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organizational_behavior_7th_edition.pdf
organizational behavior
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s e v e 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
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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.
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ISBN 978-0-07-786258-9 MHID 0-07-786258-9
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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
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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
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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.
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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.
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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
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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.
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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
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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!
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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organizational behavior
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1 Introduction to the Field of Organizational Behavior
le a
rn in
g o
b je
ct iv
e s 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
c ha pter
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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.
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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
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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
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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.
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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.
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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
P urchasing
subsystem
Subsystem
Subsystem
Su bs
yst em
Subs ystem
Technological subsystem
Production subsystem
Accounting subsystem
S ub
sy st
em
Cult ural
subs yste
m
Socializationsubsystem
S u b syste
m
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.
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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
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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.
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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.
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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
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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
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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
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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
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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.
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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
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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.
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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.
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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
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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
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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
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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.
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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.
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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.
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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
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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.
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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?
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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.
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2 Individual Behavior, Personality, and Values
le a
rn in
g o
b je
ct iv
e s 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
c ha pter
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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.
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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
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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.
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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
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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
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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.
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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
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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.
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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.
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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
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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.
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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
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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.
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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
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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
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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
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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
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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
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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.
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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.
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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
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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
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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)
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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.
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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.
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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).
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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?
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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
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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
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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.
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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.
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3 Perceiving Ourselves and Others in Organizations
le a
rn in
g o
b je
ct iv
e s
62
c ha pter
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.
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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.
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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
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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
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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.
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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
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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.
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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.
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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
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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.
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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.
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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.
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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
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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
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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.
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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
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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.
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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.
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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.
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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
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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 s u
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.
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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.
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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
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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
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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 self-concept (self- verification). Self-evaluation consists of self-esteem, self-efficacy, and locus of control. Self-concept also consists of both personal identity and social identity. Social identity theory explains how people define themselves in terms of the groups to which they belong or have an emotional attachment.
3-2 Outline the perceptual process and discuss the effects of categorical thinking and mental models in that process.
Perception involves selecting, organizing, and interpreting information to make sense of the world around us. Perceptual organization applies categorical thinking—the mostly non- conscious process of organizing people and objects into precon- ceived categories that are stored in our long-term memory.
Mental models—knowledge structures that we develop to de- scribe, explain, and predict the world around us—also help us make sense of incoming stimuli.
3-3 Discuss how stereotyping, attribution, self-fulfilling prophecy, halo, false-consensus, primacy, and recency effects influence the perceptual process.
Stereotyping occurs when people assign traits to others based on their membership in a social category. This assignment econo- mizes mental effort, fills in missing information, and enhances our self-concept, but it also lays the foundation for prejudice and systemic discrimination. The attribution process involves deciding whether an observed behavior or event is caused mainly by the person (internal factors) or the environment (external fac- tors). Attributions are decided by perceptions of the consistency, distinctiveness, and consensus of the behavior. This process is subject to self-serving bias and fundamental attribution error. A self-fulfilling prophecy occurs when our expectations about another person cause that person to act in a way that is consis- tent with those expectations. This effect is stronger when em- ployees first join the work unit, when several people hold these expectations, and when the employee has a history of low
chapter summary
stakeholders, they eventually move the employee’s sphere of awareness more toward that global stratum.
A global mindset develops through better knowledge of people and cultures. Some knowledge is acquired through formal programs, such as diversity training, but deeper absorption results from immersion in those cultures. Just as executives need to experience frontline jobs to better understand their customers and employees, employees also need to have meaningful interaction with colleagues from other cultures in those settings. The more people embed themselves in the local environment (e.g., following local practices, eating local food, using the local language), the more they tend to understand the perspectives and attitudes of their colleagues in those cultures.
DEVELOPING A GLOBAL MINDSET THROUGH IMMERSION Ernst & Young, IBM, Procter & Gamble, and a few other organizations have introduced special programs to accelerate global mindset development by sending teams of employees on social responsibility missions in developing countries for one or two months. “We need people with a global mindset, and what better way to develop a global mindset, and what more realistic way, than for somebody to have an immersion experience with just enough safety net,” says Deborah Holmes, Ernst & Young Global Director of Corporate Responsibility.97
IBM’s Corporate Service Corps program is a case in point. Each year about 500 IBM-ers from dozens of countries are organized into small teams and dispatched to developing coun- tries. For one month, these diverse teams assist local people on an economic or social devel- opment project. “These people actually go out and work in emerging markets, to work in NGOs [nongovernment organizations], to work in these other kinds of environments, so they can get a perspective and learn … how to think about problems from another perspec- tive, from another point of view,” explains an IBM executive.98
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1. You are manager of a district that has just hired several recent university and college graduates. Most of these people are starting their first full-time job, though most of them have held part-time and summer positions in the past. They have general knowledge of their particular skill area (accounting, engineering, marketing, etc.) but know relatively little about specific business practices and developments. Explain how you would nurture the self- concepts in these new hires to strengthen their performance and maintain their psychological well-being. Also explain how you might reconcile the tendency for self-enhancement while preventing the new employees from forming a negative self-evaluation.
2. Do you define yourself in terms of the university you attend? Why or why not? What are the implications of your answer for your university or college?
3. Imagine a situation of conflict between you and your boss. Discuss how understanding the elements of self-concept, its complexity, consistency, and clarity may be useful in such a situation.
4. Several years ago, senior executives at energy company CanOil wanted to acquire an exploration company (HBOG) that was owned by another energy company, AmOil. Rather than face a hostile takeover and unfavorable tax implications, CanOil’s two top executives met with the CEO of AmOil to discuss a friendly exchange of stock to carry out the transaction. AmOil’s chief executive was previously unaware of CanOil’s plans, and as the meeting began, the AmOil executive warned that he was there merely to listen. The CanOil executives were confident that AmOil wanted to sell HBOG because energy legislation at the time
critical thinking questions
attribution process, p. 76 categorical thinking, p. 72 confirmation bias, p. 71 contact hypothesis, p. 83 empathy, p. 83 false consensus effect, p. 80 fundamental attribution error, p. 78 global mindset, p. 84 halo effect, p. 79
Johari Window, p. 82 locus of control, p. 68 mental models, p. 72 perception, p. 70 positive organizational behavior, p. 79 primacy effect, p. 80 recency effect, p. 80 selective attention, p. 71
self-concept, p. 64 self-efficacy, p. 68 self-enhancement, p. 66 self-fulfilling prophecy, p. 78 self-serving bias, p. 77 self-verification, p. 67 social identity theory, p. 69 stereotyping, p. 73
key terms
achievement. Four other perceptual errors commonly noted in organizations are the halo effect, false consensus effect, primacy effect, and recency effect.
3-4 Discuss three ways to improve perceptions, with specific applications to organizational situations.
One way to minimize perceptual biases is to become more aware of their existence. Awareness of these biases makes people more mindful of their thoughts and actions, but this training some- times reinforces rather than reduces reliance on stereotypes and tends to be ineffective for people with deeply held prejudices. A second strategy is to become more aware of biases in our own decisions and behavior. Self-awareness increases through formal tests such as the implicit association text (IAT) and by applying the Johari Window, which is a process in which others provide feedback to you about your behavior, and you offer disclosure to them about yourself. The third strategy is meaningful interac- tion, which applies the contact hypothesis that people who in- teract will be less prejudiced or perceptually biased toward one another. Meaningful interaction is strongest when people work closely and frequently with relatively equal status on a shared meaningful task that requires cooperation and reliance on one
another. Meaningful interaction helps improve empathy, which is a person’s understanding and sensitivity to the feelings, thoughts, and situations of others.
3-5 Outline the main features of a global mindset and justify its usefulness to employees and organizations.
A global mindset refers to an individual’s ability to perceive, know about, and process information across cultures. This includes (1) an awareness of, openness to, and respect for other views and practices in the world; (2) the capacity to empathize and act effectively across cultures; (3) an ability to process complex information about novel environments; and (4) the ability to comprehend and reconcile intercultural matters with multiple levels of thinking. A global mindset enables people to develop better cross-cultural relationships, to digest huge volumes of cross-cultural information, and to identify and re- spond more quickly to emerging global opportunities. Em- ployees develop a global mindset through self-awareness, opportunities to compare their own mental models with people from other cultures, formal cross-cultural training, and immersion in other cultures.
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CASE STUDY: HY DAIRIES, INC. Syd Gilman read the latest sales figures with a great deal of satisfaction. The vice president of marketing at Hy Dairies, Inc., a large Midwestern milk products manufacturer, was pleased to see that the marketing campaign to improve sag- ging sales of Hy’s gourmet ice cream brand was working. Sales volume and market share of the product had increased significantly over the past two quarters compared with the previous year. The improved sales of Hy’s gourmet ice cream could be credited to Rochelle Beauport, who was assigned to the gour- met ice cream brand last year. Beauport had joined Hy Dairies less than two years ago as an assistant brand manager after leaving a similar job at a food products firm. She was one of the few women of color in marketing management at Hy Dairies and had a promising career with the company. Gilman was pleased with Beauport’s work and tried to let her know this in annual performance reviews. He now had an excellent opportunity to reward her by offering her the re- cently vacated position of market research coordinator. Although technically only a lateral transfer with a modest sal- ary increase, the marketing research coordinator job would give Beauport broader experience in some high-profile work, which would enhance her career with Hy Dairies. Few people were aware that Gilman’s own career had been boosted by working as marketing research coordinator at Hy several years before. Rochelle Beauport had also seen the latest sales figures on Hy’s gourmet ice cream and was expecting Gilman’s call to meet with her that morning. Gilman began the conversation by briefly mentioning the favorable sales figures, and then explained that he wanted Beauport to take the marketing
research coordinator job. Beauport was shocked by the news. She enjoyed brand management and particularly the chal- lenge involved with controlling a product that directly af- fected the company’s profitability. Marketing research coordinator was a technical support position—a “back room” job—far removed from the company’s bottom-line activities. Marketing research was not the route to top management in most organizations, Beauport thought. She had been sidelined. After a long silence, Beauport managed a weak, “Thank you, Mr. Gilman.” She was too bewildered to protest. She wanted to collect her thoughts and reflect on what she had done wrong. Also, she did not know her boss well enough to be openly critical. Gilman recognized Beauport’s surprise, which he assumed was her positive response to hearing of this wonderful career opportunity. He, too, had been delighted several years earlier about his temporary transfer to marketing research to round out his marketing experience. “This move will be good for both you and Hy Dairies,” said Gilman as he escorted Beauport from his office. Beauport was preoccupied with several tasks that afternoon but was able to consider the day’s events that evening. She was one of the top women and few minori- ties in brand management at Hy Dairies and feared that she was being sidelined because the company didn’t want women or people of color in top management. Her previ- ous employer had made it quite clear that women “couldn’t take the heat” in marketing management and tended to place women in technical support positions after a brief term in lower brand management jobs. Obviously Syd
made HBOG a poor investment for AmOil. AmOil’s CEO remained silent for most of the meeting, which CanOil executives interpreted as an implied agreement to proceed to buy AmOil stock on the market. But when CanOil launched the stock purchase a month later, AmOil’s CEO was both surprised and outraged. He thought he had given the CanOil executives the cold shoulder, remaining silent to show his disinterest in the deal. The misunderstanding nearly bankrupted CanOil because AmOil reacted by protecting its stock. What per- ceptual problem(s) likely occurred that led to this misunderstanding?
5. What mental models do you have about attending a college or university lecture? Are these mental models helpful? Could any of these mental models hold you back from achieving the full benefit of the lecture?
6. During a diversity management session, a manager suggests that stereotypes are a necessary part of working with others. “I have to make assumptions about what’s in the other person’s head, and stereotypes help me do that,” she
explains. “It’s better to rely on stereotypes than to enter a working relationship with someone from another culture without any idea of what they believe in!” Discuss the merits of and problems with the manager’s statement.
7. Describe how a manager or coach could use the process of self-fulfilling prophecy to enhance an individual’s performance.
8. Self-awareness is increasingly recognized as an important ingredient for effective leadership. Suppose that you are responsible for creating a leadership development program in a government organization. What activities or processes would you introduce to help participants in this program constructively develop a better self-awareness of their personality, values, and personal biases?
9. Almost everyone in a college or university business program has developed some degree of a global mindset. What events or activities in your life have helped nurture the global mindset you have developed so far? What actions can you take now, while still attending school, to further develop your global mindset?
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TEAM EXERCISE: PERSONAL AND ORGANIZATIONAL STRATEGIES FOR DEVELOPING A GLOBAL MINDSET PURPOSE This exercise is designed to help you under- stand and discover ways to improve your global mindset.
MATERIALS None.
INSTRUCTIONS
Step 1: Students are organized into teams, in which the fol- lowing questions will be discussed. Teams will prepare a list of global mindset–enhancing activities organized around two categories: (1) organizationally generated activities and (2) personal development activities.
• Organizationally generated activities: What organiza- tional practices—interventions or conditions created de- liberately by the organization—have you experienced or know that others have experienced that develop a person’s
global mindset? Be specific in your description of each activity and, where possible, identify the element(s) of global mindset that improve through that activity.
• Personal development activities: Suppose someone asked you what personal steps they could take to develop a global mindset. What would you recommend? Think about ways that you have personally developed your (or have good knowledge of someone else who has developed their) global mindset. Your suggestions should say what specific elements of global mindset are improved through each activity.
Step 2: The class debriefs, where teams are asked to de- scribe specific personal or organizational activity to others in the class. Look for common themes, as well as challenges people might face while trying to develop a global mindset.
WEB EXERCISE: DIVERSITY & STEREOTYPING ON DISPLAY IN CORPORATE WEBSITES PURPOSE This exercise is designed to help you diagnose evidence of diversity and stereotyping in corporate websites.
MATERIALS Students need to complete their research for this activity prior to class, including selecting one or more large or medium-sized public or private organizations and retrieving sample images of people from the organization’s website.
INSTRUCTIONS The instructor may have students work alone or in groups for this activity. Students will select one or more medium-large sized public or private organizations. Students will closely examine images in the selected compa- ny’s website in terms of how women, visible minorities, peo- ple with disabilities, Native peoples, and older employees and clients are portrayed. Specifically, students should be pre- pared to discuss and provide details in class regarding: 1. The percentage of images showing (i.e., visual representa-
tions of ) women, visible minorities, people with
disabilities, Native peoples, and older employees and clients. Students should also be sensitive to the size and placement of these images in the website or documents therein.
2. The roles in which women, visible minorities, people with disabilities, Native peoples, and older employees and clients are depicted. For example, are women shown more in traditional or non-traditional occupations and roles in these websites?
3. Pick one or more of the best examples of diversity on display and one stereotypic image you can find from the website to show in class, either in printed form, or as a web link that can be displayed in class.
Gilman and Hy Dairies were following the same game plan. Gilman’s comments that the coordinator job would be good for her was just a nice way of saying that Beauport couldn’t go any further in brand management at Hy Dairies. Beauport now faced the difficult decision of whether to confront Gilman and try to change Hy Dairies’ sexist and possibly racist practices or to leave the company.
Discussion Questions
1. Apply your knowledge of stereotyping and social identity theory to explain what went wrong here.
2. What other perceptual errors are apparent in this case study?
3. What can organizations do to minimize misperceptions in these types of situations?
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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
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.
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.
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4 Workplace Emotions, Attitudes, and Stress
le a
rn in
g o
b je
ct iv
e s After reading this chapter, you should be able to:
4-1 Explain how emotions and cognition (logical thinking) influence attitudes and behavior.
4-2 Discuss the dynamics of emotional labor and the role of emotional intelligence in the workplace.
4-3 Summarize the consequences of job dissatisfaction, as well as strategies to increase organizational (affective) commitment.
4-4 Describe the stress experience and review three major stressors.
4-5 Identify five ways to manage workplace stress.
92
c ha pter
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etBlue flight attendant Steven Slater has had his share of rough days, but one particular flight from Pittsburgh to New York City was more than he could handle. Even before the flight departed, Slater apparently received a bloody gash on his forehead from
an overhead compartment while resolving a luggage space scuffle between two
passengers. One of those passengers then cursed Slater when he sent her
oversized luggage to be checked. As the plane taxied after landing in New York,
the same passenger stood up and demanded that Slater bring her the checked
luggage. She then swore at him, after Slater ordered her to sit down until the plane
had stopped.
That’s when Slater snapped. Grabbing the intercom, he announced a few
colorful words to the misbehaved passenger, then said to the rest: “Those of
you who have shown dignity and respect these last 20 years, thanks for a great
ride. That’s it. I’ve had it.” Slater then grabbed some beer from the trolley,
activated the emergency escape chute, slid down to the tarmac, and calmly
walked to his car.
Slater’s actions were glorified, vilified, and dissected by the media and public
over the next few weeks. Two passengers on that flight said Slater lacked the ability
to work effectively with people, whereas others who know Slater say he is usually
sociable and engaging. One passenger noted that Slater was very pleasant on
previous flights but was disturbed and agitated on that day. Slater claimed his rash
behavior was due to events on that flight, as well as stress about his mother’s illness.
“You can only push people so far,” Slater said recently. “You know, who hasn’t been
overworked and underpaid? Who isn’t stressed?”
Whatever the cause of his behavior, Slater was charged with criminal mischief,
trespassing, and reckless endangerment (deploying the emergency slide could have
injured the ground crew). He was fired from his job and agreed to pay $10,000 to
replace the emergency chute. The incident also produced a new phrase: To “hit the
slide” means to quit your job in a stunning or spectacular way.1
e r N thth
a
J
93
JetBlue flight attendant Steven Slater had more emotional upset than he could handle on a flight from Pittsburgh to New York City, so he bailed out of the plane, and his job, through the emergency slide.
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94 Part Two Individual Behavior and Processes
Steven Slater’s outburst and final exit from a JetBlue flight illustrate several of the topics covered in this chapter. They dramatically show the effects of strong emotions and job dis- satisfaction on employee behavior and customer service. They show how employees are ex- pected to manage their emotions and display specific types of emotions, even in difficult situations. This vignette also highlights the effects of work-related stress, which Steven Slater was experiencing due to both work and nonwork challenges.
This chapter begins by defining and describing emotions and explaining why researchers are so eager to discover how emotions influence attitudes and behavior. Next, we consider the dynamics of emotional labor, followed by the popular topic of emotional intelligence. The specific work attitudes of job satisfaction and organizational commitment are then discussed, including their association with various employee behaviors and work perfor- mance. The final section looks at work-related stress, including the stress experience, three prominent stressors, individual differences in stress, and ways to combat excessive stress.
Emotions in the Workplace Emotions influence almost everything we do in the workplace. This is a strong statement, and one that you would rarely find a dozen years ago among organizational behavior (OB) experts. Most OB theories still assume that a person’s thoughts and actions are governed primarily or exclusively by logical thinking (called cognition).2 Yet groundbreaking neurosci- ence discoveries have revealed that our perceptions, attitudes, decisions, and behavior are influenced by emotions as well as cognitions.3 In fact, emotions may have a greater influence because they often occur before cognitive processes and, consequently, influence the latter. By ignoring emotionality, many theories have overlooked a large piece of the puzzle about human behavior in the workplace.
Emotions are physiological, behavioral, and psychological episodes experienced toward an object, person, or event that create a state of readiness.4 These “episodes” are very brief events that typically subside or occur in waves lasting from milliseconds to a few minutes. Emotions are directed toward someone or something. For example, we experience joy, fear, anger, and other emotional episodes toward tasks, customers, or a software program we are using. This differs from moods, which are not directed toward anything in particular and tend to be longer-term emotional states.5
Emotions are experiences. They represent changes in our physiological state (e.g., blood pressure, heart rate), psychological state (e.g., thought process), and behavior (e.g., facial ex-
pression).6 Most of these emotional reactions are subtle and occur without our awareness. This is an important point because the topic of emotions often conjures up images of people “getting emotional.” In reality, most emotions are fleeting, low-intensity events that influence our behavior without conscious awareness.7 Finally, emotions put us in a state of readiness. When we get worried, for example, our heart rate and blood pressure increase to make our body better prepared to en- gage in fight or flight. Strong emotions also trigger our conscious awareness of a threat or opportunity in the external environment.
TYPES OF EMOTIONS People experience many emotions and various combinations of emo- tions, but all of them have two common features, illustrated in Ex- hibit 4.1.8 One feature is that all emotions have an associated valence (called core affect), signaling that the perceived object or event should be approached or avoided. In other words, all emotions evaluate en- vironmental conditions as good or bad, helpful or harmful, positive or negative, and so forth. Furthermore, negative emotions tend to
LO 4-1
Credit: © Ted Goff.
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Chapter Four Workplace Emotions, Attitudes, and Stress 95
generate stronger levels of activation than do positive emotions.9 Fear and anger, for in- stance, are more intense experiences than are joy and delight, so they have a stronger effect on our actions. This valence asymmetry likely occurs because negative emotions protect us from harm and are therefore more critical for our survival.
The second feature is that emotions vary in their level of activation. By definition, emotions put us in a state of readiness and, as we discuss in the next chapter, are the primary source of individual motivation. Some emotional experiences, such as those experienced by JetBlue flight attendant Steve Slater (see the opening case study), are strong enough to consciously motivate us to act without careful thought. Most emotional experiences are more subtle, but even they activate enough to make us more aware of our environment.
emotions
Physiological, behavioral, and psychological episodes experienced toward an object, person, or event that create a state of readiness.
attitudes
The cluster of beliefs, assessed feelings, and behavioral intentions toward a person, object, or event (called an attitude object).
Aroused Astonished Stimulated
Quiet Tranquil
Still
Negative
Low
High
Positive
High-activation negative emotions
High-activation positive emotions
Low-activation negative emotions
Evaluation
A c
ti v a
ti o
n
Low-activation positive emotions
Unhappy Sad
Gloomy
Happy Cheerful Delighted
Bored Tired
Drowsy
Relaxed Content
Calm
Distressed Fearful Jittery
Enthusiastic Elated Excited
EXHIBIT 4.1
Circumplex Model of Emotions Source: Adapted from J. A. Russell, “Core Affect and the Psychological Construction of Emotion,” Psychologi- cal Review 110, no. 1 (2003): 145–72; M. Yik, J. A. Russell, and J. H. Steiger. “A 12-Point Circumplex Structure of Core Affect,” Emotion 11, no. 4 (2011): 705–31.
Visit connect.mcgrawhill.com for activities and test questions to help you learn about the model of emotions, attitudes, and behavior.
EMOTIONS, ATTITUDES, AND BEHAVIOR To understand how emotions influence our thoughts and be- havior in the workplace, we first need to know about atti- tudes. Attitudes represent the cluster of beliefs, assessed feelings, and behavioral intentions toward a person, object, or event (called an attitude object).10 Attitudes are judgments, whereas emotions are experiences. In other words, attitudes
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96 Part Two Individual Behavior and Processes
involve evaluations of an attitude object, whereas emotions operate as events, usually without our awareness. Attitudes might also operate nonconsciously, but we are usually aware of and consciously think about those evaluations. Another distinction is that we experience most emo- tions very briefly, whereas our attitude toward someone or something is more stable over time.11
Until recently, experts believed that attitudes could be understood just by the three cog- nitive components illustrated on the left side of Exhibit 4.2: beliefs, feelings, and behavioral intentions. Now evidence suggests that a parallel emotional process is also at work, shown on the right side of the exhibit.12 Using attitude toward mergers as an example, let’s look more closely at this model, beginning with the traditional cognitive perspective of attitudes.
• Beliefs. These are your established perceptions about the attitude object—what you believe to be true. For example, you might believe that mergers reduce job security for employees in the merged firms or that mergers increase the company’s competitiveness in this era of globalization. These beliefs are perceived facts that you acquire from expe- rience and other forms of learning. Each of these beliefs also has a valence; that is, we have a positive or negative feeling about each belief (e.g., better job security is good).
• Feelings. Feelings represent your conscious positive or negative evaluations of the attitude object. Some people think mergers are good; others think they are bad. Your like or dislike of mergers represents your assessed feelings. According to the traditional cognitive perspective of attitudes (left side of the model), feelings are calculated from your beliefs about mergers and the associated feelings about those beliefs. If you believe that mergers typically have negative consequences such as lay- offs and organizational politics, you will form negative feelings toward mergers in general or about a specific planned merger in your organization. However, recent evidence suggests the opposite can also occur: Your feelings about something can cause you to change your feelings about specific beliefs regarding that target.13 For example, you might normally enjoy the challenge of hard work, but if you dislike your boss and he or she has high performance expectations, then you could develop negative feelings about hard work.
Behavior
Attitude
Emotional episodes
Perceived environment
Emotional process
Behavioral intentions
Feelings
Beliefs
Cognitive process
EXHIBIT 4.2
Model of Emotions, Attitudes, and Behavior
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Chapter Four Workplace Emotions, Attitudes, and Stress 97
• Behavioral intentions. Intentions represent your motivation to engage in a particular behavior regarding the attitude object.14 Upon hearing that the company will merge with another organization, you might become motivated to look for a job elsewhere or possibly to complain to management about the merger decision. Your feelings to- ward mergers motivate your behavioral intentions, and which actions you choose de- pends on your past experience, personality, and social norms of appropriate behavior.
Several contingencies weaken the beliefs–feelings–intentions–behavior relationship. First, people with the same beliefs might form quite different feelings toward the attitude object because they have different valences for those beliefs. Two employees might hold the com- mon belief that their boss pushes employee performance, yet they form different feelings toward their boss because one dislikes being pushed to perform better, whereas the other employee appreciates this style of leadership. Second, people with the same feelings toward the attitude object might develop different behavioral intentions. Suppose that two employ- ees equally dislike their boss. One employee complains to the union or upper management, while the other employee looks for a job elsewhere. They respond differently because of their unique experiences, personal values, self-concepts, and the like. Later in this chapter, we describe the four main responses to dissatisfaction and other negative attitudes. Third, people with the same behavioral intentions might nevertheless behave differently. For example, two people might intend to quit because they dislike their boss, but only one does so because the other employee could not find better job opportunities.
How Emotions Influence Attitudes and Behavior The cognitive model has dominated attitude research for decades, yet we now know that emotions also have a central role in forming and changing employee attitudes.15 The right side of Exhibit 4.2 illustrates this process, which (like the cognitive process) also begins with perceptions of the world around us. Our brain tags incoming sensory information with emotional markers based on a quick and imprecise evaluation of whether that information supports or threatens our in- nate drives. These markers are not calculated feelings; they are automatic and nonconscious emotional responses based on very thin slices of sensory information.16
Consider your attitude toward mergers. You might experience worry, nervousness, or relief upon learning that your company intends to merge with a competitor. The fuzzy dots on the right side of Exhibit 4.2 illustrate the numerous emotional episodes you experience upon hear- ing the merger announcement, subsequently thinking about the merger, discussing the merger with coworkers, and so on. These emotions are transmitted to the reasoning process, where they are logically analyzed along with other information about the attitude object.17 Thus, while you are consciously evaluating whether the merger is good or bad, your emotions are already send- ing valent (good–bad) signals, which then sway your conscious evaluation. In fact, we often deliberately “listen in” on our emotions to help us consciously decide whether to support or oppose something.18
Putting more fun into the workplace has helped Admiral Group become the best company to work for in the United Kingdom. The insurance company’s 6,000 employees enjoy a supportive and family-like work culture, receiving company stock every six months, and having plenty of fun. If those features aren’t enough, Admiral also has a “Ministry of Fun” committee that introduces plenty of positive emotions through Nintendo Wii competitions, inter-departmental Olympics, and other fun activities. “We have a simple philosophy at Admiral: if people like what they do, they’ll do it better,” says Admiral CEO Henry Engelhardt. “We know that our people spend a lot of time in work and we want to make sure that they enjoy this time.”21
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98 Part Two Individual Behavior and Processes
The influence of both cognitive reasoning and emotions on attitudes is most apparent when they conflict. People occasionally experience this mental tug-of-war, sensing that something isn’t right even though they can’t think of any logical reason to be concerned. This conflicting expe- rience indicates that the person’s logical analysis of the situation (left side of Exhibit 4.2) can’t identify reasons to support the emotional reaction (right side of Exhibit 4.2).19 Should we pay attention to our emotional response or our logical analysis? This question is not easy to answer, but some studies indicate that while executives tend to make quick decisions based on their gut feelings (emotional response), the best decisions tend to occur when executives spend time log- ically evaluating the situation.20 Thus, we should pay attention to both the cognitive and emo- tional sides of the attitude model, and hope they agree most of the time!
Generating Positive Emotions at Work Some companies seem to be well aware of the dual cognitive–emotional attitude process, because they try to inject more positive expe- riences in the workplace.22 At Dixon Schwabl, employees enjoy outdoor barbecues, golf chip- ping contests, water balloon toss events, Halloween pumpkin-decorating contests, a padded primal scream room to release tension, and a spiral slide for those who want to descend more quickly to the main floor. “Fun is not just a word here, it is a way of life!” wrote one employee at the 75-person marketing and public relations firm in Rochester, New York.23 Similarly, employees at Razer’s Singapore offices zoom around on scooters and pit their gaming skills against each other on the state-of-the-art online gaming console. “Sometimes I can’t believe that I have been here for seven months already,” admits one employee at the gaming periph- erals company. “I guess you don’t feel the time passing when you are having so much fun.”24
Some critics might argue that the organization’s main focus should be to create positive emotions through the job itself as well as natural everyday occurrences such as polite customers and supportive coworkers. Still, most people perform work that produces some negative emo- tions, and research has found that humor and fun at work—whether natural or contrived— can potentially offset some of the negative experiences.25 Overall, corporate leaders need to keep in mind that emotions shape employee attitudes, and as we will discuss later, attitudes influence various forms of work-related behavior.
One last comment about Exhibit 4.2: Notice the arrow from the emotional episodes to behavior. It indicates that emotions directly (without conscious thinking) influence a per- son’s behavior. This occurs when we jump suddenly if someone sneaks up on us. It also oc- curs in everyday situations because even low-intensity emotions automatically change our facial expressions. These actions are not carefully thought out. They are automatic emo- tional responses that are learned or hardwired by heredity for particular situations.28
Cognitive Dissonance Imagine that you have just signed a contract for new elec- tronic white boards to be installed throughout the company’s meeting rooms. The deal was
debating point IS HAVING FUN AT WORK REALLY A GOOD IDEA?
“Fun at work” has become such a hot business fad that compa- nies without a “fun” committee are considered insensitive task masters. Having fun at work can improve employee attitudes in many situations, but are special fun events really necessary or beneficial? Some critics vote “No!” They argue that contrived fun events at work can backfire.26 Some types of fun aren’t fun at all to some people. In fact, most employees might be offended by the silliness of some activities contrived by management or a few staff. Others resent having fun forced on them. One expert recently warned:
“Once the idea of fun is formally institutionalized from above, it can lead to employees becoming resentful. They feel patronized and condescended, and it breeds anger and frustration.” The meaning and value of fun at work might also vary across generations; what works for Millennials could backfire for Baby Boomers, and vice versa. Another concern is that fun-focused companies might take their eye off the bottom line. “At the end of the day, you have to make money to stay here,” says Mike Pitcher, CEO of LeasePlan USA (which does have a “fun” committee). “If work was [all] fun, they’d call it fun.”27
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Chapter Four Workplace Emotions, Attitudes, and Stress 99
What is your emotional personality? Visit connect.mcgrawhill.com to assess your emotional trait tendencies.
expensive but, after consulting several staff, you felt that the technology would be valuable in this electronic age. Yet you felt a twinge of regret soon after signing the contract. This emotional experience is cognitive dissonance, which occurs when people perceive that their beliefs, feelings, and behavior are incongruent.29 This inconsistency generates emotions (such as feeling hypocritical) that motivate the person to create more consistency by chang- ing one or more of these elements.
Why did you experience cognitive dissonance after purchasing the electronic white boards? Perhaps you remembered that some staff wanted flexibility, whereas the white boards require special markers and computer software. Or maybe you had a fleeting realization that buying electronic white boards costing several times more than traditional white boards is inconsistent with your personal values (and company culture) of thrift and value. Whatever the reason, the dissonance occurs because your attitude (being cost conscious is good) is inconsistent with your behavior (buying expensive white boards). Like most other people, you like to think of yourself (and be viewed by others) as rational and logical. You experience dissonance because this purchase decision is contrary to your attitudes about being frugal and maximizing value.
How do we reduce cognitive dissonance?30 Reversing the behavior might work, but few behaviors can be undone. In any event, dissonance still exists because others know about the behavior and that you performed it voluntarily. It would be too expensive to remove the electronic white boards after they have been installed, and in any event, coworkers already know that you made this purchase and did so willingly.
More often, people reduce cognitive dissonance by changing their beliefs and feelings. One dissonance-reducing strategy is to develop more favorable attitudes toward specific features of the decision, such as forming a more positive opinion about the white boards’ capacity to store whatever is written on them. People are also motivated to discover positive features of the de- cision they didn’t notice early (e.g., the boards can change handwriting into typed text) and to discover subsequent problems with the alternatives they didn’t choose (e.g., few traditional boards can be used as projection screens). A third strategy is more indirect; rather than play down the high price of the electronic white boards, you reduce dissonance by emphasizing how your other decisions have been frugal. This framing compensates for your expensive white board fling and thereby maintains your self-concept as a thrifty decision maker. Each of these mental acrobatics maintains some degree of consistency between the person’s behavior (buying expensive white boards) and attitudes (being thrifty, appreciating good value).
Emotions and Personality Our coverage of the dynamics of workplace emotions wouldn’t be complete unless we mentioned that emotions are also partly determined by a person’s personality, not just workplace experiences.31 Some people experience positive emo- tions as a natural trait. People with more positive emotions typically have higher emotional stability and are extroverted (see Chapter 2). Those who experience more negative emotions tend to have higher neuroticism (lower emotional stability) and are introverted. Positive and negative emotional traits affect a person’s attendance, turnover, and long-term work atti- tudes.32 While positive and negative personality traits have some effect, other research con- cludes that the actual situation in which people work has a noticeably stronger influence on their attitudes and behavior.33
cognitive dissonance
An emotional experience caused by a perception that our beliefs, feelings, and behavior are incongruent.
LO 4-2
Managing Emotions at Work Whether as a JetBlue flight attendant or chief executive officer, people are expected to manage their emotions in the workplace. They must conceal their frustration when serving an irritating customer, display compassion to an ill patient, and hide their boredom in a long meeting with
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100 Part Two Individual Behavior and Processes
other executives. These are all forms of emotional labor—the effort, plan- ning, and control needed to express organizationally desired emotions during interpersonal transactions.34 Almost everyone is expected to abide by display rules—norms or explicit rules requiring us within our roles to display specific emotions and to hide other emotions. Emotional labor demands are higher in jobs requiring a variety of emotions (e.g., anger as well as joy) and more in- tense emotions (e.g., showing delight rather than smiling weakly), as well as in jobs where interaction with clients is frequent and longer. Emotional labor also increases when employees must precisely rather than casually abide by the display rules.35 This particularly occurs in the service industries, where em- ployees have frequent face-to-face interaction with clients.
EMOTIONAL DISPLAY NORMS ACROSS CULTURES Norms about displaying or hiding your true emotions vary considerably across cultures.37 One major study points to Ethiopia, Japan, and Austria (among others) as cultures that discourage emotional expression. Instead, people are expected to be subdued, have relatively monotonic voice intona- tion, and avoid physical movement and touching that display emotions. In contrast, cultures such as Kuwait, Egypt, Spain, and Russia allow or encour- age more vivid displays of emotions and expect people to act more consis- tently with their true emotions. In these cultures, people are expected to more honestly reveal their thoughts and feelings, be dramatic in their con- versational tones, and be animated in their use of nonverbal behaviors. For example, 81 percent of Ethiopians and 74 percent of Japanese agreed that it is considered unprofessional to express emotions overtly in their culture, whereas 43 percent of Americans, 33 percent of Italians, and only 19 per- cent of Spaniards, Cubans, and Egyptians agreed with this statement.38
EMOTIONAL DISSONANCE Most jobs expect employees to engage in some level of emotional labor, such as displaying courtesy to unruly passengers or maintaining civility to coworkers. Often, employees are supposed to show emotions that are quite different from the emotions they actually experience at that moment. This incongruence produces an emotional tension called emotional dissonance. Employees often deal with these discrepancies by engaging in surface acting; they pretend that they feel the expected emotion even though they actually experience a different emotion.
One problem with surface acting is that it can lead to higher stress and burnout.39 By definition, emotional labor requires effort and attention, which consume personal energy. Emotional labor also potentially requires people to be something they are not, which can lead to psychological separation from the self. These problems are greater when employees need to frequently display emotions that oppose their genuine emotions. A second problem with
surface acting is that it is difficult to pretend to feel a partic- ular set of emotions. A genuine emotion automatically acti- vates a complex set of facial muscles and body positions, all of which are difficult to replicate when pretending to have these emotions. Meanwhile, our true emotions tend to re- veal themselves as subtle gestures, usually without our awareness. More often than not, observers see when we are faking and sense that we feel a different emotion.40
Employees can somewhat reduce psychological damage caused by surface acting by viewing their act as a natural part
Managing emotions is an important part of flight attendant training at the Malaysia Airlines Academy in Kuala Lumpur. Students learn how to smile, make eye contact, and keep their chin up at a level that displays confidence without arrogance. Students receive training in voice enrichment and public speaking. They also learn about personal grooming as well as different formalities of behavior in countries where the airline flies. The academy even has large mirrors on some walls so students constantly see how their facial expressions appear to others.36
emotional labor
The effort, planning, and control needed to express organizationally desired emotions during interpersonal transactions.
emotional dissonance
The psychological tension experienced when the emotions people are required to display are quite different from the emotions they actually experience at that moment.
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Chapter Four Workplace Emotions, Attitudes, and Stress 101
of their role. Flight attendants can remain pleasant to unruly passengers more easily when they define themselves by their customer service skill. By adopting this view, their faking is not depri- vation of personal self-worth. Instead, it is demonstration of their skill and professionalism. The dissonant interactions are accomplishments rather than dreaded chores.41 Another strategy is to engage in deep acting rather than surface acting.42 Deep acting involves visualizing reality differ- ently, which then produces emotions more consistent with the required emotions. Faced with an angry passenger, a flight attendant might replace hostile emotions with compassion by view- ing the passenger’s behavior as a sign of his or her discomfort or anxiety. Deep acting requires considerable emotional intelligence, which we discuss next.
Awareness of own emotions
Management of own emotions
Awareness of others’ emotions
Yourself
Recognition of emotions
Abilities
Regulation of emotions
Others
Management of others’ emotions
EXHIBIT 4.3
Dimensions of Emotional Intelligence Sources: D. Goleman, “An EI-Based Theory of Performance,” in The Emo- tionally Intelligent Workplace, ed. C. Cherniss and D. Goleman (San Francisco: Jossey-Bass, 2001), p. 28; Peter J. Jordan and Sandra A. Lawrence, “Emotional Intelligence in Teams: De- velopment and Initial Validation of the Short Version of the Workgroup Emo- tional Intelligence Profile (WEIP-S),” Journal of Management & Organization 15 (2009): 452–69.
emotional intelligence
A set of abilities to perceive and express emotion, assimilate emotion in thought, understand and reason with emotion, and regulate emotion in oneself and others.
Are you in touch with your emotions? Visit connect.mcgrawhill. com to assess how well you know your emotional intelligence.
Emotional Intelligence Buckman Laboratories International, Inc., pays close attention to the emotional intelligence of its job applicants and employees. The Memphis, Tennessee, chemical company has iden- tified key emotional intelligence competencies of team players, which are then applied to job interviews. “By defining the concrete behaviors that demonstrate emotional intelligence, we can better focus our behavioral interviewing questions,” explains Buckman’s head of human resources. The company also evaluates its leaders on 19 leadership competencies, “many of which are based on the ability of the leader to perceive, influence, and manage the emotions of themselves and others.”43
Buckman Labs is among the growing flock of companies that consider emotional intelligence (EI) an important skill in effective employees. Emotional intelligence in- cludes a set of abilities to perceive and express emotion, assimilate emotion in thought, understand and reason with emotion, and regulate emotion in oneself and others.44 Although several emotional intelligence dimensions have been proposed over the past decade, the research findings seem to be converging around the four-quadrant model shown in Exhibit 4.3.45 This model organizes EI into four dimensions representing the
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102 Part Two Individual Behavior and Processes
recognition of emotions in ourselves and in others, as well as the regulation of emotions in ourselves and in others.
• Awareness of own emotions. This is the ability to perceive and understand the mean- ing of your own emotions. You are more sensitive to subtle emotional responses to events and understand their message. Self-aware people are better able to eavesdrop on their own emotional responses to specific situations and to use this awareness as conscious information.46
• Management of own emotions. Emotional intelligence includes the ability to manage your own emotions, something that we all do to some extent. We keep disruptive impulses in check. We try not to feel angry or frustrated when events go against us. We try to feel and express joy and happiness toward others when the occasion calls for these emotional displays. We try to create a second wind of motivation later in the workday. Notice that management of your own emotions goes beyond displaying behaviors that represent desired emotions in a particular situation. It includes gener- ating or suppressing emotions. In other words, the deep acting described earlier re- quires high levels of the self-management component of emotional intelligence.
• Awareness of others’ emotions. This dimension refers to the ability to perceive and un- derstand the emotions of other people. To a large extent, awareness of other people’s emotions is represented by empathy—having an understanding of and sensitivity to the feelings, thoughts, and situations of others (see Chapter 3). This ability includes understanding the other person’s situation, experiencing his or her emotions, and knowing his or her needs, even though unstated. Awareness of others’ emotions extends beyond empathy to include being organizationally aware, such as sensing office politics and understanding social networks.
• Management of others’ emotions. This dimension of EI involves managing other peo- ple’s emotions. It includes consoling people who feel sad, emotionally inspiring team members to complete a class project on time, getting strangers to feel comfortable working with you, and managing dysfunctional emotions among staff who experi- ence conflict with customers or other employees.
These four dimensions of emotional intelligence form a hierarchy.47 Awareness of your own emotions is lowest, because you need awareness to engage in the higher levels of emo- tional intelligence. You can’t manage your own emotions if you don’t know what they are (i.e., low self-awareness). Managing other people’s emotions is the highest level of EI, be- cause this ability requires awareness of your own and others’ emotions. To diffuse an angry conflict between two employees, for example, you need to understand the emotions they are experiencing and manage your emotions (and display of emotions). To manage your own emotions, you also need to be aware of your current emotions.
EMOTIONAL INTELLIGENCE OUTCOMES AND TRAINING Does emotional intelligence make a difference in employee performance and well-being? A few OB experts question the usefulness of the emotional intelligence concept, claiming that there is a lack of agreement on its definition and that existing concepts such as personality and general intelligence can be used instead.48 However, a consensus is slowly emerging around the meaning of EI, and there is considerable research suggesting that this concept does help us understand what goes on in social relations.
Most jobs involve social interaction with coworkers or external stakeholders, so employ- ees need emotional intelligence to work effectively.49 Research suggests that people with high EI are better at interpersonal relations, perform better in jobs requiring emotional la- bor, are superior leaders, make better decisions involving social exchanges, are more success- ful in many aspects of job interviews, and are better at organizational learning activities. For example, leaders need substantial emotional intelligence, because their work involves regu- lating their own emotions as part of emotional labor (e.g., showing patience to employees
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Chapter Four Workplace Emotions, Attitudes, and Stress 103
even when they might feel frustrated), as well as regulating the emotions of others (e.g., helping staff members feel optimism for the future even though they just lost an important contract). However, emotional intelligence does not improve some forms of performance, such as tasks that require minimal social interaction.50
Given the potential value of emotional intelligence, it’s not surprising that Buckman Labs and other organizations try to measure this competency in job applicants. The United States Air Force (USAF) has a long history of screening applicants on the basis of their emotional intelligence. For instance, EI is one factor considered for entry into the elite para-rescue jumper (PJ) train- ing program, which costs $250,000 per graduate and has an 80 percent failure rate. The USAF’s research showed that trainees who scored highly on several emotional intelligence dimensions were two or more times as likely to complete the PJ program successfully.52
Several studies also have found that companies can increase employees’ emotional intelligence through training programs de- signed for that purpose.53 For instance, staff members at a resi- dence for people with intellectual disabilities in the Netherlands completed an EI training program where they learned about the concept, reviewed feedback on their initial EI test scores, applied EI dimensions to case studies, developed two personal goals to improve their EI profile, and later received professional feedback based on videos showing them meeting with difficult clients. Generally, employees improve their emotional intelligence through awareness of the concept, self-awareness of their EI scores, and coaching and other forms of feedback. Emotional in-
telligence also increases with age; it is part of the process called maturity. So far, this chapter has introduced the model of emotions and attitudes, as well as emo-
tional intelligence as the means by which we manage emotions in the workplace. The next two sections look at two specific attitudes: job satisfaction and organizational commitment. These two attitudes are so important in our understanding of workplace behavior that some experts suggest the two combined should be called “overall job attitude.”54
Job Satisfaction Probably the most studied attitude in organizational behavior is job satisfaction, a person’s evaluation of his or her job and work context.55 It is an appraisal of perceived job character- istics, work environment, and emotional experiences at work. Satisfied employees have a favorable evaluation of their jobs, based on their observations and emotional experiences. Job satisfaction is best viewed as a collection of attitudes about different aspects of the job and work context. You might like your coworkers but be less satisfied with your workload, for instance.
How satisfied are employees at work? The answer depends on the person, the workplace, and the country. Global surveys, such as the one shown in Exhibit 4.4, indicate with some consistency that job satisfaction tends to be highest in Denmark, Norway, and other Nordic countries, as well as in India, Mexico, the United Kingdom, and the United States. The lowest levels of overall job satisfaction are usually recorded in Hungary and several Asian countries (e.g., Japan, Mainland China).56 Other surveys report that more than four out of five working Americans are moderately or very satisfied with their jobs, a level that has been consistent for the past three decades.57
Based on a recent survey of its graduates, the University of South Florida College of Medicine concluded that emotional intelligence training would help its students perform their job better. “We’ve created a lot of doctors that are like House,” says USF medical college Dean Stephen Klasko, referring to the fictional television physician with the caustic interpersonal style. Now, after two years at USF’s medical school, a select group of students spend two years at Lehigh Valley Health Network in Pennsylvania, one of the country’s top hospitals. Along with its advanced medical training, the Lehigh program includes special coaching and role modeling to help students develop their emotional intelligence. “You have to have an emotionally intelligent, collaborative, interdisciplinary team practicing if you want young trainees to adopt that as their model,” explains the Lehigh CEO, Ronald Swinfard.51
LO 4-3
job satisfaction
A person’s evaluation of his or her job and work context.
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104 Part Two Individual Behavior and Processes
Can we conclude from these surveys that employees in Denmark, Norway, India, and the United States are happy at work? Possibly, but not as much as these statistics suggest. One problem is that surveys often use a single direct question, such as “How satisfied are you with your job?” Many dissatisfied employees are reluctant to reveal their feelings in a direct question, because this is tantamount to admitting that they made a poor job choice and are not enjoying life. There is some evidence that overall job satisfaction scores are inflated. Surveys that report high overall job satisfaction also have found that most employees are dissatisfied with several aspects of their job, including how much they are paid, promotion opportunities, and recognition for work accomplishments. Furthermore, studies report that a large percentage of employees plan to look for work within the next year or would leave their current employer if the right opportunity came along.59 In summary, employees in the United States, Denmark, India, and other countries have fairly high job satisfaction, but probably not as much as they claim in the overall ratings.
A second problem is that cultural values make it difficult to compare job satisfaction across countries. People in China and Japan tend to express subdued emotions in public, and there is evidence that they also avoid extreme survey ratings such as “very satisfied.” A third problem is that job satisfaction changes with economic conditions. Employees with the highest job satisfaction in current surveys tend to be in countries where the economies are chugging along quite well.60
0%
10%
20%
30%
40%
50%
60%
70%
90%
Japan Hungary China Chile United States
United Kingdom
Norway DenmarkMexico India
80% Satisfied
Very satisfied
40%
9%
47%
8%
44%
15%
39%
31%
48%
24%
47%
31%
45%
35%
46%
38%
44%
41%
30%
4%
EXHIBIT 4.4 Job Satisfaction in Selected Countries58
Note: Percentage of employees in each country who are satisfied or very satisfied in general working for their current employer. Survey data collected in 2012 for Randstad Holdings nv, with a minimum of 400 employees in each country.
Visit connect.mcgrawhill.com for activities and test questions to help you learn about the EVLN model and other job satisfaction concepts.
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Chapter Four Workplace Emotions, Attitudes, and Stress 105
JOB SATISFACTION AND WORK BEHAVIOR Brad Bird pays a lot of attention to job satisfaction. “In my experience, the thing that has the most significant impact on a budget—but never shows up in a budget—is morale,” ad- vises Bird, who has directed several award-winning animation and live-action films at Pixar Animation Studios and Walt Disney Studios. “If you have low morale, for every dollar you spend, you get 25 cents of value. If you have high morale, for every dollar you spend, you get about $3 dollars of value.”61
Brad Bird’s opinion about the importance of job satisfaction is consistently reflected in the actions of leaders in many companies. Many companies carefully monitor job satisfaction and related employee attitudes, and they actively compete to win best workplace awards. In some firms, executive bonuses depend partly on employee satisfaction ratings. The reason for this attention is simple: Job satisfaction affects many of the individual behaviors introduced in Chapter 2 (task performance, organizational citizenship, quitting, absenteeism).62 A useful template for organizing and understanding the consequences of job dissatisfaction is the exit-voice-loyalty-neglect (EVLN) model. As the name suggests, the EVLN model identi- fies four ways that employees respond to dissatisfaction:63
• Exit. Exit includes leaving the organization, transferring to another work unit, or at least trying to get away from the dissatisfying situation. The traditional theory is that job dissatisfaction builds over time and is eventually strong enough to mo- tivate employees to search for better work opportunities elsewhere. This is likely true to some extent, but the most recent opinion is that specific “shock events” quickly energize employees to think about and engage in exit behavior. For exam- ple, the emotional reaction you experience to an unfair management decision or a conflict episode with a coworker motivates you to look at job ads and speak to friends about job opportunities where they work. This begins the process of re- aligning your self-concept more with another company than with your current employer.64
• Voice. Voice is any attempt to change, rather than escape from, the dissatisfying situ- ation. Voice can be a constructive response, such as recommending ways for manage- ment to improve the situation, or it can be more confrontational, such as filing formal grievances or forming a coalition to oppose a decision.65 In the extreme, some employees might engage in counterproductive behaviors to get attention and force changes in the organization.
• Loyalty. In the original version of this model, loyalty was not an outcome of dissatisfac- tion. Rather, it determined whether people chose exit or voice (i.e., high loyalty re- sulted in voice; low loyalty produced exit).66 More recent writers describe loyalty as an outcome, but in various and somewhat unclear ways. Generally, they suggest that “loy- alists” are employees who respond to dissatisfaction by patiently waiting—some say they “suffer in silence”—for the problem to work itself out or be resolved by others.67
• Neglect. Neglect includes reducing work effort, paying less attention to quality, and increasing absenteeism and lateness. It is generally considered a passive activity that has negative consequences for the organization.
Which of the four EVLN alternatives do employees use? It depends on the person and situation.68 The individual’s personality, values, and self-concept are important factors. For example, people with a high-conscientiousness personality are less likely to engage in neglect and more likely to engage in voice. Past experience also influences which EVLN action is applied. Employees who were unsuccessful with voice in the past are more likely to engage in exit or neglect when experiencing job dissatisfaction in the future. Another factor is loy- alty, as it was originally intended in the EVLN model. Specifically, employees are more likely to quit when they have low loyalty to the company, and they are more likely to engage in voice when they have high loyalty. Finally, the response to dissatisfaction depends on the situation. Employees are less likely to use the exit option when there are few alternative job
exit-voice-loyalty-neglect
(EVLN) model
The four ways, as indicated in the name, that employees respond to job dissatisfaction.
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106 Part Two Individual Behavior and Processes
prospects, for example. Dissatisfied employees are more likely to use voice than the other options when they are aware that other employees are dependent on them.69
JOB SATISFACTION AND PERFORMANCE Is a happy worker a more productive worker? Most corporate leaders likely think so. Yet for most of the past century, organizational behavior scholars have challenged this “happy worker hypothesis,” concluding that job satisfaction minimally affects job performance. Today, OB experts are concluding that maybe the popular saying is correct after all; there is a moderately positive relationship between job satisfaction and performance. In other words, workers tend to be more productive to some extent when they have more positive attitudes toward their job and workplace.70
Why isn’t the job satisfaction–performance relationship even stronger? One reason is that general attitudes (such as job satisfaction) don’t predict specific behaviors very well. As the EVLN model explained, reduced performance (a form of neglect) is only one of four possi- ble responses to dissatisfaction. A second reason is that some employees are tethered to technology or coworkers so much that they have little control over their performance. An assembly line worker, for instance, installs a fixed number of windshields each hour with about the same quality of installation whether he or she is happy or unhappy with the work. A third consideration is that job performance might cause job satisfaction, rather than vice versa.71 Higher performers receive more rewards (including recognition) and consequently are more satisfied than low-performing employees who receive fewer rewards. The connec- tion between job satisfaction and performance isn’t stronger because many organizations do not reward good performance very well.
JOB SATISFACTION AND CUSTOMER SATISFACTION Wegmans Food Markets in Rochester, New York, and HCL Technologies in Noida, India, are on the opposite sides of the planet and in quite different industries, yet they both have the same unusual motto: Employees first, customers second. Why don’t these companies put customers at the top of the stakeholder list? Their rationale is that customer satisfaction is a natural outcome of employee satisfaction. Put differently, it is difficult to keep customers happy if employee morale is low. “We really believe that if you put the employees first, they
Fifteen years ago, DaVita Inc. rebounded from near-bankruptcy with a new name and a more successful way to operate a business. The Denver-based provider of kidney care and dialysis services developed an employee-first culture, in which employees are supported as valued teammates of the corporate “village.” The theory is that happier employees will provide better service to the company’s clients across its 2,000 outpatient centers across the United States. “We decided that if we were to care for our teammates with the same intensity that we cared for our patients, this could be a very unique place,” explains Laura Mildenberger, DaVita’s chief people officer. “The attitude that teammates bring into that clinic affects patients’ quality of care and their quality of life.”73
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Chapter Four Workplace Emotions, Attitudes, and Stress 107
really and truly will take better care of the customer than anybody else,” says Container Store chairman and CEO Kip Tindell.72
These companies are applying the service profit chain model, which proposes that job satisfaction has a positive effect on customer service, which flows on to stockholder financial returns. Exhibit 4.5 diagrams this process. Specifically, workplace practices affect job satis- faction, which influences employee retention, motivation, and behavior. These employee outcomes affect service quality, which then influence customer satisfaction and perceptions of value, customer referrals, and ultimately the company’s profitability and growth. The service profit chain model has considerable research support. However, the benefits of job satisfaction take considerable time to flow through to the organization’s bottom line.74
Behind the service profit chain model are two key explanations for why satisfied employees tend to produce happier and more loyal customers.75 One is that employees are usually in a more positive mood when they feel satisfied with their jobs and working conditions. Employ- ees in a good mood more naturally and frequently display friendliness and positive emotions. When employees have good feelings, their behavior “rubs off ” on most (but not all) customers, so customers feel happier and consequently form a positive evaluation of the service experience (i.e., higher service quality). The effect is also mutual—happy customers make employees happier—which can lead to a virtuous cycle of positive emotions in the service experience.
The second explanation is that satisfied employees are less likely to quit their jobs, so they have better knowledge and skills to serve clients. Lower turnover also enables customers to have the same employees serve them, so there is more consistent service. Some evidence in- dicates that customers build their loyalty to specific employees, not to the organization, so keeping employee turnover low tends to build customer loyalty.
JOB SATISFACTION AND BUSINESS ETHICS Before leaving the topic of job satisfaction, we should mention that job satisfaction is also an ethical issue that influences the organization’s reputation in the community. People spend a large portion of their time working in organizations, and many societies now expect companies to provide work environments that are safe and enjoyable. Indeed, employees in several coun- tries closely monitor ratings of the best companies to work for, an indication that employee satisfaction is a virtue worth considerable goodwill to employers. This virtue is apparent when an organization has low job satisfaction. The company tries to hide this fact, and when morale problems become public, corporate leaders are usually quick to improve the situation.
service profit chain model
A theory explaining how employees’ job satisfaction influences company profitability indirectly through service quality, customer loyalty, and related factors.
Organizational practices
Employee satisfaction
and commitment
Employee motivation
and behavior
Employee retention
Customer satisfaction/ perceived
value
Service quality
Customer loyalty and
referrals
Company profitability and growth
EXHIBIT 4.5 Service Profit Chain Model
Source: This model is based on J. I. Heskett, W. E. Sasser, and L. A. Schlesinger, The Service Profit Chain (New York: The Free Press, 1997); A. J. Rucci, S. P. Kirn, and R. T. Quinn, “The Employee-Customer-Profit Chain at Sears,” Harvard Business Review 76 (1998): 83–97; S. P. Brown and S. K. Lam. “A Meta-Analysis of Relationships Linking Employee Satisfaction to Customer Responses,” Journal of Retailing 84, no. 3 (2008): 243–55.
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108 Part Two Individual Behavior and Processes
Organizational Commitment Organizational commitment represents the other half (with job satisfaction) of what some experts call “overall job attitude.” Affective organizational commitment is the employee’s emotional attachment to, involvement in, and identification with an organization. Affective commitment is a psychological bond whereby one chooses to be dedicated to and responsible for the organization.76 We often think of this feeling as employee loyalty, though some ex- perts argue that loyalty and affective commitment have slightly different meanings.
Affective commitment is often distinguished from continuance commitment, which is a calculative attachment to the organization. This calculation takes two forms.78 One form occurs where an employee has no alternative employment opportunities (e.g., “I dislike working here but there are no other jobs available”). This condition exists where unemployment is high, employees lack sufficient skills to be attractive to other employers, or the employee’s skills are so specialized that there is limited demand for them nearby.
The other form of continuance commitment occurs when leaving the company would be a significant finan- cial sacrifice (e.g., “I hate this place but can’t afford to quit!”). This perceived sacrifice condition occurs when the company offers high pay, benefits, and other forms of economic exchange in the employment relationship, or where quitting forfeits a large deferred financial bonus.
Percentage of employees surveyed in selected countries who say they feel “totally committed” to their employer. More than 134,000 people in 29 countries were surveyed for Kelly Services.
25%
36% 38% 39%
43% 47%
52% 53%
60% 65% 65%
0% Hungary Europe
average Singapore Italy Global
average Asia
average India Poland SwedenNorth
America average
China
15%
30%
45%
60%
75%
Totally Committed: Affective Commitment Around the Planet77
How committed are you to your school? Visit connect.mcgrawhill. com to assess your affective organizational commitment to your school, as well as to assist your learning about organizational commitment.
affective organizational
commitment
An individual’s emotional attachment to, involvement in, and identification with an organization.
continuance commitment
An individual’s calculative attachment to an organization.
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Chapter Four Workplace Emotions, Attitudes, and Stress 109
CONSEQUENCES OF AFFECTIVE AND CONTINUANCE COMMITMENT Affective commitment can be a significant competitive advantage.79 Employees with a strong psychological bond to the organization are less likely to quit their jobs and be absent from work. They also have higher work motivation and organizational citizenship, as well as somewhat higher job performance. Organizational commitment also improves customer satisfaction because long-tenured employees have better knowledge of work practices and because clients like to do business with the same employees. One warning is that employees with very high loyalty tend to have high conformity, which results in lower creativity. There are also cases of dedicated employees who have violated laws to defend the organization. However, most companies suffer from too little rather than too much employee loyalty.
In contrast to the benefits of affective commitment, employees with high levels of contin- uance commitment tend to have lower performance and are less likely to engage in organiza- tional citizenship behaviors. Furthermore, unionized employees with high continuance commitment are more likely to use formal grievances, whereas employees with high affective commitment engage in more cooperative problem solving when employee–employer rela- tions sour.80 Although some level of financial connection may be necessary, employers should not confuse continuance commitment with affective commitment. Employers still need to win employees’ hearts (affective commitment), beyond tying them financially to the organi- zation (continuance commitment).
BUILDING ORGANIZATIONAL COMMITMENT There are almost as many ways to build organizational loyalty as there are topics in this textbook, but here are the most frequently mentioned strategies in the literature:
• Justice and support. Affective commitment is higher in organizations that fulfill their obligations to employees and abide by humanitarian values, such as fairness, courtesy, forgiveness, and moral integrity. These values relate to the concept of organizational justice, which we discuss in the next chapter. Similarly, organizations that support employee well-being tend to cultivate higher levels of loyalty in return.81
• Shared values. The definition of affective commitment refers to a person’s identification with the organization, and that identification is highest when employees believe their values are congruent with the organization’s dominant values. Also, employees experi- ence more comfort and predictability when they agree with the values underlying corpo- rate decisions. This comfort increases their motivation to stay with the organization.82
• Trust. Trust refers to positive expectations one person has toward another person in situations involving risk.83 Trust means putting faith in the other person or group. It is also a reciprocal activity: To receive trust, you must demonstrate trust. Employees identify with and feel obliged to work for an organization only when they trust its leaders. This explains why layoffs are one of the greatest blows to affective commitment; by reducing job security, companies reduce the trust employees have in their em- ployer and the employment relationship.84
• Organizational comprehension. Organizational comprehension refers to how well em- ployees understand the organization, including its strategic direction, social dynam- ics, and physical layout.85 This awareness is a necessary prerequisite to affective commitment because it is difficult to identify with or feel loyal to something that you don’t know very well. Furthermore, lack of information produces uncertainty, and the resulting stress can distance employees from that source of uncertainty (i.e., the organization). The practical implication here is to ensure that employees develop a reasonably clear and complete mental model of the organization. This occurs by giving staff information and opportunities to keep up to date about organizational events, interact with coworkers, discover what goes on in different parts of the orga- nization, and learn about the organization’s history and future plans.86
trust
Positive expectations one person has toward another person in situations involving risk.
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110 Part Two Individual Behavior and Processes
Visit connect.mcgrawhill.com for activities and test questions to help you learn about work-related stress and its management.
• Employee involvement. Employee involvement increases affective commitment by strengthening the employee’s psychological ownership and social identity with the organization.87 Employees feel that they are part of the organization when they par- ticipate in decisions that guide the organization’s future (see Chapter 7). Employee involvement also builds loyalty because granting this power is a demonstration of the company’s trust in its employees.
Organizational commitment and job satisfaction represent two of the most often studied and discussed attitudes in the workplace. Each is linked to emotional episodes and cognitive judgments about the workplace and relationship with the company. Emotions also play an important role in another concept that is on everyone’s mind these days: stress. The final sec- tion of this chapter provides an overview of work-related stress and how it can be managed.
LO 4-4
Work-Related Stress and Its Management When asked if they often feel stressed, most employees these days say “Yes!” Not only do they understand the concept; they claim to have plenty of personal experience with it. Stress is most often described as an adaptive response to a situation that is perceived as challenging or threatening to the person’s well-being.88 It is a physiological and psychological condition that prepares us to adapt to hostile or noxious environmental conditions. Our heart rate increases, muscles tighten, breathing speeds up, and perspiration increases. Our body also moves more blood to the brain, releases adrenaline and other hormones, fuels the system by releasing more glucose and fatty acids, activates systems that sharpen our senses, and con- serves resources by shutting down our immune system. One school of thought suggests that stress is a negative evaluation of the external environment. However, critics of this “cognitive appraisal” perspective point out that stress is more accurately described as an emotional ex- perience, which may occur before or after a conscious evaluation of the situation.89
Whether stress is a complex emotion or a cognitive evaluation of the environment, it has become a pervasive experience in the daily lives of most people. Three out of four Americans (and a similar percentage of people in Germany, Canada, Australia, and the United King- dom) say they frequently or sometimes feel stress in their daily lives. Another recent survey reported that 64 percent of American employees rate their stress as high. More than one-third of adult Canadians report feeling stressed most of the time. And in a survey of 115,000 em- ployees in 33 countries, respondents in Japan reported the most stress-related health com- plaints, followed by Canada, the Ukraine, Finland, Hong Kong, and Hungary.90
Stress is typically described as a negative experience. This is known as distress—the degree of physiological, psychological, and behavioral deviation from healthy functioning. How- ever, some level of stress—called eustress—is a necessary part of life because it activates and motivates people to achieve goals, change their environments, and succeed in life’s chal- lenges. For example, more than two-thirds of 42,000 American employees polled report that on-the-job stress either energizes them or has no effect.91 Our focus is on the causes and management of distress, because it has become a chronic problem in many societies.
GENERAL ADAPTATION SYNDROME The word stress was first used more than 500 years ago to describe the human response to harsh environmental conditions. However, it wasn’t until the 1930s that researcher Hans Selye (often described as the father of stress research) first documented the stress experience, called the general adaptation syndrome. Selye determined (initially by studying rats) that
stress
An adaptive response to a situation that is perceived as challenging or threatening to the person’s well-being.
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Chapter Four Workplace Emotions, Attitudes, and Stress 111
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people have a fairly consistent and automatic physiological response to stressful situations, which helps them cope with environmental demands.92
The general adaptation syndrome consists of the three stages shown in Exhibit 4.6. The alarm reaction stage occurs when a threat or challenge activates the physiological stress re- sponses that were noted above. The individual’s energy level and coping effectiveness de- crease in response to the initial shock. The second stage, resistance, activates various biochemical, psychological, and behavioral mechanisms that give the individual more en- ergy and engage coping mechanisms to overcome or remove the source of stress. To focus energy on the source of the stress, the body reduces resources to the immune system during this stage. This explains why people are more likely to catch a cold or some other illness when they experience prolonged stress. People have a limited resistance capacity, and if the source of stress persists, the individual will eventually move into the third stage, exhaustion. Most of us are able to remove the source of stress or remove ourselves from that source before becoming too exhausted. However, people who frequently reach exhaustion have increased risk of long-term physiological and psychological damage.93
Ability to cope
Normal state
Stage 1 Alarm reaction
Stage 2 Resistance
Stage 3 Exhaustion
Time
High
Low
EXHIBIT 4.6
General Adaptation Syndrome Source: Adapted from H. Selye, The Stress of Life (New York: McGraw-Hill, 1956).
CONSEQUENCES OF DISTRESS Stress takes its toll on the human body.94 Many people experience tension headaches, muscle pain, and related problems mainly due to muscle contractions from the stress response. Studies have found that high stress levels also contribute to cardiovascular disease, including heart at- tacks and strokes, and may be associated with some forms of cancer. Stress also produces vari- ous psychological consequences, such as job dissatisfaction, moodiness, depression, and lower organizational commitment. Furthermore, various behavioral outcomes have been linked to high or persistent stress, including lower job performance, poor decision making, and in- creased workplace accidents and aggressive behavior. Most people react to stress through “fight or flight,” so increased absenteeism is another outcome, because it is a form of flight.95
A particular stress consequence, called job burnout, occurs when people experience emo- tional exhaustion, cynicism, and reduced feelings of personal accomplishment.96 Emotional exhaustion, the first stage, is characterized by a lack of energy, tiredness, and a feeling that one’s emotional resources are depleted. This is followed by cynicism (also called depersonal- ization), which is an indifferent attitude toward work, emotional detachment from clients, a cynical view of the organization, and a tendency to strictly follow rules and regulations
general adaptation syndrome
A model of the stress experience, consisting of three stages: alarm reaction, resistance, and exhaustion.
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112 Part Two Individual Behavior and Processes
rather than adapt to the needs of others. The final stage of burnout, called reduced personal accomplishment, entails feelings of diminished confidence in one’s ability to perform the job well. In such situations, employees develop a sense of learned helplessness, because they no longer believe that their efforts make a difference.
STRESSORS: THE CAUSES OF STRESS Before identifying ways to manage work-related stress, we must first understand its causes, known as stressors. Stressors include any environmental conditions that place a physical or emotional demand on a person.97 There are numerous stressors in the workplace and in life in general. In this section, we’ll highlight three of the most common work-related stressors: harassment and incivility, workload, and lack of task control.
Harassment and Incivility One of the fastest-growing sources of workplace stress is psychological harassment. Psychological harassment includes repeated hostile or un- wanted conduct, verbal comments, actions, and gestures that undermine an employee’s dig- nity or psychological or physical integrity. This covers a broad landscape of behaviors, from threats and bullying to subtle yet persistent forms of incivility.98
Psychological harassment pervades many workplaces. One recent global survey of 16,517 employees reported that 83 percent of Europeans, 65 percent of Americans, and 55 percent of people in Asia have been physically or emotionally bullied. More than two-thirds of teachers in the United Kingdom say they have experienced or witnessed workplace bullying within the past 12 months. The government of Quebec, Canada, which passed the first workplace anti-harassment legislation in North America, received more than 2,500 com- plaints in the first year alone! Labor bureaus in Japan received more than 32,000 complaints of harassment in a recent year, a fivefold increase from six years earlier.99
Sexual harassment is a type of harassment in which a person’s employment or job perfor- mance is conditional and depends on unwanted sexual relations (called quid pro quo harass- ment) and/or the person experiences sexual conduct from others (such as posting pornographic material) that unreasonably interferes with work performance or creates an intimidating, hostile, or offensive working environment (called hostile work environment harassment).100
Work Overload University of Michigan professor Dave Ulrich recalls visiting IBM’s headquarters in Armonk, New York, three decades ago to deliver executive programs. Almost everyone, including professional and management staff members, worked 35–45 hours per week. The offices were vacant by 5:30 p.m. Back then, IBM employees took sick leave whenever they experienced health problems. They also took real vacations of up to five weeks, with no cell phones, computers, or other electronics to keep them tethered to the job. Those days are long gone, says Ulrich. “Today the employees in that same building work 60 to 80 hours per week, keep on working through most health problems, and take almost no real vacation.”101
IBM isn’t the only company where employees work long hours and seldom take vaca- tions. Surveys by the Families and Work Institute report that 44 percent of Americans say they are overworked, up from 28 percent who felt this way a few years earlier. In addition,
40 percent of Americans say they haven’t had a real vaca- tion within the previous two years (where vacation con- sists of leisure travel for a week or more to a destination at least 100 miles from home).102 Global Connections 4.1 describes how overwork has also become a serious matter in China.
Why do employees work such long hours? One explana- tion is the combined effects of technology and globalization. People increasingly work with coworkers in distant time zones, and their constantly-on communications habits make
stressors
Environmental conditions that place a physical or emotional demand on the person.
psychological harassment
Repeated and hostile or unwanted conduct, verbal comments, actions, or gestures that affect an employee’s dignity or psychological or physical integrity and that result in a harmful work environment for the employee.
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Chapter Four Workplace Emotions, Attitudes, and Stress 113
it difficult to separate work from personal life. A second factor is that many people are caught up in consumerism; they want to buy more goods and services, and doing so requires more income through longer work hours. A third reason, called the “ideal worker norm,” is that professionals expect themselves and others to work longer work hours. For many, toiling away far beyond the normal workweek is a badge of honor, a symbol of their superhuman capacity to perform above others.104
Low Task Control One of the most important findings emerging from stress research is that employees are more stressed when they lack control over how and when they perform their tasks, as well as lack control over the pace of work activity. Work is potentially more stressful when it is paced by a machine, involves monitoring equipment, or the work schedule is controlled by someone else. Low task control is a stressor because employees face high workloads without the ability to adjust the pace of the load to their own energy, attention span, and other resources. Furthermore, the degree to which low task control is a stressor in- creases with the burden of responsibility the employee must carry.105 Assembly-line workers have low task control, but their stress can be fairly low if their level of responsibility is also low. In contrast, sports coaches are under immense pressure to win games (high responsibil- ity), yet they have little control over what happens on the playing field (low task control).
Working to Death in China103
Wang Jijiang has been working non-stop for 36 hours, and the marathon is taking its toll. “My brain doesn’t seem to be work- ing,” says the 25-year-old media planner in Shanghai. “I don’t have time to take a nap. Actually, I don’t even have the energy to think if I’m tired or not.” Wang does not receive overtime pay, yet most days she has to work 10 or 12 hours to com- plete her tasks. The workday extends well past midnight during the company’s busy year-end period. Stress seems to be on the rise in China due to increasing workloads and hours of work. More than 30 percent of em- ployees in one recent poll said they worked more than 10 hours every day over the previous six months. Another survey reported that 70 percent of white collar workers in downtown Beijing show signs of overwork. A global survey recently re- ported that employees in China are much more likely than em- ployees in any other country to think their time at work (away from personal life) has increased over the past two years. Overwork and its consequences have been well known for several decades in Japan, where the word karoshi means “death from overwork.” In China, working to death (called guolaosi) also seems to be a serious concern. Although difficult to calcu- late, one prominent newspaper estimates that guolaosi claims the lives of 600,000 people in China each year. For example, an engineer at Foxconn’s Shenzhen factory died suddenly after working nonstop for 34 hours during a month of extended night shifts. A dozen other employees at the factory took their own lives around that time, many apparently due to overwork and the impersonal conditions. An employee at Web game op- erator 17173.com in Fuzhou City died of viral myocarditis due to overwork. A junior auditor in the Shanghai office of Price-
waterhouseCoopers (PwC) died of cerebral meningitis, which many believe was caused by overwork. PwC says the employee was on sick leave at the time of her death, but her microblog included many messages posted from work after midnight complaining of her ailment and overwork (including “overtime again” and “I’d die for sleep”). “Those accounting firms used to be my ideal work destina- tions and I had dreamed of working there since I was a fresh student in university,” says Kong Ranran, an accounting student at Peking University in Beijing. However, Kong’s opinion changed after a recent three-month internship at Pricewater- houseCoopers. “I saw the tough situation behind the halo and it was definitely not appealing,” she says. “The work hours are endless and it is impossible to squeeze any time for leisure or anything else.” Kong now prefers a government job where she thinks there is some work–life balance.
global connections 4.1
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114 Part Two Individual Behavior and Processes
LO 4-5
workaholic
A person who is highly involved in work, feels compelled to work, and has a low enjoyment of work.
Are you a workaholic? Visit connect.mcgrawhill.com to assess yourself on this stress-related personal characteristic.
INDIVIDUAL DIFFERENCES IN STRESS People experience different stress levels when exposed to the same stressor. One factor is the employee’s physical health. Regular exercise and a healthy lifestyle produce a larger store of energy to cope with stress. A second individual difference is the coping strategies employees use to ward off a particular stressor.106 People sometimes figure out ways to remove the stressor or minimize its presence. Seeking support from others, reframing the stressor in a more posi- tive light, blaming others for the stressor, and denying the stressor’s existence are some other coping mechanisms. Some coping strategies work better for certain stressors, and some are better across all stressors.107 Thus, someone who uses a less effective coping mechanism in a particular situation would experience more stress in response to that situation. People have a tendency to rely on one or two coping strategies and those who rely on generally poor coping strategies (such as denying the stressor exists) are going to experience more stress.
Personality is the third and possibly the most important reason people experience differ- ent levels of stress when faced with the same stressor.108 Individuals with low neuroticism (high emotional stability) usually experience lower stress levels because, by definition, they are less prone to anxiety, depression, and other negative emotions. Extraverts also tend to experience lower stress than do introverts, likely because extraversion includes a degree of positive thinking and extraverts interact with others, which helps buffer the effect of stress- ors. People with a positive self-concept—high self-esteem, self-efficacy, and internal locus of control (see Chapter 3)—feel more confident and in control when faced with a stressor. In other words, they tend to have a stronger sense of optimism.109
While positive self-concept protects us from stress, workaholism attracts more stressors and weakens the capacity to cope with them. The classic workaholic (also called work addict) is highly involved in work, feels compelled or driven to work because of inner pressures, and has a low enjoyment of work. Workaholics are compulsive and preoccupied with work, often to the exclusion and detriment of personal health, intimate relationships, and family.110
MANAGING WORK-RELATED STRESS Many people deny the existence of their stress until it has more serious outcomes. This avoidance strategy creates a vicious cycle because the failure to cope with stress becomes another stressor on top of the one that created the stress in the first place. To prevent this vicious cycle, employers and employees need to apply one or more of the stress management strategies described next: remove the stressor, withdraw from the stressor, change stress per- ceptions, control stress consequences, and receive social support.111
Remove the Stressor There are many ways to remove the stressor, but some of the more common actions involve assigning employees to jobs that match their skills and pref- erences, reducing excessive workplace noise, having a complaint system, taking corrective action against harassment, and giving employees more control over the work process. An- other important way that companies can remove stressors is by facilitating better work–life balance. Work–life balance initiatives minimize conflict between the employee’s work and nonwork demands. Five of the most common work–life balance initiatives are flexible and limited work time, job sharing, telecommuting, personal leave, and child care support.112
• Flexible and limited work time. An important way to improve work–life balance is lim- iting the number of hours that employees are expected to work and giving them flexi- bility in scheduling those hours. For example, San Jorge Children’s Hospital offers a
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Chapter Four Workplace Emotions, Attitudes, and Stress 115
unique form of work flexibility that has dramatically reduced turnover and stress. The Puerto Rican medical center introduced a “ten-month work program” in which em- ployees can take summer months off to care for their children while out of school.113
• Job sharing. Job sharing splits a career position between two people so that they expe- rience less time-based stress between work and family. They typically work different parts of the week, with some overlapping work time in the weekly schedule to coor- dinate activities. This strategy gives employees the ability to work part-time in jobs that are naturally designed for full-time responsibilities.
• Telecommuting. Telecommuting (also called teleworking) involves working from home or a site close to home rather than commuting a longer distance to the office every day (see Chapter 1). By reducing or eliminating commuting time, employees can more easily fulfill family obligations, such as temporarily leaving the home office to pick the kids up from school. Consequently, telecommuters tend to experience better work–life balance.114 However, teleworking may increase stress for those who crave social interaction and who lack the space and privacy necessary to work at home.
• Personal leave. Employers with strong work–life values offer extended maternity, pa- ternity, and personal leave for employees to care for a new family or take advantage of a personal experience. Most countries provide 12 to 16 weeks of paid leave, with some offering one year or more of fully or partially paid maternity leave.115
• Child care support. According to one estimate, almost one-quarter of large American employers provide on-site or subsidized child care facilities. Child care support re- duces stress because employees are less rushed to drop off children and less worried during the day about how well their children are doing.116
Withdraw from the Stressor Removing the stressor may be the ideal solution, but it is often not feasible. An alternative strategy is to permanently or temporarily remove employees from the stressor. Permanent withdrawal occurs when employees are transferred to jobs that are more compatible with their competencies and values. Temporarily withdrawing from stressors is the most frequent way that employees manage stress. Vacations and holidays are important opportunities for employees to recover from stress and re-energize for future challenges. A small number of companies offer paid or unpaid sabbaticals.118 Many firms also provide innovative ways for employees to withdraw from stressful work throughout the day, such as game rooms, ice cream cart breaks, nap rooms, and cafeterias that include live piano recitals.
Change Stress Perceptions Earlier, we said that employees experience different stress levels because they have different levels of positive self-evaluation and optimism. Consequently, another way to manage stress is to help employees improve their self-concept so that job chal- lenges are not perceived as threatening. Personal goal setting and self-reinforcement can also
No company is completely free of negative stress (distress), but SAS Institute might come close. The Cary, North Carolina, analytics software company prides itself on having a family- friendly culture, with a strong emphasis on work–life balance throughout its worldwide sites. SAS’s offices in Oslo, Norway, for example, offer yoga and meditation classes during working hours, a large games room, dry cleaning and meals delivered to their home, flexible work hours, and paid leave to care for children and elderly parents. “We have determined that it pays for SAS to be generous in this way” says Hilde Sundt-Hansen, SAS’s HR Director in Norway. “We want SAS Institute to be a good place to work, where we encourage a balance between work and private life.”117
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116 Part Two Individual Behavior and Processes
chapter summary 4-1 Explain how emotions and cognition (conscious rea-
soning) influence attitudes and behavior.
Emotions are physiological, behavioral, and psychological epi- sodes experienced toward an object, person, or event that create a state of readiness. Emotions differ from attitudes, which rep- resent a cluster of beliefs, feelings, and behavioral intentions toward a person, object, or event. Beliefs are a person’s estab- lished perceptions about the attitude object. Feelings are posi- tive or negative evaluations of the attitude object. Behavioral intentions represent a motivation to engage in a particular be- havior toward the target. Attitudes have traditionally been described as a purely rational process in which beliefs predict feelings, which predict behavioral intentions, which predict behavior. We now know that emotions have an influence on behavior that is equal to or greater than that
of cognition. This dual process is apparent when we internally ex- perience a conflict between what logically seems good or bad and what we emotionally feel is good or bad in a situation. Emotions also affect behavior directly. Behavior sometimes influences our subsequent attitudes through cognitive dissonance.
4-2 Discuss the dynamics of emotional labor and the role of emotional intelligence in the workplace.
Emotional labor consists of the effort, planning, and control needed to express organizationally desired emotions during in- terpersonal transactions. It is more common in jobs requiring a variety of emotions and more intense emotions, as well as in jobs in which interactions with clients are frequent and long in dura- tion. Cultures also differ on the norms of displaying or conceal- ing a person’s true emotions. Emotional dissonance is the psychological tension experienced when the emotions people are
How do you cope with stressful situations? Visit connect. mcgrawhill.com to identify the type of coping strategy you prefer to use in stressful situations.
Receive Social Support Social support occurs when coworkers, supervisors, family members, friends, and others provide emotional and/or informational support to buffer an individual’s stress experience. For instance, one recent study found that employees whose managers were good at empathizing experienced fewer stress symptoms than did employees whose managers were less empathetic. Social support potentially (but not always) improves the person’s optimism and self-confidence because support makes people feel valued and worthy. Social support also provides information to help the person interpret, comprehend, and possibly remove the stressor. For instance, to reduce a new employee’s stress, coworkers could describe ways to handle difficult customers. Seeking social support is called a “tend and befriend” response to stress, and research suggests that women often follow this route rather than the “fight-or-flight” response mentioned earlier.122
reduce the stress that people experience when they enter new work settings. Research also suggests that some (but not all) forms of humor can improve optimism and create positive emotions by taking some psychological weight off the situation.119
Control Stress Consequences Regular exercise and maintaining a healthy lifestyle is an effective stress management strategy because it controls stress consequences. Research indi- cates that physical exercise reduces the physiological consequences of stress by helping employ- ees moderate their breathing and heart rate, muscle tension, and stomach acidity.120 Many companies offer Pilates, yoga, and other exercise and meditation classes during the workday. Research indicates that various forms of meditation reduce anxiety, reduce blood pressure and muscle tension, and moderate breathing and heart rate.121 Wellness programs can also help control the consequences of stress. These programs inform employees about better nutrition and fitness, regular sleep, and other good health habits. Many large employers offer employee assistance programs (EAPs)—counseling services that help employees resolve marital, financial, or work-related troubles, but some counseling also varies with the industry.
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CASE STUDY: ROUGH SEAS ON THE LINK650 Professor Suzanne Baxter was preparing for her first class of the semester when Shaun O’Neill knocked lightly on the open door and announced himself: “Hi, Professor, I don’t suppose you remember me?” Professor Baxter had large classes, but she did remember that Shaun was a student in her organizational behavior class a few years ago. Shaun had decided to work in the oil industry for a couple of years be- fore returning to school to complete his diploma. “Welcome back!” Baxter said as she beckoned him into the office. “I heard you were working on an oil rig in the United Kingdom. How was it?” “Well, Professor,” Shaun began, “I had worked two sum- mers in the Texan oil fields and my family’s from Ireland, so I hoped to get a job on the LINK650. It’s that new WestOil drilling rig that arrived with so much fanfare in the North Sea fields a few years ago. The LINK650 was built by LINK, Inc. in Texas. A standard practice in this industry is for the rig man- ufacturer to manage its day-to-day operations, so employees on the LINK650 are managed completely by LINK managers
with no involvement from WestOil. We all know that drilling rig jobs are dangerous, but they pay well and offer generous time off. A local newspaper there said that nearly 1,000 people lined up to complete job applications for the 50 nontechnical positions. I was lucky enough to get one of those jobs. “Everyone hired on the LINK650 was enthusiastic and proud. We were one of the chosen few and were really pumped up about working on a new rig that had received so much media attention. I was quite impressed with the recruiters—so were several other hires—because they really seemed to be concerned about our welfare out on the plat- form. I later discovered that the recruiters came from a con- sulting firm that specializes in hiring people. Come to think of it, we didn’t meet a single LINK manager during that pro- cess. Maybe things would have been different if some of those LINK supervisors had interviewed us. “Working on LINK650 was a real shock, even though most of us had some experience working in the oil fields. I’d say that none of the 50 nontechnical people hired was quite
affective organizational commitment, p. 108 attitudes, p. 95 cognitive dissonance, p. 99 continuance commitment, p. 108 emotional dissonance, p. 100 emotional intelligence (EI), p. 101
emotional labor, p. 100 emotions, p. 94 exit-voice-loyalty-neglect (EVLN) model, p. 105 general adaptation syndrome, p. 110 job satisfaction, p. 103
psychological harassment, p. 112 service profit chain model, p. 107 stress, p. 110 stressors, p. 112 trust, p. 109 workaholic, p. 114
key terms
required to display are quite different from the emotions they actually experience at that moment. Deep acting can minimize this dissonance, as can the practice of hiring people with a natu- ral tendency to display desired emotions. Emotional intelligence is the ability to perceive and express emotion, assimilate emotion in thought, understand and reason with emotion, and regulate emotion in oneself and others. This concept includes four components arranged in a hierarchy: self-awareness, self-management, awareness of others’ emotions, and management of others’ emotions. Emotional intelligence can be learned to some extent, particularly through personal coaching.
4-3 Summarize the consequences of job dissatisfaction, as well as strategies to increase organizational (affective) commitment.
Job satisfaction represents a person’s evaluation of his or her job and work context. Four types of job dissatisfaction consequences are quitting or otherwise getting away from the dissatisfying sit- uation (exit), attempting to change the dissatisfying situation (voice), patiently waiting for the problem to sort itself out (loy- alty), and reducing work effort and performance (neglect). Job satisfaction has a moderate relationship with job performance and with customer satisfaction. Affective organizational com-
mitment (loyalty) is the employee’s emotional attachment to, identification with, and involvement in a particular organiza- tion. This form contrasts with continuance commitment, which is a calculative bond with the organization. Companies build loyalty through justice and support, shared values, trust, organi- zational comprehension, and employee involvement.
4-4 Describe the stress experience and review three major stressors.
Stress is an adaptive response to a situation that is perceived as challenging or threatening to a person’s well-being. The stress experience, called the general adaptation syndrome, involves moving through three stages: alarm, resistance, and exhaustion. Stressors are the causes of stress and include any environmental conditions that place a physical or emotional demand on a per- son. Three stressors that have received considerable attention are harassment and incivility, work overload, and low task control.
4-5 Identify five ways to manage workplace stress. Many interventions are available to manage work-related stress, including removing the stressor, withdrawing from the stressor, changing stress perceptions, controlling stress consequences, and receiving social support.
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CLASS EXERCISE: STRENGTHS-BASED COACHING PURPOSE To help students practice a form of interpersonal development built on the dynamics of positive emotions.
MATERIALS None.
BACKGROUND Several chapters in this book introduce and apply the emerging philosophy of positive organizational behavior, which suggests that focusing on the positive rather than negative aspects of life will improve organizational suc- cess and individual well-being. An application of positive OB is strengths-based or appreciative coaching, in which the coach focuses on the person’s strengths rather than weaknesses and helps realize the person’s potential. As part of any coach- ing process, the coach listens to the employee’s story and uses questions and suggestions to help that person redefine her or his self-concept and perceptions of the environment. Two
important skills in effective coaching are active listening and probing for information (rather than telling the person a solu- tion or direction). The instructions below identify specific in- formation and issues that the coach and coachee will discuss.
INSTRUCTIONS
Step 1: Form teams of four people. One team can have six people if the class does not have multiples of four. For odd-numbered class sizes, one person may be an observer. Divide into pairs in which one person is coach and the other is the coachee. Ideally for this exercise, the coach and coachee should have little knowledge of each other.
Step 2: Coachees will describe something about themselves in which they excel and for which they like to be recognized. This competency might be work-related, but not necessarily. It would be a personal achievement or ability that is close to
prepared for the brutal jobs on the oil rig. We did the dirtiest jobs in the biting cold winds of the North Sea. Still, during the first few months most of us wanted to show the company that we were dedicated to getting the job done. A couple of the new hires quit within a few weeks, but most of the people hired with me really got along well—you know, just like the ideas you mentioned in class. We formed a special bond that helped us through the bad weather and grueling work. “The LINK650 supervisors were another matter. They were mean taskmasters who had worked for many years on oil rigs in the Gulf of Mexico or North Sea. They seemed to relish the idea of treating their employees the same way they had been treated before becoming managers. We put up with their abuse for the first few months, but things got worse when the LINK650 was shut down twice to correct mechanical problems. These setbacks embarrassed LINK’s management and they put more pressure on the supervisors to get us back on schedule. “The supervisors started to ignore equipment problems and pushed us to get jobs done more quickly without regard to safety procedures. They routinely shouted obscenities at em- ployees in front of others. A couple of my work mates were fired and a couple of others quit their jobs. I almost lost my job one day just because my boss thought I was deliberately work- ing slowly. He didn’t realize—or care—that the fittings I was connecting were damaged. Several people started finding ways to avoid the supervisors and get as little work done as possible. Many of my coworkers developed back problems. We jokingly called it the ‘rigger’s backache’ because some employees faked their ailment to leave the rig with paid sick leave. “Along with having lousy supervisors, we were always kept in the dark about the problems on the rig. Supervisors said that they didn’t know anything, which was partly true, but they said we shouldn’t be so interested in things that didn’t concern us. But the rig’s problems, as well as its future con- tract work, were a major concern to crew members who weren’t ready to quit. Their job security depended on the rig’s
production levels and whether WestOil would sign contracts to drill new holes. Given the rig’s problems, most of us were concerned that we would be laid off at any time. “Everything came to a head when Bob MacKenzie was killed because someone secured a hoist improperly. Not sure if it was mentioned in the papers here, but it was big news around this time last year. A government inquiry concluded that the person responsible wasn’t properly trained and that employees were be- ing pushed to finish jobs without safety precautions. Anyway, while the inquiry was going on, several employees decided to unionize the rig. It wasn’t long before most employees on LINK650 had signed union cards. That really shocked LINK’s management and the entire oil industry because it was, I think, just the second time that a rig had ever been unionized there. “Since then, management has been doing everything in its power to get rid of the union. It sent a ‘safety officer’ to the rig, although we eventually realized that he was a consultant the company hired to undermine union support. Several managers were sent to special seminars on how to manage a unionized work force, although one of the topics was how to break the union. “So you see, Professor, I joined LINK as an enthusiastic employee and quit last month with no desire to lift a finger for them. It really bothers me, because I was always told to do your best, no matter how tough the situation. It’s been quite an experience.”
Discussion Questions
1. Identify the various ways that employees expressed their job dissatisfaction on the LINK650.
2. Shaun O’Neill’s commitment to the LINK organization dwindled over his two years of employment. Discuss the factors that affected his organizational commitment.
Source: © Copyright. Steven L. McShane. This case is based on actual events, though names and some information have been changed.
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TEAM EXERCISE: RANKING JOBS ON THEIR EMOTIONAL LABOR
their self-concept (how they define themselves). The coach mostly listens but also prompts more details from the coachee using “probe” questions (e.g., “Tell me more about that,” “What did you do next?” “Could you explain that further, please?” “What else can you remember about that event?”). As the coachee’s story develops, the coach will guide the coachee to identify ways to leverage this strength. For example, the pair would explore situational barriers to practicing the coachee’s strength, as well as aspects of this strength that re- quire further development. The strength may also be dis- cussed as a foundation for the coachee to develop strengths in other, related ways. The session should end with some discus- sion of the coachee’s goals and action plans. The first coaching session can be any length of time specified by the instructor, but 15 to 25 minutes is typical for each coaching session.
PURPOSE This exercise is designed to help you under- stand the jobs in which people tend to experience higher or lower degrees of emotional labor.
INSTRUCTIONS
Step 1: Individually rank-order the extent that the jobs listed below require emotional labor. In other words, assign a “1” to the job you believe requires the most effort, planning, and control to express organizationally desired emotions during interpersonal transactions. Assign a “10” to the job you believe requires the least amount of emotional labor. Mark your rankings in column 1.
Step 3: After completing the first coaching session, regroup so that each pair consists of different partners than those in the first pair (i.e., if pairs were A–B and C–D in session 1, pairs are A–C and B–D in session 2). The coaches become coachees to their new partners in session 2.
Step 4: The class will debrief regarding the emotional experi- ence of discussing personal strengths, the role of self-concept in emotions and attitudes, the role of managers and coworkers in building positive emotions in people, and the value and limitations of strengths-based coaching.
Note: For further information about strengths-based coaching, see Sara L. Orem, Jacqueline Binkert, and Ann L. Clancy, Appreciative Coaching (San Francisco: Jossey-Bass, 2007); Marcus Buckingham and C. Coffman, First, Break All the Rules (New York: Simon & Schuster, 1999).
Step 2: The instructor will form teams of four or five mem- bers, and each team will rank-order the items on the basis of consensus (not simply averaging the individual rankings). These results are placed in column 2.
Step 3: The instructor will provide expert ranking informa- tion. This information should be written in column 3. Then, students calculate the differences in columns 4 and 5.
Step 4: The class will compare the results and discuss the features of jobs with high emotional labor.
Occupational Emotional Labor Scoring Sheet
(1) (2) (3) (4) (5) INDIVIDUAL TEAM EXPERT ABSOLUTE ABSOLUTE OCCUPATION RANKING RANKING RANKING DIFFERENCE OF 1 AND 3 DIFFERENCE OF 2 AND 3
Bartender
Cashier
Dental hygienist
Insurance adjuster
Lawyer
Librarian
Postal clerk
Registered nurse
Social worker
Television announcer
TOTAL
Your score Team score
(The lower the score, the better.)
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SELF-ASSESSMENT
ARE YOU IN TOUCH WITH YOUR EMOTIONS? PURPOSE This self-assessment is designed to help you un- derstand the meaning and dimensions of emotional intelli- gence and to estimate your perceptions of your emotional intelligence.
OVERVIEW Emotional intelligence has become an im- portant concept and ability in the workplace. It is a skill that people develop throughout their lives to help them interact better with others, make better decisions, and manage the attitudes and behavior of other people. Although emotional intelligence is best measured as an ability test, this scale offers
you an opportunity to estimate your perceptions and self-awareness of this ability in yourself.
INSTRUCTIONS Read each of the statements below and select the response that best describes you. Then, use the scoring key in Appendix B of this book to calculate your results. This self-assessment is completed alone so that students rate them- selves honestly without concerns of social comparison. How- ever, class discussion will focus on the meaning and dimensions of emotional intelligence, its application in the workplace, and the best ways to measure emotional intelligence.
Emotional Intelligence Self-Assessment
TO WHAT EXTENT DO YOU AGREE OR DISAGREE STRONGLY MODERATELY SLIGHTLY SLIGHTLY MODERATELY STRONGLY WITH EACH OF THESE STATEMENTS? AGREE AGREE AGREE DISAGREE DISAGREE DISAGREE
(continued)
1. I tend to describe my emotions accurately.
2. I show respect for others’ opinions, even when I think those opinions are wrong.
3. I know how others are feeling, even when they try to hide their feelings.
4. I am good at getting people enthusiastic and motivated.
5. When I get worried or angry, I have difficulty suppressing those emotions
such that others do not notice them.
6. I have a talent for gauging from their body language a person’s true feelings.
7. I usually know when I am feeling frustrated.
8. I tend to have difficulty getting people in the right emotional frame of mind.
9. I am very much aware of my own emotions.
10. I am able to understand all sides of a disagreement before forming an opinion.
11. I can easily cheer people up when they are feeling discouraged or sad.
12. I am sometimes unaware when I get emotional about an issue.
13. I can tell when others do not mean what they say.
14. I am good at controlling my own emotions when the situation requires such control.
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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.
TO WHAT EXTENT DO YOU AGREE OR DISAGREE STRONGLY MODERATELY SLIGHTLY SLIGHTLY MODERATELY STRONGLY WITH EACH OF THESE STATEMENTS? AGREE AGREE AGREE DISAGREE DISAGREE DISAGREE
Source: Copyright © 2011 Steven L. McShane. This self-assessment was inspired by similar instruments, particularly N. S. Schutte et al., “Development and Validation of a Measure of Emotional Intelligence,” Personality and Individual Differences 25, no. 2 (1998): 167–77; C.-S. Wong and K. S. Law, “The Effects of Leader and Follower Emotional Intelligence on Performance and Attitude: An Exploratory Study,” Leadership Quarterly 13 (2002): 243–74; P. J. Jordan and S. A. Lawrence, “Emotional Intelligence in Teams: Development and Initial Validation of the Short Version of the Workgroup Emotional Intelligence Profile (WEIP-S),” Journal of Management & Organization 15 (2009): 452–69.
15. I sometimes don’t realize how others are feeling about an issue.
16. I have a talent for getting others to share my keenness for an idea.
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5 Foundations of Employee Motivation
le a
rn in
g o
b je
ct iv
e s After reading this chapter, you should be able to:
5-1 Define employee engagement.
5-2 Explain the role of human drives and emotions in employee motivation and behavior.
5-3 Summarize Maslow’s needs hierarchy, McClelland’s learned needs theory, and four-drive theory, and discuss their implications for motivating employees.
5-4 Discuss the expectancy theory model, including its practical implications.
5-5 Outline organizational behavior modification (OB Mod) and social cognitive theory, and explain their relevance to employee motivation.
5-6 Describe the characteristics of effective goal setting and feedback.
5-7 Summarize equity theory and describe ways to improve procedural justice.
122
c ha pter
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s a lead courier at DHL Express in Liberia, Africa, James Davies begins work by 6 am, sorts out his deliveries, and ensures his coworkers’ packages are ready to go. Then, he cheerfully heads out on his route, providing some of the best customer service in Monrovia, Liberia’s capital city.
“James Davies has an incredible energy, and his passion for the job after 14 years is
unbelievable,” enthuses DHL Liberia’s country manager. “I have never had any staff
getting more positive comments from various clients than James Davies.”
DHL Express, the global courier division of Germany’s Deutsche Post, has been
building a workforce of highly engaged employees such as James Davies. “Motivated and
engaged employees are crucial to the success of any business and, at DHL, they form
the cornerstone of our service,” explains Sumesh Rahavendra, the head of marketing at
DHL Express sub-Saharan Africa. “Our people make a difference in the service we
provide, therefore impacting on customer loyalty and, by extension, our profitability.”
DHL’s employee engagement strategy begins with its award-winning Certified
International Specialist (CIS) program. All of the company’s 100,000 employees in
220 countries have completed the CIS foundation course, which teaches the
fundamentals of international shipping as well as DHL’s business strategy and its
four core values. The CIS program demonstrates the company’s investment in its
people and helps employees to see the importance of their role in the company’s
complex operations. “CIS is not a traditional training platform,” says DHL CEO
Ken Allen. “It was designed first and foremost as an engagement tool.”
DHL Express also motivates its management staff through rigorous goal setting
and feedback. The company was an early adopter of the balanced scorecard process,
which measures dozens of performance indicators across the organization, such as
the percentage of packages delivered on time and how long it takes a call center
employee to answer an incoming call.
Along with these quantitative performance targets, DHL motivates staff through
personal recognition and appreciation. For instance, the company’s recent Africa-wide
employee appreciation week celebrated thousands of employees for their long service as
well as special efforts beyond the call of duty. James Davies and other top performers
were awarded a trip to a luxury resort near Victoria Falls, Zambia. DHL Kenya’s managing
director thanked couriers by serving them breakfast and providing assistance on their
routes that week. In other countries, DHL hosted picnics for employees and their families.
s b c roro
A
123 DHL Express relies on employee engagement and motivation to provide efficient and friendly customer service.
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124 Part Two Individual Behavior and Processes
“For me, this initiative has reinforced the importance of employee recognition
and motivation,” says Adelaide Ngayo, head of DHL Express’ Customer Service
department in Chad. “It’s given our team the drive to move from ‘good to great’, and
has really motivated us.”1
DHL Express has developed a highly engaged workforce through recognition, goal set- ting, feedback, and human capital investment. The company also involves employees, en- courages innovative thinking, and creates a positive work environment. These practices generate high levels of employee motivation. Motivation refers to the forces within a person that affect the direction, intensity, and persistence of voluntary behavior.2 Motivated em- ployees are willing to exert a particular level of effort (intensity), for a certain amount of time (persistence), toward a particular goal (direction). Motivation is one of the four essen- tial drivers of individual behavior and performance (see Chapter 2).
This chapter introduces the core theories of employee motivation. We begin by discuss- ing employee engagement, an increasingly popular concept associated with motivation. Next, we explain how drives and emotions are the prime movers of employee motivation. Three theories that focus on drives and needs—Maslow’s needs hierarchy, McClelland’s learned needs theory, and four-drive theory—are introduced and evaluated. Next, we turn our attention to the popular rational decision model of employee motivation: expectancy theory. Organizational behavior modification and social cognitive theory are then intro- duced, which relate to learning the expectancies that motivate employees through the expec- tancy theory model. Next, we look at goal setting and feedback, which are considered the most robust and useful motivational concepts and practices in organizations. This chapter closes with the topic of motivation through organizational justice, including the elements and dynamics of equity theory and procedural justice.
Employee Engagement When executives discuss employee motivation these days, they are just as likely to use the phrase employee engagement. Although its definition is still being debated,3 we cautiously define employee engagement as an individual’s emotional and cognitive (logical) motivation, particularly a focused, intense, persistent, and purposive effort toward work-related goals. It is typically described as an emotional involvement in, commitment to, and satisfaction with work. Employee engagement also includes a high level of absorption in the work—the expe- rience of focusing intensely on the task with limited awareness of events beyond that work. Finally, employee engagement is often described in terms of self-efficacy—the belief that you have the ability, role clarity, and resources to get the job done (see Chapter 3).
Employee engagement is on the minds of many business leaders these days because it seems to be a strong predictor of employee and work unit performance. A major report for the British government concluded that employee engagement is so important to the country’s international competitiveness that the government should urgently raise awareness of and support for employee engagement practices throughout all sectors of the economy.4 Standard Chartered Bank found that branches with higher employee engagement provide significantly higher customer service quality, have 46 percent lower employee turnover, and produce 16 percent higher profit margin growth than branches with lower employee engagement. Electronics retailer Best Buy reports that a 0.1 increase (on a 5.0 point scale) in a store’s employee engagement score is associated with a $100,000
increase in that store’s profitability for the year. It isn’t always clear from these studies whether employee engagement makes companies more successful, or whether the company’s success makes employees more engaged. However, these interventions at Best Buy, Standard Chartered, and other companies suggest that employee engagement causes the company outcomes more than vice versa.
LO 5-1
motivation
The forces within a person that affect his or her direction, intensity, and persistence of voluntary behavior.
employee engagement
Individual emotional and cognitive motivation, particularly a focused, intense, persistent, and purposive effort toward work-related goals.
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Chapter Five Foundations of Employee Motivation 125
The challenge facing organizational leaders is that most employees aren’t very engaged.6 The numbers vary, but one representative survey estimates that only 30 percent of employ- ees in the United States are engaged, 52 percent are not engaged, and 18 percent are actively disengaged. Actively disengaged employees tend to be disruptive at work, not just discon- nected from work.7 Employees in several Asian countries (notably Japan, China, and South Korea) and a few European countries (notably Italy, the Netherlands, and France) have the lowest levels of employee engagement, whereas the highest scores are usually found in the United States, Brazil, and India.
This leads to the question: What are the drivers of employee engagement? Goal setting, employee involvement, organizational justice, organizational comprehension (knowing what’s going on in the company), employee development opportunities, sufficient resources, and an appealing company vision are some of the more commonly mentioned influences.8 In other words, building an engaged workforce calls on most topics in this book, such as the MARS model (Chapter 2), building affective commitment (Chapter 4), motivation practices (Chapter 5), and leadership (Chapter 12).
Employee Drives and Needs To figure out how to nurture a more engaged and motivated workforce, we first need to understand the motivational “forces” or prime movers of employee behavior.9 Our starting point is drives (also called primary needs), which we define as hardwired characteristics of
LO 5-2
drives
Hardwired characteristics of the brain that correct deficiencies or maintain an internal equilibrium by producing emotions to energize individuals.
How do you build a successful company? John DeLano, who recently stepped down after a decade as CEO of Flexigroup, recommends an unrelenting drive to improve employee engagement. Employee engagement scores at Flexirent Capital, the Australian company’s consumer leasing division, increased from a lowly 31 percent a decade ago to around 75 percent today, catapulting it onto the best employer list in that country. Over the same period, Flexirent’s profitability has increased by 900 percent. “We could never have achieved the results we have without having an engaged workforce,” said DeLano. “It is no coincidence that our growth began to accelerate on a continuous basis only since we made a concerted effort to improve our employee engagement.”5
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126 Part Two Individual Behavior and Processes
the brain that attempt to keep us in balance by correcting deficiencies. Drives accomplish this task by producing emotions that energize us to act on our environment.10 Drives are receiving increasing attention because recent neuroscience (brain) research has highlighted the central role of emotions in human decisions and behavior. There is no agreed upon list of human drives, but research has consistently identified several, such as the drive for social interaction, for competence or status, to know what’s going on around us, and to defend ourselves against physiological and psychological harm.11
Drives are innate and universal, which means that everyone has them and they exist from birth. Furthermore, drives are the “prime movers” of behavior because they generate emo- tions, which put people in a state of readiness to act on their environment. Emotions play a central role in motivation.12 In fact, both words (emotion and motivation) originate from the same Latin word, movere, which means “to move.”
Exhibit 5.1 illustrates how drives and emotions translate into felt needs and behavior. Drives, and the emotions produced by these drives, produce human needs. We define needs as goal-directed forces that people experience. They are the motivational forces of emotions channeled toward particular goals to correct deficiencies or imbalances. As one leading neu- roscientist explains: “Drives express themselves directly in background emotions and we eventually become aware of their existence by means of background feelings.”13 In other words, needs are the emotions we eventually become consciously aware of.
Consider the following example: You arrive at work to discover a stranger sitting at your desk. Seeing this situation produces emotions (worry, curiosity) that motivate you to act. These emotions are generated from drives, such as the drive to defend and the drive to comprehend. When strong enough, these emotions motivate you to do something about this situation, such as finding out who that person is and possibly seeking reassurance from coworkers that your job is still safe. In this case, you have a need to know what is going on, to feel secure, and possibly to correct a sense of personal violation. Notice that your emotional reactions to seeing the stranger sitting at your desk represent the forces that move you, but you channel those emotions toward specific goals.
INDIVIDUAL DIFFERENCES IN NEEDS Everyone has the same drives; they are hard-wired in us through evolution. However, people develop different intensities of needs in a particular situation. Exhibit 5.1 explains why this difference occurs. The left side of the model shows that the individual’s self-concept (as well as personality and values), social norms, and past experience amplify or suppress drive-based emotions, thereby resulting in stronger or weaker needs.14 People who define themselves as very sociable typically experience a stronger need for social interaction if alone for a while, whereas people who view themselves as less sociable would experience a less intense need to be with others over that time. These individual differences also explain why needs can be “learned” to some extent. Socialization and reinforcement may cause people to alter their self-concept somewhat, resulting in a stronger or weaker need for social interaction, achieve- ment, and so on. We will discuss learned needs later in this chapter.
Self-concept, social norms, and past experience also regulate a person’s motivated deci- sions and behavior, as the right side of Exhibit 5.1 illustrates. Consider the earlier example of the stranger sitting at your desk. You probably wouldn’t walk up to the person and de- mand that he or she leave; such blunt behavior is contrary to social norms in most cultures.
Self-concept, social norms, and past experience
Drives and emotions
Needs Decisions and
behavior
EXHIBIT 5.1
Drives, Needs, and Behavior
needs
Goal-directed forces that people experience.
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Chapter Five Foundations of Employee Motivation 127
Employees who view themselves as forthright might approach the stranger directly, whereas those who have a different self-concept or have had negative experiences with direct con- frontation are more likely to first gather information from coworkers before approaching the intruder. In short, your drives (drive to comprehend, to defend, to bond, etc.) and resulting emotions energize you to act, and your self-concept, social norms, and past experience direct that energy into goal-directed behavior.
Exhibit 5.1 provides a useful template for understanding how drives and emotions are the prime sources of employee motivation and how individual characteristics (self-concept, experi- ence, values) influence goal-directed behavior. You will see pieces of this theory when we discuss four-drive theory, expectancy theory, equity theory, and other concepts in this chapter. The re- mainder of this section describes theories that try to explain the dynamics of drives and needs.
To what extent do you value motivating jobs? Visit connect.mcgrawhill. com to assess your growth need strength (self-actualization).
MASLOW’S NEEDS HIERARCHY THEORY By far, the most widely known theory of human motivation is Maslow’s needs hierarchy theory (see Exhibit 5.2). Developed by psychologist Abraham Maslow in the 1940s, the model condenses and integrates the long list of drives and needs that had been previously studied into a hierarchy of five basic categories (from lowest to highest):15 physiological (need for food, air, water, shelter, etc.), safety (need for security and stability), belongingness/love (need for interaction with and affection from others), esteem (need for self-esteem and social esteem/status), and self-actualization (need for self-fulfillment, realization of one’s potential). Along with developing these five categories, Maslow identified the desire to know and the desire for aesthetic beauty as two innate drives that do not fit within the hierarchy. Maslow suggested that we are motivated simultaneously by several primary needs (drives), but the strongest source of motivation is the lowest unsatisfied need at the time. As the person satis- fies a lower-level need, the next higher need in the hierarchy becomes the primary motivator and remains so even if never satisfied.
Self- actualization
Esteem
Belongingness
Safety
Physiological
Self- ualization
t
Need to know
Need for beauty
EXHIBIT 5.2
Maslow’s Needs Hierarchy Source: Based on information in A. H. Maslow, “A Theory of Human Moti- vation,” Psychological Review 50 (1943), pp. 370–396.
Maslow’s needs hierarchy
theory
A motivation theory of needs arranged in a hierarchy, whereby people are motivated to fulfill a higher need as a lower one becomes gratified.
LO 5-3
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128 Part Two Individual Behavior and Processes
Limitations of Needs Hierarchy Models In spite of its popularity, Maslow’s needs hierarchy theory has been dismissed by most motivation experts.16 Other needs hierarchy models have also failed to adequately depict human motivation. Studies have concluded that people do not progress through the hierarchy as Maslow’s theory predicts. Furthermore, evidence suggests that need fulfillment exists for a much shorter time than Maslow stated in his writing.
However, the main problem with Maslow’s and other needs hierarchy models is that people don’t fit into a one-size-fits-all needs hierarchy. Instead, these hierarchies vary from one person to the next. Some place social status at the top of their personal hierarchy; others view personal development and growth above social relations or status. Employee needs are strongly influ- enced by self-concept, personal values, and personality.17 People have different hierarchies of values (their values system; see Chapter 2), so they also have parallel differences in their needs hierarchies. If your most important values lean toward stimulation and self-direction, you prob- ably pay more attention to self-actualization needs. If power and achievement are at the top of your value system, status needs will likely be at the top of your needs hierarchy. A person’s values hierarchy can change over time, so his or her needs hierarchy also changes over time.18
Maslow’s Contribution to Motivation Although needs hierarchy theory has failed the reality test, Maslow deserves credit for bringing a more holistic, humanistic, and positive approach to the study of human motivation.19
• Holistic perspective. Maslow explained that the various needs should be studied together (holistically) because human behavior is typically initiated by more than one need at the same time. Previously, motivation experts had splintered needs or drives into dozens of categories, each studied in isolation.20
• Humanistic perspective. Maslow introduced the then-novel idea that higher-order needs are influenced by personal and social influences, not just instincts.21 In other words, he was among the first to recognize that human thoughts (including self-concept, social norms, past experience) play a role in motivation. Previous moti- vation experts had focused almost entirely on human instincts without considering that motivation could be shaped by human thought.
• Positive perspective. Maslow popularized the concept of self-actualization, suggesting that people are naturally motivated to reach their potential and that organizations and societies need to be structured to help people continue and develop this motiva- tion.22 This positive view of motivation contrasted with the dominant position that needs become activated by deficiencies such as hunger. Indeed, Maslow is considered a pioneer in positive organizational behavior. Positive OB says that focusing on the positive rather than negative aspects of life will improve organizational success and individual well-being (see Chapter 3). In other words, this approach advocates build- ing positive qualities and perspectives within individuals or institutions as opposed to focusing on trying to fix what might be wrong with them.23
How strong are your need for achievement and need for affiliation? Visit connect.mcgrawhill.com to estimate your need strength for these two needs.
LEARNED NEEDS THEORY Earlier in this chapter, we stated that drives are innate, whereas needs are shaped, amplified, or suppressed through self-concept, social norms, and past experience. Maslow noted this when he wrote that individual characteristics influence the strength of higher-order needs, such as the need to belong. Psychologist David McClelland further investigated the idea that need strength can be altered through social influences. In particular, he recognized that a
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129
person’s needs can be strengthened through reinforcement, learning, and social conditions. McClelland examined three “learned” needs: achievement, power, and affiliation.24
Need for Achievement People with a strong need for achievement (nAch) want to accomplish reasonably chal-
lenging goals through their own effort. They prefer working alone rather than in teams, and they choose tasks with a moderate degree of risk (i.e., neither too easy nor impossible to complete). High-nAch people also desire unambiguous feedback and recognition for their success. Money is a weak motivator, except when it provides feedback and recogni- tion.25 In contrast, employees with a low nAch perform their work better when money is used as an incentive. Successful entrepreneurs tend to have a high nAch, possibly because they establish challenging goals for themselves and thrive on competition.26
Need for Affiliation Need for affiliation (nAff ) refers to a desire to seek approval from others, conform to their wishes and expectations, and avoid conflict and confronta- tion. People with a strong nAff try to project a favorable image of themselves. They tend to actively support others and try to smooth out workplace conflicts. High nAff employees generally work well in coordinating roles to mediate conflicts and in sales positions where the main task is cultivating long-term relations. However, they tend to be less effective at allo- cating scarce resources and making other decisions that potentially generate conflict. People in decision-making positions must have a relatively low need for affiliation so their choices and actions are not biased by a personal need for approval.28
Need for Power People with a high need for power (nPow) want to exercise control over others and are concerned about maintaining their leadership position. They frequently rely on
persuasive communication, make more suggestions in meetings, and tend to pub- licly evaluate situations more frequently. McClelland pointed out that there are two types of nPow. Individu- als who enjoy their power for its own sake, use it to ad- vance personal interests, and
need for achievement (nAch)
A learned need in which people want to accomplish reasonably challenging goals and desire unambiguous feedback and recognition for their success.
need for affiliation (nAff)
A learned need in which people seek approval from others, conform to their wishes and expectations, and avoid conflict and confrontation.
need for power (nPow)
A learned need in which people want to control their environment, including people and material resources, to benefit either themselves (personalized power) or others (socialized power).
Heineken USA had been losing market share, and incoming CEO Dolf van den Brink (left in photo) soon discovered one major reason: Heineken’s staff needed more achievement motivation. To encourage more risk-oriented, entrepreneurial thinking, van den Brink held an all-employee pirate-themed event celebrating the company’s new aggressive values, such as “Hunt as a pack” and “Do what it takes to win, but be responsible.” “We need to be a nimble, humble, agile and an entrepreneurial company again,” explains van den Brink. Another Heineken executive adds: “To have a challenger mindset, we needed to unleash everyone’s inner pirate.” Van den Brink is also a role model for high achievement motivation. He had spent the previous four years doubling Heineken’s market share in the Democratic Republic of the Congo, in spite of militant uprisings. Heineken USA’s market share has since increased, and employees say they are much more risk-oriented.27
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130 Part Two Individual Behavior and Processes
wear their power as a status symbol have personalized power. Others mainly have a high need for socialized power because they desire power as a means to help others.29 McClelland argues that effective leaders should have a high need for socialized rather than personalized power. They must have a high degree of altruism and social responsibility and be concerned about the consequences of their own actions on others.
Learning Needs McClelland believed that needs can be learned (more accurately, strengthened or weakened), and the training programs he developed supported that prop- osition. In his achievement motivation program, trainees wrote achievement-oriented stories and practiced achievement-oriented behaviors in business games. They also com- pleted a detailed achievement plan for the next two years and formed a reference group with other trainees to maintain their new-found achievement motivation.30 Participants attending these achievement motivation programs subsequently started more new busi- nesses, had greater community involvement, invested more in expanding their businesses, and employed twice as many people compared with a matched sample of non-partici- pants. These training programs increased achievement motivation by altering participants’ self-concept and reinforcing their achievement experiences. When writing an achievement plan, for example, participants were encouraged (and supported by other participants) to experience the anticipated thrill of succeeding.
Visit connect.mcgrawhill.com for activities and test questions to help you learn about four-drive theory and other needs-based models of motivation.
FOUR-DRIVE THEORY One of the central messages of this chapter is that emotions are at the core of employee motivation. Across the social sciences, it is increasingly agreed upon that human beings have several hardwired drives, including social interaction, learning, and getting ahead. These drives generate emotions, which represent the prime movers or sources of effort of individual behavior. Most organizational behavior theories of motivation focus on the cognitive aspects of human motivation; four-drive theory is one of the few to recognize the central role of human emotions in the motivation process.31
According to four-drive theory, everyone has four drives: drive to acquire, drive to bond, drive to comprehend, and drive to defend. These drives are innate and universal, meaning that they are hardwired in our brains and are found in all human beings. They are also inde- pendent of one another. There is no hierarchy of drives, so one drive is neither dependent on nor inherently inferior or superior to another drive. Four-drive theory also states that these four drives are a complete set—there are no fundamental drives excluded from the model. Another key feature is that three of the four drives are proactive—we regularly try to fulfill them. Only the drive to defend is reactive—it is triggered by threat. Thus, any notion of fulfilling drives is temporary, at best.
Four-drive theory identified the four drives based on their considerable discussion in prior research (which we noted earlier in this chapter). These drives are:
• Drive to acquire. This is the drive to seek, take, control, and retain objects and personal experiences. The drive to acquire extends beyond basic food and water; it includes enhancing one’s self-concept through relative status and recognition in soci- ety.32 Thus, it is the foundation of competition and the basis of our need for esteem. Four-drive theory states that the drive to acquire is insatiable because the purpose of
four-drive theory
A motivation theory based on the innate drives to acquire, bond, learn, and defend that incorporates both emotions and rationality.
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Chapter Five Foundations of Employee Motivation 131
human motivation is to achieve a higher position than others, not just to fulfill one’s physiological needs.
• Drive to bond. This is the drive to form social relationships and develop mutual caring commitments with others. It explains why people form social identities by aligning their self-concept with various social groups (see Chapter 3). It may also explain why people who lack social contact are more prone to serious health prob- lems.33 The drive to bond motivates people to cooperate and consequently is a fundamental ingredient in the success of organizations and the development of societies.
• Drive to comprehend. This is the drive to satisfy our curiosity, to know and under- stand ourselves and the environment around us.34 When observing something that is inconsistent with or beyond our current knowledge, we experience a ten- sion that motivates us to close that information gap. In fact, studies have revealed that people who are removed from any novel information will crave even boring information; in one classic experiment, participants deprived of information eventually craved month-old stock reports!35 The drive to comprehend is related to the higher-order needs of growth and self-actualization described earlier.
• Drive to defend. This is the drive to protect ourselves physically and socially. Probably the first drive to develop, it creates a “fight-or-flight” response in the face of personal danger. The drive to defend goes beyond protecting our physical self. It includes de- fending our relationships, our acquisitions, and our belief systems.
How Drives Influence Motivation and Behavior Four-drive theory is derived from recent neuroscience research regarding the emotional marker process and how emo- tions are channeled into decisions and behavior.36 As we described in previous chapters, our perceptions of the world around us are quickly and nonconsciously tagged with emo- tional markers. According to four-drive theory, the four drives determine which emotions are tagged to incoming stimuli. If you arrive at work one day to see a stranger sitting in your office chair, you might quickly experience worry, curiosity, or both. These emotions are triggered by one or more of the four drives. In this example, the emotions produced are likely strong enough to demand your attention and motivate you to act on this observation.
Most of the time, we aren’t aware of our emotional experiences because they are subtle and fleeting. However, emotions do become conscious experiences when they are suffi- ciently strong or when we experience conflicting emotions. In these circumstances, our mental skill set relies on social norms, past experience, and personal values to direct the motivational force of our emotions to actions that deal with that situation (see Exhibit 5.3). In other words, our mental skill set chooses courses of action that are acceptable to soci- ety, are consistent with our own moral compass, and have a high probability of achieving the goal.37 This is the process described at the beginning of this chapter: Drives produce emotions, and various personal characteristics (self-concept, social norms, experience) translate these emotions into goal-directed needs, which are then directed into decisions and behavior.
Evaluating Four-Drive Theory Although four-drive theory was introduced re- cently, it is based on a deep foundation of research that dates back more than three de- cades. The drives have been identified from psychological and anthropological studies. Furthermore, Shalom Schwartz recently reported that four-drive theory maps well onto the ten dimensions in his circumplex model of personal values (see Chapter 2).38 The translation of drives into goal-directed behavior originates from considerable research on emotions and neural processes. The theory explains why needs vary from one person to the next, but avoids the assumption that everyone has the same needs hierarchy. Notice
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132 Part Two Individual Behavior and Processes
too that four-drive theory satisfies two of Maslow’s criteria for any motivation theory: It is holistic (it relates to all drives, not just one or two) and humanistic (it acknowledges the role of human thought and social influences, not just instinct). Four-drive theory also provides a much clearer understanding of the role of emotional intelligence in employee motivation and behavior. Employees with high emotional intelligence are more sensitive to competing demands from the four drives, are better able to avoid impulsive behavior from those drives, and can judge the best way to act to fulfill those drive demands in a social context.
Even with its well-researched foundations, four-drive theory is far from complete. Most experts would argue that one or two other drives exist that should be included. Further- more, social norms, personal values, and past experience probably don’t represent the full set of individual characteristics that translate emotions into goal-directed effort. For example, personality and self-concept probably also moderate the effect of drives on needs and needs on decisions and behavior.
Practical Implications of Four-Drive Theory The central advice from four-drive theory is that organizations should ensure that jobs and workplaces provide a balanced opportunity to fulfill the four drives.39 There are really two recommendations here. The first is that the best workplaces for employee motivation and well-being offer con- ditions that help employees fulfill all four drives. Employees continually seek fulfillment of their innate drives, so successful companies provide sufficient rewards, learning opportuni- ties, social interaction, and so forth, for all employees.
The second recommendation is that fulfillment of the four drives must be kept in bal- ance; that is, organizations should avoid too much or too little opportunity to fulfill each drive. The reason for this advice is that the four drives counterbalance one another. The drive to bond counterbalances the drive to acquire; the drive to defend counterbalances the drive to comprehend. An organization that fuels the drive to acquire without the drive to bond may eventually suffer from organizational politics and dysfunctional conflict. Change and novelty in the workplace will aid the drive to comprehend, but too much of it will trigger the drive to defend to such an extent that employees become territorial and resistant to change. Thus, the workplace should offer enough opportunity to keep all four drives in balance.
Drive to acquire
Social norms
Mental skill set channels emotional
forces created by drives
Goal-directed choice and effort
Personal values
Past experience
Drive to bond
Drive to comprehend
Drive to defend
EXHIBIT 5.3 Four-Drive Theory of Motivation
Source: Based on information in P. R. Lawrence and N. Nohria, Driven: How Human Nature Shapes Our Choices (San Francisco: Jossey-Bass, 2002).
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Chapter Five Foundations of Employee Motivation 133
Expectancy Theory of Motivation The theories described so far mainly explain the internal origins of employee motivation. But how do these drives and needs translate into specific effort and behavior? Four-drive theory recognizes that social norms, personal values, and past experience direct our effort, but it doesn’t offer any more detail. Expectancy theory, on the other hand, offers an elegant model based on cognitive logic to predict the chosen direction, level, and persistence of motivation. Essentially, the theory states that work effort is directed toward behaviors that people believe will lead to desired outcomes. In other words, we are motivated to achieve the goals with the highest expected payoff.41 As illustrated in Exhibit 5.4, an individual’s effort level depends on three factors: effort-to-performance (E-to-P) expectancy, performance- to-outcome (P-to-O) expectancy, and outcome valences. Employee motivation is influenced by all three components of the expectancy theory model. If any component weakens, moti- vation weakens.
• E-to-P expectancy. This is the individual’s perception that his or her effort will result in a particular level of performance. In some situations, employees may believe that they can unquestionably accomplish the task (a probability of 1.0). In other situa- tions, they expect that even their highest level of effort will not result in the desired performance level (a probability of 0.0). In most cases, the E-to-P expectancy falls somewhere between these two extremes.
• P-to-O expectancy. This is the perceived probability that a specific behavior or performance level will lead to a particular outcome. In extreme cases, employees
B&Q, the world’s third-largest home improvement retailer, tries to maintain a balanced fulfillment of the drive to acquire, bond, and comprehend (while minimizing the drive to defend). For example, the British retailer is known for fun activities where staff can fulfill their drive to bond. In one such activity, employees at all 330 B&Q stores simultaneously participated in a five-minute dance routine during store hours. The charity event attempted to break a world record flash mob. “It puts a smile on the faces of our staff which hopefully transfers into great customer service,” says one B&Q store manager about the flash mob event.40
expectancy theory
A motivation theory based on the idea that work effort is directed toward behaviors that people believe will lead to desired outcomes.
Visit connect.mcgrawhill.com for activities and test questions to help you learn about expectancy theory of motivation.
LO 5-4
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134 Part Two Individual Behavior and Processes
may believe that accomplishing a particular task (performance) will definitely result in a particular outcome (a probability of 1.0), or they may believe that successful performance will have no effect on this outcome (a probability of 0.0). More often, the P-to-O expectancy falls somewhere between these two extremes.
• Outcome valences. A valence is the anticipated satisfaction or dissatisfaction that an indi- vidual feels toward an outcome. It ranges from negative to positive. (The actual range doesn’t matter; it may be from –1 to 11 or from –100 to 1100.) An outcome valence represents a person’s anticipated satisfaction with the outcome.42 Outcomes have a pos- itive valence when they are consistent with our values and satisfy our needs; they have a negative valence when they oppose our values and inhibit need fulfillment.
EXPECTANCY THEORY IN PRACTICE One of the appealing characteristics of expectancy theory is that it provides clear guidelines for increasing employee motivation.43 Several practical applications of expectancy theory are listed in Exhibit 5.5 and are described on the following page.
Increasing E-to-P Expectancies E-to-P expectancies are influenced by the indi- vidual’s belief that he or she can successfully complete the task. Some companies increase this can-do attitude by assuring employees that they have the necessary competencies, clear role perceptions, and necessary resources to reach the desired levels of performance. An important part of this process involves matching employees’ competencies to job re- quirements and clearly communicating the tasks required for the job. Similarly, E-to-P expectancies are learned, so behavior modeling and supportive feedback (positive rein- forcement) typically strengthen the individual’s belief that he or she is able to perform the task.
Increasing P-to-O Expectancies The most obvious ways to improve P-to-O expec- tancies are to measure employee performance accurately and distribute more valued rewards to those with higher job performance. P-to-O expectancies are perceptions, so employees also need to believe that higher performance will result in higher rewards. Furthermore, they
Outcome 3
PerformanceEffort
1/2
Outcome 2 1/2
Outcome 1 1/2
Probability that a specific effort level will result in a specific performance level
E-to-P expectancy
Probability that a specific performance level will result in specific outcomes
P-to-O expectancy
Anticipated satisfaction from the outcome
ValenceEXHIBIT 5.4
Expectancy Theory of Motivation
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Chapter Five Foundations of Employee Motivation 135
need to know how that connection occurs, so leaders should use examples, anecdotes, and public ceremonies to illustrate when behavior has been rewarded.
Increasing Outcome Valences One size does not fit all when motivating and re- warding people. Organizational leaders need to find ways to individualize rewards or, where standard rewards are necessary, to identify rewards that do not have a negative valence for some staff. Consider the following story: Top-performing employees in one organization were rewarded with a one-week Caribbean cruise with the company’s executive team. Many were likely delighted, but at least one top-performer was aghast at the thought of going on a cruise with senior management. “I don’t like schmoozing, I don’t like feeling trapped. Why couldn’t they just give me the money?” she complained. The employee went on the cruise, but spent most of her time working in her stateroom.44
One other observation about increasing outcome valences is to watch out for counterva- lent outcomes that offset outcomes with positive valences. For example, several employees in one work unit were individually motivated to perform well because this achievement gave them a feeling of accomplishment and rewarded them with higher pay. But their perfor- mance was considerably lower when they worked together with others because peer pressure discouraged performance above a fairly low standard. In this situation, the positively valent outcomes (feeling of accomplishment, higher pay) were offset by the negatively valent out- come of peer pressure.
Overall, expectancy theory is a useful model that explains how people rationally figure out the best direction, intensity, and persistence of effort. It has been tested in a variety of situations and predicts employee motivation in different cultures.45 However, critics have a number of concerns with how the theory has been tested. Another concern is that expec- tancy theory ignores the central role of emotion in employee effort and behavior. The valence element of expectancy theory captures some of this emotional process, but only
EXPECTANCY THEORY COMPONENT OBJECTIVE APPLICATIONS
EXHIBIT 5.5 Practical Applications of Expectancy Theory
P → O expectancies
Outcome valences
To increase the employee’s belief that s/he is capable of performing the job successfully
To increase the employee’s belief that his/her good performance will result in certain (valued) outcomes
To increase the employee’s expected value of outcomes resulting from desired performance
• Select people with the required skills and knowledge. • Provide required training and clarify job requirements. • Provide sufficient time and resources. • Assign simpler or fewer tasks until employees can master
them. • Provide examples of similar employees who have successfully
performed the task. • Provide coaching to employees who lack self-confidence.
• Measure job performance accurately. • Clearly explain the outcomes that will result from successful
performance. • Describe how the employee’s rewards were based on past
performance. • Provide examples of other employees whose good perfor-
mance has resulted in higher rewards.
• Distribute rewards that employees value. • Individualize rewards. • Minimize the presence of countervalent outcomes.
E → P expectancies
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136 Part Two Individual Behavior and Processes
peripherally.46 Finally, expectancy theory outlines how expectancies (probability of out- comes) affect motivation, but it doesn’t explain how employees develop these expectancies. Two theories that provide this explanation are organizational behavior modification and social cognitive theory, which we describe next.
Organizational Behavior Modification and Social Cognitive Theory
Expectancy theory states that motivation is determined by employee beliefs about expected performance and outcomes. But how do employees learn these expectancies? Finding the answer to this question directs us to two theories: organizational behavior modification (OB Mod) and social cognitive theory. Although these theories explain how people learn what to expect from their actions, they are also theories of motivation because, as in expectancy the- ory, the learned expectancies affect the person’s direction, intensity, and persistence of effort.
ORGANIZATIONAL BEHAVIOR MODIFICATION For most of the first half of the 1900s, the dominant paradigm about managing individual behavior was behaviorism, which argues that a good theory should rely exclusively on behav- ior and the environment and ignore nonobservable cognitions and emotions.47 Although behaviorists don’t deny the existence of human thoughts and attitudes, they view them as unobservable and, therefore, irrelevant to scientific study. A variation of this paradigm, called organizational behavior modification (OB Mod), eventually entered organizational studies of motivation and learning.48
A-B-Cs of OB Mod The core elements of OB Mod are depicted in the A-B-C model shown in Exhibit 5.6. Essentially, OB Mod attempts to change behavior (B) by managing its antecedents (A) and consequences (C).49 Consequences are events following a particular be- havior that influence its future occurrence, such as the compliments or teasing received from coworkers when the employee wears safety goggles. Consequences also include no outcome at all, such as when no one says anything about how well you have been serving customers.
Antecedents are events preceding the behavior, informing employees that a particular ac- tion will produce specific consequences. An antecedent may be a sound from your smart- phone signaling that a text message has arrived. Or it might be your supervisor’s request to
Warning light flashes on operator’s console
Example
Behavior What the person says or does
Operator switches off the machine’s power source
Consequences What happens after the behavior
Coworkers thank operator for stopping the machine
Antecedents What happens before the behavior
EXHIBIT 5.6 A-B-Cs of Organizational Behavior Modification
Sources: Adapted from T. K. Connellan, How to Improve Human Performance (New York: Harper & Row, 1978), p. 50; F. Luthans and R. Kreitner, Organizational Behavior Modification and Beyond (Glenview, IL: Scott, Foresman, 1985), pp. 85–88.
LO 5-5
organizational behavior
modification
A theory that explains employee behavior in terms of the antecedent conditions and consequences of that behavior.
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Chapter Five Foundations of Employee Motivation 137
complete a specific task by tomorrow. Notice that antecedents do not cause behavior. The sound from your smartphone doesn’t cause us to open the text message. Rather, the sound (antecedent) is a cue telling us that if we check the message list on our phone (behavior), we are certain to find a new message (consequence).
OB Mod identifies four types of consequences (called the contingencies of reinforcement).50 Positive reinforcement occurs when the introduction of a consequence increases or maintains the frequency or future probability of a specific behavior. An example of this is receiving praise after completing a project. Punishment occurs when a consequence decreases the fre- quency or future probability of a behavior. Most of us would consider being demoted or being criticized by our coworkers as forms of punishment. A third type of consequence is extinction. This consequence occurs when the target behavior decreases because no conse- quence follows it. For instance, research suggests that performance tends to decline when managers stop congratulating employees for their good work.51
The fourth consequence in OB Mod, negative reinforcement, is often confused with pun- ishment. It’s actually the opposite; it occurs when the removal or avoidance of a consequence increases or maintains the frequency or future probability of a specific behavior. For exam- ple, managers apply negative reinforcement when they stop criticizing employees whose sub- standard performance has improved.
Which of these four consequences works best? In most situations, positive reinforce- ment should follow desired behaviors, and extinction (do nothing) should follow undesir- able behaviors. This approach is preferred because punishment and negative reinforcement generate negative emotions and attitudes toward the punisher (e.g., supervisor) and organi- zation. However, some form of punishment (dismissal, suspension, demotion, etc.) may be necessary for extreme behaviors, such as deliberately hurting a coworker or stealing inven- tory. Indeed, research suggests that under certain conditions, punishment maintains a sense of fairness.52
Along with the four consequences, OB Mod considers the frequency and timing of these reinforcers (called the schedules of reinforcement).53 The most effective reinforcement sched- ule for learning new tasks is continuous reinforcement—providing positive reinforcement af- ter every occurrence of the desired behavior. The best schedule for motivating employees is a variable ratio schedule in which employee behavior is reinforced after a variable number of times. Salespeople experience variable ratio reinforcement because they make a successful sale (the reinforcer) after a varying number of client calls. The variable ratio schedule makes behavior highly resistant to extinction, because the reinforcer is never expected at a particu- lar time or after a fixed number of accomplishments.
Evaluating OB Mod Everyone uses organizational behavior modification principles in one form or another to motivate others. We thank people for a job well done, are silent when displeased, and sometimes try to punish those who go against our wishes. OB Mod also occurs in various formal programs to reduce absenteeism, improve task performance, encourage safe work behaviors, and have a healthier lifestyle. Burger Boat Company, a lux- ury yacht builder in Wisconsin, has a safety incentive program that reinforces safe work be- haviors. Ochsner Health System, which operates hospitals and clinics throughout Louisiana, has a wellness incentive program that provides positive reinforcement in the form of cash rewards (up to $300 in cash rewards and $2,000 in health insurance discounts each year) for engaging in healthy behaviors.54 Global Connections 5.1 describes an innovative and in- creasingly popular behavior modification strategy that relies on “gamification”—reinforcing behavior through online games in which employees earn “badges” and compete for top po- sitions on leader boards.
In spite of its widespread use, organizational behavior modification has a number of lim- itations. One limitation is “reward inflation,” in which the reinforcer is eventually consid- ered an entitlement. For this reason, most OB Mod programs must run infrequently and for a short duration. Another concern is that the variable ratio schedule of reinforcement tends to create a lottery-style reward system, which might be viewed as too erratic for formal re-
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138 Part Two Individual Behavior and Processes
Reinforcing Work Behavior through Gamification
When James Sanders meets a client, the Deloitte Touche Tohmatsu manager documents the client’s name, where they met, and what was the topic. The information is recorded on the professional services firm’s internal social network site, where it is shared with other staff. Documenting meetings avoids the problem of other staff making duplicate visits, and it helps everyone know which coworkers to contact regarding that client. Deloitte employees value this knowledge sharing, but their motivation is further strengthened from game-based positive reinforcement. Similar to the social networking site Foursquare, Deloitte employees earn virtual “badges” for recording their client meetings and, with enough badges, can become “mayor” of that client (the mayor coordinates interactions of other Deloitte staff with that client). The company also awards badges for blogging about new ideas on the social network site, for completing online train- ing sessions, and for a host of other desired behav- iors. Employees with the most badges are ranked on leader boards in various categories. Employees can also display their badges on LinkedIn and other public social network sites. Deloitte has also introduced game-based posi- tive reinforcement at its leadership academy. Learners receive a badge for each content module they complete. They also earn surprise secret badges (called snowflake badges). For example, ev- eryone in a department might earn a snowflake badge if they all happen to watch the same learning video during the same week. Leader boards show the top ten badge winners for each of the acade- my’s three learning content levels. The leader boards are reset each week, so everyone has an equal chance of becoming a top scorer the next week. This game-based reinforcement seems to
work. The number of learners returning to the leadership academy each week has increased by 37 percent, they are spending more time at the learning site, and they are com- pleting more learning modules. Frank Farrall, Deloitte Digital lead partner, says leader boards provide strong reinforcement, particularly for more competitive staff. “It’s meant to incentivize you from a peer-comparison point,” he says. “Any time you put a leader board up, the increase in activity is dramatic and noticeable.” More generally, he suggests that Deloitte’s game-based pos- itive reinforcement taps into everyone’s natural motivation to engage in the reinforced behavior. “If you can gamify the process, you are rewarding the behavior and it’s like a dopa- mine release in the brain,” Farrall explains. “Humans like a game.”55
global connections 5.1
wards and is unpopular to people who dislike gambling. Probably the most significant prob- lem is OB Mod’s radical view that behavior is learned only through personal interaction with the environment.56 This view is no longer accepted; instead, experts recognize that people also learn and are motivated by observing others and inferring possible consequences of their actions. This learning process is explained by social cognitive theory.
SOCIAL COGNITIVE THEORY Social cognitive theory states that much learning and motivation occurs by observing and modeling others, as well as by anticipating the consequences of our behavior.57 Although observation and modeling (imitation) have been studied for many years as sources of moti- vation and learning, social scientist Albert Bandura reframed these ideas within a cognitive
social cognitive theory
A theory that explains how learning and motivation occur by observing and modeling others as well as by anticipating the consequences of our behavior.
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Chapter Five Foundations of Employee Motivation 139
(internal thoughts) perspective as an alternative to the behaviorist approach. There are sev- eral pieces to social cognitive theory, but the three most relevant to employee motivation are learning behavior consequences, behavior modeling, and self-regulation.
Learning Behavior Consequences People learn the consequences of behavior by observing or hearing about what happened to other people, not just by directly experiencing the consequences.58 Hearing that a coworker was fired for being rude to a client increases your perception that rude behavior will result in being fired. In the language of expectancy theory, learning behavior consequences changes a person’s perceived P-to-O probability. Furthermore, people logically anticipate consequences in related situations. For instance, the story about the fired employee might also strengthen your P-to-O expectancy that being rude toward coworkers and suppliers (not just clients) will get you fired.
Behavior Modeling Along with observing others, people learn by imitating and prac- ticing their behaviors.59 Direct sensory experience helps people acquire tacit knowledge and skills, such as the subtle person–machine interaction while driving a vehicle. Behavior mod- eling also increases self-efficacy (see Chapter 3), because people gain more self-confidence after observing others and performing the task successfully themselves. Self-efficacy particu- larly improves when observers identify with the model, such as someone who is similar in age, experience, gender, and related features.
Self-Regulation An important feature of social cognitive theory is that human beings set goals and engage in other forms of intentional, purposive action. They establish their own short- and long-term objectives, choose their own standards of achievement, work out a plan of action, consider back-up alternatives, and have the forethought to anticipate the conse- quences of their goal-directed behavior. Furthermore, people self-regulate by engaging in self-reinforcement; they reward and punish themselves for exceeding or falling short of their self-set standards of excellence.60 For example, you might have a goal of completing the rest of this chapter, after which you reward yourself by having a snack. Raiding the refrigerator is a form of self-induced positive reinforcement for completing this reading assignment.
Self-regulation has become an important topic in the social sciences. It is also the corner- stone of motivation through goal setting and feedback, which we discuss next.
Goal Setting and Feedback CalPERS—the California Public Employees’ Retirement System—has challenging goals for staff at its customer contact center in Sacramento.61 The organization aims to have 95 percent of client calls answered within 2.5 minutes. It also wants customers put on hold for no longer than 2.5 minutes. Another goal is that less than 5 percent of CalPERS clients hang up before the call is handled by someone at the contact center (called the abandonment rate). Along with these specific goals, the organization keeps track of how many calls are received (about 650,000 per year), how many callers are waiting, and how long each call takes (between 6 and 7 minutes, on average). CalPERS employees not only know these goals; they probably have some form of visual feedback. Many contact centers in other organizations have large elec- tronic screens showing statistics for these key performance indicators.
Visit connect.mcgrawhill.com for activities and test questions to help you learn about goal setting.
self-reinforcement
Reinforcement that occurs when an employee has control over a reinforcer but doesn’t “take” it until completing a self-set goal.
LO 5-6
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140 Part Two Individual Behavior and Processes
Customer contact centers partly motivate employees through goal setting, which is the process of motivating employees and clarifying their role perceptions by establishing perfor- mance objectives. Goal setting potentially improves employee performance in two ways: (1) by amplifying the intensity and persistence of effort and (2) by giving employees clearer role perceptions so that their effort is channeled toward behaviors that will improve work perfor- mance. Goal setting is more complex than simply telling someone to “do your best.” It re- quires several specific characteristics.62 One popular acronym—SMARTER—captures these characteristics fairly well:63
• Specific. Employees put more effort into a task when they work toward goals that state what needs to be accomplished, how it should be accomplished, and where, when, and with whom it should be accomplished. Specific goals clarify performance expectations, so employees can direct their effort more efficiently and reliably.
• Measurable. Setting goals doesn’t have much value if you don’t know whether they have been achieved. That’s why goals need to be measurable. This measurement ide- ally includes how much (quantity), how well (quality), and at what cost the goal was achieved. Measurement can be a problem however, because people focus only on goals that are easily measured.65
• Achievable. Ideally, goals should be challenging without being so difficult that em- ployees lose their motivation to achieve them.66 This idea reflects the E-to-P expec- tancy described earlier in this chapter. The lower the E-to-P expectancy that the goal can been accomplished, the less committed (motivated) the employee is to the goal.
Jeff Gross is a big fan of goal setting. “Setting goals is one of the most important aspects of building and maintaining a successful business,” says the president of GOH Lending in Anchorage, Alaska, and Costa Mesa, California. Gross explains that goals are the bridges between ideas and achievements. “It is the best way to tell whether a business is improving and can shed light on the areas that need improvement,” he says. Gross also believes that goals can stretch performance. His latest goal is to double business in the Anchorage office within one year without easing lending requirements.64
What is your goal orientation? Visit connect.mcgrawhill.com to assess whether you have more of a learning or avoidance goal orientation.
goal setting
The process of motivating employees and clarifying their role perceptions by establishing performance objectives.
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Chapter Five Foundations of Employee Motivation 141
• Relevant. Goals need to be relevant to the individual’s job and within his or her control. For example, a goal to reduce waste materials would have little value if employees don’t have much control over waste in the production process.
• Time-framed. Goals need a due date. They should specify when the objective should be completed or when it will be assessed for comparison against a standard.
• Exciting. Goals tend to be more effective when employees are committed to them, not just compliant. Challenging goals tend to be more exciting for most (but not all) employees because they are more likely to fulfill a person’s achievement or growth needs when the goal is achieved. Goal commitment also increases when employees are involved in goal setting.67
• Reviewed. The motivational value of goal setting depends on employees receiving feedback about reaching those goals.68 Measurement (listed on the previous page) is part of that feedback, but so is the process of reviewing goal progress (during) and accom- plishment (after). Reviewing goal progress and accomplishment helps employees redi- rect their effort. It is also a potential source of recognition that fulfills growth needs.
BALANCED SCORECARD One organization-wide approach to goal setting is the balanced scorecard (BSC), which attempts to represent objectives across various stakeholders and processes. The balanced scorecard translates the organization’s vision and mission into specific, measurable key per- formance indicators (KPIs) related to financial, customer, internal, and learning/growth (i.e., human capital) processes. These goals cascade down to departments and employees within those departments. For example, an airline might include on-time performance as one of its customer process goals and number of hours of safety training per employee as a learning and growth process goal. These specific goals are linked to various work units and employees. BSC goals are often weighted and scored to create a composite measure of goal achievement across the organization each year.
Several organizations have introduced balanced scorecards, including Volkswagen de Brasil, the Royal Canadian Mounted Police, and the Richmond School Board in Virginia. The Richmond School Board BSC has six goals (e.g., learning experiences, community engage- ment), each of which has several outcome measures. For instance, the learning experiences goal includes 11 measures, such as percentage of students taking online courses, percentage of graduating seniors taking SAT or ACT exams, and number of students scoring “advanced proficient” on one or more state-mandated Standards of Learning (SOL) tests. “Our BSC lays out a challenging set of process measures and targets for us, and it holds us accountable for reaching our goals,” explains Yvonne Brandon, who recently stepped down as superin- tendent of Richmond Public Schools.69
In spite of their popularity, BSCs present a number of challenges. As with most goal setting and feedback systems, the quality of the process is only as good as the goals estab- lished and the feedback available. Some companies choose goals that are easily measured rather than valuable. Others go to great lengths to measure internal processes, but these measures create a paperwork bureaucracy that raises overhead costs and employee resent- ment for diverting resources from the company’s main functions. One report from the Royal Canadian Mounted Police (RCMP), which has a highly-regarded BSC, warned that people get caught up on the measures, whereas they need discipline to focus on achieving BSC goals. The RCMP report also noted that BSC systems suffer when they become overburdened with too many indicators and when those indicators don’t reso- nate with employees.70
CHARACTERISTICS OF EFFECTIVE FEEDBACK Feedback—information that lets us know whether we have achieved the goal or are properly directing our effort toward it—is a critical partner in goal setting. Along with clarifying role
balanced scorecard
A goal-setting and reward system that translates the organization’s vision and mission into specific, measurable performance goals related to financial, customer, internal, and learning/growth (i.e., human capital) processes.
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142 Part Two Individual Behavior and Processes
perceptions and improving employee skills and knowledge, feedback motivates when it is constructive and when employees have strong self-efficacy.71 Effective feedback has many of the same characteristics as effective goal setting. It should be specific and relevant, such that the information refers to specific metrics (e.g., sales increased by 5 percent last month) and to the individual’s behavior or outcomes within his or her control. Feedback should also be timely; the information should be available soon after the behavior or results occur so that employees see a clear association between their actions and the consequences. Effective feed- back is also credible. Employees are more likely to accept feedback from trustworthy and believable sources.
The final characteristic of effective feedback is that it should be sufficiently frequent. How frequent is “sufficiently”? The answer depends on at least two things. One consider- ation is the employee’s knowledge and experience with the task. Feedback is a form of re- inforcement, so employees working on new tasks should receive more frequent feedback because they require more behavior guidance and reinforcement. Employees who perform repetitive or familiar tasks can receive less frequent feedback. The second factor is how long it takes to complete the task (i.e., its cycle time). Feedback is necessarily less frequent in jobs with a long cycle time (e.g., executives, scientists) than in jobs with a short cycle time (e.g., grocery store cashiers).
Feedback Through Strengths-Based Coaching Forty years ago, Peter Drucker argued that leaders are more effective when they focus on strengths rather than weaknesses. “The effective executive builds on strengths—their own strengths, the strengths of superiors, colleagues, subordinates; and on the strength of the situation,” wrote the late management guru.72 Rox Ltd. is one of many organizations to apply this strengths-based perspective to employee feedback. “It’s important to reward and encourage strengths. Instead of looking at weakness, look at areas for development,” says Kyron Keogh, co-founder of the award-winning luxury retail jewelry chain headquartered in Glasgow, Scotland. “It’s vital to ensure that staff stay motivated and upbeat in a sales environment.”73
This positive approach to feedback is the essence of strengths-based coaching (also known as appreciative coaching)—maximizing employees’ potential by focusing on their strengths rather than weaknesses.74 In strengths-based coaching, employees describe areas of work where they excel or demonstrate potential. The coach guides this discussion by asking exploratory questions that guide employees to discover ways of leveraging this strength. Situational barriers are identified, as well as strategies to overcome those barriers to leverage the employee’s potential.
Strengths-based coaching can potentially motivate employees because they inherently seek feedback about their strengths, not their flaws. Thus, strengths-based feedback is
strengths-based coaching
A positive organizational behavior approach to coaching and feedback that focuses on building and leveraging the employee’s strengths rather than trying to correct his or her weaknesses.
Standard Chartered Bank is a strong advocate of strengths-based employee feedback and coaching. The London-based financial institution, whose operations are mostly in Asia and Africa, trains its managers to pay attention to each employee’s talents and strengths, and to focus on what each person does best. “Our culture is very much based on the positive psychology movement of playing to strengths,” explains a Standard Chartered executive. “We know that when people are doing what they like doing, they are going to be far more productive than if they are in roles where there is less interest.” This strengths-based approach is partly responsible for Standard Chartered’s high employee engagement scores and ranking on several best places to work lists.75
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Chapter Five Foundations of Employee Motivation 143
consistent with the process of self-enhancement (see Chapter 3). Strengths-based coaching also makes sense because personality becomes quite stable by the time an individual starts his/her early career, and this limits the flexibility of the person’s interests, preferences, and competencies.76 In spite of these research observations, most companies focus goal setting and feedback on tasks that employees are performing poorly. After the initial polite compli- ments, many coaching or performance feedback sessions analyze the employee’s weaknesses, including determining what went wrong and what the employee needs to do to improve. These inquisitions sometimes produce so much negative feedback that employees become defensive; they can also undermine self-efficacy, thereby making the employee’s performance worse rather than better. By focusing on weaknesses, companies fail to realize the full potential of the employee’s strengths.77
SOURCES OF FEEDBACK Feedback can originate from nonsocial or social sources. Nonsocial sources provide feed- back without someone communicating that information. Employees at contact centers view electronic displays showing how many callers are waiting and the average time they have been waiting. Nova Chemicals operators receive feedback from a computer screen that monitors in real time the plant’s operational capacity, depicted as a gently flowing green line, and actual production output, shown as a red squiggly line. Soon after Nova installed the feedback system, employees engaged in friendly bouts of rivalry to deter- mine who could keep the actual production output as close as possible to the plant’s maximum capacity.78
Corporate intranets allow many executives to receive feedback instantaneously on their computer, usually in the form of graphic output on an executive dashboard. Almost half of Microsoft’s employees use a dashboard to monitor project deadlines, sales, and other met- rics. Microsoft CEO Steve Ballmer regularly reviews dashboard results in one-on-one meet- ings with his division leaders. “Every time I go to see Ballmer, it’s an expectation that I bring my dashboard with me,” says the head of the Microsoft Office division.79
Multisource (360-Degree) Feedback Multisource (360-degree) feedback is a social form of feedback that has been widely used in organizations. As the name implies, multisource feedback is information about an employee’s performance collected from a full circle of people, including subordinates, peers, supervisors, and customers. Multisource feedback tends to provide more complete and accurate information than feedback from a supervisor alone. It is particularly useful when the supervisor is unable to observe the em- ployee’s behavior or performance throughout the year. Lower-level employees also feel a greater sense of fairness and open communication when they are able to provide upward feedback about their boss’s performance.80
However, multisource feedback also creates challenges. Having several people review so many other people can be expensive and time-consuming. With multiple opinions, the 360-degree process can produce ambiguous and conflicting feedback, so employees may require guidance to interpret the results. A third concern is that peers may provide inflated rather than accurate feedback to avoid conflicts during the forthcoming year. A final concern is that employees experience a stronger emotional reaction when they receive critical feedback from many people rather than from just one person (such as the boss). “Initially you do take it personally,” admits a manager at software maker Autodesk. “[360-degree feedback] is meant to be constructive, but you have to internally battle that.”81
Choosing Feedback Sources With so many sources of feedback—multisource feedback, executive dashboards, customer surveys, equipment gauges, nonverbal communi- cation from your boss—which one works best under which conditions? The preferred feed- back source depends on the purpose of the information. To learn about their progress
multisource (360-degree)
feedback
Information about an employee’s performance collected from a full circle of people, including subordinates, peers, supervisors, and customers.
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144 Part Two Individual Behavior and Processes
toward goal accomplishment, employees usually prefer nonsocial feedback sources, such as computer printouts or feedback directly from the job. This is because information from nonsocial sources is considered more accurate than information from social sources. Negative feedback from nonsocial sources is also less damaging to self-esteem. In contrast, social sources tend to delay negative information, leave some of it out, and distort the bad news in a positive way.82 When employees want to improve their self-image, they seek out positive feedback from social sources. It feels better to have coworkers say that you are performing the job well than to discover this from a computer screen.
EVALUATING GOAL SETTING AND FEEDBACK Goal setting represents one of the “tried-and-true” theories in organizational behavior, so much so that it is rated by experts as one of the top OB theories in terms of validity and usefulness.83 In partnership with goal setting, feedback also has an excellent reputation for improving em- ployee motivation and performance. At the same time, putting goal setting into practice can create problems.84 One concern is that goal setting tends to focus employees on a narrow subset of measurable performance indicators while ignoring aspects of job performance that are difficult to measure. The saying, “What gets measured, gets done” applies here.
A second problem is that when goal achievement is tied to financial rewards, many em- ployees are motivated to set easy goals (while making the boss think they are difficult) so that they have a higher probability of receiving the bonus or pay increase. As a former CEO at Ford once quipped: “At Ford, we hire very smart people. They quickly learn how to make relatively easy goals look difficult!”85 A third problem is that setting performance goals is effective in established jobs but seems to interfere with the learning process in new, complex jobs. Thus, we need to be careful not to apply goal setting where an intense learning process is occurring.
Organizational Justice Foxconn received unwanted attention a few years ago for poor working conditions at its plants throughout China. Now, the Taiwan-based company that manufactures Apple products faces another employee motivation problem. Foxconn pays lower wages to employees at its factory in Henan province and other provinces with high unemployment. But the company tempo- rarily transfers many of these workers to higher-wage plants, such as Shenzhen near Hong Kong, for training or to assist with higher workloads at those sites. The low-wage employees from Henan soon discover how much more their Shenzhen coworkers earn, which creates feelings of inequity. “It feels like Henan workers are second-class citizens at Foxconn,” com- plains an employee from Henan who also worked at the higher-wage Shenzhen factory.86
Most organizational leaders know that treating employees fairly is both morally correct and good for employee motivation, loyalty, and well-being. Yet the feelings of injustice felt by some Foxconn employees are regular occurrences in the workplace. To minimize these incidents, we need to first understand that there are two forms of organizational justice: distributive justice and procedural justice.87 Distributive justice refers to perceived fairness in the outcomes we receive compared to our contributions and the outcomes and contribu- tions of others. Procedural justice, on the other hand, refers to fairness of the procedures used to decide the distribution of resources.
EQUITY THEORY At its most basic level, the employment relationship is about employees exchanging their time, skills, and behavior for pay, fulfilling work, skill development opportunities, and so forth. What is considered “fair” in this exchange re- lationship varies with each person and situation. An equality principle operates when we believe that everyone in the
distributive justice
Perceived fairness in the individual’s ratio of outcomes to contributions relative to a comparison other’s ratio of outcomes to contributions.
procedural justice
Perceived fairness of the procedures used to decide the distribution of resources.
LO 5-7
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Chapter Five Foundations of Employee Motivation 145
debating point DOES EQUITY MOTIVATE MORE THAN EQUALITY?88
It seems obvious that employees with higher performance, skills, or other contributions to the organization should receive more generous pay and other rewards. Increasing the pay differential (wage dispersion) between high and low contributors should boost employee motivation to achieve a higher standard of perfor- mance. It should also increase company performance by motivat- ing the top performers to stay and the bottom performers to leave. A large wage dispersion is also consistent with justice and fair- ness. Differentiating rewards based on employee performance, skills, and other forms of contribution is consistent with the princi- ple of meritocracy. It is also consistent with the principle of justice, which states that those who contribute more should receive more in return (Chapter 2). Furthermore, performance-based pay is one of the pillars of high performance work practices (see Chapter 1). But workplaces that have large wage dispersions might not be receiving the performance dividends they expect. Several (but not all) studies have found that sports teams with relatively small pay differences among team members perform better than sport teams with relatively high pay differences. Teams that pay huge salaries or bonuses to stars do not score more points or win more games. Also, turnover among players and managers tends to increase
with the size of the wage dispersion. One recent study extended these observations to all industries. Companies that have a higher dispersion of wage increases (larger increases to higher paid staff) perform worse than companies with an equal dispersion of wage increases. Another study reported that information technol- ogy companies with larger salary differences among top manage- ment teams had worse shareholder returns and market-to-book value compared with IT companies with less pay inequality. Why would larger pay ranges undermine rather than enhance employee and organizational performance? One reason is that pay differences produce status differences, which can under- mine cooperation among employees. A second reason is that large pay differences might increase (rather than decrease) feel- ings of injustice. Most people think they are above average, so large pay differences clearly place many employees below their self-evaluations. Also, employees tend to underestimate the con- tribution of higher-paid coworkers and assume those higher-paid coworkers also receive other rewards (such as preferential treat- ment). In short, lower-paid employees often believe higher-paid employees are overpaid, which reduces the lower-paid workers’ motivation and performance.
group should receive the same outcomes, such as when everyone gets subsidized meals in the company cafeteria. The need principle is applied when we believe that those with the greatest need should receive more outcomes than others with less need. The equity principle infers that people should be paid in proportion to their contribution. The equity principle is the most common distributive justice rule in organizational settings, so let’s look at it in more detail.
Feelings of equity are explained by equity theory, which says that employees determine feelings of equity by comparing their own outcome/input ratio to the outcome/input ratio of some other person.89 As Exhibit 5.7 illustrates, the outcome/input ratio is the value of the out- comes you receive divided by the value of the inputs you provide in the exchange relationship. Inputs include such things as skill, effort, reputation, performance, experience, and hours worked. Outcomes are what employees receive from the organization, such as pay, promo- tions, recognition, interesting jobs, and opportunities to improve their skills and knowledge.
Equity theory states that we compare our outcome/input ratio with that of a comparison other.90 The comparison other might be another person or group of people in other jobs (e.g., comparing your pay with the CEO’s pay) or another organization. Some research sug- gests that employees frequently collect information on several referents to form a “general- ized” comparison other.91 For the most part, however, the comparison other varies from one person to the next and is not easily identifiable.
The comparison of our own outcome/input ratio with the ratio of someone else results in perceptions of equity, underreward inequity, or overreward inequity. In the equity condi- tion, people believe that their outcome/input ratio is similar to the ratio of the comparison other. In the underreward inequity situation, they believe their outcome/input ratio is lower than the comparison other’s ratio. In the overreward inequity condition, people believe their ratio of outcomes/inputs is higher than the comparison other’s ratio.
equity theory
A theory explaining how people develop perceptions of fairness in the distribution and exchange of resources.
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146 Part Two Individual Behavior and Processes
Inequity and Employee Motivation How do perceptions of equity or inequity affect employee motivation? The answer is illustrated in Exhibit 5.8. When people believe they are under- or overrewarded, they experience negative emotions (called inequity ten- sion). As we have pointed out throughout this chapter, emotions are the engines of motiva- tion. In the case of inequity, people are motivated to reduce the emotional tension. Imagine the lower-wage Foxconn employee from Henan working beside and performing the same tasks as the higher-wage Shenzhen coworkers. Most people have a strong emotional re- sponse, and this emotion nags them until they take steps to correct the perceived inequity.
There are several ways to try to reduce the inequity tension.92 Let’s consider each of these in the context of underreward inequity. One action is to reduce our inputs so the outcome/ input ratio is similar to the higher-paid coworker. Some employees do this by working more slowly, offering fewer suggestions, and engaging in less organizational citizenship behavior. A second action is to increase our outcomes. Some people who think they are underpaid ask for a pay raise. Others make unauthorized use of company resources. A third behavioral re- sponse is to increase the comparison other’s inputs. You might subtly ask the better-paid coworker to do a larger share of the work, for instance. A fourth action is to reduce the comparison other’s outcomes. This might occur by ensuring that the coworker gets less desirable jobs or working conditions. Another action, though uncommon, is to ask the com- pany to reduce the coworker’s pay so it is the same as yours.
A fifth action is perceptual rather than behavioral. It involves changing our beliefs about the situation. For example you might believe that the coworker really is doing more (e.g., working longer hours) for that higher pay. Alternatively, we might change our perceptions of the value of some outcomes. For example, you might initially feel it is unfair that a coworker gets more
Own outcomes
Your Own Outcome/Input Ratio
Compare own ratio with
other’s ratio
Perceptions of equity or inequity
• Pay/benefits • Recognition • Learning
• Promotions • Workspace • Interesting job
Own inputs • Skill • Effort • Performance
• Reputation • Hours • Experience
wnn
o
Other’s outcomes
Comparison Other’s Outcome/Input Ratio
• Pay/benefits • Recognition • Learning
• Promotions • Workspace • Interesting job
Other’s inputs • Skill • Effort • Performance
• Reputation • Hours • Experience
EXHIBIT 5.7
Equity Theory Model
• Change our inputs • Change our outcomes • Change other’s inputs • Change other’s outcomes • Change our perceptions • Change comparison other • Leave the field
Actions that reduce inequity tension
Perceived inequity
Inequity tension
(negative emotions)
Motivation to reduce tension
EXHIBIT 5.8 Motivational Effects of Inequity Perceptions
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Chapter Five Foundations of Employee Motivation 147
work-related travel than you do, but later you conclude that this travel is more inconvenient than desirable. A sixth action to re- duce the inequity tension is to change the comparison other. Rather than compare yourself with the higher-paid coworker, you might increasingly compare yourself with a friend or neigh- bor who works in a similar job. Finally, if the inequity tension is strong enough and can’t be reduced through other actions, you might leave the field. This occurs by moving to another depart- ment, joining another company, or keeping away from the work site where the overpaid coworker is located.
People who feel overreward inequity would reverse these ac- tions. Some overrewarded employees reduce their feelings of in- equity by working harder; others encourage the underrewarded coworker to work at a more leisurely pace. A common reaction, however, is that the overrewarded employee changes his or her perceptions to justify the more favorable outcomes, such as be- lieving the assigned work is more difficult or his or her skills are more valuable than the lower-paid coworker. As the late author Pierre Burton once said: “I was underpaid for the first half of my life. I don’t mind being overpaid for the second half.”93
How sensitive are you to inequities? Visit connect.mcgrawhill.com to assess your degree of equity sensitivity as well as to assist your learning on organizational justice.
Individual Differences: Equity Sensitivity People vary in their equity sensitiv- ity, that is, how strongly they feel about outcome/input ratios with others.94 At one end of the equity sensitivity continuum are people who are tolerant of situations where they are underrewarded. They might still prefer equal outcome/input ratios, but they don’t mind if others receive more than they do for the same inputs. In the middle are people who fit the standard equity theory model; they want their outcome/input ratio to be equal to the out- come/input ratio of the comparison other. At the other end of the equity sensitivity contin- uum are people who feel more comfortable when they receive proportionately more than others. They might accept having the same outcome/input ratio as others, but they would prefer receiving more than others performing the same work.
Evaluating Equity Theory Equity theory is widely studied and quite successful at predicting various situations involving feelings of workplace injustice.95 However, equity theory isn’t so easy to put into practice because it doesn’t identify the comparison other and doesn’t indicate which inputs or outcomes are most valuable to each employee. The best solution is for leaders to know their employees well enough to minimize the risk of inequity feelings. Open communication is also key, enabling employees to let decision makers know when they feel decisions are unfair. A second problem is that equity theory accounts for only some of our feelings of fairness or justice in the workplace. Experts now say that procedural justice is at least as important as distributive justice.
PROCEDURAL JUSTICE At the beginning of this section, we noted that fairness comes in two forms: distributive and procedural. Procedural justice refers to fairness of the procedures used to decide the distribu- tion of resources. In other words, people evaluate fairness of the distribution of resources (distributive justice), as well as the fairness of the conditions determining that distribution and its possible alteration (procedural justice).
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148 Part Two Individual Behavior and Processes
chapter summary 5-1 Define employee engagement. Employee engagement is defined as an individual’s emotional and cognitive (rational) motivation, particularly a focused, in- tense, persistent, and purposive effort toward work-related goals. It is emotional involvement in, commitment to, and satisfaction with the work, as well as a high level of absorption in the work and sense of self-efficacy about performing the work.
5-2 Explain the role of human drives and emotions in employee motivation and behavior.
Motivation consists of the forces within a person that affect his or her direction, intensity, and persistence of voluntary behavior in the workplace. Drives (also called primary needs) are neural states that energize individuals to correct deficiencies or main- tain an internal equilibrium. They are the “prime movers” of be- havior, activating emotions that put us in a state of readiness to
act. Needs—goal-directed forces that people experience—are shaped by the individual’s self-concept (including personality and values), social norms, and past experience.
5-3 Summarize Maslow’s needs hierarchy, McClelland’s learned needs theory, and four-drive theory, and dis- cuss their implications for motivating employees.
Maslow’s needs hierarchy groups needs into a hierarchy of five levels and states that the lowest needs are initially most important but higher needs become more important as the lower ones are satisfied. Although very popular, the theory lacks research sup- port because it wrongly assumes that everyone has the same hier- archy. The emerging evidence suggests that needs hierarchies vary from one person to the next, according to their personal values. McClelland’s learned needs theory argues that needs can be strengthened through learning. The three needs studied in this
There are several ways to improve procedural justice.97 A good way to start is by giving employees voice in the process: Encourage them to present their facts and perspectives on the issue. Voice also provides a value-expressive function: Employees tend to feel better after having an opportunity to speak their mind. Procedural justice is also higher when the decision maker is perceived as unbiased, relies on complete and ac- curate information, applies existing policies consistently, and has lis- tened to all sides of the dispute. If employees still perceive unfairness in the allocation of resources, their feelings tend to weaken if the company has a way of appealing the decision to a higher authority.
Finally, people usually feel less injustice when they are given a full explanation of the decision and their concerns are treated with respect. If employees believe a decision is unfair, refusing to explain how the deci- sion was made could fuel their feelings of inequity. For instance, one study found that nonwhite nurses who experienced racism tended to file grievances only after experiencing disrespectful treatment in their at- tempt to resolve the racist situation. Another study reported that em- ployees with repetitive strain injuries were more likely to file workers’ compensation claims after experiencing disrespectful behavior from management. A third recent study noted that employees have stronger feelings of injustice when the manager has a reputation of treating peo- ple unfairly most of the time.98
Consequences of Procedural Injustice Procedural justice has a strong influence on a person’s emotions and motivation. Employees tend to experience anger toward the source of the injustice, which gener-
ates various response behaviors that scholars categorize as either withdrawal or aggression.99 Notice how these response behaviors are similar to the fight-or-flight responses described earlier in the chapter regarding situations that activate our drive to defend. Research suggests that being treated unfairly threatens our self-concept and social status, particularly when others see that we have been unjustly treated. Employees retaliate to restore their self-esteem and reinstate their status and power in the relationship with the perpetrator of the injustice. Employees also engage in these counterproductive behaviors to educate the decision maker, thereby trying to minimize the likelihood of future injustices.100
Paid more than I am worth
4%
Paid a lot less than
I am worth 23%
Paid a little less than
I am worth 35%
Paid about same as I am worth
38%
Fifty-eight percent of 1,000 American employees surveyed say they are paid a little or a lot less than they believe they are worth. Only 4 percent believe they are overpaid.
Not Paid What They’re Worth96
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critical thinking questions 1. Four-drive theory is conceptually different from Maslow’s
needs hierarchy in several ways. Describe these differences. At the same time, needs are based on drives, so the four drives should parallel the seven needs that Maslow identified (five in the hierarchy and two additional needs). Map Maslow’s needs onto the four drives in four-drive theory.
2. Learned needs theory states that needs can be strengthened or weakened. How might a company strengthen the achievement needs of its management team?
3. Two friends who have just completed an organizational be- havior course at another college inform you that employees must fulfill their need for self-esteem and social esteem before they can reach their full potential through self-actualization. What theory are these friends referring to? How does their statement differ from what you learned about that theory in this chapter?
4. You just closed a deal with an organizational client, and this helps you achieve the target that was set for you by
balanced scorecard (BSC), p. 141 distributive justice, p. 144 drives, p. 125 employee engagement, p. 124 equity theory, p. 145 expectancy theory, p. 133 four-drive theory, p. 130
goal setting, p. 140 Maslow’s needs hierarchy theory, p. 127 motivation, p. 124 multisource (360-degree) feedback, p. 143 need for achievement (nAch), p. 129 need for affiliation (nAff ), p. 129 need for power (nPow), p. 129
needs, p. 126 organizational behavior modification, p. 136 procedural justice, p. 144 self-reinforcement, p. 139 social cognitive theory, p. 138 strengths-based coaching, p. 142
key terms
respect have been need for achievement, need for power, and need for affiliation. Four-drive theory states that everyone has four innate drives—the drives to acquire, bond, comprehend, and defend. These drives activate emotions that people regulate through a skill set that considers social norms, past experience, and personal values. The main recommendation from four-drive theory is to ensure that individual jobs and workplaces provide a balanced opportunity to fulfill the four drives.
5-4 Discuss the expectancy theory model, including its practical implications.
Expectancy theory states that work effort is determined by the perception that effort will result in a particular level of perfor- mance (E-to-P expectancy), the perception that a specific behav- ior or performance level will lead to specific outcomes (P-to-O expectancy), and the valences that the person feels for those out- comes. The E-to-P expectancy increases by improving the em- ployee’s ability and confidence to perform the job. The P-to-O expectancy increases by measuring performance accurately, dis- tributing higher rewards to better performers, and showing em- ployees that rewards are performance-based. Outcome valences increase by finding out what employees want and using these resources as rewards.
5-5 Outline organizational behavior modification (OB Mod) and social cognitive theory and explain their relevance to employee motivation.
Organizational behavior modification takes the behaviorist view that the environment teaches people to alter their behavior so that they maximize positive consequences and minimize adverse consequences. Antecedents are environmental stimuli that pro- voke (not necessarily cause) behavior. Consequences are events following behavior that influence its future occurrence. Conse- quences include positive reinforcement, punishment, negative reinforcement, and extinction. The schedules of reinforcement also influence behavior.
Social cognitive theory states that much learning and motiva- tion occurs by observing and modeling others, as well as by antic- ipating the consequences of our behavior. It suggests that people typically infer (rather than only directly experience) cause-and- effect relationships, anticipate the consequences of their actions, develop self-efficacy in performing behavior, exercise personal control over their behavior, and reflect on their direct experiences. The theory emphasizes self-regulation of individual behavior, in- cluding self-reinforcement, which is the tendency of people to re- ward and punish themselves as a consequence of their actions.
5-6 Describe the characteristics of effective goal setting and feedback.
Goal setting is the process of motivating employees and clarify- ing their role perceptions by establishing performance objec- tives. Goals are more effective when they are SMARTER (specific, measurable, achievable, relevant, time-framed, excit- ing, and reviewed). Effective feedback is specific, relevant, timely, credible, and sufficiently frequent. Strengths-based coaching (also known as appreciative coaching) maximizes em- ployee potential by focusing on their strengths rather than weak- nesses. Employees usually prefer nonsocial feedback sources to learn about their progress toward goal accomplishment.
5-7 Summarize equity theory and describe ways to improve procedural justice.
Organizational justice consists of distributive justice (perceived fairness in the outcomes we receive relative to our contributions and the outcomes and contributions of others) and procedural justice (fairness of the procedures used to decide the distribution of resources). Equity theory has four elements: outcome/input ratio, comparison other, equity evaluation, and consequences of inequity. The theory also explains what people are motivated to do when they feel inequitably treated. Companies need to con- sider not only equity in the distribution of resources but also fairness in the process of making resource allocation decisions.
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CASE STUDY: PREDICTING HARRY’S WORK EFFORT By Robert J. Oppenheimer, Concordia University
Purpose This exercise is designed to help you understand expectancy theory and how its elements affect a person’s level of effort toward job performance.
Instructions This exercise may be completed either individually or in small teams of four or five people. When the individuals (or teams) have completed the exercise, the results will be discussed and compared with others in the class. Read the following interview case. Then, calculate whether Harry will engage in high or “just acceptable” performance effort under the conditions described. Valence scores range from –1.0 to 11.0. All expectancies are probabilities ranging from 0 (no chance) to 1.0 (definitely will occur). The effort level scores are calculated by multiplying each valence by the appropriate P-to-O expectancy, summing these results, then multiplying the sum by the E-to-P expectancy.
Interview with Harry
Interviewer: Hi, Harry. I have been asked to talk to you about your job. Do you mind if I ask you a few questions?
Harry: No, not at all. Interviewer: Thanks, Harry. What are the things that you
would anticipate getting satisfaction from as a result of your job?
Harry: What do you mean? Interviewer: Well, what is important to you with regard to
your job here? Harry: I guess most important is job security. As a mat-
ter of fact, I can’t think of anything that is more important to me. I think getting a raise would be nice, and a promotion would be even better.
Interviewer: Anything else that you think would be nice to get, or for that matter, that you would want to avoid?
Harry: I certainly would not want my buddies to make fun of me. We’re pretty friendly, and this is really important to me.
Interviewer: Anything else? Harry: No, not really. That seems to be it. Interviewer: How satisfied do you think you would be
with each of these? Harry: What do you mean? Interviewer: Well, assume that something that you would
really like has a value of 11.0 and some- thing you would really not like, that is you would want to avoid, has a value of –1.0, and something you are indifferent about has a value of 0.
Harry: OK. Getting a raise would have a value of .5; a promotion is more important, so I’d say .7; and having my buddies make fun of me, .9.
Interviewer: But, I thought you didn’t want your buddies to make fun of you.
Harry: I don’t. Interviewer: But you gave it a value of .9. Harry: Oh, I guess it should be –.9. Interviewer: Ok, I just want to be sure I understand what
you’re saying. Harry, what do you think the chances are of these things happening?
Harry: That depends. Interviewer: On what? Harry: On whether my performance is high or just
acceptable. Interviewer: What if it is high? Harry: I figure I stand about a 50–50 chance of
getting a raise and/or a promotion, but I also think that there is a 90 percent chance that my buddies will make fun of me.
Interviewer: What about job security? Harry: I am certain my job is secure here, whether
my performance is high or just acceptable. I can’t remember the last guy who was doing his job and got fired. But if my performance is just acceptable, my chances of a raise or
the unit. Use expectancy theory to discuss how the events that will follow may increase your motivation and engagement.
5. Describe a situation in which you used organizational be- havior modification to motivate someone’s behavior. What specifically did you do? What was the result?
6. Using your knowledge of the characteristics of effective goals, establish two meaningful goals related to your perfor- mance in this class.
7. Most people think they are “worth more” than they are paid. Furthermore, most employees seem to feel that they
exhibit better leadership skills and interpersonal skills than others. Please comment on this human tendency.
8. A large organization has hired you as a consultant to identify day-to-day activities for middle managers to minimize distrib- utive and procedural injustice. The company explains that employees have complained about distributive injustice be- cause they have different opinions about what is fair (equity, equality, need) and what outcomes and inputs have the great- est value. They also experience procedural injustice due to misperceptions and differing expectations. Given these ambi- guities, what would you recommend to middle managers?
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CASE STUDY: CINCINNATI SUPER SUBS Cincinnati Super Subs is one of the larger Super Subs outlets, a chain of 300 take-away restaurants in Indiana, Ohio, and Michigan. This outlet has a restaurant manager, an assistant manager, and several part-time team leaders. The restaurant manager rarely has time to serve customers, and frontline work by managers is discouraged by the head office. The assistant manager serves customers for a couple of hours during the busy lunchtime but otherwise assists the restaurant manager with purchasing, accounts, hiring, and other operations. Most team leaders are college students and serve customers alongside other employees, particularly from late afternoon to night closing. Most employees are also students who work part-time; a few are in high school. All regular staff earn minimum pay rates. Cincinnati Super Subs has experienced below average prof- itability over the past 18 months, which has reduced the monthly bonus paid to the restaurant manager and assistant manager. This bonus is calculated by percentage of “wastage” (unsold, damaged, or unaccounted for food and drinks) rela- tive to sales; the lower the percentage of wastage, the higher the bonus. Wastage occurs when employees drop or spill food, cut up more toppings than are sold, burn heated subs, prepare an order incorrectly, and eat or give away food without permis- sion. When employees make mistakes, the expense is supposed to come out of their paycheck. Unauthorized eating and giving away food are grounds for immediate dismissal. However, team leaders are reluctant to report any accidental or deliberate wastage, even when confronted by the restaurant manager about the store’s high wastage over the previous week and month. One team leader who reported several accidental wast- age incidents eventually quit after being snubbed by coworkers who attended the same college classes. Cincinnati Super Subs gives employees a food allowance if they work continuously for at least four and one-half hours. Staff complain that the allowance is meager and that they are often ineligible for the food allowance because many shifts are only three or four hours. Employees who work these shorter shifts sometimes help themselves to food and drinks when the managers aren’t around, claiming that their hard work justifies
the free meal. Some also claim the food is a low company ex- pense and makes up for their small paycheck, relative to what many of their friends earn elsewhere. Several (but not most) em- ployees give some of their friends generous helpings as well as occasional free soft drinks and chips. Employees say handing out free food to friends makes them more popular with their peers. Five months ago, the Cincinnati restaurant’s wastage (mainly deliberate wastage) had risen to the point where the two manag- ers no longer received a bonus. The restaurant manager reacted by giving the food allowance only to those who work for six or more hours in a single shift. This action excluded even more staff from receiving the food allowance, but it did not discour- age employees from eating or giving away food. However, almost 20 percent of the experienced college staff left for other jobs over the following two months. Many of those who stayed discouraged friends from considering jobs at Super Subs. Morale declined, which dampened the fun atmosphere that had been experienced to some extent in past times. Relations between employees and managers soured further. With relatively low unemployment, the restaurant manager found it difficult to hire replacements, particularly people with previous work experience of any kind. Temporary staff short- ages required the two managers to spend more time working in food preparation and training the new staff. Their increased presence in the restaurant significantly reduced deliberate wast- age, but accidental wastage increased somewhat as the greater number of inexperienced staff made more mistakes. After three months, Cincinnati Super Subs’ manager and assistant manager were confident that the situation had improved, so they spent less time training staff and serving customers. Indeed, they received a moderate bonus after the third month in the store. However, wastage increased again soon after the managers withdrew from daily operations. The experienced employees started eating more food, and the new staff soon joined this practice. Exasperated, the restaurant manager took bolder steps. He completely removed the food allowance and threatened to fire any employee caught con- suming or giving away food.
promotion are about 10 percent. However, then the guys will not make fun of me. That I am certain about.
Interviewer: What is the likelihood of your performance level being high?
Harry: That depends. If I work very hard and put out a high degree of effort, I’d say that my chance of my performance being high is about 90 percent. But if I put out a low level of effort—you know, if I just take it easy— then I figure that the chances of my doing an acceptable job is about 80 percent.
Interviewer: Well, which would you do: put out a low level or a high level of effort?
Harry: With all the questions you asked me, you should be able to tell me.
Interviewer: You may be right! Harry: Yeah? That’s nice. Hey, if you don’t have any
other questions, I’d like to join the guys for coffee.
Interviewer: OK, thanks for your time. Harry: You’re welcome.
Discussion Question
1. Use the expectancy theory model to predict Harry’s moti- vation to achieve high or “just acceptable” performance in his job. Identify and discuss the factors that influence this motivation.
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CLASS EXERCISE: NEEDS PRIORITY EXERCISE
PURPOSE This class exercise is designed to help you un- derstand employee needs in the workplace.
INSTRUCTIONS (SMALL CLASS)
Step 1: The table below lists in alphabetical order 16 char- acteristics of the job or work environment. Working alone, use the far-left column to rank-order the importance of these characteristics to you personally. Write in “1” beside the most important characteristic, “2” for the second most important, and so on, through to “16” for the least important character- istic on this list.
Step 2: Identify any three (3) of these work attributes that you believe have the largest score differences between Gener- ation Y (Millennial) male and female college students in your country (i.e., those born in 1980 or after). Indicate which gender you think identifies that attribute as more important.
Step 3: Students are assigned to teams, where they compare each other’s rank-order results as well as perceived gender dif- ferences in needs. Note reasons for the largest variations in rankings and be prepared to discuss these reasons with the
entire class. Students should pay close attention to different needs, self-concepts, and various forms of diversity (ethnicity, profession, age, etc.) within your class to identify possible ex- planations for any variation of results across students.
Step 4: The instructor will provide results of a recent large- scale survey of Generation-Y/Millennial postsecondary stu- dents (i.e., born in 1980 or after). When these results are presented, identify the reasons for any noticeable differences in the class. Relate the differences to your understanding of the emerging view of employee needs and drives in work set- tings. For gender differences, discuss reasons why men and women might differ on these work-related attributes.
INSTRUCTIONS (LARGE CLASS)
Step 1 and Step 2: Same as the small class instructions.
Step 3: The instructor will ask students, by a show of hands (or use of classroom technology), to identify their top-ranked attributes as well as the attributes believed to have the greatest gender differences among Gen-Yers.
Step 4: Same as above.
Wastage dropped somewhat over the next month but is now creeping upward again.
Discussion Questions
1. What symptom(s) in this case suggest that something has gone wrong?
2. What are the main causes of these symptoms? 3. What actions should Cincinnati Super Subs’ managers
take to correct these problems? © 2011 Steven L. McShane. Inspired by an early case written by J. E. Dittrich and R. A. Zawacki.
152
ATTRIBUTES OF WORK (LISTED ALPHABETICALLY) YOUR RANKING (1 5 MOST IMPORTANT)
Personal Ranking of Work-Related Attributes
Challenging work
Commitment to social responsibility
Good health and benefits plan
Good initial salary level
Good people to report to
Good people to work with
Good training opportunities/developing new skills
Good variety of work
Job security
Opportunities for advancement in position
Opportunities to have a personal impact
Opportunities to have a social impact
Opportunity to travel
Organization is a leader in its field
Strong commitment to employee diversity
Work–life balance
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TEAM EXERCISE: BONUS DECISION EXERCISE
By Steven L. McShane, The University of Western Australia
PURPOSE This exercise is designed to help you under- stand the elements of equity theory and how people differ in their equity perceptions.
INSTRUCTIONS Four managers in a large national in- surance company are described below. The national sales di- rector of the company has given your consulting team (first individually, then together) the task of allocating $100,000 in bonus money to these four managers. It is entirely up to your team to decide how to divide the money among these people. The only requirements are that all of the money must be distributed and that no two branch managers can receive the same amount. The names and information are presented in no particular order. You should assume that economic conditions, client demographics, and other external factors are very similar for these managers.
Step 1: Working alone, read information about the four managers. Then, fill in the amount you would allocate to each manager in the “Individual Decision” column.
Step 2: Still working alone, fill in the “Equity Inputs Form.” First, in the “Input Factor” column, list in order of impor- tance the factors you considered when allocating these bonus amounts (e.g., seniority, performance, age). The most im- portant factor should be listed first and the least important last. Next, in the “Input Weight” column estimate the per- centage weight that you assigned to this factor. The total of this column must add up to 100 percent.
Step 3: Form teams (typically 4 to 6 people). Each team will compare their results and note any differences. Then, for each job, team members will reach a consensus on the bonus amount that each manager should receive. These amounts will be written in the “Team Decision” column.
Step 4: The instructor will call the class together to compare team results and note differences in inputs and input weights
used by individual students. The class will then discuss these results using equity theory.
INSTRUCTIONS (LARGE CLASS)
Step 1 and Step 2: Same as in the preceding “Instructions” section.
Step 3: The instructor will ask students, by a show of hands (or use of classroom technology), to identify which manager would receive the highest bonus, then how much should be allocated to that manager. Repeat with the manager receiving the lowest bonus. (Some classroom technology allows students to directly indicate their bonus amount for that manager.) The class will then discuss these results using equity theory.
BONUS DECISION-MAKING
MANAGER PROFILES
Bob B. Bob has been in the insurance business for over 27 years and has spent the past 21 years with this company. A few years ago, Bob’s branch typically made the largest contri- bution to regional profits. More recently, however, it has brought in few new accounts and is now well below average in terms of its contribution to the company. Turnover in the branch has been high and Bob doesn’t have the same enthusi- asm for the job as he once did. Bob is 56 years old and is married with five children. Three children are still living at home. Bob has a high school diploma as well as a certificate from a special course in insurance management. Edward E. In the two years that Edward has been a branch manager, his unit has brought in several major accounts and now stands as one of the top units in the country. Edward is well respected by his employees. At 29, he is the youngest manager in the region and one of the youngest in the coun- try. The regional director initially doubted the wisdom of giv- ing Edward the position of branch manager because of his relatively young age and lack of experience in the insurance
CLASS EXERCISE: THE LEARNING EXERCISE
PURPOSE This exercise is designed to help you under- stand how learning and motivation are influenced by the contingencies of reinforcement in organizational behavior modification.
MATERIALS Any objects normally available in a class- room will be acceptable for this activity.
INSTRUCTIONS (FOR SMALL OR LARGE
CLASSES) The instructor will ask for three volunteers, who are then briefed outside the classroom. The instructor
will spend a few minutes describing the exercise to students in the class about their duties. Then, one of the three volun- teers will enter the room to participate in the exercise. When completed, the second volunteer enters the room and partic- ipates in the exercise. When completed, the third volunteer enters the class and participates in the exercise.
For students to gain the full benefit of this exercise, no other information will be provided here. However, the in- structor will have more details at the beginning of this fun activity.
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SELF-ASSESSMENT
NEED STRENGTH QUESTIONNAIRE Although everyone has the same innate drives, secondary or learned needs vary from one person to the next in the same situation. This self-assessment provides an estimate of your need strength on selected secondary needs. Read each of the statements below and check the response that you believe best reflects your position regarding each statement. Then, use
the scoring key in Appendix A at the end of the book to cal- culate your results. To receive a meaningful estimate of your need strength, you need to answer each item honestly and with reflection on your personal experiences. Class discussion will focus on the meaning of the needs measured in this self-assessment as well as their relevance in the workplace.
industry. Edward received an undergraduate business degree from a regional college and worked for five years as a sales representative before joining this company. Edward is single and has no children. Lee L. Lee has been with this organization for seven years. The first two years were spent as a sales representative in the office that she now manages. According to the regional direc- tor, Lee rates about average as a branch manager. She earned an undergraduate degree in geography from a major univer- sity and worked as a sales representative for four years with another insurance company before joining this organization. Lee is 40 years old, divorced, and has no children. She is a very ambitious person but sometimes has problems working with her staff and other branch managers. Sandy S. Sandy is 47 years old and has been a branch man- ager with this company for 17 years. Seven years ago, her branch made the lowest contribution to the region’s profits, but this has steadily improved and is now slightly above aver- age. Sandy seems to have a mediocre attitude toward her job but is well liked by her staff and other branch managers. Her experience in the insurance industry has been entirely with this organization. She previously worked in non-sales posi- tions, and it is not clear how she became a branch manager without previous sales experience. Sandy is married and has three school-aged children. Several years ago, Sandy earned a diploma in business from a nearby community college by taking evening courses.
Bonus Allocation Form
Bob B. $ ________ $ ________
Edward E. $ ________ $ ________
Lee L. $ ________ $ ________
Sandy S. $ ________ $ ________
TOTALS: $100,000 $100,000
NAME INDIVIDUAL DECISION TEAM DECISION
Equity Inputs Form
______________________________ ______________%
______________________________ ______________%
______________________________ ______________%
______________________________ ______________%
______________________________ ______________%
TOTAL: 100%
*List factors in order of importance, with most important factor listed first. **The weight of each factor is a percentage ranging from 1 to 100. All factor weights together must add up to 100 percent. Copyright © 2000, 1983 Steven L. McShane.
INPUT FACTOR* INPUT WEIGHT**
Personal Needs Questionnaire
HOW ACCURATELY DO EACH OF THE VERY ACCURATE MODERATELY NEITHER ACCURATE MODERATELY VERY INACCURATE FOLLOWING STATEMENTS DESCRIBE YOU? DESCRIPTION OF ME ACCURATE NOR INACCURATE INACCURATE DESCRIPTION OF ME
(continued)
1. I would rather be myself than be well thought of.
2. I’m the type of person who never gives up.
3. When the opportunity occurs, I want to be in charge.
4. I try not to say things that others don’t like to hear.
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Sources: 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; H. J. Martin, “A Revised Measure of Approval Motivation and Its Relationship to Social Desirability,” Journal of Personality Assessment 48 (1984), pp. 508–519.
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.
HOW ACCURATELY DO EACH OF THE VERY ACCURATE MODERATELY NEITHER ACCURATE MODERATELY VERY INACCURATE FOLLOWING STATEMENTS DESCRIBE YOU? DESCRIPTION OF ME ACCURATE NOR INACCURATE INACCURATE DESCRIPTION OF ME
5. I find it difficult to talk about my ideas if they are contrary to
group opinion.
6. I tend to take control of things.
7. I am not highly motivated to succeed.
8. I usually disagree with others only if I know my friends will
back me up.
9. I try to be the very best at what I do.
10. I seldom make excuses or apologize for my behavior.
11. If anyone criticizes me, I can take it.
12. I try to outdo others.
13. I seldom change my opinion when people disagree with me.
14. I try to achieve more than what others have accomplished.
15. To get along and be liked, I tend to be what people expect me to be.
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6 Applied Performance Practices
le a
rn in
g o
b je
ct iv
e s After reading this chapter, you should be able to:
6-1 Discuss the meaning of money and identify several individual-, team-, and organizational- level performance-based rewards.
6-2 Describe five ways to improve reward effectiveness.
6-3 List the advantages and disadvantages of job specialization.
6-4 Diagram the job characteristics model and describe three ways to improve employee motivation through job design.
6-5 Define empowerment and identify strategies that support empowerment.
6-6 Describe the five elements of self-leadership and identify specific personal and work environment influences on self-leadership.
156
c ha pter
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ive years ago, Hilcorp Energy Company launched a challenge to its employees, called Double Drive. Everyone at the Houston- based oil and gas company would receive a new car or an equivalent cash bonus
of $50,000 if they met three targets in five years: doubling the company’s value, its
oil field production rate, and its net oil and gas reserves. Hilcorp’s 700 staff at the
time (it now employs 1,000) met those targets and enjoyed their generous reward.
The Double Drive reward was so successful that Hilcorp introduced a new
challenge, called Dream 2015. If the same three metrics doubles again in five years,
employees will each receive $100,000. (The amount is pro-rated for those hired
during this five-year period.)
In addition to these long-term incentives, Hilcorp rewards employees with annual
organization-wide bonuses based on the company’s performance. These bonuses
have averaged 35 percent on top of the employee’s base pay but can be as high as
60 percent. There are also short-term rewards, such as the $100 bill (or more)
employees receive whenever the company reaches a predetermined output of
barrels of oil produced.
“We always want to set it up so when Hilcorp wins, everyone wins,” explains
Hilcorp president Greg Lalicker. “The fact that we’re willing to share that with the
employees just incents them to work that much harder and achieve these goals.
Without their efforts, we’re not going to get there.”
Hilcorp’s financial rewards have become legendary, but employees say their
motivation also comes from the autonomy, responsibility, and importance of their
jobs to the company and society. “Being part of a team that’s trying to maximize
our country’s energy reserves—well, I’m proud to be a part of that,” says a senior
geologist. A Hilcorp engineer adds: “Constant communication, input from the field
and the power to make quick decisions—these are Hilcorp, all the way.” Head office
support staff also see the significance of their work and its contribution. “I know
how important my job is,” says one receptionist. “Everyone has a role to make
Hilcorp grow in one direction.”1
iiv t b
oo F
157
Hilcorp Energy Co. has a highly motivated workforce, driven by generous company-wide performance-based financial bonuses and intrinsically motivating jobs.
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158 Part Two Individual Behavior and Processes
Hilcorp stands out from most organizations in its employment practices, but it also stands out for its success. The company was founded in 1989 and has become one of the largest privately held oil and gas companies in the United States. It is also one of the best employers in America. Hilcorp’s reliance on performance-based rewards, job enrichment, and an em- powering work environment illustrates the importance of three topics discussed in this chap- ter. The fourth topic, self-leadership, is also apparent among Hilcorp’s employees.
The chapter begins by examining the meaning of money. This is followed by an overview of financial reward practices, including the different types of rewards and how to implement rewards effectively. Next, we look at the dynamics of job design, including specific job de- sign strategies for motivating employees. We then consider the elements of empowerment, as well as conditions that support empowerment. The final part of the chapter explains how employees manage their own performance through self-leadership.
What is your attitude toward money? Visit connect.mcgrawhill.com to assess how much you budget, respect, and worry about money.
