are a geologist, mortgage loan banker, customer service representative, or chief executive officer, you need to understand and apply the many organizational behavior topics that are discussed in this book. Most organiza- tions will probably always have managers, and this book recognizes the relevance of OB knowl- edge in these vital roles. But we also recognize that all employees are increasingly expected to manage themselves and work effectively with each other in the workplace. In the words of one forward-thinking OB writer more than four decades ago: Everyone is a manager.12
OB and the Bottom Line Up to this point, our answer to the question “Why study OB?” has focused on how organizational behavior knowledge benefits you as an individual. However, OB knowledge is just as important for the organization’s financial health. Quicken Loans illustrates this point: Its success has been driven by a strong workplace culture, individual rewards and development, teamwork, creative decision making, visionary leader- ship, and many other organizational behavior practices.
mcs62589_ch01_002-029.indd Page 6 08/11/13 8:07 PM f-500 mcs62589_ch01_002-029.indd Page 6 08/11/13 8:07 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Chapter One Introduction to the Field of Organizational Behavior 7
Numerous studies have reported that OB practices are powerful predictors of the organization’s survival and success.13 One investigation found that hospitals with higher levels of specific OB activities (e.g., training, staff involvement, rewards and recognition) have lower patient mortality rates. Another study found that companies receiving “best place to work” awards have significantly stronger financial and long-term stock market performance. Companies with higher levels of employee engagement also have significantly higher sales and profitability (see Chapter 5).
The bottom-line value of organizational behavior is also supported by human capital and investment portfolio studies. These investigations suggest that specific OB characteristics (employee attitudes, work–life balance, performance-based rewards, leadership, employee training and development) are important “positive screens” for selecting companies with the best long-term stock appreciation. For example, various studies report that a company’s performance is significantly influenced by the quality of its chief executive officer. There is plenty of anecdotal evidence of this relationship, including the leadership failures that caused problems at JCPenney and SNC Lavalin.14
Perspectives of Organizational Effectiveness Apple, Inc. and Google, Inc. are the two most admired companies in the world, according to Fortune magazine’s annual list.15 Yet neither of these companies was on anyone’s radar screen a dozen years ago. Apple was on life support in the late 1990s, barely clinging on to a few percentage points of market share in the computer industry. Google wasn’t even regis- tered as a company. It was little more than a computer project by two Stanford PhD stu- dents that was quickly outgrowing the dorm room where their equipment was housed. How did Apple and Google achieve their incredible successes? They consistently applied the four perspectives of organizational effectiveness that we discuss over the next few pages.
LO 1-2
Visit connect.mcgrawhill.com for activities and test questions to help you learn the four perspectives of organizational effectiveness.
Almost all organizational behavior theories have the implicit or explicit objective of mak- ing organizations more effective.16 In fact, organizational effectiveness is considered the “ultimate dependent variable” in organizational behavior.17 This means that organizational effectiveness is the outcome that most OB theories are ultimately trying to achieve. Many theories use different labels—organizational performance, success, goodness, health, com- petitiveness, excellence—but they are basically presenting models and recommendations to help organizations become more effective.
Many years ago, OB experts thought the best indicator of a company’s effectiveness was how well it achieved its stated objectives. According to this definition, Delta Airlines would be an effective organization if it met or exceeded its annual sales and profit targets. Today, we know this isn’t necessarily so. Any leadership team could set corporate goals that are easy to achieve but would put the organization out of business. These goals also could be left in the dust by competitors’ more aggressive objectives. Worse still, some goals might point the organization in the wrong direction. Consequently, goal attainment is not part of the orga- nizational effectiveness model in this book.
The best yardstick of organizational effectiveness is a composite of four perspectives: open systems, organizational learning, high-performance work practices, and stakeholders.18 Organizations are effective when they have a good fit with their external environment, are learning organizations, have efficient and adaptive internal subsystems, and satisfy the needs of key stakeholders. Let’s examine each of these perspectives in more detail.
organizational effectiveness A broad concept represented by several perspectives, including the organization’s fit with the external environment, internal subsystems configuration for high performance, emphasis on organizational learning, and an ability to satisfy the needs of key stakeholders.
mcs62589_ch01_002-029.indd Page 7 08/11/13 8:08 PM f-500 mcs62589_ch01_002-029.indd Page 7 08/11/13 8:08 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
8 Part One Introduction
OPEN SYSTEMS PERSPECTIVE The open systems perspective of organizational effectiveness is one of the earliest and most well-entrenched ways of thinking about organizations.19 Indeed, the other major organiza- tional effectiveness perspectives might be considered detailed extensions of the open systems model. This perspective views organizations as complex organisms that “live” within an ex- ternal environment, rather like the illustration in Exhibit 1.1. The word open describes this permeable relationship, whereas closed systems operate without dependence on or interaction with an external environment.
As open systems, organizations depend on the external environment for resources, including raw materials, job applicants, financial resources, information, and equipment. The external environment also consists of rules and expectations, such as laws and cultural norms, that place demands on how organizations should operate. Some environmental resources (e.g., raw mate- rials) transform into outputs that are exported to the external environment, whereas other re- sources (e.g., job applicants, equipment) become subsystems in the transformation process.
Inside the organization are numerous subsystems, such as departments, teams, informal groups, work processes, technological configurations, and other elements. Rather like the Rus- sian matryoshka dolls nested within each other, organizational subsystems are systems with their own subsystems.20 For example, the Nordstrom department store in Spokane, Washington, is a subsystem of the Nordstrom chain, but the Spokane store is also a system with its own subsystems of departments, teams, and work processes. An organization’s subsystems are orga- nized interdependently so they interact with each other to transform inputs into various out- puts. Some outputs (e.g., products, services, community support) may be valued by the external environment, whereas other outputs (e.g., employee layoffs, pollution) are by- products that may have adverse effects on the environment and the organization’s relationship with that environment. Throughout this process, organizations receive feedback from the external envi- ronment regarding the value of their outputs and the availability of future inputs.
Organization–Environment Fit According to the open systems perspective, orga- nizations are effective when they maintain a good “fit” with their external environment.22 Good fit exists when the organization’s inputs, processes, and outputs are aligned with the needs and expectations of the external environment. There are three ways that companies
Marketing/Sales subsystem
Engineering subsystem
Managerial subsystem
Subsystem
suubsyystemmmm
Subbssysystemm
• Raw materials
• Human resources
• Information
• Financial resources
• Equipment
• Products/services
• Stockholder dividends
• Community support
• Waste/pollution
External Environment
FeedbackFeedback
Purchasing
subsystem
Subsystem
Subsystem
Su bsy
ste m
Subs ystem
Technological subsystem
Production subsystem
Accounting subsystem
S ub
sy st
em
Cultu ral
subs ystem
Socializationsubsystem
S ubsystem
Transforming inputs to outputs
EXHIBIT 1.1 Open Systems Perspective of Organizations
open systems A perspective that holds that organizations depend on the external environment for resources, affect that environment through their output, and consist of internal subsystems that transform inputs to outputs.
mcs62589_ch01_002-029.indd Page 8 08/11/13 4:36 PM f-500 mcs62589_ch01_002-029.indd Page 8 08/11/13 4:36 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Chapter One Introduction to the Field of Organizational Behavior 9
maintain a good environmental fit. The most common strategy to fit with the external envi- ronment is to change the company’s products and services, as well as how those outputs are produced. Zara, the world’s largest fashion retailer, relies on continuous adaptation to main- tain a good fit with its highly volatile external environment. As Global Connections 1.1 de- scribes, the Spanish company receives continuous feedback from each of its 6,000 stores, and then uses that feedback along with ongoing creativity to rapidly design, manufacture, and deliver new styles. In contrast, fashion retailers with a poor environmental fit are overstocked with products that few people want to buy and respond slowly to changing preferences.
A second way that organizations maintain a good fit is actively managing their external environment. Many firms manage their environment through marketing, which attempts to increase demand for their products or services. Others gain exclusive rights to particular re- sources (e.g., to sell a known brand) or restrict competitor access to valued resources. Still others lobby for legislation that strengthens their position in the marketplace or try to delay legislation that would disrupt their business activities.
Zara, the Spanish fashion retail giant, relies on an open systems perspective to achieve success in one of the world’s most volatile industries. emileluider.com
Zara Relies on Open Systems Thinking for Fast Fashion
Zara, the world’s largest clothing retailer, thrives in one of the world’s most volatile industries. What is its secret to success? The Spanish flagship brand of Inditex (which also owns Pull & Bear, Stradivarius, and other brands) has a business model that applies open systems thinking. In the fashion industry, customer preferences change quickly and have limited predictability. Zara maintains a close fit with that turbulent environment by experimenting with nu- merous new styles, receiving almost immediate and continu- ous feedback about which ones are most popular, learning what minor adjustments would make the styles more appeal- ing, and quickly producing and delivering new or revised styles to match current demand. Zara practically invented the notion of “fast fashion,” whereby the company responds quickly to customer preferences and fashion trends. Most other retailers instead produce a limited variety of styles, offer only two or three batches of new designs each year, and require up to six months for those designs to show up in stores. The nucleus of this open systems process is an aircraft hangar–sized room at Zara’s headquarters in A Coruña, Spain (shown in the photo). In the center of the room is a long line of facing desks where regional managers from two dozen countries are in daily contact with each of the company’s 6,000 stores in 86 countries. Equally important, sales staff are trained to ask customers about why they bought a garment or how a garment could be designed more to their liking. These customer comments are then quickly reported back to head- quarters. On both sides of the room are designers and other staff who use this continuous store feedback to revise existing styles and spark ideas for new designs. Suppose several regional managers receive reports that the new line of women’s white jackets is selling slowly; how- ever, customers have told sales staff they would buy that style of jacket in a cream-color with silkier fabric. Designers receive this information and quickly get to work designing a
cream-colored jacket with the preferred material. Some re- gional differences exist, of course, but Zara reports that most of its products are in demand globally. Zara also produces limited stocks of a large variety of designs. Thus, the company can sample a wider array of market preferences while mini- mizing the problem of having too much inventory. In fact, knowing that Zara’s products are constantly changing attracts customers back to the stores more often. Rapid and rich feedback from stores is vital, but Zara also thrives because of its quick response to that feedback. Most fashion retailers rely on independent manufacturers in distant countries that require several months’ lead time to produce a garment. Zara uses such low-cost manufacturers to some ex- tent, but half of its garments are made “in proximity” by nearby Spanish companies or companies in Portugal, Morocco, and Turkey. Nearby manufacturing costs more, but it often takes less than three weeks for a new design from these nearby sites to arrive in stores, which receive new stock twice each week.21
global connections 1.1
mcs62589_ch01_002-029.indd Page 9 22/11/13 2:43 PM f-500 mcs62589_ch01_002-029.indd Page 9 22/11/13 2:43 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
10 Part One Introduction
The third way organizations maintain a healthy fit is to change their business or market location. In other words, if the external environment is too challenging, organizations move to a new environment that can sustain them. Nucor, the largest steelmaker by market value in the United States, began as a car and truck manufacturer (under the name REO), then became a steel joist manufacturer, before settling into its current business. IBM exited the computer products industry when senior executives (correctly) predicted that selling computers would be less prosperous than the rapidly growing technology services business.
Internal Subsystems Effectiveness The open systems perspective considers more than an organization’s fit with the external environment. It also defines effectiveness by how well the company operates internally—that is, how well it transforms inputs into out- puts. The most common indicator of this internal transformation process is organizational efficiency (also called productivity), which is the ratio of inputs to outcomes.23 Quicken Loans, described at the beginning of this chapter, gained considerable advantage over com- petitors by dramatically increasing its efficiency in processing home loans through online technologies (initially through web pages and more recently through smartphone apps).
Successful organizations usually require more than efficient transformation processes, however. They also need more adaptive and innovative transformation processes.24 Adaptiv- ity makes the organization’s transformation process more responsive to changing conditions and customer needs. Innovation enables the company to design work processes that are su- perior to what competitors can offer. Zara thrives on its adaptability because its internal subsystems continuously revise styles in line with customer preferences. The company’s in- ternal subsystems and tight relations with external contractors also are more efficient than competitors’, because new fashion ideas become products on store racks within a few weeks (whereas most fashion companies require several months).
Finally, internal subsystem effectiveness calls for well-tuned coordination among subsys- tems.25 As companies grow, their internal subsystems (divisions, specializations, and the like) become more complex. This complexity and clustering increases the risk that informa- tion will get lost, ideas and resources are hoarded, messages are misinterpreted, and rewards get distributed unfairly. Subsystems are also interconnected, so small work practice changes in one subsystem may ripple through the organization and undermine the effectiveness of other subsystems. Consequently, organizations need to maintain an efficient and adaptable transformation process through work procedures, informal communication, and other coor- dinating mechanisms (see Chapter 13).
ORGANIZATIONAL LEARNING PERSPECTIVE The open-systems perspective has traditionally focused on physical resources that enter the organization and are processed into physical goods (outputs). This focus was representative of the industrial economy but not the “new economy,” where the most valued input is knowledge.26 According to the organizational learning perspective (also called knowledge management), organizational effectiveness depends on the organization’s capacity to acquire, share, use, and store valuable knowledge.
Intellectual Capital: The Stock of Organizational Knowledge The orga- nizational learning perspective views knowledge as a resource, and this stock of knowledge exists in three forms, collectively known as intellectual capital.27 The most commonly mentioned form of intellectual capital is human capital—the knowledge, skills, and abilities
organizational efficiency The amount of outputs relative to inputs in the organization’s transformation process.
organizational learning A perspective that holds that organizational effectiveness depends on the organization’s capacity to acquire, share, use, and store valuable knowledge.
intellectual capital A company’s stock of knowledge, including human capital, structural capital, and relationship capital.
human capital The stock of knowledge, skills, and abilities among employees that provide economic value to the organization.
mcs62589_ch01_002-029.indd Page 10 08/11/13 4:36 PM f-500 mcs62589_ch01_002-029.indd Page 10 08/11/13 4:36 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Chapter One Introduction to the Field of Organizational Behavior 11
that employees carry around in their heads. Human capital has been described as valuable, rare, difficult to imitate, and nonsubstitutable.28 It is valuable because employees help the organization discover opportunities and minimize threats in the external environment. Hu- man capital is rare and difficult to imitate, meaning that talented people are difficult to find and cannot be cloned like sheep. Finally, human capital is nonsubstitutable, because it can- not be easily replaced by technology.
Visit connect.mcgrawhill.com, which has activities and test questions to help you learn about the organizational learning topic.
Because of these characteristics, human capital is a competitive advantage as well as a huge risk for most organizations. When key people leave, they take with them some of the most valuable knowledge that makes the company effective.29 Fortunately, some intellectual capital remains, even if every employee left the organization. Structural capital (also called organizational capital ) includes the knowledge captured and retained in an organization’s systems and structures, such as the documentation of work procedures and the physical layout of the production line.30 Structural capital also includes the organization’s finished products, because knowledge can be extracted by taking them apart to discover how they work and are constructed (i.e., reverse engineering).
The third form of intellectual capital is relationship capital, which is the value derived from an organization’s relationships with customers, suppliers, and others that provide added mutual value for the organization. It includes the organization’s goodwill, brand image, and combina- tion of relationships that organizational members have with people outside the organization.31
Organizational Learning Processes Organizations nurture their intellectual capital through four organizational learning processes: knowledge acquisition, sharing, use, and storage (see Exhibit 1.2).32
Knowledge Acquisition Knowledge acquisition includes extracting information and ideas from the external environment, as well as through insight. One of the fastest and most powerful ways to acquire knowledge is by hiring individuals or buying entire com- panies (called grafting). Knowledge is also acquired by scanning the external environment and interpreting messages from external sources. As was described a few pages ago, Zara heavily relies on environmental scanning through store feedback (as well as watching competitors) to make clothes that the customer wants. Quicken Loans also pays close at- tention to customer feedback so it can develop better products and improve the customer service experience. “Client feedback provides us great insight into areas where we can improve,” says a Quicken Loans executive.33 A third knowledge acquisition strategy is experimentation. Companies receive knowledge through insight as a result of research and other creative processes.
Knowledge Sharing Knowledge sharing involves distributing knowledge to others within the organization. Although typically equated with computer intranets and digital
repositories, knowledge sharing mainly occurs through structured and informal communication, as well as various forms of learning (e.g., observation, experience, training, practice). Organizational structure, company practices, and cultural values influence how well employees share knowledge with coworkers.34 For example, nickel, alumi- num, petroleum, and iron ore division employees at BHP
structural capital Knowledge embedded in an organization’s systems and structures.
relationship capital The value derived from an organization’s relationships with customers, suppliers, and other.
mcs62589_ch01_002-029.indd Page 11 08/11/13 8:08 PM f-500 mcs62589_ch01_002-029.indd Page 11 08/11/13 8:08 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
12 Part One Introduction
Billiton, the world’s largest mining company, were previously spread across Australia and overseas. To break down the silos of knowledge, BHP moved thousands of these people into one building in downtown Perth, Australia. Employees who work in this skyscraper are even discouraged from eating lunch at their desks, so they will mingle more with coworkers in the cafeteria.
Knowledge Use The competitive advantage of knowledge ultimately comes from using it in ways that add value to the organization and its stakeholders. To do this, employees must be aware of the knowledge, be able to locate it, and have enough freedom to apply it. This requires a culture that encourages experimentation and open communication and that recognizes mistakes are part of that process.
Knowledge Storage and Organizational Memory Knowledge storage is the process of holding knowledge for later retrieval. In other words, it involves preserving the organiza- tion’s intellectual capital (its stock of knowledge). This store of knowledge is often called organizational memory.35 Organizational memory includes knowledge that employees pos- sess, as well as knowledge embedded in the organization’s systems and structures. It includes documents, objects, and anything else that provides meaningful information about how the organization should operate.
How do organizations store knowledge? One way is by motivating employees to stay employed with the company. Quicken Loans and other progressive businesses achieve this goal by adapting their employment practices to be more compatible with emerging work- force expectations. A second organizational memory strategy is to systematically transfer knowledge to other employees. This occurs when newcomers apprentice with skilled em- ployees, thereby acquiring knowledge that is not documented. A third strategy is to convert knowledge into structural capital. This includes bringing out hidden knowledge, organizing it, and putting it in a form that can be available to others. Reliance Industries, India’s largest business enterprise, applies this strategy by encouraging employees to document their suc- cesses and failures through a special intranet knowledge portal. One of these reports alone provided information that later prevented a costly plant shutdown.36
One last point about the organizational learning perspective: Effective organizations not only learn; they also unlearn routines and patterns of behavior that are no longer appropri- ate.38 Unlearning removes knowledge that no longer adds value and, in fact, may undermine the organization’s effectiveness. Some forms of unlearning involve replacing dysfunctional policies, procedures, and routines. Other forms of unlearning erase attitudes, beliefs, and
Knowledge Sharing • Communication • Training • Information systems • Observation
Knowledge Acquisition • Individual learning • Environment scanning • Grafting • Experimentation
Knowledge Use • Knowledge awareness • Sense making • Autonomy • Empowerment
Knowledge Storage • Human memory • Documentation • Practices/habits • Databases
EXHIBIT 1.2
Four Organizational Learning Processes
mcs62589_ch01_002-029.indd Page 12 08/11/13 4:36 PM f-500 mcs62589_ch01_002-029.indd Page 12 08/11/13 4:36 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Chapter One Introduction to the Field of Organizational Behavior 13
assumptions. Research in Motion held strong beliefs and assumptions about phones with physical keypads, with the result that its main product, BlackBerry, was slow to respond to touchscreen technology. Organizational unlearning is particularly important for organiza- tional change, which we discuss in Chapter 15.
HIGH-PERFORMANCE WORK PRACTICES (HPWP) PERSPECTIVE The open-systems perspective states that successful companies are good at transforming in- puts into outputs. However, it does not identify the subsystem characteristics that distin- guish effective organizations from others. Consequently, an entire field of research has blossomed around the objective of determining specific “bundles” of organizational prac- tices that offer competitive advantage. This research has had various labels over the years, but it is now most commonly known as high-performance work practices (HPWP).39
Similar to organizational learning, the HPWP perspective is founded on the belief that human capital—the knowledge, skills, and abilities that employees possess—is an important source of competitive advantage for organizations.40 The distinctive feature of the HPWP perspective is that it tries to identify a specific bundle of systems and structures that generate the most value from this human capital. Researchers have investigated numerous potential high-performance work practices, but we focus on the four discussed in most studies: em- ployee involvement, job autonomy, competency development, and rewards for performance and competency development.41 Notice that Quicken Loans, described at the beginning of this chapter, applies all of these practices to improve customer service. Each of these four work practices individually improves organizational performance, but studies suggest that they have a stronger effect when bundled together.42
The first two factors—involving employees in decision making and giving them more autonomy over their work activities—tend to strengthen employee motivation and improve decision making, organizational responsiveness, and commitment to change. In high- performance workplaces, employee involvement and job autonomy often take the form of self-directed teams (see Chapter 8). The third factor, employee competence development, refers to recruiting, selecting, and training people so the company employs people with rel- evant skills, knowledge, values, and other personal characteristics. The fourth high- performance work practice involves linking performance and skill development to various forms of financial and nonfinancial rewards valued by employees.
high-performance work practices (HPWP) A perspective that holds that effective organizations incorporate several workplace practices that leverage the potential of human capital.
The software industry depends heavily on the knowledge that employees bring to work. This fact is always on the mind of Jim Goodnight, CEO of the statistical software developer SAS Institute, Inc. “Ninety-five percent of my assets drive out the gate every evening,” says Goodnight (center in photo). “As such, it’s my job to maintain a work environment that keeps those people coming back every morning. The creativity they bring to SAS is a competitive advantage for us.”37
mcs62589_ch01_002-029.indd Page 13 08/11/13 4:36 PM f-500 mcs62589_ch01_002-029.indd Page 13 08/11/13 4:36 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
14
Why are HPWP practices associated with organizational effectiveness? OB experts have debated and found evidence for three explanations.44 The first is that HPWPs build human capital. These practices develop employee skills and knowledge, which improve work perfor- mance. A second explanation is that superior human capital may improve the organization’s adaptability to rapidly changing environments. Employees respond better when they have a wide skill set to handle diverse tasks, as well as confidence to handle unfamiliar situations. A third explanation is that HPWP practices strengthen employee motivation and attitudes toward the employer. They represent the company’s investment in and recognition of its workforce, which motivates employees to reciprocate through greater effort in their jobs and assistance to coworkers.
The HPWP perspective is still developing, but it already reveals important information about specific organizational practices that improve the input-output transformation process. Still, this perspective has been criticized for focusing on stockholder and customer needs at the expense of employee well-being.45 This concern illustrates that the HPWP perspective offers an incomplete picture of organizational effectiveness. The remaining gaps are mostly filled by the stakeholder perspective of organizational effectiveness.
STAKEHOLDER PERSPECTIVE The three organizational effectiveness perspectives described so far mainly pay attention to processes and resources, yet they only minimally acknowledge the importance of relations with stakeholders. Stakeholders include anyone with a stake in the company—employees, stockholders, suppliers, labor unions, government, communities, consumer and environ- mental interest groups, and so on (see Exhibit 1.3).46 The stakeholder perspective personal- izes the open-systems perspective; it identifies specific people and social entities in the external environment as well as within the organization (the internal environment). It is also consistent with the reality that stakeholder relations are dynamic; they can be negotiated and managed, not just taken as a fixed condition.47 Organizations are more effective when they consider the needs and expectations of any individual group, or other entity that af- fects, or is affected by, the organization’s objectives and actions. In other words, the stake- holder perspective requires organizational leaders and employees to understand, manage, and satisfy the interests of their stakeholders.48
Understanding, managing, and satisfying the interests of stakeholders is more challeng- ing than it sounds, because stakeholders have conflicting interests, and organizations don’t have the resources to satisfy every stakeholder to the fullest. Therefore, organizational leaders need to decide how much priority to give to each group.49 There is some evidence that cor- porate leaders rely on their personal values to prioritize stakeholders. This makes sense, be- cause leader values are typically (but not always) compatible with the organization’s long-term survival. A more commonly cited factor is to favor stakeholders with the most power. This makes sense when we consider that the most powerful stakeholders present the
stakeholders Individuals, groups, and other entities that affect, or are affected by, the organization’s objectives and actions.
American Express has taken a page from the high- performance work practices playbook. The financial services company encourages employees to go “off script,” meaning that they have the autonomy to customize their conversations rather than rely on memorized statements. Employees also have the discretion to solve problems on the spot, such as setting up a conference call to settle a dispute with a vendor. “We are getting more and more power to make the decisions at our level,” says Teresa Tate, a customer service employee in Phoenix.43
mcs62589_ch01_002-029.indd Page 14 08/11/13 4:36 PM f-500 mcs62589_ch01_002-029.indd Page 14 08/11/13 4:36 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Chapter One Introduction to the Field of Organizational Behavior 15
greatest threat to and opportunities for the company’s survival. Yet stakeholder power should not be the only factor to consider. Ignoring less powerful stakeholders might motivate those weaker groups to form coalitions or seek government support, which would give them more power. Ignoring smaller stakeholders might also irritate the more powerful stakeholders if ignoring weaker interests violates the norms and standards of society.
Values, Ethics, and Corporate Social Responsibility This brings us to one of the key strengths of the stakeholder perspective, namely, that it incorporates values, eth- ics, and corporate social responsibility into the organizational effectiveness equation.50 The stakeholder perspective states that to manage the interests of diverse stakeholders, leaders ultimately need to rely on their personal and organizational values for guidance. Values are relatively stable, evaluative beliefs that guide our preferences for outcomes or courses of ac- tion in a variety of situations.51 Values help us know what is right or wrong, or good or bad, in the world. Chapter 2 explains how values anchor our thoughts and, to some extent, mo- tivate our actions. Although values exist within individuals, groups of people often hold similar values, so we tend to ascribe these shared values to the team, department, organiza- tion, profession, or entire society. For example, Chapter 14 discusses the importance and dynamics of organizational culture, which includes shared values across the company or within subsystems.
Many companies have adopted a values-driven organization model, whereby employee decisions and behavior are guided by the company’s espoused values rather than by expen- sive and often demoralizing command-and-control management (i.e., top-down decisions with close supervision of employees).52 For instance, TrustPower, a New Zealand power company that relies entirely on renewable energy sources (hydro-electric and wind turbines), embraces six core values that emphasize the importance of its employees. “It comes from having a business that is values-based,” explains TrustPower CEO Vince Hawksworth. “So we have what we call our PRIIDE values—passion, respect, integrity, innovation, delivery and empowerment. These are fundamental to what we say and what we do.”53
values Relatively stable, evaluative beliefs that guide a person’s preferences for outcomes or courses of action in a variety of situations.
Organization
Customers
Employees Stockholders
Governments Labor Unions
Special Interest Groups
Joint Venture Partners
Communities and Charities
Suppliers
EXHIBIT 1.3
Organizational Stakeholders
Note: This exhibit does not show the complete set of possible stakeholders
mcs62589_ch01_002-029.indd Page 15 08/11/13 4:36 PM f-500 mcs62589_ch01_002-029.indd Page 15 08/11/13 4:36 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
16 Part One Introduction
The stakeholder perspective’s focus on values also brings ethics and corporate social re- sponsibility into the organizational effectiveness equation. In fact, the stakeholder perspec- tive emerged out of earlier writing on ethics and corporate social responsibility. Ethics refers to the study of moral principles or values that determine whether actions are right or wrong and outcomes are good or bad. We rely on our ethical values to determine “the right thing to do.” Ethical behavior is driven by the moral principles we use to make decisions. These moral principles represent fundamental values. According to one global survey, almost 80 percent of MBA students believe a well-run company operates according to its values and code of ethics.54 Chapter 2 provides more detail about ethical principles and related influ- ences on moral reasoning.