The Meaning of Money in the Workplace Rewarding people with money is one of the oldest and certainly the most widespread ap- plied performance practices. At the most basic level, money and other financial rewards represent a form of exchange; employees provide their labor, skill, and knowledge in return for money and benefits from the organization. From this perspective, money and related rewards align employee goals with organizational goals. This concept of economic exchange can be found across cultures. The word for pay in Malaysian and Slovak means “to replace a loss”; in Hebrew and Swedish, it means “making equal.”2
However, money is much more than an object of compensation for an employee’s contri- bution to organizational objectives. Money relates to our needs, our emotions, and our self-concept. It is a symbol of achievement and status, a motivator, a source of enhanced or reduced anxiety, and an influence on our propensity to make ethical or risky decisions.3 According to one source, “Money is probably the most emotionally meaningful object in contemporary life: only food and sex are its close competitors as common carriers of such strong and diverse feelings, significance, and strivings.”4
The meaning of money varies considerably from one person to the next.5 Studies report that money is viewed as a symbol of status and prestige, as a source of security, as a source of evil, or as a source of anxiety or feelings of inadequacy. It is considered a taboo topic in many social settings. Recent studies depict money as both a “tool” (i.e., money is valued because it is an instrument for acquiring other things of value) and a “drug” (i.e., money is an object of addictive value in itself ).
One large-scale study revealed that money generates a variety of emotions, most of which are negative, such as anxiety, depression, anger, and helplessness.6 A widely studied model of money attitudes suggests that people have a strong “money ethic” when they believe that money is not evil; that it is a symbol of achievement, respect, and power; and that it should be budgeted carefully. These attitudes toward money influence an individual’s ethical con- duct, organizational citizenship, and many other behaviors and attitudes.7
The meaning of money seems to differ between men and women.8 One recent study re- ported that men tend to view money as a symbol of power and status, whereas women are more likely to view its value in terms of things for which it can be exchanged. An earlier study revealed that in almost all 43 countries studied, men attach more importance or value
LO 6-1
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Chapter Six Applied Performance Practices 159
to money than do women. The meaning of money also seems to vary across cultures.9 Peo- ple in countries with high power distance (such as China and Japan) tend to have a high respect and priority for money, whereas people in countries with a strong egalitarian culture (such as Denmark, Austria, and Israel) are discouraged from openly talking about money or displaying their personal wealth. One study suggests that Swiss culture values saving money, whereas Italian culture places more value on spending it.
The motivational effect of money is much greater than was previously believed, and this effect is due more to its symbolic value than to what it can buy.10 Philosopher John Stuart Mill made this observation 150 years ago when he wrote: “The love of money is not only one of the strongest moving forces of human life, but money is, in many cases, desired in and for itself.”11 People who earn higher pay tend to have higher job performance because the higher paycheck enhances their self-concept evaluation. Others have noted that the sym- bolic value of money depends on how it is distributed in the organization and how many people receive that financial reward.
Overall, current organizational behavior knowledge indicates that money is much more than a means of exchange between employer and employee. It fulfills a variety of needs, influences emotions, and shapes or represents a person’s self-concept. These findings are important to remember when the employer is distributing financial rewards in the work- place. Over the next few pages, we look at various reward practices and how to improve the implementation of performance-based rewards.
Financial Reward Practices Financial rewards come in many forms, which can be organized into the four specific objectives identified in Exhibit 6.1: membership and seniority, job status, competencies, and performance.
EXHIBIT 6.1 Reward Objectives, Advantages, and Disadvantages
Membership/seniority • Fixed pay • Most employee benefits • Paid time off
• May attract applicants • Minimizes stress of insecurity • Reduces turnover
REWARD OBJECTIVE SAMPLE REWARDS ADVANTAGES DISADVANTAGES
• Doesn’t directly motivate performance • May discourage poor performers from
leaving • “Golden handcuffs” may undermine
performance
Job status
Competencies
Task performance
• Promotion-based pay increase
• Status-based benefits
• Pay increase based on competency
• Skill-based pay
• Commissions • Merit pay • Gainsharing • Profit sharing • Stock options
• Tries to maintain internal equity • Minimizes pay discrimination • Motivates employees to
compete for promotions
• Improves workforce flexibility • Tends to improve quality • Is consistent with employability
• Motivates task performance • Attracts performance-
oriented applicants • Organizational rewards
create an ownership culture • Pay variability may avoid
layoffs during downturns
• Encourages hierarchy, which may in- crease costs and reduce responsiveness
• Reinforces status differences • Motivates job competition and exag-
gerated job worth
• Relies on subjective measurement of competencies
• Skill-based pay plans are expensive
• May weaken job content motivation • May distance reward giver from
receiver • May discourage creativity • Tends to address symptoms, not
underlying causes of behavior
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160 Part Two Individual Behavior and Processes
OhioHealth literally gives its long-service employees the red carpet treatment. After 20 years of employment, and every 5 years after that, employees at Ohio’s largest health care provider get a day off. After enjoying a free breakfast, the long-service employees are chauffeured to a shopping mall to spend a special bonus calculated at $15 for every year of employment. Next, they arrive at a conference center for the celebration luncheon, where executives and coworkers cheer these long-service staff as they walk along a red carpet. Not surprisingly, OhioHealth has much lower employee turnover than the industry average. “This reward and recognition (long- service shopping spree) stirs the emotions and passions of people,” says OhioHealth CEO David Blom.12
MEMBERSHIP- AND SENIORITY-BASED REWARDS Membership-based and seniority-based rewards (sometimes called “pay for pulse”) represent the largest part of most paychecks. Some employee benefits, such as free or discounted meals in the company cafeteria, remain the same for everyone, whereas others increase with senior- ity. Some companies, such as the Paul Scherrer Institut near Zurich, Switzerland, have a loyalty bonus for long-service employees. Those with 10 or more years of service at the natural and engineering sciences research center receive an annual loyalty bonus equal to a half month’s salary; those with 20 or more years of service receive a bonus equivalent to a full month’s salary. Toyota Motor Company and many other Japanese firms have wage scales and increases determined by the employee’s age.13
These membership- and seniority-based rewards potentially attract job applicants (partic- ularly those who desire predictable income) and reduce turnover. However, they do not di- rectly motivate job performance; on the contrary, they discourage poor performers from seeking work better suited to their abilities. Instead, the good performers are lured to better paying jobs. Some of these rewards are also “golden handcuffs”—they discourage employees from quitting because of deferred bonuses or generous benefits that are not available else- where. However, golden handcuffs potentially weaken job performance, because they gener- ate continuance rather than affective commitment (see Chapter 4).
JOB STATUS–BASED REWARDS Almost every organization rewards employees to some extent on the basis of the status or worth of the jobs they occupy. In some parts of the world, companies measure job worth through job evaluation. Most job evaluation methods give higher value to jobs that require more skill and effort, have more responsibility, and have more difficult working condi- tions.14 The higher the worth assigned to a job, the higher the minimum and maximum pay for people in that job. Along with receiving higher pay, employees with more valued jobs sometimes receive larger offices, company-paid vehicles, and other perks.
Job status–based rewards try to improve feelings of fairness, such that people in higher- valued jobs should get higher pay. These rewards also motivate employees to compete for promotions. However, at a time when companies are trying to be more cost efficient and responsive to the external environment, job status–based rewards potentially do the oppo- site by encouraging a bureaucratic hierarchy. These rewards also reinforce a status mental- ity, whereas Generation-X and Generation-Y employees expect a more egalitarian workplace. Furthermore, status-based pay potentially motivates employees to compete for
job evaluation
Systematically rating the worth of jobs within an organization by measuring the required skill, effort, responsibility, and working conditions.
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Chapter Six Applied Performance Practices 161
higher status jobs and to raise the value of their own jobs by exaggerating job duties and hoarding resources.15
COMPETENCY-BASED REWARDS Over the past two decades, many companies have shifted reward priorities from job status to skills, knowledge, and other competencies that lead to superior performance. The most common practices identify a list of competencies relevant across all job groups, as well as competencies specific to each broad job group. Employees progress through the pay range within that job group based on how well they demonstrate each of those competencies.16
Skill-based pay plans are a more specific variation of competency-based rewards in which people receive higher pay based on their mastery of measurable skills.17 For example, techni- cians at the City of Flagstaff, Arizona, are paid for the number of skill blocks they have mastered. New hires must complete the first skill block during probation and can eventually progress through several more skill blocks to earn almost twice the base (single skill block) salary. Technicians demonstrate proficiency in a skill block through in-house or formal certification assessments.
Competency-based rewards motivate employees to learn new skills.18 This tends to sup- port a more flexible workforce, increase employee creativity, and allow employees to be more adaptive to embracing new practices in a dynamic environment. Product or service quality also tends to improve because employees with multiple skills are more likely to understand the work process and know how to improve it. However, competency-based pay plans have not always worked out as well as promised by their advocates. They are of- ten over-designed, making it difficult to communicate these plans to employees. Compe- tency definitions tend to be abstract, which raises questions about fairness when employers are relying on these definitions to award pay increases. Skill-based pay systems measure specific skills, so they are usually more objective. However, they are expensive because em- ployees spend more time learning new tasks.19
PERFORMANCE-BASED REWARDS Performance-based rewards have existed since Babylonian days 4,000 years ago, but their popularity has increased dramatically over the past few decades. Here is an overview of some of the most popular individual, team, and organizational performance-based rewards.
Individual Rewards Many employees receive individual bonuses or other rewards for accomplishing a specific task or exceeding annual performance goals. Housekeeping staff in many hotels are paid a piece rate—a specific amount earned for each room cleaned. Other hotels pay an hourly rate plus a per-room bonus. Real estate agents and other salespeople typically earn commissions, in which their pay depends on the sales volume they generate. PortionPac Chemical avoids sales commissions because they motivate more sales, whereas the Chicago-based cleaning fluids manufacturer wants customers to use less product more efficiently and safely. “High-commission salespeople are going to sell the customer as much as they can. We want customers to use the right amount,” explains PortionPak chairman and co-founder Marvin Klein. Instead, PortionPac sales staff earn bonuses for contracts that al- low the company to distribute the right amount of product to customers.21
Team Rewards Organizations have shifted their focus from individuals to teams over the past two decades, and accompanying this transition has been the introduction of more team-based rewards. Nucor Inc. relies heavily on team-based rewards. The steelmak- er’s employees earn bonuses that can exceed half their total pay, based on how much steel is produced by the team. This team-based bonus system also includes penalties. If employ- ees catch a bad batch of steel before it leaves the mini-mill, they lose their bonus for that shipment. But if a bad batch makes its way to the customer, the team loses three times its usual bonus.22
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162 Part Two Individual Behavior and Processes
Another form of team-based performance reward, called a gainsharing plan, calculates bonuses from the work unit’s cost savings and productivity improvement. Whole Foods Market uses gainsharing to motivate cost savings in its grocery stores. The food retailer as- signs a monthly payroll budget to teams operating various departments within a store. If payroll money is unspent at the end of the month, the surplus is divided among members of that Whole Foods Market team.23 Several hospitals have cautiously introduced a form of gainsharing, whereby physicians and medical staff in a medical unit (cardiology, orthope- dics, etc.) are collectively rewarded for cost reductions in surgery and patient care. These cost reductions mainly occur through negotiating better prices of materials.24 Gainsharing plans tend to improve team dynamics, knowledge sharing, and pay satisfaction. They also create a reasonably strong link between effort and performance, because much of the cost reduction and labor efficiency is within the team’s control. 25
Organizational Rewards Along with individual and team-based rewards, many firms rely on organizational-level rewards to motivate employees. Hilcorp, the Texas oil and gas company described at the beginning of this chapter, rewards all staff members for achieving
challenging annual and 5-year goals and other indicators of organizational performance.
Employee stock ownership plans (ESOPs) are organi- zational rewards that encourage employees to buy com- pany stock, usually at a discounted price. The financial incentive occurs in the form of dividends and market ap- preciation of the stock. Due to tax concessions in the United States and a few other countries, most ESOPs are
0 10 20 30 40 50 60 70 80
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France
USA
UK
Sweden
Denmark
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Global Variations in Performance-Based Pay20
Percentage of employees surveyed in selected countries who say their pay is “variable, such that a portion is dependent upon your individual performance/productivity targets.” Data were collected in 2013 from more than 120,000 people in 31 countries for Kelly Services. The global average includes respondents from all 31 countries, not just those shown in this chart.
gainsharing plan
A team-based reward that calculates bonuses from the work unit’s cost savings and productivity improvement.
employee stock ownership
plans (ESOPs)
A reward system that encourages employees to buy company stock.
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Chapter Six Applied Performance Practices 163
designed as retirement plans. Today, more than 20 percent of Americans working in the private sector hold stock in their companies.26 Publix Super Markets has one of the largest and oldest ESOPs in America. The Lakeland, Florida, grocery chain distributes a portion of company profits to employees in the form of company stock. Employees can also purchase additional stock from the privately held company.27
While ESOPs involve purchasing company shares, stock options give employees the right to purchase company stock at a predetermined price up to a fixed expiration date. For exam- ple, an employer might offer employees the right to purchase 100 shares at $50 at any time between two and six years from now. If the stock price is, say, $60 two years later, employees could earn $10 from these options, or they could wait up to six years for the share price to rise further. If the stock price never rises above $50 during that time, they are “out of the money,” and employees just let the options expire. The intention of stock options is to motivate em- ployees to make the company more profitable, thereby raising the company’s stock price and enabling them to reap the value above the exercise price of the stock options.
Another type of organizational-level reward is the profit-sharing plan, in which employ- ees receive a percentage of the previous year’s company profits. An interesting application of this reward occurs at Svenska Handelsbanken AB. In years when the Swedish bank is more profitable than the average of competing banks, it transfers one-third of the difference in profits to an employee fund. Every employee receives one share in the fund for each year of service, which can be cashed out at 60 years of age (even if they continue working for the bank beyond that age).28
Evaluating Organizational-Level Rewards How effective are organizational- level rewards? Research indicates that ESOPs and stock options tend to create an ownership culture in which employees feel aligned with the organization’s success.29 Profit sharing tends to create less ownership culture, but it has the advantage of automatically adjusting employee compensation with the firm’s prosperity, thereby reducing the need for layoffs or negotiated pay reductions during recessions.
The main problem with ESOPs, stock options, and profit sharing is that employees often perceive a weak connection between individual effort and corporate profits or the value of company shares. Even in small firms, the company’s stock price or profitability is influenced by economic conditions, competition, and other factors beyond the employee’s immediate control. This low individual performance-to-outcome expectancy suppresses the incentive’s motivational effect. Another concern is that some companies (notably those in the United States) use ESOPs as a replacement for employee pension plans. This is a risky strategy because these pension plans lack diversification. If the company goes bankrupt, employees lose both their jobs and a large portion of their retirement nest egg.30
Improving Reward Effectiveness Performance-based rewards have come under attack over the years for discouraging creativ- ity, distancing management from employees, distracting employees from the meaningfulness of the work itself, and being quick fixes that ignore the true causes of poor performance. Recent studies have even found that very large rewards (relative to the usual income) can
result in lower, rather than higher, performance.31 While these issues have kernels of truth under specific circum- stances, they do not necessarily mean that we should abandon performance-based pay. On the contrary, top- performing companies are more likely to have perfor- mance-based (or competency-based) rewards, which is consistent with evidence that these rewards are one of the high-performance work practices (see Chapter 1).32
stock options
A reward system that gives employees the right to purchase company stock at a future date at a predetermined price.
profit-sharing plan
A reward system that pays bonuses to employees on the basis of the previous year’s level of corporate profits.
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164 Part Two Individual Behavior and Processes
Reward systems do motivate most employees, but only under the right conditions. Here are some of the more important strategies for improving reward effectiveness.
LINK REWARDS TO PERFORMANCE Organizational behavior modification theory and expectancy theory (Chapter 5) both rec- ommend that employees with better performance should be rewarded more than those with poorer performance. Unfortunately, this simple principle seems to be unusually difficult to apply. Few employees see a relationship between job performance and the amount of pay they and coworkers receive. One recent global survey reported that only 42 percent of em- ployees globally say they think there is a clear link between their job performance and pay. Only 25 percent of Swedish employees and 36 percent of American employees see a pay– performance link.33
How can companies improve the pay–performance linkage? Inconsistencies and bias can be minimized through gainsharing, ESOPs, and other plans that use objective performance
debating point IS IT TIME TO DITCH THE PERFORMANCE REVIEW?
More than 90 percent of Fortune 500 companies use performance reviews to link rewards to the performance of some or most em- ployees. Advocates argue that these evaluations provide critical documentation, communication, and decisions necessary to re- ward contributors and remove those who fail to reach the mini- mum standard. Indeed, it can be difficult to fire poor performers in some jurisdictions unless the company has systematically docu- mented the employee’s shortfalls. Evaluations provide clear feed- back about job performance, so employees know where they stand and are motivated to improve. Performance reviews have their faults, but supporters say these problems can be overcome by using objective information (such as goal setting and 360- degree feedback) rather than subjective ratings, being supportive and constructive throughout the review, and providing informal performance feedback throughout the year. Several experts—and most employees—disagree.35 In spite of mountains of advice over the years on how to improve performance reviews, this activity seems to inflict more damage than deliver benefits. Apple Inc. trashed its formal performance evaluation pro- cess a decade ago. Zappos and dozens of other companies have since followed Apple’s lead. Most companies that ditched their per- formance reviews never brought them back again. According to various polls and studies, performance reviews are stressful, morale sapping, and dysfunctional events that typi- cally descend into political arenas and paperwork bureaucracies. Even when managers actively coach employees throughout the year, the annual appraisal meeting places them in the awkward and incompatible role as an all-powerful and all-knowing evalua- tor. Another issue is that rating employees, even on several fac-
tors, grossly distorts the complexity of performance in most jobs. A single score on customer service, for instance, would hide vari- ations in knowledge, empathy, efficiency, and other elements of service. “Who am I to tell somebody they’re a three out of five?” asks Don Quist, CEO of the Hood Group. Quist is so opposed to performance reviews that employees at the engineering firm were issued badges with a big “X” through the phrase “Employee Evaluation.”36
Many perceptual biases—halo, recency, primacy, stereotyp- ing, fundamental attribution error—are common in performance reviews and difficult to remove through training. Seemingly objec- tive practices such as goal setting and 360-degree feedback are fraught with bias and subjectivity. Various studies have also found that managers across the organization use different criteria to rate employee performance. One study discovered that manage- ment’s evaluations of 5,000 customer service employees were unrelated to ratings that customers gave those employees. “The managers might as well have been rating the employees’ shoe sizes, for all the customers cared,” quipped one investigator.37
Is there an alternative to the performance evaluation? One re- peated suggestion is to conduct “performance previews” or “feedforward” events that focus on future goals and advice. In- stead of a postmortem dissection of the employee’s failings, man- agers use past performance as a foundation for development.38 Also, substantial rewards should never be based on performance reviews or similar forms of evaluation. Instead, they should be linked to measurable team- and organizational-level outcomes and, judiciously, to individual indicators (sales, project comple- tion, etc.), where appropriate.
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Chapter Six Applied Performance Practices 165
measures. Where subjective measures of performance are necessary, companies should rely on multiple sources of information. Companies also need to apply rewards soon after the performance occurs, and in a large-enough dose (such as a bonus rather than a pay increase), so that employees experience positive emotions when they receive the reward.34
ENSURE THAT REWARDS ARE RELEVANT Companies need to align rewards with performance within the employee’s control. The more employees see a “line of sight” between their daily actions and the reward, the more they are motivated to improve performance. BHP Billiton applies this principle by reward- ing bonuses to top executives based on the company’s overall performance, whereas frontline mining staff earn bonuses based on the production output, safety performance, and other local indicators. Reward systems also need to correct for situational factors. Salespeople in one region may have higher sales because the economy is stronger there than elsewhere, so sales bonuses need to be adjusted for such economic factors.
USE TEAM REWARDS FOR INTERDEPENDENT JOBS Team rewards are better than individual rewards when employees work in highly interde- pendent jobs, because it is difficult to measure individual performance in these situations. Nucor Corp. relies on team-based bonuses for this reason; producing steel is a team effort, so employees earn bonuses based on team performance. Team rewards also encourage coop- eration, which is more important when work is highly interdependent. A third benefit of team rewards is that they tend to support employee preferences for team-based work. One concern, however, is that employees (particularly the most productive employees) in the United States and many other low-collectivism cultures prefer rewards based on their indi- vidual performance rather than team performance.39
ENSURE THAT REWARDS ARE VALUED It seems obvious that rewards work best when they are valued. Yet companies sometimes make false assumptions about what employees want, with unfortunate consequences. For instance, one manager honored an employee’s 25th year of service by buying her a box of doughnuts to be shared with other staff. The employee was insulted. She privately com- plained later to coworkers that she would rather receive nothing than “a piddling box of doughnuts.”40 The solution, of course, is to ask employees what they value. Campbell Soup did this several years ago at one of its distribution centers. Executives thought the employees would ask for more money in a special team reward program. Instead, distribution staff said the most valued reward was a leather jacket with the Campbell Soup logo on the back. The leather jackets cost much less yet were worth much more than the financial bonus the com- pany had intended to distribute.41
WATCH OUT FOR UNINTENDED CONSEQUENCES Performance-based reward systems sometimes have an unexpected—and undesirable— effect on employee behaviors.42 Consider the pizza company that decided to reward its driv- ers for on-time delivery. The plan got more hot pizzas to customers on time, but it also in- creased the accident rates of the company’s drivers because the incentive motivated them to drive recklessly.43 Global Connections 6.1 describes a few other examples in which reward systems had unintended consequences. The solution here is to carefully think through the consequences of rewards and, where possible, test incentives in a pilot project before apply- ing them across the organization.
Financial rewards come in many forms and, as was mentioned at the outset of this section, influence employees in complex ways. But money isn’t the only thing that
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166 Part Two Individual Behavior and Processes
motivates people to join an organization and perform effectively. In one recent very large survey, 51 percent of North American employees polled said they are prepared to accept a lesser role or lower wage to perform work that is more meaningful to them or their organization. “High performers don’t go for the money,” warns an executive at Imation Corp. “Good people want to be in challenging jobs and see a future where they can get even more responsibilities and challenges.”48 In other words, companies motivate employees mainly by designing interesting and challenging jobs, which is the topic we discuss next.
When Rewards Go Wrong There is an old saying that “what gets rewarded gets done.” But what companies reward isn’t always what they had in- tended their employees to do. Here are a few dramatic exam- ples of how performance-based rewards produce unintended consequences:
• Until a few years ago, most public transit bus drivers in San- tiago, Chile, were paid by the number of fare-paying passen- gers. This incentive system motivated drivers to begin their route on time, take shorter breaks, and drive efficiently, but it also had horrendous unintended consequences. To take on more passengers, bus drivers aggressively raced with competing busses to the next passenger waiting area, some- times cutting off each other and risking the safety of people in nearby vehicles. Drivers reduced time at each stop by speeding off before passengers were safely on board. They also left the bus doors open, resulting in many passenger injuries and fatalities during the journey. Some drivers drove past waiting areas if there was only one person waiting. Studies reported that Santiago’s transit busses caused one fatal accident every three days, and that drivers paid per-passenger caused twice as many traffic accidents as drivers paid per hour. Santiago now pays drivers partly by the distance traveled. Unfortunately, drivers are no longer motivated to ensure that passengers pay the fare (about one-third are freeloaders), and they sometimes skip passen- ger stops altogether when they are behind schedule.44
• A commercial laundry plant recently introduced an atten- dance reward in which employees with perfect attendance (no unexcused absences and no lateness more than 5 min- utes) each month had their name entered in a drawing for a $75 gift card. Employees with perfect attendance records over six months had a chance to receive a further $100 gift card. The attendance reward had the opposite effect than expected. Employees who were previously tardy reduced their lateness by only a couple of minutes, just so they were within the allowable 5 minutes. Those with previously excellent records had higher tardiness and absenteeism and 6 percent lower productivity when the program was active. These workers were apparently demotivated by the attendance award, possibly upset that the company didn’t recognize their earlier good performance and was now un- fairly rewarding those who are still tardy (but within the
5-minute limit). Another effect was that after employees became ineligible for the monthly reward (they were late or absent once), their tardiness record shot up and pro- ductivity dropped. A third effect of the reward was that employees were more likely to call in sick, so they still had absenteeism, but it was now justified, to be eligible for the monthly award.45
• Several years ago, a food processing plant discovered that in- sect parts were somehow getting into the frozen peas during processing. To solve this serious problem, management de- cided to reward employees for any insect parts they found in the peas. The incentive worked! Employees found hundreds of insect parts that they dutifully turned in for the bonus. The problem was that many of these insect pieces came from the employees’ backyards, not from the production line.46
• Integrated steel companies often rewarded managers for increased labor efficiency. The lower the labor-hours re- quired to produce a ton of steel, the larger the manager’s bonus. Unfortunately, steel firms usually didn’t count the work of outside contractors in the formula, so the reward system motivated managers to hire expensive contractors in the production process. By employing more contractors, the managers received a healthy bonus, even though the true cost of production increased, not decreased.47
global connections 6.1
When transit bus drivers in Santiago, Chile, were paid per passenger, they engaged in dangerous driving to transport as many passengers as possible.
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Chapter Six Applied Performance Practices 167
Job Design Practices How do you build a better job? That question has challenged organizational behavior ex- perts, psychologists, engineers, and economists for a few centuries. Some jobs have very few tasks and usually require very little skill. Other jobs are immensely complex and re- quire years of experience and learning to master them. From one extreme to the other, jobs have different effects on work efficiency and employee motivation. The challenge, at least from the organization’s perspective, is to find the right combination so that work is per- formed efficiently but employees are engaged and satisfied.49 This objective requires careful job design—the process of assigning tasks to a job, including the interdependency of those tasks with other jobs. A job is a set of tasks performed by one person. To understand this issue more fully, let’s begin by describing early job design efforts aimed at increasing work efficiency through job specialization.
JOB DESIGN AND WORK EFFICIENCY Li Mei’s first job at a toy factory in China’s Pearl River Delta involved using four pens to paint the eyes on dolls. The 18-year-old was given exactly 7.2 seconds to paint each doll— about 4,000 every day. Eventually, the paint fumes made Li Mei too faint to work, so she was moved to another department that stamped out plastic doll parts. Again, the work was repetitive: open the machine, insert the plastic, press the machine, remove the plastic. Li Mei repeated this cycle 3,000 times each day. After several months of this work, Li Mei was exhausted and disillusioned. “I’m tired to death and I don’t earn much,” she says despon- dently. “It makes everything meaningless.”50
Li Mei performs jobs with a high degree of job specialization. Job specialization occurs when the work required to make a toy—or any other product or service—is subdivided into separate jobs assigned to different people. Each resulting job includes a narrow subset of tasks, usually completed in a short cycle time. Cycle time is the time required to complete the task before starting over with another item or client. Li Mei had an average cycle time of 7.2 seconds, which means she repeats the same set of tasks hundreds of times each hour.
Why would companies divide work into such tiny bits? The simple answer is that job specialization potentially improves work efficiency. One reason for this higher efficiency is that employees have less variety of tasks to juggle (such as painting dolls versus operating a doll parts machine), so there is less time lost changing over to a different type of activity. Even when people can change tasks quickly, their mental attention lingers on the previous type of work, which slows down performance on the new task.51 A second reason for increased work efficiency is that employees can become proficient more quickly in specialized jobs. There are fewer physical and mental skills to learn and therefore less time to train and develop people for high performance. A third reason is that shorter work cycles give employees more frequent practice with the task, so jobs are mastered more quickly. A fourth reason why specialization tends to increase work efficiency is that employees with specific aptitudes or skills can be matched more precisely to the jobs for which they are best suited.52
The benefits of job specialization were noted more than 2,300 years ago by the Chinese philosopher Mencius and the Greek philosopher Plato. Scottish economist Adam Smith wrote 250 years ago about the advantages of job specialization. Smith described a small fac-
tory where 10 pin makers collectively produced as many as 48,000 pins per day because they performed specialized tasks. One person straightened the metal, another cut it, another sharpened one end of the cut piece, yet another added a white tip to the other end, and so forth. In con- trast, Smith explained that if these 10 people worked alone producing complete pins, they would collectively manu- facture no more than 200 pins per day.53
job design
The process of assigning tasks to a job, including the interdependency of those tasks with other jobs.
job specialization
The result of a division of labor, in which work is subdivided into separate jobs assigned to different people.
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168 Part Two Individual Behavior and Processes
SCIENTIFIC MANAGEMENT One of the strongest advocates of job specialization was Frederick Winslow Taylor, an American industrial engineer who introduced the principles of scientific management in the early 1900s.55 Scientific management consists of a toolkit of activities. Some of these in- terventions—employee selection, training, goal setting, and work incentives—are common today but were rare until Taylor popularized them. However, scientific management is mainly associated with high levels of job specialization and standardization of tasks to achieve maximum efficiency.
According to Taylor, the most effective companies have detailed procedures and work practices developed by engineers, enforced by supervisors, and executed by employees. Even the supervisor’s tasks should be divided: One person manages operational efficiency, another manages inspection, and another is the disciplinarian. Taylor and other industrial engineers demonstrated that scientific management significantly improves work efficiency. No doubt, some of the increased productivity can be credited to training, goal setting, and work incen- tives, but job specialization quickly became popular in its own right.
PROBLEMS WITH JOB SPECIALIZATION Frederick Winslow Taylor and his contemporaries focused on how job specialization reduces labor “waste” by improving the mechanical efficiency of work (i.e., matching skills, faster
The Arsenal of Venice introduced job specialization 200 years before economist Adam Smith famously praised this form of job design. Founded in 1104 AD, the state-owned shipbuilder eventually employed up to 4,000 people in specialized jobs (carpenters, iron workers, warehouse supervisors, etc.) to build ships and accessories (e.g., ropes). In 1570, the Arsenal had become so efficient through specialization that it built 100 ships in two months. The organization even had an assembly line along the waterway where workers apportioned food, ammunition, and other supplies from specially designed warehouses to the completed vessels.54
scientific management
The practice of systematically partitioning work into its smallest elements and standardizing tasks to achieve maximum efficiency.
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Chapter Six Applied Performance Practices 169
learning, less switchover time). Yet they didn’t seem to notice how this extreme job special- ization adversely affects employee attitudes and motivation. Some jobs—such as painting eyes on dolls—are so specialized that they soon become tedious, trivial, and socially isolat- ing. Employee turnover and absenteeism tend to be higher in specialized jobs with very short cycle times. Companies sometimes have to pay higher wages to attract job applicants to this dissatisfying, narrowly defined work.56
Job specialization affects output quality, but in two opposing ways. Job incumbents of specialized jobs potentially produce higher-quality results because, as we mentioned earlier, they master their work faster than do employees in jobs with many and varied tasks. This higher proficiency explains why specialist lawyers tend to provide better quality service than do generalist lawyers.57 But many jobs (such as Li Mei’s position in the toy factory) are spe- cialized to the point that they are highly repetitive and tedious. In these repetitive jobs, the positive effect of higher proficiency is easily offset by the negative effect of lower attentiveness and motivation caused by the tedious work patterns.
Job specialization also undermines work quality by disassociating job incumbents from the overall product or service. By performing a small part of the overall work, employees have diffi- culty striving for better quality or even noticing flaws with that overall output. As one observer of an automobile assembly line reports: “Often [employees] did not know how their jobs related to the total picture. Not knowing, there was no incentive to strive for quality—what did quality even mean as it related to a bracket whose function you did not understand?”58
Visit connect.mcgrawhill.com for activities and test questions to help you learn about the job characteristics model and other job design topics.
Job Design and Work Motivation Frederick Winslow Taylor may have overlooked the motivational effect of job character- istics, but it is now the central focus of many job design initiatives. Organizational behavior scholar Frederick Herzberg is credited with shifting the spotlight in the 1950s when he introduced motivator-hygiene theory.59 Motivator-hygiene theory proposes that employees experience job satisfaction when they fulfill growth and esteem needs (called motivators), and they experience dissatisfaction when they have poor working conditions, job security, and other factors categorized as lower-order needs (called hy- gienes). Herzberg argued that only characteristics of the job itself motivate employees, whereas the hygiene factors merely prevent dissatisfaction. It might seem obvious to us today that the job itself is a source of motivation, but the concept was radical when Her- zberg proposed the idea.
Motivator-hygiene theory has been soundly rejected by research studies, but Herzberg’s ideas generated new thinking about the motivational potential of the job itself.60 Out of
subsequent research emerged the job characteristics model, shown in Exhibit 6.2. The job characteristics model identifies five core job dimensions that produce three psychological states. Employees who experience these psychological states tend to have higher levels of internal work motivation (motivation from the work itself ), job satisfaction (particularly satisfaction with the work itself ), and work effectiveness.61
motivator-hygiene theory
Herzberg’s theory stating that employees are primarily motivated by growth and esteem needs, not by lower-level needs.
job characteristics model
A job design model that relates the motivational properties of jobs to specific personal and organizational consequences of those properties.
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170 Part Two Individual Behavior and Processes
Work motivation
Work effectiveness
General satisfaction
Growth satisfaction
Core job characteristics
Critical psychological
states Outcomes
Meaningfulness
Responsibility
Knowledge of results
• Knowledge and skill • Context satisfaction • Growth-need strength
Individual differences
Autonomy
Skill variety Task identity
Task significance
Feedback from job
skill variety
The extent to which employees must use different skills and talents to perform tasks within their jobs.
task identity
The degree to which a job requires completion of a whole or an identifiable piece of work.
task significance
The degree to which a job has a substantial impact on the organization and/or larger society.
autonomy
The degree to which a job gives employees the freedom, independence, and discretion to schedule their work and determine the procedures used in completing it.
CORE JOB CHARACTERISTICS The job characteristics model identifies five core job characteristics. Under the right condi- tions, employees are more motivated and satisfied when jobs have higher levels of these characteristics:
• Skill variety. Skill variety refers to the use of different skills and talents to complete a vari- ety of work activities. For example, sales clerks who normally only serve customers might be assigned the additional duties of stocking inventory and changing storefront displays.
• Task identity. Task identity is the degree to which a job requires completion of a whole or identifiable piece of work, such as assembling an entire broadband modem rather than just soldering in the circuitry.
• Task significance. Task significance is the degree to which the job affects the organiza- tion and/or larger society. It is an observable characteristic of the job (you can see how it benefits others) as well as a perceptual awareness, as Global Connections 6.2 illustrates.
• Autonomy. Jobs with high levels of autonomy provide freedom, independence, and discretion in scheduling the work and determining the procedures to be
EXHIBIT 6.2
The Job Characteristics Model Source: J. R. Hackman and G. Oldham, Work Redesign (Reading, MA: Addison-Wesley, 1980), p. 90. Used with permission.
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Chapter Six Applied Performance Practices 171
used to complete the work. In autonomous jobs, employees make their own deci- sions rather than rely on detailed instructions from supervisors or procedure manuals. Autonomy is considered the core motivational element of job design.62 As we learned in Chapter 4, autonomy is also an important mechanism to reduce stress in some situations.
• Job feedback. Job feedback is the degree to which employees can tell how well they are doing from direct sensory information from the job itself. Airline pilots can tell how well they land their aircraft, and road crews can see how well they have prepared the roadbed and laid the asphalt.
CRITICAL PSYCHOLOGICAL STATES The five core job characteristics affect employee motivation and satisfaction through three critical psychological states, shown in Exhibit 6.2. Skill variety, task identity, and task sig- nificance directly contribute to the job’s experienced meaningfulness—the belief that one’s work is worthwhile or important. Autonomy directly contributes to feelings of experienced responsibility—a sense of being personally accountable for the work outcomes. The third critical psychological state is knowledge of results—an awareness of the work outcomes based on information from the job itself.
INDIVIDUAL DIFFERENCES Job design doesn’t increase work motivation for everyone in every situation. Employees must have the required skills and knowledge to master the more challenging work. Otherwise, job design tends to increase stress and reduce job performance. The original model also states that employees will be motivated by the five core job characteristics only when they are
global connections 6.2
Rolls Royce Engine Services in California improved employees’ task significance and task identity through its Voice of the Customer program.
Customer Talks Raise Task Significance and Identity
Repairing aircraft engines is a complex business, involving the specialized work of dozens of people. However, people work- ing in specialized jobs tend to have lower task identity and task significance. “We work on airplane engines, but individual em- ployees work on different parts and don’t necessarily know what the customer uses it for,” says Maurice Carter, a bearing technician lead hand at the Rolls Royce Engine Services facility in Oakland, California. For this reason, Rolls Royce introduced “Voice of the Cus- tomer,” an initiative in which customer representatives visit the facility and talk to production staff about how the quality of these engines are important to them. “[A customer’s visit] allows you to know that your quality is key to the rescue of someone who may be stranded in a remote area, who relies on your ability to make sure that engine starts and continues to run in any adverse circumstance,” says Carter. “Voice of the customer isn’t just a nicety,” explains a Rolls Royce Engine Services executive. “It gives employees with rel- atively repetitive jobs the sense that they’re not just working on a part but rather are key in keeping people safe.”63
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172 Part Two Individual Behavior and Processes
satisfied with their work context (e.g., working conditions, job security) and have a high growth need strength. Growth need strength refers to an individual’s need for personal growth and development, such as work that offers challenges, cognitive stimulation, learning, and independent thought and action.64 However, research findings have been mixed, suggesting that employees might be motivated by job design no matter how they feel about their job context or how high or low they score on growth needs.65
SOCIAL AND PREDICTABILITY JOB CHARACTERISTICS The job characteristics model overlooks a few aspects of jobs that are also important for employee motivation and performance.66 In particular, the earlier model overlooks social characteristics of the job. One of these social characteristics is the extent to which the job requires employees to interact with other people (coworkers, clients, government represen- tatives, etc.). The topic of emotional labor, discussed in Chapter 4, relates to this social job characteristic. Required social interaction with other employees (called task interdepen- dence) will be discussed in more detail in Chapter 8, because it is an important factor in team dynamics. Another social characteristic of the job is feedback from others. Earlier, we said that feedback from the job itself is motivational, so feedback from clients, coworkers, and others may be equally important.
Another cluster of job characteristics missing from the earlier model considers the pre- dictability or information processing demands of the job.67 One of these characteristics is how predictable the job duties are from one day to the next (called task variability). Em- ployees in jobs with high task variability have nonroutine work patterns; they would per- form different types of tasks on one day than another day, and not necessarily know what tasks will be required next. Another one of these characteristics, called task analyzability, refers to how much the job can be performed using known procedures and rules. Jobs with high task analyzability have a ready-made “cookbook” to guide job incumbents through most decisions and actions, whereas jobs with low task analyzability require employee creativity and judgment to determine the best course of action. Task variability and task analyzability are important job characteristics to consider when designing orga- nizational structures, so we discuss them further in Chapter 13.
Job Design Practices that Motivate Three main strategies can increase the motivational potential of jobs: job rotation, job enlargement, and job enrichment.
JOB ROTATION Bang & Olufsen has always had fairly complex jobs at its manufacturing plants. When the Danish government established guidelines for employers to reduce monotonous and repetitive work, however, the Danish audio and multimedia company took further steps by training employees on all assembly stations and rotating them through different jobs every three or four hours.68 Bang & Olufsen executives have introduced the practice of moving employees from one job to another for the purpose of improving the motivational and physiological conditions of the work.
There are three potential benefits of job rotation. First, it minimizes health risks from repetitive strain and heavy lifting, because employees use different muscles and physical positions in the various jobs. Second, it supports multi-skilling (employees learn several jobs), which increases workforce flexibility in staffing the production process and in finding replacements for employees on vacation. A third benefit of job rotation is that it potentially
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Chapter Six Applied Performance Practices 173
reduces the boredom of highly repetitive jobs. Organizational behavior experts continue to debate whether job rotation really is a form of job redesign, because the jobs remain the same; they are still highly specialized. However, job rotation does increase variety throughout the workday, which explains why anecdotal evidence suggests it has some positive effects on em- ployee attitudes.
JOB ENLARGEMENT Job enlargement adds tasks to an existing job. This might involve combin- ing two or more complete jobs into one or just adding one or two more tasks to an existing job. Either way, skill variety increases because there are
more tasks to perform. A video journalist is an example of an enlarged job. As Exhibit 6.3 illustrates, a traditional news team consists of a camera operator, a sound and lighting spe- cialist, and the journalist who writes and presents or narrates the story. One video journalist performs all of these tasks.
Job enlargement significantly improves work efficiency and flexibility. However, re- search suggests that simply giving employees more tasks won’t affect motivation, perfor- mance, or job satisfaction. These benefits result only when skill variety is combined with more autonomy and job knowledge.70 In other words, employees are motivated when they perform a variety of tasks and have the freedom and knowledge to structure their work to achieve the highest satisfaction and performance. These job characteristics are at the heart of job enrichment.
JOB ENRICHMENT Job enrichment occurs when employees are given more responsibility for scheduling, coordinating, and planning their own work.71 For example, customer service employees at American Express go “off-script,” meaning that they use their own discretion regard- ing how long they should spend with a client and what to say to them.72 Previously, employees had to follow strict statements and take a fixed time for specific types of cus- tomer issues. Generally, people in enriched jobs experience higher job satisfaction and work motivation, along with lower absenteeism and turnover. Productivity is also higher
when task identity and job feedback are improved. Prod- uct and service quality tend to improve because job en- richment increases the jobholder’s felt responsibility and sense of ownership over the product or service.73
One way to increase job enrichment is by combining highly interdependent tasks into one job. This natural grouping approach is reflected in the video journalist job. Along with being an enlarged job, video journalism is an
job enlargement
The practice of adding more tasks to an existing job.
job enrichment
The practice of giving employees more responsibility for scheduling, coordinating, and planning their own work.
EYE Lighting International staff are actively involved in kaizen events and other forms of quality improvement. But to make their daily routines more engaging, the Ohio- based subsidiary of Iwasaki Electric of Japan practices job rotation. “Every employee on the factory floor changes positions at least once a day,” says EYE Lighting president Tom Salpietra. “The employees love it because they don’t get bored in their daily job. Ergonomically it’s good for them because they’re not doing the same repetitive task day-in and day-out when they come here.” Salpietra adds that job rotation “allows us a tremendous amount of flexibility” in work assignments. It also gives employees a better picture of the production process, which helps when conducting kaizen events.69
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174 Part Two Individual Behavior and Processes
example of job enrichment, because it naturally groups tasks together to complete an entire product (i.e., a news story). By forming natural work units, jobholders have stronger feelings of responsibility for an identifiable body of work. They feel a sense of ownership and, there- fore, tend to increase job quality. Forming natural work units increases task identity and task significance because employees perform a complete product or service and can more readily see how their work affects others.
A second job enrichment strategy, called establishing client relationships, involves putting employees in direct contact with their clients rather than using the supervisor as a go-between. By being directly responsible for specific clients, employees have more infor- mation and can make decisions affecting those clients.74 Establishing client relationships also increases task significance because employees see a line-of-sight connection between their work and consequences for customers. City Telecom in Hong Kong redesigned cus- tomer service jobs around customers for this reason. “We introduced a one-stop service for our customers,” explains Ellis Ng, City Telecom’s head of learning and development. “Each of our staff in the special duty unit (SDU) can handle all inquiries including sales, cus- tomer service and simple troubleshooting. They are divided into small working units and serve a set number of customers so they have the chance to build a rapport and create a personalized service.”75
Forming natural task groups and establishing client relationships are common ways to enrich jobs, but the heart of the job enrichment philosophy is to give employees more autonomy over their work. This basic idea is at the core of one of the most widely mentioned—and often misunderstood—practices, known as empowerment.
• Operates camera • Operates sound • Reports story
Traditional news team
Video journalist
Employee 2 Operates sound
Employee 3 Reports story
Employee 1 Operates camera
EXHIBIT 6.3 Job Enlargement of Video Journalists
Visit connect.mcgrawhill.com for activities and test questions to help you learn about empowerment and other applied performance practices.
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Chapter Six Applied Performance Practices 175
Empowerment Practices Empowerment is a term that has been loosely tossed around in corporate circles and been the subject of considerable debate among academics. However, the most widely accepted definition is that empowerment is a psychological experience represented by four dimen- sions: self-determination, meaning, competence, and the impact of the individual’s role in the organization.76
• Self-determination. Empowered employees feel that they have freedom, indepen- dence, and discretion over their work activities.
• Meaning. Employees who feel empowered care about their work and believe that what they do is important.
• Competence. Empowered people are confident about their ability to perform the work well and have a capacity to grow with new challenges.
• Impact. Empowered employees view themselves as active participants in the orga- nization; that is, their decisions and actions have an influence on the company’s success.
SUPPORTING EMPOWERMENT Chances are that you have heard leaders say they are “empowering” the workforce. Yet em- powerment is a state of mind, so what these executives really mean is that they are changing the work environment to support the feeling of empowerment.77 Numerous individual, job design, and organizational or work-context factors support empowerment.78 At the individ- ual level, employees must possess the necessary competencies to be able to perform the work, as well as handle the additional decision-making requirements.
Job characteristics clearly influence the degree to which people feel empowered.79 Employees are much more likely to experience self-determination when working in jobs with a high degree of autonomy and minimal bureaucratic control. They experience more meaningfulness when working in jobs with high levels of task identity and task signifi- cance. They experience more self-confidence when working in jobs that allow them to receive feedback about their performance and accomplishments. These job characteristics are evident at Svenska Handelsbanken. As Global Connections 6.3 describes, the Swedish bank delegates almost all power to the local branches, which results in better service and more motivated staff.
Several organizational and work-context factors also influence empowerment. Em- ployees experience more empowerment in organizations in which information and other resources are easily accessible. Empowerment also requires a learning orientation culture. In other words, empowerment flourishes in organizations that appreciate the value of employee learning and that accept reasonable mistakes as a natural part of the learning process. Furthermore, as we see at Svenska Handelsbanken, empowerment re- quires corporate leaders to trust employees and be willing to take the risks that empow- erment creates.
With the right individuals, job characteristics, and organizational environment, em- powerment can substantially improve motivation and performance. For instance, a study of bank employees concluded that empowerment improved customer service and tended to reduce conflict between employees and their supervisors. A study of nurses reported that empowerment is associated with higher trust in management, which ultimately in- fluences job satisfaction, belief and acceptance of organizational goals and values, and effective organizational commitment. Empowerment also tends to increase personal ini- tiative, because employees identify with and assume more psychological ownership of their work.81
empowerment
A psychological concept in which people experience more self- determination, meaning, competence, and impact regarding their role in the organization.
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176 Part Two Individual Behavior and Processes
Svenska Handelsbanken Branch- Level Empowerment80
One of Europe’s most successful banks doesn’t believe in budgets or centralized financial targets. Instead, Stockholm- based Svenska Handelsbanken AB gives its branch managers and staff considerable autonomy to run the local branches as their own businesses. Branches decide on which customer types to focus their services, how much to lend, and how much to charge. Branches even have discretion about how to advertise products, how much to pay for property leases, and how many staff to hire. Handelsbanken’s head office serves the branches, not the other way around. “The head office is there to support the branches. We don’t tell them what to do,” emphasizes Anders Bouvin, Handelsbanken’s chief executive in the United King- dom. “We don’t offer any targets or budgeting. . . . We have no volume goals, no profit goals, no timetable.” Handelsbanken takes this unique approach to banking based on its experience that branch managers can make better decisions than the folks at the head office. “We want to work as closely to customers as possible,” explains a Handelsbanken executive in Sweden. “It’s the local branch manager who de- cides which customers to work with and what product they should have.” By delegating power to the branches, Handels- banken provides more personalized banking to clients. It also customizes products to the local community and, by knowing clients better, reduces the bank’s risk of loan defaults. Handels- banken was one of the few European banks to weather the great financial crisis unscathed. Branch-level autonomy also motivates staff through feel- ings of empowerment. “The culture of our company is
based on entrusting employees and allowing those who are closest to the customer and who know the customer best to make decisions,” says Anders Bouvin. “Being empowered and having this trust leads to better decisions and higher satisfaction.” Bouvin points out that Handelsbanken’s approach is ulti- mately about how human beings should be treated. “We are different, even in Sweden,” Bouvin says. “This boils down to a fundamental humanist view. We believe that if you put trust in people, people will respond in a positive way and take respon- sibility and deliver results that they would not have achieved in a command and control environment.”
global connections 6.3
Svenska Handelsbanken supports better customer service and higher empowerment by giving its branch managers and staff considerable autonomy to run the local branches.
Self-Leadership Practices What is the most important characteristic that companies look for in their employees? Lead- ership potential, ability to work in a team, and good communication skills are important, but they don’t top the list in a survey of 800 British employers. Instead, the most important employee characteristic is self-motivation. Frode Gronvold can identify with these survey results. The chairman of Linstow Management Center, which develops and manages major shopping centers in Latvia and Estonia, seeks out people who demonstrate self-leadership. “I really appreciate when I have colleagues who take initiative,” says Gronvold. “I like people with a creative state of mind, who at the same time are autonomous, self-driven, self-motivated, with the ability to cooperate and get the best out of each other. These are the main skills that I am looking for in my employees.”82
Frode Gronvold looks for people who engage in self-leadership. They establish the self-direction and self-motivation needed to perform a task without their managers generat- ing that motivation or initiative.83 Self-leadership includes a toolkit of behavioral activities borrowed from social cognitive theory and goal setting (see Chapter 5). It also includes
LO 6-6
self-leadership
The process of influencing oneself to establish the self- direction and self-motivation needed to perform a task.
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Chapter Six Applied Performance Practices 177
constructive thought processes that have been extensively studied in sports psychology. Overall, self-leadership suggests that individuals mostly regulate their own actions through these behavioral and cognitive (thought) activities.
How well do you practice self-leadership? Visit connect.mcgrawhill .com to estimate how much you engage in several self-leadership activities.
SELF-LEADERSHIP STRATEGIES Although self-leadership consists of several processes, the five main activities are identified in Exhibit 6.4. These elements, which generally follow each other in a sequence, are personal goal setting, constructive thought patterns, designing natural rewards, self-monitoring, and self-reinforcement.84
Personal Goal Setting The first step in self-leadership is to set goals for your own work effort. In self-leadership, these goals are self-determined, rather than being assigned by or jointly decided with a supervisor. Research suggests that employees are more focused and perform better when they set their own goals, particularly in combination with other self-leadership practices.85 Personal goal setting also requires a high degree of self-awareness, because people need to understand their current behavior and performance before establish- ing meaningful goals for personal development.
Constructive Thought Patterns Before beginning a task and while performing it, employees should engage in positive (constructive) thoughts about that work and its accom- plishment. In particular, employees are more motivated and better prepared to accomplish a task after they have engaged in positive thinking.
Positive Self-Talk Do you ever talk to yourself? Most of us do, according to a major study of college students.87 Self-talk refers to any situation in which we talk to ourselves about our own thoughts or actions. The problem is that most self-talk is negative; we crit- icize much more than encourage or congratulate ourselves. Negative self-talk undermines our confidence and potential to perform a particular task. In contrast, positive self-talk creates a “can-do” belief and thereby increases motivation by raising our self-efficacy and reducing anxiety about challenging tasks.88 We often hear that professional athletes “psy- che” themselves up before an important event. They tell themselves that they can achieve their goal and that they have practiced enough to reach that goal. They are motivating themselves through self-talk.
Personal goal
setting
Constructive thought patterns
Designing natural rewards
Self- monitoring
Self- reinforcement
EXHIBIT 6.4 Elements of Self-Leadership
self-talk
The process of talking to ourselves about our own thoughts or actions.
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178 Part Two Individual Behavior and Processes
Mental Imagery You’ve probably heard the phrase “I’ll cross that bridge when I come to it!” Self-leadership takes the opposite view. It suggests that we need to mentally practice a task and imagine successfully performing it beforehand. This process, known as mental imagery, has two parts. One part involves mentally practicing the task, anticipating obstacles to goal accomplishment, and working out solutions to those obstacles before they occur. By mentally walking through the activities required to accomplish the task, we begin to see problems that may occur. We can then imagine what responses would be best for each contingency.89
While one part of mental imagery helps us to anticipate things that could go wrong, the other part
involves visualizing successful completion of the task. You might imagine the experience of completing the task and the positive results that follow, such as being promoted, receiving a prestigious award, or taking time off work. This visualization increases goal commitment and motivates people to complete the task effectively. This is the strategy that Tony Wang applies to motivate himself. “Since I am in sales, I think about the reward I get for closing new business—the commission check—and the things it will allow me to do that I really enjoy,” explains the sales employee in Washington, DC. “Or I think about the feeling I get when I am successful at something and how it makes me feel good, and use that to get me going.”90
Designing Natural Rewards Self-leadership recognizes that employees actively craft their jobs. To varying degrees, they can alter tasks and work relationships to make the work more motivating.91 One way to build natural rewards into the job is to alter the way a task is accomplished. People often have enough discretion in their jobs to make slight changes to suit their needs and preferences.
Self-Monitoring Self-monitoring is the process of keeping track at regular intervals of one’s progress toward a goal by using naturally occurring feedback. Some people can receive feedback from the job itself, such as members of a lawn maintenance crew who can see how they are improving the appearance of their client’s property. But many of us are unable to
mental imagery
The process of mentally practicing a task and visualizing its successful completion.
Bayer CropScience’s business in North Carolina is expanding, but it only wants job applicants with special characteristics. “It’s difficult to fill [these jobs],” says site leader Nick Crosby. “We’re not in the game these days of just getting people who can read, write, and shovel stuff around.” Instead, Bayer CropScience wants employees who practice self-leadership. “We need self-motivated people who work well with empowered teams— people who can think for themselves, do basic diagnosis, and keep the plants operating at an optimum,” he says.86
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Chapter Six Applied Performance Practices 179
observe our work output so readily. Instead, many people need to design feedback systems. Salespeople might arrange to receive monthly reports on sales levels in their territory. Pro- duction staff might have gauges or computer feedback systems installed so that they can see how many errors are made on the production line. Research suggests that people who have control over the timing of performance feedback perform their tasks better than do those with feedback assigned by others.92
Self-Reinforcement Self-leadership includes engaging in self-reinforcement, which is part of social cognitive theory described in Chapter 5. Self-reinforcement occurs when- ever an employee has control over a reinforcer but doesn’t “take” the reinforcer until com- pleting a self-set goal.93 A common example is taking a break after reaching a predetermined stage of your work. The work break is a self-induced form of positive rein- forcement. Self-reinforcement also occurs when you decide to do a more enjoyable task after completing a task that you dislike. For example, after slogging through a difficult report, you might decide to spend time doing a more pleasant task, such as catching up on industry news by scanning websites.
EFFECTIVENESS OF SELF-LEADERSHIP Self-leadership is shaping up to be a valuable applied performance practice in organiza- tional settings. A respectable body of research shows consistent support for most elements of self-leadership. Self-set goals and self-monitoring increased the frequency of wearing safety equipment among employees in a mining operation. Airline employees who re- ceived constructive thought training experienced better mental performance, enthusiasm, and job satisfaction than coworkers who did not receive this training. Mental imagery helped supervisors and process engineers in a pulp-and-paper mill transfer what they learned in an interpersonal communication skills class back to the job.94 Studies also indi- cate that constructive thought processes improve individual performance in cycling, hockey goaltending, ice skating, soccer, and other sports. Indeed, studies show that almost all Olympic athletes rely on mental rehearsal and positive self-talk to achieve their perfor- mance goals.95
PERSONAL AND SITUATIONAL PREDICTORS OF SELF-LEADERSHIP Some research suggests that self-leadership behaviors are more frequently found in people with higher levels of conscientiousness and extroversion. Some writers also suggest that peo- ple with a positive self-concept evaluation (i.e., self-esteem, self-efficacy, and internal locus of control) are more likely to apply self-leadership strategies.96
The work environment also seems to influence the extent to which employees engage in self-leadership. Specifically, employees require some degree of autonomy to engage in some or most aspects of self-leadership. They probably also feel more confident with
Do you have a proactive personality? Visit connect.mcgrawhill.com to assess the extent to which taking personal initiative is part of your disposition.
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180 Part Two Individual Behavior and Processes
self-leadership when their boss is empowering rather than controlling and if there is a high degree of trust between them. Employees are also more likely to engage in self-monitoring in companies that emphasize continuous measurement of performance.97 Overall, self-leadership promises to be an important concept and practice for improving employee motivation and performance.
6-1 Discuss the meaning of money and identify several individual-, team-, and organizational-level perfor- mance-based rewards.
Money (and other financial rewards) is a fundamental part of the employment relationship, but it also relates to our needs, our emotions, and our self-concept. It is viewed as a symbol of status and prestige, as a source of security, as a source of evil, or as a source of anxiety or feelings of inadequacy. Organizations reward employees for their membership and seniority, job status, competencies, and performance. Membership-based rewards may attract job applicants and seniority-based rewards reduce turnover, but these reward objectives tend to discourage turnover among those with the lowest performance. Rewards based on job status try to main- tain internal equity and motivate employees to compete for promotions. However, they tend to encourage a bureaucratic hierarchy, support status differences, and motivate employees to compete and hoard resources. Competency-based rewards are becoming increasingly popular because they encourage skill development. However, they tend to be subjectively mea- sured and can result in higher costs as employees spend more time learning new skills. Awards and bonuses, commissions, and other individual performance-based rewards have existed for centuries and are widely used. Many companies are shifting to team-based re- wards such as gainsharing plans and to organizational rewards such as employee stock ownership plans (ESOPs), stock op- tions, and profit sharing. Although ESOPs and stock options create an ownership culture, employees often perceive a weak connection between individual performance and the organiza- tional reward.
6-2 Describe five ways to improve reward effectiveness. Financial rewards have a number of limitations, but reward ef- fectiveness can be improved in several ways. Organizational lead- ers should ensure that rewards are linked to work performance, rewards are aligned with performance within the employee’s control, team rewards are used where jobs are interdependent, rewards are valued by employees, and rewards have no unin- tended consequences.
6-3 List the advantages and disadvantages of job specialization.
Job design is the process of assigning tasks to a job, including the interdependency of those tasks with other jobs. Job specialization subdivides work into separate jobs for different people. This
increases work efficiency, because employees master the tasks quickly, spend less time changing tasks, require less training, and can be matched more closely with the jobs best suited to their skills. However, job specialization may reduce work motivation, create mental health problems, lower product or service quality, and increase costs through discontentment, absenteeism, and turnover.
6-4 Diagram the job characteristics model and describe three ways to improve employee motivation through job design.
The job characteristics model is a template for job redesign that specifies core job dimensions, psychological states, and individ- ual differences. The five core job dimensions are skill variety, task identity, task significance, autonomy, and job feedback. Jobs also vary in their required social interaction (task interde- pendence), predictability of work activities (task variability), and procedural clarity (task analyzability). Contemporary job design strategies try to motivate employees through job rota- tion, job enlargement, and job enrichment. Organizations in- troduce job rotation to reduce job boredom, develop a more flexible workforce, and reduce the incidence of repetitive strain injuries. Job enlargement involves increasing the number of tasks within the job. Two ways to enrich jobs are clustering tasks into natural groups and establishing client relationships.
6-5 Define empowerment and identify strategies that support empowerment.
Empowerment is a psychological concept represented by four di- mensions: self-determination, meaning, competence, and impact, related to the individual’s role in the organization. Individual characteristics seem to have a minor influence on empowerment. Job design is a major influence, particularly autonomy, task iden- tity, task significance, and job feedback. Empowerment is also supported at the organizational level through a learning orienta- tion culture, sufficient information and resources, and corporate leaders who trust employees.
6-6 Describe the five elements of self-leadership and identify specific personal and work environment in- fluences on self-leadership.
Self-leadership is the process of influencing oneself to establish the self-direction and self-motivation needed to perform a task. This includes personal goal setting, constructive thought pat- terns, designing natural rewards, self-monitoring, and self- reinforcement. Constructive thought patterns include self-talk
chapter summary
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CASE STUDY: YAKKATECH, INC. Steven L. McShane, The University of Western Australia
YakkaTech Corp. is an information technology services firm employing 1,500 people throughout Washington and Ore- gon. YakkaTech has a consulting division, which mainly in- stalls and upgrades enterprise software systems and related hardware on the client’s site. YakkaTech also has a customer service division that consists of four customer contact centers serving clients within each region. Each customer service center consists of a half-dozen de- partments representing functional specializations (computer systems, intranet infrastructure, storage systems, enterprise
software systems, customer billing, etc.). These centers typi- cally have more than two dozen employees in each depart- ment. When a client submits a problem to the center using the online form, the message or call is directed to the depart- ment where the issue best applies. The query is given a “ticket” number and assigned to the next available employee in that department. Individual employees are solely responsi- ble for the tickets assigned to them. The employee investi- gates and corrects the issue, and the ticket is “closed” when the client agrees that the problem has been resolved.
and mental imagery. Self-talk occurs in any situation in which a person talks to himself or herself about his or her own thoughts or actions. Mental imagery involves mentally practic- ing a task and imagining successfully performing it before- hand. People with higher levels of conscientiousness,
extroversion, and a positive self-concept are more likely to ap- ply self-leadership strategies. It also increases in workplaces that support empowerment and have high trust between em- ployees and management.
critical thinking questions 1. As a consultant, you have been asked to recommend either a
gainsharing plan or a profit-sharing plan for employees who work in the four regional distribution and warehousing fa- cilities of a large retail organization. Which reward system would you recommend? Explain your answer.
2. Which of the performance reward practices—individual, team, or organizational—would work better in improving organizational goals? Please comment with reference to an organization of your choice.
3. Waco Tire Corporation redesigned its production facilities around a team-based system. However, the company president believes that employees will not be motivated unless they receive incentives based on their individual performance. Give three reasons why Waco Tire should introduce team-based rather than individual rewards in this setting.
4. What can organizations do to increase the effectiveness of financial rewards?
5. Most of us have watched pizzas being made while waiting in a pizzeria. What level of job specialization do you usually notice in these operations? Why does this high or low level of specialization exist? If some pizzerias have different levels of specialization than others, identify the contingencies that might explain these differences.
6. Can a manager or supervisor “empower” an employee? Discuss fully.
7. Describe a time when you practiced self-leadership to per- form a task successfully. With reference to each step in the self-leadership process, describe what you did to achieve this success.
8. Can self-leadership replace formal leadership in an organiza- tional setting?
autonomy, p. 170 employee stock ownership plans (ESOPs), p. 162 empowerment, p. 175 gainsharing plans, p. 162 job characteristics model, p. 169 job design, p. 167
job enlargement, p. 173 job enrichment, p. 173 job evaluation, p. 160 job specialization, p. 167 mental imagery, p. 178 motivator-hygiene theory, p. 169 profit-sharing plans, p. 163
scientific management, p. 168 self-leadership, p. 176 self-talk, p. 177 skill variety, p. 170 stock options, p. 163 task identity, p. 170 task significance, p. 170
key terms
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TEAM EXERCISE: IS STUDENT WORK ENRICHED? PURPOSE This exercise is designed to help you learn how to measure the motivational potential of jobs and evaluate the extent that jobs should be further enriched.
INSTRUCTIONS (SMALL CLASS) Being a student is like a job in several ways. You have tasks to perform, and someone (such as your instructor) oversees your work. Al- though few people want to be students most of their lives (the pay rate is too low!), it may be interesting to determine how enriched your job is as a student. 1. Students are placed into teams (preferably four or five
people).
2. Working alone, each student completes both sets of mea- sures in this exercise. Then, using the following guidelines,
they individually calculate the score for the five core job characteristics as well as the overall motivating-potential score for the job.
3. Members of each team compare their individual results. The group should identify differences of opinion for each core job characteristic. They should also note which core job characteristics have the lowest scores and recommend how these scores could be increased.
4. The entire class will then meet to discuss the results of the exercise. The instructor may ask some teams to present their comparisons and recommendations for a particular core job characteristic.
If the client experiences the same problem again, even a few days later, a new ticket is issued and sent to whichever employee is available to receive the ticket. A client’s problems are almost always handled by different employees each time, even when the issue is sent to the same department. Further- more, when a customer center department is heavily back- logged, clients are redirected to the same department at another regional center, where their problem can be ad- dressed more quickly. At one time, YakkaTech operated more than a dozen small customer contact centers throughout the region, because cli- ent problems had to be diagnosed and resolved on-site. To- day, employees can investigate most software and hardware system faults from the center through remote monitoring systems, rather than personally visit the client. Consequently, eight years ago, YakkaTech amalgamated its customer service operations into four large regional centers. Customer service staff work entirely within the center. When a client visit is required, the ticket is transferred to an individual or team in the consulting business, who then visits the client. YakkaTech’s customer service business has nearly doubled over the past five years, but with this growth has come in- creasing customer complaints regarding poor quality service. Many say that employees seem indifferent to the client’s problems. Others have commented on the slow response to their problems where the issue requires the involvement of more than one department. Several clients have also com- plained that they are continually educating YakkaTech’s cus- tomer service employees about the details of their unique IT systems infrastructure. Another concern is that about 18 months ago, Yakka- Tech’s voluntary employee quit rates in the contact centers had risen above the industry average. This shift increased labor costs due to the cost of recruiting new technical staff and the lower productivity of new employees. According to results of an employee survey two years ago (as well as informal com- ments since then), many employees felt that their work is
monotonous. Some also said that they felt disconnected from the consequences of their work. A few also complained about ongoing conflicts with people in other departments and the stress of serving dissatisfied clients. In response, YakkaTech’s executive team decided to raise pay rates for its customer service staff to become among the highest in the industry around the Pacific Northwest. The assumption was that the high pay rates would improve morale and reduce turnover, thereby reducing hiring costs and improving produc- tivity. In addition, YakkaTech introduced a vested profit-sharing plan, in which employees received the profit-sharing bonus only if they remained with the company for two years after the bonus was awarded. Employees who quit or were fired for just cause before the vesting period forfeited the bonus. Employee turnover rates dropped dramatically, leading the executive team to conclude that customer service quality and productivity would improve. Instead, customer complaints and productivity remain below expectations and, in some cases, have worsened. Experienced employees continue to complain about the work. There have been a few disturbing incidents in which employees have been careless in solving client problems or did not bother to forward tickets that should have been as- signed to another department. Employee referrals (where staff recommend friends to join the company) have become rare events, whereas at one time they represented a significant source of qualified job applicants. Furthermore, a few executives have recently overheard employees say that they would like to work elsewhere but can’t afford to leave YakkaTech.
Discussion Questions
1. What symptom(s) in this case suggest that something has gone wrong?
2. What are the main causes of these symptoms? 3. What actions should YakkaTech executives take to correct
these problems? © 2009 Steven L. McShane
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Job Diagnostic Survey
CIRCLE THE NUMBER ON THE RIGHT THAT BEST DESCRIBES STUDENT WORK VERY LITTLE MODERATELY VERY MUCH
CIRCLE THE NUMBER ON THE RIGHT THAT BEST DESCRIBES VERY VERY STUDENT WORK INACCURATE UNCERTAIN ACCURATE
Source: Adapted from the Job Diagnostic Survey, developed by J. R. Hackman and G. R. Oldham. The authors have released any copyright ownership of this scale [see J. R. Hackman and G. Oldham, Work Redesign (Reading, MA: Addison-Wesley, 1980), p. 275].
INSTRUCTIONS (LARGE CLASS)
1. Working alone, each student completes both sets of mea- sures in this exercise. Then, using the guidelines below, each student individually calculates the score for the five core job characteristics, as well as the overall motivating- potential score for the job.
2. Using a show of hands or classroom technology, students indicate their results for each core job characteristic. The
instructor will ask for results for several bands across the range of the scales. Alternatively, students can complete this activity prior to class and submit their results through online classroom technology. Later, the instructor will provide feedback to the class showing the collective results (i.e., distribution of results across the range of scores).
3. Where possible, the instructor might ask students with very high or very low results to discuss their views with the class.
1. To what extent does student work permit you to decide 1 2 3 4 5 6 7 on your own how to go about doing the work?
2. To what extent does student work involve doing a 1 2 3 4 5 6 7 whole or identifiable piece of work, rather than a small portion of the overall work process?
3. To what extent does student work require you to do 1 2 3 4 5 6 7 many different things, using a variety of your skills and talents?
4. To what extent are the results of your work as a 1 2 3 4 5 6 7 student likely to significantly affect the lives and well-being of other people (e.g., within your school, your family, society)?
5. To what extent does working on student activities 1 2 3 4 5 6 7 provide information about your performance?
6. Being a student requires me to use a number of 1 2 3 4 5 6 7 complex and high-level skills.
7. Student work is arranged so that I do not have the chance 7 6 5 4 3 2 1 to do an entire piece of work from beginning to end.
8. Doing the work required of students provides many 1 2 3 4 5 6 7 chances for me to figure out how well I am doing.
9. The work students must do is quite simple and repetitive. 7 6 5 4 3 2 1
10. The work of a student is the type where a lot of other 1 2 3 4 5 6 7 people can be affected by how well the work gets done.
11. Student work denies me any chance to use my personal 7 6 5 4 3 2 1 initiative or judgment in carrying out the work.
12. Student work provides me the chance to completely 1 2 3 4 5 6 7 finish the pieces of work I begin.
13. Doing student work by itself provides very few clues 7 6 5 4 3 2 1 about whether I am performing well.
14. As a student, I have considerable opportunity for 1 2 3 4 5 6 7 independence and freedom in how I do the work.
15. The work I perform as a student is not very significant 7 6 5 4 3 2 1 or important in the broader scheme of things.
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PURPOSE This exercise is designed to help you under- stand the types of attitudes toward money and assess your attitude toward money.
INSTRUCTIONS Read each of the statements below and circle the response that you believe best reflects your position regarding each statement. Then, use the scoring key in
Appendix A at the end of the book to calculate your results. This exercise should be completed alone so that you can assess yourself honestly without concerns of social compari- son. Class discussion will focus on the meaning of money, including the dimensions measured here and other aspects of money that may have an influence on behavior in the workplace.
SELF-ASSESSMENT
WHAT IS YOUR ATTITUDE TOWARD MONEY?
CALCULATING THE MOTIVATING-POTENTIAL SCORE
Scoring Core Job Characteristics: Use the following set of calculations to estimate the motivating-potential score for the job of being a student. Use your answers from the Job Diag- nostic Survey that you completed earlier.
Skill variety (SV) Question 3 1 6 1 9 3
5
Task identity (TI) Question 2 1 7 1 12 3
5
Task significance (TS) Question 4 1 10 1 15 3
5
Autonomy Question 1 1 11 1 14 3
5
Job feedback Question 5 1 8 1 13 3
5
Calculating Motivating-Potential Score (MPS): Use the following formula and the earlier results to calculate the motivating-potential score. Notice that skill variety, task iden- tity, and task significance are averaged before being multiplied by the score for autonomy and job feedback.
_SV 1 TI 1 TS3 + 3 Autonomy 3 Job Feedback
_ 1 1 3 + 1 1 5
STRONGLY STRONGLY TO WHAT EXTENT DO YOU AGREE OR DISAGREE THAT . . . AGREE AGREE NEUTRAL DISAGREE DISAGREE
Money Attitude Scale
(continued)
1. I sometimes purchase things because I know they will 5 4 3 2 1 impress other people.
2. I regularly put money aside for the future. 5 4 3 2 1
3. I tend to get worried about decisions involving money. 5 4 3 2 1
4. I believe that financial wealth is one of the most 5 4 3 2 1 important signs of a person’s success.
5. I keep a close watch on how much money I have. 5 4 3 2 1
6. I feel nervous when I don’t have enough money. 5 4 3 2 1
7. I tend to show more respect to people who are 5 4 3 2 1 wealthier than I am.
8. I follow a careful financial budget. 5 4 3 2 1
9. I worry about being financially secure. 5 4 3 2 1
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185
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.
STRONGLY STRONGLY TO WHAT EXTENT DO YOU AGREE OR DISAGREE THAT . . . AGREE AGREE NEUTRAL DISAGREE DISAGREE
Sources: Adapted from J. A. Roberts and C. J. Sepulveda, “Demographics and Money Attitudes: A Test of Yamauchi and Templer’s (1982) Money Attitude Scale in Mexico,” Personality and Individual Differences, 27 (July 1999), pp. 19–35; K. Yamauchi and D. Templer, “The Development of a Money Attitudes Scale,” Journal of Personality Assessment, 46 (1982), pp. 522–528.
10. I sometimes boast about my financial wealth or how 5 4 3 2 1 much money I make.
11. I keep track of my investments and financial wealth. 5 4 3 2 1
12. I usually say “I can’t afford it,” even when I can 5 4 3 2 1 afford something.
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7 Decision Making and Creativity
le a
rn in
g o
b je
ct iv
e s After reading this chapter, you should be able to:
7-1 Describe the rational choice paradigm of decision making.
7-2 Explain why people differ from the rational choice paradigm when identifying problems/ opportunities, evaluating/choosing alternatives, and evaluating decision outcomes.
7-3 Discuss the roles of emotions and intuition in decision making.
7-4 Describe employee characteristics, workplace conditions, and specific activities that support creativity.
7-5 Describe the benefits of employee involvement and identify four contingencies that affect the optimal level of employee involvement.
186
c ha pter
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illiam Ackman, JCPenney’s largest shareholder, was beaming when Ron Johnson became the department store chain’s new chief executive officer. Johnson led the development of Apple’s successful retail stores and previously had crafted the “cheap chic” concept at Target
Corporation. Johnson held the promise that he could spin the same magic at
JCPenney, which was losing ground to other retailers. “Ron Johnson’s record of
retailing success makes him the ideal leader to fix JCP,” Ackman concluded. Less than
two years later, JCPenney’s sales had plummeted by 32 percent, and Johnson was
replaced by JCPenney’s previous CEO, who reversed most of Johnson’s ill-fated decisions.
Ackman publicly acknowledged that Johnson made “big mistakes” and that the results
were “very close to a disaster,” right before he sold most of his JCPenney stock.
What went wrong? The main explanation is that Johnson and his executive team
were overconfident in their diagnosis of JCPenney’s problems and their
preconceived solutions to those problems. In fact, Johnson apparently defined
JCPenney’s malady as a solution: It needed to be more like Apple. Johnson frequently
described Apple practices to justify his changes, and at least six of his new executive
team members previously worked at Apple.
Apple rarely discounted its products, so Johnson replaced JCPenney’s popular
coupons and store sales (he counted 590 of them each year) with “fair and square”
everyday low pricing. He tried to replicate Apple’s “genius bar” with a “Town Square”
in JCPenney’s heavy traffic area. “Just like in the Apple store, you have to walk
through the products to get to the Town Square,” Johnson explained. Johnson also
scaled back JCPenney’s in-house products to make room for external brands (e.g.,
Sephora, Martha Stewart) as specialized boutiques within each store. These and
other changes worked well at Apple, but JCPenney customers no longer believed
they were getting a good deal at the department store.
Many industry specialists were especially shocked when Johnson launched
JCPenney’s turnaround with little or no input from employees or customers, and
without first testing the changes in a few locations. These are standard practices in
the retail fashion business, because customers can easily switch to competitors if
il w n susu
W
187
Ron Johnson and his executive team at JCPenney made a series of decision blunders due to their overconfident diagnosis of the retailer’s problems and preconceived (Apple-centric) solutions to those problems.
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188 Part Two Individual Behavior and Processes
they don’t like what they see. But whether due to overconfident decision making or
reliance on Apple’s practices, Johnson changed the company without knowing how
customers would react. When a colleague suggested testing the no-discount strategy
at a few stores, Johnson decisively replied: “We didn’t test at Apple.”
“Successful executives often delude themselves into thinking they are infallible,”
warned industry consultant Steven Snyder just before Johnson was ousted. “We saw
this kind of behavior when Johnson declined to test his pricing overhaul for JCP
prior to an all-store rollout.”1
JCPenney’s recent troubles illustrate several decision-making challenges that we discuss in this chapter. JCPenney needed to change, and Ron Johnson and his executive team had some understanding of the retailer’s underlying problems. But their diagnosis of the retailer’s problems and their search for the best solutions were also blinded by their success at Apple, Inc. Furthermore, they failed to involve JCPenney’s own staff and customers in the decision-making process. This lack of involvement not only blocked the potential for better ideas; it may have hampered the implementation of Johnson’s own decisions.
This chapter examines decision making from three perspectives or paradigms. We begin with the rational choice paradigm, which has historically (but misguidedly) been viewed as the ideal way to make decisions. Next, we review the rational choice elements of the “imper- fect rationality” paradigm—a set of theories that identify human limitations in the quest for perfectly rational decision making. This chapter then examines the dual rational–emotional paradigm, which recognizes that emotions play a central role (both good and bad) in the decision-making process. The latter part of this chapter focuses on two topics that inter- twine with decision making: creativity and employee involvement.
Rational Choice Paradigm of Decision Making Decision making is the process of making choices among alternatives with the intention of moving toward some desired state of affairs.2 It is vital to an organization’s health, rather like breathing is to a human being. Indeed, leaders increasingly view themselves as physicians who resuscitate organizations by encouraging and teaching employees at all levels to make decisions more quickly, effectively, and creatively. All businesses, governments, and not-for- profit agencies depend on employees to foresee and correctly identify problems, to survey alternatives and pick the best one based on a variety of stakeholder interests, and to execute those decisions effectively.
How should people make decisions in organizations? Most business leaders would likely answer this question by saying that effective decision making involves identifying, selecting, and applying the best possible alternative. In other words, the best decisions use pure logic and all available information to choose the alternative with the highest value—such as high- est expected profitability, customer satisfaction, employee well-being, or some combination of these outcomes. These decisions sometimes involve complex calculations with varied data to produce a formula that points to the best choice.
In its extreme form, this calculative view of decision making represents the rational choice paradigm, which has dominated decision making philosophy in Western so- cieties for most of written history.3 It was established 2,500 years ago when Plato and his contemporaries in ancient Greece raised logical debate and reasoning to a fine art. About 400 years ago, Descartes and other European philosophers emphasized that the ability to make logical
decision making
The conscious process of making choices among alternatives with the intention of moving toward some desired state of affairs.
rational choice paradigm
The view in decision making that people should—and typically do—use logic and all available information to choose the alternative with the highest value.
LO 7-1
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Chapter Seven Decision Making and Creativity 189
decisions is one of the most important accomplishments of human beings. In the 1700s, Scottish philosophers refined the notion that the best choice is the one that offers the great- est satisfaction or “utility.”
The rational choice paradigm selects the choice with the highest utility through the cal- culation of subjective expected utility (SEU).4 Subjective expected utility is the probability (expectancy) of satisfaction (utility) for each alternative. SEU is the foundation of several organizational behavior theories, including the attitude model in Chapter 4 and the expec- tancy theory of motivation in Chapter 5.
To understand SEU, consider this example: Suppose that you need to select one supplier from among many that offer a particular raw material for your company. Rationally, you would choose the supplier that will produce highest overall satisfaction for your company. That expected satisfaction depends on the expected satisfaction (utility) of each outcome, as well as the probability (“expected” in subjective expected utility) that each supplier will pro- vide that outcome. One outcome might be the timely delivery of raw materials. You might estimate that one supplier will consistently deliver the product on time, whereas other sup- pliers have lower probabilities of timely delivery. Another outcome might be the quality of raw materials. Again, you discover that suppliers differ in their likelihood of providing con- sistently high quality materials. Multiply the utility of each outcome together with the prob- ability of that outcome occurring, then add those results across all outcomes to figure out which supplier has the highest overall SEU. The key point from this example is that all de- cisions rely to some degree on (a) the expected value of the outcomes (utility) and (b) the probability of those good or bad outcomes occurring (expectancy).
RATIONAL CHOICE DECISION-MAKING PROCESS Along with its reliance on subjective expected utility, the rational choice paradigm assumes that decision makers follow the systematic process illustrated in Exhibit 7.1.5 The first step is to identify the problem or recognize an opportunity. A problem is a deviation between the current and the desired situation—the gap between “what is” and “what ought to be.” This deviation is a symptom of more fundamental causes that need to be corrected.6 The “ought to be” refers to goals, and these goals later help evaluate the selected choice. For instance, if the goal is to answer incoming client calls within 30 seconds, the problem is the gap between that goal and the actual time the call center takes to answer most client calls. An opportunity is a deviation between current expectations and a potentially better situation that was not previously expected. In other words, decision makers realize that some deci- sions may produce results beyond current goals or expectations.
The second step involves choosing the best decision process. This step is really a meta- decision—deciding how to decide—because it refers to choosing among the different ap- proaches and processes to make the decision.7 One meta-decision is whether to solve the problem alone or involve others in the process. Later in this chapter, we’ll examine the con- tingencies of employee involvement in the decision. Another meta-decision is whether to assume the decision is programmed or nonprogrammed. Programmed decisions follow stan- dard operating procedures; they have been resolved in the past, so the optimal solution has already been identified and documented. In contrast, nonprogrammed decisions require all steps in the decision model, because the problems are new, complex, or ill-defined.
Visit connect.mcgrawhill.com for activities and test questions to help you learn about the decision making process and its human limitations.
subjective expected utility
The probability (expectancy) of satisfaction (utility) resulting from choosing a specific alternative in a decision.
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190 Part Two Individual Behavior and Processes
The third step in the rational choice decision-making process is to identify and/or de- velop a list of possible choices. It usually begins by searching for ready-made solutions, such as practices that have worked well on similar problems. If an acceptable solution cannot be found, then decision makers need to design a custom-made solution or modify an existing one. The fourth step is to select the choice with the highest SEU. This calls for all possible information about all possible alternatives and their outcomes, but the rational choice para- digm assumes it can be accomplished with ease.
The fifth step in the rational choice decision-making process is to implement the selected alternative. Rational choice experts have little to say about this step, because they assume implementation occurs without any problems. Finally, the sixth step is evaluating whether the gap has narrowed between “what is” and “what ought to be.” Ideally, this information should come from systematic benchmarks so that relevant feedback is objective and easily observed.
PROBLEMS WITH THE RATIONAL CHOICE PARADIGM The rational choice paradigm seems so logical, yet it is impossible to apply in reality, because people are not and cannot be perfectly rational.8 Instead, we need to examine theories that explain why people engage in imperfect rationality. Over the next several pages, we reex- amine each step in the rational choice decision-making process, adding more detail about what really happens, through the lens of “imperfect rationality.”
Identifying Problems and Opportunities When Albert Einstein was asked how he would save the world in one hour, he replied that the first 55 minutes should be spent defining the problem and the last 5 minutes solving it.9 Einstein’s point is that problem identification is not just the first step in decision making; it is arguably the most important step. But problems and opportunities are not clearly labeled objects that magically appear on our desks or computer screens. Instead, they are conclu- sions that we form on the basis of ambiguous and conflicting information.10
1. Identify problem or opportunity
2. Choose the best decision process
3. Discover or develop possible choices
4. Select the choice with the highest value
5. Implement the selected
choice
6. Evaluate the selected
choice
2. CC the dec pro
3. Di or de pos chcho
entt ed
ate ed
Rational Choice
Decision- Making Process
EXHIBIT 7.1
Rational Choice Decision- Making Process
LO 7-2
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Chapter Seven Decision Making and Creativity 191
PROBLEMS WITH PROBLEM IDENTIFICATION The problem identification stage is itself filled with problems. Below are five of the most widely recognized concerns.12
Stakeholder Framing Employees, suppliers, customers, and other stakeholders offer (or hide) information in ways that cause decision makers to see the situation as a problem, opportunity, or steady sailing. Employees point to external factors rather than their own faults as the cause of production delays. Suppliers market their new products as unique opportunities and dismiss competitor products as problems to be avoided. Stakeholders also offer a concise statement of the situation as a problem or otherwise, in the hope the decision maker will accept their verdict without further analysis. Decision makers fall prey to these constructed realities because they have a need to simplify the daily bombardment of com- plex and often ambiguous information.
Decisive Leadership Various studies have found that executives are evaluated by their decisiveness, including how quickly they determine that the situation is a problem, opportunity, or nothing worth their attention.13 Consequently, many leaders announce problems or oppor- tunities before having a chance to logically assess the situation. The result is often a misguided effort to solve an ill-defined problem or resources wasted on a poorly identified opportunity.
Solution-Focused Problems When decision makers recognize that the situation requires a decision, they sometimes describe the problem as a veiled solution.14 For instance, someone might say: “The problem is that we need more control over our suppliers.” This isn’t a description of the problem; it is a rephrased statement of a solution to a problem that has not been adequately diagnosed. As was described at the beginning of this chapter, Ron Johnson and his executive team likely engaged in solution-focused problem identification, because they viewed JCPenney’s problems in terms of solutions that worked at Apple (e.g., JCPenney’s problem was that successful companies shouldn’t rely on coupons or store sales). This solution-focused problem identification provided comforting closure in response to the otherwise ambiguous and uncertain nature of problems, but it failed to fully diagnose the underlying causes that need to be addressed.
Perceptual Defense People sometimes fail to become aware of problems because they block out bad news as a coping mechanism. Their brain refuses to see information that
A light rain had just begun when the 5:30 p.m. GO Transit train left downtown Toronto, Canada, for its outer suburbs destination. Within the next 15 minutes, the rain became torrential, and the nearby river flooded the train tracks ahead. The driver stopped in time, but the water rose so quickly that it surrounded the train before the driver could reverse. Passengers scrambled to the upper level of the double-decker train and were stranded for up to seven hours. GO Transit officials later explained that it was difficult to define the situation as a flooding problem. “We knew there was a thunderstorm warning coming, but that’s not unusual,” said a GO transit official later. A senior executive added that a general advisory about possible flooding in low-lying areas wouldn’t have changed their plans: “Life is never as black and white as that,” he said. “Our challenge is managing grey.”11
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192 Part Two Individual Behavior and Processes
Famous Missed Opportunities Mental models create road maps that guide our decisions. Unfortunately, these maps also potentially block our ability to see emerging problems and opportunities. Here are a few fa- mous examples:
• In the mid-1990s, two Stanford PhD students decided to sell their new search engine software for $1 million so they could concentrate on completing their education. Execu- tives at Excite, Inc., a popular search engine company at that time, weren’t interested because they were focused on building a media company. “If our search is only just good enough, then that’s okay with us,” Excite’s CEO apparently said, even after the students reduced the price to $750,000. Executives at Yahoo! and Infoseek also decided not to buy the search engine. After these rejections, the two students, Larry Page and Sergey Brin, decided to form their own company, called Google, to realize the potential of their new invention. Several years later, Excite cofounder Joe Kraus acknowledged the decision error: “Let me just say that we were wrong,” said Kraus about passing up the op- portunity to own the core technology that made Google famous. “I’ll be the first to stand up and say ‘whoops.’ ”16
• One of the most famous commercials in history, the Apple Macintosh “1984” ad, almost didn’t get aired, because the computer maker’s external board members thought it was the worst commercial they had ever seen. They complained that the commercial mentioned the product and company only in the last few seconds. The company asked the cre- ative agency that produced the commercials to sell the two Super Bowl time slots in which it would have been shown, but the agency’s CEO claimed that he could not find a buyer for the 60-second slot. The single 60-second ad shown during the Super Bowl became one of the top news stories over the next week and has since been rated as the best commercial in history. Apple’s board members subse- quently apologized for their misjudgment of the “1984” commercial and applauded the Macintosh team for a suc- cessful launch.17
• Even though the Harry Potter books were becoming the world’s best sellers, Hollywood filmmakers were reluctant to produce film versions unless the Hogwarts School of Witchcraft was set in the United States or, at least, that Harry was an American at the British academy. Some filmmakers even insisted that all the main characters had to be Americans for the films to have any degree of success. Fortunately, after considerable persuasion, Hollywood decision makers reluc- tantly agreed to keep the location and characters all British.18
• Graphical user interfaces, mice, windows, pull-down menus, laser printing, distributed computing, and Ethernet technol- ogies weren’t invented by Apple, Microsoft, or IBM. These essential elements of contemporary personal computing originated in the 1970s, with researchers at Xerox PARC. Unfortunately, Xerox executives were focused on their photocopier business and didn’t recognize the value of the Xerox PARC inventions, many of which never got patented. The lost value of Xerox PARC’s discoveries is much greater than the value of the entire photocopier industry today.19
global connections 7.1
Preconceived mental models of business success prevented Excite executives from recognizing the potential of Google’s search engine.
threatens their self-worth. The tendency to engage in perceptual defense varies from one decision maker to the next. Studies also report that a perceptual defense is more common when decision makers have limited options to solve the problem.15
Mental Models Decision makers are victims of their own problem framing due to existing mental models. Mental models are visual or relational images in our mind of the external world; they fill in information that we don’t immediately see, which helps us under- stand and navigate in our surrounding environment (see Chapter 3). Many mental images are also prototypes—they represent models of how things should be. Unfortunately, these mental models can blind us from seeing unique problems or opportunities because they produce a negative evaluation of things that are dissimilar to the mental model. If an idea doesn’t fit the existing mental model of how things should work, then it is quickly dismissed as unworkable or undesirable. Global Connections 7.1 describes several examples where mental models caused missed opportunities.
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Chapter Seven Decision Making and Creativity 193
IDENTIFYING PROBLEMS AND OPPORTUNITIES MORE EFFECTIVELY Recognizing problems and opportunities will always be a challenge, but one way to improve the process is by becoming aware of the five problem identification biases described previ- ously. For example, by recognizing that mental models restrict a person’s perspective of the world, decision makers are more likely to consider other perspectives of reality. Along with increasing their awareness of problem identification flaws, leaders require considerable will- power to resist the temptation of looking decisive when a more thoughtful examination of the situation should occur.
A third way to improve problem identification is for leaders to create a norm of “divine discontent.” They are never satisfied with the status quo, and this aversion to complacency creates a mindset that more actively searches for problems and opportunities.20 Finally, employees can minimize problem identification errors by discussing the situation with colleagues. It is much easier to discover blind spots in problem identification when listening to how others perceive the situation. Opportunities also become apparent when outsiders explore this information from their different mental models.
Searching for, Evaluating, and Choosing Alternatives According to the rational choice paradigm of decision making, people rely on logic to evaluate and choose alternatives. This paradigm assumes that decision makers have well- articulated and agreed-on organizational goals, that they efficiently and simultaneously process facts about all alternatives and the consequences of those alternatives, and that they choose the alternative with the highest payoff.
Nobel Prize–winning organizational scholar Herbert Simon questioned these assump- tions a half century ago. He argued that people engage in bounded rationality because they process limited and imperfect information and rarely select the best choice.21 Simon and other OB experts demonstrated that the way people evaluate and choose alternatives differs from the rational choice paradigm in several ways, as illustrated in Exhibit 7.2. These differ- ences are so significant that many economists are now shifting from rational choice to bounded rationality assumptions in their theories. Let’s look at these differences in terms of goals, information processing, and maximization.
PROBLEMS WITH GOALS The rational choice paradigm assumes that organizational goals are clear and agreed-on. In fact, these conditions are necessary to identify “what ought to be,” and therefore, they pro- vide a standard against which each alternative is evaluated. Unfortunately, organizational goals are often ambiguous or in conflict with each other.
PROBLEMS WITH INFORMATION PROCESSING The rational choice paradigm also makes several assumptions about the human capacity to process information. It assumes that decision makers can process information about all alternatives and their consequences, whereas this is not possible in reality. Instead, people evaluate only a few alternatives and only some of the main outcomes of those alternatives.22 For example, there may be dozens of computer brands to choose from and dozens of features to consider, yet people typically evaluate only a few brands and a few features.
A related problem is that decision makers typically evaluate alternatives sequentially rather than all at the same time. This sequential evaluation occurs partly because all alterna- tives are not available to the decision maker at the same time.23 Consequently, as a new
bounded rationality
The view that people are bounded in their decision-making capabilities, including access to limited information, limited information processing, and tendency toward satisficing rather than maximizing when making choices.
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194 Part Two Individual Behavior and Processes
alternative comes along, it is immediately compared to an implicit favorite—an alternative that the decision maker prefers and that is used as a comparison with other choices. When choosing a new computer system, for example, people typically have an implicit favorite brand or model against which they compare the other brands. This sequential process of comparing alternatives with an implicit favorite occurs even when decision makers aren’t consciously aware that they are doing this.24
Although the implicit favorite comparison process seems hardwired in human decision making (i.e., we naturally compare things), it often undermines effective decision making, because people distort information to favor their implicit favorite over the alternative choices. They tend to ignore problems with the implicit favorite and the advantages of alter- natives. Decision makers also overweight factors on which the implicit favorite is better and underweight areas in which the alternative is superior.25
Biased Decision Heuristics Subjective expected utility is the cornerstone of rational choice decision making, yet psychologists Amos Tversky and Daniel Kahneman discovered
that human beings have built-in decision heuristics that au- tomatically distort either the probability of outcomes or the value (utility) of those outcomes. Three of the most widely studied heuristic biases are anchoring and adjust- ment, availability, and representativeness:26
• Anchoring and adjustment heuristic. This heuris- tic states that we are influenced by an initial anchor point and do not sufficiently move away from that point as new information is provided.27 The anchor
EXHIBIT 7.2 Rational Choice Assumptions versus Organizational Behavior Findings for Choosing Alternatives
Goals are clear, compatible, and agreed upon
Rational Choice Paradigm Assumptions
Observations from Organizational Behavior
Decision makers can calculate all alternatives and their outcomes
Decision makers evaluate all alternatives simultaneously
Decision makers use absolute standards to evaluate alternatives
Decision makers use factual information to choose alternatives
Decision makers choose the alternative with the highest payoff
Goals are ambiguous, in conflict, and lack agreement
Decision makers have limited information-processing abilities
Decision makers evaluate alternatives sequentially
Decision makers evaluate alternatives against an implicit favorite
Decision makers use perceptually distorted information
Decision makers choose the alternative that is good enough (satisficing)
implicit favorite
A preferred alternative that the decision maker uses repeatedly as a comparison with other choices.
anchoring and adjustment
heuristic
A natural tendency for people to be influenced by an initial anchor point, such that they do not sufficiently move away from that point as new information is provided.
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Chapter Seven Decision Making and Creativity 195
point might be an initial offer price, initial opinion of someone, or initial estimated probability that something will occur. This bias affects the value we assign to choices and their outcomes. For example, suppose you ask someone whether the population of Chile is above or below 50 million, then you ask that person to estimate Chile’s population. Next, you ask a second person whether the population of Chile is above or below 10 million, then you ask him or her to estimate that country’s actual popu- lation. If these two people don’t actually know Chile’s population, chances are that the first person will give a much higher population estimate than will the second person. The initial anchor point (50 million vs. 10 million) biases their estimate.
• Availability heuristic. The availability heuristic is the tendency to estimate the probability of something occurring by how easily we can recall those events. Unfor- tunately, how easily we recall something is due to more than just its frequency (probability).28 For instance, we easily remember emotional events (such as earth- quakes and shark attacks), so we overestimate how often these traumatic events occur. We also have an easier time recalling recent events. If the media report several incidents of air pollution, we likely give more pessimistic estimates of air quality generally than if there have been no recent reports.
• Representativeness heuristic. This heuristic states that we pay more attention to whether something resembles (is representative of ) something else than to more precise statistics about its probability.29 Suppose that one-fifth of the students in your class are in engineering and the others are business majors. Statistically, there is a 20 percent chance that any individual in that class is an engineering student. Yet, if one student looks and acts like a stereotype of an engineer, we tend to believe the person is an engineer even though there is much stronger and more reliable statistical evidence that he or she is a business major. Another form of the representativeness heuristic, known as the clustering illusion, is the tendency to see patterns from a small sample of events when those events are, in fact, random. For example, most players and coaches believe that players are more likely to have a successful shot on the net when their previous two or three shots have been successful. The representativeness heuristic is at work here because players and coaches believe these sequences are causally con- nected (representative) when, in reality, they are more likely random events.
PROBLEMS WITH MAXIMIZATION One of the main assumptions of the rational choice paradigm is that people want to—and are able to—choose the alternative with the highest payoff (i.e., the highest “utility” in subjective expected utility). Yet rather than aiming for maximization, people engage in satisficing— they choose an alternative that is satisfactory or “good enough.”30 People satisfice when they select the first alternative that exceeds a standard of acceptance for their needs and prefer- ences. Satisficing partly occurs because alternatives present themselves over time, not all at once. Consider the process of hiring new employees. It is impossible to choose the best possi- ble job candidate, because people apply over a period of time, and the best candidate might not apply until next month, after earlier candidates have found other jobs. Consequently,
as we mentioned, decision makers rely on sequential evaluation of new alterna- tives against an implicit fa- vorite. This necessarily calls for a satisficing decision rule: Choose the first alter- native that is “good enough.”
A second reason people engage in satisficing rather than maximization is that
availability heuristic
A natural tendency to assign higher probabilities to objects or events that are easier to recall from memory, even though ease of recall is also affected by nonprobability factors (e.g., emotional response, recent events).
representativeness heuristic
A natural tendency to evaluate probabilities of events or objects by the degree to which they resemble (are representative of) other events or objects rather than on objective probability information.
satisficing
Selecting an alternative that is satisfactory or “good enough,” rather than the alternative with the highest value (maximization).
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196 Part Two Individual Behavior and Processes
they lack the capacity and motivation to process the huge volume of information required to identify the best choice. Studies report that people like to have choices, but making deci- sions when there are many alternatives can be cognitively and emotionally draining. Conse- quently, when exposed to many alternatives, decision makers become cognitive misers who engage in satisficing.31 They also respond to a large number of choices by discarding many of them using easily identifiable factors (i.e., color, size) and by evaluating alternatives using only a handful of criteria.
When presented with a large number of choices, people often choose a decision strategy that is even less cognitively challenging than satisficing; they don’t make any decision at all! One study reported that many employees delayed registering for the company’s pension plan when they faced dozens of investment options, even though signing up would give them tax benefits, company contributions to that plan, and long-term financial security. The com- pany pension plan registration rate increased dramatically when employees were given only two or three initial investment options, such as a growth fund, balanced fund, and capital stable investment. The dozens of other investment choices were offered after employees signed up for the basic choices.32
EVALUATING OPPORTUNITIES Opportunities are just as important as problems, but what happens when an opportunity is “discovered” is quite different from the process of problem solving. Decision makers do not evaluate several alternatives when they find an opportunity; after all, the opportunity is the solution, so why look for others?! An opportunity is usually experienced as an exciting and rare revelation, so decision makers tend to have an emotional attachment to the opportu- nity. Unfortunately, this emotional preference motivates decision makers to apply the op- portunity and short-circuit any detailed evaluation of it.34
EMOTIONS AND MAKING CHOICES Herbert Simon and many other experts have found that people do not evaluate alternatives nearly as well as is assumed by the rational choice paradigm. However, they neglected to mention another glaring weakness with rational choice: It completely ignores the effect of
People avoid making choices in decisions that have too many alternatives. In one study, grocery store customers saw one of two jam-tasting booths. Thirty percent of consumers who visited the booth displaying 6 types of jam purchased one of those products. In contrast, only 3 percent of customers who saw the booth displaying 24 types of jam made a purchase. The larger number of choices discouraged them from making any decision. Other studies of decisions about chocolates, term essays, and pension plan investment options revealed similar results.33
LO 7-3
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Chapter Seven Decision Making and Creativity 197
emotions in human decision making. Just as both the rational and emotional brain centers alert us to problems, they also influence our choice of alternatives.35 Emotions affect the evaluation of alternatives in three ways.
Emotions Form Early Preferences The emotional marker process described in previous chapters (Chapters 3–5) shapes our preference for each alternative before we consciously evaluate those alternatives. Our brain very quickly attaches specific emotions to information about each alternative, and our preferred alternative is strongly influenced by those initial emotional markers.36 Of course, logical analysis also influences which al- ternative we choose, but it requires strong logical evidence to change our initial prefer- ences (initial emotional markers). Yet even logical analysis depends on emotions to sway our decision. Specifically, neuroscientific evidence says that information produced from logical analysis is tagged with emotional markers that then motivate us to choose or avoid a particular alternative. Ultimately, emotions, not rational logic, energize us to make the preferred choice. In fact, people with damaged emotional brain centers have difficulty making choices.
Emotions Change the Decision Evaluation Process Moods and specific emotions influence the process of evaluating alternatives.37 For instance, we pay more atten- tion to details when in a negative mood, possibly because a negative mood signals that there is something wrong that requires attention. When in a positive mood, on the other hand, we pay less attention to details and rely on a more programmed decision routine. This phenom- enon explains why executive teams in successful companies are often less vigilant about competitors and other environmental threats.38 Research also suggests that decision makers rely on stereotypes and other shortcuts to speed up the choice process when they experience anger. Anger also makes them more optimistic about the success of risky alternatives, whereas the emotion of fear tends to make them less optimistic. Overall, emotions shape how we evaluate information, not just which choice we select.
Emotions Serve as Information When We Evaluate Alternatives The third way that emotions influence the evaluation of alternatives is through a process called “emotions as information.” Marketing experts have found that we listen in on our emotions to gain guidance when making choices.39 This process is similar to having a temporary im- provement in emotional intelligence. Most emotional experiences remain below the level of conscious awareness, but people actively try to be more sensitive to these subtle emotions when making a decision.
When buying a new car, for example, you not only logically evaluate each vehicle’s fea- tures; you also try to gauge your emotions when visualizing what it would be like to own each of the cars on your list of choices. Even if you have solid information about the quality of each vehicle on key features (e.g., purchase price, fuel efficiency, maintenance costs, resale value), you are swayed by your emotional reaction and actively try to sense that emotional response when thinking about it. Some people pay more attention to these gut feelings, and personality tests such as the Myers-Briggs Type Indicator (see Chapter 2) identify individu- als who listen in on their emotions more than others.40 But everyone consciously pays atten- tion to their emotions to some degree when choosing alternatives. This phenomenon ties directly into our next topic, intuition.
What is your preferred decision-making style? Visit connect. mcgrawhill.com to assess your preference for logical or intuitive decision making, and to assist your learning about these concepts.
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198 Part Two Individual Behavior and Processes
INTUITION AND MAKING CHOICES Do you have a gut instinct or feeling inside when something isn’t quite right? Or perhaps a different emotional experience occurs when you sense an opportunity in front of your eyes? These emotional experiences potentially (but not necessarily) indicate your intuition—the ability to know when a problem or opportunity exists and to select the best course of action without conscious reasoning.41 Intuition is both an emotional experience and a rapid, non- conscious analytic process. As mentioned in the previous section, the gut feelings we expe- rience are emotional signals that have enough intensity to make us consciously aware of them. These signals warn us of impending danger or motivate us to take advantage of an opportunity. Some intuition also directs us to preferred choices relative to other alterna- tives in the situation.
All gut feelings are emotional signals, but not all emotional signals are intuition. The main distinction is that intuition involves rapidly comparing our observations with deeply held patterns learned through experience.42 These “templates of the mind” represent tacit knowledge that has been implicitly acquired over time. They are mental models that help us understand whether the current situation is good or bad, depending on how well that situa- tion fits our mental model. When a template fits or doesn’t fit the current situation, emo- tions are produced that motivate us to act. Studies have found that chess masters experience emotional signals when they see an opportunity through quick observation of a chessboard. They can’t immediately analyze why this opportunity exists, but they can do so when given time to think about the situation. Their intuition signals the opportunity long before this rational analysis takes place.
As mentioned, some emotional signals are not intuition, so gut feelings shouldn’t always guide our decisions. The problem is that emotional responses are not always based on well- grounded mental models. Instead, we sometimes compare the current situation to more re- mote templates, which may or may not be relevant. A new employee might feel confident about relations with a supplier, whereas an experienced employee senses potential problems. The difference is that the new employee relies on templates from other experiences or indus- tries that might not work well in this situation. Thus, the extent to which our gut feelings in a situation represent intuition depends on our level of experience in that situation.
So far, we have described intuition as an emotional experience (gut feeling) and a process in which we compare the current situation with well-established templates of the mind. Intuition also relies on action scripts—programmed decision routines that speed up our response to pattern matches or mismatches.43 Action scripts effectively shorten the decision-making process by jumping from problem identification to selection of a solution. In other words, action scripting is a form of programmed decision making. Action scripts are generic, so we need to consciously adapt them to the specific situation.
MAKING CHOICES MORE EFFECTIVELY It is very difficult to get around the human limitations of making choices, but a few strate- gies help minimize these concerns. One important discovery is that decisions tend to have a higher failure rate when leaders are decisive rather than contemplative about the available options. Of course, decisions also can be ineffective when leaders take too long to make a choice, but research indicates that a lack of logical evaluation of alternatives is a greater con- cern. By systematically assessing alternatives against relevant factors, decision makers mini- mize the implicit favorite and satisficing problems that occur when they rely on general subjective judgments. This recommendation does not suggest that we ignore intuition; rather, it implies that we should use it in combination with careful analyses of relevant information.44
A second piece of advice is to remember that decisions are influenced by both rational and emotional processes. With this point in mind, some decision makers deliberately revisit important issues later, so that they look at the information in different moods and have allowed their initial emotions to subside. For example, if you sense that your team is feeling
intuition
The ability to know when a problem or opportunity exists and to select the best course of action without conscious reasoning.
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199
somewhat too self-confident when making an important competitive de- cision, you might decide to have the team members revisit the decision a few days later when they are thinking more critically.
Another strategy is scenario planning, which is a disciplined method for imagining possible futures.45 It typically involves thinking about what
would happen if a significant environmental condition changed and what the organization should do to anticipate and react to such an outcome. Scenario planning is a useful vehicle for choosing the best solutions under possible scenarios long before they occur, because al- ternative courses of action are evaluated without the pressure and emotions that occur during real emergencies.
Implementing Decisions Implementing decisions is often skipped over in most writing about the decision-making process. Yet leading business writers emphasize that execution—translating decisions into action—is one of the most important and challenging tasks in the decision-making process.47 For instance, when Bill Utt became CEO of KBR, a Fortune 300 engineering firm, he and his executive team fairly quickly made three strategic decisions that would improve the company’s future prospects. Implementing those decisions, however, took much longer. “I expected that it would take two years to complete the three challenges,” says Utt. “One thing I have learned over my career is that it is easy to develop a strategy and to find the organization’s deficiencies; however, the hard part is in the implementa- tion and having the focus, determination and stamina to see these successfully through.”48 Implementing decisions is mainly about organizational change, which we discuss in Chapter 15, but also relates to leadership (Chapter 12) and several other topics through- out this book.
Evaluating Decision Outcomes Contrary to the rational choice paradigm, decision makers aren’t completely honest with themselves when evaluating the effectiveness of their decisions. One problem is the confir- mation bias (also known as post-decisional justification in the context of decision evalua- tion), which is an “unwitting selectivity in the acquisition and use of evidence.”49 When evaluating decisions, people with a confirmation bias ignore or downplay the negative out- comes of the selected alternative and overemphasize its positive outcomes. Confirmation bias gives people an excessively optimistic evaluation of their decisions, but only until they receive very clear and undeniable information to the contrary. Unfortunately, it also in- flates the decision maker’s initial evaluation of the decision, so reality often comes as a painful shock when the objective feedback is finally received.
Scenario planning helps decision makers figure out the best solutions to crises before they occur. Whatif AS, a Norwegian company, has created “Whatif,” a board game that applies scenario planning to shipping, IT security, and other industries. Participants first review several dozen scenarios and choose an event with the greatest risk. For example, one scenario in the shipping exercise is a situation where a fire knocks out all engines, resulting in a collision with another vessel. The team then identifies actions to prepare their company or ship for these high-risk scenarios.46
scenario planning
A systematic process of thinking about alternative futures and what the organization should do to anticipate and react to those environments.
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200 Part Two Individual Behavior and Processes
ESCALATION OF COMMITMENT Another reason why decision makers don’t evaluate their decisions very well is escalation of commitment—the tendency to repeat an apparently bad decision or allocate more resources to a failing course of action.50 There are plenty of examples of this decision-making problem. For instance, executives at five health boards across Ireland decided to develop a common payroll system, called PPARS (payroll, payment and related systems), which would cost (in US dollars) $12 million and be completed in three years. Four years later, costs had doubled, even though the system was still far from completion. A few years later, a major consulting firm concluded the PPARS project should continue, but the government needed to invest another $120 million. A dozen years after the project began, PPARS was officially cancelled with a sunk cost exceeding $250 million.51
Why are decision makers led deeper and deeper into failing projects? Several explanations have been identified and discussed over the years, but the four main influences are self- justification effect, self-enhancement effect, prospect theory effect, and sunk costs effect.
Self-Justification Effect People engage in behaviors that convey a positive public image of themselves. In decision making, this self-justification typically involves appearing to be rational and competent. People are therefore motivated to demonstrate that their decisions will be successful, which includes continuing to support those decisions even when there is evidence that they are not having the desired outcomes. In contrast, pulling the plug symbolizes the project’s failure and the decision maker’s incompetence. This self-justification effect is particularly evident when decision makers are personally identified with the project, have staked their reputations to some extent on the project’s success, and have low self-esteem.52
Self-Enhancement Effect People have a natural tendency to want to feel good about themselves—luckier, more competent, and more successful than average— regarding things that are important to them (see Chapter 3).53 This desire for self- enhancement supports a positive self-concept, but it also increases the risk of escalation of commitment. When presented with evidence that a project is in trouble, the self- enhancement process biases our interpretation of the information as a temporary aber- ration from an otherwise positive trend line. And when we eventually realize that the project isn’t going as well as planned, we continue to invest in the project because our probability of rescuing the project is above average. Self-justification and self- enhancement often occur together, but they are different mechanisms. Self-justification is a deliberate attempt to maintain a favorable public image, whereas self-enhancement operates mostly nonconsciously, distorting information so we do not recognize the problem sooner and biasing our probabilities of success so we continue to invest in the losing project.54
Prospect Theory Effect Prospect theory effect is the tendency to experience stron- ger negative emotions when losing something of value than the positive emotions when gaining something of equal value. This prospect theory effect motivates us to avoid losses, which typically occurs by taking the risk of investing more in that losing project. Stopping a project is a certain loss, which is more painful to most people than the uncertainty of success associated with continuing to fund the project. Given the choice, decision makers choose
escalation of commitment, which is the less painful option at the time.55
Sunk Costs Effect Another disincentive to axing a failing project is sunk costs—the value of resources already invested in the decision.56 Rational choice theory states that investing resources should be determined by expected
escalation of commitment
The tendency to repeat an apparently bad decision or allocate more resources to a failing course of action.
prospect theory effect
A natural tendency to feel more dissatisfaction from losing a particular amount than satisfaction from gaining an equal amount.
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Chapter Seven Decision Making and Creativity 201
future gains and risk, not the size of earlier resources invested in the project. Yet people in- herently feel motivated to invest more resources in projects that have high sunk costs. A variation of sunk costs is time investment. Time is a resource, so the more time decision makers have devoted to a project, the more motivated they are to continuing investing in that project. Finally, sunk costs can take the form of closing costs, that is, the financial or nonfinancial penalties associated with shutting down a project. As with other forms of sunk costs, the higher the closing costs, the more motivated decision makers are to engage in es- calation of commitment.
Escalation of commitment is usually framed as poor decision making, but some experts argue that throwing more money into a failing project is sometimes a logical attempt to fur- ther understand an ambiguous situation. This strategy is essentially a variation of testing un- known waters. By adding more resources, the decision maker gains new information about the effectiveness of these funds, which provides more feedback about the project’s future success. This strategy is particularly common where the project has high closing costs.57
EVALUATING DECISION OUTCOMES MORE EFFECTIVELY One of the most effective ways to minimize escalation of commitment and confirmation bias is to ensure that the people who made the original decision are not the same people who later evaluate that decision. This separation of roles minimizes the self-justification effect because the person responsible for evaluating the decision is not connected to the original decision. However, the second person might continue to escalate the project if he or she empathizes with the decision maker, has a similar mindset, or has similar attributes, such as age. A second strategy is to publicly establish a preset level at which the decision will be abandoned or re-evaluated. This is similar to a stop-loss order in the stock market, whereby the stock is sold if it falls below a certain price. The problem with this solution is that conditions are often so complex that it is difficult to identify an appropriate point to abandon a project.58
A third strategy is to find a source of systematic and clear feedback.59 At some point, even the strongest escalation and confirmation bias effects deflate when the evidence highlights the project’s failings. A fourth strategy to improve the decision evaluation process is to in- volve several people in the evaluation. Coworkers continuously monitor each other and might notice problems sooner than someone working alone on the project.
Creativity The entire decision-making process described over the preceding pages depends on creativity—the development of original ideas that make a socially recognized contribu- tion.60 Creativity is at work when imagining opportunities, such as how a company’s expertise might be redirected to untapped markets. Creativity is present when developing alternatives, such as figuring out new places to look for existing solutions or working out the design of a custom-made solution. Creativity also helps us choose alternatives because we need to visualize the future in different ways and figure out how each choice might be useful or a liability in those scenarios. In short, creativity is an essential component of decision making, as well as a powerful resource for a corporate competitive advantage and individual career development.
The value of creativity in decision making is evident at Google, the Internet search en- gine company. Google’s creative culture includes a natural practice of experimenting with ideas and seeking out different uses of technology. Perhaps most famous is the company’s policy of giving engineers 20 percent of their time to develop projects of their choosing. “Almost everything that is interesting which Google does started out as a 20 percent time idea,” explains a Google executive. Google News and the photos linked to Google Maps were two projects developed from the 20 percent time rule.61
creativity
The development of original ideas that make a socially recognized contribution.
LO 7-4
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202 Part Two Individual Behavior and Processes
Preparation
• Understand the problem or opportunity • Investigate information that seems relevant to the issue
VerificationIncubation
• Period of reflective thought • Nonconscious or low-level awareness, not direct attention to the issue • Active divergent thinking process
• Detailed logical and experimental evaluation of the illuminated idea • Further creative thinking
• Sudden awareness of a novel, although vague and incomplete, idea entering one’s consciousness • May include an initial period of “fringe” awareness
Illumination
Source: Based on G. Wallas, The Art of Thought (London: Jonathan Cape, 1926, Ch. 4).
THE CREATIVE PROCESS How does creativity occur? That question has puzzled experts for hundreds of years and been the fascination of Einstein, Poincaré, and many other scientists who have reflected on the creativity that contributed to their own important discoveries. More than a century ago, German physicist Hermann von Helmholtz gave a public talk in which he described the process that led to his innovations (energy physics, instruments for examining eyes, and many others). A few decades later, London School of Economics professor Graham Wallas built on Helmholtz’s ideas to construct the four-stage model shown in Exhibit 7.3.62 This model remains the most reputable and influential one available, nearly a century later.
The first stage is preparation—the process of investigating the problem or opportunity in many ways. Preparation involves developing a clear understanding of what you are trying to achieve through a novel solution and then actively studying information seemingly related to the topic. It is a process of developing knowledge and possibly skills about the issue or object of attention. The second stage, called incubation, is the period of reflective thought. We put the problem aside, but our mind is still working on it in the background.63 The important condition here is to maintain a low-level awareness by frequently revisiting the problem. Incubation does not mean that you forget about the problem or issue.
Incubation assists divergent thinking—reframing the problem in a unique way and gen- erating different approaches to the issue. This contrasts with convergent thinking—calculating the conventionally accepted “right answer” to a logical problem. Divergent thinking breaks us away from existing mental models so that we can apply concepts or processes from com- pletely different areas of life. The discovery of Velcro is a case in point. In the 1940s, Swiss engineer Georges de Mestral had just returned home from a walk with his dog through the countryside when he noticed that his clothing and the dog’s fur were covered in burrs. While
How well do you engage in divergent thinking? Visit connect. mcgrawhill.com to assess your creative bench strength.
EXHIBIT 7.3 The Creative Process Model
divergent thinking
Reframing a problem in a unique way and generating different approaches to the issue.
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Chapter Seven Decision Making and Creativity 203
struggling to remove the barbed seeds, de Mestral engaged in di- vergent thinking by recognizing that the adhesion used by burrs could be used to attach other things together. It took another dozen years of hard work, but de Mestral eventually perfected the hook-and-loop fastener, which he trademarked as Velcro.64
Illumination (also called insight), the third stage of creativity, refers to the experience of suddenly becoming aware of a unique idea.65 Wallas and others also suggest that this stage begins with a “fringe” awareness before the idea fully enters our conscious- ness. Illumination is often visually depicted as a light bulb, but a better image would be a flash of light or perhaps a briefly flick- ering candle—these bits of inspiration are fleeting and can be quickly lost if not documented. For this reason, many creative people keep a journal or notebook nearby so that they can jot down their ideas before they disappear. Also, flickering ideas don’t keep a particular schedule; they might come to you at any time of day or night.
Illumination presents ideas that are usually vague, roughly drawn, and untested. Verifica- tion therefore provides the essential final stage of creativity, whereby we flesh out the illumi- nated ideas and subject them to detailed logical evaluation and experimentation. This stage often calls for further creativity as the ideas evolve into finished products or services. Thus, though verification is labeled the final stage of creativity, it is really the beginning of a long process of creative decision making toward development of an innovative product or service.
CHARACTERISTICS OF CREATIVE PEOPLE Everyone is creative, but some people have a higher potential for creativity. Four of the main characteristics that give individuals more creative potential are intelligence, persistence, knowledge and experience, and a cluster of personality traits and values representing inde- pendent imagination (see Exhibit 7.4).
• Cognitive and Practical Intelligence. Creative people have above-average intelligence to synthesize information, analyze ideas, and apply their ideas.66 Like the fictional sleuth Sherlock Holmes, creative people recognize the significance of small bits of in- formation and are able to connect them in ways that few others can imagine. They also have practical intelligence—the capacity to evaluate the potential usefulness of their ideas.
• Persistence. Creative people have persistence, which is based on a higher need for achievement, a strong motivation from the task itself, and a moderate or high degree of self-esteem. Persistence is vital because people need this motivation to continue working on and investing in a project in spite of failures and advice from others to quit. In fact, people have a general tendency to dismiss or criticize creative ideas, so creative people need persistence to withstand these negative social forces.67
• Knowledge and Experience. Creative people require a foundation of knowledge and experience to discover or acquire new knowledge.68 However, this expertise is a double- edged sword. As people acquire knowledge and experience about a specific topic, their mental models tend to become more rigid. They are less adaptable to new
Credit: US Banker, 2010. Reprinted with permission of Kevin Pope.
“It’s a new financial world and this bank needs to think outside the box, so, anybody got any ideas . . . any ideas at all?”
Do you have a creative personality? Visit connect.mcgrawhill. com to assess the extent to which you have a disposition for creative thinking.
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204 Part Two Individual Behavior and Processes
Independent Imagination
Characteristics of Creative People
• High openness to experience
• Moderately low need for affiliation
• Strong self-direction value
• Strong stimulation value
Knowledge and Experience
• Prerequisite knowledge and experience
• Not locked into a fixed knowledge mindset
Cognitive and Practical Intelligence
Persistence
• High need for achievement
• Strong task motivation
• Moderately high self-esteem and optimism
• Ability to synthesize, analyze, and apply ideas
• Ability to evaluate potential usefulness of ideas
EXHIBIT 7.4
Characteristics of Creative People
information or rules about that knowledge domain. Some writers suggest that expertise also increases “mindless be- havior” by reducing the tendency to question why things happen.69 To overcome the limitations of expertise, some corporate leaders like to hire people from other industries and areas of expertise. For instance, when Geoffrey Ballard, founder of Ballard Power Systems, hired a chemist to develop a better battery, the chemist protested that he didn’t know anything about batteries. Ballard replied: “That’s fine. I don’t want someone who knows batteries. They know what won’t work.”70
• Independent Imagination. Creative people possess a cluster of personality traits and values that support an independent imagination: high openness to experience, moderately low need for affiliation, and strong values around self-direction and stimulation.71 Openness to experience is a Big Five personality dimension representing the extent to which a person is imaginative, curious, sensitive, open-minded, and original (see Chapter 2). Creative people have a moderately low need for affiliation, so they are less embarrassed when making mistakes. Self-direction includes the values of cre- ativity and independent thought; stimulation includes the values of excitement and challenge. Together, these values form openness to change—representing the motivation to pursue innovative ways (see Chapter 2).
When it comes to creative thinking, Alex Beim sees the light. The founder and chief creative technologist of Tangible Interaction Design in Vancouver, Canada, designed the digital graffiti walls at a Chanel outlet in New York City and Converse Shoes in Amsterdam, as well as the color-changing illuminated lightweight orbs (called zygotes) at the Vancouver Olympics. “I get ideas all the time for designs I want to create,” says Beim, who now employs a team of people. “I love researching the idea, seeing it come to life and watching the happiness it brings to people.”72
Visit connect.mcgrawhill.com for activities and test questions to help you learn about creativity in organizational settings.
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Chapter Seven Decision Making and Creativity 205
ORGANIZATIONAL CONDITIONS SUPPORTING CREATIVITY Intelligence, persistence, expertise, and independent imagination represent a person’s cre- ative potential, but the extent to which these characteristics produce more creative output depends on how well the work environment supports the creative process.73 Several job and workplace characteristics have been identified in the literature, and different combinations of situations can equally support creativity; there isn’t one best work environment.74
One of the most important conditions that supports creative practice is that the organi- zation has a learning orientation; that is, leaders recognize that employees make reasonable mistakes as part of the creative process. “Creativity comes from failure,” says a senior execu- tive at Samsung Electronics. “We should reform our corporate culture to forgive failure if workers did their best.”75 Motivation from the job itself is another important condition for creativity.76 Employees tend to be more creative when they believe their work benefits the organization and/or larger society (i.e., task significance) and when they have the freedom to pursue novel ideas without bureaucratic delays (i.e., autonomy). Creativity is about chang- ing things, and change is possible only when employees have the authority to experiment. More generally, jobs encourage creativity when they are challenging and aligned with the employee’s competencies.
Along with supporting a learning orientation and intrinsically motivating jobs, companies foster creativity through open communication and sufficient resources. They also provide a comfortable degree of job security, which explains why creativity suffers during times of down- sizing and corporate restructuring.77 Some companies also support creativity by designing nontraditional workspaces, such as unique building design or unconventional office areas.78 Google is one example. The Internet innovator has funky offices in several countries that in- clude hammocks, gondola- and hive-shaped privacy spaces, slides, and brightly painted walls.
To some degree, creativity also improves with support from leaders and coworkers. One study reported that effective product champions provide enthusiastic support for new ideas. Other studies suggest that coworker support can improve creativity in some situations, whereas competition among coworkers improves creativity in other situations.79 Similarly, it isn’t clear how much pressure should be exerted on employees to produce creative ideas. Extreme time pressures are well-known creativity inhibitors, but lack of pressure doesn’t seem to produce the highest creativity either.
ACTIVITIES THAT ENCOURAGE CREATIVITY Hiring people with strong creative po- tential and providing a work environ- ment that supports creativity are two cornerstones of a creative workplace. The third cornerstone consists of vari- ous activities that help employees think more creatively. One set of activities involves redefining the problem. Em- ployees might be encouraged to revisit old projects that have been set aside. After a few months of neglect, these projects might be seen in new ways.81 Another strategy involves asking peo- ple unfamiliar with the issue (prefera- bly with different expertise) to explore the problem with you. You would state the objectives and give some facts and then let the other person ask questions
85% of 1,461 American managers and consultants polled say that creativity has had a mild or strong positive effect on their career advancement.
66% of 1,461 American managers and consultants polled believe their organization’s management “to some degree” or “definitely” places a premium on people who are creative.
57% of 1,966 American employees say that innovation/creativity/out-of-the-box thinking will prove to be the most useful over the next year.41%
of 251,507 U.S. Federal Government employees surveyed agree or strongly agree that creativity and innovation are rewarded in their organization.
60% of 600 senior global HR leaders polled identify creativity as one of the most important leadership qualities over the next five years (top choice, followed by integrity).
The Creativity Advantage80
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206 Part Two Individual Behavior and Processes
to understand the situation. By verbalizing the problem, listening to questions, and hearing what others think, you are more likely to form new perspectives on the issue.82
A second set of creativity activities, known as associative play, attempts to bring out creativity by literally engaging in playful activities.83 For example, British media giant OMD sends employees to two-day retreats in the countryside, where they play grapefruit croquet, chant like medieval monks, and pretend to be dog collars. “Being creative is a bit like an emotion; we need to be stimulated,” explains Harriet Frost, one of OMD’s specialists in building creativity. “The same is true for our imagination and its ability to come up with new ideas. You can’t just sit in a room and devise hundreds of ideas.”84 Another associative play activity, called morphological analysis, involves listing different dimensions of a system and the elements of each dimension and then looking at each combination. This encourages people to carefully examine combinations that initially seem nonsensical.
A third set of activities that promote creative thinking falls under the category of cross- pollination.85 Cross-pollination occurs when people from different areas of the organization exchange ideas or when new people are brought into an existing team. Mother, the London-based creative agency, has unusual policies and working conditions that apply this creative process. The company’s 100 or so employees perform their daily work around one monster-size table—an 8-foot-wide reinforced-concrete slab that extends 300 feet like a skateboard ramp around the entire floor. Every three weeks, employees are asked to relocate their laptop, portable telephone, and trolley to another area around the table. Why the musical-chairs exercise? “It encourages cross-pollination of ideas,” explains Stef Calcraft, one of Mother’s founding partners. “You have people working on the same problem from differ- ent perspectives. It makes problem-solving much more organic.”86
Cross-pollination highlights the fact that creativity rarely occurs alone. Some creative people may be individualistic, but most creative ideas are generated through teams and in- formal social interaction. “This whole thing about the solitary tortured artist is nonsense I think,” says John Collee, the screenwriter who penned such films as Happy Feet and Master and Commander. “All the great creative people I know have become great precisely because they know how to get along with people and swim around in the communal unconscious.”87 This notion of improving creativity through social interaction leads us to the final section of this chapter: employee involvement in decision making.
Employee Involvement in Decision Making Nishith Desai Associates (NDA) isn’t your typical law firm. About 60 percent of decisions at the 100-member Mumbai, India–based organization occur through consensus. Another 25 percent are reached through majority vote of the partners, and the remainder are deter- mined by the executive committee or the CEO. The law firm also has representative com- mittees. The compensation committee, for example, consists of staff voted into the position and who have three or more years of professional experience. Overall, NDA strives to be- come a democratic organization by relying on various levels and forms of employee involve- ment in decision making.88
Employee involvement (also called participative management) refers to the degree to which employees influence how their work is organized and carried out.94 Employee in- volvement has become a natural process in every organization, but the level of involvement varies with the situation. In some organizations, such as NDA, almost everyone has a high degree of involvement in some corporate-wide decisions during a given year, whereas other organizations might give employees only low levels of involvement.95
A low level of involvement occurs where employees are individually asked for specific information but the problem is not described to them. Somewhat higher involvement occurs where the problem is described and employees are asked individually or collec- tively for information relating to that problem. Moving further up the involvement scale,
LO 7-5
employee involvement
The degree to which employees influence how their work is organized and carried out.
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Chapter Seven Decision Making and Creativity 207
the problem is described to employees, who are collectively given responsibility for developing recommendations. However, the decision maker is not bound to accept those recommendations. At the highest level of involvement, the entire decision-making process is handed over to employees. They identify the problem, discover alternative solutions, choose the best alternative, and implement that choice. The original decision maker serves only as a facilitator to guide the team’s decision process and keep everyone on track.
debating point SHOULD ORGANIZATIONS PRACTICE DEMOCRACY?
Most organizational experts recommend some degree of em- ployee involvement, but a few go further by proposing that organi- zations should operate like democracies rather than hierarchical fiefdoms. Organizational democracy consists of the highest form of involvement, whereby employees have real institutionalized control—either directly or through representation—over organi- zational decisions. In addition, no one in a democratic enterprise holds higher authority, except where such power is explicitly granted by the others (such as through employee election of the company’s leaders). Democracy also gives all organizational members protection against arbitrary or unjust decisions (such as protection against being fired without cause).89
Some readers might think workplace democracy is an ex- treme way to run an organization, but advocates point out that it is the principle on which many societies have operated for centu- ries and most others aspire. Democratic governance has been established in several high-profile and successful companies, such as Semco SA and W. L. Gore & Associates, as well as many employee-owned firms and worker cooperatives. Legislation in several countries (particularly in continental Europe) requires companies to give employees control over some organizational decisions through works councils or board membership.90
Advocates point out that as a form of participation, workplace democracy can improve the quality of organizational decisions and employee commitment to those decisions. Indeed, democracy inherently advocates shared leadership (where everyone should be a leader in various ways), which is increasingly recommended for improved decision making and organizational effectiveness. Democratic enterprises might also be more flexible and innova- tive. Rather than obediently follow management’s standard operat- ing procedures, employees in democratic organizations have the opportunity—and likely the expectation—to adapt and experiment with new work practices as circumstances change. This form of organization also encourages more organizational learning.91
A final argument is that the democratic enterprise is ethically superior to the traditional hierarchical organization.92 It respects
individual rights and dignity, more fully satisfies the standards of ethical conduct, and is more likely than traditional management to adopt the multiple stakeholder approach expected by society. Indeed, some European governments have debated the notion that organizational democracy is a potentially effective way to minimize corporate wrongdoing because it actively monitors top decision makers and continually holds them accountable for their actions. The democratic enterprise model has a number of vocal ad- vocates, but few practitioners. There is somewhat more em- ployee involvement today than a few decades ago, but still far from the democratic ideal. Most firms operate with the traditional model that management retains control and employees have few rights. There may be reasons for this intransigence. One argu- ment against organizational democracy is that employees have a contractual rather than ownership relationship with the organi- zation. Legally (and possibly morally) they have no right to as- sume citizenship rights or control over the business. A second consideration is that employees might emphasize their own in- terests to the detriment of other stakeholders. In contrast, tradi- tional organizations give management an explicit obligation to serve multiple stakeholders to ensure the organization’s survival and success. Another concern is that workplace democracy might dilute accountability. Although moderate levels of employee involve- ment can improve decision-making quality and commitment, there is a real risk that no one will take responsibility for decisions when everyone has a say in them. In addition, democracy often results in slower decision making, which could lead to a lethargic corporate response to changes in the external environment. Fi- nally, the democratic enterprise model presumes that employees want to control their organizations, but some research suggests that employees prefer a more moderate level of workplace involvement. For this reason (and others noted above), even employee-owned companies often maintain a more traditional hierarchical worker–management relationship.93
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208 Part Two Individual Behavior and Processes
BENEFITS OF EMPLOYEE INVOLVEMENT For the past half century, organizational behavior experts have advised that employee involve- ment potentially improves decision-making quality and commitment.96 However, a recent global survey suggests that this message hasn’t been received by business leaders. Only 39 percent of employees believe senior leaders in their organization do a good job of involving employees in decisions that affect them, and only 38 percent agree that their company acts on those suggestions effectively. Employees believe that their company falls short even on low- level involvement: 42 percent say their organization does a good job of soliciting employees’ opinions or suggestions.97 As Global Connections 7.2 describes, involving employees in com- pany decisions can result in considerable benefits for both the company and employees.
Employee involvement improves decision making in several ways. To begin with, it im- proves the identification of problems and opportunities. Employees are, in many respects, the sensors of the organization’s environment. When the organization’s activities misalign with customer expectations, employees are usually the first to know. Employee involvement provides a conduit for organizational leaders to be alerted to such problems.99 Employee involvement can also potentially improve the number and quality of solutions generated. In a well-managed meeting, team members create synergy by pooling their knowledge to form new alternatives. In other words, several people working together can potentially generate better solutions than the same people working alone.
A third benefit of employee involvement is that, under specific conditions, it improves the evaluation of alternatives. Numerous studies of participative decision making, task con- flict, and team dynamics have found that involvement brings out more diverse perspectives, tests ideas, and provides more valuable knowledge, all of which help the decision maker
Brasilata, the Ideas Company Steel can manufacturing may be a mature industry, but the folks at Brasilata don’t see it that way. The Brazilian company relies on employee involvement to fuel its extraordinary pro- ductivity and innovation. It has won top industry and supplier awards almost every year, including the coveted Sherwin- Williams “Best Packaging Supplier” award. It has also been ranked among the 20 most innovative companies in Brazil, as well as one of the best places to work in that country. At the heart of Brasilata’s business model is the Simplifica- tion Project (Projeto Simplificação), which encourages all 900 employees across the company’s four production facilities to think up as many suggestions as possible. “The Simplification Project is like panning for ideas (incremental innovations), thereby stimulating the internal innovative environment and entrepreneurial spirit,” explains Brasilata CEO, Antonio Carlos Álvares Teixeira, who is also a business professor. Ideas are so important that Brasilata employees are called “inventors,” and everyone signs an “innovation con- tract” that reinforces their commitment to continuous im- provement. After a slow start two decades ago (with only one idea per person each year), the company now receives more than 150,000 ideas each year—an average of more than 150 ideas per employee. Brasilata holds a party every six months, in which all employees are invited to celebrate the teams and individuals with the best ideas. Employees are
also rewarded with bonuses representing 15 percent of net annual profits. Some employee suggestions have sown the seeds of inno- vative products, such as an award-winning paint can that withstands heavy impact when dropped. Other ideas have dramatically improved productivity, some of which made jobs redundant. But employees aren’t worried about losing their jobs because Brasilata has been able to maintain a no-layoff policy even during the worst downturns.98
global connections 7.2
Brasilata has become one of the most innovative and productive manufacturing businesses in Brazil by involving employees in company decisions.
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Chapter Seven Decision Making and Creativity 209
select the best alternative.100 A mathematical theorem introduced in 1785 by the Marquis de Condorcet states that the alternative selected by the team’s majority is more likely to be correct than is the alternative selected by any team member individually.101
Along with improving decision quality, involvement tends to strengthen employee commitment to the decision. Rather than viewing themselves as agents of someone else’s decision, those who participate in a decision feel personally responsible for its success. Involvement also has positive effects on employee motivation, satisfaction, and turnover. It increases skill variety, feelings of autonomy, and task identity, all of which increase job enrichment and potentially employee motivation. Participation is also a critical practice in organizational change, because employees are more motivated to implement the decision and less likely to resist changes resulting from the decision.102
Visit connect.mcgrawhill.com for activities and test questions to help you learn about employee involvement.
CONTINGENCIES OF EMPLOYEE INVOLVEMENT If employee involvement is so wonderful, why don’t leaders leave all decisions to employees? The answer is that the optimal level of employee involvement depends on the situation. The employee involvement model shown in Exhibit 7.5 lists four contingencies: decision structure, source of decision knowledge, decision commitment, and risk of conflict in the decision process.103
• Decision structure. At the beginning of this chapter, we learned that some decisions are programmed, whereas others are nonprogrammed. Programmed decisions are less likely to need employee involvement because the solutions are already worked out from past incidents. In other words, the benefits of employee involvement increase with the novelty and complexity of the problem or opportunity.
Employee Involvement
Outcomes of Employee Involvement
Contingencies of Employee Involvement
EXHIBIT 7.5
Model of Employee Involvement in Decision Making
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210 Part Two Individual Behavior and Processes
7-1 Describe the rational choice paradigm in decision making.
Decision making is a conscious process of making choices among one or more alternatives with the intention of moving toward some desired state of affairs. The rational choice para- digm relies on subjective expected utility to identify the best choice. It also follows the logical process of identifying problems and opportunities, choosing the best decision style, developing alternative solutions, choosing the best solution, implementing the selected alternative, and evaluating decision outcomes. 7-2 Explain why people differ from the rational choice
paradigm when identifying problems/opportunities, evaluating/choosing alternatives, and evaluating de- cision outcomes.
Stakeholder framing, perceptual defense, mental models, deci- sive leadership, and solution-oriented focus affect our ability to objectively identify problems and opportunities. We can mini- mize these challenges by being aware of the human limitations and discussing the situation with colleagues. Evaluating and choosing alternatives is often challenging be- cause organizational goals are ambiguous or in conflict, human information processing is incomplete and subjective, and people tend to satisfice rather than maximize. Decision makers also short-circuit the evaluation process when faced with an opportu- nity rather than a problem. People generally make better choices by systematically evaluating alternatives. Scenario planning can
help make future decisions without the pressure and emotions that occur during real emergencies. Confirmation bias and escalation of commitment make it difficult to evaluate decision outcomes accurately. Escalation is mainly caused by the self-justification effect, self-enhancement effect, the prospect theory effect, and sunk costs effect. These problems are minimized by separating decision choosers from decision evaluators, establishing a preset level at which the deci- sion is abandoned or re-evaluated, relying on more systematic and clear feedback about the project’s success, and involving sev- eral people in decision making.
7-3 Discuss the roles of emotions and intuition in deci- sion making.
Emotions shape our preferences for alternatives and the process we follow to evaluate alternatives. We also listen in to our emo- tions for guidance when making decisions. This latter activity relates to intuition—the ability to know when a problem or op- portunity exists and to select the best course of action without conscious reasoning. Intuition is both an emotional experience and a rapid, nonconscious, analytic process that involves pattern matching and action scripts.
7-4 Describe employee characteristics, workplace condi- tions, and specific activities that support creativity.
Creativity is the development of original ideas that make a socially recognized contribution. The four creativity stages are
chapter summary
• Source of decision knowledge. Subordinates should be involved in some level of deci- sion making when the leader lacks sufficient knowledge and subordinates have addi- tional information to improve decision quality. In many cases, employees are closer to customers and production activities, so they often know where the company can save money, improve product or service quality, and realize opportunities. This is particularly true for complex decisions for which employees are more likely to pos- sess relevant information.
• Decision commitment. Participation tends to improve employee commitment to the decision. If employees are unlikely to accept a decision made without their involve- ment, some level of participation is usually necessary.
• Risk of conflict. Two types of conflict undermine the benefits of employee involve- ment. First, if employee goals and norms conflict with the organization’s goals, only a low level of employee involvement is advisable. Second, the degree of involvement depends on whether employees will agree with each other on the preferred solution. If conflict is likely to occur, high involvement (i.e., employees make the decision) would be difficult to achieve.
Employee involvement is an important component of the decision-making process. To make the best decisions, we need to involve people who have the most valuable information and who will increase commitment to implement the decision. Employee involvement is a formative stage of team dynamics, so it carries many of the benefits and challenges of work- ing in teams. The next chapter provides a closer look at team dynamics, including processes for making decisions in teams.
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1. A management consultant is hired by a manufacturing firm to determine the best site for its next production facility. The consultant has had several meetings with the company’s senior executives regarding the factors to consider when making the recommendation. Discuss the decision-making problems that might prevent the consultant from choosing the best site location.
2. You have been asked to personally recommend a new travel agency to handle all airfare, accommodation, and related travel needs for your organization of 500 staff. One of your colleagues, who is responsible for the company’s economic planning, suggests that the best travel agent could be se- lected mathematically by inputting the relevant factors for each agency and the weight (importance) of each factor. What decision-making approach is your colleague recom- mending? Is this recommendation a good idea in this situa- tion? Why or why not?
3. Intuition is both an emotional experience and a noncon- scious analytic process. One problem, however, is that not all emotions signaling that there is a problem or opportunity represent intuition. Explain how we would know if our “gut feelings” are intuition or not, and if not intuition, suggest what might be causing them.
4. A developer received financial backing for a new business financial center along a derelict section of the waterfront, a few miles from the current downtown area of a large European city. The idea was to build several high-rise
structures, attract large businesses to those sites, and have the city extend transportation systems out to the new center. Over the next decade, the developer believed that others would build in the area, thereby attracting the regional or national offices of many financial institutions. Interest from potential business tenants was much lower than ini- tially predicted and the city did not build transportation systems as quickly as expected. Still, the builder proceeded with the original plans. Only after financial support was curtailed did the developer reconsider the project. Using your knowledge of escalation of commitment, discuss three possible reasons why the developer was motivated to continue with the project.
5. Ancient Book Company has a problem with new book proj- ects. Even when others are aware that a book is far behind schedule and may engender little public interest, sponsoring editors are reluctant to terminate contracts with authors whom they have signed. The result is that editors invest more time with these projects than on more fruitful proj- ects. As a form of escalation of commitment, describe two methods that Ancient Book Company can use to minimize this problem.
6. A fresh graduate is offered a job by an employer she admires even before she can start her job search. The student thinks it is an opportunity and jumps to it. Do you think there is an effect of emotions in her decision making?
critical thinking questions
anchoring and adjustment heuristic, p. 194 availability heuristic, p. 195 bounded rationality, p. 193 creativity, p. 201 decision making, p. 188 divergent thinking, p. 202
employee involvement, p. 206 escalation of commitment, p. 200 implicit favorite, p. 194 intuition, p. 198 prospect theory effect, p. 200 rational choice paradigm, p. 188
representativeness heuristic, p. 195 satisficing, p. 195 scenario planning, p. 199 subjective expected utility, p. 189
key terms
preparation, incubation, illumination, and verification. Incu- bation assists divergent thinking, which involves reframing the problem in a unique way and generating different ap- proaches to the issue. Four of the main features of creative people are intelligence, persistence, expertise, and independent imagination. Creativity is also strengthened for everyone when the work environment supports a learning orientation, the job has high intrinsic moti- vation, the organization provides a reasonable level of job secu- rity, and project leaders provide appropriate goals, time pressure, and resources. Three types of activities that encourage creativity are redefining the problem, associative play, and cross-pollination.
7-5 Describe the benefits of employee involvement and identify four contingencies that affect the optimal level of employee involvement.
Employee involvement refers to the degree that employees influ- ence how their work is organized and carried out. The level of participation may range from an employee providing specific information to management without knowing the problem or issue, to complete involvement in all phases of the decision pro- cess. Employee involvement may lead to higher decision quality and commitment, but several contingencies need to be consid- ered, including the decision structure, source of decision knowl- edge, decision commitment, and risk of conflict.
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CASE STUDY: EMPLOYEE INVOLVEMENT CASES Scenario 1: The Productivity Dividend Decision
As head of the transmission/distribution group (TD group) in the city’s water agency (a government corporation), you have been asked to reduce costs over the next year by a minimum of 3 percent without undermining service. Your department em- ploys about 300 people, who are responsible for constructing and maintaining water lines throughout the city. Although you have an engineering background, the work is complex and in- volves several professions and trades. Even the TD group’s first- line supervisors (one or two levels below you in the hierarchy) are not fully knowledgeable of all aspects of the business. You believe that most employees support or at least accept the city’s recent mandate to reduce costs (called the “pro- ductivity dividend initiative”). The city leaders have stated that this initiative will not result in any layoffs this year. How- ever, the labor union representing most nonmanagement staff in the water agency (including most of your employees) is concerned that the productivity dividend initiative will reduce employment numbers over time and increase employee work- loads. Although the TD group is a separate department within the city’s water agency, it affects most other work units in the agency. It is possible, for example, that ideas that reduce costs in the TD group might increase costs elsewhere. The TD group employees may be unaware of or care little about these repercussions, because there is limited interaction with or social bonding by employees across the departments.
Scenario 2: The Sugar Substitute Research
Decision
You are the head of research and development (R&D) for a major beer company. While working on a new beer product, one of the scientists in your unit seems to have tentatively identified a new chemical compound that has few calories but tastes closer to sugar than current sugar substitutes. The com- pany has no foreseeable need for this product, but it could be patented and licensed to manufacturers in the food industry. The sugar-substitute discovery is in its preliminary stages and would require considerable time and resources before it would be commercially viable. This means that it would nec- essarily take some resources away from other projects in the lab. The sugar-substitute project is beyond your technical ex- pertise, but some of the R&D lab researchers are familiar with that field of chemistry. As with most forms of research, it is difficult to determine the amount of research required to
further identify and perfect the sugar substitute. You do not know how much demand is expected for this product. Your department has a decision process for funding projects that are behind schedule. However, there are no rules or prece- dents about funding projects that would be licensed but not used by the organization. The company’s R&D budget is limited, and other scien- tists in your work group have recently complained that they require more resources and financial support to get their projects completed. Some of these R&D projects hold prom- ise for future beer sales. You believe that most researchers in the R&D unit are committed to ensuring that the company’s interests are achieved.
Scenario 3: Coast Guard Cutter Decision
You are the captain of a 200-foot Coast Guard cutter, with a crew of 16, including officers. Your mission is general at-sea search and rescue. At 2:00 a.m. this morning, while en route to your home port after a routine 28-day patrol, you received word from the nearest Coast Guard station that a small plane had crashed 60 miles offshore. You obtained all the available information concerning the location of the crash, informed your crew of the mission, and set a new course at maximum speed for the scene to commence a search for survivors and wreckage. You have now been searching for 20 hours. Your search op- eration has been increasingly impaired by rough seas, and there is evidence of a severe storm building. The atmospherics associ- ated with the deteriorating weather have made communications with the Coast Guard station impossible. A decision must be made shortly about whether to abandon the search and place your vessel on a course that would ride out the storm (thereby protecting the vessel and your crew, but relegating any possible survivors to almost certain death from exposure) or to continue a potentially futile search and the risks it would entail. Before losing communications, you received an update weather advisory concerning the severity and duration of the storm. Although your crew members are extremely conscien- tious about their responsibility, you believe that they would be divided on the decision of leaving or staying.
Scenario 4: The Social Media Policy Decision
The industry initiatives agency is a group of 120 profession- als responsible for marketing your state as a good place for
7. Think of a time when you experienced the creative process. Maybe you woke up with a brilliant (but usually sketchy and incomplete) idea, or you solved a baffling problem while doing something else. Describe this incident to your class and explain how the experience followed the creative process.
8. Two characteristics of creative people are that they have relevant experience and are persistent in their quest. Does this mean that
people with the most experience and the highest need for achievement are the most creative? Explain your answer.
9. Employee involvement applies just as well to the classroom as to the office or factory floor. Explain how student in- volvement in classroom decisions typically made by the instructor alone might improve decision quality. What potential problems may occur in this process?
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TEAM EXERCISE: WHERE IN THE WORLD ARE WE? PURPOSE This exercise is designed to help you under- stand the potential advantages of involving others in deci- sions rather than making decisions alone.
MATERIALS Students require an unmarked copy of the map of the United States with grid marks (Exhibit 2). Stu- dents are not allowed to look at any other maps or use any other materials. The instructor will provide a list of commu- nities located somewhere on Exhibit 2. The instructor will also provide copies of the answer sheet after students have
individually and in teams estimated the locations of communities.
INSTRUCTIONS
Step 1: Write down in Exhibit 1 the list of communities identified by your instructor. Then, working alone, estimate the location in Exhibit 2 of these communities, all of which are in the United States. For example, mark a small “1” in Exhibit 2 on the spot where you believe the first community is located. Mark a small “2” where you think the second
companies to operate their business or open new operations. Although you report to the head of the state’s employment and commerce department, your agency is semi-autonomous in its policies and practices from the parent department. One of your highest priorities is to recruit and retain young, well-educated, high-potential employees for this growing agency. During a recent recruiting drive at universities and polytechnics, some potential applicants candidly stated that the state government seems out of touch with the younger generation, particularly their use of technology. A few observed that your agency’s website doesn’t provide much recruitment information, and they couldn’t find the depart- ment’s Facebook or Twitter sites. These comments led you to think about having a social media policy in the industry initiatives agency, particularly whether or to what degree the agency should allow or possi- bly even encourage its staff to have work-related Facebook sites, personal blogs, and Twitter sites, and to participate in those sites during work hours. You personally know very little about emerging social media, though many of your direct re- ports (functional managers and team leaders) have varying degrees of knowledge about them. A few even have their own personal Facebook sites, and one manager has her own travel blog. Some direct reports are strongly opposed to social media in the workplace, whereas others are likely very sup- portive. However, you believe that all of their views are in the agency’s best interests. This social media policy decision would be within your mandate; unlike most governments, neither the state gov- ernment nor the employment and commerce department has such a policy or restrictions on any policy that is de- signed by your agency. However, a few specific government departments prohibit Facebook and texting activity during work and, due to concerns about breaches of confidential- ity and employer reputation, do not allow employees to mention work-related matters in any social media. Your decision is to develop a policy specifying whether and, if so, to what degree agency staff should be allowed or en- couraged to engage in social network site activity during work hours.
Discussion Questions (for all four scenarios)
1. To what extent should your subordinates be involved in this decision? Select one of the following levels of involvement:
• Decide alone. Use your personal knowledge and in- sight to complete the entire decision process without conferring with anyone else.
• Receive information from individuals. Ask specific indi- viduals for information. They do not make recom- mendations and might not even know what the problem is about.
• Consult with individuals. Describe the problem to se- lected individuals and seek both their information and recommendations. The final decision is made by you, and you may or may not take the advice from others into account.
• Consult with the team. You bring together a team of people (all department staff or a representation of them if the department is large), who are told about the problem and provide their ideas and recommen- dations. You make the final decision, which may or may not reflect the team’s information.
• Facilitate the team’s decision. The entire decision- making process is handed over to a team or committee of subordinates. You serve only as a facilitator to guide the decision process and keep everyone on track. The team identifies the problem, discovers alternative solutions, chooses the best alternative, and implements their choice.
2. What factors led you to choose this level of employee in- volvement rather than the others?
3. What problems might occur if less or more involvement occurred in this case (where possible)?
Sources: The Productivity Dividend Decision and The Social Media Policy Decision: © 2013 Steven L. McShane. The Sugar Substitute Research Deci- sion: © 2002 Steven L. McShane. The Coast Guard cutter case is adapted from V. H. Vroom and A. G. Jago, The New Leadership: Managing Partici- pation in Organizations (Englewood Cliffs, NJ: Prentice Hall, 1988), © 1987 V. H. Vroom and A. G. Jago. Used with permission of the authors.
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community is located, and so on. Please be sure to number each location clearly and with numbers small enough to fit within one grid space. Step 2: The instructor will organize students into approxi- mately equal sized teams (typically five or six people per team). Working with your team members, reach a consensus on the location of each community listed in Exhibit 1. The instructor might provide teams with a separate copy of this map, or each member can identify the team’s numbers using a different colored pen on their individual maps. The team’s decision for each location should occur by consensus, not voting or averaging. Step 3: The instructor will provide or display an answer sheet showing the correct locations of the communities.
Using this answer sheet, students will count the minimum number of grid squares between the location they individu- ally marked and the true location of each community. Write the number of grid squares in the second column of Exhibit 1, then add up the total. Next, count the minimum number of grid squares between the location the team marked and the true location of each community. Write the number of grid squares in the third column of Exhibit 1, then add up the total. Step 4: The instructor will ask for information about the totals, and the class will discuss the implications of these results for employee involvement and decision making.
EXHIBIT 1 List of Selected Communities in the United States of America
INDIVIDUAL DISTANCE IN TEAM DISTANCE IN GRID UNITS FROM THE TRUE GRID UNITS FROM THE NUMBER COMMUNITY LOCATION TRUE LOCATION
© 2002 Steven L. McShane
1
2
3
4
5
6
7
8
Total: Total:
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EXHIBIT 2 Map of the United States of America
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SELF-ASSESSMENT
MEASURING YOUR CREATIVE PERSONALITY PURPOSE This self-assessment is designed to help you measure the extent to which you have a creative personality.
INSTRUCTIONS Listed on the following page is an ad- jective checklist with 30 words that may or may not describe you. Put a mark in the box beside each word that you think accurately describes you. Please do not mark the boxes for
words that do not describe you. When finished, you can score the test using the scoring key in the appendix at the end of the book. This exercise should be completed alone so you can assess yourself without concerns of social compari- son. Class discussion will focus on how this scale might be applied in organizations and on the limitations of measuring creativity in work settings.
CLASS EXERCISE: THE HOPPING ORANGE
CLASS EXERCISE: CREATIVITY BRAINBUSTERS
PURPOSE This exercise is designed to help students un- derstand the dynamics of creativity and team problem solving.
INSTRUCTIONS You will be placed in teams of six stu- dents. One student serves as the official timer for the team and must have a watch, preferably with a stopwatch timer.
PURPOSE This exercise is designed to help students un- derstand the dynamics of creativity and team problem solving.
INSTRUCTIONS (LARGE OR SMALL CLASS) The instructor describes the problem, and students are asked to figure out the solution working alone. When enough time has passed, the instructor may then ask specific students who think they have the solution to describe (or show using pro- jection technology) their answer. The instructor will review the solutions and discuss the implications of this exercise. In particular, be prepared to discuss what you needed to solve these puzzles and what may have prevented you from solving them more quickly 1. Double-circle problem. Draw two circles, one inside the
other, with a single line and with neither circle touching the other (as shown below). In other words, you must draw both of these circles without lifting your pen (or other writing instrument).
The instructor will give each team an orange (or similar ob- ject) with a specific task involving use of the orange. The ob- jective is easily understood and nonthreatening, and it will be described by the instructor at the beginning of the exercise. Each team will have a few opportunities to achieve the objec- tive more efficiently. To maximize the effectiveness of this exercise, no other information is provided here.
2. Nine-dot problem. Below are nine dots. Without lifting your pencil, draw no more than four straight lines that pass through all nine dots.
3. Nine-dot problem revisited. Referring to the nine-dot ex- hibit above, describe how, without lifting your pencil, you could pass a pencil line through all dots with three or fewer straight lines.
4. Word search. In the following line of letters, cross out five letters so that the remaining letters, without altering their sequence, spell a familiar English word.
CFRIVEELATETITEVRSE
5. Burning ropes. You have two pieces of rope of unequal lengths and a box of matches. In spite of their different lengths, each piece of rope takes one hour to burn; however, parts of each rope burn at unequal speeds. For example, the first half of one piece might burn in 10 minutes. Use these materials to accurately determine when 45 minutes has elapsed.
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217
Source: Adapted from and based on information in H. G. Gough and A. B. Heilbrun, Jr., The Adjective Check List Manual (Palo Alto, CA: Consulting Psychologists Press, 1965).
Affected u
Capable u
Cautious u
Clever u
Commonplace u
Confident u
Conservative u
Conventional u
Dissatisfied u
Egotistical u
ADJECTIVE CHECKLIST
Honest u
Humorous u
Individualistic u
Informal u
Insightful u
Intelligent u
Inventive u
Mannerly u
Narrow interests u
Original u
Reflective u
Resourceful u
Self-confident u
Sexy u
Sincere u
Snobbish u
Submissive u
Suspicious u
Unconventional u
Wide interests u
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.
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8 Team Dynamics
le a
rn in
g o
b je
ct iv
e s After reading this chapter, you should be able to:
8-1 Discuss the benefits and limitations of teams, and explain why employees join informal groups.
8-2 Outline the team effectiveness model and discuss how task characteristics, team size, and team composition influence team effectiveness.
8-3 Discuss how the four team processes—team development, norms, cohesion, and trust— influence team effectiveness.
8-4 Discuss the characteristics and factors required for the success of self-directed teams and virtual teams.
8-5 Identify four constraints on team decision making and discuss the advantages and disadvantages of four structures aimed at improving team decision making.
218
c ha pter
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PART 3: TEAM PROCESSES
eamwork is a source of competitive advantage at HFT Investment Management Co. Ltd. “HFT Investment sticks to the principle of ‘value derived from teamwork’ which is based on the complementary
skills and cooperation of its staff,” says the Shanghai, China, investment funds
company, which makes all investment decisions in teams. Nextech Investment Ltd.,
a health care investment firm in Zurich, Switzerland, also believes in the value of
teams: “Our judgment is founded on our team spirit and decisions are taken as
a team.”
Whether managing investment funds or providing financial advice directly to
clients, the financial services industry has shifted away from individual “stars” to
teams. A recent Financial Times study found that more than 80 percent of the
top 400 financial advisor firms in the United States work in teams. On average,
these teams have 11 people, including analysts, sales assistants, and client
relationship managers. According to another recent survey, 79 percent of
retirement plan advisers in the United States take a team-based approach to
serving clients.
The main reason for organizing people into teams is that investing and wealth
management have become complex. “Lots of successful teams have people with
different backgrounds, so they can hit those different areas of client needs,” explains
Scott Magnesen, who leads a team at Morgan Stanley Wealth Management in the
Chicago area. Teams are also necessary to adequately serve the increasing
expectations and active involvement of high-wealth clients.
However, several industry veterans warn that teams also create problems.
“Running a practice by committee does not usually work that well,” warns Fane
Opperman, a managing director at Wells Fargo Advisors in San Jose, California. Peter
Rohr agrees. “I never wanted to drive down the road sharing the steering wheel,”
says the managing director at Merrill Lynch in Philadelphia. Another concern is that
teams require more maintenance and the right chemistry of people to work
effectively. A vice-president at Merrill Lynch acknowledges that partnerships in the
industry fall apart “every day.”
e I p
ss T
219
HFT Investment Management Co. Ltd. believes in the “value derived from teamwork.” The Shanghai-based investment fund company makes all investment decisions in teams.
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220 Part Three Team Processes
Mitchell Wickham, a partner in the dozen-member Wickham Cash Partners team
at Merrill Lynch in Charlotte, North Carolina, recognizes the risks of teamwork but
also says that good relations among team members is the key to their success. “Trust
is, without a doubt, the most important thing,” Wickham explains. “If you trust your
teammate, then everything positive comes as a result.”1
Most investment and financial advisory companies have reorganized employees into teams to serve clients better and make better investment decisions. This trend toward teamwork is, in fact, increasingly common in many industries. More than half of U.S. organizations polled in one survey use teams to a high or very high extent to conduct their day-to-day business. By comparison, only 50 percent of executives a decade ago said their work was done in teams. Two decades ago, only 20 percent of those executives said they worked in teams.2 Teamwork has also become more important in scientific research. A study of almost 20 million research publications reported that the percentage of journal articles written by teams rather than individuals has increased substantially over the past five decades. Team- based articles also prompted a much higher number of subsequent citations, suggesting that journal articles written by teams are superior to articles written by individuals.3
Why are teams becoming so important, and how can organizations strengthen their po- tential for organizational effectiveness? We find the answers to these and other questions in this chapter on team dynamics. This chapter begins by defining teams and examining the reasons why organizations rely on teams and why people join informal groups in organiza- tional settings. A large segment of this chapter examines a model of team effectiveness, which includes team and organizational environment, team design, and the team processes of development, norms, cohesion, and trust. We then turn our attention to two specific types of teams: self-directed teams and virtual teams. The final section of this chapter looks at the challenges and strategies for making better decisions in teams.
Teams and Informal Groups Teams are groups of two or more people who interact and influence one another, are mutually accountable for achieving common goals associated with organizational objectives, and perceive themselves as a social entity within an organization.4 This definition has a few important com- ponents worth repeating. First, all teams exist to fulfill some purpose, such as repairing electric power lines, assembling a product, designing a new social welfare program, or making an im- portant decision. Second, team members are held together by their interdependence and need for collaboration to achieve common goals. All teams require some form of communication so that members can coordinate and share common objectives. Third, team members influence one another, though some members may be more influential than others regarding the team’s goals and activities. Finally, a team exists when its members perceive themselves to be a team.
Exhibit 8.1 summarizes various types of teams in organizations, along with three dis- tinguishing characteristics: permanence, skill differentiation, and authority differentia- tion.5 Team permanence refers to how long that type of team usually exists. Although many employees work in teams that exist indefinitely (e.g., departmental teams), an emerging trend in organizations is the formation of teams that exist very briefly, some- times only for one eight-hour shift.6 For example, action teams often disband after a few days or weeks. The second distinguishing characteristic, skill differentiation, refers to the degree to which individuals bring diverse skills and knowledge to the team. Some advisory teams have high skill differentiation because companies attempt to include representatives from most occupational groups in the organization. In contrast, most func- tional departments consist of employees with very similar skills (e.g., sales department staff tend to have similar skills).
teams
Groups of two or more people who interact and influence one another, are mutually accountable for achieving common goals associated with organizational objectives, and perceive themselves as a social entity within an organization.
LO 8-1
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Chapter Eight Team Dynamics 221
Departmental teams
Production/ service/leadership teams
Self-directed teams
Task force (project) teams
Action teams
Advisory teams
Skunkworks
Virtual teams
Communities of practice
Teams that consist of employees who have similar or complementary skills and are located in the same unit of a functional structure; usually minimal task interdependence because each person works with clients or employees in other departments.
Typically multiskilled (employees have diverse competencies), team members collectively produce a common product/service or make ongoing decisions.
Similar to production/service teams except they (1) are organized around work processes that complete an entire piece of work requiring several interdependent tasks and (2) have substantial autonomy over the execution of those tasks (i.e., they usually control inputs, flow, and outputs with little or no supervision).
Usually multiskilled, temporary teams whose assignment is to solve a problem, realize an opportunity, or design a product or service.
Similar to task forces, these highly skilled teams are formed for a short duration and given consid- erable autonomy to resolve an urgent problem or opportunity, such as solving an emergency or crisis.
Teams that provide recommendations to decision makers; include committees, advisory councils, work councils, and review panels; may be temporary, but often permanent, some with frequent rotation of members.
Multiskilled teams that are usually located away from the organization and are relatively free of its hierarchy; often initiated by an entrepreneurial team leader who borrows people and resources (bootlegging) to design a product or service.
Teams whose members operate across space, time, and organizational boundaries and are linked through information technologies to achieve organizational tasks; may be a temporary task force or permanent service team.
Teams (but often informal groups) bound together by shared expertise and passion for a particular activity or interest; main purpose is to share infor- mation; often rely on information technologies as the main source of interaction.
High
Medium
Low
Medium
Low
Medium
Medium
Medium
Low
Low to medium
Medium to high
Medium to high
Medium
Medium
Medium to high
Medium to high
Medium to high
Low to medium
High
High
High
Low
Low
Low to medium
Medium
Varies
Medium
SKILL AUTHORITY TEAM TYPE DESCRIPTION PERMANENCE DIFFERENTIATION DIFFERENTIATION
EXHIBIT 8.1 Types of Teams in Organizations
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222 Part Three Team Processes
Authority differentiation, the third distinguishing characteristic of teams, refers to the degree that decision-making responsibility is distributed throughout the team (low differenti- ation) or is vested in one or a few members of the team. Departmental teams tend to have high authority differentiation because they typically have a formal manager, whereas self-directed teams have low authority differentiation because the entire team makes key decisions. The team leader, if there is one, does not have final decision-making authority.
INFORMAL GROUPS This chapter mostly focuses on formal teams, but employees also belong to informal groups. All teams are groups, but many groups do not satisfy our definition of teams. Groups in- clude people assembled together, whether or not they have any interdependence or organi- zationally focused objective. The friends you meet for lunch are an informal group, but they wouldn’t be called a team because they have little or no interdependence (each person could just as easily eat lunch alone) and no organizationally mandated purpose. Instead, they exist primarily for the benefit of their members. Although the terms are used interchangeably, teams has largely replaced groups in the language of business when referring to employees who work together to complete organizational tasks.7
Why do informal groups exist? One reason is that human beings are social animals. Our drive to bond is hardwired through evolutionary development, creating a need to belong to informal groups.8 This is evident by the fact that people invest considerable time and effort forming and maintaining social relationships without any special circumstances or ulterior motives. A second reason why people join informal groups is provided by social identity the- ory, which states that individuals define themselves by their group affiliations (see Chapter 3). Thus, we join groups—particularly those that are viewed favorably by others and that have values similar to our own—because they shape and reinforce our self-concept.9
A third reason why informal groups exist is that they accomplish personal objectives that can- not be achieved by individuals working alone. For example, employees will sometimes congregate to oppose organizational changes because this collective effort has more power than individuals who try to bring about change alone. These informal groups, called coalitions, are discussed in Chapter 10. A fourth explanation for informal groups is that we are comforted by the mere presence of other people and are therefore motivated to be near them in stressful situations. When in danger, people congregate near each other, even though doing so serves no protective purpose. Similarly, employees tend to mingle more often after hearing rumors that the company might be acquired by a competitor. As Chapter 4 explained, this social support minimizes stress by providing emotional and/or informational resources to buffer the stress experience.10
Informal Groups and Organizational Outcomes Informal groups are not cre- ated to serve organizational objectives. Nevertheless, they have a profound influence on or- ganizations and employees. Informal groups potentially minimize employee stress because, as mentioned, group members provide emotional and informational social support. This stress-reducing capability of informal groups improves employee well-being, thereby im- proving organizational effectiveness. Informal groups are also the backbone of social net- works, which are important sources of trust building, information sharing, power, influence, and employee well-being in the workplace.11 Chapter 9 describes the growing significance of social networking sites similar to Facebook and LinkedIn to encourage the formation of in- formal groups and associated communication. Chapter 10 explains that social networks are a source of influence in organizational settings. Employees with strong informal networks tend to have more power and influence, because they receive better information and prefer- ential treatment from others, and their talent is more visible to key decision makers.
Visit connect.mcgrawhill.com for activities and test questions to help you learn about the advantages and challenges of teams, as well as about types of teams.
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Chapter Eight Team Dynamics 223
Advantages and Disadvantages of Teams Teams are the foundation on which Ergon Energy does business. The electricity distribution company for regional Queensland, Australia, organizes its employees around teams and re- wards them for team safety and performance. Teamwork is also one of Ergon’s six core val- ues. “Teamwork is a way of life, and it’s something you can feel from your first day on the job,” says Ergon’s careers website.12
Why are teams “a real key to our success” at Ergon Energy and so many other companies around the world? The answer to this question has a long history.13 Early research on British coal mining in the 1940s, the Japanese economic miracle of the 1970s, and a huge number of investigations since then have revealed that under the right conditions, teams make better decisions, develop better products and services, and create a more engaged workforce than do employees working alone.14 Similarly, team members can quickly share information and coordinate tasks, whereas these processes are slower and prone to more errors in traditional departments led by supervisors. Teams typically provide superior customer service because they provide more breadth of knowledge and expertise to customers than individual “stars” can offer.
In many situations, people are potentially more motivated when working in teams than when working alone.15 One reason for this motivation is that, as we mentioned a few para- graphs ago, employees have a drive to bond and are motivated to fulfill the goals of groups to which they belong. This motivation is stronger when the team is part of the employee’s social identity.
Second, people are more motivated in teams because they are accountable to fellow team members, who monitor performance more closely than a traditional supervisor. This is par- ticularly true when the team’s performance depends on the worst performer, such as on an assembly line, where how fast the product is assembled depends on the speed of the slowest employee. Third, in some circumstances, performance improves when employees work near others, because coworkers become benchmarks of comparison. Employees are also moti- vated to work harder because of apprehension that their performance will be compared against others’ performance.
Wawa has a strong team-oriented culture, which is apparent in its values, work structure, and everyday language among staff. Even the Pennsylvania-based convenience store chain’s iconic Canada Goose symbolizes teamwork. “Just like a majestic flock of Canada geese flying synchronously in ‘V’ formation, Wawa employs the principles of teamwork, group consensus and encouragement in the company,” the company explains. (Wawa is also the Ojibwe word for wild goose.) Wawa also selects people who demonstrate a team orientation. “We don’t want individual wins. We want team wins,” says a senior Wawa executive. “That’s our culture, and we look for people who want to fit that culture.”16
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224 Part Three Team Processes
THE CHALLENGES OF TEAMS In spite of their many benefits, teams are not always as effective as individuals working alone.17 The main problem is that teams have additional costs called process losses— resources (including time and energy) expended toward team development and mainte- nance rather than the task.18 Team members need time and effort to resolve their disagreements, develop mutual understanding of their goals, determine the best strategy for accomplishing those goals, negotiate their specific roles, and agree on informal rules of conduct. An employee working alone on a project does not have these disagreements, misunderstandings, divergent viewpoints, or coordination problems with himself or her- self (at least, not nearly as much as with other people). Teams may be necessary when the work is so complex it requires knowledge and skills from several people. But for tasks that can be performed alone, process losses can make teams much less effective than a one-person project.
Process losses are amplified when more people are added or replace others on the team.19 The new team members consume time and effort figuring out how to work well with other team members. Performance also suffers among current team members, because they divert attention to accommodating and integrating the newcomer. Process losses increase even after new members are integrated because the larger team requires more coordination, more time for conflict resolution, and so forth. The software industry even has a name for the problems of adding people to a team: Brooks’s law says that adding more people to a late software project only makes it later! Although these problems are well known, research has found that managers consistently underestimate the process losses caused by adding more people to an existing team.20
Social Loafing The process losses described above are mainly about coordination, but teams also suffer from motivational process losses. The best-known motivational pro- cess loss is social loafing, which occurs when people exert less effort (and usually perform at a lower level) in teams than working alone.21 Social loafing is higher when individual performance is hidden or difficult to distinguish from the performance of others. Individ- ual performance tends to be hidden in very large teams and when the team produces a single output, such as finding a single solution to a customer’s problem. There is less social loafing when each team member’s contribution is more noticeable; this can be achieved by reducing the size of the team, for example, or measuring each team member’s performance. “When the group is smaller, there’s nowhere to hide,” explains Strategic Investments principal David Zebro. “You have to pull your weight.”22
Social loafing is less prevalent when the task is interesting, because individuals are more motivated by the work itself to perform their duties.23 For example, one recent study revealed that student apathy explains some of the social loafing that occurs in college student teams. Social loafing is also less common when the team’s objective is important, possibly because individuals experience more pressure from coworkers to perform well. Finally, social loafing occurs less frequently among members who value team membership and believe in working toward the team’s objectives.
In summary, teams can be very powerful forces for competitive advantage, or they can be much more trouble than they are worth. To understand when teams are better than
individuals working alone, we need to examine more closely the conditions that make teams effective or ineffective. The next few sections of this chapter discuss the model of team effectiveness.
process losses
Resources (including time and energy) expended toward team development and maintenance rather than the task.
Brooks’s law
The principle that adding more people to a late software project only makes it later.
social loafing
The problem that occurs when people exert less effort (and usually perform at a lower level) when working in teams than when working alone.
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Chapter Eight Team Dynamics 225
A Model of Team Effectiveness Why are some teams effective while others fail? To answer this question, we first need to clarify the meaning of team effectiveness. A team is effective when it benefits the organiza- tion and its members, and when it survives long enough to accomplish its mandate.24 First, teams exist to serve some organizational purpose, so effectiveness is partly measured by the achievement of those objectives. Second, a team’s effectiveness relies on the satisfaction and well-being of its members. People join groups to fulfill their personal needs, so effectiveness is partly measured by this need fulfillment. Finally, team effectiveness includes the team’s ability to survive long enough to fulfill its purpose. Very short-lived teams may be an emerg- ing trend in organizations, yet even these “flash teams” could prematurely fall apart, whether literally (people refuse to join or stay with the team) or cognitively (members become cogni- tively and emotionally disengaged from the team).
Researchers have developed several models over the years to identify the features or con- ditions that make some teams more effective than others.25 Exhibit 8.2 integrates the main components of these team effectiveness models. We will closely examine each component over the next several pages. This exhibit is a meta-model, because each component (team development, team cohesion, etc.) includes its own set of theories and models to explain how that component operates.
ORGANIZATIONAL AND TEAM ENVIRONMENT The organizational and team environment represents all conditions beyond the team’s bound- aries that influence its effectiveness. The environment is typically viewed as a resource pool that either supports or inhibits the team’s ability to function and achieve its objectives.26 Team members tend to work together more effectively when they receive some team-based rewards, when the organization’s leadership is supportive of team-oriented work structures (rather than “star” individuals), when the organization’s structure assigns teams to distinctive clusters of work activity, when information systems support team coordination, and when the physical layout of the team’s workspace encourages frequent communication.27
• Accomplish tasks • Satisfy member needs • Maintain team survival
Team Effectiveness
• Team development • Team norms • Team cohesion • Team trust
• Rewards • Communication • Organizational structure • Organizational leadership • Physical space
• Task characteristics • Team size • Team composition
Organizational and Team Environment
Team Design
Team Processes
EXHIBIT 8.2 Team Effectiveness Model
LO 8-2
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226 Part Three Team Processes
Along with being a resource, the environment generates drivers for change within teams. External competition is an environmental condition that affects team dynamics, such as in- creasing the motivation of team members to work together. Another environmental driver would be changing societal expectations, such as higher safety standards, which require teams to alter their norms of behavior. These external forces for change not only motivate teams to redesign themselves but also are the focus of the team’s attention. For instance, teams develop better ways of working together so they can provide better customer service.
Team Design Elements Even when it operates in a team-friendly environment, the team’s effectiveness will fall short of its potential if the task characteristics, team size, and team composition are poorly designed.
TASK CHARACTERISTICS The case study at the beginning of this chapter described how investment and financial services companies increasingly rely on teams rather than individuals. One reason for this shift to team- work is that making investment decisions or serving high-wealth clients has become much more complex. Complex work requires skills and knowledge beyond the competencies of one person. Teams are particularly well suited for complex work that can be divided into more specialized roles, and where the people in those specialized roles require frequent coordination.
Task complexity demands teamwork, but teams also work better when the work is well- structured rather than ambiguous. Assembling automobiles consists of well-structured tasks, whereas a team performing a new medical procedure would have novel and less- structured work activities. The main benefit of well-structured tasks is that it is easier to coordinate the work among several people. Yet compared with individuals working alone, teams are more likely to stumble when faced with ambiguous work activities. Performing a new medical procedure would lack the task structure of assembling cars dozens of times each
PSA Peugeot Citroën, Europe’s second largest automaker, has set up an “obeya room” (Japanese for “big room”) to speed up team decision making. The walls are plastered with graphs and notes so team members can visualize key issues. The obeya room creates a unique team environment that encourages face-to-face interaction to quickly solve critical, focused decisions. At one session, for example, managers figured out how to significantly reduce accidents among temporary workers. “The themes for projects in progress are displayed on the walls, with red when something is wrong,” explains PSA Peugeot Citroën chairman Philippe Varin. “Everyone takes the same problem and tries to fix it.”28
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Chapter Eight Team Dynamics 227
day, for example. Fortunately, teams can perform ambiguous tasks reasonably well when they have well-structured roles. The medical team members have enough role clarity to generally know what to expect of each other—the surgeon, scrub technicians, operating room nurses, anesthesiologist, and others—and how to coordinate most work challenges, even in these unique situations.29
A third task-related influence on team effectiveness is task interdependence—the extent to which team members must share materials, information, or expertise to perform their jobs.30 Apart from complete independence, there are three levels of task interdependence, as illus- trated in Exhibit 8.3. The lowest level of interdependence, called pooled interdependence, occurs when an employee or work unit shares a common resource, such as machinery, administrative support, or a budget, with other employees or work units. This would occur in a team setting in which each member works alone but shares raw materials or machinery to perform her or his otherwise independent tasks. Interdependence is higher under sequential interdependence, in which the output of one person becomes the direct input for another person or unit. Se- quential interdependence occurs when team members are organized in an assembly line.
Reciprocal interdependence, in which work output is exchanged back and forth among individuals, produces the highest degree of interdependence. People who design a new prod- uct or service would typically have reciprocal interdependence because their design decisions affect others involved in the design process. Any decision made by the design engineers would influence the work of the manufacturing engineer and purchasing specialist, and vice versa. Employees with reciprocal interdependence should be organized into teams to facili- tate coordination in their interwoven relationship.
As a rule, the higher the level of task interdependence, the greater the need to organize people into teams rather than have them work alone. A team structure improves interper- sonal communication and thus results in better coordination. High task interdependence also motivates most people to be part of the team. However, the rule that a team should be formed when employees have high interdependence applies when team members have the same task goals, such as serving the same clients or collectively assembling the same product. When team members have different goals (such as serving different clients) but must de- pend on other team members to achieve those unique goals, teamwork might create exces- sive conflict. In these circumstances, the company should try to reduce the level of interdependence or rely on supervision as a buffer or mediator among employees.
Shared resource
Pooled interdependence
Employee Employee Employee
Sequential interdependence
Employee Employee Employee
Reciprocal interdependence
Employee
Employee
Employee
Employee
EXHIBIT 8.3
Levels of Task Interdependence
task interdependence
The extent to which team members must share materials, information, or expertise to perform their jobs.
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228 Part Three Team Processes
TEAM SIZE What is the ideal size for a team? Online retailer Amazon relies on the “two-pizza team” rule, namely, that a team should be small enough to be fed comfortably with two large pizzas. This works out to between 5 and 7 employees. At the other extreme, a few experts suggest that tasks are becoming so complex that many teams need to have more than 100 mem- bers.31 Unfortunately, the former piece of advice (two-pizza teams) is too simplistic, and the latter seems to have lost sight of the meaning and dynamics of real teams.
Generally, teams should be large enough to provide the necessary competencies and perspectives to perform the work, yet small enough to maintain efficient coordination and meaningful involvement of each member.32 “You need to have a balance between having enough people to do all the things that need to be done, while keeping the team small enough so that it is cohesive and can make decisions effectively and speedily,” says Broad- cast Australia CEO Jim Hassell, who has also held executive roles at IBM and NBN Corp.33 Small teams (say, less than a dozen members) operate effectively because they have less process loss. Members of smaller teams also tend to feel more engaged because they have more influence on the group’s norms and goals and feel more responsible for the team’s success and failure. Also, members of smaller teams get to know one another better, which improves mutual trust and perceptions of support, help, and assistance from those team members.34
Should companies have 100-person teams if the task is highly complex? The answer is that a group this large probably isn’t a team, even if management calls it one. A team exists when its members interact and influence one another, are mutually accountable for achieving common goals associated with organizational objectives, and perceive them- selves as a social entity within an organization. It is very difficult for everyone in a 100-person work unit to influence one another and experience enough cohesion to per- ceive themselves as team members. However, such complex tasks can usually be divided into smaller clusters of people.
TEAM COMPOSITION In most workplaces, employees must have more than technical skills; they must also be able and willing to work in a team environment. Some companies go to great lengths to hire peo- ple who possess team competencies. Global Connections 8.1 describes how Menlo Innova- tions in Ann Arbor, Michigan, uses a group process to identify applicants with the best team skills. The most frequently mentioned characteristics or behaviors of effective team members are depicted in the “Five C’s” model illustrated in Exhibit 8.4: cooperating, coordinating, communicating, comforting, and conflict resolving. The first three competencies are mainly (but not entirely) task-related, while the last two primarily assist team maintenance:35
• Cooperating. Effective team members are willing and able to work together rather than alone. This includes sharing resources and being sufficiently adaptive or flexi- ble to accommodate the needs and preferences of other team members, such as re- scheduling use of machinery so that another team member with a tighter deadline can use it.
• Coordinating. Effective team members actively manage the team’s work so that it is performed efficiently and harmoniously. For example, effective team members keep
Are you a team player? Visit connect.mcgrawhill.com to assess your motivation to work in teams, and assist your learning about team competencies.
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Chapter Eight Team Dynamics 229
the team on track and help integrate the work performed by different members. This typically requires that effective team members know the work of other team mem- bers, not just their own.
• Communicating. Effective team members transmit information freely (rather than hoarding), efficiently (using the best channel and language), and respectfully (mini- mizing arousal of negative emotions).37 They also listen actively to coworkers.
• Comforting. Effective team members help coworkers maintain a positive and healthy psychological state. They show empathy, provide psychological comfort, and build coworkers’ feelings of confidence and self-worth.
• Conflict resolving. Conflict is inevitable in social settings, so effective team members have the skills and motivation to resolve disagreements among team members. This requires the effective use of various conflict-handling styles, as well as diagnostic skills to identify and resolve the structural sources of conflict.
Which employees tend to have these team competencies? Top of the list are those with high conscientiousness and extroversion personality traits, as well as with emotional intelli- gence. Furthermore, the old saying “One bad apple spoils the barrel” seems to apply to
Finding Team Players at Menlo Innovations
By any measure, Menlo Innovations is an extreme team-based organization. Most of the 50 employees at the Ann Arbor, Michigan, software company work in pairs throughout the week. In “pair programming,” two employees share one com- puter. One person (called the driver) writes code while the other (called the navigator) offers guidance and proofs the work. The two switch roles throughout the week and have ongoing discussions about where to take the work next. Each Monday, Menlo’s employees not only switch partners but often switch to a different part of the project or to another project altogether. Menlo Innovations’ intensive team-based work process of- ten takes longer but significantly reduces programming errors while supporting employee knowledge and skill development. This work arrangement also requires special team competen- cies, so Menlo Innovations has an “extreme interviewing” pro- cess that, contrary to its name, doesn’t involve any interviewing. Up to two dozen applicants are invited to the company’s offices, where they are paired with another applicant to work on a task similar to a real project at Menlo. Before the activity begins, James Goebel, Menlo Innovation’s chief operating officer and company cofounder, tells applicants: “This is not about getting the right answer. The thing that you will be evaluated on is whether you bring out all the best qualities in your partner.” Teams are given 20 minutes to work on the task while a Menlo employee observes their work and interaction. At the end of that time, applicants are paired with a different partner and work for 20 minutes on another task while being observed by a second employee. A third pairing then occurs. For each activity, observers are looking at how well
applicants work with their partners. “Do you play well with others, do you share, do you smile, are you encouraging?” asks Menlo Innovation CEO and cofounder Richard Sheridan. Menlo Innovations refers to these team competencies as “kindergarten skills,” because they are prevalent in young children. After the applicants have gone home, Menlo employees dis- cuss their observations of the applicants and reach a consen- sus on who should be invited to return for a one-day trial (with pay). During this day, they spend a morning paired with one Menlo employee and an afternoon with another em- ployee. Those who pass the one-day trial are invited to a three-week paid contract before being offered continuous employment.36
global connections 8.1
Menlo Innovations identifies job applicants with the best team skills through a group selection process in which applicants are paired with each other to complete software tasks.
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230 Part Three Team Processes
teams; one team member who lacks these teamwork competencies may undermine the dynamics of the entire team.38
Team Diversity Diversity, another important dimension of team composition, has both positive and negative effects on teams.39 The main advantage of diverse teams is that they make better decisions than do homogeneous teams in some situations. One reason is that people from different backgrounds tend to see a problem or opportunity from different angles. Team members have different mental models, so they are more likely to identify via- ble solutions to difficult problems. A second reason is that diverse team members have a broader pool of technical competencies. The opening case study to this chapter highlighted that investment fund companies such as HFT Investment in Shanghai and Nextech Invest- ment in Zurich rely on teams to make key decisions. These teams consist of people with expertise in diverse areas, such as stocks, bonds, derivatives, cash management, and other asset classes. Some teams also have diverse investment philosophies (fundamentals, techni- cal, momentum, etc.) and expertise across regions of the world.
Along with potentially better decision making, diverse teams provide better representa- tion of the team’s constituents, such as other departments or clients from similarly diverse backgrounds. This representation not only brings different viewpoints to the decision; it also gives stakeholders a belief that they have a voice in the decision process. As we learned in Chapter 5, voice is an important ingredient in procedural justice, so constituents feel the decision is fairer when the decision-making team includes members with similar surface or deep-level diversity.
Against these advantages are a number of challenges created by team diversity. Employees with diverse backgrounds take longer to become a high-performing team, partly because bonding is slower among people who are different, especially when teams have deep-level
Coordinating • Align work with others • Keep team on track
Communicating • Share information freely, efficiently, respectfully • Listen actively
Comforting • Show empathy • Provide psychological comfort • Build confidence
Conflict Resolving • Diagnose conflict sources • Use best conflict- handling style
Cooperating • Share resources • Accommodate others
Team Member Competencies
Sources: Based on information in V. Rousseau, C. Aubé, and A. Savoie, “Teamwork Behaviors: A Review and an Integration of Frameworks,” Small Group Research 37, no. 5 (2006), pp. 540–70; M.L. Loughry, M.W. Ohland, and D.D. Moore, “Development of a Theory-Based Assessment of Team Member Effectiveness,” Educational and Psychological Measurement 67, no. 3 (2007), pp. 505–24.
EXHIBIT 8.4
Five Cs of Team Member Competency
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Chapter Eight Team Dynamics 231
diversity (i.e., different beliefs and values). Diverse teams are susceptible to “fault lines”— hypothetical dividing lines that may split a team into subgroups along gender, ethnic, pro- fessional, or other dimensions.40 These fault lines undermine team effectiveness by reducing the motivation to communicate and coordinate with teammates on the other side of the hypothetical divisions. In contrast, members of teams with minimal diversity experience higher satisfaction, less conflict, and better interpersonal relations. Consequently, homoge- neous teams tend to be more effective on tasks requiring a high degree of cooperation and coordination, such as emergency response teams.
Visit connect.mcgrawhill.com for activities and test questions to help you learn about team development and other team processes.
Team Processes The third set of elements in the team effectiveness model, collectively known as team processes, includes team development, norms, cohesion, and trust. These elements represent characteristics of the team that continuously evolve.
TEAM DEVELOPMENT Team members must resolve several issues and pass through several stages of development before emerging as an effective work unit. They need to get to know and trust each other, understand and agree on their respective roles, discover appropriate and inappropriate
behaviors, and learn how to coordinate. The longer that team members work together, the better they develop common or com- plementary mental models, mutual understanding, and effective performance routines to complete the work.
A popular model that captures many team development activ- ities is shown in Exhibit 8.5.42 The diagram shows teams moving systematically from one stage to the next, while the dashed lines illustrate that teams might fall back to an earlier stage of develop- ment as new members join or other conditions disrupt the team’s maturity. Forming, the first stage of team development, is a period of testing and orientation in which members learn about one an- other and evaluate the benefits and costs of continued member- ship. People tend to be polite, defer to authority, and try to find out what is expected of them and how they will fit into the team. The storming stage is marked by interpersonal conflict as members become more proactive and compete for various team roles. Members try to establish norms of appropriate behavior and per- formance standards.
During the norming stage, the team develops its first real sense of cohesion as roles are established and a consensus forms around group objectives and a common or complementary team-based mental model. By the performing stage, team members have learned to efficiently coordinate and resolve conflicts. In high-performance teams, members are highly cooperative, have a high level of trust in
U.S. Air Force Security Forces Squadrons are deployed for special “outside-the-wire” operations, so their success depends on a high degree of team development. “I have 13 guys under me, and every single day I work with the same 13 guys,” explains squad leader Staff Sgt. Eric Hammons. “They’re going to know that when I go into a room I’m going to the right. And they know that since I’m going right they go left.” These squadrons develop into high-performing teams through ongoing training in life-like situations.41
LO 8-3
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232 Part Three Team Processes
Adjourning
• Task oriented, committed • Efficient coordination • High cooperation and trust • Conflicts resolved quickly
Performing
• Establish roles • Agree on team objectives • Form team mental models • Develop cohesion
Norming
• Interpersonal conflict • Compete for team roles • Influence goals and means • Establish norms
Storming
• Discover expectations • Evaluate value of membership • Defer to existing authority • Test boundaries of behavior
Forming
EXHIBIT 8.5 Stages of Team Development
one another, are committed to group objectives, and identify with the team. Finally, the adjourning stage occurs when the team is about to disband. Team members shift their atten- tion away from task orientation to a relationship focus.
DEVELOPING TEAM IDENTITIES AND MENTAL MODELS Although this model depicts team development fairly well, it is not a perfect representation of the process. For instance, it does not show that some teams remain in a particular stage longer than others and does not explain why teams sometimes regress back to earlier stages of devel- opment. The model also masks two sets of processes that are the essence of team development: developing team identity and developing team mental models and coordinating routines.43
• Developing team identity. Team development is apparent when its members shift from viewing the team as something “out there” to something that is part of themselves. In other words, team development occurs when employees take ownership of the team’s success and make the team part of their social identity.44
• Developing team mental models and coordinating routines. Team development includes developing habitual routines with teammates and forming shared or complementary mental models.45 Team mental models are visual or relational mental images that are shared by team members, such as what good customer service looks like. A recent meta-analysis supports the view that teams are more effective when their members share common mental models of the work.46
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Chapter Eight Team Dynamics 233
Team Roles An important part of the team development process is forming and rein- forcing team roles. A role is a set of behaviors that people are expected to perform because they hold certain positions in a team and organization.47 In a team setting, some roles help the team achieve its goals; other roles maintain relationships within the team. Some team roles are formally assigned to specific people. For example, team leaders are usually expected to initiate discussion, ensure that everyone has an opportunity to present his or her views, and help the team reach agreement on the issues discussed.
Team members are assigned specific roles within their formal job responsibilities. Yet team members also assume informal roles that suit their personality and values as well as the wishes of other team members. These informal roles, which are negotiated throughout the team development process, range from supporting others to initiating new ideas. Informal team roles are shared, but many eventually are associated with one or two people on the team.48
Accelerating Team Development through Team Building Team building consists of formal activities intended to improve the development and functioning of a work team.49 To a large extent, team building attempts to speed up the team development process. This process may be applied to new teams, but it is more commonly introduced for existing teams that have regressed to earlier stages of team development due to membership turnover or loss of focus.
Some team-building interventions are task-focused. They clarify the team’s performance goals, increase the team’s motivation to accomplish these goals, and establish a mechanism for systematic feedback on the team’s goal performance. A second type of team building tries to improve the team’s problem-solving skills. A third category clarifies and reconstructs each member’s perceptions of her or his role, as well as the role expectations that member has of other team members. Role definition–based team building also helps the team develop shared mental models—common internal representations of the external world, such as how to interact with clients, maintain machinery, and engage in meetings. Research studies indicate that team processes and performance depend on how well team members share common or complementary mental models about how they should work together.50 A fourth—and likely the most common—type of team building is aimed at helping team members learn more about one another, build trust in one another, and develop ways to manage conflict within the team. Popular interventions such as wilderness team activities, paintball wars, and obstacle course challenges are typically offered to build trust.
Do team building interventions improve team development and effectiveness? The most effective team building tactics seems to be those in which employees receive training on specific team competencies, such as coordinating, conflict resolving, and communicating.51 However, many team-building activities are less successful.52 One problem is that team building interventions are used as general solutions to general team problems. A better
approach is to begin with a sound diagnosis of the team’s health and then select team-building interventions that address specific weaknesses.53 Another problem is that team building is applied as a one-shot medical inoculation that every team should receive when it is formed. In truth, team building is an ongoing process, not a three-day jump start.54 Finally, we must remember that team building occurs on the job, not just on an obstacle course or in a
What team roles do you prefer? Visit connect.mcgrawhill.com to assess the types of roles you like to be responsible for in teams.
role
A set of behaviors that people are expected to perform because they hold certain positions in a team and organization.
team building
A process that consists of formal activities intended to improve the development and functioning of a work team.
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234 Part Three Team Processes
national park. Organizations should encourage team members to reflect on their work expe- riences and experiment with just-in-time learning for team development.
TEAM NORMS Norms are the informal rules and shared expectations that groups establish to regulate the behavior of their members. Norms apply only to behavior, not to private thoughts or feel- ings. Furthermore, norms exist only for behaviors that are important to the team.55 Norms are enforced in various ways. Coworkers grimace if we are late for a meeting, or they make sarcastic comments if we don’t have our part of the project completed on time. Norms are also directly reinforced through praise from high-status members, more access to valued resources, or other rewards available to the team. But team members often conform to pre- vailing norms without direct reinforcement or punishment, because they identify with the group and want to align their behavior with the team’s expectations. The more closely the person’s social identity is connected to the group, the more the individual is motivated to avoid negative sanctions from that group.56
How Team Norms Develop Norms develop when teams form because people need to anticipate or predict how others will act. Even subtle events during the team’s formation, such as how team members initially greet each other and where they sit in the first few meet- ings, can initiate norms that are later difficult to change. Norms also form as team members discover behaviors that help them function more effectively (such as the need to respond quickly to e-mail).57 In particular, a critical event in the team’s history can trigger formation of a norm or sharpen a previously vague one. A third influence on team norms are the expe- riences and values that members bring to the team. If members of a new team value work–life balance, they will likely develop norms that discourage long hours and work overload.58
Preventing and Changing Dysfunctional Team Norms Team norms often become deeply anchored, so the best way to avoid norms that undermine organizational success or employee well-being is to establish desirable norms when the team is first formed. One way to do this is to clearly state desirable norms when the team is created. Another approach is to select people with appropriate values. If organizational leaders want their teams to have strong safety norms, they should hire people who already value safety and who clearly identify the importance of safety when the team is formed.
These suggestions all refer to new teams, but how can organizational leaders maintain desirable norms in established teams? One solution comes from a study that notes that lead- ers often have the capacity to alter existing norms.59 By speaking up or actively coaching the team, they can often subdue dysfunctional norms while developing useful norms. A second suggestion is to introduce team-based rewards that counter dysfunction norms. However, studies report that employees might continue to adhere to a dysfunctional team norm (such as limiting output), even when this behavior reduces their paycheck. Finally, if dysfunctional norms are deeply ingrained and the previous solutions don’t work, it may be necessary to disband the group and replace it with people who have more favorable norms.
TEAM COHESION Team cohesion refers to the degree of attraction people feel toward the team and their mo- tivation to remain members. It is a characteristic of the team, and includes the extent to
which its members are attracted to the team, are commit- ted to the team’s goals or tasks, and feel a collective sense of team pride.60 Thus, team cohesion is an emotional experi- ence, not just a calculation of whether to stay or leave the team. It exists when team members make the team part of their social identity. Team development tends to improve cohesion because members strengthen their identity to the team during the development process.
norms
The informal rules and shared expectations that groups establish to regulate the behavior of their members.
team cohesion
The degree of attraction people feel toward the team and their motivation to remain members.
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235
The Procurement and Contracts Division (PCD) of Sound Transit, which provides commuter services in and around Seattle, is one of only eight public agencies to receive the Pareto Award of Excellence in Public Procurement. This accomplishment would make any team more cohesive, but the Sound Transit PCD team already felt their bond strengthen over the past couple of years as they worked toward this objective. “Striving to get the Pareto made us a better working team,” says April Alexander, Sound Transit’s Contracts Manager, Materials, Technology and Services. “The best part of the Pareto Award process was watching the team grow and increasing our ability to work together on a daily basis.”61
Influences on Team Cohesion Several factors influence team cohesion, but the six described here seem to be the most important: member similarity, team size, member inter- action, difficult entry, team success, and external competition or challenges. For the most part, these factors reflect an individual’s social identity within the group and beliefs about how team membership will fulfill her or his personal needs.
• Member similarity. Social scientists have long known that people are attracted to others who are similar to them.62 This similarity-attraction effect occurs because we assume that people who look like us and have similar backgrounds are more trustworthy and more likely to accept us. We also expect to have fewer negative experiences, such as conflicts and violations of our expectations and beliefs. Thus, teams have higher cohesion or become cohesive more quickly when members are similar to each other. In contrast, it is more difficult and takes longer for teams with diverse members to become cohesive. This difficulty depends on the form of diver- sity, however. Teams consisting of people from different job groups seem to gel to- gether just as well as teams of people from the same job.63
• Team size. Smaller teams tend to have more cohesion than larger teams because it is easier for a few people to agree on goals and coordinate work activities. However, small teams have less cohesion when they lack enough members to perform the re- quired tasks.
• Member interaction. Teams tend to have more cohesion when team members interact with one another fairly regularly. This occurs when team members perform highly interdependent tasks and work in the same physical area.
• Somewhat difficult entry. Teams tend to have more cohesion when entry to the team is restricted. The more elite the team, the more prestige it confers on its members, and the more they tend to value their membership in the unit. At the same time, research suggests that severe initiations can weaken team cohesion because of the adverse effects of humiliation, even for those who successfully endure the initiation.64
• Team success. Team cohesion increases with the team’s level of success because people are attracted to groups that fulfill their needs and goals.65 Furthermore, individuals are more likely to attach their social identity to successful teams than to those with a string of failures.66
• External competition and challenges. Team cohesion tends to increase when members face external competition or a valued objective that is challenging. This might in- clude a threat from an external competitor or friendly competition from other teams. Employees value their membership on the team because of its ability to overcome the threat or competition and as a form of social support. However, cohesion can dissipate when external threats are severe, because these threats are stressful and cause teams to make less effective decisions.67
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236 Part Three Team Processes
Consequences of Team Cohesion Teams with higher cohesion tend to perform better than those with low cohesion.68 In fact, the team’s existence depends on a minimal level of cohesion, because it motivates team members to remain members and help the team achieve its mutually agreed objectives. Members of high-cohesion teams spend more time together, share information more frequently, and are more satisfied with one another. They provide better social support in stressful situations and work to minimize dysfunctional conflict.69 When conflict does arise, high-cohesion team members tend to resolve their dif- ferences swiftly and effectively.
However, at least two contingencies make the cohesion–performance relationship some- what more complex. First, team cohesion has less effect on team performance when the team has low task interdependence.70 High cohesion motivates employees to coordinate and coop- erate with other team members. But people don’t need to cooperate or coordinate as much when little of their work depends on other team members (low task interdependence), so the motivational effect of high cohesion is less relevant in teams with low interdependence.
Second, the effect of cohesion on team performance depends on whether the team’s norms are compatible with or opposed to the organizational objectives.71 As Exhibit 8.6 illustrates, teams with high cohesion perform better when their norms are aligned with the organiza- tion’s objectives, whereas higher cohesion can potentially reduce team performance when norms are counterproductive. This effect occurs because cohesion motivates employees to perform at a level more consistent with team norms. If a team’s norm tolerates or encourages absenteeism, employees will be more motivated to take unjustified sick leave. If the team’s norm discourages absenteeism, employees are more motivated to avoid taking sick leave.
One last comment about team cohesion and performance: Earlier in this section we said that team performance (success) increases cohesion, whereas we are now saying that team cohesion causes team performance. Both statements are correct, but there is some evidence that team performance has a stronger effect on cohesion than vice versa. In other words, a team’s performance will likely affect its cohesion, whereas a team’s cohesion has less of an effect on its performance.72
Team norms support
company goals
Low Team
cohesion
High
Team norms conflict with
company goals
Moderately high task
performance
Moderately low task
performance
High task performance
Low task performance
EXHIBIT 8.6
Effect of Team Cohesion on Task Performance
How trusting are you? Visit connect.mcgrawhill.com to assess your propensity to trust others.
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Chapter Eight Team Dynamics 237
TEAM TRUST Any relationship—including the relationship among team members—depends on a certain degree of trust. Trust refers to positive expectations one person has toward another person in situations involving risk (see Chapter 4).73 Trust is ultimately perceptual; we trust others on the basis of our beliefs about their ability, integrity, and benevolence. Trust is also an emotional event; we experience positive feelings towards those we trust.74 Trust is built on three founda- tions: calculus, knowledge, and identification (see Exhibit 8.7).75
Calculus-based trust represents a logical calculation that other team members will act ap- propriately because they face sanctions if their actions violate reasonable expectations.76 It offers the lowest potential trust and is easily broken by a violation of expectations. Some scholars suggest that calculus-based trust is not trust at all. Instead, it might be trust in the system rather than in the other person. In any event, calculus-based trust alone cannot sus- tain a team’s relationship, because it relies on deterrence. Knowledge-based trust is based on the predictability of another team member’s behavior. This predictability refers only to “positive expectations,” as the definition of trust states, because you would not trust some- one who tends to engage in harmful or dysfunctional behavior. Knowledge-based trust includes our confidence in the other person’s ability or competence, such as the confidence that exists when we trust a physician.77 Knowledge-based trust offers a higher potential level of trust and is more stable because it develops over time.
Identification-based trust is based on mutual understanding and an emotional bond among team members. It occurs when team members think, feel, and act like one another. High-performance teams exhibit this level of trust because they share the same values and mental models. Identification-based trust is potentially the strongest and most robust of all three types of trust. The individual’s self-concept is based partly on membership in the team, and he or she believes the members’ values highly overlap, so any transgressions by other team members are quickly forgiven. People are more reluctant to acknowledge a violation of this high-level trust because it strikes at the heart of their self-concept.
Dynamics of Team Trust When joining a team, employees typically have a moderate or high level—not a low level—of trust in their new coworkers.78 The main explanation for the initially high trust (called swift trust) in organizational settings is that people usually be- lieve fellow team members are reasonably competent (knowledge-based trust), and they tend to develop some degree of social identity with the team (identification-based trust). Even when working with strangers, most of us display some level of trust, if only because it sup- ports our self-concept of being a good person. However, trust is fragile in new relationships because it is based on assumptions rather than well-established experience. Consequently,
EXHIBIT 8.7
Three Foundations of Trust in Teams
Identification- based trust
High
Type of Trust Description
Low
Potential level of
trust
Knowledge- based trust
• Based on predictability and competence • Fairly robust
• Based on common mental models and values • Increases with person’s social identity with team
Calculus- based trust
• Based on deterrence • Fragile and limited potential because dependent on punishment
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238 Part Three Team Processes
self-directed teams (SDTs)
Cross-functional work groups that are organized around work processes, complete an entire piece of work requiring several interdependent tasks, and have substantial autonomy over the execution of those tasks.
LO 8-4
studies report that trust tends to decrease rather than increase over time. This is unfortunate, because employees become less forgiving and less cooperative toward others as their level of trust decreases, which undermines team and organizational effectiveness.79
The team effectiveness model is a useful template for understanding how teams work— and don’t work—in organizations. With this knowledge in hand, let’s briefly investigate two types of teams that have emerged over the past couple of decades to become important forms of team work in organizations: self-directed teams and virtual teams.80
Self-Directed Teams Self-directed teams (SDTs) are cross-functional groups organized around work processes that complete an entire piece of work requiring several interdependent tasks and that have substantial autonomy over the execution of those tasks.81 This definition captures two dis- tinct features of SDTs. First, these teams complete an entire piece of work requiring several interdependent tasks. This type of work arrangement clusters the team members together while minimizing interdependence and interaction with employees outside the team. The result is a close-knit group of employees who depend on each other to accomplish their individual tasks. Second, SDTs have substantial autonomy over the execution of their tasks. In particular, these teams plan, organize, and control work activities with little or no direct involvement of a higher-status supervisor.
Self-directed teams are found in several industries, ranging from petrochemical plants to aircraft parts manufacturing. Most of the top-rated manufacturing firms in North America apparently rely on SDTs.82 Indeed, self-directed teams have become such a popular way to organize employees in manufacturing, services, and government work that many companies don’t realize they have them. The popularity of SDTs is consistent with research indicating that they potentially increase both productivity and job satisfaction.83 For instance, one study found that car dealership service shops that organize employees into SDTs are signifi- cantly more profitable than shops where employees work without a team structure. Another study reported that both short- and long-term measures of customer satisfaction increased after street cleaners in a German city were organized into SDTs.
Whole Foods Market operates with self-directed teams. Each store has about 10 teams, such as the prepared-foods team, the cashier/front-end team, and the seafood team. Teams are “self-directed” because team members make decisions about their work unit with minimal interference from management. “Each team is . . . responsible for managing its own business,” explains Whole Foods Market cofounder John Mackey. “It gets a profit-and-loss statement; it’s responsible for managing inventory, labor productivity, gross margins; and its members are responsible for many of the product-placement decisions.”84
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Chapter Eight Team Dynamics 239
SUCCESS FACTORS FOR SELF-DIRECTED TEAMS The successful implementation of self-directed teams depends on several factors.85 SDTs should be responsible for an entire work process, such as making an entire product or pro- viding a service. This structure keeps each team sufficiently independent from other teams, yet it demands a relatively high degree of interdependence among employees within the team.86 SDTs should also have sufficient autonomy to organize and coordinate their work. Autonomy allows them to respond more quickly and effectively to client and stakeholder demands. It also motivates team members through feelings of empowerment. Finally, SDTs are more successful when the work site and technology support coordination and commu- nication among team members and increase job enrichment.87 Too often, management calls a group of employees a “team,” yet the work layout, assembly-line structure, and other tech- nologies isolate the employees from one another.
Virtual Teams Virtual teams are teams whose members operate across space, time, and organizational boundaries and are linked through information technologies to achieve organizational tasks.88 Virtual teams differ from traditional teams in two ways: (1) They are not usually co-located (do not work in the same physical area), and (2) due to their lack of co- location, members of virtual teams depend primarily on information technologies rather than face-to-face interaction to communicate and coordinate their work effort. Teams have degrees of virtuality. Team virtuality increases with the geographic dispersion of team members, percentage of members who work apart, and percentage of time that members work apart. For example, a team has low virtuality when all of its members live in the same city and only one or two members work from home each day. High virtuality exists when team members are spread around the world and only a couple of members have ever met in person.
Virtual teams have become common- place in most organizations. Two-thirds of human resource managers estimate that reliance on virtual teams will grow rapidly over the next few years.90 In global com- panies such as IBM, almost everyone in knowledge work is part of a virtual team. One reason virtual teams have become so widespread is that information technolo- gies have made it easier than ever before to communicate and coordinate with people at a distance.91 The shift from production- based to knowledge-based work is a second reason why virtual teamwork is feasible. It isn’t yet possible to make a physical prod- uct when team members are located apart, but most of us are now in jobs that mainly process knowledge.
Visit connect.mcgrawhill.com for activities and test questions to help you learn about virtual teams.
80% of managers polled in large U.S. companies say that their firm’s reliance on virtual teams will grow in importance over the next three years.
70% of U.S. chief information officers polled indicate that managing virtual teams is a very important globalization challenge (highest rated issue on the list).
58% of U.S. managers say that it is somewhat or very important that all members of their department work from the same location.
More Virtual Teams, More Virtual Challenges89
virtual teams
Teams whose members operate across space, time, and organizational boundaries and are linked through information technologies to achieve organizational tasks.
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240 Part Three Team Processes
Information technologies and knowledge-based work make virtual teams possible, but organizational learning and globalization are two reasons why they are increasingly neces- sary. In Chapter 1, we learned that organizational learning is one of four perspectives of organizational effectiveness. Virtual teams represent a natural part of the organizational learning process because they encourage employees to share and use knowledge where
debating point ARE VIRTUAL TEAMS MORE TROUBLE THAN THEY’RE WORTH?
Virtual teams were rare before the Internet was born. Today, they are almost as commonplace as face-to-face teams. Virtual teams are increasingly possible because more of us are employed in knowledge work rather than physical production. Furthermore, information technologies make it easier to communicate instanta- neously with coworkers around the globe. To some extent, virtual teams have even become “cool.” It is almost a badge of honor to say that you are a member of a far-flung team of people from sev- eral continents. But whether they are stylish or commonplace, virtual teams seem to be increasingly necessary for an organization’s competi- tive advantage. This chapter points out that we need virtual teams to effectively engage in organizational learning. Knowledge has become the currency of organizational success, and globalization has ensured that such knowledge is scattered around the world. In short, organizations are at a disadvantage unless they use lots of virtual teams. How could anyone claim that virtual teams aren’t worth the effort, particularly when organizational learning is one of the four pillars of organizational effectiveness (see Chapter 1)? Well, actu- ally, there are a few arguments against them. For the most part, critics don’t deny the potential value of sharing knowledge through virtual teams. Rather, they have added up the negative features and concluded that they outweigh the benefits. In fact, when chief information officers were asked to identify the top challenges of globalization, 70 percent listed managing virtual teams as the top concern.92
One persistent problem with virtual teams is that they lack the richness of face-to-face communication. We’ll provide more de- tail about this important matter in Chapter 9, but no information technology to date equals the volume and variety of information transmitted among people located in the same room. This is one reason Toyota, PSA Peugeot Citroën, and other companies ar- range for teams to meet in the same physical space. They can exchange information in larger volumes, much faster, and more accurately compared with the clumsy methods currently avail- able to virtual teams. Multiperson video chat is getting closer to face-to-face, but it requires considerable bandwidth and still falls short on communication richness.
Another problem with virtual teams is that people trust others more easily when they are nearby.93 Various studies have re- ported that virtual team members either have lower trust com- pared with co-located team members, or their trust is much more fragile. In fact, experts offer one main recommendation to in- crease trust among virtual team members: Have them spend time together as co-located teams. “When you’re starting a company, everybody needs to be on the same page about what is import- ant,” warns Leonard Speiser, a serial Internet entrepreneur who has also worked at Yahoo and eBay. “You have to be able to get together and talk, get to know each other. It takes great effort to do that virtually.”94
A third drawback of virtual teams is that the farther away peo- ple are located, the more they differ in experiences, beliefs, culture, and expectations. These differences can be advantageous for some decisions, of course, but they can also be a curse for team development and performance. “Everyone must have the same pic- ture of what success looks like,” advises Rick Maurer, a leadership consultant in Arlington, Virginia. “Without that laser-like focus, it is too easy for people in Bangalore to develop a different picture of success than the picture held by their colleagues in Brussels. Now multiply that by a couple more locations and you’ve got a mess.”95
Here’s one more reason why companies should think twice before relying on virtual teams: People seem to have less influ- ence or control over distant than over co-located coworkers. A team member who stops by your cubicle to ask how your part of the report is coming along has much more effect than an impersonal—or even a flaming—e-mail from afar. Perhaps that is why surveys reveal less satisfaction with vir- tual team members than co-located team members.96 One study reported that distant colleagues received two to three times as many complaints as co-located colleagues about working half-heartedly (or not at all) on shared projects, falling behind on projects, not making deadlines, failing to warn about missing deadlines, making changes without warning, and providing mis- leading information. When asked how long it takes to resolve these problems, more than half of the respondents indicated a few days for co-located team members, whereas most estimated a few weeks or longer for distant team members.
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Chapter Eight Team Dynamics 241
geography limits more direct forms of collaboration. Globalization makes virtual teams increasingly necessary because employees are spread around the planet rather than around one building or city. Thus, global businesses depend on virtual teamwork to leverage the potential of their employees.
SUCCESS FACTORS FOR VIRTUAL TEAMS Virtual teams face all the challenges of traditional teams, as well as the issues arising from time and distance. These challenges increase with the team’s virtuality, particularly when the team exists for only a short time.97 Fortunately, OB research has identified the following strategies to minimize most virtual team problems.98 First, virtual team members require more than the team competencies described earlier in this chapter. They also require good communication technology skills, strong self-leadership skills to motivate and guide their behavior without peers or bosses nearby, and higher emotional intelligence so that they can decipher the feelings of other team members from e-mail and other limited communication media.
Second, virtual teams should have a toolkit of communication channels (e-mail, virtual whiteboards, video conferencing, etc.), as well as the freedom to choose the channels that work best for them. This may sound obvious, but unfortunately senior management tends to impose technology on virtual teams, often based on advice from external consultants, and expects team members to use the same communication technology throughout their work. In contrast, research suggests that specific communication channels gain and lose impor- tance over time, depending on the task and level of trust.
Third, virtual teams need plenty of structure. In one recent review of effective virtual teams, many of the principles for successful virtual teams related mostly to creating these structures, such as clear operational objectives, documented work processes, and agreed- upon roles and responsibilities.99 The final recommendation is that virtual team members should meet face-to-face fairly early in the team development process. This idea may seem contradictory to the entire notion of virtual teams, but so far, no technology has replaced face-to-face interaction for high-level bonding and mutual understanding.100
Team Decision Making Self-directed teams, virtual teams, and practically all other groups are expected to make de- cisions. Under certain conditions, teams are more effective than individuals at identifying problems, choosing alternatives, and evaluating their decisions. To leverage these benefits, however, we first need to understand the constraints on effective team decision making. Then, we look at specific team structures that try to overcome these constraints.
LO 8-5
Virtual teamwork (or telecommuting) doesn’t hold up well during team-building trust exercises.
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242 Part Three Team Processes
CONSTRAINTS ON TEAM DECISION MAKING Anyone who has spent enough time in the workplace can recite several ways in which teams stumble in decision making. The four most common problems are time constraints, evalua- tion apprehension, pressure to conform, and overconfidence.
Time Constraints There’s a saying that committees keep minutes and waste hours. This reflects the fact that teams take longer than individuals to make decisions.101 Teams consume time organizing, coordinating, and maintaining relationships (i.e., process losses). Team members require time to build rapport, agree on rules and norms of behavior in the decision process, and understand each other’s ideas.
Another time-related constraint in most team structures is that only one person can speak at a time.102 This problem, known as production blocking, undermines idea genera- tion in a few ways. First, team members need to listen in on the conversation to find an opportune time to speak up, but this monitoring makes it difficult for them to concentrate on their own ideas. Second, ideas are fleeting, so the longer they wait to speak up, the more likely their flickering ideas will die out. Third, team members might remember their fleeting thoughts by concentrating on them, but this causes them to pay less attention to the conver- sation. By ignoring what others are saying, team members miss other potentially good ideas.
Evaluation Apprehension Team members are often reluctant to mention ideas that seem silly because they believe (often correctly) that other team members are silently evalu- ating them.103 This evaluation apprehension is based on the individual’s desire to create a favorable self-presentation and need to protect self-esteem. It is most common when meet- ings are attended by people with different levels of status or expertise or when members formally evaluate each other’s performance throughout the year (as in 360-degree feedback). Creative ideas often sound bizarre or illogical when first presented, so evaluation apprehen- sion tends to discourage employees from mentioning them in front of coworkers.
Pressure to Conform Team cohesion leads employees to conform to the team’s norms. This control keeps the group organized around common goals, but it may also cause team members to suppress their dissenting opinions, particularly when a strong team norm is related to the issue. When someone does state a point of view that violates the majority opinion, other members might punish the violator or try to persuade him or her that the opinion is incorrect. Conformity can also be subtle. To some extent, we depend on the opin- ions that others hold to validate our own views. If coworkers don’t agree with us, we begin to question our own opinions even without overt peer pressure.
Overconfidence (Inflated Team Efficacy) Teams are more successful when their members have collective confidence in how well they work together and the likely success of their team effort.104 This team efficacy is similar to the power of individual self-efficacy, which we discussed in Chapter 3. High-efficacy teams set more challenging goals and are more motivated to achieve them, both of which increase team performance.
Unfortunately, teams some- times become overconfi- dent and develop a false sense of invulnerability.105 In other words, the team’s efficacy far exceeds reality regarding its competencies and the favorableness of the situation. Overconfident teams are less vigilant when making decisions, partly
production blocking
A time constraint in team decision making due to the procedural requirement that only one person may speak at a time.
evaluation apprehension
A decision-making problem that occurs when individuals are reluctant to mention ideas that seem silly because they believe (often correctly) that other team members are silently evaluating them.
team efficacy
The collective belief among team members of the team’s capability to successfully complete a task.
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Chapter Eight Team Dynamics 243
because they have more positive than negative emotions and moods during these events. They also engage in less discussion (task conflict) and are less likely to seek out or accept information located outside the team, both of which undermine the quality of team decisions.
Why do teams become overconfident? The main reason is a team-level variation of self-enhancement (see Chapter 3), whereby team members have a natural motivation to believe the team’s capabilities and situation are above average. Overconfidence is more common in highly cohesive teams, because people engage in self-enhancement for things that are important to them (such as a cohesive team). It is also stronger when the team has external threats or competition, because these adversaries generate “us–them” differentia- tion. Team efficacy is further inflated by the mutually reinforcing beliefs of the team. We develop a clearer and higher opinion of the team when other team members echo that opinion.
IMPROVING CREATIVE DECISION MAKING IN TEAMS Team decision making is fraught with problems, but several solutions also emerge from these bad-news studies. Team members need to be confident in their decision making but not so confident that they collectively feel invulnerable. This calls for team norms that encourage critical thinking as well as team membership with sufficient diversity. Checks and balances need to be in place to prevent one or two people from dominating the discus- sion. The team should also be large enough to possess the collective knowledge to resolve the problem yet small enough that the team doesn’t consume too much time or restrict individual input.
Along with these general recommendations, OB studies have identified four team struc- tures that encourage creativity in a team setting: brainstorming, brainwriting, electronic brainstorming, and nominal group technique. These four structures emphasize idea creation (the central focus of creativity), but some also include team selection of alternatives.
Brainstorming Brainstorming is a team event where participants try to think up as many ideas as possible. The process was introduced by advertising executive Alex Osborn in 1939 and has four simple rules to maximize the number and quality of ideas presented: (1) Speak freely—describe even the craziest ideas; (2) don’t criticize others or their ideas; (3) provide as many ideas as possible—the quality of ideas increases with the quantity of ideas; and (4) build on the ideas that others have presented. These rules are supposed to encourage divergent thinking while minimizing evaluation apprehension and other team dynamics problems.106
Brainstorming became popular when it was introduced, until a business magazine article in the 1950s misrepresented and lampooned the process. Also, over the past few decades, numerous lab studies have concluded that brainstorming doesn’t produce as many ideas as individuals working alone. Production blocking and evaluation apprehension are identified as the main culprits.107 These findings are perplexing, because some of the most successful creative agencies and design firms say that brainstorming is a helpful tool.108 The leaders of these companies might be mistaken, but a more likely explanation is their advice that brain- storming takes considerable skill and experience with a trained facilitator in a collaborative learning orientation culture. These conditions are missing from most lab studies, which are short-term events with inexperienced undergraduate students who barely know each other. Also, brainstorming sessions are intended to produce creative ideas, whereas lab studies tend to measure the number of ideas.109
Brainstorming likely improves team creativity, but it does have limitations. First, even with people who are trained and experienced, brainstorming suffers from production block- ing. Great thoughts are forgotten while team members listen to each other’s ideas, and sparks of insight are forfeited if team members do not listen to each other’s ideas. A second
brainstorming
A freewheeling, face-to-face meeting where team members aren’t allowed to criticize but are encouraged to speak freely, generate as many ideas as possible, and build on the ideas of others.
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244 Part Three Team Processes
problem, called fixation or conformity effect, is that hearing another person’s ideas tends to restrict the variety of ideas that we subsequently think about. In brainstorming, participants are asked to openly describe their ideas, but the first few verbal descriptions might cause participants to limit their thinking to ideas similar to those first suggestions rather than other categories of ideas. However, neuroscience studies report that people think more cre- atively when exposed to moderately creative (but not wildly nonsensical) ideas generated by other people.110
Brainwriting Brainwriting is a variation of brainstorming that minimizes the prob- lem of production blocking by removing conversation during idea generation.111 There are many forms of brainwriting, but they all have the common feature that individuals write down their ideas rather than verbally describe them. In one version, participants write their ideas on cards and place them in the center of the table. At any time, participants can pick up one or more cards in the center to spark their thinking or build further (piggyback) on those ideas. In another variation, each person writes one idea on a card, then passes the card to the person on his or her right. The receiving person writes a new idea on a second card, both cards are sent to the next person, and the process is repeated. The limited research on brainwriting suggests that it produces more and better quality ideas than brainstorming, due to the lack of production blocking.
Electronic Brainstorming Electronic brainstorming is similar to brainwriting but uses computer technology rather than handwritten cards to document and share ideas. After receiving the question or issue, participants enter their ideas using special computer soft- ware. The ideas are distributed anonymously to other participants, who are encouraged to piggyback on those ideas. Team members eventually vote electronically on the ideas pre- sented. Face-to-face discussion usually follows. Electronic brainstorming can be quite effec- tive at generating creative ideas with minimal production blocking, evaluation apprehension, or conformity problems.112 It can be superior to brainwriting because ideas are generated anonymously and are easier for other participants to view. Despite these numerous advan- tages, electronic brainstorming tends to be too structured and technology-bound.
Nominal Group Technique Nominal group technique is another variation of brainwriting that adds a verbal element to the process.113 The activity is called “nominal” because the participants are a group in name only during two of the three steps. After the problem is described, team members silently and independently write down as many solu- tions as they can. In the second stage, participants describe their solutions to the other team members, usually in a round-robin format. As with brainstorming, there is no criti- cism or debate, though members are encouraged to ask for clarification of the ideas pre- sented. In the third stage, participants silently and independently rank-order or vote on each proposed solution. The nominal group technique has been applied in numerous laboratory and real-world settings, such as identifying ways to improve tourism in various countries.114
This method tends to gen- erate a higher number of ideas and better-quality ideas than do traditional interacting and possibly brainstorming groups.115 However, production block- ing and evaluation appre- hension still occur to some extent. Training improves this structured approach to team decision making.116
brainwriting
A variation of brainstorming whereby participants write (rather than speak about) and share their ideas.
electronic brainstorming
A form of brainwriting that relies on networked computers for submitting and sharing creative ideas.
nominal group technique
A variation of brainwriting consisting of three stages: Participants (1) silently and independently document their ideas, (2) collectively describe these ideas to the other team members without critique, and then (3) silently and independently evaluate the ideas presented.
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8-1 Discuss the benefits and limitations of teams, and ex- plain why employees join informal groups.
Teams are groups of two or more people who interact and influ- ence one another, are mutually accountable for achieving com- mon goals associated with organizational objectives, and perceive themselves as a social entity within an organization. All teams are groups, because they consist of people with a unifying rela- tionship; not all groups are teams, because some groups do not exist to serve organizational objectives. People join informal groups (and are motivated to be on formal teams) for four reasons: (1) They have an innate drive to bond, (2) group membership is an inherent ingredient in a person’s self-concept, (3) some personal goals are accomplished better in groups, and (4) individuals are comforted in stressful situations by the mere presence of other people. Teams have become popular because they tend to make better decisions, support the knowledge management process, and provide superior customer service. Teams are not always as effective as individuals working alone. Process losses and social loafing drag down team performance.
8-2 Outline the team effectiveness model and discuss how task characteristics, team size, and team composition influence team effectiveness.
Team effectiveness includes the team’s ability to achieve its objectives, fulfill the needs of its members, and maintain its survival. The model of team effectiveness considers the team and organizational environment, team design, and team processes. Three team design elements are task characteristics, team size, and team composition. Teams tend to be better suited for situa- tions in which the work is complex yet tasks are well-structured and have high task interdependence. Teams should be large enough to perform the work yet small enough for efficient coordination and meaningful involvement. Effective teams are composed of people with the competencies and motivation to perform tasks in a team environment. Team member diversity has advantages and disadvantages for team performance.
8-3 Discuss how the four team processes—team develop- ment, norms, cohesion, and trust—influence team effectiveness.
Teams develop through the stages of forming, storming, norming, performing, and eventually adjourning. Within
these stages are two distinct team development processes: de- veloping team identity and developing team mental models and coordinating routines. Team development can be acceler- ated through team building—any formal activity intended to improve the development and functioning of a work team. Teams develop norms to regulate and guide member behavior. These norms may be influenced by initial experiences, critical events, and the values and experiences that team members bring to the group. Team cohesion—the degree of attraction people feel toward the team and their motivation to remain members—increases with member similarity, smaller team size, higher degree of in- teraction, somewhat difficult entry, team success, and external challenges. Cohesion increases team performance when the team has high interdependence and its norms are congruent with organizational goals. Trust refers to positive expectations one person has toward another person in situations involving risk. People trust others on the basis of three foundations: calculus, knowledge, and identification.
8-4 Discuss the characteristics and factors required for the success of self-directed teams and virtual teams.
Self-directed teams (SDTs) complete an entire piece of work requiring several interdependent tasks, and they have substan- tial autonomy over the execution of their tasks. Members of virtual teams operate across space, time, and organizational boundaries and are linked through information technologies to achieve organizational tasks. Virtual teams are more effective when the team members have certain competencies, the team has the freedom to choose the preferred communication chan- nels, and the members meet face-to-face fairly early in the team development process.
8-5 Identify four constraints on team decision making and discuss the advantages and disadvantages of four structures aimed at improving team decision making.
Team decisions are impeded by time constraints, evaluation ap- prehension, conformity to peer pressure, and overconfidence. Four structures potentially improve decision making in team settings: brainstorming, brainwriting, electronic brainstorming, and nominal group technique.
chapter summary
brainstorming, p. 243 brainwriting, p. 244 Brooks’s law, p. 224 electronic brainstorming, p. 244 evaluation apprehension, p. 242 nominal group technique, p. 244
norms, p. 234 process losses, p. 224 production blocking, p. 242 role, p. 233 self-directed teams (SDTs), p. 238 social loafing, p. 224
task interdependence, p. 227 team building, p. 233 team cohesion, p. 234 team efficacy, p. 242 teams, p. 220 virtual teams, p. 239
key terms
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critical thinking questions 1. Informal groups exist in almost every form of social organi-
zation. What types of informal groups exist in your class- room? Why are students motivated to belong to these informal groups?
2. The late management guru Peter Drucker once said: “The now-fashionable team in which everybody works with every- body on everything from the beginning rapidly is becoming a disappointment.” Discuss three problems associated with teams.
3. You have been put in charge of a cross-functional task force that will develop enhanced Internet banking services for retail customers. The team includes representatives from marketing, information services, customer service, and accounting, all of whom will move to the same location at headquarters for three months. Describe the behaviors you might observe during each stage of the team’s development.
4. You have just been transferred from the Kansas office to the Denver office of your company, a national sales organization of electrical products for developers and contractors. In Kansas, team members regularly called customers after a sale to ask whether the products arrived on time and whether they are satisfied. But when you moved to the Denver office, no one seemed to make these follow-up calls. A recently hired coworker explained that other coworkers discouraged her from making those calls. Later, another coworker suggested that your follow-up calls were making everyone else look lazy. Give three possible reasons why the norms in Denver might be different from those in the Kansas office, even though the customers, products, sales commissions, and other character- istics of the workplace are almost identical.
5. A software engineer in the United States needs to coordinate with four team members in geographically dispersed areas of the world. What team challenges might the team experience, and how will they affect the team design elements?
6. You have been assigned to a class project with five other students, none of whom you have met before, and some of whom come from different countries. To what extent would team cohesion improve your team’s performance on this project? What actions would you recommend to build team cohesion among student team members in this situation?
7. Suppose you are put in charge of a virtual team whose members are located in different cities around the world. What tactics could you use to build and maintain team trust and performance, as well as minimize the decline in trust and performance that often occurs in teams?
8. You are responsible for convening a major event in which se- nior officials from several state governments will try to come to an agreement on environmental issues. It is well known that some officials take positions to make themselves appear superior, whereas others are highly motivated to solve the environmental problems that cross adjacent states. What team decision-making problems are likely to be apparent in this government forum, and what actions can you take to minimize these problems?
9. The chief marketing officer of Sawgrass Widgets wants mar- keting and sales staff to identify new uses for its products. Which of the four team structures for creative decision mak- ing would you recommend? Describe and justify this process to Sawgrass’s chief marketing officer.
CASE STUDY: ARBRECORP LTÉE Steven L. McShane, The University of Western Australia, and David Lebeter
ArbreCorp Ltée is a sawmill operation in Québec, Canada, that is owned by a major forest products company but oper- ates independently of the parent company. It was built 30 years ago and completely updated with new machinery 5 years ago. ArbreCorp receives raw logs from the area for cutting and planing into building-grade lumber, mostly 2-by-4 and 2-by-6 pieces of standard lengths. Higher grade logs leave ArbreCorp’s sawmill department in finished form and are sent directly to the packaging department. The remaining 40 percent of sawmill output are cuts from lower grade logs, requiring further work by the planing department. ArbreCorp has one general manager, 16 supervisors and support staff, and 180 unionized employees. The unionized employees are paid an hourly rate specified in the collective agreement, whereas management and support staff are paid a monthly salary. The mill is divided into six operating depart- ments: boom, sawmill, planer, packaging, shipping, and main- tenance. The sawmill, boom, and packaging departments
operate a morning shift starting at 6:00 a.m. and an afternoon shift starting at 2:00 p.m. Employees in these departments rotate shifts every two weeks. The planer and shipping depart- ments operate only morning shifts. Maintenance employees work the night shift (starting at 10:00 p.m.). Each department, except for packaging, has a supervisor on every work shift. The planer supervisor is responsible for the packaging department on the morning shift, and the sawmill supervisor is responsible for the packaging department on the afternoon shift. However, the packaging operation is housed in a separate building from the other departments, so supervisors seldom visit the packaging department. This is particularly true for the afternoon shift, because the sawmill supervisor is the furthest distance from the packaging building.
Packaging Quality Ninety percent of ArbreCorp’s product is sold on the international market through Boismarché Ltée, a large marketing agency. Boismarché represents all forest products mills owned by ArbreCorp’s
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TEAM EXERCISE: TEAM TOWER POWER PURPOSE This exercise is designed to help you under- stand team roles, team development, and other issues in the development and maintenance of effective teams.
MATERIALS The instructor will provide enough Lego pieces or similar materials for each team to complete the as- signed task. All teams should have identical (or very similar) amounts and types of pieces. The instructor will need a mea- suring tape and stopwatch. Students may use writing materi- als during the design stage (see instructions). The instructor
will distribute a “Team Objectives Sheet” and “Tower Specifi- cations Effectiveness Sheet” to all teams.
INSTRUCTIONS The instructor will divide the class into teams. Depending on class size and space availability, teams may have between four and seven members, but all should be approximately equal in size. Each team has 20 minutes to design a tower that uses only the materials provided, is freestanding, and provides an opti- mal return on investment. Team members may wish to draw
parent company as well as several other clients in the region. The market for building-grade lumber is very price competitive, because there are numerous mills selling a relatively undifferentiated product. However, some differentiation does occur in product packaging and presentation. Buyers will look closely at the packaging when deciding whether to buy from ArbreCorp or another mill. To encourage its clients to package their products better, Boismarché sponsors a monthly package quality award. The marketing agency samples and rates its clients’ packages daily, and the sawmill with the highest score at the end of the month is awarded a framed certificate of excellence. Package quality is a combination of how the lumber is piled (e.g., de- fects turned in), where the bands and dunnage are placed, how neatly the stencil and seal are applied, the stencil’s accu- racy, and how neatly and tightly the plastic wrap is attached. ArbreCorp won Boismarché’s packaging quality award several times over the past five years, and received high ratings in the months that it didn’t win. However, the mill’s ratings have started to decline over the past year or two, and several clients have complained about the appearance of the finished product. A few large customers switched to competitors’ lumber, saying that the decision was based on the substan- dard appearance of ArbreCorp’s packaging when it arrived in their lumber yard.
Bottleneck in Packaging The planing and sawmilling departments have significantly increased productivity over the past couple of years. The sawmill operation recently set a new productivity record on a single day. The planer operation has increased productivity to the point where last year it reduced operations to just one (rather than two) shifts per day. These productivity improvements are due to better operator training, fewer machine breakdowns, and better selection of raw logs. (Sawmill cuts from high-quality logs usually do not require planing work.) Productivity levels in the boom, shipping, and maintenance departments have remained constant. However, the packaging department has recorded decreasing productivity over the past couple of years, with the result that a large backlog of finished product is typically stockpiled outside the packaging building.
The morning shift of the packaging department is unable to keep up with the combined production of the sawmill and planer departments, so the unpackaged output is left for the afternoon shift. Unfortunately, the afternoon shift packages even less product than the morning shift, so the backlog con- tinues to build. The backlog adds to ArbreCorp’s inventory costs and increases the risk of damaged stock. ArbreCorp has added Saturday overtime shifts as well as extra hours before and after the regular shifts for the packag- ing department employees to process this backlog. Last month, the packaging department employed 10 percent of the workforce but accounted for 85 percent of the overtime. This is frustrating to ArbreCorp’s management, because time and motion studies recently confirmed that the packaging department is capable of processing all of the daily sawmill and planer production without overtime. With employees earning one and a half or two times their regular pay on over- time, ArbreCorp’s cost competitiveness suffers. Employees and supervisors at ArbreCorp are aware that people in the packaging department tend to extend lunch by 10 minutes and coffee breaks by 5 minutes. They also typi- cally leave work a few minutes before the end of their shift. This abuse has worsened recently, particularly on the after- noon shift. Employees who are temporarily assigned to the packaging department also seem to participate in this time loss pattern after a few days. Although they are punctual and productive in other departments, these temporary employees soon adopt the packaging crew’s informal schedule when as- signed to that department.
Discussion Questions
1. What symptom(s) in this case suggest that something has gone wrong?
2. What are the main causes of these symptoms? 3. What actions should executives take to correct these
problems?
© Copyright 1995 Steven L. McShane and David Lebeter. This case is based on actual events, but names and some characteristics have been changed to maintain anonymity.
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TEAM EXERCISE: HUMAN CHECKERS PURPOSE This exercise is designed to help you under- stand the importance and application of team dynamics and decision making.
MATERIALS None, but the instructor has more informa- tion about each team’s task.
INSTRUCTIONS
1. Form teams of eight students. If possible, each team should have a private location, where team members can plan and practice the required task without being observed or heard by other teams.
2. All teams receive special instructions in class about their assigned task. All teams have the same task and the same amount of time to plan and practice the task. At the end of this planning and practice period, each team will be timed while completing the task in class. The team that completes the task in the least time wins.
3. No special materials are required or allowed (see rules be- low) for this exercise. Although the task is not described here, students should learn the following rules for plan- ning and implementing the task: a. You cannot use any written form of communication
or any props to assist in the planning or implementa- tion of this task.
b. You may speak to other students in your team at any time during the planning and implementation of this task.
c. When performing the task, you can move only forward, not backward. (You are not allowed to turn around.)
d. When performing the task, you can move forward to the next space, but only if it is vacant. In Exhibit 1, the individual (black dot) can move directly into an empty space (white dot).
e. When performing the task, you can move forward two spaces if that space is vacant. In other words, you can move around a person who is one space in front of you to the next space if that space is vacant. (In Exhibit 2, two people occupy the black dots, and the white dot is an empty space. A person can move around the person in front to the empty space.)
Exhibit 1 Exhibit 2
4. When all teams have completed their task, the class will discuss the implications of this exercise for team dynam- ics and decision making.
Discussion Questions
1. Identify the team dynamics and decision-making con- cepts that the team applied to complete this task.
2. What personal theories of people and work teams were applied to complete this task?
3. What other organizational behavior issues occurred, and what actions were (or should have been) taken to solve them?
their tower on paper or a flip-chart to facilitate the tower’s design. Teams are free to practice building their tower during this stage. Preferably, each team will have a secluded space so that the design can be created privately. During this stage, each team will complete the Team Objectives Sheet dis- tributed by the instructor. This sheet requires the Tower Specifications Effectiveness Sheet, also distributed by the instructor. Each team will show the instructor that it has com- pleted its Team Objectives Sheet. Then, with all teams in the same room, the instructor will announce the start of the construction phase. The time allowed for construction will be closely monitored, and the instructor will occasion- ally call out the time elapsed (particularly if there is no clock in the room).
Each team will advise the instructor as soon as it has com- pleted its tower. The team will write down the time elapsed, as determined by the instructor. The team also may be asked to assist the instructor by counting the number of blocks used and measuring the height of the tower. This informa- tion gets added to the Team Objectives Sheet. Then, the team calculates its profit. After presenting the results, the class will discuss the team dynamics elements that contribute to team effectiveness. Team members will discuss their strategy, division of labor (team roles), expertise within the team, and other elements of team dynamics.
Source: Several published and online sources describe variations of this exercise, but there is no known origin to this activity.
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TEAM EXERCISE: MIST RIDGE By Richard Field, University of Alberta, and Nicola Sutton
It is approximately 9:00 a.m. on August 23rd, and you and four friends are about to set off on an all-day hike in the moun- tains of Southwestern Alberta, Canada. Having driven south- west from Calgary, Alberta, you have arrived at Kananaskis Provincial Park, located on the boundary between British Columbia and Alberta. Just off Highway 40, you turn into the Mist Creek day-use area and park the car. You can see a sign indicating the beginning of the Mist Ridge trail, which you have selected for your hike, but you know that from there on the trail proceeds along unmarked paths and logging roads. You can also see another sign that allows campfires only in designated rest areas. Since it is mid-week, few others should be on the Mist Ridge trail. You and your friends are looking forward to an enjoyable day walking the long grass and rock ridge, as it is usually dry and sunny at this time of year, whereas a mere few kilometers (couple of miles) away, across the valley, Mist Mountain can be covered in rain clouds. Hiking from the parking lot to the ridge, along the whole top of the ridge to Rickert’s Pass, and then returning at ground level alongside Mist Creek is a minimum eight-hour trip. In guidebooks it is classified as a long day hike, covering a total distance of 23 ki- lometers (14 miles), with a height gain of 808 meters (2,650 feet) and a maximum elevation of 2,515 meters (8,250 feet). The weather at the moment is cool but not cold, and the sun is beaming down, beginning to heat the air. In general, the climate of Southwestern Alberta is cold continental, hav- ing long cold winters and cool summers, though summers do have brief hot spells. Annual precipitation peaks in the sum- mer, and thunderstorms occur regularly. Hikers at this time of year must be prepared for rain or cold weather. Snow has been known to fall by the middle of August in this area, with accumulations on the ground of up to 20 centimeters (8 inches). Also, the weather can be somewhat changeable and unpredictable. What starts out as a warm sunny morning could easily change into a cold, snowy afternoon. Therefore, experienced hikers will make sure that they have adequate reserve clothing for the rain or snow that could develop. It is
also known that temperatures are expected to be cooler at the top of the ridge, as temperatures decrease, in general, 2 de- grees Celsius for every 300 meters (1,000 feet) of altitude. There are a few dangers to watch out for during your hike. If you get soaked crossing a river, loss of body heat may result in hypothermia, even when temperatures are above freezing. Death from hypothermia is quite possible within a few hours of the first symptoms if proper care is not taken. On the other hand, the exertions of walking and climbing will probably cause you to sweat. Dehydration can increase your chance of sunstroke and hypothermia. In terms of animals, you may encounter a bear looking for berries. While bear attacks on humans are not common, they are not unusual either. It is also possible that elk or moose may be encountered. These large plant eaters are not usually dangerous to humans, but they should be avoided during the mating season. There are also some insects to be considered. Ticks can carry Rocky Mountain Spotted Fever, which can be fatal if left untreated. Bees can also be dangerous if the person stung has a strong allergic reaction. You are all currently dressed in warm clothes, including wool socks and sturdy hiking boots, and each person has a day pack in which to carry those items that you deem necessary.
PART I: INDIVIDUAL DECISION There are 15 items listed below. Before you set out on your hike, your task is to rank these items according to their general importance for a hiker, not for you specifically. Rank the items from 1, the most important, to 15, the least important. No ties are al- lowed. You might want to consider, “If a hiker was allowed to take only one item, what would it be?” That item would be ranked number 1. Then, “If a hiker was allowed only one more item, what would it be?” That item would rank number 2. Write your rankings in the column titled “Your Ranking.” It is important to remember that the decisions that you are making are for your group as a whole and should not be in- fluenced by factors affecting you as an individual.
YOUR GROUP EXPERT YOUR GROUP ITEMS RANKING RANKING RANKING SCORE SCORE
(continued)
Canteen with water
Matches
Compass
Hat
Repair kit (includes short length of cord, string, duct tape, and shoelaces)
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SELF-ASSESSMENT
WHAT TEAM ROLES DO YOU PREFER? PURPOSE This self-assessment is designed to help you identify your preferred roles in meetings and similar team activities.
INSTRUCTIONS Read each of the statements on the next page and circle the response that you believe best reflects your
position regarding each statement. Then, use the scoring key in Appendix B at the end of the book to calculate your results for each team role. This exercise should be completed alone so that you can assess yourself honestly without concerns of social com- parison. Class discussion will focus on the roles that people as- sume in team settings. This scale assesses only a few team roles.
PART II: GROUP DECISION Now form groups. Take a few minutes to examine and discuss your individual assump- tions before you begin to discuss how to rank specific items. Use constructive controversy decision rules to guide your de- cision method and rank the 15 items again. These rules are as follows: (1) Be critical of ideas, not people; (2) focus on mak- ing the best possible decision, not winning; (3) encourage everyone to participate in the discussion; (4) listen to every- one’s ideas, even if you do not agree; (5) restate what some- one has said if their point is not clear to you; (6) bring out the ideas and facts supporting both sides of the argument and then try to integrate them; (7) try to understand both sides of the issue under discussion; and (8) change your mind if the evidence clearly indicates that you should do so.* Write your group’s answers into the “Group Ranking” column.
PART III: SCORING Your instructor will inform you of how experts have ranked these 15 items. Write these rankings into the column titled “Expert Ranking.” To calculate your
personal score, calculate for each of the 15 items the absolute difference between your ranking and the expert’s ranking, then sum these 15 absolute value differences. Determine your group’s score in the same manner. Write these scores and summary statistics into the spaces below.
Your total score
Average of the individual scores in your group
Your group’s total score
Number of individuals in your group with a lower score than your group’s total score
Source: Copyright © 1992 by Richard Field and Nicola Sutton. All rights reserved. Based on information in Joseph Graham Ambrosi, Hiking in Alberta’s Southwest (Vancouver, BC: Douglas & McIntyre Ltd., 1984); Gillean Daffern, Kananaskis Country: A Guide to Hiking, Skiing, Equestrian & Bike Trails, 2nd ed. (Calgary, AB: Rocky Mountain Books, 1995); Patricia E. Kariel, Hiking Alberta’s David Thompson Country (Edmonton, AB: Lone Pine Publishing, 1987).
*D. W. Johnson and F. P. Johnson. Joining Together: Group Theory and Group Skills, 11th ed. (Upper Saddle River, NJ: Pearson, 2012).
YOUR GROUP EXPERT YOUR GROUP ITEMS RANKING RANKING RANKING SCORE SCORE
First aid kit (includes blister protection and aspirin)
Five sleeping bags
Sunglasses
Flashlight
Topographic map and Kananaskis Country Trail guide book
Food
5-person tent with waterproof fly (flap covering the tent entrance)
Sunscreen
Rain gear
Insect repellent
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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.
CIRCLE THE NUMBER THAT BEST REFLECTS DOES NOT DOES NOT YOUR POSITION REGARDING EACH OF THESE DESCRIBE ME DESCRIBE ME DESCRIBES ME DESCRIBES ME DESCRIBES ME STATEMENTS AT ALL VERY WELL SOMEWHAT WELL VERY WELL
© Copyright 2000 Steven L. McShane.
Team Roles Preferences Scale
1. I usually take responsibility for getting the 1 2 3 4 5 team to agree on what the meeting should accomplish.
2. I tend to summarize to other team members 1 2 3 4 5 what the team has accomplished so far.
3. I’m usually the person who helps other team 1 2 3 4 5 members overcome their disagreements.
4. I try to ensure that everyone gets heard 1 2 3 4 5 on issues.
5. I’m usually the person who helps the team 1 2 3 4 5 determine how to organize the discussion.
6. I praise other team members for their ideas 1 2 3 4 5 more than do others in the meetings.
7. People tend to rely on me to keep track of 1 2 3 4 5 what has been said in meetings.
8. The team typically counts on me to prevent 1 2 3 4 5 debates from getting out of hand.
9. I tend to say things that make the group feel 1 2 3 4 5 optimistic about its accomplishments.
10. Team members usually count on me to give 1 2 3 4 5 everyone a chance to speak.
11. In most meetings, I am less likely than others 1 2 3 4 5 to criticize the ideas of teammates.
12. I actively help teammates to resolve their 1 2 3 4 5 differences in meetings.
13. I actively encourage quiet team members to 1 2 3 4 5 describe their ideas about each issue.
14. People tend to rely on me to clarify the 1 2 3 4 5 purpose of the meeting.
15. I like to be the person who takes notes or 1 2 3 4 5 minutes of the meeting.
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Communicating in Teams and Organizations
After reading this chapter, you should be able to:
9-1 Explain why communication is important in organizations and discuss four influences on effective communication encoding and decoding.
9-2 Compare and contrast the advantages of and problems with electronic mail, verbal communication media, and nonverbal communication.
9-3 Explain how social acceptance and media richness influence the preferred communication channel.
9-4 Discuss various barriers (noise) to effective communication, including cross-cultural and gender-based differences in communication.
9-5 Explain how to get your message across more effectively, and summarize the elements of active listening.
9-6 Summarize effective communication strategies in organizational hierarchies, and review the role and relevance of the organizational grapevine.
9
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hen Infosys software engineers get stuck on a coding problem, they can tap into the company’s collective knowledge to get an answer, often within a few hours. Almost 110,000 of the Bangalore, India, technology company’s 150,000 employees
are members of an in-house social network platform called InfyBubble. “InfyBubble,
Infosys’ own enterprise networking platform, is a combination of Facebook and
Twitter in an internal setting, thus encouraging employees to connect with anyone
they wish to network with,” says the company’s internal communications team.
Through InfyBubble, employees can “follow” their colleagues’ conversations, form
groups around common knowledge areas, set up watchlists on specific topics, and
post photos and other information about themselves. Similar to Facebook, InfyBubble
has “like” and “share” features that identify the most valued nuggets of knowledge.
“Someone asks for employees’ ideas on a thread [online posts around a specific
topic], and the whole project team starts giving their ideas on the thread itself,” says
Infosys executive Nandita Gurjar. “If someone thinks the idea is good, then they ‘like’
the comment. Based on the most ‘liked’ solutions, we arrive on a pool of solutions.”
InfyBubble was introduced when Infosys executives realized the potential of
internal communication through social media—and that younger employees expect
companies to use these new channels. One survey found that Infosys employees in
India wanted communication channels that allow them to access information
instantly, fluidly connect with one another, express opinions, interact directly with
Infosys leaders, and have fun as well as be serious in the communication process.
They also wanted InfyBubble and other communication channels that assume an
“adult–adult” relationship between employees and management. Traditional top-down
organizational communication instead assumes a “parent–child” relationship.
“Collaboration is the new management paradigm—all voices must be heard,” says
Infosys’s communications team. “At the workplace this translates to communication
always being two-way. Every platform at Infosys is built on the interactive model.
Whenever communication is sent out, employees are always welcome to offer their
suggestion.”1
h p k AA
W
253
Infosys has adopted an “adult–adult” communication strategy by introducing InfyBubble, an in-house social media platform similar to Facebook.
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254 Part Three Team Processes
When Facebook and other social media sites first gained popularity, many businesses blocked employee access and banned their use, claiming they wasted time and were portals for distributing intellectual property. Now, Infosys and other companies are adopting social media as cornerstones of their communication strategy. They are discovering that these new channels offer significant potential for information sharing and social bonding, and that the workforce increasingly uses and expects their organizations to provide these communication channels. Even with these technological developments, we may still be at the beginning of this revolution. Each new method of social interaction creates fascinating changes in how people communicate in the workplace.
Communication refers to the process by which information is transmitted and under- stood between two or more people. We emphasize the word “understood” because transmit- ting the sender’s intended meaning is the essence of good communication. This chapter begins by discussing the importance of effective communication, outlining the communica- tion process model, and discussing factors that improve communication coding and decod- ing. Next, we identify types of communication channels, including e-mail and social media sites, followed by factors to consider when choosing a communication medium. This chap- ter then identifies barriers to effective communication. The latter part of this chapter offers an overview of ways to communicate in organizational hierarchies and insights about the pervasive organizational grapevine.
The Importance of Communication Effective communication is vital to all organizations, so much so that no company could exist without it. The reason? Recall from Chapter 1 that organizations are defined as groups of people who work interdependently toward some purpose. People work interdependently only when they can communicate with each other. Although organizations rely on a variety of coordinating mechanisms (which we discuss in Chapter 13), frequent, timely, and accurate communication remains the primary means through which employees and work units effec- tively synchronize their work.2 Chester Barnard, a telecommunications CEO and a respected pioneer in organizational behavior theory, made this observation back in 1938: “An organiza- tion comes into being when there are persons able to communicate with each other.”3
In addition to coordination, communication plays a central role in organizational learn- ing. It is the means through which knowledge enters the organization and is distributed to employees.4 A third function of communication is decision making. Imagine the challenge of making a decision without any information about the decision context, the alternatives available, the likely outcomes of those options, or the extent to which the decision is achiev- ing its objectives. All of these ingredients require communication from coworkers as well as
communication
The process by which information is transmitted and understood between two or more people.
LO 9-1
By making employee communication a priority, ESL Federal Credit Union has become one of the top medium-sized companies to work for in America. “We’re always focused on employee communication,” says Maureen Wolfe, Senior Vice President Human Resources & Community Relations at the Rochester, N.Y.-based financial institution. ESL relies on employee surveys, its intranet system, and plenty of face-to-face interaction between management and staff. “Employees feel they understand the expectations and have the tools they need to help in their day-to-day job while also keeping up on the latest business updates and fun activities going on as well.”6
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Chapter Nine Communicating in Teams and Organizations 255
from stakeholders in the external environment. For example, airline cockpit crews make much better decisions—and thereby cause far fewer accidents—when the captain encour- ages the crew to share information openly.5
A fourth function is to change behavior.7 When communicating to others, we are often trying to alter their beliefs and feelings and ultimately their behavior. This influence process might be passive, such as merely describing the situation more clearly and fully, or it might be a deliberate attempt to change someone’s thoughts and actions. We will discuss the topic of persuasion later in this chapter.
Finally, communication supports employee well-being.8 Communication conveys knowl- edge that helps employees better manage their work environment. For instance, research shows that new employees adjust much better to the organization when coworkers commu- nicate subtle nuggets of wisdom, such as how to avoid office politics, complete work proce- dures correctly, find useful resources, handle difficult customers, and so on.9 Emotionally, the communication experience itself is a soothing balm. Indeed, people are less susceptible to colds, cardiovascular disease, and other physical and mental illnesses when they have reg- ular social interaction.10 In essence, people have an inherent drive to bond, to validate their self-worth, and to maintain their social identity. Communication is the means through which these drives and needs are fulfilled.
A Model of Communication To understand the key interpersonal features of effective communication, let’s examine the model presented in Exhibit 9.1, which provides a useful “conduit” metaphor for thinking about the communication process.11 According to this model, communication flows through channels between the sender and receiver. The sender forms a message and encodes it into words, gestures, voice intonations, and other symbols or signs. Next, the encoded message is transmitted to the intended receiver through one or more communication
Visit connect.mcgrawhill.com for activities and test questions to help you learn about the communication process model.
Sender Transmit message
Transmit feedback
Receive encoded message
Encode feedback
Decode message
Form feedback
Decode feedback
Receive encoded feedback
Receiver
Noise
Form message
Encode message
EXHIBIT 9.1
The Communication Process Model
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256 Part Three Team Processes
channels (media). The receiver senses the incoming message and decodes it into something meaningful. Ideally, the decoded meaning is what the sender had intended.
In most situations, the sender looks for evidence that the other person received and un- derstood the transmitted message. This feedback may be a formal acknowledgment, such as “Yes, I know what you mean,” or indirect evidence from the receiver’s subsequent actions. Notice that feedback repeats the communication process. Intended feedback is encoded, transmitted, received, and decoded from the receiver to the sender of the original message. This model recognizes that communication is not a free-flowing conduit. Rather, the trans- mission of meaning from one person to another is hampered by noise—the psychological, social, and structural barriers that distort and obscure the sender’s intended message. If any part of the communication process is distorted or broken, the sender and receiver will not have a common understanding of the message.
INFLUENCES ON EFFECTIVE ENCODING AND DECODING According to the communication process model, effective communication depends on the ability of sender and receiver to efficiently and accurately encode and decode information. How well this encoding-decoding process works depends on whether the sender and receiver have similar codebooks, the sender’s proficiency at encoding the message to the audience, the sender and receiver’s motivation and ability to transmit messages through that particular com- munication channel, and their common mental models of the communication context.12
Similar Codebooks The sender and receiver rely on “codebooks,” which are dictio- naries of symbols, language, gestures, idioms, and other tools used to convey information. With similar codebooks, the communication participants are able to encode and decode more accurately because they assign the same or similar meaning to the transmitted symbols and signs. Communication efficiency also improves because there is less need for redun- dancy (repeating the message in different ways) and less need for confirmation feedback (“So, you are saying that. . . ?”).
Message Encoding Proficiency Even with the same codebooks, some people are better than others at communicating the message because, through experience, they have learned which words and gestures transmit the message best to that audience. Suppose that you have spoken to several employee groups about the company’s new product development plans. With each session, you learn which words, symbols, voice intonations, and other features transmit the message better than others. Through experience, you fine-tune the presentation so the audience receives your message more efficiently and effectively.
Communication Channel Motivation and Ability The encoding–decoding pro- cess depends on the sender’s and receiver’s motivation and ability to use the selected commu- nication channel. Some people prefer face-to-face conversations, whereas others would rather prepare or receive written documentation. Some people are skilled at communicating through Twitter tweets, whereas others are more effective at writing detailed reports. So, even if both parties have the same codebooks and are skilled at using those codebooks for a particular message, message encoding and decoding can be hampered by a communication channel that the sender, receiver, or both dislike or for which they lack proficiency.13
Shared Mental Models of the Communication Context Mental models are internal representations of the external world that allow us to visualize elements of a set- ting and relationships among those elements (see Chapter 3). A sender and receiver with shared mental models of the communication context have similar images and expectations regarding the location, time, layout, and other contextual features of the information. These shared mental models potentially increase the accuracy of the message content and reduce the need for communication about that context. Shared mental models of the
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Chapter Nine Communicating in Teams and Organizations 257
communication context differs from a shared codebook. Codebooks are symbols used to convey message content, whereas mental models are knowledge structures of the commu- nication setting. For example, a Russian cosmonaut and American astronaut might have shared mental models about the layout and features of the international space station (communication context), yet they experience poor communication because of language differences (i.e., different codebooks).
Communication Channels A central feature of the communication model is the channel or medium through which information is transmitted. There are two main types of channels: verbal and nonverbal. Verbal communication uses words, so it includes spoken or written channels. Nonverbal communication is any part of communication that does not use words. Spoken and written communication are both verbal (i.e., they both use words), but they are quite different from each other and have different strengths and weaknesses in communication effectiveness, which we discuss later in this section. Also, written communication has traditionally been much slower than spoken communication at transmitting messages, though electronic mail, Twitter tweets, and other Internet-based communication channels have significantly im- proved written communication efficiency.
INTERNET-BASED COMMUNICATION In the early 1960s, with funding from the U.S. Department of Defense, university research- ers began discussing how to collaborate better by connecting their computers through a network. Their rough vision of connected computers became a reality in 1969, in the form of the Advanced Research Projects Agency Network (ARPANET). ARPANET initially had only a dozen or so connections and was very slow and expensive by today’s standards, but it marked the birth of the Internet. Two years later, a computer engineer developing ARPANET sent the first electronic mail (e-mail) message between different computers on a network. By 1973, most communication on ARPANET was through e-mail. ARPANET was mostly restricted to U.S. Defense-funded research centers, so in 1979 two graduate students at Duke University developed a public network system, called Usenet. Usenet allowed people to post information that could be retrieved by anyone else on the network, making it the first public computer-mediated social network.14
We have come a long way since the early days of ARPANET and Usenet. Texting, instant messaging, and social media didn’t exist in organizations a dozen years ago, whereas they are now gaining popularity. However, e-mail remains the medium of choice in most workplaces.15 E-mail messages can be written, edited, and transmitted quickly. Information can be effort- lessly appended and conveyed to many people. E-mail is also asynchronous (messages are sent and received at different times), so there is no need to coordinate a communication session. With advances in computer search technology, e-mail software has also become an efficient filing cabinet.16
E-mail tends to be the preferred medium for sending well-defined information for deci- sion making. It is also central for coordinating work, though text messaging and Twitter tweets might overtake e-mail for this objective. When e-mail was introduced in the work- place more than two decades ago, it tended to increase the volume of communication and significantly altered the flow of that information within groups and throughout the organi- zation.17 Specifically, it reduced some face-to-face and telephone communication but in- creased communication with people further up the hierarchy. Some social and organizational status differences still exist with e-mail,18 but they are somewhat less apparent than in face- to-face communication. By hiding age, race, and other features, e-mail reduces stereotype biases. However, it also tends to increase reliance on stereotypes when we are already aware of the other individual’s personal characteristics.19
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258 Part Three Team Processes
Visit connect.mcgrawhill.com for activities and test questions to help you learn about issues with e-mail and other Internet-based communication.
PROBLEMS WITH E-MAIL In spite of the wonders of e-mail, anyone who has used this communication medium knows that it has its limitations. Here are the top four complaints:
Poor Medium for Communicating Emotions People rely on facial expressions and other nonverbal cues to interpret the emotional meaning of words; e-mail lacks this parallel communication channel. Indeed, people consistently and significantly underestimate the de- gree to which they understand the emotional tone of e-mail messages.20 Senders try to clarify the emotional tone of their messages by using expressive language (“Wonderful to hear from you!”), highlighting phrases in boldface or quotation marks, and inserting graphic faces (called emoticons or “smileys”) to represent the desired emotion. Recent studies suggest that writers are getting better at using these emotion symbols. Still, they do not replace the full complexity of real facial expressions, voice intonation, and hand movements.21
70% of employees surveyed in 32 countries say they prefer face-to-face contact rather than by phone or email.
34% of employees surveyed in major UK companies (employing 785,000 people) say that by enabling access to work outside work hours, communication technology is a major source of stress (2nd highest stressor after workload/long hours).
77% of 120,000 employees polled in 31 countries identify active listening as a critical skill for job success (2nd only to cooperation/teamwork)
40% of employees surveyed in 32 countries say their employer expects them to be available 24/7 (i.e., communicate with coworkers at any time day or night).67%
of 600 members of the Chicago business community say that online virtual meeting rooms will become more important in the next 5 to 10 years.
22% of American employees polled say they are easily distracted by email and phone calls at work.
More High-Tech Communication, but High-Touch is Still Valued
Randstad. “Personal Contact Preferred (Randstad Workmonitor).” Amsterdam, The Netherlands: Randstad, 2012; Ernst & Young. “Work: No Longer Business as Usual.” Chicago: Ernst & Young, 2013; Kelly Services. “Career Development and Upskilling (Kelly Global Workforce Index).” Troy, MI: Kelly Services, 2013; Towers Watson. “Health, Wellbeing and Productivity.” London: Towers Watson, 2013.
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Chapter Nine Communicating in Teams and Organizations 259
Reduces Politeness and Respect E-mail messages are often less diplomatic than written letters. Indeed, the term “flaming” has entered our language to describe e-mail and other electronic messages that convey strong negative emotions to the receiver. People who receive e-mail are partly to blame because they tend to infer a more negative or neutral in- terpretation of the e-mail than was intended by the sender.23 Even so, e-mail flame wars occur mostly because senders are more likely to send disparaging messages by e-mail than other communication channels. They can post e-mail messages before their emotions sub- side, whereas the sender of a traditional memo or letter would have time for sober second thoughts. A second reason is that e-mail has low social presence (it is impersonal); people are more likely to communicate messages through impersonal channels that they would never say in face-to-face conversation. Fortunately, research has found that flaming decreases as teams move to later stages of development and when explicit norms and rules of communi- cation are established.24
Poor Medium for Ambiguous, Complex, and Novel Situations E-mail is usually satisfactory for well-defined situations, such as giving basic instructions or present- ing a meeting agenda, but it can be cumbersome and dysfunctional in ambiguous, complex, and novel situations. As we will describe later in this section, these circumstances require communication channels that transmit a larger volume of information with more rapid
Good-Bye E-Mail, Hello Social Media! Atos Origin is at war with e-mail. Executives at the Paris-based global information technology consulting firm believe the vol- ume of e-mail transmitted around the company has created “information pollution” that stifles productivity and under- mines employee well-being. “We are producing data on a mas- sive scale that is fast polluting our working environments and also encroaching into our personal lives,” says Atos Origin chief executive Thierry Breton. Atos has proof that e-mail is undermining productivity and employee morale. After monitoring their e-mail traffic for one week, 300 Atos employees discovered they had collectively sent or received 85,000 messages. Atos surveys report that employees spend more than one-quarter of their time manag- ing e-mail and that most staff consider e-mail a waste of their time. The company estimates that only about 10 percent of e-mail messages are useful, and that 18 percent are spam. Some companies have fought e-mail overload by banning them for one day each week. Unfortunately, these “e-mail-free Fridays” often produce “e-mail-overload Mondays.” Atos Ori- gin’s strategy is more radical: It plans to be an e-mail-free orga- nization within the next few years. The company will encourage its 50,000 staff to rely on other communication media— particularly instant messaging, web conferences, and an enterprise-strength social media site—to share ideas, engage in communities, and have virtual team meetings. “The way we work is changing—and so are the tools available for us to carry out that work,” says Atos senior vice president Lee Timmins. “Enterprise social networks and software are a far better way of encouraging collaboration and releasing valuable information from individual inboxes.”
Atos began weaning itself off e-mail a couple of years ago. Last year, some of its projects were completed without any e-mail communication. “We didn’t switch e-mail off overnight, but are easing it out gradually and using advocates to spur viral change,” Timmins explains. Atos vice president Marc-Henri Desportes also points out that the transition has been easier because younger employees are switching away from e-mail or never adopted it in the first place. “These people do not use e-mail any more,” says Desportes. “They use social media tools.”22
global connections 9.1
Paris-based information technology company Atos Origin is replacing e-mail completely with other Internet-based communication tools.
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260 Part Three Team Processes
feedback. In other words, when the issue gets messy, stop e-mailing and start talking, prefer- ably face-to-face.
Contributes to Information Overload E-mail contributes to information over- load.25 Approximately 20 trillion e-mails (excluding 70 trillion spam e-mails) are now trans- mitted annually around the world, up from just 1.1 trillion in 1998. The e-mail glut occurs because messages are created and copied to many people without much effort. The number of e-mail messages will probably decrease as people become more familiar with it; until then, e-mail volume continues to rise.
WORKPLACE COMMUNICATION THROUGH SOCIAL MEDIA Although e-mail dominates most workplace communication, it may eventually be overtaken by emerging forms of social media. Social media are Internet- or mobile-based channels that allow users to generate and interactively share information. The better-known social media include Facebook, LinkedIn, Twitter, Wikipedia, and Typepad (blogs), but there are many others. For instance, the opening case study to this chapter described the social media plat- form that Infosys has launched for its employees.
Unlike traditional websites that merely “push” information from the creator to the audi- ence, social media are more conversational and reciprocally interactive between sender and receiver, resulting in a sense of community.26 Social media typically enable users to develop a public identity through the social media content. Social media are “social” because they encourage the formation of communities through links, interactive conversations, and, for some platforms such as wikis, common space for collaborative content development. The audience can become participants in the conversation by contributing feedback and linking someone else’s content to their own social media spaces.
One recent model suggests that social media serve several functions: presenting the individual’s identity, enabling conversations, sharing information, sensing the pres- ence of others in the virtual space, maintaining relationships, revealing reputation or status, and supporting communities (see Exhibit 9.2).27 For instance, Facebook has a
Identity
Presence
Sharing
Reputation Conversations
Relationships
Groups
Identity
Presence
Sharing
Reputation Conversations
Relationships
Groups
Wikis Facebook
Source: Based on J. H. Kietzmann, K. Hermkens, I. P. McCarthy, and B. S. Silvestre, (2011), “Social Media? Get Serious! Understanding the Functional Building Blocks of Social Media,” Business Horizons, 54, no. 3, pp. 241–251.
EXHIBIT 9.2 Functions of Communicating Through Social Media
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Chapter Nine Communicating in Teams and Organizations 261
strong emphasis on maintaining relationships but a relatively low emphasis on sharing information or forming communities (groups). Wikis instead focus on sharing infor- mation or forming communities but place a much lower emphasis on presenting the user’s identity or reputation.
A few studies conclude (with caution) that social media offer considerable versatility and potential in the workplace.28 Even so, companies have been reluctant to introduce these communication tools, mainly because they lack knowledge, staff/resources, and technical support to put them into practice.29 Indeed, a common practice is to simply ban employee access to social media (usually after discovering excess employee activity on Facebook), with- out thinking through the potential of this type of communication channel.
NONVERBAL COMMUNICATION Nonverbal communication includes facial gestures, voice intonation, physical distance, and even silence. This communication channel is necessary where noise or physical distance prevents effective verbal exchanges and the need for immediate feedback precludes written communication. But even in quiet face-to-face meetings, most information is communi- cated nonverbally. Rather like a parallel conversation, nonverbal cues signal subtle informa- tion to both parties, such as reinforcing their interest in the verbal conversation or demonstrating their relative status in the relationship.31
Nonverbal communication differs from verbal (i.e., written and spoken) communication in a couple of ways. First, it is less rule-bound than verbal communication. We receive con- siderable formal training on how to understand spoken words but very little on how to un- derstand the nonverbal signals that accompany those words. Consequently, nonverbal cues are generally more ambiguous and susceptible to misinterpretation. At the same time, many facial expressions (such as smiling) are hardwired and universal, thereby providing the only reliable means of communicating across cultures.
The other difference between verbal and nonverbal communication is that the former is typically conscious, whereas most nonverbal communication is automatic and noncon- scious. We normally plan the words we say or write, but we rarely plan every blink, smile, or other gesture during a conversation. Indeed, as we just mentioned, many of these facial expressions communicate the same meaning across cultures because they are hardwired, nonconscious responses to human emotions.33 For example, pleasant emotions cause the brain center to widen the mouth, whereas negative emotions produce constricted facial expressions (squinting eyes, pursed lips).
Emotional Contagion One of the most fascinating aspects of nonverbal communi- cation is emotional contagion, which is the automatic process of “catching” or sharing an- other person’s emotions by mimicking that person’s facial expressions and other nonverbal behavior. Technically, human beings have brain receptors that cause them to mirror what they observe. In other words, to some degree our brain causes us to act as though we are the person we are watching.34
Consider what happens when you see a coworker accidentally bang his or her head against a filing cabinet. Chances are, you wince and put your hand on your own head as if you had hit the cabinet. Similarly, while listening to someone describe a positive event, you tend to smile and exhibit other emotional displays of happiness. While some of our nonverbal communica- tion is planned, emotional contagion represents nonconscious behavior—we automatically mimic and synchronize our nonverbal behaviors with those of other people.35
Emotional contagion influences communication and social relationships in three ways.36 First, mimicry provides continuous feedback, communicating that we under- stand and empathize with the sender. To consider the significance of this, imagine em- ployees remaining expressionless after watching a coworker bang his or her head! The lack of parallel behavior conveys a lack of understanding or caring. A second function is that mimicking the nonverbal behaviors of other people seems to be a way of receiving
emotional contagion
The nonconscious process of “catching” or sharing another person’s emotions by mimicking that person’s facial expressions and other nonverbal behavior.
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262 Part Three Team Processes
emotional meaning from those people. If a coworker is angry with a client, your ten- dency to frown and show anger while listening helps you to experience that emotion more fully. In other words, we receive meaning by expressing the sender’s emotions, as well as by listening to the sender’s words.
The third function of emotional contagion is to fulfill the drive to bond that we men- tioned earlier in this chapter and introduced in Chapter 5. Bonding develops through each person’s awareness of a collective sentiment. Through nonverbal expressions of emotional contagion, people see others share the same emotions that they feel. This strengthens rela- tions among team members as well as between leaders and followers by providing evidence of their similarity.
Choosing the Best Communication Channel Which communication channel is most appropriate in a particular situation? Two important sets of factors to consider are (a) social acceptance and (b) media richness.
SOCIAL ACCEPTANCE Social acceptance refers to how well the communication medium is approved and supported by the organization, teams, and individuals involved in the exchange.37 One factor in social
Top Ten Body Language Mistakes in Job Interviews32
Percentage of employers surveyed in the United Kingdom who reported the biggest body language turnoffs in job interviews. Similar results were found in a U.S. survey one year earlier.
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Chapter Nine Communicating in Teams and Organizations 263
acceptance is organizational, team, and cultural norms regarding the use of specific commu- nication channels. Norms partly explain why face-to-face meetings are daily events among staff in some firms, whereas computer-based video conferencing (such as Skype) and Twitter tweets are the media of choice in other organizations. Studies report that national culture plays an important role in preferences for specific communication channels.38 For instance, when communicating with people further up the hierarchy, Koreans are much less likely than Americans to use e-mail, because this medium is less respectful of the superior’s status. Other research has found that the preference for e-mail depends on the culture’s emphasis on context, time, and space in social relationships.
A second social acceptance factor is individual preferences for specific communication channels.39 You may have noticed that some coworkers ignore (or rarely check) voice mail, yet they quickly respond to text messages or Twitter tweets. These preferences are due to person- ality traits, as well as previous experience and reinforcement with particular channels.
A third social acceptance factor is the symbolic meaning of a channel.40 Some commu- nication channels are viewed as impersonal, whereas others are more personal; some are considered professional, whereas others are casual; some are “cool,” whereas others are old-fashioned. For instance, phone calls and other synchronous communication channels convey a greater sense of urgency than do text messages and other asynchronous channels. The importance of a channel’s symbolic meaning is perhaps most apparent in stories about managers who use e-mails or text messages to inform employees that they are fired or laid off. These communication events make headlines because e-mail and text messages are considered inappropriate (too impersonal) for transmission of that particular information.41
MEDIA RICHNESS Along with social acceptance, people need to determine the best level of media richness for their message. Media richness refers to the medium’s data-carrying capacity—the volume and variety of information that can be transmitted during a specific time.42 Exhibit 9.3 illus- trates various communication channels arranged in a hierarchy of richness, with face-to-face interaction at the top and lean data-only reports at the bottom. A communication channel has high richness when it is able to convey multiple cues (such as both verbal and nonverbal information), allows timely feedback from receiver to sender, allows the sender to customize the message to the receiver, and makes use of complex symbols (such as words and phrases with multiple meanings).
Face-to-face communication is at the top of media richness, because it allows us to communicate both verbally and nonverbally at the same time, to get feedback almost imme- diately from the receiver, to quickly adjust our message and style, and to use complex lan- guage such as metaphors and idioms (e.g., “spilling the beans”).
According to media richness theory, rich media are better than lean media when the communication situation is nonroutine and ambiguous. In nonroutine situations (such as an unexpected and unusual emergency), the sender and receiver have little common experi- ence, so they need to transmit a large volume of information with immediate feedback. Lean media work well in routine situations because the sender and receiver have common expec- tations through shared mental models. Ambiguous situations require rich media because the parties must share large amounts of information with immediate feedback to resolve multi- ple and conflicting interpretations of their observations and experiences.43 Choosing the wrong medium reduces communication effectiveness. When the situation is routine or clear, using a rich medium—such as holding a special meeting—would seem like a waste of time. On the other hand, if a unique and ambiguous issue is handled through e-mail or another lean medium, issues take longer to resolve, and misunderstandings are more likely.
Exceptions to Media Richness Theory Research generally supports media rich- ness theory for traditional channels (face-to-face, written memos, etc.). However, the model
media richness
A medium’s data-carrying capacity, that is, the volume and variety of information that can be transmitted during a specific time.
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264 Part Three Team Processes
Rich medium
Communication channel richness
Communication environment
Lean medium
Routine/ clear
Nonroutine/ ambiguous
Overloaded zone (medium provides too much
data-carrying capacity)
Oversimplified zone (medium provides too little
data-carrying capacity)Financial statements
Newsletters
Weblogs
Telephone
Instant messaging
Video conference
Face-to-face
doesn’t fit reality nearly as well when electronic communication channels are studied.44 Three factors seem to explain why electronic channels may have more media richness than the theory proposes:
1. Ability to multi-communicate. It is usually difficult (as well as rude) to communicate face-to-face with someone while simultaneously transmitting messages to someone else using another medium. Most information technologies, on the other hand, require less social etiquette and attention, so employees can easily engage in two or more commu- nication events at the same time. In other words, they can multi-communicate.46 For example, people routinely scan web pages while carrying on telephone conversations. Some write text messages to a client while simultaneously listening to a discussion at a large meeting. People multitask less efficiently than they think they do, but some are good enough that they likely exchange as much information through two or more lean electronic media as through one high media richness channel.
2. Communication proficiency. Earlier in this chapter we explained that communication effectiveness is partially determined by the sender’s competency and motivation in the communication channel. People with higher proficiency can “push” more information through the channel, thereby increasing the channel’s information flow. Experienced smartphone users, for instance, can whip through messages in a flash, whereas new users struggle to type notes and organize incoming messages. In contrast, there is less variation in the ability to communicate through casual conversation and other natural channels because most of us develop good levels of proficiency throughout life and possibly through hardwired evolutionary development.47
EXHIBIT 9.3 Media Richness Hierarchy
Source: Based on R. Lengel and R. Daft, “The Selection of Communication Media as an Executive Skill,” Academy of Manage- ment Executive 2, no. 3 (August, 1988), p. 226; R. L. Daft and R. H. Lengel, “Information Richness: A New Approach to Managerial Behavior and Organization Design,” Research in Organizational Behavior (1984), p. 199.
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Chapter Nine Communicating in Teams and Organizations 265
3. Social presence effects. Channels with high media richness tend to have more social presence; that is, the participants experience the stronger physical presence of each other.48 However, high social presence also sensitizes both parties to their relative status and self-presentation, which can distort or divert attention away from the message.49 Face-to-face communication has very high media richness, yet its high social presence can disrupt the efficient flow of information through that medium. During a personal meeting with the company’s CEO, for example, you might con- centrate more on how you come across than on what the CEO is saying to you. In other words, the benefits of channels with high media richness may be offset by their social presence distractions, whereas lean media have much less social presence to distract or distort the transmitted information.
COMMUNICATION CHANNELS AND PERSUASION Some communication channels are more effective than others for persuasion, that is, changing another person’s beliefs and attitudes. Studies support the long-held view that spoken communication, particularly face-to-face interaction, is more persuasive than e-mails, websites, and other forms of written communication. There are three main reasons for this persuasive effect.50 First, spoken communication is typically accompanied by non- verbal communication. People are persuaded more when they receive both emotional and logical messages, and the combination of spoken with nonverbal communication provides this dual punch. A lengthy pause, raised voice tone, and (in face-to-face interaction) ani- mated hand gestures can amplify the emotional tone of the message, thereby signaling the vitality of the issue.
A second reason conversations are more persuasive is that spoken communication offers the sender high-quality immediate feedback about whether the receiver understands and accepts the message (i.e., is being persuaded). This feedback allows the sender to adjust the content and emotional tone of the message more quickly than with written communication. A third reason is that people are persuaded more under conditions of high social presence than low social presence. The sender can more easily monitor the receiver’s listening in face- to-face conversations (high social presence), so listeners are more motivated to pay attention
persuasion
The use of facts, logical arguments, and emotional appeals to change another person’s beliefs and attitudes, usually for the purpose of changing the person’s behavior.
Until recently, Doug Stuart was skeptical that communication technology would come anywhere close to the media richness of a meeting with everyone in the same room. “If you had asked me that four years ago I would have rolled my eyes and said it is never going to work,” says the chief information officer at IBM New Zealand. Today, technology quality, together with the ability to multi- communicate during meetings, has dramatically improved the communication experience of virtual meetings. “I’m looking at my screen and seeing their presentations and hearing their voices,” says Stuart while he virtually attended a meeting of IBM colleagues in the United States from his workplace in Wellington. “You have the ability to raise your hand, send real time text messaging to the chair of the meeting . . . and blogs are active during these sessions as well.”45
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266 Part Three Team Processes
and consider the sender’s ideas. When people receive persuasion attempts through a website, e-mail, or other source of written communication, they experience a higher degree of ano- nymity and psychological distance from the persuader. These conditions reduce the motiva- tion to think about and accept the persuasive message.
Although spoken communication tends to be more persuasive, written communication can also persuade others to some extent. Written messages have the advantage of presenting more technical detail than can occur through conversation. This factual information is valu- able when the issue is important to the receiver. Also, people experience a moderate degree of social presence in written communication when they are exchanging messages with close associates, so messages from friends and coworkers can be persuasive.
Communication Barriers (Noise) Despite the best intentions of sender and receiver to communicate, several barriers (called “noise” earlier in Exhibit 9.1) inhibit the effective exchange of information. As author George Bernard Shaw once wrote, “The greatest problem with communication is the illu- sion that it has been accomplished.” One barrier is the imperfect perceptual process of both sender and receiver. As receivers, we don’t listen as well as senders assume, and our needs and expectations influence what signals get noticed and ignored. We aren’t any better as senders, either. Some studies suggest that we have difficulty stepping out of our own perspectives and stepping into the perspectives of others, so we overestimate how well other people under- stand the message we are communicating.51
Language issues can be huge sources of communication noise because sender and receiver might not have the same codebook. They might not speak the same language or might have different meanings for particular words and phrases. The English language (among others) also has built-in ambiguities that cause misunderstandings. Consider the question “Can you close the door?” You might assume the sender is asking whether shutting the door is permit- ted. However, the question might be asking whether you are physically able to shut the door or whether the door is designed such that it can be shut. In fact, this question might not be a question at all; the person could be politely telling you to shut the door.52
The ambiguity of language isn’t always dysfunctional noise.53 Corporate leaders some- times purposively use obscure language to reflect the ambiguity of the topic or to avoid un-
wanted emotional responses produced from more specific words. They might use metaphors to represent an abstract vision of the company’s future or use obtuse phrases such as “rightsizing” and “restructuring” to obscure the underlying message that people would be fired or laid off. One study reported that people rely on more ambiguous language when communicating with people who have different values and beliefs. In these situations, ambigu- ity minimizes the risk of conflict.54
Jargon—specialized words and phrases for specific occupations or groups—is usually designed to improve communication effi- ciency. However, it is a source of communication noise when transmitted to people who do not possess the jargon codebook. Furthermore, people who use jargon excessively put themselves in an unflattering light. For example, former Home Depot and Chrysler CEO Robert Nardelli announced at one news confer- ence: “I’m blessed to have individuals with me who can take areas of responsibility and do vertical dives to really get the granularity and make sure that we’re coupling horizontally across those func- tions so that we have a pure line of sight toward the customer.” Business journalists weren’t impressed, even if they did figure out what Nardelli meant.55
LO 9-4
Credit: Copyright © Ted Goff.
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Chapter Nine Communicating in Teams and Organizations 267
Employee’s information processing capacity
Episodes of information
overload
Information load
Time
information processing capacity
Time
EXHIBIT 9.4
Dynamics of Information Overload
information overload
A condition in which the volume of information received exceeds the person’s capacity to process it.
Another source of noise in the communication process is the tendency to filter messages. Filtering may involve deleting or delaying negative information or using less harsh words so the message sounds more favorable.56 Filtering is less likely to occur when corporate leaders create a “culture of candor.” This culture develops when leaders themselves communicate truthfully, seek out diverse sources for information, and protect and reward those who speak openly and truthfully.57
INFORMATION OVERLOAD Start with a daily avalanche of e-mail, then add in cell phone calls, text messages, PDF file downloads, web pages, hard-copy documents, some Twitter tweets, blogs, wikis, and other sources of incoming information. Altogether, you have created a perfect recipe for information overload.58 As Exhibit 9.4 illustrates, information overload occurs whenever the job’s infor- mation load exceeds the individual’s capacity to get through it. Employees have a certain information processing capacity—the amount of information that they are able to process in a fixed unit of time. At the same time, jobs have a varying information load—the amount of information to be processed per unit of time. Information overload creates noise in the com- munication system because information gets overlooked or misinterpreted when people can’t process it fast enough. The result is poorer quality decisions, as well as higher stress.59
Information overload problems can be minimized by increasing our information process- ing capacity, reducing the job’s information load, or through a combination of both. Studies suggest that employees often increase their information processing capacity by temporarily reading faster, scanning through documents more efficiently, and removing distractions that slow information processing speed. Time management also increases information processing capacity. When information overload is temporary, information processing capacity can in- crease by working longer hours. Information load can be reduced by buffering, omitting, and summarizing. Buffering involves having incoming communication filtered, usually by an assistant. Omitting occurs when we decide to overlook messages, such as using software rules to redirect e-mails from distribution lists to folders that we never look at. An example of summarizing would be where we read executive summaries rather than the full report.
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268 Part Three Team Processes
Cross-Cultural and Gender Communication Increasing globalization and cultural diversity have brought about more cross-cultural com- munication issues.60 Voice intonation is one form of cross-cultural communication barrier. How loudly, deeply, and quickly people speak varies across cultures, and these voice intona- tions send secondary messages that have different meanings in different cultures.
As mentioned earlier, language is an obvious cross-cultural communication challenge. Words are easily misunderstood in verbal communication, either because the receiver has a limited vocabulary or the sender’s accent distorts the usual sound of some words. In one cross-cultural seminar, for example, participants at German electronics company Siemens were reminded that a French coworker might call an event a “catastrophe” as a casual exag- geration, whereas someone in Germany usually interprets this word literally as an earth- shaking event. Similarly, KPMG staff from the United Kingdom sometimes referred to another person’s suggestions as “interesting.” They had to clarify to their German colleagues that “interesting” might not be complimenting the idea.61
Communication includes silence, but its use and meaning varies from one culture to another.62 One study estimated that silence and pauses represented 30 percent of conversa- tion time between Japanese doctors and patients, compared with only 8 percent of the time between American doctors and patients. Why is there more silence in Japanese conversa- tions? One reason is that interpersonal harmony and saving face are more important in Japanese culture, and silence is a way of disagreeing without upsetting that harmony or of- fending the other person.63 In addition, silence symbolizes respect and indicates that the listener is thoughtfully contemplating what has just been said.64 Empathy is very important in Japan, and this shared understanding is demonstrated without using words. In contrast, most people in the United States and many other cultures view silence as a lack of commu- nication and often interpret long breaks as a sign of disagreement.
Conversational overlaps also send different messages in different cultures. Japanese people usually stop talking when they are interrupted, whereas talking over the other per- son’s speech is more common in Brazil, France, and some other countries. The difference in communication behavior is, again, due to interpretations. Talking while someone is speaking to you is considered quite rude in Japan, whereas Brazilians and French are more likely to interpret this action as a signal of the person’s interest and involvement in the conversation.
NONVERBAL DIFFERENCES ACROSS CULTURES Nonverbal communication represents another potential area for misunderstanding across cultures. Many nonconscious or involuntary nonverbal cues (such as smiling) have the same meaning around the world, but deliberate gestures often have different interpreta- tions. For example, most of us shake our head from side to side to say “No,” but a variation of head shaking means “I understand” to many people in India. Filipinos raise their eye- brows to give an affirmative answer, yet Arabs interpret this expression (along with clicking one’s tongue) as a negative response. Most Americans are taught to maintain eye contact with the speaker to show interest and respect, whereas some North American native groups learn at an early age to show respect by looking down when an older or more senior person is talking to them.66
Visit connect.mcgrawhill.com for activities and test questions to help you learn about cross-cultural and nonverbal communication.
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Chapter Nine Communicating in Teams and Organizations 269
GENDER DIFFERENCES IN COMMUNICATION Men and women have similar communication practices, but there are subtle distinctions that can occasionally lead to misunderstanding and conflict (see Exhibit 9.5).67 One distinc- tion is that men are more likely than women to view conversations as negotiations of relative status and power. They assert their power by directly giving advice to others (e.g., “You should do the following”) and using combative language. There is also evidence that men dominate the talk time in conversations with women, as well as interrupt more and adjust their speaking style less than do women.
Men engage in more “report talk,” in which the primary function of the conversation is impersonal and efficient information exchange. Women also report talk, particularly when conversing with men, but conversations among women have a higher incidence of relation- ship building through “rapport talk.” Women make more use of indirect requests (“Do you think you should. . .”), apologize more often, and seek advice from others more quickly than do men. Finally, research fairly consistently indicates that women are more sensitive than men to nonverbal cues in face-to-face meetings.68 Together, these conditions can create com- munication conflicts. Women who describe problems get frustrated that men offer advice rather than rapport, whereas men become frustrated because they can’t understand why women don’t appreciate their advice.
Gender differences are also emerging in the use of social media to communicate.69 Spe- cifically, women are more likely to visit social networking sites like Facebook and Twitter, spend more time online, and click on more web pages than their male counterparts. Women
Politely Waiting for Some Silence65
Miho Aizu has attended many meetings where partici- pants communicated in English. Until recently, the manager at Accenture in Japan thought she communicated well in those sessions. But in a recent training program conducted by the professional services firm, Aizu learned that Japanese cultural norms held back her involvement in cross-cultural business conversations. One such problem was that she tends to be too polite in waiting for others to finish talking. “I was told I needed to jump into discussions rather than wait until everyone had said what they wanted to say,” says Aizu. Managers from North America, South America, the Middle East, and most of Europe seldom allow silence to occur, so Aizu and other Japanese participants are often left out of the conversation. Aizu also realized that her involvement is held back by the Japanese tendency to be overly self-conscious about imperfect language skills. “During the team discussions, there were many things I wanted to say, but I felt I had to brush up my English language and presentation skills,” Aizu admits. In contrast, Accenture managers from many other non-English countries speak up in spite of their broken English. In Japan, speaking well and waiting for others to finish are signs of respect and cultural refinement. But in meetings with managers across most other cultures, this lack of communica- tion sends a different message. “There are many people who come to me and say they don’t know what Japanese people are thinking,” says Accenture Japan president Chikamoto Hodo. “Our people [at Accenture] are more talkative than
most Japanese, but they still have a difficult time communicat- ing with foreigners.” Accenture wants to develop leaders who can communicate effectively across its global operations, so it has developed special programs that coach its managers to engage in better conversations with colleagues and clients across cultures. While Accenture participants learn about Japanese communication practices, Aizu and other Accenture staff in Japan are coached to become more active communicators. “After various training programs, I am more able to say what I need to say, without worrying too much about the exact words,” says Satoshi Tanaka, senior manager of human resources at Accenture Japan.
global connections 9.2
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270 Part Three Team Processes
are also more active participants in photo-sharing websites. Globally, women are outpacing men in signing up for Twitter accounts and are more active Twitter users. Their reasons for using this communication channel also differ. Women tend to use Twitter as a conversa- tional rather than functional medium. Overall, women spend an average of 24.8 hours per month online, whereas men spend 22.9 hours per month online.
Improving Interpersonal Communication Effective interpersonal communication depends on the sender’s ability to get the message across and the receiver’s performance as an active listener. In this section, we outline these two essential features of effective interpersonal communication.
WHEN MEN COMMUNICATE WHEN WOMEN COMMUNICATE
EXHIBIT 9.5 Gender Differences in Communication
GETTING YOUR MESSAGE ACROSS This chapter began with the statement that effective communication occurs when the other person receives and understands the message. This is more difficult to accomplish than most people believe. To get your message across to the other person, first, you need to empathize with the receiver, such as being sensitive to words that may be ambiguous or trigger the wrong emotional response. Second, be sure that you repeat the message, such as by rephrasing the key points a couple of times. Third, your message competes with other messages and noise, so find a time when the receiver is less likely to be distracted by these other matters. Finally, if you are communicating bad news or criticism, focus on the problem, not the person.
Visit connect.mcgrawhill.com for activities and test questions to help you learn about interpersonal communication.
LO 9-5
• Report talk—giving advice, assert power
• Give advice directly
• Dominant conversation style
• Apologize less often
• Less sensitive to nonverbal cues
• Rapport talk—relationship building
• Give advice indirectly
• Flexible conversation style
• Apologize more often
• More sensitive to nonverbal cues
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Chapter Nine Communicating in Teams and Organizations 271
ACTIVE LISTENING General Electric Company (GE) recently revised its famous leadership development pro- gram to align better with the cultural diversity of its employees and emerging leaders. One discovery in past programs was that U.S. managers were good at talking but didn’t always give the same priority to active listening. GE “now majors people on listening,” says Susan Peters, GE’s chief learning officer. “It’s something we have to really work on, to equal the playing field between our American leaders and our non-American leaders.”70
Almost 2,000 years ago, the Greek philosopher Epictetus wrote: “Nature gave us one tongue, but two ears, so we may listen twice as much as we speak.”71 GE and other compa- nies are increasingly applying this sage advice to leadership development. Active listening is a process of actively sensing the sender’s signals, evaluating them accurately, and responding appropriately. These three components of listening—sensing, evaluating, and responding— reflect the listener’s side of the communication model described at the beginning of this chapter. Listeners receive the sender’s signals, decode them as intended, and provide appro- priate and timely feedback to the sender (see Exhibit 9.6). Active listeners constantly cycle through sensing, evaluating, and responding during the conversation and engage in various activities to improve these processes.72
• Sensing. Sensing is the process of receiving signals from the sender and paying atten- tion to them. Active listeners improve sensing in three ways. First, they postpone evaluation by not forming an opinion until the speaker has finished. Second, they avoid interrupting the speaker’s conversation. Third, they remain motivated to listen to the speaker.
• Evaluating. This component of listening includes understanding the message meaning, evaluating the message, and remembering the message. To improve their evaluation of the conversation, active listeners empathize with the speaker—they
Are you an active listener? Visit connect.mcgrawhill.com to assess your active listening skill, as well as assist your learning about interpersonal communication.
• Postpone evaluation • Avoid interruptions • Maintain interest
Active listening
Sensing
• Empathize • Organize information
Evaluating
• Show interest • Clarify the message
Responding
EXHIBIT 9.6
Active Listening Process and Strategies
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272 Part Three Team Processes
try to understand and be sensitive to the speaker’s feelings, thoughts, and situation. Evaluation also improves by organizing the speaker’s ideas during the communica- tion episode.
• Responding. This third component of listening involves providing feedback to the sender, which motivates and directs the speaker’s communication. Active listeners accomplish this by maintaining sufficient eye contact and sending back channel signals (e.g., “I see”), both of which show interest. They also respond by clarifying the message and rephrasing the speaker’s ideas at appropriate breaks (“So you’re saying that . . . ?”).
Improving Communication Throughout the Hierarchy So far, we have focused on micro-level issues in the communication process, namely, sending and receiving information between two employees or the informal exchanges of information across several people. But in this era in which knowledge is competitive advantage, corporate leaders also need to maintain an open flow of communication up, down, and across the entire organization. In this section, we discuss three organization-wide communication strategies: workspace design, internet-based communication, and direct communication with top management.
WORKSPACE DESIGN To improve information sharing and create a more sociable work environment, Intel has torn down the cubicle walls at its microchip design center near Portland, Oregon. “We real- ized that we were inefficient and not as collaborative as we would have liked,” acknowledges Neil Tunmore, Intel’s director of corporate services. The refurbished building includes more shared space where employees set up temporary work areas. There are also more meeting rooms where employees can collaborate in private.73
Intel and many other companies are improving communication by redesigning the work- space and employee territorial practices in that space.74 The location and design of hallways, offices, cubicles, and communal areas (cafeterias, elevators) all shape whom we speak to, as well as the frequency of that communication. Although these open space arrangements in- crease the amount of face-to-face communication, they also potentially produce more noise, distractions, and loss of privacy.75 Employees at one eBay call center experienced too much distraction from their open space work area, so they agreed to hush up when coworkers draped a colorful bandana on their desk lamps or around their heads.76 Others claim that open work spaces have minimal noise problems because employees tend to speak more softly and white noise technology blocks out most voices. Still, the challenge is to increase social interaction without these stressors.
Another workspace strategy is to cloister employees into team spaces but also encourage sufficient interaction with people from other teams. Pixar Animation Studios constructed its campus in Emeryville, California, with these principles in mind. The buildings encourage communication among team members. At the same time, the campus encourages happen- stance interactions with people on other teams. Pixar executives call this the “bathroom effect,” because team members must leave their isolated pods to fetch their mail, have lunch, or visit the restroom.77
INTERNET-BASED ORGANIZATIONAL COMMUNICATION For decades, employees received official company news through hard-copy newsletters and magazines. Some firms still use these communication devices, but most have supple- mented or replaced them completely with web-based sources of information. The tradi- tional company magazine is now typically published on web pages or distributed in PDF
LO 9-6
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Chapter Nine Communicating in Teams and Organizations 273
format. The advantage of these e-zines is that company news can be prepared and distrib- uted quickly.
Employees are increasingly skeptical of information that has been screened and packaged by management, so a few companies such as IBM are encouraging employees to post their own news on internal blogs and wikis. Wikis are collaborative web spaces in which anyone in a group can write, edit, or remove material from the website. Wikipedia, the popular online encyclopedia, is a massive public example of a wiki. IBM’s WikiCentral now hosts more than 20,000 wiki projects involving 100,000 employees. The accuracy of wikis de- pends on the quality of participants, but IBM experts say that errors are quickly identified by IBM’s online community. Another concern is that wikis have failed to gain employee support, likely because wiki involvement takes time, and the company does not reward or recognize those who provide this time to wiki development.79
DIRECT COMMUNICATION WITH TOP MANAGEMENT During the great financial crisis, employee satisfaction scores at the U.S. Department of Transportation were among the lowest levels in the federal government. U.S. Secretary of Transportation Ray LaHood has improved that situation through more open communica- tion and other management practices. “This boost in employee satisfaction is no accident,” says LaHood. “Since joining DOT, I initiated town hall meetings with employees around the country, and I have also held regular open-door office hours where employees are free to let me know what’s on their minds.”80
The lesson from LaHood’s actions is that senior executives need to meet directly with employees and other stakeholders to improve morale, as well as transmit and receive infor- mation fully and meaningfully. Town hall meetings are mostly top-down communication, but the CEO’s presentation is much more credible and personal than a video recording or written memo, and employees have the opportunity to ask questions. Another strategy is for executives to hold roundtable forums to hear opinions from a representation of staff about various issues. At the departmental level, some companies hold daily or weekly “huddles”—brief, stand-up meetings in which staff and their managers discuss goals and hear good news stories.
GlaxoSmithKline (GSK) has transformed its traditional offices around the United States to open workspace arrangements. American employees at the London-based pharmaceutical company now work at shared tables in “neighborhoods” with coworkers in similar jobs or assigned to the same project. Electronic files stored on central servers have replaced most hard copy documents; phones are built into the laptop computers. The new work arrangement has dramatically increased face-to- face communication and cross- pollination of ideas. It also significantly reduced the amount of workspace and e-mail communication. However, the new work arrangements have created some problems. “There were a lot of distractions, and it was hard to stay focused,” complained one GSK employee soon after moving to the company’s new open-space work center in Raleigh, North Carolina.78
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274 Part Three Team Processes
A less formal approach to direct communication is management by walking around (MBWA). Coined by people at Hewlett-Packard four decades ago, this practice is essentially senior executives getting out of their offices and casually chatting with employees on a daily or regular basis. Brian Scudamore, founder and CEO of 1-800-Got-Junk?, takes MBWA one step further. “I don’t have my own office, and I very often move around to different departments for a day at a time,” says Scudamore.81
These direct communication strategies potentially minimize filtering, because execu- tives listen directly to employees. They also help executives acquire a deeper meaning and quicker understanding of internal organizational problems. A third benefit of direct com- munication is that employees might have more empathy for decisions made further up the corporate hierarchy.
Communicating Through the Grapevine Organizational leaders may try their best to quickly communicate breaking news to employ- ees through e-mails, Twitter tweets, and other direct formal channels, but employees still rely to some extent on the corporate grapevine. The grapevine is an unstructured and informal network founded on social relationships rather than organizational charts or job descriptions. What do employees think about the grapevine? Surveys of employees in two firms—one in Florida, the other in California—showed that almost all employees use the grapevine, but very few of them prefer this source of information. The Californian survey also reported that only one-third of employees believe grapevine information is credible. In other words, employees turn to the grapevine when they have few other options.82
GRAPEVINE CHARACTERISTICS Research conducted several decades ago reported that the grapevine transmits information very rapidly in all directions throughout the organization. The typical pattern is a cluster chain, whereby a few people actively transmit rumors to many others. The grapevine works through informal social networks, so it is more active where employees have similar back- grounds and are able to communicate easily. Many rumors seem to have at least a kernel of truth, possibly because they are transmitted through media-rich communication channels (e.g., face to face) and employees are motivated to communicate effectively. Nevertheless, the grapevine distorts information by deleting fine details and exaggerating key points of the story.83
Some of these characteristics might still be true, but the grapevine almost certainly has changed as e-mail, social networking sites, and Twitter tweets have replaced the traditional water cooler as sites for trading gossip. For example, several Facebook sites are unofficially themed around specific companies, allowing employees and customers to vent their com- plaints about the organization. Along with altering the speed and network of corporate grapevines, the Internet has expanded these networks around the globe, not just around the next cubicle.
GRAPEVINE BENEFITS AND LIMITATIONS Should the grapevine be encouraged, tolerated, or quashed? The difficulty in answering this question is that the grape- vine has both benefits and limitations.86 One benefit, as was mentioned earlier, is that employees rely on the grape- vine when information is not available through formal channels. It is also the main conduit through which orga- nizational stories and other symbols of the organization’s culture are communicated. A third benefit of the grapevine is that this social interaction relieves anxiety. This explains
management by walking
around (MBWA)
A communication practice in which executives get out of their offices and learn from others in the organization through face-to-face dialogue.
grapevine
An unstructured and informal communication network founded on social relationships rather than organizational charts or job descriptions.
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Chapter Nine Communicating in Teams and Organizations 275
debating point SHOULD MANAGEMENT USE THE GRAPEVINE TO COMMUNICATE
TO EMPLOYEES?
The grapevine has been the curse of management since modern- day organizations were invented. News flows with stealth-like efficiency below the surface, making it difficult to tell where information is traveling, what is being said to whom, or who is responsible for any misinformation. Although employees natu- rally flock to the grapevine for knowledge and social comfort in difficult times, its messages can be so distorted that it some- times produces more stress than it alleviates. It is absurd to imagine management trying to systematically transmit important information—or any news whatsoever—through this uncontrol- lable, quirky communication channel. But some communication experts are taking a second look at the grapevine, viewing it more as a resource than a nemesis. Their inspiration comes from marketing, where viral and word-of-mouth marketing have become hot topics.84 Viral and word-of-mouth marketing occur when information seeded to a few people is trans- mitted to others based on patterns of friendship. In other words, information is passed along to others at the whim of those who first receive that information. Within organizations, this process is es- sentially the grapevine at work. Employees transmit information to other people within their sphere of everyday interaction. The grapevine might seem to transmit information in strange and unreliable ways, but there are two contrary arguments. First, the grapevine channel is becoming more robust and reliable, thanks to social media and other emerging forms of electronic communication. These media have produced a stronger scaffold- ing than ever before, which potentially makes the grapevine more useful for transmitting information. The second argument is that the grapevine tends to be more per- suasive than traditional communication channels from management
to employees. The grapevine is based on social networks, which we discuss in the next chapter. Social networks are an important source of organizational power, because they are built on trust, and trust increases acceptance of information sent through those networks. Consequently, the grapevine tends to be far more persuasive than other communication channels. The power of the grapevine as a communication tool was re- cently illustrated when Novo Nordisk tried to change the image of its regulatory affairs staff.85 The European pharmaceutical company made limited progress after a year of using traditional communica- tion channels. “We had posters, meetings, competitions, and every- thing else you would expect,” recalls communication adviser Jakob Wolter. “By the end of it, we’d achieved something—a general awareness among our people—but very little else.” So Novo Nordisk took another route. During the half-yearly gathering of all employees, nine regulatory staff were given wax- sealed confidential envelopes that assigned them to one of three “secret societies.” Between conference sessions, these employ- ees met with the managing director, who assigned their mani- festo, including a mandate and budget. They were also told to keep their mission secret, saying to inquisitive coworkers, “I can’t tell you.” “The rumor mill started right there that day,” says Wolter. “People were already wondering what on earth was going on.” The societies were allowed to recruit more employees, which they did in subsequent months. Many employees throughout Novo Nordisk became intrigued, spreading their opinions and news to others. Meanwhile, empowered to improve their image and work processes, members of the three secret societies intro- duced several initiatives that brought about improvements.
why rumor mills are most active during times of uncertainty.87 Finally, the grapevine is asso- ciated with the drive to bond. Being a recipient of gossip is a sign of inclusion, according to evolutionary psychologists. Trying to quash the grapevine is, in some respects, an attempt to undermine the natural human drive for social interaction.88
While the grapevine offers these benefits, it is not a preferred communication medium. Grapevine information is sometimes so distorted that it escalates rather than reduces em- ployee anxiety. Furthermore, employees develop more negative attitudes toward the organi- zation when management is slower than the grapevine in communicating information. What should corporate leaders do with the grapevine? The best advice seems to be to listen to the grapevine as a signal of employee anxiety, then correct the cause of this anxiety. Some companies also listen to the grapevine and step in to correct blatant errors and fabrications. Most important, corporate leaders need to view the grapevine as a communication compet- itor and meet this challenge by directly informing employees of news before it spreads throughout the organizational grapevine.
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276
communication, p. 254 emotional contagion, p. 261 grapevine, p. 274
information overload, p. 267 management by walking around (MBWA), p. 274
media richness, p. 263 persuasion, p. 265
key terms
9-1 Explain why communication is important in organi- zations and discuss four influences on effective com- munication encoding and decoding.
Communication refers to the process by which information is transmitted and understood between two or more people. Com- munication supports work coordination, organizational learn- ing, decision making, changing others’ behavior, and employee well-being. The communication process involves forming, en- coding, and transmitting the intended message to a receiver, who then decodes the message and provides feedback to the sender. Effective communication occurs when the sender’s thoughts are transmitted to and understood by the intended receiver. The effectiveness of this process depends on whether the sender and receiver have similar codebooks, the sender’s pro- ficiency at encoding that message to the audience, the sender’s and receiver’s motivation and ability to transmit messages through that particular communication channel, and their com- mon mental models of the communication context.
9-2 Compare and contrast the advantages of and prob- lems with electronic mail, verbal communication me- dia, and nonverbal communication.
The two main types of communication channels are verbal and nonverbal. Various forms of Internet-based communication are widely used in organizations, with e-mail being the most popular. Although efficient and a useful filing cabinet, e-mail is relatively poor at communicating emotions; it tends to reduce politeness and respect; it is an inefficient medium for communicating in ambiguous, complex, and novel situations; and it contributes to information overload. An emerging set of communication chan- nels is social media, which are Internet- or mobile-based channels that allow users to generate and interactively share information. Social media are more conversational and reciprocally interactive than traditional channels. They are “social” by encouraging col- laboration and the formation of virtual communities. Nonverbal communication includes facial gestures, voice intonation, physi- cal distance, and even silence. Unlike verbal communication, nonverbal communication is less rule-bound and is mostly auto- matic and nonconscious. Some nonverbal communication is automatic through a process called emotional contagion.
9-3 Explain how social acceptance and media richness influence the preferred communication channel.
The most appropriate communication medium partly depends on its social acceptance and media richness. Social acceptance refers to how well the communication medium is approved and sup- ported by the organization, teams, and individuals. This con- tingency includes organization and team norms, individual preferences for specific communication channels, and the sym- bolic meaning of a channel. A communication medium should also be chosen for its data-carrying capacity (media richness).
Nonroutine and ambiguous situations require rich media. How- ever, technology-based lean media might be almost as effective as rich media for transferring information. This particularly occurs where users can multi-communicate and have high proficiency with that technology, and where social distractions of high media richness channels reduce the efficient processing of information through those channels. These contingencies are also considered when selecting the best channels for persuasion.
9-4 Discuss various barriers (noise) to effective commu- nication, including cross-cultural and gender-based differences in communication.
Several barriers create noise in the communication process. Peo- ple misinterpret messages because of misaligned codebooks due to different languages, jargon, and the use of ambiguous phrases. Filtering messages and information overload are two other com- munication barriers. These problems are often amplified in cross-cultural settings, where these problems occur, along with differences in the meaning of nonverbal cues, silence, and con- versational overlaps. There are also some communication differ- ences between men and women, such as the tendency for men to exert status and engage in report talk in conversations, whereas women use more rapport talk and are more sensitive than are men to nonverbal cues.
9-5 Explain how to get your message across more effec- tively, and summarize the elements of active listening.
To get a message across, the sender must learn to empathize with the receiver, repeat the message, choose an appropriate time for the conversation, and be descriptive rather than evaluative. Listening includes sensing, evaluating, and responding. Active listeners support these processes by postponing evaluation, avoid- ing interruptions, maintaining interest, empathizing, organizing information, showing interest, and clarifying the message.
9-6 Summarize effective communication strategies in or- ganizational hierarchies, and review the role and rele- vance of the organizational grapevine.
Some companies try to encourage communication through workspace design, as well as through Internet-based commu- nication channels. Some executives also meet directly with employees, such as through management by walking around (MBWA) and town-hall meetings, to facilitate communication across the organization. In any organization, employees rely on the grapevine, partic- ularly during times of uncertainty. The grapevine is an unstruc- tured and informal network founded on social relationships rather than organizational charts or job descriptions. Although early research identified several unique features of the grapevine, some of these features may be changing as the Internet plays an increasing role in grapevine communication.
chapter summary
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CASE STUDY: COMMUNICATING WITH THE MILLENNIALS The Millennials (including Generation Y) have arrived in the workplace, and they are bringing new ways to communicate. Surveys report that cell phones (particularly smartphones) have become the medium of choice among Millennials. Al- most all (97%) Millennials in the United States with cell phones send text messages, 84 percent access the internet, and 73 percent send or receive email using their cell phones. In contrast, among cell phone owners over 50 years old, less than two-thirds send text messages, only about one-third ac- cess the internet, and only about one-third send or receive emails using their phones. Millennial communication also relies much more on so- cial media. Almost 90 percent of Millennials regularly visit Facebook, LinkedIn, or other social networking sites, whereas only about half of Americans over 50 years old visit these sites. Thirty percent of Millennials use Twitter, compared to less than 10 percent of people over 50 years old. These statistics send a clear message: Millennials prefer different communication channels (cell phones, social media) and different communication styles (i.e. short, informal mes- sages) than those dictated by most organizations. These gaps between corporate and personal communication preferences not only produce dysfunctional conflict and frustration; they also undermine the company’s ability to attract future talent. “[Millennials] will judge companies on the social media prac- tices and policies, which includes how companies utilize so- cial media in their operations, their digital awareness, and any restrictions imposed on employees’ access and usage of social media during work time,” warns Barry Thomas, direc- tor of Cook Medical Asia-Pacific.
Most companies aren’t hearing the message. They con- tinue to block social networking, text messaging, and other channels preferred by Millennials. Some firms argue these practices are workplace intrusions that undermine productiv- ity. Others justify blocking communication through these channels due to security risks. Whether these arguments are valid remains uncertain, a growing chorus of experts are advising that companies need to adapt to the communication styles of Millennials rather than reject them outright. Furthermore, companies need to make better use of the communication skills that Millennials bring to the workplace. “A new employee who comes in with the ability to man- age a network of 1,000 Facebook friends every day. That’s a fabulous skill in, let’s say, a sales organization,” says Ross Smith, Director of Test at Microsoft, Inc. The problem he suggests, is that many companies don’t know how to leverage that communication potential. “It’s likely that the organiza- tion has no idea, particularly because the organization is gen- erally going to be run by boomer, Gen X managers, who aren’t savvy Facebook users. But the Gen Y or millennial em- ployee coming in certainly knows how to do that.” Smith believes the solution is to give Millennials more freedom to try out new communication practices. “If the se- nior leaders or the organization can develop a culture of high trust, then the individual’s going to be free to experiment and suggest new things and try new ways of doing things and uncover how Facebook skills map to a sales organization.” St. Luke’s Medical Center in Boise, Idaho, is a case in point. Hospital leaders discovered that the younger medical
critical thinking questions 1. You have been hired as a consultant to improve communica-
tion between engineering and marketing staff in a large high-technology company. Use the communication model and the four ways to improve that process to devise strate- gies to improve communication effectiveness among em- ployees between these two work units.
2. “An organization comes into being when people can com- municate with each other.” Discuss the benefits and limita- tions of communicating with e-mails among team members.
3. Senior management at a consumer goods company wants you to investigate the feasibility of using a virtual reality platform (such as Second Life) for monthly online meetings involving its three dozen sales managers, located in several cities and countries. Use the social acceptance and media richness factors described in this chapter to identify informa- tion you need to consider when conducting this evaluation.
4. Wikis are collaborative websites where anyone in the group can post, edit, or delete any information. Where
might this communication technology be most useful in organizations?
5. Under what conditions, if any, do you think it is appropriate to use e-mail to notify an employee that he or she has been laid off or fired? Why is e-mail usually considered an inap- propriate channel to convey this information?
6. Suppose that you are part of a virtual team and must per- suade other team members on an important matter (such as switching suppliers or altering the project deadline). Assum- ing that you cannot visit these people in person, what can you do to maximize your persuasiveness?
7. Explain why men and women are sometimes frustrated with each other’s communication behaviors.
8. In your opinion, has the introduction of e-mail and other information technologies increased or decreased the amount of information flowing through the corporate grapevine? Explain your answer.
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TEAM EXERCISE: ACTIVE LISTENING EXERCISE Mary Gander, Winona State University
PURPOSE This exercise is designed to help you under- stand the dynamics of active listening in conversations and to develop active listening skills.
INSTRUCTIONS For each of the four vignettes pre- sented here, student teams (or students working individually) will compose three statements that demonstrate active listen- ing. Specifically, one statement will indicate that you show empathy for the situation; the second will ask for clarification and detail in a nonjudgmental way; and the third statement will provide nonevaluative feedback to the speaker. Here are details about each of these three types of responses:
• Showing empathy: acknowledge feelings. Sometimes it sounds like a speaker wants you to agree with him or her, but in reality the speaker mainly wants you to understand how he or she feels. “Acknowledging feelings” involves taking in the speaker’s statements while looking at the “whole message” including body language, tone of voice, and level of arousal, and trying to determine what emo- tion the speaker is conveying. Then, you let the speaker know that you realize what he or she is feeling by ac- knowledging it in a sentence.
staff were texting each other with medical orders and patient updates. Texting is one of the preferred communication methods among these physicians and nurses, and it is a much more efficient than the hospital’s formal practice of phoning and paging people. But texting through public networks lacks security (it could be hacked by outsiders) and violates industry regulations. Another hospital would have banned the practice without further thought, but St. Luke’s is instead contracted with an IT company to set up a secure texting system for the hospital. “I’ve heard [officials of ] other organizations say, ‘We can’t do that,’” says Jennifer Mensik, St. Luke’s administrator of nursing and patient care services. “But when people are try- ing to do the best they can for the patient, they’re going to try to find a workaround. That should be an alert to some of the older generation that this is a good idea. Let’s not stop it. Let’s figure out how we can do it legally and correctly.” Although companies need to adapt to Millennial commu- nication preferences, the reverse is also true. Millennials need to spruce up their skills using older technologies. For in- stance, advertising sales at Metro Guide Publishing in Halifax, Nova Scotia, were down, and publisher Patty Baxter noticed that the office lacked the buzz of sales calls. The problem, she realized, was that most of Metro Guide’s new generation of employees were emailing clients rather than selling advertis- ing by telephone. Baxter explains that email doesn’t work in business deals, where personal rapport and quick understanding of the cli- ent’s needs are critical. “You’re not selling if you’re just asking a question and getting an answer back,” she says. Baxter also suggests that phone calls tend to result in fewer communica- tion errors, citing a recent incident in which a sales employee misinterpreted a client’s email about a possible advertising sale. Metro Guide sales staff now receive on-the-job coaching with phone-use consultant Mary Jane Copps, who observes that Millennial employees (as well as others) often suffer
from phone phobia. “It’s a lack of confidence that they’ll be able to say the right words in the right order in the right amount of time,” she explains.
Discussion Questions
1. Take a poll of your class (at least, the Gen-X and Gen-Y members). At school or work, how many regularly (e.g., daily or every few days) send or receive information (not entertainment) using (a) e-mail, (b) instant messages or Twitter tweets, (c) cell phone text messages, (d) reading/ writing blogs, (e) visiting/authoring social media sites (e.g., Facebook, Instagram), (f ) watching/creating online videos (e.g., YouTube)?
2. Even within this generation, there are different prefer- ences for communication media. After conducting the poll, ask students who don’t regularly use one or more of these methods why they don’t like that particular com- munication medium. Ask those who very often use these sources to give their point of view.
3. Companies have been slow and reluctant to adopt social media channels, cell phone text messaging, and similar forms of communication. If you were a senior manager, how would you introduce these communication technol- ogies in the workplace to share information and knowl- edge more effectively?
Sources: Hughes, Mark. “Fishing for Reliable Staff in Gen Y Waters.” China Daily, 12 October 2012; Putre, Laura. “A Clash of Ages.” Hospitals & Health Networks, March 2013, 40-44; Hofschneider, Anita. “Bosses Say ‘Pick up the Phone’.” Wall Street Journal, 28 August 2013; Brenner, Joanna, and Aaron Smith. “72% of Online Adults Are Social Networking Site Users.” In Internet & American Life Project. Washington, DC: Pew Research Center, 2013; Robison, Wesley. “How Microsoft Builds Trust in the Workplace.” psfk, 27 September 2013; Duggan, Maeve. “Cell Phone Activities 2013.” In Internet & American Life Project. Washington, DC: Pew Research Center, 2013.
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TEAM EXERCISE: CROSS-CULTURAL COMMUNICATION GAME PURPOSE This exercise is designed to develop and test your knowledge of cross-cultural differences in communica- tion and etiquette.
MATERIALS The instructor will provide one set of question/answer cards to each pair of teams.
INSTRUCTIONS
Step 1: The class is divided into an even number of teams. Ideally, each team would have three students. (Two- or four-student teams are possible if matched with an equal- sized team.) Each team is then paired with another team and
the paired teams (Team “A” and Team “B”) are assigned a private space, away from other matched teams.
Step 2: The instructor will hand each pair of teams a stack of cards with the multiple choice questions face down. These cards have questions and answers about cross-cultural differ- ences in communication and etiquette. No books or other aids are allowed.
Step 3: The exercise begins with a member of Team A picking up one card from the top of the pile and asking the question on that card to the members of Team B. The information given to Team B includes the question and all
• Asking for clarification and detail while withholding judg- ment and opinions. This conveys that you are trying to understand, not just trying to push your opinions onto the speaker. To formulate a relevant question in asking for more clarification, you will have to listen carefully to what the speaker says. Frame your question as some- one trying to understand in more detail; often asking for a specific example is useful. This also helps the speaker evaluate his or her own opinions and perspective.
• Providing nonevaluative feedback: feeding back the mes- sage you heard. This will allow the speaker to determine if he or she conveyed the message to you and will help prevent troublesome miscommunication. It will also help the speaker become more aware of how he or she is coming across to another person (self-evaluation). Just think about what the speaker is conveying; para- phrase it in your own words, and say it back to the speaker (without judging the correctness or merit of what was said), asking him or her if that is what was meant.
After teams (or individual students) have prepared the three statements for each vignette, the instructor will ask them to present their statements and explain how these statements satisfy the active listening criteria.
VIGNETTE #1 A colleague stops by your desk and says, “I am tired of the lack of leadership around here. The boss is so wishy-washy, he can’t get tough with some of the slackers around here. They just keep milking the company, living off the rest of us. Why doesn’t management do something about these guys? And you are always so supportive of the boss; he’s not as good as you make him out to be.” Develop three statements that respond to the speaker in this vignette by (a) showing empathy, (b) seeking clarifica- tion, and (c) providing nonevaluative feedback.
VIGNETTE #2 Your coworker stops by your cubicle; her voice and body language show stress, frustration, and even some fear. You know she has been working hard and has a strong need to get her work done on time and done well. You are trying to concentrate on some work and have had a num- ber of interruptions already. She abruptly interrupts you and says, “This project is turning out to be a mess. Why can’t the other three people on my team quit fighting with each other?” Develop three statements that respond to the speaker in this vignette by (a) showing empathy, (b) seeking clarifica- tion, and (c) providing nonevaluative feedback.
VIGNETTE #3 One of your subordinates is working on an important project. He is an engineer who has good techni- cal skills and knowledge and was selected for the project team for that reason. He stops by your office and appears to be quite agitated: His voice is loud and strained, and his face has a look of bewilderment. He says, “I’m supposed to be work- ing with four other people from four other departments on this new project, but they never listen to my ideas and seem to hardly know I’m at the meeting!” Develop three statements that respond to the speaker in this vignette by (a) showing empathy, (b) seeking clarifica- tion, and (c) providing nonevaluative feedback.
VIGNETTE #4 Your subordinate comes into your office in a state of agitation, asking if she can talk to you. She is polite and sits down. She seems calm and does not have an angry look on her face. However, she says, “It seems like you consistently make up lousy schedules; you are unfair and un- realistic in the kinds of assignments you give certain people, me included. Everyone else is so intimidated they don’t com- plain, but I think you need to know that this isn’t right and it’s got to change.” Develop three statements that respond to the speaker in this vignette by (a) showing empathy, (b) seeking clarifica- tion, and (c) providing nonevaluative feedback.
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alternatives listed on the card. Team B has 30 seconds after the question and alternatives have been read to give an an- swer. Team B earns one point if the correct answer is given. If Team B’s answer is incorrect, however, Team A earns that point. Correct answers to each question are indicated on the card and, of course, should not be revealed until the ques- tion is correctly answered or time is up. Whether or not Team B answers correctly, it picks up the next card on the pile and reads it to members of Team A. In other words,
cards are read alternatively to each team. This procedure is repeated until all of the cards have been read or time has ex- pired. The team receiving the most points wins.
Important note: The textbook provides very little informa- tion pertaining to the questions in this exercise. Rather, you must rely on past learning, logic, and luck to win.
© 2011, 2001 Steven L. McShane.
SELF-ASSESSMENT
ARE YOU AN ACTIVE LISTENER? PURPOSE This self-assessment is designed to help you es- timate your strengths and weaknesses on various dimensions of active listening.
INSTRUCTIONS Think back to face-to-face conversa- tions you have had with a coworker or client in the office, hallway, factory floor, or other setting. Indicate the extent that each item below describes your behavior during those
conversations. Answer each item as truthfully as possible so that you get an accurate estimate of where your active listen- ing skills need improvement. Then, use the scoring key in Appendix B to calculate your results for each scale. This ex- ercise is completed alone, so students can assess themselves honestly without concerns of social comparison. However, class discussion will focus on the important elements of ac- tive listening.
Active Listening Skills Inventory
WHEN LISTENING TO OTHERS IN FACE-TO-FACE, TELEPHONE, OR SIMILAR CONVERSATIONS, NEVER OR ALMOST HOW OFTEN DO YOU DO THE FOLLOWING? RARELY SELDOM SOMETIMES OFTEN ALWAYS
(continued)
1. I keep an open mind when others describe their ideas.
2. I organize the speaker’s ideas while s/he is talking to me.
3. I ask questions to show I understand and am focused on the speaker’s message.
4. I interrupt before the speaker sufficiently presents his/her views.
5. While listening, I mentally sort out the speaker’s ideas so s/he makes sense to me.
6. I use gestures and words (nodding, agreeing) to show I am listening.
7. I let my mind wander when listening to people.
8. I try to visualize and feel the speaker’s experience while s/he is describing those events.
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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.
WHEN LISTENING TO OTHERS IN FACE-TO-FACE, TELEPHONE, OR SIMILAR CONVERSATIONS, NEVER OR ALMOST HOW OFTEN DO YOU DO THE FOLLOWING? RARELY SELDOM SOMETIMES OFTEN ALWAYS
© 2010 Steven L. McShane.
9. I summarize the speaker’s ideas to confirm that I understand him/her correctly.
10. I focus on what the speaker is saying to me even when it doesn’t sound interesting.
11. I see the topic from my perspective rather than from the speaker’s perspective.
12. I show interest while listening to others.
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Power and Influence in the Workplace
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c ha pter
After reading this chapter, you should be able to:
10-1 Describe the dependence model of power and the five sources of power in organizations.
10-2 Discuss the four contingencies of power.
10-3 Explain how people and work units gain power through social networks.
10-4 Describe eight types of influence tactics, three consequences of influencing others, and three contingencies to consider when choosing an influence tactic.
10-5 Identify the organizational conditions and personal characteristics associated with higher organizational politics, as well as ways to minimize organizational politics.
10
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P Morgan Chase & Co. suffered a $7 billion loss from a highly speculative bet by a small group of traders in its London office. How could a handful of employees cause America’s largest bank (by assets) to lose so much money? On the surface, the problem was that JP Morgan
failed to provide sufficient risk compliance oversight. But a deeper explanation
relates to the dynamics of power and influence among those involved.
The ill-fated trades occurred in JP Morgan’s chief investment office (CIO), a
special unit whose original objective was to use the bank’s own money to
conservatively hedge against its investment risks. However, top management
apparently encouraged the CIO to become a profit center, so it took on
increasingly large and more speculative bets. The unit’s portfolio tripled over three
years to $350 billion (15 percent of JP Morgan’s total assets) and apparently
generated more than 10 percent of the bank’s net income. It had gained senior
management’s highest respect.
JP Morgan monitored risk compliance among its client-serving trading groups,
whereas the CIO traders were under much less scrutiny, possibly because their
assets were the bank’s money, not clients’ money. One U.S. government investigator
quipped that supervision of CIO trades “was little more than a rubber stamp.” The
CIO traders reported their results less often than did other groups and, due to the
complexity of these products, had considerable discretion to estimate the size of
those gains and losses. A U.S. Senator remarked that “the traders seemed to have
more responsibility and authority than the higher-up executives.”
Bruno Iksil, the lead trader in the CIO group’s London operations, had developed
a reputation for making bold, but ultimately profitable, bets on whether companies
would default on their bond payments. A few years ago, traders nicknamed Iksil the
“Caveman” for his aggressive trading style. Later, Iksil became known as “Voldemort”
after the powerful Harry Potter villain, because his trades namelessly moved the
markets in which he bet. But Iksil’s most famous nickname was “the London Whale,”
because of his mammoth $100 billion credit default bet that ultimately cost the bank
$7 billion.
P h L (b(b
fa
J
283
Through unconstrained power and influence, a handful of traders in the London bureau of JP Morgan’s chief investment office produced a mammoth $7 billion loss.
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284 Part Three Team Processes
Even Iksil’s considerable power couldn’t save his oversized credit default
position. Hedge funds noticed how his trades distorted the market, so they bet
against those trades, which eventually created huge losses. Iksil’s boss allegedly
pressured him and his assistant to underestimate the losses. When Iksil eventually
refused, his boss told him to “leave for the day” so a junior trader could file a lower
loss amount. JP Morgan’s chief investment officer later complained that “some
members of the London team failed to value positions properly” and that they “hid
from me important information regarding the true risks of the book.” The losses
were revealed only after the bank completed one if its regular reviews. Iksil, his
boss, the bank’s chief investment officer, and several others have since left the bank.1
JP Morgan’s recent financial fiasco illustrates how power and influence can have profound consequences for employee behavior and the organization’s success. Employees and depart- ments develop power bases, and various contingencies either facilitate or limit the application of that power in the organization. Although this case study illustrates the dark side of power and influence, they are equally relevant to ethical conduct and organizational performance. In fact, some OB experts point out that power and influence are inherent in all organizations. They exist in every business and in every decision and action.
This chapter unfolds as follows: First, we define power and present a basic model depict- ing the dynamics of power in organizational settings. The chapter then discusses the five bases of power, including the role of information in those power bases. Next, we look at the contingencies necessary to translate those sources into meaningful power. Our attention then turns to social networks and how they provide power to members through social capi- tal. The latter part of this chapter examines the various types of influence in organizational settings, as well as the contingencies of effective influence strategies. The final section of this chapter looks at situations in which influence becomes organizational politics, as well as ways of minimizing political behavior.
The Meaning of Power Power is the capacity of a person, team, or organization to influence others.2 There are a few important features of this definition. First, power is not the act of changing someone’s atti- tudes or behavior; it is only the potential to do so. People frequently have power they do not use; they might not even know they have power. Second, power is based on the target’s per- ception that the power holder controls (i.e., possesses, has access to, or regulates) a valuable resource that can help the target achieve his or her goals.3 People might generate power by convincing others that they control something of value, whether or not they actually control that resource. This perception is also formed from the power holder’s behavior, such as someone who is not swayed by authority or norms. For instance, one recent study found that people are perceived as more powerful just by their behavior, such as putting their feet on a table.4 To illustrate, Bruno Iksil apparently created an image of power at JP Morgan by dressing more casually than other staff. However, power is not a personal feeling of power. You might feel powerful or think you have power over others, but this is not power unless others believe you have that capacity.
Third, power involves the asymmetric (unequal) dependence of one party on another party.5 This dependent relationship is illustrated in Exhibit 10.1. The line from Person B to the goal shows that he or she believes Person A controls a resource that can help or hinder Person B in achieving that goal. Person A—the power holder in this illustration—might have power over Person B by controlling a desired job assignment, useful information,
LO 10-1
power
The capacity of a person, team, or organization to influence others.
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Chapter Ten Power and Influence in the Workplace 285
rewards, or even the privilege of being associated with him or her! For example, if you be- lieve a coworker has expertise (the resource) that would substantially help you write a better report (your goal), then that coworker has some power over you, because you value that ex- pertise to achieve your goal. Whatever the resource is, Person B is dependent on Person A (the power holder) to provide the resource so Person B can reach his or her goal.
Although dependence is a key element of power relationships, we use the phrase “asym- metric dependence,” because the less powerful party still has some degree of power—called countervailing power—over the power holder. In Exhibit 10.1, Person A dominates the power relationship, but Person B has enough countervailing power to keep Person A in the exchange relationship and ensure that person or department uses its dominant power judi- ciously. For example, though managers have power over subordinates in many ways (e.g., controlling job security, preferred work assignments), employees have countervailing power by possessing the skills and knowledge to keep production humming and customers happy, something that management can’t accomplish alone.
Finally, the power relationship depends on some minimum level of trust. Trust indicates a level of expectation that the more powerful party will deliver the resource. For example, you trust your employer to give you a paycheck at the end of each pay period. Even those in extremely dependent situations will usually walk away from the relationship if they lack a minimum level of trust in the more powerful party.
Let’s look at this power dependence model in the employee–manager relationship. You depend on your boss to support your continued employment, provide satisfactory work arrangements, and grant access to other valued resources. At the same time, your manager depends on you to complete required tasks and work effectively with others in the comple- tion of their work. Managers (and the companies they represent) typically have more power, whereas employees have weaker countervailing power. But sometimes employees do have more power than their bosses in the employment relationship. Notice that the strength of your power in the employee–manager relationship doesn’t depend on your actual control over valued resources; it depends on the perceptions that your boss and others have about your control of these resources. Finally, trust is an essential ingredient in this relationship. Even with strong power, the employee–manager relationship comes apart when one party no longer sufficiently trusts the other.
The dependence model reveals only the core features of power dynamics between people and work units in organizations. We also need to learn about the specific sources of power and contingencies that allow that power to be effectively applied as influence. As Exhibit 10.2 illustrates, power is derived from five sources: legitimate, reward, coercive, expert, and ref- erent. The model also identifies four contingencies of power: the employee’s or department’s substitutability, centrality, discretion, and visibility. Over the next few pages, we will discuss each of these sources and contingencies of power in the context of organizations.
Person B’s goal
Countervailing power
Person A is perceived as controlling resources that help or hinder Person B’s goal achievement
Power
P A i
Person A (power holder)
Person B
EXHIBIT 10.1
Dependence Model of Power
countervailing power
The capacity of a person, team, or organization to keep a more powerful person or group in the exchange relationship.
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Sources of Power in Organizations A half-century ago, social scientists John French and Bertrand Raven identified five sources of power found in organizations. Although variations of this list have been proposed over the years, the original list remains surprisingly intact.6 Three sources of power—legitimate, re- ward, and coercive—originate mostly (but not completely) from the power holder’s formal position or informal role. In other words, the person is granted these sources of power for- mally by the organization or informally by coworkers. Two other sources of power—expert and referent—originate mainly from the power holder’s own characteristics; in other words, people carry these power bases around with them. However, even personal sources of power are not completely within the person, because they depend on how others perceive them.
LEGITIMATE POWER Legitimate power is an agreement among organizational members that people in certain roles can request a set of behaviors from others. This perceived right or obligation originates from formal job descriptions as well as informal rules of conduct. The most obvious exam- ple of legitimate power is a manager’s right to tell employees what tasks to perform, whom to work with, what office resources they can use, and so forth. Employees follow the boss’s requests because there is mutual agreement that employees will follow a range of directives from people in these positions of authority. Employees defer to this authority whether or not they will be rewarded or punished for complying with those requests.
others
EXHIBIT 10.2
Sources and Contingencies of Power
Visit connect.mcgrawhill.com for activities and test questions to help you learn about the sources of power.
legitimate power
An agreement among organizational members that people in certain roles can request certain behaviors of others.
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Notice that legitimate power has restrictions; it only gives the power holder the right to ask for a range of behaviors from others. This range—known as the “zone of indifference”— is the set of behaviors that individuals are willing to engage in at the other person’s request.7 Although most employees accept the boss’s right to deny them access to Facebook during company time, some might draw the line when the boss asks them to work several hours beyond the regular workday.
The size of the zone of indifference (and, consequently, the magnitude of legitimate power) increases with the level of trust in the power holder. Some values and personality traits also make people more obedient to authority. Those who value conformity and tradi- tion as well as have high power distance (i.e., they accept an unequal distribution of power) tend to have higher deference to authority. The organization’s culture represents another influence on the willingness of employees to follow orders. A 3M scientist might continue to work on a project after being told by superiors to stop working on it, because the 3M culture supports an entrepreneurial spirit, which includes ignoring your boss’s authority from time to time.8
Managers are not the only people with legitimate power in organizations. Employees also have legitimate power over their bosses and coworkers through legal and administrative rights, as well as informal norms.10 For example, an organization might give employees the right to request information that is required for their job. Laws give employees the right to refuse work in unsafe conditions. More subtle forms of legitimate power also exist. Human beings have a norm of reciprocity, that is, a feeling of obligation to help someone who has helped you.11 If a coworker previously helped you handle a difficult client, that coworker has power because you feel an obligation to help the coworker on something of similar value in the future. The norm of reciprocity is a form of legitimate power because it is an informal rule of conduct that we are expected to follow.
Legitimate Power Through Information Control A particularly potent form of legitimate power occurs when people have the right to control the information that others
A French television program recently revealed how far people are willing to follow orders. As a variation of the 1960s experiments conducted by Stanley Milgram, 80 contestants administered electric shocks whenever a volunteer (an actor who didn’t receive the shocks at all) answered a question incorrectly. Shocks increased in 20-volt increments, from 20 volts for the first mistake through to 460 volts. Contestants often hesitated after hearing the volunteer screaming for them to stop, yet continued the shocks after the host reminded them of their duty. Only 16 of the 80 contestants refused to administer the strongest shocks.9
norm of reciprocity
A felt obligation and social expectation of helping or otherwise giving something of value to someone who has already helped or given something of value to you.
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receive.12 These information gatekeepers gain power in two ways. First, information is a resource, so those who need that information depend on the gatekeeper to provide that resource. For example, the maps department of a mining company has incredible power when other departments are dependent on the map department to deliver maps required for exploration projects.
Second, information gatekeepers gain power by selectively distributing information so those receiving the information perceive the situation differently.13 Executives depend on middle managers and employees to provide an accurate picture of the company’s operations. Yet, as we learned in the previous chapter on communication, information is often filtered as it flows up the hierarchy. Middle managers and employees filter information so it puts them in a more positive light and allows them to steer the executive team toward one deci- sion rather than another. In other words, these information gatekeepers can potentially in- fluence executive decisions by framing their reality through selective distribution of information. This form of power was illustrated in the case study at the beginning of this chapter. The U.S. government officials claim that JP Morgan traders (and their managers) distorted or hid information about their trading losses, hoping that it would buy them time to recoup those losses, before top management discovered the problem.
REWARD POWER Reward power is derived from the person’s ability to control the allocation of rewards valued by others and to remove negative sanctions (i.e., negative reinforcement). Manag- ers have formal authority that gives them power over the distribution of organizational rewards, such as pay, promotions, time off, vacation schedules, and work assignments. Employees also have reward power over their bosses through their feedback and ratings in 360-degree feedback systems. These ratings affect supervisors’ promotions and other rewards, so supervisors tend to pay more attention to employee needs after 360-degree feedback is introduced.
COERCIVE POWER Coercive power is the ability to apply punishment. For many of us, the first thought is managers threatening employees with dismissal. Yet employees also have coercive power, such as being sarcastic toward coworkers or threatening to ostracize them if they fail to conform to team norms.14 Many firms rely on this coercive power to control coworker behavior in team settings. Nucor is one such example: “If you’re not contributing with the team, they certainly will let you know about it,” says an executive at the Charlotte, North Carolina, steelmaker. “The few poor players get weeded out by their peers.” Similarly, when asked how AirAsia maintained attendance and productivity after the Malaysian discount airline removed time clocks, chief executive Tony Fernandes replied: “Simple. Peer pressure sees to that. The fellow employees, who are putting their shoul- ders to the wheel, will see to that.”15
EXPERT POWER For the most part, legitimate, reward, and coercive power originate from the position.16 Expert power, on the other hand, originates mainly from within the power holder. It is an individual’s or work unit’s capacity to influence others by possessing knowledge or skills valued by others. In this chapter’s opening case study, Bruno Iksil and others in JP Morgan’s chief investment office developed a reputation for their expertise at profiting from complex derivatives trades. This expertise may have deterred senior management from monitoring the group more closely.
One important form of expert power is the perceived ability to manage uncertainties in the business environment. Organizations are more effective when they operate in predict- able environments, so they value people who can cope with turbulence in consumer trends,
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Chapter Ten Power and Influence in the Workplace 289
societal changes, unstable supply lines, and so forth. Expertise can help companies cope with uncertainty in three ways. These coping strategies are arranged in a hierarchy of importance, with prevention being the most powerful:17
• Prevention—The most effective strategy is to prevent environmental changes from occurring. For example, financial experts acquire power by preventing the organiza- tion from experiencing a cash shortage or defaulting on loans.
• Forecasting—The next best strategy is to predict environmental changes or variations. In this respect, trendspotters and other marketing specialists gain power by predicting changes in consumer preferences.
• Absorption—People and work units also gain power by absorbing or neutralizing the impact of environmental shifts as they occur. An example is the ability of mainte- nance crews to come to the rescue when machines break down.
Many people respond to expertise just as they respond to authority: They mindlessly follow the guidance of these experts.19 In one classic study, for example, a researcher posing as a hospital physician telephoned on-duty nurses to prescribe a specific dosage of medicine to a hospitalized patient. None of the nurses knew the person calling, and hospital policy forbade them from accepting treatment by telephone (i.e., they lacked legitimate power). Furthermore, the medication was unauthorized, and the prescription was twice the maxi- mum daily dose. Yet, almost all 22 nurses who received the telephone call followed the “doctor’s” orders until stopped by researchers.20
This doctor–nurse study is a few decades old, but the power of expertise remains just as strong today, sometimes with tragic consequences. The Canadian justice system recently discovered that one of its “star” expert witnesses—a forensic child pathology expert—had provided inaccurate cause of death evaluations in at least 20 cases, a dozen of which resulted in wrongful or highly questionable criminal convictions. The pathologist’s reputation as a renowned authority was the main reason why his often weak evidence was accepted without question. “Experts in a courtroom—we give great deference to experts,” admits a Canadian defense lawyer familiar with this situation.21
REFERENT POWER People have referent power when others identify with them, like them, or otherwise respect them. As with expert power, referent power originates within the power holder. It is largely a function of the person’s interpersonal skills. Referent power is also associated with
StarHub grew quickly over the past dozen years to become Singapore’s second largest telecommunications company. But that country’s phone, cable, and Internet markets have become saturated, so StarHub’s incoming CEO Tan Tong Hai is keen to discover new services to offer. Tan created I3 (pronounced I-cube), a business intelligence unit that will peek into the future by analyzing the behavior and habits of its customers. “If you understand [customer] habits, you can predict the future,” says Tan. I3 will also investigate emerging technologies and their potential for StarHub’s business. I3’s potential ability to guide StarHub’s future has already made it a powerful force in the company. “This arm is going to be the pathfinder for StarHub, to look at new sources of revenue for the company, new areas that StarHub is to be looking at,” says Tan.18
referent power
The capacity to influence others on the basis of an identification with and respect for the power holder.
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charisma. Experts have difficulty agreeing on the meaning of charisma, but it is most often described as a form of interpersonal attraction whereby followers ascribe almost magical powers to the charismatic individual.22 Some writers describe charisma as a special “gift” or trait within the charismatic person, while others say it is mainly in the eyes of the beholder. However, all agree that charisma produces a high degree of trust, respect, and devotion to- ward the charismatic individual.
Visit connect.mcgrawhill.com for activities and test questions to help you learn about the contingencies of power.
Contingencies of Power Let’s say that you have expert power because of your ability to forecast and possibly even prevent dramatic changes in the organization’s environment. Does this expertise mean that you are influential? Not necessarily. As was illustrated earlier in Exhibit 10.2, sources of power generate power only under certain conditions. Four important contingencies of power are substitutability, centrality, visibility, and discretion.23
SUBSTITUTABILITY Substitutability refers to the availability of alternatives. Power is strongest when someone has a monopoly over a valued resource. Conversely, power decreases as the number of alter- native sources of the critical resource increases. If you, and no one else, has expertise across the organization on an important issue, you would be more powerful than if several people in your company possess this valued knowledge. Substitutability refers not only to other sources that offer the resource but also to substitutions of the resource itself. For instance, labor unions are weakened when companies introduce technologies that replace the need for their union members. Technology is a substitute for employees and, consequently, reduces union power.
Nonsubstitutability is strengthened by controlling access to the resource. Professions and labor unions gain power by controlling knowledge, tasks, or labor to perform important activities. For instance, the medical profession is powerful because it controls who can per- form specific medical procedures. Labor unions that dominate an industry effectively con- trol access to labor needed to perform key jobs. Employees become nonsubstitutable when they possess knowledge (such as operating equipment or serving clients) that is not docu- mented or readily available to others. Nonsubstitutability also occurs when people differen- tiate their resource from the alternatives. Some people claim that consultants use this tactic. They take skills and knowledge that many other consulting firms can provide and wrap them into a package (with the latest buzz words, of course) so that it looks like a service that no one else can offer.
CENTRALITY Centrality refers to the power holder’s importance, based on the degree and nature of interdependence with others.25 Centrality increases with the number of people dependent on you, as well as how quickly and severely they are affected by that dependence. Think about your own
LO 10-2
charisma
A personal characteristic or special “gift” that serves as a form of interpersonal attraction and referent power over others.
substitutability
A contingency of power pertaining to the availability of alternatives.
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centrality for a moment: If you decided not to show up for work or school tomorrow, how many people would have difficulty performing their jobs because of your absence? How soon after they arrive at work would these coworkers notice that you are missing and have to adjust their tasks and work schedule as a result? If you have high centrality, many people in the organization would be adversely affected by your absence, and they would be affected quickly.
The extent to which centrality leverages power is apparent in well-timed labor union strikes, such as the New York City transit strike during the busy Christmas shopping season a few years ago. The illegal three-day work stoppage clogged roads and prevented half of city workers from getting to work on time. “[The Metropolitan Transit Authority] told us we got no power, but we got power,” said one striking transit worker. “We got the power to stop the city.”26
VISIBILITY Lucy Shadbolt and her team members work from home and other remote locations for most of her workweek. While the manager of British Gas New Energy enjoys this freedom, she also knows that working remotely can be a career liability due to the lack of visibility. “When I go into the office, where we hot-desk, I have to make an effort to position myself near my boss,” says Shadbolt. “You need to consciously build relationships when you don’t have those water-cooler moments naturally occurring.”27
Lucy Shadbolt recognizes that power does not flow to unknown people in the organiza- tion. Instead, employees gain power when their talents remain in the forefront of the minds of their boss, coworkers, and others. In other words, power increases with your visibility. One way to increase visibility is to take people-oriented jobs and work on projects that require frequent interaction with senior executives. “You can take visibility in steps,” advises an exec- utive at a pharmaceutical firm. “You can start by making yourself visible in a small group, such as a staff meeting. Then when you’re comfortable with that, seek out larger arenas.”28
Employees also gain visibility by being, quite literally, visible. Some people (such as Lucy Shadbolt) strategically locate themselves in more visible work areas, such as those closest to the boss or where other employees frequently pass by. People often use public symbols as subtle (and not-so-subtle) cues to make their power sources known to others. Many professionals display their educational diplomas and awards on office walls to remind visitors of their exper- tise. Medical professionals wear white coats with a stethoscope around their neck to symbolize their legitimate and expert power in hospital settings. Other people play the game of “face time”—spending more time at work and showing that they are working productively.
DISCRETION The freedom to exercise judgment—to make decisions without referring to a specific rule or receiving permission from someone else—is another important contingency of power in organizations.35 Discretion was an important factor in the power that JP Morgan’s chief
Developing your personal brand is one of the key drivers of career success. The first step is to identify your “DNA”: your distinct and notable attributes. This DNA is a talent or expertise that is both valuable and unique, which leverages the power of nonsubstitutability. “Be unique about something. Be a specialist in something. Be known for something. Drive something,” advises Barry Salzberg, global chief executive of Deloitte Touche Tohmatsu Limited. “That’s very, very important for success in leadership because there are so many highly talented people. What’s different about you—that’s your personal brand.”24
centrality
A contingency of power pertaining to the degree and nature of interdependence between the power holder and others.
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debating point HOW MUCH POWER DO CEOS REALLY POSSESS?
It seems reasonable to assume that chief executive officers wield enormous power. They have legitimate power by virtue of their position at the top of the organizational hierarchy. They also have tremendous reward and coercive power because they direct bud- gets and other resources toward or away from various individuals and work units. Refusing to go along with the CEO’s wishes can be an unfortunate career decision. Some CEOs also gain referent power because their lofty position creates an aura of reverence. Even in this era of equality and low power distance, most employ- ees further down the organization are in awe when the top exec- utive visits. CEO power is equally apparent through various contingencies. Top executives are almost always visible; some amplify that visibil- ity when they become synonymous with the company’s brand.29 CEOs also have high centrality. Few strategic decisions are put into motion unless the top dog is on board. CEOs are supposed to have replacements-in-waiting (to make them substitutable), yet more than a few don’t take enough time to mentor an heir-apparent. Some CEOs create an image of being too unique to be replicated. These points make it evident that CEOs have considerable power . . . except that many CEOs and a few experts don’t agree.30 New CEOs quickly discover that they no longer have expertise over a specific area of the company or subject matter. Instead, they oversee the entire organization and its vast external environment— a domain so broad that CEOs necessarily become jacks-of-all- trades and masters-of-none. Consequently, more than any other position, the CEO depends on the expertise of others to get things done. CEOs don’t even have much knowledge about what goes on in the organization. Reliable sources of information become more guarded when communicating to the top dog; employees further down the hierarchy carefully filter information so the CEO hears more of the good and less of the bad news. The biggest Achilles heel for CEO power is that their discretion is much more restricted than most people realize. To begin with, CEOs are rarely at the top of the power pyramid. Instead, they re- port to the company board, which can reject their proposals and fire them for acting contrary to the board’s wishes. The board’s power over the CEO is particularly strong when the company has
one or two dominant shareholders. But CEOs have been fired by the board even when the company’s ownership is dispersed and the CEO is the company’s founder! At one time, some CEOs had more power by serving as the board’s chair and personally select- ing board members. Today, corporate governance rules and laws have curtailed this practice, resulting in more power for the board and less power for the CEO.31
The CEO’s discretion is also held in check by the power of var- ious groups within the organization. One such group is the CEO’s own executive team. These executives constantly monitor their boss, because their careers and reputation are affected by his or her actions, and some of them are eager to fill the top job them- selves.32 Similarly, the actions of hospital CEOs are restricted to some extent by the interests and preferences of physicians asso- ciated with the hospital. One cross-cultural study found that the CEO’s discretion is limited in countries where laws offer greater rights to many stake- holders (rather than just shareholders) and give employees more protection from dismissal and other company actions. The study also reported that the CEO’s discretion is limited in cultures with high uncertainty avoidance, because these social values require execu- tives to take measured rather than bold steps toward change.33
You might think that CEOs have one remaining form of discre- tion: They can still overrule their vice presidents. Technically they can, but one group of experts points out that doing so has nasty repercussions. It triggers resentment and sends morale into a tailspin. Worse, this action motivates vice-presidents to seek out the CEO’s involvement much earlier, which overwhelms the CEO’s schedule and leaves less time for other priorities. A related ob- servation is that CEOs are the official voice of the organization, so they have much less discretion about what they can say in public or in private conversations. Finally, though it seems safe to claim that CEOs have high cen- trality, a few executives see their situation differently. “I am the least important person in this building,” claims Mike Brown, CEO of Provena United Samaritans Medical Center in Illinois. “This place would run without me for weeks, but the most important groups here are the people taking care of the patients.”34
investment office had in that organization. As was described in this chapter’s opening case study, the CIO department’s employees were relatively free to execute risky trades because they received limited compliance monitoring and their trades were sufficiently complex that the bank relied on them to estimate their gains and losses.
In contrast, consider the lack of power of many first-line supervisors. They may have le- gitimate, reward, and coercive power over employees, but this power is often curtailed by
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Chapter Ten Power and Influence in the Workplace 293
specific rules.36 Research indicates that managerial discretion varies considerably across in- dustries, and that managers with an internal locus of control are viewed as more powerful because they act like they have discretion, even when they don’t.37
The Power of Social Networks “It’s not what you know, but who you know that counts!” This often-heard statement reflects the idea that employees get ahead not just by developing their competencies but by locating themselves within social networks—social structures of individuals or social units (e.g., de- partments, organizations) that are connected through one or more forms of interdependence.38 Some networks are held together due to common interests, such as when employees who love fancy cars spend more time together. Other networks form around common status, expertise, kinship, or physical proximity. For instance, employees are more likely to form networks with coworkers who have common educational backgrounds and occupational interests.39
Social networks exist everywhere because people have a drive to bond. However, there are cultural differences in the norms of active network involvement. Several writers suggest that social networking is more of a central life activity in Asian cultures that emphasize guanxi, a Chinese term referring to an individual’s network of social connections. Guanxi is an expres- sive activity, because being part of a close-knit network of family and friends reinforces one’s self-concept. Guanxi is also an instrumental activity, because it is a strategy for receiving favors and opportunities from others. People across all cultures rely on social networks for both expressive and instrumental purposes, but these activities seem to be somewhat more explicit in Confucian cultures.40
SOCIAL CAPITAL AND SOURCES OF POWER Social networks generate power through social capital—the goodwill and resulting resources shared among members in a social network.41 Social networks produce trust, support, sympa- thy, forgiveness, and similar forms of goodwill among network members, and this goodwill motivates and enables network members to share resources with one another.42
Social networks offer a variety of resources, each of which potentially enhances the power of its members. Probably the best known resource is information from other network members, which improves the individual’s expert power.43 The goodwill of social capital opens communi- cation pipelines among those within the network. Network members receive valuable knowledge more easily and more quickly from fellow network members than do people outside that network.44 With better information access and timeliness, members have more power because their expertise is a scarce resource; it is not widely available to people outside the network.
Increased visibility is a second contributor to a per- son’s power through social networks. When asked to rec- ommend someone for valued positions, other network members more readily think of you than people outside the network. Similarly, they are more likely to mention your name when asked to identify people with expertise in your areas of knowledge. A third resource from social networks is increased referent power. People tend to gain referent power through networking, because members of
Do you have a guanxi orientation? Visit connect.mcgrawhill.com to assess how well you nurture interpersonal connections.
social networks
Social structures of individuals or social units that are connected through one or more forms of interdependence.
social capital
The knowledge and other resources available to people or social units (teams, organizations) from a durable network that connects them to others.
LO 10-3
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the network identify with or at least have greater trust in each other. Referent power is also apparent by the fact that reciprocity increases among network members as they be- come more embedded in the network.45
A common misperception is that social networks are free spirits that cannot be orches- trated by corporate leaders. In reality, company structures and practices can shape these net- works to some extent.46 But even if organizational leaders don’t try to manage social networks, they need to be aware of them. Indeed, people gain power in organizations by knowing what the social networks around them look like.47 “You look at an org chart within a company and you see the distribution of power that should be,” says a senior marketing executive at Thomson Reuters. “You look at the dynamics in the social networks [to] see the distribution of power that is. It reflects where information is flowing—who is really driving things.”48
GAINING POWER THROUGH SOCIAL NETWORKS How do individuals (and teams and organizations) gain the most social capital from social networks? To answer this question, we need to consider the number, depth, variety, and centrality of connections that people have in their networks.
Strong Ties, Weak Ties, Many Ties The volume of information, favors, and other social capital that people receive from networks usually increases with the number of people connected to them. Some people have an amazing capacity to maintain their connec- tivity with many people, and emerging communication technologies (Facebook, LinkedIn, etc.) have further amplified this capacity to maintain these numerous connections.50 At the same time, the more people you know, the less time and energy you have to form “strong ties.” Strong ties are close-knit relationships, which are evident from how often we interact with people, how much we share resources with them, and whether we have multiple or single-purpose relationships with them (e.g., friend, coworker, sports partner). The main advantages of having strong ties are that they offer resources more quickly and sometimes more plentifully than are available from weak ties (i.e., acquaintances).
Some minimal connection strength is necessary to remain in any social network, but strong connections aren’t necessarily the most valuable ties. Instead, having weak ties (i.e., being
Operations staff at a global oil and gas company were not using the best available production methods because they didn’t share best practices with their peers in other countries or with the company’s technical experts. Instead, employees shared information mainly with local coworkers and technical staff whom they already knew well. The company’s solution was to transfer some field staff to teams in other regions. These transfers eventually formed and strengthened network relationships across borders, which dramatically improved knowledge sharing and social capital. Within a year, productivity increased by 10 percent and costs due to poor quality fell by two-thirds.49
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Chapter Ten Power and Influence in the Workplace 295
merely acquaintances) with people from diverse networks can be more valuable than having strong ties (i.e., having close friendships) with people in similar networks.51 Why is this so? Strong ties—our close-knit circle of friends—tend to be similar to us, and similar people tend to have the same information and connections that we already have.52 Weak ties, on the other hand, are acquaintances who are usually different from us and therefore offer resources we do not possess. Furthermore, by serving as a “bridge” across several unrelated networks, we receive unique resources from each network rather than more of the same resources.
The strength of weak ties is most apparent in job hunting and career development.53 Peo- ple with diverse networks tend to be more successful job seekers because they have a wider net to catch new job opportunities. In contrast, people who belong to similar overlapping net- works tend to receive fewer leads, many of which they already knew about. As careers require more movement across many organizations and industries, you need to establish connections with people across a diverse range of industries, professions, and other spheres of life.
Social Network Centrality Earlier in this chapter, we explained that centrality is an important contingency of power. This contingency also applies to social networks.54 The more central a person (or team or organization) is located in the network, the more social capital and therefore more power he or she acquires. Centrality is the person’s importance in that network.
Three factors determine centrality in a social network. One factor is “betweenness,” which literally refers to how much you are located between others in the network. In Ex- hibit 10.3, Person A has high betweenness centrality because he or she is a gatekeeper, who controls the flow of information to and from many other people in the network. Person G has less betweenness, whereas Person F and several other network members in the diagram have no betweenness. The more betweenness you have, the more you control the distribu- tion of information and other resources to people on either side of you.
A second factor in centrality is the number or percentage of connections to others in the network (called “degree centrality”). Recall that the more people connected to you, the more resources (information, favors, etc.) will be available. The number of connections also in- creases centrality, because you are more visible to other members of the network. Although being a member of a network gives you access to resources in that network, having a direct connection to people makes that resource sharing more fluid.
A third factor in centrality is the “closeness” of the relationship with others in the network. High closeness refers to strong ties. It is depicted by shorter, more direct, and efficient paths or connections with others in the network. For example, Person A has fairly high closeness centrality because he or she has direct paths to most of the network, and many of these paths
A
B
C
D
E
F
G
H
I
J
K
Person A has high betweenness, closeness, and
degree (number) centrality
Person F has low betweenness, closeness, and degree (number) centrality
EXHIBIT 10.3
Centrality in Social Networks
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296 Part Three Team Processes
are short (implying efficient, high-quality communication links). Your centrality increases with closeness with others, because they are affected more quickly and significantly by you.
One last observation is that Exhibit 10.3 illustrates two clusters of people in the network. The gap between these two clusters is called a structural hole.55 Notice that Person A provides the main bridge across this structural hole (connecting to H and K in the other cluster). This bridging role gives Person A additional power in the network. By bridging this gap, Person A becomes a broker—someone who connects two independent networks and controls information flow between them. Research shows that the more brokering relation- ships you have, the more likely you are to get early promotions and higher pay.
The Dark Side of Social Networks Social networks are natural elements of all organizations, yet they can create a formidable barrier to those who are not actively con- nected.56 Women are often excluded from informal management networks because they do not participate in golf games and other male-dominated social events. Nina Smith, who leads Sage Software’s Business Management Division, has had several conversations with female executives about these power dynamics: “I’m still trying to knock down the Boys’ Club and I still have women at Sage coming to me and saying, ‘Nina, that’s the boys’ net- work and I can’t get in.’57 Several years ago, executives at Deloitte Touche Tohmatsu discov- ered that inaccessibility to powerful social networks partly explained why many junior female employees left the accounting and consulting firm before reaching partnership level. The global accounting and consulting firm now relies on mentoring, formal women’s net- work groups, and measurement of career progress to ensure that female staff members have the same career development opportunities as their male colleagues.58
Consequences of Power How does power affect the power holder? The answer depends to some extent on the type of power.59 When people feel empowered (high self-determination, meaning, competence, and impact), they believe they have power over themselves and freedom from being influenced by others. Empowerment tends to increase motivation, job satisfaction, organizational com- mitment, and job performance. However, this feeling of being in control and free from others’ authority also increases automatic rather than mindful thinking. In particular, people who feel powerful usually are more likely to rely on stereotypes, have difficulty empathizing, and generally have less accurate perceptions compared with people who have less power.60
The other type of power is one in which an individual has power over others, such as the legitimate, reward, and coercive power that managers have over employees in the workplace. This type of power produces a sense of duty or responsibility for the people over whom the power holder has authority. Consequently, people who have power over others tend to be more mindful of their actions and engage in less stereotyping.
Influencing Others So far, this chapter has focused on the sources and contingencies of power, as well as power derived from social networks. But power is only the capacity to influence others. It represents
the potential to change someone’s attitudes and behavior. Influence, on the other hand, refers to any behavior that attempts to alter someone’s attitudes or behavior.61 Influ- ence is power in motion. It applies one or more sources of power to get people to alter their beliefs, feelings, and activ- ities. Consequently, our interest in the remainder of this chapter is on how people use power to influence others.
structural hole
An area between two or more dense social network areas that lacks network ties.
influence
Any behavior that attempts to alter someone’s attitudes or behavior.
LO 10-4
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Chapter Ten Power and Influence in the Workplace 297
Influence tactics are woven throughout the social fabric of all organizations, because influ- ence is an essential process through which people coordinate their effort and act in concert to achieve organizational objectives. Influence is central to the definition of leadership. Influ- ence operates down, across, and up the corporate hierarchy. Executives ensure that subordi- nates complete required tasks. Employees influence coworkers to help them with their job assignments. And as Global Connections 10.1 describes, upward influence tactics—better known as managing your boss—are important for both personal career success and the achievement of the organization’s objectives.
The Art and Science of Managing Your Boss62
Iain McMath doesn’t like to have an avalanche of information hinder his executive decision process. “I do things based on intuition, so when I meet with my financial director I only need a one-page summary,” says the managing director of services firm Sodexo Motivation Solutions Ltd. in Surrey, England. Unfortunately, the financial director didn’t initially figure out McMath’s preferences. “She . . . was coming to the meetings with a file of 600 pages,” McMath recalls. “I would then get frustrated because she gave me too much information, and she would get frustrated because she thought I didn’t understand the importance of the data.” McMath’s financial director eventually adjusted her behav- ior to fit her boss’s preferences. This alignment not only re- duced conflict and frustration; it helped the financial director manage her boss by creating a more favorable impression. Managing your boss is the process of improving the relation- ship with your manager, for the benefit of each other and the organization. It includes developing bases of power that enable you to influence the manager to achieve organizational objec- tives. Most executives say it is a key factor in everyone’s career success. “It is crucial to understand how to manage your man- ager,” says Tracey Andrews, manager of learning and develop- ment at the British department store chain John Lewis. “Start by getting to know how your manager thinks and works and what his/her priorities are.” Along with aligning your behavior with the manager’s pre- ferred style, managing your boss involves becoming a valuable resource by making your manager’s job easier. This begins by performing your own job well. “Managing your manager is all about going that extra step,” advises Chris Barber, who leads a team of 12 people as director of a photography studio in Warwickshire, UK. “It doesn’t mean manipulating people . . . it’s
about doing your job well and helping your manager to get the best results.” Managing your boss also requires some impression management. For example, you need to “be a ‘problem solver’ rather than a ‘problem pyromaniac,’ ” says John Shetcliffe, Managing Director of John Shetcliffe Marketing in Hertfordshire, England. Problem pyromaniacs turn every- thing into problems for the boss to fix, whereas problem solvers offer the boss solutions when problems arise. Shetcliffe recommends a related impression management strategy for managing your boss: “Don’t supply just bad news; announce good news too. Otherwise, little by little you become the bad news!”
global connections 10.1
Managing your boss is an important form of influence in organizations. “It is crucial to understand how to manage your manager,” says an executive at British department store chain John Lewis.
Visit connect.mcgrawhill.com for activities and test questions to help you learn about influence tactics.
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298 Part Three Team Processes
TYPES OF INFLUENCE TACTICS Organizational behavior researchers have devoted considerable attention to the various types of influence tactics found in organizational settings. They do not agree on a definitive list, but the most commonly discussed influence tactics are identified in Exhibit 10.4 and de- scribed over the next few pages.63 The first five are known as “hard” influence tactics because they force behavior change through position power (legitimate, reward, and coercion). The latter three—persuasion, impression management, and exchange—are called “soft” tactics because they rely more on personal sources of power (referent, expert) and appeal to the target person’s attitudes and needs.
Silent Authority The silent application of authority occurs when someone complies with a request because of the requester’s legitimate power as well as the target person’s role expecta- tions.64 This deference occurs when you comply with your boss’s request to complete a partic- ular task. If the task is within your job scope and your boss has the right to make this request, then this influence strategy operates without negotiation, threats, persuasion, or other tactics. Silent authority is the most common form of influence in high power distance cultures.65
Assertiveness The supervisor at Otago Sheetmetal in New Zealand wasn’t subtle about trying to improve staff performance. He often called the office administrator “useless” and on one occasion threatened to “plant her one.” He also raised his voice and occasionally swore at other employees. One employee had his lawyer send a letter to Otago Sheetmetal, urging the supervisor to be less aggressive.66 This incident of workplace bullying is an extreme form of assertiveness—influencing others through explicit reminders of one’s obligations and some- times explicit threats of punishment. Assertiveness might be called “vocal authority,” because it involves actively applying legitimate and coercive power to influence others. This applica- tion includes persistently reminding the target of his or her obligations, frequently checking the target’s work, confronting the target, and using threats of sanctions to force compliance.
Information Control Earlier in this chapter, we explained that people with centrality in social networks have the power to control information. This power translates into influence
INFLUENCE TACTIC DESCRIPTIONEXHIBIT 10.4
Types of Influence Tactics in Organizations
Silent authority Influencing behavior through legitimate power without explicitly referring to that power base.
Assertiveness Actively applying legitimate and coercive power by applying pressure or threats.
Information control Explicitly manipulating someone else’s access to information for the purpose of changing their attitudes and/or behavior.
Coalition formation Forming a group that attempts to influence others by pooling the resources and power of its members.
Upward appeal Relying symbolically or in reality on people with higher authority or expertise to support our position.
Persuasion Using logical arguments, factual evidence, and emotional appeals to convince people of the value of a request.
Impression management Actively shaping, through self-presentation and other means, (including ingratiation) the perceptions and attitudes that others have of us. Includes
ingratiation, which refers to the influencer’s attempt to be more liked by the targeted person or group.
Exchange Promising benefits or resources in exchange for the target person’s compliance.
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Chapter Ten Power and Influence in the Workplace 299
when the power holder selectively distributes information such that it reframes the situ- ation and causes others to change their attitudes and/or behavior. Controlling information might include withholding in- formation that is more critical or favorable, or distributing information to some people but not to others. According to one major survey, almost half of employees believe co- workers keep others in the dark about work issues if it helps their own cause. Another study found that CEOs influence their board of directors by selectively feeding and withholding information.68
Coalition Formation When people lack sufficient power alone to influence others in the organization, they might form a coalition of people who support the proposed change. A coalition is influential in three ways.69 First, it pools the power and resources of many people, so the coali-
tion potentially has more influence than any number of people operating alone. Second, the coalition’s mere existence can be a source of power by symbolizing the legitimacy of the issue. In other words, a coalition creates a sense that the issue deserves attention because it has broad support. Third, coalitions tap into the power of the social identity process intro- duced in Chapter 3. A coalition is an informal group that advocates a new set of norms and behaviors. If the coalition has a broad-based membership (i.e., its members come from various parts of the organization), then other employees are more likely to identify with that group and, consequently, accept the ideas the coalition is proposing.
Upward Appeal Upward appeal involves calling upon higher authority or expertise or symbolically relying on these sources to support the influencer’s position. It occurs when someone says, “The boss likely agrees with me on this matter; let’s find out!” Upward appeal also occurs when relying on the authority of the firm’s policies or values. By reminding oth- ers that your request is consistent with the organization’s overarching goals, you are implying support from senior executives without formally involving them.
Persuasion Persuasion is one of the most effective influence strategies for career success. The ability to present facts, logical arguments, and emotional appeals to change another person’s attitudes and behavior is not just an acceptable way to influence others; in many societies, it is a noble art and a quality of effective leaders. The effectiveness of persuasion as an influence tactic depends on characteristics of the persuader, message content, communication medium, and the audience being persuaded (see
Exhibit 10.5).70 People are more persuasive when lis- teners believe they have ex- pertise and credibility, such as when the persuader does not seem to profit from the persuasion attempt and states a few points against the position.
64% of 16,517 workers polled worldwide say they have been bullied at work.
36% of British employees polled say they have broken down in tears in response to cruel taunts from bosses.
25% of 900 U.S. pharmacists surveyed say that management has used intimidation to get them to achieve performance targets.
24% of 5,600 U.S. employees say they have been yelled at by their boss in front of coworkers.
57% of 800 Canadian human resource professionals polled believe that managers bullying or intimidating employees is a significant problem in today’s workplace.
Bullying Bosses by the Numbers67
coalition
A group that attempts to influence people outside the group by pooling the resources and power of its members.
upward appeal
A type of influence in which someone with higher authority or expertise is called on in reality or symbolically to support the influencer’s position.
persuasion
The use of facts, logical arguments, and emotional appeals to change another person’s attitudes and behavior.
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300 Part Three Team Processes
The message is more important than the messenger when the issue is important to the audience. Persuasive message content acknowledges several points of view so the audience does not feel cornered by the speaker. The message should also be limited to a few strong arguments, which are repeated a few times, but not too frequently. The message should use emotional appeals (such as graphically showing the unfortunate consequences of a bad decision), but only in combination with logical arguments and specific recommendations to overcome the threat. Finally, message content is more persuasive when the audience is warned about opposing arguments. This inoculation effect causes listeners to generate counter-arguments to the anticipated persuasion attempts, which makes the opponent’s sub- sequent persuasion attempts less effective.71
Two other considerations when persuading people are the medium of communication and characteristics of the audience. Generally, persuasion works best in face-to-face conver- sations and through other media-rich communication channels. The personal nature of face-to-face communication increases the persuader’s credibility, and the richness of this channel provides faster feedback that the influence strategy is working. With respect to au- dience characteristics, it is more difficult to persuade people who have high self-esteem and intelligence, as well as a self-concept that is strongly tied to the opposing viewpoint.72
Impression Management (Including Ingratiation) Silent authority, assertiveness, information control, coalitions, and upward appeals are somewhat (or very!) forceful ways to influence other people. In contrast, a very “soft” influence tactic is impression management— that is, actively shaping the perceptions and attitudes that others have of us.73 Impression man-
agement mostly occurs through self-presentation. We craft our public images to create various perceptions, such as being important, vulnerable, threatening, or pleasant. For the most part, employees routinely engage in pleasant impression management behaviors to satisfy the basic norms of social behavior, such as the way they dress and how they behave toward colleagues and customers.
Impression management is a common strategy for people trying to get ahead in the workplace. In fact, career
inoculation effect
A persuasive communication strategy of warning listeners that others will try to influence them in the future and that they should be wary about the opponent’s arguments.
impression management
Actively shaping, through self- presentation and other means, the perceptions and attitudes that others have of us.
PERSUASION ELEMENT CHARACTERISTICS OF EFFECTIVE PERSUASIONEXHIBIT 10.5
Elements of Persuasion Persuader characteristics • Expertise • Credibility • No apparent profit motive • Appears somewhat neutral (acknowledges benefits of the
opposing view)
Message content • Multiple viewpoints (not exclusively supporting the preferred option)
• Limited to a few strong arguments (not many arguments) • Repeat arguments, but not excessively • Use emotional appeals in combination with logical arguments • Offer specific solutions to overcome the stated problems • Inoculation effect—audience warned of counterarguments
that opposition will present
Communication medium • Media-rich channels are usually more persuasive
Audience characteristics Persuasion is less effective when the audience: • has higher self-esteem • has higher intelligence • has a self-concept tied to an opposing position
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Chapter Ten Power and Influence in the Workplace 301
professionals encourage people to develop a personal “brand,” that is, form and display an (accurate) impression of their own distinctive, competitive advantages.74 Furthermore, people who master the art of personal branding rely on impression manage- ment through distinctive personal characteristics such as black shirts, tinted hair, or unique signatures. “In today’s economy, your personal brand is being judged every day,” says Coca-Cola senior vice president Jerry Wilson. “Either position yourself, or others will position you.”75
One subcategory of impression management is ingratiation, which is any attempt to increase liking by, or perceived similar- ity to, some targeted person.76 Ingratiation comes in several forms. Employees might flatter their boss in front of others, demonstrate that they have similar attitudes as their boss (e.g., agreeing with the boss’s proposal), or ask their boss for advice. Ingratiation is one of the more effective influence tactics for boosting a person’s career success (i.e., performance appraisal feedback, salaries, and promotions).77 However, people who en- gage in high levels of ingratiation are less (not more) influential and less likely to get promoted.78 Why the opposite effect? Those who engage in too much ingratiation are viewed as
insincere and self-serving. The terms “apple polishing” and “brown-nosing” are applied to those who ingratiate to excess or in ways that suggest selfish motives for the ingratiation.
Exchange Exchange activities involve the promise of benefits or resources in exchange for the target person’s compliance with your request. Negotiation is an integral part of exchange influence activities. For instance, you might negotiate with your boss for a day off in return for working a less desirable shift at a future date. Exchange also includes applying the norm of reciprocity that we described earlier, such as reminding the target of past benefits or favors with the expectation that the target will now make up for that debt. Earlier in this chapter we explained how people gain power through social networks. They also use norms of reciprocity to influence others in the network. Active networkers build up “exchange credits” by helping colleagues in the short term for reciprocal benefits in the long term.
CONSEQUENCES AND CONTINGENCIES OF INFLUENCE TACTICS Faced with this variety of influence strategies, you are probably asking: Which ones are best? The best way to answer this question is to describe how people react when others try to in- fluence them: resistance, compliance, or commitment (see Exhibit 10.6).79 Resistance occurs when people or work units oppose the behavior desired by the influencer. At the extreme, they refuse to engage in the behavior. However, there are degrees of resistance, such as when people perform the required duties yet demonstrate their continued opposition by perform- ing the tasks poorly or continuing to complain about the imposed work. Compliance occurs when people are motivated to implement the influencer’s request for purely instrumental reasons. Without external sources to prompt the desired behavior, compliance would not occur. Furthermore, compliance usually involves engaging in the behavior with no more effort than is required. Commitment is the strongest outcome of influence, whereby people identify with the influencer’s request and are highly motivated to implement it even when extrinsic sources of motivation are not present.
Generally, people react more favorably to “soft” tactics than to “hard” tactics. Soft influence tactics rely on personal sources of power (expert and referent power), which tend to build commitment to the influencer’s request. In contrast, hard tactics rely on position power (legitimate, reward, and coercion), so they tend to produce compliance
Credit: © Ted Goff.
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302 Part Three Team Processes
or, worse, resistance. Hard tactics also tend to undermine trust, which can hurt future relationships.
Apart from the general preference for soft rather than hard tactics, the most appropriate influence strategy depends on a few contingencies. One obvious contingency is which sources of power are strongest. Those with expertise tend to have more influence using persuasion, whereas those with a strong legitimate power base are usually more successful applying silent authority.80 A second contingency is whether the person being influenced is higher, lower, or at the same level in the organization. As an example, employees may face adverse career consequences by being too assertive with their boss. Meanwhile, supervisors who engage in ingratiation and impression management tend to lose the respect of their staff.
Finally, the most appropriate influence tactic depends on personal, organizational, and cultural values.81 People with a strong power orientation might feel more comfortable using assertiveness, whereas those who value conformity would make greater use of upward appeals. At an organizational level, firms with a competitive culture might encourage more use of infor- mation control and coalition formation, whereas companies with a learning orientation would likely encourage more influence through persuasion. The preferred influence tactics also vary across societal cultures. Research indicates that ingratiation is much more common among managers in the United States than in Hong Kong, possibly because this tactic disrupts the more distant roles that managers and employees expect in high power distance cultures.
Soft influence
tactics
Soft fluenceinf acticsta
Hard influence
tactics
Persuasion
Impression management (including ingratiation)
Exchange
Silent authority Upward appeal
Coalition formation Information control
Assertiveness
(including ingratia
Exchange
Silent auutthorit Upward aaappea
Coalition fooormat
Commitment
Compliance
Resistance
EXHIBIT 10.6
Consequences of Hard and Soft Influence Tactics
How politically charged is your school? Visit connect.mcgrawhill. com to assess the level of organizational politics and to assist your learning about this topic and influence tactics.
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Chapter Ten Power and Influence in the Workplace 303
Organizational Politics You may have noticed that organizational politics has not been mentioned yet, even though some of the practices or examples described over the past few pages are usually considered political tactics. The phrase was carefully avoided because, for the most part, organizational politics is in the eye of the beholder. You might perceive a coworker’s attempt to influence the boss as acceptable behavior for the good of the organization, whereas someone else might perceive the coworker’s tactic as brazen organizational politics.
This perceptual issue explains why OB experts increasingly discuss influence tactics as behaviors and organizational politics as perceptions.82 The influence tactics described ear- lier are perceived as organizational politics when they seem to be self-serving behaviors at the expense of others and possibly contrary to the interests of the entire organization. Of course, some tactics are so blatantly selfish and counterproductive that almost every- one correctly sees them as organizational politics. In other situations, however, a person’s behavior might be viewed as political or in the organization’s best interest, depending on the observer’s point of view.
Employees who experience organizational politics have lower job satisfaction, organiza- tional commitment, organizational citizenship, and task performance, as well as higher levels of work-related stress and motivation to leave the organization. “A politically charged work environment can hinder productivity, erode trust, and lead to morale and retention issues,” says Renan Silva, a corporate project management office specialist at Serasa Expe- rian, a credit bureau in Säo Paulo, Brazil.83 And because political tactics serve individuals rather than organizations, they potentially divert resources away from the organization’s effective functioning and potentially threaten its survival.
MINIMIZING ORGANIZATIONAL POLITICS Researchers have identified several conditions that encourage organizational politics, so we can identify corresponding strategies to keep political activities to a minimum.84 First, orga- nizational politics are triggered by scarce resources in the workplace. When budgets are slashed, people rely on political tactics to safeguard their resources and maintain the status quo. Although it is not easy to maintain or add resources, this action may be less costly than the consequences of organizational politics.
Second, organizational politics can be suppressed when resource allocation decisions are clear and simple. Political tactics are fueled by ambiguous or complex rules, or a lack of formal rules, because those tactics help people get what they want when there are no struc- tural guidelines for decision making. Third, organizational change tends to bring out more organizational politics, mainly because change creates ambiguity and threatens the employ- ee’s power and other valued resources.86 Consequently, leaders need to apply the organiza- tional change strategies that we describe in Chapter 15, including communication, learning, and involvement. Research shows that employees who remain informed of what is going on in the organization and participate in organizational decisions are less likely to engage in organizational politics.
Third, political behavior is more common in work units and organizations where it is tolerated and reinforced. Some companies seem to nurture self-serving behavior through reward systems and the role modeling of organizational leaders. To minimize political norms, the organization needs to diagnose and alter systems or role modeling that support self-serving behavior. They should embrace organizational values that oppose political tac- tics, such as altruism and a customer focus. One of the most important strategies is for leaders to become role models of organizational citizenship rather than symbols of successful organizational politicians.
organizational politics
Behaviors that others perceive as self-serving tactics at the expense of other people and possibly the organization.
LO 10-5
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304 Part Three Team Processes
10-1 Describe the dependence model of power and the five sources of power in organizations.
Power is the capacity to influence others. It exists when one party perceives that he or she is dependent on the other for something of value. However, the dependent person must also have countervailing power—some power over the dominant party—to maintain the relationship, and the parties must have some level of trust. There are five power bases. Legitimate power is an agreement among organizational members that people in certain roles can
request certain behaviors of others. This power has restrictions, represented by the target person’s zone of indifference. It also in- cludes the norm of reciprocity (a feeling of obligation to help someone who has helped you), as well as control over the flow of information to others. Reward power is derived from the ability to control the allocation of rewards valued by others and to remove negative sanctions. Coercive power is the ability to apply punish- ment. Expert power is the capacity to influence others by possess- ing knowledge or skills that they value. An important form of expert power is the (perceived) ability to manage uncertainties
chapter summary
The vacation roster is a scarce resource, and resource scarcity brings out the worst office politics. One recent poll reported that 13 percent of British employees refused to tell others when they would take their vacations, so coworkers wouldn’t book the same dates. Another 7 percent said they protected their vacation plans by lying to coworkers about those plans. Five percent were even more Machiavellian; they strategically booked vacation dates that scuttled the preferred holiday times of a disliked coworker. “I know this is true,” says an employee from Newport, Wales, who was not part of the survey. “I had a colleague who knew my holiday habits and would go in on January the 2nd and book every week that he knew I habitually had for holidays because he knew my wife’s holidays were fixed and could not be changed. He didn’t really need those days; he did it out of spite.”85
How Machiavellian are you? Visit connect.mcgrawhill.com to assess how much you value the political tactics espoused by Machiavelli.
Personal Characteristics Several personal characteristics affect an individual’s moti- vation to engage in self-serving behavior.87 This includes a strong need for personal as opposed to socialized power. Those with a need for personal power seek power for its own sake and try to acquire more power. Some individuals have strong Machiavellian values. Machiavellianism is named after Niccolò Machiavelli, the sixteenth-century Italian philoso- pher who wrote The Prince, a famous treatise about political behavior. People with high Machiavellian values are comfortable with getting more than they deserve, and they believe that deceit is a natural and acceptable way to achieve this goal. They seldom trust coworkers and tend to use cruder influence tactics, such as bypassing one’s boss or being assertive, to get their own way.88
Machiavellian values
The beliefs that deceit is a natural and acceptable way to influence others and that getting more than one deserves is acceptable.
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critical thinking questions 1. What role does countervailing power play in the power rela-
tionship? Give an example of one of your own encounters with countervailing power at school or work.
2. Until recently, a mining company’s data resided in the de- partment that was responsible for that information. Property
data were on the computers in land administration, hydro- carbon data were in the well administration group, maps were found in the map department, and so on. The execu- tive team concluded that this arrangement was dysfunc- tional, so the CEO announced that all information would
centrality, p. 290 charisma, p. 290 coalition, p. 299 countervailing power, p. 285 impression management, p. 300 influence, p. 296 inoculation effect, p. 300
legitimate power, p. 286 Machiavellian values, p. 304 norm of reciprocity, p. 287 organizational politics, p. 303 persuasion, p. 299 power, p. 284 referent power, p. 289
social capital, p. 293 social networks, p. 293 structural hole, p. 296 substitutability, p. 290 upward appeal, p. 299
key terms
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in the business environment. People have referent power when others identify with them, like them, or otherwise respect them.
10-2 Discuss the four contingencies of power. Four contingencies determine whether these power bases translate into real power. Individuals and work units are more powerful when they are non-substitutable, such that there is a lack of alter- natives. Employees, work units, and organizations reduce sub- stitutability by controlling tasks, knowledge, and labor and by differentiating themselves from competitors. A second contingency is centrality. People have more power when they have high central- ity, which means that many people are quickly affected by their actions. The third contingency, visibility, refers to the idea that power increases to the extent that a person’s or work unit’s compe- tencies are known to others. Discretion, the fourth contingency of power, refers to the freedom to exercise judgment. Power increases when people have the freedom to use their power.
10-3 Explain how people and work units gain power through social networks.
Social networks are social structures of individuals or social units (e.g., departments, organizations) that connect to one another through one or more forms of interdependence. People receive power in social networks through social capital, which is the goodwill and resulting resources shared among members in a social network. Three main resources from social networks are information, visibility, and referent power. Employees gain social capital through their relationship in the social network. Social capital tends to increase with the number of network ties. Strong ties (close-knit relationships) can also increase social capital because these connections offer more resources more quickly. However, having weak ties with people from diverse networks can be more valuable than having strong ties with people in similar networks. Weak ties provide more re- sources that we do not already possess. Another influence on social capital is the person’s centrality in the network. Network centrality is determined in several ways, including the extent to
which you are located between others in the network (between- ness), how many direct ties you have (degree), and the closeness of these ties. People also gain power by bridging structural holes—linking two or more clusters of people in a network.
10-4 Describe eight types of influence tactics, three conse- quences of influencing others, and three contingen- cies to consider when choosing an influence tactic.
Influence refers to any behavior that attempts to alter someone’s attitudes or behavior. The most widely studied influence tactics are silent authority, assertiveness, information control, coalition formation, upward appeal, impression management, persuasion, and exchange. “Soft” influence tactics such as friendly persua- sion and subtle ingratiation are more acceptable than “hard” tac- tics such as upward appeal and assertiveness. However, the most appropriate influence tactic also depends on the influencer’s power base; whether the person being influenced is higher, lower, or at the same level in the organization; and personal, or- ganizational, and cultural values regarding influence behavior.
10-5 Identify the organizational conditions and personal characteristics associated with higher organiza- tional politics, as well as ways to minimize organiza- tional politics.
Organizational politics refer to influence tactics that others per- ceive to be self-serving behaviors, sometimes contrary to the in- terests of the organization. It is more common when ambiguous decisions allocate scarce resources and when the organization tolerates or rewards political behavior. Individuals with a high need for personal power and strong Machiavellian values have a higher propensity to use political tactics. Organizational politics can be minimized by providing clear rules for resource alloca- tion, establishing a free flow of information, using education and involvement during organizational change, supporting team norms and a corporate culture that discourages political behavior, and having leaders who role model organizational citizenship rather than political savvy.
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CASE STUDY: RESONUS CORPORATION By Steven L. McShane, based on a case written by John A. Seeger
Frank Choy is normally a quiet person, but his patience has already been worn thin by interdepartmental battles. Choy joined Resonus Corporation, a hearing aid designer and manufacturer, eight months ago as director of engineering. Production of the latest product has been delayed by two months, and Choy’s engineering services department (ESD)—which prepares final manufacturing specifica- tions—is taking the heat as the main culprit for these delays. Similar delays have been occurring at Resonus for the past few years. The previous engineering director was fired after 18 months; the director before him quit after about the same amount of time. Bill Hunt, CEO of Resonus for the past 15 years, re- sponded to these problems by urging everyone to remain civil. “I’m sure we can resolve these differences if we just learn to get along better,” he said whenever a dispute broke out. Hunt disliked firing anyone, but he felt the previous engi- neering director was too confrontational. “I spent too much time smoothing out arguments when he was here,” Hunt thought to himself soon after Choy was hired. “Frank, on the other hand, seems to fit into our culture of collegiality.” Hunt was groomed by the company’s founder and took great pride in preserving the organization’s family spirit. He
also discouraged bureaucracy, believing that Resonus oper- ated best through informal relationships among its managers. Most Resonus executives were similarly informal, except Jacqui Blanc, the production director, who insisted on strict guidelines. Hunt tolerated Blanc’s formal style, because soon after joining Resonus five years ago, she discovered and cleaned up fraudulent activity involving two production managers and a few suppliers. The organizational chart shows that Frank Choy oversees two departments: ESD and research. In reality, “Doc” Kalandry, the research director, informally reports directly to the CEO (Hunt) and has never considered the director of engineering as his boss. Hunt actively supports this informal reporting re- lationship because of Doc’s special status in the organization. “Doc Kalandry is a living genius,” Hunt told Choy soon after he joined the firm. “With Doc at the helm of research, this company will continue to lead the field in innovation.” Hunt’s first job at Resonus was in the research group, and Choy sus- pected that Hunt still favored that group. Everyone at Resonus seems to love Doc’s successful prod- ucts, his quirky style, and his over-the-top enthusiasm, but some of Choy’s ESD staff are also privately concerned. Says one engineer: “Doc is like a happy puppy when he gets a new
be placed on a central server system so it is widely accessible. If someone needs a color map, for example, he or she can re- trieve it from the central server without going through the map department. Rather than welcome the change, employ- ees in several departments complained, offering several arguments why other groups should not have direct access to their data files. Some departments tried to opt out of the centralized server system. Using the model of sources and contingencies of power, explain why some groups opposed the central server model of data access.
3. You have just been hired as a brand manager of toothpaste for a large consumer products company. Your job mainly in- volves encouraging the advertising and production groups to promote and manufacture your product more effectively. These departments aren’t under your direct authority, though company procedures indicate that they must com- plete certain tasks requested by brand managers. Describe the sources of power you can use to ensure that the produc- tion and advertising departments will help you make and sell toothpaste more effectively.
4. How does social networking increase a person’s power? What social networking strategies could you initiate now to potentially enhance your future career success?
5. List the eight influence tactics described in this chapter in terms of how they are used by students to influence their college instructors. Which influence tactic is applied most often? Which is applied least often, in your opinion? To
what extent is each influence tactic considered legitimate behavior or organizational politics?
6. Consider a situation in which there is a only one female member on a team of six people, and she is generally ex- cluded from informal gatherings of the team. What kind of influence tactics can she use to address this situation?
7. In the mid-1990s, the CEO of Apple Computer invited the late Steve Jobs (who was not associated with the company at the time) to serve as a special adviser and raise morale among Apple employees and customers. While doing so, Jobs spent more time advising the CEO on how to cut costs, redraw the organization chart, and hire new people. Before long, most of the top people at Apple were Jobs’ colleagues, who began to systematically evaluate and weed out teams of Apple employees. While publicly supporting Apple’s CEO, Jobs privately criticized him and, in a show of nonconfidence, sold the 1.5 million shares of Apple stock he had received. This action caught the attention of Apple’s board of direc- tors, who soon after decided to replace the CEO with Steve Jobs. The CEO claimed Jobs was a conniving back-stabber who used political tactics to get his way. Others suggest that Apple would be out of business today if he hadn’t taken over the company. In your opinion, were Steve Jobs’ actions examples of organizational politics? Justify your answer.
8. This book frequently emphasizes that successful companies engage in organizational learning. How do political tactics interfere with organizational learning objectives?
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TEAM EXERCISE: DECIPHERING THE NETWORK PURPOSE This exercise is designed to help students inter- pret social network maps and their implications for organiza- tional effectiveness.
MATERIALS The instructor will distribute several social network diagrams to each student.
INSTRUCTIONS (SMALLER CLASSES) The instructor will organize students into teams (typically four to seven people, depending on class size). Teams will examine each social network diagram to answer the following questions:
1. What aspects of this diagram suggest that the network is not operating as effectively as possible?
2. Which people in this network seem to be most powerful? Least powerful? What information or features of the dia- gram led you to this conclusion?
3. If you were responsible for this group of people, how would you change this situation to improve their effectiveness?
After teams have diagnosed each social network map, the class will debrief by hearing each team’s assessments and recommendations.
INSTRUCTIONS (LARGER CLASSES) This activity is also possible in large classes by projecting each social net- work diagram on a screen and giving students a minute or two to examine the diagram. The instructor can then ask specific questions to the class, such as pointing to a specific individual in the network and asking whether he or she has high or low power, what level of centrality is apparent, and whether the individual’s connections are mainly strong or weak ties. The instructor might also ask which quadrant on the map indicates the most concern and then allow individ- ual students to provide their explanations.
product idea. He delights in the discovery but also won’t let go of it. He also gets Hunt too enthusiastic. But Doc’s too optimistic; we’ve had hundreds of production change orders already this year. If I were in Frank’s shoes, I’d put my foot down on all this new development.” Soon after joining Resonus, Choy realized that ESD em- ployees get most of the blame and little of the credit for their work. When production staff find a design fault, they directly contact the research design engineer who developed the tech- nology, rather than the ESD group who prepare the specifica- tions. Research engineers willingly work with production, because they don’t want to let go of their project. “The de- signers seem to feel they’re losing something when one of us in ESD tries to help,” Choy explains. Meanwhile, production supervisors regularly critique ESD staff, whereas they tend to accept explanations from the higher-status research department engineers. “Production routinely complains about every little specification error, many of which are due to design changes made by the research group,” says one frustrated ESD technician. “Many of us have more than 15 years experience in this work. We shouldn’t have to prove our ability all the time, but we spend as much time defending ourselves as we do getting the job done.” Choy’s latest troubles occurred when Doc excitedly told CEO Hunt about new nano-processor technology that he wanted to install in the forthcoming high-end hearing aid prod- uct. As with most of Doc’s previous last-minute revisions, Hunt endorsed this change and asked Choy and Blanc (the production director) to show their commitment, even though production was scheduled to begin in less than three weeks. Choy wanted to protest, knowing that his department would have to tackle unex- pected incompatibility design errors. Instead, he quietly agreed
to Hunt’s request to avoid acting like his predecessor and facing similar consequences (getting fired). Blanc curtly stated that her group was ready if Choy’s ESD unit could get accurate produc- tion specifications ready on time and if the sales director would stop making wild delivery promises to customers. When Doc’s revised design specs arrived more than a week later, Choy’s group discovered numerous incompatibilities that had to be corrected. Even though several ESD staff were assigned to 12-hour days on the revisions, the final produc- tion specifications weren’t ready until a couple of days after the deadline. Production returned these specs two days later, noting a few elements that required revision because they were too costly or difficult to manufacture in their current form. By that time, the production director had to give prior- ity to other jobs and moved the new hearing aid product fur- ther down the queue. This meant that manufacturing of the new product was delayed by at least two months. The sales director was furious and implied that Frank Choy’s incompe- tence was to blame for this catastrophe.
Discussion Questions
1. What sources and contingencies of power existed among the executives and departments at Resonus?
2. What influence tactics were evident in this case study? Would you define any of these influence activities as organizational politics? Why or why not?
3. Suppose you are a consultant invited to propose a solution to the product delay problems facing this organization. What would you recommend, particularly regarding power dynamics among the executives and departments?
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SELF-ASSESSMENT
HOW DO YOU INFLUENCE COWORKERS AND OTHER PEERS? PURPOSE This exercise is designed to help you understand different forms of influence when working with coworkers (i.e., people at the same organizational level), as well as esti- mate your preference for each influence tactic in this context.
INSTRUCTIONS Think about the occasions when a coworker disagreed with you, opposed your preference, or was reluctant to actively support your point of view about something at work. These conflicts might have been about company policy, assignment of job duties, distribution of re- sources, or any other matter. What did you do to try to get the coworker to support your preference? The statements below describe ways that people try to in- fluence coworkers. Thinking about your own behavior over
the past six (6) months, how often did you engage in each of these behaviors to influence coworkers (i.e., people at a simi- lar level in the organization)? Circle the most accurate num- ber for each statement. When done, use the scoring key in the Appendix to calculate your results. This exercise is com- pleted alone so students assess themselves honestly without concerns of social comparison. However, class discussion will focus on the types of influence in organizations and which influence tactics are most and least successful or popular when influencing coworkers.
Note: If you have not been in the workforce recently, complete this instru- ment thinking about influencing another student instead of a coworker.
TEAM EXERCISE: MANAGING YOUR BOSS PURPOSE This exercise is designed to help students apply influence tactics to real situations, in this case influencing people above them in the hierarchy.
MATERIALS None.
INSTRUCTIONS (FOR SMALLER CLASSES
ONLY) The instructor will organize students into teams (typically four to seven people, depending on class size). Teams will identify specific strategies to influence people above them in the organizational hierarchy. Teams should consider each of
the various influence tactics to determine specific practices that might change the attitudes and behavior of their bosses. During this team discussion, students should determine which influence tactics are most and least appropriate for managing their bosses. Teams should also consider relevant concepts from other chapters, such as perceptions (Chapter 3), emotions and attitudes (Chapter 4), motivation (Chapter 5), and (if already covered in the course) conflict (Chapter 11). The class will regroup, and each team will present specific recommendations for influencing people in higher positions.
OVER THE PAST SIX MONTHS, HOW OFTEN DID YOU USE RARELY/ ALMOST THE FOLLOWING TACTICS TO INFLUENCE COWORKERS? NEVER SELDOM SOMETIMES OFTEN ALWAYS
Coworker Influence Scale
(continued)
1. Gave the coworker logical reasons why the 1 2 3 4 5 matter should be decided in my favor.
2. Made my authority or expertise regarding the 1 2 3 4 5 issue known without being obvious about it.
3. Tried to negotiate a solution, where I would offer 1 2 3 4 5 something in return for the coworker’s support.
4. Demanded that the matter should be resolved in 1 2 3 4 5 my favor.
5. Avoided showing the coworker information that 1 2 3 4 5 opposed my preference.
6. Enlisted the support of other employees so the 1 2 3 4 5 coworker would see that I have the more popular preference.
7. Claimed or demonstrated that my preference has 1 2 3 4 5 management support.
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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.
OVER THE PAST SIX MONTHS, HOW OFTEN DID YOU USE RARELY/ ALMOST THE FOLLOWING TACTICS TO INFLUENCE COWORKERS? NEVER SELDOM SOMETIMES OFTEN ALWAYS
© 2011 Steven L. McShane.