Corporate social responsibility (CSR) consists of organizational activities intended to benefit society and the environment, beyond the firm’s immediate financial interests or legal obligations.55 It is the view that companies have a contract with society, in which they must serve stakeholders beyond stockholders and customers. In some situations, the interests of the firm’s stockholders should be secondary to those of other stakeholders.56 As part of CSR, many companies have adopted a triple bottom-line philosophy: They try to support or “earn positive returns” in the economic, social, and environmental spheres of sustainability. Firms that adopt the triple bottom-line aim to survive and be profitable in the marketplace (economic), but they also intend to maintain or improve conditions for society (social) as well as the physical environment.57 Companies are particularly eager to become “greener” by minimizing any negative effect they have on the physical environment. This activity ranges from reducing and recycling waste in the production process to using goats to mow the lawn (one of the many environmental initiatives at Google).
Not everyone agrees that organizations need to cater to a wide variety of stakehold- ers. Many years ago, economist Milton Friedman pronounced that “there is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits.”59 Friedman is highly respected for developing economic theory, but few writers take this extreme view today. Some argue that companies need to give stockholders first priority, but the relationship among CSR, stockholders, and company success is far more complex. The emerging evidence, however, is that compa- nies with a positive CSR reputation tend to have better financial performance, more loyal employees (stronger organizational identification), and better relations with cus- tomers, job applicants, and other stakeholders.60 “Our company’s position on corporate social responsibility and the environment is a significant part of what job candidates find attractive about HBC,” acknowledges a senior executive at Hudson’s Bay Co., the Canadian department store chain and oldest commercial business in North America.61 In short, leaders may put their organization at risk if they ignore their broader corpo- rate social responsibility.
CONNECTING THE DOTS: ORGANIZATIONAL EFFECTIVENESS AND ORGANIZATIONAL BEHAVIOR These four perspectives on organizational effectiveness—open systems, organizational learning, high-performance work practices, and stakeholders—provide a roadmap to the
survival and success of organizations. They also provide a central source of links to the topics discussed throughout this book. The adaptive emphasis of the open systems perspective connects directly to leadership (Chapter 12) and organizational change (Chapter 15). The transforma- tion process aspect of open systems relates to job design (Chapter 6), organizational structure (Chapter 13), and relations between subunits in terms of conflict (Chap- ter 11) and power and influence (Chapter 10).
ethics The study of moral principles or values that determine whether actions are right or wrong and outcomes are good or bad.
corporate social responsibility (CSR) Organizational activities intended to benefit society and the environment beyond the firm’s immediate financial interests or legal obligations.
mcs62589_ch01_002-029.indd Page 16 08/11/13 4:36 PM f-500 mcs62589_ch01_002-029.indd Page 16 08/11/13 4:36 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Chapter One Introduction to the Field of Organizational Behavior 17
MTN Group is the largest mobile telecommunications company in Africa and a leader in corporate social responsibility (CSR). Through its award-winning “21 Days of Y’ello Care” program, most of the company’s 34,000 employees volunteer for specific CSR events held over three weeks each year. This photo shows a recent CSR initiative: painting schools and hospitals throughout the 21 African and Middle Eastern countries where MTN does business. Y’ello Care themes in other years included fighting against malaria, planting trees, reducing traffic accidents, and supporting orphanages.58
The organizational learning perspective highlights the importance of communication (Chapter 9) as well as creativity, employee involvement, and other decision-making topics (Chapter 7). The high-performance work practices perspective of effectiveness throws a spotlight on team dynamics (Chapter 8), employee motivation (Chapter 5), rewards (Chap- ter 6), and most individual-level topics (Chapters 2–4). The stakeholder approach has direct relevance for values and ethics (Chapter 2), organizational culture (Chapter 14), and deci- sion making (Chapter 7).
Contemporary Challenges for Organizations A message threaded throughout the previous section on organizational effectiveness is that organizations are deeply affected by the external environment. Consequently, they need to maintain a good organization-environment fit by anticipating and adjusting to changes in society. The external environment is continuously changing, but some changes over the past decade and in the decade to come are more profound than others. These changes require corporate leaders and all other employees to make personal and organizational adjustments. In this section, we highlight three of the major challenges facing organizations: globalization, increasing workforce diversity, and emerging employ- ment relationships.
LO 1-3
Visit connect.mcgrawhill.com for activities and test questions to help you learn about the topics of contemporary organizational challenges and anchors of OB knowledge.
GLOBALIZATION Maja Baiocco was delighted when her employer, PricewaterhouseCoopers LLP, sent her on a two-year international assignment to Zurich. Baiocco, an asset management auditor in the
mcs62589_ch01_002-029.indd Page 17 08/11/13 8:08 PM f-500 mcs62589_ch01_002-029.indd Page 17 08/11/13 8:08 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
18 Part One Introduction
accounting firm’s office in Toronto, Canada, welcomed the opportunity to gain global expe- rience and boost her career. “This company (PwC) is global and opportunities are global, and I know that international experiences are important to expand my experience and open new opportunities for advancement,” she says.62 Baiocco is developing her career in a world of increasing globalization. Globalization refers to economic, social, and cultural connectiv- ity with people in other parts of the world. Organizations globalize when they actively par- ticipate in other countries and cultures. Although businesses have traded goods across borders for centuries, the degree of globalization today is unprecedented, because informa- tion technology and transportation systems allow a much more intense level of connectivity and interdependence around the planet.63
Globalization offers numerous benefits to organizations in terms of larger markets, lower costs, and greater access to knowledge and innovation. At the same time, there is consider- able debate about whether globalization benefits developing nations and whether it is pri- marily responsible for increasing work intensification, as well as reducing job security and work–life balance in developed countries.64
Globalization is now well entrenched, so the most important issue for organizational behavior is how corporate leaders and employees alike can lead and work effectively in this emerging reality.65 Throughout this book, we refer to the effects of globalization on team- work, diversity, cultural values, organizational structure, leadership, and other themes. Each topic highlights that globalization has introduced more complexity to the workplace, but also more opportunities and potential benefits for individuals and organizations. Glo- balization requires additional knowledge and skills that we will also discuss in this book, such as emotional intelligence, a global mindset, nonverbal communication, and conflict handling.
INCREASING WORKFORCE DIVERSITY Walk into the offices of Verizon Communications, and you can quickly see that the telecom- munications giant values workforce diversity. Women and people of color constitute nearly 60 percent of the company’s 195,000-person workforce and nearly half of its board of direc- tors. African Americans represent 20 percent of Verizon’s workforce (compared with 11 per- cent of the U.S. labor force). More than one-quarter of senior management (vice-president and above) positions are held by women. The company also actively supports diversity among its many suppliers. Verizon’s inclusive culture has won awards from numerous organizations and publications representing Hispanic, African American, and gay/lesbian people, as well as people with disabilities. “A diverse workplace is one of Verizon’s biggest strengths as a global innovation leader,” says Verizon CEO Lowell McAdam.66
Verizon Communications is a model employer and a reflection of the increasing diversity of people living in the United States and in many other countries. The description of Veri- zon’s diversity refers to surface-level diversity—the observable demographic and other overt differences in people, such as their race, ethnicity, gender, age, and physical capabilities. Surface-level diversity has changed considerably in the United States over the past few decades. People with non-Caucasian or Hispanic origin represent one-third of the American popula- tion, and this level is projected to increase substantially over the next few decades. Within
the next 50 years, one in four Americans will be Hispanic, 14 percent will be African American, and eight percent will be of Asian descent. By 2060, people with a European non-Hispanic ethnicity will be a minority.68 Many other countries are also experiencing increasing levels of racial and ethnic diversification.
Diversity also includes differences in the psychological characteristics of employees, including personalities, beliefs, values, and attitudes.69 We can’t directly see this
globalization Economic, social, and cultural connectivity with people in other parts of the world.
surface-level diversity The observable demographic or physiological differences in people, such as their race, ethnicity, gender, age, and physical disabilities.
mcs62589_ch01_002-029.indd Page 18 08/11/13 4:36 PM f-500 mcs62589_ch01_002-029.indd Page 18 08/11/13 4:36 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Chapter One Introduction to the Field of Organizational Behavior 19
deep-level diversity, but it is evident in a person’s decisions, statements, and actions. A pop- ular example is the apparent deep-level diversity across generations.70 Exhibit 1.4 illustrates the distribution of the American workforce by major generational cohort: 37 percent Baby Boomers (born from 1946 and 1964), 28 percent Generation X (born from 1965 to 1980), and 26 percent Millennials (also called Generation Y, born after 1980).
Do these differences really exist? The answer is a qualified “yes.” Some generational dif- ferences are smaller than depicted in the popular press, and some of these differences are due to age, not cohort (i.e., the Boomers had many of the same attitudes as Millennials when they were that age).72 One recent investigation of 23,000 undergraduate college students reported that Millennials expect rapid career advancement regarding promotions and pay increases.73 These observations are consistent with other studies, which have found that Millennials are more self-confident, are more narcissistic (self- centered), and have less work centrality (i.e., work is less of a central life interest) than Boomers. Generation X employees typically average somewhere between these two cohorts.74
One large-scale cohort study surveyed the three generational groups when each was in se- nior high school. The results suggest that Millennials have the highest preference for leisure, followed by Gen-Xers and Baby Boomers.75 Millennials and Gen-Xers also value extrinsic rewards significantly more than do Boomers, and Millennials value social interaction signifi- cantly less than do Boomers or Gen-Xers. Of course, these results don’t apply to everyone in each cohort, but they do suggest that deep-level diversity exists across generations.
Consequences of Diversity Diversity presents both opportunities and challenges in organizations.76 Diversity is an advantage because it provides diverse knowledge. Further- more, teams with some forms of diversity (particularly occupational diversity) make better decisions on complex problems than do teams whose members have similar backgrounds. There is also some evidence that diversity award–winning companies have higher financial returns, at least in the short run.77 This is consistent with anecdotal evidence from many corporate leaders, who assert that having a diverse workforce improves customer service and creativity. “As a company serving customers around the globe, we greatly value the diverse opinions and experiences that an inclusive and diverse workforce brings to the table,” says a Verizon executive. The American telecommunications company has won several awards for its inclusive practices.78
Baby Boomers
37%
3%
6%
Generation X 28%
Millennials (Gen Y)
26%
Silents
Generation Z
EXHIBIT 1.4
America’s Multigenerational Workforce71
Percentage of United States workforce by age group, based on data from the U.S. Bureau of Labor Statistics. “Silents” represent the generation of employees born before 1946. Generation Z em- ployees were born after 1990, though some sources consider this group part of Millennials.
deep-level diversity Differences in the psychological characteristics of employees, including personalities, beliefs, values, and attitudes.
mcs62589_ch01_002-029.indd Page 19 08/11/13 4:36 PM f-500 mcs62589_ch01_002-029.indd Page 19 08/11/13 4:36 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
20 Part One Introduction
Is workforce diversity a sound business proposition? Yes, though research indicates that the reasons are not clear-cut, because most forms of diversity create challenges as well as benefits.79 Teams with diverse employees usually take longer to perform effectively. Diversity brings numerous communication problems, as well as “faultlines” in informal group dynam- ics. Diversity is also a source of conflict, which can reduce information sharing and, in ex- treme cases, increase morale problems and turnover.
Aside from the ongoing debate about the productivity and marketing benefits of work- force diversity, companies need to make diversity a priority, because surface-level diversity is a moral and legal imperative. Ethically, companies that offer an inclusive workplace are making fair and just decisions regarding employment, promotions, rewards, and so on. Fair- ness is a well-established influence on employee loyalty and satisfaction. In summary, work- force diversity is the new reality, and organizations need to adjust to this reality, both to survive and to experience its potential benefits for organizational success.
EMERGING EMPLOYMENT RELATIONSHIPS Combine globalization with emerging workforce diversity, then add in recent developments in information technology. The resulting concoction has created incredible changes in em- ployment relationships. A few decades ago, most (though not all) employees in the United States and similar cultures finished their workday after eight or nine hours and separated their personal time from the work day. There were no smartphones or Internet connections to keep them tethered to work on a 24/7 schedule. Even business travel was more of an ex- ception, due to its high cost. Most competitors were located in the same country, so they had similar work practices and labor costs. Today, work hours are longer (though arguably less than 100 years ago), employees experience more work-related stress, and there is grow- ing evidence that family and personal relations are suffering.
Little wonder that one of the most important employment issues over the past decade has been work–life balance. Work–life balance occurs when people are able to minimize con- flict between their work and nonwork demands.80 Most employees lack this balance, because they spend too many hours each week performing or thinking about their job, whether at the workplace, at home, or on vacation. This focus on work leaves too little time to fulfill
work–life balance The degree to which a person minimizes conflict between work and nonwork demands.
The board of directors in most Japanese companies usually consists of older generation Japanese males. The only diversity is whether the board member has an engineering or non-engineering education. Hitachi Chairman Takashi Kawamura recognized that this lack of diversity limited the conglomerate’s potential. “Governance handled by Japanese men with homogenous thinking is no good,” says Kawamura. “To be global is to bring diversity into the company’s governance.” Hitachi is in the process of diversifying its board. It now includes three foreign executives, including one female executive.67
mcs62589_ch01_002-029.indd Page 20 08/11/13 4:36 PM f-500 mcs62589_ch01_002-029.indd Page 20 08/11/13 4:36 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Chapter One Introduction to the Field of Organizational Behavior 21
nonwork needs and obligations. Our discussion of work-related stress (Chapter 4) will ex- amine work–life balance issues in more detail.
Another employment relationship trend is virtual work, whereby employees use in- formation technology to perform their jobs away from the traditional, physical work- place.82 Some virtual work occurs when employees are connected to the office while traveling or at clients’ offices. However, the most common form involves working at home rather than commuting to the office (often called telecommuting or teleworking). One estimate is that the number of American employees who work from home at least one day per month has increased from 7.6 million in 2004 to well above 17 million to- day. The U.S. government reports that 32 percent of its employees are eligible to tele- work, but only 170,000 actually make use of that policy. More than half of Canadian workers say they want to work at home some of the time, whereas less than 10 percent of them actually do so. More than 10 percent of Japanese employees work from home at least one day each week, a figure that the Japanese government wants to double within the next few years.83
Are you a good telecommuter? Visit connect.mcgrawhill.com to assess your adaptability to telework.
There has been much study and debate regarding the benefits and risks of virtual work, particularly working from home. The evidence suggests that telework attracts job applicants and improves employees’ work–life balance (which reduces stress) and productivity.84 One study of 25,000 IBM employees found that female telecommuters with children were able to work 40 hours per week, whereas non-telecommuters could only manage 30 hours before feeling work–life balance tension.
Telework also offers environmental benefits. Cisco Systems estimates that telecommuting among its employees worldwide avoids almost 50,000 metric tons of greenhouse gas emis- sion and saves employees $10 million in fuel costs each year. Deloitte saved $30 million in one year due to the reduced office space requirements as more employees worked part of the
virtual work Work performed away from the traditional physical workplace, using information technology.
Global Work–Life Balance Index81
Based on interviews with more than 16,000 business respondents from the Regus global contacts database, this exhibit shows the work–life balance index for each country listed, as well as globally (including several countries not shown here). A higher score indi- cates that employees in that coun- try experience better work–life balance. The index is standardized to 100 as the average country score in the first survey (in 2010).
0
20
95
109
123 124 129
145 151
40
60
80
100
120
140
160
Germany France USA Global Average
Australia China Brazil
mcs62589_ch01_002-029.indd Page 21 08/11/13 8:08 PM f-500 mcs62589_ch01_002-029.indd Page 21 08/11/13 8:08 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
22 Part One Introduction
week from home. Productivity also usually improves with telework in place. One study found that employees allocate 60 percent of time they would have been commuting to work and use the other 40 percent of that time for personal activities. When a major blizzard shut federal government offices in Washington, DC, 30 percent of employees teleworked, saving the government $30 million per day.85
Against these potential benefits, work-at-home employees face a number of real or poten- tial challenges. Family relations may suffer rather than improve if employees lack sufficient space and resources for a home office. Some employees complain of social isolation and reduced promotion opportunities when they work away from the office most of the time. To minimize problems of social isolation, many companies require teleworkers to visit the office once or twice each week.
Telework is clearly better suited to people who are self-motivated and organized, can work effectively with broadband and other technology, and have sufficient fulfillment of social needs elsewhere in their life. “They tend to be the kind of people who would stay late and do the job at the office, people who know what they’re responsible for and want to get it done,” says Michelle van Schouwen, president of van Schouwen Associates, an advertising and marketing firm in Longmeadow, Massachusetts.87 Virtual work arrangements are also more successful in organizations that evaluate employees by their performance outcomes rather than face time (i.e., visibility).88
Anchors of Organizational Behavior Knowledge Globalization, increasing workforce diversity, and emerging employment relationships are just a few of the trends that challenge organizations and make the field of organiza- tional behavior more relevant than ever before. To understand these and other topics, the field of organizational behavior relies on a set of basic beliefs or knowledge structures (see Exhibit 1.5). These conceptual anchors represent the principles on which OB knowledge is developed and refined.89
LO 1-4
A few years ago, Chris Keehn commuted for three hours round trip between his home and office at Deloitte LLC in downtown Chicago. Most days, his young daughter would be asleep when he left in the morning and when he returned home at night. The senior tax accountant solved this problem by becoming a teleworker four days each week. Working from home gives Keehn more time to take his daughter to school and attend her evening basketball games. Keehn even found that he communicates more often with his team. “I actually talk to them more now,” he explains. “On the day I go into the office, I make sure I touch base with everyone.”86
mcs62589_ch01_002-029.indd Page 22 08/11/13 4:36 PM f-500 mcs62589_ch01_002-029.indd Page 22 08/11/13 4:36 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Chapter One Introduction to the Field of Organizational Behavior 23
THE SYSTEMATIC RESEARCH ANCHOR A key feature of OB knowledge is that it should be based on systematic research, which typi- cally involves forming research questions, systematically collecting data, and testing hypothe- ses against those data.90 Appendix A at the end of this book provides a brief overview of these research methods. Systematic research investigation produces evidence-based management, which involves making decisions and taking actions on the basis of this research-derived evi- dence. It makes perfect sense, doesn’t it, that management practice should be founded on the best available systematic knowledge? Yet many of us who study organizations using systematic methods are amazed at how often corporate leaders embrace fads, consulting models, and their own pet beliefs, without bothering to find out if they actually work!91
There are many reasons why people have difficulty applying evidence-based manage- ment. Leaders and other decision makers are bombarded with so many ideas from newspa- pers, books, consultant reports, and other sources that it is a challenge to figure out which ones are based on good evidence. Another problem is that good OB research is necessarily generic; it is rarely described in the context of a specific problem in a specific organization. Managers therefore have the difficult task of figuring out which theories are relevant to their unique situation.
A third reason organizational leaders accept fads and other knowledge that lacks suffi- cient evidence is that consultants and popular book writers are rewarded for marketing their concepts and theories, not for testing to see if they actually work. Indeed, some manage- ment concepts have become popular (some have even found their way into OB textbooks!) because of heavy marketing, not because of any evidence that they are valid. Finally, as we will learn in Chapter 3, people form perceptions and beliefs quickly and tend to ignore evidence that their beliefs are inaccurate.
OB experts have proposed a few simple suggestions to create a more evidence-based or- ganization.95 First, be skeptical of hype, which is apparent when so-called experts say the idea is “new, “revolutionary,” and “proven.” In reality, most management ideas are evolution- ary adaptations that cannot be proven (i.e., science can disprove, but never prove; it can only find evidence to support a practice). Second, the company should embrace collective exper- tise rather than rely on charismatic stars and management gurus. Third, stories provide useful illustrations and possibly preliminary evidence of a useful practice, but they should never become the main foundation to support management action. Instead, managers must rely on more systematic investigations with larger samples. Finally, the firm should take a critical and neutral approach to popular trends and ideologies. Executives tend to get caught up in what their counterparts at other companies are doing, without determining the valid- ity of those trendy practices or their relevance for their own, particular organization.
EXHIBIT 1.5
Anchors of Organizational Behavior Knowledge
Import knowledge from other disciplines, not just create its own knowledge
Multidisciplinary anchor
Systematic research anchor
Study organizations using systematic research methods
Contingency anchor
Recognize that the effectiveness of an action may depend on the situation
Multiple levels of analysis anchor
Understand OB events from three levels of analysis: individual, team, organization
evidence-based management The practice of making decisions and taking actions based on research evidence.
mcs62589_ch01_002-029.indd Page 23 08/11/13 4:36 PM f-500 mcs62589_ch01_002-029.indd Page 23 08/11/13 4:36 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
24 Part One Introduction
THE MULTIDISCIPLINARY ANCHOR Organizational behavior is anchored by the idea that the field should welcome theories and knowledge in other disciplines, not just from its own isolated research base. For instance, psychological research has advanced our understanding of individual and inter- personal behavior. Sociologists have contributed to our knowledge of team dynamics, organizational socialization, organizational power, and other aspects of the social system. OB knowledge has also benefited from knowledge in emerging fields such as communica- tions, marketing, and information systems. This theory-borrowing practice from other disciplines is inevitable. Organizations have central roles in society, so they are the subject of many social sciences. Furthermore, organizations consist of people who interact with each other, so there is an inherent intersection between OB and most disciplines that study human beings.
Borrowing theories from other disciplines has helped the field of OB nurture a diversity of knowledge and perspectives about organizations, but there are a few concerns.96 One issue is whether OB suffers from a “trade deficit”—importing far more knowledge from other disciplines than is exported to other disciplines. By relying on theories developed in other fields, OB knowledge necessarily lags rather than leads in knowledge production. In
debating point IS THERE ENOUGH EVIDENCE TO SUPPORT EVIDENCE-BASED MANAGEMENT?
One of the core anchors of organizational behavior is that knowledge must be built on a solid foundation of scientifically based research. This evidence-based management (EBM) approach particularly embraces scientific methods—relevant measures, appropriate sampling, systematic experimental de- sign, and the like—because they produce more valid theories to guide management decisions. Scholars also advise managers to become more aware of these well-studied cause-effect princi- ples, and to use diagnostic tools (such as surveys and check- lists) to effectively apply those principles in the workplace. Invariably, supporters of the evidence-based management movement contrast this systematic approach with reliance on management fads, hyped consulting, or untested personal men- tal models. It seems obvious that we should rely on good evidence rather than bad evidence (or no evidence at all) to make sound decisions in the workplace. Yet there is another side to this debate.92 The question isn’t whether good evidence is valuable; it is about the meaning of “good evidence.” One concern is that scholars might be advocating an interpretation of good evidence that is far too narrow. They typically limit evidence to empirical research and consider qualitative information “anecdotal.” Albert Einstein tried to avoid this questionable view by keeping the following message framed on his wall: “Not everything that can be counted counts, and not everything that counts can be counted.”
Another concern is that managers don’t view organizational research as particularly relevant to the issues they face.93 This partly occurs because academic journals usually set very high standards for studies, requiring uncontaminated, quantifiable measures in environments that control for other factors. But managers do not operate in such pristine conditions. Their world is much more complex, with more obscure indicators of key variables. One indicator of this research–practice gap is that most organizational studies are correlational, whereas managers typically require knowledge of behavioral interven- tions. Only about 2 percent of organizational studies are real-world interventions.94
A third critique of the EBM movement is that the systematic elements of organizational research studies (e.g., sample size, measurement reliability, advanced data analysis methods) sometimes mask other potentially serious faults. Cross-cultural studies, for example, often use college student samples to rep- resent an entire culture. Lab studies with students assume they replicate workplace conditions, without considering substan- tial differences in skills and team dynamics between the two settings. Indeed, some meta-analyses report substantially dif- ferent results of studies using students versus employees. Fi- nally, even if the published research is valid, it is usually biased because studies with nonsignificant results are much less likely to be published.
mcs62589_ch01_002-029.indd Page 24 08/11/13 4:36 PM f-500 mcs62589_ch01_002-029.indd Page 24 08/11/13 4:36 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Chapter One Introduction to the Field of Organizational Behavior 25
contrast, OB-bred theories allow researchers to concentrate on the quality and usefulness of the theory.
Finally, heavy reliance on theories borrowed from other disciplines may leave OB vulner- able to a lack of common identity. The field could potentially become a place for researchers who are raised in and mainly identify with the other disciplines (psychology, sociology, and so on) rather than with organizational behavior. The lack of identification as an “OB scholar” might further challenge the field’s ability to develop its own theory and weaken its focus on practical relevance.
THE CONTINGENCY ANCHOR People and their work environments are complex, and the field of organizational behavior recognizes this by stating that a particular action may have different consequences in differ- ent situations. In other words, no single solution is best all of the time.97 Of course, it would be so much simpler if we could rely on “one-best-way” theories, in which a particular con- cept or practice has the same results in every situation. OB experts search for simpler theo- ries, but they also remain skeptical about sure-fire recommendations; an exception is inevitably around the corner. Thus, when faced with a particular problem or opportunity, we need to understand and diagnose the situation and select the strategy most appropriate under those conditions.98
THE MULTIPLE LEVELS OF ANALYSIS ANCHOR This textbook divides organizational behavior topics into three levels of analysis: individual, team (including interpersonal), and organization. The individual level includes the charac- teristics and behaviors of employees, as well as the thought processes that are attributed to them, such as motivation, perceptions, personalities, attitudes, and values. The team level of analysis looks at the way people interact. This includes team dynamics, decisions, power, organizational politics, conflict, and leadership. At the organizational level, we focus on how people structure their working relationships and how organizations interact with their environments.
Although an OB topic is typically pegged to one level of analysis, it often relates to mul- tiple levels.99 For instance, communication is located in this book as a team (interpersonal) process, but it also includes individual and organizational processes. Therefore, you should try to think about each OB topic at the individual, team, and organizational levels, not just at one of these levels.
The Journey Begins This chapter gives you some background about the field of organizational behavior. But it’s only the beginning of our journey. Throughout this book, we will challenge you to learn new ways of thinking about how people work in and around organizations. We begin this process in Chapter 2 by presenting a basic model of individual behavior, then introducing, over the next few chapters, various stable and mercurial characteristics of individuals that re- late to elements of the individual behavior model. Next, this book moves to the team level of analysis. We examine a model of team effectiveness and specific features of high-performance teams. We also look at decision making and creativity, communication, power and influence, conflict, and leadership. Finally, we shift our focus to the organizational level of analysis, where the topics of organizational structure, organizational culture, and organizational change are examined in detail.
mcs62589_ch01_002-029.indd Page 25 08/11/13 4:36 PM f-500 mcs62589_ch01_002-029.indd Page 25 08/11/13 4:36 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
26
1-1 Define organizational behavior and organizations, and discuss the importance of this field of inquiry.
Organizational behavior is the study of what people think, feel, and do in and around organizations. Organizations are groups of people who work interdependently toward some purpose. OB theories help people (a) make sense of the workplace, (b) question and rebuild their personal mental models, and (c) get things done in organizations. OB knowledge is for everyone, not just managers. OB knowledge is just as important for the organiza- tion’s financial health.
1-2 Compare and contrast the four current perspectives of organizational effectiveness.