8. Said something positive about the coworker, hoping 1 2 3 4 5 this would increase his/her support for my views.
9. Tried to convince the coworker using factual 1 2 3 4 5 information and logic.
10. Subtly let the coworker know about my expertise 1 2 3 4 5 on the matter.
11. Offered to support or assist the coworker on 1 2 3 4 5 something if he/she would agree with me on this matter.
12. Showed impatience or frustration with the 1 2 3 4 5 coworker’s opposition to my preference.
13. Presented information in a way that looked 1 2 3 4 5 better for my preference.
14. Claimed that other staff support my position 1 2 3 4 5 on this matter.
15. Suggested or threatened to have the issue 1 2 3 4 5 resolved by higher management.
16. Became friendlier toward the coworker, hoping 1 2 3 4 5 this would create a more favorable opinion of my viewpoint.
17. Helped the coworker see the benefits of my 1 2 3 4 5 preference and/or the negative outcomes of other choices.
18. Quietly or indirectly showed the coworker my 1 2 3 4 5 authority, expertise, or right to have this matter decided in my favor.
19. Mentioned that I had helped the coworker in the 1 2 3 4 5 past, hoping that he/she would reciprocate by supporting me now.
20. Let the coworker know that I might be 1 2 3 4 5 disagreeable or uncooperative in the future if he/she did not support me now.
21. Framed and selected information that mainly 1 2 3 4 5 agreed with (rather than opposed) my preference.
22. Made sure that at least a few other people were 1 2 3 4 5 on my side of this issue.
23. Pointed out that my view was consistent with 1 2 3 4 5 the company’s values or policies.
24. Showed more respect toward the coworker, 1 2 3 4 5 hoping this would encourage him/her to support me.
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Conflict and Negotiation in the Workplace
le a
rn in
g o
b je
ct iv
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310
c ha pter
After reading this chapter, you should be able to:
11-1 Define conflict and debate its positive and negative consequences in the workplace.
11-2 Distinguish task from relationship conflict and describe three strategies to minimize relationship conflict during task conflict episodes.
11-3 Diagram the conflict process model and describe six structural sources of conflict in organizations.
11-4 Outline the five conflict handling styles and discuss the circumstances in which each would be most appropriate.
11-5 Apply the six structural approaches to conflict management and describe the three types of third-party dispute resolution.
11-6 Describe the bargaining zone model and outline strategies that skilled negotiators use to claim value and create value in negotiations.
11
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’Oreal Canada boasts a diverse workforce. Its 1,200 employees represent 61 nationalities, 42 percent are women, and employees are spread across
the three main generations: baby boomers (25%), Gen-X (33%), and Gen-Y (42%).
These different forms of diversity have been immensely beneficial to the company
and society. “From diversity stems stimulating, rich debates that propel our teams
to think forward and encourage innovation,” says Marie-Josée Lamothe, L’Oréal
Canada’s chief marketing officer and chief communications officer.
But rich debates can easily deteriorate into dysfunctional battles when
participants fail to keep their differences in perspective. L’Oreal Canada’s executives
anticipated this risk several years ago as its workforce demography began shifting
to a balance across the three generations. (Gen-Y is now its largest cohort.)
These generations differed in their needs and expectations, which might lead to
dysfunctional intergenerational conflict. “We realized we could be faced with an
interesting problem,” recalls Marjolaine Rompré, L’Oreal Canada’s director of
learning and development. “We called it Generation Shock.”
Rather than have that generation shock turn into dysfunctional conflict, L’Oreal
Canada introduced a full-day seminar, called Valorizing Intergenerational Differences,
which aims to help employees across all generations understand and value each
other’s perceptions, values, and expectations. In one part of the program, for
example, employees sit together in their generational cohorts and ask questions
of employees in the other cohorts. “Each group is interested and surprised to see
what’s important to the other group,” says Rompré.
Participants say the program leverages the company’s creative potential by
minimizing dysfunctional conflict and improving relations with coworkers. “The
Valorizing Intergenerational Differences training really helped me understand
where people from each generation are coming from,” says key account manager
Ashley Bancroft, shown at left in this photo with national accounts directors
Christian Bouchard and Wendy Stewart. It has also helped L’Oreal Canada become
one of the best places to work in Canada, and one of the country’s best diversity
employers.1
’O re
th
TT L
311
L’Oreal Canada employees (from left) Ashley Bancroft, Christian Bouchard, and Wendy Stewart say the company’s Valorizing Intergenerational Differences training has helped them leverage the company’s creative potential by minimizing dysfunctional conflict and improving relations with coworkers.
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312 Part Three Team Processes
L’Oreal Canada has prospered through diversity, but it has also proactively addressed the potential downside of dysfunctional conflict by introducing a training program to improve mutual understanding. This chapter investigates the dynamics of conflict in organizational settings. It begins by defining conflict and discussing the age-old question: Is conflict good or bad? Next, we look at the conflict process and examine in detail the main factors that cause or amplify conflict. The five styles of handling conflict are then described, followed by discussion of the main structural approaches to conflict management. Next, we address the role of managers and others in third-party conflict resolution. The final section of this chapter reviews key issues in negotiating conflict resolution.
The Meaning and Consequences of Conflict One of the facts of life is that organizations are continuously adapting to their external envi- ronment and introducing better ways to transform resources into outputs (see Chapter 1). There is no clear road map for how companies should change, and employees and other stakeholders rarely agree completely on the direction or form of these adjustments. Employ- ees have divergent personal and work goals, which leads them to prefer different directions for the organization to take.
These differences in goals and viewpoints, along with a few other key factors described in this chapter, lead to conflict. Conflict is a process in which one party perceives that its inter- ests are being opposed or negatively affected by another party.2 It may occur when one party obstructs another’s goals in some way, or just from one party’s perception that the other party is going to do so. Conflict is ultimately based on perceptions; it exists whenever one party believes that another might obstruct its efforts, whether or not the other party actually intends to do so.
IS CONFLICT GOOD OR BAD? One of the oldest debates in organizational behavior is whether conflict is good or bad—or, more recently, what forms of conflict are good or bad—for organizations.3 The dominant view over most of this time has been that conflict is dysfunctional.4 Almost a century ago, European administrative theorists Henri Fayol and Max Weber emphasized that organiza- tions work best through harmonious relations. Elton Mayo, who founded Harvard Univer- sity’s human relations school and is considered one of the founders of organizational behavior, was convinced that employee–management conflict undermines organizational effectiveness. These and other critics warned that even moderately low levels of disagree- ment tatter the fabric of workplace relations and sap energy from productive activities. Disagreement with one’s supervisor, for example, wastes productive time, violates the hierar- chy of command, and challenges the efficient assignment of authority (in which managers make the decisions and employees follow them).
Although the “conflict-is-bad” perspective is now considered too simplistic, conflict cer- tainly can have negative consequences in some circumstances (see Exhibit 11.1).5 Conflict has been criticized for consuming otherwise productive time. For instance, almost one-third of the 5,000 employees recently surveyed across nine countries reported that they are frequently or always dealing with workplace conflict. More than half of the employees in Germany complained that conflict was consuming their workday.6
Conflict can undermine job performance in other ways.7 It is often stressful, which con- sumes personal energy and distracts employees from their work. Conflict discourages people engaged in the dispute from sharing resources and coordinating with each other. It can reduce job satisfaction, resulting in higher turnover and lower customer service. Conflict fuels organizational politics, such as motivating employees to find ways to undermine the credibility of their opponents. Decision making suffers because people are less motivated to communicate valuable information. Ironically, with less communication, the feuding parties
LO 11-1
conflict
The process in which one party perceives that its interests are being opposed or negatively affected by another party.
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Chapter Eleven Conflict and Negotiation in the Workplace 313
are more likely to escalate their disagreement because each side relies increasingly on dis- torted perceptions and stereotypes of the other party. Finally, conflict among team members may undermine team cohesion and performance. As Global Connection 11.1 describes, airlines and customers alike suffer when flight crew members don’t get along.
Benefits of Conflict In the 1920s, when most organizational scholars viewed conflict as inherently dysfunctional, educational philosopher and psychologist John Dewey praised its benefits: “Conflict is the gadfly of thought. It stirs us to observation and memory. It in- stigates to invention. It shocks us out of sheeplike passivity, and sets us at noting and con- triving.”9 Three years later, political science and management theorist Mary Parker Follett similarly remarked that the “friction” of conflict should be put to use rather than treated as an unwanted consequence of differences.10
But it wasn’t until the 1970s that conflict management experts began to embrace the “optimal conflict” perspective.11 According to this view, organizations are most effective when employees experience some level of conflict but become less effective with high levels of conflict.12 What are the benefits of conflict? As Dewey stated, conflict energizes people to debate issues and evaluate alternatives more thoroughly. They probe and test each other’s way of thinking to better understand the underlying issues that need to be addressed. This discussion and debate tests the logic of arguments and encourages participants to reexamine their basic assumptions about the problem and its possible solution. It prevents individuals and teams from making inferior decisions and potentially helps them develop more sound and creative solutions.13
A second potential benefit is that moderate levels of conflict prevent organizations from becoming nonresponsive to their external environment. As mentioned, differences of opinion encourage employees to engage in active thinking, and this often involves ongoing questioning and vigilance about how the organization can be more closely aligned with its customers, suppliers, and other stakeholders.14 A third benefit of conflict occurs when team members have a dispute or competition with external sources. This form of conflict represents an ex- ternal challenge, which, as we noted in the team dynamics chapter (Chapter 8), potentially increases cohesion within the team. People are more motivated to work together when faced with an external threat, such as conflict with people outside the team.
THE EMERGING VIEW: TASK AND RELATIONSHIP CONFLICT Although many writers still refer to the “optimal conflict” perspective, an emerging school of thought is that there are two types of conflict with opposing consequences: task conflict and relationship conflict.15 Task conflict (also called constructive conflict) occurs when peo- ple focus their discussion around the issue (i.e., the “task”) while showing respect for people
task conflict
A type of conflict in which people focus their discussion around the issue while showing respect for people who have other points of view.
Uses otherwise productive time
Less information sharing
Higher stress, dissatisfaction, and turnover
Increases organizational politics
Wastes resources
Weakens team cohesion (conflict among team members)
Better decision making • tests logic of arguments • questions assumptions
More responsive to changing environment
Stronger team cohesion (conflict between the team and outside opponents)
NEGATIVE CONSEQUENCES POSITIVE CONSEQUENCESEXHIBIT 11.1
Consequences of Workplace Conflict
LO 11-2
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314 Part Three Team Processes
with other points of view. This type of conflict features debates about the merits and limita- tions of different positions so ideas and recommendations can be clarified, redesigned, and tested for logical soundness. By keeping the debate focused on the issue, participants calmly reexamine their assumptions and beliefs without having hostile emotions triggered by their drive to defend their self-concept. Research indicates that task conflict tends to produce the beneficial outcomes that we described earlier, particularly better decision making.16 At the same time, there is likely an upper limit to the intensity of any disagreement, beyond which it would be difficult to remain constructive.
In contrast with task conflict, relationship conflict focuses on interpersonal differences between or among adversaries. The parties refer to “personality clashes” and other interper- sonal incompatibilities rather than legitimate differences of opinion regarding tasks or decisions. Relationship conflict involves one party questioning or critiquing personal char- acteristics of the other person. As such, it attempts (or is perceived to attempt) to undermine another person’s competence. These personal attacks threaten self-esteem and oppose self-enhancement and self-verification processes (see Chapter 3). Consequently, they usually trigger defense mechanisms and a competitive orientation between the parties. Relationship conflict also reduces mutual trust because it emphasizes interpersonal differences that shred any existing bond with the other person.17 Relationship conflict escalates more easily than
High Cost of On-Board Conflicts Airline customers suffer enough when experiencing or ob- serving on-board conflicts with other passengers. But these are usually minor inconveniences compared with situations when flight crew members can’t get along. Consider the fol- lowing recent events. An American Airlines flight recently returned to the gate almost as soon as it began to taxi toward the takeoff area because, in the airline’s words, “there was a disagreement between two flight attendants.” One flight attendant was using her cell phone during the pre-departure preparations for the New York-to-Washington commuter flight. Her activities ap- parently prompted the other flight attendant to use the inter- com and announce that everyone needed to turn off their phones and electronic devices, “including the other flight at- tendant.” That comment led to a scuffle between the two crew members, which was serious enough that the pilots decided to cancel the flight. Passengers had to wait four hours for a new crew to arrive. Exactly one week later, a United Airlines flight bound for Chicago returned to Raleigh/Durham shortly after takeoff be- cause of conflict between two flight attendants. The cause of the tiff seemed almost trivial. “One flight attendant had crossed their leg and accidentally brushed the other person,” explained a spokesperson at Raleigh/Durham International Airport after the flight had returned. Although apparently unintentional, the other flight attendant interpreted the incident as provocation, because relations between the two were already fragile. “It appears there was a disagreement before that, that became elevated,” the spokesperson said. Passengers had to wait three hours for an alternative flight. United Airlines faced the costs of an abandoned flight, compensation for travelers with missed
connections, possible overtime for the replacement crew, and loss of customer service reputation. Pilots probably also have disagreements, but few are no- ticed and fewer still lead to flight delays. But cockpit conflict may have indirectly contributed to the cancellation of a recent Qantas flight from Dallas to Sydney, Australia. The flight opera- tions managers decided to cancel the flight because thunder- storms delayed the departure and the pilots were already close to exceeding their maximum work hours. However, the captain and second officer were later suspended when the managers learned the pilots had an argument while preparing for departure regarding takeoff calculations to enter into the computer system. The airline had to fly in replacement pilots, resulting in an 18-hour delay.8
global connections 11.1
Conflict among airline crew members can be costly for airlines and ruin their customer service reputation.
relationship conflict
A type of conflict in which people focus on characteristics of other individuals, rather than on the issues, as the source of conflict.
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Chapter Eleven Conflict and Negotiation in the Workplace 315
task conflict because the adversaries become less motivated to communicate and share infor- mation, making it more difficult for them to discover common ground and ultimately re- solve the conflict. Instead, they rely more on distorted perceptions and stereotypes that, as we noted earlier, tend to further escalate the conflict.
Separating Task from Relationship Conflict If there are two types of conflict, then the obvious advice is to encourage task conflict and minimize relationship conflict. This recommendation sounds good in theory, but separating these two types of conflict isn’t easy. Research indicates that we experience some degree of relationship conflict whenever we are engaged in constructive debate.18 No matter how diplomatically someone questions our ideas and actions, they potentially trigger our drive to defend our ideas, our sense of compe- tence, and our public image. The stronger the level of debate and the more the issue is tied to our self-concept, the higher the chance that the task conflict will evolve into (or mix with) relationship conflict.
Fortunately, three strategies or conditions potentially minimize the level of relationship conflict during task conflict episodes.20
• Emotional Intelligence and Emotional Stability. Relationship conflict is less likely to occur, or is less likely to escalate, when team members have high levels of emotional intelligence and its associated personality characteristic: emotional stability.21 Em- ployees with higher emotional intelligence and stability are better able to regulate their emotions during debate, which reduces the risk of escalating perceptions of interpersonal hostility. They are also more likely to view a coworker’s emotional reaction as valuable information about that person’s needs and expectations, rather than as a personal attack.
• Cohesive Team. Relationship conflict is suppressed when the con- flict occurs within a highly cohesive team. The longer people work together, get to know each other, and develop mutual trust, the more latitude they give to each other to show emotions without being personally offended. This might explain why task conflict is more effective in top management teams than in teams of more junior staff.22 Strong cohesion also allows each person to know about and anticipate the behaviors and emotions of their team- mates. Another benefit is that cohesion produces a stronger social identity with the group, so team members are motivated to avoid escalating relationship conflict during otherwise emotionally tur- bulent discussions.
Visit connect.mcgrawhill.com for activities and test questions to help you learn about workplace conflict.
Intel is famous for encouraging lively debates among its employees. Intel cofounder Andy Grove introduced and embedded this culture of constructive confrontation long ago to help the computer chip designer make better decisions. But he also recognized the fine line between task and relationship conflict. “Constructive confrontation does not mean being loud, unpleasant or rude, and it is not designed to affix blame,” warns Grove. “The essence of it is to attack a problem by speaking up in a businesslike way.”19
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316 Part Three Team Processes
• Supportive Team Norms. Various team norms can hold relationship conflict at bay during task-focused debate. When team norms encourage openness, for instance, team members learn to appreciate honest dialogue without personally reacting to any emotional display during the disagreements.23 Other norms might discourage team members from displaying negative emotions toward coworkers. Team norms also en- courage tactics that diffuse relationship conflict when it first appears. For instance, research has found that teams with low relationship conflict use humor to maintain positive group emotions, which offsets negative feelings team members might de- velop toward some coworkers during debate.
Conflict Process Model Now that we have outlined the history and current knowledge about conflict and its out- comes, let’s look at the model of the conflict process, shown in Exhibit 11.2.24 This model begins with the sources of conflict, which we will describe in the next section. At some point, the sources of conflict lead one or both parties to perceive that conflict exists. They become aware that one party’s statements and actions are incompatible with their own goals or beliefs. These perceptions usually interact with emotions experienced about the con- flict.25 Conflict perceptions and emotions produce manifest conflict—the decisions and behaviors of one party toward the other. These conflict episodes may range from subtle non- verbal behaviors to warlike aggression. Particularly when people experience high levels of conflict-generated emotions, they have difficulty finding the words and expressions that communicate effectively without further irritating the relationship.26 Conflict is also mani- fested by the style each side uses to resolve the conflict. Some people tend to avoid the con- flict, whereas others try to defeat those with opposing views.
Exhibit 11.2 shows arrows looping back from manifest conflict to conflict perceptions and emotions. These arrows illustrate that the conflict process is really a series of episodes that potentially cycle into conflict escalation.27 It doesn’t take much to start this conflict cycle— just an inappropriate comment, a misunderstanding, or an action that lacks diplomacy. These behaviors cause the other party to perceive that conflict exists. Even if the first party did not intend to demonstrate conflict, the second party’s response may create that perception.
Positive • Better decisions • Responsive organization • Team cohesion Negative • Stress/morale • Turnover • Politics • Lower performance • Distorted information
Sources of conflict Conflict
escalation
Conflict escalation
• Incompatible goals • Differentiation • Interdependence • Scarce resources • Ambiguous rules • Poor communication
Manifest conflict
• Conflict style • Decisions • Overt behaviors
Conflict outcomes
Conflict perceptions
and emotions
EXHIBIT 11.2 Model of the Conflict Process
LO 11-3
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Chapter Eleven Conflict and Negotiation in the Workplace 317
Structural Sources of Conflict in Organizations The conflict model starts with the sources of conflict, so we need to understand these sources to effectively diagnose conflict episodes and subsequently resolve the conflict or oc- casionally to generate conflict where it is lacking. The six main conditions that cause conflict in organizational settings are incompatible goals, differentiation, interdependence, scarce resources, ambiguous rules, and communication problems.
INCOMPATIBLE GOALS Goal incompatibility occurs when the goals of one person or department seem to interfere with another person’s or department’s goals.28 For example, the production department strives for cost efficiency by scheduling long production runs, whereas the sales team em- phasizes customer service by delivering the client’s product as quickly as possible. If the company runs out of a particular product, the production team would prefer to have clients wait until the next production run. This infuriates sales representatives who would rather change production quickly to satisfy consumer demand.
DIFFERENTIATION Another source of conflict is differentiation—differences among people and work units regarding their training, values, beliefs, and experiences. Differentiation differs from goal incompatibility; two people or departments may agree on a common goal (serving cus- tomers better) but have different beliefs about how to achieve that goal (e.g., standardize employee behavior versus give employees autonomy in customer interactions). Consider the opening story to this chapter. Intergenerational conflicts occur because younger and older employees have different needs, different expectations, and different workplace practices, which sometimes produce conflicting preferences and actions. Recent studies suggest that these intergenerational differences occur because people develop social iden- tities around technological developments and other pivotal social events that are unique to their era.30
Visit connect.mcgrawhill.com for activities and test questions to help you learn about the structural sources of conflict.
GE invested $320 million in a new business, GE Energy Storage, in Schenectady, New York, to manufacture its innovative Durathon batteries for the utilities and telecommunications industries. During the plant start-up, GE’s engineers had heated debates because of their different goals and priorities. The engineers who designed the battery wanted prototypes made quickly for real-world testing, whereas GE’s manufacturing engineers held back initial production to ensure the batteries met the company’s rigorous quality standards. “We went through some fights, some serious fights,” admits GE Energy Storage General Manager, Prescott Logan. “It’s a kind of interesting tension at times. We have to find a balance.”29
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318 Part Three Team Processes
Differentiation also produces the classic tension between employees from two compa- nies brought together through a merger.32 Even when people from both companies want the integrated organization to succeed, they fight over the “right way” to do things because of their unique experiences in the separate companies. This form of conflict emerged when CenturyLink acquired Qwest, creating the third largest telecommunications company in the United States. The two companies were headquartered in different parts of the country. “Their languages were different, their food was different, answers were different. We talked fast and interrupted, and they talked slow and were polite,” recalls a senior Qwest execu- tive. “If we said up, they said down. If we said yes, they said no. If we said go, they said stop.” The result was “unnecessary misunderstandings” as executives tried to integrate the two companies.33
INTERDEPENDENCE Conflict tends to increase with the level of task interdependence. Task interdependence re- fers to the extent to which employees must share materials, information, or expertise to perform their jobs (see Chapter 8). This interdependence includes sharing common re- sources, exchanging work or clients back and forth, and receiving outcomes (such as re- wards) that are partly determined by the performance of others.34 Higher interdependence increases the risk of conflict because there is a greater chance that each side will disrupt or interfere with the other side’s goals.35
Other than complete independence, employees tend to have the lowest risk of conflict when working with others in a pooled interdependence relationship. Pooled interdepen- dence occurs where individuals operate independently except for their reliance on a com- mon resource or authority. The potential for conflict is higher in sequential interdependence work relationships, such as an assembly line. The highest risk of conflict tends to occur in reciprocal interdependence situations. With reciprocal interdependence, employees have
Percentage of employees by country who believe that intergenerational (Baby Boomers, Gen X, and Gen Y) differ- ences have a positive or negative effect on workplace productivity. Percentages do not add up to 100 percent because some respondents reported that generational differences have no effect on productivity. Based on a survey of 100,000 employees in 33 countries.
0% 20% 30%10%–30% –20% –10%–40% Intergenerational differences make the workplace less productive
Intergenerational differences make the workplace more productive
–50% 40% 50% 60% 70%
Germany
India
Malaysia
Canada
New Zealand
GLOBAL
Hungary
United States
Thailand
Do Intergenerational Differences Increase or Decrease Productivity?31
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Chapter Eleven Conflict and Negotiation in the Workplace 319
high mutual dependence on each other and, consequently, a higher probability of interfer- ing with each other’s work and personal goals.
SCARCE RESOURCES Resource scarcity generates conflict because each person or unit requiring the same resource necessarily undermines others who also need that resource to fulfill their goals. Most labor strikes, for instance, occur because there aren’t enough financial and other resources for em- ployees and company owners to each receive the outcomes they seek, such as higher pay (employees) and higher investment returns (stockholders). Budget deliberations within or- ganizations also produce conflict because there aren’t enough funds to satisfy the goals of each work unit. The more resources one group receives, the fewer resources other groups will receive. Fortunately, these interests aren’t perfectly opposing in complex negotiations, but limited resources are typically a major source of friction.
AMBIGUOUS RULES Ambiguous rules—or the complete lack of rules—breed conflict. This occurs because uncer- tainty increases the risk that one party intends to interfere with the other party’s goals. Ambiguity also encourages political tactics, and in some cases, employees enter a free-for-all battle to win decisions in their favor. This explains why conflict is more common during mergers and acquisitions. Employees from both companies have conflicting practices and values, and few rules have developed to minimize the maneuvering for power and re- sources.36 When clear rules exist though, employees know what to expect from each other and have agreed to abide by those rules.
COMMUNICATION PROBLEMS Conflict often occurs due to the lack of opportunity, ability, or motivation to communicate effectively. Let’s look at each of these causes. First, when two parties lack the opportunity to communicate, they tend to rely more on stereotypes to understand the other party in the conflict. Unfortunately, stereotypes are sufficiently subjective that emotions can negatively distort the meaning of an opponent’s actions, thereby escalating perceptions of conflict. Second, some people lack the necessary skills to communicate in a diplomatic, nonconfron- tational manner. When one party communicates its disagreement arrogantly, opponents are more likely to heighten their perception of the conflict. This may lead opponents to recip- rocate with a similar response, which further escalates the conflict.37
Third, relationship conflict is uncomfortable, so people are less motivated to communicate with others in a disagreement. Unfortunately, less communication can further escalate the con- flict because each side has less accurate information about the other side’s intentions. To fill in the missing pieces, they rely on distorted images and stereotypes of the other party. Perceptions are further distorted because people in conflict situations tend to engage in more differentiation with those who are different from them (see Chapter 3). This differentiation creates a more positive self-concept and a more negative image of the opponent. We begin to see competitors less favorably so our self-concept remains positive during these conflict episodes.38
Interpersonal Conflict Handling Styles The six structural conditions described in the previous section lead to conflict perceptions and emotions which, in turn, motivate people to take some sort of action to address the con- flict. Along with her pioneering view that some conflict is beneficial, Mary Parker Follett observed that people use different conflict handling styles. Conflict management experts sub- sequently expanded and refined this taxonomy of conflict handling styles, with most of them adapting variations of the five-category model shown in Exhibit 11.3 and described next.
LO 11-4
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320 Part Three Team Processes
This model recognizes that how people approach a conflict situation depends on the relative importance they place on maximizing outcomes for themselves and maximizing outcomes for the other party.39
• Problem solving. Problem solving tries to find a solution that is beneficial for both parties. This is known as the win–win orientation, because people using this style believe the resources at stake are expandable rather than fixed if the parties work to- gether to find a creative solution. Information sharing is an important feature of this style, because both parties collaborate to identify common ground and potential solutions that satisfy everyone involved.
• Forcing. Forcing tries to win the conflict at the oth- er’s expense. People who use this style typically have a win–lose orientation; they believe the parties are drawing from a fixed pie, so the more one party receives, the less the other party will receive. Conse- quently, this style relies on some of the “hard” influ- ence tactics described in Chapter 10, particularly assertiveness, to get one’s own way.
What is your preferred conflict-handling style? Visit connect. mcgrawhill.com to assess your preferred way of handling conflict, and to assist your learning about this topic.
Source: C. K. W. de Dreu, A. Evers, B. Beersma, E. S. Kluwer, and A. Nauta, “A Theory-Based Measure of Conflict Management Strategies in the Workplace,” Journal of Organizational Behavior, 22 (2001), pp. 645–68. For other varia- tions of this model, see T. L. Ruble and K. Thomas, “Support for a Two-Dimensional Model of Conflict Behavior,” Organizational Behavior and Human Performance, 16 (1976), p. 145; R. R. Blake, H. A. Shepard, and J. S. Mouton. Managing Intergroup Conflict in Industry. Houston: Gulf Publishing, 1964; M. A. Rahim, “Toward a Theory of Managing Organizational Conflict,” International Journal of Conflict Management 13, no. 3 (2002), pp. 206–35.
Forcing Problem solving
Avoiding
Compromising
Yielding
High
High Low
Assertiveness (motivation to satisfy one’s own interests)
Low Cooperativeness (motivation to satisfy
other party’s interests)
EXHIBIT 11.3
Interpersonal Conflict Handling Styles
win–win orientation
The belief that conflicting parties will find a mutually beneficial solution to their disagreement.
win–lose orientation
The belief that conflicting parties are drawing from a fixed pie, so the more one party receives, the less the other party will receive.
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Chapter Eleven Conflict and Negotiation in the Workplace 321
• Avoiding. Avoiding tries to smooth over or evade conflict situations altogether. A common avoidance strategy is to minimize interaction with certain coworkers. For instance, 67 percent of employees in one large global survey said they go out of their way to avoid seeing coworkers with whom they have had a disagreement. A smaller number (14 percent) have missed a day of work to avoid workplace conflict.40 A second avoidance strategy is to steer clear of the sensitive topic when interacting with the other person in the conflict. These examples indicate that avoidance does not necessarily mean a low concern for both one’s own and the other party’s interest. Instead, we might be very concerned about the issue but believe that avoidance is the best solution, at least for the short term.41
• Yielding. Yielding involves giving in completely to the other side’s wishes, or at least cooperating with little or no attention to your own interests. This style involves mak- ing unilateral concessions and unconditional promises, as well as offering help with no expectation of reciprocal help.
• Compromising. Compromising involves looking for a position in which your losses are offset by equally valued gains. It involves matching the other party’s concessions, making conditional promises or threats, and actively searching for a middle ground between the interests of the two parties.
CHOOSING THE BEST CONFLICT HANDLING STYLE Chances are that you have a preferred conflict handling style. You might typically engage in avoiding or yielding, because disagreement makes you feel uncomfortable and is contrary to your self-view as someone who likes to get along with everyone. Or perhaps you prefer the compromising and forcing strategies because they reflect your strong need for achievement and to control your environment. People usually gravitate toward one or two conflict han- dling styles that match their personality, personal and cultural values, and past experience.43 However, the best style depends on the situation, so we need to understand and develop the capacity to use each style for the appropriate occasions.44
Exhibit 11.4 summarizes the main contingencies, as well as problems, associated with us- ing each conflict handling style. Problem solving is widely recognized as the preferred conflict handling style, whenever possible. Why? This approach calls for dialogue and clever thinking,
“We are really, really, really nice,” emphasizes Xerox CEO Ursula Burns (left in this photo) about social relationships in the technology company. But she also believes this “terminal niceness” encourages too much of an avoidance conflict handling style. For example, Burns notes that employees don’t raise objections in meetings, even when others present ideas that aren’t workable. “When we’re in the family, you don’t have to be as nice as when you’re outside of the family,” says Burns. “I want us to stay civil and kind, but we have to be frank—and the reason we can be frank is because we are all in the same family.”42
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322 Part Three Team Processes
both of which help the parties discover a win–win solution. In addition, the problem-solving style tends to improve long-term relationships, reduce stress, and minimize emotional defen- siveness and other indications of relationship conflict.45
However, problem solving assumes there are opportunities for mutual gains, such as when the conflict is complex with multiple elements. If the conflict is simple and perfectly opposing (each party wants more of a single fixed pie), then this style will waste time and increase frustration. The problem-solving approach also takes more time and requires a fairly high degree of trust, because there is a risk that the other party will take advantage of the information you have openly shared. As one study recently found, the problem-solving style is more stressful when people experience strong feelings of conflict, likely because these negative emotions undermine trust in the other party.46
The conflict avoidance style is often ineffective because it doesn’t resolve the conflict and may increase the other party’s frustration. However, avoiding may be the best strategy when conflict has become emotionally charged or where conflict resolution would cost more than the benefits it provides.47 The forcing style is usually inappropriate because it commonly generates relationship conflict more quickly or intensely than other conflict handling styles. However, forcing may be necessary if you know you are correct (e.g., the other party’s posi- tion is unethical or based on obviously flawed logic), the dispute requires a quick solution, or the other party would take advantage of a more cooperative conflict handling style.
The yielding style may be appropriate when the other party has substantially more power, the issue is not as important to you as to the other party, and you aren’t confident that your position has superior logical or ethical justification.48 However, yielding behaviors may give the other side unrealistically high expectations, thereby motivating them to seek more from you in the future. In the long run, yielding may produce more conflict, rather than resolve it. “Raised voices, red faces and table thumping is a far less dysfunctional way of challenging each other than withdrawal, passivity and sullen acceptance,” argues one conflict management consultant. “It doesn’t mean that people agree with you: they just take their misgivings underground and spread them throughout the organization, which has a corrosive effect.”49
The compromising style may be best when there is little hope for mutual gain through problem solving, both parties have equal power, and both are under time pressure to settle their
CONFLICT HANDLING STYLE PREFERRED STYLE WHEN… PROBLEMS WITH THIS STYLE
EXHIBIT 11.4 Conflict Handling Style Contingencies and Problems
Problem solving
Forcing
Avoiding
Yielding
Compromising
• Sharing information that the other party might use to their advantage
• Highest risk of relationship conflict • May damage long-term relations,
reducing future problem solving
• Doesn’t usually resolve the conflict • May increase other party’s frustration
• Increases other party’s expectations in future conflict episodes
• Suboptimal solution where mutual gains are possible
• Interests are not perfectly opposing (i.e., not pure win–lose) • Parties have trust, openness, and time to share information • The issues are complex
• You have a deep conviction about your position (e.g., believe the other person’s behavior is unethical)
• Dispute requires a quick solution • The other party would take advantage of more cooperative
strategies
• Conflict has become too emotionally charged • Cost of trying to resolve the conflict outweighs the benefits
• Other party has substantially more power • Issue is much less important to you than to the other party • The value and logic of your position isn’t as clear
• Parties have equal power • Time pressure to resolve the conflict • Parties lack trust/openness for problem solving
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Chapter Eleven Conflict and Negotiation in the Workplace 323
differences. However, we rarely know whether the parties have perfectly opposing interests, yet the compromise approach assumes this win–lose orientation. Therefore, entering a conflict with the compromising style may cause the parties to overlook better solutions, because they have not attempted to share enough information or creatively look for win–win alternatives.
CULTURAL AND GENDER DIFFERENCES IN CONFLICT HANDLING STYLES Cultural differences are more than just a source of conflict. They also influence the preferred conflict handling style.50 Some research suggests that people from high collectivism cultures— where group goals are valued more than individual goals—are motivated to maintain harmo- nious relations and, consequently, are more likely than those from low collectivism cultures to manage disagreements through avoidance or problem solving. However, this view may be somewhat simplistic. Collectivism motivates harmony within the group but not necessarily with people outside the group. Indeed, research indicates that managers in some collectivist cultures are more likely to publicly shame those whose actions oppose their own.51 Cultural values and norms influence the conflict handling style used most often in a society, but they also represent an important contingency when outsiders choose their preferred conflict han- dling approach. For example, people who frequently use the conflict avoidance style might have more problems in cultures in which the forcing style is common.
According to some writers, men and women tend to rely on different conflict handling styles.52 They suggest that, compared with men, women pay more attention to the relation- ship between the parties. Consequently, women tend to adopt a compromising or occasion- ally problem-solving style in business settings and are more willing to compromise to protect the relationship. Compared with men, they are also slightly more likely to use the avoiding style. Men tend to be more competitive and take a short-term orientation to the relationship. In low collectivism cultures, men are more likely than women to use the forcing approach to conflict handling. We must be cautious about these observations, however, because differ- ences between men and women on preferred conflict handling styles are fairly small.
Structural Approaches to Conflict Management Conflict handling styles describe how we approach the other party in a conflict situation. But conflict management also involves altering the underlying structural causes of potential conflict. The main structural approaches are emphasizing superordinate goals, reducing dif- ferentiation, improving communication and understanding, reducing task interdependence, increasing resources, and clarifying rules and procedures.
Visit connect.mcgrawhill.com for activities and test questions to help you learn about structural approaches to managing conflict.
EMPHASIZING SUPERORDINATE GOALS One of the oldest recommendations for resolving conflict is to refocus the parties’ attention around superordinate goals and away from the conflicting subordinate goals.53 Superordinate goals are goals that the conflicting employees or departments value and whose attainment requires the joint resources and effort of those parties.54 These goals are called superordinate because they are higher-order aspirations, such as the organization’s strategic objectives rather
superordinate goals
Goals that the conflicting parties value and whose attainment requires the joint resources and effort of those parties.
LO 11-5
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Boeing and the International Association of Machinists and Aerospace Workers (IAMAW) are working to reduce union– management conflict by focusing everyone on superordinate goals. Employees are encouraged to attend 30-minute “business basics” classes that teach financial metrics and describe Boeing’s external customers, competitors, and emerging business risks. The sessions give employees business skills and help them see that they and management have common objectives. “I think we as a union now understand that there is competition out there, and we need to understand that competition, and see what we can do to help the company be competitive,” says IAMAW District 751 President Tom Wroblewski. “It’s a whole new mind shift for all of us.”57
than objectives specific to the individual or work unit. Research indicates that the most effective executive teams frame their decisions as superordinate goals that rise above each ex- ecutive’s departmental or divisional goals. Similarly, one recent study reported that leaders reduce conflict through an inspirational vision that unifies employees and makes them less preoccupied with their subordinate goal differences.55
Suppose that marketing staff want a new product released quickly, whereas engineers want more time to test and add new features. Leaders can potentially reduce this interde- partmental conflict by reminding both groups of the company’s mission to serve customers, or by pointing out that competitors currently threaten the company’s leadership in the industry. By increasing commitment to corporate-wide goals (customer focus, competi- tiveness), engineering and marketing employees pay less attention to their competing departmental-level goals, which reduces their perceived conflict with each other. Super- ordinate goals also potentially reduce the problem of differentiation, because they establish feelings of a shared social identity (work for the same company).56
REDUCING DIFFERENTIATION Another way to minimize dysfunctional conflict is to reduce the differences that generate conflict. As people develop common experiences and beliefs, they become more motivated to coordinate activities and resolve their disputes through constructive discussion.58 SAP, the German enterprise software company, applied this approach when it recently acquired Busi- ness Objects, a French company with a strong U.S. presence. Immediately after the merger, SAP began intermingling people from the two organizations. Several senior SAP executives transferred to Business Objects, and all of the acquired company’s executives are on SAP’s shared services team. “We also encourage cross-border, cross-functional teamwork on proj- ects such as major product releases,” says Business Objects CEO John Schwarz. “In this way team members come to depend on each other.”59 Essentially, SAP provided opportunities for managers and technical employees in the acquired firm to develop common experiences with their SAP counterparts by moving staff across the two companies or having them work together on joint projects.
IMPROVING COMMUNICATION AND MUTUAL UNDERSTANDING A third way to resolve dysfunctional conflict is to give the conflicting parties more opportu- nities to communicate and understand each other. This recommendation applies two prin- ciples and practices introduced in Chapter 3: the Johari Window model and meaningful interaction. Although both were previously described as ways to improve self-awareness, they are equally valuable to improve other-awareness.
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Chapter Eleven Conflict and Negotiation in the Workplace 325
In the Johari Window process, individuals disclose more about themselves so others have a better understanding of the underlying causes of their behavior. L’Oreal Canada’s intergenera- tional seminar, described in the opening case study for this chapter, applied a variation of the Johari Window. The cosmetics company’s program includes an activity in which each genera- tional cohort answers questions from the other cohorts about what is important to them (such as security, performance, and collaboration). A variation of Johari Window also occurs in “lunch and learn” sessions, where employees in one functional area describe their work and its chal- lenges to coworkers in other areas. Houston-based Brookstone Construction introduced these information meetings, which helped reduce the tensions between its field and office staff.60
Meaningful interaction potentially improves mutual understanding through the contact hypothesis, which says that we develop a more person-specific and accurate understanding of others by working closely with them.61 For example, more than 18,000 employees and managers at the various companies of System Capital Management recently participated in the “Let’s Make Ukraine Clean” campaign. In addition to improving the environment— each person picked up an average of about 100 kilograms (220 pounds) of garbage—this volunteering opportunity improved relations among management and employees at the Ukraine’s leading financial and industrial group.62
Although communication and mutual understanding can work well, there are two im- portant warnings. First, these interventions should be applied only where differentiation is sufficiently low or after differentiation has been reduced. If perceived differentiation remains high, attempts to manage conflict through dialogue might escalate rather than reduce rela- tionship conflict. When forced to interact with people who we believe are quite different and in conflict with us, we tend to select information that reinforces that view.63 The second warning is that people in collectivist and high power distance cultures are less comfortable with the practice of resolving differences through direct and open communication.64 As noted earlier, people in Confucian cultures prefer an avoidance conflict management style, because it is the most consistent with harmony and face saving. Direct communication is a high-risk strategy that easily threatens the need to save face and maintain harmony.
REDUCING INTERDEPENDENCE Conflict occurs where people are dependent on one another, so another way to reduce dys- functional conflict is to minimize the level of interdependence between parties. Three ways to reduce interdependence among employees and work units are to create buffers, use inte- grators, and combine jobs.
• Create Buffers. A buffer is any mechanism that loosens the coupling between two or more people or work units. This decoupling reduces the potential for conflict be- cause the buffer reduces the effect of one party on the other. Building up inventories between people in an assembly line would be a buffer, for example, because each employee is less dependent in the short term on the previous person along that line.
• Use Integrators. Integrators are employees who coordinate the activities of work units toward the completion of a common task. For example, an individual might be re- sponsible for coordinating the efforts of the research, production, advertising, and marketing departments in launching a new product line. In some respects, integra- tors are human buffers; they reduce the frequency of direct interaction among work units that have diverse goals and perspectives. Integrators rarely have direct authority over the departments they integrate, so they must rely on referent power and persua- sion to manage conflict and accomplish the work.
• Combine Jobs. Combining jobs is both a form of job enrichment and a way to reduce task interdependence. Consider a toaster assembly system, where one person inserts the heating element, another adds the sides, and so on. By combining these tasks so that each person assembles an entire toaster, the employees now have a pooled rather than sequential form of task interdependence, and the likelihood of dysfunctional conflict is reduced.
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326 Part Three Team Processes
INCREASING RESOURCES An obvious way to reduce conflict caused by resource scarcity is to increase the amount of resources available. Corporate decision makers might quickly dismiss this solution because of the costs involved. However, they need to carefully compare these costs with the costs of dysfunctional conflict arising out of resource scarcity.
CLARIFYING RULES AND PROCEDURES Conflicts that arise from ambiguous rights can be minimized by establishing rules and proce- dures. If two departments are fighting over the use of a new laboratory, a schedule might be established that allocates the lab exclusively to each team at certain times of the day or week.
Third-Party Conflict Resolution Most of this chapter has focused on people directly involved in a conflict, yet many disputes among employees and departments are resolved with the assistance of a manager. Third- party conflict resolution is any attempt by a relatively neutral person to help the parties resolve their differences. There are three main third-party dispute resolution activities: arbi- tration, inquisition, and mediation. These interventions can be classified by their level of control over the process and control over the decision (see Exhibit 11.5).65
• Arbitration—Arbitrators have high control over the final decision but low control over the process. Executives engage in this strategy by following previously agreed rules of due process, listening to arguments from the disputing employees, and making a binding decision. Arbitration is applied as the final stage of grievances by unionized employees in many countries, but it is also becoming more common in nonunion conflicts.
• Inquisition—Inquisitors control all discussion about the conflict. Like arbitrators, they have high decision control, because they determine how to resolve the conflict. However, they also have high process control, because they choose which informa- tion to examine and how to examine it, and they generally decide how the conflict resolution process will be handled.
• Mediation—Mediators have high control over the intervention process. In fact, their main purpose is to manage the process and context of interaction between the disputing parties. However, the parties make the final decision about how to resolve their differ- ences. Thus, mediators have little or no control over the conflict resolution decision.66
Level of process control
Low Low
Level of decision control High
High
Mediation
Arbitration
Inquisition
EXHIBIT 11.5
Types of Third-Party Intervention
third-party conflict resolution
Any attempt by a relatively neutral person to help conflicting parties resolve their differences.
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CHOOSING THE BEST THIRD-PARTY INTERVENTION STRATEGY Team leaders, executives, and coworkers regularly intervene in workplace disputes. Some- times they adopt a mediator role; other times they serve as arbitrators. Occasionally, they begin with one approach, and then switch to another. However, research suggests that peo- ple in positions of authority (e.g., managers) usually adopt an inquisitional approach, whereby they dominate the intervention process as well as make a binding decision.68
Managers tend to rely on the inquisition approach because it is consistent with the decision-oriented nature of managerial jobs, gives them control over the conflict process and outcome, and it tends to resolve disputes efficiently. However, inquisition is usually the least effective third-party conflict resolution method in organizational settings.69 One problem is that leaders who take an inquisitional role tend to collect limited information about the problem, so their imposed decision may produce an ineffective solution to the conflict. An- other problem is that employees often view inquisitional procedures and outcomes as unfair, because they have little control over this approach. In particular, the inquisitional approach potentially violates several practices required to support procedural justice (see Chapter 5).
Which third-party intervention is most appropriate in organizations? The answer partly depends on the situation, such as the type of dispute, the relationship between the manager and employees, and cultural values such as power distance.70 Also, any third-party approach has more favorable results when it applies the procedural justice practices described in Chapter 5.71 But generally speaking, for everyday disagreements between two employees, the mediation approach is usually best, because it gives employees more responsibility for resolving their own disputes. The third-party representative merely establishes an appropri- ate context for conflict resolution. Although not as efficient as other strategies, mediation potentially offers the highest level of employee satisfaction with the conflict process and outcomes.72 When employees cannot resolve their differences through mediation, arbitration seems to work best, because the predetermined rules of evidence and other processes create a higher sense of procedural fairness.73 Arbitration is also preferred where the organization’s goals should take priority over individual goals.
Resolving Conflict through Negotiation Think back through yesterday’s events. Maybe you had to work out an agreement with other students about what tasks to complete for a team project. Chances are that you shared trans- portation with someone, so you had to agree on the timing of the ride. Then perhaps there was the question of who made dinner. Each of these daily events created potential conflict, and they were resolved through negotiation. Negotiation occurs whenever two or more con- flicting parties attempt to resolve their divergent goals by redefining the terms of their inter- dependence. In other words, people negotiate when they think that discussion can produce a more satisfactory arrangement (at least for them) in their exchange of goods or services.
The United States Postal Service has an innovative process to resolve workplace disputes through mediation. Called REDRESS®—Resolve Employment Disputes, Reach Equitable Solutions Swiftly—the program gives both parties more power and involvement in the process with the aid of external professional mediators. The employee may bring a representative or engage in the process alone. The USPS employment mediation program is now the world’s largest and has received favorable recognition from conflict resolution experts.67
LO 11-6
negotiation
The process whereby two or more conflicting parties attempt to resolve their divergent goals by redefining the terms of their interdependence.
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328 Part Three Team Processes
As you can see, negotiation is not an obscure practice reserved for labor and management bosses when hammering out a collective agreement. Everyone negotiates, every day. Most of the time, you don’t even realize that you are in negotiations. Negotiation is particularly evi- dent in the workplace because employees work interdependently. They negotiate with their supervisors over next month’s work assignments, with customers over the sale and delivery schedules of their product, and with coworkers over when to have lunch. And yes, they occa- sionally negotiate with each other in labor disputes and collective agreements.
BARGAINING ZONE MODEL OF NEGOTIATIONS One way to view the negotiation process is that each party moves along a continuum in opposite directions with an area of potential overlap called the bargaining zone.74 Exhibit 11.6 displays one possible bargaining zone situation. This linear diagram illustrates a purely win–lose situation—one side’s gain will be the other’s loss. However, the bargaining zone model can also be applied to situations in which both sides potentially gain from the nego- tiations. As this model illustrates, the parties typically establish three main negotiating points. The initial offer point is the team’s opening offer to the other party. This may be its best expectation or a pie-in-the-sky starting point. The target point is the team’s realistic goal or expectation for a final agreement. The resistance point is the point beyond which the team will make no further concessions.
The parties begin negotiations by describing their initial offer point for each item on the agenda. In most cases, the participants know that this is only a starting point that will change as both sides offer concessions. In win–lose situations, neither the target nor the re- sistance point is revealed to the other party. However, people try to discover the other side’s resistance point, because this knowledge helps them determine how much they can gain without breaking off negotiations.
The bargaining zone model implies that the parties compete to reach their target point. Competition exists to varying degrees because negotiators try to claim value, that is, to get the best possible outcomes for themselves. Yet the hallmark of successful negotiations is a combination of competition and cooperation. Negotiators also need to cooperate with each other to create value, that is, to discover ways to achieve mutually satisfactory outcomes for
Your initial point
Your target point
Your resistance
point
Opponent’s resistance
point
Area of potential
agreement
Opponent’s target point
Opponent’s initial offer point
EXHIBIT 11.6 Bargaining Zone Model of Negotiations
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Chapter Eleven Conflict and Negotiation in the Workplace 329
both parties.75 Cooperation maintains a degree of trust necessary to share information. To some degree, it may also improve concessions so the negotiations are resolved more quickly and with greater mutual gains.
STRATEGIES FOR CLAIMING VALUE Claiming value involves trying to obtain the best possible outcomes for yourself and your constituents. A purely competitive approach, in which you forcefully influence the other party and assert your power (such as threatening to walk away from the negotiation), typi- cally leads to failure, because it generates negative emotions and undermines trust. Even so, some degree of value claiming is necessary to achieve a favorable outcome. Here are four skills to effectively claim value in negotiations.
Prepare and Set Goals People negotiate more successfully when they carefully think through their three key positions in the bargaining zone model (initial, target, and resistance), consider alternative strategies to achieve those objectives, and test their underlying assump- tions about the situation.78 Equally important, they need to research what the other party wants from the negotiation. “You have to be prepared every which way about the people, the subject, and your fallback position,” advises Paul Tellier, Chairman of Global Container Terminals and the former president of CN Railway and Bombardier, Inc. “Before walking into the room for the actual negotiation, I ask my colleagues to throw some curveballs at me.”79
debating point IS CREATING VALUE SUCH A GOOD NEGOTIATION STRATEGY?
One of the bedrock principles of conflict management and negoti- ation is that the parties need to adopt a problem-solving ap- proach. In negotiation, this win–win perspective is called creating value: discovering ways to achieve mutually satisfactory out- comes for both parties. Creating value is important for several reasons. First, creating value produces more trust. Some experts suggest that trust is vital in negotiations, because it enables each side to move forward with concessions and points of agreement. Second, creating value involves sharing information, including a better understanding of each other’s needs, so the parties can reach an optimal solution. This solution needs to determine the relative value that each side assigns to aspects of the issues or items negotiated. By identifying which items are more important to one party than the other, the resources can be divided up in a way that gains the most value for both sides. Experts agree with these and other benefits of creating value, but some also warn that this scholarly picture isn’t always as rosy in real life. The most potent problem with creating value is that it requires the parties to share information. This sharing is fine if you know the other party will reveal any mutual gains and discov- eries from the information-sharing process, but this revelation doesn’t always occur. Instead, Side B might discover something of value that could give it more of what it wants while making Side A think it has gained, at great loss to Side B.
Consider the following true example:76 Back in the days of the Model-T, the supplier of the car’s door handles asked Ford for a 5 percent increase. Ford initially balked, but then agreed to the higher price if the supplier would reconfigure the bolt holes in the lids of the wooden crates used to deliver the door handles. The supplier was both perplexed and delighted; it didn’t cost anything to make the change, but what was the value to Ford? Back then, Model-T floorboards were made of wood, and Ford staff figured out how to modify the supplier’s crate lids as floorboards. In this incident, Ford might have told the curious supplier why it was willing to pay this higher price, but this doesn’t always oc- cur. Sometimes, one side falsely believes the other side is making a significant sacrifice when, in fact, that other side has received considerable gains.77 If these gains had been revealed, the first party might have asked for even more! Another concern is that it is sometimes difficult for each party to distinguish creating value from yielding—that is, giving the other party what they want. In an attempt to show collaboration, you give one concession here, another there, and so forth. Even- tually, your position lacks negotiation options, because most of the concession space has been given away, while the other party has given very little. Creating value is an inherent tension with gaining value, because you must always keep your own interests equal to or greater than the interests of the other party.
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330 Part Three Team Processes
Know Your BATNA To determine whether the opponent’s offers are favorable, negoti- ators need to understand what outcome they might achieve through some other means (such as negotiating with someone else). This comparison is called the best alternative to a negotiated agreement (BATNA). BATNA estimates your power in the negotiation, because it represents the estimated cost of walking away from the relationship. If others are willing to negotiate with you for the product or service you need, then you have a high BATNA and considerable power in the negotiation; it would not cost you much to walk away from the current negotiation. A common problem in negotiations, however, is that people tend to overestimate their BATNA; they wrongly believe there are plenty of other ways to achieve their objective rather than through this negotiation.
Manage Time Negotiators make more concessions as the deadline gets closer.80 This can be a liability if you are under time pressure, or it can be an advantage if the other party alone is under time pressure. Negotiators with more power in the relationship sometimes apply time pressure through an “exploding offer,” whereby they give their opponent a very short time to accept their offer.81 These time-limited offers are frequently found in consumer sales (“on sale today only!”) and in some job offers. They produce time pressure, which can motivate the other party to accept the offer and forfeit the opportunity to ex- plore their BATNA. Another time factor is that the more time someone has invested in the negotiation, the more committed they become to ensuring an agreement is reached. This commitment increases the tendency to make unwarranted concessions so that the negotia- tions do not fail.
Manage First Offers and Concessions Negotiators who make the first offer have the advantage of creating a position around which subsequent negotiations are anchored. As we explained in Chapter 7, people tend to adjust their expectations around the initial point, so if your initial request is high, opponents might move more quickly toward their resistance point along the bargaining zone.82 It may even cause opponents to lower their resistance point.
After the first offer, negotiators need to make concessions.83 Concessions serve at least three important purposes: (1) They enable the parties to move toward the area of potential agreement, (2) they symbolize each party’s motivation to bargain in good faith, and (3) they tell the other party of the relative importance of the negotiating items. However, concessions need to be clearly labeled as such and should be accompanied by an expectation that the other party will reciprocate. They should also be offered in installments, because people experience more positive emotions from a few smaller concessions than from one large concession.84 Generally, the best strategy is to be moderately tough and give just enough concessions to communicate sincerity and motivation to resolve the conflict.85
STRATEGIES FOR CREATING VALUE Earlier in this section, we pointed out that negotiations involve more than just claiming value; they also involve creating value, or trying to obtain the best possible outcomes for both parties. In other words, negotiators need to apply a problem-solving approach to con- flict handling. Information exchange is a critical feature of creating value, but it is also a potential pitfall. Information is power in negotiations, so information sharing gives the other party more power to leverage a better deal if the opportunity occurs.86 Skilled negoti- ators address this dilemma by adopting a cautious problem-solving style at the outset. They begin by sharing information slowly and determining whether the other side will recipro- cate. In this way, they try to establish trust with the other party. Here are several ways that skilled negotiators reap the benefits of problem-solving and value creation.
Gather Information Information is the corner stone of effective value creation.87 There- fore, skilled negotiators heed the advice of the late management guru Stephen Covey: “Seek first to understand, then to be understood.”88 This means that we should present our case only after spending more time listening closely to the other party and asking for details. It is particularly
best alternative to a
negotiated settlement
(BATNA)
The best outcome you might achieve through some other course of action if you abandon the current negotiation.
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Chapter Eleven Conflict and Negotiation in the Workplace 331
important to look beyond the opponent’s stated justifications to the unstated motivation for their claims. Probing questions (such as asking “why”) and listening intently can reveal better solutions for both parties. Nonverbal communication can also convey important information about the other party’s priorities. Negotiating in teams can also aid the information gathering process, because some team members will hear information that others have ignored.
Discover Priorities Through Offers and Concessions Some types of offers and concessions are better than others at creating value. The key objective is to discover and signal which issues are more and less important to each side. Suppose that you have been asked to “second” (temporarily transfer) some of your best staff to projects in another divi- sion, whereas you need these people on site for other assignments and to coach junior staff. Through problem-solving negotiation, you discover that the other division doesn’t need those staff at their site; rather the division head mainly needs some guarantee that these people will be available. The result is that your division keeps the staff (important to you), while the other division has some guarantee these people will be available at specific times for their projects (important to them).
One way to figure out the relative importance of the issues to each party is to make multi-issue offers rather than discussing one issue at a time.89 You might offer a client a specific price, delivery date, and guarantee period, for example. The other party’s counter- offer to multiple items signals which are more and which are less important to them. Your subsequent concessions similarly signal how important each issue is to your group.
Build the Relationship Trust is critical for the problem-solving style of conflict han- dling, as well as in the value creation objective of negotiations.90 How do you build trust in negotiations? One approach is to discover common backgrounds and interests, such as places you have lived, favorite hobbies and sports teams, and so forth. If there are substantial differences between the parties (age, gender, etc.), consider having team members who more closely match the backgrounds of the other party. First impressions are also important. Recall from earlier chapters in this book that people attach emotions to incoming stimuli in a fraction of a second. Therefore, you need to be sensitive to your nonverbal cues, appearance, and initial statements.
Signaling that we are trustworthy also helps strengthen the relationship. We can do this by demonstrating that we are reliable and will keep our promises, as well as by identifying shared goals and values. Trustworthiness also increases by developing a shared understanding
of the negotiation process, including its norms and expectations about speed and timing.91 Finally, relationship building demands emotional intelligence.92 This includes managing the emotions you display to the other party, particularly avoiding an image of superior- ity, aggressiveness, or insensitivity. Emotional intelligence also in- volves managing the other party’s emotions. We can use well-placed flattery, humor, and other methods to keep everyone in a good mood and to break unnecessary tension.93
SITUATIONAL INFLUENCES ON NEGOTIATIONS The effectiveness of negotiating depends to some extent on the envi- ronment in which the negotiations occur. Three key situational factors are location, physical setting, and audience.
Location It is easier to negotiate on your own turf because you are familiar with the negotiating environment and are able to maintain comfortable routines.94 Also, there is no need to cope with travel- related stress or depend on others for resources during the negotiation. Of course, you can’t walk out of negotiations as easily when the event is on your own turf, but this is usually a minor issue. Considering
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332 Part Three Team Processes
chapter summary 11-1 Define conflict and debate its positive and negative
consequences in the workplace.
Conflict is the process in which one party perceives that its inter- ests are being opposed or negatively affected by another party. The earliest view of conflict was that it was dysfunctional for organizations. Even today, we recognize that conflict sometimes or to some degree consumes productive time, increases stress and job dissatisfaction, discourages coordination and resource shar- ing, undermines customer service, fuels organizational politics, and undermines team cohesion. But conflict can also be benefi- cial. It is known to motivate more active thinking about prob- lems and possible solutions, encourage more active monitoring of the organization in its environment, and improve team cohe- sion (where the conflict source is external).
11-2 Distinguish task from relationship conflict and describe three strategies to minimize relationship conflict during task conflict episodes.
Task conflict occurs when people focus their discussion around the issue while showing respect for people with other points of view. Relationship conflict exists when people view each other, rather than the issue, as the source of conflict. It is apparent when people attack each other’s credibility and display aggres- sion toward the other party. It is difficult to separate task from relationship conflict. However, three strategies or conditions that minimize relationship conflict during constructive debate
are: (1) emotional intelligence and emotional stability of the par- ticipants, (2) team cohesion, and (3) supportive team norms.
11-3 Diagram the conflict process model and describe six structural sources of conflict in organizations.
The conflict process model begins with the five structural sources of conflict: incompatible goals, differentiation (different values and beliefs), interdependence, scarce resources, ambiguous rules, and communication problems. These sources lead one or more parties to perceive a conflict and to experience conflict emotions. This produces manifest conflict, such as behaviors toward the other side. The conflict process often escalates through a series of episodes.
11-4 Outline the five conflict handling styles and discuss the circumstances in which each would be most appropriate.
There are five known conflict handling styles: problem solving, forcing, avoiding, yielding, and compromising. People who use problem solving have a win–win orientation. Others, particularly forcing, assume a win–lose orientation. In general, people gravitate toward one or two preferred conflict handling styles that match their personality, personal and cultural values, and past experience. The best style depends on the situation. Problem solving is best when interests are not perfectly opposing, the parties trust each other, and the issues are complex. Forcing works best when you strongly believe in your position, the dispute requires quick action,
these strategic benefits of home turf, many negotiators agree to neutral territory. Phone calls, videoconferences, e-mail, and other forms of information technology potentially avoid terri- torial issues, but skilled negotiators usually prefer the media richness of face-to-face meetings. Frank Lowy, cofounder of retail property giant Westfield Group, says that telephones are “too cold” for negotiating. “From a voice, I don’t get all the cues I need. I go by touch and feel and I need to see the other person.”95
Physical Setting The physical distance between the parties and formality of the set- ting can influence their orientation toward each other and the disputed issues. So can the seating arrangements. People who sit face to face are more likely to develop a win–lose ori- entation toward the conflict situation. In contrast, some negotiation groups deliberately in- tersperse participants around the table to convey a win–win orientation. Others arrange the seating so that both parties face a whiteboard, reflecting the notion that both parties face the same problem or issue.
Audience Characteristics Most negotiators have audiences—anyone with a vested interest in the negotiation outcomes, such as executives, other team members, or the general public. Negotiators tend to act differently when their audience observes the negotiation or has detailed information about the process, compared with situations in which the audience sees only the end results.96 When the audience has direct surveillance over the proceedings, negotiators tend to be more competitive, less willing to make concessions, and more likely to engage in assertive tactics against the other party. This “hardline” behavior shows the audience that the negotiator is working for their interests. With their audience watching, negotiators also have more interest in saving face.
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critical thinking questions 1. Distinguish task conflict from relationship conflict and explain
how to apply the former, with minimal levels of the latter. 2. The chief executive officer of Creative Toys, Inc., read about
cooperation in Japanese companies and vowed to bring this same philosophy to the company. The goal is to avoid all conflict, so that employees would work cooperatively and be happier at Creative Toys. Discuss the merits and limitations of the CEO’s policy.
3. Conflict among managers emerged soon after a French com- pany acquired a Swedish firm. The Swedes perceived the French management as hierarchical and arrogant, whereas the French thought the Swedes were naive, cautious, and lacking an achievement orientation. Identify the source(s) of conflict that best explain this conflict, and describe ways to reduce dysfunctional conflict in this situation.
4. You have just been transferred from one unit of the organi- zation to another unit. On the last day of work in the first unit, your current manager calls your new manager, inform- ing her that you are a tough candidate and that you possess an attitude. The would-be manager calls you, providing you with the information, and expresses apprehension. How would you resolve this conflict?
5. You are a special assistant to the commander-in-chief of a peacekeeping mission to a war-torn part of the world. The unit consists of a few thousand peacekeeping troops from the United States, France, India, and four other countries.
The troops will work together for approximately one year. What strategies would you recommend to improve mutual understanding and minimize conflict among these troops?
6. The chief operating officer (COO) has noticed that produc- tion employees in the company’s Mexican manufacturing operations are unhappy with some of the production engineering decisions made by engineers in the company’s headquarters in Chicago. At the same time, the engineers complain that production employees aren’t applying their engineering specifications correctly and don’t understand why those specifications were put in place. The COO be- lieves that the best way to resolve this conflict is to have a frank and open discussion between some of the engineers and employees representing the Mexican production crew. This open dialogue approach worked well recently among managers in the company’s Chicago headquarters, so it should work equally well between the engineers and produc- tion staff. Based on your knowledge of communication and mutual understanding as a way to resolve conflict, discuss the COO’s proposal.
7. Describe the inquisitional approach to resolve disputes be- tween employees or work units. Discuss its appropriateness in organizational settings, including the suitability of its use with a multigenerational workforce.
8. Jane has just been appointed as purchasing manager of Tacoma Technologies, Inc. The previous purchasing manager,
best alternative to a negotiated agreement (BATNA), p. 330 conflict, p. 312 negotiation, p. 327
relationship conflict, p. 314 superordinate goals, p. 323 task conflict, p. 313
third-party conflict resolution, p. 326 win–lose orientation, p. 320 win–win orientation, p. 320
key terms
and the other party would take advantage of a cooperative style. Avoidance is preferred when the conflict has become emotional or the cost of resolution is higher than its benefits. Yielding works well when the other party has substantially more power, the issue is less important to you, and you are not confident in the logical sound- ness of your position. Compromising is preferred when the parties have equal power, they are under time pressure, and they lack trust.
11-5 Apply the six structural approaches to conflict man- agement and describe the three types of third-party dispute resolution.
Structural approaches to conflict management include empha- sizing superordinate goals, reducing differentiation, improving communication and understanding, reducing interdependence, increasing resources, and clarifying rules and procedures. Third-party conflict resolution is any attempt by a relatively neutral person to help the parties resolve their differences. The three main forms of third-party dispute resolution are media- tion, arbitration, and inquisition. Managers tend to use an in- quisition approach, though mediation and arbitration often are more appropriate, depending on the situation.
11-6 Describe the bargaining zone model and outline strategies skilled negotiators use to claim value and create value in negotiations.
Negotiation occurs whenever two or more conflicting parties at- tempt to resolve their divergent goals by redefining the terms of their interdependence. The bargaining zone model identifies three strategic positions for each party (initial, target, resistance) and shows how each party moves along a continuum in opposite directions with an area of potential overlap. All negotiations consist of two divergent objectives: claiming value (getting the best personal outcome) and creating value (discover ways to achieve mutually satisfactory outcomes for both parties). Skilled negotiators claim more value by preparing and setting goals, knowing their alternatives to the negotiation (BATNA), managing time to their advantage, and managing first offers and conces- sions. Skilled negotiators create more value by gathering infor- mation, using offers and concessions to discover issue priorities, and building relationships with the other party. The situation is also an important consideration in negotiations, including loca- tion, physical setting, and audience characteristics.
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CASE STUDY: CAR WARS AT WOLFSBURG By Steven L. McShane, University of Western Australia
Over the past 15 years, Volkswagen Group (VW) acquired several fiefdoms—Audi, Lamborghini, Bentley, Bugatti, Skoda, SEAT—that had jealously guarded their brand and continuously rebelled against sharing knowledge. One mem- ber of VW’s supervisory board (the German equivalent of a board of directors) commented that managing the company is “like trying to ride a chariot with four or five horses, each of which pulls in a different direction.” Then, Porsche AG entered the fray. The luxury sports car company, which relies on VW for some of its production work, began acquiring stock in VW and eventually achieved a con- trolling interest. Porsche CEO Wendelin Wiedeking was aware of VW’s internal rivalries. “If you mix the Porsche guys with the Audi guys and the VW guys you will have trouble,” says Wiedeking. “Each is proud to belong to his own company.” Yet Wiedeking stirred up a different type of conflict as Porsche tightened its grip over VW’s supervisory board. Through an unswerving drive for efficient production and astute marketing, Wiedeking and his executive team trans- formed Porsche into the world’s most profitable and presti- gious car company. Wiedeking wanted to apply those practices at VW by closing down inefficient operations and money-losing car lines. “Wiedeking is a Porsche CEO from another corporate culture,” says German auto analyst Christoph Stuermer. “He’s out to maximize profits by cutting costs. And he snubbed everyone, telling off VW management, interfering with their way of doing business.” Ferdinand Dudenhoeffer, director of Germany’s Center of Automotive Research (CAR), agrees. “Porsche is very successful in being lean and profitable. It’s not going to be harmonious.” Particularly offended by Wiedeking’s plans was VW chair- man Ferdinand Piëch, who had a different vision of Europe’s largest automaker. Piëch, whose grandfather developed the VW Beetle, placed more emphasis on spectacular engineering than exceptional profits. For example, he supported the money- losing Bugatti brand, which VW acquired several years ago when Piëch was CEO. More recently, Piëch championed the Phaeton, VW’s luxury car that broke new ground in innovation (it boasts 100 patents) but has not been a commercial success.
Wiedeking, in contrast, believed that VW could be more profitable if it stopped producing the Phaeton and Bugatti. “Piëch sees his vision endangered by Wiedeking,” says Dudenhoeffer. “Wiedeking said that there are no holy cows at VW, no more Phaetons, no more Bugattis.” These ideas made Piëch’s blood boil. “Anyone who says that VW should pull the Phaeton doesn’t understand the world,” grumbled Piëch, explaining that luxury cars represent the only segment with double-digit growth. There is an unusual twist in the conflict involving Piëch, Wiedeking, and Porsche. Piëch is a member of the Porsche family. He is a cousin of Porsche chairman Wolfgang Porsche and owns a 10 percent share of the Porsche com- pany. Piëch began his career at Porsche and became its chief engineer before moving to Audi and later VW. Further- more, in what many consider a blatant conflict of interest, Piëch supported Porsche’s initial investment in VW. But when Piëch’s and Wiedeking’s plans ended up on a collision course, that initial friendly investment in the partnership turned into all-out corporate war. “There was always a cease- fire between Piëch and the Porsches, but now it’s war,” claims auto analyst Ferdinand Dudenhoeffer. “This is like Dallas and Dynasty in Wolfsburg [city where VW has its headquarters]. No company in the world is so self-absorbed with its problems.”
Postscript
Ironically, Porsche CEO Wendelin Wiedeking’s plans back- fired. Porsche had borrowed heavily to acquire its controlling interest in VW while maintaining its own business opera- tions. Some estimate that Porsche had loans of more than US$14 billion. Furthermore, VW shares increased substan- tially during the takeover process, so Porsche owed massive taxes for the increased “paper profits” of the shares it owned. The timing couldn’t have been worse. The great financial cri- sis hit the world, which cut Porsche sales and dried up funds, making it difficult for Porsche to pay interest on its loans and to renew loans that were coming due. In effect, it was on the brink of bankruptcy. In addition, a unique law allowed one German state (Lower Saxony), which had a 20 percent
who recently retired, was known for his “winner-take-all” approach to suppliers. He continually fought for more dis- counts and was skeptical about any special deals that suppli- ers would propose. A few suppliers refused to do business with Tacoma Technologies, but senior management was confident that the former purchasing manager’s approach minimized the company’s costs. Jane wants to try a more collaborative approach to working with suppliers. Will her approach work? How should she adopt a more collaborative approach in future negotiations with suppliers?
9. You are a new program manager with responsibility for sig- nificant funding and external relations, and because of
downsizing issues in your area, you have lost two valuable employees (actually 1.5, because the second person is on half time now; she used to be your manager and was the person under whom you trained). You have been in the new job approximately two weeks; however, you have been in the unit for more than a year and seen how systems are man- aged, from your manager’s perspective. You now have her job. Out of the blue, a senior person (not in your area) comes to you and says he is taking most of your space (when the company had to let the 1.5 people go). He doesn’t ask your permission, nor does he seem the least bit concerned with what your response is. What do you do?
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CLASS EXERCISE: THE CONTINGENCIES OF CONFLICT HANDLING Gerard A. Callanan and David F. Perri, West Chester University of Pennsylvania
PURPOSE This exercise is designed to help you under- stand the contingencies of applying conflict handling styles in organizational settings.
INSTRUCTIONS
Step 1: Participants will read each of the five scenarios pre- sented next and select the most appropriate response from among the five alternatives. Each scenario has a correct re- sponse for that situation. Step 2 (Optional): The instructor may ask each student to complete the Conflict Handling Style Scale in this chapter (Self-Assessment 11.4) or a similar instrument. This instru- ment will provide an estimate of your preferred conflict han- dling style. Step 3: As a class, participants give their feedback on the re- sponses to each of the scenarios, with the instructor guiding the discussion on the contextual factors embodied in each sce- nario. For each scenario, the class should identify the response selected by the majority. In addition, participants will discuss how they decided on the choices they made and the contex- tual factors they took into account in making their selections. Step 4 (Optional): Students will compare their responses to the five scenarios with their results from the conflict handling self-assessment. Discussion will focus on the extent to which each person’s preferred conflict handling style influenced their alternatives in this activity, and the implications of this style preference for managing conflict in organizations.
SCENARIO #1
Setting
You are a manager of a division in the accounting department of a large eastern U.S. bank. Nine exempt-level analysts and six nonexempt clerical staff report to you. Recently, one of your analysts, Jane Wilson, has sought the bank’s approval for tui- tion reimbursement for the cost of an evening MBA program
specializing in organizational behavior. The bank normally en- courages employees to seek advanced degrees on a part-time basis. Indeed, through your encouragement, nearly all mem- bers of your staff are pursuing additional schoolwork. You con- sult the bank’s policy manual and discover that two approvals are necessary for reimbursement—yours and that of the man- ager of training and development, Kathy Gordon. Further, the manual states that approval for reimbursement will only be granted if the coursework is “reasonably job related.” Based on your review of the matter, you decide to approve Jane’s request for reimbursement. However, Kathy Gordon rejects it out- right, claiming that coursework in organizational behavior is not related to an accounting analyst position. She states that the bank will only reimburse the analyst for a degree in either accounting or finance. In your opinion, however, the interpersonal skills and insights to be gained from a degree in organizational behavior are job related and can also benefit the employee in future assignments. The analyst job requires inter- action with a variety of individuals at different levels in the organization, and it is important that interpersonal and com- munication skills be strong. After further discussion, it becomes clear that you and Kathy Gordon have opposite views on the matter. Since both of you are at the same organizational level and have equal status, it appears that you are at an impasse. Although the goal of reimbursement is important, you are faced with other pressing demands on your time. In addition, the conflict has diverted the attention of your work group away from its primary responsibilities. Because the school term is about to begin, it is essential that you and Kathy Gordon reach a timely agreement to enable Jane to pursue her coursework.
Action Alternatives for Scenario #1
Please indicate your first (1) and second (2) choices from among the following alternatives by writing the appropriate number in the space provided.
ownership in VW, to veto any important decisions in the company, including Porsche’s control of VW. Ultimately, Porsche agreed to give up its controlling interest in VW. Instead, it sold some of its business to VW and the Qatar government and, ultimately, agreed to be acquired by VW (rather than vice versa). Wiedeking lost his job as Porsche CEO, whereas Ferdinand Piëch (as chairman of VW’s supervi- sory board) would effectively be head of both automakers. Complicated legal and financial matters delayed the complete acquisition, but VW recently completed its takeover of Porsche.
Discussion Questions
1. Identify and discuss the sources of conflict between Porsche and Volkswagen executives.
2. Describe the conflict handling styles used by Wendelin Wiedeking and Ferdinand Piëch. Were they appropriate in this situation?
The facts of this case were pieced together by Steven L. McShane from the following sources: M. Landler, “Twist in the Intrigue at VW May Help Chief Keep His Job,” The New York Times, 21 April 2006, 5; R. Hutton, “Porsche Ready to Swallow VW,” Autocar, 7 November 2007; “German Carmaker Family Feud Plays out in VW Boardroom,” Deutsche Welle, 18 September 2008; D. Hawranek, “Clans, Executives Sharpen Knives Backstage at Porsche and VW,” Spiegel Online, 11 March 2008; N.D. Schwartz, “Porsche Takes a Controlling Interest in VW,” The New York Times, 17 September 2008; D. Hawranek, “German Carmaker Narrowly Averts Bankruptcy,” Spiegel Online, 25 May 2009; C. Dougherty, “Porsche Chief Pays Full Price for His Overreach,” International Herald Tribune, 24 July, 2009, 1; Adam Bryant, “VW-Porsche Merger Ends Years of Wrangles,” Financial Times (London), 5 July 2012.
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SCENARIO #2
Setting
You are the vice president of a relatively large division (80 employees) in a medium-sized consumer products company. Due to the recent turnover of minority staff, your division has fallen behind in meeting the company’s goal for Equal Employment Opportunity (EEO) hiring. Because of a scar- city of qualified minority candidates, it appears that you may fall further behind in achieving stated EEO goals. Although you are aware of the problem, you believe that the low level of minority hiring is due to increased attrition in minority staff, as well as the lack of viable replacement candi- dates. However, the EEO officer believes that your hiring crite- ria are too stringent, resulting in the rejection of minority candidates with the basic qualifications to do the job. You
support the goals and principles of EEO; however, you are concerned that the hiring of less-qualified candidates will weaken the performance of your division. The EEO officer be- lieves that your failure to hire minority employees is damaging to the company in the short term because corporate goals will not be met, and in the long term because it will restrict the pool of minority candidates available for upward mobility. Both of you regard your concerns as important. Further, you recognize that both of you have the company’s best interests in mind and that you have a mutual interest in resolving the conflict.
Action Alternatives for Scenario #2
Please indicate your first (1) and second (2) choices from among the following alternatives by writing the appropriate number in the space provided.
SCENARIO #3
Setting
You are the manager in charge of the financial reporting sec- tion of a large insurance company. It is the responsibility of your group to make periodic written and oral reports to senior management regarding the company’s financial performance. The company’s senior management has come to rely on your quick and accurate dissemination of financial data as a way to make vital decisions in a timely fashion. This has given you a relatively high degree of organizational influence. You rely on
various operating departments to supply you with financial information according to a preestablished reporting schedule. In two days, you must make your quarterly presentation to the company’s Board of Directors. However, the Claims De- partment has failed to supply you with several key pieces of information that are critical to your presentation. You check the reporting schedule and realize that you should have had the information two days ago. When you call Bill Jones, the Claims Department manager, he informs you that he cannot possibly have the data to you within the next two days. He
ACTION ALTERNATIVE RANKING (1ST & 2ND)
1. You go along with Kathy Gordon’s view and advise Jane Wilson to select either accounting or finance as a major for her MBA.
2. You decide to withdraw from the situation completely, and tell Jane to work it out with Kathy Gordon on her own.
3. You decide to take the matter to those in higher management levels and argue forcefully for your point of view. You do everything in your power to ensure that a decision will be made in your favor.
4. You decide to meet Kathy Gordon halfway in order to reach an agreement. You advise Jane to pursue her MBA in accounting or finance, but also recommend that she minor in organizational behavior by taking electives in that field.
5. You decide to work more closely with Kathy Gordon by attempting to get a clear as well as flexible policy written that reflects both of your views. Of course, this will require a significant amount of your time.
ACTION ALTERNATIVE RANKING (1ST & 2ND)
1. You conclude that the whole problem is too complex an issue for you to handle right now. You put it on the “back burner” and decide to reconsider the problem at a later date.
2. You believe that your view outweighs the perspective of the EEO officer. You decide to argue your position more vigorously and hope that your stance will sway the EEO officer to agree with your view.
3. You decide to accept the EEO officer’s view. You agree to use less stringent selection criteria and thereby hire more minority employees.
4. You give in to the EEO officer somewhat by agreeing to relax your standards a little bit. This would allow slightly more minority hiring (but not enough to satisfy the EEO goal) and could cause a small reduction in the overall performance of your division.
5. You try and reach a consensus that addresses each of your concerns. You agree to work harder at hiring more minority applicants and request that the EEO officer agree to help find the most qualified minority candidates available.
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states that other pressing work has a higher priority. Although you explain the critical need for this data, he is unwilling to change his position. You believe that your presentation is vital to the company’s welfare and explain this to Bill Jones. Although Bill has less status than you, he has been known to take advantage of individuals who are unwilling or unable to push their point of view. With your presentation less than
two days away, it is critical that you receive information from the Claims Department within the next 24 hours.
Action Alternatives for Scenario #3
Please indicate your first (1) and second (2) choices from among the following alternatives by writing the appropriate number in the space provided.
SCENARIO #4
Setting
You are the production manager of a medium-sized building products company. You control a production line that runs on a three-shift basis. Recently, Ted Smith, the materials handling manager, requested that you accept a different packaging of the raw materials for the production process than what has been customary. He states that new machinery he has installed makes it much easier to provide the material in 100-pound sacks instead of the 50-pound bags that you currently receive. Ted further explains that the provision of the material in the 50-pound bags would put an immense strain on his operation, and he therefore has a critical need for you to accept the change. You know that accepting materials in the new packag- ing will cause some minor disruption in your production pro- cess, but it should not cause long-term problems for any of the
three shifts. However, you are a little annoyed by the proposed change, because Ted did not consult with you before he in- stalled the new equipment. In the past, you and he have been open in your communication. You do not think that this fail- ure to consult you represents a change in your relationship. Because you work closely with Ted, it is essential that you maintain the harmonious and stable working relationship that you have built over the past few years. In addition, you may need some help from him in the future, since you al- ready know that your operation will have special material re- quirements in about two months. You also know that Ted has influence at higher levels of the organization.
Action Alternatives for Scenario #4
Please indicate your first (1) and second (2) choices from among the following alternatives by writing the appropriate number in the space provided.
SCENARIO #5
Setting
You are employed as supervisor of the compensation and benefits section in the human resources department of a me- dium-sized pharmaceutical company. Your staff of three clerks is responsible for maintaining contacts with the various
benefits providers and answering related questions from the company’s employees. Your section shares secretarial, word processing, and copier resources with the training and devel- opment section of the department. Recently, a disagree- ment has arisen between you and Beth Hanson, the training and development supervisor, over when the secretarial staff
ACTION ALTERNATIVE RANKING (1ST & 2ND)
1. Accept the explanation from Bill Jones and try to get by without the figures by using your best judgment as to what they would be.
2. Tell Bill Jones that unless you have the data from his department on your desk by tomorrow morning, you will be forced to go over his head to compel him to give you the numbers.
3. Meet Bill Jones halfway by agreeing to receive part of the needed figures and using your own judgment on the others.
4. Try to get your presentation postponed until a later date, if possible.
5. Forget about the short-term need for information and try to achieve a longer term solution, such as adjusting the reporting schedule to better accommodate your mutual needs.
ACTION ALTERNATIVE RANKING (1ST & 2ND)
1. Agree to accept the raw material in the different format.
2. Refuse to accept the material in the new format because it would cause a disruption in your operation.
3. Propose a solution where you accept material in the new format during the first shift but not during the second and third.
4. Tell Ted Smith that you do not wish to deal with the issue at this time, but that you will consider his request and get back to him at a later date.
5. You decide to tell Ted Smith of your concern regarding his failure to consult with you before installing new equipment. You inform him that you wish to find longer term solutions to the conflict between you.
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SELF-ASSESSMENT
WHAT IS YOUR PREFERRED CONFLICT HANDLING STYLE? PURPOSE This self-assessment is designed to help you identify your preferred conflict management style.
INSTRUCTIONS Read each of the statements on the next page and select the response that best indicates how of- ten you handled conflict in the way described in that state-
ment. Then, use the scoring key in Appendix B to calculate your results for each conflict management style. This exercise is completed alone so students assess themselves honestly without concerns of social comparison. However, class dis- cussion will focus on the different conflict management styles and the situations in which each is most appropriate.
TEAM EXERCISE: UGLI ORANGE ROLE PLAY PURPOSE This exercise is designed to help you understand the dynamics of interpersonal and intergroup conflict, as well as the effectiveness of negotiation strategies in specific conditions.
MATERIALS The instructor will distribute roles for Dr. Roland, Dr. Jones, and a few observers. Ideally, each negotiation should occur in a private area, away from the other negotiations.
INSTRUCTIONS
Step 1: The instructor will divide the class into an even number of teams of three people each, with one participant left over for each team formed (e.g., six observers if there are six teams). One-half of the teams will take the role of Dr. Roland and the other half will be Dr. Jones. The instructor will distribute roles after these teams have been formed. Step 2: Members within each team are given 10 minutes (or another time limit stated by the instructor) to learn their roles and decide their negotiating strategy.
Step 3: After reading their roles and discussing strategy, each Dr. Jones team is matched with a Dr. Roland team to conduct negotiations. Observers will receive observation forms from the instructor, and two observers will be assigned to watch the paired teams during pre-negotiations and subse- quent negotiations. Step 4: As soon as Roland and Jones reach agreement or at the end of the time allotted for the negotiation (whichever comes first), the Roland and Jones teams report to the in- structor for further instruction. Step 5: At the end of the exercise, the class will congregate to discuss the negotiations. Observers, negotiators, and instruc- tors will then discuss their observations and experiences and the implications for conflict management and negotiation.
This exercise was developed by Robert J. House, Wharton Business School, University of Pennsylvania. A variation of this incident involving sisters is also described in R. Fisher, W. Ury, and B. Patton, Getting to Yes: Negotiating Agreement without Giving In, 2nd Ed. (New York: Harvard University, 1991).
should take their lunch breaks. Beth would like the secretarial staff to take their lunch breaks an hour later, to coincide with the time most of her people go to lunch. You know that the secretaries do not want to change their lunch times. Further, the current time is more convenient for your staff. At this time, you are hard-pressed to deal with the situation. You have an important meeting with the provider of dental
insurance in two days. It is critical that you are well prepared for this meeting, and these other tasks are a distraction.
Action Alternatives for Scenario #5
Please indicate your first (1) and second (2) choices from among the following alternatives by writing the appropriate number in the space provided.
ACTION ALTERNATIVE RANKING (1ST & 2ND)
Source: G. A. Callanan and D. F. Perri, “Teaching Conflict Management Using a Scenario-Based Approach,” Journal of Education for Business, 81 ( Jan/Feb 2006), pp. 131–139.
1. Take some time over the next day and propose a solution whereby three days a week, the secretaries take their lunch at the earlier time, but the other two days, they take lunch at the later time.
2. Tell Beth Hanson you will deal with the matter in a few days, after you have addressed the more pressing issues.
3. Let Beth Hanson have her way by agreeing to a later lunch hour for the secretarial staff.
4. Flat out tell Beth Hanson that you will not agree to a change in the secretaries’ lunchtime.
5. Devote more time to the issue. Attempt to achieve a broad-based consensus with Beth Hanson that meets her needs as well as yours and those of the secretaries.
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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.
Conflict Handling Style Scale
OVER THE PAST SIX (6) MONTHS, HOW OFTEN DID YOU NEVER/ ALMOST DO THE FOLLOWING TO HANDLE CONFLICTS? RARELY SELDOM SOMETIMES OFTEN ALWAYS
Sources: This scale was created by Steven L. McShane, based on information or previous instruments provided in R. R. Blake, H. A. Shepard, and J. S. Mouton, Managing Intergroup Conflict in Industry (Houston, TX: Gulf Publishing, 1964); K. W. Thomas, “Conflict and Negotiation Processes in Organizations,” in Handbook of Industrial and Organizational Psychology, M. D. Dunnette and L. M. Hough, eds., 2nd ed. (Palo Alto, CA: Consulting Psychologists Press, 1992), pp. 651–718; C. K. W. de Dreu, A. Evers, B. Beersma, E. S. Kluwer, and A. Nauta, “A Theory-Based Measure of Conflict Management Strategies in the Work- place,” Journal of Organizational Behavior, 22 (2001), pp. 645–68; M. A. Rahim, Managing Conflict in Organizations, 4th ed. (New Brunswick, NJ: Transaction Publishers, 2011).
1. I went along with the other party’s wishes rather than my own.
2. I compromised by accepting a middle ground solution.
3. I tried to creatively find the best solution for everyone.
4. I avoided differences of opinion as much as possible.
5. I pushed my own ideas and preferences.
6. I tried to make the dispute seem less important.
7. I accommodated the other party’s wishes.
8. I did my best to get what I wanted.
9. I tried to figure out how to satisfy both my interests and the other party’s.
10. I made sure that both sides gave in a little.
11. I worked toward a 50–50 compromise.
12. I fought for my own position.
13. I searched for a solution that satisfied both parties.
14. I delayed or avoided solving the disagreement.
15. I held my position.
16. I let the other side have its way.
17. I tried to settle the conflict with a half-way compromise.
18. I tried to find a solution that benefited both sides.
19. I avoided communicating with the people with whom I had the conflict.
20. I gave the other party what it wanted.
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Leadership in Organizational Settings
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c ha pter
After reading this chapter, you should be able to:
12-1 Define leadership and shared leadership.
12-2 Describe the four elements of transformational leadership and explain why they are important for organizational change.
12-3 Compare managerial leadership with transformational leadership, and describe the features of task-oriented, people-oriented, and servant leadership.
12-4 Discuss the elements of path-goal theory, Fiedler’s contingency model, and leadership substitutes.
12-5 Describe the two components of the implicit leadership perspective.
12-6 Identify eight competencies associated with effective leaders and describe authentic leadership.
12-7 Discuss cultural and gender similarities and differences in leadership.
12
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avid Thodey knew he faced a monumental challenge as chief executive of Telstra, Australia’s largest telecommunications company. Under the previous CEO, Telstra was so antagonistic to most stakeholders that the Australian government threatened to limit the company’s
growth options. Customer complaints against Telstra skyrocketed 300 percent
during the three years before Thodey took the reins. Employee morale had
plummeted, along with Telstra’s share price. Only its copper lines monopoly,
investment in next-generation mobile broadband, and employees’ technological
skills kept Telstra sufficiently buoyant.
In spite of these formidable challenges, Thodey confidently led Telstra through a
spectacular transformation. At the center of this change was Thodey’s vision that
Telstra will have an “unyielding focus on customer service.” To achieve that ideal,
Thodey introduced much more customer service and technical training and gave
employees greater job autonomy to resolve customer issues. He also introduced
performance bonuses, which are determined by customer surveys and internal
customer service metrics. “This is important because it starts to change the culture
and the dynamics of the company,” says Thodey.
Thodey personally symbolizes the customer-centric vision by reading customer
e-mails and other correspondence, regularly visiting clients, and answering customer
calls in contact centers. “I have always had and enjoyed a focus on really knowing
what’s going on at the front line, and I talk to customers a lot because you can’t get
too distant from the reality of everyday business,” Thodey explains.
Complementing this customer focus is “Project New,” a continuous improvement
process of simplifying and reducing the costs of internal work processes. Project
New has decentralized decision making, reduced hierarchy (fewer middle managers),
and increased self-serve online resources (which customers wanted). Thodey
explains that improving Telstra’s efficiency is part of the customer-focused vision.
“If you get the simplicity, you’ll have a better customer service,” Thodey explains.
“You’ll have happier employees and, in the end, you deliver a better result for your
customers.”
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David Thodey has transformed Telstra, the Australian telecommunications giant, through effective leadership practices.
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342 Part Three Team Processes
Telstra has a way to go, but the improvements are already apparent.
Telstra customer complaints have plummeted (they have increased at other
telecommunication firms), and the company has reduced costs by more than
$1 billion. But Thodey says his real vision goes beyond customer service and
efficient operations: “It’s actually more about changing the way people talk about
Telstra,” Thodey says. “If we could ever realize that dream of Australians being
proud of what Telstra does, because we deliver great service and great product.
That creates value for shareholders and employees.”1
Telstra’s transformation illustrates how leaders such as David Thodey can make a difference in an organization’s survival and success. This opening case study also highlights specific as- pects of leadership, such as the leader’s vision, persistence, communication, and modeling the desired behavior. Leadership is one of the most researched and discussed topics in the field of organizational behavior.2 Google returns a whopping 306 million web pages that mention “leadership,” and Google Scholar lists 216,000 journal articles and books with “leader” or “leadership” in the title. Amazon lists more than 27,000 books in the English language with “leadership” in the title. From 2000 to 2009, the U.S. Library of Congress catalogue added 7,336 books or documents with the words “leader” or “leadership” in the citation, compared with 3,054 items added in the 1990s and only 146 items with these words (many of which were newspaper names) added during the first decade of the 1900s.
The topic of leadership captivates us because we are awed by individuals who influence and motivate a group of people beyond expectations. This chapter explores leadership from four perspectives: transformational, managerial, implicit, and competency.3 Although some of these perspectives are currently more popular than others, each helps us more fully under- stand the complex issue of leadership. The final section of this chapter looks at cross-cultural and gender issues in organizational leadership. But first, we learn about the meaning of leadership and shared leadership.
What Is Leadership? Several years ago, 54 leadership experts from 38 countries reached a consensus that leadership is about influencing, motivating, and enabling others to contribute toward the effectiveness and success of the organizations of which they are members.4 This definition has two key components. First, leaders motivate others through persuasion and other influ- ence tactics. They use their communication skills, rewards, and other resources to energize the collective toward the achievement of challenging objectives. Second, leaders are enablers. They arrange the work environment—such as allocating resources, altering work relation- ships, and buffering from outside interferences—so employees can achieve organizational objectives more easily.
SHARED LEADERSHIP As part of its employee engagement initiative, Rolls-Royce Engine Services in Oakland, California, involved employees directly with clients, encouraged weekly huddles for infor- mation sharing, and accepted employee requests for less micromanagement. Employees at the aircraft engine repair facility not only experienced higher levels of engagement and em- powerment; they also accepted more leadership responsibilities. “I saw people around me, all front-line employees, who were leaders,” says a machine programmer at the Rolls-Royce Oakland plant. “They weren’t actually leading the company, but they were people you would listen to and follow. We didn’t have titles, but people had respect for what we did.”5
LO 12-1
leadership
Influencing, motivating, and enabling others to contribute toward the effectiveness and success of the organizations of which they are members.
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Chapter Twelve Leadership in Organizational Settings 343
Rolls-Royce Engine Services has moved toward greater shared leadership by encourag- ing and enabling employees throughout the organization to informally assume leadership responsibilities in various ways and at various times.6 Shared leadership is based on the idea that leadership is a role, not a position. It doesn’t belong to just one individual in the work unit. Instead, employees lead each other as the occasion arises. Shared leadership exists when employees champion the introduction of new technologies and products.7 It also exists when employees engage in organizational citizenship behaviors that improve the perfor- mance and well-being of coworkers and the overall team.
Shared leadership typically supplements formal leadership; that is, employees lead along with the formal manager, rather than replace the manager. However, W. L. Gore & Associates, Semco SA, Valve Corporation, and a few other unique companies rely almost completely on shared leadership because they don’t have any formal managers on the organizational chart.8 In fact, when Gore employees are asked in annual surveys “Are you a leader?” more than 50 percent of them answer “Yes.”
The idea of shared leadership is quickly gaining popularity in the business community. For example, Fiat and Chrysler CEO Sergio Marchionne recently said: “We’ve abandoned the Great Man model of leadership that long characterized Fiat and have created a culture where everyone is expected to lead.”10 But the notion that everyone takes on an informal leadership role has a long history. John Gardner, the former White House Cabinet member who introduced Medicare, wrote more than two decades ago that the “vitality” of large orga- nizations depends on shared leadership.11 He argued that organizations depend on employees across all levels of the organization to seek out opportunities and solutions rather than rely on formal leaders to do so. Gardner observed, for example, that successful teams consist of indi- viduals other than the formal leader who take responsibility for healing rifts when conflicts arise and for building confidence in others when events have turned for the worse.
Shared leadership flourishes in organizations where the formal leaders are willing to delegate power and encourage employees to take initiative and risks without fear of failure (i.e., a learning orientation culture). Shared leadership also calls for a collaborative rather than in- ternally competitive culture, because employees take on shared leadership roles when coworkers support them for their initiative. Furthermore, shared leadership lacks formal authority, so it operates best when employees learn to influence others through their enthu- siasm, logical analysis, and involvement of coworkers in their idea or vision.
The Palo Verde Nuclear Generating Station is the largest nuclear power plant in the United States, producing enough electricity to serve 4 million people in California, Arizona, New Mexico, and Texas. Along with extensive technical and team- related training, Palo Verde Nuclear’s 3,000 employees learn about the company’s leadership model, which emphasizes safety, operational focus, long-term productivity, and cost effectiveness. The overarching principle of that leadership model is: “Every employee is a leader, regardless of title or position.” In other words, the company encourages shared leadership, whereby everyone is expected to serve as a leader to fulfill the company’s key objectives.9
shared leadership
The view that leadership is a role, not a position assigned to one person, such that people within the team and organization lead each other.
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344 Part Three Team Processes
Transformational Leadership Perspective Leadership research can be roughly organized into the four perspectives mentioned earlier: transformational, managerial, implicit, and competency. By far the most popular leader- ship perspective today—and arguably the most important in the domain of leadership—is transformational leadership. Transformational leadership views leaders as change agents. They create, communicate, and model a shared vision for the team or organization. They encourage experimentation so employees find a better path to the future. Through these and other activities, transformational leaders also build commitment in followers to strive for that vision. There are several models of transformational leadership, but four elements are common throughout most of them and represent the core concepts of this leadership perspective: develop and communicate a strategic vision, model the vision, encourage experimentation, and build commitment to the vision (see Exhibit 12.1).12
DEVELOP AND COMMUNICATE A STRATEGIC VISION The heart of transformational leadership is a strategic vision.13 A vision is a positive repre- sentation of a future state that energizes and unifies employees.14 Sometimes this vision is created by the leader; at other times, it is formed by employees or other stakeholders and then adopted and championed by the formal leader. The opening case study to this chapter described how Telstra CEO David Thodey championed a customer-centric vision. Simi- larly, John Fikany, vice president and general manager of the Microsoft regional offices in Southfield, Michigan, recently pointed out that the software giant’s employees feel highly engaged because he emphasizes an appealing vision of the company’s purpose. “Microsoft
Visit connect.mcgrawhill.com for activities and test questions to help you learn about leadership perspectives.
Encourage experimentation
Model the vision
Develop/ communicate a strategic vision
Build commitment to the vision
Elements of Transformational
Leadership
EXHIBIT 12.1
Elements of Transformational Leadership
transformational leadership
A leadership perspective that explains how leaders change teams or organizations by creating, communicating, and modeling a vision for the organization or work unit and inspiring employees to strive for that vision.
LO 12-2
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Chapter Twelve Leadership in Organizational Settings 345
is not just about software; it’s not just about making money. It’s about making a differ- ence,” Fikany enthuses. “When you feel connected to a bigger vision, part of something more, it doesn’t feel like work.”15
There are several features of an effective strategic vision.16 It refers to an idealized future state with a higher purpose. This purpose is associated with personal values that directly or indirectly fulfill the needs of multiple stakeholders. A values-based vision is also meaningful and appealing to employees, which energizes them to strive for that ideal. A vision needs to energize employees, because it is usually a distant goal that is both challenging and abstract. A vision is challenging, because it requires substantial transformation, such as new work practices and belief systems.
A strategic vision is necessarily abstract for two reasons. First, this appealing image of the future hasn’t yet been experienced (at least, not in this company or industry), so it isn’t pos- sible to detail what the vision looks like. More important, an abstract description enables the vision to remain stable over time, yet is sufficiently flexible to accommodate operational adjustments in a shifting external environment. For example, Telstra’s customer-centric vi- sion does not refer to specific goals such as broadband access or mobile reception, just to the continuous ideal of serving customers better.
Another feature of an effective vision is that it is unifying. It bonds employees and often other stakeholders together because it is a common, superordinate objective, aligned with their personal values and the organization’s values. In fact, a successful vision is really a shared vision, because employees collectively define themselves by this future state as part of their identification with the organization.
Communicate the Vision A strategic vision’s effectiveness depends on how leaders convey it to followers and other stakeholders.18 Words shape how we view the world, so successful transformational leaders carefully choose phrases that “frame” the vision and evoke desired images of the ideal future. For example, leaders at DaVita refer to the com-
pany as a village, and employees (called teammates) are citi- zens of that village who “cross the bridge,” meaning that they make a commitment to the community. “The words we use, while simple in nature, are packed with meaning,” explains an executive at the largest dialysis treatment group in the United States.19 Leaders also communicate the vision with a sincerity and level of passion that reflects their personal belief in the vision, as well as the optimism that it can be reached. In other words, leaders communicate the vision nonverbally as well as verbally.
Commercial radio station group UKRD is the top-ranked company to work for in the United Kingdom and is particularly noted for its excellent leadership. More than 90 percent of UKRD’s 250 employees across 17 stations say CEO William Rogers (shown here) is an inspirational leader who lives by the company’s dominant values. When asked what makes a good leader, Rogers identifies two key features. One is that leaders need to empathize with employees. The other is “clarity of vision, so people can say: ‘I know where we’re going, what this journey is about, what our noble cause is.’ For us, it’s not just running a radio group and commercial success—it’s about changing people’s lives, impacting on communities.”17
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346 Part Three Team Processes
A third way leaders communicate the vision is through symbols, metaphors, stories, and other vehicles that transcend plain language.20 These tools borrow images of other experi- ences, thereby creating richer meaning of the not-yet-experienced vision. Borrowing from existing experiences also generates desired emotions, which motivates people to pursue the vision. When George Cohen faced the difficult challenge of opening McDonald’s restau- rants in Moscow, he frequently reminded his team members that they were establishing “hamburger diplomacy.” And in the mid-1800s, when ocean transportation was treacher- ous, Samuel Cunard emphasized that he was creating an “ocean railway.” At the time, rail- roads provided one of the safest forms of transportation, and Cunard’s metaphor reinforced the notion to employees and passengers alike that Cunard Steamship Lines would provide equally safe transportation across the Atlantic ocean.21
MODEL THE VISION Transformational leaders not only talk about a vision; they enact it. They “walk the talk” by stepping outside the executive suite and doing things that symbolize the vision.22 Leaders model the vision through significant events such as visiting customers, moving their offices closer to (or further from) employees, and holding ceremonies to symbolize significant change. However, they also enact the vision by ensuring that the more mundane daily activities—meeting agendas, dress codes, executive schedules—are consistent with the vi- sion and its underlying values.
Modeling the vision is important because it legitimizes and demonstrates what the vi- sion looks like in practice. Modeling is also important because it builds employee trust in the leader. The greater the consistency between the leader’s words and actions, the more employees will believe in and be willing to follow the leader. In fact, one survey reported that leading by example is the most important characteristic of a leader.23 “We hold our leaders to an even higher standard than our employees,” says Nathan Bigler, human re- source director at Eastern Idaho Regional Medical Center. “Leaders have to consistently walk the talk.”24
ENCOURAGE EXPERIMENTATION Transformational leadership is about change, and central to any change is discovering new behaviors and practices that are better aligned with the desired vision. Thus, effective trans- formational leaders encourage employees to question current practices and to experiment with new ways that are potentially more consistent with the visionary future state.25 In other words, transformational leaders support a learning orientation (see Chapter 7). They encourage employees to continuously question the way things are currently done, actively experiment with new ideas and practices, and view reasonable mistakes as a natural part of the learning process.26
This element of transformational leadership is evident in David Thodey’s leadership at Telstra. The opening case study to this chapter mentioned that Thodey gave employees more autonomy so they could address customer needs, but this autonomy also enabled them to find better ways to achieve the company’s customer-centric vision in the long run. Thodey also formed a special team of employees in Project New to discover more efficient ways to
What are your transformational leadership tendencies? Visit connect. mcgrawhill.com to estimate your transformational leadership score, and learn about this concept.
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Chapter Twelve Leadership in Organizational Settings 347
serve customers, including online systems where customers can feel more empowered to manage their own accounts and apply for new products and services.
BUILD COMMITMENT TOWARD THE VISION Transforming a vision into reality requires employee commitment, and transformational leaders build this commitment in several ways.27 Their words, symbols, and stories build a contagious enthusiasm that energizes people to adopt the vision as their own. Leaders demonstrate a “can-do” attitude by enacting and behaving consistently with their vision. This persistence and consistency reflect an image of honesty, trust, and integrity. By encour- aging experimentation, leaders involve employees in the change process so it is a collective activity. Leaders also build commitment through rewards, recognition, and celebrations as they pass milestones along the road to the desired vision.
TRANSFORMATIONAL LEADERSHIP AND CHARISMA Some models include the leader’s charisma as an element of transformational leadership. They describe charismatic leadership either as an essential ingredient of transformational leadership or as transformational leadership in its highest form of excellence.28 However, the emerging view, which this book adopts, is that charisma is distinct from transformational leadership. Charisma is a personal trait or relational quality that provides referent power over followers, whereas transformational leadership is a set of behaviors that engage follow- ers toward a better future.29
Transformational leadership motivates followers through behaviors that persuade and earn trust, whereas charismatic leadership motivates followers directly through the leader’s inherent referent power. For instance, communicating an inspiring vision is a transforma- tional leadership behavior that motivates followers to strive for that vision. This motiva- tional effect exists separate from the leader’s charismatic appeal. If the leader is highly charismatic, however, his or her charisma will amplify follower motivation.
Being charismatic is not inherently good or bad, but several research studies have con- cluded that charismatic leaders can produce negative consequences.31 One concern with charismatic leadership is that it tends to produce dependent followers. Transformational leadership has the opposite effect; it builds follower empowerment, which tends to reduce dependence on the leader. Another concern is that leaders who possess the gift of charisma may become intoxicated by this power, which leads to a greater focus on self-interest than on the common good. “Charisma becomes the undoing of leaders,” warns Peter Drucker.
“It makes them inflexible, convinced of their own infallibility, unable to change.”32 The late management guru witnessed the destructive effects of charismatic political leaders in Europe a century ago and foresaw that this personal or relational characteristic would create similar problems for
Tencent founder and CEO “Pony” Ma Huateng has led China’s social media revolution, yet he is described more as a humble college grad than an overconfident charismatic leader. “Ma always smiles, but more like a shy fresh graduate, rather than a sophisticated and charismatic leader,” says one of China’s major newspapers. Starting with a basic instant messaging service, Ma expanded the company into microblogging (Tencent Weibo), social networking (Qzone), online games, and online payments (TenPay). It recently launched a walkie-talkie style text/voice messaging system (WeChat), which already has 300 million users worldwide. Rather than relying on “the gift” of charisma, Ma has built Tencent through transformational leadership behaviors, including his vision of continuous innovation, encouragement of experimentation, and modeling that innovative spirit.30
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348 Part Three Team Processes
organizations. The main point here is that transformational leaders are not necessarily charismatic, and charismatic leaders are not necessarily transformational.
EVALUATING THE TRANSFORMATIONAL LEADERSHIP PERSPECTIVE Transformational leaders do make a difference.33 Subordinates are more satisfied and have higher affective organizational commitment under transformational leaders. They also per- form their jobs better, engage in more organizational citizenship behaviors, and make better or more creative decisions. One study of bank branches reported that organizational com- mitment and financial performance seem to increase where the branch manager completed a transformational leadership training program.34
Transformational leadership is currently the most popular leadership perspective, but it faces a number of challenges.35 One problem is that some models engage in circular logic. They define and measure transformational leadership by its effects on employees (e.g., in- spire employees), then (not surprisingly) report that this leadership is effective because it inspires employees. Instead, transformational leadership needs to be defined purely as a set of behaviors that people use to lead others through the change process. A second concern is that some transformational leadership theories combine leader behaviors with the leader’s personal characteristics of leaders. For instance, transformational leaders are described as visionary, imaginative, sensitive, and thoughtful, yet these personal characteristics are really predictors of transformational leadership behaviors.
A third concern is that transformational leadership is usually described as a universal concept, that is, it is good in all situations. Only a few studies have investigated whether this form of leadership is more valuable in some situations than others.36 For instance, transfor- mational leadership is probably more appropriate when organizations need to continuously adapt to a rapidly changing external environment than when the environment is stable. Preliminary evidence suggests that the transformational leadership perspective is relevant across cultures. However, there may be specific elements of transformational leadership, such as the way visions are communicated and modeled, that are more appropriate in North America than in other cultures.
Managerial Leadership Perspective Leaders don’t spend all (or even most) of their time transforming the organization or work unit. They also engage in managerial leadership—daily activities that support and guide the performance and well-being of individual employees and the work unit to support cur- rent objectives and practices. Leadership experts recognize that leading (transformational leadership) differs from managing (managerial leadership).37 Although the distinction be- tween these two perspectives remains somewhat fuzzy, each cluster has a reasonably clear set of activities and strong research foundation.
One distinction between the two perspectives is that managerial leadership assumes the organization’s (or department’s) objectives are stable and aligned with the external environ- ment.38 It focuses on continuously developing or maintaining the effectiveness of employees and work units for achieving established objectives and practices. In contrast, transforma- tional leadership assumes the organization’s current direction is misaligned and therefore needs to change. This distinction is captured in the often-cited statement: “Managers are people who do things right, and leaders are people who do the right thing.”39 Managers (more correctly, managerial leadership behaviors) “do things right” by enabling employees to perform established goals more effectively. Leaders (more correctly, transformational leader- ship behaviors) “do the right thing” by redirecting the organization toward a path that is better aligned with the external environment.
LO 12-3
managerial leadership
A leadership perspective stating that effective leaders help employees improve their performance and well-being toward current objectives and practices.
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Chapter Twelve Leadership in Organizational Settings 349
A second distinction is that managerial leadership is more micro-focused and concrete, because it relates to the specific performance and well-being objectives of individual employ- ees and the immediate work unit. Transformational leadership is more macro-focused and abstract. It is directed toward an abstract strategic vision for an entire organization, depart- ment, or team.
Although transformational and managerial leadership are discussed here as two separate leadership perspectives, they are better described as interdependent perspectives.40 Transfor- mational leadership and managerial leadership depend on each other. Transformational leadership identifies, communicates, and builds commitment to a better future for the col- lective, but these behaviors are not enough for organizational success. That success also re- quires managerial leadership to translate the abstract vision into more specific operational behaviors and practices and to continuously improve employee performance and well-being in the pursuit of that future ideal.
Managerial leadership depends on transformational leadership to set the right direc- tion. Otherwise, managers produce operational excellence and pursue long-range goals that are misaligned with the organization’s long-term survival, and to which employees lack commitment. For instance, the leaders at Dell Inc. relied on managerial excellence to produce low-cost computers, yet the company subsequently suffered because the external environment shifted toward higher-priced, innovative products.42 Successful managerial leadership (operational efficiency with reasonably happy employees) was not enough to make Dell successful. It also needed transformational leadership to develop a vision that aligned the company’s products more closely with the marketplace and inspire employees to work toward that vision.
An important message here is that managerial and transformational leadership are not embodied in different people or positions in the organization. As you might expect, senior executive positions require more transformational leadership behavior than do manage- ment positions further down the hierarchy, because transformational leadership requires more discretion to enable macro-level change. However, every manager needs to apply both transformational and managerial behaviors to varying degrees. Even frontline em- ployees who engage in shared leadership may be managerial (helping coworkers through a difficult project) or transformational (championing a more customer-friendly culture in the work unit).
T.G.I. Friday’s UK business is thriving, thanks to the vision and managerial skill of CEO Karen Forrester. Forrester saw huge potential for the Texas-based company’s British operations, which were suffering from neglect. Her vision was to “bring the magic back” so customers could expect a consistently enjoyable restaurant experience based on authentic service. But Forrester complements this transformational leadership with managerial leadership behavior. She weeded out staff who lacked commitment to revive the restaurant. She invested heavily in training so staff would serve customers better and more confidently. Forrester was recently named most people- focused CEO in the United Kingdom, because she also demonstrates supportive leadership through her empathy, respect, and enthusiasm. “Without a doubt this industry is all about people,” says Forrester. “If your people are looked after and they’re happy, then your guests will be happy.”41
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350 Part Three Team Processes
TASK-ORIENTED AND PEOPLE-ORIENTED LEADERSHIP Managerial leadership research began in the 1940s and 1950s, when research teams at three major U.S. universities launched an intensive research investigation to answer the question, “What behaviors make leaders effective?” They studied first-line supervisors by asking sub- ordinates to rate their bosses on many behaviors. These independent research teams essen- tially produced the same two clusters of leadership behavior from literally thousands of items (Exhibit 12.2).43
One cluster, called task-oriented leadership, includes behaviors that define and structure work roles. Task-oriented leaders assign employees to specific tasks, set goals and deadlines, clarify work duties and procedures, define work procedures, and plan work activities. The other cluster represents people-oriented leadership. This cluster includes behaviors such as listening to employees for their opinions and ideas, creating a pleasant physical work environment, showing interest in staff, complimenting and recognizing employees for their effort, and showing consideration of employee needs.
These early studies tried to find out whether effective managers are more task-oriented or more people-oriented. This proved to be a difficult question to answer, because each style has its advantages and disadvantages. In fact, recent evidence suggests that effective leaders rely on both styles, but in different ways.44 When leaders apply high levels of peo- ple-oriented leadership behavior, their employees tend to have more positive attitudes and lower absenteeism, grievances, and turnover. One study reported specifically that followers have few stress symptoms when leaders show empathy toward employees.45 When leaders exhibit more task-oriented leadership, their employees tend to have higher job perfor- mance. Not surprisingly, employees generally prefer people-oriented bosses and form neg- ative attitudes toward bosses who are mostly task-oriented. However, task-oriented leadership is also appreciated to some degree. For example, university students value task-oriented instructors, because they want clear objectives and well-prepared lectures that abide by the unit’s objectives.46
SERVANT LEADERSHIP Servant leadership is an extension or variation of people-oriented leadership, because it defines leadership as serving others in ways that assist their need fulfillment and personal development and growth.47 Servant leaders ask, “How can I help you?” rather than ex- pecting employees to serve them. People who epitomize servant leadership have been de- scribed as selfless, egalitarian, humble, nurturing, empathetic, and ethical coaches. The main objective of servant leadership is to help other stakeholders fulfill their needs and potential, particularly “to become healthier, wiser, freer, more autonomous, more likely themselves to become servants.”48
Servant leadership research suffers from ambiguous and conflicting definitions, but writers agree on a few features.49 First, servant leaders have a natural desire or “calling” to serve others. This natural desire is a deep commitment to the growth of others for that purpose alone. It goes beyond the leader’s role obligation to help others and is not merely an instrument to
• Assign work and clarify responsibilities • Show interest in others as people
• Set goals and deadlines • Listen to employees
• Evaluate and provide feedback on work quality • Make the workplace more pleasant
• Establish well-defined best work procedures • Compliment employees for their work
• Plan future work activities • Are considerate of employee needs
LEADERS ARE PEOPLE-ORIENTED LEADERS ARE TASK-ORIENTED WHEN THEY... WHEN THEY...
EXHIBIT 12.2
Task- and People-Oriented Leadership Styles
servant leadership
The view that leaders serve followers, rather than vice versa; leaders help employees fulfill their needs and are coaches, stewards, and facilitators of employee development.
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Chapter Twelve Leadership in Organizational Settings 351
PATH-GOAL LEADERSHIP THEORY The servant leadership model implies that leaders should be servants in all circumstances. However, the broader literature on task-oriented and people-oriented leadership concluded that the best style is contingent on the situation.52 This “it depends” view is more consistent with the contingency anchor of organizational behavior discussed in Chapter 1. In other words, the most appropriate leadership style depends on the characteristics of the employ- ees, work setting, the leader–follower relationship, and other factors.
Path-goal leadership theory is the dominant model that applies this contingency ap- proach to managerial leadership. The main premise of path-goal theory is that effective leaders choose one or more leadership styles to influence employee expectations (their pre- ferred path) regarding the achievement of desired results (their work-related goals), as well as perceived satisfaction with those results (outcome valences). In other words, path-goal the- ory recognizes that leadership is an important influence in the expectancy theory of motiva- tion (Chapter 5) and its underlying formula, subjective expected utility (Chapter 7).53 Leaders clarify the link between employee behaviors and outcomes, influence the value of those outcomes, provide a work environment to facilitate goal accomplishment, and so forth.54
achieve company objectives. Second, servant leaders maintain a relationship with others that is humble, egalitarian, and accept- ing. Servant leaders do not view leadership as a position of power. Rather, they serve without drawing attention to themselves, with- out evoking superior status, and without being judgmental about others or defensive of criticisms received. Third, servant leaders anchor their decisions and actions in ethical principles and prac- tices. They display sensitivity to and enactment of moral values and are not swayed by social pressures or expectations to devi- ate from those values. In this respect, servant leadership relies heavily on the idea of authentic leadership that we discuss later in this chapter.
Servant leadership was introduced four decades ago and has since enjoyed a steady following, particularly among practitioners and religious leaders. Scholarly interest in this topic has bloomed in the past few years, but the concept still faces a number of con- ceptual hurdles. Although servant leadership writers generally agree on the three features we described earlier, many have in- cluded other characteristics that lack agreement and might con- found the concept with its predictors and outcomes. Still, the notion of leader as servant has considerable currency and for many centuries has been embedded in the principles of major religions. One recent study also found that companies have higher performance (return on assets) when their chief executive officer exhibits servant leadership behaviors.51
Visit connect.mcgrawhill.com for activities and test questions to help you learn about path-goal leadership theory.
path-goal leadership theory
A leadership theory stating that effective leaders choose the most appropriate leadership style(s), depending on the employee and situation, to influence employee expectations about desired results and their positive outcomes.
LO 12-4
Servant leadership has recently gained the attention of organizational behavior scholars, but it has been ingrained in military leadership for decades. “If you look at our Army Values, the center of that is selfless service,” explains Lt. Gen. Daniel Allyn, commanding general of the XVIIIth Airborne Corps of Fort Bragg, North Carolina. “The idea of servant leadership is you put others before yourself. That, to me, is an inherent quality of leadership, and our Warrior Ethos also speaks to it in ‘I’ll never leave a fallen comrade.’ That implies that we’re going to do all we can to ensure that we’re always looking after the needs of our Soldiers.”50
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352 Part Three Team Processes
Path-Goal Leadership Styles Exhibit 12.3 presents a model of the path-goal theory of leadership. This model specifically highlights four leadership styles and several contingency factors leading to three indicators of leader effectiveness. The four leadership styles are:55
• Directive. Directive leadership is the same as task-oriented leadership. This leadership style consists of clarifying behaviors that provide a psychological structure for subor- dinates. This includes clarifying performance goals, the means to reach those goals, and the standards against which performance will be judged. It also includes the judicious use of rewards and disciplinary actions.
• Supportive. Supportive leadership is the same as people-oriented leadership. This style provides psychological support for subordinates. The leader is friendly and approachable; makes the work more pleasant; treats employees with equal respect; and shows concern for the status, needs, and well-being of employees.
• Participative. Participative leadership behaviors encourage and facilitate subordinate involvement in decisions beyond their normal work activities. The leader consults with employees, asks for their suggestions, and takes these ideas into serious consid- eration before making a decision. Participative leadership involves employees in decisions (see Chapter 7).
• Achievement-oriented. This leadership style emphasizes behaviors that encourage em- ployees to reach their peak performance. The leader sets challenging goals, expects em- ployees to perform at their highest level, continuously seeks improvement in employee performance, and shows a high degree of confidence that employees will assume re- sponsibility and accomplish challenging goals. Achievement-oriented leadership applies goal-setting theory as well as positive expectations in a self-fulfilling prophecy.
The path-goal model contends that effective leaders are capable of selecting the most appropriate behavioral style (or styles) for each situation. Also, leaders often use two or more styles at the same time, if these styles are appropriate for the circumstances.
What is your preferred managerial leadership style? Visit connect. mcgrawhill.com to assess your tendency to use one of three leadership styles.
Employee contingencies
• Skills/experience
• Locus of control
Environmental contingencies
• Task structure
• Team dynamics
Leader behaviors
• Directive
• Supportive
• Participative
• Achievement-oriented
Leader effectiveness
• Employee motivation
• Employee satisfaction
• Leader acceptance
EXHIBIT 12.3
Path-Goal Leadership Theory
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Chapter Twelve Leadership in Organizational Settings 353
Contingencies of Path-Goal Theory As a contingency theory, path-goal theory states that each of the four leadership styles will be effective in some situations but not in others. The path-goal leadership model specifies two sets of situational variables that mod- erate the relationship between a leader’s style and effectiveness: (1) employee characteristics and (2) characteristics of the employee’s work environment. Several contingencies have already been studied within the path-goal framework, and the model is open to including more variables in the future.56 However, only four contingencies are reviewed here.
• Skill and experience. A combination of directive and supportive leadership is best for employees who are (or perceive themselves to be) inexperienced and unskilled.57 Directive leadership gives subordinates information about how to accomplish the task, whereas supportive leadership helps them cope with the uncertainties of unfamiliar work situations. Directive leadership is detrimental when employees are skilled and experienced, because it introduces too much supervisory control.
• Locus of control. People with an internal locus of control believe that they have control over their work environment (see Chapter 3). Consequently, these employees prefer participative and achievement-oriented leadership styles and may become frustrated with a directive style. In contrast, people with an external locus of control believe that their performance is due more to luck and fate, so they tend to be more satisfied with directive and supportive leadership.
• Task structure. Leaders should adopt the directive style when the task is nonroutine, because this style minimizes the role ambiguity that tends to occur in complex work situations (particularly for inexperienced employees).58 The directive style is ineffec- tive when employees have routine and simple tasks, because the manager’s guidance serves no purpose and may be viewed as unnecessarily close control. Employees in highly routine and simple jobs may require supportive leadership to help them cope with the tedious nature of the work and lack of control over the pace of work. Partic- ipative leadership is preferred for employees performing nonroutine tasks, because the lack of rules and procedures gives them more discretion to achieve challenging goals. The participative style is ineffective for employees in routine tasks, because they lack discretion over their work.
• Team dynamics. Cohesive teams with performance-oriented norms act as a substitute for most leader interventions. High team cohesion substitutes for supportive leader- ship, whereas performance-oriented team norms substitute for directive and possibly achievement-oriented leadership. Thus, when team cohesion is low, leaders should use a supportive style. Leaders should apply a directive style to counteract team norms that oppose the team’s formal objectives. For example, the team leader may need to use legitimate power if team members have developed a norm to “take it easy” rather than get a project completed on time.
Path-goal theory’s contingency approach suggests that effective leaders must be both insightful and flexible.59 They must be able to adapt their behaviors and styles to the imme- diate situation. This isn’t easy to do, however. Leaders typically have a preferred style. It takes considerable effort for leaders to choose and enact different styles to match the situation. Leaders must have high emotional intelligence so that they can diagnose the circumstances and match their behaviors accordingly.
Evaluating Path-Goal Theory Path-goal theory has received more research support than other contingency leadership models. In fact, one study reported that path-goal theory explained more about effective leadership than did the transformational leadership model.60 This stronger effect is likely because most managers spend more of their time engaging in managerial rather than transformational leadership.61 Even so, support for the path-goal model is far from ideal. A few contingencies (e.g., task structure) have limited research sup- port. Other contingencies and leadership styles in the path-goal leadership model have not
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354 Part Three Team Processes
been investigated at all.62 Another concern is that as path-goal theory expands, the model may become too complex for practical use. Few people would be able to remember all the contingencies and the appropriate leadership styles for those contingencies. In spite of these limitations, path-goal theory remains a relatively robust managerial leadership theory.
OTHER MANAGERIAL LEADERSHIP THEORIES Several other managerial leadership theories have developed over the years. Some overlap with the path-goal model’s leadership styles, but most use simpler and more abstract contin- gencies. We briefly mention only two here, because of their popularity and historical signif- icance to the field.
Situational Leadership Theory One of the most popular managerial leadership theories among practitioners is the situational leadership theory (SLT), developed by Paul Hersey and Ken Blanchard.64 The SLT suggests that effective leaders vary their style with the varying ability and motivation (or commitment) of followers. The most recent version uses four labels to describe followers, such as “enthusiastic beginner” (low ability, high motiva- tion) and “disillusioned learner” (moderate ability and low motivation).
The situational leadership model also identifies four leadership styles—telling, selling, participating, and delegating—that Hersey and Blanchard distinguish by the amount of task-oriented and people-oriented behavior provided. For example, “telling” has high task be- havior and low supportive behavior. The situational leadership model has four quadrants, and each quadrant shows the leadership style that is most appropriate in different circumstances.
Despite its popularity, several studies and at least three reviews have concluded that the situational leadership model lacks empirical support.65 Only one part of the model apparently works, namely, that leaders should use “telling” (i.e., task-oriented style) when employees lack motivation and ability. This relationship is also documented in path-goal theory. The model’s elegant simplicity is attractive and entertaining, but most parts don’t represent reality very well.
Mexico
Russia
India
Norway
USA
Malaysia
GLOBAL
China
UK
Indonesia
Germany
France
Italy
10% 20% 30% 40% 50% 60%0% 10% 20%0%
aly
nce
aly
any
nce
sia
an
UK
sia
ina
UK
AL
i
sia
AL
SA
i
way
SA
dia
ico
sia
di
29%
31%
33%
35%
37%
38%
39%
42%
45%
47%
51%
55%
20%
Percentage of employees surveyed in selected countries who indicate that they are satisfied with their managers’ leadership style. Data were collected for Kelly Services in 2012 from more than 168,000 people in 30 countries. The global average includes respondents from all 30 countries, not just those shown in this chart.
How Satisfied Are Employees with Their Managers’
Leadership Styles?63
situational leadership theory
A commercially popular but poorly supported leadership model stating that effective leaders vary their style (telling, selling, participating, delegating) according to the motivation and ability of followers.
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Chapter Twelve Leadership in Organizational Settings 355
Fiedler’s Contingency Model Fiedler’s contingency model, developed by Fred Fiedler and his associates, is the earliest managerial leadership theory that adopted the con- tingency approach.66 According to this model, leader effectiveness depends on whether the person’s natural leadership style is appropriately matched to the situation. The theory exam- ines two leadership styles that correspond to the previously described people-oriented and task-oriented styles. Unfortunately, Fiedler’s model relies on a questionnaire that does not measure either leadership style very well.
Fiedler’s model suggests that the best leadership style depends on the level of situational control, that is, the degree of power and influence that the leader possesses in a particular situation. Situational control is affected by three factors, in the following order of impor- tance: leader–member relations, task structure, and position power.67 Leader–member rela- tions refers to how much employees trust and respect the leader and are willing to follow his or her guidance. Task structure indicates the clarity or ambiguity of operating procedures. Position power is the extent to which the leader possesses legitimate, reward, and coercive power over subordinates. These three contingencies form the eight possible combinations of situation favorableness from the leader’s viewpoint. Good leader–member relations, high task structure, and strong position power create the most favorable situation for the leader, be- cause he or she has the most power and influence in these conditions.
Fiedler’s theory has not survived research and logical scrutiny, mainly due to the flaws in its leadership style scale, its limited focus on only two leadership styles, and its creation of a single contingency variable (leader–member relations) based on an unexplainable arrange- ment of three situational factors in a hierarchy.68 However, Fiedler’s model makes two lasting contributions to leadership knowledge. First, it recognizes the importance of the leader’s power in determining the best leadership style. Leader power is not explicit in other managerial leadership models.
Second, contrary to the assumptions of most leadership theories, Fiedler argues that leaders might not be able to change their style easily to fit the situation. Instead, they tend to rely mainly on one style that is most consistent with their personality and values. Leaders with a high agreeableness personality and benevolence values tend to prefer supportive leadership, for example; leaders with a high conscientiousness personality and achievement values feel more comfortable with the directive style of leadership.69 More recently scholars have proposed that leadership styles are “hardwired” more than most contingency leadership theories assume.70 Leaders might be able to alter their style temporarily, but they tend to rely mainly on one style that is most consistent with their personality and values.
LEADERSHIP SUBSTITUTES So far, we have looked at managerial leadership theories that recommend using different leadership styles in various situations. But one theory, called leadership substitutes, identi- fies conditions that either limit the leader’s ability to influence subordinates or make a par- ticular leadership style unnecessary. The literature identifies several conditions that possibly substitute for task-oriented or people-oriented leadership. Task-oriented leadership might be less important when performance-based reward systems keep employees directed toward organizational goals. Similarly, increasing employee skill and experience might reduce the need for task-oriented leadership. This proposition is consistent with path-goal leader-
ship theory, which states that directive leadership is unnecessary—and may be detrimental—when employees are skilled or experienced.71
Some research suggests that effective leaders help team members learn to lead themselves through leadership sub- stitutes; in other words, coworkers substitute for leadership in high-involvement team structures.72 Coworkers instruct new employees, thereby providing directive leadership. They also provide social support, which reduces stress
Fiedler’s contingency model
A leadership model stating that leader effectiveness depends on whether the person’s natural leadership style is appropriately matched to the situation (the level of situational control).
leadership substitutes
A theory identifying conditions that either limit a leader’s ability to influence subordinates or make a particular leadership style unnecessary.
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356 Part Three Team Processes
among fellow employees. Teams with norms that support organizational goals may substi- tute for achievement-oriented leadership, because employees encourage (or pressure) co- workers to stretch their performance levels.73
The leadership substitutes model has intuitive appeal, but the evidence so far is mixed. Some studies show that a few substitutes do replace the need for task- or people-oriented leadership, but others do not. The difficulties of statistically testing for leadership substitutes may account for some problems, but a few writers contend that the limited support is evi- dence that leadership plays a critical role, regardless of the situation.74 At this point, we can conclude that leadership substitutes might reduce the need for leaders, but they do not completely replace leaders in these situations.
Do leaders make a difference? Visit connect.mcgrawhill.com to assess your beliefs about the influence of leaders.
Implicit Leadership Perspective The transformational and managerial leadership perspectives make the basic assumption that leaders “make a difference.” Certainly, there is evidence that leaders influence the performance of their departments and organizations. However, leadership also involves followers’ perceptions of the characteristics and attributions of people in formal leadership positions. This perceptual perspective of leadership, called implicit leadership theory, has two components: leader prototypes and the romance or attribution of leadership.75
PROTOTYPES OF EFFECTIVE LEADERS One aspect of implicit leadership theory states that everyone has leadership prototypes— preconceived beliefs about the features and behaviors of effective leaders.76 These proto- types, which develop through socialization within the family and society, shape the follower’s expectations and acceptance of others as leaders, and this in turn affects the willingness to remain a follower. Leadership prototypes not only support a person’s role as leader; they also influence our perception of the leader’s effectiveness. In other words, people are more likely to believe a leader is effective when he or she looks like and acts consistently with their pro- totype of a leader.77
Why does this prototype comparison process occur? People want to trust their leader before they are willing to serve as followers, yet the leader’s actual effectiveness usually isn’t known for several months or possibly years. The prototype comparison process is a quick (though faulty) way of estimating the leader’s effectiveness.
THE ROMANCE OF LEADERSHIP Along with relying on implicit prototypes of effective leaders, followers tend to distort their perception of the influence that leaders have on the organization’s success. This “romance of leadership” effect exists because, in most cultures, people want to believe that leaders make a difference.
There are two basic reasons why people inflate their perceptions of the leader’s influence over the environment.79 First, leadership is a useful way for us to simplify life events. It is easier to explain organizational successes and failures in terms of the leader’s ability than by analyzing a complex array of other forces. Second, there is a strong tendency in the United States and other Western cultures to believe that life events are generated more by people
implicit leadership theory
A theory stating that people evaluate a leader’s effectiveness in terms of how well that person fits preconceived beliefs about the features and behaviors of effective leaders (leadership prototypes) and that people tend to inflate the influence of leaders on organizational events.
LO 12-5
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Chapter Twelve Leadership in Organizational Settings 357
than by uncontrollable natural forces.80 This illusion of control is satisfied by believing that events result from the rational actions of leaders. In other words, employees feel better believing that leaders make a difference, so they actively look for evidence that this is so.
One way that followers support their perceptions that leaders make a difference is through fundamental attribution error (see Chapter 3). Re- search has found that (at least in Western cultures) leaders are given credit or blame for the company’s success or failure because employees do not readily see the external forces that also influence these events. Leaders reinforce this belief by taking credit for organizational successes.81
The implicit leadership perspective provides valuable advice to improve leadership acceptance. It highlights that leadership is a perception of followers as much as the actual behaviors and formal roles of people calling themselves leaders. Potential leaders must be sensitive to this fact, understand what fol-
lowers expect, and act accordingly. Individuals who do not naturally fit leadership prototypes need to provide more direct evidence of their effectiveness as leaders.
Competency Perspective of Leadership Since the beginning of recorded civilization, people have been interested in the personal characteristics that distinguish great leaders from the rest of us.82 One groundbreaking re- view in the late 1940s concluded that no consistent list of traits could be distilled from previous research. This conclusion was revised a decade later, suggesting that a few traits are associated with effective leaders.83 These nonsignificant findings caused many scholars to give up their search for the personal characteristics of effective leaders.
Over the past two decades, leadership experts have returned to the notion that effective leaders might possess specific personal characteristics.84 The earlier research was apparently plagued by methodological problems, a lack of theoretical foundation, and inconsistent definitions of leadership. The emerging work has identified several leadership competencies, that is, skills, knowledge, aptitudes, and other personal characteristics that lead to superior performance. The main categories of leadership competencies are listed in Exhibit 12.4 and described below:85
• Personality. Most of the Big Five personality dimensions (see Chapter 2) are associ- ated with effective leadership to some extent, but the strongest predictors are high levels of extroversion (outgoing, talkative, sociable, and assertive) and conscientious- ness (careful, dependable, and self-disciplined). With high extroversion, effective leaders are comfortable having an influential role in social settings. With higher conscientiousness, effective leaders set higher goals for themselves (and others), are more motivated to achieve those goals, and have a sense of duty.
• Self-concept. Successful leaders have a complex, internally consistent, and clear self- concept as a leader (see Chapter 3). This “leader identity” also includes a positive self- evaluation, including high self-esteem, self-efficacy, and internal locus of control.86
As the CEO of a successful company (Semco SA) and the author of best-selling business books, Ricardo Semler is a giant among corporate leaders in South America. Yet he warns of the “romance of leadership” problems that can occur when employees are blinded by charismatic leadership. “People will naturally create and nurture a charismatic figure. The charismatic figure, on the other hand, feeds this,” Semler explains. “The people at Semco don’t look and act like me. They are not yes- men by any means. . . . [Yet] they credit me with successes that are not my own, and they don’t debit me my mistakes.”78
LO 12-6
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358 Part Three Team Processes
While many people in leadership positions default to daily managerial leadership and define themselves as managers, effective leaders view themselves as both transforma- tional and managerial and are confident with both of these self-views.87
• Leadership motivation. Effective leaders don’t just see themselves as leaders. They are also motivated to lead others. They have a strong need for socialized power, meaning that they want power to lead others in accomplishing organizational objectives and similar good deeds. This contrasts with a need for personalized power, which is the desire to have power for personal gain or for the thrill one might experience from wielding power over others (see Chapter 5).88 Leadership motivation is also neces- sary because, even in collegial firms, leaders are in contests for positions further up the hierarchy. Effective leaders thrive rather than wither in the face of this competition.89
• Drive. Related to their high conscientiousness and positive self-concept, successful leaders have a moderately high need for achievement (see Chapter 5). This drive rep- resents the inner motivation that leaders possess to pursue their goals and encourage others to move forward with theirs. Drive inspires inquisitiveness, an action orienta- tion, and measured boldness to take the organization or team into uncharted waters.
• Integrity. Integrity involves truthfulness and consistency of words and actions, qualities that are related to honesty and ethical conduct. Leaders have a high moral capacity to judge dilemmas using sound values and to act accordingly. Notice that integrity is ultimately based on the leader’s values, which provide an anchor for consistency. Several large-scale studies have reported that integrity and honesty are the most important characteristics of effective leaders.90 Unfortunately, recent surveys also report that employees don’t believe their leaders have integrity and consequently don’t trust those leaders.
• Knowledge of the business. Effective leaders possess tacit and explicit knowledge of the business environment in which they operate, including subtle indications of emerging trends. Knowledge of the business also includes a good understanding of how their organization works effectively.
LEADERSHIP COMPETENCY DESCRIPTION
EXHIBIT 12.4 Competencies of Effective Leaders
Personality
Self-concept
Drive
Integrity
Leadership motivation
Knowledge of the business
Cognitive and practical intelligence
Emotional intelligence
The leader’s higher levels of extroversion (outgoing, talkative, sociable, and assertive) and conscien- tiousness (careful, dependable, and self-disciplined).
The leader’s self-beliefs and positive self-evaluation of his or her own leadership skills and ability to achieve objectives.
The leader’s inner motivation to pursue goals.
The leader’s truthfulness and tendency to translate words into deeds.
The leader’s need for socialized power to accomplish team or organizational goals.
The leader’s tacit and explicit knowledge about the company’s environment, enabling him or her to make more intuitive decisions.
The leader’s above-average cognitive ability to process information (cognitive intelligence) and solve real-world problems by adapting to, shaping, or selecting appropriate environments (practical intelligence).
The leader’s ability to monitor his or her own and others’ emotions, discriminate among them, and use the information to guide his or her thoughts and actions.
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Chapter Twelve Leadership in Organizational Settings 359
• Cognitive and practical intelligence. Leaders have above-average cognitive ability to process enormous amounts of information. Leaders aren’t necessarily geniuses; rather, they have a superior ability to analyze a variety of complex alternatives and opportunities. Furthermore, leaders have practical intelligence. Cognitive intelligence is assessed by performance on clearly defined problems with sufficient information and usually one best answer. In contrast, practical intelligence is assessed by perfor- mance in real-world settings, where problems are poorly defined, information is missing, and more than one solution may be plausible.91
• Emotional intelligence. Effective leaders have a high level of emotional intelligence.92 They are able to recognize and regulate emotions in themselves and in other people (see Chapter 4).
AUTHENTIC LEADERSHIP A few paragraphs ago, we said that successful leaders have a complex, internally consistent, and clear self-concept as a leader and that they possess a strong positive self-evaluation. These characteristics lay the foundation for authentic leadership, which refers to how well leaders are aware of, feel comfortable with, and act consistently with their self-concept.93 Authenticity is knowing yourself and being yourself (Exhibit 12.5). Leaders learn more about their personality, values, thoughts, and habits by reflecting on various situations and personal experiences. They also improve this self-awareness by receiving feedback from trusted people inside and outside the organization. Both self-reflection and receptivity to feedback require high levels of emotional intelligence.
As people learn more about themselves, they gain a greater understanding of their inner purpose, which generates a long-term passion for achieving something worthwhile for the organization or society. Some leadership experts suggest that this inner purpose emerges from a life story, typically a transformative event or experience earlier in life that provides guidance for their later career and energy.94
Authentic leadership is more than self-awareness; it also involves behaving in ways that are consistent with that self-concept rather than pretending to be someone else. To be themselves, great leaders regulate their decisions and behavior in several ways. First, they develop their own style and, where appropriate, move into positions where that style will be the most effective. Although effective leaders adapt their behavior to the situation to some extent, they invariably understand and rely on decision methods and interpersonal styles that feel most comfortable to them.
Second, effective leaders continually think about and consistently apply their stable hierarchy of personal values to those decisions and behaviors. Leaders face many pressures and temptations, such as achieving short-term stock price targets at the cost of long-term profitability. Experts note that authentic leaders demonstrate self-discipline by remaining anchored to their values. Third, leaders maintain consistency around their self-concept by having a strong, positive core self-evaluation. They have high self-esteem and self-efficacy, as well as an internal locus of control (Chapter 3).
EXHIBIT 12.5
Authentic Leadership
authentic leadership
The view that effective leaders need to be aware of, feel comfortable with, and act consistently with their values, personality, and self-concept.
Know yourself
• Engage in self-reflection
• Receive feedback from trusted sources
• Understand your life story
Be yourself
• Develop your own style
• Apply your values
• Maintain a positive core self-evaluation
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COMPETENCY PERSPECTIVE LIMITATIONS AND PRACTICAL IMPLICATIONS Personality, experience, self-concept, and other personal characteristics af- fect a person’s propensity to be an effective leader to some extent. Still, the competency perspective of leadership has a few limitations.103 First, it as- sumes that all effective leaders have the same personal characteristics that are equally important in all situations. This is probably a false assump- tion; leadership is far too complex to have a universal list of traits that
apply to every condition. Some competencies might not be important all the time. Second, alternative combinations of competencies may be equally successful; two people with different sets of competencies might be equally good leaders. Third, the competency perspective views leadership as something within a person, yet experts emphasize that leadership is relational. People are effective leaders because of their favorable relation- ships with followers, so effective leaders cannot be identified without considering the quality of these relationships.104
Also remember from our previous discussion that, in the short term, followers tend to define effective or ineffective leaders based on their personal characteristics rather than whether the leader actually makes a difference to the organization’s success. People who ex- hibit self-confidence, extroversion, and other traits are called leaders because they fit the widely held prototype of an effective leader. Alternatively, if someone is successful, observers might assign several nonobservable personal characteristics to them, such as intelligence, confidence, and drive. In short, the link between personal characteristics and effective lead- ership is muddied by several perceptual distortions.
One important final point: The competency perspective of leadership does not necessar- ily imply that leadership is a talent acquired at birth, rather than developed throughout life. On the contrary, competencies indicate only leadership potential, not leadership perfor- mance. People with these characteristics become effective leaders only after they have devel- oped and mastered the necessary leadership behaviors. People with somewhat lower leadership competencies may become very effective leaders because they have worked harder to apply their lower potential more fully.
Cross-Cultural and Gender Issues in Leadership Along with the four perspectives of leadership presented throughout this chapter, cultural values and practices affect what leaders do. Culture shapes the leader’s values and norms, which influence his or her decisions and actions. Cultural values also shape the expectations that followers have of their leaders. An executive who acts inconsistently with cultural expec- tations is more likely to be perceived as an ineffective leader. Furthermore, leaders who devi- ate from those values may experience various forms of influence to get them to conform to the leadership norms and expectations of the society. In other words, implicit leadership
LO 12-7
PostNL, the Netherlands-based mail delivery services firm, builds a stronger organization through leaders who exhibit “honesty, authentic leadership, and truly connecting with staff.” PostNL CEO Herna Verhagen suggests that authenticity is intrinsic in effective leaders. “You cannot make someone be authentic,” suggests Verhagen. “What you can do as a company is emphasize that authentic leadership is key and explain what it entails.” Furthermore, she believes that authentic leadership requires a “secure base,” which includes taking pride in your company, team, boss, and yourself.95
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Chapter Twelve Leadership in Organizational Settings 361
theory, described in a previous section of this chapter, explains differences in leadership practices across cultures.
Over the past several years, 150 researchers from dozens of countries have worked to- gether on Project GLOBE (Global Leadership and Organizational Behavior Effectiveness) to identify the effects of cultural values on leadership.105 The project organized countries into 10 regional clusters, of which the United States, Great Britain, and similar countries are grouped into the “Anglo” cluster. The results of this massive investigation suggest that some features of leadership are universal and some differ across cultures. Specifically, the GLOBE project reports that “charismatic visionary” is a universally recognized concept and that middle managers around the world believe that it is characteristic of effective leaders. The charismatic visionary represents a cluster of concepts including visionary, inspirational, performance orientation, integrity, and decisiveness.106
In contrast, participative leadership is perceived as characteristic of effective leadership in low power distance cultures but less so in high power distance cultures. For instance, one study reported that Mexican employees expect managers to make decisions affecting their work. Mexico is a high power distance culture, so followers expect leaders to apply their authority rather than delegate their power most of the time.107 In summary, there are similarities and differences in the concept and preferred practice of leadership across cultures.
debating point SHOULD LEADERS REALLY BE AUTHENTIC ALL THE TIME?
According to popular business books and several scholarly arti- cles, authentic leadership is one of the core attributes of effective leaders. Authentic leaders know themselves and act in accor- dance with that self-concept. They live their personal values and find a leadership style that best matches their personality. Fur- thermore, authentic leaders have a sense of purpose, often devel- oped through a crisis or similar “crucible” event in their lives. It makes sense that leaders should be authentic. After all, as singer Liza Minnelli has often said: “I would rather be a first-rate version of myself than a second-rate version of anybody else.”96 In other words, leaders are better at acting out their natural beliefs and tendencies than by acting like someone else. Furthermore, authen- ticity results in consistency, which is a foundation of trust. So by being authentic, leaders are more likely to be trusted by followers.97
But should leaders always be themselves and act consistently with their beliefs and personality? Not necessarily, according to a few experts. The concept of authentic leadership seems to be at odds with well-established research that people are evaluated as more effective leaders when they have a high rather than low self-monitoring personality.98
High “self-monitors” quickly understand their social environ- ment and easily adapt their behavior to that environment. In other words, high self-monitors change their behavior to suit what others expect from them. In contrast, low self-monitors behave consistently with their personality and self-concept. They do not
change their beliefs, style, or behaviors across social contexts. On the contrary, they feel much more content with high congru- ence between who they are and what they do, even when their natural style does not fit the situation. Employees prefer an adaptive (i.e., high self-monitoring) leader, because they have preconceived prototypes of how leaders should act (implicit leadership theory, which we discussed earlier in this chapter).99 Authentic leaders are more likely to violate those prototypical expectations and, consequently, be viewed as less leader-like. The message is that leadership is a role that its in- cumbents are required to perform rather than to completely “act naturally.” Ironically, while applauding the virtues of authentic leadership, leadership guru Warren Bennis acknowledged that “leadership is a performance art.” His point was that leaders are best when they act naturally in that role, but the reality of any per- formance is that people can never be fully themselves.100
Furthermore, while being yourself is authentic, it may convey the image of being inflexible and insensitive.101 This problem was apparent to a management professor and consultant when re- cently working with a client. The executive’s staff followed a work process that was comfortable to the executive but not to many of her employees. When asked to consider adopting a process that was easier for her staff, the executive replied: “Look. This is just how I work.” The executive was authentic, but the inflexibility un- dermined employee performance and morale.102
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362 Part Three Team Processes
12-1 Define leadership and shared leadership. Leadership is defined as the ability to influence, motivate, and enable others to contribute to the effectiveness and success of the organizations of which they are members. Leaders use influ- ence to motivate followers and arrange the work environment so they do the job more effectively. Shared leadership views leadership as a role rather than a formal position, so employees throughout the organization act informally as leaders as the oc- casion arises. These situations include serving as champions for specific ideas or changes, as well as filling leadership roles where it is needed.
12-2 Describe the four elements of transformational lead- ership and explain why they are important for orga- nizational change.
Transformational leadership begins with a strategic vision, which is a positive representation of a future state that energizes and unifies employees. A vision is values-based, a distant goal, abstract, and meaningful to employees. Transformational lead- ers effectively communicate the vision by framing it around val- ues, showing sincerity and passion toward the vision, and using symbols, metaphors, and other vehicles that create richer mean- ing for the vision. Transformational leaders model the vision (walk the talk) and encourage employees to experiment with new behaviors and practices that are potentially more consistent with the visionary future state. They also build employee com- mitment to the vision through the preceding activities, as well as by celebrating milestones to the vision. Some transformational
leadership theories view charismatic leadership as an essential ingredient of transformational leadership. However, this view is inconsistent with the meaning of charisma and at odds with research on the dynamics and outcomes of charisma in leader– follower relationships.
12-3 Compare managerial leadership with transforma- tional leadership, and describe the features of task- oriented, people-oriented, and servant leadership.
Managerial leadership includes the daily activities that support and guide the performance and well-being of individual employees and the work unit to achieve current objectives and practices. Transformational and managerial leadership are dependent on each other, but they differ in their assumptions of stability versus change and their micro versus macro focus. Task-oriented behaviors include assigning employees to spe- cific tasks, clarifying their work duties and procedures, ensuring they follow company rules, and pushing them to reach their per- formance capacity. People-oriented behaviors include showing mutual trust and respect for subordinates, demonstrating a gen- uine concern for their needs, and having a desire to look out for their welfare. Servant leadership defines leadership as serving others to sup- port their need fulfillment and personal development and growth. Servant leaders have a natural desire or “calling” to serve others. They maintain a relationship with others that is humble, egalitarian, and accepting. Servant leaders also anchor their deci- sions and actions in ethical principles and practices.
chapter summary
GENDER AND LEADERSHIP Studies in field settings have generally found that male and female leaders do not differ in their levels of task-oriented or people-oriented leadership. The main explanation is that real-world jobs require similar behavior from male and female job incumbents.108 How- ever, women adopt a participative leadership style more readily than their male counter- parts. One possible reason is that, compared with boys, girls are often raised to be more egalitarian and less status-oriented, which is consistent with being participative. There is also some evidence that women have somewhat better interpersonal skills than men, and this translates into their relatively greater use of the participative leadership style. A third explanation is that subordinates, on the basis of their own gender stereotypes, expect female leaders to be more participative, so female leaders comply with follower expecta- tions to some extent.
Surveys report that women are rated higher than men on the emerging leadership quali- ties of coaching, teamwork, and empowering employees.109 Yet research also suggests that women are evaluated negatively when they try to apply the full range of leadership styles, particularly more directive and autocratic approaches. Thus, ironically, women may be well suited to contemporary leadership roles, yet they often continue to face limitations of lead- ership through the gender stereotypes and prototypes of leaders that are held by followers.110 Overall, both male and female leaders must be sensitive to the fact that followers have expec- tations about how leaders should act, and negative evaluations may go to leaders who devi- ate from those expectations.
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critical thinking questions 1. Why is it important for top executives to value and support
shared leadership? 2. Transformational leadership is the most popular perspective
of leadership. However, it is far from perfect. Discuss the limitations of transformational leadership.
3. This chapter distinguished charismatic leadership from transformational leadership. Yet charisma is identified by most employees and managers as a characteristic of effective leaders. Why is charisma commonly related to leadership? In your opinion, are the best leaders charismatic? Why or why not?
4. Consider your favorite teacher. What people-oriented and task-oriented leadership behaviors did he or she use effec- tively? In general, do you think students prefer an instructor who is more people-oriented or task-oriented? Explain your preference.
5. Your employees are skilled and experienced customer service representatives who perform nonroutine tasks, such as
solving unique customer problems or meeting special needs with the company’s equipment. Use path-goal theory to identify the most appropriate leadership style(s) you should use in this situation. Be sure to fully explain your answer, and discuss why other styles are inappropriate.
6. Identify a current political leader (e.g., president, governor, mayor) and his or her recent accomplishments. Now, using the implicit leadership perspective, think of ways that these accomplishments of the leader may be overstated. In other words, explain why they may be due to factors other than the leader.
7. Find two newspaper ads for management or executive positions. What leadership competencies are mentioned in these ads? If you were on the selection panel, what meth- ods would you use to identify these competencies in job applicants?
8. How do you think emotional intelligence, cognitive and practical intelligence influence authentic leadership?
authentic leadership, p. 359 Fiedler’s contingency model, p. 355 implicit leadership theory, p. 356 leadership, p. 342
leadership substitutes, p. 355 managerial leadership, p. 348 path-goal leadership theory, p. 351 servant leadership, p. 350
shared leadership, p. 343 situational leadership theory, p. 354 transformational leadership, p. 344
key terms
12-4 Discuss the elements of path-goal theory, Fiedler’s contingency model, and leadership substitutes.
The path-goal theory of leadership takes the view that effective managerial leadership involves diagnosing the situation and using the most appropriate style for it. The core model identifies four leadership styles—directive, supportive, participative, and achievement-oriented—and several contingencies related to the characteristics of the employee and of the situation. Two other contingency leadership theories include the situa- tional leadership theory and Fiedler’s contingency theory. Re- search support is quite weak for both theories. However, a lasting element of Fiedler’s theory is the idea that leaders have natural styles and, consequently, that companies need to change the leaders’ environments to suit their style. Leadership substitutes theory identifies contingencies that either limit the leader’s abil- ity to influence subordinates or make a particular leadership style unnecessary.
12-5 Describe the two components of the implicit leader- ship perspective.
According to the implicit leadership perspective, people have leadership prototypes, which they use to evaluate the leader’s ef- fectiveness. Furthermore, people form a romance of leadership; they want to believe that leaders make a difference, so they
engage in fundamental attribution error and other perceptual distortions to support this belief in the leader’s impact.
12-6 Identify eight competencies associated with effective leaders and describe authentic leadership.
The competency perspective identifies the characteristics of ef- fective leaders. Recent writing suggests that leaders have specific personality characteristics, positive self-concept, drive, integrity, leadership motivation, knowledge of the business, cognitive and practical intelligence, and emotional intelligence. Authentic leadership refers to how well leaders are aware of, feel comfort- able with, and act consistently with their self-concept. This con- cept consists mainly of two parts: self-awareness and engaging in behavior that is consistent with one’s self-concept.
12-7 Discuss cultural and gender similarities and differ- ences in leadership.
Cultural values influence the leader’s personal values, which in turn influence his or her leadership practices. Women generally do not differ from men in the degree of people-oriented or task-oriented leadership. However, female leaders more often adopt a participative style. Research also suggests that people evaluate female leaders on the basis of gender stereotypes, which may result in higher or lower ratings.
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CASE STUDY: A WINDOW ON LIFE By Steven L. McShane, The University of Western Australia
For Gilbert LaCrosse, there is nothing quite as beautiful as a handcrafted wood-framed window. LaCrosse’s passion for windows goes back to his youth in Eau Claire, Wisconsin, where he learned how to make residential windows from an elderly carpenter. He learned about the characteristics of good wood, the best tools to use, and how to choose the best glass from local suppliers. LaCrosse apprenticed with the car- penter in his small workshop and, when the carpenter retired, was given the opportunity to operate the business himself. LaCrosse hired his own apprentice as he built up business in the local area. His small operation soon expanded as the quality of windows built by LaCrosse Industries, Inc. became better known. Within eight years, the company employed nearly 25 people, and the business had moved to larger facil- ities to accommodate the increased demand from Wisconsin. In these early years, LaCrosse spent most of his time in the production shop, teaching new apprentices the unique skills that he had mastered and applauding the journeymen for their accomplishments. He would constantly repeat the point that LaCrosse products had to be of the highest quality be- cause they gave families a “window on life.” After 15 years, LaCrosse Industries employed over 200 people. A profit-sharing program was introduced to give employees a financial reward for their contribution to the organization’s success. Due to the company’s expansion, headquarters had to be moved to another area of the city, but the founder never lost touch with the workforce. Although new apprentices were now taught entirely by the master carpenters and other craftspeople, LaCrosse would still chat with plant and office employees several times each week. When a second work shift was added, LaCrosse would show up during the evening break with coffee and boxes of donuts and discuss how the business was doing and how it became so successful through quality workmanship. Produc- tion employees enjoyed the times when he would gather them together to announce new contracts with developers from Chicago and New York. After each announcement, LaCrosse would thank everyone for making the business a success. They knew that LaCrosse quality had become a stan- dard of excellence in window manufacturing across the East- ern part of the country. It seemed that almost every time he visited, LaCrosse would repeat the now well-known phrase that LaCrosse products had to be of the highest quality because they pro- vided a window on life to so many families. Employees never grew tired of hearing this from the company founder.
However, it gained extra meaning when LaCrosse began posting photos of families looking through LaCrosse win- dows. At first, LaCrosse would personally visit developers and homeowners with a camera in hand. Later, as the “window on life” photos became known by developers and customers, people would send in photos of their own families looking through elegant front windows made by LaCrosse Industries. The company’s marketing staff began using this idea, as well as LaCrosse’s famous phrase, in their advertising. After one such marketing campaign, hundreds of photos were sent in by satisfied customers. Production and office employees took time after work to write personal letters of thanks to those who had submitted photos. As the company’s age reached the quarter-century mark, LaCrosse, now in his mid-fifties, realized that the organiza- tion’s success and survival depended on expansion to other parts of the United States. After consulting with employees, LaCrosse made the difficult decision to sell a majority share to Build-All Products, Inc., a conglomerate with interna- tional marketing expertise in building products. As part of the agreement, Build-All brought in a vice-president to over- see production operations while LaCrosse spent more time meeting with developers. LaCrosse would return to the plant and office at every opportunity, but often this would be only once a month. Rather than visiting the production plant, Jan Vlodoski, the new production vice-president, would rarely leave his office in the company’s downtown headquarters. Instead, production orders were sent to supervisors by memorandum. Although product quality had been a priority throughout the company’s history, less attention had been paid to inventory controls. Vlodoski introduced strict inventory guidelines and outlined procedures on using supplies for each shift. Goals were established for supervisors to meet specific inventory targets. Whereas employees previously could have tossed out several pieces of warped wood, they would now have to justify this action, usually in writing. Vlodoski also announced new procedures for purchas- ing production supplies. LaCrosse Industries had highly trained purchasing staff who worked closely with senior craftspeople when selecting suppliers, but Vlodoski wanted to bring in Build-All’s procedures. The new purchasing methods removed production leaders from the decision process and, in some cases, resulted in trade-offs that LaCrosse’s employees would not have made earlier. A few employees quit during this time, saying that they did not
9. You hear two people debating the merits of women as leaders. One person claims that women make better lead- ers than do men because women are more sensitive to their employees’ needs and involve them in organizational decisions. The other person counters that though these
leadership styles may be increasingly important, most women have trouble gaining acceptance as leaders when they face tough situations in which a more autocratic style is required. Discuss the accuracy of the comments made in this discussion.
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SELF-ASSESSMENT
DO LEADERS MAKE A DIFFERENCE? PURPOSE This assessment is designed to help you assess your beliefs about the influence of leaders.
INSTRUCTIONS Read each of the following statements and circle the response that best indicates your personal
belief about that statement. Then, use the scoring key in the Appendix to calculate the results for each leadership di- mension. After completing this assessment, be prepared to discuss in class the relevance and level of implicit leader- ship theory.
TEAM EXERCISE: LEADERSHIP DIAGNOSTIC ANALYSIS PURPOSE To help students learn about the different path- goal leadership styles and when to apply each style.
INSTRUCTIONS
Step 1: Students individually write down two incidents in which someone has been an effective manager or leader over them. The leader and situation might be from work, a sports team, a student work group, or any other setting where lead- ership might emerge. For example, students might describe how their supervisor in a summer job pushed them to reach higher performance goals than they would have done other- wise. Each incident should state the actual behaviors that the leader used, not just general statements (e.g., “My boss sat down with me and we agreed on specific targets and dead- lines, then he said several times over the next few weeks that I was capable of reaching those goals.”) Each incident requires only two or three sentences.
Step 2: After everyone has written their two incidents, the instructor will form small groups (typically between four or
five students). Each team will answer the following questions for each incident presented in that team:
1. Which path-goal theory leadership style(s)—directive, supportive, participative, or achievement-oriented—did the leader apply in this incident?
2. Ask the person who wrote the incident about the condi- tions that made this leadership style (or these styles, if more than one was used) appropriate in this situation. The team should list these contingency factors clearly and, where possible, connect them to the contingencies described in path-goal theory. (Note: The team might identify path-goal leadership contingencies that are not described in the book. These, too, should be noted and discussed.)
Step 3: After the teams have diagnosed the incidents, each team will describe to the entire class the most interesting inci- dents, as well as its diagnosis of that incident. Other teams will critique the diagnosis. Any leadership contingencies not men- tioned in the textbook should also be presented and discussed.
feel comfortable about producing a window that would not stand the test of time. However, there were few jobs for carpenters at the time, so most staff members remained with the company. After one year, inventory expenses decreased by approxi- mately 10 percent, but the number of defective windows re- turned by developers and wholesalers had increased markedly. Plant employees knew that the number of defective windows would increase as they used somewhat lower-quality materi- als to reduce inventory costs. However, they heard almost no news about the seriousness of the problem until Vlodoski sent a memo to all production staff saying that quality must be maintained. During the latter part of the first year under Vlodoski, a few employees had the opportunity to personally ask LaCrosse about the changes and express their concerns. LaCrosse apologized, saying due to his travels to new regions, he had not heard about the problems, and that he would look into the matter. Exactly 18 months after Build-All had become majority shareholder of LaCrosse Industries, LaCrosse called together five of the original staff in the plant. The company founder
looked pale and shaken as he said that Build-All’s actions were inconsistent with his vision of the company and, for the first time in his career, he did not know what to do. Build-All was not pleased with the arrangement either. Although LaCrosse windows still enjoyed a healthy market share and were competitive for the value, the company did not quite provide the minimum 18 percent return on equity that the conglomerate expected. LaCrosse asked his long- time companions for advice.
Discussion Questions
1. Identify the symptoms indicating that problems exist at LaCrosse Industries, Inc.
2. Use one or more leadership theories to analyze the underlying causes of the current problems at LaCrosse Industries. What other organizational behavior theories might also help explain some of the problems?
3. What should Gilbert LaCrosse do in this situation?
© Copyright 2000, Steven L. McShane.
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Romance of Leadership Scale
STRONGLY STRONGLY TO WHAT EXTENT DO YOU AGREE OR DISAGREE THAT . . . AGREE AGREE NEUTRAL DISAGREE DISAGREE
Source: This instrument is adapted and condensed from B. Schyns, J. R. Meindl, and M. A. Croon. “The Romance of Leadership Scale: Cross-cultural Testing and Refinement,” Leadership 3, no. 1 (2007): 29–46.
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.
1. Even in an economic recession, a good leader can prevent a company from doing poorly.
2. The quality of leadership is the single most important influence on how well the organization functions.
3. The CEO and executive team have relatively little effect on the company’s success or failure.
4. Sooner or later, bad leadership at the top will result in declining organizational performance.
5. The effect of a company’s leaders on organizational performance is fairly weak.
6. A company is only as good or as bad as its leaders.
7. Even the best leaders can’t help an organization very much when the economy is bad or competition is tough.
8. It is impossible for an organization to do well when its leaders are average.
9. Compared with the economy, competition, and other external forces, leaders have only a small influence on a firm’s performance.
10. The company’s top executives have the power to make or break the organization.
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Designing Organizational Structures
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c ha pter
After reading this chapter, you should be able to:
13-1 Describe three types of coordination in organizational structures.
13-2 Discuss the role and effects of span of control, centralization, and formalization, and relate these elements to organic and mechanistic organizational structures.
13-3 Identify and evaluate six types of departmentalization.
13-4 Explain the relevance of the external environment, organizational size, technology, and strategy for designing an organizational structure.
13
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alve Corporation’s organizational structure literally operates on wheels. Employees at the Bellevue, Washington, software and entertainment company have no bosses or departments to determine their job duties or location.
Instead, they figure out where their talents are best needed in the company and
move their desks (which have wheels) to that team. “Think of those wheels as
a symbolic reminder that you should always be considering where you could
move yourself to be more valuable,” says Valve’s quirky handbook. “There is no
organizational structure keeping you from being in close proximity to the people
who you’d help or be helped by most.”
Valve’s employees organize themselves into self-directed teams. “People commit
to projects, and projects are self-organizing,” explains Michael Abrash, a game
programmer and technical writer who recently joined Valve. Each team agrees on its
goals, deadlines, work rules, task assignments, and other issues. Each team has a lead
member, who helps coordinate the team but is not a traditional manager. Project
roles are determined through mutual agreement; pay is calculated from peer
evaluations of each employee’s contribution to Valve.
Another indication of Valve’s flat organizational structure is that employees make
corporate-level decisions through consensus. “Everyone is constantly making big
decisions for the company, and deciding where we’ll go and what products we
should build and so forth,” says Greg Coomer, one of Valve’s earliest employees.
Cofounder Gabe Newell is technically Valve’s CEO, but he avoids being viewed
as the top dog. “Of all the people at this company who aren’t your boss, Gabe is the
MOST not your boss, if you get what we’re saying,” employees are advised in the
handbook.
Contrary to what you might think, Valve isn’t a start-up with a handful of people.
It’s a multi-billion dollar company employing more than 300 engineers, artists, and
other professionals. Yet for almost two decades, Valve’s seemingly chaotic structure
has suppressed bureaucracy and empowered employees to discover and produce
innovative products. “Hierarchy is great for maintaining predictability and
al o co
Inn V
369
PART 4: ORGANIZATIONAL PROCESSES
Valve Corporation has a flat, organic organizational structure to leverage the creative and entrepreneurial potential of its 300 employees.
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370 Part Four Organizational Processes
repeatability,” says Valve’s employee handbook. “But when you’re an entertainment
company that’s spent the last decade going out of its way to recruit the most
intelligent, innovative, talented people on Earth, telling them to sit at a desk and do
what they’re told obliterates 99 percent of their value.”1
Valve Corporation’s organizational structure is different from that of most companies, but this design seems to serve the game maker and entertainment firm’s strategic objectives. Organizational structure refers to the division of labor and the patterns of coordination, communication, workflow, and formal power that direct organizational activities. It for- mally dictates what activities receive the most attention, as well as financial, power, and in- formation resources. At Valve, for example, power and resources flow mainly to teams, which have almost complete autonomy over their work objectives and work processes.
Although the topic of organizational structure typically conjures up images of an organiza- tional chart, this diagram is only part of the puzzle. Organizational structure includes these reporting relationships, but it also relates to job design, information flow, work standards and rules, team dynamics, and power relationships. As such, the organization’s structure is an im- portant instrument in an executive’s toolkit for organizational change, because it establishes new communication patterns and aligns employee behavior with the corporate vision.2
This chapter begins by introducing the two fundamental processes in organizational struc- ture: division of labor and coordination. This is followed by a detailed investigation of the four main elements of organizational structure: span of control, centralization, formalization, and departmentalization. The latter part of this chapter examines the contingencies of organiza- tional design, including external environment, organizational size, technology, and strategy.
Division of Labor and Coordination All organizational structures include two fundamental requirements: the division of labor into distinct tasks and the coordination of that labor so that employees are able to accom- plish common goals.3 Organizations are groups of people who work interdependently to- ward some purpose. To efficiently accomplish their goals, these groups typically divide the work into manageable chunks, particularly when there are many different tasks to perform. They also introduce various coordinating mechanisms to ensure that everyone is working effectively toward the same objectives.
DIVISION OF LABOR Division of labor refers to the subdivision of work into separate jobs assigned to different people. Subdivided work leads to job specialization, because each job now includes a narrow subset of the tasks necessary to complete the product or service. Although Valve Corpora- tion’s leaders don’t do the organizing, employees self-organize into project teams, and members of each team agree to the tasks they should perform. Valve encourages its staff to become multiskilled, but most people gravitate toward one area of expertise or another. As companies get larger, this horizontal division of labor is usually accompanied by a vertical division of labor: Some people are assigned the task of supervising employees, others are re- sponsible for managing those supervisors, and so on. Valve has been able to avoid (or limit) this vertical division of labor by relying on employees to manage themselves and each other. But even Valve has team leaders who coordinate the work, as well as marketing and strategy leaders who guide and support employees’ decisions on these matters.
Why do companies divide the work into several jobs? As we described in Chapter 6, job specialization increases work efficiency.4 Job incumbents can master their tasks quickly because work cycles are shorter. Less time is wasted changing from one task to another. Training costs are reduced because employees require fewer physical and mental skills to
organizational structure
The division of labor and patterns of coordination, communication, workflow, and formal power that direct organizational activities.
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Chapter Thirteen Designing Organizational Structures 371
accomplish the assigned work. Finally, job specialization makes it easier to match people with specific aptitudes or skills to the jobs for which they are best suited. Although one per- son working alone might be able to design a new online game, doing so would take much longer than having the work divided among several people with the required diversity of skills. Some employees are talented at thinking up innovative storylines, whereas others are better at preparing online drawings or working through financial costs.
COORDINATING WORK ACTIVITIES When people divide work among themselves, they require coordinating mechanisms to ensure that everyone works in concert. Coordination is so closely connected to the division of labor that the optimal level of specialization is limited by the feasibility of coordinating the work. In other words, an organization’s ability to divide work among people depends on how well those people can coordinate with each other. Otherwise, individual effort is wasted due to misalign- ment, duplication, and mistiming of tasks. Coordination also tends to become more expensive and difficult as the division of labor increases. Therefore, companies specialize jobs only to the point at which it isn’t too costly or challenging to coordinate the people in those jobs.5
Every organization—from the two-person corner convenience store to the largest corporate entity—uses one or more of the following coordinating mechanisms:6 informal communication, formal hierarchy, and standardization (see Exhibit 13.1). These forms of coordination align the work of staff within the same department as well as across work units. These coordinating mechanisms are also critical when several organizations work together, such as in joint ventures and humanitarian aid programs.7
Coordination Through Informal Communication All organizations rely on infor- mal communication as a coordinating mechanism. This process includes sharing information on mutual tasks and forming common mental models so that employees synchronize work activities using the same mental road map.8 Informal communication is vital in nonroutine
Visit connect.mcgrawhill.com for activities and test questions to help you learn about coordinating mechanisms and other organizational structure topics.
FORM OF COORDINATION DESCRIPTION SUBTYPES/STRATEGIES
EXHIBIT 13.1 Coordinating Mechanisms in Organizations
Sources: Based on information in J. Galbraith, Designing Complex Organizations (Reading, MA: Addison-Wesley, 1973), pp. 8–19; H. Mintzberg, The Structur- ing of Organizations (Englewood Cliffs, NJ: Prentice Hall, 1979), Ch. 1; D. A. Nadler and M. L. Tushman, Competing by Design: The Power of Organizational Architecture (New York: Oxford University Press, 1997), Ch. 6.
Sharing information on mutual tasks; forming common mental models to synchronize work activities
Assigning legitimate power to individuals, who then use this power to direct work processes and allocate resources
Creating routine patterns of behavior or output
• Direct communication • Liaison roles • Integrator roles • Temporary teams
• Direct supervision • Formal communication channels
• Standardized skills • Standardized processes • Standardized output
Informal communication
Formal hierarchy
Standardization
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372 Part Four Organizational Processes
and ambiguous situations, because employees need to exchange a large volume of information through face-to-face communication and other media-rich channels. Valve Corporation relies heavily on informal communication as a coordinating mechanism. Employees organize them- selves into teams and physically move close to each other to communicate directly, often on projects that typically enter uncharted territory.
Although coordination through informal communication is easiest in small firms, infor- mation technologies have further enabled this coordinating mechanism in large organiza- tions.9 Companies employing thousands of people also support informal communication by keeping each production site small. Magna International, the global auto parts manufac- turer, keeps its plants at a maximum size of around 200 employees. Magna’s leaders believe that employees have difficulty remembering others’ names in plants that are any larger, a situation that makes informal communication more difficult as a coordinating mechanism.10
Larger organizations also encourage coordination through informal communication by assigning liaison roles to employees, who are expected to communicate and share informa- tion with coworkers in other work units. When coordination is required among several work units, companies create integrator roles. These people are responsible for coordinating a work process by encouraging employees in each work unit to share information and informally coordinate work activities. Integrators do not have authority over the people involved in that process, so they must rely on persuasion and commitment. Brand managers for luxury per- fumes have integrator roles because they ensure that the work of fragrance developers, bottle designers, advertising creatives, production, and other groups are aligned with the brand’s image and meaning.11
Another way that larger organizations encourage coordination through informal commu- nication is by organizing employees from several departments into temporary teams. Tem- porary cross-functional teams give employees more authority and opportunity to coordinate through informal communication. This process is now common in vehicle design. As the design engineer begins work on product specifications, team members from manufacturing, engineering, marketing, purchasing, and other departments are able to provide immediate feedback, as well as begin their contribution to the process. Without the informal coordina- tion available through teams, the preliminary car design would pass from one department to the next—a much slower process.12
Coordination Through Formal Hierarchy Informal communication is the most flexible form of coordination, but it can become chaotic as the number of employees increases. Consequently, as organizations grow, they rely increasingly on a second coordinating mechanism: for- mal hierarchy.13 Hierarchy assigns legiti- mate power to individuals, who then use this power to direct work processes and allocate resources. In other words, work is coordinated through direct supervision— the chain of command.
A century ago, management scholars applauded the formal hierarchy as the best coordinating mechanism for large organizations. They argued that organiza- tions were most effective when managers exercised their authority and employees received orders from only one supervisor. The chain of command—in which
37% of 524 U.S. employees surveyed say they occasionally or frequently feel micromanaged by their boss.
25% of 500 U.S. employees surveyed say they work for a “micromanager.”
17% of 150 senior executives surveyed from the 1,000 largest American companies identify micromanaging as having the most negative impact on employee morale (third highest factor, after lack of communication and recognition).9%
of 11,045 U.S. employees surveyed identify micromanagement as the most significant barrier to their productivity.
31% of 97,000 employees surveyed in 30 countries describe their company’s leadership as oppressive or authoritative.
Coordination Through Micromanagement14
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Chapter Thirteen Designing Organizational Structures 373
information flows across work units only by going through supervisors and managers—was viewed as the backbone of organizational strength.
Although still important, formal hierarchy is much less popular today. One problem, which Valve’s cofounders have tried to avoid, is that hierarchical organizations are not as agile for coordination in complex and novel situations. Communicating through the chain of command is rarely as fast or accurate as direct communication between employ- ees. Another concern with formal hierarchy is that managers are able to closely supervise only a limited number of employees. As the business grows, the number of supervisors and layers of management must increase, resulting in a costly bureaucracy. Finally, today’s workforce demands more autonomy over work and more involvement in company deci- sions. Formal hierarchy coordination processes tend to conflict with employee autonomy and involvement.
Coordination Through Standardization Standardization, the third means of coordination, involves creating routine patterns of behavior or output. This coordinating mechanism takes three distinct forms:
• Standardized processes. The quality and consistency of a product or service can often be improved by standardizing work activities through job descriptions and procedures.15 For example, flow charts represent a standardized process coordinating mechanism. This coordinating mechanism works best when the task is routine (e.g., mass produc- tion) or simple (e.g., stocking shelves), but it is less effective in nonroutine and complex work such as product design (which Valve employees do).
• Standardized outputs. This form of standardization involves ensuring that individuals and work units have clearly defined goals and output measures (e.g., customer satis- faction, production efficiency). For instance, to coordinate the work of salespeople, companies assign sales targets rather than specific behaviors.
• Standardized skills. When work activities are too complex to standardize through processes or goals, companies often coordinate work effort by extensively training employees or hiring people who have learned precise role behaviors from educational programs. Valve Corporation relies on coordination through standardized skills. It carefully hires people for their skills in software engineering, animation, and related fields, so they can perform tasks without job descriptions or precise guidelines. Training is also a form of standardization through skills. Many companies have in-house training programs where employees learn how to perform tasks consistent with company expectations.
The division of labor and coordination of work represent the two fundamental ingredients of all organizations. But how work is divided, which coordinating mechanisms are empha- sized, who makes decisions, and other issues are related to the four elements of organiza- tional structure that we discuss over the next two sections of this chapter.
Elements of Organizational Structure Organizational structure has four elements that apply to every organization. This section introduces three of them: span of control, centralization, and formalization. The fourth element—departmentalization—is presented in the next section.
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374 Part Four Organizational Processes
SPAN OF CONTROL Chief executive officers are much busier today managing their direct reports than they were two or three decades ago. In the 1980s, an average of five people (typically vice-presidents) reported directly to the CEOs of Fortune 500 companies. By the end of the 1990s, this span of control increased an average of 6.5 direct reports. Today, CEOs of the largest U.S. firms have an average of 10 direct reports, double the number a few decades earlier. This increase reflects the fact that most Fortune 500 companies are far more complex today. They operate in many markets, have more variety of products, and employ people with a broader array of technical specialties. Each of these types of variation demand top-level attention, so there are more people reporting directly to the chief executive.16
Span of control (also called span of management) refers to the number of people directly reporting to the next level in the hierarchy. A narrow span of control exists when very few people report directly to a manager, whereas a wide span exists when a manager has many direct reports.17 A century ago, French engineer and management scholar Henri Fayol strongly recommended a relatively narrow span of control, typically no more than 20 em- ployees per supervisor and six supervisors per manager. Fayol championed formal hierarchy as the primary coordinating mechanism, so he believed that supervisors should closely mon- itor and coach employees. His views were similar to those of Napoleon, who declared that senior military leaders should have no more than five officers directly reporting to them. These prescriptions were based on the belief that managers simply could not monitor and control any more subordinates closely enough.18
Today, we know better. The best-performing manufacturing plants currently have an average of 38 production employees per supervisor (see Exhibit 13.2).19 What’s the secret here? Did Fayol, Napoleon, and others miscalculate the optimal span of control? The answer is that those sympathetic to hierarchical control believed that employees should perform the physical tasks, whereas supervisors and other management personnel should make the decisions and monitor employees to make sure they performed their tasks. In contrast, the best-performing manufacturing operations today rely on self-directed teams, so direct supervision (formal hierarchy) is supplemented with other coordinating
Figures represent the average number of direct reports per manager. “Max.” figures represent the maximum spans of control recommended by Napoleon Bonaparte, Henri Fayol, and Lindall Urwick. “Min.” figure represents the minimum span of control recommended by Tom Peters. “Goal” figures represent span of control targets that the U.S. government and the State of Iowa have tried to achieve. The State of Texas figure represents the span of control mandated by law. The Saratoga Institute figure is the average span of control among U.S. companies surveyed. The Best U.S. Plants figure is the average span of control in American manufacturing facilities identified by Industry Week magazine as the most effective. “Actual” figures are spans of control in the city of Seattle, State of Oregon, Multnomah County (including Portland, Oregon), State of Iowa, and Fedex Corporation in the years indicated.
Napoleon (Max. mgt.: 1815) Oregon (Actual: 2011)
Fayol (Max. mgt.: 1916) Urwick (Max. mgt.: 1937)
Seattle (Actual: 2005) Saratoga Institute (Survey: 2001) Multnomah County (Actual: 2009)
Texas State (Law: 2003) Iowa State (Actual: 2007)
Iowa State (Goal: 2007) U.S. Gov’t (Goal: 1999)
Fayol (Max. nonmgt.: 1916) Fedex (Actual: 2008)
Tom Peters (Min.: 1988) Best U.S. plants (Survey: 2000)
5 5.7
6 6
6.8 7.02
8.2 11 11
12 15
20 25 25
38
0 2010 30 40
EXHIBIT 13.2
Recommended, Actual, and Enforced Spans of Control20
span of control
The number of people directly reporting to the next level in the hierarchy.
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Chapter Thirteen Designing Organizational Structures 375
mechanisms. Self-directed teams coordinate mainly through informal communication and various forms of standardization (i.e., training and processes), so formal hierarchy plays more of a supporting role.
Many firms that employ doctors, lawyers, and other professionals also have a wider span of control because these staff members coordinate their work mainly through standardized skills. For example, more than two dozen people report directly to Cindy Zollinger, co- founder and president of the Boston-based litigation-consulting firm Cornerstone Research. Zollinger explains that this large number of direct reports is possible because she leads pro- fessional staff who don’t require close supervision. “They largely run themselves,” Zollinger explains. “I help them in dealing with obstacles they face, or in making the most of oppor- tunities that they find.”21
A second factor influencing the best span of control is whether employees perform rou- tine tasks. A wider span of control is possible when employees perform routine jobs, because they require less direction or advice from supervisors. A narrow span of control is necessary when employees perform novel or complex tasks, because these employees tend to require more supervisory decisions and coaching. This principle is illustrated in a survey of property and casualty insurers. The average span of control in commercial-policy processing depart- ments is around 15 employees per supervisor, whereas the span of control is 6.1 in claims service and 5.5 in commercial underwriting. Staff members in the latter two departments perform more technical work, so they have more novel and complex tasks, which requires more supervisor involvement. Commercial-policy processing, on the other hand, is like pro- duction work. Tasks are routine and have few exceptions, so managers have less coordinating to do with each employee.22
A third influence on span of control is the degree of interdependence among employees within the department or team.23 Generally, a narrow span of control is necessary where employees perform highly interdependent work with others. More supervision is required for highly interdependent jobs because employees tend to experience more conflict with each other, which requires more of a manager’s time to resolve. Also, employees are less clear on their personal work performance in highly interdependent tasks, so supervisors spend more time providing coaching and feedback.
Tall versus Flat Structures Span of control is interconnected with organizational size (number of employees) and the number of layers in the organizational hierarchy. Consider two companies with the same number of employees. If Company A has a wider span of control (more direct reports per manager) than Company B, then Company A necessarily has fewer layers of management (i.e., a flatter structure). The reason for this relationship is that a com- pany with a wider span of control has more employees per supervisor, more supervisors for each middle manager, and so on. This larger number of direct reports, compared to a company with a narrower span of control, is possible only by removing layers of management.
The interconnection of span of control, organizational size (number of employees), and number of management layers has important implications for companies. Organizations employ more people as they grow, which means they must widen the span of control, build a taller hierarchy, or both. Most companies end up building taller structures, because they
rely on direct supervision to some extent as a coordinating mechanism, and there are limits to how many people each manager can coordinate.
Unfortunately, building a taller hierarchy (more layers of management) creates problems. One concern is that executives in tall structures tend to re- ceive lower-quality and less timely information. People tend to filter, distort, and simplify information before it is passed to higher levels in the hierarchy, because they are motivated to frame the information in a positive light or summarize it more efficiently. In contrast, information receives less manipula- tion in flat hierarchies and is often received much more quickly than in tall hierarchies. “Any new idea condemned to struggle upward through multiple levels of rigidly hierarchical, risk-averse management is an idea that won’t see
KenGen, Kenya’s leading electricity generation company, had more than 15 layers of hierarchy a few years ago. Today, the company’s 1,500 employees are organized in a hierarchy with only 6 layers: the chief executive, executive directors, senior managers, chief officers, front line management, and nonmanagement staff. “This flatter structure has reduced bureaucracy, and it has also improved teamwork,” explains KenGen executive Simon Ngure.24
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376 Part Four Organizational Processes
daylight . . . until it’s too late,” warned Chrysler Corp. CEO Sergio Marchionne when he restructured the company.25
A second problem is that taller structures have higher overhead costs. With more manag- ers per employee, tall hierarchies necessarily have more people administering the company, thereby reducing the percentage of staff who are actually making the product or providing the service. A third issue with tall hierarchies is that employees usually feel less empowered and engaged in their work. Hierarchies are power structures, so more levels of hierarchy tend to draw power away from people at the bottom of that hierarchy. The size of the hierarchy itself tends to focus power around managers rather than employees.26
These problems have prompted companies to remove one or more levels in the organiza- tional hierarchy.27 This “delayering” recently occurred at Sandvik, the Swedish manufacturer of tools and equipment for mining and other industries. “We had as much as 13 layers in the company between me as CEO and the most junior worker in the Company,” says Sandvik CEO Olof Faxander. “We’ve flattened that [so we] only have up to seven layers in the Company.”28 At the same time, critics warn that cutting back middle management may do more harm than good.
debating point SHOULD ORGANIZATIONS CUT BACK MIDDLE MANAGEMENT?
Business leaders face the ongoing challenge of preventing their organization from ballooning into a fat bureaucracy with too many layers of middle managers. Indeed, it has become a mantra for incoming CEOs to gallantly state they will “delayer” or “flatten” the corporate hierarchy, usually as part of a larger mandate to “empower” the workforce. As we describe in this chapter, there are several valid argu- ments for minimizing the corporate hierarchy, particularly by cutting back middle management. As companies employ more managers, they increase overhead costs and have a lower percentage of people actually generating revenue by making products or providing services. A taller hierarchy also undermines effective communication between frontline staff—who receive valuable knowledge about the external environment—and the top executive team. Middle managers have a tendency to distort, simplify, and filter information as it passes from them to higher authorities in the company. A third reason for cutting back middle management is that they absorb organizational power. As compa- nies add more layers, they remove more power that might have been assigned directly to frontline employees. In other words, tall hierarchies potentially undermine employee empowerment. These concerns seem logical, but slashing the hierarchy can have several unexpected consequences that outweigh any bene- fits. In fact, a growing chorus of management experts warn about several negative long-term consequences of cutting out too much middle management.29
Critics of delayering point out that all companies need manag- ers to translate corporate strategy into coherent daily operations.
“Middle managers are the link between your mission and execu- tion,” advises a senior hospital executive. “They turn our strategy into action and get everyone on the same page.”30 Furthermore, managers are needed to make quick decisions, coach employees, and help resolve conflicts. These valuable functions are under- served when the span of control becomes too wide. Delayering increases the number of direct reports per man- ager and thus significantly increases management workload and corresponding levels of stress. Managers partly reduce the work- load by learning to give subordinates more autonomy rather than micromanaging them. However, this role adjustment itself is stressful (same responsibility, but less authority or control). Com- panies often increase the span of control beyond the point at which many managers are capable of coaching or leading their direct reports. A third concern is that delayering results in fewer managerial jobs, so companies have less maneuverability to develop mana- gerial skills. Promotions are also riskier, because they involve a larger jump in responsibility in flatter, compared with taller, hierar- chies. Furthermore, having fewer promotion opportunities means that managers experience more career plateauing, which re- duces their motivation and loyalty. Chopping back managerial ca- reer structures also sends a signal that managers are no longer valued. “Delayering has had an adverse effect on morale, produc- tivity, and performance,” argues a senior government executive. “Disenfranchising middle management creates negative percep- tions and lower commitment to the organization with consequent reluctance to accept responsibility.”31
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Chapter Thirteen Designing Organizational Structures 377
CENTRALIZATION AND DECENTRALIZATION Centralization means that formal decision-making authority is held by a small group of people, typically those at the top of the organizational hierarchy. Most organizations begin with centralized structures, as the founder makes most of the decisions and tries to direct the business toward his or her vision. As organizations grow, however, they diversify, and their environments become more complex. Senior executives aren’t able to process all the deci- sions that significantly influence the business. Consequently, larger organizations typically decentralize; that is, they disperse decision authority and power throughout the organization.
The optimal level of centralization or decentralization depends on several contingencies that we will examine later in this chapter. However, different degrees of decentralization can occur simultaneously in different parts of an organization. For instance, the sales, market- ing, and operations units at Google are fairly centralized, whereas the engineering areas are much more decentralized so they can develop new products without top-down control. Likewise, 7-Eleven relies on both centralization and decentralization in different parts of the organization. It centralizes decisions about information technology and supplier purchasing to improve buying power, increase cost efficiencies, and minimize complexity across the or- ganization. Yet it decentralizes local inventory decisions to store managers, because they have the best information about their customers and can respond quickly to local market needs. “We could never predict a busload of football players on a Friday night, but the store man- ager can,” explains a 7-Eleven executive.32
FORMALIZATION Formalization is the degree to which organizations standard- ize behavior through rules, procedures, formal training, and related mechanisms.34 In other words, companies become more formalized as they increasingly rely on various forms of standardization to coordinate work. McDonald’s Restaurants and most other efficient fast-food chains typically have a high
Samsonite, the Swiss-based luggage company, recently abandoned its centralized organizational structure by delegating more power to country managers. The reason? “We’ve learned that all of our customers are more different than similar,” explains Samsonite chief financial officer Kyle Gendreau. Rather than follow global marketing and distribution practices dictated by head office, country managers are now “empowered” to apply practices that best serve their local markets. “Letting people be entrepreneurial on the ground drives growth,” says Gendreau. “It’s really paying off for us.”33
centralization
The degree to which formal decision authority is held by a small group of people, typically those at the top of the organizational hierarchy.
formalization
The degree to which organizations standardize behavior through rules, procedures, formal training, and related mechanisms.
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378 Part Four Organizational Processes
degree of formalization because they rely on the standardization of work processes as a coordi- nating mechanism. Employees have precisely defined roles, right down to how much mustard should be dispensed, how many pickles should be applied, and how long each hamburger should be cooked.
Older companies tend to become more formalized because work activities become rou- tinized, making them easier to document in standardized practices. Larger companies also tend to have more formalization because direct supervision and informal communication among employees do not operate as easily when large numbers of people are involved. External influences, such as government safety legislation and strict accounting rules, also encourage formalization.
Formalization may increase efficiency and compliance, but it can also create prob- lems.35 Rules and procedures reduce organizational flexibility, so employees follow pre- scribed behaviors even when the situation clearly calls for a customized response. High levels of formalization tend to undermine organizational learning and creativity. Some work rules become so convoluted that organizational efficiency would decline if they were actually followed as prescribed. Formalization is also a source of job dissatisfaction and work stress. Finally, rules and procedures have been known to take on a life of their own in some organizations. They become the focus of attention, rather than the organi- zation’s ultimate objectives of producing a product or service and serving dominant stakeholders.
MECHANISTIC VERSUS ORGANIC STRUCTURES We discussed span of control, centralization, and formalization together because they cluster around two broader organizational forms: mechanistic and organic structures (see Exhibit 13.3).36 A mechanistic structure is characterized by a narrow span of control and high degree of formalization and centralization. Mechanistic structures have many rules and procedures, limited decision making at lower levels, tall hierarchies of people in special- ized roles, and vertical rather than horizontal communication flows. Tasks are rigidly defined and are altered only when sanctioned by higher authorities.
Companies with an organic structure have the opposite characteristics. They operate with a wide span of control, decentralized decision making, and little formalization. Tasks are fluid, adjusting to new situations and organizational needs. Valve Corporation, which was described at the beginning of this chapter, has a highly organic structure. With at most two layers (some claim it has one layer, and therefore no hierarchy), Valve’s span of control is about as wide as a company can get. Decision making is decentralized down to teams and individuals. “Three people at the company can ship anything,” says Greg Coomer, one of
Valve’s earliest employees. He explains that any employee alone can launch a product without permission, but the company encourages at least three people because “the work gets better if you just check with a couple of people before you decide to push a button.”37 Valve also has mini- mal formalization. The company doesn’t have job descrip- tions and seems to have few lists of procedures for hiring, buying, or other activities.
Does your job require a mechanistic or organic structure? Visit connect. mcgrawhill.com to estimate whether the type of work you perform is better suited to one or the other of these organizational structures.
mechanistic structure
An organizational structure with a narrow span of control and a high degree of formalization and centralization.
organic structure
An organizational structure with a wide span of control, little formalization, and decentralized decision making.
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As a general rule, mechanistic structures operate better in stable environments because they rely on efficiency and routine behaviors. Organic structures work better in rapidly changing (i.e., dynamic) environments because they are more flexible and responsive to the changes. Organic structures are also more compatible with organizational learning and high-performance workplaces because they emphasize information sharing and an empow- ered workforce rather than hierarchy and status.38 However, the effectiveness of organic structures depends on how well employees have developed their roles and expertise.39 With- out these conditions, employees are unable to coordinate effectively, resulting in errors and gross inefficiencies.
Forms of Departmentalization Span of control, centralization, and formalization are important elements of organiza- tional structure, but most people think about organizational charts when the discussion of organizational structure arises. The organizational chart represents the fourth element in the structuring of organizations, called departmentalization. Departmentalization specifies how employees and their activities are grouped together. It is a fundamental strategy for coordinating organizational activities because it influences organizational behavior in the following ways:40
• Departmentalization establishes the chain of command—the system of common supervision among positions and units within the organization. It frames the mem- bership of formal work teams and typically determines which positions and units must share resources. Thus, departmentalization establishes interdependencies among employees and subunits.
• Departmentalization focuses people around common mental models or ways of thinking, such as serving clients, developing products, or supporting a particular skill set. This focus is typically anchored around the common budgets and measures of performance assigned to employees within each departmental unit.
• Departmentalization encourages specific people and work units to coordinate through informal communication. With common supervision and resources, members within each configuration typically work near each other, so they can use frequent and informal interaction to get the work done.
Visit connect.mcgrawhill.com for activities and test questions to help you learn about the different forms of departmentalization.
Narrow span of control Wide span of control High centralization High decentralization High formalization Low formalization
MECHANISTIC STRUCTURE ORGANIC STRUCTUREEXHIBIT 13.3
Contrasting Mechanistic and Organic Organizational Structures
LO 13-3
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380 Part Four Organizational Processes
There are almost as many organizational charts as there are businesses, but the six most common pure types of departmentalization are simple, functional, divisional, team-based, matrix, and network.
SIMPLE STRUCTURE Most companies begin with a simple structure.41 They employ only a few people and typi- cally offer only one distinct product or service. There is minimal hierarchy—usually just employees reporting to the owners. Employees perform broadly defined roles because there are insufficient economies of scale to assign them to specialized jobs. The simple structure is highly flexible and minimizes the walls that form between employees in other structures. However, the simple structure usually depends on the owner’s direct supervision to coordi- nate work activities, so it is very difficult to operate as the company grows and becomes more complex.
FUNCTIONAL STRUCTURE As organizations grow, they typically shift from a simple structure to a functional structure. Even after they adopt more complex organizational structures (which we discuss later), they will have a functional structure at some level of the hierarchy. A functional structure orga- nizes employees around specific knowledge or other resources (see Exhibit 13.4). Employees with marketing expertise are grouped into a marketing unit, those with production skills are located in manufacturing, engineers are found in product development, and so on. Organi- zations with functional structures are typically centralized to coordinate their activities effectively.
Evaluating the Functional Structure The functional structure creates special- ized pools of talent that typically serve everyone in the organization. This provides more economies of scale than are possible if functional specialists are spread over different parts of the organization. It increases employee identity with the specialization or profession. Direct supervision is easier in functional structures, because managers oversee people with common issues and expertise.42
The functional structure also has limitations.43 Grouping employees around their skills tends to focus attention on those skills and related professional needs, rather than on the company’s product, service, or client needs. Unless people are transferred from one function to the next, they might not develop a broader understanding of the business. Compared with other structures, the functional structure usually produces higher dysfunctional conflict and poorer coordination in serving clients or developing products. These problems occur because employees need to work with coworkers in other departments to complete organi- zational tasks, yet they have different subgoals and mental models of ideal work. Together, these problems require substantial formal controls and coordination when people are orga- nized around functions.
Chief executive
Manufacturing Design Administration Marketing
EXHIBIT 13.4
A Functional Organizational Structure
functional structure
An organizational structure in which employees are organized around specific knowledge or other resources.
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DIVISIONAL STRUCTURE The divisional structure (sometimes called the multidivisional or M-form structure) groups employees around geographic areas, outputs (products or services), or clients. Exhibit 13.5 illustrates these three variations of divisional structure.45 The geographic divisional structure organizes employees around distinct regions of the country or world. Exhibit 13.5(a) illus- trates a geographic divisional structure adopted by Barrick Gold Corporation, the world’s largest gold-mining company. The product/service divisional structure organizes employees around distinct outputs. Exhibit 13.5(b) illustrates a simplified version of this type of struc- ture at Philips. The Dutch electronics company divides its workforce mainly into three divi- sions: health care products, lighting products, and consumer products. (Philips also has a fourth organizational group consisting of the research and design functions.) The client divisional structure organizes employees around specific customer groups. Exhibit 13.5(c) illustrates a customer-focused divisional structure similar to one adopted by the U.S. Inter- nal Revenue Service.46
Toyota Shifts Gears from a Functional to Regional Structure44
Over the past few years, Toyota Motor Company has received scathing criticism for its ineffective handling of cars that sud- denly accelerated. Some drivers reported that the company- designed floor mats pressed on the gas pedal, causing their car to suddenly speed up. Others argued that the electronic systems in the pedal were faulty. Toyota allegedly ignored the early complaints or attributed them mainly to driver error when the problem could not be replicated by its engineers. The National Highway Traffic Safety Administration (NHTSA) grew increasingly frustrated with Toyota’s public deni- als, but even more so with its slow response to the problems. It fined Toyota four times in recent years (some were the maxi- mum fine allowed) for failing to report problems to the govern- ment regulator or for being too slow to recall faulty vehicles. Tensions became particularly strained after the NHTSA told Toyota to recall vehicles with faulty floor mats. The company issued the recall, but also announced that the NHTSA had concluded that “no defect exists” in the recalled vehicles. The next day, the NHTSA issued its own statement, saying that Toyota’s announcement was “inaccurate and misleading.” How could one of the largest and most respected auto- makers in the world get into this situation? Whether through its own reflection or external pressure, Toyota commissioned a special panel of independent experts to find the answer. The panel offered recommendations regarding mechanical and electrical engineering, supplier product quality, and processes to address issues of quality and safety. But the panel’s main conclusion was that Toyota’s slow and inappropriate responses were mostly due to its organizational structure. In particular, the review panel reported that Toyota was mainly organized around functional units (sales, engineering, manufacturing) and that the heads of these units in each re- gion reported directly to headquarters in Japan. Toyota did not
have structural integration around regions, so its centralized functional structure resulted in silos of knowledge and slower decision making. The panel concluded: “Toyota’s tightly- controlled global structure: (1) hindered information sharing and contributed to miscommunication; and (2) delayed response time to quality and safety issues, fueling criticism that Toyota was being unresponsive to regulators and customers.” Toyota CEO Akio Toyoda agreed that Toyota’s functional structure should be replaced with a geographic divisionalized structure. “Dealing with our overseas operations on a regional basis, rather than a functional basis, will enable us to conduct decision making on a more-comprehensive basis.” Two years after the panel’s report, Toyota introduced a new organiza- tional structure that refocused power from functions to geo- graphic regions. “Integrating Toyota’s North America affiliates under a more unified and streamlined management structure will significantly enhance local responsibility over operations, clarify decision-making and strengthen our customer-first focus,” says James Lentz, who has become president of Toyota’s North American business.
global connections 13.1
divisional structure
An organizational structure in which employees are organized around geographic areas, outputs (products or services), or clients.