The open systems perspective views organizations as complex organisms that “live” within an external environment. They depend on the external environment for resources, then use organizational subsystems to transform those resources into outputs, which are returned to the environment. Organiza- tions receive feedback from the external environment to main- tain a good “fit” with that environment. Fit occurs by adapting to the environment, managing the environment, or moving to another environment. According to the organizational learn- ing perspective, organizational effectiveness depends on the organization’s capacity to acquire, share, use, and store valu- able knowledge. Intellectual capital consists of human capital, structural capital, and relationship capital. Knowledge is re- tained in the organizational memory; companies also selec- tively unlearn. The high-performance work practices (HPWP) perspective identifies a bundle of systems and structures to leverage work- force potential. The most widely identified HPWPs are em- ployee involvement, job autonomy, developing employee competencies, and performance-/skill-based rewards. HPWPs improve organizational effectiveness by building human capital, increasing adaptability, and strengthening employee motivation and attitudes. The stakeholder perspective states that leaders manage the interests of diverse stakeholders by relying on their personal and organizational values for guidance. Ethics and cor- porate social responsibility (CSR) are natural variations of val- ues-based organizations, because they rely on values to determine the most appropriate decisions involving stakeholders. CSR
consists of organizational activities intended to benefit society and the environment beyond the firm’s immediate financial in- terests or legal obligations.
1-3 Debate the organizational opportunities and challenges of globalization, workforce diversity, and emerging employment relationships.
Globalization, which refers to various forms of connectivity with people in other parts of the world, has several economic and social benefits, but it may also be responsible for work intensification, reduced job security, and lessening work–life balance. Workforce diversity is apparent at both the surface level (observable demographic and other overt differences in people) and deep level (differences in personalities, beliefs, values, and attitudes). There is some evidence of deep-level diversity across generational cohorts. Diversity may be a com- petitive advantage that improves decision making and team performance on complex tasks, but it also imposes numerous challenges, such as dysfunctional team conflict and lower team performance. One emerging employment relationship trend is a call for more work–life balance (minimizing conflict between work and nonwork demands). Another employment trend is virtual work, particularly working from home (tele- work). Working from home potentially increases employee productivity and reduces employee stress, but it also may lead to social isolation, reduced promotion opportunities, and ten- sion in family relations.
1-4 Discuss the anchors on which organizational behavior knowledge is based.
The multidisciplinary anchor states that the field should de- velop from knowledge in other disciplines (e.g., psychology, sociology, economics), not just from its own isolated research base. The systematic research anchor states that OB knowl- edge should be based on systematic research, consistent with evidence-based management. The contingency anchor states that OB theories generally need to consider that there will be different consequences in different situations. The multiple levels of analysis anchor states that OB topics may be viewed from the individual, team, and organization levels of analysis.
chapter summary
corporate social responsibility (CSR), p. 16 deep-level diversity, p. 19 ethics, p. 16 evidence-based management, p. 23 globalization, p. 18 high-performance work practices (HPWP), p. 13
human capital, p. 10 intellectual capital, p. 10 open systems, p. 8 organizational behavior (OB), p. 4 organizational effectiveness, p. 7 organizational efficiency, p. 10 organizational learning, p. 10 organizations, p. 4
relationship capital, p. 11 stakeholders, p. 14 structural capital, p. 11 surface-level diversity, p. 18 values, p. 15 virtual work, p. 21 work–life balance, p. 20
key terms
mcs62589_ch01_002-029.indd Page 26 08/11/13 4:36 PM f-500 mcs62589_ch01_002-029.indd Page 26 08/11/13 4:36 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
27
critical thinking questions
CASE STUDY: IMPROVING HEALTH BY GETTING LEAN By Steven L. McShane, University of Western Australia
How is serving surgical patients similar to manufacturing a car? The answer is clear to staff at Sunderland Royal Hospital. The health facility in northern England borrowed several ideas from the nearby Nissan factory, one of the most efficient car plants in Europe, to improve its day surgery unit. “We took [Sunderland hospital staff ] on a tour of our plant, showing them a variety of lean processes in action, and let them decide which ones could be applied back at the hospital,” says a train- ing manager at Nissan’s factory in Sunderland. Lean management involves seeking ways to reduce and remove waste from work processes. Employees are typically involved, where they map out the work process and identify ways to reduce steps, time, spaces, and other resources without threatening the work objectives. Sunderland’s day surgery staff were actively involved in applying lean management to their work unit. After attending Nissan’s two-day workshop, they mapped out the work processes, questioned assumptions about the value or relevance of some activities, and discovered ways to reduce the lengthy patient wait times (which were up to three hours). There was some initial resistance and skepticism, but the hospital’s day surgery soon realized significant improvements in efficiency and service quality. “By working with Nissan’s staff, we have streamlined the patient pathway from 29 to 11 discrete stages,” says Anne Fleming, who oversees Sunderland’s 32-bed day case unit and its 54 staff. “We have done this by reducing duplication,
halving the time that patients spend in the unit to three hours by giving them individual appointment times, and in- troducing the just-in-time approach to the patient pathway.” Fleming also reports that Sunderland’s operating theatres are now much more efficient. Sunderland Royal Hospital is one of many health-care cen- ters around the world that are improving efficiency through lean thinking. After receiving training in Japan on lean prac- tices, several teams of doctors, nurses, and other staff from Virginia Mason Medical Center in Seattle, Washington, rede- signed their work flows to cut out 34 miles of unnecessary walking each day. Park Nicollet Health Services in Minneap- olis, Minnesota, improved efficiency at its ambulatory clinic to such an extent that the unit does not require a patient waiting area. One Park Nicollet team worked with orthope- dic surgeons to reduce by 60 percent the variety of instru- ments and supplies they ordered for hip and knee surgery. Flinders Medical Center also adopted lean management practices after the South Australian medical facility experi- enced severe congestion of patients in its emergency de- partment. After mapping out the steps in the patient journey through the department, staff realized that the process was inefficient and stressful for everyone, particu- larly as lower priority patients got “bumped” down the queue when more serious cases arrived. Now, incoming emergency patients are immediately streamed to one of two emergency teams: those who will be treated and sent
1. A friend suggests that organizational behavior courses are useful only to people who will enter management careers. Discuss the accuracy of your friend’s statement.
2. A young student from the United States is interested in doing international business across China, India, Brazil, and Russia. Discuss how the knowledge of OB can be useful to the student.
3. After hearing a seminar on organizational learning, a mining company executive argues that this perspective is relevant to software and other knowledge businesses, but it ignores the fact that mining companies cannot rely on knowledge alone to stay in business. They also need physical capital (such as extracting and ore-processing equipment) and land (where the minerals are located). In fact, these two may be more import- ant than what employees carry around in their heads. Evalu- ate the mining executive’s comments.
4. It is said that the CEO and other corporate leaders are keep- ers of the organization’s memory. Please discuss this.
5. A common refrain among executives is “People are our most important asset.” Relate this statement to any two of the
four perspectives of organizational effectiveness presented in this chapter. Does this statement apply better to some perspectives than to others? Why or why not?
6. Corporate social responsibility is one of the hottest issues in corporate boardrooms these days, partly because it is becom- ing increasingly important to employees and other stake- holders. In your opinion, why have stakeholders given CSR more attention recently? Does abiding by CSR standards potentially cause companies to have conflicting objectives with some stakeholders in some situations?
7. Look through the list of chapters in this textbook, and dis- cuss how globalization could influence each organizational behavior topic.
8. “Organizational theories should follow the contingency approach.” Comment on the accuracy of this statement.
9. What does evidence-based management mean? Describe situations you have heard about in which companies have practiced evidence-based management, as well as situations in which companies have relied on fads that lacked suffi- cient evidence of their worth.
mcs62589_ch01_002-029.indd Page 27 08/11/13 8:23 PM f-500 mcs62589_ch01_002-029.indd Page 27 08/11/13 8:23 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
28
WEB EXERCISE: DIAGNOSING ORGANIZATIONAL STAKEHOLDERS
home and those who will be treated and admitted to the hospital. This change immediately improved efficiency and the quality of patient care. Bolton Hospitals NHS Trust in the United Kingdom is yet another illustration of how lean management practices can improve organizational efficiency and effectiveness. By involving employees in an analysis of procedures, the hospital reduced average wait times for patients with fractured hips by 38 percent (from 2.4 to 1.7 days), which also resulted in a lower mortality rate for these patients. By smoothing out the inflow of work orders and rearranging the work process, Bolton’s pathology department cut the time to process sam- ples from 24–30 hours to just 2–3 hours, and it reduced the space used by 50 percent. “We know that our case for extra funding will fall on deaf ears unless we cut out waste in the system,” explains Dr. Gill Morgan, chief executive of the NHS Confederation. “Lean
works because it is based on doctors, nurses, and other staff leading the process and telling us what adds value and what doesn’t. They are the ones who know.”100
Discussion Questions 1. What perspective(s) of organizational effectiveness best
describe the application of lean management practices? Describe how specific elements of that perspective related to the interventions described in this case study.
2. Does lean management ignore some perspectives of orga- nizational effectiveness? If so, what are the unintended consequences of these practices that might undermine rather than improve the organization’s effectiveness?
3. In what situations, if any, would it be difficult or risky to apply lean management practices? What conditions make these practices challenging in these situations?
SELF-ASSESSMENT
IT ALL MAKES SENSE? PURPOSE This exercise is designed to help you compre- hend how organizational behavior knowledge can help you understand life in organizations.
INSTRUCTIONS (Note: Your instructor might conduct this activity as a self-assessment or as a team activity.) Read each of the statements below and circle whether each state- ment is true or false, in your opinion. The class will consider the answers to each question and discuss the implications for studying organizational behavior.
Due to the nature of this activity, the instructor will pro- vide the answers to these questions. There is no scoring key in Appendix B.
1. True False A happy worker is a productive worker. 2. True False A decision maker’s effectiveness increases
with the number of choices or alternatives available to her or him.
3. True False Organizations are more effective when they minimize conflict among employees.
PURPOSE This exercise is designed to help you under- stand how stakeholders influence organizations as part of the open-systems anchor.
MATERIALS Students need to select a company and, prior to class, retrieve and analyze publicly available information over the past year or two about that company. This may in- clude annual reports, which are usually found on the websites of publicly traded companies. Where possible, students should also scan full-text newspaper and magazine databases for arti- cles published over the previous year about the company.
INSTRUCTIONS The instructor may have students work alone or in groups for this activity. Students will select a company and investigate the relevance and influence of various stake- holder groups on the organization. Stakeholders can be identi- fied from annual reports, newspaper articles, website statements,
and other available sources. Stakeholders should be rank-ordered in terms of their perceived importance to the organization. Students should be prepared to present or discuss their rank ordering of the organization’s stakeholders, including evidence for this ordering.
Discussion Questions
1. What are the main reasons certain stakeholders are more important than others for this organization?
2. On the basis of your knowledge of the organization’s environmental situation, is this rank order of stakehold- ers in the organization’s best interest? Should specific other stakeholders be given higher priority?
3. What societal groups, if any, are not mentioned as stake- holders by the organization? Does this lack of reference to these unmentioned groups make sense?
mcs62589_ch01_002-029.indd Page 28 08/11/13 8:26 PM f-500 mcs62589_ch01_002-029.indd Page 28 08/11/13 8:26 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
29
4. True False Employees have more power with many close friends than with many acquaintances.
5. True False Companies are more successful when they have strong corporate cultures.
6. True False Employees perform better without stress. 7. True False The best way to change people and organi-
zations is by pinpointing the source of their current problems.
8. True False Female leaders involve employees in decisions to a greater degree than do male leaders.
9. True False The best decisions are made without emotion.
10. True False If employees feel they are paid unfairly, nothing other than changing their pay will reduce their feelings of injustice.
After reading this chapter, if you feel that you need additional tips on managing your studies, see www. mhhe.com/mcshane7e for more in-depth information and interactivities that correspond to this chapter.
mcs62589_ch01_002-029.indd Page 29 22/11/13 2:44 PM f-500 mcs62589_ch01_002-029.indd Page 29 22/11/13 2:44 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
2 Individual Behavior, Personality, and Values
le a
rn in
g o
b je
ct iv
es
After studying chapter 2, you should be able to:
2-1 Describe the four factors that directly influence individual behavior and performance.
2-2 Summarize the five types of individual behavior in organizations.
2-3 Describe personality and discuss how the “Big Five” personality dimensions and four MBTI types relate to individual behavior in organizations.
2-4 Summarize Schwartz’s model of individual values and discuss the conditions in which values influence behavior.
2-5 Describe three ethical principles and discuss three factors that influence ethical behavior.
2-6 Describe five values commonly studied across cultures.
30
chapter
mcs62589_ch02_030-061.indd Page 30 08/11/13 4:51 PM f-500 mcs62589_ch02_030-061.indd Page 30 08/11/13 4:51 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
PART 2: INDIVIDUAL BEHAVIOR AND PROCESSES
ardon the pun, but Iceland Foods Group Limited has become one of the hottest food companies in the United Kingdom. The frozen foods retailer achieved record profits in each of the past seven years and has expanded to more than 800 stores with 23,000 (mostly part-
time) employees. Iceland Foods is consistently ranked as one of the best large
organizations to work for in the United Kingdom. Employee turnover (22 percent) is
well below the industry average; 40 percent of its workers have been employed with
Iceland Foods for more than five years.
One of the key drivers of Iceland Foods’ success is employee motivation. “A well-
motivated staff is priceless,” says Malcolm Walker, the company’s founder and CEO.
“That is our secret weapon. Our staff are on fire. They are proud to work for Iceland
Foods.” Wages are modest (though second highest in the United Kingdom’s food retail
industry), but 95 percent of employees say they enjoy working there and would
recommend the company to others. Employees receive cash prizes, iPads, and other
perks for going the extra mile; those at the top performing stores also share a bonus.
Store managers with the best results are rewarded with free vacations and luxury cars.
Almost all of Iceland Foods’ employees (98 percent, according to the latest staff
survey) say they are clear about what is expected of them in their jobs. In addition,
94 percent say they receive all the training they need to do their job well. Store
employees attend numerous short training sessions focused on a single skill, while
store managers go through a full management development program. The company
also developed the Iceland Driver Academy program, where drivers for the
company’s new online shopping service learn to be “ambassadors for the service on
our customers’ doorsteps.”
All Iceland Foods store managers attend an annual meeting at which Walker and his
executive team imprint the company’s vision and values. A few years ago, for instance,
all 800 managers were flown to Walt Disney World in Orlando, Florida, where they
learned the finer details of one of the company’s core values. “We exposed our staff to
world-class customer service,” says Walker about the $6 million Disney excursion. “If
just ten percent of it transfers back home, it will be worth every penny.”1
a b K ss
P
31
Iceland Foods Group has become one of the hottest food retailers in the United Kingdom by focusing on employee motivation, skill development, and role perceptions.
mcs62589_ch02_030-061.indd Page 31 08/11/13 4:51 PM f-500 mcs62589_ch02_030-061.indd Page 31 08/11/13 4:51 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
32 Part Two Individual Behavior and Processes
Highly motivated staff, ongoing training, and clear work expectations have contributed to Iceland Foods’ meteoric rise over the past several years. This chapter begins by introducing the four direct drivers of individual behavior and performance that Iceland Foods applies to its business. Next, we review the five types of individual behavior that represent the individ- ual-level dependent variables found in most organizational behavior research. The second half of this chapter presents the topics of personality and values, including ethical and cross-cultural values.
MARS Model of Individual Behavior and Performance For most of the past century, experts have investigated the direct predictors of individual behavior and performance.2 One of the earliest formulas was performance 5 person 3 situation, where person includes individual characteristics and situation represents exter- nal influences on the individual’s behavior. Another frequently mentioned formula is performance 5 ability 3 motivation.3 Sometimes known as the “skill-and-will” model, this formula elaborates two specific characteristics within the person that influence indi- vidual performance. Ability, motivation, and situation are by far the most commonly mentioned direct predictors of individual behavior and performance, but in the 1960s, researchers identified a fourth key factor: role perceptions (the individual’s expected role obligations).4
Exhibit 2.1 illustrates these four variables—motivation, ability, role perceptions, and situational factors—which are represented by the acronym MARS.5 All four factors are critical influences on an individual’s voluntary behavior and performance; if any one of them is low in a given situation, the employee would perform the task poorly. For exam- ple, motivated salespeople with clear role perceptions and sufficient resources (situa- tional factors) will not perform their jobs as well if they lack sales skills and related knowledge (ability). Motivation, ability, and role perceptions are clustered together in the model because they are located within the person. Situational factors are external to the individual but still affect his or her behavior and performance.6 Let’s look at each of these four factors in more detail.
LO 2-1
Personality
Individual characteristics MARS model
Values
Self-concept
Perceptions
Emotions and attitudes
Stress
Motivation
AbilityAbility
Role perceptions
Situational factors
Behavior and results
• Task performance • Organizational citizenship • Counterproductive work behaviors • Joining/staying with the organization • Maintaining attendance
EXHIBIT 2.1 MARS Model of Individual Behavior and Results
mcs62589_ch02_030-061.indd Page 32 08/11/13 4:51 PM f-500 mcs62589_ch02_030-061.indd Page 32 08/11/13 4:51 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Chapter Two Individual Behavior, Personality, and Values 33
EMPLOYEE MOTIVATION Motivation represents the forces within a person that affect his or her direction, intensity, and persistence of voluntary behavior.7 Direction refers to the path along which people steer their effort. People have choices about where they put their effort; they have a sense of what they are trying to achieve and at what level of quality, quantity, and so forth. In other words, motivation is goal-directed, not random. People are motivated to arrive at work on time, finish a project a few hours early, or aim for many other targets. The second element of mo- tivation, called intensity, is the amount of effort allocated to the goal. Intensity is all about how much people push themselves to complete a task. For example, two employees might be motivated to finish their project a few hours early (direction), but only one of them puts forth enough effort (intensity) to achieve this goal.
Finally, motivation involves varying levels of persistence, that is, continuing the effort for a certain amount of time. Employees sustain their effort until they reach their goal or give up beforehand. To help remember these three elements of motivation, consider the meta- phor of driving a car in which the thrust of the engine is your effort. Direction refers to where you steer the car, intensity is how much you put your foot down on the gas pedal, and persistence is for how long you drive toward your destination. Remember that motivation is a force that exists within individuals; it is not their actual behavior. Thus, direction, inten- sity, and persistence are cognitive (thoughts) and emotional conditions that directly cause us to move.
ABILITY Employee abilities also make a difference in behavior and task performance. Ability includes both the natural aptitudes and the learned capabilities required to complete a task success- fully. Aptitudes are the natural talents that help employees learn specific tasks more quickly and perform them better. There are many physical and mental aptitudes, and our ability to acquire skills is affected by these aptitudes. For example, finger dexterity is an aptitude by which individuals learn more quickly and potentially achieve higher performance at picking up and handling small objects with their fingers. Employees with high finger dexterity are not necessarily better than others at first; rather, their learning tends to be faster and perfor- mance potential tends to be higher. Learned capabilities are the skills and knowledge that you currently possess. These capabilities include the physical and mental skills and knowl- edge you have acquired. Learned capabilities tend to wane over time when not in use. Apti- tudes and learned capabilities (skills and knowledge) are the main elements of a broader concept called competencies, which are characteristics of a person that result in superior per- formance.8 Some experts include personality and values as competencies, whereas others describe competencies as action-oriented results, such as serving customers and providing creative ideas.
The challenge is to match a person’s competencies with the job’s requirements because a good match tends to increase employee performance and well-being. One matching strat- egy is to select applicants who already demonstrate the re- quired competencies. For example, companies ask applicants to perform work samples, provide references for checking their past performance, and complete various selection tests. A second strategy is to train employees who lack specific
Visit connect.mcgrawhill.com for activities and test questions to help you learn about the MARS model and its four elements.
motivation The forces within a person that affect his or her direction, intensity, and persistence of voluntary behavior.
ability The natural aptitudes and learned capabilities required to successfully complete a task.
mcs62589_ch02_030-061.indd Page 33 08/11/13 8:09 PM f-500 mcs62589_ch02_030-061.indd Page 33 08/11/13 8:09 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
34 Part Two Individual Behavior and Processes
knowledge or skills needed for the job.10 The third person–job matching strategy is to redesign the job so that employees are given tasks only within their current abilities. For example, a complex task might be simplified—some aspects of the work are transferred to others—so that a new employee performs only tasks that he or she is currently able to perform. As the employee becomes more competent at these tasks, other tasks are added back into the job.
ROLE PERCEPTIONS Motivation and ability are important influences on individual behavior and performance, but employees also require accurate role perceptions to perform their jobs well. Role
perceptions refer to how clearly people un- derstand the job duties (roles) assigned to or expected of them. These perceptions range from role clarity to role ambiguity. Almost all employees at Iceland Foods, described in the chapter opening vignette, say they have clear role perceptions. In contrast, when a recent global survey asked employees what would most improve their performance, they identified “greater clarity about what the organization needs from me” as the first or second most important factor.12
Role clarity exists in three forms. First, employees have clear role perceptions when they understand the specific duties or con- sequences for which they are accountable. This may seem obvious, but employees are occasionally evaluated on job duties they were never told was within their zone of re- sponsibility. Second, role clarity exists when employees understand the priority of their various tasks and performance expec- tations. This is illustrated in the classic
34% of employed Americans say they have received training and development to perform their jobs better.
32% of employed Americans say their performance goals are aligned with the company’s business objectives.
28% of employed Americans say they have a clear understanding of how their job performance affects their employer’s business results.23%
of employed Americans say they’re provided with tools, resources, and/or a development plan to help them improve their performance.
34% of employed Americans say the feedback they receive helps them improve their performance and succeed in their work roles.
Mind the MARS Gap on Ability, Role Perceptions, and Situational Factors11
The legendary Waldorf Astoria Shanghai on the Bund has already received dozens of awards for its superbly restored heritage building, luxuriously appointed rooms, and exceptional service. Dirk De Cuyper, Waldorf Astoria Shanghai’s first general manager, says that the hotel carefully selected team members and spent considerable time training them. He says that luxury hotels are “a whole new territory for the hospitality industry in China. Hence the available labor force has to be trained and educated to match the expectations of visitors and guests staying in those high- end luxury hotels.”9
mcs62589_ch02_030-061.indd Page 34 08/11/13 4:51 PM f-500 mcs62589_ch02_030-061.indd Page 34 08/11/13 4:51 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Chapter Two Individual Behavior, Personality, and Values 35
dilemma of prioritizing quantity versus quality, such as how many customers to serve in an hour (quantity) versus how well the employee should serve each customer (quality). Role perception as prioritization also exists in the allocation of time and resources to various tasks, such as how much time to spend coaching employees each week versus meeting with suppliers and clients. Third, role clarity is about understanding the pre- ferred behaviors or procedures for accomplishing the assigned tasks. In these situations, there are two or more ways to perform a task, and the employee knows which approach is preferred by the company.
Role perceptions are important because they represent how well employees know where to direct their effort. Employees with role clarity perform work more accurately and efficiently, whereas those with role ambiguity waste considerable time and energy by performing the wrong tasks, or the right tasks but in the wrong way. Furthermore, role clarity is essential for coordination with coworkers and other stakeholders. For instance, Cirque du Soleil performers depend on one another to perform precise behaviors at exact times, such as catching each other in midair. Role clarity ensures that these expectations are met and the performances are executed safely. Finally, role clarity motivates employees because they have a higher belief that their effort will produce the expected outcomes. In other words, people are more confident exerting the required effort when they know what is expected of them.
SITUATIONAL FACTORS Individual behavior and performance also depend on the situation.13 This refers to condi- tions beyond the employee’s immediate control that constrain or facilitate behavior and performance.14 For example, employees who are motivated, skilled, and know their role obligations will nevertheless perform poorly if they lack time, budget, physical work facili- ties, and other situational conditions. Situational factors also refer to environmental cues that guide employee behavior.15 Workplaces are safer, for example, when hazards are clearly identified. The hazard is a situational factor in employee safety, but so are the barriers and warning signs that cue employees to avoid that hazard.
Types of Individual Behavior The four elements of the MARS model—motivation, ability, role perceptions, and situa- tional factors—affect all voluntary workplace behaviors and performance. There are many varieties of individual behavior, but most can be organized into the five categories described over the next few pages: task performance, organizational citizenship behaviors, counterpro- ductive work behaviors, joining and staying with the organization, and maintaining work attendance (Exhibit 2.2).
TASK PERFORMANCE Task performance refers to goal-directed behaviors under the individual’s control that sup- port organizational objectives.16 Most jobs require incumbents to complete several tasks. For example, foreign exchange traders at Morgan Stanley must be able to identify and exe- cute profitable trades, work cooperatively with clients and coworkers, assist in training new staff, and work on special telecommunications equipment without error. These tasks in- volve various degrees of working with people, data, things, and ideas.17 Foreign exchange traders almost continuously work with data, such as performing the technical analysis of trends; they coordinate and share information with coworkers and clients throughout the day (people); and they are frequently interpreting and synthesizing information from charts, news, and other sources (ideas). Foreign exchange traders spend little time interact- ing with “things” (e.g., manufacturing, designing, arranging) other than incidentally working with equipment.
role perceptions The degree to which a person understands the job duties assigned to or expected of him or her.
LO 2-2
mcs62589_ch02_030-061.indd Page 35 08/11/13 4:51 PM f-500 mcs62589_ch02_030-061.indd Page 35 08/11/13 4:51 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
36 Part Two Individual Behavior and Processes
When discussing task performance, we mainly think about performing the work effi- ciently and accurately. However, this proficiency is only one form of goal-directed behavior to support organizational objectives. A second form of behavior is adaptability, which refers to how well the employee responds to, copes with, and supports new circumstances and work patterns. A third form of task-related behavior is proactivity, which refers to how well the employee anticipates environmental changes and initiates new work patterns that are aligned with those changes.18
ORGANIZATIONAL CITIZENSHIP Employee behavior extends beyond performing specific tasks. It also includes various forms of cooperation and helpfulness to others that support the organization’s social and psycho- logical context.19 These activities are called organizational citizenship behaviors (OCBs). Some OCBs are directed toward individuals, such as assisting coworkers with their work problems, adjusting work schedules to accommodate coworkers, showing genuine courtesy toward coworkers, and sharing work resources (supplies, technology, staff ) with coworkers. Other OCBs represent cooperation and helpfulness toward the organization, such as sup- porting the company’s public image, taking discretionary action to help the organization avoid potential problems, offering ideas beyond those required for their own job, attending voluntary functions that support the organization, and keeping up with new developments in the organization.20
Some experts define OCBs as discretionary behaviors (employees don’t have to per- form them) based on the notion that they are outside the employee’s job duties. Yet contrary to this view, research has found that many employees believe it is part of their job to engage in some OCBs. Furthermore, companies sometimes (if not always) advise employees that helping coworkers, supporting the company’s public image, and other OCBs are a condition of employment.21 Indeed, there are many cases of employees los- ing their jobs because they failed to engage in some of these OCBs. Therefore, OCBs are
Types of individual behavior
Organizational citizenship
Maintaining attendance
Task performance
Counter- productive behavior
Joining/staying with the
organization
EXHIBIT 2.2
Five Types of Individual Behavior in the Workplace
organizational citizenship behaviors (OCBs) Various forms of cooperation and helpfulness to others that support the organization’s social and psychological context.
mcs62589_ch02_030-061.indd Page 36 08/11/13 4:51 PM f-500 mcs62589_ch02_030-061.indd Page 36 08/11/13 4:51 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Chapter Two Individual Behavior, Personality, and Values 37
best described as behaviors that support the organization’s social and psychological context through cooperation and helpfulness to others. They might be required or dis- cretionary behaviors.
OCBs can have a significant effect on individual, team, and organizational effectiveness. Employees who engage in more individual-directed OCBs tend to have higher task performance because they receive more support from coworkers. OCBs also increase team performance where members depend on each other.22 However, engaging in OCBs can also have negative consequences.23 Employees who perform more OCBs tend to have higher work–family conflict. Also, performing OCBs takes time and energy away from performing tasks, so employees who give more attention to OCBs risk lower career success in companies that reward task performance.