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382 Part Four Organizational Processes
Which form of divisional structure should large organizations adopt? The answer de- pends mainly on the primary source of environmental diversity or uncertainty.47 Suppose an organization has one type of product sold to people across the country. If customers have different needs across regions, or if state governments impose different regulations on the product, then a geographic structure would be best to be more vigilant of this diversity. On the other hand, if the company sells several types of products across the country and customer preferences and government regulations are similar everywhere, then a product structure would likely work best.
Coca-Cola, Nestlé, and many other food and beverage companies are organized mainly around geographic regions because consumer tastes and preferred marketing strategies vary considerably around the world. Even though McDonald’s makes the same Big Mac throughout the world, the company has more fish products in Hong Kong and more vegetarian products in India, in line with traditional diets in those countries. Philips, on the other hand, is organized around products because consumer preferences around the world are similar within each product group. Hospitals from Geneva, Switzerland, to Santiago, Chile, buy similar medical equipment from Philips, whereas the manufacturing and marketing of these products are quite different from Philips’s consumer electronics business.
Commissioner (chief executive)
Wage & investment (individual taxpayers)
Small business & self-employed
Large & mid-sized business
Tax-exempt & government entities
Chief executive officer
Health care Lighting products Consumer
lifestyle
(a) Geographic divisional structure
(b) Product divisional structure
(c) Client divisional structure
Chief executive officer
North America
South America
Australia/ Pacific
Africa
EXHIBIT 13.5 Three Types of Divisional Structure
Note: Diagram (a) shows a global geographic divisional structure similar to Barrick Gold Corp.; diagram (b) is similar to the product divisions at Philips; diagram (c) is similar to the customer-focused structure at the U.S. Internal Revenue Service.
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Chapter Thirteen Designing Organizational Structures 383
Many companies are moving away from structures that organize people around geo- graphic clusters.48 One reason is that clients can purchase products online and communicate with businesses from almost anywhere in the world, so local representation is becoming less critical. Reduced geographic variation is another reason for the shift away from geographic structures; freer trade has reduced government intervention, and consumer preferences for many products and services are becoming more similar (converging) around the world. The third reason is that large companies increasingly have global business customers who de- mand one global point of purchase, not one in every country or region.
Globally Integrated Enterprise The shift away from geographic and toward prod- uct or client-based divisional structures reflects the trend toward the globally integrated enterprise (GIE).49 As the label implies, a globally integrated enterprise connects work pro- cesses around the world, rather than replicating them within each country or region. This type of organization typically organizes people around product or client divisions. Even functional units—production, marketing, design, human resources, and so on—serve the company worldwide rather than within specific geographic clusters. These functions are sensitive to cultural and market differences and have local representation to support that sensitivity. However, local representatives are associates of a global function rather than a local subsidiary copied across several regions. Indeed, a GIE is marked by a dramatic increase in virtual teamwork, because employees are assigned global projects and ongoing responsibilities for work units that transcend geographic boundaries.
At the core of the GIE model is the notion that companies should move their operations where the people with the best skill set and cost efficiencies are located. IBM senior execu- tive Michael Cannon-Brookes describes the GIE structure using IBM’s business in Japan as an example: “Under our GIE model, we now have the HR for IBM Japan done in Manila, accounts receivable done in Shanghai, the accounting done in Kuala Lumpur, procurement in Shenzhen, and the customer service help desk is in Brisbane. That is true global integra- tion, and it is also optimal for our Japan business.”50
Evaluating the Divisional Structure The divisional organizational structure is a building-block structure; it accommodates growth relatively easily and focuses employee attention on products or customers rather than tasks. Different products, services, or clients can be accommodated by sprouting new divisions. This structure also directs employee attention to customers and products, rather than to their own specialized knowl- edge.51 These advantages are offset by a number of limitations. First, the divisional struc- ture tends to duplicate resources, such as production equipment and engineering or information technology expertise. Also, unless the division is quite large, resources are not used as efficiently as they are in functional structures where resources are pooled across the entire organization. The divisional structure also creates silos of knowledge. Expertise is spread across several autonomous business units, which reduces the ability and perhaps motivation of the people in one division to share their knowledge with counterparts in other divisions. In contrast, a functional structure groups experts together, thereby sup- porting knowledge sharing.
Finally, the preferred divisional structure depends on the company’s primary source of environmental diversity or uncertainty. This principle seems to be applied easily enough at Coca-Cola, McDonald’s, and Philips, but many global organizations experience diversity and uncertainty in terms of geography, product, and clients. Consequently, some organiza- tions revise their structures back and forth or create complex structures that attempt to give all three dimensions equal status. This waffling generates further complications, because organizational structure decisions shift power and status among executives. If the company switches from a geographic to a product structure, people who lead the geographic fiefdoms suddenly get demoted under the product chiefs. In short, leaders of global organizations struggle to find the best divisional structure, often resulting in the departure of some execu- tives and frustration among those who remain.
globally integrated enterprise
An organizational structure in which work processes and executive functions are distributed around the world through global centers, rather than developed in a home country and replicated in satellite countries or regions.
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384 Part Four Organizational Processes
384
W. L. Gore & Associates employs 9,500 people but no managers. That’s because the Newark, Delaware–based manufacturer of fabrics (Gore-Tex®), electronics, industrial, and medical products has adopted an organizational structure where most employees (called “associates”) are organized around self-directed teams. Day-to-day decisions are decentralized to these teams, which are formed around idea champions and plenty of shared leadership. “Your team is your boss, because you don’t want to let them down,” says Diane Davidson, who works in Gore’s fashion products group. “Everyone’s your boss, and no one’s your boss.”52
TEAM-BASED STRUCTURE We began this chapter describing Valve Corporation, the Bellevue, Washington, games soft- ware and entertainment company with an unusual organizational structure. Valve’s structure is decidedly flat (minimal hierarchy), but it is perhaps best described as a completely team- based organizational structure. A team-based organizational structure is built around self-directed teams that complete an entire piece of work, such as manufacturing a product or developing an electronic game. This type of structure is usually organic. There is a wide span of control because teams operate with minimal supervision. In extreme situations such as at Valve, there is no formal leader, just someone selected by other team members to help coordinate the work and liaise with top management.
Team structures are highly decentralized because almost all day-to-day decisions are made by team members rather than someone further up the organizational hierarchy. Many team- based structures also have low formalization, because teams are given relatively few rules about how to organize their work. Instead, executives assign quality and quantity output targets, and often productivity improvement goals, to each team. Teams are then encouraged to use available resources and their own initiative to achieve those objectives.
Team-based structures are usually found within the manufacturing or service opera- tions of larger divisional structures. Several GE Aircraft Engines plants are organized as team-based structures, but these plants operate within GE’s larger divisional structure. However, a small number of firms apply the team-based structure from top to bottom, including W. L. Gore & Associates, Semco SA, and Valve Corporation, where almost all associates work in teams.
Evaluating the Team-Based Structure The team-based structure has gained popularity because it tends to be flexible and responsive in turbulent environments.53 It can reduce costs, because teams have less reliance on formal hierarchy (direct supervision). A cross-functional team structure improves communication and cooperation across tradi- tional boundaries. With greater autonomy, this structure also allows quicker and more informed decision making.54 For this reason, some hospitals have shifted from functional departments to cross-functional teams. Teams composed of nurses, radiologists, anesthe- tists, a pharmacology representative, possibly social workers, a rehabilitation therapist, and other specialists communicate and coordinate more efficiently, thereby reducing delays and errors.55
Contrasted with these benefits, the team-based structure can be costly to maintain, due to the need for ongoing interpersonal skills training. Teamwork potentially takes more time to coordinate than formal hierarchy during the early stages of team development. Employees may experience more stress due to increased ambiguity in their roles. Team leaders also ex- perience more stress due to increased conflict, loss of functional power, and unclear career progression ladders. In addition, team structures suffer from duplication of resources and potential competition (and lack of resource sharing) across teams.56
team-based organizational
structure
An organizational structure built around self-directed teams that complete an entire piece of work.
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Chapter Thirteen Designing Organizational Structures 385
MATRIX STRUCTURE ABB Group, one of the world’s largest power and automation technology engineering firms, has five product divisions, such as power products and process automation. It employs more than 140,000 people across 100 countries, so the global giant also has eight regional groups (North America, IMEA, and so forth). What organizational structure would work best for ABB? For example, should the head of power products in North America report to the worldwide head of power products in Zurich, Switzerland, or to the head of North American operations?
For ABB, the answer is to have the regional product leaders report to both the regional chiefs and the product chiefs back at global headquarters. In other words, ABB has a matrix structure, which overlays two structures (such as a geographic divisional and product struc- ture) to leverage the benefits of both.57 Exhibit 13.6 shows a geographic–product matrix structure, which is a simplified version of ABB’s structure. The dots represent the individu- als who have two bosses. For example, the head of power products in North America reports to both the worldwide head of the product group and to the head of North American operations.
A common mistaken belief is that everyone in this type of matrix organizational structure reports to two bosses. In reality, only managers at one level in the organization (typically country-specific product managers) report to two bosses. For example, though the manager responsible for power products in North America reports to both the worldwide head of the product group and to the head of North American operations, employees below that country product leader report to only a manager in North America.
matrix structure
An organizational structure that overlays two structures (such as a geographic divisional and a product structure) to leverage the benefits of both.
Note: This diagram is for illustrative purposes only. ABB’s structure has eight regional groups rather than the five shown here. It also has four non-matrixed functional groups reporting directly to the CEO. Also, this diagram assumes ABB has a pure matrix structure, where both product and regional chiefs have equal power, whereas either the regional or product groups might have more direct line authority.
North America
Product Groups
Regional Groups
South America
Europe Middle East, Africa/India
Asia Pacific
Power Products
Process Automation
Low Voltage Products
Power Systems
Discrete Automation and Motion
Product leader in that region
EXHIBIT 13.6 Matrix Organizational Structure Similar to ABB Group
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386 Part Four Organizational Processes
The geographic-product matrix structure is likely the most common matrix design among global companies. For instance, Nestlé, Procter & Gamble, and Shell have variations of this matrix structure, because these firms recognize that regional groups and products/ services groups are equally important. Other variations of matrix structures also exist in global businesses, however. Macquarie Group overlays client groups (e.g., securities, invest- ment funds, and currencies/commodities) with four functional groups (risk management, legal/governance, financial management, and corporate operations).58
Global organizations tend to have complex designs that combine different types of struc- tures, so a “pure” matrix design is relatively uncommon. A pure matrix gives equal power to leaders of both groups (regions and products, for example), but some companies give more power to one set of groups while the other set of groups has “dotted line” or advisory author- ity. So, although ABB’s head of power products has two bosses, one of them might have more final say or line authority than the other. Some companies also deviate from the pure matrix structure by applying it only to some regions. One such example is Cummins Inc., which is mainly organized around product divisions but has a matrix structure in China, India, and Russia. These markets are large, with high potential, and are potentially less visi- ble to headquarters, so the country leaders are given as much authority as the product lead- ers within those regions. “I think in China there’s still enough lack of transparency, there’s still enough uniqueness to the market that having some kind of coordination across business units gets the greatest synergies,” explains Michael Barbalas, China president of Goodrich Corporation.59
So far, we have described matrix structures for global or otherwise large and complex organizations. Another type of matrix structure overlays functional units with project teams and exists in small or large companies.60 Bioware adopted this project-functional matrix structure soon after the Canadian electronic games company was born a decade ago. Most Bioware employees have two managers. One manager leads the specific project where employees are assigned, such as Star Wars, Baldur’s Gate, and Dragon Age; the other man- ager is head of the employee’s functional specialization, such as art, programming, audio, quality assurance, and design.61 Employees are assigned permanently to their functional unit but physically work with the temporary project team. When the project nears com- pletion, the functional boss reassigns employees in his or her functional specialization to another project.
Evaluating the Matrix Structure The functional–project matrix structure usually makes very good use of resources and expertise, making it ideal for project-based organi- zations with fluctuating workloads. When properly managed, it improves communication efficiency, project flexibility, and innovation, compared with purely functional or divi- sional designs. It focuses employees on serving clients or creating products yet keeps peo- ple organized around their specialization, so knowledge sharing improves and resources are used more efficiently. Matrix structures for global organizations (e.g., geographic– product structure) are also a logical choice when, as in the case of ABB Group, two differ- ent dimensions (regions and products) are equally important. Structures determine executive power and what should receive priority; the matrix structure works best when the business environment is complex and two different dimensions deserve equal atten- tion and integration. Executives who have worked in a global matrix also say they have more freedom, likely because their two bosses are more advisory and less command and control focused.62
In spite of these advantages, the matrix structure has several well-known problems.63 One concern is that it increases conflict among managers who equally share power. Employees working at the matrix level have two bosses and, consequently, two sets of priorities that aren’t always aligned. Project leaders might squabble with functional leaders regarding the assignment of specific employees to projects as well as regarding the employee’s technical competence. However, successful companies manage this conflict by developing and pro- moting leaders who can work effectively in matrix structures. “Of course there’s potential for
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Chapter Thirteen Designing Organizational Structures 387
Hana Financial Group reorganized around a matrix structure that overlaps its client businesses (retail banking, brokerage, insurance) with product groups (money management, investments, bonds). The Korean bank says the new structure has noticeably improved collaboration across businesses and produced better financial results. However, Korea’s financial supervisory service (FSS) claims Hana’s matrix structure is also partly responsible for widespread embezzlement of gift certificates for tourists at about 60 bank branches. “In a matrix structure, marketing, performance reviews, and the power to make decisions on personnel lies with the head of the business unit, while internal control and risk management are the responsibility of the affiliated company’s CEO,” explains a high-ranking FSS official. “This can lead to a blind spot in management.”65
friction,” says Chandrasekhar Sripada, human resources head at IBM India. “In fact, one of the prerequisites to attaining a leadership position at IBM is the ability to function in a matrix structure.”64
Ambiguous accountability is another challenge with matrix structures. In a functional or divisional structure, one manager is responsible for everything, even the most unexpected issues. But in a matrix structure, the unusual problems don’t get resolved because neither manager takes ownership of them.66 Due to this ambiguous accountability, matrix structures have been blamed for corporate ethical misconduct, such as embezzlement at Hana Finan- cial Group in Korea and massive bribes at Siemens AG in Germany. Oracle president Mark Hurd warned of this problem a few years ago when he was CEO of Hewlett-Packard: “The more accountable I can make you, the easier it is for you to show you’re a great performer,” says Hurd. “The more I use a matrix, the easier I make it to blame someone else.”67 The combination of dysfunctional conflict and ambiguous accountability in matrix structures also explains why some employees experience more stress and some managers are less satis- fied with their work arrangements.
NETWORK STRUCTURE BMW AG and Daimler AG aren’t eager to let you know this, but some of their vehicles, designed and constructed with Germanic precision, are neither designed nor constructed by them or in Germany. Much of BMW’s X3, for example, was designed by Magna Steyr in Austria. Magna also manufactured the vehicle in Austria, until BMW transferred this work to its manufacturing plant in the United States. The contract manufacturer also builds Daimler’s off-road G-class Mercedes. Both BMW and Daimler Benz are hub organizations that own and market their respective brands, whereas Magna and other suppliers are spokes around the hub that provide production, engineering, and other services that get the auto firms’ luxury products to customers.68
BMW, Daimler, and many other organizations are moving toward a network structure as they design and build a product or serve a client through an alliance of several organiza- tions.69 As Exhibit 13.7 illustrates, this collaborative structure typically consists of several satellite organizations bee-hived around a hub or core firm. The core firm orchestrates the network process and provides one or two other core competencies, such as marketing or
network structure
An alliance of several organizations for the purpose of creating a product or serving a client.
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388 Part Four Organizational Processes
product development. In our example, BMW or Mercedes is the hub that provides market- ing and management, whereas other firms perform many other functions. The core firm might be the main contact with customers, but most of the product or service delivery and support activities are farmed out to satellite organizations located anywhere in the world. Extranets (web-based networks with partners) and other technologies ensure that informa- tion flows easily and openly between the core firm and its array of satellites.70
One of the main forces pushing toward a network structure is the recognition that an organization has only a few core competencies. A core competency is a knowledge base that resides throughout the organization and provides a strategic advantage. As companies dis- cover their core competency, they outsource noncritical tasks to other organizations that have a core competency at performing those tasks. For instance, BMW decided long ago that facilities management is not one of its core competencies, so it outsourced this function from its British engine plant to Dalkia, which specializes in facility maintenance and energy management.71
Companies are also more likely to form network structures when technology is changing quickly and production processes are complex or varied.72 Many firms cannot keep up with the hyperfast changes in information technology, so they have outsourced their entire infor- mation system departments to IBM, HP Enterprise Business, and other firms that specialize in information system services. Similarly, many high-technology firms form networks with Flextronics, Celestica, and other electronic equipment manufacturers that have expertise in diverse production processes.
Evaluating the Network Structure Organizational behavior theorists have long argued that organizational leaders must develop a metaphor of organizations as plasma-like organisms rather than rigid machines.73 Network structures come close to the organism metaphor because they offer the flexibility to realign their structure with changing environ- mental requirements. If customers demand a new product or service, the core firm forms new alliances with other firms offering the appropriate resources. For example, by working with Magna International, BMW was probably able to develop and launch the X3 vehicle
Marketing partner (USA)
CORE FIRM
Assembly partner
(Mexico)
Call center partner (India)
Accounting partner (USA)
Product development
partner (France)
Package design partner
(UK)
EXHIBIT 13.7
A Network Organizational Structure
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Chapter Thirteen Designing Organizational Structures 389
much sooner than would have been the case if it had performed these tasks on its own. When BMW needs a different type of manufacturing, it isn’t saddled with nonessential fa- cilities and resources. Network structures also offer efficiencies because the core firm be- comes globally competitive as it shops worldwide for subcontractors with the best people and the best technology at the best price. Indeed, the pressures of global competition have made network structures more vital, and computer-based information technology has made them possible.74
A potential disadvantage of network structures is that they expose the core firm to market forces. Other companies may bid up the price for subcontractors, whereas the short-term cost would be lower if the company hired its own employees to perform the same function. An- other problem is that although information technology makes worldwide communication much easier, it will never replace the degree of control organizations have when manufactur- ing, marketing, and other functions are in-house. The core firm can use arm’s-length incentives and contract provisions to maintain the subcontractor’s quality, but these actions are relatively crude compared with maintaining the quality of work performed by in-house employees.
Contingencies of Organizational Design Most organizational behavior theories and concepts have contingencies: Ideas that work well in one situation might not work as well in another situation. This contingency approach is certainly relevant when choosing the most appropriate organizational structure.75 In this section, we introduce four contingencies of organizational design: external environment, size, technology, and strategy.
EXTERNAL ENVIRONMENT The best structure for an organization depends on its external environment. The external environment includes anything outside the organization, including most stakeholders (e.g., clients, suppliers, government), resources (e.g., raw materials, human resources, informa- tion, finances), and competitors. Four characteristics of external environments influence the type of organizational structure best suited to a particular situation: dynamism, complexity, diversity, and hostility.76
Dynamic versus Stable Environments Dynamic environments have a high rate of change, leading to novel situations and a lack of identifiable patterns. Organic struc- tures in which employees are experienced and coordinate well in teams are better suited to dynamic environments, so the organization can adapt more quickly to changes.77 In con- trast, stable environments are characterized by regular cycles of activity and steady changes in supply and demand for inputs and outputs. Events are more predictable, enabling the firm to apply rules and procedures. Mechanistic structures are more efficient when the environment is predictable, so they tend to be more profitable than organic structures in these conditions.
Complex versus Simple Environments Complex environments have many elements, whereas simple environments have few things to monitor. As an example, a major university library operates in a more complex environment than a small-town public library.
Visit connect.mcgrawhill.com for activities and test questions to help you learn about the contingencies of organizational structure.
LO 13-4
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390 Part Four Organizational Processes
For more than four decades, Nucor Corporation proudly maintained a lean, flat organizational structure with only four management layers: supervisors, functional managers, plant managers, and CEO. The CEO could directly manage more than two dozen plant managers because they operated as independent businesses. Today, Nucor is America’s largest steelmaker, employing 20,000 people at more than four dozen facilities worldwide. Managing so many direct reports would overwhelm most executives, so Nucor then-CEO (now chairman) Dan DiMicco reluctantly added five executive vice presidents, creating another layer of management. “I needed to be free to make decisions on trade battles,” says DiMicco apologetically.81
The university library’s clients require several types of services—book borrowing, online full-text databases, research centers, course reserve collections, and so on. A small-town pub- lic library has fewer of these demands placed on it. The more complex the environment, the more decentralized the organization should become. Decentralization is a logical choice for complex environments, because decisions are pushed down to people and subunits with the necessary information to make informed choices.
Diverse versus Integrated Environments Organizations located in diverse en- vironments have a greater variety of products or services, clients, and regions. In contrast, an integrated environment has only one client, product, and geographic area. The more diver- sified the environment, the more the firm needs to use a divisional structure aligned with that diversity. If it sells a single product around the world, a geographic divisional structure would align best with the firm’s geographic diversity, for example.
Hostile versus Munificent Environments Firms located in a hostile environ- ment face resource scarcity and more competition in the marketplace. Hostile environ- ments are typically dynamic, because they reduce the predictability of access to resources and demand for outputs. Organic structures tend to be best in hostile environments. However, when the environment is extremely hostile—such as a severe shortage of sup- plies or lower market share—organizations tend to temporarily centralize so that deci- sions can be made more quickly and executives feel more comfortable being in control.78 Ironically, centralization may result in lower-quality decisions during organizational crises, because top management has less information, particularly when the environment is complex.
ORGANIZATIONAL SIZE Larger organizations adopt different structures than do smaller organizations, for good rea- son.79 As the number of employees increases, job specialization increases, due to the greater division of labor. The greater division of labor requires more elaborate coordinating mecha- nisms. Thus, larger firms make greater use of standardization (particularly work processes and outcomes) to coordinate work activities. These coordinating mechanisms create an ad- ministrative hierarchy and greater formalization. Historically, larger organizations make less use of informal communication as a coordinating mechanism. However, emerging informa- tion technologies and an increased emphasis on empowerment have caused informal com- munication to regain its importance in large firms.80
Larger organizations also tend to be more decentralized. Executives have neither suffi- cient time nor expertise to process all the decisions that significantly influence the business as it grows. Therefore, decision-making authority is pushed down to lower levels, where employees can make decisions about issues within their narrower range of responsibility.
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Chapter Thirteen Designing Organizational Structures 391
13-1 Describe three types of coordination in organiza- tional structures.
Organizational structure is the division of labor, as well as the patterns of coordination, communication, workflow, and formal power, that direct organizational activities. All organizational structures divide labor into distinct tasks and coordinate that labor to accomplish common goals. The primary means of coordination are informal communication, formal hierarchy, and standardization.
13-2 Discuss the role and effects of span of control, central- ization, and formalization, and relate these elements to organic and mechanistic organizational structures.
The four basic elements of organizational structure are span of control, centralization, formalization, and departmentalization. The optimal span of control—the number of people directly reporting to the next level in the hierarchy—depends on what coordinating mechanisms are present other than formal hierarchy, whether employees perform routine tasks, and how
chapter summary
TECHNOLOGY Technology is another factor to consider when designing the best organizational structure for the situation.82 Technology refers to the mechanisms or processes an organization relies on to make its products or services. In other words, technology isn’t just the equipment used to make something; it also includes how the production process is physically arranged and how the production work is divided among employees. One technological contingency is vari- ability—the number of exceptions to standard procedure that tend to occur. In work pro- cesses with low variability, jobs are routine and follow standard operating procedures. Another contingency is analyzability—the predictability or difficulty of the required work. The less analyzable the work, the more it requires experts with sufficient discretion to ad- dress the work challenges (see Chapter 6).
An organic, rather than a mechanistic, structure should be introduced when employees perform tasks with high variability and low analyzability, such as in a research setting. Em- ployees in these settings face unique situations with little opportunity for repetition. In contrast, a mechanistic structure is preferred where the technology has low variability and high analyzability, such as an assembly line. The work is routine and highly predictable, an ideal situation for a mechanistic structure to operate efficiently.
ORGANIZATIONAL STRATEGY Organizational strategy refers to the way the organization positions itself in its setting in relation to its stakeholders, given the organization’s resources, capabilities, and mission.83 In other words, strategy represents the decisions and actions applied to achieve the organiza- tion’s goals. Although size, technology, and environment influence the optimal organiza- tional structure, these contingencies do not necessarily determine structure. Instead, corporate leaders formulate and implement strategies that shape both the characteristics of these contingencies and the organization’s resulting structure.
This concept is summed up with the simple phrase, “structure follows strategy.”84 Orga- nizational leaders decide how large to grow and which technologies to use. They take steps to define and manipulate their environments, rather than let the organization’s fate be en- tirely determined by external influences. Furthermore, organizational structures don’t evolve as a natural response to environmental conditions; they result from conscious human deci- sions. Thus, organizational strategy influences both the contingencies of structure and the structure itself.
If a company’s strategy is to compete through innovation, a more organic structure would be preferred, because it is easier for employees to share knowledge and be creative. If a com- pany chooses a low-cost strategy, a mechanistic structure is preferred, because it maximizes production and service efficiency.85 Overall, it is now apparent that organizational structure is influenced by size, technology, and environment, but the organization’s strategy may re- shape these elements and loosen their connection to organizational structure.
organizational strategy
The way the organization positions itself in its setting in relation to its stakeholders, given the organization’s resources, capabilities, and mission.
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critical thinking questions 1. Valve Corporation’s organizational structure was described
at the beginning of this chapter. What coordinating mecha- nism is likely most common in this organization? Describe the extent and form in which the other two types of coordi- nation might be apparent at Valve.
2. Think about the business school or other organizational unit whose classes you are currently attending. What is the dominant coordinating mechanism used to guide or control the instructor? Why is this coordinating mechanism used the most here?
3. Administrative theorists concluded many decades ago that the most effective organizations have a narrow span of con- trol. Yet today’s top-performing manufacturing firms have a wide span of control. Why is this possible? Under what
circumstances, if any, should manufacturing firms have a narrow span of control?
4. Leaders of large organizations struggle to identify the best level and types of centralization and decentralization. What should companies consider when determining the degree of decentralization?
5. Diversified Technologies, Inc. (DTI), makes four types of products, each type to be sold to different types of clients. For example, one product is sold exclusively to automobile repair shops, whereas another is used mainly in hospitals. Expectations within each client group are surprisingly simi- lar throughout the world. The company has separate mar- keting, product design, and manufacturing facilities in Asia, North America, Europe, and South America because, until
centralization, p. 377 divisional structure, p. 381 formalization, p. 377 functional structure, p. 380 globally integrated enterprise, p. 383
matrix structure, p. 385 mechanistic structure, p. 378 network structure, p. 387 organic structure, p. 378 organizational strategy, p. 391
organizational structure, p. 370 span of control, p. 374 team-based organizational structure, p. 384
key terms
much interdependence there is among employees within the department. Centralization occurs when formal decision authority is held by a small group of people, typically senior executives. Many companies decentralize as they become larger and more com- plex, but some sections of the company may remain centralized while other sections decentralize. Formalization is the degree to which organizations standardize behavior through rules, proce- dures, formal training, and related mechanisms. Companies be- come more formalized as they get older and larger. Formalization tends to reduce organizational flexibility, organizational learn- ing, creativity, and job satisfaction. Span of control, centralization, and formalization cluster into mechanistic and organic structures. Mechanistic structures are characterized by a narrow span of control and a high degree of formalization and centralization. Companies with an organic structure have the opposite characteristics.
13-3 Identify and evaluate six types of departmentalization. Departmentalization specifies how employees and their activi- ties are grouped together. It establishes the chain of command, focuses people around common mental models, and encourages coordination through informal communication among people and subunits. A simple structure employs few people, has mini- mal hierarchy, and typically offers one distinct product or ser- vice. A functional structure organizes employees around specific knowledge or other resources. This structure fosters greater spe- cialization and improves direct supervision, but it weakens the focus on serving clients or developing products.
A divisional structure groups employees around geographic areas, clients, or outputs. This structure accommodates growth and focuses employee attention on products or customers rather than tasks. However, this structure also duplicates resources and creates silos of knowledge. Team-based structures are very flat, with low formalization, and organize self-directed teams around work processes rather than functional specialties. The matrix structure combines two structures to leverage the benefits of both types. However, this approach requires more coordination than functional or pure divisional structures, may dilute ac- countability, and increases conflict. A network structure is an alliance of several organizations for the purpose of creating a product or serving a client.
13-4 Explain the relevance of the external environment, organizational size, technology, and strategy for de- signing an organizational structure.
The best organizational structure depends on whether the en- vironment is dynamic or stable, complex or simple, diverse or integrated, and hostile or munificent. Another contingency is the organization’s size. Larger organizations need to become more decentralized and more formalized. The work unit’s technology—including variability of work and analyzability of problems—influences whether it should adopt an organic or mechanistic structure. These contingencies influence but do not necessarily determine structure. Instead, corporate leaders formulate and implement strategies that shape both the characteristics of these contingencies and the organization’s resulting structure.
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CASE STUDY: MERRITT’S BAKERY In 1979, Larry and Bobbie Merritt bought The Cake Box, a small business located in a tiny 450-foot store in Tulsa, Oklahoma. The couple were the only employees. “I would make cakes and Bobbie would come in and decorate them,” Larry recalls. Bobbie Merritt was already skilled in decorating cakes, whereas baking was a new occupation for Larry Merritt, who previously worked as a discount store manager. So, Larry spent hours pouring over baking books in the local library and testing recipes through trial-and-error experimentation. “I threw away a lot of ingredients that first year,” he recalls. Sales were initially slow. Then, a doughnut shop around the corner was put up for sale, and its owner made it possible for the Merritts to buy that business. They moved to the larger location and changed the company’s name to Merritt’s Bakery to reflect the broader variety of products sold. The Merritts hired their first two employees, who performed front-of-store sales and service. Over the next decade, Merritt’s Bakery’s physical space doubled and its revenues increased 13-fold. The company employed 20 people by the time it made its next move. In 1993, Merritt’s Bakery moved to a 6,000-foot location across the street. The business became so popular that cus- tomers were lining up down the street to buy its fresh-baked goods. “That looks like success to a lot of people, but that was failure,” says Bobbie Merritt. The problem was that the couple didn’t want to delegate production to employees, but they couldn’t produce their baked goods or decorate their carefully crafted cakes fast enough to keep up with demand. “We felt like failures because we had to work those 20 hours (per day),” she reflects. At some point, the Merritts realized that they had to be- come business owners and managers rather than bakers. They devised a plan to grow the business and drew up an organiza- tional structure that formalized roles and responsibilities. When a second Merritt’s Bakery store opened across town in 2001, each store was assigned a manager, a person in charge of baking production, another in charge of cake decorating and pastries, and someone responsible for sales. A third store opened a few years later. Larry worked on maintaining quality by training bakery staff at each store. “Because it is so difficult to find qualified bakers nowadays, I want to spend more time teaching and developing our products,” he said at the time.
Christian Merritt, one of Larry and Bobbie’s sons, joined the business in 2000 and now runs the business. An engineer by training with experience in the telecommunications in- dustry, Christian soon developed flow charts that describe precise procedures for most work activities, ranging from simple store-front tasks (cashiering) to unusual events such as a power outage. These documents standardized work ac- tivities to maintain quality with less reliance on direct super- vision. Christian also introduced computer systems to pool information across stores about how much inventory exists, which products are selling quickly, and how much demand exists for Merritt’s famous custom cakes. The information improved decision making about production, staffing, and purchasing without having to directly contact or manage each store as closely. In late 2007, Merritt’s Bakery opened a dedicated pro- duction center near the original store and moved all produc- tion staff into the building, affectionately called “the Fort.” The centralized production facility reduced costs by remov- ing duplication of staff and equipment, provided more con- sistent quality, and allowed the stores to have more front store space for customers. Merritt’s Bakery also refined its training programs, from the initial orientation session to a series for modules on spe- cific skills. For example, front-of-store staff complete a series of clinics that add up to 20 hours of training. The company also introduced special selection processes so people with the right personality and skills are hired into these jobs. Employ- ees at Merritt’s production facility receive decorator training through a graduated program over a longer time. One or two managers at the production site closely coach up to five new hires. Today, Merritt’s Bakery employs more than 80 people, in- cluding production managers, store managers, and a market- ing director. Two-thirds of the business is in the creation of cakes for birthdays, weddings, and other events, but the com- pany also has three busy and popular stores across Tulsa. “We’re just now getting the pieces in place to start to treat Merritt’s Bakery like a business, with a lot of parts that we manage from a distance,” says Christian Merritt. “We’re pres- ent but detached; we have our hands in a lot of things, but it’s in managing stores instead of operating them.”
recently, each jurisdiction had unique regulations governing the production and sales of these products. However, several governments have begun the process of deregulating the products that DTI designs and manufactures, and trade agreements have opened several markets to foreign-made products. Which form of departmentalization might be best for DTI if deregulation and trade agreements occur?
6. Mechanistic and organic structures are two organizational forms. How do the three types of coordination mechanisms operate through these forms?
7. From an employee perspective, what are the advantages and disadvantages of working in a matrix structure?
8. Suppose you have been hired as a consultant to diagnose the environmental characteristics of your college or university. How would you describe the school’s external environment? Is the school’s existing structure appropriate for this environment?
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SELF-ASSESSMENT
WHAT ORGANIZATIONAL STRUCTURE DO YOU PREFER? PURPOSE This exercise is designed to help you under- stand how an organization’s structure influences the personal needs and values of people working in that structure.
INSTRUCTIONS Personal values influence how com- fortable you are working in different organizational struc- tures. You might prefer an organization with clearly defined rules or no rules at all. You might prefer a firm where almost any employee can make important decisions or one where
important decisions are screened by senior executives. Read each statement on the next page and indicate the extent to which you would like to work in an organization with that characteristic. When finished, use the scoring key in Appen- dix B at the end of the book to calculate your results. This self- assessment should be completed alone so that you can assess yourself honestly without concerns of social comparison. Class discussion will focus on the elements of organizational design and their relationship to personal needs and values.
TEAM EXERCISE: THE CLUB ED EXERCISE Cheryl Harvey and Kim Morouney, Wilfred Laurier University
PURPOSE This exercise is designed to help you under- stand the issues to consider when designing organizations at various stages of growth.
MATERIALS Each student team should have enough overhead transparencies or flip chart sheets to display several organizational charts.
INSTRUCTIONS Each team discusses the scenario. The first scenario is presented in the following text. The instruc- tor will facilitate discussion and notify teams when to begin the next step. The exercise and debriefing require approxi- mately 90 minutes, though using fewer scenarios can reduce the time somewhat.
Step 1: Students are placed in teams (typically four or five people).
Step 2: After reading Scenario #1, each team will design an organizational chart (departmentalization) that is most appropriate for this situation. Students should be able to describe the type of structure drawn and explain why it is appropriate. The structure should be drawn on an overhead transparency or flip chart for others to see during later class discussion. The instructor will set a fixed time (e.g., 15 min- utes) to complete this task.
Scenario #1 Determined never to shovel snow again, you are establishing a new resort business on a small Caribbean island. The resort is under construction and is scheduled to open one year from now. You decide it is time to draw up an organizational chart for this new venture, called Club Ed.
Step 3: At the end of the time allowed, the instructor will present Scenario #2 and each team will be asked to draw an- other organizational chart to suit that situation. Again, stu- dents should be able to describe the type of structure drawn and explain why it is appropriate.
Step 4: At the end of the time allowed, the instructor will present Scenario #3, and each team will be asked to draw another organizational chart to suit that situation.
Step 5: Depending on the time available, the instructor might present a fourth scenario. The class will gather to pres- ent their designs for each scenario. During each presentation, teams should describe the type of structure drawn and ex- plain why it is appropriate.
Source: Adapted from C. Harvey and K. Morouney, Journal of Management Education 22 ( June 1998), pp. 425–429. Used with permission of the authors.
Discussion Questions
1. How have the division and coordination of labor evolved at Merritt’s Bakery from its beginnings to today?
2. Describe how span of control, centralization, and formal- ization have changed at Merritt’s Bakery over the years. Is the company’s organizational structure today more mech- anistic or organic? Are these three organizational struc- ture elements well-suited to the company in their current form? Why or why not?
3. What form of departmentalization currently exists at Merritt’s Bakery? Would you recommend this form of departmentalization to this company? Why or why not?
Sources: S. Cherry, “Not Without Its Merritt’s,” Tulsa World, 13 April 2001, 19; D. Blossom, “Bakery Has Recipe for Success,” Tulsa World, 28 October 2002, A7; M. Reynolds, “A Difficult Choice Pays Off for Merritt’s Bakery,” Modern Baking, March 2010, 39; “Flour Power,” Tulsa People, May 2011. Information also was collected from the company’s website, http://www. merrittsbakery.com.
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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.
Organizational Structure Preference Scale
I WOULD LIKE TO WORK IN AN ORGANIZATION WHERE . . . NOT AT ALL A LITTLE SOMEWHAT VERY MUCH SCORE
© Copyright 2000 Steven L. McShane.
1. A person’s career ladder has several steps toward
______higher status and responsibility.
2. Employees perform their work with few rules to limit
______their discretion.
3. Responsibility is pushed down to employees who
______perform the work.
4. Supervisors have few employees, so they work closely
______with each person.
5. Senior executives make most decisions to ensure that
______the company structure is consistent in its actions.
6. Jobs are clearly defined so that there is no confusion
______over who is responsible for various tasks.
7. Employees have their say on issues, but senior
______executives make most of the decisions.
8. Job descriptions are broadly stated or nonexistent. ______
9. Everyone’s work is tightly synchronized around top-
______management operating plans.
10. Most work is performed in teams without close
______supervision.
11. Work gets done through informal discussion with
______coworkers rather than through formal rules.
12. Supervisors have so many employees that they can’t
______watch anyone very closely.
13. Everyone has clearly understood goals, expectations,
______and job duties.
14. Senior executives assign overall goals but leave daily
______decisions to frontline teams.
15. Even in a large company, the CEO is only three or four
______levels above the lowest position.
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le a
rn in
g o
b je
ct iv
e s
c ha pter
After reading this chapter, you should be able to:
14-1 Describe the elements of organizational culture and discuss the importance of organizational subcultures.
14-2 List four categories of artifacts through which corporate culture is deciphered.
14-3 Discuss the importance of organizational culture and the conditions in which organizational culture strength improves organizational performance.
14-4 Compare and contrast four strategies for merging organizational cultures.
14-5 Describe five strategies for changing and strengthening an organization’s culture, including the application of attraction–selection– attrition theory.
14-6 Describe the organizational socialization process and identify strategies to improve that process.
14 Organizational Culture
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ony Hsieh woke up one workday morning with a weird realization: He didn’t want to go to work at the Internet advertising start-up company he cofounded. The company had expanded rapidly, and some of the new hires had transformed the friendly,
team-focused culture into a less desirable place. Hsieh and his cofounder sold that
company to Microsoft, and Hsieh vowed to give organizational culture more
attention at the next company he led.
That next start-up company, Zappos, has become the world’s largest online shoe
retailer and a poster child for the power of a strong organizational culture. “Our
belief is that if you get the culture right, most of the other stuff—like great customer
service, or building a great long-term brand, or passionate employees and
customers—will happen naturally on its own,” Hsieh explains.
Recruitment and selection are central to Zappos’ cultural strength. “As long as
we hire people whose personal values match our corporate values, you don’t need
to tell them how to behave,” says Hsieh. “They can just be themselves.” Job
applicants quickly learn about the online retailer’s core values—such as “Deliver
WOW through Service,” “Embrace and Drive Change,” and “Create Fun and A Little
Weirdness”—so they can decide whether the company is right for them.
Meanwhile, the company carefully selects applicants whose personal values are
aligned with the company’s values. The line manager looks for technical skills and
experience, whereas the human resource department “does a separate set of
interviews purely for culture fit,” says Hsieh. Unusual methods are sometimes
applied to estimate an applicant’s cultural fit. For example, to determine an
applicant’s humility (one of Zappos’ core values), staff ask the Zappos-hired driver
how well he or she was treated by the applicant during the drive to the company’s
headquarters.
New recruits attend a four-week customer service program that also reinforces
the company’s values and employees’ role as culture carriers. “We talk about it with
our new hires, that every single one of us is responsible for our culture,” says
Zappos, the world’s largest online shoe retailer, relies on recruitment, selection, socialization, and other practices to maintain a strong organizational culture.
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398 Part Four Organizational Processes
Zappos training manager Rachael Brown. Zappos also makes an unusual offer to the
new recruits: It will pay $2,000 in addition to their regular pay to anyone who quits
before the end of the training program. The incentive is intended to encourage new
hires to leave the company if they believe their personal values don’t fit Zappos’
culture. (Less than 1 percent have accepted the offer.) 1
Zappos has a strong organizational culture and applies several strategies we will describe in this chapter to maintain and sustain that culture throughout its meteoric growth. Organizational culture consists of the values and assumptions shared within an organization. 2 It defines what is important and unimportant in the company and, consequently, directs everyone in the organization toward the “right way” of doing things. You might think of organizational culture as the company’s DNA—invisible to the naked eye, yet a powerful template that shapes what happens in the workplace.
This chapter begins by identifying the elements of organizational culture and then de- scribing how culture is deciphered through artifacts. This is followed by a discussion of the relationship between organizational culture and performance, including the effects of cul- tural strength, fit, and adaptability. We then turn our attention to the challenges of and solutions to merging organizational cultures. The latter part of this chapter examines ways to change and strengthen organizational culture, including a closer look at the related topic of organizational socialization.
Elements of Organizational Culture Organizational culture consists of shared values and assumptions. Exhibit 14.1 illustrates how these shared values and assumptions relate to each other and are associated with artifacts, which are discussed later in this chapter. Values are stable, evaluative beliefs that guide our preferences for outcomes or courses of action in a variety of situations (see Chapters 1 and 2). 3 They are conscious perceptions about what is good or bad, right or wrong. In the context of organizational culture, values are discussed as shared values, which are values that people within the organization or work unit have in common and place near the top of their hierarchy of values. 4 For example, Zappos employees say they embrace “WOW” customer service, having fun, growth and learning, doing more with less, being humble, and a few other shared values.
Organizational culture also consists of shared assumptions —a deeper element that some experts believe is the essence of corporate culture. Shared assumptions are nonconscious, taken-for-granted perceptions or ideal prototypes of behavior that are considered the correct way to think and act toward problems and opportunities. Shared assumptions are so deeply ingrained that you probably wouldn’t discover them by surveying employees. Only by observing employees, analyzing their decisions, and debriefing them on their actions would these assumptions rise to the surface.
It has become a popular practice for leaders to identify and publicly state their organization’s shared values. For instance, Facebook, the social networking company, lists its core values as focus on impact, move fast, be bold, be open, and build social value. “There is a really great culture of empowerment here,” says a Facebook employee in Austin. “We want people to take risks and be bold and really strive to make a huge impact, because that is what the company is trying to do.” 5 New Zealand’s TrustPower has six core “PRIIDE” values: passion, respect, integrity, innovation, delivery, and empowerment. “We’re non-hierarchical, have a very flat structure and live on very few sites so we see and talk to each other a lot,” says Vince Hawksworth, CEO of the mostly hydro and wind power generation company. “People feel they can make a difference at TrustPower. We are not over-resourced and some- times we think we’re leaner than is good for us but it means everyone gets to have a go.” 6
LO 14-1
organizational culture
The values and assumptions shared within an organization.
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ESPOUSED VS. ENACTED VALUES Do these values really represent the cultural content of Facebook and TrustPower? Probably in the case of these two organizations, because their cultures are well known in their respec- tive countries and are deeply entrenched through various artifacts. However, the values statements of many organizations do not necessarily reflect the values that are widely shared and practiced in the organization. This distinction occurs because corporate leaders typically describe espoused values —the values that they want others to believe guide the organization’s decisions and actions. 7 Espoused values are usually socially desirable, so they present a posi- tive public image. Even if top management acts consistently with the espoused values, lower-level employees might not do so. Employees bring diverse personal values to the organization, some of which might conflict with the organization’s espoused values.
Organizational culture is not defined by espoused values. Instead, it consists of shared enacted values —the values that most leaders and employees truly rely on to guide their decisions and behavior. These “values-in-use” are apparent by watching executives and other employees in action, including their decisions, where they focus their attention and resources, and how they behave toward stakeholders. For example, Global Connections 14.1
Artifacts of organizational culture
Organizational culture
Physical structures
Language
Rituals and ceremonies
Stories and legends
Shared assumptions • Nonconscious, taken-for- granted beliefs. • Implicit mental models, ideal protoypes of behavior.
Shared values • Conscious beliefs. • Evaluate what is good or bad, right or wrong.
EXHIBIT 14.1 Organizational Culture Assumptions, Values, and Artifacts
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400 Part Four Organizational Processes
describes how BP’s stated (espoused) value of responsibility seems to be wildly at odds with the decisions, priorities, and behavior (enacted values) of its leaders and many employees.
What corporate culture do you prefer? Visit connect.mcgrawhill. com to assess your preference among a small set of cultures, as well as to assist your learning about organizational culture and effectiveness.
CONTENT OF ORGANIZATIONAL CULTURE Organizations differ in their cultural content, that is, the relative ordering of shared values. 9 Zappos emphasizes customer service and a team-oriented, fun environment; Netflix seems to prioritize individual performance with undertones of internal competitiveness. For in- stance, the online streaming media provider points out that “We’re a team, not a family,” that “Netflix leaders hire, develop, and cut smartly,” and that “adequate performance gets a generous severance package.” 10
How many corporate cultures are there? Several models and measures classify org- anizational culture into a handful of easy-to-remember categories. One of these, shown in Exhibit 14.2, identifies seven corporate cultures. Another popular model identifies four organizational cultures organized in a two-by-two table representing internal versus external
BP describes one of its four core values as aiming “for no accidents, no harm to people and no damage to the environment,” yet the British energy company’s track record indicates that this value is espoused, not enacted.
BP’s Espoused vs. Enacted Values BP, the British energy giant, lists four core values—progressive, responsible, innovative, and performance-driven. The company says that these values “guide us in the conduct of our busi- ness.” In other words, BP claims these four core values are enacted; they are evident in the company’s decisions, allocation of resources, and the daily behavior of its employees. Most people around the Gulf of Mexico and in Alaska would quickly dismiss those claims. In particular, BP describes its “responsibility” value as being “committed to the safety and development of our people and the communities and societies in which we operate. We aim for no accidents, no harm to people and no damage to the environment.” The energy com- pany’s track record on safety and environmentalism suggests otherwise. BP was at the center of the Gulf of Mexico oil spill, now considered the worst environmental disaster in recent history. A few months before the spill occurred, the U.S. government’s Occupational Safety and Health Administration (OSHA) penal- ized BP with the largest fine in OSHA’s history for failing to sufficiently improve safety at its Texas City refinery. Four years earlier, 15 employees died in an explosion at that refinery. A U.S. government report on that explosion concluded that BP “did not provide effective safety culture leadership.” BP’s “responsibility” value has been around for a few years, yet the company’s environmental and safety problems were well known long before the Gulf and Texas disasters. In 2003, the Norwegian government concluded that “a poor HES (Health,
Environment, and Safety) culture” contributed to a fatality on a BP oil platform. A few years earlier, a prominent newspaper con- cluded that a series of spills, accidents, and alleged hush-ups at the Alaskan operations managed by BP “raises serious questions about BP’s safety culture.” In short, being safety and environ- mentally “responsible” is an espoused value at BP, but is not likely part of the company’s current or recent culture.8
global connections 14.1
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Chapter Fourteen Organizational Culture 401
focus and flexibility versus control. Other models organize cultures around a circle with 8 or 12 categories. These circumplex models suggest that some cultures are opposite to others, such as an avoidance culture versus a self-actualization culture, or a power culture versus a collegial culture. 11
These organizational culture models and surveys are popular with corporate leaders faced with the messy business of diagnosing their company’s culture and identifying what kind of culture they want to develop. Unfortunately, they oversimplify the diversity of cultural val- ues in organizations. The fact is, there are dozens of individual values, and many more com- binations of values, so the number of organizational cultures that these models describe likely falls considerably short of the full set. A second concern is that organizational culture includes shared assumptions, not just shared values. Most organizational culture measures ignore assumptions because they represent a more subterranean aspect of culture.
A third concern is that many organizational culture models and measures incorrectly assume that organizations have a fairly clear, unified culture that is easily decipherable. 12 This “integration” perspective, as it is called, further assumes that when an organization’s culture changes, it shifts from one unified condition to a new unified condition with only temporary ambiguity or weakness during the transition. These assumptions are probably incorrect or, at best, oversimplified. An organization’s culture is usually quite blurry, so much so that it cannot be estimated through employee surveys alone. As we discuss next, organizations consist of diverse subcultures because employees across the organization have different clusters of experiences and backgrounds that have shaped their values and priori- ties. For example, after BP’s Texas refinery explosion a few years ago, an independent panel investigated the energy company’s safety culture across the United States. The panel con- cluded that a few of BP’s sites embraced the importance of safety, but most required a much stronger safety culture. 13
Even these subcultural clusters can be ill-defined because values and assumptions ulti- mately vary from one employee to the next. As long as employees differ, an organization’s culture will have noticeable variability. Thus, many of the popular organizational culture models and measures oversimplify the variety of organizational cultures and falsely presume that organizations can easily be identified within these categories.
ORGANIZATIONAL SUBCULTURES When discussing organizational culture, we are really referring to the dominant culture, that is, the values and assumptions shared most consistently and widely by the organization’s members. The dominant culture is usually supported by senior management, but cultures
EXHIBIT 14.2
Organizational Culture Profile Dimensions and Characteristics
ORGANIZATIONAL CULTURE DIMENSION CHARACTERISTICS OF THE DIMENSION
Source: Based on information in C. A. O’Reilly III, J. Chatman, and D. F. Caldwell, “People and Organizational Culture: A Profile Comparison Approach to Assessing Person-Organization Fit,” Academy of Management Journal 34, no. 3 (1991), pp. 487–518.
Innovation Experimenting, opportunity seeking, risk taking, few rules, low cautiousness
Stability Predictability, security, rule-oriented
Respect for people Fairness, tolerance
Outcome orientation Action-oriented, high expectations, results-oriented
Attention to detail Precise, analytic
Team orientation Collaboration, people-oriented
Aggressiveness Competitive, low emphasis on social responsibility
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402 Part Four Organizational Processes
Deciphering Organizational Culture Through Artifacts Shared values and assumptions are not easily measured through surveys and might not be accurately reflected in the organization’s values statements. Instead, as Exhibit 14.1 illustrated earlier, an organization’s culture needs to be deciphered through a detailed investigation of artifacts. Artifacts are the observable symbols and signs of an organization’s culture, such as the way visitors are greeted, the organization’s physical layout, and how employees are rewarded. 17 A few experts suggest that artifacts are the essence of organizational culture, whereas most others (including the authors of this book) view artifacts as symbols or indica- tors of culture. In other words, culture is cognitive (values and assumptions inside people’s heads), whereas artifacts are observable manifestations of that culture. Either way, artifacts are important because they represent and reinforce an organization’s culture.
Artifacts provide valuable evidence about a company’s culture. 18 An organization’s ambig- uous (fragmented) culture is best understood by observing workplace behavior, listening to everyday conversations among staff and with customers, studying written documents and e-mails, viewing physical structures and settings, and interviewing staff about corporate stories. In other words, to truly understand an organization’s culture, we need to sample information from a variety of organizational artifacts.
The Mayo Clinic conducted such an assessment a few years ago. An anthropologist was hired to decipher the medical organization’s culture at its headquarters in Minnesota and to identify ways of transferring that culture to its two newer sites in Florida and Arizona. For
can also persist in spite of senior management’s desire for another culture. Furthermore, organizations are composed of subcultures located throughout their various divisions, geographic regions, and occupational groups. 14 Some subcultures enhance the dominant culture by espousing parallel assumptions and values. Others differ from but do not conflict with the dominant culture. Still others are called countercultures because they embrace values or assumptions that directly oppose the organization’s dominant culture. It is also possible that some organizations (including some universities, according to one study) consist of subcultures with no decipherable dominant culture at all. 15
Subcultures, particularly countercultures, potentially create conflict and dissension among employees, but they also serve two important functions. 16 First, they maintain the organization’s standards of performance and ethical behavior. Employees who hold counter- cultural values are an important source of surveillance and critical review of the dominant order. They encourage constructive conflict and more creative thinking about how the orga- nization should interact with its environment. Subcultures potentially support ethical con- duct by preventing employees from blindly following one set of values. Subculture members continually question the “obvious” decisions and actions of the majority, thereby making everyone more mindful of the consequences of their actions.
The second function of subcultures is that they are the spawning grounds for emerging values that keep the firm aligned with the evolving needs and expectations of customers, suppliers, communities, and other stakeholders. Companies eventually need to replace their dominant values with ones that are more appropriate for the changing environment. If sub- cultures are suppressed, the organization may take longer to discover and adopt values aligned with the emerging environment.
Visit connect.mcgrawhill.com for activities and test questions to help you learn about organizational culture artifacts and cultural content.
LO 14-2
artifacts
The observable symbols and signs of an organization’s culture.
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Chapter Fourteen Organizational Culture 403
six weeks, the anthropologist shadowed employees, posed as a patient in waiting rooms, did countless interviews, and accompa- nied physicians on patient visits. The final report outlined Mayo’s dominant culture and how its satellite operations varied from that culture. 19 Over the next few pages, we review four broad categories of artifacts: organizational stories and legends, language, rituals and ceremonies, and physical structures and symbols.
ORGANIZATIONAL STORIES AND LEGENDS David Ogilvy is a legend in the advertising industry, but equally significant are the stories about him that have continued to reinforce the values that he instilled. One story recounts how Ogilvy’s board of directors arrived at a meeting to discover a Russian matryoshka doll at each of their seats. The directors opened each doll, one nested inside the other, until they discov- ered this message inside the tiniest doll: “If you hire people who are smaller than you are, we shall become a company of dwarfs. If you hire people who are bigger than you are, we shall become a company of giants.” The Russian dolls became part of Ogilvy’s culture, which demands hiring talent, not subservience. 20
Stories such as Ogilvy’s Russian dolls permeate strong orga- nizational cultures. Some tales recount heroic deeds, whereas others ridicule past events that deviate from the firm’s core values. Organizational stories and legends serve as powerful social pre- scriptions of the way things should (or should not) be done. They add human realism to corporate expectations, individual performance standards, and the criteria for getting fired. Stories also produce emotions in listeners, and these emotions tend to
improve listeners’ memory of the lesson within the story. 21 Stories have the greatest effect on communicating corporate culture when they describe real people, are assumed to be true, and are known by employees throughout the organization. Stories are also prescriptive— they advise people what to do or not to do. 22
ORGANIZATIONAL LANGUAGE The language of the workplace speaks volumes about the company’s culture. How employ- ees talk to each other, describe customers, express anger, and greet stakeholders are all verbal symbols of cultural values. The language of culture is apparent at The Container Store, where employees compliment each other about “being Gumby,” meaning that they are be- ing as flexible as the once-popular green toy to help a customer or another employee. 23 Language also highlights values held by organizational subcultures. Consultants working at Whirlpool kept hearing employees talk about the appliance company’s “PowerPoint cul- ture.” This phrase, which names Microsoft’s presentation software, implied that Whirlpool has a hierarchical culture in which communication is one-way (from executives to employees). 24
RITUALS AND CEREMONIES Rituals are the programmed routines of daily organizational life that dramatize an organiza- tion’s culture. 26 They include how visitors are greeted, how often senior executives visit sub- ordinates, how people communicate with each other, how much time employees take for lunch, and so on. These rituals are repetitive, predictable, events that have symbolic mean- ing of underlying cultural values and assumptions. For instance, BMW’s fast-paced culture
Goldman Sachs employees apparently describe large investment transactions as “elephant trades,” and the investment firm encourages its salespeople to go “elephant hunting” (seeking out these large trades from clients). The phrase is a cultural artifact, likely indicating the values of profitability and individual performance rather than customer service or value. Former Goldman Sachs’ manager Greg Smith reported that employees (particularly those in London) also routinely described their clients as muppets. “My muppet client didn’t put me in comp on the trade we just printed,” said one salesperson, meaning that the client was an idiot because he didn’t compare prices, so the salesperson overcharged him. The “muppet” label seems to reveal a culture with a derogatory view of clients. “Being a muppet meant being an idiot, a fool, manipulated by someone else,” Smith explains.25
rituals
The programmed routines of daily organizational life that dramatize the organization’s culture.
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404 Part Four Organizational Processes
is quite literally apparent in the way employees walk around the German automaker’s of- fices. “When you move through the corridors and hallways of other companies’ buildings, people kind of crawl, they walk slowly,” observes a BMW executive. “But BMW people tend to move faster.” 27 Ceremonies are more formal artifacts than rituals. Ceremonies are planned activities conducted specifically for the benefit of an audience. This would include publicly rewarding (or punishing) employees or celebrating the launch of a new product or newly won contract.
PHYSICAL STRUCTURES AND SYMBOLS Winston Churchill once said: “We shape our buildings; thereafter, they shape us.” 28 The former British Prime Minister was reminding us that buildings both reflect and influence an organization’s culture. The size, shape, location, and age of buildings might suggest a com- pany’s emphasis on teamwork, environmental friendliness, hierarchy, or any other set of values. 29 Consider Mars Inc., one of the world’s largest food manufacturers (Uncle Ben’s rice, M&M’s candy, Pedigree pet food, etc.). The privately held company’s low profile (some say secretive) culture is evident from its nondescript head offices in most countries. Mars’ head offices in the United Kingdom and Canada are buried in manufacturing plants, with only small signs indicating the company name and even less indication that the corporate chiefs are located there. Its global head office in Virginia could easily be mistaken for an upscale brick warehouse. There is no corporate identification at all, just a “private property” sign. Mars’ head office is so low profile that locals call it the Kremlin, and the chairman of Nestlé once thought he arrived at the wrong address when visiting his major competitor. 30
Even if the building doesn’t make much of a statement, there is a treasure trove of physi- cal artifacts inside. Desks, chairs, office space, and wall hangings (or lack of them) are just a few of the items that might convey cultural meaning. 31 Consider the physical artifacts that you might notice when visiting the headquarters of Mother. Housed in a converted ware- house in an artsy district of London, the United Kingdom’s largest independent creative agency has open space meeting areas, separated only by dividers made of hanging strips of opaque plastic. The top floor of Mother’s offices is one room dominated by a massive, rect- angular concrete table, around which dozens of staff work. Each of these physical artifacts alone might not say much, but put enough of them together, and you can see how they symbolize Mother’s edgy creative culture with a strong team orientation. 32
Is Organizational Culture Important? Does organizational culture improve organizational effectiveness? Ginni Rometty thinks so. “Culture is your company’s number one asset,” states the CEO of IBM. Quicken Loans CEO Bill Emerson agrees. “The No. 1 thing is culture,” he said recently, to explain why the Detroit-based finance company grew 133 percent the previous year. “It allows us to move very quickly and react very quickly in making business decisions.” 33 Many writers of popular press management books also assert that the most successful companies have strong cultures. In fact, one popular management book, Built to Last, suggests that successful companies are “cult-like” (though not actually cults, the authors are careful to point out). 34
So, are companies more effective when they have a strong culture? Possibly, but research evidence indicates that it depends on a few conditions. 35 Before discussing these contingencies, let’s examine the meaning of a “strong” organizational culture and its potential benefits. The strength of an organization’s culture refers to how widely and deeply employees hold the company’s dominant values and assumptions. In a strong organizational culture, most employees across all subunits understand and embrace the dominant values. These values and assumptions are also institutionalized through well-established artifacts, which further entrench the culture. In addition, strong cultures tend to be long-lasting; some
ceremonies
Planned displays of organizational culture, conducted specifically for the benefit of an audience.
LO 14-3
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Chapter Fourteen Organizational Culture 405
can be traced back to the values and assumptions established by the company’s founder. In contrast, companies have weak cultures when the dominant values are held mainly by a few people at the top of the organization, are barely discernible from artifacts, and are in flux.
Earlier in this chapter, we said that companies with stronger cultures are potentially more effective, and this potential occurs through the three important functions listed in Exhibit 14.3 and described below:
1. Control system . Organizational culture is a deeply embedded form of social control that influences employee decisions and behavior. 37 Culture is pervasive and operates nonconsciously. Think of it as an automatic pilot, nonconsciously directing employees so their behavior is consistent with organizational expectations. For this reason, some writers describe organizational culture as a compass that points everyone in the same direction.
2. Social glue . Organizational culture is the social glue that bonds people together and makes them feel part of the organizational experience. 38 Employees are motivated to internalize the organization’s dominant culture because it fulfills their need for social identity. This social glue attracts new staff and retains top performers. It also be- comes the common thread that holds employees together in global organizations. “The values of the company are really the bedrock—the glue which holds the firm together,” says Nandan Nilekani, the head of the government of India’s technology committee and former CEO of Infosys. 39
3. Sense making . Organizational culture helps employees make sense of what goes on and why things happen in the company. 40 Corporate culture also makes it easier for them to understand what is expected of them. For instance, research has found that sales employees in companies with stronger organizational cultures have clearer role perceptions and less role-related stress. 41
CONTINGENCIES OF ORGANIZATIONAL CULTURE AND EFFECTIVENESS Studies have found only a moderately positive relationship between culture strength and organizational effectiveness. Why is there such a weak link? The answer is that strong cultures improve organizational effectiveness only in specific conditions (see Exhibit 14.3).
• Control system
• Social glue
• Sense making
• Organizational performance
• Employee well-being
Functions of strong cultures
Organizational outcomes
Benefits of culture strength depend upon . . .
• Whether culture content fits the environment
• Moderate, not cult-like, strength
• An adaptive culture
EXHIBIT 14.3 Potential Benefits and Contingencies of Culture Strength
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Three important contingencies are whether the culture (1) is aligned with the environment, (2) is moderately strong, not cult- like, and (3) incorporates an adaptive culture.
Culture Content Is Aligned with the External Environ- ment The benefits of a strong culture depend on whether the content of that culture—its dominant values and assumptions—is aligned with the external environment. Companies require an employee- centric culture in environments where business success de- pends mainly on employee talent, whereas an efficiency-focused cul- ture may be more critical for companies in environments with strong competition and standardized products. If the dominant values are congruent with the environment, then employees are more likely to engage in behaviors that improve the organization’s interaction with that environment. But when the dominant values are misaligned with the environment, a strong culture encourages behaviors that can undermine the organization’s connection with its stakeholders.
For example, a page or two ago we noted that Coles became a successful competitor in the Australian retail food industry after it was acquired by Wesfarmers, which injected a strong culture around performance and customer service. Wesfarmers is a highly successful Australian conglomerate, but it doesn’t nurture the same culture in all of its businesses (food, hardware, fashion retailer, of- fice supplies, insurance, fertilizers, mining, and so on). Instead,
Wesfarmers ensures each company maintains a strong culture around the values that matter most for that industry and its stakeholders. “It would be a huge mistake if we tried to impose one culture over all these businesses,” Goyder explains. “Bunnings and Coles have to be customer-centric, whereas our coal business has to be absolutely focused on safety.” 42
Culture Strength Is Not the Level of a Cult A second contingency is the degree of culture strength. Various experts suggest that companies with very strong cultures (i.e., corporate “cults”) may be less effective than companies with moderately strong cultures. 43 One reason corporate cults may undermine organizational effectiveness is that they lock people into mental models, which can blind them to new opportunities and unique prob- lems. The effect of these very strong cultures is that people overlook or incorrectly define subtle misalignments between the organization’s activities and the changing environment.
The other reason very strong cultures may be dysfunctional is that they suppress dissent- ing subcultures. The challenge for organizational leaders is to maintain not only a strong culture but one that allows subcultural diversity. Subcultures encourage constructive con- flict, which improves creative thinking and offers some level of ethical vigilance over the dominant culture. In the long run, a subculture’s nascent values could become important dominant values as the environment changes. Corporate cults suppress subcultures, thereby undermining these benefits.
Culture Includes an Adaptive Culture A third factor determining whether cultural strength improves organizational effectiveness is whether the culture content in- cludes an adaptive culture . 44 Zappos, which we described at the beginning of this chapter, seems to have an adaptive culture because its culture emphasizes embracing change, creativity, open-mindedness, growth, and learning. Organizational leaders across many industries increasingly view an adaptive culture as an important ingredient for the organization’s long-term success. “At the end of the day, you have to create a culture that not only accepts change but seeks out how to change,” emphasizes General Motors CEO Dan Akerson. “It’s critically important that we inculcate that into our culture.” 45
adaptive culture
An organizational culture in which employees are receptive to change, including the ongoing alignment of the organization to its environment and continuous improvement of internal processes.
Wesfarmers Ltd., Australia’s largest conglomerate and one of the country’s most respected businesses, acquired Coles a few years ago and has since transformed the suffering food retailer into a thriving competitor. Along with injecting new investment, ideas, and leadership, Wesfarmers injected its own culture to make Coles more successful. “One of the very significant things that Wesfarmers brings (to Coles) is a very strong performance culture,” says Wesfarmers CEO Richard Goyder. Stuart Machin, one of three executives responsible for transforming Coles, agrees. “We realized one of the most important parts of the transformation plan was our people and culture,” he explains.36
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Chapter Fourteen Organizational Culture 407
What does an adaptive culture look like? Employees who embrace an adaptive culture view the organization’s survival and success in terms of ongoing adaptation to the external environment, which itself is continuously changing. They assume that their future depends on monitoring the external environment and serving stakeholders with the resources available. Thus, employees in adaptive cultures see things from an open-systems perspective and take responsibility for the organization’s performance and alignment with the external environment (see Chapter 1).
In an adaptive culture, receptivity to change extends to internal processes and roles. Employees believe that satisfying stakeholder needs requires continuous improvement of internal work processes. They also recognize the importance of maintaining flexibility in their own work roles. The phrase “That’s not my job” is found only in nonadaptive cultures. Finally, an adaptive culture has a strong learning orientation , because being receptive to change necessarily means that the company also supports action-oriented discovery. With a learning orientation, employees welcome new learning opportunities, actively experiment with new ideas and practices, view reasonable mistakes as a natural part of the learning pro- cess, and continuously question past practices (see Chapter 7). 46
debating point IS CORPORATE CULTURE AN OVERUSED PHRASE?
Corporate culture is probably one of the most frequently uttered phrases in organizations these days. That’s quite an accomplish- ment for two words that were rarely paired together prior to 1982.47 Executives say they have crafted the company’s culture to attract top talent and better serve clients. Job applicants have made organizational culture one of the top factors in their deci- sion whether to join the company. Journalists routinely blame corporate culture for business failures, deviant activities, and quirky employee conduct. This chapter offers plenty of ammunition to defend the argu- ment that organizational culture explains employee decisions and behavior. A strong culture is a control system that directs employee decisions and behavior. It is, after all, the “way we do things around here.” The underlying assumptions of a company’s culture further guide employee behavior without conscious awareness. A strong culture also serves as the company’s “social glue,” which strengthens cohesion among employees. In other words, employees in strong cultures have similar beliefs and values, which in turn increase their motivation to follow the corporate herd. Organizational culture can be a useful concept to explain workplace activities, but some OB experts argue that the phrase is overused. To begin with, corporate culture is usually presented as a singular thing within the company: one brand, one CEO, one culture. This presumption of a homogeneous culture—in which every employee understands and embraces the same few dominant values—just doesn’t exist. Every organization has a fragmented culture to varying degrees. Furthermore, many em- ployees engage in façades of conformity. They pretend to live the
company’s values but don’t actually do so because they don’t believe in them.48 Fragmentation and façades suggest that culture is not a singular force field that manipulates people like mindless robots. Instead, employees ultimately make decisions based on a variety of influences, only one of which is the organization’s shared (or espoused) values and assumptions. Another argument that indicates corporate culture is over- used to explain the workplace is that values don’t drive behavior as often as many people believe. Instead, employees turn to their values to guide behavior only when they are reminded of their values or when the situation produces fairly obvious con- flicting or questionable decisions.49 Most of the time, front-line staff perform their jobs without much thought to their values. Their decisions are usually technical rather than values-based matters. As such, corporate culture has a fairly peripheral role in the workplace. A third problem is that organizational culture is a blunt instru- ment for explaining workplace behavior and for recommending how to change those behaviors. “Fix the culture” is almost mean- ingless because the problems prompting this advice could be due to any number of artifacts. Furthermore, some problems attributed to a poor corporate culture may be due to more mundane and precise dysfunctions—unintended consequences of poorly designed rewards, ineffective leadership, misaligned corporate strategy, biased information systems, and a host of other condi- tions. Rather than blame the company’s culture, we should pay more attention to specific systems, structures, behaviors, and attitudes that explain what went wrong.
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408 Part Four Organizational Processes
ORGANIZATIONAL CULTURE AND BUSINESS ETHICS An organization’s culture influences the ethical conduct of its employees. This makes sense because good behavior is driven by ethical values, and ethical values become embedded in an organization’s dominant culture. The opposite is equally true. Consider the recent unraveling of News Corporation, the media giant that owns the New York Post , The Wall Street Journal , Fox Broadcasting, 20th Century Fox, and numerous other media around the world. Critics claim that for many years some of News Corp.’s news tabloids have had a culture that rewards aggressive, partisan, and sensationalistic tactics. This culture may have uncovered news, but it allegedly also pushed some segments of the company over the ethical line, including illegally hacking into the phones of celebrities, victims, and politicians.
Although News Corp.’s leaders claimed the problem was limited to a few deviant employees, a British parliamentary committee (among others) concluded that the wrongdoing was caused by a wayward culture that “permeated from the top throughout the organization.” As one journalist summed up the situation: “Phone hacking is done by employees within the cor- porate culture of ‘whatever it takes.’” 50 The point here is that culture and ethics go hand-in-hand. To create a more ethical organization, leaders need to work on the enacted culture that steers employee behavior.
Barclays’ chair, CEO, and other executives departed when the bank was found guilty of rigging interest rates (known as the Libor scandal). Antony Jenkins, the British bank’s incoming CEO, acted quickly to instill a new culture with higher ethical standards. In an e-mail to all 140,000 Barclays staff, Jenkins (shown here) introduced the new values (respect, integrity, service, excellence, stewardship) and warned against the bank’s tendency “to pursue short-term profits at the expense of the values and reputation of the organization.”He also gave blunt advice to those who don’t uphold Barclay’s ethical culture. “There might be some who don’t feel they can fully buy in to an approach which so squarely links performance to the upholding of our values,” Jenkins wrote. “My message to those people is simple: Barclays is not the place for you. The rules have changed. You won’t feel comfortable at Barclays and, to be frank, we won’t feel comfortable with you as colleagues.”51
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Merging Organizational Cultures 4C Corporate Culture Clash and Chemistry is a company with an unusual name and man- date. The Dutch consulting firm helps clients determine whether their culture is aligned (“chemistry”) or incompatible with (“clash”) a potential acquisition or merger partner. The firm also compares the company’s culture with its strategy. There should be plenty of demand for 4C’s expertise. One study estimated that only half of the corporate acquisitions add value, whereas two other studies report that only 30 percent of these acquisitions produce financial gains. 52 Meanwhile, mergers have a substantial disruptive effect on the organizations involved, often leading to neglected strategy, employee stress, and customer complaints.
Mergers and acquisitions fail partly because corporate leaders are so focused on the financial or marketing logistics of the merging organizations that they neglect to conduct due-diligence audits on their respective corporate cultures. 53 Some forms of integration may allow successful mergers between companies with different cultures. However, research concludes that mergers typically suffer when organizations with significantly divergent cor- porate cultures merge into a single entity with a unified strong culture. 54
LO 14-4
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Chapter Fourteen Organizational Culture 409
For example, Bank of America (BofA) hastily acquired Merrill Lynch during the great finan- cial crisis. Whereas BofA’s “Main Street” culture is about serving middle America with broad- based accessible services, Merrill Lynch had a much more exclusive culture, catering to wealthy clients. Consistent with these divergent client orientations, BofA’s culture embraces cost effi- ciencies and penny pinching, whereas Merrill Lynch had more of an “entitlement” culture that encouraged big spending and bigger bonuses. To illustrate, in spite of the company’s staggering losses during the previous year, Merrill Lynch’s CEO spent more than $1 million renovating his office, hired an executive with a $25 million signing bonus, and handed out billions in bonuses. BofA’s culture is also more cautious and bureaucratic, requiring more signatures and higher level authority, whereas Merrill Lynch’s “thundering herd” culture was more aggressive, entrepreneur- ial and, some say, more likely to venture into ethically questionable territory. 55
BICULTURAL AUDIT Organizational leaders can minimize these cultural collisions and fulfill their duty of due dili- gence by conducting a bicultural audit. 56 A bicultural audit diagnoses cultural relations be- tween the companies and determines the extent to which cultural clashes will likely occur. The bicultural audit process begins by identifying cultural differences between the merging compa- nies. Next, the bicultural audit data are analyzed to determine which differences between the two firms will result in conflict and which cultural values provide common ground on which to build a cultural foundation in the merged organization. The final stage involves identifying strategies and preparing action plans to bridge the two organizations’ cultures.
SABMiller plc and Molson Coors Brewing Company relied on a bicultural audit prior to forming their joint venture, MillerCoors. The due diligence analysis revealed that the two companies had different working styles but similar employee goals. The bicultural audit also helped SABMiller and Molson Coors executives discover cultural differences and thereby anticipate potential culture clashes in the joint venture. 57
STRATEGIES FOR MERGING DIFFERENT ORGANIZATIONAL CULTURES In some cases, the bicultural audit results in a decision to end merger talks because the two cultures are too different to merge effectively. However, even with substantially different cultures, two companies may form a workable union if they apply the appropriate merger strategy. The four main strategies for merging different corporate cultures are assimilation, deculturation, integration, and separation (see Exhibit 14.4). 58
bicultural audit
A process of diagnosing cultural relations between companies and determining the extent to which cultural clashes will likely occur.
MERGER STRATEGY DESCRIPTION WORKS BEST WHEN:
EXHIBIT 14.4 Strategies for Merging Different Organizational Cultures
Sources: Based on ideas in A. R. Malekzedeh and A. Nahavandi, “Making Mergers Work by Managing Cultures,” Journal of Business Strategy, 11 (May–June 1990), pp. 55–57; K. W. Smith, “A Brand-New Culture for the Merged Firm,” Mergers and Acquisitions, 35 (June 2000), pp. 45–50.
Assimilation Acquired company embraces Acquired firm has a weak culture. acquiring firm’s culture.
Deculturation Acquiring firm imposes its culture on Rarely works—may be necessary only when unwilling acquired firm. acquired firm’s culture doesn’t work but employees don’t realize it.
Integration Merging companies combine the two or Existing cultures can be improved. more cultures into a new composite culture.
Separation Merging companies remain distinct entities Firms operate successfully in different with minimal exchange of culture or businesses requiring different cultures. organizational practices.
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Assimilation Assimilation occurs when employees at the acquired company willingly embrace the cultural values of the acquiring organization. Typically, this strategy works best when the acquired company has a weak, dysfunctional culture and the acquiring company’s culture is strong and aligned with the external environment. The cultural assimilation strat- egy seldom produces cultural clashes, because the acquiring firm’s culture is highly respected, and the acquired firm’s culture is either weak or relatively similar to the other culture.
Deculturation Assimilation is rare. Employees usually resist organizational change, particularly when they are asked to throw away personal and cultural values. Under these conditions, some acquiring companies apply a deculturation strategy by imposing their cul- ture and business practices on the acquired organization. The acquiring firm strips away artifacts and reward systems that support the old culture. People who cannot adopt the ac- quiring company’s culture often lose their jobs. Deculturation may be necessary when the acquired firm’s culture doesn’t work, even when employees in the acquired company aren’t convinced of this. However, this strategy is difficult to apply effectively, because the acquired firm’s employees resist the cultural intrusions from the buying firm, thereby delaying or undermining the merger process.
Integration A third strategy is to combine the two or more cultures into a new com- posite culture that preserves the best features of the previous cultures. Integration is slow and potentially risky because there are many forces preserving the existing cultures. Still, this strategy should be considered when the companies have relatively weak cultures or when their cultures include several overlapping values. Integration also works best when people realize that their company’s existing culture is ineffective, which motivates them to adopt a new set of dominant values.
Separation A separation strategy occurs when the merging companies agree to remain distinct entities with minimal exchanges of culture or organizational practices. This strategy is most appropriate when the two merging companies are in unrelated industries or operate in different countries, because the most appropriate cultural values tend to differ by industry and national culture. This strategy is also relevant advice for the corporate cultures of diversified conglomerates. A cultural separation approach is rare, however. Executives
Southwest Airlines has maintained a strong customer-focused and fun-loving culture as it grew to become America’s largest airline for domestic travel. But most of that growth occurred organically, whereas cultural assimilation practices were needed to assimilate employees at recently acquired AirTran Airways into the “Southwest Way.” AirTran Airways executive vice president and chief commercial officer Bob Jordan believes the success and popularity of Southwest’s culture has assisted this assimilation process. “It’s helpful that Southwest has a great cultural reputation,” says Jordan.55
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Chapter Fourteen Organizational Culture 411
in acquiring firms usually have difficulty keeping their hands off the acquired firm. According to one estimate, only 15 percent of mergers leave the acquired company as a stand-alone unit. 59
Changing and Strengthening Organizational Culture Is it possible to change an organization’s culture? Yes, but doing so isn’t easy, the change rarely occurs quickly, and often the culture ends up changing (or replacing) corporate lead- ers. A few experts argue that an organization’s culture “cannot be managed,” so attempting to change the company’s values and assumptions is a waste of time. 60 This may be an ex- treme view, but organizational culture experts generally agree that changing an organiza- tion’s culture is a monumental challenge. At the same time, the external environment changes over time, so organizations need to shift their culture to maintain alignment with the emerging environment.
Over the next few pages, we will highlight five strategies that have had some success at altering corporate cultures. These strategies, illustrated in Exhibit 14.5, are not exhaustive, but each seems to work well under the right circumstances.
ACTIONS OF FOUNDERS AND LEADERS An organization’s culture begins with its founders and leaders. 61 You can see how leader- ship has influenced the organizational culture of Zappos, which we described at the beginning of this chapter. Tony Hsieh (originally an investor, and later CEO) paid close attention to the company’s values, which reflected his and the company’s founders values. The importance of leaders on culture was explained in the discussion of transformational leadership as well as authentic leadership in Chapter 12. In each of those models, leaders base their words and actions on personal values, and those values potentially become a reflection of the organization’s values. However, arguably the most influential leader in an
LO 14-5
Actions of founders and
leaders
Use attraction, selection, and
socialization for cultural “fit”
Support workforce
stability and communication
Introduce culturally consistent rewards/recognition
Align artifacts with the
desired culture
Changing and
Strengthening
Organizational
Culture
EXHIBIT 14.5
Strategies for Changing and Strengthening Organizational Culture
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412 Part Four Organizational Processes
organization’s culture is the company founder. Founders form their organization’s culture during its early stages and introduce ways to make that culture “stick.” 62 They are often visionaries who provide a powerful role model for others to follow. The company’s culture sometimes reflects the founder’s personality, and this cultural imprint can remain with the organization for decades. The founder’s activities are later retold as organizational stories to further reinforce the culture.
However, as Tony Hsieh discovered at an earlier company he cofounded, an organiza- tion’s culture can drift away from the founder’s values, so leaders must continuously moni- tor and reinforce the desired values. This advice was recently echoed by Bill Emerson, CEO of Quicken Loans. “If you don’t spend time to create a culture in your organization, one will create itself,” warns Emerson. “And the one that creates itself is probably not going to be good.” 63
ALIGN ARTIFACTS WITH THE DESIRED CULTURE Artifacts represent more than just the visible indicators of a company’s culture. They are also mechanisms that keep the culture in place or shift the culture to a new set of values and assumptions. As we discuss in the next chapter on organizational change, systems and struc- tures are powerful mechanisms to support the desired state of affairs. These systems and structures are artifacts, such as the workplace layout, reporting structure, office rituals, type of information distributed, and language that is reinforced or discouraged. Corporate cultures are also altered and strengthened through the artifacts of stories and behaviors. According to Max De Pree, former CEO of furniture manufacturer Herman Miller Inc., every organization needs “tribal storytellers” to keep the organization’s history and culture alive. 64 Leaders play a role by creating memorable events that symbolize the cultural values they want to develop or maintain.
INTRODUCE CULTURALLY CONSISTENT REWARDS AND RECOGNITION Reward systems and informal recognition practices are artifacts, but they deserve separate discussion because of their powerful effect on strengthening or reshaping an organization’s culture. 65 For example, to change Home Depot’s freewheeling culture, Robert Nardelli introduced precise measures of corporate performance and drilled managers with weekly performance objectives related to those metrics. A two-hour weekly conference call became a ritual in which Home Depot’s top executives were held accountable for the previous week’s goals. These actions reinforced a more disciplined (and centralized) performance-oriented culture. 66
SUPPORT WORKFORCE STABILITY AND COMMUNICATION An organization’s culture is embedded in the minds of its em- ployees. Organizational stories are rarely written down; rituals and ceremonies do not usually exist in procedure manuals; or- ganizational metaphors are not found in corporate directories. Thus, a strong culture depends on a stable workforce. Work- force stability is also important because it takes time for em- ployees to fully understand the organization’s culture and how to enact it in their daily work lives. The organization’s culture can literally disintegrate during periods of high turnover and precipitous downsizing, because the corporate memory leaves with these employees. Along with workforce stability, a strong
Credit: Copyright © Randy Glasbergen, www.glasbergen.com. Reprinted with permision.
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Chapter Fourteen Organizational Culture 413
organizational culture depends on a workplace where employees regularly communicate with each other. This ongoing communication enables employees to develop a shared language, stories, and other artifacts.
Workforce stability and communication are key reasons Zappos has a strong culture. The online shoe and apparel company maintains a low rate of employee turnover due to an award-winning supportive work environment. Department managers regularly engage in team-building activities. The company holds frequent meetings and events with all staff (sometimes even shutting down the call center), so employees can talk with each other and experience their shared values. Zappos even designed its new head office (a former Las Vegas city hall) so employees necessarily intermingle with coworkers from other departments.
USE ATTRACTION, SELECTION, AND SOCIALIZATION FOR CULTURAL “FIT” The opening case study to this chapter emphasized that the most important strategy to maintain a strong corporate culture at Zappos is attracting and selecting applicants whose values fit the company’s culture, and to provide further cultural socialization to the new hires. This process, along with weeding out people who don’t fit the culture, is explained by attraction-selection-attrition (ASA) theory . 67 ASA theory states that organizations have a
attraction-selection-attrition
(ASA) theory
A theory which states that organizations have a natural tendency to attract, select, and retain people with values and personality characteristics that are consistent with the organization’s character, resulting in a more homogeneous organization and a stronger culture.
of 1,500 American job seekers polled wanted to know, during the hiring process, about the company’s culture.
%58
Organizational Culture During the Hiring Process73
of Fortune 500
companies say they
take steps to describe
their corpo rate culture
to job seek ers.
44 %of 500 Canadian executives polled say cultural fit is more important
than skills for selecting external candidates.
75
23% of 170,000 employees surveyed across 30 countries identified corporate culture as the top consideration when deciding to apply for a job.
%
of 2,303 American hiring managers
surveyed say they search social
network sites to determine if the job
candidate is a good fit for the company’s culture.
51%
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414 Part Four Organizational Processes
Organizational Socialization Along with their use of attraction, selection, and attrition, organizations rely on organiza- tional socialization to maintain a strong corporate culture. Organizational socialization is the process by which individuals learn the values, expected behaviors, and social knowledge necessary to assume their roles in the organization. 74 This process can potentially change employee values to become more aligned with the company’s culture. However, changing an employee’s personal values is much more difficult than is often assumed, because values are fairly stable past an individual’s young adulthood. More likely, effective socialization gives newcomers clearer understanding about the company’s values and how they translate into specific on-the-job behaviors. 75
Along with supporting the organization’s culture, socialization helps newcomers adjust to coworkers, work procedures, and other corporate realities. Research indicates that when employees are effectively socialized into the organization, they tend to perform better, have higher job satisfaction, and remain longer with the organization. 76
natural tendency to attract, select, and retain people with values and personality characteris- tics that are consistent with the organization’s character, resulting in a more homogeneous organization and a stronger culture.
• Attraction. Job applicants engage in self-selection by avoiding employment in companies whose values seem incompatible with their own values. 68 They look for subtle artifacts during interviews and through public information that commu- nicate the company’s culture. Some organizations encourage this self-selection by actively describing their cultures. At Reckitt Benckiser, for instance, applicants can complete an online simulation that estimates their fit with the British household products company’s hard-driving culture. Participants indicate how they would respond to a series of business scenarios. The exercise then calculates their cultural fit score and asks them to decide whether to continue pursuing employment with the company. 69
• Selection. How well the person “fits” in with the company’s culture is often a factor in deciding which job applicants to hire. Companies with strong cultures often put ap- plicants through several interviews and other selection tests, in part to better gauge the applicant’s values and their congruence with the company’s values. 70 At Strange- loop Networks, for example, job applicants are assessed by several employees, not just by the founders. “It is a good feeling to be involved in the hiring process,” says a software developer at the company in Vancouver, Canada. “I think I feel about the culture the same way the CEO of the company does. It will grow the same way everyone here feels and wants it to.” 71
• Attrition. People are motivated to seek environments that are sufficiently congruent with their personal values and to leave environments that are a poor fit. This occurs because person–organization values congruence supports their social identity and minimizes internal role conflict. Even if employees aren’t forced out, many quit when values incongruence is sufficiently high. 72
Visit connect.mcgrawhill.com for activities and test questions to help you learn about organizational socialization.
LO 14-5
organizational socialization
The process by which individuals learn the values, expected behaviors, and social knowledge necessary to assume their roles in the organization.
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Chapter Fourteen Organizational Culture 415
ORGANIZATIONAL SOCIALIZATION AS A LEARNING AND ADJUSTMENT PROCESS Organizational socialization is a process of both learning and adjustment. It is a learning process because newcomers try to make sense of the company’s physical workplace, social dynamics, and strategic and cultural environment. They learn about the organization’s per- formance expectations, power dynamics, corporate culture, company history, and jargon. They also need to form successful and satisfying relationships with other people from whom they can learn the ropes. 77 Thus, effective socialization enables new employees to form a cognitive map of the physical, social, and strategic and cultural dynamics of the organization without experiencing information overload.
Organizational socialization is also an adjustment process because individuals need to adapt to their new work environment. They develop new work roles that reconfigure their social identity, adopt new team norms, and practice new behaviors. 78 The adjustment pro- cess is fairly rapid for many people, usually occurring within a few months. However, new- comers with diverse work experience seem to adjust better than those with limited previous experience, possibly because they have a larger toolkit of knowledge and skills to make the adjustment possible. 79
ORGANIZATIONAL SOCIALIZATION AND PSYCHOLOGICAL CONTRACTS For 14 years, John Kolliopoulos was a loyal employee at a major department store chain. The information technology (IT) expert was proud to be employed there, and he worked hard to perform his job. Then, one day, he and other IT department employees learned that management had outsourced the entire IT department. “All those feelings of loyalty went away when we were shown the door,” recalls Kolliopoulos, who now works for an IT com- pany. “Now I no longer have any sense of faith or trust in any employer.” 80
John Kolliopoulos and his coworkers experienced the shock of having their psycho- logical contract violated. The psychological contract refers to the individual’s beliefs about the terms and conditions of a reciprocal exchange agreement between that person and another party (the employer, in most work situations). The psychological contract is a perception formed during recruitment and throughout the organizational socialization process about what the employee is entitled to receive and is obliged to offer the em- ployer in return. 81
Job applicants form perceptions of what the company will offer them by way of career and learning opportunities, job resources, pay and benefits, quality of management, job security, and so forth. They also form perceptions about what the company expects from them, such as hours of work, continuous skill development, and demonstrated loyalty. For example, John Kolliopoulos believed that his psychological contract included long- term employment in return for hard work and loyalty to his employer. The psychological contract continues to develop and evolve after job applicants become employees, but they are also continuously testing the employer’s fulfillment of that exchange relationship.
Types of Psychological Contracts Some psychological contracts are more trans- actional, whereas others are more relational. 82 Transactional contracts are primarily short- term economic exchanges. Responsibilities are well defined around a fairly narrow set of obligations that do not change over the life of the contract. People hired in temporary positions and as consultants tend to have transactional contracts. To some extent, new employees also form transactional contracts until they develop a sense of continuity with the organization. Relational contracts, on the other hand, are rather like marriages; they are long-term at- tachments that encompass a broad array of subjective mutual obligations. Employees with a
psychological contract
The individual’s beliefs about the terms and conditions of a reciprocal exchange agreement between that person and another party (typically an employer).
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416 Part Four Organizational Processes
relational psychological contract are more willing to contribute their time and effort without expecting the organization to pay back this debt in the short term. Relational contracts are also dynamic, meaning that the parties tolerate and expect that mutual obligations are not necessarily balanced in the short-run. Not surprisingly, organizational citizenship behaviors are more likely to prevail under relational than transactional contracts. Permanent employ- ees are more likely to believe they have a relational contract.
STAGES OF ORGANIZATIONAL SOCIALIZATION Organizational socialization is a continuous process, beginning long before the first day of employment and continuing throughout one’s career within the company. However, it is most intense when people move across organizational boundaries, such as when they first join a company or get transferred to an international assignment. Each of these transitions is a process that can be divided into three stages. Our focus here is on the socialization of new employees, so the three stages are called pre-employment socialization, encounter, and role management (see Exhibit 14.6). These stages parallel the individual’s transition from outsider to newcomer and then to insider. 83
Stage 1: Pre-Employment Socialization Think back to the months and weeks before you began working in a new job (or attending a new school). You actively searched for information about the company, formed expectations about working there, and felt some anticipation about fitting into that environment. The pre-employment social- ization stage encompasses all the learning and adjustment that occurs before the first day of work. In fact, a large part of the socialization adjustment process occurs during this stage. 84
The main problem with pre-employment socialization is that outsiders rely on indi- rect information about what it is like to work in the organization. This information is often distorted by inherent conflicts during the mating dance between employer and applicant. 85 One conflict occurs between the employer’s need to attract qualified appli- cants and the applicant’s need for complete information to make accurate employment decisions. Many firms use a “flypaper” approach, describing only positive aspects of the job and company, which causes applicants to accept job offers from incomplete or false expectations. Another conflict that prevents the accurate exchange of information occurs when applicants avoid asking important questions about the company because they want to convey a favorable image to their prospective employer. For instance, applicants usu- ally don’t like to ask about starting salaries and promotion opportunities because it
Preemployment Socialization
(Outsider)
• Learn about the organization and job
• Form employment relationship expectations
Encounter (Newcomer)
• Test expectations against perceived realities
Role Management
(Insider)
• Strengthen work relationships
• Practice new role behaviors
• Resolve work–nonwork conflicts
Socialization Outcomes
• Higher motivation
• Higher loyalty
• Higher satisfaction
• Lower stress
• Lower turnover
EXHIBIT 14.6 Stages of Organizational Socialization
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Chapter Fourteen Organizational Culture 417
makes them seem greedy or aggressive. Yet unless the employer provides this informa- tion, applicants might fill in the missing details with false assumptions that produce an inaccurate psychological contract.
Two other types of conflict tend to distort pre-employment information for employers. Applicants engage in impression management when seeking employment, and this tends to motivate them to hide negative information, act out of character, and occasionally embellish information about their past accomplishments. At the same time, employers are sometimes reluctant to ask certain questions or use potentially valuable selection devices because they might scare off applicants. Unfortunately, exaggerated résumés from applicants and reluc- tance to ask for more delicate information causes employers to form a less accurate opinion of the job candidate’s potential as an employee.
Stage 2: Encounter The first day on the job typically marks the beginning of the encounter stage of organizational socialization. This is the stage in which newcomers test how well their pre-employment expectations fit reality. Many companies fail the test, result- ing in reality shock —the stress that results when employees perceive discrepancies between their pre-employment expectations and on-the-job reality. 86 Reality shock doesn’t necessarily occur on the first day; it might develop over several weeks or even months as newcomers form a better understanding of their new work environment.
Reality shock is common in many organizations. 87 Unmet expectations sometimes occur because the employer is unable to live up to its promises, such as failing to provide challeng- ing projects or the resources to get the work done. Reality shock also occurs because new hires develop distorted work expectations through the information exchange conflicts de- scribed above. Whatever the cause, reality shock impedes the socialization process because the newcomer’s energy is directed toward managing the stress rather than learning and ac- cepting organizational knowledge and roles. 88
Stage 3: Role Management Role management, the third stage of organizational socialization, really begins during pre-employment socialization, but it is most active as employees make the transition from newcomers to insiders. They strengthen relation- ships with coworkers and supervisors, practice new role behaviors, and adopt attitudes and values consistent with their new positions and the organization. Role management also involves resolving the conflicts between work and nonwork activities, including re- solving discrepancies between their personal values and those emphasized by the organi- zational culture.
IMPROVING THE SOCIALIZATION PROCESS One potentially effective way to improve the socialization process is through a realistic job preview (RJP) —a balance of positive and negative information about the job and work context. 89 Unfortunately, as mentioned earlier, many companies overpromise. They often exaggerate positive features of the job and neglect to mention the undesirable
elements in the hope that the best applicants will get “stuck” on the organization.
In contrast, an RJP helps job applicants decide for themselves whether their skills, needs, and values are com- patible with the job and organization. Although RJPs scare away some applicants, they also tend to reduce turnover and increase job performance. 90 This occurs because RJPs help applicants develop more accurate pre-employment expectations, which minimize reality shock. The RJPs rep- resent a type of vaccination, by preparing employees for
reality shock
The stress that results when employees perceive discrepancies between their pre-employment expectations and on-the-job reality.
realistic job preview (RJP)
A method of improving organizational socialization in which job applicants are given a balance of positive and negative information about the job and work context.
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the more challenging and troublesome aspects of work life. There is also some evidence that RJPs increase organizational commitment. A possible explanation is that companies provid- ing candid information are easier to trust. They also show respect for the psychological contract and concern for employee welfare. 91
Socialization Agents Ask new employees what most helped them adjust to their jobs, and chances are they will mention helpful coworkers, bosses, or maybe even friends who work elsewhere in the organization. The fact is, socialization occurs mainly through these socialization agents. 93 Supervisors tend to provide technical information, performance feedback, and information about job duties. They also improve the socialization process by giving newcomers reasonably challenging first assignments, buffering them from excessive demands, helping them form social ties with coworkers, and generating positive emotions around their new work experience. 94
Coworkers are important socialization agents because they are easily accessible, can answer questions when problems arise, and serve as role models for appropriate behavior. New employees tend to receive this information and support when coworkers welcome them into the work team. Coworkers also aid the socialization process by being flexible and tolerant in their interactions with new hires.
Several organizations rely on a “buddy system,” whereby newcomers are assigned to coworkers as sources of information and social support. Meridian Technology Centre in Stillwater, Oklahoma, has a buddy system in the socialization of new staff members. Buddies introduce new hires to other employees, give them campus tours, and generally familiarize them with the physical layout of the workplace. They have lunch with employees on their first day and meet weekly with them for their first two months. Cxtec, the networking and voice technology company in Syracuse, New York, helps new staff meet other employees through food. On the first Friday of each month, new staff members take charge of the doughnut cart, introducing themselves as they distribute the morning snack to the company’s 350 employees. 95 Collectively, these practices help newcomers form social networks, which are powerful means of gaining information and influence in the organization.
Facebook has expanded worldwide as its popularity has increased. To maintain its unique culture. the social media company dispatches a “landing team” of current employees to each new site. The main objective of the landing teams is “a transfer of knowledge and of culture to make sure we’re spreading our own unique Facebook culture in different offices around the world,” says a landing team member who opened the office in Hyderabad, India. The landing team carefully selects applicants for their compatibility with that culture and coaches newcomers on the Facebook way of life.92
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14-1 Describe the elements of organizational culture and discuss the importance of organizational subcultures.
Organizational culture consists of the values and assumptions shared within an organization. Shared assumptions are noncon- scious, taken-for-granted perceptions or beliefs that have worked so well in the past that they are considered the correct way to think and act toward problems and opportunities. Values are sta- ble, evaluative beliefs that guide our preferences for outcomes or courses of action in a variety of situations. Organizations differ in their cultural content, that is, the rel- ative ordering of values. There are several classifications of orga- nizational culture, but they tend to oversimplify the wide variety of cultures and completely ignore the underlying assumptions of culture. Organizations have subcultures as well as the dominant culture. Subcultures maintain the organization’s standards of performance and ethical behavior. They are also the source of emerging values that replace misaligned core values.
14-2 List four categories of artifacts through which corpo- rate culture is deciphered.
Artifacts are the observable symbols and signs of an organiza- tion’s culture. Four broad categories of artifacts include organiza- tional stories and legends, rituals and ceremonies, language, and physical structures and symbols. Understanding an organiza- tion’s culture requires the assessment of many artifacts, because they are subtle and often ambiguous.
14-3 Discuss the importance of organizational culture and the conditions under which organizational culture strength improves organizational performance.
Organizational culture has three main functions: a form of social control, the “social glue” that bonds people together, and a way to help employees make sense of the workplace. Companies with strong cultures generally perform better than those with weak cultures, but only when the cultural content is appropriate for the organization’s environment. Also, the culture should not be so strong that it drives out dissenting values, which may form emerging values for the future. Organizations should have adap- tive cultures so that employees support ongoing change in the organization and their own roles.
14-4 Compare and contrast five strategies for merging organizational cultures.
Organizational culture clashes are common in mergers and acquisitions. This problem can be minimized by performing a
bicultural audit to diagnose the compatibility of the organiza- tional cultures. The four main strategies for merging different corporate cultures are integration, deculturation, assimilation, and separation.
14-5 Describe five strategies for changing and strengthen- ing an organization’s culture, including the applica- tion of attraction-selection-attrition theory.
An organization’s culture begins with its founders and leaders, because they use personal values to transform the organiza- tion. The founder’s activities are later retold as organizational stories. Companies also introduce artifacts as mechanisms to maintain or change the culture. A related strategy is to intro- duce rewards and recognition practices that are consistent with the desired cultural values. A fourth method to change and strengthen an organization’s culture is to support work- force stability and communication. Stability is necessary be- cause culture exists in employees. Communication activities improve sharing of the culture. Finally, companies strengthen and change their culture by attracting and selecting applicants with personal values that fit the company’s culture, by encour- aging those with misaligned values to leave the company, and by engaging in organizational socialization—the process by which individuals learn the values, expected behaviors, and social knowledge necessary to assume their roles in the organization.
14-6 Describe the organizational socialization process and identify strategies to improve that process.
Organizational socialization is the process by which individuals learn the values, expected behaviors, and social knowledge neces- sary to assume their roles in the organization. It is a process of both learning and adjustment. During this process, job appli- cants and newcomers develop and test their psychological contract—personal beliefs about the terms and conditions of a reciprocal exchange agreement between that person and another party (the employer). Employees typically pass through three socialization stages: pre-employment, encounter, and role management. To manage the socialization process, organizations should introduce realistic job previews (RJPs) and recognize the value of socialization agents in the process. These RJPs give job applicants a realistic balance of positive and negative information about the job and work context. Socialization agents provide information and so- cial support during the socialization process.
chapter summary
adaptive culture, p. 406 artifacts, p. 402 attraction-selection-attrition (ASA) theory, p. 413
bicultural audit, p. 409 ceremonies, p. 404 organizational culture, p. 398 organizational socialization, p. 414
psychological contract, p. 415 realistic job preview (RJP), p. 417 reality shock, p. 417 rituals, p. 403
key terms
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critical thinking questions
CASE STUDY: HILLTON’S TRANSFORMATION Twenty years ago, Hillton was a small city (about 70,000 res- idents) that served as an outer suburb to a large metropolitan city. Hillton treated city employees like family and gave them a great deal of autonomy in their work. Everyone in the orga- nization (including the two labor unions representing em- ployees) implicitly agreed that the leaders and supervisors of the organization should rise through the ranks based on their experience. Few people were ever hired from the outside into middle or senior positions. The rule of employment at Hillton was to learn the job skills, maintain a reasonably good work record, and wait your turn for promotion. As Hillton’s population grew, so did the city’s workforce, to keep pace with the increasing demand for municipal ser- vices. This meant that employees were promoted fairly quickly and were almost assured lifetime employment. Until recently, Hillton had never laid off any employee. The orga- nization’s culture could be described as one of entitlement and comfort. Neither the elected city councilors nor the city manager bothered departmental managers about their work. There were few cost controls, because the rapid growth placed more emphasis on keeping up with the population ex- pansion. The public became somewhat more critical of the city’s poor service, including road construction at inconve- nient times and the apparent lack of respect some employees showed toward taxpayers.
During these expansion years, Hillton put most of its money into “outside” (also called “hard”) municipal services. These included road building, utility construction and main- tenance, fire and police protection, recreational facilities, and land use control. This emphasis occurred because an expand- ing population demanded more of these services, and most of Hillton’s senior people came from the outside services group. For example, Hillton’s city manager for many years was a road development engineer. The “inside” workers (taxation, community services, etc.) tended to have less seniority, and their departments were given less priority. As commuter and road systems developed, Hillton at- tracted more upwardly mobile professionals into the com- munity. Some infrastructure demands continued, but now these suburban dwellers wanted more of the “soft” services, such as libraries, social activities, and community services. They also began complaining about the way the munici- pality was being run. The population had more than tri- pled between the 1960s and 1990s, and it was increasingly apparent that the organization needed more corporate planning, information systems, organization development, and cost control systems. In various ways, residents voiced their concerns that the municipality was not providing the quality of management that they would expect from a city of its size.
1. Superb Consultants has submitted a proposal to analyze your organization’s culture. The proposal states that Superb has developed a revolutionary new survey to tap the compa- ny’s true culture. The survey takes just 10 minutes to com- plete, and the consultants say results can be based on a small sample of employees. Discuss the merits and limitations of this proposal.
2. Some people suggest that the most effective organizations have the strongest cultures. What do we mean by the “strength” of organizational culture, and what possible problems are there with a strong organizational culture?
3. The CEO of a manufacturing firm wants everyone to sup- port the organization’s dominant culture of lean efficiency and hard work. The CEO has introduced a new reward sys- tem to reinforce this culture and personally interviews all professional and managerial applicants to ensure that they bring similar values to the organization. Some employees who criticized these values had their careers sidelined until they left. Two midlevel managers were fired for supporting contrary values, such as work–life balance. Based on your knowledge of organizational subcultures, what potential problems is the CEO creating?
4. Identify at least two artifacts you have observed in your department or school from each of the four broad catego- ries: (a) organizational stories and legends, (b) rituals and
ceremonies, (c) language, (d) physical structures and symbols.
5. “Organizations are more likely to succeed when they have an adaptive culture.” What can an organization do to foster an adaptive culture?
6. Suppose you are asked by senior officers of a city govern- ment to identify ways to reinforce a new culture of team- work and collaboration. The senior executive group clearly supports these values, but it wants everyone in the organiza- tion to embrace them. Identify four types of activities that would strengthen these cultural values.
7. Is it possible to have a knowledge of what an organizational culture is before you become a part of the organization? How important is it for you to align yourself with your organizational culture?
8. Socialization is most intense when people pass through organizational boundaries. One example is your entry into the college or university that you are now attending. What learning and adjustment occurred as you moved from outsider to newcomer to insider as a student here?
9. In Chapter 2, we discussed “values across cultures,” includ- ing individualism, collectivism, power distance, uncertainty avoidance, and achievement orientation. How are these national cultures different from and similar to an organiza- tion’s culture?
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TEAM EXERCISE: ORGANIZATIONAL CULTURE METAPHORS By David L. Luechauer , Butler University and Gary M. Shulman , Miami University
will provide 15 to 20 minutes for teams to determine which words best describe the college’s culture.
If our school was an animal, it would be a __________ because __________. If our school was a food, it would be __________ because __________. If our school was a place, it would be __________ because __________. If our school was a season, it would be __________ because __________. If our school was a TV show or movie, it would be __________ because __________.
Step 3: The class will listen to each team present the meta- phors that it believes symbolizes the school’s culture. For ex- ample, a team that picks winter for a season might mean they are feeling cold or distant about the school and its people.
Step 4: The class will discuss the discussion questions stated next.
PURPOSE Both parts of this exercise are designed to help you understand, assess, and interpret organizational culture using metaphors.
PART A: ASSESSING YOUR SCHOOL’S CULTURE
Instructions A metaphor is a figure of speech that con- tains an implied comparison between a word or phrase that is ordinarily used for one thing but can be applied to another. Metaphors also carry a great deal of hidden meaning; they say a lot about what we think and feel about that object. There- fore, this activity asks you to use several metaphors to define the organizational culture of your university, college, or insti- tute. (Alternatively, the instructor might ask students to assess another organization that most students know about.)
Step 1: The class will be divided into teams of four to six members.
Step 2: Each team will reach consensus on which words or phrases should be inserted in the blanks of the statements pre- sented next. This information should be recorded on a flip chart or overhead acetate for class presentation. The instructor
A few years ago, a new mayor and council replaced most of the previous incumbents, mainly on the platform of improving the municipality’s management structure. The new council gave the city manager, along with two other senior managers, an early retirement buyout package. Rather than promoting from the lower ranks, council decided to fill all three positions with qualified candidates from large municipal corporations in the region. The following year, several long-term managers left Hillton, and at least half of those positions were filled by peo- ple from outside the organization. In less than two years, Hillton had eight senior or depart- mental managers hired from other municipalities who played a key role in changing the organization’s value system. These eight managers became known (often with negative connota- tions) as the “professionals.” They worked closely with one another to change the way middle- and lower-level managers had operated for many years. They brought in a new com- puter system and emphasized cost controls where managers previously had complete autonomy. Promotions were in- creasingly based more on merit than seniority. The “professionals” frequently announced in meetings and newsletters that municipal employees must provide su- perlative customer service and that Hillton would become one of the most customer-friendly places for citizens and those who do business with the municipality. To this end, these managers were quick to support the public’s increasing demand for more “soft” services, including expanded library services and recreational activities. And when population growth recently flattened out, the city manager and other professionals gained council support to lay off a few of the outside workers due to lack of demand for hard services.
One of the most significant changes was that the “outside” departments no longer held dominant positions in city man- agement. Most of the “professional” managers had worked exclusively in administrative and related inside jobs. Two had Master’s of Business Administration degrees. This led to some tension between the professional managers and the older out- side managers. Even before the layoffs, managers of outside departments resisted the changes more than others. These managers com- plained that their employees with the highest seniority were turned down for promotions. They argued for more budget and warned that infrastructure problems would cause liability prob- lems. Informally, these outside managers were supported by the labor union representing outside workers. The union leaders tried to bargain for more job guarantees, whereas the union rep- resenting inside workers focused more on improving wages and benefits. Leaders of the outside union made several statements in the local media that the city had “lost its heart” and that the public would suffer from the actions of the new professionals.
Discussion Questions
1. Contrast Hillton’s earlier corporate culture with the emerging set of cultural values.
2. Considering the difficulty in changing organizational culture, why does Hillton’s management seem to have been successful in this transformation?
3. Identify two other strategies that the city might consider to reinforce the new set of corporate values.
Copyright © 2000 Steven L. McShane. This case is a slightly fictionalized account of actual events.
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Discussion Questions for Part A
1. How easy was it for your group to reach consensus re- garding these metaphors? What does that imply about the culture of your school?
2. How do you see these metaphors in action? In other words, what are some critical school behaviors or other artifacts that reveal the presence of your culture?
3. Think of another organization to which you belong (e.g., work, religious congregation). What is its dominant cul- tural values, how do you see them in action, and how do they affect the effectiveness of that organization?
PART B: ANALYZING AND INTERPRETING
CULTURAL METAPHORS
Instructions Previously, you completed a metaphor exercise to describe the corporate culture of your school. That exercise gave you a taste of how to administer such a diagnostic tool and draw inferences from the results generated. This activity builds on that experience and is
designed to help refine your ability to analyze such data and make suggestions for improvement. Five work teams (four to seven members, mixed gender in all groups) of an organization located in Cincinnati completed the metaphor exercise similar to the exercise in which you participated in class (see Part A earlier). Their responses are shown in the following table. Working in teams, analyze the information in this table and answer these questions:
Discussion Questions for Part B
1. In your opinion, what are the dominant cultural values in this organization? Explain your answer.
2. What are the positive aspects of this type of culture? 3. What are the negative aspects of this type of culture? 4. What is this organization’s main business, in your opinion?
Explain your answer. 5. These groups all reported to one manager. What advice
would you give to her about this unit?
CLASS EXERCISE: DIAGNOSING CORPORATE CULTURE PROCLAMATIONS
PURPOSE This exercise is designed to help you under- stand the importance and context in which corporate culture is identified and discussed in organizations.
INSTRUCTIONS This exercise is a take-home activity, although it can be completed in classes where computers and Internet connections are available. The instructor will divide the class into small teams (typically four or five people per team). Each team is assigned a specific industry—such as en- ergy, biotechnology, or computer hardware. The team’s task is to search the websites of several compa- nies in the selected industry for company statements about their corporate cultures. Use company website search engines (if they exist) to find documents with key phrases such as “corporate culture” or “company values.”
In the next class, or at the end of the time allotted in the current class, students will report on their observations by answering the following three discussion questions.
Discussion Questions
1. What values seem to dominate the corporate cultures of the companies you searched? Are these values similar or diverse across companies in the industry?
2. What was the broader content of the web pages on which these companies described or mentioned their corporate cultures?
3. Do companies in this industry refer to their corporate cultures on their websites more or less than companies in other industries searched by teams in this class?
TEAM ANIMAL FOOD PLACE TV SHOW SEASON
Metaphor Results of Five Teams in a Cincinnati Organization
1 Rabbit Big Mac Casino 48 Hrs. (movie) Spring
2 Horse Taco Racetrack Miami Vice Spring
3 Elephant Ribs Circus Roseanne Summer
4 Eagle Big Mac Las Vegas CNN Spring
5 Panther Chinese New York LA Law Racing
Source: Adapted from D. L. Luechauer and G. M. Shulman, “Using a Metaphor Exercise to Explore the Principles of Organizational Culture,” Journal of Management Education 22 (December 1998), pp. 736–44. Used with permission of the authors.
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SELF-ASSESSMENT
WHICH CORPORATE CULTURE DO YOU PREFER? PURPOSE This self-assessment is designed to help you identify the corporate culture that fits most closely with your personal values and assumptions.
INSTRUCTIONS Read each pair of statements in the Corporate Culture Preference Scale and circle the statement that describes the organization you would prefer to work in. Then, use the scoring key in the Appendix at the end of the book to calculate your results for each subscale. The scale
does not attempt to measure your preference for every corpo- rate culture—just a few of the more common varieties. Also, keep in mind that none of these corporate cultures is inher- ently good or bad. The focus here is on how well you fit within each of them. This exercise should be completed alone so that you can assess yourself honestly without concerns of social comparison. Class discussion will focus on the impor- tance of matching job applicants to the organization’s domi- nant values.
Corporate Culture Preference Scale
I WOULD PREFER TO WORK IN AN ORGANIZATION:
Copyright © 2000 Steven L. McShane.
1a. Where employees work well together in teams. or 1b. That produces highly respected products or services.
2a. Where top management maintains a sense of order in or 2b. Where the organization listens to customers and the workplace. responds quickly to their needs.
3a. Where employees are treated fairly. or 3b. Where employees continuously search for ways to work more efficiently.
4a. Where employees adapt quickly to new work or 4b. Where corporate leaders work hard to keep employees requirements. happy.
5a. Where senior executives receive special benefits not or 5b. Where employees are proud when the organization available to other employees. achieves its performance goals.
6a. Where employees who perform the best get paid or 6b. Where senior executives are respected. the most.
7a. Where everyone gets her or his job done like clockwork. or 7b. That is on top of innovations in the industry.
8a. Where employees receive assistance to overcome any or 8b. Where employees abide by company rules. personal problems.
9a. That is always experimenting with new ideas in the or 9b. That expects everyone to put in 110 percent for peak marketplace. performance.
10a. That quickly benefits from market opportunities. or 10b. Where employees are always kept informed about what’s happening in the organization.
11a. That can quickly respond to competitive threats. or 11b. Where most decisions are made by the top executives.
12a. Where management keeps everything under control. or 12b. Where employees care for each other.
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.
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Organizational Change
After reading this chapter, you should be able to:
15-1 Describe the elements of Lewin’s force field analysis model.
15-2 Discuss the reasons people resist organizational change and how change agents should view this resistance.
15-3 Outline six strategies for minimizing resistance to change and debate ways to effectively create an urgency to change.
15-4 Discuss how leadership, coalitions, social networks, and pilot projects assist organizational change.
15-5 Describe and compare action research, appreciative inquiry, large group interventions, and parallel learning structures as formal approaches to organizational change.
15-6 Discuss two cross-cultural and three ethical issues in organizational change.
c ha pter 15
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joke around South Korea asks what LG Group executives would do if a snake slithered into their offices. The answer? They would try to find out what Samsung did in this situation and then do the same thing!
Although LG is successful by most standards, the not-so-subtle message here is that
Korea’s second largest conglomerate falls short of its potential by following in the
footsteps of Samsung, Korea’s largest conglomerate.
“I have had a set of opportunities to work together with representatives of
Samsung Electronics and LG Electronics, and learned that the organizational cultures
of the two are totally different,’’ says a South Korean government official. “Samsung
members tend to have a clear vision on future prospects and are ready to make
risky bets in the driver’s seat. But LG employees tend to be happy to be on the
passenger side.”
LG Group chairman Koo Bon-moo seems to be hearing this message. In a recent
speech to employees, Koo emphasized the urgency to change by leading rather
than following other companies. “There must be drastic and specific changes to
create customer values that are different from others,” he said. “We can’t make
differentiated values if we just follow the footsteps of other rivals. We must set the
direction earlier than others like we did last year with our 3-D television and fourth-
generation network technology Long Term Evolution.”
Koo and his executive team are also bringing about meaningful change through
programs to nurture next-generation entrepreneurs within the organization. One
such initiative gives 400 managers more autonomy to lead various projects. Another
initiative is a well-crafted entrepreneurship training program, with 1,500 LG
employees at lower ranks going through the training program and receiving special
coaching from executives. “To become a market leader, we need to see things
through to the end with commitment to change us to the marrow,” Koo emphasized
in a two-day marathon session with LG’s top 40 executives.1
jo w w
AA A
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LG Group chairman Koo Bon-moo (shown) is creating an urgency to change Korea’s second largest conglomerate into a more proactive, marketplace leader rather than a follower of Samsung.
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426 Part Four Organizational Processes
The transformation of LG Electronics into a marketplace leader rather than a follower of Samsung illustrates many of the strategies and practices necessary to change organizations. LG Group chairman Koo Bon-moo sent a clear signal about the urgency to change. He and his executive team introduced training, coaching, involvement, and other change management practices to increase employee commitment to the changes, as well as their capacity to perform in LG’s innovation-oriented future. Although LG Group’s change process looks as though it is proceeding smoothly, most organizational change is messy, requiring considerable leadership effort and vigilance. As we will describe throughout this chapter, the challenge of change is not so much deciding which way to go; the challenge is the execution of this strategy. When leaders discover the need for change and identify some ideas about a preferred route to a better future, the change process involves navigating around the numerous obstacles and gaining organization-wide support for that change.
This chapter unfolds as follows. We begin by introducing Lewin’s model of change and its component parts. This discussion includes sources of resistance to change, ways to minimize this resistance, and tactics to stabilize desired behaviors. Next, the chapter examines four approaches to organizational change—action research, appreciative inquiry, large group interventions, and parallel learning structures. The last section of this chapter considers both cross-cultural and ethical issues in organizational change.
Lewin’s Force Field Analysis Model “The velocity of change is so rapid, so quick, that if you don’t accept the change and move with the change, you’re going to be left behind.”2 This statement by BHP Billiton Chairman Jacques Nasser reflects the notion that organizations need to keep pace with ongoing changes in their external environment. Organizations are, after all, open systems that need to remain compatible with their external environments (see Chapter 1), such as consumer needs, global competition, technology, community expectations, government (de)regulation, and environmental standards. Successful organizations monitor their environments and take appropriate steps to maintain a compatible fit with new external conditions. Rather than resisting change, employees in successful companies embrace change as an integral part of organizational life. “I’ve always believed that when the rate of change inside an institution becomes slower than the rate of change outside, the end is in sight,” says former General Electric CEO Jack Welch. “The only question is when.”3
It is easy to see that environmental forces push companies to change the way they operate. What is more difficult to see is the complex interplay of these forces on the internal dynamics of organizations. Social psychologist Kurt Lewin developed a model to describe this process, using the metaphor of a force field (see Exhibit 15.1).4 Although it was developed more than 50 years ago, recent reviews affirm that Lewin’s force field analysis model remains one of the most widely respected ways of viewing the change process.5
One side of the force field model represents the driving forces that push organizations toward a new state of affairs. These might include new competitors or technologies, evolving workforce expectations, or a host of other environmental changes. Corporate leaders also produce driving forces even when external forces for change aren’t apparent. For instance, some experts call for “divine discontent” as a key feature of successful organizations, mean- ing that leaders continually urge employees to strive for higher standards or better practices. Even when the company outshines the competition, employees believe they can do better.
Visit connect.mcgrawhill.com for activities and test questions to help you learn about Lewin’s force field model of change.
LO 15-1
force field analysis
Kurt Lewin’s model of system- wide change that helps change agents diagnose the forces that drive and restrain proposed organizational change.
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Chapter Fifteen Organizational Change 427
“We have a habit of divine discontent with our performance,” says creative agency Ogilvy & Mather about its corporate culture. “It is an antidote to smugness.”6
The other side of Lewin’s model represents the restraining forces that maintain the status quo. These restraining forces are commonly called “resistance to change” because they appear to block the change process. Stability occurs when the driving and restraining forces are roughly in equilibrium—that is, they are of approximately equal strength in opposite directions.
Lewin’s force field model emphasizes that effective change occurs by unfreezing the current situation, moving to a desired condition, and then refreezing the system so it remains in the desired state. Unfreezing involves producing disequilibrium between the driving and restraining forces. As we will describe later, this may occur by increasing the driving forces, reducing the restraining forces, or a combination of both. Refreezing occurs when the organization’s systems and structures are aligned with the desired behaviors. They must support and reinforce the new role patterns and prevent the organization from slipping back into the old way of doing things. Over the next few pages, we use Lewin’s model to understand why change is blocked and how the process can evolve more smoothly.
Understanding Resistance to Change Robert Nardelli pushed hard to transform Home Depot from a loose configuration of fiefdoms to a more performance-oriented operation that delivered a consistent customer experience. Change did occur at the world’s largest home improvement retailer, but at a price. Many talented managers and employees left the company, and some of those remain- ing continued to resent Nardelli’s transformation. Disenchanted staff referred to the company as “Home Despot” because the changes took away their autonomy. Others named it “Home GEpot,” a disparaging reference to the many former GE executives that Nardelli hired into top positions. After five years, the Home Depot board decided to replace Nar-
delli, partly because he made some unsuccessful strategic decisions, and partly because some changes he introduced were unsuccessful.7
Robert Nardelli experienced considerable resistance to change at Home Depot. He has plenty of company. One survey reported that 43 percent of American managers identified resistance to change as a primary barrier to workplace productivity. This resistance is not short lived. Twenty-one percent of 1,700 change agents surveyed
EXHIBIT 15.1
Lewin’s Force Field Analysis Model
Desired conditions
Current conditions
Restraining forces
Driving forcesRestraining
forcesforces
Driving forces
Restraining forces
Driving forces
Before change After change
LO 15-2
unfreezing
The first part of the change process, in which the change agent produces disequilibrium between the driving and restraining forces.
refreezing
The latter part of the change process, in which systems and structures are introduced that reinforce and maintain the desired behaviors.
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428 Part Four Organizational Processes
Are you tolerant of change? Visit connect.mcgrawhill.com to assess your natural tendency to tolerate change, as well as to assist your learning about the sources of resistance to change.
across more than 40 countries acknowledged that employees still resisted a specific major change one or two years after it was implemented.9
Resistance to change takes many forms, ranging from overt work stoppages to subtle attempts to continue the old ways.10 A study of bank employees reported that subtle resistance is much more common than overt resistance. Some employees in that study avoided the desired changes by moving into dif- ferent jobs. Others continued to perform tasks the old way as long as management didn’t notice. Even when employees complied with the planned changes, they showed resistance by performing the new task while letting customers know that they disapproved of these changes forced on them!11
Most change agents are understandably frustrated by pas- sive or active resistance to their planned change, but resistance is a common and natural human response. As economist John Kenneth Galbraith once quipped: “Faced with the choice between changing one’s mind and proving that there is no need to do so, almost everyone gets busy on the proof.”13 Even when people support change, they typically assume that it is others—not themselves—who need to change.
Resistance is a form of conflict, but unfortunately change agents sometimes interpret that disagreement as relationship conflict (see Chapter 11). They describe the people who resist as unreasonable, dysfunctional, and irrational reactionaries to a desirable initiative. This perspective shapes the change agent’s response to resistance, which tends to escalate the conflict, producing even stronger resistance to the change
initiative. A more productive approach is to view resistance to change as task conflict. From the task conflict perspective, resistance is a signal that the change agent has not sufficiently prepared employees for the change.14 Employees might not feel a sufficiently strong urgency to change, or they might feel the change strategy is ill-conceived. Even if they recognize the need for change and agree with the strategy, they might resist because they lack confidence to change or believe the change will make them worse off than the current situation. Resistance takes many forms, and change agents need to decipher those different types of resistance to understand their underlying causes.15
Resistance is also a form of voice, so discussion potentially improves procedural justice (see Chapter 5) as well as decision making (see Chapter 7). By redirecting initial forms of resistance into constructive conversations, change agents can increase employee perceptions and feelings of fairness. Furthermore, resistance is motivational; it potentially engages people to think about the change strategy and process. Change agents can harness that motivational force to ultimately strengthen commitment to the change initiative.
Three years after it merged with Continental Airlines, United Airlines has the lowest operational and customer service ranking among the largest 15 U.S. airlines. United executives say the poor results are partly due to the challenges of combining complex reservation and operational systems. But they also admit that the problems are also due to subtle forms of employee resistance to change. Some Continental employees have opposed United Airlines operational practices, while some United Airlines employees have failed to embrace Continental’s customer service standards. “You know, the cultural change takes time,” explains United Airlines CEO Jeffrey Smisek. “And people resist change. People are sort of set in their ways.”12
WHY EMPLOYEES RESIST CHANGE Change management experts have developed a long list of reasons why people resist change. Some people inherently oppose change because of their personality and values.16 Aside from these dispositional factors, employees typically oppose organizational change because they
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Chapter Fifteen Organizational Change 429
Percentage of employees, by selected countries, who agree or strongly agree that “change is handled effectively in my organization.” Not all 28,810 employees across the 15 countries surveyed are shown here, but all are included in the “total sample” figure.
India United States
China United Kingdom
Total Sample
Germany France South Korea
Japan
63%
49% 47% 43% 43% 42%
34% 31%
24%
0%
10%
20%
30%
40%
50%
60%
70%
80%
How Effectively Do Organizations around the World Handle Change?8
Negative Valence of Change Employees apply a cost–benefit analysis to deter- mine if the change will make them better or worse off.19 This analysis consists of the cal- culation described in the expectancy theory of motivation (Chapter 5) and subjective expected utility (Chapter 7). Specifically, resistance to change is higher when employees believe that: (a) the change will have more negative than positive outcomes (e.g., lost status, lower pay, poorer working conditions), and (b) the negative outcomes have a high probability of occurring and the positive outcomes have a low probability of occurring. Although employees consider their personal costs and benefits from the change, their re- sistance or commitment also depends on their belief that the change will benefit or harm the team and company. Even if they personally benefit, to some degree employees may oppose the change if they believe others will suffer or the initiative will be ineffective for the organization.20
Fear of the Unknown All change includes some degree of uncertainty; people lack the ability to accurately predict or visualize the future situation. When employees do not know the probability of good or bad outcomes from the change, they tend to anticipate worse rather than better outcomes. Only when the present conditions are very bad do most people welcome an
Are you ready for change? Visit connect.mcgrawhill.com to identify conditions that are holding back your readiness for a specific change initiative.
lack sufficient motivation, ability, role clarity, or situational support to change their attitudes, decisions, and behavior.17 In other words, an employee’s readiness for change depends on all four elements of the MARS model. These four factors are the foundations of the six most commonly cited reasons people resist change, which are summarized here:18
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430 Part Four Organizational Processes
uncertain future. Uncertainty is also associated with lack of personal control.21 This lack of control generates negative emotions, particularly when the change potentially affects things of importance, such as our jobs, careers, or self-concepts. Overall, the uncertainty built into most organizational change is considered less desirable than the relative certainty of the status quo.
Not-Invented-Here Syndrome Some employees oppose or even discreetly undermine a change initiative because its success threatens their self-worth. This resistance occurs when the change was developed by others, even though the practice is within the individual’s job duties or mandate. Due to this “not-invented-here” syndrome, staff sometimes deliberately inflate problems with changes that they did not initiate, just to “prove” that those ideas were not superior to their own. As one consultant warned: “Unless they’re scared enough to listen, they’ll never forgive you for being right and for knowing something they don’t.”22
An example of the not-invented-here syndrome occurred several years ago when Gold- corp CEO Rob McEwan decided to post the mining company’s confidential geological data online and offer a handsome reward to anyone who could help find more gold on the property. The Goldcorp Challenge was a huge success, but the firm’s geological staff com- plained just before the event was launched. “We have real concerns,” they told McEwen. “You’re going to ask the rest of the world to tell you where we’re going to find gold in our mine, and we think they’re going to think we’re really dumb and that you don’t have any confidence in us.”23
Breaking Routines People typically resist initiatives that force them out of their com- fort zones and require them to invest time and energy in learning new role patterns. Indeed, most employees in one survey admitted they don’t follow through with organizational changes because they “like to keep things the way they are” or the changes seem too compli- cated or time consuming.24
Incongruent Team Dynamics Teams develop and enforce conformity to a set of norms that guide behavior. However, conformity to existing team norms may discourage employees from accepting organizational change. For instance, organizational initiatives to improve customer service may be thwarted by team norms that discourage the extra effort expected to serve customers at this higher standard.
Ray Davis, CEO of Umpqua Bank, warns that employees tend to revert to their past routines and habits unless the change is reinforced through systems and structures. “When you are leading for growth, you know you are going to disrupt comfortable routines and ask for new behavior, new priorities, new skills,” says Davis, whose Oregon-based bank is regarded as one of America’s most innovative financial institutions. “Even when we want to change, and do change, we tend to relax and the rubber band snaps us back into our comfort zones.”25
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Chapter Fifteen Organizational Change 431
Incongruent Organizational Systems Rewards, information systems, patterns of authority, career paths, selection criteria, and other systems and structures are both friends and foes of organizational change. When properly aligned, they reinforce desired behaviors. When misaligned, they pull people back into their old attitudes and behavior. Even enthusiastic employees lose momentum after failing to overcome the structural con- fines of the past.
Unfreezing, Changing, and Refreezing According to Lewin’s force field analysis model, effective change occurs by unfreezing the current situation, moving to a desired condition, and then refreezing the system so it re- mains in this desired state. Unfreezing occurs when the driving forces are stronger than the restraining forces. This happens by making the driving forces stronger, weakening or remov- ing the restraining forces, or both.
The first option is to increase the driving forces, motivating employees to change through fear or threats (real or contrived). This strategy rarely works, however, because the action of increasing the driving forces alone is usually met with an equal and opposing increase in the restraining forces. A useful metaphor is pushing against the coils of a mattress. The harder corporate leaders push for change, the stronger the restraining forces push back. This antago- nism threatens the change effort by producing tension and conflict within the organization.
The second option is to weaken or remove the restraining forces. The problem with this change strategy is that it provides no motivation for change. To some extent, weakening the restraining forces is like clearing a pathway for change. An unobstructed road makes it easier to travel to the destination but does not motivate anyone to go there. The preferred option, therefore, is to both increase the driving forces and reduce or remove the restraining forces. Increasing the driving forces creates an urgency for change, while reducing the restraining forces lessens motivation to oppose the change and removes obstacles such as lack of ability and situational constraints.
CREATING AN URGENCY FOR CHANGE A few months after he became CEO of Nokia Corp, Stephen Elop sent employees a scorch- ing e-mail, warning them about the urgency for change. “I have learned that we are standing on a burning platform,” wrote Elop. “And, we have more than one explosion—we have multiple points of scorching heat that are fueling a blazing fire around us.” Elop described strong competition from Apple and Google, Nokia’s falling brand preference, and its declin- ing credit rating. “We poured gasoline on our own burning platform,” he warned, pointing to the company’s poor accountability and leadership.26
Nokia recently sold its mobile phone division to Microsoft and Elop has become Micro- soft’s executive vice-president. But this incident illustrates Elop’s strong belief that Nokia’s future depended on its employees developing a stronger urgency for change.27 This urgency for change typically occurs by informing employees about competitors, changing consumer trends, impending government regulations, and other forms of turbulence in the external environment. These are the main driving forces in Lewin’s model. They push people out of their comfort zones, energizing them to face the risks that change creates. In many organiza- tions, however, leaders buffer employees from the external environment to such an extent that these driving forces are hardly felt by anyone below the top executive level. The result is that employees don’t understand why they need to change, and leaders are surprised when their change initiatives do not have much effect.
Customer-Driven Change Some companies fuel the urgency to change by putting employees in direct contact with customers. Dissatisfied customers represent a compelling driving force for change because the organization’s survival typically depends on having
LO 15-3
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432 Part Four Organizational Processes
customers who are satisfied with the product or service. Customers also provide a human element that further energizes employees to change current behavior patterns.28
Executives at Shell Europe applied customer-driven change a few years ago. Many middle managers at the energy company seemed blissfully unaware that Shell wasn’t achieving either its financial goals or its customer needs. To create an urgency for change, the European man- agers were loaded onto buses and taken out to talk with customers and employees who work with customers every day. “We called these ‘bus rides.’ The idea was to encourage people to think back from the customer’s perspective rather than from the head office,” explains Shell Europe’s vice president of retailing. “The bus rides were difficult for a lot of people who, in their work history, had hardly ever had to talk to a customer and find out what was good and not so good about Shell from the customer’s standpoint.”29
Creating an Urgency for Change without External Forces Exposing em- ployees to external forces can strengthen the urgency for change, but leaders often need to begin the change process before problems come knocking at the company’s door. The chal- lenge is greatest when companies are successful in their markets. Studies have found that when the organization is performing well, decision makers become less vigilant of external threats and more resistant to change. “The biggest risk is that complacency can also come with that success,” warns Wesfarmers CEO Richard Goyder. “That complacency may result in risk-aversion, or it may simply show up as a lack of urgency, as people take the foot off the accelerator and just assume that success will come as it always has.”31
Creating an urgency for change when the organization is ahead of the competition requires a lot of persuasive influence that helps employees visualize future competitive threats and envi- ronmental shifts. “You want to create a burning platform for change even when there isn’t a need for one,” says Steve Bennett, former CEO of the financial software company Intuit.32 Experts warn, however, that employees may see the burning-platform strategy as manipula- tive—a view that produces cynicism about change and undermines trust in the change agent.33 Fortunately, the urgency for change doesn’t need to originate from problems or threats to the company; this motivation can also develop through a change champion’s vision of a more appealing future. By creating a future vision of a better organization, leaders effectively make
Each year, JP Morgan Chase executives literally take the bus to visit customers, branch employees, community groups, and other stakeholders across the United States. These bus tours generate an urgency for change because executives get direct exposure to ways in which the bank can be improved. “We ask them what can we do better as a company, what can we do better for clients,” said JP Morgan Chase CEO Jamie Dimon, shown here on a recent bus tour around Florida. “We’ve already learned 100 different things,” said Dimon, such as “Why can’t we do mortgages quicker?” and “Why can’t we service a credit card account better out of a branch?”30
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Chapter Fifteen Organizational Change 433
the current situation less appealing. When the vision connects to employee values and needs, it can be a motivating force for change, even when external problems are insignificant.
REDUCING THE RESTRAINING FORCES As we explained earlier using the mattress coil metaphor, increasing the driving forces alone will not bring about change, because employees often push back harder to offset the oppos- ing forces. Instead, change agents need to address each of the sources of resistance. Six of the main strategies are outlined in Exhibit 15.2. If feasible, communication, learning, employee involvement, and stress management should be attempted first.34 However, negotiation and coercion are necessary for people who will clearly lose something from the change and in cases in which the speed of change is critical.
Communication Communication is the highest priority and first strategy required for any organizational change. According to one recent survey, communication (together with involvement) is considered the top strategy for engaging employees in the change process.35 Communication improves the change process in at least two ways.36 One way, which we
STRATEGY EXAMPLE WHEN APPLIED PROBLEMS
Communication Customer complaint letters are shown to employees.
When employees don’t feel an urgency for change, don’t know how the change will affect them, or resist change due to a fear of the unknown.
Time-consuming and potentially costly.
Learning Employees learn how to work in teams as the company adopts a team-based structure.
When employees need to break old routines and adopt new role patterns.
Time-consuming, potentially costly, and some employees might be unable to learn the new skills.
Employee involvement
Company forms a task force to recommend new customer service practices.
When the change effort needs more employee commitment, some employees need to protect their self-worth, and/or employee ideas would improve decisions about the change strategy.
Very time-consuming. Might lead to conflict and poor decisions if employees’ interests are incompatible with organizational needs.
Stress management Employees attend sessions to discuss their worries about the change.
When communication, training, and involvement do not sufficiently ease employee worries.
Time-consuming and potentially expensive. Some methods may not reduce stress for all employees.
Negotiation Employees agree to replace strict job categories with multiskilling in return for increased job security.
When employees will clearly lose something of value from the change and would not otherwise support the new conditions. Also necessary when the company must change quickly.
May be expensive, particularly if other employees want to negotiate their support. Also tends to produce compliance but not commitment to the change.
Coercion Company president tells managers to “get on board” with the change or leave.
When other strategies are ineffective and the company needs to change quickly.
Can lead to more subtle forms of resistance, as well as long-term antagonism with the change agent.
EXHIBIT 15.2 Strategies for Minimizing Resistance to Change
Sources: Adapted from J. P. Kotter and L. A. Schlesinger, “Choosing Strategies for Change,” Harvard Business Review 57 (1979), pp. 106–114; P. R. Lawrence, “How to Deal with Resistance to Change,” Harvard Business Review, May–June 1954, pp. 49–57.
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434 Part Four Organizational Processes
described earlier, is by generating an urgency to change. Leaders motivate employees to sup- port the change by candidly telling them about the external threats and opportunities that make change so important. Whether through town hall meetings with senior management or by directly meeting with disgruntled customers, employees become energized to change when they understand and visualize those external forces.
The second way that communication minimizes resistance to change is by illuminating the future and thereby reducing fear of the unknown. The more leaders communicate their vision, particularly details about that future and milestones already achieved toward that future, the more easily employees can understand their own roles in that future. “No. 1 is to always communicate, communicate, communicate,” advises Randall Dearth, CEO of the purification technology company Calgon Carbon Corporation. “If you’re bringing in change, you need to be able to make a very compelling case of what change looks like and why change is necessary.”37
Learning Learning is an important process in most organizational change initiatives, because employees need new knowledge and skills to fit the organization’s evolving require- ments. Learning not only helps employees perform better following the change; it also in- creases their readiness for change because they develop a stronger self-efficacy or confidence in their ability to function effectively following the change (called change self-efficacy). And when employees develop stronger change self-efficacy, they develop a stronger acceptance of and commitment to the change related to those acquired skills and knowledge.38
Employee Involvement Unless the change must occur quickly or employee interests are highly incompatible with the organization’s needs, employee involvement is almost an essential part of the change process. In the chapter on decision making (Chapter 7), we de- scribed several potential benefits of employee involvement, all of which are relevant to orga- nizational change. Employees who participate in decisions about a change tend to feel more personal responsibility for its successful implementation, rather than being disinterested agents of someone else’s decisions.39 This sense of ownership also minimizes the not-invented-here syndrome and fear of the unknown. Furthermore, the complexity of today’s work environ- ment demands that more people provide ideas regarding the best direction of the change effort. Employee involvement is such an important component of organizational change that special initiatives have been developed to allow participation in large groups. These change interventions are described later in the chapter.
Stress Management Organizational change is a stressful experience for many people because it threatens self-esteem and creates uncertainty about the future.40 Communication, learning, and employee involvement can reduce some of the stressors.41 However, research indicates that companies also need to introduce stress management practices to help em- ployees cope with changes.42 In particular, stress management minimizes resistance by re- moving some of the direct costs and fear of the unknown about the change process. Stress also saps energy, so minimizing stress potentially increases employee motivation to support the change process.
Negotiation As long as people resist change, organizational change strategies will re- quire a variety of influence tactics. Negotiation is a form of influence that involves the promise of benefits or resources in exchange for the target person’s compliance with the in- fluencer’s request. This strategy potentially gains support from those who would otherwise lose out from the change. However, this support is mostly compliance with, rather than commitment to, the change effort, so negotiation might not be effective in the long term.
Coercion If all else fails, leaders rely on coercion to change organizations. Coercion can include persistently reminding people of their obligations, frequently monitoring behavior
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Chapter Fifteen Organizational Change 435
to ensure compliance, confronting people who do not change, and using threats of punish- ment (including dismissal) to force compliance. Replacing or threatening to replace staff who will not support the change is an extreme step, but it is fairly common in major orga- nizational change. Global Connections 15.1 describes how Derrick Anderson relies on com- munication and involvement to bring about change at the London Borough of Lambeth. Still, the award-winning borough chief executive acknowledges that when these strategies don’t work, you have to change the people.
One year after Robert Nardelli was hired as CEO of Home Depot, most of the retailer’s top management team had voluntarily or involuntarily left the company. Several years ear- lier, StandardAero CEO Bob Hamaberg threatened to fire senior managers who opposed his initiative to introduce lean management. “You must have senior management commit- ment,” Hamaberg said bluntly at the time. “I had some obstacles. I removed the obstacles.” Today, StandardAero is a world leader in the aircraft engine repair and overhaul business thanks largely to the lean management changes that Hamaberg introduced.44
Firing people is the least desirable way to change organizations. However, dismissals and other forms of coercion are sometimes necessary when speed is essential and other tactics are
Communicate, Involve, or Change Your People43
Local councils throughout the United Kingdom have been under immense pressure as the British government cut their funding by 28 percent over the past five years and plans fur- ther budget reductions over the next few years. Councils have responded by slashing services and outsourcing business activ- ities, but many of them faced stiff resistance from employees and citizens alike. The chief executive of one council lost her job after she failed to gain support for a plan to become a “virtual” government (where all council activities would be outsourced). The Borough of Lambeth, Greater London’s second largest council, survived this financial turmoil better than most through effective management of the change process and in- troduction of a “cooperative” model. This cooperative model devolves power and authority for specific services (such as playgrounds) to local citizen groups or to employees who form their own business-like trust. Lambeth chief executive Derrick Anderson (shown in photo) was recently named pub- lic leader of the year by the Guardian newspaper for deftly steering the borough through this minefield of change. How has Anderson led the change process? The top prior- ity, he says, is communication. “The most important principle of change is to communicate,” Anderson advises. “I’ve put a lot of energy into talking to members and they will win the sup- port of communities for this agenda.” In addition, Anderson has been a strong advocate of involvement from elected coun- cilors, employees, and citizens across the borough. For in- stance, more than 130 local and national organizations and 3,000 Lambeth residents were consulted while Anderson’s team developed the cooperative council model. But Anderson acknowledges that communication and in- volvement won’t commit everyone to get on board. Resistance
to change “can be a challenge,” he says. For example, some bor- ough managers try to avoid signing up their department for the cooperative model. “They will find a reason why their bit of the organization really ought to be left out of the conversation about cooperative working,” Anderson complains. Anderson emphasizes that he works hard to help employ- ees adjust to the changes, but he also warns those who don’t buy-in to the council’s agenda for change. “We will support staff to do their job. But if they don’t want to do it, they’re letting our residents down,” Anderson advises. “I have a simple motto: If you can’t change your people, you’ve got to change your people.”
global connections 15.1
Derrick Anderson, chief executive of the Borough of Lambeth in London, UK, believes that communication and involvement support organizational change for most staff, but for those who still resist, “you’ve got to change your people.”
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436 Part Four Organizational Processes
ineffective. For example, it may be necessary to remove several members of an executive team who are unwilling or unable to change their existing mental models of the ideal organization. This is also a radical form of organizational “unlearning” (see Chapter 1) because when executives leave, they remove knowledge of the organization’s past routines that have become dysfunctional.45 Even so, coercion is a risky strategy because survivors (employees who do not leave) may have less trust in corporate leaders and engage in more political tactics to protect their own job security.
REFREEZING THE DESIRED CONDITIONS Unfreezing and changing behavior won’t produce lasting change. People are creatures of habit, so they easily slip back into past patterns. Therefore, leaders need to refreeze the new behaviors by realigning organizational systems and team dynamics with the desired changes.46 The desired patterns of behavior can be “nailed down” by changing the physical structure and situational conditions. Organizational rewards are also powerful systems that refreeze behaviors.47 If the change process is supposed to encourage efficiency, then rewards should be realigned to motivate and reinforce efficient behavior. Information systems play a complementary role in the change process, particularly as conduits for feedback.48 Feedback mechanisms help employees learn how well they are moving toward the desired objectives, and they provide a permanent architecture to support the new behavior patterns in the long term. The adage “What gets measured, gets done” applies here. Employees concentrate on the new priorities when they receive a continuous flow of feedback about how well they are achieving those goals.
Bank of New Zealand (BNZ) applied this refreezing strategy by changing the feedback and reward system at its call centers. Previously, call center employees received feedback and were rewarded for answering and completing calls quickly. However, management concluded that customers wanted efficient calls, not fast talkers. “What do fast calls have to do with great conversations?” asks BNZ’s managing director of direct sales and service. “Sure, we don’t want to waste the customer’s time. But if we were to ask them what they most wanted from our call center, they might well say they want fast answers, but we’d be wrong to conclude they want fast talkers or hurried conversations.” Now, BNZ provides employee feedback and rewards around “great conversations,” not how quickly the call is completed. Employees are recognized for addressing customer needs rather than on how long it takes to complete the call.49
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Leadership, Coalitions, and Pilot Projects Kurt Lewin’s force field analysis model is a useful template to explain the dynamics of orga- nizational change. But it overlooks four other ingredients in effective change processes: lead- ership, coalitions, social networks, and pilot projects.
TRANSFORMATIONAL LEADERSHIP AND CHANGE The opening case study to this chapter described how LG Group is being transformed into a proactive rather than reactive organization. Perhaps the most important aspect of this change process is the transformational leadership of LG Chairman Koo Bon-moo.
LO 15-4
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Chapter Fifteen Organizational Change 437
He developed a vision of the desired future state, communicated that vision in ways that are meaningful to others, made decisions and acted in ways that were consistent with that vision, and built commitment to that vision.50
A key element of leading change is a strategic vision.51 A leader’s vision provides a sense of direction and establishes the critical success factors against which the real changes are evaluated. Furthermore, a vision provides an emotional foundation for the change, because it links the individual’s values and self-concept to the desired change.52 A strategic vision also minimizes employee fear of the unknown and provides a better understanding of what behaviors employees must learn for the desired future. Global Connections 15.2 describes how Ford CEO Alan Mulally transformed the automaker with a “One Ford” vision and his corresponding leadership.
COALITIONS, SOCIAL NETWORKS, AND CHANGE One of the great truths of organizational change is that change agents cannot lead the initia- tive alone. They need the assistance of several people with a similar degree of commitment to the change.54 Indeed, one recent study concluded that this group—often called a guiding coalition—appears to be the most important factor in the success of public sector organiza- tional change programs.55
Membership in the guiding coalition extends beyond the executive team. Ideally, it includes a diagonal swath of employees representing different functions and most levels in
Driving Change Through a “One Ford” Vision53
Ford Motor Company was barely breathing when Alan Mulally became CEO a few years ago. The company recorded huge losses as its sales and reputation were plummeting. Today, in spite of the worst economic downturn in 50 years, Ford’s pro- duction efficiency, customer satisfaction ratings, and market share are soaring. Five out of six Ford employees say their company is heading in the right direction. Mulally has been hailed as a turnaround champion by transforming Ford into the most successful and competitive automaker in America. How did this remarkable corporate transformation occur? Most observers point to Mulally’s vision for change (“One Ford—One Team, One Plan, One Goal”) which focused every- one on one brand (Ford) with a few models that have global platforms. This change was difficult because executives jeal- ously guarded their vehicle badges and built their products mainly for the North American market. The One Ford vision threatened this divisive culture and the power that it provided many Ford executives. Mulally, previously a senior executive at Boeing, took a hands-on role to change Ford’s divisive culture. He joined staff in visiting customers and industry groups. He held numerous town halls meetings, drumming the same message that every- one needs to cooperate as One Ford across divisions and focus more on customers than personal fiefdoms. Mulally’s toughest challenge was to nurture the One Ford vision within the company’s executive team. He partially accomplished this through weekly business planning review
meetings, where his 16 direct reports are required to pay close attention to each other’s presentation slides. Private chats and other distractions are prohibited. “If you aren’t com- fortable with that you might be more comfortable leaving the company,” said Mulally at one meeting with a friendly, yet meaningful, tone. To demonstrate his One Ford vision, Mulally created a pilot project—a special global task force that designed and engi- neered a new Focus with the same chassis, features, and name around the world. Today, the Ford Focus is Mulally’s “proof point”—a beacon of his One Ford vision.
global connections 15.2
Alan Mulally’s “One Ford” vision and his transformational leadership were key factors in the successful turnaround of Ford Motor Company.
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438 Part Four Organizational Processes
the organization. In some cases, the guiding coalition is formed from a special task force that initially investigates the opportunities for change. Members of the guiding coalition should also be influence leaders; that is, they should be highly respected by peers in their area of the organization. At the same time, one recent report on organizational change warned that it takes more than a few dedicated disciples to generate widespread change.56 Guiding coali- tions may be very important, but they alone do not generate commitment to change in the rest of the workforce.
Social Networks and Viral Change While a guiding coalition is a formally structured group, change also occurs more informally through social networks. To some extent, coalition members support the change process by feeding in to these networks. But social networks play a role in organizational change, whether or not the change process in- cludes a formal coalition. Social networks are social structures of individuals or social units (e.g., departments, organizations) that are connected to each other through one or more forms of interdependence (see Chapter 10). They have an important role in communication and influence, both of which are key ingredients for organizational change.
The problem is that social networks are not easily controlled. Even so, some change agents have tapped into social networks to build a groundswell of support for a change initiative. This viral change process adopts principles found in word-of-mouth and viral marketing.57 Viral and word-of-mouth marketing occur when information seeded to a few people is transmitted to others through their friendship connections. Within organizations, social networks represent the channels through which news and opinion about change ini- tiatives are transmitted. Participants in that network have relatively high trust, so their infor- mation and views are more persuasive than when communication occurs through more formal channels from management. Social networks also provide opportunities for behavior observation: Employees observe each other’s behavior and often adopt that behavior them-
selves. So, when a change initiative causes change in the be- havior of some employees, the social network potentially spreads this behavior change to others in that network.58
PILOT PROJECTS AND DIFFUSION OF CHANGE Over the past decade, Procter & Gamble (P&G) has em- braced “design thinking,” which takes the view that new ideas emerge through discovery of the unknown rather than through systematic surveys and other data collection depen- dent on past knowledge. This “abductive” approach is neither easy nor comfortable for most businesspeople, so P&G began
Viral change is one of the more novel ways to generate change in work units and organizations. Based on the power and influence of social networks, viral change begins by gaining support from key influencers. As these people change their behavior, others in the network eventually change their behavior. This occurs partly because of the influencer’s referent power and partly because social networks make it easier for coworkers to observe and mimic the influencer’s changed behavior. Although the viral change process is difficult to manage, Pfizer, Novo Nordisk, and a few other firms have been reasonably successful at using social networks to change employee attitudes and behavior.59
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Chapter Fifteen Organizational Change 439
the change process through a pilot project at the company’s global hair-care business in London, England. Participants in the program learned the meaning of design thinking and were coached in applying it to real-world issues, such as how women actually use styling products. These participants not only learned about design thinking but also developed skills to teach coworkers about this unique approach to business decisions. Eventually, more than 150 peo- ple across many areas of P&G’s global business became trained facilitators, developing the practice in everyday meetings. “These things are literally going on every day, and we don’t even know where or when,” says the P&G executive who initiated the change program.60
Procter & Gamble and many other companies often introduce change through a pilot project. This cautious approach tests the effectiveness of the change, as well as the strategies to gain employee support for the change without the enormous costs and risk of company- wide initiatives. Unlike centralized, system-wide changes, pilot projects are more flexible and less risky.61 They also make it easier to select organizational groups that are most ready for change, thus increasing the pilot project’s success.
But how do we diffuse the pilot project’s change to other parts of the organization? Using the MARS model as a template (see Chapter 2), Exhibit 15.3 outlines several strategies to dif- fuse pilot projects. First, employees are more likely to adopt the practices of a pilot project when they are motivated to do so.62 This occurs when they see that the pilot project is success- ful and people in the pilot project receive recognition and rewards for changing their previous work practices. Diffusion also occurs more successfully when managers support and reinforce the desired behaviors. More generally, change agents need to minimize the sources of resistance to change that we discussed earlier in this chapter.
Second, employees must have the ability—the required skills and knowledge—to adopt the practices introduced in the pilot project. According to innovation diffusion studies, people adopt ideas more readily when they have an opportunity to interact with and learn from others who have already applied the new practices.63 Thus, pilot projects get diffused when employees in the original pilot are dispersed to other work units as role models and knowledge sources.
Third, pilot projects get diffused when employees have clear role perceptions—that is, when they understand how the practices in a pilot project apply to them even though they
MOTIVATION
• Widely communicate and celebrate the pilot project’s success.
• Reward and recognize pilot project employees, as well as those who work at transferring that change to other parts of the organization.
• Ensure that managers support and reinforce the desired behaviors related to the pilot project’s success.
• Identify and address potential sources of resistance to change.
ABILITY
• Give employees the opportunity to interact with and learn from those in the pilot project.
• Reassign or temporarily send some pilot project employees to other work units, where they can coach and serve as role models.
• Give employees technical training to implement practices identified in the pilot project.
ROLE PERCEPTIONS
• Communicate and teach employees how the pilot project practices are relevant for their own functional areas.
• Ensure that the pilot project is described in a way that is neither too specific nor too general.
SITUATIONAL FACTORS
• Give staff sufficient time and resources to learn and implement the pilot project practices in their work units.
EXHIBIT 15.3
Strategies for Diffusing Change from a Pilot Project
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440 Part Four Organizational Processes
are in a completely different functional area. For instance, accounting department employ- ees won’t easily recognize how they can adopt quality improvement practices developed by employees in the production department. The challenge here is for change agents to provide guidance that is not too specific (not too narrowly defined around the pilot project environ- ment), because it might not seem relevant to other areas of the organization. At the same time, the pilot project intervention should not be described too broadly or abstractly to other employees, because this makes the information and role model too vague. Finally, employees require supportive situational factors, including the resources and time necessary to adopt the practices demonstrated in the pilot project.
Four Approaches to Organizational Change So far, this chapter has examined the dynamics of change that occur every day in organiza- tions. However, organizational change agents and consultants also apply various structured approaches to organizational change. This section introduces four of the leading ap- proaches: action research, appreciative inquiry, large group interventions, and parallel learning structures.
LO 15-5
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ACTION RESEARCH APPROACH Along with introducing the force field model, Kurt Lewin recommended an action research approach to the change process. The philosophy of action research is that meaningful change is a combination of action orientation (changing attitudes and behavior) and research orien- tation (testing theory).64 On the one hand, the change process needs to be action-oriented because the ultimate goal is to change the workplace. An action orientation involves diagnosing current problems and applying interventions that resolve those problems. On the other hand, the change process is a research study, because change agents apply a conceptual framework (such as team dynamics or organizational culture) to a real situation. As with any good research, the change process involves collecting data to diagnose problems more effectively and to systematically evaluate how well the theory works in practice.65
Within this dual framework of action and research, the action research approach adopts an open-systems view. It recognizes that organizations have many interdependent parts, so change agents need to anticipate both the intended and the unintended consequences of their interventions. Action research is also a highly participative process, because open-systems change requires both the knowledge and the commitment of members within that system. Indeed, employees are essentially co-researchers as well as participants in the intervention. Overall, action research is a data-based, problem-oriented process that diagnoses the need for change, introduces the intervention, and then evaluates and stabilizes the desired changes. The main phases of action research are illustrated in Exhibit 15.4 and described here:66
1. Form client–consultant relationship. Action research usually assumes that the change agent originates outside the system (such as a consultant), so the process begins by forming the client–consultant relationship. Consultants need to determine the client’s readiness for change, including whether people are motivated to participate in the process, are open to meaningful change, and possess the abilities to complete the process.
action research
A problem-focused change process that combines action orientation (changing attitudes and behavior) and research orientation (testing theory through data collection and analysis).
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Chapter Fifteen Organizational Change 441
2. Diagnose the need for change. Action research is a problem-oriented activity that carefully diagnoses the problem through systematic analysis of the situation. Organizational diagnosis identifies the appropriate direction for the change effort by gathering and analyzing data about an ongoing system, such as through inter- views and surveys of employees and other stakeholders. Organizational diagnosis also includes employee involvement in agreeing on the appropriate change method, the schedule for the actions involved, and the expected standards of successful change.
3. Introduce intervention. This stage in the action research model applies one or more actions to correct the problem. It may include any of the prescriptions mentioned in this book, such as building more effective teams, managing conflict, building a bet- ter organizational structure, or changing the corporate culture. An important issue is how quickly the changes should occur.67 Some experts recommend incremental change, in which the organization fine-tunes the system and takes small steps toward a desired state. Others claim that rapid change is often required, in which the system is overhauled decisively and quickly.
4. Evaluate and stabilize change. Action research recommends evaluating the effec- tiveness of the intervention against the standards established in the diagnostic stage. Unfortunately, even when these standards are clearly stated, the effective- ness of an intervention might not be apparent for several years or might be diffi- cult to separate from other factors. If the activity has the desired effect, the change agent and participants need to stabilize the new conditions. This refers to the refreezing process that was described earlier. Rewards, information systems, team norms, and other conditions are redesigned so they support the new values and behaviors.
The action research approach has dominated organizational change thinking since it was introduced in the 1940s. However, some experts are concerned that the problem-oriented nature of action research—in which something is wrong that must be fixed—focuses on the negative dynamics of the group or system rather than its positive opportunities and poten- tial. This concern with action research has led to the development of a more positive ap- proach to organizational change, called appreciative inquiry.71
APPRECIATIVE INQUIRY APPROACH Appreciative inquiry tries to break out of the problem-solving mentality of traditional change management practices by reframing relationships around the positive and the possi- ble. It searches for organizational (or team) strengths and capabilities and then applies or adapts that knowledge for further success and well-being. Appreciative inquiry is therefore
Diagnose need for change
Introduce intervention
Evaluate and stabilize change
Form client–
consultant relationship
Disengage consultant’s
services
• Gather data
• Analyze data
• Decide objectives
• Implement the desired incremental or quantum change
• Determine the change effectiveness
• Refreeze new conditions
EXHIBIT 15.4 The Action Research Process
appreciative inquiry
An organizational change strategy that directs the group’s attention away from its own problems and focuses participants on the group’s potential and positive elements.
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442 Part Four Organizational Processes
deeply grounded in the emerging philosophy of positive organizational behavior, which suggests that focusing on the positive rather than the negative aspects of life will improve organizational success and individual well-being. In other words, this approach emphasizes building on strengths rather than trying to directly correct problems.72
Appreciative inquiry typically examines successful events, organizations, and work units. This focus becomes a form of behavioral modeling, but it also increases open dialogue by redirecting the group’s attention away from its own problems. Appreciative inquiry is espe- cially useful when participants are aware of their problems or already suffer from negativity in their relationships. The positive orientation of appreciative inquiry enables groups to overcome these negative tensions and build a more hopeful perspective on their future by focusing on what is possible.73
Appreciative inquiry’s positive focus is illustrated by the intervention conducted a few years ago at Mittal Steel USA.74 Although the mill was one of the most productive in the global organization, its safety record was poor. A team of employees was formed to spear- head an appreciative inquiry approach to improved safety. Almost all of the Steel USA’s
debating point WHAT’S THE BEST SPEED FOR ORGANIZATIONAL CHANGE?
One of the great debates among organizational change experts is how quickly the change should occur. One view is that slow, in- cremental change is better because it gives employees more time to adjust to the new realities, keep up with what needs to be learned, and manage their stress in this process. Incremental change is also preferred because it gives change champions more time to change course if the current direction isn’t working as hoped. The value of incremental change was recently illustrated at Ergon Energy. Government legislation required companies to upgrade their record keeping system, but the Australian energy provider decided to make the changes incrementally, because employees had already experienced constant change over the previous couple of years. “Even resilient staff such as those em- ployed at Ergon Energy have a change tolerance level,” explains Petá Sweeney, a consultant who worked with Ergon staff during this transition. “Consequently this led deliberately to discounting a revolutionary ’big bang’ approach to record-keeping improve- ments.” Sweeney reports that changing incrementally signifi- cantly improved employee engagement in the process. “Staff are more willing to participate in the change journey as well as offer- ing suggestions for improvements. They do so knowing that changes will take place gradually and allow for time to fully bed down new practices and that effective enterprise-wide changes require their help.”68
In spite of these apparent virtues of incremental change, some experts claim that rapid change is usually much better. They do not say that change needs to be radical or evenly rapid all of the time. Rather, they suggest that most change initiatives need to be,
on average, much quicker than incremental. One argument is that companies operate in such a fast-paced environment that any speed less than “rapid” is risky; an incremental change initiative will put them further behind to the point that any change seems futile. A second argument is that rapid change creates a collective sense of momentum, whereas inertia eventually catches up with incremental change.69 In other words, employees feel the sense of progress when change occurs quickly. This forward movement generates its own energy that helps motivate employees toward the vision. Incremental change, by comparison, is sluggish and lethargic. A related argument is that any organizational change requires plenty of energy, particularly from the leaders who must continually communicate, role model, coach, and otherwise sup- port and influence employees toward the new state of affairs.70 This energy is finite, and it is more likely to run out when the change is spread over a long rather than a short period of time. Third, incremental change doesn’t necessarily give employees more time to adjust; instead, it typically gives them more time to dig in their heels! Rapid change, on the other hand, happens at such speed that employees don’t have the opportunity to find ways to hold back, retrench, or even think about strategies to op- pose the change effort. Finally, proponents of incremental change point to its benefits for minimizing stress, yet there is reason to believe that it often has the opposite effect. Changing slowly can feel like a slow train wreck—the more you see it coming, the more painful it feels. Quicker change, particularly when there are support systems to help employees through the process, may be less painful than changing incrementally.
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1,400 employees were personally interviewed over several months, to hear their vision and aspirations for safety at the company. Interviewers asked questions such as, “Tell me about a time when you felt most safe and secure working in this mill. What in particular helped make you feel safe?” and “Imagine we are truly injury-free! We are the safest mill in the entire global system. . . . What does the mill look like?” The interview information was collated and became the foundation of an appreciative inquiry summit attended by almost 200 employees and other stakeholders (customers, suppliers, community leaders, and global parent leadership). Out of the summit emerged a dozen specific change initiatives to improve safety at Mittal Steel USA. Within a year, the company experienced a dramatic improvement in safety behaviors and statistics.
Appreciative Inquiry Principles Appreciative inquiry embraces five key princi- ples (see Exhibit 15.5).75 One of these is the positive principle, which we describe above. A second principle, called the constructionist principle, takes the position that conversa- tions don’t describe reality; they shape that reality. In other words, how we come to under- stand something depends on the questions we ask and the language we use. Thus, appreciative inquiry requires sensitivity to and proactive management of the words and language used, as well as the thoughts and feelings behind that communication. This re- lates to a third principle, called the simultaneity principle, which states that inquiry and change are simultaneous, not sequential. The moment we ask questions of others, we are changing those people. Furthermore, the questions we ask determine the information we receive, which in turn affects which change intervention we choose. The key learning point from this principle is to be mindful of the effects that the inquiry has on the direc- tion of the change process.
A fourth principle, called the poetic principle, states that organizations are open books, so we have choices in how they may be perceived, framed, and described. The poetic principle is reflected in the notion that a glass of water can be viewed as half full or half empty. Thus, appreciative inquiry actively frames reality in a way that provides construc- tive value for future development. The anticipatory principle, the fifth principle of appre- ciative inquiry, emphasizes the importance of a positive collective vision of the future state. People are motivated and guided by the vision they see and believe in for the fu- ture. Images that are mundane or disempowering will affect current effort and behavior differently than will images that are inspiring and engaging. We noted the importance of visions earlier in this chapter (change agents) and in our discussion of transformational leadership (Chapter 12).
APPRECIATIVE INQUIRY PRINCIPLE DESCRIPTION
Positive principle Focusing on positive events and potential produces more positive, effective, and enduring change.
Constructionist principle How we perceive and understand the change process depends on the questions we ask and language we use throughout that process.
Simultaneity principle Inquiry and change are simultaneous, not sequential.
Poetic principle Organizations are open books, so we have choices in how they may be perceived, framed, and described.
Anticipatory principle People are motivated and guided by the vision they see and believe in for the future.
EXHIBIT 15.5 Five Principles of Appreciative Inquiry
Source: Based on D. L. Cooperrider and D. K. Whitney, Appreciative Inquiry: A Positive Revolution in Change (San Francisco: Berrett-Koehler, 2005), Ch. 7; D. K. Whitney and A. Trosten-Bloom. The Power of Appreciative Inquiry: A Practical Guide to Positive Change, 2d ed. (San Francisco: Berrett-Koehler, 2010), Ch. 3.
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444 Part Four Organizational Processes
The Four-D Model of Appreciative Inquiry Built on these five principles is appreciative inquiry’s “Four-D” process (named after its four stages) shown in Exhibit 15.6. Appreciative inquiry begins with discovery—identifying the positive elements of the ob- served events or organization.76 This might involve documenting positive customer experi- ences elsewhere in the organization. Or it might include interviewing members of another organization to discover its fundamental strengths. As participants discuss their findings, they shift into the dreaming stage by envisioning what might be possible in an ideal organi- zation. By pointing out a hypothetical ideal organization or situation, participants feel safer revealing their hopes and aspirations than they would if they were discussing their own or- ganization or predicament.
As participants make their private thoughts public to the group, the process shifts into the third stage, called designing. Designing involves dialogue in which participants listen with selfless receptivity to each other’s models and assumptions and eventually form a collec- tive model for thinking within the team. In effect, they create a common image of what should be. As this model takes shape, group members shift the focus back to their own situ- ation. In the final stage of appreciative inquiry, called delivering (also known as destiny), participants establish specific objectives and directions for their own organization, on the basis of their model of what will be.
Appreciative inquiry was introduced more than two decades ago, but it really gained popularity only within the past few years. Several success stories of organizational change from appreciative inquiry have emerged in a variety of organizational settings, including the British Broadcasting Corporation, Heidelberg USA, Castrol Marine, Canadian Tire, AVON Mexico, American Express, Green Mountain Coffee Roasters, and Hunter Douglas.77
Although appreciative inquiry has much to offer, it is not always the best approach to changing teams or organizations, and it has not always been successful. This approach de- pends on participants’ ability to let go of the problem-oriented approach, including the “blame game” of determining who may have been responsible for past failures. It also requires leaders who are willing to accept appreciative inquiry’s less structured process.79 Another concern is that research has not yet examined the contingencies of this approach.80 In other words, we don’t yet know under what conditions appreciative inquiry is a useful approach to organizational change and under what conditions it is less effective. Overall, appreciative inquiry can be an effective approach to organizational change, but we are just beginning to understand its potential and limitations.
1. Discovery
Identifying the best of “what is”
2. Dreaming
Envisioning “what might be”
3. Designing
Engaging in dialogue about
“what should be”
4. Delivering
Developing objectives about
“what will be”
EXHIBIT 15.6 The Four-D Model of Appreciative Inquiry
Sources: Based on F. J. Barrett and D. L. Cooperrider, “Generative Metaphor Intervention: A New Approach for Working with Systems Divided by Conflict and Caught in Defensive Perception,” Journal of Applied Behavioral Science 26 (1990), p. 229; D. Whitney and C. Schau, “Appreciative Inquiry: An Innovative Process for Organization Change,” Employment Relations Today 25 (Spring 1998), pp. 11–21; D. L. Cooperrider and D. K. Whitney, Appreciative Inquiry: A Positive Revolution in Change (San Francisco: Berrett-Koehler, 2005), Ch. 3.
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Chapter Fifteen Organizational Change 445
LARGE GROUP INTERVENTION APPROACH Appreciative inquiry can occur in small teams, but it is often designed to involve a large number of people, such as the hundreds of employees who participated in the process at Heidelberg USA. As such, appreciative inquiry is often identified as one of several large group organizational change interventions. Large group interventions adopt a “whole sys- tems” perspective of the change process.81 This means that they view organizations as open systems (see Chapter 1) and assume that change will be more successful when as many em- ployees and other stakeholders as possible associated with the organizational system are in- cluded in the process.82 Large group interventions are highly participative events, because participants discuss their experiences, expectations, and ideas with others, typically in small groups within the large collective setting.
Similar to appreciative inquiry, large group interventions adopt a future-oriented positive focus rather than a past-oriented problem focus. Future search conferences, for instance, are large group interventions typically held over a few days in which participants identify emerging trends and develop strategies for the organization to realize potential under those future conditions. In addition to this strategy development, large group interventions generate a collective vision or sense-making about the organization and its future. This “meaning-making” process is important for the organization’s evolving identity and how participants relate to that identity.
Large group interventions have occurred in a variety of companies and industries. Emerson & Cuming’s chemical manufacturing facility in Canton, Massachusetts, held a large group summit in which managers, supervisors, and production employees were organized into five stakeholder teams to identify initiatives that would improve the plant’s safety, efficiency, and cooperation. Lawrence Public Schools in Kansas conducted a large group session involving parents, teachers, students, community partners, and other stake- holders to help the board allocate resources more effectively. “The goals that were developed at the future search conference reflect what the community envisioned for its school dis- trict,” says superintendent Randy Weseman. Those goals have since become the foundation of the board’s strategic decision making.83
Future search meetings and similar large group change events potentially minimize resistance to change and assist the quality of the change process, but they also have limita- tions.84 One problem is that involving so many people invariably limits the opportunity to
A few years ago, Heidelberg USA, the American arm of the world’s largest printing press manufacturer (Heidelberger Druckmaschinen AG), experienced morale-busting product setbacks as well as downsizing due to the economic recession. To rebuild employee morale and engagement, Heidelberg held a two-day appreciative inquiry summit involving one-third of its staff. Organized into diverse groups from across the organization, participants envisioned what Heidelberg would ideally look like in the future. From these sessions emerged a new vision and greater autonomy for employees to serve customers. “Appreciative inquiry can energize an organization even in tough times because it begins the conversation with possibilities instead of problems,” says a senior executive at Heidelberg USA.78
large group interventions
Highly participative events that view organizations as open systems (i.e., involve as many employees and other stakeholders as possible) and adopt a future and positive focus of change.
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446 Part Four Organizational Processes
contribute and increases the risk that a few people will dominate the process. Another con- cern is that these events focus on finding common ground, which may prevent the partici- pants from discovering substantive differences that interfere with future progress. A third issue is that these events generate high expectations about an ideal future state that are diffi- cult to satisfy in practice. Employees become even more cynical and resistant to change if they do not see meaningful decisions and actions resulting from these meetings.
PARALLEL LEARNING STRUCTURE APPROACH Parallel learning structures are highly participative arrangements composed of people from most levels of the organization who follow the action research model to produce meaningful organizational change. They are social structures developed alongside the formal hierarchy with the purpose of increasing the organization’s learning.85 Ideally, participants in parallel learning structures are sufficiently free from the constraints of the larger organization that they can effectively solve organizational issues.
Royal Dutch/Shell relied on a parallel learning structure to introduce a more customer- focused organization.86 Rather than try to change the entire organization at once, executives held weeklong “retail boot camps” with teams from six countries, consisting of frontline people (such as gas station managers, truck drivers, and marketing professionals). Participants learned about competitive trends in their regions and were taught powerful marketing tools to identify new opportunities. The teams then returned home to study their markets and develop propos- als for improvement. Four months later, boot camp teams returned for a second workshop, at which each proposal was critiqued by Royal/Dutch Shell executives. Each team had 60 days to put its ideas into action; then the teams returned for a third workshop to analyze what worked and what didn’t. This parallel learning process did much more than introduce new marketing ideas. It created enthusiasm in participants that spread contagiously to their coworkers, includ- ing managers above them, when they returned to their home countries.
Cross-Cultural and Ethical Issues in Organizational Change Throughout this chapter, we have emphasized that change is an inevitable and often contin- uous phenomenon, because organizations need to remain aligned with the dynamic external environment. Yet we also need to be aware of cross-cultural and ethical issues with any change process. Many organizational change practices are built around Western cultural assumptions and values, which may differ from and sometimes conflict with assumptions and values in other cultures.87 One possible cross-cultural limitation is that Western organi- zational change models, such as Lewin’s force field analysis, assume that change has a beginning and an ending in a logical linear sequence (that is, a straight line from point A to point B). Yet change is viewed more as a cyclical phenomenon in some cultures, such as the Earth’s revolution around the sun or a pendulum swinging back and forth. Other cultures have more of an interconnected view of change, whereby one change leads to another (often unplanned) change, which leads to another change, and so on, until the change objective is ultimately achieved in a more circuitous way.
Another cross-cultural issue with some organizational change interventions is their assumption that effective organizational change is necessarily punctuated by tension and overt conflict. Indeed, some change interventions encourage such conflict. But this direct confrontation view is incompatible with cultures that emphasize harmony and equilibrium. These cross-cultural differences suggest that a more contingency-oriented perspective is re- quired for organizational change to work effectively in this era of globalization.
Some organizational change practices also face ethical issues.88 One ethical concern is the risk of violating individual privacy rights. The action research model is built on the idea of collecting information from organizational members, which requires that employees provide personal information and reveal emotions that they may not want to divulge.89 A second
LO 15-6
parallel learning structure
A highly participative arrangement composed of people from most levels of the organization who follow the action research model to produce meaningful organizational change.
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Chapter Fifteen Organizational Change 447
ethical concern is that some change activities potentially increase manage- ment’s power by inducing compliance and conformity in organizational members. For instance, action research is a system-wide activity that requires employee participation rather than allowing individuals to get involved vol- untarily. A third concern is that some organizational change interventions undermine the individual’s self-esteem. The unfreezing process requires that participants disconfirm their existing beliefs, sometimes including their own competence at certain tasks or interpersonal relations.
Organizational change is usually more difficult than it initially seems. Yet the dilemma is that most organizations operate in hyperfast environments that demand continuous and rapid adaptation. Organizations survive and gain competitive advantage by mastering the complex dynamics of moving people through the continuous process of change as quickly as the external environment is changing.
Organizational Behavior: The Journey Continues Nearly 100 years ago, the industrialist Andrew Carnegie said: “Take away my people, but leave my factories, and soon grass will grow on the factory floors. Take away my factories, but leave my people, and soon we will have a new and better factory.”90 Carnegie’s statement reflects the message woven throughout this textbook: Organizations are not buildings or machinery or financial assets; rather, they are the people in them. Organizations are human entities—full of life, sometimes fragile, and always exciting.
“Take away my people, but leave my factories, and soon grass will grow on the factory floors. Take away my factories, but leave my people, and soon we will have a new and better factory.”
—Attributed to Andrew Carnegie
15-1 Describe the elements of Lewin’s force field analysis model.
Lewin’s force field analysis model states that all systems have driving and restraining forces. Change occurs through the pro- cess of unfreezing, changing, and refreezing. Unfreezing pro- duces disequilibrium between the driving and restraining forces. Refreezing realigns the organization’s systems and structures with the desired behaviors.
15-2 Discuss the reasons people resist organizational change and how change agents should view this resistance.
Restraining forces are manifested as employee resistance to change. The main reasons people resist change are the negative valence of change, fear of the unknown, not-invented-here syn- drome, breaking routines, incongruent team dynamics, and in- congruent organizational systems. Resistance to change should be viewed as a resource, not an inherent obstacle to change. Change agents need to view resistance as task conflict rather than relationship conflict. Resistance is a signal that the change agent has not sufficiently strengthened employee readiness for change. It is also a form of voice, so discussion potentially im- proves procedural justice.
15-3 Outline six strategies for minimizing resistance to change and debate ways to effectively create an urgency to change.
Organizational change requires employees to have an urgency for change. This typically occurs by informing them about driv- ing forces in the external environment. Urgency to change also develops by putting employees in direct contact with customers. Leaders often need to create an urgency to change before the external pressures are felt, and this can occur through a vision of a more appealing future. Resistance to change may be minimized by keeping employ- ees informed about what to expect from the change effort (com- municating); teaching employees valuable skills for the desired future (learning); involving them in the change process; helping employees cope with the stress of change; negotiating trade-offs with those who will clearly lose from the change effort; and us- ing coercion (sparingly and as a last resort).
15-4 Discuss how leadership, coalitions, social networks, and pilot projects assist organizational change.
Every successful change also requires transformational leaders with a clear, well-articulated vision of the desired future state.
chapter summary
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critical thinking questions 1. Chances are that the school you are attending is currently
undergoing some sort of change to adapt more closely with its environment. Discuss the external forces that are driving the change. What internal drivers for change also exist?
2. Use Lewin’s force field analysis to describe the dynamics of organizational change at Ford Motor Company. The Global Connections 15.2 feature about Ford’s transformation provides some information, but think about other forces for and against change beyond the information provided in this vignette.
3. Employee resistance is a symptom, not a problem, in the change process. What are some of the real problems that may underlie employee resistance?
4. Senior management of a large multinational corporation is planning to restructure the organization. Currently, the or- ganization is decentralized around geographic areas so that the executive responsible for each area has considerable au- tonomy over manufacturing and sales. The new structure will transfer power to the executives responsible for different product groups; the executives responsible for each geo- graphic area will no longer be responsible for manufacturing in their area but will retain control over sales activities. Describe two types of resistance senior management might encounter from this organizational change.
5. Discuss the role of reward systems in organizational change. Specifically, identify where reward systems relate to Lewin’s force field model and where they undermine the organiza- tional change process.
6. Web Circuits is a Malaysian-based custom manufacturer for high-technology companies. Senior management wants to introduce lean management practices to reduce production costs and remain competitive. A consultant has recom- mended that the company start with a pilot project in one department and, when successful, diffuse these practices to other areas of the organization. Discuss the advantages of this recommendation, and identify three ways (other than the pilot project’s success) to make diffusion of the change effort more successful.
7. What is the role of formal and informal networks in organi- zations interested in undergoing change?
8. Suppose that you are vice president of branch services at the Bank of East Lansing. You notice that several branches have consistently low customer service ratings, even though there are no apparent differences in resources or staff characteris- tics. Describe an appreciative inquiry process in one of these branches that might help overcome this problem.
action research, p. 440 appreciative inquiry, p. 441 force field analysis, p. 426
large group interventions, p. 445 parallel learning structure, p. 446
refreezing, p. 427 unfreezing, p. 427
key terms
They also need the assistance of several people (a guiding coali- tion) who are located throughout the organization. Change also occurs more informally through social networks. Viral change operates through social networks using influencers. Many organizational change initiatives begin with a pilot proj- ect. The success of the pilot project is then diffused to other parts of the organization. This occurs by applying the MARS model, including motivating employees to adopt the pilot project’s meth- ods, training people to know how to adopt these practices, helping clarify how the pilot can be applied to different areas, and provid- ing time and resources to support this diffusion.
15-5 Describe and compare action research, appreciative inquiry, large group interventions, and parallel learn- ing structures as formal approaches to organizational change.
Action research is a highly participative, open-systems approach to change management that combines an action orientation (changing attitudes and behavior) with research orientation (testing theory). It is a data-based, problem-oriented process that diagnoses the need for change, introduces the intervention, and then evaluates and stabilizes the desired changes. Appreciative inquiry embraces the positive organizational be- havior philosophy by focusing participants on the positive and
possible. Along with this positive principle, this approach to change applies the constructionist, simultaneity, poetic, and anticipatory principles. The four stages of appreciative inquiry include discovery, dreaming, designing, and delivering. Large group interventions are highly participative events that view organizations as open systems (i.e., involve as many employees and other stakeholders as possible) and adopt a future and positive focus of change. Parallel learning struc- tures rely on social structures developed alongside the formal hierarchy with the purpose of increasing the organization’s learning. They are highly participative arrangements, com- posed of people from most levels of the organization who follow the action research model to produce meaningful orga- nizational change.
15-6 Discuss two cross-cultural and three ethical issues in organizational change.
One significant concern is that organizational change theories developed with a Western cultural orientation potentially con- flict with cultural values in some other countries. Also, organiza- tional change practices can raise one or more ethical concerns, including increasing management’s power over employees, threatening individual privacy rights, and undermining individ- ual self-esteem.
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CASE STUDY: TRANSACT INSURANCE CORPORATION TransAct Insurance Corporation (TIC) provides automobile insurance throughout the Southeastern United States. Last year, a new president was hired by TIC’s Board of Directors to improve the company’s competitiveness and customer ser- vice. After spending several months assessing the situation, the new president introduced a strategic plan to strengthen TIC’s competitive position. He also replaced three vice- presidents. Jim Leon was hired as vice-president of Claims, TIC’s largest division with 1,500 employees, 50 claims center managers, and 5 regional directors. Jim immediately met with all claims managers and directors and visited employees at TIC’s 50 claims centers. As an out- sider, this was a formidable task, but his strong interpersonal skills and uncanny ability to remember names and ideas helped him through the process. Through these visits and discussions, Jim discovered that the claims division had been managed in a relatively authoritarian, top-down manner. He could also see that morale was very low and employee–management relations were guarded. High workloads and isolation (adjusters work in tiny cubicles) were two other common complaints. Several managers acknowledged that the high turnover among claims adjusters was partly due to these conditions. Following discussions with TIC’s president, Jim decided to make morale and supervisory leadership his top priority. He initiated a divisional newsletter with a tear-off feedback form for employees to register their comments. He announced an open-door policy in which any claims division employee could speak to him directly and confidentially without going first to the immediate supervisor. Jim also fought organiza- tional barriers to initiate a flex-time program so that employ- ees could design work schedules around their needs. This program later became a model for other areas of TIC. One of Jim’s most pronounced symbols of change was the “Claims Management Credo” outlining the philosophy that every claims manager would follow. At his first meeting with the complete claims management team, Jim presented a list of what he thought were important philosophies and actions of effective managers. The management group was asked to select and prioritize items from this list. They were told that the resulting list would be the division’s management philos- ophy and all managers would be held accountable for abiding by its principles. Most claims managers were uneasy about this process, but they also understood that the organization was under competitive pressure and that Jim was using this exercise to demonstrate his leadership. The claims managers developed a list of 10 items, such as encouraging teamwork, fostering a trusting work environment, setting clear and reasonable goals, and so on. The list was circu- lated to senior management in the organization for their com- ment and approval, and sent back to all claims managers for their endorsement. Once this was done, a copy of the final document was sent to every claims division employee. Jim also announced plans to follow up with an annual survey to evalu- ate each claims manager’s performance. This concerned the managers, but most of them believed that the credo exercise
was a result of Jim’s initial enthusiasm and that he would be too busy to introduce a survey after settling into the job. One year after the credo had been distributed, Jim an- nounced that the first annual survey would be conducted. All claims employees would complete the survey and return it confidentially to the human resources department, where the survey results would be compiled for each claims center man- ager. The survey asked about the extent to which the man- ager had lived up to each of the 10 items in the credo. Each form also provided space for comments. Claims center managers were surprised that a survey would be conducted, but they were even more worried about Jim’s statement that the results would be shared with employ- ees. What “results” would employees see? Who would distrib- ute these results? What happens if a manager gets poor ratings from his or her subordinates? “We’ll work out the details later,” said Jim in response to these questions. “Even if the survey results aren’t great, the information will give us a good baseline for next year’s survey.” The claims division survey had a high response rate. In some centers, every employee completed and returned a form. Each report showed the claim center manager’s average score for each of the 10 items as well as how many employees rated the man- ager at each level of the five-point scale. The reports also in- cluded every comment made by employees at that center. No one was prepared for the results of the first survey. Most managers received moderate or poor ratings on the 10 items. Very few managers averaged above 3.0 (out of a 5-point scale) on more than a couple of items. This suggested that, at best, employees were ambivalent about whether their claims center manager had abided by the 10 management philosophy items. The comments were even more devastating than the ratings. Comments ranged from mildly disap- pointed to extremely critical of their claims manager. Em- ployees also described their long-standing frustration with TIC, high workloads, and isolated working conditions. Sev- eral people bluntly stated that they were skeptical about the changes that Jim had promised. “We’ve heard the promises before, but now we’ve lost faith,” wrote one claims adjuster. The survey results were sent to each claims manager, the regional director, and employees at the claims center. Jim in- structed managers to discuss the survey data and comments with their regional manager and directly with employees. The claims center managers, who thought employees only received average scores, went into shock when they realized that the re- ports included individual comments. Some managers went to their regional director, complaining that revealing the personal comments would ruin their careers. Many directors sympa- thized, but the results were already available to employees. When Jim heard about these concerns, he agreed that the results were lower than expected and that the comments should not have been shown to employees. After discussing the situation with his directors, he decided that the discus- sion meetings between claims managers and their employees should proceed as planned. To delay or withdraw the reports
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SELF-ASSESSMENT
ARE YOU TOLERANT OF CHANGE? PURPOSE This exercise is designed to help you under- stand how people differ in their tolerance for change.
INSTRUCTIONS Read each of the statements following and circle the response that best fits your personal belief. Then, use the scoring key in the Appendix at the end of this
book to calculate your results. 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 the concept measured by this scale and its implications for managing change in organiza- tional settings.
TEAM EXERCISE: STRATEGIC CHANGE INCIDENTS PURPOSE This exercise is designed to help you identify strategies for facilitating organizational change in various situations.
INSTRUCTIONS
1. The instructor will place students into teams, and each team will be assigned one or both of the scenarios pre- sented next.
2. Each team will diagnose the scenario to determine the most appropriate set of change management practices. Where appropriate, these practices should (a) create an urgency to change, (b) minimize resistance to change, and (c) refreeze the situation to support the change ini- tiative. Each of these scenarios is based on real events.
3. Each team will present and defend its change manage- ment strategy. Class discussion regarding the appropriate- ness and feasibility of each strategy will occur after all teams assigned the same scenario have presented. The in- structor will then describe what the organizations actually did in these situations.
SCENARIO 1: GREENER TELCO The board of directors at a large telephone company wants its executives to make the organization more environmentally friendly by encouraging employees to reduce waste in the workplace. Government and other stakeholders expect the company to
take this action and be publicly successful. Consequently, the chief executive officer wants to significantly reduce paper us- age, trash, and other waste throughout the company’s many widespread offices. Unfortunately, a survey indicates that em- ployees do not value environmental objectives and do not know how to “reduce, reuse, recycle.” As the executive re- sponsible for this change, you have been asked to develop a strategy that might bring about meaningful behavioral change toward this environmental goal. What would you do?
SCENARIO 2: GO FORWARD AIRLINE A major airline had experienced a decade of rough turbulence, includ- ing two bouts of bankruptcy protection, 10 managing direc- tors, and morale so low that employees had removed the company’s logo from their uniforms out of embarrassment. Service was terrible, and the airplanes rarely arrived or left the terminal on time. This was costing the airline significant amounts of money in passenger layovers. Managers were par- alyzed by anxiety, and many had been with the firm so long that they didn’t know how to set strategic goals that worked. One-fifth of all flights were losing money, and the company overall was near financial collapse (just three months to de- faulting on payroll obligations). You and the newly hired CEO must get employees to quickly improve operational ef- ficiency and customer service. What actions would you take to bring about these changes?
450
would undermine the credibility and trust that Jim was try- ing to develop with employees. However, the regional direc- tor attended the meeting in each claims center to minimize direct conflict between the claims center manager and employees. Although many of these meetings went smoothly, a few created harsh feelings between managers and their employ- ees. The source of some comments were easily identified by their content, and this created a few delicate moments in several sessions. A few months after these meetings, two claims center managers quit and three others asked for transfers back to nonmanagement positions in TIC. Mean- while, Jim wondered how to manage this process more
effectively, particularly since employees expected another survey the following year.
Discussion Questions
1. What symptom(s) exist in this case to suggest that something has gone wrong?
2. What are the main causes of these symptoms? 3. What actions should the company take to correct these
problems?
© 2000, Steven L. McShane and Terrance J. Bogyo. This case is based on actual events, but names, industry, and some characteristics have been changed to maintain anonymity.
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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.
Source: Adapted from D. L. McClain, “The Mstat-I: A New Measure of an Individual’s Tolerance for Ambiguity,” Educational and Psychological Measurement 53, no. 1 (1993), pp. 183–89; S. Budner, “Intolerance of Ambiguity as a Personality Variable,” Journal of Personality 30 (1962), pp. 29–50.
Tolerance of Change Scale
Source: Adapted from D L McClain “The Mstat I: A New Measure of an Individual’s Tolerance for Ambiguity ” Educational and Psychological Measurement 53t
1. I generally prefer the unexpected to the predictable.
2. I am much more comfortable at events where I know most of the people there.
3. I don’t consider new situations any more threatening than familiar situations.
4. I prefer solving problems that have only one “best” solution rather than many solutions.
5. I dislike ambiguous situations.
6. I avoid situations that are too complicated for me to easily understand.
7. I like situations that can be interpreted in more than one way.
8. I cope well with unexpected events.
9. Familiar situations are always preferable to me than unfamiliar situations.
10. I enjoy working in ambiguous situations.
TO WHAT EXTENT DOES EACH STATEMENT DESCRIBE YOU? INDICATE YOUR LEVEL OF AGREEMENT BY MARKING THE STRONGLY MODERATELY SLIGHTLY SLIGHTLY MODERATELY STRONGLY APPROPRIATE RESPONSE ON THE RIGHT AGREE AGREE AGREE NEUTRAL DISAGREE DISAGREE DISAGREE
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Case 1 A MIR Kiss?
Case 2 Arctic Mining Consultants
Case 3 Chengdo Bus Group
Case 4 Fran Hayden Joins Dairy Engineering
Case 5 From Lippert-Johanson Incorporated to Fenway Waste Management
Case 6 From REO to Nuclear to Nucor
Case 7 Going to the X-Stream
Case 8 The Regency Grand Hotel
Case 9 Simmons Laboratories
Case 10 Star Enterprises—Rita’s Issues at Work
Case 11 Tamarack Industries
Case 12 The Outstanding Faculty Award
CASE 1: A MIR KISS? By Steven L. McShane, The University of Western Australia
A team of psychologists at Moscow’s Institute for Biomedical Problems (IBMP) wanted to learn more about the dynamics of long-term isolation in space. This knowledge would be ap- plied to the International Space Station, a joint project of several countries that would send people into space for more than six months. It would eventually include a trip to Mars taking up to three years. IBMP set up a replica of the Mir space station in Moscow. They then arranged for three international researchers from Japan, Canada, and Austria to spend 110 days isolated in a chamber the size of a train car. This chamber joined a smaller chamber where four Russian cosmonauts had already com- pleted half of their 240 days of isolation. This was the first time an international crew was involved in the studies. None of the participants spoke English as their first language, yet they communicated throughout their stay in English at vary- ing levels of proficiency. Judith Lapierre, a French-Canadian, was the only female in the experiment. Along with a PhD in public health and social medicine, Lapierre studied space sociology at the International Space University in France, and conducted iso- lation research in the Antarctic. This was her fourth trip to Russia, where she had learned the language. The mission was supposed to have a second female participant from the Japanese space program, but she was not selected by IBMP. The Japanese and Austrian participants viewed the par- ticipation of a woman as a favorable factor, says Lapierre. For example, to make the surroundings more comfortable, they rearranged the furniture, hung posters on the wall, and put a tablecloth on the kitchen table. “We adapted our environment, whereas the Russians just viewed it as something to be endured,” she explains. “We decorated for Christmas, because I’m the kind of person who likes to host people.”
NEW YEAR’S EVE TURMOIL
Ironically, it was at one of those social events, the New Year’s Eve party, that events took a turn for the worse. After drink- ing vodka (allowed by the Russian space agency), two of the Russian cosmonauts got into a fistfight that left blood splat- tered on the chamber walls. At one point, a colleague hid the knives in the station’s kitchen because of fears that the two Russians were about to stab each other. The two cosmonauts, who generally did not get along, had to be restrained by other men. Soon after that brawl, the Russian commander grabbed Lapierre, dragged her out of view of the television monitor- ing cameras, and kissed her aggressively—twice. Lapierre fought him off, but the message didn’t register. He tried to kiss her again the next morning. The next day, the international crew complained to IBMP about the behavior of the Russian cosmonauts. The Russian institute apparently took no action against any of the aggres- sors. Instead, the institute’s psychologists replied that the incidents were part of the experiment. They wanted crew members to solve their personal problems with mature dis- cussion, without asking for outside help. “You have to under- stand that Mir is an autonomous object, far away from anything,” Vadim Gushin, the IBMP psychologist in charge of the project, explained after the experiment had ended in March. “If the crew can’t solve problems among themselves, they can’t work together.” Following IBMP’s response, the international crew wrote a scathing letter to the Russian institute and the space agen- cies involved in the experiment. “We had never expected such events to take place in a highly controlled scientific ex- periment where individuals go through a multistep selection process,” they wrote. “If we had known . . . we would not have joined it as subjects.” The letter also complained about IBMP’s response to their concerns.
additional CASES
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Additional Cases 453
Informed of the New Year’s Eve incident, the Japanese space program convened an emergency meeting on January 2nd to address the incidents. Soon after, the Japanese team member quit, apparently shocked by IBMP’s inaction. He was replaced with a Russian researcher on the international team. Ten days after the fight—a little over a month after the international team began the mission—the doors between the Russian and international crew’s chambers were barred at the request of the international research team. Lapierre later emphasized that this action was taken because of concerns about violence, not the incident involving her.
A STOLEN KISS OR SEXUAL HARASSMENT
By the end of the experiment in March, news of the fistfight between the cosmonauts and the commander’s attempts to kiss Lapierre had reached the public. Russian scientists at- tempted to play down the kissing incident by saying that it was one fleeting kiss, a clash of cultures, and a female partic- ipant who was too emotional. “In the West, some kinds of kissing are regarded as sexual harassment. In our culture it’s nothing,” said Russian scientist Vadim Gushin in one interview. In another interview, he ex- plained: “The problem of sexual harassment is given a lot of
attention in North America but less in Europe. In Russia it is even less of an issue, not because we are more or less moral than the rest of the world; we just have different priorities.” Judith Lapierre says the kissing incident was tolerable compared to this reaction from the Russian scientists who conducted the experiment. “They don’t get it at all,” she complains. “They don’t think anything is wrong. I’m more frustrated than ever. The worst thing is that they don’t realize it was wrong.” Norbert Kraft, the Austrian scientist on the international team, also disagreed with the Russian interpretation of events. “They’re trying to protect themselves,” he says. “They’re trying to put the fault on others. But this is not a cultural issue. If a woman doesn’t want to be kissed, it is not acceptable.”
Sources: G. Sinclair Jr., “If You Scream in Space, Does Anyone Hear?” Winnipeg Free Press , May 5, 2000, p. A4; S. Martin, “Reining in the Space Cowboys,” Globe & Mail , April 19, 2000, p. R1; M. Gray, “A Space Dream Sours,” Maclean’s , April 17, 2000, p. 26; E. Niiler, “In Search of the Perfect Astronaut,” Boston Globe , April 4, 2000, p. E4; J. Tracy, “110-Day Isolation Ends in Sullen . . . Isolation,” Moscow Times , March 30, 2000, p. 1; M. Warren, “A Mir Kiss?” Daily Telegraph (London), March 30, 2000, p. 22; G. York, “Canadian’s Harassment Complaint Scorned,” Globe & Mail , March 25, 2000, p. A2; S. Nolen, “Lust in Space,” Globe & Mail , March 24, 2000, p. A3.
CASE 2: ARCTIC MINING CONSULTANTS By Steven L. McShane, The University of Western Australia, and Tim Neale
Tom Parker enjoyed working outdoors. At various times in the past, he worked as a ranch hand, high steel rigger, head- stone installer, prospector, and geological field technician. Now 43, Parker is a geological field technician and field coor- dinator with Arctic Mining Consultants. He has specialized knowledge and experience in all nontechnical aspects of min- eral exploration, including claim staking, line cutting and grid installation, soil sampling, prospecting, and trenching. He is responsible for hiring, training, and supervising field assistants for all of Arctic Mining Consultants’ programs. Field assis- tants are paid a fairly low daily wage (no matter how long they work, which may be up to 12 hours or more) and are pro- vided meals and accommodation. Many of the programs are operated by a project manager who reports to Parker. Parker sometimes acts as a project manager, as he did on a job that involved staking 15 claims near Eagle Lake, Alaska. He selected John Talbot, Greg Boyce, and Brian Millar, all of whom had previously worked with Parker, as the field assis- tants. To stake a claim, the project team marks a line with flagging tape and blazes along the perimeter of the claim, cut- ting a claim post every 500 yards (called a “length”). The 15 claims would require almost 60 miles of line in total. Parker had budgeted seven days (plus mobilization and demobiliza- tion) to complete the job. This meant that each of the four stakers (Parker, Talbot, Boyce, and Millar) would have to
complete a little over seven “lengths” each day. The following is a chronology of the project.
DAY 1
The Arctic Mining Consultants crew assembled in the morn- ing and drove to Eagle Lake, from where they were flown by helicopter to the claim site. On arrival, they set up tents at the edge of the area to be staked, and agreed on a schedule for cooking duties. After supper, they pulled out the maps and discussed the job—how long it would take, the order in which the areas were to be staked, possible helicopter landing spots, and areas that might be more difficult to stake. Parker pointed out that with only a week to complete the job, everyone would have to average seven and a half lengths per day. “I know that is a lot,” he said, “but you’ve all staked claims before and I’m confident that each of you is capable of it. And it’s only for a week. If we get the job done in time, there’s a $300 bonus for each man.” Two hours later, Parker and his crew members had developed what seemed to be a workable plan.
DAY 2
Millar completed six lengths, Boyce six lengths, Talbot eight, and Parker eight. Parker was not pleased with Millar’s or Boyce’s production. However, he didn’t make an issue of it, thinking that they would develop their “rhythm” quickly.
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DAY 3
Millar completed five and a half lengths, Boyce four, and Talbot seven. Parker, who was nearly twice as old as the other three, completed eight lengths. He also had enough time remaining to walk over and check the quality of stakes that Millar and Boyce had completed, then walk back to his own area for helicopter pickup back to the tent site. That night Parker exploded with anger. “I thought I told you that I wanted seven and a half lengths a day!” he shouted at Boyce and Millar. Boyce said that he was slowed down by unusually thick underbrush in his assigned area. Millar said that he had done his best and would try to pick up the pace. Parker did not mention that he had inspected their work. He explained that as far as he was concerned, the field assistants were supposed to finish their assigned area for the day, no matter what. Talbot, who was sharing a tent with Parker, talked to him later. “I think that you’re being a bit hard on them, you know. I know that it has been more by luck than anything else that I’ve been able to do my quota. Yesterday I only had five lengths done after the first seven hours and there was only an hour before I was supposed to be picked up. Then I hit a patch of really open bush, and was able to do three lengths in 70 minutes. Why don’t I take Millar’s area tomorrow and he can have mine? Maybe that will help.” “Conditions are the same in all of the areas,” replied Parker, rejecting Talbot’s suggestion. “Millar just has to try harder.”
DAY 4
Millar did seven lengths and Boyce completed six and a half. When they reported their production that evening, Parker grunted uncommunicatively. Parker and Talbot did eight lengths each.
DAY 5
Millar completed six lengths, Boyce six, Talbot seven and a half, and Parker eight. Once again Parker blew up, but he concentrated his diatribe on Millar. “Why don’t you do what you say you are going to do? You know that you have to do seven and a half lengths a day. We went over that when we first got here, so why don’t you do it? If you aren’t willing to do the job then you never should have taken it in the first place!” Millar replied by saying that he was doing his best, that he hadn’t even stopped for lunch, and that he didn’t know how he could possibly do any better. Parker launched into him again: “You have got to work harder! If you put enough effort into it, you will get the area done!” Later Millar commented to Boyce, “I hate getting dumped on all the time! I’d quit if it didn’t mean that I’d have to walk 50 miles to the highway. And besides, I need the bonus money. Why doesn’t he pick on you? You don’t get any more done than me; in fact, you usually get less. Maybe if you did a bit more he wouldn’t be so bothered about me.” “I only work as hard as I have to,” Boyce replied.
DAY 6
Millar raced through breakfast, was the first one to be dropped off by the helicopter, and arranged to be the last one picked up. That evening the production figures were Millar eight and a quarter lengths, Boyce seven, and Talbot and Parker eight each. Parker remained silent when the field assis- tants reported their performance for the day.
DAY 7
Millar was again the first out and last in. That night, he collapsed in an exhausted heap at the table, too tired to eat. After a few moments, he announced in an abject tone, “Six lengths. I worked like a dog all day and I only got a lousy six lengths!” Boyce completed five lengths, Talbot seven, and Parker seven and a quarter. Parker was furious. “That means we have to do a total of 34 lengths tomorrow if we are to finish this job on time!” With his eyes directed at Millar, he added: “Why is it that you never finish the job? Don’t you realize that you are part of a team, and that you are letting the rest of the team down? I’ve been checking your lines and you’re doing too much blazing and wasting too much time making picture-perfect claim posts! If you worked smarter, you’d get a lot more done!”
DAY 8
Parker cooked breakfast in the dark. The helicopter drop-offs began as soon as morning light appeared on the horizon. Parker instructed each assistant to complete eight lengths and, if they finished early, to help the others. Parker said that he would finish the other 10 lengths. Helicopter pickups were arranged for one hour before dark. By noon, after working as hard as he could, Millar had only completed three lengths. “Why bother,” he thought to himself, “I’ll never be able to do another five lengths before the helicopter comes, and I’ll catch the same amount of abuse from Parker for doing six lengths as for seven and a half.” So he sat down and had lunch and a rest. “Boyce won’t finish his eight lengths either, so even if I did finish mine, I still wouldn’t get the bonus. At least I’ll get one more day’s pay this way.” That night, Parker was livid when Millar reported that he had completed five and a half lengths. Parker had done ten and a quarter lengths, and Talbot had completed eight. Boyce proudly announced that he finished seven and a half lengths, but sheepishly added that Talbot had helped him with some of it. All that remained were the two and a half lengths that Millar had not completed. The job was finished the next morning and the crew demobilized. Millar has never worked for Arctic Mining Consultants again, despite being offered work several times by Parker. Boyce sometimes does staking for Arctic, and Talbot works full time with the company.
© Copyright, Steven L. McShane and Tim Neale. This case is based on actual events, but names and some characteristics have been changed to maintain anonymity.
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CASE 3: CHENGDU BUS GROUP Runtian Jing , The University of Electronic Science and Technology of China
The Chengdu Bus Group (CBG) is a Chinese, state-owned enterprise with more than 4,000 buses and 14,000 employ- ees. A few years ago, CBG encountered serious problems. The primary issue was the company’s management systems, but it also faced a considerable financial crisis. Complaints against CBG from its many customers were becoming in- creasingly common and the operations of the company were in disarray. At the end of a troubled year, Dr. She Chen was appointed as the director (CEO) of CBG. Dr. Chen had proven himself in previous positions as a thoughtful and insightful manager. He had accumulated not only a wealth of experience on ef- fective leadership in Chinese society, but also in the field of management theory. Additionally, he had earned a Ph.D.—a very rare achievement in the Chinese business community. Due to the seriousness of CBG’s problems, the mayor of Chengdu gave Dr. Chen just three years to reform CBG. This was too short a time to gradually transform the organi- zation, including the critically flawed management system and financial situation. Therefore, Dr. Chen had to imple- ment rapid change and take risks to carry out a successful re- form in the required time frame, even though he knew this would be met with great resistance from CBG’s employees and many stakeholders. After taking up his new position, Dr. Chen conducted a careful investigation into the functioning of CBG, after which he formulated a series of reform measures. He then discussed his ideas and proposed changes with the mayor and leaders of Chengdu city, obtaining full support in both au- thorization and funding before implementing the organiza- tional changes in the company.
FAST-PACED MANAGERIAL REFORM
Because CBG is an old, state-owned enterprise, very compli- cated working relationships and politics existed among the 14,000 employees. Dr. Chen knew that this would make it very difficult to carry out large-scale organizational reforms within the company. However, after two months of examina- tion, Dr. Chen felt he had accurately grasped the important characteristics of the 533 managers in the company. He then carefully designed a reform plan and schedule for the manag- ers and their positions. To avoid the influence of complicated guanxi (special relationships) among the managers, and to avoid the managers forming solid opposition to his changes, Dr. Chen implemented the reforms with a fast, accurate and ambitious strategy. The changes were made quickly, precisely and without compromise. This strategy meant that adjustments to the managerial positions were completed before the managers could effec- tively react to what was happening and potentially disrupt
the process. Nonetheless, when they realized what had hap- pened, they began to protest. Dr. Chen was very calm and simply said to them: “After all these events have passed by, you will have many different impressions about me and my reforms. Although such an adjustment may bring some loss to you, in the future the commendation from others will be more than the condemnation. All change must face resis- tance, complaint, and even rejection. What I have done is not for myself, but for the company.”
SIMPLIFYING THE BRANCH COMPANY STRUCTURE
Another notable reform that Dr. Chen successfully imple- mented involved the branch companies of CBG. The organization had four branch companies; two were wholly state-owned, while the other two were joint ventures with external investors. In addition to operating bus routes, each company owned buses, bus stations, repair workshops, and other facilities and equipment required to run their bus ser- vices. However, this created significant problems and ineffi- ciencies as each company ran its operations independently of the other companies, and did not share their stations or repair workshops—essentially, the four companies were in direct competition with each other. Furthermore, different routes throughout the city had quite different profit rates. Without any formal authority co- ordinating the companies, or implementing policies and rules, there was overcompetition for the desirable high-profit routes, resulting in inefficiencies and losses for all of the com- panies. To rectify this situation, Dr. Chen arranged for CBG to buy back the external equity of the joint ventures, and thereby changed the branch operations to purely state-owned subsidiaries. He then removed the overservicing on the high- profit routes, and redeployed the surplus buses and employ- ees from these routes to develop the potential profitability of other routes under the principle of optimization. Additionally, all of the routes were rezoned to fall under the operations of four specific areas of the city, forming the eastern, western, southern, and northern bus companies. All of the bus stations were amalgamated into a single station company, and all the repair workshops amalgamated into a single repair company. These reforms made it possible for each of the four bus companies to obtain services from the station company or the repair company anywhere in the city, and thus greatly reduce resource wastage, over competition, and operating costs.
SALARIES AND REWARDS
Dr. Chen also found that the salary system of CBG was questionable in both fairness and efficiency. For example, the front-line staff generally worked very hard, however their
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salaries were lower than the back-up staff who didn’t work as hard. This had resulted in low job satisfaction and high turn- over rates among the front-line staff. After careful evaluation of the different jobs’ tasks and demands, Dr. Chen distin- guished the tasks and demands of the front-line and back-up staff. Despite criticism from back-up staff and some manag- ers, he insisted in increasing the wages and bonuses of the front-line staff. To reduce the frequent accidents by bus drivers, Dr. Chen linked the wage system to each driver’s “safe mileage accumu- lation program.” If accidents were occurring, the amount of “safe mileage accumulation” decreased and, as a result, the level of wages. Conversely, if a driver had few accidents, or none at all, wages would increase. This meant that a driver who had not been involved in any accidents could earn an even higher wage than the average middle manager! Such a policy quickly improved the safety awareness and practices of
the drivers. Furthermore, Dr. Chen encouraged managers to use reward instead of punishment to motivate their employ- ees, and abolished more than 50 penalty provisions.
THE RESULTS OF REFORM
After just two years of Dr. She Chen’s reforms, Chengdu Bus Group achieved remarkable results. The management was greatly improved, the efficiency and profitability of CBG was enhanced, and the employees were performing better and were significantly happier. Through the safe mileage accumu- lation system, the drivers’ safety awareness and quality of service substantially improved, and the rate of accidents de- creased greatly. The public attitude toward the company and its social evaluation also improved significantly. CBG was awarded for its successful reform by the State-owned Assets Supervision and Administration Commission (SASAC) of Chengdu city in 2008.
CASE 4: FRAN HAYDEN JOINS DAIRY ENGINEERING By Glyn Jones, University of Waikato, New Zealand
BACKGROUND
Dairy Engineering (NZ) Ltd has its headquarters in Hamilton, New Zealand, with manufacturing plants in South Auckland and Christchurch. The company manu- factures equipment for the dairy industry. In its early years it focused on the domestic market but in the last five years has expanded into the export market. The company employs 450 people, which makes it a large company by New Zealand standards. The case focuses on events in the Accounting Department at head office which is organized into two sections, Cost Accounting and Management Information Services (MIS). The Accounting Department is structured as is shown in the table following.
FRAN, THE NEW GRADUATE
Fran Hayden is in the final year of her Bachelor of Management Studies (BMS) degree at the University of Waikato where she has proved to be a high achiever. Fran was interested in a position with Dairy Engineering because of the opportunity to gain practical experience, the higher starting salary offered in the industry, and because her boy- friend lived there. Fran sent her curriculum vitae to the company and two weeks later she was invited to an interview with the Chief Accountant. She was surprised at the end of the interview to be offered the position of Assistant Cost Accountant. Fran said she would like to think it over. Two weeks later when she had still not replied she received a telephone call from Rob asking if she was going to take the position. Still not totally convinced, Fran decided to accept the offer.
THE FIRST DAY AT WORK
Like many of her peers, Fran was glad to be leaving her uni- versity after four years of study. She was looking forward to having money to spend as well as reducing her student debt. In order to ‘look the part’ she had gone further into debt to buy new ‘corporate clothing.’ On reporting to the Account- ing Department she got her first shock in the ‘real world.’ No one was expecting her! Even worse she found that there was no vacancy for her in Cost Accounting! Instead, she had been assigned to management information systems (MIS)! Fran was escorted to MIS by one of her new colleagues, Mike, who introduced her to two coworkers, Tom and Adrian. They seemed to be a friendly bunch, as apparently was her boss, Peter Bruton, who explained that her main duties were to assist with compiling information for the monthly Management Report known as “Big Brother.” After two weeks the time came for compiling “Big Brother.” Fran found that her part was almost entirely clerical and consisted of photocopying, collating, binding, punching, and stamping the pages of the report. She then had to hand-deliver copies of the Report to the senior manager at headquarters. After “Big Brother” was completed, Fran found again she had little to do. She began to wonder why MIS needed four people.
THE BIG OPPORTUNITY
One afternoon, out of the blue, the Chief Accountant called Fran to his office to tell her about an upcoming manage- ment workshop to be held in Auckland on Performance Measurement. Rob talked about the importance of staff de- velopment and that he would like to see one of his younger staff attending the workshop. He then asked Fran if she
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would be interested. She jumped at the opportunity. Unfor- tunately her boss was away on two weeks leave at the time, but Rob said he would talk with Peter. Fran enjoyed the workshop, particularly rubbing shoul- ders with experienced managers, living in an Auckland hotel, and generally acting the management part. Even before re- turning to Hamilton, she wrote a detailed report on the workshop for the Chief Accountant. On her return to Hamilton, however she, found all was far from well. On Sunday evening, Fran was telephoned by her colleague Mike with some disturbing news. When Peter returned to work to find that Fran was in Auckland, he was furious, com- plaining that he had not been consulted and that his author- ity was being undermined.
Peter: “Fran is no longer employed in his section.”
Fran returned to work full of trepidation only to find that the expected encounter with her boss did not take place because he was in Christchurch. She handed two copies of her report on the workshop to the Chief Accountant’s secretary before taking the opportunity of her boss’s absence to seek the advice of her colleagues:
Fran: “I am really worried. What do you think I should do?”
Adrian: “Stop worrying about it. He’s just letting off steam. I have seen this all before. He’ll get over it.”
Fran: “Come on; get serious. He is my boss! He can make things very difficult for me.”
Mike: “I think you should talk with Rob. After all, he’s the one who suggested you go. It’s not like it was your idea. He has to stick up for you.”
The next day, Fran managed to get an appointment with the Chief Accountant. She started by saying that she found the workshop very useful. She then brought up her fears about Peter’s displeasure with her attendance at the workshop to which the Chief Accountant responded:
Rob: “Well yes, he was a bit upset but don’t worry, I will sort it out. The report was really good. By the way, I think you should treat it as confiden- tial. Don’t show it to anyone or discuss it with anyone. Is that ok? Don’t worry about this. I assure you that I will sort it out”
Fran left the meeting feeling reassured but also a bit puzzled, wondering how Rob could have read her report in such a short time. On Thursday, Peter returned to work and just before lunch called Fran into his office where he proceeded to attack her verbally, saying that she had “connived” behind his back to attend the workshop and that she had never asked for his
permission. He said that he realized she was an intelligent “girl” but that she was “sneaky.” He went on:
Peter: “You had better know which side your bread is buttered on—that for better or worse, you are in my section. No other section would want you.”
He then called Mike in and told him:
Peter: “I don’t want Fran wasting any more time—she is not to make any private calls from work.”
Later in “confidence,” he also told Janet, one of the adminis- tration clerks:
Peter: “Don’t go talking with Fran—she has far too much work to catch up on.”
Naturally, Janet did tell Fran!
The following week, Vernon happened to pass Fran in the corridor and stopped to talk with her. Fran had met Vernon only briefly during her first week in the company and was surprised when he asked her why she looked so miserable? After she explained, he advised that they had better talk with the Chief Accountant. Vernon then proceeded to take Fran directly to Rob’s office. Vernon said that they needed a word and Fran listened as Vernon outlined the situation to Rob. Fran made it clear that if Peter continued to treat her this way, she would have to ask for a transfer. She also said that there was certainly not enough work in MIS to keep her occupied for more than a day or so each week. The Chief Accountant listened and then asked her to give him a written report of what had happened since she had joined the company, including the latest incident with her boss. This, he said, would be brought up at the next senior management meeting. On the weekend, Fran wrote the re- port which included a request for a transfer out of MIS on the basis of the lack of work and her boss’s attitude toward her. On Monday morning, she handed her report to the Chief Accountant’s secretary. Fran expected a reply, but had heard nothing by early after- noon. At the end of the day however, Peter called all his staff into his office. He was obviously in a good mood and told them that he had presented his plan for revising “Big Brother” to the management meeting and had received an enthusiastic response. As he spoke, Fran noticed the color draining out of Mike’s face. On the way out, he told her that what Peter was describing was his revision plans, not his own. Mike resolved never to give his boss another one of his ideas telling Fran:
Mike: “He just uses other people’s brains—but that’s the last time he uses mine.”
Fran drove home from work feeling despondent. She wished she had never joined the company. Her job was boring, al- most entirely clerical and certainly did not require a degree. She was also taking the stresses home, resulting in quarrels with her boyfriend and flat mates.
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Fran concluded that she had only two alternatives: a trans- fer or resignation. But to leave her job after less than five months would hardly impress any future employer. In desper- ation, she went to talk with Vernon who she thought would be sympathetic but received more unwelcome news: He told her about the outcome of the senior management meeting. Contrary to Fran’s expectation, the Chief Accountant had not confronted Peter. In fact, it appeared he had been eclipsed by Peter’s presentation for the revision of “Big Brother” and the Chief Accountant had not attempted to raise the issue. Vernon was frank—she must either transfer or resign. Then, to Fran’s surprise, he suggested she apply for a position in his section that would become vacant in three weeks time. One of his assistant accountants was leaving to go overseas at short notice and he did not have a replacement. Vernon cau- tioned however that Fran’s only chance was to apply directly to the Chief Accountant; that would force the issue. With a formal, written application before him, the Chief Accountant would have to make a decision. Just as certainly, Peter would
resist the request. Later, Fran drafted a letter to Rob request- ing that she be transferred from MIS to the upcoming posi- tion in Cost Accounting.
THE CONFRONTATION
The next morning, Fran took her request to the Chief Accountant but after reading it he said:
Rob: “You really needn’t have done this, you know— I planned to deal with the situation.”
Fran left Rob’s office wondering what to believe. From her desk, she watched as Peter made his way across to the Chief Accountant’s office. The meeting was brief. Five minutes later, he left Rob’s office and as he passed by, he said, in a loud voice:
Peter: “Fran—you are finished in this company.”
Fran saw her colleagues duck their heads down and pretend to be working. No one envied her position. She wondered how, in such a short time, she had ended up in such a situation.
CASE 5: FROM LIPPERT-JOHANSON INCORPORATED TO FENWAY WASTE MANAGEMENT By Lisa V. Williams, Jeewon Cho, and Alicia Boisnier, SUNY at Buffalo
PART ONE
Catherine O’Neill was excited to finally graduate from Flagship University at the end of the semester. She had always been interested in accounting, following upon her father’s lifelong occupation, and she very much enjoyed the challeng- ing major. She was involved in many highly regarded student clubs in the business school and worked diligently to earn good grades. Now her commitment to the profession would pay off, she hoped, as she turned her attention to her job search. In late Fall, she had on-campus interviews with sev- eral firms, but her interview with the prestigious Lippert- Johanson Incorporated (LJI) stood out in her mind as the most attractive opportunity. That’s why Catherine was thrilled to learn she made it to the next level of interviews, to be held at the firm’s main office later that month. When Catherine entered the elegant lobby of LJI’s New York City offices, she was immediately impressed by all there was to take in. Catherine had always been one to pay atten- tion to detail, and her acute observations of her environment had always been an asset. She was able to see how social and environmental cues told her what was expected of her, and she always set out to meet and exceed those expectations. On a tour of the office, she had already begun to size up her prospective workplace. She appreciated the quiet, focused work atmosphere. She liked how everyone was dressed: most wore suits and their conservative apparel supported the professional attitudes that seemed to be omnipresent. People spoke to her in a formal, but friendly manner, and seemed
enthusiastic. Some of them even took the time to greet her as she was guided to the conference room for her individual interviews. “I like the way this place feels and I would love to come to work here every day,” Catherine thought. “I hope I do well in my interview!” Before she knew it, Catherine was sitting in a nicely appointed office with one of the eight managers in the firm. Sandra Jacobs was the picture of a professional woman, and Catherine naturally took her cue from her about how to conduct herself in the interview. It seemed to go very quickly, although the interview lasted an hour. As soon as Catherine left the office, she could not wait to phone her father about the interview. “I loved it there and I just know I’m a good fit!” she told her proud father. “Like them, I be- lieve it is important to have the highest ethical standards and quality of work. Ms. Jacobs really emphasized the mission of the firm, as well as its policies. She did say that all the candi- dates have an excellent skill set and are well qualified for the job, so mostly, they are going to base their hiring decision on how well they think each of us will fit into the firm. Reputa- tion is everything to an accounting firm. I learned that from you, Dad!” After six weeks of apprehensive waiting, Catherine’s ef- forts were rewarded when LJI and another firm contacted her with job offers. Catherine knew she would accept the offer from LJI. She saw the firm as very ethical, with highest stan- dards for work quality, and an excellent reputation. Catherine was grateful to have been selected from such a competitive
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hiring process. “There couldn’t be a better choice for me! I’m so proud to become a member of this company!” Catherine’s first few days at LJI were a whirlwind of a newcomer’s experiences. She had meetings with her supervi- sor to discuss the firm mission statement, her role in the firm, and what was expected of her. She was also told to spend some time looking at the employee handbook that covers many important policies of the firm, such as dress code, sick time, grievances, the chain of command and job descriptions, and professional ethics. Everyone relied on the handbook to provide clear guidance about what is expected of each employee. Also, Catherine was informed that she would soon begin participating in continuing professional education, which would allow her to update her skills and knowledge in her field. “This is great,” thought Catherine, “I’m so glad to know the firm doesn’t just talk about its high standards, it actually follows through with action.” What Catherine enjoyed most about her new job were her warm and welcoming colleagues who invited her to their group lunches beginning her first day. They talked about work and home; they seemed close, both professionally and personally. She could see that everyone had a similar attitude about work: They cared about their work and the firm, they took responsibility for their own tasks, but they also helped one another out. Catherine also got involved in LJI activities outside of work, like their baseball and soccer teams, happy hours, picnics and parties, and enjoyed the chance to mingle with her coworkers. In what seemed like no time at all, Catherine started to really see herself as a fully integrated member of LJI. Before tax season started, Catherine attended some meet- ings of the AICPA and other professional accounting societ- ies. There, she met many accountants from other firms who all seemed very impressed when she told them where she worked. Catherine’s pride and appreciation for being a mem- ber of LJI grew as she realized how highly regarded the firm was among others in the accounting industry.
PART TWO
Over the past seven years, Catherine’s career in New York had flourished. Her reputation as one of the top tax accountants in her company was well established, and was recognized by
colleagues outside the firm as well. However, Catherine en- tered a new chapter of her life when she married Ted Lewis, an oncology intern, who could not turn down an offer of residency at a top cancer center in upstate New York. Want- ing to support Ted’s once-in-a-lifetime career opportunity, Catherine decided it was time to follow the path of many of her colleagues and leave public accounting for a position that would be more conducive to starting a family. Still, her heart was in the profession, so she took an available position as a controller of a small recycling company located a few miles from Catherine and Ted’s new Upstate home. She knew that with this position she could both have children and maintain her career. Fenway Waste Management is small—about 35 employ- ees. There are about 25 people who work in the warehouse, three administrative assistants, two supervisors, and five peo- ple in management. Catherine is finding she has to adjust to her new position and surroundings. Often she found herself doing work that formally belonged to someone else; because it is a smaller company managers seem to “wear many hats.” This was quite different from what she had experienced at LJI. In addition, the warehousemen often have to work with greasy materials, and sometimes track the grease into the of- fices. Catherine half-laughed and half-worried when she saw a piece of paper pinned to the wall that said, “Clean Up After Yourself!” She supposed that the nature of the business was why the offices are functional, but furnished with old pieces. She couldn’t imagine having a business meeting there! Also, for most of the employees, the casual dress matches the causal attitudes. But, Catherine continues to wear a dressed-down version of her formal LJI attire, even though her new coworkers consider her overdressed. With all the changes Catherine has experienced, she has maintained one familiar piece of her past. Although it is not required for her new position, Catherine still attends AICPA meetings and makes a point to continue updating her knowl- edge of current tax laws. At this year’s conference, she told a former colleague, “Being here, I feel so much more like myself—I am so much more connected to these people and this environment than to those at my new job. It’s too bad I don’t feel this way at Fenway. I guess I’m just more comfort- able with professionals who are similar to me.”
CASE 6: FROM REO TO NUCLEAR TO NUCOR By Steven L. McShane, University of Western Australia
In 1904, Ransom E. Olds founded REO Motor Car Company in Lansing, Michigan. He also launched several subsidiaries—Atlas Drop Forge Company, National Coil Company, and Michigan Screw Company, among others— to ensure a reliable supply of parts for REO’s main business. Olds left Olds Motor Vehicle Company, a business he had founded eight years earlier, after fighting a losing battle
against company president Samuel Smith and Smith’s son over their decision to build luxury cars. Olds believed the company’s success lay in low-cost vehicles, but Smith held most shares in the company, so his decision to build luxury cars was implemented. In 1908, cash-strapped Olds Motors was sold to General Motors, which produced Oldsmobiles until 2004.
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Less than one year after Ransom Olds left Olds Motors, his new company (REO) launched a 7.5-horsepower one- cylinder runabout, similar to the wildly popular “Curved Dash” car Olds had designed at his previous company. REO’s other initial offering was a 16hp two-cylinder touring car. The quality of the REO touring car was famously demon- strated through long test drives and endurance competitions, such as the Mt. Washington Climb to the Clouds competi- tion in Vermont in 1905 and a historic 6,700 km trip across Canada in 1912. With soaring sales during the first few years, REO became the third-ranked automobile manufacturer by sales in the United States by 1907. Olds continued to develop his touring car and, by 1912, declared that it was “perfected.” He stepped down as general manager in 1915 and retired from the company in 1923 to pursue an ill-fated real estate project in Florida. REO Motors boasted efficient production methods. Ransom Olds introduced the world’s first automobile produc- tion assembly line at Olds Motor Vehicle Company in 1901. These practices were incorporated into REO’s production facilities in 1905, allowing the company to initially sell cars at a low price. Olds was also recognized as a leader in quality control practices. However, even with ongoing innovations to its cars, REO quickly lost market share to Ford Motor Company and others. In particular, Henry Ford mechanized the assembly line process (conveyor belts moved the product along the assembly line) and made much higher production demands on workers. As a result, Ford was able to price his Model-T far below REO’s entry-level offering. By the 1920s, REO was a small, yet profitable, player in the automobile industry. During its peak in the late 1920s, REO employed about 5,500 workers who annually produced almost 50,000 trucks and cars. (By comparison, in 1920 Ford Motor Company produced one million Model-T cars alone.) Over time, REO became more dependent on sales of its trucks than its cars. REO’s first truck, the REO Delivery Wagon, was in- troduced around 1910 with the advertising claim that it would allow one person to do “the work of three horses and three men” for about the same cost “as one horse and wagon and man.” Five years later, the company launched the REO Speed Wagon, so-named for its reported top speed of 40 miles per hour. REO began manufacturing buses in the 1930s.
REO’S CULTURE AND WORK PRACTICES
REO also had a distinctive “family feel” culture and was an early practitioner of welfare capitalism. Welfare capitalism in- volved building employee loyalty (and staving off unioniza- tion) through the development of human relations and personnel practices. REO tried to provide (and at times promised) job security, respect for seniority, and opportuni- ties for career development. REO built an employee club- house (known as the “Temple of Leisure”) where workers and their families could watch movies, attend dances, and listen to concerts by REO’s in-house band. The company’s em- ployee handbook in 1915 stated that the Welfare (Personnel)
Department would investigate and seek a “square deal” for those with a legitimate grievance. During the Great Depres- sion, REO management reduced work hours and increased job sharing to minimize layoffs. (Still, REO’s employment fell precipitously during these times.) REO was also reported to assist workers who could not pay their bills. From its founding to the 1930s, REO emphasized values and expectations regarding how employees should be treated by management, and how employees should behave at work and as community citizens. The company encouraged com- pany sports teams, partly in the belief that these activities de- veloped team skills, built allegiance to the company, and identified those who lived up to REO’s values of competi- tion, cooperation within the team, and fair play. REO didn’t pay the highest wages, but its welfare capitalism had the de- sired effect. The company enjoyed one of the lowest rates of employee turnover in the industry. When unionization gripped the industry in the 1930s, REO’s transition was gen- erally smoother than elsewhere. In addition, the older em- ployees felt tremendous pride in REO’s products and the firm’s contribution to the community. REO was a profitable company throughout the 1920s. Unfortunately, REO’s management invested these profits in an expanded line of cars, particularly in the higher price range. These investments were made just prior to the Great Depression, when car sales in general—and luxury vehicles in particular—plummeted. In 1933, REO’s president was re- moved and Ransom Olds was brought back as company chairman for one year. He launched several projects, includ- ing a light version of the Mack truck, a concept delivery van, and a new line of buses. None of these initiatives were profit- able. In 1936, REO suspended car production and, in 1938, filed for bankruptcy protection. The company reorganized as a truck and bus manufacturer. REO survived over the next 15 years mainly through military contracts for its trucks and buses. It also expanded into the manufacture of lawn mowers and children’s swing sets.
REO GOES NUCLEAR
When the Korean War ended in 1953, REO’s military con- tracts diminished, leaving the company in a difficult financial situation. REO’s board sold off its vehicle manufacturing op- erations and, with only $16 million in cash and no operating business, decided to liquidate the company. A dissident group of shareholders had different plans, however. The shareholder group forced REO’s board to acquire Nuclear Consultants, Inc., a tiny nuclear services company. In 1955, REO Motor Company changed its name to Nuclear Corpo- ration of America Inc., becoming the first publicly traded nuclear company. Nuclear’s stock soared based on the popularity of the word nuclear as well as various “publicity stunts” to leverage the company’s name. The company’s actual business activities in nuclear instrumentation (geiger counters), nuclear energy, chemicals, and electronics were much less spectacular,
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however. (One source reports that they “bordered on the illu- sory.”) Able to sell stock relatively easily, Nuclear went on a buying spree to become a conglomerate of several indepen- dent businesses. By the early 1960s, Nuclear was involved in nuclear services, prefabricated housing, graphic arts, leasing, contracting, and steel joist businesses. Unfortunately, most of these ventures were unprofitable. In 1965, Nuclear’s board filed for bankruptcy protection, ousted its president, and promoted Ken Iverson as the new president and CEO. Iverson had been hired in 1962 as general manager of Vulcraft Corporation, a joist manufacturer in South Carolina that Nuclear had acquired at that time. Vulcraft was Nuclear’s only profitable division, and Iverson had been promoted to group vice-president prior to taking the top job. Iverson quickly sold off or closed four of Nuclear’s eight divisions, slashed the number of management positions from 12 to just 2 people, and decided to focus the company’s growth through Vulcraft. Vulcraft enjoyed 20 percent market share of the joist business, but it was entirely dependent on the price of steel, which was considered too expensive and sourced from unreliable sources (80 percent came from for- eign steel plants). So Iverson, who was trained as a metallur- gical engineer, made the historic and risky decision in 1968 to produce bar steel for Nuclear’s joist business. The com- pany borrowed heavily to build a steel mini-mill using elec- tric arc furnaces that melted scrap steel. Nuclear’s mini-mill experienced delays and “catastrophes” during its first couple of years, but eventually produced steel bars far below prevail- ing costs of traditional coke-and-iron steel mills. In response to Nuclear’s new steel plant, American steel companies can- celed their contracts with the company.
NUCOR’S NEW ERA
With no nuclear business activity, the company changed its name for a third time in 1972 from Nuclear Corporation of America to Nucor Corporation. In 1977, Nucor expanded its business to steel decking. It also built more mini-mills, be- coming the 20th largest steel producer by 1980. Other com- panies also built electric arc steel mini-mills, which threatened Bethlehem, Republic, and other traditional steel mills. Many of these traditional plants went bankrupt by the 1990s. In 1986, Nucor took its biggest gamble by building the first thin slab sheet steel mini-mill at a cost of one-third the com- pany’s total annual revenues. The experimental plant in Crawfordsville, Indiana, experienced setbacks and one tragic fatality. But within four years the plant was operating near capacity, producing flat-rolled steel in one quarter of the time of its competitors and at a significantly lower cost. Nucor’s expansion in steel-making continued unabated through acquisitions and construction of new plants. Today, with $20 billion in sales and more than 200 operating facili- ties (most in North America), Nucor is the largest steel maker and the largest recycler of any material in the United States. (Nucor recycles the equivalent of one SUV vehicle every five seconds.) Except for 2009, it has been profitable every year
since the late 1960s and, unusual for the steel industry, has never laid off any employees.
NUCOR’S CULTURE AND WORK PRACTICES
Nucor’s success under Iverson’s leadership was due in part to investment in risky technological innovations, such as build- ing one of America’s first electric arc steel mills and develop- ing the first flat-rolled sheet steel mini-mill. However, much credit also goes to Nucor’s productive and innovative culture and work practices that Iverson nurtured and which remain to this day. Beginning with the 1965 reorganization, Nucor has maintained an extremely lean head office, decentralizing most decisions to the local mills. Only 100 people out of a workforce of 22,000 are employed at headquarters. Nucor also has an egalitarian culture with one of the flattest organizational hierarchies for a company of its size. Initially, Iverson demanded that Nucor would have only four layers of management: CEO, vice-president/plant manager, department manager, and supervisor. A fifth layer (five exec- utive vice-presidents) was reluctantly added a few years ago to reduce the CEO’s span of control, thereby freeing up time to address government and industry policy issues. Nucor’s egal- itarian culture is also apparent by the lack of special executive perks (no company cars, executive dining room, etc.) and lower executive pay than in many other companies. When Nucor bought a corporate jet a few years ago, the CEO wrote to employees explaining how the purchase was cost-effective compared with previous charter jet rentals. A third feature of Nucor’s culture is its strong emphasis on performance-based rewards around team and organizational performance. Nucor mill workers, all of whom are nonunion, earn only about $10 an hour in base pay, but their total com- pensation is the highest in the industry (about $80,000 an- nually in good years) due to generous performance-based bonuses around team and organizational outcomes. Teams of 12 to 20 employees earn a generous bonus for each batch of steel produced. If employees produce a bad batch of steel be- fore it leaves the mini-mill, they lose their bonus for that shipment. But if a bad batch makes its way to the customer, the team loses three times its usual bonus. Employees also earn a profit-sharing bonus, which is about $15,000 annually in recent years. The performance system not only encourages innovation and quality control in the mill plants; it also encourages a strong team-orientation in the work process. For instance, two days after one manager became head of a Nucor Vulcraft plant, every other general manager in the Vulcraft division called with offers to help him in his new job. Their offer wasn’t idle politeness because, as the new manager pointed out, “My performance impacted their paycheck.” Empowerment is a fourth cultural feature of Nucor. Employees have considerable freedom and job flexibility to experiment with innovations and to adjust their work to fit demands. This empowered culture is apparent in many ways. For instance, when the electrical grid failed at one Nucor
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mini-mill, three Nucor employees immediately drove or flew there without any requests from management and had the mini-mill back in business within three days. And when tor- nados recently knocked out power for almost one month at Nucor’s plant in Decatur, Alabama, staff at other plants re- sponded by shifting Decatur’s work to other Nucor sheet mills so the orders could be completed on time. Nucor Chairman Daniel DiMicco summarizes the company’s em- powerment culture: “If you see something that needs to be fixed, you fix it. You don’t need to get approval from three supervisors because your supervisors know you have integrity, and they trust that you’ll do the right thing. That’s a huge competitive advantage for us.” Although Nucor has excelled in its work practices, until a few years ago, it was far from a role model in environmental- ism. A dozen years ago, Nucor paid the largest environmental settlement by a steel company in the United States for al- legedly failing to control the emission of toxic chemicals in several U.S. states. It was also identified as the 14th highest contributor to air pollution in the United States. Nucor responded to these concerns by hiring environmental staff
and introducing new technologies, with the result that its emissions and energy use have fallen dramatically. For exam- ple, the company’s new ultra-thin cast strip process consumes 85 percent less energy than a conventional mill with a 75 per- cent reduction in greenhouse gas emissions.
Sources: “22 Years under One Management,” Barron’s , 9 May 1927, pg. 19; M. Donsky, “Man of Steel Talks Nuts and Bolts” Business North Carolina , Vol. 9 (May 1989), p. 38; L. M. Fine, “Our Big Factory Family: Masculinity and Paternalism at the REO Motor Car Company of Lansing, Michigan,” Labor History 34(2) (1993): 274–291; N. Padgett, “1905-1910 REO,” AutoWeek, 6 October 1997, p. 35; M. Mueller, The American Pickup Truck (St. Paul, MN: MBI Publishing, 1999); A. K. Gupta and V. Govindarajan, “Knowledge Management’s Social Dimension: Lessons from Nucor Steel,” Sloan Management Review 42(1) (2000), pp. 71–80; “How Nucor Upgrades Governance while Preserving a Unique Corporate Culture,” Directorship , Vol. 28 (3) March 2002, pp. 1–2; C. R. James, “Designing Learning Organizations,” Organization Dynamics , Vol. 32 (1) (2002), pp. 46–61; N. Byrnes and M. Arndt, “The Art of Motivation,” Business- Week , 30 April 2006, 56; M. Bolch, “Rewarding the Team,” HRMagazine , February 2007, 91–93; Nucor 2011 Sustainability Report (Charlotte, NC: 2012); Nucor 2012 Annual Report (Charlotte, NC: March 2013); J. Stein, “Legends and Heroes; Ransom E. Olds,” Edmonton Journal, 30 July 2013, pg. D10; “Our Story,” www.nucor.com (retrieved 22 August 2013).
CASE 7: GOING TO THE X-STREAM Roy Smollan, Auckland University of Technology, New Zealand
Gil Reihana was the chief executive officer of X-Stream, a com- pany he launched in Auckland, New Zealand, six years ago at the age of 25, after graduating with a bachelor’s degree in infor- mation technology and management. He had inherited $300,000 and had persuaded various family members to invest additional money. X-Stream assembled personal computers for the New Zealand and Australian markets and sold them through a number of chain stores and independent retailers. The company had soon established a reputation for quality hardware, customized products, excellent delivery times and after-sales service. Six months ago it had started a software di- vision, specializing in webpage design and consulting on vari- ous applications for the development of electronic business. Gil was driven by a desire to succeed. He had started work- ing part-time at an electronics retailer at age 16 and in his spare time took apart old computers in his garage to see how they were made. He was extroverted, energetic, and enthusias- tic, often arriving at work by 5 a.m. and seldom leaving before 7 p.m. He felt that work should be challenging but fun too. He had initially picked a young senior management team that he thought shared his outlook. A casual, almost irreverent at- mosphere developed. However, a poorly organized accounting department led to the replacement of the first accountant af- ter two years. Gil believed that major decisions should be made by consensus and that individuals should then be em- powered to implement these decisions in their own way. In the beginning he had met with each staff member in January
to discuss with them how happy they were in their jobs, what their ambitions were, and what plans they would like to make for the coming year in terms of their own professional devel- opment. These one-on-one meetings became more difficult as the company grew, so senior management team members were eventually delegated the task of conducting reviews with their own staff. However, Gil was unsure whether every man- ager was actually performing the reviews or how well they were working. Now he tried to keep in touch with staff by having lunch with them in the cafeteria occasionally. Denise Commins (affectionately known to all staff as Dot Com) was the chief financial officer. She and Gil could not be more different. Denise was quiet, methodical, and very patient. Her superb interpersonal skills complemented a highly analytical mind. At 55, she was considerably older than most of the employees and often showed a strong maternal side. Many of her team (and several from other departments as well) frequently consulted her on work issues and personal problems too. She enjoyed the informal relationships she had built up but found that the technical aspects of her role were becoming less rewarding. Don Head, the marketing manager, was considered to be a rather ruthless operator, often undercutting the competi- tion in terms of price, and, on more than one occasion, by circulating false rumors of defects in their products. He deemed himself “a ladies’ man” and was known to flirt with a number of the staff. A case of sexual harassment had been
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dropped after a 22-year-old secretary had been paid a sizeable sum of money. Gil and the members of the senior manage- ment team had been furious but Don had denied any wrong- doing, claiming that she had “led him on.” Don had been at university with Gil and they spent many hours after work at a pub around the corner from the factory. With sales rising year after year, his marketing expertise and cunning were re- garded as essential to the company’s continuing growth. He had a department of eight whom he had carefully screened as ambitious self-starters. They were required to set and achieve their own targets, as long as they were “big hairy ambitious goals,” a phrase he had heard at a seminar. Jason Palu, the production manager, was a soft spoken man who had started as a supervisor and who had quickly worked his way to the top position. He set extremely high standards for the production staff and was considered to be a perfectionist. He was highly regarded by his colleagues for his efficiency and reliability. There were very few occasions when an order could not be fulfilled on time and his goal was zero defects. He tended to be autocratic and some people com- plained that he never listened to them, allocated work hours that did not suit people, and often required staff to work (paid) overtime on very short notice. When one production worker complained, he tersely remarked that “we have a job to do and we just have to get on with it. The company depends on us.” Heather Berkowitz was the chief webpage designer. She had blue hair, a ring through her nose, and she dressed in exotic clothes that had been sourced from a number of second-hand stores. She seldom arrived at work much before 11 a.m. and often left before 4 p.m. She said she did her best work at home, often at night, so why should she “punch the clock like the drones on the assembly line”? Gil and others had often received e-mails from her that had been sent at all hours of the night. She had established a reputation as a top webpage designer, and although her physical appearance did not go down too well with some of the company’s clients (or staff ) the quality and quantity of her work was extremely high. On Tuesdays at 9 a.m. the senior staff met to discuss weekly plans and any significant issues that had arisen. All employees were invited to the meeting, and some accepted this opportunity to attend. Gil trusted all staff to keep confi- dential matters within the company. He believed that if the organization shared information with employees they would be more likely to support management decisions. The meet- ings lacked formality and usually started with some jokes, usually at the expense of some members of staff. By and large the jokes were meant to be inoffensive, but were not always taken that way. Nicknames were often assigned to staff, mostly by Don Head, some quite derogatory. You were thought to be a “wet blanket” if you objected. Don seemed oblivious to the unflattering nickname he had been given, preferring to call himself Braveheart, sometimes even signing memos in this fashion. Although employment agreements referred to a 40-hour week there was an expectation that staff would put in
substantially more than that. Only the assembly line workers had to clock in and out, but this, Jason had explained, was due to the overtime that assembly staff were required to work to meet deadlines. The overtime pay was welcomed by some production staff and resented by some employees in other departments who believed they should be entitled to the same benefits. Recently a conflict had arisen between Jason and Don. The company had been developing for some time a top-of-the- range laptop which was scheduled for launching in two weeks’ time. Jason had been urging senior management to delay the introduction of the new X-MH until some glitches had been sorted out. A batch of chips acquired from abroad had con- tained some defective features. Jason wanted to postpone the new model until these problems had been completely sorted out, a process which he believed would take another month. Don found this to be unacceptable. A former New Zealand rugby team (All Blacks) captain had been contracted to attend the launch and market the new model on a roadshow that would travel to New Zealand and Australia’s main cities. He would not be available at the time Jason was prepared to re- lease the X-MH. At a heated staff meeting, some of the senior staff backed Don, while others agreed with Jason. Don had urged all of his department to attend the meeting, to present a united front and convey an image of power. Heather Berkowitz had arrived halfway through the meeting and with a mouthful of muffin proclaimed that there was no rush to get out the “new toy.” The company had plenty of other issues to which it could devote its energy. She said she had met the head of information technology of a chain of fast-food restaurants that wanted to revitalize its website. She maintained she needed three extra staff to get this up and running. She left the meeting five minutes later. Don was fuming at the interruption and demanded that Gil should stick to the original launch date of the X-MH. Gil calmly replied that he understood Don’s frustration but that more consultation was necessary. He said that it would be discussed by the parties concerned during the week and a fi- nal decision would be made at the following Tuesday’s staff meeting. Don spent the rest of the day lobbying other members of the senior staff. He offered Dorothy the use of his beach cot- tage if she backed him and promised to support her on the acquisition of expensive new accounting software. She just laughed and said that she was convinced the senior manage- ment team would approve the new software. She also in- formed Don that a member of her staff had seen one of his sales representatives entering a strip joint the previous week at a time when the sales force had been engaged in a staff meeting. Other problems had arisen in recent months. Ramesh Patel, the newly recruited head of e-business applications had, with help from a personal contact, developed a software program that would help hotels and restaurants source products and services over the Internet. It was beginning to generate
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useful revenue. His contact had now billed X-Stream for $25,000 in consultancy fees and development costs. Ramesh claimed that his contact had owed him a favor and that no mention of money had ever been made. X-Stream had re- ferred the matter to its legal counsel. Les Kong, the research and development manager (hard- ware) had complained to Gil that he could no longer work under Jason Palu. While he considered him a very pleasant man, and a very capable production manager, he could no longer tolerate his strict control style. “You can’t do creative work on command!” was his lament. He loved his job and had spent hours over several weekends developing and refin- ing a new product. There was considerable resentment from Jason and Don about the resources that had been invested in the software division, partly because they did not see the need for the company to diversify and partly because they claimed that money was being diverted from their departments to fund the new ventures. Ramesh claimed that “a good e-business starts at home—we should open up all our procurement via the Internet.” His suggestion did not go down well with Jason and Don. Gil had been pondering the structure of X-Stream for some time. The old functional structure no longer seemed appropriate. “Silo” mentality and departmental interests seemed to predominate and turf wars took place. The company had grown to 64 staff in New Zealand and 8 in
Australia. The ongoing development of new hardware and the introduction of the software side of the business had made management tasks somewhat complicated. He missed the old days when he knew every member of staff. The infor- mal decision-making that was characteristic of the business might have to give way to more formal processes. Yet he did not want to lose the creativity that underpinned its success. Despite the open invitation to attend the management meet- ings, many staff complained that they never knew what was going on. He expected all senior managers to keep their de- partmental staff informed of developments. Some had done this admirably, while others had virtually ignored his wishes. A human resources manager, Alkina Bennelong, had been appointed a month previously and reported to Denise Com- mins. She had been reviewing the company’s loosely worded job descriptions and person specifications and the recruit- ment and selection systems and had suggested more profes- sional but more elaborate approaches. She had also suggested the introduction of a performance management system, in- cluding feedback from peers, direct reports and outsiders, such as suppliers and customers. “Over my dead body!” was the retort of Don Head. “How can you allow subordinates to tell you how to do your job?” queried Jason Palu. “Can’t see what the fuss is all about,” said Heather Berkowitz. “Every- body keeps telling me what to do anyway, even though they don’t understand the first thing about my job! But it doesn’t worry me.”
CASE 8: THE REGENCY GRAND HOTEL By Elizabeth Ho, Gucci Group, under the supervision of Steven L. McShane, The University of Western Australia
The Regency Grand Hotel is a five-star hotel in Bangkok, Thailand. The hotel was established 15 years ago by a local consortium of investors and has been operated by a Thai gen- eral manager throughout this time. The hotel is one of Bang- kok’s most prestigious hotels and its 700 employees enjoyed the prestige associated with the hotel. The hotel provides good welfare benefits, above market rate salary, and job secu- rity. In addition, a good year-end bonus amounting to 4 months’ salary was rewarded to employees regardless of the hotel’s overall performance during the year. Recently, the Regency was sold to a large American hotel chain that was very keen to expand its operations into Thailand. When the acquisition was announced, the General Manager decided to take early retirement when the hotel changed ownership. The American hotel chain kept all of the Regency employees, although a few were transferred to other positions. John Becker, an American with 10 years of man- agement experience with the hotel chain, was appointed as the new General Manager of Regency Palace Hotel. Becker was selected as the new General Manager because of his pre- vious successes in integrating newly acquired hotels in the
United States. In most of the previous acquisitions, Becker took over operations with poor profitability and low morale. Becker is a strong believer in empowerment. He expects employees to go beyond guidelines/standards to consider guest needs on a case-to-case basis. That is, employees must be guest-oriented at all times so as to provide excellent cus- tomer service. From his U.S. experience, Becker has found that empowerment increases employee motivation, perfor- mance, and job satisfaction, all of which contribute to the hotel’s profitability and customer service ratings. Soon after becoming General Manager in Regency Palace, Becker intro- duced the practice of empowerment so as to replicate the suc- cesses he had achieved back home. The Regency Grand hotel has been very profitable since it opened 15 years ago. The employees have always worked ac- cording to management’s instructions. Their responsibility was to ensure that the instructions from their managers were carried out diligently and conscientiously. Innovation and creativity were discouraged under the previous management. Indeed, employees were punished for their mistakes and dis- couraged from trying out ideas that had not been approved
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by management. As a result, employees were afraid to be in- novative and to take risks. Becker met with Regent’s managers and department heads to explain that empowerment would be introduced in the ho- tel. He told them that employees must be empowered with decision-making authority so that they can use their initiative, creativity, and judgment to satisfy guest needs or handle prob- lems effectively and efficiently. However, he stressed that the more complex issues and decisions were to be referred to supe- riors, who were to coach and assist rather than provide direct orders. Furthermore, Becker stressed that mistakes were allowed but there was no justification for making the same mistake more than twice. He advised his managers and de- partment heads not to discuss with him minor issues/prob- lems and not to consult minor decisions with him. Neverthe- less, he told them that they are to discuss important/major issues and decisions with him. He concluded the meeting by asking for feedback. Several managers and department heads told him that they liked the idea and would support it, while others simply nodded their heads. Becker was pleased with the response, and was eager to have his plan implemented. In the past, the Regency had emphasized administrative control, resulting in many bureaucratic procedures through- out the organization. For example, the front counter employ- ees needed to seek approval from their manager before they could upgrade guests to another category of room. The front counter manager would then have to write and submit a re- port to the General Manager justifying the upgrade. Soon after his meeting with managers, Becker reduced the number of bureaucratic rules at the Regency and allocated more decision-making authority to front-line employees. This action upset those who previously had decision-making power over these issues. As a result, several of these employees left the hotel. Becker also began spending a large portion of his time ob- serving and interacting with the employees at the front desk, lobby, restaurants, and various departments. This direct in- teraction with Becker helped many employees to understand what he wanted and expected of them. However, the employ- ees had much difficulty trying to distinguish between a major and minor issue/decision. More often than not, supervisors
would reverse employee decisions by stating that they were major issues requiring management approval. Employees who displayed initiative and made good decisions in satis- fying the needs of the guests rarely received any positive feedback from their supervisors. Eventually, most of these employees lost confidence in making decisions, and reverted to relying on their superiors for decision making. Not long after the implementation of the practice of em- powerment, Becker realized that his subordinates were con- sulting him more frequently than before. Most of them came to him with minor issues and consulted with him on minor decisions. He had to spend most of his time attending to his subordinates. Soon Becker began to feel highly frustrated and exhausted, and very often would tell his secretary that “unless the hotel is on fire, don’t let anyone disturb me.” Becker thought that the practice of empowerment would benefit the overall performance of the hotel. However, con- trary to his expectation, the business and overall performance of the hotel began to deteriorate. There had been an increasing number of guest complaints. In the past, the hotel had mini- mal guest complaints. Now were turned in a significant num- ber of formal written complaints every month. Many other guests voiced their dissatisfaction verbally to hotel employees. The number of mistakes made by employees had been on the increase. Becker was very upset when he realized that two of the local newspapers and an overseas newspaper had published negative feedback on the hotel in terms of service standards. He was most distressed when an international travel magazine had voted the hotel as “one of Asia’s nightmare hotels.” The stress levels of the employees were continuously mounting since the introduction of the practice of empower- ment. Absenteeism due to illness was increasing at an alarm- ing rate. In addition, the employee turnover rate had reached an all-time high. The good working relationships that were established under the old management had been severely strained. The employees were no longer united and support- ive of each other. They were quick to point fingers or back- stab one another when mistakes were made and when problems occurred. Note: This case is based on true events, but the industry and names have been changed.
CASE 9: SIMMONS LABORATORIES Adapted by William Starbuck from a case written by Alex Bavelas
Brandon Newbridge was sitting alone in the conference room of the laboratory. The rest of the group had gone. One of the secretaries had stopped and talked for a while about her hus- band’s coming enrollment in graduate school and had finally left. Brandon, alone in the laboratory, slid a little farther down in his chair, looking with satisfaction at the results of the first test run of the new photon unit.
He liked to stay after the others had gone. His appoint- ment as project head was still new enough to give him a deep sense of pleasure. His eyes were on the graphs before him, but in his mind he could hear Dr. William Goh, the project head, saying again, “There’s one thing about this place you can bank on. The sky is the limit for anyone who can produce!” Newbridge felt again the tingle of happiness and
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embarrassment. Well, dammit, he said to himself, he had produced. He wasn’t kidding anybody. He had come to the Simmons Laboratories two years ago. During a routine test- ing of some rejected Clanson components, he had stumbled on the idea of the photon correlator, and the rest just hap- pened. Goh had been enthusiastic: A separate project had been set up for further research and development of the device, and he had gotten the job of running it. The whole sequence of events still seemed a little miraculous to Newbridge. He shrugged out of the reverie and bent determinedly over the sheets when he heard someone come into the room behind him. He looked up expectantly; Goh often stayed late himself and now and then dropped in for a chat. This always made the day’s end especially pleasant for Brandon. The man who had entered wasn’t Goh. He was a tall, thin stranger who wore steel-rimmed glasses and had a very wide leather belt with a large brass buckle. Lucy re- marked later that it was the kind of belt the Pilgrims must have worn. The stranger smiled and introduced himself. “I’m Lester Zapf. Are you Brandon Newbridge?” Brandon said yes, and they shook hands. “Doctor Goh said I might find you in. We were talking about your work, and I’m very much interested in what you are doing.” Brandon gestured for him to sit. Zapf didn’t seem to belong in any of the standard cate- gories of visitors: customer, visiting fireman, stockholder. Brandon pointed to the sheets on the table. “There are the preliminary results of a test we’re running. We have a new gadget by the tail and we’re trying to understand it. It’s not finished, but I can show you the section we’re testing.” He stood up, but Zapf was deep in the graphs. After a moment, he looked up with an odd grin. “These look like plots of a Jennings surface. I’ve been playing around with some autocorrelation functions of surfaces—you know that stuff.” Brandon, who had no idea what he was referring to, grinned and nodded, and immediately felt uncomfortable. “Let me show you the monster,” he said, and led the way to the workroom. After Zapf left, Newbridge slowly put the graphs away, feeling vaguely annoyed. Then, as if he had made a decision, he quickly locked up and took the long way out so that he would pass Goh’s office. But the office was locked. New- bridge wondered whether Goh and Zapf had left together. The next morning, Newbridge dropped into Goh’s office, mentioned that he had talked with Zapf, and asked who he was. “Sit down for a minute,” Goh said. “I want to talk to you about him. What do you think of him?” Newbridge replied truthfully that he thought Zapf was very bright and probably very competent. Goh looked pleased. “We’re taking him on,” he said. “He’s had a very good background in a number of laboratories, and he seems to have ideas about the problems we’re tackling here.” Newbridge
nodded in agreement, instantly wishing that Zapf would not be placed with him. “I don’t know yet where he will finally land,” Goh con- tinued, “but he seems interested in what you are doing. I thought he might spend a little time with you by way of getting started.” Newbridge nodded thoughtfully. “If his interest in your work continues, you can add him to your group.” “Well, he seemed to have some good ideas even without knowing exactly what we are doing,” Newbridge answered. “I hope he stays; we’d be glad to have him.” Newbridge walked back to the lab with mixed feelings. He told himself that Zapf would be good for the group. He was no dunce; he’d produce. Newbridge thought again of Goh’s promise when he had promoted him—“the man who produces gets ahead in this outfit.” The words seemed to carry the overtones of a threat now. That day, Zapf didn’t appear until mid afternoon. He ex- plained that he had had a long lunch with Goh, discussing his place in the lab. “Yes,” said Newbridge, “I talked with Jerry this morning about it, and we both thought you might work with us for a while.” Zapf smiled in the same knowing way that he had smiled when he mentioned the Jennings surfaces. “I’d like to,” he said. Newbridge introduced Zapf to the other members of the lab. Zapf and Link, the group’s mathematician, hit it off well and spent the rest of the afternoon discussing a method for analyzing patterns that Link had been worrying over the last month. It was 6:30 when Newbridge finally left the lab that night. He had waited almost eagerly for the end of the day to come—when they would all be gone and he could sit in the quiet rooms, relax, and think it over. “Think what over?” he asked himself. He didn’t know. Shortly after 5 p.m., they had almost all gone except Zapf, and what followed was almost a duel. Newbridge was annoyed that he was being cheated out of his quiet period and finally resentfully determined that Zapf should leave first. Zapf was sitting at the conference table reading, and New- bridge was sitting at his desk in the little glass-enclosed cubby he used during the day when he needed to be undisturbed. Zapf had gotten the last year’s progress reports out and was studying them carefully. The time dragged. Newbridge doodled on a pad, the tension growing inside him. What the hell did Zapf think he was going to find in the reports? Newbridge finally gave up and they left the lab together. Zapf took several of the reports with him to study in the eve- ning. Newbridge asked him if he thought the reports gave a clear picture of the lab’s activities. “They’re excellent,” Zapf answered with obvious sincerity. “They’re not only good reports; what they report is damn good, too!” Newbridge was surprised at the relief he felt and grew almost jovial as he said goodnight.
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Driving home, Newbridge felt more optimistic about Zapf ’s presence in the lab. He had never fully understood the analysis that Link was attempting. If there was anything wrong with Link’s approach, Zapf would probably spot it. “And if I’m any judge,” he murmured, “he won’t be especially diplomatic about it.” He described Zapf to his wife, who was amused by the broad leather belt and brass buckle. “It’s the kind of belt that Pilgrims must have worn,” she laughed. “I’m not worried about how he holds his pants up,” he laughed with her. “I’m afraid that he’s the kind that just has to make like a genius twice each day. And that can be pretty rough on the group.”
Newbridge had been asleep for several hours when he was jerked awake by the telephone. He realized it had rung sev- eral times. He swung off the bed muttering about damn fools and telephones. It was Zapf. Without any excuses, apparently oblivious of the time, he plunged into an excited recital of how Link’s patterning problem could be solved. Newbridge covered the mouthpiece to answer his wife’s stage-whispered “Who is it?” “It’s the genius,” replied Newbridge. Zapf, completely ignoring the fact that it was 2:00 in the morning, went on in a very excited way to start in the middle of an explanation about a completely new approach to certain photon lab problems, an approach he had stumbled on while analyzing past experiments. Newbridge managed to put some enthusiasm in his own voice and stood there, half-dazed and very uncomfortable, listening to Zapf talk endlessly about what he had discovered. It was probably not only a new ap- proach but also an analysis that showed the inherent weakness of the previous experiment and how experimentation along that line would certainly have been inconclusive. The follow- ing day, Newbridge spent the entire morning with Zapf and Link, the mathematician, the customary morning meeting of Brandon’s group having been called off so that Zapf ’s work of the previous night could be gone over intensively. Zapf was very anxious that this be done, and Newbridge was not too unhappy to call the meeting off for reasons of his own. For the next several days Zapf sat in the back office that had been turned over to him and did nothing but read the progress reports of the work that had been done in the last six months. Newbridge caught himself feeling apprehensive about the reac- tion that Zapf might have to some of his work. He was a little surprised at his own feelings. He had always been proud— although he had put on a convincingly modest face—of the way in which new ground in the study of photon measuring devices had been broken in his group. Now he wasn’t sure, and it seemed to him that Zapf might easily show that the line of research they had been following was unsound or even unimaginative. The next morning (as was the custom) the members of the lab, including the secretaries, sat around a conference
table. Brandon always prided himself on the fact that the work of the lab was guided and evaluated by the group as a whole, and he was fond of repeating that it was not a waste of time to include secretaries in such meetings. Often, what started out as a boring recital of fundamental assumptions to a naive listener, uncovered new ways of regarding these assumptions that would not have occurred to the researcher who had long ago accepted them as a necessary basis for his work. These group meetings also served Brandon in another sense. He admitted to himself that he would have felt far less secure if he had had to direct the work out of his own mind, so to speak. With the group meeting as the principle of lead- ership, it was always possible to justify the exploration of blind alleys because of the general educative effect on the team. Zapf was there; Lucy and Martha were there; Link was sitting next to Zapf, their conversation concerning Link’s mathematical study apparently continuing from yesterday. The other members, Bob Davenport, Georgia Thurlow, and Arthur Oliver, were waiting quietly. Newbridge, for reasons that he didn’t quite understand, proposed for discussion this morning a problem that all of them had spent a great deal of time on previously with the conclusion that a solution was impossible, that there was no feasible way of treating it in an experimental fashion. When Newbridge proposed the problem, Davenport remarked that there was hardly any use of going over it again, that he was satisfied that there was no way of approaching the problem with the equipment and the physical capacities of the lab. This statement had the effect of a shot of adrenaline on Zapf. He said he would like to know what the problem was in detail and, walking to the blackboard, began setting down the “factors” as various members of the group began discuss- ing the problem and simultaneously listing the reasons why it had been abandoned. Very early in the description of the problem it was evi- dent that Zapf was going to disagree about the impossibil- ity of attacking it. The group realized this, and finally the descriptive materials and their recounting of the reasoning that had led to its abandonment dwindled away. Zapf be- gan his statement, which, as it proceeded, might well have been prepared the previous night, although Newbridge knew this was impossible. He couldn’t help being im- pressed with the organized and logical way that Zapf was presenting ideas that must have occurred to him only a few minutes before. Zapf had some things to say, however, which left New- bridge with a mixture of annoyance, irritation, and at the same time, a rather smug feeling of superiority over Zapf in at least one area. Zapf held the opinion that the way that the problem had been analyzed was very typical of group think- ing. With an air of sophistication that made it difficult for a listener to dissent, he proceeded to comment on the American emphasis on team ideas, satirically describing the ways in which they led to a “high level of mediocrity.”
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During this time, Newbridge observed that Link stared studiously at the floor, and he was very conscious of Georgia Thurlow’s and Bob Davenport’s glances toward him at several points of Zapf ’s little speech. Inwardly, Newbridge couldn’t help feeling that this was one point at least in which Zapf was off on the wrong foot. The whole lab, following Jerry’s lead, talked if not practiced the theory of small research teams as the basic organization for effective research. Zapf insisted that the problem could be approached and that he would like to study it for a while himself. Newbridge ended the morning session by remarking that the meetings would continue and that the very fact that a supposedly insoluble experimental problem was now going to get another chance was another indication of the value of such meetings. Zapf immediately remarked that he was not at all averse to meetings to inform the group about the prog- ress of its members. The point he wanted to make was that creative advances were seldom accomplished in such meet- ings, that they were made by an individual “living with” a problem closely and continuously, in a rather personal rela- tionship to it. Newbridge went on to say to Zapf that he was very glad that Zapf had raised these points and that he was sure the group would profit by reexamining the basis on which they had been operating. Newbridge agreed that individual effort was probably the basis for making major advances. He con- sidered the group meetings useful primarily because they kept the group together and they helped the weaker members of the group keep up with the ones who were able to advance more easily and quickly in the analysis of problems. It was clear as days went by and meetings continued that Zapf came to enjoy them because of the pattern that the meetings assumed. It became typical for Zapf to hold forth, and it was unquestionably clear that he was more brilliant, better prepared on the various subjects that were germane to the problem being studied, and more capable of going ahead than anyone there. Newbridge grew increasingly disturbed as he realized that his leadership of the group had been, in fact, taken over. Whenever the subject of Zapf was mentioned in occa- sional meetings with Dr. Goh, Newbridge would comment only on the ability and obvious capacity for work that Zapf had. Somehow he never felt that he could mention his own discomforts, not only because they revealed a weakness on his part but also because it was quite clear that Goh himself was considerably impressed with Zapf ’s work and with the con- tacts he had with him outside the photon laboratory. Newbridge now began to feel that perhaps the intellectual advantages that Zapf had brought to the group did not quite compensate for what he felt were evidences of a breakdown in the cooperative spirit he had seen in the group before Zapf ’s coming. More and more of the morning meetings were skipped. Zapf ’s opinion concerning the abilities of others of the group, except for Link, was obviously low. At times during morning meetings or in smaller discussions his
conversation bordered on rudeness, refusing to pursue an argument when he claimed it was based on another person’s ignorance of the facts involved. His impatience of others led him to also make similar remarks to Dr. Goh. Newbridge inferred this from a conversation with Goh in which Goh asked whether Davenport and Oliver were going to be con- tinued on; and his failure to mention Link, the mathemati- cian, led Newbridge to feel that this was the result of private conversations between Zapf and Goh. It was not difficult for Newbridge to make a quite con- vincing case on whether the brilliance of Zapf was sufficient recompense for the beginning of this breaking up of the group. He spoke privately with Davenport and with Oliver, and it was quite clear that both of them were uncomfortable because of Zapf. Newbridge didn’t press the discussion be- yond the point of hearing them say that they did feel awk- ward and that it was sometimes difficult to understand the arguments Zapf advanced, but often embarrassing to ask him to fill in the basis for his arguments. Newbridge did not in- terview Link in this manner. About six months after Zapf ’s coming into the photon lab, a meeting was scheduled in which the sponsors of the research were coming to get some idea of the work and its progress. It was customary at these meetings for project heads to present the research being conducted in their groups. The members of each group were invited to other meetings that were held later in the day and open to all, but the special meetings were usually made up only of project heads, the head of the laboratory, and the sponsors. As the time for the special meeting approached, it seemed to Newbridge that he must avoid the presentation at all cost. His reasons for this were that he could not trust himself to present the ideas and work that Zapf had advanced because of his apprehension about whether he could present them in sufficient detail and answer such questions about them as might be asked. On the other hand, he did not feel he could ignore these newer lines of work and present only the mate- rial that he had done or that had been started before Zapf ’s arrival. He felt also that it would not be beyond Zapf at all, in his blunt and undiplomatic way—if he were at the meeting, that is—to comment on his [Newbridge’s] presentation and reveal Newbridge’s inadequacy. It also seemed quite clear that it would not be easy to keep Zapf from attending the meet- ing, even though he was not on the administrative level of those invited. Newbridge found an opportunity to speak to Goh and raised the question. He told Goh that, with the meetings coming up and with the interest in the work and with Zapf ’s contributions to the work, Zapf would probably like to come to the meetings, but there was a question of how the others in the group would feel if only Zapf were invited. Goh passed this over very lightly by saying that he didn’t think the group would fail to understand Zapf ’s rather different position and that Zapf certainly should be invited. Newbridge immedi- ately said he agreed: Zapf should present the work because
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much of it was work he had done, and this would be a nice way to recognize Zapf ’s contributions and to reward him, be- cause he was eager to be recognized as a productive member of the lab. Goh agreed, and so the matter was decided. Zapf ’s presentation was very successful and in some ways dominated the meeting. He attracted the interest and attention of many of those who had come, and a long dis- cussion followed his presentation. Later in the evening— with the entire laboratory staff present—in the cocktail period before the dinner, a little circle of people formed about Zapf. One of them was Goh himself, and a lively discussion took place concerning the application of Zapf ’s theory. All of this disturbed Newbridge, and his reaction and behavior were characteristic. He joined the circle, praised Zapf to Goh and to others, and remarked on the brilliance of the work. Newbridge, without consulting anyone, began at this time to take some interest in the possibility of a job elsewhere. After a few weeks he found that a new laboratory of consider- able size was being organized in a nearby city and that the kind of training he had would enable him to get a project-head job equivalent to the one he had at the lab, but with slightly more money. He immediately accepted it and notified Goh by letter, which he mailed on a Friday night to Goh’s home. The letter was quite brief, and Goh was stunned. The letter merely said that he had found a better position, that he didn’t want to appear at the lab any more for personal reasons; that he would
be glad to come back at a later time to assist if there was any mix-up in the past work; that he felt sure Zapf could supply any leadership that the group required; and that his decision to leave so suddenly was based on personal problems—he hinted at problems of health in his family, his mother and fa- ther. All of this was fictitious, of course. Goh took it at face value but still felt that this was very strange behavior and quite unaccountable, for he had always felt his relationship with Newbridge had been warm and that Newbridge was satisfied and, in fact, quite happy and productive. Goh was considerably disturbed, because he had already de- cided to place Zapf in charge of another project that was going to be set up very soon. He had been wondering how to explain this to Newbridge, in view of the obvious help Newbridge was getting from Zapf and the high regard that Newbridge must have felt toward Zapf. Goh had, indeed, considered the possi- bility that Newbridge could add to his staff another person with the kind of background and training that had been unique in Zapf and had proved so valuable. Goh did not make any attempt to meet Newbridge. In a way, he felt aggrieved about the whole thing. Zapf, too, was surprised at the suddenness of Newbridge’s departure. When Goh asked Zapf whether he preferred to stay with the photon group instead of the new project for the Air Force, he chose the Air Force project and went on to that job the following week. The photon lab was hard hit. The leadership of the lab was given to Link with the understanding that this would be temporary until someone could come in to take over.
CASE 10: STAR ENTERPRISES—RITA’S ISSUES AT WORK 1 By Nuzhat Lotia, University of Melbourne
Rita has been working for Star Enterprises for the last 13 years. Star Enterprises is a medium-sized auto-parts man- ufacturer and supplies parts to one of the largest car manu- facturing companies in Australia. The company has 450 employees. Despite the recent financial crisis, Star Enterprises has not suffered great losses. This is due to their commitment to quality and reliability. Rita started out on the factory floor when she began work- ing for Star Enterprises at age 20. She has since worked her way through to her current position as senior supervisor in the Quality Control Department. She has been working in this position for the last three years. She has moved up to more senior positions in the company because she is recognized as a hard-working and dedicated worker who takes great pride in the work that she does. Rita is one of the most experienced workers in the section and the quality control manager relies heavily on her knowl- edge and experience. She knows almost everyone at the com- pany and has developed good relations with her coworkers, who rely on her for support and expertise.
Recently, Rita has been very unhappy with the situation at work. It all started when her boss, Mr. Blake, the quality con- trol manager, left for a senior position in Star Enterprises’ sister company. After he left, Rita was asked by the general manager if she would consider working as the acting quality control manager until the position was filled. Rita was very happy to take up the opportunity. She had often taken on that position informally in the past when Mr. Blake had been away on leave or professional development. She had always felt that, being the most experienced person in the depart- ment, it was her responsibility to take on these additional duties while her boss was away. She felt a sense of pride in doing so. When the offer of becoming the acting quality control manager was made to her six months ago, she was very ex- cited and felt that the company had acknowledged her con- tribution, her experience, and her dedication to her work by giving her this responsibility. She was also quite happy to take on the position because it meant a higher pay rate. Rita could do with the additional income as she had recently bought
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a house and was finding it difficult to manage with her cur- rent income. Rita was really enjoying this added responsibility of man- aging the department. She had the opportunity to participate in senior management meetings and found that she was able to contribute to the discussions. The general manager was very supportive and would often drop by her office to make sure she was coping well with the work, and explaining that he was always available for a chat if she needed help. While she had settled into this new role quite well, she was strug- gling with managing the budget and finances of the depart- ment. She had never dealt with departmental finances or managed budgets in her past roles, even when she was infor- mally acting on the manager’s behalf. She felt that she needed some formal training in the area to enable her to function well in this aspect of the job. She looked up some short courses being offered by professional development and train- ing organizations and found one that she felt was perfect for her needs. The course was a bit expensive, but she felt that it would be very beneficial despite the cost. The next day, she approached the general manager with a request for funding her to attend the 10-day training. While the general manager showed empathy for her situation, he said that he could not approve this expenditure as they had already advertised for the position and they would be hiring a manager soon, at which point she would go back to her se- nior supervisor role. He explained that he could not justify the expenditure on Rita’s professional development. Rita could not believe what she had just heard. She had been unaware that the manager position was being adver- tised. She was very upset and this was obvious from her face. She mumbled, “I understand” and quickly got up and left the general manager’s office. The truth was that she did not un- derstand; in fact, she felt betrayed. She had in her heart hoped that her acting role would eventually turn into a per- manent position, as she felt that she had been doing her job really well except for the budgetary side of things, which she was quite willing to learn about.
After coming out of the general manager’s office, she ran to her office, locked the door and started crying. She felt very upset and angry. She felt she had always given her best to the company, but had been let down. At that moment, she decided that if she was going to be treated so badly, she would have nothing to do with the company. She would quit tomorrow. That evening at home, she realized that she could not make such a rash decision because she could not afford to lose the income. So , she thought to herself, I will stay, but I will show them what they are losing out on . She continued to work in the acting quality manager position, but did not take any initiative. Instead, she just performed the routine work. She avoided meeting with the general manager as well. Every- one in the department noticed this change in Rita, but could not figure out what had happened. When the new manager, James Downer, joined and Rita returned to her senior supervisor position, she decided that she was not going to help him in any way. James was new to the industry. Before taking up this position, he had been working in quality control in a home appliances manufactur- ing company. While he had come highly recommended, he still had to learn a lot about auto manufacturing. He often approached Rita for advice. Rita would tell him what she knew and supported him initially, but then the resentment would begin to set in. When James started making changes to the quality con- trol systems that Rita had helped design and set up, the re- sentment became even greater but she bottled up her feelings. Rita would answer abruptly when James approached her for advice. She also started avoiding him. She would often walk away to the kitchen or to the printer when she saw him ap- proaching her desk or would pick up the phone and start making a call. Every now and then, Rita would call in sick. She was once again beginning to consider quitting her job.
1 Case study prepared by Nuzhat Lotia, Department of Management and Marketing, University of Melbourne. This case is not to be reproduced or distributed without permission.
CASE 11: TAMARACK INDUSTRIES By David J. Cherrington, Brigham Young University
Tamarack Industries manufactures motorboats primarily used for water skiing. Students are hired during summer months to fill in for permanent employees on vacation. In past years, students worked alongside permanent employees, but a few staff complained that the students were inexperi- enced, slow, and arrogant. In general, permanent staff dis- liked the students’ behavior, such as listening to music with earphones while working. This summer, the company reorga- nized all permanent employees into three production teams
(they usually have four teams, but 25 percent are on vacation at any given time) and assigned the 16 summer students to their own team on the fourth production line. The supervisor, Dan Jensen, decided to try a different strat- egy this summer and have all the college students work on the new line. He asked Mark Allen to supervise the new crew be- cause Mark claimed that he knew everything about boats and could perform every job “with my eyes closed.” Mark was happy to accept the new job and participated in selecting the
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student hires. Mark’s crew was called “the Geek Team” because all the college students were savvy with computers, unlike most of the permanent employees. Mark spent many hours training his student team to get the line running at full production. The college students learned quickly, and by the end of June their production rate was up to standard, with an error rate that was only slightly above normal. To simplify the learning process, Dan Jensen assigned the Geek Team long production runs that generally consisted of 30 to 40 identical units. Thus, the training period was shortened and errors were reduced. Shorter pro- duction runs were assigned to the experienced teams. By the middle of July, a substantial rivalry had been cre- ated between the Geek Team and the older workers. At first, the rivalry was good-natured. But after a few weeks, the older workers became resentful of the remarks made by the college students. The Geek Team often met its production schedules, with time to spare at the end of the day for goofing around. It wasn’t uncommon for someone from the Geek Team to go to another line pretending to look for materials just to make demeaning comments. The experienced workers resented having to perform all the shorter production runs and began to retaliate with sabotage. They would sneak over during breaks and hide tools, dent materials, install something crooked, and in other small ways do something that would slow production for the Geek Team.
Dan felt good about his decision to form a separate crew of college students, but when he heard reports of sabotage and rivalry, he became very concerned. Because of com- plaints from the experienced workers, Dan equalized the production so that all of the crews had similar production runs. The rivalry, however, did not stop. The Geek Team continued to finish early and flaunt their performance in front of the other crews. One day, the Geek Team suspected that one of their assemblies was going to be sabotaged during the lunch break by one of the experienced crews. By skillful decep- tion, they were able to substitute an assembly from the other experienced line for theirs. By the end of the lunch period, the Geek Team was laughing wildly because of their deception, while one experienced crew was very an- gry with the other one. Dan Jensen decided that the situation had to be changed and announced that the job assignments between the differ- ent crews would be shuffled. The employees were told that when they appeared for work the next morning, the names of the workers assigned to each crew would be posted on the bulletin board. The announcement was not greeted with much enthusiasm, and Mark Allen decided to talk Dan out of his idea. Mark suspected that many of the college students would quit if their team was broken up.
CASE 12: THE OUTSTANDING FACULTY AWARD By David J. Cherrington, Brigham Young University; Revised by Steven L. McShane, The University of Western Australia
I recently served on the Outstanding Faculty Award commit- tee for the College of Business. This award is our college’s highest honor for a faculty member, which is bestowed at a special reception ceremony. At the first meeting, our commit- tee discussed the nomination process and decided to follow our traditional practice of inviting nominations from both the faculty and students. During the next month, we received six completed files with supporting documentation. Three of the nominations came from department chairs, two from fac- ulty who recommended their colleagues, and one from a group of 16 graduate students. At the second meeting, we agreed that we didn’t know the six applicants well enough to make a decision that day, so we decided that we would read the applications on our own and rank them. There was no discussion about ranking criteria; I think we assumed that we shared a common definition of the word “outstanding.” During the third meeting, it quickly became apparent that each committee member had a different interpretation of what constitutes an “outstanding” faculty member. The discussion was polite, but we debated the extent to which
this was an award for teaching, or research, or service to the college, or scholarly textbook writing, or consulting, or ser- vice to society, or some other factor. After three hours, we agreed on five criteria that we would apply to independently rate each candidate using a five-point scale. When we reconvened the next day, our discussion was much more focused as we tried to achieve a consensus regarding how we judged each candidate on each criterion. After a lengthy discussion, we finally completed the task and averaged the ratings. The top three scores had an average rating (out of a maximum of 25) of 21, 19.5, and 18.75. I assumed the person with the highest total would receive the award. Instead, my colleagues began debating over the rele- vance of the five criteria that we had agreed on the previous day. Some committee members felt, in hindsight, that the criteria were incorrectly weighted or that other criteria should be considered. Although they did not actually say this, I sensed that at least two colleagues on the committee wanted the criteria or weights changed because their preferred candidate didn’t get the highest score using the existing formula. When we
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changed the weights in various ways, a different candidate among the top three received the top score. The remaining three candidates received lower ratings every time. Dr. H always received the lowest score, usually around 12 on the 25-point range. After almost two hours of discussion, the Associate Dean turned to one committee member and said, “Dolan, I sure would like to see Dr. H in your department receive this honor. He retires next year and this would be a great honor for him and no one has received this honor in your depart- ment recently.” Dolan agreed, “Yes, this is Dr. H’s last year with us and it would be a great way for him to go out. I’m sure he would feel very honored by this award.” I sat there stunned at the suggestion, while Dolan retold how Dr. H had been active in public service, his only real strength on our criteria. I was even more stunned when
another committee member, who I think was keen to fin- ish the meeting, said, “Well, I so move” and Dolan sec- onded it. The Associate Dean, who was conducting the meeting, said, “Well, if the rest of you think this is a good idea, all in favor say aye.” A few members said “Aye,” and, without call- ing for nays, the Associate Dean quickly proceeded to explain what we needed to do to advertise the winner and arrange the ceremony. During my conversations with other committee members over the next two weeks, I learned that everyone—including the two who said “Aye”—were as shocked as I was at our committee’s decision. I thought we made a terrible decision, and I was embarrassed to be a member of the committee. A few weeks later, we were appropriately punished when Dr. H gave a 45-minute acceptance speech that started poorly and only got worse.
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Theory Building and Systematic Research Methods THEORY BUILDING
People need to make sense of their world, so they form theo- ries about the way the world operates. A theory is a general set of propositions that describes interrelationships among several concepts. We form theories for the purpose of predict- ing and explaining the world around us. 1 What does a good theory look like? First, it should be stated as clearly and sim- ply as possible so that the concepts can be measured and there is no ambiguity regarding the theory’s propositions. Second, the elements of the theory must be logically consis- tent with each other, because we cannot test anything that doesn’t make sense. Third, a good theory provides value to society; it helps people understand their world better than they would without the theory. 2 Theory building is a continuous process that typically includes the inductive and deductive stages shown in Exhibit A.1. 3 The inductive stage draws on personal experi- ence to form a preliminary theory, whereas the deductive stage uses the scientific method to test the theory. The inductive stage of theory building involves observing the world around us, identifying a pattern of relationships, and then forming a theory from these personal observations. For example, you might casually notice that new employees want their supervisor to give direction, whereas this leadership style irritates long-service employees. From these observations, you form a theory about the effectiveness of directive leader- ship. (See Chapter 12 for a discussion of this leadership style.)
POSITIVISM VERSUS INTERPRETIVISM
Research requires an interpretation of reality, and research- ers tend to perceive reality in one of two ways. A common view, called positivism, is that reality exists independent of people. It is “out there” to be discovered and tested. Posi- tivism is the foundation for most quantitative research (sta- tistical analysis). It assumes that we can measure variables and those variables have fixed relationships with other vari- ables. For example, the positivist perspective says that we could study whether a supportive style of leadership re- duces stress. If we find evidence that it does, then someone else studying leadership and stress would “discover” the same relationship. Interpretivism takes a different view of reality. It suggests that reality comes from shared meaning among people in a particular environment. For example, supportive leadership is a personal interpretation of reality, not something that can be measured across time and people. Interpretivists rely mainly on qualitative data, such as observation and nondirective in- terviews. They particularly listen to the language people use to understand the common meaning that people assign to various events or phenomena. For example, they might argue that you need to experience and observe supportive leader- ship to effectively study it. Moreover, you can’t really predict relationships because the specific situation shapes reality. 4 Most OB scholars identify themselves somewhere between the extreme views of positivism and interpretivism. Many
appendix A
EXHIBIT A.1 Theory Building and Theory Testing
Inductive
Deductive
Personal observation
Forming hypotheses
Defining and measuring constructs
Preliminary theory
Testing hypotheses
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believe that inductive research should begin with an interpre- tivist angle. We should consider a new topic with an open mind and search for shared meaning among people in the situation being studied. In other words, researchers should let the participants define reality rather than let the researcher’s preconceived notions shape that reality. This process involves gathering qualitative information and letting this informa- tion shape their theory. 5 After the theory emerges, researchers shift to the positivist perspective by quantitatively testing relationships in that theory.
THEORY TESTING: THE DEDUCTIVE
PROCESS
Once a theory has been formed, we shift into the deductive stage of theory building. This process includes forming hy- potheses, defining and measuring constructs, and testing hypotheses (see Exhibit A.1). Hypotheses make empirically testable declarations that certain variables and their corre- sponding measures are related in a specific way proposed by the theory. For instance, to find support for directive leader- ship theory, we need to form and then test a specific hypoth- esis from that theory. One such hypothesis might be: “New employees are more satisfied with supervisors who exhibit a directive rather than nondirective leadership style.” Hypoth- eses are indispensable tools of scientific research, because they provide the vital link between the theory and empirical verification.
Defining and Measuring Constructs Hypotheses are testable only if we can define and then form measurable in- dicators of the concepts stated in those hypotheses. Consider the hypothesis in the previous paragraph about new employ- ees and directive leadership. To test this hypothesis, we first need to define the concepts, such as “new employees,” “directive leadership,” and “supervisor.” These are known as constructs, because they are abstract ideas constructed by the researcher that can be linked to observable information. Organizational behavior researchers developed the construct called directive leadership to help them understand the differ- ent effects that leaders have on followers. We can’t directly see, taste, or smell directive leadership; instead, we rely on indirect indicators of its existence, such as observing someone giving directions, maintaining clear performance standards, and ensuring that procedures and practices are followed. As you can see, defining constructs well is very important, because these definitions become the foundation for finding or developing acceptable measures of those constructs. We can’t measure directive leadership if we have only a vague idea about what this concept means. The better the construct is defined, the better our chances of finding or developing a good measure of that construct. However, even with a good definition, constructs can be difficult to measure, because the empirical representation must capture several elements in the definition. A measure of directive leadership must be able to
identify not only people who give directions but also those who maintain performance standards and ensure that proce- dures are followed.
Testing Hypotheses The third step in the deductive process is to collect data for the empirical measures of the variables. Following our directive leadership example, we might conduct a formal survey in which new employees indi- cate the behavior of their supervisors and their attitudes toward their supervisors. Alternatively, we might design an experiment in which people work with someone who applies either a directive or a nondirective leadership style. When the data have been collected, we can use various procedures to statistically test our hypotheses. A major concern in theory building is that some research- ers might inadvertently find support for their theory simply because they use the same information used to form the the- ory during the inductive stage. Consequently, the deductive stage must collect new data that are completely independent of the data used during the inductive stage. For instance, you might decide to test your theory of directive leadership by studying employees in another organization. Moreover, the inductive process may have relied mainly on personal obser- vation, whereas the deductive process might use survey ques- tionnaires. By studying different samples and using different measurement tools, we minimize the risk of conducting cir- cular research.
USING THE SCIENTIFIC METHOD
Earlier, we said that the deductive stage of theory building follows the scientific method. The scie n tific method is a sys- tematic, controlled, empirical, and critical investigation of hypothetical propositions about the presumed relationships among natural phenomena. 6 There are several elements to this definition, so let’s look at each one. First, scientific re- search is systematic and controlled , because researchers want to rule out all but one explanation for a set of interrelated events. To rule out alternative explanations, we need to con- trol them in some way, such as by keeping them constant or removing them entirely from the environment. Second, we say that scientific research is empirical because researchers need to use objective reality—or as close as we can get to it—to test a theory. They measure observable elements of the environment, such as what a person says or does, rather than relying on their own subjective opinion to draw conclu- sions. Moreover, scientific research analyzes these data using acceptable principles of mathematics and logic. Third, scientific research involves critical investigation . This means that the study’s hypotheses, data, methods, and results are openly described so that other experts in the field can properly evaluate the research. It also means that scholars are encouraged to critique and build on previous research. The scientific method encourages the refinement and eventu- ally the replacement of a particular theory with one that better suits our understanding of the world.
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GROUNDED THEORY: AN ALTERNATIVE
APPROACH
The scientific method dominates the quantitative approach to systematic research, but another approach, called grounded theory, dominates research using qualitative methods. 7 Grounded theory is a process of developing knowl- edge through the constant interplay of data collection, analy- sis, and theory development. It relies mainly on qualitative methods to form categories and variables, analyze relation- ships among these concepts, and form a model based on the observations and analysis. Grounded theory combines the inductive stages of theory development by cycling back and forth between data collection and analysis to converge on a robust explanatory model. This ongoing reciprocal process results in theory that is grounded in the data (hence the name grounded theory). Like the scientific method, grounded theory is a system- atic and rigorous process of data collection and analysis. It requires specific steps and documentation and adopts a posi- tivist view by assuming that the results are generalizable to other settings. However, grounded theory also takes an inter- pretivist view by building categories and variables from the perceived realities of the subjects rather than from an as- sumed universal truth. 8 It also recognizes that personal biases are not easily removed from the research process.
SELECTED ISSUES IN ORGANIZATIONAL BEHAVIOR RESEARCH
There are many issues to consider in theory building, partic- ularly when we use the deductive process to test hypotheses. Some of the more important issues are sampling, causation, and ethical practices in organizational research.
SAMPLING IN ORGANIZATIONAL
RESEARCH
To find out why things happen in organizations, we typically gather information from a few sources and then draw conclu- sions about the larger population. If we survey several employ- ees and determine that older employees are more loyal to their company, then we would like to generalize this statement to all older employees in our population, not just those whom we surveyed. Scientific inquiry generally requires that re- searchers engage in representative sampling —that is, sam- pling a population in such a way that we can extrapolate the results of the sample to the larger population. One factor that influences representativeness is whether the sample is selected in an unbiased way from the larger pop- ulation. Let’s suppose that you want to study organizational commitment among employees in your organization. A casual procedure might result in sampling too few employees from the head office and too many located elsewhere in the country. If head office employees actually have higher loyalty than employees located elsewhere, the biased sampling would cause the results to underestimate the true level of loyalty among employees in the company. If you repeat the
process again next year but somehow overweight employees from the head office, the results might wrongly suggest that employees have increased their organizational commitment over the past year. In reality, the only change may be the di- rection of sampling bias. How do we minimize sampling bias? The answer is to ran- domly select the sample. A randomly drawn sample gives each member of the population an equal probability of being chosen, so there is less likelihood that a subgroup within that population will dominate the study’s results. The same principle applies to the random assignment of participants to groups in experimental designs. If we want to test the effects of a team development training program, we need to randomly place some employees in the training group and randomly place others in a group that does not receive training. Without this random selection, each group might have different types of employees, so we wouldn’t know whether the training explains the differences between the two groups. Moreover, if employees respond differently to the training program, we couldn’t be sure that the training pro- gram results are representative of the larger population. Of course, random sampling does not necessarily produce a per- fectly representative sample, but we do know that it is the best approach to ensure unbiased selection. The other factor that influences representativeness is sam- ple size. Whenever we select a portion of the population, there will be some error in our estimate of the population values. The larger the sample, the less error will occur in our estimate. Let’s suppose that you want to find out how em- ployees in a 500-person firm feel about smoking in the work- place. If you asked 400 of those employees, the information would provide a very good estimate of how the entire work- force in that organization feels. If you survey only 100 em- ployees, the estimate might deviate more from the true population. If you ask only 10 people, the estimate could be quite different from what all 500 employees feel. Notice that sample size goes hand in hand with random selection. You must have a sufficiently large sample size for the principle of randomization to work effectively. In our ex- ample of attitudes toward smoking, we would do a poor job of random selection if our sample consisted of only 10 employees from the 500-person organization. The reason is that these 10 people probably wouldn’t capture the diversity of employees throughout the organization. In fact, the more diverse the population, the larger the sample size should be, to provide adequate representation through random selection.
CAUSATION IN ORGANIZATIONAL
RESEARCH
Theories present notions about relationships among con- structs. Often, these propositions suggest a causal relation- ship, namely, that one variable has an effect on another variable. When discussing causation, we refer to variables as being independent or dependent. Independent variables are the presumed causes of dependent variables , which are the
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presumed effects. In our earlier example of directive leader- ship, the main independent variable (there might be others) would be the supervisor’s directive or nondirective leadership style, because we presume that it causes the dependent vari- able (satisfaction with supervision). In laboratory experiments (described later), the indepen- dent variable is always manipulated by the experimenter. In our research on directive leadership, we might have subjects (new employees) work with supervisors who exhibit direc- tive or nondirective leadership behaviors. If subjects are more satisfied under the directive leaders, we would be able to infer an association between the independent and depen- dent variables. Researchers must satisfy three conditions to provide suffi- cient evidence of causality between two variables. 9 The first condition of causality is that the variables are empirically as- sociated with each other. An association exists whenever one measure of a variable changes systematically with a measure of another variable. This condition of causality is the easiest to satisfy, because there are several well-known statistical measures of association. A research study might find, for in- stance, that heterogeneous groups (in which members come from diverse backgrounds) produce more creative solutions to problems. This might be apparent because the measure of creativity (such as number of creative solutions produced within a fixed time) is higher for teams that have a high score on the measure of group heterogeneity. They are statistically associated or correlated. The second condition of causality is that the independent variable precedes the dependent variable in time. Sometimes, this condition is satisfied through simple logic. In our group heterogeneity example, it doesn’t make sense to say that the number of creative solutions caused the group’s heterogeneity, because the group’s heterogeneity existed before the group pro- duced the creative solutions. In other situations, however, the temporal relationship among variables is less clear. One exam- ple is the ongoing debate about job satisfaction and organiza- tional commitment. Do companies develop more loyal employees by increasing their job satisfaction, or do changes in organizational loyalty cause changes in job satisfaction? Simple logic does not answer these questions; instead, researchers must use sophisticated longitudinal studies to build up evidence of a temporal relationship between the two variables. The third requirement for evidence of a causal relation- ship is that the statistical association between two variables cannot be explained by a third variable. There are many associations that we quickly dismiss as causally related. For example, there is a statistical association between the num- ber of storks in an area and the birth rate in that area. We know that storks don’t bring babies, so something else must cause the association between these two variables. The real explanation is that both storks and birth rates have a higher incidence in rural areas. In other studies, the third variable effect is less apparent. Many years ago, before polio vaccines were available, a study
in the United States reported a surprisingly strong association between consumption of a certain soft drink and the inci- dence of polio. Was polio caused by drinking this pop, or did people with polio have an unusual craving for this beverage? Neither. Both polio and consumption of the pop drink were caused by a third variable: climate. There was a higher inci- dence of polio in the summer months and in warmer cli- mates, and people drink more liquids in these climates. 10 As you can see from this example, researchers have a difficult time supporting causal inferences, because third-variable effects are sometimes difficult to detect.
ETHICS IN ORGANIZATIONAL RESEARCH
Organizational behavior researchers need to abide by the eth- ical standards of the society in which the research is con- ducted. One of the most important ethical considerations is the individual respondent’s freedom to participate in the study. For example, it is inappropriate to force employees to fill out a questionnaire or attend an experimental interven- tion for research purposes only. Moreover, researchers have an obligation to tell potential subjects about any possible risks inherent in the study so that participants can make an informed choice about whether to be involved. Finally, researchers must be careful to protect the privacy of those who participate in the study. This usually includes letting people know when they are being studied as well as guaranteeing that their individual information will remain confidential (unless publication of identities is otherwise granted). Researchers maintain anonymity through careful security of data. The research results usually aggregate data in numbers large enough that they do not reveal the opinions or characteristics of any specific individual. For example, we would report the average absenteeism of employees in a de- partment rather than state the absence rates of each person. When researchers are sharing data with other researchers, it is usually necessary to code each case so that individual identi- ties are not known.
RESEARCH DESIGN STRATEGIES
So far, we have described how to build a theory, including the specific elements of empirically testing the theory within the standards of scientific inquiry. But what are the different ways to design a research study so that we get the data neces- sary to achieve our research objectives? There are many strat- egies, but they mainly fall under three headings: laboratory experiments, field surveys, and observational research.
LABORATORY EXPERIMENTS
A laboratory experiment is any research study in which in- dependent variables and variables outside the researcher’s main focus of inquiry can be controlled to some extent. Lab- oratory experiments are usually located outside the everyday work environment, such as in a classroom, simulation lab, or any other artificial setting in which the researcher can manip- ulate the environment. Organizational behavior researchers
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sometimes conduct experiments in the workplace (called field e x periments ) in which the independent variable is manipu- lated. However, researchers have less control over the effects of extraneous factors in field experiments than they have in laboratory situations.
Advantages of Laboratory Experiments There are many advantages of laboratory experiments. By definition, this research method offers a high degree of control over ex- traneous variables that would otherwise confound the rela- tionships being studied. Suppose we wanted to test the effects of directive leadership on the satisfaction of new employees. One concern might be that employees are influenced by how much leadership is provided, not just the type of leadership style. An experimental design would allow us to control how often the supervisor exhibited this style so that this extrane- ous variable does not confound the results. A second advantage of lab studies is that the indepen- dent and dependent variables can be developed more pre- cisely than is possible in a field setting. For example, the researcher can ensure that supervisors in a lab study apply specific directive or nondirective behaviors, whereas real- life supervisors would use a more complex mixture of lead- ership behaviors. By using more precise measures, we are more certain that we are measuring the intended construct. Thus, if new employees are more satisfied with supervisors in the directive leadership condition, we are more confident that the independent variable was directive leadership rather than some other leadership style. A third benefit of laboratory experiments is that the inde- pendent variable can be distributed more evenly among par- ticipants. In our directive leadership study, we can ensure that approximately half of the subjects have a directive supervisor, whereas the other half have a nondirective supervisor. In nat- ural settings, we might have trouble finding people who have worked with a nondirective leader and, consequently, we couldn’t determine the effects of this condition.
Disadvantages of Laboratory Experiments With these powerful advantages, you might wonder why laboratory experiments are the least appreciated form of organizational be- havior research. 11 One obvious limitation of this research method is that it lacks realism, and thus the results might be different in the real world. One argument is that laboratory ex- periment subjects are less involved than their counterparts in an actual work situation. This is sometimes true, though many lab studies have highly motivated participants. Another criticism is that the extraneous variables controlled in the lab setting might produce a different effect of the independent variable on the dependent variables. This might also be true, but remember that the experimental design controls variables in accordance with the theory and its hypotheses. Consequently, this concern is really a critique of the theory, not the lab study. Finally, there is the well-known problem that participants are aware they are being studied, which causes them to act
differently than they normally would. Some participants try to figure out how the researcher wants them to behave and then deliberately try to act that way. Other participants try to upset the experiment by doing just the opposite of what they believe the researcher expects. Still others might act unnatu- rally simply because they know they are being observed. For- tunately, experimenters are well aware of these potential problems and are usually (though not always) successful at disguising the study’s true intent.
FIELD SURVEYS
Field surveys collect and analyze information in a natural environment—an office, a factory, or some other existing lo- cation. The researcher takes a snapshot of reality and tries to determine whether elements of that situation (including the attitudes and behaviors of people in that situation) are associ- ated as hypothesized. Everyone does some sort of field re- search. You might think that people from some states are better drivers than others, so you “test” your theory by look- ing at the way people with out-of-state license plates drive. Although your methods of data collection might not satisfy scientific standards, this is a form of field research because it takes information from a naturally occurring situation. One advantage of field surveys is that the variables often have a more powerful effect than they would in a laboratory experiment. Consider the effect of peer pressure on the be- havior of members within the team. In a natural environ- ment, team members would form very strong cohesive bonds over time, whereas a researcher would have difficulty replicat- ing this level of cohesiveness and corresponding peer pressure in a lab setting. Another advantage of field surveys is that the researcher can study many variables simultaneously, thereby permitting a fuller test of more complex theories. Ironically, this is also a disadvantage of field surveys, because it is difficult for the researcher to contain his or her scientific inquiry. There is a tendency to shift from deductive hypothesis testing to more inductive exploratory browsing through the data. If these two activities become mixed together, the researcher can lose sight of the strict covenants of scientific inquiry. The main weakness with field surveys is that it is very difficult to satisfy the conditions for causal conclusions. One reason is that the data are usually collected at one point in time, so the researcher must rely on logic to decide whether the independent variable really preceded the de- pendent variable. Contrast this with the lab study in which the researcher can usually be confident that the indepen- dent variable was applied before the dependent variable oc- curred. Increasingly, organizational behavior studies use longitudinal research to provide a better indicator of tem- poral relations among variables, but it is still not as precise as the lab setting. Another reason causal analysis is difficult in field surveys is that extraneous variables are not con- trolled as they are in lab studies. Without this control, there is a higher chance that a third variable might explain the
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478 Appendix A
endnotes 1. F. N. Kerlinger, Foundations of Behavioral Research
(New York: Holt, Rinehart, & Winston, 1964), p. 11. 2 . J. B. Miner, Theories of Organizational Behavior (Hinsdale, IL:
Dryden, 1980), pp. 7–9. 3. Ibid., pp. 6–7. 4. J. Mason, Qualitative Researching (London: Sage, 1996). 5. A. Strauss and J. Corbin (eds.), Grounded Theory in Practice
(London: Sage Publications, 1997); B. G. Glaser and A. Strauss, The Discovery of Grounded Theory: Strategies for Quali- tative Research (Chicago, IL: Aldine Publishing Co, 1967).
6. Kerlinger, Foundations of Behavioral Research , p. 13. 7. Strauss and Corbin, Grounded Theory in Practice ; Glaser
and Strauss, The Disco v ery of Grounded Theory .
8. W. A. Hall and P. Callery, “Enhancing the Rigor of Grounded Theory: Incorporating Reflexivity and Relationality,” Qualitative Health Research , 11 (March 2001), pp. 257–72.
9. P. Lazarsfeld, Survey Design and Analysis (New York: The Free Press, 1955).
10. This example is cited by D. W. Organ and T. S. Bateman, Organizational Behavior , 4th ed. (Homewood, IL: Irwin, 1991), p. 42.
11. Ibid., p. 45. 12. R. I. Sutton and A. Hargadon, “Brainstorming Groups in
Context: Effectiveness in a Product Design Firm,” Admin- istrative Science Quarterly , 41 (1996), pp. 685–718.
constructs, p. 474 field surveys, p. 477 grounded theory, p. 475 hypotheses, p. 474
interpretivism, p. 473 laboratory experiment, p. 476 positivism, p. 473 representative sampling, p. 475
scientific method, p. 474 theory, p. 473
key terms
relationship between the hypothesized independent and dependent variables.
OBSERVATIONAL RESEARCH
In their study of brainstorming and creativity, Robert Sutton and Andrew Hargadon observed 24 brainstorming sessions at IDEO, a product design firm in Palo Alto, California. They also attended a dozen “Monday morning meetings,” con- ducted 60 semi-structured interviews with IDEO executives and designers, held hundreds of informal discussions with these people, and read through several dozen magazine arti- cles about the company. 12 Sutton and Hargadon’s use of observational research and other qualitative methods was quite appropriate for their re- search objective, which was to reexamine the effectiveness of brainstorming beyond the number of ideas generated. Observa- tional research generates a wealth of descriptive accounts about the drama of human existence in organizations. It is a useful vehicle for learning about the complex dynamics of people and their activities, such as brainstorming. (Sutton and Hargadon’s study is cited in the chapter on team decision making.) Participant observation takes the observation method one step further by having the observer take part in the organiza- tion’s activities. This experience gives the researcher a fuller understanding of the activities compared with just watching others participate in those activities.
Despite its intuitive appeal, observational research has a number of weaknesses. The main problem is that the observer is subject to the perceptual screening and organizing biases that we discuss in Chapter 3 of this textbook. There is a tendency to overlook the routine aspects of organizational life, even though they may prove to be the most important data for research pur- poses. Instead, observers tend to focus on unusual information, such as activities that deviate from what the observer expects. Because observational research usually records only what the observer notices, valuable information is often lost. Another concern with the observation method is that the researcher’s presence and involvement may influence the peo- ple whom he or she is studying. This can be a problem in short-term observations, but in the long term people tend to return to their usual behavior patterns. With ongoing obser- vations, such as Sutton and Hargadon’s study of brainstorm- ing sessions at IDEO, employees eventually forget that they are being studied. Finally, observation is usually a qualitative process, so it is more difficult to empirically test hypotheses with the data. Instead, observational research provides rich information for the inductive stages of theory building. It helps us form ideas about the way things work in organizations. We begin to see relationships that lay the foundation for new perspectives and theory. We must not confuse this inductive process of theory building with the deductive process of theory testing.
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1. D. Duggan, “Quicken Loans Takes Wraps Off New Downtown Detroit HQ,” Carin’s Detroit Business, 11 August 2010; L. Freifeld, “I Want to Work There!” Training, July-August 2012, 24; V. Wong, “This CEO Gives Every Employee His Cell Number (Seriously),” Businessweek, 22 October 2012; J. Gallagher, “Quicken Loans’ Top Echelon Cares About Rank and File,” Detroit Free Press, 18 November 2012; L. Aguilar, “Gilbert Teams up with Retailers to Revive Downtown,” Detroit News, 4 May 2013, A8; J. Gallagher and J. C. Reindl, “Fun Plus Hard Work Equal Success for Quicken Loans,” Detroit Free Press, 27 April 2013; A. Lewan, “Quicken Loans Innovates with a “Small Business” Culture,” Michipreneur, 5 March 2013.
2. M. Warner, “Organizational Behavior Revisited,” Human Relations 47 (October 1994): 1151–66; R. Westwood and S. Clegg, “The Discourse of Organization Studies: Dissensus, Politics, and Peradigms,” in Debating Organi- zation: Point-Counterpoint in Organization Studies, ed. R. Westwood and S. Clegg (Malden, MA: Blackwood, 2003), 1– 42.
3. R. N. Stern and S. R. Barley, “Organizations as Social Systems: Organization Theory’s Neglected Mandate,” Ad- ministrative Science Quarterly 41 (1996): 146–62; D. Katz and R. L. Kahn, The Social Psychology of Organizations (New York: Wiley, 1966), Ch. 2.
4. L. E. Greiner, “A Recent History of Organizational Behavior,” in Organizational Behaviour, ed. S. Kerr (Columbus, OH: Grid, 1979), 3–14; J. Micklethwait and A. Wooldridge, The Company: A Short History of a Revolutionary Idea (New York: Random House, 2003).
5. B. Schlender, “The Three Faces of Steve,” Fortune, 9 November 1998, 96–101.
6. J. A. Conger, “Max Weber’s Conceptualization of Charismatic Authority: Its Influence on Organizational Research,” The Leadership Quarterly 4, no. 3–4 (1993): 277–88; R. Kanigel, The One Best Way: Frederick Winslow Taylor and the Enigma of Efficiency (New York: Viking, 1997); T. Takala, “Plato on Leadership,” Journal of Busi- ness Ethics 17 (May 1998): 785–98; J. A. Fernandez, “The Gentleman’s Code of Confucius: Leadership by Val- ues,” Organizational Dynamics 33, no. 1 (February 2004): 21–31.
7. E. O’Connor, “Minding the Workers: The Meaning of ‘Human’ and ‘Human Relations’ in Elton Mayo,” Orga- nization 6, no. 2 (May 1999): 223–46; H. C. Metcalf and L. Urwick, Dynamic Administration: The Collected Papers of Mary Parker Follett (New York: Harper & Brothers, 1940); J. Smith, “The Enduring Legacy of Elton Mayo,” Human Relations 51, no. 3 (1998): 221–49; K. Hallahan, “W. L. Mackenzie King: Rockefeller’s ‘Other’ Public Relations Counselor in Colorado,” Public Relations Review 29, no. 4 (2003): 401–14.
8. J. A. Sonnenfeld, “Shedding Light on the Hawthorne Studies,” Journal of Occupational Behaviour 6, no. 2 (1985): 111–30; C. D. Wrege, “Solving Mayo’s Mystery: The First Complete Account of the Origin of the Hawthorne Studies—The Forgotten Contributions of
C. E. Snow and H. Hibarger,” in Academy of Management Proceedings (August 1976), 12–16; O’Connor, “Minding the Workers”; “A Field Is Born,” Harvard Business Review 86, no. 7/8 (2008): 164.
9. S. L. Rynes et al., “Behavioral Coursework in Business Education: Growing Evidence of a Legitimacy Crisis,” Academy of Management Learning & Education 2, no. 3 (2003): 269–83; R. P. Singh and A. G. Schick, “Organi- zational Behavior: Where Does It Fit in Today’s Manage- ment Curriculum?” Journal of Education for Business 82, no. 6 (July 2007): 349–56.
10. P. R. Lawrence and N. Nohria, Driven: How Human Nature Shapes Our Choices (San Francisco: Jossey-Bass, 2002), Ch. 6.
11. OB scholars are currently in a heated debate regarding the field’s relevance to practitioners. See, for example: P. R. Lawrence “Historical Development of Organiza- tional Behavior,” in Handbook of Organizational Behavior, ed. L. W. Lorsch (Englewood Cliffs, NJ: Prentice Hall, 1987), 1-9; S. A. Mohrman, C. B. Gibson, and A. M. Mohrman Jr., “Doing Research That Is Useful to Prac- tice: A Model and Empirical Exploration,” Academy of Management Journal 44 (April 2001): 357–75; J. P. Walsh et al., “On the Relationship between Research and Prac- tice: Debate and Reflections,” Journal of Management Inquiry 16, no. 2 (June 2007): 128–54; F. Vermeulen, “‘I Shall Not Remain Insignificant’: Adding a Second Loop to Matter More,” Academy of Management Journal 50, no. 4 (2007): 754–61; R. Gulati, “Tent Poles, Tribalism, and Boundary Spanning: The Rigor-Relevance Debate in Management Research,” Academy of Management Journal 50, no. 4 (August 2007): 775–82; D. Palmer, B. Dick, and N. Freiburger, “Rigor and Relevance in Organization Studies,” Journal of Management Inquiry 18, no. 4 (De- cember 2009): 265–72; A. Nicolai and D. Seidl, “That’s Relevant! Different Forms of Practical Relevance in Management Science,” Organization Studies 31, no. 9–10 (September 2010): 1257–85. At least one source argues that organizational scholarship is not necessarily relevant to practitioners: M. W. Peng and G. G. Dess, “In the Spirit of Scholarship,” Academy of Management Learning & Education 9, no. 2 (June 2010): 282–98.
12. M. S. Myers, Every Employee a Manager (New York: McGraw-Hill, 1970).
13. B. N. Pfau and I. T. Kay, The Human Capital Edge (New York: McGraw-Hill, 2002); I. S. Fulmer, B. Gerhart, and K. S. Scott, “Are the 100 Best Better? An Empirical In- vestigation of the Relationship between Being a ‘Great Place to Work’ and Firm Performance,” Personnel Psychol- ogy 56, no. 4 (Winter 2003): 965–93; M. A. West et al., “Reducing Patient Mortality in Hospitals: The Role of Human Resource Management,” Journal of Organiza- tional Behavior 27, no. 7 (2006): 983–1002; Y.-H. Ling and B.-S. Jaw, “The Influence of International Human Capital on Global Initiatives and Financial Performance,” International Journal of Human Resource Management 17, no. 3 (2006): 379–98. However, one study warns that
endnotes
CHAPTER 1
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Organization, 2d ed. (Newbury Park, CA: Sage, 1996); A. De Geus, The Living Company (Boston: Harvard Busi- ness School Press, 1997).
20. D. P. Ashmos and G. P. Huber, “The Systems Paradigm in Organization Theory: Correcting the Record and Sug- gesting the Future,” The Academy of Management Review 12, no. 4 (1987): 607–21.
21. N. Tokatli, “Global Sourcing: Insights from the Global Clothing Industry—the Case of Zara, a Fast Fashion Re- tailer,” Journal of Economic Geography 8, no. 1 (January 1, 2008): 21–38; L. Osborne, “High Street Fashion Chain Zara Is Hit by ‘Slave Labour’ Outcry,” Daily Mail (London), 2013, 25; S. R. Levine, “How Zara Took Customer Fo- cus to New Heights,” Credit Union Times(2013): 10; C. Nogueir, “How Inditex Rules the Weaves, and Plans to Carry on Doing So,” El Pais (Madrid, Spain), 24 April 2013; G. Ruddick, “Spain’s Leader in Fast Fashion Has Much to Teach British Store Rivals,” Daily Telegraph (London), 15 March 2013; “The Cult of Zara,” Sunday Independent (Dublin, Ireland), 10 February 2013, 24.
22. Katz and Kahn, The Social Psychology of Organizations; J. McCann, “Organizational Effectiveness: Changing Concepts for Changing Environments,” Human Resource Planning 27, no. 1 (2004): 42–50; A. H. Van de Ven, M. Ganco, and C. R. Hinings, “Returning to the Fron- tier of Contingency Theory of Organizational and Insti- tutional Designs,” Academy of Management Annals 7, no. 1 (2013): 391–438.
23. C. Ostroff and N. Schmitt, “Configurations of Organiza- tional Effectiveness and Efficiency,” Academy of Manage- ment Journal 36, no. 6 (1993): 1345–61.
24. P. S. Adler et al., “Performance Improvement Capability: Keys to Accelerating Performance Improvement in Hos- pitals,” California Management Review 45, no. 2 (2003): 12–33; J. Jamrog, M. Vickers, and D. Bear, “Building and Sustaining a Culture That Supports Innovation,” Human Resource Planning 29, no. 3 (2006): 9–19.
25. K. E. Weick, The Social Psychology of Organizing (Read- ing, MA: Addison-Wesley, 1979); S. Brusoni and A. Prencipe, “Managing Knowledge in Loosely Coupled Networks: Exploring the Links between Product and Knowledge Dynamics,” Journal of Management Studies 38, no. 7 (November 2001): 1019–35.
26. W. C. Bogner and P. Bansal, “Knowledge Management as the Basis of Sustained High Performance,” Journal of Management Studies 44, no. 1 (2007): 165–88; L. Argote and E. Miron-Spektor, “Organizational Learning: From Experience to Knowledge,” Organization Science 22, no. 5 (September/October 2011): 1123–37.
27. T. A. Stewart, Intellectual Capital: The New Wealth of Orga- nizations (New York: Currency/Doubleday, 1997); H. Saint-Onge and D. Wallace, Leveraging Communities of Practice for Strategic Advantage (Boston: Butterworth- Heinemann), 9–10; J.-A. Johannessen, B. Olsen, and J. Olaisen, “Intellectual Capital as a Holistic Management Philosophy: A Theoretical Perspective,” International Jour- nal of Information Management 25, no. 2 (2005): 151–71; L. Striukova, J. Unerman, and J. Guthrie, “Corporate Re- porting of Intellectual Capital: Evidence from UK Compa- nies,” British Accounting Review 40, no. 4 (2008): 297–313.
28. J. Barney, “Firm Resources and Sustained Competitive Ad- vantage,” Journal of Management 17, no. 1 (1991): 99–120.
firm performance seems to predict the presence of OB practices as much as vice versa. See P. M. Wright et al., “The Relationship between HR Practices and Firm Per- formance: Examining Causal Order,” Personnel Psychology 58, no. 2 (2005): 409–46.
14. Deloitte & Touche, Human Capital ROI Study: Creating Shareholder Value through People (Toronto: Deloitte & Touche, 2002); D. Wheeler and J. Thomson, Human Capital Based Investment Criteria for Total Shareholder Re- turns: A Canadian and International Perspective, (Toronto: Schulich School of Business, York University, June 2004); L. Bassi and D. McMurrer, “Maximizing Your Return on People,” Harvard Business Review 85, no. 3 (March 2007): 115–23, 44; A. Mackey, “The Effect of CEOs on Firm Performance,” Strategic Management Journal 29, no. 12 (2008): 1357–67; C. A. O’Reilly et al., “How Leadership Matters: The Effects of Leaders’ Alignment on Strategy Implementation,” The Leadership Quarterly 21, no. 1 (2010): 104–13. For details of recent problems at JCPenney and SNC Lavalin, see: R. Thomson, “Where Ron Johnson Went Wrong at JCPenney,” Retail Week 2013; B. Tuttle, “The 5 Big Mistakes that Led to Ron Johnson’s Ouster at JCPenney,” Time, 9 April 2013; N. Van Praet, “‘Long Journey’ to Turn SNC Around,” National Post (Toronto), 3 May 2013, FP1.
15. “World’s Most Admired Companies,” Fortune, 2013; E. A. Robinson, “America’s Most Admired Companies,” Fortune, 3 March 1997, 68–76; F. Manjoo and J. Caplan, “Apple Nation,” Fast Company, no. 147 (July-August 2010): 69–76.
16. Mohrman, Gibson, and Mohrman, “Doing Research that Is Useful to Practice”; Walsh et al., “On the Relationship between Research and Practice.” Similarly, in 1961, Harvard business professor Fritz Roethlisberger proposed that the field of OB was concerned with human behavior “from the points of view of both (a) its determination . . . and (b) its improvement.” See P. B. Vaill, “F. J. Roethlisberger and the Elusive Phenomena of Organizational Behavior,” Journal of Management Education 31, no. 3 (June 2007): 321–38.
17. R. H. Hall, “Effectiveness Theory and Organizational Ef- fectiveness,” Journal of Applied Behavioral Science 16, no. 4 (October 1980): 536–45; K. Cameron, “Organizational Effectiveness: Its Demise and Re-Emergence through Positive Organizational Scholarship,” in Great Minds in Management, ed. K. G. Smith and M. A. Hitt (New York: Oxford University Press, 2005), 304–30.
18. S. C. Selden and J. E. Sowa, “Testing a Multi-Dimen- sional Model of Organizational Performance: Prospects and Problems,” Journal of Public Administration Research and Theory 14, no. 3 (July 2004): 395–416.
19. Chester Barnard gives one of the earliest descriptions of organizations as systems interacting with external envi- ronments and that are composed of subsystems. See: C. Barnard, The Functions of the Executive (Cambridge, MA: Harvard University Press, 1938), especially Ch. 6. Also see: F. E. Kast and J. E. Rosenzweig, “General Sys- tems Theory: Applications for Organization and Man- agement,” Academy of Management Journal 15, no. 4 (1972): 447–65; P. M. Senge, The Fifth Discipline: The Art and Practice of the Learning Organization (New York: Doubleday Currency, 1990); G. Morgan, Images of
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39. L. Sels et al., “Unravelling the HRM-Performance Link: Value-Creating and Cost-Increasing Effects of Small Business HRM,” Journal of Management Studies 43, no. 2 (2006): 319–42; G. S. Benson, S. M. Young, and E. E. Lawler III, “High-Involvement Work Practices and Analysts’ Forecasts of Corporate Earnings,” Human Resource Management 45, no. 4 (2006): 519–37.
40. M. A. Huselid, “The Impact of Human Resource Man- agement Practices on Turnover, Productivity, and Corpo- rate Financial Performance,” Academy of Management Journal 38, no. 3 (1995): 635–70; B. E. Becker and M. A. Huselid, “Strategic Human Resources Management: Where Do We Go from Here?” Journal of Management 32, no. 6 (December 2006): 898–925; J. Combs et al., “How Much Do High-Performance Work Practices Matter? A Meta-Analysis of Their Effects on Organizational Perfor- mance,” Personnel Psychology 59, no. 3 (2006): 501–28.
41. E. E. Lawler III, S. A. Mohrman, and G. E. Ledford Jr., Strategies for High Performance Organizations (San Francisco: Jossey-Bass, 1998); S. H. Wagner, C. P. Parker, and D. Neil, “Employees that Think and Act Like Owners: Effects of Ownership Beliefs and Behaviors on Organizational Effectiveness,” Personnel Psychology 56, no. 4 (Winter 2003): 847–71; Y. Liu et al., “The Value of Human Resource Management for Organizational Performance,” Business Horizons 50 (2007): 503–11; P. Tharenou, A. M. Saks, and C. Moore, “A Review and Critique of Research on Training and Organizational-Level Outcomes,” Human Resource Management Review 17, no. 3 (2007): 251–73.
42. M. Subramony, “A Meta-Analytic Investigation of the Re- lationship between HRM Bundles and Firm Performance,” Human Resource Management 48, no. 5 (2009): 745–68.
43. E. Frauenheim, “Making the Call for Themselves,” Work- force Management, August 2010, 1; R. Bostelaar, “Call Centres, Unscripted,” Ottawa Citizen, 28 August 2010.
44. L.-Q. Wei and C.-M. Lau, “High Performance Work Systems and Performance: The Role of Adaptive Capabil- ity,” Human Relations 63, no. 10 (2010): 1487–1511; J. Camps and R. Luna-Arocas, “A Matter of Learning: How Human Resources Affect Organizational Perfor- mance,” British Journal of Management 23, no. 1 (2012): 1–21; R. R. Kehoe and P. M. Wright, “The Impact of High-Performance Human Resource Practices on Em- ployees’ Attitudes and Behaviors,” Journal of Management 39, no. 2 (February 1, 2013 2013): 366–91.
45. G. Murray et al., eds., Work and Employment Relations in the High-Performance Workplace (London: Continuum, 2002); B. Harley, “Hope or Hype? High Performance Work Systems,” in Participation and Democracy at Work: Essays in Honour of Harvie Ramsay, ed. B. Harley, J. Hyman, and P. Thompson (Houndsmills, UK: Palgrave Macmillan, 2005), 38–54.
46. J. Tullberg, “Stakeholder Theory: Some Revisionist Suggestions,” Journal of Socio-Economics 42(2013): 127–135.
47. C. Eden and F. Ackerman, Making Strategy: The Journey of Strategic Management (London: Sage, 1998).
48. A. L. Friedman and S. Miles, Stakeholders: Theory and Practice (New York: Oxford University Press, 2006);
29. J. P. Hausknecht and J. A. Holwerda, “When Does Em- ployee Turnover Matter? Dynamic Member Configura- tions, Productive Capacity, and Collective Performance,” Organization Science 24, no. 1 (January 1, 2013): 210–25.
30. S.-C. Kang and S. A. Snell, “Intellectual Capital Archi- tectures and Ambidextrous Learning: A Framework for Human Resource Management,” Journal of Management Studies 46, no. 1 (2009): 65–92; L.-C. Hsu and C.-H. Wang, “Clarifying the Effect of Intellectual Capital on Performance: The Mediating Role of Dynamic Capabil- ity,” British Journal of Management (2011): 179–205.
31. Some organizational learning researchers use the label “social capital” instead of relationship capital. Social capi- tal is discussed later in this book as the goodwill and re- sulting resources shared among members in a social network. The two concepts may be identical (as those writers suggest). However, we continue to use “relation- ship capital” for intellectual capital, because social capital typically refers to individual relationships, whereas rela- tionship capital also includes value not explicit in social capital, such as the organization’s goodwill and brand value.
32. G. Huber, “Organizational Learning: The Contributing Processes and Literature,” Organizational Science 2 (1991): 88–115; D. A. Garvin, Learning in Action: A Guide to Put- ting the Learning Organization to Work (Boston: Harvard Business School Press, 2000); H. Shipton, “Cohesion or Confusion? Towards a Typology for Organizational Learn- ing Research,” International Journal of Management Reviews 8, no. 4 (2006): 233–52; D. Jiménez-Jiménez and J. G. Cegarra-Navarro, “The Performance Effect of Organiza- tional Learning and Market Orientation,” Industrial Mar- keting Management 36, no. 6 (2007): 694–708. One recent study suggests that these organizational learning processes aren’t always beneficial, because they may be more costly or burdensome than the value they create. See: S. S. Levine and M. J. Prietula, “How Knowledge Transfer Impacts Perfor- mance: A Multilevel Model of Benefits and Liabilities,” Orga- nization Science 23, no. 6 (November 1, 2012): 1748–66.
33. M. Weinstein, “Service with a Smile,” Training, 3 April 2013.
34. B. van den Hooff and M. Huysman, “Managing Knowl- edge Sharing: Emergent and Engineering Approaches,” Information & Management 46, no. 1 (2009): 1–8. The BHP Billiton example is reported in L. Forrestal, “Lollies Aside, BHP Is Sweet with Its Edict,” Australian Financial Review, 2 August 2012.
35. M. N. Wexler, “Organizational Memory and Intellectual Capital,” Journal of Intellectual Capital 3, no. 4 (2002): 393–414; M. Fiedler and I. Welpe, “How Do Organiza- tions Remember? The Influence of Organizational Struc- ture on Organizational Memory,” Organization Studies 31, no. 4 (April 1, 2010): 381–407.
36. “A Cornerstone for Learning,” T&D, October 2008, 66–89. 37. “Jim Goodnight, Chief Executive Officer, SAS,” (Cary,
NC, 2011), http://www.sas.com/company/about/bios/ jgoodnight.html.
38. M. E. McGill and J. W. Slocum Jr., “Unlearn the Organi- zation,” Organizational Dynamics 22, no. 2 (1993): 67–79; A. E. Akgün, G. S. Lynn, and J. C. Byrne, “Anteced- ents and Consequences of Unlearning in New Product
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M. Milstein, “Creating Sustainable Value,” Academy of Management Executive 17, no. 2 (2003): 56–69.
58. “MTN Plants 5,800 Trees in 21 Days of Y’ello Care,” Spy Ghana, 10 June 201; “MTN Begins 21 Days of Yellow Care Campaign to Support Children,” All Africa, 13 June 201; MTN Group Limited, Welcome to the New World: MTN Group Limited Sustainability Report for the Year Ended 31 December 2012 (Fairlands, South Africa: MTN Group, 24 April 2013).
59. M. Friedman, Capitalism and Freedom, 40th anniversary ed. (Chicago: University of Chicago Press, 2002); N. Vorster, “An Ethical Critique of Milton Friedman’s Doctrine on Economics and Freedom,” Journal for the Study of Religions and Ideologies 9, no. 26 (Summer 2010): 163–88.
60. A. B. Carroll and K. M. Shabana, “The Business Case for Corporate Social Responsibility: A Review of Concepts, Research and Practice,” International Journal of Manage- ment Reviews 12, no. 1 (2010): 85–105; H. Aguinis and A. Glavas, “What We Know and Don’t Know About Corporate Social Responsibility: A Review and Research Agenda,” Journal of Management 38, no. 4 (July 1, 2012): 932–68.
61. M. Johne, “Show Us the Green, Workers Say,” Globe & Mail, 10 October 2007, C1.
62. W. Immen, “On the Move for Work,” Globe & Mail, 15 May 2010, B16.
63. S. Fischer, “Globalization and Its Challenges,” American Economic Review (May 2003): 1–29. For discussion of the diverse meanings of globalization, see M. F. Guillén, “Is Globalization Civilizing, Destructive or Feeble? A Critique of Five Key Debates in the Social Science Literature,” Annual Review of Sociology 27 (2001): 235–260.
64. The ongoing debate regarding the advantages and disad- vantages of globalization are discussed in Guillén, “Is Glo- balization Civilizing, Destructive or Feeble?,” J. Bhagwati, In Defense of Globalization (New York: Oxford University Press, 2004); M. Wolf, Why Globalization Works (New Haven, CT: Yale University Press, 2004).
65. K. Ohmae, The Next Global Stage (Philadelphia: Whar- ton School Publishing, 2005).
66. “Working Mother Magazine Ranks Verizon among the Best Companies for Multicultural Women,” PR Newswire, news release (26 May 2011); “Verizon Communications: No. 47 in the Diversityinc Top 50,” DiversityInc (2013).
67. “Japan Real Time: Dear Successful Female Foreign CEO, Hitachi,” Dow Jones International News, 27 April 2012.
68. M. F. Riche, “America’s Diversity and Growth: Signposts for the 21st Century,” Population Bulletin (June 2000): 3–43; U.S. Census Bureau, Statistical Abstract of the United States: 2004–2005 (Washington: U.S. Census Bu- reau, May 2005).
69. D. A. Harrison et al., “Time, Teams, and Task Perfor- mance: Changing Effects of Surface- and Deep-Level Diversity on Group Functioning,” Academy of Manage- ment Journal 45, no. 5 (2002): 1029–46.
70. R. Zemke, C. Raines, and B. Filipczak, Generations at Work: Managing the Clash of Veterans, Boomers, Xers, and Nexters in Your Workplace (New York: Amacom, 2000); N. Howe and W. Strauss, “The Next 20 Years: How Cus- tomer and Workforce Attitudes Will Evolve,” Harvard Business Review (July-August 2007): 41–52.
M. L. Barnett, “Stakeholder Influence Capacity and the Variability of Financial Returns to Corporate Social Re- sponsibility,” Academy of Management Review 32, no. 3 (2007): 794–816; R. E. Freeman, J. S. Harrison, and A. C. Wicks, Managing for Stakeholders: Survival, Reputation, and Success (New Haven, CT: Yale University Press, 2007).
49. G. R. Salancik and J. Pfeffer, The External Control of Or- ganizations: A Resource Dependence Perspective (New York: Harper & Row, 1978); N. Roome and F. Wijen, “Stake- holder Power and Organizational Learning in Corporate Environmental Management,” Organization Studies 27, no. 2 (2005): 235–63; R. B. Adams, A. N. Licht, and L. Sagiv, “Shareholders and Stakeholders: How Do Di- rectors Decide?” Strategic Management Journal 32, no. 12 (2011): 1331–55; A. Santana, “Three Elements of Stake- holder Legitimacy,” Journal of Business Ethics 105, no. 2 (2012): 257–65.
50. R. E. Freeman, A. C. Wicks, and B. Parmar, “Stakeholder Theory and ‘the Corporate Objective Revisited’,” Organi- zation Science 15, no. 3 (May-June 2004): 364–69; B. R. Agle et al., “Dialogue: Toward Superior Stakeholder Theory,” Business Ethics Quarterly 18, no. 2 (2008): 153–90; B. L. Parmar et al., “Stakeholder Theory: The State of the Art,” Academy of Management Annals 4, no. 1 (2010): 403–45.
51. B. M. Meglino and E. C. Ravlin, “Individual Values in Organizations: Concepts, Controversies, and Research,” Journal of Management 24, no. 3 (1998): 351–89; A. Bardi and S. H. Schwartz, “Values and Behavior: Strength and Structure of Relations,” Personality and Social Psychology Bulletin 29, no. 10 (October 2003): 1207–20; S. Hitlin and J. A. Pilavin, “Values: Reviving a Dormant Concept,” Annual Review of Sociology 30 (2004): 359–93.
52. Some popular books that emphasize the importance of personal and organizational values include: J. C. Collins and J. I. Porras, Built to Last: Successful Habits of Visionary Companies (London: Century, 1995); C. A. O’Reilly III and J. Pfeffer, Hidden Value (Cambridge, MA: Harvard Business School Press, 2000); R. Barrett, Building a Values-Driven Organization: A Whole System Approach to Cultural Transformation (Burlington, MA: Butterworth- Heinemann, 2006); R. Tocquigny and A. Butcher, When Core Values Are Strategic (Upper Saddle River, NJ: FT Press, 2012).
53. V. Jayne, “Power Plays—Who Wins in the NZ Energy Game?,” New Zealand Management, 1 April 2012, 24.
54. Aspen Institute, Where Will They Lead? MBA Student At- titudes About Business & Society, (Washington, DC: Aspen Institute, April 2008).
55. M. van Marrewijk, “Concepts and Definitions of CSR and Corporate Sustainability: Between Agency and Commu- nion,” Journal of Business Ethics 44 (May 2003): 95–105; Barnett, “Stakeholder Influence Capacity and the Variabil- ity of Financial Returns to Corporate Social Responsibility.”
56. L. S. Paine, Value Shift (New York: McGraw-Hill, 2003); A. Mackey, T. B. Mackey, and J. B. Barney, “Corporate Social Responsibility and Firm Performance: Investor Preferences and Corporate Strategies,” Academy of Man- agement Review 32, no. 3 (2007): 817–35.
57. S. Zadek, The Civil Corporation: The New Economy of Cor- porate Citizenship (London: Earthscan, 2001); S. Hart and
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Dreu, and A. C. Homan, “Work Group Diversity and Group Performance: An Integrative Model and Research Agenda,” Journal of Applied Psychology 89, no. 6 (2004): 1008–22; E. Molleman, “Diversity in Demographic Characteristics, Abilities and Personality Traits: Do Fault- lines Affect Team Functioning?,” Group Decision and Ne- gotiation 14, no. 3 (2005): 173–93.
80. E. D. Y. Greenblatt, “Work/Life Balance: Wisdom or Whining,” Organizational Dynamics 31, no. 2 (2002): 177–93; W. G. Bennis and R. J. Thomas, Geeks and Geezers (Boston: Harvard Business School Press, 2002), 74–79.
81. Regus, A Better Balance (Luxembourg: Regus, May 2012). 82. T. L. Johns, “The Third Wave of Virtual Work,” Harvard
Business Review 91, no. 1 (January-February 2013): 66–73. 83. WorldatWork, Telework Trendlines 2009 (Scottsdale, AZ:
WorldatWork, February 2009); J. Tattrie, “Half of Canadi- ans Want to Telecommute,” Metro (Toronto), 26 October 2010; E. Corkill, “Teleworking: Home Sweet . . . Office,” Japan Times, 30 September 201; “Telework and the Fed- eral Government,” The Wall Street Journal, 11 April 2013.
84. E. J. Hill et al., “Workplace Flexibility, Work Hours, and Work-Life Conflict: Finding an Extra Day or Two,” Jour- nal of Family Psychology 24, no. 3 (June 2010): 349–58; A. Bourhis and R. Mekkaoui, “Beyond Work-Family Bal- ance: Are Family-Friendly Organizations More Attrac- tive?” Relations Industrielles/Industrial Relations 65, no. 1 (Winter 2010): 98–117.
85. “Increased Productivity Due to Telecommuting Gener- ates an Estimated $277 Million in Annual Savings for Company,” Cisco Systems, news release (San Jose, CA: 25 June 2009); “Rep. Sarbane’s Telework Improvements Act Passes House,” news release (Washington, DC: 15 July 2010); D. Meinert, “Make Telecommuting Pay Off,” HRMagazine, June 2011, 33.
86. Meinert, “Make Telecommuting Pay Off.” Deloitte’s tele- work program, part of its mass career customization ini- tiative, is described by C. Benko and M. Anderson, The Corporate Lattice: Achieving High Performance in the Changing World of Work (Boston: Harvard Business School Press, 2010).
87. J. Bednar, “Beyond the 9-to-5,” BusinessWest, 15 Febru- ary 2010, 18.
88. D. E. Bailey and N. B. Kurland, “A Review of Telework Research: Findings, New Directions, and Lessons for the Study of Modern Work,” Journal of Organizational Behavior 23 (2002): 383–400; D. W. McCloskey and M. Igbaria, “Does ‘Out of Sight’ Mean ‘Out of Mind’? An Empirical Investigation of the Career Advancement Prospects of Telecommuters,” Information Resources Man- agement Journal 16 (April-June 2003): 19–34.
89. Most of these anchors are mentioned in J. D. Thompson, “On Building an Administrative Science,” Administrative Science Quarterly 1, no. 1 (1956): 102–11.
90. This anchor has a colorful history dating back to cri- tiques of business schools in the 1950s. Soon after, sys- tematic research became a mantra by many respected scholars. See, for example: Thompson, “On Building an Administrative Science.”
91. J. Pfeffer and R. I. Sutton, Hard Facts, Dangerous Half- Truths, and Total Nonsense (Boston: Harvard Business School Press, 2006); D. M. Rousseau and S. McCarthy,
71. U.S. Bureau of Labor Statistics, Household Data, Annual Averages: Employment Status of the Civilian Noninstitu- tional Population by Age, Sex, and Race (Washington, DC: U.S. Bureau of Labor Statistics, 2010).
72. E. Parry and P. Urwin, “Generational Differences in Work Values: A Review of Theory and Evidence,” International Journal of Management Reviews 13 (2011): 79–96.
73. E. Ng, L. Schweitzer, and S. Lyons, “New Generation, Great Expectations: A Field Study of the Millennial Gen- eration,” Journal of Business and Psychology 25, no. 2 (2010): 281–292.
74. M. Wong et al., “Generational Differences in Personality and Motivation,” Journal of Managerial Psychology 23, no. 8 (2008): 878–90; J. M. Twenge and S. M. Campbell, “Generational Differences in Psychological Traits and Their Impact on the Workplace,” Journal of Managerial Psychology 23, no. 8 (2008): 862–77; J. Twenge, “A Re- view of the Empirical Evidence on Generational Differ- ences in Work Attitudes,” Journal of Business and Psychology 25, no. 2 (2010): 201–10; B. Kowske, R. Rasch, and J. Wiley, “Millennials’ (Lack of ) Attitude Problem: An Empirical Examination of Generational Ef- fects on Work Attitudes,” Journal of Business and Psychol- ogy 25, no. 2 (2010): 265–79; J. Deal, D. Altman, and S. Rogelberg, “Millennials at Work: What We Know and What We Need to Do (If Anything),” Journal of Business and Psychology 25, no. 2 (2010): 191–99.
75. J. M. Twenge et al., “Generational Differences in Work Values: Leisure and Extrinsic Values Increasing, Social and Intrinsic Values Decreasing,” Journal of Management 36, no. 5 (September 2010): 1117–1142. Another temporal cohort study also reported an increasing preference for leisure, but these differences were not significant. See: J. Meriac, D. Woehr, and C. Banister, “Generational Dif- ferences in Work Ethic: An Examination of Measurement Equivalence across Three Cohorts,” Journal of Business and Psychology 25, no. 2 (2010): 315–324.
76. T. Kochan et al., “The Effects of Diversity on Business Performance: Report of the Diversity Research Network,” Human Resource Management 42 (2003): 3–21; R. J. Burke and E. Ng, “The Changing Nature of Work and Organizations: Implications for Human Resource Man- agement,” Human Resource Management Review 16 (2006): 86–94; M.-E. Roberge and R. van Dick, “Recog- nizing the Benefits of Diversity: When and How Does Diversity Increase Group Performance?” Human Resource Management Review 20, no. 4 (2010): 295–308.
77. D. Porras, D. Psihountas, and M. Griswold, “The Long- Term Performance of Diverse Firms,” International Jour- nal of of Diversity 6, no. 1 (2006): 25–34; R. A. Weigand, “Organizational Diversity, Profits and Returns in U.S. Firms,” Problems & Perspectives in Management, no. 3 (2007): 69–83.
78. “Working Mother Magazine Ranks Verizon among the Best Companies.”
79. Kochan et al., “The Effects of Diversity on Business Per- formance”; D. van Knippenberg and S. A. Haslam, “Re- alizing the Diversity Dividend: Exploring the Subtle Interplay between Identity, Ideology and Reality,” in So- cial Identity at Work: Developing Theory for Organizational Practice, ed. S. A. Haslam et al. (New York: Taylor and Francis, 2003), 61–80; D. van Knippenberg, C. K. W. De
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A. Mitchell, Lean Thinking for the NHS (London: NHS Confederation, 2006); “Nissan ‘Shot in the Arm’ for Healthcare Sector,” Newcarinfo.co.uk, 13 February 2007; I. Green, “Drive for Success,” Nursing Standard 21, no. 38 (30 May 2007): 62–63; A.-M. Kelly et al., “Improving Emergency Department Efficiency by “Patient Streaming to Outcomes-Based Teams,” Australian Health Review 31, no. 1 (2007): 16–21.
CHAPTER 2
1. M. Fletcher, “Iceland Banks on Disney Magic to Rub Off,” Conference and Incentive Travel (2009): 20–21; A. Duff, “Cool Operator,” Director 2010, 44–48; “An ‘on Fire’ Iceland Moves up to Become a New Hot Favourite,” Sunday Times, 4 March 2012, 11; J. Halliwell, “Iceland CEO Malcolm Walker: Walking Back to Happiness,” The Grocer, 4 August 2012, 43–44; A. Lawson, “Iceland: Success in a Cold Climate,” Retail Week, 24 February 2012; “A Winning Warmth,” Sunday Times, 4 March 2012, 1; C. Kelsey, “Iceland Moves Back into the Inter- net Shopping Market,” Western Mail, 8 May 2013, 12; “A Great Place to Work,” Iceland Foods Group.
2. L. L. Thurstone, “Ability, Motivation, and Speed,” Psy- chometrika 2, no. 4 (1937): 249–54; N. R. F. Maier, Psy- chology in Industry, 2nd ed. (Boston: Houghton Mifflin Company, 1955); V. H. Vroom, Work and Motivation (New York: John Wiley & Sons, 1964); J. P. Campbell et al., Managerial Behavior, Performance, and Effectiveness (New York: McGraw-Hill, 1970).
3. U.-C. Klehe and N. Anderson, “Working Hard and Working Smart: Motivation and Ability During Typical and Maximum Performance,” Journal of Applied Psychol- ogy 92, no. 4 (2007): 978–92; J. S. Gould-Williams and M. Gatenby, “The Effects of Organizational Context and Teamworking Activities on Performance Outcomes—a Study Conducted in England Local Government,” Public Management Review 12, no. 6 (2010): 759–87.
4. E. E. I. Lawler and L. W. Porter, “Antecedent Attitudes of Effective Managerial Performance,” Organizational Be- havior and Human Performance 2(1967): 122–42; M. A. Griffin, A. Neal, and S. K. Parker, “A New Model of Work Role Performance: Positive Behavior in Uncertain and Interdependent Contexts,” Academy of Management Journal 50, no. 2 (2007): 327–47.
5. Only a few sources have included all four factors. These include J. P. Campbell and R. D. Pritchard, “Motivation Theory in Industrial and Organizational Psychology,” in Handbook of Industrial and Organizational Psychology, ed. M. D. Dunnette (Chicago: Rand McNally, 1976), 62–130; T. R. Mitchell, “Motivation: New Directions for Theory, Research, and Practice,” Academy of Management review 7, no. 1 (1982): 80–88; G. A. J. Churchill et al., “The Determinants of Salesperson Performance: A Meta-Analysis,” Journal of Marketing Research (JMR) 22, no. 2 (1985): 103–18; R. E. Plank and D. A. Reid, “The Mediating Role of Sales Behaviors: An Alternative Per- spective of Sales Performance and Effectiveness,” Journal of Personal Selling & Sales Management 14, no. 3 (1994): 43–56. The MARS acronym was coined by senior officers in the Singapore armed forces. Chris Perryer at the Uni- versity of Western Australia suggests the full model should be called the “MARS BAR” because the outcomes might be labeled “behavior and results”!
“Educating Managers from an Evidence-Based Perspec- tive,” Academy of Management Learning & Education 6, no. 1 (2007): 84–101; R. B. Briner and D. M. Rousseau, “Evidence-Based I–O Psychology: Not There Yet,” Indus- trial and Organizational Psychology 4, no. 1 (2011): 3–22.
92. J. M. Bartunek, “Evidence-Based Approaches in I–O Psy- chology Should Address Worse Grumbles,” Industrial and Organizational Psychology 4, no. 1 (2011): 72–75; M. J. Burke, “Is There a Fly in the “Systematic Review” Oint- ment?” Industrial and Organizational Psychology 4, no. 1 (2011): 36–39; M. A. Cronin and R. Klimoski, “Broaden- ing the View of What Constitutes ‘Evidence’,” Industrial and Organizational Psychology 4, no. 1 (2011): 57–61.
93. S. L. Rynes, T. L. Giluk, and K. G. Brown, “The Very Separate Worlds of Academic and Practitioner Periodicals in Human Resource Management: Implications for Evidence-Based Management,” Academy of Management Journal 50, no. 5 (October 2007): 987–1008; D. J. Cohen, “The Very Separate Worlds of Academic and Practitioner Publications in Human Resource Manage- ment: Reasons for the Divide and Concrete Solutions for Bridging the Gap,” Academy of Management Journal 50, no. 5 (October 2007): 1013–19; E. E. Lawler, “Why HR Practices Are Not Evidence-Based,” Academy of Manage- ment Journal 50, no. 5 (October 2007): 1033–36.
94. J. Greenberg and E. C. Tomlinson, “Situated Experi- ments in Organizations: Transplanting the Lab to the Field,” Journal of Management 30, no. 5 (2004): 703–24.
95. Pfeffer and Sutton, Hard Facts, Dangerous Half-Truths, and Total Nonsense.
96. M. N. Zald, “More Fragmentation? Unfinished Business in Linking the Social Sciences and the Humanities,” Administrative Science Quarterly 41 (1996): 251–61; C. Heath and S. B. Sitkin, “Big-B Versus Big-O: What Is Organizational About Organizational Behavior?” Journal of Organizational Behavior 22 (2001): 43–58; C. Oswick, P. Fleming, and G. Hanlon, “From Borrowing to Blend- ing: Rethinking the Processes of Organizational Theory Building,” Academy of Management Review 36, no. 2 (Apr 2011): 318–37.
97. D. M. Rousseau and Y. Fried, “Location, Location, Loca- tion: Contextualizing Organizational Research,” Journal of Organizational Behavior 22, no. 1 (2001): 1–13; C. M. Christensen and M. E. Raynor, “Why Hard-Nosed Exec- utives Should Care About Management Theory,” Harvard Business Review (September 2003): 66–74. For excellent critique of the “one best way” approach in early manage- ment scholarship, see P. F. Drucker, “Management’s New Paradigms,” Forbes (October 5 1998): 152–177.
98. H. L. Tosi and J. W. Slocum Jr., “Contingency Theory: Some Suggested Directions,” Journal of Management 10 (1984): 9–26.
99. D. M. Rousseau, “Meso Organizational Behavior: Avoid- ing Three Fundamental Biases,” in Trends in Organiza- tional Behavior, ed. C. L. Cooper and D. M. Rousseau (Chichester, UK: John Wiley & Sons, 1994), 13–30.
100. M. McCarthy, “Can Car Manufacturing Techniques Reform Health Care,” Lancet 367, no. 9507 (28 January 2006): 290–91; “NHS Chief Vows to Cut Waste and Look to Toyota in Efficiency Drive,” NHS Federation, news release, (London, 14 June 2006); D. Jones and
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Performance: Implications for Staffing, Motivation, and Development ed. D. R. Ilgen and E. D. Pulakos (San Francisco: Jossey-Bass, 1999), 399–429; R.D. Hackett, “Understanding and Predicting Work Performance in the Canadian Military,” Canadian Journal of Behavioural Science 34, no. 2 (2002): 131–40.
17. L. Tay, R. Su, and J. Rounds, “People-Things and Data-Ideas: Bipolar Dimensions?” Journal of Counseling Psychology 58, no. 3 (2011): 424–40.
18. Griffin, Neal, and Parker, “A New Model of Work Role Performance”; A. Charbonnier-Voirin and P. Roussel, “Adaptive Performance: A New Scale to Measure Individ- ual Performance in Organizations,” Canadian Journal of Administrative Sciences 29, no. 3 (2012): 280–93.
19. D. W. Organ, “Organizational Citizenship Behavior: It’s Construct Clean-up Time,” Human Performance 10(1997): 85–97; J. A. LePine, A. Erez, and D. E. Johnson, “The Nature and Dimensionality of Organizational Citi- zenship Behavior: A Critical Review and Meta-Analysis,” Journal of Applied Psychology 87(2002): 52–65; M. C. Bolino, J. Harvey, and D. G. Bachrach, “A Self-Regulation Approach to Understanding Citizenship Behavior in Organizations,” Organizational Behavior and Human Decision Processes 119, no. 1 (2012): 126–39.
20. K. Lee and N. J. Allen, “Organizational Citizenship Be- havior and Workplace Deviance: The Role of Affect and Cognitions,” Journal of Applied Psychology 87, no. 1 (2002): 131–42.
21. E. W. Morrison, “Role Definitions and Organizational Citizenship Behavior: The Importance of the Employee’s Perspective,” Academy of Management Journal 37, no. 6 (1994): 1543–67; E. Vigoda-Gadot, “Compulsory Citi- zenship Behavior: Theorizing Some Dark Sides of the Good Soldier Syndrome in Organizations,” Journal for the Theory of Social Behaviour 36, no. 1 (2006): 77–93; M. C. Bolino et al., “Exploring the Dark Side of Organi- zational Citizenship Behavior,” Journal of Organizational Behavior 34, no. 4 (2013): 542–59.
22. M. Ozer, “A Moderated Mediation Model of the Rela- tionship between Organizational Citizenship Behaviors and Job Performance,” Journal of Applied Psychology 96, no. 6 (2011): 1328–36; T.M. Nielsen et al., “Utility of OCB: Organizational Citizenship Behavior and Group Performance in a Resource Allocation Framework,” Jour- nal of Management 38, no. 2 (2012): 668–94.
23. A. C. Klotz and M. C. Bolino, “Citizenship and Coun- terproductive Work Behavior: A Moral Licensing View,” Academy of Management Review 38, no. 2 (2013): 292–306; Bolino et al., “Exploring the Dark Side of Organizational Citizenship Behavior.”
24. M. Rotundo and P. Sackett, “The Relative Importance of Task, Citizenship, and Counterproductive Performance to Global Ratings of Job Performance: A Policy-Capturing Approach,” Journal of Applied Psychology 87(2002): 66–80; P. D. Dunlop and K. Lee, “Workplace Deviance, Organizational Citizenship Behaviour, and Business Unit Performance: The Bad Apples Do Spoil the Whole Barrel,” Journal of Organizational Behavior 25(2004): 67–80; R. S. Dalal, “A Meta-Analysis of the Relationship between Organizational Citizenship Behavior and Counterpro- ductive Work Behavior,” Journal of Applied Psychology 90, no. 6 (2005): 1241–55; N. A. Bowling and M. L. Gruys,
6. Technically, the model proposes that situational factors moderate the effects of the three within-person factors. For example, the effect of employee motivation on behavior and performance depends on (is moderated by) the situation.
7. C. C. Pinder, Work Motivation in Organizational Behavior (Upper Saddle River, NJ: Prentice-Hall, 1998); G. P. Latham and C. C. Pinder, “Work Motivation Theory and Research at the Dawn of the Twenty-First Century,” Annual Review of Psychology 56(2005): 485–516.
8. L. M. Spencer and S. M. Spencer, Competence at Work: Models for Superior Performance (New York: Wiley, 1993); R. Kurz and D. Bartram, “Competency and Individual Performance: Modelling the World of Work,” in Organi- zational Effectiveness: The Role of Psychology, ed. I.T. Robertson, M. Callinan, and D. Bartram (Chichester, UK: John Wiley & Sons, 2002), 227–58; D. Bartram, “The Great Eight Competencies: A Criterion-Centric Approach to Validation,” Journal of Applied Psychology 90, no. 6 (2005): 1185–203; H. Heinsman et al., “Compe- tencies through the Eyes of Psychologists: A Closer Look at Assessing Competencies,” International Journal of Selec- tion and Assessment 15, no. 4 (2007): 412–27.
9. C. Wolff, “Waldorf Astoria Plants a Flag in Shanghai,” Lodging Hospitality, 3 October 2011; “Hilton Worldwide Voted Best Employer in China’s Hospitality Industry,” ed. Hilton Worldwide (Shanghai: PR Newswire, 2012).
10. P. Tharenou, A. M. Saks, and C. Moore, “A Review and Critique of Research on Training and Organizational-Level Outcomes,” Human Resource Management Review 17, no. 3 (2007): 251–73; T. W. H. Ng and D. C. Feldman, “How Broadly Does Education Contribute to Job Perfor- mance?,” Personnal Psychology 62, no. 1 (2009): 89–134.
11. J. N. Roy, “The Great 2012 Talent Migration,” Talent Management, 4 May 2012. Based on interviews with 1, 143 employed U.S. adults in September 2011.
12. “Canadian Organizations Must Work Harder to Produc- tively Engage Employees,” ed. Watson Wyatt Canada (Toronto 2005); BlessingWhite, “Employee Engagement Report 2011,” (Princeton, NJ: BlessingWhite, 2011).
13. W. H. Cooper and M. J. Withey, “The Strong Situation Hypothesis,” Personality and Social Psychology Review 13, no. 1 (2009): 62–72; D. C. Funder, “Persons, Behaviors and Situations: An Agenda for Personality Psychology in the Postwar Era,” Journal of Research in Personality 43, no. 2 (2009): 120–26; R. D. Meyer, R. S. Dalal, and R. Hermida, “A Review and Synthesis of Situational Strength in the Organizational Sciences,” Journal of Management 36, no. 1 (2010): 121–40; R. A. Sherman, C. S. Nave, and D. C. Funder, “Situational Similarity and Personality Predict Behavioral Consistency,” Journal of Personality and Social Psychology 99, no. 2 (2010): 330–43.
14. K. F. Kane, “Special Issue: Situational Constraints and Work Performance,” Human Resource Management Review 3(1993): 83–175; S. B. Bacharach and P. Bamberger, “Be- yond Situational Constraints: Job Resources Inadequacy and Individual Performance at Work,” 5, no. 2 (1995): 79–102; G. Johns, “Commentary: In Praise of Context,” Journal of Organizational Behavior 22(2001): 31–42.
15. Meyer, Dalal, and Hermida, “A Review and Synthesis of Situational Strength in the Organizational Sciences.”
16. J. P. Campbell, “The Definition and Measurement of Per- formance in the New Age,” in The Changing Nature of
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78. For a recent analysis of these predictors of ethical con- duct, see J. J. Kish-Gephart, D. A. Harrison, and L. K. Treviño, “Bad Apples, Bad Cases, and Bad Barrels: Meta-Analytic Evidence About Sources of Unethical Decisions at Work,” Journal of Applied Psychology 95, no. 1 (2010): 1–31.
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80. K. Weaver, J. Morse, and C. Mitcham, “Ethical Sensitiv- ity in Professional Practice: Concept Analysis,” Journal of Advanced Nursing 62, no. 5 (2008): 607–18; L. J. T. Pedersen, “See No Evil: Moral Sensitivity in the Formula- tion of Business Problems,” Business Ethics: A European Review 18, no. 4 (2009): 335–48. According to one re- cent neuroscience study, the emotional aspect of moral sensitivity declines and the cognitive aspect increases between early childhood and young adulthood. See:
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Hofstede’s Cultural Value Dimensions,” Journal of Ap- plied Psychology 95, no. 3 (2010): 405–39.
103. M. Adams, “New Canadians, Old Values?” Globe & Mail, 2 March 2005, A17.
104. Oyserman, Coon, and Kemmelmeier, “Rethinking Indi- vidualism and Collectivism.” However, a recent meta- analysis found only minor differences across ethnic groups. See Vargas and Kemmelmeier, “Ethnicity and Contempo- rary American Culture: A Meta-Analytic Investigation of Horizontal–Vertical Individualism–Collectivism.”
105. J. A. Vandello and D. Cohen, “Patterns of Individualism and Collectivism across the United States,” Journal of Per- sonality and Social Psychology 77, no. 2 (1999): 279–92.
106. V. C. Plaut, H. Rose Markus, and M. E. Lachman, “Place Matters: Consensual Features and Regional Varia- tion in American Well-Being and Self,” 83, no. 1 (2002): 160–84; P. J. Rentfrow, “Statewide Differences in Person- ality: Toward a Psychological Geography of the United States,” American Psychologist 65, no. 6 (2010): 548–58; S. Kitayama et al., “Ethos of Independence across Re- gions in the United States: The Production-Adoption Model of Cultural Change,” 559–74; J. Lieske, “The Changing Regional Subcultures of the American States and the Utility of a New Cultural Measure,” Political Re- search Quarterly 63, no. 3 (2010): 538–52.
107. D. S. Berry, G. M. Jones, and S. A. Kuczaj, “Differing States of Mind: Regional Affiliation, Personality Judg- ment, and Self-View,” Basic and Applied Social Psychology 22, no. 1 (2000): 43–56; K. H. Rogers and D. Wood, “Accuracy of United States Regional Personality Stereo- types,” Journal of Research in Personality 44, no. 6 (2010): 704–13.
108. Rentfrow, “Statewide Differences in Personality”; Lieske, “The Changing Regional Subcultures of the American States and the Utility of a New Cultural Measure.”
CHAPTER 3
1. City of Calgary and Calgary Fire Fighters Association, Inter- national Association of Fire Fighters, Local255, with Respect to a Grievance by Charles Hendricks, 47218 Canadian Le- gal Information Institute (2012); J. Perron-Clow, “Young Women Urged to Pursue a Career in Firefighting,” Orleans Star (Ontario), 11 May 2011; K. Chen, “Camp Ffit Lets Teenage Girls Experience the Life of a Firefighter,” Ottawa Citizen, 15 August 2012, C5; V. M. Cruz, “Camp Fury Gives Girl Scouts a Look at What It Takes to Be a Firefighter,” Arizona Daily Star, 8 June 2012; S. Ptashkin, “Camp Fury Gives Girl Scouts inside Look at Fire and Police Training,” NBC News, 31 May 2013.
2. K. Morgan, “Camp Houston Fire,” Houston Chronicle, 7 March 2010, 1.
3. D. Cooper and S. M. B. Thatcher, “Identification in Or- ganizations: The Role of Self-Concept Orientations and Identification Motives,” Academy of Management Review 35, no. 4 (2010): 516–38; J. Schaubroeck, Y. J. Kim, and A. C. Peng, “The Self-Concept in Organizational Psy- chology: Clarifying and Differentiating the Constructs,” in International Review of Industrial and Organizational Psychology (New York: John Wiley & Sons, 2012), 1–38.
4. L. Gaertner et al., “A Motivational Hierarchy Within: Primacy of the Individual Self, Relational Self, or Collec- tive Self?” Journal of Experimental Social Psychology 48,
93. F. S. Niles, “Individualism-Collectivism Revisited,” Cross-Cultural Research 32(1998): 315–41; C. P. Earley and C. B. Gibson, “Taking Stock in Our Progress on Individualism-Collectivism: 100 Years of Solidarity and Community,” Journal of Management 24(1998): 265–304; C. L. Jackson et al., “Psychological Collectiv- ism: A Measurement Validation and Linkage to Group Member Performance,” Journal of Applied Psychology 91, no. 4 (2006): 884–99.
94. Oyserman, Coon, and Kemmelmeier, “Rethinking Indi- vidualism and Collectivism.”Also see F. Li and L. Aksoy, “Dimensionality of Individualism–Collectivism and Measurement Equivalence of Triandis and Gelfand’s Scale,” Journal of Business and Psychology 21, no. 3 (2007): 313–29. The “vertical-horizontal” distinction does not account for the lack of correlation between individualism and collectivism. See J. H. Vargas and M. Kemmelmeier, “Ethnicity and Contemporary American Culture: A Meta-Analytic Investigation of Horizontal– Vertical Individualism–Collectivism,” Journal of Cross-Cultural Psychology 44, no. 2 (2013): 195–222.
95. M. Voronov and J. A. Singer, “The Myth of Individualism- Collectivism: A Critical Review,” Journal of Social Psychol- ogy 142(2002): 461–80; Y. Takano and S. Sogon, “Are Japanese More Collectivistic Than Americans?” Journal of Cross-Cultural Psychology 39, no. 3 (2008): 237–50; D. Dalsky, “Individuality in Japan and the United States: A Cross-Cultural Priming Experiment,” International Journal of Intercultural Relations 34, no. 5 (2010): 429–35. Japan scored 46 on individualism in Hofstede’s original study, placing it a little below the middle of the range and around the 60th percentile among the countries studied.
96. G. Hofstede, Culture’s Consequences: Comparing Values, Behaviors, Institutions, and Organizations across Nations, 2nd ed. (Thousand Oaks, CA: Sage, 2001).
97. “Rolling up the Sleeves,” Shanghai Daily, 3 September 2012. 98. Hofstede, Culture’s Consequences. Hofstede used the terms
masculinity and femininity instead of achievement and nurturing orientation, respectively. We (along with other writers) have adopted the latter two terms to minimize the sexist perspective of these concepts. Also, readers need to be aware that an achievement orientation is as- sumed to be opposite a nurturing orientation, but this opposing relationship might be questioned.
99. V. Taras, J. Rowney, and P. Steel, “Half a Century of Measuring Culture: Review of Approaches, Challenges, and Limitations Based on the Analysis of 121 Instru- ments for Quantifying Culture,” Journal of International Management 15, no. 4 (2009): 357–73.
100. R. L. Tung and A. Verbeke, “Beyond Hofstede and GLOBE: Improving the Quality of Cross-Cultural Re- search,” Journal of International Business Studies 41, no. 8 (2010): 1259–74.
101. W. K. W. Choy, A. B. E. Lee, and P. Ramburuth, “Multi- nationalism in the Workplace: A Myriad of Values in a Singaporean Firm,” Singapore Management Review 31, no. 1 (2009): 1–31.
102. N. Jacob, “Cross-Cultural Investigations: Emerging Con- cepts,” Journal of Organizational Change Management 18, no. 5 (2005): 514–28; V. Taras, B.L. Kirkman, and P. Steel, “Examining the Impact of Culture’s Consequences: A Three-Decade, Multilevel, Meta-Analytic Review of
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15. C. L. Guenther and M. D. Alicke, “Deconstructing the Better-Than-Average Effect,” Journal of Personality and Social Psychology 99, no. 5 (2010): 755–70; S. Loughnan et al., “Universal Biases in Self-Perception: Better and More Human Than Average,” British Journal of Social Psychology 49 (2010): 627–36; H. C. Boucher, “Under- standing Western-East Asian Differences and Similarities in Self-Enhancement,” Social and Personality Psychology Compass 4, no. 5 (2010): 304–17; A. Gregg, C. Sedikides, and J. Gebauer, “Dynamics of Identity: Between Self- Enhancement and Self-Assessment,” in Handbook of Iden- tity Theory and Research, ed. S. J. Schwartz, K. Luyckx, and V. L. Vignoles (Springer New York, 2011), 305–27.
16. D. Dunning, C. Heath, and J. M. Suls, “Flawed Self- Assessment: Implications for Health, Education, and the Workplace,” Psychological Science in the Public Interest 5, no. 3 (2004): 69–106; D. A. Moore, “Not so above Av- erage after All: When People Believe They Are Worse than Average and Its Implications for Theories of Bias in Social Comparison,” Organizational Behavior and Human Decision Processes 102, no. 1 (2007): 42–58.
17. K. P. Cross, “Not Can, but Will College Teaching Be Im- proved?” New Directions for Higher Education, no. 17 (1977): 1–15; U.S. Merit Systems Protection Board, “Accomplishing Our Mission: Results of the 2005 Merit Principles Survey” (Washington, DC: U. S. Merit Systems Protection Board, 2007); J. Montier, Behavioral Investing (Chicester, UK: John Wiley & Sons, 2007): 82–83; V. G. Perry, “Is Ignorance Bliss? Consumer Accuracy in Judg- ments About Credit Ratings,” Journal of Consumer Affairs 42, no. 2 (2008): 189–205; J. M. Twenge, W. K. Camp- bell, and B. Gentile, “Generational Increases in Agentic Self-Evaluations among American College Students, 1966–2009,” Self and Identity 11, no. 4 (2011): 409–27; A. Sundström, “The Validity of Self-Reported Driver Competence: Relations between Measures of Perceived Driver Competence and Actual Driving Skill,” Transpor- tation Research Part F: Traffic Psychology and Behaviour 14, no. 2 (2011): 155–63.
18. J. A. Doukas and D. Petmezas, “Acquisitions, Overconfi- dent Managers and Self-Attribution Bias,” European Fi- nancial Management 13, no. 3 (2007): 531–77; N. Harrè and C. G. Sibley, “Explicit and Implicit Self-Enhancement Biases in Drivers and Their Relationship to Driving Violations and Crash-Risk Optimism,” Accident Analysis & Prevention 39, no. 6 (2007): 1155–61; D. A. Moore and P. J. Healy, “The Trouble with Overconfidence,” Psychological Review 115, no. 2 (2008): 502–17; F. Jiang et al., “Managerial Hubris, Firm Expansion and Firm Performance: Evidence from China,” The Social Science Journal 48, no. 3 (2011): 489–99; A. S. Ahmed and S. Duellman, “Managerial Overconfidence and Account- ing Conservatism,” Journal of Accounting Research 51, no. 1 (2013): 1–30.
19. W. B. Swann Jr., “To Be Adored or to Be Known? The Interplay of Self-Enhancement and Self-Verification,” in Foundations of Social Behavior, ed. R. M. Sorrentino and E. T. Higgins (New York: Guildford, 1990), 408–48; W. B. Swann Jr, P. J. Rentfrow, and J. S. Guinn, “Self-Verification: The Search for Coherence,” in Handbook of Self and Iden- tity, ed. M. R. Leary and J. Tagney (New York: Guildford, 2002), 367–83; D. M. Cable and V. S. Kay, “Striving for
no. 5 (2012): 997–1013; R. E. Johnson et al., “Leader Identity as an Antecedent of the Frequency and Consis- tency of Transformational, Consideration, and Abusive Leadership Behaviors,” Journal of Applied Psychology 97, no. 6 (2012): 1262–72.
5. E. Rafaeli-Mor and J. Steinberg, “Self-Complexity and Well-Being: A Review and Research Synthesis,” Personal- ity and Social Psychology Review 6, no. 1 (2002): 31–58; E. J. Koch and J. A. Shepperd, “Is Self-Complexity Linked to Better Coping? A Review of the Literature,” Journal of Personality 72, no. 4 (2004): 727–60; A. R. McConnell, R. J. Rydell, and C. M. Brown, “On the Experience of Self-Relevant Feedback: How Self-Concept Organization Influences Affective Responses and Self-Evaluations,” Journal of Experimental Social Psychology 45, no. 4 (2009): 695–707.
6. G. Quill, “HéLèNe Joy: Successful—and Ignored,” Toronto Star, 10 January 2009; “Canada Wins Aussie Joy,” West Australian, 29 June 2011, 5.
7. J. D. Campbell et al., “Self-Concept Clarity: Measure- ment, Personality Correlates, and Cultural Boundaries,” Journal of Personality and Social Psychology 70, no. 1 (1996): 141–56.
8. J. Lodi-Smith and B. W. Roberts, “Getting to Know Me: Social Role Experiences and Age Differences in Self- Concept Clarity During Adulthood,” Journal of Personality 78, no. 5 (2010): 1383–410.
9. E. J. Koch and J. A. Shepperd, “Is Self-Complexity Linked to Better Coping? A Review of the Literature,” 72, no. 4 (2004): 727–60; T. D. Ritchie et al., “Self- Concept Clarity Mediates the Relation between Stress and Subjective Well-Being,” Self and Identity 10, no. 4 (2010): 493–508.
10. A. T. Brook, J. Garcia, and M. A. Fleming, “The Effects of Multiple Identities on Psychological Well-Being,” Per- sonality and Social Psychology Bulletin 34, no. 12 (2008): 1588–600.
11. J. D. Campbell, “Self-Esteem and Clarity of the Self-Concept,” Journal of Personality and Social Psychology 59, no. 3 (1990).
12. T. W. H. Ng, K. L. Sorensen, and D. C. Feldman, “Dimensions, Antecedents, and Consequences of Workaholism: A Conceptual Integration and Extension,” Journal of Organizational Behavior 28 (2007): 111–36; S. Pachulicz, N. Schmitt, and G. Kuljanin, “A Model of Career Success: A Longitudinal Study of Emergency Phy- sicians,” Journal of Vocational Behavior 73, no. 2 (2008): 242–53; M. N. Bechtoldt et al., “Self-Concept Clarity and the Management of Social Conflict,” Journal of Personality 78, no. 2 (2010): 539–74.
13. B. George, Authentic Leadership (San Francisco: Jossey- Bass, 2004); S. T. Hannah and B. J. Avolio, “Ready or Not: How Do We Accelerate the Developmental Readi- ness of Leaders?” Journal of Organizational Behavior 31, no. 8 (2010): 1181–87.
14. This quotation has been cited since the 1930s, yet we were unable to find it in any of Dewey’s writing. The ear- liest known reference to this quotation is Dale Carnegie’s famous self-help book, where the statement is attributed to Dewey. See D. Carnegie, How to Win Friends and In- fluence People, 1st ed. (New York: Simon & Schuster, 1936), 43–44 (p. 19 in later editions).
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(1982): 482–97; K. Hattrup, M. S. O’Connell, and J. R. Labrador, “Incremental Validity of Locus of Control after Controlling for Cognitive Ability and Conscientious- ness,” Journal of Business and Psychology 19, no. 4 (2005): 461–81; T. W. H. Ng, K. L. Sorensen, and L. T. Eby, “Locus of Control at Work: A Meta-Analysis,” Journal of Organizational Behavior 27 (2006): 1057–87; Q. Wang, N. A. Bowling, and K. J. Eschleman, “A Meta-Analytic Examination of Work and General Locus of Control,” Journal of Applied Psychology 95, no. 4 (2010): 761–68.
29. J. M. Twenge, L. Zhang, and C. Im, “It’s Beyond My Control: A Cross-Temporal Meta-Analysis of Increasing Externality in Locus of Control, 1960–2002,” Personality and Social Psychology Review 8, no. 3 (2004): 308–19.
30. M. A. Hogg and D. J. Terry, “Social Identity and Self-Categorization Processes in Organizational Contexts,” Academy of Management Review 25 (2000): 121–40; L. L. Gaertner et al., “The ‘I,’ the ‘We,’ and the ‘When’: A Meta-Analysis of Motivational Primacy in Self-Definition,” Journal of Personality and Social Psychology 83, no. 3 (2002): 574; S. A. Haslam, R. A. Eggins, and K. J. Reynolds, “The Aspire Model: Actualizing Social and Personal Identity Resources to Enhance Organizational Outcomes,” Journal of Occupational and Organizational Psychology 76 (2003): 83–113; S. A. Haslam, S. D. Reicher, and M. J. Platow, The New Psychology of Leader- ship (Hove, UK: Psychology Press, 2011).
31. C. Sedikides and A. P. Gregg, “Portraits of the Self,” in The Sage Handbook of Social Psychology, ed. M. A. Hogg and J. Cooper (London: Sage Publications, 2003), 110–38. The history of the social self in human beings is described in M. R. Leary and N. R. Buttermore, “The Evolution of the Human Self: Tracing the Natural His- tory of Self-Awareness,” Journal for the Theory of Social Behaviour 33, no. 4 (2003): 365–404.
32. M. R. Edwards, “Organizational Identification: A Con- ceptual and Operational Review,” International Journal of Management Reviews 7, no. 4 (2005): 207–30; D. A. Whetten, “Albert and Whetten Revisited: Strengthening the Concept of Organizational Identity,” Journal of Man- agement Inquiry 15, no. 3 (2006): 219–34.
33. M. B. Brewer, “The Social Self: On Being the Same and Different at the Same Time,” Personality and Social Psy- chology Bulletin 17, no. 5 (1991): 475–82; R. Imhoff and H.-P. Erb, “What Motivates Nonconformity? Uniqueness Seeking Blocks Majority Influence,” 35, no. 3 (2009): 309–20; K. R. Morrison and S. C. Wheeler, “Noncon- formity Defines the Self: The Role of Minority Opinion Status in Self-Concept Clarity,” 36 (2010): 297–308; M. G. Mayhew, J. Gardner, and N. M. Ashkanasy, “Measur- ing Individuals’ Need for Identification: Scale Develop- ment and Validation,” Personality and Individual Differences 49, no. 5 (2010): 356–61.
34. See, for example W. B. Swann Jr, R. E. Johnson, and J. K. Bosson, “Identity Negotiation at Work,” Research in Or- ganizational Behavior 29 (2009): 81–109; H.-L. Yang and C.-Y. Lai, “Motivations of Wikipedia Content Con- tributors,” Computers in Human Behavior 26, no. 6 (2010): 1377–83; Bechtoldt et al., “Self-Concept Clarity and the Management of Social Conflict; Hannah and Avolio, “Ready or Not: How Do We Accelerate the De- velopmental Readiness of Leaders?”
Self-Verification During Organizational Entry,” Academy of Management Journal 55, no. 2 (2012): 360–80.
20. F. Anseel and F. Lievens, “Certainty as a Moderator of Feedback Reactions? A Test of the Strength of the Self-Verification Motive,” Journal of Occupational & Organizational Psychology 79, no. 4 (2006): 533–51; T. Kwang and W. B. Swann, “Do People Embrace Praise Even When They Feel Unworthy? A Review of Critical Tests of Self-Enhancement Versus Self-Verification,” Per- sonality and Social Psychology Review 14, no. 3 (2010): 263–80.
21. M. R. Leary, “Motivational and Emotional Aspects of the Self,” Annual Review of Psychology 58, no. 1 (2007): 317–44.
22. D. M. Cable, F. Gino, and B. Staats, “Breaking Them in or Revealing Their Best? Reframing Socialization around Newcomer Self-Expression,” Administrative Science Quar- terly (in press).
23. T. A. Judge and J. E. Bono, “Relationship of Core Self-Evaluations Traits—Self-Esteem, Generalized Self-Efficacy, Locus of Control, and Emotional Stability— with Job Satisfaction and Job Performance: A Meta- Analysis,” Journal of Applied Psychology 86, no. 1 (2001): 80–92; T. A. Judge and C. Hurst, “Capitalizing on One’s Advantages: Role of Core Self-Evaluations,” 92, no. 5 (2007): 1212–27. We have described the three most commonly identified components of self-evaluation. The full model also includes emotional stability (low neuroti- cism), but it is a behavior tendency (personality dimen- sion), whereas the other three components are self-evaluations. Generally, the core self-evaluation model has received limited research and its dimensions continue to be debated. For example, see T. W. Self, “Evaluating Core Self-Evaluations: Application of a Multidimen- sional, Latent-Construct, Evaluative Framework to Core Self-Evaluations Research” (Ph.D., University of Hous- ton, 2007); R. E. Johnson, C. C. Rosen, and P. E. Levy, “Getting to the Core of Core Self-Evaluation: A Review and Recommendations,” Journal of Organizational Behav- ior 29 (2008): 391–413.
24. R .F. Baumeister and J. M. Twenge, The Social Self, Handbook of Psychology (New York: John Wiley & Sons, 2003); W. B. Swann Jr., C. Chang-Schneider, and K. L. McClarty, “Do People’s Self-Views Matter?: Self-Concept and Self-Esteem in Everyday Life,” Ameri- can Psychologist 62, no. 2 (2007): 84–94.
25. A. Bandura, Self-Efficacy: The Exercise of Control (New York: W. H. Freeman, 1997). However, one review found that self-efficacy’s effect on task and job performance is much lower when also including the effects of personality traits on performance. See T. A. Judge et al., “Self-Efficacy and Work-Related Performance: The Integral Role of Individual Differences,” Journal of Applied Psychology 92, no. 1 (2007): 107–27.
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42. E. Rassin, A. Eerland, and I. Kuijpers, “Let’s Find the Ev- idence: An Analogue Study of Confirmation Bias in Criminal Investigations,” Journal of Investigative Psychol- ogy and Offender Profiling 7, no. 3 (2010): 231–46; C. Wastell et al., “Identifying Hypothesis Confirmation Behaviors in a Simulated Murder Investigation: Implica- tions for Practice,” 9, no. 2 (2012): 184–98.
43. The Sherlock Holmes quotation is from S. A. Conan Doyle, “A Study in Scarlet,” in The Complete Sherlock Holmes (New York: Fine Creative Media, 2003), 3–96. Sherlock Holmes offers similar advice in “A Scandal in Bohemia,” p. 189. The West Virginia case is reported in K. Gregory, “Unsolved Case: Police Still Looking for Kathy Goble, Missing since 2010,” Charleston Gazette, 24 April 2011, P1A.
44. C. N. Macrae and G. V. Bodenhausen, “Social Cognition: Thinking Categorically About Others,” Annual Review of Psychology 51 (2000): 93–120. For literature on the auto- maticity of the perceptual organization and interpretation process, see J. A. Bargh, “The Cognitive Monster: The Case against the Controllability of Automatic Stereotype Effects,” in Dual Process Theories in Social Psychology, ed. S. Chaiken and Y. Trope (New York: Guilford, 1999), 361–82; J. A. Bargh and M. J. Ferguson, “Beyond Behav- iorism: On the Automaticity of Higher Mental Processes,” Psychological Bulletin 126, no. 6 (2000): 925–45; M. Gladwell, Blink: The Power of Thinking without Thinking (New York: Little, Brown, 2005).
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(1999): 462–79; S. T. Fiske, “What We Know Now About Bias and Intergroup Conflict, the Problem of the Century,” Current Directions in Psychological Science 11, no. 4 (2002): 123–28; R. Krieglmeyer and J. W. Sherman, “Disentangling Stereotype Activation and Stereotype Application in the Stereotype Misperception Task,” Jour- nal of Personality and Social Psychology 103, no. 2 (2012): 205–24. On the limitations of some stereotype training, see B. Gawronski et al., “When ‘Just Say No’ Is Not Enough: Affirmation Versus Negation Training and the Reduction of Automatic Stereotype Activation,” Journal of Experimental Social Psychology 44 (2008): 370–77.
60. H. H. Kelley, Attribution in Social Interaction (Morris- town, NJ: General Learning Press, 1971); B. F. Malle, “Attribution Theories: How People Make Sense of Be- havior,” in Theories of Social Psychology, ed. D. Chadee (Chicester, UK: Blackwell Publishing, 2011), 72–95. This “internal-external” or “person-situation” perspective of the attribution process differs somewhat from the orig- inal “intentional-unintentional” perspective, which says that we try to understand the deliberate or accidental/in- voluntary reasons why people engage in behaviors, as well as the reasons for behavior. Some writers suggest the orig- inal perspective is more useful. See “Time to Give up the Dogmas of Attribution: An Alternative Theory of Behav- ior Explanation,” in Advances in Experimental Social Psy- chology, Vol. 44, ed. K. M. Olson and M. P. Zanna, Advances in Experimental Social Psychology (San Diego: Elsevier Academic Press, 2011), 297–352.
61. H. H. Kelley, “The Processes of Causal Attribution,” American Psychologist 28 (1973): 107–28.
62. J. M. Schaubroeck and P. Shao, “The Role of Attribution in How Followers Respond to the Emotional Expression of Male and Female Leaders,” The Leadership Quarterly 23, no. 1 (2012): 27–42; D. Lange and N. T. Washburn, “Understanding Attributions of Corporate Social Irre- sponsibility,” Academy of Management Review 37, no. 2 (2012): 300–26.
63. J. M. Crant and T. S. Bateman, “Assignment of Credit and Blame for Performance Outcomes,” Academy of Management Journal 36 (1993): 7–27; B. Weiner, “Intra- personal and Interpersonal Theories of Motivation from an Attributional Perspective,” Educational Psychology Re- view 12 (2000): 1–14; N. Bacon and P. Blyton, “Worker Responses to Teamworking: Exploring Employee Attri- butions of Managerial Motives,” International Journal of Human Resource Management 16, no. 2 (2005): 238–55.
64. D. T. Miller and M. Ross, “Self-Serving Biases in the At- tribution of Causality: Fact or Fiction?” Psychological Bul- letin 82, no. 2 (1975): 213–25; J. Shepperd, W. Malone, and K. Sweeny, “Exploring Causes of the Self-Serving Bias,” Social and Personality Psychology Compass 2, no. 2 (2008): 895–908.
65. E. W. K. Tsang, “Self-Serving Attributions in Corporate Annual Reports: A Replicated Study,” Journal of Manage- ment Studies 39, no. 1 (2002): 51–65; N. J. Roese and J. M. Olson, “Better, Stronger, Faster: Self-Serving Judgment, Affect Regulation, and the Optimal Vigilance Hypothesis,” Perspectives on Psychological Science 2, no. 2 (2007): 124–41; R. Hooghiemstra, “East–West Differences in Attributions for Company Performance: A Content Analysis of Japanese and U.S. Corporate Annual Reports,”
and D. F. Sacco, “Social Categorization and Stereotyping: How Social Categorization Biases Person Perception and Face Memory,” Social and Personality Psychology Compass 2, no. 2 (2008): 1052–72.
52. N. Halevy, G. Bornstein, and L. Sagiv, ““In-Group Love” and “Out-Group Hate” as Motives for Individual Partici- pation in Intergroup Conflict: A New Game Paradigm,” Psychological Science 19, no. 4 (2008): 405–11; T. Yam- agishi and N. Mifune, “Social Exchange and Solidarity: In-Group Love or Out-Group Hate?” Evolution and Hu- man Behavior 30, no. 4 (2009): 229–37; N. Halevy, O. Weisel, and G. Bornstein, ““In-Group Love” and “Out- Group Hate” in Repeated Interaction between Groups,” Journal of Behavioral Decision Making 25, no. 2 (2012): 188–95; M. Parker and R. Janoff-Bulman, “Lessons from Morality-Based Social Identity: The Power of Outgroup “Hate,” Not Just Ingroup “Love”,” Social Justice Research 26, no. 1 (2013): 81–96.
53. S. N. Cory, “Quality and Quantity of Accounting Stu- dents and the Stereotypical Accountant: Is There a Rela- tionship?” Journal of Accounting Education 10, no. 1 (1992): 1–24; P. D. Bougen, “Joking Apart: The Serious Side to the Accountant Stereotype,” Accounting, Organi- zations and Society 19, no. 3 (1994): 319–35; A. L. Friedman and S. R. Lyne, “The Beancounter Stereotype: Towards a General Model of Stereotype Generation,” Critical Perspectives on Accounting 12, no. 4 (2001): 423–51; A. Hoffjan, “The Image of the Accountant in a German Context,” Accounting and the Public Interest 4(2004): 62–89; T. Dimnik and S. Felton, “Accountant Stereotypes in Movies Distributed in North America in the Twentieth Century,” Accounting, Organizations and Society 31, no. 2 (2006): 129–55.
54. “Employers Face New Danger: Accidental Age Bias,” Omaha World-Herald, 10 October 2005, D1; “Tiptoeing through the Employment Minefield of Race, Sex, and Religion? Here’s Another One,” North West Business In- sider (Manchester, UK), February 2006.
55. K. Gladman and M. Lamb, “GMI Ratings’ 2012 Women on Boards Survey,” (New York: Governance Metrics In- ternational, 2012); Catalyst, “Quick Takes: Women on Boards,” (New York: Catalyst, 2012).
56. S. O. Gaines and E. S. Reed, “Prejudice: From Allport to Dubois,” American Psychologist 50 (1995): 96–103; S. T. Fiske, “Stereotyping, Prejudice, and Discrimination,” in Handbook of Social Psychology, ed. D. T. Gilbert, S. T. Fiske, and G. Lindzey (New York: McGraw-Hill, 1998), 357–411; M. Hewstone, M. Rubin, and H. Willis, “Intergroup Bias,” Annual Review of Psychology 53 (2002): 575–604.
57. C. Branch-Smith and J. A. Pooley, “Women Firefighters’ Experiences in the Western Australian Volunteer Bush Fire Service,” Australian Journal of Emergency Manage- ment 25, no. 3 (2010): 12–18.
58. E. Cediey and F. Foroni, “Discrimination in Access to Employment on Grounds of Foreign Origin in France,” (Geneva: International Labour Organization, 2008); P. Gumbel, “The French Exodus,” Time International, 16 April 2007, 18; “Study Finds Major Discrimination against Turkish Job Applicants,” The Local (Germany) (Berlin), 9 February 2010.
59. J. A. Bargh and T. L. Chartrand, “The Unbearable Auto- maticity of Being,” American Psychologist 54, no. 7
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75. W. H. Cooper, “Ubiquitous Halo,” Psychological Bulletin 90 (1981): 218–44; P. Rosenzweig, The Halo Effect . . . And the Eight Other Business Delusions That Deceive Managers (New York: The Free Press, 2007); J. W. Keeley et al., “Investigating Halo and Ceiling Effects in Student Evaluations of Instruction,” Educational and Psychological Measurement 73, no. 3 (2013): 440–57.
76. B. Mullen et al., “The False Consensus Effect: A Meta- Analysis of 115 Hypothesis Tests,” Journal of Experimen- tal Social Psychology 21, no. 3 (1985): 262–83; G. Marks and N. Miller, “Ten Years of Research on the False- Consensus Effect: An Empirical and Theoretical Review,” Psychological Bulletin 102, no. 1 (1987): 72–90; F. J. Flynn and S. S. Wiltermuth, “Who’s with Me? False Consensus, Brokerage, and Ethical Decision Making in Organizations,” Academy of Management Journal 53, no. 5 (2010): 1074–89.
77. C. L. Kleinke, First Impressions: The Psychology of Encoun- tering Others (Englewood Cliffs, NJ: Prentice Hall, 1975); E. A. Lind, L. Kray, and L. Thompson, “Primacy Effects in Justice Judgments: Testing Predictions from Fairness Heuristic Theory,” Organizational Behavior and Human Decision Processes 85 (2001): 189–210; O. Ybarra, “When First Impressions Don’t Last: The Role of Isolation and Adaptation Processes in the Revision of Evaluative Im- pressions,” Social Cognition 19 (2001): 491–520.
78. D. D. Steiner and J. S. Rain, “Immediate and Delayed Primacy and Recency Effects in Performance Evaluation,” Journal of Applied Psychology 74 (1989): 136–42; K. T. Trotman, “Order Effects and Recency: Where Do We Go from Here?” Accounting & Finance 40(2000): 169–82; W. Green, “Impact of the Timing of an Inherited Expla- nation on Auditors’ Analytical Procedures Judgements,” Accounting and Finance 44 (2004): 369–92.
79. L. Roberson, C. T. Kulik, and M. B. Pepper, “Using Needs Assessment to Resolve Controversies in Diversity Training Design,” Group & Organization Management 28, no. 1 (2003): 148–74; D. E. Hogan and M. Mallott, “Changing Racial Prejudice through Diversity Education,” Journal of College Student Development 46, no. 2 (2005): 115–25; Gawronski et al., “When ‘Just Say No’ Is Not Enough.”
80. A. Kalev, F. Dobbin, and E. Kelly, “Best Practices or Best Guesses? Assessing the Efficacy of Corporate Affirmative Action and Diversity Policies,” American Sociological Re- view 71(2006): 589–617; J. Watson, “When Diversity Training Goes Awry,” Black Issues In Higher Education, 24 January 2008, 11; A. Nancherla, “Why Diversity Train- ing Doesn’t Work . . . Right Now,” T&D, November 2008, 52–61; E. L. Paluck and D. P. Green, “Prejudice Reduc- tion: What Works? A Review and Assessment of Research and Practice,” Annual Review of Psychology 60, no. 1 (2009): 339–67; A. Carrns, “Training in Trouble,” Boston Globe, 5 December 2010, 8.
81. Eden, “Self-Fulfilling Prophecy as a Management Tool: Harnessing Pygmalion”; S. S. White and E. A. Locke, “Problems with the Pygmalion Effect and Some Proposed Solutions,” Leadership Quarterly 11 (2000): 389–415.
82. T. W. Costello and S. S. Zalkind, Psychology in Adminis- tration: A Research Orientation (Englewood Cliffs, NJ: Prentice Hall, 1963), 45–46; J. M. Kouzes and B. Z. Posner, The Leadership Challenge, 4th ed. (San Francisco: Jossey-Bass, 2007), Ch. 3.
Journal of Cross-Cultural Psychology 39, no. 5 (2008): 618–29; M. Franco and H. Haase, “Failure Factors in Small and Medium-Sized Enterprises: Qualitative Study from an Attributional Perspective,” International Entrepre- neurship and Management Journal 6, no. 4 (2010): 503–21.
66. S. S. Van Dine (Willard Huntington Wright), The Benson Murder Mystery (New York: Charles Scribner’s Sons, 1926), Ch. 6.
67. A. Davis, “Moving to Greener Pastures,” Employee Benefit News, December 2010, 18.
68. D. T. Gilbert and P. S. Malone, “The Correspondence Bias,” Psychological Bulletin 117, no. 1 (1995): 21–38.
69. I. Choi, R. E. Nisbett, and A. Norenzayan, “Causal Attri- bution across Cultures: Variation and Universality,” 125 (1999): 47–63; R. E. Nisbett, The Geography of Thought: How Asians and Westerners Think Differently—and Why (New York: The Free Press, 2003), Ch. 5; S. G. Goto et al., “Cultural Differences in Sensitivity to Social Context: Detecting Affective Incongruity Using the N400,” Social Neuroscience 8, no. 1 (2012): 63–74.
70. B. F. Malle, “The Actor-Observer Asymmetry in Attribu- tion: A (Surprising) Meta-Analysis,” Psychological Bulletin 132, no. 6 (2006): 895–919; C. W. Bauman and L. J. Skitka, “Making Attributions for Behaviors: The Prevalence of Correspondence Bias in the General Population,” Basic and Applied Social Psychology 32, no. 3 (2010): 269–77.
71. Similar models are presented in D. Eden, “Self-Fulfilling Prophecy as a Management Tool: Harnessing Pygma- lion,” Academy of Management Review 9 (1984): 64–73; R. H. G. Field and D. A. Van Seters, “Management by Expectations (MBE): The Power of Positive Prophecy,” Journal of General Management 14 (1988): 19–33; D. O. Trouilloud et al., “The Influence of Teacher Expectations on Student Achievement in Physical Education Classes: Pygmalion Revisited,” European Journal of Social Psychol- ogy 32 (2002): 591–607.
72. D. Eden, “Interpersonal Expectations in Organizations,” in Interpersonal Expectations: Theory, Research, and Appli- cations (Cambridge, UK: Cambridge University Press, 1993), 154–78.
73. K. S. Crawford, E. D. Thomas, and J. J. Fink, “Pygma- lion at Sea: Improving the Work Effectiveness of Low Performers,” Journal of Applied Behavioral Science 16 (1980): 482–505; D. Eden, “Pygmalion Goes to Boot Camp: Expectancy, Leadership, and Trainee Perfor- mance,” Journal of Applied Psychology 67 (1982): 194–99; C. M. Rubie-Davies, “Teacher Expectations and Student Self-Perceptions: Exploring Relation- ships,” Psychology in the Schools 43, no. 5 (2006): 537–52; P. Whiteley, T. Sy, and S. K. Johnson, “Lead- ers’ Conceptions of Followers: Implications for Natu- rally Occurring Pygmalion Effects,” Leadership Quarterly 23, no. 5 (2012): 822–34.
74. S. Madon, L. Jussim, and J. Eccles, “In Search of the Powerful Self-Fulfilling Prophecy,” Journal of Personality and Social Psychology 72, no. 4 (1997): 791–809; A. E. Smith, L. Jussim, and J. Eccles, “Do Self-Fulfilling Prophecies Accumulate, Dissipate, or Remain Stable over Time?,” 77, no. 3 (1999): 548–65; S. Madon et al., “Self-Fulfilling Prophecies: The Synergistic Accumulative Effect of Parents’ Beliefs on Children’s Drinking Behav- ior,” Psychological Science 15, no. 12 (2005): 837–45.
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Social Issues 55 (1999): 729–43; S. K. Parker and C. M. Axtell, “Seeing Another Viewpoint: Antecedents and Outcomes of Employee Perspective Taking,” Academy of Management Journal 44 (2001): 1085–100; G. J. Vreeke and I. L. van der Mark, “Empathy, an Integrative Model,” New Ideas in Psychology 21, no. 3 (2003): 177–207.
92 M. Tarrant, R. Calitri, and D. Weston, “Social Identifica- tion Structures the Effects of Perspective Taking,” Psycho- logical Science 23, no. 9 (2012): 973–78; J. L. Skorinko and S. A. Sinclair, “Perspective Taking Can Increase Ste- reotyping: The Role of Apparent Stereotype Confirma- tion,” Journal of Experimental Social Psychology 49, no. 1 (2013): 10–18.
93. A. Sugimoto, “English Is Vital, Rakuten Boss Says–but It Isn’t Everything,” Nikkei Weekly (Tokyo), 22 April 2013.
94. S. J. Black, W. H. Mobley, and E. Weldon, “The Mindset of Global Leaders: Inquisitiveness and Duality,” in Ad- vances in Global Leadership (Greenwich, CT: JAI Press, 2006), 181–200; O. Levy et al., “What We Talk About When We Talk About ‘Global Mindset’: Managerial Cognition in Multinational Corporations,” Journal of In- ternational Business Studies 38, no. 2: 231–58; S. Beechler and D. Baltzley, “Creating a Global Mindset,” Chief Learning Officer 7, no. 6 (2008): 40–45.
95. “Sharing Experiences,” Offshore Marine, March 2008, 26–27; J. Kwok, “Values Weld Keppel’s Global Force,” Sunday Times (Singapore), 28 May 2013.
96. A. K. Gupta and V. Govindarajan, “Cultivating a Global Mindset,” Academy of Management Executive 16, no. 1 (2002): 116–26.
97. M. Jackson, “Corporate Volunteers Reaching World- wide,” Boston Globe, 4 May 2008, 3.
98. IBM, Sam Palmisano Discusses IBM’s New Corporate Ser- vice Corps, (Armonk, NY: IBM, 2007); “IBM’s Corporate Service Corps Heading to Six Emerging Countries to Spark Socio-Economic Growth While Developing Global Leaders,” (Armonk, NY: IBM, 2008); C. Hymowitz, “IBM Combines Volunteer Service, Teamwork to Culti- vate Emerging Markets,” The Wall Street Journal, 4 August 2008, B6.
CHAPTER 4
1. S. Edge, “I’m the World Famous Jet Rebel,” Daily Express (U.K.), 13 August 2010, 32–33; A. Newman and R. Rivera, “Fed-up Flight Attendant Lets Curses Fly, Then Makes Sliding Exit,” The New York Times, 10 August 2010; T. Rochester, “T. O. Mother of Jetblue Flight At- tendant Understands Meltdown,” Ventura County Star (CA), 11 August 2010; B. Walters, “Crews Gone Wild: When Flight Crews Have Had Enough,” ABC 20/20 (New York), 23 March 2013.
2. Emotions are also cognitive processes. However, we use the narrow definition of cognition as a well-used label re- ferring only to reasoning processes. Also, this and other chapters emphasize that emotional and cognitive pro- cesses are intertwined.
3. For a discussion of emotions in marketing, economics, and sociology, see: M. Hubert, “Does Neuroeconomics Give New Impetus to Economic and Consumer Re- search?” Journal of Economic Psychology 31, no. 5 (2010): 812–17; D. D. Franks, Neurosociology: The Nexus between Neuroscience and Social Psychology Introduction
83. George, Authentic Leadership; W. L. Gardner et al., “‘Can You See the Real Me?’ A Self-Based Model of Authentic Leader and Follower Development,” Leadership Quarterly 16 (2005): 343–72; B. George, True North (San Francisco: Jossey-Bass, 2007).
84. W. Hofmann et al., “Implicit and Explicit Attitudes and Interracial Interaction: The Moderating Role of Situa- tionally Available Control Resources,” Group Processes In- tergroup Relations 11, no. 1 (2008): 69–87; A. G. Greenwald et al., “Understanding and Using the Implicit Association Test: III. Meta-Analysis of Predictive Valid- ity,” Journal of Personality and Social Psychology 97, no. 1 (2009): 17–41; J. D. Vorauer, “Completing the Implicit Association Test Reduces Positive Intergroup Interaction Behavior,” Psychological Science 23, no. 10 (2012): 1168–75.
85. Hofmann et al., “Implicit and Explicit Attitudes and In- terracial Interaction: The Moderating Role of Situation- ally Available Control Resources”; J. T. Jost et al., “The Existence of Implicit Bias Is Beyond Reasonable Doubt: A Refutation of Ideological and Methodological Objec- tions and Executive Summary of Ten Studies That No Manager Should Ignore,” Research in Organizational Be- havior 29 (2009): 39–69.