COUNTERPRODUCTIVE WORK BEHAVIORS Organizational behavior is interested in all workplace behaviors, including dysfunctional activities collectively known as counterproductive work behaviors (CWBs). CWBs are voluntary behaviors that have the potential to directly or indirectly harm the organization.24 Some of the many types of CWBs include harassing coworkers, creating unnecessary con- flict, deviating from preferred work methods (e.g., shortcuts that risk work quality), being untruthful, stealing, sabotaging work, avoiding work obligation (tardiness), and wasting re- sources. CWBs are not minor concerns; research suggests that they can substantially under- mine the organization’s effectiveness.
JOINING AND STAYING WITH THE ORGANIZATION Organizations are people working together toward common goals, so hiring and retaining talent is another critical set of behaviors.25 Although the weak economy has increased the pool of job applicants and reduced job turnover, employers still face challenges finding qual- ified applicants for specific job groups. According to one recent report, 59 percent of U.S. companies have difficulty attracting people in some critical skills. This problem is apparent in the health care industry. Some hospitals have closed beds or reduced services due to a lack of nursing staff.26
counterproductive work behaviors (CWBs) Voluntary behaviors that have the potential to directly or indirectly harm the organization.
Wesfarmers has grown from a farmers’ cooperative a century ago to become Australia’s largest company, one of the top 20 retailers in the world (Bunnings, Coles, Officeworks, and others), and one of the most admired organizations in the Asia-Pacific region. When asked to list the five key reasons for the company’s success, Wesfarmers CEO Richard Goyder quickly and decisively answered: “people, people, people, people, and people.” But Goyder also warned that finding and keeping talented employees is a considerable challenge. “Attracting, retaining and developing people is the number one issue facing Wesfarmers over the next 10 years,” he says.27
mcs62589_ch02_030-061.indd Page 37 08/11/13 4:51 PM f-500 mcs62589_ch02_030-061.indd Page 37 08/11/13 4:51 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
38 Part Two Individual Behavior and Processes
Even when companies are able to hire qualified staff in the face of shortages, they need to ensure that these employees stay with the company. Companies with high turnover suffer because of the high cost of replacing people who leave. More important, as was mentioned in the previous chapter, much of an organization’s intellectual capital is the knowledge car- ried around in employees’ heads. When people leave, some of this vital knowledge is lost, often resulting in lower productivity, poorer customer service, and so forth.
MAINTAINING WORK ATTENDANCE Along with attracting and retaining employees, organizations need everyone to show up for work at scheduled times. American employees are absent from scheduled work an average of only 5 days per year, but even low absenteeism can disrupt the work flow of other employees and undermine customer service. Chronic absenteeism can have more devastating effects. For instance, one study reported that more than 25 percent of pri- mary and secondary school teachers in India, Uganda, and Indonesia are absent from work on any given work day. The report warned that this absenteeism rate undermines the quality of children’s education to such an extent that it threatens the economic devel- opment of those countries.28
Why are employees absent or late for work?29 Employees often point to situational factors, such as bad weather, transit strikes, personal illness, or family demands (e.g., sick children). These are usually important factors, but some people still show up for work because of their strong motivation to attend, whereas others take sick leave at the slightest sign of bad weather or illness. Employees who experience job dissatisfaction, workplace incivility, or work-related stress are more likely to be absent or late for work, because tak- ing time off is a way of temporarily withdrawing from those difficult conditions. Absen- teeism is also higher in organizations with generous sick leave because this benefit minimizes the financial loss of taking time away from work. Another factor in absentee- ism is the person’s values and personality. Finally, studies report that absenteeism is higher in teams with strong absence norms, meaning that team members tolerate and even ex- pect coworkers to take time off.
Presenteeism Although organizational leaders worry about absenteeism, presenteeism may be more serious in some situations.30 Presenteeism occurs when people attend work even though their capacity to work is significantly diminished by illness, fatigue, personal problems, or other factors. Employees who attend work when they are unwell or unfit may worsen their own condition and increase health and safety risks of coworkers. Also, these employees tend to be less productive and may reduce the productivity of coworkers.
There are many reasons why people show up for work when they shouldn’t.31 Presentee- ism is more common among employees with low job security (such as new and temporary staff ), who lack sick leave pay or similar financial buffers, and whose absence would imme- diately affect many people (i.e., high centrality). Company or team norms about absenteeism also account for presenteeism. Personality plays a role too; some people possess traits that motivate them to show up for work when others would gladly recover at home. Personality is a widely cited predictor of most forms of individual behavior. It is also the most stable personal characteristic, so we introduce this topic next.
Personality in Organizations While applying for several jobs in the publishing industry, Christina was surprised that three of the positions required applicants to complete a personality test. “One page is a list of char- acteristics—sentimental, adventurous, attractive, compelling, helpful, etc.—and you check off the ones that best describe what others expect of you,” Christina recalls of one personality
LO 2-3
presenteeism Attending scheduled work when one’s capacity to perform is significantly diminished by illness or other factors.
mcs62589_ch02_030-061.indd Page 38 08/11/13 4:51 PM f-500 mcs62589_ch02_030-061.indd Page 38 08/11/13 4:51 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Chapter Two Individual Behavior, Personality, and Values 39
test. “The second page is the same list, but you check off the ones that you think truly de- scribe you.” Christina didn’t hear back from the first company after completing its personality test, so for the second company, she completed the personality test “according to a sales per- sonality” because that job was in sales. When writing the personality test at the third firm, she answered questions the way she thought someone would if they were “a good person, but honest” about what they thought. None of the applications resulted in a job offer, leaving Christina wondering what personality profile these companies were seeking and whether her strategy of guessing the best answer on these personality tests was a good idea.32
These companies were attempting to measure Christina’s personality. Personality is the relatively enduring pattern of thoughts, emotions, and behaviors that characterize a person, along with the psychological processes behind those characteristics.33 It is, in essence, the bundle of characteristics that make us similar to or different from other people. We estimate an individual’s personality by what they say and do, and we infer the person’s internal states—including thoughts and emotions—from these observable behaviors.
People typically exhibit a wide range of behaviors, yet within that variety are discernible patterns that we refer to as personality traits.34 Traits are broad concepts that allow us to label and understand individual differences. For example, you probably have some friends who are more talkative than others. You might know some people who like to take risks and oth- ers who are risk-averse. Each trait implies that there is something within the person, rather than environmental influences alone, that predicts this behavioral tendency. In fact, studies report that an individual’s personality traits measured in childhood predict various behaviors and outcomes in adulthood, including educational attainment, employment success, marital relationships, illegal activities, and health-risk behaviors.35
Although people have behavior tendencies, they do not act the same way in all situations. Such consistency would be considered abnormal because it indicates a person’s insensitivity to social norms, reward systems, and other external conditions.36 People vary their behavior to suit the situation, even if the behavior is at odds with their personality. For example, talk- ative people remain relatively quiet in a library where “no talking” rules are explicit and strictly enforced. However, personality differences are still apparent in these situations be- cause talkative people tend to do more talking in libraries relative to how much other people talk in libraries.
PERSONALITY DETERMINANTS: NATURE VERSUS NURTURE Most experts now agree that personality is shaped by both nature and nurture, although the relative importance of each continues to be debated and studied. Nature refers to our genetic or hereditary origins—the genes that we inherit from our parents. Studies of identical twins, particularly those separated at birth, reveal that heredity has a very large effect on personal- ity; up to 50 percent of variation in behavior and 30 percent of temperament preferences can be attributed to a person’s genetic characteristics.37 In other words, genetic code not only determines our eye color, skin tone, and physical shape, it also significantly affects our atti- tudes, decisions, and behavior.
Our personality is also affected by nurture—our socialization, life experiences, and other forms of interaction with the environment. Personality develops and changes mainly when people are young; it stabilizes by about 30 years of age, although some experts say personal- ity development continues to occur through to age 50.38 The main explanation of why per- sonality becomes more stable over time is that we form a clearer and more rigid self-concept as we get older. This increasing clarity of “who we are” serves as an anchor for our behavior because the executive function—the part of the brain that manages goal-directed behavior— tries to keep our behavior consistent with our self-concept.39 As self-concept becomes clearer and more stable with age, behavior and personality therefore also become more stable and consistent. We discuss self-concept in more detail in Chapter 3. The main point here is that personality is not completely determined by heredity; life experiences, particularly early in life, also shape each individual’s personality traits.
personality The relatively enduring pattern of thoughts, emotions, and behaviors that characterize a person, along with the psychological processes behind those characteristics.
mcs62589_ch02_030-061.indd Page 39 08/11/13 4:51 PM f-500 mcs62589_ch02_030-061.indd Page 39 08/11/13 4:51 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
40 Part Two Individual Behavior and Processes
FIVE-FACTOR MODEL OF PERSONALITY Hundreds of personality traits (sociable, depressed, cautious, talkative, and so forth) have been described over the years, so experts have tried to organize them into smaller clusters. The most researched and respected clustering of personality traits is the five-factor model (FFM).40 Several decades ago, personality experts identified more than 17,000 words that describe an individual’s personality. These words were distilled down to five broad personal- ity dimensions, each with a cluster of specific traits. Similar results were found in studies of different languages, suggesting that the five-factor model is fairly robust across cultures. These “Big Five” dimensions, represented by the handy acronym CANOE, are outlined in Exhibit 2.3 and described below:
• Conscientiousness. Conscientiousness characterizes people who are organized, dependable, goal-focused, thorough, disciplined, methodical, and industrious. People with low conscientiousness tend to be careless, disorganized, and less thorough.
• Agreeableness. This dimension includes the traits of being trusting, helpful, good- natured, considerate, tolerant, selfless, generous, and flexible. People with low agree- ableness tend to be uncooperative and intolerant of others’ needs as well as more suspicious and self-focused.
• Neuroticism. Neuroticism characterizes people who tend to be anxious, insecure, self-conscious, depressed, and temperamental. In contrast, people with low neuroti- cism (high emotional stability) are poised, secure, and calm.
• Openness to experience. This dimension is the most complex and has the least agreement among scholars. It generally refers to the extent to which people are imaginative, creative, unconventional, curious, nonconforming, autonomous, and aesthetically perceptive. Those who score low on this dimension tend to be more resistant to change, less open to new ideas, and more conventional and fixed in their ways.
Visit connect.mcgrawhill.com for activities and test questions to help you learn about the five-factor model of personality.
Personality dimension
People with higher scores on this dimension tend to be more:
Conscientiousness Organized, dependable, goal-focused, thorough, disciplined, methodical, industrious
Trusting, helpful, good-natured, considerate, tolerant, selfless, generous, flexible
Anxious, insecure, self-conscious, depressed, temperamental
Imaginative, creative, unconventional, curious, nonconforming, autonomous, perceptive
Outgoing, talkative, energetic, sociable, assertive
Agreeableness
Neuroticism
Openness to experience
Extraversion
EXHIBIT 2.3
Five-Factor Model Personality Dimensions
mcs62589_ch02_030-061.indd Page 40 08/11/13 8:20 PM f-500 mcs62589_ch02_030-061.indd Page 40 08/11/13 8:20 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Chapter Two Individual Behavior, Personality, and Values 41
• Extraversion. Extraversion characterizes people who are outgoing, talkative, ener- getic, sociable, and assertive. The opposite is introversion, which characterizes those who are quiet, cautious, and less interactive with others. Extraverts get their energy from the outer world (people and things around them), whereas introverts get their energy from the internal world, such as personal reflection on concepts and ideas. Introverts do not necessarily lack social skills. Rather, they are more inclined to direct their interests to ideas than to social events. Introverts feel quite comfortable being alone, whereas extraverts do not.
The Big 5 personality dimensions are associated with each of the five types of behavior described earlier.41 Agreeableness, conscientiousness, and emotional stability (low neuroti- cism) cluster around the broad characteristic of “getting along,” which relates to many or- ganizational citizenship behaviors. People with high agreeableness are more sensitive to others (more empathy, less conflict), those with high conscientiousness are more depend- able, and those with high emotional stability are more upbeat. Some writers suggest that extraversion also relates to getting along because extraverts are more motivated to interact with others. Another broad characteristic, called “getting ahead” is associated with open- ness to experience, extraversion, conscientiousness, and emotional stability. Those with high openness to experience are more eager to try out new ideas, extraverts are more asser- tive, those with high conscientiousness are more goal-oriented, and those with high emo- tional stability are more confident in their ability to perform well. Most personality dimensions relate to both getting along and getting ahead because specific traits within those dimensions have different effects. For instance, conscientious includes the specific trait called dependability, which motivates getting along, as well as the trait called goal orientation, which motivates getting ahead.
Personality traits are fairly good at predicting a number of workplace behaviors and outcomes, particularly when we strip away the effects of employee ability and other fac- tors. Conscientiousness and emotional stability (low neuroticism) stand out as the best personality predictors of individual performance for most job groups.42 Various studies have reported that conscientious employees set higher personal goals for themselves, are more motivated, and have higher performance expectations, compared to employees with low levels of conscientiousness. They also tend to have higher levels of organizational cit- izenship and work better in organizations that give employees more freedom than is found in traditional command-and-control workplaces. People with higher emotional stability have a more positive (can-do) belief system and are better at directing their energy toward the task at hand.43
The other three personality dimensions predict more specific types of employee be- havior and performance.44 Extraversion is associated with performance in sales and
Are you introverted or extraverted? Visit connect.mcgrawhill.com to assess your degree of introversion or extraversion.
five-factor model (FFM) The five broad dimensions representing most personality traits: conscientiousness, emotional stability, openness to experience, agreeableness, and extroversion.
conscientiousness A personality dimension describing people who are organized, dependable, goal- focused, thorough, disciplined, methodical, and industrious.
neuroticism A personality dimension describing people who tend to be anxious, insecure, self- conscious, depressed, and temperamental.
extraversion A personality dimension describing people who are outgoing, talkative, sociable, and assertive.
mcs62589_ch02_030-061.indd Page 41 11/11/13 4:54 PM user-f-w-198 mcs62589_ch02_030-061.indd Page 41 11/11/13 4:54 PM user-f-w-198 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
42 Part Two Individual Behavior and Processes
management jobs, where employees must interact with and influence people. Agreeableness is associated with performance in jobs where employees are expected to be cooperative and helpful, such as working in teams, customer relations, and other conflict-handling situations. People high on the openness-to-experience personality dimension tend to be more creative and adaptable to change. Finally, personality influences well-being, includ- ing emotional reactions to situations and preferred coping mechanisms.45 However, re- member that the Big 5 personality dimensions cluster several specific traits, and each trait’s effect varies for different types of performance. Also, the relationship between a personality trait and performance is sometimes (or often) non-linear. People with very high or very low levels of agreeableness, for example, might be less effective than those with moderate agreeableness.46
JUNGIAN PERSONALITY THEORY AND THE MYERS-BRIGGS TYPE INDICATOR The five-factor model of personality may have the most research support, but it is not the most popular in practice. That distinction goes to Jungian personality theory, which is measured through the Myers-Briggs Type Indicator (MBTI) (see Exhibit 2.4). Nearly a century ago, Swiss psychiatrist Carl Jung proposed that personality is primarily represented by the individual’s preferences regarding perceiving and judging information.47 Jung ex- plained that perceiving, which involves how people prefer to gather information or per- ceive the world around them, occurs through two competing orientations: sensing (S) and intuition (N). Sensing involves perceiving information directly through the five senses; it relies on an organized structure to acquire factual and preferably quantitative details. In contrast, intuition relies more on insight and subjective experience to see relationships
among variables. Sensing types focus on the here and now, whereas intui- tive types focus more on future possibilities.
Jung also proposed that judging—how people process information or make decisions based on what they have perceived—consists of two compet- ing processes: thinking (T) and feeling (F). People with a thinking orienta- tion rely on rational cause–effect logic and systematic data collection to make decisions. Those with a strong feeling orientation rely on their emo- tional responses to the options presented, as well as to how those choices
Are you a sensing or intuitive type? Visit connect.mcgrawhill.com to estimate your score on this Jungian personality type.
Myers-Briggs Type Indicator (MBTI) An instrument designed to measure the elements of Jungian personality theory, particularly preferences regarding perceiving and judging information.
If you work for the U.S. federal government, chances are you will complete the Myers-Briggs Type Indicator at some time in your career. More than 200 federal agencies use the MBTI. At least one-quarter of employees at the Environmental Protection Agency (EPA), from frontline staff to political leaders, know their MBTI type. EPA training coordinator Brian Twillman says work relationships are much better when people know their MBTI scores. “If we had not had the MBTI introduced into the agency as it’s been, there would be a lot of blind spots within the agency with managers,” claims Twillman, who says he is an INFP, whereas the EPA is dominated by INTJ staff.48
mcs62589_ch02_030-061.indd Page 42 11/11/13 4:54 PM user-f-w-198 mcs62589_ch02_030-061.indd Page 42 11/11/13 4:54 PM user-f-w-198 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Chapter Two Individual Behavior, Personality, and Values 43
affect others. Jung noted that along with differing in the four core processes of sensing, in- tuition, thinking, and feeling, people also differ in their degrees of extraversion–introversion, which was introduced earlier as one of the Big Five personality traits.
Along with measuring the personality traits identified by Jung, the MBTI measures Jung’s broader categories of perceiving and judging, which represents a person’s attitude to- ward the external world. People with a perceiving orientation are open, curious, and flexible; prefer to adapt spontaneously to events as they unfold; and prefer to keep their options open. Judging types prefer order and structure and want to resolve problems quickly.
The MBTI is one of the most widely used personality tests in work settings, as well as in career counseling and executive coaching.50 Even so, the MBTI and Jung’s psychologi- cal types model have received uneven support.51 On the one hand, MBTI seems to im- prove self-awareness for career development and mutual understanding. It also does a reasonably good job of representing Jung’s psychological types. On the other hand, the MBTI poorly predicts job performance and is generally not recommended for employ- ment selection or promotion decisions. For example, although one study found that intu- itive types are more common in higher level than lower level management, other research has found no relationship between any MBTI types and effective leadership. One recent large-scale study also reported that the MBTI scores of team members are not useful for predicting the team’s development. Finally, the MBTI overlaps with four of the five di- mensions of the five-factor personality model, yet it does so less satisfactorily than existing Big Five personality measures.52
• Talkative • Externally focused • Assertive
Getting energy
Perceiving information
Making decisions
Orienting to the external world
Extraversion (E)
• Concrete • Realistic • Practical
Sensing (S)
• Logical • Objective • Impersonal
Thinking (T)
• Organized • Schedule-oriented • Closure-focused
Judging (J)
• Quiet • Internally focused • Abstract
Introversion (I)
• Imaginative • Future-focused • Abstract
Intuitive (N)
• Empathetic • Caring • Emotion-focused
Feeling (F)
• Spontaneous • Adaptable • Opportunity-focused
Perceiving (P)
EXHIBIT 2.4
Jungian and Myers-Briggs Type Indicator Types49
Source: Modified and reproduced by special permission of the Publisher, CPP, Inc., Mountain View, CA 994043 from Introduction to Type and Careers by Allen L. Hammer. Copyright 1993 by CPP, Inc. All rights reserved. Further reproduction is prohibited without the Publisher’s written consent.
Can you identify someone’s personality from the words he or she uses when blogging? Visit connect.mcgrawhill.com to assess how well you decipher personality traits from blogging words.
mcs62589_ch02_030-061.indd Page 43 11/11/13 4:54 PM user-f-w-198 mcs62589_ch02_030-061.indd Page 43 11/11/13 4:54 PM user-f-w-198 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
44 Part Two Individual Behavior and Processes
PERSONALITY TESTING IN ORGANIZATIONS Personality has gained considerable attention in OB research and in the workplace. The MBTI instrument is mostly used for team building and career development. The five-factor model is more commonly found in scholarly research, but it is increasingly used to assess job applicants. The applicant’s personality is typically measured using a self-completed paper-and-pencil test. However, a few firms have discovered how to estimate an applicant’s personality from their writing on blogs, Facebook pages, and other public sources. Extraver- sion, openness to experience, and agreeableness are usually the easiest traits to estimate from the content of online sources, whereas neuroticism is the most difficult.53
The use of personality testing is illustrated at Amtrak. Soon after Amtrak won the Metrolink commuter service contract in Southern California, it required train engineers and conductors to complete a Big Five personality inventory as a condition of future employ- ment. A horrendous Metrolink accident claiming two dozen lives occurred two years before Amtrak took over, because a train engineer ran a red light while distracted by text messag- ing.54 As a result, Amtrak apparently prefers train crew members with a “focused intro- verted” personality, because employees with these traits are not distracted while operating the train or performing repetitive tasks.
Personality testing wasn’t always this popular in organizations. Two decades ago, compa- nies avoided personality tests due to concerns that they do not predict job-related behavior and might unfairly discriminate against visible minorities and other identifiable groups. Personality testing slowly regained acceptance as studies reported that specific traits cor- related with specific indicators of job performance (as we described earlier). Today, person- ality testing flourishes to such an extent that some experts warn we may have gone too far in organizational settings.
debating point SHOULD COMPANIES USE PERSONALITY TESTS TO SELECT JOB APPLICANTS?
Personality theory has made significant strides over the past two decades, particularly in demonstrating that specific traits are as- sociated with specific workplace behaviors and outcomes. Vari- ous studies have reported that specific Big Five dimensions predict overall job performance, organizational citizenship, lead- ership, counterproductive work behaviors, training performance, team performance, and a host of other important outcomes. These findings cast a strong vote in favor of personality testing in the workplace. A few prominent personality experts urge caution, however.55 They point out that although traits are associated with workplace behavior to some extent, there are better predictors of work per- formance, such as work samples and past performance. Further- more, selection procedures typically assume that more of a personality trait is better, whereas several (although not all) stud- ies indicate that the best candidates might be closer to the middle than the extremes of the range.56 For instance, job performance apparently increases with conscientiousness, yet employees with high conscientiousness might be so thorough that they become perfectionists, which can stifle rather than enhance job perfor- mance.57 A third concern is that, depending on how the selection
decision applies the test results, personality instruments may un- fairly discriminate against specific groups of people.58
A fourth worry is that most personality tests are self-reported scales, so applicants might try to fake their answers. Worse, the test scores might not represent the individual’s personality or anything else meaningful because test takers often don’t know what personality traits the company is looking for. Studies show that candidates who try to fake “good” personality scores change the selection results. Supporters of personality testing offer the counterargument that few job applicants try to fake their scores.59 One major study recently found that most personality dimensions are estimated better by observers than by self-ratings, but few companies rely on ratings from other people.60
Finally, personality testing might not convey a favorable image of the company. Amtrak’s use of personality testing at Metrolink resulted in conflict with the railway worker unions. The British op- erations of PricewaterhouseCoopers (PwC) discovered that its personality test discouraged female applicants from applying be- cause of concerns that the test was too impersonal and could be faked. “Our personality test was seen to alienate women and so we had to respond to that,” says PwC’s head of diversity.61
mcs62589_ch02_030-061.indd Page 44 08/11/13 4:51 PM f-500 mcs62589_ch02_030-061.indd Page 44 08/11/13 4:51 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Chapter Two Individual Behavior, Personality, and Values 45
Values in the Workplace Colleen Abdoulah developed strong personal values from her parents while she was growing up. In particular, she learned to value equality (“you’re no better than anyone and they are no better than you”), having the courage to do the right thing, and forming relationships with people so they feel a sense of ownership. Abdoulah not only practices these values every day, she has instilled them at Wide Open West, the Denver-based Internet, cable, and phone provider where she is CEO to 1,300 employees. “[Our employees] display the courage to do the right thing, serve each other and our customers with humility, and celebrate our learn- ings and success with grace,” says Abdoulah. “Anyone can set values, but we have operation- alized our values so that they affect everything we do every day.”62
Colleen Abdoulah and other successful people often refer to their personal values and the critical events that formed those values earlier in life. Values, a concept that we introduced in Chapter 1, are stable, evaluative beliefs that guide our preferences for outcomes or courses of action in a variety of situations.63 They are perceptions about what is good or bad, right or wrong. Values tell us to what we “ought” to do. They serve as a moral compass that directs our motivation and, potentially, our decisions and actions.
People arrange values into a hierarchy of preferences, called a value system. Some individ- uals value new challenges more than they value conformity. Others value generosity more than frugality. Each person’s unique value system is developed and reinforced through so- cialization from parents, religious institutions, friends, personal experiences, and the society in which he or she lives. As such, a person’s hierarchy of values is stable and long-lasting. For example, one study found that the value systems of a sample of adolescents were remarkably similar 20 years later when they were adults.64
Notice that our description of values has focused on individuals, whereas executives often describe values as though they belong to the organization. In reality, values exist only within individuals—we call them personal values. However, groups of people might hold the same or similar values, so we tend to ascribe these shared values to the team, department, organi- zation, profession, or entire society. The values shared by people throughout an organization (organizational values) receive fuller discussion in Chapter 14 because they are a key part of corporate culture. The values shared across a society (cultural values) receive attention later in this chapter.
Values and personality traits are related to each other, but the two concepts differ in a few ways.65 The most noticeable distinction is that values are evaluative—they tell us what we ought to do—whereas personality traits describe what we naturally tend to do. A second distinction is that personality traits have minimal conflict with one another (e.g., you can have high agreeableness and high introversion), whereas some values are opposed to other values. For example, someone who values excitement and challenge would have difficulty also valuing stability and moderation. Third, although personality and values are both partly determined by heredity, values are influenced more by socialization, whereas personality traits are more innate.
TYPES OF VALUES Values come in many forms, and experts on this topic have devoted considerable attention to organizing them into clusters. Several decades ago, social psychologist Milton Rokeach
What are your dominant values? Visit connect.mcgrawhill.com to assess which of the 10 categories of values in Schwartz’s circumplex model are most important to you.
LO 2-4
mcs62589_ch02_030-061.indd Page 45 08/11/13 8:10 PM f-500 mcs62589_ch02_030-061.indd Page 45 08/11/13 8:10 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
46 Part Two Individual Behavior and Processes
developed two lists of values, distinguishing means (instrumental values) from end goals (terminal values). Although Rokeach’s lists are still mentioned in some organizational behav- ior sources, they were replaced by another model almost two decades ago. The instrumen- tal–terminal values distinction was neither accurate nor useful, and it overlooked values that are now included in the current dominant model.
Today, the dominant model of personal values is the one developed and tested by social psychologist Shalom Schwartz and his colleagues.66 Schwartz’s list of 57 values builds on Rokeach’s earlier work but does not distinguish instrumental from terminal values. Instead, research has found that human values are organized into the circular model (circumplex) shown in Exhibit 2.5. This model clusters the 57 specific values into 10 broad values catego- ries: universalism, benevolence, tradition, conformity, security, power, achievement, hedo- nism, stimulation, and self-direction. For example, conformity includes four specific values: politeness, honoring parents, self-discipline, and obedience.
These 10 broad values categories are further clustered into four quadrants. One quad- rant, called openness to change, refers to the extent to which a person is motivated to pursue innovative ways. This quadrant includes the value categories of self-direction (creativity, in- dependent thought), stimulation (excitement and challenge), and hedonism (pursuit of pleasure, enjoyment, gratification of desires). The opposing quadrant is conservation, which is the extent to which a person is motivated to preserve the status quo. The conservation quadrant includes the value categories of conformity (adherence to social norms and expec- tations), security (safety and stability), and tradition (moderation and preservation of the status quo).
The third quadrant in Schwartz’s circumplex model, called self-enhancement, refers to how much a person is motivated by self-interest. This quadrant includes the value categories of achievement (pursuit of personal success), power (dominance over others), and hedonism
Self- transcendence
Self- enhancement
Universalism
Tradition
Benevolence
Conformity
Security
Power
Achievement
Hedonism
Stimulation
Self-direction
Conservation
Openness to change
EXHIBIT 2.5 Schwartz’s Values Circumplex
mcs62589_ch02_030-061.indd Page 46 08/11/13 4:51 PM f-500 mcs62589_ch02_030-061.indd Page 46 08/11/13 4:51 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Chapter Two Individual Behavior, Personality, and Values 47
(a values category shared with openness to change). The opposite of self-enhancement is self-transcendence, which refers to motivation to promote the welfare of others and nature. Self-transcendence includes the value categories of benevolence (concern for others in one’s life) and universalism (concern for the welfare of all people and nature).
VALUES AND INDIVIDUAL BEHAVIOR Personal values guide our decisions, behavior, and performance to some extent. For instance, one recent study found that achievement values predict a student’s performance in college courses, even after controlling for personality traits. Another study reported that achieve- ment, benevolence, and self-direction values are associated with specific forms of organiza- tional citizenship behavior when working in student teams.67
Although people think they act consistently with their hierarchy of values, there is often a “disconnect” between personal values and individual behavior.68 One influence on the values–behavior link is the situation. Work environments influence our behavior, at least in the short term, so they necessarily encourage or discourage values-consistent behavior. This sometimes occurs without our awareness, but more often we blame the situation for preventing us from applying our values.
Another factor is that we are more likely to apply values when we actively think about them and understand their relevance to the situation. Some situations easily trigger awareness of our values. For example, you become aware that you value security when asked to perform a risky task. However, values are abstract concepts, so their relevance to specific situations is not obvious much of the time. We literally need to be reminded of our dominant personal values in these situations to ensure that we apply those values. Furthermore, we need to understand that the values we think about are relevant to the situation, such as making a decision or forming an attitude.69
The effect of values awareness on behavior was apparent in the following study:70 Stu- dents were given a math test and paid for each correct answer. One group submitted their results to the experimenter for scoring, so they couldn’t lie about their results. A second group could lie because they scored the test themselves and told the experimenter that test score. A third group was similar to the second (they scored their own test), but their test included the following statement, and students were required to sign their name to that statement: “I understand that this short survey falls under (the university’s) honor sys- tem.” (The university had no such honor system.) The researchers estimated that some students cheated when they scored their own test without the “honor system” statement, whereas no one given the “honor system” form lied about their results. Similar results occurred when, instead of an honor statement, the third group was first asked to recall the Ten Commandments. The message here is that people are more likely to apply their values (honesty, in this case) when explicitly reminded of those values and see their relevance to the situation.
VALUES CONGRUENCE Values tell us what is right or wrong and what we ought to do. This evaluative characteristic affects how comfortable we are with specific organizations and individuals. The key concept here is values congruence, which refers to how similar a person’s values hierarchy is to the values hierarchy of the organization, a coworker, or another source of comparison. Person– organization values congruence occurs when a person’s values are similar to the organization’s dominant values. This form of values congruence increases (to some extent) the chance that employees will make decisions and act in ways consistent with organizational expectations. It also leads to higher job satisfaction, loyalty, and organizational citizenship, as well as lower stress and turnover.71 “The most difficult but rewarding accomplishment in any career is ‘living true’ to your values and finding companies where you can contribute at the highest level while being your authentic self,” says Cynthia Schwalm, a senior executive at Optimer Pharmaceuticals in New York City.72
mcs62589_ch02_030-061.indd Page 47 08/11/13 4:51 PM f-500 mcs62589_ch02_030-061.indd Page 47 08/11/13 4:51 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
48 Part Two Individual Behavior and Processes
Are organizations the most successful when every employee’s personal values are parallel with the company’s values? Not at all! While a comfortable degree of values congruence is necessary for the reasons just noted, organizations also benefit from some level of incongruence. Employees with diverse values offer different perspectives, which potentially lead to better decision making. Also, too much congruence can create a “corporate cult” that po- tentially undermines creativity, organizational flexibility, and business ethics.
A second type of values congruence involves how consistent the values apparent in our actions (enacted values) are with what we say we believe in (espoused values). This espoused–en- acted value congruence is especially important for people in lead- ership positions, because any obvious gap between espoused and enacted values undermines their perceived integrity, a crit- ical feature of effective leaders. One global survey reported that 55 percent of employees believe senior management behaves consistently with the company’s core values.74 Some companies try to maintain high levels of espoused–enacted values congru- ence by surveying subordinates and peers about whether the manager’s decisions and actions are consistent with the compa- ny’s espoused values.
A third category, organization–community values congruence, refers to the similarity of an organization’s dominant values with the prevailing values of the community or society in which it conducts business.75 Global organizations may experience higher employee turnover and difficult community relations if they try to impose their home country’s values in other cultures where they do business. Thus, globalization calls for a delicate
balancing act: Companies depend on shared values to maintain consistent standards and behaviors, yet they need to operate within the values of different cultures around the world.
Chick-fil-A president Dan Cathy stirred up controversy when he publicly stated that same-sex marriage was contrary to his personal values. The mayors of three major cities (among others) expressed their opposition to Cathy’s remarks. The mayor of Chicago proclaimed that the fast food restaurant chain should be prevented from expanding in his city because “Chick-fil-A’s values are not Chicago values.” Chick-fil-A says it does not discriminate against the gay and lesbian community. Still, these events shone a spotlight on the company’s strong faith-based values. These values have attracted many of the firm’s most loyal employees over the years. “I like Chick-fil-A’s core values as a company,” says a franchise operator in Maryland. “Chick-fil-A’s core values line up well with mine,” echoes a franchise operator in Georgia.73
Visit connect.mcgrawhill.com for activities and test questions to help you learn about business ethics.
Ethical Values and Behavior When asked to identify the most important attribute of a leader, employees mention intel- ligence, decisiveness, and compassion, but these characteristics don’t top the list. Instead, across numerous surveys, employees typically choose honesty/ethics as the most important characteristic of effective corporate leaders.76 Ethics refers to the study of moral principles or values that determine whether actions are right or wrong and outcomes are good or bad (see Chapter 1). People rely on their ethical values to determine “the right thing to do.” The importance of ethical corporate conduct is embedded in business programs and
LO 2-5
mcs62589_ch02_030-061.indd Page 48 08/11/13 8:18 PM f-500 mcs62589_ch02_030-061.indd Page 48 08/11/13 8:18 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Chapter Two Individual Behavior, Personality, and Values 49
appears regularly in the news, yet surveys report fairly consistent levels of observed wrong- doing in the workplace.
THREE ETHICAL PRINCIPLES To better understand business ethics, we need to consider three distinct types of ethical principles: utilitarianism, individual rights, and distributive justice.77 While your personal values might sway you more toward one principle than the others, all three should be ac- tively considered to put important ethical issues to the test.
• Utilitarianism. This principle advises us to seek the greatest good for the greatest number of people. In other words, we should choose the option that provides the highest degree of satisfaction to those affected. This is sometimes known as a conse- quential principle because it focuses on the consequences of our actions, not on how we achieve those consequences. One problem with utilitarianism is that it is almost impossible to evaluate the benefits or costs of many decisions, particularly when many stakeholders have wide-ranging needs and values. Another problem is that most of us are uncomfortable engaging in behaviors that seem, well, unethical to attain results that are ethical.
• Individual rights. This principle reflects the belief that everyone has entitlements that let her or him act in a certain way. Some of the most widely cited rights are freedom of movement, physical security, freedom of speech, fair trial, and freedom from tor- ture. The individual rights principle includes more than legal rights; it also includes human rights that everyone is granted as a moral norm of society. One problem with individual rights is that certain individual rights may conflict with others. The share- holders’ right to be informed about corporate activities may ultimately conflict with an executive’s right to privacy, for example.
• Distributive justice. This principle suggests that people who are similar to each other should receive similar benefits and burdens; those who are dissimilar should receive different benefits and burdens in proportion to their dissimilarity. For example, we expect that two employees who contribute equally in their work should receive similar rewards, whereas those who make a lesser contribution should receive less. A variation of the distributive justice principle says that inequalities are acceptable when they benefit the least well off in society. Thus, employees in risky jobs should be paid more if their work benefits others who are less well off. One problem with the distributive justice principle is that it is difficult to agree on who is “similar” and what factors are “relevant.” We discuss distributive justice further in Chapter 5.
MORAL INTENSITY, MORAL SENSITIVITY, AND SITUATIONAL INFLUENCES Along with ethical principles and their underlying values, three other factors influence ethi- cal conduct in the workplace: the moral intensity of the issue, the individual’s moral sensi- tivity, and situational influences.78
Moral intensity Moral intensity is the degree to which an issue demands the applica- tion of ethical principles. Decisions with high moral intensity have more significant ethical outcomes, so the decision maker needs to apply ethical principles more carefully to resolve it. Several factors influence the moral intensity of an issue, including those listed in Exhibit 2.6. Keep in mind that this list represents the factors people tend to think about; some of them might not be considered morally acceptable when people are formally making ethical decisions.79
moral intensity The degree to which an issue demands the application of ethical principles.
mcs62589_ch02_030-061.indd Page 49 08/11/13 4:51 PM f-500 mcs62589_ch02_030-061.indd Page 49 08/11/13 4:51 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
50 Part Two Individual Behavior and Processes
Moral Sensitivity Moral sensitivity (also called ethical sensitivity) is a characteristic of the person, namely, his or her ability to detect a moral dilemma and estimate its relative importance. This awareness includes both cognitive (logical thinking) and emotional level awareness that something is or could become morally wrong.80 People with high moral sen- sitivity can more quickly and accurately estimate the moral intensity of the issue. This awareness does not necessarily translate into more ethical behavior; it just means they are more likely to know when unethical behavior occurs.
Several factors predict and change a person’s moral sensitivity.81 Empathy is a key influ- ence because it involves being sensitive to the needs of others and, consequently, makes us more aware of ethical dilemmas involving others. Women typically have higher moral sensi- tivity compared to men, possibly because women tend to have higher empathy. Another factor is expertise or knowledge of prescriptive norms and rules. For example, accountants would be more morally sensitive regarding the appropriateness of specific accounting proce- dures than would someone who is not trained in this profession. A third influence on moral sensitivity is direct experience with moral dilemmas. These experiences likely generate inter- nal cues that trigger awareness of future ethical dilemmas with similar characteristics.
A final predictor of moral sensitivity is the person’s mindfulness.82 Mindfulness refers to a person’s receptive and impartial attention to and awareness of the present situation as well as to one’s own thoughts and emotions in that moment. Mindfulness increases moral sensitivity because it involves actively monitoring the environment, as well as being sensitive to our responses to that envi- ronment. This vigilance requires effort as well as skill to receptively evaluate our thoughts and emotions.
moral sensitivity A person’s ability to recognize the presence of an ethical issue and determine its relative importance.
mindfulness A person’s receptive and impartial attention to and awareness of the present situation as well as to one’s own thoughts and emotions in that moment
MORAL INTENSITY FACTOR MORAL INTENSITY QUESTION MORAL INTENSITY IS HIGHER WHEN:
*These are factors people tend to think about when determining the moral intensity of an issue. Whether some of these questions should be relevant is itself an ethical question. Source: Based on information in T. J. Jones, “Ethical Decision Making by Individuals in Organizations: An Issue Contingent Model,” Academy of Management Review 16 (1991), pp. 366–395; J. Tsalikis, B. Seaton, and P. Shepherd. “Relative Importance Measurement of the Moral Intensity Dimensions.” Journal of Business Ethics 80, no. 3 (2008), pp. 613–626.
EXHIBIT 2.6 Factors Influencing Perceived Moral Intensity*
Magnitude of consequences How much harm or benefit will occur to The harm or benefit is larger. others as a result of this action?
Social consensus How many other people agree that this Many people agree. action is ethically good or bad?
Probability of effect (a) What is the chance that this action The probability is higher. will actually occur?
(b) What is the chance that this action will actually have good or bad consequences?
Temporal immediacy How long after the action will the The time delay is shorter. consequences occur?
Proximity How socially, culturally, psychologically, Those affected are close rather than distant. and/or physically close to me are the people affected by this decision?
Concentration of effect (a) How many people are affected by Many people are affected. this action?
(b) Are the people affected by this action Those affected are easily easily identifiable as a group? identifiable as a group.
mcs62589_ch02_030-061.indd Page 50 08/11/13 4:51 PM f-500 mcs62589_ch02_030-061.indd Page 50 08/11/13 4:51 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Chapter Two Individual Behavior, Personality, and Values 51
Unfortunately, we have a natural tendency to minimize effort by engaging in mindless- ness. For instance, research indicates that we have lower moral sensitivity when observing an organization, team, or individual we believe has high ethical standards.83 We assume the source is unlikely to engage in any misconduct, so we switch from mindfulness to automatic pilot. If unusual activity is detected, we are less likely to interpret that event as unethical. For instance, one of the most serious cases of accounting fraud in the United States occurred because the company’s chief financial officer was highly respected in the industry, so em- ployees took longer to realize that he was engaging in fraudulent activities. Even when some of his practices seemed suspicious, accounting staff initially assumed the chief financial offi- cer was introducing innovative—and legal—accounting procedures.84
Situational Factors A final reason why good people engage in unethical decisions and behavior is the situation in which the conduct occurs. Employees say they regularly experi- ence pressure from top management that motivates them to lie to customers, breach regula- tions, or otherwise act unethically. Almost half of employees in one survey said they encounter situations that invite misconduct; about one-quarter of employees said their workplace actually promotes “shoddy ethics.”85 Situational factors do not justify unethical conduct. Rather, we need to be aware of these factors so that organizations can reduce their influence in the future.
SUPPORTING ETHICAL BEHAVIOR Most large and medium-size organizations apply one or more strategies to improve ethical conduct. One of the most basic steps in this direction is a code of ethical conduct—a state- ment about desired practices, rules of conduct, and philoso- phy about the organization’s relationship to its stakeholders and the environment. Almost all Fortune 500 companies in the United States and the majority of the 500 largest compa- nies in the United Kingdom have ethics codes.86 These codes are supposed to motivate and guide employee behavior, sig- nal the importance of ethical conduct, and build the firm’s trustworthiness to stakeholders. However, critics suggest that they do little to reduce unethical conduct.
Some companies also have ways to confidentially com- municate wrongdoing. Celestica Inc. has an ethics hotline as well as a web-based site where employees at the global elec- tronics manufacturer can confidentially report unethical, illegal, or unsafe activity.87 A few companies employ ethics
When William O’Rourke became Alcoa Russia’s first CEO, he knew that bribery was a serious problem in that country, so he made his position clear to staff: “We don’t condone it. We don’t participate in it. We are not going to do it. Period.” This ethical mandate was soon tested when local police stopped delivery of an expensive furnace and warned that delivery would resume only after Alcoa paid $25,000 to a government official. “My bonus was based in large part on making the planned investments happen on time,” says O’Rourke, adding that a few Alcoa executives in the United States implied that he should do whatever it takes to keep the work on schedule. “Nonetheless, I stood my ground.” The new furnace arrived three days later without any bribery payment. More than 18 months passed before the bribery attempts stopped.90
mcs62589_ch02_030-061.indd Page 51 08/11/13 4:51 PM f-500 mcs62589_ch02_030-061.indd Page 51 08/11/13 4:51 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
52 Part Two Individual Behavior and Processes
ombudspersons who receive information confidentially from employees and proactively investigate possible wrongdoing. Ethics audits are also conducted in some organizations but are more common for evaluation of corporate social responsibility practices.88
Hotlines, audits, and related activities improve ethical conduct to some extent, but the most powerful foundation is a set of shared values that reinforces ethical conduct. “If you don’t have a culture of ethical decision making to begin with, all the controls and compli- ance regulations you care to deploy won’t necessarily prevent ethical misconduct,” warns a senior executive at British telecommunications giant Vodafone. This culture is supported by the ethical conduct and vigilance of corporate leaders. By acting with the highest standards of moral conduct, leaders not only gain support and trust from followers; they role-model the ethical standards that employees are more likely to follow.89
Values Across Cultures An Australian manager had an unusual experience soon after Infosys, the technology giant headquartered in India, acquired the Australian firm where the manager worked. The man- ager met with a project team from India, where he described the project and then suggested that the team share ideas about how to successfully complete the project. “They didn’t know what he meant,” says an Infosys executive familiar with the incident. “Then one of the peo- ple just said: ‘We were wondering when you are going to tell us what the plan was.’”91
This incident illustrates the fact that expectations and values differ around the world. The team from India assumed the manager would make the decisions without their involve- ment, whereas the Australian manager was more comfortable with an egalitarian relation- ship where everyone contributes to the project plan. Over the next few pages, we introduce five values that have cross-cultural significance: individualism, collectivism, power distance, uncertainty avoidance, and achievement-nurturing orientation. Exhibit 2.7 summarizes these values and lists countries that have high, medium, or low emphasis on these values.
LO 2-6
individualism A cross-cultural value describing the degree to which people in a culture emphasize independence and personal uniqueness.
collectivism A cross-cultural value describing the degree to which people in a culture emphasize duty to groups to which they belong and to group harmony.
How much do you value individualism and collectivism? Visit connect. mcgrawhill.com to estimate your score on these two values, as well as learn about the topic of cross-cultural values.
INDIVIDUALISM AND COLLECTIVISM Two seemingly inseparable cross-cultural values are individualism and collectivism. Individ- ualism is the extent to which we value independence and personal uniqueness. Highly indi- vidualist people value personal freedom, self-sufficiency, control over their own lives, and appreciation of the unique qualities that distinguish them from others. Americans, Chileans, Canadians, and South Africans generally exhibit high individualism, whereas Taiwan and Venezuela are countries with low individualism.92 Collectivism is the extent to which we value our duty to groups to which we belong and to group harmony. Highly collectivist people define themselves by their group memberships, emphasize their personal connection
to others in their in-groups, and value the goals and well-being of people within those groups.93 Low collectiv- ism countries include the United States, Japan, and Ger- many, whereas Israelis and Taiwanese have relatively high collectivism.
Contrary to popular belief, individualism is not the op- posite of collectivism. In fact, the two concepts are typi- cally uncorrelated.94 For example, cultures that highly
mcs62589_ch02_030-061.indd Page 52 08/11/13 8:11 PM f-500 mcs62589_ch02_030-061.indd Page 52 08/11/13 8:11 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Chapter Two Individual Behavior, Personality, and Values 53
VALUE SAMPLE COUNTRIES REPRESENTATIVE BELIEFS/BEHAVIORS IN “HIGH” CULTURES
Sources: Individualism and collectivism descriptions and results are from the meta-analysis reported in D. Oyserman, H. M. Coon, and M. Kemmelmeier, “Rethinking Individualism and Collectivism: Evaluation of Theoretical Assumptions and Meta-Analyses,” Psychological Bulletin, 128 (2002), pp. 3–72. The other information is from G. Hofstede, Culture’s Consequences, 2nd ed. (Thousand Oaks, CA: Sage, 2001).
EXHIBIT 2.7 Five Cross-Cultural Values
value duty to one’s group do not necessarily give a low priority to personal freedom and uniqueness. Generally, people across all cultures define themselves by both their uniqueness and their relationship to others. It is an inherent characteristic of everyone’s self-concept, which we discuss in the next chapter. Some cultures clearly emphasize uniqueness or group obligations more than the other, but both have a place in a person’s values and self-concept.
Also note that people in Japan have relatively low collectivism. This is contrary to many cross-cultural books, which claim that Japan is one of the most collectivist countries on the planet! There are several explanations for the historical misinterpretation, ranging from problems defining and measuring collectivism to erroneous reporting of early cross-cultural research. Whatever the reasons, studies consistently report that people in Japan tend to have relatively low collectivism and moderate individualism (as indicated in Exhibit 2.7).95
power distance A cross-cultural value describing the degree to which people in a culture accept unequal distribution of power in a society.
What is your level of power distance? Visit connect.mcgrawhill. com to estimate your score on this cross-cultural value.
POWER DISTANCE Power distance refers to the extent to which people accept unequal distribution of power in a society.96 Those with high power distance accept and value unequal power. They value obedience to authority and are comfortable receiving commands from their superiors without consultation or debate. They also prefer to resolve differences through formal proce- dures rather than directly. In contrast, people with low power distance expect relatively equal power sharing. They view the relationship with their boss as one of interdependence, not
Individualism
Collectivism
Power Distance
Uncertainty Avoidance
Achievement Orientation
High: United States, Chile, Canada, South Africa Medium: Japan, Denmark Low: Taiwan, Venezuela
High: Israel, Taiwan Medium: India, Denmark Low: United States, Germany, Japan
High: India, Malaysia Medium: United States, Japan Low: Denmark, Israel
High: Belgium, Greece Medium: United States, Norway Low: Denmark, Singapore
High: Austria, Japan Medium: United States, Brazil Low: Sweden, Netherlands
Defines self more by one’s uniqueness; personal goals have priority; decisions have low consideration of effect on others; relationships are viewed as more instrumental and fluid.
Defines self more by one’s in-group membership; goals of self-sacrifice and harmony have priority; behavior regulated by in-group norms; in-group memberships are viewed as stable with a strong differentiation with out-groups.
Reluctant to disagree with or contradict the boss; managers are expected and preferred decision makers; perception of dependence (versus interdependence) with the boss.
Prefer predictable situations; value stable employment, strict laws, and low conflict; dislike deviations from normal behavior.
Focus on outcomes (versus relationships); decisions based on contribution (equity versus equality); low empathy or showing emotions (versus strong empathy and caring)
mcs62589_ch02_030-061.indd Page 53 08/11/13 8:18 PM f-500 mcs62589_ch02_030-061.indd Page 53 08/11/13 8:18 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
54 Part Two Individual Behavior and Processes
dependence; that is, they believe their boss is also dependent on them, so they expect power sharing and consultation before decisions affecting them are made. People in India and Malaysia tend to have high power distance, whereas people in Denmark and Israel generally have low power distance. Americans collectively have medium-low power distance. Connections 2.1 illustrates high power distance in China, from the perspective of a Western (French national) employee.
UNCERTAINTY AVOIDANCE Uncertainty avoidance is the degree to which people tolerate ambiguity (low uncertainty avoidance) or feel threatened by ambiguity and uncertainty (high uncertainty avoidance). Employees with high uncertainty avoidance value structured situations in which rules of conduct and decision making are clearly documented. They usually prefer direct rather than indirect or ambiguous communications. Uncertainty avoidance tends to be high in Belgium and Greece and very high in Japan. It is generally low in Denmark and Singapore. Americans collectively have medium-low uncertainty avoidance.
ACHIEVEMENT-NURTURING ORIENTATION Achievement-nurturing orientation reflects a competitive versus cooperative view of relations with other people.98 People with a high achievement orientation value assertiveness, competi- tiveness, and materialism. They appreciate people who are tough, and they favor the acquisition of money and material goods. In contrast, people in nurturing-oriented cultures emphasize re- lationships and the well-being of others. They focus on human interaction and caring rather than competition and personal success. People in Sweden, Norway, and the Netherlands score very low on achievement orientation (i.e., they have a high nurturing orientation). In contrast, very high achievement orientation scores have been reported in Japan and Austria. The United States places a little above the middle of the range on achievement-nurturing orientation.
Working with High Power Distance in China97
As the only Westerner in a 50-employee start-up winery in China, Emilie Bourgois soon noticed that Chinese managers seemed to use their power more directly than did European or American bosses. “I was surprised to see that taking the initiative most of the time was seen as rude and as a failure to respect the executives’ authority,” says Bourgois, a public rela- tions professional from Bordeaux, France. “At work, everyone had to perform well in their own tasks, but permission was required for anything other than what was expected.” This high power distance was also apparent in how Chi- nese managers interacted with staff. “Western-style bosses tend to develop a closer relationship with employees,” Bour- gois suggests. “The hierarchy is much more clearly divided in Chinese-dominant companies than it is in foreign ones.” Bourgois worked well with her colleagues at the Chinese winery, but she acknowledges that “beyond that, there is still an important cultural gap.” She is now employed in the Beijing office of executive recruitment firm Antal International, where cultural differences seem to be less pronounced because the company has team building events to improve bonding and mutual understanding.
global connections 2.1
Emilie Bourgois, second from right with coworkers at Antal International in Beijing, discovered in an earlier job that Chinese-dominant companies have higher power distance compared with most Western firms.
mcs62589_ch02_030-061.indd Page 54 08/11/13 4:51 PM f-500 mcs62589_ch02_030-061.indd Page 54 08/11/13 4:51 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Chapter Two Individual Behavior, Personality, and Values 55
CAVEATS ABOUT CROSS-CULTURAL KNOWLEDGE Cross-cultural organizational research has gained considerable attention over the past two de- cades, likely due to increased globalization and cultural diversity within organizations. Our knowledge of cross-cultural dynamics has blossomed, and many of these findings will be dis- cussed throughout this book, particularly regarding leadership, conflict handling, and influence tactics. However, we also need to raise a few warning flags about cross-cultural knowledge. One problem is that too many studies have relied on small, convenient samples (such as students attending one university) to represent an entire culture.99 The result is that many cross-cultural studies draw conclusions that might not generalize to the cultures they intended to represent.
A second problem is that cross-cultural studies often assume that each country has one culture.100 In reality, many countries (including the United States) have become culturally diverse. As more countries embrace globalization and multiculturalism, it becomes even less appropriate to assume that an entire country has one unified culture.
A third concern is that cross-cultural research and writing continue to rely on a major study conducted almost four decades ago of 116,000 IBM employees across dozens of coun- tries. That study helped ignite subsequent cross-cultural research, but its findings are be- coming out of date as values in some cultures have shifted over the years. For example, value systems seem to be converging across Asia as people in these countries interact more fre- quently with one another and adopt standardized business practices.101 At least one recent review has recommended that future studies should no longer rely on the IBM study to benchmark values of a particular culture.102
CULTURAL DIVERSITY WITHIN THE UNITED STATES The United States is widely recognized for its cultural diversity. But even Americans may be surprised to know the degree of deep-level diversity across this country.103 One form of deep-level diversity is the different cultural values across ethnic groups. A major review of past studies reported that, on average, African Americans have significantly higher individu- alism than European and Hispanic Americans, whereas Asian Americans have the lowest individualism among these demographic groups.104
Americans also differ from each other across regions. Using social indicators (percentage living alone, self-employed, households inhabited with grandchildren, etc.) rather than sur- veys, one study found that collectivism is highest across the Southern states, California, and Hawaii; it is lowest among residents in the Mountain, Northwest, and Great Plains states.105 Other studies report that regions vary in personality profiles. The New England, Middle Atlantic, and Pacific regions have high openness to experience, whereas people living in the Great Plains, Midwest, and Southeastern states have the lowest scores. Neuroticism scores are highest in the Northeast and Southeast United States and lowest in the Midwest and West.106 There is also evidence that Americans have fairly accurate stereotypes of these regional differences.107
Why do Americans vary in their values and personalities across regions?108 One ex- planation is that regional institutions—such as local governments, educational systems, and dominant religious groups—control socialization practices and thereby reinforce personal values more than do national institutions. A related argument is that a person’s
values are influenced somewhat by the physical environ- ment (flat versus mountainous), climatic conditions (temperate versus tropical), and socio-economic condi- tions (low income versus relatively wealthy). A third ex- planation is that people migrate to places that they believe are more consistent with their values and self- views. Someone raised in the Midwest, for example, might be more motivated to move to California if his or her values emphasize discovery and change rather than tradition and dedication.
uncertainty avoidance A cross-cultural value describing the degree to which people in a culture tolerate ambiguity (low uncertainty avoidance) or feel threatened by ambiguity and uncertainty (high uncertainty avoidance).
achievement-nurturing orientation A cross-cultural value describing the degree to which people in a culture emphasize competitive versus cooperative relations with other people.
mcs62589_ch02_030-061.indd Page 55 08/11/13 4:51 PM f-500 mcs62589_ch02_030-061.indd Page 55 08/11/13 4:51 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
56
chapter summary
ability, p. 33 achievement-nurturing orientation, p. 54 collectivism, p. 52 conscientiousness, p. 40 counterproductive work behaviors (CWBs), p. 37 extraversion, p. 41
five-factor model (FFM), p. 40 individualism, p. 52 mindfulness, p. 50 moral intensity, p. 49 moral sensitivity, p. 50 motivation, p. 33 Myers-Briggs Type Indicator (MBTI), p. 42
neuroticism, p. 40 organizational citizenship behaviors (OCBs), p. 36 personality, p. 39 power distance, p. 53 presenteeism, p. 38 role perceptions, p. 34 uncertainty avoidance, p. 54
key terms
2-1 Describe the four factors that directly influence indi- vidual behavior and performance.