86. J. Luft, Of Human Interaction (Palo Alto, CA: National Press, 1969). For a variation of this model, see J. Hall, “Communication Revisited,” California Management Re- view 15 (1973): 56–67.
87. S. Vazire and M. R. Mehl, “Knowing Me, Knowing You: The Accuracy and Unique Predictive Validity of Self- Ratings and Other-Ratings of Daily Behavior,” Journal of Personality and Social Psychology 95, no. 5 (2008): 1202–16; S. Vazire, “Who Knows What About a Person? The Self-Other Knowledge Asymmetry (Soka) Model,” 98, no. 2 (2010): 281–300.
88. P. J. Henry and C. D. Hardin, “The Contact Hypothesis Revisited: Status Bias in the Reduction of Implicit Preju- dice in the United States and Lebanon,” Psychological Sci- ence 17, no. 10 (2006): 862–68; T. F. Pettigrew and L. R. Tropp, “A Meta-Analytic Test of Intergroup Contact Theory,” Journal of Personality and Social Psychology 90, no. 5 (2006): 751–83; T. F. Pettigrew, “Future Directions for Intergroup Contact Theory and Research,” Interna- tional Journal of Intercultural Relations 32, no. 3 (2008): 187–99; F. K. Barlow et al., “The Contact Caveat: Nega- tive Contact Predicts Increased Prejudice More Than Positive Contact Predicts Reduced Prejudice,” Personality and Social Psychology Bulletin 38, no. 12 (2012): 1629–43.
89. The contact hypothesis was first introduced in Allport, The Nature of Prejudice, Ch. 16.
90. L. Buchanan, “The Un-Factory,” Inc. 32, no. 5 (2010): 62–67; J. Manby, “A CEO Goes Undercover,” HBS Alumni Bulletin, September 2010; G. Avery, “Colleen Abdoulah Sees Wow! as Different Type of Cable Com- pany,” Denver Business Journal, 19 October 2012; S. Long, “The Change-Makers: Save, Give, Value All,” Straits Times (Singapore), 26 April 2013.
91. C. Duan and C. E. Hill, “The Current State of Empathy Research,” Journal of Counseling Psychology 43 (1996): 261–74; W. G. Stephen and K. A. Finlay, “The Role of Empathy in Improving Intergroup Relations,” Journal of
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Review of Psychology 62, no. 1 (2011): 391–417. The definition of attitudes is still being debated. First, it is unclear whether an attitude includes emotions (affect) or whether emotions influence an attitude. We take the lat- ter view. Although emotions influence and are closely connected to attitudes, an attitude is best defined as an evaluation of an attitude object. That evaluation is not always conscious, however. Second, a few writers argue that attitudes are formed each time they think about the attitude object, which is contrary to the traditional view that attitudes are fairly stable predispositions toward the attitude object. Third, though less of an issue now, some attitude models refer only to the “feelings” component, whereas we view attitude as a three-component con- struct (beliefs, feelings, behavioral intentions). For various definitions of attitude and discussion of these variations, see I. Ajzen, “Nature and Operation of Atti- tudes,” Annual Review of Psychology 52 (2001): 27–58; D. Albarracín et al., “Attitudes: Introduction and Scope,” in The Handbook of Attitudes, ed. D. Albarracín, B. T. Johnson, and M. P. Zanna (Mahwah, NJ: Lawrence Erlbaum Associates, 2005), 3–20; W. A. Cunningham and P. D. Zelazo, “Attitudes and Evaluations: A Social Cognitive Neuroscience Perspective,” TRENDS in Cog- nitive Sciences 11, no. 3 (2007): 97–104; B. Gawronski, “Editorial: Attitudes Can Be Measured! But What Is an Attitude?” Social Cognition 25, no. 5 (2007): 573–81; R. S. Dalal, “Job Attitudes: Cognition and Affect,” in Handbook of Psychology, 2d ed. (New York: John Wiley & Sons, Inc., 2012).
11. Neuroscience has a slightly more complicated distinction, in that conscious awareness is “feeling a feeling,” whereas “feeling” is a nonconscious sensing of the body state cre- ated by emotion, which itself is a nonconscious neural reaction to a stimulus. However, this distinction is not significant for scholars focused on human behavior rather than brain activity, and the labels collide with popular understanding of “feeling.” See: A. R. Damasio, The Feeling of What Happens: Body and Emotion in the Making of Consciousness (New York: Harcourt Brace and Company, 1999); F. Hansen, “Distinguishing between Feelings and Emotions in Understanding Communica- tion Effects,” Journal of Business Research 58, no. 10 (2005): 1426–36; T. Bosse, C. M. Jonker, and J. Treur, “Formalisation of Damasio’s Theory of Emotion, Feeling and Core Consciousness,” Consciousness and Cognition 17, no. 1 (2008): 94–113.
12. Cunningham and Zelazo, “Attitudes and Evaluations”; M. D. Lieberman, “Social Cognitive Neuroscience: A Re- view of Core Processes,” Annual Review of Psychology 58, no. 1 (2007): 259–89; M. Fenton-O’Creevy et al., “Thinking, Feeling and Deciding: The Influence of Emotions on the Decision Making and Performance of Traders,” Journal of Organizational Behavior (2010): n/a-n/a. The dual emotion–cognition processes are likely the same as the implicit–explicit attitude processes re- ported by several scholars, as well as tacit knowledge structures. See: B. Gawronski and G. V. Bodenhausen, “Unraveling the Processes Underlying Evaluation: Atti- tudes from the Perspective of the Ape Model,” Social Cognition 25, no. 5 (2007): 687–717; W. J. Becker and R. Cropanzano, “Organizational Neuroscience: The
(New York: Springer, 2010); N. Martins, “Can Neurosci- ence Inform Economics? Rationality, Emotions and Pref- erence Formation,” Cambridge Journal of Economics 35, no. 2 (2011): 251–67; H. Plassmann, T. Z. Ramsøy, and M. Milosavljevic, “Branding the Brain: A Critical Review and Outlook,” Journal of Consumer Psychology 22, no. 1 (2012): 18–36.
4. The definition presented here is constructed from the following sources: N. M. Ashkanasy, W. J. Zerbe, and C. E. J. Hartel, “Introduction: Managing Emotions in a Changing Workplace,” in Managing Emotions in the Workplace, ed. N. M. Ashkanasy, W. J. Zerbe, and C. E. J. Hartel (Armonk, NY: M. E. Sharpe, 2002), 3–18; H. M. Weiss, “Conceptual and Empirical Foundations for the Study of Affect at Work,” in Emotions in the Workplace, ed. R. G. Lord, R. J. Klimoski, and R. Kanfer (San Francisco: Jossey-Bass, 2002), 20–63. However, the meaning of emotions is still being debated. See, for example, M. Cabanac, “What Is Emotion?” Behavioral Processes 60 (2002): 69–83; B. Russell and J. Eisenberg, “The Role of Cognition and Attitude in Driving Behavior: Elaborating on Affective Events Theory,” in Experiencing and Manag- ing Emotions in the Workplace, ed. N. M. Ashkanasy, C. E. J. Hartel, and W. J. Zerbe, Research on Emotion in Organiza- tions (Bingley, UK: Emerald Group, 2012), 203–24.
5. R. Kanfer and R. J. Klimoski, “Affect and Work: Looking Back to the Future,” in Emotions in the Workplace ed. R. G. Lord, R. J. Klimoski, and R. Kanfer (San Francisco: Jossey-Bass, 2002), 473–90; J. A. Russell, “Core Affect and the Psychological Construction of Emotion,” Psycho- logical Review 110, no. 1 (2003): 145–72.
6. R. Reisenzein, M. Studtmann, and G. Horstmann, “Coherence between Emotion and Facial Expression: Evidence from Laboratory Experiments,” Emotion Review 5, no. 1 (2013): 16–23.
7. R. B. Zajonc, “Emotions,” in Handbook of Social Psychol- ogy, ed. D. T. Gilbert, S. T. Fiske, and L. Gardner (New York: Oxford University Press, 1998), 591–634; P. Winkielman, “Bob Zajonc and the Nonconscious Emotion,” Emotion Review 2, no. 4 (2010): 353–62.
8. R. J. Larson, E. Diener, and R. E. Lucas, “Emotion: Models, Measures, and Differences,” in Emotions in the Workplace, ed. R. G. Lord, R. J. Klimoski, and R. Kanfer (San Francisco: Jossey-Bass, 2002), 64–113; L. F. Barrett et al., “The Experience of Emotion,” Annual Review of Psychology 58, no. 1 (2007): 373–403; M. Yik, J. A. Russell, and J. H. Steiger, “A 12-Point Circumplex Structure of Core Affect,” Emotion 11, no. 4 (2011): 705–31.
9. R. F. Baumeister, E. Bratslavsky, and C. Finkenauer, “Bad Is Stronger than Good,” Review of General Psychology 5, no. 4 (2001): 323–70; A. Vaish, T. Grossmann, and A. Woodward, “Not All Emotions Are Created Equal: The Negativity Bias in Social-Emotional Development,” Psychological Bulletin 134, no. 3 (2008): 383–403; B. E. Hilbig, “Good Things Don’t Come Easy (to Mind): Explaining Framing Effects in Judgments of Truth,” Experimental Psychology 59, no. 1 (2012): 38–46.
10. A. P. Brief, Attitudes in and around Organizations (Thou- sand Oaks, CA: Sage, 1998); A. H. Eagly and S. Chaiken, “The Advantages of an Inclusive Definition of Attitude,” Social Cognition 25, no. 5 (2007): 582–602; G. Bohner and N. Dickel, “Attitudes and Attitude Change,” Annual
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Wales Evening Post, 30 May 2012, 3; R. Evans, “’Our Success at Admiral Is All Thanks to Brilliant Staff,’” Western Mail (Cardiff, Wales), 2 January 2013, 1.
22. S. Bolton, C. and M. Houlihan, “Are We Having Fun Yet? A Consideration of Workplace Fun and Engage- ment,” Employee Relations 31, no. 6 (2009): 556–68.
23. E. Shearing, “Dixon Schwabl Focuses on Having Fun at Its Office Playground,” Democrat & Chronicle (Rochester, NY), 5 September 2010; E. Maltby, “Boring Meetings? Get out the Water Guns,” The Wall Street Journal, 7 January 2010.
24. S. Davies, “Razer Employees Wear Shorts, T-Shirts and Flip-Flops to Work,” Straits Times (Singapore), 10 May 2008; S. Long, “Meet the Chief Gamer,” Straits Times (Singapore), 8 February 2013.
25. N. Wijewardena, C. E. J. Hartel, and R. Samaratunge, “A Laugh a Day Is Sure to Keep the Blues Away: Managers’ Use of Humor and the Construction and Destruction of Employees’ Resilience,” in Emotions and Organizational Dynamism, ed. W. J. Zerbe, C. E. J. Hartel, and N. M. Ashkanasy, Research on Emotion in Organizations (Bradford: Emerald Group Publishing Limited, 2010), 259–78; C. Robert and J. E. Wilbanks, “The Wheel Model of Humor: Humor Events and Affect in Organiza- tions,” Human Relations 65, no. 9 (2012): 1071–99; J. Mesmer-Magnus, D. J. Glew, and C. Viswesvaran, “A Meta-Analysis of Positive Humor in the Workplace,” Journal of Managerial Psychology 27, no. 2 (2012): 155–90.
26. D. L. Collinson, “Managing Humour,” Journal of Man- agement Studies 39, no. 3 (2002): 269–88; K. Owler, R. Morrison, and B. Plester, “Does Fun Work? The Complexity of Promoting Fun at Work,” Journal of Man- agement and Organization 16, no. 3 (2010): 338–52.
27. M. McLaughlin, “Bosses Blind to Horrors of ‘Fun Days’,” Scotland on Sunday, 3 January 2010, 10; E. Lamm and M. D. Meeks, “Workplace Fun: The Moder- ating Effects of Generational Differences,” Employee Rela- tions 31, no. 6 (2009): 613–31; “Schumpeter: Down with Fun,” Economist Intelligence Unit—Executive Briefing (London), 22 September 2010; E. J. Romero and L. A. Arendt, “Variable Effects of Humor Styles on Organiza- tional Outcomes,” Psychological Reports 108, no. 2 (2011): 649–59.
28. Weiss and Cropanzano, “Affective Events Theory.” 29. L. Festinger, A Theory of Cognitive Dissonance (Evanston,
IL: Row, Peterson, 1957); A. D. Galinsky, J. Stone, and J. Cooper, “The Reinstatement of Dissonance and Psy- chological Discomfort Following Failed Affirmation,” European Journal of Social Psychology 30, no. 1 (2000): 123–47; J. Cooper, Cognitive Dissonance: Fifty Years of a Classic Theory (London: Sage, 2007).
30. G. R. Salancik, “Commitment and the Control of Organizational Behavior and Belief,” in New Directions in Organizational Behavior, ed. B. M. Staw and G. R. Salancik (Chicago: St. Clair, 1977), 1–54; J. M. Jarcho, E. T. Berkman, and M. D. Lieberman, “The Neural Ba- sis of Rationalization: Cognitive Dissonance Reduction During Decision-Making,” Social Cognitive and Affective Neuroscience 6, no. 4 (2011): 460–67.
31. T. A. Judge, E. A. Locke, and C. C. Durham, “The Dispo- sitional Causes of Job Satisfaction: A Core Evaluations Approach,” Research in Organizational Behavior 19
Promise and Prospects of an Emerging Discipline,” Journal of Organizational Behavior 31, no. 7 (2010): 1055–59.
13. D. Trafimow et al., “It Is Irrelevant, but It Matters: Using Confluence Theory to Predict the Influence of Beliefs on Evaluations, Attitudes, and Intentions,” European Journal of Social Psychology 42, no. 4 (2012): 509–20.
14. S. Orbell, “Intention-Behavior Relations: A Self-Regulation Perspective,” in Contemporary Perspectives on the Psychol- ogy of Attitudes, ed. G. Haddock and G. R. Maio (East Sussex, UK: Psychology Press, 2004), 145–68.
15. H. M. Weiss and R. Cropanzano, “Affective Events The- ory: A Theoretical Discussion of the Structure, Causes and Consequences of Affective Experiences at Work,” Research in Organizational Behavior 18(1996): 1–74; A. Bechara et al., “Deciding Advantageously before Knowing the Advantageous Strategy,” Science 275, no. 5304 (1997): 1293–95; H. A. Elfenbein, “Chapter 7: Emotion in Organizations,” Academy of Management Annals 1 (2007): 315–86.
16. J. A. Bargh and M. J. Ferguson, “Beyond Behaviorism: On the Automaticity of Higher Mental Processes,” Psy- chological Bulletin 126, no. 6 (2000): 925–45; J. M. George, “The Illusion of Will in Organizational Behavior Research: Nonconscious Processes and Job Design,” Jour- nal of Management 35, no. 6 (2009): 1318–39; K. I. Ruys and D. A. Stapel, “The Nonconscious Unfolding of Emotions,” European Review of Social Psychology 20(2009): 232–71; P. Winkielman and K. C. Berridge, “Nonconscious Emotion,” Current Directions in Psycho- logical Science 13, no. 3 (2004): 120–23.
17. A. R. Damasio, Descartes’ Error: Emotion, Reason, and the Human Brain (New York: Putnam Sons, 1994); P. Ekman, “Basic Emotions,” in Handbook of Cognition and Emotion, ed. T. Dalgleish and M. Power (San Francisco: Jossey-Bass, 1999), 45–60; J. E. LeDoux, “Emotion Cir- cuits in the Brain,” Annual Review of Neuroscience 23 (2000): 155–84; Damasio, The Feeling of What Happens: Body and Emotion in the Making of Consciousness; R. J. Dolan, “Emotion, Cognition, and Behavior,” Science 298, no. 5596 (2002): 1191–94.
18. N. Schwarz, “Emotion, Cognition, and Decision Mak- ing,” Cognition and Emotion 14, no. 4 (2000): 433–40; M. T. Pham, “The Logic of Feeling,” Journal of Consumer Psychology 14, no. 4 (2004): 360–69. One recent proposi- tion is that people’s confidence in their beliefs is also in- fluenced by their emotional experiences regarding those beliefs. See: Z. Memon and J. Treur, “On the Reciprocal Interaction between Believing and Feeling: An Adaptive Agent Modelling Perspective,” Cognitive Neurodynamics 4, no. 4 (2010): 377–94.
19. G. R. Maio, V. M. Esses, and D. W. Bell, “Examining Conflict between Components of Attitudes: Ambivalence and Inconsistency Are Distinct Constructs,” Canadian Journal of Behavioural Science 32, no. 2 (2000): 71–83.
20. P. C. Nutt, Why Decisions Fail (San Francisco, CA: Berrett- Koehler, 2002); S. Finkelstein, Why Smart Executives Fail (New York: Viking, 2003); P. C. Nutt, “Search During Decision Making,” European Journal of Operational Research 160(2005): 851–76.
21. M. Chahai, “Starv Performers Receive More than Ap- plause,” Marketing Week, 7 June 2012; R. Hall, “Admiral Tops Poll to Become the Best Employer in Britain,” South
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1998), Ch. 6. Also see: S. Safdar et al., “Variations of Emotional Display Rules within and across Cultures: A Comparison between Canada, USA, and Japan,” Canadian Journal of Behavioural Science 41, no. 1 (2009): 1–10.
39. W. J. Zerbe, “Emotional Dissonance and Employee Well-Being,” in Managing Emotions in the Workplace ed. N. M. Ashkanasy, W. J. Zerbe, and C. E. J. Hartel (Armonk, NY: M. E. Sharpe, 2002), 189–214; F. Cheung and C. Tang, “The Influence of Emotional Dissonance on Subjective Health and Job Satisfaction: Testing the Stress–Strain– Outcome Model,” Journal of Applied Social Psychology 40, no. 12 (2010): 3192–217; Grandey, Diefendorff, and Rupp, “Bringing Emotional Labor in Focus.”
40. N.-W. Chi et al., “Want a Tip? Service Performance as a Function of Emotion Regulation and Extraversion,” Journal of Applied Psychology 96, no. 6 (2011): 1337–46; S. Côté, I. Hideg, and G. A. van Kleef, “The Conse- quences of Faking Anger in Negotiations,” Journal of Experimental Social Psychology 49, no. 3 (2013): 453–63.
41. S. D. Pugh, M. Groth, and T. Hennig-Thurau, “Willing and Able to Fake Emotions: A Closer Examination of the Link between Emotional Dissonance and Employee Well-Being,” Journal of Applied Psychology 96, no. 2 (2011): 377–90; R. S. Rubin et al., “A Reconceptualiza- tion of the Emotional Labor Construct: On the Develop- ment of an Integrated Theory of Perceived Emotional Dissonance and Emotional Labor,” in Emotions in Orga- nizational Behavior, ed. C. Hartel, N. M. Ashkanasy, and W. Zerbe (Hoboken, NJ: Taylor and Francis, 2012), 189–211.
42. Zapf, “Emotion Work and Psychological Well-Being”; J. D. Kammeyer-Mueller et al., “A Meta-Analytic Struc- tural Model of Dispositonal Affectivity and Emotional Labor,” Personnel Psychology 66, no. 1 (2013): 47–90; H. Ozcelik, “An Empirical Analysis of Surface Acting in Intra-Organizational Relationships,” Journal of Organiza- tional Behavior 34, no. 3 (2013): 291–309. Deep acting is considered an adaptation of method acting used by professional actors.
43. M. Weinstein, “Emotional Evaluation,” Training, 29 July 2009.
44. J. D. Mayer, P. Salovey, and D. R. Caruso, “Models of Emotional Intelligence,” in Handbook of Human Intelli- gence, ed. R. J. Sternberg (New York: Cambridge Univer- sity Press, 2000), 396–420. This definition is also recognized by C. Cherniss, “Emotional Intelligence and Organizational Effectiveness,” in The Emotionally Intelligent Workplace, ed. C. Cherniss and D. Goleman (San Francisco: Jossey-Bass, 2001), 3–12; M. Zeidner, G. Matthews, and R. D. Roberts, “Emotional Intelligence in the Workplace: A Critical Review,” Applied Psychology: An International Review 53, no. 3 (2004): 371–99.
45. This model is very similar to Goleman’s revised emo- tional intelligence model. See D. Goleman, R. Boyatzis, and A. McKee, Primal Leadership (Boston: Harvard Busi- ness School Press, 2002), Ch. 3. Recent studies indicate that this model (when framed as abilities) provides the best fit to data. See: R. P. Tett and K. E. Fox, “Confirma- tory Factor Structure of Trait Emotional Intelligence in Student and Worker Samples,” Personality and Individual Differences 41 (2006): 1155–68; P. J. Jordan and S. A. Lawrence, “Emotional Intelligence in Teams: Development
(1997): 151–88; T. W. H. Ng and K. L. Sorensen, “Dispositional Affectivity and Work-Related Outcomes: A Meta-Analysis,” Journal of Applied Social Psychology 39, no. 6 (2009): 1255–87.
32. C. M. Brotheridge and A. A. Grandey, “Emotional Labor and Burnout: Comparing Two Perspectives of ‘People Work,” Journal of Vocational Behavior 60 (2002): 17–39; P. G. Irving, D. F. Coleman, and D. R. Bobocel, “The Moderating Effect of Negative Affectivity in the Proce- dural Justice-Job Satisfaction Relation,” Canadian Journal of Behavioural Science 37, no. 1 (2005): 20–32.
33. J. Schaubroeck, D. C. Ganster, and B. Kemmerer, “Does Trait Affect Promote Job Attitude Stability?,” Journal of Organizational Behavior 17 (1996): 191–96; C. Dormann and D. Zapf, “Job Satisfaction: A Meta-Analysis of Stabilities,” Journal of Organizational Behavior 22 (2001): 483–504.
34. J. A. Morris and D. C. Feldman, “The Dimensions, Antecedents, and Consequences of Emotional Labor,” Academy of Management Review 21(1996): 986–1010. This is a person-centered definition, which is supple- mented by other approaches to the topic. For recent reviews, see A. S. Wharton, “The Sociology of Emotional Labor,” Annual Review of Sociology 35, no. 1 (2009): 147–65; F. M. Peart, A. M. Roan, and N. M. Ashkanasy, “Trading in Emotions: A Closer Examination of Emo- tional Labor,” in Experiencing and Managing Emotions in the Workplace, ed. N. M. Ashkanasy, C. E. J. Hartel, and W. J. Zerbe, Research on Emotion in Organizations (Bingley, UK: Emerald Group, 2012), 279–304; A. A. Grandey, J. M. Diefendorff, and D. E. Rupp, “Bringing Emotional Labor in Focus: A Review and Integration of Three Research Issues,” in Emotional Labor in the 21st Century: Diverse Perspectives on Emotion Regulation at Work, ed. A. A. Grandey, J. M. Diefendorff, and D. E. Rupp, Se- ries in Organization and Management 2013), 3–28.
35. Morris and Feldman, “The Dimensions, Antecedents, and Consequences of Emotional Labor”; D. Zapf, “Emo- tion Work and Psychological Well-Being: A Review of the Literature and Some Conceptual Considerations,” Human Resource Management Review 12 (2002): 237–68.
36. “Reach for the Sky,” New Sunday Times (Kuala Lumpur), 16 November 2008, 4; C. Platt, “Inside Flight Attendant School,” WA Today (Perth), 24 February 2009.
37. A. E. Raz and A. Rafaeli, “Emotion Management in Cross-Cultural Perspective: ‘Smile Training’ in Japanese and North American Service Organizations,” Research on Emotion in Organizations 3 (2007): 199–220; D. Matsumoto, Seung Hee Yoo, and J. Fontaine, “Mapping Expressive Differences around the World,” Journal of Cross-Cultural Psychology 39, no. 1 (2008): 55–74; S. Ravid, A. Rafaeli, and A. Grandey, “Expressions of Anger in Israeli Workplaces: The Special Place of Customer Interactions,” Human Resource Management Review 20, no. 3 (2010): 224–34. Emotional display norms might also explain differences in aggression across cultures. See: N. Bergeron and B. H. Schneider, “Explaining Cross- National Differences in Peer-Directed Aggression: A Quantitative Synthesis,” Aggressive Behavior 31, no. 2 (2005): 116–37.
38. F. Trompenaars and C. Hampden-Turner, Riding the Waves of Culture, 2nd ed. (New York: McGraw-Hill,
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(2006): 21–36; D. Nelis et al., “Increasing Emotional In- telligence: (How) Is It Possible?” Personality and Individ- ual Differences 47, no. 1 (2009): 36–41; L. J. M. Zijlmans et al., “Training Emotional Intelligence Related to Treat- ment Skills of Staff Working with Clients with Intellec- tual Disabilities and Challenging Behaviour,” Journal of Intellectual Disability Research 55, no. 2 (2011): 219–30; D. Blanch-Hartigan, “An Effective Training to Increase Accurate Recognition of Patient Emotion Cues,” Patient Education and Counseling 89, no. 2 (2012): 274–80; J. Shaw, S. Porter, and L. ten Brinke, “Catching Liars: Training Mental Health and Legal Professionals to Detect High-Stakes Lies,” Journal of Forensic Psychiatry & Psychology 24, no. 2 (2013): 145–59.
54. D. A. Harrison, D. A. Newman, and P. L. Roth, “How Important Are Job Attitudes? Meta-Analytic Compari- sons of Integrative Behavioral Outcomes and Time Sequences,” Academy of Management Journal 49, no. 2 (2006): 305–25. Another recent study concluded that job satisfaction and organizational commitment are so highly correlated that they represent the same construct. See H. Le et al., “The Problem of Empirical Redundancy of Constructs in Organizational Research: An Empirical Investigation,” Organizational Behavior and Human Deci- sion Processes 112, no. 2 (2010): 112–25. They are also considered the two central work-related variables in the broader concept of happiness at work. See C. D. Fisher, “Happiness at Work,” International Journal of Manage- ment Reviews 12, no. 4 (2010): 384–412.
55. E. A. Locke, “The Nature and Causes of Job Satisfac- tion,” in Handbook of Industrial and Organizational Psy- chology, ed. M. Dunnette (Chicago: Rand McNally, 1976), 1297–350; H. M. Weiss, “Deconstructing Job Sat- isfaction: Separating Evaluations, Beliefs and Affective Ex- periences,” Human Resource Management Review, no. 12 (2002): 173–94. Some definitions still include emotion as an element of job satisfaction, whereas the definition presented in this book views emotion as a cause of job satisfaction. Also, this definition views job satisfaction as a “collection of attitudes,” not several “facets” of job satisfaction.
56. Ipsos-Reid, “Ipsos-Reid Global Poll Finds Major Differ- ences in Employee Satisfaction around the World,” in Ipsos-Reid News Release (Toronto 2001); International Survey Research, Employee Satisfaction in the World’s 10 Largest Economies: Globalization or Diversity? (Interna- tional Survey Research: Chicago, 2002); Watson Wyatt Worldwide, Malaysian Workers More Satisfied with Their Jobs than Their Companies’ Leadership and Supervision Practices (Kuala Lumpur: Watson Wyatt Worldwide, 2004); Kelly Global Workforce Index, American Workers Are Happy with Their Jobs and Their Bosses (Kelly Ser- vices: Troy, MI, November 2006).
57. T. W. Smith, Job Satisfaction in America: Trends and Socio- Demographic Correlates (National Opinion Research Cen- ter/University of Chicago: Chicago, August 2007); T. W. Smith, Trends in Well-Being, 1972–2010 (General Social Survey, NORC/University of Chicago: Chicago, March 2011). Similar consistently high levels of job satisfaction are reported by other major surveys. For a review, see K. Bowman and A. Rugg, The State of the American Workers 2010: Attitudes about Work in America
and Initial Validation of the Short Version of the Work- group Emotional Intelligence Profile (Weip-S),” Journal of Management & Organization 15 (2009): 452–69; D. L. Joseph and D. A. Newman, “Emotional Intelligence: An Integrative Meta-Analysis and Cascading Model,” Journal of Applied Psychology 95, no. 1 (2010): 54–78.
46. H. A. Elfenbein and N. Ambady, “Predicting Workplace Outcomes from the Ability to Eavesdrop on Feelings,” Journal of Applied Psychology 87, no. 5 (2002): 963–71.
47. The hierarchical nature of the four EI dimensions is dis- cussed by Goleman, but it is more explicit in the Salovey and Mayer model. See D. R. Caruso and P. Salovey, The Emotionally Intelligent Manager (San Francisco: Jossey-Bass, 2004). This hierarchy is also identified (without the self– other distinction) as a sequence by Joseph and Newman, “Emotional Intelligence.”
48. E. A. Locke, “Why Emotional Intelligence Is an Invalid Concept,” Journal of Organizational Behavior 26 (2005): 425–31; J. Antonakis, “’Emotional Intelligence’: What Does It Measure and Does It Matter for Leadership?” in LMX Leadership—Game-Changing Designs: Research- Based Tools, ed. G. B. Graen (Greenwich, CT: Informa- tion Age Publishing, 2009), 163–92; J. Antonakis, N. M. Ashkanasy, and M.T. Dasborough, “Does Leadership Need Emotional Intelligence?” Leadership Quarterly 20(2009): 247–61; M. Fiori and J. Antonakis, “The Ability Model of Emotional Intelligence: Searching for Valid Measures,” Personality and Individual Differences 50, no. 3 (2011): 329–34.
49. D. L. Reis et al., “Emotional Intelligence Predicts Indi- vidual Differences in Social Exchange Reasoning,” Neuro- Image 35, no. 3 (2007): 1385–91; C. Cherniss, “Emotional Intelligence: Toward Clarification of a Con- cept,” Industrial and Organizational Psychology 3, no. 2 (2010): 110–26; F. Walter, M. S. Cole, and R. H. Hum- phrey, “Emotional Intelligence: Sine Qua Non of Leader- ship or Folderol?” Academy of Management Perspectives 25, no. 1 (2011): 45–59.
50. Some studies have reported situations where EI has a lim- ited effect on individual performance. For example, see A. L. Day and S. A. Carroll, “Using an Ability-Based Measure of Emotional Intelligence to Predict Individual Performance, Group Performance, and Group Citizen- ship Behaviors,” Personality and Individual Differences 36 (2004): 1443–58; Z. Ivcevic, M. A. Brackett, and J. D. Mayer, “Emotional Intelligence and Emotional Creativ- ity,” Journal of Personality 75, no. 2 (2007): 199–236; J. C. Rode et al., “Emotional Intelligence and Individual Performance: Evidence of Direct and Moderated Effects,” Journal of Organizational Behavior 28, no. 4 (2007): 399–421.
51. L. Peterson, “USF Seeking Medical Students Nicer Than ‘House’,” Tampa Tribune, 20 June 2011.
52. R. Bar-On, Preliminary Report: A New US Air Force Study Explores the Cost-Effectiveness of Applying the Bar-on EQ-I, eiconsortium (August 2010); W. Gordon, “Climbing High for EI,” T + D 64, no. 8 (2010): 72–73; “Occupa- tional Analysts Influence Air Force Decision Makers,” US Fed News, 3 November 2010.
53. H. A. Elfenbein, “Learning in Emotion Judgments: Training and the Cross-Cultural Understanding of Facial Expressions,” Journal of Nonverbal Behavior 30, no. 1
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Symposium),” in Annual Conference of the Administrative Sciences Association of Canada, Organizational Behaviour Division (Halifax, 2008).
66. A. O. Hirschman, Exit, Voice, and Loyalty: Responses to Decline in Firms, Organizations, and States (Cambridge, MA: Harvard University Press, 1970); E. A. Hoffmann, “Exit and Voice: Organizational Loyalty and Dispute Resolution Strategies,” Social Forces 84, no. 4 (2006): 2313–30.
67. J. D. Hibbard, N. Kumar, and L. W. Stern, “Examining the Impact of Destructive Acts in Marketing Channel Relationships,” Journal of Marketing Research 38 (2001): 45–61; J. Zhou and J. M. George, “When Job Dissatis- faction Leads to Creativity: Encouraging the Expression of Voice,” Academy of Management Journal 44 (2001): 682–96.
68. M. J. Withey and I. R. Gellatly, “Situational and Dispo- sitional Determinants of Exit, Voice, Loyalty and Ne- glect,” Proceedings of the Administrative Sciences Association of Canada, Organizational Behaviour Division (1998); D. C. Thomas and K. Au, “The Effect of Cul- tural Differences on Behavioral Responses to Low Job Satisfaction,” Journal of International Business Studies 33, no. 2 (2002): 309–26; S. F. Premeaux and A. G. Bedeian, “Breaking the Silence: The Moderating Effects of Self-Monitoring in Predicting Speaking up in the Work- place,” Journal of Management Studies 40, no. 6 (2003): 1537–62; D. J. Travis, R. J. Gomez, and M. E. Mor Barak, “Speaking up and Stepping Back: Examining the Link between Employee Voice and Job Neglect,” Children and Youth Services Review 33, no. 10 (2011): 1831–41.
69. V. Venkataramani and S. Tangirala, “When and Why Do Central Employees Speak Up? An Examination of Mediating and Moderating Variables,” Journal of Applied Psychology 95, no. 3 (2010): 582–91.
70. T. A. Judge et al., “The Job Satisfaction–Job Performance Relationship: A Qualitative and Quantitative Review,” Psychological Bulletin 127, no. 3 (2001): 376–407; C. D. Fisher, “Why Do Lay People Believe that Satisfaction and Performance Are Correlated? Possible Sources of a Com- monsense Theory,” Journal of Organizational Behavior 24, no. 6 (2003): 753–77; Saari and Judge, “Employee Atti- tudes and Job Satisfaction.” Other studies report stronger correlations with job performance when both the belief and feeling components of job satisfaction are consistent with each other and when overall job attitude (satisfac- tion and commitment combined) is being measured. See D. J. Schleicher, J. D. Watt, and G. J. Greguras, “Reexam- ining the Job Satisfaction-Performance Relationship: The Complexity of Attitudes,” Journal of Applied Psychology 89, no. 1 (2004): 165–77; Harrison, Newman, and Roth, “How Important Are Job Attitudes?” The positive relationship between job satisfaction and employee per- formance is also consistent with emerging research on the outcomes of positive organizational behavior. For exam- ple, see J. R. Sunil, “Enhancing Employee Performance through Positive Organizational Behavior,” Journal of Applied Social Psychology 38, no. 6 (2008): 1580–600.
71. However, panel studies suggest that satisfaction has a stronger effect on performance than the other way around. For a summary, see Fisher, “Happiness at Work.”
(American Enterprise Institute for Public Policy Research: Washington, DC, August 2010).
58. Employee Commitment & Personal Relationships in the Workplace, Randstad workmonitor (Randstad Holding nv: Amsterdam, the Netherlands, May-June 2012). Survey data were collected from a minimum of 400 interviews per country of adults working 24 hours or more per week. Respondents were asked: “How satisfied are you in general working for your current employer?”
59. L. Saad, Job Security Slips in U.S. Worker Satisfaction Rankings (Gallup, Inc.: Princeton, NJ, 27 August 2009); Employee Engagement Report 2011 (BlessingWhite: Princeton, NJ, 2011). A recent Kelly Services Workforce Index survey reported that 66 percent of the 170,000 respondents in 30 countries plan to look for a job with an- other organization within the next year. See: Kelly Services, Acquisition and Retention in the War for Talent, Kelly Global Workforce Index (Kelly Services: Troy, MI, April 2012).
60. The problems with measuring attitudes and values across cultures are discussed by L. Saari and T. A. Judge, “Em- ployee Attitudes and Job Satisfaction “ Human Resource Management 43, no. 4 (2004): 395–407; A. K. Uskul et al., “How Successful You Have Been in Life Depends on the Response Scale Used: The Role of Cultural Mindsets in Pragmatic Inferences Drawn from Question Format,” Social Cognition 31, no. 2 (2013): 222–36.
61. H. Rao and R. I. Sutton, “Innovation Lessons from Pixar: An Interview with Oscar-Winning Director Brad Bird,” McKinsey Quarterly (2008): 1–9.
62. For a review of the various job satisfaction outcome theo- ries, see Dalal, “Job Attitudes: Cognition and Affect.”
63. M. J. Withey and W. H. Cooper, “Predicting Exit, Voice, Loyalty, and Neglect,” Administrative Science Quarterly, no. 34 (1989): 521–39; W. H. Turnley and D. C. Feldman, “The Impact of Psychological Contract Violations on Exit, Voice, Loyalty, and Neglect,” Human Relations, no. 52 (1999): 895–922. Subdimensions of silence and voice also exist. See L. van Dyne, S. Ang, and I. C. Botero, “Conceptualizing Employee Silence and Employee Voice as Multidimensional Constructs,” Journal of Management Studies 40, no. 6 (2003): 1359–92.
64. T. R. Mitchell, B. C. Holtom, and T. W. Lee, “How to Keep Your Best Employees: Developing an Effective Retention Policy,” Academy of Management Executive 15 (2001): 96–108; C. P. Maertz and M. A. Campion, “Profiles of Quitting: Integrating Process and Content Turnover Theory,” Academy of Management Journal 47, no. 4 (2004): 566–82; K. Morrell, J. Loan-Clarke, and A. Wilkinson, “The Role of Shocks in Employee Turnover,” British Journal of Management 15 (2004): 335–49; B. C. Holtom, T. R. Mitchell, and T. W. Lee, “Increasing Human and Social Capital by Applying Job Embeddedness Theory,” Organizational Dynamics 35, no. 4 (2006): 316–31.
65. B. S. Klaas, J. B. Olson-Buchanan, and A.-K. Ward, “The Determinants of Alternative Forms of Workplace Voice: An Integrative Perspective,” Journal of Management 38, no. 1 (2012): 314–45. For a critique and explanation for historical errors in the EVLN model’s development, see: S. L. McShane, “Reconstructing the Meaning and Di- mensionality of Voice in the Exit-Voice-Loyalty-Neglect Model (Paper Presented in the Voice and Loyalty”
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Model of Organizational Commitment,” Journal of Applied Psychology 93, no. 1 (2008): 70–83; H. J. Klein, J. C. Molloy, and C. T. Brinsfield, “Reconceptualizing Workplace Commitment to Redress a Stretched Construct: Revisiting Assumptions and Removing Confounds,” Academy of Management Review 37, no. 1 (2012): 130–51.
77. Data provided in several country-specific news releases from Kelly Services. For a white paper summary of the survey, see: Kelly Services, Employee Loyalty Rises During Global Economic Recession, Kelly International Workforce Survey Finds (Kelly Services: Troy, MI, 8 March 2010).
78. M. Taing et al., “The Multidimensional Nature of Continuance Commitment: Commitment Owing to Economic Exchanges Versus Lack of Employment Alternatives,” Journal of Business and Psychology 26, no. 3 (2011): 269–84; C. Vandenberghe and A. Panaccio, “Perceived Sacrifice and Few Alternatives Commitments: The Motivational Underpinnings of Continuance Com- mitment’s Subdimensions,” Journal of Vocational Behavior 81, no. 1 (2012): 59–72.
79. J. P. Meyer et al., “Affective, Continuance, and Normative Commitment to the Organization: A Meta-Analysis of Antecedents, Correlates, and Consequences,” Journal of Vocational Behavior 61 (2002): 20–52; M. Riketta, “Attitudinal Organizational Commitment and Job Performance: A Meta-Analysis,” Journal of Organizational Behavior 23 (2002): 257–66; J. P. Meyer and E. R. Maltin, “Employee Commitment and Well-Being: A Critical Review, Theoretical Framework and Research Agenda,” Journal of Vocational Behavior 77, no. 2 (2010): 323–37.
80. J. P. Meyer et al., “Organizational Commitment and Job Performance: It’s the Nature of the Commitment that Counts,” Journal of Applied Psychology 74 (1989): 152–56; A. A. Luchak and I. R. Gellatly, “What Kind of Commit- ment Does a Final-Earnings Pension Plan Elicit?” Rela- tions Industrielles 56 (2001): 394–417; Z. X. Chen and A. M. Francesco, “The Relationship between the Three Components of Commitment and Employee Perfor- mance in China,” Journal of Vocational Behavior 62, no. 3 (2003): 490–510; H. Gill et al., “Affective and Continu- ance Commitment and Their Relations with Deviant Workplace Behaviors in Korea,” Asia Pacific Journal of Management 28, no. 3 (2011): 595–607. The negative effect on performance might depend on the type of con- tinuance commitment. See Taing et al., “The Multidi- mensional Nature of Continuance Commitment.”
81. J. E. Finegan, “The Impact of Person and Organizational Values on Organizational Commitment,” Journal of Occupational and Organizational Psychology 73 (2000): 149–69; A. Panaccio and C. Vandenberghe, “Perceived Organizational Support, Organizational Commitment and Psychological Well-Being: A Longitudinal Study,” Journal of Vocational Behavior 75, no. 2 (2009): 224–36.
82. A. L. Kristof-Brown, R. D. Zimmerman, and E. C. Johnson, “Consequences of Individuals’ Fit at Work: A Meta- Analysis of Person-Job, Person-Organization, Person- Group, and Person-Supervisor Fit,” Personnel Psychology 58, no. 2 (2005): 281–342; J. R. Edwards, “Chapter 4: Person-Environment Fit in Organizations: An Assess- ment of Theoretical Progress,” Academy of Management Annals 2 (2008): 167–230; M. E. Bergman et al., “An
72. V. Naidu, “HCL Tech: Leaders of Indian Companies Are Amongst the Sharpest, Smartest in the World,” Times of India (Mumbai), 25 April 2013; E. Sapong, “Wegmans Ranked among Best Places to Work for 16th Straight Year,” Buffalo News, 16 January 2013; L. Wirthman, “Container Store Moves Ahead with Superb Communi- cations among Employees,” Denver Post, 21 April 2013.
73. J. Mossman, “Employee-Friendly Workplace Culture a Key to Company Success,” Denver Post, 21 April 2013.
74. J. I. Heskett, W. E. Sasser, and L. A. Schlesinger, The Service Profit Chain (New York: Free Press, 1997); S. P. Brown and S. K. Lam, “A Meta-Analysis of Relationships Linking Employee Satisfaction to Customer Responses,” Journal of Retailing 84, no. 3 (2008): 243–55; T. J. Gerpott and M. Paukert, “The Relationship between Employee Satisfaction and Customer Satisfaction: A Meta-Analysis (Der Zusammenhang Zwischen Mitarbeiter- Und Kun- denzufriedenheit: Eine Metaanalyse),” Zeitschrift für Personalforschung 25, no. 1 (2011): 28–54; R. W. Y. Yee, A. C. L. Yeung, and T. C. E. Cheng, “The Service-Profit Chain: An Empirical Analysis in High-Contact Service Industries,” International Journal of Production Economics 130, no. 2 (2011): 236–45; H. Evanschitzky, F.v. Wangenheim, and N. V. Wünderlich, “Perils of Manag- ing the Service Profit Chain: The Role of Time Lags and Feedback Loops,” Journal of Retailing 88, no. 3 (2012): 356–66; Y. Hong et al., “Missing Link in the Service Profit Chain: A Meta-Analytic Review of the Anteced- ents, Consequences, and Moderators of Service Climate,” Journal of Applied Psychology 98, no. 2 (2013): 237–67.
75. W.-C. Tsai and Y.-M. Huang, “Mechanisms Linking Employee Affective Delivery and Customer Behavioral Intentions,” Journal of Applied Psychology 87, no. 5 (2002): 1001–08; P. Guenzi and O. Pelloni, “The Impact of Interpersonal Relationships on Customer Satisfaction and Loyalty to the Service Provider,” International Journal of Service Industry Management 15, no. 3–4 (2004): 365–84; S. J. Bell, S. Auh, and K. Smalley, “Customer Relationship Dynamics: Service Quality and Customer Loyalty in the Context of Varying Levels of Customer Expertise and Switching Costs,” Journal of the Academy of Marketing Science 33, no. 2 (2005): 169–83; P. B. Barger and A. A. Grandey, “Service with a Smile and Encounter Satisfaction: Emotional Contagion and Appraisal Mecha- nisms,” Academy of Management Journal 49, no. 6 (2006): 1229–38. On the reciprocal effect, see E. Kim and D. J. Yoon, “Why Does Service with a Smile Make Employees Happy? A Social Interaction Model,” Journal of Applied Psychology 97, no. 5 (2012): 1059–67.
76. R. T. Mowday, L. W. Porter, and R. M. Steers, Employee Organization Linkages: The Psychology of Commitment, Absenteeism, and Turnover (New York: Academic Press, 1982); J. P. Meyer, “Organizational Commitment,” International Review of Industrial and Organizational Psychology 12(1997): 175–228. The definition and di- mensions of organizational commitment continue to be debated. Some writers even propose that “affective com- mitment” refers only to one’s psychological attachment to and involvement in the organization, whereas “identifica- tion” with the organization is a distinct concept further along a continuum of bonds. See O. N. Solinger, W. van Olffen, and R. A. Roe, “Beyond the Three-Component
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Stress Management,” in Principles and Practice of Stress Management, ed. P. M. Lehrer, R. L. Woolfolk, and W. E. Sime (New York: Guilford Press, 2007), 3–15.
89. Finegan, “The Impact of Person and Organizational Values on Organizational Commitment”; Dougall and Baum, “Stress, Coping, and Immune Function”; R. S. Lazarus, Stress and Emotion: A New Synthesis (New York: Springer Publishing, 2006); L. W. Hunter and S. M. B. Thatcher, “Feeling the Heat: Effects of Stress, Commit- ment, and Job Experience on Job Performance,” Academy of Management Journal 50, no. 4 (2007): 953–68.
90. W. Lester, “Poll: Stress Knows Few Boundaries for People in Industrial Democracies,” USA Today, 20 December 2006; “Survey Reveals 77% of Americans Stressed About Something at Work,” news release (Los Angeles: PR Newswire, 30 March 2011); Leger Marketing, CBC: The Health of Canadians (Leger Marketing: Toronto, 2011); Right Management, “Most Employees Say Their Work- place Is Stressful,” news release (Philadelphia: Right Management, 30 April 2012).
91. Quick et al., Preventive Stress Management in Organiza- tions, pp. 5–6; B. L. Simmons and D. L. Nelson, “Eustress at Work: The Relationship between Hope and Health in Hospital Nurses,” Health Care Management Review 26, no. 4 (2001): 7ff. The eustress survey is reported in: Tow- ers Watson, “Debunking Workforce Myths” (2008).
92. H. Selye, “A Syndrome Produced by Diverse Nocuous Agents,” Nature 138, no. 1 (1936): 32; H. Selye, Stress without Distress (Philadelphia: J. B. Lippincott, 1974). For the history of the word stress, see R. M. K. Keil, “Coping and Stress: A Conceptual Analysis,” Journal of Advanced Nursing 45, no. 6 (2004): 659–65.
93. S. E. Taylor, R. L. Repetti, and T. Seeman, “Health Psychology: What Is an Unhealthy Environment and How Does It Get under the Skin?” Annual Review of Psychology 48 (1997): 411–47.
94. D. Ganster, M. Fox, and D. Dwyer, “Explaining Em- ployees’ Health Care Costs: A Prospective Examination of Stressful Job Demands, Personal Control, and Physio- logical Reactivity,” Journal of Applied Psychology 86 (2001): 954–64; M. Kivimaki et al., “Work Stress and Risk of Cardiovascular Mortality: Prospective Cohort Study of Industrial Employees,” British Medical Journal 325 (2002): 857–60; A. Rosengren et al., “Association of Psychosocial Risk Factors with Risk of Acute Myocardial Infarction in 11 119 Cases and 13 648 Controls from 52 Countries (the Interheart Study): Case-Control Study,” The Lancet 364, no. 9438 (2004): 953–62; S. Andrew and S. Ayers, “Stress, Health, and Illness,” in The Sage Handbook of Health Psychology, ed. S. Sutton, A. Baum, and M. Johnston (London: Sage, 2004), 169–96.
95. R. C. Kessler, “The Effects of Stressful Life Events on Depression,” Annual Review of Psychology 48 (1997): 191–214; M. S. Hershcovis et al., “Predicting Workplace Aggression: A Meta-Analysis,” Journal of Applied Psychol- ogy 92, no. 1 (2007): 228–38.
96. C. Maslach, W. B. Schaufeli, and M. P. Leiter, “Job Burn- out,” Annual Review of Psychology 52 (2001): 397–422; J. R. B. Halbesleben and M. R. Buckley, “Burnout in Organizational Life,” Journal of Management 30, no. 6 (2004): 859–79; G. M. Alarcon, “A Meta-Analysis of Burnout with Job Demands, Resources, and Attitudes,”
Event-Based Perspective on the Development of Com- mitment,” Human Resource Management Review 23, no. 2 (2013): 148–60.
83. D. M. Rousseau et al., “Not so Different after All: A Cross-Discipline View of Trust,” Academy of Management Review 23(1998): 393–404.
84. D. K. Datta et al., “Causes and Effects of Employee Downsizing: A Review and Synthesis,” Journal of Man- agement 36, no. 1 (2010): 281–348.
85. Similar concepts on information acquisition are found in socialization and organizational change research. See, for example, P. Bordia et al., “Uncertainty During Organiza- tional Change: Types, Consequences, and Management Strategies,” Journal of Business and Psychology 18, no. 4 (2004): 507–32; H. D. Cooper-Thomas and N. Ander- son, “Organizational Socialization: A Field Study into Socialization Success and Rate,” International Journal of Selection and Assessment 13, no. 2 (2005): 116–28; T. N. Bauer, “Newcomer Adjustment During Organizational Socialization: A Meta-Analytic Review of Antecedents, Outcomes, and Methods,” Journal of Applied Psychology 92, no. 3 (2007): 707–21.
86. T. S. Heffner and J. R. Rentsch, “Organizational Com- mitment and Social Interaction: A Multiple Constituen- cies Approach,” Journal of Vocational Behavior 59 (2001): 471–90.
87. J. Pierce, L. T. Kostova, and K. T. Dirks, “Toward a The- ory of Psychological Ownership in Organizations,” Acad- emy of Management Review 26, no. 2 (2001): 298–310; M. Mayhew et al., “A Study of the Antecedents and Con- sequences of Psychological Ownership in Organizational Settings,” Journal of Social Psychology 147, no. 5 (2007): 477–500; T.-S. Han, H.-H. Chiang, and A. Chang, “Employee Participation in Decision Making, Psycholog- ical Ownership and Knowledge Sharing: Mediating Role of Organizational Commitment in Taiwanese High-Tech Organizations,” International Journal of Human Resource Management 21, no. 12 (2010): 2218–33.
88. J. C. Quick et al., Preventive Stress Management in Orga- nizations (Washington, DC: American Psychological As- sociation, 1997), 3–4; R. S. DeFrank and J. M. Ivancevich, “Stress on the Job: An Executive Update,” Academy of Management Executive 12(1998): 55–66; A. L. Dougall and A. Baum, “Stress, Coping, and Immune Function,” in Handbook of Psychology, ed. M. Gallagher and R. J. Nelson (Hoboken, NJ: John Wiley & Sons, 2003), 441–55. There are at least three schools of thought regarding the meaning of stress, and some re- views of stress literature describe these schools without pointing to any one as the preferred definition. One re- viewer concluded that the stress concept is so broad that it should be considered an umbrella concept, capturing a broad array of phenomena and providing a simple term for the public to use. See T. A. Day, “Defining Stress as a Prelude to Mapping Its Neurocircuitry: No Help from Allostasis,” Progress in Neuro-Psychopharmacology and Biological Psychiatry 29, no. 8 (2005): 1195–200; R. Cropanzano and A. Li, “Organizational Politics and Workplace Stress,” in Handbook of Organizational Politics, ed. E. Vigoda-Gadot and A. Drory (Cheltenham, UK: Edward Elgar, 2006), 139–60; R. L. Woolfolk, P. M. Lehrer, and L. A. Allen, “Conceptual Issues Underlying
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Journal of Research in Personality 37 (2003): 169–204; S. Folkman and J. T. Moskowitz, “Coping: Pitfalls and Promise,” Annual Review of Psychology 55 (2004): 745–74; C. A. Thompson et al., “On the Importance of Coping: A Model and New Directions for Research on Work and Family,” Research in Occupational Stress and Well-Being 6 (2007): 73–113.
108. S. E. Taylor et al., “Psychological Resources, Positive Illusions, and Health,” American Psychologist 55, no. 1 (2000): 99–109; F. Luthans and C. M. Youssef, “Emerg- ing Positive Organizational Behavior,” Journal of Manage- ment 33, no. 3 (2007): 321–49; P. Steel, J. Schmidt, and J. Shultz, “Refining the Relationship between Personality and Subjective Well-Being,” Psychological Bulletin 134, no. 1 (2008): 138–61; G. Alarcon, K. J. Eschleman, and N. A. Bowling, “Relationships between Personality Vari- ables and Burnout: A Meta-Analysis,” Work & Stress 23, no. 3 (2009): 244–63; R. Kotov et al., “Linking ‘Big’ Personality Traits to Anxiety, Depressive, and Substance Use Disorders: A Meta-Analysis,” Psychological Bulletin 136, no. 5 (2010): 768–821.
109. G. A. Bonanno, “Loss, Trauma, and Human Resilience: Have We Underestimated the Human Capacity to Thrive after Extremely Aversive Events?” American Psychologist 59, no. 1 (2004): 20–28; F. Luthans, C. M. Youssef, and B. J. Avolio, Psychological Capital: Develop- ing the Human Competitive Edge (New York: Oxford Uni- versity Press, 2007).
110. J. T. Spence and A. S. Robbins, “Workaholism: Defini- tion, Measurement and Preliminary Results,” Journal of Personality Assessment 58 (1992): 160–78; R. J. Burke, “Workaholism in Organizations: Psychological and Physical Well-Being Consequences,” Stress Medicine 16, no. 1 (2000): 11–16; I. Harpaz and R. Snir, “Workahol- ism: Its Definition and Nature,” Human Relations 56 (2003): 291–319; R. J. Burke, A. M. Richardson, and M. Martinussen, “Workaholism among Norwegian Se- nior Managers: New Research Directions,” International Journal of Management 21, no. 4 (2004): 415–26; T. W. H. Ng, K. L. Sorensen, and D. C. Feldman, “Di- mensions, Antecedents, and Consequences of Workahol- ism: A Conceptual Integration and Extension,” Journal of Organizational Behavior 28 (2007): 111–36.
111. M. Siegall and L. L. Cummings, “Stress and Organiza- tional Role Conflict,” Genetic, Social, and General Psychology Monographs 12 (1995): 65–95.
112. L. T. Eby et al., “Work and Family Research in IO/OB: Content Analysis and Review of the Literature (1980– 2002),” Journal of Vocational Behavior 66, no. 1 (2005): 124–97.
113. N. Davidson, “Vancouver Developer Looks to Make Video Games without Burning out Staff,” Canadian Press, 21 February 2006; F. Jossi, “Clocking Out,” HRMagazine, June 2007, 46–50; American Psychological Association, “San Jorge Children’s Hospital: A Culture of Collaboration and Care,” news release (Washington, DC: 2011).
114. S. R. Madsen, “The Effects of Home-Based Teleworking on Work-Family Conflict,” Human Resource Development Quarterly 14, no. 1 (2003): 35–58; S. Raghuram and B. Wiesenfeld, “Work-Nonwork Conflict and Job Stress among Virtual Workers,” Human Resource Management 43, no. 2/3 (2004): 259–77.
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97. K. Danna and R. W. Griffin, “Health and Well-Being in the Workplace: A Review and Synthesis of the Litera- ture,” Journal of Management (1999): 357–84.
98. This is a slight variation of the definition in the Quebec anti-harassment legislation. See http://www.cnt.gouv. qc.ca/en/in-case-of/psychological-harassment-at-work/ index.html. For related definitions and discussion of workplace incivility, see H. Cowiea et al., “Measuring Workplace Bullying,” Aggression and Violent Behavior 7 (2002): 33–51; C. M. Pearson and C. L. Porath, “On the Nature, Consequences and Remedies of Workplace Incivility: No Time for ‘Nice’? Think Again,” Academy of Management Executive 19, no. 1 (2005): 7–18. For recent discussions of workplace harassment legislation in the United States, see D. C. Yamada, “Workplace Bully and American Employment Law: A Ten-Year Progress Report and Assessment,” Comparative Labor Law and Policy Journal 32, no. 1 (2010): 251–84.
99. “Power Harassment Cases Rising,” Daily Yomiuri (Tokyo), 10 June 2009, 2; H. Mulholland, “Bullied Teachers Fear Culture of ‘Macho Managers,’” The Observer (London), 8 April 2012, 4; “Monster Global Poll Reveals Workplace Bullying Is Endemic” (London: OnRec, 2011), http:// www.onrec.com (accessed 26 June 2012).
100. P. McDonald, “Workplace Sexual Harassment 30 Years On: A Review of the Literature,” International Journal of Management Reviews 14, no. 1 (2012): 1–17.
101. D. Ulrich and W. Ulrich, The Why of Work: How Great Leaders Build Abundant Organizations that Win (New York: McGraw-Hill, 2010), p. v.
102. E. Galinsky et al., Overwork in America: When the Way We Work Becomes Too Much (New York: Families and Work Institute, March 2005); A. Fung, “Poll: 40% Haven’t Vacationed in 2 Years,” Richmond Times- Dispatch, 1 July 2010, B3.
103. P. Elmer-DeWitt, “Foxconn’s 11th: Death by Exhaus- tion,” CNN Money, 4 June 2010; M. Liang, “Younfg- woman’s Death Raises Concer of Overwork,” Beijing Today, 22 April 2011; L. Xu, “A Hard Day’s Night,” China Daily, 12 July 2012, 20; “Poll Triggers Work Pressure Concern in China,” Xinhua news agency (Beijing), 19 October 2012; Regus, A Better Balance (Luxembourg: Regus, May 2012); Y. Yuan, “White Collars Overworked,” Beijing Review, 20 June 2013.
104. R. Drago, D. Black, and M. Wooden, The Persistence of Long Work Hours, Melbourne Institute Working Paper Series, Melbourne Institute of Applied Economic and Social Research, University of Melbourne (Melbourne: August 2005); L. Golden, “A Brief History of Long Work Time and the Contemporary Sources of Overwork,” Journal of Business Ethics 84 (2009): 217–27.
105. R. Karasek and T. Theorell, Healthy Work: Stress, Produc- tivity, and the Reconstruction of Working Life (New York: Basic Books, 1990); N. Turner, N. Chmiel, and M. Walls, “Railing for Safety: Job Demands, Job Con- trol, and Safety Citizenship Role Definition,” Journal of Occupational Health Psychology 10, no. 4 (2005): 504–12.
106. Lazarus, Stress and Emotion: A New Synthesis, Ch. 5. 107. M. Zuckerman and M. Gagne, “The Cope Revised:
Proposing a 5-Factor Model of Coping Strategies,”
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M. M. Bennett, “Occupational Stress and Failures of So- cial Support: When Helping Hurts,” Journal of Occupa- tional Health Psychology 15, no. 1 (2010): 45–59; B. A. Scott et al., “A Daily Investigation of the Role of Man- ager Empathy on Employee Well-Being,” Organizational Behavior and Human Decision Processes 113, no. 2 (2010): 127–40.
CHAPTER 5
1. K. Allen, “The Art of Engagement,” (Bonn, Germany: Deutsche Post DHL, 12 August 2013), http://www.dpdhl. com/en/logistics_around_us/from_our_divisions/ken_ allen_the_art_of_engagement.html (accessed 21 August 2013); “DHL Rewards Star Employee with a Trip to Vic- toria Falls, Zambia,” All Africa, 17 April 2013; “Rewards to Spur on Latent Talent,” Cape Argus (South Africa), 13 February 2013, E1; “DHL Africa Puts Employee Recognition at the Centre of Its Business,” African Press Association, 19 June 2013.
2. C. C. Pinder, Work Motivation in Organizational Behav- ior (Upper Saddle River, NJ: Prentice-Hall, 1998); R. M. Steers, R. T. Mowday, and D. L. Shapiro, “The Future of Work Motivation Theory,” Academy of Management Review 29(2004): 379–87.
3. W. H. Macey and B. Schneider, “The Meaning of Em- ployee Engagement,” Industrial and Organizational Psy- chology 1(2008): 3–30; A. B. Bakker and W. B. Schaufeli, “Positive Organizational Behavior: Engaged Employees in Flourishing Organizations,” Journal of Organizational Behavior 29, no. 2 (2008): 147–54.
4. J. Engen, “Are Your Employees Truly Engaged?” Chief Executive, March 2008, 42; S. Flander, “Terms of En- gagement,” Human Resource Executive Online, January 2008; D. Macleod and N. Clarke, Engaging for Success: Enhancing Performance through Employee Engagement (London: UK Government, Department for Business Innovation and Skills, July 2009).
5. M. Shave, “The ‘Too Easy’ Way to Move Forward,” The Australian, 28 May 2011, 5; “Winners of 2011 and What They Say,” The Australian, 28 May 2011, 9.
6. Gallup Consulting, The Gallup Q12-Employee Engagement- Poll 2008 Results, Gallup Consulting (February 2009); A. Fox, “Raising Engagement,” HRMagazine, May 2010, 34; BlessingWhite, Employee Engagement Report 2011, BlessingWhite (Princeton, NJ: January 2011).
7. State of the American Workplace: Employee Engagement Insights for U.S. Business Leaders, Gallup (Washington, DC: 13 June 2013).
8. Several sources attempt to identify and organize the drivers of employee engagement. See, for example: D. Robinson, S. Perryman, and S. Hayday, The Drivers of Employee Engagement (Institute for Employment Studies: Brighton, UK, 2004); W. H. Macey et al., Employee Engagement: Tools for Analysis, Practice, and Competitive Advantage (Malden, MA: Wiley-Blackwell, 2009); Macleod and Clarke, Engaging for Success: Enhancing Performance through Employee Engagement; M. Stairs and M. Galpin, “Positive Engagement: From Employee Engagement to Workplace Happiness,” in Oxford Handbook of Positive Psychology of Work, ed. P. A. Linley, S. Harrington, and N. Garcea (New York: Oxford University Press, 2010), 155–72.
115. Organization for Economic Co-operation and Develop- ment, Babies and Bosses: Reconciling Work and Family Life, Vol. 4 (Canada, Finland, Sweden and the United Kingdom) (Paris: OECD Publishing, 2005); J. Heymann et al., The Work, Family, and Equity Index: How Does the United States Measure Up? (Montreal: Project on Global Working Families, Institute for Health and Social Policy, June 2007).
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117. “SAS among Norway’s Best Workplaces Again,” Leisure & Travel Week, 6 April 2013, 137; M. C. Crowley, “How SAS Became the World’s Best Place to Work,” Fast Company, 22 January 2013.
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CHAPTER 6
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77. The positive relationship between these structural em- powerment conditions and psychological empowerment is reported in H. K. S. Laschinger et al., “A Longitudinal Analysis of the Impact of Workplace Empowerment on Work Satisfaction,” Journal of Organizational Behavior 25, no. 4 (2004): 527–45.
78. Y. Melhem, “The Antecedents of Customer-Contact Em- ployees’ Empowerment,” Employee Relations 26, no. 1/2 (2004): 72–93; M. T. Maynard, L. L. Gilson, and J. E. Mathieu, “Empowerment—Fad or Fab? A Multilevel Review of the Past Two Decades of Research,” Journal of Management 38, no. 4 (2012): 1231–81.
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Organizational Decision Making (Homewood, IL: Irwin, 1983), Ch. 3.
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CHAPTER 7
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CHAPTER 8
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5. J. R. Hollenbeck, B. Beersma, and M. E. Schouten, “Beyond Team Types and Taxonomies: A Dimensional Scaling Conceptualization for Team Description,” Academy of Management Review 37, no. 1 (2012): 82–106.
6. S. I. Tannenbaum et al., “Teams Are Changing: Are Re- search and Practice Evolving Fast Enough?” Industrial and Organizational Psychology 5, no. 1 (2012): 2–24; R. Wageman, H. Gardner, and M. Mortensen, “The Changing Ecology of Teams: New Directions for Teams Research,” Journal of Organizational Behavior 33, no. 3 (2012): 301–15.
7. R. A. Guzzo and M. W. Dickson, “Teams in Organiza- tions: Recent Research on Performance and Effective- ness,” Annual Review of Psychology 47(1996): 307–38; L. R. Offerman and R. K. Spiros, “The Science and Practice of Team Development: Improving the Link,” Academy of Management Journal 44(2001): 376–92.
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95. M. O’Brien, “Long-Distance Relationship Troubles,” Human Resource Executive Online, 7 July 2009.
96. Long-Distance Loathing (Summary and Data), VitalSmarts (Provo, UT: March 2009).
97. J. L. Cordery and C. Soo, “Overcoming Impediments to Virtual Team Effectiveness,” Human Factors and Ergo- nomics in Manufacturing & Service Industries 18, no. 5 (2008): 487–500; A. Ortiz de Guinea, J. Webster, and D. S. Staples, “A Meta-Analysis of the Consequences of Virtualness on Team Functioning,” Information & Management 49, no. 6 (2012): 301–308.
98. G. Hertel, U. Konradt, and K. Voss, “Competencies for Virtual Teamwork: Development and Validation of a Web-Based Selection Tool for Members of Distributed Teams,” European Journal of Work and Organizational Psychology 15, no. 4 (2006): 477–504; J. M. Wilson et al., “Perceived Proximity in Virtual Work: Explaining the Paradox of Far-but-Close,” Organization Studies 29, no. 7 (2008): 979–1002; L. L. Martins and M. C. Schilpzand, “Global Virtual Teams: Key Developments, Research Gaps, and Future Directions,” Research in Personnel and Human Resources Management 30 (2011): 1–72.
99. G. G. Harwood, “Design Principles for Successful Virtual Teams,” in The Handbook of High-Performance Virtual Teams: A Toolkit for Collaborating across Boundaries, ed. J. Nemiro and M. M. Beyerlein (San Francisco, CA: Jossey-Bass, 2008), 59–84. Also see H. Duckworth, “How TRW Automotive Helps Global Virtual Teams Perform at the Top of Their Game,” Global Business and Organiza- tional Excellence 28, no. 1 (2008): 6–16; L. Dubé and D. Robey, “Surviving the Paradoxes of Virtual Teamwork,” Information Systems Journal 19, no. 1 (2009): 3–30.
100. Dubé and Robey, “Surviving the Paradoxes of Virtual Teamwork.”
101. V. H. Vroom and A. G. Jago, The New Leadership (Englewood Cliffs, NJ: Prentice-Hall, 1988), 28–29.
102. M. Diehl and W. Stroebe, “Productivity Loss in Idea-Generating Groups: Tracking Down the Blocking Effects,” Journal of Personality and Social Psychology 61 (1991): 392–403; B. A. Nijstad, W. Stroebe, and H. F. M. Lodewijkx, “Production Blocking and Idea Genera- tion: Does Blocking Interfere with Cognitive Processes?” Journal of Experimental Social Psychology 39, no. 6 (2003): 531–48; B. A. Nijstad and W. Stroebe, “How the Group
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115. S. Frankel, “NGT 1 MDS: An Adaptation of the Nominal Group Technique for Ill-Structured Problems,” Journal of Applied Behavioral Science 23 (1987): 543–51; H. Barki and A. Pinsonneault, “Small Group Brain- storming and Idea Quality: Is Electronic Brainstorming the Most Effective Approach?” Small Group Research 32, no. 2 (2001): 158–205.
116. P. P. Lago et al., “Structuring Group Decision Making in a Web-Based Environment by Using the Nominal Group Technique,” Computers & Industrial Engineering 52, no. 2 (2007): 277–95.
CHAPTER 9
1. P. Swaminathan, “Infosys Gives Its Employees ‘a Voice,’” Yahoo! India Finance, 12 July 2011; G. Rustagi, “Internal Networks at Work Go Social,” Mint (India), 25 October 2012; S. K. Krishnan et al., “Organization, Generations and Communication: Infosys Experience,” NHRD Network Journal 5, no. 4 (2012): 85–93.
2. A. H. Van de Ven, A. L. Delbecq, and R. Koenig, Jr., “Determinants of Coordination Modes within Organiza- tions,” American Sociological Review 41, no. 2 (1976): 322–38; J. H. Gittell, R. Seidner, and J. Wimbush, “A Relational Model of How High-Performance Work Systems Work,” Organization Science 21, no. 2 (2010): 490–506; R. Foy et al., “Meta-Analysis: Effect of Interac- tive Communication between Collaborating Primary Care Physicians and Specialists,” Annals of Internal Medicine 152, no. 4 (2010): 247–58.
3. C. Barnard, The Functions of the Executive (Cambridge, MA: Harvard University Press, 1938), p. 82. Barnard’s entire statement also refers to the other features of orga- nizations that we describe in Chapter 1, namely that (a) people are willing to contribute their effort to the organization and (b) they have a common purpose.
4. M. T. Hansen, M. L. Mors, and B. Løvås, “Knowledge Sharing in Organizations: Multiple Networks, Multiple Phases,” Academy of Management Journal 48, no. 5 (2005): 776–93; S. R. Murray and J. Peyrefitte, “Knowl- edge Type and Communication Media Choice in the Knowledge Transfer Process,” Journal of Managerial Issues 19, no. 1 (2007): 111–33; S. L. Hoe and S. L. McShane, “Structural and Informal Knowledge Acquisition and Dissemination in Organizational Learning: An Explor- atory Analysis,” Learning Organization 17, no. 4 (2010): 364–86.
5. J. O’Toole and W. Bennis, “What’s Needed Next: A Culture of Candor,” Harvard Business Review 87, no. 6 (2009): 54–61.
6. M. DiGiovanni, “Cus View Best Workplace Recognition as a Starting Point,” Credit Union Times, 1 December 2010.
7. W. J. L. Elving, “The Role of Communication in Organ- isational Change,” Corporate Communications 10, no. 2 (2005): 129–38; P. M. Leonardi, T. B. Neeley, and E. M. Gerber, “How Managers Use Multiple Media: Discrepant Events, Power, and Timing in Redundant Communica- tion,” Organization Science 23, no. 1 (2012): 98–117; D. A. Tucker, P. Yeow, and G. T. Viki, “Communicating During Organizational Change Using Social Accounts: The Importance of Ideological Accounts,” Management Communication Quarterly 27, no. 2 (2013): 184–209.
business article critiquing brainstorming is B. S. Benson, “Let’s Toss This Idea Up,” Fortune, October 1957, 145–46.
108. R. I. Sutton and A. Hargadon, “Brainstorming Groups in Context: Effectiveness in a Product Design Firm,” Administrative Science Quarterly 41 (1996): 685–718; T. Kelley, The Art of Innovation (New York: Currency Doubleday, 2001); V. R. Brown and P. B. Paulus, “Making Group Brainstorming More Effective: Recom- mendations from an Associative Memory Perspective,” Current Directions in Psychological Science 11, no. 6 (2002): 208–12; K. Leggett Dugosh and P. B. Paulus, “Cognitive and Social Comparison Processes in Brain- storming,” Journal of Experimental Social Psychology 41, no. 3 (2005): 313–20.
109. J. Baruah and P. B. Paulus, “Effects of Training on Idea Generation in Groups,” Small Group Research 39, no. 5 (2008): 523–41; N. W. Kohn, P. B. Paulus, and Y. H. Choi, “Building on the Ideas of Others: An Examination of the Idea Combination Process,” Journal of Experimen- tal Social Psychology 47 (2011): 554–61.
110. N. W. Kohn and S. M. Smith, “Collaborative Fixation: Effects of Others’ Ideas on Brainstorming,” Applied Cognitive Psychology 25, no. 3 (2011): 359–71; A. Fink et al., “Stimulating Creativity Via the Exposure to Other People’s Ideas,” Human Brain Mapping 33, no. 11 (2012): 2603–10.
111. P. A. Heslin, “Better than Brainstorming? Potential Con- textual Boundary Conditions to Brainwriting for Idea Generation in Organizations,” Journal of Occupational and Organizational Psychology 82, no. 1 (2009): 129–45; J. S. Linsey and B. Becker, “Effectiveness of Brainwriting Techniques: Comparing Nominal Groups to Real Teams,” in Design Creativity 2010, ed. T. Taura and Y. Nagai (London: Springer, 2011), 165–71; N. Michinov, “Is Electronic Brainstorming or Brainwriting the Best Way to Improve Creative Performance in Groups? An Overlooked Comparison of Two Idea-Generation Tech- niques,” Journal of Applied Social Psychology 42 (2012): E222–E43.
112. R. B. Gallupe, L. M. Bastianutti, and W. H. Cooper, “Unblocking Brainstorms,” Journal of Applied Psychology 76 (1991): 137–42; W. H. Cooper et al., “Some Liberat- ing Effects of Anonymous Electronic Brainstorming,” Small Group Research 29, no. 2 (1998): 147–78; A. R. Dennis, B. H. Wixom, and R. J. Vandenberg, “Under- standing Fit and Appropriation Effects in Group Support Systems Via Meta-Analysis,” MIS Quarterly 25, no. 2 (2001): 167–93; D. M. DeRosa, C. L. Smith, and D. A. Hantula, “The Medium Matters: Mining the Long-Promised Merit of Group Interaction in Creative Idea Generation Tasks in a Meta-Analysis of the Elec- tronic Group Brainstorming Literature,” Computers in Human Behavior 23, no. 3 (2007): 1549–81.
113. A. L. Delbecq, A. H. Van de Ven, and D. H. Gustafson, Group Techniques for Program Planning: A Guide to Nomi- nal Group and Delphi Processes (Middleton, WI: Green Briar Press, 1986).
114. D. M. Spencer, “Facilitating Public Participation in Tourism Planning on American Indian Reservations: A Case Study Involving the Nominal Group Technique,” Tourism Management 31, no. 5 (2011): 684–90.
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18. N. Panteli, “Richness, Power Cues and Email Text,” In- formation & Management 40, no. 2 (2002): 75–86; N. B. Ducheneaut, “The Social Impacts of Electronic Mail in Organizations: A Case Study of Electronic Power Games Using Communication Genres,” Information, Communi- cation, & Society 5, no. 2 (2002): 153–88.
19. N. Epley and J. Kruger, “When What You Type Isn’t What They Read: The Perseverance of Stereotypes and Expectancies over E-Mail,” Journal of Experimental Social Psychology 41, no. 4 (2005): 414–22.
20. J. Kruger et al., “Egocentrism over E-Mail: Can We Communicate as Well as We Think?” Journal of Personal- ity and Social Psychology 89, no. 6 (2005): 925–36.
21. J. B. Walther, “Language and Communication Technol- ogy: Introduction to the Special Issue,” Journal of Lan- guage and Social Psychology 23, no. 4 (2004): 384–96; J. B. Walther, T. Loh, and L. Granka, “Let Me Count the Ways: The Interchange of Verbal and Nonverbal Cues in Computer-Mediated and Face-to-Face Affinity,” Journal of Language and Social Psychology 24, no. 1 (2005): 36–65; K. Byron, “Carrying Too Heavy a Load? The Communication and Miscommunication of Emotion by Email,” Academy of Management Review 33, no. 2 (2008): 309–27; J. M. Whalen, P. M. Pexman, and A. J. Gill, “‘Should Be Fun—Not!’: Incidence and Marking of Nonliteral Language in E-Mail,” Journal of Language and Social Psychology 28, no. 3 (2009): 263–80.
22. “Atos Origin Abandoning Email,” Computerworld UK, 9 February 2011; G. Nairn, “The Trouble with Office Email,” Financial Times (London), 17 February 2011; P. Taylor, “Atos’ ‘Zero Email Initiative’ Succeeding,” Financial Times, 7 March 2013.
23. Byron, “Carrying Too Heavy a Load?” 24. G. Hertel, S. Geister, and U. Konradt, “Managing Vir-
tual Teams: A Review of Current Empirical Research,” Human Resource Management Review 15(2005): 69–95; H. Lee, “Behavioral Strategies for Dealing with Flaming in an Online Forum,” The Sociological Quarterly 46, no. 2 (2005): 385–403.
25. G. F. Thomas and C. L. King, “Reconceptualizing E-Mail Overload,” Journal of Business and Technical Communication 20, no. 3 (2006): 252–87; S. R. Barley, D. E. Meyerson, and S. Grodal, “E-Mail as a Source and Symbol of Stress,” Organization Science 22, no. 4 (2011): 887–906.
26. R. D. Waters et al., “Engaging Stakeholders through Social Networking: How Nonprofit Organizations Are Using Facebook,” Public Relations Review 35, no. 2 (2009): 102–06; J. Cunningham, “New Workers, New Work- place? Getting the Balance Right,” Strategic Direction 26, no. 1 (2010): 5; A. M. Kaplan and M. Haenlein, “Users of the World, Unite! The Challenges and Opportunities of Social Media,” Business Horizons 53, no. 1 (2010): 59–68.
27. J. H. Kietzmann et al., “Social Media? Get Serious! Understanding the Functional Building Blocks of Social Media,” Business Horizons 54, no. 3 (2011): 241–51.
28. S. Holtz, “Open the Door,” Communication World, September 2010, 26.
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60. D. C. Thomas and K. Inkson, Cultural Intelligence: People Skills for Global Business (San Francisco: Berrett-Koehler, 2004), Ch. 6; D. Welch, L. Welch, and R. Piekkari, “Speaking in Tongues,” International Studies of Manage- ment & Organization 35, no. 1 (2005): 10–27.
61. D. Woodruff, “Crossing Culture Divide Early Clears Merger Paths,” Asian Wall Street Journal, 28 May 2001, 9; “Differentstrokes,” Personnel Today, 25 November 2008, 190.
62. S. Ohtaki, T. Ohtaki, and M. D. Fetters, “Doctor-Patient Communication: A Comparison of the USA and Japan,” Family Practice 20(2003): 276–82; M. Fujio, “Silence During Intercultural Communication: A Case Study,” Corporate Communications 9, no. 4 (2004): 331–39.
63. T. Hasegawa and W. B. Gudykunst, “Silence in Japan and the United States,” Journal of Cross-Cultural Psychol- ogy 29, no. 5 (1998): 668–84.
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85. K. Dyer, “Changing Perceptions Virally at Novo Nordisk,” Strategic Communication Management 13, no. 2 (2009): 24–27.
86. S. R. Clegg and A. van Iterson, “Dishing the Dirt: Gossiping in Organizations,” Culture and Organization 15, no. 3–4 (2009): 275–89; C. Mills, “Experiencing Gossip: The Foundations for a Theory of Embedded Organiza- tional Gossip,” Group & Organization Management 35, no. 2 (2010): 213–40.
86. R. L. Rosnow, “Inside Rumor: A Personal Journey,” American Psychologist 46(1991): 484–96; C. J. Walker and C. A. Beckerle, “The Effect of State Anxiety on Rumor Transmission,” Journal of Social Behaviour & Personality 2(1987): 353–60; M. Noon and R. Delbridge, “News from Behind My Hand: Gossip in Organizations,” Organization Studies 14(1993): 23–36.
88. N. Nicholson, “Evolutionary Psychology: Toward a New View of Human Nature and Organizational Society,” Human Relations 50(1997): 1053–78; E. K. Foster, “Research on Gossip: Taxonomy, Methods, and Future Directions,” Review of General Psychology 8, no. 2 (2004): 78–99; B. Beersma and G. A. Van Kleef, “Why People Gossip: An Empirical Analysis of Social Motives, Antecedents, and Consequences,” Journal of Applied Social Psychology 42, no. 11 (2012): 2640–70.
CHAPTER 10
1. K. Burne, “Making Waves against ‘Whale,’” The Wall Street Journal, 11 April 2012, C1; E. Schatzker, C. Harper, and M. Childs, “JPMorgan Said to Transform Treasury to Prop Trading,” Bloomberg, 13 April 2012; G. Zuckerman, “From ‘Caveman’ to ‘Whale,’” The Wall Street Journal (2012), C1; D. Fitzpatrick, J. Eaglesham, and D. Barrett, “Two Charged in ‘London Whale’ Case,” The Wall Street Journal, 15 August 2013, C1; “Ex-JP Morgan Boss Blames London Office for £4bn Loss in ‘Whale’ Scandal,” Mail Online (London), 16 March 2013; B. Laurence, “Whale Leaves Cracks in Wall St,” Sunday Times (London), 18 August 2013, 7; M. Cavanagh, Report of JPMorgan Chase & Co. Management Task Force Regarding 2012 CIO Losses, JP Morgan Chase & Co (New York: 16 January 2013).
2. J. R. P. French and B. Raven, “The Bases of Social Power,” in Studies in Social Power, ed. D. Cartwright (Ann Arbor, MI: University of Michigan Press, 1959), 150–67; A. D. Galinsky et al., “Power and Perspectives Not Taken,” Psychological Science 17, no. 12 (2006): 1068–74. Also see H. Mintzberg, Power in and around Organizations (Englewood Cliffs, NJ: Prentice Hall, 1983), Ch. 1; J. Pfeffer, Managing with Power (Boston: Harvard Business University Press, 1992), pp. 17, 30; A. Guinote and T. K. Vescio, “Introduction: Power in Social Psychology,” in The Social Psychology of Power, ed. A. Guinote and T. K. Vescio (New York: Guilford Press, 2010), 1–18.
3. R. A. Dahl, “The Concept of Power,” Behavioral Science 2(1957): 201–18; R. M. Emerson, “Power-Dependence Relations,” American Sociological Review 27(1962): 31–41; A. M. Pettigrew, The Politics of Organizational Decision- Making (London: Tavistock, 1973).
4. G. A. Van Kleef et al., “Breaking the Rules to Rise to Power: How Norm Violators Gain Power in the Eyes of
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75. G. Evans and D. Johnson, “Stress and Open-Office Noise,” Journal of Applied Psychology 85(2000): 779–83; F. Russo, “My Kingdom for a Door,” Time Magazine, 23 October 2000, B1.
76. D. Waisberg, “Quiet Please! . . . We’re Working,” National Post, 30 May 2007.
77. S. P. Means, “Playing at Pixar,” Salt Lake Tribune (Utah), 30 May 2003, D1; G. Whipp, “Swimming against the Tide,” Daily News of Los Angeles, 30 May 2003, U6.
78. D. Bracken, “Open Office Plans Make ‘Mine’ a Thing of the Past,” News & Observer (Raleigh, NC), 13 March 2011; “GSK Plays Musical Chairs at Work,” Business North Carolina, June 2012; “Cost Efficient, Open- Space Office Designs: Ditching Desks—and Privacy,” Knowledge@Wharton, 19 June 2013.
79. C. Wagner and A. Majchrzak, “Enabling Customer- Centricity Using Wikis and the Wiki Way,” Journal of Management Information Systems 23, no. 3 (2006): 17–43; C. Karena, “Working the Wiki Way,” Sydney Morning Herald, 6 March 2007; R. B. Ferguson, “Build a Web 2.0 Platform and Employees Will Use It,” eWeek, 20 June 2007.
80. R. LaHood, “Dot Employees Give Department a Thumbs-Up,” Welcome to the Fastlane: The Official Blog of the U.S. Secretary of Transportation, 12 July 2010, http://fastlane.dot.gov/2010/07/dot-employees-give- department-a-thumbsup.html.
81. T. Fenton, “Inside the Worldblu List: 1–800-Got- Junk?’s CEO on Why ‘Being Democratic Is Extremely Important to Maintaining Our Competitive Advan- tage,’” (Atlanta: WorldBlu, 3 January 2008). The origi- nal term is “management by wandering around,” but this has been replaced with “walking around” over the years. See: W. Ouchi, Theory Z (New York: Avon Books, 1981), pp. 176–77; T. Peters and R. Waterman, In Search of Excellence (New York: Harper and Row, 1982), p. 122.
82. R. Rousos, “Trust in Leaders Lacking at Utility,” The Ledger (Lakeland, FL), 29 July 2003, B1; B. Whitworth and B. Riccomini, “Management Communication: Un- locking Higher Employee Performance,” Communication World, March-April 2005, 18–21.
83. K. Davis, “Management Communication and the Grapevine,” Harvard Business Review 31(1953): 43–49; W. L. Davis and J. R. O’Connor, “Serial Transmission of Information: A Study of the Grapevine,” Journal of Applied Communication Research 5(1977): 61–72.
84. A. De Bruyn and G. L. Lilien, “A Multi-Stage Model of Word-of-Mouth Influence through Viral Marketing,” International Journal of Research in Marketing 25, no. 3 (2008): 151–63; J. Y. C. Ho and M. Dempsey, “Viral Marketing: Motivations to Forward Online Content,” Journal of Business Research 63, no. 9–10 (2010): 1000–06; M. Williams and F. Buttle, “The Eight Pillars of Wom Management: Lessons from a Multiple Case Study,” Australasian Marketing Journal 19, no. 2 (2011): 85–92.
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14. S. L. Robinson, J. O’Reilly, and W. Wang, “Invisible at Work: An Integrated Model of Workplace Ostracism,” Journal of Management 39, no. 1 (2013): 203–31.
15. L. S. Sya, “Flying to Greater Heights,” New Sunday Times (Kuala Lumpur), 31 July 2005, 14; M. Bolch, “Rewarding the Team,” HRMagazine, February 2007, 91–93.
16. J. M. Peiro and J. L. Melia, “Formal and Informal Inter- personal Power in Organisations: Testing a Bifactorial Model of Power in Role-Sets,” Applied Psychology 52, no. 1 (2003): 14–35.
17. C. R. Hinings et al., “Structural Conditions of Intraorga- nizational Power,” Administrative Science Quarterly 19(1974): 22–44. Also see: C. S. Saunders, “The Strate- gic Contingency Theory of Power: Multiple Perspec- tives,” Journal of Management Studies 27(1990): 1–21.
18. J. Ng, “Finding a New Future,” Edge Singapore, 10 June 2013; G. Chng, “New CEO Sets Key Priorities for Starhub,” Straits Times, 1 March 2013.
19. R. B. Cialdini and N. J. Goldstein, “Social Influence: Compliance and Conformity,” Annual Review of Psychol- ogy 55(2004): 591–621.
20. C. K. Hofling et al., “An Experimental Study in Nurse-Physician Relationships,” Journal of Nervous and Mental Disease 143, no. 2 (1966): 171–77.
21. C. Perkel, “It’s Not CSI,” Canadian Press, 10 November 2007; “Dr. Charles Smith: The Man Behind the Public Inquiry,” CBC News (Toronto), 10 August 2010. Evidence-based management writers also warn against blindly following the advice of management gurus. See: J. Pfeffer and R. I. Sutton, Hard Facts, Dangerous Half- Truths, and Total Nonsense (Boston: Harvard Business School Press, 2006), pp. 45–46.
22. K. Miyahara, “Charisma: From Weber to Contemporary Sociology,” Sociological Inquiry 53, no. 4 (1983): 368–88; J. D. Kudisch and M. L. Poteet, “Expert Power, Referent Power, and Charisma: Toward the Resolution of a Theoretical Debate,” Journal of Business & Psychology 10(1995): 177–95; D. Ladkin, “The Enchantment of the Charismatic Leader: Charisma Reconsidered as Aesthetic Encounter,” Leadership 2, no. 2 (2006): 165–79.
23. D. J. Hickson et al., “A Strategic Contingencies’ Theory of Intraorganizational Power,” Administrative Science Quarterly 16(1971): 216–27; Hinings et al., “Structural Conditions of Intraorganizational Power”; R. M. Kanter, “Power Failure in Management Circuits,” Harvard Business Review (1979): 65–75.
24. A. Bryant, “The Right Job? It’s Much Like the Right Spouse,” The New York Times, 22 May 2011, 2. The “DNA” acronym is from M. D. Johnson, Brand Me. Make Your Mark: Turn Passion into Profit (Blacklick, OH: Ambassador Press, 2008).
25. Hickson et al., “A Strategic Contingencies’ Theory of Intraorganizational Power,” pp. 219–21; J. D. Hackman, “Power and Centrality in the Allocation of Resources in Colleges and Universities,” Administrative Science Quar- terly 30(1985): 61–77; D. J. Brass and M. E. Burkhardt, “Potential Power and Power Use: An Investigation of Structure and Behavior,” Academy of Management Journal 36(1993): 441–70.
26. S. D. Harrington and B. Ivry, “For Commuters, a Day to Adapt,” The Record (Bergen, NJ), 21 December 2005, A1;
Others,” Social Psychological and Personality Science 2, no. 5 (2011): 500–07.
5. J. Pfeffer and G. R. Salancik, The External Control of Or- ganizations (New York: Harper & Row, 1978), pp. 52–54; R. Gulati and M. Sytch, “Dependence Asymmetry and Joint Dependence in Interorganizational Relationships: Effects of Embeddedness on a Manufacturer’s Perfor- mance in Procurement Relationships,” Administrative Science Quarterly 52, no. 1 (2007): 32–69.
6. French and Raven, “The Bases of Social Power”; P. Podsakoff and C. Schreisheim, “Field Studies of French and Raven’s Bases of Power: Critique, Analysis, and Suggestions for Future Research,” Psychological Bulletin 97(1985): 387–411; P. P. Carson and K. D. Carson, “Social Power Bases: A Meta-Analytic Examination of Interrelationships and Outcomes,” Journal of Applied Social Psychology 23(1993): 1150–69. The alternative models of power bases are reviewed in a recent disserta- tion by Heinemann, who points out that most of them parallel French and Raven’s list. See: P. Heinemann, Power Bases and Informational Influence Strategies: A Behavioral Study on the Use of Management Accounting Information (Wiesbaden, Germany: Deutscher Universitäts-Verlag, 2008). Raven subsequently proposed information power as a sixth source of power. We present information power as a form of legitimate and expert power, rather than a distinct sixth power base.
7. C. Barnard, The Function of the Executive (Cambridge, MA: Harvard University Press, 1938), pp. 167–70; C. Hardy and S. R. Clegg, “Some Dare Call It Power,” in Handbook of Organization Studies, ed. S. R. Clegg, C. Hardy, and W. R. Nord (London: Sage, 1996), 622–41.
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9. B. Crumley, “Game of Death: France’s Shocking TV Experiment,” Time, 17 March 2010; R. L. Parry, “Contestants Turn Torturers in French TV Experiment,” Yahoo! News, 16 March 2010.
10. B. H. Raven, “Kurt Lewin Address: Influence, Power, Religion, and the Mechanisms of Social Control,” Journal of Social Issues 55(1999): 161–86.
11. A. W. Gouldner, “The Norm of Reciprocity: A Prelimi- nary Statement,” American Sociological Review 25(1960): 161–78.
12. G. Yukl and C. M. Falbe, “Importance of Different Power Sources in Downward and Lateral Relations,” Journal of Applied Psychology 76(1991): 416–23; Raven, “Kurt Lewin Address.”
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Wars: Tis the Season to Be Spiteful,” Officebroker Blog, 2013, http://www.officebroker.com/blog/.
86. S. Blazejewski and W. Dorow, “Managing Organizational Politics for Radical Change: The Case of Beiersdorf- Lechia S. A., Poznan,” Journal of World Business 38(2003): 204–23.
87. L. W. Porter, R. W. Allen, and H. L. Angle, “The Politics of Upward Influence in Organizations,” Research in Organizational Behavior 3(1981): 120–22; R. J. House, “Power and Personality in Complex Organizations,” Research in Organizational Behavior 10(1988): 305–57.
88. R. Christie and F. Geis, Studies in Machiavellianism (New York: Academic Press, 1970); S. M. Farmer et al., “Putting Upward Influence Strategies in Context,” Journal of Organizational Behavior 18(1997): 17–42; K. S. Sauleya and A. G. Bedeian, “Equity Sensitivity: Construction of a Measure and Examination of Its Psychometric Properties,” Journal of Management 26(2000): 885–910.
CHAPTER 11
1. D. Nebenzahl, “Managing the Generation Gap,” Montreal Gazette, 28 February 2009, G1; D. Deveau, “L’Oréal Canada Discovers the Beauty of Motivation,” Postmedia News (Toronto), 24 January 2011; “L’Oreal Canada Considers Inter-Generational Teams a Strength,” National Post, 13 May 2013; “Embracing the New Demographic,” National Post, 13 May 2013.
2. J. A. Wall and R. R. Callister, “Conflict and Its Manage- ment,” Journal of Management, 21 (1995): 515–58; M. A. Rahim, Managing Conflict in Organizations, 4th ed. (New Brunswick, NJ: Transaction Publishers, 2011), 15–17; D. Tjosvold, Working Together to Get Things Done (Lexington, MA: Lexington, 1986), 114–115; D. Tjosvold, “Defining Conflict and Making Choices about Its Management,” International Journal of Conflict Management 17, no. 2 (2006): 87–95.
3. For example, see R. R. Blake, H. A. Shepard, and J. S. Mouton, Managing Intergroup Conflict in Industry (Houston, TX: Gulf Publishing, 1964); K. E. Boulding, “Organization and Conflict,” Conflict Resolution 1, no. 2 (June 1957): 122–34; C. Argyris, “The Individual and Organization: Some Problems of Mutual Adjustment,” Administrative Science Quarterly 2, no. 1 (1957): 1–24; L. Urwick, The Elements of Administration, 2nd ed. (London: Pitman, 1947).
4. Rahim, Managing Conflict in Organizations. 5. K. A. Jehn and C. Bendersky, “Intragroup Conflict in
Organizations: A Contingency Perspective on the Conflict- Outcome Relationship,” Research in Organizational Behavior 25 (2003): 187–242; C. K. W. De Dreu and L. R. Weingart, “A Contingency Theory of Task Conflict and Performance in Groups and Organizational Teams,” in International Handbook of Organizational Teamwork and Cooperative Working, M. A. West, D. Tjosvold, and K. G. Smith, eds. (Chicester, UK: John Wiley & Sons, 2003), 151–66; L. Troyer and R. Youngreen, “Conflict and Creativity in Groups,” Journal of Social Issues 65, no. 2 (2009): 409–27.
6. Workplace Conflict and How Businesses Can Harness It to Thrive, CPP Global Human Capital Report (Mountain View, CA: CPP, Inc., July 2008).
78. D. Strutton, L. E. Pelton, and J. Tanner, J. F., “Shall We Gather in the Garden: The Effect of Ingratiatory Behav- iors on Buyer Trust in Salespeople,” Industrial Marketing Management 25(1996): 151–62; J. O’Neil, “An Investiga- tion of the Sources of Influence of Corporate Public Relations Practitioners,” Public Relations Review 29(2003): 159–69.
79. C. M. Falbe and G. Yukl, “Consequences for Managers of Using Single Influence Tactics and Combinations of Tactics,” Academy of Management Journal 35(1992): 638–52.
80. R. C. Ringer and R. W. Boss, “Hospital Professionals’ Use of Upward Influence Tactics,” Journal of Managerial Issues 12(2000): 92–108.
81. G. Blickle, “Do Work Values Predict the Use of Intraor- ganizational Influence Strategies?” Journal of Applied Social Psychology 30, no. 1 (2000): 196–205; P. P. Fu et al., “The Impact of Societal Cultural Values and Individual Social Beliefs on the Perceived Effectiveness of Manage- rial Influence Strategies: A Meso Approach,” Journal of International Business Studies 35, no. 4 (2004): 284–305.
82. This has become the generally accepted definition of or- ganizational politics over the past two decades. See: G. R. Ferris and K. M. Kacmar, “Perceptions of Organizational Politics,” Journal of Management 18(1992): 93–116; R. Cropanzano et al., “The Relationship of Organizational Politics and Support to Work Behaviors, Attitudes, and Stress,” Journal of Organizational Behavior 18(1997): 159–80; E. Vigoda, “Stress-Related Aftermaths to Work- place Politics: The Relationships among Politics, Job Dis- tress, and Aggressive Behavior in Organizations,” Journal of Organizational Behavior 23(2002): 571–91. However, organizational politics was previously viewed as influence tactics outside the formal role that could be either selfish or altruistic. This older definition is less common today, possibly because it is incongruent with popular views of politics and because its meaning is too ambiguous. For this older perspective of organizational politics, see: J. Pfeffer, Power in Organizations (Boston: Pitman, 1981); Mintzberg, Power in and around Organizations.
83. K. M. Kacmar and R. A. Baron, “Organizational Politics: The State of the Field, Links to Related Processes, and an Agenda for Future Research,” in Research in Personnel and Human Resources Management, ed. G. R. Ferris (Greenwich, CT: JAI Press, 1999), 1–39; Vigoda, “Stress- Related Aftermaths to Workplace Politics”; C.-H. Chang, C. C. Rosen, and P. E. Levy, “The Relationship between Perceptions of Organizational Politics and Employee Attitudes, Strain, and Behavior: A Meta-Analytic Examina- tion,” Academy of Management Journal 52, no. 4 (2009): 779–801. The quotation is from M. Landry, “Navigating the Political Minefield,” PM Network, March 2013, 38–43.
84. C. Hardy, Strategies for Retrenchment and Turnaround: The Politics of Survival (Berlin: Walter de Gruyter, 1990), Ch. 14; G. R. Ferris et al., “Perceptions of Organizational Politics: Prediction, Stress-Related Implications, and Outcomes,” Human Relations 49(1996): 233–63; M. C. Andrews and K. M. Kacmar, “Discriminating among Organizational Politics, Justice, and Support,” Journal of Organizational Behavior 22(2001): 347–66.
85. L. Hull, “Covert War in the Workplace . . . over the Holi day Rota,” Mail Online, 7 August 2013; “Office
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7. F. R. C. de Wit, L. L. Greer, and K. A. Jehn, “The Para- dox of Intragroup Conflict: A Meta-Analysis,” Journal of Applied Psychology 97, no. 2 (March 2012): 360–90; L. L. Meier et al., “Relationship and Task Conflict at Work: Interactive Short-Term Effects on Angry Mood and Somatic Complaints,” Journal of Occupational Health Psychology 18, no. 2 (April 2013): 144–56.
8. S. Farberov, “American Airlines Flight Delayed Four Hours after Two Female Flight Attendants Start a Fight over Cell Phone,” Mail Online (London), 20 September 201; M. O’Sullivan, “Fighting Kangaroo,” Canberra Times, 21 August 2012; “American Eagle Flight Atten- dants’ Argument Causes 4-Hour Delay at JFK,” NBC News, 20 September 201; S. Grossman, “Fight or Flight?” Time, 21 September 2012.
9. J. Dewey, Human Nature and Conduct: An Introduction to Social Psychology (New York: Holt, 1922), p. 300.
10. M. P. Follett, “Constructive Conflict,” in Dynamic Administration: The Collected Papers of Mary Parker Follett, H. C. Metcalf and L. Urwick, eds. (Bath, UK: Management Publications Trust, 1941), 30–49.
11. M. Duarte and G. Davies, “Testing the Conflict- Performance Assumption in Business-to-Business Relation- ships,” Industrial Marketing Management 32 (2003): 91–99; M. A. Rahim, “Toward a Theory of Managing Organiza- tional Conflict,” International Journal of Conflict Manage- ment 13, no. 3 (2002): 206–35. Although the 1970s marked a point when the benefits conflict became widely acknowledged, this view was expressed earlier by some writers. See H. Assael, “Constructive Role of Interorganiza- tional Conflict,” Administrative Science Quarterly 14, no. 4 (1969): 573–82; L. A. Coser, The Functions of Social Conflict (New York: The Free Press, 1956); J. A. Litterer, “Conflict in Organization: A Re-Examination,” Academy of Management Journal 9 (1966): 178–86.
12. J. L. Farh, C. Lee, and C. I. C. Farh, “Task Conflict and Team Creativity: A Question of How Much and When,” Journal of Applied Psychology 95, no. 6 (November 2010): 1173–80; J. D. Shaw et al., “A Contingency Model of Conflict and Team Effectiveness,” Journal of Applied Psychology 96, no. 2 (March 2011): 391–400.
13. P. J. Carnevale, “Creativity in the Outcomes of Conflict,” in The Handbook of Conflict Resolution: Theory and Practice, M. Deutsch, P. T. Coleman, and E. C. Marcus, eds., 2nd ed. (San Francisco: Jossey-Bass, 2006), 414–35; P. J. Boyle, D. Hanlon, and J. E. Russo, “The Value of Task Conflict to Group Decisions,” Journal of Behavioral Decision Making 25, no. 3 (2012): 217–27.
14. K. M. Eisenhardt, J. L. Kahwajy, and L. J. Bourgeois III, “How Management Teams Can Have a Good Fight,” Harvard Business Review (July-August 1997): 77–85; T. Greitemeyer et al., “Information Sampling and Group Decision Making: The Effects of an Advocacy Decision Procedure and Task Experience,” Journal of Experimental Psychology-Applied 12, no. 1 (March 2006): 31–42; U. Klocke, “How to Improve Decision Making in Small Groups: Effects of Dissent and Training Interventions,” Small Group Research 38, no. 3 (June 2007): 437–68; K. M. Eisenhardt, J. L. Kahwajy, and L. J. Bourgeois III, “Conflict and Strategic Choice: How Top Management Teams Disagree,” California Management Review 39 (Winter 1997): 42–62
15. Jehn and Bendersky, “Intragroup Conflict in Organiza- tions”; L. H. Pelled, K. M. Eisenhardt, and K. R. Xin, “Exploring the Black Box: An Analysis of Work Group Diversity, Conflict, and Performance,” Administrative Science Quarterly 44 (March 1999): 1–28; H. Guetzkow and J. Gyr, “An Analysis of Conflict in Decision-Making Groups,” Human Relations 7, no. 3 (August 1954): 367–82. The notion of two types of conflict dates back to Georg Simmel, who described two types of conflict: one with a personal and subjective goal, and another that has an impersonal and objective quality. See Coser, The Functions of Social Conflict, p. 112. Contemporary schol- ars use various labels for task and relationship conflict. We have avoided the “cognitive” and “affective” conflict labels, because cognitions and emotions are intercon- nected processes in all human activity. A third type of conflict, process conflict, is excluded due to the limited research covering it and some questions about its distinc- tion from task conflict.
16. C. K. W. De Dreu, “When Too Little or Too Much Hurts: Evidence for a Curvilinear Relationship between Task Conflict and Innovation in Teams,” Journal of Management 32, no. 1 (February 2006): 83–107; de Wit, Greer, and Jehn, “The Paradox of Intragroup Conflict: A Meta-Analysis.”
17. R. S. Lau and A. T. Cobb, “Understanding the Connec- tions between Relationship Conflict and Performance: The Intervening Roles of Trust and Exchange,” Journal of Organizational Behavior 31, no. 6 (2010): 898–917.
18. C. K. W. De Dreu and L. R. Weingart, “Task Versus Relationship Conflict, Team Performance, and Team Member Satisfaction: A Meta-Analysis,” Journal of Applied Psychology 88 (August 2003): 587–604; A. C. Mooney, P. J. Holahan, and A. C. Amason, “Don’t Take It Personally: Exploring Cognitive Conflict as a Mediator of Affective Conflict,” Journal of Management Studies 44, no. 5 (2007): 733–58; K. Choi and B. Cho, “Competing Hypotheses Analyses of the Associations between Group Task Conflict and Group Relationship Conflict,” Journal of Organizational Behavior 32, no. 8 (2011): 1106–26.
19. D. Senor and S. Singer, Start-Up Nation: The Story of Israel’s Economic Miracle (New York: Hachette Book Group, 2009); J. Detar, “Andy Grove, Intel’s Inside Man,” Investor’s Business Daily, 24 July 200; A. Grove, “How to Make Confrontation Work for You,” in The Book of Management Wisdom, ed. P. Krass (New York: John Wiley & Sons, 2000), 83–89.
20. J. X. Yang and K. W. Mossholder, “Decoupling Task and Relationship Conflict: The Role of Intergroup Emotional Processing,” Journal of Organizational Behavior 25 (2004): 589–605; B. H. Bradley et al., “Ready to Rum- ble: How Team Personality Composition and Task Con- flict Interact to Improve Performance,” Journal of Applied Psychology 98, no. 2 (2013): 385–92; B. H. Bradley et al., “Reaping the Benefits of Task Conflict in Teams: The Critical Role of Team Psychological Safety Climate,” Journal of Applied Psychology 97, no. 1 (2012): 151–58.
21. P. L. Curseu, S. Boros, and L. A. G. Oerlemans, “Task and Relationship Conflict in Short-Term and Long-Term Groups the Critical Role of Emotion Regulation,” Inter- national Journal of Conflict Management 23, no. 1 (2012): 97–107; A. Schlaerth, N. Ensari, and J. Christian, “A
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35. P. C. Earley and G. B. Northcraft, “Goal Setting, Resource Interdependence, and Conflict Management,” in Managing Conflict: An Interdisciplinary Approach, ed. M. A. Rahim (New York: Praeger, 1989), 161–70; K. Jehn, “A Multimethod Examination of the Benefits and Detriments of Intragroup Conflict,” Administrative Science Quarterly 40 (1995): 245–82.
36. A. Risberg, “Employee Experiences of Acquisition Processes,” Journal of World Business 36 (March 2001): 58–84.
37. Jehn and Bendersky, “Intragroup Conflict in Organizations.”
38. M. Hewstone, M. Rubin, and H. Willis, “Intergroup Bias,” Annual Review of Psychology 53 (2002): 575–604; J. Jetten, R. Spears, and T. Postmes, “Intergroup Distinc- tiveness and Differentiation: A Meta-Analytic Integra- tion,” Journal of Personality and Social Psychology 86, no. 6 (2004): 862–79.
39. Follett, “Constructive Conflict”; Blake, Shepard, and Mouton, Managing Intergroup Conflict in Industry; T. Ruble and K. Thomas, “Support for a Two-Dimensional Model of Conflict Behavior,” Organizaiotnal Behavior and Human Performance 16 (1976): 143–55; C. K. W. De Dreu et al., “A Theory-Based Measure of Conflict Management Strategies in the Workplace,” Journal of Organizational Behavior 22 (2001): 645–68; Rahim, “Toward a Theory of Managing Organizational Conflict.”
40. Workplace Conflict and How Businesses Can Harness It to Thrive.
41. Q. Wang, E. L. Fink, and D. A. Cai, “The Effect of Conflict Goals on Avoidance Strategies: What Does Not Communicating Communicate?” Human Communica- tion Research 38, no. 2 (2012): 222–252.
42. A. Bryant, “We’re Family, So We Can Disagree,” The New York Times, 21 February 2010, 1.
43. Several studies identify the antecedents of preferred conflict style. For example, see P. J. Moberg, “Linking Conflict Strategy to the Five-Factor Model: Theoretical and Empirical Foundations,” International Journal of Conflict Management 12, no. 1 (2001): 47–68; H.-A. Shih and E. Susanto, “Conflict Management Styles, Emotional Intelligence, and Job Performance in Public Organizations,” International Journal of Conflict Management 21, no. 2 (2010): 147–68; J. E. Barbuto, Jr., K. A. Phipps, and Y. Xu, “Testing Relationships between Personality, Conflict Styles and Effectiveness,” Interna- tional Journal of Conflict Management 21, no. 4 (2010): 434–47.
44. D. W. Johnson et al., “Effects of Cooperative, Competi- tive, and Individualistic Goal Structures on Achievement: A Meta-Analysis,” Psychological Bulletin 89 (1981): 47–62; G. A. Callanan, C. D. Benzing, and D. F. Perri, “Chcoie of Conflict-Handling Strategy: A Matter of Context,” Journal of Psychology 140, no. 3 (2006): 269–88; Z. Ma et al., “The Impact of Group-Oriented Values on Choice of Conflict Management Styles and Outcomes: An Empir- ical Study in Turkey,” The International Journal of Human Resource Management 23, no. 18 (2012): 3776–93.
45. X. M. Song, J. Xie, and B. Dyer, “Antecedents and Consequences of Marketing Managers’ Conflict-Handling Behaviors,” Journal of Marketing 64 (January 2000): 50–66; R. A. Friedman et al., “What Goes around Comes
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23. A. C. Amason and H. J. Sapienza, “The Effects of Top Management Team Size and Interaction Norms on Cog- nitive and Affective Conflict,” Journal of Management 23, no. 4 (1997): 495–516.
24. L. Pondy, “Organizational Conflict: Concepts and Mod- els,” Administrative Science Quarterly 2 (1967): 296–32; K. W. Thomas, “Conflict and Negotiation Processes in Organizations,” in Handbook of Industrial and Organiza- tional Psychology, ed. M. D. Dunnette and L. M. Hough, 2nd ed. (Palo Alto, CA: Consulting Psychologists Press, 1992), 651–718.
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26. M. A. Von Glinow, D. L. Shapiro, and J. M. Brett, “Can We Talk, and Should We? Managing Emotional Conflict in Multicultural Teams,” Academy of Management Review 29, no. 4 (2004): 578–592.
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31. Data are from the 2009 Kelly Global Workforce Index, based on information published in news releases in each country by Kelly Services in September 2009.
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33. T. Taylor, “Change Is an Inevitable Part of Life,” Denver Business Journal Online, 8 October 2012.
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56. Lau and Cobb, “Understanding the Connections between Relationship Conflict and Performance: The Intervening Roles of Trust and Exchange.”
57. S. Wilhelm, “Workers on Boeing Assembly Line Now Get Schooled on Bottom Line,” Puget Sound Business Journal, 16 December 2011.
58. H. C. Triandis, “The Future of Workforce Diversity in International Organisations: A Commentary,” Applied Psychology: An International Journal 52, no. 3 (2003): 486–495.
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62. N. Yemchenko, “I’m a Corporate Volunteer,” System Capital Management: Corporate Blog 26 April 201; “About 18,000 Employees of SCM Group Clean up 73 Ukrainian Cities,” news release, S. C. Management (Donetsk: 22 April 2013).
63. Triandis, “The Future of Workforce Diversity in Interna- tional Organisations.”
64. Von Glinow, Shapiro, and Brett, “Can We Talk, and Should We?”
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66. K. Bollen, H. Ittner, and M. C. Euwema, “Mediating Hierarchical Labor Conflicts: Procedural Justice Makes a Difference—for Subordinates,” Group Decision and
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47. C. K. W. De Dreu and A. E. M. Van Vianen, “Managing Relationship Conflict and the Effectiveness of Organiza- tional Teams,” Journal of Organizational Behavior 22 (2001): 309–28; Wang, Fink, and Cai, “The Effect of Conflict Goals on Avoidance Strategies: What Does Not Communicating Communicate?”
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78. S. Doctoroff, “Reengineering Negotiations,” Sloan Man- agement Review 39 (March 1998): 63–71; D. C. Zetik and A. F. Stuhlmacher, “Goal Setting and Negotiation Performance: A Meta-Analysis,” Group Processes & Inter- group Relations 5 (January 2002): 35–52.
79. B. McRae, The Seven Strategies of Master Negotiators (Toronto: McGraw-Hill Ryerson, 2002), pp. 7–11.
80. A. F. Stuhlmacher, T. L. Gillespie, and M. V. Champagne, “The Impact of Time Pressure in Negotiation: A Meta- Analysis,” International Journal of Conflict Management 9, no. 2 (April 1998): 97–116; C. K. W. De Dreu, “Time Pressure and Closing of the Mind in Negotiation,” Organizational Behavior and Human Decision Processes 91 (July 2003): 280–95. However, one recent study reported that speeding up these concessions leads to better negotiated outcomes. See D. A. Moore, “Myopic Prediction, Self-Destructive Secrecy, and the Unexpected Benefits of Revealing Final Deadlines in Negotiation,” Organizational Behavior and Human Decision Processes 94, no. 2 (2004): 125–39.
81. R. J. Robertson, “Defusing the Exploding Offer: The Farpoint Gambit,” Negotiation Journal 11, no. 3 (1995): 277–285.
82. A. Tversky and D. Kahneman, “Judgment under Uncer- tainty: Heuristics and Biases,” Science 185, no. 4157 (September 1974): 1124–31; J. D. Jasper and S. D. Christman, “A Neuropsychological Dimension for An- choring Effects,” Journal of Behavioral Decision Making 18 (2005): 343–69.
83. S. Kwon and L. R. Weingart, “Unilateral Concessions from the Other Party: Concession Behavior, Attributions, and Negotiation Judgments,” Journal of Applied Psychol- ogy 89, no. 2 (2004): 263–78; R. Fells, Effective Negotia- tion (Cambridge, UK: Cambridge University Press, 2012), Ch. 8.
84. D. Malhotra, “The Fine Art of Making Concessions,” Negotiation (January 2006): 3–5.
85. J. Z. Rubin and B. R. Brown, The Social Psychology of Bargaining and Negotiation (New York: Academic Press, 1976), Ch. 9.
86. For a critical view of the problem solving style in negotia- tion, see Brett, “Managing Organizational Conflict.”
87. L. L. Thompson, “Information Exchange in Negotiation,” Journal of Experimental Social Psychology 27 (1991): 161–179.
Negotiation 21, no. 5 (2012): 621–36; J. A. Wall and T. C. Dunne, “Mediation Research: A Current Review,” Negotiation Journal 28, no. 2 (2012): 217–44.
67. L. B. Bingham et al., “Mediating Employment Disputes at the United States Postal Service: A Comparison of in- House and Outside Neutral Mediator Models,” Review of Public Personnel Administration 20, no. 1 (January 2000): 5–19; T. Nabatchi and L. Blomgren Bingham, “From Postal to Peaceful: Dispute Systems Design in the Usps Redress® Program,” Review of Public Personnel Adminis- tration 30, no. 2 (2010): 211–34. Information was also obtained from the USPS website, http://www.usps.com/ redress/.
68. B. H. Sheppard, “Managers as Inquisitors: Lessons from the Law,” in Bargaining Inside Organizations, ed. M. H. Bazerman and R. J. Lewicki (Beverly Hills, CA: Sage, 1983); N. H. Kim, D. W. Sohn, and J. A. Wall, “Korean Leaders’ (and Subordinates’) Conflict Management,” International Journal of Conflict Management 10, no. 2 (April 1999): 130–53; D. J. Moberg, “Managers as Judges in Employee Disputes: An Occasion for Moral Imagination,” Business Ethics Quarterly 13, no. 4 (2003): 453–77.
69. R. Karambayya and J. M. Brett, “Managers Handling Disputes: Third Party Roles and Perceptions of Fairness,” Academy of Management Journal 32 (1989): 687–704; R. Cropanzano et al., “Disputant Reactions to Manage- rial Conflict Resolution Tactics,” Group & Organization Management 24 (June 1999): 124–153.
70. A. R. Elangovan, “Managerial Intervention in Organiza- tional Disputes: Testing a Prescriptive Model of Strategy Selection,” International Journal of Conflict Management 4 (1998): 301–35; P. S. Nugent, “Managing Conflict: Third-Party Interventions for Managers,” Academy of Management Executive 16, no. 1 (February 2002): 139–54.
71. Bollen, Ittner, and C. Euwema, “Mediating Hierarchical Labor Conflicts: Procedural Justice Makes a Difference— for Subordinates”; R. Nesbit, T. Nabatchi, and L. B. Bingham, “Employees, Supervisors, and Workplace Me- diation: Experiences of Justice and Settlement,” Review of Public Personnel Administration 32, no. 3 (September 1, 2012): 260–287.
72. J. P. Meyer, J. M. Gemmell, and P. G. Irving, “Evaluating the Management of Interpersonal Conflict in Organiza- tions: A Factor-Analytic Study of Outcome Criteria,” Canadian Journal of Administrative Sciences 14 (1997): 1–13; L. B. Bingham, “Employment Dispute Resolution: The Case for Mediation,” Conflict Resolution Quarterly 22, no. 1–2 (2004): 145–74; M. Hyde et al., “Workplace Conflict Resolution and the Health of Employees in the Swedish and Finnish Units of an Industrial Com- pany,” Social Science & Medicine 63, no. 8 (2006): 2218–27.
73. W. H. Ross and D. E. Conlon, “Hybrid Forms of Third- Party Dispute Resolution: Theoretical Implications of Combining Mediation and Arbitration,” Academy of Management Review 25, no. 2 (2000): 416–27; W. H. Ross, C. Brantmeier, and T. Ciriacks, “The Impact of Hybrid Dispute-Resolution Procedures on Constituent Fairness Judgments,” Journal of Applied Social Psychology 32, no. 6 (June 2002): 1151–88.
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3. Many of these perspectives are summarized in R. N. Kanungo, “Leadership in Organizations: Looking Ahead to the 21st Century,” Canadian Psychology 39(1998): 71–82; G. A. Yukl, Leadership in Organizations, 8th ed. (Upper Saddle River, NJ: Pearson Education, 2013).
4. R. House, M. Javidan, and P. Dorfman, “Project GLOBE: An Introduction,” Applied Psychology: An International Review 50(2001): 489–505; R. House et al., “Understanding Cultures and Implicit Leadership Theories across the Globe: An Introduction to Project GLOBE,” Journal of World Business 37(2002): 3–10.
5. C. Hosford, “Flying High,” Incentive 181, no. 12 (2007): 14–20; “Powered by Frontline People,” Employee Engage- ment Today, September 2007.
6. J. A. Raelin, “We the Leaders: In Order to Form a Lead- erful Organization,” Journal of Leadership & Organiza- tional Studies 12, no. 2 (2005): 18–30; C. L. Pearce, J. A. Conger, and E. A. Locke, “Shared Leadership Theory,” Leadership Quarterly 19, no. 5 (2008): 622–28; E. Engel Small and J. R. Rentsch, “Shared Leadership in Teams: A Matter of Distribution,” Journal of Personnel Psychology 9, no. 4 (2010): 203–11.
7. C. A. Beatty, “Implementing Advanced Manufacturing Technologies: Rules of the Road,” Sloan Management Review (1992): 49–60; J. M. Howell, “The Right Stuff: Identifying and Developing Effective Champions of Innovation,” Academy of Management Executive 19, no. 2 (2005): 108–19; J. M. Howell and C. M. Shea, “Effects of Champion Behavior, Team Potency, and External Communication Activities on Predicting Team Perfor- mance,” Group & Organization Management 31, no. 2 (2006): 180–211.
8. J. A. Raelin, Creating Leaderful Organizations: How to Bring out Leadership in Everyone (San Francisco: Berret- Koehler, 2003).
9. Testimony of Randall K. Edington on Behalf of the Arizona Public Service Company, Arizona Public Service Company (Phoenix: 1 June 2011); M. Fallon, “Every Employee Is a Leader,” Nuclear Plant Journal 29, no. 2 (2011): 48–50.
10. S. Marchionne, “Fiat’s Extreme Makeover,” Harvard Business Review (2008): 45–48.
11. J. W. Gardner, On Leadership (New York: The Free Press, 1990), pp. 138–55.
12. Most or all of these elements are included in W. Bennis and B. Nanus, Leaders: The Strategies for Taking Charge (New York: Harper & Row, 1985); N. M. Tichy and M. A. Devanna, The Transformational Leader (New York: Wiley, 1986); B. M. Bass and R. E. Riggio, Transforma- tional Leadership, 2nd ed. (Mahwah, NJ: Lawrence Erlbaum Associates, 2006); J. M. Kouzes and B. Z. Posner, The Leadership Challenge, 5th ed. (San Francisco: Jossey-Bass, 2012).
13. Strategic collective vision has been identified as a key factor in leadership since Chester Barnard’s seminal book in organizational behavior. See C. Barnard, The Functions of the Executive (Cambridge, MA: Harvard University Press, 1938), pp. 86–89.
14. Bennis and Nanus, Leaders, pp. 27–33, 89; R. E. Quinn, Building the Bridge as You Walk on It: A Guide for Leading Change (San Francisco: Jossey-Bass, 2004), Ch. 11; R. Gill, Theory and Practice of Leadership (London: Sage, 2011), Ch. 4; D. O’Connell, K. Hickerson, and
88. S. R. Covey, The 7 Habits of Highly Effective People (New York: The Free Press, 1989), pp. 235–260.
89. R. J. Lewicki et al., Negotiation, 4th ed. (New York: McGraw-Hill/Irwin, 2003), p. 95; M. Olekalns and P. L. Smith, “Testing the Relationships among Negotiators’ Motivational Orientations, Strategy Choices, and Outcomes,” Journal of Experimental Social Psychology 39, no. 2 (March 2003): 101–117.
90. M. Olekalns and P. L. Smith, “Moments in Time: Meta- cognition, Trust, and Outcomes in Dyadic Negotiations,” Personality and Social Psychology Bulletin 31, no. 12 (December 2005): 1696–1707.
91. D. W. Choi, “Shared Metacognition in Integrative Nego- tiation,” International Journal of Conflict Management 21, no. 3 (2010): 309–333.
92. J. M. Brett et al., “Sticks and Stones: Language, Face, and Online Dispute Resolution,” Academy of Management Journal 50, no. 1 (February 2007): 85–99; D. Pietroni et al., “Emotions as Strategic Information: Effects of Other’s Emotional Expressions on Fixed-Pie Perception, Demands, and Integrative Behavior in Negotiation,” Journal of Experimental Social Psychology 44, no. 6 (2008): 1444–54; D. Druckman and M. Olekalns, “Emotions in Negotiation,” Group Decision and Negotiation 17, no. 1 (2008): 1–11; M. J. Boland and W. H. Ross, “Emotional Intelligence and Dispute Mediation in Escalating and De-Escalating Situations,” Journal of Applied Social Psychology 40, no. 12 (2010): 3059–3105.
93. P. J. Carnevale and A. M. Isen, “The Influence of Positive Affect and Visual Access on the Discovery of Integrative Solutions in Bilateral Negotiation,” Organizational Behavior and Human Decision Processes 37 (1986): 1–13; Thompson, The Mind and Heart of the Negotiator.
94. J. W. Salacuse and J. Z. Rubin, “Your Place or Mine? Site Location and Negotiation,” Negotiation Journal 6 (January 1990): 5–10; J. Mayfield et al., “How Location Impacts International Business Negotiations,” Review of Business 19 (December 1998): 21–24.
95. J. Margo, “The Persuaders,” Boss Magazine, 29 December 2000, 38. For a full discussion of the advantages and disadvantages of face-to-face and alternative negotiations situations, see M. H. Bazerman et al., “Negotiation,” Annual Review of Psychology 51 (2000): 279–314.
96. Lewicki et al., Negotiation, pp. 298–322.
CHAPTER 12
1. “Full Year 2009 Telstra Corporation Limited Earnings Conference Call Final,” CQ FD Disclosure, 12 August 2009; P. Smith, “Customers Happy Now,” Australian Financial Review, 19 November 2011, 15; J.-V. Douglas, “Telstra Talks Back,” BRW, 13 October 2011; “Interim 2011 Telstra Corporation Limited Earnings Presentation and Webcast,” CQ FD Disclosure, 9 February 2011; J. Hutchinson, “Project New Becomes ‘Business as Usual’ at Telstra,” Computerworld (Australia), 10 February 2011; P. Stafford, “Five Lessons You Can Learn from Telstra’s 60-Person Social Media Team,” (17 April 2012), http:// www.smartcompany.com.au; J. McDuling, “CEO Hot Sear,” Financial Review Smart Investor, 1 March 2012, 52.
2. Most of these statistics were collected in September 2013. Library of Congress data were collected in 2010.
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19. R. Shook, Heart & Soul: Five American Companies that Are Making the World a Better Place (Dallas: BenBella Books, 2010), pp. 155–222; Kouzes and Posner, The Leadership Challenge, pp. 79–81.
20. K. W. Parry and H. Hansen, “The Organizational Story as Leadership,” Leadership 3, no. 3 (2007): 281–300; D. A. Waldman, P. A. Balthazard, and S. J. Peterson, “Leadership and Neuroscience: Can We Revolutionize the Way That Inspirational Leaders Are Identified and Developed?” Academy of Management Perspectives 25, no. 1 (2011): 60–74; S. Denning, The Leader’s Guide to Storytelling: Mastering the Art and Discipline of Business Narrative, Revised ed. (San Francisco: Jossey-Bass, 2011).
21. S. Franklin, The Heroes: A Saga of Canadian Inspiration (Toronto: McClelland and Stewart, 1967); L. Black, “Hamburger Diplomacy,” Report on Business Magazine August 1988, 30–36.
22. D. E. Berlew, “Leadership and Organizational Excite- ment,” California Management Review 17, no. 2 (1974): 21–30; Bennis and Nanus, Leaders, pp. 43–55; T. Simons, “Behavioral Integrity: The Perceived Alignment between Managers’ Words and Deeds as a Research Focus,” Organization Science 13, no. 1 (2002): 18–35.
23. M. Webb, “Executive Profile: Peter C. Farrell,” San Diego Business Journal, 24 March 2003, 32; P. Benesh, “He Likes Them Breathing Easy,” Investor’s Business Daily, 13 September 2005, A04. For a discussion of trust in leadership, see C. S. Burke et al., “Trust in Leadership: A Multi-Level Review and Integration,” Leadership Quar- terly 18, no. 6 (2007): 606–32. The survey on leading by example is reported in J. C. Maxwell, “People Do What People See,” BusinessWeek, 19 November 2007, 32.
24. K. Tyler, “Evaluating Values,” HRMagazine, April 2011, 57.
25. Bass and Riggio, Transformational Leadership, p. 7; Kouzes and Posner, The Leadership Challenge, Chs. 6 and 7.
26. W. E. Baker and J. M. Sinkula, “The Synergistic Effect of Market Orientation and Learning Orientation on Orga- nizational Performance,” Academy of Marketing Science Journal 27, no. 4 (1999): 411–27; Z. Emden, A. Yaprak, and S. T. Cavusgil, “Learning from Experience in Inter- national Alliances: Antecedents and Firm Performance Implications,” Journal of Business Research 58, no. 7 (2005): 883–92.
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in Leadership: The Cutting Edge, ed. J. G. Hunt and L. L. Larson (Carbondale, IL.: Southern Illinois University Press, 1977), 189–207; J. A. Conger, “Charismatic Leadership,” in The Sage Handbook of Leadership, ed. A. Bryman, et al. (London: Sage, 2011), 86–102.
29. J. E. Barbuto Jr., “Taking the Charisma out of Trans- formational Leadership,” Journal of Social Behavior & Personality 12(1997): 689–97; Y. A. Nur, “Charisma and Managerial Leadership: The Gift That Never Was,” Business Horizons 41(1998): 19–26; M. D. Mumford and J. R. Van Doorn, “The Leadership of Pragmatism— Reconsidering Franklin in the Age of Charisma,” Leader- ship Quarterly 12, no. 3 (2001): 279–309; A. Fanelli, “Bringing out Charisma: CEO Charisma and External Stakeholders,” Academy of Management Review 31, no. 4 (2006): 1049–61; M. J. Platow et al., “A Special Gift We Bestow on You for Being Representative of Us: Considering Leader Charisma from a Self-Categorization Perspective,” British Journal of Social Psychology 45, no. 2 (2006): 303–20.
30. X. Wang, “A Mysterious Message Millionaire,” China Daily, 12 January 2009; R. Kapadia, “China’s King of All Social Media,” Barron’s, 18 May 2013; W. Wee, “Tencent CEO Pony Ma Talks Wechat, Competition, Going Mobile and Global,” Techinasia, 7 May 2013.
31. B. Shamir et al., “Correlates of Charismatic Leader Be- havior in Military Units: Subordinates’ Attitudes, Unit Characteristics, and Superiors’ Appraisals of Leader Per- formance,” Academy of Management Journal 41, no. 4 (1998): 387–409; R. E. De Vries, R. A. Roe, and T. C. B. Taillieu, “On Charisma and Need for Leadership,” European Journal of Work and Organizational Psychology 8(1999): 109–33; R. Khurana, Searching for a Corporate Savior: The Irrational Quest for Charismatic CEOs (Princ- eton, NJ: Princeton University Press, 2002); R. E. de Vries, R. D. Pathak, and A. R. Paquin, “The Paradox of Power Sharing: Participative Charismatic Leaders Have Subordinates with More Instead of Less Need for Leader- ship,” European Journal of Work and Organizational Psychology 20, no. 6 (2010): 779–804. The effect of charismatic leadership on follower dependence was also noted earlier by noted U.S. government leader John Gardner. See Gardner, On Leadership, pp. 34–36.
32. J. Lipman-Blumen, “A Pox on Charisma: Why Connec- tive Leadership and Character Count,” in The Drucker Difference: What the World’s Greatest Management Thinker Means to Today’s Business Leaders, ed. C. L. Pearce, J. A. Maciariello, and H. Yamawaki (New York: McGraw-Hill, 2010), 149–74.
33. A. Mackey, “The Effect of CEOs on Firm Performance,” Strategic Management Journal 29, no. 12 (2008): 1357–67.
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44. A. K. Korman, “Consideration, Initiating Structure, and Organizational Criteria—a Review,” Personnel Psychology 19(1966): 349–62; E. A. Fleishman, “Twenty Years of Consideration and Structure,” in Current Developments in the Study of Leadership, ed. E. A. Fleishman and J. C. Hunt (Carbondale, IL: Southern Illinois University Press, 1973), 1–40; T. A. Judge, R. F. Piccolo, and R. Ilies, “The Forgotten Ones?: The Validity of Consideration and Initiating Structure in Leadership Research,” Journal of Applied Psychology 89, no. 1 (2004): 36–51; D. S. Derue et al., “Trait and Behavioral Theories of Leader- ship: An Integration and Meta-Analytic Test of Their Relative Validity,” Personnel Psychology 64, no. 1 (2011): 7–52; Yukl, Leadership in Organizations, pp. 62–75.
45. B. A. Scott et al., “A Daily Investigation of the Role of Manager Empathy on Employee Well-Being,” Organiza- tional Behavior and Human Decision Processes 113, no. 2 (2010): 127–40.
46. V. V. Baba, “Serendipity in Leadership: Initiating Structure and Consideration in the Classroom,” Human Relations 42(1989): 509–25.
47. R. K. Greenleaf, Servant Leadership: A Journey into the Nature of Legitimate Power & Greatness (Mahwah, NJ: Paulist Press, 1977; repr., 2002); D. van Dierendonck and K. Patterson, “Servant Leadership: An Introduction,” in Servant Leadership: Developments in Theory and Re- search, ed. D. van Dierendonck and K. Patterson (Houndmills UK: Palgrave Macmillan, 2010), 3–11.
48. Greenleaf, Servant Leadership, p. 27. 49. S. Sendjaya, J. C. Sarros, and J. C. Santora, “Defining
and Measuring Servant Leadership Behaviour in Organi- zations,” Journal of Management Studies 45, no. 2 (2008): 402–24; R. C. Liden et al., “Servant Leadership: Devel- opment of a Multidimensional Measure and Multi-Level Assessment,” Leadership Quarterly 19, no. 2 (2008): 161–77; K.-Y. Ng and C. S.-K. Koh, “Motivation to Serve: Understanding the Heart of the Servant-Leader and Servant Leadership Behaviours,” in Servant Leader- ship: Developments in Theory and Research, ed. D. van Dierendonck and K. Patterson (Houndmills UK: Palgrave Macmillan, 2010), 90–104; D. van Dierendonck, “Servant Leadership: A Review and Synthesis,” Journal of Management 37, no. 4 (2011): 1228–61.
50. J. Mattson, “‘Sergeant’ Means ‘Servant’: How NCOs Typify the Servant Leader,” NCO Journal, 14 May 2013. For a more detailed discussion of servant leadership in the military, see: D. Campbell, The Leader’s Code: Mission, Character, Service, and Getting the Job Done (New York: Random House, 2013).
51. S. J. Peterson, B. M. Galvin, and D. Lange, “CEO Servant Leadership: Exploring Executive Characteristics and Firm Performance,” Personnel Psychology 65, no. 3 (2012): 565–96.
52. S. Kerr et al., “Towards a Contingency Theory of Leader- ship Based upon the Consideration and Initiating Struc- ture Literature,” Organizational Behavior and Human Performance 12(1974): 62–82; L. L. Larson, J. G. Hunt,
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36. B. S. Pawar and K. K. Eastman, “The Nature and Impli- cations of Contextual Influences on Transformational Leadership: A Conceptual Examination,” Academy of Management Review 22(1997): 80–109; C. P. Egri and S. Herman, “Leadership in the North American Environ- mental Sector: Values, Leadership Styles, and Contexts of Environmental Leaders and Their Organizations,” Acad- emy of Management Journal 43, no. 4 (2000): 571–604.
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38. R. J. House and R. N. Aditya, “The Social Scientific Study of Leadership: Quo Vadis?” Journal of Management 23, no. 3 (1997): 409–73.
39. Bennis and Nanus, Leaders, p. 20. Peter Drucker is also widely cited as the source of this quotation. The closest passage we could find, however, is in the first two pages of The Effective Executive (1966) where Drucker states that effective executives “get the right things done.” On the next page, he states that manual workers only need efficiency, “that is, the ability to do things right rather than the ability to get the right things done.” See P. F. Drucker, The Effective Executive (New York: Harper Business, 1966), pp. 1–2.
40. Yukl and Lepsinger, “Why Integrating the Leading and Managing Roles Is Essential for Organizational Effectiveness.”
41. C. Riley, “At the Table with…Karen Forrester,” Eat Out Magazine, 12 January 2010; “The Arena Lunch with Karen Forrester, UK Managing Director, T. G. I. Friday’s,” (UK: Arena: The Hospitality Network, 11 July 2011), http://www.arena.org.uk/event/198 (accessed 11 September 2013); P. Martin, “Forrester Leads Friday’s out of the Woods,” Peach Report, 20 February 2013, www.peach- report.com.
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72. D. F. Elloy and A. Randolph, “The Effect of Superleader Behavior on Autonomous Work Groups in a Govern- ment Operated Railway Service,” Public Personnel Man- agement 26(1997): 257–72; C. C. Manz and H. Sims Jr., The New SuperLeadership: Leading Others to Lead Them- selves (San Francisco: Berrett-Koehler, 2001).
73. M. L. Loughry, “Coworkers Are Watching: Performance Implications of Peer Monitoring,” Academy of Manage- ment Proceedings (2002): O1–O6.
74. P. M. Podsakoff and S. B. MacKenzie, “Kerr and Jermier’s Substitutes for Leadership Model: Background, Empirical Assessment, and Suggestions for Future Research,” Lead- ership Quarterly 8(1997): 117–32; S. D. Dionne et al., “Neutralizing Substitutes for Leadership Theory: Leader- ship Effects and Common-Source Bias,” Journal of Applied Psychology 87, no. 3 (2002): 454–64; J. R. Villa et al., “Problems with Detecting Moderators in Leadership Re- search Using Moderated Multiple Regression,” Leadership Quarterly 14, no. 1 (2003): 3–23; S. D. Dionne et al., “Substitutes for Leadership, or Not,” Leadership Quarterly 16, no. 1 (2005): 169–93.
75. J. R. Meindl, “On Leadership: An Alternative to the Conventional Wisdom,” Research in Organizational Behavior 12(1990): 159–203; L. R. Offermann, J. J. K. Kennedy, and P. W. Wirtz, “Implicit Leadership Theories: Content, Structure, and Generalizability,” Leadership Quarterly 5, no. 1 (1994): 43–58; R. J. Hall and R. G. Lord, “Multi-Level Information Processing Explanations of Followers’ Leadership Perceptions,” Leadership Quar- terly 6(1995): 265–87; O. Epitropaki and R. Martin, “Implicit Leadership Theories in Applied Settings: Factor Structure, Generalizability, and Stability over Time,” Journal of Applied Psychology 89, no. 2 (2004): 293–310. For a broader discussion of the social construction of leadership, see G. T. Fairhurst and D. Grant, “The Social Construction of Leadership: A Sailing Guide,” Manage- ment Communication Quarterly 24, no. 2 (2010): 171–210.
and R. N. Osbom, “The Great Hi-Hi Leader Behavior Myth: A Lesson from Occam’s Razor,” Academy of Management Journal 19(1976): 628–41.
53. For a thorough study of how expectancy theory of moti- vation relates to leadership, see R. G. Isaac, W. J. Zerbe, and D. C. Pitt, “Leadership and Motivation: The Effec- tive Application of Expectancy Theory,” Journal of Managerial Issues 13(2001): 212–26.
54. R. J. House, “A Path Goal Theory of Leader Effective- ness,” Administrative Science Quarterly 16, no. 3 (1971): 321–39; M. G. Evans, “Extensions of a Path-Goal The- ory of Motivation,” Journal of Applied Psychology 59(1974): 172–78; R. J. House and T. R. Mitchell, “Path-Goal Theory of Leadership,” Journal of Contempo- rary Business (1974): 81–97; M. G. Evans, “Path Goal Theory of Leadership,” in Leadership, ed. L. L. Neider and C. A. Schriesheim (Greenwich, CT: Information Age Publishing, 2002), 115–38.
55. R. J. House, “Path-Goal Theory of Leadership: Lessons, Legacy, and a Reformulated Theory,” The Leadership Quarterly 7, no. 3 (1996): 323–52.
56. J. Indvik, “Path-Goal Theory of Leadership: A Meta- Analysis,” Academy of Management Proceedings (1986): 189–92; J. C. Wofford and L. Z. Liska, “Path-Goal Theories of Leadership: A Meta-Analysis,” Journal of Management 19(1993): 857–76.
57. J. D. Houghton and S. K. Yoho, “Toward a Contingency Model of Leadership and Psychological Empowerment: When Should Self-Leadership Be Encouraged?” Journal of Leadership & Organizational Studies 11, no. 4 (2005): 65–83.
58. R. T. Keller, “A Test of the Path-Goal Theory of Leader- ship with Need for Clarity as a Moderator in Research and Development Organizations,” Journal of Applied Psychology 74(1989): 208–12.
59. R. Tannenbaum and W. H. Schmidt, “How to Choose a Leadership Pattern,” Harvard Business Review (1973): 162–80.
60. R. P. Vecchio, J. E. Justin, and C. L. Pearce, “The Utility of Transactional and Transformational Leadership for Predicting Performance and Satisfaction within a Path- Goal Theory Framework,” Journal of Occupational and Organizational Psychology 81(2008): 71–82.
61. B. Carroll and L. Levy, “Defaulting to Management: Leadership Defined by What It Is Not,” Organization 15, no. 1 (2008): 75–96; I. Holmberg and M. Tyrstrup, “Well Then—What Now? An Everyday Approach to Managerial Leadership,” Leadership 6, no. 4 (2010): 353–72.
62. C. A. Schriesheim and L. L. Neider, “Path-Goal Leader- ship Theory: The Long and Winding Road,” Leadership Quarterly 7 (1996): 317–21.
63. Kelly Services, The Leadership Disconnect (Troy, MI: K. Services, August 2012).
64. P. Hersey and K. H. Blanchard, Management of Organi- zational Behavior: Utilizing Human Resources, 5th ed. (Englewood Cliffs, NJ: Prentice Hall, 1988).
65. R. P. Vecchio, “Situational Leadership Theory: An Examination of a Prescriptive Theory,” Journal of Applied Psychology 72(1987): 444–51; W. Blank, J. R. Weitzel, and S. G. Green, “A Test of the Situational Leadership Theory,” Personnel Psychology 43(1990): 579–97; C. L.
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Executive 5(1991): 48–60; R. M. Aditya, R. J. House, and S. Kerr, “Theory and Practice of Leadership: Into the New Millennium,” in Industrial and Organizational Psychology: Linking Theory with Practice, ed. C. L. Cooper and E. A. Locke (Oxford, UK: Blackwell, 2000), 130–65; D. Goleman, R. Boyatzis, and A. McKee, Primal Leaders (Boston: Harvard Business School Press, 2002); T. A. Judge et al., “Personality and Leadership: A Qualitative and Quantitative Review,” Journal of Applied Psychology 87, no. 4 (2002): 765–80; T. A. Judge, A. E. Colbert, and R. Ilies, “Intelligence and Leadership: A Quantitative Review and Test of Theoretical Propositions,” Journal of Applied Psychology 89, no. 3 (2004): 542–52; Zaccaro, Kemp, and Bader, “Leader Traits and Attributes.”
86. M. Popper et al., “The Capacity to Lead: Major Psycho- logical Differences between Leaders and Nonleaders,” Military Psychology 16, no. 4 (2004): 245–63; R. G. Lord and R. J. Hall, “Identity, Deep Structure and the Development of Leadership Skill,” Leadership Quarterly 16, no. 4 (2005): 591–615; D. V. Day, M. M. Harrison, and S. M. Halpin, An Integrative Approach to Leader De- velopment: Connecting Adult Development, Identity, and Expertise (New York: Routledge, 2009); D. S. DeRue and S. J. Ashford, “Who Will Lead and Who Will Follow? A Social Process of Leadership Identity Construction in Organizations,” Academy of Management Review 35, no. 4 (2010): 627–47.
87. Carroll and Levy, “Defaulting to Management: Leadership Defined by What It Is Not.”
88. R. Davidovitz et al., “Leaders as Attachment Figures: Leaders’ Attachment Orientations Predict Leadership- Related Mental Representations and Followers’ Perfor- mance and Mental Health,” Journal of Personality and Social Psychology 93, no. 4 (2007): 632–50.
89. J. B. Miner, “Twenty Years of Research on Role Motiva- tion Theory of Managerial Effectiveness,” Personnel Psychology 31(1978): 739–60; House and Aditya, “The Social Scientific Study of Leadership: Quo Vadis?”
90. The large-scale studies are reported in C. Savoye, “Workers Say Honesty Is Best Company Policy,” Christian Science Monitor, June 15, 2000; J. Schettler, “Leadership in Corporate America,” Training & Development, September 2002, 66–73; Kouzes and Posner, The Leadership Challenge, Ch. 2.
91. J. Hedlund et al., “Identifying and Assessing Tacit Knowledge: Understanding the Practical Intelligence of Military Leaders,” Leadership Quarterly 14, no. 2 (2003): 117–40; R. J. Sternberg, “A Systems Model of Leader- ship: WICS,” American Psychologist 62, no. 1 (2007): 34–42.
92. J. George, “Emotions and Leadership: The Role of Emotional Intelligence,” Human Relations 53(2000): 1027–55; Goleman, Boyatzis, and McKee, Primal Leaders; Lord and Hall, “Identity, Deep Structure and the Devel- opment of Leadership Skill”; C. Skinner and P. Spurgeon, “Valuing Empathy and Emotional Intelligence in Health Leadership: A Study of Empathy, Leadership Behaviour and Outcome Effectiveness,” Health Services Management Research 18, no. 1 (2005): 1–12.
93. B. George, Authentic Leadership (San Francisco: Jossey- Bass, 2004); W. L. Gardner et al., “‘Can You See the Real Me?’ A Self-Based Model of Authentic Leader and
76. R. G. Lord et al., “Contextual Constraints on Prototype Generation and Their Multilevel Consequences for Leadership Perceptions,” Leadership Quarterly 12, no. 3 (2001): 311–38; K. A. Scott and D. J. Brown, “Female First, Leader Second? Gender Bias in the Encoding of Leadership Behavior,” Organizational Behavior and Human Decision Processes 101(2006): 230–42; S. J. Shondrick, J. E. Dinh, and R. G. Lord, “Developments in Implicit Leadership Theory and Cognitive Science: Applications to Improving Measurement and Under- standing Alternatives to Hierarchical Leadership,” Leadership Quarterly 21, no. 6 (2010): 959–78.
77. S. F. Cronshaw and R. G. Lord, “Effects of Categoriza- tion, Attribution, and Encoding Processes on Leadership Perceptions,” Journal of Applied Psychology 72(1987): 97–106; J. L. Nye and D. R. Forsyth, “The Effects of Prototype-Based Biases on Leadership Appraisals: A Test of Leadership Categorization Theory,” Small Group Research 22(1991): 360–79.
78. L. M. Fisher, “Ricardo Semler Won’t Take Control,” strategy 1 business, no. 41 (2005): 1–11.
79. Meindl, “On Leadership: An Alternative to the Conven- tional Wisdom,” 163; B. Schyns, J. R. Meindl, and M. A. Croon, “The Romance of Leadership Scale: Cross- Cultural Testing and Refinement,” Leadership 3, no. 1 (2007): 29–46; J. Felfe and L.-E. Petersen, “Romance of Leadership and Management Decision Making,” Euro- pean Journal of Work and Organizational Psychology 16, no. 1 (2007): 1–24.
80. J. Pfeffer, “The Ambiguity of Leadership,” Academy of Management Review 2(1977): 102–12.
81. R. Weber et al., “The Illusion of Leadership: Misattribu- tion of Cause in Coordination Games,” Organization Science 12, no. 5 (2001): 582–98; N. Ensari and S. E. Murphy, “Cross-Cultural Variations in Leadership Perceptions and Attribution of Charisma to the Leader,” Organizational Behavior and Human Decision Processes 92(2003): 52–66; M. L. A. Hayward, V. P. Rindova, and T. G. Pollock, “Believing One’s Own Press: The Causes and Consequences of CEO Celebrity,” Strategic Manage- ment Journal 25, no. 7 (2004): 637–53.
82. The history of the trait perspective of leadership, as well as current research on this topic, is nicely summarized in S. J. Zaccaro, C. Kemp, and P. Bader, “Leader Traits and Attributes,” in The Nature of Leadership, ed. J. Antonakis, A. T. Cianciolo, and R. J. Sternberg (Thousand Oaks, CA: Sage, 2004), 101–24.
83. R. M. Stogdill, Handbook of Leadership (New York: The Free Press, 1974), Ch. 5.
84. J. Intagliata, D. Ulrich, and N. Smallwood, “Leveraging Leadership Competencies to Produce Leadership Brand: Creating Distinctiveness by Focusing on Strategy and Results,” Human Resources Planning 23, no. 4 (2000): 12–23; J. A. Conger and D. A. Ready, “Rethinking Lead- ership Competencies,” Leader to Leader (2004): 41–47; Zaccaro, Kemp, and Bader, “Leader Traits and Attributes.” For a recent discussion on leadership traits and evolution- ary psychology, see: Judge, Piccolo, and Kosalka, “The Bright and Dark Sides of Leader Traits: A Review and Theoretical Extension of the Leader Trait Paradigm.”
85. This list is based on S. A. Kirkpatrick and E. A. Locke, “Leadership: Do Traits Matter?” Academy of Management
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Leadership Theories across the Globe: An Introduction to Project GLOBE.”
106. J. C. Jesiuno, “Latin Europe Cluster: From South to North,” Journal of World Business 37(2002): 88. Another GLOBE study, of Iranian managers, also reported that “charismatic visionary” stands out as a primary leadership dimension. See A. Dastmalchian, M. Javidan, and K. Alam, “Effective Leadership and Culture in Iran: An Empirical Study,” Applied Psychology: An International Review 50(2001): 532–58.
107. D. N. Den Hartog et al., “Culture Specific and Cross- Cultural Generalizable Implicit Leadership Theories: Are Attributes of Charismatic/Transformational Leadership Universally Endorsed?” Leadership Quarterly 10(1999): 219–56; F. C. Brodbeck et al., “Cultural Variation of Leadership Prototypes across 22 European Countries,” Journal of Occupational and Organizational Psychology 73(2000): 1–29; E. Szabo et al., “The Europe Cluster: Where Employees Have a Voice,” Journal of World Business 37(2002): 55–68. The Mexican study is reported in C. E. Nicholls, H. W. Lane, and M. B. Brechu, “Taking Self-Managed Teams to Mexico,” Academy of Management Executive 13(1999): 15–25.
108. G. N. Powell, “One More Time: Do Female and Male Managers Differ?” Academy of Management Executive 4(1990): 68–75; M. L. van Engen and T. M. Willemsen, “Sex and Leadership Styles: A Meta-Analysis of Research Published in the 1990s,” Psychological Reports 94, no. 1 (2004): 3–18.
109. R. Sharpe, “As Leaders, Women Rule,” BusinessWeek, 20 November 2000, 74; M. Sappenfield, “Women, It Seems, Are Better Bosses,” Christian Science Monitor, 16 January 2001; A. H. Eagly and L. L. Carli, “The Female Leader- ship Advantage: An Evaluation of the Evidence,” Leader- ship Quarterly 14, no. 6 (2003): 807–34; A. H. Eagly, M. C. Johannesen-Schmidt, and M. L. van Engen, “Transformational, Transactional, and Laissez-Faire Leadership Styles: A Meta-Analysis Comparing Women and Men,” Psychological Bulletin 129(2003): 569–91.
110. A. H. Eagly, S. J. Karau, and M. G. Makhijani, “Gender and the Effectiveness of Leaders: A Meta-Analysis,” Psychological Bulletin 117(1995): 125–45; J. G. Oakley, “Gender-Based Barriers to Senior Management Positions: Understanding the Scarcity of Female CEOs,” Journal of Business Ethics 27(2000): 821–34; N. Z. Stelter, “Gender Differences in Leadership: Current Social Issues and Future Organizational Implications,” Journal of Leadership Studies 8(2002): 88–99; M. E. Heilman et al., “Penalties for Success: Reactions to Women Who Succeed at Male Gender-Typed Tasks,” Journal of Applied Psychology 89, no. 3 (2004): 416–27; A. H. Eagly, “Achieving Relational Authenticity in Leadership: Does Gender Matter?” Leadership Quarterly 16, no. 3 (2005): 459–74.
CHAPTER 13
1. Valve Corporation, Valve Handbook for Employees (Bellevue, WA: Valve Press, 2012); M. Abrash, “Valve: How I Got Here, What It’s Like, and What I’m Doing,” Ramblings in Valve Time, 13 April 2012, http://blogs. valvesoftware.com/abrash; J. Cook, “Valve Designer Greg Coomer: How Getting Rid of Bosses Makes for Better Games,” GeekWire, 29 October 2012; N. Wingfield,
Follower Development,” Leadership Quarterly 16(2005): 343–72; B. George, True North (San Francisco: Jossey-Bass, 2007), Ch. 4; M. E. Palanski and F. J. Yammarino, “Integ- rity and Leadership: Clearing the Conceptual Confusion,” European Management Journal 25, no. 3 (2007): 171–84; F. O. Walumbwa et al., “Authentic Leadership: Develop- ment and Validation of a Theory-Based Measure,” Journal of Management 34, no. 1 (2008): 89–126.
94. W. G. Bennis and R. J. Thomas, “Crucibles of Leader- ship,” Harvard Business Review 80, no. 9 (2002): 39–45; R. J. Thomas, Crucibles of Leadership: How to Learn from Experience to Become a Great Leader (Boston: Harvard Business Press, 2008).
95. G. Kohlrieser, “Herna Verhagen, Managing Director TNT Group HR: ‘Live Your Dream; Success Is Built on Passion,’” States News Service, 13 April 2010.
96. Liza Minnelli makes this statement to explain why she doesn’t perform the songs made famous by her mother, Judy Garland. The earliest versions of this quotation are found in New Woman magazine, Vol. 8, 1978, and Vin- cente Minnelli’s 1975 autobiography. The version cited here is from E. Santosuosso, “Minnelli Brings a Real-Life Concert to Town,” Boston Globe, 24 September 1992, 61.
97. B. J. Avolio et al., “Unlocking the Mask: A Look at the Process by Which Authentic Leaders Impact Follower Attitudes and Behaviors,” Leadership Quarterly 15(2004): 801–23.
98. R. J. Ellis, “Self-Monitoring and Leadership Emergence in Groups,” Personality and Social Psychology Bulletin 14, no. 4 (1988): 681–93; D. V. Day et al., “Self-Monitoring Person- ality at Work: A Meta-Analytic Investigation of Construct Validity,” Journal of Applied Psychology 87, no. 2 (2002): 390–401; I. O. Tueretgen, P. Unsal, and I. Erdem, “The Effects of Sex, Gender Role, and Personality Traits on Leader Emergence-Does Culture Make a Difference?” Small Group Research 39, no. 5 (2008): 588–615; D. U. Bryant et al., “The Interaction of Self-Monitoring and Organizational Position on Perceived Effort,” Journal of Managerial Psychology 26, no. 2 (2011): 138–54.
99. A. G. Bedeian and D. V. Day, “Can Chameleons Lead?” Leadership Quarterly 15, no. 5 (2004): 687–718.
100. W. Bennis, “We Need Leaders,” Executive Excellence 27, no. 12 (2010): 4.
101. Bedeian and Day, “Can Chameleons Lead?” 102. D. Gruenfeld and L. Zander, “Authentic Leadership Can
Be Bad Leadership,” Harvard Business Review Blog, 2011, http://blogs.hbr.org.
103. R. Jacobs, “Using Human Resource Functions to Enhance Emotional Intelligence,” in The Emotionally Intelligent Workplace, ed. C. Cherniss and D. Goleman (San Francisco: Jossey-Bass, 2001), 161–63; Conger and Ready, “Rethinking Leadership Competencies.”
104. R. G. Lord and D. J. Brown, Leadership Processes and Self-Identity: A Follower-Centered Approach to Leadership (Mahwah, NJ: Lawrence Erlbaum Associates, 2004); R. Bolden and J. Gosling, “Leadership Competencies: Time to Change the Tune?” Leadership 2, no. 2 (2006): 147–63.
105. Six of the Project GLOBE clusters are described in a special issue of the Journal of World Business, 37 (2000). For an overview of Project GLOBE, see House, Javidan, and Dorfman, “Project GLOBE: An Introduction”; House et al., “Understanding Cultures and Implicit
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“Game Maker without a Rule Book,” The New York Times, 9 September 2012.
2. S. Ranson, R. Hinings, and R. Greenwood, “The Structuring of Organizational Structure,” Administrative Science Quarterly 25(1980): 1–14; J.-E. Johanson, “Intraorganizational Influence,” Management Communi- cation Quarterly 13(2000): 393–435; K. Walsh, “Inter- preting the Impact of Culture on Structure,” Journal of Applied Behavioral Science 40, no. 3 (2004): 302–22.
3. H. Mintzberg, The Structuring of Organizations (Englewood Cliffs, NJ: Prentice Hall, 1979), pp. 2–3.
4. E. E. Lawler III, Motivation in Work Organizations (Monterey, CA: Brooks/Cole, 1973); M. A. Campion, “Ability Requirement Implications of Job Design: An Interdisciplinary Perspective,” Personnel Psychology 42(1989): 1–24.
5. G. S. Becker and K. M. Murphy, “The Division-of- Labor, Coordination Costs and Knowledge,” Quarterly Journal of Economics 107, no. 4 (1992): 1137–60; L. Borghans and B. Weel, “The Division of Labour, Worker Organisation, and Technological Change,” The Economic Journal 116, no. 509 (2006): F45–F72.
6. Mintzberg, The Structuring of Organizations, Ch. 1; D. A. Nadler and M. L. Tushman, Competing by Design: The Power of Organizational Architecture (New York: Oxford University Press, 1997), Ch. 6; J. R. Galbraith, Designing Organizations: An Executive Guide to Strategy, Structure, and Process (San Francisco, CA: Jossey-Bass, 2002), Ch. 4.
7. J. Stephenson, Jr., “Making Humanitarian Relief Net- works More Effective: Operational Coordination, Trust and Sense Making,” Disasters 29, no. 4 (2005): 337.
8. A. Willem, M. Buelens, and H. Scarbrough, “The Role of Inter-Unit Coordination Mechanisms in Knowledge Sharing: A Case Study of a British MNC,” Journal of Information Science 32, no. 6 (2006): 539–61; R. R. Gulati, “Silo Busting,” Harvard Business Review 85, no. 5 (2007): 98–108.
9. Borghans and Weel, “The Division of Labour, Worker Organisation, and Technological Change.”
10. T. Van Alphen, “Magna in Overdrive,” Toronto Star, 24 July 2006.
11. Galbraith, Designing Organizations, pp. 66–72; D. Aaker, Spanning Silos: The New CMO Imperative (Cambridge, MA: Harvard Business Press, 2008), pp. 95–96; A. Pike, Brands and Branding Geographies (Cheltenham, UK: Edward Elgar, 2011), p. 133.
12. M. Hoque, M. Akter, and Y. Monden, “Concurrent Engineering: A Compromise Approach to Develop a Feasible and Customer-Pleasing Product,” International Journal of Production Research 43, no. 8 (2005): 1607–24; S. M. Sapuan, M. R. Osman, and Y. Nukman, “State of the Art of the Concurrent Engineering Technique in the Automotive Industry,” Journal of Engineering Design 17, no. 2 (2006): 143–57; D. H. Kincade, C. Regan, and F. Y. Gibson, “Concurrent Engineering for Product Development in Mass Customization for the Apparel Industry,” International Journal of Operations & Production Management 27, no. 6 (2007): 627–49.
13. A. H. Van De Ven, A. L. Delbecq, and R. J. Koenig Jr., “Determinants of Coordination Modes within Organiza- tions,” American Sociological Review 41, no. 2 (1976): 322–38.
14. M. Villano, “The Control Freak in the Corner Office,” The New York Times, 28 May 2006, 10; “One-Third of Employees Feel Micromanaged by Boss,” news release (Skillman, NJ: BlessingWhite, 27 October 2008); “Lack of Communication with Staff Most Damaging to Morale, Survey Finds,” news release (Menlo Park, CA: Accountemps, 20 November 2008); T. Gould, “How Employees Really Feel About Their Bosses,” HR Morning, 7 July 2011; Kelly Services, Effective Employers: The Evolving Workforce, Kelly Global Workforce Index, Kelly Services (Troy, MI: November 2011).
15. Y.-M. Hsieh and A. Tien-Hsieh, “Enhancement of Service Quality with Job Standardisation,” Service Industries Journal 21(2001): 147–66.
16. M. Guadalupe, J. Wulf, and H. Li, “The Rise of the Functional Manager: Changes Afoot in the C-Suite,” European Business Review (2012); G. L. Neilson and J. Wulf, “How Many Direct Reports?” Harvard Business Review 90, no. 4 (2012): 112–19.
17. For recent discussion of span of control, see N. A. Theobald and S. Nicholson-Crotty, “The Many Faces of Span of Control: Organizational Structure across Multiple Goals,” Administration Society 36, no. 6 (2005): 648–60; R. M. Meyer, “Span of Management: Concept Analysis,” Journal of Advanced Nursing 63, no. 1 (2008): 104–12.
18. D. D. Van Fleet and A. G. Bedeian, “A History of the Span of Management,” Academy of Management Review 2(1977): 356–72; H. Fayol, General and Industrial Management, trans. C. Storrs (London: Pitman, 1949); D. A. Wren, A. G. Bedeian, and J. D. Breeze, “The Foundations of Henri Fayol’s Administrative Theory,” Management Decision 40, no. 9 (2002): 906–18.
19. D. Drickhamer, “Lessons from the Leading Edge,” Industry Week, 21 February 2000, 23–26; State of Iowa, “Results Iowa: Operational Scan,” (1 February 2008), http://www.resultsiowa.org (accessed 23 May 2010).
20. B. Davison, “Management Span of Control: How Wide Is Too Wide?” Journal of Business Strategy 24, no. 4 (2003): 22–29; D. D. Van Fleet and A. G. Bedeian, “A History of the Span of Management,” Academy of Man- agement Review 2(1977): 356–72; State of Iowa, “Results Iowa: Operational Scan”; S. Nix et al., Span of Control in City Government Increases Overall, Office of City Auditor, City of Seattle (Seattle, WA: 19 September 2005); “Fedex 2008 Shareowners Meeting,” (Memphis, TN: Fedex, 29 September 2008); J. McLellan, Administrative Review: An Agenda for Business Improvement, Multnomah County (Portland, OR: 19 May 2009); D. Thompson, “More on the Span of Control Issue,” Statesman Journal Blog (Oregon), 16 May 2011.
21. G. Anders, “Overseeing More Employees—with Fewer Managers—Consultants Are Urging Companies to Loosen Their Supervising Views,” The Wall Street Journal, 24 March 2008, B6.
22. J. Greenwald, “Ward Compares the Best with the Rest,” Business Insurance, 26 August 2002, 16.
23. J. H. Gittell, “Supervisory Span, Relational Coordination and Flight Departure Performance: A Reassessment of Postbureaucracy Theory,” Organization Science 12, no. 4 (2001): 468–83.
24. J. Denby, “Leaders in African Electricity,” African Business Review, 11 May 2010.
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Learning and Societal Institutions: An Integrated Frame- work,” Organization Studies 21(2000): 487–513.
39. W. D. Sine, H. Mitsuhashi, and D. A. Kirsch, “Revisiting Burns and Stalker: Formal Structure and New Venture Performance in Emerging Economic Sectors,” Academy of Management Journal 49, no. 1 (2006): 121–32.
40. Mintzberg, The Structuring of Organizations, p. 106. 41. Mintzberg, The Structuring of Organizations, Ch. 17;
R. M. Burton, B. Obel, and G. DeSanctis, Organizational Design: A Step-by-Step Approach, 2nd ed. (Cambridge, UK: Cambridge University Press, 2011), pp. 61–63.
42. Galbraith, Designing Organizations, pp. 23–25; Burton, Obel, and DeSanctis, Organizational Design, pp. 63–65.
43. E. E. Lawler III, Rewarding Excellence: Pay Strategies for the New Economy (San Francisco, CA: Jossey-Bass, 2000), pp. 31–34.
44. K. Linebaugh, D. Searcey, and N. Shirouzu, “Secretive Culture Led Toyota Astray,” The Wall Street Journal, 10 February 2010; Toyota North American Quality Advisory Panel, A Road Forward, (Washington, DC: Toyota North American Quality Advisory Panel, 23 May 2011); F. Meier, “Toyota to Pay $17.35 Million for Recall Delay,” USA Today, 19 December 2012, B2; D. Hechler, “Lost in Translation,” Corporate Counsel, April 2013; “Leadership Shake-up at Toyota Brings Ex-GM Executive Aboard,” The Commercial Appeal (Memphis, TN), 7 March 2013, 2.
45. The evolutionary development of the divisional structure is described in J. R. Galbraith, “The Evolution of Enter- prise Organization Designs,” Journal of Organization Design 1, no. 2 (2012): 1–13.
46. These structures were identified from corporate websites and annual reports. These organizations typically rely on a mixture of other structures, so the charts shown have been adapted for learning purposes.
47. M. Goold and A. Campbell, “Do You Have a Well- Designed Organization?” Harvard Business Review 80(2002): 117–24. Others have added factors such as economies of scale and what resources need to be con- trolled the most. See G. Kesler and A. Kates, Leading Organization Design: How to Make Organization Design Decisions to Drive the Results You Want (San Francisco, CA: Jossey-Bass, 2011), Ch. 3.
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34. Mintzberg, The Structuring of Organizations, Ch. 5. 35. W. Dessein and T. Santos, “Adaptive Organizations,”
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65. J.-Y. Lee, “Matrix Structure No Easy Fit for Local Financial Groups,” Joins, 3 February 2012.
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76. P. R. Lawrence and J. W. Lorsch, Organization and Environment (Homewood, IL: Irwin, 1967); Mintzberg, The Structuring of Organizations, Ch. 15.
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52. A. Deutschman, “The Fabric of Creativity,” Fast Company, December 2004, 54; P. J. Kiger, “Power to the Individ- ual,” Workforce Management, 27 February 2006, 1–7; G. Hamel, The Future of Management (Boston: Harvard Business School Press, 2007), Ch. 5; R. E. Silverman, “Who’s the Boss? There Isn’t One,” The Wall Street Journal, 19 June 2012.
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57. S. M. Davis and P. R. Lawrence, Matrix (Reading, MA: Addison-Wesley, 1977); J. R. Galbraith, Designing Matrix Organizations That Actually Work (San Francisco, CA: Jossey-Bass, 2009).
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10. R. Hastings, Netflix Culture: Freedom and Responsibility (Los Gatos, CA: Netflix, August 2009).
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CHAPTER 14
1. T. Hsieh, Delivering Happiness: A Path to Profits, Passion, and Purpose (New York: Business Plus, 2010); K. McGee, “Education for Life: Companies Offer Different Corpo- rate Culture,” Las Vegas Business Press, 30 July 2012, S22.
2. A. Williams, P. Dobson, and M. Walters, Changing Cul- ture: New Organizational Approaches (London: Institute of Personnel Management, 1989); E. H. Schein, “What Is Culture?” in Reframing Organizational Culture, ed. P. J. Frost, et al. (Newbury Park, CA: Sage, 1991), 243–53.
3. B. M. Meglino and E. C. Ravlin, “Individual Values in Or- ganizations: Concepts, Controversies, and Research,” Jour- nal of Management 24, no. 3 (1998): 351–89; B. R. Agle and C. B. Caldwell, “Understanding Research on Values in Business,” Business and Society 38, no. 3 (1999): 326–87; S. Hitlin and J. A. Pilavin, “Values: Reviving a Dormant Concept,” Annual Review of Sociology 30(2004): 359–93.
4. N. M. Ashkanasy, “The Case for Culture,” in Debating Organization, ed. R. Westwood and S. Clegg (Malden, MA: Blackwell, 2003), 300–10.
5. K. Ladendorf, “For Facebook Workers, It’s Not Just a Job,” Austin American-Statesman, 1 May 2011, E1; “CEO Zuckerberg: Facebook’s 5 Core Values,” CBS News, 17 May 2012.
6. Hsieh, Delivering Happiness; V. Jayne, “Power Plays— Who Wins in the NZ Energy Game?” New Zealand Management, 1 April 2012, 24.
7. B. Kabanoff and J. Daly, “Espoused Values in Organisa- tions,” Australian Journal of Management 27, no. Special issue (2002): 89–104.
8. “Norway Criticizes BP, Smedvig over Safety,” Energy Compass, 3 January 2003; “Norway Criticizes BP,
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26. A. C. T. Smith and B. Stewart, “Organizational Rituals: Features, Functions and Mechanisms,” International Jour- nal of Management Reviews 13(2011): 113–33.
27. “The Ultimate Chairman,” Business Times Singapore, 3 September 2005.
28. Churchill apparently made this statement on October 28, 1943, in the British House of Commons when London, damaged by bombings in World War II, was about to be rebuilt.
29. G. Turner and J. Myerson, New Workspace New Culture: Office Design as a Catalyst for Change (Aldershot, UK: Gower, 1998).
30. A. Clark, “Life in Mars,” The Guardian (London), 3 May 2008; D. A. Kaplan, “Mars Incorporated: A Pretty Sweet Place to Work,” Fortune, 17 January 2013. Also based on a virtual Google street view tour of Mars’ head offices in Maclean, Virginia; Slough, UK; and Bolton, Canada.
31. K. D. Elsbach and B. A. Bechky, “It’s More than a Desk: Working Smarter through Leveraged Office Design,” California Management Review 49, no. 2 (2007): 80–101.
32. M. Burton, “Open Plan, Open Mind,” Director (2005): 68–72; B. Murray, “Agency Profile: Mother London,” Ihaveanidea, 28 January 2007.
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34. J. C. Collins and J. I. Porras, Built to Last: Successful Hab- its of Visionary Companies (London: Century, 1994); Deal and Kennedy, The New Corporate Cultures; R. Barrett, Building a Values-Driven Organization: A Whole System Approach to Cultural Transformation (Burlington, MA: Butterworth-Heinemann, 2006); J. M. Kouzes and B. Z. Posner, The Leadership Challenge, 4th ed. (San Francisco: Jossey-Bass, 2007), Ch. 3.
35. C. Siehl and J. Martin, “Organizational Culture: A Key to Financial Performance?” in Organizational Climate and Culture, ed. B. Schneider (San Francisco, CA: Jossey-Bass, 1990), 241–81; G. G. Gordon and N. DiTomasco, “Pre- dicting Corporate Performance from Organizational Cul- ture,” Journal of Management Studies 29(1992): 783–98; J. P. Kotter and J. L. Heskett, Corporate Culture and Perfor- mance (New York: Free Press, 1992); C. P. M. Wilderom, U. Glunk, and R. Maslowski, “Organizational Culture as a Predictor of Organizational Performance,” in Handbook of Organizational Culture and Climate, ed. N. M. Ashkanasy, C. P. M. Wilderom, and M. F. Peterson (Thousand Oaks, CA: Sage, 2000), 193–210; A. Carmeli and A. Tishler, “The Relationships between Intangible Organizational Elements and Organizational Perfor- mance,” Strategic Management Journal 25(2004): 1257–78; S. Teerikangas and P. Very, “The Culture-Performance Relationship in M&A: From Yes/No to How,” British Journal of Management 17, no. S1 (2006): S31–S48.
36. P. Klinger and S. Smith, “Goyder Demands Service,” West Australian, 4 July 2007, 47; F. Smith, “Coles Staff Have Stopped Checking out, at Last,” Australian Finan- cial Review, 6 March 2012, 58.
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17. J. S. Ott, The Organizational Culture Perspective (Pacific Grove, CA: Brooks/Cole, 1989), Ch. 2; J. S. Pederson and J. S. Sorensen, Organizational Cultures in Theory and Practice (Aldershot, England: Gower, 1989), pp. 27–29; M. O. Jones, Studying Organizational Symbolism: What, How, Why? (Thousand Oaks, CA: Sage, 1996).
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21. T. E. Deal and A. A. Kennedy, Corporate Cultures (Read- ing, MA: Addison-Wesley, 1982), Ch. 5; C. J. Boudens, “The Story of Work: A Narrative Analysis of Workplace Emotion,” Organization Studies 26, no. 9 (2005): 1285–306; S. Denning, The Leader’s Guide to Storytelling (San Francisco: Jossey-Bass, 2005).
22. A. L. Wilkins, “Organizational Stories as Symbols Which Control the Organization,” in Organizational Symbolism, ed. L. R. Pondy et al. (Greenwich, CT: JAI Press, 1984), 81–92; R. Zemke, “Storytelling: Back to a Basic,” Train- ing 27(1990): 44–50; J. C. Meyer, “Tell Me a Story: Eliciting Organizational Values from Narratives,” Communication Quarterly 43(1995): 210–24; W. Swap et al., “Using Mentoring and Storytelling to Transfer Knowledge in the Workplace,” Journal of Management Information Systems 18(2001): 95–114.
23. D. Roth, “My Job at the Container Store,” Fortune (2000): 74–78.
24. R. E. Quinn and N. T. Snyder, “Advance Change The- ory: Culture Change at Whirlpool Corporation,” in The Leader’s Change Handbook, ed. J. A. Conger, G. M. Spreitzer, and E. E. Lawler III (San Francisco: Jossey- Bass, 1999), 162–93.
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49. G. R. Maio and J. M. Olson, “Values as Truisms: Evi- dence and Implications,” Journal of Personality and Social Psychology 74, no. 2 (1998): 294–311; G. R. Maio et al., “Addressing Discrepancies between Values and Behavior: The Motivating Effect of Reasons,” Journal of Experimen- tal Social Psychology 37, no. 2 (2001): 104–17.
50. M. Pascoe, “Worst Is yet to Come for Murdoch,” Sydney Morning Herald, 18 July 2011; “News International and Phone-Hacking,” UK House of Commons: Culture Media and Sport Committee (London: The Stationary Office Limited, 2012).
51. “Antony Jenkins to Staff: Adopt New Values or Leave Barclays,” The Telegraph (London), 17 January 2013. Also, original e-mail to Barclays employees.
52. C. Cook and D. Spitzer, World Class Transactions (London: KPMG, 2001); M. L. Sirower, The Synergy Trap: How Companies Lose the Acquisition Game (New York: The Free Press, 1997); J. P. Daly et al., “The Effects of Initial Differences in Firms’ Espoused Values on Their Postmerger Performance,” Journal of Applied Behavioral Science 40, no. 3 (2004): 323–43; J. Krug, Mergers and Acquisitions: Turmoil in Top Management Teams (Williston, VT: Business Expert Press, 2009).
53. M. L. Marks, “Adding Cultural Fit to Your Diligence Checklist,” Mergers & Acquisitions 34, no. 3 (1999): 14–20; Schein, The Corporate Culture Survival Guide, Ch. 8; M. L. Marks, “Mixed Signals,” Across the Board (2000): 21–26.
54. Teerikangas and Very, “The Culture-Performance Rela- tionship in M&A: From Yes/No to How”; G. K. Stahl and A. Voigt, “Do Cultural Differences Matter in Merg- ers and Acquisitions? A Tentative Model and Examina- tion,” Organization Science 19, no. 1 (2008): 160–76.
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CHAPTER 15
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55. J. B. Cunningham and S. K. James, “Implementing Change in Public Sector Organizations,” Management Decision 47, no. 2 (2009): 330.
56. S. Keller and C. Aiken, The Inconvenient Truth About Change: Why It Isn’t Working and What to Do About It (New York: McKinsey & Co., 2008).
57. A. De Bruyn and G. L. Lilien, “A Multi-Stage Model of Word-of-Mouth Influence through Viral Marketing,” International Journal of Research in Marketing 25, no. 3 (2008): 151–63; J. Y. C. Ho and M. Dempsey, “Viral Marketing: Motivations to Forward Online Content,” Journal of Business Research 63, no. 9–10 (2010): 1000–06; M. Williams and F. Buttle, “The Eight Pillars of WOM Management: Lessons from a Multiple Case Study,” Australasian Marketing Journal (AMJ) 19, no. 2 (2011): 85–92.
58. L. Herrero, Homo Imitans (Beaconsfield Bucks, UK: meetingminds, 2011).
Quarterly, July 2008, 1–7; A. E. Rafferty, N. L. Jimmieson, and A. A. Armenakis, “Change Readiness: A Multilevel Review,” Journal of Management 39, no. 1 (2013): 110–35.
36. J. P. Kotter and D. S. Cohen, The Heart of Change (Boston: Harvard Business School Press, 2002), pp. 83–98; J. Allen et al., “Uncertainty During Organizational Change: Managing Perceptions through Communication,” Journal of Change Management 7, no. 2 (2007): 187–210; T. L. Russ, “Communicating Change: A Review and Critical Analysis of Programmatic and Participatory Implementation Approaches,” Journal of Change Manage- ment 8, no. 3 (2008): 199–211; M. van den Heuvel et al., “Adapting to Change: The Value of Change Information and Meaning-Making,” Journal of Vocational Behavior 83, no. 1 (2013): 11–21.
37. G. Jones, “Chemical Reaction,” Smart Business Pittsburgh, February 2011, 10.
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39. K. T. Dirks, L. L. Cummings, and J. L. Pierce, “Psycho- logical Ownership in Organizations: Conditions under Which Individuals Promote and Resist Change,” Research in Organizational Change and Development 9(1996): 1–23; E. A. Lofquist, “Doomed to Fail: A Case Study of Change Implementation Collapse in the Norwegian Civil Aviation Industry,” Journal of Change Management 11, no. 2 (2011): 223–43; L. K. Lewis and T. L. Russ, “Solic- iting and Using Input During Organizational Change Initiatives: What Are Practitioners Doing,” Management Communication Quarterly 26, no. 2 (2012): 267–94.
40. S. G. Bamberger et al., “Impact of Organisational Change on Mental Health: A Systematic Review,” Occupational and Environmental Medicine 69, no. 8 (2012): 592–98.
41. N. T. Tan, “Maximising Human Resource Potential in the Midst of Organisational Change,” Singapore Manage- ment Review 27, no. 2 (2005): 25–35; A. E. Rafferty and S. L. D. Restubog, “The Impact of Change Process and Context on Change Reactions and Turnover During a Merger,” Journal of Management 36, no. 5 (2010): 1309–38.
42. M. McHugh, “The Stress Factor: Another Item for the Change Management Agenda?,” Journal of Organizational Change Management 10(1997): 345–62; D. Buchanan, T. Claydon, and M. Doyle, “Organisation Development and Change: The Legacy of the Nineties,” Human Resource Management Journal 9(1999): 20–37.
43. K. Dobinson, “Turning around London’s ‘Worst’ Coun- cil,” The Guardian (London), 21 November 2012, 42; “Lambeth Call for Shift in ‘Power Relationship,’” Local Government Chronicle, 12 November 2012; “‘Resistance Lets Our Residents Down’,” Local Government Chronicle, 28 February 2013.
44. T. Wakefield, “No Pain, No Gain,” Canadian Business, January 1993, 50–54; M. Cash, “Standardaero Back on the Sale Block,” Winnipeg Free Press, 14 December 2010.
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EN-77
R. E. Quinn, eds., Positive Organizational Scholarship: Foundation of a New Discipline (San Francisco: Berrett Koehler Publishers, 2003); S. L. Gable and J. Haidt, “What (and Why) Is Positive Psychology?” Review of General Psychology 9, no. 2 (2005): 103–10; M. E. P. Seligman et al., “Positive Psychology Progress: Empirical Validation of Interventions,” American Psychologist 60, no. 5 (2005): 410–21.
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74. R. Fry, “Words Create Worlds,” Executive Excellence, March 2012, 12.
75. D. L. Cooperrider and D. K. Whitney, Appreciative In- quiry: A Positive Revolution in Change (San Francisco: Berrett-Koehler, 2005). Recent writing has extended this list to eight principles. See: D. K. Whitney and A. Trosten-Bloom, The Power of Appreciative Inquiry: A Practical Guide to Positive Change, 2nd ed. (San Fran- cisco: Berrett-Koehler Publishers, 2010).
76. F. J. Barrett and D. L. Cooperrider, “Generative Meta- phor Intervention: A New Approach for Working with Systems Divided by Conflict and Caught in Defensive Perception,” Journal of Applied Behavioral Science 26(1990): 219–39; Whitney and Cooperrider, “The Ap- preciative Inquiry Summit”; Watkins and Mohr, Appre- ciative Inquiry, pp. 15–21.
77. M. Schiller, “Case Study: Avon Mexico,” in Appreciative Inquiry: Change at the Speed of Imagination, ed. J. M. Watkins and B. J. Mohr (San Francisco: Jossey-Bass, 2001), 123–26; P. Babcock, “Seeing a Brighter Future,” HRMagazine 50, no. 9 (2005): 48; D. S. Bright, D. L. Cooperrider, and W. B. Galloway, “Appreciative Inquiry in the Office of Research and Development: Improving the Collaborative Capacity of Organization,” Public Per- formance & Management Review 29, no. 3 (2006): 285; D. Gilmour and A. Radford, “Using OD to Enhance Shareholder Value: Delivering Business Results in BP Castrol Marine,” Organization Development Journal 25, no. 3 (2007): P97–P102; Whitney and Trosten-Bloom, The Power of Appreciative Inquiry.
78. D. Meinert, “Positive Momentum,” HRMagazine 58, no. 6 (2013): 68–74.
79. T. F. Yaeger, P. F. Sorensen, and U. Bengtsson, “Assess- ment of the State of Appreciative Inquiry: Past, Present, and Future,” Research in Organizational Change and Development 15(2004): 297–319; G. R. Bushe and A. F. Kassam, “When Is Appreciative Inquiry Transformational? A Meta-Case Analysis,” Journal of Applied Behavioral Science 41, no. 2 (2005): 161–81.
80. G. R. Bushe, “Five Theories of Change Embedded in Ap- preciative Inquiry” (paper presented at the 18th Annual World Congress of Organization Development, Dublin, Ireland, July 14–18 1998).
81. J. M. Bartunek, J. Balogun, and B. Do, “Considering Planned Change Anew: Stretching Large Group Inter- ventions Strategically, Emotionally, and Meaningfully,” Academy of Management Annals 5, no. 1 (2011): 1–52.
82. M. Weisbord and S. Janoff, Future Search: An Action Guide to Finding Common Ground in Organizations and
59. N. Edwards, Using a Viral Communication Approach for Engaging Pfizer’s Field Workforce in Realising Its Vision, Pfizer (London: 19 May 2008); K. Dyer, “Changing Per- ceptions Virally at Novo Nordisk,” Strategic Communica- tion Management 13, no. 2 (2009): 24–27; Herrero, Homo Imitans.
60. J. Riel, “Building a Design Thinking Organization from Within,” in Design of Business: Why Design Thinking Is the Next Competitive Advantage, ed. R. Martin (Boston: Harvard Business Press, 2009), 166–86.
61. M. Beer, R. A. Eisenstat, and B. Spector, The Critical Path to Corporate Renewal (Boston: Harvard Business School Press, 1990).
62. Beer, Eisenstat, and Spector, The Critical Path to Corporate Renewal Chap. 5; R. E. Walton, “Successful Strategies for Diffusing Work Innovations,” Journal of Contemporary Business (1977): 1–22; R. E. Walton, Innovating to Compete: Lessons for Diffusing and Managing Change in the Workplace (San Francisco: Jossey-Bass, 1987).
63. E. M. Rogers, Diffusion of Innovations, Fourth ed. (New York: The Free Press, 1995).
64. P. Reason and H. Bradbury, Handbook of Action Research (London: Sage, 2001); Coghlan and Brannick, “Kurt Lewin”; C. Huxham and S. Vangen, “Researching Orga- nizational Practice through Action Research: Case Studies and Design Choices,” Organizational Research Methods 6(2003): 383–403.
65. V. J. Marsick and M. A. Gephart, “Action Research: Building the Capacity for Learning and Change,” Human Resource Planning 26(2003): 14–18.
66. L. Dickens and K. Watkins, “Action Research: Rethink- ing Lewin,” Management Learning 30(1999): 127–40; J. Heron and P. Reason, “The Practice of Co-Operative Inquiry: Research ‘with’ Rather than ‘on’ People,” in Handbook of Action Research, ed. P. Reason and H. Bradbury (Thousand Oaks, CA: Sage, 2001), 179–88.
67. D. A. Nadler, “Organizational Frame Bending: Types of Change in the Complex Organization,” in Corporate Transformation: Revitalizing Organizations for a Competi- tive World, ed. R. H. Kilmann, T. J. Covin, and Associates (San Francisco: Jossey-Bass, 1988), 66–83; K. E. Weick and R. E. Quinn, “Organizational Change and Develop- ment,” Annual Review of Psychology 50(1999): 361–86.
68. P. K. Sweeney, “Corporate Compliance without Burden- ing the End User: Change Management Lessons from Ergon Energy,” iQ (2006): 24–26.
69. D. Miller and P. H. Friesen, “Momentum and Revolu- tion in Organizational Adaptation,” Academy of Manage- ment Journal 23, no. 4 (1980): 591–614; D. Miller and M.-J. Chen, “Sources and Consequences of Competitive Inertia: A Study of the U.S. Airline Industry,” Adminis- trative Science Quarterly 39, no. 1 (1994): 1–23.
70. J. Isern and C. Pung, “Driving Radical Change,” McKinsey Quarterly, no. 4 (2007): 24–35.
71. T. M. Egan and C. M. Lancaster, “Comparing Apprecia- tive Inquiry to Action Research: OD Practitioner Per- spectives,” Organization Development Journal 23, no. 2 (2005): 29–49.
72. N. Turner, J. Barling, and A. Zacharatos, “Positive Psy- chology at Work,” in Handbook of Positive Psychology, ed. C. R. Snyder and S. Lopez (Oxford: Oxford University Press, 2002), 715–30; K. Cameron, J. E. Dutton, and
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EN-78
Missing Link in Employee Involvement,” Organization Dynamics 22(1994): 38–54.
86. D. J. Knight, “Strategy in Practice: Making It Happen,” Strategy & Leadership 26(1998): 29–33; R. T. Pascale, “Grassroots Leadership—Royal Dutch/Shell,” Fast Company, no. 14 (1998): 110–20; R. T. Pascale, “Leading from a Different Place,” in The Leader’s Change Hand- book, ed. J. A. Conger, G. M. Spreitzer, and E. E. Lawler III (San Francisco: Jossey-Bass, 1999), 301–20; R. Pas- cale, M. Millemann, and L. Gioja, Surfing on the Edge of Chaos (London: Texere, 2000).
87. T. C. Head and P. F. Sorenson, “Cultural Values and Organizational Development: A Seven-Country Study,” Leadership and Organization Development Journal 14(1993): 3–7; R. J. Marshak, “Lewin Meets Confucius: A Review of the OD Model of Change,” Journal of Applied Behavioral Science 29(1993): 395–415; C.-M. Lau, “A Culture-Based Perspective of Organization Development Implementation,” Research in Organizational Change and Development 9(1996): 49–79; C. M. Lau and H. Y. Ngo, “Organization Development and Firm Performance: A Comparison of Multinational and Local Firms,” Journal of International Business Studies 32, no. 1 (2001): 95–114.
88. M. McKendall, “The Tyranny of Change: Organizational Development Revisited,” Journal of Business Ethics 12(1993): 93–104; C. M. D. Deaner, “A Model of Orga- nization Development Ethics,” Public Administration Quarterly 17(1994): 435–46.
89. G. A. Walter, “Organization Development and Individual Rights,” Journal of Applied Behavioral Science 20(1984): 423–39.
90. The source of this often-cited quotation was not found. It does not appear, even in other variations, in the books that Andrew Carnegie wrote (such as Gospel of Wealth, 1900; Empire of Business, 1902; and Autobiography, 1920). However, Carnegie may have stated these words (or similar ones) elsewhere. He gave many speeches and wrote numerous articles, and his words have been reported by other authors.
Communities (San Francisco: Berrett-Koehler, 2000); R. M. Lent, M. T. McCormick, and D. S. Pearce, “Com- bining Future Search and Open Space to Address Special Situations,” Journal of Applied Behavioral Science 41, no. 1 (2005): 61–69; S. Janoff and M. Weisbord, “Future Search as ‘Real-Time’ Action Research,” Futures 38, no. 6 (2006): 716–22.
83. J. Pratt, “Naturalists Deserve More Credit,” St. John’s Tele- gram, 22 June 2002, B3; C. Chowaniec, R. Gordezky, and J. Grieve, “Supporting the Merger of Two School Boards in Ottawa, Ontario, Canada: The Ottawa- Carleton Community and Public Education to 2015,” in Future Search in School District Change, ed. R. Schweitz, K. Martens, and N. Aronson (Lanham, MD: Scarecrow- Education, 2005), 56–70; P. Deans, K. Martens, and R. Gordezky, “Success and System Readiness: Lester B. Pearson School Board and Its Commitment to Educational Excellence, Montreal, Quebec,” in Future Search in School District Change, ed. R. Schweitz, K. Martens, and N. Aronson (Lanham, MD: Scarecrow- Education, 2005), 192–208; R. Lent, J. Van Patten, and T. Phair, “Creating a World-Class Manufacturer in Record Time,” in The Handbook of Large Group Methods, ed. B. B. Bunker and B. T. Alban (New York: Wiley, 2006), 112–24.
84. For a critique of future search conferences and similar whole-system events, see A. Oels, “Investigating the Emotional Roller-Coaster Ride: A Case Study-Based Assessment of the Future Search Conference Design,” Systems Research and Behavioral Science 19(2002): 347–55; M. F. D. Polanyi, “Communicative Action in Practice: Future Search and the Pursuit of an Open, Critical and Non-Coercive Large-Group Process,” Systems Research and Behavioral Science 19(2002): 357–66; A. De Grassi, “Envisioning Futures of African Agriculture: Representa- tion, Power, and Socially Constituted Time,” Progress in Development Studies 7, no. 2 (2007): 79–98.