Four variables—motivation, ability, role perceptions, and situa- tional factors—which are represented by the acronym MARS, directly influence individual behavior and performance. Motiva- tion represents the forces within a person that affect his or her direction, intensity, and persistence of voluntary behavior; abil- ity includes both the natural aptitudes and the learned capabili- ties required to successfully complete a task; role perceptions are the extent to which people understand the job duties (roles) as- signed to them or expected of them; and situational factors in- clude conditions beyond the employee’s immediate control that constrain or facilitate behavior and performance.
2-2 Summarize the five types of individual behavior in organizations.
There are five main types of workplace behavior. Task perfor- mance refers to goal-directed behaviors under the individual’s con- trol that support organizational objectives. Organizational citizenship behaviors consist of various forms of cooperation and helpfulness to others that support the organization’s social and psychological context. Counterproductive work behaviors are vol- untary behaviors that have the potential to directly or indirectly harm the organization. Joining and staying with the organization refers to agreeing to become an organizational member and re- maining with the organization. Maintaining work attendance in- cludes minimizing absenteeism when capable of working and avoiding scheduled work when not fit (i.e., low presenteeism).
2-3 Describe personality and discuss how the “Big Five” personality dimensions and four MBTI types relate to individual behavior in organizations.
Personality is the relatively enduring pattern of thoughts, emo- tions, and behaviors that characterize a person, along with the psychological processes behind those characteristics. Personality traits are broad concepts about people that allow us to label and understand individual differences. Personality is developed through hereditary origins (nature) as well as socialization (nur- ture). The “Big Five” personality dimensions include conscien- tiousness, agreeableness, neuroticism, openness to experience, and extroversion. Conscientiousness and emotional stability (low neuroticism) predict individual performance in most job groups. Extraversion is associated with performance in sales and management jobs, whereas agreeableness is associated with per- formance in jobs requiring cooperation, and openness to experi- ence is associated with performance in creative jobs.
Based on Jungian personality theory, the Myers-Briggs Type Indicator (MBTI) identifies competing orientations for getting energy (extraversion vs. introversion), perceiving information (sensing vs. intuiting), processing information and making deci- sions (thinking vs. feeling), and orienting to the external world (judging vs. perceiving). The MBTI improves self-awareness for career development and mutual understanding but is more pop- ular than valid.
2-4 Summarize Schwartz’s model of individual values and discuss the conditions in which values influence behavior.
Values are stable, evaluative beliefs that guide our preferences for outcomes or courses of action in a variety of situations. Com- pared to personality traits, values are evaluative (rather than de- scriptive), more likely to conflict, and formed more from socialization than heredity. Schwartz’s model organizes 57 values into a circumplex of 10 dimensions along two bipolar dimen- sions: openness to change to conservation and self-enhancement to self-transcendence. Values influence behavior when the situa- tion facilitates that connection and when we actively think about them and understand their relevance to the situation. Values con- gruence refers to how similar a person’s values hierarchy is to the values hierarchy of another source (organization, person, etc.).
2-5 Describe three ethical principles and discuss three factors that influence ethical behavior.
Ethics refers to the study of moral principles or values that deter- mine whether actions are right or wrong and outcomes are good or bad. Three ethical principles are utilitarianism, individual rights, and distributive justice. Ethical behavior is influenced by the de- gree to which an issue demands the application of ethical principles (moral intensity), the individual’s ability to recognize the presence and relative importance of an ethical issue (moral sensitivity), and situational forces. Ethical conduct at work is supported by codes of ethical conduct, mechanisms for communicating ethical violations, the organization’s culture, and the leader’s behavior.
2-6 Describe five values commonly studied across cultures. Five values often studied across cultures are individualism (valu- ing independence and personal uniqueness); collectivism (valuing duty to in-groups and group harmony); power distance (valuing unequal distribution of power); uncertainty avoidance (tolerat- ing or feeling threatened by ambiguity and uncertainty); and achievement-nurturing orientation (valuing competition vs. cooperation).
mcs62589_ch02_030-061.indd Page 56 08/11/13 4:51 PM f-500 mcs62589_ch02_030-061.indd Page 56 08/11/13 4:51 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
57
critical thinking questions
CASE STUDY: PUSHING PAPERS CAN BE FUN A large city government was putting on a number of seminars for managers of various departments throughout the city. At one of these sessions, the topic discussed was motivation—how we can get public servants motivated to do a good job. The plight of a police captain became the central focus of the discussion:
I’ve got a real problem with my officers. They come on the force as young, inexperienced rookies, and we send them out on the street, either in cars or on a beat. They seem to like the contact they have with the public, the action involved in crime prevention, and the apprehension of criminals. They also like helping people out at fires, accidents, and other emergencies.
The problem occurs when they get back to the station. They hate to do the paperwork, and because they dislike it, the job is frequently put off or done inadequately. This lack of attention hurts us later on when we get to court. We need clear, factual reports. They must be highly detailed and un- ambiguous. As soon as one part of a report is shown to be inadequate or incorrect, the rest of the report is suspect. Poor reporting probably causes us to lose more cases than any other factor.
I just don’t know how to motivate them to do a better job. We’re in a budget crunch and I have absolutely no financial re- wards at my disposal. In fact, we’ll probably have to lay some people off in the near future. It’s hard for me to make the job interesting and challenging because it isn’t—it’s boring, routine paperwork, and there isn’t much you can do about it.
Finally, I can’t say to them that their promotions will hinge on the excellence of their paperwork. First of all, they know it’s not
true. If their performance is adequate, most are more likely to get promoted just by staying on the force a certain number of years than for some specific outstanding act. Second, they were trained to do the job they do out in the streets, not to fill out forms. All through their career it is the arrests and interventions that get noticed.
Some people have suggested a number of things, like using conviction records as a performance criterion. However, we know that’s not fair—too many other things are involved. Bad paperwork increases the chance that you lose in court, but good paperwork doesn’t necessarily mean you’ll win. We tried setting up team competitions based upon the excellence of the reports, but the officers caught on to that pretty quickly. No one was getting any type of reward for winning the competi- tion, and they figured why should they bust a gut when there was no payoff.
I just don’t know what to do.
Discussion Questions 1. What performance problems is the captain trying to
correct? 2. Use the MARS model of individual behavior and perfor-
mance to diagnose the possible causes of the unaccept- able behavior.
3. Has the captain considered all possible solutions to the problem? If not, what else might be done?
Source: T. R. Mitchell and J. R. Larson, Jr., People in Organizations, 3rd ed. (New York: McGraw-Hill, 1987), p. 184. Used with permission.
1. A federal government department has high levels of absentee- ism among the office staff. The head of office administration argues that employees are misusing the company’s sick leave benefits. However, some of the mostly female staff members have explained that family responsibilities interfere with work. Using the MARS model, as well as your knowledge of absen- teeism behavior, discuss some of the possible reasons for ab- senteeism here and how it might be reduced.
2. It has been said that all employees are motivated. Do you agree with this statement?
3. Studies report that heredity has a strong influence on an in- dividual’s personality. What are the implications of this in- fluence in organizational settings?
4. All candidates applying for a management trainee position are given a personality test that measures the five dimensions in the five-factor model. Which personality traits would you consider most important for this type of job? Explain your answer.
5. Compare and contrast personality with personal values, and identify values categories in Schwartz’s values circumplex that likely relate to one or more personality dimensions in the five-factor personality model.
6. This chapter discussed values congruence mostly in the context of an employee’s personal values versus the organi- zation’s values. But values congruence also relates to the juxtaposition of other pairs of value systems. Explain how values congruence is relevant with respect to organiza- tional versus professional values (i.e., values of a profes- sional occupation, such as physician, accountant, pharmacist).
7. “All decisions are ethical decisions.” Comment on this state- ment, particularly by referring to the concepts of moral in- tensity and moral sensitivity.
8. The organization for which you have been working for five years is suffering from a global recession. In response, it changes your compensation structure. Discuss the role of moral intensity, moral sensitivity, and situational influences in this context.
9. People in a particular South American country have high power distance and high collectivism. What does this mean, and what are the implications of this information when you (a senior executive) visit employees working for your com- pany in that country?
mcs62589_ch02_030-061.indd Page 57 08/11/13 8:36 PM f-500 mcs62589_ch02_030-061.indd Page 57 08/11/13 8:36 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
CLASS EXERCISE: TEST YOUR KNOWLEDGE OF PERSONALITY PURPOSE This exercise is designed to help you think about and understand the effects of the Big Five personality dimensions on individual preferences and outcomes.
INSTRUCTIONS (LARGE CLASS) In the following text are several questions relating to the Big Five personality dimensions and various preferences or outcomes. Answer each of these questions, relying on your personal experience or best guess. Later, your instructor will show you answers based on scholarly results. You will not be graded on this ex- ercise. Instead, it illustrates the many ways that personality influences human behavior and preferences.
INSTRUCTIONS (SMALL CLASS)
1. The instructor will organize students into teams. Members of each team work together to answer each
of the questions in the following text relating to the Big Five per sonality dimensions and various prefer- ences or outcomes.
2. The instructor will reveal the answers based on scholarly results. (Note: The instructor might create a competition to see which team has the most answers correct.)
PERSONALITY AND PREFERENCES QUES- TIONS You have been asked to select job applicants for a nine-month over-winter assignment working in an Ant- arctic research station with a dozen other people. Assum- ing that all candidates have equal skills, experience, and health, identify which level of each personality dimension would be best for people working in these remote, con- fined, and isolated conditions.
Listed below are several jobs. Please check no more than two personality dimensions that you believe are positively
associated with preferences for each occupation.
PERSONALITY DIMENSION LOW BELOW AVERAGE AVERAGE ABOVE AVERAGE HIGH
Conscientiousness
Agreeableness
Neuroticism
Openness to experience
Extraversion
5858
OPENNESS TO JOB EXTROVERSION CONSCIENTIOUSNESS AGREEABLENESS NEUROTICISM EXPERIENCE
Budget analyst
Corporate executive
Engineer
Journalist
Life insurance agent
Nurse
Physician
Production supervisor
Public relations director
Research analyst
Schoolteacher
Sculptor
mcs62589_ch02_030-061.indd Page 58 22/11/13 3:54 PM f-500 mcs62589_ch02_030-061.indd Page 58 22/11/13 3:54 PM f-500 ~/Desktop/Tempwork/%20November/22-11-13/MH02010:McShane:204~/Desktop/Tempwork/%20November/22-11-13/MH02010:McShane:204
59
TEAM EXERCISE: ETHICS DILEMMA VIGNETTES PURPOSE This exercise is designed to make you aware of the ethical dilemmas people face in various business situa- tions, as well as the competing principles and values that op- erate in these situations.
INSTRUCTIONS (SMALL CLASS) The instructor will form teams of four or five students. Team members will read each of the following cases and discuss the extent to which the company’s action in each case was ethical. Teams should be prepared to justify their evaluation using ethics principles and the perceived moral intensity of each incident.
INSTRUCTIONS (LARGE CLASS) Working alone, read each of the following cases and determine the extent to which the company’s action in each case was ethical. The
instructor will use a show of hands to determine the extent to which students believe the case represents an ethical dilemma (high or low moral intensity) and the extent to which the main people or company in each incident acted ethically.
Case One A large European bank requires all employees to open a bank account with that bank. The bank deposits employee paychecks to those accounts. The bank explains that this is a formal policy, which all employees agree to at the time of hire. Furthermore, failure to have an account with the bank shows disloyalty, which could limit the employee’s career advancement opportunities with the bank. Until recently, the bank has reluctantly agreed to deposit paychecks to accounts at other banks for a small percentage of employees. Now, bank executives want to reinforce the
CLASS EXERCISE: PERSONAL VALUES EXERCISE PURPOSE This exercise is designed to help you under- stand Schwartz’s values model and relate its elements to your personal values and the values held by others in your class.
INSTRUCTIONS Your instructor will distribute a sheet with 44 words and phrases representing different personal values. Read these words and phrases carefully, then follow these steps: 1. Pick THREE (3) of these words/phrases that represent
the MOST important values to you personally. Print each of the three values on the three yellow-colored sticky notes provided by your instructor (i.e., print one value on each note).
2. From the remaining 41 values on the sheet provided by your instructor, pick THREE (3) of these that represent the LEAST important values to you personally. Print each of the three values on three sticky notes of the second color provided by your instructor (i.e., print one value on each note).
3. The instructor will advise you what to do with the six sticky notes on which you wrote your most and least important values.
4. The class will engage in a debriefing, using the informa- tion created in the third step of this activity.
On which two personality dimensions should team mem- bers have the highest scores, on average, to produce the best team performance? u Conscientiousness u Agreeableness u Neuroticism u Openness to experience u Extroversion
Rank order (1 5 highest, 5 5 lowest) the Big Five personality dimensions in terms of how much you think they predict a person’s degree of life satisfaction. (Note: Per- sonality dimensions are ranked by their absolute effect, so ignore the negative or positive direction of association.) Conscientiousness Agreeableness
Neuroticism Openness to experience Extroversion
Which two Big Five personality dimensions are positively as- sociated with enjoyment of workplace humor?
u Conscientiousness u Agreeableness u Neuroticism u Openness to experience u Extroversion
mcs62589_ch02_030-061.indd Page 59 08/11/13 4:51 PM f-500 mcs62589_ch02_030-061.indd Page 59 08/11/13 4:51 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
60
policy. They announced that employees have three months to open an account with the bank or face disciplinary action.
Case Two A 16-year-old hired as an office administrator at a small import services company started posting her thoughts about the job on her Facebook site. After her first day, she wrote: “first day at work. omg!! So dull!!” Two days later, she complained “all i do is shred holepunch n scan paper!!! omg!” Two weeks later she added “im so totally bord!!!” These comments were intermixed with the other usual banter about her life. Her Facebook site did not mention the name of the company where she worked. Three weeks after being hired, the employee was called into the owner’s office, where he fired her for the comments on Facebook, then had her escorted from the building. The owner argues that these comments put the company in a bad light, and her “display of disrespect and dissatisfaction undermined the relationship and made it untenable.”
Case Three Computer printer manufacturers usually sell printers at a low margin over cost and generate much more income from subsequent sales of the high-margin ink cartridges required for each printer. One global printer manufacturer now designs its printers so that they work only with ink cartridges made in the same region. Ink cartridges purchased in the United States will not work with the same printer model sold in Europe, for example. This “region coding” of ink cartridges does not improve performance. Rather, it prevents consumers and grey marketers from buying the product at a lower price in another region. The company says this policy allows it to maintain stable prices within a region rather than continually changing prices due to currency fluctuations.
Case Four Judy Price is a popular talk show radio personality and opinionated commentator on the morning
phone-in show of a popular radio station in a large U.S. city. Price is married to John Tremble, an attorney who was recently elected mayor of the city, even though he had no previous experience in public office. The radio station’s Board of Directors is very concerned that the station’s perceived objectivity will be compromised if Price remains on air as a commentator and talk show host while her husband holds such a public position. For example, the radio station manager believes that Price gave minimal attention to an incident in which environmental groups criticized the city for its slow progress on recycling. Price has denied that her views are biased and argued that the incident didn’t merit as much attention as other issues that particular week. To ease the Board’s concerns, the station manager has transferred Price to an hourly news reporting position, where most of the script is written by others. Although technically a lower position, Price’s total salary package remains the same. Price is now seeking professional advice to determine whether the radio station’s action represents a form of discrimination on the basis of marital status.
Case Five For the past few years, the design department of a small (40-employee) company has been using a particular software program, but the three employees who use the software have been complaining for more than a year that the software is out of date and is slowing down their performance. The department agreed to switch to a competing software program, costing several thousand dollars. However, the next version won’t be released for six months, and buying the current version will not allow much discount on the next version. The company has put in advance orders for the next version. Meanwhile, one employee was able to get a copy of the current version of the software from a friend in the industry. The company has allowed the three employees to use this current version of the software, even though they did not pay for it.
SELF-ASSESSMENT
ARE YOU INTROVERTED OR EXTROVERTED? PURPOSE This self-assessment is designed to help you es- timate the extent to which you are introverted or extroverted.
INSTRUCTIONS The statements in the scale on the next page refer to personal characteristics that might or might not be characteristic of you. Mark the box indicating the extent
to which the statement accurately or inaccurately describes you. Then, use the scoring key in Appendix B at the end of this book to calculate your results. This exercise should be completed alone so that you can assess yourself honestly without concerns of social comparison. Class discussion will focus on the meaning and implications of extroversion and introversion in organizations.
mcs62589_ch02_030-061.indd Page 60 08/11/13 8:25 PM f-500 mcs62589_ch02_030-061.indd Page 60 08/11/13 8:25 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
61
After reading this chapter, if you feel that you need additional tips on managing your studies, see www. mhhe.com/mcshane7e for more in-depth information and interactivities that correspond to this chapter.
IPIP Introversion–Extroversion Scale
HOW ACCURATELY DOES EACH OF THE STATEMENTS LISTED VERY ACCURATE MODERATELY NEITHER ACCURATE MODERATELY VERY INACCURATE BELOW DESCRIBE YOU? DESCRIPTION OF ME ACCURATE NOR INACCURATE INACCURATE DESCRIPTION OF ME
Source: Adapted from instruments described and/or presented in L. R. Goldberg, J. A. Johnson, H. W. Eber, R. Hogan, M. C. Ashton, C. R. Cloninger, and H. C. Gough, “The International Personality Item Pool and the Future of Public-Domain Personality Measures,” Journal of Research in Personality 40 (2006), pp. 84–96.
1. I feel comfortable around people.
2. I make friends easily.
3. I keep in the background.
4. I don’t talk a lot.
5. I would describe my experiences as somewhat dull.
6. I know how to captivate people.
7. I don’t like to draw attention to myself.
8. I am the life of the party.
9. I am skilled in handling social situations.
10. I have little to say.
mcs62589_ch02_030-061.indd Page 61 22/11/13 3:54 PM f-500 mcs62589_ch02_030-061.indd Page 61 22/11/13 3:54 PM f-500 ~/Desktop/Tempwork/%20November/22-11-13/MH02010:McShane:204~/Desktop/Tempwork/%20November/22-11-13/MH02010:McShane:204
3 Perceiving Ourselves and Others in Organizations
le a
rn in
g o
b je
ct iv
es
62
chapter
After reading this chapter, you should be able to:
3-1 Describe the elements of self-concept and explain how each affects an individual’s behavior and well-being.
3-2 Outline the perceptual process and discuss the effects of categorical thinking and mental models in that process.
3-3 Discuss how stereotyping, attribution, self-fulfilling prophecy, halo, false-consensus, primacy, and recency effects influence the perceptual process.
3-4 Discuss three ways to improve perceptions, with specific applications to organizational situations.
3-5 Outline the main features of a global mindset and justify its usefulness to employees and organizations.
mcs62589_ch03_062-091.indd Page 62 11/11/13 7:44 PM user-f-w-198 mcs62589_ch03_062-091.indd Page 62 11/11/13 7:44 PM user-f-w-198 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
limbing 70-foot-tall fire truck ladders isn’t everyone’s idea of a good time, but Emily MacDonald wants to climb them more often. The 17-year-old’s father and both grandfathers were firefighters, and she wants to join in that career tradition. “I want to be the first female firefighter in the family,” says MacDonald. MacDonald participated in Camp FFit, a week-long program in Ottawa,
Canada, where two dozen teenage girls scaled fire truck ladders, hooked up fire hoses,
carried 70-pound packs, forced entry into buildings, and learned other firefighting skills.
Camp FFit and similar programs around North America are aimed at helping
young women develop their self-concept as firefighters. “We’re still battling with the
traditional interpretation of what a firefighter is, what that visual image is,” explains
Cheryl Horvath, Division Chief at the Northwest Fire District in Tucson, Arizona.
Horvath co-founded Camp Fury, a program similar to Camp FFit. “We want young
girls to see that this is something they can grow up to become,” she says.
These programs also help young women strengthen their self-esteem and
self-efficacy, no matter what job they choose. “We want all of the girls to walk away
with a sense that they can do anything they put their minds to, regardless of what
the job is,” says Horvath. Alexandra Gaudes, who attended Ottawa’s Camp FFit a few
years ago, recalls how a male retorted, “but you are a girl,” after she expressed her
desire to be a firefighter. “I just smiled and asked which century he was from,” says
Gaudes. “Standing up for myself to him was when I knew that this camp had really
changed me.”
Unfortunately, many female firefighters still experience bias and discrimination on
the job. Consider this recent example: A fire captain in Calgary, Canada, was
temporarily assigned to another fire station, which employed three of the city’s
30 female firefighters. (Calgary employs about 1,300 firefighters at 40 fire stations.)
While riding in one of the trucks, the captain asked: “How did you guys get stuck
with so many (expletives) at your hall?” He then repeated the obscenity against
women when asked to clarify. Discovering that a female firefighter was on board, the
captain awkwardly apologized: “I’m sorry, I didn’t realize you were on the truck.”
Initially fired for the remark, the captain was reinstated with a brief demotion
l g o tt
C
63
Emily MacDonald (shown) attended Camp FFit in Ottawa, Canada, a program that helps teenage girls develop a self-concept as firefighters, develop their self-esteem, and dispel the occupation’s macho stereotype.
mcs62589_ch03_062-091.indd Page 63 11/11/13 7:44 PM user-f-w-198 mcs62589_ch03_062-091.indd Page 63 11/11/13 7:44 PM user-f-w-198 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
64 Part Two Individual Behavior and Processes
self-concept An individual’s self-beliefs and self-evaluations.
Self-Concept: How We Perceive Ourselves Why are there so few female firefighters in the United States and most other countries? As the opening case study to this chapter suggests, many women do not see themselves as firefighters and have doubts about doing the job. This self-concept incompatibility is further reinforced by gendered perceptions of firefighters held by family, friends, and the media. “We don’t have a lot of parents telling their daughters ‘hey honey, when you grow up, you can be a firefighter,’” admits Karen DuPont, Assistant Chief of the Houston Fire Department.2
Self-concept refers to an individual’s self-beliefs and self-evaluations.3 It is the “Who am I?” and “How do I feel about myself?” that people ask themselves and that guide their deci- sions and actions. Whether contemplating a career as a firefighter or a financial analyst, we compare our images of that job with our current (perceived self ) and desired (ideal self ) images of ourselves. We also evaluate our current and desired competencies to determine whether there is a good fit with that job. Recent studies suggest that we have an individual self (our personal traits), relational self (interpersonal relations), and collective self (our membership in identifiable social groups).4
SELF-CONCEPT COMPLEXITY, CONSISTENCY, AND CLARITY An individual’s self-concept can be described by three characteristics: complexity, consis- tency, and clarity (see Exhibit 3.1). Complexity refers to the number of distinct and import- ant roles or identities that people perceive about themselves.5 Everyone has some degree of complexity, because they see themselves in different roles at various times (student, friend, daughter, sports fan…). But complexity isn’t just the number of selves that define who we are; it is also the separation of those selves. A self-concept has low complexity when the in- dividual’s most important identities are highly interconnected, such as when they are all work related (e.g., manager, engineer, family income earner).
A second characteristic of an individual’s self-concept is internal consistency. High internal consistency exists when most of the individual’s self-perceived roles require similar personality traits, values, and other attributes. Low consistency occurs when some
How much does work define your self-concept? Visit connect. mcgrawhill.com to assess your level of work centrality.
and suspension. However, all three female firefighters experienced such a backlash
over the captain’s discipline that one went on stress leave, another took unpaid
leave, and the third requested permanent transfer to another type of work.1
Firefighting services face two challenges in attracting and keeping women in this occupa- tion: (1) the self-concept women have about themselves as firefighters and (2) perceptions that others have about firefighters and of women in these roles. We discuss both of these related topics in this chapter. First, we examine how people perceive themselves—their self-concept—and how that self-perception affects their decisions and behavior. Next, we focus on perceptions in organizational settings, beginning with how we select, organize, and interpret information, then reviewing several specific perceptual processes such as stereotyp- ing, attribution, and self-fulfilling prophecy. We then identify potentially effective ways to improve perceptions. The final section of this chapter reviews the main elements of global mindset, a largely perceptual process valued in this increasingly globalized world.
LO 3-1
mcs62589_ch03_062-091.indd Page 64 11/11/13 7:44 PM user-f-w-198 mcs62589_ch03_062-091.indd Page 64 11/11/13 7:44 PM user-f-w-198 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Chapter Three Perceiving Ourselves and Others in Organizations 65
self- perceptions require personal characteristics that conflict with characteristics required for other aspects of self. Low self-concept consistency would exist if you see yourself as a very exacting engineer yet also as a cavalier and risk-oriented skier.
Clarity, the third characteristic of self-concept, is the degree to which you have a clear, con- fidently defined, and stable self-concept.7 Clarity occurs when we are confident about “who we are,” can describe our important identities to others, and provide the same description of our- selves across time. Self-concept clarity increases with the person’s age and the consistency of their multiple selves.8
Effects of Self-Concept Characteristics on Well-Being and Behavior Self-concept complexity, consistency, and clarity influence a person’s well-being, behavior, and performance. People tend to have better psychological well-being when they have multi- ple selves (complexity) that are well established (clarity) and are similar to one another, as well
Self- verification
Self- evaluation
Social self
Self- enhancement
Self-Concept • Complexity • Consistency • Clarity
EXHIBIT 3.1
Self-Concept Characteristics and Processes
Hélène Joy appeared on several popular television programs, but the lack of job security as an actor motivated her to join her mother’s real estate business. “It lasted a week,” Joy recalls of her short-lived real estate career. “I realized that acting is what I do, and who I am.” The experience helped Joy form a clearer self- concept, as well as a new determination to achieve her ideal self. “I guess I was never really committed till then, and once I did commit, I haven’t stopped working.” Today, Joy is a lead actor in the popular television series Murdoch Mysteries and has received several awards for her acting talent.6
mcs62589_ch03_062-091.indd Page 65 22/11/13 7:31 PM f-500 mcs62589_ch03_062-091.indd Page 65 22/11/13 7:31 PM f-500 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
66 Part Two Individual Behavior and Processes
as compatible with personal traits (consistency).9 Self-concept complexity protects our self- esteem when some roles are threatened or damaged. A complex self is rather like a ship with several compartments that can be sealed off from one another. If one compartment is dam- aged, the other compartments (selves) remain intact so the ship remains afloat. In contrast, people with low complexity, including those whose multiple selves are interconnected, suffer severe loss when they experience failure, because these events affect a large part of themselves.
People also tend to have better well-being when their multiple selves are in harmony with one another and with the individual’s personality and values (consistency).10 Some self- concept diversity helps people adapt, but too much variation causes internal tension and conflict. Finally, well-being tends to increase with self-concept clarity. People who are unsure of their self-views are more easily influenced by others, experience more stress when making decisions, and feel more threatened by social forces that undermine their self-confidence and self-esteem.11
Self-concept complexity, consistency, and clarity have more varied effects on behavior and performance.12 On the one hand, people who define themselves mainly by their work (i.e., low complexity) tend to have lower absenteeism and turnover. They also tend to have better performance due to their greater investment in skill development, longer hours, more concentration on work, and so forth. On the other hand, low complexity commonly results in higher stress and depression when the main self aspect is damaged or threatened, which further undermines individual performance.
Self-concept clarity tends to improve performance and is considered vital for leadership roles.13 Clarity also focuses personal energy so employees direct their effort more efficiently
toward their career objectives. Another benefit of high self-concept clarity is that people feel less threatened by interpersonal conflict, so they use more constructive problem-solving behaviors to resolve the conflict. However, those with very high clarity may have role inflexibility, such that they cannot adapt to changing job duties or en- vironmental conditions.
In addition to the three self-concept charac- teristics, Exhibit 3.1 illustrates four processes that shape self-concept and motivate a person’s decisions and behavior. Let’s look at each of these four “selves”: self-enhancement, self-verifi- cation, self-evaluation, and social self (social identity).
SELF-ENHANCEMENT A century ago, educational philosopher John Dewey said that “the deepest urge in human nature is the desire to be important.”14 Dewey recognized that people are inherently motivated to perceive themselves (and to be perceived by others) as competent, attractive, lucky, ethical, and important.15 This self- enhancement is observed in many ways. Individuals tend to rate themselves above average, believe that they have a better than average probability of suc- cess, and attribute their successes to personal motivation or ability while blaming the situation for their mistakes. People don’t see themselves
94% of university professors rated their teaching as above- average compared with others at their university. 62%
of recent college students said they have above-average leadership ability (only 41 percent of college students in 1966 claimed to be above average).
37% of Swedish student drivers overestimated their driving competence (13 percent underestimated their driving competence).
36.9% of consumers in a large U.S. survey panel overestimated their actual credit rating (only 4.6 percent underestimated their credit rating).
74% of investment fund managers said they were above average at their jobs.
70% of college students recently said they have above-average academic ability (64% of college students in 1966 said they were above average).
69% of U.S. federal government workers rated their performance as above average, compared with coworkers in their unit (only 1 percent rated their performance below average).
77% of Polish drivers rate themselves as more skillful than the average driver.
Self-Enhancement Makes Most of Us Above Average!17
Note: Some of these studies are not representative of the entire population. The survey of professor
teaching skills is not recent.
mcs62589_ch03_062-091.indd Page 66 11/11/13 7:44 PM user-f-w-198 mcs62589_ch03_062-091.indd Page 66 11/11/13 7:44 PM user-f-w-198 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Chapter Three Perceiving Ourselves and Others in Organizations 67
as above average in all circumstances, but this bias is apparent for conditions that are common rather than rare and that are important to them.16
Self-enhancement has both positive and negative consequences in organizational settings.18 On the positive side, individuals tend to experience better mental and physical health and adjustment when they amplify their self-concept. Overconfidence also generates a “can-do” attitude (which we discuss later) that motivates persistence in difficult or risky tasks. On the negative side, self-enhancement causes people to overestimate future returns in investment decisions, use less conservative accounting practices, and take longer to recognize their mistakes. Some research also suggests that self-enhancement is a factor in high accident rates among novice drivers. Generally, though, successful companies strive to help employees feel valued and integral members of the organization.
SELF-VERIFICATION Along with being motivated by self-enhancement, people are motivated to confirm and maintain their existing self-concept.19 This process, called self-verification, stabilizes an individual’s self-view, which provides an important anchor that guides his or her thoughts and actions. Employees actively communicate their self-concept so coworkers can provide feedback that reinforces the self-concept. For example, you might let coworkers know that you are a very organized person; later, they point out situations where you have indeed been very organized. Unlike self-enhancement, self-verification includes seeking feedback that is not necessarily flattering (e.g., I’m a numbers person, not a people person). Social scientists continue to debate whether and under what conditions people prefer information that sup- ports self-enhancement or self-verification.20 In other words, do we prefer compliments rather than an accurate critique about weaknesses that we readily acknowledge? The answer is likely an emotional tug-of-war; we enjoy compliments but less so if they are contrary to our self-view.
Self-verification has implications for organizational behavior.21 First, it affects the perceptual process because employees are more likely to remember information that is consistent with their self-concept and nonconsciously screen out information (particularly negative information) that seems inconsistent with it. Second, the clearer their self-concept, the less people will consciously accept feedback that contradicts that self-concept. Third, employees are motivated to interact with others who affirm their self-views, and this motivation affects how well they get along with their boss and team members. For instance, new employees are more satisfied and perform better when the socialization process allows them to affirm their authentic self—they can demonstrate and receive support for “who they are”— rather than when the socialization process mainly steers them into the company’s mold of an ideal employee.22
What is your level of general self-efficacy? Visit connect.mcgrawhill. com to assess yourself on this component of self-evaluation.
self-enhancement A person’s inherent motivation to have a positive self-concept (and to have others perceive him or her favorably), such as being competent, attractive, lucky, ethical, and important.
self-verification A person’s inherent motivation to confirm and maintain his/her existing self-concept.
SELF-EVALUATION Almost everyone strives to have a positive self-concept, but some people have a more positive evaluation of themselves than do others. This self-evaluation is mostly defined by three elements: self-esteem, self-efficacy, and locus of control.23
Self-Esteem Self-esteem—the extent to which people like, respect, and are satisfied with themselves—represents
mcs62589_ch03_062-091.indd Page 67 11/11/13 7:44 PM user-f-w-198 mcs62589_ch03_062-091.indd Page 67 11/11/13 7:44 PM user-f-w-198 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
68 Part Two Individual Behavior and Processes
a global self-evaluation. Some experts also believe that self-esteem is a person’s rating of his or her success at social inclusion. In other words, people have higher self-esteem when they believe they are connected to and accepted by others. People with high self-esteem are less influenced by others, tend to persist in spite of failure, and think more rationally. Role- specific self-esteem (e.g., a good student, a good driver, a good parent) predicts attitudes and behaviors about that role, whereas a person’s overall self-esteem predicts much more general attitudes and behaviors (e.g., satisfaction with self ).24
Self-Efficacy Self-efficacy refers to a person’s belief that he or she can successfully complete a task.25 Those with high self-efficacy have a “can-do” attitude. They believe they possess the energy (motivation), ability, clear expectations (role perceptions), and resources (situational factors) to perform the task. In other words, self-efficacy is an indi- vidual’s perception regarding the MARS model in a specific situation. Although origi- nally defined in terms of specific tasks, self-efficacy is also a general trait related to self-concept.26 General self-efficacy is a perception of one’s competence to perform across a variety of situations. People with higher general self-efficacy have a more positive over- all self-evaluation.
Locus of Control Locus of control is a person’s general beliefs about the amount of control he or she has over personal life events.27 Individuals with an internal locus of control believe their personal characteristics (i.e., motivation and abilities) mainly influence life’s outcomes. Those with an external locus of control believe events in their life are due mainly to fate, luck, or conditions in the external environment. Locus of control is a generalized belief, so people with an external locus can feel in control in familiar situations (such as performing common tasks). However, their underlying locus of control would be apparent in new situations in which control over events is uncertain.
People with a more internal locus of control have a more positive self-evaluation. They also tend to perform better in most employment situations, are more successful in their careers, earn more money, and are better suited for leadership positions. Internals are also more satisfied with their jobs, cope better in stressful situations, and are more motivated by performance-based reward systems.28 One worrisome observation is that locus of control among young people over the past four decades has shifted to more of an external than an internal locus of control.29
THE SOCIAL SELF Everyone has a self-concept that includes at least a few identities (manager, parent, golfer), and each identity is defined by a set of attributes. These attributes highlight both the person’s uniqueness (personal identity) or association with others (social identity).30
Personal identity (also known as internal self-concept) consists of attributes that make us unique and distinct from people in the social groups to which we have a connection. For instance, an unusual achievement that distinguishes you from other people typically becomes a personal identity characteristic. Personal identity refers to something about you as an individual, without refer- ence to a larger group.
Do you have an internal or external locus of control? Visit connect.mcgrawhill.com to estimate your locus of control focus.
self-efficacy A person’s belief that he or she has the ability, motivation, correct role perceptions, and favorable situation to complete a task successfully.
locus of control A person’s general belief about the amount of control he or she has over personal life events.
mcs62589_ch03_062-091.indd Page 68 11/11/13 7:44 PM user-f-w-198 mcs62589_ch03_062-091.indd Page 68 11/11/13 7:44 PM user-f-w-198 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Chapter Three Perceiving Ourselves and Others in Organizations 69
Boston Consulting Group employee
American citizen/resident
Contrasting GroupsSocial Identity
Employees at other firms
Citizens/residents of other countries
Graduates of other schools
University of Oregon graduate
U i i f
An Individual's Social Identity
EXHIBIT 3.2
Social Identity Theory Example
At the same time, human beings are social animals; they have an inherent drive to be as- sociated with others and to be recognized as part of social communities. This drive to belong is reflected in self-concept, because all individuals define themselves to some degree by their relationships.31 Social identity (also called external self-concept) is the central theme of social identity theory, which says that people define themselves by the groups to which they belong or have an emotional attachment. For instance, someone might have a social identity as an American, a graduate of the University of Oregon, and an employee at the Boston Consulting Group (see Exhibit 3.2).
Social identity is a complex combination of many memberships arranged in a hierarchy of importance. One factor determining importance is how easily you are identified as a member of the reference group, such as by your gender, age, and ethnicity. A second factor is your minority status in a group. It is difficult to ignore your gender in a class where most other students are the opposite gender, for example. In that context, gender tends to become a stronger defining feature of your social identity than it is in social settings where there are many people of the same gender.
The group’s status is another important social identity factor, because association with the group makes us feel better about ourselves (i.e., self-enhancement). Medical doctors usually define themselves by their profession because of its high status. Some people describe themselves by where they work (“I work at Google”) because their employer has a good reputation. Others never mention where they work because their employer is noted for poor relations with employees or has a poor reputation in the community.32
Everyone tries to balance her or his personal and social identities, but the priority for uniqueness (personal identities) versus relatedness (social identities) differs from one person to the next. People whose self-concepts are heavily defined by social rather than personal identities are more motivated to abide by team norms and more easily influenced by peer pressure. On the other hand, those who place more emphasis on personal identities speak out more frequently against the majority and are less motivated to follow the team’s wishes. Furthermore, expressing disagreement with others is a sign of distinctiveness and can help employees form a clearer self-concept, particularly when that disagreement is based on differences in personal values.33
SELF-CONCEPT AND ORGANIZATIONAL BEHAVIOR Self-concept has become a hot topic in the social sciences and is starting to bloom in organizational behavior research.34 As we noted throughout this section, self-concept is a factor in perceptual and decision processes and biases, employee motivation, team
social identity theory A theory stating that people define themselves by the groups to which they belong or have an emotional attachment.
mcs62589_ch03_062-091.indd Page 69 11/11/13 7:44 PM user-f-w-198 mcs62589_ch03_062-091.indd Page 69 11/11/13 7:44 PM user-f-w-198 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
70 Part Two Individual Behavior and Processes
dynamics, leadership development, employee stress, and several other OB topics. So, we will be referring to self-concept throughout this book, including later parts of this chapter.
Many organizational leaders are already well aware that supporting employee self-views can significantly improve performance and well-being. Employees are “hungry for [employers] to recognize who they are and what they can bring to the world,” explains Donna Gadient, a senior executive at R.W. Armstrong in Indianapolis. “The most important part of my job is to make sure people feel valued.”35 Executives at Intercontinental Hotels Group (IGH) also believe that employee motivation increases by acknowledging and supporting their self-concept. “Everything you do in the business must make [employees] feel like heroes and heroines and you must acknowledge the huge contribution they make,” suggests one IHG executive. “Everyone says they do this, but very few companies do.”36
Perceiving the World Around Us Although we spend considerable time perceiving ourselves, most of our perceptual energy is directed toward the outer world. Whether as a structural engineer, forensic accountant, or senior executive, we need to make sense of the world around us, including the conditions that challenge the accuracy of those perceptions. Perception is the process of receiving information about and making sense of the world around us. It entails determining which information to notice, how to categorize this information, and how to interpret it within the framework of our existing knowledge.
This perceptual process generally follows the steps shown in Exhibit 3.3. Perception begins when environmental stimuli are received through our senses. Most stimuli that bombard our senses are screened out; the rest are organized and interpreted. The process of
Visit connect.mcgrawhill.com for activities and test questions to help you learn about social perception, stereotyping, and related topics.
Perceptual organization and interpretation
Environmental Stimuli
Feeling Hearing Seeing
Selective attention and emotional marker response
Attitudes and behavior
Smelling Tasting
LO 3-2
EXHIBIT 3.3
Model of the Perceptual Process
mcs62589_ch03_062-091.indd Page 70 11/11/13 7:44 PM user-f-w-198 mcs62589_ch03_062-091.indd Page 70 11/11/13 7:44 PM user-f-w-198 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Chapter Three Perceiving Ourselves and Others in Organizations 71
attending to some information received by our senses and ignor- ing other information is called selective attention. Selective at- tention is influenced by characteristics of the person or object being perceived, particularly size, intensity, motion, repetition, and novelty. For example, a small, flashing red light on a nurse station console is immediately noticed because it is bright (inten- sity), flashing (motion), and a rare event (novelty), and it has sym- bolic meaning that a patient’s vital signs are failing. Notice that selective attention is also influenced by the context in which the target is perceived. The selective attention process is triggered by things or people who might be out of context, such as someone with a foreign accent in a setting where most people have an American accent.
Characteristics of the perceiver also influence selection attention, usually without the perceiver’s awareness.37 When in- formation is received through the senses, our brain quickly and nonconsciously assesses whether it is relevant or irrelevant to us and then attaches emotional markers (worry, happiness, boredom) to the retained information.38 Emotional markers help us store information in memory; those emotions are later reproduced when recalling the perceived information. The selective attention process is far from perfect, however. The Greek philosopher Plato acknowledged this imperfection long ago when he wrote that we see reality only as shadows reflecting against the rough wall of a cave.39
One selective attention bias is the effect of our assumptions and expectations about future events. You are more likely to notice a particular coworker’s e-mail among the daily bombardment of messages when you expect to receive that e-mail (even more so if it is a valuable message). Unfortunately, expectations and assumptions also cause us to screen out potentially important information. In one study, students were asked to watch a 30-second video clip in which several people passed around two basketballs. Students who were instructed just to watch the video clip easily noticed someone dressed in a gorilla suit walking among the players for nine seconds and stopping to thump his or her chest. But only half of the students who were asked to count the number of times one basketball was passed around noticed the intruding gorilla.40
Another selective attention problem, called confirmation bias, is the nonconscious ten- dency for people to screen out information that is contrary to their decisions, beliefs, values, and assumptions, whereas confirming information is more readily accepted through the perceptual process.41 This bias includes overweighting positive information, perceiving only positive infor- mation, and restricting cognitive attention to a favored hypothesis. When we make important decisions, such as investing in a costly project, for example, we tend to pay attention to informa- tion that is consistent with the success of that decision and to ignore contrary or seemingly irrel- evant information. In an exercise in which student pilots became unsure of their location, they tried to find their true location by relying on less reliable information that was consistent with
their assumptions than on more accurate information that was contrary to those as- sumptions. This faulty selec- tive attention also occurs when police detectives and other forensic experts form theories too early in an investigation.42
“It is a capital mistake to theorize before you have all the evidence,” warned the mythical detective Sherlock Holmes in A Study in Scarlet. “It biases the judgment.” Law enforcement agencies around the world try to follow Holmes’s advice. To reduce the risk of wrongful conviction, detectives avoid embracing any theories too early in the investigation. “We can’t succumb to tunnel vision or we could miss obvious signs in front of our face about what happened,” says Lt. Sean Crosier about a missing person in West Virginia.43
perception The process of receiving information about, and making sense of, the world around us.
selective attention The process of attending to some information received by our senses and ignoring other information.
confirmation bias The process of screening out information that is contrary to our values and assumptions and to more readily accept confirming information.
mcs62589_ch03_062-091.indd Page 71 11/11/13 7:44 PM user-f-w-198 mcs62589_ch03_062-091.indd Page 71 11/11/13 7:44 PM user-f-w-198 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
72 Part Two Individual Behavior and Processes
PERCEPTUAL ORGANIZATION AND INTERPRETATION People make sense of information even before they become aware of it. This sense making partly includes categorical thinking—the mostly nonconscious process of organizing peo- ple and objects into preconceived categories that are stored in our long-term memory.44 Categorical thinking relies on a variety of automatic perceptual grouping principles. Things are often grouped together on the basis of their similarity or proximity to others. If you notice that a group of similar-looking people includes several professors, for instance, you will likely assume that the others in that group are also professors. Another form of perceptual grouping is based on the need for cognitive closure, such as filling in missing information about what happened at a meeting that you didn’t attend (e.g., who was there, where it was held). A third form of grouping occurs when we think we see trends in other- wise ambiguous information. Several studies have found that people have a natural tendency to see patterns that really are random events, such as presumed winning streaks among sports stars or in gambling.45
The process of “making sense” of the world around us also involves interpreting incoming information, not just organizing it. This happens as quickly as selecting and organizing, because the previously mentioned emotional markers are tagged to incoming stimuli, which are essentially quick judgments about whether that information is good or bad for us. How much time does it take to make these quick judgments? Recent studies estimate that we make reliable judgments about another individual’s trustworthiness based on viewing a facial image for as little as 50 milliseconds (1/20th of a second) In fact, whether we see a face for a minute or for just 200 milliseconds, our opinion of whether we like or trust that person is about the same.46 Collectively, these studies reveal that selective attention, perceptual organization, and interpretation operate very quickly and to a large extent without our awareness.
Mental Models To achieve our goals with some degree of predictability and sanity, we need road maps of the environments in which we live. These road maps, called mental models, are knowledge structures that we develop to describe, explain, and predict the world around us.47 They consist of visual or relational images in our mind, such as what the classroom looks like or what happens when we submit an assignment late. Mental models partly rely on the process of perceptual grouping to make sense of things; they fill in the missing pieces, including the causal connection among events. For example, you have a mental model about attending a class lecture or seminar, including assumptions or expecta- tions about where the instructor and students arrange themselves in the room, how they ask and answer questions, and so forth. In other words, we create a mental image of a class in progress.
Mental models play an important role in sense making, yet they also make it difficult to see the world in different ways. For example, accounting professionals tend to see corporate problems from an accounting perspective, whereas marketing professionals see the
same problems from a marketing perspective. Mental models also block our recognition of new opportunities. How do we change mental models? That’s a tough challenge. After all, we developed these knowledge structures from several years of experience and reinforcement. The most important way to minimize the perceptual problems with mental models is to be aware of and frequently question
How much perceptual structure do you need? Visit connect. mcgrawhill.com to assess yourself on this aspect of social perception, as well as for activities and test questions to help you learn about various perceptual errors.
categorical thinking Organizing people and objects into preconceived categories that are stored in our long-term memory.
mental models Knowledge structures that we develop to describe, explain, and predict the world around us.
mcs62589_ch03_062-091.indd Page 72 11/11/13 7:44 PM user-f-w-198 mcs62589_ch03_062-091.indd Page 72 11/11/13 7:44 PM user-f-w-198 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Chapter Three Perceiving Ourselves and Others in Organizations 73
them. We need to ask ourselves about the assumptions we make. Working with people from diverse backgrounds is another way to break out of existing mental models. Colleagues from different cultures and areas of expertise tend to have different mental models, so working with them makes our own assumptions more obvious.
Specific Perceptual Processes and Problems Embedded within the general perceptual process are specific subprocesses and associated biases and other errors. We will examine several of these perceptual processes and biases, as well as their implications for organizational behavior, beginning with the most widely known one: stereotyping.
STEREOTYPING IN ORGANIZATIONS One reason why few women become firefighters is that they, along with their family and friends, usually depict firefighters as rugged, risk-oriented, physically strong, and male. Al- though this image has kernels of truth—firefighting requires above-average physical strength and has above-average risk—several important features of the occupation are seldom men- tioned, such as helping others, teamwork, and safety consciousness. In other words, people have a stereotype of firefighters that is neither accurate nor desirable for most women.
Stereotyping is the perceptual process in which we assign characteristics to an identifiable group and then automatically transfer those features to anyone we believe is a member of that group.49 The assigned characteristics tend to be difficult to observe, such as personality traits and abilities, but they can also include physical characteristics and a host of other qualities. For instance, most people hold the stereotype that professors are intelligent and absent- minded. Stereotypes are formed to some extent from personal experience, but they are
Jason Blumer defies anyone’s stereotype of an accountant. The president (he prefers Chief Innovation Officer) of a boutique CPA firm in Greenville, South Carolina, usually wears jeans, T-shirts, and flip-flops around the office. He writes a popular blog, is a Twitter maniac, Skypes with clients, and hams it up with distorted photos on his iPad. “There is a new day dawning, and this country better realize we CPAs are now cool, Mac-loving, flip-flop wearing, global-serving, math-hating innovators,” says Blumer about his stereotype-busting ways.48
LO 3-3
stereotyping The process of assigning traits to people based on their membership in a social category.
mcs62589_ch03_062-091.indd Page 73 11/11/13 7:44 PM user-f-w-198 mcs62589_ch03_062-091.indd Page 73 11/11/13 7:44 PM user-f-w-198 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
74 Part Two Individual Behavior and Processes
mainly provided to us through media images (e.g., movie characters) and other cultural prototypes. Consequently, stereotypes are shared beliefs across an entire society and some- times across several cultures, rather than beliefs that differ from one person to the next.
Stereotyping involves assigning a group’s perceived attributes to individuals known or believed to be members of that group. Everyone identified as a member of the stereotyped group is assumed to possess these characteristics. If we learn that someone is a professor, for example, we implicitly assume the person is also intelligent and absentminded. Historically, stereotypes were defined as exaggerations or falsehoods. This is often true, but some stereo- types have kernels of truth. Some features of the stereotype are more common among people in the group than in other groups. Still, stereotypes embellish or distort the kernels of truth and include other features that are false.
Why People Stereotype People engage in stereotyping because, as a form of categorical thinking, it is a natural and mostly nonconscious “energy-saving” process that simplifies our understanding of the world. It is easier to remember features of a stereotype than the constella- tion of characteristics unique to everyone we meet.50 A second reason is that we have an innate need to understand and anticipate how others will behave. We don’t have much information when first meeting someone, so we rely heavily on stereotypes to fill in the missing pieces. The higher the perceiver’s need for cognitive closure, the higher the reliance on stereotypes.
A third explanation for stereotyping is that it is motivated by the observer’s own self- enhancement and social identity. Earlier in this chapter, we explained that people define themselves by the groups to which they belong or have an emotional attachment. They are also motivated to maintain a positive self-concept. This combination of social identity and self- enhancement leads to the processes of categorization, homogenization, and differentiation:51
• Categorization. Social identity is a comparative process, and the comparison begins by categorizing people into distinct groups. By viewing someone (including yourself ) as a Texan, for example, you remove that person’s individuality and instead see him or her as a prototypical representative of the group called Texans. This categorization then allows you to distinguish Texans from people who live in, say, California or New Jersey.
• Homogenization. To simplify the comparison process, we tend to think that people within each group are very similar. For instance, we think Texans collectively have similar attitudes and characteristics, whereas Californians collectively have their own set of characteristics. Of course, every individual is unique, but we tend to lose sight of this fact when thinking about our social identity and how we compare with peo- ple in other social groups.
• Differentiation. Along with categorizing and homogenizing people, we tend to assign more favorable characteristics to people in our groups than to people in other groups.52 This differentiation is motivated by self-enhancement because being in a “better” group produces higher self-esteem. Differentiation is often subtle, but it can escalate into a “good guy–bad guy” contrast when groups engage in overt conflict with each other. In other words, when out-group members threaten our self-concept, we are particularly motivated (often without our awareness) to assign negative stereotypes to them. Some research suggests that men have stronger differentiation biases than do women, but we all differentiate to some extent.
Problems with Stereotyping Everyone engages in stereotyping, but this process distorts perceptions in various ways. One distortion is that stereotypes do not accurately describe every person in a social category. Consider how accountants are typically stereotyped in films and literature. Although sometimes depicted as loyal and conscientious, accountants are usually shown as boring, monotonous, cautious, unromantic, obtuse, antisocial, shy, dysfunctional, devious, calculating, and malicious.53 The traditional accountant stereotype perhaps fits the description of a few accountants, but it is certainly not characteristic of all—or even most— people in this profession. Even so, once we categorize someone as an accountant, the stereotypic
mcs62589_ch03_062-091.indd Page 74 11/11/13 7:44 PM user-f-w-198 mcs62589_ch03_062-091.indd Page 74 11/11/13 7:44 PM user-f-w-198 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Chapter Three Perceiving Ourselves and Others in Organizations 75
features of accountants (boring, antisocial, etc.) are transferred to that person, even though we have not attempted to verify those characteristics in that person.
Another problem with stereotyping is that it lays the foundation for discriminatory atti- tudes and behavior. Most of this perceptual bias occurs as unintentional (systemic) discrimi- nation, whereby decision makers rely on stereotypes to establish notions of the “ideal” person in specific roles. A person who doesn’t fit the ideal tends to receive a less favorable evaluation. This subtle discrimination often shows up in age discrimination claims, such as a case in which Ryanair’s recruitment advertising said it was looking for “young dynamic” employees. Recruiters at the Irish discount airline probably didn’t intentionally discriminate against older people, but the tribunal concluded that systemic discrimination did occur, because none of the job applicants was over 40 years old.54
The more serious form of stereotype bias is intentional discrimination or prejudice, in which people hold unfounded negative attitudes toward people belonging to a particular stereotyped group.56 Is overt prejudice less common today? Perhaps, but there are plenty of examples to re- mind us that it still exists. This chapter’s opening case study described a captain in the Calgary fire department whose negative attitude toward female firefighters was evident in his conde- scending question and obscene label to describe women. Another example comes from an Aus- tralian study, which reported that female firefighters are often assigned marginal roles on the fire line, which limits their work experience and, consequently, opportunities for advancement.57
Prejudicial discrimination has also been reported in employment selection decisions. A French study of 2,300 help-wanted ads found that job applicants with French-sounding names were much more likely to get job interviews than were applicants with North African or sub-Saharan African names, even though employers received identical résumés for both names! Furthermore, when applicants personally visited human resource staff, those with foreign names were often told the job had been filled, whereas few of the applicants with French names received this message (even when visiting afterwards).58
If stereotyping is such a problem, shouldn’t we try to avoid this process altogether? Unfortu- nately, it’s not that simple. Most experts agree that categorical thinking (including stereotyping) is an automatic and nonconscious process. Specialized training programs can minimize stereo- type activation to some extent, but for the most part the process is hardwired in our brain cells.59 Also remember that stereotyping helps us in several valuable (though fallible) ways de- scribed earlier: minimizing mental effort, filling in missing information, and supporting our social identity. The good news is that while it is very difficult to prevent the activation of stereo- types, we can minimize the application of stereotypic information. In other words, though we automatically categorize people and assign stereotypic traits to them, we can consciously minimize the extent to which we rely on that stereotypic information. Later in this chapter, we identify ways to minimize stereotyping and other perceptual biases.
Women represent more than one-third of the workforce and upwards of 20 percent of middle managers in many countries, yet they comprise less than 10 percent of corporate board members. Some say the problem is mainly systemic discrimination, such as nonconsciously relying on a male prototype of the ideal board member when selecting candidates for this role. Others suggest the lack of women in the boardroom is due to more explicit prejudice. Female corporate board members are rarest (1 percent or less) in four Middle East countries and Japan; they have the highest percentage of board seats in Norway (40.1 percent), Sweden (27.3 percent), Finland (24.5 percent), and the United States (16.1 percent). Female board representation is rising quickly in France due to recent government legislation mandating 40 percent female board membership within the next few years.55
mcs62589_ch03_062-091.indd Page 75 11/11/13 7:44 PM user-f-w-198 mcs62589_ch03_062-091.indd Page 75 11/11/13 7:44 PM user-f-w-198 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
76 Part Two Individual Behavior and Processes
Yes (high consistency)
Yes (high consistency)
Consistency
Did this person act this way in this
situation in the past?