85. G. R. Bushe and A. B. Shani, Parallel Learning Structures (Reading, MA: Addison-Wesley, 1991); E. M. Van Aken, D. J. Monetta, and D. S. Sink, “Affinity Groups: The
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I-1
A ABB Group, 385, 386 Accenture, 269 Admiral Group, 97 AirAsia, 288 AirTran Airways, 410 Alcoa Russia, 51 Amazon, 228, 342 American Airlines, 314 American Express, 14, 173, 444 Amtrak, 44 Antal International, 54 Apple, Inc., 5, 7, 144, 164, 187, 188, 191,
192, 431 Atos Origin, 259 Autodesk, 143 AVON Mexico, 444
B B&Q, 133 Ballard Power Systems, 204 Bang & Olufsen, 172 Bank of America, 409 Bank of New Zealand, 436 Barclays, 408 Barrick Gold Corporation, 381, 382 Bayer CropScience, 178 Best Buy, 125 BHP Billiton, 11–12, 165, 426 Bioware, 386 BMW AG, 387, 388–389, 403–404 Boeing, 324, 437 Bombardier, Inc., 329 Borough of Lambeth, 435 BP, 400, 401 Brasilata, 208 British Broadcasting Corporation, 444 British Gas New Energy, 291 Broadcast Australia, 228 Brookstone Construction, 325 Buckman Laboratories International, Inc.,
101, 103 Burger Boat Company, 137 Business Objects, 324
C Calgon Carbon Corporation, 434 California Public Employees’ Retirement System
(CalPERS), 139 Campbell Soup, 165 Canadian Tire, 444 Castrol Marine, 444 Celestica Inc., 51 CenturyLink, 318 Chanel, 204 Chick-fil-A, 48 Chrysler, 266, 343, 376 Cirque du Soleil, 35 Cisco Systems, 21 City of Flagstaff, Arizona, 161 City Telecom, 174 CN Railway, 329
Coca-Cola, 301, 382, 383 Coles, 405, 406 Container Store, 403 Continental Airlines, 428 Converse Shoes, 204 Cornerstone Research, 375 Cummins Inc., 386 Cunard Steamship Lines, 346 Cxtec, 418
D Daimler AG, 387 Dalkia, 388 DaVita Inc., 106, 345 Dell Inc., 349 Deloitte LLC, 21–22 Deloitte Touche Tohmatsu, 138, 291, 296 Delta Airlines, 7 Deutsche Post, 123 DHL Express, 123–124 Disney, 31, 105 Dixon Schwabl, 98 Dreyer Kompetense, 199
E Eastern Idaho Regional Medical Center, 346 eBay, 240, 272 Emerson & Cuming, 445 Environmental Protection Agency (EPA), 42 Ergon Energy, 223, 442 Ernst & Young, 86 ESL Federal Credit Union, 254 Excite, Inc., 192 EYE Lighting International, 173
F Facebook, 222, 253, 254, 260–261, 269, 274,
398, 399, 418 FairPrice, 84 Families and Work Institute, 112 Fiat, 343 Flexigroup, 125 Flextronics, 388 Ford Motor Company, 144, 329, 437, 460 4C Corporate Culture Clash and
Chemistry, 408 Foxconn, 113, 144, 146
G General Electric Company, 271, 317, 384,
426, 427 General Motors, 406, 459 GlaxoSmithKline, 273 Global Container Terminals, 329 GOH Lending, 140 Goldcorp, 430 Goldman Sachs, 403 Goodrich Corporation, 386 Google, Inc., 7, 16, 192, 201, 205, 342, 431 GO Transit, 191 Green Mountain Coffee Roasters, 444
organization INDEX H Hana Financial Group, 387 HCL Technologies, 106 Heidelberg USA, 444, 445 Heineken, USA, 129 Herman Miller, Inc., 412 Herschend Family Entertainment, 84 Hewlett-Packard, 274, 387, 388 HFT Investment Management Co. Ltd., 219, 230 Hilcorp Energy Company, 157–158 Hitachi, 19 Home Depot, 266, 412, 427, 435 Hood Group, 164 Hudson’s Bay Co., 16 Hunter Douglas, 444
I IBM, 10, 21, 55, 86, 112, 192, 228, 239, 265,
273, 383, 387, 388, 404 Iceland Foods Group Limited, 31–32, 34 IDEO, 478 Imation Corp., 166 Infoseek, 192 Infosys, 52, 253–254, 260, 405 Intel, 272, 315 Intercontinental Hotels Group, 70 Internal Revenue Service, 381, 382 International Association of Machinists and
Aerospace Workers, 324 Intuit, 432 Israeli Defense Forces, 79
J JCPenney, 7, 187–188, 191 JetBlue, 93–94, 95 John Lewis, 297 John Shetcliffe Marketing, 297 JP Morgan Chase, 283–284, 288, 291–292, 432
K KBR, 199 KenGen, 375 Keppel Offshore & Marine, 85 KPMG, 268
L Lawrence Public Schools, 445 LeasePlan USA, 98 Lehigh Valley Health Network, 103 LG Group, 425–426, 436–437 LinkedIn, 222, 260 Linstow Management Center, 176 L’Oreal Canada, 311–312, 325
M Macquarie Group, 386 Magna International, 372, 388 Magna Steyr, 387 Malaysia Airlines, 100 Mars Inc., 404
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I-2 Organization Index
Mayo Clinic, 402–403 McDonald’s, 346, 377–378, 382, 383 Menlo Innovations, 229 Meridian Technology Centre, 418 Merrill Lynch, 219, 220, 409 Metropolitan Transit Authority, 291 Microsoft, 143, 192, 344–345, 397, 403 MillerCoors, 409 Mittal Steel USA, 442–443 Molson Coors Brewing Company, 409 Morgan Stanley, 35, 219 Mother, 206, 404 MTN Group, 17
N National Highway Traffic Safety Administration
(NHTSA), 381 NBN Corp., 228 Nestlé, 382, 386, 404 Netflix, 400 News Corporation, 408 Nextech Investment Ltd., 219, 230 Nishith Desai Associates (NDA), 206 Nokia Corp., 431 Nordstrom, 8 Nova Chemicals, 143 Novo Nordisk, 275, 438 Nuclear Corporation of America Inc., 460–461 Nucor Inc., 10, 161, 288, 390, 461–462
O Occupational Safety and Health Administration
(OSHA), 400 Ochsner Health System, 137 Ogilvy & Mather, 427 OhioHealth, 160 Olds Motor Vehicle Company, 459, 460 OMD, 206 1-800-Got-Junk? 274 Optimer Pharmaceuticals, 47 Oracle, 387 Otago Sheetmetal, 298
P Palo Verde Nuclear Generating Station, 343 Paul Sherrer Institut, 160 Pfizer, 438 Philips, 381, 382, 383 Pixar Animation Studios, 5, 105, 272 PortionPac Chemical, 84, 161 PricewaterhouseCoopers LLP, 17–18, 44, 113 Procter & Gamble, 86, 386, 438–439 Provena United Samaritans Medical
Center, 292 PSA Peugeot Citroën, 226, 240 Publix Super Markets, 163
Q Qantas, 314 Quicken Loans, 3–4, 5, 10, 11, 12, 13, 404, 412 Qwest, 318
R Rakuten Inc., 84 Razer, 98 Reckitt Benckiser, 413 Reliance Industries, 12 REO Motor Car Company, 459–460 Research in Motion, 13 Richmond School Board, 141 Rolls Royce Engine Services, 171, 342–343 Roving Coach, 77 Rox Ltd., 142 Royal Canadian Mounted Police, 141 Royal Dutch/Shell, 446 R. W. Armstrong, 70 Ryanair, 75
S SABMiller plc, 409 Sage Software, 296 Samsonite, 377 Samsung Electronics, 205, 425, 426 Sandvik, 376 San Jorge Children’s Hospital, 114–115 SAP, 324 SAS Institute, 13, 115 Semco SA, 207, 343, 357, 384 Serasa Experian, 303 7-Eleven, 377 Shell, 386, 432, 446 Sherwin-Williams, 208 Siemens AG, 268, 387 Skype, 263 SNC Lavalin, 7 Sodexo Motivation Solutions Ltd., 297 Sound Transit, 235 Southwest Airlines, 410 StandardAero, 435 Standard Chartered Bank, 124–125, 142 StarHub, 289 Strangeloop Networks, 413 Strategic Investments, 224 Svenska Handelsbanken AB, 163, 175, 176 System Capital Management, 325
T Tangible Interaction Design, 204 Target Corporation, 187 Telstra, 341–342, 344, 345, 346–347 Tencent, 347 T.G.I. Friday, 349
Thomson Reuters, 294 3M, 287 TNT, 359 Toyota Motor Company, 160, 240, 381 TrustPower, 15, 398, 399 Twitter, 253, 257, 260, 263, 269, 270, 274 Typepad, 260
U UKRD, 345 Umpqua Bank, 430 United Airlines, 314, 428 United States Air Force (USAF), 103, 231 U.S. Army, 351 U.S. Department of Defense, 257 U.S. Department of Transportation, 273 United States Postal Service, 327 University of Delaware, 81 University of South Florida College of
Medicine, 103
V Valve Corporation, 343, 369–370, 372, 373,
378, 384 Van Schouwen Associates, 22 Venice Arsenal, 168 Verizon Communications, 18, 20 Vodafone, 52 Volkswagen de Brasil, 141 Vulcraft Corporation, 461
W Waldorf Astoria Shanghai, 34 Walt Disney Studios, 105 Wawa, 223 Wegmans Food Markets, 106 Wells Fargo, 219 Wesfarmers Ltd., 37, 405, 406, 432 Westfield Group, 332 Whirlpool, 403 Whole Foods Market, 162, 238 Wide Open West, 45, 84 Wikipedia, 273 W. L. Gore & Associates, 207, 343, 384
X Xerox, 321 Xerox PARC, 192
Y Yahoo! 192, 240
Z Zappos, 164, 397–398, 400, 406, 411, 412–413 Zara, 9, 10, 11
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A Abbate, J., 527 Abdoulah, Colleen, 45, 84 Abel, M. H., 505 Abrahamson, E., 532 Abrash, M., 369, 544 Abusah, D., 525 Acar, S., 518 Ackerman, F., 481 Ackman, William, 187 Adams, J. S., 510 Adams, M., 490 Adams, R. B., 482 Adams, Scott, 80 Aditya, R. N., 541, 543 Adler, J. E., 493 Adler, P. S., 480, 532 Adomdza, G. K., 518 Agle, B. A., 506 Agle, B. R., 482, 488, 548 Agor, W. H., 517 Aguilar, L., 479 Aguinis, H., 482, 509 Aguirre, D., 549 Ahmed, A. S., 491 Aiello, J. R., 520 Aiken, C., 554 Aite, A., 493 Aizu, Miho, 269 Ajzen, I., 497 Akerson, Dan, 406 Akgün, A. E., 481 Aksoy, L., 490 Akter, M., 545 Alam, K., 544 Alarcon, G., 503, 504 Alban, B. T., 556 Albarracín, D., 497 Albright, M., 512 Aldrick, P., 514 Alexander, April, 235 Alicke, M. D., 491, 517 Allen, D. G., 551 Allen, J., 554 Allen, K., 505 Allen, Ken, 123 Allen, L. A., 503 Allen, N., 493 Allen, N. J., 485, 521 Allen, R. F., 550 Allen, R. W., 534 Allen, T. J., 529 Allport, G. W., 493, 496 Allred, K. G., 538 Allyn, Daniel, 351 Aloysius, J. A., 518 Altman, D., 483 Altmann, E. M., 493, 516 Álvares, A. C. T., 519 Álvares Teixeira, Antonio Carlos, 208 Alvesson, M., 550 Amabile, T. M., 518 Amason, A. C., 517, 535, 536, 553
Ambady, N., 493, 500 Ambrose, M. L., 510 Ambrosi, Joseph Graham, 250 Amernic, J., 529 Amir, O., 488 Anders, G., 522, 545 Anderson, C., 533 Anderson, Derrick, 435 Anderson, J., 533 Anderson, L., 523 Anderson, M., 483 Anderson, N., 484, 503, 521, 551, 552 Andrew, S., 503 Andrews, M., 510 Andrews, M. C., 488, 534 Andrews, Tracey, 297 Ang, S., 501 Angle, H. L., 534 Anglim, J., 523 Anseel, F., 492 Ante, S. E., 509 Antonakis, J., 500, 543 Appelbaum, S. H., 553 Arbib, M. A., 506 Archibald, D., 520, 532 Arendt, L. A., 498 Argote, L., 480 Argyris, C., 519, 534 Ariely, D., 488, 512, 516 Aritzeta, A., 522 Armenakis, A., 553, 554 Armour, S., 505 Arndt, M., 462, 511, 552 Aronson, E., 489, 523 Aronson, N., 556 Arrow, H., 521 Arthaud-Day, M. L., 488 Ashford, S. J., 509, 543 Ashforth, B. E., 514, 532, 550, 551, 552 Ashkanasy, N. M., 492, 497, 498, 499, 500,
548, 549 Ashmos, D. P., 480 Ashton, M. C., 61, 155 Assael, H., 535 Assayas, M., 521 Åsterbro, T., 518 Atai, M. R., 529 Atchison, C., 512 Athos, A. G., 520 Atuahene-Gima, K., 533 Atwater, L. E., 508, 509 Atzeni, T., 528 Au, A. K. C., 528 Au, K., 501 Aubé, C., 230, 522 Auerbach, D. I., 486 Augusto, M., 518 Auh, S., 502 Avery, G., 496 Avolio, B. J., 491, 492,
504, 544 Axtell, C. M., 496 Axtell, R. E., 529
name INDEX
Aycari, Z., 489 Ayers, S., 503
B Baba, V. V., 541 Babcock, P., 555 Baber, A., 552 Bacharach, S. B., 485 Bachrach, D. G., 485 Back, M. D., 487 Bacon, N., 494 Bader, P., 543 Bagozzi, R. P., 507 Bailey, D. E., 483 Baiocco, Maja, 17–18 Baker, G., 536 Baker, J. A., III, 548 Baker, V., 488 Baker, W. E., 540, 550 Baker-McClearn, D., 486 Bakker, A. B., 505 Baldwin, C., 547 Ballard, Geoffrey, 204 Ballmer, Steve, 143 Balogun, J., 555 Baltazar, R., 523 Baltes, P., 529 Balthazard, P. A., 540, 548 Baltzley, D., 496 Baltzly, D., 515 Bamberger, P., 485, 486 Bamberger, S. G., 554 Bancroft, Ashley, 311 Bandura, A., 138–139, 492, 508 Banick, R., 512 Banister, C., 483 Bansal, P., 480 Barbalas, Michael, 386 Barber, Chris, 297 Barbieri, J. C., 519 Barbuto, J. E., Jr., 536, 540 Bardi, A., 482, 488 Barger, P. B., 502 Bargh, J. A., 493, 494, 498, 508, 515 Barker, B. A., 523 Barki, H., 526, 536 Barley, S. R., 479, 527 Barling, J., 541, 555 Barlow, F. K., 496 Barnard, Chester, 6, 254, 480, 526, 531, 539 Barnes, J. W., 550 Barnes, V. A., 505 Barnett, M. L., 481–482 Barnett, T., 489 Barnett, W. P., 523 Barney, J., 480 Barney, J. B., 482 Barnlund, D. C., 529 Baron, N. S., 529 Bar-On, R., 500 Baron, R. A., 534 Barrett, A. K., 528
I-3
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I-4 Name Index
Boland, M. J., 539 Bolch, M., 462, 531 Bolden, R., 544 Bolino, M. C., 485, 533 Bollen, K., 537, 538 Bolt, C., 486 Bolton, S., 498 Bonanno, G. A., 504 Bond, S. D., 516 Bono, J. E., 492, 509 Boos, M., 528 Bopp, M. I., 514 Borch, C., 533 Bordass, B., 529 Bordia, P., 503, 525 Borghans, L., 545 Borkenau, P., 486 Bornstein, G., 494 Boros, S., 535 Borrill, C. S., 521 Boss, J., 489 Boss, R. W., 534 Bosse, T., 497 Bossidy, L., 517 Bosson, J. K., 492 Bostelaar, R., 481 Boswell, W. R., 510 Botero, I. C., 501 Botti, S., 516 Bouchard, Christian, 311 Bouchard, T., 486 Boucher, H., 491 Boucher, H. C., 520 Bouckenooghe, D., 488 Boudens, C. J., 549 Bougen, P. D., 494 Boulding, K. E., 534 Boulding, W., 518 Bourgeois, L. J., III, 535, 537 Bourgois, Emilie, 54 Bourhis, A., 483 Bouvin, Anders, 176 Bowling, N. A., 485–486, 492, 504, 505 Bowman, K., 500 Boyatzis, R., 499, 529, 543 Boyce, C. J., 488 Boyle, P. J., 535 Bozon, I. J., 553 Bracken, D., 530 Brackett, M. A., 500 Bradbury, H., 555 Bradfield, R., 517 Bradley, B. H., 535 Brady, D., 552 Bragger, J. D., 517 Branch-Smith, C., 494 Brandon, Yvonne, 141 Brandtstadter, J., 515 Brannick, T., 552, 555 Brannon, J., 493 Brantmeier, C., 538 Brass, D. J., 531, 532 Bratslavsky, E., 497 Brechu, M. B., 544 Breene, T., 551 Breeze, J. D., 545
Benson, G. S., 481 Benzing, C. D., 536 Berdahl, J. L., 521 Berend, D., 520 Beresford, D. R., 489 Bergeron, N., 499 Bergman, M. E., 502–503 Bergman, T. J., 536 Berkman, E. T., 498 Berlew, D. E., 540 Berlin, L., 525 Bernerth, J. B., 554 Berridge, K. C., 498, 506, 507, 516, 528 Berry, C. M., 486, 487 Berry, D. S., 490 Berry, M., 509 Berson, Y., 551 Beshears, J., 516 Bettis, R., 547 Betz, E. L., 506 Bexton, W. H., 507 Beyer, J. M., 551 Beyerlein, M. M., 525 Bhattacharyya, S., 528 Bhave, D., 513 Bigler, Nathan, 346 Bigley, G. A., 508 Bijttebier, P., 515 Bingham, L. B., 538 Binkert, J., 119, 509 Bird, Brad, 105 Bird, K. D., 487 Birkenshaw, J., 547 Biron, M., 486 Black, D., 504 Black, L., 540 Black, S. J., 496 Blagg, H., 529 Blake, R. R., 320, 339, 534, 536 Blakely, G., 510 Blanchard, K. H., 354, 542 Blanch-Hartigan, D., 500 Blank, W., 542 Blasi, A., 506 Blau, G., 510 Blazejewski, S., 534 Blickle, G., 534 Bliese, P. D., 507 Bliss, M. A., 532 Blodget, H., 552 Blom, David, 160 Blomgren Bingham, L., 538 Bloom, M., 509, 510 Blossom, D., 394 Blum, T. C., 513 Blumer, Jason, 73 Blyton, P., 494 Bobocel, D. R., 499 Bodenhausen, G. V., 493, 497 Boehnke, K., 488 Bogner, W. C., 480 Bogyo, Terrance J., 450 Bohner, G., 497, 553 Boies, K., 519 Boisnier, A., 549 Boisnier, Alicia, 458
Barrett, D., 530 Barrett, F. J., 444, 555 Barrett, L. F., 497, 509 Barrett, R., 482, 549 Barrick, M. R., 487, 521, 522, 524 Barron, L. A., 511 Barsade, S. G., 506, 518, 528 Bartol, K. M., 511, 514 Bartram, D., 485 Bartunek, J. M., 484, 509, 555 Baruah, J., 526 Bass, B. M., 515, 539, 540, 550 Bassi, L., 480 Bastianutti, L. M., 526 Basuroy, S., 507 Bateman, T. S., 478, 494 Bauer, T. N., 503, 551 Baum, A., 503 Bauman, C. W., 495 Bauman, J., 514 Baumann, C., 511 Baumeister, R. E., 507, 520 Baumeister, R. F., 492, 497, 507, 527 Bavelas, Alex, 465 Baynes, H. G., 487 Bazerman, M. H., 538, 539 Beach, L. R., 515 Beal, D. J., 523 Bear, D., 480 Beatty, C. A., 523, 539 Bebeau, M. J., 489 Bechara, A., 493, 498, 507, 516 Bechky, B. A., 549 Bechtoldt, M. N., 491, 492 Becker, B., 526 Becker, B. E., 481 Becker, F., 530 Becker, G. S., 545 Becker, W. J., 497, 528 Beckerle, C. A., 530 Bedeian, A. G., 501, 510, 534, 544, 545 Bedell, K. E., 518 Bednar, J., 483 Beechler, S., 496 Beehr, T. A., 488, 505 Beemsterboer, W., 486 Beer, J. S., 506 Beer, M., 512, 555 Beersma, B., 320, 339, 520, 530 Behling, O., 517 Beim, Alex, 204 Bélanger, F., 528 Bell, D. W., 498 Bell, S. J., 502 Benady, A., 519 Benbow, C. P., 488 Bendersky, C., 534, 535, 536 Benesh, P., 540 Bengtsson, U., 555 Benjamin, D. J., 493 Benko, C., 483 Bennett, M. M., 505 Bennett, Steve, 432 Bennis, W., 360, 483, 519, 544, 526, 529, 539,
540, 541, 544 Benson, B. S., 526
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Name Index I-5
Carnevale, P. J., 535, 539 Carpenter, M. A., 532 Carpenter, N. C., 487 Carr, A. E., 505 Carrns, A., 495 Carroll, A. B., 482 Carroll, B., 542, 543 Carroll, J. S., 517 Carroll, S. A., 500 Carron, A. V., 523 Carson, K. D., 531 Carson, K. P., 524 Carson, P. P., 531 Carter, E., 529 Carter, Maurice, 171 Cartwright, D., 530 Caruso, D. R., 499, 500, 529 Carver, C. S., 486 Case, J., 511, 512 Casey-Campbell, M., 524 Cash, M., 554 Caspi, A., 486 Cathy, Dan, 48 Cavanagh, M., 530 Cavusgil, S. T., 550 Cawsey, T. F., 553 Caza, A., 532 Cediey, E., 494 Cegarra-Navarro, J. G., 481 Celestica, 388 Cha, S. E., 549 Chabris, C. F., 493 Chadee, D., 494 Chahai, M., 498 Chahkandi, F., 529 Chaiken, S., 493, 497 Challagalla, G., 509 Champagne, M. V., 538 Champoux, J. E., 513 Chan, A. H., 489 Chan, D. K. S., 528 Chan, J. W. K., 522 Chan, L. S., 532 Chan, L. Y., 547 Chandler, A. D., 548 Chang, A., 503 Chang, C.-H., 534 Chang-Schneider, C., 492 Chao, G. T., 551 Chapman, D. S., 551 Charan, R., 517, 551, 552 Charbonnier-Voirin, A., 485 Charles, A. C., 509 Chartrand, T. L., 494, 515, 528 Chatman, J., 401, 548, 549, 550 Chatterjee, A., 532 Chaudhury, N., 486 Chebat, J.-C., 514 Chelius, J., 512 Chemers, M. M., 542 Chen, C.-I. B., 551 Chen, C.-J., 546 Chen, G., 492 Chen, K., 490 Chen, M.-J., 555 Chen, S., 520
Burns, Ursula, 321 Burt, R. S., 532 Burton, M., 519, 549 Burton, Pierre, 147 Burton, R. M., 546, 547 Bushe, G. R., 522, 555, 556 Bussel, R., 519 Butcher, A., 482 Butera, F., 528 Butler, A. B., 508 Butler, P., 508 Buttermore, N. R., 492 Buttle, F., 530, 554 Butz, H. R., 553, 554 Byham, W. C., 508 Byrne, J. C., 481 Byrnes, J., 511 Byrnes, M., 462 Byron, K., 527
C Cabanac, M., 497 Cable, D. M., 488, 491–492, 551 Cacioppo, J., 533 Cai, D. A., 536, 537 Cairns, D. R., 537 Cairns, G., 517 Calabrese, G., 547 Calcraft, Stef, 206 Caldwell, C. B., 488, 506, 548 Caldwell, D. E., 523 Caldwell, D. F., 401, 548 Caldwell, S., 553, 554 Calitri, R., 496 Callanan, G. A., 335, 338, 536 Callery, P., 478 Callinan, M., 485 Callister, R. R., 534 Cameron, A.-F., 528 Cameron, K., 480, 555 Camgoz, S. M., 537 Campbell, A., 546, 547 Campbell, D., 541 Campbell, E. M., 529 Campbell, J. D., 491 Campbell, J. P., 484, 485, 507 Campbell, S. M., 483 Campbell, W. K., 491 Campion, M. A., 501, 509, 512, 513, 521, 522, 545 Camps, J., 481 Cannan, E., 513 Cannon, M. D., 512 Cannon-Brookes, Michael, 383 Cantril, H., 506 Capitelli, L., 488 Caplan, J., 480 Capobianco, S., 537 Capraro, M. M., 487 Capraro, R. M., 487 Carli, L. L., 544 Carlson, D. C., 488 Carlson, J. R., 527, 528 Carmeli, A., 549 Carnegie, Andrew, 447, 556 Carnegie, D., 491
Brender, Y., 506, 507 Breton, Thierry, 259 Brett, J. F., 509 Brett, J. M., 536, 537, 538, 539 Brew, F. P., 537 Brewer, M. B., 492 Brickson, S., 537 Bridwell, L. G., 506 Brief, A. P., 497, 533 Brigham, J. C., 493 Bright, D. S., 555 Bright, J. E. H., 487 Brin, Sergey, 192 Briner, R. B., 484 Brinsfield, C. T., 502 Brockner, J., 517 Brodbeck, F. C., 544 Brody, L., 553 Brodzinski, C., 512 Brook, A. T., 491 Brooks, F. P., 521 Brotheridge, C. M., 499 Brousell, L., 508 Brown, B. R., 538 Brown, C. M., 491 Brown, D. J., 543, 544 Brown, E. G., 554 Brown, F. W., 487 Brown, G. D. A., 488 Brown, K. G., 484 Brown, Mike, 292 Brown, Rachel, 397–398 Brown, S., 519 Brown, S. P., 107, 502, 509 Brown, V. R., 526 Brownell, M., 553 Brownstein, A. L., 516 Brtek, M. D., 512 Bruner, R. F., 517 Brusoni, S., 480 Bryant, A., 335, 531, 536 Bryant, D. U., 544 Bryman, A., 540, 541 Buchanan, D., 554 Buchanan, L., 496, 511, 522, 552 Buck, R., 533 Buckingham, M., 119, 509, 512 Buckley, M. P., 503 Budner, S., 451 Buehner, M. J., 493 Buelens, M., 545 Buerhaus, P. I., 486 Bunker, B. B., 556 Burigo, M., 516 Burke, C., 517 Burke, C. S., 540 Burke, L. A., 487 Burke, M., 484 Burke, R. J., 483, 504 Burkes Erickson, P., 552 Burkhardt, M. E., 531 Burne, K., 530 Burnes, B., 552 Burnham, D. H., 506, 507 Burns, B. D., 493, 516 Burns, T., 546, 547
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I-6 Name Index
Covin, T. J., 555 Cowell, E., 528 Cowiea, H., 504 Coy, P., 536 Craig, R., 529 Crano, W. D., 533 Crant, J. M., 494 Crawford, K. S., 495 Crawshaw, C., 486 Crichton, J., 533 Crisp, C. B., 524 Cronin, M. A., 484 Cronshaw, S. F., 543 Croon, M. A., 366, 543 Cropanzano, R., 497, 498, 503, 509, 510, 528,
534, 538 Crosby, Nick, 178 Crosier, Sean, 71 Cross, K. P., 491 Cross, R., 520, 532, 547 Crossland, C., 532 Crowley, M. C., 505 Croxon, J. P., 522 Crumley, B., 531 Crump, J., 487 Cruthirds, K. W., 505 Cruz, V. M., 490 Culbert, S. A., 512 Cummings, A., 518 Cummings, J. N., 525 Cummings, L. L., 504, 515, 517, 520, 554 Cunard, Samuel, 346 Cunningham, J., 527 Cunningham, J. B., 554 Cunningham, L., 487 Cunningham, W. A., 497 Curseu, P. L., 535 Cyr, L. A., 488
D Daffern, Gillean, 250 Daft, R. L., 264, 513, 528 Dahl, R. A., 530 Daimler AG, 387 Dalal, R. S., 485, 497, 501 Dalbert, C., 488 Dalgleish, T., 498 Dallnera, M., 547 Dalsky, D., 490 Daly, J., 548, 550 Damasio, A. R., 493, 497, 498, 506, 507, 516 D’Amelio, A., 553 Dane, E., 517, 518 Danisman, A., 489 Danna, K., 504 D’Annunzio, L. S., 547 Dardick, H., 488 Darlin, D., 553 Das, T. K., 515 Dasborough, M. T., 500 Dastmalchian, A., 544 Datta, D. K., 503 Davenport, T. H., 546 Davidovitz, R., 543 Davidson, Diane, 384
Cloke, K., 519 Cloninger, C. R., 61, 155 Cobb, A. T., 533, 535, 537 Cody, T., 550 Coelho, F., 518 Coetzer, G. H., 522 Coffman, C., 119 Coghlan, D., 552, 555 Cohen, D., 490 Cohen, D. J., 484 Cohen, D. S., 554 Cohen, George, 346 Cohen, S., 520, 524, 527 Cohen-Charash, Y., 510 Colbert, A. E., 509, 543 Cole, M. S., 500, 554 Coleman, D. F., 499 Coleman, P. T., 535 Collee, John, 206 Collins, C. J., 506 Collins, D., 517, 519 Collins, J. C., 482, 549 Collinson, D. L., 498 Collison, R., 516 Combs, J., 481 Combs, J. G., 532 Comer, L. B., 529 Conan Doyle, S. A., 493 Condorcet, Marquis de, 209 Coney, J., 514 Confucius, 5 Conger, J. A., 479, 539, 540, 543, 544, 549,
554, 556 Conlon, D. E., 537, 538 Connell, R., 487 Connellan, T. K., 136, 508 Connelly, B. S., 488 Conway, N., 512 Cook, C., 550 Cook, J., 544, 546 Cooke, R. A., 548 Coombs, T., 508 Coomer, Greg, 369, 378 Coon, H. M., 53, 489, 490 Cooper, C. L., 484, 509, 510, 521, 543 Cooper, D., 490 Cooper, H., 487 Cooper, J., 492, 498 Cooper, W. H., 485, 495, 501, 526 Cooperrider, D. L., 443, 444, 555 Cooper-Thomas, H. D., 503, 551, 552 Copper, C., 514, 523 Corbin, J., 478 Cordery, J. L., 513, 524, 525, 546 Corkill, E., 483 Cornell, W., 486 Corning, P. A., 506 Cory, S. N., 494 Coser, L. A., 535 Cosmides, L., 493 Costa, P. T., 486, 487, 509 Costello, T. W., 495 Côté, S., 499 Courtright, S. H., 524 Covey, S. R., 539 Covey, Stephen, 330
Chen, Y.-J., 511 Chen, Z.-J., 522 Chen, Z. X., 502 Chenevert, D., 537 Cheng, T. C. E., 502 Chermack, T. J., 493, 517 Cherniss, C., 101, 499, 500, 544 Cherrington, David J., 470, 471 Cherry, S., 394 Chesbrough, H., 547 Cheung, F., 499 Cheung, H., 489 Cheyne, J. A., 514 Chi, N.-W., 499 Chiaburu, D. S., 487 Chiang, H.-H., 503 Chidambaram, L. L., 521 Child, P. N., 553 Childs, M., 530 Chirkov, V. I., 513 Chisholm, R. F., 532 Chmiel, N., 504 Chng, G., 531 Cho, B., 535 Cho, Jeewon, 458 Cho, J.-H., 552 Choi, D. W., 539 Choi, I., 495 Choi, J., 516 Choi, K., 535 Choi, M., 553 Choi, Y. H., 526 Chow, W. S., 532 Chowaniec, C., 556 Choy, W. K. W., 490 Chreim, S., 553 Christensen, C. M., 484 Christian, J., 535–536 Christiansen, N. D., 487, 512 Christie, P. M. J., 547 Christie, R., 534 Christman, S. D., 516, 538 Chung-Yan, G. A., 537 Churchill, G. A. J., 484 Churchill, Winston, 404, 549 Chynoweth, C., 533 Cialdini, R. B., 531, 533 Ciampa, D., 547 Cianciolo, A. T., 543 Cinite, I., 553 Ciriacks, T., 538 Cirillo, J., 507 Clancy, A. L., 509 Clancy, Ann L., 119 Clark, A., 549 Clark, E., 512 Clark, K., 547 Clark, K. D., 525 Clark, M. A., 486 Clarke, N., 505 Claydon, T., 554 Clegg, C. W., 546 Clegg, S., 479, 548 Clegg, S. R., 530, 531, 541 Clifford, S., 515 Clifton, D. O., 512
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Name Index I-7
Doucet, O., 537 Dougall, A. L., 503 Dougherty, C., 335 Douglas, C., 547 Douglas, J.-V., 539 Doukas, J. A., 491 Dowling, G. R., 531 Dowling, W. F., 513 Doyle, K. O., 511 Doyle, M., 554 Drach-Zahavy, A., 533 Drago, R., 504 Dreezens, E., 488 Drenth, P. J. D., 548 Drickhamer, D., 545 Driscoll, J. E., 514 Drollinger, T., 529 Drory, A., 503 Drucker, P., 142, 347–348, 484, 509, 515, 541 Druckman, D., 539 Duan, C., 496 Duarte, M., 535 Dubé, L., 525 Ducheneaut, N. B., 527 Duckworth, H., 525 Duellman, S., 491 Duerden Comeau, T., 536 Duff, A., 484 Duggan, D., 480 Duncan, R. M., 514 Dunckel, H., 524 Dunford, R., 546 Dunham, W., 486 Dunlap, S., 532 Dunlop, P. D., 485 Dunne, T. C., 538 Dunnette, M., 500 Dunnette, M. D., 339, 484, 536 Dunning, D., 491 DuPont, Karen, 64 Durbin, D.-A., 550 Durham, C. C., 498 Durrheim, K., 537 Dutton, J. E., 514, 555 Dutton, J. M., 536 Duxbury, L., 524 Duxbury, L. E., 553 Dvir, T., 551 Dwyer, D., 503 Dwyer, J., 547 Dye, K., 506 Dyer, B., 536, 537 Dyer, K., 530, 555 Dyer, W. G., 523 Dzieweczynski, J. L., 487
E Eaglesham, J., 530 Eagly, A. H., 497, 544 Earley, C. P., 490, 536 Eastman, K. K., 541 Eber, H. W., 61, 155 Eby, L. T., 492, 504, 512 Eccles, J., 495 Eckel, N. L., 517
DeRue, D. S., 541, 543 Desai, N., 519 DeSanctis, G., 546, 547 Desautels, G., 489 Descartes, René, 188–189 Desportes, Marc-Henri, 259 Dess, G. G., 479 Dessein, W., 546 Deszca, G., 553 Detar, J., 535 Detillion, C. E., 520 Deutsch, M., 535 Deutschman, A., 547 Devanna, M. A., 539 Deveau, D., 534 Devine, D. J., 523 DeVore, C. J., 537 DeVries, A. C., 520 De Vries, R. E., 540 Dewe, P., 512 Dewey, J., 535 Dewey, John, 66, 313 Dewhurst, M., 546 De Wit, F. R. C., 535, 536 De Wolff, C. J., 548 Dholakia, U. M., 507 Dick, B., 479 Dickel, N., 497, 553 Dickens, L., 555 Dickson, M. W., 507, 520, 551 Diefendorff, J. M., 499 Diehl, M., 525 Diener, E., 497 Dierdorff, E. C., 511 Dietmeyer, B. J., 538 DiGiovanni, M., 526 Digman, J. M., 486 Dilchert, S., 486 DiLiello, T. C., 518 DiMicco, Daniel, 390, 462 Dimnik, T., 494 Dimon, Jamie, 432 Dinh, J. E., 543 Dionne, S. D., 542 Dirks, K. T., 503, 520, 524, 554 Dirsmith, M., 519 DiTomasco, N., 549 Dixon, J., 537 Do, B., 555 Dobbin, F., 495 Dobinson, K., 554 Doctoroff, S., 538 Dodd, N. G., 513 Doehrman, M., 549 Dolan, R. J., 498 Dollinger, S. J., 518 Donahue, L. M., 523 Donaldson, L., 547 Donker, H., 489 Donsky, M., 462 Dooley, K. J., 519 Doosje, B., 527 Dorfman, P., 539, 544, 551 Dormann, C., 499 Dorow, W., 534 Dose, J. J., 523
Davidson, J. E., 518 Davidson, N., 504 Davidson, O. B., 505 Davidson, R. J., 516 Davies, G., 535 Davies, James, 123 Davies, S., 498 Davis, A., 495 Davis, G. M.-T., 511 Davis, K., 530 Davis, M., 537 Davis, R., 553 Davis, Ray, 430 Davis, R. C., 513 Davis, S. M., 547 Davis, W. L., 530 Davison, B., 545 Dawes, P. L., 531 Dawkins, R., 507 Day, A. L., 500 Day, D. V., 508, 543, 544 Day, T. A., 503 Deal, J., 483 Deal, T. E., 549, 550 Deaner, C. M. D., 556 Deans, P., 556 Dearth, Randall, 434 Debats, D. L., 487 De Blasio, P., 529 De Bruyn, A., 530, 554 DeCelles, K. A., 489 Decety, J., 489 DeChurch, L. A., 522, 523, 537 De Cuyper, Dirk, 34 De Dreu, C. K. W., 320, 339, 483,
522, 523, 534, 535, 536, 537, 538
DeFelice, A., 533 DeFrank, R. S., 503 De Geus, A., 480 De Grassi, A., 556 DeGross, R., 552 De Janasz, S. C., 532 De Jong, G., 519 De Jonge, J., 515 De Jonge, S., 528 Delaney, K. J., 515 DeLano, John, 125 Delbecq, A. L., 515, 526, 545 Delbridge, R., 530 Dell’Orto, G., 511 DelVecchio, W. F., 486 DeMatteo, J. S., 512 De Mestral, Georges, 203 Dempsey, M., 530, 554 Denby, J., 545 DeNeve, K. M., 487 Den Hartog, D. N., 544 DeNisi, A. S., 509, 510 Denning, S., 540, 549 Dennis, A. R., 524, 526, 528 Dent, E. B., 553 Depledge, G., 517 De Pree, M., 412, 551 DeRosa, D. M., 526 D’Errico, R., 536
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I-8 Name Index
Finegan, J. E., 502 Fink, A., 526 Fink, E. L., 536, 537 Fink, J. J., 495 Finkelstein, S., 498, 515, 553 Finkenauer, C., 497 Finlay, K. A., 496 Fiori, M., 500 Fischbacher, U., 523 Fischer, S., 482 Fisher, C. D., 500, 501 Fisher, J., 505 Fisher, L. M., 543 Fisher, R. J., 523 Fiske, S. T., 494, 497 Fitzpatrick, D., 530, 550 Fitzpatrick, S., 510 Fizel, J., 510 Flander, S., 505 Fleishman, E. A., 541 Fleming, M. A., 491 Fleming, P., 484 Fletcher, C., 506 Fletcher, M., 484 Flynn, F. J., 495 Foley, J. R., 519 Folkman, S., 504 Follett, Mary Parker, 6, 313, 319, 535, 536 Fontaine, J., 499 Ford, Henry, 460 Ford, J. D., 553 Ford, L. W., 553 Ford, R. C., 547 Forgas, J. P., 516 Foroni, F., 494 Forrestal, L., 481 Forrester, Karen, 349 Forrester, R., 513 Forret, M. L., 532 Forsyth, D. R., 543 Foster, E. K., 530 Fox, A., 505 Fox, C. R., 521 Fox, K. E., 499 Fox, M., 503 Foy, R., 526 Fragale, A. R., 528 Francesco, A. M., 502 Francis, M., 553 Franco, M., 495 Frank, R. H., 507 Frankel, S., 526 Franklin, S., 540 Franks, D. D., 496 Frauenheim, E., 481, 513 Frayne, C. A., 508 Fredenhall, L. D., 520, 524 Freed, B., 522 Freeman, R. E., 482 Freiburger, N., 479 Freifeld, L., 479 French, John, 286 French, J. R. P., 530, 531 Frey, B. S., 507, 511 Fried, Y., 484, 513 Friedman, A. L., 481, 494
Euwema, C., 538 Euwema, M. C., 537 Evans, G., 530 Evans, M. G., 542 Evans, R., 498 Evanschitzky, H., 502 Evers, A., 320, 339 Ezzamel, M., 510
F Fabish, L., 489 Fahr, R., 486 Fairhurst, G. T., 542 Falbe, C. M., 531, 534 Fallon, M., 539 Fallows, D., 529 Fan, Y., 532 Fanelli, A., 540 Fanning, M. M., 547 Faragher, J., 540 Farberov, S., 535 Farh, C. I. C., 535 Farh, J.-L., 522 Farh, J. L., 535 Farmer, S. M., 534 Farrall, Frank, 138 Farzaneh, P., 529 Fassina, N. E., 527, 551 Faust, K., 532 Faxander, Olof, 376 Fayol, Henri, 312, 374, 512, 545 Fedor, D. B., 553 Fehr, E., 523 Fehr, E. E., 506 Feinberg, J. M., 520 Feist, G. J., 518 Feldman, D. C., 485, 491, 499, 501, 504,
523, 552 Feldman, S., 552 Felfe, J., 543 Fellous, J.-M., 506 Fells, R., 538 Felton, S., 494 Fenton, N. E., 548 Fenton, T., 530 Fenton-O’Creevy, M., 497, 519, 547 Ferenc, J., 511 Ferguson, M. J., 493, 498, 508 Ferguson, N., 510 Ferguson, R. B., 530 Fernandes, Tony, 288 Fernandez, J. A., 479 Ferrin, D. L., 524 Ferris, G. R., 533, 534 Festinger, L., 498 Fetters, M. D., 529 Fiedler, F. E., 355, 542 Fiedler, M., 481 Field, R. H. G., 495, 515 Field, Richard, 249, 250 Fikany, John, 344–345 Filipczak, B., 482 Finch, A., 493 Fine, L. M., 462 Finegan, J., 514
Eden, C., 481 Eden, D., 492, 495 Edge, S., 496 Edmiston, J., 515 Edmondson, A. C., 521 Edmunds, A., 529 Edwards, J. R., 488, 502, 512, 551 Edwards, M. R., 492 Edwards, N., 555 Eerland, A., 493 Egan, T. M., 555 Egelhoff, W. G., 547 Eggins, R. A., 492 Egleston, D. O., 523, 524 Egri, C. P., 541 Ehrhart, K. H., 516 Ehrhart, M. G., 551 Einstein, Albert, 24, 190 Eisenberg, J., 497 Eisenhardt, K. M., 535, 537 Eisenstat, R. A., 555 Eisler, R., 505 Ekman, P., 498, 528 Elangovan, A. R., 537, 538 Elfenbein, H. A., 498, 500 Elfering, A., 551 Ellemers, N., 523, 527 Ellis, R., 523 Ellis, R. J., 544 Ellison, N. B., 532 Elloy, D. F., 542 Elmer-DeWitt, P., 504 Elop, Stephen, 431 Elsbach, K. D., 549 Elving, W. J. L., 526 Ely, R. J., 519 Emans, B. J. M., 536 Emden, Z., 540, 550 Emerson, Bill, 3, 404, 412 Emerson, R. M., 530 Emery, C. R., 520, 524 Enge, R. S., 523 Engelhardt, Henry, 97 Engel Small, E., 539 Engen, J., 505 Engen, J. R., 521 Eno, C. A., 487 Ensari, A., 535–536 Ensari, N., 543 Ensel, W. M., 505 Ensign, P. C., 547 Epictetus, 271 Epitropaki, O., 542 Epley, N., 516, 527 Erb, H.-P., 492 Erdem, I., 544 Erez, A., 485 Erez, M., 521 Ergeneli, A., 537 Erickson, B., 532 Erickson, T. J., 521 Eschleman, K. J., 492, 504 Espinoza, J., 533 Esses, V. M., 498 Estabrooks, C. A., 548 Estabrooks, P. A., 523
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Name Index I-9
Goldsmith, J., 519 Goldsmith, M., 512 Goldstein, N. J., 531, 533 Goleman, D., 101, 499, 500, 529, 543, 544 Gomez, R. J., 501 Gomez-Mejia, L. R., 511 Goncalo, J. A., 518 Goodchild, S., 486 Goodnight, Jim, 13 Goodstein, L. D., 553, 554 Goodwin, P., 517 Goold, M., 546, 547 Gordezky, R., 556 Gordon, G. G., 549 Gordon, L. A., 529 Gordon, S., 509 Gordon, W., 500 Gosling, J., 544 Gosselin, E., 486 Goto, S. G., 495 Gottfredson, R. K., 509 Gough, H. C., 61, 155, 217 Gould, T., 545 Gouldner, A. W., 531 Gould-Williams, J. S., 484 Govindarajan, V., 462, 496 Goyder, Richard, 37, 405, 406, 432, 553 Graeff, C. L., 542 Graen, G. B., 500 Graham, A., 489 Graham, D., 488 Graham, J., 506 Grandey, A. A., 499, 502 Granka, L., 527 Granovetter, M. S., 532 Grant, A. M., 513, 521 Grant, D., 542 Gratton, L., 519, 521 Green, D. P., 495 Green, I., 484 Green, S. G., 542 Green, W., 495 Greenberg, J., 484, 509, 510 Greenblatt, E. D. Y., 483 Greenleaf, R. K., 541 Greenlees, I. A., 508 Greenwald, A. G., 496 Greenwald, J., 545 Greenwood, R., 545 Greer, L. L., 535, 536 Gregg, A., 491, 492 Gregory, K., 493 Greguras, G. J., 501 Greiner, L. E., 479 Greitemeyer, T., 535 Grieve, J., 556 Griffin, D., 516 Griffin, M. A., 484, 485 Griffin, R. W., 504, 513 Griffiths, K., 528 Grimes, A., 515 Griswold, M., 483 Griswold, W., 550 Grodal, S., 527 Gröndahl, M.-P., 521 Gronn, P., 519
Gebauer, J., 491 Geis, F., 534 Geisler, F. C. M., 487 Geister, S., 521, 524, 527, 548 Gellatly, I. R., 501, 502 Geller, E. S., 514 Gemmell, J. M., 538 Gendreau, Kyle, 377 Gentile, B., 491 George, B., 491, 496, 543, 544 George, J., 543 George, J. M., 498, 501, 516 Gephart, M. A., 555 Gerber, E. M., 526 Gerhardt, M. W., 487 Gerhart, B., 479, 511, 512 Geringer, J. M., 508 Gerpott, T. J., 502 Gerritsen, N., 486 Gerwin, D., 548 Gettler, L., 489 Ghosh, D., 518 Gibbs, T., 532 Giberson, T. R., 551 Gibson, B., 507 Gibson, C., 522 Gibson, C. B., 479, 480, 490 Gibson, D. E., 506 Gibson, E., 528 Gibson, F. Y., 545 Gilbert, Dan, 3 Gilbert, D. T., 494, 495, 497 Gilbert, K., 511 Gilbey, A., 493 Gill, A. J., 527 Gill, H., 502 Gill, R., 539 Gillespie, N., 524 Gillespie, T. L., 538 Gilmour, D., 555 Gilovich, T., 516 Gilson, L. L., 513, 514, 525 Giluk, T. L., 484 Gino, F., 492 Gioja, L., 556 Gittell, J. H., 526, 545 Giusti, A. C., 508 Glader, P., 548 Gladman, K., 494 Gladwell, M., 487, 493 Glasbergen, Randy, 413 Glaser, B. G., 478 Glasper, E. R., 520 Glavas, A., 482 Glazer, E., 515 Glew, D. J., 498 Glunk, U., 549 Glynn, S. J., 514 Goebel, James, 229 Goff, Ted, 266, 301 Goldberg, L. R., 61, 155 Goldberg, S. G., 553 Golden, B. R., 532 Golden, J., 507 Golden, L., 504 Goldsmith, H. H., 516
Friedman, H. S., 487 Friedman, Milton, 16, 482 Friedman, R. A., 536–537 Friesen, P. H., 555 Frith, D., 550 Fritz, C., 505 Frost, Harriet, 206 Frost, P. J., 548, 550 Fry, P. S., 487 Fry, R., 555 Fu, P. P., 534 Fujio, M., 529 Fulk, J., 528 Fullagar, C. J., 523, 524 Fulmer, I. S., 479, 512, 522 Funder, D. C., 485, 486 Fung, A., 504 Furnham, A., 487, 510, 511, 549 Furukawa, M. F., 511 Fussell, S. R., 527
G Gable, S. L., 506, 555 Gadient, Donna, 70 Gaertner, L., 490, 492, 507 Gagné, M., 504, 513 Gailliot, M. T., 527 Gaines, J. F., 486 Gaines, S. O., 494 Galbraith, J., 371 Galbraith, J. K., 428, 553 Galbraith, J. R., 545, 546, 547, 548 Galimba, M., 514 Galinsky, A. D., 498, 518, 530, 533 Galinsky, E., 504 Gallagher, J., 479 Gallagher, M., 503 Galloway, W. B., 555 Gallupe, R. B., 526 Galpin, M., 505 Galvin, B. M., 541 Gammage, K. L., 523 Ganco, M., 480 Gander, Mary, 278 Ganesan, S., 509 Ganguly, D., 547 Ganster, D., 503 Ganster, D. C., 499, 513 Ganzach, Y., 517, 552 Gao, J. H., 532 Garcea, N., 505 Garcia, J., 491 Garda, G., 547 Gardner, D., 511 Gardner, H., 520 Gardner, J., 492 Gardner, J. W., 343, 539, 540 Gardner, L., 497 Gardner, W. L., 496, 543, 547 Garland, Judy, 544 Garmhausen, S., 520 Garvin, D. A., 481 Gatenby, M., 484 Gaudes, Alexandra, 63 Gawronski, B., 494, 495, 497
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I-10 Name Index
Hassard, J., 546 Hassell, Jim, 228 Hastings, R., 548 Hattrup, K., 492 Hatzigeorgiadis, A., 514 Hauben, M., 527 Hauben, R., 527 Haukelid, K., 548 Hausdorf, P. A., 488 Hausknecht, J. P., 481 Hautaluoma, J. E., 523 Hawksworth, VInce, 15, 398 Hawranek, D., 335 Hayashi, A. M., 517 Hayday, S., 505 Hayward, M. L. A., 543 Head, T. C., 556 Healy, P. J., 491 Heath, C., 484, 491, 519 Heath, D., 519 Hechler, D., 546 Hecht, T. D., 521 Hedlund, J., 543 Heffner, T. S., 503 Heilbrun, A. B., Jr., 217 Heilman, M. E., 544 Heinemann, P., 531 Heinsman, H., 485 Helfrich, C., 548 Hemsley, S., 519 Hendry, D., 509 Hennig-Thurau, T., 499 Henning, R. A., 514 Henry, P. J., 496 Henshaw, J. M., 508 Herman, S., 541 Hermida, R., 485 Hermkens, K., 260 Herold, D. M., 553, 554 Heron, J., 555 Heron, W., 507 Herrero, L., 554 Hersey, P., 354, 542 Hershcovis, M. S., 503 Hertel, G., 521, 524, 525, 527, 548 Herzberg, F., 169, 513 Heskett, J. I., 107, 502 Heskett, J. L., 549, 550 Heslin, P. A., 509, 526 Hettema, J., 486 Hewlin, P. F., 550 Hewstone, M., 494, 536 Heymann, J., 505 Heywood, S., 532 Hiam, A., 519 Hibbard, J. D., 501 Hickerson, K., 539–540 Hickman, J. S., 514 Hickson, D. J., 531 Hideg, I., 499 Higgins, C., 553 Higgins, C. A., 533 Higgins, E. T., 491, 517, 527 Higgins, J. M., 551 Higginson, T. W., 529 Hilbig, B. E., 497
Hall, J., 496 Hall, R., 498 Hall, R. H., 480 Hall, R. J., 542, 543 Hall, W. A., 478 Hallahan, K., 479 Halliwell, J., 484 Halpin, S. M., 543 Hamaberg, Bob, 435 Hambrick, D. C., 509, 532 Hamel, G., 511, 547 Hamilton, K. L., 537 Hamilton, R. A., 514 Hammarström, O., 512 Hammer, Allen L., 43 Hammer, B. A., 507 Hammer, W. C., 512 Hammons, Eric, 231 Hampden-Turner, C., 499 Han, T.-S., 503 Hancock, J. I., 486 Haner, U.-E., 518 Hanlon, D., 535 Hanlon, G., 484 Hanna, R., 515 Hannah, D. R., 551 Hannah, S. T., 491, 492 Hannay, J. E., 522 Hansen, F., 497 Hansen, H., 540 Hansen, M. T., 526 Hanson, J. R., 532 Hantula, D. A., 526 Hara, N., 527 Hardin, C. D., 496 Hardy, C., 531, 534, 541 Hardy, J., 514 Hare, A. P., 522 Hargadon, A., 478, 519, 526 Harley, B., 481 Harmon-Jones, E., 516 Harpaz, I., 504, 551 Harper, C., 530 Harper, J., 489 Harrè, N., 491 Harrington, S., 505 Harrington, S. D., 531 Harris, J. G., 546 Harris, L. C., 549 Harris, P., 529 Harris, S. G., 550, 553, 554 Harrison, D. A., 482, 489, 500, 501 Harrison, J. S., 482 Harrison, M. M., 543 Hart, C. M., 520 Hart, S., 482 Hårtel, C. E., 522 Hartel, C. E. J., 497, 498, 499 Hartman, N. S., 488 Hartwick, J., 536 Harvey, Cheryl, 394 Harvey, J., 485 Harwood, G. G., 525 Hasegawa, T., 529 Hashimoto, K., 533 Haslam, S. A., 483, 492, 493, 527
Gronvold, Frode, 176 Groot, J., 528 Gross, Jeff, 140 Grossetti, M., 532 Grossman, S., 535 Grossmann, T., 497 Groth, M., 499 Grove, A., 535 Grove, Andy, 315 Grow, B., 552 Groysberg, B., 507 Grubb, W. L., 488 Gruenfeld, D., 544 Gruenfeld, D. H., 533 Grund, C., 509 Gruys, M. L., 485–486 Guadagno, R. E., 487 Guadalupe, M., 545 Guastello, S. J., 522 Guay, R. P., 488, 506 Gubler, T., 512 Gudykunst, W. B., 529 Guenther, C. L., 491, 517 Guenzi, P., 502 Guest, D., 512 Guest, R. H., 513 Guetzkow, H., 535 Guillén, M. F., 482 Guinn, J. S., 491 Guinote, A., 530 Gulati, R., 479, 531 Gulati, R. R., 545 Gully, S. M., 492, 523 Gumbel, P., 494 Gunia, B. C., 518 Gunter, B., 549 Gupta, A. K., 462, 496 Gupta, N., 511 Gurjar, Nandita, 253 Gustafson, D. H., 526 Guthrie, J., 480 Guzzo, R. A., 520, 521 Gyr, J., 535
H Haas, C., 537 Haas, H., 522 Haase, H., 495 Hackett, R. D., 485 Hacki, R., 547 Hackman, J., 507 Hackman, J. D., 531 Hackman, J. R., 170, 183, 513, 521, 552 Haddock, G., 498 Hadley, L., 510 Haenlein, M., 527 Hagel, J., III, 547 Hagey, R., 510 Haid, M., 552 Haidt, J., 506, 555 Haka, S., 529 Halbesleben, J. R. B., 503 Halevy, N., 494 Hall, A., 278 Hall, D. T., 506
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Name Index I-11
Ivry, B., 531 Iyengar, S. S., 506, 516
J Jackson, C. L., 490 Jackson, M., 496 Jackson, T. W., 529 Jacob, N., 490 Jacob, S., 489 Jacobs, R., 544 Jaeger, G. J., 518 Jago, A. G., 213, 519, 520, 525 James, C. R., 462 James, M. O., 525 James, S. K., 554 James, T. A., 518 Jamrog, J., 480 Jang, K. L., 486 Janis, I. L., 515 Janoff, S., 555, 556 Janoff-Bulman, R., 494 Janssen, O., 520 Jarcho, J. M., 498 Jaros, S., 553 Jarvenpaa, S. L., 524 Jasper, J. D., 516, 538 Jassawalla, A., 521 Javidan, M., 539, 544, 551 Jaw, B.-S., 479 Jayne, V., 482, 548 Jeffrey, S. A., 518 Jehn, K. A., 523, 534, 535, 536 Jenkins, Antony, 408 Jenkins, K., 510 Jensen, M. A. C., 522 Jensen, O., 546 Jesiuno, J. C., 544 Jetten, J., 493, 536 Jex, S., 486 Jex, S. M., 513 Jia, S., 510 Jiang, F., 491 Jiménez-Jiménez, D., 481 Jimmieson, N. L., 523, 554 Jing, Runtian, 455 Jinkerson, D. L., 515 Jobs, Steve, 5 Johannesen-Schmidt, M. C., 544 Johannessen, J.-A., 480 Johanson, J.-E., 545 John, O. P., 486 Johne, M., 482, 552 Johns, G., 485, 486 Johns, T. L., 483 Johnson, B. T., 497 Johnson, C., 525 Johnson, D., 530 Johnson, D. E., 485 Johnson, D. W., 250, 536 Johnson, E. C., 502, 551 Johnson, F. P., 250 Johnson, J. A., 61, 155 Johnson, M. D., 531 Johnson, M. H., 505 Johnson, R. E., 491, 492
Howard, A., 515 Howe, N., 482 Howell, D., 552 Howell, J. M., 519, 539 Howes, D., 552 Hrycaiko, D. W., 514 Hsieh, T., 548 Hsieh, Tony, 397, 411, 412 Hsieh, Y.-M., 545 Hsu, L.-C., 481 Hu, C., 551 Huang, J.-W., 546 Huang, Y.-M., 502 Huber, G., 480, 481 Huber, V. L., 508 Hubert, M., 496 Hugenberg, K., 493–494 Hull, L., 534 Humphrey, R. H., 500 Humphries, S., 532 Hung, Y.-T. C., 524 Hunger, J. D., 537 Hunt, J. C., 541 Hunt, J. G., 540, 541–542 Hunter, L. W., 503 Hunter, S. T., 518 Huo, Y. J., 531 Hurd, Mark, 387 Hurst, C., 492 Huselid, M. A., 481 Huszczo, G. E., 523 Hutchinson, J., 539 Hutton, R., 335 Huxham, C., 555 Huy, Q. N., 546 Huysman, M., 481 Hyde, M., 538 Hyman, J., 481 Hymowitz, C., 496 Hyten, C., 524
I Igbaria, M., 483 Iksil, Bruno, 283–284, 288 Ilgen, D. R., 485, 522, 523 Ilies, R., 487, 541, 542, 543 Im, C., 492 Imhoff, R., 492 Immen, W., 482, 533 Indvik, J., 542 Inglis, S., 548 Ingram, Harry, 82 Ingrassia, P., 554 Inkson, K., 529 Intagliata, J., 543 Irmer, B. E., 525 Irving, P. G., 499, 537, 538, 552 Isaac, R. G., 542 Isen, A. M., 539 Isern, J., 555 Ittner, H., 537, 538 Ivancevich, J. M., 503 Ivcevic, Z., 500 Iverson, Ken, 461
Hill, A., 529 Hill, C. E., 496 Hill, E. J., 483 Hill, S., 493 Hille, K., 509 Hinds, P., 525 Hinings, C. R., 480, 531, 548 Hinings, R., 545 Hinkin, T. R., 508 Hirschman, A. O., 501 Hitlin, S., 482, 488, 506, 548 Hitt, M., 547 Hitt, M. A., 480 Ho, Elizabeth, 464 Ho, J. Y. C., 530, 554 Hock, M., 515 Hodo, Chikamoto, 269 Hoe, S. L., 526 Hoffjan, A., 494 Hoffman, B. G., 554 Hoffman, B. J., 488 Hoffmann, E. A., 501 Hofling, C. K., 531 Hofmann, W., 496 Hofstede, Geert, 53, 490, 548 Hofstetter, H., 551 Hogan, D. E., 495 Hogan, J., 486, 507 Hogan, R., 61, 155, 487 Hogg, M. A., 492, 493, 520, 533 Hohmann, G., 514 Holahan, P. J., 517, 535 Holland, B., 486, 507 Holland, R. W., 488, 506 Hollenbeck, J. R., 520 Hollingworth, D., 489 Holmberg, I., 542 Holmes, Deborah, 86 Holocek, A., 512 Holt, D. T., 553, 554 Holt, J. L., 537 Holtbrügge, D., 528 Holtom, B. C., 501 Holton, B. C., 501 Holtz, S., 527 Holwerda, J. A., 481 Homan, A. C., 483, 522, 523 Homburg, C., 546 Hon, A. H. Y., 511 Hong, Y., 502 Hooghiemstra, R., 494 Hoque, M., 545 Hornyak, K., 488 Horpestad, S., 489 Horstmann, G., 497 Horton, R. S., 523 Horvath, Cheryl, 63 Horvitz, T., 523 Hosford, C., 513, 539 Hough, L. M., 339, 536 Houghton, J., 514 Houghton, J. D., 514, 515, 518, 542 Houlihan, C., 498 Houlihan, M., 498 House, R., 534, 539, 540, 541, 542, 543,
544, 551
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I-12 Name Index
Kirchner, J., 523 Kirkcaldy, B. D., 511 Kirkman, B. L., 490 Kirkpatrick, S., 554 Kirkpatrick, S. A., 540, 543 Kirn, S. P., 107 Kirsch, D. A., 546 Kirsch, I., 508 Kish-Gephart, J. J., 489 Kitayama, S., 490 Kivimaki, M., 503 Klaas, B. S., 501 Klasko, Stephen, 103 Klayman, N., 517 Klehe, U.-C., 484, 521 Klein, G., 517 Klein, H. J., 502 Klein, K. J., 522 Klein, Marvin, 161 Kleinke, C. L., 495 Klimoski, R., 484 Klimoski, R. J., 497, 523 Klinger, P., 549 Klocke, U., 535 Klotz, A. C., 485 Kluemper, D. H., 487 Kluger, A. H., 517 Kluger, A. N., 509 Kluwer, E. S., 320, 339 Knight, D. J., 556 Knoch, D. D., 506 Knudsen, E. I., 493 Koch, A. S., 516 Koch, E. J., 491 Kochan, T., 483 Kochan, T. A., 536 Kock, N., 528 Koenig, R. J., Jr., 545 Koenig, R., Jr., 526 Koh, C. S.-K., 541 Kohli, A. K., 546 Kohlrieser, G., 544 Kohn, A., 512 Kohn, N. W., 526 Kollias, P., 514 Kolliopoulos, John, 415 Kolstad, A., 489 Komaki, J., 508 Kong Ranran, 113 Konradt, U., 521, 524, 525, 527, 548 Koo Bon-moo, 425, 426, 436–437 Kooij-de Bode, H. J. M., 516, 525 Koppell, T., 518 Koput, K. W., 518 Korman, A. K., 541 Kosalka, T., 542, 543 Koslowski, S. W. J., 552 Kostova, L. T., 503 Kotov, R., 504 Kotter, J. P., 433, 541, 549, 550, 553, 554 Kouchaki, M., 510, 521 Kouzes, J. M., 489, 495, 524, 539, 540, 543, 549 Kowske, B., 483 Kozlowski, S. W. J., 522, 523 Krackhardt, D., 532 Krass, P., 535
Katzenbach, J., 549 Katzenbach, J. R., 522 Katzenbach, N. d., 489 Kawamura, Takashi, 19 Kay, I. T., 479, 512 Kay, V. S., 491–492 Kayworth, T., 548 Keehn, Chris, 22 Keeley, J. W., 495 Kehoe, R. R., 481 Keil, M., 517, 518 Keil, R. M. K., 503 Keller, M., 513 Keller, R. T., 542 Keller, S., 554 Kelley, A. E., 506 Kelley, H. H., 494 Kelley, J. G., 546 Kelley, T., 519, 526 Kelloway, E. K., 541 Kelly, A.-M., 484 Kelly, E., 495 Kelly, J. R., 520, 528 Kelsey, C., 484 Keltner, D., 533 Kemmelmeier, M., 53, 489, 490 Kemmerer, B., 499 Kemp, C., 543 Kennedy, A. A., 549, 550 Kennedy, D. A., 487 Kennedy, E., 517 Kennedy, J. J. K., 542 Kennedy, J. T., 489 Kennedy, R. B., 487 Kennett, M., 532 Kenrick, D. T., 506 Keogh, Kyron, 142 Kerlinger, F. N., 478 Kern, M. L., 487 Kerr, J., 551 Kerr, N. L., 521 Kerr, S., 512, 541, 543 Kersnar, J., 546 Kesebir, S., 506 Kesler, G., 546, 547 Kessler, R. C., 503 Ketcham, J. D., 511 Khanna, V., 518 Khurana, R., 540 Kiesler, S., 525 Kietzmann, J. H., 260, 527 Kiger, P. J., 547 Kilduff, M., 532 Kilmann, R. H., 548, 555 Kim, E., 502 Kim, N. H., 538 Kim, T.-G., 552 Kim, Y. J., 490 Kincade, D. H., 545 King, C. L., 527 King, N., 513 King, R. C., 528 Kinicki, A. J., 548 Kinzler, K. D., 489 Kipnis, D., 533 Kirchmaier, T., 532
Johnson, R. M., 512 Johnson, Ron, 187–188, 191 Johnson, S. K., 495, 528 Johnson-Laird, P. N., 493 Jones, B. F., 520 Jones, D., 484 Jones, D. A., 510 Jones, G., 513, 554 Jones, Glyn, 456 Jones, G. M., 490 Jones, J. M., 512 Jones, M. O., 549 Jones, T., 516 Jones, T. J., 50, 489 Jonker, C. M., 497 Jonsson, P., 528 Joo, H., 509 Jordan, Bob, 410 Jordan, P. J., 101, 121, 499 Joseph, D. L., 500 Joseph, G., 493 Jossi, F., 504 Jost, J. T., 496 Jovic, E., 536 Joy, Hélène, 65 Joyce, A., 514 Judge, T. A., 487, 492, 498, 501, 533, 541, 542,
543, 551 Juillerat, T., 513 Jung, Carl G., 42, 43, 487 Jurado, M., 486 Jussim, L., 495 Justin, J. E., 542
K Kabanoff, B., 548 Kacmar, K. M., 534 Kahn, R. L., 479, 480 Kahneman, D., 194, 516, 517, 538 Kahwajy, J. L., 535, 537 Kalev, A., 495 Kammeyer-Mueller, J. D., 499, 552 Kanahara, S., 493 Kane, K. F., 485 Kanfer, R., 497 Kang, S.-C., 481 Kanigel, R., 479, 513 Kantabutra, S., 540 Kanter, R. M., 531, 532 Kanungo, R. N., 90, 489, 539, 540 Kapadia, R., 540 Kaplan, A. M., 527 Kaplan, D. A., 549 Karambayya, R., 538 Karapinar, K. B., 537 Karasek, R., 504 Karau, S. J., 521, 544 Karena, C., 530 Kariel, Patricia E., 250 Karraker, K., 486 Kassam, A. F., 555 Kast, F. E., 480 Katayama, H., 510 Kates, A., 546, 547 Katz, D., 479, 480
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Name Index I-13
Lepper, M. R., 516 Lepsinger, R., 541 Lermusi, Y., 551 Lerner, J. S., 516 Leroy, S., 512 Lester, W., 503 Leung, S. H. N., 522 Levary, R., 547 Levesque, L. C., 554 Levie, A., 258 Levine, D. S., 505 Levine, S. R., 480 Levine, S. S., 481 Levy, L., 542, 543 Levy, O., 496 Levy, P. E., 492, 534 Lewan, A., 479 Lewicki, R. J., 524, 537, 538, 539 Lewin, Kurt, 426, 440, 537, 552 Lewis, L. K., 554 Li, A., 503, 508 Li, F., 490 Li, H., 533, 545 Li, Z., 513 Liang, M., 504 Libby, T., 514 Licht, A. N., 482 Liden, R. C., 521, 541 Lieberman, M. D., 497, 498, 517 Liebowitz, S. J., 521 Lieske, J., 490 Lievens, F., 492 Lighton, J., 547 Likert, R., 519 Liley, H. G., 523 Lilien, G. L., 530, 554 Lim, B.-C., 522 Lim, V. K. G., 511 Li Mei, 167 Lin, N., 505 Lind, E. A., 495, 509, 510 Linderman, K., 489 Lindholm, T., 517 Lindsay, R. M., 514 Lindstrom, K., 547 Lindzey, G., 494 Linebaugh, K., 546 Linehan, M., 532 Ling, Y.-H., 479 Linley, P. A., 505 Linn, V. D., 511 Linsey, J. S., 526 Linzmayer, O. W., 515 Lipman-Blumen, J., 540 Lipnack, J., 524 Lipshitz, R., 517 Liska, L. Z., 542 Litman, J., 507 Litterer, J. A., 535, 537 Littler, C. R., 546 Liu, P., 513 Liu, Y., 481 Livesley, W. J., 486 Loan-Clarke, J., 501 Locke, E. A., 495, 498, 500, 506, 508, 509, 521,
539, 540, 541, 543, 554
Lane, F. C., 513 Lane, H., 550 Lane, H. W., 544 Langan-Fox, J., 523 Lange, D., 494, 541 Langfred, C., 523 Lapalme, M.-È., 552 Larkin, I., 512 Larson, J. R., Jr., 57 Larson, L. L., 540, 541–542 Larson, R. J., 497 Laschinger, H. K. S., 514 Latham, G., 514 Latham, G. P., 485, 508, 509 Lau, C.-M., 481, 556 Lau, D. C., 522 Lau, R. S., 535, 537 Laurence, B., 530 Law, K. S., 121 Lawler, E. E., 484, 507, 524 Lawler, E. E., III, 481, 507, 511, 513, 545, 546,
547, 549, 552, 554, 556 Lawrence, P. R., 132, 433, 479, 507, 520, 547 Lawrence, S. A., 101, 121, 499 Lawson, A., 484 Lawton, C., 553 Lazarsfeld, P., 478 Lazarus, R. S., 503, 504 Le, H., 487, 488, 500 Lea, S., 510 Leaman, A., 529 Leary, M. R., 491, 492, 506, 507, 509, 520 Leavitt, H. J., 546 Leavitt, K., 489 Lebeter, David, 247 Leblanc, P., 512 Ledford, G., 512 Ledford, G. E., Jr., 481 LeDoux, J. E., 498, 507 Lee, A. B. E., 490 Lee, C., 522, 535 Lee, D., 525 Lee, D. Y., 531 Lee, H., 527 Lee, J.-Y., 547 Lee, K., 485 Lee, L.-E., 507 Lee, T. W., 501 Lee, W. B., 522 Lee, Y., 528 Lee, Z., 528 Leggett Dugosh, K., 526 Lehrer, P. M., 503 Leidner, D. E., 524, 548 Leiter, M. P., 503 Leitman, I. M., 511 Lelchook, A. M., 486 Lemyre, L., 486 Lencioni, P., 533 Lengel, R. H., 264, 528 Lensvelt-Mulders, G., 486 Lent, R., 556 Lentz, James, 381 Leonardi, P. M., 526 Leotti, L. A., 506 LePine, J. A., 485
Kraus, Joe, 192 Kraus, L., 537 Krause, A., 524 Krauss, R. M., 527, 529 Krautman, A. C., 510 Kravcova, A., 514 Kray, L., 495 Kreitner, R., 136, 508 Krieglmeyer, R., 494 Krisher, T., 550 Krishnan, S. K., 526 Kriska, S. D., 533 Kristensen, T., 518 Kristof, A. L., 488 Kristof-Brown, A. L., 502, 551 Krohne, H. W., 515 Krueger, D. W., 510 Krug, J., 550 Kruger, J., 527, 529 Kruglanski, A., 517, 527 Kruglanski, A. W., 493 Kuczaj, S. A., 490 Kudisch, J. D., 531 Kuijpers, I., 493 Kuiper, N. A., 505 Kuipers, B. S., 487 Kuitenbrouwer, P., 515 Kujawa, P., 486 Kulik, C. T., 495, 510 Kuljanin, G., 491 Kumar, N., 501 Kuo, F.-Y., 524 Kupritz, V. W., 528 Kurland, N. B., 483 Kurz, R., 485 Kwang, T., 492 Kwok, J., 496 Kwon, S., 538 Kwon, S.-W., 532 Kwun, S. K., 513
L LaBarre, P., 524 Labrador, J. R., 492 Lachman, M. E., 490 Lackman, C. L., 521 Ladendorf, K., 548, 552 Ladkin, D., 531 Lago, P. P., 526 LaHood, R., 273, 530 Lai, C.-Y., 492 Laibson, D., 516 Lakin, J. L., 528 Lalicker, Greg, 157 Lam, A., 546 Lam, S. K., 107, 502, 525 Lam, S. S. K., 521 Lamb, M., 494 Lamm, E., 498 Lammers, J., 533 Lamothe, Marie-Josée, 311 Lampe, C., 532 Lancaster, C. M., 555 Landler, M., 335 Landry, M., 534
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I-14 Name Index
Maslow, A. H., 124, 127, 132, 506 Maslowski, R., 549 Mason, J., 478 Massoud, M. F., 550 Mathieu, J. E., 514, 521, 523 Matsui, T., 507 Matsumoto, D., 499 Matthews, G., 499 Mattioli, D., 515 Mattson, J., 541 Matuson, R. C., 533 Maurer, R., 553 Maurer, Rick, 240 Maxcy, J., 509 Maxwell, J. C., 540 Maxwell, Melanie, 229 May, D. R., 489 Mayer, J. D., 499, 500 Mayfield, J., 539 Mayhew, M., 503 Mayhew, M. G., 492 Maynard, M. T., 514, 525 Mayo, Elton, 5–6, 312 Mazar, N., 488 McAdam, Lowell, 18 McAdams, D. P., 486 McAllister, D. J., 524 McCann, J., 480 McCann, L., 546 McCarter, M. W., 521 McCarthy, M., 484, 515 McCarthy, S., 483–484, 532 McClain, D. L., 451 McClarty, K. L., 492 McClelland, C. L., 513 McClelland, David, 124, 128–130 McClelland, D. C., 506, 507 McCloskey, D. W., 483 McComb, S., 522 McConnell, A. R., 491 McCormick, M. T., 556 McCracken, D. M., 533 McCrae, R. R., 486, 487, 509 McCreaddie, M., 505 McDermott, R., 520, 532 McDonald, P., 504 McDuling, J., 539 McElroy, J., 554 McEwan, Rob, 430 McFarland, L. A., 533 McGaw, N., 489 McGee, K., 548 McGill, M. E., 481 McGrath, J. E., 521 McGraw, P., 523 McGregor, D., 519 McHugh, M., 554 McInnis, K. J., 552 McKee, A., 499, 529, 543 McKendall, M., 556 McKersie, R. B., 538 McLaughlin, M., 498 McLellan, J., 545 McMath, Iain, 297 McMullin, J. A., 536 McMurrer, D., 480
Madrian, B., 516 Madsen, S. R., 504 Maeda, Y., 489 Mael, F., 550 Maertz, C. P., 501 Maggitti, P. G., 525 Maggs, A. J., 512 Magnesen, Scott, 219 Mahometa, M. J., 528 Ma Huateng, 347 Maier, N. R. F., 484 Maio, G. R., 488, 498, 550 Maitlis, S., 533 Majchrzak, A., 530 Makhijani, M. G., 544 Malekazedeh, A. R., 550 Malekzedeh, A. R., 409 Malhotra, D., 524, 538 Malle, B. F., 494, 495 Mallott, M., 495 Malone, P. S., 495 Malone, W., 494 Malouff, J., 508 Malshe, A., 521 Maltby, E., 498 Maltin, E. R., 502 Man, D. C., 521 Manby, J., 496 Manby, Joel, 84 Manikonda, P., 505 Manjoo, F., 480 Manktelow, K., 515 Mannion, A., 488 Mannix, E., 519, 522, 549 Mannix, E. A., 533 Mano, R. S., 527 Manz, C. C., 514, 524, 542 March, J. G., 515 Marchionne, S., 343, 375–376, 539, 546 Marcus, E. C., 535 Margo, J., 539 Margulies, N., 550 Mark, P. Z., 525 Markel, K. S., 510 Marks, G., 495 Marks, M. A., 521 Marks, M. L., 550 Marling, S., 546 Marshak, R. J., 556 Marshall, V., 520 Marsick, V. J., 555 Martens, K., 556 Martens, M. L., 524 Martin, G. E., 536 Martin, G. L., 514 Martin, H. J., 155 Martin, J., 548, 549, 550 Martin, P., 541 Martin, R., 542, 555 Martin, R. L., 546 Martins, L. L., 525 Martins, N., 497 Martinussen, M., 504 Masada, G., 546 Masicampo, E. J., 507 Maslach, C., 503
Locke, J. L., 529 Locke, W., 550 Lodewijkx, H. F. M., 525 Lodi-Smith, J., 491 Loehlin, J., 486 Loewenstein, G., 506, 507, 516 Lofquist, E. A., 554 Logan, Prescott, 317 Logue, A. W., 514 Loh, T., 527 London, M., 508, 509 Long, R. J., 511 Long, S., 496, 498 Lopez, R. J., 487 Lopez, S., 555 Lord, R. G., 497, 542, 543, 544 Lorsch, J. W., 532, 547, 553 Lorsch, L. W., 479 Lotia, Nuzhat, 469, 470 Loughnan, S., 491, 517 Loughry, M. L., 230, 522, 542 Louis, M. R., 550, 552 Løvås, B., 526 Low, D. R., 518 Lowy, Frank, 332 Lozano, J. A., 548 Lubahn, J., 554 Lubinski, D., 488 Lublin, J., 553 Lublin, J. S., 515 Lucas, R. E., 497 Lucas, W., 527 Luchak, A. A., 502 Lucking-Reiley, D., 512 Lucy, M., 512 Luechauer, David L., 421, 422 Luft, J., 496 Luft, Joseph, 82 Luna-Arocas, R., 481 Luthans, F., 136, 504, 506, 507, 508 Luyckx, K., 491 Lyne, S. R., 494 Lynn, B. E., 547 Lynn, G. S., 481 Lynn, R., 511 Lyons, S., 483 Lytle, A. L., 536
M Ma, Z., 536, 537 MacDonald, Emily, 63 MacDougall, M. P., 514 Macey, W. H., 505, 551 Machiavelli, Niccolò, 304 Machin, Stuart, 405 Maciariello, J. A., 540 Macintosh, N. B., 513 MacKenzie, S. B., 542 Mackey, A., 480, 482, 540 Mackey, John, 238, 524 Mackey, T. B., 482 Macleod, D., 505 Macrae, C. N., 493 Madell, R., 532 Madon, S., 495
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Name Index I-15
Morris, A., 529 Morris, J., 546 Morris, J. A., 499 Morrison, E. W., 485, 552 Morrison, K. R., 492 Morrison, R., 498 Mors, M. L., 526 Morse, J., 489 Mortensen, M., 520 Moses, B., 507, 512 Moskowitz, J. T., 504 Mossholder, K. W., 535 Mossman, J., 502 Mostray, R., 509 Mouawad, J., 553 Moultrie, J., 518 Mount, M. K., 487 Moutafi, J., 487 Mouton, J. S., 320, 339, 534, 536 Mowday, R. T., 502, 505, 510 Mueller, J. S., 518, 522, 525 Mueller, M., 462 Muhammad, R. S., 548 Mulac, A., 529 Mulally, Alan, 437 Mulholland, H., 504 Mullen, B., 495, 523, 525 Muller, D., 528 Mumford, M. D., 518, 540 Mumford, T. V., 509 Munger, M., 512 Munos, J. C., 512 Murnighan, J. K., 522 Murphy, K., 487 Murphy, K. M., 545 Murphy, S. E., 543 Murray, B., 519 Murray, G., 481 Murray, S. R., 526 Muthusamy, S. K., 524 Muzyka, R., 547 Myers, I. B., 487 Myers, M. S., 479 Myerson, J., 549
N Nabatchi, T., 538 Nadler, D. A., 371, 507, 545, 547, 553, 555 Nadler, I., 523 Nagai, Y., 526 Nahavandi, A., 409, 550 Naidu, V., 502 Nairn, G., 527 Nakamoto, M., 529 Namy, L. L., 529 Nancherla, A., 495 Nanus, B., 539, 540, 541 Naor, M., 489 Napoleon, 374 Nardelli, Robert, 266, 412, 427, 435 Nasser, Jacques, 426 Nasurdin, A. A. M., 546 Nauta, A., 320, 339 Nave, C. S., 485 Neal, A., 484, 485, 487
Mills, A. J., 506 Mills, C., 530 Mills, J., 523 Milne, A. B., 493 Milosavljevic, M., 497 Milstein, M., 482 Miltenberger, R. G., 508 Minbashian, A., 487 Miner, J. B., 478, 509, 543 Minette, K. A., 511 Ming, S., 514 Minnelli, Liza, 360, 544 Minnelli, Vincente, 544 Minson, J. A., 525 Mintzberg, H., 371, 515, 530, 534, 545,
546, 547 Mintzer, A. C., 520 Miron, D., 507 Miron-Spektor, E., 480 Mischel, W., 486 Mitcham, C., 489 Mitchell, A., 484 Mitchell, T. R., 57, 484, 501, 510, 515, 542 Mitham, P., 551 Mitra, A., 511 Mitra, M., 547 Mitsuhashi, H., 546 Miyahara, K., 531 Moberg, D. J., 538 Moberg, P. J., 536 Mobley, W. H., 496 Moeller, C., 537 Mohr, B. J., 555 Mohrman, A. M., Jr., 479, 480, 520, 524 Mohrman, S. A., 479, 480, 481, 520, 524, 546 Moldaschl, M., 520, 524 Molleman, E., 483, 524 Mollohan, J. K., 508 Molloy, J. C., 502 Mondello, M., 509 Monden, Y., 545 Mone, E. M., 508 Monetta, D. J., 556 Monin, B., 506 Montes, S. D., 552 Montier, J., 491 Montoya, R. M., 523 Mooney, A. C., 517, 535, 553 Moore, C., 481, 485 Moore, D. A., 491, 538 Moore, D. D., 230, 522 Moore, O., 515 Moorhead, R., 513 Moorman, R., 510 Moran, A., 514 Moran, R., 529 Mor Barak, M. E., 501 Morgan, G., 480, 529, 547 Morgan, K., 490 Morgan, R., 518 Morgenson, F. P., 522 Morgeson, F. P., 487, 509, 512 Morin, L., 514 Morouney, Kim, 394 Morrell, K., 501 Morrill, C., 549
McNabb, R., 511 McNulty, S., 548 McRae, B., 538 McShane, Steven L., 27, 121, 152, 153, 181, 213,
214, 246, 247, 251, 280, 281, 306, 309, 334, 335, 339, 364, 365, 395, 421, 423, 450, 452, 453, 459, 471, 501, 526, 551
Mealiea, L., 523 Meaney, M., 553 Means, S. P., 530 Medsker, G. J., 521 Medvec, V. H., 516 Meeks, M. D., 498 Meglino, B. M., 482, 488, 548 Mehl, M. R., 496 Mehra, A., 532 Meier, F., 546 Meier, L. L., 535 Meindl, J. R., 366, 542, 543 Meinert, D., 483, 506, 555 Meister, J. C., 508 Mekkaoui, R., 483 Melhem, Y., 514 Melia, J. L., 531 Meller, B. A., 507 Meloy, M. G., 516 Melwani, S., 518 Memon, Z., 498 Mencius, 167 Menon, S. T., 513 Meriac, J., 483 Mesch, G. S., 527 Mesmer-Magnus, J., 498 Mesmer-Magnus, J. R., 522, 523 Metcalf, H. C., 479, 535 Meyer, J. C., 549 Meyer, J. P., 502, 537, 538, 552 Meyer, R. D., 485 Meyer, R. M., 545 Meyerson, D. E., 527 Meznar, M. B., 554 Michael, J., 487 Michaelides, G., 522 Michalska, K. J., 489 Michinov, E., 520 Michinov, N., 520, 526 Mickel, A. E., 510, 511 Micklethwait, J., 479 Mifune, N., 494 Mikitani, Hiroshi, 84 Milani, L., 529 Mildenberger, Laura, 106 Miles, R. F., 547 Miles, R. H., 554 Miles, S., 481 Milgram, Stanley, 287 Milkman, K. L., 521 Milkovich, C., 512 Milkovich, G. T., 510, 512 Mill, J. S., 159, 511 Millemann, M., 556 Miller, C. C., 548 Miller, D., 517, 525, 548, 553, 555 Miller, D. T., 494, 509, 510 Miller, N., 495 Miller, Tim, 142
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I-16 Name Index
Ouchi, W., 520, 530 Overman, S., 505 Owen, G., 532 Owens, D. A., 527 Owler, K., 498 Oyserman, D., 53, 489, 490 Ozcelik, H., 499 Ozer, M., 485
P Pachulicz, S., 491 Padgett, N., 462 Page, Larry, 192 Paine, L. S., 482 Pakrashi, M., 493 Palanski, M. E., 544 Palmer, D., 479 Palmisano, S. J., 546 Pals, J. L., 486 Paluck, E. L., 495 Palvia, P., 527 Panaccio, A., 502 Panchak, P., 524 Panipucci, D., 522 Panteli, N., 527 Papaioannou, A., 514 Papper, E. M., 521 Paquin, A. R., 540 Parker, Bill, 3 Parker, C. P., 481 Parker, M., 494 Parker, S. K., 484, 485, 496, 513 Parkers, C. P., 512 Parks, L., 488, 506, 512 Parmar, B., 482 Paroush, J., 520 Parry, E., 483 Parry, K. W., 540 Parry, R. L., 531 Pasa, S. F., 533 Pascale, R. T., 520, 556 Pascoe, M., 550 Passyn, K., 506 Patel, P., 510 Patel, P. C., 522 Pathak, R. D., 540 Patterson, K., 541 Paukert, M., 502 Paulus, P. B., 526 Pawar, B. S., 541 Peach, M., 523 Pearce, C. L., 539, 540, 542 Pearce, D. S., 556 Pearson, C. M., 504 Peart, F. M., 499 Pedersen, L. J. T., 489 Pederson, J. S., 549 Peiperl, M. A., 509 Peiro, J. M., 531 Pelled, L. M., 535 Pelloni, O., 502 Pelton, L. E., 533, 534 Peng, A. C., 490 Peng, M. W., 479 Peng, Sean Kian, 84
Obel, B., 546, 547 O’Brien, D., 515 O’Brien, M., 525 Ochsner, K. N., 506 O’Connell, D., 539–540 O’Connell, M. S., 492 O’Connor, B., 549, 551 O’Connor, E., 479 O’Connor, J. R., 530 Oels, A., 556 Oerlemans, L. A. G., 535 Offerman, L. R., 520, 542 Ogbonna, E., 549 Ogilvy, David, 403 Oh, L.-S., 487 O’Hara, L. A., 518 Ohland, M. W., 230, 522 Ohmae, K., 482 Ohtaki, S., 529 Ohtaki, T., 529 Oishi, S., 506 Okamura, R., 510 Okdie, B. M., 487 O’Keefe, D. J., 533 Olaisen, J., 480 Oldham, G. R., 170, 183, 513, 518, 519 Olds, Ransom E., 459–460 Olekalns, M., 539 Oliviero, H., 488 Olivola, C., 493 Olsen, B., 480 Olson, J. M., 494, 517, 550 Olson, K. M., 494 Olson-Buchanan, J. B., 501, 510 O’Neil, J., 534 O’Neill, G., 551 O’Neill, O. A., 548 Ones, D. S., 486, 488 Oosterhof, N. N., 493 Opp, K.-D., 523 Oppenheimer, Robert J., 150 Opperman, Fane, 219 Orbell, S., 498 Oreg, S., 551, 553 O’Reilly, C. A., 480, 523 O’Reilly, C. A., III, 401, 482, 548, 550 O’Reilly, J., 531 Orem, Sara L., 119 Orem, S. L., 509 Organ, D. W., 478, 485 O’Rourke, William, 51 Orr, L. M., 510 Ortiz de Guinea, A., 525 Osbom, R. N., 542 Osborn, A. F., 243, 525 Osborne, L., 480 Osman, M. R., 545 Osorio, J., 520 Osterman, P., 513 Ostroff, C., 480, 548, 552 O’Sullivan, M., 535 Oswick, C., 484 Otondo, R. F., 528 O’Toole, J., 522, 526, 529 Ott, J. S., 549 Otto, K., 488
Neale, M. A., 519, 522, 523, 527 Neale, Tim, 453, 454 Nebenzahl, D., 534 Neck, C., 514 Neel, K. C., 488 Neeley, T. B., 526 Neider, L. L., 542 Neil, D., 481 Neilson, G. L., 545 Nelis, D., 500 Nelson, D. L., 503, 552 Nelson, R. J., 503 Nemiro, J., 525 Nesbit, R., 538 Newell, Gabe, 369 Newman, A., 496 Newman, D. A., 500, 501 Newman, J. M., 512 Newman, V., 553 Ng, E., 483 Ng, Ellis, 174 Ng, J., 531 Ng, K.-Y., 541 Ng, T. W. H., 485, 491, 492, 499, 504 Ngayo, Adelaide, 124 Ngo, H. Y., 556 Ngure, Simon, 375 Nicholls, C. E., 544 Nicholson, N., 530, 542, 551 Nicholson-Crotty, S., 545 Nickerson, R. S., 493, 517, 518 Nicolai, A., 479 Nicolini, D., 554 Nielsen, T. M., 485 Niepce, W., 524 Nieves, J., 520 Nifadkar, S., 552 Nijstad, B. A., 525 Nilekani, Nandan, 405 Niles, F. S., 490 Nir, D., 509 Nisbett, R. E., 495, 515 Nix, S., 545 Nobel, R., 547 Nogueir, C., 480 Nohria, N., 132, 479, 507, 520, 532 Noon, M., 530 Nord, W. R., 531, 541 Norenzayan, A., 495 Northcraft, G. B., 509, 523, 536 Nougaim, K. E., 506 Nuch, H., 510 Nugent, P. S., 538 Nukman, Y., 545 Nunes, P., 551 Nur, Y. A., 540 Nutt, P. C., 498, 515, 516, 517 Nyberg, A. J., 525 Nye, J. L., 543 Nygaard, L. C., 529
O Oakes, E., 518 Oakley, J. G., 544 O’Bannon, I. M., 493
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Name Index I-17
Ragins, B. R., 532 Rahavendra, Sumesh, 123 Rahim, M. A., 320, 339, 534, 535, 536 Rai, A., 517 Raiborn, C. A., 550 Rain, J. S., 495 Raines, C., 482 Raisinghani, D., 515 Ramburuth, P., 490 Ramsøy, T. Z., 497 Randolph, A., 542 Randolph, W. A., 513, 547 Ranson, S., 545 Rao, A., 533 Rao, H., 501, 549 Rasch, R., 483 Rassin, E., 493 Raven, B., 530, 531 Raven, Bertrand, 286 Ravid, S., 499 Ravlin, E. C., 482, 488, 548 Raynor, M. E., 484 Raz, A. E., 499 Read, M., 550 Ready, D. A., 543, 544 Reason, P., 555 Reed, E. S., 494 Regan, C., 545 Reicher, S., 527 Reicher, S. D., 492 Reid, D. A., 484 Reider, M. H., 522 Reilly, M. D., 487 Reilly, R. R., 509 Reimann, M., 507 Reindl, J. C., 479 Reinsch, N. L., Jr., 528 Reio, T. G., Jr., 507 Reis, D. L., 500 Reisenzein, R., 497 Rempel, M., 523 Renn, R. W., 515 Renshon, J., 517 Rentfrow, P. J., 490, 491 Rentsch, J. R., 503, 539 Repetti, R. L., 503 Resick, C. J., 551 Restubog, S. L. D., 554 Reynolds, B., 486 Reynolds, C. A., 487 Reynolds, K. J., 492 Reynolds, M., 394 Reynolds, S. J., 489 Rhodes, N., 533 Riccomini, B., 530 Rice, R. E., 528 Richardson, A. M., 504 Riche, M. F., 482 Rico, R., 522 Ridderstrâle, J., 547 Riel, J., 555 Rietzschel, E. F., 525 Riggio, R. E., 539, 540, 550 Riketta, M., 502 Riley, C., 541 Rindova, V. P., 543
Polanyi, M. F. D., 556 Pollock, T. G., 543 Pondy, L., 536 Pondy, L. R., 549 Pooley, J. A., 494 Pope, Kevin, 202 Popper, M., 543 Porath, C. L., 504 Porras, D., 483 Porras, J. I., 482, 549 Porter, C. O. L. H., 522 Porter, L. W., 484, 502, 507, 508, 510, 534, 552 Porter, M. E., 532 Porter, S., 500 Portes, A., 532 Portman, J., 516 Posner, B. Z., 489, 495, 524, 539, 540, 543, 549 Postmes, T., 493, 536 Poteet, M. L., 531 Potter, R. E., 548 Poturalski, H., 511 Powell, G. N., 544 Powell, L. A., 510 Powell, S., 519 Power, M., 498 Prasad, S., 546 Pratt, J., 556 Pratt, M. G., 517 Prelec, A., 516 Premeaux, S. F., 501 Prencipe, A., 480 Pressey, D., 532 Preuss, L., 489 Price, Melissa, 3 Prietula, M. J., 481 Prislin, R., 533 Pritchard, R. D., 484 Psihountas, D., 483 Ptashkin, S., 490 Pugh, D. S., 548 Pugh, S. D., 499 Pulakos, E. D., 485 Pung, C., 553, 555 Putnam, L. L., 537 Pyrillis, R., 512
Q Qiu, J. X. J., 547 Quick, J. C., 503 Quill, G., 491 Quinn, R. E., 513, 539, 549, 554, 555 Quinn, R. T., 107 Quist, Don, 164
R Rabung, S., 528 Radford, A., 555 Raelin, J. A., 539 Rafaeli, A., 499 Rafaeli-Mor, E., 491 Raffa, D., 553 Rafferty, A. E., 554 Raghav, K., 552 Raghuram, S., 504
Pennington, R., 529 Pepper, M. B., 495 Perkel, C., 531 Perri, David F., 335, 338 Perri, D. F., 536 Perron-Chow, J., 490 Perrow, C., 513, 548 Perry, S. J., 487 Perry, V. G., 491 Perryer, Chris, 484 Perryman, S., 505 Pervin, L. A., 486 Pescuric, A., 508 Peters, R. S., 506 Peters, Susan, 271 Peters, T., 530, 533 Peters, T. J., 550 Peters, Tom, 374 Petersen, L.-E., 543 Petersen, R., 549 Peterson, L., 500 Peterson, M. F., 549 Peterson, S. J., 540, 541 Petmezas, D., 491 Pettigrew, A. M., 530 Pettigrew, T. F., 496, 537 Petty, R., 533 Pexman, P. M., 527 Peyrefitte, J., 526 Pfaff, D. W., 506 Pfau, B. N., 479, 512 Pfau, M., 533 Pfeffer, J., 482, 483, 484, 506, 512, 517, 530,
531, 534, 543 Phair, T., 556 Pham, M. T., 498, 516, 517 Phillips, J. M., 552 Phipps, K. A., 536 Piccolo, R. F., 541, 542, 543 Piekkari, R., 529 Pierce, J., 503 Pierce, J. L., 511, 520, 554 Pierce, L., 512 Pietroni, D., 539 Pike, A., 545 Pilavin, J. A., 482, 488, 506, 548 Pillutla, A., 540 Pinder, C. C., 485, 505, 508, 509 Pinsonneault, A., 526 Piper, W., 523 Pirson, M., 524 Pitcher, Mike, 98 Pitt, D. C., 542 Pizarro, D. A., 506 Plank, R. E., 484 Plassman, H., 497 Plato, 5, 71, 167, 188, 493 Platow, M. J., 492, 540 Platt, C., 499 Plaut, V. C., 490 Plester, B., 498 Podsakoff, P., 531 Podsakoff, P. M., 542 Poff, D., 489 Poitras, J., 537 Polanyi, M., 519
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I-18 Name Index
Salzberg, Barry, 291 Samaratunge, R., 498 Samuel, S., 519 Sanchez, J. I., 505 Sánchez-Manzanares, M., 522 Sanders, James, 138 Sanderson, P. M., 523 Santana, A., 482 Santora, J. C., 541 Santoro, M. D., 521 Santos, T., 546 Santosuosso, E., 544 Sapienza, H. J., 536 Sapong, E., 502 Sappenfield, M., 544 Sapuan, S. M., 545 Sarala, R. M., 536 Sarch, D., 550 Sarros, J. C., 541 Sashittal, H., 521 Sassenberg, K., 528 Sasser, W. E., 107, 502 Satterwhite, S. R., 541 Sauerteig, D., 529 Sauleya, K. A., 534 Sauleys, K. S., 510 Saunders, A., 514 Saunders, C. S., 531 Saunders, D., 537 Saunders, T. S., 493 Savoie, A., 230, 522 Savoye, C., 489, 543 Sawyer, R. K., 516 Scarbrough, H., 545 Scarlet, CJ, 77 Schacter, S., 520 Schatzker, E., 530 Schau, C., 444 Schaubroeck, J., 490, 494, 499, 525 Schaufeli, W. B., 503, 505 Scheier, M., 486 Schein, E. H., 548, 549, 550, 551 Schepers, J., 525 Schepman, S., 508 Scherer, A. M., 493 Scherer, K. R., 516 Schettler, J., 543 Schick, A. G., 479, 529 Schiller, M., 555 Schilling, M. A., 547 Schilpzand, M. C., 525 Schlaerth, A., 535–536 Schleicher, D. J., 501 Schlender, B., 479 Schlesinger, L. A., 107, 433, 502, 553 Schmid, B. E., 519 Schmidt, D. B., 488 Schmidt, J., 504 Schmidt, S. M., 533, 536 Schmidt, W. H., 542 Schminke, M., 509, 510 Schmitt, N., 480, 491 Schnake, M. E., 508 Schneider, B., 505, 549, 551 Schneider, B. H., 499
Ross, M., 494 Ross, S., 493 Ross, W. H., 538, 539 Rosselli, M., 486 Roth, D., 549 Roth, P. L., 500, 501 Rothenberg, R., 516 Rothermund, K., 515 Rotter, J. B., 492 Rotundo, M., 485, 512 Rounds, J., 485 Rousos, R., 530 Rousseau, D. M., 483–484, 503, 510, 524, 552 Rousseau, V., 230, 522 Roussel, P., 485 Rout, L., 512 Rowney, J., 490 Roy, J. N., 485 Rubie-Davies, C. M., 495 Rubin, J. Z., 538, 539 Rubin, M., 494, 536 Rubin, R. S., 499 Rubini, M., 529 Ruble, T., 536 Ruble, T. L., 320 Rucci, A. J., 107 Ruddick, G., 480 Ruedy, N., 489 Rugg, A., 500 Runco, M. A., 518 Ruona, W. E. A., 553 Rupp, D. E., 499 Russ, T. L., 554 Russell, B., 497 Russell, J. A., 95, 497 Russell, J. D., 519 Russo, F., 530 Russo, J. E., 516, 535 Rustagi, G., 526 Rutledge, T., 510, 537 Ruys, K. I., 498 Ryan, A. M., 533 Ryan, R. M., 513 Rydell, R. J., 491 Rynes, S. L., 479, 484, 511, 512
S Saad, L., 501 Saari, L., 501 Saavedra, R., 513 Sablonnière, R. D. L., 553 Sacchi, S., 516 Sacco, D. F., 494 Sackett, P., 485, 512 Safdar, S., 499 Sagiv, L., 482, 488, 494 Saint-Onge, H., 480 Saks, A. M., 481, 485, 514, 527, 551, 552 Salacuse, J. W., 539 Salancik, G. R., 482, 498, 506, 531 Salas, E., 525 Salo, I., 517 Salovey, P., 499, 500, 529 Salpietra, Tom, 173
Ringer, R. C., 534 Rink, F., 523 Rips, L. J., 493 Risavy, S. D., 488 Risberg, A., 536 Ritchie, T. D., 491 Ritov, I., 516 Rivera, M. T., 523, 525, 532 Rivera, R., 496 Rivington, F., 529 Roan, A. M., 499 Robb, D., 508 Robbins, A. S., 504 Roberge, M.-E., 483 Roberson, L., 495 Robert, C., 498 Robert, L. P., 524, 528 Roberto, M. A., 515, 554 Roberts, B. W., 486, 491 Roberts, J. A., 185 Roberts, K., 510 Roberts, R. D., 499 Robertson, I. T., 485, 510 Robertson, R. J., 538 Robey, D., 518, 525 Robinson, A. G., 519 Robinson, D., 505 Robinson, E. A., 480 Robinson, M. D., 516 Robinson, S. L., 531, 552 Rochester, T., 496 Rode, J. C., 488, 500 Roe, R. A., 502, 540 Roese, N. J., 494, 517 Roethlisberger, Fritz, 5, 480 Rogelberg, S., 483 Rogelberg, S. G., 514 Rogers, C. B., Jr., 489 Rogers, E. M., 555 Rogers, H., 528 Rogers, K. H., 490 Rogers, William, 345 Rogerson, L. J., 514 Rohr, Peter, 219 Rokeach, M., 45–46, 516 Roman, K., 549 Romeo, J., 508 Romero, E. J., 498, 505 Rometty, Virginia, 404 Rompré, Marjolaine, 311 Rong, K., 522 Roome, N., 482 Rose, G. M., 510 Rose Markus, H., 490 Rosen, C., 511, 512 Rosen, C. C., 492, 534 Rosen, H., 538 Rosen, P. A., 487 Rosenband, L. N., 513 Rosenberg, E., 528 Rosengren, A., 503 Rosenzweig, J. E., 480 Rosenzweig, P., 495 Rosnow, R. L., 530 Ross, J., 517, 518
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Name Index I-19
Simpson, B., 533 Sims, H., Jr., 542 Sin, L., 518 Sinclair, A., 258, 549 Sinclair, S. A., 496 Sine, W. D., 546 Singer, J. A., 490 Singer, M., 547 Singer, S., 535 Singh, R. P., 479 Singleton, S., 551 Sinha, J. B. P., 489 Sink, D. S., 556 Sinkula, J. M., 540, 550 Sirower, M. L., 550 Sitkin, S. B., 484, 541 Sivanathan, N., 517, 518 Sivasubramaniam, N., 521 Sjöberg, L., 517 Skarlicki, D. P., 510 Skerritt, J., 486 Skilton, P. F., 519 Skinner, B. J., 508 Skinner, C., 543 Skitka, L. J., 495 Skorinko, J. L., 496 Slater, P. E., 519 Slater, Steven, 93–94, 95 Sleesman, D. J., 517 Sliter, K., 486 Sliter, M., 486 Slocum, J. W., Jr., 481, 484, 551 Sluss, D. M., 551 Smalley, K., 502 Smallwood, N., 543 Smelser, N., 529 Smisek, Jeffrey, 428 Smith, A. C. T., 549 Smith, Adam, 5, 167, 513 Smith, A. E., 495 Smith, A. R., 493 Smith, C. L., 526 Smith, D. K., 522 Smith, F., 549 Smith, F. L., 516 Smith, G., 549 Smith, Greg, 403 Smith, J., 479 Smith, K. G., 480, 534 Smith, K. W., 409, 550 Smith, Nina, 296 Smith, P., 539 Smith, R., 550 Smith, R. S., 512 Smith, S., 549 Smith, Samuel, 459 Smith, S. M., 526 Smith, T. W., 500 Smither, J. W., 509 Smollan, Roy, 462 Snell, S. A., 481 Snir, R., 504 Snow, C. C., 547 Snyder, C. R., 555 Snyder, N. T., 549
Shalley, C. E., 513, 518, 519 Shamian, J., 514 Shamir, B., 540 Shane, S., 506 Shani, A. B., 556 Shannon, C. E., 527 Shao, P., 494 Shapiro, A., 553 Shapiro, D. L., 505, 536, 537 Shapiro, J. M., 493 Sharma, R. R., 553 Sharpe, R., 544 Shave, M., 505 Shaw, George Bernard, 266 Shaw, J., 500 Shaw, J. D., 511, 535 Shaw, M. E., 520 Shea, C. M., 539 Shea, G. P., 521 Shearing, E., 498 Sheehan, M., 517 Sheldon, K. M., 513 Shepard, H. A., 320, 339, 534, 536 Shepherd, P., 50, 489 Sheppard, B. H., 538 Shepperd, J., 494 Shepperd, J. A., 491 Sheremeta, R. M., 521 Sheridan, Richard, 229 Sherif, M., 537 Sherman, J. W., 493, 494 Sherman, R. A., 485 Sherwood, J. J., 523 Shetcliffe, J., 297, 533 Shevory, K., 529 Shih, H.-A., 536 Shipton, H., 481 Shirouzu, N., 546 Shondrick, S. J., 543 Shook, R., 540 Shore, L. M., 522 Shull, F. A., Jr., 515 Shulman, Gary M., 421, 422 Shultz, J., 504 Sibley, C. G., 491 Siegall, M., 504 Siegel, P. A., 509 Siehl, C., 548, 549 Siekman, P., 547 Sigall, H., 529 Sills, J., 533 Silva, Renan, 303 Silver, H., 549 Silverman, R. E., 547 Silverzweig, S., 550 Silvestre, B. S., 260 Simard, G., 552 Sime, W. E., 503 Simmel, Georg, 535 Simmons, B. L., 503, 524 Simms, J., 537 Simon, H. A., 193, 196, 515, 516, 517 Simons, D. J., 493 Simons, T., 489, 524 Simonson, I., 518
Schneider, D. J., 493 Schoorman, F. D., 517 Schorg, C. A., 550 Schouten, M. E., 520 Schriesheim, C. A, 508, 531, 541, 542 Schroeder, D. M., 519 Schroeder, R., 489 Schumann, P. L., 489 Schuster, J. R., 511 Schutte, N. S., 121 Schwalm, Cynthia, 47 Schwartz, H., 488 Schwartz, N. D., 335 Schwartz, S. H., 482, 488, 507 Schwartz, Shalom, 46, 131 Schwartz, S. J., 491 Schwarz, John, 324 Schwarz, N., 488, 498, 517 Schweitz, R., 556 Schweitzer, L., 483, 524 Schweitzer, M., 489 Schweizer, T. S., 518 Schyns, B., 366, 543 Scott, B. A., 505, 541 Scott, D., 514 Scott, J. C., 508 Scott, K. A., 543 Scott, K. S., 479 Scott, T., 548 Scott, T. H., 507 Scott-Findlay, S., 548 Scott-Ladd, B., 520 Scudamore, Brian, 274 Scully, J. A., 512 Seabright, M. A., 510 Searcey, D., 546 Searle, R., 524 Seaton, B., 50, 489 Sebastian, S., 510 Secret, M., 505 Sedikides, C., 491, 492 Seeger, John A., 306 Seeman, T., 503 Segal, N. L., 486 Seidl, D., 479 Seidner, R., 526 Selden, S. C., 480 Self, T. W., 492 Seligman, M. E. P., 506, 555 Sels, L., 481 Selye, H., 110–111, 503 Semler, R., 519 Semler, Ricardo, 357 Sendjaya, S., 541 Senge, P. M., 480, 493 Senior, B., 522 Senor, D., 535 Seo, M.-G., 509 Sepulveda, C. J., 185 Sewards, M. A., 506 Sewards, T. V., 506 Shabana, K. M., 482 Shachaf, P., 527 Shadbolt, Lucy, 291 Shahin, A. I., 531
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I-20 Name Index
Sytch, M., 531 Szabo, E., 544 Szabo, E. A., 533
T Taggar, S., 518, 523 Tagney, J., 491 Taillieu, T. C. B., 540 Taing, M., 502 Takala, T., 479 Takano, Y., 490 Tan, N. T., 554 Tanaka, Satoshi, 269 Tang, C., 499 Tang, T. L.-P., 505, 510, 511 Tangirala, S., 501 Tannen, D., 529 Tannenbaum, R., 542 Tannenbaum, S. I., 520 Tanner, J. F., 534 Tan Tong Hai, 289 Taormina, R. J., 532 Tapias, M. P., 520 Taras, V., 490 Tarrant, M., 496 Tasa, K., 525 Tata, J., 546 Tate, Teresa, 14 Tattrie, J., 483 Taura, T., 526 Tay, L., 485 Taylor, Frederick Winslow, 5, 168, 169, 513 Taylor, P., 527 Taylor, S. E., 503, 504, 505 Taylor, T., 536 Teece, D. J., 547 Teerikangas, S., 549, 550 Telford, K., 511 Tellier, Paul, 329 Templer, K., 185 Ten Brinke, L., 500 Teng, B. S., 515 Tepper, B. J., 553 Terai, T., 507 Terracciano, A., 486, 509 Terry, D. J., 492, 533 Tetrick, L. E., 513 Tett, R. P., 487, 499 Tharenou, P., 481, 485 Thatcher, S. M. B., 490, 503, 522 Thelwell, C., 508 Theobald, N. A., 545 Theorell, T., 504 Théorét, A., 515 Thieme, R. J., 537 Thierry, H., 548 Thodey, David, 341–342, 344, 346–347 Thom, R., 546 Thomas, D. A., 519 Thomas, D. C., 501, 529 Thomas, D. G., 509 Thomas, E. D., 495 Thomas, G. F., 527 Thomas, H. D. C., 552 Thomas, J. L., 507
Steiner, D. D., 495 Steiner, I. D., 521 Steinfield, C., 532 Stelter, N. Z., 544 Stephen, W. G., 496 Stephens, K. K., 528 Stephenson, J., Jr., 545 Stern, L. W., 501, 537 Stern, R. N., 479 Sternberg, R. J., 499, 518, 543 Stewart, B., 549 Stewart, G. L., 514, 521, 522, 524 Stewart, T. A., 480 Stewart, Wendy, 311 Stoeber, J., 488 Stogdill, R. M., 543 Stoker, J. I., 533 Stone, J., 498 Störmer, S., 486 Storrs, C., 545 Strange, J. M., 540 Strauss, A., 478 Strauss, W., 482 Strebel, P., 553 Strickland, O. J., 514 Striukova, L., 480 Stroebe, W., 525 Strutton, D., 533, 534 Stryker, J. B., 521 Stuart, Doug, 265 Studtmann, M., 497 Stuhlmacher, A. F., 538 Su, H.-C., 551 Su, R., 485 Subramony, M., 481 Sugimoto, A., 496 Sujan, M., 506 Suls, J. M., 491 Summers, T. P., 510 Sundström, A., 491 Sundstrom, E., 512, 520, 521, 532 Sundt- Hansen, Hilde, 115 Sunil, J. R., 501 Surface, E. A., 511 Susanto, E., 536 Sussman, N. M., 529 Suter, L., 520 Sutton, Nicola, 250 Sutton, R. I., 478, 483, 484, 501, 517, 518, 519,
526, 527, 531 Svenson, O., 517 Svensson, G., 489 Svensson, O., 528 Sverdlik, N., 488 Swailes, S., 522 Swaminathan, P., 526 Swann, W. B., 492 Swann, W. B., Jr., 491, 492 Swap, W., 549 Sweeney, Petá, 442 Sweeney, P. K., 555 Sweeny, K., 494 Swift, M., 552 Swinfard, Ronald, 103 Sy, T., 495, 547 Sya, L. S., 531
Snyder, S., 515 Snyder, Steven, 188 Soderstrom, S. B., 523, 525, 532 Soelberg, P. O., 516 Sogon, S., 490 Sohn, D. W., 538 So-Hyun, K., 552 Solinger, O. N., 502 Somech, A., 521, 533 Sommer, S. M., 507 Song, M., 537 Song, X. M., 536, 537 Sonnby-Borgstrom, M., 528 Sonnenfeld, J. A., 479 Soo, C., 525 Sorensen, J. S., 549 Sorensen, K. L., 491, 492, 499, 504 Sorensen, P. F., 555 Sorenson, P. F., 556 Sorrentino, R. M., 491 Sowa, J. E., 480 Spears, R., 493, 527, 536 Spector, B., 550, 555 Spector, P. E., 492, 510, 513 Speiser, Leonard, 240 Spence, J. T., 504 Spencer, D. M., 526 Spencer, L. M., 485 Spencer, S. M., 485 Spini, D., 488 Spiros, R. K., 520 Spitzer, D., 550 Spitzer, D. R., 512 Spoor, J. R., 520 Spreitzer, G. M., 513, 549, 554, 556 Spurgeon, P., 543 Sripada, Chandrasekhar, 386–387 Srivastava, A., 511 Srivastava, S., 486 Staats, B., 492 Staats, B. R., 521 Staelin, R., 518 Stafford, P., 539 Stagner, R., 538 Stahl, G. K., 522, 550 Staiger, D. O., 486 Stairs, M., 505 Stajkovic, A. D., 525 Stalker, G., 546, 547 Stam, D., 540 Stamps, J., 524 Stapel, D. A., 498, 533 Staples, D. S., 525 Starbuck, William, 465 Staubus, M., 511, 512 Staw, B. M., 498, 517, 518 Steel, P., 490, 504 Steene, G. V., 515 Steensma, H. K., 547 Steers, R. M., 502, 505, 508, 510 Steffy, L. C., 548 Steiger, J. H., 95, 497 Stein, E. W., 528 Stein, J., 462 Stein, M. I., 518 Steinberg, J., 491
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Name Index I-21
Vanhonacker, W. R., 532 Van Iterson, A., 530 Van Kleef, G. A., 499, 530 Van Knippenberg, D., 483, 516, 522, 523, 525,
540, 541 Van Lange, P., 517 Van Lee, R., 489 Van Maanen, J., 551, 552 Van Marrewijk, M., 482 Van Mierlo, H., 524 Van Muijen, J. J., 548 Van Olffen, W., 502 Van Patten, J., 556 Van Praet, N., 480 Van Schouwen, Michelle, 22 Van Seters, D. A., 495 Van Vianen, A. E. M., 537, 551 Van Vugt, M., 520 Van Witteloostuijn, A., 519 Vardaman, J. M., 554 Vargas, J. H., 490 Varin, Philippe, 226 Vazire, S., 496 Vecchio, R. P., 542 Velasquez, M. G., 489 Venkataramani, V., 501 Venus, M., 540 Verbeke, A., 490 Verhagen, Herna, 359 Vermeulen, F., 479 Vernon, P. A., 486 Verplanken, B., 488, 506 Verquer, M. L., 488 Vertommen, H., 515 Very, P., 549, 550 Vescio, T. K., 530 Vickers, M., 480 Vignoles, V. L., 491 Vigoda, E., 534 Vigoda-Gadot, E., 485, 503 Vijayalakshmi, V., 528 Viki, G. T., 526 Villa, J. R., 542 Villano, M., 545 Viswesvaran, C., 486, 498, 505 Vohs, K. D., 507, 516 Voigt, A., 550 Von Glinow, M. A., 536, 537 Von Helmoltz, Hermann, 202 Vonk, R., 533 Vorauer, J. D., 496 Voronov, M., 490 Vorster, N., 482 Voss, A., 515 Voss, K., 525 Vredenburgh, D., 506, 507 Vreeke, G. J., 496 Vroom, V. H., 213, 484, 507–508, 519, 520, 525
W Wach, M., 507 Wageman, R., 520, 521, 522, 523, 536 Wagner, C., 530 Wagner, S. H., 481, 488, 512 Wahab, Z. A., 517
Turner, J. C., 493 Turner, J. W., 528 Turner, M. E., 493, 509, 521, 523 Turner, N., 504, 555 Turnley, W. H., 488, 501 Tushman, M. L., 371, 545, 547 Tuttle, B., 480, 515 Tversky, A., 194, 516, 538 Twenge, J. M., 483, 491, 492 Twillman, Brian, 42 Tyler, K., 540, 546 Tyrstrup, M., 542 Tyson, D. H., 529
U Uchino, B. N., 527 Uggerslev, K. L., 527, 551 Ulich, E., 524 Ulrich, D., 112, 504, 543 Ulrich, W., 504 Unerman, J., 480 Unsal, P., 544 Unsworth, K. L., 521 Unterrainer, C., 519 Urban, K. K., 518 Urwick, L., 374 Urwick. L., 479, 534, 535 Urwin, P., 483 Uskul, A. K., 501 Utt, Bill, 199 Uzzi, B., 520, 523, 525, 532
V Väänänen, A., 486 Vaill, P. B., 480 Vaish, A., 497 Vakola, M., 553 Valentine, M. A., 521 Valentine, S., 489 Van Aken, E. M., 556 Van Alphen, T., 545 Vance, Philo, 77 Vancouver, J. B., 508 Vandello, J. A., 490 Vandenberg, R. J., 526 Vandenberghe, C., 502 Van den Brink, Dolf, 129 Van den Heuvel, M., 554 Van den Hooff, B., 481, 528 Van der Mark, I. L., 496 Van der Vegt, G. S., 520, 521, 536 Van der Vliert, E., 536 Van de Ven, A. H., 480, 526, 545 Van de Vliert, E., 521 Van Dick, R., 483 Van Dierendonck, D., 541 Van-Dijk, D., 509 Van Dine, S. S., 495 Van Doorn, J. R., 540 Van Dyne, L., 501 Van Engen, M. L., 544 Van Fleet, D. D., 545 Vangen, S., 555 Van Ginkel, W. P., 516, 525
Thomas, K., 320, 536 Thomas, K. W., 339, 536 Thomas, R. J., 483, 520, 532, 544 Thompson, C. A., 504 Thompson, D., 545 Thompson, G., 542 Thompson, J. D., 483 Thompson, L., 495, 538, 539 Thompson, P., 481 Thomson, C., 522 Thomson, J., 480 Thomson, R., 480 Thurstone, L. L., 484 Tichy, N. M., 539 Tiedens, L. Z., 528 Tiegs, R. B., 513 Tien-Hsieh, A., 545 Tierney, C., 554 Timmins, Lee, 259 Tindale, S. R., 521 Tinsley, C. H., 528, 537 Tishler, A., 549 Tjosvold, D., 534 Tocquigny, R., 482 Toczek-Capelle, M.-C., 520 Todorov, A., 493 Tokatli, N., 480 Tomlinson, E. C., 484, 524 Tooby, J., 493 Torraco, R. J., 524 Tosi, H. L., 484 Tourish, D., 529 Toyoda, Akio, 381 Trachtman, R., 510 Tracy, L., 541 Trafimow, D., 498 Travaglione, T., 551 Travis, D. J., 501 Treiber, F. A., 505 Tremblay, M., 552 Tremblay, S., 522 Treur, J., 497, 498 Trevino, L. K., 508 Treviño, L. K., 489, 528 Triandis, H. C., 537 Trompenaars, F., 499 Trope, Y., 493 Tropp, L. R., 496 Trosten-Bloom, A., 443, 509, 555 Trotman, K. T., 495 Trouilloud, D. O., 495 Troyer, L., 534 Tsai, W.-C., 502 Tsalikis, J., 50, 489 Tsang, E. W. K., 494 Tseng, S.-F., 520 Tsoukas, H., 529 Tsui, A. S., 551, 552 Tucker, D. A., 526 Tuckman, B. W., 522 Tueretgen, I. O., 544 Tullberg, J., 481 Tung, R., 511 Tung, R. L., 490 Tunley, W. H., 533 Turner, G., 549
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I-22 Name Index
Wilhelm, S., 537 Wilkins, A. L., 549 Wilkinson, A., 501 Wilkinson, I., 533 Willem, A., 545 Willemsen, T. M., 544 Willer, D., 531 Williams, A., 548 Williams, B. A., 508 Williams, J. R., 509 Williams, K. D., 521 Williams, Lisa V., 458 Williams, M., 524, 530, 554 Williams, Ricardo, 4 Williams, S., 514 Willis, H., 494, 536 Willis, J., 493 Wilson, E., 511 Wilson, E. V., 528 Wilson, Jerry, 301 Wilson, J. M., 525 Wilson, J. S., 533 Wiltermuth, S. S., 495 Wimbush, J., 526 Windschitl, P. D., 493 Wingfield, N., 544–545 Winkielman, P., 497, 498, 507, 516, 528 Wirthman, L., 502 Wirtz, P. W., 542 Wirtz, R. A., 512 Wiseman, R. M., 511 Withey, M. J., 485, 501 Witsil, F., 540 Witt, A., 487 Witt, L. A., 488 Witte, E., 515 Wixom, B. H., 526 Woehr, D., 483 Wofford, J. C., 542 Wolf, J., 547 Wolf, M., 258, 482 Wolfe, Maureen, 254 Wolfe Morrison, E., 552 Wolff, C., 485 Wolter, Jakob, 275 Wong, C.-S., 121 Wong, M., 483 Wong, S., 513 Wong, V., 479 Wood, A. M., 488 Wood, D., 490 Wood, S., 522 Wood, W., 533 Wooden, M., 504 Woodman, R. W., 523 Woodruff, D., 529 Woods, P. A., 519 Woodward, A., 497 Woodworth, R. S., 506 Wooldridge, A., 479 Woolfolk, R. L., 503 Workman, J. P., Jr., 546 Wrege, C. D., 479 Wren, D. A., 545 Wright, A., 511 Wright, G., 517
Weed, J., 533 Weel, B., 545 Wegge, J., 508 Wei, L.-Q., 481 Weick, K. E., 480, 555 Weigand, R. A., 483 Weikel, D., 487 Weil, N., 525 Weinbren, E., 533 Weiner, B., 494 Weingart, L. R., 534, 535, 538 Weinstein, M., 481, 499 Weisberg, R. W., 518 Weisberg, Warren, 84 Weisbord, M., 555, 556 Weisel, O., 494 Weiss, H. M., 497, 498, 500 Weiss, L., 532 Weitzel, J. R., 542 Welbourne, T. M., 511 Welch, D., 529 Welch, J., 426, 552 Welch, L., 529 Weldon, A., 528 Weldon, E., 496, 537 Wellington, M. A., 486 Welpe, I., 481 Welsh, D. H. B., 507 Wernimont, P. F., 510 Weseman, Randy, 445 West, M. A., 479, 519, 521, 524, 534 Westergaard-Nielsen, N., 509 Westerman, J. W., 488 Weston, D., 496 Westwood, R., 479, 518, 548 Wexler, M. N., 481 Whalen, J. M., 527 Wharton, A. S., 499 Wheeler, D., 480 Wheeler, J. V., 524 Wheeler, S. C., 492 Whetten, D. A., 492 Whetzel, D. L., 487 Whipp, G., 530 White, K. M., 523, 533 White, M. V., 515 White, S. S., 495 Whiteley, P., 495 Whitener, E. M., 524 Whitfield, K., 511 Whitney, D. J., 523 Whitney, D. K., 443, 444, 509, 555 Whitworth, B., 530 Whyte, G., 517, 525 Wickham, Mitchell, 220 Wicks, A. C., 482 Wiedig-Allison, M., 487 Wiener, Y., 549 Wiesenfeld, B., 504 Wiesner, R., 546 Wiggins, S., 505 Wijen, F., 482 Wijewardena, N., 498 Wilbanks, J. E., 498 Wilderom, C. P. M., 549 Wiley, J., 483
Wahba, M. A., 506 Waisberg, D., 530 Waite, S., 540 Wakefield, T., 554 Waldman, D. A., 540 Walker, C., 520 Walker, C. J., 530 Walker, C. R., 513 Walker, Malcolm, 31 Wall, J. A., 534, 538 Wall, T. D., 513, 546 Wallace, D., 480 Wallas, G., 202, 203, 518 Walsh, J. P., 479, 520 Walsh, K., 545 Walsh, T., 529 Walter, F., 500 Walter, G. A., 556 Walters, B., 496 Walther, J. B., 527 Walton, R. E., 536, 538, 555 Walumbwa, F. O., 544 Wanberg, C. R., 552 Wang, C.-H., 481 Wang, Q., 492, 536, 537 Wang, Tony, 178 Wang, W., 531 Wang, X., 540 Wangenheim, F. v., 502 Wang Jijiang, 113 Wanous, J. P., 552 Ward, A.-K., 501 Warner, M., 479 Warrington, P. T., 529 Washburn, N. T., 494 Wasserman, S., 532 Wastell, C., 493 Waterman, R., 530 Waterman, R. H., 550 Waters, R. D., 527 Watkins, E. R., 516 Watkins, J. M., 555 Watkins, K., 555 Watkins, M., 547 Watson, J., 495 Watson, J. B., 508 Watson, R., 510 Watson-Manheim, M. B., 528 Watt, J. D., 501 Watts, L. A., 527 Waymon, L., 552 Weatherbee, T. G., 506 Weaver, K., 489 Weaver, W., 527 Webb, M., 540 Webber, S. S., 523 Weber, H., 487 Weber, Max, 5, 312 Weber, R., 543 Weber, T., 541 Weber, W., 520, 524 Weber, W. G., 519, 524 Webley, P., 510 Webster, J., 525, 528 Wedley, W. C., 515 Wee, W., 540
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Name Index I-23
Zaleznik, A., 541 Zalkind, S. S., 495 Zander, L., 544 Zanna, M. P., 494, 497 Zapf, D., 499 Zebro, David, 224 Zedeck, S., 513 Zeelenberg, M., 507 Zeidner, M., 499 Zelazo, P. D., 497 Zemke, R., 482, 549 Zerbe, W. J., 497, 498, 499, 542 Zeschuk, G., 547 Zetik, D. C., 538 Zhang, L., 492 Zhang, X., 514 Zhongtuo, W., 515 Zhou, J., 501, 518, 519 Ziegert, J. C., 516 Ziegler, C., 553 Zijlmans, L. J. M., 500 Zimbalist, K., 524 Zimmerman, R. D., 502, 551 Zingheim, P. K., 511 Zmud, R. W., 527, 528 Zollinger, Cindy, 375 Zuckerman, G., 530 Zuckerman, M., 504
Ybarra, O., 495 Yeatts, D. E., 524 Yee, R. W. Y., 502 Yemchenko, N., 537 Yeow, P., 526 Yeung, A. C. L., 502 Yik, M., 95, 497 Yoho, S. K., 515, 542 Yoo, Seung Hee, 499 Yoon, D. J., 502 You, D., 489 Young, S. M., 481 Youngreen, R., 534 Youssef, C. M., 504 Yu, C.-P., 524 Yuan, Y., 504 Yukl, G., 531, 534, 539,
541, 542 Yun Jong-yong, 205
Z Zaccaro, S. J., 521, 543 Zacharatos, A., 555 Zadek, S., 482 Zahir, S., 489 Zajonc, R. B., 497 Zald, M. N., 484, 549
Wright, P. L., 531 Wright, P. M., 480, 481, 509 Wroblewski, Tom, 324 Wrzesniewski, A., 514 Wuchty, S., 520 Wulf, J., 545 Wünderlich, N. V., 502
X Xie, J., 536, 537 Xin, K. R., 535 Xu, L., 504 Xu, Y., 536
Y Yaeger, T. F., 555 Yamada, D. C., 504 Yamada, H., 529 Yamagishi, T., 494 Yamauchi, K., 185 Yamawaki, H., 540 Yammarino, F. J., 544 Yang, H.-L., 492 Yang, J. X., 535 Yaprak, A., 550 Yarkoni, T., 487
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I-24
glossary/subject INDEX A Ability The natural aptitudes and learned capabilities required to successfully complete a task , 32, 33–34; see also Human capital
Absenteeism, 38 Achievement, need for, 129
Achievement-nurturing orientation A cross-cultural value describing the degree to which people in a culture emphasize competitive versus cooperative relations with other people , 54, 55
Achievement-oriented leadership, 352, 353
Action research A problem-focused change process that combines action orientation (changing attitudes and behavior) and research orientation (testing theory through data collection and analysis) , 440–441
Action scripts, 198 Active listening, 271–272
Adaptive culture An organizational culture in which employees are receptive to change, including the ongoing alignment of the organization to its environment and continuous improvement of internal processes , 406–407
Advanced Research Projects Agency Network (ARPANET), 257
Affective organizational commitment The employee’s emotional attachment to, involvement in, and identification with an organization , 108, 109–110
Affiliation, need for, 129 Age discrimination, 75 Agreeableness, 40, 41–42
Anchoring and adjustment heuristic A natural tendency for people to be influenced by an initial anchor point such that they do not sufficiently move away from that point as new information is provided , 194–195
Appreciative coaching; see Strengths-based coaching
Appreciative inquiry An organizational change strategy that directs the group’s attention away from its own problems and focuses participants on the group’s potential and positive elements , 441
Four-D model, 444 principles, 443 process, 441–443 use of, 444
Aptitudes, 33 Arbitration, 326 ARPANET; see Advanced Research Projects Agency Network
Artifacts The observable symbols and signs of an organization’s culture , 399, 402–403
cultural change and, 412 language, 403 physical structure and symbols, 404 rituals and ceremonies, 403–404 stories and legends, 403, 412
ASA; see Attraction-selection-attrition theory Assembly lines; see Job specialization Assertiveness, 298 Assimilation, 410 Associative play, 206
Attitudes The cluster of beliefs, assessed feelings, and behavioral intentions toward a person, object, or event (called an attitude object) , 95–99 Attraction-selection-attrition (ASA) theory A theory which states that organizations have a natural tendency to attract, select, and retain people with values and personality characteristics that are consistent with the organiza- tion’s character, resulting in a more homogeneous organization and a stronger culture , 413
Attribution errors, 77–78
Attribution process The perceptual process of deciding whether an observed behavior or event is caused largely by internal or external factors , 76–78 Authentic leadership The view that effective leaders need to be aware of, feel comfortable with, and act consistently with their values, personality, and self-concept , 359–360
Authority; see also Power centralized, 377 silent, 298
Autonomy The degree to which a job gives employees the freedom, indepen- dence, and discretion to schedule their work and determine the procedures used in completing it , 170–171, 173; see also Empowerment Availability heuristic A natural tendency to assign higher probabilities to objects or events that are easier to recall from memory, even though ease of recall is also affected by nonprobability factors (e.g., emotional response, recent events) , 195
B Baby Boomers, 19–20
Balanced scorecard (BSC) A goal-setting and reward system that trans- lates the organization’s vision and mission into specific, measurable performance goals related to financial, customer, internal, and learning/growth (i.e., human capital) processes , 141
Bargaining zone model, 328–329 BATNA; see Best alternative to a negotiated agreement Behavior; see Individual behavior Behavioral intentions, 97 Beliefs, 96, 99
Best alternative to a negotiated agreement (BATNA) The best outcome you might achieve through some other course of action if you abandon the current negotiation , 330
Biases; see Perceptual processes
Bicultural audit A process of diagnosing cultural relations between companies and determining the extent to which cultural clashes will likely occur , 409
Board members, 75, 292 Body language, 262; see also Nonverbal communication
Bounded rationality The view that people are bounded in their decision- making capabilities, including access to limited information, limited information processing, and tendency toward satisficing rather than maximizing when making choices , 193–196 Brainstorming A freewheeling, face-to-face meeting where team members aren’t allowed to criticize but are encouraged to speak freely, generate as many ideas as possible, and build on the ideas of others , 243–244 Brainwriting A variation of brainstorming that minimizes the problem of production blocking by removing conversation during idea generation , 244
Brands, personal, 291, 300–301
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Glossary/Subject Index I-25
Chief executive officers (CEOs); see also Leadership power, 292 span of control, 374 work on front lines, 84
Child care support, 115 China
guanxi , 293 overwork and stress, 113
Choices; see Decision making Circumplex models
of emotions, 94–95 of values, 46–47
Citizenship behaviors; see Organizational citizenship behaviors
Claiming value, 329–330 Client divisional structure, 381–382 Client relationships, job enrichment and, 174 Clustering illusion, 195 Coaching, strengths-based, 142–143
Coalition A group that attempts to influence people outside the group by pooling the resources and power of its members , 299
change and, 437–438 forming, 222, 299 guiding, 437–438
Coercive power, 288, 434–436 Cognition, influence, 94
Cognitive dissonance Condition that occurs when we perceive an inconsis- tency between our beliefs, feelings, and behavior , 98–99 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 , 52–53
Commissions, 161 Commitment; see Organizational commitment
Communication The process by which information is transmitted and un- derstood between two or more people , 254
barriers, 266–270 change and, 433–434, 435 conflict and, 319 cross-cultural, 268–269 cultural differences, 263 encoding-decoding factors, 256–257 functions, 254–255 gender differences, 269–270 in hierarchy, 272–274 improving, 270–274, 324–325 informal, 371–372, 374–375 process model, 255–257 social networks, 275 with top management, 273–274, 275 of visions, 345–346
Communication channels grapevine, 274–275 Internet-based; see also Social media
e-mail, 257–260 e-zines, 272–273
media richness, 263–265 motivation and ability, 256 nonverbal, 257, 261–262, 268 persuasive effects, 265–266 social acceptance, 262–263 verbal, 257, 261
Brooks’s law The principle that adding more people to a late software project only makes it later. Also called the mythical man-month , 224
BSC; see Balanced scorecard Bullying, 298, 299 Bureaucracy, 373, 376 Burnout, 111
C Capital
human, 10–11, 13 organizational, 11 relationship, 11 social, 293, 294–295 structural, 11, 12
Categorical thinking Organizing people and objects into preconceived cate- gories that are stored in our long-term memory , 72; see also Stereotyping
Categorization, 74
Centrality A contingency of power pertaining to the degree and nature of interdependence between the power holder and others , 290–291, 295–296 Centralization The degree to which formal decision authority is held by a small group of people, typically those at the top of the organizational hierarchy , 377
CEOs; see Chief executive officers
Ceremonies Planned displays of organizational culture, conducted specifically for the benefit of an audience , 404
Change adaptive cultures, 406–407 approaches
action research, 440–441 appreciative inquiry, 441–444 large group interventions, 445–446 parallel learning structures, 446
creating urgency, 431–433 cross-cultural issues, 446 cultural, 411–413 customer-driven, 431–432 diffusion, 438–440 ethical issues, 446–447 experimentation, 346–347 guiding coalitions, 437–438 leadership and, 436–437 Lewin’s force field analysis model, 426–427, 431 maintaining, 436 negative valence, 429 openness to, 46 pilot projects, 438–440 resistance
forms, 427–429 reasons, 429–431 reducing, 433–436
speed, 442 viral, 438
Change self-efficacy, 434
Charisma A personal characteristic or special “gift” that serves as a form of interpersonal attraction and referent power over others , 290
negative effects, 347–348 transformational leadership and, 347–348
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I-26 Glossary/Subject Index
Countervailing power The capacity of a person, team, or organization to keep a more powerful person or group in the exchange relationship , 285
Creating value, 328–329, 330–331
Creativity The development of original ideas that make a socially recognized contribution , 201
characteristics of creative people, 203–204 in decision making, 201 organizational conditions supporting, 205–206 process model, 202–203 in team decision making, 243–244
Cross-cultural communication, 268–269 Cross-cultural knowledge, 55 Cross-pollination, 206 CSR; see Corporate social responsibility Cultural differences
change efforts and, 446 in communication, 263 in conflict handling styles, 323
Cultural values achievement-nurturing orientation, 54 changes, 55 emotional display norms, 100 expectations of leaders, 361 individualism and collectivism, 52–53 power distance, 53–54, 159 uncertainty avoidance, 54 views of money, 159
Culture; see Organizational culture Customer-driven change, 431–432 Customer satisfaction, 106–107; see also Client relationships;
Stakeholders CWBs; see Counterproductive work behaviors Cycle time, 167
D Decentralization, 377 Decision heuristics, biased, 194–195
Decision making The conscious process of making choices among alternatives with the intention of moving toward some desired state of affairs , 188
centralization, 377 creativity in, 201 employee involvement, 206–210 evaluating outcomes, 199–201 imperfect rationality paradigm
bounded rationality, 193–196 emotional influences, 196–198 evaluating outcomes, 199–201 intuition and, 198 problem identification, 190–193
implementing decisions, 199 improving effectiveness, 198–199 rational choice paradigm
assumptions, 193–194, 195 decision-making process, 189–190 history, 188–189 problems with, 190, 196–197 subjective expected utility, 189, 194
in teams, 241–244 Deculturation, 410 Deductive process, 474 Deep acting, 101
Compensation; see also Performance-based pay; Rewards commissions, 161 fairness, 145, 146, 160 job evaluation and, 160 piece rates, 161
Competencies, 33, 388 Competency perspective of leadership
authentic leadership, 359–360 characteristics, 357–359, 361 limitations, 360–361
Confirmation bias The process by which information is transmitted and understood between two or more people , 71, 199, 201 Conflict A process in which one party perceives that his or her interests are being opposed or negatively affected by another party , 312
benefits, 313 manifest, 316 negative effects, 312–313, 314 outcomes, 316 process model, 316 relationship, 314–316, 428 sources, 316, 317–319 task, 313–314, 315–316, 428
Conflict handling styles, 319–323 Conflict management; see also Negotiation
structural approaches, 323–326 third-party resolution, 326–327
Conscientiousness A personality dimension describing people who are careful, dependable, and self-disciplined , 40, 41
Consequential principle, 49 Conservation, 46 Constructs, 474
Contact hypothesis A theory stating that the more we interact with someone, the less prejudiced or perceptually biased we will be against that person , 83, 325
Contingency anchor, 25
Continuance commitment An employee’s calculative attachment to the or- ganization, whereby an employee is motivated to stay only because leaving would be costly , 108, 109
Contracts, psychological, 415–416 Control
of information, 287–288, 298–299 locus of, 68, 353 span of, 374–376 task, 113
Cooperatives, 207 Coordination mechanisms, 371
formal hierarchy, 372–373 informal communication, 371–372, 374–375 standardization, 373, 375
Core affect, 94 Core competencies, 388 Corporate culture; see Organizational culture
Corporate social responsibility (CSR) Organizational activities intended to benefit society and the environment beyond the firm’s immediate financial interests or legal obligations , 16, 86 Counterproductive work behaviors (CWBs) Voluntary behaviors that have the potential to directly or indirectly harm the organization , 37
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Glossary/Subject Index I-27
Electronic brainstorming A form of brainstorming that relies on networked computers for submitting and sharing creative ideas , 244
E-mail, 257–260
Emotional contagion The nonconscious process of “catching” or sharing another person’s emotions by mimicking that person’s facial expressions and other nonverbal behavior , 261–262 Emotional dissonance The psychological tension experienced when the emotions people are required to display are quite different from the emotions they actually experience at that moment , 100–101 Emotional intelligence (EI) A set of abilities to perceive and express emotion, assimilate emotion in thought, understand and reason with emotion, and regulate emotion in oneself and others , 101
conflict management, 315 dimensions, 101–102 of leaders, 359 outcomes, 102–103 training, 103
Emotional labor The effort, planning, and control needed to express organi- zationally desired emotions during interpersonal transactions , 100–101
Emotional stability, 40, 41, 315
Emotions Physiological, behavioral, and psychological episodes experienced toward an object, person, or event that create a state of readiness , 95
activation, 95 affective organizational commitment, 108, 109–110 attitudes, behavior and, 95–99 cognitive dissonance, 98–99 communicating in e-mail, 258 in decision making, 196–198 as information, 197 intuition, 198 managing, 99–101, 102 money and, 158 motivation and, 125–126, 130, 131 needs, 126–130 negative, 94–95, 197, 200 personality and, 99 positive, 98 preference formation, 197 prospect theory effect, 200 types, 94–95 in workplace, 94, 98, 99–101
Empathy A person’s understanding of and sensitivity to the feelings, thoughts, and situations of others , 83, 268
Employee behavior; see Individual behavior
Employee engagement Individual’s emotional and cognitive motivation, particularly a focused, intense, persistent, and purposive effort toward work-related goals , 124
drivers, 125 levels, 125 as performance predictor, 124–125
Employee involvement The degree to which employees influence how their work is organized and carried out , 206
benefits, 208–209 in change efforts, 434, 435 contingencies, 209–210
Deep-level diversity Differences in the psychological characteristics of employees, including personalities, beliefs, values, and attitudes , 19, 55
Democracy, organizational, 206, 207 Departmentalization
divisional structure, 381–383 functional structure, 380 functions, 379 simple structure, 380
Differentiation motives, 74 reducing, 324 as source of conflict, 317–318, 325
Directive leadership, 352, 353 Discretion, 291–293 Discrimination
age, 75 gender-based, 63, 75 intentional, 75 unintentional (systemic), 75, 81
Display rules, 100 Dissatisfaction; see Job dissatisfaction Distress, 110, 111–112; see also Stress
Distributive justice Perceived fairness in the individual’s ratio of outcomes to contributions compared with another’s ratio of outcomes to contributions , 49, 144 Divergent thinking Reframing a problem in a unique way and generating different approaches to the issue , 202–203
Diversity, workforce; see also Cultural differences cross-cultural knowledge, 55 deep-level, 19 generational, 19–20, 98 increase in, 18 surface-level, 18 in teams, 230–231 in United States, 18, 55
Diversity awareness training, 81
Divisional structure An organizational structure in which employees are organized around geographic areas, outputs (products or services), or clients , 381
client, 381–382 evaluating, 383 geographic, 381–383 global integration, 383 product/service, 381–382
Division of labor, 370–371
Drives Hardwired characteristics of the brain that correct deficiencies or main- tain an internal equilibrium by producing emotions to energize individuals , 125; see also Needs
behaviors and, 126–127, 131 emotions and, 125–127, 130, 131 four-drive theory, 130–132
E EBM; see Evidence-based management Effectiveness; see Organizational effectiveness Efficacy
self-, 68, 434 team, 242–243
Efficiency; see Organizational efficiency EI; see Emotional intelligence
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I-28 Glossary/Subject Index
Exit-voice-loyalty-neglect (EVLN) model The four ways, as indicated in the name, that employees respond to job dissatisfaction , 105–106 Expectancy theory A motivation theory based on the idea that work effort is directed toward behaviors that people believe will lead to desired outcomes , 133–136
Experimentation, 346–347 Expert power, 288–289 External environment
changes, 17, 389 complexity, 389–390 globalization, 17–18, 240–241 organizational culture and, 406 organizational fit, 9–10 organizational structure and, 389–390 workforce diversity, 18–20
Extinction, 137
Extraversion A personality dimension describing people who are outgoing, talkative, sociable, and assertive , 41, 43, 114
E-zines, 272–273
F Fairness; see Justice
False consensus effect A perceptual error in which we overestimate the extent to which others have beliefs and characteristics similar to our own , 80
Families telework and, 22 work-life balance, 20–21, 113, 114–115
Feedback effective, 141–142, 436 job, 171 performance reviews, 164 self-monitoring, 178–179, 360 sources, 143–144, 172 strengths-based coaching, 142–143
Feelings, 96, 99; see also Attitudes; Emotions FFM; see Five-factor model
Fiedler’s contingency model Developed by Fred Fiedler, an early contin- gency leadership model that suggests that leader effectiveness depends on whether the person’s natural leadership style is appropriately matched to the situation , 355
Field surveys, 477–478 Financial rewards; see Compensation; Rewards “Five C’s” model, 228–229, 230
Five-factor model (FFM) of personality The five abstract dimensions representing most personality traits: conscientiousness, emotional stability, openness to experience, agreeableness, and extroversion , 40–42, 44 Force field analysis Kurt Lewin’s model of systemwide change that helps change agents diagnose the forces that drive and restrain proposed organizational change , 426–427, 431
Formal hierarchy, 372–373
Formalization The degree to which organizations standardize behavior through rules, procedures, formal training, and related mechanisms , 377–378
Founders, 411–412
Four-drive theory A motivation theory based on the innate drives to acquire, bond, learn, and defend that incorporates both emotions and rationality , 130–132
Fun at work, 98
Employee behavior—Cont. in decision making, 206–210 organizational commitment and, 110
Employee-management relations communication, 273–274, 275 conflict, 312 influence, 297
Employee ownership, 207 Employees; see also Hiring; Motivation; Individual behavior
cultural “fit,” 413 organizational socialization, 414–418 psychological contracts, 415–416 retaining, 38, 160, 412–413 work-life balance, 20–21, 113, 114–115
Employee stock ownership plans (ESOPs) A reward system that encourages employees to buy company stock , 162–163 Empowerment A psychological concept in which people experience more self-determination, meaning, competence, and impact regarding their role in the organization , 175; see also Power
effects, 179–180, 296 supporting, 175–176
Enacted values, 399–400 Encounter stage, 417 Engagement; see Employee engagement Environment; see External environment Equality, 144–145
Equity theory A theory explaining how people develop perceptions of fairness in the distribution and exchange of resources , 144–147 Escalation of commitment The tendency to repeat an apparently bad decision or allocate more resources to a failing course of action , 200, 201
ESOPs; see Employee stock ownership plans Espoused values, 399
Ethics The study of moral principles or values that determine whether actions are right or wrong and outcomes are good or bad , 16
audits, 52 change efforts and, 446–447 distributive justice, 49 importance, 48–49 individual rights, 49 job satisfaction and, 107 moral intensity, 49–50 moral sensitivity, 50–51 organizational culture and, 408 in research, 476 situational factors, 51 supporting ethical behavior, 51–52 utilitarianism, 49 values, 48–49 workplace democracy and, 207
Ethics codes, 51 Eustress, 110; see also Stress
Evaluation apprehension A decisionmaking problem that occurs when in- dividuals are reluctant to mention ideas that seem silly because they believe (often correctly) that other team members are silently evaluating them , 242 Evidence-based management (EBM) The practice of making decisions and taking actions based on research evidence , 23, 24
EVLN model; see Exit-voice-loyalty-neglect model Exchange activities, 301 Executives; see Chief executive officers; Managerial leadership
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Glossary/Subject Index I-29
Hierarchies; see also Organizational structure communication in, 272–274 formal, 372–373 removing levels, 376 span of control, 374, 375–376 tall vs. flat, 375–376
High-performance work practices (HPWP) A perspective which holds that effective organizations incorporate several workplace practices that leverage the potential of human capital , 13–14
Hiring cultural “fit,” 413–414 difficulties, 37 discrimination, 75 information exchanged, 416–417 interviews, 262, 417 personality tests, 38–39, 44 realistic job previews, 417–418
Homogenization, 74 HPWP; see High-performance work practices
Human capital The stock of knowledge, skills, and abilities among employees that provide economic value to the organization , 10–11, 13
Human relations school, 5–6 Hygiene factors, 169 Hypotheses, 474
I IAT; see Implicit Association Test Identity
personal, 68 social, 69, 74 task, 170 team, 232
Illumination, 203 Imagination, independent, 204 Imperfect rationality paradigm
bounded rationality, 193–196 emotional influences, 196–198 evaluating outcomes, 199–201 intuition and, 198 problem identification, 190–193
Implicit Association Test (IAT), 82
Implicit favorite A preferred alternative that the decision maker uses repeat- edly as a comparison with other choices , 194 Implicit leadership theory A theory stating that people evaluate a leader’s effectiveness in terms of how well that person fits preconceived beliefs about the features and behaviors of effective leaders (leadership prototypes) and that people tend to inflate the influence of leaders on organizational events , 356
prototypes, 356 romance, 356–357
Impression management The practice of actively shaping our public images , 300–301, 417
Individual behavior attendance, 38 counterproductive, 37 drives and, 126–127, 131 emotions and, 95–99 job satisfaction and, 105–106
Functional structure An organizational structure in which employees are organized around specific knowledge or other resources , 380 Fundamental attribution error The tendency to see the person rather than the situation as the main cause of that person’s behavior , 78, 164
G Gainsharing plans A team-based reward that calculates bonuses from the work unit’s cost savings and productivity improvement , 162
Gamification, 138 Gender differences; see also Women
communication, 269–270 conflict handling styles, 323 leadership styles, 362 social media, 269–270 views of money, 158–159
General adaptation syndrome A model of the stress experience, consisting of three stages: alarm reaction, resistance, and exhaustion , 110–111
Generational cohorts, 19–20, 98 Generational differences, 311, 318 Generation-X, 19–20 Generation-Y, 19–20 Geographic divisional structure, 381–383 GIE; see Globally integrated enterprise
Globalization Economic, social, and cultural connectivity with people in other parts of the world , 17–18, 240–241 Globally integrated enterprise (GIE) An organizational structure in which work processes and executive functions are distributed around the world through global centers, rather than developed in a home country and replicated in satellite countries or regions , 383 Global mindset An individual’s ability to perceive, appreciate, and empa- thize with people from other cultures, and to process complex cross-cultural information , 84–86
Goals clarity, 193 incompatible, 317 superordinate, 323–324
Goal setting The process of motivating employees and clarifying their role perceptions by establishing performance objectives , 140
balanced scorecard, 141 evaluating, 144 in negotiations, 329 personal, 177 SMARTER characteristics, 140–141
Grapevine An unstructured and informal communication network founded on social relationships rather than organizational charts or job descriptions , 274–275
Grounded theory, 475 Groups; see also Coalitions; Teams
informal, 222, 299 large, 445–446
Guiding coalitions, 437–438
H 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 , 79–80, 164
Harassment psychological, 112 sexual, 112
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I-30 Glossary/Subject Index
J Job burnout, 111
Job characteristics model A job design model that relates the motivational properties of jobs to specific personal and organizational consequences of those properties , 169
core characteristics, 170–171 individual differences, 171–172 predictability, 172 psychological states, 169, 170, 171 social characteristics, 172
Job design The process of assigning tasks to a job, including the interdepen- dency of those tasks with other jobs , 167
empowerment and, 175 motivation and
job characteristics model, 169–172 job enlargement, 173, 174 job enrichment, 173–174 job rotation, 172–173
specialization, 167–169 Job dissatisfaction, exit-voice-loyalty-neglect
model, 105–106
Job enlargement The practice of adding more tasks to an existing job , 173, 174 Job enrichment The practice of giving employees more responsibility for scheduling, coordinating, and planning their own work , 173–174 Job evaluation Systematically rating the worth of jobs within an organiza- tion by measuring their required skill, effort, responsibility, and working conditions , 160
Job rotation, 172–173 Jobs, defined, 167
Job satisfaction A person’s evaluation of his or her job and work context , 103
customer satisfaction and, 106–107 ethics and, 107 job characteristics model, 169–172 motivator-hygiene theory, 169 performance and, 106 surveys, 103–104 work behavior and, 105–106
Job sharing, 115
Job specialization The result of division of labor in which work is subdivided into separate jobs assigned to different people , 167
division of labor and, 370–371 history, 167–168 problems, 167, 168–169 scientific management, 168
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 , 82–83, 324–325
Justice distributive, 49, 144 equity theory, 144–147 organizational commitment and, 109 procedural, 144, 147–148
Individual behavior—Cont. joining and staying with company, 37–38 MARS model, 32–35 organizational citizenship, 36–37, 41 personality and, 41–42 presenteeism, 38 social cognitive theory, 138–139 task performance, 35–36 values and, 47
Individualism A cross-cultural value describing the degree to which people in a culture emphasize independence and personal uniqueness , 52–53
Individual rights, 49 Inequity; see Equity theory
Influence Any behavior that attempts to alter someone’s attitudes or behavior , 296; see also Power
consequences, 301–302 contingencies, 302 by employees, 297 organizational politics and, 303 in organizations, 297 tactics, 298–302
Informal communication, 371–372, 374–375 Informal groups, 222, 299 Information, control of, 287–288, 298–299
Information overload A condition in which the volume of information re- ceived exceeds the person’s capacity to process it , 260, 267
Information processing capacities, 267 emotional influences, 197 problems with, 193–195
Inoculation effect A persuasive communication strategy of warning listeners that others will try to influence them in the future and that they should be wary about the opponent’s arguments , 300
Inquisition, 326, 327 Insight, 203 Integration, cultural, 410 Integrator roles, 372
Intellectual capital A company’s stock of knowledge, including human capi- tal, structural capital, and relationship capital , 10–11
Intelligence; see also Emotional intelligence creativity and, 203 of leaders, 359 practical, 203
Interdependence; see Task interdependence Internal subsystem effectiveness, 10 Internet; see also Social media
development, 257 e-mail, 257–260 e-zines, 272–273 games, 138
Interpretivism, 473–474 Interviews
body language, 262 impression management, 417
Introversion, 41, 43
Intuition The ability to know when a problem or opportunity exists and to se- lect the best course of action without conscious reasoning , 198
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Glossary/Subject Index I-31
Learning organizational, 10–13, 240–241 organizational change and, 434 organizational socialization, 415 parallel structures, 446
Learning orientation, 175, 205
Legitimate power An agreement among organizational members that people in certain roles can request certain behaviors of others , 286–288
Lewin’s force field analysis model, 426–427, 431 Liaison roles, 372 Listening, active, 271–272
Locus of control A person’s general belief about the amount of control he or she has over personal life events , 68, 353
Loyalty; see also Organizational commitment affective commitment and, 108 bonuses, 160 job dissatisfaction and, 105
M Machiavellian values The beliefs that deceit is a natural and acceptable way to influence others and that getting more than one deserves is acceptable , 304 Management by walking around (MBWA) A communication practice in which executives get out of their offices and learn from others in the organiza- tion through face-to-face dialogue , 274 Managerial leadership A leadership perspective stating that effective leaders help employees improve their performance and well-being in the current situation , 348
change and, 435–436 communication, 273–274, 275 employee perceptions, 354 Fiedler’s contingency model, 355 path-goal leadership, 351–354 people-oriented, 350 power and, 355 servant leadership, 350–351 situational, 354 substitutes, 355–356 task-oriented, 350 transformational leadership and, 348–349
MARS model of individual behavior and performance, 32–35
Maslow’s needs hierarchy theory A motivation theory of needs arranged in a hierarchy, whereby people are motivated to fulfill a higher need as a lower one becomes gratified , 127–128 Matrix structure An organizational structure that overlays two structures (such as a geographic divisional and a functional structure) in order to leverage the benefits of both , 385–387
MBTI; see Myers-Briggs Type Indicator MBWA; see Management by walking around Meaningful interaction, 83–84, 325
Mechanistic structure An organizational structure with a narrow span of control and a high degree of formalization and centralization , 378–379 Media richness A medium’s data-carrying capacity, that is, the volume and variety of information that can be transmitted during a specific time , 263–265
Mediation, 326, 327 Memory, organizational, 12
K Knowledge; see also Human capital
acquisition, 11 creativity and, 203–204 of leaders, 358 as resource, 10–11 sharing, 11–12 storage, 12 trust based on, 237 use, 12
L Laboratory experiments, 476–477 Language; see also Communication
ambiguity, 266 differences, 268 jargon, 266 organizational, 403
Large group interventions Highly participative events that view organiza- tions as open systems (i.e., involve as many employees and other stakeholders as possible) and adopt a future and positive focus of change , 445–446 Leadership Influencing, motivating, and enabling others to contribute toward the effectiveness and success of the organizations of which they are members , 342
achievement-oriented, 352, 353 authentic, 359–360 charisma, 290, 347 competency perspective, 357–361 cultural change and, 411–412 cultural differences and, 361 decisive, 191 directive, 352, 353 gender and, 362 implicit, 356–357 managerial
definition, 348 employee perceptions, 354 Fiedler’s contingency model, 355 path-goal leadership, 351–354 people-oriented, 350 power and, 355 servant leadership, 350–351 situational, 354 substitutes, 355–356 task-oriented, 350 transformational leadership and, 348–349
participative, 352, 353 path-goal, 351–354 people-oriented, 350, 354 power and, 358 self-, 176–180 servant, 350–351 shared, 342–343 situational, 354 supportive, 352, 353 task-oriented, 350, 354 transformational, 344–348, 436–437
Leadership prototypes, 356
Leadership substitutes A theory identifying contingencies that either limit a leader’s ability to influence subordinates or make a particular leadership style unnecessary , 355–356
Learned capabilities, 33 Learned needs theory, 128–130
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I-32 Glossary/Subject Index
Multisource (360-degree) feedback Information about an employee’s performance collected from a full circle of people, including subordinates, peers, supervisors, and customers , 143, 164 Myers-Briggs Type Indicator (MBTI) An instrument designed to measure the elements of Jungian personality theory, particularly preferences regarding perceiving and judging information , 42–43, 44
N nAch; see Need for achievement nAff; see Need for affiliation Natural rewards, 178 Nature versus nurture, 39
Need for achievement (nAch) A learned need in which people want to accomplish reasonably challenging goals and desire unambiguous feedback and recognition for their success , 129, 130 Need for affiliation (nAff) A learned need in which people seek approval from others, conform to their wishes and expectations, and avoid conflict and confrontation , 129 Need for power (nPow) A learned need in which people want to control environment, including people and material resources, to benefit either themselves (personalized power) or others (socialized power) , 129–130 Needs Goal-directed forces that people experience , 126; see also Drives
individual differences, 126–127 learned, 128–130
Needs hierarchy models, 127–128
Negotiation The process whereby two or more conflicting parties attempt to resolve their divergent goals by redefining the terms of their interdependence , 327
bargaining zone model, 328–329 in change efforts, 434 claiming value, 329–330 creating value, 328–329, 330–331 situational influences, 331–332
Networks, social; see Social networks
Network structure An alliance of several organizations for the purpose of creating a product or serving a client , 387–389 Neuroticism A personality dimension describing people with high levels of anxiety, hostility, depression, and self-consciousness , 40, 41
Noise, 266–267
Nominal group technique A variation of brainstorming consisting of three stages: Participants (1) silently and independently document their ideas, (2) collectively describe these ideas to the other team members without critique, and then (3) silently and independently evaluate the ideas presented , 244
Nonverbal communication body language, 262 cultural differences, 268 defined, 257 emotional contagion, 261–262
Norm of reciprocity A felt obligation and social expectation of helping or otherwise giving something of value to someone who has already helped or given something of value to you , 287, 301 Norms The informal rules and shared expectations that groups establish to regulate the behavior of their members , 234
emotional display, 100 team, 234, 242, 316, 430
nPow; see Need for power
Mental imagery The process of mentally practicing a task and visualizing its successful completion , 178 Mental models Visual or relational images in our mind representing the ex- ternal world , 72–73
intuition, 198 missed opportunities, 192 shared, 232, 256–257
Mergers conflicts in, 318 organizational cultures, 408–411
Micromanagement, 372 Middle management
functions, 376 removing layers, 376
Millennials, 19–20
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 , 50–51
Minority groups, 18; see also Diversity, workforce Money, 158–159; see also Compensation; Rewards Moods, 94
Moral intensity The degree to which an issue demands the application of ethical principles , 49–50 Moral sensitivity A person’s ability to recognize the presence of an ethical issue and determine its relative importance , 50–51
Morphological analysis, 206
Motivation The forces within a person that affect his or her direction, intensity, and persistence of voluntary behavior , 33, 124; see also Employee engagement; Needs; Rewards
creativity and, 205 drives, 125–127, 130–132 empowerment effects, 175 feedback and, 141–144 goal setting, 139–141, 144 individual behavior and performance and, 32, 33 inequity perceptions and, 146–147 job design and
job characteristics model, 169–172 job enlargement, 173, 174 job enrichment, 173–174 job rotation, 172–173
of leaders, 358 procedural justice and, 148 self-leadership, 176–180 of teams, 223 theories
equity theory, 144–147 expectancy theory, 133–136 four-drive theory, 130–132 learned needs theory, 128–130 needs hierarchy models, 127–128 organizational behavior modification, 136–138 social cognitive theory, 138–139
training programs, 130
Motivator-hygiene theory Herzberg’s theory stating that employees are primarily motivated by growth and esteem needs, not by lower-level needs , 169
Multidisciplinary anchor, 24–25 Multiple levels of analysis, 25
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Glossary/Subject Index I-33
elements espoused and enacted values, 399–400 shared assumptions, 398, 399 shared values, 398, 399
ethics and, 408 hiring and, 413–414 learning orientation, 175, 205 merging, 408–411 socialization
functions, 414–415 improving, 417–418 psychological contracts, 415–416 stages, 416–417
strength, 406 subcultures, 401–402, 406 use of term, 407
Organizational effectiveness A broad concept represented by several per- spectives, including the organization’s fit with the external environment, internal subsystems configuration for high performance, emphasis on organizational learn- ing, and ability to satisfy the needs of key stakeholders , 7
culture and, 404–407 organizational behavior and, 16–17 perspectives, 7–8
high-performance work practices, 13–14, 17
open systems, 8–10, 16 organizational learning, 10–13, 17 stakeholder, 14–16, 17
Organizational efficiency The amount of outputs relative to inputs in the organization’s transformation process , 10
specialization and, 167–169
Organizational learning A perspective which holds that organizational effectiveness depends on the organization’s capacity to acquire, share, use, and store valuable knowledge , 10; see also Learning
intellectual capital, 10–11 processes, 11–12 unlearning, 12–13 virtual teams and, 240–241
Organizational memory, 12
Organizational politics Behaviors that others perceive as self-serving tactics at the expense of other people and possibly the organization , 303
factors in, 303–304 Machiavellian values and, 304 perceptions, 303
Organizational size, 16–17
Organizational socialization The process by which individuals learn the values, expected behaviors, and social knowledge necessary to assume their roles in the organization , 414
functions, 414–415 improving, 417–418 process, 415 psychological contracts, 415–416 stages
encounter, 417 pre-employment, 416–417 role management, 417
O OB; see Organizational behavior OB Mod; see Organizational behavior modification Observational research, 478 OCBs; see Organizational citizenship behaviors Offices, redesigning, 272 Openness to change, 46 Openness to experience, 40, 41, 204
Open systems A perspective which 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 , 8–10, 16
Opportunities evaluating, 196 identifying, 189, 190 missed, 192
Organic structure An organizational structure with a wide span of control, little formalization, and decentralized decision making , 378–379 Organizational behavior (OB) The study of what people think, feel, and do in and around organizations , 4
anchors of knowledge, 22–25 historical foundations, 5–6 organizational effectiveness and, 16–17 positive, 79 reasons for studying, 6–7 self-concept and, 69–70
Organizational behavior modification (OB Mod) A theory that ex- plains employee behavior in terms of the antecedent conditions and consequences of that behavior , 136–138
Organizational behavior research; see Research Organizational capital, 11 Organizational change; see Change Organizational charts; see Organizational structure
Organizational citizenship behaviors (OCBs) Various forms of cooper- ation and helpfulness to others that support the organization’s social and psycho- logical context , 36–37, 41 Organizational (affective) commitment The employee’s emotional attachment to, identification with, and involvement in a particular organization , 108
building, 109–110 continuance, 108, 109
Organizational comprehension, 109
Organizational culture The values and assumptions shared within an orga- nization , 398
adaptive, 406–407 artifacts, 399, 402–403
cultural change and, 412 language, 403 physical structure and symbols, 404 rituals and ceremonies, 403–404 stories and legends, 403, 412
changing, 411–413 dimensions and characteristics,
400–401 effectiveness and
contingencies, 406–407 importance, 404–405
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I-34 Glossary/Subject Index
Performance; see also Feedback employee engagement and, 124–125 empowerment effects, 175 goal setting, 139–141, 144 job satisfaction and, 106 MARS model, 32–35 organizational commitment and, 109 rewards and, 159 self-concept and, 66 values and, 47
Performance-based pay competencies, 161 criticism, 163 effectiveness, 163–165 fairness, 145 global differences, 162 individual, 161 organizational, 162–163 team, 161–162, 165 unintended consequences, 165, 166
Performance reviews, 164 Persistence, 203 Personal brands, 291, 300–301 Personal goal setting, 177 Personal identity, 68
Personality The relatively enduring pattern of thoughts, emotions, and behav- iors that characterize a person, along with the psychological processes behind those characteristics , 39
behaviors and, 38, 39, 41–42 determinants, 39 emotions and, 99 five-factor model, 40–42, 44 Myers-Briggs Type Indicator, 42–43, 44 self-leadership predictors, 179 stress and, 114, 115–116
Personality tests, 38–39, 44 Personality traits
creativity and, 204 defined, 39 five-factor model, 40–42 of leaders, 357, 358, 361 Myers-Briggs Type Indicator, 42–43, 44 values and, 45
Personal leave, 115
Persuasion The use of facts, logical arguments, and emotional appeals to change another person’s beliefs and attitudes, usually for the purpose of changing the person’s behavior , 265
communication channels and, 265–266 as influence tactic, 299–300
Piece rates, 161 Pilot projects, 438–440 Play, creativity and, 206 Politics; see Organizational politics
Positive organizational behavior A perspective of organizational behavior that focuses on building positive qualities and traits within individu- als or institutions as opposed to focusing on what is wrong with them , 79, 441–444
Positive self-talk, 177 Positivism, 473–474 Post-decisional justification, 199
Organizational strategy The way the organization positions itself in its setting in relation to its stakeholders, given the organization’s resources, capabilities, and mission , 391 Organizational structure The division of labor as well as the patterns of coordination, communication, workflow, and formal power that direct organiza- tional activities , 370
centralization, 377 contingencies
external environment, 389–390 organizational size, 390 strategy, 391 technology, 391
coordination, 371–373 departmentalization, 379–383 division of labor, 370–371 formalization, 377–378 global integration, 383 hierarchical, 272–274, 372–373, 374, 375–376 matrix, 385–387 mechanistic, 378–379 network, 387–389 organic, 378–379 span of control, 374–376 team-based, 384
Organizational values, 45, 47–49, 398; see also Values Organization-environment fit, 9–10
Organizations Groups of people who work interdependently toward some purpose , 4–5
Outsourcing, 387–389, 415
P Parallel learning structure A highly participative arrangement composed of people from most levels of the organization who follow the action research model to produce meaningful organizational change , 446
Participative leadership, 352, 353 Participative management; see Employee involvement
Path-goal leadership theory A contingency theory of leadership based on the expectancy theory of motivation that relates several leadership styles to specific employee and situational contingencies , 351
contingencies, 353 evaluating, 353–354 styles, 352
People-oriented leadership, 350, 354
Perception The process of receiving information about and making sense of the world around us , 71; see also Perceptual processes
improving, 81–83 process, 70–71
Perceptual defense, 191–192 Perceptual grouping, 72–73 Perceptual processes; see also Perception
attribution, 76–78, 164 communication and, 266 false consensus effect, 80 halo effect, 79–80, 164 in performance reviews, 164 primacy effect, 80, 164 recency effect, 80–81, 164 self-fulfilling prophecy, 78–79, 81 stereotyping, 73–75, 81, 164, 195
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Glossary/Subject Index I-35
Psychological harassment Repeated and hostile or unwanted conduct, verbal comments, actions, or gestures that affect an employee’s dignity or psycholog- ical or physical integrity and that result in a harmful work environment for the employee , 112
Punishment, 137
R Rational choice paradigm The view in decision making that people should—and typically do—use logic and all available information to choose the alternative with the highest value , 188
assumptions, 195 decision-making process, 189–190 history, 188–189 problems with, 190, 196–197 subjective expected utility, 189, 194
Realistic job preview (RJP) A method of improving organizational social- ization in which job applicants are given a balance of positive and negative information about the job and work context , 417–418 Reality shock The stress that results when employees perceive discrepancies between their preemployment expectations and on-the-job reality , 417 Recency effect A perceptual error in which the most recent information dominates our perception of others , 80–81, 164
Reciprocity, 287, 301
Referent power The capacity to influence others on the basis of an identifica- tion with and respect for the power holder , 289–290 Refreezing The latter part of the change process, in which systems and conditions are introduced that reinforce and maintain the desired behaviors , 427, 436
Reinforcement continuous, 137 negative, 137 positive, 137, 138 schedules, 137 self-, 139
Relationship capital The value derived from an organization’s relationships with customers, suppliers, and others , 11 Relationship conflict A type of conflict in which people focus on characteristics of other individuals, rather than on the issues, as the source of conflict , 314–316, 428 Representativeness heuristic A natural tendency to evaluate probabilities of events or objects by the degree to which they resemble (are representative of ) other events or objects rather than on objective probability information , 195
Representative sampling, 475 Research
approaches, 473–474 causation, 475–476 designs, 476–478 ethics, 476 field surveys, 477–478 hypotheses, 474 issues, 475–476 laboratory experiments, 476–477 observational, 478 sampling, 475 scientific method, 474 systematic, 23–24 theory building, 473 theory testing, 473, 474
Power The capacity of a person, team, or organization to influence others , 284; see also Empowerment; Influence
consequences, 296 contingencies, 285–286
centrality, 290–291, 295–296 discretion, 291–293 substitutability, 290 visibility, 291
countervailing, 285 dependence model, 284–285 of leaders, 355, 358 need for, 129–130 socialized, 358 social networks and, 293–296 sources, 285–286
coercion, 288 expertise, 288–289 legitimacy, 286–288 referent, 289–290 reward, 288
Power distance A cross-cultural value describing the degree to which people in a culture accept unequal distribution of power in a society , 53–54, 159
Practical intelligence, 203 Predictability, 172 Pre-employment socialization, 416–417 Prejudice, 75
Presenteeism Attending scheduled work when one’s capacity to perform is significantly diminished by illness or other factors , 38 Primacy effect A perceptual error in which we quickly form an opinion of people based on the first information we receive about them , 80, 164
Primary needs; see Drives; Needs Problems
creative solutions, 205–206 identifying, 189, 190–193 solution-focused, 191
Procedural justice Perceived fairness of the procedures used to decide the distribution of resources , 144, 147–148 Process losses Resources (including time and energy) expended toward team development and maintenance rather than the task , 224 Production blocking A time constraint in team decision making due to the procedural requirement that only one person may speak at a time , 242, 243
Productivity; see Organizational efficiency; Performance Product/service divisional structure, 381–382
Profit-sharing plan A reward system that pays bonuses to employees on the basis of the previous year’s level of corporate profits. , 163
Programmed decisions, 189 Project GLOBE (Global Leadership and Organizational Behavior
Effectiveness), 361
Prospect theory effect A natural tendency to feel more dissatisfaction from losing a particular amount than satisfaction from gaining an equal amount , 200
Prototypes, leadership, 356
Psychological contract The individual’s beliefs about the terms and condi- tions of a reciprocal exchange agreement between that person and another party (typically an employer) , 415–416
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I-36 Glossary/Subject Index
Selective attention The process of attending to some information received by our senses and ignoring other information , 71
Self-awareness, 82–83, 102
Self-concept An individual’s self-beliefs and self-evaluations , 64
clarity, 65 complexity, 64 consistency, 64–65 development, 39 influence, 65–66 internal, 68 of leaders, 357–358, 359–360 organizational behavior and, 69–70 positive, 74 processes, 66–68
Self-directed teams (SDTs) Crossfunctional work groups that are orga- nized around work processes, complete an entire piece of work requiring several interdependent tasks, and have substantial autonomy over the execution of those tasks , 238; see also Teams
coordination, 374–375 description, 221 organizational structure, 384 popularity, 238 success factors, 239
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 , 68, 434 Self-enhancement A person’s inherent motivation to have a positive self-concept (and to have others perceive him/her favorably), such as being competent, attractive, lucky, ethical, and important , 67
commitment escalation and, 200 effects, 66–67 motives, 74 values, 46–47
Self-esteem, 67–68 Self-evaluation, 67–68
Self-fulfilling prophecy The perceptual process in which our expectations about another person cause that person to act more consistently with those expectations , 78–79, 81
Self-justification effect, 200
Self-leadership The process of influencing oneself to establish the self-direction and self-motivation needed to perform a task , 176
effectiveness, 179 importance, 176, 180 personality traits and, 179 strategies, 177–179 work environment and, 179–180
Self-monitoring, 178–179, 360
Self-reinforcement Reinforcement that occurs when an employee has control over a reinforcer but doesn’t “take” it until completing a self-set goal , 139, 179 Self-serving bias The tendency to attribute our favorable outcomes to inter- nal factors and our failures to external factors , 77–78 Self-talk The process of talking to ourselves about our own thoughts or actions , 177
Self-transcendence, 47
Resistance to change forms, 427–429 reasons, 429–431 reducing, 433–436
Retention importance, 38 organizational culture and, 412–413 seniority-based rewards, 160
Reward power, 288 Rewards
cultural consistency, 412 effectiveness, 163–165 financial
competency-based, 161 job status-based, 160–161 meanings, 158–159 membership-based, 160 objectives, 159–163 seniority-based, 160
natural, 178 nonfinancial, 165–166 organizational change and, 436 performance-based
competencies, 161 criticism, 163 effectiveness, 163–165 fairness, 145 global differences, 162 individual, 161 organizational, 162–163 team, 161–162, 165 unintended consequences, 165, 166
performance effects, 159 team, 161–162, 165
Rights, 49
Rituals The programmed routines of daily organizational life that dramatize the organization’s culture , 403–404
RJP; see Realistic job preview
Role A set of behaviors that people are expected to perform because of the positions they hold in a team and organization , 233
Role management, 417
Role perceptions The extent to which a person accurately understands the job duties (roles) assigned to or expected of him or her , 32, 34–35
Romance of leadership, 356–357
S Sampling, 475 Satisfaction; see Customer satisfaction; Job satisfaction; Subjective expected
utility
Satisficing Selecting an alternative that is satisfactory or “good enough,” rather than the alternative with the highest value (maximization) , 195–196 Scenario planning A systematic process of thinking about alternative futures and what the organization should do to anticipate and react to those environ- ments , 199 Scientific management The practice of systematically partitioning work into its smallest elements and standardizing tasks to achieve maximum efficiency , 168
Scientific method, 474 SDTs; see Self-directed teams
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Glossary/Subject Index I-37
Social networks Social structures of individuals or social units that are connected to each other through one or more forms of interdependence , 293
centrality, 295–296 change and, 438 communication through, 275 dark side, 296 power and, 293–296 strong and weak ties, 294–295 structural holes, 296
Social responsibility; see Corporate social responsibility Social self, 68–69 Social support, 116
Span of control The number of people directly reporting to the next level in the hierarchy , 374–376
Specialization; see Job specialization
Stakeholders Individuals, organizations, or other entities that affect, or are affected by, the organization’s objectives and actions , 14
framing, 191 prioritizing, 14–15, 106 relations with, 14–15
Standardization, 373, 375, 377–378 Status, rewards and, 160–161
Stereotyping The process of assigning traits to people based on their member- ship in a social category , 73
in performance reviews, 164 problems with, 74–75 process, 73–74 reducing, 81 representativeness heuristic, 195
Stock; see Employee stock ownership plans
Stock options A reward system that gives employees the right to purchase company stock at a future date at a predetermined price , 163
Strategic visions; see Visions Strategy; see Organizational strategy
Strengths-based coaching A positive organizational behavior approach to coaching and feedback that focuses on building and leveraging the employee’s strengths rather than trying to correct his or her weaknesses , 142–143 Stress An adaptive response to a situation that is perceived as challenging or threatening to the person’s well-being , 110
causes, 112–113 change efforts and, 434 consequences, 111–112 coping strategies, 114 emotional dissonance and, 100 general adaptation syndrome, 110–111 individual differences, 114, 115–116 managing, 114–116 work-related, 110, 112–116
Stressors Any environmental condition that places a physical or emotional demand on the person , 112
removing, 114–115 types, 112–113 withdrawing from, 115
Self-verification A person’s inherent motivation to confirm and maintain his/ her existing self-concept , 67
Separation strategy, 410–411
Servant leadership The view that leaders serve followers, rather than vice versa; leaders help employees fulfill their needs and are coaches, stewards, and facilitators of employee development , 350–351 Service profit chain model A theory explaining how employees’ job satisfaction influences company profitability indirectly through service quality, customer loyalty, and related factors , 107
SEU; see Subjective expected utility Sexual harassment, 112
Shared leadership The view that leadership is broadly distributed, rather than assigned to one person, such that people within the team and organization lead each other , 342–343
Shared mental models, 232, 256–257 Shared values, 15, 45, 52, 109 Silence, 268, 269 Situational factors
ethical behavior and, 51 individual behavior and performance and, 32, 35, 38
Situational leadership theory (SLT) A commercially popular but poorly supported leadership model stating that effective leaders vary their style (telling, selling, participating, delegating) with the “readiness” of followers , 354
Skill-based pay, 161 Skills, standardized, 373, 375; see also Human capital
Skill variety The extent to which employees must use different skills and talents to perform tasks within their jobs , 170
SLT; see Situational leadership theory Social acceptance, 262–263
Social capital The knowledge and other resources available to people or social units (teams, organizations) from a durable network that connects them to others , 293, 294–295 Social cognitive theory A theory that explains how learning and motiva- tion occur by observing and modeling others as well as by anticipating the conse- quences of our behavior , 138–139
Social identities, 69, 74
Social identity theory A theory stating that people define themselves by the groups to which they belong or have an emotional attachment , 69, 74
Socialization; see Organizational socialization Socialization agents, 418 Socialized power, 358
Social loafing The problem that occurs when people exert less effort (and usually perform at a lower level) when working in teams than when working alone , 224
Social media functions, 260–261 gender differences, 269–270 informal communication through, 274–275 for internal communications, 253–254, 259, 260 motivational, 138
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I-38 Glossary/Subject Index
Team efficacy The collective belief among team members of the team’s capa- bility to successfully complete a task , 242–243 Teams Groups of two or more people who interact and influence each other, are mutually accountable for achieving common goals associated with organizational objectives, and perceive themselves as a social entity within an organization , 220
advantages, 223 challenges, 224 characteristics, 220–222 composition, 228–231 conflicts in, 315–316 cross-functional, 372, 384 decision making, 241–244 development stages, 231–234 effectiveness model
organizational and team environment, 225–226
team design, 226–231 team processes, 231–238
high-performance, 231–232 identities, 232 leadership styles and, 353 motivation and, 223 norms, 234, 242, 316, 430 rewards, 161–162, 165 roles, 233 self-directed, 221, 238, 239, 374–375, 384 sizes, 228, 235 task characteristics, 226–227 trend toward, 220 trust, 237–238, 240 types, 220–222 virtual, 221, 239–241
Technology; see also Internet electronic brainstorming, 244 organizational structure and, 391 virtual teams and, 240, 241 virtual work, 21–22
Telework, 21–22, 115 Theory
building, 473 defined, 473 grounded, 475 testing, 473, 474
Third-party conflict resolution Any attempt by a relatively neutral person to help conflicting parties resolve their differences , 326–327
360-degree feedback, 143, 164 Training
achievement motivation, 130 diversity awareness, 81 emotional intelligence, 103
Transformational leadership A leadership perspective that explains how leaders change teams or organizations by creating, communicating, and modeling a vision for the organization or work unit and inspiring employees to strive for that vision , 344
change and, 436–437 charisma and, 347–348 managerial leadership and,
348–349 strategic visions, 349 visions, 344–347
Structural capital Knowledge embedded in an organization’s systems and structures , 11, 12 Structural hole An area between two or more dense social network areas that lacks network ties , 296
Subcultures, 401–402, 406
Subjective expected utility (SEU) The probability (expectation) of satisfaction (utility) resulting from choosing a specific alternative in a decision , 189, 194 Substitutability A contingency of power pertaining to the availability of alternatives , 290
Sunk costs effect, 200–201
Superordinate goals Goals that the conflicting parties value and whose attainment requires the joint resources and effort of those parties , 323–324
Supportive leadership, 352, 353
Surface-level diversity The observable demographic or physiological differences in people, such as their race, ethnicity, gender, age, and physical disabilities , 18
Surveys, field, 477–478 Systematic research, 23–24 Systems; see Open systems
T Task analyzability, 172 Task complexity, 226–227
Task conflict A type of conflict in which people focus their discussion around the issue while showing respect for people with other points of view , 313–314, 315–316, 428
Task control, low, 113
Task identity The degree to which a job requires completion of a whole or an identifiable piece of work , 170 Task interdependence The extent to which team members must share materials, information, or expertise in order to perform their jobs , 227
conflict and, 318–319 reducing, 325 social interactions, 172
Task-oriented leadership, 350, 354 Task performance, 35–36
Task significance The degree to which a job has a substantial impact on the organization and/or larger society , 170
Task variability, 172
Team-based organizational structure An organizational structure built around self-directed teams that complete an entire piece of work , 384 Team building A process that consists of formal activities intended to improve the development and functioning of a work team , 233–234 Team cohesion The degree of attraction people feel toward the team and their motivation to remain members , 234
conflict and, 315 conformity and, 242 developing, 231 influences on, 235 performance effects, 236 as substitute for leadership, 353
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Glossary/Subject Index I-39
success factors, 241 trend toward, 239–241
Virtual work Work performed away from the traditional physical workplace by using information technology , 21–22
Visibility, 291 Visions
change and, 436–437 commitment, 347 communicating, 345–346 importance, 349 modeling, 346 strategic, 344–346, 437
W Wages; see Compensation; Financial rewards Well-being, self-concept and, 65–66 Wikis, 260, 261, 273
Win-lose orientation The belief that conflicting parties are drawing from a fixed pie, so the more one party receives, the less the other party will receive , 320 Win-win orientation The belief that conflicting parties will find a mutually beneficial solution to their disagreement , 320, 329
Women; see also Gender differences board members, 75 discrimination against, 63, 75 exclusion from social networks, 296
Word-of-mouth marketing, 275
Workaholic A person who is highly involved in work, feels compelled to work, and has a low enjoyment of work , 114
Workers; see Employees Workforce diversity; see Diversity
Work-life balance The degree to which a person minimizes conflict between work and nonwork demands , 20–21, 113, 114–115
Work overload, 112–113, 114 Workspace design, 272
Z Zone of indifference, 287
Trust Positive expectations one person has toward another person in situations involving risk , 109
empowerment and, 175, 176 in negotiations, 329, 331 power and, 285 in teams, 237–238, 240
U Uncertainty avoidance A cross-cultural value describing the degree to which people in a culture tolerate ambiguity (low uncertainty avoidance) or feel threat- ened by ambiguity and uncertainty (high uncertainty avoidance) , 54, 55 Unfreezing The first part of the change process, in which the change agent pro- duces disequilibrium between the driving and restraining forces , 427, 431–433 Upward appeal A type of influence in which someone with higher authority or expertise is called on in reality or symbolically to support the influencer’s position , 299
Urgency for change, 431–433 Utilitarianism, 49 Utility; see Subjective expected utility
V Value
claiming, 329–330 creating, 328–329, 330–331
Values Relatively stable, evaluative beliefs that guide a person’s preferences for outcomes or courses of action in a variety of situations , 15; see also Cultural values
congruence, 47–48 espoused and enacted, 399–400 ethical, 48–49 individual behavior and, 47 Machiavellian, 304 organizational, 45, 47–49, 398 personal, 45, 46–48 personality traits and, 45 shared, 15, 45, 52, 109 types, 45–47 in workplace, 45
Value systems, 45 Viral change, 438 Viral marketing, 275
Virtual teams Teams whose members operate across space, time, and organi- zational boundaries and are linked through information technologies to achieve organizational tasks , 239; see also Teams
challenges, 240 description, 221
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- Cover
- Title
- Copyright
- Contents
- Preface
- 1 INTRODUCTION
- CHAPTER 1 Introduction to the Field of Organizational Behavior
- Welcome to the Field of Organizational Behavior!
- The Field of Organizational Behavior
- Historical Foundations of Organizational Behavior
- Why Study Organizational Behavior?
- Perspectives of Organizational Effectiveness
- Open Systems Perspective
- Global Connections 1.1: Zara Relies on Open Systems Thinking for Fast Fashion
- Organizational Learning Perspective
- High-Performance Work Practices (HPWP) Perspective
- Stakeholder Perspective
- Connecting the Dots: Organizational Effectiveness and Organizational Behavior
- Contemporary Challenges for Organizations
- Globalization
- Increasing Workforce Diversity
- Emerging Employment Relationships
- Anchors of Organizational Behavior Knowledge
- The Systematic Research Anchor
- Debating Point: Is There Enough Evidence to Support Evidence-Based Management?
- The Multidisciplinary Anchor
- The Contingency Anchor
- The Multiple Levels of Analysis Anchor
- The Journey Begins
- Chapter Summary
- Key Terms
- Critical Thinking Questions
- Case Study: Improving Health by Getting Lean
- Web Exercise: Diagnosing Organizational Stakeholders
- Self-Assessment: It all Makes Sense?
- 2 INDIVIDUAL BEHAVIOR AND PROCESSES
- CHAPTER 2 Individual Behavior, Personality, and Values
- MARS Model of Individual Behavior and Performance
- Employee Motivation
- Ability
- Role Perceptions
- Situational Factors
- Types of Individual Behavior
- Task Performance
- Organizational Citizenship
- Counterproductive Work Behaviors
- Joining and Staying with the Organization
- Maintaining Work Attendance
- Personality in Organizations
- Personality Determinants: Nature versus Nurture
- Five-Factor Model of Personality
- Jungian Personality Theory and the Myers-Briggs Type Indicator
- Personality Testing in Organizations
- Debating Point: Should Companies Use Personality Tests to Select Job Applicants?
- Values in the Workplace
- Types of Values
- Values and Individual Behavior
- Values Congruence
- Ethical Values and Behavior
- Three Ethical Principles
- Moral Intensity, Moral Sensitivity, and Situational Influences
- Supporting Ethical Behavior
- Values Across Cultures
- Individualism and Collectivism
- Power Distance
- Uncertainty Avoidance
- Achievement-Nurturing Orientation
- Global Connections 2.1: Working with High Power Distance in China
- Caveats About Cross-Cultural Knowledge
- Cultural Diversity Within the United States
- Chapter Summary
- Key Terms
- Critical Thinking Questions
- Case Study: Pushing Papers Can Be Fun
- Class Exercise: Test Your Knowledge of Personality
- Class Exercise: Personal Values Exercise
- Team Exercise: Ethics Dilemma Vignettes
- Self-Assessment: Are You Introverted or Extroverted?
- CHAPTER 3 Perceiving Ourselves and Others in Organizations
- Self-Concept: How We Perceive Ourselves
- Self-Concept Complexity, Consistency, and Clarity
- Self-Enhancement
- Self-Verification
- Self-Evaluation
- The Social Self
- Self-Concept and Organizational Behavior
- Perceiving the World Around Us
- Perceptual Organization and Interpretation
- Specific Perceptual Processes and Problems
- Stereotyping in Organizations
- Attribution Theory
- Self-Fulfilling Prophecy
- Other Perceptual Effects
- Improving Perceptions
- Awareness of Perceptual Biases
- Debating Point: Do We Need Diversity Training Programs?
- Improving Self-Awareness
- Meaningful Interaction
- Global Connections 3.1: Experiencing Meaningful Interaction on the Front Line
- Global Mindset: Developing Perceptions Across Borders
- Developing a Global Mindset
- Developing a Global Mindset Through Immersion
- Chapter Summary
- Key Terms
- Critical Thinking Questions
- Case Study: Hy Dairies, Inc.
- Web Exercise: Diversity & Stereotyping on Display in Corporate Websites
- Team Exercise: Personal and Organizational Strategies for Developing a Global Mindset
- Self-Assessment: How Much Does Work Define Your Self-Concept?
- CHAPTER 4 Workplace Emotions, Attitudes, and Stress
- Emotions in the Workplace
- Types of Emotions
- Emotions, Attitudes, and Behavior
- Debating Point: Is Having Fun at Work Really a Good Idea?
- Managing Emotions at Work
- Emotional Display Norms Across Cultures
- Emotional Dissonance
- Emotional Intelligence
- Emotional Intelligence Outcomes and Training
- Job Satisfaction
- Job Satisfaction and Work Behavior
- Job Satisfaction and Performance
- Job Satisfaction and Customer Satisfaction
- Job Satisfaction and Business Ethics
- Organizational Commitment
- Consequences of Affective and Continuance Commitment
- Building Organizational Commitment
- Work-Related Stress and Its Management
- General Adaptation Syndrome
- Consequences of Distress
- Stressors: The Causes of Stress
- Global Connections 4.1: Working to Death in China
- Individual Differences in Stress
- Managing Work-Related Stress
- Chapter Summary
- Key Terms
- Case Study: Rough Seas on the LINK650
- Class Exercise: Strengths-Based Coaching
- Team Exercise: Ranking Jobs on Their Emotional Labor
- Self-Assessment: Are You in Touch with Your Emotions?
- CHAPTER 5 Foundations of Employee Motivation
- Employee Engagement
- Employee Drives and Needs
- Individual Differences in Needs
- Maslow's Needs Hierarchy Theory
- Learned Needs Theory
- Four-Drive Theory
- Expectancy Theory of Motivation
- Expectancy Theory in Practice
- Organizational Behavior Modification and Social Cognitive Theory
- Organizational Behavior Modification
- Global Connections 5.1: Reinforcing Work Behavior Through Gamification
- Social Cognitive Theory
- Goal Setting and Feedback
- Balanced Scorecard
- Characteristics of Effective Feedback
- Sources of Feedback
- Evaluating Goal Setting and Feedback
- Organizational Justice
- Equity Theory
- Debating Point: Does Equity Motivate More than Equality?
- Procedural Justice
- Chapter Summary
- Key Terms
- Critical Thinking Questions
- Case Study: Predicting Harry's Work Effort
- Case Study: Cincinnati Super Subs
- Class Exercise: Needs Priority Exercise
- Class Exercise: The Learning Exercise
- Team Exercise: Bonus Decision Exercise
- Self-Assessment: Need Strength Questionnaire
- CHAPTER 6 Applied Performance Practices
- The Meaning of Money in the Workplace
- Financial Reward Practices
- Membership- and Seniority-Based Rewards
- Job Status–Based Rewards
- Competency-Based Rewards
- Performance-Based Rewards
- Improving Reward Effectiveness
- Debating Point: Is It Time to Ditch the Performance Review?
- Link Rewards to Performance
- Ensure That Rewards Are Relevant
- Use Team Rewards for Interdependent Jobs
- Ensure That Rewards Are Valued
- Watch Out for Unintended Consequences
- Global Connections 6.1: When Rewards Go Wrong
- Job Design Practices
- Job Design and Work Efficiency
- Scientific Management
- Problems with Job Specialization
- Job Design and Work Motivation
- Core Job Characteristics
- Global Connections 6.2: Customer Talks Raise Task Significance and Identity
- Critical Psychological States
- Individual Differences
- Social and Predictability Job Characteristics
- Job Design Practices that Motivate
- Job Rotation
- Job Enlargement
- Job Enrichment
- Empowerment Practices
- Supporting Empowerment
- Global Connections 6.3: Svenska Handelsbanken Branch-Level Empowerment
- Self-Leadership Practices
- Self-Leadership Strategies
- Effectiveness of Self-Leadership
- Personal and Situational Predictors of Self-Leadership
- Chapter Summary
- Key Terms
- Critical Thinking Questions
- Case Study: Yakkatech, Inc.
- Team Exercise: Is Student Work Enriched?
- Self-Assessment: What Is Your Attitude Toward Money?
- CHAPTER 7 Decision Making and Creativity
- Rational Choice Paradigm of Decision Making
- Rational Choice Decision-Making Process
- Problems with the Rational Choice Paradigm
- Identifying Problems and Opportunities
- Problems with Problem Identification
- Global Connections 7.1: Famous Missed Opportunities
- Identifying Problems and Opportunities More Effectively
- Searching for, Evaluating, and Choosing Alternatives
- Problems with Goals
- Problems with Information Processing
- Problems with Maximization
- Evaluating Opportunities
- Emotions and Making Choices
- Intuition and Making Choices
- Making Choices More Effectively
- Implementing Decisions
- Evaluating Decision Outcomes
- Escalation of Commitment
- Evaluating Decision Outcomes More Effectively
- Creativity
- The Creative Process
- Characteristics of Creative People
- Organizational Conditions Supporting Creativity
- Activities That Encourage Creativity
- Employee Involvement in Decision Making
- Debating Point: Should Organizations Practice Democracy?
- Global Connections 7.2: Brasilata, the Ideas Company
- Benefits of Employee Involvement
- Contingencies of Employee Involvement
- Chapter Summary
- Key Terms
- Critical Thinking Questions
- Case Study: Employee Involvement Cases
- Team Exercise: Where in the World Are We?
- Class Exercise: The Hopping Orange
- Class Exercise: Creativity Brainbusters
- Self-Assessment: Measuring Your Creative Personality
- 3 TEAM PROCESSES
- CHAPTER 8 Team Dynamics
- Teams and Informal Groups
- Informal Groups
- Advantages and Disadvantages of Teams
- The Challenges of Teams
- A Model of Team Effectiveness
- Organizational and Team Environment
- Team Design Elements
- Task Characteristics
- Team Size
- Team Composition
- Global Connections 8.1: Finding Team Players at Menlo Innovations
- Team Processes
- Team Development
- Developing Team Identities and Mental Models
- Team Norms
- Team Cohesion
- Team Trust
- Self-Directed Teams
- Success Factors for Self-Directed Teams
- Virtual Teams
- Debating Point: Are Virtual Teams More Trouble Than They're Worth?
- Success Factors for Virtual Teams
- Team Decision Making
- Constraints on Team Decision Making
- Improving Creative Decision Making in Teams
- Brainstorming
- Chapter Summary
- Key Terms
- Critical Thinking Questions
- Case Study: ArbreCorp Ltée
- Team Exercise: Team Tower Power
- Team Exercise: Human Checkers
- Team Exercise: Mist Ridge
- Self-Assessment: What Team Roles Do You Prefer?
- CHAPTER 9 Communicating in Teams and Organizations
- The Importance of Communication
- A Model of Communication
- Influences on Effective Encoding and Decoding
- Communication Channels
- Internet-Based Communication
- Problems with E-Mail
- Global Connections 9.1: Good-Bye E-Mail, Hello Social Media!
- Workplace Communication Through Social Media
- Nonverbal Communication
- Choosing the Best Communication Channel
- Social Acceptance
- Media Richness
- Communication Channels and Persuasion
- Communication Barriers (Noise)
- Information Overload
- Cross-Cultural and Gender Communication
- Nonverbal Differences Across Cultures
- Global Connections 9.2: Politely Waiting for Some Silence
- Gender Differences in Communication
- Improving Interpersonal Communication
- Getting Your Message Across
- Active Listening
- Improving Communication Throughout the Hierarchy
- Workspace Design
- Internet-Based Organizational Communication
- Direct Communication With Top Management
- Communicating Through the Grapevine
- Grapevine Characteristics
- Grapevine Benefits and Limitations
- Debating Point: Should Management Use the Grapevine to Communicate to Employees?
- Chapter Summary
- Key Terms
- Critical Thinking Questions
- Case Study: Communicating with the Millennials
- Team Exercise: Active Listening Exercise
- Team Exercise: Cross-Cultural Communication Game
- Self-Assessment: Are You an Active Listener?
- CHAPTER 10 Power and Influence in the Workplace
- The Meaning of Power
- Sources of Power in Organizations
- Legitimate Power
- Reward Power
- Coercive Power
- Expert Power
- Referent Power
- Contingencies of Power
- Substitutability
- Centrality
- Visibility
- Discretion
- Debating Point: How Much Power Do CEOs Really Possess?
- The Power of Social Networks
- Social Capital and Sources of Power
- Gaining Power Through Social Networks
- Consequences of Power
- Influencing Others
- Global Connections 10.1: The Art and Science of Managing Your Boss
- Types of Influence Tactics
- Consequences and Contingencies of Influence Tactics
- Organizational Politics
- Minimizing Organizational Politics
- Chapter Summary
- Key Terms
- Critical Thinking Questions
- Case Study: Resonus Corporation
- Team Exercise: Deciphering the Network
- Team Exercise: Managing Your Boss
- Self-Assessment: How Do You Influence Coworkers and Other Peers?
- CHAPTER 11 Conflict and Negotiation in the Workplace
- The Meaning and Consequences of Conflict
- Is Conflict Good or Bad?
- The Emerging View: Task and Relationship Conflict
- Global Connections 11.1: High Cost of On-Board Conflicts
- Conflict Process Model
- Structural Sources of Conflict in Organizations
- Incompatible Goals
- Differentiation
- Interdependence
- Scarce Resources
- Ambiguous Rules
- Communication Problems
- Interpersonal Conflict Handling Styles
- Choosing the Best Conflict Handling Style
- Cultural and Gender Differences in Conflict Handling Styles
- Structural Approaches to Conflict Management
- Emphasizing Superordinate Goals
- Reducing Differentiation
- Improving Communication and Mutual Understanding
- Reducing Interdependence
- Increasing Resources
- Clarifying Rules and Procedures
- Third-Party Conflict Resolution
- Choosing the Best Third-Party Intervention Strategy
- Resolving Conflict through Negotiation
- Bargaining Zone Model of Negotiations
- Debating Point: Is Creating Value Such a Good Negotiation Strategy?
- Strategies for Claiming Value
- Strategies for Creating Value
- Situational Influences on Negotiations
- Chapter Summary
- Key Terms
- Critical Thinking Questions
- Case Study: Car Wars at Wolfsburg
- Class Exercise: The Contingencies of Conflict Handling
- Team Exercise: Ugli Orange Role Play
- Self-Assessment: What Is Your Preferred Conflict Handling Style?
- CHAPTER 12 Leadership in Organizational Settings
- What Is Leadership?
- Shared Leadership
- Transformational Leadership Perspective
- Develop and Communicate a Strategic Vision
- Model the Vision
- Encourage Experimentation
- Build Commitment Toward the Vision
- Transformational Leadership and Charisma
- Evaluating the Transformational Leadership Perspective
- Managerial Leadership Perspective
- Task-Oriented and People-Oriented Leadership
- Servant Leadership
- Path-Goal Leadership Theory
- Other Managerial Leadership Theories
- Leadership Substitutes
- Implicit Leadership Perspective
- Prototypes of Effective Leaders
- The Romance of Leadership
- Competency Perspective of Leadership
- Authentic Leadership
- Competency Perspective Limitations and Practical Implications
- Cross-Cultural and Gender Issues in Leadership
- Debating Point: Should Leaders Really Be Authentic All the Time?
- Gender and Leadership
- Chapter Summary
- Key Terms
- Critical Thinking Questions
- Case Study: A Window on Life
- Team Exercise: Leadership Diagnostic Analysis
- Self-Assessment: Do Leaders Make a Difference?
- 4 ORGANIZATIONAL PROCESSES
- CHAPTER 13 Designing Organizational Structures
- Division of Labor and Coordination
- Division of Labor
- Coordinating Work Activities
- Elements of Organizational Structure
- Span of Control
- Debating Point: Should Organizations Cut Back Middle Management?
- Centralization and Decentralization
- Formalization
- Mechanistic versus Organic Structures
- Forms of Departmentalization
- Simple Structure
- Functional Structure
- Global Connections 13.1: Toyota Shifts Gears from a Functional to Regional Structure
- Divisional Structure
- Team-Based Structure
- Matrix Structure
- Network Structure
- Contingencies of Organizational Design
- External Environment
- Organizational Size
- Technology
- Organizational Strategy
- Chapter Summary
- Key Terms
- Critical Thinking Questions
- Case Study: Merritt's Bakery
- Team Exercise: The Club Ed Exercise
- Self-Assessment: What Organizational Structure Do You Prefer?
- CHAPTER 14 Organizational Culture
- Elements of Organizational Culture
- Espoused vs. Enacted Values
- Global Connections 14.1: BP's Espoused vs. Enacted Values
- Content of Organizational Culture
- Organizational Subcultures
- Deciphering Organizational Culture Through Artifacts
- Organizational Stories and Legends
- Organizational Language
- Rituals and Ceremonies
- Physical Structures and Symbols
- Is Organizational Culture Important?
- Contingencies of Organizational Culture and Effectiveness
- Debating Point: Is Corporate Culture an Overused Phrase?
- Organizational Culture and Business Ethics
- Merging Organizational Cultures
- Bicultural Audit
- Strategies for Merging Different Organizational Cultures
- Changing and Strengthening Organizational Culture
- Actions of Founders and Leaders
- Align Artifacts with the Desired Culture
- Introduce Culturally Consistent Rewards and Recognition
- Support Workforce Stability and Communication
- Use Attraction, Selection, and Socialization for Cultural "Fit"
- Organizational Socialization
- Organizational Socialization as a Learning and Adjustment Process
- Organizational Socialization and Psychological Contracts
- Stages of Organizational Socialization
- Improving the Socialization Process
- Chapter Summary
- Key Terms
- Critical Thinking Questions
- Case Study: Hillton's Transformation
- Team Exercise: Organizational Culture Metaphors
- Class Exercise: Diagnosing Corporate Culture Proclamations
- Self-Assessment: Which Corporate Culture Do You Prefer?
- CHAPTER 15 Organizational Change
- Lewin's Force Field Analysis Model
- Understanding Resistance to Change
- Why Employees Resist Change
- Unfreezing, Changing, and Refreezing
- Creating an Urgency for Change
- Reducing the Restraining Forces
- Global Connections 15.1: Communicate, Involve, or Change Your People
- Refreezing the Desired Conditions
- Leadership, Coalitions, and Pilot Projects
- Transformational Leadership and Change
- Global Connections 15.2: Driving Change Through a "One Ford" Vision
- Coalitions, Social Networks, and Change
- Pilot Projects and Diffusion of Change
- Four Approaches to Organizational Change
- Action Research Approach
- Appreciative Inquiry Approach
- Debating Point: What's the Best Speed for Organizational Change?
- Large Group Intervention Approach
- Parallel Learning Structure Approach
- Cross-Cultural and Ethical Issues in Organizational Change
- Organizational Behavior: The Journey Continues
- Chapter Summary
- Key Terms
- Critical Thinking Questions
- Case Study: TransAct Insurance Corporation
- Team Exercise: Strategic Change Incidents
- Self-Assessment: Are You Tolerant of Change?
- ADDITIONAL CASES
- Case 1: A MIR Kiss?
- Case 2: Arctic Mining Consultants
- Case 3: Chengdu Bus Group
- Case 4: Fran Hayden Joins Dairy Engineering
- Case 5: From Lippert-Johanson Incorporated to Fenway Waste Management
- Case 6: From REO to Nuclear to Nucor
- Case 7: Going to the X-Stream
- Case 8: The Regency Grand Hotel
- Case 9: Simmons Laboratories
- Case 10: Star Enterprises—Rita's Issues at Work
- Case 11: Tamarack Industries
- Case 12: The Outstanding Faculty Award
- Appendix A: Theory Building and Systematic Research Methods
- Endnotes
- Photo Credits
- Organization Index
- Name Index
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- Glossary/Subject Index
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