Yes (low distinctiveness)
No (high distinctiveness)
Distinctiveness
Does this person act this way in other
situations?
No (low consensus)
Yes (high consensus)
Consensus
Do other people act this way
in this situation?
Behavior is attributed to situational factors
External Attribution
Behavior is attributed to personal factors
Internal Attribution
ATTRIBUTION THEORY Another widely discussed perceptual phenomenon in organizational settings is the attribution process.60 Attribution involves forming beliefs about the causes of behavior or events. The most popular version of attribution theory is that we perceive whether an observed behavior or event is caused mainly by characteristics of the person (internal factors) or by the environ- ment (external factors). Internal factors include the person’s ability or motivation, whereas external factors include resources, coworker support, or luck. If someone doesn’t show up for an important meeting, for instance, we infer either internal attributions (e.g., the person is forgetful or lacks motivation) or external attributions (e.g., traffic, a family emergency, or other circumstances prevented the coworker from attending).
People rely on the three attribution rules—consistency, distinctiveness, consensus—to decide whether someone’s behavior and performance are mainly caused by their personal characteristics or environmental influences (see Exhibit 3.4).61 To illustrate how these three attribution rules operate, imagine a situation in which an employee is making poor quality products on a particular machine. We would probably conclude that the employee lacks
EXHIBIT 3.4
Attribution Theory Rules
attribution process The perceptual process of deciding whether an observed behavior or event is caused largely by internal or external factors.
Visit connect.mcgrawhill.com for activities and test questions to help you learn about attribution theory.
mcs62589_ch03_062-091.indd Page 76 11/11/13 7:44 PM user-f-w-198 mcs62589_ch03_062-091.indd Page 76 11/11/13 7:44 PM user-f-w-198 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Chapter Three Perceiving Ourselves and Others in Organizations 77
skill or motivation (an internal attribution) if the employee consistently makes poor quality products on this machine (high consistency), the em- ployee makes poor quality products on other machines (low distinctive- ness), and other employees produce good quality products on this machine (low consensus). In contrast, we would decide that there is something wrong with the machine (an external attribution) if the employee consis- tently makes poor quality products on this machine (high consistency), the employee makes good-quality products on other machines (high distinc- tiveness), and other employees also make poor quality products on this machine (high consensus). Notice that consistency is high for both internal and external attributions. This occurs because low consistency (the person’s output quality on this machine is sometimes good and sometimes poor) weakens our confidence about whether the source of the problem is the person or the machine.
The attribution process is important because understanding cause-and-effect relation- ships enables us to work effectively with others and assign praise or blame to them.62 Suppose a coworker didn’t complete his or her task on a team project. You would ap- proach this situation differently if you believe the coworker was lazy or lacked sufficient skill (an internal attribution) than if you believed the poor performance was due to lack of time or resources available to the coworker (an external attribution). Similarly, our respect for leaders depends on whether we believe their actions are due to personal characteristics or the situation. We also react differently to attributions of our own behavior and perfor- mance. For instance, students who make internal attributions about their poor grades are more likely to drop out of their programs than if they make external attributions about those grades.63
Attribution Errors We are strongly motivated to assign internal or external attribu- tions to someone’s behavior, but this perceptual process is also susceptible to errors. One such error is self-serving bias—the tendency to attribute our failures to external causes (such as bad luck) more than internal causes (e.g., inefficiency), while successes are due more to internal than external factors.64 Simply put, we take credit for our successes and blame others or the situation for our mistakes. In annual reports, for example, executives mainly refer to their personal qualities as reasons for the company’s successes and to external factors as reasons for the company’s failures. Similarly, entrepreneurs in one recent study over- whelmingly cited situational causes for their business failure (funding, economy), whereas they understated personal causes such as lack of vision or social skills.65
Why do people engage in self-serving bias? Fictional New York crime investigator Philo Vance gave us the answer nearly a century ago when he quipped: “Bad luck is merely a defensive and self-consoling synonym for inefficiency.”66 In other words, self-serving bias is associated with the self-enhancement process described earlier in this chapter. By pointing to external causes of their own failures (e.g., bad luck) and internal causes of their successes, people generate a more positive (and self-consoling) self-concept.
self-serving bias The tendency to attribute our favorable outcomes to internal factors and our failures to external factors.
Coaching employees involves active listening and supportive goal setting, but it also involves reframing employee perceptions so they have a stronger internal attribution. Too often, employees blame the situation for past mistakes and, over time, believe that good performance is beyond their control (an external attribution). Coaching reframes that perception to a stronger internal attribution. Through dialogue, employees can realize “that they have the ability and capacity to take responsibility for their situation and do something about it,” says CJ Scarlet, who coaches employees through Roving Coach.67
mcs62589_ch03_062-091.indd Page 77 11/11/13 7:44 PM user-f-w-198 mcs62589_ch03_062-091.indd Page 77 11/11/13 7:44 PM user-f-w-198 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
78 Part Two Individual Behavior and Processes
SELF-FULFILLING PROPHECY Self-fulfilling prophecy occurs when our expectations about another person cause that person to act in a way that is consistent with those expectations. In other words, our percep- tions can influence reality. Exhibit 3.5 illustrates the four steps in the self-fulfilling prophecy process, using the example of a supervisor and a subordinate.71 The process begins when the
supervisor forms expectations about the employee’s future behavior and performance. These expectations are some- times inaccurate, because first impressions are usually formed from limited information. The supervisor’s expec- tations influence his or her behavior toward employees. In particular, high-expectancy employees (those expected to do well) receive more emotional support through nonver- bal cues (e.g., more smiling and eye contact), more fre- quent and valuable feedback and reinforcement, more
4. Employee's behavior becomes more consistent
with the supervisor's initial expectations
2. Supervisor's expectations affect
his/her behavior toward the employee
1. Supervisor forms expectations about
the employee
3. Supervisor's behavior affects the employee's ability and motivation
(self-confidence)
EXHIBIT 3.5
The Self-Fulfilling Prophecy Cycle
Visit connect.mcgrawhill.com for activities and test questions to help you learn about self-fulfilling prophecy and other perceptual errors.
Another widely studied attribution error is fundamental attribution error (also called cor- respondence bias), which is the tendency to overemphasize internal causes of another person’s behavior and to discount or ignore external causes of their behavior.68 According to this percep- tual error, we are more likely to think coworkers arrive late for work because they aren’t moti- vated than because of environmental constraints (such as traffic congestion). The explanation for fundamental attribution error is that observers can’t easily see the external factors that con- strain another person’s behavior. Also, people like to think that human beings (not the situation) are the prime sources of their behavior. However, fundamental attribution error might not be as common or severe as was previously thought. There is evidence that people from Asian coun- tries are less likely to engage in this bias because those cultures emphasize the context of behavior more than do Western cultures.69 But a recent review of past studies suggests that fundamental attribution error isn’t very noticeable in any society.70
fundamental attribution error The tendency to see the person rather than the situation as the main cause of that person’s behavior.
self-fulfilling prophecy The perceptual process in which our expectations about another person cause that person to act more consistently with those expectations.
mcs62589_ch03_062-091.indd Page 78 11/11/13 7:44 PM user-f-w-198 mcs62589_ch03_062-091.indd Page 78 11/11/13 7:44 PM user-f-w-198 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Chapter Three Perceiving Ourselves and Others in Organizations 79
challenging goals, better training, and more opportunities to demonstrate good performance.
The third step in self-fulfilling prophecy includes two effects of the supervisor’s behavior on the employee. First, through better training and more practice opportunities, a high- expectancy employee learns more skills and knowledge than a low-expectancy employee. Second, the employee becomes more self-confident, which results in higher motivation and willingness to set more challenging goals.72 In the final step, high-expectancy employees have higher motivation and better skills, resulting in better performance, while the opposite is true of low-expectancy employees.
Self-fulfilling prophecy has been observed in many contexts. One of the most famous studies occurred in the Israeli Defense Force. Four combat command course instructors were told that one-third of the incoming trainees had high command potential, one-third had normal potential, and the rest had unknown potential. The trainees had been randomly placed into these categories by the researchers, but the instructors were led to believe that the information they received was accurate. Consistent with self-fulfilling prophecy, high expec- tancy soldiers performed significantly better by the end of the course than did trainees in the other groups. They also had more favorable attitudes toward the course and the instructor’s leadership effectiveness. Other studies have reported that the initial expectations managers and teachers have of their employees and students tend to influence the self-perceptions (particularly self-efficacy) of those followers and can lead to higher or lower performance.73
Contingencies of Self-Fulfilling Prophecy The self-fulfilling prophecy effect is stronger in some situations than in others. It has a stronger effect at the beginning of a relationship, such as when employees are first hired. It is also stronger when several people (rather than just one person) hold the same expectations of the individual. In other words, we might be able to ignore one person’s doubts about our potential but not the collective doubts of several people. The self-fulfilling prophecy effect is also stronger among people with a history of low achievement. These people tend to have lower self-esteem, so they are more easily influenced by others’ opinions of them.74
The main lesson from self-fulfilling prophecy literature is that leaders need to develop and maintain a positive, yet realistic, expectation toward all employees. This recommendation is consistent with the emerging philosophy of positive organizational behavior, which sug- gests that focusing on the positive rather than negative aspects of life will improve organiza- tional success and individual well-being. Communicating hope and optimism is so important that it is identified as one of the critical success factors for physicians and surgeons. Training programs that make leaders aware of the power of positive expectations seem to have minimal effect, however. Instead, generating positive expectations and hope depend on a corporate culture of support and learning. Hiring supervisors who are inherently optimistic toward their staff is another way of increasing the incidence of positive self-fulfilling prophecies.
OTHER PERCEPTUAL EFFECTS Self-fulfilling prophecy, attribution, and stereotyping are among the most common perceptual processes and biases in organizational settings, but there are many others. Four additional
biases that have received attention in organizational settings are briefly described next.
Halo Effect The halo effect occurs when our general impression of a person, usually based on one prominent characteristic, distorts our perception of other characteris- tics of that person.75 If a supervisor who values punctuality notices that an employee is sometimes late for work, the su- pervisor might form a negative image of the employee and evaluate that person’s other traits unfavorably as well. The
positive organizational behavior A perspective of organizational behavior that focuses on building positive qualities and traits within individuals or institutions as opposed to focusing on what is wrong with them.
halo effect A perceptual error whereby our general impression of a person, usually based on one prominent characteristic, colors our perception of other characteristics of that person.
mcs62589_ch03_062-091.indd Page 79 11/11/13 7:44 PM user-f-w-198 mcs62589_ch03_062-091.indd Page 79 11/11/13 7:44 PM user-f-w-198 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
80 Part Two Individual Behavior and Processes
halo effect is most likely to occur when concrete information about the perceived target is missing or we are not sufficiently motivated to search for it. Instead, we use our general im- pression of the person to fill in the missing information.
False Consensus Effect The false consensus effect (also called similar-to-me effect) occurs when people overestimate the extent to which others have similar beliefs or behaviors to our own.76 Employees who are thinking of quitting their jobs overestimate the percentage of coworkers who are also thinking about quitting, for example. There are several explana- tions for false consensus effect. One is that we are comforted by the belief that others are similar to us, particularly regarding less acceptable or divisive behavior. Put differently, we perceive “ everyone does it” to reinforce our self-concept regarding behaviors that do not have a positive image (quitting our job, parking illegally, etc.). A second explanation is that we interact more with people who have similar views and behaviors, which causes us to overestimate how common those views/behaviors are in the entire organization or society. Third, as noted earlier in this chapter, we are more likely to remember information that is consistent with our own views and selectively screen out communication that is contrary to our beliefs. Finally, our social identity process homogenizes people within groups, so we tend to think that everyone in that group has similar opinions and behavior, including the false consensus topic.
Primacy Effect The primacy effect is our tendency to quickly form an opinion of people on the basis of the first information we receive about them.77 It is the notion that first impressions are lasting impressions. This rapid perceptual organization and interpreta- tion occurs because we need to make sense of the world around us. The problem is that first impressions—particularly negative first impressions—are difficult to change. After catego- rizing someone, we tend to select subsequent information that supports our first impression and screen out information that opposes that impression.
Recency Effect The recency effect occurs when the most recent information dominates our perceptions.78 This perceptual bias is most common when people (especially those with limited experience) are making an evaluation involving complex infor-
mation. For instance, audi- tors must digest large volumes of information in their judgments about fi- nancial documents, and the most recent information received prior to the deci- sion tends to get weighted
DILBERT © Scott Adams. Distributed by UNIVERSAL UCLICK. Reprinted with permission. All rights reserved.
false consensus effect A perceptual error in which we overestimate the extent to which others have beliefs and characteristics similar to our own.
primacy effect A perceptual error in which we quickly form an opinion of people based on the first information we receive about them.
recency effect A perceptual error in which the most recent information dominates our perception of others.
mcs62589_ch03_062-091.indd Page 80 11/11/13 7:44 PM user-f-w-198 mcs62589_ch03_062-091.indd Page 80 11/11/13 7:44 PM user-f-w-198 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Chapter Three Perceiving Ourselves and Others in Organizations 81
more heavily than information received at the beginning of the audit. Similarly, when supervisors evaluate the performance of employees over the previous year, the most re- cent performance information dominates the evaluation because it is the most easily recalled.
Improving Perceptions We can’t bypass the perceptual process, but we should try to minimize perceptual biases and distortions. Three potentially effective ways to improve perceptions include awareness of perceptual biases, self-awareness, and meaningful interaction.
AWARENESS OF PERCEPTUAL BIASES One of the most obvious and widely practiced ways to reduce perceptual biases is by knowing that they exist. For example, diversity awareness training tries to minimize discrim- ination by making people aware of systemic discrimination as well as prejudices that occur through stereotyping. This training also attempts to dispel myths about people from various cultural and demographic groups. Awareness of perceptual biases can reduce these biases to some extent by making people more mindful of their thoughts and actions. However, aware- ness training has only a limited effect.79 One problem is that teaching people to reject incor- rect stereotypes has the unintended effect of reinforcing rather than reducing reliance on those stereotypes. Another problem is that diversity training is ineffective for people with deeply held prejudices against those groups.
Self-fulfilling prophecy awareness training has also failed to live up to expectations.81 This training approach informs managers about the existence of the self-fulfilling prophecy effect and encourages them to engage in more positive rather than negative self-fulfilling prophecies. Unfortunately, research has found that managers continue to engage in negative self-fulfilling prophecies after they complete the training program.
In most large corporations, diversity training programs are well-entrenched bastions in the battle against workplace discrimination. In most programs, participants are reminded to respect cultural and gender differences. They also learn common assumptions and biases that people make about other demographic groups. When companies lose discrimination cases, one of their first requirements is to introduce diversity training. In spite of the good intentions, several sources argue that di- versity training might not be very useful. One concern is that most sessions are mandatory, so employees aren’t really committed to their content. Furthermore, biases and prejudices are deeply an- chored, so a half-day lecture and group chat on diversity won’t change employee perceptions and behavior. Even if these pro- grams motivate employees to be more tolerant of others and to
avoid stereotypes, these good intentions evaporate quickly in companies that lack a diversity culture. It gets worse. One major review reported that the presence of diversity training increased the percentage of white women in man- agement, but it decreased the percentage of black women in man- agement by the same degree. There is some concern that discussing demographic and cultural differences increases rather than de- creases stereotyping. For instance, students in one study showed more bias against the elderly after watching a video encouraging them to be less biased against older people! Diversity training programs might also produce ill-feelings among participants. One program for incoming freshmen at the University of Delaware was cancelled after white students complained it made them feel racist and gay students felt pressured to reveal their sexual orientation.
debating point DO WE NEED DIVERSITY TRAINING PROGRAMS?80
LO 3-4
mcs62589_ch03_062-091.indd Page 81 11/11/13 7:44 PM user-f-w-198 mcs62589_ch03_062-091.indd Page 81 11/11/13 7:44 PM user-f-w-198 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
82 Part Two Individual Behavior and Processes
IMPROVING SELF-AWARENESS A more successful way to minimize perceptual biases is by increasing self-awareness.82 We need to become more aware of our beliefs, values, and attitudes and, from that insight, gain a better understanding of biases in our own decisions and behavior. This self-awareness tends to reduce perceptual biases by making people more open-minded and nonjudgmental toward others. Self-awareness is equally important in other ways. The emerging concept of authentic leadership emphasizes self-awareness as the first step in a person’s ability to effectively lead others (see Chapter 12). Essentially, we need to understand our own values, strengths, and biases as a foundation for building a vision and leading others toward that vision.83
But how do we become more self-aware? One approach is to complete formal tests that indicate any implicit biases we might have toward others. The Implicit Association Test (IAT) apparently reveals biases. Although the accuracy of the IAT is being hotly debated by scholars, it attempts to detect subtle racial, age, and gender bias by associat- ing positive and negative words with specific demographic groups.84 Many people are much more cautious about their stereotypes and prejudices after discovering that their test results show a personal bias against older people or individuals from different ethnic backgrounds.85
Another way to reduce perceptual biases through increased self-awareness is by applying the Johari Window.86 Developed by Joseph Luft and Harry Ingram (hence the name “Johari”), this model of self-awareness and mutual understanding divides information about you into four “windows”—open, blind, hidden, and unknown—based on whether your own values, beliefs, and experiences are known to you and to others (see Exhibit 3.6). The open area includes information about you that is known both to you and to others. The blind area refers to information that is known to others but not to you. For example, your colleagues might notice that you are self-conscious and awkward when meeting the company chief executive, but you are unaware of this fact. Information known to you but unknown to others is found in the hidden area. Finally, the unknown area includes your values, beliefs, and experiences that aren’t known to you or others.
The main objective of the Johari Window is to increase the size of the open area so that both you and colleagues are aware of your perceptual limitations. This objective is partly accomplished by reducing the hidden area through disclosure—informing others of your beliefs, feelings, and experiences that may influence the work relationship. The open area also increases through feedback from others about your behavior. Feedback reduces your blind area because, according to recent studies, people near you are good
Known to others
Feedback from others
Known to self
Unknown to self
Unknown to othersD
is c
lo su
re t
o o
th e
rs Open area
Hidden area
Unknown area
Blind area
EXHIBIT 3.6
Johari Window Model of Self-Awareness and Mutual Understanding Source: Based on J. Luft, Of Human Interaction (Palo Alto, CA: National Press Books, 1969).
Johari Window A model of mutual understanding that encourages disclosure and feedback to increase our own open area and reduce the blind, hidden, and unknown areas.
mcs62589_ch03_062-091.indd Page 82 11/11/13 7:44 PM user-f-w-198 mcs62589_ch03_062-091.indd Page 82 11/11/13 7:44 PM user-f-w-198 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Chapter Three Perceiving Ourselves and Others in Organizations 83
sources of information about many (but not all) of your traits and behaviors.87 Finally, the combination of disclosure and feedback occasionally produces revelations about you in the unknown area.
How well do you understand the other person’s perspective? Visit connect.mcgrawhill.com to estimate your cognitive empathy.
How well do you experience the emotions that others are experiencing? Visit connect.mcgrawhill.com to estimate your emotional empathy.
MEANINGFUL INTERACTION The Johari Window relies on direct conversations about ourselves and others, whereas meaningful interaction is a more indirect, yet potentially powerful, approach to improving self-awareness and mutual understanding.88 Meaningful interaction is any activity in which people engage in valued (meaningful, not trivial) activities. The activities might be work- related, such as when senior executives work alongside frontline staff. Or the activities might occur outside the workplace, such as when sales staff from several countries participate in outdoor challenges.
Meaningful interaction is founded on the contact hypothesis, which states that, un- der certain conditions, people who interact with each other will be less perceptually bi- ased because they have a more personal understanding of the other person and their group.89 Simply spending time with members of other groups can improve this under- standing to some extent. However, meaningful interaction is strongest when people work closely and frequently with one another on a shared goal that requires mutual coopera- tion and reliance. Furthermore, everyone should have equal status in that context, should be engaged in a meaningful task, and should have positive experiences with others in those interactions. Global Connections 3.1 describes several examples of meaningful interaction in which executives work beside frontline staff or frontline staff work with employees in other parts of the organization.
Meaningful interaction reduces dependence on stereotypes because we gain better knowledge about individuals and experience their unique attributes in action. Meaningful interaction also potentially improves empathy toward others. Empathy refers to under- standing and being sensitive to the feelings, thoughts, and situations of others.91 People empathize when they visualize themselves in the other person’s place as if they are the other person. This perceptual experience is both cognitive and emotional, meaning that empathy is about understanding as well as feeling what the other person feels in that con- text. Empathizing with others improves our sensitivity to the external causes of another
person’s performance and behavior, thereby reducing fun- damental attribution error. A supervisor who imagines what it’s like to be a single mother, for example, would become more sensitive to the external causes of lateness and other events among such employees. However, trying to empathize with others without spending time with them might actually increase rather than reduce stereo- typing and other perceptual biases.92
contact hypothesis A theory stating that the more we interact with someone, the less prejudiced or perceptually biased we will be against that person.
empathy A person’s understanding of and sensitivity to the feelings, thoughts, and situations of others.
mcs62589_ch03_062-091.indd Page 83 11/11/13 7:44 PM user-f-w-198 mcs62589_ch03_062-091.indd Page 83 11/11/13 7:44 PM user-f-w-198 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
84 Part Two Individual Behavior and Processes
Global Mindset: Developing Perceptions Across Borders Rakuten Inc. is Japan’s largest e-commerce website and one of the ten biggest Internet companies in the world. The Tokyo-based firm is rapidly expanding beyond Japanese borders, which demands a more global focus. “In the online business, which easily crosses national boundaries, domestic companies are not our sole rivals,” explains Rakuten CEO Hiroshi Mikitani. Therefore, Mikitani recently made English the company’s official in- house language. Even more important, Rakuten is seeking out job applicants with inter- national experience and a mindset to match. “Since we declared our intention to make English our official language, we’ve had more applicants that clearly have a global mind- set,” says Mikitani.93
Rakuten and other companies are paying much more attention these days to developing a workforce with a global mindset. A global mindset refers to an individual’s ability to per- ceive, know about, and process information across cultures. It includes (1) an awareness of, openness to, and respect for other views and practices in the world; (2) the capacity to em- pathize and act effectively across cultures; (3) the ability to process complex information about novel environments; and (4) the ability to comprehend and reconcile intercultural matters with multiple levels of thinking.94
Experiencing Meaningful Interaction on the Front Line90
Warren Weisberg, co-owner of PortionPac Chemical, likes to frequently visit the factory behind the head office to hear employee views about the operations and products. But for one day every year over the past two decades, Weisberg and all other front office employees at the Chicago-based clean- ing fluids manufacturer have also worked in the factory, per- forming duties assigned by plant supervisor Mary Jaramillo. “We want them to see how difficult the jobs are,” says Jaramillo. Warren Weisberg and his front office staff maintain a bet- ter understanding of their colleagues in the manufacturing op- erations by working alongside them each year. At Singapore grocery chain FairPrice, all senior staff work in a store two days each year, usually stocking shelves, cashiering, or rounding up trolleys. FairPrice CEO Sean Kian Peng calls the initiative “management by attachment,” because the experience helps executives empathize better with frontline staff. WideOpenWest (WOW), the Denver-based telecommuni- cation company, applies a similar practice. It asks its profes- sional and management staff to work on the front lines—either at the call center or traveling with installers to customers’ homes—at least once every quarter. CEO Colleen Abdoulah says she assists the installers by fetching ladders from the van and drilling holes where instructed. The experience is always valuable, even though her technical skills aren’t always up to standard. “The couple whose home we were in were relieved to find out I was the CEO of WOW and not a regular installer,” says Abdoulah about a recent installation job.
Working in these frontline jobs also gives executives a re- ality check about themselves, not just about the business and its employees. For example, while participating in a television series on executives in frontline jobs, Herschend Family En- tertainment CEO Joel Manby became aware that he had be- come a bit too reclusive during the great financial crisis. “Working with [these employees] helped me realize that during the recession, I had become withdrawn and detached, affected by difficult business decisions,” Manby acknowledges. “They showed me the importance of getting back in touch with people.”
global connections 3.1
Herschend Family Entertainment CEO Joel Manby (shown in photo) and other executives keep their perceptions in focus by working alongside frontline staff.
global mindset An individual’s ability to perceive, appreciate, and empathize with people from other cultures, and to process complex cross- cultural information.
LO 3-5
mcs62589_ch03_062-091.indd Page 84 11/11/13 7:44 PM user-f-w-198 mcs62589_ch03_062-091.indd Page 84 11/11/13 7:44 PM user-f-w-198 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
Chapter Three Perceiving Ourselves and Others in Organizations 85
Let’s look at each of these features. First, a global mindset occurs as people develop more of a global than local/parochial frame of reference about their business and its en- vironment. They also have more knowledge and appreciation of many cultures and do not judge the competence of others by their national or ethnic origins. Second, a global mindset includes understanding the mental models held by colleagues from other cul- tures, as well as their emotional experiences in a given situation. This empathy translates into more effective use of words and behaviors that are compatible with the local cul- ture. Third, people with a strong global mindset are able to process and analyze large volumes of information in new and diverse situations. Finally, a global mindset involves the capacity to quickly develop useful mental models of situations, at both local and global levels of analysis.
As you can imagine, employees offer tremendous value to organizations as they develop a global mindset.96 They develop better relationships across cultures by understanding and showing respect to distant colleagues and partners. They can sift through huge volumes of ambiguous and novel information transmitted in multinational relationships. They have a capacity to form networks and exchange resources more rapidly across borders. They also develop greater sensitivity and respond more quickly to emerging global opportunities.
DEVELOPING A GLOBAL MINDSET Developing a global mindset involves improving one’s perceptions, so the practices described related to awareness, self-awareness, and meaningful interaction are relevant. As with most perceptual capabilities, a global mindset begins with self-awareness—understanding one’s own beliefs, values, and attitudes. Through self-awareness, people are more open-minded and nonjudgmental when receiving and processing complex information for decision mak- ing. In addition, companies develop a global mindset by giving employees opportunities to compare their own mental models with those of coworkers or partners from other regions of the world. For example, employees might participate in online forums about how well the product’s design or marketing strategy is received in the United States versus India or Chile. When companies engage in regular discussions about global competitors, suppliers, and other
With operations in more than 30 countries, Keppel Offshore & Marine relies on employees with a global mindset. In fact, global mindset is one of the core values at the Singapore- based offshore rig designer and builder. Keppel encourages professional and management staff to develop their global mindset by visiting the company’s operations in other countries, attending debriefing sessions from those visits, and accepting longer-term overseas assignments. “I think that overseas exposure can help to develop a person professionally and personally,” says a Keppel executive after attending a debriefing session where a group of Keppel Singapore workers described their visit to the company’s operations in Korea and China.95
mcs62589_ch03_062-091.indd Page 85 11/11/13 7:44 PM user-f-w-198 mcs62589_ch03_062-091.indd Page 85 11/11/13 7:44 PM user-f-w-198 /204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles/204/MH02010/mcs62589_disk1of1/0077862589/mcs62589_pagefiles
86 Part Two Individual Behavior and Processes
3-1 Describe the elements of self-concept and explain how each affects an individual’s behavior and well-being.
Self-concept includes an individual’s self-beliefs and self- evaluations. It has three structural characteristics—complexity, consistency, and clarity—all of which influence employee well- being, behavior, and performance. People are inherently motivated to promote and protect their self-concept (self-enhancement) and to verify and maintain their existing se
